HomeMy WebLinkAbout06/09/2021 STUDY SESSION AGENDA PACKET______________________________________________________________
CITY COUNCIL 345 6th Street, Suite 100, Bremerton, WA 98337 Phone (360) 473-5280
WEDNESDAY, JUNE 9, 2021
CITY COUNCIL STUDY SESSION AGENDA
5:00 PM – Via Zoom Webinar
To help reduce the spread of COVID-19, the City Council is conducting a Study Session via Zoom Webinar.
The Study Session is open to the public to listen in, but there will be no opportunities for input; no action is
anticipated; and the content of these items is subject to change. If approved by the Council, these items will be
placed on the June 16, 2021 City Council Virtual Meeting Agenda…
Members of the public are invited to join the Zoom webinar by clicking on the following link:
https://us02web.zoom.us/j/82564952009?pwd=NnNlTzVsWm9Fc3VNM2VhanlpbmxUQT09
Or iPhone one-tap:
US: +12532158782,,82564952009#,,,,*209823# or +16699006833,,82564952009#,,,,*209823#
Or Telephone: Dial (for higher quality, dial a number based on your current location):
US: +1 253 215 8782 or +1 669 900 6833 or +1 346 248 7799 or +1 312 626 6799
Webinar ID: 825 6495 2009
Passcode: 209823
Public questions or comments may be submitted ahead of time to City.Council@ci.bremerton.wa.us
A.INFORMATION BRIEFING
1.Overview of Puget Sound Energy's Goal of “Being a Beyond Net Zero Carbon Company by
2045”; and the COVID-19 Bill Assistance Program by PSE Representatives (Information
only)
B.BRIEFINGS ON AGENDA ITEMS
1.Local Agency Contract with Miles Resources, LLC for the 6th Street Phase II Pavement
Preservation Project; and related Budget Adjustment
2.Approve promotion of Chris Mottner as the Internal Services Manager at Band 16, Rate 8 of
the 2021 Management, Professional, Confidential and Fiduciary Salary Plan
3.Contract with Insituform Technologies, LLC for 2021 Sewer Rehabilitation
4.Utility Services Agreement with NAVFAC NW for Puget Sound Naval Shipyard/Naval Base
Kitsap-Bremerton (Corrected Title)
5.Proposed Public Hearing and Resolution to adopt the 2022 CDBG/HOME Policy Plan
6.Ordinance amending Ordinance No. 5408 relating to the City of Bremerton Fiscal Year 2021
Budget
7.Affiliation Agreement w/Central Washington University for Training of Health Care
Professionals
8.Professional Services Agreement with Systems Design West, LLC for Ambulance Billing
Service
9.Interlocal Agreement with South Puget Sound Fire Coordinating Group for Wildfire Personnel
Training and Certification
10.Ordinance amending Sections 1.02.020 and 2.50.040(b) of the Bremerton Municipal Code,
establishing Juneteenth as a legal holiday for the City of Bremerton
C.GENERAL COUNCIL BUSINESS
Other General Council Business
D.ADJOURNMENT OF STUDY SESSION
Form Created 5/4/15
INFORMATION ONLY ITEM
CITY OF BREMERTON
CITY COUNCIL
SUBJECT: Overview of Puget Sound
Energy’s Goal of “Being a Beyond Net Zero
Carbon Energy Company by 2045” and the
“COVID-19 Bill Assistance Program”
Study Session Date: June 9, 2021
Presenter:
Council President
Kevin Gorman
Phone:
(360) 473-5280
SUMMARY: Matthew Mauer, PSE Senior Government Affairs Representative for Kitsap County
and his colleague Melissa Troy have been provided this opportunity to present an overview on two
important PSE community programs:
PSE’s efforts to address climate change through clean energy. Earlier this year, PSE announced its
aspirational goal of becoming a Beyond Net Zero Carbon Energy Company by 2045. There are
different components that will help us get there, including the state’s Clean Energy Transformation
Act (CETA), a groundbreaking law that sets clean energy targets for our electric supply.
And PSE’s efforts to assist customers experiencing difficulty paying their utility bills stemming from
the COVID-19 pandemic. Effective immediately, Puget Sound Energy is helping qualified customers
pay their utility bills using our COVID-19 Bill Assistance Program.
HANDOUTS: 1) PSE Beyond Net Zero Email; 2) PSE Beyond Net Zero Handout;
3) Covid-19 Bill Assistance Program Email; and 4) Covid-19 Bill Assistance Program Handout
5) Power Point Presentation
STUDY SESSION AGENDA: ☐ No Presentation ☒ Full Presentation (15-minutes)
A1
From: Mauer, Matthew <Matthew.Mauer@pse.com>
Sent: Tuesday, May 18, 2021 12:46 PM
To: City Council <City.Council@ci.bremerton.wa.us>
Subject: FW: PSE launches survey for input on clean energy future
Dear Councilmembers,
I’m reaching out to share about PSE’s efforts to address climate change through clean energy and an
opportunity for you to provide input. Earlier this year, PSE announced its aspirational goal of becoming a
Beyond Net Zero Carbon energy company by 2045. There are different components that will help us get
there, including the state’s Clean Energy Transformation Act (CETA), a groundbreaking law that sets
clean energy targets for our electric supply.
We’re now developing a new clean electric energy plan with equity and community interests in mind,
and we want your input to shape the plan. I’m pleased to announce the launch of PSE’s Clean Electricity
Benefits survey, which we will use to inform PSE's first Clean Energy Implementation Plan (CEIP), a four-
year roadmap to guide our clean electricity investments. The survey will be available until June 1, 2021
and is available in various languages.
This first CEIP will guide our clean electricity programs, actions and investments for 2022-2025 and helps
us work towards reaching our CETA goals of 100 percent clean electricity by 2045. We have an ambitious
schedule to deliver our first CEIP roadmap by Oct. 1, 2021 in line with the schedule given to us by the
Washington Utilities and Transportation Commission. We want to move quickly to make the changes
our customers and environment need, and ensure we are listening and learning as we make progress
together. This year is only the start.
We want to ensure all customers benefit from the transition to clean electricity, and we know we can’t
do this work alone. We’re partnering with our customers, our new Equity Advisory Group, and other
stakeholders to develop and implement the CEIP roadmap in a way that addresses our customer needs
and CETA milestones.
As we transform our electric system, PSE remains committed to reliable, safe, and affordable energy for
our customers. To learn more and be a part of the clean electricity transformation, visit:
cleanenergyplan.pse.com and please support this work by filling out the survey below.
PSE’s Clean Electricity Benefits survey: surveymonkey.com/r/6K7S87C
Sincerely,
Matthew Mauer
Sr. Government Affairs Representative
PUGET SOUND ENERGY
Cell: (360) 523-8667
Matthew.Mauer@pse.com
Learn about our commitment to clean energy: pse.com/TOGETHER
pse.com
Beyond Net Zero Carbon by 2045
By 2045, Puget Sound Energy aspires to be a beyond net zero carbon energy company.
We envision the energy we provide not only slowing climate change, but helping reverse it.
To that end, we have set a collection of commitments and aspirational goals that equitably and sustainably aim to achieve the following:
• Reducing emissions from PSE electric and gas operations and electric supply to net zero by 2030.
ºOur commitment to decarbonizing utility operations and successfully transforming PSE’s energy supply portfolio with carbon
free resources.
• Reach net zero carbon emissions for natural gas sales by 2045—customer use in homes and businesses—with an interim target of
a 30% reduction in emissions by 2030.
ºOur aspiration to transform PSE’s natural gas distribution business through renewable natural gas, new technologies, and
policies that enable transformation while supporting reliability and affordability for PSE customers.
• Going beyond PSE’s emissions to reduce carbon emissions in other sectors.
ºOur goal to partner with customers and industry to identify programs and products that help enable a decarbonized region.
Simply stated, PSE will be an advocate for cost-effective actions to reduce statewide carbon.
We don’t have all of the answers today, but with the right combination of legislative, regulatory, commercial and technological enablers we
think this is possible. We have decades of experience with renewable energy projects, conservation and innovation that we will leverage,
but we will also need support and cooperation from key stakeholders to achieve success. Our commitment remains steadfast to being
the clean energy provider of choice for our customers and we will balance our “Beyond Net Zero by 2045” objective with our customers’
expectations for uncompromised safety, reliability and affordability.
We cannot get there alone and we must do so in a way that benefits all customers and communities we serve, especially those who have
not traditionally had access to or benefitted from clean energy. Affordability for our customers has been a key focal point in our almost
one hundred fifty year history and will remain so as we proceed on this journey. This challenge to protect our most vulnerable and remain
sustainable will necessitate healthy and complementary electric and natural gas energy systems and other technologies that may not yet be
commercially feasible to maintain both affordability and reliability. Our net zero carbon aspiration is built on our confidence in this region as
one of the most creative and innovative in the world coupled with Washington State’s commitment to leadership in clean energy. Our ability
to leverage all of these, in partnership with customers representing a diversity of interests and viewpoints, will ensure an equitable transition.
We invite you to join us. Together, we can create a clean energy future for all.
7527 01/21
PSE is the largest producer of wind energy in Washington, and the fourth largest utility owner of wind power in the nation
From: Mauer, Matthew <Matthew.Mauer@pse.com>
Sent: Wednesday, June 2, 2021 2:26 PM
To: Mauer, Matthew <Matthew.Mauer@pse.com>
Subject: PSE COVID Bill Assistance Program
Good afternoon,
I’m reaching out regarding PSE’s efforts to assist customers experiencing difficulty paying their utility
bills stemming from the COVID-19 pandemic. Effective immediately, Puget Sound Energy is helping
qualified customers pay their utility bills using our COVID Bill Assistance Program.
The COVID Bill Assistance Program offers:
Up to $2,500 in additional utility bill payment assistance.
Up to $2,500 to forgive past balances for customers who received energy assistance in the past.
Extended payment plans up to 18 months.
The option to change your energy bill’s due date to help with monthly budgeting.
PSE is committed to being a trusted community partner and doing whatever it takes to get our Puget
Sound families through this challenging time. In 2020, we made over $9 million in bill assistance
available to over 15,000 customers, and now we’re ready to do even more. I have attached a
partnership toolkit and a fact sheet for your reference. Please feel free to use them in communication
with your community. If you have questions on any PSE assistance program don’t hesitate to get in
touch with me.
PSE customers can learn more by visiting www.pse.com/assistance
Thank you,
Matthew Mauer
Sr. Government Affairs Representative
PUGET SOUND ENERGY
Cell: (360) 523-8667
Matthew.Mauer@pse.com
Learn about our commitment to clean energy: pse.com/TOGETHER
pse.com/assistance
7980 09/20
The COVID Bill Assistance Program is a Puget Sound Energy program created to help residential
customers facing financial hardship due to COVID-19. This program allows customers to receive:
• Up to $2,500 in additional utility bill payment assistance.
• Up to $2,500 to forgive past balances for customers who received energy assistance in the past.
• Extended payment plans up to 18 months.
• The option to change their energy bill’s due date.
COVID Bill Assistance Program
Who can qualify for the COVID Bill Assistance Program?
• Customers qualify based on their income. Please see the table for income requirements.
• Go to pse.com/covidhelp to learn more about income requirements.
How can customers apply for the program?
1. By visiting pse.com/assistance
2. Providing a photo ID and the necessary income documentation.
• Documentation varies depending on the customer situation. Documents may include bank
statements, pay stubs, award letters, etc.
3. Completing the application form
What other measures is PSE offering to help customers in need of assistance?
In addition to the COVID Bill Assistance Program, PSE also offers payment plans and allows customers to
change their bill’s due date. Although this program is for residential customers, PSE is offering businesses the
option for extended payments.
Income Table
Number of Persons in Household Maximun Monthly Net Income Limit
1 $2,147
2 $2,903
3 $3,660
4 $4,417
5 $5,173
6 $5,930
7 $6,687
8 $7,443
9 $8,200
10 $8,957
May 2021
Beyond Net Zero Carbon
Our commitment to carbon emissions reduction
2
•Washington’s largest and oldest utility,
serving 1.5 million customers in 10 counties.
•Our 3,100+ employees live and work in the
communities we serve.
•We share our customers’ concern for the
environment, balanced with their expectations for
uncompromised reliability, affordability and safety.
Local
energy
provider for
nearly 150
years.
3
“Climate change is an existential
threat that cannot be ignored, and we
are doing our part to move further
and faster to save our planet.”
—PSE President and CEO Mary Kipp
4
•We envision the energy we provide slowing
climate change.
•Target: Reduce our own carbon emissions to
net zero and go beyond by helping other sectors
enable carbon reduction across Washington.
•Holistic approach encompasses our entire energy
supply—both electric and natural gas—our
operations, and the positive impact that we can
have on other industries and sectors.
By 2045,
we aspire to
be a Beyond
Net Zero
Carbon
energy
company.
5
Our three
pathways
to Beyond
Net Zero
Carbon.
PSE operations and electric supply
We will achieve the following:
•Net zero carbon emissions for all PSE operations and electric supply by 2030
•100% carbon free electric supply by 2045
Beyond PSE reported emissions
We will help other sectors reduce carbon, including:
•Electric vehicles
•Liquefied natural gas for marine and long haul trucking
•Renewable natural gas/hydrogen or other low carbon fuels for transportation
and other applications
•Upstream methane emission reduction
Natural gas sales customer end use
Our aspirational objectives:
•Reduce customer end use carbon emissions 30% by 2030
•Net zero carbon emissions for customer end use by 2045
Holistic
roadmap
to Beyond
Net Zero
Carbon by
2045.
6
For roadmap details,
see PSE’s Pathway to
Beyond Net Zero
Carbon by 2045
published Jan. 2021
on pse.com.
7
Equitable,
sustainable
clean
energy
for all.
•Slowing climate change requires partnership across
all sectors.
•The energy solutions pursued must improve the
livelihoods of all people, in particular, those who
shoulder an outsized share of the climate burden.
•Beyond Net Zero Carbon by 2045 advisory group:
Diverse, external committee of community members,
partners, technical experts and others to provide
meaningful input and enable opportunities for
collective action.
Resources 8
•PSE’s clean energy commitment and Beyond Net Zero Carbon goal: https://www.pse.com/pages/together
•PSE’s “Pathway to Beyond Net Zero Carbon by 2045” report: https://www.pse.com/-/media/PDFs/Press-
release/7535_Pathway_to_Beyond_Net_Zero_Report.pdf
•PSE’s Beyond Net Zero Carbon by 2045 pledge: https://www.pse.com/-/media/PDFs/Press-release/7527-NetZeroPledge.pdf
•PSE sets "Beyond Net Zero Carbon" goal media release: https://www.pse.com/press-release/details/pse-sets-beyond-net-zero-carbon-goal
•PSE’s greenhouse gas policy statement: https://www.pse.com/pages/greenhouse-gas-policy
•PSE’s Clean Energy Implementation Plan information and Equity Advisory Group: http://cleanenergyplan.pse.com
•PSE’s Beyond Net Zero Carbon by 2045 video (0:30): https://www.youtube.com/watch?v=M02lflhaLmk
PSE RESOURCE LIST
9
AGENDA BILL
CITY OF BREMERTON
CITY COUNCIL
SUBJECT: Study Session Date: June 9, 2021
Local Agency Contract with Miles
Resources, LLC for the 6th Street Phase II
Pavement Preservation Project; and related
Budget Adjustment
COUNCIL MEETING Date: June 16, 2021
Department: PW & Utilities
Presenter: Shane Weber
Phone: (360) 473-2354
SUMMARY: Bids were opened for the project on June 2, 2021 and 3 bids were received. Miles
Resources LLC, is the lowest responsive, responsible bidder with their bid totaling $1,704,900.30,
including sales tax. The Washington State Department of Transportation is required to concur with
the City’s recommendation to award the contract, and the City is currently awaiting that concurrence .
The contract is in WSDOT standard format as required for Federal Aid Projects. The complete
contract is available for review in the Engineering Office. The project includes pavement grinding and
overlay, pavement markings, ADA curb ramp upgrades, watermain replacement, signal replacement,
and other related street improvements between Warren Avenue and Pacific Avenue.
ATTACHMENTS: 1) Site Plan; 2) Bid Tabulation; 3) Contract; 4) Fiscal Summary; 5) PSRC Funding
Award Letter
FISCAL IMPACTS (Include Budgeted Amount): This project is included in the transportation
capital budget but requires additional revenue. The budgeted amount in the 2021 Capital
Improvement Program is $1,440,440. Due to increased cost, a 2021 budget adjustment to
$2,050,000 is required. The additional budget will be from a combination of fund sources. See the
attached summary for the revenue details.
STUDY SESSION AGENDA: ☒ Limited Presentation ☐ Full Presentation
STUDY SESSION ACTION: ☐ Consent Agenda ☐ General Business ☐ Public Hearing
RECOMMENDED MOTION:
Move to award contract with Miles Resources LLC for the 6th Street Phase II Pavement Preservation
Project in the amount of $1,704,900.30, including sales tax and move to increase the 2021 project
budget to $2,050,000; 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
B1
6TH STPARK AVE.
WARREN AVE.
PACIFIC AVE.7TH STREET8TH STREET8TH STREETBROADWAY AVENUE6TH STREET9TH STREET7TH STREET8TH STREETCOGEAN AVENUE
MCKENZIE AVENUE8TH STREET(UNION STREET)4TH STREET5TH STREET6TH STREETPARK AVENUE
PACIFIC AVENUE
PLEASANT AVENUE
HIGHLAND AVENUE
WASHINGTON AVENUE2ND STREET1ST STREET(FRONT STREET)W
A
S
H
I
N
G
T
O
N
AVE
N
U
E BURWELL ST.BURWELL STREET4TH ST.5TH ST.6TH ST.WARREN AVE.PUGET SOUND NAVAL SHIPYARDEND OF PROJECTEND OF PROJECTOFSHEETVERT.HORIZ.SCALECITY OF BREMERTONREVISIONSDEPARTMENT OF PUBLIC WORKS & UTILITIESENGINEERING DIVISIONIF NOT SCALE ACCORDINGLYONE INCH AT FULL SCALE1/2"01"PN:6TH STREET PRESERVATION PROJECTVICINITY MAP11
BID TITLE:
SECOND LOW BIDDER - Sound Pacific $ 1,740,439.73
THIRD LOW BIDDER - Northwest Cascade $ 1,827,037.75
DATE
OPENED:
RECORDED
BY:
$ 1,508,235.00 ENGINEER ESTIMATE (INC SALES TAX)
APPARENT LOW BIDDER - Miles Resources $ 1,704,900.30
SUMMARY
Miles Resources LLC Yes $1,704,900.30
Sound Pacific Construction LLC Yes $1,740,439.73
Northwest Cascade Inc. Yes $1,827,037.75
CITY OF BREMERTON
BID TABULATION
BOND BASE BID SALES TAX TOTALNAME OF BIDDER
OPENED
BY:
6/2/2021 TIME
OPENED:
6th Street Phase II Pavement Preservation - Warren Ave to Pacific Ave
1:00 PM Angela Hoover
Angela Hoover
6th Street Preservation Phase II (Warren to Pacific Ave) 57 May 5, 2021
Local Agency Contract
Local Agency Contract (WSDOT Form 272-006a)
6th Street Preservation Phase II (Warren to Pacific Ave) 58 May 5, 2021
Local Agency Contract
2021 6th Street Preservation Phase II
Fiscal Summary
June 2021
FISCAL SUMMARY
2021 6th Street Preservation Phase II
The 6th Street Phase II project is budgeted in the 2021 Capital Improvement Plan for $1,440,440.
The total estimated cost to complete the construction of the project was updated to include the
bid cost and is now estimated at $2,050,000.
The additional funding sources are proposed as follows:
Fund Source 2021 CIP
Current Amount ($)
Increase ($) Revised Amount ($)
FHWA Grant $740,379 $385,358* $1,125,737
REET $135,876 $85,000** $220,876
Water Fund $564,185 $140,000*** $594,185
Total 1,440,440 $610,358 $2,050,000 (rounded)
*Supplemental federal aid grant received by PSRC, see award notice attached.
** Required as match for supplemental federal aid received by PSRC.
***Re-allocated funding from WT00032 – Anderson Creek – Dam #1 and Dam #2 Removal
Project
June 3, 2021
The Honorable Greg Wheeler
City of Bremerton
345 6th Street, Suite 100
Bremerton, WA 98337
Dear Mayor Wheeler
Congratulations! I’m pleased to let you know that the City of Bremerton is receiving $909,548 in
PSRC funding for the following projects:
PROJECT AWARD AMOUNT FUNDING DEADLINE
Kitsap Way - Northlake Way to SR 3 $524,190 July 15, 2021
6th Street Preservation Phase 2 $385,358 increase to 2021 award
due July 15, 2021
Funding was approved by the Puget Sound Regional Council’s Executive Board in April and
May. Supplemental Federal Highway Administration funds became available this year to award
to projects on PSRC’s adopted contingency lists from the last major project competition. Addi-
tionally, PSRC is directing funds to “ready to go” projects from the contingency lists to meet our
“use it or lose it” regional project delivery target for 2021.
Securing federal transportation funding for communities in the region is one of the key roles of
the PSRC. Our project selection process is merit-based and helps identify the highest priority
projects that will improve local and regional mobility and help achieve our long-range Regional
Transportation Plan.
As the region continues to work on maintaining and improving our transportation infrastructure,
we are grateful for partners like you working to enhance mobility, support a resilient economy,
and sustain a healthy environment and quality of life for people in the region.
Thank you for your leadership and for the excellent work by your staff during a difficult year. I
look forward to continuing to partner with you on efforts to help the region thrive now and into
the future.
Sincerely,
Josh Brown
Executive Director
Puget Sound Regional Council
cc: Tom Knuckey, Public Works Director
AGENDA BILL
CITY OF BREMERTON
CITY COUNCIL
SUBJECT: Study Session Date: June 9, 2021
Approve promotion of Chris Mottner as the
Internal Services Manager at Band 16, Rate
8 of the 2021 Management, Professional,
Confidential and Fiduciary Salary Plan
COUNCIL MEETING Date: June 16, 2021
Department: PW&U
Presenter: Tom Knuckey
Phone: (360) 473-2376
SUMMARY:
Chris Mottner has been the Facilities/Inventory Supervisor since 1996 and has been employed by the
City in a variety of Utilities and Facilities positions since 1979. On May 19th, Council created the
Internal Services Manager position; during presentations leading up to the creation, the PW&U
Director indicated his intent to promote Chris to this new position at Rate 8.
BMC Chapter 2.50.032(c)(3) requires Council approval when an employee is promoted, and it is
proposed that their salary be set higher than the next rate which he or she was receiving at the
former band. Mr. Mottner’s teamster compensation includes longevity pay, standby pay and
overtime; to match his current composite compensation it is requested Council approve his salary at
Rate 8 of Band 16.
ATTACHMENTS: (1) Letter of Engagement
FISCAL IMPACTS (Include Budgeted Amount): Annual salary is $120,585.36; a budget
adjustment is not required.
STUDY SESSION AGENDA: ☐ Limited Presentation ☒ Full Presentation
STUDY SESSION ACTION: ☐ Consent Agenda ☐ General Business ☐ Public Hearing
RECOMMENDED MOTION:
Move to authorize placement of Mr. Mottner’s salary at Rate 8 of Band 16 of the Management,
Professional, Confidential, and Fiduciary Salary Plan.
COUNCIL ACTION: Approve Deny Table Continue No Action
Form Updated 01/02/2018
B2
Tom Knuckey, PE
Director of Public Works & Utilities
100 Oyster Bay Avenue
Bremerton, WA 98312
Telephone: 360-473-2376
thomas.knuckey@ci.bremerton.wa.us
May 20, 2021
Chris Mottner
RE: Letter of Engagement
Dear Chris:
It is with great pleasure that I confirm your appointment to the position of Internal Services
Manager. Your position is exempt and included in the Management and Professional classifications
under BMC 2.50 as follows:
Position: Internal Services Manager
Department: Public Works & Utilities
Effective Date: July 1, 2021
Rate of Pay: $10,048.78 (Band 16, Rate 8) (Pending City Council Approval)
Appointment/Removal: Director of Public Works and Utilities
Supervisor: Director of Public Works and Utilities
Benefits: Pursuant to BMC Chapter 2.50
Vacation: 25 days (200 hours) prorated for 2021
You are an “at will” employee and may be terminated by the City without cause at any time
with thirty (30) days’ notice. You may be terminated for cause, without notice, and no
severance pay shall be paid.
This letter shall constitute your terms and conditions of employment with the City and there are
no other written or oral agreements that have not been set forth in this letter of engagement or
covered by Chapter 2.50 of the Bremerton Municipal Code (copy attached).
Please sign on the next page indicating your acceptance of our offer of employment as outlined
above and return it to Debbie Klinefelter in the Human Resources Office at 345 6th Street, Suite 100
Bremerton, WA 98337.
Sincerely,
Tom Knuckey, PE
Director of Public Works & Utilities
cc: Debbie Klinefelter, Human Resources Analyst
………………………………………………………………………………………………………
ACCEPTANCE OF JOB OFFER:
I, Chris Mottner, hereby accept the appointment to position of Internal Services Manager, effective
July 1, 2021 under the terms and conditions as set forth in this Letter of Engagement.
SIGNATURE:______________________________________ DATE: _______________
Chris Mottner
AGENDA BILL
CITY OF BREMERTON
CITY COUNCIL
SUBJECT: Contract with Insituform
Technologies, LLC for 2021 Sewer
Rehabilitation
Study Session Date: June 9, 2021
COUNCIL MEETING Date: June 16, 2021
Department: PW&U - Engineering
Presenter: William Davis
Phone: (360) 473-2312
SUMMARY: The project will rehabilitate approximately 6,500 lineal feet of sanitary sewer using the
cure-in-place-pipe (CIPP) method and reinstate approximately 115 side sewers. The pipes range in
size from 10-inch to 24-inch diameter.
One (1) bid was submitted, which was opened on June 2, 2021. The lowest responsive, responsible
bidder was Insituform Technologies, Inc, who submitted a bid in the amount of
$1,082,988.03 including sales tax.
ATTACHMENTS: 1. Contract; 2. Vicinity Map; and 3. Bid Tabulation. 4) Fiscal Summary.
FISCAL IMPACTS (Include Budgeted Amount): The budget amount in the 2021 Wastewater
Capital Budget for this project was $700,000. The overall project cost is now estimated at
$1,200,000. The additional money to fund the project will be coming from three different projects in
the 2021 Sewer Capital Budget, which is described in the Fiscal Summary.
STUDY SESSION AGENDA: ☒ Limited Presentation ☐ Full Presentation
STUDY SESSION ACTION: ☐ Consent Agenda ☐ General Business ☐ Public Hearing
RECOMMENDED MOTION:
Move to award the contract for the 2021 Sewer Rehabilitation to Insituform Technologies, Inc in the
amount of $1,082,988.03 (which includes sales tax) and authorize the Mayor to finalize and execute
the agreement with substantially the same terms and conditions as presented.
COUNCIL ACTION: Approve Deny Table Continue No Action
Form Updated 01/02/2018
B3
City of Bremerton May 2021
2021 Sewer Rehabilitation CF-1
CONTRACT (Page 1 of 3)
THIS AGREEMENT is dated the day of in the year 2021 by and between City of Bremerton (hereinafter called CITY) and (hereinafter called CONTRACTOR). CITY and CONTRACTOR, in consideration of the mutual covenants hereinafter set forth, agree as follows:
ARTICLE 1. WORK. CONTRACTOR shall complete the WORK as specified or indicated in the CITY's Contract Documents entitled 2021 Sewer Rehabilitation
ARTICLE 2. CONTRACT TIMES. The WORK shall obtain Substantial Completion by October 1, 2021. Time is of the essence as to each and every deadline set forth in this agreement. This provision has been specifically negotiated.
ARTICLE 3. LIQUIDATED DAMAGES. CITY and the CONTRACTOR recognize that time is of the essence for this Agreement and that the CITY will suffer financial loss if the WORK is not completed within the time specified in Article 2 herein, plus any extensions thereof allowed in accordance with Section 1-08.8 of the Standard Specifications which may be modified by the Special Provisions. They also recognize the delays, expense, and difficulties involved in proving in a legal proceeding the actual loss suffered by the CITY if the WORK is not completed on time. Accordingly, instead of requiring any such proof, the CONTRACTOR shall pay the CITY liquidated damages in the amount of $1000 per day after the date of Substantial Completion.
ARTICLE 4. CONTRACT PRICE. CITY shall pay CONTRACTOR for completion of the WORK in accordance with the Contract Documents in the amount set forth in the Bid Proposal, which shall include sales tax as provided in Section 1-07.2(2) of the Special Provisions.
ARTICLE 5. PAYMENT PROCEDURES. CONTRACTOR shall submit Applications for Payment in accordance with Section 1-09.9 of the Standard Specifications which may be modified by the Special Provisions. Applications for Payment will be processed by ENGINEER as provided in the Special Provisions
_____________________ Contractor Initials
Insituform Technologies, LLC
City of Bremerton May 2021
2021 Sewer Rehabilitation CF-2
CONTRACT (Page 2 of 3)
ARTICLE 6. CONTRACT DOCUMENTS. The Contract Documents which comprise the entire agreement between CITY and CONTRACTOR concerning the WORK consist of this Contract and the following which are either attached or incorporated herein by reference:
-Notice Inviting Bids,
-Bidders Checklist,
-Bid Proposal including the Proposal Forms, Information Required of Bidder, Bid Bond, and allrequired certificates and affidavits,
-Performance Bond,
-Payment Bond,
-Standard Specifications,
-Amendments to the Standard Specifications,
-Appendices,
-Special Provisions,
-Contract Plans,
-Addenda numbers _____ to _____, inclusive.
-Change Orders which may be delivered or issued after Effective Date of the Agreement and arenot attached hereto.There are no Contract Documents other than those listed in this Article 6. The Contract Documents may only be amended by Change Order as provided in Section 1-04.4 of the Standard Specifications which may be modified by the Special Provisions.
ARTICLE 7. INDEMNIFICATION. The CONTRACTOR and CITY acknowledge and agree that they have negotiated the following in accordance with the requirements of RCW 4.24.115 and the CONTRACTOR specifically waives his immunity under industrial insurance under Title 51 RCW. To the fullest extent permitted by Laws and Regulations, the CONTRACTOR shall indemnify, defend, and hold harmless the CITY, ENGINEER, their consultants, sub consultants, and the officers, directors, employees, and agents of each and any of them, against and from any and all claims, injuries, damages, losses or suits, including all legal costs and attorney fees, all claims and liability arising under, by reason of, related, or incidental to the Contract Documents or any performance of the WORK, but not from the sole negligence or willful misconduct of the CITY and/or the ENGINEER as further defined in the Contract Documents. The provisions of this section shall survive the termination of the contract.
_____________________ Contractor Initial
CONTRACT
City of Bremerton May 2021
2021 Sewer Rehabilitation CF-3
(Page 3 of 3)
ARTICLE 8. ASSIGNMENT No assignment by a party hereto of any rights under or interests in the Contract Documents will be binding on another party hereto without the written consent of the party sought to be bound; and specifically but without limitation monies that may become due and monies that are due may not be assigned without such consent (except to the extent that the effect of this restriction may be limited by law), and unless specifically stated to the contrary in any written consent to an assignment, no assignment will release or discharge the assignor from any duty or responsibility under the Contract Documents. The CITY, in its sole discretion, may refuse to allow the CONTRACTOR to assign any or all of its duties, rights and/or responsibilities under the Agreement, except with regards to an assignment of funds for security purposes. In the case of an assignment for security purposes the CITY may condition its approval to the extent it deems necessary to assure that there will be adequate funds to complete the WORK and to pay a subcontractors and suppliers. CITY and CONTRACTOR each binds itself, its partners, successors, assigns and legal representatives to the other party hereto, its partners, successors, assigns and legal representatives in respect of all covenants, agreements and obligations contained in the Contract Documents. IN WITNESS WHEREOF, CITY and CONTRACTOR have caused this Agreement to be executed the day and year first above written. CITY : City of Bremerton CONTRACTOR
(Signature) (Signature) By Greg Wheeler, Mayor By (Printed name) (Printed name) [CORPORATE SEAL]
Attest Attest
Address for giving notices Address for giving notices
License No.
Approved as to Form: Agent for service of process: (Signature) City Attorney (Title)
Insituform Technologies, LLC
VICINITY MAP FOR 2021 SEWER REHABILITATION
2021 Sewer Rehabilitation
Fiscal Summary
June 2021
FISCAL SUMMARY
2021 SEWER REHABILITATION
The project 2021 Sewer Rehabilitation is budgeted in the Sewer Capital Improvement Plan
through item WW00003 - CIPP Rehabilitation of Sewers for $700,000. One bid was received,
from Insituform, which was opened on June 2, 2021. The bid was for $1,082,988.03. The
overall project estimate is increased to $1,200,000, as shown below.
COST ITEM AMOUNT
Construction (Insituform) $1,082,988
City Costs for Design and Bidding $24,252
City Inspection and CM (projected) $35,200
AIMS cleaning/video contract $57,970
TOTAL ESTIMATED PROJECT (rounded) $1,200,000
In order to fund the project, the budget will need to be increased from $700,000 to $1,200,000,
which is an increase of $500,000. The additional $500,000 will be allocated from the following
Sewer CIP line items.
Project ID and Title Amount
WW00017 – Asset Management Implementation $50,000
WW00042 – WWTP & Pump Station Improvement Program $100,000
TR00001 – E. 11th Street and Perry Avenue Reconstruction $350,000
TOTAL $500,000
AGENDA BILL
CITY OF BREMERTON
CITY COUNCIL
SUBJECT: Study Session Date: June 9, 2021
Utility Services Agreement with NAVFAC
NW for Puget Sound Naval Shipyard/Naval
Base Kitsap-Bremerton
COUNCIL MEETING Date: June 16, 2021
Department: PW&U
Presenter: Tom Knuckey
Phone: (360) 473-2376
SUMMARY:
The City has worked with the Navy to develop a successor contract to the ten-year utilities contract
for PSNS and NBK-Bremerton. The current contract expired 7/30/2018 and has been under interim
extensions which expire on August 2, 2021. The new ten-year contract term will begin with execution
and extend to 2031. The new contract is generally similar to the past contract, with highlights and
substantive changes outlined in the attached Council Summary.
ATTACHMENTS: (1) Council Summary Updated; (2) Summary of Negotiations; (3) Contract #
N44255-21-C-1004 COB contract number #4757
FISCAL IMPACTS (Include Budgeted Amount: Based on the assumed consumption rates listed in
the contract, revenue for the water utility is estimated at $2,190,638/yr., Wastewater revenue is
estimated at $2,632,687/yr., and Stormwater revenue is estimated at $57,488/yr. All rates are
subject to annual escalation during the life of the contract.
STUDY SESSION AGENDA: ☒ Limited Presentation ☐ Full Presentation
STUDY SESSION ACTION: ☐ Consent Agenda ☐ General Business ☐ Public Hearing
RECOMMENDED MOTION:
Move to approve the PSNS/NBK-Bremerton Utility Services Agreement between the City of
Bremerton and NAVFAC Northwest; and authorize the Mayor to finalize and execute the agreement
with substantially the same terms and conditions as presented.
COUNCIL ACTION: Approve Deny Table Continue No Action
Form Updated 01/02/2018
B4
Corrected Title/
Updated
COUNCIL SUMMARY
UTILITY SERVICE CONTRACT FOR NBK-BREMERTON
BACKGROUND
This Utility Service Agreement with the US Navy is for Water and Wastewater service
for NBK-Bremerton only. Separate agreements are in-place for Jackson Park, the Navy
Hospital, and other miscellaneous locations. Utility service agreements with the Navy
are executed in ten-year terms; the last agreement was executed in 2008 and expired
On July 31, 2018. Upon expiration of the contract, the Navy exercised its unilateral
option to continue service beyond the contract term. The current expiration date is
August 2, 2021. Until the new contract is executed, rates are frozen at 2018 levels. On
January 14, 2021, the Navy approved a claim from the City and paid $414,049 to
reimburse lost revenue from the frozen rates between August 1, 2018, and August 31,
2020. Following execution of this new contract, the City will submit a second claim to
compensate for lost revenue due to the frozen rates for the period of September 1, 2020
to the effective date of the new contract.
In 2017, the City engaged FCS Group to provide a cost-of-service study to establish the
base rates, and to assist in contract negotiations. Negotiations have been on-going and
concluded on July 10, 2020 with all technical issues associated with calculating cost-
based rates mutually agreed upon and resolved.
The FCS cost-of-service study used for these negotiations was the same methodology
established for the 2008 contract. Specifically, the principle is to calculate the
appropriate level of revenue that must be collected to recover costs, then calculate a
rate structure that equitably collects those revenues. The calculation , including
distribution between customer classes, is further explained in the “Summary of
Negotiations” document which is attached to this Agenda Bill.’
HIGHLIGHTS OF THE NEW CONTRACT
The new contract rate structure is based on the cost-of-service study presented in the
Summary of Negotiations. Highlights from the new contract are as follows:
The new ten-year contract term will begin as soon as executed and extend to 2031.
The new water service rates have a flat fee of $91,277 per month and variable rate of
$1.83/HCF, resulting in total anticipated annual revenue of $2,190,638 for 2021. In the
new contract, revenue is generated equally from both the flat fee and variable rates,
which is an improvement over the previous contract.
The new wastewater flat fee is $109,695/month and $4.70/HCF, resulting in total
anticipated annual revenue of $2,632,687 for 2021. Similar to Water, revenue
approximately equal from both the flat fee and variable rates.
Rate increases follow methodology established with the 2008 contract; specifically, rate
increases are tied directly to the weighted average of rate increases applied to all non-
Navy customers for Water and Wastewater, respectively.
Significant discussion entailed regarding the frozen rates after the contract expired, and
so the City and Navy have documented an agreement in principle that rate increases
should apply during any time gap between the termination of this new contract and
execution of a subsequent contract. The contract documentation additionally
memorializes the need to initiate negotiations early (2-years prior to contract
termination).
Impacts of Salinity from the Navy will be treated independently from this contract.
Similar to Salinity impacts, the City notified the Navy of a likely need to renegotiate rates
and cost of service when the State of Washington enacts new discharge limitation permit
requirements to reduce nutrient discharges to the Puget Sound.
City of Bremerton
Summary of U.S. Navy
Contract Negotiations
for Water and
Wastewater Service
FINAL REPORT
October 2020
Washington
7525 166th Avenue NE, Ste. D215
Redmond, WA 98052
425.867.1802
Oregon
4000 Kruse Way Pl., Bldg. 1, Ste 220
Lake Oswego, OR 97035
503.841.6543
Colorado
1320 Pearl St, Ste 120
Boulder, CO 80302
719.284.9168
www.fcsgroup.com
Firm Headquarters
Redmond Town Center
7525 166th Ave NE, Ste. D-215
Redmond, Washington 98052
Established 1988
Washington | 425.867.1802
Oregon | 503.841.6543
Colorado | 719.284.9168
October 7, 2020
Thomas Knuckey, P.E.
Director of Public Works and Utilities
100 Oyster Bay Ave. N.
Bremerton WA 98312
Subject: Summary of U.S. Puget Sound Naval Shipyard Contract Negotiations for Water and
Wastewater Service
Dear Mr. Knuckey:
The City of Bremerton (City) and U.S. Puget Sound Naval Shipyard (Navy ) entered a ten-year
contract to provide water and Wastewater service (Navy Contract N44255 -08-C-3005) on August 1,
2008. The contract was set to continue through July 31, 2018 and constitutes the basis for
development of the rates paid by the Navy during that contract term. Upon expiration of the contract,
t he Navy exercised its unilateral option to continue service beyond the contact term. A follow up cost
of service study is to be completed upon contract renewal to establish the base rates for the next
contract period. In addition, the extensive 2008 contract negotiations established a mutually
acceptable methodology to use at the time of future contract negotiations. To the extent possible, the
update used the methodology prescribed in the 2008 contract.
This report will summarize the cost of service study update used to establish the base year water and
wastewater service rates for the Navy under the new contract. Negotiations with the Navy were
completed on July 10, 2020 and all technical issues associated with calculating cost -based rates were
mutually agreed upon and resolved.
Sincerely ,
Angie Sanchez Virnoche
Principal
City of Bremerton October 2020
Summary of U.S. Navy Contract Negotiations for Water and Wastewater Service page i
www.fcsgroup.com
TABLE OF CONTENTS
Section I. Introduction ................................................................................................................................. 1
I.A. Rate Setting Principles and Methodology ........................................................................................................ 1
I.A.1. Revenue Requirement ............................................................................................................................... 1
I.A.2. Cost Allocation .......................................................................................................................................... 2
I.A.3. Rate Design .............................................................................................................................................. 2
Section II. Water COS Rate Study ............................................................................................................... 3
II.A. Asset Functional Allocation & Classification .................................................................................................... 3
II.B. Revenue Requirement ................................................................................................................................... 5
II.B.1. Operating and Maintenance ................................................................................................................... 5
II.B.2. Depreciation.......................................................................................................................................... 6
II.B.3. Return on Investment ............................................................................................................................ 6
II.C. Allocation Factors .......................................................................................................................................... 8
II.D. Navy Water Cost of Service ........................................................................................................................... 9
II.E. Water Rates................................................................................................................................................. 10
Section III. Wastewater COS Rate Study ................................................................................................ 11
III.A. Asset Functional Allocation & Classification .................................................................................................. 11
III.B. Revenue Requirement ................................................................................................................................. 13
III.B.1. Operating and Maintenance ................................................................................................................. 13
III.B.2. Depreciation........................................................................................................................................ 13
III.B.3. Return on Investment .......................................................................................................................... 14
III.C. Allocation Factors ........................................................................................................................................ 16
III.D. Navy Wastewater Cost of Service ................................................................................................................. 17
III.E. Wastewater Rates ........................................................................................................................................ 17
Section IV. Other Key Issues .................................................................................................................. 18
IV.A. Salinity Surcharge ........................................................................................................................................ 18
IV.B. Initiation of Negotiations ............................................................................................................................... 18
IV.C. Future Adjustment for Water and Wastewater Rates ..................................................................................... 18
City of Bremerton October 2020
Summary of U.S. Navy Contract Negotiations for Water and Wastewater Service page ii
www.fcsgroup.com
IV.D. Rate Adjustments Beyond Contract Term ..................................................................................................... 19
IV.E. Lump Sum Payment ..................................................................................................................................... 19
IV.F. Re-Opener Clause ....................................................................................................................................... 19
Technical Appendix – Water .......................................................................................................................... 20
Technical Appendix – Wastewater ................................................................................................................. 21
City of Bremerton October 2020
Summary of U.S. Navy Contract Negotiations for Water and Wastewater Service page iii
www.fcsgroup.com
LIST OF EXHIBITS
Exhibit 1: Water Asset Functionalization ............................................................................................................. 3
Exhibit 2: Water Asset Cost Classification ........................................................................................................... 4
Exhibit 3: Classification of Water Operating & Maintenance Costs ..................................................................... 6
Exhibit 4: Classification of Water System Depreciation ....................................................................................... 6
Exhibit 5: Classification of Water System Net Rate Base .................................................................................... 7
Exhibit 6: Wastewater Asset Functionalization .................................................................................................. 11
Exhibit 7: Wastewater Asset Cost Classification ............................................................................................... 12
Exhibit 8: Classification of Wastewater Operating & Maintenance Costs .......................................................... 13
Exhibit 9: Classification of Wastewater System Depreciation ............................................................................ 14
Exhibit 10: Classification of Wastewater System Net Rate Base ......................................................................... 15
LIST OF TABLES
Table 1: Comparison of Cash Basis and Utility Basis Methodology ...................................................... 2
Table 2: Summary of Navy Water Cost of Service ............................................................................................. 9
Table 3: Summary of Navy Water Fixed and Variable Charges ....................................................................... 10
Table 4: Summary of Navy Wastewater Cost of Service .................................................................................. 17
Table 5: Summary of Navy Wastewater Fixed and Variable Charges ............................................................. 17
City of Bremerton October 2020
Summary of U.S. Navy Contract Negotiations for Water and Wastewater Service page 1
www.fcsgroup.com
Section I. INTRODUCTION
The City of Bremerton (City) retained FCS GROUP to develop a follow -up cost of service (COS)
rate study in advance of the upcoming U.S. Navy (Navy) water and wastewater service contract
renewal. The cost of service study was prepared using the existing 2008 contract methodology as the
basis for establishing cost -based rates for the Navy.
I.A. RATE SETTING PRINCIPLES AND METHODOLOGY
The methods used to establish user rates are based on principles that are generally accepted and
widely followed throughout the industry. These principles are designed to produce rates that
equitably recover costs from customers by calculating the appropriate lev el of revenue to be collected
from ratepayers and establishing a rate structure to equitably collect those revenues.
The primary analyses of the cost of service rate study are listed below:
⚫ Revenue Requirement . This analysis calculates the total revenue requirement to fully fund each
utility on a standalone basis .
⚫ Cost Allocation . This analysis equitably distributes the revenue requirement among c ustomer
groups based on their proportional demand and use of each system.
⚫ Rate Design . This analysis develops rate structures that generate sufficient revenue to equitably
recover each system’s revenue requirement.
I.A.1. Revenue Requirement
There are two main generally accepted methods for calculating utility revenue requirements – “cash
basis” and “utility basis.” The “cash basis” is used most commonly to set revenue requirements for
retail customers as it parallels the budgeting process of most municipalities , with the objective being
that the revenues must be sufficient to recover all cash requirements of the utility. The “utility basis”
approach is commonly used for contract customers as it recognizes unique customer service
requirements a nd allows for the separation of eligible facilities required to provide service. This
approach recovers applicable operating and maintenance (O&M) costs, plus a capital cost recovery
based on the original cost of capital investment committed to the custome r’s service. The “capital
cost recovery” includes two components: depreciation of eligible fixed asset value as useful life is
consumed and a rate of return on the net investment or book value of eligible assets in service to the
customer. With the utility basis, debt service costs are not part of the revenue requirement; instead,
the capital cost is recovered over time by depreciation and the return on investment. Table 1
summarizes the two methods. The analysis completed for the City maintains parity betw een the cash
basis used for retail customer rate -setting and the utility basis method used for the Navy.
City of Bremerton October 2020
Summary of U.S. Navy Contract Negotiations for Water and Wastewater Service page 2
www.fcsgroup.com
Table 1: Comparison of Cash Basis and Utility Basis Methodology
Cash Basis Utility Basis
+ O&M Expenses + O&M Expenses
+ Taxes/Transfer Payments + Taxes/Transfer Payments
+ Rate Financed Capital + Depreciation Expense
+ Debt Service (Principal + Interest) + Return on Investment
= Total Revenue Requirement = Total Revenue Requirement
I.A.2. Cost Allocation
The purpose of cost allocation is to provide a rational basis for distributing the full costs of each
utility service to customers or customer groups in proportion to the demands they place on the
system. The key analytical steps of the cost allocation process are as follows:
⚫ Asset Functionalization . The assets of each system are assigned to major functions of service :
» Water: s ource of supply, treatment, storage, pumping, transmission, distribution, hydrants,
meters, services and general plant
» Wastewater: treatment, collection, pumping and general plant
⚫ Cost Classification. Within each asset function, costs are separated into cost categories that can
be allocated among customers by a measurable cost -defining service characteristic. Water and
wastewater classification categories are listed below. Costs wholly attributed to specific
customers can be directly assigned to those customer s or customer groups :
» Water: commodity (average water demands), capacity (peak water demands), customer
(billing and customer service) meters & services (reading and servicing meters), fire
protection and direct assignment
» Wastewater: flow (sewer collection and plant inflow ), strength (influent sewage stren gth),
customer and direct assignment
⚫ Cost Allocation . Cost categories are then allocated among customers or customer groups based
on their unique service demands, as defined by system planning documents, industry standards,
and recorded user history (e.g. billing data and/or service requirement requests ). The results
identify the cost to provide service to each identified customer or customer group.
I.A.3. Rate Design
The principal objective of rate design is to develop a rate structure that generate s sufficient revenues
for the system which are reasonably commensurate with the cost of providing service. Fixed and
variable charges are designed to recover the cost of service for each customer or customer group, as
determined by the revenue requirement a nd cost allocation process. For equity to be maintained,
economic theory suggest that a price of a commodity should roughly equal its cost. Through
refinement of cost allocation techniques and tailored rate designs customers are provided a more
accurate price signal of what the service costs to produce and deliver .
City of Bremerton October 2020
Summary of U.S. Navy Contract Negotiations for Water and Wastewater Service page 3
www.fcsgroup.com
Section II. WATER COS RATE STUDY
The City of Bremerton provides potable water service to the Navy at three 10 -inch meter delivery
points located at 1 st and Pacific, Charleston Gate and 1 st and Rainer Avenue. The Navy has updated
its service requirement requests as part of this contract update to include average daily demand of
1.20 million gallons per day (MGD) and a max day demand of 3.5 0 MGD. The Navy has also
indicated that by 2028 the average daily demand and max day demand requirements are expected to
increase to 1.32 MGD and 3.85 MGD, respectively. The Navy’s w ater service requirements specify a
maximum fire flow demand of 7,750 gallons per minute (gpm) for a duration of four hours. The
requirements as stated define the water service requirements of the Navy and are used to allocate
costs as part of the water cost of service rate study update.
II.A. ASSET FUNCTIONAL ALLOCATION & CLASSIFICATION
The City’s assets or “plant” in service are reviewed to identify what infrastructure assets are in use
and relate d to providing water service. The first step is to organize assets into functions of service ,
which is largely accomplished by a uniform system of accounts. As stated previously, the water
utility functions of service include source of supply, treatment, storage, pumping, transmission,
distribution, hydrants, meters, services and general plant. Exhibit 1 summarizes the original asset
cost and accumulated depreciation allocated to each function of serv ice.
Exhibit 1: Water Asset Functionalization
The functions of service are then allocated to functional cost categories based on documented system
requirements, including engineering criteria, (e.g. average demand, peak demand) and industry
standard practices based on the relationship of eac h function of asset to their use of the system.
Assets are classified into cost categories that can be allocated among customers or customer groups
according to known or assumed cost “causation”. The cost classification categorie s for the water
system include:
⚫ Commodity costs relate to average annual water demands.
Function of Service Original Cost Accumulated
Depreciation Net Asset Value
Source of Supply 7,648,781$ 4,337,991$ 3,310,790$
Treatment 4,622,460 939,089 3,683,371
Storage 6,925,417 3,736,797 3,188,620
Transmission 2,217,633 710,388 1,507,245
Pumping 4,872,084 2,233,044 2,639,041
Distribution
Mains 2"-6"5,051,160 2,542,144 2,509,015
Mains 8"-12"21,798,963 7,118,687 14,680,276
Mains 16" - 36"12,319,647 4,350,827 7,968,820
Hydrants 2,689,288 1,036,451 1,652,837
Services 3,909,232 1,893,102 2,016,130
Fire Services 382,021 175,587 206,434
Meters 3,008,649 1,031,402 1,977,247
General Plant 18,996,429 8,497,641 10,498,788
Total Assets 94,441,765$ 38,603,151$ 55,838,614$
City of Bremerton October 2020
Summary of U.S. Navy Contract Negotiations for Water and Wastewater Service page 4
www.fcsgroup.com
⚫ Capacity costs relate to meeting peak water demand requirements.
⚫ Customer costs are associated with establishing, maintaining and serving water customers and
include administrative, billin g and customer service costs.
⚫ Meters & Services costs relate to installation, maintenance and repair of meters and services.
⚫ Fire Protection costs relate to the ability of the system to provide adequate capacity and water
flo w corresponding to minimum fire safety standards .
Over 2,000 system asset s as of year-end 2016 are grouped by major function of service. The major
functions are then classified to the major c ost categories based on the approach used in the 2008
Navy Contract, updated when appropriate to adhere to current industry standard practices. Exhibit 2
summarizes the assumptions used to classify both original asset cost and accumulated depreciation .
Exhibit 2: Water Asset Cost Classification
The approach used to assign each function of service to the cost categories is as follows:
⚫ Source of supply is allocated based on the ratio of recorded 2017 average day demand of 5.86
million gallons per day (MGD) to recorded 2017 peak day demand of 14.10 MGD.
Result – 42% commodity and 58% capacity
⚫ Treatment is allocated 100 percent to commodity or average water use.
⚫ Storage is allocated based on the City’s fire flow storage requirement (4,000 gallons per minute
for 240 minutes) identified in Table 8 -5 of the 2012 Water System Plan (WSP) compared to the
total combined storage capacity of the Main System and West 517 Zone system (33.20 million
gallons) identified in Chapter 1.5.3 of the WSP.
Result – 97% capacity and 3% to fire
⚫ Transmission is allocated 100 percent to capacity or peak use .
⚫ Pumping is allocated 100 percent to capacity or peak use .
⚫ Distribution mains are allocated among three cost categories – customer, capacity and fire. The
customer allocation is based on the share of total d istribution replacement c osts made up by the
Source of Supply 42%58%
Treatment 100%
Storage 97%3%
Transmission 100%
Pumping 100%
Distribution
Mains 2"-6"49%27%24%
Mains 8"-12"49%27%24%
Mains 16" - 36"49%27%24%
Hydrants 100%
Services 100%
Fire Services 100%
Meters 100%
General Plant
% Asset Classification 10.38%46.34%3.28%12.21%1.81%9.17%15.20%1.61%
As All Other Plant
Fire w/o NavyCustomerCustomer w/o
Navy FireMeters &
ServicesFunctionCapacity
(Peak Use)
Commodity
(Average Use)
Capacity w/o
Navy
City of Bremerton October 2020
Summary of U.S. Navy Contract Negotiations for Water and Wastewater Service page 5
www.fcsgroup.com
cost of replacing the entire system with 2 -inch diameter pipe, recognizing that at a minimum, a
system of 2 -inch pipe is required to provide average water demands. The capacity allocation is
based on the total share of distribution repl acement costs if all 8 -inch and larger pipe was
replaced with 6 -inch pipe, recognizing that 8 -inch and larger distribution pipe has been upsized
to meet fire flow requirements . The remaining share of distribution costs are allocated to fire
protection. The City’s distribution main analysis separated mains into 2” – 6”; 8” – 12” and 16” –
36”. In keeping with the 2008 contract the following classification approach is applied.
» Mains 2”-6” are not allocated to the Navy as the prior Agreement recognized that the Navy is
served through three 10” meters and does not benefit from any pipe smaller than 8 -inches.
» Mains 8” and greater are eligible for allocation to the Navy .
Result – 27% customer, 49% capacity and 24% fire of eligible distribution main assets
⚫ Hydrants and fire services are allocated 100 percent to fire .
⚫ Services and meters are allocated 100 percent to meters & services .
The resulting total asset allocation is referred to as the “% asset classification” and is used to classify
operating costs which cannot be more specifically assigned to one or more cost categories.
II.B. REVENUE REQUIREMENT
The water system revenue requirement is developed using the utility basis rate-setting approach. This
approach recovers operating an d maintenance costs, plus a capital cost recovery based on the original
cost of capital investment committed to the customer’s service. The “capital cost recovery” includes
two components: depreciation of eligible fixed asset value as useful life is consumed and a return on
investment to offset debt interest costs an d provide owner equity return.
II.B.1. Operating and Maintenance
Water system operating and maintenance costs are based on the 2020 detailed line -item fund 401
Water Utility expenditure budget. Expenditures are categorized based on the City’s budget
departments and include: administration, water resources, water distribution, forestry, customer
service and taxes. Similar to the classification of the City’s asset functions, c ommon practice in the
allocation of O&M is to assign expenses to the cost category or categories that primarily drive each
line item or budgetary grouping . The following summarizes the key O&M allocation assumptions:
⚫ Water Administration is allocated based on the % asset classification .
⚫ Water Resources is allocated based on the allocation of source of supply assets .
⚫ Natural gas/electricity costs are allocated 100 percent to commodity or total average water use.
⚫ Water Distribution is allocated based on the % asset classification .
⚫ Forestry is allocated based on the allocation of source of supply assets.
⚫ Customer Service is allocated 100 percent to customer.
⚫ Taxes are allocated 100 percent to the revenue category, which is used to allocate costs based on
each customer or customer group’s share of total rate revenue.
Exhibit 3 summarizes the assumptions used to classify the water utility’s operating costs.
City of Bremerton October 2020
Summary of U.S. Navy Contract Negotiations for Water and Wastewater Service page 6
www.fcsgroup.com
Exhibit 3: Classification of Water Operating & Maintenance Costs
With O&M costs classified into cost categories , allocation factors are applied to each cost category
that will ultimately determine the Navy allocated portion of O&M expenses. It is important to note
that as a result of negotiations, the agreed upon allocation factor applied to the capacity portion of
O&M costs is based on the Navy’s actual recorded peak water demands , rather than the maximum
day demand service requirement .
II.B.2. Depreciation
Depreciation is the recovery of the original cost of system assets on an annual basis over the life of
the assets. It is a non -cash expense intended to recognize the consumption of utility assets over their
useful lives. Depreciation is calculated using the straight -line method on the total system assets ,
excluding assets contributed by developers or funded by other outside sources. This method takes the
value of an asset and reduces it uniformly over each period until it reaches the end of its useful life.
The utility basis methodology includes depreciation expense as a source of capital funding that can
partially offset the cost s of system repair, replacement or principal payments on outstanding debt.
Exhibit 4: Classification of Water System Depreciation
It is important to note that as a result of negotiations, the capacity portion of water system
depreciation is allocated to the Navy based on reserved peak demand capacity (the maximum day
demand service requirement). The depreciation component represents the fixed infrastructure
required to deliver the stated c apacity needs of the customer , which are not impacted by annual
variations in water use .
II.B.3. Return on Investment
Return on investment is intended to provide a reasonable return to the City’s customers on the
investment that they have made in facilities provi ding service. As the owner of the water system, the
City has raised the capital necessary to pay for the infrastructure providing service. The utility basis
rate-setting approach therefore allows the City to earn compensation in the form of a return on
investment charged to outside city and contract customers . Return for a public utility is used as a
source of funds to meet outstanding debt obligations and for reinvestment in the system.
Taxes (State/City)100.00%
Administration (As Plant)10.38%46.34%3.28%12.21%1.81%9.17%15.20%1.61%
Water Resources (As Supply)42.00%58.00%
Natural Gas/Electricity 100.00%
Water Distribution (As Plant)10.38%46.34%3.28%12.21%1.81%9.17%15.20%1.61%
Natural Gas/Electricity 100.00%
Forestry (As Supply)42.00%58.00%
Electricity 100.00%
Customer Service (All Customer)100.00%
Small Tools, Equip, Furn 100.00%
% Classification 19.82%36.10%1.30%7.79%0.72%3.65%6.04%0.64%23.94%
Classification of O&M Commodity
(Average Use)
Capacity
(Peak Use)
Capacity w/o
Navy RevenueCustomerCustomer w/o
Navy
Meters &
Services Fire Fire w/o Navy
% Classification 10.38%46.34%3.28%12.21%1.81%9.17%15.20%1.61%0.00%
RevenueCustomerCustomer w/o
Navy
Meters &
Services Fire Fire w/o NavyClassification of Depreciation Commodity
(Average Use)
Capacity
(Peak Use)
Capacity w/o
Navy
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The return on i nvestment component of the cost of service is determined by multiplying the rate base
allocated to each customer or customer group by an agreed upon rate of return.
II.B.3.a Rate Base
Rate base is determined by identifying the value of system assets used by the ut ility in providing
service , adding cash working capital and making appropriate deductions for contributed assets and
accumulated depreciation . The detailed asset values, accumulated depreciation and contributions
were based on City asset records as of year-end 2016.
Cash working capital has three components, and they are allocated as described below:
⚫ One-eighth of O&M expen ditures is allocated based on the overall allocation of O&M.
⚫ Prepayments are allocated based on the overall allocation of O&M.
⚫ Inventories are allocated as plant -in-service.
O&M expenditures are detailed in the City’ 2020 budget, while prepayments and inventories c ome
from the City’s 2017 comprehensive annual financial report.
For the purpose of establishing a fair return for the City on t heir rate base, it is inappropriate to
include assets that the City did not pay for. Contributions in aid of construction , net of accumulated
depreciation, are subtracted from the rate base.
Prior to 2008 a contract had segregated O&M payments from capita l payments. It was acknowledged
in the 2008 Agreement that these payments , referred to then as “net Navy capital charges”, were
simply the equivalent of a rate -funded capital payment and not a “true” contribution in aid of
construction. Therefore, it was a greed in 2008 that these charges would be removed from the total
value of contributions . This update continues t o use the Agreement methodology, amortizing these
charges at 2.44% per year until the charges have been fully amortized.
The net rate base calculation is total water plant -in-service, plus cash working capital, less
accumulated depreciation and net contributions in aid of construction. Net rate base is multiplied by
the agreed upon rate of return to determine the total return on investment.
Exhibit 5: Classification of Water System Net Rate Base
It is important to note that as a result of negotiations, the capacity portion of water net rate base is
allocated to the Navy based on reserved peak demand capacity. Similar to the depreciation
component, rat e base represents fix ed infrastructure required to deliver the stated capacity needs of
the customer , which are not impacted by annual variations in water use .
II.B.3.b Rate of Return
The 2008 Agreement establishes the rate of return as the cost of debt plus a risk premium. Specific
conditional tests assure that the resulting rate of return from the formula does not create or lead to
unintended consequences. The current agreement maintains these conditional tests.
“The rate of return allowed under this contract shall be the City’s cost of debt plus a risk
premium. The rate of return will be reviewed in any cost of service study prepared by the
City for its utilities throughout the life of this contract. The rate of return shall meet the
following tests:
% Classification 11.41%44.44%2.67%13.38%1.47%8.68%16.08%1.31%0.56%
RevenueCustomerCustomer w/o
Navy
Meters &
Services Fire Fire w/o NavyClassification of Rate Base Commodity
(Average Use)
Capacity
(Peak Use)
Capacity w/o
Navy
City of Bremerton October 2020
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1. It shall be the greater of:
a) The City’s cost of embedded debt plus x%, or
b) The City’s current Cost of borrowing plus x%
2. It shall always be greater than or equal to the rate of return for in-City retail
customers (owner customers) but less than or equal to the rate of return for
outside City customers.
3. It shall always be greater than or equal to zero
The City’s cost of borrowing shall be the numerical (simple) average of at least three rece nt
debt issues (within the previous 90 days if possible) in the marketplace for municipal entities
with simi lar terms and credit ratings. The City’s “cost of embedded debt” shall be the
weighted average of all non -subsidized outstanding debt for the combin e utilities. These
indexes shall be submitted to the Navy for review and comment prior to use in a future COSA
prepared by the City.”
During the negotiation process, the risk premium was a topic of considerable discussion. This value
has ranged historic ally from 3.5% to the current 2008 Agreement of 2.5%. The Navy ’s position is
that they are a low-risk customer , and they proposed a lower rate during negotiations. In contrast the
City believes the Navy to be a high -risk customer , with financial harm direc tly experienced by the
City’s utilities from a direct loss of water revenue due to the significant reduction in water use
beginning in 2012 with no explanation or notice , to the inability to collect revenue on par with
increased costs due to the freezing of rate increases during contract negotiations.
As a result of these negotiations, the City and Navy agreed to a 1.5% risk premium to be added to the
City’s cost of debt. The City’s cost of embedded debt is 3.79%, which is greater than the cost of
borro wing of 3.42%. Adding the City’s cost of debt to the 1.5% risk premium results in a total rate of
return equal to 5.29%.
II.C. ALLOCATION FACTORS
The allocation factors used to allocate each cost category to customers under the methodology
previously discussed a re detailed in the Water Technical Appendix . Allocation factors are used to
allocate O&M, depreciation and net rate base to all water customers including the Navy. Allocation
factors divide cost categories among customer s based on each customer’s share of a measurable cost -
defining service characteristic. The following allocation factors were used to equitably distribute
water costs to customers :
⚫ Commodity costs are allocated based on each customer’s share of t otal system annual water use.
For the Navy, 2019 annual water use of 599,332 hundred cubic fee t (CCF) constitutes a 20.88%
share of total water use.
⚫ Actual Capacity costs are allocated based on the share of each customer’s measured peak month
use to the total system peak month. Navy peak month use for 2019 was identified as 1.82 million
gallons per day (MGD) or 15.15% of 2019 system peak month use. The actual capacity allocation
is used to allocate the capacity portion of O&M costs to the Navy.
⚫ Reserved Capacity costs are allocated based on the peak capacity reserved to deliver maximum
service requirements. This allocation factor recognizes that the system is designed and sized to
meet peak capacity needs that are not impacted by annual variation in use . The 2028 system peak
day of 16.03 MGD is sourced from Table 2-5 of the 2012 WSP. The Navy’s stated 2028
City of Bremerton October 2020
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maximum day requirements indicate a 3.85 MGD requirement or 22.58% of the system total. The
reserved capacity allocation is used to allocate the capac ity portion of depreciation and rate base
to the Navy.
⚫ Customer costs are allocated based on measures related to the n umber of customer accounts
served by the system. Three separate customer allocation factors are recognized – “actual
customer ” bases the allocation on the number of billing units or customer meters served by the
system. Two other customer allocation factors – “weighted” and “meters & services ” – attempt to
reflect the disproportionate costs associated with serving water users with large meters. The
weighted customer factor is for accounting costs and recognizes the additional time that it may
take to read a meter and process a bill for a larger, more complex customer. The meters &
services allocation factor reflects the difference in costs associated with servicing, maintaining
and replacing larger meter s. With only three meters, the Navy constitutes a small portion of
customer costs and they are allocated 0.49% or less for each customer allocation factor .
⚫ Fire Protection costs are allocated based on the fire flow requirement for each customer or
customer class. The factor considers both fire flow in gallons per minute (gpm) and duration.
The Navy’s service requirements indicate a maximum requirement of 7,750 gpm for a duration of
240 minutes, representing 0.01% of total system fire requirements.
⚫ Revenue costs are allocate d based on each customer or customer group’s share of total system
rate revenue. 2019 Navy billed revenue ($1,831,708) represents 15.20% of total system revenue.
The classified O&M, depreciation and rate base are allocated based on the allocation factors
identified above to determine the total allocated costs by customer or customer group.
II.D. NAVY WATER COST OF SERVICE
The Navy cost of service is calculated by bringing together the allocable O&M expenses,
depreciation and return on investment. Table 2 summarizes the Navy water cost of service.
Table 2 : Summary of Navy Water Cost of Service
Based on the mutually agreed upon methodology, the updated Navy water cost of service to begin the
new contract period is $2.19 million. The detailed exhibits can be found in the Water Technical
Appendix.
O&M Expenses 1,697,902$
Depreciation 271,827
Total O&M plus Depreciation 1,969,729
Allocated Rate Base 4,176,757$
% Rate of Return 5.29%
Return On Investment 220,909
Total Navy Cost of Service $ 2,190,638
Cost Components Total Navy Water Costs
City of Bremerton October 2020
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II.E. W ATER RATES
The cost of service for the Navy establishes the to tal annual revenue to be collected for water service.
The revenue is collected through a rate structure composed of a fixed charge and a variable charge.
The previous Agreement recovered the water cost of service based on a 30% fixed, 70% variable
split. During the negotiations, the City and Navy agreed to shift more costs to the fixed component
for revenue stability and to bring the water rate structure in line with the sewer rates. The agreed
upon methodology collects the cost of service 50% from the fixed charge and 50% from the variable
charge. The resulting rates are a fixed monthly charge of $91,277 and a variable charge of $1.83 per
CCF of water use.
Table 3: Summary of Navy Water Fixed and Variable Charges
Fixed Monthly Charges 1,095,319$ 91,277$
Variable Charge per CCF 1,095,319 599,332 1.83$
Total $ 2,190,638
[1] Split 50% fixed charge and 50% variable charge
[2] CCF = hundred cubic feet. Represents 2019 Navy usage
Calculated
Charge levelCalculated Water Charges Target
Revenue [1]
Billing Units
CCF [2]
City of Bremerton October 2020
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Section III. WASTEWATER COS RATE STUDY
The City of Bremerton provides sewage disposal and treatment to the Navy . Sewage flow volume is
measure d through City of Bremerton meters located at 1 st street and 416 S. Cambrian. The Navy has
updated its wastewater service requirement requests for each metering point, including:
⚫ 1st street not to exceed daily average flow of 300 gallons per minute (gpm) or 0.43 MGD and a
peak discharge of 500 gpm
⚫ Cambrian not to exceed daily average flow of 1,800 gallons per minute (gpm) or 2.59 MGD and
a peak discharge of 2,500 gpm
The total requirements for the combined metering points are a not to exceed daily average flow of
3.02 MGD and a peak discharge of 3,000 gpm . The requirements as stated define the wastewater
service requirements of the Navy and will be used to allocate costs as part of the wastewater cost of
service rate study update.
III.A. ASSET FUNCTIONAL ALLOCATION & CLASSIFICATION
The City’s wastewater assets in service are reviewed to identify what infra structure assets are in use
and relate d to providing wastewater service. The first step is to organize assets into functions of
service , which is largely accomplished by a uniform system of accounts. As stated previously, the
wastewater utility functions o f service include treatment, collection, pumping and general plant.
Exhibit 6 summarizes the original asset cost and accumulated depreciation allocated to each function
of service.
Exhibit 6: Wastewater Asset Functionalization
The functions of service are then allo cated to functional cost categories based on documented system
requirements, including engineering criteria, (e.g. average d aily flow, peak flow) and industry
standard practices based on the relationship of eac h function of asset to their use of the system.
Assets are classified into cost categories that can be allocated among customers or customer groups
according to known or assumed cost “causation”. The cost classification categories for the
wastewater system include:
⚫ Flow costs relate to the collection of customer sewer flows to be treated at the Wastewater
Treatment Plant (WWTP).
⚫ Strength costs reflect the strength of sewage processed, in terms of biochemical oxygen demand
(BOD) and total suspended solids (TSS). BOD is the parameter used to c haracterize the organic
strength of sewage. TSS is the parameter that measures the amount of particles suspended in
water that will not pass through a filter and require treatment.
Function of Service Original Cost Accumulated
Depreciation Net Asset Value
Collection 51,549,403$ 18,271,241$ 33,278,162$
Collection Laterals 3,018,737 1,523,219 1,495,519
Treatment 47,249,172 26,751,478 20,497,694
Pumping 25,096,890 11,458,327 13,638,563
General Plant 4,334,537 1,861,367 2,473,170
Total Assets 131,248,739$ 59,865,631$ 71,383,108$
City of Bremerton October 2020
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⚫ Customer costs are associated with establishing, maintaining, and serving wastewater customers
and include administrative, billin g and customer service costs.
⚫ Direct Assignment is used to categorize assets that may be clearly identified or associated with a
specific customer or group of customers.
Over 1,600 system assets as of year-end 2016 are grouped by major function of service. The major
functions are then classified to the major cost categories based on the approach used in the 2008
Navy Contract, updated when appropriate to adhere to current industry standard practices. Exhibit 7
summarizes the assumptions used to classify both original asset cost and accumulated depreciation .
Exhibit 7: Wastewater Asset Cost Classification
The approach used to assign each function of service to the cost categories is as follows:
⚫ Collection is allocated 100 percent to flow with Navy.
⚫ Collection laterals are allocated 100 percent to flow without Navy. During 2008 contract
negotiations both parties agreed that the Navy does not benefit from collection laterals and
should not be allo cated any of these assets.
Result – no allocation to Navy
⚫ Treatment is allocated using two separate methodologies. The first, treatment (capacity)
maintains the current contract classification of 50 percent treatment without Navy, 15.5 percent
BOD without Navy, 15 percent TSS without Navy and a 19.5 percent direct allocation to the
Navy. The direct allocation to the Navy is traced back to the 1989 Navy Cost Share of the sewer
treatment plant representing the Navy’s reserved portion of WWTP capacity. This allocation is
validated by the updated service requirements requested by the Navy , which total 3.02 MGD or
19.5 percent of the total WWTP West Capacity of 15.5 MGD.
A second treatment allocation, treatment (a ctual), was requested by the Navy for use in allocating
costs related to annual sewer flows, rather than reserved capacity. The treatment (actual) direct
allocation to the Navy, 12.1 percent, is based on the share of total flow treated at the WWTP
West in 2019 (4.73 MGD) constituted by the Navy’s 2019 flow (0.57 MGD).
Result – 19.5% direct treatment plant allocation to the Navy for capacity related allocations,
12.1% direct treatment plant allocation to the Navy for actual flow related allocations
⚫ Pumping is allocated 100 percent to flow with Navy.
The resulting total asset allocation is referred to as the “% asset classification ” and is used to classify
operating costs which cannot be more specifically assigned to one or more cost categories.
Collection 100.0%
Collection Laterals 100.0%
Treatment (Capacity)50.0%15.5%15.0%19.5%
Treatment (Actual)54.6%16.9%16.4%12.1%
Pumping 100.0%
General Plant
% Asset Classification (Capacity)60.39%20.99%0.00%5.77%0.00%5.58%7.26%
% Asset Classification (Actual)60.39%22.70%0.00%6.30%0.00%6.10%4.52%
As All Other Plant
TSS w/o Navy Direct NavyFunctionFlow w/ Navy Flow w/o Navy BOD w/ Navy BOD w/o Navy TSS w/ Navy
City of Bremerton October 2020
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III.B. REVENUE REQUIR EMENT
The wastewater system revenue requirement is developed using the utility basis rate -setting
approach. This approach recovers applicable operating and maintenance costs, plus a capital cost
recovery based on the original cost of capital investment com mitted to the customer’s service. The
“capital cost recovery” includes two components: depreciation of eligible fixed asset value as useful
life is consumed and a return on investment to offset debt interest costs an d provide owner equity
return.
III.B.1. Operating and Maintenance
Wastewater system O&M is based on the 2020 detailed line item fund 4 51 Wastewater Utility
expenditure budget. Expenditures are categorized based on the City’s budget departments and
include: administration, sewer system, wastewater treatment plant, customer service and taxes.
Similar to the classification of the City’s asset functions, common practice in the allocation of O&M
is to allocate expenses to the cost category or categories that primarily drive each line item or
budgetary grouping. The following summarizes the key O&M allocation assumptions:
⚫ Sewer Administration is allocated based on the “% actual” asset classification allocation.
⚫ Sewer System is allocated based on the “% actual” asset classification .
⚫ Wastewater Treatment Plant is allocated based on the “% actual” asset classification .
⚫ Electricity as 100 percent to flow with Navy.
⚫ Customer Service wages and benefits, as well as postage costs, are allocated 100 percent to
customer , with all other customer service costs all ocated as “% actual” asset classification .
Exhibit 8 summarizes the assumptions used to classify the wastewater utility’s operating costs.
Exhibit 8: Classification of Wastewater Operating & Maintenance Costs
With O&M classified into cost categories , allocation factors are applied to each cost category that
will ultimately determine the Navy allocated portion of O&M expenses. It is important to note that as
a result of negotiations the agreed upon allocation factor applied to the flow portion of O&M costs is
based on the Navy’s actual recorded sewer flow , rather than the not to exceed average daily flow
service requirement .
III.B.2. Depreciation
Depreciation is the recovery of the original cost of system assets on an annual basis over th e life of
the assets. It is a non -cash expense intended to recognize the consumption of utility assets over their
Taxes (State/City)100.00%
Administration (As Plant)60.39%22.70%6.30%6.10%4.52%
Sewer System (As Plant)60.39%22.70%6.30%6.10%4.52%
WWTP (As Plant)60.39%22.70%6.30%6.10%4.52%
Electricity 100.00%
Customer Service (All Customer)100.00%
Other (i.e. supplies, equipment)60.39%22.70%6.30%6.10%0.00%0.00%4.52%
% Classification 43.53%14.46%0.00%4.01%0.00%3.88%1.75%29.48%2.88%
Direct NavyBOD w/o Navy TSS w/ Navy TSS w/o Navy Customer RevenueClassification of O&M Flow w/ Navy Flow w/o Navy BOD w/ Navy
City of Bremerton October 2020
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useful lives. Depreciation is calculated using the straight -line method on the total system assets,
excluding assets contributed by developers or funded by other outside sources . This method takes the
value of an asset and reduces it uniformly over each period until it reaches the end of its useful life.
The utility basis methodology includes depreciation expense as a source of capital funding that can
partially offset the cost of system repair, replacement or principal payments on outstanding debt.
Exhibit 9: Classification of Wastewater System Depreciation
It is important to note that as a result of negotiations, the agreed upon allocation factor s applied to
depreciation are based on the plant -in-service allocation using reserved capacity for treatment assets .
The depreciation component represents fix ed infrastructure required to deliver the stated capacity
needs of the customer, which are not impacted by annual variation in sewer flow .
III.B.3. Return on Investment
Return on investment is intended to provide a reasonable return to the City’s customers on the
investment that they have made in facilities providing service. As the owner of the wastewater
system, the City has raised the capital necessary to pay for the infrastructure providing service. The
utility basis rate -setting approach therefore allows the City to earn compensation in the form of a
return on investment charged to outside city and contract cust omers. Return for a public utility is
used as a source of funds to meet outstanding debt obligations and for reinvestment in the system.
The return on investment component of the cost of service is determined by multiplying the rate base
allocated to ea ch customer or customer group by an agreed upon rate of return.
III.B.3.a Rate Base
Rate base is determined by identifying the value of system assets used by the utility in providing
service , adding cash working capital and making appropriate deductions for contrib uted assets and
accumulated depreciation . The detailed asset values, accumulated depreciation and contributions are
based on City asset records as of year -end 2016.
Cash working capital has three components, and they are allocated as described below:
⚫ One-eighth of O&M expenditures is allocated based on the overall allocation of O&M.
⚫ Prepayments are allocated based on the overall allocation of O&M.
⚫ Inventories are allocated as plant -in-service.
O&M expenditures are detailed in the City’ 2020 budget, whi le prepayments and inventories come
from the City’s 2017 comprehensive annual financial report.
For the purpose of establishing a fair return for the City on their rate base, it is inappropriate to
include assets that the City did not pay for. Contribution s in aid of construction , net of accumulated
depreciation , are subtracted from the rate base.
Prior to 2008 a contract had segregated O&M payments from capital payments. It was acknowledged
in the 2008 Agreement that these payments, referred to in the Agreement as “net Navy capital
charges”, were simply the equivalent of a rate funded capital payment and not a “true” contribution
in aid of construction. Therefore, it was agreed in 2008 that these charges would be removed from
the total value of contribu tions. In addition to the net Navy capital charges, the Navy also made
% Classification 60.39%20.99%0.00%5.77%0.00%5.58%0.00%0.00%7.26%
Classification of Depreciation Flow w/ Navy Flow w/o Navy BOD w/ Navy BOD w/o Navy TSS w/ Navy TSS w/o Navy Customer Revenue Direct Navy
City of Bremerton October 2020
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direct contributions for the construction of the WWTP. Because this is considered a “true” capital
contribution, it is treated as a contribution in aid of construction and is directly a llocated to the Navy,
therefore reducing the Navy’s allocated rate base . This update continues to use the Agreement
methodology, amortizing both net Navy capital charges and the WWTP contributions at 2.56% per
year until the charges and contributions have been fully amortized.
The net rate base calculation is total wastewater plant -in-service, plus cash working capital, less
accumulated depreciation and net contributions in aid of construction. Net rate base is multiplied by
the agreed upon rate of return to determine the total return on investment.
Exhibit 10: Classification of Wastewater System Net Rate Base
It is important to note that as a result of negotiations, the flow portion of wastewater net rate base is
allocated to the Navy based on reserved flow capacit y. Similar to the depreciation component, rate
base represents fix ed infrastructure required to deliver the stated capacity needs of the customer ,
which are not impacted by annual variations in sewer flow .
III.B.3.b Rate of Return
The 2008 Agreement establishes the rate of return as the cost of debt plus a risk premium. Specific
conditional tests assure that the resulting rate of return from the formula does not create or lead to
unintended consequences. The current agreement maintains these conditional tests.
“The rate of return allowed under this contract shall be the City’s cost of debt plus a risk
premium. The rate of return will be reviewed in any cost of service study prepared by the
City for its utilities throughout the life of this contract. The rate of retu rn shall meet the
following tests:
1. It shall be the greater of:
a) The City’s cost of embedded debt plus x%, or
b) The City’s current Cost of borrowing plus x%
2. It shall always be greater than or equal to the rate of return for in -City retail
customers (owner customers) but less than or equal to the rate of return for
outside City customers.
3. It shall always be greater than or equal to zero
The City’s cost of borrowing shall be the numerical (simple) average of at least three recent
debt issues (within th e previous 90 days if possible) in the marketplace for municipal entities
with simi lar terms and credit ratings. The City’s “cost of embedded debt” shall be the
weighted average of all non -subsidized outstanding debt for the combine ut ilities. These
indexes shall be submitted to the Navy for review and comment prior to use in a future COSA
prepared by the City.”
During the negotiation process, the risk premium was a topic of considerable discussion. This value
has ranged historically from 3.5% to the cur rent 2008 Agreement of 2.5%. The Navy’s position is
that they are a low -risk customer, and they proposed a lower rate during negotiations. In contrast the
City believes the Navy to be a high -risk customer, with financial harm directly experienced by the
City’s utilities from a direct loss of water revenue due to the significant reduction in water use
% Classification 68.94%17.41%0.00%4.71%0.00%4.56%0.03%0.48%3.85%
RevenueTSS w/ Navy TSS w/o Navy Customer Direct NavyBOD w/o NavyClassification of Rate Base Flow w/ Navy Flow w/o Navy BOD w/ Navy
City of Bremerton October 2020
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beginning in 2012 with no explanation or notice, and the inability to collect revenue on par with
increased costs due to the freezing of rate increases during contract negotiations.
As a result of these negotiations, the City and Navy agreed to a 1.5% risk premium to be added to the
City’s cost of debt. The City’s cost of embedded debt is 3.79%, which is greater than the cost of
borrowing of 3.42%. Adding the City’s cost of debt to the 1.5% risk premium results in a total rate of
return equal to 5.29%.
III.C. ALLOCATION FACTORS
The allocation factors used to allocate costs to customers under the methodology previously
discussed are detailed in the Wastewate r Technical Appendix. Allocation factors are used to allocate
O&M, depreciation and net rate base to all wastewater customers including the Navy. Allocation
factors divide cost categories among customers based on each customer’s share of a measurable cost -
defining service characteristic. The following allocation factors were used to equitably distribute
wastewater costs to customers:
⚫ Actual Flow costs are allocated based on each customer’s share of total wastewater treatment
plant influent flow, including i nflow & infiltration (I&I). No I&I is assigned to the Navy. 2019
Navy annual sewer flow of 0.57 MGD constitutes a 12.13% share of the 4.73 MGD of influent
flow at the WWTP West for 2019.
⚫ Reserved Capacity Flow costs are allocated based on the peak flow capacity reserved to deliver
maximum service requirements. This allocation factor recognizes that the system is designed and
sized to meet peak capacity needs that are not impacted by annual variation in flow . Based on
Table 1 -1 of the 2014 Wastewater Compreh ensive Plan Update, the WWTP West has a permit
limit maximum month daily average flow capacity of 15.5 MGD . The Navy requested service
requirements indicate a maximum daily average flow of 3.02 MGD or 19.48% of WWTP West
capacity.
⚫ Strength costs are allocated based on estimated BOD and TSS loadings for each customer. The
Navy does not receive a share of allocated BOD and TSS costs. Rather, the Navy receives a
direct allocation of the total treatment plant representing the Navy’s reserved plant capacit y per
contract, which considers strength as well as flow.
⚫ Customer costs are allocated based on measures related to the number of customer accounts
served by the system . Two separate customer allocation factors are recognized – “actual
customer ” bases the allocation on the number of billing units while “customer weighted ”
attempts to reflect the disproportionate costs associated with serving larger w astewater users. The
weighted customer factor is used for accounting costs and recognizes the additional time that it
may take to read a meter and process a bill for a larger, more complex custome r. The Navy
constitutes a small portion of customer costs and they are allocated 0.39% or less for each
customer allocation factor.
⚫ Revenue costs are allocated based on each customer or customer group’s share of total system
rate revenue. 2019 Navy billed revenue ($2,167,003) represents 14.47% of total system revenue.
⚫ Direct Assignment costs are costs that may be clearly identified or associated with a specific
customer or group of customers. As stated previously, 12.13% of flow-related O&M costs and
19.50% of flow-related depreciation and rate base is allocated directly to the Navy.
The classified O&M, depreciation and rate base is allocated based on the allocati on factors identified
above to determine the total allocated costs by customer or customer group.
City of Bremerton October 2020
Summary of U.S. Navy Contract Negotiations for Water and Wastewater Service page 17
www.fcsgroup.com
III.D. NAVY WASTEWATER COST OF SERVICE
The Navy cost of service is calculated by bringing together the allocable O&M expenses,
depreciation and return on investme nt. Table 4 summarizes the Navy wastewater cost of service.
Table 4: Summary of Navy Wastewater Cost of Service
Based on the mutually agreed upon methodology, the updated Navy w astewater cost of service to
begin the new contract period is $2.6 million. The detailed exhibits can be found in the W astewater
Technical Appendix.
III.E. W ASTEWATER RATES
The cost of service for the Navy establishes the total annual revenue to be collected for wastewater
service. The revenue is collected through a rate structure comp osed of a fixed charge and variable
charge. Consistent with the 2008 Agreement, the wastewater cost of service is collected 50% from
the fixed charge and 50% from the variable charge. The resulting rates are a fixed monthly charge of
$109,695 and a variable charge of $4.70 per CCF of metered flow.
Table 5: Summary of Navy Wastewater Fixed and Variable Charges
O&M Expenses 1,526,187$
Depreciation 702,856
Total O&M plus Depreciation 2,229,044
Allocated Rate Base 7,631,732$
% Rate of Return 5.29%
Return On Investment 403,643
Total Navy Cost of Service $ 2,632,687
Cost Components Total Navy Wastewater Costs
Fixed Monthly Charges 1,316,343$ 109,695$
Variable Charge per CCF 1,316,343 280,068 4.70$
Total $ 2,632,687
[1] Split 50% fixed charge and 50% variable charge
[2] CCF = hundred cubic feet. Represents 2019 billed flow
Calculated
Charge level
Calculated Wastewater
Charges
Target Revenue
[1]
Billing Units
CCF [2]
City of Bremerton October 2020
Summary of U.S. Navy Contract Negotiations for Water and Wastewater Service page 18
www.fcsgroup.com
Section IV. OTHER KEY ISSUES
In addition to agreeing upon the overall amount of revenue to collect from the Navy for water and
wastewater service, several other key issues were discussed during the negotiation process . Each
issue was either satisfactorily a greed upon by the parties or, if necessary, both sides outlined
additional attention/study that will be required to resolve the issue . This section will discuss some of
these key issues raised during the negotiations.
IV.A. SALINITY SURCHARGE
The City would like to invoke CFR 552.243-71 "Equitable Adjustments" as part of 48 CFR 52.243-5
"Changes and Changed Conditions" in order to recover the ongoing cost of influent sewage salinity issues
as it is now a problem for the City that has real financial implications. During negotiations, there w as a
commitment by both parties to complete studies, however, there has been no set time schedule
established and it remains to be seen when a satisfactory resolution will be reached. Meanwhile, the
City experiences ongoing service issues and ultimately incurs costs.
Both parties have agreed that sewage salinity is an issue and that the issue will be treated
independently from the contract negotiations. Contract language shall be included to allow for the
possibility of a salinity surcharge in the future.
IV.B. INITIATION OF NEGOTIATIONS
Due to the time it has taken to resolve current negotiations and the four -year duration of negotiations
for the 2008 contract, both parties agree that the contract documentation should memorialize that
negotiations be initiated earlier (2 years prior to contract termination). This will minimize the
potential for a gap between the termination of the new contact and the execution of the next contract.
IV.C. FUTURE ADJUSTMENT FOR WATER AND
W ASTEWATER RATES
The 2008 Agreement Attach ment J.2. prescribed how future rate adjustments would be applied to the
Navy. It is proposed that this process continue in the future , and the key language to be continued is
as follows:
A. RATIONALE:
(1) The parties have agreed to an approach for annually escal ating or reducing rates that tie to
city of Bremerton rate changes. This method ensures an equitable treatment for all customers of
the City and provides transparency of costs to the Navy.
(2) The parties have agreed that any future rate changes applied to th e Navy accounts for
contract line items 0001 (water) and 0002 (wastewater) shall be tied directly to the weighted
City of Bremerton October 2020
Summary of U.S. Navy Contract Negotiations for Water and Wastewater Service page 19
www.fcsgroup.com
average of rate increases applied to all Non -Navy customers for water and/or wastewater,
respectively.
This approach guarantees that the Navy’s rates will adjust as the City’s rates adjust as a whole.
IV.D. RATE ADJUSTMENTS BEYOND CONTRACT TERM
The Navy has exercised its unilateral option to continue service beyond the term of the contract.
However, the City is required to freeze any rate adjustments once the contract term ends. The rate
freeze is of sole benefit to the Navy and results in revenues from the Navy that do not keep pace with
the cost of service. The City’s utilities are functionally not -for-profit businesses and so the net effect
of the rate freeze is that as the City raises retail rates, the other city ratepayers (the residents and
businesses of Bremerton) will increasingly subsidize the Navy for its service.
The parties agree to invoke and include CFR 552.243 -71 Section g.2 to memorialize in the contract
documentation an agreement in principle, that rate increases should apply to the Navy’s rates during
any gap between the termination of the new contract and t he execution of the following contract as
this qualifies as performance beyond the completion date.
IV.E. LUMP SUM PAYMENT
The current contract rate freeze upon the contract term ending has resulted in a shortfall of water and
wastewater revenue for the City. During this time, continued water and wastewater service was
provided by the City to the Navy , with rates charged to th e Navy frozen at 2017 levels. The City has
calculated the revenue shortfall consistent with the methodology outlined in Attachment J.2 and J.3
of the 2008 contract as if the contract term had not expired in July 2018. This cumulative shortfall
from the rate freeze is estimated to be nearly $1 million dollars through 2020.
Both parties agree that the City will submit a claim for consideration separate from the contract
negotiations.
IV.F. RE-OPENER CLAUSE
The City acknowledges that FAR 52.241 -8 allows either party to request a change in conditions of
service , including a rate change. In an effort to remain transparent, the City would like to highlight
that in addition to any rate changes built into the contract such as Attachment J.2 of the 2008 contact,
there will likely be a need to renegotiate the rates and cost of service under FAR 52.241 -8 when the
State of Washington Department of Ecology enacts new discharge limitation permit requirements for
enhanced treatment to reduce nutrient discharges to the Puget Sound.
Both parties agree to memorialize in the contact documentation that the City expects a need to re -
open negotiations in the future to address these or other new permit requirements.
City of Bremerton October 2020
Summary of U.S. Navy Contract Negotiations for Water and Wastewater Service page 20
TECHNICAL APPENDIX – WATER
City of Bremerton
Navy Water Rate Calculation
A-1 Allocation of Fixed Asset Original Cost and Accumulated Depreciation
Commodity Capacity Capacity w/o
Navy
Actual
Customer
Actual
Customer w/o
Navy
Customer
Weighted
Meters &
Services Fire Fire w/o Navy Revenue As All Others
Source of Supply 7,648,781$ 42.00%58.00%0.00%0.00%0.00%0.00%0.00%0.00%0.00%0.00%0.00%100.00%
Treatment 4,622,460 100.00%0.00%0.00%0.00%0.00%0.00%0.00%0.00%0.00%0.00%0.00%100.00%
Storage 6,925,417 0.00%97.00%0.00%0.00%0.00%0.00%0.00%3.00%0.00%0.00%0.00%100.00%
Transmission 2,217,633 0.00%100.00%0.00%0.00%0.00%0.00%0.00%0.00%0.00%0.00%0.00%100.00%
Pumping 4,872,084 0.00%100.00%0.00%0.00%0.00%0.00%0.00%0.00%0.00%0.00%0.00%100.00%
Distribution
Mains 2"-6" 2 5,051,160 0.00%0.00%49.00%0.00%27.00%0.00%0.00%0.00%24.00%0.00%0.00%100.00%
Mains 8"-12"21,798,963 0.00%49.00%0.00%27.00%0.00%0.00%0.00%24.00%0.00%0.00%0.00%100.00%
Mains 16" - 36"12,319,647 0.00%49.00%0.00%27.00%0.00%0.00%0.00%24.00%0.00%0.00%0.00%100.00%
Hydrants 2,689,288 0.00%0.00%0.00%0.00%0.00%0.00%0.00%100.00%0.00%0.00%0.00%100.00%
Services 3,909,232 0.00%0.00%0.00%0.00%0.00%0.00%100.00%0.00%0.00%0.00%0.00%100.00%
Fire Services 382,021 0.00%0.00%0.00%0.00%0.00%0.00%0.00%100.00%0.00%0.00%0.00%100.00%
Meters 3,008,649 0.00%0.00%0.00%0.00%0.00%0.00%100.00%0.00%0.00%0.00%0.00%100.00%
General Plant 3 18,996,429 0.00%0.00%0.00%0.00%0.00%0.00%0.00%0.00%0.00%0.00%100.00%100.00%
Total Utility Plant 94,441,765$ 7,834,948$ 34,961,784$ 2,475,068$ 9,212,025$ 1,363,813$ -$ 6,917,881$ 11,467,538$ 1,212,278$ -$ 18,996,429$ 94,441,765$
Functions of Service 10.38%46.34%3.28%12.21%1.81%0.00%9.17%15.20%1.61%0.00%100.00%
Allocation of "As All Others"1,972,767$ 8,803,050$ 623,199$ 2,319,502$ 343,395$ -$ 1,741,858$ 2,887,419$ 305,240$ -$ (18,996,429)$ -$
94,441,765$ 9,807,715$ 43,764,833$ 3,098,267$ 11,531,526$ 1,707,208$ -$ 8,659,739$ 14,354,957$ 1,517,519$ -$ -$ 94,441,765$
10.38%46.34%3.28%12.21%1.81%0.00%9.17%15.20%1.61%0.00%0.00%100.00%
Less: Accumulated Depreciation 1
Source of Supply 4,337,991$ 42.00%58.00%0.00%0.00%0.00%0.00%0.00%0.00%0.00%0.00%0.00%
Treatment 939,089 100.00%0.00%0.00%0.00%0.00%0.00%0.00%0.00%0.00%0.00%0.00%
Storage 3,736,797 0.00%97.00%0.00%0.00%0.00%0.00%0.00%3.00%0.00%0.00%0.00%
Transmission 710,388 0.00%100.00%0.00%0.00%0.00%0.00%0.00%0.00%0.00%0.00%0.00%
Pumping 2,233,044 0.00%100.00%0.00%0.00%0.00%0.00%0.00%0.00%0.00%0.00%0.00%
Distribution
Mains 2"-6"2,542,144 0.00%0.00%49.00%0.00%27.00%0.00%0.00%0.00%24.00%0.00%0.00%
Mains 8"-12"7,118,687 0.00%49.00%0.00%27.00%0.00%0.00%0.00%24.00%0.00%0.00%0.00%
Mains 16" - 36"4,350,827 0.00%49.00%0.00%27.00%0.00%0.00%0.00%24.00%0.00%0.00%0.00%
Hydrants 1,036,451 0.00%0.00%0.00%0.00%0.00%0.00%0.00%100.00%0.00%0.00%0.00%
Services 1,893,102 0.00%0.00%0.00%0.00%0.00%0.00%100.00%0.00%0.00%0.00%0.00%
Fire Services 175,587 0.00%0.00%0.00%0.00%0.00%0.00%0.00%100.00%0.00%0.00%0.00%
Meters 1,031,402 0.00%0.00%0.00%0.00%0.00%0.00%100.00%0.00%0.00%0.00%0.00%
General Plant 8,497,641 9.17%48.84%4.14%10.29%2.28%0.00%9.71%13.54%2.03%0.00%0.00%
Total Accumulated Depreciation 38,603,151$ 3,540,383$ 18,854,663$ 1,597,251$ 3,970,869$ 880,118$ -$ 3,749,981$ 5,227,559$ 782,327$ -$ -$
55,838,614$ 6,267,331$ 24,910,170$ 1,501,017$ 7,560,657$ 827,091$ -$ 4,909,758$ 9,127,398$ 735,192$ -$ -$
11.22%44.61%2.69%13.54%1.48%0.00%8.79%16.35%1.32%0.00%0.00%
1 Original cost of assets and accumulated depreciation from City fixed asset schedule as of 12/31/2016
2 The City and Navy agreed that the Navy does not benefit from 2"-6" water mains and should not be allocated any of these facilities
3 General plant is allocated as all other plant in service
Net Plant in Service
Plant in Service 1
Total Plant in Service
TotalTotal
Functions of Service
Prepared by FCS GROUP
(425) 867-1802
Technical Appendix - Water Rate Calculation
1
City of Bremerton
Navy Water Rate Calculation
A-2 Allocation of Source of Supply Assets
Average Day 1 5.86 mgd
Peak Day 2 14.10 mgd
Commodity 42%
Capacity 58%
1 2017 recorded average day demand (ADD)
2 2017 recorded maximum day demand (MDD)
A-3 Allocation of Storage Assets
Fire Flow Requirements 1 240 minutes 4,000 gpm 0.96 MG
Storage Capacity 2 33.20 MG
Public Fire Protection 3%
Capacity 97%
1 Table 8-5 of 2012 Water System Plan - total system fire flow requirement
2 Section 1.5.3 of 2012 Water System Plan - total combined storage capacity of Main System and West 517 Zone System
Allocation of Source of Supply Demand (mgd)
MGAllocation of Storage Duration Gallons per
Minute
Prepared by FCS GROUP
(425) 867-1802
Technical Appendix - Water Rate Calculation
2
City of Bremerton
Navy Water Rate Calculation
A-4 Allocation of Distribution Mains
<=2 in 68,291 LF 3,850 LF 72,141 LF 67$ 4,833,447$
3-in 10,139 LF 0 LF 10,139 LF 101 1,018,970
4-in 132,203 LF 2,316 LF 134,519 LF 134 18,025,546
6-in 421,300 LF 4,580 LF 425,880 LF 201 85,601,880
8-in 519,998 LF 31,336 LF 551,334 LF 268 147,757,512
10-in 43,276 LF 3,536 LF 46,812 LF 335 15,682,020
12-in 185,917 LF 13,525 LF 199,442 LF 402 80,175,684
Total Distribution Mains 1,381,124 LF 59,143 LF 1,440,267 LF 353,095,059$
Customer 5
2-in replacement cost of Distribution system 96,497,889$ 27.0%
Capacity 6
Cost of 6-in and smaller pipe 109,479,843$ 49.0%
Cost of 8-in and larger pipe at 6-in cost 160,315,188$
Fire Protection 7
1 - Commodity and Capacity share 24.0%
1 Mains larger than 12-in are considered Transmission only, and their costs are allocated solely to the Transmission function
2 Table 5-4 of 2012 Water System Plan - City of Bremerton Main System Pipe Inventory
3 Table 5-5 of 2012 Water System Plan - City of Bremerton West 517 Zone System Pipe Inventory
4 City Engineer's estimates
5 Customer is allocated the share of total Distribution replacement costs made up by the cost of replacing the entire system with 2-in pipe, recognizing that the minimum size required to provide average demand is 2-in
6 Capacity is allocated the total share of Distribution replacement costs if all 8-in and larger pipe was replaced with 6-in pipe, recognizing that 8-in and larger pipe has been upsized to meet fire flow requirements
7 Fire Protection is allocated the remaining cost share of the Distribution system
Length (West
517 Zone
System) 3
Replacement
Cost per LF 4
Replacement
Cost (Total
System)
Total SystemAllocation of Distribution Mains 1 Length (Main
System) 2
Prepared by FCS GROUP
(425) 867-1802
Technical Appendix - Water Rate Calculation
3
City of Bremerton
Navy Water Rate Calculation
A-5 Allocation of Operating Expenses and Depreciation
Commodity Capacity Capacity w/o Navy Actual Customer Actual Customer
w/o Navy
Customer
Weighted Meters & Services Fire Fire w/o Navy Revenue As All Others
Taxes 3
State Taxes 669,300$ 0.00%0.00%0.00%0.00%0.00%0.00%0.00%0.00%0.00%100.00%0.00%100.00%All to Revenue
City Taxes 2,394,883 0.00%0.00%0.00%0.00%0.00%0.00%0.00%0.00%0.00%100.00%0.00%100.00%All to Revenue
Administration
Salaries & Wages Regular 183,900$ 10.38%46.34%3.28%12.21%1.81%0.00%9.17%15.20%1.61%0.00%0.00%100.00%As Plant in Service
Overtime pay 500 10.38%46.34%3.28%12.21%1.81%0.00%9.17%15.20%1.61%0.00%0.00%100.00%As Plant in Service
Personnel Benefits 46,540 10.38%46.34%3.28%12.21%1.81%0.00%9.17%15.20%1.61%0.00%0.00%100.00%As Plant in Service
Medical & Dental Benefits 25,500 10.38%46.34%3.28%12.21%1.81%0.00%9.17%15.20%1.61%0.00%0.00%100.00%As Plant in Service
Office & Operating Supply 25,000 10.38%46.34%3.28%12.21%1.81%0.00%9.17%15.20%1.61%0.00%0.00%100.00%As Plant in Service
Fuel Consumed 725 10.38%46.34%3.28%12.21%1.81%0.00%9.17%15.20%1.61%0.00%0.00%100.00%As Plant in Service
Small tools, EQ & Furniture 5,000 10.38%46.34%3.28%12.21%1.81%0.00%9.17%15.20%1.61%0.00%0.00%100.00%As Plant in Service
Computer Related Items 2,000 10.38%46.34%3.28%12.21%1.81%0.00%9.17%15.20%1.61%0.00%0.00%100.00%As Plant in Service
Food & Beverage 500 10.38%46.34%3.28%12.21%1.81%0.00%9.17%15.20%1.61%0.00%0.00%100.00%As Plant in Service
Professional Services Ext 85,000 10.38%46.34%3.28%12.21%1.81%0.00%9.17%15.20%1.61%0.00%0.00%100.00%As Plant in Service
Other Services 250 10.38%46.34%3.28%12.21%1.81%0.00%9.17%15.20%1.61%0.00%0.00%100.00%As Plant in Service
Telecommunications 200 10.38%46.34%3.28%12.21%1.81%0.00%9.17%15.20%1.61%0.00%0.00%100.00%As Plant in Service
Telecommunications IFD 1,670 10.38%46.34%3.28%12.21%1.81%0.00%9.17%15.20%1.61%0.00%0.00%100.00%As Plant in Service
Postage 1,000 0.00%0.00%0.00%100.00%0.00%0.00%0.00%0.00%0.00%0.00%0.00%100.00%All Actual Customer
Travel 5,000 10.38%46.34%3.28%12.21%1.81%0.00%9.17%15.20%1.61%0.00%0.00%100.00%As Plant in Service
Training 4,500 10.38%46.34%3.28%12.21%1.81%0.00%9.17%15.20%1.61%0.00%0.00%100.00%As Plant in Service
Advertising 1,000 10.38%46.34%3.28%12.21%1.81%0.00%9.17%15.20%1.61%0.00%0.00%100.00%As Plant in Service
Equipment Rential 2,000 10.38%46.34%3.28%12.21%1.81%0.00%9.17%15.20%1.61%0.00%0.00%100.00%As Plant in Service
Information Tech - IFD 22,631 10.38%46.34%3.28%12.21%1.81%0.00%9.17%15.20%1.61%0.00%0.00%100.00%As Plant in Service
Equipment Repair - IFD 8,996 10.38%46.34%3.28%12.21%1.81%0.00%9.17%15.20%1.61%0.00%0.00%100.00%As Plant in Service
Miscellaneous 5,000 10.38%46.34%3.28%12.21%1.81%0.00%9.17%15.20%1.61%0.00%0.00%100.00%As Plant in Service
Dues & Subscriptions 2,000 10.38%46.34%3.28%12.21%1.81%0.00%9.17%15.20%1.61%0.00%0.00%100.00%As Plant in Service
Water Resources
Salaries & Wages Regular 1,002,827$ 42.00%58.00%0.00%0.00%0.00%0.00%0.00%0.00%0.00%0.00%0.00%100.00%As Source of Supply
Salaries & Wages Extra Help 10,500 42.00%58.00%0.00%0.00%0.00%0.00%0.00%0.00%0.00%0.00%0.00%100.00%As Source of Supply
Stand By 34,000 42.00%58.00%0.00%0.00%0.00%0.00%0.00%0.00%0.00%0.00%0.00%100.00%As Source of Supply
Overtime Pay 40,000 42.00%58.00%0.00%0.00%0.00%0.00%0.00%0.00%0.00%0.00%0.00%100.00%As Source of Supply
Personnel Benefits 264,974 42.00%58.00%0.00%0.00%0.00%0.00%0.00%0.00%0.00%0.00%0.00%100.00%As Source of Supply
Medical & Dental Benefits 184,710 42.00%58.00%0.00%0.00%0.00%0.00%0.00%0.00%0.00%0.00%0.00%100.00%As Source of Supply
Office & Operating Supply 250,000 42.00%58.00%0.00%0.00%0.00%0.00%0.00%0.00%0.00%0.00%0.00%100.00%As Source of Supply
Utility Inventory 3,000 42.00%58.00%0.00%0.00%0.00%0.00%0.00%0.00%0.00%0.00%0.00%100.00%As Source of Supply
Fuel Consumed 16,656 42.00%58.00%0.00%0.00%0.00%0.00%0.00%0.00%0.00%0.00%0.00%100.00%As Source of Supply
Items Purchased for Inventory 2,000 42.00%58.00%0.00%0.00%0.00%0.00%0.00%0.00%0.00%0.00%0.00%100.00%As Source of Supply
Small Tools, EQ & Furniture 50,000 42.00%58.00%0.00%0.00%0.00%0.00%0.00%0.00%0.00%0.00%0.00%100.00%As Source of Supply
Computer Related Items 10,000 42.00%58.00%0.00%0.00%0.00%0.00%0.00%0.00%0.00%0.00%0.00%100.00%As Source of Supply
Food & Beverage 200 42.00%58.00%0.00%0.00%0.00%0.00%0.00%0.00%0.00%0.00%0.00%100.00%As Source of Supply
Professional Services Ext 150,000 42.00%58.00%0.00%0.00%0.00%0.00%0.00%0.00%0.00%0.00%0.00%100.00%As Source of Supply
Professional Services IFD 7,000 42.00%58.00%0.00%0.00%0.00%0.00%0.00%0.00%0.00%0.00%0.00%100.00%As Source of Supply
Other Services 15,000 42.00%58.00%0.00%0.00%0.00%0.00%0.00%0.00%0.00%0.00%0.00%100.00%As Source of Supply
Intergovernmental Service 40,000 42.00%58.00%0.00%0.00%0.00%0.00%0.00%0.00%0.00%0.00%0.00%100.00%As Source of Supply
Telecommunications 15,000 42.00%58.00%0.00%0.00%0.00%0.00%0.00%0.00%0.00%0.00%0.00%100.00%As Source of Supply
Telecommunications IFD 3,674 42.00%58.00%0.00%0.00%0.00%0.00%0.00%0.00%0.00%0.00%0.00%100.00%As Source of Supply
Postage 3,500 42.00%58.00%0.00%0.00%0.00%0.00%0.00%0.00%0.00%0.00%0.00%100.00%As Source of Supply
Travel 5,000 42.00%58.00%0.00%0.00%0.00%0.00%0.00%0.00%0.00%0.00%0.00%100.00%As Source of Supply
Training 10,000 42.00%58.00%0.00%0.00%0.00%0.00%0.00%0.00%0.00%0.00%0.00%100.00%As Source of Supply
Equipment Rental 3,000 42.00%58.00%0.00%0.00%0.00%0.00%0.00%0.00%0.00%0.00%0.00%100.00%As Source of Supply
Natural Gas 2,000 100.00%0.00%0.00%0.00%0.00%0.00%0.00%0.00%0.00%0.00%0.00%100.00%All to Commodity
Electricity 350,000 100.00%0.00%0.00%0.00%0.00%0.00%0.00%0.00%0.00%0.00%0.00%100.00%All to Commodity
Water / Sewer / Stormwater 1,000 42.00%58.00%0.00%0.00%0.00%0.00%0.00%0.00%0.00%0.00%0.00%100.00%As Source of Supply
Information Tech - IFD 57,320 42.00%58.00%0.00%0.00%0.00%0.00%0.00%0.00%0.00%0.00%0.00%100.00%As Source of Supply
Equipment Repair & Maint 50,000 42.00%58.00%0.00%0.00%0.00%0.00%0.00%0.00%0.00%0.00%0.00%100.00%As Source of Supply
Equipment Repair - IFD 41,801 42.00%58.00%0.00%0.00%0.00%0.00%0.00%0.00%0.00%0.00%0.00%100.00%As Source of Supply
Other Improvements 5,000 42.00%58.00%0.00%0.00%0.00%0.00%0.00%0.00%0.00%0.00%0.00%100.00%As Source of Supply
Structures & Grounds 60,000 42.00%58.00%0.00%0.00%0.00%0.00%0.00%0.00%0.00%0.00%0.00%100.00%As Source of Supply
Miscellaneous 5,000 42.00%58.00%0.00%0.00%0.00%0.00%0.00%0.00%0.00%0.00%0.00%100.00%As Source of Supply
Dues & Subscriptions 5,000 42.00%58.00%0.00%0.00%0.00%0.00%0.00%0.00%0.00%0.00%0.00%100.00%As Source of Supply
Allocation Basis 2Operating Expenses 1 Total Total
Functions of Service
Prepared by FCS GROUP
(425) 867-1802
Technical Appendix - Water Rate Calculation
4
City of Bremerton
Navy Water Rate Calculation
A-5 Allocation of Operating Expenses and Depreciation
Commodity Capacity Capacity w/o Navy Actual Customer Actual Customer
w/o Navy
Customer
Weighted Meters & Services Fire Fire w/o Navy Revenue As All Others Allocation Basis 2Operating Expenses 1 Total Total
Functions of Service
Water Distribution
Salaries & Wages Regular 1,360,168$ 10.38%46.34%3.28%12.21%1.81%0.00%9.17%15.20%1.61%0.00%0.00%100.00%As Plant in Service
Salaries & Wages Extra Help 84,000 10.38%46.34%3.28%12.21%1.81%0.00%9.17%15.20%1.61%0.00%0.00%100.00%As Plant in Service
Stand By 27,000 10.38%46.34%3.28%12.21%1.81%0.00%9.17%15.20%1.61%0.00%0.00%100.00%As Plant in Service
Overtime Pay 20,000 10.38%46.34%3.28%12.21%1.81%0.00%9.17%15.20%1.61%0.00%0.00%100.00%As Plant in Service
Personnel Benefits 368,974 10.38%46.34%3.28%12.21%1.81%0.00%9.17%15.20%1.61%0.00%0.00%100.00%As Plant in Service
Medical & Dental Benefits 309,184 10.38%46.34%3.28%12.21%1.81%0.00%9.17%15.20%1.61%0.00%0.00%100.00%As Plant in Service
Office & Operating Supply 100,000 10.38%46.34%3.28%12.21%1.81%0.00%9.17%15.20%1.61%0.00%0.00%100.00%As Plant in Service
Utility Inventory (80,000) 10.38%46.34%3.28%12.21%1.81%0.00%9.17%15.20%1.61%0.00%0.00%100.00%As Plant in Service
Fuel Consumed 62,102 10.38%46.34%3.28%12.21%1.81%0.00%9.17%15.20%1.61%0.00%0.00%100.00%As Plant in Service
Items Purchased For Inventory 180,000 10.38%46.34%3.28%12.21%1.81%0.00%9.17%15.20%1.61%0.00%0.00%100.00%As Plant in Service
Small Tools, EQ & Furn 25,000 10.38%46.34%3.28%12.21%1.81%0.00%9.17%15.20%1.61%0.00%0.00%100.00%As Plant in Service
Computer Related Items 6,000 10.38%46.34%3.28%12.21%1.81%0.00%9.17%15.20%1.61%0.00%0.00%100.00%As Plant in Service
Professional Services Ext 6,000 10.38%46.34%3.28%12.21%1.81%0.00%9.17%15.20%1.61%0.00%0.00%100.00%As Plant in Service
Professional Services IFD 1,130,989 10.38%46.34%3.28%12.21%1.81%0.00%9.17%15.20%1.61%0.00%0.00%100.00%As Plant in Service
Other Services 3,000 10.38%46.34%3.28%12.21%1.81%0.00%9.17%15.20%1.61%0.00%0.00%100.00%As Plant in Service
Intergovernmental Services 630 10.38%46.34%3.28%12.21%1.81%0.00%9.17%15.20%1.61%0.00%0.00%100.00%As Plant in Service
Telecommunications 18,000 10.38%46.34%3.28%12.21%1.81%0.00%9.17%15.20%1.61%0.00%0.00%100.00%As Plant in Service
Telecommunications IFD 1,002 10.38%46.34%3.28%12.21%1.81%0.00%9.17%15.20%1.61%0.00%0.00%100.00%As Plant in Service
Travel 4,000 10.38%46.34%3.28%12.21%1.81%0.00%9.17%15.20%1.61%0.00%0.00%100.00%As Plant in Service
Training 5,000 10.38%46.34%3.28%12.21%1.81%0.00%9.17%15.20%1.61%0.00%0.00%100.00%As Plant in Service
Equipment Rental 5,000 10.38%46.34%3.28%12.21%1.81%0.00%9.17%15.20%1.61%0.00%0.00%100.00%As Plant in Service
Equipment - Interfund 355,597 10.38%46.34%3.28%12.21%1.81%0.00%9.17%15.20%1.61%0.00%0.00%100.00%As Plant in Service
Interfund Insurance Prem 156,777 10.38%46.34%3.28%12.21%1.81%0.00%9.17%15.20%1.61%0.00%0.00%100.00%As Plant in Service
Natural Gas 1,000 100.00%0.00%0.00%0.00%0.00%0.00%0.00%0.00%0.00%0.00%0.00%100.00%All to Commodity
Electricity 15,000 100.00%0.00%0.00%0.00%0.00%0.00%0.00%0.00%0.00%0.00%0.00%100.00%All to Commodity
Water / Sewer / Stormwater 800 10.38%46.34%3.28%12.21%1.81%0.00%9.17%15.20%1.61%0.00%0.00%100.00%As Plant in Service
Garbage / Waste Disposal 2,000 10.38%46.34%3.28%12.21%1.81%0.00%9.17%15.20%1.61%0.00%0.00%100.00%As Plant in Service
Information Tech - IFD 103,167 10.38%46.34%3.28%12.21%1.81%0.00%9.17%15.20%1.61%0.00%0.00%100.00%As Plant in Service
Equipment Repair & Maint 7,500 10.38%46.34%3.28%12.21%1.81%0.00%9.17%15.20%1.61%0.00%0.00%100.00%As Plant in Service
Equipment Repair - IFD 113,903 10.38%46.34%3.28%12.21%1.81%0.00%9.17%15.20%1.61%0.00%0.00%100.00%As Plant in Service
Other Improvements 75,000 10.38%46.34%3.28%12.21%1.81%0.00%9.17%15.20%1.61%0.00%0.00%100.00%As Plant in Service
Structures & Grounds 170,000 10.38%46.34%3.28%12.21%1.81%0.00%9.17%15.20%1.61%0.00%0.00%100.00%As Plant in Service
Miscellaneous 5,000 10.38%46.34%3.28%12.21%1.81%0.00%9.17%15.20%1.61%0.00%0.00%100.00%As Plant in Service
Dues & Subscriptions 33,400 10.38%46.34%3.28%12.21%1.81%0.00%9.17%15.20%1.61%0.00%0.00%100.00%As Plant in Service
Forestry
Salaries & Wages Regular 351,400$ 42.00%58.00%0.00%0.00%0.00%0.00%0.00%0.00%0.00%0.00%0.00%100.00%As Source of Supply
Salaries & Wages Ex Help 28,600 42.00%58.00%0.00%0.00%0.00%0.00%0.00%0.00%0.00%0.00%0.00%100.00%As Source of Supply
Overtime Pay 65,000 42.00%58.00%0.00%0.00%0.00%0.00%0.00%0.00%0.00%0.00%0.00%100.00%As Source of Supply
Personnel Benefits 94,300 42.00%58.00%0.00%0.00%0.00%0.00%0.00%0.00%0.00%0.00%0.00%100.00%As Source of Supply
Medical & Dental Benefits 87,400 42.00%58.00%0.00%0.00%0.00%0.00%0.00%0.00%0.00%0.00%0.00%100.00%As Source of Supply
Office & Operating Supply 40,000 42.00%58.00%0.00%0.00%0.00%0.00%0.00%0.00%0.00%0.00%0.00%100.00%As Source of Supply
Utility Inventory 500 42.00%58.00%0.00%0.00%0.00%0.00%0.00%0.00%0.00%0.00%0.00%100.00%As Source of Supply
Fuel Consumed 14,495 42.00%58.00%0.00%0.00%0.00%0.00%0.00%0.00%0.00%0.00%0.00%100.00%As Source of Supply
Items Purch For Inventory 1,000 42.00%58.00%0.00%0.00%0.00%0.00%0.00%0.00%0.00%0.00%0.00%100.00%As Source of Supply
Small Tools, Eq & Furn 10,000 42.00%58.00%0.00%0.00%0.00%0.00%0.00%0.00%0.00%0.00%0.00%100.00%As Source of Supply
Computer Related Items 5,000 42.00%58.00%0.00%0.00%0.00%0.00%0.00%0.00%0.00%0.00%0.00%100.00%As Source of Supply
Professional Services Ext 100,000 42.00%58.00%0.00%0.00%0.00%0.00%0.00%0.00%0.00%0.00%0.00%100.00%As Source of Supply
Professional Services IFD 5,000 42.00%58.00%0.00%0.00%0.00%0.00%0.00%0.00%0.00%0.00%0.00%100.00%As Source of Supply
Other Services 290,000 42.00%58.00%0.00%0.00%0.00%0.00%0.00%0.00%0.00%0.00%0.00%100.00%As Source of Supply
Intergovernmental Services 10,500 42.00%58.00%0.00%0.00%0.00%0.00%0.00%0.00%0.00%0.00%0.00%100.00%As Source of Supply
Telecommunications 4,500 42.00%58.00%0.00%0.00%0.00%0.00%0.00%0.00%0.00%0.00%0.00%100.00%As Source of Supply
Telecommunications Ifd 835 42.00%58.00%0.00%0.00%0.00%0.00%0.00%0.00%0.00%0.00%0.00%100.00%As Source of Supply
Postage 100 42.00%58.00%0.00%0.00%0.00%0.00%0.00%0.00%0.00%0.00%0.00%100.00%As Source of Supply
Travel 3,000 42.00%58.00%0.00%0.00%0.00%0.00%0.00%0.00%0.00%0.00%0.00%100.00%As Source of Supply
Training 20,000 42.00%58.00%0.00%0.00%0.00%0.00%0.00%0.00%0.00%0.00%0.00%100.00%As Source of Supply
Equipment Rental 6,000 42.00%58.00%0.00%0.00%0.00%0.00%0.00%0.00%0.00%0.00%0.00%100.00%As Source of Supply
Equipment - Interfund 50,000 42.00%58.00%0.00%0.00%0.00%0.00%0.00%0.00%0.00%0.00%0.00%100.00%As Source of Supply
Electricity 2,000 100.00%0.00%0.00%0.00%0.00%0.00%0.00%0.00%0.00%0.00%0.00%100.00%All to Commodity
Water/Sewer/Stormwater 1,000 42.00%58.00%0.00%0.00%0.00%0.00%0.00%0.00%0.00%0.00%0.00%100.00%As Source of Supply
Garbage/Waste Disposal 1,000 42.00%58.00%0.00%0.00%0.00%0.00%0.00%0.00%0.00%0.00%0.00%100.00%As Source of Supply
Information Tech− Ifd 15,325 42.00%58.00%0.00%0.00%0.00%0.00%0.00%0.00%0.00%0.00%0.00%100.00%As Source of Supply
Equipment Repair & Maint 10,000 42.00%58.00%0.00%0.00%0.00%0.00%0.00%0.00%0.00%0.00%0.00%100.00%As Source of Supply
Equipment Repair − Ifd 56,319 42.00%58.00%0.00%0.00%0.00%0.00%0.00%0.00%0.00%0.00%0.00%100.00%As Source of Supply
Structures & Grounds 275,000 42.00%58.00%0.00%0.00%0.00%0.00%0.00%0.00%0.00%0.00%0.00%100.00%As Source of Supply
Miscellaneous 10,000 42.00%58.00%0.00%0.00%0.00%0.00%0.00%0.00%0.00%0.00%0.00%100.00%As Source of Supply
Prepared by FCS GROUP
(425) 867-1802
Technical Appendix - Water Rate Calculation
5
City of Bremerton
Navy Water Rate Calculation
A-5 Allocation of Operating Expenses and Depreciation
Commodity Capacity Capacity w/o Navy Actual Customer Actual Customer
w/o Navy
Customer
Weighted Meters & Services Fire Fire w/o Navy Revenue As All Others Allocation Basis 2Operating Expenses 1 Total Total
Functions of Service
Water Customer Service
Salaries & Wages Regular 179,800$ 0.00%0.00%0.00%100.00%0.00%0.00%0.00%0.00%0.00%0.00%0.00%100.00%All to Actual Customer
Overtime Pay 10,000 0.00%0.00%0.00%100.00%0.00%0.00%0.00%0.00%0.00%0.00%0.00%100.00%All to Actual Customer
Personnel Benefits 47,100 0.00%0.00%0.00%100.00%0.00%0.00%0.00%0.00%0.00%0.00%0.00%100.00%All to Actual Customer
Medical & Dental Benefits 31,500 0.00%0.00%0.00%100.00%0.00%0.00%0.00%0.00%0.00%0.00%0.00%100.00%All to Actual Customer
Office & Operating Supply 25,000 0.00%0.00%0.00%100.00%0.00%0.00%0.00%0.00%0.00%0.00%0.00%100.00%All to Actual Customer
Small Tools, Eq & Furn 500 0.00%0.00%0.00%0.00%0.00%0.00%100.00%0.00%0.00%0.00%0.00%100.00%All to Meters annd Services
Computer Related Items 1,500 0.00%0.00%0.00%100.00%0.00%0.00%0.00%0.00%0.00%0.00%0.00%100.00%All to Actual Customer
Other Services 12,000 0.00%0.00%0.00%100.00%0.00%0.00%0.00%0.00%0.00%0.00%0.00%100.00%All to Actual Customer
Postage 50,000 0.00%0.00%0.00%100.00%0.00%0.00%0.00%0.00%0.00%0.00%0.00%100.00%All to Actual Customer
Travel 1,500 0.00%0.00%0.00%100.00%0.00%0.00%0.00%0.00%0.00%0.00%0.00%100.00%All to Actual Customer
Training 3,000 0.00%0.00%0.00%100.00%0.00%0.00%0.00%0.00%0.00%0.00%0.00%100.00%All to Actual Customer
Equipment Rental 750 0.00%0.00%0.00%0.00%0.00%100.00%0.00%0.00%0.00%0.00%0.00%100.00%All to Customer Weighted
Information Tech− Ifd 11,307 0.00%0.00%0.00%100.00%0.00%0.00%0.00%0.00%0.00%0.00%0.00%100.00%All to Actual Customer
Miscellaneous 1,000 0.00%0.00%0.00%100.00%0.00%0.00%0.00%0.00%0.00%0.00%0.00%100.00%All to Actual Customer
Depreciation Expense 4 2,143,774$ 10.38%46.34%3.28%12.21%1.81%0.00%9.17%15.20%1.61%0.00%0.00%100.00%As Plant in Service
Total Operating Expenses 14,943,455$ 2,759,945$ 5,614,242$ 237,217$ 1,257,612$ 130,711$ 750$ 663,528$ 1,099,079$ 116,188$ 3,064,183$ -$ 14,943,455$
Functions of Service 18.47%37.57%1.59%8.42%0.87%0.01%4.44%7.35%0.78%20.51%100.00%
Allocation of "As All Others"-$ -$ -$ -$ -$ -$ -$ -$ -$ -$ -$ -$
14,943,455$ 2,759,945$ 5,614,242$ 237,217$ 1,257,612$ 130,711$ 750$ 663,528$ 1,099,079$ 116,188$ 3,064,183$ -$ 14,943,455$
100.00%18.47%37.57%1.59%8.42%0.87%0.01%4.44%7.35%0.78%20.51%0.00%100.00%
1 Operating expenses sourced from detailed 2020 Water Expenditure Budget
2 Operating expenses allocated based on the utility function(s) most likely driving that cost
3 Taxes allocated based on 2019 actual water revenue
4 2017 Depreciation Expense
Total Operating Expenses
Prepared by FCS GROUP
(425) 867-1802
Technical Appendix - Water Rate Calculation
6
City of Bremerton
Navy Water Rate Calculation
A-6 Calculation of Net Contributions in aid of Construction
Pre-2004 1 18,626,794$ 11,750,269$ -$ -$
2004 2,096,462 1,551,382 - -
2005 - - 190,813 145,018
2006 176,913 137,992 189,192 147,570
2007 961,302 769,042 67,659 54,127
2008 4,114,136 3,373,592 - -
2009 639,690 537,339 29,114 24,456
2010 126,778 109,029 198,010 170,289
2011 776,669 683,469 - -
2012 647,699 582,929 6,210,419 5,589,377
2013 356,678 328,143 (9,779) (8,997)
2014 571,154 536,885 - -
2015 167,800 161,088 17,869 17,154
2016 163,495 160,225 - -
2017 550,436 550,436 - -
Total 29,976,006$ 21,231,820$ 6,893,297$ 6,138,994$
1 Pre-2004 contributions depreciated equal to percentage of total distribution system depreciated
2 Other contributions include grants and loan forgiveness
A-7 Calculation of Net Navy Capital Charges
Net Navy capital charges 1996 5,091,931$ 2,609,105$ 2,482,826$
Total 5,091,931$ 2,609,105$ 2,482,826$
1 Depreciated by 2.44% of original cost per year based on 2008 Agreement methodology
System Acceptances Other Contributions 2
Original Cost Net Value
Net ValueTotal
Depreciation 1
Original Contract
AmountDescriptionYear
Original Cost Net ValueYear
Prepared by FCS GROUP
(425) 867-1802
Technical Appendix - Water Rate Calculation
7
City of Bremerton
Navy Water Rate Calculation
A-8 Allocation of Net Rate Base
Commodity Capacity Capacity w/o
Navy
Actual
Customer
Actual
Customer w/o
Navy
Customer
Weighted
Meters &
Services Fire Fire w/o Navy Revenue As All Others
Net Plant in Service 55,838,614$ 6,267,331$ 24,910,170$ 1,501,017$ 7,560,657$ 827,091$ -$ 4,909,758$ 9,127,398$ 735,192$ -$ -$
Plus: Cash Working Capital
1/8 O&M Expense 1,599,960$ 18.47%37.57%1.59%8.42%0.87%0.01%4.44%7.35%0.78%20.51%0.00%100.00%As O&M Expenses
Prepayments - 18.47%37.57%1.59%8.42%0.87%0.01%4.44%7.35%0.78%20.51%0.00%100.00%As O&M Expenses
Inventories (materials and supplies) 1 733,619 10.38%46.34%3.28%12.21%1.81%0.00%9.17%15.20%1.61%0.00%0.00%100.00%As Plant in Service
Total Cash Working Capital 2,333,579$ 371,687$ 941,067$ 49,465$ 224,226$ 27,256$ 80$ 138,311$ 229,184$ 24,228$ 328,075$ -$
Less: Net Contributions in Aid of Construction 2 27,370,814$ 0.00%0.00%0.00%0.00%0.00%0.00%0.00%0.00%0.00%0.00%100.00%100.00%As All Others
Plus: Net Navy Capital Charges 3 (2,482,826) 0.00%0.00%0.00%0.00%0.00%0.00%0.00%0.00%0.00%0.00%100.00%100.00%As All Others
Net Total Contributions 24,887,988$ -$ -$ -$ -$ -$ -$ -$ -$ -$ -$ 24,887,988$
Total Net Plant in Service 6,639,018$ 25,851,237$ 1,550,482$ 7,784,883$ 854,347$ 80$ 5,048,069$ 9,356,583$ 759,420$ 328,075$ (24,887,988)$
Functions of Service 11.41%44.44%2.67%13.38%1.47%0.00%8.68%16.08%1.31%0.56%
Allocation of "As All Others"(2,840,392)$ (11,060,014)$ (663,347)$ (3,330,630)$ (365,518)$ (34)$ (2,159,731)$ (4,003,056)$ (324,905)$ (140,361)$ 24,887,988$
33,284,205$ 3,798,626$ 14,791,222$ 887,135$ 4,454,253$ 488,829$ 46$ 2,888,338$ 5,353,527$ 434,515$ 187,714$ -$
11.41%44.44%2.67%13.38%1.47%0.00%8.68%16.08%1.31%0.56%0.00%
1 2018 Comprehensive Annual Financial Report
2 Net book value of contributions in aid of construction is deducted from rate base
3 Net navy capital charges are deducted from contributions in aid to reflect that this capital payment was to compensate the City for capital costs, is not a "true" capital contribution and should not be used to reduce rate base
Net Rate Base
Net Rate Base Total Allocation BasisTotal
Functions of Service
Prepared by FCS GROUP
(425) 867-1802
Technical Appendix - Water Rate Calculation
8
City of Bremerton
Navy Water Rate Calculation
A-9 Allocation of Commodity Costs to Customers
Losses 2
8.30%
Retail Inside 1,499,007 ccf 124,389 ccf 1,623,396 ccf 52.23%
Retail Outside 771,846 ccf 64,048 ccf 835,894 ccf 26.89%
PSNS 599,332 ccf 49,733 ccf 649,065 ccf 20.88%
Firelines 0 ccf 0 ccf 0.00%
Total 2,870,185 ccf 238,171 ccf 3,108,356 ccf 100.00%
1 Class use provided by City for calendar year 2019 3,108,356 ccf 2017 Actual Production
2 Losses calculated to reach 2017 actual production
A-10 Allocations of Capacity Costs to Customers
Used to Allocate O&M
Retail Inside 3.07 mgd 6.57 mgd 8.22 mgd 54.73%8.22 mgd 64.42%
Retail Outside 1.58 mgd 2.79 mgd 3.49 mgd 23.26%3.49 mgd 27.38%
PSNS 1.23 mgd 1.82 mgd 2.27 mgd 15.15%0.00%
Firelines 3 6.86%8.19%
Total 5.88 mgd 11.17 mgd 13.99 mgd 100.00%11.72 mgd 100.00%
1 Class peak month water use 13.99 mgd 2019 Comp Plan Max Day
2 Peak day use estimated based on share of peak month
3 Firelines allocated share of capacity costs based on system fire flow requirement of 4000 gal/min x 240 min
Used to Allocate Rate Base and Depreciation
Retail Inside 6.57 mgd 8.55 mgd 50.13%8.55 mgd 64.64%
Retail Outside 2.79 mgd 3.63 mgd 21.30%3.63 mgd 27.47%
PSNS 3.85 mgd 22.58%0.00%
Firelines 2 5.99%7.88%
Total 16.03 mgd 100.00%12.18 mgd 100.00%
1 Class peak month water use 16.03 mgd 2028 Comp Plan Max Day
2 Firelines allocated share of capacity costs based on system fire flow requirement of 4000 gal/min x 240 min
3 Max day demand based on Navy requirements, system peak day from Table 2-5 of 2012 Bremerton Water System Plan
%Peak Day w/o
Navy
Peak Day w/o
Navy %%
Allocation of Commodity Costs Allocated
Production %
Allocation of Capacity Costs
2019 Peak Month
Peak Day
Use 2 %Peak Month
Use 1
Average Day
Use
Allocation of Capacity Costs
Reserved Capacity
Peak Month
Use 1
Peak Day
Use 3
Total Usage 1
Prepared by FCS GROUP
(425) 867-1802
Technical Appendix - Water Rate Calculation
9
City of Bremerton
Navy Water Rate Calculation
A-11 Allocations of Customer Costs to Customers
Allocation
Billing Units 1
Retail Inside 11,981 63.68%11,981 63.69%
Retail Outside 6,466 34.36%6,466 34.37%
PSNS 3 0.02%0.00%
Firelines 366 1.94%366 1.94%
Total 18,816 100.00%18,813 100.00%
1 Billing units provided by City as of 12/31/2017
Allocation
Billing Units
Retail Inside 11,981 1.0 11,981 64.05%
Retail Outside 6,466 1.0 6,466 34.57%
PSNS 3 25.0 75 0.40%
Firelines 366 0.5 183 0.98%
Total 18,816 18,705 100.00%
1 Weighting factors consistent with previous Agreement
Allocation
Billing Units
Retail Inside 11,981 100$ 1,198,117$ 64.63%
Retail Outside 6,466 100 646,608 34.88%
PSNS 3 3,000 9,000 0.49%
Firelines 366 - 0.00%
Total 18,816 1,853,725 100.00%
1 M&S costs consistent with previous Agreement
Allocation of Meters & Services Costs Meter Cost 1 Meters &
Services %
%
Allocation of Customer Costs - Actual %Customer w/o
Navy %
Allocation of Customer Costs - Weighted Weighting
Factor 1
Weighted
Customer
Prepared by FCS GROUP
(425) 867-1802
Technical Appendix - Water Rate Calculation
10
City of Bremerton
Navy Water Rate Calculation
A-12 Allocation of Fire Protection Costs to Customers
Allocation
Billing Units
Retail Inside 11,981 4,000 gpm 240 min 11,501,923 64.94%11,501,923 64.95%
Retail Outside 6,466 4,000 gpm 240 min 6,207,440 35.05%6,207,440 35.05%
PSNS 3 2,583 gpm 240 min 1,860 0.01%0.00%
Firelines 366 - 0.00%0.00%
Total 18,816 17,711,223 100.00%17,709,363 100.00%
1 Retail fire flow based on highest requirement for any zone, Navy fire flow based on highest requirement for any building
A-13 Allocation of Revenue Costs to Customers
Allocation
Revenue 1
Retail Inside 5,656,643$ 46.94%5,656,643$ 55.35%
Retail Outside 4,175,667 34.65%4,175,667 40.86%
PSNS 1,831,708 15.20%0.00%
Firelines 387,033 3.21%387,033 3.79%
Total 12,051,052$ 100.00%10,219,344$ 100.00%
1 2019 actual billed revenue by class
Fire Flow
Requirement
w/o Navy
%%
Allocation of Revenue Related Costs %Revenue
Without Navy %
Allocation of Fire Protection Costs Fire Flow 1 Duration 1
Fire Flow
Requirement
(kgal)
Prepared by FCS GROUP
(425) 867-1802
Technical Appendix - Water Rate Calculation
11
City of Bremerton
Navy Water Rate Calculation
A-14 Summary of O&M, Depreciation and Rate Base Allocations to Customers
Commodity Capacity Capacity w/o
Navy Actual Customer Actual Customer
w/o Navy
Customer
Weighted
Meters &
Services Fire Fire w/o Navy Revenue
Retail Inside 52.23%54.73%64.42%63.68%63.69%64.05%64.63%64.94%64.95%46.94%
Retail Outside 26.89%23.26%27.38%34.36%34.37%34.57%34.88%35.05%35.05%34.65%
PSNS 20.88%15.15%0.00%0.02%0.00%0.40%0.49%0.01%0.00%15.20%
Firelines 0.00%6.86%8.19%1.94%1.94%0.98%0.00%0.00%0.00%3.21%
Total 100.00%100.00%100.00%100.00%100.00%100.00%100.00%100.00%100.00%100.00%
Commodity Capacity Capacity w/o
Navy Actual Customer Actual Customer
w/o Navy
Customer
Weighted
Meters &
Services Fire Fire w/o Navy Revenue
Functionalized Operating Expenses 12,799,681$ 2,537,316$ 4,620,805$ 166,888$ 995,853$ 91,959$ 750$ 466,957$ 773,230$ 81,741$ 3,064,183$
Retail Inside 6,950,203$ 1,325,160$ 2,529,025$ 107,516$ 634,116$ 58,565$ 480$ 301,808$ 502,146$ 53,089$ 1,438,297$
Retail Outside 3,701,261 682,331 1,074,874 45,696 342,224 31,607 259 162,882 271,002 28,652 1,061,734
PSNS 1,697,902 529,825 699,824 - 159 - 3 2,267 81 - 465,743
Firelines 450,315 - 317,082 13,676 19,353 1,787 7 - - - 98,410
Total 12,799,681$ 2,537,316$ 4,620,805$ 166,888$ 995,853$ 91,959$ 750$ 466,957$ 773,230$ 81,741$ 3,064,183$
Commodity Capacity Capacity w/o
Navy Actual Customer Actual Customer
w/o Navy
Customer
Weighted
Meters &
Services Fire Fire w/o Navy Revenue
Retail Inside 52.23%50.13%64.64%63.68%63.69%64.05%64.63%64.94%64.95%46.94%
Retail Outside 26.89%21.30%27.47%34.36%34.37%34.57%34.88%35.05%35.05%34.65%
PSNS 20.88%22.58%0.00%0.02%0.00%0.40%0.49%0.01%0.00%15.20%
Firelines 0.00%5.99%7.88%1.94%1.94%0.98%0.00%0.00%0.00%3.21%
Total 100.00%100.00%100.00%100.00%100.00%100.00%100.00%100.00%100.00%100.00%
Commodity Capacity Capacity w/o
Navy Actual Customer Actual Customer
w/o Navy
Customer
Weighted
Meters &
Services Fire Fire w/o Navy Revenue
Functionalized Depreciation Expense 2,143,774$ 222,629$ 993,437$ 70,329$ 261,759$ 38,753$ -$ 196,571$ 325,849$ 34,447$ -$
Retail Inside 1,212,108$ 116,272$ 497,982$ 45,463$ 166,677$ 24,680$ -$ 127,050$ 211,611$ 22,373$ -$
Retail Outside 588,960 59,869 211,650 19,323 89,953 13,319 - 68,567 114,204 12,074 -
PSNS 271,827 46,488 224,309 - 42 - - 954 34 - -
Firelines 70,878 - 59,495 5,543 5,087 753 - - - - -
Total 2,143,774$ 222,629$ 993,437$ 70,329$ 261,759$ 38,753$ -$ 196,571$ 325,849$ 34,447$ -$
Commodity Capacity Capacity w/o
Navy Actual Customer Actual Customer
w/o Navy
Customer
Weighted
Meters &
Services Fire Fire w/o Navy Revenue
Retail Inside 52.23%50.13%64.64%63.68%63.69%64.05%64.63%64.94%64.95%46.94%
Retail Outside 26.89%21.30%27.47%34.36%34.37%34.57%34.88%35.05%35.05%34.65%
PSNS 20.88%22.58%0.00%0.02%0.00%0.40%0.49%0.01%0.00%15.20%
Firelines 0.00%5.99%7.88%1.94%1.94%0.98%0.00%0.00%0.00%3.21%
Total 100.00%100.00%100.00%100.00%100.00%100.00%100.00%100.00%100.00%100.00%
Commodity Capacity Capacity w/o
Navy Actual Customer Actual Customer
w/o Navy
Customer
Weighted
Meters &
Services Fire Fire w/o Navy Revenue
Functionalized Rate Base 33,284,205$ 3,798,626$ 14,791,222$ 887,135$ 4,454,253$ 488,829$ 46$ 2,888,338$ 5,353,527$ 434,515$ 187,714$
Retail Inside 18,833,230$ 1,983,903$ 7,414,434$ 573,476$ 2,836,277$ 311,315$ 29$ 1,866,818$ 3,476,658$ 282,210$ 88,111$
Retail Outside 9,216,389 1,021,521 3,151,248 243,736 1,530,702 168,013 16 1,007,497 1,876,307 152,305 65,042
PSNS 4,176,757 793,203 3,339,727 - 710 - 0 14,023 562 - 28,532
Firelines 1,057,828 - 885,812 69,922 86,563 9,501 0 - - - 6,029
Total 33,284,205$ 3,798,626$ 14,791,222$ 887,135$ 4,454,253$ 488,829$ 46$ 2,888,338$ 5,353,527$ 434,515$ 187,714$
Functions of Service
TotalAllocation of Rate Base
Functions of Service
Functions of Service
Summary of Customer Class Allocations
Operating Expenses
Allocation of Operating Expenses Total
Allocation of Depreciation Expense Total
Functions of Service
Summary of Customer Class Allocations
Depreciation Expense
Functions of Service
Summary of Customer Class Allocations
Rate Base
Functions of Service
Prepared by FCS GROUP
(425) 867-1802
Technical Appendix - Water Rate Calculation
12
City of Bremerton
Navy Water Rate Calculation
A-15 Calculation of Rate of Return on Rate Base
Wastewater 287,160$ 7,505,193$
Water 158,450 4,255,412
Combined Cost of Debt 1 445,610$ 11,760,605$ 3.79%1.50%5.29%
Cost of Borrowing 2 3.42%1.50%4.92%
5.29%
1 Weighted average of all non-subsidized outstanding debt for the combined utilities
2 Numerical average of at least three recent debt issues for municipal entities with similar terms and credit ratings, provided by DA Davidson Municipal Advisors
TotalCalculation of Navy Rate of Return 2019 Interest
(Non-Subsidized Debt)
2019 Outstanding Principal
(Non-Subsidized Debt)Cost of Debt Risk
Premium
Prepared by FCS GROUP
(425) 867-1802
Technical Appendix - Water Rate Calculation
13
City of Bremerton
Navy Water Rate Calculation
A-16 Calculation of Net Revenue Requirement
2019 Rate Revenue 1,831,708$
Less: O&M and Depreciation 1,969,729
Net Income (138,021)$
Rate Base 4,176,757$
% Rate of Return 5.29%
Return On Rate Base 220,909$
Total Net Revenue Requirement 2,190,638$
$ Difference over Existing Rates 358,930
% Difference over Existing Rates 19.6%
Net Revenue Requirement PSNS
Prepared by FCS GROUP
(425) 867-1802
Technical Appendix - Water Rate Calculation
14
City of Bremerton October 2020
Summary of U.S. Navy Contract Negotiations for Water and Wastewater Service page 21
TECHNICAL APPENDIX – WASTEWA TER
City of Bremerton
Navy Wastewater Rate Calculation
B-1 Allocation of Fixed Asset Original Cost and Accumulated Depreciation, Treatment Allocated on Navy Reserved Treatment Capacity
Flow-
Collection w/
Navy
Flow-
Collection w/o
Navy
Flow-
Treatment w/
Navy
Flow-
Treatment w/o
Navy
BOD w/o Navy TSS w/o Navy Customer Customer
Weighted Revenue Direct Navy As All Others
Collection 51,549,403$ 100.00%0.00%0.00%0.00%0.00%0.00%0.00%0.00%0.00%0.00%0.00%100.00%
Collection Laterals 2 3,018,737 0.00%100.00%0.00%0.00%0.00%0.00%0.00%0.00%0.00%0.00%0.00%100.00%
Treatment 47,249,172 0.00%0.00%0.00%50.00%15.50%15.00%0.00%0.00%0.00%19.50%0.00%100.00%
Pumping 25,096,890 100.00%0.00%0.00%0.00%0.00%0.00%0.00%0.00%0.00%0.00%0.00%100.00%
General Plant 3 4,334,537 0.00%0.00%0.00%0.00%0.00%0.00%0.00%0.00%0.00%0.00%100.00%100.00%
Total Utility Plant 131,248,739$ 76,646,293$ 3,018,737$ -$ 23,624,586$ 7,323,622$ 7,087,376$ -$ -$ -$ 9,213,589$ 4,334,537$ 131,248,739$
Functions of Service 60.39%2.38%0.00%18.61%5.77%5.58%0.00%0.00%0.00%7.26%100.00%
Allocation of "As All Others"2,617,722$ 103,100$ -$ 806,857$ 250,126$ 242,057$ -$ -$ -$ 314,674$ (4,334,537)$ -$
131,248,739$ 79,264,016$ 3,121,837$ -$ 24,431,443$ 7,573,747$ 7,329,433$ -$ -$ -$ 9,528,263$ -$ 131,248,739$
60.39%2.38%0.00%18.61%5.77%5.58%0.00%0.00%0.00%7.26%0.00%100.00%
Less: Accumulated Depreciation 1
Collection 18,271,241$ 100.00%0.00%0.00%0.00%0.00%0.00%0.00%0.00%0.00%0.00%0.00%100.00%
Collection Laterals 1,523,219 0.00%100.00%0.00%0.00%0.00%0.00%0.00%0.00%0.00%0.00%0.00%100.00%
Treatment 26,751,478 0.00%0.00%0.00%50.00%15.50%15.00%0.00%0.00%0.00%19.50%0.00%100.00%
Pumping 11,458,327 100.00%0.00%0.00%0.00%0.00%0.00%0.00%0.00%0.00%0.00%0.00%100.00%
General Plant 1,861,367 51.25%2.63%0.00%23.06%7.15%6.92%0.00%0.00%0.00%8.99%0.00%100.00%
Total Accumulated Depreciation 59,865,631$ 30,683,594$ 1,572,099$ -$ 13,804,969$ 4,279,540$ 4,141,491$ -$ -$ -$ 5,383,938$ -$
71,383,108$ 48,580,421$ 1,549,738$ -$ 10,626,475$ 3,294,207$ 3,187,942$ -$ -$ -$ 4,144,325$ -$
68.06%2.17%0.00%14.89%4.61%4.47%0.00%0.00%0.00%5.81%0.00%
1 Original cost of assets and accumulated depreciation from City fixed asset schedule as of 12/31/2016
2 The City and Navy agreed that the Navy does not benefit from collection laterals and should not be allocated any of these facilities
3 General plant allocated as all other plant in service
Net Plant in Service
Plant in Service 1 Total
Functions of Service
Total
Total Plant in Service
Prepared by FCS GROUP
(425) 867-1802
Technical Appendix - Wastewater Rate Calculation
1
City of Bremerton
Navy Wastewater Rate Calculation
B-2 Allocation of Fixed Asset Original Cost and Accumulated Depreciation, Treatment Allocated on Actual Flow
Flow-
Collection w/
Navy
Flow-
Collection w/o
Navy
Flow-
Treatment w/
Navy
Flow-
Treatment w/o
Navy
BOD w/o Navy TSS w/o Navy Customer Customer
Weighted Revenue Direct Navy As All Others
Collection 51,549,403$ 100.00%0.00%0.00%0.00%0.00%0.00%0.00%0.00%0.00%0.00%0.00%100.00%
Collection Laterals 2 3,018,737 0.00%100.00%0.00%0.00%0.00%0.00%0.00%0.00%0.00%0.00%0.00%100.00%
Treatment 47,249,172 0.00%0.00%0.00%54.57%16.92%16.37%0.00%0.00%0.00%12.13%0.00%100.00%
Pumping 25,096,890 100.00%0.00%0.00%0.00%0.00%0.00%0.00%0.00%0.00%0.00%0.00%100.00%
General Plant 3 4,334,537 0.00%0.00%0.00%0.00%0.00%0.00%0.00%0.00%0.00%0.00%100.00%100.00%
Total Utility Plant 131,248,739$ 76,646,293$ 3,018,737$ -$ 25,786,024$ 7,993,667$ 7,735,807$ -$ -$ -$ 5,733,673$ 4,334,537$ 131,248,739$
Functions of Service 60.39%2.38%0.00%20.32%6.30%6.10%0.00%0.00%0.00%4.52%100.00%
Allocation of "As All Others"2,617,722$ 103,100$ -$ 880,677$ 273,010$ 264,203$ -$ -$ -$ 195,824$ (4,334,537)$ -$
131,248,739$ 79,264,016$ 3,121,837$ -$ 26,666,701$ 8,266,677$ 8,000,010$ -$ -$ -$ 5,929,497$ -$ 131,248,739$
60.39%2.38%0.00%20.32%6.30%6.10%0.00%0.00%0.00%4.52%0.00%100.00%
Less: Accumulated Depreciation 1
Collection 18,271,241$ 100.00%0.00%0.00%0.00%0.00%0.00%0.00%0.00%0.00%0.00%0.00%100.00%
Collection Laterals 1,523,219 0.00%100.00%0.00%0.00%0.00%0.00%0.00%0.00%0.00%0.00%0.00%100.00%
Treatment 26,751,478 0.00%0.00%0.00%54.57%16.92%16.37%0.00%0.00%0.00%12.13%0.00%100.00%
Pumping 11,458,327 100.00%0.00%0.00%0.00%0.00%0.00%0.00%0.00%0.00%0.00%0.00%100.00%
General Plant 1,861,367 51.25%2.63%0.00%25.17%7.80%7.55%0.00%0.00%0.00%5.60%0.00%100.00%
Total Accumulated Depreciation 59,865,631$ 30,683,594$ 1,572,099$ -$ 15,068,000$ 4,671,080$ 4,520,400$ -$ -$ -$ 3,350,458$ -$
71,383,108$ 48,580,421$ 1,549,738$ -$ 11,598,702$ 3,595,598$ 3,479,611$ -$ -$ -$ 2,579,039$ -$
68.06%2.17%0.00%16.25%5.04%4.87%0.00%0.00%0.00%3.61%0.00%
1 Original cost of assets and accumulated depreciation from City fixed asset schedule as of 12/31/2016
2 The City and Navy agreed that the Navy does not benefit from collection laterals and should not be allocated any of these facilities
3 General plant allocated as all other plant in service
Net Plant in Service
Plant in Service 1 Total
Functions of Service
Total
Total Plant in Service
Prepared by FCS GROUP
(425) 867-1802
Technical Appendix - Wastewater Rate Calculation
2
City of Bremerton
Navy Wastewater Rate Calculation
B-3 Allocation of Operating Expenses and Depreciation
Flow-Collection
w/ Navy
Flow-Collection
w/o Navy
Flow-Treatment
w/ Navy
Flow-Treatment
w/o Navy BOD w/o Navy TSS w/o Navy Customer Customer
Weighted Revenue Direct Navy As All Others
Taxes 3
State Taxes 313,746$ 0.00%0.00%0.00%0.00%0.00%0.00%0.00%0.00%100.00%0.00%0.00%100.00%As Revenue
City Taxes 3,307,408 0.00%0.00%0.00%0.00%0.00%0.00%0.00%0.00%100.00%0.00%0.00%100.00%As Revenue
Administration
Salaries & Wages Regular 187,550$ 60.39%2.38%0.00%20.32%6.30%6.10%0.00%0.00%0.00%4.52%0.00%100.00%As Plant in Service (Actual)
Overtime Pay 1,500 60.39%2.38%0.00%20.32%6.30%6.10%0.00%0.00%0.00%4.52%0.00%100.00%As Plant in Service (Actual)
Personnel Benefits 48,730 60.39%2.38%0.00%20.32%6.30%6.10%0.00%0.00%0.00%4.52%0.00%100.00%As Plant in Service (Actual)
Medical & Dental Benefits 27,025 60.39%2.38%0.00%20.32%6.30%6.10%0.00%0.00%0.00%4.52%0.00%100.00%As Plant in Service (Actual)
Office & Operating Supply 5,000 60.39%2.38%0.00%20.32%6.30%6.10%0.00%0.00%0.00%4.52%0.00%100.00%As Plant in Service (Actual)
Small Tools, Equipment, & Furniture 500 60.39%2.38%0.00%20.32%6.30%6.10%0.00%0.00%0.00%4.52%0.00%100.00%As Plant in Service (Actual)
Computer Related Items 1,500 60.39%2.38%0.00%20.32%6.30%6.10%0.00%0.00%0.00%4.52%0.00%100.00%As Plant in Service (Actual)
Food and Beverage 500 60.39%2.38%0.00%20.32%6.30%6.10%0.00%0.00%0.00%4.52%0.00%100.00%As Plant in Service (Actual)
Professional Services Ext 85,000 60.39%2.38%0.00%20.32%6.30%6.10%0.00%0.00%0.00%4.52%0.00%100.00%As Plant in Service (Actual)
Intergovernmental Service 1,000 60.39%2.38%0.00%20.32%6.30%6.10%0.00%0.00%0.00%4.52%0.00%100.00%As Plant in Service (Actual)
Postage 700 60.39%2.38%0.00%20.32%6.30%6.10%0.00%0.00%0.00%4.52%0.00%100.00%As Plant in Service (Actual)
Travel 1,000 60.39%2.38%0.00%20.32%6.30%6.10%0.00%0.00%0.00%4.52%0.00%100.00%As Plant in Service (Actual)
Training 500 60.39%2.38%0.00%20.32%6.30%6.10%0.00%0.00%0.00%4.52%0.00%100.00%As Plant in Service (Actual)
Equipment Rental 500 60.39%2.38%0.00%20.32%6.30%6.10%0.00%0.00%0.00%4.52%0.00%100.00%As Plant in Service (Actual)
Information Tech− Ifd 10,421 60.39%2.38%0.00%20.32%6.30%6.10%0.00%0.00%0.00%4.52%0.00%100.00%As Plant in Service (Actual)
Miscellaneous 2,000 60.39%2.38%0.00%20.32%6.30%6.10%0.00%0.00%0.00%4.52%0.00%100.00%As Plant in Service (Actual)
Sewer System
Salaries & Wages Regular 542,100$ 60.39%2.38%0.00%20.32%6.30%6.10%0.00%0.00%0.00%4.52%0.00%100.00%As Plant in Service (Actual)
Stand By 11,000 60.39%2.38%0.00%20.32%6.30%6.10%0.00%0.00%0.00%4.52%0.00%100.00%As Plant in Service (Actual)
Overtime Pay 8,000 60.39%2.38%0.00%20.32%6.30%6.10%0.00%0.00%0.00%4.52%0.00%100.00%As Plant in Service (Actual)
Personnel Benefits 137,200 60.39%2.38%0.00%20.32%6.30%6.10%0.00%0.00%0.00%4.52%0.00%100.00%As Plant in Service (Actual)
Medical & Dental Benefits 118,800 60.39%2.38%0.00%20.32%6.30%6.10%0.00%0.00%0.00%4.52%0.00%100.00%As Plant in Service (Actual)
Office & Operating Supply 35,000 60.39%2.38%0.00%20.32%6.30%6.10%0.00%0.00%0.00%4.52%0.00%100.00%As Plant in Service (Actual)
Utility Inventory 5,000 60.39%2.38%0.00%20.32%6.30%6.10%0.00%0.00%0.00%4.52%0.00%100.00%As Plant in Service (Actual)
Fuel Consumed 19,246 60.39%2.38%0.00%20.32%6.30%6.10%0.00%0.00%0.00%4.52%0.00%100.00%As Plant in Service (Actual)
Small Tools, Eq & Furn 25,000 60.39%2.38%0.00%20.32%6.30%6.10%0.00%0.00%0.00%4.52%0.00%100.00%As Plant in Service (Actual)
Computer Related Items 2,000 60.39%2.38%0.00%20.32%6.30%6.10%0.00%0.00%0.00%4.52%0.00%100.00%As Plant in Service (Actual)
Professional Services Ext 5,000 60.39%2.38%0.00%20.32%6.30%6.10%0.00%0.00%0.00%4.52%0.00%100.00%As Plant in Service (Actual)
Professional Services Ifd 1,032,976 60.39%2.38%0.00%20.32%6.30%6.10%0.00%0.00%0.00%4.52%0.00%100.00%As Plant in Service (Actual)
Other Services 1,000 60.39%2.38%0.00%20.32%6.30%6.10%0.00%0.00%0.00%4.52%0.00%100.00%As Plant in Service (Actual)
Telecommunications 2,000 60.39%2.38%0.00%20.32%6.30%6.10%0.00%0.00%0.00%4.52%0.00%100.00%As Plant in Service (Actual)
Telecommunications Ifd 1,000 60.39%2.38%0.00%20.32%6.30%6.10%0.00%0.00%0.00%4.52%0.00%100.00%As Plant in Service (Actual)
Postage 500 60.39%2.38%0.00%20.32%6.30%6.10%0.00%0.00%0.00%4.52%0.00%100.00%As Plant in Service (Actual)
Travel 1,000 60.39%2.38%0.00%20.32%6.30%6.10%0.00%0.00%0.00%4.52%0.00%100.00%As Plant in Service (Actual)
Training 1,000 60.39%2.38%0.00%20.32%6.30%6.10%0.00%0.00%0.00%4.52%0.00%100.00%As Plant in Service (Actual)
Land and Building - IFD 43,776 60.39%2.38%0.00%20.32%6.30%6.10%0.00%0.00%0.00%4.52%0.00%100.00%As Plant in Service (Actual)
Equipment Rental 5,000 60.39%2.38%0.00%20.32%6.30%6.10%0.00%0.00%0.00%4.52%0.00%100.00%As Plant in Service (Actual)
Equipment − Interfund 312,997 60.39%2.38%0.00%20.32%6.30%6.10%0.00%0.00%0.00%4.52%0.00%100.00%As Plant in Service (Actual)
Interfund Insurance Prem 390,264 60.39%2.38%0.00%20.32%6.30%6.10%0.00%0.00%0.00%4.52%0.00%100.00%As Plant in Service (Actual)
Garbage/Waste Disposal 6,000 60.39%2.38%0.00%20.32%6.30%6.10%0.00%0.00%0.00%4.52%0.00%100.00%As Plant in Service (Actual)
Information Tech− Ifd 61,802 60.39%2.38%0.00%20.32%6.30%6.10%0.00%0.00%0.00%4.52%0.00%100.00%As Plant in Service (Actual)
Equipment Repair & Maint 10,000 60.39%2.38%0.00%20.32%6.30%6.10%0.00%0.00%0.00%4.52%0.00%100.00%As Plant in Service (Actual)
Equipment Repair − Ifd 33,499 60.39%2.38%0.00%20.32%6.30%6.10%0.00%0.00%0.00%4.52%0.00%100.00%As Plant in Service (Actual)
Other Improvements 100,000 60.39%2.38%0.00%20.32%6.30%6.10%0.00%0.00%0.00%4.52%0.00%100.00%As Plant in Service (Actual)
Miscellaneous 5,000 60.39%2.38%0.00%20.32%6.30%6.10%0.00%0.00%0.00%4.52%0.00%100.00%As Plant in Service (Actual)
Dues & Subscriptions 30,500 60.39%2.38%0.00%20.32%6.30%6.10%0.00%0.00%0.00%4.52%0.00%100.00%As Plant in Service (Actual)
Allocation Basis 2Operating Expenses 1 Total
Functions of Service
Total
Prepared by FCS GROUP
(425) 867-1802
Technical Appendix - Wastewater Rate Calculation
3
City of Bremerton
Navy Wastewater Rate Calculation
B-3 Allocation of Operating Expenses and Depreciation
Flow-Collection
w/ Navy
Flow-Collection
w/o Navy
Flow-Treatment
w/ Navy
Flow-Treatment
w/o Navy BOD w/o Navy TSS w/o Navy Customer Customer
Weighted Revenue Direct Navy As All Others Allocation Basis 2Operating Expenses 1 Total
Functions of Service
Total
WWTP
Salaries & Wages Regular 1,538,200$ 60.39%2.38%0.00%20.32%6.30%6.10%0.00%0.00%0.00%4.52%0.00%100.00%As Plant in Service (Actual)
Stand By 74,000 60.39%2.38%0.00%20.32%6.30%6.10%0.00%0.00%0.00%4.52%0.00%100.00%As Plant in Service (Actual)
Overtime Pay 80,000 60.39%2.38%0.00%20.32%6.30%6.10%0.00%0.00%0.00%4.52%0.00%100.00%As Plant in Service (Actual)
Personnel Benefits 399,000 60.39%2.38%0.00%20.32%6.30%6.10%0.00%0.00%0.00%4.52%0.00%100.00%As Plant in Service (Actual)
Medical & Dental Benefits 283,700 60.39%2.38%0.00%20.32%6.30%6.10%0.00%0.00%0.00%4.52%0.00%100.00%As Plant in Service (Actual)
Office & Operating Supply 655,000 60.39%2.38%0.00%20.32%6.30%6.10%0.00%0.00%0.00%4.52%0.00%100.00%As Plant in Service (Actual)
Utility Inventory 1,500 60.39%2.38%0.00%20.32%6.30%6.10%0.00%0.00%0.00%4.52%0.00%100.00%As Plant in Service (Actual)
Fuel Consumed 23,803 60.39%2.38%0.00%20.32%6.30%6.10%0.00%0.00%0.00%4.52%0.00%100.00%As Plant in Service (Actual)
Items Purch For Inventory 70,000 60.39%2.38%0.00%20.32%6.30%6.10%0.00%0.00%0.00%4.52%0.00%100.00%As Plant in Service (Actual)
Small Tools, Eq & Furn 140,000 60.39%2.38%0.00%20.32%6.30%6.10%0.00%0.00%0.00%4.52%0.00%100.00%As Plant in Service (Actual)
Computer Related Items 72,000 60.39%2.38%0.00%20.32%6.30%6.10%0.00%0.00%0.00%4.52%0.00%100.00%As Plant in Service (Actual)
Food & Beverage 2,000 60.39%2.38%0.00%20.32%6.30%6.10%0.00%0.00%0.00%4.52%0.00%100.00%As Plant in Service (Actual)
Professional Services Ext 265,000 60.39%2.38%0.00%20.32%6.30%6.10%0.00%0.00%0.00%4.52%0.00%100.00%As Plant in Service (Actual)
Other Services 5,000 60.39%2.38%0.00%20.32%6.30%6.10%0.00%0.00%0.00%4.52%0.00%100.00%As Plant in Service (Actual)
Intergovernmental Service 42,000 60.39%2.38%0.00%20.32%6.30%6.10%0.00%0.00%0.00%4.52%0.00%100.00%As Plant in Service (Actual)
Telecommunications 120,000 60.39%2.38%0.00%20.32%6.30%6.10%0.00%0.00%0.00%4.52%0.00%100.00%As Plant in Service (Actual)
Telecommunications Ifd 3,674 60.39%2.38%0.00%20.32%6.30%6.10%0.00%0.00%0.00%4.52%0.00%100.00%As Plant in Service (Actual)
Postage 7,000 60.39%2.38%0.00%20.32%6.30%6.10%0.00%0.00%0.00%4.52%0.00%100.00%As Plant in Service (Actual)
Travel 15,000 60.39%2.38%0.00%20.32%6.30%6.10%0.00%0.00%0.00%4.52%0.00%100.00%As Plant in Service (Actual)
Training 40,000 60.39%2.38%0.00%20.32%6.30%6.10%0.00%0.00%0.00%4.52%0.00%100.00%As Plant in Service (Actual)
Equipment Rental 20,000 60.39%2.38%0.00%20.32%6.30%6.10%0.00%0.00%0.00%4.52%0.00%100.00%As Plant in Service (Actual)
Equipment - Interfund 100,000 60.39%2.38%0.00%20.32%6.30%6.10%0.00%0.00%0.00%4.52%0.00%100.00%As Plant in Service (Actual)
Natural Gas 25,000 60.39%2.38%0.00%20.32%6.30%6.10%0.00%0.00%0.00%4.52%0.00%100.00%As Plant in Service (Actual)
Electricity 620,000 0.00%0.00%100.00%0.00%0.00%0.00%0.00%0.00%0.00%0.00%0.00%100.00%As Flow w/ Navy
Water/Sewer/Stormwater 75,000 60.39%2.38%0.00%20.32%6.30%6.10%0.00%0.00%0.00%4.52%0.00%100.00%As Plant in Service (Actual)
Garbage/Waste Disposal 47,000 60.39%2.38%0.00%20.32%6.30%6.10%0.00%0.00%0.00%4.52%0.00%100.00%As Plant in Service (Actual)
Information Tech− Ifd 79,441 60.39%2.38%0.00%20.32%6.30%6.10%0.00%0.00%0.00%4.52%0.00%100.00%As Plant in Service (Actual)
Equipment Repair & Maint 135,000 60.39%2.38%0.00%20.32%6.30%6.10%0.00%0.00%0.00%4.52%0.00%100.00%As Plant in Service (Actual)
Equipment Repair − Ifd 39,076 60.39%2.38%0.00%20.32%6.30%6.10%0.00%0.00%0.00%4.52%0.00%100.00%As Plant in Service (Actual)
Structures & Grounds 75,000 60.39%2.38%0.00%20.32%6.30%6.10%0.00%0.00%0.00%4.52%0.00%100.00%As Plant in Service (Actual)
Miscellaneous 15,000 60.39%2.38%0.00%20.32%6.30%6.10%0.00%0.00%0.00%4.52%0.00%100.00%As Plant in Service (Actual)
Dues & Subscriptions 6,500 60.39%2.38%0.00%20.32%6.30%6.10%0.00%0.00%0.00%4.52%0.00%100.00%As Plant in Service (Actual)
Customer Service
Salaries & Wages Regular 107,800$ 0.00%0.00%0.00%0.00%0.00%0.00%100.00%0.00%0.00%0.00%0.00%100.00%All to Customer
Overtime Pay 10,000 0.00%0.00%0.00%0.00%0.00%0.00%100.00%0.00%0.00%0.00%0.00%100.00%All to Customer
Personnel Benefits 28,200 0.00%0.00%0.00%0.00%0.00%0.00%100.00%0.00%0.00%0.00%0.00%100.00%All to Customer
Medical & Dental Benefits 18,800 0.00%0.00%0.00%0.00%0.00%0.00%100.00%0.00%0.00%0.00%0.00%100.00%All to Customer
Office & Operating Supply 25,000 60.39%2.38%0.00%20.32%6.30%6.10%0.00%0.00%0.00%4.52%0.00%100.00%As Plant in Service (Actual)
Small Tools, Eq & Furn 500 60.39%2.38%0.00%20.32%6.30%6.10%0.00%0.00%0.00%4.52%0.00%100.00%As Plant in Service (Actual)
Computer Related Items 1,500 60.39%2.38%0.00%20.32%6.30%6.10%0.00%0.00%0.00%4.52%0.00%100.00%As Plant in Service (Actual)
Professional Services Ext 12,000 60.39%2.38%0.00%20.32%6.30%6.10%0.00%0.00%0.00%4.52%0.00%100.00%As Plant in Service (Actual)
Postage 50,000 0.00%0.00%0.00%0.00%0.00%0.00%100.00%0.00%0.00%0.00%0.00%100.00%All to Customer
Travel 1,500 60.39%2.38%0.00%20.32%6.30%6.10%0.00%0.00%0.00%4.52%0.00%100.00%As Plant in Service (Actual)
Training 3,000 60.39%2.38%0.00%20.32%6.30%6.10%0.00%0.00%0.00%4.52%0.00%100.00%As Plant in Service (Actual)
Equipment Rental 750 60.39%2.38%0.00%20.32%6.30%6.10%0.00%0.00%0.00%4.52%0.00%100.00%As Plant in Service (Actual)
Information Tech− Ifd 6,730 60.39%2.38%0.00%20.32%6.30%6.10%0.00%0.00%0.00%4.52%0.00%100.00%As Plant in Service (Actual)
Miscellaneous 1,000 60.39%2.38%0.00%20.32%6.30%6.10%0.00%0.00%0.00%4.52%0.00%100.00%As Plant in Service (Actual)
Depreciation Expense 4 3,694,103$ 60.39%2.38%0.00%18.61%5.77%5.58%0.00%0.00%0.00%7.26%0.00%100.00%As Plant in Service (Capacity)
Total Operating Expenses 15,976,017$ 6,957,221$ 274,012$ 620,000$ 2,277,697$ 706,086$ 683,309$ 214,800$ -$ 3,621,154$ 621,738$ -$ 15,976,017$
Functions of Service 43.55%1.72%3.88%14.26%4.42%4.28%1.34%0.00%22.67%3.89%100.00%
Allocation of "As All Others"-$ -$ -$ -$ -$ -$ -$ -$ -$ -$ -$ -$
15,976,017$ 6,957,221$ 274,012$ 620,000$ 2,277,697$ 706,086$ 683,309$ 214,800$ -$ 3,621,154$ 621,738$ -$ 15,976,017$
100.00%43.55%1.72%3.88%14.26%4.42%4.28%1.34%0.00%22.67%3.89%0.00%100.00%
1 Operating expenses sourced from detailed 2020 Wastewater Expenditure Budget
2 Operating expenses allocated based on the utility function(s) most likely driving that cost
3 Taxes allocated based on 2019 actual wastewater revenue
4 2017 Depreciation Expense
Total Operating Expenses
Prepared by FCS GROUP
(425) 867-1802
Technical Appendix - Wastewater Rate Calculation
4
City of Bremerton
Navy Wastewater Rate Calculation
B-4 Calculation of Net Contributions in aid of Construction
Pre-2004 1 33,483,077$ 21,337,173$ -$ -$
2004 55,757 41,260 - -
2005 - - 167,068 126,972
2006 67,758 52,851 644,654 502,830
2007 946,857 757,485 1,194,615 955,692
2008 512,590 420,324 1,062,420 871,185
2009 748,743 628,944 935,986 786,228
2010 80,729 69,427 4,487 3,859
2011 453,954 399,479 - -
2012 400,176 360,159 - -
2013 1,130,179 1,039,764 772,383 710,592
2014 - - - -
2015 319,900 307,104 - -
2016 - - - -
2017 1,272,894 1,272,894 - -
Total 39,472,613$ 26,686,865$ 4,781,613$ 3,957,357$
1 Pre-2004 contributions depreciated equal to percentage of total collection system depreciated
2 Other contributions include grants and loan forgiveness
B-5 Calculation of Net Navy Capital Charges
Net Navy capital charges 1996 5,600,796$ 3,009,812$ 2,590,984$
Navy contribution to the WWTP 1996 3,179,199 1,708,470 1,470,729
Total 8,779,995$ 4,718,282$ 4,061,713$
1 Depreciated by 2.56% of original cost per year based on 2008 Agreement methodology
System Acceptances Other Contributions 2
Original Cost Net ValueOriginal Cost Net ValueYear
Description Year Original Contract
Amount
Total
Depreciation 1 Net Value
Prepared by FCS GROUP
(425) 867-1802
Technical Appendix - Wastewater Rate Calculation
5
City of Bremerton
Navy Wastewater Rate Calculation
B-6 Allocation of Net Rate Base
Flow-
Collection w/
Navy
Flow-
Collection
w/o Navy
Flow-
Treatment w/
Navy
Flow-
Treatment
w/o Navy
BOD w/o
Navy TSS w/o Navy Customer Customer
Weighted Revenue Direct Navy As All Others
Net Plant in Service 71,383,108$ 48,580,421$ 1,549,738$ -$ 10,626,475$ 3,294,207$ 3,187,942$ -$ -$ -$ 4,144,325$ -$
Plus: Cash Working Capital
1/8 O&M Expense 1,535,239$ 43.55%1.72%3.88%14.26%4.42%4.28%1.34%0.00%22.67%3.89%0.00%100.00%As O&M Expenses
Prepayments - 43.55%1.72%3.88%14.26%4.42%4.28%1.34%0.00%22.67%3.89%0.00%100.00%As O&M Expenses
Inventories (materials and supplies) 1 577,021 60.39%2.38%0.00%18.61%5.77%5.58%0.00%0.00%0.00%7.26%0.00%100.00%As Plant in Service
Total Cash Working Capital 2,112,260$ 1,017,040$ 40,056$ 59,580$ 326,289$ 101,150$ 97,887$ 20,642$ -$ 347,980$ 101,637$ -$
Less: Net Contributions in Aid of Construction 2 30,644,222$ 0.00%0.00%0.00%0.00%0.00%0.00%0.00%0.00%0.00%0.00%100.00%100.00%As All Others
Less: Navy Capital Contributions 3 1,470,729 0.00%0.00%0.00%0.00%0.00%0.00%0.00%0.00%0.00%100.00%0.00%100.00%Direct Navy
Plus: Net Navy Capital Charges 4 (2,590,984) 0.00%0.00%0.00%0.00%0.00%0.00%0.00%0.00%0.00%0.00%100.00%100.00%As All Others
Net Total Contributions 29,523,967$ -$ -$ -$ -$ -$ -$ -$ -$ -$ 1,470,729$ 28,053,238$
Total Net Plant in Service 49,597,461$ 1,589,794$ 59,580$ 10,952,763$ 3,395,357$ 3,285,829$ 20,642$ -$ 347,980$ 2,775,233$ (28,053,238)$
Functions of Service 68.86%2.21%0.08%15.21%4.71%4.56%0.03%0.00%0.48%3.85%
Allocation of "As All Others"(19,317,964)$ (619,217)$ (23,206)$ (4,266,047)$ (1,322,474)$ (1,279,814)$ (8,040)$ -$ (135,537)$ (1,080,939)$ 28,053,238$
43,971,401$ 30,279,498$ 970,577$ 36,374$ 6,686,717$ 2,072,882$ 2,006,015$ 12,602$ -$ 212,444$ 1,694,293$ -$
68.86%2.21%0.08%15.21%4.71%4.56%0.03%0.00%0.48%3.85%0.00%
1 2018 Comprehensive Annual Financial Report
2 Net book value of contributions in aid of construction is deducted from rate base
3 Contributions in aid of contruction assigned to the Navy include the amortized amount for the Navy's capital contribution to the WWTP and WWTP improvements = Navy's "true" capital contribution
4 Net navy capital charges are deducted from contributions in aid to reflect that this capital payment was to compensate the City for capital costs, is not a "true" capital contribution and should not be used to reduce rate base
Net Rate Base
Net Rate Base Total
Functions of Service
Allocation BasisTotal
Prepared by FCS GROUP
(425) 867-1802
Technical Appendix - Wastewater Rate Calculation
6
City of Bremerton
Navy Wastewater Rate Calculation
B-7 Allocations of Flow Costs to Customers
Used to Allocate O&M 5.86 mgd
I&I 2
38%
Inside City
Single Family 408,962 ccf 330,080 ccf 126,515 456,594 ccf 0.94 mgd 1.65 mgd 34.78%1.65 mgd 39.58%
Multi Family 317,564 ccf 256,311 ccf 98,240 354,551 ccf 0.73 mgd 1.28 mgd 27.01%1.28 mgd 30.74%
Commercial I 169,625 ccf 136,907 ccf 52,474 189,381 ccf 0.39 mgd 0.68 mgd 14.43%0.68 mgd 16.42%
Commercial II 29,760 ccf 24,020 ccf 9,206 33,226 ccf 0.07 mgd 0.12 mgd 2.53%0.12 mgd 2.88%
Commercial III 53,801 ccf 43,424 ccf 16,644 60,067 ccf 0.12 mgd 0.22 mgd 4.58%0.22 mgd 5.21%
Outside City
Single Family 39,402 ccf 31,802 ccf 12,189 43,991 ccf 0.09 mgd 0.16 mgd 3.35%0.16 mgd 3.81%
Multi Family 7,920 ccf 6,392 ccf 2,450 8,842 ccf 0.02 mgd 0.03 mgd 0.67%0.03 mgd 0.77%
Commercial I 5,226 ccf 4,218 ccf 1,617 5,835 ccf 0.01 mgd 0.02 mgd 0.44%0.02 mgd 0.51%
Commercial II 202 ccf 163 ccf 62 226 ccf 0.00 mgd 0.00 mgd 0.02%0.00 mgd 0.02%
Commercial III 671 ccf 542 ccf 208 749 ccf 0.00 mgd 0.00 mgd 0.06%0.00 mgd 0.06%
PSNS
Main 280,068 ccf 280,068 ccf 280,068 ccf 0.57 mgd 0.57 mgd 12.13%0.00%
Total 1,313,201 ccf 1,113,926 ccf 319,605 1,433,531 ccf 2.94 mgd 4.73 mgd 100.00%4.16 mgd 100.00%
1 Class flows provided by City for calendar year 2017 for retail, 2019 for Navy 2019 Actual Flow at Treatment Plant 4.73 mgd
2 Navy not allocated I&I because flow is metered
3 Retail flow statistics adjusted to 2019 actual treated flow
Used to Allocate Rate Base and Depreciation
I&I
38%
Inside City
Single Family 330,080 ccf 126,515 456,594 ccf 0.94 mgd 4.94 mgd 31.87%4.94 mgd 39.58%
Multi Family 256,311 ccf 98,240 354,551 ccf 0.73 mgd 3.84 mgd 24.75%3.84 mgd 30.74%
Commercial I 136,907 ccf 52,474 189,381 ccf 0.39 mgd 2.05 mgd 13.22%2.05 mgd 16.42%
Commercial II 24,020 ccf 9,206 33,226 ccf 0.07 mgd 0.36 mgd 2.32%0.36 mgd 2.88%
Commercial III 43,424 ccf 16,644 60,067 ccf 0.12 mgd 0.65 mgd 4.19%0.65 mgd 5.21%
Outside City
Single Family 31,802 ccf 12,189 43,991 ccf 0.09 mgd 0.48 mgd 3.07%0.48 mgd 3.81%
Multi Family 6,392 ccf 2,450 8,842 ccf 0.02 mgd 0.10 mgd 0.62%0.10 mgd 0.77%
Commercial I 4,218 ccf 1,617 5,835 ccf 0.01 mgd 0.06 mgd 0.41%0.06 mgd 0.51%
Commercial II 163 ccf 62 226 ccf 0.00 mgd 0.00 mgd 0.02%0.00 mgd 0.02%
Commercial III 542 ccf 208 749 ccf 0.00 mgd 0.01 mgd 0.05%0.01 mgd 0.06%
PSNS
Main 280,068 ccf 3.02 mgd 3.02 mgd 19.48%0.00%
Total 1,113,926 ccf 319,605 1,153,463 ccf 5.38 mgd 15.50 mgd 100.00%12.48 mgd 100.00%
1 Navy flow based on not to exceed daily average flow service requirement WWTP Max Month Capacity 15.50 mgd
retail classes allocated share of remaining capacity
Allocation of Flow Costs
Reserved Capacity 2019 Flow
Adjusted Flow
without Navy
%Adjusted Flow
without Navy
Total Flow with
I&I (ccf)
Annual Flow
(mgd)
Flow Adjusted
to Max Month 1 %
%Allocation of Flow Costs
2019 Flow
Total Flow with
I&I (ccf)
Annual Flow
(mgd)
Flow Adjusted
to Actual 3 %2017 Flow 1 Adjusted to
2019 Flow
Prepared by FCS GROUP
(425) 867-1802
Technical Appendix - Wastewater Rate Calculation
7
City of Bremerton
Navy Wastewater Rate Calculation
B-8 Allocations of Customer Costs to Customers
Allocation
Billing Units 1
Inside City
Single Family 8,060 44.08%1.0 8,060 41.80%
Multi Family 8,472 46.33%1.0 8,472 43.94%
Commercial I 675 3.69%2.0 1,350 7.00%
Commercial II 57 0.31%2.5 143 0.74%
Commercial III 115 0.63%2.0 231 1.20%
Outside City
Single Family 694 3.80%1.0 694 3.60%
Multi Family 161 0.88%1.0 161 0.84%
Commercial I 43 0.24%2.0 86 0.45%
Commercial II 1 0.01%2.5 3 0.01%
Commercial III 4 0.02%2.0 8 0.04%
PSNS
Main 3 0.02%25.0 75 0.39%
Total 18,286 100.00%19,282 100.00%
1 Billing unit counts provided by City as of 12/31/2017
2 Weighting factors consistent with previous Agreement
B-9 Allocation of Revenue Costs to Customers
Inside City
Single Family 5,005,766$ 5,165,830$ 34.48%5,165,830$ 40.32%
Multi Family 4,367,252 4,506,898 30.09%4,506,898 35.17%
Commercial I 1,161,042 1,198,167 8.00%1,198,167 9.35%
Commercial II 253,517 261,624 1.75%261,624 2.04%
Commercial III 390,777 403,272 2.69%403,272 3.15%
Outside City
Single Family 678,777 962,499$ 6.43%962,499$ 7.51%
Multi Family 133,307 189,028 1.26%189,028 1.48%
Commercial I 76,284 108,171 0.72%108,171 0.84%
Commercial II 2,760 3,914 0.03%3,914 0.03%
Commercial III 9,770 13,854 0.09%13,854 0.11%
PSNS
Main 2,199,437 2,167,003 14.47%0.00%
Total 14,278,690$ 14,980,261$ 100.00%12,813,258$ 100.00%
1 2019 actual billed revenue for Navy, all others adjusted from 2017 to reach total revenue billed in 2019
Allocation of Customer Costs %Weighting
Factor 2
Weighted
Customer %
Revenue
Without Navy %2017 Revenue 2019 Revenue 1Allocation of Revenue Related Costs %
Prepared by FCS GROUP
(425) 867-1802
Technical Appendix - Wastewater Rate Calculation
8
City of Bremerton
Navy Wastewater Rate Calculation
B-10 Summary of O&M, Depreciation and Rate Base Allocations to Customers
Flow-Collection
w/ Navy
Flow-Collection
w/o Navy
Flow-Treatment
w/ Navy
Flow-Treatment
w/o Navy BOD w/o Navy TSS w/o Navy Customer Customer
Weighted Revenue Direct Navy
Inside City
Single Family 34.78%39.58%34.78%39.58%33.99%33.99%44.08%41.80%34.48%0.00%
Multi Family 27.01%30.74%27.01%30.74%26.39%26.39%46.33%43.94%30.09%0.00%
Commercial I 14.43%16.42%14.43%16.42%19.74%19.74%3.69%7.00%8.00%0.00%
Commercial II 2.53%2.88%2.53%2.88%6.80%6.80%0.31%0.74%1.75%0.00%
Commercial III 4.58%5.21%4.58%5.21%8.38%8.38%0.63%1.20%2.69%0.00%
Outside City
Single Family 3.35%3.81%3.35%3.81%3.27%3.27%3.80%3.60%6.43%0.00%
Multi Family 0.67%0.77%0.67%0.77%0.66%0.66%0.88%0.84%1.26%0.00%
Commercial I 0.44%0.51%0.44%0.51%0.61%0.61%0.24%0.45%0.72%0.00%
Commercial II 0.02%0.02%0.02%0.02%0.05%0.05%0.01%0.01%0.03%0.00%
Commercial III 0.06%0.06%0.06%0.06%0.10%0.10%0.02%0.04%0.09%0.00%
PSNS
Main 12.13%0.00%12.13%0.00%0.00%0.00%0.02%0.39%14.47%100.00%
Total 100.00%100.00%100.00%100.00%100.00%100.00%100.00%100.00%100.00%100.00%
Flow-Collection
w/ Navy
Flow-Collection
w/o Navy
Flow-Treatment
w/ Navy
Flow-Treatment
w/o Navy BOD w/o Navy TSS w/o Navy Customer Customer
Weighted Revenue Direct Navy
Functionalized Operating Expenses 12,281,914$ 4,726,270$ 186,146$ 620,000$ 1,590,054$ 492,917$ 477,016$ 214,800$ -$ 3,621,154$ 353,558$
Inside City
Single Family 4,235,688$ 1,643,847$ 73,685$ 215,643$ 629,417$ 167,544$ 162,140$ 94,685$ -$ 1,248,728$ -$
Multi Family 3,434,846 1,276,467 57,217 167,449 488,750 130,100 125,903 99,514 - 1,089,445 -
Commercial I 1,551,882 681,818 30,562 89,442 261,063 97,289 94,151 7,926 - 289,631 -
Commercial II 316,366 119,622 5,362 15,692 45,802 33,528 32,447 671 - 63,242 -
Commercial III 517,280 216,256 9,694 28,369 82,803 41,327 39,994 1,354 - 97,482 -
Outside City
Single Family 519,480$ 158,379$ 7,099$ 20,776$ 60,642$ 16,142$ 15,622$ 8,156$ -$ 232,663$ -$
Multi Family 103,600 31,835 1,427 4,176 12,189 3,245 3,140 1,895 - 45,693 -
Commercial I 65,298 21,006 942 2,756 8,043 2,997 2,901 505 - 26,148 -
Commercial II 2,671 812 36 107 311 228 220 12 - 946 -
Commercial III 8,615 2,697 121 354 1,033 515 499 47 - 3,349 -
PSNS
Main 1,526,187$ 573,532$ -$ 75,237$ -$ -$ -$ 35$ -$ 523,826$ 353,558$
Total 12,281,914$ 4,726,270$ 186,146$ 620,000$ 1,590,054$ 492,917$ 477,016$ 214,800$ -$ 3,621,154$ 353,558$
Summary of Customer Class Allocations
Operating Expenses
Functions of Service
Allocation of Operating Expenses
Functions of Service
Total
Prepared by FCS GROUP
(425) 867-1802
Technical Appendix - Wastewater Rate Calculation
9
City of Bremerton
Navy Wastewater Rate Calculation
B-10 Summary of O&M, Depreciation and Rate Base Allocations to Customers
Flow-Collection
w/ Navy
Flow-Collection
w/o Navy
Flow-Treatment
w/ Navy
Flow-Treatment
w/o Navy BOD w/o Navy TSS w/o Navy Customer Customer
Weighted Revenue Direct Navy
Inside City
Single Family 31.87%39.58%31.87%39.58%33.99%33.99%44.08%41.80%34.48%0.00%
Multi Family 24.75%30.74%24.75%30.74%26.39%26.39%46.33%43.94%30.09%0.00%
Commercial I 13.22%16.42%13.22%16.42%19.74%19.74%3.69%7.00%8.00%0.00%
Commercial II 2.32%2.88%2.32%2.88%6.80%6.80%0.31%0.74%1.75%0.00%
Commercial III 4.19%5.21%4.19%5.21%8.38%8.38%0.63%1.20%2.69%0.00%
Outside City
Single Family 3.07%3.81%3.07%3.81%3.27%3.27%3.80%3.60%6.43%0.00%
Multi Family 0.62%0.77%0.62%0.77%0.66%0.66%0.88%0.84%1.26%0.00%
Commercial I 0.41%0.51%0.41%0.51%0.61%0.61%0.24%0.45%0.72%0.00%
Commercial II 0.02%0.02%0.02%0.02%0.05%0.05%0.01%0.01%0.03%0.00%
Commercial III 0.05%0.06%0.05%0.06%0.10%0.10%0.02%0.04%0.09%0.00%
PSNS
Main 19.48%0.00%19.48%0.00%0.00%0.00%0.02%0.39%14.47%100.00%
Total 100.00%100.00%100.00%100.00%100.00%100.00%100.00%100.00%100.00%100.00%
Flow-Collection
w/ Navy
Flow-Collection
w/o Navy
Flow-Treatment
w/ Navy
Flow-Treatment
w/o Navy BOD w/o Navy TSS w/o Navy Customer Customer
Weighted Revenue Direct Navy
Functionalized Depreciation Expense 3,694,103$ 2,230,950$ 87,867$ -$ 687,643$ 213,169$ 206,293$ -$ -$ -$ 268,181$
Inside City
Single Family 1,160,608$ 711,049$ 34,782$ -$ 272,201$ 72,457$ 70,120$ -$ -$ -$ -$
Multi Family 901,227 552,138 27,008 - 211,367 56,264 54,449 - - - -
Commercial I 505,040 294,921 14,426 - 112,901 42,074 40,717 - - - -
Commercial II 102,614 51,743 2,531 - 19,808 14,500 14,032 - - - -
Commercial III 169,096 93,542 4,576 - 35,809 17,873 17,296 - - - -
Outside City
Single Family 111,820$ 68,507$ 3,351$ -$ 26,226$ 6,981$ 6,756$ -$ -$ -$ -$
Multi Family 22,476 13,770 674 - 5,271 1,403 1,358 - - - -
Commercial I 15,560 9,086 444 - 3,478 1,296 1,254 - - - -
Commercial II 697 351 17 - 134 98 95 - - - -
Commercial III 2,109 1,167 57 - 447 223 216 - - - -
PSNS
Main 702,856$ 434,675$ -$ -$ -$ -$ -$ -$ -$ -$ 268,181$
Total 3,694,103$ 2,230,950$ 87,867$ -$ 687,643$ 213,169$ 206,293$ -$ -$ -$ 268,181$
Allocation of Depreciation Expense Total
Functions of Service
Summary of Customer Class Allocations
Depreciation Expense
Functions of Service
Prepared by FCS GROUP
(425) 867-1802
Technical Appendix - Wastewater Rate Calculation
10
City of Bremerton
Navy Wastewater Rate Calculation
B-10 Summary of O&M, Depreciation and Rate Base Allocations to Customers
Flow-Collection
w/ Navy
Flow-Collection
w/o Navy
Flow-Treatment
w/ Navy
Flow-Treatment
w/o Navy BOD w/o Navy TSS w/o Navy Customer Customer
Weighted Revenue Direct Navy
Inside City
Single Family 31.87%39.58%31.87%39.58%33.99%33.99%44.08%41.80%34.48%0.00%
Multi Family 24.75%30.74%24.75%30.74%26.39%26.39%46.33%43.94%30.09%0.00%
Commercial I 13.22%16.42%13.22%16.42%19.74%19.74%3.69%7.00%8.00%0.00%
Commercial II 2.32%2.88%2.32%2.88%6.80%6.80%0.31%0.74%1.75%0.00%
Commercial III 4.19%5.21%4.19%5.21%8.38%8.38%0.63%1.20%2.69%0.00%
Outside City
Single Family 3.07%3.81%3.07%3.81%3.27%3.27%3.80%3.60%6.43%0.00%
Multi Family 0.62%0.77%0.62%0.77%0.66%0.66%0.88%0.84%1.26%0.00%
Commercial I 0.41%0.51%0.41%0.51%0.61%0.61%0.24%0.45%0.72%0.00%
Commercial II 0.02%0.02%0.02%0.02%0.05%0.05%0.01%0.01%0.03%0.00%
Commercial III 0.05%0.06%0.05%0.06%0.10%0.10%0.02%0.04%0.09%0.00%
PSNS
Main 19.48%0.00%19.48%0.00%0.00%0.00%0.02%0.39%14.47%100.00%
Total 100.00%100.00%100.00%100.00%100.00%100.00%100.00%100.00%100.00%100.00%
Flow-Collection
w/ Navy
Flow-Collection
w/o Navy
Flow-Treatment
w/ Navy
Flow-Treatment
w/o Navy BOD w/o Navy TSS w/o Navy Customer Customer
Weighted Revenue Direct Navy
Functionalized Rate Base 43,971,401$ 30,279,498$ 970,577$ 36,374$ 6,686,717$ 2,072,882$ 2,006,015$ 12,602$ -$ 212,444$ 1,694,293$
Inside City
Single Family 14,158,640$ 9,650,687$ 384,200$ 11,593$ 2,646,913$ 704,580$ 681,852$ 5,555$ -$ 73,260$ -$
Multi Family 11,002,911 7,493,878 298,336 9,002 2,055,360 547,115 529,467 5,838 - 63,915 -
Commercial I 6,087,361 4,002,812 159,354 4,808 1,097,859 409,134 395,936 465 - 16,992 -
Commercial II 1,204,891 702,277 27,958 844 192,615 140,998 136,450 39 - 3,710 -
Commercial III 2,017,663 1,269,596 50,543 1,525 348,215 173,796 168,189 79 - 5,719 -
Outside City
Single Family 1,370,668$ 929,809$ 37,016$ 1,117$ 255,020$ 67,884$ 65,694$ 479$ -$ 13,650$ -$
Multi Family 275,463 186,896 7,440 225 51,260 13,645 13,205 111 - 2,681 -
Commercial I 188,572 123,323 4,910 148 33,824 12,605 12,198 30 - 1,534 -
Commercial II 8,209 4,767 190 6 1,307 957 926 1 - 56 -
Commercial III 25,291 15,834 630 19 4,343 2,168 2,098 3 - 196 -
PSNS
Main 7,631,732$ 5,899,618$ -$ 7,087$ -$ -$ -$ 2$ -$ 30,732$ 1,694,293$
Total 43,971,401$ 30,279,498$ 970,577$ 36,374$ 6,686,717$ 2,072,882$ 2,006,015$ 12,602$ -$ 212,444$ 1,694,293$
Allocation of Rate Base Total
Functions of Service
Summary of Customer Class Allocations
Rate Base
Functions of Service
Prepared by FCS GROUP
(425) 867-1802
Technical Appendix - Wastewater Rate Calculation
11
City of Bremerton
Navy Wastewater Rate Calculation
B-11 Calculation of Rate of Return on Rate Base
Water 158,450$ 4,255,412$
Wastewater 287,160 7,505,193
Combined Cost of Debt 1 445,610$ 11,760,605$ 3.79%1.50%5.29%
Cost of Borrowing 2 3.42%1.50%4.92%
5.29%
1 Weighted average of all non-subsidized outstanding debt for the combined utilities
2 Numerical average of at least three recent debt issues for municipal entities with similar terms and credit ratings, provided by DA Davidson Municipal Advisors
TotalCalculation of Navy Rate of Return 2019 Interest
(Non-Subsidized Debt)
2019 Outstanding Principal
(Non-Subsidized Debt)Cost of Debt Risk
Premium
Prepared by FCS GROUP
(425) 867-1802
Technical Appendix - Wastewater Rate Calculation
12
City of Bremerton
Navy Wastewater Rate Calculation
B-12 Calculation of Net Revenue Requirement
2019 Revenue 2,167,003$
Less: O&M and Depreciation 2,229,044
Net Income (62,041)$
Rate Base 7,631,732$
% Rate of Return 5.29%
Return On Rate Base 403,643$
Total Net Revenue Requirement 2,632,687$
$ Difference over Existing Rates 465,684
% Difference over Existing Rates 21.5%
Net Revenue Requirement PSNS
Prepared by FCS GROUP
(425) 867-1802
Technical Appendix - Wastewater Rate Calculation
13
CODE
(Hour)
PAGE(S)
until local time
X
A
X B
X C
D
EX
X
G
F
X H
RATING PAGE OF PAGES
7. ISSUED BY
(Date)
16-Apr-2018
IMPORTANT - Award will be made on this Form, or on Standard Form 26, or by other authorized official written notice.
Previous Edition is Unusable 33-134 STANDARD FORM 33 (REV. 9-97)
Prescribed by GSA
FAR (48 CFR) 53.214(c)
127
(If other than Item 7)
15A. NAME 16. NAME AND TITLE OF PERSON AUTHORIZED TOAND
ADDRESS SIGN OFFER (Type or print)
OF
OFFEROR
AMENDMENT NO. DATE
15B. TELEPHONE NO (Include area code)17.SIGNATURE
360-473-5315
15C. CHECK IF REMITTANCE ADDRESS
IS DIFFERENT FROM ABOVE - ENTER
SUCH ADDRESS IN SCHEDULE.
18.OFFER DATE
CITY OF BREMERTON
DEPARTMENT PUB WORKS UTILITIES
100 OYSTER BAY AVE N
BREMERTON WA 98312-3455
1. THIS CONTRACT IS A RATED ORDER
UNDER DPAS (15 CFR 700)
2. CONTRACT NO.
N4425521C1004
N44255 8. ADDRESS OFFER TO
See Item 7
9.Sealed offers in original and copies for furnishing the supplies or services in the Schedule will be received at the place specified in Item 8, or if
handcarried, in the depository located in
CAUTION - LATE Submissions, Modifications, and Withdrawals: See Section L, Provision No. 52.214-7 or 52.215-1. All offers are subject to all terms and
conditions contained in this solicitation.
10. FOR INFORMATION
CALL:
A. NAME (NO COLLECT CALLS)
11.T ABLE OF CONTENTS
SOLICITATION/ CONTRACT FORM
SUPPLIES OR SERVICES AND PRICES/ COSTS
1
2 - 5
X I CONTRACT CLAUSES
DESCRIPTION/ SPECS./ WORK STATEMENT X
PACKAGING AND MARKING
6 - 8 J LIST OF ATTACHMENTS
INSPECTION AND ACCEPTANCE
DELIVERIES OR PERFORMANCE
9
10 K REPRESENTATIONS, CERTIFICATIONS AND
OTHER STATEMENTS OF OFFERORS
CONTRACT ADMINISTRATION DATA 11 - 12
SPECIAL CONTRACT REQUIREMENTS
OFFER (Must be fully completed by offeror)13 M
L INSTRS., CONDS., AND NOTICES TO OFFERORS
EVALUATION FACTORS FOR AWARD
NOTE: Item 12 does not apply if the solicitation includes the provisions at 52.214-16, Minimum Bid Acceptance Period.
is inserted by the offeror) from the date for receipt of offers specified above, to furnish any or all items upon which prices are offered at the price set opposite
each item, delivered at the designated point(s), within the time specified in the schedule.
13.DISCOUNT FOR PROMPT PAYMENT
(See Section I, Clause No. 52.232-8)
14.ACKNOWLEDGMENT OF AMENDMENTS(T he offeror acknowledges receipt of amendments AMENDMENT NO. DATE
to the SOLICITATION for offerors and related documents numbered and dated):
04DN7 FACILITY
12.In compliance with the above, the undersigned agrees, if this offer is accepted within calendar days (60 calendar days unless a different period
SOLICITATION, OFFER AND AWARD
X
(X)SEC.DESCRIPTION (X)SEC.DESCRIPTION PAGE(S)
PART I - THE SCHEDULE
26. NAME OF CONTRACTING OFFICER (Type or print)27. UNITED STATES OF AMERICA 28. AWARD DATE
EMAIL:TEL:(Signature of Contracting Officer)
CODE CODE
B. TELEPHONE (Include area code)C.E-MAIL ADDRESS
AWARD (To be completed by Government)
19. ACCEPTED AS TO ITEMS NUMBERED 20. AMOUNT 21. ACCOUNTING AND APPROPRIATION
$0.04 EST
22. AUTHORITY FOR USING OTHER THAN FULL AND OPEN COMPETITION:
X 10 U.S.C. 2304(c)( )1 41 U.S.C. 253(c)( )(4 copies unless otherwise specified)
23.SUBMIT INVOICES TO ADDRESS SHOWN IN ITEM
24. ADMINISTERED BY (If other than Item 7)CODE 25. PAYMENT WILL BE MADE BY CODE N68732
DFAS CLEVELAND
ACCOUNTS PAYABLE
PO BOX 998022
CLEVELAND OH 44199-8022
PART IV - REPRESENTATIONS AND INSTRUCTIONS
PART III - LIST OF DOCUMENTS, EXHIBITS AND OTHER ATTACHMENTS
14 - 26
PART II - CONTRACT CLAUSES
NAVFAC NORTHWEST
1101 TAUTOG CIRCLE
SILVERDALE WA 98315-1101
FAX:
TEL:
FAX:
TEL:
NOTE: In sealed bid solicitations "offer" and "offeror" mean "bid" and "bidder".
SOLICITATION
27
6. REQUISITION/PURCHASE NO.5. DATE ISSUED4. TYPE OF SOLICITATION
SEALED BID (IFB)
NEGOTIATED (RFP)
[ ]
[ ]
3. SOLICITATION NO.
See Item 7
N4425521C1004
Page 2 of 27
Section B - Supplies or Services and Prices
RATE STRUCTURE
B. 1 RATE STRUCTURE. The base period water and sewer (CLIN’s 0001 and 0002) rates shall be in
accordance with the mutually negotiated structures and formulas as found in Attachment J.1, Summary of
Navy Contract Negotiations for Water and Wastewater Service, October 2020. As found in Attachment J.1,
the rate design used to establish the base period rate for CLIN 0001, Water Service, assumed a 50% fixed
component and a 50% variable component. The rate design used to establish the base period rate for CLIN
0002, Wastewater Treatment, assumed a 50% fixed component and a 50% variable component. The actual
ratio of fixed to variable revenues is a function of the Navy’s volumetric use, which may vary over time
during the contract term. Water and sewer rates established for the base period of subject contract are
described below. Since CLIN’s 0003 and 0004 are based upon the City’s published rates, current year rates
will apply to them. Following each CLIN below is a description of the rate:
CLIN 0001: Price for metered water shall be a fixed monthly charge of $91,277/month and a
volumetric charge of $1.83/hundred cubic feet (hcf). The volumetric charge
is applied to the total of all billable units upon approval of the invoices.
CLIN 0002: Price for metered sewage shall be a fixed monthly charge of 109,695 and a
volumetric charge of $4.70/hundred cubic feet (hcf). The volumetric charge
is applied to the total of all billable units upon approval of the invoices.
CLIN 0003: Price for metered water and sewer service shall be in accordance with
the City of Bremerton (City) Retail Water Rates, within-city for 2” meter and
Commercial I within-city wastewater rate based on measured flow through
2” meter, which became effective on 1 January 2021. See attachment J.3.
CLIN 0004: Price for stormwater charges will be based upon 250 (Impervious Hard Surface Units) IHSU’s
at the City of Bremerton Retail Stormwater Rates for Commercial I which became effective
on 1 January 2021. See attachment J.3.
.
B.2 CLIN 0002. CITY ACCOUNT #1300090. DEDUCTIONS FOR CITY WATER
FLOW INTO NAVY SEWAGE SYSTEM PRIOR TO EXIT OF NAVY
WASTEWATER DISCHARGE THROUGH CITY METER LOCATED AT 143 1ST
STREET (EAST END OF BNC).
The parties mutually agree to the following deductions:
(1) The City has installed a water meter that measures full flow from the Naval Museum and Fountain
Room. This measured flow will be deducted from CLIN 0002 on each monthly invoice for City
Account #1300090.
(2) The City has installed a water meter to measure flow from the Harborside public restrooms. This
measured flow will be deducted from CLIN 0002 on each monthly invoice for City Account
#1300090.
(3) The City shall deduct an estimated water discharge from the Harborside Fountain Park pump room
overflow. The parties mutually agree that a monthly average of 18 hundred cubic feet (hcf) shall be
deducted from CLIN 0002 on each monthly invoice for City Account #1300090 to account for
Fountain Park Discharge.
B.3 CLIN 0002. ACCOUNT #1300100. ADDITION OF ESTIMATED SEWAGE FLOW
FROM THE NAVY’S MONTGOMERY AVENUE GUARD SHACK INTO CITY’S
WASTEWATER STREAM (WEST END OF BNC).
The parties mutually agree that sewage flow produced from the Montgomery Avenue Guard
N4425521C1004
Page 3 of 27
Shack is estimated at approximately 3 hcf per month. Therefore, the parties agree
to add this amount to each monthly invoice for City Account #13000100.
B.4 FUTURE RATE ADJUSTMENTS.
CLIN 0001 and CLIN 0002: Any adjustment of CLIN 0001 and 0002 rates beyond calendar year 2021 shall
be accomplished in accordance with the mutually negotiated rationale and formulas as found in attachment
J.2, contract N44255-21-C-1004, Methodology For Adjustment of Water and Wastewater Rates.
The parties agree that the baseline usage provided at the beginning of the contract by the City of Bremerton
shall not change during the entire contract term. Only rates and revenues as developed and incorporated
into Attachment J.2 may change for purposes of future adjustments. The baseline usages for water and
wastewater, respectively, are found in Attachment J.2 under the water and wastewater spreadsheets titled
“Base Year Calculations”.
The City shall provide any revised rates and revenues for Navy review in accordance with Attachment J.2
no less than 30 days prior to the effective date of any such adjustments. It is anticipated that future rate
adjustments will normally become effective 01 January.
CLIN’s 0003 and 0004: Adjustment of CLIN 0003 and 0004 rates beyond calendar year 2021 shall be in
accordance with amended City of Bremerton Commercial 1 rates as may be codified through revisions to
Appendix A to City of Bremerton Municipal Code 15.06, Assessments, Rates, Fees and Charges. It is
anticipated that future rate adjustments will normally become effective 01 January.
All adjustments to CLINs 0001, 0002, 0003, and 0004 are subject to the provisions of FAR Clause 52.241-
8, “Change in Rates or Terms and Conditions of Service for Unregulated Services.
Any rate adjustments beyond the ten-year term will be done on a subsequent contract. To the maximum
extent practicable for CLIN’s 0001 and 0002, the follow-on contract may allow for similarly calculated rate
adjustments within the same timeframes as rates have historically been revised.
REST OF PAGE LEFT INTENTIONALLY BLANK
N4425521C1004
Page 4 of 27
ITEM NO SUPPLIES/SERVICES QUANTITY UNIT UNIT PRICE AMOUNT
0001 1 Each $0.01 $0.01 EST
Potable Water - NBK Bremerton
FFP
Provide potable water to Naval Base Kitsap - Bremerton Naval Complex,
Bremerton, Washington. Water flow volume shall be measured through City of
Bremerton meter located at 1st and Pacific; City of Bremerton meter located at
Charleston Gate; and City of Bremerton meter located at lst and Rainier Avenue.
City of Bremerton utility accounts 1300030, 1300040, and 1300050 apply to this
CLIN. CLIN 0001 rate design was negotiated at a mutually agreed Cost of Service
Study. CLIN 0001 estimated component rates for 2021 are found in contract
provision B1 Rate Structure.
FOB: Destination
PSC CD: S114
NET AMT $0.01 (EST.)
ITEM NO SUPPLIES/SERVICES QUANTITY UNIT UNIT PRICE AMOUNT
0002 1 Each $0.01 $0.01 EST
Sewage Service - NBK Bremerton
FFP
Provide sewage disposal and treatment for Bremerton Naval Complex, Bremerton,
Washington. Sewage flow volume will be measured through City of Bremerton
meter located at 143 lst Street; and City of Bremerton meter located at 416 S.
Cambrian Avenue. City of Bremerton utility accounts 1300090, 1300100, and
1300120 apply to this CLIN. CLIN 0002 rate design is based on mutually
negotiated cost of service study. CLIN 0002 component rates for 2021 are found at
contract provision B.1, Rate Structure. Deductions from account 1300090 to
address City water flow into Navy sewage system shall be applied as described in
contract provision B.2. Addition of Navy sewage flow from Mongomery Guard
Shack into City sewer system shall be applied to account 1300010 as described in
contract provision B.3.
FOB: Destination
PSC CD: S119
NET AMT $0.01 (EST.)
N4425521C1004
Page 5 of 27
ITEM NO SUPPLIES/SERVICES QUANTITY UNIT UNIT PRICE AMOUNT
0003 1 Each $0.01 $0.01 EST
Water and Sewer Bldg 981 - NBK Bremerton
FFP
Provide potable water and sewage service for Building 981, Pass and ID,
Bremerton Naval Complex (BNC), Bremerton, Washington. Water flow volume is
measured through City of Bremerton water meter. City of Bremerton utility
account 4655650 applies to this CLIN. Price for metered water shall be based on
City of Bremerton within city 2" meters size as found in City of Bremerton
Municipal Code Retail Water Service Rates. Price for sewage is based on City of
Bremerton Commercial 1 within city rates as found in City of Bremerton
Municipal Code for Retail Wastewater Service. Sewer flow is equivalent to water
flow for the CLIN.
FOB: Destination
PSC CD: S119
NET AMT $0.01 (EST.)
ITEM NO SUPPLIES/SERVICES QUANTITY UNIT UNIT PRICE AMOUNT
0004 1 Each $0.01 $0.01 EST
Stormwater Services - NBK Bremerton
FFP
Provide stormwater services to add the Navy property located on Montgomery
Avenue that directly contributes stormwater to a City-owned and maintained
stormwater collection system. The monthly rate will be based on the amount of
impervious surface units (ISU) contributing run-off to the City collection system.
One ISU is equivalent to 2,500 square feet. The applicable Retail Stormwater Rate
for this charge is the City's Comercial I found in the City's Municipal Ordinance,
Attachment J.3.. The parties agree that 250 ISU's are applicable to the Navy
property located on Montgomery Ave. The stormwater charges for this area will
be added to the City of Bremerton utility account #2409670.
FOB: Destination
PSC CD: S119
NET AMT $0.01 (EST.)
N4425521C1004
Page 6 of 27
Section C - Descriptions and Specifications
STATEMENT OF SERVICES
C.1 GENERAL REQUIREMENTS. The City of Bremerton (City) shall provide all labor, supervision, tools,
equipment, and transportation necessary to deliver the services required under this contract.
C.2 PREMISES TO BE SERVED. The premises to be served are collectively known as the Naval Base
Kitsap (NBK), Bremerton Complex. For purposes of this contract, the NBK Bremerton facilities to be served
consist of:
Naval Base Kitsap (NBK) Bremerton
120 South Dewey Street
Bremerton, WA 98314-5020
Puget Sound Navy Shipyard (PSNS)/ Intermediate Maintenance Facility (IMF)
1400 Farragut Avenue
Bremerton, WA 98314-5001
The facilities to be provided water and sewer service under CLIN’s 0001, 0002, 0003 and 0004 are detailed in
two Department of Navy, Facilities Engineering Systems Command NW drawings (as may be further revised):
Naval Base Kitsap, Bremerton, WA, “Sanitary Sewer, CHT & Pressure Sewer Systems, Bremerton Naval
Complex, PWD Drawing No. 57849, revised April 12, 2017,” and
Naval Base Kitsap, Bremerton, WA, “Utility Map, Freshwater Distribution System, Bremerton Naval Complex,
PWD Drawing No. 53935, revised April 7, 2017.”
Subject to appropriate security reviews and approvals, copies of these drawings will be provided by the Navy to
the City of Bremerton upon request.
C.3 ESTIMATED SERVICE. Estimated annual water consumption:
CLIN 0001 – 650,000 hundred cubic feet (hcf)
CLIN 0003 - 50 hundred cubic feet (hcf)
Estimated annual sewage capacity requirements:
CLIN 0002 – 300,000 hundred cubic feet (hcf)
Estimated stormwater charges:
CLIN 0004 – 250 Impermeable Hard Surface Units (IHSU’s)
C.4 POINT OF CONNECTION/LOCATION.
Water service: Water shall be delivered at the following meter locations:
1. First Street and Pacific Avenue
2. Charleston Gate
3. First Street and Rainier Avenue
4. State Highway 304, Pass and ID Building #981
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Sewer Service: the City shall receive sewage at the following points of delivery:
1. 416 S. Cambrian Avenue (upstream of the City’s Cambrian Avenue flow metering
vault (MS4) located on the site of the City’s pump station WB-3
2. 143 First Street (at the City’s First Street flow metering vault (MS5)
3. State Highway 304, Pass and ID Building #981
Stormwater Service: The City receives stormwater at various points near 100 Montgomery Avenue S., Active
Duty Parking Garage.
Attachment J.4, Water and Wastewater Utility Location, Accounts and Meters, Bremerton Naval
Complex, is provided as further reference. Should the City replace any meter providing water or
wastewater services to the Navy, the City shall notify the Contracting Officer of such replacement,
including the new meter number, within 30 days of initiation of use of the replacement meter.
The Contracting Officer shall revise, through modification to the contract, the applicable meter numbers
cited in Section B, Section C, and Attachment J.4 of this contract.
C.5 DESCRIPTION OF SERVICE.
(a) WATER:
The City shall provide at its expense all necessary facilities and permits required to connect the City of
Bremerton water distribution system to the Government water system at the points of delivery specified
in this contract for the purpose of providing reliable water service to NBK Bremerton and PSNS/IMF.
The City shall take all reasonable efforts to continuously provide sufficient potable water to support a current-year
average day demand of 1.2 million gallons per day (MGD) with an estimated maximum day demand of 3.5 MGD.
Growth projections estimate those numbers to increase to 1.32 MGD, and 3.85 MGD, respectively, by 2028.
The City shall take all reasonable efforts to provide sufficient potable water to support a maximum fire flow
demand of 7,750 GPM for a duration of 4 hours.
Water shall be measured through three 10” meters. The water supplied will be clear, potable, and safe for human
consumption and in accordance with the applicable standards as promulgated by, and as may be revised by,
Federal, state, and local agencies having regulatory authority.
(b) SEWER:
The City shall provide at its expense all necessary facilities and permits required to receive, carry, treat, and
dispose of sewage from NBK Bremerton and PSNS/IMF at the points of delivery specified in this contract. The
City shall receive, carry, treat, and dispose of sewage in a manner, and by such means, as will not constitute a
hazard to the public health. The City shall operate its sewage facilities in conformity with applicable laws, rules,
and regulations as promulgated by, and as may be revised by, Federal, state, and local agencies having regulatory
authority.
The average daily sewer volume is estimated to be 0.59 MGD, with an estimated peak daily volume of 2.0 MGD.
The amount of sewage discharged by the Navy to the City for treatment, reclamation, or disposal through the
Cambrian Avenue discharge points shall not exceed a peak discharge rate of 2,500 GPM, nor a total daily volume
of 2.59 MGD. The amount of sewage discharged to the City for treatment, reclamation, or disposal through the
First Street discharge point shall not exceed a peak discharge rate of 500 GPM, nor a total daily volume of 0.43
MGD. Flow shall be measured through two 6” meters and one 10” meter.
.
(c) STORMWATER
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The City shall provide at its expense all necessary facilities and permits required to receive, carry, and
dispose of stormwater from the Parking Structure described above at the southern end of Montgomery Avenue via
various stormwater drains near the facility. The City shall receive, carry, and dispose of the stormwater in a
manner, and by such means, as will not constitute a hazard to the public health.
C.6 The Navy hereby grants to the City of Bremerton a revocable permit to enter the service location
for any work related to the requirements under this contract. Authorized representatives of the City will
be allowed access to the facility at suitable times to perform the obligations of the utility service contract.
It is expressly understood that the Navy may limit or restrict the right of access herein granted in
any manner considered to be necessary for the national security. City personnel requiring base access
will obtain appropriate badging and identification as may be required by the Government.
C.7 OPERATIONAL COORDINATION MEETINGS.
The parties agree that an operational coordination meeting will be held between the City and Navy no
less than every six months during the term of the contract. More frequent meetings may be scheduled as
appropriate. The purpose of these meetings is to facilitate increased communication and coordination
among the parties on such issues as significant changes to operational procedures, planned outages or
flushing operations, maintenance requirements, review of key technical criteria or data associated with
utility operations, upgrade or replacement of equipment or infrastructure, conservation initiatives, and
other issues that may substantially impact the quality or level of service requirements. The meetings will
be scheduled by the Utilities Program Manager of Naval Facilities Engineering Systems Command Northwest –
Bremerton (NAVFACNW – Bremerton) and will be co-chaired by the Utilities Program Manager of
NAVFACNW Bremerton and the City of Bremerton Public Works Director or their designated
representatives.
C.8 CONTACT AND NOTIFICATION LISTS.
The parties agree that a contact and notification list of key personnel for the Navy and City shall be
maintained. This list of personnel is found at Attachment J.5, Key Utility Personnel Contact List,
Bremerton Naval Complex and City of Bremerton. This list will be revised as necessary but no less than
once every six months. Update of this list will be a part of the agenda for the bi-annual Operational
Coordination Meetings.
C.9 TERM.
This contract shall continue in effect for a period of 10 years beginning 3 May 2021 or
until terminated at the option of the Government by giving written notice not less than 30 days in advance
of the effective date of termination.
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Section E - Inspection and Acceptance
INSPECTION AND ACCEPTANCE TERMS
Supplies/services will be inspected/accepted at:
CLIN INSPECT AT INSPECT BY ACCEPT AT ACCEPT BY
0001 N/A N/A N/A Government
0002 N/A N/A N/A Government
0003 N/A N/A N/A Government
0004 N/A N/A N/A Government
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Section F - Deliveries or Performance
DELIVERY INFORMATION
CLIN DELIVERY DATE QUANTITY SHIP TO ADDRESS DODAAC /
CAGE
0001 POP 03-MAY-2021 TO
02-MAY-2031
N/A N/A
FOB: Destination
0002 POP 03-MAY-2021 TO
02-MAY-2031
N/A N/A
FOB: Destination
0003 POP 03-MAY-2021 TO
02-MAY-2031
N/A N/A
FOB: Destination
0004 POP 03-MAY-2021 TO
02-MAY-2031
N/A N/A
FOB: Destination
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Section G - Contract Administration Data
INVOICING INSTRUCTIONS
G.1 PAYMENTS. The City shall be paid by the designated disbursing office for services furnished under the
contract at the rates specified. All bills for regular monthly service shall be paid according to the Prompt
Payment Act. The Government shall be entitled to any discounts customarily applicable to payment of bills by
all customers of the City under like conditions of service. The Government shall notify the City, in writing,
within 30 days following receipt of any disputed billing. The Government may pay the disputed billings in full
under protest, pending a negotiated resolution pursuant to an appropriate audit, if required, and in accordance
with the Disputes Clause of the contract.
G. 2 INVOICES. Invoices for water and sewage service provided under CLINS 0001, 0002, and 0003 shall
contain statements of the meter readings at the beginning and end of the billing period, including the
consumption during the billing period. For CLIN 0004, it is agreed that the Navy is responsible for 250 IHSU’s
on a monthly basis. Invoices will also clearly state the negotiated rate(s) or City rate applied to the appropriate
CLINs. The invoice shall contain the Navy contract number, N44255-21-C-1004; the individual city utility
account; and applicable meter numbers. The fixed and volumetric components of the appropriate rate(s) shall be
clearly identified for each account. Deductions and Additions to CLIN 0002 in accordance with contract
provisions B.2 and B.3 shall be clearly identified. Water and sewage billing shall be on a monthly basis.
Submit invoices to:
Utility Invoice Processing Center
(Insert Government Account Number)
Box 159
9226 THIRD AVENUE
NORFOLK, VA 23511-2313
Utility Account
Number
GOVERNMENT
ACCOUNT NUMBER Contract No. Service Location Sevice
1300030 NW_43_FW_00011 N44255-21-C-1004 1st and Pacific Water
1300040 NW_43_FW_0012 N44255-21-C-1004 Charleston Gate Water
1300050 NW_43_FW_00007 N44255-21-C-1004
1st Street &
Rainier Ave. Water
1300090 NW_43_SE_00006 N44255-21-C-1004
143 1st Avenue -
MS5 Sewage
1300100 NW_43_SE_00004
N44255-21-C-1004 416 S. Cambrian
Avenue – MS4 Sewage
1300120 NW_43_SE_00007
N44255-21-C-1004 416 S. Cambrian
Avenue – MS4 Sewage
4655650 NW_43_SE_NM_BR_002
N44255-21-C-1004 State Highway
304 Pass & ID
Bldg 981 Sewage
4655650 NW_43_FW_NM_BR_002
N44255-21-C-1004 State Highway
304 Pass & ID
Bldg 981 Water
2409670 NW_43_FW_NM_M1_013
N44255-21-C-1004 100 S.
Montgomery St. Stormwater
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G.3 OTHER COMMUNICATION.
All other communication regarding this contract shall be addressed as follows:
Utility Service Provider City of Bremerton
Attn: Contracts Administrator - Finance Department
345 6th Street Suite 100
Bremerton, WA 98337
Government: Department of Navy
Naval Facilities Engineering Systems Command Northwest
Attention: Utilities Contracts
1101 Tautog Circle
Silverdale, WA 98315-1101
G.4. ACCOUNTING AND APPROPRIATION DATA.
The Certifying Official shall cite funding for recurring services on each invoice. Nonrecurring services will
normally be procured through contract modification and shall be separately invoiced.
G.5 ACCOUNTING PROCEDURES.
The City shall comply with the requirements of the latest revised Office of Management and
Budget (OMB) Circular A-87, “Cost Principles for State, Local, and Indian Tribe Governments”.
Compliance with OMB Circular A-87 will be monitored through Navy review of the periodic reports
generated by the Budgeting, Accounting, and Reporting System (BARS) of the Washington State
Auditor’s Office.
G.6 RATE CHANGES.
The City shall notify the Navy of any applicable rate changes as far in advance as is reasonable. Changes in
rates or terms and conditions of service are subject to the provisions of FAR Clause 52.241-8,
“Change in Rates or Terms and Conditions of Service for Unregulated Services (Feb 1995).
PAYMENT INSTRUCTIONS
DFARS PGI SECTION 207.7108
Department of Defense Federal Acquisition Supplement Procedures, Guidance, and Information
https://www.acq.osd.mil/dpap/dars/pgi/pgi_htm/current/PGI204_71.htm#payment_instructions
N4425521C1004
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Section H - Special Contract Requirements
SPECIAL CONTRACT REQUIREMENTS
H.1 SEWAGE SAMPLING. The City shall comply with all applicable federal, state, and local requirements for
sewage monitoring and sampling. The City, at a minimum, shall conduct sewage sampling on a monthly basis.
Copies of reports of sampling analyses shall be provided to NBK Bremerton, Code 106.
H.2 ANNUAL RATE REVIEWS. Annual rate reviews may be conducted by the Government in accordance with
the Federal Acquisition Regulation (FAR) Part 41.401, “Monthly and Annual Review”. Notwithstanding mutually
negotiated rates for this contract, these annual rate reviews may constitute grounds for rate redetermination in
accordance with the requirements of FAR Part 41.401.
H.3 METERS. The parties agree that the City shall furnish, install, maintain, repair, calibrate, and read all meters
associated with the City’s performance requirements under this contract in accordance with FAR Clause 52.241-6,
Service Provisions. The parties agree that in the event any meter is determined through inspection, testing, or other
means to not be operable or otherwise not in compliance, the City shall either repair or replace such meter within 60
days. Should such repair or replacement not be feasible, the parties shall negotiate a mutually agreeable estimate of
flow to be used for billing purposes. Estimated flow calculations must be negotiated within 60 days from date
meter has been determined to be noncompliant or inoperable.
H.4 COST OF SERVICE STUDY. The parties agree that the Summary of U.S. Navy Contract Negotiations for
Water and Wastewater Service, Attachment J.1, constitutes the basis for development of the 2021 base year rates for
this contract. It is further contemplated that a follow-up cost of service study from the City will be completed and
available for mutual review by the parties no later than two (2) years from the end of this contract term.
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Section I - Contract Clauses
CLAUSES INCORPORATED BY REFERENCE
52.202-1 Definitions NOV 2013
52.203-3 Gratuities APR 1984
52.203-5 Covenant Against Contingent Fees MAY 2014
52.203-6 Restrictions On Subcontractor Sales To The Government SEP 2006
52.203-7 Anti-Kickback Procedures MAY 2014
52.203-8 Cancellation, Rescission, and Recovery of Funds for Illegal or
Improper Activity
MAY 2014
52.203-10 Price Or Fee Adjustment For Illegal Or Improper Activity MAY 2014
52.203-12 Limitation On Payments To Influence Certain Federal
Transactions
OCT 2010
52.203-17 Contractor Employee Whistleblower Rights and Requirement
To Inform Employees of Whistleblower Rights
APR 2014
52.204-4 Printed or Copied Double-Sided on Postconsumer Fiber
Content Paper
MAY 2011
52.204-7 System for Award Management OCT 2016
52.204-19 Incorporation by Reference of Representations and
Certifications.
DEC 2014
52.204-25 Prohibition on Contracting for Certain Telecommunications
and Video Surveillance Services or Equipment.
AUG 2019
52.219-8 Utilization of Small Business Concerns NOV 2016
52.222-3 Convict Labor JUN 2003
52.222-21 Prohibition Of Segregated Facilities APR 2015
52.222-26 Equal Opportunity SEP 2016
52.222-50 Combating Trafficking in Persons MAR 2015
52.223-18 Encouraging Contractor Policies To Ban Text Messaging
While Driving
AUG 2011
52.225-13 Restrictions on Certain Foreign Purchases JUN 2008
52.225-25 Prohibition on Contracting with Entities Engaging in Certain
Activities or Transactions Relating to Iran-- Representation
and Certifications.
AUG 2018
52.232-1 Payments APR 1984
52.232-11 Extras APR 1984
52.232-25 Prompt Payment JAN 2017
52.232-33 Payment by Electronic Funds Transfer--System for Award
Management
JUL 2013
52.232-39 Unenforceability of Unauthorized Obligations JUN 2013
52.233-3 Protest After Award AUG 1996
52.233-4 Applicable Law for Breach of Contract Claim OCT 2004
52.237-2 Protection Of Government Buildings, Equipment, And
Vegetation
APR 1984
52.237-3 Continuity Of Services JAN 1991
52.241-2 Order of Precedence - Utilities FEB 1995
52.241-4 Change in Class of Service FEB 1995
52.241-5 Contractor's Facilities FEB 1995
52.241-11 Multiple Service Locations FEB 1995
52.242-13 Bankruptcy JUL 1995
52.244-6 Subcontracts for Commercial Items AUG 2019
52.249-2 Termination For Convenience Of The Government (Fixed-
Price)
APR 2012
52.249-8 Default (Fixed-Price Supply & Service) APR 1984
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52.253-1 Computer Generated Forms JAN 1991
252.203-7001 Prohibition On Persons Convicted of Fraud or Other Defense-
Contract-Related Felonies
DEC 2008
252.204-7003 Control Of Government Personnel Work Product APR 1992
252.209-7004 Subcontracting With Firms That Are Owned or Controlled By
The Government of a Country that is a State Sponsor of
Terrorism
OCT 2015
252.223-7006 Prohibition On Storage, Treatment, and Disposal of Toxic or
Hazardous Materials
SEP 2014
252.225-7048 Export-Controlled Items JUN 2013
252.241-7001 Government Access DEC 1991
252.243-7002 Requests for Equitable Adjustment DEC 2012
CLAUSES INCORPORATED BY FULL TEXT
52.222-26 EQUAL OPPORTUNITY (SEPT 2016) ALTERNATE I (FEB 1999)
Notice. The following terms of this clause are waived for this contract: NA .
(a) Definitions. As used in this clause--
Compensation means any payments made to, or on behalf of, an employee or offered to an applicant as
remuneration for employment, including but not limited to salary, wages, overtime pay, shift differentials, bonuses,
commissions, vacation and holiday pay, allowances, insurance and other benefits, stock options and awards,
profit sharing, and retirement.
Compensation information means the amount and type of compensation provided to employees or offered to
applicants, including, but not limited to, the desire of the Contractor to attract and retain a particular employee for
the value the employee is perceived to add to the Contractor's profit or productivity; the availability of employees
with like skills in the marketplace; market research about the worth of similar jobs in the relevant marketplace; job
analysis, descriptions, and evaluations; salary and pay structures; salary surveys; labor union agreements; and
Contractor decisions, statements and policies related to setting or altering employee compensation.
Essential job functions means the fundamental job duties of the employment position an individual holds. A job
function may be considered essential if--
(1) The access to compensation information is necessary in order to perform that function or another routinely
assigned business task; or
(2) The function or duties of the position include protecting and maintaining the privacy of employee personnel
records, including compensation information.
Gender identity has the meaning given by the Department of Labor's Office of Federal Contract Compliance
Programs, and is found at www.dol.gov/ofccp/LGBT/LGBT_FAQs.html.
Sexual orientation has the meaning given by the Department of Labor's Office of Federal Contract Compliance
Programs, and is found at www.dol.gov/ofccp/LGBT/LGBT_FAQs.html.
United States means the 50 States, the District of Columbia, Puerto Rico, the Northern Mariana Islands, American
Samoa, Guam, the U.S. Virgin Islands, and Wake Island.
(b)(1) If, during any 12-month period (including the 12 months preceding the award of this contract), the Contractor
has been or is awarded nonexempt Federal contracts and/or subcontracts that have an aggregate value in excess of
N4425521C1004
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$10,000, the Contractor shall comply with this clause, except for work performed outside the United States by
employees who were not recruited within the United States. Upon request, the Contractor shall provide information
necessary to determine the applicability of this clause.
(2) If the Contractor is a religious corporation, association, educational institution, or society, the requirements of
this clause do not apply with respect to the employment of individuals of a particular religion to perform work
connected with the carrying on of the Contractor's activities (41 CFR 60-1.5).
(c) (1) The Contractor shall not discriminate against any employee or applicant for employment because of race,
color, religion, sex, sexual orientation, gender identity, or national origin. However, it shall not be a violation of this
clause for the Contractor to extend a publicly announced preference in employment to Indians living on or near an
Indian reservation, in connection with employment opportunities on or near an Indian reservation, as permitted by
41 CFR 60-1.5.
(2) The Contractor shall take affirmative action to ensure that applicants are employed, and that employees are
treated during employment, without regard to their race, color, religion, sex, sexual orientation, gender identity, or
national origin. This shall include, but not be limited to, (i) employment, (ii) upgrading, (iii) demotion, (iv) transfer,
(v) recruitment or recruitment advertising, (vi) layoff or termination, (vii) rates of pay or other forms of
compensation, and (viii) selection for training, including apprenticeship.
(3) The Contractor shall post in conspicuous places available to employees and applicants for employment the
notices to be provided by the Contracting Officer that explain this clause.
(4) The Contractor shall, in all solicitations or advertisements for employees placed by or on behalf of the
Contractor, state that all qualified applicants will receive consideration for employment without regard to race,
color, religion, sex, sexual orientation, gender identity, or national origin.
(5)(i) The Contractor shall not discharge or in any other manner discriminate against any employee or applicant for
employment because such employee or applicant has inquired about, discussed, or disclosed the compensation of the
employee or applicant or another employee or applicant. This prohibition against discrimination does
not apply to instances in which an employee who has access to the compensation information of other employees or
applicants as a part of such employee's essential job functions discloses the compensation of such other employees
or applicants to individuals who do not otherwise have access to such information, unless such
disclosure is in response to a formal complaint or charge, in furtherance of an investigation, proceeding, hearing, or
action, including an investigation conducted by the employer, or is consistent with the Contractor's legal duty to
furnish information.
(ii) The Contractor shall disseminate the prohibition on discrimination in paragraph (c)(5)(i) of this clause, using
language prescribed by the Director of the Office of Federal Contract Compliance Programs (OFCCP), to employees
and applicants by—
(A) Incorporation into existing employee manuals or handbooks; and
(B) Electronic posting or by posting a copy of the provision in conspicuous places available to employees and
applicants for employment.
(6) The Contractor shall send, to each labor union or representative of workers with which it has a collective
bargaining agreement or other contract or understanding, the notice to be provided by the Contracting Officer
advising the labor union or workers' representative of the Contractor's commitments under this clause, and post
copies of the notice in conspicuous places available to employees and applicants for employment.
(7) The Contractor shall comply with Executive Order 11246, as amended, and the rules, regulations, and orders of
the Secretary of Labor.
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(8) The Contractor shall furnish to the contracting agency all information required by Executive Order 11246, as
amended, and by the rules, regulations, and orders of the Secretary of Labor. The Contractor shall also file Standard
Form 100 (EEO-1), or any successor form, as prescribed in 41 CFR part 60-1. Unless the Contractor has filed within
the 12 months preceding the date of contract award, the Contractor shall, within 30 days after contract award, apply
to either the regional Office of Federal Contract Compliance Programs (OFCCP) or the local office of the Equal
Employment Opportunity Commission for the necessary forms.
(9) The Contractor shall permit access to its premises, during normal business hours, by the contracting agency or
the OFCCP for the purpose of conducting on-site compliance evaluations and complaint investigations. The
Contractor shall permit the Government to inspect and copy any books, accounts, records (including computerized
records), and other material that may be relevant to the matter under investigation and pertinent to compliance with
Executive Order 11246, as amended, and rules and regulations that implement the Executive Order.
(10) If the OFCCP determines that the Contractor is not in compliance with this clause or any rule, regulation, or
order of the Secretary of Labor, this contract may be canceled, terminated, or suspended in whole or in part and the
Contractor may be declared ineligible for further Government contracts, under the procedures authorized in
Executive Order 11246, as amended. In addition, sanctions may be imposed and remedies invoked against the
Contractor as provided in Executive Order 11246, as amended; in the rules, regulations, and orders of the Secretary
of Labor; or as otherwise provided by law.
(11) The Contractor shall include the terms and conditions of this clause in every subcontract or purchase order that
is not exempted by the rules, regulations, or orders of the Secretary of Labor issued under Executive Order 11246, as
amended, so that these terms and conditions will be binding upon each subcontractor or vendor.
(12) The Contractor shall take such action with respect to any subcontract or purchase order as the Director of
OFCCP may direct as a means of enforcing these terms and conditions, including sanctions for noncompliance;
provided, that if the Contractor becomes involved in, or is threatened with, litigation with a subcontractor or vendor
as a result of any direction, the Contractor may request the United States to enter into the litigation to protect the
interests of the United States.
(d) Notwithstanding any other clause in this contract, disputes relative to this clause will be governed by the
procedures in 41 CFR part 60-1.
(End of clause)
52.222-35 EQUAL OPPORTUNITY FOR VETERANS (OCT 2015) ALTERNATE I (JUL 2014)
Notice: The following term(s) of this clause are waived for this contract: -------------------NA .
(a) Definitions. As used in this clause--
``Active duty wartime or campaign badge veteran,'' ``Armed Forces service medal veteran,'' ``disabled veteran,''
``protected veteran,'' ``qualified disabled veteran,'' and ``recently separated veteran'' have the meanings given at FAR
22.1301.
(b) Equal opportunity clause. The Contractor shall abide by the requirements of the equal opportunity clause at 41
CFR 60-300.5(a), as of March 24, 2014. This clause prohibits discrimination against qualified protected veterans,
and requires affirmative action by the Contractor to employ and advance in employment qualified protected
veterans.
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(c) Subcontracts. The Contractor shall insert the terms of this clause in subcontracts of $100,000 or more unless
exempted by rules, regulations, or orders of the Secretary of Labor. The Contractor shall act as specified by the
Director, Office of Federal Contract Compliance Programs, to enforce the terms, including action for
noncompliance. Such necessary changes in language may be made as shall be appropriate to identify properly the
parties and their undertakings.
(End of clause)
52.232-40 PROVIDING ACCELERATED PAYMENTS TO SMALL BUSINESS
SUBCONTRACTORS (DEC 2013)
(a) Upon receipt of accelerated payments from the Government, the Contractor shall make accelerated payments to
its small business subcontractors under this contract, to the maximum extent practicable and prior to when such
payment is otherwise required under the applicable contract or subcontract, after receipt of a proper invoice and all
other required documentation from the small business subcontractor.
(b) The acceleration of payments under this clause does not provide any new rights under the Prompt Payment Act.
(c) Include the substance of this clause, including this paragraph (c), in all subcontracts with small business
concerns, including subcontracts with small business concerns for the acquisition of commercial items.
(End of clause)
52.233-1 DISPUTES. (MAY 2014) -- ALTERNATE I (DEC 1991)
(a) This contract is subject to 41 U.S.C. chapter 71, Contract Disputes.
(b) Except as provided in 41 U.S.C. chapter 71, all disputes arising under or relating to this contract shall be
resolved under this clause.
(c) Claim, as used in this clause, means a written demand or written assertion by one of the contracting parties
seeking, as a matter of right, the payment of money in a sum certain, the adjustment or interpretation of contract
terms, or other relief arising under or relating to this contract. However, a written demand or written assertion by the
Contractor seeking the payment of money exceeding $100,000 is not a claim under 41 U.S.C. chapter 71 until
certified. A voucher, invoice, or other routine request for payment that is not in dispute when submitted is not a
claim under 41 U.S.C. chapter 71. The submission may be converted to a claim under 41 U.S.C. chapter 71, by
complying with the submission and certification requirements of this clause, if it is disputed either as to liability or
amount or is not acted upon in a reasonable time.
(d)(1) A claim by the Contractor shall be made in writing and, unless otherwise stated in this contract, submitted
within 6 years after accrual of the claim to the Contracting Officer for a written decision. A claim by the
Government against the Contractor shall be subject to a written decision by the Contracting Officer.
(2) (i) Contractors shall provide the certification specified in subparagraph (d)(2)(iii) of this clause when submitting
any claimexceeding $100,000.
(ii) The certification requirement does not apply to issues in controversy that have not been submitted as all or part
of a claim.
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(iii) The certification shall state as follows: "I certify that the claim is made in good faith; that the supporting data
are accurate and complete to the best of my knowledge and belief; that the amount requested accurately reflects the
contract adjustment for which the Contractor believes the Government is liable; and that I am authorized to certify
the claim on behalf of the Contractor.
(3) The certification may be executed by any person authorized to bind the Contractor with respect to the claim.
(e) For Contractor claims of $100,000 or less, the Contracting Officer must, if requested in writing by the
Contractor, render a decision within 60 days of the request. For Contractor-certified claims over $100,000, the
Contracting Officer must, within 60 days, decide the claim or notify the Contractor of the date by which the decision
will be made.
(f) The Contracting Officer's decision shall be final unless the Contractor appeals or files a suit as provided in 41
U.S.C. chapter 71.
(g) If the claim by the Contractor is submitted to the Contracting Officer or a claim by the Government is presented
to the Contractor, the parties, by mutual consent, may agree to use ADR. If the Contractor refuses an offer for
alternative disputes resolution, the Contractor shall inform the Contracting Officer, in writing, of the Contractor's
specific reasons for rejecting the request. When using arbitration conducted pursuant to 5 U.S.C. 575-580, or when
using any other ADR technique that the agency elects to handle in accordance with the ADRA, any claim,
regardless of amount, shall be accompanied by the certification described in subparagraph (d)(2)(iii) of this clause,
and executed in accordance with subparagraph (d)(3) of this clause.
(h) The Government shall pay interest on the amount found due and unpaid from (1) the date the Contracting Officer
receives the claim (certified, if required); or (2) the date that payment otherwise would be due, if that date is later,
until the date of payment. With regard to claims having defective certifications, as defined in (FAR) 48 CFR
33.201, interest shall be paid from the date that the Contracting Officer initially receives the claim. Simple interest
on claims shall be paid at the rate, fixed by the Secretary of the Treasury as provided in the Act, which is applicable
to the period during which the Contracting Officer receives the claim and then at the rate applicable for each 6-
month period as fixed by the Treasury Secretary during the pendency of the claim.
(i) The Contractor shall proceed diligently with performance of this contract, pending final resolution of any request
for relief, claim, appeal, or action arising under or relating to the contract, and comply with any decision of the
Contracting Officer.
(End of clause)
52.241-3 SCOPE AND DURATION OF CONTRACT (FEB 1995)
(a) For the period 10 years commencing upon contract award the Contractor agrees to furnish and the Government
agrees to purchase water, sewer and storm water utility service in accordance with the applicable tariff(s), rules,
and regulations as approved by the applicable governing regulatory body and as set forth in the contract.
(b) It is expressly understood that neither the Contractor nor the Government is under any obligation to continue any
service under the terms and conditions of this contract beyond the expiration date.
(c) The Contractor shall provide the Government with one complete set of rates, terms, and conditions of service
which are in effect as of the date of this contract and any subsequently approved rates.
(d) The Contractor shall be paid at the applicable rate(s) under the tariff and the Government shall be liable for the
minimum monthly charge, if any, specified in this contract commencing with the period in which service is initially
furnished and continuing for the term of this contract. Any minimum monthly charge specified in this contract shall
be equitably prorated for the periods in which commencement and termination of this contract become effective.
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(End of clause)
52.241-6 SERVICE PROVISIONS (FEB 1995)
(a) Measurement of service. (1) All service furnished by the Contractor shall be measured by suitable metering
equipment of standard manufacture, to be furnished, installed, maintained, repaired, calibrated, and read by the
Contractor at its expense. When more than a single meter is installed at a service location, the readings thereof may
be billed conjunctively, if appropriate. In the event any meter fails to register (or registers incorrectly) the service
furnished, the parties shall agree upon the length of time of meter malfunction and the quantity of service delivered
during such period of time. An appropriate adjustment shall be made to the next invoice for the purpose of
correcting such errors. However, any meter which registers not more than 3 percent slow or fast shall be
deemed correct.
(2) The Contractor shall read all meters at periodic intervals of approximately 30 days or in accordance with the
policy of the cognizant regulatory body or applicable bylaws. All billings based on meter readings of less than
28 days shall be prorated accordingly.
(b) Meter test. (1) The Contractor, at its expense, shall periodically inspect and test Contractor-installed meters at
intervals not exceeding 5 year(s) The Government has the right to have representation during the inspection and
test.
(2) At the written request of the Contracting Officer, the Contractor shall make additional tests of any or all such
meters in the presence of Government representatives. The cost of such additional tests shall be borne by the
Government if the percentage of errors is found to be not more than 3% percent slow or fast.
(3) No meter shall be placed in service or allowed to remain in service which has an error in registration in excess of
3% percent under normal operating conditions.
(c) Change in volume or character. Reasonable notice shall be given by the Contracting Officer to the Contractor
regarding any material changes anticipated in the volume or characteristics of the utility service required at each
location.
(d) Continuity of service and consumption. The Contractor shall use reasonable diligence to provide a regular and
uninterrupted supply of service at each service location, but shall not be liable for damages, breach of contract or
otherwise, to the Government for failure, suspension, diminution, or other variations of service occasioned by or in
consequence of any cause beyond the control of the Contractor, including but not limited to acts of God or of the
public enemy, fires, floods, earthquakes, or other catastrophe, strikes, or failure or breakdown of transmission or
other facilities. If any such failure, suspension, diminution, or other variation of service shall aggregate more than
24 hour(s) during any billing period hereunder, an equitable adjustment shall be made in the monthly billing
specified in this contract (including the minimum monthly charge)
(End of clause)
52.241-8 CHANGE IN RATES OR TERMS AND CONDITIONS OF SERVICE FOR UNREGULATED
SERVICES (FEB 1995)
(a) This clause applies to the extent that services furnished hereunder are not subject to regulation by a regulatory
body.
(b) After 6 months , either party may request a change in rates or terms and conditions of service, unless
otherwise provided in this contract. Both parties agree to enter in negotiations concerning such changes upon receipt
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of a written request detailing the proposed changes and specifying the reasons for the proposed changes.
(c) The effective date of any change shall be as agreed to by the parties. The Contractor agrees that throughout the
life of this contract the rates so negotiated will not be in excess of published and unpublished rates charged to any
other customer of the same class under similar terms and conditions of use and service.
(d) The failure of the parties to agree upon any change after a reasonable period of time shall be a dispute under the
Disputes clause of this contract.
(e) Any changes to rates, terms, or conditions as a result of such negotiations shall be made a part of this contract by
the issuance of a contract modification.
(End of clause)
52.243-1 CHANGES--FIXED-PRICE (AUG 1987) - ALTERNATE I (APR 1984)
(a) The Contracting Officer may at any time, by written order, and without notice to the sureties, if any, make
changes within the general scope of this contract in any one or more of the following:
(1) Description of services to be performed.
(2) Time of performance (i.e., hours of the day, days of the week, etc.).
(3) Place of performance of the services.
(b) If any such change causes an increase or decrease in the cost of, or the time required for, performance of any part
of the work under this contract, whether or not changed by the order, the Contracting Officer shall make an equitable
adjustment in the contract price, the delivery schedule, or both, and shall modify the contract.
(c) The Contractor must assert its right to an adjustment under this clause within 30 days from the date of receipt of
the written order. However, if the Contracting Officer decides that the facts justify it, the Contracting Officer may
receive and act upon a proposal submitted before final payment of the contract.
(d) If the Contractor’s proposal includes the cost of property made obsolete or excess by the change, the Contracting
Officer shall have the right to prescribe the manner of the disposition of the property.
(e) Failure to agree to any adjustment shall be a dispute under the Disputes clause. However, nothing in this clause
shall excuse the Contractor from proceeding with the contract as changed.
(End of clause)
52.252-2 CLAUSES INCORPORATED BY REFERENCE (FEB 1998)
This contract incorporates one or more clauses by reference, with the same force and effect as if they were given in
full text. Upon request, the Contracting Officer will make their full text available. Also, the full text of a clause may
be accessed electronically at this/these address(es):
https://www.acquisition.gov/?q=browsefar
https://www.acquisition.gov/dfars
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(End of clause)
252.204-7012 SAFEGUARDING COVERED DEFENSE INFORMATION AND CYBER INCIDENT
REPORTING (OCT 2016)
(a) Definitions. As used in this clause--
Adequate security means protective measures that are commensurate with the consequences and probability of loss,
misuse, or unauthorized access to, or modification of information.
Compromise means disclosure of information to unauthorized persons, or a violation of the security policy of a
system, in which unauthorized intentional or unintentional disclosure, modification, destruction, or loss of an object,
or the copying of information to unauthorized media may have occurred.
Contractor attributional/proprietary information means information that identifies the contractor(s), whether directly
or indirectly, by the grouping of information that can be traced back to the contractor(s) (e.g., program description,
facility locations), personally identifiable information, as well as trade secrets, commercial or financial information,
or other commercially sensitive information that is not customarily shared outside of the
company.
Controlled technical information means technical information with military or space application that is subject to
controls on the access, use, reproduction, modification, performance, display, release, disclosure, or dissemination.
Controlled technical information would meet the criteria, if disseminated, for distribution statements B through F
using the criteria set forth in DoD Instruction 5230.24, Distribution Statements on Technical
Documents. The term does not include information that is lawfully publicly available without restrictions.
Covered contractor information system means an unclassified information system that is owned, or operated by or
for, a contractor and that processes, stores, or transmits covered defense information.
Covered defense information means unclassified controlled technical information or other information, as described
in the Controlled Unclassified Information (CUI) Registry at http://www.archives.gov/cui/registry/category-
list.html, that requires safeguarding or dissemination controls pursuant to and consistent with law, regulations, and
Governmentwide policies, and is--
(1) Marked or otherwise identified in the contract, task order, or delivery order and provided to the contractor by or
on behalf of DoD in support of the performance of the contract; or
(2) Collected, developed, received, transmitted, used, or stored by or on behalf of the contractor in support of the
performance of the contract.
Cyber incident means actions taken through the use of computer networks that result in a compromise or an actual or
potentially adverse effect on an information system and/or the information residing therein.
Forensic analysis means the practice of gathering, retaining, and analyzing computer-related data for investigative
purposes in a manner that maintains the integrity of the data.
Information system means a discrete set of information resources organized for the collection, processing,
maintenance, use, sharing, dissemination, or disposition of information.
Malicious software means computer software or firmware intended to perform an unauthorized process that will
have adverse impact on the confidentiality, integrity, or availability of an information system. This definition
includes a virus, worm, Trojan horse, or other code-based entity that infects a host, as well as spyware and
N4425521C1004
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some forms of adware.
Media means physical devices or writing surfaces including, but is not limited to, magnetic tapes, optical disks,
magnetic disks, large-scale integration memory chips, and printouts onto which covered defense information is
recorded, stored, or printed within a covered contractor information system.
Operationally critical support means supplies or services designated by the Government as critical for airlift, sealift,
intermodal transportation services, or logistical support that is essential to the mobilization, deployment, or
sustainment of the Armed Forces in a contingency operation.
Rapidly report means within 72 hours of discovery of any cyber incident.
Technical information means technical data or computer software, as those terms are defined in the clause at
DFARS 252.227-7013, Rights in Technical Data--Noncommercial Items, regardless of whether or not the clause is
incorporated in this solicitation or contract. Examples of technical information include research and engineering
data, engineering drawings, and associated lists, specifications, standards, process sheets, manuals, technical reports,
technical orders, catalog-item identifications, data sets, studies and analyses and related information, and computer
software executable code and source code.
(b) Adequate security. The Contractor shall provide adequate security on all covered contractor information systems.
To provide adequate security, the Contractor shall implement, at a minimum, the following information security
protections:
(1) For covered contractor information systems that are part of an information technology (IT) service or system
operated on behalf of the Government, the following security requirements apply:
(i) Cloud computing services shall be subject to the security requirements specified in the clause 252.239-7010,
Cloud Computing Services, of this contract.
(ii) Any other such IT service or system (i.e., other than cloud computing) shall be subject to the security
requirements specified elsewhere in this contract.
(2) For covered contractor information systems that are not part of an IT service or system operated on behalf of the
Government and therefore are not subject to the security requirement specified at paragraph (b)(1) of this clause, the
following security requirements apply:
(i) Except as provided in paragraph (b)(2)(ii) of this clause, the covered contractor information system shall be
subject to the security requirements in National Institute of Standards and Technology (NIST)
Special Publication (SP) 800-171, ``Protecting Controlled Unclassified Information in Nonfederal Information
Systems and Organizations'' (available via the internet at http://dx.doi.org/10.6028/NIST.SP.800-171) in effect at the
time the solicitation is issued or as authorized by the Contracting Officer.
(ii)(A) The Contractor shall implement NIST SP 800-171, as soon aspractical, but not later than December 31, 2017.
For all contracts awarded prior to October 1, 2017, the Contractor shall notify the DoD Chief Information Officer
(CIO), via email at osd.dibcsia@mail.mil, within 30 days of contract award, of any security requirements
specified by NIST SP 800-171 not implemented at the time of contract award.
(B) The Contractor shall submit requests to vary from NIST SP 800-171 in writing to the Contracting Officer, for
consideration by the DoD CIO. The Contractor need not implement any security requirement adjudicated by an
authorized representative of the DoD CIO to be nonapplicable or to have an alternative, but equally effective,
security measure that may be implemented in its place.
(C) If the DoD CIO has previously adjudicated the contractor's requests indicating that a requirement is not
applicable or that an alternative security measure is equally effective, a copy of that approval shall be provided to
the Contracting Officer when requesting its recognition under this contract.
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(D) If the Contractor intends to use an external cloud service provider to store, process, or transmit any covered
defense information in performance of this contract, the Contractor shall require and ensure that the cloud service
provider meets security requirements equivalent to those established by the Government for the Federal Risk
and Authorization Management Program (FedRAMP) Moderate baseline
(https://www.fedramp.gov/resources/documents/) and that the cloud service provider complies with requirements in
paragraphs (c) through (g) of this clause for cyber incident reporting, malicious software, media preservation and
protection, access to additional information and equipment necessary for forensic analysis, and cyber incident
damage assessment.
(3) Apply other information systems security measures when the Contractor reasonably determines that information
systems security measures, in addition to those identified in paragraphs (b)(1) and (2)
of this clause, may be required to provide adequate security in a dynamic environment or to accommodate special
circumstances (e.g., medical devices) and any individual, isolated, or temporary deficiencies based on an assessed
risk or vulnerability. These measures may be addressed in a system security plan.
(c) Cyber incident reporting requirement.
(1) When the Contractor discovers a cyber incident that affects a covered contractor information system or the
covered defense information residing therein, or that affects the contractor's ability to perform the requirements of
the contract that are designated as operationally critical support and identified in the contract, the Contractor shall--
(i) Conduct a review for evidence of compromise of covered defense information, including, but not limited to,
identifying compromised computers, servers, specific data, and user accounts. This review shall also include
analyzing covered contractor information system(s) that were part of the cyber incident, as well as other information
systems on the Contractor's network(s), that may have been accessed as a result of the incident in order to identify
compromised covered defense information, or that affect the Contractor's ability to provide operationally critical
support; and
(ii) Rapidly report cyber incidents to DoD at http://dibnet.dod.mil.
(2) Cyber incident report. The cyber incident report shall be treated as information created by or for DoD and shall
include, at a minimum, the required elements at http://dibnet.dod.mil.
(3) Medium assurance certificate requirement. In order to report cyber incidents in accordance with this clause, the
Contractor or subcontractor shall have or acquire a DoD-approved medium assurance certificate to report cyber
incidents. For information on obtaining a DoD-approved medium assurance certificate, see
http://iase.disa.mil/pki/eca/Pages/index.aspx.
(d) Malicious software. When the Contractor or subcontractors discover and isolate malicious software in
connection with a reported cyber incident, submit the malicious software to DoD Cyber Crime Center
(DC3) in accordance with instructions provided by DC3 or the Contracting Officer. Do not send the malicious
software to the Contracting Officer.
(e) Media preservation and protection. When a Contractor discovers a cyber incident has occurred, the Contractor
shall preserve and protect images of all known affected information systems identified in paragraph (c)(1)(i) of this
clause and all relevant monitoring/packet capture data for at least 90 days from the submission of the cyber incident
report to allow DoD to request the media or decline interest.
(f) Access to additional information or equipment necessary for forensic analysis. Upon request by DoD, the
Contractor shall provide DoD with access to additional information or equipment that is necessary to conduct a
forensic analysis.
N4425521C1004
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(g) Cyber incident damage assessment activities. If DoD elects to conduct a damage assessment, the Contracting
Officer will request that the Contractor provide all of the damage assessment information gathered in accordance
with paragraph (e) of this clause.
(h) DoD safeguarding and use of contractor attributional/proprietary information. The Government shall protect
against the unauthorized use or release of information obtained from the contractor (or derived from information
obtained from the contractor) under this clause that includes contractor attributional/proprietary information,
including such information submitted in accordance with paragraph (c). To the maximum extent
practicable, the Contractor shall identify and mark attributional/proprietary information. In making an authorized
release of such information, the Government will implement appropriate procedures to minimize the contractor
attributional/proprietary information that is included in such authorized release, seeking to include only that
information that is necessary for the authorized purpose(s) for which the information is being released.
(i) Use and release of contractor attributional/proprietary information not created by or for DoD. Information that is
obtained from the contractor (or derived from information obtained from the contractor) under this clause that is not
created by or for DoD is authorized to be released outside of DoD--
(1) To entities with missions that may be affected by such information;
(2) To entities that may be called upon to assist in the diagnosis, detection, or mitigation of cyber incidents;
(3) To Government entities that conduct counterintelligence or law enforcement investigations;
(4) For national security purposes, including cyber situational awareness and defense purposes (including with
Defense Industrial Base (DIB) participants in the program at 32 CFR part 236); or
(5) To a support services contractor (``recipient'') that is directly supporting Government activities under a contract
that includes the clause at 252.204-7009, Limitations on the Use or Disclosure of Third-Party Contractor Reported
Cyber Incident Information.
(j) Use and release of contractor attributional/proprietary information created by or for DoD. Information that is
obtained from the contractor (or derived from information obtained from the contractor) under this clause that is
created by or for DoD (including the information submitted pursuant to paragraph (c) of this clause) is authorized to
be used and released outside of DoD for purposes and activities authorized by paragraph (i) of this clause, and for
any other lawful Government purpose or activity, subject to all applicable statutory, regulatory, and policy based
restrictions on the Government's use and release of such information.
(k) The Contractor shall conduct activities under this clause in accordance with applicable laws and regulations on
the interception, monitoring, access, use, and disclosure of electronic communications and data.
(l) Other safeguarding or reporting requirements. The safeguarding and cyber incident reporting required by this
clause in no way abrogates the Contractor's responsibility for other safeguarding or cyber incident reporting
pertaining to its unclassified information systems as required by other applicable
clauses of this contract, or as a result of other applicable U.S. Government statutory or regulatory requirements.
(m) Subcontracts. The Contractor shall--
(1) Include this clause, including this paragraph (m), in subcontracts, or similar contractual instruments, for
operationally critical support, or for which subcontract performance will involve covered defense information,
including subcontracts for commercial items, without alteration, except to identify the parties. The
Contractor shall determine if the information required for subcontractor performance retains its identity as covered
defense information and will require protection under this clause, and, if necessary, consult with the Contracting
Officer; and
(2) Require subcontractors to--
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(i) Notify the prime Contractor (or next higher-tier subcontractor) when submitting a request to vary from a NIST
SP 800-171 security requirement to the Contracting Officer, in accordance with paragraph (b)(2)(ii)(B) of this
clause; and
(ii) Provide the incident report number, automatically assigned by DoD, to the prime Contractor (or next higher-tier
subcontractor) as soon as practicable, when reporting a cyber incident to DoD as required in paragraph (c) of this
clause.
(End of clause)
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Section J - List of Documents, Exhibits and Other Attachments
CONTRACT ATTACHMENTS
The following documents are appended to the contract and do not increase or alter the page count shown throughout
the rest of contract document.
J.1 Summary of U.S. Navy Contract Negotiations for Water and Wastewater Service October 2020
(This attachment will be sent as a separate file)
J.2 Methodology For Adjustment Water and Wastewater Rates
(Only the “Summary & Rate Adjustment” sheet is in this document, the actual spreadsheet will be sent as a
separate File.)
J.3 Bremerton Municipal Code Assessments, Rates, Fees, and Charges, Effective January 1, 2021.
J.4 Water and Wastewater Utility Locations, Accounts, and Metering For Naval Base Kitsap - Bremerton
J.5 Key Utility Personnel Contact List, Bremerton Naval Complex and City of Bremerton, 10 March 2021
N44255-21-C-1004
Attachment J.2
1
Methodology for Adjustment of Water and Wastewater Rates
A. RATIONALE:
(1) The parties have agreed to an approach for annually escalating or reducing rates that
tie to City of Bremerton rate changes. This method ensures an equitable treatment for all
customers of the City and provides transparency of costs to the Navy.
(2) The parties have agreed that any future rate changes applied to the Navy accounts for
contract line items (CLIN’s) 0001 (water) and 0002 (wastewater) shall be tied directly to
the weighted average of rate increases applied to all Non-Navy customers for water
and/or wastewater, respectively. For purposes of calculating rate increases to the Navy,
the Non-Navy baseline customer classes and billable units will remain fixed through the
life of the contract. Only the Non-Navy revenues generated for the Non-Navy customer
classes will vary from year to year based on the rate increases applied by the City through
revisions to the applicable City ordnances.
As an example, the Non-Navy revenue from rates in Year 1 will be compared to the Non-
Navy revenue from rates in Year 2. The Navy rates will be increased by the overall
weighted percent increase to all Non-Navy customer classes from Year 1 to Year 2. The
next year, the Non-Navy revenue from rates in Year 2 will be compared to the Non-Navy
revenue from rates for Year 3. The Navy rates will be increased by the overall weighted
percent increase to all Non-Navy classes from Year 2 to 3. This methodology will
continue through the life of the contract. The number and types of customer classes
and the billable usage used each year for the classes will always remain unchanged
from Year 1.
This approach guarantees that the Navy’s rates will adjust as the City’s rates adjust as a
whole. The Navy notes that this approach will need to be modified if the City
significantly changes its rate structure during the contract term. Example of such a rate
structure changes would include adding an additional rate block or shifting to seasonal
rates. If this should occur, the City will be required to propose how the adjustment
should be handled during the rate transition year. The Navy and the City will then
negotiate a change to the adjustment formula for the next applicable year based on the
City’s revised rate structure.
N44255-21-C-1004
Attachment J.2
2
Methodology for Adjustment of Water and Wastewater Rates
B. METHODOLOGY.
(1) In order to verify the weighted average escalator between any given year and any
year +1 of the contract, it is necessary to input the rates and charges approved by the
Bremerton City Council into the spreadsheet found in Attachment J.2 (Please note that
the actual spreadsheet is attached as a separate file from this document.) The revised rates
and charges are multiplied by the baseline usage to calculate the revenue for any year +1.
(2) The parties agree that the baseline usage provided at the beginning of the contract by
the City of Bremerton shall not change during the entire contract term. The baseline
usages for water and wastewater, respectively, are found in Attachment J.2 under the
water and wastewater spreadsheets titled “Base Year Calculations ”.
(3) The formula for the percentage change in rate and charges for any year +1 is to
divide the revenue in year + 1 by the revenue from the previous year. The formula for
these calculations are found in the Attachment J.2 spreadsheet titled “Summary & Rate
Adjustment”. Attachment J.2 also contains template spreadsheets for Years 2 through 10
for water and wastewater. These spreadsheets contain all formulas necessary to build
calculations once the City has provided the new rates. These spreadsheets for water and
wastewater are titled “Water/Wastewater Calculation”, starting with year 1 and following
for each respective year 2 through 10.
While escalations have been assumed, the same calculation principles would apply to
reductions. The spreadsheets have been developed to show the impact of different sets of
rate increases and the spreadsheet entitled “Rate Increases” shows the different rate
increase scenarios.
(4) The City will provide any revised rates and revenues for Navy review in accordance
with Attachment J.2 no less than 30 days prior to the effective date of any such
adjustments. It is anticipated that future rate adjustments will normally become effective
01 January.
N44255-21-C-1004ATTACHMENT J.2METHODOLOGY FOR ADJUSTMENT OF WATER AND WASTEWATER RATESWater WastewaterFixed Volumetric Fixed VolumetricYear 1 - 2021 Base Yr 9,426,272$ 11,201,856$ 91,277$ 1.83$ 109,695$ 4.70$ Year 2 - 20229,426,272$ 11,201,856$ 91,277$ 1.83$ 109,695$ 4.70$ Escalation Percentage0.00% 0.00%Year 3 - 20239,426,272$ 11,201,856$ 91,277$ 1.83$ 109,695$ 4.70$ Escalation Percentage0.00% 0.00%Year 4 - 20249,426,272$ 11,201,856$ 91,277$ 1.83$ 109,695$ 4.70$ Escalation Percentage0.00% 0.00%Year 5 - 20259,426,272$ 11,201,856$ 91,277$ 1.83$ 109,695$ 4.70$ Escalation Percentage0.00% 0.00%Year 6 - 20269,426,272$ 11,201,856$ 91,277$ 1.83$ 109,695$ 4.70$ Escalation Percentage0.00% 0.00%Year 7 - 20279,426,272$ 11,201,856$ 91,277$ 1.83$ 109,695$ 4.70$ Escalation Percentage0.00% 0.00%Year 8 - 20289,426,272$ 11,201,856$ 91,277$ 1.83$ 109,695$ 4.70$ Escalation Percentage0.00% 0.00%Year 9 - 20299,426,272$ 11,201,856$ 91,277$ 1.83$ 109,695$ 4.70$ Escalation Percentage0.00% 0.00%Year 10 - 20309,426,272$ 11,201,856$ 91,277$ 1.83$ 109,695$ 4.70$ Escalation Percentage0.00% 0.00%Determination of Rate Adjustment %RatesCLIN 0001 - WATER CLIN 0002 - SEWAGE
N44255-21-C-1004
Attachment J.3
N44255-21-C-1004 Attachment J.4 3 May 2021 WATER, WASTEWATER AND STORMWATER UTILITY LOCATION, ACCOUNTS & METERS NAVAL BASE KITSAP, BREMERTON ACCOUNT ACCOUNT METER METER NAME/LOCATION NUMBER NUMBER SIZE COMMODITY First and Pacific Ave (59E – Dwg 53935) 13-00030 71268530 10” Water Charleston Gate (27N – Dwg 53935) 13-00040 71269508 10” Water First St and Rainier Ave (29D – Dwg 53935) 13-00050 71268529 10” Water 143 First St/MS5 (61F – Dwg 57849) 13-00090 05454370 6” Sewage 416 S. Cambrian Ave/MS4 (24O – Dwg 57849) 13-00100 9B05771600 10” Sewage 416 S. Cambrian Ave/MS4 (24O – Dwg 57849) 13-00120 01835454 6” Sewage State HWY 304/Pass and ID (24S – Dwg 57849) 46-55650 NA NA Sewage State HWY 304/Pass and ID (24S – Dwg 57849) 46-55650 72340082 2” Water 100 S. Montgomery (26L – Dwg 57849) 2409670 NA NA Stormwater
N44255-21-C-1004
Attachment J.5
3 May 2021
City of Bremerton
Public Works & Utilities
Contacts
Thomas Knuckey
Director, Public Works & Utilities
Email: thomas.knuckey@ci.bremerton.wa.us
(360) 473-2376 – Office
Cami Apfelbeck
Water Utility Manager
Email: Cami.Apfelbeck@ci.bremerton.wa.us
(360) 473-2315 – Office
Ted Danielson
Water Operations Supervisor
Email: Ted.Danielson@ci.bremerton.wa.us
(360) 473-5929 – Office
Bob Zurbrugg
Water Maintenance
Email: Robert.Zurbrugg@ci.bremerton.wa.us
(360) 473-5249 - Office
Darrel Clauson
Sewer and Stormwater Maintenance
Email: darrell.clauson@ci.bremerton.wa.us
360-473-5327 - Office
Eric Burris
Wastewater Treatment Plant Manager
Email: Eric.Burris@ci.bremerton.wa.us
(360) 473-5448 – Office
Wayne Hamilton
Distribution Manager
Email: Wayne.Hamilton@ci.bremerton.wa.us
(360) 473-5207 – Office
2
Naval Base Kitsap - Bremerton
Public Works Shop & Utilities Program
Contacts
Emergency Dispatcher (Mechanical)
(360) 476-2325 – Office
Operations
(360) 476-2629 – Office
Ted Williams
Utility Maintenance Manager
(360) 476-4124 – Office
360-340-4097 - cell
Michael Austria
Utility Maintenance Supervisor
Email: michael.austria@navy.mil
(360) 476-2319 – Office
(360) 337-0332 – Cell
Jeremy Kirsch
Utilities Operations General Foreman
120 S. Dewey St.
Bldg. 900
Bremerton, WA 98314
Email: jeremy.kirsch@navy.mil
(360) 476-7560 – Office
360-340-2847 - cell
Tom Ingham
Mechanical Utility Engineer
Email: thomas.ingham@navy.mil
(360) 476-0912 – Office
AGENDA BILL
CITY OF BREMERTON
CITY COUNCIL
SUBJECT: Study Session Date: June 9, 2021
Proposed Public Hearing and Resolution to
adopt the 2022 CDBG/HOME Policy Plan
COUNCIL MEETING Date: June 16, 2021
Department: DCD-Block Grant
Presenter: Sarah Achaoui
Phone: (360) 473-5375
SUMMARY: The action before Council is adoption of the 2022 Policy Plan. The Policy Plan is a
document which is updated yearly which sets parameters for the management of our HUD
entitlement grant awards and provides specific information about the policies and regulations for the
use of HUD CDBG and HOME funds. This plan was released on May 28th for public comment, and
to date there have been no comments made. This is a component of our annual process and no
departures from what we’ve done in the past years.
ATTACHMENTS: 1. Staff Memo; 2. Proposed Resolution and Exhibit A-2022 Policy Plan
FISCAL IMPACTS (Include Budgeted Amount): No fiscal impacts to the City.
STUDY SESSION AGENDA: ☒ Limited Presentation ☐ Full Presentation
STUDY SESSION ACTION: ☐ Consent Agenda ☐ General Business ☒ Public Hearing
RECOMMENDED MOTION: Move to approve Resolution No. ____ adopting the 2022 CDBG/HOME
Policy Plan
COUNCIL ACTION: Approve Deny Table Continue No Action
Form Updated 01/02/2018
B5
To: Bremerton City Council
From: Sarah Achaoui
Date: June 16, 2021
Re: Public Hearing to adopt the 2022 Policy Plan
What is the Policy Plan?
The Policy plan is a document which is updated yearly which sets parameters for the management of
our HUD entitlement grant awards, provides specific information about the policies and regulations
for the use of HUD Block grant and HOME funds.
Policy Changes for 2022
1. City of Bremerton HOME funding will used to increase affordable housing stock.
2. City of Bremerton has transitioned from Fluid Review to SM Apply. This transition will make
the application process more simplified and streamlined for applicants and reviewers.
Important components of the Policy Plan
Funding Priorities
To stay consistent with the past year(s) the funding priorities for CDBG funds are as follows: Capital
Projects which can demonstrate a benefit to low/moderate income residents, City-wide Economic
Development projects, City-wide projects which create, develop, support or preserve units of
affordable housing, and Public Facility and Infrastructure projects.
FY 2021 Income Limits
All projects will utilize the HUD FY 2021 Income Limits. As a statutory requirement these income limits
which are based off the Bremerton-Silverdale MSA must be used. When FY 2022 Income Limits are
posted by HUD we will ensure all applicants for funding as well as recipients of funding receive the
new limits.
Public Comment
A 15-day public comment period commenced March 28th, ending June 14th.
DEPARTMENT OF
COMMUNITY DEVELOPMENT
MEMORANDUM
1
2022 CDBG/HOME Policy Plan
RESOLUTION NO. ____
A RESOLUTION of the City Council of the City of
Bremerton, Washington, adopting the 2022 City of Bremerton
CDBG/HOME Policy Plan.
WHEREAS, the City of Bremerton (City) is an entitlement community which
receives a Community Development Block Grant (CDBG) each year from the Department of
Housing and Urban Development (HUD), and also receives funding from HUD's Home
Investment Partnerships (HOME) fund via an inter-local agreement with Kitsap County; and
WHEREAS, the Department of Community Development Block Grant staff
estimates a 2022 CDBG allocation of $450,000 with 20% set-aside for administration; and
WHEREAS, the Department of Community Development Block Grant staff
estimates a 2022 HOME allocation of $179,600, 10% of which will be set-aside for
administration, and 15% for Community Housing Development Organization projects; and
WHEREAS, all projects must meet both a Consolidated Plan Funding Priority as
well as a Council Priority, both of which are detailed in the Policy Plan; and
WHEREAS, all funding will be allocated competitively to eligible applicants for
projects that fit the requirements set forth in the CDBG regulations at 24 CFR part 570 and
HOME regulations at 24 CFR part 92; and
WHEREAS, the Department of Community Development Block Grant staff
advertised in the Kitsap Sun and posted on the City's website on Friday, May 28th a 30-day
written public comment period commencing May 28th, ending June 14, 2021, and open for
public comment in a public hearing on June 16th; and
WHEREAS, comments received will be shared with the City Council; NOW
THEREFORE,
THE CITY COUNCIL OF THE CITY OF BREMERTON, WASHINGTON,
DOES HEREBY RESOLVE AS FOLLOWS:
SECTION 1. The recitals and findings of fact set forth in this resolution are
hereby incorporated as if fully set forth herein.
SECTION 2. The 2022 CDBG/HOME Policy Plan attached hereto as Exhibit A
is hereby adopted.
2
2022 CDBG/HOME Policy Plan
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 _____________, 2021.
____________________________________
KEVIN GORMAN, Council President
APPROVED AS TO FORM: ATTEST:
__________________________________ ____________________________________
ROGER A. LUBOVICH, City Attorney ANGELA HOOVER, City Clerk
City of Bremerton
Community Development Block Grant
2022 CDBG/HOME
POLICY PLAN
CDBG/HOME POLICY PLAN
Contents
Executive Summary…………………………………………………………………1
Community Development Block Grant Program………………………………1
CDBG Funding……………………………………………………………………….2
HOME Funding……………………………………………………………………….7
Allocation Process…………………………………………………………………..8
Policies & Regulations for Use of Funds........................................................9
Citizen Participation Plan…………………………………………………….........17
Consolidated Plan…………………………………………………………………17
Appendix A – Citizen Participation Plan
Appendix B- Funding Process
Appendix C – CDBG Eligibility Requirements & Program Rules
Appendix D - HOME Eligibility Requirements & Program Rules
Appendix E – Conflict of Interest Policy
Appendix F – Glossary
CDBG/HOME Policy Plan 2022
1
Executive Summary
The 2022 City of Bremerton CDBG/HOME Policy Plan provides guidance for applicants applying for
2022 funds on things such as eligibility, overview of the funding allocation process, regulatory
requirements and local policy decisions.
The allocation of CDBG and HOME funds are guided by the Strategic Plan which is a part of the
Consolidated Plan. Kitsap County and the City of Bremerton have prepared a Consolidated Plan for
2021-2025 in order to implement our community’s federal program funds. The purpose of the plan is to
evaluate community needs and set goals for the five year plan period. Through a Community Needs
Assessment, Housing Market Analysis and with community and stakeholder input, the City of
Bremerton has developed a Strategic Plan. The City of Bremerton’s Strategic Plan outlines the
priorities and goals which guide the allocation of funds over the five year period. The funds allocated for
the 2022 grant application cycle will be included in the Year 2, Action Plan associated with the
2021-2025 Consolidated Plan.
The priorities identified for the five year period are as follows:
•Capital projects in the City which demonstrate Low/Mod benefit
•Infrastructure and Capital improvements projects
•Projects which improve and preserve affordabl housing;
•Expand economic opportunities for very-low, low, and moderate income Bremerton residents;
•The City will reevaluate funding priorities during each program year with the release of its Policy
Plan and NOFA.
Policy Changes for 2022:
1. City of Bremerton HOME Funding priority will be for increasing affordable housing stock.
2. The NOFA will be for CDBG, housing rehabilitation, economic development microenterprise
assistance, and public facilities and infrastructure that meet the priorities outlined above and
contained in the Consolidated Plan.
COMMUNITY DEVELOPMENT BLOCK GRANT PROGRAM
WHAT IS THE COMMUNITY DEVELOPMENT BLOCK GRANT PROGRAM?
The Community Development Block Grant Program is a source of funds used in the local
community to provide decent housing, suitable living environments and economic opportunities
primarily for low and moderate income households.
The City of Bremerton is designated as an Entitlement Community by the Department of Housing
and Urban Development (HUD) and receives federal funds in the form of Community
Development Block Grant (CDBG). Kitsap County and the City of Bremerton together form a
consortium and receive an allocation of HOME Investment Partnership Program (HOME) funds.
Through an interlocal agreement between the County and the City a percentage (as determined
by HUD) of the annual allocation of HOME funds is designated for the City and the remaining
CDBG/HOME Policy Plan 2022
2
designated for the County. As the City of Bremerton is designated as a separate Entitlement
Community and therefore the City receives its own CDBG funds directly.
CDBG funds are allocated annually through the City in Requests for Funding Proposals.
HOME funds are allocated annually through a competitive grant process coordinated by Kitsap
County. Projects funded are included in the annual Action Plan submitted to HUD. Projects
funded must address needs identified in the Consolidated Plan, which is updated every five years.
CDBG FUNDS
WHAT ARE CDBG FUNDS?
The Community Development Block Grant (CDBG) program is a flexible program that provides
communities with funding to address a wide range of unique community development needs.
The program is authorized by Title I of the Community Development Act of 1974. Funds are
used to assist in the development of decent housing, create suitable living environments, and
expand economic opportunities primarily for persons of low and moderate income. All projects
funded with CDBG must meet one of the three national objectives:
1. Principally benefit low and very low income households;
2. Reduce or prevent slum and blight; or,
3. Meet an urgent need (emergency or natural disaster)
WHO IS AN ELIGIBLE APPLICANT/RECIPIENT?
Eligible applicant/recipients include:
City or County governments
Public and private nonprofit organizations (501(c)3)
Section 301(d) small business investment companies
Local development corporations
Private for-profit organizations may implement certain capital, economic development
and microenterprise activities (please contact the Block Grant Administrator to confirm if
your activity is eligible).
Faith based organizations (restrictions may apply to ensure equal employment
opportunity)
Additionally, applicants must:
Demonstrate an active governing body or board of directors or other applicable
leadership within your organization with skills and experience to provide leadership
and direction to the agency.
Demonstrate the legal, financial, and programmatic ability to administer the proposed
program/project; and,
Meet the City requirements for contracting agencies such as insurance requirements,
audit and financial requirements.
CDBG/HOME Policy Plan 2022
3
FUNDING PRIORITIES
All Projects MUST meet one of the following Consolidated Plan funding priorities:
Capital projects which can demonstrate benefit to low/moderate income residents;
Improve, create new units of, and preserve affordable housing;
Expand economic opportunities for very-low, low, and moderate income Bremerton residents;
For the 2022 Program Year the following priorities for use of funds will be:
Capital Projects which can demonstrate a benefit to low/moderate income residents
City-Wide Economic Development projects
City-Wide projects which create, develop, support, or preserve units of affordable
housing.
Public Facility and Infrastructure projects
WHAT ARE ELIGIBLE ACTIVITIES?
Please contact CDBG staff to ensure your project is both an eligible activity and meets a
national objective.
Note: The above lists are not comprehensive. For a complete list of eligible or ineligible
activities refer to CDBG regulations in 24 CFR 570.201 and 570.207
Beneficiaries of projects receiving CDBG funds must have incomes below 80% of the area
median income.
LMI Housing National Objective
If a grantee wishes to qualify a housing rehabilitation, acquisition or construction activity under
the LMI national objective, the housing national objective must be used. LMI area, LMI limited
clientele or LMI job creation may not be used.
A LMI household must occupy a structure with one unit. Two-unit structures must have
at least one unit occupied by a LMI household. If the structure contains three or more
units, at least 51 percent must be LMI occupied.
When housing rehabilitation or new construction single family housing activities are
conducted by a CDFI or as part of a HUD-approved Neighborhood Revitalization
Strategy multiple units (e.g. scattered site housing) may be aggregated for the purposes
of meeting the LMI benefit national objective.
CDBG/HOME Policy Plan 2022
Rental Housing (both new construction and rehabilitation) activities that provide or improve
permanent residential structures can only qualify as benefitting LMI households under the
Housing criteria of the LMI benefit national objective, which deals with the occupancy of units
by LMI households.
The general rule is that 51 percent of the units in each assisted structure are to be
occupied by LMI households. However, when rental housing activities are carried out by
a CDFI or as part of an approved NRSA, multiple units (e.g. scattered site housing) may
be aggregated for the purposes of meeting the LMI benefit National Objective.
Rental Rates
In order to meet the LMI housing national objective, rents in CDBG-assisted rental
projects must be set at levels which are affordable to LMI persons.
Grantees are required to adopt and make public their standards for determining
“affordable rents”
The generally accepted affordability standard is that households pay no more than 30
percent of income for rent and utilities. However, use of this standard is not required by
CDBG regulations.
Grantees may want to establish rent limits or ceilings based on local LMI limits and
bedroom sizes. However, each project must be undertaken in such a manner as to
ensure that rents are truly affordable to LMI persons.
HOW MUCH MONEY IS AVAILABLE?
CDBG programs are federally funded through the Department of Housing and Urban
Development. Funding levels are determined by HUD after the Federal Budget is finalized,
which often occurs after the program year has begun. The City of Bremerton estimates funding
levels in order to start the grant application process; therefore, funding amounts shown in the
table below are estimates. If HUD allocates a different amount to these programs than what was
estimated, actual funding awards will be increased or decreased to accommodate the
discrepancy. The estimated funds below are based on 2020 allocations and historic funding
trends.
The following table (on next page) shows an overall view of the total estimated amount of funds
available in this application cycle by the application type and funding sources. Please note that
the City of Bremerton is basing this estimate on an amount of $400,000. There is no designated
amount for application type, applicants are encouraged to apply for the amount of funding they
need to complete a project. Please note that projects with multiple sources of funding will be
more competitive than projects that are utilizing CDBG as their only funding source.
WHAT IS THE DISTRIBUTION OF CDBG FUNDS?
The CDBG program allows certain set-asides to further specific program goals. The City has set
additional funding targets to help meet local objectives. The following is the distribution for the
City of Bremerton:
4
CDBG/HOME Policy Plan 2022
5
CDBG
Planning & Administration – 20% max
City-Wide Economic Development Projects
Capital Projects which can demonstrate a low/moderate income benefit
Appendix C provides additional information designed to assist you in defining the eligibility and
national objective that your activity meets and the type of information you will need to provide in
your application.
$450,000
$5,000
Estimated 2022 Entitlement
Estimated 2022 Program Income
2022 Total $455,000
$98,000
2022 Funding Available for Grant Administration (20% of
Entitlement + Program Income)
2022 Funding Available for Grant Applications $392,000
15% available for economic development programs (if a
public service activity): $73,500
Total Remaining for Capital Projects: $318,500
*prioritization of capital projects will be for: affordable
housing projects, weatherization and minor home repair, and
projects which create suitable living environments.
HOME FUNDS
WHAT ARE HOME FUNDS?
The HOME Program was created by the National Affordable Housing Act of 1990 (NAHA). The
Housing and Community Development Act of 1992 and the Multifamily Property Disposition Act
of 1994 made important changes to the Program. The intent of the HOME Program is to:
Expand the supply of decent, safe, sanitary, and affordable housing;
CDBG/HOME Policy Plan 2022
6
Strengthen the abilities of state and local governments to provide housing;
Expand the capacity of nonprofit community based housing development
organizations; and,
Leverage private sector participation in financing affordable housing.
Beneficiaries of HOME funds – homebuyers, homeowners or tenants – must have incomes
below 80% of the area median income. The HOME program also requires a match of 25% or
greater in other non-federal funds for projects.
WHAT ARE ELIGIBLE ACTIVITIES?
The Eligible activities are defined in the HOME program regulations at 24 CFR 92.205. A list of
some of the activities follows:
Rehabilitation of residential property where property is fully repaired
New construction of residential property
Acquisition of residential property
Rental assistance payments to tenants
Relocation associated with an eligible HOME project
A small part (up to 5%) of the annual HOME allocation may be used to help pay the
operating expenses of designated Community Housing Development Organizations
(CHDOs) within the guidelines established by HUD
The following activities are generally not eligible for HOME funding:
Project reserve accounts, except for the initial 18 months of a HOME assisted new
construction project
Emergency home repair programs
Public housing units
Commercial properties
Shelters, unless they meet Section 8 Housing Quality Standards and otherwise can be
considered rental housing
Project based tenant assistance
Note: The above lists are not comprehensive. For a complete list of eligible or ineligible
activities refer to HOME regulations in 24 CFR 92.205
What are the HOME priorities for the City of Bremerton?
Preservation of affordable housing;
Increasing affordable housing opportunities for low to moderate Bremerton residents;
Rehabilitation of older housing stock to increase affordable housing opportunities.
Acquisition with or without rehabilitation of rental housing units
Rehabilitation of rental housing units
Site-Acquisition and new construction of new rental housing units.
CDBG/HOME Policy Plan 2022
HOW MUCH MONEY IS AVAILABLE?
Priorities: Projects which create or support affordable housing
Rental projects must serve households at or below 80% AMI. HOME assisted units must serve
households at or below 60% AMI, with 20% serving at or below 50% AMI.
HOME funds will be allocated via a separate process than CDBG funds. This process will be in
coordination with Kitsap County of whom the City of Bremerton participates as a part of the
Kitsap County HOME Consortium, however, the City will determine any prioritization of its own
percentage of HOME funds.
ALLOCATION PROCESS
HOW ARE FUNDS ALLOCATED?
The City of Bremerton, as a member of the Kitsap County HOME consortium will issue a joint
RFP for use of City HOME funds. The RFP, issued jointly with the City of Bremerton, will be for
HOME funded affordable housing and include both County and City HOME funds. Homebuyer
assistance will be a lower priority and funding for new construction of homeowner housing will
not be available. City of Bremerton HOME funds will be prioritized for rental and homeowner
projects including acquisition, new construction, rehabilitation and homebuyer assistance.
The City independent from the County will create a Competitive Funding Application for CDBG
funds based on its priorities for use of funds which is separate from the process used for HOME
funds. The request for funding proposals will be released in August and a city-driven process
will be used to determine funding allocations for CDBG. This process is detailed in the Citizen
Participation Plan (Appendix A). The public is encouraged to participate in the process and its
end product: the submission of an annual Action Plan to the Department of Housing and Urban
Development.
HOW CAN MY ORGANIZATION APPLY?
For the 2022 program year the application cycle will begin with the release of the Policy Plan in
June and the commencement of a 15 day public comment period. At the end of the comment
period, upon approval of the Policy Plan by the Bremerton City Council, the RFP for use of
HOME funds will be made available. The City’s CDBG funding applications will be released in
approximately July/August 2021.
Interested organizations can find the funding application and all associated information on the
City web site at http://www.ci.bremerton.wa.us/display.php?id=864. The schedule for the annual
application cycle, including the due date for applications, is also available on the web site.
Interested organizations may also contact Block Grant staff to request to be placed on the City
interested parties list to receive automatic notices about these programs.
7
CDBG/HOME Policy Plan 2022
8
WHEN WILL FUNDS BE AVAILABLE?
Funds for the programs taking place in the January 1 – December 31 program year are
generally not available until mid-summer of the program year. Timing is dependent on federal
budget approval—which is often delayed—and how quickly HUD is then able to allocate funds
to local jurisdictions. The City will not execute contracts with subrecipients until we have a
contract from HUD. Once contracts are executed CDBG and HOME funds can only be
disbursed on a reimbursement basis.
POLICIES & REGULATIONS FOR USE OF FUNDS
CDBG and HOME funds are Federal funds. Use of Federal funds may affect the way your
agency does business. If you are applying for Federal funds for the first time, you are strongly
encouraged to familiarize yourself with the requirements. A Guidebook for recipients of CDBG
and HOME funds can be found on the City web site at:
http://www.bremertonwa.gov/213/Subrecipient-CDBG-HOME-Guidebook.
You may also contact the City Block Grant Staff for additional assistance.
All new applicants for 2021, and applicants who are unfamiliar with Fluid Review will be
required to attend a Technical Assistance session on July 24th beginning at 10:00 am in the
Mayor’s Conference room on the 6th floor of the Norm Dicks Government Center. If necessary,
we may need to conduct the meeting virtually. Details will be provided closer to the date of the
TA Session.
A.GENERAL REQUIREMENTS
1. Consistency with applicable City, County, and/or State Codes and Policies
To be considered for funding, projects must be consistent with adopted codes and other
applicable policies, plans and standards
Agencies that are currently receiving County or City CDBG or HOME funds, who are
applying for funds, must be in compliance with all terms of their current agreement(s)
and must not have outstanding audit findings, monitoring findings or concerns related to
prior year’s funding.
2.Contract Retainage for Federal Compliance
City will withhold up to 10% of the award amount included in the written subrecipient
agreement until all federal compliance requirements are met.
All construction contracts between a subrecipient (ie: your agency) and contractor shall
have 10% of payment retained until fulfillment of federal compliance is documented.
3.Definition of Income
Most CDBG and HOME funded projects use income to determine who is eligible for
services or housing. Per HUD, income must be defined in one of two ways under the
CDBG and HOME programs; subrecipients must select one method which it will use for
the duration of each program/project (rental housing projects must use the Part 5
definition):
CDBG/HOME Policy Plan 2022
9
Annual income as defined in 24 CFR 5.609, referred to as “Part 5 annual
income”, or;
Adjusted gross income as defined for reporting purposes under the IRS Form
1040 long form (not IRS Forms 1040A or 1040EZ).
For more information on determining income see the Technical Guide for Determining
Income and Allowances for these programs. This guide and can be downloaded from:
http://archives.hud.gov/offices/cpd/affordablehousing/modelguides/1780.pdf
4. Project/Activity Delivery Costs
The City does not currently take project/activity delivery costs. 100% of funds will go to
each project that is awarded funds.
5.Commitment and Timely Expenditure of Funds
In order to meet regulatory requirements the City and County have established the
following policies for CDBG and HOME funded projects:
CDBG:
Job Training-Public Service Contracts: Organizations awarded CDBG funds for
public service or micro enterprise programs must be ready to enter into a written
agreement with the City during the award year and funds must be fully disbursed
by Dec. 31st of that same year.
Capital Awards:
o 1. Organizations with an award of CDBG funds for a capital project must
enter into written agreement (contract) in the award year.
If there are extenuating circumstances beyond the organizations
control and adequate progress is being made to resolve the
issues, an additional year for execution of the written agreement
will be granted to the organization.
o 2. The project must begin drawing grant funds within one year of the
contract execution date.
o 3. The project must be completed within 2 years of the contract execution
date and meet milestones included in the written agreement, including the
schedule for completion.
o 4. The Agreement will not be amended to extend the term. Organizations
unable to meet these requirements will lose their funding; funds will be re-
allocated to another eligible project.
The contract term may be considered for extension if there are
extenuating circumstances beyond the organizations control and
adequate progress is being made.
o 5. In no circumstance can a project take more than 5 years to complete.
HOME:
HOME regulations require commitment of funds within 24 months. Due to this
requirement City of Bremerton and Kitsap County (who is the contracting agency)
requires the project HOME funds be ready to commit no later than 18 months from
HUD’s Funding Agreement execution date. If after 18 months all project funding has not
been secured, the conditional commitment will be canceled and the funds will be re-
CDBG/HOME Policy Plan 2022
10
allocated. Staff will work with agencies during this time period to ensure the project is
moving forward and can meet the timeline.
Organizations awarded HOME funds must have all other funding sources committed
(documented with letters of commitment) and all HOME requirements for environmental
review and project underwriting completed before funds can be committed. Commitment
is defined as having a fully executed written agreement with Kitsap County (the
contracting agency for City HOME funds) and funds committed in HUD’s Integrated
Disbursement Information System (IDIS).
A conditional commitment of funds will be made for projects that do not have all project
funds committed at the time of the funding recommendation.
HOME funds require project completion no later than four years from HUD’s Funding
Agreement execution date. Projects using HOME funds to acquire vacant land must be
under construction within 12 months of the commitment date.
Organizations must begin drawing funds within one year of the contract execution date
(date the contract was executed) and at least annually thereafter.
Organizations unable to meet these requirements will lose their funding; funds will be
reallocated to another eligible project.
Rental properties will be required to be leased up within six (6) months of project
completion. Homeowner properties will be required to be sold within nine (9) months of
project completion.
For additional expenditure criteria and deadlines for use of 2022(and any prior years
CHDO’s will be found in the Affordable Housing RFP for use of City of Bremerton HOME
funds).
6. On-going Restrictions for CDBG & HOME Funded Capital Projects
Recipient of CDBG funds must agree to restrict the use of the property, which was
acquired and/or improved using CDBG funds, to the intended purpose for which the
funds were awarded. Projects awarded HOME funds are subject to an affordability
period which places certain restrictions on occupancy, resale, and rent for rental
properties. The City may require a recorded document to be attached to the property to
ensure the appropriate provisions are secured. See Appendix C for CDBG eligibility
requirements.
B.HOME FUNDING - SPECIFIC REQUIREMENTS
1.For more information on specific rules and requirements of the HOME program, including
determining whether your project is eligible, please see Appendix D.
C.CDBG FUNDING - SPECIFIC REQUIREMENTS
1.For more information on specific rules and requirements of CDBG, including meeting a
National Objective, please see Appendix C CDBG Eligibility & Program
Requirements.
CDBG/HOME Policy Plan 2022
11
D.FINANCIAL MANAGEMENT
1. Uniform Administrative Requirements
Agencies must comply with 2 CFR 200 Uniform Administrative Requirements, Cost
Principles and Audit Requirements for Federal Awards.
Agencies that do not meet the audit threshold for mandatory audits are encouraged to
obtain an annual audit if their operating budget is $100,000 or greater. Smaller agencies
are encouraged to obtain at least a third-party annual financial review. Block Grant Staff
will review financial information closely for all agencies submitting application.
2.Audit Requirements
Private non-profit agencies expending $750,000 or more in federal funds annually
(whether CDBG / HOME alone or CDBG / HOME in conjunction with other federal funds)
must have an annual audit conducted by an independent auditor in accordance with
OMB Circular A-133 Compliance Supplement. Agencies are responsible to meet this
audit requirement.
Agencies that do not meet the $750,000 threshold mandatory A-133 audit are
encouraged to obtain an annual audit if their operating budget is $100,000 or greater.
Smaller agencies are encouraged to obtain at least a third-party annual financial review.
Block Grant staff will review financial information closely for all agencies submitting
application.
E.PROCUREMENT
Any subrecipient using CDBG or HOME funds to purchase goods or services must have a
formalized written procurement procedure in place prior to contracting for any goods or
services. Procurement requirements are contained in 2 CFR Part 200. Additional information
on procurement requirements can be found in Section E of the CDBG/HOME Guidebook on
the City of Bremerton Block Grant Program Website.
F.ENVIRONMENTAL REVIEW
1. Environmental Review (24 CFR Part 58)
All CDBG/HOME projects must have a National Environmental Policy Act (NEPA)
compliant environmental review process completed before any funds, including funds
committed from other sources, can be spent on the project. Additional information on
environmental review requirements can be found in Section F of the CDBG/HOME
Guidebook on the City of Bremerton Block Grant Program web sites.
The costs associated with conducting a NEPA compliant environmental review for
Capital CDBG and HOME funded projects may be charged to the grant award as project
costs (HOME) or activity delivery costs (CDBG). Cost will vary depending on the level of
CDBG/HOME Policy Plan 2022
12
review and complexity of the project and include staff time, cost of publishing required
legal ads and printing costs. The cost of any studies required to complete the
environmental review (i.e. Phase I Environmental Site Assessment, Geotechnical.
Report, Cultural Site Assessment, etc.) will be in addition to the costs associated with
preparation of the NEPA environmental review and will be the responsibility of the
subrecipient.
G.EQUAL OPPORTUNITY & ACCESSIBILITY
1. Fair Housing and Equal Opportunity
All CDBG/HOME projects must comply with all of the following Federal laws, executive
orders and regulations pertaining to fair housing and equal opportunity:
a.Title VI of the Civil Rights Act of 1964: No person may be excluded from participation
in, denied the benefits of, or subjected to discrimination under any program or activity
receiving Federal assistance on the basis of race, color or national origin (24 CFR
Part 1).
b.The Fair Housing Act: Prohibits discrimination in the sale or rental of housing, the
financing of housing or the provision of brokerage services against any person on the
basis of race, color, religion, sex, national origin, handicap or familial status (24 CFR
Part 100-115).
c. Equal Opportunity in Housing: Prohibits discrimination against individuals on the
basis of race, color, religion, sex or national origin in the sale, rental, leasing or other
disposition of residential property, or in the use or occupancy of housing assisted
with Federal funds (24 CFR Part 107).
d. Age Discrimination Act of 1975: Prohibits age discrimination in programs receiving
Federal financial assistance (24 CFR Part 146).
e. For more information on eliminating discrimination visit
www.hud.gov/offices/fheo/progdesc/title8.cfm
2. Handicapped Accessibility
CDBG and HOME funded projects are subject to the following regulations governing the
accessibility of Federally-assisted buildings, facilities and programs.
a. Americans with Disabilities Act: Provides comprehensive civil rights to individuals
with disabilities in the areas of employment, public accommodations, state and local
government services and telecommunications. The Act requires certain buildings or
other facilities that receive Federal funds to be designed, constructed or altered in
accordance with standards that insure accessibility to and use by physically
handicapped people.
b.Section 504: Section 504 of the Rehabilitation Act of 1973 prohibits discrimination in
federally assisted programs on the basis of handicap.
Additional information on equal opportunity and accessibility can be found in Section G
of the CDBG/HOME Guidebook on the City of Bremerton Block Grant Program web
sites.
H.LABOR STANDARDS & CONSTRUCTION
1. Equal Opportunity for Employment and Contracting
CDBG/HOME Policy Plan 2022
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CDBG and HOME funded projects are subject to the following regulations governing
employment and contracting opportunities.
a.Equal Employment Opportunity: Prohibits discrimination against any employee or
applicant for employment because of race, color, religion, sex or national origin.
Provisions to effectuate this prohibition must be included in all construction contracts
exceeding $10,000 (41 CFR Part 60).
b. Section 3 of the Housing and Urban Development Act of 1968: Requires that, to the
greatest extent feasible, opportunities for training and employment arising from
CDBG or HOME funded projects will be provided to low-income persons residing in
the program service area.
c. Minority/Women’s Business Enterprise: Outreach to minorities and women in
contracting for services (24 CFR 85.36(e)).
2.Labor Requirements
CDBG and HOME projects must comply with certain regulations on wage and labor
standards. Pursuant to the Davis-Bacon Act, federal wage rates apply to most (but not
all) construction projects over $2,000. Applications that involve construction must
consider Davis-Bacon wage rates in the budget. The costs associated with the review of
Certified Payrolls and compliance with DBRA requirements may be charged to the grant
award as project costs (HOME) or activity delivery costs (CDBG). Cost will vary
depending on the complexity of the project
a. Davis-Bacon and Related Acts: Ensures that mechanics and laborers employed in
construction work under federally assisted contracts are paid the Federal prevailing
wage for the locality.
b.Contract Work Hours and Safety Standards Act: Provides that mechanics and
laborers employed on federally assisted construction jobs are paid time and one-half
for work in excess of 40 hours per week.
c. Copeland (Anti-Kickback) Act: Governs the deductions from paychecks that are
allowable.
More information on Davis Bacon requirements can be found in Section I of the
CDBG/HOME Guidebook City of Bremerton Block Grant Program web site.
3.Lead-Based Paint Hazard (24 CFR Part 35)
Housing built before 1978, assisted with HOME or CDBG funds, is subject to the Lead-
Based Paint Poisoning Prevention Act. The law imposes requirements related to:
Disclosure of known hazards and what has been done to reduce them;
Treatment, relocation during treatment, and ongoing inspection of units.
Project feasibility is an important consideration for housing with lead-based paint.
Recipients of CDBG or HOME funds will need to be aware of the potential for additional
time and cost associated with lead-based paint hazards. Information on Lead-Based
Paint requirements can be found in Section I of the CDBG/HOME Guidebook on the City
of Bremerton Block Grant Program web site.
4.Compliance with Codes & Standards for Rehabilitation and New Construction
a.All capital projects funded with CDBG or HOME must comply with local building and
fire codes.
b.All HOME funded Rehabilitation projects must comply with the Rehabilitation
Standards adopted by the City of Bremerton Block Grant Program.
c.All rental housing units purchased and/or rehabilitated with CDBG or HOME must
pass a Uniform Physical Conditions Standards inspection.
CDBG/HOME Policy Plan 2022
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d. All housing must comply with the applicable accessibility requirements for persons
with disabilities.
I.REPORTING & MONITORING
All programs and projects funded with CDBG or HOME funds will be required to submit
quarterly reports. Reports will be provided by the Block Grant Program and may be
submitted electronically. Annual on-site monitoring is conducted by staff for all open
contracts. A monitoring checklist is used by staff to review compliance with the requirements
of the written agreement and federal regulations. Agencies will be contacted at the end of
the program year to schedule the monitoring visit.
J.ACQUISITION & RELOCATION
1. Uniform Relocation Assistance & Real Property Acquisition (49 CFR Part 24)
These regulations apply to any federally-assisted project involving acquisition, demolition
or rehabilitation. Proposals for CDBG and HOME funded projects that are likely to
cause displacement of people or businesses are discouraged. Any project that is likely
to cause displacement must include relocation assistance payments in the budget and
be consistent with the Federal Uniform Relocation Act. Projects which trigger this
regulation must follow the Anti-displacement and Relocation Assistance Plan which can
be provided to you by request. If your project includes acquisition, rehabilitation or
demolition you are strongly urged to discuss the requirements with Block Grant staff
before entering into any legally binding agreements.
2. Minimizing the Loss of Low and Very Low Income Dwelling Units (24 CFR Part 42)
Any CDBG/HOME proposal that would directly result in any occupied or vacant
occupiable low and very low income dwelling units being (1) demolished, or (2)
converted to a use other than as low and very low income housing must include a
realistic plan to provide replacement housing within three years of the commencement of
the demolition or rehabilitation relating to conversion. Projects which trigger this
regulation must follow the Anti-displacement and Relocation Assistance Plan which
can be accessed by making a request to City Block Grant staff.
CITIZEN PARTICIPATION PLAN
HUD requires a Citizen Participation Plan be adopted by jurisdictions receiving CDBG and
HOME funds. The plan details the process used by the City in development of the Consolidated
Plan and annual application cycle which results in the Action Plan submission to HUD. The City
of Bremerton Block Grant Program Citizen Participation Plan can be found in Appendix A.
CONSOLIDATED PLAN
CDBG/HOME Policy Plan 2022
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WHAT IS THE CONSOLIDATED PLAN?
The Consolidated Plan rolls the planning, application and performance reporting requirements
of several programs run by HUD into one process and one document. In our community the
Consolidated Plan covers CDBG (Community Development Block Grants) and HOME (grant for
affordable housing) programs jointly for the City of Bremerton and Kitsap County. The plan
covers a 5-year period submittal of the 2022 action plan will be for year two.
The Consolidated Plan requires a jurisdiction to identify all of its housing and community
development needs, and then develop a long-term strategy for meeting those needs. A key part
of the strategy is setting priorities. The Plan identifies priority housing needs, non-homeless
special needs, homeless needs, economic development and community development needs.
The Consolidated Plan also indicates what programs and resources will be used over the 5-year
planning period. The plan contains objectives and strategies to address the identified needs
and estimates the resources needed to fund activities to address the different needs.
WHAT ARE THE KEY PARTS OF THE PLAN?
A. Housing & Community Development Needs Assessment
This is the part of the Plan that has U.S. Census Bureau information and other
information which presents a picture of the jurisdiction. People are the focus of the
“Needs” section of the plan. The emphasis is on the human side of housing and
community development including the needs of homeless people, people with special
needs and those who are low-income.
B. The Housing Market Analysis
This part of the Plan describes the physical “bricks and mortar,” side of housing – the
supply side of housing. It looks at what housing exists. When the housing conditions in
this part of the plan are lined up with human needs in the previous part of the plan, a
clear picture of what must be done should emerge.
C. The Strategic Plan
The Strategy is the part of the Consolidated Plan where the County and City sets out
how it intends to use its CDBG and HOME funds from HUD’s Department of Community
Planning and Development over the next five years. The strategy must declare what
priority the local government will give to the various housing and community
development needs identified earlier in the Consolidated Plan; the activities designed to
respond to those needs; and the different geographic areas where needs exist.
D. Annual Action Plan
The Action Plan is the one-year plan a jurisdiction must have to show how it is carrying
out its long-term Strategic Plan. It shows how the jurisdiction will spend its CDBG and
HOME money in the upcoming year. The City of Bremerton use an annual application
process through which funds are competitively awarded.
CDBG/HOME Policy Plan 2022
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Note: The full text of the Consolidated Plan is available on the City of Bremerton web sites and
also available upon request.
GLOSSARY
A Glossary of terms has been included in Appendix F.
Appendix A
Appendix A
Citizen Participation Plan
(Updated 2/26/21)
Appendix A
CITY OF BREMERTON
CITIZEN PARTICIPATION PLAN
Introduction
The City of Bremerton receives both Community Development Block Grant (CDBG) and
HOME Investment Partnership (HOME) funds. The City receives its own CDBG funds
as an entitlement, and HOME funds through its membership in a Consortium with Kitsap
County. The City of Bremerton is committed to assuring opportunities for citizen
involvement in decisions concerning activities taking place within the community.
Each year the City of Bremerton is eligible to receive CDBG and HOME funds. There
are specific rules and regulations governing the allocation and use of the funds,
including provisions for citizen involvement in decision making. In order to facilitate
citizen involvement, the City has adopted a Citizen Participation Plan.
Purpose
The purpose of the Citizen Participation Plan is to provide an on-going mechanism to
ensure widespread citizen participation whereby all citizens have an opportunity to fully
express their needs and wishes for community improvement. Special efforts will be
made to encourage participation by:
Low- and moderate-income persons, particularly those living in blighted areas.
Residents of predominately low- and moderate-income neighborhoods.
Minorities and non-English speaking persons, as well as persons with
disabilities.
This plan provides opportunities for representation of all of the citizens of the City of
Bremerton by allowing them to have a voice in the decision-making process and giving
them greater power and control over activities taking place within their community.
Annual Allocation Process / Action Plan Submission
The City of Bremerton as an entitlement jurisdiction will conduct a competitive annual
process to determine allocation of CDBG and HOME funds. The public is encouraged
to participate in the process and its end product—the submission of an annual Action
Plan to HUD.
A.Notice of Funding Availability & Application
Annually generally in the spring or early summer a legal ad will be published in the
newspaper of record to announce funding availability and provide an opportunity for
comment on the CDBG/HOME Policy Plan. This notice will begin a 30-day comment
period on the Policy Plan (including the Citizen Participation Plan) and include the
date and time of public hearings to take citizen comments. Notifications will also be
sent to any agency or organization who requests to be placed on our interested
parties email list.
Appendix A
Upon approval of the Policy Plan by the Bremerton City Council, information about
the Request for Funding Proposals and mandatory technical assistance session for
first time applicants will be available by request in writing to:
City of Bremerton, Community Development Block Grant
345 6th Street, Suite 100, Bremerton, WA 98337-1873
http://www.bremertonwa.gov/209/Consolidated-Planning
or by contacting Sarah Achaoui by email at: sarah.achaoui@ci.bremerton.wa.us or
by phone at: 360-473-5375
B.Technical Assistance
Techincal assistance information for potential applicants for funding will be found in
Appendix B.
At any time, any citizen may contact the City Block Grant staff for technical
assistance, help with an application or general information in relation to programs
described in this Plan. The Department will help citizens understand CDBG and
HOME funded programs, the procedures for submitting proposals, the Citizen
Participation Plan and other program requirements so they can effectively participate
in CDBG and/or HOME programs and the funding process.
Conflict of Interest
a.No member of the Project Review Committee (PRC) shall be beneficially
interested, directly or indirectly, in any grant applications which may be made by,
through or under the recommendation of the PRC, in whole or in part, or which may
be made for the benefit of his or her office, or accept, directly or indirectly, any
compensation, gratuity or reward in connection with such contract from any other
person beneficially interested therein (from RCW 42.23.030).
b.No member of the PRC shall engage in any activity, including participation in the
selection, award, or administration of a grant award or contract if a conflict of interest,
real or apparent, exists.
c.Additional information on Remote Interest can be found in the full Conflict of
Interest Policy under Appendix D.
C.Funding Recommendations & Action Plan
Organizations submitting applications will be notified whether or not the Project
Review Committee (PRC) has recommended their proposal for funding. The City
Council will consider the staff recommendation, will hold a public hearing on the
proposal, will take public testimony and will adopt the funding package. Notifications
will include the date, time and place of the public hearings.
All projects approved for funding will be included in the City’s Action Plan. A
summary of each Action Plan will be published in the newspaper of record and on
the City’s website. The summaries will describe the contents and purpose of the
Action Plans, and include a list of locations where copies of the entire proposed
Appendix A
plans may be examined. Citizens will be provided a period of 30 days to review and
comment on the plans. Comments or views of citizens will be considered, and a
summary of any comments or views not accepted and the reasons therefore, will be
attached to the final Action Plan which will be submitted to HUD.
The City of Bremerton will submit the Action Plan, including the projects proposed to
be funded, to HUD no later than November 15th of each calendar year, unless HUD
instructs the City not to submit until an appropriations bill has been enacted and
HUD has notified the City of Bremerton of our actual allocation amounts.
Five Year Consolidated Plan
The Consolidated Plan is the result of a process set forth by the Department of Housing
and Urban Development (HUD) to provide a planning and application process for the
CDBG and HOME programs within a single document. The Kitsap County HOME
Consortium is required to submit the Consolidated Plan for the HOME participating
jurisdiction (which consists of Kitsap County and the City of Bremerton). The
Consolidated Plan is available online at:
http://www.bremertonwa.gov/209/Consolidated-Planning (scroll down for a link to the
documents)
A printed copy may be requested from the City of Bremerton Block Grant Divisions
There are a number of specific elements in the 5-Year Consolidated Plan, including:
Needs Assessment: an assessment of housing needs (primarily of low and
moderate income people) and needs of homeless people;
Housing Market Analysis: an analysis of the City of Bremerton’s and Kitsap
County's housing market;
Strategic Plan: a discussion of the City of Bremerton’s and Kitsap County's
priority needs to establish goals and objectives for implementing strategies
which address housing and community development activities;
Citizen Participation Plan (Updated within the annually updated Policy Plan)
Annual Action Plan: describes the activities that will be undertaken to
address priority needs utilizing HOME and CDBG grant funds during the
upcoming program year (Submitted Annually); and
Consolidated Annual Performance and Evaluation Report (CAPER):
describes how funds were used in activities that provided benefits to low and
moderate income individuals and families during the previous program year.
(Submitted Annually)
Governments, service providers, citizens, and non-profit/for-profit agencies are
encouraged to identify needs and priorities, assist in the development of strategies, and
to participate in the annual allocation process. The following are specific opportunities
for citizens to participate in the development of the information to be incorporated in the
Consolidated Plan, which is updated every five years:
1. At least one community meeting will be held to obtain the views of citizens, public
agencies, and other interested parties concerning housing and community
development needs, including non-housing community development needs and
priorities during development of the plan.
Appendix A
2. The City of Bremerton will coordinate with the Bremerton Housing Authority (BHA) to
encourage participation of residents of public and assisted housing and other low-
income residents of targeted revitalization areas, in the process of developing and
implementing the Consolidated Plan.
3. Agencies working with low- and moderate-income persons, particularly those living
in blighted areas and residents of predominately low- and moderate-income
neighborhoods, minorities, non-English speaking persons, and persons with
disabilities will be contacted to encourage participation in the development of the
Consolidated Plan.
Amendments to the Annual Action Plan
Citizens will be notified and have an opportunity to comment on any substantial
amendments proposed to the Annual Action Plan.
Substantial Amendments will be published in the City’s newspaper of record and be
subject to a 30-day public comment period to allow for comment prior to
implementation of the proposed amendment. For any amendments made as a result
of the COVID-19 Pandemic and as a response to use of any CDBG-CV funding the
City will utilize a 5 day public comment period as outlined by HUD. Substantial
Amendments may be forwarded for review by the appropriate PRC prior to
submission to the Bremerton City Council for final approval. Comments or views of
citizens will be considered at the public hearing, and a summary of any
comments or views not accepted and the reasons therefore, will be attached to the
substantial amendment of the final Action Plan which will be submitted to HUD.
Substantial amendments include:
Changes in the use of CDBG or HOME funds from one eligible activity to another
Adding a new activity
A substantial change to the purpose, scope, location or beneficiaries of the
project as defined in the application for funds and approved by the PRC.
CDBG or HOME activities awarded funds which have a substantial change in the
purpose, scope, beneficiaries, location or budget will be evaluated by Block Grant
Staff and may be required to submit a new application for funding in the next
application cycle.
Projects not expending their full CDBG or HOME award will not trigger a substantial
amendment. These funds will be re-obligated to new projects during the following
year’s regular application cycle.
Minor Changes: Any request for a change in the amount to be expended on a
program or project budget line item, or a minor change to the purpose, scope,
location or beneficiaries of the project as defined in the application for funds, shall
not be considered a Substantial Change requiring citizen notification and Annual
Action Plan amendment; however, prior written approval of these changes must be
obtained from the appropriate Block Grant Administrator.
Appendix A
Minor project changes may need to be formalized as an amendment to the sub-
recipient Agency’s contract with the City. The Agency will submit a written request for
change to the Block Grant Administrator stating the specific reasons for the requested
increase or decrease in funding, or change in purpose, scope, location or
beneficiaries. All requests will be reviewed, and approved or denied by the Block Grant
Administrator.
Performance Reports
1. The City of Bremerton Block Grant Division will prepare and submit a Consolidated
Annual Performance and Evaluation Report (CAPER) to HUD no later than March
31st of each year for the previous calendar year.
2.The CAPER will be made available for public review. Notice will be published in the
newspaper of record and copies will be available on the City’s website:
City of Bremerton: http://www.bremertonwa.gov/198/Federal-Grants---CDBG
scroll down to the year and CAPER file desired.
3. Citizens will be provided a period of at least 15 days to review and comment on the
CAPER. Comments or views of citizens will be considered in the report, and a
summary of any comments or views not accepted and the reasons therefore, will be
attached to the CAPER and submitted to HUD.
Public Hearings
By law, public hearings are required in order to obtain the public’s view and to provide the
public with the City’s responses to public questions and proposals. Annually a public
hearing will be held in spring for the approval of the next year’s Policy Plan. A second
hearing is held in November to review the proposed use of funds and adopt the Annual
Action Plan.
Notification of the public hearings and of comment periods will be published in the
newspaper of record and will afford citizens, public agencies, and other interested parties
a reasonable opportunity to examine the proposed plans and to submit comments.
City of Bremerton public hearings will be held during Bremerton City Council meetings,
which are held every first and third Wednesday of the month, at 5:30 pm in the meeting
chambers of the Norm Dicks Government Center. Bremerton City Council agenda may
be obtained at http://www.ci.bremerton.wa.us/155/City-Council.
Public Comments
Interested persons may submit comments in writing during the public comment periods,
or orally at the public hearings. Written comments should be directed to:
Appendix A
Sarah Achaoui
Community Development Block Grant Administrator
City of Bremerton
345 6th Street, Suite 100
Bremerton, WA 98337
Complaints
All written citizen complaints will be referred to the appropriate person(s) or agencies for
action. Under normal circumstances, the Block Grant Division will respond to the person
making the complaint within 15 days. All complaints and responses will be kept on file.
Resources
Newspaper of Record: Notification will be placed in the following newspaper under
Legal Notices at least ten days before a public meeting is held concerning a program
described in this plan:
City of Bremerton Block Grant – The Kitsap Sun
Notices may also be published on City website:
City of Bremerton Block Grant Program:
http://www.bremertonwa.gov/198/Federal-Grants---CDBG
The notice will indicate when and where the public meeting will be held. Meetings are
often held at the following location:
Norm Dicks Government Center, 1st Floor Meeting Chambers
345 6th Street
Bremerton, WA 98337
Appendix B
Appendix B
Funding Process
Appendix B
Introduction
The City of Bremerton is an entitlement community, and uses a competitive application
process to find the best subrecipients to implement programs and activities around the
City.
The City has an independent funding process for its CDBG funds based on the
prioritization of the City Council and utilizes a Project Review Committee to assist in
making funding determinations. However the City still participates with the Housing and
Homelessness Program (which administers Homeless Housing (HHGP), Affordable
Housing (AHGP), and Consolidated Homeless Grant (CHG) Program) which has a
combined funding & application process. These funds typically go to projects and
programs which benefit the Homeless.
This combined process includes a single application for funds, a single Grant
Recommendation Committee (GRC) process and funding recommendation for use of
HOME funds and Homeless Housing Grant Program. Funding recommendations are
approved by the Kitsap Board of Commissioners for County CDBG/HOME funds and by
the Bremerton City Council for City CDBG/HOME funds.
For the 2022 application process the City of Bremerton will use the fluid review online
system. This system will allow for a more streamlined application and review process.
Applicants will no longer be required to provide paper copies of the application.
Applications will be made available in a format accessible to persons with disabilities
upon request.
Application submittal instructions and due date are included in the Notice of Funding
Availability (NOFA). The NOFA will be published on June 23, 2021. Applications must
be submitted online and require access to the internet.
2022 Program Year Funding Specifics:
The 2022 Program Year will have two competitive funding applications for:
•City-Wide Economic Development which includes job training programs;
•Capital Projects in the City which can demonstrate low/mod clientele or area
wide benefit.
•Public Facility and Infrastructure Projects.
Specific funding amounts for these applications and RFP will be detailed in the Notice of
Funding availability which will be released to the public on June 23, 2021.
Application Review & Project Review Committee Recommendation
Process
Appendix B
On June 23, 2021 the City will publish a Notice of Funding Availability. Within
this document will be information about the two funding applications which have
the following priorities:
-Capital Projects in the City which can demonstrate a low/mod clientele or area wide
benefit. Projects can include affordable housing, weatherization and minor home repair
or projects which create suitable living environments for Bremerton residents and
-City-wide economic development projects including job training programs.
The Grant Recommendation Committee (GRC) will be used to review applications for
HOME funds through the coordinated grant process. The City of Bremerton uses a
separate Project Review Committee to review applications for CDBG funds.
The Project Review Committee must adhere to the Conflict of Interest Policy in
Appendix C.
Applications will be initially reviewed by Block Grant Staff to determine compliance with
technical requirements including eligibility for CDBG and/or HOME funds. Applications
which are found not eligible for CDBG, HOME, Homeless Grant Program or Affordable
Housing funds, will be disqualified and the applicant will be notified. Eligible applications
will be reviewed and evaluated by staff for organizational and financial capacity, will be
interviewed by the Project Review Committee, and a recommendation will be provided
by the Project Review Committee and forwarded to City Council. The Council will review
all recommendations, and select the projects for funding based how they address
needs & objectives identified in the 2021-2025 Consolidated Plan. The details of the
multi-level review process are listed below:
Stage 1: Qualification Review
Applications are reviewed for potential disqualification using the following process:
1.Applications are reviewed for completeness, soundness, and eligibility against the
following criteria. Applications meeting one or more will be disqualified. At least two
different staff members must agree that an application should be disqualified.
a.Amount requested is not consistent among narrative questions, Sources of
Financing form, budget form, and/or applicant information;
b.Missing or blank attachments or forms or using old versions of forms;
c.Project or applicant organization is not eligible for any of the funding sources;
d.Project does not meet a priority identified in the City of Bremerton Consolidated
Plan (2021-2025) or does not meet a Bremerton City Council funding priority.
e.Wrong application type is submitted for project.
Appendix B
2. Applicants will be notified of the results of the Stage 1 Review via email, either:
a. Application is moving to Stage 2 and the applicant will be contacted to schedule
an interview; or
b. Application is disqualified and the basis for disqualification is provided.
Stage 2: Review and Scoring
Applications are reviewed and scored for organizational capacity, financial
soundness, and project priority.
1. Staff members review and score all areas of the application utilizing scoring
criteria specific to each application type.
2. Project Review Committee (PRC) members make funding recommendations
using the following process:
a. Review, evaluate, and score each application using review and scoring guides
specific to each application type;
b. Conduct interview with each applicant and score applicant interviews;
interview length will depend on application type.
CDBG Economic Development will have interviews consisting of the
following:
o 20 minutes in length which includes 10 minute agency presentation
and 10 minute question/answer.
Capital applications will have interviews consisting of the following:
o 35 minutes in length which includes 15 minute agency presentation
and 20 minute question/answer.
c. Assign a priority ranking and recommend funding awards to applications.
Stage 3: Funding Awards
The funding recommendations go through a multi-step process, prior to finalizing
the award amount.
1.Project Review Committee (PRC) – All Stage 2 applications will have a final
score comprised of the staff application review score, PRC application review score,
and PRC interview score. The PRC will use the finalized score of applications to
assist in making the funding recommendations and contingencies.
2.City of Bremerton City Council- The City Council receives the recommendations
from the Project Review Committee, holds a public comment period and a public
hearing, and makes awards and contingencies.
3.Federal CDBG and HOME funds- Applications awarded CDBG and HOME funds
must be included in an Action Plan associated with the 2021-2025 Consolidated
Appendix B
Plan and submitted to HUD for approval. The Action Plan cannot be finalized until
the City of Bremerton receives the federal award amounts from HUD.
4. Final Awards – Funding recommendations were made based on estimated
funds. Once the actual amounts are known awards will be adjusted based on the
contingency set by the PRC’s and approved by the Bremerton City Council.
Project Review Committee
The Project Review Committee (PRC) will be formed consisting of three City of
Bremerton staff members (Director-Department of Community Development,
Assistant Finance Director, Community Development Project Assistant), one
member from City Council, one representative from the Planning Commission and
two citizens at large. (If a representative from the Planning Commission is
unavailable, another citizen representative will serve in their place). The role of this
committee is to read all applications and complete independent, scored reviews,
review projects for community need and benefit, review evaluations, conduct
interviews, and discuss, rank and recommend projects for funding. The appointees
to this committee are appointed by the Mayor and confirmed by Bremerton City
Council.
The PRC will provide recommendations to City Council and the Council will have the
opportunity to approve all the final recommendations.
Applicant interviews will be conducted with the PRC. Applicants will have the
opportunity to present their project and the PRC will have an opportunity to ask
questions. At the conclusion of the interviews the PRC will formulate a funding
recommendation for approval by the City of Bremerton City Council.
Appointments for PRC members are made annually. PRC members are appointed
to serve a two year term and can be re-appointed to serve successive terms and/or
additional terms.
Technical Assistance
All applicants for funding who have never received City CDBG funding before, or
have never used the fluid review system will be required to attend the technical
assistance session. During the session, staff will provide information to citizens
concerning who can apply for funds, funds expected to be available, the range of
activities that may be undertaken, priorities for funding, application submission
requirements including technical assistance in filling out the application, the
application deadline, and how decisions concerning funding will be made. There will
also be a workshop on how to use the Fluid Review system.
Appendix B
In addition to the mandatory Technical Assistance described above, City Block Grant
staff is also available by appointment for one-on-one Technical Assistance to
provide guidance to citizens and organizations regarding specific project
considerations. Please contact Block Grant staff to set up an appointment.
At any time, any citizen may contact the City Block Grant staff for technical
assistance, help with an application or general information in relation to programs
described in this Plan. The Department will help citizens understand CDBG and
HOME funded programs, the procedures for submitting proposals, the Citizen
Participation Plan and other program requirements so they can effectively participate
in CDBG and/or HOME programs and the funding process.
This technical assistance session, for CDBG applicants will be held on July 24,
2021, from 10:00 am-12:00 pm at the Norm Dicks Government Center in the
Mayor’s Conference room. It may be necessary that this meeting take place virtually.
This will be determined closer to the meeting date.
Appendix C
Appendix C
CDBG Eligibility Requirements & Program Rules
Appendix C
CDBG NATIONAL OBJECTIVES
AND ELIGIBILITY REQUIREMENTS
Every CDBG activity must meet a national objective and must be eligible in order to be funded, and
each CDBG applicant must be able to demonstrate eligibility based on data collected. The following
information is provided to assist you in defining the eligibility and national objective that your activity
meets and the type of information you will need to gather from the population you serve to provide to
the City Block Grant office. Specific regulations that govern the CDBG program are available the Block
Grant office.
What are the National Objectives? (Benefit Criteria)
An eligible CDBG activity must either
I. Principally benefit low and very low income
A. Area Benefit –
a.Activity which is available to benefit all the residents of an area which is primarily
residential.
b. At least 51% of beneficiaries are low or very low income persons/households.
c. Applicants will be responsible for defining the service area and City staff will check
to ensure that it meets the Low Moderate Income (LMI) criteria.
B. Limited Clientele
1. At least 51% of beneficiaries are low or very low income persons/households
a. Presumed Benefit
b. Agency Requires Client Information
c. Income Eligibility Requirement (Direct Benefit)
d. Nature/location
2. Removal of Architectural Barriers
3. Assistance to Owners of Microenterprises
4. Employment Support Services
C. Housing Activities (Residential)
a. 51% of units must be occupied by low-and moderate-income households.
b. Affordable rents must be maintained for 5 years
D. Job Creation or Retention - Economic Development
a. Must be located in a predominantly Low/Moderate (L/M) income neighborhood and
serve the L/M income residents; or
Appendix C
b. Involve facilities designed for use predominantly by L/M income persons; or
c. Involve the employment of persons, the majority of whom are L/M income persons.
II. Reduce or Eliminate Blight
III. Meet an Urgent Need
A. Urgent Need would be a natural disaster or federally declared disaster.
NOTE: The vast majority of CDBG activities funded are designed to benefit low and very low
income persons and households.
How Does A Project Meet a National Objective?
I. Principally benefit low and very low income
To meet this national objective, an applicant must document that the proposed project will benefit
predominantly low and very low income persons or households. A low income person/household
is one whose annual income does not exceed 80% of area median income -- a very low income
person/household is one whose annual income does not exceed 50% of the area median
income. HUD Income Limits for Bremerton are included in the Application each year. There are
several different ways that CDBG activities can benefit low and very low income persons:
A. AREA BENEFIT
This criteria allows a project located in principally residential area to meet a National
Objective by demonstrating that, based on the demographics of a project’s defined
service area, at least 51% of the residents are low or very low income. Certain activities
are a natural fit for area benefit, as they serve a geographic area, such as parks,
neighborhood facilities, community centers and streets/sidewalks.
Please contact the City Block Grant office for maps and more information on
documenting your service area and determining eligibility under Area Benefit.
Appendix C
Applicants must:
Attach a map with the boundaries of the project's service area delineated (the
surrounding geographic area in which all or most of the people benefiting from the
project reside).
Explain why that particular geographic area is the service area for the project;
Indicate on the map residential and commercial areas within the service area
boundary; and
Provide documentation that 51%(City) or more of the residents within the service
area are low and very low income persons/households utilizing the most recent
census data as provided by HUD. Please contact the City or Block Grant office for
maps and more information on documenting your service area.
B. LIMITED CLIENTELE
An activity which benefits a limited clientele, at least 51% of whom are low or very low
income persons/households. There are four types of activities in this category:
1. Presumed Benefit -- An activity may benefit one of the following groups who are
presumed by HUD to be principally low and very low income: abused children,
battered spouses, elderly persons, handicapped persons, homeless persons, illiterate
persons, migrant farm workers and persons living with HIV/AIDS.
Applicants must:
Demonstrate that the facility or service is designed for and used predominantly
by one of the groups identified above.
Demonstrate that your clientele meets HUD’s definition for the presumed group
you serve, for example, homeless individuals must meet HUD’s definition and
documentation requirements at
https://www.onecpd.info/resources/documents/HomelessDefinition_Re
cordkeepingRequirementsandCriteria.pdf
2.Require documentation on family size and income in order to show that at
least 51 percent of the clientele are low income – This means your program
can serve low and moderate income clientele if at least 51% of your clientele are
low income. Agencies must keep information on client income and family size
which can document whether or not 51% or more of the clientele are persons
whose family income does not exceed low and moderate income limits for Kitsap
County. Note: Income qualification criteria from other programs (such as state
Appendix C
poverty guidelines) may be substituted provided those criteria are at least as
restrictive as the HUD income limits.
Applicants must:
Provide documentation of the total number of clients/households served in
2021 (if this is an existing service);
State what percent of the clients/households served in 2021 were low or very
low income (or met criteria that are stricter);
Provide a copy of the income qualification criteria that were used to screen
clients and to determine the percent that were low and very low income;
Provide a copy of the client intake form highlighting the questions regarding
family size and income levels; and
Agree to maintain documentation of the client's incomes for the CDBG contract
period.
3. Income Eligibility Requirements (Direct Benefit) -- This means that the agency
uses income screening to limit the benefits of the CDBG funded activity to only
those persons who are low and very low income. For example, a housing
counseling program would screen potential clients and use the CDBG funds to pay
for the counseling only of those who are income eligible.
Applicants must:
Screen clients by family size and income;
Provide a copy of the income qualification criteria that were used to screen
clients to determine low and very low income status;
Provide a copy of the client intake form highlighting the questions regarding
family size and income levels; and
Describe how the program/project would limit the benefits of the CDBG funded
activity exclusively to low and very low income persons/households.
4. Nature/Location of Activity Allows Conclusion of Primarily Low and Very
Low Income Benefit -- This means that the activity is of such a nature and in such
a location that it may be concluded that the clientele will be primarily low and very
low income; for example, free childcare in an assisted housing project.
Applicants must:
Appendix C
Explain how the nature, and if applicable, the location of the proposed project,
establishes that it is used primarily for low and very low income persons.
In addition to the four activities described above, the following activities may
qualify under the limited clientele national objective.
•Removal of Architectural Barriers
A project which removes material or architectural barriers which restrict the mobility and
accessibility of elderly or handicapped persons to publicly owned and privately owned
non-residential buildings, facilities and improvements, and the common areas of
residential structures containing more than one dwelling unit is considered a limited
clientele activity. Note: This refers to the removal of existing barriers. It does not apply
to new construction.
•Assistance to Owners of Microenterprises
When assistance is to be provided to a microenterprise (a commercial enterprise that has
five or fewer employees, one or more of whom owns the enterprise) the owner must
qualify as low or moderate income. Note: for microenterprise projects under the limited
clientele national objective justification, the low income threshold applies only to the
owner, there are no income requirements for the workers the owner employs.
•Employment Support Services.
If CDBG assistance is only provided for training or supportive services (peer support
programs, counseling, child care, transportation, and other similar services) to assist
business(es), the percentage of low and moderate income persons assisted may be less
than 51% if the proportion of the total cost borne by CDBG funds is no greater than the
proportion of the total number of persons assisted who are low or moderate income. For
example: A new business moves into town and begins an on-site day care program for
workers. The total cost of the day care is $10,000. There are 40 children, 3 of which
meet qualifications as low and moderate income. The maximum amount chargeable to
the CDBG program is $750.00. ($10,000/40 =$250 X 3 = $750).
Applicants must:
Maintain data documenting the total cost of the service, Screen clients by family size
and income; and provide a copy of the client intake form highlighting the questions
regarding family size and income levels;
Appendix C
C. Housing Activities
These are activities providing or improving permanent residential structures which are or will
be occupied by low and very low income households. It does not include group homes or
shelters for the homeless, which are considered limited clientele activities.
Applicants must:
Maintain a copy of the written agreement with each landlord or developer receiving
CDBG assistance indicating the total number of dwelling units in each multi-unit
structure assisted and the number of those units which will be occupied by low and
moderate income households after assistance.
51% of these units must be available to low/moderate income.
Maintain records on the total cost of the activity, including both CDBG and non-CDBG
funds.
Screen households for family size and income eligibility.
For rental housing, maintain records on rent charged (or to be charged) after assistance
for each dwelling unit in each structure assisted.
Affordable rents must be maintained for a period of five years after CDBG assistance.
D. Job Creation or Retention Activities
These are economic development activities which are designed to create or retain permanent
jobs, where at least 51% of the jobs, computed on a full-time equivalent basis, can be
documented to employ low and very low income persons for the geographic area where it is
located. There are very specific elements of this national objective. Please contact the
Community Development staff to discuss your project prior to submitting an application.
CDBG FUNDING - SPECIFIC REQUIREMENTS
1. Reversion of Assets / Change-of-Use of CDBG Assisted Property All recipients
must agree to restrict the use of the property, which was acquired and/or improved
using CDBG funds, to the intended purpose for which the funds were awarded. The
restriction will be based on the dollars invested and follow the guidelines in the chart
Appendix C
below. This is to ensure compliance with HUD requirements and to ensure continued
public benefit.
Activity Dollar Threshold* Minimum Years
Restricted
Rehabilitation or Acquisition of
existing facilities or housing
(including homeownership
assistance)
Less than $15,000
$15,000 - $40,000
Greater than $40,000
5 Years
10 Years
15 Years
New Construction or
Acquisition of land for new
construction Any $ amount 20 Years
* Dollar threshold is per facility, or if housing, per unit for single family housing
Reversion of assets provisions require agency to transfer to the City any CDBG funds
on hand at the time of expiration of the subrecipient agreement, any accounts
receivable attributable to the use of CDBG funds, and any nonexpendable personal
property that was purchased with CDBG funds
2. Restriction on Assessments
CDBG funds may not be used for public improvement projects where a portion of the
projects is to be financed by assessments to area property owners, unless the project is
structured such that CDBG funds are used to pay the assessments of all low and very
low income property owners. The analysis of incomes of affected persons must be done
ahead of time and submitted as part of the application for CDBG funds.
3. Guidelines for Economic Development Projects (24 CFR 570.209) City will
utilize the guidelines provided at 24 CFR 570.209 relative to project costs and
financial requirements and standards for evaluating public benefit.
4. Supplanting (24 CFR 570.207)
Federal regulations prohibit using CDBG funds to supplant (replace or substitute for)
local funds for public services or ongoing responsibilities of general local government.
The intent of this federal regulation is to prevent local government from using the
availability of federal CDBG dollars as an excuse to reduce local funding commitments.
Appendix D
Appendix D
Conflict of Interest Policy
Appendix D
Conflict of Interest Policy
City of Bremerton Project Review Committee
From time to time, community volunteers who are appointed to the Project Review
Committee (PRC) have prior experience with one of the applicants or programs
requesting grant funding. The following guidelines are intended to clarify what should
happen in these cases to avoid real or perceived conflict of interest.
1) Conflict of Interest:
a. No member of the PRC shall be beneficially interested, directly or indirectly, in
any grant applications which may be made by, through, or under the
recommendation of the PRC, in whole or in part, or which may be made for the
benefit of his or her office, or accept directly or indirectly, any compensation,
gratuity or reward in connection with such contract from any other person
beneficially interested therein (from RCW 42.23.030)
b. No member of the PRC shall engage in any activity, including participation in
the selection, award, or administration of a grant award or contract if a conflict of
interest, real or apparent, exists.
2) Remote Interest
a. A PRC member is not interested in a contract, within the meaning of 1.a.
above, if the member only has a “remote interest” in the contract and the extent
of the interest is disclosed to the PRC and Staff at the beginning of the review
process and is noted in the official minutes prior to the recommendation of the
contract. (from RCW 42.23.040).
i. As used in this section “remote interest” means:
1. That of a non-salaried officer of a non-profit corporation;
2. That of an employee or agent of a contracting party where the
compensation of such employee or agent consists entirely of fixed wages or
salary;
3. That of a landlord or tenant of a contracting party;
4. That of a holder of less than one percent of the shares of a corporation
or cooperative which is a contracting party.
Appendix D
ii. Even if the PRC member’s interest is only remote, the member cannot
influence or attempt to influence any other PRC member in the award of a
contract they are remotely interested in. For purposes of this provision, influence
or attempt to influence includes any of the following:
1. Scoring the grant application;
2. Discussing the grant application with other PRC members;
3. Joining the audience, acting on behalf of the applicant or interacting in
any manner with members of the PRC.
4. PRC members should physically leave the room when the remaining
PRC members discuss the matter. This removes any potential claim that
the PRC member has attempted to exert undue influence over the other
PRC members.
3. Potential Bias by Prior Association
A. A PRC Member may have a “potential bias by prior association” if they
have had an interest in the past, but do not meet these definitions during
the time they are serving on the PRC, or who have personal prior
experience with an applicant including serving as a board member in the
past, being employed in the past, or being a current or past volunteer. In
the event of a potential bias by prior association:
i. The PRC member should disclose to the PRC and staff the nature of
their prior association at the beginning of the application review process.
4. Conflicts Disclosed
The staff should advise PRC members before the process begins that
members need to disclose, in advance, any remote interest, potential bias
by prior association that they have, or relatives serving as staff to any
applicants. It is recommended that the disclosures be done in writing.
5. Voting and Recommendations
a.The PRC member should recuse themselves from voting on any
recommendation that would include applications in which they have a
remote interest in or with whom they have a potential bias by prior
association.
b. If the final recommendations of the PRC are consolidated into a single
motion, then the PRC member may participate in the vote so long as their
Appendix D
participation in the discussion does not influence or attempt to influence
the outcome with respect to the applicant in which they have a remote
interest in or with whom they have a potential bias by prior association.
c. Occasionally members of the City Council will sit on the Board of
Directors of organizations which are proposed to receive funding. In this
instance, the Council member with the conflict of interest will state their
conflict, leave the Dias, and return when voting has been completed.
Because the votes are passed as one resolution, the Council member with
the conflict will not be allowed to vote on the resolution as a whole.
6. Alternate PRC
If there are two or more PRCs in a funding cycle or process, and a
member has a conflict of interest, remote interest, or potential bias by prior
association with an application that one of the PRCs is reviewing, that
member may serve on a different PRC without reservation or restriction.
Appendix F
Appendix F
Glossary
Appendix F
GLOSSARY
Administrative Expenses. Those expenses directly associated with the recipient’s
general administration of the CDBG or HOME programs, such as salaries, supplies,
equipment, accounting, phones, audits, benefits, travel and indirect costs.
Affordability. Affordability is achieved when a household’s rent or mortgage payment,
plus utilities, does not exceed 30% of the monthly income for the targeted income group
as adjusted for household size.
Annual Action Plan: This document allocates one year’s funding to specific projects
and activities for the CDBG and HOME programs. It is submitted annually to HUD, 45
days prior to the start of the City’s and County’s fiscal year or no later than November
15 and is developed in accordance with federal regulations (24 CFR Part 91).
Architectural Barriers. Restrict mobility and accessibility of elderly or individuals with
disabilities.
Benefit Criteria. A CDBG activity must either principally benefit low or very low income
persons, reduce or prevent slums and blight or meet a recent urgent need. These three
objectives are the Benefit Criteria.
Cash Flow. Gross income minus vacancy rate, operating expenses, reserves, debt
service and taxes.
Grant Recommendation Committee (GRC). A group of eight citizens meeting specific
qualifications, who develop funding recommendations for City of Bremerton HOME
funds.
Citizen Participation Plan: This plan is prepared to facilitate and encourage public
participation and involvement in the Consolidated Plan process and the City’s CDBG
and HOME program, especially by low- and moderate-income persons. The plan
identifies the public participation requirements as identified by federal regulations (24
CFR Part 91).
Committed Funds. Funds committed to a project by a project funding source. The
award amount, terms and uses of the committed funds are documented in a letter to the
applicant. A copy of this award letter is included with the application for CDBG/HOME
funds.
Conditional Funds. Funds committed, with conditions, to a project by a project funding
source. The conditions of the commitment, amount, terms, and uses are documented in
a letter to the applicant. A copy of the letter is included with the application for
CDBG/HOME funds.
Appendix F
Consolidated Annual Performance Evaluation Report (CAPER): This document
reports on the progress in carrying out the Consolidated Plan and Annual Action Plan.
The report is prepared annually by both the City and County in accordance with federal
regulations (24 CFR Part 91). It is due to HUD no later than 90 days after the end of the
program year or March 31.
Consolidated Plan: This document serves as the City’s and County’s application for
CDBG and HOME funds. It sets forth the priorities and strategies to address the needs
of primarily low- and moderate-income persons and areas in the county. It typically
covers a five-year time period. It is submitted to HUD 45 days prior to the start of the
program year or no later than November 15 and is developed in accordance with federal
regulations (24 CFR Part 91).
Consultant Fees. Fees paid to a third party developer consultant for costs associated
with implementation of a project.
Entitlement Community. A local jurisdiction that receives an allocation of Community
Development Block Grant funds directly from HUD. All participating jurisdictions are
entitlement communities; however, not all entitlement communities are participating
jurisdictions.
Household: all persons occupying a housing unit. The occupants may be a family, as
defined in 24 CFR 5.403; two or more families living together; or any other group of
related or unrelated persons who share living arrangements, regardless of actual or
perceived, sexual orientation, gender identity, or marital status.
Housing. Housing includes permanent housing units for sale or rent including;
manufactured housing, permanent housing for disabled homeless persons, transitional
housing, single-room occupancy housing, and group homes. Housing does not include
emergency shelters or facilities such as nursing homes, convalescent homes, hospitals,
residential treatment facilities, correctional facilities, halfway houses, housing for
students or dormitories.
Interlocal Agreement. Agreements made to ensure the cooperation of units of local
government which form consortiums for the purpose of obtaining funding.
Low- and Moderate-Income Households (LMI): These are households earning less
than 80% of the area median income (AMI). They are broken down into the following
income designations:
Extremely Low-Income: households with incomes less than 30% of the area
median family income adjusted for household size.
Low-Income: households with incomes between 31% and 50% of the area
median income, adjusted for household size.
Moderate-Income: households with incomes between 51% and 80% of the area
median income, adjusted for household size.
Appendix F
Low- and Moderate-Income Area Neighborhood (LMA): In general, this is defined as
census tracts or block groups where a minimum of 51% of the residents have low or
moderate incomes (i.e. not exceeding 80% of the area median income).
Median Family Income: HUD releases income limits annually for its programs. Income
limits are calculated using American Community Survey and Census data. Data for
Kitsap County is based on the Bremerton-Silverdale Metropolitan Statistical Area
(MSA). Incomes are indexed by household size.
Neighborhood Revitalization Strategy Area: A specific neighborhood targeted by the
City and approved by HUD. Communities with approved NRSA’s receive enhanced
flexibility in undertaking economic development, housing, and public service activities
with their CDBG funds. The City currently does not have an approved NRSA at this
time.
Operating Support. Financial assistance used to supplement the day-to-day
operations of a project.
Participating Jurisdiction. This term refers to cities, counties and consortia which
receive an allocation of federal HOME funds directly from HUD.
Persons with Disabilities. This term means a household composed of one or more
persons, at least one of whom is an adult, who has a disability. A person is considered
to have a disability if the person has a physical, mental, emotional or developmental
impairment that is expected to be of long-continued and indefinite duration and
substantially impedes his or her ability to live independently.
Program Year: The program year for the City CDBG and HOME programs is January 1
through December 31, which is the same as the City’s fiscal year.
Project Delivery Costs: Costs directly related to managing the project to the point of
completion normally paid to a third party.
Project Review Committee. This committee, made up of City of Bremerton staff, a
member of the City of Bremerton City Council, Planning Commissioner and two citizen
volunteers, evaluate, rank, and make funding recommendations to the Bremerton City
Council for use of CDBG funds.
Project Soundness. The feasibility, sensibility, and effectiveness of the project to
meet a defined community need and the organizational strength and capacity to bring
the project to completion.
Proposed Funds. Funds which have been or will be requested from a potential project
funding source.
Relocation Expenses. Those costs paid to households or businesses when temporary
or permanent relocation becomes necessary.
Appendix F
Single family housing: one to four-family residence, condominium unit, cooperative
unit, combination of manufactured housing and lot, or manufactured housing lot.
Single room occupancy (SRO) housing: housing (consisting of single- room dwelling
units) that is the primary residence of its occupant or occupants. The unit must contain
either food preparation or sanitary facilities (and may contain both).
Special Needs Housing. Housing for special needs populations who require special
housing-related services. This is also referred to as supportive housing.
Special Needs Population. This population of people includes elderly and frail elderly;
persons with mental, physical or developmental disabilities; persons with HIV/AIDS;
persons with alcohol or drug addiction; victims of domestic violence; persons
discharged from institutions (prison, jail, mental hospital, foster care).
Transitional housing: housing that is designed to provide housing and appropriate
supportive services to person, including (but not limited to) deinstitutionalized individuals
with disabilities, homeless individuals with disabilities, and homeless families with
children. It has as its purpose facilitating the movement of individuals and families to
independent living within a time period that is set.
Uniform Physical Condition Standards (UPCS): Uniform national standards
established by HUD pursuant to 24 CFR 5.703 for housing that is decent, safe, sanitary,
and in good repair. Standards are established for inspectable items for each of the
following areas: site, building exterior, building systems, dwelling units, and common
areas.
AGENDA BILL
CITY OF BREMERTON
CITY COUNCIL
SUBJECT: Ordinance No. amending
Ordinance No. 5408 relating to the City of
Bremerton Fiscal Year 2021 Budget
Study Session Date: June 9, 2021
COUNCIL MEETING Date: June 16, 2021
Department: Financial Services
Presenter: Karen Wikle
Phone: (360) 473-5296
SUMMARY: Each year the City assesses its current fiscal year budget for any needed adjustments.
Adjustments are recommended for the following reasons: to adjust the estimated beginning fund
balances to actual, to account for unanticipated/unexpected conditions, to incorporate 2020 carryover
items, and to adjust for previously approved Council motions/resolutions etc. The attached
ordinance and supporting documents outlines the various reasons for the current proposed budget
amendment.
ATTACHMENTS:
Ordinance No. to Amend Ordinance No. 5408 adopting the 2021 Budget
Exhibit A
Exhibit B
2021 Mid-Year Budget Adjustment Memo
Detail fund listing identifying proposed line item and budget control category adjustments
FISCAL IMPACTS (Include Budgeted Amount): The net adjustment for all City Funds for the Fiscal
Year 2021 is $17,287,292 for a total expenditure appropriation of $209,449,428.
STUDY SESSION AGENDA: ☒Limited Presentation ☐Full Presentation
STUDY SESSION ACTION: ☐ Consent Agenda ☐General Business ☐Public Hearing
RECOMMENDED MOTION: Move to pass Ordinance No. amending Ordinance No. 5408
relating to the City of Bremerton Fiscal Year 2021 Budget; and further authorize identified staffing
adjustments.
COUNCIL ACTION: Approve Deny Table Continue No Action
Form Updated 01/02/2018
B6
1 2021 Mid-Year Budget Amendment
ORDINANCE NO. ___
AN ORDINANCE of the City Council of the City of
Bremerton, Washington, amending Ordinance No. 5408 relating to
the City of Bremerton Fiscal Year 2021 Budget.
WHEREAS, the City Council passed the Fiscal Year 2021 City Budget Ordinance
No. 5408 on November 18, 2020; and
WHEREAS, the City Council has previously amended the budget by various
motions and resolutions subsequent to November 18, 2020 which require a formal amendment
by ordinance; and
WHEREAS, all of the funds of the City of Bremerton require amendment to
adjust beginning fund balances; and
WHEREAS, several City Departments and Funds are experiencing or anticipate
additional expenses due to factors such as costs related to provision of contracted services and
changed allocations of staff time; and
WHEREAS, several City Departments and Funds require adjustment to revenues
to reflect activity in 2021 or timing changes from that which was anticipated in the 2021 budget;
and
WHEREAS, certain reclassifications of revenues and expenditures are required to
properly reflect budget categories in a manner consistent with actuals in accordance with BMC
3.02.010; and
WHEREAS, each of these actions has an impact on the City of Bremerton’s
Fiscal Year 2021 Annual Budget resulting in the need to amend this Budget document;
NOW THEREFORE,
THE CITY COUNCIL OF THE CITY OF BREMERTON, WASHINGTON,
DOES HEREBY ORDAIN AS FOLLOWS:
SECTION 1. Ordinance No. 5408 establishing the City of Bremerton’s 2021
Budget is hereby amended as follows;
1) regular revenues and unencumbered fund balances of $209,449,428, the total for
each fund as set forth in Exhibit A, attached hereto and incorporated herein by this reference, and
2) in accordance with BMC 3.02.010, expenditures and ending fund balances of
$209,449,428 as set forth in Exhibit A, and authoring staffing adjustments as set forth in Exhibit
B, attached hereto and incorporated herein by this reference.
2 2021 Mid-Year Budget Amendment
SECTION 2. That the totals for the funds noted in Exhibit A are hereby
appropriated for the fiscal year 2021.
SECTION 3. Severability. If any one or more sections, subsections, or
sentences of this Ordinance are held to be unconstitutional or invalid, such decision shall not
affect the validity of the remaining portion of this Ordinance and the same shall remain in full
force and effect.
SECTION 4. Effective Date. This ordinance shall take effect and be in force ten
(10) days from and after its passage, approval and publication as provided by law.
PASSED by the City Council the___________ day of ____________________, 2021
_________________________________
KEVIN GORMAN, Council President
Approved this ________ day of ________________________, 2021
________________________________
GREG WHEELER, Mayor
ATTEST: APPROVED AS TO FORM:
__________________________________ ________________________________
ANGELA HOOVER, City Clerk ROGER A. LUBOVICH, City Attorney
PUBLISHED the________ day of ______________________, 2021
EFFECTIVE the_________day of ______________________, 2021
ORDINANCE NO. ______
BEG LIC.INTER-CHARGES FINES 2021
FUND AND GOV'T FOR AND OTHER TOTAL
FUND BAL.TAXES PERMITS REVENUE SERVICE FORFEITS REVENUE BUDGET
General Fund
General Government:
City Council 0 0 0 155,561 0 0 155,561
Executive 0 0 0 132,319 0 0 132,319
Financial Services 0 0 0 806,344 0 0 806,344
Legal 0 0 0 616,530 0 0 616,530
Human Resources 0 0 0 287,803 0 0 287,803
Community Development 2,935,000 1,285,750 9,400 694,000 50,000 0 4,974,150
Municipal Court 0 0 20,500 210,800 209,400 10,400 451,100
City Auditor 0 0 0 36,291 0 0 36,291
Law Enforcement 0 7,000 192,826 143,600 1,500 500 345,426
Fire/Emergency Medical 2,086,406 1,200 841,104 650,200 3,000 0 3,581,910
Police & Fire Pension 0 0 76,236 0 0 0 76,236
General Facilities 0 0 0 180,019 0 596,600 776,619
Parks 0 0 0 125,500 0 52,000 177,500
Engineering 0 64,000 0 2,183,027 0 0 2,247,027
Non-Departmental 28,511,788 30,600 839,130 104,371 732,000 198,000 30,415,889
Beginning Fund Balance 15,076,727 67,900 156,825 15,301,452
Total General Fund 15,076,727 33,533,194 1,388,550 2,047,096 6,326,365 995,900 1,014,325 60,382,157
Special Revenue Funds:
Street 892,182 800,000 0 837,923 115,000 0 756,500 3,401,605
Contingency Reserve 1,518,452 0 0 0 0 0 144,800 1,663,252
Lodging Tax 309,374 470,000 0 0 0 0 4,000 783,374
Parking System 883,974 0 0 0 0 355,500 1,294,831 2,534,305
Comm. Dev. Block Grant 137,658 0 0 841,000 25,500 0 80,500 1,084,658
Abatement Revolving Fund 339,710 0 0 0 0 25,000 500 365,210
Police Special Projects 415,736 0 0 0 0 5,000 3,500 424,236
Public Access Television 723,148 0 274,000 0 125,607 0 47,000 1,169,755
Gift & Donations Fund 89,536 0 0 0 0 0 2,100 91,636
Trial Improvement 98,739 0 0 18,000 0 0 600 117,339
One Percent for Arts 12,820 0 0 0 0 0 1,700 14,520
Conference Center Oper 140,440 0 0 0 1,023,438 0 356,000 1,519,878
Total Spec. Rev. Funds 5,561,771 1,270,000 274,000 1,696,923 1,289,545 385,500 2,692,031 13,169,770
Debt Service Fund:
2010 UTGO (40,176)900,000 0 0 0 0 1,000 860,824
Government Center LTGO 86,007 0 0 0 0 0 331,000 417,007
2015 Public Safety Bond 85,830 550,000 0 0 0 0 750 636,580
2019 Refunding LTGO 225,736 330,000 0 3,000 0 0 147,600 706,336
Total Debt Service Fund 357,397 1,780,000 0 3,000 0 0 480,350 2,620,747
Capital Improvement Funds:
General Govt Capital Improv.3,408,575 1,650,000 0 0 0 0 40,000 5,098,575
Park Facilities Construction 301,520 0 0 1,014,400 0 0 258,150 1,574,070
Residential Street & Sidewalk Fund 2,568,216 1,091,301 125,000 10,000 0 0 115,000 3,909,517
Transportation Projects Fund 1,425,956 491,301 0 8,671,972 0 0 1,225,544 11,814,773
Fire Public Safety Capital 915,241 0 0 0 0 0 0 915,241
Affordable Housing Capital Fund 3,098 0 0 0 0 0 100,000 103,098
Total Capital Improv. Funds 8,622,606 3,232,602 125,000 9,696,372 0 0 1,738,694 23,415,274
Total General Gov't Funds 29,618,501 39,815,796 1,787,550 13,443,391 7,615,910 1,381,400 5,925,400 99,587,948
2021 REVENUE - ALL FUNDS
BEG LIC.INTER-CHARGES FINES 2021
FUND AND GOV'T FOR AND OTHER TOTAL
FUND BAL.TAXES PERMITS REVENUE SERVICE FORFEITS REVENUE BUDGET
2021 REVENUE - ALL FUNDS
Enterprise Funds:
Water Utility 4,454,909 0 0 0 14,945,857 20,000 533,000 19,953,766
Water Capital 11,345,123 0 0 0 0 0 3,605,600 14,950,723
Wastewater Utility 3,808,456 102,000 0 0 16,394,038 18,000 23,000 20,345,494
Wastewater Capital 3,374,292 0 0 0 0 0 9,996,019 13,370,311
Stormwater Utility 1,238,630 0 0 0 4,905,506 7,000 82,500 6,233,636
Stormwater Capital 5,671,750 0 0 0 0 0 4,062,929 9,734,679
Utility Debt Reserve 1,719,347 0 0 0 0 0 22,000 1,741,347
Gold Mountain Golf Complex 940,524 0 0 0 4,734,564 0 24,271 5,699,359
Total Enterprise Funds 32,553,032 102,000 0 0 40,979,965 45,000 18,349,319 92,029,316
Internal Service Funds:
Risk Management 2,732,927 0 0 0 0 0 2,207,829 4,940,756
Employment Security 187,368 0 0 0 0 0 4,000 191,368
Accumulated Leave Liability 449,606 0 0 0 0 0 582,500 1,032,106
ER&R Operations & Maint.111,511 0 0 0 1,788,869 0 4,350 1,904,730
ER&R Equipment Reserve 4,641,715 0 0 0 0 0 2,171,933 6,813,648
Information Services 1,183,557 0 0 0 1,766,000 0 0 2,949,557
Total Internal Service Funds 9,306,683 0 0 0 3,554,869 0 4,970,612 17,832,164
Total Business Type Funds 41,859,715 102,000 0 0 44,534,834 45,000 23,319,931 109,861,480
Total All Funds 71,478,216 39,917,796 1,787,550 13,443,391 52,150,744 1,426,400 29,245,331 209,449,428
Beginning Fund
Balance
$71,478,216
34%
Taxes
$39,917,796
19%
Licenses & Permits
$1,787,550
1%
Intergovernmental
$13,443,391
6%
Charges for Service
$52,150,744
25%
Fines & Forfeits
$1,426,400
1%Other Revenue
$29,245,331
14%
Revenue Sources -All Funds
1/0/1900
2021
SUPPLIES &DEBT CAPITAL ENDING TOTAL
FUND PERSONNEL SERVICES SERVICE OUTLAY TRANSFERS FUND BAL.BUDGET
General Fund
General Government:
City Council 345,200 63,365 0 0 0 408,565
Executive 273,500 74,022 0 0 0 347,522
Financial Services 1,259,300 358,603 0 0 0 1,617,903
Legal Department 1,577,250 245,915 0 0 0 1,823,165
Human Resources 502,500 253,385 0 0 0 755,885
Community Development 1,902,700 941,680 0 0 75,000 2,919,380
Municipal Court 983,000 544,581 0 0 0 1,527,581
City Auditor 88,400 6,915 0 0 0 95,315
Law Enforcement 10,896,925 1,951,857 0 0 0 12,848,782
Fire/Emergency Medical 10,718,900 1,802,511 0 0 0 12,521,411
Police & Fire Pension 1,479,400 407,000 0 0 0 1,886,400
General Facilities 537,000 887,975 0 540,000 0 1,964,975
General Parks 2,227,800 847,334 0 0 132,700 3,207,834
Engineering 2,739,900 351,752 0 0 0 3,091,652
Non-Departmental 199,200 3,767,634 0 0 1,150,800 5,117,634
Ending Fund Balance 10,248,153 10,248,153
Total General Fund 35,730,975 12,504,529 0 540,000 1,358,500 10,248,153 60,382,157
Special Revenue Funds:
Street 1,077,951 1,825,523 0 0 0 498,131 3,401,605
Contingency Reserve 0 0 0 0 1,663,252 1,663,252
Lodging Tax 0 350,000 0 0 250,000 183,374 783,374
Parking System 0 1,130,771 542,708 0 70,000 790,826 2,534,305
Comm. Dev. Block Grant 153,200 718,245 0 0 75,550 137,663 1,084,658
Abatement Revolving Fund 0 241,100 0 0 0 124,110 365,210
Police Special Projects 0 203,868 0 0 0 220,368 424,236
Public Access Television 410,200 53,875 0 30,000 0 675,680 1,169,755
Gift & Donations Fund 0 17,000 0 0 0 74,636 91,636
Trial Improvement 0 27,500 0 0 0 89,839 117,339
One Percent for Arts 0 9,000 0 0 0 5,520 14,520
Conference Center Oper 0 1,227,104 32,168 0 0 260,606 1,519,878
Total Spec. Rev. Funds 1,641,351 5,803,986 574,876 30,000 395,550 4,724,007 13,169,770
Debt Service Fund:
2010 UTGO 0 0 856,088 0 0 4,736 860,824
Government Center LTGO 0 0 331,113 0 0 85,894 417,007
2015 Public Safety Bond 0 0 500,550 0 0 136,030 636,580
2019 Refunding LTGO 0 0 530,844 0 0 175,492 706,336
Total Debt Service Fund 0 0 2,218,595 0 0 402,152 2,620,747
Capital Improvement Funds:
General Govt Capital Improv.0 0 0 0 2,142,544 2,956,031 5,098,575
Park Facilities Construction 0 0 0 1,304,150 0 269,920 1,574,070
Residential Street & Sidewalk Fund 238,200 824,228 0 376,000 0 2,471,089 3,909,517
Transportation Projects Fund 0 1,160,000 0 9,683,548 0 971,225 11,814,773
Fire Public Safety Capital 0 442,163 0 472,078 1,000 (0)915,241
Affordable Housing Capital Fund 0 100,000 0 0 0 3,098 103,098
Total Capital Improv. Funds 238,200 2,526,391 0 11,835,776 2,143,544 6,671,363 23,415,274
Total General Gov't Funds 37,610,526 20,834,906 2,793,471 12,405,776 3,897,594 22,045,675 99,587,948
2021 EXPENDITURES - ALL FUNDS
1/0/1900
2021
SUPPLIES &DEBT CAPITAL ENDING TOTAL
FUND PERSONNEL SERVICES SERVICE OUTLAY TRANSFERS FUND BAL.BUDGET
2021 EXPENDITURES - ALL FUNDS
Enterprise Funds:
Water Utility 5,008,150 7,580,526 923,346 0 2,585,500 3,856,244 19,953,766
Water Capital 0 135,000 0 6,707,085 0 8,108,638 14,950,723
Wastewater Utility 3,526,350 8,929,961 2,094,871 0 2,775,500 3,018,812 20,345,494
Wastewater Capital 0 450,000 0 10,591,865 0 2,328,446 13,370,311
Stormwater Utility 1,572,400 2,561,624 223,655 0 780,500 1,095,457 6,233,636
Stormwater Capital 0 200,000 0 5,217,195 0 4,317,484 9,734,679
Utility Debt Reserve 0 0 0 0 0 1,741,347 1,741,347
Gold Mountain Golf Complex 0 4,219,240 432,195 0 0 1,047,924 5,699,359
Total Enterprise Funds 10,106,900 24,076,351 3,674,067 22,516,145 6,141,500 25,514,353 92,029,316
Internal Service Funds:
Risk Management 565,000 2,082,829 0 0 0 2,292,927 4,940,756
Employment Security 80,000 0 0 0 0 111,368 191,368
Accumulated Leave Liability 588,700 0 0 0 0 443,406 1,032,106
ER&R Operations & Maint 578,900 1,211,469 0 0 0 114,361 1,904,730
ER&R Equipment Reserves 0 688,613 0 1,163,095 0 4,961,940 6,813,648
Information Services 918,600 871,596 0 0 0 1,159,361 2,949,557
Total Internal Service Funds 2,731,200 4,854,507 0 1,163,095 0 9,083,362 17,832,164
Total Business Type Funds 12,838,100 28,930,858 3,674,067 23,679,240 6,141,500 34,597,715 109,861,480
Total All Funds 50,448,626 49,765,764 6,467,538 36,085,016 10,039,094 56,643,390 209,449,428
Personnel
$50,448,626
24%Supplies & Services
$49,765,764
24%
Debt Service
$6,467,538
3%
Capital Outlay
$36,085,016
17%
Transfers
$10,039,094
5%
Ending Fund
Balance
$56,643,390
27%
Expenditures -All Funds
Department Position Action
Authorized Staffing Per 2021 Budget 376.53
Regular FTEs
Public Works - Engineering - Development Engineer- Civil Engineer II 1.00
Public Works - Engineering - Development Inspector, Engineering Tech IV 1.00
Public Works - Engineering - Transportation Project Manager 1.00
Public Works - Utility/Maint- Internal Services Manager 1.00
Public Works - Utility Maint/Water - Temp Contract for Bremerton Government Center Owners Assoc.1.00
Community Development - Building Inspector/Plans Examiner II 1.00
Legal - Civil - Legal Assistant I 1.00
Legal - Prosecution - Legal Assistant I 1.00
Sub-Total 8.00
Part-Time & Seasonal FTE by Department
Legal - Regular Part-Time to Regular Full-Time -0.37
Public Works - Utility Maint/Water - Temp Contract for Bremerton Government Center Owners Assoc.0.45
Sub-Total 0.08
Amended 2021 Authorized Staffing 384.61
FTE Change
City of Bremerton
Authorized Staffing
Exhibit B
Amended by Ordinance No. ___
2021 Budget Amended
as Adopted by 2021
Fund No.Ord No. 5408 Net Adjustments Budget
001 General Fund
City Council 408,565$ -$ 408,565$
Executive 347,522 - 347,522
Financial Services 1,617,903 - 1,617,903
Legal 1,641,515 111,000 1,752,515
Human Resources 755,885 - 755,885
Community Development 2,837,380 82,000 2,919,380
Municipal Court 1,527,581 - 1,527,581
City Auditor 95,315 - 95,315
Law Enforcement 12,775,572 73,210 12,848,782
Fire/Emergency Services 12,086,411 435,000 12,521,411
Police/Fire Pension 1,886,400 - 1,886,400
General Facilities 1,938,475 26,500 1,964,975
Parks & Recreation 3,207,834 - 3,207,834
Engineering 3,051,152 111,150 3,162,302
Non-Department 5,117,634 - 5,117,634
Ending Fund Balance 8,414,203 1,833,950 10,248,153
Total General Fund 57,709,347$ 2,672,810$ 60,382,157$
102 Street 3,300,980 100,625 3,401,605
103 Contingency Reserve 1,658,941 4,311 1,663,252
104 Lodging Tax 705,147 78,227 783,374
105 Parking System 2,583,296 (48,991) 2,534,305
106 Community Dev. Block Grant 1,318,050 (233,392) 1,084,658
108 Abatement Revolving 319,319 45,891 365,210
110 Police Special Projects 366,090 58,146 424,236
113 Public Access Television 1,140,959 28,796 1,169,755
114 Gift & Donation Fund 86,733 4,903 91,636
116 Trial Improvement 102,406 14,933 117,339
117 One Percent For Arts 21,257 (6,737) 14,520
120 Conference Center Operating 1,559,736 (39,858) 1,519,878
203 2010 LTGO - - -
204 2010 UTGO/LTGO (B)1,054,531 (193,707) 860,824
205 Government Center LTGO 416,419 588 417,007
206 2015 Public Safety Bond 638,731 (2,151) 636,580
207 2019 Refunding LTGO 706,266 70 706,336
308 General Gov't Capital Improvement 4,356,968 741,607 5,098,575
310 Park Facilities Construction 1,405,261 168,809 1,574,070
314 Residential Street Capital 3,664,500 245,017 3,909,517
315 Transportation Capital Projects 11,223,064 591,709 11,814,773
316 Fire Public Safety 792,163 123,078 915,241
318 Affordable Housing Capital 102,343 755 103,098
401 Water Utility 17,578,625 2,375,141 19,953,766
404 Water Capital 12,295,308 2,655,415 14,950,723
407 Golf Mountain Golf 5,514,090 185,269 5,699,359
451 Wastewater Utility 18,684,085 1,661,409 20,345,494
454 Wastewater Capital 10,224,138 3,146,173 13,370,311
481 Stormwater Utility 5,602,651 630,985 6,233,636
484 Stormwater Capital 8,938,185 796,494 9,734,679
499 Utility Debt Reserve 1,738,336 3,011 1,741,347
503 Risk Management 5,081,604 (140,848) 4,940,756
506 Employment Security 161,977 29,391 191,368
507 Accumulated Leave Liability 853,439 178,667 1,032,106
509 ER&R - Operations & Maintenance 1,799,283 105,447 1,904,730
510 ER&R - Reserves 5,855,177 958,471 6,813,648
511 Information Services 2,602,731 346,826 2,949,557
Total All funds 192,162,136$ 17,287,292$ 209,449,428$
CITY OF BREMERTON
2021 ANTICIPATED REVENUES, EXPENDITURES AND CHANGES IN FUND BALANCE
GENERAL FUND
For the Year Ended December 31, 2021
Proposed Adj Required
Adopted Amended From The
Budget Budget Adopted Budget
2021 2021 2021
REVENUES
Taxes
Property $10,241,852 $10,241,852 $-
Retail Sales 9,300,000 9,300,000 -
Other 13,991,342 13,991,342 -
Licenses and Permits 1,388,550 1,388,550 -
Intergovernmental 1,979,196 2,047,096 67,900
Charges for Services 6,326,365 6,326,365 -
Fines and Forfeitures 995,900 995,900 -
Miscellaneous 316,500 316,500 -
Transfers In & Other Financing 541,000 697,825 156,825
Total Revenues 45,080,705 45,305,430 224,725
EXPENDITURES
Personnel Expenses 35,434,800 35,649,975 215,175
Supplies, Services, and Taxes 11,961,844 12,585,529 623,685
Capital Expenditures 540,000 540,000 -
Debt Service - - -
Transfers Out 1,358,500 1,358,500 -
Total Expenditures 49,295,144 50,134,004 838,860
CHANGES IN FUND BALANCE
Net change in fund balances (4,214,439) (4,828,574) (614,135)
Fund Balances-beginning 12,628,642 15,076,727 2,448,085
Fund Balances-ending $8,414,203 $10,248,153 $1,833,950
GENERAL FUND EXPENDITURES BY DEPARTMENT
City Council $408,565 $408,565 $-
Executive 347,522 347,522 -
Financial Services 1,617,903 1,617,903 -
Legal Department 1,641,515 1,752,515 111,000
Human Resources 755,885 755,885 -
Community Development 2,837,380 2,919,380 82,000
Municipal Court 1,527,581 1,527,581 -
City Auditor 95,315 95,315 -
Police Department 12,775,572 12,848,782 73,210
Fire Department 12,086,411 12,521,411 435,000
Police & Fire Pension 1,886,400 1,886,400 -
General Facilities 1,938,475 1,964,975 26,500
Parks & Recreation 3,207,834 3,207,834 -
Engineering 3,051,152 3,162,302 111,150
Non-Departmental 5,117,634 5,117,634 -
Total Expenditures $49,295,144 $50,134,004 $838,860
Per the City's Financial Goals and Policies, the target ending fund balance is 8.5% of annual expenditures excluding
capital. The target fund balance for the 2021 budget, as amended, is $4,215,490. The actual ending fund balance
after the proposed amendments is $10,248,153 which is higher than the target amount by $6,032,663. The 2021
budget as proposed, includes an ending fund balance which exceeds the target, and is increased from the previously
adopted budget by $1,833,950. The financial planning goal is to maintain an ending fund balance recommended by the
Government Finance Officers Association (GFOA) of 16.67%, or $8,267,320. The proposed budget with amendments,
exceeds this recommendation by $1,980,833.
FUND 001
CITY OF BREMERTON
2021 ANTICIPATED REVENUES, EXPENDITURES AND CHANGES IN FUND BALANCE
GENERAL FUND
For the Year Ended December 31, 2021
Budget Adjustments:
Revenue - Increase Intergovernmental in Police for Kitsap County (Mental Health Tax)67,900
Revenue - Increase Transfers In in Engineering for Development Engineer, Civil Engineer II 60,750
Revenue - Increase Transfers In in Engineering for Development Inspector, Engineering Tech IV 60,750
Revenue - Increase Transfers In in Engineering for Transportation Project Manager 35,325
Expenditure - Reallocate personnel in Police to professional services for Kitsap Mental Health contract -
Expenditure - Increase personnel in Police for Behavioral Health Navigator (33,425)
Expenditure - Increase personnel in Community Development for Building Inspector/Plans Examiner II (82,000)
Expenditure - Increase personnel in Engineering for Development Inspector and Engineer (40,500)
Expenditure - Increase personnel in Legal-Civil for Legal Assistant I (67,000)
Expenditure - Increase personnel in Legal-Prosecution for P/T to FTE Legal Assistant I (44,000)
Expenditure - Increase personnel in General Facililties for Internal Services Manager (26,500)
Expenditure - Increase personnel in Engineering for Transportation Project Manager (70,650)
Expenditure - Carry over Type 6 Wildland Fire Truck (160,000)
Expenditure - Carry over Medic Unit (275,000)
Expenditure - Carry over for Police Vehicles (39,785)
Net adjustment to ending fund balance required $(614,135)
Items Previously Approved by Council or Finance Committee
New Items Not Previously Approved by Council
FUND 001
CITY OF BREMERTON
2021 ANTICIPATED REVENUES, EXPENDITURES AND CHANGES IN FUND BALANCE
STREET FUND
For the Year Ended December 31, 2021
Proposed Adj Required
Adopted Amended From The
Budget Budget Adopted Budget
2021 2021 2021
REVENUES
Taxes
Property $- $- $-
Sales - - -
Other 800,000 800,000 -
Licenses and Permits - - -
Intergovernmental (fuel tax)837,923 837,923 -
Charges for Services 115,000 115,000 -
Fines and Forfeitures - - -
Miscellaneous 14,000 14,000 -
Transfers in & Other Revenue 742,500 742,500 -
Total Revenues 2,509,423 2,509,423 -
EXPENDITURES
Personnel Expenses 1,077,951 1,077,951 -
Supplies, Services, and Taxes 1,747,303 1,825,523 78,220
Capital Expenditures - - -
Debt Service - - -
Transfers Out - - -
Total Expenditures 2,825,254 2,903,474 78,220
CHANGES IN FUND BALANCE
Net change in fund balances (315,831) (394,051) (78,220)
Fund Balances-beginning 791,557 892,182 100,625
Fund Balances-ending $475,726 $498,131 $22,405
Budget Adjustments:
Expenditure - Carry over for prior year vehicles (78,220)
Net adjustment to ending fund balance required $(78,220)
New Items Not Previously Approved by Council
Items Previously Approved by Council
FUND 102
CITY OF BREMERTON
2021 ANTICIPATED REVENUES, EXPENDITURES AND CHANGES IN FUND BALANCE
CONTINGENCY RESERVE FUND
For the Year Ended December 31, 2021
Proposed Adj Required
Adopted Amended From The
Budget Budget Adopted Budget
2021 2021 2021
REVENUES
Taxes
Property $- $- $-
Sales - - -
Other - - -
Licenses and Permits - - -
Intergovernmental - - -
Charges for Services - - -
Fines and Forfeitures - - -
Miscellaneous 15,000 15,000 -
Transfers-in & Other Revenue 129,800 129,800 -
Total Revenues 144,800 144,800 -
EXPENDITURES
Personnel Expenses - - -
Supplies, Services, and Taxes - - -
Capital Expenditures - - -
Debt Service - - -
Transfers Out - - -
Total Expenditures - - -
CHANGES IN FUND BALANCE
Net change in fund balances 144,800 144,800 -
Fund Balances-beginning 1,514,141 1,518,452 4,311
Fund Balances-ending $1,658,941 $1,663,252 $4,311
Budget Adjustments:
Net adjustment to ending fund balance required $-
Items Previously Approved by Council
New Items Not Previously Approved by Council
FUND 103
CITY OF BREMERTON
2021 ANTICIPATED REVENUES, EXPENDITURES AND CHANGES IN FUND BALANCE
LODGING TAX FUND
For the Year Ended December 31, 2021
Proposed Adj Required
Adopted Amended From The
Budget Budget Adopted Budget
2021 2021 2021
REVENUES
Taxes
Property $- $- $-
Sales - - -
Other (hotel/motel tax)470,000 470,000 -
Licenses and Permits - - -
Intergovernmental - - -
Charges for Services - - -
Fines and Forfeitures - - -
Miscellaneous 4,000 4,000 -
Transfers in - - -
Total Revenues 474,000 474,000 -
EXPENDITURES
Personnel Expenses - - -
Supplies, Services, and Taxes 350,000 350,000 -
Capital Expenditures - - -
Debt Service - - -
Transfers Out 250,000 250,000 -
Total Expenditures 600,000 600,000 -
CHANGES IN FUND BALANCE
Net change in fund balances (126,000) (126,000) -
Fund Balances-beginning 231,147 309,374 78,227
Fund Balances-ending $105,147 $183,374 $78,227
Budget Adjustments:
Net adjustment to ending fund balance required $-
Items Previously Approved by Council
New Items Not Previously Approved by Council
FUND 104
CITY OF BREMERTON
2021 ANTICIPATED REVENUES, EXPENDITURES AND CHANGES IN FUND BALANCE
PARKING SYSTEM FUND
For the Year Ended December 31, 2021
Proposed Adj Required
Adopted Amended From The
Budget Budget Adopted Budget
2021 2021 2021
REVENUES
Taxes
Property $- $- $-
Sales - - -
Other - - -
Licenses and Permits - - -
Intergovernmental - - -
Charges for Services - - -
Fines and Forfeitures 355,500 355,500 -
Miscellaneous 1,294,831 1,294,831 -
Transfers in & Other Revenue - - -
Total Revenues 1,650,331 1,650,331 -
EXPENDITURES
Personnel Expenses - - -
Supplies, Services, and Taxes 1,130,771 1,130,771 -
Capital Expenditures - - -
Debt Service 542,708 542,708 -
Transfers Out 70,000 70,000 -
Total Expenditures 1,743,479 1,743,479 -
CHANGES IN FUND BALANCE
Net change in fund balances (93,148) (93,148) -
Fund Balances-beginning 932,965 883,974 (48,991)
Fund Balances-ending $839,817 $790,826 $(48,991)
Budget Adjustments:
Revenue-technical correction in Miscellaneous Commuter Parking Permits to L.T. Facility Lease -
Net adjustment to ending fund balance required $-
New Items Not Previously Approved by Council
New Items Previously Approved by Council
FUND 105
CITY OF BREMERTON
2021 ANTICIPATED REVENUES, EXPENDITURES AND CHANGES IN FUND BALANCE
COMMUNITY DEVELOPMENT BLOCK GRANT
For the Year Ended December 31, 2021
Proposed Adj Required
Adopted Amended From The
Budget Budget Adopted Budget
2021 2021 2021
REVENUES
Taxes
Property $- $- $-
Sales - - -
Other - - -
Licenses and Permits - - -
Intergovernmental 841,000 841,000 -
Charges for Services 25,500 25,500 -
Fines and Forfeitures - - -
Miscellaneous 5,500 5,500 -
Transfers in 75,000 75,000 -
Total Revenues 947,000 947,000 -
EXPENDITURES
Personnel Expenses 153,200 153,200 -
Supplies, Services, and Taxes 718,245 718,245 -
Capital Expenditures - - -
Debt Service - - -
Transfers Out 75,550 75,550 -
Total Expenditures 946,995 946,995 -
CHANGES IN FUND BALANCE
Net change in fund balances 5 5 -
Fund Balances-beginning 371,050 137,658 (233,392)
Fund Balances-ending $371,055 $137,663 $(233,392)
Budget Adjustments:
Net adjustment required to the ending fund balance $-
Items Previously Approved by Council
Items Not Previously Approved by Council
FUND 106
CITY OF BREMERTON
2021 ANTICIPATED REVENUES, EXPENDITURES AND CHANGES IN FUND BALANCE
ABATEMENT REVOLVING FUND
For the Year Ended December 31, 2021
Proposed Adj Required
Adopted Amended From The
Budget Budget Adopted Budget
2021 2021 2021
REVENUES
Taxes
Property $- $- $-
Sales - - -
Other - - -
Licenses and Permits - - -
Intergovernmental - - -
Charges for Services - - -
Fines and Forfeitures 25,000 25,000 -
Miscellaneous 500 500 -
Transfers in - - -
Total Revenues 25,500 25,500 -
EXPENDITURES
Personnel Expenses - - -
Supplies, Services, and Taxes 241,100 241,100 -
Capital Expenditures - - -
Debt Service - - -
Transfers Out - - -
Total Expenditures 241,100 241,100 -
CHANGES IN FUND BALANCE
Net change in fund balances (215,600) (215,600) -
Fund Balances-beginning 293,819 339,710 45,891
Fund Balances-ending $78,219 $124,110 $45,891
Budget Adjustments:
Net adjustment to ending fund balance required $-
Items Previously Approved by Council
New Items Not Previously Approved by Council
FUND 108
CITY OF BREMERTON
2021 ANTICIPATED REVENUES, EXPENDITURES AND CHANGES IN FUND BALANCE
POLICE SPECIAL PROJECTS FUND
For the Year Ended December 31, 2021
Proposed Adj Required
Adopted Amended From The
Budget Budget Adopted Budget
2021 2021 2021
REVENUES
Taxes
Property $- $- $-
Sales - - -
Other - - -
Licenses and Permits - - -
Intergovernmental - - -
Charges for Services - - -
Fines and Forfeitures 5,000 5,000 -
Miscellaneous 3,500 3,500 -
Transfers in - - -
Total Revenues 8,500 8,500 -
EXPENDITURES
Personnel Expenses - - -
Supplies, Services, and Taxes 203,868 203,868 -
Capital Expenditures - - -
Debt Service - - -
Transfers Out - -
Total Expenditures 203,868 203,868 -
CHANGES IN FUND BALANCE
Net change in fund balances (195,368) (195,368) -
Fund Balances-beginning 357,590 415,736 58,146
Fund Balances-ending $162,222 $220,368 $58,146
Budget Adjustments:
Net adjustment to ending fund balance required $-
New Items Not Previously Approved by Council
Items Previously Approved by Council
FUND 110
CITY OF BREMERTON
2021 ANTICIPATED REVENUES, EXPENDITURES AND CHANGES IN FUND BALANCE
PUBLIC ACCESS TELEVISION OPERATIONS FUND
For the Year Ended December 31, 2021
Proposed Adj Required
Adopted Amended From The
Budget Budget Adopted Budget
2021 2021 2021
REVENUES
Taxes
Property $- $- $-
Sales - - -
Other (city PEG fees)- - -
Licenses and Permits 274,000 274,000 -
Intergovernmental - - -
Charges for Services 125,607 125,607 -
Fines and Forfeitures - - -
Miscellaneous 47,000 47,000 -
Transfers in & Other - - -
Total Revenues 446,607 446,607 -
EXPENDITURES
Personnel Expenses 410,200 410,200 -
Supplies, Services, and Taxes 53,875 53,875 -
Capital Expenditures 30,000 30,000 -
Debt Service - - -
Transfers Out - - -
Total Expenditures 494,075 494,075 -
CHANGES IN FUND BALANCE
Net change in fund balances (47,468) (47,468) -
Fund Balances-beginning 694,352 723,148 28,796
Fund Balances-ending $646,884 $675,680 $28,796
Budget Adjustments:
.
Net adjustment to ending fund balance required $-
Items Previously Approved by Council
Items Not Previously Approved by Council
FUND 113
CITY OF BREMERTON
2021 ANTICIPATED REVENUES, EXPENDITURES AND CHANGES IN FUND BALANCE
GIFT AND DONATION FUND
For the Year Ended December 31, 2021
Proposed Adj Required
Adopted Amended From The
Budget Budget Adopted Budget
2021 2021 2021
REVENUES
Taxes
Property $- $- $-
Sales - - -
Other - - -
Licenses and Permits - - -
Intergovernmental - - -
Charges for Services - - -
Fines and Forfeitures - - -
Miscellaneous 2,100 2,100 -
Transfers in - - -
Total Revenues 2,100 2,100 -
EXPENDITURES
Personnel Expenses - - -
Supplies, Services, and Taxes 17,000 17,000 -
Capital Expenditures - - -
Debt Service - - -
Transfers Out - - -
Total Expenditures 17,000 17,000 -
CHANGES IN FUND BALANCE
Net change in fund balances (14,900) (14,900) -
Fund Balances-beginning 84,633 89,536 4,903
Fund Balances-ending $69,733 $74,636 $4,903
Budget Adjustments:
Net adjustment to ending fund balance required $-
Items Previously Approved by Council
New Items Not Previously Approved by Council
FUND 114
CITY OF BREMERTON
2021 ANTICIPATED REVENUES, EXPENDITURES AND CHANGES IN FUND BALANCE
TRIAL IMPROVEMENT FUND
For the Year Ended December 31, 2021
Proposed Adj Required
Adopted Amended From The
Budget Budget Adopted Budget
2021 2021 2021
REVENUES
Taxes
Property $- $- $-
Sales - - -
Other - - -
Licenses and Permits - - -
Intergovernmental 18,000 18,000 -
Charges for Services - - -
Fines and Forfeitures - - -
Miscellaneous 600 600 -
Transfers in - - -
Total Revenues 18,600 18,600 -
EXPENDITURES
Personnel Expenses - - -
Supplies, Services, and Taxes 27,500 27,500 -
Capital Expenditures - - -
Debt Service - - -
Transfers Out - - -
Total Expenditures 27,500 27,500 -
CHANGES IN FUND BALANCE
Net change in working capital (8,900) (8,900) -
Fund Balances-beginning 83,806 98,739 14,933
Fund Balances-ending $74,906 $89,839 $14,933
Budget Adjustments:
Net adjustment to ending fund balance required $-
Items Not Previously Approved by Council
Items Previously Approved by Council
FUND 116
CITY OF BREMERTON
2021 ANTICIPATED REVENUES, EXPENDITURES AND CHANGES IN FUND BALANCE
ONE PERCENT FOR ARTS FUND
1For the Year Ended December 31, 2021
Proposed Adj Required
Adopted Amended From The
Budget Budget Adopted Budget
2021 2021 2021
REVENUES
Taxes
Property $- $- $-
Sales - - -
Other - - -
Licenses and Permits - - -
Intergovernmental - - -
Charges for Services - - -
Fines and Forfeitures - - -
Miscellaneous 1,700 1,700 -
Transfers in - - -
Total Revenues 1,700 1,700 -
EXPENDITURES
Personnel Expenses - - -
Supplies, Services, and Taxes 9,000 9,000 -
Capital Expenditures - - -
Debt Service - - -
Transfers Out - - -
Total Expenditures 9,000 9,000 -
CHANGES IN FUND BALANCE
Net change in working capital (7,300) (7,300) -
Fund Balances-beginning 19,557 12,820 (6,737)
Fund Balances-ending $12,257 $5,520 $(6,737)
Budget Adjustments:
Net adjustment to ending fund balance required $-
Items Previously Approved by Council
New Items Not Previously Approved by Council
FUND 117
CITY OF BREMERTON
2021 ANTICIPATED REVENUES, EXPENDITURES AND CHANGES IN FUND BALANCE
CONFERENCE CENTER OPERATIONS
For the Year Ended December 31, 2021
Proposed Adj Required
Adopted Amended From The
Budget Budget Adopted Budget
2021 2021 2021
REVENUES
Taxes
Property $- $- $-
Sales - - -
Other - - -
Licenses and Permits - - -
Intergovernmental - - -
Charges for Services 1,023,438 1,023,438 -
Fines and Forfeitures - - -
Miscellaneous 2,500 2,500 -
Transfers In & Other Revenue 353,500 353,500 -
Total Revenues 1,379,438 1,379,438 -
EXPENDITURES
Personnel Expenses - - -
Supplies, Services, and Taxes 1,227,104 1,227,104 -
Capital Expenditures - - -
Debt Service 4,390 4,390 -
Transfers Out 27,778 27,778 -
Total Expenditures 1,259,272 1,259,272 -
CHANGES IN FUND BALANCE
Net change in fund balances 120,166 120,166 -
Fund Balances-beginning 180,298 140,440 (39,858)
Fund Balances-ending $300,464 $260,606 $(39,858)
Budget Adjustments:
Net adjustment to ending fund balance required $-
Items Previously Approved by Council
New Items Not Previously Approved by Council
FUND 120
CITY OF BREMERTON
2021 ANTICIPATED REVENUES, EXPENDITURES AND CHANGES IN FUND BALANCE
2010 UTGO/LTGO (B)
For the Year Ended December 31, 2021
Proposed Adj Required
Adopted Amended From The
Budget Budget Adopted Budget
2021 2021 2021
REVENUES
Taxes
Property $900,000 $900,000 $-
Sales - - -
Other - - -
Licenses and Permits - - -
Intergovernmental - - -
Charges for Services - - -
Fines and Forfeitures - - -
Miscellaneous 1,000 1,000 -
Transfers in - - -
Total Revenues 901,000 901,000 -
EXPENDITURES
Personnel Expenses - - -
Supplies, Services, and Taxes - - -
Capital Expenditures - - -
Debt Service 856,088 856,088 -
Transfers Out - - -
Total Expenditures 856,088 856,088 -
CHANGES IN FUND BALANCE
Net change in fund balances 44,912 44,912 -
Fund Balances-beginning 153,531 (40,176) (193,707)
Fund Balances-ending $198,443 $4,736 $(193,707)
Budget Adjustments:
Net adjustment to ending fund balance required $-
Items Previously Approved by Council
New Items Not Previously Approved by Council
FUND 204
CITY OF BREMERTON
2021 ANTICIPATED REVENUES, EXPENDITURES AND CHANGES IN FUND BALANCE
GOVERNMENT CENTER LTGO
For the Year Ended December 31, 2021
Proposed Adj Required
Adopted Amended From The
Budget Budget Adopted Budget
2021 2021 2021
REVENUES
Taxes
Property $- $- $-
Sales - - -
Other - - -
Licenses and Permits - - -
Intergovernmental - - -
Charges for Services - - -
Fines and Forfeitures - - -
Miscellaneous 1,000 1,000 -
Transfers in & Other Revenue 330,000 330,000 -
Total Revenues 331,000 331,000 -
EXPENDITURES
Personnel Expenses - - -
Supplies, Services, and Taxes - - -
Capital Expenditures - - -
Debt Service 331,113 331,113 -
Transfers Out - - -
Total Expenditures 331,113 331,113 -
CHANGES IN FUND BALANCE
Net change in fund balances (113) (113) -
Fund Balances-beginning 85,419 86,007 588
Fund Balances-ending $85,306 $85,894 $588
Budget Adjustments:
Net adjustment to ending fund balance required $-
Items Previously Approved by Council
New Items Not Previously Approved by Council
FUND 205
CITY OF BREMERTON
2021 ANTICIPATED REVENUES, EXPENDITURES AND CHANGES IN FUND BALANCE
2015 PUBLIC SAFETY BOND FUND
For the Year Ended December 31, 2021
Proposed Adj Required
Adopted Amended From The
Budget Budget Adopted Budget
2021 2021 2021
REVENUES
Taxes
Property $550,000 $550,000 $-
Sales - - -
Other - - -
Licenses and Permits - - -
Intergovernmental - - -
Charges for Services - - -
Fines and Forfeitures - - -
Miscellaneous 750 750 -
Transfers in & Other Revenue - - -
Total Revenues 550,750 550,750 -
EXPENDITURES
Personnel Expenses - - -
Supplies, Services, and Taxes - - -
Capital Expenditures - - -
Debt Service 500,550 500,550 -
Transfers Out - - -
Total Expenditures 500,550 500,550 -
CHANGES IN FUND BALANCE
Net change in fund balances 50,200 50,200 -
Fund Balances-beginning 87,981 85,830 (2,151)
Fund Balances-ending $138,181 $136,030 $(2,151)
Budget Adjustments:
Net adjustment to ending fund balance required $-
Items Previously Approved by Council
New Items Not Previously Approved by Council
FUND 206
CITY OF BREMERTON
2021 ANTICIPATED REVENUES, EXPENDITURES AND CHANGES IN FUND BALANCE
2019 REFUNDING LTGO
For the Year Ended December 31, 2021
Proposed Adj Required
Adopted Amended From The
Budget Budget Adopted Budget
2021 2021 2021
REVENUES
Taxes
Property $- $- $-
Sales 330,000 330,000 -
Other - - -
Licenses and Permits - - -
Intergovernmental 3,000 3,000 -
Charges for Services - - -
Fines and Forfeitures - - -
Miscellaneous 2,600 2,600 -
Transfers in & Other Revenue 145,000 145,000 -
Total Revenues 480,600 480,600 -
EXPENDITURES
Personnel Expenses - - -
Supplies, Services, and Taxes - - -
Capital Expenditures - - -
Debt Service 530,844 530,844 -
Transfers Out - - -
Total Expenditures 530,844 530,844 -
CHANGES IN FUND BALANCE
Net change in fund balances (50,244) (50,244) -
Fund Balances-beginning 225,666 225,736 70
Fund Balances-ending $175,422 $175,492 $70
Budget Adjustments:
Net adjustment to ending fund balance required $-
Items Previously Approved by Council
New Items Not Previously Approved by Council
FUND 207
CITY OF BREMERTON
2021 ANTICIPATED REVENUES, EXPENDITURES AND CHANGES IN FUND BALANCE
GENERAL GOVERNMENT CAPITAL IMPROVEMENT FUND
For the Year Ended December 31, 2021
Proposed Adj Required
Adopted Amended From The
Budget Budget Adopted Budget
2021 2021 2021
REVENUES
Taxes
Property $- $- $-
Sales - - -
Other (Real Estate Excise Taxes)1,650,000 1,650,000 -
Licenses and Permits - - -
Intergovernmental - - -
Charges for Services - - -
Fines and Forfeitures - - -
Miscellaneous 40,000 40,000 -
Transfers in & Other Revenue - - -
Total Revenues 1,690,000 1,690,000 -
EXPENDITURES
Personnel Expenses - - -
Supplies, Services, and Taxes - - -
Capital Expenditures - - -
Debt Service - - -
Transfers Out 2,126,544 2,142,544 16,000
Total Expenditures 2,126,544 2,142,544 16,000
CHANGES IN FUND BALANCE
Net change in fund balances (436,544) (452,544) (16,000)
Fund Balances-beginning 2,666,968 3,408,575 741,607
Fund Balances-ending $2,230,424 $2,956,031 $725,607
Budget Adjustments:
Expenditure - Increase transfers out to trans capital projects for 10% match HSIP grant. (16,000)
Net adjustment required to the ending fund balance $(16,000)
Items Previously Approved by Council
Items Previously Approved by Council
FUND 308
CITY OF BREMERTON
2021 ANTICIPATED REVENUES, EXPENDITURES AND CHANGES IN FUND BALANCE
PARK FACILITIES CONSTRUCTION FUND
For the Year Ended December 31, 2021
Proposed Adj Required
Adopted Amended From The
Budget Budget Adopted Budget
2021 2021 2021
REVENUES
Taxes
Property $- $- $-
Sales - - -
Other - - -
Licenses and Permits - - -
Intergovernmental 1,014,400 1,014,400 -
Charges for Services - - -
Fines and Forfeitures - - -
Miscellaneous 49,900 49,900 -
Transfers in & Other Revenue 208,250 208,250 -
Total Revenues 1,272,550 1,272,550 -
EXPENDITURES
Personnel Expenses - - -
Supplies, Services, and Taxes - - -
Capital Expenditures 1,304,150 1,304,150 -
Debt Service - - -
Transfers Out - - -
Total Expenditures 1,304,150 1,304,150 -
CHANGES IN FUND BALANCE
Net change in fund balances (31,600) (31,600) -
Fund Balances-beginning 132,711 301,520 168,809
Fund Balances-ending $101,111 $269,920 $168,809
Budget Adjustments:
Net adjustment required to the ending fund balance $-
Items Previously Approved by Council
Items Not Previously Approved by Council
FUND 310
CITY OF BREMERTON
2021 ANTICIPATED REVENUES, EXPENDITURES AND CHANGES IN FUND BALANCE
RESIDENTIAL STREET CAPITAL
1For the Year Ended December 31, 2021
Proposed Adj Required
Adopted Amended From The
Budget Budget Adopted Budget
2021 2021 2021
REVENUES
Taxes
Property $- $- $-
Sales - - -
Other 1,091,301 1,091,301 -
Licenses and Permits 125,000 125,000 -
Intergovernmental 10,000 10,000 -
Charges for Services - - -
Fines and Forfeitures - - -
Miscellaneous 15,000 15,000 -
Transfers in 100,000 100,000 -
Total Revenues 1,341,301 1,341,301 -
EXPENDITURES
Personnel Expenses 238,200 238,200 -
Supplies, Services, and Taxes 824,228 824,228 -
Capital Expenditures 376,000 376,000 -
Debt Service - - -
Transfers Out - - -
Total Expenditures 1,438,428 1,438,428 -
CHANGES IN FUND BALANCE
Net change in fund balances (97,127) (97,127) -
Fund Balances-beginning 2,323,199 2,568,216 245,017
Fund Balances-ending $2,226,072 $2,471,089 $245,017
Budget Adjustments:
Net adjustment to ending fund balance required $-
Items Previously Approved by Council
New Items Not Previously Approved by Council
FUND 314
CITY OF BREMERTON
2021 ANTICIPATED REVENUES, EXPENDITURES AND CHANGES IN FUND BALANCE
TRANSPORTATION CAPITAL PROJECTS
For the Year Ended December 31, 2021
Proposed Adj Required
Adopted Amended From The
Budget Budget Adopted Budget
2021 2021 2021
REVENUES
Taxes
Property $- $- $-
Sales - - -
Other 491,301 491,301 -
Licenses and Permits - - -
Intergovernmental 8,569,972 8,655,972 86,000
Charges for Services - - -
Fines and Forfeitures - - -
Miscellaneous 145,000 145,000 -
Transfers in 1,080,544 1,096,544 16,000
Total Revenues 10,286,817 10,388,817 102,000
EXPENDITURES
Personnel Expenses - - -
Supplies, Services, and Taxes 1,060,000 1,160,000 100,000
Capital Expenditures 9,683,548 9,683,548 -
Debt Service - - -
Transfers Out - - -
Total Expenditures 10,743,548 10,843,548 100,000
CHANGES IN FUND BALANCE
Net change in fund balances (456,731) (454,731) 2,000
Fund Balances-beginning 936,247 1,425,956 489,709
Fund Balances-ending $479,516 $971,225 $491,709
Budget Adjustments:
Revenue - Increase Intergovernmental in for 10% HSIP grant. 16,000
Revenue - Increase Intergovernmental for West Kitsap Way Recon/Rechannel Study 86,000
Expenditure - Increase Supplies in Services for West Kitsap Way Recon/Rechannel Study match (100,000)
Net adjustment required to the ending fund balance $2,000
Items Previously Approved by Council
Items Not Previously Approved by Council
FUND 315
CITY OF BREMERTON
2021 ANTICIPATED REVENUES, EXPENDITURES AND CHANGES IN FUND BALANCE
FIRE PUBLIC SAFETY CAPITAL
For the Year Ended December 31, 2021
Proposed Adj Required
Adopted Amended From The
Budget Budget Adopted Budget
2021 2021 2021
REVENUES
Taxes
Property $- $- $-
Sales - - -
Other - - -
Licenses and Permits - - -
Intergovernmental - - -
Charges for Services - - -
Fines and Forfeitures - - -
Miscellaneous - - -
Transfers in & Other Revenue - - -
Total Revenues - - -
EXPENDITURES
Personnel Expenses - - -
Supplies, Services, and Taxes 442,163 442,163 -
Capital Expenditures 349,000 472,078 123,078
Debt Service - - -
Transfers Out 1,000 1,000 -
Total Expenditures 792,163 915,241 123,078
CHANGES IN FUND BALANCE
Net change in fund balances (792,163) (915,241) (123,078)
Fund Balances-beginning 792,163 915,241 123,078
Fund Balances-ending $- $(0) $(0)
Budget Adjustments:
Expenditure - Increase capital expenditures (carry forward)(123,078)
Net adjustment required to the ending fund balance $(123,078)
Items Not Previously Approved by Council
Items Previously Approved by Council
FUND 316
CITY OF BREMERTON
2021 ANTICIPATED REVENUES, EXPENDITURES AND CHANGES IN FUND BALANCE
AFFORDABLE HOUSING CAPITAL FUND
For the Year Ended December 31, 2021
Proposed Adj Required
Adopted Amended From The
Budget Budget Adopted Budget
2021 2021 2021
REVENUES
Taxes
Property $- $- $-
Sales - - -
Other - - -
Licenses and Permits - - -
Intergovernmental - - -
Charges for Services - - -
Fines and Forfeitures - - -
Miscellaneous - - -
Transfers in 100,000 100,000 -
Total Revenues 100,000 100,000 -
EXPENDITURES
Personnel Expenses - - -
Supplies, Services, and Taxes 100,000 100,000 -
Capital Expenditures - - -
Debt Service - - -
Transfers Out - - -
Total Expenditures 100,000 100,000 -
CHANGES IN FUND BALANCE
Net change in working capital - - -
Fund Balances-beginning working capital 2,343 3,098 755
Fund Balances-ending working capital $2,343 $3,098 $755
Budget Adjustments:
Net adjustment required to the ending fund balance $0
New Items Not Previously Approved by Council
Items Previously Approved by Council
FUND 318
City of Bremerton
2021 ANTICIPATED REVENUES, EXPENDITURES AND CHANGES IN FUND BALANCE
WATER UTILITY
For the Year Ended December 31, 2021
Proposed Adj Required
Adopted Amended From The
Budget Budget Adopted Budget
2021 2021 2021
REVENUES
Taxes
Property $- $- $-
Sales - - -
Other - - -
Licenses and Permits - - -
Intergovernmental - - -
Charges for Services 14,945,857 14,945,857 -
Fines and Forfeitures 20,000 20,000 -
Miscellaneous 533,000 533,000 -
Transfers in & Other Revenue - - -
Total Revenues 15,498,857 15,498,857 -
EXPENDITURES
Personnel Expenses 4,981,600 5,008,150 26,550
Supplies, Services, and Taxes 7,580,526 7,580,526 -
Capital Expenditures - - -
Debt Service 923,346 923,346 -
Transfers Out 2,545,000 2,585,500 40,500
Total Expenditures 16,030,472 16,097,522 67,050
CHANGES IN WORKING CAPITAL BALANCE
Net change in working capital (531,615) (598,665) (67,050)
Fund Balances-beginning working capital 2,079,768 4,454,909 2,375,141
Fund Balances-ending working capital $1,548,153 $3,856,244 $2,308,091
Budget Adjustments:
Expenditure - Increase transfers out for Development Inspector and Engineer (40,500)
Expenditure - Increase personnel in Water Operations for Internal Services Manager (26,550)
Net adjustment required to the ending fund balance $(67,050)
Items Previously Approved by Council
New Items Not Previously Approved by Council
FUND 401
CITY OF BREMERTON
2021 ANTICIPATED REVENUES, EXPENDITURES AND CHANGES IN FUND BALANCE
WATER CAPITAL
For the Year Ended December 31, 2021
Proposed Adj Required
Adopted Amended From The
Budget Budget Adopted Budget
2021 2021 2021
REVENUES
Taxes
Property $- $- $-
Sales - - -
Other - - -
Licenses and Permits - - -
Intergovernmental - - -
Charges for Services - - -
Fines and Forfeitures - - -
Miscellaneous 1,060,600 1,060,600 -
Transfers in & Other Revenue 2,545,000 2,545,000 -
Total Revenues 3,605,600 3,605,600 -
EXPENDITURES
Personnel Expenses - - -
Supplies, Services, and Taxes 135,000 135,000 -
Capital Expenditures 6,707,085 6,707,085 -
Debt Service - - -
Transfers Out - - -
Total Expenditures 6,842,085 6,842,085 -
CHANGES IN WORKING CAPITAL BALANCE
Net change in working capital (3,236,485) (3,236,485) -
Fund Balances-beginning working capital 8,689,708 11,345,123 2,655,415
Fund Balances-ending working capital $5,453,223 $8,108,638 $2,655,415
Budget Adjustments:
Net adjustment required to the ending fund balance $-
Items Previously Approved by Council
New Items Not Previously Approved by Council
FUND 404
CITY OF BREMERTON
2021 ANTICIPATED REVENUES, EXPENDITURES AND CHANGES IN FUND BALANCE
GOLD MOUNTAIN GOLF COMPLEX
For the Year Ended December 31, 2021
Proposed Adj Required
Adopted Amended From The
Budget Budget Adopted Budget
2021 2021 2021
REVENUES
Taxes
Property $- $- $-
Sales - - -
Other - - -
Licenses and Permits - - -
Intergovernmental - - -
Charges for Services 4,734,564 4,734,564 -
Fines and Forfeitures - - -
Miscellaneous 24,271 24,271 -
Transfers in - - -
Total Revenues 4,758,835 4,758,835 -
EXPENDITURES
Personnel Expenses - - -
Supplies, Services, and Taxes 4,219,240 4,219,240 -
Capital Expenditures - - -
Debt Service 432,195 432,195 -
Transfers Out - - -
Total Expenditures 4,651,435 4,651,435 -
CHANGES IN FUND BALANCE
Net change in working capital 107,400 107,400 -
Fund Balances-beginning working capital 755,255 940,524 185,269
Fund Balances-ending working capital $862,655 $1,047,924 $185,269
Budget Adjustments:
Net adjustment required to the ending fund balance $-
Items Previously Approved by Council
Items Not Previously Approved by Council
FUND 407
CITY OF BREMERTON
2021 ANTICIPATED REVENUES, EXPENDITURES AND CHANGES IN FUND BALANCE
WASTEWATER UTILITY
For the Year Ended December 31, 2021
Proposed Adj Required
Adopted Amended From The
Budget Budget Adopted Budget
2021 2021 2021
REVENUES
Taxes
Property $- $- $-
Sales 90,000 90,000 -
Other 12,000 12,000 -
Licenses and Permits - - -
Intergovernmental - - -
Charges for Services 16,394,038 16,394,038 -
Fines and Forfeitures 18,000 18,000 -
Miscellaneous 23,000 23,000 -
Transfers in & Other Revenue - - -
Total Revenues 16,537,038 16,537,038 -
EXPENDITURES
Personnel Expenses 3,517,500 3,526,350 8,850
Supplies, Services, and Taxes 8,800,976 8,929,961 128,985
Capital Expenditures - - -
Debt Service 2,094,871 2,094,871 -
Transfers Out 2,735,000 2,775,500 40,500
Total Expenditures 17,148,347 17,326,682 178,335
CHANGES IN FUND BALANCE
Net change in working capital (611,309) (789,644) (178,335)
Fund Balances-beginning working capital 2,147,047 3,808,456 1,661,409
Fund Balances-ending working capital $1,535,738 $3,018,812 $1,483,074
Budget Adjustments:
Expenditure - Increase transfers out for Development Inspector and Engineer (40,500)
Expenditure - Increase personnel in Wastewater Admin for Internal Services Manager (8,850)
Expenditure - Carryover for Fleet for Prior year vehicle (128,985)
Net adjustment required to the ending fund balance $(178,335)
Items Previously Approved by Council
New Items Not Previously Approved by Council
FUND 451
CITY OF BREMERTON
2021 ANTICIPATED REVENUES, EXPENDITURES AND CHANGES IN FUND BALANCE
WASTEWATER CAPITAL
For the Year Ended December 31, 2021
Proposed Adj Required
Adopted Amended From The
Budget Budget Adopted Budget
2021 2021 2021
REVENUES
Taxes
Property $- $- $-
Sales - - -
Other - - -
Licenses and Permits - - -
Intergovernmental - - -
Charges for Services - - -
Fines and Forfeitures - - -
Miscellaneous 260,600 260,600 -
Transfers in & Other Revenue 7,735,000 9,735,419 2,000,419
Total Revenues 7,995,600 9,996,019 2,000,419
EXPENDITURES
Personnel Expenses - - -
Supplies, Services, and Taxes 450,000 450,000 -
Capital Expenditures 8,591,446 10,591,865 2,000,419
Debt Service - - -
Transfers Out - - -
Total Expenditures 9,041,446 11,041,865 2,000,419
CHANGES IN FUND BALANCE
Net change in working capital (1,045,846) (1,045,846) -
Fund Balances-beginning working capital 2,228,538 3,374,292 1,145,754
Fund Balances-ending working capital $1,182,692 $2,328,446 $1,145,754
Budget Adjustments:
Revenue-Increase Transfers In for Interfund Loan Oyster Bay Beach Sewer Upgrades project 2,000,419
Expenditure-Increase Capital Expenditures for Oyster Bay Beach Sewer Upgrades project (2,000,419)
Net adjustment required to the ending fund balance $-
Items Previously Approved by Council
New Items Not Previously Approved by Council
FUND 454
CITY OF BREMERTON
2021 ANTICIPATED REVENUES, EXPENDITURES AND CHANGES IN FUND BALANCE
STORMWATER UTILITY
For the Year Ended December 31, 2021
Proposed Adj Required
Adopted Amended From The
Budget Budget Adopted Budget
2021 2021 2021
REVENUES
Taxes
Property $- $- $-
Sales - - -
Other - - -
Licenses and Permits - - -
Intergovernmental - - -
Charges for Services 4,905,506 4,905,506 -
Fines and Forfeitures 7,000 7,000 -
Miscellaneous 7,500 7,500 -
Transfers in & Other Revenue 75,000 75,000 -
Total Revenues 4,995,006 4,995,006 -
EXPENDITURES
Personnel Expenses 1,555,700 1,572,400 16,700
Supplies, Services, and Taxes 2,561,624 2,561,624 -
Capital Expenditures - - -
Debt Service 223,655 223,655 -
Transfers Out 740,000 780,500 40,500
Total Expenditures 5,080,979 5,138,179 57,200
CHANGES IN FUND BALANCE
Net change in working capital (85,973) (143,173) (57,200)
Fund Balances-beginning working capital 607,645 1,238,630 630,985
Fund Balances-ending working capital $521,672 $1,095,457 $573,785
Budget Adjustments:
Expenditure - Increase transfers out for Development Inspector and Engineer (40,500)
Expenditure - Increase personnel in Storm Water Utility for Internal Services Manager (8,850)
Expenditure - Increase personnel in Engineering for Transportation Project Manager (7,850)
Net adjustment required to the ending fund balance $(57,200)
New Items Not Previously Approved by Council
Items Previously Approved by Council
FUND 481
CITY OF BREMERTON
2021 ANTICIPATED REVENUES, EXPENDITURES AND CHANGES IN FUND BALANCE
STORMWATER CAPITAL
For the Year Ended December 31, 2021
Proposed Adj Required
Adopted Amended From The
Budget Budget Adopted Budget
2021 2021 2021
REVENUES
Taxes
Property $- $- $-
Sales - - -
Other - - -
Licenses and Permits - - -
Intergovernmental - - -
Charges for Services - - -
Fines and Forfeitures - - -
Miscellaneous 1,355,961 1,355,961 -
Transfers in & Other Revenue 2,706,968 2,706,968 -
Total Revenues 4,062,929 4,062,929 -
EXPENDITURES
Personnel Expenses - - -
Supplies, Services, and Taxes 200,000 200,000 -
Capital Expenditures 5,217,195 5,217,195 -
Debt Service - - -
Transfers Out - - -
Total Expenditures 5,417,195 5,417,195 -
CHANGES IN FUND BALANCE
Net change in working capital (1,354,266) (1,354,266) -
Fund Balances-beginning working capital 4,875,256 5,671,750 796,494
Fund Balances-ending working capital $3,520,990 $4,317,484 $796,494
Budget Adjustments:
Net adjustment required to the ending fund balance $-
Items Previously Approved by Council
New Items Not Previously Approved by Council
FUND 484
CITY OF BREMERTON
2021 ANTICIPATED REVENUES, EXPENDITURES AND CHANGES IN FUND BALANCE
UTILITY DEBT RESERVE
For the Year Ended December 31, 2021
Proposed Adj Required
Adopted Amended From The
Budget Budget Adopted Budget
2021 2021 2021
REVENUES
Taxes
Property $- $- $-
Sales - - -
Other - - -
Licenses and Permits - - -
Intergovernmental - - -
Charges for Services - - -
Fines and Forfeitures - - -
Miscellaneous 22,000 22,000 -
Transfers in and other - - -
Total Revenues 22,000 22,000 -
EXPENDITURES
Personnel Expenses - - -
Supplies, Services, and Taxes - - -
Capital Expenditures - - -
Debt Service - - -
Transfers Out - - -
Total Expenditures - - -
CHANGES IN FUND BALANCE
Net change in working capital 22,000 22,000 -
Fund Balances-beginning working capital 1,716,336 1,719,347 3,011
Fund Balances-ending working capital $1,738,336 $1,741,347 $3,011
Budget Adjustments:
Net adjustment to ending fund balance required $-
Items Previously Approved by Council
New Items Not Previously Approved by Council
FUND 499
CITY OF BREMERTON
2021 ANTICIPATED REVENUES, EXPENDITURES AND CHANGES IN FUND BALANCE
RISK MANAGEMENT INTERNAL SERVICE FUND
For the Year Ended December 31, 2021
Proposed Adj Required
Adopted Amended From The
Budget Budget Adopted Budget
2021 2021 2021
REVENUES
Taxes
Property $- $- $-
Sales - - -
Other - - -
Licenses and Permits - - -
Intergovernmental - - -
Charges for Services - - -
Fines and Forfeitures - - -
Miscellaneous 2,207,829 2,207,829 -
Transfers in - - -
Total Revenues 2,207,829 2,207,829 -
EXPENDITURES
Personnel Expenses 390,000 565,000 175,000
Supplies, Services, and Taxes 1,812,829 2,082,829 270,000
Capital Expenditures - - -
Debt Service - - -
Transfers Out - - -
Total Expenditures 2,202,829 2,647,829 445,000
CHANGES IN FUND BALANCE
Net change in working capital 5,000 (440,000) (445,000)
Fund Balances-beginning working capital 2,873,775 2,732,927 (140,848)
Fund Balances-ending working capital $2,878,775 $2,292,927 $(585,848)
Budget Adjustments:
Expenditure-Increase supplies under services in Risk Admin for increase in insurance premiums (270,000)
Expenditure-Increase personnel in Workers Compensation Srvs for increase in medical costs (175,000)
Net adjustment required to the ending fund balance $(445,000)
Items Previously Approved by Council
New Items Not Previously Approved by Council
FUND 503
CITY OF BREMERTON
2021 ANTICIPATED REVENUES, EXPENDITURES AND CHANGES IN FUND BALANCE
EMPLOYMENT SECURITY
For the Year Ended December 31, 2021
Proposed Adj Required
Adopted Amended From The
Budget Budget Adopted Budget
2021 2021 2021
REVENUES
Taxes
Property $- $- $-
Sales - - -
Other - - -
Licenses and Permits - - -
Intergovernmental - - -
Charges for Services - - -
Fines and Forfeitures - - -
Miscellaneous 4,000 4,000 -
Transfers in - - -
Total Revenues 4,000 4,000 -
EXPENDITURES
Personnel Expenses 80,000 80,000 -
Supplies, Services, and Taxes - - -
Capital Expenditures - - -
Debt Service - - -
Transfers Out - - -
Total Expenditures 80,000 80,000 -
CHANGES IN FUND BALANCE
Net change in working capital (76,000) (76,000) -
Fund Balances-beginning working capital 157,977 187,368 29,391
Fund Balances-ending working capital $81,977 $111,368 $29,391
Budget Adjustments:
Net adjustment to ending fund balance required $-
Items Previously Approved by Council
New Items Not Previously Approved by Council
FUND 506
CITY OF BREMERTON
2021 ANTICIPATED REVENUES, EXPENDITURES AND CHANGES IN FUND BALANCE
ACCUMULATED LEAVE LIABILITY
For the Year Ended December 31, 2021
Proposed Adj Required
Adopted Amended From The
Budget Budget Adopted Budget
2021 2021 2021
REVENUES
Taxes
Property $- $- $-
Sales - - -
Other - - -
Licenses and Permits - - -
Intergovernmental - - -
Charges for Services - - -
Fines and Forfeitures - - -
Miscellaneous 582,500 582,500 -
Transfers in - - -
Total Revenues 582,500 582,500 -
EXPENDITURES
Personnel Expenses 588,700 588,700 -
Supplies, Services, and Taxes - - -
Capital Expenditures - - -
Debt Service - - -
Transfers Out - - -
Total Expenditures 588,700 588,700 -
CHANGES IN FUND BALANCE
Net change in working capital (6,200) (6,200) -
Fund Balances-beginning working capital 270,939 449,606 178,667
Fund Balances-ending working capital $264,739 $443,406 $178,667
Budget Adjustments:
Net adjustment to ending fund balance required $-
Items Previously Approved by Council
New Items Not Previously Approved by Council
FUND 507
CITY OF BREMERTON
2021 ANTICIPATED REVENUES, EXPENDITURES AND CHANGES IN FUND BALANCE
EQUIPMENT RENTAL RESERVE - OPERATIONS AND MAINTENANCE
For the Year Ended December 31, 2021
Proposed Adj Required
Adopted Amended From The
Budget Budget Adopted Budget
2021 2021 2021
REVENUES
Taxes
Property $- $- $-
Sales - - -
Other - - -
Licenses and Permits - - -
Intergovernmental - - -
Charges for Services 1,788,869 1,788,869 -
Fines and Forfeitures - - -
Miscellaneous 4,350 4,350 -
Transfers in & Other Financing - - -
Total Revenues 1,793,219 1,793,219 -
EXPENDITURES
Personnel Expenses 578,900 578,900 -
Supplies, Services, and Taxes 1,211,469 1,211,469 -
Capital Expenditures - - -
Debt Service - - -
Transfers Out - - -
Total Expenditures 1,790,369 1,790,369 -
CHANGES IN FUND BALANCE
Net change in working capital 2,850 2,850 -
Fund Balances-beginning working capital 6,064 111,511 105,447
Fund Balances-ending working capital $8,914 $114,361 $105,447
Budget Adjustments:
Net adjustment to ending fund balance required $-
New Items Not Previously Approved by Council
Items Previously Approved by Council
FUND 509
CITY OF BREMERTON
2021 ANTICIPATED REVENUES, EXPENDITURES AND CHANGES IN FUND BALANCE
EQUIPMENT RENTAL RESERVE - RESERVES
For the Year Ended December 31, 2021
Proposed Adj Required
Adopted Amended From The
Budget Budget Adopted Budget
2021 2021 2021
REVENUES
Taxes
Property $- $- $-
Sales - - -
Other - - -
Licenses and Permits - - -
Intergovernmental - - -
Charges for Services - - -
Fines and Forfeitures - - -
Miscellaneous 60,000 60,000 -
Transfers in & Other 1,429,943 2,111,933 681,990
Total Revenues 1,489,943 2,171,933 681,990
EXPENDITURES
Personnel Expenses - - -
Supplies, Services, and Taxes 6,623 688,613 681,990
Capital Expenditures 1,163,095 1,163,095 -
Debt Service - - -
Transfers Out & Other - - -
Total Expenditures 1,169,718 1,851,708 681,990
CHANGES IN FUND BALANCE
Net change in working capital 320,225 320,225 -
Fund Balances-beginning working capital 4,365,234 4,641,715 276,481
Fund Balances-ending working capital $4,685,459 $4,961,940 276,481
Budget Adjustments:
Revenue - Increase other revenue for capital contributions to purchases for Fire (carryover)435,000
Expenditure - Increase capital - vehicles for purchases for Fire (carryover)(435,000)
Revenue - Increase other revenue for capital contributions to purchases for Public Works-Wastewater (carryover)207,205
Expenditure - Increase capital - vehicles for purchases for Public Works (carryover)(207,205)
Revenue - Increase other revenue for capital contributions to purchases for Police (carryover)39,785
Expenditure - Increase capital - vehicles for purchases for Police (carryover)(39,785)
Net adjustment required to the ending fund balance $0
Items Previously Approved by Council
New Items Not Previously Approved by Council
FUND 510
CITY OF BREMERTON
2021 ANTICIPATED REVENUES, EXPENDITURES AND CHANGES IN FUND BALANCE
INFORMATION SERVICES
For the Year Ended December 31, 2021
Proposed Adj Required
Adopted Amended From The
Budget Budget Adopted Budget
2021 2021 2021
REVENUES
Taxes
Property $- $- $-
Sales - - -
Other - - -
Licenses and Permits - - -
Intergovernmental - - -
Charges for Services 1,766,000 1,766,000 -
Fines and Forfeitures - - -
Miscellaneous - - -
Transfers in - - -
Total Revenues 1,766,000 1,766,000 -
EXPENDITURES
Personnel Expenses 918,600 918,600 -
Supplies, Services, and Taxes 845,596 871,596 26,000
Capital Expenditures - - -
Debt Service - - -
Transfers Out - - -
Total Expenditures 1,764,196 1,790,196 26,000
CHANGES IN FUND BALANCE
Net change in working capital 1,804 (24,196) (26,000)
Fund Balances-beginning working capital 836,731 1,183,557 346,826
Fund Balances-ending working capital $838,535 $1,159,361 $320,826
Budget Adjustments:
Expenditure- Purchase Microsoft AZURE Active Directory (26,000)
Net adjustment required to the ending fund balance $(26,000)
Items Not Previously Approved by Council
Items Previously Approved by Council
FUND 511
1
l Memorandum
To: City Council
Mayor Greg Wheeler
From: Karen Wikle, Budget Analyst
Re: 2021 Mid-Year Budget Amendment, Ordinance No. ___
Date: June 9, 2021
The city adopted the 2021 budget by Ordinance No. 5408 on November 18, 2020. Each year the City
assesses its current fiscal year budget and addresses any needed adjustments that have come to the
attention of the staff in Financial Services. Adjustments for both revenue and expenditures are brought
forward for the following reasons: to adjust the estimated beginning fund balances to actual, to account
for subsequent unanticipated/unexpected conditions, to account for previously approved projects that
were underway in 2020 that were not concluded and require carryover expenditure authority, to reallocate
revenue and expenditure line items within budget control categories with zero net increase, and to
formally account for various council motions/resolutions previously approved to date during 2021.
Enclosed is the mid-year budget amendment ordinance and detailed supporting schedules. Noteworthy
items not previously approved by Council, and/or are significant, are as follows:
General Fund
The actual beginning fund balance was higher than anticipated by $2,448,085. The additional
reserves came from $224,725 in additional revenue and a $2,223,360 savings in expenditures
throughout all departments within the General Fund.
A $215,175 increase in personnel costs from various departments based on Council approval of
additional FTE’s.
A $474,785 expenditure for carry over from fiscal year 2020, Type 6 Wildland Fire Truck and
Medic Unit for Fire as well as Police vehicles for Police.
Other Funds
Transportation Capital Projects Fund includes an increase in Intergovernmental revenue by
$86,000 and an increase in expenditure services by $100,000 for the West Kitsap Way
Recon/Rechannel Study.
Due to an increase in available funding, the Wastewater Capital fund includes an increase in loan
revenue of $2,000,419 as well as capital expenditures of $2,000,419 for Oyster Bay Beach Sewer
Upgrades project.
2
The Risk Management Fund includes an additional $445,000 in expenditure appropriations due to
unforeseen and unexpected medical expenses and increased insurance premiums.
The Equipment Rental Reserve-Reserves Fund includes an additional $681,990 in capital
expenditures for carry over rom fiscal year 2020. The expenditure is funded by the General Fund,
as stated above as well as funding from the Street Fund of $78,220 and Wastewater Utility Fund
of $128,985.
Budget adjustments are necessary to properly reflect the nature and extent of revenues and expenditures
of the various City funds and departments. The attached ordinance and supporting schedules (by fund)
include adjustments by budget control category for both revenues and expenditures with a City-wide
appropriation, including fund balance, of $209,449,428.
AGENDA BILL
CITY OF BREMERTON
CITY COUNCIL
SUBJECT: Affiliation Agreement with
Central Washington University for Training of
Health Care Professionals
Study Session Date: June 9, 2021
COUNCIL MEETING Date: June 16, 2021
Department: Fire
Presenter: Pat McGanney
Phone: (360) 473-5381
SUMMARY: The purpose of this agreement is for the Bremerton Fire Department to commit to
training health care professionals, to provide desirable clinical learning experiences and facilities for
Central Washington University Healthcare students.
ATTACHMENTS: Affiliation Agreement
FISCAL IMPACTS (Include Budgeted Amount): None
STUDY SESSION AGENDA: ☒ Limited Presentation ☐ Full Presentation
STUDY SESSION ACTION: ☐ Consent Agenda ☐ General Business ☐ Public Hearing
RECOMMENDED MOTION:
Move to approve the Affiliation Agreement with Central Washington University; and authorize the
Mayor to finalize and execute the agreement with substantially the same terms and conditions as
presented.
COUNCIL ACTION: Approve Deny Table Continue No Action
Form Updated 01/02/2018
B7
Affiliation Agreement
Page 1
AFFILIATION AGREEMENT BETWEEN
CENTRAL WASHINGTON UNIVERSITY
AND
CITY OF BREMERTON
This Agreement is made and entered into between Central Washington University
(“School”), located at 400 E. University Way, Ellensburg, Washington, 98926-7480, and City of
Bremerton (“Training Site”), located at 911 Park Avenue, Bremerton, WA 98337. The purpose
of this Agreement is for Training Site to provide desirable learning experiences (“the education
program”) for School’s students who are enrolled in School’s educational/clinical programs. In
consideration of the mutual covenants and agreements contained herein, School and Training
Site agree as follows:
I. GENERAL PROVISIONS
A.School and Training Site agree that contemporaneous with or following execution
of this Agreement and within the scope of its provisions, School may develop letter
agreements with Training Site to formalize operational details of the education program.
These details include, but are not limited to, the following:
•Beginning dates and length of experience (to be mutually agreed upon at least one month
before the beginning of the education program);
•Number of students eligible to participate in the education program;
•Specific days, hours and locations for the education program;
•Specific learning objectives and performance expectations for students;
•Specific allocation of responsibilities for the faculty Liaison, education Supervisor, and
Preceptors, if any, referenced elsewhere in this Agreement;
•Deadlines and format for student progress reports and evaluation forms.
Any such letter agreements will be considered to be attachments to this Agreement, will be
binding when signed by authorized representatives of each party, and may be modified by
subsequent letter agreements signed by authorized representatives of each party.
B.School and Training Site will jointly plan the education program and jointly
evaluate students. Exchange of information will be maintained by on-site visits when practical
and by letter or telephone in other instances.
C.School and Training Site will instruct their respective faculty, staff, and students
participating in the education program to maintain confidentiality of student and patient
information as required by law and by the policies and procedures of School and Training Site.
D.There will be no payment of charges or fees between School and Training Site.
15177
Affiliation Agreement
Page 2
E.There will be no discrimination against any program participant or applicant
covered under this Agreement because of race, color, religion, national origin, age, handicap,
status as a Vietnam era or disabled veteran, sex, or sexual orientation, nor will School or
Training Site engage in such discrimination in their employment or personnel policies.
II. SCHOOL’S RESPONSIBILITIES
A.School will provide information to Training Site concerning its curriculum and the
professional and academic credentials of its faculty for the students at Training Site. School
will designate an appropriately qualified and credentialed faculty member to coordinate and act
as the Liaison with Training Site. School will be responsible for instruction and administration
of the students’ academic education program. School will notify Training Site in writing of any
change or proposed change of its Liaison. School will have the final responsibility for grading
students.
B.School’s faculty will meet with the Training Site education Supervisor Preceptors,
if any, at the beginning and end of the education program to discuss and evaluate the
education program. These meetings will take place in person if practicable, otherwise by
telephone conference. School is responsible for arranging and planning the meetings.
C.School will provide the names and information pertaining to relevant education
and training for all students enrolled in the education program at least four weeks before the
beginning date of the education program. School is responsible for supplying any additional
information required by Training Site as set forth in this Agreement, prior to the arrival of
students. School will notify Training Site in writing of any change or proposed change in a
student’s status.
D.School will obtain evidence of current immunizations against diphtheria, tetanus,
poliomyelitis, measles (rubeola), mumps, rubella (or a positive rubella titer), and of hepatitis B
immunity status, documented by a protective titer, for those students who will be in contact
with patients/clients. For each student born after 1956, School will maintain on file records of
positive titer or of post-1967 immunization for rubella and rubeola. At the time of immunization,
students with no history of exposure to chickenpox will be advised to get an immune titer.
School will require yearly PPD testing or follow-up as recommended if the students are PPD-
positive or have had BCG. School will provide information to Training Site regarding student
status concerning the above requirements.
E.School will assign to Training Site only those students who have satisfactorily
completed the prerequisite didactic portion of the curriculum and who have evidence of
completion of a CPR course based on American Heart Association or American Red Cross
guidelines and related to the age group(s) with whom they will be working.
F.School shall ask each student who may be placed in Training Site to obtain
his/her criminal history background record from the Washington State Patrol, pursuant to RCW
Affiliation Agreement
Page 3
43.43.834 and RCW 43.43.838, to release a copy of that record to the School, and to authorize
the School to transmit that record or copy thereof to Training Site. Before the start of training,
School will provide Training Site with the names of any students who have failed to provide the
requested records, or who refuse to authorize the release of records to Training Site. The
students will be informed that, whether or not they agree to obtain the record and agree to
release it to School and Training Site, Training Site may conduct the background inquiry
directly and the Training Site may refuse placement of a student who does not provide the
requested records or who has a record of prior criminal conduct.
Training Site understands and agrees that any information forwarded to it by School has been
procured through this process. School does not certify the veracity of the records provided
and, furthermore, the obligation to conduct appropriate background checks and the liability for
non-compliance therewith remains the responsibility of Training Site.
G.School will comply with and ensure to the extent possible that students comply
with the policies and procedures established by Training Site. School will notify each student
of his/her status and responsibilities pursuant to this Agreement.
H.School will encourage each student participating in the education program to
acquire comprehensive health and accident insurance that will provide continuous coverage of
such student during his or her participation in the education program. School will inform
students that they are responsible for their own health needs, health care costs, and health
insurance coverage.
III.TRAINING SITE’S RESPONSIBILITIES
A.Training Site will provide students with a desirable education experience within
the scope of services provided by Training Site. Training Site will designate in writing
Preceptors, if any, to be responsible for the education program, and will designate in writing
one person as the education Supervisor, who will maintain contact with the School-designated
Liaison to assure mutual participation in and review of the education program and student
progress. Training Site will submit in writing to School the professional and academic
credentials for the Preceptors and education Supervisor. Training Site will notify School in
writing of any change or proposed change of the Preceptors or education Supervisor.
B.Training Site will provide students with access to sources of information
necessary for the education program, within Training Site’s policies and procedures and
commensurate with patients’ rights, including library resources and reference materials.
C.Training Site will make available to students basic supplies and equipment
necessary for care of patients/clients and the education program. Within the limitation of
facilities, Training Site will make available office and conference space for students and, if
applicable, School faculty.
Affiliation Agreement
Page 4
D.Training Site will submit required reports on each student’s performance and will
provide an evaluation to School on forms provided by School.
E.Training Site retains full responsibility for the care of patients/clients, and will
maintain the quality of patient care without relying on the students’ training activities for staffing
purposes.
F.Training Site will have the right to take immediate temporary action to correct a
situation where a student’s actions endanger patient care. As soon as possible thereafter,
Training Site’s education Supervisor will notify School of the action taken. All final resolutions
of the student’s academic status in such situations will be made solely by School after
reviewing the matter and considering whatever written factual information Training Site
provides for School; however, Training Site reserves the right to terminate the use of its
facilities by a particular student where necessary to maintain its operation free of disruption
and to ensure quality of patient care.
G.On any day when a student is participating in the education program at its
facilities, Training Site will provide to such student necessary emergency health care or first aid
for accidents occurring in its facilities. The student will be responsible for the costs of any and
all care.
H.Except as provided in this Agreement, Training Site will have no obligation to
furnish medical or surgical care to any student.
IV.STUDENTS’ STATUS AND RESPONSIBILITIES
A.Students will have the status of learners and will not replace Training Site
personnel. Any service rendered by students is incidental to the educational purpose of the
education program.
B.Students are required to adhere to the standards, policies, and regulations of
Training Site during their education program.
C.Students will wear appropriate attire and name tags, and will conform to the
standards and practices established by School during their education program at Training Site.
D.Students assigned to Training Site will be and will remain students of School, and
will in no sense be considered employees of Training Site. Training Site does not and will not
assume any liability under any law relating to Worker’s Compensation on account of any
School student’s performing, receiving training, or traveling pursuant to this Agreement.
Students will not be entitled to any monetary or other remuneration for services performed by
them at Training Site, nor will Training Site otherwise have any monetary obligation to School
or its students by virtue of this Agreement.
Affiliation Agreement
Page 5
V.LIABILITY COVERAGE PROVISIONS
A.Each party to this Agreement shall be responsible for its own acts or omissions
and for those of its officers, employees, and agents. Neither party shall be responsible for the
acts or omissions of persons or entities not a party to this Agreement.
B.School, an agency of the State of Washington, warrants that it is self-insured
against liability claims in accordance with the risk management and tort claims statutes,
including chapter 4.92 RCW and RCW 43.19.760 et seq. The tort claims procedure, RCW
4.92.100 et seq., provides the fundamental remedy for all tort liability claims against School
and its officers, employees, and agents acting as such, and all such claims must be filed and
processed as provided therein. School shall make general liability insurance and medical
professional liability coverage available for purchase by its students. School shall provide
students who purchase insurance through it with proof of insurance. In addition, the limits of
the liability policy shall be at the minimum of One Million Dollars ($1,000,000) per occurrence
and Three Million Dollars ($3,000,000) in the aggregate per school annual aggregate.
Students shall provide Clinical Facility with proof of insurance prior to placement. Students will
not be accepted without proof of required insurance.
C.Training Site maintains commercial general liability insurance coverage with a
minimum of $1,000,000 per occurrence. Through that coverage, Training Site provides liability
coverage for its employees, officers, and agents in the performance of this Agreement, and
further provides the means for defense and payment of claims that may arise against such
individuals.
VI.TERM
A.This Agreement shall be effective as of the latest date shown below (Effective
Date) for a term of three (3) years ("Initial Term”), and shall renew every three years
commencing from the Effective Date; PROVIDED THAT the parties review this Agreement and
memorialize their intent to renew the Agreement for a subsequent three year period – such
renewal being memorialized prior to the expiration of the current three year term. There
shall be a maximum of two renewal periods. The Initial Term and any Renewal Term will be
collectively referred to herein as “Term”. School and Company will jointly plan student
placement in advance of each year’s beginning, taking into account the needs of the school for
clinical placement, maximum number of students for whom Company can provide a desirable
clinical education experience, and the needs of other disciplines or schools requesting clinical
placements.
B.This agreement may be canceled by written notice 60 days prior to termination;
however, such termination shall not become effective for the students then enrolled in the
education program if such termination prevents completion of their requirements for completion
of the education program.
Affiliation Agreement
Page 6
VII. PROVISIONS REGARDING BLOOD-BORNE PATHOGENS
A.School certifies that it has trained each student it sends to Training Site in
universal precautions and transmission of blood-borne pathogens and that it will send to
Training Site only students who have been trained in and have practiced using universal
precautions. School has recommended the Hepatitis B (HBV) screening to all education
program students before assignment to Training Site. Students may waive the HBV series, but
are required to have a TB screening and be up-to-date on all other immunizations. Training
Site will provide personal protection equipment that is appropriate for the tasks assigned to
School’s students.
B.In the event a student sustains a needle-stick injury or other substantial exposure
to bodily fluids of another or other potentially infectious material while participating in the
education program at Training Site, Training Site agrees to provide the following services:
•Emergency medical care following the injury;
•Initiation of HBV, Hepatitis C (HCV) and HIV protocol;
•HIV counseling and appropriate testing.
The student will be responsible for the costs of any and all care, testing, counseling, and
obtaining necessary follow-up care.
C.The source patient’s HBV, HCV and HIV status will be determined by Training
Site in the usual manner to the extent possible.
VIII.MISCELLANEOUS PROVISIONS
A.Entire Agreement. This Agreement constitutes the entire agreement between the
parties, and supersedes all prior oral or written agreements, commitments, or understandings
concerning the matters provided for herein.
B.Amendment. This Agreement may be modified only by a subsequent written
Agreement executed by the parties. The provisions in this Agreement may not be modified by
any attachment or letter agreement as described elsewhere in this Agreement.
C.Order of Precedence. Any conflict or inconsistency in this Agreement and its
attachments will be resolved by giving the documents precedence in the following order:
1.This Agreement;
2.Attachments to this Agreement in reverse chronological order.
D.Governing Law. The parties’ rights or obligations under this Agreement will be
construed in accordance with, and any claim or dispute relating thereto will be governed by,
the laws of the State of Washington.
Affiliation Agreement
Page 7
E.Notices. All notices, demands, requests, or other communications required to be
given or sent by School or Training Site, will be in writing and will be mailed by first-class mail,
postage prepaid, or transmitted by hand delivery or facsimile, addressed as follows:
(a)To School:
Central Washington University
400 E. University Way
Ellensburg, WA 98926-7480
(b)To Training Site:
City of Bremerton
911 Park Avenue
Bremerton, WA 98337
Each party may designate a change of address by notice in writing. All notices,
demands, requests, or communications that are not hand-delivered will be deemed received
three (3) days after deposit in the U.S. mail, postage prepaid; or upon confirmation of
successful facsimile transmission.
F.Survival. School and Training Site expressly intend and agree that the liability
coverage provisions of this Agreement will survive the termination of this Agreement for any
reason.
G.Severability. If any provision of this Agreement, or of any other agreement,
document or writing pursuant to or in connection with this Agreement, shall be held to be
wholly or partially invalid or unenforceable under applicable law, said provision will be
ineffective to that extent only, without in any way affecting the remaining parts or provisions of
said agreement.
H.Waiver. Neither the waiver by any of the parties hereto of a breach of or a
default under any of the provisions of this Agreement, nor the failure of either of the parties, on
one or more occasions, to enforce any of the provisions of this Agreement or to exercise any
right or privilege hereunder, will thereafter be construed as a waiver of any subsequent breach
or default of a similar nature, or as a waiver of any of such provisions, rights or privileges
hereunder.
I.Inspection. Training Site will permit, on reasonable notice and request, the
inspection of clinical and related facilities by agencies charged with responsibility for
accreditation of School.
Affiliation Agreement
Page 8
J.HIPAA. School voluntarily provides students with training on the requirements of the
Health Insurance Portability and Accountability Act (HIPAA). Training Site will provide
additional training on Training Site’s specific HIPAA policies and procedures. School will direct
its students and faculty to comply with the policies and procedures of Training Site. No
protected healthcare information (PHI) is anticipated to be exchanged between Training Site
and School. Solely for the purpose of defining students’ role in relation to the use and
disclosure of Training Site’s PHI, students acting pursuant to this Agreement are defined as
members of Training Site’s workforce. However, School’s students and faculty shall not be
considered to be employees of Training Site.
CENTRAL WASHINGTON UNIVERSITY CITY OF BREMERTON
By: By:
Title: Title:
Date: Date: LH 6/1/21
AGENDA BILL
CITY OF BREMERTON
CITY COUNCIL
SUBJECT: Study Session Date: June 9, 2021
Professional Services Agreement with
Systems Design West, LLC for Ambulance
Billing Service
COUNCIL MEETING Date: June 16, 2021
Department: Fire
Presenter: Pat McGanney, Fire Chief
Phone: (360) 473-5380
SUMMARY: This is an agreement between the City of Bremerton and Systems Design West, LLC to
provide ambulance billing service. The original agreement was in 1999, last renewed in 2017
(Contract #5769). The compensation will increase from $21.50 to $22.50 per transport starting
January 1, 2022.
ATTACHMENTS: Professional Services Agreement
FISCAL IMPACTS (Include Budgeted Amount): (Include Budgeted Amount): $38,900 for the
2022 budget. No change to the 2021 budget of $36,900.
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 Systems Design West, LLC; 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
AGENDA BILL
CITY OF BREMERTON
CITY COUNCIL
SUBJECT: Interlocal Agreement with South
Puget Sound Fire Coordinating Group or
Wildfire Personnel Training and Certification
Study Session Date: June 9, 2021
COUNCIL MEETING Date: June 16, 2021
Department: Fire
Presenter: Pat McGanney, Chief
Phone: (360) 473-5380
SUMMARY: This agreement is between the City of Bremerton and the South Puget Sound Fire
Coordinating Group, for wildfire personnel training and certification.
ATTACHMENTS: South Puget Sound Fire Coordinating Group Interlocal Agreement
FISCAL IMPACTS (Include Budgeted Amount): There is no financial impact
STUDY SESSION AGENDA: ☒ Limited Presentation ☐ Full Presentation
STUDY SESSION ACTION: ☐ Consent Agenda ☐ General Business ☐ Public Hearing
RECOMMENDED MOTION:
Move to approve the South Puget Sound Fire Coordinating Group Interlocal Agreement with the City
of Bremerton; and authorize the Mayor to finalize and execute the agreement with substantially the
same terms and conditions as presented.
COUNCIL ACTION: Approve Deny Table Continue No Action
Form Updated 01/02/2018
B9
AGENDA BILL
CITY OF BREMERTON
CITY COUNCIL
SUBJECT: Study Session Date: June 9, 2021
Ordinance amending Sections 1.02.020 and
2.50.040(b) of the Bremerton Municipal
Code, establishing Juneteenth as a legal
holiday for the City of Bremerton
COUNCIL MEETING Date: June 16, 2021
Department: Executive
Presenter: Mayor Greg Wheeler
Phone: (360) 473-5266
SUMMARY: Washington State Legislature recently passed House Bill 1016, effective July 25, 2021,
establishing the nineteenth day of June, recognized as Juneteenth, as a state legal holiday in
remembrance for the day news of the Emancipation Proclamation and the end of the Civil War
reached Galveston, Texas and all enslaved persons were released from bondage. In order to
recognize this day, the City Council desires to amend the Bremerton Municipal Code to establish
Juneteenth as a legal holiday for the City.
ATTACHMENTS:
Proposed Ordinance
FISCAL IMPACTS (Include Budgeted Amount): One additional holiday for all regular full-time and
regular part-time employees.
STUDY SESSION AGENDA: ☒ Limited Presentation ☐ Full Presentation
STUDY SESSION ACTION: ☐ Consent Agenda ☐ General Business ☐ Public Hearing
RECOMMENDED MOTION:
Move to approve Ordinance No. ____ establishing Juneteenth as a legal City holiday.
COUNCIL ACTION: Approve Deny Table Continue No Action
Form Updated 01/02/2018
B10
Page 1 of 3
Juneteenth
ORDINANCE NO. ________
AN ORDINANCE of the City Council of the City of
Bremerton, Washington, amending Section 1.02.020 of the
Bremerton Municipal Code entitled “Legal Holidays” and
Subsection 2.50.040(b) of the Bremerton Municipal Code entitled
“Holiday Time,” to establish Juneteenth as a legal holiday for the
City.
WHEREAS, the State Legislature recently passed House Bill 1016, effective July
25, 2021, establishing the nineteenth day of June, recognized as Juneteenth, as a state legal
holiday in remembrance for the day news of the Emancipation Proclamation and the end of the
Civil War reached Galveston, Texas and all enslaved persons were released from bondage; and
WHEREAS, in order to recognize this day, the City Council desires to amend
provisions of the Bremerton Municipal Code to establish Juneteenth as a legal holiday for the
City; NOW THEREFORE,
THE CITY COUNCIL OF THE CITY OF BREMERTON, WASHINGTON,
DOES HEREBY ORDAIN AS FOLLOWS:
SECTION 1. Section 1.02.020 of the Bremerton Municipal Code entitled "Legal
Holidays" is hereby amended to read as follows:
1.02.020 LEGAL HOLIDAYS
(a) The following holidays are adopted as legal holidays for the City: The first day of
January (New Year’s Day); the third Monday of January (Martin Luther King, Jr.’s Birthday);
the third Monday of February (President’s Day); the last Monday of May (Memorial Day); the
nineteenth day of June (Juneteenth); the fourth day of July (Independence Day); the first Monday
in September (Labor Day); the eleventh day in November (Veteran’s Day); the fourth Thursday
and Friday in November (Thanksgiving holiday); the twenty-fifth day of December (Christmas
Day); and any other day designated by public proclamation of the Chief Executive of the State as
a legal holiday or as a day of thanksgiving.
(b) Whenever a legal holiday falls upon a Sunday, the following Monday shall be a
legal holiday, and whenever any legal holiday falls upon a Saturday, the preceding Friday shall
be a legal holiday.
SECTION 2. Subsection 2.50.040(b) of the Bremerton Municipal Code entitled
“Holiday Time” is hereby amended to read as follows:
(b) Holiday Time. Managers and professional staff shall receive a full day of time off
without loss of compensation for each holiday observed by the City on the day the City observes
the holiday and one additional floating holiday. Holidays observed by the City are:
New Year’s Day
Martin Luther King’s Birthday
Page 2 of 3
Juneteenth
President’s Day
Memorial Day
Juneteenth
Independence Day
Labor Day
Veteran’s Day
Thanksgiving Day
Day after Thanksgiving
Christmas
In addition, similar time off without loss of compensation is granted for any other holiday
which the City Council takes specific official action to observe.
SECTION 3. Juneteenth – Effective Date. Consistent with House Bill 1016,
Juneteenth shall first be recognized as a City holiday June 19, 2022.
SECTION 4. Corrections. The City Clerk and codifiers of this ordinance are
authorized to make necessary corrections to this ordinance including, but not limited to, the
correction of scrivener, clerical, typographical, and spelling errors, references, ordinance
numbering, section/subsection numbers and any references thereto.
SECTION 5. Severability. If any one or more sections, subsections, or
sentences of this ordinance are held to be unconstitutional or invalid, such decision shall not
affect the validity of the remaining portion of this ordinance and the same shall remain in full
force and effect.
SECTION 6. Effective Date. This ordinance shall take effect and be in force ten
(10) days from and after its passage, approval and publication as provided by law.
PASSED by the City Council the___________ day of ____________________, 2021.
_________________________________
KEVIN GORMAN, Council President
Approved this ________ day of ________________________, 2021.
_________________________________
GREG WHEELER, Mayor
Page 3 of 3
Juneteenth
ATTEST: APPROVED AS TO FORM:
__________________________________ _________________________________
ANGELA HOOVER, City Clerk ROGER A. LUBOVICH, City Attorney
PUBLISHED the ________ day of ______________________, 2021.
EFFECTIVE the ________ day of ______________________, 2021.
ORDINANCE NO. ________.
R:\Legal\Legal\Ordinances\Executive\2021.05.24 Ordinance - Juneteenth - Final 5-28-21.docx
From:Jim McDonald
To:City Council
Subject:June 19th
Date:Tuesday, June 8, 2021 8:58:45 PM
CAUTION: This email originated from outside of the organization. Do not click links or open attachments unless
you recognize the sender and know the content is safe.
Dear Council Members,
While I support the creation of June 19th as a National Holiday or even a State
Holiday. I do not support this effort at the City level.
The Council should focus their efforts on lobbying our State and Federal elected
officials instead of taking unilateral action.
If the City stands alone, it will have no meaning. People will wonder why the City
offices are closed when everyone else in the City, County, and State are open.
R, Jim McDonald
Bremerton