Loading...
HomeMy WebLinkAbout08/11/2021 STUDY SESSION AGENDA PACKET______________________________________________________________ CITY COUNCIL 345 6th Street, Suite 100, Bremerton, WA 98337 Phone (360) 473-5280 WEDNESDAY, AUGUST 11, 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 August 18, 2021 City Council Meeting Agenda… Members of the public are invited to join the Zoom webinar by clicking on the following link: https://us02web.zoom.us/j/85076869671?pwd=ZjZBUUJ5eWkzM0VhRjIxVnRDNW1YZz09 Or iPhone one-tap: US: +12532158782,,85076869671#,,,,*209823# or +16699006833,,85076869671#,,,,*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 +1 301 715 8592 Webinar ID: 850 7686 9671 Passcode: 209823 Public questions or comments may be submitted ahead of time to City.Council@ci.bremerton.wa.us A.BRIEFINGS ON AGENDA BILL ITEMS 1.Confirm Appointment of Thomas Wolfe to the Position of Chief of Police 2.Contract with Chinook Properties Inc. for the Construction of the Reservoir 4 Fencing and Security Improvements Project; and related Budget Adjustment 3.Ordinance amending Title 15 of the Bremerton Municipal Code entitled “Municipal Utilities” B.INFORMATION ONLY 1.Briefing on Lodging Tax Advisory Committee (LTAC) Grant Application Rating Criteria and Process for Distribution of Funds for 2022 – Chair Michael Goodnow C.GENERAL COUNCIL BUSINESS Audit Committee Monthly Briefing – Chair Leslie Daugs Other General Council Business D.ADJOURNMENT OF STUDY SESSION E.EXEMPT CLOSED SESSION A.As allowed under RCW 42.30.140 (4) (b) to discuss Labor Negotiations; No action anticipated… AGENDA BILL CITY OF BREMERTON CITY COUNCIL SUBJECT: Confirm Appointment of Thomas Wolfe to the Position of Chief of Police Study Session Date: August 11, 2021 COUNCIL MEETING Date: August 18, 2021 Department: Executive Presenter: Mayor Wheeler Phone: (360) 473-5266 SUMMARY: Approval of the attached Employment Contract with Thomas Wolfe confirms his appointment as Chief of Police. Pursuant to Section 21 of the City Charter and Section 2.19.020 of the Bremerton Municipal Code, the Chief of Police shall be appointed by the Mayor, subject to confirmation by the City Council. Employee is currently serving as Interim Chief of the Police Department and the Mayor desires to officially appoint him to the position of Chief of Police. BMC 2.50.034 authorizes adjustments to benefits established for professional and management employees pursuant to an employment contract approved by the City Council. ATTACHMENTS: 1) Employment Contract; and 2) 2021 Management, Professional, Confidential & Fiduciary Salary Plan FISCAL IMPACTS (Include Budgeted Amount): There are sufficient funds in the 2021 budget to cover the cost of this Contract. STUDY SESSION AGENDA: ☒ Limited Presentation ☐ Full Presentation STUDY SESSION ACTION: ☐ Consent Agenda ☐ General Business ☐ Public Hearing ☒ Pulled RECOMMENDED MOTION: Move to confirm the appointment of Thomas Wolfe to the position of Chief of Police; and authorize the Mayor to finalize and execute the Employment Contract with substantially the same terms and conditions as presented. COUNCIL ACTION: Approve Deny Table Continue No Action Form Updated 01/02/2018 A1 Page 1 EMPLOYMENT CONTRACT CHIEF OF POLICE THIS EMPLOYMENT CONTRACT (“Contract”) is made and entered into by and between the City of Bremerton, Washington, a chartered first class municipal corporation organized under the laws of the State of Washington (“City”), and Thomas Wolfe (“Employee”). RECITALS WHEREAS, Pursuant to Section 21 of the City Charter and Section 2.19.020 of the Bremerton Municipal Code (“BMC”), the Chief of Police shall be appointed by the Mayor, subject to confirmation by the City Council; and WHEREAS, Employee is currently serving as Interim Chief of the Police Department and the City desires to officially appoint Employee as Chief of Police of the Department consistent with the laws of the State of Washington and the ordinances and policies of the City; and WHEREAS, The City agrees to provide the same compensation and benefits that the Employee receives as a Captain plus a 10% increase in salary in order to establish fair compensation and benefits as well as internal equity in transferring from the position of Captain to Chief of Police; and WHEREAS, BMC 2.50.034 authorizes adjustments to benefits established for professional and management employees pursuant to an employment contract approved by the City Council; and WHEREAS, The City also desires to establish certain conditions of employment and set the general working conditions for Employee; and WHEREAS, Employee agrees to accept the position of Chief of Police of the Police Department for the City in accordance with the terms and conditions of this Contract, City ordinances, Police Department Standard Operating Procedures and the City Human Resources Policies, as the same may be amended from time to time (“Policies”), subject to the provisions of Section 11; NOW, THEREFORE, in consideration of the mutual covenants herein contained the parties agree as follows: SECTION 1. EMPLOYMENT AND DUTIES A. The City agrees to employ the services of Employee as Chief of Police of the City’s Police Department (“Department”). The Employee agrees to furnish full time services as defined in the job description for Chief of Police, which is attached and hereby incorporated as a part of Page 2 this Contract, which may be amended by the City upon thirty (30) days’ notice to the Employee. B. The parties understand and agree that the Employee will perform independent functions and responsibilities in the exercise of his field of work. C. Employee agrees to accept employment and act as Chief of Police for the City and to perform his duties to the best of his ability in accordance with the highest professional and ethical standards of the profession and shall comply with all general rules and regulations established by the State of Washington and the City. D. Employee shall not engage in any activity that is, or may become, a conflict of interest, as defined by Washington law, or would be incompatible with the position of Chief of Police, or enter into a prohibited contract, as defined by Washington law. SECTION 2. POSITION AND TERM A. This Contract shall be effective the day after it is approved by City Council and shall remain in full force and effect until terminated as provided in Section 6 of this Contract. Employee is an “at-will” employee of the City and shall report to and serve at the pleasure of the Mayor. B. The Employee acknowledges, understands and agrees that the position he is accepting with the City is a management/professional position as defined under Chapter 2.50 BMC and is exempt from Union Membership. It is expressly understood by and between the parties that the position of Chief of Police is an exempt position pursuant to the Fair Labor Standards Act. Even though the position Employee is accepting with the City is a management/professional position, Employee will receive the compensation and benefits he received as Captain pursuant to the Bremerton Police Management Association collective bargaining agreement as set forth in Sections 3 and 4 below. C. The Employee further acknowledges, understands and agrees that the position he is accepting with the City is not included in the City’s Civil Service system and that he will not be covered by the Civil Service system applicable to the Department under RCW 42.12 and BMC 2.19.020. Employee shall not be entitled to any of the procedural or substantive protections afforded civil service employees, but the employment relationship between the City and Employee shall be at will and governed by the terms of this Contract. D. Nothing in this Contract shall prevent, limit or otherwise interfere with the City’s right to terminate this Contract, with or without cause, at any time, subject only to the provisions set forth in Section 6 of this Contract, the laws of the State of Washington, City ordinances, and City Polices. E. Nothing in this Contract shall prevent, limit or otherwise interfere with the right of the Employee to resign and terminate this Contract at any time, subject only to the provisions set forth in Section 6 of this Contract. Page 3 F. So long as this Contract remains in effect, Employee agrees to remain in the exclusive employment of City and shall neither accept other employment nor become employed by any other City without the prior written approval of the Mayor. The term “employed” and derivations of that term as used in the preceding sentence shall include employment by another legal entity or self-employment, but shall not be construed to include occasional teaching, writing, consulting or military reserve service performed on Employee’s own time, and with the advance approval of the Mayor. SECTION 3. COMPENSATION A. The Employee and City agree that compensation for services rendered under this contract shall begin at Step 5 of the Police Management pay schedule, plus 9% longevity and a 10% increase in salary for Chief’s pay, with an annual rate of approximately One Hundred Seventy-Six Thousand, Three Hundred Seventy-Two Dollars, and Six Cents ($176,372.06). B. The parties agree that Employee shall receive the same cost-of-living adjustment (if any) that applies to the Bremerton Police Management Association collective bargaining agreement. SECTION 4. BENEFITS A. Medical. Employee shall participate in the City’s health benefit (medical, dental, vision, employee assistance) plans in accordance with the terms then applicable to other non - represented employees pursuant to BMC 2.50.070. B. Life Insurance. The City shall pay one hundred percent (100%) of the premium for term life insurance in the amount of Two Hundred Thousand Dollars ($200,000.00). The Employee shall name the beneficiary(ies) of said term life insurance. C. Disability Insurance. The City shall provide long-term disability insurance for Employee with terms equivalent to that which applies to Bremerton Police Management Association employees. D. City Vehicle. Employee shall have the use of a Police Department vehicle. In the event that Employee uses his own vehicle for City business-related trips, the City shall reimburse Employee for such use in accordance with the then-current IRS approved mileage rate. E. Additional Benefits. Employee shall receive certain benefits as provided pursuant to the Bremerton Police Management Association collective bargaining agreement, in lieu of similar benefits, if any, provided to Professional and Management employees, as follows: 1. Education pay; 2. Management Certification pay; 3. HRA/VEBA contribution; 4. Sick leave accrual, carry-over and cash out; and 5. Vacation accrual, carry-over and cash out. Page 4 F. Furlough Program. Notwithstanding the terms of this Contract that describes the Employee’s salary, the Employee shall participate in any furlough program that applies, from time to time, to City non-represented employees. SECTION 5. RETIREMENT AND DEFERRED COMPENSATION PLANS A. Employee shall be enrolled in the Law Enforcement and Fire Fighters Plan of Washington (“LEOFF”). The City shall make all legally required City contributions for Employee’s participation in said system, and Employee shall be responsible for paying all legally required employee contributions for Employee’s participation in said retirement system. B. In addition to City’s payment to LEOFF described above, City shall pay an amount equal to five and one-half (5.5%) percent of Captain’s Step 5 annual base salary into an Internal Revenue Code Section 457 plan or similar deferred compensation program to be paid by the City in accordance with the City’s normal payroll schedule. SECTION 6. RESIGNATION, TERMINATION AND SEVERANCE PAY A. Employee’s employment with the City may be terminated (separated from employment) as follows: 1. Without Cause. The Employee is an “at will” employee and the City may terminate his employment with the City without cause, at any time, with thirty (30) days’ notice pursuant to BMC 2.50.090. If terminated without cause, Employee shall receive three (3) months’ severance pay pursuant to BMC 2.50.090. 2. For Cause. The Employee may be terminated from employment with the City for cause, without notice, and Employee understands, agrees and accepts that no severance pay shall be paid. 3. By Employee. In the event that the Employee shall terminate his employment with the City, he agrees that he shall provide the City not less than thirty (30) days’ prior notice of the effective date of said termination in order to afford the City a reasonable opportunity to find a replacement. The parties further agree that in the event a replacement is found who is able to commence employment prior to the expiration of thirty (30) days’ notice, that they may, in good faith, negotiate an earlier termination date. B. The following reasons shall constitute grounds to terminate this Contract with “Cause” and without payment of the severance provided in Subsection 6.A.2 above: 1. A material breach of this Contract or the repeated neglect by Employee to perform the duties Employee is required to perform under this Contract, either of which continues after written notice and a 30-day cure period, or which occurs within one year following a prior written notice and cure opportunity under this Subsection 6.B.1; Page 5 2. Conviction of any criminal act relating to employment with the City or otherwise involving dishonesty, moral turpitude or physical violence; 3. Conduct, relating to City employment, which, while not criminal in nature, violates the City Policies or other reasonable standards of professional and personal conduct in some substantial manner injurious to the business or reputation of the City; 4. Conviction of any felony offense; 5. Mental or physical unfitness that prevents the Employee from carrying out the essential functions and/or duties of the position of Chief of Police; and 6. Loss of law enforcement commission. C. As a condition to eligibility to receive any severance benefits under this Section 6, the Employee shall sign, as of the date immediately following his separation and in a form provided by the City, a legal release of any and all claims of any kind against the City (except for earned and unpaid wages and benefits as of the termination date, and except for severance benefits hereunder and COBRA benefits), and agreeing neither to bring any litigation nor to make any written or oral communications that are harmful to the reputation of the City or any elected or unelected official or employee of the City. D. It is understood that after notice of termination or resignation in any form, Employee and the City will cooperate to provide for an orderly transition. Specific responsibilities during such transition will be specified in a written separation agreement. If Employee is involuntarily terminated by City for reasons that have the potential to adversely impact Employee’s professional reputation if made public, Employee may request, and if requested, Employee shall be given an opportunity for a name clearing hearing with the Mayor. E. This Contract shall be terminated upon the death or permanent disability of the Employee, which for the purposes of this Contract shall mean that Employee is incapacitated and unable to perform his essential duties, with or without reasonable accommodation, for at least the period of time prescribed by the terms of the Long-Term Disability benefit plan that then covers him. SECTION 7. FLEXIBLE HOURS OF WORK It is recognized that Employee must devote a great deal of time outside the normal office hours on business for City, and to that end Employee shall be allowed to establish an appropriate work schedule that allows time away from the office during normal office hours. It is expected that Employee will work at least forty (40) hours per week. The parties recognize that Employee will be exempt from the provisions relating to overtime payment and compensatory time under the Fair Labor Standards Act. Page 6 SECTION 8. PERFORMANCE EVALUATION The City shall review and evaluate the performance of Employee on an annual basis. Performance evaluations shall be conducted by the Mayor. Employee shall be provided with a written copy of the evaluation. SECTION 9. PROFESSIONAL DEVELOPMENT The City shall budget and pay for the professional dues and subscriptions of Employee and associated costs (including travel, lodging and meal expenses) reasonably necessary for his continuation and full participation in regional, state and local associations and organizations that are necessary and desirable for his continued professional participation, growth and advancement to better serve the interests of the City. SECTION 10. CIVIC INVOLVEMENT City recognizes the desirability of representation in and before local and regional civil and other organizations, and Employee is authorized to become a member of such civic clubs or organizations he deems necessary or desirable in order to maintain awareness of community attitudes and ideas. City shall pay all expenses for membership and participation in up to three such Bremerton organizations. Employee shall report to City on each membership that he has taken out at City’s expense. SECTION 11. OTHER TERMS AND CONDITIONS OF EMPLOYMENT A. All provisions of City ordinances, regulations, rules and City Policies as they now exist or hereafter may be amended, shall also apply to Employee as they would to other employees of the City, except as may be specifically agreed upon herein. B. If any term of this Contract differs from City Policies, the terms of this Contract shall take precedence. SECTION 12. MISCELLANEOUS PROVISIONS A. Paragraph Headings. The headings in this Contract are inserted for convenience and identification only and are in no way intended to describe, interpret, define or limit the scope, extent or intent of this Contract or any of the provisions of the Contract. B. Provisions Severable. Every provision of this Contract is intended to be severable. If any term or provision hereof is illegal or invalid for any reason whatsoever, such illegality or invalidity shall not affect the validity of the remainder of this Contract. C. Rights and Remedies. The rights and remedies provided in this Contract are cumulative, and the use of any one right or remedy by any party shall not preclude nor waive its rights to use any or all other remedies. Any rights provided to the parties under this Contract are given in addition to any other rights the parties may have by law, statute, ordinance or otherwise. Page 7 D. Entire Agreement. This Contract constitutes the entire agreement between the parties and both parties acknowledge that there are no other agreements, written or oral, that have not been fully set forth in the text of this Contract. E. Governing Law and Dispute Resolution. This Contract shall be construed in accordance with the laws of the State of Washington. Venue for any dispute arising hereunder shall be in Kitsap County Superior Court. However, before any lawsuit may be filed by either party, the Employee and City must agree to engage in non-binding mediation, in which the expense of the mediator will be paid by the City. Other than the cost of the mediator, each party shall bear its own expenses and attorney fees in any dispute, including mediation or litigation. F. Preparation of Contract. No presumption shall exist in favor of or against any party to this Contract as a result of the drafting and preparation of this document. G. No Waiver. No waiver of any breach by either party of the terms of this Contract shall be deemed a waiver of any subsequent breach of the Contract. H. Counterparts. This Contract may be executed simultaneously in one or more counterparts, each of which shall be deemed an original, but all of which together shall constitute one and the same document. I. Amendment. No amendment of this Contract shall be effective unless the amendment is in writing, signed by each of the parties. J. Notices. All notices and demands of any kind which either party hereby may be required or desires to serve upon the other party under the terms of this Contract shall be in writing and shall be served upon such other party by personal service, or by leaving a copy of such notice or demand at the address hereinafter set forth, whereupon service shall be deemed complete, or by mailing a copy thereof by certified or regular mail, airmail if the address is outside the state in which the same is mailed, postage prepaid, with return receipt requested, addressed as follows: City: Employee: City of Bremerton Thomas Wolfe c/o Human Resources Use the address on file with 345 6th Street, Suite 100 City of Bremerton Office of Human Bremerton, WA 98337 Resources In case of service by mail, it shall be deemed complete on the day of actual delivery as shown on the addressee’s registry of certification receipt or at the expiration of the third day after the date of mailing, whichever first occurs. The addresses to which notices and demands shall be delivered or sent may be changed from time to time by notice served as hereinabove provided by either party upon the other party. Page 8 K. Appropriations. No commitment of public funds will be made prior to the approval of this Contract. The terms of this Contract are contingent upon sufficient appropriations being made by the City Council for the performance of this Contract. If sufficient appropriations are not made, this Contract shall terminate subject to the conditions subsequent concerning notice and severance payment being given by the City to Employee as provided in Section 6 of this Contract. Termination pursuant to the terms of this Contract shall not result in any claim for payment or damages by Employee or the City. The City’s decision as to whether sufficient appropriations are available shall be accepted by Employee and shall be final. IN WITNESS WHEREOF, this agreement is entered into on the dated fully executed below. CITY OF BREMERTON EMPLOYEE By___________________________ By___________________________ Greg Wheeler, Mayor Thomas Wolfe Date: Date: APPROVED AS TO FORM: ATTEST: Kylie Finnell, City Attorney Angela Hoover, City Clerk From: To: Subject: Date: Faye Flemister City Council Letter of Support - Police Chief Monday, August 9, 2021 7:06 PM Hello Mayor Wheeler and City Council and staff. I am emailing this letter in support of Mayor Wheeler's proposed appointment of Thomas Wolfe to the position of Chief of Police. We are all going through very difficult times right now and in my opinion ,anything we can do to bring us all closer to some sense of normalcy is imperative to our continued success as a community. It is clear that Mr Wolfe is willing to remain employed in the police department and face all the many challenges and uncertain times as the police chief for the City of Bremerton. Mr Wolfe has served for years and has developed relationships and partnerships with our community and leadership within it. I ask that you approve Mr Wolfe's appointment to the position of Police Chief of Bremerton. Thank you for your consideration. Faye Flemister Owner/Unique Experience From:trent l. To:City Council Subject:Urging The City Council Members to Vote NO On Captain Wolfe Date:Tuesday, August 10, 2021 2:16:47 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. As a constituent of both Council members - District 3 council President Gorman District 6 councilman Mike Simpson I urge both specifically in the District of #3 Kevin Gorman, to Vote NO on the appointment of Interim Police Captain Wolfe. As he was appointed by the Mayor, Wheeler. The Mayor has shown he cannot be impartial, and he just Promotes from within. Regardless of issues in our community, to racial profiling and discrimination. Primarily, the case regarding Dr. Bolton and racial profiling cases and even those reports and criminal infraction reports handed by Police staff. Furthermore, the entire chain of command is far from diverse, as is the workforce of known 60 police Personnel. I demand that we allow more time for a more adequate choice or choices to be selected from than this appointment. Thank you Mr. Long Associate Ministers: Christian Education Vice Chair – Sis. Linda Yerger Outreach Ministry Chair – Sis. Sibylle Palmer Minister Jeffery Flood Deacon Board Chairman – Deacon Michael Gordon Sunday School Vice Supt. – Minister Jeffery Flood Minister Arneter Johnson Financial Secretary (Asst.) – Sis. Doris Zellers Treasurer – Sis. Barbara Wooten Minister David Stewart Laymen’s Ministry Chair (Interim) – Deacon David McClain Trustee Board Pres. (Interim) –Bro. Earl Willis Minister Kenneth Riley Minister of Music – Sis. Betty Randle Hayes Usher Board President – Bro. Eric McAllister Choir Pastor Emeritus Sam Rachal, Jr. Moderator – Deacon William Cox Women’s Ministry Pres. – Sis. Jessie Hornbeak Church Leadership: Mother’s Board President – Mother Joyce Flood Announcement Clerk – Sis. Sherry Willis Newsletter Editor – Sis. Linda Yerger Youth Ministry Chair / Jr. Church – Sis. Jacquie Curry Church Secretary – Sis. Tazsjah Green August 6, 2021 To: Our Honorable Mayor and Prestigious City Council Members As the organizer of Police and Community Together (PACT) that brings community members and law enforcement agents together, I am writing this letter in support of Tom Wolf. Tom Wolf has been a part of the social support for community policing for over 10 years. During that time, we have seen a proactive change in succession planning to build positive relationships with community and the Bremerton Police Department. Under the leadership of Chief Steve Strachan, I observed how Tom caught the vision and become involved with building effective relationships with youth and community members by learning names and showing up for community functions. When Jim Burchett became Chief and followed the example of his mentor WASPC Executive Director Steve there was a smooth transition that kept the commitment to community policing. Captain Tom Wolf’s leadership played a critical role in keeping community informed and connected as he supported the new Chief. It is with great enthusiasm I give Tom Wolf my fullest support to become the next Chief of the Bremerton Police Department. BPD has started a model in Kitsap County where police and community have a shared responsibility to keep the peace and Tom Wolf is committed to the process. Very Respectfully; Richmond Johnson, Pastor Partnering for Youth Achievement (PYA), Executive Director Mt. Zion Missionary Baptist Church Pastor Richmond A. Johnson 1906 13th Street - Bremerton, WA 98337 Phone: (360) 377-9169 / Fax: (360) 377-0260 E-mail: mtzionmbc@telebyte.com Website: http://mountzionbremerton.org “To Know Christ and To Make Him Known” From:Laurie Shaw To:City Council Subject:Appointment of Police Chief Date:Wednesday, August 11, 2021 9:57:47 AM 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 City Council members, I am writing in full support of confirmation of Tom Wolfe as the police chief for Bremerton. I have known Tom for more than 10 years. He served as a volunteer coach with me for 5 years, and in that capacity I have seen him deal with people from all walks of life, from all socioeconomic backgrounds, with care and compassion. He is a natural and charismatic leader and people are naturally drawn to him. His long tenure with the department is a testament to his commitment to the department and the city. I respectfully request that you confirm his appointment unanimously at tonight's council meeting. Laurel Shaw Cherry Ave 98310 Sent from my T-Mobile 5G Device From:Darryl Riley To:City Council Subject:Appointment of Tom Wolfe to chief Date:Wednesday, August 11, 2021 4:51:37 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. Good afternoon, I strongly support the appointment of Tom Wolfe as chief. During times like these, the Bremerton Police Dept needs continuity more than anything else. Tom Wolfe provides that. With all of the changes coming to law enforcement policies, practices, and procedures, he's best to lead our Police Dept forward. He sees that policing needs to be different, and understands the racial tensions that have plagued the country. I believe he has a pulse on this city, and he knows the community. The Bremerton Police Dept took a chance on this guy a long time ago, and he's proven to be deserving of it. I think he deserves this appointment as well. Best Regards Darryl Riley Black Business Owner/Community leader Sent from Yahoo Mail on Android From:David Horton To:City Council Subject:Bremerton Police Chief Appointment Date:Wednesday, August 11, 2021 3:38:08 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 Councilmembers: I write to express my support for your confirmation of Tom Wolfe as the next Chief of Police. I have known Tom for about twenty years and think very highly of his abilities and judgment. I have been an assistant city attorney for Bremerton and outside counsel for almost 20 years. During that time, I worked closely with Tom and grew to appreciate his judgment, kindness and ability as a leader. (I am a former Marine officer and take leadership seriously). I have defended the City and individual police officers from civil rights lawsuits. That experience, coupled with my knowledge of Tom tell me he is the right man for the job. I reside in the City of Bremerton (128 Blackfish Court) and am happy my City is looking to proven local leaders to fill positions. Thank you for your consideration. David P. Horton 3212 NW Byron Street, Suite 101 Silverdale, WA 98383 dhorton@kitsaplawgroup.com kitsaplawgroup.com AGENDA BILL CITY OF BREMERTON CITY COUNCIL SUBJECT: Study Session Date: August 11, 2021 Contract with Chinook Properties Inc. for the Construction of the Reservoir 4 Fencing and Security Improvements Project; and related Budget Adjustment COUNCIL MEETING Date: August 18, 2021 Department: PW & U Presenter: K. Ketterer Phone: (360) 473-5334 SUMMARY: The Reservoir 4 site contains multiple critical assets of the Water Utility that are now in close physical and visual proximity to surrounding development. A recent security vulnerability assessment recommended several physical and electronic access control improvements to include fencing, gates, and enhanced software-based access control and intrusion detection. The security enhancements proposed exceed those originally scoped in the budget for this project. A budget adjustment to the Water Utility Capital Fund of $265,000 is requested to complete the project. Chinook Properties Inc. is a local contractor from Silverdale and their bid of $375,881.05 was the lowest responsible and responsive bid for the project. We recommend that the Council award the contract to Chinook Properties. ATTACHMENTS: 1) Contract; and 2) Power Point Presentation Added FISCAL IMPACTS (Include Budgeted Amount): The project is budgeted in the Water Utility Capital fund for $250,000. The cost of construction exceeds the budgeted amount and a budget adjustment of $265,000 from Water Utility Capital fund balance is requested to complete the project. STUDY SESSION AGENDA: ☐ Limited Presentation ☐ Full Presentation STUDY SESSION ACTION: ☐ Consent Agenda ☐ General Business ☐ Public Hearing RECOMMENDED MOTION: Move to award the Reservoir 4 Fencing and Security Improvements contract to Chinook Properties in the amount of $375,881.05 and authorize the Mayor to finalize and execute the agreement with substantially the same terms and conditions as presented; and to approve a budget adjustment to the Water Utility Capital Fund for the purpose of constructing the Reservoir 4 Fencing and Security Improvements project in the amount of $265,000 from existing Water Utility Capital reserves. COUNCIL ACTION: Approve Deny Table Continue No Action Form Updated 01/02/2018 A2 Updated City of Bremerton 233-1896-177 Reservoir 4 Fencing and Security Improvements I-35 May 2021 Contract Documents – Bid Set Contract CONTRACT (Page 1 of 4) THIS AGREEMENT is dated the day of in the year 20___, by and between the City of Bremerton (hereinafter called CITY) and (hereinafter called CONTRACTOR). CITY and CONTRACTOR, in consideration of the mutual covenants hereinafter set forth, agree as follows: ARTICLE 1. WORK. CONTRACTOR shall complete the WORK as specified or indicated in the CITY’s Contract Documents entitled Reservoir 4 Fencing and Security Improvements. ARTICLE 2. CONTRACT TIMES. The WORK shall obtain Physical Completion within 30 working days after the commencement date stated in the Notice to Proceed. Time is of the essence as to each and every deadline set forth in this agreement. This provision has been specifically negotiated. ARTICLE 3. LIQUIDATED DAMAGES. CITY and the CONTRACTOR recognize that time is of the essence for this Agreement and that the CITY will suffer financial loss if the WORK is not completed within the time specified in Article 2 herein, plus any extensions thereof allowed in accordance with Section 1-08.9 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 determined under Special Provisions Section 1-08.9 per day after the date of Physical Completion for each phase. ARTICLE 4. CONTRACT PRICE. CITY shall pay CONTRACTOR for completion of the WORK in accordance with the Contract Documents in the amount set forth in the Bid Proposal, which shall include sales tax as provided in Section 1-07.2(2) of the Special Provisions. ARTICLE 5. PAYMENT PROCEDURES. CONTRACTOR shall submit Applications for Payment in accordance with Section 1-09.9 of the Standard Specifications which may be modified by the Special Provisions. Applications for Payment will be processed by ENGINEER as provided in the Special Provisions _____________ Contractor Initials City of Bremerton 233-1896-177 Reservoir 4 Fencing and Security Improvements I-36 May 2021 Contract Documents – Bid Set Contract CONTRACT (Page 2 of 4) ARTICLE 6. CONTRACT DOCUMENTS. The Contract Documents which comprise the entire agreement between CITY and CONTRACTOR concerning the WORK consist of this Contract and the following attachments to this Contract: x Notice Inviting Bids, x Bidders Checklist, x Bid Proposal including the Proposal Forms, Information Required of Bidder, Bid Bond, and all required certificates and affidavits, x Performance Bond, x Payment Bond, x Standard Specifications, x Amendments to the Standard Specifications, x Special Provisions, x Appendices x Contract Plans, x Addenda numbers _____ to _____, inclusive, x Change Orders which may be delivered or issued after Effective Date of the Agreement and are not attached hereto. There are no Contract Documents other than those listed in this Article 6. The Contract Documents may only be amended by Change Order as provided in Section 1-04.4 of the Standard Specifications which may be modified by the Special Provisions. ARTICLE 7. INDEMNIFICATION. The CONTRACTOR and CITY acknowledge and agree that they have negotiated the following in accordance with the requirements of RCW 4.24.115 and the CONTRACTOR specifically waives his immunity under industrial insurance under Title 51 RCW. To the fullest extent permitted by Laws and Regulations, the CONTRACTOR shall indemnify, defend, and hold harmless the CITY, ENGINEER, their consultants, subconsultants, and the officers, directors, employees, and agents of each and any of them, against and from any and all claims, injuries, damages, losses or suits, including all legal costs and attorney fees, all claims and liability arising under, by reason of, related, or incidental to the Contract Documents or any performance of the WORK, but not from the sole negligence or willful misconduct of the CITY and/or the ENGINEER as further defined in the Contract Documents. The provisions of this section shall survive the termination of the contract. _____________ Contractor Initials City of Bremerton 233-1896-177 Reservoir 4 Fencing and Security Improvements I-37 May 2021 Contract Documents – Bid Set Contract CONTRACT (Page 3 of 4) ARTICLE 8. ASSIGNMENT No assignment by a party hereto of any rights under or interests in the Contract Documents will be binding on another party hereto without the written consent of the party sought to be bound; and specifically but without limitation monies that may become due and monies that are due may not be assigned without such consent (except to the extent that the effect of this restriction may be limited by law), and unless specifically stated to the contrary in any written consent to an assignment, no assignment will release or discharge the assignor from any duty or responsibility under the Contract Documents. The CITY, in its sole discretion, may refuse to allow the CONTRACTOR to assign any or all of its duties, rights and/or responsibilities under the Agreement, except with regards to an assignment of funds for security purposes. In the case of an assignment for security purposes the CITY may condition its approval to the extent it deems necessary to assure that there will be adequate funds to complete the WORK and to pay a subcontractors and suppliers. ARTICLE 9. THIRD PARTY BENEFICIARY All parties agree that the State of Washington shall be, and is hereby, named as an express third- party beneficiary of the contract, with full rights as such. ARTICLE 10. NON-DISCLOSURE CONTRACTOR will not copy, reproduce, or further disclose the “Special Provisions” and corresponding appendices (collectively “Sensitive Security Documents”) unless authorized by the CITY in writing, the information becomes known to the public without the fault of the CONTRACTOR, the information is disclosed publicly by the CITY, or as required by law to disclose the information. CONTRACTOR agrees that upon final acceptance of the completed project by the CITY, CONTRACTOR will immediately and permanently destroy the Sensitive Security Documents. _____________ Contractor Initials City of Bremerton 233-1896-177 Reservoir 4 Fencing and Security Improvements I-38 May 2021 Contract Documents – Bid Set Contract CONTRACT (Page 4 of 4) CITY and CONTRACTOR each binds itself, its partners, successors, assigns and legal representatives to the other party hereto, its partners, successors, assigns and legal representatives in respect of all covenants, agreements and obligations contained in the Contract Documents. IN WITNESS WHEREOF, CITY and CONTRACTOR have caused this Agreement to be executed the day and year first above written. CITY: City of Bremerton CONTRACTOR: By By [CORPORATE SEAL] Attest Attest Address for giving notices Address for giving notices License No. Approved as to Form: Agent for service of process: (Signature) (Title) City of Bremerton 233-1896-177 Reservoir 4 Fencing and Security Improvements I-39 May 2021 Contract Documents – Bid Set Contract Certificate CONTRACT CERTIFICATE (if Corporation) STATE OF ) ) ss. COUNTY OF ) I HEREBY CERTIFY that a meeting of the Board of Directors of the ___________________ ____________________________________________________________________________ ____________________________________________________________________________ a corporation existing under the laws of the State of ____________________________, held on __________________, 20___, the following resolution was duly passed and adopted: “RESOLVED, that _________________________________________________, as ______________________ President of the Corporation, be and is hereby authorized to execute the Agreement dated _________________, 20___, by and between this Corporation and the City of Bremerton and that his/her execution thereof, attested by the Secretary of this Corporation, and with the Corporate Seal affixed, shall be the official act and deed of this Corporation.” I further certify that said resolution is now in full force and effect. IN WITNESS WHEREOF, I have hereunto set my hand and affixed the official seal of the corporation this _____, day of ___________________, 20___. (Secretary) (SEAL) City of Bremerton 233-1896-177 Reservoir 4 Fencing and Security Improvements I-40 May 2021 Contract Documents – Bid Set Contract Certificate This Page Intentionally Left Blank City of Bremerton 233-1896-177 Reservoir 4 Fencing and Security Improvements I-41 May 2021 Contract Documents – Bid Set Contract Certificate CONTRACT CERTIFICATE (if Limited Liability Company) STATE OF ) ) ss. COUNTY OF ) I HEREBY CERTIFY that a meeting of the Members of the __________________________ ____________________________________________________________________________ ____________________________________________________________________________ a Limited Liability Company existing under the laws of the State of _______________________, held on __________________, 20___, the following resolution was duly passed and adopted: “RESOLVED, that ____________________________ and ___________________, as Members of this Limited Liability Company, be and are hereby authorized to execute the Agreement dated _________________, 20___, to the City of Bremerton by this Limited Liability Company and that their execution thereof shall be the official act and deed of this Limited Liability Company.” I further certify that said resolution is now in full force and effect. IN WITNESS WHEREOF, I have hereunto set my hand this ___, day of ____________, 20___. A Limited Liability Company By: Member By: Member (SEAL) City of Bremerton 233-1896-177 Reservoir 4 Fencing and Security Improvements I-42 May 2021 Contract Documents – Bid Set Contract Certificate This Page Intentionally Left Blank City of Bremerton 233-1896-177 Reservoir 4 Fencing and Security Improvements I-43 May 2021 Contract Documents – Bid Set Contract Certificate CONTRACT CERTIFICATE (if Partnership) STATE OF ) ) ss. COUNTY OF ) I HEREBY CERTIFY that a meeting of the Partners of the ___________________________ ____________________________________________________________________________ ____________________________________________________________________________ a partnership existing under the laws of the State of _______________________, held on __________________, 20___, the following resolution was duly passed and adopted: “RESOLVED, that ____________________________ , as ______________________ of the Partnership, be and is hereby authorized to execute the Agreement dated _________________, 20___, by and between this Partnership and the City of Bremerton and that his/her execution thereof attested by the _____________________ shall be the official act and deed of this Partnership.” I further certify that said resolution is now in full force and effect. IN WITNESS WHEREOF, I have hereunto set my hand this ___, day of ____________, 20___. Partner (SEAL) City of Bremerton 233-1896-177 Reservoir 4 Fencing and Security Improvements I-44 May 2021 Contract Documents – Bid Set Contract Certificate This Page Intentionally Left Blank City of Bremerton 233-1896-177 Reservoir 4 Fencing and Security Improvements I-45 May 2021 Contract Documents – Bid Set Contract Certificate CONTRACT CERTIFICATE (if Joint Venture) STATE OF ) ) ss. COUNTY OF ) I HEREBY CERTIFY that a meeting of the Principals of the __________________________ ____________________________________________________________________________ ____________________________________________________________________________ a joint venture existing under the laws of the State of _______________________, held on __________________, 20___, the following resolution was duly passed and adopted: “RESOLVED, that ____________________________ , as ______________________ of the Joint Venture, be and is hereby authorized to execute the Agreement dated _________________, 20___, by and between this joint venture and the City of Bremerton and that his/her execution thereof attested by the _____________________ shall be the official act and deed of this Joint Venture.” I further certify that said resolution is now in full force and effect. IN WITNESS WHEREOF, I have hereunto set my hand this ___, day of ____________, 20___. Managing Partner (SEAL) END OF AGREEMENT City of Bremerton 233-1896-177 Reservoir 4 Fencing and Security Improvements I-46 May 2021 Contract Documents – Bid Set Contract Certificate This Page Intentionally Left Blank RESERVOIR 4 FENCING AND SECURITY IMPROVEMENTS •11 million gallon reservoir •Highly critical asset, supplies majority of average day demand of drinking water to Bremerton’s water utility customers including PSNS. •Identified in the Security and Vulnerability Assessment (SVA) as a site in need of improved security, because of residential development 1 RESERVOIR 4 FENCE LOCATED AT 3RD AVE AND ROOSEVELT •Approximately 1600 lf of high security fence around the perimeter of the property •2 mechanical vehicle gates •Enhanced access control and intrusion detection system 2 PROJECT BUDGET •Original budget of $250,000 was for clearing trees from site and adding a low tech fence •Additional budget of $265,000 requested to construct project with expanded scope that includes security enhancements recommended by the SVA •Current construction climate also contributed to increased costs 3 AGENDA BILL CITY OF BREMERTON CITY COUNCIL SUBJECT: Ordinance No. _____ amending Study Session Date: August 11, 2021 Title 15 of the Bremerton Municipal Code entitled “Municipal Utilities” COUNCIL MEETING Date: August 18, 2021 Department: PW&U Presenter: Ned Lever Phone: (360) 473-2398 SUMMARY: This update to the Bremerton Municipal code updates language in Chapters 15.01, 15.02, 15.03 and 15.04. The primary changes are an increase in the term of a Reimbursement Agreement from 15 to 20 years in accordance with an update to RCW 35.91.020, and clarifications of when Stormwater General Facility Charges are required. These updates also provide clarifying language relating to definitions, eliminate conflicting language, update code references, and update language service connections. ATTACHMENTS: 1) Ordinance No. ________; and 2) Power Point Presentation Added 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 pass Ordinance No. ______ amending Title 15 of the Bremerton Municipal Code entitled “Municipal Utilities.” COUNCIL ACTION: Approve Deny Table Continue No Action Form Updated 01/02/2018 A3 Updated Page 1 of 10 City Ordinance Form 2021 Title 15 Changes Rev. 10/2019 ORDINANCE NO. ________ AN ORDINANCE of the City Council of the City of Bremerton, Washington, amending Title 15 of the Bremerton Municipal Code entitled “Municipal Utilities.” WHEREAS, the City Council desires to amend Title 15 of the Bremerton Municipal Code entitled “Municipal Utilities” to update provisions of Chapter 15.01 entitled “General Provisions,” Chapter 15.02 entitled “Water,” and Chapter 15.04 entitled “Stormwater” and to make related changes; NOW THEREFORE, THE CITY COUNCIL OF THE CITY OF BREMERTON, WASHINGTON, DOES HEREBY ORDAIN AS FOLLOWS: SECTION 1. Subsection 15.01.020(c) of the Bremerton Municipal Code entitled “Definitions ‘C’” is hereby amended to read as follows: 15.01.020 DEFINITIONS. (c) Definitions "C": "Capital costs" shall mean the total costs of physical system improvements (exclusive of repair and replacement costs covered under operation and maintenance costs), including, but not limited to, the costs of direct construction, engineering, financing, legal fees, real estate, right-of- way, debt service, and other costs associated with such improvements. "City" means City of Bremerton. "Clearing" shall mean the destruction and removal of vegetation by manual, mechanical, or chemical methods. This definition shall include grubbing vegetation. "Clearing and grading permit" shall mean the written approval of the City of Bremerton Building Inspector to proceed with the act of clearing property within the City limits of Bremerton. The clearing and grading permit includes the associated approved plans and any conditions of approval as well as the permit form itself. "Combined sewer" shall mean a sewer intended to convey sanitary sewage, industrial wastes, and storm and surface water in a single system. "Commercial I" shall mean any user whose business or nonresidential wastewater discharges whose total suspended solids and biochemical oxygen demand is less than two hundred one (201) mg/L. "Commercial II" shall mean any user whose business or nonresidential wastewater discharges whose total suspended solids and biochemical oxygen demand ranges from two hundred one (201) to four hundred (400) mg/L. "Commercial III" shall mean any user whose business or nonresidential wastewater discharges whose total suspended solids and biochemical oxygen demand ranges from four hundred one (401) to six hundred (600) mg/L. "Commercial IV" shall mean any user whose business or nonresidential wastewater discharge whose total suspended solids and biochemical oxygen demand ranges from six hundred one (601) to eight hundred (800) mg/L. Page 2 of 10 City Ordinance Form 2021 Title 15 Changes Rev. 10/2019 "Commercial V" shall mean any user whose business or nonresidential wastewater discharge whose total suspended solids and biochemical oxygen demand ranges from eight hundred one (801) to one thousand (1,000) mg/L. "Commercial VI" shall mean any user whose business or nonresidential wastewater discharge whose total suspended solids and biochemical oxygen demand ranges from one thousand one (1,001) to one thousand two hundred (1,200) mg/L. "Commercial VII" shall mean any user whose business or nonresidential wastewater discharge whose total suspended solids and biochemical oxygen demand ranges from one thousand two hundred and one (1,201) to one thousand eight hundred (1,800) mg/L. "Commercial account with high conductivity" shall mean an account that discharges conductivity greater than (>) 6.0 mS/cm for any interval equal to or exceeding five (5) minutes three (3) times during any thirty (30) day period. The account will be billed the commercial special rate as published in the City of Bremerton utility rates and fee schedule. "Commercial agriculture" shall mean those activities conducted on lands defined in RCW 84.34.020(2), and activities involved in the production of crops or livestock for wholesale trade. An activity ceases to be considered commercial agriculture when the area on which it is conducted is proposed for conversion to a nonagricultural use or has lain idle for more than five (5) years, unless the idle land is registered in a federal or state soil conservation program, or unless the activity is maintenance of irrigation ditches, laterals, canals, or drainage ditches related to an existing and ongoing agricultural activity. "Commercial business with living units" shall mean a business with residential living units attached; the utility rates will be based on the business type and the number of residential units. "Commercial property" shall mean a parcel of property which is developed for nonresidential purposes. "Commercial special" shall mean any user whose business or nonresidential wastewater discharge whose total suspended solids (TSS) and biochemical oxygen demand (BOD) exceeds one thousand eight hundred (1,800) mg/L and/or has a conductivity discharge greater than (>) 6.0 mS/cm. These users will be charged for wastewater services on the basis of their specific discharge, which provides equitable recovery of the City’s cost of conveying, owning, operating, and maintaining the wastewater treatment system, rather than average class strength. "Condominium (condo)" shall mean an apartment that is individually owned but the land is jointly owned by all homeowners. "Conductivity" shall mean the measurement of electrical conductivity as an indicator of water quality. Conductivity data can determine concentration of solutions, detect contaminants and determine the purity of water. A conductivity sensor measures conductivity by AC voltage applied to nickel electrodes. These electrodes are placed in a water sample (or other liquid), where the current flows through the electrodes and the sample. Current level has a direct relationship with the conductivity of the solution. The basic unit of conductivity is the Siemens (S), sometimes referred to as mho. Since cell geometry affects conductivity values, standardized measurements are expressed in specific conductivity units (S/cm) to compensate for variations in electrode dimensions. Conductivity measurements, along with temperature, also allow for salinity values to be calculated through algorithms. "Connection fee" shall mean charges made for connection to the utility system. The connection fees will include the costs of tapping the water main, sewer main or storm main, Page 3 of 10 City Ordinance Form 2021 Title 15 Changes Rev. 10/2019 installing the service and meter, restoring the surface, and all other costs associated with the physical connection of the customer system to the City utility system. "Construction charge and special fees" shall mean those charges made by the City to cover its unreimbursed construction costs for installing special facilities not covered by connection fees and general facility fees. "Contract user" shall mean any user who, by virtue of the amount, strength, or location of its discharge or the conditions of service, requires a contractual basis for service to be equitably served. "Creek" shall mean those areas where surface waters flow sufficiently to produce a defined channel or bed. A defined channel or bed is indicated by hydraulically sorted sediments or the removal of vegetative litter or loosely rooted vegetation by the action of moving water. The channel or bed need not contain water year around. This definition is not meant to include stormwater runoff devices or other entirely artificial watercourses unless they are used to store and/or convey pass-through stream flows naturally occurring prior to construction. "Critical area" shall mean any area designated as a critical area pursuant to RCW 36.70A.170 and Chapter 20.14 BMC. "Cross connection" shall mean any physical arrangement whereby the City water system is connected, directly or indirectly, with any other water supply system, sewer, drain, conduit, pool, storage reservoir, plumbing fixture, or other device which contains or may contain contaminated water, sewage, or other waste or liquids of unknown or unsafe quality that may be capable of imparting contamination to the City water system as a result of backflow. Bypass arrangements, jumper connections, removal sections, swivel or changeover devices, and other temporary or permanent devices through which or because of which backflow could occur are considered to be cross connections. "Cubic feet (CF)" shall mean cubic feet of measure. SECTION 2. Subsection 15.01.020(r) of the Bremerton Municipal Code entitled “Definitions ‘R’” is hereby amended to read as follows: 15.010.020 DEFINITIONS. (r) Definitions "R": "Redevelopment" means conversion of an existing development to another land use, or addition of a material improvement to an existing development. "Reimbursement agreement" shall mean an agreement entered into between the installer owner of a utility facility and the City for the purpose of reimbursing the installer owner for all or part of the costs for installation or extension of the utility system by subsequent development for the facility defined in the agreement. "Removal" shall mean the actual destruction or causing the effective destruction through damaging, poisoning or other direct or indirect actions resulting in the death of a tree or ground cover. "Roof drains" shall mean any downspout, scupper or device that collects and conveys stormwater runoff from a roof surface. "Routine landscape maintenance" shall mean pruning, weeding, planting annuals, mowing turf lands and ground cover management which is undertaken by a person in connection with the normal maintenance and repair of property. This definition does not include falling or topping of trees or removal of invasive plants resulting from lack of regular maintenance. Page 4 of 10 City Ordinance Form 2021 Title 15 Changes Rev. 10/2019 SECTION 3. Subsection 15.01.020(s) of the Bremerton Municipal Code entitled “Definitions ‘S’” is hereby amended to read as follows: 15.01.020 DEFINITIONS. (s) Definitions "S": "Sanitary sewage" shall mean the liquid wastes and all constituents therein that are related to the use of such sanitation facilities, toilets, bathtubs, showers, sinks, dishwashers, washing machines, garbage grinders, and other devices. However, any other water that enters sanitary or combined sewers before or after discharge by a user shall thereafter also be called sewage. "Sewage" is essentially synonymous with the term "wastewater," except that wastewater may also contain liquid wastes discharged from industrial operations or processes. "Sanitary sewer" shall mean only those portions of the wastewater system which are designated to carry, transport, or dispose of wastewater. "Sedimentation" shall mean the process of gravity-induced settling, sinking and deposition of fragmented rock, soil, or organic particles displaced, transported, and deposited by erosive water-based processes. "Septage waste" shall mean waste material pumped from an on-site wastewater disposal system such as a septic tank or cesspool or holding tank. "Service line" shall mean a water service line constructed between the water main and the right-of-way or easement line in accordance with current Engineering Design and Construction Standards. "Sewer lateral" shall mean a sanitary sewer constructed between the sanitary sewer main and the right-of-way or easement line in accordance with current Engineering Design and Construction Standards. "Siltation" shall mean deposition of soil, sand, and gravel on the surface or in stormwater conveyance systems as a result of erosion in tributary areas and transport by runoff water. "Single-family parcel or unit" shall mean a parcel which has been developed with a single-family living unit. "Single-metered building" shall mean a building with more than one unit where the utility account is measured through a single water meter and provides service to all units and/or common areas. "Site" shall mean the portion of a piece of property which is directly subject to development. "Slope" shall mean the inclination of a surface expressed in a ratio of horizontal run to vertical rise measured as a numerical ratio, percent, or in degrees. Expressed as a ratio, the first number is the horizontal distance (run) and the second is the vertical distance (rise), as 2:1. A 2:1 slope is a fifty (50) percent slope. Expressed in degrees, the slope is the angle from the horizontal plane, with a ninety (90) degree slope being vertical (maximum) and forty-five (45) degrees being a 1:1 or one hundred (100) percent slope. "Standard construction costs" shall mean the total cost of installation of a utility piping system, including the cost of all manholes, distribution system, or incidental work necessary to place the utility system in service, meeting the minimum size and installation requirements of the utility for the intended service. Page 5 of 10 City Ordinance Form 2021 Title 15 Changes Rev. 10/2019 "Standard gravity sanitary sewer" shall mean a sanitary trunk sewer conveying flow to a point of collection without pumping and constructed in accordance with current Engineering Design and Construction Standards. "Standard gravity sewer connection" shall mean a connection made to a gravity trunk or lateral sanitary sewer of the City, except those City sewer lines located on the waterfront or pressure sewer line. "Standard stormwater sewer" shall mean a stormwater line not less than twelve (12) inches in diameter and constructed in accordance with current Engineering Design and Construction Standards. "Standard water main" shall mean a water distribution line constructed in accordance with current Engineering Design and Construction Standards. "Standards" shall mean the current Engineering Design and Construction Standards for the City of Bremerton. "Stormwater Manual" shall mean the manuals adopted in BMC 15.04.020. "Stormwater system" shall mean all facilities for collecting, transporting, pumping, treating and discharging stormwater. All developed properties within the City are connected to the stormwater system. "Sump pump" shall mean a pump that conveys ground water or stormwater runoff away from a sensitive area of a property to prevent flooding or property damage. A sump pump that discharges into a sanitary sewer or wastewater system is an improper connection. "SWMMWW" shall mean the current version of the Washington State Department of Ecology’s Stormwater Management Manual for Western Washington. SECTION 4. Section 15.01.030 of the Bremerton Municipal Code entitled “Utility Service Agreement” is hereby amended to read as follows: 15.01.030 UTILITY SERVICE AGREEMENT. (a) Each customer of the utility and any person requesting utility service from the City for water, wastewater, or stormwater shall be required to make application and enter into a utility service agreement. Agreements shall be executed prior to connection to the utility system or activation of the account. (b) The utility service agreement shall include the name and address of the owner and the service address of the premises served together with the service requested. The agreement shall be signed by the owner of the property or the owner’s designated agent and shall be filed with the City prior to making any utility service connectionbefore building permit issuance. No partial utility service agreement will be issued or approved; all services requested will be listed on the application. The applicant shall pay all general facility charges (GFCs) and installation and inspection fees for the all utility services, as herein provided, prior to making any utility servicewater, or storm service connection. Recognizing the broad benefits of the stormwater system as defined in BMC 15.01.020, all developed properties within the City are subject to the stormwater GFC regardless of whether they are or will be physically connected to the stormwater system. The building permit will not be issued until all of the applicable City fees are paid. Any request for deferment shall be in accordance with Bremerton Municipal Code Chapter 15.06. (c) The utility service agreement and/or the utility billing owner/tenant change form for service shall constitute a contract between the applicant and the City in which the applicant agrees to pay for service provided at the rate and in the manner specified. Page 6 of 10 City Ordinance Form 2021 Title 15 Changes Rev. 10/2019 (d) The agreement shall be effective at the time it is signed by the Director and charges for service to the premises shall be assessed from date of connection. (e) Customers may request written quotes from the City for the fees, assessments and charges for utility service. Such quotes are valid for ninety (90) days from the date of the quote, or until the end of the calendar year, whichever is sooner. (f) A customer can request in writing a refund of their Utility Service Agreement stating the reason for the request. When the request is received the Director will prorate the amount of refund based on the work performed to date, including consideration of any payments made to third parties in reliance on the utility service agreement. SECTION 5. Section 15.01.050 of the Bremerton Municipal Code entitled "Condition of Service – Contract" is hereby amended to read as follows: 15.01.050 CONDITION OF SERVICE – CONTRACT The City may contract for sale of surplus water or collection of wastewater and/or stormwater with other districts or other public agencies providing utility service. Such services shall be through a wholesale contract, under such terms and conditions as shall be deemed fair and equitable by the City and approved by the City Council. SECTION 6. Section 15.01.100 of the Bremerton Municipal Code entitled “Developer System Improvements – Reimbursement Agreements” is hereby amended to read as follows: 15.01.100 DEVELOPER SYSTEM IMPROVEMENTS – REIMBURSEMENT AGREEMENTS (a) The City may must enter into reimbursement agreements with property owners responsible for the installation of system improvements in accordance with RCW 35.91.020.to provide for reimbursement to owners by others benefiting from the improvements and connecting to the improvements at a later time. Requests for reimbursement by the property owner pursuant to this section shall be made in writing prior to entering into the public utilities construction agreement. Specific provisions of reimbursement shall be included in the reimbursement agreement and shall comply with RCW 35.91.020. The City shall determine the area that is subject to the reimbursement and shall identify the properties benefiting from the utility system improvements in a description or a drawing that will become part of the public utilities construction agreement. (b) Reimbursements will be added to the City’s permitting and licensing computer system. (c) Reimbursement from each benefiting property owner shall be determined by the City as stipulated in the system improvementreimbursement agreement. Cost recovery payments by properties benefiting from connections to developer extensions shall be collected by the City. (d) Reimbursement to the property owner constructing the improvement shall be limited to fifteen (15) years from the date of acceptance of the improvement. The City shall retain fifteen five percent (15%) of the cost recovery payments for maintaining records and administration of the program and forward the remainder of the payment to the property owner who originally constructed the water, wastewater, or stormwater system improvement. Page 7 of 10 City Ordinance Form 2021 Title 15 Changes Rev. 10/2019 SECTION 7. Section 15.02.070 of the Bremerton Municipal Code entitled “Private Pressure Adjustment” is hereby amended to read as follows: 15.02.070 PRIVATE PRESSURE ADJUSTMENT. Where water supply is not available to a premises because of low pressure during periods of peak demands for water, or where property is situated at such an elevation that it cannot be assured of adequate pressure, the owner may, at the owner’s expense, install a pump or pump system to furnish supply pressure, which shall be approved by the City. The City approval shall be based on the protection of the safety and integrity of the water system and not on the adequacy of the private system’s design for its intended use. The auxiliary system shall be separated from the meter box and remain the property of the property owner, who will be solely responsible for its maintenance and operation. In the event local conditions result in high pressure (exceeding eighty (80) psi), a pressure reducing valve may be required and installed at the expense of the owner. The pressure reducing valve shall be separated from the meter box and remain the property of the property owner who will be solely responsible for its maintenance and operation. SECTION 8. Section 15.02.090 of the Bremerton Municipal Code entitled “Fire Service and Irrigation Metering” is hereby amended to read as follows: 15.02.090 FIRE SERVICE AND IRRIGATION METERING (a) Except as provided for in BMC 18.02.170, all fire service lines shall have separate service lines and separate meters. If the existing service to the property does not meet the correct flow requirement, the cost to install the correct size will be assessed and paid to the City before work is completed. All new and existing automatic or manual fire sprinkler (wet and combination standpipe) systems used for fire protection shall be metered at the expense of the owner. Failure to make application for and payment of all fees for the installation of a meter as required on non-metered fire lines within ninety (90) days of notification shall be cause for the discontinuance of water service to the fire protection system. (b) All commercial or industrial sites shall have separate metered service for irrigation if irrigation is part of the approved new development. (c) Irrigation systems connected to a residential water meter are to be solely used for the parcel or property served. No other parcel may be served. SECTION 9. Section 15.02.100 of the Bremerton Municipal Code entitled “Service Connections” is hereby amended to read as follows: 15.02.100 SERVICE CONNECTIONS (a) All service connections shall be installed by the City in accordance with the Engineering Design and Construction Standards. The service connections shall be extended at right angles from the water system to the property line and installed within the right-of-way not to exceed forty (40) feet from the main. The water service line within the public right-of-way shall be maintained by and kept within the exclusive control of the City. Each service connection shall have its own service line and meter. Installation shall be at the expense of the property owner. Page 8 of 10 City Ordinance Form 2021 Title 15 Changes Rev. 10/2019 (b) Whenever an applicant requests and receives water service to a premises that does not front a main, a main shall be installed as a prerequisite to connect to the water system. (c) To service property which does not abut on a public right-of-way in which there is a water main, the City may install a connection to the most appropriate main. This connection shall be perpendicular to the main to the right-of-way line, and installed within the right-of-way not to exceed forty (40) feet from the main, and permit connection therewith by the owner at the property owner’s expense. (d) Every individual parcel under separate ownership connected to the water system shall be required to install a separate service connection to the water main, and the premises so supplied will not be allowed to supply water to any other premises or parcel. However, these restrictions shall not apply to existing services unless improvements are done to the parcel and the separate service and meter can be installed for twenty-five percent (25%) or less than the total improvement cost of the project or, in the judgment of the Director, such existing connection should be discontinued. (e) When a single parcel of land having more than one (1) residential structure served by a single water meter is subdivided, the installation of new water service(s) shall be required for the structures on the newly established lots. The expense for installation of the new service(s) will be to the owner that subdivided the property, and application for the service(s) will be filed prior to the approval of subdivision. The new service(s) will be subject to all fees including general facility charges. (f) When an existing structure is removed and a new structure is constructed on the same property or parcel, a new utility service agreement is required. Any existing water service line that does not meet current Engineering Design and Construction Standards and requirements shall be flow tested and approved by the Director for reuse. Any existing water service line determined to be substandard must be replaced as directed by the Director at the owner’s expense. (g) In new and pre-existing water service connections, each and every water meter shall have a shut-off valve on the customer side of the meter. Each water meter not already equipped with a shut-off valve as provided herein, must install a shut off valve at the owner’s expense. A shut-off valve must be installed within ninety (90) days of written notice from the City. Failure to install a shut-off valve within the time required will result in fees and costs for any calls related to temporary shut off of service. (hg) In new and pre-existing water service connections where one (1) water service serves more than one (1) premises, each and every building or trailer, when connected to one (1) water meter, must be provided with a separate shut-off valve. Shut-off valves shall be located so that each may be closed without disrupting water service to the remaining units. Each separate water service not already equipped with a shut-off valve as provided herein must install shut-off valves, at the owner’s expense, within ninety (90) days of notice of defect. Failure to provide such valve, or to shut off the water at such unit when unoccupied, will be considered sufficient reason to deny any adjustment in the water bill in the event of leakage due to these causes. (ih) The City may require or allow additional service connections when such additional service connections are in the best interest of the utility. SECTION 10. Section 15.04.060 of the Bremerton Municipal Code entitled “Service Area” is hereby amended to read as follows: Page 9 of 10 City Ordinance Form 2021 Title 15 Changes Rev. 10/2019 15.04.060 SERVICE AREA. Stormwater service is considered available to all of the public and private property within the City of Bremerton. Stormwater service area includes all public and private properties within the City of Bremerton through either natural drainages, direct discharge to receiving water, or constructed conveyance systems. All developed properties within the City are subject to the rates, GFCs, and other charges for stormwater service described in Chapter 15.06 BMC. Service is considered available for all properties in the City of Bremerton; however, In addition, storm drainage mitigation may be required pursuant to BMC 15.04.070. SECTION 11. 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 12. 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 13. 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 ____________________, 20___. _________________________________ KEVIN GORMAN, Council President Approved this ________ day of ________________________, 20___. _________________________________ GREG WHEELER, Mayor ATTEST: APPROVED AS TO FORM: __________________________________ _________________________________ ANGELA HOOVER, City Clerk KYLIE FINNELL, City Attorney Page 10 of 10 City Ordinance Form 2021 Title 15 Changes Rev. 10/2019 PUBLISHED the ________ day of ______________________, 20__. EFFECTIVE the ________ day of ______________________, 20__. ORDINANCE NO. ________. R:\Legal\Legal\Ordinances\Public Works & Utilities\Title 15 Updates 2021\2021.08.03 Ordinance - Title 15 Changes - FINAL.docx ORDINANCE AMENDING TITLE 15 OF THE BMC City Council Study Session August 11, 2021 Minor Modifications Stormwater System •"Stormwater system" shall mean all facilities for collecting, transporting, pumping, treating and discharging stormwater. All developed properties within the City are connected to the stormwater system. DEFINITIONS 15.01.020 Service Agreement Required •The agreement shall be signed by the owner of the property or the owner’s designated agent and shall be filed with the City prior to making any utility service connection. All Properties Subject to the Storm GFC •Recognizing the broad benefits of the stormwater system as defined in BMC 15.01.020, all developed properties within the City are subject to the stormwater GFC regardless of whether they are or will be physically connected to the stormwater system. 15.01.030 UTILITY SERVICE AGREEMENTS Modified to reference RCW 35.91.020 •Reimbursement Agreements allow a developer to recover costs of utility infrastructure improvements from future benefitting properties. •The term for Reimbursement Agreements has been increased to 20 years. •Staff propose reducing the admin fee from 15% to 5%. This is in line with the effort to administer the agreement and increases cost recovery for developers. 15.01.100 REIMBURSEMENT AGREEMENTS Irrigation Systems •Irrigation systems connected to a residential water meter are to be solely used for the parcel or property served. No other parcel may be served. OTHER CHANGES Water and WW Service Connections •Every individual parcel under separate ownership connected to the water system shall be required to install a separate service connection to the water main… •In new and pre-existing water service connections, each and every water meter shall have a shut-off valve on the customer side of the meter. Each water meter not already equipped with a shut-off valve as provided herein, must install a shut off valve at the owner’s expense. A shut-off valve must be installedwithin ninety (90) days of written notice from the City. OTHER CHANGES QUESTIONS? Form Created 5/4/15 INFORMATION ONLY ITEM CITY OF BREMERTON CITY COUNCIL SUBJECT: Briefing on Lodging Tax Advisory Committee (LTAC) Grant Application Rating Criteria and Process for Distribution of Funds for 2022 Study Session Date: August 11, 2021 Presenter: LTAC Chair Michael Goodnow Phone: (360) 473-5280 SUMMARY: With the 2021 Lodging Tax Grant Awards now completed, a briefing will be provided by LTAC Chair Michael Goodnow on the process underway for the 2022 Lodging Tax Grant Review.  Local groups have submitted applications with funding requests for use in 2022.  The LTAC will meet this fall to begin reviewing these requests.  The purpose of this briefing is to obtain feedback from the Council on their preferred priorities for rating criteria, while remaining within the criteria set by WA State law.  The feedback provided by Council will then be used to establish the 2022 Rating Checklist to be followed by the LTAC when they consider how to distribute the available funds.  It is anticipated the LTAC 2022 Funding Recommendations with be presented to the Council in October. HANDOUTS: 1) Lodging Tax Overview by Municipal Research Services Center; 2) 2022 Request for Proposals and Grant Application; and 3) Proposed LTAC Rating Checklist STUDY SESSION AGENDA: ☐ No Presentation ☒ Full Presentation B1 Lodging Tax (Hotel-Motel Tax) This page provides an overview of the lodging tax, also known as the hotel-motel tax, that cities and counties in Washington State may charge to benefit tourism, including applicable tax rates, use of revenues, lodging tax advisory committees (LTACs), and sample documents. The information on this page applies only to cities and counties. Certain public facilities districts also have separate lodging tax authority which is not discussed on this page. For more information, see our page on Public Facilities Districts (PFDs). For further guidance on lodging taxes and other local revenue options, see MRSC’s City Revenue Guide and County Revenue Guide. Overview Any city, town, or county has the authority to levy lodging taxes, also known as “hotel/motel taxes,” on all charges for furnishing lodging at hotels, motels, and short - term rentals – including such activities as Airbnb, bed and breakfasts (B&Bs), RV parks, and other housing and lodging accommodations for periods of time less than 30 days. The tax is collected as a sales tax and paid by the customer at the time of the transaction, and the revenues must be used for eligible tourism promotion activities or tourism-related facilities. There are two lodging tax options:  A “basic” or “state-shared” lodging tax up to 2% that is taken as a credit against the 6.5% state sales tax rate, so that the lodging patron does not see any tax increase (RCW 67.28.180-.1801). The state also sometimes refers to this as the “transient rental tax.”  An “additional” or “special” lodging tax up to 2% on top of the other state and local retail sales taxes, resulting in a higher tax bill for the patron (RCW 67.28.181). If a jurisdiction imposes both options at the maximum rate, that would bring the total lodging tax rate to 4%. However, a few specific jurisdictions are not authorized to collect certain lodging taxes while others have additional authority, as discussed below. "Basic" or "State-Shared" Lodging Tax Any county has the authority to levy the “basic” or “state-shared” lodging tax up to 2% (RCW 67.28.180), which is taken as a credit against the 6.5% state sales tax (RCW 67.28.1801). This means that there is no tax increase, and the total tax paid by the patron is equal to the retail sales tax in the jurisdiction in which the lodging is located. The state’s portion of the sales tax rate on lodging effectively drops from 6.5% to 4.5% within those jurisdictions. The state sometimes refers to this as the “transient rental tax.” Most cities and towns have similar “basic” lodging tax authority. The city’s basic rate is credited against the county’s basic rate (RCW 67.28.180(2)). For instance, if both the city and the county impose the full 2% basic lodging tax, the total rate will be 2% countywide, but the county will not receive revenues from the incorporated area because it must credit those revenues back to the city. The basic lodging tax has a few exceptions:  No city located within King County may impose the basic lodging tax (see RCW 67.28.180(2)(c)(ii)), except for Bellevue which has legislation allowing it to collect a rate up to 2% until its related debt is retired (subsection (2)(c)(iii).  No city that is located within a county that is exempt under RCW 67.28.180(2)(b) may impose the basic lodging tax so long as the county remains exempt. Currently, Yakima County is the only county exempt under that subsection, so no city within Yakima County may impose this tax. However, there is also an exception that grandfathers in the City of Yakima and allows it to collect a basic lodging tax up to 2% until its related debt is retired (subsection (2)(c)(iii)).  For Bellevue/King County and City of Yakima/Yakima County, the statutory exemptions allow the jurisdictions to “double-dip,” meaning that the city lodging tax is not taken as a credit against the county rate. Instead, the city and county rates are added together, resulting in a credit of up to 4% against the state sales tax rate within Bellevue and the City of Yakima. This means the state only receives a 2.5% sales tax on lodging in those two cities. "Additional" or "Special" Lodging Tax In addition to the “basic” 2% lodging tax, any county may impose an “additional” or “special” lodging tax up to 2% in increments no smaller than 0.1% (RCW 67.28.181). Unlike the basic lodging tax, the additional lodging tax is not a credit against the state sales tax and results in a tax increase for the lodging patron. If the basic and additional lodging tax are each levied at a rate of 2%, the combined lodging tax rate would be 4% and the total tax paid by the patron would equal the retail sales tax in the jurisdiction plus the additional/special lodging tax of 2%. Most cities and towns also have similar authority, and just like the basic lodging tax the city’s additional lodging tax must be taken as a credit against the county’s additional rate (RCW 67.28.181(3)). For instance, if both the city and the county impose the full 2% additional lodging tax, the total additional rate will be 2% countywide, but the county will not receive revenues from the incorporated area because it must credit those revenues back to the city. The additional lodging tax also has a few exceptions:  Counties and cities that imposed a combined lodging tax greater than 4% before July 27, 1997 were grandfathered in under RCW 67.28.181(2)(a). This includes Grays Harbor and Pierce counties (and the cities within them), plus the cities of Airway Heights, Bellevue, Chelan, Leavenworth, Long Beach, Winthrop, and Yakima.  Any city located within a county that had the authority to levy a countywide 4% lodging tax before January 1, 1997 may not impose the additional 2% (RCW 67.28.181(2)(b)). This applies to all cities in Cowlitz and Snohomish counties.  Cities that imposed a combined lodging tax rate of 6% before January 1, 1998 are grandfathered in under RCW 67.28.181(2)(d). This occurred due to a unique set of circumstances and only applies to the cities of Wenatchee and East Wenatchee. Use of Revenues City and county lodging tax revenues – including both the “basic” and “additional” lodging taxes – must generally be used for tourism promotion, acquisition of tourism-related facilities, or operation of tourism-related facilities (RCW 67.28.1815-.1816), including:  Tourism marketing;  Marketing and operations of special events and festivals designed to attract tourists;  Operations and capital expenditures of tourism-related facilities owned or operated by a municipality or a public facilities district, including repayment of general obligation bonds (RCW 67.28.150) or revenue bonds (RCW 67.28.160) for eligible capital projects; or  Operations of tourism-related facilities owned or operated by nonprofit organizations (but not capital expenditures). (King County has separate provisions and requirements for how to spend the revenues.) Definitions of “tourism,” “tourism promotion,” and “tourism-related facility” are provided in RCW 67.28.080. Cities and counties may use the funds either directly, or indirectly through a convention and visitor’s bureau or destination marketing organization. The funds may be awarded to nonprofits, tourism organizations, and to the city or county for eligible expenses. Practice Tip: The guiding principle is that these facilities should be used by tourists. So for example, a municipal golf course would likely be a permitted lodging tax expenditure in Chelan, while it probably would not be if it were in a residential neighborhood in Spokane. Each situation is unique and requires careful assessment. After conferring with the State Auditor’s Office, we have also concluded that lodging tax revenues may be used to pay for staff support of the lodging tax advisory committee (LTAC, described in further detail below), provided that proper application and reporting requirements are followed. Our conclusion comes from RCW 67.28.1815, which states that the revenues must be used “solely for the purpose of paying all or any part of the cost of tourism promotion…” It is our opinion that the primary function of an LTAC is to promote and market tourism. Cities and counties may also use lodging tax revenues to repay general obligation bonds (RCW 67.28.150) or revenue bonds (RCW 67.28.160) issued for affordable workforce housing within a half-mile of a transit station. For more information, see our page on Affordable Housing Funding Sources. Application and Award Process All prospective lodging tax recipients must apply to the city/county for funding. The entities that may apply for lodging tax funding are:  Convention and visitors’ bureaus;  Destination marketing organizations;  Nonprofits, including main street organizations, lodging associations, or chambers of commerce; and  Municipalities (defined as any city, town, or county). Any city or county with a population of 5,000 or more that imposes any lodging tax must also establish a lodging tax advisory committee (LTAC), described in the next section, to review the applications and make funding recommendations. Jurisdictions with a population of less than 5,000 are not required to establish an LTAC, although they may do so if desired. If the jurisdiction does not have an LTAC, prospective applicants must apply directly to the legislative body (city council or county commission) for consideration and funding. All applications must include estimates of how funding the activity will result in increases to the number of people staying overnight, traveling 50 miles or more, or coming from another state or country. To ensure that the applicants are compliant with this statutory requirement, this information should be included in the lodging tax application form that will be filed with the city/county or the LTAC. There is no requirement that priority for funding be given to applicants expected to generate the largest number of tourists, and lodging tax revenue may still be awarded to recipients who provide services that indirectly increase tourism such as destination marketing organizations. The law is silent on the frequency of the awards. Some jurisdictions choose to make the award process a part of their annual budget cycle while others may incorporate a mid-year awards procedure to account for unexpected increases or decreases in lodging tax revenues. Practice Tips:  The State Auditor’s Office interprets the law to mean that all users of lodging tax funds, including municipalities, are considered applicants and must follow the relevant application procedures. So, if cities or counties are seeking to use the funds directly, the city/county should submit applications for their own projects to the legislative body or LTAC for consideration.  To avoid any concerns regarding gifting of public funds, the city or county awarding the funds should enter into a contract with the recipient organization(s). The contract should spell out the tourism-related services to be provided in exchange for the funding, as well as the required reports that must be filed by the recipient that quantifies the services in terms of the number or tourists generated as a result of the funding. Lodging Tax Advisory Committees (LTACs) Any city or county with a population of 5,000 or more that imposes any lodging tax is required to establish a lodging tax advisory committee (LTAC) to review the applications and make funding recommendations to the legislative body. Practice Tip: Jurisdictions with a population of less than 5,000 are not required to establish an LTAC, although they may do so voluntarily. If a jurisdiction voluntarily establishes an LTAC, it is not required to follow these rules and may adopt its own processes and requirements. For jurisdictions of at least 5,000 population, the LTAC must be appointed by the legislative body (city council or county commission) and must contain at least five members, including at least two representatives of businesses that are required to collect the lodging tax, at least two people who are involved in activities that are authorized to be funded by the lodging tax, and one elected official from the jurisdiction who serves as chair (RCW 67.28.1817). The number of committee members from organizations representing hotels/motels collecting the tax and the number from organizations involved in activities that can be funded must be equal. Organizations representing hotels and motels and organizations involved in activities that can be funded by this tax may recommend people for membership. The statute also provides that a person who is eligible under the first category (lodging businesses) is not eligible for appointment under the second category (funding organizations), and vice versa. The legislative body must review the committee’s membership annually and makes changes as appropriate. A city's committee may include a non-voting elected county official and vice versa. The LTAC receives all applications for lodging tax revenue and recommends a list of candidates and funding levels to city or county legislative body for final determination. The statute says that the legislative body “may choose only recipients from the list of candidates and recommended amounts provided by the local lodging tax advisory committee” (RCW 67.28.1816(2)(b)(ii), emphasis added). Practice Tip: The legislative body is not required to fund the full list of recommended recipients and may choose to make awards to only some or even none of the recommended recipients, but the legislative body may not award funds to any recipient that was not recommended by LTAC. However, an informal opinion from the Attorney General’s Office in 2016 states that the legislative body may award amounts different from the LTAC’s recommended amounts, but only after satisfying the procedural requirements of RCW 67.28.1817(2). This requires the municipality to submit its proposed change(s) to the LTAC for review and comment at least 45 days before final action is taken. Any proposal to impose a new lodging tax, raise the rate of an existing tax, repeal an exemption from the lodging tax, or change the use of the tax proceeds, must be submitted to the lodging tax advisory committee for review and comment at least 45 days before final action will be taken on the proposal by the legislative body (RCW 67.28.1817(2)). Reporting Requirements All cities and counties receiving lodging tax revenues must file an annual report with the Joint Legislative Audit & Review Committee (JLARC) by May 15 for the prior calendar year (RCW 67.28.1816). If a jurisdiction received lodging tax revenues but did not have any distributions or expenses during the calendar year, the JLARC report must still be completed and filed by the deadline indicating no activity. JLARC has established an online reporting system – see the reporting instructions, data field descriptions, and FAQs at the top of the JLARC page. The reporting requirements include:  All lodging tax revenues received;  All lodging tax revenues distributed and/or expended;  All recipients of lodging tax monies, including the city itself, that may have directly used lodging tax funds for qualifying facilities, tourist events, or tourism administration; and  For all recipients, the actual number of people traveling for business or pleasure on an overnight trip in paid accommodations, traveling 50 or more miles away from their business or place of residence for the day or overnight, or traveling from another country or state. Practice Tip: The deadline to submit the annual lodging tax data to JLARC is May 15 for the year ending December 31 of the prior fiscal period. However, the JLARC online filing system can record and store lodging tax activity throughout the calendar year, so as part of your contract with recipients, we recommend that you require the recipient to file the actual number of attendees, overnight stays, and/or other associated tourism data as soon as the event or activity has been completed to ensure the city’s full compliance with JLARC. Maximum Combined Sales & Lodging Tax Rate For cities and counties, the maximum combined sales and lodging tax rate upon sales of lodging may not exceed 12% (RCW 67.28.181(1)), except for Seattle which has a maximum combined rate of 15.2%. The statutes included within the 12% cap are:  Chapter 36.100 RCW (public facilities districts),  Chapter 82.08 RCW (state sales tax)  Chapter 82.14 RCW (local sales taxes)  Chapter 67.28 RCW (lodging taxes), and  Chapter 67.40 RCW (convention and trade center tax – repealed in 2010). However, affordable housing sales taxes (see RCW 67.28.181(4)) and the first 0.4% of the Sound Transit high-capacity transit sales tax (adopted prior to December 1, 2000 – see RCW 82.14.410(2)(c)) are not included within the 12% cap. Most counties and cities are not that close to the 12% cap, and the cap does not affect the ability of any jurisdiction to impose the maximum “basic” lodging tax allowed by law since it is taken as a credit against the state sales tax and does not increase the sales tax rate. However, the 12% cap may limit the “additional” lodging tax rate that some jurisdictions may impose. RCW 82.14.410 provides that any local sales and use tax increase adopted after December 1, 2000 must exempt lodging sales if the increase would cause the total combined lodging/sales tax rate to exceed the greater of the 12% cap or the actual combined lodging/sales tax rate in effect on December 1, 2000. Examples of Lodging Tax Documents Below are selected examples of lodging tax ordinances, code provisions, application forms, and contracts. Code Provisions/Ordinances  Clallam County Code Ch. 5.13 – Additional Special Excise Tax on Lodging  Ferndale Municipal Code Ch. 2.31 – Lodging Tax Advisory Committee  Kirkland Municipal Code Ch. 5.19 – Lodging Excise Tax, with tourism development committee performing LTAC functions  Ocean Shores Resolution No. 787 (2019) – Establishing plan for use of lodging tax funds, LTAC membership, funding process, and city council goals and priorities for use of lodging taxes.  Quincy Municipal Code Ch. 2.36 (Lodging Tax Advisory Committee) and Ch. 3.24 (Hotel/Motel Tax)  San Juan County Code Ch. 3.16 – Lodging Tax  SeaTac Ordinance No. 98-1049 (1998) – Authorizes issuance of $5 million in limited tax general obligation (LTGO) bonds for specified tourism-related capital projects, repaid from lodging tax revenues and, if lodging taxes are insufficient, general property taxes  Spokane Valley Municipal Code Ch. 3.20 – Transient Occupancy Tax RFPs, Applications, and Guidelines  Airway Heights Lodging Tax Advisory Committee – Includes city’s tourism policy goals and strategic plan, LTAC grant application and instructions, and application for reimbursement of approved funding  Kittitas County, Cle Elum, Ellensburg, and Roslyn Request for Proposals: Lodging Tax Fund – Consolidated online application form for county and cities. Provides lots of details about the application and scoring process; users must log in to access form o Lodging Tax Request For Proposals (2017) – Older paper copy of RFP; includes application form, rating form; and applicant and internal submittal checklists o Consolidated Lodging Tax Interlocal Agreement (amended 2018) – Creates consolidated lodging tax application process with countywide lodging tax advisory committee (LTAC) work group consisting of members of each participating LTAC. Includes amendments.  Lacey Application for City Lodging Tax Funds (2019)  Ocean Shores Lodging Tax Funds Application (2019)  Pacific County Lodging Tax Grant Application Packet (2019)  Pierce County Lodging Tax Program – Includes application process and forms, list of awards, and “resources” including the county’s tourism funding strategic plan and LTAC scoring matrices. Applicants must schedule a one-on-one application workshop with the county economic development department.  San Juan County Lodging Tax Advisory Committee – Includes most recent LTAC master plan, RFPs, and application forms  Wenatchee Application for Lodging Tax Funds (2016) Contracts with Lodging Tax Recipients  Ocean Shores Tourism Promotion Agreement (2019) – Contract template for lodging tax recipients; includes reporting requirements and example of final report on number of visitors and paid room nights  Olympia Professional Services Agreement for Tourism Promotion (Lodging Tax) Services (2014) – Agreement to use lodging tax revenues for marketing and promotion of the Hands On Children’s Museum and the 2014 Sand in the City event, not to exceed $60,000.  Union Gap Old Town Days Agreement (2011) – Simple and short contract  Wenatchee Municipal Services Agreement Re: Lodging Tax Funded Activities (2014) – Agreement to use lodging tax revenues to support operations of nonprofit Wenatchee Valley Museum and Cultural Center Association by growing visitation, enhancing events and marketing, and supporting a visitor services staff member/volunteer coordinator Last Modified: May 06, 2021 https://mrsc.org/Home/Explore-Topics/Finance/Revenues/Lodging-Tax.aspx CITY OF BREMERTON 2021-2022 Lodging Tax Request for Proposals June 11, 2021 Updated July 10, 2021 The City of Bremerton’s Lodging Tax Advisory Committee is now accepting separate applications for Fiscal Years 2021 and 2022. Applicants who may apply for funding may include the following: • visitor and convention bureaus • destination marketing organizations or businesses • non-profit organizations including main street organizations, lodging associations, or chambers of commerce • municipalities or public facilities districts owning or operating tourism related facilities Waived for this application cycle due to COVID-19 Impacts Eligible projects are defined under RCW 67.28 as the following: • tourism-based marketing to attract out-of-area tourists (more than 50 miles away) i.e. printed brochures, flyers, posters; website; social media; radio; newspaper ads • marketing and operations of special events and festivals designed to attract out-of-area tourists • operations of tourism-related facilities owned or operated by non-profits • operations and capital expenditures of tourism related facilities owned or operated by a municipality or public facility district TIMELINE Request for Proposals Issued June 11, 2021 Request for ’21 Proposals Deadline Noon on July 1, 2021 Request for ’22 Proposals Deadline Noon on July 29, 2021 Discuss & Finalize ’21 Recommendations July 9, 2021 Meetings with Eligible ’22 Applicants TBA Discuss & Finalize ’22 Recommendations TBA Recommendations approved by City Council By December 15, 2021 Arrangements with Contracts Administrator Beginning in January 2022 BACKGROUND Each year the City of Bremerton’s Lodging Tax Advisory Committee requests applications to fund projects that support tourism within Bremerton. Funding varies and this revenue comes from a 4% excise tax charged to travelers who stay at local hotels. Part of the proceeds are pre-dedicated to operations and debt payments for the Kitsap Conference Center and for operation of the Admiral Theatre. The City of Bremerton’s Lodging Tax Advisory Committee (LTAC) was established by the City Council in accordance with Washington State Law RCW 67.28. The committee’s specific purpose is to advise and recommend to the City Council how excise taxes on lodging should be allocated to support tourism in Bremerton. The Council can accept or modify the recommendations, after submitting its proposed changes to the LTAC, with the approved allocations being included in the next fiscal year’s budget. After the budget is approved, the following are required by applicants to receive funding: • Recipients must enter into a Tourism Promotion Services Agreement with the City of Bremerton • Business Organizations must have a current Bremerton Business License • All recipients must provide a signed W9 Form • Recipients must carry Liability Insurance; and apply for Special Events Permits (as appropriate) • Prior to reimbursement, regular Invoices must be submitted with detail on completed work • Data must be reported annually to confirm the actual tourism being generated as required by the State’s Joint Legislative Audit & Review Committee (JLARC) THE LODGING TAX ADVISORY COMMITTEE Under RCW 67.28, the committee is required to have two representatives of businesses that collect the tax, two representatives of eligible organizations to receive funding, and an elected official. LTAC Member Organization Role Michael Goodnow City of Bremerton Elected Official & Committee Chair Ashley Walchok Fairfield Inn & Suites Collector of Hotel/Motel Tax Ash Printy Hampton Inn & Suites Collector of Hotel/Motel Tax Mike Huey Washington State Science & Engineering Fair (WSSEF) Potential Recipient of Funds Virgil Valdez Filipino-American Association of Kitsap County Potential Recipient of Funds APPLICANT CRITERIA The City of Bremerton has estimated $100,000 will be available to organizations for each year, 2021 and 2022. This funding is intended to help return long-time community events; and help keep doors open for tourism supporting organizations and venues impacted by the pandemic. Changes in the application process include: • Due to the pandemic and limited available funding, the Bremerton City Council has waived previous guidelines for the LTAC that dedicated a % for project categories • The LTAC will not be considering new events/proposals during this application cycle • The LTAC will not be considering new municipal requests • Interviews with Applicants will not be required for ’21 Requests • There will be a separate process for ’21 and ’22 for Applications Review and Recommendations Criteria to be used by the LTAC will include the following considerations: • Out of Area Marketing • Events to draw tourists from 50 miles or more away • Collaboration with Community Organizations • Economic Impact APPLICATION INSTRUCTIONS 2021 Application and all related materials must be submitted electronically to City.Council@ci.bremerton.wa.us no later than 12:00 PM on Thursday July 1, 2021. 2022 Application and all related materials must be submitted electronically to City.Council@ci.bremerton.wa.us no later than 12:00 PM on Thursday, July 29, 2021 1. Required for All Applicants: a) The questions in the application must be completed in order b) The application must not exceed 3 pages, not including attachments; and c) The application must be signed by the individual who has the authority to sign documents such as contracts 2. Required for All Applicants: a) Brief Statement detailing how the funding would be used Added b) Program or Project Budget Added c) Attach your Prior Year and Year-To-Date Income Statement (Revenue & Expense); and d) Attach your Prior Year and Year-To-Date Balance Sheet (Assets & Liabilities) ***Please note specific line items designated for tourism-related expenses*** 3. Required for All Applicants: a) Attach your current Tax Return 4. Required for All Applicants: a) Attach up to 5 examples of marketing Questions may be directed to Christine Grenier, Legislative/Auditor Assistant at (360) 473-5280 or by email at City.Council@ci.bremerton.wa.us. For more information on RCW 67.28, please visit https://app.leg.wa.gov/rcw/. FY2022 Lodging Tax Application Organization Month/Timeframe of Event or Operations Event/Activity (check/complete all that apply) Tourism Promotion Operations (Event/Festival Title) Operations (Facility, Staffing, Other) Amount of Request $ Presenter & Title Phone Email Applicant Acknowledgement Applicants accept the following conditions: Application Deadline – Thursday, July 29, 2021 by 12:00 PM Applications will be accepted only by e-mail at City.Council@ci.bremerton.wa.us  Following the deadline, applications cannot be modified  Late applications will not be accepted  Responses to be limited to one page per section, plus required attachments  Successful, eligible applicants may be contacted to schedule an interview with the Lodging Tax Advisory Committee (Fall 2021) If funded, the individual who has the authority to sign contracts and provide documents to the City of Bremerton is requested to sign below; and to also acknowledge your responsibility to notify the Legislative Assistant and Contracts Administrator of any changes to your organization’s contact information… Point of Contact Title Signature Phone Email FY2022 Lodging Tax Application *** Limit Response to 1 Page for Each Section *** Marketing Plan 1. Explain your organization’s current Marketing Plan to promote tourism in Bremerton & specify your audience. 2. Discuss how your marketing approach generates “heads on beds” in Bremerton; and/or draw visitors from 50+ miles away? 3. What % of your organization’s budget is marketing? Provide a summary of the types of marketing and total amount spent for each that your organization uses. *** Limit Response to 1 Page for Each Section *** Financial Status 4. Please respond to the following: a) If your event was cancelled in 2020 due to COVID-19, explain what you plan to do to ensure your event can proceed if there are continued social distancing restrictions in 2022. And if you anticipate any obstacles, please let us know to determine if the City of Bremerton can provide assistance. b) Has your organization applied for funding from other sources or will your organization be pursuing funding in the future? If no, why? c) If your organization collaborates with other organizations or groups to encourage tourism, how is this accomplished? d) If your organization does sole marketing, are you currently considering opportunities for collaboration? FY2022 Lodging Tax Application *** Limit Response to 1 Page for Each Section *** Reporting Requirements 5. Organizations that receive funding from lodging tax are required by the State to submit data to the City of Bremerton on an annual basis. For All Applicants: Please respond with estimates for 2022: a) How many visitors will your program or event bring to Bremerton? b) How many visitors will travel to Bremerton and stay overnight? c) How many visitors will travel 50 miles or more for the day or stay overnight? d) How many visitors will travel from another country? e) What revenue is expected to be generated by your program or event? f) Please explain your methodology for collecting and/or estimating tourist data. *** Limit Response to 1 Page for Each Section *** Required Attachments 1. Brief Statement detailing how the funding would be used Added Program or Project Budget Added Prior Year and Year-To-Date Income Statement (Revenue & Expense); and Prior Year and Year-To-Date Balance Sheet (Assets & Liabilities) ***Please note specific line items designated for marketing & tourism-related expenses*** 2. Current Tax Return 3. Up to 5 examples of marketing Bremerton Lodging Tax Advisory Committee 2022 Rating Sheet Applicant Amount Requested Application Evaluation: Yes or No 1. Does the applicant describe how the project will utilize out-of-area marketing? 2. Does the project leverage marketing and timing with another event(s)? 3. Does the applicant demonstrate collaboration with other organizations for marketing? 4. Does the applicant demonstrate collaboration with other organizations for events/programs? 5. Will the project/program specifically encourage overnight stays? 6. Based on the project budget, does the organization pursue other sources of funding? 7. Does the applicant outline a planned effort to become financially sustainable? 8. If the project were not funded/partially funded, would the project proceed as planned? 9. Could the proposal be done by an existing organization? 10. Will the proposal make a substantial (or nominal) economic impact on tourism? Interview Evaluation: 1. What are the applicant’s funding priorities? 2. How does the applicant quantify the prior year’s success? 3. How will the proposal benefit Bremerton’s tourism? 4. Are there plans for event expansion? Summer vs. Off-Season? 5. Are there plans for marketing improvements (printed, social media, website, misc. ads)? Bremerton Lodging Tax Application Evaluation Criteria 5 Points Awarded for Each Response under Each Category Criteria Maximum Score Score Proposal will support long-term tourism in Bremerton a) Function later successfully on its own b) Benefits community beyond 5 years 10 Budget provides detail on how the funding will be used a) Marketing b) Operations of Special Event or Festival c) Capital Project to increase or improve tourism 10 Available Resources a) level of collaboration b) other funding sources such as cash, in-kind, grants c) start-up funding to establish an activity, program, organization or facility 15 There is a clear plan/method (s) to track proposal’s performance a) program or event with history of at least 3 years b) provides example (s) of successful methods to track tourism data c) demonstrated contract permit compliance 15 Brings Out-of-Area Visitors a) new proposal/event b) generates new event in off-season c) multi-day proposal/event d) # of overnight stays generated e) marketing reaches out-of-area audience 25 Proposal will generate significant economic impact a) attracts visitors from more than 50 miles away b) expands awareness of Bremerton and promotes positive visitor experience c) promotes attractions d) will expand lodging tax revenue 25 90