HomeMy WebLinkAbout03/09/2022 STUDY SESSION AGENDA PACKET______________________________________________________________
CITY COUNCIL 345 6th Street, Suite 100, Bremerton, WA 98337 Phone (360) 473-5280
WEDNESDAY, MARCH 9, 2022
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 March 16, 2022 City Council Meeting Agenda…
Members of the public are invited to join the Zoom webinar by clicking on the following link:
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Or iPhone one-tap:
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Or Telephone: Dial (for higher quality, dial a number based on your current location):
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Webinar ID: 815 0242 9667
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.Purchase of 2022 Replacement Vehicles (Order No. 2)
2.Lease Agreement with the Suquamish Tribe for the Gorst Creek Hatchery Area
3.Goods and Services Agreement with ADT Commercial for Fire/Security Alarm Systems, Fire
Suppression Systems; and Alarm Monitoring, Maintenance and Testing
4.Contract with Pape & Sons Construction, Inc. for Oyster Bay Avenue Force Main
Replacement Project; and related Budget Amendment
5.Public Works Agreement with Vet Industrial, Inc. for the 2022 Sewer Pipe Repairs – Various
Locations Project
6.Proposed Public Hearing (1st of 2) on the 2nd Amendment to the Concession Agreement
with Olympic Soccer & Sports Center, LLC
7.Proposed Public Hearing for Ordinance amending Chapter 3.78 of the Bremerton Municipal
Code (BMC) entitled “Multifamily Property Tax Exemption”
B.GENERAL COUNCIL BUSINESS
o Audit Committee Briefing (Last Meeting 2/28/22) – Chair Jeff Coughlin
o Public Safety Committee Briefing (Last Meeting 3/03/22) – Chair Jennifer Chamberlin
o Briefing on REAC Community Conversation (Event 3/08/22) – Chair Quinn Dennehy
o Other General Council Business
C.ADJOURNMENT OF STUDY SESSION
AGENDA BILL
CITY OF BREMERTON
CITY COUNCIL
SUBJECT: Study Session Date: March 9, 2022
Purchase of 2022 Replacement Vehicles
(Order No. 2)
COUNCIL MEETING Date: March 16, 2022
Department: PW & U
Presenter: Chris Mottner
Phone: (360) 473-2316
SUMMARY: The approved 2022 budget includes replacement and purchase of twenty-one vehicles.
Order No. 1 included thirteen vehicles and was approved by Council on December 1, 2021. This
Order No. 2 includes three vehicles - similar to Order No. 1 the vehicles will be purchased using the
Washington State DES Procurement Contract #05916. At this time, only these three vehicles are
available from the original 2022 Vehicle Replacement Listing. The remaining five vehicles will be
purchased in late 2022 when those vehicles are available for purchase by the Washington State DES
Procurement Contract.
ATTACHMENTS: 1) Justification; 2) Vehicle Purchase Summary; 3) Quotes
FISCAL IMPACTS (Include Budgeted Amount): All vehicles identified on the vehicle purchase list
are budgeted in 2022.
STUDY SESSION AGENDA: ☒ Limited Presentation ☐ Full Presentation
STUDY SESSION ACTION: ☐ Consent Agenda ☐ General Business ☐ Public Hearing
RECOMMENDED MOTION:
Move to approve the 2022 vehicle purchase order as presented in the summary in the amount of
$109,885.14, including Washington State Sales Tax.
COUNCIL ACTION: Approve Deny Table Continue No Action
Form Updated 11/09/2021
A1
AGENDA BILL
CITY OF BREMERTON
CITY COUNCIL
SUBJECT: Lease Agreement between the Study Session Date: March 9, 2022
City of Bremerton and the Suquamish Tribe
for the Gorst Creek Hatchery Area
COUNCIL MEETING Date: March 16, 2022
Department: PW & U
Presenter: Chris Mottner
Phone: (360) 473-2316
SUMMARY: Staff requests approval of the property Lease Agreement with the Suquamish Tribe for
the Gorst Creek Fish Hatchery operations. This Lease Agreement is for a 10 – year term and
provides provisions for property use, maintenance and operations and accurately defines Lease area
boundaries and access to the property.
ATTACHMENTS: Lease Agreement with the Suquamish Tribe
FISCAL IMPACTS (Include Budgeted Amount): No fiscal impacts.
STUDY SESSION AGENDA: ☒ Limited Presentation ☐ Full Presentation
STUDY SESSION ACTION: ☐ Consent Agenda ☐ General Business ☐ Public Hearing
RECOMMENDED MOTION: Move to approve the Lease Agreement between the City and the
Suquamish Tribe for the Gorst Creek Hatchery Area; and authorize the Mayor to finalize and execute
the agreement with substantially the same terms and conditions as presented.
COUNCIL ACTION: Approve Deny Table Continue No Action
Form Updated 11/09/2021
A2
AGENDA BILL
CITY OF BREMERTON
CITY COUNCIL
SUBJECT: Study Session Date: March 9, 2022
Goods and Services Agreement with ADT
Commercial for Fire/Security Alarm
Systems, Fire Suppression Systems; and
Alarm Monitoring, Maintenance and Testing
COUNCIL MEETING Date: March 16, 2022
Department: PW & U
Presenter: Chris Mottner
Phone: (360) 473-2316
SUMMARY: Requests for proposals were prepared, advertised, distributed and received, pursuant
to Public Works Bid Laws and Procedures. The Low Bidder was ADT Commercial, of Bothell, WA.
The Department requests approval of the bid award for the Goods and Services Agreement with ADT
Commercial for a five-year term, as specified within the agreement.
ATTACHMENTS: 1) Goods and Services Agreement; 2) Specifications / Bid Proposal;
3) Bid Tabulation Sheet
FISCAL IMPACTS (Include Budgeted Amount): Annual Fire / Security Alarm services will be
$26,824.90 and is included within the City’s approved Operations and Maintenance budgets.
STUDY SESSION AGENDA: ☒ Limited Presentation ☐ Full Presentation
STUDY SESSION ACTION: ☐ Consent Agenda ☐ General Business ☐ Public Hearing
RECOMMENDED MOTION: Move to approve Goods and Services Agreement with ADT
Commercial for Fire / Security Alarm Systems, Fire Suppression Systems, and Alarm Monitoring,
Testing and Maintenance in the amount of $26,824.90 per year for a five (5) year term and authorize
the Mayor to finalize and execute the agreement with substantially the same terms and conditions as
presented.
COUNCIL ACTION: Approve Deny Table Continue No Action
Form Updated 11/09/2021
A3
AGENDA BILL
CITY OF BREMERTON
CITY COUNCIL
SUBJECT: Study Session Date: March 9, 2022
Contract with Pape & Sons Construction,
Inc. for Oyster Bay Avenue Force Main
Replacement Project; and related Budget
Amendment
COUNCIL MEETING Date: March 16, 2022
Department: PW&U
Presenter: Bill Davis
Phone: (360) 473-2312
SUMMARY:
The project will install approximately 1900 linear feet of 12-inch PVC force main and approximately
330 linear feet of 15-inch PVC gravity sewer next to the existing force main. A portion of the existing
main will remain online, providing some redundancy within the system. The remainder of the existing
piping will be taken off-line and abandoned in-place. Three new air relief valves will also be installed.
Ten (10) bids were submitted, which were opened on February 24, 2022. The lowest responsive and
responsible bid was from Pape & Sons Construction, Inc. in the amount of $892,511.62, including
sales tax.
ATTACHMENTS:
1. Contract; 2. Location Map; and 3. Bid Tabulation
FISCAL IMPACTS (Include Budgeted Amount):
This is an emergent project which was not included in the 2022 Capital Improvement Plan. The
project requires a budget of $1,100,000 to be allocated from the Wastewater Fund.
STUDY SESSION AGENDA: ☒ Limited Presentation ☐ Full Presentation
STUDY SESSION ACTION: ☐ Consent Agenda ☐ General Business ☐ Public Hearing
RECOMMENDED MOTION:
Move to amend the Wastewater Capital Budget to add $1,100,000 for the Oyster Bay Avenue Force
Main Project and award the construction contract to Pape & Sons Construction, Inc. in the amount of
$892,511.62, including sales tax, and authorize the Mayor to finalize and execute the agreement with
substantially the same terms and conditions as presented.
COUNCIL ACTION: Approve Deny Table Continue No Action
Form Updated 01/02/2018
A4
BID FORMS RFB for OYSTER BAY AVENUE FORCE MAIN REPLACEMENT
FEBRUARY 2022 Page 21 of 122
CONTRACT
(Page 1 of 3)
THIS AGREEMENT is dated the day of in the year 2022 by and between City of
Bremerton (hereinafter called CITY) and ____________________________________
(hereinafter called CONTRACTOR).
CITY and CONTRACTOR, in consideration of the mutual covenants hereinafter set forth, agree
as follows:
ARTICLE 1. WORK.
CONTRACTOR shall complete the WORK as specified or indicated in the CITY's Contract
Documents entitled Oyster Bay Avenue Force Main Replacement
ARTICLE 2. CONTRACT TIMES.
The WORK shall obtain Substantial Completion within 100 calendar days of Notice to Proceed.
Time is of the essence as to each and every deadline set forth in this agreement. This
provision has been specifically negotiated.
ARTICLE 3. LIQUIDATED DAMAGES.
CITY and the CONTRACTOR recognize that time is of the essence for this Agreement and that
the CITY will suffer financial loss if the WORK is not completed within the time specified in
Article 2 herein, plus any extensions thereof allowed in accordance with Section 1-08.8 of the
Standard Specifications which may be modified by the Special Provisions. They also recognize
the delays, expense, and difficulties involved in proving in a legal proceeding the actual loss
suffered by the CITY if the WORK is not completed on time. Accordingly, instead of requiring
any such proof, the CONTRACTOR shall pay the CITY liquidated damages in the amount of
$1000 per day after the date of Substantial Completion.
ARTICLE 4. CONTRACT PRICE.
CITY shall pay CONTRACTOR for completion of the WORK in accordance with the Contract
Documents in the amount set forth in the Bid Proposal, which shall include sales tax as
provided in Section 1-07.2(2) of the Special Provisions.
ARTICLE 5. PAYMENT PROCEDURES.
CONTRACTOR shall submit Applications for Payment in accordance with Section 1-09.9 of the
Standard Specifications which may be modified by the Special Provisions. Applications for
Payment will be processed by ENGINEER as provided in the Special Provisions
_____________________
Contractor Initials
Pape & Sons Construction, Inc
BID FORMS RFB for OYSTER BAY AVENUE FORCE MAIN
REPLACEMENT FEBRUARY 2022 Page 22 of 122
CONTRACT
(Page 2 of 3)
ARTICLE 6. CONTRACT DOCUMENTS.
The Contract Documents which comprise the entire agreement between CITY and
CONTRACTOR concerning the WORK consist of this Contract and the following which are
either attached or incorporated herein by reference:
-Notice Inviting Bids,
-Bidders Checklist,
-Bid Proposal including the Proposal Forms, Information Required of Bidder, Bid Bond, and
all required certificates and affidavits,
-Performance Bond,
-Payment Bond,
-Standard Specifications,
-Amendments to the Standard Specifications,
-Appendices,
-Special Provisions,
-Contract Plans,
-Addenda numbers _____ to _____, inclusive.
-Change Orders which may be delivered or issued after Effective Date of the Agreement and
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, sub consultants, and the officers, directors,
employees, and agents of each and any of them, against and from any and all claims, injuries,
damages, losses or suits, including all legal costs and attorney fees, all claims and liability
arising under, by reason of, related, or incidental to the Contract Documents or any
performance of the WORK, but not from the sole negligence or willful misconduct of the CITY
and/or the ENGINEER as further defined in the Contract Documents. The provisions of this
section shall survive the termination of the contract.
_____________________
Contractor Initial
1 1
BID FORMS RFB for OYSTER BAY AVENUE FORCE MAIN REPLACEMENT
FEBRUARY 2022 Page 23 of 122
CONTRACT
(Page 3 of 3)
ARTICLE 8. ASSIGNMENT
No assignment by a party hereto of any rights under or interests in the Contract Documents will
be binding on another party hereto without the written consent of the party sought to be bound;
and specifically but without limitation monies that may become due and monies that are due
may not be assigned without such consent (except to the extent that the effect of this restriction
may be limited by law), and unless specifically stated to the contrary in any written consent to
an assignment, no assignment will release or discharge the assignor from any duty or
responsibility under the Contract Documents. The CITY, in its sole discretion, may refuse to
allow the CONTRACTOR to assign any or all of its duties, rights and/or responsibilities under
the Agreement, except with regards to an assignment of funds for security purposes. In the
case of an assignment for security purposes the CITY may condition its approval to the extent it
deems necessary to assure that there will be adequate funds to complete the WORK and to
pay a subcontractors and suppliers.
CITY and CONTRACTOR each binds itself, its partners, successors, assigns and legal
representatives to the other party hereto, its partners, successors, assigns and legal
representatives in respect of all covenants, agreements and obligations contained in the
Contract Documents.
IN WITNESS WHEREOF, CITY and CONTRACTOR have caused this Agreement to be
executed the day and year first above written.
CITY : City of Bremerton CONTRACTOR
(Signature) (Signature)
By Greg Wheeler, Mayor By
(Printed name) (Printed name) [CORPORATE SEAL]
Attest Attest
Address for giving notices Address for giving notices
License No.
Approved as to Form:
Agent for service of process:
(Signature)
City Attorney _______
(Title)
Pape & Sons Construction, Inc
PROJECT
LOCATION Oyster Bay Ave Oyster Bay Ave Force Main Replacement Project
(Project Number #5867)
AGENDA BILL
CITY OF BREMERTON
CITY COUNCIL
SUBJECT: Study Session Date: March 9, 2022
Public Works Agreement with Vet Industrial,
Inc. for the 2022 Sewer Pipe Repairs –
Various Locations Project
COUNCIL MEETING Date: March 16, 2022
Department: PW&U
Presenter: Bill Davis
Phone: (360) 473-2312
SUMMARY: The project will repair 2 pipe sections and install one manhole in preparation for
upcoming cure-in-place-pipe (CIPP) lining projects.
Three (3) bids were submitted, which were opened on February 24, 2022. The lowest responsive,
responsible bidder was Vet Industrial, Inc., who submitted a bid in the amount of $185,776.33
including sales tax.
ATTACHMENTS: 1. Contract; 2. Location Map; and 3. Bid Tabulation
FISCAL IMPACTS (Include Budgeted Amount): The budget amount in the 2022 Wastewater
Capital Budget for this project is $250,000.
STUDY SESSION AGENDA: ☒ Limited Presentation ☐ Full Presentation
STUDY SESSION ACTION: ☐ Consent Agenda ☐ General Business ☐ Public Hearing
RECOMMENDED MOTION:
Move to award the contract for the 2022 Sewer Pipe Repairs – Various Locations Project to Vet
Industrial, Inc. in the amount of $185,776.33 (which includes sales tax); and authorize the Mayor to
finalize and execute the agreement with substantially the same terms and conditions as presented.
COUNCIL ACTION: Approve Deny Table Continue No Action
Form Updated 01/02/2018
A5
PUBLIC WORKS AGREEMENT – Page 1 of 10
(between City of Bremerton and Vet Industrial, Inc.)
Rev. 09/2021
PUBLIC WORKS AGREEMENT
THIS AGREEMENT is entered into between the City of Bremerton, a Washington
Municipal Corporation (“City”), and Vet Industrial, Inc. (“Contractor”), whose mailing address
is 1234 Charleston Beach Road, Suite B, Bremerton, WA 98312.
The parties agree as follows:
1.CONTRACTOR SERVICES. The Contractor shall perform the following
services for the City described in the Bid Documents titled: 2022 Sewer Pipe Repairs –
Various Locations.
2. TIME OF COMPLETION. Contractor shall complete the work within 90
calendar days from the date of issuance of the City’s Notice to Proceed.
3. COMPENSATION. The City shall pay the Contractor the total amount of
$185,776.33, including applicable Washington State Sales Tax, for the work and services
contemplated in this agreement. The Contractor shall invoice the City monthly. The City will
pay for the portion of the work described in the invoice that has been completed by the Contractor
and approved by the City. The City payment shall not constitute a waiver of the City’s right to
final inspection and acceptance of the project.
A.Performance Bond. Pursuant to Chapter 39.08 RCW, the Contractor shall
provide the City a performance bond for the full contract amount to be in
effect until thirty (30) days after the date of final acceptance, or until
receipt of all necessary releases from the State Department of Revenue
and the State Department of Labor and Industries and until settlement of
any liens filed under Chapter 60.28 RCW, whichever is later.
B.Retainage. The City shall hold back a retainage in the amount of five
percent (5%) of any and all payments made to contractor for a period of
thirty (30) days after the date of final acceptance, or until receipt of all
necessary releases from the State Department of Revenue and the State
Department of Labor & Industries and until settlement of any liens filed
under Chapter 60.28 RCW, whichever is later.
C.Defective or Unauthorized Work. The City reserves its right to withhold
payment from Contractor for any defective or unauthorized work.
Defective or unauthorized work includes, without limitation: work and
materials that do not conform to the requirements of this agreement; and
extra work and materials furnished without the City’s written approval. If
Contractor is unable, for any reason, to satisfactorily complete any portion
of the work, the City may complete the work by contract or otherwise, and
Contractor shall be liable to the City for any additional costs incurred by
the City. “Additional costs” shall mean all reasonable costs, including
legal costs and attorney fees, incurred by the City beyond the maximum
PUBLIC WORKS AGREEMENT – Page 2 of 10
(between City of Bremerton and Vet Industrial, Inc.)
Rev. 09/2021
Contract price specified above. The City further reserves its right to
deduct the cost to complete the Contract work, including any Additional
Costs, from any and all amounts due or to become due the Contractor.
D.Final Payment: Waiver of Claims. THE MAKING OF FINAL
PAYMENT (EXCLUDING WITHHELD RETAINAGE) SHALL
PRECLUDE ALL CLAIMS, EXCEPT THOSE PREVIOUSLY AND
PROPERLY MADE AND IDENTIFIED BY CONTRACTOR AS
UNSETTLED AT THE TIME REQUEST FOR FINAL PAYMENT IS
MADE.
4.INDEPENDENT CONTRACTOR. Contractor is and shall be at all times
acting as an independent contractor and not as an employee of the City. The Contractor shall
secure at its expense, and shall be responsible for all payments of income tax, social security,
state disability insurance compensation, unemployment compensation, and all other payroll
deductions for the Contractor, officer, agents, employees and sub-contractors. The Contractor
shall also secure all applicable business licenses, if required, in connection with the contract
services, including all required licenses for Contractor's officers, agents, employees and sub-
contractors.
5.TERMINATION. The City may terminate this agreement for good cause.
“Good cause” shall include, without limitation, any one or more of the following events:
A.The Contractor’s refusal or failure to supply a sufficient number of
properly skilled workers or proper materials for completion of the
Contract work.
B.The Contractor’s failure to complete the work within the time specified in
this agreement.
C.The Contractor’s failure to make full and prompt payment to sub-
contractors or for material or labor.
D.The Contractor’s persistent disregard of federal, state or local laws, rules
or regulations.
E. The Contractor’s filing for bankruptcy or becoming adjudged bankrupt.
If the City terminates this agreement for good cause, the Contractor shall not receive any
further monies due under this agreement until the Contract work is completed.
6.PREVAILING WAGES. Contractor shall file a “Statement of Intent to Pay
Prevailing Wages” with the State of Washington Department of Labor & Industries prior to
commencing the Contract work. Contractor shall pay prevailing wages and comply with Chapter
39.12 of the Revised Code of Washington, as well as any other applicable prevailing wage rate
PUBLIC WORKS AGREEMENT – Page 3 of 10
(between City of Bremerton and Vet Industrial, Inc.)
Rev. 09/2021
provisions. The latest prevailing wage rate revision issued by the Department of Labor and
Industries is attached.
7. CHANGES. The City may issue a written work change directive for any change
in the Contract work during the performance of this agreement. If the Contractor determines, for
any reason, that a change order is necessary, Contractor must submit a written change order
request to the City’s project manager within two (2) business days of the date the Contractor
knew or should have known of the facts and events giving rise to the requested change. If the
City determines that the change increases or decreases the Contractor’s costs or time for
performance, the City will make an equitable adjustment. The City will attempt, in good faith, to
reach agreement with the Contractor on all equitable adjustments. However, if the parties are
unable to agree, the City will determine the equitable adjustment as it deems appropriate. The
Contractor shall proceed with the change order work upon receiving a written work change
directive or change order from the City. If the Contractor fails to require a change order within
the time allowed, the Contractor waives its right to make any claim or submit subsequent change
order requests for that portion of the contract work. If the Contractor disagrees with the
equitable adjustment the Contractor must complete the change order work; however, the
Contractor may elect to protest the adjustment as provided below:
A. Procedure and Protest by the Contractor. If the Contractor disagrees with
anything required by a work change directive or change order, including
any direction, instruction, interpretation, or determination by the City, the
Contractor shall:
1. Immediately give a signed written notice of protest to the City;
2. Supplement the written protest within fourteen (14) calendar days
with a written statement that provides the following information:
a. The date of the Contract’s protest.
b. The nature and circumstances that caused the protest.
c. The provisions in this agreement that support the protest.
d. The estimated dollar cost, if any, of the protested work and
how that estimate was determined.
e. An analysis of the progress schedule showing the schedule
change or disruption if the Contractor is asserting a
schedule change or disruption.
The Contractor shall keep complete records of extra costs and time
incurred as a result of the protested work. The City shall have
access to any of the Contractor’s records needed for evaluating the
protest.
3. The City will evaluate all protests, provided the procedures in this
section are followed. If the City determines that a protest is valid,
PUBLIC WORKS AGREEMENT – Page 4 of 10
(between City of Bremerton and Vet Industrial, Inc.)
Rev. 09/2021
the City will adjust payment for work or time by an equitable
adjustment. No adjustment will be made for an invalid protest.
B. Contractor’s Duty to Complete Protested Work. In spite of any protest,
the Contractor shall proceed promptly with the work as the City has
ordered.
C. Contractor’s Acceptance of Changes. The Contractor accepts all
requirements of a change order by: (1) endorsing it, (2) writing a separate
acceptance, or (3) not protesting in the way this section provides. A
change order that is accepted by Contractor as provided in this section
shall constitute full payment and final settlement of all claims for contract
time and for direct, indirect and consequential costs, including costs of
delays related to any work, either covered or affected by the change.
D. Failure to Protest Constitutes Waiver. By not protesting as this section
provides, the Contractor also waives any additional entitlement and
accepts from the City any written order (including directions, instructions,
interpretations, and determination).
E. Failure to Follow Procedures Constitutes Waiver. By failing to follow the
procedures of this section, the Contractor completely waives any claims
for protested work and accepts form the City any written order (including
directions, instructions, interpretations, and determination).
8. CLAIMS. The Contractor shall give written notice to the City of all claims other
than change orders within fourteen (14) calendar days of the occurrence of the events giving rise
to the claims. Any claim for damages, additional payment for any reason, or extension of time,
whether under this agreement or otherwise, shall be conclusively deemed to have been waived
by the Contractor unless a timely written claim is made in strict accordance with the applicable
provisions of this agreement; or, if (and only if) no such provision is applicable, unless that claim
is set forth in detail in writing and received by the City within seven (7) calendar days from the
date Contractor knew, or should have known, of the facts giving rise to the claim. At a
minimum, a Contractor’s written claim must include the information set forth regarding protests
in Section 7.A.2.a.-e.
FAILURE TO PROVIDE A COMPLETE, WRITTEN NOTIFICATION OF CLAIM
WITHIN THE TIME ALLOWED SHALL BE AN ABSOLUTE WAIVER OF ANY CLAIMS
ARISING IN ANY WAY FROM THE FACTS OR EVENTS SURROUNDING THAT CLAIM
OR CAUSED BY THAT DELAY.
Contractor must, in any event, file any claim or bring any suit arising from or connected
with this agreement within 120 calendar days from the date the contract work is complete.
9. WARRANTY. The Contractor shall correct all defects in workmanship and
materials within one year from the date of the City’s acceptance of the Contract work. When
PUBLIC WORKS AGREEMENT – Page 5 of 10
(between City of Bremerton and Vet Industrial, Inc.)
Rev. 09/2021
defects are corrected, the warranty for that portion of the work shall extend for one year form the
date such correction is completed and accepted by the City. The Contractor shall begin to
correct any defects within seven (7) calendar days of its receipt of notice from the City of the
defect. If the Contractor does not accomplish the corrections within a reasonable time, the City
may complete the corrections and the Contractor shall pay all costs incurred by the City in order
to accomplish the correction.
10. INDEMNIFICATION. Contractor shall defend, indemnify and hold the City, its
officer, officials, employees, agents and volunteers harmless from any and all claims, injuries,
damages, losses or suits including all legal costs and attorney fees, arising out of or in connection
with the performance of this agreement, except for injuries and damages caused by the City’s
sole negligence.
The City’s inspection or acceptance of any of Contractor’s work when completed shall
not be grounds to avoid any of these covenants of indemnification.
Should a court of competent jurisdiction determine that this agreement is subject to RCW
4.24.115, then, in the event of liability for damages arising out of bodily injury to persons or
damages to property caused by or resulting from the concurrent negligence of the Contractor and
the City, its officials, employees, agents and volunteers, the Contractor’s liability hereunder shall
be only to the extent of the Contractor’s negligence.
IT IS FURTHER SPECIFICALLY AND EXPRESSLY UNDERSTOOD THAT THIS
INDEMNIFICATION CONSTITUTES THE CONTRACTOR’S WAIVER OF IMMUNITY
UNDER INDUSTRIAL INSURANCE, TITLE 51 RCW, SOLELY FOR THE PURPOSE OF
THIS INDEMNIFICATION. THE PARTIES ACKNOWLEDGE THAT THEY HAVE
MUTUALLY NEGOTIATED THIS WAIVER.
The provisions of this section shall survive the expiration or termination of this
agreement.
11. INSURANCE. The Contractor shall procure and maintain for the duration of this
agreement insurance of the types and in the amounts described below against claims for injuries
to persons or damage to property which may arise from or in connection with the performance of
the work by the Contractor, its agents, representative, employees, sub-consultants or sub-
contractors.
Before beginning work on the project described in this agreement, the Contractor shall
provide a Certificate of Insurance evidencing:
A. Automobile Liability insurance with limits no less than $1,000,000
combined single limit per accident for bodily injury and property damage;
and
B. Commercial General Liability insurance written on an occurrence basis
with limits no less than $1,000,000 combined single limit per occurrence
PUBLIC WORKS AGREEMENT – Page 6 of 10
(between City of Bremerton and Vet Industrial, Inc.)
Rev. 09/2021
and $2,000,000 general aggregate for personal injury, bodily injury and
property damage. Coverage shall include but not be limited to: blanket
contractual; products/completed operations/broad form property damage;
explosion, collapse and underground (XCU); and
C. Excess Liability insurance with limits not less than $1,000,000 per
occurrence and aggregate; and
D. Workers Compensation insurance as statutorily required by the Industrial
Insurance Act of the State of Washington, Title 51, Revised Code of
Washington and employer's liability with limits not less than $1,000,000.
Any payment of deductible or self-insured retention shall be the sole responsibility of
the Contractor.
The City, its officials, employees, agents and volunteers shall be named as an
additional insured on the insurance policy, as respects work performed by or on behalf of the
Contractor and a copy of the endorsement naming the City as additional insured shall be attached
to the Certificate of Insurance.
The Contractor’s insurance shall contain a clause stating that coverage shall apply
separately to each insured against whom claim is made or suit is brought, except with respects to
the limits of the insurer’s liability.
The Consultant's insurance shall be primary and non-contributory insurance as respects
the City and shall contain a waiver of subrogation against the City for claims arising out of any
operations, liabilities and obligations to which coverage applies. It shall be an affirmative
obligation upon Consultant to advise the City’s Risk Manager by fax at (360) 473-5161, or by
certified mail, return receipt requested to City of Bremerton, attn: Risk Management, 345 6th
Street, Suite 100, Bremerton, WA 98337 within two days of the cancellation, suspension or
substantive change of any insurance policy set out herein, and failure to do so shall be construed
to be a breach of this Agreement.
The City reserves the right to receive a certified copy of all the required insurance
policies.
12. MISCELLANEOUS.
A. Equal Employment Opportunity Statement. In the hiring of employees for
the performance of work under this Agreement, the Contractor, its subcontractors, or any person
acting on behalf of Contractor shall not discriminate in any employment practice on the basis of
age (40+), sex, race, creed, color, national origin, sexual orientation/gender identity, marital
status, military status, or the presence of any physical, mental or sensory disability.
B. ADA Statement. The City of Bremerton does not discriminate on the
basis of disability in programs and activities, which it operates pursuant to the requirements of
the Americans with Disabilities Act of 1990, and ADA Amendments Act. This policy extends to
PUBLIC WORKS AGREEMENT – Page 7 of 10
(between City of Bremerton and Vet Industrial, Inc.)
Rev. 09/2021
both employment and admission to participation in the programs, services and activities of the
City of Bremerton. Reasonable accommodation for employees or applicants for employment
will be provided.
C. Compliance with Laws. Contractor shall comply with all federal, state
and local laws, rules and regulations throughout every aspect in the performance of this
agreement.
D. Work Performed at Contractor’s Risk. Contractor shall take all
precautions necessary and shall be responsible for the safety of its employees, agents, and
subcontractors in the performance of this agreement. All work shall be done at Contractor’s own
risk, and Contractor shall be responsible for any loss of or damage to materials, tools, or other
articles used or held for use in connection with the work.
E. Nonwaiver of Breach. The failure of the City to insist upon strict
performance of any of the terms and rights contained herein, or to exercise any option herein
conferred in one or more instances, shall not be constructed to be a waiver or relinquishment of
those terms and rights and they shall remain in full force and effect
F. Governing Law. This agreement shall be governed and construed in
accordance with the laws of the State of Washington. If any dispute arises between the City and
Contractor under any of the provisions of this agreement, resolution of that dispute shall be
available only through the jurisdiction, venue and rules of the Kitsap County Superior Court,
Kitsap County, Washington.
G. Attorney’s Fees. To the extent not inconsistent with RCW 39.04.240, in
any claim or lawsuit for damages arising from the parties’ performance of this agreement, each
party shall be responsible for payment of its own legal costs and attorney’s fees incurred in
defending or bringing such claim or lawsuit; however, nothing in this subsection shall limit the
City’s right to indemnification under Section 10 of this agreement.
H. Written Notice. All communications regarding this agreement shall be
sent to the parties at the addresses listed on the signature page of this agreement, unless
otherwise notified. Any written notice shall become effective upon delivery, but in any event
three (3) calendar days after the date of mailing by registered or certified mail, and shall be
deemed sufficiently given if sent to the addressee at the address stated on this agreement.
I. Assignment. Any assignment of this agreement by the Contractor without
the written consent of the City shall be void.
J. Modification. No waiver, alteration, or modification of any of the
provisions of this agreement shall be binding unless in writing and signed by a duly authorized
representative of the City and Contractor.
K. Severability. If any one or more sections, sub-sections, or sentences of
this agreement are held to be unconstitutional or invalid, that decision shall not affect the validity
PUBLIC WORKS AGREEMENT – Page 8 of 10
(between City of Bremerton and Vet Industrial, Inc.)
Rev. 09/2021
of the remaining portion of this agreement and the remainder shall remain in full force and
effect.
L. Entire Agreement. The written provisions and terms of this agreement,
together with any attached Exhibits, supersede all prior verbal statements by any representative
of the City, and those statements shall not be construed as forming a part of or altering in any
manner this agreement. This agreement and any attached Exhibits contain the entire agreement
between the parties. Should any language in any Exhibit to this agreement conflict with any
language contained in this agreement, the terms of this agreement shall prevail.
IN WITNESS WHEREOF, the parties below have executed this agreement.
VET INDUSTRIAL, INC. THE CITY OF BREMERTON
Print Name: Ike Holmes Print Name: Greg Wheeler________
Title: President ______ Title: Mayor___________________
DATE DATE
Notices to be sent to: Notices to be sent to:
VET INDUSTRIAL, INC.: CITY OF BREMERTON:
Paula L. Sunkel Michele Filley
1234 Charleston Beach Rd. Suite B 345 6th Street, Suite 100
Bremerton, WA 98312 Bremerton, WA 98337
(360) 377-2955 (360) 473-2349
APPROVED AS TO FORM:
Kylie J. Finnell
Bremerton City Attorney
ATTEST:
Angela Hoover, City Clerk
R:\Legal\Legal\Forms\FORMS ON COBWEB\Public Works Agreement (short form) Rev. 09 2021.doc
2/25/22 pg. 1
2022 Sewer Rehabilitation – Sewer Pipe Repairs – Various Locations (#5846.2)
6th ST
NAVAL AVE (2)
WARREN AVE (1)
Legend:
1) New manhole installation
2) Replace pipe section
ROBIN AVE (2) Naval Ave
BID TITLE:
SECOND LOW BIDDER Nova Contracting
THIRD LOW BIDDER Active Construction, Inc
DATE
OPENED:
RECORDED
BY:
$83,930 ENGINEER ESTIMATE (INC SALES TAX)
APPARENT LOW BIDDER Vet Industrial, Inc.
SUMMARY
Active Construction, Inc √ $262,262.00
Vet Industrial, Inc.√ $185,776.33
Nova Contracting √ $246,340.00
CITY OF BREMERTON
BID TABULATION
BOND BASE BID + CONTINGENCY SALES TAX TOTALNAME OF BIDDER
OPENED
BY:
2/24/2022 TIME
OPENED:
2022 Sewer Pipe Repairs - Various Locations
2:30 PM Noreen Bolo
Michele Filley
AGENDA BILL
CITY OF BREMERTON
CITY COUNCIL
SUBJECT: Study Session Date: March 9, 2022
Proposed Public Hearing (1st of 2) on the 2nd
Amendment to the Concession Agreement
with Olympic Soccer & Sports Center, LLC
COUNCIL MEETING Date: March 16, 2022
Department: Parks & Recreation
Presenter: Jeff Elevado
Phone: (360) 473-5428
SUMMARY:
On October 30, 2006, the City entered into the “First Amended Concession Agreement” with Olympic
Soccer & Sports Center, LLC for the ground and use concession agreement for the privately owned
indoor soccer and sports facility located at Pendergast Regional Park. The City was notified on
February 1, 2022 that the current owners had entered into a Purchase and Sale Agreement with
Evolution Soccer, LLC for the sale of the business and building. OSSC wishes to assign the
concession agreement to Evolution Soccer, LLC and Evolution Soccer, LLC desires to increase the
number of options to renew the agreement to meet requirements of their funding institution. This
Amendment, if approved, will assign the Concession Agreement to Evolution Soccer, LLC and add
an additional 10-year renewal option to the current agreement. The Bremerton Parks and Recreation
Commission has reviewed the request and recommended approval by City Council at their February
22nd, 2022, public meeting.
Ownership of the underlying property upon which the building and business is located will remain
with the City.
ATTACHMENTS:
1) Second Amendment to the Concession Agreement Between City of Bremerton and OSSC
2) Assignment of Concession Agreement 2022
3) First Amended “Concession Agreement Between City of Bremerton and OSSC”
4) 2/1/2022 Notification Letter from Dennis Michael of OSSC
5) 2/23/2022 Bremerton Parks & Recreation Commission Advisory Report
FISCAL IMPACTS (Include Budgeted Amount):
No fiscal impacts, consideration remains unchanged.
STUDY SESSION AGENDA: ☒ Limited Presentation ☐ Full Presentation
STUDY SESSION ACTION: ☐ Consent Agenda ☐ General Business ☒ Public Hearing (1 of 2)
RECOMMENDED MOTION:
Public Comment Only with No Action
COUNCIL ACTION: Approve Deny Table Continue No Action
Form Updated 11/09/2021
A6
Second Amendment to the Concession Agreement Between City of Bremerton and Olympic
Soccer & Sports Center, LLC
This Second Amendment to the “Concession Agreement Between City of Bremerton (CITY) and
Olympic Soccer & Sports Center, LLC (OSSC)” specifically amends the “First Amended
Concession Agreement (Agreement) entered into between the City of Bremerton and Olympic
Soccer & Sports Center, LLC” on October 30, 2006.
WHEREAS, OSSC is the current concessionaire and desires to assign its concession agreement to
Evolution Soccer, LLC, and
WHEREAS, the CITY has agreed to the assignment of the concession agreement to Evolution
Soccer, LLC, and
WHEREAS, Evolution Soccer, LLC desires to increase the number of options to renew the
Agreement, and
WHEREAS, the CITY has agreed to add an additional 10-year renewal option;
NOW, THEREFORE, for valuable consideration and by mutual consent of the parties the
Agreement is hereby amended as follows:
Any and all references to Olympic Soccer & Sports Center, LLC and/or OSSC are replaced with
Evolution Soccer, LLC.
Section 2.2 Option to Renew is replaced in its entirety to read as follows:
2.2 Option to Renew. The CITY agrees to offer the CONCESSIONAIRE four (4)
successive ten (10) year options to renew this Agreement, contingent upon:
1) CONCESSIONAIRE remaining in full compliance with the terms and
conditions of this Agreement; and
2) the City accepting the level of insurance coverage required in Article
8.5.2 for each new ten (10) year term exercised by CONCESSIONAIRE, which
acceptance will not be unreasonably denied. Each ten (10) year option to renew
shall renew automatically unless CONCESSIONAIRE give CITY prior written
notice of its desire not to renew or the CITY gives CONCESSIONAIRE prior
written notice of CONCESSIONAIRE’s failure to be in full compliance with the
terms and conditions of this Agreement in which case the CONCESSIONAIRE
shall be given the opportunity to cure such default pursuant to Article 7.2. The
CONCESSIONAIRE may terminate this Agreement at any time with prior written
notice to the CITY. The CITY may request a review of insurance coverage required
in Article 8.5.2 pursuant to Article 3.1.2. The CITY may request
CONCESSIONAIRE to cure any default and come into full compliance with the
terms and conditions of this Agreement at any time pursuant to Article 7.2. The
FAILURE OF CONCESSIONAIRE to provide prior written notice not to renew or
failure of the CITY to accept the level of insurance coverage or cure any default or
request full compliance with the terms and conditions of this Agreement shall not
constitute a waiver by either party.
Section 3.1.1 Cash and Premises Use is replaced in its entirety to read as follows:
3.1.1 Cash and Premises Use. As consideration for the ground and use concession
granted by the CITY to the CONCESSIONAIRE by Article 1 herein, the
CONCESSIONAIRE shall provide fair and equitable compensation to the CITY in
the form of cash payments and hours of use of the Premises, subject to Article 3.1.4
of this Agreement. Premises use by the CITY shall be governed by Article 3.3
herein. Consideration shall be established pursuant to a formula including the
square footage value of the Concession Area parking use outdoor lighting costs and
hours of use of the Premises by the City as set forth in Exhibit C. Based upon
Exhibit C the CONCESSIONAIRE shall provide the CITY with an annual total of
150 hours of Premises use and further shall pay the CITY One Thousand Two
Hundred Ninety-Five Dollars and Sixty-nine Cents ($1295.69) per month. The
Premises use shall be per hour per field; said kinds of use to be determined at the
sole discretion of the CITY. The monthly cash payment shall be adjusted every year
during the term(s) of this Agreement based upon the prior year’s Consumer Price
Index (CPI) for all urban consumers as published by the United States Department
of Labor for Seattle Tacoma Bremerton all items (1982-84-100). For purposes of
the CPI adjustment the base shall be the June 2021 CPI index June to June every
year (i.e. June 2021- June 2022). The CPI adjustment shall occur on the following
January 1st of each year during the term of this Agreement. No adjustment whether
an increase or a decrease shall exceed two percent (2%) annually.
CONCESSIONAIRE shall make this payment to the City by the fifteenth day of
the month following the end of each month. CONCESSIONAIRE may prepay these
monthly payments on a quarterly, semi-annual, or annual basis or as otherwise
approved by the CITY.
Section 8.2 Notices is replaced in its entirety to read as follows:
8.2 Notices. Except as provided in Article 6 herein, any notice required or permitted
hereunder must be in writing and will be effective upon the earlier of personal
delivery or three days after being mailed by certified mail, return receipt requested,
addressed to CONCESSIONAIRE or to CITY at the address for that party
designated herein. Either party may specify a different address for notice purposes
by written notice to the other, except that CITY may in any event use the Premises
as CONCESSIONAIRE’s address for notice purposes. All notices shall be
delivered to the following addresses:
CITY Address: CONCESSIONAIRE Address:
City of Bremerton Evolution Soccer, LLC
Attn: Director of Parks and Recreation Attn:_____________________
680 Lebo Boulevard _________________________
Bremerton, WA 98310 _________________________
All other terms and conditions of the “First Amended Concession Agreement (Agreement)
entered into between the City of Bremerton and Olympic Soccer & Sports Center, LLC’ on
October 30, 2006 not specifically amended herein remain in full force and effect.
[NOTARY ACKNOWLEDGEMENTS ON NEXT PAGE]
STATE OF WASHINGTON )
)
COUNTY OF KITSAP )
I certify that I know or have satisfactory evidence that ______________________ is the
person(s) who appeared before me, and said person(s) acknowledged that he/she/they signed
this instrument and acknowledged it to be his/her/their free and voluntary act for the uses and
purposes mentioned in the instrument.
GIVEN under my hand and official seal this ______ day of ______________________,
20_____.
_________________________________
Notary Public in and for the State of
Washington, residing at________________
My appointment expires_______________
ACCEPTED this ______ day of ______________________, 20_____.
EVOLUTION SOCCER, LLC
By________________________
STATE OF WASHINGTON )
)
COUNTY OF KITSAP )
I certify that I know or have satisfactory evidence that________________________ is
the person(s) who appeared before me, and said person(s) acknowledged that he/she/they signed
this instrument and acknowledged it to be his/her/their free and voluntary act for the uses and
purposes mentioned in the instrument.
GIVEN under my hand and official seal this ______ day of ______________________,
20_____.
_________________________________
Notary Public in and for the State of
Washington, residing at________________
My appointment expires_______________
ACCEPTED this ______ day of ______________________, 20_____.
CITY OF BREMERTON
By__________________________
GREG WHEELER, Mayor
DEPARTMENTAL APPROVAL APPROVED AS TO FORM
_____________________________ _____________________________
JEFF ELEVADO, Director KYLIE J. FINNELL, City Attorney
Parks & Recreation
ATTEST:
ANGELA HOOVER, City Clerk
1
ASSIGNMENT OF CONCESSION AGREEMENT
THIS ASSIGNMENT OF CONCESSION AGREEMENT assigns the First Amended
Concession Agreement between the City of Bremerton and Olympic Soccer & Sports Center,
LLC (“Concession Agreement”) dated October 30, 2006, and is entered into by and between
Olympic Soccer & Sports Center, LLC, a Washington limited liability company (“OSSC”), and
Evolution Soccer, LLC, a Washington limited liability company ("EVOLUTION").
WHEREAS, by the Concession Agreement the City of Bremerton (the "City") granted a
concession to OSSC for the premises legally described in Exhibit A, attached hereto and
incorporated herein by this reference; and
WHEREAS, OSSC desires to assign to EVOLUTION, and EVOLUTION desires to
assume, all of OSSC's rights and obligations under the Concession Agreement with the consent
of the City.
NOW THEREFORE, in consideration of the mutual covenants contained herein and
other valuable consideration received, and with the intent to be legally bound, the parties agree
as follows:
1. OSSC hereby assigns the Concession Agreement and all of its rights, title and interest
thereunder to EVOLUTION. EVOLUTION hereby accepts such assignment. EVOLUTION
shall have all of the rights of OSSC under the Concession Agreement including, without
limitation, any option to renew or extend the Concession Agreement, option to purchase the
Premises and right to the security deposit now held by the City, should any of the foregoing
exist.
2. EVOLUTION hereby assumes and agrees to be bound by all of OSSC's obligations
under the Concession Agreement. EVOLUTION shall perform all the terms, covenants and
conditions of the Concession Agreement, including the payment of rent and any other required
amounts to the City, after the date hereof.
3. EVOLUTION shall indemnify and hold OSSC harmless from any and all claims,
damages, expenses and liabilities of whatever nature, including attorney's fees, arising under the
Concession Agreement or relating to the Premises after the date hereof.
4. EVOLUTION shall not assign the Concession Agreement any further or sublet all or
any portion of the Premises without the prior written consent of the City, except as authorized
pursuant to Section 8.7 of the Concession Agreement.
5. Except as specifically modified herein, the Concession Agreement will continue in
full force and effect.
6. This Assignment shall be binding upon and shall inure to the benefit of the parties and
their respective heirs, legal representatives, successors and assigns.
2
CONSENT OF CITY TO ASSIGNMENT
The City hereby consents to the above Assignment of Concession Agreement from OSSC
to EVOLUTION. By executing this Assignment of Concession Agreement, the City is only
consenting to assignment of the Concession Agreement and does not assume any obligations of
OSSC or EVOLUTION with respect to the Assignment.
THIS AGREEMENT requires the signature of all parties and is executed as of the date of
the last signature below.
[NOTARY ACKNOWLEDGMENTS ON NEXT PAGE]
3
STATE OF WASHINGTON )
)
COUNTY OF KITSAP )
I certify that I know or have satisfactory evidence that _________________________ is
the person(s) who appeared before me, and said person(s) acknowledged that he/she/they signed
this instrument and acknowledged it to be his/her/their free and voluntary act for the uses and
purposes mentioned in the instrument.
GIVEN under my hand and official seal this ______ day of ______________________,
20_____.
_________________________________
Notary Public in and for the State of
Washington, residing at________________
My appointment expires_______________
ACCEPTED this ______ day of ______________________, 20_____.
OLYMPIC SOCCER & SPORTS CENTER, LLC
By:
Its:
4
STATE OF WASHINGTON )
)
COUNTY OF KITSAP )
I certify that I know or have satisfactory evidence that _________________________ is
the person(s) who appeared before me, and said person(s) acknowledged that he/she/they signed
this instrument and acknowledged it to be his/her/their free and voluntary act for the uses and
purposes mentioned in the instrument.
GIVEN under my hand and official seal this ______ day of ______________________,
20_____.
_________________________________
Notary Public in and for the State of
Washington, residing at________________
My appointment expires_______________
ACCEPTED this ______ day of ______________________, 20_____.
EVOLUTION SOCCER, LLC
By:
Its:
5
STATE OF WASHINGTON )
)
COUNTY OF KITSAP )
I certify that I know or have satisfactory evidence that _________________________ is
the person(s) who appeared before me, and said person(s) acknowledged that he/she/they signed
this instrument and acknowledged it to be his/her/their free and voluntary act for the uses and
purposes mentioned in the instrument.
GIVEN under my hand and official seal this ______ day of ______________________,
20_____.
_________________________________
Notary Public in and for the State of
Washington, residing at________________
My appointment expires_______________
ACCEPTED this ______ day of ______________________, 20_____.
CITY OF BREMERTON
By:
Its: Mayor
EXHIBIT "A"
Legal Description for Soccer Concession at Pendergast Park
A portion of the Northeast quarter of the Southwest quarter, Section 21, Township 24 North,
Range 1 East, Williamette Meridian, which is more particularly described as follows:
Beginning at the East quarter corner of said Section 21; thence along the East-West
centerline of said Section 21, N 88°50'50" W 5316.00 feet to the West quarter corner of
said Section 21; thence S 65°16'01" E 2125.47 feet to an existing corner of the building for
Olympic Sports and Soccer Center, also being the True Point of Beginning; thence along
said building, N 89'18'55" E 100.42 feet; thence S 0'48'13" E 44.56 feet; thence N
89011'47" E 54.86 feet; thence S 0°49'09" E 113.85 feet; thence S 89°17'18" W 54.89
feet; thence S 0'15'19"E 52.06 feet; thence leaving said building S 0015'19" E 14.62 feet;
thence S 89°14'46" W 199.87 feet; thence N 0°46'54" W 200.00 feet; thence N 89°18'55"
E 100.00 feet to the said building for Olympic Sports and Soccer Center; thence along said
building, N 0°46'54" W 25.24 feet to the True Point of Beginning.
Together with and subject to a 15 foot maintenance and access buffer adjacent to and
abutting above described concession.
Together with ingress and egress to and from the public right of way (Union Avenue)
over and upon the City parks properties and roadway to the above described concession.
Said ingress and egress shall terminate with said concession.
Said concession area to constitute 48,829 square feet, and with said maintenance and
access buffer, 64,157 square feet.
FIRST AMENDED
CONCESSION AGREEMENT BETWEEN THE CITY OF BREMERTON
AND OLYMPIC SOCCER SPORTS CENTER LLC
This First Amended Concession Agreement between the City of Bremerton CITY and Olympic
Soccer Sports Center LLC CONCESSIONAIRE specifically amends the Concession
Agreement entered into between the parties on June 20 2001 Concession Agreement
collectively referred to hereinafter as Agreement
WHEREAS CONCESSIONAIRE desires to construct an addition to the current structure to add
a second indoor playing field to the facility and
WHEREAS the CITY has agreed to amend the Concession Agreement to grant additional space
to the concession for the second indoor playing field
NOW THEREFORE for valuable consideration and by mutual consent of the parties the
Concession Agreement is hereby amended and replaced in its entirety to read in full as follows
ARTICLE 1 CONCESSION
1 1 Concession of Premises
1 1 1 Premises Described CITY hereby grants a ground and use concession to
CONCESSIONAIRE for the Premises approximately fifty thousand square feet 50 000 sq ft
ofland hereinafter referred to as Concession Area within the confines of the Pendergast
Regional Park and legally described in Exhibit A attached hereto and incorporated by reference
This concession is granted for the development construction maintenance and operation for
profit of an indoor athletic facility consisting a permanent structure of approximately fifty
thousand square feet 50 000 sq ft as well as for related fixtures appurtenances parking and
exterior landscaping hereinafter referred to as Improvements and generally shown in the
preliminary building and site plan in Exhibit B attached hereto and incorporated by reference
Collectively referred to as Premises Premises does not include the fee ownership or leasehold
interest of the real property upon which the Premises are located
CONCESSIONAIRE hereby agrees to the terms and conditions of this Agreement The
PARTIES agree that upon the date of execution of this First amended Concession Agreement
the Premises consists of permanent structure of approximately thirty thousand square feet
30 000 sq ft and related improvements and that the CONCESSIONAIRE intends to construct
an addition of approximately twenty thousand square feet 20 000 sq ft to the current structure
to add a second indoor playing field to the Premises Second Field The PARTIES further
agree that any and all current or future development and construction of Improvements on the
Premises are owned by CONCESSIONAIRE subject to any security interest oflender if any
and subject to the CITY s right title and interest at the expiration or termination of this
Agreement pursuant to Article 24
I
The common address of the Premises is 1199 Union Avenue Bremerton WA 98312
1 1 2 Right of Entry In addition to the Premises described above the CITY grants
CONCESSIONAIRE 1 a Right of Entry for ingress and egress to and from the public right of
way Union Avenue over and upon the City parks properties and roadway to access the
Premises and 2 a 15 foot Right of Entry buffer adj acent to and abutting above described
Concession Area for maintenance and repair of the Improvements as identified in Exhibit B
Collectively Rights of Entry CONCESSIONAIRE s use of the Rights of Entry granted
herein shall not be used in a manner inconsistent with or interfere with the CITY s use of the
property CONCESSIONAIRE shall not install any structures or other improvements on the
Rights of Entry without the CITY s prior written approval Such approval shall be at the CITY s
sole discretion The Rights of Entry shall terminate upon the expiration or termination of this
Agreement
1 2 Possession Quiet Enjoyment Covenants
Except as provided in Articles 3 4 3 herein the CONCESSIONAIRE shall be entitled
to exclusive possession of the Premises upon commencement of the development and
construction of the Premises as defined by Article 54 herein Upon taking possession of the
Premises and on performing all the covenants and conditions herein the CONCESSIONAIRE
shall peaceably and quietly have hold and enjoy the Premises at all times during the full term of
this Agreement Every covenant in this Agreement shall be deemed and treated to be a covenant
running with the Premises during the full term of the Agreement and shall extend to the heirs
legal representatives successors and assigns of the PARTIES No change in CITY s ownership
of the Premises or rights to the payments hereunder however accomplished shall operate to
enlarge the obligations or reduce the rights of CONCESSIONAIRE No change in CITY s
ownership of the Premises shall be binding upon CONCESSIONAIRE for any purpose until
CONCESSIONAIRE shall have been given notice thereof
ARTICLE 2 TERM OF AGREEMENT
2 1 Term The term of this Agreement shall be fifteen 15 years commencing June 20 2001
the EFFECTNE DATE of this Agreement
2 2 Option to Renew The CITY agrees to offer the CONCESSIONAIRE three 3 successive
ten 10 year options to renew this Agreement contingent upon
1 CONCESSIONAIRE remaining in full compliance with the terms and conditions
of this Agreement and
2 the CITY accepting the level of insurance coverage required in Article 8 5 2 for
each new ten 10 year term exercised by CONCESSIONAIRE which acceptance will not be
unreasonably denied Each ten 10 year option to renew shall renew automatically unless
CONCESSIONAIRE gives the CITY prior written notice of its desire not to renew or the CITY
gives CONCESSIONAIRE prior written notice of CONCESSIONAIRE s failure to be in full
compliance with the terms and conditions of this Agreement in which case the
CONCESSIONAIRE shall be given the opportunity to cure such default pursuant to Article 7 2
The CONCESSIONAIRE may terminate this Agreement at any time with prior written notice to
2
the CITY The CITY may request a review of insurance coverage required in Article 8 52
pursuant to Article 3 12 The CITY may request CONCESSIONAIRE to cure any default and
come into full compliance with the terms and conditions of this Agreement at any time pursuant
to Article 7 2 The failure of CONCESSIONAIRE to provide prior written notice not to renew
or failure of the CITY to accept the level of insurance coverage or cure any default or request full
compliance with the terms and conditions of this Agreement shall not constitute a waiver by
either party
2 3 Right of First Refusal Upon the expiration of all terms of this Agreement
CONCESSIONAIRE shall have a Right of First Refusal for a new Concession but this right shall
only extend to the right to operate a recreation facility similar in scope to the uses identified and
authorized in Article 4 1 1 of this Agreement and only if the CITY requests such use in its
solicitation for a concessionaire for the Premises If the City desires a different use for the
Premises then CONCESSIONAIRE shall not have a Right of First Refusal
24 Improvements Expiration or Termination of Agreement Upon the expiration of the
term s of this Agreement or upon the termination of this Agreement other than as a result of
condemnation proceedings the then existing Improvements on the Premises will become the
property of and owned by the CITY and the CITY shall have all right title and interest in the
same
ARTICLE 3 CONSIDERATION
3 1 Consideration for Concession
3 1 1 Cash and Premises Use As consideration for the ground and use concession
granted by the CITY to the CONCESSIONAIRE by Article 1 herein the CONCESSIONAIRE
shall provide fair and equitable compensation to the CITY in the form of cash payments and
hours of use of the Premises subject to Article 3 14 of this Agreement Premises use by the
CITY shall be governed by Article 3 3 herein Consideration shall be established pursuant to a
formula including the square footage value of the Concession Area parking use outdoor lighting
costs and hours of use of the Premises by the City as set forth in Exhibit C Based upon Exhibit
C the CONCESSIONAIRE shall provide the CITY with an annual total of 150 hours of
Premises use and further shall pay the CITY One Thousand Dollars and No Cents 1000 00 per
month beginning on the first full month following the month a certificate of occupancy is issued
to CONCESSIONAIRE for the Second Field The Premises use shall be per hour per field said
kinds of use to be determined at the sole discretion of the CITY The monthly cash payment shall
be adjusted every year during the term s of this Agreement based upon the prior years
Consumer Price Index CPI for all urban consumers as published by the United States
Department of Labor for Seattle Tacoma Bremerton all items 1982 84 100 For purposes of
the CPI adjustment the base shall be the June 2006 CPI index June to June every year i e June
2006 June 2007 The CPI adjustment shall occur on the following January 1 st of each year
during the term of this Agreement No adjustment whether an increase or a decrease shall
exceed two percent 2 annually CONCESSIONAIRE shall make this payment to the City by
3
the fifteenth day of the month following the end of each month CONCESSIONAIRE may
prepay these monthly payments on a quarterly semi annual or annual basis or as otherwise
approved by the CITY
3 1 2 Re Opener of Compensation and Insurance Coverage At any time within
180 days prior to the beginning of each ten 10 year term or any time after the beginning of any
ten 10 year term either party may request are opener of the consideration and leasehold tax set
forth in Article 3 and the insurance coverage required in Article 8 5 2 The parties acknowledge
that it is the intent to provide no more than one re opener for each ten 10 year term or
remaining portion thereof if notice to re open is given after the beginning of the new term unless
the parties mutually agree to additional re openers Upon such request the parties will in good
faith review the consideration leasehold tax andor insurance coverage and further negotiate
and make appropriate adjustments to reflect changes in market values and use of the Premises
using as the basis the date and the consideration leasehold taxes insurance coverage use of
Premises and other relevant factors which established the figures requested to be reviewed In
the event the PARTIES cannot reach an agreement following review and negotiation the
PARTIES agree to mediate the issues in dispute
3 1 3 Leasehold Excise Tax Pursuant to RCW 82 29A 020 1 concessions fall within
the definition of leasehold interest therefore even though this Agreement is not for a lease it is
still subject to the leasehold tax set forth in Chapter 82 29A RCW Accordingly
CONCESSIONAIRE agrees to pay in addition to other taxes and fees pursuant to Article 84 2
the leasehold excise tax pursuant to Chapter 8229A RCW The tax will be based on the current
value of use of the property through this Agreement concession rate value as set forth in
Exhibit C in the amount of 21 000 00 per year Since partial consideration to the City for this
property use consists of hours offield use at the Premises established through a formula based
upon the current hourly value of field use no adjustments will be made for the property use or
value of field use during the term s of this Agreement Therefore for purposes of assessment
and payment of the leasehold tax only the value of the use of the property 21 000 00 will be
adjusted every five years during the term s ofthis Agreement based upon the prior five years
Consumer Price Index CPI for all urban consumers as published by the United States
Department of Labor for Seattle Tacoma Bremerton all items 1982 84 100 For purposes of
the CPI adjustment the base shall be the June 2002 CPI index June to June every five years ie
June 2002 June 2007 The CPI adjustment shall occur on the following January 1 st of each year
during the term of this Agreement No adjustment whether an increase or a decrease shall
exceed two percent 2 annually In addition CONCESSIONAIRE agrees to pay when due the
leasehold excise tax or any additional assessments thereto with respect to any payment or
obligation hereunder which is deemed by the State of Washington to be taxable rent under said
chapter and to indemnify and hold the City harmless from the same
CONCESSIONAIRE shall pay quarterly to the City by the fifteenth day of the month
following the end of each quarter or as otherwise required by the State of Washington the
amount of the leasehold tax owing CONCESSIONAIRE may prepay these quarterly payments
on a semi annual or annual basis or as otherwise approved by the CITY
4
3 1 4 Reversion of Second Field Concession Area and Compensation Unless
otherwise agreed to in writing in the event the CONCESSIONAIRE is not issued a Certificate
of Occupancy for the Second Field by December 31 2007 the Concession Area as defined in
Article 1 1 1 shall automatically revert to the original 30 000 square foot Concession Area
defined in the Concession Agreement entered into between the parties on June 20 2001 plus a 15
foot Right of Entry buffer adjacent to and abutting said 30 000 square feet Concession Area for
maintenance and repair of the Improvements as identified in Article 1 1 2 of this Agreement In
addition the consideration set forth in Article 3 1 1 of this Agreement shall revert to the original
annual compensation of 182 hours of PREMISES use as identified in Article 3 3 of the June 20
2001 Concession Agreement and no cash payments
3 2 Athletic Equipment Personal Property Use Premises use by the CITY received as
consideration for this Agreement does not include the use by the CITY of any of the
CONCESSIONAIRE s athletic equipment or other personal property Use by the CITY of any of
the CONCESSIONAIRE s athletic equipment or other personal property will be negotiated
separately between the CITY and the CONCESSIONAIRE and is outside the scope of this
Agreement
3 3 Timing of Premises Use by CITY The consideration paid by the CONCESSIONAIRE in
the form of Premises use by the CITY shall commence accruing from the EFFECTIVE DATE of
this Agreement It is mutually understood and agreed that the CITY can receive its full annual
compensation of 150 hours of Premises use at any time during the 12 month period beginning
with the EFFECTIVE DATE of this Agreement and every 12 month period thereafter
34 Premises Use by CITY
3 4 1 Types of Use The hours of Premises use provided by the CONCESSIONAIRE to
the CITY in consideration for this Agreement are intended to provide recreational opportunities
of a suitable and compatible nature for the residents of the CITY as part of the Parks and
Recreation programs Such Premises use by the CITY shall be without cost to the CITY to the
extent of the 150 hours annually pursuant to Article 32 herein
34 2 Maintenance Utility Costs Clean Up After Use The CONCESSIONAIRE
shall be responsible for all overhead costs including the utilities and general maintenance of the
Premises during the use of the Premises by the CITY The CITY agrees to clean up the Premises
after each CITY use
34 3 Damage Claims Liability The CITY shall be responsible for all damage or
claims that may arise out of the Premises use by any of the CITY s employees agents guests or
invitees The CITY during such periods of use shall supervise or cause the CITY s employees
agents guests or invitees to be supervised The provisions for mutual indemnity hold harmless
and liability insurance pursuant to Articles 8 5 8 6 herein apply during Premises use by the
CITY
5
3 5 Scheduling Premises Use by CITY The CITY and the CONCESSIONAIRE shall meet at
times as necessary to determine how such Premises use hours shall be allocated to the CITY in
the upcoming quarter in accordance with the following provisions
35 1 Spring and Summer Quarters The CITY shall have the full discretion to
determine which hours of Premises use the CITY intends to use during the Spring quarter April
May June and Summer quarter July August September of each year At the CITY s
discretion the CITY has the right to schedule its full annual compensation of 150 hours of
Premises USE during the Spring and Summer quarters
35 2 Fall and Winter Quarters The CONCESSIONAIRE shall have the full discretion
to determine which hours of Premises use the CONCESSIONAIRE intends to use during the Fall
quarter October November December and Winter quarter January February March of
each year The CONCESSIONAIRE has the right to schedule the CITY s remaining
compensation if any of Premises USE not previously scheduled by the CITY during the Spring
and Summer quarters
3 6 CITY s Increased Premises Use The CITY shall have the full discretion to determine
which hours ofthe CITY s Premises use will be accounted against the CITY s annual
compensation of 150 hours The CITY may increase its hours of Premises use beyond its annual
compensation by paying to the CONCESSIONAIRE an hourly rate then in effect by the
CONCESSIONAIRE and with scheduling at the discretion of the CONCESSIONAIRE
ARTICLE 4 USE OPERATION OF PREMISES
4 1 Use of Premises
4 1 1 Indoor Athletic and Recreational Uses The CONCESSIONAIRE will use and
occupy the Premises throughout the full term of this Agreement for the purpose of providing
indoor athletic educational entertainment community activities and recreational opportunities
all related to the operation of an indoor recreation facility CONCESSIONAIRE shall take
reasonable precautions in securing the Premises during the full term of this Agreement
4 1 2 Incidental Uses The CONCESSIONAIRE may provide concessions in the form
of food and beverage and the sale of incidental items directly related to the use of the recreation
facility including but not limited to gym equipment soap shampoo and similar shower
supplies and clothing related to athletic pursuits
4 1 3 Security and Nuisance During Use The CONCESSIONAIRE shall take
reasonable precautions in securing the Premises during the full term of this Agreement The
CONCESSIONAIRE shall use the Premises for no unlawful purposes and shall not use or
occupy the Premises in any manner which would constitute a public nuisance or violate State or
CITY laws
6
4 2 Operating Hours The availability of recreational opportunities for CITY residents is a
material consideration for this Agreement Accordingly and during the full term of this
Agreement the CONCESSIONAIRE shall continuously conduct and carryon the
CONCESSIONAIRE S permitted uses and shall keep the Premises open for business and cause
the CONCESSIONAIRE S business to be conducted therein during the usual business hours of
each and every business day as mutually agreed upon This provision shall not apply if the
Premises should be closed and the business of CONCESSIONAIRE is temporarily suspended on
account of labor strikes lockouts or similar causes beyond the reasonable control of
CONCESSIONAIRE or for maintenance remodeling repair or renovation as approved by the
CITY in writing including approvals of any construction schedules The CONCESSIONAIRE
covenants and agrees to provide sufficient personnel and to keep the Premises adequately
stocked with merchandise recreational equipment fixtures and facilities so as to conduct its
business in accordance with sound business practice The CONCESSIONAIRE in order to keep
its business commitments shall be in operation in accordance with sound business practice
4 3 Entry by CITY CITY may enter the Premises at all times to inspect provide services
required hereunder post notices of CONCESSIONAIRE s noncompliance with the provisions of
this concession all without being deemed a constructive eviction Any person or persons who
may have an interest in the purpose of CITY s visit may accompany CITY CITY has the right to
use any and all means that CITY deems proper to open doors and gates in an emergency in order
to obtain entry to the Premises
44 Health Inspections CONCESSIONAIRE shall not knowingly commit or willfully permit to
be committed any act or thing contrary to the rules and regulations prescribed by the local board
of health or which shall be contrary to the laws rules or regulations of any federal state or
municipal authority CONCESSIONAIRE shall allow the Bremerton Kitsap County Health
Department to make regular and ordinary inspections of the Premises as said health department
may deem proper
4 5 Maintenance Repair Improvements
4 5 1 Maintenance CONCESSIONAIRE shall at its sole cost and expense clean and
maintain the Premises and make repairs restorations and replacements to the Premises
including without limitation the heating ventilating air conditioning mechanical electrical and
plumbing systems structural roof walls and foundations roof coverings sprinkling and
irrigation systems playing surfaces and the fixtures and appurtenances to the Premises as and
when needed to preserve them in first class condition and repair less normal wear from use
throughout the full term CONCESSIONAIRE shall further keep in repair and maintain as
necessary all machinery equipment and facilities necessary for the playing of sports and the
comfort of players CONCESSIONAIRE shall paint the exterior of the buildings except the
metal with such frequency as may be required to maintain their good clean appearance All
such repairs restorations and replacements will be in quality and workmanship at least equal to
the original work or installations If CONCESSIONAIRE fails to make such repairs restorations
or replacements CITY may make them at the expense of CONCESSIONAIRE and such expense
7
willbepaidbyCONCESSIONAIREwithinfifteen15daysafterdeliveryofastatementforsuchexpense452SidewalksMaintenanceAtitssolecostandexpenseCONCESSIONAIREshallmaintainanysidewalksonthePremisesingoodandpresentableconditionduringthefulltermofthisAgreementshallberesponsibleforcorrectinganyunsafeconditionsandshallberesponsiblefortheremovaloficeandsnowfromthesidewalks453JanitorialServicesAtitssolecostandexpenseCONCESSIONAIREshallkeepthePremisescleanandshallprovidesufficientjanitorialserVicestomaintainatidyappearanceonandaboutthePremisesCONCESSIONAIREshallprovidelandscapingmaintenanceservicesasapplicablesuchthatlandscapingonthePremisesremainshealthyattractiveandwellmaintained454RepairofDamageIntheeventanydamageorinjuryshalloccurtothePremisesofanykindornaturewhatsoeverCONCESSIONAIREshallpromptlycausesaiddamageorinjurytobefullyrepairedatCONCESSIONAIRESowncostandexpenseIntheeventCONCESSIONAIREfailstoaccomplishsuchrepairswithinfifteen15daysofreceiptofwrittennoticebytheCITYtheninthateventCITYmaybutisnotrequiredtoenterthePremisesandaccomplishsuchrepairsandbillCONCESSIONAIREwhowillpaythebillwithinfifteen15daysafterdeliveryofastatementforsuchexpense456ImprovementsTheCONCESSIONAIREshallbesolelyresponsibleforprovidingadequatefundingforanyalterationsorimprovementsasprovidedinthisAgreementandsuchalterationsorimprovementsshallbemadewithoutcosttotheCITY457AlterationsofPremisesafterConstructionAftersuchtimeasthePremiseshavebeencompletedandacceptedasdefinedabovetheCONCESSIONAIREshallnotmakeanymaterialalterationtothePremisesincludinganychangestothelandscapingwithouttheCITYSpriorwrittenconsent46SignsCONCESSIONAIREmayplaceandmaintainsignsuponthePremisesinaccordancewithapplicablesignandzoningcodesoftheCITY47Utilities471UtilityServicesandExpenseTheCONCESSIONAIREwillpayforallwatergasgarbagesewageelectricitytelephoneandotherutilitiesandcommunicationsservicesusedbyCONCESSIONAIREonthePremiseswhetherornotsuchservicesarebilleddirectlytoCONCESSIONAIRECONCESSIONAIREwillalsoprocureorcausetobeprocuredwithoutcosttotheCITYanyandallnecessarypermitslicensesorotherauthorizationsrequiredforthelawfulandproperinstallationandmaintenanceuponthePremisesofutilityappurtenancesandappliancesforuseinsupplyingsuchutilitiesandservicestoanduponthePremisesTheCITYuponrequestofCONCESSIONAIREandatthesoleexpenseandliabilityofthe8
CONCESSIONAIREwilljoinwithCONCESSIONAIREinanyapplicationrequiredforobtainingorcontinuinganysuchservicesprovidedthatsuchservicesdonotviolateanyotherapplicableprovisionofthisAgreementTheCITYshallnotbeheldliableforanyinjurylossordamagecausedbyorresultingfromanyinterruptionorfailureofutilityservicesduetoanycausewhatsoeverexcepttheCITYssolenegligenceCONCESSIONAIREshallnotbeentitledtoanyoffsetreductionorreturnofconsiderationasaresultofanyinterruptionorfailureofservIces472TrashGarbageTheCONCESSIONAIREshallplacealltrashandgarbageintosuchareasandcontainersasaredesignedandintendedtoaccommodatethetrashandgarbagegeneratedwithinoronthePremisesTheCONCESSIONAIREshallnotallowtrashandorgarbagetoaccumulatesuchthatanuisanceorhealthhazardresults48ParkingTheCITYwillberesponsibletoprovideadequateparkingtosupportthePremisesanditsoperations49HazardousSubstances491DefinitionAsusedhereinthetermHazardousSubstancemeansanyhazardoustoxicordangeroussubstancewasteormaterialwhichisorbecomesregulatedunderanyfederalstateorlocalstatuteordinanceruleregulationorotherlawnoworhereafterinaffectpertainingtoenvironmentalprotectioncontaminationorcleanup492InformationCONCESSIONAIREshallkeepuponthePremisesinalocationaccessibletoCITYonrequestduringnormalbusinesshourscopiesofallreportsregardinghazardousortoxicmaterialsinthePremisesthatCONCESSIONAIREhasprovidedtoanygovernmentalagencyinthepreviousquarterCONCESSIONAIREshalluponrequestandatCONCESSIONAIRESexpenseprovideCITYwithacopyofanysuchreportastowhichCITYrequestacopyIntheeventofanyaccidentspillorotherincidentinvolvinghazardousortoxicmatterthatCONCESSIONAIREisrequiredtoreporttoanygovernmentalagencyCONCESSIONAIREshallimmediatelyreportthesametotheCITYandsupplyCITYwithallinformationandreportswithrespecttothesametogetherwithCONCESSIONAIREScleanuporremediationplanandscheduleIfsuchcleanuporremediationplanisnotacceptabletoCITYinCITYSsolediscretionCITYmaysonotifyCONCESSIONAIREandupon48hourspriorwrittennoticeorwithoutnoticeifsorequiredbyanemergencymayenteronthePremisestoconductthecleanuporremediationandchargeCONCESSIONAIREthecoststhereofAllinformationdescribedhereinshallbeprovidedtoCITYregardlessofanyclaimbyCONCESSIONAIREthatitisconfidentialorprivilegedprovidedthattheCITYshallnotpublishordisclosetheinformationtoanythirdpartyexceptaspursuanttoChapter4256RCW493IndemnificationCONCESSIONAIREagreestoholdharmlessprotectindemnifyanddefendCITYfromandagainstanydamagelossclaimorliabilityINCLUDINGAttorneysfeesandcostsresultingfromCONCESSIONAIRESusedisposaltransportationgenerationandorsaleofanyHazardousSubstancesTheCITYagreestohold9
harmless protect indemnify and defend CONCESSIONAIRE from and against any damage
loss claim or liability including attorney s fees and costs resulting from a Hazardous
Substances existing on the Premises as of the EFFECTIVE DATE ofthis Agreement or b
Hazardous Substances thereafter used disposed of or generated on the Premises by the CITY
These indemnities will survive the termination of this Agreement whether by expiration of the
Term or otherwise
4 10 Risk of Loss All personal property of any kind or description whatsoever in the Premises
shall be at the CONCESSIONAIRE s sole risk and CITY shall not be liable for any damage
done to or loss of such personal property However CONCESSIONAIRE is not responsible for
losses or claims of stolen property under the care and contol of the CITY during the CITY S use
periods
ARTICLE 5 DESIGN CONSTRUCTION OF PREMISES
5 1 Design The CONCESSIONAIRE shall retain a licensed architect or licensed professional
engineer registered in the State of Washington hereinafter referred to as the DESIGN
ENGINEER who shall design the indoor athletic facility the Second Field and other related
Improvements The CITY shall have the right to approve the final design of the Improvements
and shall have a continuing right to approve the exterior color of any structure on the Premises
CONCESSIONAIRE shall comply with the Americans with Disabilities Act of 1990 ADA in
the design construction and operation of the Premises
5 2 Building Site Plans The CONCESSIONAIRE shall retain a licensed architect or licensed
professional engineer registered in the State of Washington to prepare building and site plans for
the Premises which shall reference the structure the Second Field and other related
Improvements utilities generally and landscape plan as applicable The CITY shall have the
right to approve the final building and site plans
5 3 Construction Site Work Fencing The CONCESSIONAIRE shall be solely responsible for
all development and construction of the Premises and hold the CITY harmless from any and all
claims arising out of the development and construction ofthe Premises pursuant to Article 8 6
herein CONCESSIONAIRE shall be responsible for the site work all required permits and
grading CONCESSIONAIRE shall properly barricade the work area and install signage
directing unauthorized person from entering onto the building site during any phase of
development or construction Unless otherwise agreed fencing shall be placed around the work
area In addition the building site shall be kept in a clean and organized condition during
development periods CONCESSIONAIRE shall be responsible for site security traffic and
pedestrian warnings at the site during the development and construction phases
54 Construction Deadlines CONCESSIONAIRE shall be required to commence development
and construction of the Second Field within six months of the EFFECTIVE DATE of this
Agreement Commencement of development and construction of the Second Field is defined as
that date upon which physical movement or grading of the soil in preparation for construction of
10
any structure on the Premises CONCESSIONAIRE shall be required to complete the
development and construction of the Premises within one year of the EFFECTIVE DATE of this
Agreement Completion of the development and construction of the Second Field is defined as
that date upon which all final occupancy permits are obtained by the CONCESSIONAIRE
5 5 Failure to Meet Construction Deadlines Time of Essence Except as provided in Article
8 15 herein it is mutually understood and agreed that failure by the CONCESSIONAIRE to meet
the development and construction deadlines shall constitute a material breach of this Agreement
by the CONCESSIONAIRE and the CITY at its option can terminate this Agreement for cause
pursuant to Article 7 Time is of the essence with this Agreement
5 6 Stormwater Drainage Sewer Water Lines The CONCESSIONAIRE will be
responsible for relocating storm drains sewers and water lines to the Premises as required to
complete any development and construction of the Premises
5 7 Development and Construction Fees Expenses The CONCESSIONAIRE shall be
responsible for obtaining and paying for necessary permits fees and expenses associated with
the development and construction of the Premises In addition CONCESSIONAIRE shall be
responsible for any additional costs for inspections billed to the CITY by any government
agency including but not limited to the City of Bremerton Kitsap County or the State of
Washington
5 8 Escrow Requirements To Ensure Performance of Contractors It is mutually understood
and agreed that the CONCESSIONAIRE will prior to the commencement of development and
construction of the Premises pursuant to Article 54 herein place into escrow funds sufficient to
ensure contractor performance through completion of construction and development of the
Premises
5 9 Not a Public Works Project The development and construction of the Premises is not a
public works project requiring the payment of prevailing wages CONCESSIONAIRE is the
developer and the CITY is not an owner partner joint venturer nor maintains any other business
relationship with the CONCESSIONAIRE regarding the Premises other than as grantor of a
concession and user of the Premises The CITY is not involved with nor has any responsibilities
for the biding contracting or operations ofthe Premises and will occupy no space in the
Premises The CONCESSIONAIRE does not deem itself required to pay prevailing wages nor
will the CONCESSIONAIRE be obligated to payor to contract for prevailing wages or any other
standard of payment controls associated with this project This provision is a material part of the
consideration for this Agreement The project signage and all literature advertising by either the
CITY or CONCESSIONAIRE shall not indicate in any manner that this is a CITY project
contract or other misleading statement indicating that this project is a public work project
directly or indirectly
5 10 No Liens Except liens and encumbrances of any lender pursuant to Article 6 herein it is
mutually understood and agreed that the CONCESSIONAIRE shall have no authority express or
11
111impliedtocreateorplaceortoallowtobecreatedorplacedanylienorencumbranceofanykindornaturewhatsoeveruponorinanymannertobindtheinterestoftheCITYinthePremisesortochargetherentalspayablehereunderforanyclaiminfavorofanypersondealingwithCONCESSIONAIREincludingthosewhomayfurnishmaterialsorperformlaborforanyconstructionorrepairsandeachsuchclaimshallaffectandeachsuchlienshallattachtoifatallonlytherightandinterestgrantedtoCONCESSIONAIREbythisAgreementIfanysuchliensarefiledCITYmaywithoutwaivingitsrightsandremediesforbreachandwithoutreleasingCONCESSIONAIREfromitsobligationshereunderrequireCONCESSIONAIREtopostsecurityinformandamountreasonablysatisfactorytoCITYorcausesuchlienstobereleasedbyanymeansCITYdeemsproperincludingpaymentinsatisfactionoftheclaimgivingrisetothelienCONCESSIONAIREshallpaytoCITYupondemandanysumpaidbyCITYtoremovetheliensFurtherCONCESSIONAIREagreesthatitwillsaveandholdtheCITYharmlessfromanyandalllosscostorexpensesbasedonorarisingoutoftheassertedclaimsorliensexceptthoseofthelenderagainstthisAgreementoragainsttherighttitleandinterestoftheCITYinthePremisesorunderthetermsofthisAgreementincludingreasonableattorneysfeesandcostsincurredbyCITYinremovingsuchliensandinenforcingthisparagraphAdditionallyitismutuallyunderstoodandagreedthatthisparagraphisintendedtobeacontinuingprovisionapplicabletofuturerepairsandimprovementsaftertheinitialconstructionphaseARTICLE6FINANCINGSECURITYINTERESTS61FinancingNoCITYObligationCONCESSIONAIREshallbesolelyresponsibleforallfinancingrequirementsforallconstructionmaintenancerepairsorsubsequentimprovementstothePremisesTheCITYshallbeundernoobligationdirectlyorindirectlytopayforanylabormaterialorimprovementassociatedwiththefacilityexceptasprovidedhereinormutuallyagreeduponTheCONCESSIONAIREshallinapplyingandobtainingfinancinginformanylenderthattheCITYhasnofinancialobligationsassociatedwiththeconstructionmaintenancerepairsorsubsequentimprovementstothePremises62SecurityInterestinPremisesAgreementConsentTheCITYconsentstothegranttransferpledgeandassignmentofanyandallrighttitleclaiminterestofCONCESSIONAIREinandtothisAgreementandinthePremisesandinanybuildingfacilitypersonalpropertyandfixturesinthePremisesCollateraltolenderforfinancingpurposesTheCITYshallrecognizelendersfirstprioritysecurityinterestintheCollateralandtheCITYherebysubordinatesanyandallinterestoftheCITYinsaidCollateraltolenderCONCESSIONAIREacknowledgesthattheCITYwillnotgrantanysecurityinteresttoanylenderinCITYrealpropertynorwilltheCITYallowanyencumbranceofanykindornaturewhatsoeveruponorinanymanneronitstitletoCITYrealpropertyIntheeventofdefaultbyCONCESSIONAIREtolenderinadditiontoallitsrightsandremediesavailableatlawandequitylendermayenforceandorforecloseitssecurityinterestinterestsintheCollateralCITYagreesthatinconnectionwithanysuchdefaultandallwithoutfurtherconsentofCITYlendermayaAcquireCONCESSIONAIRESinterestintheCollateraleitherbyadeedinlieuofforeclosureoractualforeclosure12
b Rent and or grant a ground and use concession of the Premises subject to this Agreement
pending foreclosure of the Collateral by lender
c Assign sell andor transfer the Collateral in whole or in part to any person or entity
d Take possession of any or all of the Collateral obtain right of substitution for
CONCESSIONAIRE and operate said Collateral andor
e Appoint a receiver
Any assignment or transfer under Article 62 is subject to Article 8 7 Lender shall have
no interest in improvements located on the Premises at the time of expiration of the term or terms
of this Agreement pursuant to Article 2 at which time all improvements shall become the
property ofthe CITY
6 3 LENDER s Reliance on Term and Renewal Options The City acknowledges that the
CONCESSIONAIRE in making application for financing may be required to have an assurance
that the terms of this Agreement will extend beyond the term of the financing term By its
signature to this Agreement the CITY confirms its authority to provide the ten year Agreement
term with three options to extend the ten year Agreement for a total of forty years with the
renewal options conditioned solely upon the CONCESSIONAIRE maintaining current payments
and remaining in full compliance with the terms and conditions of this Agreement Lender may
but is not obligated to exercise the right to renew and extend the terms of this Agreement as set
forth herein Additionally the CITY acknowledges that after any original financing
commitments by the CONCESSIONAIRE have been satisfied these financing provisions shall
be applicable to all future advances or financing required by the CONCESSIONAIRE and used
solely for the improvements and repairs of the Premises
64 Surrender of the Collateral No surrender of Collateral or the Premises subject to this
Agreement or any other act of CONCESSIONAIRE shall be deemed to terminate this
Agreement CITY will not terminate this Agreement voluntarily by agreement with
CONCESSIONAIRE unless lender has been previously notified in writing and has consented to
the termination in writing This Agreement shall not be amended or modified unless lender has
been previously notified in writing and has consented to such amendment or modification in
writing
65 Notice of Default and Lender s Rights
6 5 1 Notice of Default If CONCESSIONAIRE defaults under this Agreement or if any
event occurs which would give CITY the right to terminate modify amend or shorten the term
of this Agreement CITY shall take no steps to exercise any right it may have under this
Agreement without first giving lender written notice of such default in accordance with Article
6 11 below A copy of each and every notice of default served or sent by CITY or its agent to or
upon CONCESSIONAIRE pursuant to this Agreement shall be sent contemporaneously to
lender in accordance with Article 6 11 below Such notice of default shall specify the event or
events of default then outstanding and the time period at the end of which the indicated action
would become effective
13
652TerminationforMonetaryDefaultIfthenoticeofdefaultgivenbyCITYtolenderrelatestoamonetarydefaultandCONCESSIONAIREhasnotcuredsuchmonetarydefaultwithin30daysafterlenderreceivesthenoticeandCONCESSIONAIRESfailuretocureresultsinCITYdesiringtoterminatethisAgreementCITYmayterminatethisAgreementpursuanttoArticle7ifsuchmonetarydefaultisnotcuredbyeitherCONCESSIONAIREorlenderwithinfortyfive45daysafterlenderreceivesthenoticeofdefault653TerminationforNonMonetaryDefaultIfthenoticeofdefaultgivenbyCITYtolenderrelatestoanonmonetarydefaultandCONCESSIONAIREhasnotcuredordiligentlypursuedcuringsuchnonmonetarydefaultwithinthirty30daysafterlenderreceivesthenoticeCITYshalltakenoactiontoterminatethisAgreementifaWithinsixty60daysafterCITYSnoticetolenderregardingCONCESSIONAIRESfailuretocureorfailuretodiligentlypursueacurelendernotifiesCITYofitsintenttorealizeuponitssecurityinterestandcommencesrealizationwithinsixty60daysthereafteranddiligentlypursuesrealizationandbLenderpaysCITYattimeofnotificationallmoniesorperformancesduethatmaybeindefaultuptothedaylendernotifiesCITYoflendersintentandfurtherpaysorperformsallconsiderationthataccruesduringtheperiodafterlendersonotifiesCITYandcompletessuchotherperformancesthatmayberequiredorcomedueunderthisAgreementCITYshallnotterminatethisAgreementbecauseofCONCESSIONAIRESbreachofanytermsofthisAgreementrelatingtothesolvencyofCONCESSIONAIREortheinstitutionofanybankruptcyinsolvencyreceivershiporrelatedactionbyoragainstCONCESSIONAIREaslongaslendercuresanydefaultunderthisAgreementbyCONCESSIONAIREasprovidedhereinexceptthatlendershallnotberequiredtocureanydefaultsrelatingtosolvencyofCONCESSIONAIRE66RighttoAssignLendershallhavetherighttoassignitsinterestintheCollateralUponthepurchasersassigneesortransfereesassumptionandagreementtoperformandbeboundbyallofthetermsofthisAgreementlendershallberelievedfromfurtherliabilityunderthisAgreementIfalenderfinancesthepurchaserassigneeortransfereesaidlendershallbesubjecttoallobligationsassetforthinthisAgreementAnysuccessorlendershallbeboundbythetermsandconditionsofthisAgreement67DispositionofInsuranceShouldtheCollateralsufferanylosswhichiscoveredbycasualtyinsuranceandtheinsuranceproceedsareusedtorestoreanyimprovementsmadebyCONCESSIONAIRECITYagreesthatCONCESSIONAIREandlendershallhavetherighttosuchproceedssolongasnoneofCITYSpropertyutilitiesorotherservicesthereinaredamagedorsuchdamagesarerepairedIntheeventtheCITYSlandissubstantiallydamagedandCONCESSIONAIRESimprovementshavebeenrepairedCITYshallonlyparticipateintheinsuranceproceedstotheextentnecessarytorepairandrestoreCITYSlandandanyofCITYSimprovementsonorinthegroundtothesameconditionthelandwasatthecommencementofthisAgreementorinthesameconditionatthetimeofthecasualtyOtherthanasdescribedhereinCITYshallhavenoclaimtoinsuranceproceedsthatareattributabletoCONCESSIONAIREsinterestintheCollateral14
6 7 Right to Participate in Litigation Lender shall have the right to participate in any
litigation arbitration or dispute directly affecting the Collateral or interest of
CONCESSIONAIRE or lender therein including without limitation any suit action arbitration
proceeding condemnation proceeding or insurance claim CITY upon instituting or receiving
notice of any such litigation arbitration or dispute will promptly notify lender of the same
6 8 Incorporation of Lender s Protection Provisions Lender shall be a beneficiary of all
rights of CONCESSIONAIRE herein including but not limited to the warranty indemnity hold
harmless choice of law and venue costs and attorney s fees as provided herein
6 9 Right to Remove Collateral In the event lender exercises its rights under its Collateral and
realizes upon the Collateral CITY agrees that lender is entitled to remove the Collateral
including but not limited to building facility furniture movable trade fixtures and equipment
from the Premises at any reasonable time and that the Collateral shall remain personal property
even though the trade fixtures may be affixed to or placed upon the Premises In the event lender
so realizes on its Collateral CITY waives any right title claim lien or interest in the Collateral
6 10 Notices All notices copies of notices consents or other communications to lender given
under this Agreement to lender must be in writing and shall be effective when received Such
communications shall be given in person to an officer of lender addressed to lender at an address
as provided by lender
ARTICLE 7 TERMINATION
7 1 Failure to Perform
7 1 1 Obligation to Perform Nothing herein shall imply any duty upon CITY to do any
work which under any provision of this concession CONCESSIONAIRE may be required to
perform and the performance thereof by CITY shall not constitute a waiver of
CONCESSIONAIRE s default CITY shall not in any event be liable for inconvenience
annoyance and disturbance in its activities in the PARK however shall not permit a loss of
business or other damage to CONCESSIONAIRE by reason of its actions pertaining to the
PARK
7 1 2 Payments to Other Parties Except as otherwise expressly provided hereunder all
obligations of the CONCESSIONAIRE under this Agreement will be performed by
CONCESSIONAIRE at CONCESSIONAIRE s sole cost and expense If CONCESSIONAIRE
fails to pay any sum of money owed to any party other than CITY for which
CONCESSIONAIRE is liable hereunder or if CONCESSIONAIRE fails to perform any other
act on its part to be performed hereunder and such failure continues for ten days after notice
thereofby CITY CITY may without waiving or releasing CONCESSIONAIRE from its
obligations make any such payment or perform any such other act to be made or performed by
CONCESSIONAIRE CONCESSIONAIRE shall pay CITY on demand all sums so paid by
15
CITY and all necessary incidental costs together with interest thereon at the lesser of 112 percent
per month or the maximum rate permissible by law from the date of such payment by CITY
7 2 Default This Agreement and the concession granted herein may be terminated for default
as follows
7 2 1 CITY s Default CITY will not be in default unless CITY fails to perform an
obligation within thirty 30 days after notice by CONCESSIONAIRE which notice must
specify the alleged breach provided that if the nature of CITY s obligation is such that more
than thirty 30 days are reasonably required for cure then CITY will not be in default if CITY
commences to cure within thirty 30 days of CONCESSIONAIRE s notice and thereafter
diligently pursues completion and completes performance within a reasonable time
7 2 2 CONCESSIONAIRE s Default The occurrence of anyone or more of the
following events constitutes a default under this Agreement by CONCESSIONAIRE 1
CONCESSIONAIRE shall be in default of the performance of any covenants conditions or
provisions of this Agreement other than the covenants for the payment of consideration required
by this Agreement where such failure continues for a period of thirty 30 days after written
notice is given by CITY provided that if the nature of CONCESSIONAIRE s obligations is such
that more than thirty 30 days are reasonably required for cure CONCESSIONAIRE will not be
in default if CONCESSIONAIRE commences to cure within thirty 30 days of CITY s notice
and thereafter diligently pursues completion and completes performance within a reasonable
time or 2 CONCESSIONAIRE shall be adjudged bankrupt make a general assignment for the
benefit of creditors or take the benefit of any insolvency act or if a permanent receiver and
trustee in bankruptcy shall be appointed for CONCESSIONAIRE s estate and such appointment
is not vacated within thirty 30 days or 3 Premises become vacant or deserted for a period of
thirty 30 days or 4 if this Agreement shall be assigned or the Premises concessioned by
CONCESSIONAIRE other than in accordance with the terms of this AGREEMENT and such
default is not cured within twenty 20 days after written notice to CONCESSIONAIRE or 5
CONCESSIONAIRE shall fail to make any payment when due or fail to make any other
payment required hereunder when due when that failure is not cured within thirty 30 days after
mailing of written notice thereof by CITY or 6 CONCESSIONAIRE shall fail to comply with
the same concession term or covenant on three occasions during any 10 year term even if such
breach is cured within the applicable cure period The CITY s right to terminate pursuant to this
Article for failure of CONSCESSIONAIRE to cure a default is subject to the lender s right to
cure pursuant to Articles 6 52 and 6 5 3
7 2 3 Default for Other Cause This Agreement may be immediately terminated for
other cause by a party if the other party substantially fails to perform its obligations under this
Agreement through no fault of the terminating party and the non performing party does not
commence correction of the failure of performance within thirty 30 days of the terminating
party s sending notice to the non performing party
16
7 3 Remedies Are Cumulative Remedies under this Agreement are cumulative the failure to
exercise on any occasion any right shall not operate to forfeit such remedy
74 Destruction of Premises Use of Insurance Proceeds Unless otherwise mutually agreed
by the PARTIES in the event the Premises are destroyed or injured by fire earthquake or other
casualty then CONCESSIONAIRE shall proceed to rebuild and restore the Premises or such
part thereof as may be injured as aforesaid In the event of any loss covered by the insurance
policies described and required pursuant to Article 8 5 1 herein unless this Agreement shall be
terminated as provided herein the proceeds of such insurance policies shall be used by
CONCESSIONAIRE first to rebuild and restore the Premises and replace the improvements
fixtures and equipment which may be damaged or destroyed by such casualty
7 5 Duties upon Termination Upon termination of this Agreement and unless otherwise
arranged CONCESSIONAIRE shall remove from the PARK all its personal property goods
and effects In the event that the CONCESSIONAIRE fails to perform this duty at termination
the CITY may cause such removal to be made and said personal property goods and effects to
be stored the cost and expense to be paid by the CONCESSIONAIRE It is mutually understood
and agreed that the real property constituting the Premises of this Agreement is the real property
of the CITY and that all improvements to said real property shall revert to the CITY at the
termination of this Agreement
7 6 Eminent Domain The following rules shall govern the rights and duties of the PARTIES in
the event of interference with the possession of the Premises by CONCESSIONAIRE by right of
eminent domain or private purchase in lieu thereof
7 6 1 Rights of Termination If the whole of the Premises shall be taken for any public
or quasi public use under any statute or by right of eminent domain or by private purchase in
lieu thereof then this Agreement shall automatically terminate as of the date that title shall be
taken Ifmore than twenty five percent 25 of the Premises shall be so taken and if the taking
renders the remainder thereof unusable for the purposes for which the Premises were
concessioned then CITY and CONCESSIONAIRE shall each have the right to terminate this
Agreement on thirty 30 days notice to the other given within ninety 90 days after the date of
such taking Provided however that if the CITY is exercising its rights of eminent domain a fair
value shall be placed on this Agreement and the Premises with the compensation thereof
awarded solely to CONCESSIONAIRE or lender pursuant to its security interest if any
7 6 2 Non Termination If any part of the Premises shall be so taken and this
Agreement is not terminated then the CITY shall at its own cost and expense restore the
remaining portion of the Premises to the extent necessary to render it reasonably suitable for the
purposes for which it was concessioned
7 6 3 Compensation The compensation awarded or paid upon such a total or partial
taking of the Premises and or this Agreement shall belong to and be apportioned between the
CITY and CONCESSIONAIRE in accordance with their respective interests as determined by a
17
court of competent jurisdiction Additionally CONCESSIONAIRE may prosecute any claim
directly against the condemning authority for the costs of removal of the goodwill stock trade
fixtures furniture and other personal property belonging to CONCESSIONAIRE CITY shall
have no claim to condemnation proceeds that are attributable to CONCESSIONAIRE s interest
in the Collateral nor shall lender gave any interest in CITY s condemnation proceeds if any
ARTICLE 8 GENERAL CONDITIONS
8 1 Relationship of PARTIES
8 1 1 CONCESSIONAIRE Independent Contractor Status The PARTIES intend
that an independent relationship shall be created by this Agreement Nothing contained herein
shall create the relationship of principal and agent or of partnership or of joint venture between
the parties hereto and neither the method of computation of consideration nor any other
provision contained herein shall be deemed to create any relationship between the parties hereto
other than the relationship of CITY as granting a ground and use concession to the
CONCESSIONAIRE CONCESSIONAIRE has the experience ability and resources to develop
and operate an indoor athletic facility and is performing independent functions and
responsibilities within its field of expertise CONCESSIONAIRE and its personnel are
independent contractors and not employees of the CITY No agent employee servant or
representative of the CONCESSIONAIRE shall be deemed to be an employee agent servant or
representative of the CITY CONCESSIONAIRE and its personnel have no authority to bind the
CITY or to control the CITY s employees As an independent contractor CONCESSIONAIRE
is responsible for its own management The CITY s administration and enforcement of this
Agreement shall not be deemed an exercise of managerial control over CONCESSIONAIRE or
its personnel
8 1 2 No Third Party Rights Created It is mutually understood and agreed that this
Agreement is solely for the benefit of the PARTIES hereto and gives no right to any other party
except as provided by Article 6 herein
8 1 3 No Joint Venture Partnership It is mutually understood and agreed that no joint
venture or partnership formed as a result of this Agreement
8 2 Notices Except as provided in Article 6 herein any notice required or permitted hereunder
must be in writing and will be effective upon the earlier of personal delivery or three days after
being mailed by certified mail return receipt requested addressed to CONCESSIONAIRE or to
CITY at the address for that party designated herein Either party may specify a different address
for notice purposes by written notice to the other except that CITY may in any event use the
Premises as CONCESSIONAIRE s address for notice purposes All notices shall be delivered to
the following addresses
18
CITY Address
City of Bremerton
Attn Director of Parks and Recreation
680 Lebo Boulevard
Bremerton WA 98310
CONCESSIONAIRE Address
Olympic Soccer Sports Center LLC
Attn Mr Dennis Michael Manager
P O Box 5047
Bremerton WA 98312 0466
8 3 Reports Information When requested by the CITY CONCESSIONAIRE shall furnish
periodic reports and documents on matters covered by this Agreement The reports and
documents shall be furnished in the time and form requested CONCESSIONAIRE shall
maintain accounting records in accordance with Generally Accepted Accounting Principles
GAAP
84 Permits Licenses Taxes Fees
84 1 Permits Licenses Other Documents The CONCESSIONAIRE shall possess
a current Bremerton Business License and shall obtain all regulatory licenses and permits
including all construction and building permits necessary to fulfill CONCESSIONAIRE s
obligations under this Agreement at CONCESSIONAIRE s sole expense Each party agrees to
execute such additional or other documents as may be required to fully implement the intent of
this Agreement
84 2 Taxes Fees As an independent contractor the CONCESSIONAIRE shall be
solely responsible for all taxes fees and charges incurred including but not limited to license
fees business and occupation taxes workers compensation and unemployment benefits all
federal state regional county and local taxes and fees including leasehold excise tax pursuant
Chapter 8229A RCW ad valorem taxes taxes imposed on personal property all other
assessments for improvements or benefits which are assessed on the Premises income taxes
property taxes permit fees operating fees surcharges of any kind that apply to any and all
persons facilities property income equipment materials supplies or activities related to the
CONCESSIONAIRE s obligations under this Agreement The parties acknowledge that for the
purpose of real estate taxes the use of the Premises is limited to those uses identified in Article
4 1 1
8 5 Insurance
8 5 1 Fire Earthquake Casualty Insurance The CONCESSIONAIRE agrees that
at all times during the full term of this Agreement and at its own expense CONCESSIONAIRE
shall at its sole cost and expense maintain in full force and effect adequate fire earthquake and
other casualty coverage covering the Premises and its contents including all personal property
fixtures improvements Such policy shall include a replacement cost endorsement
CONCESSIONAIRE will shall obtain and file with the CITY s Risk Manager a Certificate of
Insurance evidencing such coverage All such insurance coverage shall include a ten day
cancellation notice to CONCESSIONAIRE and the CITY Adequacy of coverage is defined as
insurance sufficient to restore the Premises to its pre casualty condition
19
8 5 2 Liability Insurance Prior to the commencement date of this Agreement
CONCESSIONAIRE at its own expense shall obtain and file with the CITY s Risk Manager a
Certificate of Insurance evidencing general comprehensive liability insurance coverage CGL
providing coverage of at least 1 000 000 per occurrence for bodily injury and 500 000 per
occurrence for property damage This Certificate of Insurance shall be subject to approval by the
CITY s Risk Manager as to company terms and coverage and said approval shall not be
unreasonably withheld The CGL shall name the CITY as an additional insured and must fully
protect the CITY from any and all claims and risks and losses in connection with any activities
or omissions by the CONCESSIONAIRE by virtue of this Agreement The CGL policy shall
remain in full force and effect at the CONCESSIONAIRE s sole expense for liability for
property damage or personal injury that may occur in connection with activities or omissions by
the CONCESSIONAIRE and provide coverage for the full term of this Agreement
CONCESSIONAIRE shall insure that the CITY s Risk Manager is given thirty calendar days
prior written notice by certified mail of any cancellation lapse reduction or modification of
such insurance
8 5 3 Release and Waiver of Subrogation Any policy of insurance carried by either
CITY or CONCESSIONAIRE pursuant to any obligation under this Agreement shall to the
extent available contain a waiver of subrogation clause on the part of the insurer Such waiver
shall apply to damages to adjacent property Notwithstanding any other provision of this
Agreement neither CITY nor CONCESSIONAIRE shall be liable to the other party or to any
insurance company by subrogation or otherwise insuring the other party for any loss or damage
to any building structure or tangible personal property of the other occurring in or about the
Premises or PARK even though such loss or damage might have been occasioned by the
negligence of such party its agents or employees if such loss or damage is covered by insurance
issued by an insurance carrier authorized or licensed by the Insurance Commissioner of the State
of Washington to issue lines of insurance benefiting the party suffering such loss or damage or
was required under the terms of this Agreement to be covered by insurance by the party covering
the loss
8 6 Hold Harmless Indemnification Industrial Insurance
8 6 1 Hold Harmless Indemnification Each party hereto agrees to be responsible
and assumes liability for its own wrongful or negligent acts or omissions or those of its officers
agents or employees to the fullest extent required by law Each party agrees to save indemnify
defend or hold the other party harmless against all liability loss damages and expenses
including costs and attorney s fees resulting from actions claims and lawsuits arising or alleged
to have arisen in whole or in part out of or in consequence of the acts or failures to act of the
other party its employees its subcontractors its agents or its assigns which arise in any way
out of the performance of this Agreement In the case of negligence of both the CITY and the
CONCESSIONAIRE any damages allowed shall be levied in proportion to the percentage of
negligence attributable to each party and each party shall have the right to seek contribution
from the other party in proportion to the percentage of negligence attributable to the other party
20
8 6 2 Industrial Insurance The PARTIES have specifically negotiated
CONCESSIONAIRE s waiver of its immunity under Title 51 RCW which is hereby waived for
purposes of CONCESSIONAIRE s indemnification and hold harmless of the CITY including
the duty to defend This provision shall be inapplicable to the extent such action claim or
lawsuit is judicially found to arise solely from the acts or failures to act of the CITY
8 7 Successors Assigns The CITY and CONCESSIONAIRE each agree to be bound to the
other party in respect to all covenants agreements and obligations contained in this contract
Except as provided in Article 6 herein neither party shall assign the contract in part or as a
whole without the written consent of the other Except as provided in Article 6 herein the
CONCESSIONAIRE shall not subcontract any of the Premises services facilities or equipment
or delegate any of its duties under this Agreement without the prior written approval of the
CITY The CITY acknowledges that the CONCESSIONAIRE shall be authorized to sub
concession areas within the Premises to food and beverage purveyors equipment sales and
similar supporting concessions When requested approval by the CITY of a subcontract or
assignment shall not be unreasonably withheld In the event of an assignment subcontracting or
delegation of duties the CONCESSIONAIRE shall remain responsible for the full and faithful
performance of this Agreement and the assignee subcontractor or other obligor shall also
become responsible to the CITY for the satisfactory performance of the services facilities or
equipment assumed The CITY may condition approval upon the delivery by the assignee
subcontractor or other obligor of its covenant to the CITY to fully and faithfully complete the
requirements or responsibility undertaken under this Agreement Notwithstanding the foregoing
provided CONCESSIONAIRE is not in default the CONCESSIONAIRE may assign its interest
in this Agreement without seeking CITY s consent to a parent or subsidiary Except as otherwise
provided herein all of the covenants conditions and provisions of this Agreement are binding
upon and inure to the benefit of the PARTIES and their respective heirs personal
representatives successors and assigns
8 8 Bankruptcy Except as provided in Article 6 herein PARTIES agree that if the
CONCESSIONAIRE is adjudged bankrupt either voluntarily or involuntarily then this
AGREEMENT at the option of the CITY may be terminated effective on the day and at the
time the bankruptcy petition is filed
8 9 Compliance with Laws The CONCESSIONAIRE its officers employees and agents shall
comply with applicable federal state county and local laws statutes rules regulations and
ordinances in performing its obligations under this Agreement Such compliance shall include
abiding by all applicable federal state and local policies to ensure equal employment opportunity
based on ability and fitness to all persons regardless of race creed color national origin
religion sex physical handicaps or age The CONCESSIONAIRE shall comply with applicable
laws pertaining to employment practices and employee treatment Conditions of the Federal
Occupational Safety and Health Act of 1970 OSHA the Washington Industrial Safety and
Health Act of 1973 WISHA and standards and regulations issued under these Acts must be
complied with The CONCESSIONAIRE agrees to indemnify and hold harmless the City from
21
all damages assessed for the CONCESSIONAIRE s failure to comply with the Acts and
Standards issued thereunder The CONCESSIONAIRE is also responsible for meeting all
pertinent local state and federal health and environmental regulations and standards applying to
any operation in the performance of this Agreement
8 10 Nondiscrimination PARTIES shall not discriminate in employment or services to the
public on the basis of race color national origin sex religion age marital status or disability
except for employment actions based on bona fide occupational qualification
8 11 Choice of Law Venue This Agreement shall be interpreted according to the laws ofthe
State of Washington Any judicial action to resolve disputes arising out of this Agreement shall
be brought in Kitsap County Superior Court
8 12 Costs Attorneys Fees In any action brought to enforce any provision of this
Agreement including actions to recover sums due or for the breach of any covenant or condition
of this Agreement or for the restitution of the Premises to the CITY or eviction of the
CONCESSIONAIRE during the term or after expiration thereof the substantially prevailing
party shall be entitled to recover from the other party all reasonable costs and reasonable
attorney s fees incurred including the fees of accountants appraisers and other professionals at
trial or on appeal and without resort to suit
8 13 Modification This Agreement may only be modified by written instrument signed by both
PARTIES
8 14 Change in LawlRenegotiation The PARTIES agree that changes in federal state or local
laws or regulations that materially modify the terms and conditions of the Agreement and result
in a detrimental change in circumstances or a material hardship for either party in performing
this Agreement may be the subject of a request by a requesting party to renegotiate this
Agreement or negotiate Agreement amendments and the responding party agrees to renegotiate
fairly with the requesting party
8 15 Force Majeure Provided that all other requirements ofthis Agreement are met any party
shall not be deemed to be in default and shall not be liable for failure to perform under this
Agreement if that party s performance is prevented or delayed by acts of God including
landslides lightning forest fires storms floods freezing and earthquakes civil disturbances
acts of the public enemy wars blockades public riots breakage explosions accident to
machinery equipment or materials unavailability of required materials governmental restraint
or other causes whether ofthe kind enumerated or otherwise which are not reasonably within
the control ofthat obligated party Force Majeure If as a result of a Force Majeure event an
obligated party is unable wholly or partially to meet its obligations under this Agreement it shall
give the other party promptly written notice of the Force Maj eure event describing it in
reasonable detail The obligated party s obligations under this Agreement shall be suspended but
only with respect to the particular component of obligations affected by the Force Majeure and
only for the period during which the Force Majeure exists
22
8 16 Waiver Failure to enforce any provision of this Agreement shall not be deemed a waiver
of that provision No waiver of any right or obligation of either party hereto shall be effective
unless in writing specifying such waiver executed by the party against whom such waiver is
sought to be enforced Waiver of any right or power arising out ofthis Agreement shall not be
deemed waiver of any other right or power
8 17 Illegal Provisions Severability Should any part of this Agreement be found void
illegal or unenforceable the balance of the Agreement shall remain in full force and effect
8 18 Article Headings Gender Number Article paragraph headings are not to be construed
as binding provisions of this concession they are for the convenience of the PARTIES only The
masculine feminine singular and plural of any word or words shall be deemed to include and
refer to the gender and number appropriate in the context
8 19 Entire Agreement This Agreement and its Exhibits constitutes the entire agreement
between the PARTIES and the PARTIES acknowledge that there are no other agreements
written or oral that have not been set forth in the text of this Agreement
8 20 Counterparts This Agreement may be executed simultaneously in two or more
counterparts each of which shall be deemed an original but all of which together shall constitute
one and the same instrument
8 21 Recording Following execution of this Agreement the CITY will cause a Memorandum of
Concession Agreement to be recorded with the land use records of Kit sap County Washington
A copy of the Memorandum of Concession Agreement is attached hereto as Exhibit D
IN WITNESS WHEREOF this Agreement has been entered into between the City of
BGmerton and Olympic Soccer Sports Center LLC as ofthe day of
l her 2006
OLYMPIC SOCCER SPORTS CENTER LLC
a Washington limited liability company
By
DennIS Michael Manager
23
ST ATE OF WASHINGTON
ss
COUNTY OF KITSAP
On thi day of CJek b r 2006 before me personally appeared
V nIS M ll nf1e I to me known to be the MonaaQ Y of OLYMPIC
SOCCER SPORTS CENTER LLC a Washington limited habIhty company that executed
the within and foregoing instrument and acknowledged the said instrument to be the free and
voluntary act and deed of said corporation for the uses and purposes therein mentioned and on
oath stated that he was authorized to execute and in fact executed said instrument on behalf of
the corporation
bL DA4 Ur
GIven U1d officIal seal thls0OI J day of 2006
SSION t I
O TA TypelPrint Na1iWc tL
Notary Public in and for the
fl UBL
i
State of Washington residing at
4
j 2 7 J 0 My Commission expires 2 J JII0lOFWASl
CITY OF BREMItRTON
a Washington muniCiP CO
BY
Cary Bozeman Mayor
APPROVED AS TO FORM
Roger A Lubovich City Attorne
ATTEST
24
STATE OF WASHINGTON
ss
COUNTY OF KlTSAP
I certify that I know or have satisfactory evidence that CARY BOZEMAN is the person who
appeared before me and acknowledged that he signed this instrument on oath stated that he was
authorized to execute the instrument and acknowledged it as the Mayor of the CITY OF
BREMERTON to be the free and voluntary act of such party for the uses and purposes
mentioned in the instrument
Given
under
s
official seal this n da
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@o 0 SSION 0
0 TypelP nnt Name v1J
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J o8 01 AI ioo Notary Public in and for the
t State of Washington residing at wt Ai A
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My Commission expires 30 a l
003 27 o o
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OF WASyI
LIST OF EX if
Exhibit A Legal Description of Premises
Exhibit B Preliminary Building and Site Plans
Exhibit C Appraisal and Compensation Information
Exhibit D Memorandum of Concession Agreement
R Legal LegalFiles Current Active Files Olympic SoccerAmendment No 1 Fina1 doc
25
EXHIBIT A
Legal Description for Soccer Concession at Pendergast Park
A portion ofthe Northeast quarter ofthe Southwest quarter Section 21 Township 24 North
Range 1 East Williamette Meridian which is more particularly described as follows
Beginning at the East quarter comer of said Section 21 thence along the East West
centerline of said Section 21 N 88050 50 W 5316 00 feet to the West quarter comer of
said Section 21 thence S 65016 01 E 212547 feet to an existing comer of the building for
Olympic Sports and Soccer Center also being the True Point of Beginning thence along
said building N 89018 55 E 10042 feet thence S 0048 13 E 44 56 feet thence N
89011 47 E 54 86 feet thence S 0049 09 E 113 85 feet thence S 89017 18 W 54 89
feet thence S 0015 19 E 52 06 feet thence leaving said building S 0015 19 E 14 62 feet
thence S 89014 46 W 199 87 feet thence N 0046 54 W 200 00 feet thence N 89018 55
E 100 00 feet to the said building for Olympic Sports and Soccer Center thence along said
building N 0046 54 W 2524 feet to the True Point of Beginning
Together with and subject to a 15 foot maintenance and access buffer adjacent to and
abutting above described concession
Together with ingress and egress to and from the public right of way Union Avenue
over and upon the City parks properties and roadway to the above described concession
Said ingress and egress shall terminate with said concession
Said concession area to constitute 48 829 square feet and with said maintenance and
access buffer 64 157 square feet
OLYMPIC SOCCER EXPANSION
A PORTION OF SECTION 21 TOWNSHIP 24 NORTH RANGE 1 EAST W M
BREMERTON WASHINGTON
GRADING DRAINAGE AND SANITARY SEWER AND TESC PLAN
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21
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EXHIBIT C
Valoe and Compensation
CESSIID SI
June 2001 concession site area
Addition to concession site area
Total Concession Site Area
30 000 square feet
20 000 square feet
50 000 square feet
June 2001 value for 30 000 square feet
0 138 per sq ft x 30 000
Determining new concession value
1 0 20 per sq ft for the June 2001 concession site
area and proposed addition 50 000 sq ft
0 20 per sq ft x 50 000 10 000 00
2 Add 2 000 00 for outdoor lighting and parking
3 Add 9 000 for field use 150 hours x 60 Ihr
Total Concession Valoe 21 000 00
1 qiERil I J jSW1jj
150 hours of field time valued at 60 per hour 9 000
Concession value 21 000 minus field time 9 000 12 000 per year monetary
compensation
Return Address Attn City Clerk
City ofBremerton
345 6TH Street Suite 600
Bremerton WA 98337
I I 111111I11111 lllIlllil 111I1 J JQ 4
t3J IJ Kltsap Co IA
AUDITORRECORDER S INDEXING FORM
Document Title s 1 Mtmorandum of First Amended Concession Agreement
Reference Number s of Documents assign ed or released Amends and Replaces 200108170289
Grantor s 1 City of Bremerton City
D Additional names on page of document
Grantee s 1 Olympic Soccer Sports Center LLC Concessionaire
D Additional names on page of document
Legal Description Ptn NE SW S21 T24N R1E W M Kitsap County W A
abbreviated
o Additional legal is on page Exhibit A of document
Assessor s Property Tax ParcelAccount Number 212501 3 005 2001
MEMORANDUM OF FIRST AMENDED CONCESSION AGREEMENT
This Memorandum of First Amended Concession Agreement is entered into on the date
fully executed below by and between the City ofBremerton a Washington municipal corporation
hereinafter referred to as City and Olympic Soccer Sports Center LLC a Washington
limited liability company hereinafter referred to as Concessionaire
1 Qity and Concessionaire entered into a First Amended Concession Agreement
Between the City ofBremerton and Olympic Soccer Sports Center LLC the Agreement on
th day of Jt 10 be V 2006 for the purpose of constructing operating and
maintaining an indoor athletic facility and other improvements The First Amended Concession
Agreement amends and replaces that certain Concession Agreement recorded on August 17 2001
in the records of Kitsap County under Auditor s File No 200108170289 and is for a term of
fifteen 15 years commencing June 1 2001 with three 3 successive ten 10 year options to
renew as specified in the Agreement All of the foregoing are set forth in the Agreement
MEMORANDUM OF FIRST AMENDED CONCESSION AGREEMENT 1
2 The property which is the subject ofthe Agreement is legally described in Exhibit
A attached hereto and incorporated by reference
IN WITNESS WHEREOF the parties have executed this Memorandum of First Amended
Concession Agreement as of the day and year first above written
BY
Print Name Cary Bozeman
Its Mayor
DATE OCj36 I
2 1 a
CONCESSIONAIRE
OL YMPIC SOCCER SPORTS
CENTER LLC
CITY
CITY OF BREMERTON
By Lv Ik w9
Print Name Dennis Michael
Its Manager
DATE cc c be 3J j ZCofo
STATE OF WASHINGTON
ss
COUNTY OF KITSAP
I hereby certify that I know or have satisfactory evidence that Cary Bozeman is the person
who appeared before me and said person acknowledged that he signed this instrument on oath
stated that he is authorized to execute the instrument on behalf of the City of Bremerton as its
Mayor and such execution to be the free and voluntary act of such party for the uses and purposes
mentioned in the foregoing instrument
Notary Seal Must Appear Within This Box
CI I
IN WITNESS WHEREOF I have hereunto set my hand and official seal thi day of
L m iaJA 2006
t V S
V yhh
01 0 0 0 0 0 Q
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S5 ONEt oo f11pJ MIA V JWf rvf
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SO NOTARY PUBLIC in and for the State
ir
G of Washington residing at 6VeflN rfnA 1A
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My appointment expires
003 21 00 O
1 0 0 0 0 00 0
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MEMORANDUM OF FIRST AMENDED CONCESSION AGREEMENT 2
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BREMER TON CITY OF t 1A
200612130124
Pctge 2 of 4
12 13 2006 01 15P
Kitsctp Co JA35OEl
STATE OF WASHINGTON
ss
COUNTY OF KITSAP
I hereby certify that I know or have satisfactory evidence that Dennis Michael is the person
who appeared before me and said person acknowledged that he signed this instrument on oath
stated that he is authorized to execute the instrument on behalf of the Olympic Soccer Sports
Center LLC as its Manager and such execution to be the free and voluntary act of such party for the
uses and purposes mentioned in the foregoing instrument
Notary Seal Must Appear Within This Box
IN WITNESS WHEREOF I have hereunto set my han d official seal this day of
r 2006 f I
J A V VJ Y
o
lSi J V 0
SSIONq Ire MQ 0v1PyV
vo 0 T 4i
1 NOTARY PUBLIC in and for the St t
WjofWashingtonresidingattflWYA
c1 olJV8 S My appointment expires t rl 0
0 21 0
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1111111111 1111111111 II
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MEMORANDUM OF FIRST AMENDED CONCESSION AGREEMENT 3
EXHIBIT A
Legal Description for Soccer Concession at Pendergast Park
A portion of the Northeast quarter ofthe Southwest quarter Section 21 Township 24 North
Range 1 East Williamette Meridian which is more particularly described as follows
Beginning at the East quarter comer of said Section 21 thence along the East West
centerline of said Section 21 N 88050 50 W 5316 00 feet to the West quarter comer of
said Section 21 thence S 65016 01 E 212547 feet to an existing comer of the building for
Olympic Sports and Soccer Center also being the True Point of Beginning thence along
said building N 89018 55 E 10042 feet thence S 0048 13 E 44 56 feet thence N
89on 4TE 54 86 feet thence S 0049 09 E 113 85 feet thence S 89017 18 W 54 89
feet thence S 0015 19 E 52 06 feet thence leaving said building S 0015 19 E 14 62 feet
thence S 89014 46 W 199 87 feet thence N 0046 54 W 200 00 feet thence N 89018 55
E 100 00 feet to the said building for Olympic Sports and Soccer Center thence along said
building N 0046 54 W 2524 feet to the True Point of Beginning
Together with and subject to a 15 foot maintenance and access buffer adjacent to and
abutting above described concession
Together with ingress and egress to and from the public right of way Union Avenue
over and upon the City parks properties and roadway to the above described concession
Said ingress and egress shall terminate with said concession
Said concession area to constitute 48 829 square feet and with said maintenance and
access buffer 64 157 square feet
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February 23, 2022
To: Bremerton City Council and Mayor Greg Wheeler
RE: Advisory Report on Request to Amend the Concession Agreement with Olympic Soccer & Sports
Center, LLC
Per the procedures contained within “The Ordinance Providing Protection for Bremerton’s Parks, Play
Fields, Open Spaces and Recreation Facilities” (BMC 13.12), the Bremerton Parks and Recreation
Commission is pleased to present this Advisory Report on the proposed assignment and renewal option
extension to the Concession Agreement with Olympic Soccer and Sports Center, LLC.
The Parks and Recreation Commission has reviewed the proposal and believe that it is in the best interest
of the City and the Parks and Recreation Department to recommend approval of the request to assign the
concession agreement to Bremerton Sports Center and add one 10-year renewal option to the current
concession agreement.
In its review, the Commission considered this proposal at its regularly scheduled Commission meeting:
February 22, 2022 Parks & Recreation Commission public meeting.
A motion was made and approved unanimously to recommend City Council approve the Second
Amendment to the Concession Agreement between City of Bremerton and Olympic Soccer & Sports
Center, LLC adding an additional 10-year renewal option and assigning the concession agreement to
Bremerton Sports Center.
If you have any questions, the Commission is available.
____________________________
Benjamin Burnette, Chair
680 LEBO B OULEVARD • BREMERTON, WA 98310-5841
TEL: 360.473.5305, FAX: 360.473.5882 • www.ci.bremerton.wa.us
BREMERTON PARKS AND RECREATION COMMISSION
AGENDA BILL
CITY OF BREMERTON
CITY COUNCIL
SUBJECT: Proposed Public Hearing for
Ordinance amending Chapter 3.78 of the
Bremerton Municipal Code (BMC) entitled
“Multifamily Property Tax Exemption”
Study Session Date: March 9, 2022
COUNCIL MEETING Date: March 16, 2022
Department: DCD
Presenter: Garrett Jackson
Phone: (360) 473-5289
SUMMARY: In order to prioritize the creation of affordable housing, Mayor Wheeler has directed staff
to propose code revisions to the Multifamily Property Tax Exemption (MFTE) program authorized
under BMC 3.78 for City Council’s consideration. In October 2006 the Bremerton City Council
enacted the City’s implementation of the State’s Multi Family Tax Exemption (MFTE) tool to
encourage housing growth. What is an MFTE? It allows certain development improvements to be
exempt from ad valorem property taxes for a period of time (8 to 12 years depending on the type of
housing units), and its often an important tool to make projects move forward from an investment
standpoint.
Why would the City adopt a program like this? It was originally established to encourage increased
residential opportunities within designated target areas and it was intended to stimulate new
construction and rehabilitation of existing buildings. At the time that this program was adopted the
city’s growth and development was lacking, and it was believed that this was an important incentive
to encourage housing growth. Now, nearly 16 years since the initial adoption of the MFTE program,
the city is experiencing record breaking permit activity, and our housing prices are climbing.
Given these indicators of increased growth and revitalization, it is important to take a look at the
MFTE tool and ensure that the City’s implementation of this program is used to incentivize growth in
areas where we are lacking. In order to shift the purpose of the program to a focus on affordable
housing, the following revisions are proposed:
Discontinuing the 8 year “market rate” housing development option
Requiring the affordable units be affordable to low-income households
Ensuring that there are affordable units across all unit sizes in a project
Add provisions for tenant relocation assistance
Add new options for longer 20 year tax exemption pursuant to State law
Allow projects that are currently close to submittal adequate time to make complete
applications – the proposed changes would begin on July 1, 2022.
ATTACHMENTS:
Proposed ordinance that revises the MFTE program to focus on affordable housing.
FISCAL IMPACTS (Include Budgeted Amount): The current MFTE program is in place and the city
is not receiving property taxes on land improvements for projects utilizing the program. This would
continue for projects that qualify under the program only if they include an affordable housing units.
STUDY SESSION AGENDA: ☐ Limited Presentation ☒ Full Presentation
STUDY SESSION ACTION: ☐ Consent Agenda ☐ General Business ☒ Public Hearing
RECOMMENDED MOTION: Move to pass Ordinance No. _________ amending Chapter 3.78 BMC
by adopting revisions to the Multifamily Property Tax Exemption terms and definitions, as described
in the ordinance.
COUNCIL ACTION: Approve Deny Table Continue No Action
Form Updated 01/02/2018
A7
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ORDINANCE NO. ____
AN ORDINANCE of the City Council of the City of
Bremerton, Washington, amending certain provisions of Chapter
3.78 of the Bremerton Municipal Code related to the terms and
eligibility requirements, eliminating the eight (8) year exemption,
and changing the project eligibility requirements for the twelve (12)
year exemption to provide housing affordable to low income
households and relocation assistance, and adding a twenty (20) year
exemption for permanent affordable housing, and adding process for
exemption extensions.
WHEREAS, exemptions from ad valorem property taxes for multifamily housing
encourage increased residential opportunities within designated residential targeted areas,
stimulate new construction and rehabilitation of existing buildings, assist in directing future
population growth and helps to achieve development densities which are more conducive to
transit use in designated residential targeted areas; and
WHEREAS, on October 4, 2006, the City Council of the City of Bremerton,
Washington, passed Ordinance No. 4968 adopting Chapter 3.78 of the Bremerton Municipal
Code (“BMC”) establishing exemptions from ad valorem property taxation for new multifamily
housing in designated residential targeted areas of the City and established a residential targeted
area for the Multifamily Tax Exemption (MFTE) within the Downtown Regional Center; and
WHEREAS, the City Council and State Legislature have frequently amended and
updated the requirements and eligibility relating to multifamily tax exemptions and added
additional target areas that align with the City’s Comprehensive Plan growth centers; and
WHEREAS, on May 3, 2021, the State Legislature passed E2SSB 5287 amending
Chapter 84.14 RCW relating to multifamily tax exemptions; and
WHEREAS, the City Council desires the Multifamily Tax Exemption program to
focus solely on affordable housing; and
WHEREAS, the proposed revisions eliminate the eight (8) year exemption,
remove the moderate income allowance for the twelve (12) year exemption, amend the definition
of low-income housing, amend language relating to tenant displacement, add a twenty (20) year
exemption, and make other related changes, in order to focus the Multifamily Tax Exemption
program on the low income households; and
WHEREAS, the proposed revisions to the requirements for the multifamily
property tax exemption are allowed per Chapter 84.14 RCW; and
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Exemption Amendments - 2022
WHEREAS, on March 3, 2022, the public was notified by a legal advertisement
in the Kitsap Sun of the opportunity to make comment and participate in the public hearing by
the City Council; and
WHEREAS, in recent years the City has experienced growth and revitalization of
market rate housing, however new affordable housing development has not followed the same
growth trend; and
WHEREAS, on March 16, 2022, the City Council conducted a public hearing and
considered all testimony; NOW THEREFORE;
THE CITY COUNCIL OF THE CITY OF BREMERTON, WASHINGTON, DOES
HEREBY ORDAIN AS FOLLOWS:
SECTION 1. Recitals. The recitals set forth above are hereby adopted and
incorporated as set forth herein in full.
SECTION 2. BMC 3.78.010 Amended. Section 3.78.010 of the Bremerton
Municipal Code entitled “Purpose" is hereby amended to read as follows:
3.78.010 PURPOSE
As provided for in Chapter 84.14 RCW, the purpose of this chapter is to provide limited
exemptions from ad valorem property taxation for multifamily housing in designated residential
targeted areas to:
(a) Encourage increased affordable residential opportunities, including affordable
housing units, within areas of the City designated by the City Council as residential targeted
areas; and/or
(b) Stimulate new construction or rehabilitation of existing vacant and underutilized
buildings for multifamily housing in designated residential targeted areas to increase and
improve housing opportunities, including affordable housing; and
(c) Assist in directing future population growth to designated residential targeted areas,
thereby reducing development pressure on single-family residential neighborhoods; and
(d) Achieve development densities which are more conducive to transit use in
designated residential targeted areas.
SECTION 3. BMC 3.78.020 Amended. Section 3.78.020 of the Bremerton
Municipal Code entitled “Definitions" is hereby amended to read as follows:
3.78.020 DEFINITIONS.
When used in this chapter, the following terms shall have the following meanings, unless
the context indicates otherwise:
(a) "Affordable housing" means residential housing that is rented by a person or
household whose monthly housing costs, including utilities other than telephone, do not exceed
thirty (30) percent of the household’s monthly income. For the purposes of housing intended for
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Multifamily Property Tax
Exemption Amendments - 2022
owner occupancy, "affordable housing" means residential housing that is within the means of
low- or moderate-income households.
(b) "Building codes" means the City and state building and fire codes as set forth in
Chapters 17.04, 18.02 and 18.03 BMC.
(c) "City" means the City of Bremerton.
(d) "Department" means the City Department of Community Development.
(e) "Director" means the Director of the Department of Community Development, or
designee.
(f) "High-cost area" means a county where the third quarter median house price for the
previous year as reported by the Washington Center for Real Estate Research at Washington
State University is equal to or greater than one hundred thirty (130) percent of the statewide
median house price published during the same time period.
(f) "Household" means a single person, family, or unrelated persons living together.
(g) "Low-income household" means a single person, family, or unrelated persons living
together whose adjusted income is at or below eighty (80) sixty (60) percent of the median
family income adjusted for family size, for the county where the project is located, as reported by
the United States Department of Housing and Urban Development. For cities located in high-cost
areas, "low-income household" means a household that has an income at or below one hundred
(100) percent of the median family income, adjusted for family size, for the county where the
project is located.
(i) "Moderate-income household" means a single person, family, or unrelated persons
living together whose adjusted income is more than eighty (80) percent but is at or below one
hundred fifteen (115) percent of the median family income adjusted for family size, for the
county where the project is located, as reported by the United States Department of Housing and
Urban Development. For cities located in high-cost areas, "moderate-income household" means a
household that has an income that is more than one hundred (100) percent, but at or below one
hundred fifty (150) percent, of the median family income adjusted for family size, for the county
where the project is located.
(h) "Multifamily housing" means a building having ten (10) or more dwelling units not
designed or used as transient accommodations and not including hotels and motels. Multifamily
units may result from new construction or rehabilitated or conversion of vacant, underutilized, or
substandard buildings to multifamily housing.
(i) "Multifamily property tax exemption" means an exemption from ad valorem
property taxation for multifamily housing.
(j) "Owner" means the property owner of record.
(k) "Permanent residential occupancy" means multiunit housing that provides either
rental or owner occupancy on a nontransient basis. This includes owner-occupied or rental
accommodation that is leased for a period of at least one (1) month. This excludes hotels and
motels that predominantly offer rental accommodation on a daily or weekly basis.
(m) "Rehabilitation improvements" means modifications to existing structures that are
vacant for twelve (12) months or longer that are made to achieve a condition of substantial
compliance with existing building, fire, and zoning codes, or modification to existing occupied
structures which increase the number of multifamily housing units.
(n) "Residential targeted area," also "residential target area," means the geographic area
located within the areas set forth in Figures 3.78(a) through 3.78(g).
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Multifamily Property Tax
Exemption Amendments - 2022
(o) "Substantial compliance" means compliance with all local building, fire and zoning
code requirements, which are typically required for rehabilitation as opposed to new
construction.
SECTION 4. BMC 3.78.040 Amended. Section 3.78.040 of the Bremerton
Municipal Code entitled “Terms of the Tax Exemption" is hereby amended to read as follows:
3.78.040 TERMS OF THE TAX EXEMPTION.
(a) Duration of Exemption. The value of new housing construction, conversion, and
rehabilitation improvements qualifying under this chapter is exempt from ad valorem property
taxation, as follows:
(1) For properties for which applications for certificates of tax exemption
eligibility are submitted under this chapter before July 22, 2007, the value is exempt for ten (10)
successive years beginning January 1st of the year immediately following the calendar year of
issuance of the certificate; and
(2) For properties for which applications for certificates of tax exemption
eligibility are submitted under this chapter on or after July 22, 2007, the value is exempt:
(i) For eight (8) successive years beginning January 1st of the year
immediately following the calendar year of issuance of the certificate; or
(ii) For twelve (12) successive years beginning January 1st of the year
immediately following the calendar year of issuance of the certificate, if the property otherwise
qualifies for the exemption under this chapter and meets the conditions in this subsection
(a)(2)(ii). For the property to qualify for the twelve (12) year exemption under this subsection,
the applicant must commit to renting or selling at least twenty (20) percent of the multifamily
housing units as affordable housing units to low- and moderate-income households, and the
property must satisfy that commitment and any additional affordability and income eligibility
conditions adopted by the local government under this chapter. In the case of projects intended
exclusively for owner occupancy, the minimum requirement of this subsection (a)(2)(ii) may be
satisfied solely through housing affordable to moderate-income households.
(1) For twelve (12) successive years beginning January 1st of the year
immediately following the calendar year of issuance of the certificate, if the property otherwise
qualifies for the exemption under this chapter and meets the conditions in this subsection (a)(1).
For the property to qualify for the twelve (12) year exemption under this subsection, the
applicant must commit to renting or selling at least twenty (20) percent of the multifamily
housing units as affordable housing units to low-income households, and the property must
satisfy that commitment and any additional affordability and income eligibility conditions
adopted by the local government under this chapter.
(i) Low-income household units shall be dispersed throughout the
development and be apportioned among all unit types (ie. studio, single bedroom, double
bedroom etc.) based on the number of each unit type to the extent feasible.
(2) For twenty (20) successive years beginning January 1st of the year
immediately following the calendar year of issuance of the certificate, if the property otherwise
qualifies for the exemption under this chapter and meets the conditions in this subsection BMC
3.78.040(a)(2). To qualify for the exemption under this subsection, the applicant must commit to
renting at least 20 percent of the dwelling units as affordable to low-income households for a
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Multifamily Property Tax
Exemption Amendments - 2022
term of at least 99 years, and the property must satisfy that commitment and all required
affordability and income eligibility conditions adopted by the City under this chapter. The
applicant shall record a covenant or deed restriction that ensures the continuing rental of units
subject to these affordability requirements consistent with the conditions in this subsection
3.78.040(a)(2) for a period of no less than 99 years. The covenant or deed restriction must also
address criteria and policies to maintain public benefit if the property is converted to a use other
than which continues to provide for permanently affordable low-income housing consistent with
this subsection 3.78.040(a)(2);
(i) Low-income household units shall be dispersed throughout the
development and be apportioned among all unit types (ie. studio, single bedroom, double
bedroom etc.) based on the number of each unit type to the extent feasible.
(b) Limits on Exemption. The exemption does not apply:
(1) To the value of land or to the value of nonhousing-related improvements not
qualifying under this chapter.
(2) In the case of rehabilitation of existing buildings, to the value of
improvements constructed prior to submission of the completed application required under this
chapter.
(3) To increases in assessed valuation made by the Kitsap County Assessor on
non-qualifying portions of building or other improvements and value of land nor to increases
made by lawful order of a County board of equalization, the Department of Revenue, or Kitsap
County, to a class of property throughout the County or specific area of the County to achieve
the uniformity of assessment or appraisal required by law.
(c) Conclusion of Exemption. At the conclusion of the exemption period, the new or
rehabilitated housing cost shall be considered as new construction for the purposes of Chapter
84.55 RCW.
SECTION 5. BMC 3.78.050 Amended. Section 3.78.050 of the Bremerton
Municipal Code entitled “Project Eligibility" is hereby amended to read as follows:
3.78.050 PROJECT ELIGIBILITY.
A proposed multifamily housing project must meet the following requirements for
consideration for a property tax exemption:
(a) Location. The project must be located within a residential targeted area as defined
in BMC 3.78.020 and as set forth in Figures 3.78(a) through 3.78(g).
(b) Tenant Displacement Prohibited. The project must not displace existing
residential tenants of structures that are proposed for redevelopment. If the property proposed to
be rehabilitated is not vacant, an applicant shall provide each existing tenant housing of
comparable size, quality, and price and a reasonable opportunity to relocate.
(1) General Notification. The applicant shall provide each displaced
household at least 12-month’s moving notice, unless mutually agreed otherwise by household
and applicant.
(2) Relocation Assistance. Low Income Households shall be provided the
following:
(i) Assistance in securing housing of comparable size, quality, and price
which meets the Housing and Urban Development’s Uniform Physical Condition Standards or a
similar standard acceptable to the City, and
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Multifamily Property Tax
Exemption Amendments - 2022
(ii) First and last month expenses at the new housing location as defined
above, and moving and relocating expenses as defined by the Department of Transportation
Fixed Residential Moving Costs Schedule.
(c) Noncompliance with Building Codes. Existing dwelling units proposed for
rehabilitation must fail to comply with one or more standards of the applicable State or City
building codes.
(d) Size of Project. The new, converted, or rehabilitated multiple-unit housing must
provide for a minimum of fifty (50) percent of the space for permanent residential occupancy.
The project, whether new, converted, or rehabilitated multiple-unit housing, must include at least
ten (10) units of multifamily housing within a residential structure or as part of an urban
development. In the case of existing multifamily housing that is occupied or which has not been
vacant for twelve (12) months or more, the multifamily housing project must also provide for a
minimum of four (4) additional multifamily units for a total project of at least ten (10) units
including the four (4) additional units. Existing multifamily housing that has been vacant for
twelve (12) months or more does not have to provide additional units.
(e) Proposed Completion Date. New construction of multifamily housing and
rehabilitation improvements must be completed within three (3) years from the date of approval
of the application.
(f) Compliance with Guidelines and Standards. The project must be designed to comply
with the City’s Comprehensive Plan, building, housing, and zoning codes, and any other
applicable regulations. The project must also comply with any other standards and guidelines
adopted by the City Council for the residential targeted area.
SECTION 6. BMC 3.78.070 Amended. Section 3.78.070 of the Bremerton
Municipal Code entitled “Application for Conditional Certificate" is hereby amended to read as
follows:
3.78.070 APPLICATION FOR CONDITIONAL CERTIFICATE.
The Director may certify as eligible an application which is determined to comply with
the requirements of this chapter. A decision to approve or deny an application shall be made
within ninety (90) calendar days of receipt of a complete application.
(a) Application. The Director may approve the application if he/she finds that:
(1) A minimum of ten (10) new units are being constructed or in the case of
occupied rehabilitation or conversion within twelve (12) months of occupancy, a minimum of
four (4) additional multifamily units for a total project of at least ten (10) units including the four
(4) additional multifamily units are being developed.
(2) The proposed project is or will be, at the time of completion, in conformance
with all applicable local plans and regulations.
(3) The owner has complied with all standards and guidelines adopted by the
City under this chapter.
(4) The site is located in the residential targeted area.
(5) If applicable, theThe proposed multiunit housing project meets the
affordable housing requirements as described in BMC 3.78.040.
(b) Approval of Application. If an application is approved, the applicant shall enter into
a contract with the City, regarding the terms and conditions of implementation of the project, and
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Exemption Amendments - 2022
the Director shall issue a conditional certificate of acceptance of tax exemption. The conditional
certificate shall expire three (3) years from the date of approval unless an extension is granted as
provided in this chapter.
(c) Denial of Application. If an application is denied, the Director shall state in writing
the reasons for denial and shall send notice to the applicant at the applicant’s last known address
within ten (10) calendar days of the denial.
(d) Appeal. Per RCW 84.14.070, an applicant may appeal a denial to the City Council
within thirty (30) calendar days of receipt of the denial by filing a complete appeal application
and fee with the Director. The appeal before the City Council will be based on the record made
before the Director. The Director’s decision will be upheld unless the applicant can show that
there is no substantial evidence on the record to support the Director’s decision. The City
Council’s decision on appeal will be final.
SECTION 7. BMC 3.78.110 Amended. Section 3.78.110 of the Bremerton
Municipal Code entitled “Annual Compliance Review" is hereby amended to read as follows:
3.78.110 ANNUAL COMPLIANCE REVIEW.
(a) Within thirty (30) calendar days after the first anniversary of the date of filing the
final certificate of tax exemption and each year for the tax exemption period, the property owner
shall be required to file a notarized declaration with the Director indicating the following:
(1) A statement of occupancy and vacancy of the multifamily units during the
previous twelve (12) months;
(2) A certification by the owner that the property has not changed use and, if
applicable, that the property has been in compliance with the affordable housing requirements as
described in RCW84.14.020 since the date of the certificate approved by the City;
(3) A description of changes or improvements constructed after issuance of the
certificate of tax exemption; and
(4) Any information needed by the City to file its report pursuant to subsection
(b) of this section and any additional information requested by the City in regards to the units
receiving a tax exemption.
(b) The City shall report annually consistent with requirements as described in RCW
84.14.100 by December 31st of each year, beginning in 2007, to the Washington State
Department of Commerce Community, Trade, and Economic Development. The report must
include the following information, or as otherwise required per RCW 84.14:
(1) The number of tax exemption certificates granted;
(2) The total number and type of units produced or to be produced;
(3) The number, size, and type of units produced or to be produced meeting
affordable housing requirements;
(4) The actual development cost of each unit produced;
(5) The total monthly rent or total sale amount of each unit produced;
(6) The annual household income and household size for each of the affordable
units receiving a tax exemption and a summary of these figures for the City
(7) The value of the tax exemption for each project receiving a tax exemption
and the total value of tax exemptions granted.
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Multifamily Property Tax
Exemption Amendments - 2022
(c) City staff may also conduct on-site verification of the declaration. Failure to submit
the annual declaration shall result in a review of the exemption per RCW 84.14.110.
SECTION 8. BMC 3.78.140 Added. Section 3.78.140 of the Bremerton
Municipal Code entitled “Extension of Tax Exemption" is hereby added to read as follows:
3.78.140 EXTENSION OF TAX EXEMPTION.
Pursuant to RCW 84.14.020(6), the Administrator may approve an extended exemption
of the project that qualified for, satisfied the conditions of, and utilized the exemption as
provided in BMC 3.78.040(a)(1) from ad valorem property taxation for up to a total of twelve
(12) successive years beginning January 1 of the year immediately following the calendar year
that the original exemption expires.
(a) The owner of property applying for extended exemption under this subsection shall
submit an application to the Administrator on a form established by the Administrator. The
owner shall verify the correctness of the information contained in the application by his/her
signature and affirmation made under penalty of perjury under the laws of the State of
Washington. The application shall contain such information as the Administrator may deem
necessary or useful, which at a minimum shall include:
(1) A statement from the owner acknowledging the potential tax liability when
the property ceases to be eligible for exemption, equivalent to BMC 3.78.060, and
(2) Information required for the Final Exemption Certificate pursuant to
subsections BMC 3.78.100, and
(3) Information required for the annual report pursuant to BMC 3.78.110.
(b) Deadline: The extension application shall be submitted to the Administrator no later
than August 31 of the year of the original exemption expires.
SECTION 9. Figure 3.78(e) of Chapter 3.78 of the Bremerton Municipal Code
entitled “Eastside Employment Center Target Area,” and shown in Exhibit A is hereby repealed
and replaced with Exhibit B, entitled “Eastside Village Center Target Area.”
SECTION 10. 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 11. Effective Date. This ordinance shall take effect and be in force on
July 1, 2022.
PASSED by the City Council the___________ day of ____________________, 2022.
_________________________________
MICHAEL GOODNOW, Council President
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Approved this ________ day of ________________________, 2022.
_________________________________
GREG WHEELER, Mayor
ATTEST: APPROVED AS TO FORM:
__________________________________ ________________________________
City Clerk KYLIE J. FINNELL, City Attorney
PUBLISHED the ________ day of ______________________, 2022.
EFFECTIVE the ________ day of ______________________, 2022.
ORDINANCE NO. ____________
R:\Legal\Legal\Ordinances\Community Development\2022.03.01 Ordinance - 3.78 MFTE.docx
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From: Jim McDonald <jimmc90@gmail.com>
Sent: Friday, March 4, 2022 9:05 PM
To: City Council <City.Council@ci.bremerton.wa.us>; Greg Wheeler
<Greg.Wheeler@ci.bremerton.wa.us>
Subject: MFTE
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 Bremerton City Council members and Mayor Wheeler,
I support the goal of increasing affordable housing and support
some of the changes proposed for the MFTE.
I do have some concerns that the proposed changes will not
"pencil out" for developers. As a result, no new affordable
units will be built. It would be valuable to have some input
from the developers themselves to see if these incentives make
financial sense for them.
I also don't believe the 20 year MFTE will be effective because
the apartment owners would typically sell their buildings after
the benefits of the 20-year tax benefit have expired and the
remaining 79 years of low income housing would be lost.
And I would be interested in knowing the number of properties
that have been developed using the current MTFE
exemption. A few years ago, there were only two properties
that had used the exemption.
Finally, one of the best ways to reduce rental costs is to
increase supply. The proposed changes to the Eastside Village
(even without the MFTE) will help increase supply. I
volunteered on the initial citizen's advisory committee
regarding that Center. Even though the focus was on housing,
the density was not high enough to support any new
development and I applaud the City for revisiting the plan so
quickly.
If you do a quick count of the number of new apartment units
that will be completed later this year in Bremerton and the rest
of the County, you should see some reduction in rental
pressure by year-end; Even without the MFTE.
Thank you for your service! R, Jim McDonald
From: jane Rebelowski <janerebelowski@yahoo.com>
Sent: Wednesday, March 9, 2022 7:30 AM
To: City Council <City.Council@ci.bremerton.wa.us>
Cc: Greg Wheeler <Greg.Wheeler@ci.bremerton.wa.us>
Subject: MFTE
Dear Councilmembers,
The Multi Family Tax Exemption as currently written is fundamentally unfair on multiple points.
Why are we giving any incentives to luxury housing ? Ever? Just like the poorly conceived marketing
plan of “Move to Bremerton “ these incentives have contributed to the escalation of housing costs in
Bremerton.
Why did the former mayor, and Councilmembers artificially set an affordability benchmark based on
Kitsap County incomes instead of Bremerton incomes? This inequality has been pointed out to Council
on multiple occasions with zero reaction.
I am in full support of a tax exemption for affordability multi family housing that is based on Bremerton
incomes. The lower the income threshold the longer the tax exemption.
I consider paying taxes the price of living in a civilized society. While local developers continue to pay
no taxes on improvements for luxury apartments, this retiree has a $500 tax increase on my primary
residence.
Please rescind any tax exemption for “market rate” housing. This discussion is long overdue.
Sincerely,
Jane Rebelowski
1445 17th
Bremerton WA 98337
Sent from my iPhone
From: Victoria Luke <victoria@soundwestgroup.com>
Sent: Wednesday, March 9, 2022 10:03 AM
To: City Council <City.Council@ci.bremerton.wa.us>
Subject: COB City Council Study Session, Comments RE: MFTE Proposed Revisions
RE: MFTE Proposed Revisions
Submitted By: Victoria Luke, Bremerton Citizen
Bremerton currently has an abundance of affordable housing compared to other areas, I learned this when I worked
for the Bremerton Housing Authority. People were moving from all over the state and some, even from out of state to
Bremerton and signing up on the list daily for affordable options, due to the high concentration of affordable
programs.
My past experience from development and planning in Seattle, brought me to Bremerton to grow this community and
re-vitalize it. I sought out to work for local developers and assist every day in my current job to provide the needed
housing to keep up with military demands and natural growth. Bremerton is a Navy town.
Our service workers and DOD make up around 60-70% of the current tenant demographic in Bremerton and
Silverdale. Due to the lack of market rate housing available that works with their BAH, they are currently commuting
from Tacoma to PSNS and Bangor bases, since we do not have enough housing for them in the Kitsap area.
BAH increased in 2021, 2.9%, allowing for current market rents to be “affordable” to the service workers. The 2022
rates range from $1,635 up to $2,793.
The balance of 30-40% non-military and DOD are local with jobs looking for regular housing. We have very few
Seattle commuters that are absorbing the new housing.
Local analysts report a negative vacancy rate in Bremerton due to the housing shortage. A lack of supply will
continue to drive rent prices upward. We need more supply to balance this.
Harborside Flats was pre-leased months prior by locals and then the balance was filled up immediately before
opening with Roosevelt sailors. They were completely full just days after receiving their temporary certificate of
occupancy.
There is such a shortage of overall housing there is a need for market rate and affordable. Other areas, like Seattle
are solving this problem with a good balance and adopted the MFTE much earlier than Bremerton did and are having
great success with it.
Now is not the time to remove the 8-year MFTE program. It is successful and it is working to balance out enough
housing for our military town needs and affordable options. If we only support the affordable sector we are leaving
our hard working service members to continue to have long commutes from other areas where they can find housing.
Victoria Luke
Marketing Director | Development Associate
Direct: (206) 321-4099
‘Developing Community with Vision & Integrity’
Sound West Group
423 Pacific Avenue, Suite 402
Bremerton, WA 98337
office 360-813-3813 / fax 360-850-1054
www.soundwestgroup.com
CONFIDENTIALITY NOTE: This e-mail contains information belonging to Sound West Group, which may be privileged, confidential and/or protected
from disclosure. The information is intended only for the use of the individual entity named above. If you think that you have received this message in
error, please e-mail the sender. If you are not the intended recipient, any dissemination, distribution or copying is strictly prohibited.
IMPORTANT TAX INFORMATION: To insure compliance with U.S. Treasury Department regulations, we advise you that, unless otherwise expressly
indicated, any federal tax advice contained in this correspondence was not intended or written to be used, and cannot be used, for the purpose of: (i)
avoiding tax-related penalties under the Internal Revenue Code of 1986, as amended, or applicable state or local tax law provisions; or (ii) promoting,
marketing or recommending to another party any tax-related matters addressed herein.
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BMC 3.78 MULTIFAMILY TAX EXEMPTION (MFTE)
PROPOSED AMENDMENTS
WHAT IS A MFTE?
RCW 84.14: Exemption from Ad Valorem (according to value)
property tax; continue to be taxed on value of land, retail
space, and existing improvements.
Current Program: purpose is to create multifamily housing in
Targeted Residential Areas (Downtown and Centers)
8-year MFTE, “market rate”
12-year MFTE, 20% units affordable
Complete
Application
Construct
Units
Annual
Reporting
PROCESS
https://app.leg.wa.gov/rcw/default.aspx?cite=84.14
CURRENT PROGRAM – PER RCW 84.14
Type Status Projects
Units
8 Year Conditional Cert. 8
561
Active 2
323
12 Year Conditional Cert. 2
55
Active 2
127
WHY MAKE CHANGES NOW?
E2SSB 5287 – July 2021
Created a new 20-year property tax exemption for the creation of
permanently affordable homes
Created Extension for existing MFTEs for an additional 12 years if they
meet affordability requirements
Codify current MFTE administrative practices
Transition the purpose of MFTE from stimulating new construction to
focusing on affordable housing
https://lawfilesext.leg.wa.gov/biennium/2021-22/Pdf/Bills/Session%20Laws/Senate/5287-S2.SL.pdf?q=20210709163351
PROPOSED AMENDMENTS
Remove the 8 year MFTE “market rate” incentive
Add 20 year MFTE option (new law)
Add opportunity to extend existing MFTEs additional 12 years (new law)
Codify current MFTE administrative practices – unit mix & displacement
Modify program income eligibility for affordable units (20% of project
low income, 80% of units remain market rate)
REMOVE 8 YEAR MFTE “MARKET RATE” OPTION
Washington State Joint Legislative Audit & Review
Committee (JLARC) 2019 Report
Unclear how often MFTE incentivizes projects that
would not otherwise be built
Inconclusive whether tax liability is shifted
https://leg.wa.gov/jlarc/taxReports/2019/MFTE/f_ii/default.html
CODIFY PRACTICES: TENANT DISPLACEMENT & UNIT MIX
RCW prohibits displacement;requires ‘housing of comparable size, quality, and price
and a reasonable opportunity to relocate.’
Codify:Require first/last month rent, moving expenses, 12 months notice.
RCW requires twenty percent of the multifamily housing units are affordable housing
units and the property must satisfy that commitment and any additional affordability
and income eligibility conditions adopted by the local government
Codify: Units offered as affordable must represent a fair, even distribution of the unit
types offered
INCOME
ELIGIBILITY
COMMON TERMS
Affordable Housing: housing costs, including utilities, that do not exceed thirty percent of the household's monthly
income. RCW 84.14.010(1)
Median Family Income (MFI): the midpoint of a region's income distribution; half of the families in a region earn more
than the median and half earn less than the median (also referred to as Area Median Income or AMI)
MSA means Metropolitan Statistical Area; for Bremerton this means the Bremerton-Silverdale MSA
United States Department of Housing and Urban Development, Income Limits Documentation System (HUD MSA
Tool): A tool used to calculate housing program income limits nationwide using methodology in accordance with
Section 3(b)(2) of the U.S. Housing Act. The tool sets maximum rental charges based on family income levels
Low Income Household: a single person (or family) whose adjusted income is at or below 80% of the median family
income adjusted for the metropolitan statistical area as reported by the United States Department of Housing and
Urban Development. RCW 84.14.010(8) –Per RCW 84.14 Bremerton can alter this qualifying percentage
Moderate Income: a single person (or family) whose adjusted income is more than 80% but is at or below 115% of the
median family income adjusted the metropolitan statistical area as reported by the United States Department of
Housing and Urban Development. RCW 84.14.010(9) - Per RCW 84.14 Bremerton proposing to remove this
option
INCOME DATA SETS
US CENSUSHUD MSA TOOL
•Bremerton specific numbers
•5-year average
•Not adjusted for family size
•Smaller sample size/greater margin of error
•Observation:
Bremerton $52,716 AMI
Kitsap County $75,411AMI
Bremerton incomes 70% Kitsap average
•Countywide numbers
•Updated annually
•Adjustable to family size
•Standard used in RCW 84.14
•Reliable data source for
housing programs nationwide
•Confirmed as defensible by
WA Dept Commerce
https://www.census.gov/quickfacts
HOUSING URBAN DEVELOPMENT “MSA TOOL”
2021 Bremerton-Silverdale MSA
Number of Persons 1 2 3 4
115% AMI (Mod.) $75,808 $86,585 $97,437 $108,215
Rent Maximum $1,895 $2,165 $2,436 $2,705
80% AMI (Low) $52,750 $60,250 $67,800 $75,300
Rent Maximum $1,319 $1,506 $1,695 $1,883
CURRENT
PROGRAM
https://www.huduser.gov/portal/datasets/il/il2021/2021MedCalc.odn
HOUSING URBAN DEVELOPMENT “MSA TOOL”
2021 Bremerton-Silverdale MSA
Number of Persons 1 2 3 4
115% AMI (Mod.) $75,808 $86,585 $97,437 $108,215
Rent Maximum $1,895 $2,165 $2,436 $2,705
80% AMI (Low) $52,750 $60,250 $67,800 $75,300
Rent Maximum $1,319 $1,506 $1,695 $1,883
CURRENT
PROGRAM
HOUSING URBAN DEVELOPMENT “MSA TOOL”
2021 Bremerton-Silverdale MSA
Number of Persons 1 2 3 4
115% AMI (Mod.) $75,808 $86,585 $97,437 $108,215
Rent Maximum $1,895 $2,165 $2,436 $2,705
80% AMI (Low) $52,750 $60,250 $67,800 $75,300
Rent Maximum $1,319 $1,506 $1,695 $1,883
CURRENT
PROGRAM
WHAT IS AFFORDABLE?
RCW 84.14 permits local jurisdictions to
alter affordability requirements
PROPOSED AFFORDABLE RENT LIMITS
2021 Bremerton-Silverdale MSA
Number of Persons 1 2 3 4
115% AMI (Mod.) $75,808 $86,585 $97,437 $108,215
Rent Maximum $1,895 $2,165 $2,436 $2,705
80% AMI (Low) $52,750 $60,250 $67,800 $75,300
Rent Maximum $1,319 $1,506 $1,695 $1,883
60% AMI (Low) $39,540 $45,180 $50,820 $56,460
Rent Maximum $989 $1,130 $1,271 $1,412
PROPOSED
PROGRAM
CURRENT
PROGRAM
PROPOSED AFFORDABLE RENT LIMITS
2021 Bremerton-Silverdale MSA
Number of Persons 1 2 3 4
115% AMI (Mod.) $75,808 $86,585 $97,437 $108,215
Rent Maximum $1,895 $2,165 $2,436 $2,705
80% AMI (Low) $52,750 $60,250 $67,800 $75,300
Rent Maximum $1,319 $1,506 $1,695 $1,883
60% AMI (Low) $39,540 $45,180 $50,820 $56,460
Rent Maximum $989 $1,130 $1,271 $1,412
PROPOSED
PROGRAM
CURRENT
PROGRAM
PROPOSED AFFORDABLE RENT LIMITS
2021 Bremerton-Silverdale MSA
Number of Persons 1 2 3 4
115% AMI (Mod.) $75,808 $86,585 $97,437 $108,215
Rent Maximum $1,895 $2,165 $2,436 $2,705
80% AMI (Low) $52,750 $60,250 $67,800 $75,300
Rent Maximum $1,319 $1,506 $1,695 $1,883
60% AMI (Low) $39,540 $45,180 $50,820 $56,460
Rent Maximum $989 $1,130 $1,271 $1,412
PROPOSED
PROGRAM
CURRENT
PROGRAM
AFFORDABLE HOUSING FOR BREMERTON
Existing Ord. for 12-year eligibility
HUD AMI Adjusted Single Person Household (.8) = $52,750
Proposed Ord. for MFTE eligibility
HUD AMI Adjusted Single Person Household (.6) = $39,540
CONCLUSION: PROPOSED AMENDMENTS
Remove the 8-year MFTE “market rate” incentive
Add 20-year MFTE option
Add opportunity to extend existing MFTEs additional 12 years
Codify tenant displacement & unit mix
Modify program income eligibility for affordable units (20% of
project low income, 80% of units remain market rate)
Bremerton REAC -PURPOSE
(1) to advise City Council, by applying a race equity analysis to all aspects of governance; and
(2) to maintain engagement with and accountability to other work being done throughout the
Bremerton community in service of race equity.
Bremerton REAC -VISION
Bremerton Race Equity Advisory Committee envisions a City that:
•Strives to continually dismantle its own institutional racism, within policies, programs,
budgets, initiatives, legislation, systems, and infrastructure;
•Amplifies and joins racially, culturally, and socially integrated community endeavors
toward equity, well-being, and liberation for all; and
•Aspires to model for the nation a City in which people of different races, ethnicities, and
backgrounds can interact, form friendships, and participate fully in the community’s
political, economic, educational, cultural, and civic endeavors.
•Suquamish Land Acknowledgment and Overview of Event –Quinn Dennehy, Chair, Bremerton REAC
•Why are we here today? –Sarah van Gelder, Member, Bremerton REAC
•Welcome –Bremerton Mayor Greg Wheeler
•Opening Presentation –Jessica Guidry, Equity Program Manager, Kitsap Public Health District
•Our Process of Interviewing Local Leaders on Race Equity –Airen Lydick and Darryl Riley, Members, Bremerton REAC
•Highlights of Interviews: What We Learned So Far –Airen and Darryl
•Getting Interactive: Explanation of Today’s Poll–Glenna Matteson, Member, Bremerton REAC
•Guest Community Speakers: Round #1 –Hear from a circle of ten of the interviewed leaders. (two minutes each)
•Emerging Priorities from Round #1 and Poll Results –Sarah, Quinn, and Glenna
•Responses from Bremerton REAC’s Council Members –Jennifer Chamberlin, Jeff Coughlin, and Quinn Dennehy
•Guest Community Speakers: Round #2 –Hear again from our interviewees.(one minute each)
•Emerging Priorities: What’s surfacing top-of-list? –Sarah and Quinn
•Next Steps in Communicating Top Priorities –Sarah and Quinn
•Thank You and Closing Words –Sarah and Quinn
Getting to Racial Equity Event Flow
•Bremerton REAC reached out to 40 people and
collected in-depth responses from 17 different
local leaders.
•Eleven of those interviewees join us as guest
community speakers today.
Our Process: Talking with Local Leaders on Race Equity
•What are three things you would like to see change within City of
Bremerton government?
•Is there anything about City of Bremerton city governance that is
already anti-racist?
•If City of Bremerton government were going to put some money
toward dismantling racism, where would you want to see that
money go?
•Is there anything we didn't talk about, that you want to mention?
The Questions We Asked Local Leaders on Race Equity
•First, we will share overarching themes from the
interviews. (Example:meaningful representation of
Black, Indigenous, Pacific Islander, and People of Color
in City leadership --staff, electeds, etc.--was something
nearly all interviews mentioned in some way.)
•Then, we’ll get interactive. Glenna will explain how
attendees can interact with overarching themes via
a poll, while our circle of community leader
interviewees have a chance to speak further on
these ideas.
Our Process: Talking with Local Leaders on Race Equity
Highlights of Interviews of Local Leaders on Race Equity
Specifics on what interviewees would like to see:
•Meaningful Representation –Examples: Black, Indigenous, Pacific Islander, People Of Color representation in City
staff, in City departments (fire, police, etc.), on advisory groups, on City Council, and on its committees
•Robust Hiring Processes –Examples: Hiring for all positions be supported through an open search process including
updating the hiring and recruitment policies and strategies.
•Education for City Leaders –Examples: Each City employee receives training from the Government Alliance for
Race and Equity (GARE). Government officials understand their roles in enabling truth & reconciliation.
•Getting Out Into Community –Examples: City Council members embedding themselves in their districts for
regular, on-the-ground experiences with communities of color –i.e., for “small business support,” not just popping into
Chamber of Commerce or KEDA, but also spending time shadowing BIPOC business owners at work.
•Equitable Engagement Methods –Examples: Instead of the usual “outreach,” try Indigenous strategies of working
with communities on when/where/how to meet, talk, and collaborate. All City offices have info in multiple languages
•Policy Change –Examples: Demonstratable use of racial justice and equity lens in policy making.
•Learning Pandemic Lessons –Examples: Address already-existing inequities that the pandemic has further
exposed, in health, education, government, and elsewhere.
•Addressing Policing Issues –Examples:Have diverse People Of Color representation within any work done on
police reform, police hiring processes, and discussions and negotiations with police unions
Highlights of Interviews of Local Leaders on Race Equity
Specifics on what interviewees would like to see:
•Youth Involvement, Not Tokenization –Examples: Incentives for young people to run for office; Increased education
and interaction with youth and local government; much greater transparency and accessibility for the youth to be involved in
local politics; support of hands-on learning with math, sciences, art, and more -better quality education in Bremerton's K-12
schools (NOT more test-oriented)
•Community Access and Welcoming –Examples: Information on website about how City of Bremerton is focusing on
equity and racial justice; safe reporting mechanism for community members’ race equity issues; community voices empowered
to advocate for their needs; forums, town halls, brainstorming sessions, open office hours, and culturally -relevant opportunities
to engage with diverse communities
•Infrastructure to Support Equity –Examples: Providing accountability for racial issues within government; creating
diversity task forces or committees and provide funding for them; hiring a full-time equity officer full-time (not someone who
already has other roles)
•Leadership By Those Impacted –Examples: Truly understand and address root causes of homelessness. Involve those
experiencing homelessness in advocating for their needs and for better solutions. Funds granted by committee should be
granted by diverse committees; Community Development Block Grant funding distribution needs to include Black community.
Any existing Anti-racism with City of Bremerton governance? –Examples: Bremerton REAC is good, but needs
more influence/teeth, to not be only symbolic, etc. Commending the Council members and community who brought REAC about.
“My understanding of racism is based on allowing certain races to have favor above another. It appears that Black people are left
out or ignored on all platforms when it comes to having equal power in government with other races.”
Highlights of Interviews of Local Leaders on Race Equity
If City put money to dismantling racism, where interviewees would want to see it go:
•Support Government Officials “Doing The Work” –Examples:Compensate them for time building authentic
community relationships that serve to dismantle racism.
•Training for Anti-Racism –Examples: Pay for racial equity training for City Council, Mayor, and staff; pay to train police on
connecting with underrepresented communities; pay for community building sessions
•Build a Path Toward Anti-Racism into Infrastructure –Examples:Create a task force to investigate hate crimes,
hate groups, and racist incidences; Hire external search firms that prioritize anti-racism to help with hiring, assessments,
and infrastructure building; Publish demographics of City staff
•Race Equity Advisory Committee –Examples: Invest money in this committee and its efforts; compensate the
people on REAC; compensate groups/organizations that collaborate with REAC.
•Directly to Underserved Communities –Examples:Put money into the hands of communities that have been
historically, systemically inequitably treated, so that outcomes can change.
•Community Organizations and Groups –Examples: Put money into the hands of groups and organizations that
have the trust of community and that are Black, Indigenous, People Of Color led; that are working on social and racial
justice, food justice, housing, health care, education, youth engagement, cultural programming, and other priorities.
•Individuals –Examples:Put money into the hands of community leaders, those with relationships, etc.
Getting to Racial Equity Today’s Interactive Poll
As event attendees, what do you see as emerging priorities?
❑Meaningful Representation
❑Robust Hiring Processes
❑Education & Skills Building for
City Leaders
❑Policy Assessment & Change
❑Addressing Policing Issues
❑Accessible, Equitable City
Infrastructure
❑External Consulting & Support
❑Equitable Community
Engagement Methods
❑Funding Underserved,
Underrepresented
Communities
❑Leadership by Those Impacted
❑Empowered/Impactful Race
Equity Advisory Committee
❑Other: __________________
Getting to Racial Equity Guest Community Speakers
Jessica Guidry (she/her)
Equity Program Manager, Kitsap Public Health District
Cristina Roark (she/her)
Innovation Network Manager, Kitsap Strong
Steering Committee Member, Professional Leaders of Color
Co-leadership Member, Welcome Home Program
Marwan Cameron
Founder, Gather Together Grow Together
Owner, CMS Construction
Host, The Conduit Podcast Show
Akuyea Karen Vargas
Director, Living Arts Cultural Heritage
Director, Living Life Leadership
Convener, Kitsap ERACE Coalition
Harriette Bryant
Founder/Mentor, OurGEMS (Our Girls Empowered through Mentoring and Service)
Pastor Richmond Johnson
Pastor, Mt. Zion Missionary Baptist Church
Director, Partnering for Youth Achievement
Bailey Tupai (he/him)
Gang Prevention Intervention Mentor, Community Outreach Specialist, and
At -risk Youth and Homeless Advocate, God's Broken Home University
Recovery Coach Navigator, Agape Unlimited Treatment Center
Jewel Shepherd-Sampson (she/her)
Community Activist & Organizer, Kitsap ERACE Coalition
Mentor & Organizer, Kitsap Black Student Union
Owner, House of Glam
Roderick Capistrano Camarce
Owner & Operator, Ridgetop Urban Farms
Angela Flemming
Development Manager, Suquamish Research & Strategic Development
Department, Suquamish Foundation
Steering Committee Member, Kitsap Racial Equity & Empowerment Fund
Professional Leaders of Color
President, Kitsap Cancer Services
Pastor Frankie Coleman
Pastor, Sinclair Missionary Baptist Church
Bremerton African American Ministerial Alliance
Cristina
Marwan
Akuyea
Harriette
Richmond
Bailey
Jewel
Roderick
Angela
Frankie
Getting to Racial Equity
Guest Community Speakers
Round #1 –two minutes each
Getting to Racial Equity Today’s Interactive Poll -RESULTS
Frankie
Angela
Roderick
Jewel
Bailey
RichmondHarriette
Akuyea
Marwan
Cristina
Jessica
Getting to Racial Equity
Guest Community Speakers
Round #2 –one minute each
Getting to Racial Equity Notes
TOP RESULTS FROM POLL
•Empowered and impactful Bremerton Race Equity Advisory Committee. (83%)
•Funding underrepresented and underserved communities (53%)
•Equitable community engagement methods and strategies (53%)
•Meaningful representation –Black, Indigenous, Pacific Islander, People of Color in City (elected, staff, etc.), with
meaningful inclusion, safety, and empowerment, once there (53%)
•Policies –assessing them, analyzing them, and changing them to reflect anti-racist focus (45%)
ADDITIONAL THINGS HIGHLIGHTED FROM GUEST SPEAKERS
•Need genuine relationship building
•Need partnering with groups already leading on race equity and cultural programming (example: Handle With Care program).
•The City needs outside support/consulting in order to shift systems, scrutinize policy, and implement change.
•Training alone is not enough. Visionary change is needed in order for the culture/systems of governance to change.
•Shift burden of “proof” that race equity work is needed off BIPOC communities and onto The City. Do the data analysis.
•Go beyond the minimums.
•Don’t just talk about it, Be about it.
•A few examples of where City needs to focus that race equity lens (because if anti-racism/race equity isn’t central to the
analysis, then these things aren’t authentically happening): understanding and addressing homelessness; deepening
youth engagement & leadership; having trauma-informed care in our institutions; and building & sustaining systems &
methodologies for funding.