HomeMy WebLinkAbout02/15/2022 - Work Study - PacketPlease turn off cell phones during meeting and hold your questions for staff until the meeting has been adjourned
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City of Port Orchard Council Work Study Session
February 15, 2022
6:30 p.m.
The City is conducting its public meetings remotely to prevent the spread of
COVID. The City is providing options for the public to attend through telephone,
internet or other means of remote access, and also provides the ability for
persons attending the meeting (not in-person) to hear each other at the same
time. Therefore;
Remote access only
Webinar Link: https://us02web.zoom.us/j/89343418695
Webinar ID: 893 4341 8695
Zoom Call-In: 1 253 215 8782
Guiding Principles
•Are we raising the bar?
•Are we honoring the past, but not living in the past?
•Are we building connections with outside partners?
•Is the decision-making process positively impacting diversity, equity, and
inclusion?
CALL TO ORDER
Pledge of Allegiance
DISCUSSION ITEMS:
1.Proposed 2022 Comprehensive Plan Amendment Docket (Bond) Page
2
Estimated Time: 20 minutes
2.KRCC CPP Population Growth Targets (Bond) Page 11
Estimated Time: 25 minutes
3.McCormick Water CFC Credit Agreement (Bond) Page 17
Estimated Time: 20 minutes
4.2021-2022 Budget Amendment (Crocker) Page 95
Estimated Time: 15 minutes
5.Hiring Incentives Discussion (Lund) Page 104
Estimated Time: 30 minutes
6.Retreat Topics (Mayor)
Estimated Time: 15 minutes
Good of the Order
Mayor:
Rob Putaansuu
Administrative Official
Councilmembers:
Mark Trenary
E/D & Tourism Committee
Utilities/Sewer Advisory Committee
Transportation Committee
KRCC-alt
Shawn Cucciardi
Finance Committee
E/D & Tourism Committee
Lodging Tax, Chair
Fred Chang
Economic Development & Tourism Committee
Land Use Committee
Transportation Committee
Jay Rosapepe
Finance Committee,
Land Use Committee
KRCC, PSRC-alt, PSRC Transpol-alt, KRCC Transpol-alt,
KRCC Planpol-alt,
John Clauson
Finance Committee, Chair
Utilities/Sewer Advisory Committee
Kitsap Public Health District-alt
Cindy Lucarelli (Mayor Pro-Tempore)
Festival of Chimes & Lights Committee, Chair
Utilities/Sewer Advisory Committee,
Kitsap Economic Development Alliance
Scott Diener
Land Use Committee
Transportation Committee
Department Directors:
Nicholas Bond, AICP
Development Director
Mark Dorsey, P.E.
Director of Public Works/City Engineer
Tim Drury
Municipal Court Judge
Noah Crocker, M.B.A.
Finance Director
Matt Brown
Police Chief
Brandy Wallace, MMC, CPRO
City Clerk
Meeting Location:
Council Chambers, 3rd Floor
216 Prospect Street
Port Orchard, WA 98366
Contact us:
(360) 876-4407
cityhall@cityofportorchard.us
City of Port Orchard
Work Study Session Executive Summary
Issue Title: Proposed 2022 Comprehensive Plan Amendment Docket
Meeting Date: February 15, 2022
Time Required: 20 minutes
Attendees: Nicholas Bond
Issue: Pursuant to Port Orchard Municipal Code Section (POMC) 20.04.050, the City’s Community
Development Director has initiated the process for the 2022 annual amendments to the Port Orchard
Comprehensive Plan. The City received and prepared applications for three amendments prior to the
January 31, 2022 deadline.
In compliance with POMC 20.04.060(3), the Director is required to compile and maintain for public
review a recommended final comprehensive plan amendment agenda (docket). The Director has based
the docket recommendations on a preliminary evaluation of the need, urgency, and appropriateness of
the suggested comprehensive plan amendments, as well as the staff and budget availability to
accommodate the public review process.
The following preliminary docket is provided for the 2022 update to the Port Orchard Comprehensive
Plan:
• Capital Facilities Element. Adopt the 2020 Amendment to the Water System Plan.
• Parks Element. Update the Parks Element and adopt the Parks, Recreation and Open Space Plan
by reference.
• Transportation Improvement Program (TIP). Updates to the 6-year and 20-year TIP which
generally includes prioritizing projects, adjusting budgets and the inclusion of a TIB-funded
complete street grant project into the 6-year TIP.
Alternatives: Advise staff to include additional or remove proposed Comprehensive Plan amendments.
Recommendations: Staff recommends that the City Council proceed with the proposed 2022
Comprehensive Plan amendment docket as described. Pursuant to POMC 20.04.060, the Director shall
compile and maintain the recommended docket for public review by February 28, 2022.
Attachments: The 2022 Comprehensive Plan Docket
Action Requested at this Meeting: Tentative concurrence on proposed Comprehensive Plan
Amendment docket.
Page 2 of 110
2022 Comprehensive Plan Update – Preliminary Docket
Pursuant to Port Orchard Municipal Code Section (POMC) 20.04.050, the City’s Community
Development Director has initiated the process for the 2022 annual amendments to the Port Orchard
Comprehensive Plan. The City prepared applications for three text amendments prior to the January 31,
2022 deadline.
In compliance with POMC 20.04.060(3), the Director is required to compile and maintain for public
review a recommended final comprehensive plan amendment agenda (docket). The Director has based
the docket recommendations on a preliminary evaluation of the need, urgency, and appropriateness of
the suggested comprehensive plan amendments, as well as the staff and budget availability to
accommodate the public review process.
The following preliminary docket is provided for the 2022 update to the Port Orchard Comprehensive
Plan:
Comprehensive Plan Amendments for Consideration in 2022:
City-Initiated Text Amendment Package
• Capital Facilities Element. Adopt the 2020 Amendment to the Water System Plan.
• Parks Element. Update the Parks Element and adopt the Parks, Recreation and Open Space Plan
by reference.
• Transportation Improvement Program (TIP). Updates to the 6-year and 20-year TIP which
generally includes prioritizing projects, adjusting budgets and the inclusion of a TIB-funded
complete street grant project into the 6-year TIP
Review Process:
The final comprehensive plan amendment agenda shall be determined by the City Council no later than
April 30, 2022. When the final agenda is approved, a public notice and comment period will be provided
in compliance with the Type V (legislative) permit process requirements in POMC 20.22.070 and
20.25.040. A public hearing will also be held per POMC 20.22.070(2), and a notice of the hearing will be
issued in compliance with POMC 20.25.050. The Planning Commission shall make its recommendations
regarding the proposed comprehensive plan amendments to the City Council no later than June 30,
2022. The City Council shall make a final decision on each proposed amendment by December 15, 2022.
A summary of each amendment application, including maps for the site-specific amendments, are
available for review on the City’s website at: TO BE DETERMINED*****
Comments regarding the 2022 update to the City’s Comprehensive Plan should be mailed to the City of
Port Orchard, Community Development Department, 720 Prospect Street, Port Orchard, WA 98366,
planning@cityofportorchard.us. For more information, email or call 360 874-5533.
Page 3 of 110
DRAFT City of Port Orchard Six-Year Transportation Improvement Program
For 2022-2027 TIER 1 (Reasonably Constrained)
Priority
Numb Begin Termini
End Termini
Total
Project Total Est.
2021
Future
2022 2023 2024 2025 2026 2027
Phase Funding
Phase
Federal
Fund
State
Fund
1.1
500,000 250,000 250,000 250,000 0 0 0 0 0 2018 P ROW 0 581,000
1.2
1.2 650,000 650,000 0 0 0 0 0 0 0 0 2018 S CN
3,000,000 0 0 3,000,000 0 1,500,000 1500000 0 0 0 2021 S CN
1.3
1.5 566,474 0 0 566,474 0 566,474 0 0 0 0 2022 P PL 490,000 0 76,474
1.4
0 258,000 200,000 0 58,000 58,000 0 0 0 0 2016 S PE 0 258,000
1,680,000 0 0 1,680,000 840,000 840,000 0 0 0 2021 P CN TIB 1,213,000 525,000
1.5
0.75 450,000 0 225,000 225,000 225,000 0 0 0 0 0 2021 P PE 0 450,000
2,000,000 2000000 2025 P CN
RCO
1.7
0 4,000,000 0 800,000 2021 S PE 800,000
0 3,200,000 3200000 0 2022 S/P CN HSP 1,500,000 TIB UAP 1,100,000 700,000
1.8
0 2,746,000 0 0 570,000 250,000 170,000 150,000 2022 S PE 0 344,374 74,626
268,000 268,000 2023 S ROW 220,238 47,732
1,908,000 1908000 2025 P CN
UAP/CS
1,568,178 307,051
1.9
2,928,300 2,928,300 2026 P CN
CS
2,489,055 439,245
1.10
0.25 1,000,000 0 0 1,000,000 0 0 0 1000000 0 0 2024 P PE & ROW 0 0 1,000,000
1,000,000 0 0 1,000,000 0 0 0 0 1000000 0 2025 P CN 0 TIB 0 1,000,000
1.11
0.95 500,000 0 0 500,000 0 0 0 0 500,000 2027 P PL 0 0 500,000
TIB
1.12
300,000 0 0 300,000 0 300,000 2023 P Study
roadway segment design from Blueberry to
Salmonberry. 30% DN in 2022.
Walmart Drive
Intersectionpreviously included in the Bethel Road Corridor ROW
& Construction project.
Berry Lake Rd.
Old Clifton Rd Design - 60%
Campus PKWY to
Anderson Hill Rd.Urban Village Trans Plan. Design to 60% level.
Includes RAB design at McC Woods Dr. intersection.
Bethel/Sedgwick Phase 5a - Bethel/Lincoln RAB
blueberry
Intersection
erg/ Mitchell
Bethel/ Sedgwick Corridor Phase 1b - Salmonberry RAB
Salmonberry
intersection
Sidney Road SW Design - 60%
be widened to three lanes (additional TWTL) including
bike lanes, sidewalks, traffic calming, and stormwater
system improvements. (COMPLETE STREET).
Capital Projects
Bay Street Ped. Pathway ROW Phase
Ave. Foot Ferry to
Annapolis Foot Ferrywaterfront pathway & cantilevered retaining wall
following historic Mosquito Fleet trail and pedestrian
bridge across Black Jack Creek.
Bay Street Pedestrian Pathway Construction (S#1, S#6-11)
waterfront pathway/cantilevered retailing wall
following the historic Mosquito Fleet trail. Includes
the demolition/removal of (5) overwater structures.
Bay Street Pedestrian Pathway West and Bay St: Ft Ferry
to Tremont
Old Clifton/ Anderson Hill Intersection Improvements
Anderson Hill Rd.
Intersectionin the McCormick Urban Village Trans Plan and
partially funded by Bayside Mit Funds.
Vallair Ct Connector
reconfiguration of approaches.
Bethel/ Sedgwick Cooridor Phase 1a - Blueberry RAB
Sedgwick Road West Study - 30% Design
mitigation alternatives and identify right-of-way needs
for roadway and identify potential sites to
accommodate stormwater run off and mitigation for
filling wetlands. Include stormwater element for
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DRAFT City of Port Orchard Six-Year Transportation Improvement Program
For 2022-2027 TIER 1 (Reasonably Constrained)
Priority
Numb Begin Termini
End Termini
Total
Project Total Est.
2021
Future
2022 2023 2024 2025 2026 2027
Phase Funding
Phase
Federal
Fund
State
Fund
1.13
0.95 35,000 0 35,000 0 2021 P PE
778,000 778,000 778,000 2022 P CN CDBP 100,000 678,000
1.14
0.95 35,000 0 0 35,000 35,000 2022 P PE
778,000 155,000 0 155,000 2024 P CN 250,000
1.15
0.95 35,000 0 35,000 0 35,000 2024 P PE
750,000 750,000 0 750,000 2025 P CN SRTS 648,750 101,250
1.16
Total Capital Projects 23927224 1,990,000 1815000 22,122,224 4565000 4,202,474 3668450 5058000 4128300 500000 3,913,590 8,392,086 7,316,471
Maintenance Projects Total 2,021 Future Exp 2022 2023 2024 2025 2026 2027
1.51
Includes patching, crack-sealing , striping, and other
activities
509,500 0 53,000 456,500 56,500 100,000 100,000 100,000 100,000 0 2020 S CN 456,500
1.52 *
as identified in the program
796,000 0 38,000 758,000 38,000 180,000 180,000 180,000 180,000 0 2020 S CN 758,000
1.53 **
pavement management system program
2,335,000 0 300,000 2,035,000 535,000 0 500,000 500,000 500,000 0 2020 S CN 2,035,000
1.55
Tremont from SR-16 to the eastern city limits
bridge
0.5 500,000 0 0 500,000 0 500,000 0 0 0 0 2021 P PE,CN 500,000
4,140,500 0 391,000 3,749,500 629,500 780,000 780,000 780,000 780,000 0 0 0 3,749,500
*Per 2016 ADA transition plan: $180,000 annually over 20 years to comply on arterial streets.
**Per 2016 Pavement Management Analysis Report: $1.45 million annually to maintain network condition (PCI of 70), $500k to keep network PCI above 65 after 5 years.
SR160 from Geiger
to Frederick
current standard in accomdance with redevelopment
plans
Pottery
Pottery Avenue Non Motorized Improvements
Total Maintenance Projects
Annual Pavement Maintenance
Annual Sidewalk & ADA Upgrade Program
Annual Pavement Management System Paving Projects
Tremont Overlay
enhancement at Pottery Lippert Intersection. Safe
Routes to Schools Grant application.
Lippert Sidewalk Retrofit and Pavement Repair
pavement repairs, stormwater retrofit. In house des
with consulted survey & basemap
Pottery Avenue Sidewalk Improvements
and basemap by others.
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City of Port Orchard Transportation Improvement Program (TIP)
For 2026-2039 TIER 2 (Unconstrained)
Priority Begin Termini Project Start Funding
Phase
Federal
2.01 1 3,750,000 3,750,000 0 2028 P PE/RW STP(U)0 0 3,750,000
and construction for this project with bike lanes,
storm drainage and sidewalks. (COMPLETE
STREET)
2.02A 0.4 462,428 462,428 0 2028 P PE STP(U)400,000 0 62,428
acquisition phase for this widening project with 3
lanes (continuous TWTL), bike lanes, sidewalks
and box culvert across Blackjack Creek.)
2.02B 0.4 3,468,208 3,468,208 0 2030 P CN STP(U)3,000,000 0 468,208
with 3 lanes (continuous TWTL), bike lanes,
sidewalks and box culvert across Blackjack Creek.)
2.04A.1
0.75
2.04A.2
sidewalks and stormwater system improvements.
0.5 2,500,000 0 2,500,000 2028 P ALL 0 0 0
2.04B 1,110,000 1,110,000 0 2030 P PE 0 0 1,110,000
0.7
2.04C 422,000 422,000 0 2032 P PE 0 0 422,000
0.25
Bethel/Sedgwick Corridor Phase 2 - Design,
ROW and Construction interchange to Bethel
second phase of the street improvements per the
Bethel/Sedgwick Corridor Plan (2018).
Project Title/Project Description
Capital Projects
Sidney Avenue (North of SR 16)
Fireweed
Sedgwick Road West - Design, Permitting & ROW
Sidney Avenue
Sedgwick Road West - Construction Sidney Avenue
Bethel/Sedgwick Corridor Phase 1 - ROW Bethel Road:
Salmonberry to
Blueberry.
phase of the street improvements per the
Bethel/Sedgwick Corridor Plan (2018). Includes
improvements to Ramsey Road for detour per
2.04A.2 below.
Ramsey Road Widening
Salmonberry Road
Bethel/Sedgwick Corridor Phase 3 - Design,
ROW and Construction to Sedgwick
third phase of the street improvements per the
Bethel/Sedgwick Corridor Plan (2018).
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City of Port Orchard Transportation Improvement Program (TIP)
For 2026-2039 TIER 2 (Unconstrained)
Priority Begin Termini Project Start Funding
Phase
Federal
Project Title/Project Description
2.04D 616,000 0 616,000 2034 P PE 0 0 616,000
0.5
2.04E 720,000 0 720,000 2036 P PE 0 0 720,000
1.1
2.05
5,761,850 5,761,850 0 2029 P CN STP(U)3,600,000 TIB 1,600,000 561,850
2.06
sidewalks and stormwater system improvements.
0.22 1,600,000 1,600,000 0 2029 P ALL 0 0 1,600,000
2.07
street lighting, watermain extension and grade-
seperated Pedestrian Path as identified in the
McCormick Urban Village Trans Plan.
1.35 2,700,000 2,700,000 0 2028 P CN 0 0 2,000,000
2.08
0
750,000 0 750,000 2033 P CN 0 0 750,000
2.09
lane road. The reconstruction would widen the
road to allow two safe travel lanes, bike lanes,
sidewalks and a stormwater system.
Pottery Avenue to
Sherman Avenue
0.4 600,000 0 600,000 2032 P ALL 0 0 750,000
2.10
Bethel/Sedgwick Corridor Phase 4 - Design,
ROW and Construction Salmonberry
fourth phase of the street improvements per the
Bethel/Sedgwick Corridor Plan (2018).
Bethel/Sedgwick Corridor Phase 5 - Design,
ROW and Construction Drive to Lund
fifth phase of the street improvements per the
Bethel/Sedgwick Corridor Plan (2018).
Sidney Road SW Widening
SR 16 Overpass to
Sedgwick Roadneeds to be widened to three lanes (additional
TWTL) including bike lanes, sidewalks, traffic
calming, and stormwater system improvements.
(COMPLETE STREET).
Pottery Avenue Widening
Tremont Place to
Melcher Street
Old Clifton Rd Shoulder & Pedestrian Improvements
Anderson Hill to
Westerly City Limits
O. Clifton Rd & McC. Woods Dr. Intersection
McCormick Woods Dr.
Intersection(roundabout) improvements including street
lighting, as identified in the McCormick Urban
Village Trans Plan.
Melcher Street Widening
Fireweed Road Widening
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City of Port Orchard Transportation Improvement Program (TIP)
For 2026-2039 TIER 2 (Unconstrained)
Priority Begin Termini Project Start Funding
Phase
Federal
Project Title/Project Description
reconstruction would widen the road to allow for
safe travel lanes, bike lanes, sidewalks and a
stormwater system.
Sidney Avenue to
South Flower Avenue
2.11
allow two safe travel lanes, bike lanes, sidewalks
and a stormwater system.
0.35 525,000 0 525,000 2032 P ALL 0 0 750,000
2.12
1.1 809,250 0 809,250 2033 P PE STP(U)700,000 0 109,250
520,231 0 520,231 2035 P RW STP(U)450,000 0 70,231
7,225,434 0 7,225,434 2037 P CN STP(U)6,250,000 0 975,434
2.13
0.95 500,000 500,000 0 2030 P PE STP(U)432,500 67,500
750,000 750,000 0 2031 P RW STP(U)648,750 101,250
2,950,000 2,950,000 0 2033 P CN STP(U)2,292,250 0 657,750
2.14 0 0 0 0 0 0 0
2.15
sidewalks and stormwater system improvements.
0.4 600,000 0 600,000 2036 P ALL 0 0 0
2.16
sidewalks and stormwater system improvements.
0.25 375,000 0 375,000 2034 P ALL 0 0 0
2.17
sidewalks and stormwater system improvements.
0.15 225,000 0 225,000 2028 P ALL 0 0 0
2.18
Geiger and a new street connection to the
proposed round about on Sedgwick.
0.25 575,000 0 575,000 2034 P ALL 0 0 0
2.19
Sherman Avenue Widening Fireweed Road to
Terminus at SR 16
Tremont St Widening - Port Orchard Blvd (Ph. 2)
Tremont Street to
Bay Street (SR166)Blvd. and Bay Street (SR166)/PO Blvd. and curb,
gutter, bike lanes, sidewalks, street lighting, storm
drainage and Schedule 74 Undergrounding.
Pottery Avenue Widening Tremont to SR16
Tremont Street
SR 16 Overpasswidened to a four-lane road, with sidewalks,
traffic calming and upgrades to the stormwater
system.
Old Clifton Berry Lake Road Intersection
Blueberry Road Widening Road
Geiger Road Widening Blueberry Road
Salmonberry Road Widening
Road
Piperberry Way Extention Road
Old Clifton & Feilgly Intersection
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City of Port Orchard Transportation Improvement Program (TIP)
For 2026-2039 TIER 2 (Unconstrained)
Priority Begin Termini Project Start Funding
Phase
Federal
Project Title/Project Description
McCormicks Urban Village Transportation Plan.
Continuation of 1.5A
2.20
2.21
2.22
complete streets with bikelanes and streetscape
for pedestrians and storefronts. Study to address
traffic cirulcation and raising streets for seal level
rise and assocated stormwater and other utility
0 1,000,000 0 1,000,000 2033 P ALL 0 0 0
2.23
to Study.
0 10,000,000 0 10,000,000 2040 P ALL 0 0 0
2.24
capacity. Bay Street Pathway crossing. Assumed
creek is not impacted by project/ no major
mitigation.
0 3,000,000 0 3,000,000 2040 P ALL 0 0 0
2.25
capacity. Cline to end at Kitsap. Relocate flag
pole. Signalized Intersection?
0 2,000,000 0 2,000,000 2040 P ALL 0 0 0
2.26
capacity.
0 2,500,000 0 2,500,000 2040 P ALL 0 0 0
Bay Street Pathway - West Tremont to Footferry
Salmonberry
Bay Street at Port
Orchard Bulivard
Downtown Bay Street Study
Mile Hill Dr intersection
with Bay Street.
Bay Street Improvements
Mile Hill Dr intersection
with Bay Street.
Bay St. & Kitsap Street Intersection Improvement
Street
Bay St. & Mitchell and Wetzil
Avenue and Guy Wetzil
Rd.
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City of Port Orchard Transportation Improvement Program (TIP)
For 2026-2039 TIER 2 (Unconstrained)
Priority Begin Termini Project Start Funding
Phase
Federal
Project Title/Project Description
2.27
Developer Imrpovements?
0 1,500,000 0 1,500,000 2040 P ALL 0 0 0
2.28
replacement? Developer Project?
0 1,000,000 0 1,000,000 2040 P ALL 0 0 0
2.28
Provide sidewalk and streetscape impr.
0 1,500,000 0 1,500,000 2040 P ALL 0 0 0
2.29
Street" concept. Developer Improvement?
0 2,500,000 0 2,500,000 2040 P ALL 0 0 0
98,166,043 63,557,128 34,608,915 60,451,500 1,600,000 31,857,543
2.51
0.13 200,000 0 0 P ALL 200,000
200,000 0 0 0 0 200,000Total Tier 2 Maintenance Projects
Total Tier 2 Capital Projects
Maintenance Project
Cline Avenue Repairs
Kitsap Street to
Dwight Street
Sidney Avenue Improvements
Waterfront
Fredrickson Ave Impr.
Harrison Avenue Improvements
Waterfront
New Waterfront Street
Avenue
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City of Port Orchard
Work Study Session Executive Summary
Issue Title: KRCC CPP Population Growth Targets
Meeting Date: February 15, 2022
Time Required: 25 minutes
Attendees: Nick Bond, AICP
Issue: Port Orchard is part of the Puget Sound Regional Council (PSRC) and Kitsap Regional
Coordinating Council (KRCC). PSRC’s regional growth strategy Vision 2050 was recently adopted to chart
a course for the region through 2050. The strategy calls for growth to be focused in certain areas and
for transportation planning to be coordinated. In Vision 2050, Port Orchard is categorized as a High-
Capacity Transit Community (HTCs) along with Kingston, Poulsbo, Bainbridge Island, and our urban
growth areas (UGA). According to Vision 2050, population growth is supposed to be planned to be
consistent with Table 1.
Table 1: The Regional Growth Strategy.
Action Requested at this Meeting: Discuss KRCC CPP Population Targets and provide direction
concerning Port Orchard’s preferred target and how to handle the requests from other jurisdictions.
Page 11 of 110
Executive Summary 2
Page 2 of 4
In this table, Kitsap County is supposed to grow by 97,000 people between 2017 and 2050 with 34,000
of these 97,000 locating within HTCs. When adjusted for the 2020-2044 period corresponding to our
planning period for the upcoming periodic update, the amount of growth targeted to occur in Kitsap
County HTCs is reduced to 24,268 people. On February 8, 2022, technical staff from Kitsap County, Port
Orchard, Poulsbo, and Bainbridge Island met to discuss how this growth allocation should be divided up
among the HTCs.
According to the current schedule established by KRCC, the Countywide Planning Policies will be
updated in June 2022 with new growth targets for the 2020-2044 planning period. These targets are
needed before significant work on the 2024 comprehensive plan can commence.
During the February 8, 2022 meeting, cities provided a high and low estimate for their preferred share
of the 24,268 people in order to assist KRCC’s Land Use Technical Advisory Committee in finalizing its
recommendation to the KRCC board. It was apparent, that even under the “low” scenario, that these
communities desired more of a growth allocation than was available. Table 2 below illustrates the low
and high requests submitted relative to the amount of growth available. It should be noted that
Bainbridge Island was unable to commit to setting a range but indicated that they would look at recent
growth trends in attempting to set their targets.
Under the regional framework, Bremerton is a Metropolitan City, Silverdale a Core City, Central Kitsap
UGA is Unincorporated UGA, and rural areas of Kitsap County are Rural. These places are not discussed
in this memo.
Table 2: High and Low Allocation Requests for High-Capacity Transit Communities
At the low end of the HTC growth target range, the HTCs proposed growth targets exceed the PSRC
allocations by 1,387 people. At the high end of the range, the HTC growth targets exceed the PRSC
allocations by 9,880 persons. There are several reasons why cities are seeking more growth than is
supported by Vision 2050:
1. Urban Growth Area Reductions. Kitsap County believes that UGA reductions could be on the
table in Port Orchard if there is not enough growth allocated to the UGA. Vision, 2050 explicitly
states that “stable urban growth boundaries” are a goal of the plan, but this may not matter in a
GMA appeal if Kitsap County were to see their comprehensive plan appealed.
2. Poulsbo. Poulsbo is seeking UGA expansion and is asking for more growth than it currently has
capacity to accommodate. Poulsbo believes that a high-end allocation of 8,000 people between
the City and the Poulsbo UGA will allow the County to expand the Poulsbo UGA.
High-Capacity Transit Communities 2020-2044
Requested
Allocation
Requested
Allocation Land
Surplus/
Deficit
Surplus
Deficit
Page 12 of 110
Executive Summary 2
Page 3 of 4
3. Bainbridge Island (BI). BI has not clearly shared its preferences with KRCC and there are several
new city council members at BI who are new to this process. BI staff indicated that they will be
reviewing current growth rates and proposing a growth target that reflects current growth
rates. Table 2 above assumes between .5% and 1% growth in Bainbridge Island. In the past, Port
Orchard and the other Kitsap jurisdictions have expressed concern that BI is not growing enough
to reflect the WSDOT ferry resources available it its residents.
4. Kingston. Kingston is seeking slightly more growth than it can currently accommodate. As a
countywide center with a fast ferry, Kitsap County has asked for more growth in Kingston to
make better use of the available ferries.
5. Port Orchard. Port Orchard needs to make sure that its allocation is realistic based on expected
growth and annual growth rates to ensure plan certification and PSRC transportation funding
eligibility. In 2016, the City was allocated 8,235 residents and it appears that we will exceed this
target much earlier than the 2036 horizon year. Our next allocation needs to reflect current
trends, existing entitlements, and our 3% annual population growth rate over the past eight
years.
Alternatives:
In the February 8, 2022 meeting among technical staff, Port Orchard proposed a population allocation of
between 10,000 and 14,000 people for the 2020-2044 period for inclusion in the Countywide Planning
Policies. This was based in part on previous guidance from City of Port Orchard elected officials and the
Land Use Committee. Previous guidance suggested an initial allocation of 10,000 for the period
between 2024 and 2044 (the next comp plan planning period). After those previous discussions, City
staff learned that the targets that would be adopted into the countywide planning policies would be for
the years 2020-2044 and not for 2024-2044. That meant that the 2020-2024 growth would need to be
factored in this number and thus the proposed population target for Port Orchard was increased from
10,000 to 14,000 on the high end of the range.
One of the important considerations in target setting is that Port Orchard needs to ensure that it is
growing in accordance with the regional growth strategy. In 2016, several cities in the PSRC region had
already exceeded their growth allocations prior to finishing their 2016 periodic updates. As a result,
those cities chose to plan for growth based on actual on-the-ground conditions and planned for more
growth than they had been allocated. As a result, some of these cities did not receive comprehensive
plan certification or received conditional plan certification. Plan certification from PSRC is required to
remain eligible for PSRC transportation funding.
Port Orchard could find itself in this situation in 2024. Based on current permitting activity, the City is
expecting to add housing for an additional 5,000 to 8,000 residents in the next three years and as many
as 10,000 additional residents in next six years. If Port Orchard sets the 2020-2044 growth targets too
low, the city could exceed its 20-year growth target before it adopts its 2024 comprehensive plan (due
by June 30, 2024).
In negotiating Port Orchard’s target with the other KRCC jurisdictions, the City’s representatives need to
consider the following alternatives.
1. Linear 3% Growth. In 2013, the Office of Financial Management (OFM) estimated Port
Orchard’s population to be 12,870. In the 2020 Census, the City had grown to 15,587 people.
Over this seven-year period, this total growth amounts to 3% annually. If the city were to set a
target based on 3% annual growth, starting with a 2021 OFM population estimate of 15,960, its
2044 population would end up at 31,478 people. This is an increase of 15,891 persons from
2020-2044.
Page 13 of 110
Executive Summary 2
Page 4 of 4
2. Flat Growth (388 new residents per year). If the City were to project population growth based
on the average annual population growth occurring between 2013 and 2020, this would amount
to 388 additional residents per year. Projecting the addition of 388 residents per year the 2021
OFM estimate of 15,960 would result in a 2044 population of 24,874 people. This would
amount to an increase of 9,287 persons between 2020 and 2044.
3. Hybrid Flat. The City has considerable information about permitted activity expected in 2022-
2024. Beyond the next three years, it is likely that an economic slowdown will occur altering
growth rates at least temporarily. The hybrid flat approach uses known development activity
for years 2022-2024 followed by the addition of a more modest 388 residents per year from
2025-2044. Population growth in 2022 is projected to be 1,632, in 2023 is expected to be 1,786,
and in 2024 is expected to be 1,568. Under this approach, the 2044 population for the city
would be 28,696. This would amount to an increase of 13,109.
The City’s KRCC representatives must consider setting Port Orchard’s growth target to be included in the
Countywide Planning Policies while balancing concerns for UGA sizing, the preferences of neighboring
jurisdictions, current pipeline development, and the requirement to get PSRC plan certification. Port
Orchard’s leaders should weigh these competing priorities and advance a growth target that makes
sense for Port Orchard. At the same time, Port Orchard must be prepared to support or oppose the
requests from Kitsap County, Poulsbo, and Bainbridge Island.
Recommendations: Discuss the alternatives and provide guidance to Staff and the Mayor and
Councilmember Rosapepe as the City’s KRCC Representatives.
Attachments: Vision 2050 Pages 30, 33
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Page 15 of 110
VISION 2050 • Regional Growth Strategy – 33
High Capacity Transit Communities include
cities connected to existing or planned light
rail, commuter rail, ferry, streetcar, and bus
rapid transit facilities. High Capacity Transit
Communities also includes urban unincorporated
areas planned for annexation or incorporation
and with existing or planned access to high-
capacity transit. As the region’s transit system
grows, these 34 communities play an increasingly
Figure 10 – High Capacity Transit Communities
High Capacity Transit Communities (34 total, 274 square miles): Arlington, Bainbridge Island, Bothell Municipal
Urban Growth Area (MUGA), Des Moines, DuPont, Edmonds, Edmonds MUGA, Everett MUGA, Federal Way
Potential Annexation Area (PAA), Fife, Fircrest, Kenmore, Kingston, Lake Forest Park, Larch Way Overlap, Lynnwood
MUGA, Marysville, Mercer Island, Mill Creek, Mill Creek MUGA, Mountlake Terrace, Mukilteo, Mukilteo MUGA,
Newcastle, North Highline (Seattle PAA), Renton PAA, Parkland-Spanaway-Midland PAA, Pierce Mid-County (part),
Port Orchard & Port Orchard UGA, Poulsbo & Poulsbo UGA, Shoreline, South Hill Planned Incorporation Area (PIA),
Sumner, and Woodinville
High Capacity Transit Communities in Kitsap and Snohomish counties are expected to accommodate a much larger
share of their county growth than High Capacity Transit Communities in King and Pierce counties.
City of Sumner
important role as hubs to accommodate regional
employment and population growth. Targeting
growth within these transit-rich communities
helps to support mobility and reduces the number
and length of vehicle trips.
The Regional Growth Strategy calls for the 34 High
Capacity Transit Communities to accommodate
24% of the region’s population growth and 13% of
its employment growth by the year 2050.
High Capacity Transit Communities
Sumner Station
Page 16 of 110
City of Port Orchard
Work Study Session Executive Summary
Issue Title: McCormick Water CFC Credit Agreement
Meeting Date: February 15, 2022
Time Required: 20 Minutes
Attendees: Nick Bond, AICP
Issue: McCormick Communities approached the City with a proposed agreement as authorized by Port
Orchard Municipal Code (POMC) 13.04.030 to build water system improvements for the City in
exchange for credit against the Water Capital Facility Charge (CFC). In the proposed agreement,
McCormick Communities would construct the following five improvements within five years, all of which
are included in the recent update to the City’s Water CFC fee calculation:
1. CIP No. 9: Well 12 Development, Treatment, and Booster Pump Station ($7,000,000)
2. CIP No. 13: 390 to 580 Zone Booster Station, 2nd Lift (Glenwood) ($725,000)
3. CIP No. 14: 390 to 580 Zone Transmission Main (to Glenwood PS) ($515,624)
4. CIP No. 15: 580 to 660 Zone Booster Station; ($750,000)
5. CIP No. 16: 660 Zone Storage ($2,850,000)
The credit amount is anticipated to be $5,920 per ERU added to the City’s system in the area shown on
the map attached to the agreement. The maximum value of the credit is $11,840,625 which can only be
reached with proper documentation of certified project costs showing an expenditure of at least that
amount. If the certified project costs are less, the maximum credit will be lowered. If the certified
construction costs are higher than $11,840,625, the maximum credit will not be increased.
The agreement is structured similarly to other recent CFC credit agreements but does provide an
additional section related to satisfying the 1998 purchase and sale agreement of the McCormick Water
System. (See section 12)
McCormick has requested that this agreement be approved at the same time as two other agreements
extending the terms of the 2013 Development Agreement for McCormick Woods and the 2011
Development Agreement for McCormick West. The CFC agreement is to be considered valuable
consideration in exchange for extending the term of these other two agreements.
Action Requested at this Meeting: Review and Discuss the Draft McCormick Water CFC Credit
Agreement.
Page 17 of 110
Executive Summary 3
Page 2 of 2
Background: The previously approved entitlements for McCormick Woods and McCormick West were
dependent on several water system improvements to provide water supply, storage, and transmission.
These projects are listed in the City’s water system plan and presently are City projects to be funded by
the City’s collection of CFCs. If the City were to design and build these projects, they would take far
more time to construct and would likely not be available at the time sought by McCormick Communities.
In 2019, the City briefly imposed a moratorium on development which was solved in the short term
through an agreement with the City of Bremerton. In the long term, the projects to be constructed
under this agreement combined with the City’s participation in the Foster Pilot Program should allow for
the complete buildout of McCormick Woods and McCormick West.
Alternatives: Do not approve the agreement in which case the city would need to design and construct
these five projects in accordance with its water system plan.
Recommendations: City Council should review and discuss the draft agreement. It is likely that the
agreement will come forward for adoption and approval in April 2022.
Attachments: Draft CFC Agreement (including Appendix A), 2013 DA for McCormick Woods, 2011 DA
for McCormick West.
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CREDIT AGREEMENT FOR CAPITAL FACILITY CHARGES
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CREDIT AGREEMENT FOR CAPITAL FACILITY CHARGES
This CREDIT AGREEMENT FOR CAPITAL FACILITY CHARGES (“Credit
Agreement”) is entered into between the City of Port Orchard, a Washington municipal
corporation (“City” or “Port Orchard”) and McCormick Communities, LLC, a Washington limited
liability company (“McCormick”). City and McCormick are each a “Party” and together the
“Parties” to this Credit Agreement.
RECITALS
A. The City owns and operates a municipal water system that services the areas known as
McCormick Woods and McCormick West, which together comprise hundreds of acres of
land owned by McCormick as depicted in Exhibit A (the “McCormick Property”).
B. Many acres of the McCormick Property have received preliminary plat approval, and other
acres have received final plat approval, and McCormick has sold some of the resulting lots
to builders.
C. One area of the McCormick Property is served by the City of Bremerton water system, but
the majority of the McCormick Property is served by the McCormick Woods water system
which is owned and operated by the City of Port Orchard, and is within the area previously
served by the McCormick Water Company, Inc. On September 1, 1998 the City purchased
the assets of the McCormick Water Company, Inc. and undertook by contract the obligation
to serve the McCormick Property (“1998 PSA”).
D. On December 30, 2015 McCormick Communities, LLC purchased the assets of
McCormick Land Company and GEM1, LLC and assumed their obligations with certain
exceptions. These purchases included assignments of rights and interest to all entitlements,
including water and water rights as well as all claims. Therefore, McCormick is the only
remaining party (apart from the City) with an interest in the 1998 PSA.
E. Due to a variety of reasons, including the Foster v. Department of Ecology decision
regarding water rights, the City has been unable to provide water to the McCormick
Property as agreed-to in the 1998 PSA on the schedule desired by McCormick. If the City
could not timely provide these water services, then under the 1998 PSA McCormick has
the right to select a different purveyor to provide water service for future development.
Instead, McCormick desires to construct the additional public facilities needed to serve its
future development and the City agrees to provide credits for water connection fees as
reimbursement as authorized in POMC 13.04.030.
F. On July 10, 2007, Port Orchard and the prior owner of the McCormick Property, GEM 1,
LLC (“GEM”) entered into a REIMBURSEMENT AGREEMENT FOR UTILITY
SYSTEM IMPROVEMENTS (“2007 Agreement”), in which the City and GEM agreed
that the City was “unable to fund” the Water Facilities described and depicted in Exhibit
A to this 2007 Agreement, which were needed to serve the McCormick Property, and the
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City and GEM agreed that if GEM constructed these Water Facilities, GEM would receive
reimbursement as described in this 2007 Agreement.
G. GEM chose not to construct these Water Facilities, but the 2007 Agreement remains in
effect and McCormick as owner and developer of the McCormick Property is GEM’s
successor-in-interest to the 2007 Agreement.
H. On February 9, 2021 the City Council approved the FIRST AMENDMENT TO 2007
REIMBURSEMENT AGREEMENT FOR UTILITY SYSTEM IMPROVEMENTS
(“First Amendment”) in which the City and McCormick agreed to amend the list of projects
in the 2007 Agreement, and McCormick agreed to (1) improve the City’s Well 12 water
campus; (2) construct a new 580 zone reservoir up to 1.1 million gallons in size; (3)
construct a second transmission main between the new 580 zone reservoir and the then-
existing water system within McCormick Woods, in order to facilitate future separation of
the Port Orchard and Bremerton water systems; and to (4) drill and make operational a
pilot well at the proposed location of a new Well 12.
I. Pursuant to the First Amendment, the Parties also agreed to negotiate in good faith to enter
into subsequent agreements to (1) determine appropriate reimbursement for McCormick’s
Well 12 project; (2) address construction of a future 660 Zone reservoir and booster pump
station; (3) address construction of traffic improvements; (4) extend existing entitlements;
and (5) address full waiver of McCormick’s claims against the City and the parties’
agreement on satisfaction of performance under the 1998 PSA.
J. Pursuant to this First Amendment, McCormick is constructing these improvements to the
City’s water system at a cost of approximately $4 million, for which McCormick is
receiving $1,000 reimbursement per equivalent residential unit (“ERU”) that connects to
the City’s water system within the Western Service Area depicted in the 2007 Agreement.
McCormick expects to receive, over time, approximately $2.4 million in reimbursement
for up to 2,400 lots within the Western Service Area, resulting in a shortfall in
reimbursement of at least $1.6 million in addition to the shortfall from the time value of
McCormick’s $2.8 million investment.
K. At least five additional improvements to the City’s water system are needed to enable the
City to serve the McCormick Property. The City has included these five additional
improvements in the current Capital Improvement Plan that the City Council adopted by
Ordinance No. 022-21 on May 11, 2021. These improvements, hereinafter described as
the “Five CIP Projects” are listed below, together with the estimated cost of the
improvement to be funded by capital facility charges (“CFCs”):
a. CIP No. 9: Well 12 Development, Treatment, and Booster Pump Station
($7,000,000)
b. CIP No. 13: 390 to 580 Zone Booster Station, 2nd Lift (Glenwood) ($725,000)
c. CIP No. 14: 390 to 580 Zone Transmission Main (to Glenwood PS) ($515,624)
d. CIP No. 15: 580 to 660 Zone Booster Station; ($750,000)
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e. CIP No. 16: 660 Zone Storage ($2,850,000)
L. The current CIP estimates the total CFC-funded cost of these Five CIP Projects to be
$11,840,625.
M. The Five CIP Projects must be constructed in order for the City to supply water to the
McCormick Property as agreed-to in the 1998 PSA between the City and the McCormick
Water Company.
N. In addition, approval of water rights for Well 12 and the City’s Well 11 projects are needed
in order to provide adequate water supplies for McCormick’s development and the City at
large. The City is working diligently as part of the Foster pilot program to secure these
water rights. However, whether these water rights are ultimately secured and on what
schedule will be determined by the Department of Ecology.
O. These Five CIP Projects will enable the City to serve not only the McCormick Property,
but also existing and future development outside the McCormick Property. The 660 Zone
Storage (CIP No. 16), together with the 580 Zone Storage that McCormick is constructing
pursuant to the First Amendment, will increase the City’s total water storage capacity by
50% in all pressure zones. The 660 Zone Storage will be located at one of the highest
elevations in the City, which will enable this storage, together with the transmission
facilities being constructed by McCormick, to serve the entire City in the event of shortfalls
in water supply or storage in other areas of the City.
P. Both the 580 and the 660 zone water Storage being constructed by McCormick are sized
to serve areas outside of the McCormick Property, and to serve all future growth in the 580
pressure zone. Without these improvements, only a limited number of new homes could
be constructed in the McCormick Property or in any of the other properties in the 580-
pressure zone unless Port Orchard and Bremerton enter into an updated agreement for Port
Orchard to buy additional water supplies for an extended period.
Q. The drilling and activation of Well 12 will provide added supply to the City’s current 580
pressure zone so that Port Orchard will no longer need to purchase water from the City of
Bremerton. This will enable Port Orchard, together with its activation of Well 11, to
separate its water system from Bremerton’s, so that Port Orchard can manage its water
quality policy (e.g., provide fluoridation) independently.
R. In anticipation of execution of this Credit Agreement, McCormick has commenced work
on the Five CIP Projects and at the time of execution of this Credit Agreement has
expended approximately $400,000 towards design and construction and has provided
certified project costs to establish these expenditures to the City prior to the effective date
of this Agreement.
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S. In order for the City to fulfill its obligations to provide water to the McCormick Property
under the 1998 PSA, and in order for McCormick to continue to develop its property, the
City and McCormick agree as follows:
AGREEMENT
1. Reaffirmation of Prior Agreements. The City and McCormick affirm that the First
Amendment to 2007 Reimbursement Agreement for Utility System Improvements remains
in effect, as do the un-amended sections of the 2007 Reimbursement Agreement.
2. McCormick Performance of Five CIP Projects. McCormick will finance and construct
the Five CIP Projects described in Recital K, as described in the Summary of Improvements
attached to this Credit Agreement. The Parties recognize and agree that McCormick’s
scope of work and this Summary of Improvements may change as these Projects are
engineered, and such changes will be discussed with the City, and, if approved, will be
reflected in future CIPs.
Water CFC Credit. As partial compensation, McCormick will receive credit against water
CFCs for each ERU developed within the McCormick Property. This credit shall be a
specific dollar amount which will reflect the CFC-funded costs of the Five CIP Projects,
divided by the number of ERUs that McCormick is expected to develop within the
McCormick Property (2,000). At the time of this Agreement, the current CIP estimates the
total CFC-funded cost of these Five CIP Projects to be $11,840,625, so the Water CFC
Credit shall be $5,920:
Maximum Eligible Project (Five CIP Project Total Costs)
Eligible ERU’s (McCormick Property)
Water Capital Facility Charge Credit per ERU
This credit per ERU of $5,920 shall be adjusted each year in accordance with the CPI-U
referenced in POMC 13.04.065, and also if the City amends its water capital facilities
charge and adjusts the cost estimates for any of the 5 CIP Projects described in recital K
above as part of that future capital facilities charge amendment.
Estimated Maximum Water CFC Credit. The maximum amount for the Water CFC
Credit shall be the lesser of $11,840,625, as adjusted per this Section 2, or the certified
project cost established in Section 11, whichever is lower (hereinafter “Maximum Water
CFC Credit”). In no case shall the Maximum Water CFC Credits granted by the City
exceed $11,840,625 as adjusted per this section.
Water CFC Credits per ERU will be applied up to the Maximum Water Credit Value for
20 years or until the Maximum Water Credit Value is fully exhausted, whichever occurs
first. The final credit applicant may receive partial credit depending on the Maximum
Water Credit Value remaining.
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The Maximum Water CFC Credit hereunder is an estimate only based on the CIP project
cost estimates. The Parties will determine the final Maximum Water CFC Credit in
accordance with the certification procedures set forth in Section 11. If the certified costs
are less than $11,840,625, then the fixed credit will still be applied but only to the extent
as to capture the Maximum Water CFC Credit, i.e., the ERU water credits provided will
never exceed the certified project costs. This means that some of the 2,000 estimated ERUs
may receive partial or no Water CFC Credit so that the total credits do not exceed either
the certified project costs or Maximum CFC Credit, whichever is less.
3. Value of Projects. McCormick and the City anticipate that McCormick will construct the
Five CIP Projects within the next five years (although drilling of Well 12 may take longer
because the City needs to first secure water rights under the Foster program), but
McCormick will receive the anticipated credit per ERU over the next 20 years. When the
$11,840,625 invested by McCormick in the Five CIP Projects is adjusted for the time value
of money over 20 years, the additional financing cost to McCormick is between $1,933,991
and $2,544,900, depending on the rate at which new ERUs are developed. While this
financing cost is not reimbursable under this CFC Credit Agreement, it presents significant
public benefit to the City and constitutes consideration both for the City entering into this
Agreement, and for new or amended Development Agreements to extend the existing
preliminary plat approvals within the McCormick Property, so that sufficient ERUs remain
available to provide the credits needed to defray a meaningful percentage of the costs of
financing and building the Five CIP Projects.
4. Other Agreements. The City and McCormick are contemporaneously, together with the
execution of this Credit Agreement, also executing amendments to the following
agreements to extend the periods of preliminary plat approval of two of the subdivisions
within the McCormick Property that create the lots whose development will create the
ERUs for which the City will charge CFCs:
a. Annexation Agreement No. 085-11, McCormick West, recording number
201112190136; and
b. Development Agreement for McCormick Woods Phases III, IV, and V Preliminary
Plats, recording number 201309160217;
5. Project Performance Standards. McCormick will finance, design, and construct the Five
CIP Projects to comply with City and other applicable standards, including obtaining all
necessary permits. This includes, as applicable, review and approval by the Washington
State Department of Health, Office of Drinking Water. The City will approve the plans
before construction begins.
6. Effective date; term; concurrency. This Credit Agreement is effective immediately upon
its execution and shall continue for a term of 20 years. The Water CFC Credits shall be
applied to connections within the McCormick Property and such credits shall continue to
be available up to the cumulative amount certified in the initial or annual report(s) plus the
value of any posted bond, provided that McCormick continues to make timely progress on
the Five CIP Projects, including providing the City with the annual reports as set forth in
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Section 7 below. The development of 2,000 ERUs within the McCormick Property is
expected to be concurrent with the City’s water system so long as the Five CIP Projects are
developed as set forth in this Agreement, including the City’s obtaining additional adequate
water supply along with the related water rights under Foster from Well 11, Well 12 and/or
Well 13 to serve these ERUs. Assuming these conditions are met, the City will reserve
water capacity for these 2,000 ERUs. Execution of this Agreement is equivalent to
issuance of a capacity reservation certificate (CRC) under POMC Chapter 20.180. The
capacity reservation shall expire with the expiration of this Agreement.
7. Annual Reporting; Bonding. McCormick shall by December of each year provide a
report, signed, and stamped by a licensed engineer and accompanied by supporting
documentation, to the City demonstrating the approximate ongoing total of its investment
in the Five CIP Projects, together with the approximate total of credits per ERU received
within the McCormick Property. In addition, at any time of the year, McCormick may
submit project-specific reports, signed, and stamped by a licensed engineer and
accompanied by supporting documentation, to the City at the conclusion of each of the
Five CIP Projects in order to commence the completion process outlined in Section 9. As
each of the Five Projects is commenced, McCormick’s shall post a bond for completion of
that project in order to secure its completion and transfer to the City. This shall be required
in order to have Water CFC Credits apply in accordance with this Agreement. For purposes
of this section, “commenced” means commencement of construction. However, the costs
of such bond(s) may be included in the Maximum Water CFC Credit calculation, provided
however, that the Maximum Water CFC Credit in no case may exceed $11,840,625. Bonds
may be released for each of the Five Projects in accordance with the requirements for
project completion contained in POMC 13.04.030. At no time shall the total CFC credits
being issued exceed the then balance of the certified project costs plus the value of any
bond that is then in place.
8. McCormick Shall Grant Property Rights to the City. All intellectual data, including but
not limited to engineering work, surveys, plan sets, and designs initiated by McCormick
and its engineers and/or consultants for the Five CIP Projects shall be provided to the City
upon request and McCormick will provide the City with ownership rights in the intellectual
data so that if McCormick fails to complete any of the Projects, the City will have all of
the rights necessary to utilize the intellectual data in order to complete the work. In
addition, McCormick agrees that for any real property where any portion of any of the Five
CIP Projects is located that is not in currently the City’s ownership at the time this
Agreement is executed, that McCormick will provide property rights to the City, in the
form of an easement or dedication, that will provide the City all of the rights necessary to
enter and utilize that property in perpetuity for the purposes of owning, operating,
maintaining, improving, expanding, or constructing water facilities. These property rights
shall be provided to the City no later than the time period described in Section 11 below,
however, if McCormick fails to complete the Project(s) in accordance with this Agreement,
McCormick will be required to promptly transfer the property rights to the City upon its
default or abandonment of work on the Project(s).
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9. Completion of Five CIP Projects. With the exception of the Well 12 Project which may
be delayed due to water rights issues, McCormick agrees that it will complete the Five CIP
Projects within five (5) years of the execution date of this Agreement. The City shall
diligently pursue water rights for Well 12, and McCormick shall complete Well 12 within
this five-year performance period, or within twenty-four (24) months of the granting of the
required water rights, whichever period is longer. Upon completion of each of the Five CIP
Projects as outlined hereunder, the City may accept responsibility for the operation in
accordance with POMC 13.04.030 provided construction is completed, the Project has
been accepted, any transfer of property documents are completed, accepted, and recorded,
and a two-year warranty and maintenance bond is in place, such acceptance not to be
unreasonably conditioned, withheld or denied. In accordance with POMC 13.04.030(6),
the Project will be deemed completed when all of the following occurs: 1. The City deems
it substantially complete; 2. All punch list items are finished; 3. The improvement passes
final inspection; 4. McCormick has put a two-year warranty and maintenance bond in
place; 5. The City releases the performance bond (if applicable); 6. McCormick has
completed all property dedications; 7. McCormick has provided the City with a Bill of Sale
for the improvements containing the certified construction costs (stamped by licensed
engineer) to the City for determination of the maximum credits available under this
Agreement; and 8. The City Council accepts the project as public. The City will confirm
completeness of the CIP Project by issuing a Final Notice of Completeness to McCormick.
10. Force Majeure. Notwithstanding anything to the contrary in this Agreement, any
prevention, delay or stoppage due to strikes, lockouts, labor disputes, acts of God, acts of
war, terrorist acts, inability to obtain services, labor, or materials or reasonable substitutes
therefor, governmental actions, governmental laws, regulations or restrictions, civil
commotions, Casualty, actual or threatened public health emergency (including, without
limitation, epidemic, pandemic, famine, disease, plague, quarantine, and other significant
public health risk), governmental edicts, actions, declarations or quarantines by a
governmental entity or health organization (including, without limitation, any shelter-in-
place orders, stay at home orders or any restrictions on travel related thereto, breaches in
cybersecurity, and other causes beyond the reasonable control of the party obligated to
perform, regardless of whether such other causes are (i) foreseeable or unforeseeable or (ii)
related to the specifically enumerated events in this paragraph (collectively, a "Force
Majeure"), shall excuse the performance of such party for a period equal to any such
prevention, delay or stoppage. To the extent this Agreement specifies a time period for
performance of an obligation of either party, that time period shall be extended by the
period of any delay in such party's performance caused by a Force Majeure. Provided
however, that the current COVID-19 pandemic shall not be considered a Force Majeure
unless constraints on a Party’s performance that result from the pandemic become
substantially more onerous after the effective date of this Agreement.
11. Certification of Project Costs. Upon completion of each of the Five CIP Projects as
described in Section 11 above, McCormick shall submit certified project costs to the City
for review and acceptance by the City Engineer. Once these costs and the executed Bill of
Sale are reviewed and accepted by the City Engineer, not to be unreasonably withheld,
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conditioned, or delayed, the Maximum Water CFC Credit due to McCormick will be
established and will equal the Maximum Water CFC Credit as so certified in accordance
with this Section 11. If the Maximum Water CFC Credit due is less than the certified
project costs of the Five CIP Projects, then the City will continue to apply the $5,920 credit
(as adjusted by CPI-U) until the Maximum Water CFC Credit is reached, or this Agreement
expires, whichever occurs first. McCormick acknowledges that this may result in some of
the 2,000 ERUs receiving no (or a partial) CFC credit as the full reimbursement is reached.
12. Satisfaction of 1998 PSA. The Parties recognize and agree that this Agreement
substantially satisfies the City’s obligations under the September 1, 1998 Agreement for
Purchase and Sale of Assets of McCormick Water Company, Inc. The Parties further agree
that at such time as the work described in Recital “K” is completed in accordance with the
Agreement, whether Well 12 is completed or not, that the City’s obligation under the 1998
will be fully satisfied, provided that the City continues to provide the CFC credits
consistent with this Agreement. Furthermore, having assumed the position of MLC/GEM1
under the 1998 PSA, McCormick has the sole right to determine that the City’s obligations
have been satisfied. When the work in Recital K, excluding Well 12, is complete,
McCormick agrees that it will have no remaining claim(s) against the City for failure to
perform under the 1998 PSA. To the extent any such claim(s) remain, McCormick
intentionally and irrevocably waives its rights to pursue such claim(s).
13. Default. Subject to extensions of time by mutual consent in writing, failure, or delay by
either Party to perform any term or provision of this Agreement shall constitute a default.
In the event of alleged default or breach of any terms or conditions of this Agreement, the
Party alleging such default or breach shall give the other Party not less than thirty (30)
days’ notice in writing, specifying the nature of the alleged default and the manner in which
said default may be cured. During this thirty (30) day period, the Party charged shall not
be considered in default for purposes of termination or institution of legal proceedings.
After notice and expiration of the thirty (30) day period, if such default has not been cured
or is not being diligently cured in the manner set forth in the notice, the other Party to this
Agreement may, at its option, institute legal proceedings pursuant to this Agreement.
14. Reimbursement for Agreement Expenses of the City. McCormick agrees to reimburse
the City for actual expenses incurred over and above fees paid by McCormick as an
applicant incurred by City directly relating to this Agreement, including recording fees,
publishing fees, attorneys’ fees, and reasonable staff and consultant costs not otherwise
included within application fees. Such payment shall be made in full prior the Mayor
executing the Agreement on behalf of the City. Upon payment of all expenses, the
Developer may request written acknowledgement of all fees. Such payment of all fees shall
be paid, at the latest, within thirty (30) days from the City’s presentation of a written
statement of charges to McCormick.
15. Non-Waiver of Breach. The failure of a Party to insist upon strict performance of any of
the covenants and agreements contained herein, or to exercise any option herein conferred
Page 26 of 110
CREDIT AGREEMENT FOR CAPITAL FACILITY CHARGES
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in one or more instances shall not be construed to be a waiver or relinquishment of said
covenants, agreements, or options, and the same shall be and remain in full force and effect.
16. Conflict. In the event of any conflict between this Agreement and POMC 13.04.030, this
Agreement shall control.
17. Resolution of Disputes and Governing Law. If any dispute arises between the City and
McCormick under any of the provisions of this Credit Agreement, jurisdiction of any
resulting litigation shall be filed in Kitsap County Superior Court, Kitsap County,
Washington. This Agreement shall be governed by and construed in accordance with the
laws of the State of Washington. The non-prevailing party in any action brought to enforce
this Agreement shall pay the other parties' expenses and reasonable attorney's fees.
18. Written Notice. All written communications regarding enforcement or alleged breach of
this Credit Agreement shall be sent to the parties at the addresses listed below, unless
notified to the contrary. Unless otherwise specified, any written notice hereunder shall
become effective upon the date of both emailing and mailing by registered or certified mail,
and shall be deemed sufficiently given if sent to the addressee at the address stated below:
McCORMICK: CITY:
Eric Campbell
12332 NE 115th Place
Kirkland, WA 98033
eric@mspgroupllc.com
Nick Tosti
805 Kirkland Avenue, Suite 200
Kirkland, WA 98033
Rob Putaansuu, Mayor
City of Port Orchard
216 Prospect Street
Port Orchard WA 98366
rputaansuu@cityofportorchard.us
A copy shall also be transmitted to the City
Clerk at the above address.
19. Assignment. Before completion of the Five CIP Projects, any assignment of this Credit
Agreement by McCormick without the written consent of the City, which shall not
unreasonably be withheld, shall be void. McCormick may assign this Credit Agreement
after completion of the Five CIP Projects by giving written notice of assignment to the
City.
20. Modification. No waiver, alteration, or modification of any of the provisions of this Credit
Agreement shall be binding unless in writing and signed by a duly authorized
representative of the City and McCormick.
21. Severability. The provisions of this Credit Agreement are declared to be severable. If any
provision of this Credit Agreement is for any reasons held to be invalid or unconstitutional
by a court of competent jurisdiction, such invalidity or unconstitutionality shall not affect
the validity or constitutionality of any other provision.
Page 27 of 110
CREDIT AGREEMENT FOR CAPITAL FACILITY CHARGES
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22. Good Faith and Due Diligence. The Parties agree to perform all obligations under this
Credit Agreement in good faith and with due diligence.
IN WITNESS WHEREOF, the parties have executed this Agreement on this day of
, 2021.
MCCORMICK COMMUNITIES, LLC CITY OF PORT ORCHARD
By: By:
Its: Its: Mayor
APPROVED AS TO FORM: APPROVED AS TO FORM:
Patrick Schneider Jennifer S. Robertson
Attorney for McCormick Communities Attorney for Port Orchard
ATTEST:
Brandy Rinearson
Port Orchard City Clerk
Page 28 of 110
CREDIT AGREEMENT FOR CAPITAL FACILITY CHARGES
Page 11
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1454988.17 - 366922 -0029
STATE OF WASHINGTON )
) ss.
COUNTY OF KITSAP )
I certify that I know or have satisfactory evidence that Mr. Rob Putaansuu is the person
who appeared before me, and said person acknowledged that he signed this instrument, on oath
stated that he was authorized to execute the instrument and acknowledged it as the Mayor of Port
Orchard to be the free and voluntary act of such party for the uses and purposes mentioned in the
instrument.
Dated: 20
(print or type name)
NOTARY PUBLIC in and for the
State of Washington, residing at:
My Commission expires:
Page 29 of 110
CREDIT AGREEMENT FOR CAPITAL FACILITY CHARGES
Page 12
FG:54353236.12
1454988.17 - 366922 -0029
STATE OF WASHINGTON )
) ss.
COUNTY OF )
I certify that I know or have satisfactory evidence that Mr. is the person
who appeared before me, and said person acknowledged that (he/she) signed this instrument, on
oath stated that (he/she) was authorized to execute the instrument and acknowledged it as the
of McCormick Communities, LLC to be the free and voluntary act of such party for the
uses and purposes mentioned in the instrument.
Dated: 20
(print or type name)
NOTARY PUBLIC in and for the
State of Washington, residing at:
My Commission expires:
Page 30 of 110
EXHIBIT A
McCormick Properties
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City of Port Orchard
Work Study Session Executive Summary
Issue Title: 2021-2022 Budget Amendment
Meeting Date: February 15, 2022
Time Required: 15 minutes
Attendees: Council and directors
Action Requested At This Meeting: Provide comments on the proposed budget Amendment
Issue: The City Budget is written to capture revenue and expenses over the fiscal period.
During the biennial period, changes to the budget in both revenue and expenditures need to
be recognized by Budget Amendment.
Background: See attached Materials
Alternatives: N/A
Recommendation: The Finance Director recommends adoption of Ordinance No. 00X-22,
amending Exhibit A of the 2021–2022 Biennial Budget.
Relationship to Comprehensive Plan: N/A
Attachments:
Staff Report
Ordinance
Follow-up Notes & Outcomes:
Page 95 of 110
City of Port Orchard
216 Prospect Street, Port Orchard, WA 98366
(360) 876-4407 • FAX (360) 895-9029
Agenda Staff Report
Agenda Item No.: Business Item Meeting Date: February 22, 2021
Subject: Ordinance No. 0XX- 22, Prepared by: Noah D. Crocker
Amending the 2021-2022 Finance Director
Biennial Budget and Exhibit Atty Routing No:
A Salary Table Atty Review Date:
Summary: The City Budget is written to capture revenue and expenses over the fiscal
period. During the biennial period, changes to the budget in both revenue and
expenditures need to be recognized by Budget Amendment. Exhibit A of the 2021-2022
Biennial Budget identifies the Personnel positions of the City as well as pay ranges.
By this Ordinance No. 0XX-22, the City Council would amend the 2021 – 2022 Biennial
Budget, as adopted by Ordinance No. 035-20 and amended by Ordinance No.015-21,
Ordinance No. 032-21, Ordinance No. 050-21, Ordinance No. 056-21, Ordinance No. 065-
21.
The proposed budget amendment is intended to provide the following:
1) Fund 001: Current Expense Fund
a. Increase transfers out to Fund 002 City Street in the amount of $239,000 for
Crack & Seal, Lund Bridge, and Pavement Preservation
b. Increase transfers out to Fund 433 Sewer Capital in the amount of $1,410,539
representing the full payment of ARPA for 2021 being allocated to Marina
Pump Station
c. Eliminate transfers out to Fund 413 Water Capital in the amount of $900,000
representing a portion of ARPA for 2021 no longer allocated to Well #13 and
MW Interie projects
d. Reduce 2022 Ending Fund balance by $749,539 reflecting the impact of the
transfers
2) Fund 002: City Street Fund
a. Increase transfers in from Fund 001 in the amount of $239,000 for Crack
&Seal, Lund Bridge, and Pavement Preservation
b. Eliminate transfers in from Fund 304 in the amount of $239,000 for Crack
&Seal, Lund Bridge, and Pavement Preservation
c. No impact to fund balance
3) Fund 103: Criminal Justice Fund
a. Increase expenditure authority to purchase police helmets in the amount of
$60,000
b. Reduce 2022 ending fund balance by $60,000
Page 96 of 110
Page 2 of 4
4) Fund 109: Real Estate Excise Tax Fund
a. Increase transfer out to Fund 304 for the Bay Street Pedestrian Pathway project
in the amount of $500,000 for the project including fully funding the ROW
services contract previously authorized
b. Reduction of 2022 ending fund balance by $500,000 reflecting impact of the
transfer
5) Fund 304: Street Capital Projects
a. Increase transfers in from fund 109 for the Bay Street Pedestrian Pathway
project in the amount of $500,000
b. Increase expenditure authority for the Bay Street Pedestrian Pathway project in
the amount of approximately $500,000
c. Eliminate transfers out to Fund 002 in the amount of $239,000 for Crack
&Seal, Lund Bridge, and Pavement Preservation
d. Increase of 2022 ending fund balance by $239,000 reflecting impact of the
transfers
6) Fund 413: Water Capital Fund
a. Eliminate transfers in from Fund 001 Current Expense in the amount of
$600,000 representing a portion of ARPA for 2021 no longer allocated to MW
Interie at Old Clifton project
b. Eliminate transfers in from Fund 001 Current Expense in the amount of
$300,000 representing a portion of ARPA for 2021 no longer allocated to Well
#13
c. Eliminate expenditure authority in the amount of $600,000 for longer
allocated MW Interie at Old Clifton project
d. Eliminate expenditure authority in the amount of $300,000 for longer
allocated to Well #13
e. No impact to fund balance
7) Fund 423: Storm Drainage Capital Fund
a. Increase expenditure authority in the amount of $5,200 for the appraisal
services rendered under C073-21.
b. Reduce 2022 ending fund balance by $5,200
8) Fund 433: Sewer Capital
a. Increase transfers in from Fund 001 Current Expense in the amount of
$1,410,539 representing the full payment of ARPA for 2021 being allocated to
Marina Pump Station
b. Increase ending fund balance in the amount of $1,410,539
9) Exhibit A
a. Add 2 FTE to the Patrol Officers position. The additional FTE count will
provide the police department the ability to recruit and hire in a more flexible
and timely manner as officers retire and leave the city. It will provide some
overlap in personnel to support coverage and ensure adequate officers are
employed with the City.
Recommendation: The Finance Director recommends adoption of Ordinance No.
00X-22, amending the 2021–2022 Biennial Budget including Exhibit A.
Page 97 of 110
Page 3 of 4
Relationship to Comprehensive Plan:
Motion for consideration: I move to adopt Ordinance No. 0XX-22, amending the
2021-2022 Biennial Budget including Exhibit A as adopted by Ordinance No. 035-20 and
amended by Ordinance No.015-21, Ordinance No. 032-21, Ordinance No. 050-21,
Ordinance No. 056-21, Ordinance No. 065-21, the 2021 – 2022 Biennial Budgets for the
City of Port Orchard.
Fiscal Impact: A future financial budget amendment may be needed prior to the
end of the biennium.
Alternatives: Do not authorize and provide alternative guidance
Attachments: Ordinance No. 0XX-22, Exhibit A
Fund: 001 - Current Expense
2021-2022 Current
(Amended Biennial
Budget No. 056.21)
2021-2022
Budget
Amendment
2021-2022 Amended
Biennial Budget No.
XXX-2022
Beginning Fund Balance 6,952,862$ -$ 6,952,862$
Revenue 28,576,339$ -$ 28,576,339$
Expense 32,358,835$ 749,539$ 33,108,374$
Ending Fund Balance 3,170,366$ (749,539)$ 2,420,827$
Fund: 002 - City Street Fund
2021-2022 Current
(Amended Biennial
Budget No. 056.21)
2021-2022
Budget
Amendment
2021-2022 Amended
Biennial Budget No.
XXX-2022
Beginning Fund Balance 1,479,291$ -$ 1,479,291$
Revenue 6,121,880$ -$ 6,121,880$
Expense 7,155,472$ -$ 7,155,472$
Ending Fund Balance 445,699$ -$ 445,699$
Fund: 103 - Criminal Justice
2021-2022 Current
(Amended Biennial
Budget No. 056.21)
2021-2022
Budget
Amendment
2021-2022 Amended
Biennial Budget No.
XXX-2022
Beginning Fund Balance 377,608$ -$ 377,608$
Revenue 491,900$ -$ 491,900$
Expense 584,325$ 60,000$ 644,325$
Ending Fund Balance 285,183$ (60,000)$ 225,183$
Governmental Funds
(Operating, Stabilization, Special, Debt Service)
Page 98 of 110
Page 4 of 4
Fund: 109 - Real Estate Excise Tax
2021-2022 Current
(Amended Biennial
Budget No. 050.21)
2021-2022
Budget
Amendment
2021-2022 Amended
Biennial Budget No.
XXX-2022
Beginning Fund Balance 3,266,592$ -$ 3,266,592$
Revenue 2,927,400$ -$ 2,927,400$
Expense 1,927,200$ 500,000$ 2,427,200$
Ending Fund Balance 4,266,792$ (500,000)$ 3,766,792$
Fund: 304 - Street Capital Projects
2021-2022 Current
(Amended Biennial
Budget No. 056.21)
2021-2022
Budget
Amendment
2021-2022 Amended
Biennial Budget No.
XXX-2022
Beginning Fund Balance 1,732,515$ -$ 1,732,515$
Revenue 5,546,333$ 500,000$ 6,046,333$
Expense 6,539,400$ 261,000$ 6,800,400$
Ending Fund Balance 739,448$ 239,000$ 978,448$
Governmental
Capital Construction
Fund: 413 - Water Capital
2021-2022 Current
(Amended Biennial
Budget No. 056.21)
2021-2022
Budget
Amendment
2021-2022 Amended
Biennial Budget No.
XXX-2022
Beginning Fund Balance 1,382,354$ 1,382,354$
Revenue 6,037,400$ (900,000)$ 5,137,400$
Expense 5,117,400$ (900,000)$ 4,217,400$
Ending Fund Balance 2,302,354$ -$ 2,302,354$
Fund: 423 - Storm Drainage Capital Facil
2021-2022 Current
(Amended Biennial
Budget No. 056.21)
2021-2022
Budget
Amendment
2021-2022 Amended
Biennial Budget No.
XXX-2022
Beginning Fund Balance 99,113$ 99,113$
Revenue -$ -$
Expense -$ 5,200$ 5,200$
Ending Fund Balance 99,113$ (5,200)$ 93,913$
Fund: 433 - Sewer Capital
2021-2022 Current
(Amended Biennial
Budget No. 056.21)
2021-2022
Budget
Amendment
2021-2022 Amended
Biennial Budget No.
XXX-2022
Beginning Fund Balance 2,369,050$ 2,369,050$
Revenue 18,197,100$ 1,410,539$ 19,607,639$
Expense 14,350,000$ -$ 14,350,000$
Ending Fund Balance 6,216,150$ 1,410,539$ 7,626,689$
Enterprise Funds (Capital)
Page 99 of 110
ORDINANCE No. **-22
AN ORDINANCE OF THE CITY OF PORT ORCHARD,
WASHINGTON, AMENDING THE 2021–2022
BIENNIAL BUDGET AS ADOPTED BY ORDINANCE
NO. 035-20, AND AMENDED BY ORDINANCE NO’S.
015-21, 032-21, 050-21, 056-21, and 065-21 TO
RECOGNIZE EXPENDITURES AND REVENUES
NOT ANTICIPATED AT THE TIME OF THE
ADOPTION OF THE 2021–2022 BIENNIAL BUDGET
INCLUDING ADDING TWO ADDITIONAL FULL
TIME EQUIVALENT POSITIONS FOR THE POLICE
DEPARTMENT; PROVIDING FOR TRANSMITTAL
TO STATE; PROVIDING FOR PUBLICATION; AND
SETTING AN EFFECTIVE DATE.
WHEREAS, the City of Port Orchard adopted its 2021 – 2022 Biennial Budget
via Ordinance No. 035-20, which was previously amended by Ordinance Nos. 015-21,
032-21, 050-21, 056-21 and 065-21; and
WHEREAS, the City desires to keep current on budget amendments; and
WHEREAS, it is necessary to consider adjustments to accounts and/or funds by
means of appropriation adjustments that could not have been anticipated at the time of
passage of the 2021 – 2022 Biennial Budget; and
WHEREAS, the City will transfer $239,000 from Fund 001 to Fund 002 for
Crack & Seal, Lund Bridge, and Pavement Preservation
WHEREAS, the City will transfer $1,410,539 of ARPA monies from Fund 001 to
Fund 433 for Sewer Capital Projects and eliminate the previously authorized transfers of
$900,000 of ARPA monies for Water Capital Projects.
WHEREAS, the City will increase expenditure authority for Fund 103 to make
necessary police equipment purchases in the amount of $60,000
WHEREAS, the City Council has previously approved Contract C072-18 for
Tierra Right of Way Services with which requires additional funding from fund 109 in
the amount of approximately $500,000 to fully fund this contract as well as additional
expenses for the project; and
WHEREAS, the City will transfer up to $500,000 from fund 109 to fund 304 for
the Bay Street Pedestrian Pathway Project and will spend the $500,000 additional
funding on the Bay Street Pedestrian Pathway Project; and
Page 100 of 110
WHEREAS, the City will eliminate transfers out of $239,000 from Fund 304 to
Fund 002 for Crack & Seal, Lund Bridge, and Pavement Preservation
WHEREAS, the City will eliminate $900,000 of ARPA monies being
transferred from Fund 001 to Fund 413 for Water Capital Projects and reduce the
expenditure authority by $900,000 as appropriate.
WHEREAS, the City Council has previously approved Contract C073-21 for
Sherman Ave appraisal which requires funding from the Storm Drainage Capital Fund
in the amount of $5,200 to fully fund this contract
WHEREAS, the City will transfer $1,410,539 of ARPA monies from Fund 001 to
Fund 433 for Sewer Capital Projects to support the Sewer Capital infrastructure
projects.
WHEREAS, the City desires to fund two additional Full Time Equivalent (2
FTE) for Patrol Officer positions; and
WHEREAS, the City Council has considered the proposed budget amendments
and finds that amendments authorized by this Ordinance are consistent with applicable
laws and financial policies, and further the public's health, safety and welfare; NOW,
THEREFORE:
THE CITY COUNCIL OF THE CITY OF PORT ORCHARD,
WASHINGTON, DO ORDAIN AS FOLLOWS:
SECTION 1. The 2021-2022 Biennial Budget, and enabling Ordinance No.035-
20 as amended by Ordinance’s No.15-21, 032-21, 050-21,056-21 and 065-21 is herby
amended to reflect the following: including Exhibit A to the 2021 – 2022 Biennial
Budget is amended as shown on the Exhibit A attached hereto.
Page 101 of 110
Fund No. Fund Name Type Ordinance-035-20 Ordinance-050-21 Ordinance-056-21 Adjustment Ordinance-XXX-22
001 Current Expense Fund Revenue 26,069,100$ 33,279,201$ 35,529,201$ -$ 35,529,201$
Expense 26,069,100$ 33,279,201$ 35,529,201$ -$ 35,529,201$
002 City Street Revenue 5,131,900$ 7,601,171$ 7,601,171$ -$ 7,601,171$
Expense 5,131,900$ 7,601,171$ 7,601,171$ -$ 7,601,171$
003 Stabilization Revenue 2,300,000$ 2,693,687$ 2,693,687$ -$ 2,693,687$
Expense 2,300,000$ 2,693,687$ 2,693,687$ -$ 2,693,687$
103 Criminal Justice Revenue 760,900$ 869,508$ 869,508$ -$ 869,508$
Expense 760,900$ 869,508$ 869,508$ -$ 869,508$
104 Special Investigative Unit Revenue 102,000$ 105,797$ 105,797$ -$ 105,797$
Expense 102,000$ 105,797$ 105,797$ -$ 105,797$
107 Community Events Revenue 400,000$ 412,002$ 412,002$ -$ 412,002$
Expense 400,000$ 412,002$ 412,002$ -$ 412,002$
108 Paths & Trails Revenue 12,900$ 13,096$ 13,096$ -$ 13,096$
Expense 12,900$ 13,096$ 13,096$ -$ 13,096$
109 Real Estate Excise Tax Revenue 4,854,000$ 6,193,992$ 6,193,992$ -$ 6,193,992$
Expense 4,854,000$ 6,193,992$ 6,193,992$ -$ 6,193,992$
111 Impact Fee Revenue 2,282,500$ 4,006,467$ 4,006,467$ -$ 4,006,467$
Expense 2,282,500$ 4,006,467$ 4,006,467$ -$ 4,006,467$
206 Bond Redemption Fund Revenue 598,200$ 598,200$ 598,200$ -$ 598,200$
Expense 598,200$ 598,200$ 598,200$ -$ 598,200$
302 Capital Construction Revenue 620,000$ 3,606,707$ 5,881,707$ -$ 5,881,707$
Expense 620,000$ 3,606,707$ 5,881,707$ -$ 5,881,707$
304 Street Capital Projects Revenue 4,328,100$ 7,278,848$ 7,278,848$ 500,000$ 7,778,848$
Expense 4,328,100$ 7,278,848$ 7,278,848$ 500,000$ 7,778,848$
401 Water-Sewer Utilities Revenue -$ -$ -$ -$ -$
Expense -$ -$ -$ -$ -$
403 Water-Sewer Cumulative Reserve Revenue -$ -$ -$ -$ -$
Expense -$ -$ -$ -$ -$
411 Water - Operations Revenue 8,504,400$ 9,694,063$ 9,694,063$ -$ 9,694,063$
Expense 8,504,400$ 9,694,063$ 9,694,063$ -$ 9,694,063$
412 Water - Stabilization Revenue 917,000$ 950,216$ 950,216$ -$ 950,216$
Expense 917,000$ 950,216$ 950,216$ -$ 950,216$
413 Water - Capital Projects Revenue 6,964,200$ 7,419,754$ 7,419,754$ (900,000)$ 6,519,754$
Expense 6,964,200$ 7,419,754$ 7,419,754$ (900,000)$ 6,519,754$
414 Water - Debt Service Revenue 840,250$ 840,250$ 840,250$ -$ 840,250$
Expense 840,250$ 840,250$ 840,250$ -$ 840,250$
421 Storm Drainage - Operations Revenue 5,076,900$ 5,352,120$ 5,352,120$ -$ 5,352,120$
Expense 5,076,900$ 5,352,120$ 5,352,120$ -$ 5,352,120$
422 Storm Drainage - Stabilization Revenue 503,300$ 533,931$ 533,931$ -$ 533,931$
Expense 503,300$ 533,931$ 533,931$ -$ 533,931$
423 Storm Drainage - Capital Projects Revenue 30,100$ 99,113$ 99,113$ -$ 99,113$
Expense 30,100$ 99,113$ 99,113$ -$ 99,113$
424 Storm Drainage - Debt Service Revenue 355,300$ 355,300$ 355,300$ -$ 355,300$
Expense 355,300$ 355,300$ 355,300$ -$ 355,300$
431 Sewer - Operations Revenue 12,659,200$ 13,711,301$ 13,711,301$ -$ 13,711,301$
Expense 12,659,200$ 13,711,301$ 13,711,301$ -$ 13,711,301$
432 Sewer - Stabilization Revenue 1,355,050$ 1,422,016$ 1,422,016$ -$ 1,422,016$
Expense 1,355,050$ 1,422,016$ 1,422,016$ -$ 1,422,016$
433 Sewer - Capital Projects Revenue 9,612,100$ 20,566,150$ 20,566,150$ 1,410,539$ 21,976,689$
Expense 9,612,100$ 20,566,150$ 20,566,150$ 1,410,539$ 21,976,689$
434 Sewer - Debt Service Revenue 550,000$ 550,000$ 550,000$ -$ 550,000$
Expense 550,000$ 550,000$ 550,000$ -$ 550,000$
500 ER&R Revenue 4,927,400$ 5,271,030$ 5,271,030$ -$ 5,271,030$
Expense 4,927,400$ 5,271,030$ 5,271,030$ -$ 5,271,030$
Grand Total Revenue 99,754,800$ 133,423,920$ 137,948,920$ 1,010,539$ 138,959,459$
Grand Total Expense 99,754,800$ 133,423,920$ 137,948,920$ 1,010,539$ 138,959,459$
2021-2022 Biennial Budget
SECTION 2. Transmittal. The City Clerk shall transmit a complete, certified copy
of the amended budget as adopted to the state auditor and to the Association of
Washington Cities per RCW 35.34.130.
SECTION 3. Severability. If any section, sentence, clause or phrase of this
ordinance should be held to be invalid or unconstitutional by a court of competent
jurisdiction, such invalidity or unconstitutionality shall not affect the validity of
constitutionality of any other section, sentence, clause or phrase of this ordinance.
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SECTION 4. Corrections. Upon approval of the city attorney, the city clerk and
the codifiers of this ordinance are authorized to make necessary technical corrections to
this ordinance, including, without limitation, the correction of clerical errors; references
to other local, state, or federal laws, codes, rules, or regulations; or section/subsection
numbering.
SECTION 5. This Ordinance shall be in full force and effect five (5) days after
posting and publication as required by law. A summary of this Ordinance may be
published in lieu of the entire ordinance, as authorized by State Law.
PASSED by the City Council of the City of Port Orchard, APPROVED by the
Mayor and attested by the Clerk in authentication of such passage this 22nd day of
February 2022.
Rob Putaansuu, Mayor
ATTEST:
Brandy Rinearson, MMC, City Clerk
APPROVED AS TO FORM: Sponsored by:
Charlie A. Archer , City Attorney John Clauson, Councilmember
PUBLISHED:
EFFECTIVE DATE:
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City of Port Orchard
Work Study Session Executive Summary
Issue Title: Hiring Incentives Discussion
Meeting Date: February 15, 2022
Time Required: 30 minutes
Attendees: Debbie Lund and Chief Matt Brown
Action Requested At This Meeting: Discussion of incentives for 1) Lateral Police Officers and
2) employee referrals.
Issue: The current recruitment environment is challenging. Unemployment is low, qualified
applicants are in high demand and employers are competing for applicants. The Police Chief
proposed two incentive programs to the Finance Committee. The Finance Committee
indicated support but also desired feedback from the full council before staff makes a final
recommendation.
Proposal 1A: Lateral Police Officer hiring incentive.
Proposal 1B: Crediting of new Lateral Police Officers with vacation leave and sick leave upon
hire.
Proposal 2: A referral incentive for current City employees who refer qualified, successful
candidates to a position with the City.
Background:
Proposal 1:
A) Based on research conducted by the Police Chief, all jurisdictions in Kitsap County are
incentivizing Lateral Police Officer candidates. Financial incentives range from $5,000
to $10,000, one-half payable upon hire, the remaining half payable upon the
completion of probation. Lateral officer candidates would need to sign an agreement
to repay a prorated portion of the incentive if they leave within two years.
B) In addition, some jurisdictions are crediting leave banks with paid time off. Staff is
recommending an initial 40 hours of sick leave and 40 hours of vacation leave credited
to the new lateral officer’s leave banks upon date of hire.
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Executive Summary 5
Page 2 of 2
Proposal 2:
Our employees can become our best recruiters. Other than those employees whose
job it is to recruit (i.e. human resources) or those making the hiring recommendation
and decision (i.e. supervisors and department directors), staff is proposing a financial
incentive of $1,000 to current employees who make the first contact with a successful
applicant for a hard-to-fill position. One-half payable at the time of the applicant’s
hire, the remaining half payable upon that applicant’s successful completion of their
probationary period.
Alternatives: Provide staff with alternative suggestions or direction.
Recommendation:
Proposal 1A: If council is supportive of the concept, staff is seeking guidance as to the amount
of the incentive. The Finance Committee discussed support for $10,000. Please note that
Police Guild must also agree to this incentive program.
Proposal 1B: Implement a program to provide 40 hour vacation and 40 hour sick leave
balances to new Lateral Police Officer hires. Please note that Police Guild must also agree to
this incentive program.
Proposal 2: Expand upon the Chief’s initial request to provide $1,000 referral incentive for
Police Officers to any hard-to-fill position, as determined by the Mayor. Please note that we
will need Memorandums of Understanding (MOU’s) with all 5 unions and a City policy to
implement this program.
Relationship to Comprehensive Plan: n/a
Attachments:
1) Memo from Police Chief to Finance Committee
2) Draft policy related to Lateral Police Officer hiring incentive
3) Draft policy related to an Employee Referral Program
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PORT ORCHARD POLICE DEPARTMENT
SERVICE • HONOR • INTEGRITY
Page 1 of 2
MEMORANDUM
TO: Rob Putaansuu, Mayor
FROM: Matt Brown, Chief of Police
SUBJECT: Incentive Pay
DATE: December 20th, 2021
_____________________________________________________________________________________________
This memo is to request your consideration for the following recruiting tools:
1. Financial incentive for lateral peace officer candidates.
2. Financial incentive for current employees to recruit peace officer candidates.
The Port Orchard Police Department does not currently offer any hiring incentives for eligible
lateral peace officers. We are the outlier in Kitsap County, and this is affecting our ability to recruit.
The cost to send a new officer to the state police academy is $4,431, not including wages and
travel. Additionally, a new police officer takes nearly a year to go from date-of-hire to operating
independently.
Bainbridge Island Police Department
• $5,000 hiring incentive – $2,500 is payable upon hire. The remaining $2,500 is paid upon
completion of the probationary period.
• 80 hours vacation.
Bremerton Police Department
• $10,000 hiring incentive - $5,000 is payable upon hire. The remaining $5,000 is paid upon
completion of the probationary period.
• Longevity bonus pay.
• 40 hours vacation.
• 40 hours sick leave.
Kitsap County Sheriff’s Office
• $5,000 hiring incentive – $2,500 is payable upon hire. The remaining $2,500 is paid upon
completion of the probationary period.
• Longevity and annual leave accrual rate based upon prior service time as a full-time
commissioned law enforcement officer.
• One week (53.3 hours) of annual leave and one week of sick leave (53.3 hours) in addition
to determined annual accrual.
Poulsbo Police Department
• $5,000 hiring incentive - $2,500 is payable upon hire. The remaining $2,500 is paid upon
completion of the probationary period.
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PORT ORCHARD POLICE DEPARTMENT
SERVICE • HONOR • INTEGRITY
Page 2 of 2
Recruiting Incentive
Our officers are the City’s best recruiters with a higher likelihood of bringing in positive candidates
than any other recruitment strategy. One sergeant, with his connections in the fitness industry and
the Marine Corp., recently introduced two candidates to the department. They were both hired.
I strongly recommend incentivizing our staff with a recruitment bonus should they successfully
bring new officers and professional staff into the agency.
• $500 upon offer of hire to a new member.
• $500 upon completion of probation by that new member.
This monetary incentive demonstrates the City values this recruitment strategy and the current
members of our team who work diligently to bring in the right people.
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1. The City may offer a $XXXX recruitment incentive to Lateral Police Officer
candidates who have:
a. Completed the Washington State Basic Law Enforcement Academy;
b. Meet all other criteria to be eligible for consideration as a Lateral Police Officer
Candidate under the City of Port Orchard’s Police Civil Service Rules; and
c. Been given an unconditional offer and accepted the position of Patrol Officer
with the Port Orchard Police Department.
2. The incentive will be paid on the first available paycheck, as determined by payroll,
based on the following schedule:
a. $XXX (first half) after date of hire
b. $XXX (second half) after successful completion of probation
3. Lateral Police Officers hired during the term of this MOU will receive 40 hours of sick
leave and 40 hours of vacation leave in their leave banks effective with the first
available paycheck after date of hire.
4. Lateral Police Officers accepting the recruitment incentive will be required to sign an
agreement agreeing to repay the first half of the incentive if they voluntarily separate
or are removed from employment for cause before reaching their one year anniversary
and agreeing to repay the second half of the incentive if they voluntarily separate or are
removed from employment for cause after their one year anniversary but before
reaching their two year anniversary. Repayment of each half will be pro-rated based on
the length of their employment.
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**** DRAFT PROPOSED POLICY ******
3.10 EMPLOYEE REFERRAL PROGRAM
At the discretion of the Mayor, the City may provide a Referral Incentive to an Eligible Referring
Employee who refers to the City a qualified applicant who is subsequently selected and
successfully employed in an Eligible Position.
A) Definitions
Applicant: Persons who are not currently employed by the City in any capacity including
temporary, seasonal, or limited term.
Eligible Position: Positions eligible for this program must be determined by the Mayor to
be “hard to fill” positions. The following factors should be considered when
designating a position as “hard to fill”:
• how critical the position is to the City’s operation and mission,
• the success of recent efforts to recruit candidates and retain employees in like
positions,
• the availability in the labor market of well-qualified candidates for
employment,
• recent turnover in similar positions,
• special qualifications needed for the position, and
• other unique factors that demonstrate difficulty in filling the position.
Eligible Referring Employee: City employee occupying a regular status position with the
exception of:
• Director, manager, supervisor and other person(s) associated with the selection
of the candidate,
• All Human Resources staff members,
• Any employee assigned to perform recruitment functions on behalf of their
department and/or the City, and
• Family members (as defined in Personnel Policy 3.5) of the Applicant.
Referral Incentive: A cash payment to the Eligible Referring Employee when an
Applicant has been successfully employed by the City
B) Referral Incentive Payment. A referral incentive is payable to an Eligible Referring
Employee when the position has been designated as an Eligible Position by the Mayor at
some stage of the recruitment process, prior to selecting a final candidate. A $500 incentive
is payable in the next available paycheck to the Eligible Referring Employee after the
Applicant’s first day of employment. An additional $500 is payable in the next available
paycheck to the Eligible Referring Employee after the Applicant’s completion of their
probationary period.
C) Referral Incentive Program Administration.
1. Referral Incentives are awarded at the discretion of the Mayor, who has the final
decision.
2. Referral Incentives are intended to be a financial incentive for Eligible Referring
Employees to reach out to qualified Applicants as a first contact from the City
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regarding specific employment opportunities.
3. The City will require the Applicant to identify the Eligible Referring Employee. In
the event more than one Eligible Referring Employee is identified by the Applicant
and a Referral Incentive is payable, a random drawing of names submitted by the
Applicant will be conducted to achieve a single Eligible Referring Employee.
4. The Eligible Referring Employee must be a City employee at the time any Referral
Incentive payment is paid.
5. The hiring process will be fair and consistent with City policies, with no bias for or
against candidates whose selection might make another employee eligible for a
Referral Incentive. All information regarding the hiring decision will remain
confidential.
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