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02/15/2022 - Work Study - PacketJ , IYW 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 Mayor: COVID. The City is providing options for the public to attend through telephone, Rob Putaansuu internet or other means of remote access, and also provides the ability for Administrative Official persons attending the meeting (not in -person) to hear each other at the some Councilmembers: time. Therefore; MarkTrenary E/D & Tourism Committee Utilities/Sewer Advisory Committee Remote access only Transportation Committee KRCC-alt Webinar Link: https://us02web.zoom.us/m/89343418695 Shawn Cucciardi Webinar ID: 893 4341 8695 Finance committee Zoom Call -In: 1 253 215 8782 E/D & Tourism Committee Lodging Tax, Chair Guiding Principles Fred Chang . Are we raising the bar? Economic Development& Tourism Committee Land Use Committee g � In past? g p . Are we honoring the pastbut not livin the Transportation Committee . Are we building connections with outside partners? Jay Rosa pepe • Is the decision -making process positively impacting diversity, equity, and Finance Committee, inclusion? Land Use Committee KRCC, PSRC-alt, PSRCTranspol-alt, KRCCTranspol-alt, KRCC Planpol-alt, CALL TO ORDER John Clauson Finance Committee, Chair Pledge of Allegiance Utilities/Sewer Advisory Committee Kitsap Public Health District-alt Cindy Lucarelli (Mayor Pro-Tempore) DISCUSSION ITEMS: Festival of Chimes & Lights Committee, Chair Utilities/Sewer Advisory Committee, 1. Proposed 2022 Comprehensive Plan Amendment Docket (Bond) Page Kitsap Economic Development Alliance Scott Diener 2 Land Use Committee Estimated Time: 20 minutes Transportation Committee Department Directors: 2. KRCC CPP Population Growth Targets (Bond) Page 11 Nicholas Bond, AICP Development Director Estimated Time: 25 minutes Mark Dorsey, P.E. Director of Public Works/City Engineer 3. McCormick Water CFC Credit Agreement (Bond) Page 17 Tim Drury Estimated Time: 20 minutes Municipal Court Judge Noah Crocker, M.B.A. Finance Director 4. 2021-2022 Budget Amendment (Crocker) Page 95 Matt Brown Estimated Time: 15 minutes Police Chief Brandy Wallace, MMC, CPRO (Lund) S. Hiring Incentives Discussion Lund Page 104 City Clerk CityCl Meeting Location: Estimated Time: 30 minutes Council Chambers, V Floor 216 Prospect Street 6. Retreat Topics (Mayor) Port Orchard, WA 98366 Estimated Time: 15 minutes Contact us: (360) 876-4407 Good of the Order cityhal I@cityofportorchard.us Please turn off cell phones during meeting and hold your questions for staff until the meeting has been adjourned Meeting materials are available on the City's website: www.citvofportorchard.us or by contacting the City Clerk's Office, 360.876.4407 The City of Port Orchard does not discriminate on the basis of disability. Contact the City Clerk's office should you need special accommodations. Back to Agenda Issue Title Meeting Date Time Required Attendees City of Port Orchard Work Study Session Executive Summary Proposed 2022 Comprehensive Plan Amendment Docket February 15, 2022 20 minutes Nicholas Bond Action Requested at this Meeting: Tentative concurrence on proposed Comprehensive Plan Amendment docket. 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 Page 2 of 110 Back to Agenda 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@citvofportorchard.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) L&WLAgenda Priority Road Name Total Federal State Numb Begin Termini Project Total Est. Spent Prior to Future Phase Funding Fund Fund er Project Title/Project Description End Termini Length Cost 2021 2021 Expenditures 2022 2023 2024 2025 2026 2027 Start Year Status Phase Code Federal Funds Code State Funds Local Funds Capital Projects 1.1 Bay Street Ped. Pathway ROW Phase PO Shoreline: Sidney Add 14-ft Multi -Modal (bikes & pedestrians) Ave. Foot Ferry to 1.2 2,220,000 1,140,000 540,000 540,000 540,000 0 0 0 0 0 2013 S ROW STP(U) 1,923,590 0 300,212 waterfront pathway & cantilevered retaining wall Annapolis Foot Ferry 500,000 250,000 250,000 250,000 0 0 0 0 0 2018 P ROW 0 581,000 following historic Mosquito Fleet trail and pedestrian bridge across Black Jack Creek. 1.2 Bay Street Pedestrian Pathway Construction (S#1, S#6-11) The CN phase for the 14-ft Multi -Modal (bike & ped) 1.2 650,000 650,000 0 0 0 0 0 0 2018 S CN waterfront pathway/cantilevered retailing wall 0 0 3,000,000 0 0 3,000,000 0 1,500,000 1500000 0 0 0 2021 S CN following the historic Mosquito Fleet trail. Includes the demolition/removal of (5) overwater structures. 1.3 Inrliirlac Saa #3 Ad Raadv nnr. Pran. Bay Street Pedestrian Pathway West Port Orchard Blvd Situational study and Bay St: Ft Ferry 1.5 566,474 566,474 566,474 2022 490,000 0 76,474 to Tremont 0 0 0 0 0 0 0 P PL 1.4 Old Clifton/ Anderson Hill Intersection Improvements Intersection Improvements (roundabout) as identified in the McCormick Urban Village Trans Plan and partially funded by Bayside Mit Funds. Old Clifton Rd / Anderson Hill Rd. 0 Intersection 258,000 1,680,000 200,000 0 0 0 58,000 1,680,000 58,000 0 0 0 840,000 840,000 0 0 0 2016 0 2021 S P PE CN 0 TIB 1,213,000 258,000 525,000 1.5 Old Clifton Rd Design - 60% Old Clifton Road: Rodway Improvements identified in the McCormick Campus PKWY to 0.75 450,000 0 225,000 225,000 225,000 0 0 0 0 0 2021 P PE 0 450,000 Urban Village Trans Plan. Design to 60% level. Anderson Hill Rd. 2,000,000 2000000 2025 P CN STP(U), TIB/CS Includes RAB design at McC Woods Dr. intersection. RCO 1.7 Bethel/Sedgwick Phase Sa - Bethel/Lincoln RAB Bethel/Lincoln/Lunb erg/ Mitchell Safety and capacity improvements to intersection and 0 4,000,000 0 800,000 2021 S PE 800,000 reconfiguration of approaches. 0 3,200,000 3200000 0 2022 S/P CN HSP 1,500,000 TIB UAP 1,100,000 700,000 1.8 Bethel/ Sedgwick Cooridor Phase 1a - Blueberry RAB Bethel Road: blueberry Phase 1a. Bethel/ Blueberry RAB 60% DN in 2022 0 2,746,000 0 0 570,000 250,000 170,000 150,000 2022 S PE 0 344,374 74,626 Intersection 268,000 268,000 2023 S ROW 220,238 47,732 1,908,000 1908000 2025 P CN TIB/ 1,568,178 307,051 UAP/CS 1.9 Bete Sedgwick Corridor Phase 1 - Salmonberry RAB Bethel Road: Salmonberry intersection Phaselb. Bethel/ Salmonberry RAB Round and roadway segment design from Blueberry to Salmonberry. 30% DN in 2022. 0 5,056,750 0 0 800,000 100,000 500,000 200,000 2025 P PE 0 328,058 57,893 1,328,450 1,328,450 2024 P ROW 1,129,183 199,238 2,928,300 2,928,300 2026 P CN TIB/UAP/ 2,489,055 439,245 CS 1.10 Vallair Ct Connector Bethel Road / Road extension and intersection improvements Walmart Drive 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 previously included in the Bethel Road Corridor ROW Intersection 1,000,000 0 0 1,000,000 0 0 0 0 1000000 0 2025 P CN 0 TIB 0 1,000,000 & Construction project. 1.11 Sidney Road SW Design - 60% Sedgwick Rd. to Sidney Avenue is currently two lanes wide, it needs to Berry Lake Rd. be widened to three lanes (additional TWTL) including bike lanes, sidewalks, traffic calming, and stormwater system improvements. (COMPLETE STREET). 1.12 Sedgwick Road West Study - 30% Design SR16 to Sidney Rd. Establish alignments and cross sections. Develop mitigation alternatives and identify right-of-way needs 300,000 0 0 300,000 0 300,000 2023 P Study for roadway and identify potential sites to accommodate stormwater run off and mitigation for filling wetlands. Include stormwater element for 2/11/2022 P�9�,41off11l0 U:\Comp Plan\2022 Comprehensive Plan Amendments\Submittal\2022-2041 TIP.1072021 DRAFT City of Port Orchard Six -Year Transportation Improvement Program For 2022-2027 TIER 1 (Reasonably Constrained) Back to Agenda Road Name Priority Total Federal State Numb Begin Termini Project Total Est. Spent Prior to Future Phase Funding Fund Fund P-A Termini er project i itie/project uescnption Lengtn t,ost LULL ZuZI Lxpenanures zuzz 2u23 2u24 zuz5 ZUZb ZUZ/ start rear matus phase t.oae reaerai tunas t.oae mate Tunas Locai Tunas Sidney Rd. S. to 1.13 Lippert Sidewalk Retrofit and Pavement Repair Pottery ADA ramp and driveway retrofits, sidewalk reparis, 0.95 35,000 0 35,000 0 2021 P PE pavement repairs, stormwater retrofit. In house des 778,000 778,000 778,000 2022 P CN CDBP 100,000 678,000 with consulted survey & basemap Sunset Ln. to Clay Ln. 1.14 Pottery Avenue Sidewalk Improvements Address gap in sidewalk. Design in house. Survey 0.95 35,000 0 0 35,000 35,000 2022 P PE and basemap by others. 778,000 155,000 0 155,000 2024 P CN 250,000 SR16 to Lippert Dr. 1.15 Pottery Avenue Non Motorized Improvements Road diet and non -motorized Improvements. Safety 0.95 35,000 0 35,000 0 35,000 2024 P PE enhancement at Pottery Lippert Intersection. Safe 750,000 750,000 0 750,000 2025 P CN SRTS 648,750 101,250 Routes to Schools Grant application. 1.16 Bay Street Reconstruction SR160 from Geiger Raise street to address sea level rise and improve to to Frederick current standard in accomdance with redevelopment plans Total Capital Projects 0 0 950,000 23927224 1,990,000 1815000 22,122,224 4565000 4,202,474 3668450 5058000 4128300 500000 2022 S PE 2024 CN PSRC 3,913,590 8,392,086 7,316,471 Maintenance Projects Total 2,021 Future Exp 2022 2023 2024 2025 2026 2027 1.51 Annual Pavement Maintenance Includes patching, crack -sealing, striping, and other 509,500 0 53,000 456,500 56,500 100,000 100,000 100,000 100,000 0 2020 S CN 456,500 activities 1.52 * Annual Sidewalk & ADA Upgrade Program Repair and replace concrete sidewalks and curb ramps 796,000 0 38,000 758,000 38,000 180,000 180,000 180,000 180,000 0 2020 S CN 758,000 as identified in the program 1.53 ** Annual Pavement Management System Paving Projects Pavement replacement projects as identified in the 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 1.55 Tremont Overlay Pavement resurfacing to complete the surfacing of Tremont St: Port 0.5 500,000 0 Tremont from SR-16 to the eastern city limits Orchard Blvd to Lund bridge 0 500,000 0 500,000 0 0 0 0 2021 P PE,CN 2,035,000 500,000 Total Maintenance Projects 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. 2/11/2022 P�q�,520M' 0 U:\Comp Plan\2022 Comprehensive Plan Amendments\Submittal\2022-2041 TIP.1072021 City of Port Orchard Transportation Improvement Program (TIP) Back to Agenda For 2026-2039 TIER 2 (Unconstrained) Road Name Total Phase Priority Begin Termini Project Start Funding Federal State Fund Number Project Title/Project Description End Termini Length Total Est. Cost 2028-2033 2034-2041 Year Status Phase Fund Code Federal Funds Code State Funds Local Funds Capital Projects 2.01 Sidney Avenue (North of SR 16) Tremont Street to 1 3,750,000 3,750,000 0 2028 P PE/RW STP(U) 0 0 3,750,000 The design, permitting, right-of-way acquisition Fireweed 6,750,000 6,750,000 0 2030 P CN STP(U) 0 0 6,750,000 and construction for this project with bike lanes, storm drainage and sidewalks. (COMPLETE STREET) 2.02A Sedgwick Road West - Design, Permitting & ROW SR 16 Interchange to 0.4 462,428 462,428 0 2028 P PE STP(U) 400,000 0 62,428 The design, permitting and right-of-way Sidney Avenue 693,642 693,642 0 2029 P RW STP(U) 600,000 0 93,642 acquisition phase for this widening project with 3 lanes (continuous TWTL), bike lanes, sidewalks and box culvert across Blackjack Creek.) 2.0213 Sedgwick Road West - Construction SR 16 Interchange to 0.4 3,468,208 3,468,208 0 2030 P CN STP(U) 3,000,000 0 468,208 The construction phase for this widening project Sidney Avenue with 3 lanes (continuous TWTL), bike lanes, sidewalks and box culvert across Blackjack Creek.) Bethel/Sedgwick Corridor Phase 1 - ROW Bethel Road: 2.04A.1 and Construction Salmonberry to ROW acquisition and construction of the first Blueberry. 0.75 2,056,000 2,056,000 0 2028 P RW 0 0 2,056,000 phase of the street improvements per the 9,124,000 9,124,000 0 2030 P CN 9,124,000 0 0 Bethel/Sedgwick Corridor Plan (2018). Includes improvements to Ramsey Road for detour per 2.04A.2 below. 2.04A.2 Ramsey Road Widening Sedgwick Road to Widen road to two travel lanes with bike lanes, Salmonberry Road 0.5 2,500,000 0 2,500,000 2028 P ALL 0 0 0 sidewalks and stormwater system improvements. Bethel/Sedgwick Corridor Phase 2 - Design, Sedgwick Road: SR-16 2.046 ROW and Construction interchange to Bethel 1,110,000 1,110,000 0 2030 P PE 0 0 1,110,000 Design, ROW acquisition and construction of the 0.7 2,802,000 2,802,000 0 2031 P RW 0 0 2,802,000 second phase of the street improvements per the 12,757,000 12,757,000 0 2032 P CN 12,725,000 0 0 Bethel/Sedgwick Corridor Plan (2018). Bethel/Sedgwick Corridor Phase 3 - Design, Bethel Road: Blueberry 2.04C ROW and Construction to Sedgwick 422,000 422,000 0 2032 P PE 0 0 422,000 Design, ROW acquisition and construction of the 0.25 541,000 541,000 0 2033 P RW 0 0 541,000 third phase of the street improvements per the 4,859,000 4,859,000 0 2034 P CN 4,859,000 0 0 Bethel/Sedgwick Corridor Plan (2018). 2/11/2022 PW630bfV U:\Comp Plan\2022 Comprehensive Plan Amend ments\Submittal\2022-2041 TIP.10_7_2021 City of Port Orchard Transportation Improvement Program (TIP) Back to Agenda For 2026-2039 TIER 2 (Unconstrained) Road Name Total Phase Priority Begin Termini Project Start Funding Federal State Fund Number Project Title/Project Description End Termini Length Total Est. Cost 2028-2033 2034-2041 Year Status Phase Fund Code Federal Funds Code State Funds Local Funds Bethel/Sedgwick Corridor Phase 4 - Design, Bethel Road: Lund to 2.04D ROW and Construction Salmonberry 616,000 0 616,000 2034 P PE 0 0 616,000 Design, ROW acquisition and construction of the 0.5 1,041,000 0 1,041,000 2035 P RW 0 0 1,041,000 fourth phase of the street improvements per the 7,087,000 0 7,087,000 2036 P CN 7,087,000 0 0 Bethel/Sedgwick Corridor Plan (2018). Bethel/Sedgwick Corridor Phase 5 - Design, Bethel Road: Mile Hill 2.04E ROW and Construction Drive to Lund 720,000 0 720,000 2036 P PE 0 0 720,000 Design, ROW acquisition and construction of the 1.1 1,532,000 0 1,532,000 2037 P RW 0 0 1,532,000 fifth phase of the street improvements per the 8,283,000 0 8,283,000 2038 P CN 8,283,000 0 0 Bethel/Sedgwick Corridor Plan (2018). 2.05 Sidney Road SW Widening Sidney Road SW: Sidney Avenue is currently two lanes wide, it SR 16 Overpass to 0.95 500,000 500,000 0 2028 P PE 0 0 500,000 needs to be widened to three lanes (additional Sedgwick Road 5,761,850 5,761,850 0 2029 P CN STP(U) 3,600,000 TIB 1,600,000 561,850 TWTL) including bike lanes, sidewalks, traffic calming, and stormwater system improvements. (COMPLETE STREET). 2.06 Pottery Avenue Widening Pottery Avenue: Widen road to two travel lanes with bike lanes, Tremont Place to 0.22 1,600,000 1,600,000 0 2029 P ALL 0 0 1,600,000 sidewalks and stormwater system improvements. Melcher Street 2.07 Old Clifton Rd Shoulder & Pedestrian Improvements Old Clifton Road: Design and construction of shoulder widening, Anderson Hill to 1.35 2,700,000 2,700,000 0 2028 P CN 0 0 2,000,000 street lighting, watermain extension and grade- Westerly City Limits seperated Pedestrian Path as identified in the McCormick Urban Village Trans Plan. 2.08 O. Clifton Rd & McC. Woods Dr. Intersection Old Clifton Rd/ Design and construction of intersecion McCormick Woods Dr. 0 250,000 0 250,000 2032 P PE 0 0 250,000 (roundabout) improvements including street Intersection 750,000 0 750,000 2033 P CN 0 0 750,000 lighting, as identified in the McCormick Urban Village Trans Plan. 2.09 Melcher Street Widening Melcher Street West is currently a narrow two- Melcher Street: 0.4 600,000 0 600,000 2032 P ALL 0 0 750,000 lane road. The reconstruction would widen the Pottery Avenue to road to allow two safe travel lanes, bike lanes, Sherman Avenue sidewalks and a stormwater system. 2.10 Fireweed Road Widening 2/11/2022 74PbfV U:\Comp Plan\2022 Comprehensive Plan Amend ments\Submittal\2022-2041 TIP.10_7_2021 City of Port Orchard Transportation Improvement Program (TIP) Back to Agenda For 2026-2039 TIER 2 (Unconstrained) Road Name Total Phase Priority Begin Termini Project Start Funding Federal State Fund Number Project Title/Project Description End Termini Length Total Est. Cost 2028-2033 2034-2041 Year Status Phase Fund Code Federal Funds Code State Funds Local Funds Fireweed is currently a narrow two lane road. The Fireweed Road: 0.25 375,000 0 375,000 2035 P ALL 0 0 750,000 reconstruction would widen the road to allow for Sidney Avenue to safe travel lanes, bike lanes, sidewalks and a South Flower Avenue stormwater system. 2.11 Sherman Avenue Widening Sherman Avenue: Sherman Avenue is currently a narrow two-lane Fireweed Road to 0.35 525,000 0 525,000 2032 P ALL 0 0 750,000 road. The reconstruction would widen the road to Terminus at SR 16 allow two safe travel lanes, bike lanes, sidewalks and a stormwater system. 2.12 Tremont St Widening - Port Orchard Blvd (Ph. 2) Port Orchard Blvd. Construct roundabouts at Tremont Street/PO Tremont Street to 1.1 809,250 0 809,250 2033 P PE STP(U) 700,000 0 109,250 Blvd. and Bay Street (SR166)/PO Blvd. and curb, Ba Street SR166 Y ( ) gutter, bike lanes, sidewalks, street lighting, storm 520,231 0 520,231 2035 P RW STP(U) 450,000 0 70,231 drainage and Schedule 74 Undergrounding. 7,225,434 0 7,225,434 2037 P CN STP(U) 6,250,000 0 975,434 2.13 Pottery Avenue Widening Tremont to SR16 Pottery Avenue Pottery is currently a two-lane road, it needs to be Tremont Street 0.95 500,000 500,000 0 2030 P PE STP(U) 432,500 67,500 widened to a four -lane road, with sidewalks, SR 16 Overpass traffic calming and upgrades to the stormwater 750,000 750,000 0 2031 P RW STP(U) 648,750 101,250 system. 2,950,000 2,950,000 0 2033 P CN STP(U) 2,292,250 0 657,750 2.14 Old Clifton Berry Lake Road Intersection 0 0 0 0 0 0 0 Intersection Improvement by Kitsap County 2.15 Blueberry Road Widening Geiger Road to Bethel Widen road to two travel lanes with bike lanes, Road 0.4 600,000 0 600,000 2036 P ALL 0 0 0 sidewalks and stormwater system improvements. 2.16 Geiger Road Widening Sedgwick Road to Widen road to two travel lanes with bike lanes, Blueberry Road 0.25 375,000 0 375,000 2034 P ALL 0 0 0 sidewalks and stormwater system improvements. 2.17 Salmonberry Road Widening Ramsey Road to Bethel Widen road to two travel lanes with bike lanes, Road 0.15 225,000 0 225,000 2028 P ALL 0 0 0 sidewalks and stormwater system improvements. 2.18 Piperberry Way Extention Geiger Road to Ramsey Provide an extetion of Piperberry from Ramsey to Road 0.25 575,000 0 575,000 2034 P ALL 0 0 0 Geiger and a new street connection to the proposed round about on Sedgwick. 2.19 Old Clifton & Feilgly Intersection Feigly intersection 2/11/2022 PW850bfV U:\Comp Plan\2022 Comprehensive Plan Amend ments\Submittal\2022-2041 TIP.10_7_2021 City of Port Orchard Transportation Improvement Program (TIP) Road Name Priority Begin Termini Number Project Title/Project Description End Termini Complete streets improvemets indentified in the McCormicks Urban Village Transportation Plan. Continuation of 1.5A 2.20 Bay Street Pathway - West Continuation of project following study in 1.8 2.21 Walmart to Salmonberry Connector Complete roadway connnection For 2026-2039 TIER 2 (Unconstrained) Back to Agenda Total Phase Project Start Funding Federal State Fund Length Total Est. Cost 2028-2033 2034-2041 Year Status Phase Fund Code Federal Funds Code State Funds Local Funds 0 2,800,000 0 2,800,000 2040 P ALL 0 0 0 Tremont to Footferry 0 4,000,000 4,000,000 0 2030 P ALL 0 0 0 Salmonberry 0 800,000 0 800,000 2040 P ALL 0 0 0 2.22 Downtown Bay Street Study Port Orchard Blvd to Study main street in downtown port orchard for Mile Hill Dr intersection 0 1,000,000 0 1,000,000 2033 P ALL 0 0 0 complete streets with bikelanes and streetscape with Bay Street. for pedestrians and storefronts. Study to address traffic cirulcation and raising streets for seal level rise and assocated stormwater and other utility improvements. 2.23 Bay Street Improvements Port Orchard Blvd to Complete Street and utlitiy improvements. Refer Mile Hill Dr intersection 0 10,000,000 0 10,000,000 2040 P ALL 0 0 0 to Study. with Bay Street. 2.24 Bay St. & Port Orchard Blvd Intersection Bay Street at Port Single Lane Round About to address safety and Orchard Bulivard 0 3,000,000 0 3,000,000 2040 P ALL 0 0 0 capacity. Bay Street Pathway crossing. Assumed creek is not impacted by project/ no major mitigation. 2.25 Bay St. & Kitsap Street Intersection Improvement Bay Street at Kitsap Re -align Kitsap intersection to addres safety and Street 0 2,000,000 0 2,000,000 2040 P ALL 0 0 0 capacity. Cline to end at Kitsap. Relocate flag pole. Signalized Intersection? 2.26 Bay St. & Mitchell and Wetzil Bay Street at Mitchell Reconfigure intersections to address safety and Avenue and Guy Wetzil 0 2,500,000 0 capacity. Rd. 2,500,000 2040 P ALL 0 0 0 2/11/2022 PWqtPbf1P U:\Comp Plan\2022 Comprehensive Plan Amend ments\Submittal\2022-2041 TIP.10_7_2021 City of Port Orchard Transportation Improvement Program (TIP) Back to Agenda For 2026-2039 TIER 2 (Unconstrained) Road Name Total Phase Priority Begin Termini Project Start Funding Federal State Fund Number Project Title/Project Description End Termini Length Total Est. Cost 2028-2033 2034-2041 Year Status Phase Fund Code Federal Funds Code State Funds Local Funds 2.27 Sidney Avenue Improvements Prospect St. to the Sidewalk and streetscape improvements. Waterfront 0 1,500,000 0 1,500,000 2040 P ALL 0 0 0 Developer Imrpovements? 2.28 Harrison Avenue Improvements Bay Street to the Sidewalk and streetscape improvements. Signal Waterfront 0 1,000,000 0 1,000,000 2040 P ALL 0 0 0 replacement? Developer Project? 2.28 Fredrickson Ave Impr. Cline St. to Sidney Ave. Convert to two way street with angled parking. 0 1,500,000 0 1,500,000 2040 P ALL 0 0 0 Provide sidewalk and streetscape impr. 2.29 New Waterfront Street Cline Street to Harrson Sidewalk and streetscape improvements. "Shared Avenue 0 2,500,000 0 2,500,000 2040 P ALL 0 0 0 Street" concept. Developer Improvement? Total Tier 2 Capital Projects 98,166,043 63,557,128 34,608,915 60,451,500 1,600,000 31,857,543 Maintenance Project 2.51 Cline Avenue Repairs Replace sidewalk and parking strip. Cline Avenue: 0.13 200,000 0 0 P ALL 200,000 Kitsap Street to Dwight Street Total Tier 2 Maintenance Projects 200,000 0 0 0 0 200,000 2/11/2022 FpWgd7,:6f10 U:\Comp Plan\2022 Comprehensive Plan Amend ments\Submittal\2022-2041 TIP.10_7_2021 Back to Agenda Issue Title Meeting Date Time Required Attendees City of Port Orchard Work Study Session Executive Summary KRCC CPP Population Growth Targets February 15, 2022 25 minutes Nick Bond, AICP 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. 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. 30— Regi anal C,YOwtri Strategy 4�•e:�l•an Crn Cue Cnes Hiil :a:e[i:r-�[n:-i C�iesai[r;.ns IJiAn4•i,:sryc�[i[d . ••I n S."..h 4% • 87,C06 12% • SUCO SR • 21 UN- 95% -+9. i77 4% • MAO aS% • 18599 24% • 424.60E AeFCe N%•187,8W I M•&SAW 1 ITA,77UM I 7%•2500E Im ,8%•29.WO --0Va 3%•1UM 21%,89400E KWO 34'6 3;.000 Nm 4446•d31,079 16% n.000 d6%-04000 C 0%-SA90 K0'i00 40% 346.000 11%-92,000 5%-44.000 O%-TOM 3%•6.099 W1. W30C Figure ttnote: May not sum accurately due to rounding. Snohomish County Gilles B To was and Rural figures are Founded to the nearest hall percent and 560 population- Other5gures are rounded to the nearest Whole percentage and 1, 000 population. Page 11 of 110 Back to Agenda LACI.0 IIVC JUI III IIQI V 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 High -Capacity Transit Communities 2020-2044 2020-2044 Allocations by Regional Geography 24,368 24368 Requested Allocation (Low) Requested Allocation (High) Land Capacity Land Surplus/ Deficit Low Land Surplus Deficit High Bainbridge Island (based on .5% and 1% growth) 3,157 6,696 5,301 2,144 -1,395 Kingston 3,500 4,000 2,791 -709 -1,209 Port Orchard 10,000 14,000 16,250 6,250 4,250 Port Orchard UGA 3,552 3,552 3,552 0 0 Poulsbo 4,581 7,035 4,581 0 -2,454 Poulsbo UGA 965 965 965 0 0 Total (Low/High) 25,755 36,248 Regional Allocation vs Proposed 1,387 11,880 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. Page 12 of 110 Back to Agenda LACI.0 IIVC JUI III IIQI V 2 Page 3 of 4 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. 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. 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 Back to Agenda LACI.0 IIVC JUI III IIQI V 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 Page 14 of 110 Back to Agenda 30 Regional Growth Strategy • vi-)iyN 2050 t� TOTAL L 7 Metropolitan Cities Core Cities High Capacity Transit Cities and Towns Urban Unincorporated Rural Communities 36% • 637,000 28% • 496,000 24% • 413,000 6% • 109,000 3% • 57,000 2% • 43,000 100% • 1,756,000 1,222,000 921,000 878,000 338,000 172,000 536,000 4,067,000 Metropolitan Cities Core Cities High Capacity Transit Cities and Towns Urban Unincorporated Rural Communities 1 111 1 111 M 111 TOTAL GROWTH 44% • 514,000 35% • 407,000 13% • 155,000 4% • 49,000 2% • 21,000 1% • 13,000 100% • 1,158,000 2017 BASE 1,047,000 642,000 269,000 100,000 81,000 95,000 2,233,000 Figure 6 note: May not sum accurately due to rounding. Snohomish County Cities & Towns and Rural figures are rounded to the nearest half percent and 500 population. Other figures are rounded to the nearest whole percentage and 1,000 population. Page 1q of 110 VISION 2050 Back to Agend Regionai �rowrn �rra y-33 High Capacity Transit Communities 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 z d A 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 (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. Pag08 0V 110 Back to Agenda Issue Title Meeting Date Time Required Attendees City of Port Orchard Work Study Session Executive Summary McCormick Water CFC Credit Agreement February 15, 2022 20 Minutes Nick Bond, AICP Action Requested at this Meeting: Review and Discuss the Draft McCormick Water CFC Credit Agreement. 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. Page 17 of 110 Back to Agenda / 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. Page 18 of 110 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 CREDIT AGREEMENT FOR CAPITAL FACILITY CHARGES Page 1 1454988.17 - 366922 -0029 Page 19 of 110 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. 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 ("BRU") 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) CREDIT AGREEMENT FOR CAPITAL FACILITY CHARGES Page 2 FG:54353236.12 1454988.17 - 366922 -0029 Page 20 of 110 Back to Agenda 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. CREDIT AGREEMENT FOR CAPITAL FACILITY CHARGES Page 3 FG:54353236.12 1454988.17 - 366922 -0029 Page 21 of 110 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 $ 11,840,625 Eligible ERU's (McCormick Property) 2,000 Water Capital Facility Charge Credit per ERU $ 5,920 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. CREDIT AGREEMENT FOR CAPITAL FACILITY CHARGES Page 4 FG:54353236.12 1454988.17 - 366922 -0029 Page 22 of 110 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 CREDIT AGREEMENT FOR CAPITAL FACILITY CHARGES Page 5 FG:54353236.12 1454988.17 - 366922 -0029 Page 23 of 110 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). CREDIT AGREEMENT FOR CAPITAL FACILITY CHARGES Page 6 FG:54353236.12 1454988.17 - 366922 -0029 Page 24 of 110 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 Parry'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, CREDIT AGREEMENT FOR CAPITAL FACILITY CHARGES Page 7 FG:54353236.12 1454988.17 - 366922 -0029 Page 25 of 110 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 CREDIT AGREEMENT FOR CAPITAL FACILITY CHARGES Page 8 FG:54353236.12 1454988.17 - 366922 -0029 Page 26 of 110 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: Eric Campbell 12332 NE 1151h Place Kirkland, WA 98033 erickinsp groupllc. com Nick Tosti 805 Kirkland Avenue, Suite 200 Kirkland, WA 98033 nicktosti(&,,gmail. com CITY: 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. CREDIT AGREEMENT FOR CAPITAL FACILITY CHARGES Page 9 FG:54353236.12 1454988.17 - 366922 -0029 Page 27 of 110 Back to Agenda 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: APPROVED AS TO FORM: Patrick Schneider Attorney for McCormick Communities Mayor APPROVED AS TO FORM: Jennifer S. Robertson Attorney for Port Orchard ATTEST: Brandy Rinearson Port Orchard City Clerk CREDIT AGREEMENT FOR CAPITAL FACILITY CHARGES Page 10 FG:54353236.12 1454988.17 - 366922 -0029 Page 28 of 110 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: CREDIT AGREEMENT FOR CAPITAL FACILITY CHARGES Page 11 FG:54353236.12 1454988.17 - 366922 -0029 Page 29 of 110 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: CREDIT AGREEMENT FOR CAPITAL FACILITY CHARGES Page 12 FG:54353236.12 1454988.17 - 366922 -0029 Page 30 of 110 WA'AAAi'l lk McCormick Properties Page 31 of 110 Back to Agenda Name and Full Address �d�� S )�f�S✓�- 1 rL� f ) DOUG SKROBUT 201309160217 V Ui v� Agreement Rec Fee: $ 105.00 09/16/2013 02.42 PM Page: 1 of 34 Walter Washington, Kitsap Co Auditor Please print neatly or type information. Iililll ����I� III IIIII 1111111111111111111111111111111111111111 HIM 11111111111111111111111111 The AuditorAccorder wn1l rely on the information provided on the forth. The staff will not read the document to verify the accuracy or completeness of the indexing informations provided herein. Document Mde(s): f V @- ( Jr rk Ins Agee" Additional reference rs on page: Reference Number(s) of related documents: Grantor(s): Additional Grantors on Page: Grantee(s): Additional Grantee on Page: Legal Description (abbreviated form: i.e. Plat name, lot, block, section, township, range, quarter/quarter). AOVt of 12-3 6 , S L1 { () �L i F I -Al See Nl\jo— I S Assessor's Property Tax Parcel/Account Number: I, . am requesting an emergency nonstandard recording for an additional fee of $50.00 as provided in EW 36.18.010. I understand that the recording processing requirements may cover up or otherwise obscure some part of the text of the original document. Signature: J:\pubdocslletterslcover letter 09/2004 Page 32 of 110 Back to Agenda After Recording Please Return to: City Clerk City of Port Orchard 216 Prospect Street Port Orchard, WA 98366 DEVELOPMENT AGREEMENT for McCormick Woods Phases III, IV, and V Preliminary Plats THIS DEVELOPMENT AGREEMENT ("Agreement") is entered into between the City of Port Orchard, a Washington municipal corporation ("the City"), and GEM 1 LLC, a Washington limited liability company ("GEM 1"). RECITALS A. GEM 1 is the owner and developer of the McCormick Woods development, which is a portion of a larger area generally known as the McCormick Urban Village. The McCormick Woods development is generally located on the south side of Old Clifton Road, east of the Sunnyslope area and west of Glenwood Road. The McCormick Woods area in general, and the remaining undeveloped portions of McCormick Woods Preliminary Plats Phases III, IV, and V (collectively "The Property") are shown in the site plan attached as Appendix A. The legal description of The Property is attached as Appendix B. This Agreement applies to The Property. A summary of the Preliminary Plats Phases III, IV and V is attached as Appendix F. B. The McCormick Woods area, including The Property was annexed into the City of Port Orchard on July 8, 2009. C. Prior to the annexation, GEM 1 obtained Kitsap County's approval of a Sub -Area Plan (The McCormick Urban Village \ ULID #6 Sub -Area Plan) as well as Development Agreements for Transportation and Parks and Open Space, which regulate development of all of GEM I's developments in the Urban Growth Area, including The Property. In addition, GEM 1 obtained Kitsap County approval of a Master Plan for McCormick Woods, various Preliminary Page I of 12 Page 33 of 110 Back to Agenda Plats within McCormick Woods, and additional approvals for multiple Site Development Activity Permits for the development of portions of The Property. Those two Development Agreements and the approvals described in this paragraph remain in effect and binding upon GEM 1 and the City. D. The Property comprises the vast majority of the remaining development of the planned community of McCormick Woods. The McCormick Woods Preliminary Plats Phases III, IV, and V share common infrastructure such as roadways, storm water management control systems, and sewer and water infrastructure, open space, and parks \ recreation areas. In effect, the three phases act as one development area. The various phases and supporting common infrastructure have been designed in an integrated manner to function as a single development area. E. The City and GEM 1 recognize that GEM 1 has a vested right to develop The Property pursuant to the Kitsap County standards reflected in the Development Agreements and approvals described above. However, for a variety of reasons, both the City and GEM 1 believe it would be preferable to consolidate the further review of development plans for The Property using City permit procedures as modified or clarified in this Agreement. The City and GEM 1 also believe it would be preferable to complete the further review and development of The Property based on City of Port Orchard substantive standards, to the extent that use of such standards does not require significant redesign of the project. F. The City and GEM 1 desire to enter into a Development Agreement, as authorized by RCW 36.70B.170, which will establish procedures and standards for the further review and development of The Property. This Agreement is intended to set forth the uses that will be permitted on the Property, the development standards that will apply, the period of time within which the development standards will apply, and the method and manner in which it may be developed. Based on the foregoing considerations, the City of Port Orchard and GEM 1, LLC enter into the following Development Agreement. DEVELOPMENT AGREEMENT 1. Definitions: a. When used in this document, unless the context clearly indicates otherwise, the following words, when capitalized shall be defined as set forth in this paragraph. (1) "Adopting Ordinance" means the ordinance that approves this Development Agreement, as required by RCW 36.70B.200. (2) "Agreement" means this document, entitled Development Agreement. (3) "City" means the City of Port Orchard. Page 2 of 12 Page 34 of 110 (4) "Construction Standards" means the City adopted regulations governing construction standards and specifications, such as, but not limited to, the International Building Code, Uniform Plumbing Code, National Electric Code, the International Fire Code, the Uniform Code for the Abatement of Dangerous Buildings, and such other codes adopted by the City, with or without amendment. (5) "Development Standards" means the development requirements set forth in this Section 3 of this Agreement, and all of the regulations duly adopted by the City, either as a part of the Port Orchard Municipal Code, or adopted therein by reference, and any administrative regulations duly adopted by the City, that relate to the use, alteration or development of real property within the City. Development Standards does not include Construction Standards or the applicable fees in effect at such time as grading, building, or other applicable permit applications are submitted and deemed complete by the City. The term "Development Standards" will also include SEPA conditions imposed through the approval of this Development Agreement, which will also compile and consolidate previously imposed SEPA conditions from prior approvals that are still applicable. (6) "Effective Date" means the effective date of the Adopting Ordinance. (7) "GEM 1" means GEM 1, LLC the fee simple title holder of the Property, its successors or assigns. (8) "McCormick Woods Phases III, IV and V" or the "Property" means the real property within the City, assigned Kitsap County Assessor's tax parcel numbers 092301-1-003-2004, , 042301-4-029-2003, 092301-1-006-2001, 092301-1-005-2002, 092301-4-004-2007, 092301-1-009-2008, 092301-4-005-2006, 092301-4-003-2008, 092301-4-002-2009, 162301-1-021-2003, 162301-1-020-2004, 162301-1-019-2007, as depicted in Appendix A and legally described in Appendix B. The Property consists of approximately 369.68 acres and the proposed future use is residential. (9) "Vesting Date" refers to January 15, 2013, the date whichthe parties agree should be the date on which the Development Standards for the Property should be vested as described below.. (10) "Vested Development Standards" means the Development Standards in effect on the Vesting Date, except as modified by the requirements set forth in Section 3 of this Agreement. 2. Status of Land Use Applications: The City acknowledges and accepts the following status of land use approvals relating to the Property: a. Planning Parcels C-M. Planning Parcels C-M as depicted on the site plan attached as Appendix A (the "Site Plan"), are all the subject of preliminary plats approved by Page 3 of 12 Page 35 of 110 Kitsap County as McCormick Woods Phases III, IV and V. Those preliminary plats were approved in sequence, and there are some overlaps in the property included in the three plats. Further, the later plat approvals by Kitsap County modified certain elements approved with prior preliminary plats. The Site Plan represents a consolidation and clarification of all prior approvals for Planning Parcels C-M. The City hereby adopts and approves the Site Plan as the approved preliminary plat map for all of the development in Planning Parcels C-M. Final plats and other development approvals consistent with the Site Plan may occur consistent with this Development Agreement and with applicable provisions of the Port Orchard Municipal Code. b. Planning Parcels A and B. Planning Parcels A and B as depicted on the Site Plan are neither benefited nor restricted by this Development Agreement. Those properties are set aside for future development in accordance with then -applicable development regulations and other provisions of the City's Municipal Code, and are not governed by the terms and conditions of this Agreement. 3. Development Standards: All development and use of The Property, including all permitted land uses, shall be reviewed, approved and conditioned based exclusively on the Development Standards in effect on the Vesting Date, with the following changes: a. Minimum Residential Lot Size: The minimum residential lot size for the Property shall be 3,000 square feet. b. Sprinkler Requirements. Although the City currently requires that homes served by private roads be built with fire sprinkler systems, this requirement shall not apply to the private roads listed on Appendix E and E-1 as private roads and any other privates roads in The Property which are maintained by the homeowners association. However, if the City, at some future date, adopts an ordinance requiring sprinklers in all new single family residential units, that requirement shall apply to homes for which building permit applications are submitted after the effective date of the ordinance. C. Landscaping The City and County have different requirements for provisions of open spaces and landscaping. In order to maintain appearance and consistency and provide uniformity, the City and GEM 1 agree that the Property will be landscaped and developed in a manner consistent with the existing development. In order to accommodate this, development on lots within The Property shall be exempt from the provisions of the Port Orchard regulations POMC 16.50.130 and POMC 16.50.180 through 16.50.220, as now or hereafter amended, and shall instead meet the requirements of Kitsap County Code Chapter 17.385 as adopted on the Application Date. Appendix D is said Kitsap County Code Chapter 17.385 d. Final plat - Minor Modifications. McCormick Woods was designed and approved based on Kitsap County's system for approval of minor modifications to the preliminary plat during the final plat review and approval process. The parties recognize that the City's standards for distinguishing between minor modifications, which may be approved by the staff, and major modifications, which require re -review by the Hearing Examiner, are more stringent than the County's. During the final plat process for The Property, the City staff is authorized to permit Page 4 of 12 Page 36 of 110 minor modifications without the necessity of further review by the Hearing Examiner so long as the modification does not (1) increase the number of authorized homes, (2) increase traffic volumes above the volume contemplated, (3) require modification or alteration of a critical area or buffer that was not contemplated or as allowed by code for buffer averaging and/or reduction, (4) increase the volume or rate of discharge of stormwater above that contemplated by the preliminary/ final SDAP drainage plan or Vested Development Standards or (5) reduce the amount of open space or recreational facilities contemplated. e. Stormwater Management Standards. Stormwater management control standards for each development parcel within the Property are detailed in Appendix C, C-1, and C-2. There are three categories of stormwater control: • Existing stormwater management facilities utilize regional drainage control infrastructure facilities approved and constructed in accordance with the McCormick Woods Master Drainage Plan. These regional facilities will continue to be used for stormwater management within Phases III, IV, and V preliminary plats. • Facilities to be constructed but currently approved as part of existing land - use or site development permits. • New facilities not yet approved but to be constructed to the standards in effect on the Vesting Date. In order to implement this agreement, the City and GEM 1 agree that the following stormwater management facilities and facility design standards shall be deemed the stormwater management standards for development in The Property: (1) Areas draining to existing Master Drainage Plan regional facilities may drain to those facilities without any additional water quantity control improvements. Water quality treatment facilities shall be provided for any new development in these areas through new water quality improvements or BMP's consistent with City of Port Orchard Standards in effect on the Vesting Date. (2) Areas draining to Stormwater management facilities that have site development activity permits in effect as of the Vesting Date may utilize those facilities as they have been permitted without further modification. (3) Areas draining to receiving waters with no existing facilities or approved site development permits shall have new stormwater control facilities meeting City standards in effect on the Vesting Date. f. Road Cross Sections. Road sections shown in Phases III, IV, and V are designed to be consistent with the existing road infrastructure in the McCormick Woods development in order to provide uniformity of appearance and consistency. The roads will be public and will be owned and maintained by the City, with the exception of the private access tracts. The road names and corresponding road cross sections are shown in Appendix E and El. Page 5 of 12 Page 37 of 110 Back to Agenda (1) Road Sections 1 through 3 are the approved sections for St Andrews Drive SW, a future dedicated public Right -of -Way. (2) Road Section 4 is the approved section for Hawkstone Avenue SW, a connector road between St. Andrews Drive SW and Hawkstone Avenue SW. (3) Road Sections 5 through 7 are the main access roads throughout The Property. h. Zoning and Uses. Future development in The Property shall be subject to the underlying City Zoning designation and associated land use codes and development regulations in Port Orchard Municipal Code in effect on the Vesting Date. 4. Term of Agreement. a. Because the completion of The Property is expected to take considerably longer than the development of a single plat and because the City of Port Orchard and GEM 1 all desire that these properties be developed in a coordinated manner, including regional storm water treatment, the vesting of Development Standards shall be valid for a period of fifteen years from the Effective Date unless extended or terminated as provided herein. The City may grant a single five year extension if requested by GEM 1 and if the City finds that GEM 1 has made a reasonable effort to complete the final plat process, recognizing that the timing of development is dependent on market conditions, the availability of financing and various other factors beyond the control of the parties to this Agreement. Any further amendment of the Agreement requires approval by both parties in the same manner and a new Development Agreement. Final plat approval may be granted for portions of The Property, provided such final plat recording for all of the Property shall occur within the time periods established by this Section. b. The City acknowledges the following Site Development Permits covering portions of the Property were issued by The City: SDAP # PW12 00447, and SDAP # PW 09- 00220. These two permits are for various projects designed to implement the coordinated development and implementation of the regional storm water treatment and/or regional roadways and a soils management site. In that these plans cover large areas and regional type improvements, it is expected that the development could take longer than the development of a single individual plat. Therefore, the above listed permits shall be valid for a period of seven years from the Effective Date. Notwithstanding any other provision of this Agreement, any work covered by these Site Development Permits shall be governed exclusively by the permits and the code provisions under which they were issued, and that work shall not be subject to any other standards, codes or regulations. 5. Phasing. GEM 1 shall be allowed to develop the property in phases, with the phases being allowed to occur in such sequence as GEM 1 deems necessary in order to meet economic demands. Provided, however, GEM 1 must complete in each phase the improvements that are determined necessary by the City to adequately protect the public health and safety with regards to Page 6 of 12 Page 38 of 110 pedestrian and traffic circulation, emergency access, stormwater management, and utilities as they relate to the proposed phase. 6. Default. No party shall be in default under this Agreement unless it has failed to perform following written notice of default from the other party. Notice of default shall allow the defaulting party thirty (30) days to cure or commence cure where thirty (30) days is insufficient for a complete cure. Each notice of default shall specify the nature of the alleged fault and the manner in which the default may be cured satisfactorily. 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 matter set forth in the notice, the other parry to this Agreement may, at its option, institute legal proceedings pursuant to this Agreement. A parry not in default under this Agreement shall have all rights and remedies provided by law or equity, including without limitation: issuance of a stop work order, injunction, damages, action for specific performance, or to require action consistent with this Agreement. Nothing herein will operate to prevent either party from taking legal action regarding noncompliance that threatens public health, safety or welfare prior to the expiration of the thirty (30) day cure period following notice of default. No such action or preceding will operate to automatically terminate this Agreement, nor shall it release either party from any promise or obligation herein nor shall it release either party from any liability or obligation with respect to any breach of this Agreement occurring prior to the commencement of any legal action by a ply. 7. Termination. This Agreement shall expire and/or terminate as provided below: a. This Agreement shall terminate upon the expiration of the term identified in Section 4 or when the Property has been fully developed, which ever first occurs, and all of the GEM 1's obligations in connection therewith are satisfied as reasonably determined by the City. b. This Agreement shall terminate and be of no further force and effect as to any single-family residence, any other residential dwelling unit, or any non-residential building and the lot or parcel upon which such residence or building is located, when it has been approved by the City for occupancy. 8. Effect of Termination. a. Termination of this Agreement as to GEM 1 and the Property, or any portion thereof, shall not affect any of GEM 1's obligations to comply with the City's Comprehensive Plan and the terms and conditions or any applicable zoning code(s) or subdivision map or other land use entitlements approved with respect to the Property, any other conditions of any other development specified in the Agreement to continue after the termination of this Agreement or obligations to pay assessments, liens, fees, or taxes. b. Upon termination of this Agreement, the entitlements, conditions of development, limitations on fees and all other terms and conditions of this Agreement shall no longer be vested hereby with respect to the Property, or any portion thereof; provided, however, that vesting of Page 7 of 12 Page 39 of 110 such entitlements, conditions, or fees may then be established for such property pursuant to then existing planning and zoning laws. 9. Notices. All notices required by this Agreement shall be deemed delivered to the respective party on the date that it is personally delivered to the address (es) set forth below, or on the date that it is successfully sent by facsimile transmission to the facsimile number(s) set forth below: City: City Development Director 216 Prospect Street Port Orchard, WA 98366 Phone: 360-876-4991 Facsimile: 3 60-876-4980 With a copy to: Gregory A. Jacoby City Attorney P.O. Box 1317 Tacoma, WA 98401 Phone: 253-627-1181 Facsimile: 25 3 -627-2247 GEM 1 Doug Skrobut McCormick Land Company 4978 SW Lake Flora Road Port Orchard, WA 98367 Phone: 360-876-3395 Facsimile: 360-876-3511 With a copy to: LA/-►t� Co^-A.PAr-3 K MA,4A4EA-, GE C e-t-c- <g<kSCD CAL- D4, Sv.\-rE 2-0 % cA gs62,g 10. Reimbursement for Agreement Expenses of the City. GEM 1 agrees to reimburse the City for actual expenses incurred over and above fees paid by GEM 1 as an applicant incurred by City directly relating to this Agreement, including recording fees, publishing fees, and reasonable consulting and legal fees not otherwise included within application fees. This Agreement shall not take effect until the fees provided for in this section are paid to the City. 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 GEM 1. Page 8 of 12 Page 40 of 110 11. Amendments. No change or modification of this Agreement shall be valid unless the same is in writing and is signed by authorized representatives of the City and GEM 1. Provided, that any such amendment shall follow the process established by law for the adoption of a development agreement, as set forth in RCW 36.7013.200. No purported or alleged waiver of any of the provisions of this Agreement shall be binding or effective unless in writing and signed by the party against whom it is sought to be enforced. 12. Serious Threat to Public Health and Safety. Pursuant to RCW 36.70B.170(4), the City reserves the authority to impose new or different regulations affecting the Property, including but not limited to amendments to the Comprehensive Plan, Zoning Code, Official Zoning Map, or development regulations, to the extent required by a serious threat to public health and safety. 13. Recording; Binding Effect; Assignment. This Agreement and any subsequent amendments thereto shall be recorded with the Kitsap County Auditor. GEM 1 shall be responsible for the cost of recording this Agreement and any subsequent amendments thereto. The rights, obligations, conditions and interests set forth in this Agreement shall run with the land and shall inure to the benefit of and be binding upon GEM 1, and its heirs, personal representatives, successors and assigns and shall benefit the properties described in Appendix B. GEM 1 shall have the right to convey, assign, apportion or otherwise transfer any and all of its rights, obligations, conditions, and interests under this Agreement. Provided, however, thirty (30) days in advance of the effective date of GEM 1's conveyance, assignment, apportionment, or other transfer of its rights under this Agreement, GEM 1 must provide notice to the City of the same. 14. Relationship of the Parties. Notwithstanding any other provision of this Agreement, or any other agreements, contracts, or obligations which may derive herefrom, nothing herein shall be construed to make the City or GEM 1 partners or joint venturers, or to render any other parties liable for any of the debts or obligations of the other parties, it being the intention of this Agreement merely to create the agreements set forth herein. 15. Third Party Legal Challenge. In the event any legal action or special proceeding is commenced by any person or entity other than a party to this Agreement, and a party's successor or assigns, to challenge this Agreement or any provision herein, the City may elect to tender the defense of such lawsuit or individual claims in the lawsuit to GEM 1 and its successors or assigns. In such event, GEM 1 and its successors or assigns shall hold the City harmless from and defend the City from all costs and expenses incurred in the defense of such lawsuit or individual claims in the lawsuit, including but not limited to attorney's fees and expenses of litigation, and damages awarded to the prevailing Page 9 of 12 Page 41 of 110 Back to Agenda party or parties in such litigation. GEM 1 and its successors or assigns shall not settle any lawsuit without the consent of the City. The City shall act in good faith and shall not unreasonably withhold consent to settle. 16. Specific Performance. The parties specifically agree that damages are not an adequate remedy for breach of this Agreement, and that the parties are entitled to compel specific performance of all material terms of this Agreement by any party in default thereof. 17. No Third Party Beneficiaries. This Agreement is made and entered into for the sole protection and benefit of the parties hereto and their successors and assigns. No other person shall have any right of action based upon any provision of this Agreement. 18. Applicable Law and Venue. This Agreement shall be governed by and construed in accordance with the laws of the State of Washington. Any action with respect to this Development Agreement shall be brought in Kitsap County Superior Court, Port Orchard, Washington. 19. Multiple Originals. This Agreement may be executed in multiple copies, each of which shall be deemed an original. 20. Entire Agreement; Construction. This Agreement constitutes the entire agreement of the parties and incorporates all prior discussions and agreements. The captions throughout this Agreement are for convenience and reference only and the words contained in them shall not be held to expand, modify, amplify or aid in the interpretation, construction or meaning of this Agreement. All parties hereto have been represented by legal counsel and accordingly hereby waive the general rule of construction that an agreement shall be construed against its drafter. 21. Attorney's Fees. In the event that any party to this Agreement brings a lawsuit against any other party in order to enforce any provision of this Agreement or to redress any breach thereof, the prevailing party in any such lawsuit shall be entitled to recover its costs and reasonable attorney's fees in addition to any other available remedy. Page 10 of 12 Page 42 of 110 IN WITNESS WHEREOF, this Agreement was executed by the parties on the dates hereinafter indicated. CITY OF PORT ORCHARD By Tim Matthes, Mayor ppRT oaP oq Rcy% a . Gq�, 9 ATTEST: 0 Y �'•� City kJer• • • �, APPROVED AS TO FORM: By Gregory A. J my, City �Yorney STATE OF WASHINGTON ) ss. COUNTY OF KITSAP ) GEM 1 /LLC By ( �--@- Its Michael F. McKeman PRESIDENT GRANITE LAND COMPANY I certify that I know of have satisfactory evidence that 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 acknowledge it as the of GEM 1, LLC to be the fee and voluntary act of such party for the purposes mentioned in the instrument. SUBSCRIBED AND SWORN to before me this day of 20_ STATE OF WASHINGTON ) NOTARY PUBLIC in and for the State of Washington, residing at My appointment expires: Page 11 of 12 Page 43 of 110 Back to Agenda ss. COUNTY OF KITSAP I certify that I know of have satisfactory evidence that Tim Matthes 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 acknowledge it as the Mayor of the City of Port Orchard to be the fee and voluntary act of such party for the purposes mentioned in the instrument. SUBSCRIBED AND SWORN to before me this 7 day o f k9-nt-2013. E F1 O �A OTARY PUBLIC in for the State of �AOTARY N'• lashington, residing at ) N PUBLIC = My appointment expires: 11 I'll) AS\A I Page 12 of 12 Page 44 of 110 Back to Agenda ACKNOWLEDGMENT State of California County of Sacramento On September 12, 2013 before me, Judy L McCurry, Notary Public (insert name and title of the officer) personally appeared Michael McKernan who proved to me on the basis of satisfactory evidence to be the person(s) whose name(s) is/are subscribed to the within instrument and acknowledged to me that he/she/they executed the same in his/her/their authorized capacity(ies), and that by his/her/their signature(s) on the instrument the person(s), or the entity upon behalf of which the person(s) acted, executed the instrument. I certify under PENALTY OF PERJURY under the laws of the State of California that the foregoing paragraph is true and correct. WITNESS my hand and official seal. Signatu (Se U DY L. MCCURRY _ A Commission #t 1994440 4 ,Ps Notary Public - California c -a` y z`- My Comm. Expires Oct 19, 2016 Z Sacramento County Page 45 of 110 Back to Agenda Page 46 of 110 Back to Agenda APPENDIX B April 24, 2013 LEGAL DESCRIPTION FOR GEM1, L.L.C. AMENDMENT TO MCCORMICK WOODS PHASES III, IV, & V PRELIMINARY PLATS Those portions of the South half of the Southeast quarter and the South half of the Southwest quarter of Section 4, and the Northwest quarter, the Northeast quarter, the Southeast quarter and the East half of the Southwest quarter of Section 9, and the West half of the Northeast quarter of Section 16, all in Township 23 North, Range 1 East, Willamette Meridian, described as follows: Parcel A of Boundary Line Adjustment Recorded under Auditor's File Number 200512300304, Records of Kitsap County, Washington. EXCEPT that portion of the South half of the Southwest quarter of Section 4 and the North half of the Northwest quarter of Section 9, Township 23 North, Range 1 East, W.M., and of Tract "D" Second Amended Plat of McCormick Woods, according to the plat thereof, recorded in Volume 26 of Plats, Pages 189 through 196, inclusive, records of Kitsap County, Washington described as follows: Beginning at the most Northerly corner of said Tract "D", Second Amended Plat of McCormick Woods, according to Plat thereof, recorded in Volume 26 of Plats, Pages 189 through 196, inclusive, Records of Kitsap County, Washington: Thence S 1005318" W, along the West line of said Tract, a distance of 80.02 feet to a point on the Northerly right of way margin of the McCormick Woods Loop Road per deed recorded under Auditors File No. 9407220144, said point being on the arc of a curve, the center of which bears S 79°06'42" E; Thence Southeasterly along said Northerly right-of-way margin, along the arc of a curve to the left said curve having a radius of 25.00 feet, though a central angle of 90000'00" a distance of 39.27 feet; Thence S 79006'42" E continuing along said Northerly right-of-way margin a distance of 13.79 feet to a point of curve; Thence continuing along said Northerly right-of-way margin, along the arc of a curve to the left said curve having a radius of 445.00 feet, through a central angle of 13052'14," a distance of 107.73 feet to a point of compound curve, said point being on the Northerly right of way margin of the McCormick Woods Loop Road per deed recorded under Auditors File No. 3204706; Thence Easterly along said Northerly margin, and along the arc of a curve to the left, said 12161GEM1114-X-1135.0.00C Prepared by: Page 1of3 Q GOLDSMITH Checked by: MW LAND DEVELOPMENT SERVICES Page 47 of 110 Back to Agenda curve having a radius of 783.23 feet, through a central angle of 33°52'14" a distance of 463.01 feet to an angle point of said margin and of the Northerly right of way margin of the McCormick Woods Loop Road per deed recorded under Auditors File No. 200608070089; Thence N 53008'50" E along said Northerly margin a distance of 92.02 feet; Thence N 10058'28" W, departing said Northerly margin, a distance of 89.04 feet; Thence N 02059'52" W a distance of 118.74 feet; Thence N 19038'00" E a distance of 66.06 feet; Thence N 39004'54" E a distance of 80.98 feet; Thence N 23046'00" E a distance of 174.74 feet; Thence S 84'52'10" E a distance of 236.10 feet to a point on the boundary of a parcel of land conveyed to the City of Port Orchard under Auditor's File No. 3135714, and a point on the arc of a curve, the center of which bears S 70033'02" E; Thence Northeasterly, along the Westerly line of said parcel, along the arc of a curve to the right, said curve having a radius of 100.00 feet, through a central angle of 23D23'55" a distance of 40.84 feet to a point on the West line of Parcel "B" of Kitsap County Declaration of Boundary Line Adjustment as recorded under Recording Number 200506170388; Thence N 59°39'52" W, along said West line, a distance of 183.98 feet; Thence N 05'41'16" W continuing along said West line a distance of 187.66 feet; Thence N 47155'36" W continuing along said West line a distance of 26.83 feet; Thence N.86°37'44" W continuing along said West line a distance of 25.13 feet; Thence N 0604723" W continuing along said West line a distance of 392.67 feet to the Southerly right-of-way margin of Old Clifton Road; Thence S 63'08'19" W, along said margin, a distance of 584.37 feet to the Easterly right of way margin of McCormick Woods Dr. S.W. as established by said Second Amended Plat of McCormick Woods; Thence continuing along said Easterly margin the following courses and distances: S 58°28'57" W a distance of 262.29 feet to a point of curve; Southerly along the arc of a curve to the left, said curve having a radius of 50.00 feet, through a central angle of 77D48'57" a distance of 67.91 feet; S 19020'00" E a distance of 12.82 feet to a point of curve; Southerly along the arc of a curve to the right, said curve having a radius of 890.00 feet, through a central angle of 01 021'20" a distance of 21.06 feet; S 09°07'39" E on a non -tangent bearing a distance of 104.53 feet to a point of curve, the center of which bears S 78°45'46" W; Southerly along the arc of a curve to the right, said curve having a radius of 880.00 feet, through a central angle of 07028'50" a distance of 114.89 feet; S 03045'24" E a distance of 269.44 feet to a point of curve; Southerly along the arc of a curve to the right, said curve having a radius of 880.00 feet, through a central angle of 14038'42" a distance of 224.93 feet; S 10115318" W a distance of 85.78 feet to the Point of Beginning. AND EXCEPT that portion thereof granted to Kitsap County for Right -of -Way by Deed Recorded under Auditor's File Number 200608070089, Records of Kitsap County, Washington. AND TOGETHER WITH Lot A of Boundary Line Adjustment Recorded under Auditor's File Number 200711060175, Records of Kitsap County, Washington. 12161GEM1 1 14-X-1 135-O.DOC Prepared by: Page2of3 GOLDSMITH Checked by: LAND DEVELOPMENT SERVICES Page 48 of 110 Back to Agenda AND TOGETHER WITH Parcel 1, Parcel 2, Parcel, 3, Parcel 4, Parcel 6, Parcel 7, Parcel 8 and Parcel 10 all of the 20 Acre Land Segregation Recorded under Auditor's File Number 200612270418, Records of Kitsap County, Washington, AND TOGETHER WITH Parcel 5, of the 20 Acre Land Segregation Recorded under Auditor's File Number 200612270418, Records of Kitsap County, Washington. EXCEPT that portion thereof granted to Kitsap County for Detention Pond Recorded under Auditor's File Number 200610090200, Records of Kitsap County, Washington. AND TOGETHER WITH Lot B of Boundary Line Adjustment Recorded under Auditor's File Number200811100041, Records of Kitsap County, Washington. 12161GEM1114Prepared by: X-1135 O.DOC GOLDSMITH Page 3 of 3 D Checked by: `�' LAND DEVELOPMENT SERVICES Page 49 of 110 Back to Agenda APPENDIX C MCCORMICK WOODS PHASES III, IV, AND V PRELIMINARY PLATS Stormwater Management Control Plan Facilities Matrix August 19, 2013 Parcel Number Parcel Storitiwatelr Management Control Plan Facilities ID of Lots. Size C 48 13.58 Ac ■ Stormwater Control Facility #40 - Existing Master Drainage Plan Facility ■ Water Quality standards in effect on Plat Amendment Application Date applied to two (2) proposed facilities Parcel C- East Pond and C-West Pond. . D 172 72.65 Ac ■ Currently Approved Stormwater Control Facility RC-8 and Phase V Division 1 Pond. E 55 28.08 Ac ■ Currently Approved Stormwater Control and Water Quality Control Facility for Parcel E Pond. F 45 21.15 Ac ■ Currently Approved Stormwater Control Facility RC-3N H 42 27.56 Ac ■ Currently Approved Stormwater Control Facility for a portion of the site - Facility RC-3N J 30 50.45 Ac ■ Currently Approved Stormwater Control Facility RC-3N K 7 11.24 Ac ■ Existing Stormwater Control Facility— Existing Master Drainage Plan Facility RC- 3 L 34 50.12 Ac ■ Currently Approved Stormwater Control Facility RC-5 and Existing Pond A and Pond B (associated with the McCormick Woods Drive SW extension connector road / constructed facilities). M 13.94 Ac Existing Stormwater Control Facilities Pond A and Pond B Soils Management Site & Future Open Space M 92 71.86 Ac Water Quality and Water Quantity Standards in effect on Plat Amendment Application Date and Existing Stormwater Control Facility Pond A. TOTAL LOTS = 525 Appendix C Stormwater Control Plan Facilities matrix Updated 081913.doc is GOLDSMITH LAND DEVELOPMENT SERVICES Page 50 of 110 Back to Agenda Page 51 of 110 Back to Agenda APPROVED- RC-5 POND RC-3N POND �,nC-3XISTING POND 7 rraam uaE� AT McC64U1L1: � � EXISTING l\ POND B EXISTING', , POND A�j A I`•.O•• D LEGEND STORMWATER CONTROL FAQLTTY IK N�Ih APPROVED I CONSTRUCTED FLOW CONTROL DESIGNED PER MCCORMICK WOODS MASTER DRAINAGE PLAN. WATER QUALITY TREATMENT DESIGNED TO THE 2005 DOE SWMM FOR WESTERN WASHINGTON AS ADOPTED SYTHE COPO. FLOW CONTROL AND WATER QUALITY TREATMENT DESIGNED TO THE 2005 DOE SWMM FOR WESTERN WASHINGTON AS ADOPTED BY THE COPO. STORMWATER MANAGMENT CONTROL FACILITIES PLAN ® FOR GOLDSMITH MCCORMICK WOODS PHASES III, IV AND V PRELIMINARY C- LAN5 DEVELOPMENT SERVICES Page 52 of 110 Back to Agenda APPENDIX D MCCORMICK WOODS PHASES III, IV AND V PRELIMINARY PLATS KITSAP COUNTY CODE —CHAPTER 17.385 — LANDSCAPING August 20, 2013 Chapter 17.385 LANDSCAPING Sections: 17.385.010 Purpose. 17.385.020 Landscape plans. 17.385.025 Landscaping requirements. 17.385.027 Buffer types — When required. 17.385.030 Installation and maintenance. 17.385.040 Drought -tolerant landscaping. 17.385.050 (Repealed) 17.385.060 Building facade plantings. 17.385.070 Slope plantings. 17.385.080 Community themes. 17.385.010 Purpose. This section shall establish landscaping standards for all development subject to the requirements for permitted, conditional use or performance based development. Single- family plats shall be exempt, except that landscaping required as a condition of plat approval shall be installed to specifications contained herein. (Ord. 415 (2008) § 161, 2008: Ord. 367 (2006) § 106, 2006: Ord. 216 (1998) § 4 (part), 1998) 17.385.020 Landscape plans. Landscape plans required for an application shall be prepared as set forth in this section. Final APPENDIX D - Landscaping 081913.doc Page 1 of 7 Page 53 of 110 Back to Agenda A. Landscape plans are to be neatly and accurately drawn, at a scale that will enable ready identification and recognition of information presented. B. The landscape plan shall show how all disturbed areas are to be replanted (where landscaping is required) including the location and variety of all trees, shrubs and ground cover. C. The plan shall be accompanied by a plant schedule (list of plant materials used) which depicts the botanical name, common name, size at installation and spacing between individual plants shown on the plan. D. All plans shall include the following notations: 1. Plant quantities to be determined by required spacing. 2. All planting beds are to receive ground cover throughout except as noted. E. The landscape plan shall depict areas to be retained in natural vegetation and marked with the words "Native Growth Protection Easement, Existing Native Vegetation to Remain" and refer to the following notation, which is to be included on the landscape and site plans, or in the case of subdivisions, the final plat document. The "Native Growth Protection Easement Note" is intended to protect a sensitive area or provide and preserve a vegetated buffer by means of restricting activities which affect the vegetation existing in that area. The statement, "Existing Native Vegetation to Remain" is intended to differentiate between native vegetation and naturalized, non-native vegetation which naturally occurs through reseeding. Native vegetation is that which has existed in the region and was not introduced to the area by people. Examples include; Douglas fir, Salal and Alder. Naturalized vegetation is a species that was introduced to the area and has spread to the extent that it occurs and propagates itself without being directly planted by people. Examples include: Scotch Broom, Himalaya Blackberry and Purple Loosestrife. (Ord. 216 (1998) § 4 (part), 1998) 17.385.025 Landscaping requirements. In all cases where landscaping is required, a minimum of fifteen percent of the total site area shall be landscaped to the standards set forth in Chapter 17.385. (Ord. 216 (1998) § 4 (part), 1998) 17.385.027 Buffer types - When required. The director may require different buffer types depending on the proposed use of the site and adjacent zones and/or uses. These types shall include: A. Landscaping Buffer. Final APPENDIX D - Landscaping 081913.doc Page 2 of 7 Page 54 of 110 Back to Agenda 1. Required along existing or planned roads within urban growth areas. The planting area shall encompass the required front setback area and consist of: a. Evergreen and/or deciduous trees; b. Evergreen shrubs planted to screen parking areas, in an amount and configuration to screen parked cars; c. Ground covers as required; d. Bioswales and other drainage features are allowed, only when in a configuration that preserves the integrity of the roadside planting; and e. Retention of natural vegetation, where feasible. 2. Required along the perimeters of multi -family residential (ten dwelling units an acre or more), commercial, and industrial/business center development which abut like zones or uses. Installation shall vary in numbers and types of vegetation and structures depending on the proposed use and surrounding zones. Trees, shrubs, ground covers and/or fencing are to be provided as required. B. Screening Buffer. 1. Required along the perimeters of multi -family residential (ten dwelling units an acre or more), commercial, and industrial/business center development abutting different uses and/or zones. The buffer shall provide sight -obscuring screening between different uses or zones and shall consist of: a. Two offset rows of evergreen trees planted ten feet on center and ground cover; or b. A six-foot screening fence and a single row of evergreen trees planted ten feet on center, and ground cover. 2. Required for residential subdivisions or commercial development abutting a rural zone, a buffer of twenty-five to fifty feet of sight -obscuring, screening vegetation shall be provided. The director may modify this requirement after evaluating the effects of wind - throw or other safety concerns. In the event that the buffer will only contain high - branching trees which allow visibility through the buffer, a row of evergreen trees planted ten feet on center may be required along the highest point of the buffer. 3. Required around the perimeter of storm drainage facilities to provide sight -obscuring screening from adjacent properties and/or roadways, and consist of: a. A row of large shrubs and ground cover; b. A row of evergreen trees planted ten feet on center and ground cover; and/or c. An evergreen vegetation buffer sufficient to provide screening. Final APPENDIX D - Landscaping 081913.doc Page 3 of Page 55 of 110 Back to Agenda 4. Retention of screening vegetation, where feasible. 5. Other vegetation types and/or configurations that meet the intent of this screening buffer may be approved by the director. (Ord. 415 (2008) § 162, 2008) 17.385.030 Installation and maintenance. Installation and maintenance of landscaping of developments shall be in accordance with the American Nursery Landscaping Association standards. A. Plant materials shall be nursery stock or the equivalent quality and installed to industry standards or better. B. Landscape plant materials shall be staked to current industry standards or better. Stakes and guy wires shall not interfere with vehicular or pedestrian traffic. C. Minimum Sizes at Installation. 1. Two-inch caliper street trees and other deciduous trees; 2. Eight feet minimum height multi -stemmed trees (e.g., Vine Maple); 3. Six feet minimum height coniferous trees; 4. Eighteen to twenty-four inches height for large and medium shrubs (over six feet at maturity); 5. Twelve to eighteen inches minimum height for small shrubs (three to six feet at maturity); and 6. Drought -tolerant landscape areas shall be subject to the size requirements in Section 17.385.040. D. Maximum spacing: 1. Street trees and other deciduous trees shall be spaced appropriate to their pattern, generally twenty-five to thirty feet on center for large trees. 2. Coniferous trees shall be spaced fifteen feet apart, unless they are within a screening buffer, where the maximum spacing shall be ten feet on center. 3. Large shrubs shall be spaced five feet on center. 4. Medium shrubs shall be spaced four feet on center. 5. Small shrubs shall be spaced three feet on center. Final APPENDIX D - Landscaping 081913.doc Page 4 of 7 Page 56 of 110 Back to Agenda E. Ground covers (bark and mulch shall not be considered as ground cover) are required in all planting areas, unless the entire bed is planted with shrubs that branch out so that they cover the surface of the ground. Spacing shall be as follows: 1. One -gallon pots, twenty-four inches on center; 2. Four -inch pots, eighteen inches on center; 3. Two -and -one -quarter -inch pots, twelve inches on center; and 4. Grass and sod areas to be one hundred percent. F. Vegetation removal in native growth protection easements is limited to the following cases: 1. Hand removal of naturalized species. No machinery is to be used, except for hand-held implements which do not disturb the native vegetation or soil; 2. Falling of trees which may present a danger to life or property. Removal of said trees is to be done only with written approval from the county. To solicit said approval, a letter and photograph or detailed plot plan of the area, with all trees to be removed marked on the photo or plan, shall be submitted to the department of community development; and 3. Other activities expressly allowed as a condition of approval. G. Slopes in landscape areas shall not exceed 3:1 unless specifically approved by the director. Erosion control netting or alternative procedure may be required for slopes exceeding 3:1. H. Automatic irrigation systems shall be required for all landscape areas except for those designed and approved as drought -tolerant plantings. In unique circumstances alternative methods of irrigation may be approved if specifically proposed as part of the landscape plan. I. All planting beds shall receive topsoil or soil amendments as needed to maintain the plants in a thriving condition. J. All planting beds shall receive a minimum of two inches of bark mulch, or approved substitute. K. Landscaping required under the provisions of this title shall be maintained in a healthy growing condition. L. Landscaping lost due to violations of this title or unforeseen natural events shall be replaced immediately with vegetation that is sufficient in size and spacing as required by this title. Final APPENDIX D - Landscaping 081913.doc Page 5 of 7 Page 57 of 110 Back to Agenda M. All landscaping required by this title shall be installed prior to the issuance of any final certificate of occupancy permit, unless specifically approved by the director and installation is bonded (or other method), for a period not to exceed six months, in an amount equal to one hundred fifty percent of the cost of material and labor. N. Wetland mitigation plantings are not considered to be a part of the landscaping requirements. (Ord. 415 (2008) § 163, 2008: Ord. 216 (1998) § 4 (part), 1998) 17.385.040 Drought -tolerant landscaping. Drought -tolerant landscaping (xeriscaping) is encouraged as a means of reducing the amount of water use. Xeriscaping reduces maintenance costs by reducing the amount of water used and by avoiding long-term maintenance of an irrigation system. Xeriscaping is especially encouraged on large sites and in those parts of a site separated from public streets and walkways. Drought -tolerant landscaping shall be installed and maintained as set forth in this section. A. There shall be provisions made for irrigation in the first two years following planting. This may include a temporary sprinkler system, or an approved means of manual irrigation. Manual irrigation methods shall be detailed in a written plan, included as a note on the landscape plan and accompanied by a maintenance bond in an amount determined by the director. B. Minimum sizes at installation: 1. One -and -one -half -inch caliper deciduous trees; 2. Four -foot minimum height multi -stem trees; 3. Four -foot minimum height coniferous trees; 4. Twelve inches minimum height for medium and large shrubs; and 5. One -gallon pot size for small shrubs. C. Ground cover is required as in Section 17.385.030(E). D. All plants selected shall be species generally accepted as drought -tolerant in the industry as drought -tolerant varieties.* (Ord. 216 (1998) § 4 (part), 1998) * Editor's Note: The list of drought -tolerant plants for landscaping may be obtained from the department of community development. 17.385.050 (Repealed)* Final APPENDIX D - Landscaping 081913.doc Page 6 of 7 Page 58 of 110 Back to Agenda * Editor's Note: Former Section 17.385.050. "Landscape -buffer types," was repealed by § 164 of Ord. 415 (2008). Section 4 (part) of Ord. 216 (1998) was formerly codified in this section. 17.385.060 Building facade plantings. Building facade plantings are intended to provide visual relief for buildings and shall be required adjacent to all building walls except those adjacent to service areas or unless specifically exempted by the director. Building facade plantings shall be provided over two thirds (or greater) of the horizontal distance of the wall and consist of. - A. A minimum four -foot -wide planting area containing shrubs and ground cover; and B. Trees within the planting area, or within tree gates set into a walkway, when determined necessary. (Ord. 415 (2008) § 165, 2008: Ord. 216 (1998) § 4 (part), 1998) 17.385.070 Slope plantings. Slope plantings are intended to re -vegetate slopes (which do not require planting as any other required buffer) and shall consist of a mixture of plantings and seedling trees planted at an average spacing of ten feet on center. This shall not reduce the need for hydro - seeding required for erosion control or other purposes. (Ord. 216 (1998) § 4 (part), 1998) 17.385.080 Community themes. Certain areas may have preferred planting schemes due to a community plan or other adopted design theme. Required landscape areas shall utilize plant materials and design concepts consistent with the local plan. (Ord. 216 (1998) § 4 (part), 1998) Final APPENDIX D - Landscaping 081913.doc Page 7 of 7 Page 59 of 110 Back to Agenda McCORMICK WOODS DEVELOPMENT AGREEMENT ROAD SECTIONS 11-27-2012 XI APPENDIX D-1 I I (B GOLDSMITH LAND DEVELOPMENT SERVICES a U 0 J W d W W Lu Lu U_ Z Qo Z Uin a F _1 � J v PAGE 1 of 3 Page 60 of 110 Back to Agenda McCORM1CK WOODS DEVELOPMENT AGREEMENT ROAD SECTIONS iW 11-27-2012 . x o� APPENDIX D-1 Y xU W W LLF I LO V N M GOLDSMITH LAND DEVELOPMENT SERVICES U 0 zz II F Z W m i Isla p o �Q� 10 Iml �_ W w WZ Z PAGE 2 of 3 Page 61 of 110 Back to Agenda McCORMICK WOODS DEVELOPMENT AGREEMENT ROAD SECTIONS 11-27-2012 APPENDIX D-1 O Y HOT -MIX ASPHALT —� CONCRETE PAVEMENT 4' COMPACTED DEPTH. CRUSHED SURFACING TOP COURSE 1@1 0 WALK n' n' IS' THICKENED FlNISNED ORABE IV THICKENED EDGE ELEVATION EDGE PDX t08 D,s B' NOT MIX ASPHALT CONCRETE PAVEMENT V COMPACTED DEPTH CRUSHED SURFACING TOP COURSE B` COMPACTED DEPTH CLASS'S' GRAVEL BASE TYPICAL 40' ROAD SECTION (PUBLIC) NOT TO SCALE SO' PRIVATE ROAD IS' 1IS' La THICKENED EDGE CURB ITTP•I POs I zo_ t �E' CLASS HOT MIX ASPHALT (RUA) PAVBIG • COMPT, DEPTH CRUSHED SURFACING TGP COURSE e` COMPT. DEPTH GRAVEL BASE OR AS DIRECTED BY ENGINEER TYPICAL 30' ROAD SECTION (PUBLIC) NOTTO SCALE SO' ENT WIDTH VARIES I I 2.Gi 1 I E' CLASS'B` ASPHALT CONCRETE PAVEMENT S' e COMPT. DEPTH CRUSHED SURFACING 3' THICKENED EDGE TOP COURSE B' COMPT. DEPTH CLASS'S' GRAVEL BASE TYPICAL 30' ROAD SECTION/ACCESS TRACT (PRIVATE) GOLDSMITH LAND DEVELOPMENT SERVICES NOTTO SCALE PAGE 3 of 3 Page 62 of 110 Back to Agenda APPENDIX E MCCORMICK WOODS PHASES III, IV, AND V PRELIMINARY PLATS Road Names and Associated Road Sections August 19, 2013 ROAD NAME ST. ANDREWS DRIVE SW ST. ANDREWS DRIVE SW ST. ANDREWS DRIVE SW HAWKSTONE AVENUE SW ROAD B ADARE STREET SW SHELBOURNE PLACE SW COOLRAIN PLACE SE RORY AVENUE SW KINSALE PLACE SW HIBERNIA AVENUE SW BUNDORAN PLACE SW BANTRY BAY LOOP SW ROAD D ROAD E ROAD F ROAD G ROAD ROAD J ROAD K SHELBOURNE PLACE SW (LOOP PORTION) ROAD C (PARCEL E) ROAD E (LOOP PORTION) ROAD H ROAD K (CUL-DE-SACS) ROAD L ROAD M AC-1 THRU AC-13 Appendix E Road Names & Associated Road Sections 081913.doc ROAD SECTION 1 2 3 4 5 5 5 5 5 5 5 5 5 5 5 5 5 5 5 5 6 6 6 6 6 6 6 7 GOLDSMITH LAND DEVELOPMENT SERVICES Page 63 of 110 Back to Agenda APPENDIX F DEVELOPMENT AGREEMENT FOR McCORMICK WOODS August 20. 2013 Preliminary # of Lots in Planning # of Lots Approved Development Plat Preliminary Parcels in Permits Phase Plat Planning Parcels III 152 C, E, F 148 SDAP for Parcel E Water/Sewer plans for Parcel E SDAP for St. Andrews Drive Water/Sewer for St. Andrews Drive IV 118 L, M 126 SDAP for Parcel L V 294 D, J, H, 251 SDAP for Parcel D K Water/Sewer plans for Parcel D SDAP for St. Andrews Drive Water/Sewer for St. Andrews Drive Total 564 525 Page 64 of 110 Back to Agenda McCormick Woods Phases III, IV and V Preliminary Plats Underlying Tax Lots with Parcel ID and Acreage August 19, 2013 !092301-1-003-2004 Parcel C Parcel G 14.35 042301-4-029-2003 Parcel D 73.32 092301-1-006-2001 Parcel E 29.89 092301-1-005-2002 Parcel F 23.18 092301-4-004-2007 Parcel H 28.33 092301-1-009-2008 Parcel J Parcel K 73.37 092301-4-005-2006 Parcel D 19.82 092301-4-003-2008 Parcel L 21.63 092301-4-002-2009 Parcel M 20.21 162301-1-021-2003 162301-1-020-2004 162301-1-019-2007 Parcel M Parcel M Parcel M 26.09 19.79 19.73 13 Tax Parcels 369.71 Acres* *The acreage of the underlying tax lots is greater than the overall acreage for Phases III, IV and V McCormick Woods Preliminary Plats. Portions of these tax lots are not included within the plat boundaries. 12161 Ph III IV V AltTax Lots Parcel Names Acreage 081913.doc Page 65 of 110 Back to Agenda Name and Full Address Doug Skrobut 4978 SW Lake Flora Rd Port Orchard, WA 98367 Please print neatly or type information. DOUG SKROBUT 201112190136 Agreement Rec Fee: $ 90.00 12/19/2011 12:11 PM Page: 1 of 29 Walter Washington, Kitsap Co Auditor 11111111111111111111 IIII 1111111 I I I I I I I111 I I I 111111111111111111111111111111111111 I I I I 11111 1111 The Auditor/Recorder will rely on the information provided on the form. The staff will not read the document to verify the accuracy or completeness of the indexing information provided herein. Document Title(s): Annexation Agreement 1 Development Agreement Additional reference Ws on page: Reference Number(s) of related documents: Grairtor(s): GEM1 LLC City of Port Orchard Grantee(s): Additional Grantors on Page: _ Additional Grantee on Page: Legal Description (abbreviated form: i.e. Plat name, lot, block, section, township, range, quarter/quarter). Portions of T23N, S 5,7,8 & 17,R1 E W.M. See page 14 for additional Assessor's Property Tax Parcel/Account Number: 082301-1-01 0-2006 see page 24 for additional parcel #s I, , am requesting an emergency nonstandard recording for an additional fee of $50.00 as provided in RCW 36.18.010. I understand that the recording processing requirements may cover up or otherwise obscure some part of the text of the original document. .i:lpubdocslletterskover letter 09/2004 Page 66 of 110 Back to Agenda ANNEXATION AGREEMENT No. 085-11 McCormick West THIS ANNEXATION AGREEMENT ("Agreement") is entered into between the City of Port Orchard, a Washington municipal corporation ("the City"), and GEM 1 LLC, a Washington limited liability company ("GEM 1"). RECITALS A. GEM 1 is the owner and developer of the McCormick West Master Plan and Preliminary Plat. The McCormick West development is generally located on the south side of Old Clifton Road, west of the existing McCormick Woods development. When complete, GEM I anticipates that the McCormick Woods and McCormick West developments will be merged as a single development with a single homeowners association serving both projects. The McCormick West area is shown in the site plan attached as Appendix A. The legal description of McCormick West is attached as Appendix B. B. GEM 1 obtained Kitsap County's approval of a Sub -Area Plan and Development Agreements for Stormwater, Traffic, and Parks and Open Space, which regulates development of all of GEM 1's developments in the Urban Growth Area, including McCormick West. These Agreements were based on impact analyses for traffic and other factors that assumed approximately 1750 residential units would be constructed in the area subject to the Agreements. GEM 1 now proposes to construct approximately 1550 total units in the affected area, which is below the threshold of the analyses which were the basis of the Agreements In addition, GEM 1 obtained Kitsap County approval of a Master Plan which includes McCormick West, as well as a Preliminary Plat approval for McCormick West. As part of these approvals, Kitsap County has approved critical area designations and established requirements for critical area protections, including buffer areas, for McCormick West. Kitsap County has also approved an overall preliminary storm drainage plan for McCormick West. C. GEM 1 has also obtained Kitsap County approval of a Site Development Activity Permit (SDAP) for Phase 1 of McCormick West and has submitted an application to Kitsap County for an Overall Clearing and Grubbing SDAP for the entire McCormick West site, which, following review and comment by Kitsap County has been revised to include grading for purposes of constructing storm water control facilities generally consistent with the overall preliminary storm drainage plan. D. The City and Kitsap County have different processes for the approval of applications for developments like McCormick West. The City and County also have similar, but slightly different, substantive standards for the development of projects like McCormick West. E. The City and GEM I wish to annex the McCormick West site to the City. Page I of 27 Page 67 of 110 Back to Agenda E. The City and GEM I recognize that GEM 1 has a right to develop McCormick West pursuant to the Kitsap County standards to which it is vested. However, for a variety of reasons, both the City and GEM I believe it would be preferable to complete the McCormick West using City permit procedures. The City and GEM I also believe it would be preferable to complete the review and approval of McCormick West based on City of Port Orchard substantive standards, to the extent that use of such standards does not require significant redesign of the project. G. The City and GEM 1 desire to enter into an Annexation Agreement, as authorized by RCW 36.70B.170, which will establish procedures and standards for the further review and approval of McCormick West after the proposed annexation. This Agreement is intended to set forth the uses that will be permitted on the Property, the development standards that will apply, the period of time within which the development standards will apply, and the method and manner in which it may be developed. Based on the foregoing considerations, the City of Port Orchard and GEM 1, LLC enter into the following Annexation Agreement. ANNEXATION AGREEMENT 1. Definitions: a. When used in this document, unless the context clearly indicates otherwise, the following words, when capitalized shall be defined as set forth in this paragraph. (1) "Adopting Resolution" means the resolution that approves this Development Agreement, as required by RCW 36.70B.200. (2) "Agreement" means this document, entitled Annexation Agreement. (3) "City" means the City of Port Orchard. (4) "Construction Standards" means the City adopted regulations governing construction standards and specifications, such as, but not limited to, the International Building Code, Uniform Plumbing Code, National Electric Code, the International Fire Code, the Uniform Code for the Abatement of Dangerous Buildings, and such other codes adopted by the City, with or without amendment. (5) "Development Standards" means the development requirements set forth in this Section 3 of this Agreement, the SEPA conditions, and all of the regulations duly adopted by the City, either as a part of the Port Orchard Municipal Code, or adopted therein by reference, and any administrative regulations duly adopted by the City, that relate to the use, alteration or development of real property within the City,. Development Standards does not include Construction Standards or the applicable fees in effect at such Page 2 of 27 Page 68 of 110 Back to Agenda time as grading, building, or other applicable permit applications are submitted and deemed complete by the City. (6) "Effective Date" means the effective date of the Adopting Resolution. (7) "GEM 1" means GEM 1, LLC the fee simple title holder of the Property, its successors or assigns. (8) "McCormick West" or the "Property" means the real property currently within the County, as depicted in Appendix A and legally described in Appendix B. The Property consists of approximately 605 acres. (10) "Vesting Date" shall mean September 28, 2005, the date of initial Preliminary Plat application on which Kitsap County advised GEM 1 that its application was deemed to be "complete." (11) "Vested Development Standards" means the Development Standards in effect on the Vesting Date, except as modified by the requirements set forth in Section 3 of this Agreement. 2. Development Review Process: a. The City of Port Orchard will process final plat applications for McCormick West using the Preliminary Plat approval pursuant to City process requirements. In that review process, the City will apply the conditions of preliminary plat approval imposed by Kitsap County, unless specifically modified by this Agreement. b. GEM I shall be entitled to complete the construction work authorized by the Phase 1 SDAP previously issued by Kitsap County, provided that the City shall have the authority to inspect the work and enforce the conditions of approval of that SDAP. C. The City will assume jurisdiction over and complete the review process for the pending Overall Clearing and Grading SDAP application described in Recital C, above. d. All subsequent applications for permits related to development of McCormick West will be processed based on applicable City process requirements for the particular type of permit. 3. Development Standards: The property will be developed consistent with City code, as the code may be changed from time to time, with the following modifications: a. Minimum. Residential Lot Size. The McCormick West Preliminary Plat map depicts a residential lot layout based on a lot size range of 3,500 square feet to approx. 10,000 square feet. The minimum residential lot size for the Property subject to Kitsap County Urban Page 3 of 27 Page 69 of 110 Back to Agenda Cluster and Urban Medium zoning is 2,400 square feet for detached residential homes and there is no minimum lot size applicable to multi -family uses. b. Tree Retention. The City and County have very different requirements for provision of open spaces and retention of significant trees. The City's current significant tree retention regulations are based on an assumption that a certain number of significant trees will be retained throughout a project (defined as a tree having diameter at breast height of 36" or greater). The County, on the contrary, requires that a certain percentage of a site be retained as open space in which existing vegetation is protected. GEM 1 designed and has obtained Kitsap County approval of the preliminary plat and phase I SDAP for McCormick West based on the County system. As a result, there are and will be substantial areas of trees retained within the McCormick West project but in a pattern that is different than the City's lot by lot system. In order to accommodate this difference, the City and GEM 1 agree that development on lots within McCormick West shall be exempt from the provisions of the Port Orchard significant tree retention regulations (PMC 16.50.180 through 16.50.220, as now or hereafter amended) for a period of fifteen years from the date of final plat approval. After the expiration of said fifteen year period, any new or additional development on any lot in McCormick West shall be done in compliance with the requirements of significant tree retention regulations in effect at the time of application for such new or additional development. C. Stormwater Control Standards. The Development Agreement between GEM I and Kitsap County for Storm Water for McCormick West dated February 9, 2009 (a copy of which is attached as Appendix C) shall control except as otherwise provided in this subsection. The operation, maintenance, and repair of the stormwater facilities shall be controlled by POMC 15.32.080 "Operation and Maintenance," as in effect at the time of a complete SDAP Application for construction of the stormwater facilities. The City will not own nor will it be responsible for operation, maintenance, or repair of the stormwater facilities unless the City takes action to accept the stormwater facilities in accordance with POMC 15.32.080(3), as now or hereafter amended. d. Roads. The McCormick West preliminary plat approval is based on a combination of public and private roads. The final plat of McCormick West will be designed and constructed accordingly, subject to the following: (1). Road Cross Sections. McCormick West is and will be part of a larger development which was designed and constructed based upon the standards in the 2007 Kitsap County Road Standards (KCRS), including roadway width, sidewalk requirements, street trees and street lighting and related appurtenances. In order to provide uniformity of appearance, a common maintenance standard, and for consistency, except as noted below, the following exception to the KCRS was granted by the Kitsap County Hearing Examiner: "...A minor deviation from the standard was proposed to achieve a `rural' road section for the non fronted infrastructure roads.. " Page 4 of 27 Page 70 of 110 Back to Agenda Copies of the applicable Road Cross Sections are attached as Appendix D. The final plat of McCormick West shall be developed in accordance with the approved minor deviation. (2). Sprinkler Requirements. Although the City currently requires that homes served by private roads be built with fire sprinkler systems, this requirement shall not apply to private roads in McCormick West which are constructed to the standards set forth in this agreement which are maintained by the homeowners association, provided the if City, as some future date, adopts a requirement for sprinklers in all new single family residential units, that requirement shall apply to homes for which permit applications are submitted after the effective date of the ordinance adopting such a requirement. e. Zoning and Uses. The land uses for individual parcels or future development tracts are subject to the underlying City Zoning designation and associated land use code as identified in Port Orchard Municipal Code Section 16.30, as adopted on the Vesting Date. Future development is subject to the land use approval process, conditions, and potential SEPA review identified pursuant to the land use tables identified in Chapter 16.30. f. Final plat - Minor modifications. The preliminary plat of McCormick West was designed and approved based on Kitsap County's system for approval of minor modifications to the preliminary plat during the final plat review and approval process. The parties recognize that the City's standards for distinguishing between minor modifications, which may be approved by the staff, and major modifications, which require re -review by the Hearing Examiner, are more stringent than the County's. During the final plat process for McCormick West, the City staff is authorized to permit minor modifications without the necessity of further review by the Hearing Examiner so long as the modification does not (1) increase the number of authorized homes, (2) increase traffic volumes above the volume contemplated by the preliminary plat approval, (3) require modification or alteration of a critical area or buffer that was not contemplated by the preliminary plat approval, (4) increase the volume or rate of discharge of stormwater above that contemplated by the preliminary drainage plan that was considered during the preliminary plat approval process, or (5) reduce the amount of open space or recreational facilities contemplated by the preliminary plat approval. 4. Term of Agreement. a. Because the completion of the development of GEM 1's Urban Growth Area properties, including McCormick West, is expected to take considerably longer than the development of a single plat and because Kitsap County, the City of Port Orchard and GEM 1 all desire that these properties be developed in a coordinated manner, the Vested Development Standards shall be valid until fifteen (15) years after the date of preliminary plat approval for McCormick West) unless extended or terminated as provided herein. The City may grant a single five year extension if requested by GEM 1 and if the City finds that GEM 1 has made a reasonable effort to complete the final plat process, recognizing that the timing of development is dependent on market conditions, the availability of financing and various other factors beyond the control of the parties to this Agreement. Final plat approval may be granted for portions of Page 5 of 27 Page 71 of 110 Back to Agenda McCormick West, provided such final plat recording for all of McCormick West shall occur within the time periods established by this Section. b. Following the expiration of the term or extension thereof, this Agreement shall have no force or effect and the Property shall be subject to the regulations duly adopted by the City, either as part of the Port Orchard Municipal Code, or adopted therein by reference, and any administrative regulations duly adopted by the City that relate to the use, alteration or development of real property within the City. Provided, however, if a complete building permit application is submitted prior to the expiration of the term or extension thereof, the City shall allow the construction and occupation of the improvement covered by said building permit application so long as the building permit issued on said application remains in full force and effect and construction is substantially completed within eighteen (18) months of the date the City issues the building permit. 5. Phasing. GEM 1 shall be allowed to develop the Property in phases, with the phases being allowed to occur in such sequence as GEM 1 deems necessary in order to meet economic demands. Provided, however, GEM 1 must complete in each phase the improvements that are determined necessary by the City to adequately protect the public health and safety with regards to pedestrian and traffic circulation, emergency access, stormwater management, and utilities as they relate to the proposed phase. 6. Default, No party shall be in default under this Agreement unless it has failed to perform following written notice of default from the other party. Notice of default shall allow the defaulting party thirty (30) days to cure or commence cure where thirty (30) days is insufficient for a complete cure. Each notice of default shall specify the nature of the alleged fault and the manner in which the default may be cured satisfactorily. A party not in default under this Agreement shall have all rights and remedies provided by law or equity, including without limitation: issuance of a stop work order, injunction, damages, action for specific performance, or to require action consistent with this Agreement. Nothing herein will operate to prevent either party from taking legal action regarding noncompliance that threatens public health, safety or welfare prior to the expiration of the thirty (30) day cure period following notice of default. No such action or preceding will operate to automatically terminate this Agreement, nor shall it release either party from any promise or obligation herein nor shall it release either party from any liability or obligation with respect to any breach of this Agreement occurring prior to the commencement of any legal action by a party. 7. Notices. All notices required by this Agreement shall be deemed delivered to the respective party on the date that it is personally delivered to the address(es) set forth below, or on the date that it is successfully sent by facsimile transmission to the facsimile number(s) set forth below: Page 6 of 27 Page 72 of 110 Back to Agenda City: James Weaver City Development Director 216 Prospect Street Port Orchard, WA 98366 Phone: 360-876-4991 Facsimile: 360-876-4980 With a copy to: Gregory A. Jacoby City Attorney P.O. Box 1317 Tacoma, WA 98401 Phone: 253-627-1181 Facsimile: 253-627-2247 Patricia J. Kirkpatrick City Clerk 216 Prospect Street Port Orchard, WA 98366 Phone: (360) 876-4407 Facsimile: (360) 895-9029 GEM 1 Doug Skrobut McCormick Land Company 4978 SW Lake Flora Road Port Orchard, WA 98367 Phone: 360-876-3395 Facsimile: 360-876-3 511 With a copy to: Bob Johns 1601 114t' Avenue SE, Suite 110 Bellevue, WA 98004 Phone: 425-451-2812 Facsimile: 425-451-2818 8. Reimbursement for Agreement Expenses of the City. GEM 1 agrees to reimburse the City for actual expenses incurred over and above fees paid by GEM 1 as an applicant incurred by City directly relating to this Agreement, including recording fees, publishing fees, and reasonable consulting and legal fees not otherwise included within application fees. This Agreement shall not take effect until the fees provided for in this section are paid to the City. 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 GEM 1. Page 7 of 27 Page 73 of 110 Back to Agenda 9. Amendments. No change or modification of this Agreement shall be valid unless the same is in writing and is signed by authorized representatives of the City and GEM 1. Provided, that any such amendment shall follow the process established by law for the adoption of a development agreement, as set forth in RCW 36.70B.200. No purported or alleged waiver of any of the provisions of this Agreement shall be binding or effective unless in writing and signed by the party against whom it is sought to be enforced. 10. Serious Threat to Public Health and Safety. Pursuant to RCW 36.70B.170(4), the City reserves the authority to impose new or different regulations affecting the Property, including but not limited to amendments to the Comprehensive Plan, Zoning Code, Official Zoning Map, or development regulations, to the extent required by a serious threat to public health and safety. 11. Recording; Binding Effect; Assignment. This Agreement and any subsequent amendments thereto shall be recorded with the Kitsap County Auditor. GEM 1 shall be responsible for the cost of recording this Agreement and any subsequent amendments thereto. The rights, obligations, conditions and interests set forth in this Agreement shall run with the land and shall inure to the benefit of and be binding upon the GEM 1, and its heirs, personal representatives, successors and assigns and shall benefit the properties described in Appendix B. GEM 1 shall have the right to convey, assign, apportion or otherwise transfer any and all of its rights, obligations, conditions, and interests under this Agreement. Provided, however, within thirty (30) days of the effective date of GEM 1's conveyance, assignment, apportionment, or other transfer of its rights under this Agreement, GEM 1 must provide notice to the City of the same. 12. Relationship of the Parties. Notwithstanding any other provision of this Agreement, or any other agreements, contracts, or obligations which may derive herefrom, nothing herein shall be construed to make the City or GEM 1 partners or joint venturers, or to render any other parties liable for any of the debts or obligations of the other parties, it being the intention of this Agreement merely to create the agreements set forth herein. 13. Third Party Legal Challenge. In the event any legal action or special proceeding is commenced by any person or entity other than a party to this Agreement, and a party's successor or assigns, to challenge this Agreement or any provision herein, the City may elect to tender the defense of such lawsuit or individual claims in the lawsuit to GEM 1 and its successors or assigns. In such event, GEM i and its successors or assigns shall hold the City harmless from and defend the City from all costs and expenses incurred in the defense of such lawsuit or individual claims in the lawsuit, including but not limited to attorney's fees and expenses of litigation, and damages awarded to the prevailing Page & of 27 Page 74 of 110 Back to Agenda party or parties in such litigation. GEM 1 and its successors or assigns shall not settle any lawsuit without the consent of the City. The City shall act in good faith and shall not unreasonably withhold consent to settle. 14. Specific Performance. The parties specifically agree that damages are not an adequate remedy for breach of this Agreement, and that the parties are entitled to compel specific performance of all material terms of this Agreement by any party in default thereof. 15. No Third Party Beneficiaries. This Agreement is made and entered into for the sole protection and benefit of the parties hereto and their successors and assigns. No other person shall have any right of action based upon any provision of this Agreement. 16. Applicable Law and Venue. This Agreement shall be governed by and construed in accordance with the laws of the State of Washington. Any action with respect to this Development Agreement shall be brought in Kitsap County Superior Court, Port Orchard, Washington. 17. Multiple Originals. This Agreement may be executed in multiple copies, each of which shall be deemed an original. 18. Entire Agreement, Construction, This Agreement constitutes the entire agreement of the parties and incorporates all prior discussions and agreements. The captions throughout this Agreement are for convenience and reference only and the words contained in them shall not be held to expand, modify, amplify or aid in the interpretation, construction or meaning of this Agreement. All parties hereto have been represented by legal counsel and accordingly hereby waive the general rule of construction that an agreement shall be construed against its drafter. 19. Attorney's fees, In the event that any party to this Agreement brings a lawsuit against any other party in order to enforce any provision of this Agreement or to redress any breach thereof, the prevailing party in any such lawsuit shall be entitled to recover its costs and reasonable attorney's fees in addition to any other available remedy. Page 9 of 27 Page 75 of 110 Back to Agenda IN WITNESS WHEREOF, this Agreement was executed by the parties on the dates hereinafter indicated. CIT Its: Dat. ATNricia By: aKi+P6tric4k,JMMC, City Clerk GEM 1, LLC Its: Date: STATE OF WASHING ) ss. COUNTY OF KITSAP I certify that I know of have satisfhvkory evidence that is the person who appeared before me, and said person ackhcQwledged that he/she signed this instrument, on oath stated that he/she was authorized to execu the instrument and acknowledge it as the of GEM 1, LLC to be the fee d voiuntary act of such party for the purposes mentioned in the instrument. SUBSCRIBED AND SWORN to before me this NOTARY PUBLIC in and Washington, residing at _ My appointment expires: _ Page 10 of 27 20 . State of Page 76 of 110 Back to Agenda GEM 1, LLC y G,,4- rr,. L4-44 CO3-1-PA`4q A c',���r-ti ti�/f.t �arLpd• �rn� By: ;MP' Its: DIRECTOR OF OPERATIONS Date: a1i fc�1Rn i G 5�� QtTcAQ-bQ G{ A c-K n0 v', l QrAq[)nC)v)-r STATE OF WASHINCTON) saClLamgn110 ) ss. COUNTY OFF'- } I certify that I w of have satisfactory evidence that W ft MC �'�I MIiis the person who appeared before me, an said person acknowledged that he/site signed this instrument, on oath stated that he/,sire was aut ized to execute the instrument and acknowledge it as the of GEM 1, LL to be the fee and voluntary act of such party for the purposes mentioned in the instrument. SUBSCRIBED AND SWORN to before my this day of 20_ NOTARY BI Washington, res' My appointment STATE OF WASHINGTON ) ss. COUNTY OF KITSAP ) in and for the State of g at I certify that I know of have satisfactory evidence that,44 is the person who appeared before me, and said person acknowledged that he/Asigned this instrument, on oath stated that he/she was authorized to execute the instrument and acknowledge it as the of the City of Port Orchard to be the fee and voluntary act of such party for the pluposes mentioned in the instrument. SUBSCRIBED A 1, fore me this ay of. .. G�pTA,4y'; n N C1. 7k s� •,) �= NOTARY PU LI in"Ad for the State of 9�F• • •`.14; .�•' G~ Washington, residing at L OP WMy appointment expires: -MIDI? Page 11 of 27 Page 77 of 110 Back to Agenda CALIFORNIA ALL-PURPOSE ACKNOWLEDGMENT State of California County of On O h O tl Date personally appeared before me, PW?l 1C Here Insert me and Title of the Hi r \V C VQ V-r\ ow Name(s) who proved to me on the basis of satisfactory evidence to be the persono) whose namely) is/aye subscribed to the within instrument and acknowledged to me that hel�elth+3y executed the same in his/lrW/jLidr authorized capacity(iii�st and that by his/Wltber signature(sl on the instrument the person(, or the entity upon behalf of DENrE HDLBi which the persons) acted, executed the instrument. CommA 1893720 f� NOTARY PUBLIC -CALIFORNIA N SACRAMENTO COUNTY I certify under PENALTY OF PERJURY under the laws MY COMM. UP. DUNE 27, 24l4 of the State of California that the foregoing paragraph is true and correct. WITNESS my hand and official seal. Signature cy,� Place Notary Seal Above signature of Notary Public OPTIONAL Though the information below is not required by law, it may prove valuable to persons relying on the document �! and could prevent fraudulent removal and reattachment of this form to another document. Descri 'on of Attached Document Title or Type of cument: Document Date: Signer(s) Other Than Named Ab Capacity(lies) Claimed by Signer(s) Signer's Name: Individual ❑ Corporate Officer — Title(s): — ❑ Partner — ❑ Limited ❑ General ❑ Attorney in Fact ❑ Trustee ❑ Guardian or Consery ❑ Other: Signer IPio�eprose nting: Top of thumb here Number of tiler's Nam Individual ❑ orate Officer —Title(s): ❑ Partn —❑ Limited ❑ General ❑ Attorney in ct ❑ Trustee ❑ Guardian or Conse ❑ Other: Signer Is Representing: Top of thumb here 02007 National Notary Association • 9350 De Soto Ave., P.O. Box 2402 • Chatsworth, GA 91313-2402 • www.NationalNotary.org Item u5907 Reorder: Cali Toll -Free 1-900-876-6827 Page 78 of 110 Contract No. 085-11 A City of Port Orchard McCormick West Annexation Proposal = McCormick West Annexation Proposal - Annexation Proposal City of Port Orchard Vicinity Map '' °"' Port Orchard UGA Page 79 of 110 Back to Agenda Exhibit B Legal Description McCormick West Annexation The following described areas situate within Section 5, Township 23 North, Range 1 East, W.M., Kitsap County, Washington, described as follows: Old Clifton Road (County Road No. 132) as deeded to Kitsap County under Auditor's File Number 666551; EXCEPT that portion previously annexed into the City of Port Orchard under Ordinance No. 011-09; And the following described areas situate within Section 7, Township 23 North, Range I East, W.M., Kitsap County, Washington, described as follows: The South half of the North half of the Northeast quarter of the Northeast quarter; And the following described areas situate within Section 8, Township 23 North, Range 1 East, W.M., Kitsap County, Washington, described as follows: All of Section 8; EXCEPT that portion previously annexed into the City of Port Orchard under Ordinance No. 011-09; And EXCEPT that portion as described in Quit Claim Deed recorded under Auditor's File Number 9512290386; And the following described areas situate within Section 17, Township 23 North, Range 1 East, W.M., Kitsap County, Washington, described as follows: Tracts 1 through 7, inclusive, as described in Owner's Request and Acknowledgement for 20 Acre Land Segregations recorded under Auditor's File Number 200010310145. Legal Description as provided by Kitsap County Public Works Dept. —July 17, 2011 Page 80 of 110 Cor Back to Agenda Exhibit C DEPF OF COMMUNITY DEV 200903040111 Name and Full Address Agreement Rea Fee: $ 51,00 03/04/2089 01:43 PM Page: i of t0 Walter Washington, Kitsaa Co Auditor IIIIIII IIIIII III I#III Ili! IIIIIII 11111 IIII IIII 111111111111IIIII 111 IIIII IIII IN IIII � C •� ►ten Please print neatly or type information. The Auditor/Recorder will rely on the information provided on the form. The staff will not read the document to verify the accuracy or completeness of the indexing information provided herein. i �1 Additional reference #'s on page: Reference Number(s) of related documents: a. ogo Granter(s): Grantee(s): Additional Grantee on Page: c 1 iwtil Z� • t�1 E Legal Description (abbated form: i.e. Plat name, lot, block, section, township, range, quarter/quarter). Assessor's Property Tax Parcel/Account Number: 3 C i — i — 010 sf-12 ± 1, , am requesting an emergency nonstandard recording for an additional fee of $50.00 as provided in RCW 36.18.010. 1 understand that the recording processing requirements may cover up or otherwise obscure some part of the text of the original document. Signature: 1:Ipubdocslletterslcover letter 09l2004 Page 81 of 110 Back to Agenda DEVELOPMENT AGREEMENT FOR STORMWATER McCormick West Master Plan & Preliminary Plat THIS DEVELOPMENT AGREEMENT ("Agreement") is entered into between Kitsap County, a Washington municipal corporation ("the County"), and GEM I LLC, a Washington limited liability company ("GEM I"). RECITALS WHEREAS, GEM I is the owner and developer of approximately 606 acres of property in south Kitsap County, which is a portion of a larger area in the South Kitsap Urban Growth Area, known as McCormick West. The property is located in the general vicinity of Old Clifton Road and McCormick Woods Drive, and is shown in the site plan attached as Appendix A and described on A endix B attached; and WHEREAS, GEM I is in the process of preparing plans for the development of the Property and has obtained approval of a Master Plan and Preliminary Plat for McCormick West under application Nos. 05 29262 and 05 30003 on May 30, 2008; and WHEREAS, GEM I intends to construct regional stormwater control facilities (the "Regional Stormwater Facilities") that will provide stormwater runoff quantity control and stormwater runoff quality treatment for all of the anticipated development in McCormick West that belong to GEM 1 and its successors, as illustrated in Appendix A; and WHEREAS, GEM 1, as part of the approved Master Plan and Preliminary Plat for McCormick West, prepared a preliminary analysis and technical study of the stormwater requirements for the Property. The analysis was prepared pursuant to Title 12 of the Kitsap County Code by Hugh G. Goldsmith and Associates Inc., a civil engineer licensed in the State of Washington ("Goldsmith"), and is titled "Preliminary Drainage Control Plan and Level One Downstream Analysis for McCormick West Preliminary Plat (dated August 2005; Updated October 2007). It has received preliminary approval by Kitsap County. It will serve as the basis for the finalized design and construction of the Regional Stormwater Facilities except as modified to comply with the conditions herein; and WHEREAS, Kitsap County has reviewed GEM 1's Master Plan and Preliminary Plat for compliance with Title 12 of the Kitsap County Code and all other relevant requirements currently in effect as of the date of application; and WHEREAS, construction by GEM l of Regional Stormwater Facilities for McCormick West provides a public benefit to the County in that GEM I will bear the expense of constructing Regional Stormwater Facilities that will provide stormwater management through a combined stormwater facility for several properties and both the public and private road systems in McComiick West, including portions of Old Clifton Road that currently are not treated, in lieu of Page ! of 9 Page 82 of 110 Back to Agenda individual stormwater systems. Further, the Stormwater system design for McCormick West will + include runoff dispersion or other Low Impact Development techniques to the extent practical, for purposes of critical area hydrology and reduction of stormwater facility sizes to increase open space within the designated Stormwater tracts; and WHEREAS, GEM 1 anticipates that development of its property will occur over a period of years, and WHEREAS, the parties wish to have an assurance that if the Regional Stormwater Facilities are constructed, they will be usable for the future development of the GEM 1 properties and roadways within McCormick West; and WHEREAS, RCW 36.7013.170, et. seq., authorizes counties to enter into development agreements with owners of real property to establish, among other things, the "development standards and other provisions that shall apply to and govern and vest the development" as well as a "build -out or vesting period for applicable standards." AGREEMENT NOW, THEREFORE, the County and GEM 1 agree as follows: 1. Incorporation of Recitals. The recitals set forth above are expressly incorporated into the Agreement by this reference. 2. GEM 1 Design and Construction of Regional Stormwater Facilities: GEM 1 has preliminarily designed and will construct Regional Stormwater Facilities for the Property, including land to be dedicated to the County for Road Rights -of -Way. Such design and construction shall comply with the standards contained in Title 12 of the Kitsap County Code and such other applicable Kitsap County development regulations in effect at the time that GEM 1's Master Plan application and Preliminary Plat application were deemed complete (October 2005). For purposes of this Agreement, "Regional Stormwater Facilities" shall mean the stormwater runoff quantity control and stormwater runoff quality treatment facilities and associated conveyance facilities to be engineered and constructed pursuant to the Engineered Drainage Plans approved as part of the McCormick West Master Plan and Preliminary Plat and to be located within easements or tracts dedicated to Kitsap County. 3. County Review and Approval of Regional Stormwater Facilities: The County will review and approve as part of the Site Development Activity process, with conditions as appropriate, the Regional Stormwater Facilities if they comply with the standards contained in Title 12 of the Kitsap County Code and all other applicable development regulations in effect at the time the Master Plan Application and Preliminary Plat Application were deemed complete (October 2005). Page 2 of 9 Page 83 of 110 Back to Agenda 4. Vesting Rules: This Agreement shall remain in effect and the GEM 1 developments shall be considered to be vested against changes in Title 12 of the Kitsap County Code, as follows: 4.1 This Agreement shall remain in effect and GEM 1 shall be considered to be vested against changes to Title 12 of the Kitsap County Code for a period of ten (10) years after the date of Master Plan approval and Preliminary Plat Approval for McCormick West. This period may be extended for one (1) five-year period in accordance with the procedures and requirements of Kitsap County Code 17,428.110 in effect at the time the extension is requested. 4.2 To the extent that either GEM 1 does not apply for development or building permits for all or a portion of the property within the time periods, including any extension, set forth in Section 4.1, the County shall have the authority to require additional stormwater control improvements as may be required by Title 12 of the Kitsap County Code or other applicable regulations in effect at the time of such application. 5. Ownership, Maintenance and Repair: 5.1 GEM i shall initially own, operate, maintain, and repair as necessary the Regional Stormwater Facilities. Prior to the issuance of the SDAP Permit for the construction of a Regional Stormwater Facility, GEM 1 shall post and maintain a construction bond pursuant to Title 12 of the Kitsap County Code. After construction of the Regional Stormwater Facility has been completed and approved by Kitsap County, GEM 1 shall post a two (2) year maintenance bond pursuant to Title 12, the amount of which shall be ten percent (101/6) of the actual construction cost of the Regional Stormwater Facility. The construction cost of the facilities requiring maintenance shall be determined by the project engineer, subject to the approval of the Public Works Director. At the end of the two (2) year period, the County will assume the ownership, operation, maintenance, and repair of the Regional Stormwater Facility provided all of the conditions set forth below are satisfied. 5.1.1 The Regional Stormwater Facility has been inspected and approved by the County and has been in satisfactory operation for at least two years; 5.1.2 Any part of the Regional Stormwater Facility that has been repaired or reconstructed has been approved by the County; 5.1.3 Any required easements and tracts have been conveyed to the County and have been recorded with the County Auditor; 5.1.4 Upon completion of construction, an operation and maintenance manual, including a maintenance schedule, has been submitted to and accepted by the County; Page 3 of 9 Page 84 of 110 Back to Agenda 5.1.5 The Regional Stormwater Facility has been cleaned and maintained as necessary during the bonding period, and has passed all inspections performed by the County, which will occur no less frequently than every six months. 5.1.6 A complete and accurate set of reproducible as -built drawings has been provided to the County; and 5.1.7 In lieu of the requirement set forth in Kitsap County Code 12.24.030(1) that 80% of the entire parcel served by the Regional Stonnwater Facility be constructed prior to the County's acceptance of ownership and maintenance responsibility of the Regional Stormwater Facility, the following shall be conditions imposed on development of the GEM 1 property: For each Site Development Activity Permit constructed by GEM 1 or its successors within McCormick West, a maintenance bond shall be posted and maintained in the same amount as the ten percent (10%) of the construction cost of the Regional Stormwater Facility as previously determined pursuant to Section 5.1, for the purpose of providing security against the risk of damage to that Facility during construction of plat improvements. This bond shall remain in effect until 80% of the lots within the area subject to the Site Development Activity Permit have been constructed. This bond shall be in addition to the maintenance bond required for any stormwater and road improvements to be constructed as part of the preliminary plat which are not components of the Regional Stormwater Facility., 6. Low Impact Development Techniques. GEM 1 agrees to use its best efforts to incorporate feasible Low Impact Development techniques during the design and construction of the infrastructure (i.e., roads and utilities) and the residential structures which will be developed in the McCormick West project. The parties acknowledge that the feasibility of Low Impact Development techniques is dependent on site specific soil conditions, topography and a variety of other conditions which must be evaluated on a ease -by -case basis as individual development peianits are reviewed. GEM 1 further agrees (1) to the extent the use of Low Impact Development techniques reduces the size of the stormwater treatment facilities that are needed in McCormick West, the area of such reductions shall be included as open space being created in McCormick West, and (2) the number of permitted residential units in McCormick West will not be increased due to any reduction in the amount of area planned for stormwater facilities in the approved'preliminary plat of McCormick West. 7. Indemnity. To the fullest extent permitted by law, GEM 1 shall indemnify, defend and hold harmless the County and its elected and appointed officials, officers, employees and agents, from and against all claims arising out of or resulting from (1) the design or construction of the Regional Stormwater Facility to the extent of any claim that the Facility was -not designed or constructed in compliance with the requirements of the Page 9 of 9 Page 85 of 110 Back to Agenda Kitsap County Surface Water. Manual and other applicable rules and regulations, or (2) any negligent maintenance or repairs that were performed by GEM 1 prior to assumption of ownership and maintenance of the Regional Stormwater Facility by Kitsap County. This indemnification obligation shall not extend to claims arising as the result of alleged inadequacies in the Kitsap County Surface Water Manual. Nothing herein shall be construed as either shortening or extending any applicable statute of repose or limitations that may apply to the design, construction or maintenance of the Regional Stormwater Facility. "Claim" means any financial loss, claim, suit, action, damage or expense, including but not limited to attorneys' fees, attributable to injury, sickness, disease or death, or damage to property. 8. Arnendnients. Except as otherwise provided in this Section, no change or modification of this Agreement shall be valid unless the same is in writing and is signed by authorized representatives of the County and GEM 1. No purported or alleged waiver of any of the provisions of this Agreement shall be binding or effective unless in writing and signed by the party against whom it is sought to be enforced. 9. Serious Threat to Public Health and Safety. Pursuant to RCW 36.70B.170(4), the County reserves the authority to impose new or different regulations to the extent required by a serious threat to public health and safety. 10. Binding Effect. This Agreement shall be recorded with the Kitsap County Auditor. The recording date shall be the effective date of this Agreement. The Agreement shall inure to the benefit of and be binding upon the heirs, personal representatives, successors and assigns of the parties hereto and shall benefit the properties described under Appendix ndix B, provided that the indemnification obligation of GEM 1 established pursuant to Section 7 of this Agreement shall be binding solely on the corporate successors and assigns of GEM 1 but shall not be binding on any homeowner's association created by GEM 1 or on purchasers of individual lots in the GEM 1 Development. 11. Relationship of the Parties. Notwithstanding any other provision of this Agreement, or any other agreements, contracts, or obligations which may derive herefrom, nothing herein shall be construed to make the County or GEM 1 partners or joint venturers, or to render any other parties liable for any of the debts or obligations of the other parties, it being the intention of this Agreement merely to create the agreements set forth herein with regard to the Regional Stormwater Facilities for the property. 12. Applicable Law and Venue. This Agreement shall be govemed by and construed in accordance with the laws of the State of Washington. Any action with respect to this Development Agreement shall be brought in Kitsap County Superior Court, Port Orchard, Washington. 13. Multiple Originals. This Agreement may be executed in multiple copies, each of which shall be deemed an original. Page 5 of Page 86 of 110 Back to Agenda 14. Construction. The captions tiuoughout this Agreement are for convenience and ; reference only and the words contained in them shall not be held to expand, modify, amplify or aid in the interpretation, construction or meaning of this Agreement. All parties hereto have been represented by legal counsel and accordingly hereby waive the general rule of construction that an agreement shall be construed against its drafter. 15. Attorney's Fees. In the event that any party to this Agreement brings a lawsuit against any other party in order to enforce any provision of this Agreement or to redress any breach thereof, the prevailing party in any such lawsuit shall be entitled to recover its costs and reasonable attorney's fees in addition to any other available remedy. IN WITNESS WHEREOF, this Agreement was executed by the parties on the dates hereinafter indicated. DATED this _ day of I kl-) V tA,a Y lI , 2009. BOARD OF COUNTY COMMISSIONERS F GOM� KITSAP COUNTY, WASHINGTON NNE' ss' O:�'•'i O'••. i ATTEST: C ' � . •'; Q: C5: CHARLOTTE GARRIDO, Chair m ' %Aj r Co �9k— )� Ap CO V STEVE BAULR, Commissioner Opai Robertson t✓�``� Clerk of the Board JOSH B , Commissioner APPROVED AS TO FORM: p y Prosecu ing Attorney YP Date:? Page 6 of 9 Page 87 of 110 Back to Agenda GEM I, LLC By: Its: -----Managing Npemr Date: p 11 STATE OF WASHINGTON ) ) ss. COUNTY OF KITSAP I certify that I Icnow of have satisfactory evidence that }k WAyOTT 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 acknowledge it as the f of GEM I, LLC to be the fee and voluntary act of such party for the purposes mentioned in the instrument. SUBSCRIBED AND SWORN to before me this 114 day ofJa4K42009, Robert D. Johns, A Date: January 8, 2009. . Wwj� 0apuW-L- - NOTARY PUBLIC in and for the State o Washington, residing at G ((h& My appointment expires: I j'LP Q°_ for GEM 1, LLC Page 7 of 9 Page 88 of 110 Back to Agenda APPENDIX A ILLUSTRATIVE SITE MAP Page 8 of 9 2 Page 89 of 110 Back to Agenda APPENDIX B LEGAL DESCRIPTION Assessor Parcel #'s 082301-1-010-2006, 082301-1-013-2003, 082301-2-003-2003, 082301-2-002-2004, 082301-1- 014-2002, 172301-2-002-2003,172301-2-003-2002, 172301-2-006-2009, 172301-2-007-2008, 172301-2-005-2000, 172301-2-004-2001, 172301-3-004-2009 August 16, 2006 LEGAL DESCRIPTION FOR MCCO RMICK WEST GEM1, L.L.C. McCORMICK WEST PRELIMINARY PLAT PARCEL I: Fasultant parcels S and C of BounQary Line Adjustment recorded Under Audilor's Fite No. 3220649. Being a portion of Secllon 6, Township 23 North, Range 1 East, W.M., In Kilsap County, Washington. Parcel 11; Parcel 2 and 5 of land segregation request recorded under Auditor's File No. 3208728, being a pof ton or the northwest quarter and the northeast quarter or Section 8, Township 23 North, 'Range 1 East, W.M„ In FCitsap County, Washington. Parcel 111; The norIl l 1005 feel of the northwest quarter of Section 8, Township 23 north, range 1 e881, W.M., 1n Kitsep County, Washington; Except the east 134U Ceot'lhareor; Also Kcept that porbbn lying northwesterly and northerly of the southerly Tight-oF way margin of Old EJiftop Road; Also expept.lhe tportion conveyed to Dyane C, Williams and Lola L. Williams, husband and wife, by inSlrument recorded under Auditors File No, 9612203136. Parcel IV: Lots 1 through 7. Inclusive, of 20 acre land segregations recorded under Auditor's File No. 20001W014S. being a portion of Section 17, Township 23 north, Range 1 East. W.M-, In Kllsap County, Washington. The above legal description was taken from Land Title Company Title Report No. E-169566 doted March 19, 20p3, 05500.1GEMT22&R•x-0590- Prepared by: D.Doc Pape 1 or i Checked by: Page 9 of 9 'GOLDSM1TH 9 cASSOCtATES- Page 90 of 110 Back to Agenda McCORMICK WEST DEVELOPMENT AGREEMENT ROAD SECTIONS 11-18-2011 APPENDIX 0 rn o Lq 3 F� GOLDSMITH LAND DEVELOPMENT SERVICES Mt\ACA6\"N\05\06500\06600E69.d. 0 n 00 r n �c LA 0 r r m n 0 w rn z -i 8 A N v SHEET 1 OF 4 Page 91 of 110 Back to Agenda McCORMICK WEST DEVELOPMENT AGREEMENT ROAD SECTIONS 11-18-2011 LOCAL ROAD MINOR wl MEDIAN SECTION C N.T.S. ANDETiTE�AAGTERP)GUTTER) NDUTR(fY.5' 5' i 1.5' S' 7' 11' 11' 7' S' WALK PARKING DRIVE LANE DRIVE LANE PARKING WALK LOCAL ROAD MINOR LOOP SECTION D N.T.S. 2% TL VERTICAL CURB AND VERTICAL (IYP) R AND GUTTER (TYP) I 5 7' 11 11 T 5' PARKING" bItIVE LANE DRIVE LANE PARKING' WALK 42' R.O.W. " AT INTERSECTIONS AND DRIVEWAY LOCATIONS, WHERE PARKING CAN NOT BE PROVIDED, TRAVEL WAY MAY NARROW WITH CURB BULB OUTS TO 24' MIN. LOCAL ROAD MINOR ® GOLDSMITH SECTION E ® LAND DEVELOPMENT SERVICES SHEET 2 OF �4 .,\ACAO\4LAN\03\06600\06600i69.d•p Page 92 of 110 Back to Agenda MCCORMICK WEST DEVELOPMENT AGREEMENT ROAD SECTIONS 11-18-2011 VERTICAL CURB AND GUTTER (TYP) , 10, 10, S' DRIVE LANE DRIVE LANE WALK LOCAL MINOR ACCESS LANE SECTION F N.T.S. PRIVATE ACCESS TRACT SECTION G N.T.S. SOLDSMITH LAND DEVELOPMENT SERVICES M:\ACAD\PLAH\05\06600\06600E99.d.0 SHEET 3 OF 4 Page 93 of 110 Back to Agenda McCORMICK WEST DEVELOPMENT AGREEMENT ROAD SECTIONS 11-18-2011 � � N Cl � m = N S n o o n m a iwt m R+ v) m n n rp Z A--rf1 mo z r o N m m n z� 0 z z m x a C �u O O - m rr.SN , o ono m GOLDSMITH LAND DEVELOPMENT SERVICES MI\ACAQ\PLAN\Q6\066Q0\06600E89.drp V) m !�o z D z rn 0 z D 0 0 Z 3 z 0 z N O 4 SHEET 4 OF 4 Page 94 of 110 Back to Agenda `yam■�� � � IIIAI �_'a Issue Title: Meeting Date: Time Required: Attendees: City of Port Orchard Work Study Session Executive Summary 2021-2022 Budget Amendment February 15, 2022 15 minutes 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. OOX-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 Back to Agenda City of Port Orchard 216 Prospect Street, Port Orchard, WA 98366 (36o) 876-44070 FAX (36o) 895-9029 Agenda Staff Report Agenda Item No.: Business Item Meeting Date: Subject: Ordinance No. OXX- 22, Prepared by: Amending the 2021-2022 Biennial Budget and Exhibit Atty Routing No: A Salary Table Atty Review Date: February 22, 2021 Noah D. Crocker Finance Director 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. OXX-22, the City Council would amend the 2021 — 2022 Biennial Budget, as adopted by Ordinance No. 035-2o and amended by Ordinance No.015-21, Ordinance No. 032-21, Ordinance No. 050-21, Ordinance No. 056-21, Ordinance No. o65- 21. The proposed budget amendment is intended to provide the following: i) Fund ooi: 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 $9oo,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 oo1 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 $6o,000 Page 96 of 110 Back to Agenda _-,---f4 4) Fund io9: 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 $500,00o reflecting impact of the transfer 5) Fund 304: Street Capital Projects a. Increase transfers in from fund log 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 $239,00o reflecting impact of the transfers 6) Fund 413: Water Capital Fund a. Eliminate transfers in from Fund o01 Current Expense in the amount of $600,00o representing a portion of ARPA for 2021 no longer allocated to MW Interie at Old Clifton project b. Eliminate transfers in from Fund o01 Current Expense in the amount of $300,00o representing a portion of ARPA for 2021 no longer allocated to Well #13 c. Eliminate expenditure authority in the amount of $600,00o 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 o01 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. ooX-22, amending the 2021-2022 Biennial Budget including Exhibit A. Page 97 of 110 Back to Agenda _-b_-..f4 Relationship to Comprehensive Plan: Motion for consideration: I move to adopt Ordinance No. oXX-22, amending the 2021-2022 Biennial Budget including Exhibit A as adopted by Ordinance No. 035-2o 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. oXX-22, Exhibit A 2021-2022 Current 2021-2022 2021-2022 Amended Fund: 002 - City Street Fund (Amended Biennial Budget Biennial Budget No. Budget No. 056.21) Amendment 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 1 $ - $ 445,699 2021-2022 Current 2021-2022 2021-2022 Amended Fund: 103 - Criminal Justice (Amended Biennial Budget Biennial Budget No. Budget No. 056.21) Amendment 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 1 $ (60,000)1 $ 225,183 Page 98 of 110 Back to Agenda L . -I- . ..l 2021-2022 Current 2021-2022 2021-2022 Amended Fund: 109 - Real Estate Excise Tax (Amended Biennial Budget Biennial Budget No. Budget No. 050.21) Amendment 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 1 $ (500,000)1 $ 3,766,792 2021-2022 Current 2021-2022 2021-2022 Amended Fund: 304 - Street Capital Projects (Amended Biennial Budget Biennial Budget No. Budget No. 056.21) Amendment 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 2021-2022 Current 2021-2022 2021-2022 Amended Fund: 413 - Water Capital (Amended Biennial Budget Biennial Budget No. Budget No. 056.21) Amendment 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 1 $ - 1 $ 2,302,354 2021-2022 Current 2021-2022 2021-2022 Amended Fund: 423 - Storm Drainage Capital Facil (Amended Biennial Budget Biennial Budget No. Budget No. 056.21) Amendment XXX-2022 Beginning Fund Balance $ 99,113 $ 99,113 Revenue $ - $ - Expense $ - $ 5,200 $ 5,200 Ending Fund Balance $ 99,113 1 $ (5,200)1 $ 93,913 2021-2022 Current 2021-2022 2021-2022 Amended Fund: 433 - Sewer Capital (Amended Biennial Budget Biennial Budget No. Budget No. 056.21) Amendment 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 $ 1,410,539 1 $ 7,626,689 Page 99 of 110 Back to Agenda 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 o65-21 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 o65-21; 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 ool to Fund 002 for Crack & Seal, Lund Bridge, and Pavement Preservation WHEREAS, the City will transfer $1,410,539 of ARPA monies from Fund o01 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 log 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 $500,00o additional funding on the Bay Street Pedestrian Pathway Project; and Page 100 of 110 Back to Agenda 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 ool to Fund 413 for Water Capital Projects and reduce the expenditure authority by $900,00o 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 ool 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- 2o as amended by Ordinance's No.15-21, 032-21, 050-21,056-21 and o65-21 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 110 001 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 i $ 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 E R&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 Revenuel $ 99,754,800 1 $ 133,423,920 $ 137,948,920 $1,010,539 $ 138,959,459 Grand Total Expense I $ 99,754,800 1 $ 133,423,920 $ 137,948,920 rsi,olo,539 I $ 138,959,459 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 ,i. 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. Page 102 of 110 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 s. 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 PUBLISHED: EFFECTIVE DATE: John Clauson, Councilmember Page 103 of 110 Back to Agenda 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. Page 104 of 110 Back to Agenda. EXC-ULIVC JUIIIIIIQI y J 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 Page 105 of 110 L CoY OFROHAROi90 PORT ORCHARD POLICE DEPARTMENT SERVICE • HONOR • INTEGRITY MEMORANDUM TO: Rob Putaansuu, Mayor FROM: Matt Brown, Chief of Police SUBJECT: Incentive Pay DATE: December 20", 2021 i%j 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 Sheriffs 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. Pagel of 2 Page 106 of 110 L IC0Y OFRCHARD90 Recruiting Incentive PORT ORCHARD POLICE DEPARTMENT SERVICE • HONOR • INTEGRITY 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. Page 2 of 2 Page 107 of 110 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. Page 108 of 110 * * * * 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 Page 109 of 110 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. Page 110 of 110