HomeMy WebLinkAbout02/22/2022 - Regular - PacketCity of Port Orchard Council Meeting Agenda
February 22, 2022
6:30 p.m.
The City is conducting its public meetings remotely to prevent the spread of COVID.
The City is providing options for the public to attend through telephone, internet or
other means of remote access, and also provides the ability for persons attending
the meeting (not in-person) to hear each other at the same time. Therefore;
Remote access only
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Guiding Principles
•Are we raising the bar?
•Are we honoring the past, but not living in the past?
•Are we building connections with outside partners?
•Is the decision-making process positively impacting diversity, equity, and
inclusion?
1.CALL TO ORDER
A.Pledge of Allegiance
2.APPROVAL OF AGENDA
3.CITIZENS COMMENTS
(Please limit your comments to 3 minutes for items listed on the Agenda and that are not for a
Public Hearing. When recognized by the Mayor, please state your name for the official record. If
you are attending remotely via telephone, enter *9 from your keypad to raise your hand.)
4.CONSENT AGENDA
(Approval of Consent Agenda passes all routine items listed below, which have been distributed
to each Councilmember for reading and study. Consent Agenda items are not considered
separately unless a Councilmember so requests. In the event of such a request, the item is
returned to Business Items.)
A.Approval of Vouchers and Electronic Payments
B.Approval of Payroll and Direct Deposits
C.Adoption of an Ordinance Amending Port Orchard Municipal Code
Section 5.56.110 for Taxicabs (M. Brown) Page 4
D.Adoption of a Resolution Declaring Certain Equipment as Surplus and
Authorizing its Disposition (Wallace) Page 9
E.Excusal of Councilmember Cucciardi Due to a Personal Obligation
5.PRESENTATION
6.PUBLIC HEARING
7.BUSINESS ITEMS
Mayor:
Rob Putaansuu
Administrative Official
Councilmembers:
Mark Trenary
E/D & Tourism Committee
Utilities/Sewer Advisory Committee
Transportation Committee
KRCC-alt
Shawn Cucciardi
Finance Committee
E/D & Tourism Committee
Lodging Tax, Chair
Fred Chang
Economic Development & Tourism Committee
Land Use Committee
Transportation Committee
Jay Rosapepe
Finance Committee,
Land Use Committee
KRCC, PSRC-alt, PSRC Transpol-alt, KRCC Transpol
alt, KRCC Planpol-alt,
John Clauson
Finance Committee, Chair
Utilities/Sewer Advisory Committee
Kitsap Public Health District-alt
Cindy Lucarelli (Mayor Pro-Tempore)
Festival of Chimes & Lights Committee, Chair
Utilities/Sewer Advisory Committee,
Kitsap Economic Development Alliance
Scott Diener
Land Use Committee
Transportation Committee
Department Directors:
Nicholas Bond, AICP
Development Director
Mark Dorsey, P.E.
Director of Public Works/City Engineer
Tim Drury
Municipal Court Judge
Noah Crocker, M.B.A.
Finance Director
Matt Brown
Police Chief
Brandy Wallace, MMC, CPRO
City Clerk
Meeting Location:
Council Chambers, 3rd Floor
216 Prospect Street
Port Orchard, WA 98366
Contact us:
(360) 876-4407
cityhall@cityofportorchard.us
Please turn off cell phones during meeting and hold your questions for staff until the meeting has been adjourned.
The Council may consider other ordinances and matters not listed on the Agenda, unless specific notification period is required.
Meeting materials are available on the City’s website at: www.cityofportorchard.us or by contacting the City Clerk’s office at (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.
February 22, 2022, Meeting Agenda Page 2 of 3
A. Adoption of an Ordinance Amending the 2021-2022 Biennial Budget and Exhibit A Salary Table
(Crocker) Page 11
B. Adoption of an Ordinance Authorizing Position of Project Coordinator/Inspector (Lund) Page 21
C. Adoption of an Ordinance Approving a Contract with Kitsap County Department of Human Resources-
CDBG Program for the Lippert Avenue Sidewalk Retrofit Project (Dorsey) Page 25
D. Adoption of a Resolution Granting an Easement to the City of Bremerton for the McCormick Village
Park Water Facilities (Dorsey) Page 51
E. Adoption of a Resolution Approving a Contract with Murraysmith, Inc. for the 2023 General Sewer Plan
Update for the City’s Sanitary Sewer System and Documenting Procurement Procedures (Dorsey) Page
64
F. Adoption of a Resolution Establishing a Referral Incentive Program for Current Staff Members (Lund)
Page 98
G. Adoption of a Resolution Renaming and Designating the Active Club T-Ball Field to Honor the Late
Richard “Dick” Lyle Taute, Sr. (Wallace) Page 102
H. Adoption of a Resolution Adopting Operating Policies and Procedures for Managing City Records
(Wallace) Page 105
I. Adoption of Resolution Granting Final Plat Approval for McCormick West Division II (Bond) Page 113
J. Approval of Amendment No. 6 to Contract No. 054-18 with RH2 Engineering, Inc. for the Marina Pump
Station Rebuild Project (Dorsey) Page 148
K. Approval of a Memorandum of Understanding with the Police Guild Representing Patrol Officers
Regarding a Recruitment Incentive Program for Lateral Peace Officers (Brown) Page 163
L. Approval of an Agreement with Kitsap Homes of Compassion for Affordable Housing Funding (Archer)
Page 164
M. Approval of an Agreement with Housing Kitsap for Affordable Housing Funding (Archer) Page 175
N. Approval of the February 8, 2022, City Council Meeting Minutes Page 217
8. DISCUSSION ITEMS (No Action to be Taken)
A. Continued: Veterans Park
9. REPORTS OF COUNCIL COMMITTEES
10. REPORT OF MAYOR
11. REPORT OF DEPARTMENT HEADS
12. CITIZEN COMMENTS
(Please limit your comments to 3 minutes for any items not up for Public Hearing. When recognized by the Mayor, please state
your name for the official record. If you are attending remotely via telephone, enter *9 from your keypad to raise your hand.)
13. EXECUTIVE SESSION: Pursuant to RCW 42.30.110(1)(i) the City Council will hold an executive session. The
topic(s) and the session duration will be announced prior to the executive session.
14. CITY COUNCIL GOOD OF THE ORDER
15. ADJOURNMENT
COMMITTEE MEETINGS Date & Time Location
Please turn off cell phones during meeting and hold your questions for staff until the meeting has been adjourned.
The Council may consider other ordinances and matters not listed on the Agenda, unless specific notification period is required.
Meeting materials are available on the City’s website at: www.cityofportorchard.us or by contacting the City Clerk’s office at (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.
February 22, 2022, Meeting Agenda Page 3 of 3
nd
City of Port Orchard
216 Prospect Street, Port Orchard, WA 98366
(360) 876-4407 • FAX (360) 895-9029
Agenda Staff Report
Summary: Under RCW 81.27, Washington State law authorizes cities to adopt regulations for the licensing of
taxicab and for-hire businesses within their jurisdiction. In 1999, the City of Port Orchard codified the
requirement that applicants submit to fingerprinting by the police department. These fingerprints are not
necessary and cannot be used for licensing purposes but must be retained as appropriate under Washington
State Law. This requirement has an impact on staff time and does not create any benefit for the City.
The amended ordinance still provides for the City to regulate taxicab and for-hire licensing as before without
any impact to regular business. The removal of the fingerprinting requirement ceases a practice without
practical purpose.
Recommendation: Staff recommends the Council amend POMC 5.56.110 – Fingerprints and photographs of
driver applicant.
Relationship to Comprehensive Plan: N/A
Motion for consideration: I move to adopt the ordinance amending POMC 5.56.110 – Fingerprints and
photographs of driver applicant.
Fiscal Impact: None.
Alternatives: Not approve the amendments to POMC 5.56.110 and provide staff with direction.
Attachments: Proposed ordinance redline and final.
Page 4 of 221
ORDINANCE NO. ___
AN ORDINANCE OF THE CITY OF PORT ORCHARD, WASHINGTON,
RELATING TO TAXICAB DRIVER LICENSING; AMENDING PORT ORCHARD
MUNICIPAL CODE SECTION 5.56.110; PROVIDING FOR SEVERABILITY; AND
ESTABLISHING AN EFFECTIVE DATE.
WHEREAS, pursuant to Chapter 81.72 RCW, Washington state law authorizes cities to
adopt regulations for the licensing of taxicab businesses operating within their corporate
boundaries; and
WHEREAS, the City Council finds it is in the best interest of the residents of Port Orchard to
amend POMC 5.56.110 to remove fingerprinting requirements for taxicab driver licensing; now,
therefore,
THE CITY COUNCIL OF THE CITY OF PORT ORCHARD, WASHINGTON, DO ORDAIN AS
FOLLOWS:
SECTION 1. Port Orchard Municipal Code 5.56.110 is hereby amended to read as follows:
5.56.110 Fingerprints and pPhotographs of driver applicant.
Every applicant for a driver’s license must submit to fingerprinting by the chief or designee
and must file with their application two recent photographs of himself or herself of a size
designated by the clerk and which may be easily attached to their license, one of which shall be
so attached when issued; the other shall be filed with the application. The photograph shall be
so attached to the license that it cannot be removed and another photograph substituted without
probability of detection. Each licensed driver shall, on demand of the license inspector, police
officer or a passenger, exhibit their license and photograph for inspection. (Ord. 1777 § 11, 1999).
***
SECTION 2. 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.
SECTION 3. This ordinance shall be posted and published as required by law, and shall
be effective and in full force five (5) days following publication. A summary of this ordinance may
be published in lieu of publishing the ordinance in its entirety.
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.
Page 5 of 221
Ordinance No. 0XX
Page 2 of 2
Robert Putaansuu, Mayor
ATTEST:
Brandy Wallace, MMC, City Clerk
APPROVED AS TO FORM: Sponsored by:
Charlotte A. Archer, City Attorney Shawn Cucciardi, Councilmember
Page 6 of 221
ORDINANCE NO. ____
AN ORDINANCE OF THE CITY OF PORT ORCHARD, WASHINGTON,
RELATING TO TAXICAB DRIVER LICENSING; AMENDING PORT ORCHARD
MUNICIPAL CODE SECTION 5.56.110; PROVIDING FOR SEVERABILITY; AND
ESTABLISHING AN EFFECTIVE DATE.
WHEREAS, pursuant to Chapter 81.72 RCW, Washington state law authorizes cities to
adopt regulations for the licensing of taxicab businesses operating within their corporate
boundaries; and
WHEREAS, the City Council finds it is in the best interest of the residents of Port Orchard to
amend POMC 5.56.110 to remove fingerprinting requirements for taxicab driver licensing; now,
therefore,
THE CITY COUNCIL OF THE CITY OF PORT ORCHARD, WASHINGTON, DO ORDAIN AS
FOLLOWS:
SECTION 1. Port Orchard Municipal Code 5.56.110 is hereby amended to read as follows:
5.56.110 Photographs of driver applicant.
Every applicant for a driver’s license must file with their application two recent
photographs of himself or herself of a size designated by the clerk and which may be easily
attached to their license, one of which shall be so attached when issued; the other shall be filed
with the application. The photograph shall be so attached to the license that it cannot be
removed and another photograph substituted without probability of detection. Each licensed
driver shall, on demand of the license inspector, police officer or a passenger, exhibit their license
and photograph for inspection. (Ord. 1777 § 11, 1999).
***
SECTION 2. 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.
SECTION 3. This ordinance shall be posted and published as required by law, and shall
be effective and in full force five (5) days following publication. A summary of this ordinance may
be published in lieu of publishing the ordinance in its entirety.
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.
Page 7 of 221
Ordinance No. ___
Page 2 of 2
Robert Putaansuu, Mayor
ATTEST:
Brandy Wallace, MMC, City Clerk
APPROVED AS TO FORM: Sponsored by:
Charlotte A. Archer, City Attorney Shawn Cucciardi, Councilmember
Page 8 of 221
City of Port Orchard
216 Prospect Street, Port Orchard, WA 98366
(360) 876-4407 • FAX (360) 895-9029
Agenda Staff Report
Agenda Item No.: Consent Agenda 4D Meeting Date: February 22, 2022
Subject: Adoption of a Resolution Declaring Certain Prepared by: Brandy Wallace, MMC
Equipment as Surplus and Authorizing its City Clerk
Disposition Atty Routing No.: N/A
Atty Review Date: N/A
Summary: Assets of the City that are no longer useable, no longer of value to the C ity, or are surplus to City
needs may be removed from City ownership, sold, or in any other way disposed with a declaration of surplus
by the City Council.
Staff is asking the Council to surplus a 1993 Chevy HB3500, belonging to the sewer fund. The Finance
department has estimated the current value of $0.00. In addition a 2011 Ford Crown Victoria and 2004 Jeep
Liberty, purchased from the General Fund. One belonged to the police department and the
other Community Development. The Finance department has estimated their current value of $0.00.
Although the City’s internal asset value of the item has been determined to be of no value, any money from
the sale of s urplus property is deposited into the Fund which owned the item. When disposal is to the
general public throug h direct s ale, sealed bid or auc tion, final determination of value shall be the highest
responsible bid or offer. The City may transfer a surplus asset to another public agen cy upon written
request and a determination that it is in the public interest. Staff will dispose the item in a manner that
reflects the best interest of the City.
Recommendation: Staff recommends adoption of a Resolution declaring the vehicles as surplus.
Relationship to Comprehensive Plan: N/A
Motion for consideration: I move to adopt a Resolution declaring the 1993 Chevy HB3500, 2011 Ford
Crown Victoria, and the 2004 Jeep Liberty vehicles as surplus and allowing for its disposition in a manner
that reflects the best interest of the City.
Fiscal Impact: Money received from the disposition of surplus equipment is deposited in the Fund of
ownership.
Alternatives: Do not adopt.
Attachments: Resolution
Page 9 of 221
RESOLUTION NO. _____
A RESOLUTION OF THE CITY OF PORT ORCHARD, WASHINGTON, DECLARING
CERTAIN EQUIPMENT AS SURPLUS AND AUTHORIZING ITS DISPOSITION.
WHEREAS, certain personal property owned by various Funds of the City of Port
Orchard has become surplus to the needs of the City; and
WHEREAS, certain sewer utility equipment owned by the City of Port Orchard has
become surplus to the needs of the City Utilities; and
WHEREAS, the City Council has determined that the present fair market value of the
personal property and utility equipment items are $0.00; and
WHEREAS, the City Council has, pursuant to the requirements of POMC 1.30.020,
considered the possible future requirements of the City, the present value of the personal
property and utility equipment, the likelihood of locating a buyer, possible
intergovernmental cooperation, and the general welfare of the citizens of Port Orchard in
determining whether it is in the best interests of the City to dispose of such personal
property and utility equipment; and
WHEREAS, the City Council desires to dispose of said personal property and sewer
utility equipment in the best interests of the City, now, therefore;
THE CITY COUNCIL OF THE CITY OF PORT ORCHARD, WASHINGTON, HEREBY RESOLVES
AS FOLLOWS:
THAT: The property described below is declared as a surplus to the needs of the
City. Staff is instructed to dispose of the items in a manner that reflects the best
interest of the City:
Items
1993 Chevy HB3500
2011 Ford Crown Victoria
2004 Jeep Liberty
VIN#
1GBKC34NXPJ106326
2FABP7BU1BX139733
1J4GL48K55W555575
PASSED by the City Council of the City of Port Orchard, SIGNED by the Mayor and attested
by the City Clerk in authentication of such passage this 22nd day of February 2022.
Robert Putaansuu, Mayor
ATTEST:
Brandy Wallace, MMC, City Clerk
Page 10 of 221
City of Port Orchard
216 Prospect Street, Port Orchard, WA 98366
(360) 876-4407 • FAX (360) 895-9029
Agenda Staff Report
Agenda Item No.: Business Item 7A Meeting Date: February 22, 2022
Subject: Adoption of an Ordinance Prepared by: Noah D. Crocker
Amending the 2021-2022 Biennial Finance Director
Budget and Exhibit A Salary Table Atty Routing No.: 366922-0007 - Finance
Atty Review Date: February 13, 2022
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 a Budget Amendment. Exhibit A of the 2021-2022 Biennial Budget, as adopted, identifies the
Personnel positions of the City as well as pay ranges.
By this Ordinance, the City Council would amend the 2021 – 2022 Biennial Budget, as adopted by
Ordinance No. 035-20 and amended by Ordinance No.015-21, Ordinance No. 032-21, Ordinance No.
050-21, Ordinance No. 056-21, Ordinance No. 065-21.
The proposed budget amendment is intended to provide the following:
1)Fund 001: Current Expense Fund
a. Increase transfers out to Fund 002 City Street in the amount of $239,000 for Crack & Seal,
Lund Bridge, and Pavement Preservation
b.Increase transfers out to Fund 433 Sewer Capital in the amount of $1,410,539,
representing that the City’s full payment of funding from the American Rescue Plan Act
(ARPA) for 2021 is being allocated to Marina Pump Station
c.Eliminate transfers out to Fund 413 Water Capital in the amount of $900,000
representing a portion of ARPA for 2021 no longer allocated to Well #13 and MW Interie
projects
d.Reduce 2022 Ending Fund balance by $749,539 reflecting the impact of the transfers
2)Fund 002: City Street Fund
a. Increase transfers in from Fund 001 in the amount of $239,000 for Crack
& Seal, Lund Bridge, and Pavement Preservation
b.Eliminate transfers in from Fund 304 in the amount of $239,000 for Crack
& Seal, Lund Bridge, and Pavement Preservation
c.No impact to fund balance
3)Fund 103: Criminal Justice Fund
a. Increase expenditure authority to purchase police helmets in the amount of $60,000
b.Reduce 2022 ending fund balance by $60,000
Page 11 of 221
Staff Report 7A
Page 2 of 4
4) Fund 109: Real Estate Excise Tax Fund
a. Increase transfer out to Fund 304 for the Bay Street Pedestrian Pathway project in the
amount of $500,000 for the project including fully funding the ROW services contract
previously authorized
b. Reduction of 2022 ending fund balance by $500,000 reflecting impact of the transfer
5) Fund 304: Street Capital Projects
a. Increase transfers in from fund 109 for the Bay Street Pedestrian Pathway project in the
amount of $500,000
b. Increase expenditure authority for the Bay Street Pedestrian Pathway project in the
amount of approximately $500,000
c. Eliminate transfers out to Fund 002 in the amount of $239,000 for Crack
& Seal, Lund Bridge, and Pavement Preservation
d. Increase of 2022 ending fund balance by $239,000 reflecting impact of the transfers
6) Fund 413: Water Capital Fund
a. Eliminate transfers in from Fund 001 Current Expense in the amount of $600,000
representing a portion of funding from ARPA for 2021 no longer allocated to MW
Interie at Old Clifton project
b. Eliminate transfers in from Fund 001 Current Expense in the amount of $300,000
representing a portion of ARPA funding for 2021 no longer allocated to Well #13
c. Eliminate expenditure authority in the amount of $600,000 for longer allocated MW
Interie at Old Clifton project
d. Eliminate expenditure authority in the amount of $300,000 for longer allocated to
Well #13
e. No impact to fund balance
7) Fund 423: Storm Drainage Capital Fund
a. Increase expenditure authority in the amount of $5,200 for the appraisal services
rendered under C073-21.
b. Reduce 2022 ending fund balance by $5,200
8) Fund 433: Sewer Capital
a. Increase transfers in from Fund 001 Current Expense in the amount of $1,410,539
representing the full payment of the City’s allocated ARPA funding for 2021 being
allocated to Marina Pump Station
b. Increase ending fund balance in the amount of $1,410,539
9) Exhibit A
a. Add 2 FTE to the Patrol Officers position. The additional FTE count will provide the
police department the ability to recruit and hire in a more flexible and timely manner
as officers retire and leave the city. It will provide some overlap in personnel to
support coverage and ensure adequate officers are employed with the City.
b. Add 1 FTE of a Project Coordinator/Inspector position for the Public Works
Department.
Page 12 of 221
Staff Report 7A
Page 3 of 4
Recommendation: The Finance Director recommends adoption of an ordinance, amending the
2021–2022 Biennial Budget including Exhibit A.
Relationship to Comprehensive Plan: N/A
Motion for consideration: I move to adopt an ordinance, amending the 2021-2022 Biennial
Budget including Exhibit A, as adopted by Ordinance No. 035-20 and as amended.
Fiscal Impact: A future financial budget amendment may be needed prior to the end of the
biennium.
Alternatives: Do not authorize and provide alternative guidance
Attachments: Ordinance and Exhibit A.
Fund: 001 - Current Expense
2021-2022 Current
(Amended Biennial
Budget No. 056.21)
2021-2022
Budget
Amendment
2021-2022 Amended
Biennial Budget No.
XXX-2022
Beginning Fund Balance 6,952,862$ -$ 6,952,862$
Revenue 28,576,339$ -$ 28,576,339$
Expense 32,358,835$ 749,539$ 33,108,374$
Ending Fund Balance 3,170,366$ (749,539)$ 2,420,827$
Fund: 002 - City Street Fund
2021-2022 Current
(Amended Biennial
Budget No. 056.21)
2021-2022
Budget
Amendment
2021-2022 Amended
Biennial Budget No.
XXX-2022
Beginning Fund Balance 1,479,291$ -$ 1,479,291$
Revenue 6,121,880$ -$ 6,121,880$
Expense 7,155,472$ -$ 7,155,472$
Ending Fund Balance 445,699$ -$ 445,699$
Fund: 103 - Criminal Justice
2021-2022 Current
(Amended Biennial
Budget No. 056.21)
2021-2022
Budget
Amendment
2021-2022 Amended
Biennial Budget No.
XXX-2022
Beginning Fund Balance 377,608$ -$ 377,608$
Revenue 491,900$ -$ 491,900$
Expense 584,325$ 60,000$ 644,325$
Ending Fund Balance 285,183$ (60,000)$ 225,183$
Governmental Funds
(Operating, Stabilization, Special, Debt Service)
Page 13 of 221
Staff Report 7A
Page 4 of 4
Fund: 109 - Real Estate Excise Tax
2021-2022 Current
(Amended Biennial
Budget No. 050.21)
2021-2022
Budget
Amendment
2021-2022 Amended
Biennial Budget No.
XXX-2022
Beginning Fund Balance 3,266,592$ -$ 3,266,592$
Revenue 2,927,400$ -$ 2,927,400$
Expense 1,927,200$ 500,000$ 2,427,200$
Ending Fund Balance 4,266,792$ (500,000)$ 3,766,792$
Fund: 304 - Street Capital Projects
2021-2022 Current
(Amended Biennial
Budget No. 056.21)
2021-2022
Budget
Amendment
2021-2022 Amended
Biennial Budget No.
XXX-2022
Beginning Fund Balance 1,732,515$ -$ 1,732,515$
Revenue 5,546,333$ 500,000$ 6,046,333$
Expense 6,539,400$ 261,000$ 6,800,400$
Ending Fund Balance 739,448$ 239,000$ 978,448$
Governmental
Capital Construction
Fund: 413 - Water Capital
2021-2022 Current
(Amended Biennial
Budget No. 056.21)
2021-2022
Budget
Amendment
2021-2022 Amended
Biennial Budget No.
XXX-2022
Beginning Fund Balance 1,382,354$ 1,382,354$
Revenue 6,037,400$ (900,000)$ 5,137,400$
Expense 5,117,400$ (900,000)$ 4,217,400$
Ending Fund Balance 2,302,354$ -$ 2,302,354$
Fund: 423 - Storm Drainage Capital Facil
2021-2022 Current
(Amended Biennial
Budget No. 056.21)
2021-2022
Budget
Amendment
2021-2022 Amended
Biennial Budget No.
XXX-2022
Beginning Fund Balance 99,113$ 99,113$
Revenue -$ -$
Expense -$ 5,200$ 5,200$
Ending Fund Balance 99,113$ (5,200)$ 93,913$
Fund: 433 - Sewer Capital
2021-2022 Current
(Amended Biennial
Budget No. 056.21)
2021-2022
Budget
Amendment
2021-2022 Amended
Biennial Budget No.
XXX-2022
Beginning Fund Balance 2,369,050$ 2,369,050$
Revenue 18,197,100$ 1,410,539$ 19,607,639$
Expense 14,350,000$ -$ 14,350,000$
Ending Fund Balance 6,216,150$ 1,410,539$ 7,626,689$
Enterprise Funds (Capital)
Page 14 of 221
ORDINANCE NO. ___
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 NOS.
015-21, 032-21, 050-21, 056-21, and 065-21 TO RECOGNIZE
EXPENDITURES AND REVENUES NOT ANTICIPATED AT THE TIME
OF THE ADOPTION OF THE 2021–2022 BIENNIAL BUDGET
INCLUDING THE ADDITION OF TWO FULL TIME EQUIVALENT
POSITIONS FOR THE POLICE DEPARTMENT AND A NEW FULL
TIME EQUIVALENT POSITION FOR THE PUBLIC WORKS
DEPARTMENT; PROVIDING FOR TRANSMITTAL TO STATE;
PROVIDING FOR PUBLICATION; AND SETTING AN EFFECTIVE
DATE.
WHEREAS, the City of Port Orchard adopted its 2021 – 2022 Biennial Budget via
Ordinance No. 035-20, which was previously amended by Ordinance Nos. 015-21, 032-21, 050-
21, 056-21 and 065-21; and
WHEREAS, the City desires to keep current on budget amendments; and
WHEREAS, it is necessary to consider adjustments to accounts and/or funds by means of
appropriation adjustments that could not have been anticipated at the time of passage of the
2021 – 2022 Biennial Budget; and
WHEREAS, by this Ordinance, the City Council amends the 2021-2022 Biennial Budget to
accommodate necessary adjustments as set forth herein; and
WHEREAS, the City will transfer $239,000 from Fund 001 to Fund 002 for Crack & Seal,
Lund Bridge, and Pavement Preservation; and
WHEREAS, the City will transfer $1,410,539 of funds allocated to the City through the
American Rescue Plan Act (ARPA) from Fund 001 to Fund 433 for Sewer Capital Projects and
eliminate the previously authorized transfers of $900,000 of ARPA monies for Water Capital
Projects; and
WHEREAS, the City will increase expenditure authority for Fund 103 to make necessary
police equipment purchases in the amount of $60,000; and
WHEREAS, the City Council has previously approved Contract C072-18 for Tierra Right of
Way Services with which requires additional funding from fund 109 in the amount of
approximately $500,000 to fully fund this contract as well as additional expenses for the
project; and
Page 15 of 221
Ordinance No. ___
Page 2 of 4
WHEREAS, the City will transfer up to $500,000 from fund 109 to fund 304 for the Bay
Street Pedestrian Pathway Project and will spend the $500,000 additional funding on the Bay
Street Pedestrian Pathway Project; and
WHEREAS, the City will eliminate transfers out of $239,000 from Fund 304 to Fund 002
for Crack & Seal, Lund Bridge, and Pavement Preservation; and
WHEREAS, the City will eliminate $900,000 of ARPA monies being transferred from Fund
001 to Fund 413 for Water Capital Projects and reduce the expenditure authority by $900,000
as appropriate; and
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 $5,200
to fully fund this contract; and
WHEREAS, the City desires to fund two additional Full Time Equivalent (2 FTE) for Patrol
Officer positions; and
WHEREAS, the City desires to fund one Full Time Equivalent (1 FTE) of a newly create
Project Coordinator/Inspector Position; and
WHEREAS, the City Council has considered the proposed budget amendments and finds
that amendments authorized by this Ordinance are consistent with applicable laws and financial
policies, and further the public's health, safety and welfare; now, therefore,
THE CITY COUNCIL OF THE CITY OF PORT ORCHARD, WASHINGTON, DO ORDAIN AS
FOLLOWS:
SECTION 1. The 2021-2022 Biennial Budget and enabling Ordinance No.035-20, as
amended by Ordinances Nos. 15-21, 032-21, 050-21,056-21 and 065-21 is hereby amended to
reflect the following:
Page 16 of 221
Ordinance No. ___
Page 3 of 4
Fund No. Fund Name Type Ordinance-035-20 Ordinance-050-21 Ordinance-056-21 Adjustment Ordinance-XXX-22
001 Current Expense Fund Revenue 26,069,100$ 33,279,201$ 35,529,201$ -$ 35,529,201$
Expense 26,069,100$ 33,279,201$ 35,529,201$ -$ 35,529,201$
002 City Street Revenue 5,131,900$ 7,601,171$ 7,601,171$ -$ 7,601,171$
Expense 5,131,900$ 7,601,171$ 7,601,171$ -$ 7,601,171$
003 Stabilization Revenue 2,300,000$ 2,693,687$ 2,693,687$ -$ 2,693,687$
Expense 2,300,000$ 2,693,687$ 2,693,687$ -$ 2,693,687$
103 Criminal Justice Revenue 760,900$ 869,508$ 869,508$ -$ 869,508$
Expense 760,900$ 869,508$ 869,508$ -$ 869,508$
104 Special Investigative Unit Revenue 102,000$ 105,797$ 105,797$ -$ 105,797$
Expense 102,000$ 105,797$ 105,797$ -$ 105,797$
107 Community Events Revenue 400,000$ 412,002$ 412,002$ -$ 412,002$
Expense 400,000$ 412,002$ 412,002$ -$ 412,002$
108 Paths & Trails Revenue 12,900$ 13,096$ 13,096$ -$ 13,096$
Expense 12,900$ 13,096$ 13,096$ -$ 13,096$
109 Real Estate Excise Tax Revenue 4,854,000$ 6,193,992$ 6,193,992$ -$ 6,193,992$
Expense 4,854,000$ 6,193,992$ 6,193,992$ -$ 6,193,992$
111 Impact Fee Revenue 2,282,500$ 4,006,467$ 4,006,467$ -$ 4,006,467$
Expense 2,282,500$ 4,006,467$ 4,006,467$ -$ 4,006,467$
206 Bond Redemption Fund Revenue 598,200$ 598,200$ 598,200$ -$ 598,200$
Expense 598,200$ 598,200$ 598,200$ -$ 598,200$
302 Capital Construction Revenue 620,000$ 3,606,707$ 5,881,707$ -$ 5,881,707$
Expense 620,000$ 3,606,707$ 5,881,707$ -$ 5,881,707$
304 Street Capital Projects Revenue 4,328,100$ 7,278,848$ 7,278,848$ 500,000$ 7,778,848$
Expense 4,328,100$ 7,278,848$ 7,278,848$ 500,000$ 7,778,848$
401 Water-Sewer Utilities Revenue -$ -$ -$ -$ -$
Expense -$ -$ -$ -$ -$
403 Water-Sewer Cumulative Reserve Revenue -$ -$ -$ -$ -$
Expense -$ -$ -$ -$ -$
411 Water - Operations Revenue 8,504,400$ 9,694,063$ 9,694,063$ -$ 9,694,063$
Expense 8,504,400$ 9,694,063$ 9,694,063$ -$ 9,694,063$
412 Water - Stabilization Revenue 917,000$ 950,216$ 950,216$ -$ 950,216$
Expense 917,000$ 950,216$ 950,216$ -$ 950,216$
413 Water - Capital Projects Revenue 6,964,200$ 7,419,754$ 7,419,754$ (900,000)$ 6,519,754$
Expense 6,964,200$ 7,419,754$ 7,419,754$ (900,000)$ 6,519,754$
414 Water - Debt Service Revenue 840,250$ 840,250$ 840,250$ -$ 840,250$
Expense 840,250$ 840,250$ 840,250$ -$ 840,250$
421 Storm Drainage - Operations Revenue 5,076,900$ 5,352,120$ 5,352,120$ -$ 5,352,120$
Expense 5,076,900$ 5,352,120$ 5,352,120$ -$ 5,352,120$
422 Storm Drainage - Stabilization Revenue 503,300$ 533,931$ 533,931$ -$ 533,931$
Expense 503,300$ 533,931$ 533,931$ -$ 533,931$
423 Storm Drainage - Capital Projects Revenue 30,100$ 99,113$ 99,113$ -$ 99,113$
Expense 30,100$ 99,113$ 99,113$ -$ 99,113$
424 Storm Drainage - Debt Service Revenue 355,300$ 355,300$ 355,300$ -$ 355,300$
Expense 355,300$ 355,300$ 355,300$ -$ 355,300$
431 Sewer - Operations Revenue 12,659,200$ 13,711,301$ 13,711,301$ -$ 13,711,301$
Expense 12,659,200$ 13,711,301$ 13,711,301$ -$ 13,711,301$
432 Sewer - Stabilization Revenue 1,355,050$ 1,422,016$ 1,422,016$ -$ 1,422,016$
Expense 1,355,050$ 1,422,016$ 1,422,016$ -$ 1,422,016$
433 Sewer - Capital Projects Revenue 9,612,100$ 20,566,150$ 20,566,150$ 1,410,539$ 21,976,689$
Expense 9,612,100$ 20,566,150$ 20,566,150$ 1,410,539$ 21,976,689$
434 Sewer - Debt Service Revenue 550,000$ 550,000$ 550,000$ -$ 550,000$
Expense 550,000$ 550,000$ 550,000$ -$ 550,000$
500 ER&R Revenue 4,927,400$ 5,271,030$ 5,271,030$ -$ 5,271,030$
Expense 4,927,400$ 5,271,030$ 5,271,030$ -$ 5,271,030$
Grand Total Revenue 99,754,800$ 133,423,920$ 137,948,920$ 1,010,539$ 138,959,459$
Grand Total Expense 99,754,800$ 133,423,920$ 137,948,920$ 1,010,539$ 138,959,459$
2021-2022 Biennial Budget
Exhibit A to the 2021 – 2022 Biennial Budget is amended as shown on the Exhibit A
attached hereto and incorporated herein by this reference.
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.
Page 17 of 221
Ordinance No. ___
Page 4 of 4
SECTION 3. Severability. If any section, sentence, clause or phrase of this ordinance
should be held to be invalid or unconstitutional by a court of competent jurisdiction, such
invalidity or unconstitutionality shall not affect the validity of constitutionality of any other
section, sentence, clause or phrase of this ordinance.
SECTION 4. Corrections. Upon approval of the city attorney, the city clerk and the
codifiers of this ordinance are authorized to make necessary technical corrections to this
ordinance, including, without limitation, the correction of clerical errors; references to other
local, state, or federal laws, codes, rules, or regulations; or section/subsection numbering.
SECTION 5. This Ordinance shall be in full force and effect five (5) days after posting and
publication as required by law. A summary of this Ordinance may be published in lieu of the
entire ordinance, as authorized by State Law.
PASSED by the City Council of the City of Port Orchard, APPROVED by the Mayor and
attested by the Clerk in authentication of such passage this 22nd day of February 2022.
Rob Putaansuu, Mayor
ATTEST:
Brandy Wallace, MMC, City Clerk
APPROVED AS TO FORM: SPONSOR:
Charlotte A. Archer, City Attorney John Clauson, Councilmember
PUBLISHED:
EFFECTIVE DATE:
Page 18 of 221
2/17/2022 9:10 AM
Elected Officials Positions Wages
Mayor 1 Annual 114,563.07
Council 7 Monthly 1,000
Total Elected 8.00
Personnel Positions FTE Minimum Maximum
City Clerk 1 46.99 54.48
Chief of Police 1 69.93 81.09
Community Development Director 1 65.18 75.59
Finance Director 1 65.18 75.59
Human Resources Manager 1 48.82 56.62
Public Works Director/City Engineer 1 65.18 75.59
Total Mayoral Direct Reports 6.00
Deputy City Clerk 1 31.68 36.72
HR Specialist 1 30.19 35.01
Office Assistant II - Admin 0 25.67 29.78
Total Administration 2.00
Assistant Finance Director 1 48.82 56.62
Accounting Assistant I 1 24.56 28.50
Accounting Assistant II 4 28.58 33.13
Accounting Assistant III 2 33.32 38.65
Accounting Assistant III / IT Specialist 1 34.52 40.02
Network Administrator 1 43.27 50.19
IT Support Specialist 1 34.31 39.78
Total Finance/IT 11.00
Permit Center Manager 1 36.68 42.54
Permit Tech (1FT)1 28.76 33.35
Permit Clerk (2FT)2 25.67 29.78
Associate Planner 1 37.73 43.76
Senior Planner 2 41.64 48.29
Assistant Planner 1 30.19 35.01
Building Inspector 1 35.43 41.09
Building Official 1 44.86 52.02
Code Enforcement Officer 1 34.52 40.02
Total Community Development 11.00
Municipal Court Judge 0.6 Annual 114,072.00
Court Administrator 1 48.82 56.62
Lead Clerk 1 29.46 35.21
Court Clerk 2.6 24.89 29.72
Total Judicial 5.20
Deputy Police Chief 1 60.93 70.68
1 27.26 31.62
3.7 24.78 29.58
Total Police Department 30.70
Utilities Compliance Specialist 1 34.52 40.02
1 39.31 45.59
Public Works Procurement Specialist 1 36.68 42.54
Total Public Works 32.00
Grand Totals 97.90
Personnel Position Listing
Page 19 of 221
2/17/2022 9:09 AM
Elected Officials Positions Wages
Mayor 1 Annual 114,563.07
Council 7 Monthly 1,000
Total Elected 8.00
Personnel Positions FTE Minimum Maximum
City Clerk 1 46.99 54.48
Chief of Police 1 69.93 81.09
Community Development Director 1 65.18 75.59
Finance Director 1 65.18 75.59
Human Resources Manager 1 48.82 56.62
Public Works Director/City Engineer 1 65.18 75.59
Total Mayoral Direct Reports 6.00
Deputy City Clerk 1 31.68 36.72
HR Specialist 1 30.19 35.01
Office Assistant II - Admin 0 25.67 29.78
Total Administration 2.00
Assistant Finance Director 1 48.82 56.62
Accounting Assistant I 1 24.56 28.50
Accounting Assistant II 4 28.58 33.13
Accounting Assistant III 2 33.32 38.65
Accounting Assistant III / IT Specialist 1 34.52 40.02
Network Administrator 1 43.27 50.19
IT Support Specialist 1 34.31 39.78
Total Finance/IT 11.00
Permit Center Manager 1 36.68 42.54
Permit Tech (1FT)1 28.76 33.35
Permit Clerk (2FT)2 25.67 29.78
Associate Planner 1 37.73 43.76
Senior Planner 2 41.64 48.29
Assistant Planner 1 30.19 35.01
Building Inspector 1 35.43 41.09
Building Official 1 44.86 52.02
Code Enforcement Officer 1 34.52 40.02
Total Community Development 11.00
Municipal Court Judge 0.6 Annual 114,072.00
Court Administrator 1 48.82 56.62
Lead Clerk 1 29.46 35.21
Court Clerk 2.6 24.89 29.72
Total Judicial 5.20
Deputy Police Chief 1 60.93 70.68
Community Health Navigator 1 34.85 40.40
Public Service Officer / Parking
Enforcement Officer (2 PT)1 27.26 31.62
3.7 24.78 29.58
Total Police Department 30.70
Utilities Compliance Specialist 1 34.52 40.02
1 39.31 45.59
Total Public Works 32.00
Grand Totals 94.90Grand Totals 97.90
Personnel Position Listing
Page 20 of 221
City of Port Orchard
216 Prospect Street, Port Orchard, WA 98366
(360) 876-4407 • FAX (360) 895-9029
Agenda Staff Report
Summary: As the City of Port Orchard continues to see substantial growth and development, existing staff
is struggling to balance the workload demands of multiple simultaneous projects. In particular, the Public
Works engineering department has several high visibility and important projects impacting City
infrastructure that need more attention that current staff has available.
Staff’s recommendation to City Council is the approval of a position of Project Coordinator/Inspector that
will expand the Public Works Division’s capacity to deliver City projects and support other aspects of the
engineering team’s work by allowing existing staff to focus on their primary functions.
The Council previously adopted Ordinance 008-20, which delegates authority to the Mayor to establish
and amend job descriptions, provided they are consistent with the general qualifications and duties
assigned by the Council. Consistent with that authorization, the Ordinance includes a summary of general
qualifications and duties for the newly proposed position.
Recommendation: Staff recommends adoption of an Ordinance establishing a new position and approving
the general qualifications and duties for the new position of Project Coordinator/Inspector.
Relationship to Comprehensive Plan: N/A
Motion for consideration: “I move to adopt an Ordinance authorizing the creation of a new position titled
Project Coordinator/Inspector and establishing general qualifications and duties and authorizing the
Mayor to develop the job description consistent with the Ordinance.”
Fiscal Impact: To be included in the 2021-22 budget amendment also proposed on the council’s agenda
tonight
Alternatives: Do not approve the position summary and provide alternative guidance.
Attachments: Ordinance and Appendix A, position summary for Project Coordinator/Inspector.
Page 21 of 221
ORDINANCE NO. ______
AN ORDINANCE OF THE CITY OF PORT ORCHARD, WASHINGTON,
TO AUTHORIZE NEW EMPLOYEE POSITION OF PROJECT
COORDINATOR/INSPECTOR AND ESTABLISHING GENERAL
QUALIFICATIONS AND DUTIES THEREOF; PROVIDING FOR
SEVERABILITY AND PUBLICATION; AND SETTING AN EFFECTIVE
DATE.
WHEREAS, the City of Port Orchard continues to see substantial growth and
development; and
WHEREAS, existing staff is struggling to balance the workload demands of multiple,
simultaneous high priority projects; and
WHEREAS, the Public Works engineering department has several high visibility and
important projects impacting City infrastructure that need more attention that current staff has
available; and
WHEREAS, the City has identified specific tasks and projects that could be assigned to a
newly created position; and
WHEREAS, the 2021-2022 budget amendment adopted on February 22, 2022, contains
the addition of the newly created position in the Public Works Department of Project
Coordinator/Inspector and sets the rate of pay; and
WHEREAS, Ordinance 008-20 delegates authority to the Mayor to establish and amend
job descriptions provided they are consistent with the general qualification and duties assigned
by the council; and
WHEREAS, a statement of the general qualifications and duties of the new job
classification is attached hereto as Appendix A, and incorporated herein by reference; now,
therefore,
THE CITY COUNCIL OF THE CITY OF PORT ORCHARD, WASHINGTON, DO ORDAIN AS
FOLLOWS:
SECTION 1. The City Council hereby authorizes the creation of the position of Project
Coordinator/Inspector with qualifications and duties as generally provided for in Appendix A.
SECTION 2. Severability. If any section, sentence, clause or phrase of this Ordinance
should be held to be unconstitutional or unlawful by a court of competent jurisdiction, such
invalidity or unconstitutionality shall not affect the validity or constitutionality of any other
Page 22 of 221
Ordinance No. _________
Page 2 of 2
section, sentence, clause or phrase of this Ordinance.
SECTION 3. Publication. This Ordinance shall be published by an approved summary
consisting of the title.
SECTION 4. Effective Date. This Ordinance shall take effect and be in full force and effect
five days after publication, as provided by 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.
Robert Putaansuu, Mayor
ATTEST:
Brandy Wallace, MMC, City Clerk
APPROVED AS TO FORM: SPONSOR:
Charlotte A. Archer, City Attorney John Clauson, Councilmember
PUBLISHED:
EFFECTIVE DATE:
Page 23 of 221
Appendix A
Ordinance 008-20 delegates authority to the Mayor to establish and amend job description as
needed provided they are consistent with general qualifications and duties assigned by the City
Council at the time the position is created by Council.
Proposed New Position
As of 02/07/2022
Position Project Coordinator/Inspector
Department
Major Job Function and Purpose
and tracking projects and activities. This position communicates, coordinates, and collaborates with
consultants, vendors and citizens in order to ensure successful completion of projects on time and
within budget.
General Function
engineering and construction programs and projects. The Project Coordinator/Inspector prepares
plans, specifications, and estimates; manages contract services; responds to questions and inquiries
from the public, contractors, engineering professionals, and City staff. The employee will also assist
with inspecting private development projects within the City limits.
Minimum Qualifications Include*
Certification, or an Associate’s degree with five (5) years of related experience, or a Bachelor’s
degree with major course work in engineering, construction management, or closely related field
and three (3) years of experience in Civil Engineering related activities. Experience with project
management and inspection of public and private development projects, is desired. EIT or PE is
desired. A valid driver’s license is required.
Page 24 of 221
City of Port Orchard
216 Prospect Street, Port Orchard, WA 98366
(360) 876-4407 • FAX (360) 895-9029
Agenda Staff Report
Summary: By the July 23, 2021, application deadline for the Kitsap County Department of Human Services
- Community Development Block Grant (CDBG) Program, the City’s Public Works Department applied for
grant funding for the Lippert Avenue Sidewalk Retrofit Project. On March 24, 2021, the City was officially
notified that the Lippert Avenue Sidewalk Retrofit Project was approved by the Board of County
Commissioners for CDBG grant funding and would be included within the Final 2021 Kitsap County Action
Plan to the Federal Department of Housing & Urban Development (HUD.) On December 13, 2021, an
Environmental Review for Activity Assessment for the Project was completed by the Kitsap County
Department of Human Services and provided to HUD and on February 2, 2022, the City of Port Orchard
received Agency Service Agreement - Community Development Block Grant No. KC-CFDA #14.218 for the
Lippert Avenue Sidewalk Retrofit Project (Ordinance No. 004-22 Exhibit A) with a summary of the terms
and conditions as follows:
Max. Grant Amount: $254,350
Time of Performance 1/1/2022 – 6/30/2023
Funds Source CDBG-HUD
By this action, the Council would authorize the acceptance of the grant funding; project expenditures will
be submitted for separate Council approval in accordance with the City’s procurement policies.
Relationship to Comprehensive Plan: Chapter 8 – Transportation
Recommendation: Staff recommends that the City Council adopt Ordinance No. 004-22, thereby
authorizing the Mayor to execute Contract No. C034-22 (CDBG No. KC-CFDA #14.218) with the Kitsap
County Department of Human Services for the Lippert Avenue Sidewalk Retrofit Project in the grant
amount of $254,350.
Motion for Consideration: I move to adopt Ordinance No. 004-22, authorizing the Mayor to execute
Contract No. C034-22 (CDBG No. KC-CFDA #14.218) with the Kitsap County Department of Human
Services for the Lippert Avenue Sidewalk Retrofit Project in the grant amount of $254,350.
Fiscal Impact: This grant award will be added to the budgeted local funding for the Project.
Page 25 of 221
Staff Report 7C
Page 2 of 2
Alternative: Refuse Grant and provide alternative direction.
Attachment: Ordinance No. 004-22 and Exhibit A – Agreement No. KC-CFDA #14.218.
Page 26 of 221
ORDINANCE NO. 004-22
AN ORDINANCE OF THE CITY OF PORT ORCHARD, WASHINGTON,
ACCEPTING THE TERMS AND CONDITIONS FOR CONTRACT NO. C034-22
WITH THE KITSAP COUNTY DEPARTMENT OF HUMAN SERVICES –
COMMUNITY DEVELOPMENT BLOCK GRANT PROGRAM (CDBG) FOR THE
LIPPERT AVENUE SIDEWALK RETROFIT PROJECT AND AUTHORIZING THE
MAYOR TO EXECUTE THE CONTRACT; PROVIDING FOR SEVERABILITY
AND PUBLICATION; AND SETTING AN EFFECTIVE DATE.
WHEREAS, by the July 23, 2021 application deadline for the Kitsap County Department
of Human Services - Community Development Block Grant (CDBG) Program, the City’s Public
Works Department applied for grant funding for the Lippert Avenue Sidewalk Retrofit Project;
and
WHEREAS, on March 24, 2021, the City of Port Orchard Public Works Department was
officially notified that the Lippert Avenue Sidewalk Retrofit Project was approved by the Board
of County Commissioners for CDBG grant funding and would be included within the Final 2021
Kitsap County Action Plan to the Federal Department of Housing & Urban Development (HUD);
and
WHEREAS, an Environmental Review for Activity Assessment for the Project was
completed by the Kitsap County Department of Human Services and provided to HUD on
December 13, 2021; and
WHEREAS, on February 2, 2022, the City of Port Orchard received the Agency Service
Agreement - Community Development Block Grant No. KC-CFDA #14.218 for the Lippert
Avenue Sidewalk Retrofit Project, attached hereto as Exhibit A and incorporated herein by this
reference; and
WHEREAS, the Port Orchard City Council has determined it to be in the best interest of
the City to enter into Contract No. C034-22 with Kitsap County and accept the grant on the
terms and conditions stated therein for the Lippert Avenue Sidewalk Retrofit Project; now,
therefore,
THE CITY COUNCIL OF THE CITY OF PORT ORCHARD, WASHINGTON, DO ORDAIN AS
FOLLOWS:
SECTION 1. The City Council accepts the Kitsap County Department of Human Services -
Community Development Block Grant (CDBG) and authorizes the Mayor’s execution of
Contract No. C034-22 with Kitsap County (County Agreement No. KC-CFDA #14.218) for the
Lippert Avenue Sidewalk Retrofit Project.
Page 27 of 221
Ordinance No. 004-22
Page 2 of 2
SECTION 2. Severability. If any section, sentence, clause or phrase of this Ordinance
should be held to be unconstitutional or unlawful by a court of competent jurisdiction, such
invalidity or unconstitutionality shall not affect the validity or constitutionality of any other
section, sentence, clause or phrase of this Ordinance.
SECTION 3. Publication. This Ordinance shall be published by an approved summary
consisting of the title.
SECTION 4. Effective Date. This Ordinance shall take effect and be in full force and
effect five days after publication, as provided by 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.
Robert Putaansuu, Mayor
ATTEST: SPONSOR:
Brandy Wallace, MMC, City Clerk Fred Chang, Councilmember
APPROVED AS TO FORM:
Charlotte Archer, City Attorney
PUBLISHED:
EFFECTIVE DATE:
Page 28 of 221
KC- 1
Agreement No.: KC-
CFDA#: 14.218
AGENCY SERVICE AGREEMENT
COMMUNITY DEVELOPMENT BLOCK GRANT
AN AGREEMENT, by and between Kitsap County hereinafter referred to as “County”
and, City of Port Orchard hereinafter referred to as “Agency” by which the Agency agrees to
carry out specific activities under Kitsap County’s Community Development Block Grant
Program and establishing certain other terms and conditions of operation.
IN ADDITION TO THE TERMS AND CONDITIONS OF THIS AGREEMENT, the parties
acknowledge that the following attachments, which are attached to this Agreement, are
expressly incorporated by this reference.
ATTACHMENTS
Attachment A – Budget Summary
Attachment B – Certification Regarding Debarment, Suspension, and Other
Responsibility Matters
Attachment C – Certification Regarding Lobbying
IT IS MUTUALLY AGREED AS FOLLOWS:
ARTICLE I. PROJECT
SECTION 1. SCOPE OF SERVICES
The County, as recipient of a Community Development Block Grant (CDBG) from the
United States Department of Housing and Urban Development (HUD), hereby designates the
Agency to undertake, and the Agency hereby agrees to undertake the activities specifically
described in the application and summarized below:
A. General Statement
CDBG funds will be used to provide sidewalk improvements to improve accessibility and
ADA compliance along Lippert Drive, between Sidney Ave. and Pottery Ave. in the City of
Port Orchard. Grant funds will be used to pay for hard construction costs.
B. Agency Shall:
1. Provide construction start date, schedule and changes to CDBG.
2. Obtain appropriate construction permits as required and inspections.
3. Follow all requirements for compliance with Davis Bacon and related Acts, ensuring
contract with contractor contains all necessary documents and federal wage provisions.
4. Follow HUD and Block Grant office procurement requirements.
5. Notify Block Grant staff immediately of any modifications to proposed project scope or
schedule changes.
Page 29 of 221
KC- 2
6. Arrange pre-construction meeting with general contractor, the City and Block Grant staff.
7. Oversee construction, act as liaison between general contractor and Block Grant staff
for Davis-Bacon and other federal requirements.
8. Maintain required records and track relevant data to demonstrate project success
9. Submit quarterly reports and billing vouchers in a timely manner.
10. Arrange with Block Grant staff for final inspection.
11. Notify Block Grant staff as soon as possible of project completion for closeout.
SECTION 2. PROJECT DESCRIPTION
Project Details
Project Name:
Funded Amount:
Action Plan Year:
Type of Project:
Service Area:
Project Address/Location:
Eligibility
National Objective:
Basic Eligible Activity Citation:
Matrix Code:
Strategic Plan Objective and Strategy:
infrastructure, located in HUD designated
HUD Performance Measures
HUD Objective of Activity:
HUD Outcome:
Federal Contract Requirements – 2 CFR Part 200
DUNS Number:
Federal Award Identifier Number (FAIN)
Research or Development Contract:
Indirect Cost (IDC) Rate for Federal Award:
☐ ☐
☒
SECTION 3. SCHEDULE FOR COMPLETION (specific milestones)
CDBG Grant Contract Term Begins 1/1/22
NEPA Environmental Review Completed 12/13/21
Permits 3/15/22
Page 30 of 221
KC- 3
Final Plans, Specifications, and Estimate 3/15/22
Bidding 3/25/22 4/26/22
Construction 5/9/22 8/31/22
Close out/Final Inspection 9/5/22 10/31/22
Submit final invoice requesting reimbursement and contract
closeout
11/21/22 1/30/23
SECTION 4. CONDITIONAL COMMITMENT
Notwithstanding any provision of this Agreement, the parties hereto agree and
acknowledge that this Agreement does not constitute a commitment of funds or site approval,
and that such commitment of funds or approval may occur only upon satisfactory completion of
environmental reviews and receipt by the County of a release of funds from the U.S.
Department of Housing and Urban Development, if required as determined by the County, and a
notice to proceed from the County. The parties further agree that the provision of any funds to
the project is conditioned on the County’s discretionary decision to proceed with, modify or
cancel the project, based on the results of environmental reviews.
The Agency shall not undertake or commit any funds to physical or choice limiting
actions, including acquisition, demolition, movement, rehabilitation, conversions, repair or
construction prior to the environmental clearance. Violation of this Section may result in the
denial of any funds under this Agreement.
SECTION 5. TERM OF AGREEMENT
The term of this Agreement is January 1, 2022 through June 30, 2023 but may be
extended pursuant to an amendment to this Agreement as authorized in Article IV, Section 9
(Amendments to Agreement). Should additional time for auditing this project be required, in
accordance with law, this Agreement shall be deemed automatically extended until such time as
the said audit shall be completed. In any event, the term of this Agreement shall cover the
period that the Agency has control over Community Development Block Grant funds, including
program income, or shall cover the Restricted Use period, if applicable.
SECTION 6. PROGRAM REPORTING
The Agency shall submit such reports as required by the County to meet its local
obligations and its obligation to the Department of Housing and Urban Development. The
County will prescribe the report format, as well as the time and location for submission of such
reports. Required reports include, but are not limited to, the following:
(A) Quarterly reports which shall include the progress made to date, or justification for lack of
progress, in providing the services specified in Article I, Section 1 Scope of Services, of
this Agreement according to the schedule for completion in Article 1 Section 3 Schedule
for Completion of this Agreement.
(B) Quarterly reports on demographic, neighborhood residence, and income information
regarding persons assisted by the Agency through this Agreement.
Page 31 of 221
KC- 4
(C) Close out reports including a final performance report, inventory of all property acquired
or improved with CDBG funds, and final financial report, upon termination or completion
of the award.
ARTICLE II. FINANCIAL CONDITIONS
SECTION 1. BUDGET AND COMPENSATION
The County shall reimburse the Agency its allowable costs for the services identified in
this Agreement not to exceed Two hundred fifty-four thousand three hundred fifty dollars
($254,350), upon presentation of a properly executed invoice in a form approved by the County.
Such reimbursement shall constitute full and complete payment by the County under this
Agreement. Allowable costs shall mean those necessary and proper costs identified in the
Agency’s application and approved by the County, unless any or all such costs are disallowed
by the State of Washington or the United States.
Any reimbursements made under this Agreement must comply with the applicable
requirements of 2 CFR Part 200, Subpart D. The Agency may not request disbursement of
funds under this Agreement until the funds are needed for payment of eligible costs. The
amount of each request must be limited to the amount needed.
Budget Summary:
See Attachment ‘A’ for Budget Summary
Time of Payment: Payment shall be made upon receipt of reimbursement request voucher
mailed to:
Block Grant Office, Kitsap County Department of Human Services, 345 6th Street Suite
400, Bremerton, WA 98337-1869.
Where Payments Are Made: Payments shall be made to:
City of Port Orchard, 216 Prospect Street, Port Orchard, WA 98366.
The Agency shall apply the funds received from the County under this Agreement in
accordance with the Budget Summary outlined in Attachment A. Any line-item expense, by
itself or in combination with other line item expense change, equal to or greater than 10% of the
total budget amount over the life of this Agreement shall require a formal amendment to this
Agreement. Any request for a line-item expense, by itself or in combination with other line item
expense change, equal to or less than 10% of the total budget amount shall be submitted in
writing and shall specifically state the reasons for the requested increase and a justification for
the corresponding decrease in other line-item(s). All budget revision and/or amendment
requests will be reviewed and approved or denied by the County.
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SECTION 2. DOCUMENTATION OF COSTS AND OTHER FINANCIAL REPORTING
The Agency shall meet the financial management standards in 2 CFR 200 Subpart D. All
costs shall be supported by properly executed payrolls, time records, invoices, vouchers or
other official documentation, as evidence of the nature and propriety of the charges. All
accounting documents pertaining in whole or in part to this Agreement shall be clearly identified
and readily accessible, and upon reasonable notice, the County and United States shall have
the right to audit the records of the Agency as they relate to the work. The Agency shall also:
(A) Maintain an effective system of internal fiscal control and accountability for all CDBG
funds and property acquired or improved with CDBG funds, and make sure the same are
used solely for authorized purposes.
(B) Keep a continuing record of all disbursements by date, check number, amount, vendor,
description of items purchased and line item from which money was expended, as
reflected in the Agency’s accounting records. The line item notations must be
substantiated by a receipt, invoice marked “Paid,” or payroll record.
(C) Maintain payroll and financial records for a period of six (6) years after receipt of final
payment under this Agreement provided that this program has been monitored by HUD
and the annual State audit (which included the CDBG Program), has been completed. If
HUD has not completed the annual State audit, the records must be retained until such
audit has been completed.
(D) Permit inspection and audit of its records with respect to all matters authorized by this
Agreement by representatives of the County, the State Auditor, and/or the United States
at any time during normal business hours and as often as necessary.
(E) Inform the County concerning any funds allocated to the Agency, that the Agency
anticipates will not be expended during this Agreement period, and permit reassignment
of the same by the County to other agencies.
(F) Repay to the County any funds in its possession at the time of termination of this
Agreement that may be due to the County or the United States.
(G) Maintain complete records concerning the receipt and use of all program income.
Program income shall be reported on a quarterly basis on forms provided by the County.
(H) Unless stated otherwise herein, all records and reports required under this Agreement
shall be maintained for a minimum of six (6) years, or the Restricted Use period,
whichever is longer.
SECTION 3. REIMBURSEMENT
The County shall reimburse the Agency only for actual incurred costs upon presentation
of a properly executed invoice in a form approved by the County. Only those allowable costs
directly related to the Agency’s application, approved by the County shall be paid consistent with
Article II Section 2, Documentation of Costs and Other Financial Reporting. The Amount of
each request must be limited to the amount needed for payment of eligible costs.
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Notwithstanding any other provisions in this section, reimbursement for construction
contracts shall have ten percent (10%) of the payment retained until close out of funds pursuant
to Article IV, Section 12 of this Agreement.
In the event the County or United States determines any funds were expended by the
Agency for unauthorized or ineligible purposes or the expenditures constitute disallowed costs in
any other way, the County or United States may order repayment of the same. The Agency
shall remit the disallowed amount to the County within thirty (30) days of written notification of
the disallowance.
The Agency agrees that funds determined by the County to be surplus upon completion
of this Agreement will be subject to cancellation by the County.
The Agency agrees that upon expiration of this Agreement, the Agency shall transfer to
the County any CDBG funds on hand at the time of expiration and any accounts receivable
attributable to the use of CDBG funds.
The County shall be relieved of any obligation for payments if funds allocated to the
County cease to be available for any cause other than malfeasance of the County itself.
The County reserves the right to withhold payments pending timely delivery of program
reports or documents as may be required under this Agreement.
SECTION 4. PROGRAM INCOME
Use of any program income received by the Agency with CDBG funds under this
Agreement shall comply with 24 CFR 570.504(c), consistent with the provisions described as
follows:
Program Income will be returned to the County Community Development Block Grant
(CDBG) Program unless specifically authorized below:
This project shall not generate any program income.
This project may generate program income and the Agency is authorized to use program
income.
• Program income will be returned to the County CDBG Program on a monthly
basis for deposit in the County’s local account.
• The funds will be considered additional CDBG funds, subject to all conditions
applicable to the use of funds described in this Agreement and will be included
in an Action Plan and appropriated to the Agency through a contract.
Any program income on hand when this Agreement is terminated, or received after such
termination, shall be reimbursed to the County.
ARTICLE III. FEDERAL CONDITIONS
SECTION 1. BENEFIT TO LOW INCOME PEOPLE
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The activity, as described in Article I. Section 1 of this Agreement shall meet one of the
three CDBG National Objectives as stated in 24 CFR § 570.208. For activities serving
individuals or households, not less than 51% of all persons served shall be low- and moderate-
income and the individuals or households must qualify under the federal income limits as
established by HUD. Benefit to moderate income persons or households cannot be at the
exclusion of low-income persons or households. The Agency shall maintain records that clearly
document the income range and household size of the individuals or households it serves.
Furthermore, the Agency shall maintain records documenting the race/ethnicity of the individual
or household being served and if they are a female head of household.
SECTION 2. UNIFORM ADMINISTRATIVE REQUIREMENTS
(A) All agencies shall comply with the requirements set forth in 2 CFR Part 200, Uniform
Administrative Requirements, Cost Principles, and Audit Requirements for Federal Awards.
(B) All agencies are to procure audit services based on 2 CFR Part 200, Subpart F; and
(1) The Agency shall maintain its records and accounts so as to facilitate the audit
requirement and shall ensure that all contractors (performing all or part of the
services under this Agreement under a separate contract with the Agency) also
maintain auditable records.
(2) The Agency is responsible for any audit exceptions incurred by its own
organization or that of its contractors.
(3) Kitsap County reserves the right to recover from the Agency all disallowed costs
resulting from the audit.
(4) Responses to any unresolved management findings and disallowed or questioned
costs shall be included with the audit report. The Agency must respond to Kitsap
County requests for information or corrective action concerning audit issues within
thirty (30) days of the date of request.
SECTION 3. SEPARATION OF CHURCH AND STATE
If the Agency is a faith-based organization, it must comply with 24 CFR § 570.200(j) and
24 CFR § 5.109, which specify requirements for participation by faith-based organizations in
HUD programs and activities.
SECTION 4. NON-DISCRIMINATION IN EMPLOYMENT AND PURCHASING
The Agency shall comply with Executive Order 11246, as amended by Executive Order
12086 and Executive Order 13672, and the regulations issued pursuant thereto (41 CFR
Chapter 60), which provide that no person shall be discriminated against on the basis of race,
color, religion, sex, sexual orientation, gender identity, or national origin, in all phases of
employment during the performance of Federal or federally assisted construction contracts. The
Agency shall take affirmative action to ensure fair treatment in employment, upgrading,
demotion, or transfer, recruitment or recruitment advertising, layoff or termination, rates of pay,
or other forms of compensation and selection for training and apprenticeship. The Agency shall
ensure compliance with 24 CFR § 570.601. Specifically, the Agency shall ensure that
provisions as follows are included in all construction contracts awarded in excess of
$10,000 and monitor compliance:
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(A) The Contractor will, in all solicitations or advertisements for employees placed by or on
behalf of the Contractor, state that all qualified applicants will receive consideration for
employment without regard to race, color, religion, sex, sexual orientation, gender
identity, or national origin.
(B) The Contractor will send to each labor union or representative of workers with which it
had a collective bargaining agreement or other contract or understanding, a notice to be
provided by the Agency contracting officer, advising the labor union or workers’
representative of the contractor’s commitments under Section 202 of Executive Order
11246 of September 24, 1965, and shall post copies of the notice in conspicuous places
available to employees and applicants for employment.
(C) The Contractor will furnish all information and reports required by Executive Order 11246
of September 24, 1965, and by the rules, regulations, and orders of the Secretary of
Labor, or pursuant thereto, and will permit access to his books, records, and accounts by
the contracting Agency and the Secretary of Labor for purposes of investigation to
ascertain compliance with such rules, regulations, and orders.
(D) In the event of the Contractor’s noncompliance with the nondiscrimination clauses of this
Agreement or with any of such rules, regulations, or orders, this Agreement may be
cancelled, terminated or suspended in whole or in part and the Contractor may be
declared ineligible for further Government contracts in accordance with procedures
authorized in Executive Order 11246 of September 24, 1965, and such other sanctions in
Executive Order 11246 of September 24, 1965, or by rule, regulation, or order of the
Secretary of Labor, or as otherwise provided by law.
(E) The Contractor will include the provisions of Section 202 of Executive Order 11246 of
September 24, 1965, as amended in every subcontract or purchase order unless
exempted by rules, regulations, or orders of the Secretary of Labor issued pursuant to
Section 204 of executive Order 11246 of September 24, 1965, as amended so that such
provisions will be binding upon each subcontractor or vendor. The Contractor will take
such action with respect to any subcontract or purchase order as may be directed by the
Secretary of Labor as a means of enforcing such provisions including sanctions for
noncompliance; provided, however, that in the event the Contractor becomes involved in,
or is threatened with, litigation with a subcontractor or vendor as a result of such
direction, the Contractor may request the United States to enter into such litigation to
protect the interests of the United States.
SECTION 5. LOCAL EMPLOYMENT AND PURCHASING
Funding under this Agreement is subject to the requirements of Section 3 of the Housing
and Urban Development Act of 1968, as amended, 12 USC 1701u. the Agency agrees to
comply with provisions of said Section 3 and the regulations issued pursuant thereto by the
Secretary of Housing and Urban Development set forth in 24 CFR Part 135, and all applicable
rules and orders of the Department of Housing and Urban Development issued there under.
The Agency agrees that they are under no contractual or other disability which would prevent
them from complying with these requirements.
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Section 3 of the Housing and Urban Development Act of 1968 requires that to the
greatest extent feasible, opportunities for training and employment be given to lower income
residents of the project area and agreements for work in connection with the project be awarded
to business concerns which are located in or owned in substantial part by persons residing in,
the area of the project. Section 3 applies to training, employment, contracting and other
economic opportunities arising in connection with the expenditure of housing assistance and
community development assistance that is used for the following projects: 1. Housing
rehabilitation (including reduction and abatement of lead based paint hazards, but excluding
routine maintenance repair and replacement); 2. Housing construction; and 3. Other public
construction.
SECTION 6. CONFLICT OF INTEREST
The Agency must comply with the conflict-of-interest requirements set forth in 24 CFR §
570.611 and 2 CFR § 200.112, including but not limited to the specific requirements contained
herein. No member, officer, or employee of the Agency, or its designees or agents, no member
of the governing body of the locality in which the program is situated, and no other public official
of such locality or localities who exercises any function or responsibilities with respect to the
program during his tenure or for one year thereafter shall have any interest, direct or indirect, in
this Agreement or any sub-agreement hereto or the proceeds thereof. The Agency shall take
appropriate steps to ensure compliance including incorporation of the following
provision in every subcontract:
The contractor covenants that no person who presently exercises any functions or
responsibilities in connection with the Kitsap County CDBG Program will obtain a
personal or financial interest from the CDBG assisted activity. The contractor further
covenants that it presently has no interest in, nor shall it acquire any interest, direct or
indirect, either for itself or those with whom it has business, or family, which would conflict
in any manner or degree with the performance of his/her services hereunder. The
contractor further covenants that in the performance of this Agreement any potential
conflict, on the part of the contractor or its employees, will be disclosed to the Agency
and the County.
SECTION 7. DISPLACEMENT, RELOCATION, ACQUISITION AND REPLACEMENT
OF HOUSING
The Agency shall comply with the requirements relating to displacement, relocation,
acquisition and replacement of housing, outlined in 24 CFR § 570.606. The Agency shall take
all reasonable steps to minimize displacement of persons (families, individuals, businesses,
non-profit organizations and farms) as a result of activities assisted with CDBG funds. Any
action by the Agency which may result in the displacement of persons under 24 CFR § 570.606
must receive prior written approval from the County.
SECTION 8. DAVIS BACON AND RELATED ACTS
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The Agency shall comply with the requirements of 24 CFR § 570.603, and the Davis-
Bacon and Related Acts (DBRA), 40 U.S.C. 3141 et. seq., when the contract for construction,
alteration, and/or repair exceeds $2,000, or involves the rehabilitation of property with 8 units or
more, is federally assisted, and involves the employment of laborers and/or mechanics to
perform the work. The Agency shall comply with the Copeland “Anti-Kickback” Act (40 U.S.C.
3145), as supplemented by the Department of Labor regulations, 29 CFR Part 3. For any
agreement in excess of $100,000 that involves the employment of mechanics or laborers, the
Agency shall also comply with the Contract Work Hours and Safety Standards Act, 40 U.S.C.
3701-3708 and 29 CFR Part 5.
SECTION 9. LEAD BASED PAINT
The Agency shall comply with HUD Lead-Based Regulations (24 CFR Part 35, Subparts
A, B, J, K and R), which require elimination, as far as practical, of immediate hazards, due to the
presence of paint in residential structures which may contain lead to which children under six
years of age may be exposed.
SECTION 10. DISCRIMINATION PROHIBITED
(A) In performing under this Agreement, the Agency may not discriminate on a
prohibited basis and must comply with 24 CFR § 570.602 and with 24 CFR Part 6,
which sets forth policies and procedures prohibiting discrimination on the basis of
race, color, national origin, religion or sex in programs and activities funded with
federal financial assistance, 24 CFR Part 8, which sets forth policies and
procedures prohibiting discrimination on the basis of disability in programs and
activities funded with federal financial assistance, and 24 CFR Part 146, which
sets forth policies and procedures prohibiting discrimination on the basis of age in
programs and activities funded with federal financial assistance.
(B) Any authorized Agency subcontract (or other assignment of rights or delegation of duties)
must include appropriate and legally binding safeguards against discrimination consistent
with the requirements of this section.
SECTION 11. ARCHITECTURAL BARRIERS ACT/AMERICANS WITH DISABILITIES ACT
The Agency shall meet the requirements, where applicable, of the Architectural Barriers
Act and the Americans with Disabilities Act, as set forth in 24 CFR § 570.614. A building or
facility designed, constructed, or altered with funds allocated or reallocated under the CDBG
program after December 11, 1995 and that meets the definition of “residential structure” as
defined in 24 CFR Part 40.2 or the definition of “building” as defined in 41 CFR Part 101-
19.602(a) is subject to the requirements of the Architectural Barriers Act of 1968 (42 USC 4151-
4157) and shall comply with the Uniform Federal Accessibility Standards (Appendix A to 24 CFR
Part 40 for residential structures, and Appendix A to 41 CFR Part 101-19, Subpart 101-19.6, for
general type buildings). The Americans with Disabilities Act (“ADA”) (42 USC 12131; 47 USC
155, 201, 218 and 255) requires that the design and construction of facilities for first occupancy
after January 26, 1993 must include measures to make them readily accessible and usable by
individuals with disabilities. The ADA further requires the removal of architectural barriers and
communication barriers that are structural in nature in existing facilities, where such removal is
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readily achievable -- that is, easily accomplishable and able to be carried out without much
difficulty or expense.
SECTION 12. FLOOD DISASTER PROTECTION.
The Agency agrees to comply with section 202(a) of the Flood Disaster Protection Act of
1973 (42 U.S.C. 4106) and the regulations in 44 CFR Parts 59 through 79.
SECTION 13. REVERSION OF ASSETS.
In accordance with 24 CFR § 570.503(b)(7), upon the expiration of this Agreement,
Agency agrees to transfer to the County any CDBG funds on hand at the time of expiration and
any accounts receivable attributable to CDBG funds. Agency shall also ensure that any real
property under Agency’s control that was acquired or improved with CDBG funds, including
loaned funds, in excess of $25,000 is either
(a) used to meet one of the national objectives set forth in 24 CFR § 570.208 until five (5)
years after the expiration of this Agreement, or such longer time as determined by the
County; or
(b) if not used in accordance with subsection (a) above, Agency agrees to pay the County
an amount equal to the current market value of the property less any portion of the
value attributable to expenditures of non-CDBG funds for the acquisition of, or
improvement to, the property. Such payment shall be treated as program income by
the County. However, no such payment is due after the period of time specified in
subsection (a) above.
SECTION 14. DEBARMENT AND SUSPENSION.
The Agency agrees to certify that it is not presently debarred, suspended, proposed for
debarment, declared ineligible, or voluntarily excluded by any Federal department or agency in
accordance with Executive Orders 12549 and 12689, 2 CFR Part 2424.
SECTION 15. OTHER PROGRAM REQUIREMENTS
(A) The Agency shall carry out each activity in compliance with all Federal laws and
regulations described in Subpart K of 24 CFR Part 570, regardless of whether the law is
specifically stated in this Agreement, except that:
(1) The Agency does not assume the County’s environmental responsibilities
described in 24 CFR § 570.604; and
(2) The Agency does not assume the County’s responsibility for initiating the review
process under Executive Order 12372.
(B) For Agreements in excess of $150,000, the Agency agrees to comply with the Clean Air
Act, 42 U.S.C.7401-7671q, and the Federal Water Pollution Control Act, 22 U.S.C. 1251-1387.
(C) The Agency agrees to comply with the Byrd Anti-Lobbying Amendment, 31 U.S.C. 1352,
where applicable.
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(D) If this Agreement involves the acquisition or improvement of real property or equipment,
the Agency agrees to comply with the provisions of 2 CFR § 200.310 – 200.316.
ARTICLE IV: GENERAL CONDITIONS
SECTION 1. COMPLIANCE WITH LAWS
The Agency, in performance of this Agreement, agrees to comply with all applicable
Federal, State and Local Laws and ordinances, and the rules and regulations promulgated by
the U.S. Department of Housing and Urban Development, including, but not limited to, Federal
Community Development Block Grant Regulations and other policies and guidelines established
for the Kitsap County CDBG Program by the Kitsap County Board of Commissioners. The
Agency agrees to comply with all provisions of the Americans with Disabilities Act and all
regulations interpreting or enforcing such act.
In addition, where applicable the following requirements must be met: (1) Compliance
with the Copeland “Anti-Kickback” Act for any contract or subcontract in excess of $2000 for
construction or repair (18 U.S.C. 874 and 40 U.S.C. 276c as supplemented by 29 CFR Part 3);
(2) Contract Work Hours and Safety Standards Act for any contracts in excess of $2000 for
construction or contracts in excess of $2500 that involve the employment of mechanics or
laborers (40 U.S.C. 327 – 333, as supplemented by 29 CFR Part 5); (3) contracts or
agreements for the performance of experimental, developmental, or research work include the
rights of the Federal Government and recipient in any resulting invention in accordance with 37
CFR Part 401; (4) for contracts in excess of $100,000, the Agency must comply with all
applicable standards, orders or regulations issued pursuant to the Clean Air Act (42 U.S.C. 7401
et seq.) and the Federal Water Pollution Control Act as amended (33 U.S.C. 1251 et seq.); (5)
all agencies must comply with the Drug-Free Workplace Act of 1988 (42 U.S.C. 701); and (6) for
construction projects, all agencies must comply with, including subcontractors, the Federal
Labor Standards Provisions, as issued by the U.S. Department of Housing and Urban
Development.
SECTION 2. LICENSING AND PROGRAM STANDARDS
The Agency agrees to comply with and to obtain at its own expense, if necessary, all
applicable Federal, State, County or Municipal standards for licensing, certification and
operation of facilities and programs, and accreditation and licensing, certification and operation
of facilities and programs, and accreditation and licensing of individuals, and any other
standards or criteria as described in this Agreement to ensure quality of services.
SECTION 3. INSURANCE
Prior to commencing work, Agency shall procure and maintain at Agency’s own cost and
expense for the duration of this Agreement the following insurance placed with insurers with a
minimum Best’s rating of A-, VI against claims for injuries to persons or damages to property
which may arise from or in connection with the performance of the work or services hereunder
by the Agency, its agents, representatives, employees or subcontractors.
Minimum Limits of Insurance. Agency shall maintain limits no less than:
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• Commercial General Liability: One million dollars ($1,000,000) combined single limit per
occurrence for bodily injury, personal injury and property damage, and two million dollars
($2,000,000) aggregate. Coverage shall be on an “occurrence” basis.
• Comprehensive Automobile Liability Insurance: One million dollars ($1,000,000)
combined single limit per accident for bodily injury/property damage. Coverage will
include owned, hired, and non-owned vehicles.
• Workers’ Compensation and Employer’s Liability: Workers’ Compensation coverage as
required by Title 51, Revised Code of Washington.
• Professional Liability Errors and Omissions: In the event that services delivered pursuant
to this contract either directly or indirectly involve or require professional services the
Agency will provide professional liability errors and omissions coverage with a minimum
limit of $1,000,000 per claim and in the aggregate.
Miscellaneous Insurance Provisions
• Agency’s Insurance is Primary: The Agency’s liability insurance provisions will be
primary with respect to any insurance or self-insurance programs covering the County, its
elected and appointed officers, officials, employees and agents.
• Additional Insured: The Agency’s commercial general liability and automobile liability
insurance (if applicable) will include the County, its officers, officials, employees, and
agents as additional insured, without limitation, with respect to performance under the
contract.
• Evidence of Agency’s Insurance shall be presented to Kitsap County Department of
Human Services prior to the execution of this Agreement. In the event of non-renewal,
cancellation, or material change in coverage, thirty (30) days written notice will be
furnished to the County prior to the date of cancellation, non-renewal or change. Written
notice of cancellation or change will be mailed to the County at the following address:
Kitsap County Department of Human Services
Block Grant Program
345 6th Street, Suite 400
Bremerton, WA 98337
Upon receipt, the Human Services Department will ensure submission of all insurance
documentation to the Risk Management Division, Kitsap County Department of
Administrative Services.
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SECTION 4. INDEMNITY
The Agency agrees to defend, indemnify and save harmless the County, its appointed
and elected officers and employees from and against any and all liability, loss, costs, damage
and expense, including costs and attorney fees in defense thereof because of actions, claims or
lawsuits for damages resulting from personal or bodily injury, including death at any time
resulting therefrom, sustained or alleged to have been sustained by any person or persons and
on account of damage to property, arising or alleged to have arisen directly or indirectly out of or
in consequence of the performance of this Agreement, whether such injuries to persons or
damage to property is due to the negligence of the Agency, its officers, employees, volunteers,
subcontractors, agents, successor, or assigns. This indemnification will also apply to any claims
arising out of the Agency’s non-compliance with federal regulations, as required under this
Agreement. This provision shall be inapplicable to the extent the County is judicially found solely
negligent for such damage or injury.
Solely for the purposes of this provision, Agency waives its immunity under Title 51
(Industrial Insurance) of the Revised Code of Washington and acknowledges that this waiver
was mutually negotiated by the parties.
SECTION 5. NOTICES
Any notices required or permitted to be given shall be in writing and delivered to the
following parties at the following addresses:
County: Agency:
Kitsap County Dept. of Human Services City of Port Orchard
Block Grant Program Dept. of Public Works
345 6th Street, Suite 400 216 Prospect St.
Bremerton, WA 98337-1869 Port Orchard, WA 98366
SECTION 6. ASSIGNMENT AND SUBCONTRACTING
The Agency shall not assign or subcontract any portion of the services provided within
the terms of this Agreement without obtaining prior written approval from the County. All terms
and conditions of this Agreement shall apply to any approved subcontract or assignment related
to this Agreement.
SECTION 7. RESERVATION OF RIGHTS
Failure to insist upon strict compliance with any terms, covenants or conditions of this
Agreement shall not be deemed a waiver of such, nor shall any waiver or relinquishment of such
right or power at any time be taken to be a waiver of any other breach.
SECTION 8. AMENDMENTS TO AGREEMENT
The parties hereby further agree that this Agreement cannot be amended or modified
without the written concurrence of both parties.
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SECTION 9. DISPUTE RESOLUTION
The parties will attempt in good faith to resolve any dispute or claim arising out of or in
relation to this Agreement through negotiations between representatives with authority to settle
the relevant dispute. If the dispute cannot be settled amicably within fourteen days from the
date on which either party has served written notice on the other of the dispute, then the
remaining provisions of this Agreement, including remedies for non-compliance and termination
shall apply.
SECTION 10. FAILURE TO PERFORM
In the event of a failure by the Agency to comply with any terms or conditions of this
Agreement or to provide in any manner the activities or other performance as agreed to herein,
the County reserves the right to temporarily withhold all or any part of payment pending
correction of the deficiency, suspend all or part of this Agreement, or prohibit the Agency from
incurring additional obligations of funds until the County is satisfied that corrective action has
been taken or completed. The option to withhold funds is in addition to, and not in lieu of, the
County’s right to terminate, as provided in Article IV Section 11 of this Agreement. The County
may consider performance under this Agreement when considering future awards.
SECTION 11. SUSPENSION AND TERMINATION
If the Agency fails to comply with the terms and conditions of this Agreement, the County
may pursue such remedies as are available in accordance with Article IV Section 10, and/or
terminate this Agreement under the following terms:
(A) Termination for Cause – If the Agency fails to comply with the terms and conditions of
this Agreement, and any of the following conditions exist:
(1) The lack of compliance with the provisions of this Agreement are of such scope
and nature that the County deems continuation of this Agreement to be
substantially non-beneficial to the public interest;
(2) The Agency has failed to take satisfactory corrective action as directed by the
County or its authorized representative within the time specified by same; or
(3) The Agency has failed within the time specified by the County or its authorized
representative to satisfactorily substantiate its compliance with the terms and
conditions of this Agreement;
then the County may terminate this Agreement in whole or in part, and thereupon shall
notify in writing the Agency of the termination, the reasons therefor, and the effective date. The
effective date shall not be prior to notification of the termination by the County to the Agency.
Costs resulting from obligations incurred by the Agency after termination of this Agreement are
not allowable unless specifically authorized in writing by the County.
(B) Termination for Convenience
This Agreement may be terminated for convenience, in whole or in part, as follows:
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(1) By the County with the consent of the Agency. The two parties shall agree upon
the termination conditions, including the effective date and in the case of partial
termination, the portion to be terminated, or
(2) By the Agency upon submitting written notification to the County. The written
notification must set forth the reasons for the termination, the effective date, and in
the case of partial termination, the portion to be terminated. However, in the case
of a proposed partial termination, the County may terminate the award in its
entirety if the County determines that the remaining portion will not accomplish the
purpose for which the award was made.
(C) Termination for Withdrawal, Reduction or Limitation of Funding
In the event that funding from the Federal government is withdrawn, reduced, or limited in
any way after the effective date of this Agreement and prior to its normal completion, the
County may summarily terminate this Agreement as to the funds reduced or limited,
notwithstanding any other termination provision of this Agreement. If the level of funding
so reduced or limited is so great that Kitsap County deems that the continuation of the
program covered by this Agreement is no longer in the best interest of the public, the
County may summarily terminate this Agreement in whole notwithstanding any other
termination provisions of this Agreement. Termination under this Section shall be
effective upon receipt of written notice by the Agency or its representative.
SECTION 12. CLOSE-OUT
Upon termination of this Agreement, in whole or in part for any reason including
completion of the project, the following provisions shall apply:
(A) Upon written request by the Agency, the County shall make or arrange for payment to the
Agency of allowable reimbursable costs not covered by previous payments;
(B) The Agency shall submit within thirty (30) days after the date of expiration of this
Agreement, all financial, performance and other reports required by this Agreement, and
in addition, will cooperate in a program audit by the County or its designee; and
(C) Closeout of funds will not occur unless all requirements of 2 CFR Part 200 Subpart D and
all outstanding issues with the general contractor and or subcontractor have been
resolved to the satisfaction of the County.
SECTION 13. VENUE AND CHOICE OF LAW
Any action at law, suit in equity, or other judicial proceeding for the enforcement of this
Agreement or any provisions thereof shall be instituted only in the Superior Court of the State of
Washington, County of Kitsap. It is mutually understood and agreed that this Agreement shall
be governed by the laws of the State of Washington, both as to interpretation and performance.
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SECTION 14. SEVERABILITY CLAUSE
It is understood and agreed by the parties that if any part, term, or provision of this
Agreement is held by the courts to be illegal or in conflict with any law of the state where made,
the validity of the remaining portions or provisions shall not be affected, and the rights and
obligations of the parties shall be construed and enforced as if this Agreement did not contain
the particular part, term, or provision held to be invalid.
SECTION 15. INTEGRATED DOCUMENT
This Agreement with any attachments constitutes the entire agreement between the
parties and both parties acknowledge that there are no other agreements, written or oral, that
have not been fully set forth in the text of this Agreement.
Dated this _____day of ________, 2022.
AGENCY:
City of Port Orchard
Mayor, Robert Putaansuu
Dated this _____day of ________, 2022.
KITSAP COUNTY
KAREN GOON, County Administrator
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INDEX TO CDBG AGREEMENT
Article I. Project
1. Scope of Services
2. Project Description
3. Schedule of Completion
4. Conditional Commitment
5. Term of Agreement
6. Program Reporting
Article II. Financial Conditions
1. Budget and Compensation
2. Documentation of Costs and Other Financial Reporting
3. Reimbursement
4. Program Income
Article III. Federal Conditions
1. Benefit to Low Income People
2. Uniform Administrative Requirements
3. Separation of Church and State
4. Non-Discrimination in Employment and Purchasing
5. Local Employment and Purchasing
6. Conflict of Interest
7. Displacement, Relocation, Acquisition and Replacement of Housing
8. Davis Bacon and Related Act
9. Lead Based Paint
10. Discrimination Prohibited
11. Architectural Barriers Act/Americans with Disabilities Act
12. Flood Disaster Protection
13. Reversion of Assets
14. Debarment and Suspension
15. Other Program Requirements
Article IV. General Conditions
1. Compliance with Laws
2. Licensing and Program Standards
3. Insurance
4. Indemnity
5. Notices
6. Assignment and Subcontracting
7. Reservation of Rights
8. Amendments to Agreement
9. Dispute Resolution
10. Failure to Perform
11. Suspension and Termination
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12. Close-Out
13. Venue and Choice of Law
14. Severability Clause
15. Integrated Document
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Attachment A – Budget Summary – City of Port Orchard, Lippert Sidewalk Retrofit
PERSONNEL, including
managers, staff, salaries,
benefits and taxes.
AMOUNT
including office supplies, office
equipment if approved.
AMOUNT
occupancy (building & grounds),
advertising, audit,
insurance/bonds, postage,
rent/utilities, communication,
training, travel, transportation
AMOUNT
AMOUNT
including appraisal, design and
A&E, processing/settlement and
financing, marketing, operating
reserve, professional fees and
contract services
AMOUNT
COSTS, including
clearance/demolition,
construction, rehabilitation and
improvements.
AMOUNT
including:
AMOUNT
TOTAL PROJECT COSTS
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ATTACHMENT B
CERTIFICATION REGARDING DEBARMENT,
SUSPENSION, AND OTHER RESPONSIBILITY MATTERS
Primary Covered Transactions 24 CFR PART 24
1. The Agency certifies to the best of its knowledge and belief, that it and its
principles:
a. Are not presently debarred, suspended, proposed for debarment,
declared ineligible, or voluntarily excluded by any Federal
department or agency;
b. Have not within a three-year period preceding this proposal been
convicted of or had a civil judgment rendered against them for
commission of fraud or a criminal offense in connections with
obtaining, attempting to obtain, or performing a public (Federal,
State or local) transaction or contract under a public transaction;
violation of Federal or State antitrust statutes or commission of
embezzlement, theft, forgery, bribery, falsification or destruction of
records, making false statement, or receiving stolen property;
c. Are not presently indicted for or otherwise criminally or civilly
charges by a governmental entity (Federal, State or local) with
commission of any of the offenses enumerated in paragraph 1.b. of
this certification; and
d. Have not within a three-year period preceding this
application/proposal had one or more public transactions (Federal,
State or local) terminated for cause or default.
2. Where the Agency is unable to certify to any of the statements in this
certification, such prospective participant shall attach an explanation to
this proposal.
This Certification is executed by the person(s) signing below who warrant they
have authority to execute this Certification.
AGENCY: City of Port Orchard
___
Mayor, Robert Putaansuu Date
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ATTACHMENT C
CERTIFICATION REGARDING LOBBYING
The undersigned certifies, to the best of his or her knowledge and beliefs, that:
(1) No Federal appropriated funds have been paid or will be paid, by or on behalf
of the undersigned, to any person for influencing or attempting to influence an
officer or employee of an agency, a Member of Congress, an officer or
employee of Congress or an employee of a Member of Congress in
connection with the awarding of any Federal contract, the making of any
Federal grant, the making of any Federal loan, the entering into of any
cooperative agreement, and the extension, continuation, renewal,
amendment, or modification of any Federal contract, grant, loan, or
cooperative agreement.
(2) If any funds other than Federal appropriated funds have been paid or will be
paid to any person for influencing or attempting to influence an officer or
employee of any agency, a Member of Congress, an officer or employee of
Congress, or an employee of a Member of Congress in connection with this
Federal contract, grant, loan, or cooperative agreement, the undersigned
shall complete and submit Standard Form-LLL, "Disclosure Form to Report
Lobbying," in accordance with its instructions.
(3) The undersigned shall require that the language of this certification be
included in the award documents for all subawards at all tiers (including
subcontracts, subgrants and contracts under grants, loans, and cooperative
agreements) and that all subrecipients shall certify and disclose accordingly.
This certification is a material representation of fact upon which reliance was placed
when this transaction was made or entered into. Submission of this certification is a
prerequisite for making or entering into this transaction imposed by section 1352, title
31, U.S. Code. Any person who fails to file the required certification shall be subject to
a civil penalty of not less than $10,000 and not more than $100,000 for each such
failure.
AGENCY: City of Port Orchard
___________
Mayor, Robert Putaansuu Date
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City of Port Orchard
216 Prospect Street, Port Orchard, WA 98366
(360) 876-4407 • FAX (360) 895-9029
Agenda Staff Report
Agenda Item No.: Business Item 7D Meeting Date:
February 22, 2022
Subject: Adoption of a Resolution Granting an Prepared by: Mark Dorsey, P.E.
Easement to the City of Bremerton for Public Works Director
the McCormick Village Park Water Atty Routing No.: 366922.0009 – PW
Facilities Atty Review Date: February 13, 2022
Summary: On February 20, 2014, South Kitsap Fire and Rescue granted a Permanent Access and Utility
Easement to the City of Port Orchard for the purpose of constructing, operating and maintaining a
shared permanent entry road and underground utility services as needed and in association with the
pending McCormick Park Development Project. As part of the 2014 McCormick Village Park Development
Project, an 8-inch water distribution main and fire hydrant serving the Project was constructed within
the Permanent Access and Utility Easement mention above and on City owned property. On November
21, 2019, the City of Port Orchard and the City of Bremerton entered into an Interlocal Agreement
(C077-19) for the Purchase and Sale of Assets within the 580 Zone, whereby one of the Conditions of the
Agreement required the existing 8-inch water distribution main and fire hydrant serving McCormick
Village Park Development Project within the City of Bremerton’s Water Retail Service Area to be
conveyed to the City of Bremerton in accordance with the Kitsap County Coordinated Water System
Plan. By this Resolution, the City Council would authorize the Mayor to execute a 15-ft wide perpetual
easement for water utilities to effectuate the terms of the City’s ILA with the City of Bremerton.
Relationship to Comprehensive Plan: Chapter 7 – Utilities
Recommendation: Staff recommends adoption of Resolution No. 019-22, thereby authorizing the Mayor
to grant a 15-ft wide perpetual easement for Water Utilities to the City of Bremerton for the McCormick
Village Park water facilities located on City owned property.
Motion for Consideration: I move to adopt Resolution No. 019-22, authorizing the Mayor to grant a 15-
ft wide perpetual easement for Water Utilities to the City of Bremerton for the McCormick Village Park
water facilities located on City owned property.
Alternatives: None
Fiscal Impact: None
Attachments: Resolution 019-22 and Easement for Water Utilities.
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RESOLUTION NO. 019-22
A RESOLUTION OF THE CITY OF PORT ORCHARD, WASHINGTON, AUTHORIZING
THE MAYOR TO GRANT A 15-FT WIDE PERPETUAL EASEMENT FOR WATER
UTILITIES TO THE CITY OF BREMERTON FOR THE MCCORMICK VILLAGE PARK
WATER FACILITIES LOCATED ON CITY PROPERTY, BUT LOCATED WITHIN THE
CITY OF BREMERTON WATER RETAIL SERVICE AREA.
WHEREAS, on February 20, 2014, South Kitsap Fire and Rescue granted a Permanent
Access and Utility Easement to the City of Port Orchard (AFN No. 201402200181) for the
purpose of constructing, operating and maintaining a shared permanent entry road and
underground utility services (water, sanitary sewer, storm drainage, power, phone & cable) as
needed and in association with the pending McCormick Park Development Project; and
WHEREAS, as part of the 2014 McCormick Village Park Development Project – Phase I
Grading and Utility Improvements, an 8-inch water distribution main and fire hydrant serving
the Project was constructed 1) within the Permanent Access and Utility Easement mention
above and 2) on City-Owned property; and
WHEREAS, on November 21, 2019, the City of Port Orchard and the City of Bremerton
entered into an Interlocal Agreement for the Purchase and Sale of Assets within the 580 Zone,
whereby one of the Conditions of the Agreement required the existing 8-inch water distribution
main and fire hydrant serving McCormick Village Park Development Project within the City of
Bremerton’s Water Retail Service Area to be conveyed to the City of Bremerton in accordance
with the Kitsap County Coordinated Water System Plan; and
WHEREAS, the grant of easements over and across City-owned property requires
authorization by the City Council; and
WHEREAS, the City Council desires to grant an easement to the City of Bremerton to
effectuate the terms of the aforementioned Agreement; and
WHEREAS, the City Council finds that the grant of the requested easement is in the best
interests of the residents of Port Orchard; now, therefore,
THE CITY COUNCIL OF THE CITY OF PORT ORCHARD, WASHINGTON, HEREBY RESOLVES
AS FOLLOWS:
THAT: It is the intent of the Port Orchard City Council that the recitals set forth above
are hereby adopted and incorporated as findings in support of the Resolution.
THAT: The Port Orchard City Council approves of and authorizes the Mayor to execute a
15-ft wide perpetual Easement for Water Utilities with the City of Bremerton for the
McCormick Village Park Water Facilities, in a form acceptable to the City Attorney.
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Resolution No. 019-22
Page 2 of 2
THAT: This Resolution shall take full force and effect upon passage and signatures
hereon.
PASSED by the City Council of the City of Port Orchard, SIGNED by the Mayor and attested
by the Clerk in authentication of such passage this 22nd day of February 2022.
Robert Putaansuu, Mayor
ATTEST:
Brandy Wallace, MMC, City Clerk
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City of Port Orchard
216 Prospect Street, Port Orchard, WA 98366
(360) 876-4407 • FAX (360) 895-9029
Agenda Staff Report
Summary: On January 13, 2022, the City’s Public Works Department selected three (3) qualified firms
from the current MRSC Professional Services Roster for the Main Category; Engineering Services and
Sub-Category; Sewer System Planning and Design for the 2023 General Sewer Plan (GSP) Update. By
January 18, 2022, Public Works Staff reviewed and scored the Statements of Qualification (SOQ) and
notified Murraysmith, Inc. that they were selected as the most qualified for the GSP Update. On January
20, 2022, Public Works Staff met with Murraysmith, Inc. to clarify the project scope and on February 7,
2022, the City received a viable Scope of Work and Budget in an amount not to exceed $117,272 for the
2023 General Sewer Plan Update for the City’s Sanitary Sewer System.
Relationship to Comprehensive Plan: Chapter 7 – Utilities (Sanitary Sewer)
Recommendation: Staff recommends adoption of Resolution No. 011-22, thereby authorizing the Mayor
to execute Contract No. C029-22 with Murraysmith, Inc. in the amount of $117,272 for the 2023 General
Sewer Plan Update for the City’s Sanitary Sewer System and documenting procurement procedures.
Motion for Consideration: I move to adopt Resolution No. 011-22, authorizing the Mayor to execute
Contract No. C029-22 with Murraysmith, Inc. in the amount of $117,272 for the 2023 General Sewer
Plan Update for the City’s Sanitary Sewer System and documenting procurement procedures.
Fiscal Impact: Funding of $100K allocated for this task with the approved 2021-2022 Biennial Budget. A
Budget Amendment may be required.
Alternatives: None
Attachments: Resolution No. 011-22 and Contract No. C029-22 (dated 2/7/2022).
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RESOLUTION NO. 011-22
A RESOLUTION OF THE CITY OF PORT ORCHARD, WASHINGTON, AUTHORIZING
THE MAYOR TO EXECUTE CONTRACT NO. C029-22 WITH MURRAYSMITH, INC.
FOR 2023 GENERAL SEWER PLAN UPDATE FOR THE CITY’S SANITARY SEWER
SYSTEM AND DOCUMENTING ARCHITECTURAL & ENGINEERING SERVICES
PROCUREMENT PROCEDURES.
WHEREAS, pursuant to RCW 39.80, the City of Port Orchard’s Public Works Department
annually publishes a general Request for Qualifications (RFQ) for professional engineering,
surveying, architecture, structural design and related services for a Professional Services Roster;
and
WHEREAS, on June 3, 2013 the City of Port Orchard began utilizing the MRSC Consultant
Roster database, whereby MRSC publishes annually on the City’s behalf, the general Request
for Qualifications (RFQ) for professional engineering, surveying, architecture, structural design
and related services for the Professional Services Roster; and
WHEREAS, the City utilizes a professional engineering firm to provide Comprehensive
Plan Updates for the City’s Sanitary Sewer System; and
WHEREAS, on January 13, 2022, the City of Port Orchard Public Works Department
selected three (3) qualified firms from the MRSC’s current Professional Services Roster for the
Main Category; Engineering Services and Sub-Category; Sewer System Planning and Design; and
WHEREAS, by January 18, 2022, Public Works Staff reviewed and scored the three (3)
Statement of Qualifications and on that same date, Staff notified Murraysmith, Inc. that they
had been selected for the 2022 General Sewer Plan Update, being determined as the most
qualified professional services engineering firm, subject to Council approval; and
WHEREAS, on January 20, 2022, a meeting with Murraysmith, Inc. was held to clarify
Project Scope; and
WHEREAS, on February 7, 2022, the City’s Public Works Department received a viable
Project Understanding (Scope and Budget) from Murraysmith, Inc.; and
WHEREAS, the Port Orchard City Council, at the 2015 recommendation of the State
Auditor’s Office, wishes to document their consultant selection process as described above for
this particular contract by Resolution; now, therefore,
THE CITY COUNCIL OF THE CITY OF PORT ORCHARD, WASHINGTON, HEREBY RESOLVES
AS FOLLOWS:
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Resolution No. 011-22
Page 2 of 2
THAT: It is the intent of the Port Orchard City Council that the recitals set forth above
are hereby adopted and incorporated as findings in support of this Resolution.
THAT: The City Council authorizes the Mayor to execute Contract No. C029-22 with
Murraysmith, Inc. for the 2023 General Sewer Plan Update for the City’s Sanitary Sewer
System.
PASSED by the City Council of the City of Port Orchard, SIGNED by the Mayor and
attested by the City Clerk in authentication of such passage on this 22nd day of February 2022.
____________________________________
Robert Putaansuu, Mayor
ATTEST:
____________________________
Brandy Wallace, MMC, City Clerk
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City of Port Orchard
216 Prospect Street, Port Orchard, WA 98366
(360) 876-4407 • FAX (360) 895-9029
Agenda Staff Report
Summary: Current City 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 position. One-half payable at the
time of the applicant’s hire, the remaining half payable upon that applicant’s completion of their
probationary period.
The program would be available on a per recruitment basis only when designated as eligible by the
Mayor. Factor to determine eligibility would include:
• 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.
Recommendation: Staff recommends the Council adopt the attached resolution approving a recruiting
incentive program for City staff.
Relationship to Comprehensive Plan: N/A
Motion for consideration: I move to adopt a Resolution establishing a referral incentive program for City
staff.
Fiscal Impact: It is anticipated that current budget authorization will cover the expenses involved to
implement this program.
Alternatives: Not authorize the Resolution and provide further guidance.
Attachments: Resolution
Agenda Item No.: Business Item 7F Meeting Date: February 22, 2022
Subject: Adoption of a Resolution Establishing a Prepared by: Debbie Lund
Referral Incentive Program for Current HR Manager
Staff Members Atty Routing No.: 366922-0008 – HR
Atty Review Date: February 18, 2022
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RESOLUTION NO. ______
A RESOLUTION OF THE CITY OF PORT ORCHARD, WASHINGTON, AUTHORIZING
AN EMPLOYEE REFERRAL INCENTIVE PROGRAM.
WHEREAS, a combination of factors has resulted in extremely low unemployment and a
difficult recruitment environment ; and
WHEREAS, the City of Port Orchard’s ability to provide essential services is dependent
upon employees to perform those services; and
WHEREAS, current City employees are often the first point of contact for potential
employees; and
WHEREAS, the City desires to encourage current employees to talk to qualified potential
applicants about the working environment and benefits provided to City employees; and
WHEREAS, in recognition of these considerations, the City Council desires to reward
employees for finding qualified applicants for City employment; now, therefore;
THE CITY COUNCIL OF THE CITY OF PORT ORCHARD, WASHINGTON, HEREBY RESOLVES AS
FOLLOWS:
THAT: It is the intent of the Port Orchard City Council that the recitals set forth above are
hereby adopted and incorporated as findings in support of this Resolution.
THAT: The Mayor is authorized to implement personnel policy 3.10 substantially in the
form attached hereto as Exhibit 1.
THAT: The Mayor is authorized to modify or create any applicable City policies and
procedures to implement this program.
THAT: The Mayor is authorized to sign any agreement as an addendum to a collective
bargaining agreement to implement this employee referral program for employees who
are represented by a union.
PASSED by the City Council of the City of Port Orchard, SIGNED by the Mayor and attested
by the City Clerk in authentication of such passage this 22nd day of February 2022.
Robert Putaansuu, Mayor
ATTEST:
Brandy Wallace, MMC, City Clerk
Page 99 of 221
Exhibit 1
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 former employees or 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:
• Any elected official,
• 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
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decision. The Mayor has the discretion to end this program at any time.
2. If the Referral Incentive Program is ended by the Mayor, any Eligible Referring
Employee who is due the second payment for a referral will be eligible for the
Incentive Payment provided that all other components of this policy are met.
3. 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
regarding specific employment opportunities.
4. 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.
5. The Eligible Referring Employee must be a City employee at the time any Referral
Incentive payment is paid.
6. The hiring process will be fair and consistent with City policies, with no bias for or
against candidates whose selection might make another employee eligible for a
Referral Incentive. All information regarding the hiring decision will remain
confidential.
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City of Port Orchard
216 Prospect Street, Port Orchard, WA 98366
(360) 876-4407 • FAX (360) 895-9029
Agenda Staff Report
Summary: On October17, 2021, Bob Showers and Nathan Martin, on behalf of the South Kitsap Western
Little League, approached the City asking the City Council to name the little league t-ball field behind the
Active Club, adjacent to the Art Mikelsen Memorial Field, as the “Dick Taute Memorial Field”.
Richard “Dick” Lyle Taute, Sr. devoted his life to ensuring boys and girls had a wholesome program of
service to youth. He was also instrumental in helping, thru the Lions Club, purchasing bleachers for the t-
ball field.
This request was brought before the Land Use Committee on February 16, 2022, and they were
supportive of the name change of the field. If approved by the City Council, signs will be placed
designating the name of the field and it will be at the expense of the South Kitsap Western Little League.
Recommendation: Staff recommends approving the resolution as presented.
Motion for consideration: I move to adopt a resolution, naming and designating the Little League T-ball
field behind the Active Club to adjacent to the Art Mikelsen Memorial Field, as the “Dick Taute Memorial
Field”.
Fiscal Impact: None.
Alternatives: N/A
Attachments: Resolution and Aerial Map
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RESOLUTION NO. ___________________
A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF PORT ORCHARD,
WASHINGTON NAMING AND DESIGNATING THE LITTLE LEAGUE T-
BALL FIELD AS THE “DICK TAUTE MEMORIAL FIELD”
WHEREAS, Richard “Dick” Lyle Taute, Sr. devoted his life to ensuring boys and girls
had a wholesome program of service to youth; and
WHEREAS, he had been instrumental in helping, thru the Lions Club, purchasing
bleachers for the t-ball field; and
WHEREAS, he passed away on September 10, 2021, and to honor his memory, the
City council will name the little league t-ball field as the “Dick Taute Memorial Field”; and
THE CITY COUNCIL OF THE CITY OF PORT ORCHARD, WASHINGTON, HEREBY
RESOLVES AS FOLLOWS:
THAT: The name of the little league t-ball field behind the Active Club, adjacent to
the Art Mikelsen Memorial Field, as the “Dick Taute Memorial Field”.
PASSED by the City Council of the City of Port Orchard, SIGNED by the Mayor and attested
by the City Clerk in authentication of such passage this 22nd day of February 2022.
_____________________________________
Robert Putaansuu, Mayor
ATTESTED:
_____________________________________
Brandy Wallace, MMC, City Clerk
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City of Port Orchard
216 Prospect Street, Port Orchard, WA 98366
(360) 876-4407 • FAX (360) 895-9029
Agenda Staff Report
Summary: In 2017 the City Council adopted, by reference, the General Records Retention Schedule and
Records Retention Manual approved by the Office of the Secretary of State Washington State Local Records
Committee. The manual identifies record types, but does not provide policy as to how local governments
choose to manage the records to be in compliance.
Staff has developed operating policies and procedures to ensure city records are managed in an accordance
with the manual and Advice sheets produced by the Washington State Archives. This policy covers:
• the process for disposing or archiving paper and electronic records;
• the process for destruction of non-archival paper records after imaging, known as “Scanning and
Tossing”; and
• the process for documenting the destruction or archival transfer of records.
Recommendation: Staff recommends adoption of the resolution, adopting the operating policies and
procedures as presented.
Relationship to Comprehensive Plan: None.
Motion for consideration: I move to adopt a resolution adopting operating policies and procedures for
managing City records, as presented.
Fiscal Impact: None.
Alternatives: Not adopt the resolution and provide guidance to City staff regarding revisions to the
document presented.
Attachments: Resolution
Operating Policies and Procedures
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RESOLUTION NO. _______
A RESOLUTION OF THE CITY OF PORT ORCHARD, WASHINGTON, ADOPTING
OPERATING POLICIES AND PROCEDURES FOR MANAGING CITY RECORDS
WHEREAS, Chapter 40.14 RCW, Preservation and Destruction of Public Records state
that all records shall be and remain the property of State of Washington and sets criteria as to
the retention and destruction of public records; and
WHEREAS, the City of Port Orchard ("the City") is a local agency as defined in the statute
and must therefore comply with its provisions; and
WHEREAS, the Policies and Procedures for managing city records were developed by
using the Office of the Secretary of State, Washington State Archives Advise sheets; and
WHEREAS, the City must follow, and it is the City Council’s desire to adopt policies and
procedures to be consistent with State law; NOW, THEREFORE,
THE CITY COUNCIL OF THE CITY OF PORT ORCHARD, WASHINGTON, HEREBY RESOLVES
AS FOLLOWS:
THAT: The “Policies and Procedures for Records Management,” attached hereto as
Exhibit A are hereby adopted.
PASSED by the City Council of the City of Port Orchard, SIGNED by the Mayor and attested
by the City Clerk in authentication of such passage this 22nd day of February 2022.
Robert Putaansuu, Mayor
ATTEST:
Brandy Wallace, MMC, City Clerk
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Page OP101-1
Operating Policy and Procedure 101
Records Management
1.0 Purpose
The purpose of this policy is to provide direction and guidance to City of Port Orchard
employees and elected officials in the management of records created or received relating
to the conduct of city business. In addition, this policy and procedures are to ensure the city
manages these records in compliance with Washington State retention rules and laws.
Organizing and managing records will save space, provide efficient access, maintain
confidentiality where needed, and reduce legal exposure in “discovery” proceedings.
2.0 Policy
2.1 What is a public record?
A. Chapter 40.14 of the Revised Code of Washington (RCW) contains regulations
for the retention, preservation and lawful destruction of public records, and
grants authority to Washington State Archives to preserve and protect public
records. (Chapter 42.56 RCW defines public records for the purposes of public
records requests.) Per RCW 40.14.010, “public records” are defined by three
key criteria:
1. "Made or received by any agency in the State of Washington" Public
Records include both records that an agency creates and those that it
receives or collects. For example, when an agency solicits public comment
on an issue, both the request for comment and any comments received in
response are public records.
2. "In connection with the transaction of public business" A record
provides proof or evidence of agency business. Agency business includes
not only the core functions of an agency, but also support functions, such as
finance, human resources, and facility and asset management.
If a record meets the two criteria listed above, then it is a public record that
needs to be retained and managed.
3. "Regardless of physical form or characteristic" A public record,
regardless of the format in which it is sent or received. Not only paper
records, photographs or microfilm, but records that are created or received
using any kind of digital format or application. This includes emails,
websites, wikis, databases, digital photos, text messages, blogs, tweets, and
any emerging technologies used to conduct agency business. Having a
record in a different format does not change the retention requirements or
disposition that is to be applied.
B. Note: Per RCW 40.14.020, public records are the property of the State of
Washington, and do not belong to the individuals who create or receive them.
These records must be kept, managed and disposed of lawfully, in accordance
with approved records retention schedules. Agencies need to be aware of what
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Page OP101-2
constitutes a public record in order to capture, manage, retain, and dispose of
them appropriately.
3.0 Procedures
3.1 Responsibilities
The City Clerk is designated as the Records Manager for the City. The City Clerk
will ensure the city-wide records management program is followed.
A. Records Manager Responsibility
1. Remain current and knowledgeable on the laws and rules governing records
retention that affects the City.
2. Periodically review the City’s retention process to ensure that policies and
procedures are being followed and are current with State law.
3. Provide periodic training to Liaisons to assist them in managing their areas
of responsibility.
4. Oversee the destruction of records that have reached the end of their
retention period.
5. Oversee the appraisal of records that have reached the retention period and
the transfer of records to the Regional State Archives.
B. Department Responsibility
1. Department supervisors shall appoint a records management liaison for
each department. The Liaison shall be the point of contact between the
department and the City Clerk and will be expected to be the person most
knowledgeable about the City’s records management policy and how it
related to their department.
C. Liaison Responsibility
1. Work with City Clerk and Information Technology staff to establish an
electronic file storage structure that assists in classifying and preserving the
electronic documents encountered in the department area of responsibility
to facilitate the management of documents meeting retention and/or
destruction rules.
2. Complete training as required by State law.
3. Train new staff on record retention process for your department.
D. Information Technology Staff Responsibility
1. Assist the City Clerk and Liaisons in developing, implementing and
maintaining an electronic records storage system that supports this policy.
2. Provide a secure, safe environment for the electronic records of the City.
3. Provide a Disaster Recovery Backup System to be maintained to
exclusively provide disaster recovery from catastrophic data loss. This
system is not and shall not be relied upon or used as a retention or archiving
system.
4. Provide a minimal recovery period for city documents if accidentally or
Page 108 of 221
Page OP101-3
inadvertently deleted.
E. Employees and Elected Officials Responsibility
1. All employees shall follow the rules set forth in this policy in managing
documents, storing and identifying documents in locations and formats and
in compliance with retention requirements.
2. If an employee is unsure whether a record needs to be kept or if it falls into
an exclusion, the employee should consult with the Records Retention
Schedule and the Records Manager.
3.2.1.1 Record retention schedules
Employees shall keep records in accordance with the retention schedule guidelines
as set forth by the State of Washington Secretary of State, Washington State
Archives, found at: https://www.sos.wa.gov/archives/recordsmanagement/select-
type-of-local-government.aspx. Before any record can be destroyed you shall check
with your supervisor or the records manager.
3.3 Paper Records
A. Each department should routinely, no less than annually, dispose of its original
paper records that have met retention by disposing of the records through a
secure shredding company to protect confidentiality or by transferring the
records to the State archives.
B. Records that have a longer retention period can be boxed and transferred to a
central storage location until the retention has been met.
3.4 Electronic Records
A. Per WAC 434-662-040:
Electronic records must be retained in electronic format and remain usable,
searchable, retrievable and authentic for the length of the designated retention
period. This includes text and voice messages related to the conduct of city
business. Printing and retaining a hard copy are not a substitute for eliminating
the electronic version prior to meeting its required retention.
B. Per WAC 434-662-150 E-mail Management:
Emails created and received by any agency of the State of Washington in the
transaction of public business are public records for the purposes of RCW 40.14
and are subject to the laws and regulations governing the retention, disclosure,
destruction and archiving of public records. The e-mails of elected government
officials and public employees that are created in the transaction of public
business are subject to the records retention periods and disposition
promulgated by the State records committees, and any and all said e-mails with
archival value must be retained or transferred to the digital archives.
Page 109 of 221
Page OP101-4
3.5 Destruction of Non-Archival Paper Records After Imaging (“Scanning and
Tossing”)
A. The State Records Committee and the Local Records Committee have approved
destruction authorities for non-archival paper-based source records that have
been converted to a digital format by imaging (scanning) – and verified to be
complete and accurate – in accordance with the State Archives requirements.
The destruction authority for non-archival local government agency source is
provided by DAN GS50-09-14. Archival records must not be destroyed.
B. Departments that wish to implement the “Scanning and Tossing” program must
follow the guidelines as set forth by the State of Washington Secretary of State,
Washington State Archives, found at:
https://www.sos.wa.gov/archives/recordsmanagement/how-to-scan-image-
records-and-go-paperless.aspx
C. All departments that wish to implement the “Scanning and Tossing” program
must have a procedure in place confirming that:
1. The paper record is eligible for the “Scanning and Tossing” program.
2. The paper record is scanned and verified in a systematic and consistent
fashion that ensures a complete and accurate copy of the sourced
record.
3. Where a complete and accurate image cannot be obtained and verified,
or a paper record is not completely legible, the paper record must be
retained for the entire minimum retention period.
4. Proper scanned format and resolution are used. Acceptable file formats
include TIFF, PNG, PDF, PDF/A, JPEG, JPEG 2000 and the
recommended density is 300 DPI. See Chapter 434-663 WAC.
5. Paper records will not be destroyed before images are verified to be
complete and accurate.
6. Electronic Record is managed, stored, and retained until it has met its
retention.
D. The department shall document that the original paper was converted and
destroyed lawfully under the appropriate disposition authority, and that the
images are also destroyed lawfully once the retention requirements have been
met.
3.6 Documenting Records Transmittal to State Archives
Documentation of records transmitted to the State archives is required and shall be
recorded on the standard Archives Records Transmittal & Box Content List. An
Archives Records Transmittal & Box Content List documents transferred records
and is maintained by each department. This form serves as a permanent record and
Page 110 of 221
Page OP101-5
would be utilized in any legal proceeding as evidence of proper transfer. See the
Clerk’s office for the Archives Records Transmittal & Box Content List.
3.7 Documenting Records Disposal
Documentation of records destruction, both paper and scanned images, are required
and shall be recorded on the standard Destruction Log. A Public Records
Destruction Log documents disposed records and is maintained by each
department. This form serves as a permanent record and would be utilized in any
legal proceeding as evidence of proper destruction. See the Clerk’s office for the
standard Destruction Log.
3.8 Exceptions to Retention Schedule
A. Paper and Electronic Records MUST NOT be destroyed, regardless if the
retention schedule permits, when subject to any of the following:
1. Existing public records requests in accordance with RCW 42.56—If there
is a pending request for records, you cannot destroy them even though the
retention period to keep it has passed. Once the records have been provided
to the Public Records Officer pursuant to the request, they may be logged
on the destruction log and destroyed.
2. Ongoing or reasonably anticipated litigation.
3. Legal requirements, federal statutes, grant agreements.
4. Archival transfer requirements found on the State Retention Schedule.
5. When a specific business need is identified and approved by the Department
Director.
6. Documents related to damage claims or litigation must be retained until
determined they can be released for standard retention.
4.0 References
4.1 State of Washington Secretary of State - Washington State Archives Laws
and Rules for Records Management:
A. Revised Code of Washington (RCW)
40.14 Preservation and Destruction of Public Records
40.16 Penal Provisions for the Intentional Destruction of Public Records
40.20 Reproduced Records
42.56 Public Records Act
B. Washington Administrative Code (WAC)
434-600 Promulgation
434-610 Definitions
434-615 Custody of Public Records
434-620 Powers and Duties (State Archivist)
434-624 Powers and Duties (State Records Committee)
434-626 Powers and Duties (State Agency Records Officers)
Page 111 of 221
Page OP101-6
434-635 Local Records Disposition Authority
434-640 Methods of Records Disposal
434-660 Standards for Public Records
434-662 Preservation of Electronic Records
434-663 Imaging Systems (Standards)
434-670 Local Records Grants Programs
434-677 Security Microfilm (Standards)
434-690 Archives (Public Records Access)
4.2 State of Washington Secretary of State - Washington State Archives
A. Basics of Records Management: Benefits of Managing Public Records Basics
of Public Records Management: What is a Public Record?
B. Records Management Advice Issued: March 2018
C. Requirements for the Destruction of Non-Archival Paper Records after Imaging
“Scanning and Tossing”
4.3 State of Washington Secretary of State-Division of Archives and Records
Management
Essential Records Manual (Security Backup, Disaster Preparedness Response,
and Recovery)
Page 112 of 221
City of Port Orchard
216 Prospect Street, Port Orchard, WA 98366
(360) 876-4407 • FAX (360) 895-9029
Agenda Staff Report
Summary: On September 27, 2021, McCormick Development Corporation submitted an application for final
plat approval for the McCormick West Division 11 project. Additional materials were received through February
11, 2022 to provide a complete application for final plat. The Kitsap County Hearing Examiner granted
preliminary plat approval with conditions on May 30, 2008. Pursuant to WAC 197-11-630 and 965, Kitsap County
issued a Notice of Adoption of Existing Environmental Documents for this proposal. The McCormick West
proposal was included with a group of projects known as the McCormick Urban Village under the South Kitsap
Urban Growth Area / ULID #6 Supplemental Environmental Impact Statement (EIS). The ULID #6 DSEIS was
issued October 26, 2001 and the ULID #6 FSEIS was issued January 9, 2002. The applicant for final plat submitted
a request for an administrative minor plat amendment from the City of Port Orchard which was approved on
February 12, 2021.
The final plat for the McCormick West Division 11 subdivision creates 133 single-family residential lots and 18
tracts, consisting of future development tracts, open space and storm drainage tracts, and a shared access and
utility tracts. The applicant has installed or bonded for roadway illumination, roads, sidewalks, landscaping,
water and sewer, and storm drainage improvements, and the City has received acceptable bonds guaranteeing
completion of any improvements not yet completed. Streets within this final plat are for public use and will be
accepted into the City’s road system.
Relationship to Comprehensive Plan: N/A
Recommendation: Adoption of a resolution, granting approval of the final plat of Plat of McCormick West,
Division 11.
Motion for consideration: I move to adopt a resolution, as presented, granting final plat approval for
McCormick West, Division 11.
Fiscal Impact: Income from building permit fees, ongoing maintenance of public infrastructure.
Alternatives: Approval with added conditions.
Attachments: Resolution, Plat map, Department of Community Development Approval Letter, Public Works
Approval Letter, Bill of Sale, Performance Bond for certain civil improvements, and Landscaping Performance
Bond
Page 113 of 221
RESOLUTION NO. _______
A RESOLUTION OF THE CITY OF PORT ORCHARD, WASHINGTON, GRANTING FINAL
PLAT APPROVAL FOR A 133-LOT AND 18-TRACT PLAT KNOWN AS MCCORMICK WEST
DIVISION 11
WHEREAS, property owner Greg Krabbe, on behalf of McCormick Development
Corporation and West X SW Investment Holdings LLC (hereinafter “Applicant”), has submitted an
application for final plat approval of the project known as McCormick West, Division 11 on
undeveloped property located in the City of Port Orchard (hereinafter “the Property”); and
WHEREAS, in 2008, the Applicant received preliminary plat approval from the Kitsap
County Hearing Examiner for a master planned subdivision of 606 acres into as many as 1,545
single-family residential lots known as McCormick West Preliminary Plat (Kitsap County file #05
30003); and
WHEREAS, on September 27, 2021, application was submitted for the final plat of
Division 11 of the McCormick West preliminary plat to include 133 single-family residential lots
and 18 tracts; and
WHEREAS, the Property is subject to a Development Agreement vesting the property to
certain development standards, recorded on December 19, 2011; and
WHEREAS, the Property is subject to a Development Agreement for traffic, recorded on
October 21, 2005 as modified and recorded on February 19, 2021; and
WHEREAS, on February 12, 2021, the City of Port Orchard Development Director
approved a Minor Plat Amendment to the McCormick West preliminary plat; and
WHEREAS, City staff has reviewed the proposed final plat for compliance with the Port
Orchard Municipal Code, and recommends approval subject to adequate bonding/securities in
place to ensure the completion of remaining work in the event the Applicant should fail to
comply with the terms of the preliminary plat approval; and
WHEREAS, the Director of Public Works has determined that the proposed means of
sewage disposal and water supply are adequate as constructed or bonded, and recommends
approval of the final plat; and
WHEREAS, the City Engineer recommends approval of the final plat; and
WHEREAS, the City Community Development Director recommends approval of the final
plat; and
Page 114 of 221
Resolution No. ______
Page 2 of 2
WHEREAS, the Applicant has secured bonds guaranteeing completion of certain
improvements required by the Preliminary Plat Approval; and
WHEREAS, the City Council finds that the McCormick West Division 11 Final Plat
conforms to all terms and conditions of the preliminary plat approval, as approved by the
Hearing Examiner, and that said subdivision meets the requirements of Chapter 58.17 RCW and
other applicable state laws and local ordinances; and
WHEREAS, the City Council finds that the McCormick West Division 11 Final Plat
conforms to the applicable zoning requirements and Port Orchard’s Comprehensive Plan; now,
therefore;
THE CITY COUNCIL OF THE CITY OF PORT ORCHARD, WASHINGTON, HEREBY RESOLVES
AS FOLLOWS:
THAT: It is the intent of the Port Orchard City Council that the recitals set forth above
are hereby adopted and incorporated as findings in support of this Resolution.
THAT: The Port Orchard City Council approves the final plat for McCormick West
Division 11, as illustrated and as legally described in Exhibit A, attached hereto; and
THAT: The McCormick west Division 11 subdivision shall be governed by the terms of
approval of the final plat, and the statutes, ordinances, and regulations in effect at
the time of approval for a period of five years after final plat approval, unless the City
Council finds that a change in conditions has created a serious threat to the public
health or safety in the subdivision.
THAT: The Resolution shall take full force and effect upon passage and signatures
hereon.
PASSED by the City Council of the City of Port Orchard, SIGNED by the Mayor and attested
by the Clerk in authentication of such passage this 22nd day of February 2022.
Robert Putaansuu, Mayor
ATTEST:
Brandy Wallace, MMC, City Clerk
Page 115 of 221
DEDICATION
ACKNOWLEDGMENTS
SURVEYOR'S ACKNOWLEDGMENT
APPROVALS
SURVEYOR CERTIFICATE
VICINITY MAP
JOB NO.
SHEET OF
DESIGN
12100 NE 195th St, Suite 300 Bothell, Washington 98011 425.885.7877
CIVIL ENGINEERING
LANDSCAPE ARCHITECTURE
PLANNING
SURVEYING
20197
1 11
SITE INDEX
SITE
8
Page 116 of 221
JOB NO.
SHEET OF
DESIGN
12100 NE 195th St, Suite 300 Bothell, Washington 98011 425.885.7877
CIVIL ENGINEERING
LANDSCAPE ARCHITECTURE
PLANNING
SURVEYING
20197
2 11
LEGAL DESCRIPTION
RESTRICTIONS OF RECORD
DEVELOPMENT ENGINEERING NOTES
TRACT NOTES
LOT/HOUSE NUMBER DESIGNATION TABLES
EASEMENT PROVISIONS
PLAT NOTES
BUILDING PERMIT NOTE
MAINTENANCE COVENANT
LOT CORNER OFFSET TABLES
Page 117 of 221
OLD CLIFTON ROAD
RESULTANT PARCEL 1
RESULTANT PARCEL 4
JOB NO.
SHEET OF
DESIGN
12100 NE 195th St, Suite 300 Bothell, Washington 98011 425.885.7877
CIVIL ENGINEERING
LANDSCAPE ARCHITECTURE
PLANNING
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20197
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BASIS OF BEARINGS
REFERENCES
SURVEY NOTES
PROPERTY BOUNDARY
SCALE: 1" = 400'
Page 118 of 221
TRACT 1D
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TRACT 1B
TRACT 1K
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JOB NO.
SHEET OF
DESIGN
12100 NE 195th St, Suite 300 Bothell, Washington 98011 425.885.7877
CIVIL ENGINEERING
LANDSCAPE ARCHITECTURE
PLANNING
SURVEYING
20197
4 11
MCCORMICK VILLAGE DRIVE &TRACT 1A, 1B, 1C, 1D, 1L, & 1KDETAIL
SCALE: 1" = 160'
SEE SHEET 5
LEGEND
TRACT 1TFUTURE DEVELOPMENT TRACTSEE SHEET 11 FORBOUNDARY DIMENSIONS
TRACT 1SFUTURE DEVELOPMENT TRACTSEE SHEET 11 FORBOUNDARY DIMENSIONS
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JOB NO.
SHEET OF
DESIGN
12100 NE 195th St, Suite 300 Bothell, Washington 98011 425.885.7877
CIVIL ENGINEERING
LANDSCAPE ARCHITECTURE
PLANNING
SURVEYING
20197
5 11
SCALE: 1" = 150'
TRACT 1H DETAIL
SCALE: 1"=100'
SEE SHEET 4
TELFORD WAY SW &TRACT 1E, 1F, 1G, 1H DETAIL
LEGEND
DETAIL
NOT TO SCALE
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Page 120 of 221
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JOB NO.
SHEET OF
DESIGN
12100 NE 195th St, Suite 300 Bothell, Washington 98011 425.885.7877
CIVIL ENGINEERING
LANDSCAPE ARCHITECTURE
PLANNING
SURVEYING
20197
6 11
SCALE: 1" = 40'
SEE SHEET 7SEE SHEET 10
LEGEND
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JOB NO.
SHEET OF
DESIGN
12100 NE 195th St, Suite 300 Bothell, Washington 98011 425.885.7877
CIVIL ENGINEERING
LANDSCAPE ARCHITECTURE
PLANNING
SURVEYING
20197
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SCALE: 1" = 40'
SEE SHEET 8
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LEGEND
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JOB NO.
SHEET OF
DESIGN
12100 NE 195th St, Suite 300 Bothell, Washington 98011 425.885.7877
CIVIL ENGINEERING
LANDSCAPE ARCHITECTURE
PLANNING
SURVEYING
20197
8 11
SCALE: 1" = 40'
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SEE SHEET 5 FOR
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SEE SHEET 5 FOR
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SEE SHEET 4 FOR
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LEGEND
SEE SHEET 7
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12100 NE 195th St, Suite 300 Bothell, Washington 98011 425.885.7877
CIVIL ENGINEERING
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20197
9 11
SCALE: 1" = 40'
LEGEND SEE SHEET 10
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Page 124 of 221
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JOB NO.
SHEET OF
DESIGN
12100 NE 195th St, Suite 300 Bothell, Washington 98011 425.885.7877
CIVIL ENGINEERING
LANDSCAPE ARCHITECTURE
PLANNING
SURVEYING
20197
10 11
SCALE: 1" = 40'
LEGEND
SEE SHEET 9
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Page 125 of 221
OLD CLIFTON ROAD
TRACT 1S
TRACT 1T
JOB NO.
SHEET OF
DESIGN
12100 NE 195th St, Suite 300 Bothell, Washington 98011 425.885.7877
CIVIL ENGINEERING
LANDSCAPE ARCHITECTURE
PLANNING
SURVEYING
20197
11 11
TRACTS 1S & 1T DETAIL
SCALE: 1" = 400'
SEE MAP
SHEETS 6-10
SEE MAP
SHEETS 6-10
SEE TRACT
DETAIL SHEET 4
SEE TRACT
DETAIL SHEET 5
Page 126 of 221
CITY OF PORT ORCHARD
Development Director
216 Prospect Street, Port Orchard, WA 98366
Phone: (360) 874-5533 Fax: (360) 876-4980
planning@cityofportorchard.us
www.cityofportorchard.us
February 1, 2022
City Council
City of Port Orchard
216 Prospect Street
Port Orchard, WA 98366
Re: Recommendation of Approval of Final Plat for McCormick Woods West Division 11
(LU21-PLAT FINAL-02)
Dear City Council:
In accordance with RCW 58.17.150(2), I hereby state that I have reviewed the
subdivision documents for conformance to applicable land use regulations and to the
conditions in the Kitsap County Hearing Examiner Decision dated May 30, 2008 and
the subsequent administrative minor plat amendment decision issued by the City of Port
Orchard Development Director on February 12, 2021. An appropriate performance bond has
been received by the City of Port Orchard for certain civil improvements which adequately
satisfies the conditions of preliminary plat approval. An appropriate performance bond
has been received by the City of Port Orchard for certain landscaping improvements
which adequately satisfies the conditions of preliminary plat approval.
The subdivision complies with all terms and conditions of the approved preliminary plat that
are within the authority of the Department of Community Development. I therefore
recommend approval of the final plat.
Sincerely,
Nicholas Bond, AICP
City Development Director
Page 127 of 221
Page 128 of 221
BILL OF SALE
THIS BILL OF SALE is made and executed this :5(?,,() day of ·---:5"' "'1--.l uM:'.>/ , 20~
by and between _McCormick Development Corp __ , a Washington Limited Liability
Corporation, hereinafter called the "Granter" and the City of Port Orchard, a Municipal
Corporation, hereinafter called the "Grantee."
WITNESSETH:
That the Granter, for good and valuable consideration, the receipt of which is hereby
acknowledged, hereby conveys, sets over, assigns, transfers and delivers and warrants to the
City of Port Orchard ownership in the following described personal property situated in Kitsap
County, State of Washington, and installed by the Granter to date, TO WIT:
Public sewer mains and public road and storm improvements and associated appurtenances
constructed on-site at the McCormick West Division 11 PH 1 project located on parcel 082301-
1-015-2001. These improvements are further described in Exhibit A and itemized in Exhibit B,
both of which are attached hereto and incorporated herein by this reference.
The Granter hereby warrants that it is the lawful and sole owner of all the personal property
above conveyed, that such items are free from all liens and encumbrances, that the Granter
has the full power to convey and transfer the same, and that the Granter will defend the same
against the claims and demands of any and all persons lawfully making claims thereto. The
Granter further warrants that the execution of this Bill of Sale is an authorized act of said
Granter.
Dated at K,f2..KL,AA)O , Washington, this 3RP da~ of :=;:r&\NvAf:¥ , 20~
James N Tosti
P:\Surety fonns\Bill of Sa\e\approved by Interim Atty\Bill of Sale - Master Form
Page 129 of 221
[Remainder of page intentionally left blank]
P:\Surety forms\Bill of Salelapproved by Interim Atty\Bill of Sale - Master Form
Page 130 of 221
STATE OF WASHINGTON ./ d )ss
COUNTY OF ~+ )
On this 3~ day of ckll',\,}"<,-q , 202-2.,., before me personally appeared
~\/V't\ ;::::fg:rl:L , tq me known to be the managing member for M~ J2c,v:ti<>f.:~·"~A-- ~f. a limited liability corporation, that executed the within
and foregoing instrument, and acknowledged the said instrument to be the free and voluntary
act and deed of said corporation, for the uses and purposes therein mentioned, and on oath
stated that he/she was authorized to execute said instrument.
-rd Given under my hand and official seal this ~ day of +--....--
NOTARY PUBLIC
STATE OF WASHINGTON
AN DREW D MAR SHALL
MY COMMISSION EXPI RES
FEBRUAR Y 26, 2025
COMMISS ION NO. 164918
No a Public in and 's: State of Washington,
residing in tL-,!k-\..:~
My commission expires ()'Z,,{ '/....-<,a{ 1-5
CITY OF PORT ORCHARD
STATE OF WASHINGTON
COUNTY OF KITSAP
)ss
)
On this day and year above personally appeared before me, Mark R. Dorsey, who
executed the foregoing instrument, and acknowledged the said instrument to be the free and
voluntary act and deed of the City of Port Orchard for the uses and purposes therein mentioned,
and on oath states he is authorized to execute the said instrument.
Given un~W11ffiY1t~and and official seal this 7 day of ,)QQ1)l{Yv, 20...;;;;?
,,,,,,, NINE '''1111 /
~ ::,1c:..,,.'.'"•• ~/ /// ~ ·· -,ss· ·· '- 1 " ,•· «''" 10,, ••• 0 '/ ~ :'c} ,,-,s-.?. ~· .. J..-:.;. ~ : o~-t·.o ~ 2 : NOr, ~ ~-. ~
§(/)[~ ~-~ )}\: = Publ(hic in and fa the~ate of~ashington,
~ -1 · •. (1) 'llsuc . := · r,,_--•-1/fh ¥e. -~ - >;'.,_ .~ \>< • - --+ ............ ._UJ'f,,·a...,;.J.LJ-'t-L~-"-~~~-~-=--- \«' ~-~1'vr.-ber \~"~~-o·~,f My commission expires 1 ]-= !,- '/::' ••• _., ••• -< ' I
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11
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P \Surety forrns'S,{{ {,f sl.lJ1b~Pd~~d by lntenm Atty'S,11 of Sale - Master Form
Page 131 of 221
Exhibit A
List of Required Improvements
The following provides a general description of the improvements conveyed under
this Bill of Sale related to the "McCormick Woods West Div 11 Phase 1" project as
shown in the approved construction plans prepared by CORE Design with City
approval dated 7.21.2021.
1.) Specific improvements conveyed under this Bill of Sale include the following elements found
within this approved construction drawings set as follows.
a. Public sewer main extension, associated manholes and appurtenances within the plat
as shown on below plan sheets
i. CS.00-CS.11
b. Public water main extensions, associated fittings and appurtenances within the plat as
shown on below plan sheets.
i. C6.00-C6.11
c. Public road and storm improvements, associated structures and appurtenances within
the plat as shown on below plan sheets;
i. C4.00-C4.41
ii. C7.00-C7.07
The items, quantity and value of the improvements describedabove and conveyed
under this Bill of Sale are presented in Exhibit B and are associated with City of Port
Orchard Permit #s PW21-027and PW21-028.
Page 132 of 221
13 3 3 Ll o y d P a rkw a y • P o rt O rc ha rd , W A 9 836 7
(3 6 0 ) 87 6 -9 73 7 • F a x (3 6 0 ) 87 6 -9 7 6 0
GENERAL CONTRACTORS
1/4/2022
"Building 011 a Reputation o_fQua!ity"
Attn: Nick Tosti
McCormick Communities LLC
805 Kirkland Ave, Suite 200
Kirkland WA 98033
EXHIBIT B
RE: McCormick West Div. 11 Phase 1 Bill of Sale
Thank you for the opprotunity to provide you with the following Phase 1 Bill of Sale Cost Breakdown to do the work as per the set of
drawings dated Aug. 2021 by CORE DESIGN Engineering. Onsite native materials will be used as backfill.
Unit
Item Quantity Unit Cost SUB-TOTAL
ESTABLISH SUB-GRADE+/- 0.10 42,600 SY $1.50 $63,900.00
CRUSHED ROCK UNDER ASPHALT & CONCRETE
3" CSBC UNDER ASPHALT 26,786 SY $9.00 $241,074.00
SITE CONCRETE
18" ROLLED CURB & GUTTER 8,400 LF $12.00 $100,800.00
SIDEWALKS 26,400 SF $4.00 $105,600.00
APPROACHES 8,800 SF $5.00 $44,000.00
ASPHALT PAVING
HMA 26,786 SY $14.00 $375,004.00
PATH 4,173 SY $14.50 $60,508.50
STORM SYSTEM MAIN LINE
12" CPEP 2,000 LF $28.00 $56,000.00
18"PVC 1,500 LF $38.00 $57,000.00
24" PVC 1,100 LF $52.00 $57,200.00
TYPE 1 CATCH BASIN 39 EA $950.00 $37,050.00
48" TYPE 2 CATCH BASIN 31 EA $2,800.00 $86,800.00
WATER SYSTEM
SINGLE SERVICE 88 EA $1,650.00 $145,200.00
8" DI PIPE (INCLUDES FIELD LOCK & FITTINGS) 4,640 EA $39.00 $180,960.00
10" DI PIPE (INCLUDES FIELD LOCK & FITTINGS) 1,840 LF $54.00 $99,360.00
HYDRANTS 10 EA $6,000.00 $60,000.00
SEWER ONSITE
6" SEWER SERVICE 85 EA $950.00 $80,750.00
8" SEWER PIPE 2,550 LF $37.50 $95,625.00
10" SEWER PIPE 3,100 LF $44.75 $138,725.00
15" SEWER PIPE 1,390 LF $62.00 $86,180.00
SSMH (GU LINED) 40 EA $6,400.00 $256,000.00
STRIPING & SIGNAGE LS $12,500.00 $12,500.00
SUB TOTAL
-usE TA)( INCWDED IN ITEIIS usnw 9%W.S.S.T
TOTAL
CONDUIT PURCHASE & INSTALL
2" $ 2.90 LF
3" $ 4.80 LF
4" $ 6.40 LF
CONDUIT INSTALL "ONLY"
2" $ 2.00 LF
3" $ 2.80 LF
4" $ 3.70 LF
We specifically exclude the following items.
TOTAL TAX
$63,900.00 SALES
$435,512.50 t:~i:J
$294,050.00
$485,520.00 SALES
$657,280.00
$12,500.00
$2,440,236.50
$49,447.80
$2,489,684.30
Engineering and Survey, Staking, Permits Bonds and Fees, Contaminated or Hazardous Materials, Geotechnical Services and/or Compaction Testing,
Import/Export of soils due to wet weather conditions. Relocation of Existing Utilities (I.E GAS & ELECTRICAL), de-watering, Import Topsoils or Compost,
water proofing, temporary fencing, de-commissioning of existing wells and septic systems or anything not specifically stated above.
Page 133 of 221
CITY OF PORT ORCHARD
PERFORMANCE BOND FOR PRIVATE SECTOR PROJECTS
(N ote: C ity m ust receive the tw o years M aintenance/W arranty B ond prior to releasing Perfo rm ance B ond)
PROJECT or PERMIT # PW21-027 & PW21-028
CONTRACT#
SURETY BOND #: 0807263 ------------------ DATE ACCEPTED:
PROJECT COMPLETION DA TE:
RE: Project Name: McCormick West Div 11 Phase 1
Owner/Developer/Contractor: McCormick Development Corp.
Project Location: Port Orchard WA
KNOW ALL PERSONS BY THESE PRESENTS: That we, McCormick Development Corp.
(hereinafter called the "Principal"), and Barco National Insurance Company a corporation organized
under the laws of the State of Illinois , and authorized to transact surety business
in the State of Washington (hereinafter called the "Surety"), are held and firmly bound unto the City of Port
Orchard Washington in the sum of One Million Ninety Six Thousand Six Hundred Sixty Eight and no/100 Dollars
' ' ($ I 096 668.00 ), 150% of the total construction amount for Private Developers, lawful
money of the United States of America, for the payment of which sum we and each ofus bind ourselves, our
heirs, executors, administrators, successors and assigns, jointly and severally, by these presents. THE
CONDITIONS of the above obligation are such that:
WHEREAS, the above named Principal has entered into a certain agreement with the City, to perform
the following project within the City: McCormick West Div. 11 Phase 1
________________________ ;and
WHEREAS, the agreement with the City requires that certain improvements be made as part of the
project; and that such improvements be constructed in full compliance with City standards, and the plans and
specifications as required by the City; and
WHEREAS, the agreement with the City requires that the improvements are to be made or constructed
within a certain period of time, unless an extension is granted in writing by the City; and
NOW, THEREFORE, it is understood and agreed that this obligation shall continue in effect until
released in writing by the City of Port Orchard, but only after the Principal has performed and satisfied the
following conditions:
A. Conditions.
1. The improvements to be constructed by the Principal include: (Insert complete description here or
add summary here and refer to a separate detailed description attached as Exhibit A.)
Street signs, M ailbox CBU's, M onum ents, Striping, Streetlights, Jo int Ut ility Trench and Jo int Ut ility Vaults,
Concrete Sidew alk, A sphalt, and Survey/Engineering for As-Builts - See attached Exh ibit "A"
Page 1 of 6
Surety Forms\PW Civil\Approved by Lighthouse Atty\SEC 6-27-16\05-01-20 Page 134 of 221
2. The Principal m ust constr uct the im pro vem ents to conform to the design, location, m aterials and
other specifications fo r the indicated site im pro vem ents, as required by the City in the above
refe renced project. In addition, the Principal m ust constr uct the im pro vem ents according to the
applic able ordinances and standar ds of the City and/or state statu tes, as the sam e now exist or ar e
hereafter am ended.
3. The Prin cipal m ust have com pleted all im pro vem ents required by the above-refe renced conditions,
plans an d City file by unl ess an ext ension is gra nted by the City .
4. The Princi pal m ust have paid all sums ow ing to laborers, contra ctors, m echanics, subcontra ctors,
m aterial-m en and suppliers or others as a result of such w ork fo r w hi ch a lien against any City
property has arisen or m ay ar ise. The Principal shall in dem nify and hold har m less the City of Pott
Orchar d, its officers, offi cials and agents from an y cl aim for such paym ent.
5. _The Principal m ust obtain acceptan ce by the City of the w ork com ple ted, all on or befo re thirty
(30) days after the com pletion date set fo rth in Section A (3) above. Therefore, a Perform ance
Bond in the am ount of 150% of the an ticipated constru ction costs to guaran tee the W ork to be
com pleted shall be pro vided prior to the com m encem ent of W ork an d w ill be released upon
com pletion and acceptan ce of all W ork an d upon receipt of the 2-year M aintenance/W ar ra nty
Bond. A ll bon us m ust Le in a fo rm appro ved by the City .
B.
6. The Principal shall indemni fy and hold harm less the City of Port O rchard, its officers, officials
an d agents from any cl aim s relating to defe ct(s) in an y of the w orkm anship entering into any part
of the w ork or designated equipm ent covered by the contra ct between the Principal and the City .
Once the w ork has been com pleted and accepted by the City, and all other conditions of this Bond
have been satisfied, this Perfo rm ance bond w ill be releas ed and replaced w ith a tw o (2) year
M aintenance Bond, not to exceed the sum of * dollar s
($ 146,222.4 0 ), 20% of the total contra ct am ount. This hold harm less an d
indem nification agreem ent shall sur vive the expira tion of this Bond.
*O ne H undred Forty Six Thousand Tw o H undred Tw enty Tw o and 40/100
Defa ult.
1. If the Principal defaults and does not perform the above conditions within the time specified, then
the Surety shall, within twenty (20) days of demand of the City, make a written commitment to
the City that it will either:
a). remedy the default itself with reasonable diligence pursuant to a time schedule
acceptable to the City; or
b). tender to the City within an additional ten (10) days the amount necessary, as
determined by the City, for the City to remedy the default, up to the total bond amount.
Upon completion of the Surety's duties under either of the options above, the Surety shall then
have fulfilled its obligations under this bond. If the Surety elects to fulfill its obligation pursuant
to the requirements of subsection B(l)(b), the City shall notify the Surety of the actual cost of the
remedy, upon completion of the remedy. The City shall return, without interest, any overpayment
made by the Surety, and the Surety shall pay to the City any actual costs, which exceeded the City's
estimate, limited to the bond amount.
2. In the event the Principal fails to complete all of the above referenced improvements within the
time period specified by the City, then the City, its employees and agents shall have the right at
the City's sole election to enter onto said property described above for the purpose of completing
the improvements. This provision shall not be construed as creating an obligation on the part of
the City or its representatives to complete such improvements.
Page 2 of 6
Surety Forms\PW Civil\Approved by Lighthouse Atty\SEC 6-27-16\05-01-20 Page 135 of 221
C . C o rr ec t ion s . An y c o rr ec t ion s r e q u ire d b y th e C ity s h a ll b e c o m m e n ce d w ithi n s e v e n (7 ) d a y s o f
n o t ifi cation b y t h e C ity an d c o m p le t e d w it h in thi rty (3 0 ) d ay s o f th e d a te o f n o tifi c atio n . If th e w o r k is
n o t p e r fo rm e d in a t im e ly m ann e r , th e C ity s h a ll h av e th e r ig h t , w it h o u t r e c o u r s e to le g a l a c tio n , to ta k e
s u c h ac t ion u n d e r th is B o n d a s d e s cr ib e d in S e c t io n B a b o v e .
D . E x t e n s ion s a n d C h a n g e s . N o c h an g e , e xt e n s io n o f t im e , a lt e ra t ion o r a d d itio n to th e te rm s o f th e
c o n tra c t o r to th e w o r k to b e p e rfo rm e d b y th e P r in c ip a l o r th e s p ec ifi catio n s ac c o m p a ny in g th e sa m e
s h a ll in a n y w a y a ffe c t t h e o b lig at io n o f t h e P r in c ip a l o r S u r e ty o n thi s b o nd , u n le s s th e C ity s p ec ifi ca lly
a g r e e s , in w r it ing , to s u c h a lt e ra tio n , a d d it io n , e x te n s ion o r c h a n g e . T h e S u r e ty w a iv e s n o t ice o f a ny
s u c h c h a n g e , e x te n s ion , a lt era t ion o r a dd it ion th e r e u n d e r . T h e S ur e ty h e r e by ag r ee s th a t m od ifi ca tio n s
an d c h an g e s m ay b e m a d e in th e te r m s a n d p ro v is ion s o f th e a fo r e s a id c on tra c t w ith o u t n o tic e to S u r e ty
a nd a n y s u c h m o d ifi c atio n s o r c h an g e s in c r e as in g th e t o ta l am ou n t to b e p a id th e P r in c ip a l s h a ll
a u t o m a t ic a ll y in c r e as e th e o b lig a tio n o n th is P e r fo r m a n c e Bo n d in a lik e am o u n t.
E . E n fo r c e m e n t. I t is s p ec ifi c a ll y a gr ee d b y a n d b e tw e e n th e p a rt ie s t h a t in th e e v e n t any le g a l ac tio n m u s t
b e t a k e n t o e n fo r c e th e p ro v is io n s o f th is b o n d o r to c o ll e c t s a id b ond , th e p r e v a ili n g p a rty s h a ll b e
e n t it le d t o c o ll ec t it s c o s t s a n d r e a s on a b le att o rn e y fe e s as a p art o f th e r e aso n a ble c o s ts o f s e c u r in g th e
o b li g at ion h e r e u n d e r . In th e e v e n t o f s e tt le m e n t o r r e s o lu t io n o f th e s e is s u e s p r io r to th e fii ing of any
suit, the actual costs incurred by the City, including reasonable attorney fees, shall be considered a part
of the obligation hereunder secured. Said costs and reasonable legal fees shall be recoverable by the
prevailing party, not only from the proceeds of this bond, but also over and above said bond as a part
of any recovery (including recovery on the bond) in any judicial proceeding. The Surety hereby agrees
that this Agreement shall be governed by the laws of the State of Washington. Venue of any litigation
arising out of this Agreement shall be in Kitsap County Superior Court.
F. Bond Expiration. This bond shall remain in full force and effect until the obligations secured hereby
have been fully performed and a Maintenance Bond as described in Section A(6) of this Bond has
been submitted to the City, in a form suitable to the City and until released in writing by the City.
Page 3 of 6
Surety Forms\PW Civil\Approved by Lighthouse Atty\SEC 6-27-16\05-01-20 Page 136 of 221
DATED this __ 1_8_th day of __ J_a_nu_a_r_y , 2o__E.__.
SURETY COMPANY PRIN CIPAL
(Signat~ure m~st besnota~rized)
By: _ __,_----'----+---"---------,,"'--+------
Its A~~ 1rJ1h·lll-Y
Print Name: Jim S. Kuich Print Name: /1?/c-//fJ.tz_ £~~
Business Name: Barco national Insurance Company Business Name: McCormick Development Corp.
Business Address: PO Box 3018 Business Address: 805 Kirkland Ave., Suite 200
City/State/Zip Code: Bothell, WA 98041-3018 City/State/Zip Code: Kirkland, WA 98033
Telephone Number: (425)489-4500 Telephone Number: ( 425)894-6382
CITY OF PORT ORCHARD L
ACCEPTED DATE: •••••., '2,4," 202- "Z... I
ITS: CITY ENGINEER
BUSINESS NAME: CITY OF PORT ORCHARD
ADDRESS: 216 PROSPECT STREET
CITY/STATE/ZIP: PORT ORCHARD, WA 98366
PHONE NUMBER: 360-876-4991 -------------
Page 4 of 6
Surety Forms\PW Civil\Approved by Lighthouse Atty\SEC 6-27-16\05-01-20 Page 137 of 221
FORM P-1 NOTARY BLOCK
(Use for Individual/Sole Proprietor Only)
STATE OF WASHINGTON
COUNTY OF 'K.l }vq,y
)
) ss.
)
I certify that I know or have satisfactory evidence that ---~~-~~~_,_---#-- is the
person who appeared before me, and said person acknowledged that ('1§/she) signed t is instrument, and
acknowledged it to be (~/her) free and voluntary act for the uses and purposes mentioned in the instrument.
Dated: / -! ~6 ~ -;J{;i2;:l_
~R4tf1
prmtname
NOTARY PUBLIC in and for the
State of Washington, residing
at: moc1;n (Q t7 }y
My Commission expires: } }-\Q .... ~
FORM P-2 NOTARY BLOCK
(Use for Partnership or Corporation Only)
ST A TE OF WASHING TON
COUN TY OF ~11(
)
) ss.
)
(he/she) was authorized to exec te the instrumer t and acknowledged it to be (his/her) free and voluntary
act for the uses and purposes mentioned in the instrument.
NOTAR Y PUBLIC
STATE OF W ASHINGTON
AN DREW D M AR SHAl.1
MY COMM ISSION EXPI RES
FEBRUAR Y 26, 2025
COMM ISS ION NO. 164 918
signa A~ 1) NlJcJS k ({
print name
NOTARY PUBLIC in and for the
State of Waslling~n, residing
at: tL-!k. r;v...J
My Commission expires: 02,/u{z...5'"
Page 5 of 6
Surety Forms\PW Civil\Approved by Lighthouse Atty\SEC 6-27-16\05-01-20
Page 138 of 221
FORM P-3 NOTARY BLOCK
(Use for Surety Company Only)
)
) ss.
KING COUNTY OF )
ST ATE OF WASHINGTON
I certify that I know or have satisfactory evidence that __ J_im_S_._K_u_i_c_h is the
person who appeared before me, and said person acknowledged as the Attorney-in-fact
of Harco National Insurance Company that (he/she) signed this instrument, on oath stated that
(he/she) was authorized to execute the instrument and acknowledged it to be (his/her) free and voluntary
act for the uses and purposes mentioned in the instrument.
print name
NOTARY PUBLIC in and for the
State of Washington, residing
at: Bothell, WA
My Commission expires: 9/21/2023
Page 6 of6
Surety Forms\PW Civil\Approved by Lighthouse Atty\SEC 6-27-16\05-01-20
Page 139 of 221
. ' 1 ,
POWER OF ATTORNEY
HARCO NATIONAL INSURANCE COMPANY
INTERNATIONAL FIDELITY INSURANCE COMPANY
M e m be r co m p a nies of IA T Ins uran ce G rou p, Headquart ered: 4200 Six Forks R d, Suite 1400, Raleigh, NC 27609
K N O W A L L M E N B Y T H E S E PR E SE N T S : T ha t HA R C O NA TIO N A L IN S U R A N C E CO M PA N Y , a corpora tion organized and existing under the law s of
the S tate of Ill ino is , and INTER NATIO NA L FID E LI TY INSURA NCE COM PANY, a corporation organized and existing under the law s of the State of New
Je rse y , and hav in g the ir principal offi ce s lo cate d respectively in the cities of R olling M eadows, Ill inois and N ew ark, New Jersey, do hereby constitute and
ap point
JIM S. KUICH, SARAH H. BEHRENS, DANIELLE ENRIQUEZ, EMMA C. DOLESHEL, HEATHER L. ALLEN, ANDY PRILL,
THERESA A. LAMB, STEVE WAGNER, MICHAEL A. MURPHY, JIM W. DOYLE, JULIE M. GLOVER, CHAD M. EPPLE
Bothell, WA
the ir true and lawf ul attorn ey(s)-in-fact to execute, se al and de liver fo r and on its behalf as surety , any and all bonds and undertakings, contra cts of
in de m nity and othe r w riting s obligatory in the na ture thereof, w hich are or m ay be allow ed, required or perm itted by law , statute, rule, regulation, contract
or othe rw ise , an d the executio n of such in strum ent(s) in pursuance of these presents, shall be as binding upon the said HARCO NATIONAL
IN SURA NC E CO M PANY and INTERNATIONA L FIDELITY INSURA NCE CO M PANY, as fully and am ply, to all intents and purposes, as if the sam e had
be en du ly exe cute d and acknow le dge d by the ir regularly elected offi cers at their principal offi ces.
T his P ow er of A tto rn e y is execute d, and m a y be revoked , pursuant to and by authority of the By-Law s of HARCO NATIONAL INSURANCE COMPANY
an d INTERNATIO NA L FIDELI TY INSURA NCE CO M PA NY and is granted under and by authority of the fo llow ing resolution adopted by the Board of
D irectors of IN T E R N AT IO N A L FID E LI TY IN S U R A NC E C O M PA N Y at a m eeting duly held on the 13th day of Decem ber, 2018 and by the Board of
D irectors of HA RC O NA TIO NAL INSURA NCE CO M PANY at a m eeting held on the 13th day of D ecem ber, 2018.
"R ESO LVED , th at (1) the C h ief Exe cutive O ffi cer, President, Executive V ice President, Senior V ice President. Vice President, or Secretary of the
C o rpo ra tion sh a ll have the pow er to appo in t, and to revoke the appointm ents of, Attorn eys-in-Fact or agents w ith pow er and authority as defined or lim ited
in the ir respe ctive pow ers of attorn ey, an d to execute on behalf of the C or poration and affi x the Corporation's seal thereto, bonds, undertakings,
recogn iza nces, co ntracts of inde m n ity and othe r w ritten obligations in the nature thereof or related thereto; and (2) any such O ffi cers of the C orpora tion
m a y app oint and revoke the appointm e nts of jo int-contro l custodians, agents fo r acceptance of pro cess, and Attorn eys-in-fa ct w ith authority to execute
w a ive rs and co nse nts on be half of the C o rpo ra tion; and (3) the signature of any such O ffi cer of the C orporation and the Corporation's seal m ay be affi xed
by facsim ile to any pow er of attorn ey or cert ification given fo r the execution of any bond, undertaking, recognizance, contract of indem nity or other written
ob lig atio n in the na tu re the reof or rela te d the reto, such sig nature and seals w hen so used w hether heretofore or hereafter, being hereby adopted by the
C o rpora tio n as the orig inal sig nature of su ch offi cer and the original seal of the C orporation, to be valid and binding upon the Corporation w ith the sam e
force and effect as thou gh m an ually affi xed ."
IN W IT N E S S W H E R EO F, HA RCO NATIO NAL INSURANCE COMPANY and INTERNATIONAL
FIDELI TY INSURA NCE COM PANY have each executed and attested these presents
on th is 31st day of De cem ber, 2020
S TA T E O F N E W JE R S EY
C ou nty of E sse x
STATE OF ILLI N O IS
County of C ook
Kenneth Chapm an
Executive V ice President, H arco N ational Insurance Com pany
and Intern ational Fidelity Insurance Com pany
O n this 31st day of D e cem b er, 202 0 , befo re m e cam e the individual w ho executed the preceding instrum ent, to m e personally know n, and,
be ing by m e du ly sw o rn , sa id he is the the re in de scribed and authorized offi cer of HARCO NATIONAL INSURA NCE COMPANY and
INTER NA TIO NA L FID ELI TY INSURANCE CO M PA NY; that the seals affi xed to said instrum ent are the Corporate Seals of said Com panies; that the
said C o rpo ra te S e a ls an d his sig nature w ere du ly affi xed by order of the Boards of Di rectors of said Com panies.
IN T E S T IM O N Y WH E R E O F, I have hereunto set m y hand affi xed m y Offi cial Seal, at the City of New ark,
N e w Jersey the day and year first above w ritten.
CERTIFICATION
Shirelle A. O utley a Notary Public of New Jersey
M y C om m ission Expires April 4, 2023
I, the und e rs igne d offi ce r of HA RCO NATIONA L INSURA NCE CO M PANY and INTERNATIONAL FIDELITY INSURA NCE COMPANY do hereby certify
that I have com pa red the fo regoing copy of the P ow er of A ttorn ey and affidavit, and the copy of the Sections of the By-Law s of said Com panies as set
fo rt h in sa id P ow e r of A ttorn ey, w ith the orig in a ls on file in the hom e offi ce of said com panies, and that the sam e are cor rect tra nscripts thereof, and of the
w hole of th e sa id orig ina ls, and that the sa id P ow er of A ttorn ey has not been revoked and is now in full fo rce and effect.
IN TES T IM O N Y W H E R E O F , I have he reu nto se t m y hand on this day, ~ VL ~ [ fl t,AJ ·Z, V a ~ A 01083
Irene M artins, Assistant Secretary
Page 140 of 221
I.
Page 141 of 221
' '
E X H IB IT "A "
MCCORMICK WEST DIV 11 PHASE 1 -WORK NOT COMPLETE AT PLAT RECORDATION
PERFO RM ANCE BOND W KS
11/28/2021
DESCRIPTIO N O F W ORK ITEM : QUANTITY: UNIT: UNIT PRICE: TOTAL COST:
l,KU-:,t:U KV\.,!'. UI\IUt:K A-:,t-'r1/-\L I (g/
(GLENEAGLE 0+50-5+50) AND ROAD B
(ST A. 15+60-40+00) 11,667.00 SY $4.00 $46,668.00
Avt-'H/-\L I nlVI/-\ t-'/-\Vll'l\.;J <gJ (l:iLt:Nt:Al:iLt: u+oo-
5+50) AND ROAD B
(ST A. 15+60-40+00) 11,667.00 SY $11.00 $128,337.00
1-'HA::it: UNt: A::it-'HAL I 1-'A I H 2,667.00 SY $10 .00 $26,670.00
CKU::iHt:U KU1.,K t-VK P1 A::il-'HAL I 1-'A I H 2,667.00 SY $4.00 $10 ,668.00
GLENEAGLt: & "B" I K/-\rt-ll, 1.,IRCLE CUKt:l 400.00 LF $9.00 $3,600.00
ll:iLt:l\lt:Al:iLt: ;::,Iut:VVALK u+eo - o+oo (vvc ,:, 1 t:KLY
HALF OF GLENEAGLE) 560.00 SY $27.00 $15,120.00
IKepIacemem or previousry mstaueo oispersron
trenches @ McCormick Village Drive 6.00 EA $2,850.00 $17,100.00
unstauanon or 1 u \t:AJ urspersai 1 rencnes @ Lots b,
8, 9, 10, 21, 24, 26, 59 (Dispersions @ 67 & 70 will
be included with Div. 11 phase 2 work.) 8.00 EA $3,550.00 $28,400.00
It:iIoretenuon swaIe@ Mc1.,ormIcK vmaqe unve ana
"Road B" 5,650.00 LF $2.90 $16,385.00
ll:iraveI snoutcers on Ivic1.,ormIcK vmaqe unve ana
"Road B" 11,640.00 LF $3.10 $36,084.00
111:C,ldlldllUII. II l:C,ldll -.JU Lr UI :C,IUc-vvaU\ dl C
3+50 - 4+50 and "H" 4+50 - 8+00; Install 600 LF of
sidewalk on both sides of "F" 23+00 - 26+00; Install
300 LF both sides of "J" 2+50 - 4+00, Install 200 LF
both sides of "K" 7+00 - 8+00 861.11 SY $27.00 $23,250.00
,L!:l) t:A ::;IaewaIK erockouts X o'x 10·@ l,J,K,t:, t- 155.56 SY $27.00 $4,200.00
AUA Kamps: (4J@ ··t:·· o+ou; {LJ@ ··1 t+uo; {LJ@
"J" 5+00; (6) @ "F" 26+50, 28+ 75 14.00 EA $1,800.00 $25,200.00
storm improvements mcruomq qamons, spmways,
basin 1.00 LS $24,600.00 $24,600.00
MONUMENTS 33.00 EA $425.00 $14,025.00
FENCE - NORTH EAST POND "A" 1,900.00 LF $20.00 $38,000.00
FENCE - EAST BOND "B" 2,750.00 LF $20.00 $55,000.00
STRIPING & SIGNAGE DIV. 11, PHASE 1 1.00 LS $3,500.00 $3,500.00
STREET LIGHTS 45.00 EA $3,800.00 $171,000.00
STREET LIGHT POLE BASES 45.00 EA $120.00 $5,400.00
DRY UTILITY TRENCH EXCAVATE & BACKFILL 3,990.00 LF $9.50 $37,905.00
Total Cost: $73 1,112.00
150% Bond Am ount: $1,096,668.00!
Page 142 of 221
Page 143 of 221
CITY OF PORT ORCHARD
LANDSCAPE PERFORMANCE BOND
McCormick West Divisions 11 and 12 Name of Project _
Project Location _P_o_rt_O_rc_h_a_r_d _
Project/ Application# PW 21-027 PW 21-028
Perform ance Bond Amount$ 1,498,099 ------------------
Bond # 08072 69
Know all men by these presents: That whereas the City of Port Orchard, State of Washington has
issued a permit to McCormick Development Corp (Contractor) hereinafter designated
as the "Principal" a permit for the construction of the project designated --------- McCormick West Divisions 11 and 12 , Port Orchard, Washington all as hereto
attached and made a part hereof and whereas, said principal is required under the terms of said
contract to furnish a bond for the faithful performance of said contract:
NOW, THEREFORE, we, the principal, and Harco National Insurance Company
(Surety), a corporation, organized and existing under and by virtue of the laws of the State of
Illinois , duly authorized to do business in the State of Washington, as surety,
are held and firmly bound unto the City of Port Orchard, Washington, in the sum of:
One Million Four Hundred Ninety-Eight Thousand and Ninety Nine Dollars
($ 1,498,099 ) 150% Total Contract Amount
lawful money of the United States, for the payment of which sum well and truly to be made, we
bind ourselves, our heirs, executors, administrators, successors and assigns, jointly and severally,
firmly by those presents.
THE CONDITION OF THIS OBLIGATION IS SUCH, that if the above bonded principal, his or
its heirs, executors, administrators, successors, or assigns, shall in all things stand to and abide
by, and well and truly keep and perform the covenants, conditions and agreements in the said
contract, and shall faithfully perform all the provisions of such contract and shall also well and
truly perform and fulfill all the undertakings, covenants, terms, conditions and agreements of any
and all duly authorized modifications of said contract that may hereafter be made, at the time and
in the manner therein specified and shall pay all laborers, mechanics, subcontractors, and
material men, and all persons who shall supply such person or persons, or subcontractors, with
provisions and supplies for the carrying on of such work, on his or their part, and shall indemnify
and save harmless the City of Port Orchard, Washington, their officers and agents from any
claim for such payment; and shall further save harmless and indemnify said City of Port Orchard,
Washington, from any claims relating to defect or defects in any of the workmanship entering
into any part of the work or designated equipment covered by said contract. Once the work has
been completed and accepted by the City of Port Orchard this Performance Bond will be released
and replaced with a 2 year Maintenance Bond not to exceed the sum of:
One Million Two Hundred Forty-Eight Thousand and Four Hundred Sixteen Dollars ($ 1,248,416 )
125% Total Contract Amount. This hold harmless and indemnification agreement shall survive
the expiration of this bond.
City of Port Orchard Landscape Performance Bond Page 1 of2
Page 144 of 221
And the said Surety, for value received, hereby further stipulates and agrees that no change,
extension of time, alteration or addition to the terms of the contract or to the work to be
performed thereunder or the specifications accompanying the same shall in any way affect its
obligation on this bond, and it does hereby waive notice of any change, extension of time,
alterations or additions to the terms of the contract or the work or to the specifications. The
Surety hereby agrees that modifications and changes may be made in the terms and provisions of
the aforesaid Contract without notice to Surety, and any such modifications or changes
increasing the total amount to be paid the Principal shall automatically increase the obligation of
the Surety on this Performance Bond in a like amount, such increase, however, not to exceed
twenty-five percent (25%) of the original amount of this bond without the consent of the Surety.
IN WITNESS WHEREOF, the said principal and the said surety have caused this bond and two
(2) counterparts thereof to be signed and sealed by their duly authorized officers this _8_th __
day of February , 20~.
Harco National Insurance Company
Surety ByS}'«f !~
Silfigt e
Jim S. Kuich
Title 1
805 Kirkland Ave., #200
Print Name
Attorney-in-fact
Title
PO Box 3018
Mailing Address
Kirkland, WA 98033
Mailing Address
Bothell, WA 98041-3018
City, State, Zip Code
(425)894-6382
City, State, Zip Code
( 425)489-4500
Phone Number Phone Number
j im.kuich@hubinternational.com
Email Address Email Address
Accepted by the City of Port Orchard this day of , 20_
By _
Signature
Printed Name
Title
C ity of Port O rchar d L an dscape Perform ance B ond Page 2 of2
Page 145 of 221
POWER OF ATTORNEY
HARCO NATIONAL INSURANCE COMPANY
INTERNATIONAL FIDELITY INSURANCE COMPANY
M ember com panies of IAT Insurance Group, Headquartered: 4200 Six Forks Rd, Suite 1400, Raleigh, NC 27609
KNOW ALL MEN BY THESE PRESENTS: That HARCO NATIONAL INSURA NCE COMPANY, a corporation organized and existing under the laws of
the State of Illinois, and INTERNATIONAL FIDELITY INSURA NCE COMPANY, a corporation organized and existing under the laws of the State of New
Jersey, and having their principal offices located respectively in the cities of Rolling Meadows, Illinois and Newark, New Jersey, do hereby constitute and
appoint
JIM S. KUICH, SARAH H. BEHRENS, DANIELLE ENRIQUEZ,-EMMA C. DOLESHEL, HEATHER L. ALLEN, ANDY PRILL,
THERESA A. LAMB, STEVE WAGNER, MICHAEL A. MURPHY, JIM W. DOYLE, JULIE M. GLOVER, CHAD M. EPPLE
Bothell, WA
their true and lawful attorney(s)-in-fact to execute, seal and deliver for and on its behalf as surety, any and all bonds and undertakings, contracts of
indemnity and other writings obligatory in the nature thereof, which are or may be allowed, required or permitted by law, statute, rule, regulation, contract
or otherwise, and the execution of such instrument(s) in pursuance of these presents, shall be as binding upon the said HARCO NATIONAL
INSURA NCE COMPANY and INTERNATIONAL FIDELITY INSURA NCE COMPANY, as fully and amply, to all intents and purposes, as if the same had
been duly executed and acknowledged by their regularly elected officers at their principal offices.
This Power of Attorney is executed, and may be revoked, pursuant to and by authority of the By-Laws of HARCO NATIONAL INSURA NCE COMPANY
and INTERNATIONAL FIDELITY INSURA NCE COMPANY and is granted under and by authority of the following resolution adopted by the Board of
Directors of INTERNATIONAL FIDELITY INSURA NCE COMPANY at a meeting duly held on the 13th day of December, 2018 and by the Board of
Directors of HARCO NATIONAL INSURA NCE COMPANY at a meeting held on the 13th day of December, 2018.
"RESOLVED, that (1) the Chief Executive Officer, President, Executive Vice President, Senior Vice President, Vice President, or Secretary of the
Corporation shall have the power to appoint, and to revoke the appointments of, Attorneys-in-Fact or agents with power and authority as defined or limited
in their respective powers of attorney, and to execute on behalf of the Corporation and affix the Corporation's seal thereto, bonds, undertakings,
recognizances, contracts of indemnity and other written obligations in the nature thereof or related thereto; and (2) any such Officers of the Corporation
may appoint and revoke the appointments of joint-control custodians, agents for acceptance of process, and Attorneys-in-fact with authority to execute
waivers and consents on behalf of the Corporation; and (3) the signature of any such Officer of the Corporation and the Corporation's seal may be affixed
by facsimile to any power of attorney or certification given for the execution of any bond, undertaking, recognizance, contract of indemnity or other written
obligation in the nature thereof or related thereto, such signature and seals when so used whether heretofore or hereafter, being hereby adopted by the
Corporation as the original signature of such officer and the original seal of the Corporation, to be valid and binding upon the Corporation with the same
force and effect as though manually affixed."
IN WITNESS WHEREOF, HARCO NATIONAL INSURA NCE COMPANY and INTERNATIONAL
FIDELITY INSURA NCE COMPANY have each executed and attested these presents
on this 31st day of December, 2021
STATE OF NEW JERSEY
County of Essex
STATE OF ILLINOIS
County of Cook
Kenneth Chapman
Executive Vice President, Harco National Insurance Company
and International Fidelity Insurance Company
On this 31st day of December, 2021 , before me came the individual who executed the preceding instrument, to me personally known, and,
being by me duly sworn, said he is the therein described and authorized officer of HARCO NATIONAL INSURA NCE COMPANY and
INTERNATIONAL FIDELITY INSURA NCE COMPANY; that the seals affixed to said instrument are the Corporate Seals of said Companies; that the
said Corporate Seals and his signature were duly affixed by order of the Boards of Directors of.said Companies.
IN TESTIMONY WHEREOF, I have hereunto set my hand affixed my Official Seal, at the City of Newark,
New Jersey the day and year first above written.
CERTIFICATION
Shirelle A. Outley a Notary Public of Ne~
My Commission Expires April 4, 2023
I, the undersigned officer of HARCO NATIONAL INSURA NCE COMPANY and INTERNATIONAL FIDELITY INSURA NCE COMPANY do hereby certify
that I have compared the foregoing copy of the Power of Attorney and affidavit, and the copy of the Sections of the By-Laws of said Companies as set
forth in said Power of Attorney, with the originals on file in the home office of said companies, and that the same are correct transcripts thereof, and of the
whole of the said originals, and that the said Power of Attorney has not been revoked and is now in full force and effect.
IN TESTIMONY WHEREOF, I have hereunto set my hand on this day,
A01083
Irene Martins, Assistant Secretary Page 146 of 221
22 2 1 0 N E 8 0t h S tr e e t
R e d m o nd , W A 98 0 53
M A IN (4 2 5 ) 8 68 -1 5 1 5 F AX (42 5 ) 8 6 8 -48 2 7
C O N . LI C . # B RA N DN l9 75 PP
BASE
PROPOSAL
MCCORMICK WEST DIV 11 AND 12-WORK NOT COMPLETE AT PLAT RECORDATION
Approved Landscape Plans - PW20-077
LANDSCAPE PERFORMANCE BOND WKS
2/3/2022
DESCRIPTION OF WORK ITEM: QUANTITY: UNIT: UNIT PRICE: TOTAL COST:
AU I UIVll'I l:ILALt: IVIAt'Lt:, Z" t;AL 459.00 EA $354.00 $162,486.00
Vli'lt: IVIAt'Lt:, tHf 206.00 EA $186.00 $38,316.00
KUU:SA UUl,:;WUUU, Z' t;AL 218.00 EA $250.00 $54,500.00
UUUl,:;LA:S t-lK 291.00 EA $194.00 $56,454.00
l:IIU .::,vvALt: Kt:L::it: r UUl,:;VVUUU, 2 GALLON 877.30 EA $22.50 $19,739.25
l:IIU .::,WALt: .::,vv'UKU rt:KN, z GALLON 1,914.00 EA $19.30 $36,940.20
BIO SWALE KARL FORESTER FEATHER REED GRASS, 2 GALLON 1,392.00 EA $22.50 $31,320.00
BIO SWALE SLOUGH SEDGE, 1 GALLON 7,482.00 EA $10.00 $74,820.00
BIO SWALE STAR OF GOLD DAY LILY, 1 GALLON 2,610.00 EA $12.40 $32,364.00
BIOSWALE SALAL 13,533.00 EA $10.80 $146,156.40
BIOSWALE SEED MIXTURE 7.00 ACRE $3,484.00 $24,388.00
SPECIAL SUN MIXTURE 2.00 ACRE $4,356 00 $8,712.00
DIV 11 IRRIGATION PROPOSAL 1.00 LS $103,307.50 $103,307.50
DIV 12 IRRIGATION PROPOSAL 1.00 LS $97,932.50 $97,932.50
BIOSWALE COMPOST AND PREP 1.00 LS $111,297.30 $111,297.30
$0.00
$0.00
Total Cost: $998,733.15
150, Bond Amount: $1,498,099. 73 !
Kind Regards,
Tutko Landscaping and Nursery
Jason Tutko
Page 147 of 221
City of Port Orchard
216 Prospect Street, Port Orchard, WA 98366
(360) 876-4407 • FAX (360) 895-9029
Agenda Staff Report
Agenda Item No.: Business Item 7J Meeting Date:
February 22, 2022
Subject: Approval of Amendment No. 6 to Prepared by: Mark Dorsey, P.E.
Contract No. 054-18 with RH2 Public Works Director
Engineering, Inc. for the Marina Pump Atty Routing No.: 366922-0014 – Sewer
Station Rebuild Project Atty Review Date: February 18, 2022
Summary: On December 15, December 22, and December 29, 2017, the City’s Public Works
Department published a Request for Qualifications for the 30%, 60% and 100% Ad Ready Design for the
Marina Pump Station Rebuild Project. After a successful and complete procurement process, the City
selected RH2 Engineering, Inc. as the most qualified consultant for the Project. On July 18, 2018, the
Port Orchard City Council approved Contract No. C054-18 with RH2 Engineering, Inc. for the Marina
Pump Station Rebuild Project – 30% Design. A summary of subsequent Amendments are as follows;
Amendment #1 Time Only Extension
Amendment #2 Time Only Extension
Amendment #2A Time Only Extension
Amendment #3 30% to 80% Design $726,789 Additional Fee
Amendment #4 Additional Geotech $14,004 Additional Fee
Amendment #5 Time Only Extension
Further amendment of the Contract is now required to move the Project through to the next phase.
Therefore, Amendment No. 6 in the amount of an additional $679,025 will move the Project through
100% Ad Ready Design and Bid Support, for a Total Contract Amount of $1,669,918. Please note that
in an attempt to help manage the Total Project Cost (now estimated at approximately $15M), RH2
Engineering, Inc. has removed and/or reduced industry standard Fees & Markups and maintained their
2021 Rates for a total reduction of $96,975 (see Fee Adjustments attached.) Additionally, the overall
Project Design, Permitting and Bid Support Phase cost of $1,669,918 is 11% of the estimated Total
Project Cost of $15M, which is also well within industry standard.
Future Amendment #7 with RH2 Engineering, Inc. will provide for Construction Engineering
Support/Engineer of Record Services. The Construction Administration/Construction Management
Services provider have not yet been determined, but these associated costs are included within the
estimated $15M Total Project Cost.
Recommendation: Staff recommends authorizing the Mayor to execute Amendment #6 to Contract
No. C054-18 with RH2 Engineering, Inc. for the Marina Pump Station Rebuild Project (100% Ad Ready
Design & Bid Support) in an amount not to exceed an additional $679,020, thereby bringing the Total
Contract Amount to $1,669,918.
Page 148 of 221
Staff Report 7J
Page 2 of 2
Relationship to Comprehensive Plan: Chapter 7 – Utilities (Sewer).
Motion for Consideration: I move to authorize the Mayor to execute Amendment #6 to Contract No.
C054-18 with RH2 Engineering, Inc. for the Marina Pump Station Rebuild Project in the amount of
$679,020, thereby bringing the Total Contract Amount to $1,669,918.
Fiscal Impact: The City of Port Orchard was awarded a $13M loan from the Department of Ecology’s
2019 Water Quality Combined Financial Assistance Program. Additionally, the City will utilize the
recently awarded $2.8M ARPA Grant funding to complete the Project. A Budget Amendment may be
required.
Alternatives: Do not approve.
Attachments: Contract Amendment #6 w/ RH2 Proposal (dated 2/8/2022)
Fee Adjustment Table
Authorization for Amendment No. 6
Page 149 of 221
CITY OF PORT ORCHARD
Authorization for Amendment No. 6
Project -Design & Permit
th
Contract History
Amount Sales Tax Total Date Appvd by
Original Contract
Total Contract $1,669,918.00 $0.00 $1,669,918.00
I have reviewed the Change Order information above and certify that to the best of my knowledge descriptions and
costs are true and accurate.
Approved:
Mayor
Attest:
City Clerk
Council Approval Date
Final 100% Design/Ad Ready plus Bid Support added
to the previously approved 80% Design.
Change Orders that do not exceed 10%, with a maximum of
$50,000, of either legally authorized budget limit or contract
amount established by City Council can be approved by the Public
Works Director.
Change Orders that do not exceed 10%, with a maximum of
$100,000, of either legally authorized budget limit or contract
amount established by City Council are to be approved by the
Mayor.
Change Orders over $100,000 or exceed a total of 10% require
Council Action.
Page 150 of 221
02/08/22 10:46 AM J:\Data\PO\118-116\Contract\Amend No. 6\Amend_No. 6_AGMT_Phase 3_Marina PS Final Design.docx
City of Port Orchard
Contract Amendment No. 6
Marina Pump Station Rebuild
Phase 3 – Final Design and Services During Bidding
RH2 Project No. PO 118.116
In accordance with our Professional Services Agreement for the Marina Pump Station Rebuild, dated
July 24, 2018, this is an authorization to revise the project Scope of Work as described below. The work
will be performed and invoiced using the terms and conditions listed in the original agreement, plus
previous amendments.
Modify the following items from the Scope of Work:
Reference the attached Exhibit A, Exhibit B, and Exhibit C.
The engineering fee authorization will increase by $679,025 for a total authorization amount of
$1,669,818.
Please sign this authorization in the space provided below and return to RH2 Engineering, Inc., by mail
at the address below, or by email to Contracts@RH2.com.
RH2 Engineering, Inc.
City of Port Orchard
Signature Signature
Print Name/Title Print Name/Title
Date Date
RH2 Engineering, Inc. 22722 29th Drive SE, Suite 210, Bothell, WA
98021
City of Port Orchard, 216 Prospect Street, Port Orchard, WA
98366
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EXHIBIT A
Scope of Work
Amendment No. 6
City of Port Orchard
Marina Pump Station Rebuild
Phase 3 – Final Design and Services During Bidding
February 2022
Background
The City of Port Orchard (City) has retained RH2 Engineering, Inc., (RH2) to design the retrofit of its
aging Marina Pump Station. The existing sewer pump station was built in 1983 and is located near
the intersection of State Route (SR) 166 and Orchard Avenue. The station is identified in the City’s
2016 General Sewer Plan as needing additional capacity by build-out, at which time flows will be up
to 8,435 gallons per minute (gpm), to accommodate the City’s future growth. Currently, the Marina
Pump Station pumps all the City’s wastewater to West Sound Utility District’s combined Wastewater
Treatment Facility.
The South Kitsap Community and Event Center (SKCEC) will be constructed between Orchard Avenue
and Port Street at the site of the existing Kitsap Bank Corporate Headquarters (KBHQ), and the new
KBHQ will be built between Orchard Avenue and Frederick Avenue, southeast of the existing pump
station. Design of the new pump station building requires coordination with the architects Rice
Fergus Miller (RFM), who are designing the SKCEC and GGLO for the new KBHQ. The Marina Pump
Station has been redesigned twice during the course of this project because of differing finished floor
and plaza levels set by the various developments near the pump station. In October of 2021,
consensus was reached on a plaza and floor elevation for the pump station, SKCEC , and KBHQ to
accommodate forecasted sea level rise. The site design and all grade transitions were redesigned,
and it was determined that the walls of the existing below-grade structure must be extended by
4 feet to bring the finished floor above the forecasted flood level. This building extension increases
the scope of the project and requires the design and installation of a temporary bracing network
when the existing roof is removed from the below-grade structure. The changing elevations for the
site have increased the cost and complexity of the building and site design.
Another addition to the scope is the physical modeling to evaluate hydrodynamics of the existing
wet well that will be reused. Structural engineers have stated that the existing fille ts in the lower
corners of the existing wet well cannot be removed, as was originally envisioned. Preformed basins
that control intake hydraulics are not possible because they would require the removal of reinforced
concrete. Hydraulic Institute Standards require that pump stations moving water at the projected
rates in the Marina Pump Station must have a physical hydrodynamic model constructed to learn
where vortices may form. Locations of baffles and flow diverters can be iteratively tested on the
scaled model and then applied to the design of the upgraded wet well to prevent the formation of
vortices. Pump performance will be significantly degraded if the pumps vibrate because of
submerged and surface vortices. Pump impellers can become pitted and damaged by the vortices.
Page 152 of 221
City of Port Orchard Amendment No. 6
Marina Pump Station Rebuild Exhibit A
Phase 3 – Final Design and Services During Bidding Scope of Work
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Vibration can prematurely age the pump bearings and shafts may limit the maximum flow output.
The risk of vortices is high at the Marina Pump Station because of the large flow rates the pump
station must discharge to meet projected peak hour flows. It is important that this modeling be
completed, and it is a major component of this amendment.
This Scope of Work includes the following tasks to carry the project through bidding.
• PHASE 3 – FINAL DESIGN AND SERVICES DURING BIDDING
o Task 1 – Project Management Services
o Task 2 – Plan Updates to Accommodate Existing and Future Site Improvements
o Task 3 – Additional Data Acquisition
o Task 4 – Fluid Dynamics Physical Model Study
o Task 5 – 90-Percent Plans, Specifications, and Cost Estimate
o Task 6 – Bid-Ready Design Plans, Specifications, and Cost Estimate
o Task 7 – Services During Bidding and Award
o Task 8 – Supplemental Services
Task 1 – Project Management Services
Objective: Organize, manage, and coordinate disciplines to complete the Scope of Work on schedule
and in close coordination with City staff.
Approach:
Prepare meeting agendas for meetings with City staff described in this Scope of Work and
maintain ongoing communication.
Prepare meeting minutes for meetings with City staff described in this Scope of Work .
Prepare monthly invoices, progress reports, and schedule updates.
Maintain RH2’s project records and files.
Prepare quarterly payment request and progress report (PRPR) submittals and submit to the
City for submission through Ecology’s website.
Assumptions:
• All PRPR submissions are to be made by the City directly through Ecology’s website.
To Be Provided by City:
• Timely review of quarterly progress reports prior to submission.
RH2 Deliverables:
• Meeting agendas for meetings listed in this Scope of Work in electronic PDF.
• Meeting minutes for meetings listed in this Scope of Work in electronic PDF.
Page 153 of 221
City of Port Orchard Amendment No. 6
Marina Pump Station Rebuild Exhibit A
Phase 3 – Final Design and Services During Bidding Scope of Work
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• Monthly invoices with attached schedule adjustments, accomplishments, and future work
outline in electronic PDF.
• Quarterly progress reports in electronic PDF.
Task 2 – Plan Updates to Accommodate Existing and Future Site Improvements
Objective: Incorporate existing and future site improvements into the design plans, specifications,
and estimate of probable construction cost for the sewer pump station improvements based on
decisions made during design of the project.
Approach:
Coordinate with the City and RFM to assess the planned future site improvements for the plaza
that will surround the Marina Pump Station. Update the proposed site and structural design
plans to accommodate the existing site and planned future site configurations.
Investigate and review available forecasted sea level rise data. Provide guidance to the City for
selecting a planning-level building finished floor elevation that accommodates for forecasted
sea level rise. Update the proposed site and structural design plans to incorporate the City’s
selected building finished floor elevation.
Coordinate with AES Consultants, Inc., (AES) as a subconsultant to RH2 to determine the vertical
shift needed to convert from the vertical datum used in the design plans for the Marina Pump
Station to match the vertical datum used for the SKCEC design plans (vertical datum NAVD 88).
Coordinate with AES to update the elevations in the existing site plan based on this vertical
datum conversion.
Update the elevations in the proposed site, structural, and mechanical design plans based on
the vertical datum conversion identified in subtask 2.3.
Prepare structural bracing plans for roof removal and replacement due to sea level rise.
Prepare wall extension and proposed roof plan due to sea level rise.
Assumptions:
• RH2 will rely on the accuracy and completeness of previously prepared sea level rise forecasts.
Previously Provided by City:
• Advisement on Impacts of Sea Level Rise on City of Port Orchard Shoreline, prepared by
Herrera Environmental Consultants, Inc., and Cascadia Consulting Group.
• Selection of pump station building finished floor elevation that accommodates for forecasted
sea level rise to be incorporated into the design plans.
Page 154 of 221
City of Port Orchard Amendment No. 6
Marina Pump Station Rebuild Exhibit A
Phase 3 – Final Design and Services During Bidding Scope of Work
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RH2 Deliverables:
• One (1) electronic PDF of design plans that accommodates for the existing site and planned
future site configurations, integrates the selected building finished floor elevation, and
incorporates the vertical datum shift.
Task 3 – Additional Data Acquisition
Objective: Acquire additional existing utility information. Coordinate with a subconsultant for utility
potholing.
Approach:
Prepare easements or right-of-entry agreements for potholing.
Prepare a traffic control plan for potholing.
Coordinate with AES as a subconsultant to RH2 and City staff for a maximum of two (2) utility
potholes.
Incorporate potholing data into proposed site plan and valve vault plans.
Assumptions:
• AES is responsible for site safety and directing the operator’s work.
To Be Provided by City:
• Coordination and assistance with utility potholing in right-of-way.
• City will provide asphalt restoration for potholes.
RH2 Deliverables:
• AES will provide potholing data in AutoCAD file format to RH2 via email.
• One (1) electronic copy of the AutoCAD potholing files (AutoCAD and PDF formats).
Task 4 – Fluid Dynamics Physical Model Study
Objective: Obtain scaled physical model study to evaluate fluid dynamics and if modifications are
needed to address potential pump performance issues.
Approach:
Coordinate with Northwest Hydraulic Consultants, Inc., (NHC) as a subconsultant to RH2 to
conduct scaled physical modeling of the pump intakes and suction piping to evaluate potential
pump performance issues.
Prepare a technical memorandum summarizing the results of the scaled physical modeling
evaluations. Recommended modifications outlined in this technical memorandum will be
considered for incorporation into the 90-percent design plans prepared in Task 5.
Page 155 of 221
City of Port Orchard Amendment No. 6
Marina Pump Station Rebuild Exhibit A
Phase 3 – Final Design and Services During Bidding Scope of Work
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Assumptions:
• The Marina Pump Station as-builts accurately depict the existing wet well configuration.
Previously Provided by City:
• As-builts of the City’s Marina Pump Station.
RH2 Deliverables:
• One (1) electronic PDF of the technical memorandum summarizing the scaled physical
modeling evaluations.
Task 5 – 90-Percent Plans, Specifications, and Cost Estimate
Objective: Develop 90-percent design plans, specifications, and estimate of probable construction
cost for the sewer pump station improvements based on the decisions made during previous design
phases.
Approach:
5.1 Prepare 90-percent cover and general notes sheets.
5.2 Prepare 90-percent site plans, traffic control plans, and details.
5.3 Coordinate with RFM as a subconsultant to RH2 to prepare 90-percent architectural design
plans and details for the pump station building that are consistent with the ambience of the
SKCEC and new KBHQ.
5.4 Coordinate with Anchor QEA, LLC as a subconsultant to RH2 to prepare 90-percent
landscaping design plans and details that are consistent with the ambience of the SKCEC and
new KBHQ.
5.5 Prepare 90-percent structural plans and calculations.
a) Develop plans for shoring of the emergency storage structure and valve vault
construction.
b) Develop plans for temporary reinforcement during construction of the dry well and wet
well walls to accommodate the selected finished floor elevation.
c) Develop plans for extending the dry well and wet well walls and ceiling to accommodate
the selected finished floor elevation.
5.6 Prepare 90-percent mechanical plans.
a) Evaluate the recommended pump intake modifications outlined in the physical model
technical memorandum (subtask 4.2) for incorporation into the design plans.
5.7 Prepare 90-percent electrical and telemetry plans.
Page 156 of 221
City of Port Orchard Amendment No. 6
Marina Pump Station Rebuild Exhibit A
Phase 3 – Final Design and Services During Bidding Scope of Work
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5.8 Prepare 90-percent technical specifications. Technical specifications will be in RH2’s modified
Construction Specifications Institute (CSI) format. Prepare 90-percent front-end and
construction contract documents.
5.9 Prepare 90-percent estimate of probable construction cost. Submit plans, specifications, and
estimate to City for review.
5.10 Attend one (1) meeting with City staff to review 90-percent plans, specifications, and
probable construction cost estimate.
5.11 Perform in-house quality assurance and quality control (QA/QC) review and incorporate
comments from the 90-percent review meetings into the design plans and specifications.
5.12 Attend one (1) site visit to confirm site conditions for proposed improvements.
To Be Provided by City:
• Timely review and comments on 90-percent design plans, specifications, and probable
construction cost estimate.
• Meeting attendance at 90-percent design completion.
RH2 Deliverables:
• One (1) electronic PDF and three (3) half-size sets of 90-percent design plans.
• One (1) electronic PDF and one (1) hard copy of technical and legal specifications at
90-percent review.
• 90-percent estimate of probable construction cost in electronic PDF to be emailed to the City.
Task 6 – Bid-Ready Design Plans, Specifications, and Cost Estimate
Objective: Develop bid-ready design plans, specifications, and estimate of probable construction
cost for the sewer pump station improvements based on the decisions made during previous design
phases.
Approach:
6.1 Prepare bid-ready cover and general notes sheets.
6.2 Prepare bid-ready site plans, traffic control plans, and details.
6.3 Prepare bid-ready architectural plans and details.
6.4 Prepare bid-ready landscaping plans and details.
6.5 Prepare bid-ready structural plans and calculations.
6.6 Prepare bid-ready mechanical plans.
6.7 Prepare bid-ready electrical and telemetry plans.
Page 157 of 221
City of Port Orchard Amendment No. 6
Marina Pump Station Rebuild Exhibit A
Phase 3 – Final Design and Services During Bidding Scope of Work
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6.8 Prepare bid-ready technical specifications. Prepare bid-ready front-end and construction
contract documents.
6.9 Prepare final estimate of probable construction cost.
6.10 Perform in-house QA/QC review and incorporate comments from the bid-ready review into
the design plans and specifications. Submit bid-ready plans, specifications, and probable
construction cost estimate to City for bidding.
To Be Provided by City:
• Review and comments on bid-ready design plans, construction cost estimate, and
specifications.
RH2 Deliverables:
• One (1) electronic PDF and three (3) half-size sets of bid-ready design plans.
• One (1) electronic PDF and one (1) hard copy of bid-ready technical and legal specifications.
• Final estimate of probable construction cost in electronic PDF to be emailed to the City.
Task 7 – Services During Bidding and Award
Objective: Provide engineering services during the bidding phase of the project.
Approach:
Prepare a bid advertisement and coordinate the timing and placement with the City. The City
will submit the advertisement to the appropriate publications.
Produce electronic and hard copy sets of the plans and specifications for City and RH2 use
during bidding. The City will produce additional bid document sets as needed for bidding the
project.
Respond to questions from bidders, and revise construction plans, technical specifications, or
construction contract conditions during the bidding process, if requested. Prepare up to two (2)
addenda, if needed.
Assist the City with the evaluation of the qualifications and references for the apparent low
bidder. Prepare a recommendation of bid award letter. It is assumed that the City will handle
bid award and construction contract execution.
To Be Provided by City:
• Management of and payment for the Builders Exchange of Washington online bidding
process.
• Distribution of bid documents and maintenance of the plan holder’s list, if applicable.
• Issuance of addenda, if any, to all construction contract document holders.
• Bid opening attendance and tabulation of bids received.
Page 158 of 221
City of Port Orchard Amendment No. 6
Marina Pump Station Rebuild Exhibit A
Phase 3 – Final Design and Services During Bidding Scope of Work
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• Bid award and construction contract execution.
RH2 Deliverables:
• Bid plan and specifications sets: one (1) electronic set (PDF) and four (4) half-size sets; one
(1) set for City use and bidding purposes; and three (3) sets for RH2’s file and staff use during
bidding.
• Phone assistance to vendors and bidders during the bidding phase.
• Two (2) addenda in electronic PDF, if needed.
• Reference check of lowest bidder.
• Recommendation of bid award letter in electronic PDF.
Page 159 of 221
EXHIBIT B - Preliminary
Fee Estimate
Amendment No. 6
City of Port Orchard
Marina Pump Station Rebuild
Phase 3 - Final Design and Services During Bidding
Feb-22
Description Total
Hours Total Labor Total Subconsultant Total Expense Total Cost
Task 1 Project Management Services 60 11,490$ 11,063$ 50$ 22,602$
1.1 Prepare meeting agendas and maintain communication 6 1,254$ -$ 50$ 1,304$
1.2 Prepare meeting minutes 6 1,254$ -$ -$ 1,254$
1.3 Prepare monthly invoices and schedule updates 18 2,970$ -$ -$ 2,970$
1.4 Maintain project records and files 6 1,254$ 11,063$ -$ 12,317$
1.5 Prepare quarterly reports for Ecology 24 4,758$ -$ -$ 4,758$
Task 2 Plan Updates to Accommodate Existing and Future Site Improvements 162 31,716$ 2,100$ -$ 33,816$
2.1 Coordinate with City and RFM and update site and structural design 4 664$ 2,100$ -$ 2,764$
2.2 Investigate available forecasted sea level rise data 36 7,596$ -$ -$ 7,596$
2.3 Coordinate with AES to determine vertical shift needed 10 1,840$ -$ -$ 1,840$
2.4 Update elevations in proposed site, structural, and mechanical plans 16 2,656$ -$ -$ 2,656$
2.5 Prepare structural bracing plans for roof removal due to sea level rise 60 11,976$ -$ -$ 11,976$
2.6 Prepare wall extension and proposed roof plan due to sea level rise 36 6,984$ -$ -$ 6,984$
Task 3 Additional Data Acquisition 35 6,461$ 10,500$ -$ 16,961$
3.1 Prepare easements or right-of-entry agreements for potholing 11 2,000$ -$ -$ 2,000$
3.2 Prepare traffic control plan 7 1,336$ -$ -$ 1,336$
3.3 Coordinate with AES to perform utility potholing 7 1,336$ 10,500$ -$ 11,836$
3.4 Incorporate potholing data into site and valve vault plans 10 1,789$ -$ -$ 1,789$
Task 4 Fluid Dynamics Physical Model Study 8 1,844$ 101,745$ -$ 103,589$
4.1 Coordinate with NHC to perform scaled physical modeling 8 1,844$ 87,990$ -$ 89,834$
4.2 Prepare technical memorandum summarizing physical modeling --$ 13,755$ -$ 13,755$
Task 5 90-Percent Plans, Specifications, and Cost Estimate 959 182,886$ 102,558$ 1,465$ 286,908$
5.1 Prepare 90-percent cover and general notes sheets 12 2,250$ -$ -$ 2,250$
5.2 Prepare 90-percent site plans, traffic control plans, and details 30 6,140$ 8,400$ -$ 14,540$
5.3 Coordinate with RFM to prepare architectural plans 34 6,484$ 8,400$ -$ 14,884$
5.4 Coordinate with QEA to prepare landscaping design 24 3,984$ 59,508$ -$ 63,492$
5.5 Prepare 90-percent structural plans and calculations 249 47,922$ 6,300$ -$ 54,222$
5.6 Prepare 90-percent mechanical plans 178 33,110$ -$ -$ 33,110$
5.7 Prepare 90-percent electrical and telemetry plans 114 19,772$ -$ -$ 19,772$
5.8 Prepare 90-percent front-end and technical specifications 106 21,270$ 7,350$ -$ 28,620$
5.9 Prepare 90-percent estimate of probable construction cost 92 18,918$ 7,350$ -$ 26,268$
5.10 Attend 90-percent review meeting with City staff 12 2,508$ 2,100$ -$ 4,608$
5.11 Perform in-house QA/QC review and incorporate comments 84 15,512$ 3,150$ 1,368$ 20,030$
5.12 Attend site visit to confirm site conditions for proposed improvements 24 5,016$ -$ 97$ 5,113$
Task 6 Bid-Ready Design Plans, Specifications, and Cost Estimate 531 102,653$ 90,997$ 2,568$ 196,218$
6.1 Prepare bid-ready cover and general notes sheets 6 1,125$ -$ -$ 1,125$
6.2 Prepare bid-ready site plans, traffic control plans, and details 33 6,632$ 8,400$ -$ 15,032$
6.3 Prepare bid-ready architectural plans and details 9 1,578$ 6,300$ -$ 7,878$
6.4 Prepare bid-ready landscaping plans and details 9 1,578$ 55,297$ -$ 56,875$
6.5 Prepare bid-ready structural plans and calculations 101 21,890$ 6,300$ -$ 28,190$
6.6 Prepare bid-ready mechanical plans 111 21,460$ -$ -$ 21,460$
6.7 Prepare bid-ready electrical and telemetry plans 71 12,690$ -$ -$ 12,690$
6.8 Prepare bid-ready front-end and technical specifications 68 13,092$ 6,300$ -$ 19,392$
6.9 Prepare final estimate of probable construction cost 36 6,744$ 6,300$ -$ 13,044$
6.10 Perform in-house QA/QC review and incorporate comments 87 15,864$ 2,100$ 2,568$ 20,532$
Task 7 Services During Bidding and Award 90 16,898$ -$ 2,033$ 18,931$
7.1 Prepare bid advertisement 8 1,494$ -$ 625$ 2,119$
7.2 Produce electronic and hard copy bid documents 32 5,736$ -$ 1,385$ 7,121$
7.3 Respond to questions from bidders and prepare addenda 42 8,128$ -$ -$ 8,128$
7.4 Assist the City and prepare recommendation of award letter 8 1,540$ -$ 23$ 1,563$
PROJECT TOTAL 1845 353,948$ 318,963$ 6,115$ 679,025$
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Page 160 of 221
RATE LIST RATE UNIT
Professional I $151 $/hr
Professional II $166 $/hr
Professional III $182 $/hr
Professional IV $196 $/hr
Professional V $211 $/hr
Professional VI $224 $/hr
Professional VII $240 $/hr
Professional VIII $250 $/hr
Professional IX $250 $/hr
Control Specialist I $137 $/hr
Control Specialist II $149 $/hr
Control Specialist III $164 $/hr
Control Specialist IV $178 $/hr
Control Specialist V $189 $/hr
Control Specialist VI $203 $/hr
Control Specialist VII $218 $/hr
Control Specialist VIII $227 $/hr
Technician I $115 $/hr
Technician II $125 $/hr
Technician III $142 $/hr
Technician IV $153 $/hr
Technician V $167 $/hr
Technician VI $183 $/hr
Technician VII $198 $/hr
Technician VIII $209 $/hr
Administrative I $75 $/hr
Administrative II $88 $/hr
Administrative III $106 $/hr
Administrative IV $125 $/hr
Administrative V $143 $/hr
CAD Plots - Half Size $2.50 price per plot
CAD Plots - Full Size $10.00 price per plot
CAD Plots - Large $25.00 price per plot
Copies (bw) 8.5" X 11"$0.09 price per copy
Copies (bw) 8.5" X 14"$0.14 price per copy
Copies (bw) 11" X 17"$0.20 price per copy
Copies (color) 8.5" X 11"$0.90 price per copy
Copies (color) 8.5" X 14"$1.20 price per copy
Copies (color) 11" X 17"$2.00 price per copy
Mileage $0.585
EXHIBIT C
RH2 ENGINEERING, INC.
2021 SCHEDULE OF RATES AND CHARGES
Rates listed are adjusted annually. Page 161 of 221
City of Port Orchard
Marina Pump Station Improvements
Proposed Engineering Fee Adjustments
Updated: 2/7/2022
PROPOSED FEE
Sub Markup Reduced from 15% to 5%30,377$
2.5% Technology Fee Removed 9,608$
AutoCAD Fee Removed 24,503$
2021 Rates 16,487$
Fee Review 16,000$
TOTAL FEE REDUCTION 96,975$
Original Estimate $776,000
Total RH2 Fee Reduction*(96,975)$
Updated* Fee Breakdown $679,025
Original Fee Breakdown
Total 759,655$ (Including Fee Review Reduction)
RH2 Fees 410,315$
Sub Fees 349,340$
Updated Fee Breakdown Delta Percent Reduction
Total 679,025$
RH2 Fees 313,340$ (96,975)$ -24%
Sub Fees 349,340$ -$ 0%
\\corp.rh2.com\dfs\Projects\Data\PO\118-116\Contract\Amend No. 6\Misc Supporting Docs\PO-cost-adjustment.xlsxPage 162 of 221
City of Port Orchard
216 Prospect Street, Port Orchard, WA 98366
(360) 876-4407 • FAX (360) 895-9029
Agenda Staff Report
Summary: The Port Orchard Police Department has experienced a shortage of qualified peace
officer candidates and desires to have more options available in its efforts to recruit and hire
lateral peace officers. The Department does not currently offer any hiring incentives for eligible
candidates. This leaves the Department as an outlier in Kitsap County as other agencies offer
monetary incentives, and is directly affecting the ability to recruit. Lateral officers can be hired
and operating independently in roughly four months, which is less than half the time required for
a newly hired officer. To remain competitive, the Department desires to establish a hiring
incentive program consistent with its peers and the current job market.
A Memorandum of Understanding (MOU) has been prepared between the City and the Police
Guild representing Patrol Officers to address a monetary incentive and initial leave balances for
Lateral Police Officer candidates possessing a valid Washington State Peace Officer Certification.
Recommendation: Staff recommends the Council authorize the Mayor to sign an MOU with the
Police Guild representing Patrol Officers approving a hiring incentive program for qualified lateral
peace officer candidates in substantially the form of the MOU sent to you under privilege from
the City Attorney.
Relationship to Comprehensive Plan: N/A
Motion for consideration: I move to authorize the mayor to sign a Memorandum of
Understanding with the Police Guild representing Patrol Officers pertaining a hiring incentive
program for qualified lateral peace officer candidates.
Fiscal Impact: This program is not budgeted, a future Budget Amendment may be required.
Alternatives: Not authorize the Resolution and provide further guidance.
Attachments: The MOU under consideration tonight is not a public document until approved by
Council and signed by the parties; it is, therefore, not attached.
Page 163 of 221
City of Port Orchard
216 Prospect Street, Port Orchard, WA 98366
(360) 876-4407 • FAX (360) 895-9029
Agenda Staff Report
Summary: Consistent with Substitute House Bill 1406 (Chapter 338, Laws of 2019) (“SHB 1406”), the City
Council authorized the City to utilize a portion of the State’s existing sales tax for affordable or supportive
housing efforts. In 2020, the City evaluated proposals to utilize these funds in an effective and efficient
manner, and the selected partner, Kitsap Community Resources-Housing Solutions Center, was unable to
utilize all the allocated funds within the extended contract term. That agreement, as amended, expired
December 31, 2021.
Since that time, the City has worked to identify other partners to utilize these funds to the benefit of the Port
Orchard community.
Staff identified Kitsap Homes of Compassion as a qualified non-profit organization with an established
program to provide affordable and supportive housing to low-income (less than 60% of the median income
level) residents of Port Orchard. Kitsap Homes of Compassion seeks funding as follows: $1,000 per month to
support the operations and maintenance costs of new units of supportive housing in three (3) new facilities
within the City; and $600 per month as rental assistance for one eligible tenant in a supportive housing
facility located within the City. Staff negotiated an agreement with Kitsap Homes of Compassion for the City’s
participation in the program to provide affordable, supportive housing units.
Recommendation: Staff recommends Council authorize the Mayor to execute an agreement with Kitsap
Homes of Compassion for the use of SHB 1406 funding for affordable housing.
Relationship to Comprehensive Plan: N/A
Motion for consideration: “I move to authorize the Mayor to execute an agreement with Kitsap Homes of
Compassion for the use of SHB 1406 funding in the amount of $43,200 for affordable housing.”
Fiscal Impact: Revenue from the Affordable and Supporting Housing Sales Tax will be used to fund the grant.
Alternatives: Do not authorize an extension and provide alternative guidance.
Attachments: Agreement with Kitsap Homes of Compassion
Page 164 of 221
AFFORDABLE HOUSING SERVICES AGREEMENT Page 1 of 10
AFFORDABLE HOUSING SERVICES AGREEMENT
This Affordable Housing Services Agreement (“Agreement”) is entered into by and between
Kitsap Homes of Compassion, a Washington non-profit corporation, and the City of Port Orchard,
a Washington State municipal corporation (hereinafter the “City” and collectively the “Parties”).
I. RECITALS
A. Kitsap Homes of Compassion is a Washington non-profit corporation with its headquarters at
7721 Beacon Place NE #101, in the City of Bremerton, and is organized and existing under
the laws of the State of Washington; and
B. The City of Port Orchard is a Washington municipal corporation organized and existing under
the Washington State Constitution and the laws of the State of Washington, and particularly
those set forth at RCW Title 35A; and
C. In the 2019 legislative session, the Washington state legislature passed SHB 1406 (codified at
RCW 82.14.540), which created a sales tax revenue sharing program that allows the City to
access a portion of state sales tax revenue (hereinafter, the “Funds”) to make local investments
in affordable housing over a 20-year term; and
D. The City is committed to utilizing this funding source to assist the citizens of Port Orchard by
investing in programs that commit to providing housing assistance for those below the 60%
median income level; and
E. Kitsap Homes of Compassion operates a program to provide safe, affordable, supportive
housing for those who are unhoused or struggling with housing insecurity in Kitsap County
(the “Program”); and
F. Kitsap Homes for Compassion seeks a partnership with the City for funding for affordable,
supportive housing for this population as follows: $1,000 per month to support the operations
and maintenance costs of new units of supportive housing in three (3) new facilities within the
City; and $600 per month as rental assistance for one eligible tenant in a supportive housing
facility located within the City; and
G. The City desires to engage Kitsap Homes of Compassion to perform the public services
described herein and undertake the use of the City’s Funds for the affordable housing purposes;
NOW, THEREFORE, in consideration of the foregoing, and in consideration of the premises,
terms and conditions set forth below, it is hereby agreed as follows:
II. AGREEMENT
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AFFORDABLE HOUSING SERVICES AGREEMENT Page 2 of 10
1. Affordable Housing Services. The City desires to engage with Kitsap Homes of Compassion
by utilizing Funds allocated to the City pursuant to SHB 1406 to assist low-income individuals
and households in the South Kitsap area with affordable transitional and permanent housing.
Consistent with this goal, the parties agree to the following performance obligations:
A. City’s Duties. The City shall provide to Kitsap Homes of Compassion the Funds
in an amount up to $43,200 for the term of this Agreement ($36,000 for operations
and maintenance of three (3) supportive housing facilities in Port Orchard, and
$7,200 for rental assistance for one unit of supportive housing in Port Orchard),
contingent on the terms and conditions herein. The City shall have no additional
payment obligations to Kitsap Homes of Compassion beyond this allocation, and
all funding is conditioned on Council appropriation.
i. Upon receipt of an complete invoice in a form acceptable to the City, the
City shall issue payment within thirty (30) days of receipt.
B. Kitsap Homes of Compassion Duties. Kitsap Homes of Compassion shall utilize
the Funds for the Program, as set out on Exhibit A hereto. In utilizing the Funds
and administering the Program, Kitsap Homes of Compassion shall comply with
all applicable state and local laws and shall exclusively utilize the Funds to provide
for affordable or supportive housing to benefit to those South Kitsap residents with
an 0-60% of the Area Median Income (AMI). Complete parameters for the
Program are attached hereto as Exhibit A.
i. Invoices shall be submitted monthly to the City, evidencing and
documenting that the requested payment was used for the public services
described herein and authorized by the City Council. Such documentation
shall evidence that the beneficiaries of the funding are Port Orchard
residents with a 0-60% of the Area Median Income (AMI), and that the
funding is used for operations and maintenance costs of new units of
affordable or supportive housing, or to provide rental assistance to tenants.
ii. Kitsap Homes of Compassion shall keep cost records and accounts
pertaining to this Agreement available for inspection by City
representatives for three (3) years after final payment.
2. Duration. This Agreement will commence upon mutual execution of this Agreement and will
expire one year from mutual execution, unless earlier terminated in accordance with the terms
of this Agreement.
3. Termination. The City may terminate this Agreement with or without cause upon thirty (30)
days’ advance written notice to Kitsap Homes of Compassion. In the event of termination,
the City have no obligation to provide any Funds to Kitsap Homes of Compassion. Upon
termination or expiration of the Agreement, all unused Funds shall be returned to the City.
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AFFORDABLE HOUSING SERVICES AGREEMENT Page 3 of 10
4. Insurance.
A. Kitsap Homes of Compassion shall procure and maintain for the duration of the
Agreement, insurance against claims for injuries to persons or damage to property
which may arise from or in connection with the performance of the work hereunder
by Kitsap Homes of Compassion, its agents, representatives, or employees.
B. No Limitation. Kitsap Homes of Compassion’s maintenance of insurance as
required by the agreement shall not be construed to limit the liability of Kitsap
Homes of Compassion to the coverage provided by such insurance, or otherwise
limit the City’s recourse to any remedy available at law or in equity.
C. Minimum Scope of Insurance. Kitsap Homes of Compassion shall obtain insurance
of the types described below:
1. Commercial General Liability insurance shall be written on ISO occurrence
form CG 00 01, or a substitute form providing equivalent liability coverage
and shall cover liability arising from premises, operations, independent
contractors and personal injury and advertising injury. The City shall be
named by endorsement as an additional insured under the Kitsap Homes of
Compassion’s Commercial General Liability insurance policy with respect
to the work performed for the City.
2. Workers’ Compensation coverage as required by the Industrial Insurance
laws of the State of Washington.
D. Minimum Amounts of Insurance. Kitsap Homes of Compassion shall maintain the
following insurance limits:
1. Commercial General Liability insurance shall be written with limits no less
than $1,000,000 each occurrence, $2,000,000 general aggregate.
2. Employer’s Liability each accident $1,000,000, Employer’s Liability
Disease each employee $1,000,000, and Employer’s Liability Disease –
Policy Limit $1,000,000.
E. Other Insurance Provisions. The insurance policies are to contain, or be endorsed
to contain, the following provisions for Automobile Liability and Commercial
General Liability insurance:
1. Kitsap Homes of Compassion’s insurance coverage shall be primary
insurance as respect the City. Any insurance, self-insurance, or insurance
pool coverage maintained by the City shall be excess of Kitsap Homes of
Compassion’s insurance and shall not contribute with it.
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AFFORDABLE HOUSING SERVICES AGREEMENT Page 4 of 10
2. The City will not waive its right to subrogation against Kitsap Homes of
Compassion. Kitsap Homes of Compassion’s insurance shall be endorsed
acknowledging that the City will not waive their right to subrogation.
Kitsap Homes of Compassion’s insurance shall be endorse to waive the
right of subrogation against the City, or any self-insurance, or insurance
pool coverage maintained by the City.
3. Kitsap Homes of Compassion’s insurance shall be endorsed to state that
coverage shall not be cancelled by either party, except after thirty (30) days
prior written notice by certified mail, return receipt requested, has been
given to the City. If the General Liability coverage is written on a “claims
made” basis, then a minimum of a three (3) year extended reporting period
shall be included with the claims made policy, and proof of this extended
reporting period provided to the City.
F. Acceptability of Insurers. Insurance is to be placed with insurers with a current
A.M. Best rating of not less than A:VII.
G. Verification of Coverage. Kitsap Homes of Compassion shall furnish the City with
original certificates and a copy of the amendatory endorsements, including but not
necessarily limited to the additional insured endorsement, evidencing the insurance
requirements of Kitsap Homes of Compassion before commencement of the work.
5. Indemnification
A. Kitsap Homes of Compassion does hereby agree to save harmless and defend the
City from all claims and liability due to the acts, errors or omissions of Kitsap
Homes of Compassion, its agents and/or employees, except for claims caused by
the sole negligence of the City. Such indemnity will include, but not be limited to,
all out-of-pocket expenses incurred by the City, including attorney’s fees, in the
event Kitsap Homes of Compassion fails or refuses to accept the tender of any
claims brought against the City, the basis for which are acts, errors or omissions of
Kitsap Homes of Compassion, its agents and/or employees.
B. The foregoing indemnity is specifically and expressly intended to constitute a
waiver of each Kitsap Homes of Compassion’s immunity under Washington’s
Industrial Insurance Act, RCW Title 51, as respects the City only, and only to the
extent necessary to provide the indemnified party with a full and complete
indemnity of claims made by the indemnitor’s employees. The parties
acknowledge that these provisions were specifically negotiated and agreed upon
by them.
6. Entire Agreement / Amendments. This Agreement, together with any attachments or addenda,
represents the entire and integrated Agreement between the Parties hereto, and supersedes all
prior negotiations, representations, or agreements, either written or oral. It is mutually agreed
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AFFORDABLE HOUSING SERVICES AGREEMENT Page 5 of 10
and understood that no amendment of any of the terms of this Agreement will be valid unless
made by written instrument properly signed by both Parties.
7. Notices. Except as otherwise identified in this Agreement, any notices required to be given
by the City to Kitsap Homes of Compassion, or by Kitsap Homes of Compassion to the City,
will be in writing and delivered to the Parties at the following addresses:
Kitsap Homes of Compassion City of Port Orchard
Scott Willard, Executive Director Robert Putaansuu, Mayor
7721 Beacon Place NE #101, 216 Prospect Street
Bremerton, WA, 98311 Port Orchard, WA 98366
8. Compliance with Laws. Kitsap Homes of Compassion will comply with all federal, state and
local laws, rules, regulations and ordinances applicable to the performance of this Agreement,
including without limitation all those pertaining to the COVID-19 pandemic, wages and hours,
confidentiality, disabilities and discrimination, including but not limited to the Americans with
Disabilities Act and all regulations interpreting or enforcing such Act.
9. Maintenance and Audit of Records. Kitsap Homes of Compassion will maintain books,
records, documents and other materials relevant to its performance under this Agreement,
which sufficiently and accurately reflect any and all direct and indirect costs and expenses
incurred or paid in the course of performing this Agreement. These records will be subject to
inspection, review and audit by the City, the Washington State Auditor’s Office, and
authorized federal agencies. Both Parties will retain all such books, records, documents and
other materials as required by the Washington State Records Retention policy as established
by the Secretary of State. In the event the City receives a public records request for records
pertaining to this Agreement and/or the Program, Kitsap Homes of Compassion agrees to assist
the City, at Kitsap Homes of Compassion’s sole cost, to meet the City’s obligations under the
Public Records Act, Ch. 42.56 RCW, at KCR’s sole cost.
10. Reporting. Kitsap Homes of Compassion will submit to the City a detailed accounting of the
use of the Funds by Kitsap Homes of Compassion with each monthly invoice submitted to the
City for payment. Kitsap Homes of Compassion will assist the City by providing any
information needed for the City to compile and submit the reports required to by the State of
Washington under RCW 82.14.540(11).
11. Waiver Limited. A waiver of any term or condition of this Agreement must be in writing and
signed by the waiving Party. Any express or implied waiver of a term or condition of this
Agreement will apply only to the specific act, occurrence or omission and will not constitute
a waiver as to any other term or condition or future act, occurrence or omission.
12. Default / Dispute Resolution. If either Kitsap Homes of Compassion or the City fails to
perform any act or obligation required to be performed by it hereunder, the other party will
deliver written notice of such failure to the non-performing party. The non-performing party
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AFFORDABLE HOUSING SERVICES AGREEMENT Page 6 of 10
will have thirty (30) days after its receipt of such notice in which to correct its failure to
perform the act or obligation at issue, after which time it will be in default (“Default”) under
this Agreement; provided, however, that if the non-performance is of a type that could not
reasonably be cured within said thirty (30) day period, then the non-performing party will not
be in Default if it commences cure within said thirty (30) day period and thereafter diligently
pursues cure to completion.
In the event a default continues and/or any dispute arises (for anything other than non-
payment) between the Parties, either party may request in writing that the issue be resolved by
mediation. If the parties are unable to resolve the dispute within ninety (90) days, then either
party will have the right to exercise any or all rights and remedies available to it in law or
equity. In any suit or action instituted to enforce any right granted in this Agreement, the
substantially prevailing party shall be entitled to recover its costs, disbursements, and
reasonable attorneys’ fees from the other party.
13. Venue and Choice of Law. Any action at law, suit in equity, or other judicial proceedings for
the enforcement of this Agreement or any provision thereof will be instituted only in the courts
of the State of Washington, Kitsap County. It is mutually understood and agreed that this
Agreement shall be governed exclusively by the laws of the State of Washington, both as to
interpretation and performance.
14. Assignment and Subcontracting. Kitsap Homes of Compassion may not assign, transfer,
delegate, subcontract or encumber any rights, duties, or interests accruing from this Agreement
without the express prior written consent of the City, which consent may be withheld at the
sole discretion of the City.
15. Severability. If any term or provision of this Agreement should be held to be invalid or
unconstitutional by a court of competent jurisdiction, such invalidity or unconstitutionality
will not affect the validity or constitutionality of any other term or provision of this Agreement,
and this Agreement will be construed in all respects as if such invalid or otherwise
unenforceable term or provision was omitted.
16. Independent Contractor. Kitsap Homes of Compassion is and will be at all times during the
term of this Agreement an independent contractor. Nothing in this Agreement will create an
employee/employer relationship between the Parties.
17. Independent Parties. The Parties to this Agreement, in the performance of it, will be acting in
their individual capacities and not as agents, employees, partners, joint ventures, or associates
of one another. The employees or agents of one party will not be considered or construed to
be the employees or agents of the other party for any purpose whatsoever.
18. Counterparts. This Agreement may be executed by the Parties using duplicate counterparts.
FOR KITSAP HOMES OF COMPASSION
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AFFORDABLE HOUSING SERVICES AGREEMENT Page 7 of 10
Adopted this ___ day of __________, 20__
________________________________
Scott Willard, Executive Director
FOR THE CITY OF PORT ORCHARD
Adopted this ____ day of ________, 20__
________________________________
Robert Putaansuu, Mayor
ATTEST/AUTHENTICATED:
______________________________
Brandy Wallace, MMC, City Clerk
APPROVED AS TO FORM:
______________________________
Charlotte A. Archer, City Attorney
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AFFORDABLE HOUSING SERVICES AGREEMENT Page 8 of 10
EXHIBIT A – SCOPE OF WORK AND FUNDS ALLOCATION
Kitsap Homes of Compassion Program Plan
2022
Summary
The MISSION of Kitsap Homes of Compassion is to provide safe, affordable, permanent housing
through comprehensive support services for those who are homeless or are struggling with
housing insecurity.
Kitsap Homes of Compassion desires to be the treatment agency of choice for homeless residents
moving towards housing stability throughout Kitsap County.
This contract is for funding our social work/case management services we provide to our
supportive housing shared homes, which is on average, $1,000 per month per home (which
houses, on average, 4 individuals). So, for one year, that would be $12,000 per home. This
Program would enable Kitsap Homes of Compassion to start 3 new supportive housing homes in
2022 within the city limits of Port Orchard, for a total contribution from March 1, 2022 to March
1, 2023 of $36,000.
We also propose Port Orchard paying the program fee for one room in one of the Kitsap Homes
of Compassion facilities located in the City of Port Orchard (at a cost of $600/mo) for a homeless
person who is in the process of applying for SSI but hasn’t been awarded SSI yet and who has not
been able to get Housing and Essential Needs (HEN) funding (HEN has a program to pay the
program fee for homeless who are applying to SSI, but funding is limited). We would let Melissa
Stern determine who would be best for that room, in consultation with our KHOC clinical
supervisor. Support for this program is a total contribution of $7,200/year.
We determine the program fee cost we charge the residents based on the cost of KHOC to rent the
house plus $100/mo for all the house utilities, including internet service and phone land line,
which KHOC provides, as well as room size (i.e. master bedrooms with a private BA are higher
than shared bathroom rooms). That cost is typically in the range of $600/mo to 750/mo.
We offer “low barrier” homes, where residents can drink alcohol in the house, and if their blood
alcohol level is above driving limits, they agree to stay in their bedroom and not in the common
areas. That is about 30% of our homes. Then the other 70% of our homes are “sober homes” where
zero alcohol is permitted and zero intoxicated is permitted. Many residents who are trying to quit
drinking and not be “temped” with alcohol prefer these homes. We will try to open a low barrier
home, but if the homeowner whom we rent the house from does not agree with it, we may need
to go to the sober home model.
All our homes permit tobacco smoking and marijuana smoking when done outside away from the
doors and windows (usually the make a smoking area in the back yard of the house.).
For the safety of the neighborhoods where the homes are located, we do not tolerate
methamphetamine usage, and all program participants agree to random urine drug testing if we
suspect drug use. We require that participants be clean from illegal drugs for 6 months before
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AFFORDABLE HOUSING SERVICES AGREEMENT Page 9 of 10
moving into the house (we are not designed as a drug rehab program – there are other programs
in the county that offer that service).
The $1,000/mo per home for behavior health services cost goes toward paying for our behavior
health staff which includes four KHOC housing navigators which are bachelor’s level social
workers, and one KHOC Clinical supervisor who is a licensed independent advance Social
Worker (master’s degree in social work), and one licensed counselor. These six behavioral health
specialists are highly trained and experienced at working with individuals with mental health
disorders and people with addictions, including comorbidities. They work with individuals in the
homes and are involved with there is crisis situations. These behavioral health specialists also
provide ongoing training and support to our volunteer house managers. This funding also helps
pay some of our administrative cost of offering these services.
If the City of Port Orchard helps us with this funding, we will give referrals from Melissa Stern
priority into placement into any openings in the Port Orchard homes.
Policy Goals, Objectives, and Strategies from the 2021 Kitsap County Behavioral Health
Strategic Plan
Kitsap Homes of Compassion focuses on four of the policy goals:
• Improve the health status and wellbeing of Kitsap County residents
• Reduce the incidence and severity of chemical dependency and/or mental health
disorders in adults and youth
• Reduce the number of people in Kitsap County who use costly interventions including
hospitals, emergency rooms, and crisis services
• Increase the number of stable housing options for chemically dependent and mentally ill
residents of Kitsap County
Supportive Housing services are a specific intervention for people who, but for the availability of
services, do not succeed in housing and who, but for housing, do not succeed in services.
Supportive Housing services help individuals who are homeless or unstably housed live with
maximum independence in community-integrated housing. Thus, KHOC’s program is meeting
several goals of Kitsap County’s strategic plan, reducing the use of other, more costly
interventions, improving the health of those with serious mental disabilities, and increasing the
number of stable, long-term housing options.
Outreach/marketing plan to reach your target population and how it ensures that eligible
persons from underserved communities learn about and have access to your program.
Kitsap Homes of Compassion actively partners with Kitsap Community Resources and their
Housing Solution Center, Salvation Army, Kitsap Rescue Mission, Catholic Community
Resources (their HEN program, Benedict House, and women’s shelters), Housing Bainbridge
Island, Fishline, and the City of Poulsbo. We proactively connect with all the community shelters,
hospitals, Kitsap Mental Health Services and Poulsbo Community Care Navigators. In addition,
we have a robust online presence that attracts participant applications. Our Housing Navigators
reach out to program applicants to assess their housing needs, their behavioral health needs and
health screening. Port Orchard homeless will be given priority for placement in these homes.
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AFFORDABLE HOUSING SERVICES AGREEMENT Page 10 of 10
How will you deliver culturally appropriate and competent services that meet the needs of
both clients and staff?
Staff are asked to attend training on cultural competence as the State and local partners make them
available. Internally, Kitsap Homes of Compassion consistently trains and supports cultural
competence. We have been careful to ensure that diversity and inclusion is highlighted in our
program screening. We also recognize that the chronic homeless and those with disabilities, as
well as those fleeing domestic violence require specific sensitivity. This is an area that we excel
in attending to in our screening tool, services and training.
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City of Port Orchard
216 Prospect Street, Port Orchard, WA 98366
(360) 876-4407 • FAX (360) 895-9029
Agenda Staff Report
Summary: Consistent with Substitute House Bill 1406 (Chapter 338, Laws of 2019) (“SHB 1406”), the City
Council authorized the City to utilize a portion of the State’s existing sales tax for affordable or supportive
housing efforts. In 2020, the City evaluated proposals to utilize these funds in an effective and efficient
manner, and the selected partner, Kitsap Community Resources-Housing Solutions Center, was unable to
utilize all the allocated funds within the extended contract term. That agreement, as amended, expired
December 31, 2021.
Since that time, the City has worked to identify other partners to utilize these funds to the benefit of the Port
Orchard community.
Staff identified Housing Kitsap as a qualified non-profit organization with an established program to provide
grants to low-income households (less than 60% median income level) in Kitsap County for the rehabilitation
of existing affordable housing. The program’s detailed plan is attached for reference. Staff negotiated an
agreement with Housing Kitsap for the City’s participation in the program to provide grants to low-income
households in the City of Port Orchard in the amount of $41,700, for the rehabilitation of existing affordable
housing units.
Recommendation: Staff recommends Council authorize the Mayor to execute an agreement with Housing
Kitsap for the use of SHB 1406 funding for affordable housing.
Relationship to Comprehensive Plan: N/A
Motion for consideration: “I move to authorize the Mayor to execute an agreement with Housing Kitsap
for the use of SHB 1406 funding in the amount of $41,700 for affordable housing.”
Fiscal Impact: Revenue from the Affordable and Supporting Housing Sales Tax will be used to fund the grant.
Alternatives: Do not authorize an extension and provide alternative guidance.
Attachments: Agreement with Housing Kitsap and Ex. A – Program Manual.
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AFFORDABLE HOUSING SERVICES AGREEMENT Page 1 of 8
AFFORDABLE HOUSING SERVICES AGREEMENT
This Affordable Housing Services Agreement (“Agreement”) is entered into by and between
Kitsap County Consolidated Housing Authority dba Housing Kitsap, a Washington Housing
Authority, and the City of Port Orchard, a Washington State municipal corporation (hereinafter
the “City” and collectively the “Parties”).
I. RECITALS
A. Housing Kitsap is a Municipal Corporation - Housing Authority formed under RCW 35.82.210
organized and existing under the laws of the State of Washington; and
B. The City of Port Orchard is a Washington municipal corporation organized and existing under
the Washington State Constitution and the laws of the State of Washington, and particularly
those set forth at RCW Title 35A; and
C. In the 2019 legislative session, the Washington state legislature passed SHB 1406 (codified at
RCW 82.14.540), which created a sales tax revenue sharing program that allows the City to
access a portion of state sales tax revenue (hereinafter, the “Funds”) to make local investments
in affordable housing over a 20-year term; and
D. The City is committed to utilizing this funding source to assist the citizens of Port Orchard by
investing in programs that commit to providing housing assistance for those below the 60%
median income level; and
E. Housing Kitsap operates a Housing Rehabilitation Program to provide loans and grants to low-
income households to assist with the rehabilitation of existing affordable housing units (the
“Program”); and
F. Housing Kitsap desires to partner with the City to provide loans and grants to low-income
households in the City of Port Orchard for the rehabilitation of existing affordable housing;
and
G. The City desires to engage Housing Kitsap to perform the public services described herein and
undertake the use of the City’s Funds for the affordable housing purposes;
NOW, THEREFORE, in consideration of the foregoing, and in consideration of the premises,
terms and conditions set forth below, it is hereby agreed as follows:
II. AGREEMENT
1. Affordable Housing Services. The City desires to engage Housing Kitsap’s Program by
utilizing Funds allocated to the City pursuant to SHB 1406 to assist low-income households
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AFFORDABLE HOUSING SERVICES AGREEMENT Page 2 of 8
in the City of Port Orchard with grants for the rehabilitation of existing, affordable housing.
Consistent with this goal, the parties agree to the following performance obligations:
A. City’s Duties. The City shall provide to Housing Kitsap the Funds in an amount up
to $41,700 for the term of this Agreement, contingent on the terms and conditions
herein. The City shall have no additional payment obligations to Housing Kitsap
beyond this allocation, and all funding is conditioned on Council appropriation.
i. Upon receipt of a complete invoice in a form acceptable to the City, the
City shall issue payment within thirty (30) days of receipt.
B. Housing Kitsap’s Duties. Housing Kitsap shall utilize the Funds for the Program,
as set out on Exhibit A hereto. In utilizing the Funds and administering the
Program, Housing Kitsap shall comply with all applicable state and local laws, and
shall exclusively utilize the Funds to provide for the rehabilitation of affordable
housing to benefit to those City of Port Orchard residents with an 0-60% of the
Area Median Income (AMI). Additional parameters for the Program are attached
hereto as Exhibit A.
i. Invoices shall be submitted monthly to the City, evidencing and
documenting that the requested payment was used for the public services
described herein and authorized by the City Council. Such documentation
shall evidence that the beneficiaries of the funding are Port Orchard
residents with a 0-60% of the Area Median Income (AMI), and that the
funding is used for the rehabilitation of units of affordable housing.
ii. Housing Kitsap shall keep cost records and accounts pertaining to this
Agreement available for inspection by City representatives for three (3)
years after final payment.
iii. Housing Kitsap will provide a detailed invoice including monthly program
activity, direct program staff time and indirect salary expenses as defined
in the Central Services Cost Allocation Plan. Direct staff and indirect cost
to the program shall not to exceed 10% of Funds.
2. Duration. This Agreement will commence upon mutual execution of this Agreement and will
expire on December 31, 2022, unless earlier terminated in accordance with the terms of this
Agreement.
3. Termination. The City may terminate this Agreement with or without cause upon thirty (30)
days’ advance written notice to Housing Kitsap and all work shall cease upon termination. In
the event of termination, Housing Kitsap may submit for payment from the Funds for all work
performed prior to termination, and the City have no obligation to provide Funds to Housing
Kitsap for any remaining, post-termination work. Upon termination or expiration of the
Agreement, all unused Funds shall be returned to the City.
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AFFORDABLE HOUSING SERVICES AGREEMENT Page 3 of 8
4. Insurance.
A. Housing Kitsap shall procure and maintain for the duration of the Agreement,
insurance against claims for injuries to persons or damage to property which may
arise from or in connection with the performance of the work hereunder by
Housing Kitsap, its agents, representatives, or employees.
B. No Limitation. Housing Kitsap’s maintenance of insurance as required by the
agreement shall not be construed to limit the liability of Housing Kitsap to the
coverage provided by such insurance, or otherwise limit the City’s recourse to any
remedy available at law or in equity.
C. Minimum Scope of Insurance. Housing Kitsap shall obtain insurance of the types
described below:
1. Automobile Liability insurance covering all owned, non-owned, hired and
leased vehicles. Coverage shall be written on Insurance Services Office
(ISO) form CA 00 01, or a substitute form providing equivalent liability
coverage. If necessary, the policy shall be endorsed to provide contractual
liability coverage.
2. Commercial General Liability insurance shall be written on ISO occurrence
form CG 00 01, or a substitute form providing equivalent liability coverage
and shall cover liability arising from premises, operations, independent
contractors and personal injury and advertising injury. The City shall be
named by endorsement as an additional insured under the Housing Kitsap’s
Commercial General Liability insurance policy with respect to the work
performed for the City.
3. Workers’ Compensation coverage as required by the Industrial Insurance
laws of the State of Washington.
D. Minimum Amounts of Insurance. Housing Kitsap shall maintain the following
insurance limits:
1. Automobile Liability insurance with a minimum combined single limit for
bodily injury and property damage of $1,000,000 per accident.
2. Commercial General Liability insurance shall be written with limits no less
than $1,000,000 each occurrence, $2,000,000 general aggregate.
3. Employer’s Liability each accident $1,000,000, Employer’s Liability
Disease each employee $1,000,000, and Employer’s Liability Disease –
Policy Limit $1,000,000.
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E. Other Insurance Provisions. The insurance policies are to contain, or be endorsed
to contain, the following provisions for Automobile Liability and Commercial
General Liability insurance:
1. Housing Kitsap’s insurance coverage shall be primary insurance as respect
the City. Any insurance, self-insurance, or insurance pool coverage
maintained by the City shall be excess of Housing Kitsap’s insurance and
shall not contribute with it.
2. The City will not waive its right to subrogation against Housing Kitsap.
Housing Kitsap’s insurance shall be endorsed acknowledging that the City
will not waive their right to subrogation. Housing Kitsap’s insurance shall
be endorse to waive the right of subrogation against the City, or any self-
insurance, or insurance pool coverage maintained by the City.
3. Housing Kitsap’s insurance shall be endorsed to state that coverage shall
not be cancelled by either party, except after thirty (30) days prior written
notice by certified mail, return receipt requested, has been given to the City.
If the General Liability coverage is written on a “claims made” basis, then
a minimum of a three (3) year extended reporting period shall be included
with the claims made policy, and proof of this extended reporting period
provided to the City.
F. Acceptability of Insurers. Insurance as provided by Housing Authority Risk and
Retention Pool.
G. Verification of Coverage. Housing Kitsap shall furnish the City with original
certificates and a copy of the amendatory endorsements, including but not
necessarily limited to the additional insured endorsement, evidencing the insurance
requirements of Housing Kitsap before commencement of the work.
5. Indemnification
A. Housing Kitsap does hereby agree to save harmless and defend the City from all
claims and liability due to the acts, errors or omissions of Housing Kitsap, its agents
and/or employees, except for claims caused by the sole negligence of the City.
Such indemnity will include, but not be limited to, all out-of-pocket expenses
incurred by the City, including attorney’s fees, in the event Housing Kitsap fails or
refuses to accept the tender of any claims brought against the City, the basis for
which are acts, errors or omissions of Housing Kitsap, its agents and/or employees.
B. The foregoing indemnity is specifically and expressly intended to constitute a
waiver of each Housing Kitsap’s immunity under Washington’s Industrial
Insurance Act, RCW Title 51, as respects the City only, and only to the extent
necessary to provide the indemnified party with a full and complete indemnity of
Page 179 of 221
AFFORDABLE HOUSING SERVICES AGREEMENT Page 5 of 8
claims made by the indemnitor’s employees. The parties acknowledge that these
provisions were specifically negotiated and agreed upon by them.
6. Entire Agreement / Amendments. This Agreement, together with any attachments or addenda,
represents the entire and integrated Agreement between the Parties hereto, and supersedes all
prior negotiations, representations, or agreements, either written or oral. It is mutually agreed
and understood that no amendment of any of the terms of this Agreement will be valid unless
made by written instrument properly signed by both Parties.
7. Notices. Except as otherwise identified in this Agreement, any notices required to be given
by the City to Housing Kitsap, or by Housing Kitsap to the City, will be in writing and
delivered to the Parties at the following addresses:
Housing Kitsap City of Port Orchard
Heather Blough, Executive Director Robert Putaansuu, Mayor
2244 NW Bucklin Hill Road 216 Prospect Street
Silverdale, WA 98383 Port Orchard, WA 98366
8. Compliance with Laws. Housing Kitsap will comply with all federal, state and local laws,
rules, regulations and ordinances applicable to the performance of this Agreement, including
without limitation all those pertaining to the COVID-19 pandemic, wages and hours,
confidentiality, disabilities and discrimination, including but not limited to the Americans with
Disabilities Act and all regulations interpreting or enforcing such Act.
9. Maintenance and Audit of Records. Housing Kitsap will maintain books, records, documents
and other materials relevant to its performance under this Agreement, which sufficiently and
accurately reflect any and all direct and indirect costs and expenses incurred or paid in the
course of performing this Agreement. These records will be subject to inspection, review and
audit by the City, the Washington State Auditor’s Office, and authorized federal agencies.
Both Parties will retain all such books, records, documents and other materials as required by
the Washington State Records Retention policy as established by the Secretary of State. In
the event the City receives a public records request for records pertaining to this Agreement
and/or the Program, Housing Kitsap agrees to assist the City, at Housing Kitsap’s sole cost, to
meet the City’s obligations under the Public Records Act, Ch. 42.56 RCW, at KH’s sole cost.
10. Reporting. Housing Kitsap will submit to the City a detailed accounting of the use of the
Funds by Housing Kitsap with monthly invoices. Housing Kitsap will assist the City by
providing any information needed for the City to compile and submit the reports required to
by the State of Washington under RCW 82.14.540(11).
11. Waiver Limited. A waiver of any term or condition of this Agreement must be in writing and
signed by the waiving Party. Any express or implied waiver of a term or condition of this
Agreement will apply only to the specific act, occurrence or omission and will not constitute
a waiver as to any other term or condition or future act, occurrence or omission.
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AFFORDABLE HOUSING SERVICES AGREEMENT Page 6 of 8
12. Default / Dispute Resolution. If either Housing Kitsap or the City fails to perform any act or
obligation required to be performed by it hereunder, the other party will deliver written notice
of such failure to the non-performing party. The non-performing party will have thirty (30)
days after its receipt of such notice in which to correct its failure to perform the act or
obligation at issue, after which time it will be in default (“Default”) under this Agreement;
provided, however, that if the non-performance is of a type that could not reasonably be cured
within said thirty (30) day period, then the non-performing party will not be in Default if it
commences cure within said thirty (30) day period and thereafter diligently pursues cure to
completion.
In the event a default continues and/or any dispute arises (for anything other than non-
payment) between the Parties, either party may request in writing that the issue be resolved by
mediation. If the parties are unable to resolve the dispute within ninety (90) days, then either
party will have the right to exercise any or all rights and remedies available to it in law or
equity. In any suit or action instituted to enforce any right granted in this Agreement, the
substantially prevailing party shall be entitled to recover its costs, disbursements, and
reasonable attorneys’ fees from the other party.
13. Venue and Choice of Law. Any action at law, suit in equity, or other judicial proceedings for
the enforcement of this Agreement or any provision thereof will be instituted only in the courts
of the State of Washington, Kitsap County. It is mutually understood and agreed that this
Agreement shall be governed exclusively by the laws of the State of Washington, both as to
interpretation and performance.
14. Assignment and Subcontracting. Housing Kitsap may not assign, transfer, delegate,
subcontract or encumber any rights, duties, or interests accruing from this Agreement without
the express prior written consent of the City, which consent may be withheld at the sole
discretion of the City.
15. Severability. If any term or provision of this Agreement should be held to be invalid or
unconstitutional by a court of competent jurisdiction, such invalidity or unconstitutionality
will not affect the validity or constitutionality of any other term or provision of this Agreement,
and this Agreement will be construed in all respects as if such invalid or otherwise
unenforceable term or provision was omitted.
16. Independent Contractor. Housing Kitsap is and will be at all times during the term of this
Agreement an independent contractor. Nothing in this Agreement will create an
employee/employer relationship between the Parties.
17. Independent Parties. The Parties to this Agreement, in the performance of it, will be acting in
their individual capacities and not as agents, employees, partners, joint ventures, or associates
of one another. The employees or agents of one party will not be considered or construed to
be the employees or agents of the other party for any purpose whatsoever.
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AFFORDABLE HOUSING SERVICES AGREEMENT Page 7 of 8
18. Counterparts. This Agreement may be executed by the Parties using duplicate counterparts.
19. Filing. In accordance with RCW 38.34.040, this Agreement will be filed with the Kitsap
County Auditor or listed on the web sites of the parties prior to its effective date.
20 . Disclosure. The parties understand that the City’s Mayor is, by virtue of his position, a
member of the KCCHA governing board. The parties understand and agree that the Mayor will
act on behalf of the City at all times during the term of this Agreement and will not act on behalf
of KCCHA or its Board. The Mayor will have no fiduciary duties with respect to KCCHA’s
interests under this Agreement and the Mayor’s sole fiduciary duty shall be to the City. The parties
agree that the Mayor’s involvement in this Agreement is not a conflict of interest for either party.
FOR HOUSING KITSAP
Adopted this ___ day of __________, 20__
________________________________
_________, Executive Director
FOR THE CITY OF PORT ORCHARD
Adopted this ____ day of ________, 20__
________________________________
Robert Putaansuu, Mayor
ATTEST/AUTHENTICATED:
______________________________
Brandy Wallace, MMC, City Clerk
APPROVED AS TO FORM:
______________________________
Charlotte A. Archer, City Attorney
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AFFORDABLE HOUSING SERVICES AGREEMENT Page 8 of 8
EXHIBIT A – SCOPE OF WORK AND FUNDS ALLOCATION
Housing Kitsap shall utilize the funds for its Home Rehabilitation Program, consistent with the
Housing Kitsap Home Rehabilitation Program Plan and Operations Manual attached hereto.
Funds shall be used for grants to accomplish affordable housing rehabilitation, to benefit
households with an 0-60% of the Area Median Income (AMI). Documentation evidencing all
expenditures by Housing Kitsap that meet these criteria shall be provided to the City with each
submitted invoice.
ATTACHMENT - Housing Kitsap Home Rehabilitation Program Plan and Operations
Manual
Page 183 of 221
HOUSING KITSAP
HOME REHABILITATION PROGRAM
PLAN AND OPERATIONS MANUAL
(Revised Dec 2021)
Page 184 of 221
ii
INTRODUCTION ...........................................................................................................4
I. PROGRAM PLAN ......................................................................................................5
1. HOUSING REHABILITATION PROGRAM ..............................................5
A. HOME REHABILITATION FINANCING - OWNER OCCUPIED .....5
B. LOAN REQUIREMENTS.......................................................................6
2. HOME REPAIR AND HANDICAP ACCESS GRANTS.. .........................8
3. NONDISCRIMINATION….……………………………………...……….9
4. MARKETING/OUTREACH……………………………………...……….10
II. PROGRAM OPERATION ........................................................................................10
1. BASIC FUNCTIONS ....................................................................................10
2. ORGANIZATION & STAFFING .................................................................11
III. THE REHABILITATION PROCESS ......................................................................12
1. GENERAL DESCRIPTION ..........................................................................12
2. STEP-BY-STEP INSTRUCTIONS……………………………………… 13
REHAB PROCESS CHART……………………………………..…… 14
. VERIFICATIONS REQUIRED………………………..………………15
BID CONTRACTING REQUIREMENTS………………..…………...15
APPLICATION………………………………………..……………….15
HOME REHABILITATION BRIEF………………………………..….17
HOME REPAIR GRANTS………………………………………..…...18
B. INSPECTION, DRAFT WORK LIST & PRELIMINARY COST
ESTIMATE………………………………………………………..……19
C. PROJECT SELECTION…………………………………………..……19
D. FINAL REHABILITATION PLAN/WORK LIST………………..……20
E. SOLICITATION OF BIDS/CONTRACTOR SELECTION…..……….22
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TABLE OF CONTENTS
iii
F. LOAN PACKAGE.....................................................................................23
G. LOAN CLOSING ......................................................................................24
H. CONTRACT EXECUTION AND NOTICE TO PROCEED ...................25
I. REHABILITATION WORK .....................................................................26
J. LOAN CLOSE OUT..................................................................................27
K. WALK AWAY POLICY………………………………………………...27
L. LIMITED WARRANTY…………………….…………………………...29
M. LOAN PORTFOLIO MANAGEMENT………...……………….……....30
N. SUBORDINATION………………………………………………………31
O. LOAN MODIFICATION…………………………………………………32
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4
INTRODUCTION
The preservation of existing affordable housing is critical to the provision of reasonable cost
housing very low income households. It is also a necessary element in any plan to revitalize
older deteriorated neighborhoods. Housing is not a static asset which can be built and then
ignored. Ongoing maintenance, repairs, and occasional refurbishing of the basic systems (roof,
electrical, plumbing, foundation, etc.) must be combined with adapting or remodeling of the
house to fit changing conditions and energy efficiency needs (rising energy costs, higher
electrical use, etc.).
Housing rehabilitation is both simple and complex. It is not a high technology area which needs
a highly educated engineer just to understand the concepts. Everyone has lived in some type of
housing and we all know how to complete basic building maintenance and repair. However,
implementation of a public neighborhood rehabilitation program includes the responsibility for
wise use of public funds, detailed housing inspections and conditions analysis, development of
individual rehab plans, reviewing and verifying financial applications, verifying ownership and
title documents, reviewing construction bids, conducting loan closings, monitoring construction
work, servicing loans, mediating disputes, advising and educating homeowners in the loan and
construction process, advising small contractors, and communicating the program to potential
applicants.
To effectively implement a neighborhood rehabilitation program, clear program goals, objectives
and policies must be adopted, clear management responsibility and authority must be established,
and the program staff must have a cross-section of generalist abilities and detailed technical
knowledge. Underestimating the complexities of housing programs combined with poor
planning, inappropriate or unclear assignment of responsibilities, and poor staff selection or
training has resulted in many ineffective public neighborhood rehabilitation programs.
This workbook is divided into three parts. Part I includes the program guidelines, including
program goals, objectives, policies and standards. Part II includes information on the program
operation and organization. Part III includes a description of the rehabilitation process with
detailed implementation instructions and forms for use in each step of the rehabilitation process.
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5
I. PROGRAM PLAN
1. HOME REHABILITATION PROGRAM
GOALS AND OBJECTIVES: The goal of the Home Rehabilitation Program is to assist in the
preservation and revitalization of older neighborhoods throughout Kitsap County and to improve
the quality of housing available to households with very low incomes. The program objectives
are:
1. Provide most of the public assistance to the lowest income households, disabled and veteran
populations and elderly population. Partnerships with other local agencies will be a priority;
2. Assist in the basic rehabilitation of as many housing units as possible;
3. Concentrate the public resources in correcting health and safety hazards, eliminating
neighborhood blighting conditions, and completing energy conservation improvements;
4. Encourage community and government agency partnerships;
5. Encourage property owners to use private resources wherever possible in completing their
building rehabilitation work;
6. Incorporate energy efficient measures (when rehab price and scope allows) like, 90% or
greater efficient furnace, energy star fixtures, Low E windows, increased insulation, low
flow plumbing fixtures, low voltage high efficiency ventilation fans, etc.
The HOUSING REHABILITATION LOAN is the primary tool available to assist owners in
rehabilitating their properties.
A. HOME REHABILITATION FINANCING - OWNER OCCUPIED
ELIGIBLE HOMEOWNERS: These loans are available to homeowners within the following
limits (Table 1). The income eligibility will be determined by using the “DETERMINING
INCOME AND ALLOWANCES FOR HOME PROGRAM MANUAL, specifically using the 24
CFR Part 5.609 method.
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6
1. The income level of the household is below the following levels, this program targets very-
low and extremely low income levels:
TABLE 1
Income Family Size
Level 1 2 3 4 5 6 7 8+
Very
Low
$32,950 $37,650 $42,350 $47,050 $50,850 $54,600 $58,350 $62,150
These income eligibility limits will be updated annually using Department of Housing and Urban
Development Income: Determined by HUD, 24 CFR Part 5.609 Annual Income/Assets
Worksheet income limits. Present annual income shall include the gross income of all
permanent household members at the time the application is submitted. The actual annual
income of the applicant must be considered rather than an annualization of the present weekly or
monthly income. All support payments, benefit payments and interest income must be included
in determining eligibility for a loan and the applicable income category. Self employed
applicants will be reviewed on a case by case basis to determine eligibility and income category.
2. Loans are available to assist very low and extremely low households County-wide outside
of the City of Bremerton.
3. Maximum loan amount will be $35,000.
4. Grant and loans will be determined by the need in the home or property. Manufactured
homes
on leased property will be granted and manufactured homes on land or homes on land will be
loans.
B. LOAN REQUIREMENTS –
ELIGIBILITY: Only buildings which need the correction of health and safety hazards,
elimination of exterior blighting conditions, provision of handicapped access, or cost effective
energy conservation improvements are eligible for housing rehab loans.
LOAN DOCUMENTS AND SECURITY: A Promissory Note will be used to document the
loan. A Deed of Trust will be recorded on the property being rehabilitated as security for the
loan. When a public loan is combined with a private loan, the public loan security may be
subordinated to the private loan.
SUBORDINATION: At the Borrower’s request, the Home Rehabilitation Program may
subordinate to a refinance, upon approval of the Program Director, on a first mortgage if the
Borrower is seeking a lower interest rate and lower monthly payments with no cash taken out on
their first mortgage, and there is not enough equity in the home to payoff the rehabilitation loan.
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7
ELIGIBLE REHABILITATION WORK:
1. Health and safety hazards should take priority. Health and safety hazards are conditions
which do not meet the minimum standards contained in the Uniform Housing Code or other
life safety codes, or handicapped access as defined in the Americans with Disabilities Act
(ADA), plus any immediate lead-based paint hazard.
2. Cost effective energy conservation work will be completed if loan funds after correction of
health and safety hazards have been financed.
3. Elimination of exterior blighting work should be completed if loan funds are available after
correction of health and safety hazards and cost effective energy conservation work has been
finished.
4. Building conservation work may be included if the owner is eligible for borrowing enough
funds to complete the correction of all the health and safety hazards and cost effective
energy conservation work and elimination of exterior blighting conditions and additional
loan funds are available upon approval of the Program Director.
RESTRICTIONS ON THE WORK WHICH CAN BE FINANCED:
1. First priority of the rehabilitation loan funds should be used in correcting health and safety
hazards, completing cost effective energy conservation improvements and elimination of
exterior blighting conditions.
2 Wood stoves financed with housing rehab funds must be energy efficient and certified.
Their cost should not exceed the cost of a standard product.
3. Carpeting financed through the program, must be standard, good quality carpet which is
long lasting and easy to maintain and must meet green label plus.
4. Additions are not eligible except where required to alleviate an overcrowded condition as
defined in the Uniform Housing Code.
5. Non-essential luxury improvements, area rugs, furniture, non-essential appliances, cosmetic
improvements are not eligible rehabilitation costs.
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8
6. Exterior improvements:
a. must be compatible with and enhance the original character of the building and site;
b. cannot remove or alter historic material or distinctive architectural features;
c. must repair deteriorated architectural features wherever possible;
d. shall be completed in a manner which retains the essential form and integrity of the
existing structure; and
e. the State Historic Preservation Officer (SHPO) must be contacted if the building is 45
years or older.
OTHER ELIGIBLE LOAN COSTS: Title insurance information, document recording and
necessary architectural or engineering fees are eligible loan costs.
METHODS FOR COMPLETING THE REHABILITATION WORK: Utilization of one
contractor under one contract for all the work is the method preferred for completing the
rehabilitation work. This method has been selected because of the need for a fixed maximum
cost on each loan and a fixed time limit for completing the rehabilitation of each house. The
Program Staff reserves the right to solicit additional contractors based upon performance and/or
availability of contractor.
All work must be completed by an annual contracted registered, insured, and bonded contractor..
The contractor must also not be debarred from or listed on the Excluded Parties List System
(EPLS), Federal debarment. The contractor must be an equal opportunity employer and reach out
to small, minority and women-owned subcontractors and suppliers.
2. HOME REPAIR AND HANDICAP ACCESS GRANTS
GOALS AND OBJECTIVES: The goal of the Home Repair and Handicap Access Grant is to
provide grants for housing repairs and removal of architectural barriers for those in mobile
homes on leased land and must be qualified, Very Low-income households. The program
objectives are:
1. Preservation of affordable housing;
2. Priority given to the very low elderly, disabled and veteran populations;
3. Provide most of the public assistance to the lowest income households;
4. Concentrate the public resources in correcting health and safety hazards, eliminate
deteriorated conditions; and remove architectural barriers to handicap access; and
5. Encourage reinvestment in the older neighborhoods of Kitsap County.
ELIGIBLE HOMEOWNERS: These grants are available to homeowners within the following
limits:
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9
1. The present annual income level of the household is the Very Low income limits shown in
Table 1. Present annual income shall include the gross income of all permanent household
members at the time the application is submitted. The actual annual income of the applicant
must be considered rather than only an annualization of the present weekly or monthly income.
All support payments, benefit payments and interest income must be included in determining
eligibility for a loan and the applicable income category. Self employed applicants will be
reviewed on a case by case basis to determine eligibility and income category.
2. The house may be located throughout the Kitsap County outside of the city of Bremerton.
3. The homeowner must have been the owner and occupant of the house where work is needed
for a period of one or more years.
GRANT AMOUNTS AND TERMS: The maximum available emergency grant is $18,500.
ELIGIBLE WORK: Elimination of health and safety hazards, energy efficiency and
architectural barriers to handicap access.
GRANT REQUIREMENTS:
GRANT DOCUMENTS AND SECURITY: A Grant Agreement will be used to document the
grant.
OTHER ELIGIBLE GRANT COSTS: Title check costs, and necessary engineering fees are
eligible costs.
METHODS FOR COMPLETING THE REHABILITATION WORK: Utilization of one
contractor under one contract for all the work is the method preferred for completing the
rehabilitation work. This method has been selected because of the need for a fixed time limit for
completing the rehabilitation of each house. The Program Staff reserves the right to solicit
additional contractors based upon performance and/or availability of contractor.
All work must be completed by an annual contracted registered, insured, and bonded contractor..
The contractor must also not be debarred from or listed on the Excluded Parties List System
(EPLS), Federal debarment. The contractor must be an equal opportunity employer and reach out
to small, minority and women-owned subcontractors and suppliers.
3. NONDISCRIMINATION
Federal regulations prohibit discrimination against certain protected classes. State and local
requirements, as well as PHA policies, can prohibit discrimination against additional classes of
people.
The Home Rehabilitation Program shall not discriminate because of race, color, sex, religion,
familial status, age, disability or national origin (called-protected classes).
The Home Rehabilitation Program will not use any of these factors to:
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10
Deny to any family the opportunity to apply for housing, nor deny to any qualified applicant the
opportunity to participate in the Home Rehabilitation Program;
Provide housing that is different from that provided to others;
Subject anyone to segregation or disparate treatment;
Restrict anyone's access to any benefit enjoyed by others in connection with the housing
program;
Treat a person differently in determining eligibility or other requirements for admission;
Steer an applicant or tenant toward or away from a particular area based on any of these factors;
Deny anyone access to the same level of services;
Deny anyone the opportunity to participate in a planning or advisory group that is an integral part
of the housing program;
Discriminate in the provision of residential real estate transactions;
Discriminate against someone because they are related to or associated with a member of a
protected class;
Publish or cause to be published an advertisement or notice indicating the availability of housing
that prefers or excludes persons who are members of a protected class.
4. MARKETING/OUTREACH
The Home Rehabilitation Program strives to serve the maximum numbers of very-low income
households within our service area. All outreach material is targeted to those agencies and
information referral services that have contact and on-going access to very low income clientele.
The Program Staff will provide brochures and applications and will work with local agencies and
community groups such as Kitsap Community Resources, USDA-Rural Housing Services,
Kitsap Housing Coalition, Asset Building Coalition of Kitsap, Housing Resource Board of
Bainbridge Island, State of Washington, Department of Social and Health Services etc. Due to
the length of the Wait List, the Program does not consistently advertise in the local newspaper
publications.
II. PROGRAM OPERATION
1. BASIC FUNCTIONS
The basic functions which are provided by the Home Rehabilitation Program are as follows:
1. Provide program information and communication to the community and potential
applicants;
2. Housing inspections, technical advice, review of contractor qualifications and monitoring
of construction work;
3. Application and financial review, loan review and approval, loan processing, loan servicing
and loan draw processing;
4. Accounting support;
5. Program management including maintaining a reasonable production level, resolving
disputes; completing program reports, training staff, troubleshooting and other miscella-
neous functions.
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11
2. ORGANIZATION AND STAFFING
The Home Rehabilitation Program is operated by the Kitsap County Consolidated Housing
Authority d/b/a Housing Kitsap. Staff includes, Program Director, Program Coordinator and
Construction Manager.
The Program Director is responsible for overall policy issues, review and approval of the
operations manual and review of all exceptions to approved guidelines and process. He/She is
responsible for developing, revising and monitoring the general program operation. The
Program Director supervises all program operations.
The Program Coordinator processes the loan application; prepares the loan package; closes
loans; and provides loan servicing. This work includes, but is not limited to, maintaining
accurate records and files on each applicant and providing the clerical, typing, scheduling and
bookkeeping support services along with the Finance Department staff person for the program;
providing general program information in response to phone and walk-in requests; assisting
owners, contractors and rehabilitation staff in scheduling needed appointments; conducting loan
application interviews, obtaining information verification, closing loans and maintaining the
financial records on each approved loan; servicing loans on completed projects; preparing
monthly activity reports, contacting each social service group that provides services to low
income Kitsap County residents; preparing newspaper advertising on program; and presenting
program information at community group meetings.
The Construction Manager provides technical services to the owner and contractor; prepares the
bid package; processes the draws; provides troubleshooting assistance on technical problems
which occur in the rehab process; and monitors the work process. The work of the Construction
Manager includes, but is not limited to, completing detailed initial building inspections,
inspection reports, preliminary work lists, heat loss analyses, and general cost estimates;
producing the complete final work lists, and soliciting and reviewing bids; conducting a pre-
construction conferences; monitoring the rehabilitation work; completing final inspections;
scheduling and assisting in the distribution of program information to each target area household
and property owner.
The Home Rehabilitation Program office is located at 345 6th Street, Suite 100, Bremerton, WA
98337. The office is open from 8:00 a.m. to 4:30 p.m. during normal work days.
Community Information: News releases or brochures shall be issued periodically on the
program. Information will be distributed throughout the County and/or mailed to potential
applicants. The community information effort is to communicate with people who need
assistance at a pace which provides a reasonable flow of applications either through
advertisement and/or community partners. If the Wait List is long, the Program will hold off on
advertisement.
III. THE REHABILITATION PROCESS
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12
1. GENERAL DESCRIPTION
The housing rehabilitation process requires the Program Staff to work in a complex process,
advising participants with diverse interests and fulfilling many functions not usually expected of
public employees. The initial Program Staff function is to communicate the details of the
rehabilitation process and requirements to the individual applicant. The Program Staff must be
able to advise the owner, review the feasibility of the application and make a preliminary
determination of the eligibility. When an application appears to qualify on a financial basis, the
Program Staff completes an independent and objective review of the conditions of the housing
unit and what repairs and improvements are needed.
After the preliminary review and approval, the Program Staff role shifts to technical advisor for
the owner. In the process of developing the final rehabilitation plan, the Program Staff needs to
provide advice and technical assistance needed by the owner in matching the housing
improvement needs with the available resources while meeting the Program requirements.
The Program Staff will select a contractor, and writes the planned work for conformance with
program requirements, the contractor (to insure that he or she is properly licensed and registered)
and the bid (for the reasonableness of the price and the potential for satisfactory completion of
the work within the available resources). Once a workable package is prepared, the Program
Coordinator submits a package to the Program Director for project approval.
Throughout the remainder of the rehabilitation process, the Program Staff shifts from role to
role: owner, advisor, public reviewer for conformance with Program requirements, loan officer
and mediator of disputes. The Program Staff prepares all loan documents, conducts a loan
closing and records all loan documents in conformance with local, state and federal laws and
regulations. The Program Staff reviews the proposed final construction documents for
conformance with Program and loan requirements and then advises the owner on the contract
execution. During the construction process, the Program Staff needs will be available to conduct
project inspections on the appropriateness of the work being completed. As loan officer, the
Program Staff reviews the work completed in response to requests for loan draws. Once the
work has been fully completed, the Program Staff reviews the rehabilitated building for
conformance with all of the Program standards and the approved rehabilitation plan.
After the housing has been rehabilitated, the Program Staff can provide additional valuable
assistance through follow-up, information and advice on periodic maintenance schedules and
warranty repairs needed.
2. STEP-BY-STEP INSTRUCTIONS AND FORMS
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13
The best assurance of providing a successful rehabilitation process resulting in improved housing
units at a reasonable production level with a minimum of disputes is to have a well defined, easy
to understand process, which clearly identifies each participant's roles and responsibilities. In the
following pages, the process is outlined in the steps. The title of the person who is usually
assigned the lead responsibility for the successful completion of a step is listed after the heading
for each step. Within the description of each step, the work objective is given and a
chronological work description is provided in a cookbook format. At each point where a
standard form or letter is needed the number of the appropriate form or document is listed in
parentheses. The standard forms and sample documents are included at the end of each step
description. The rehabilitation process is a legal and financial process which must be properly
documented and implemented. The steps described and forms included in this workbook are
organized and provided with the objective of reducing the paperwork and process to the
minimum required to provide a good quality product for participants in a reasonable amount of
time.
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14
THE REHAB PROCESS
1 2 3
6 5 4
7 8 9
Submit
application
Determine
Application
Eligibility
Verify
Ownership
Income
Taxes
Insurance
start
Environme
ntal
Review
Bid Project
and Select
Contractor
Inspect
Property
Create
Work List
and Cost
Estimate
Sign
Contracts
Deed or
Grant with
Participant
and
Contractor
Perform
Renovation
Inspect
Progress
and
Approve
Approve
Change
Orders and
Progress
Payments
Sign Final
Contracts
Record
Deed
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15
VERIFICATIONS REQUIRED FOR HOME REHABILITATION LOANS
1. Application: Fully completed & signed application. 2. Income: Determined by HUD, 24 CFR Part 5.609 Annual Income/Assets Worksheet. Written employer verification or three of the most current pay stubs, current award letters for SSA or SSD and last year's Income Tax Return (two year's tax returns if self-employed). 3. Proof of Ownership: Last recorded Deed showing applicants ownership or mobile home vehicle registration. 4. Assessed value plus 25% of estimated rehab cost of county assessor records. 7. Loan Security: Promissory Note and Deed of Trust.
HOME REHABILITATION LOAN PROGRAM
BID/CONTRACTING REQUIREMENTS
BIDS: Must advertise the contract for bid in a local paper of general circulation or through the State website for Small Works Contractors. Should obtain 2 to 3 or more written bids using Program bid forms. Utilization of one contractor under one contract for all the work is the method preferred for completing the rehabilitation work. This method has been selected because of the need for a fixed maximum cost on each loan and a fixed time limit for completing the rehabilitation of each house. The Program Staff reserves the right to solicit additional contractors based upon performance and/or availability. CONTRACT: Program standard form with up to four partial payments plus final.
APPLICATION
Responsible: Program Coordinator
In the application process, the interested owner/potential applicant should be provided with
overview information on the rehabilitation process, the processing time frame, the eligibility
requirements, the work which can be financed, and other specific program requirements. The
program needs to obtain a detailed application with information on the property to be
rehabilitated and information on the applicant's income and expenses. The property ownership,
income information provided will need to be verified before a loan is closed.
1. Provide people who contact the Program with information on the program, eligibility
requirements and priorities and an appropriate application form.
2. For people interested in submitting an application for a home rehabilitation loan, review the
application to the extent they have been able to complete it, including information on:
a. Property location;
b. Recent income (pay, Social Security, etc.) for owner occupants;
c. General description of rehab work needed on property;
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d. Loan, mortgage or real estate contracts; and
e. Ownership information.
3. Assist the applicant in completing the detailed application form.
4. Review the appearance of eligibility of the applicant (property location, ownership,
occupancy, indebtedness, income, etc.).
a. Owner occupied:
1) Very low income: Review the income information and location of the property to
insure that the property is within the County program area.
5. If the applicant appears to be ineligible for a loan, carefully explain to the applicant the
reasons for ineligibility.
6. If the applicant appears to be eligible for rehabilitation assistance, review with the owner the
appropriate detailed program description CDBG Owner Occupied Housing, and review the
process and requirements of the rehabilitation program with the applicant. Specifically
review: a. The assistance to be provided by the program (detailed inspection, draft work list, general cost estimate and a work plan, and contractor selection and construction monitoring); b. The work requirements and restrictions: all health and safety hazards must be repaired; all cost effective energy conservation work must be included in the work to be done, the majority of the funds must be used for health and safety repairs and energy conservation work; limitation of modernization work; and non-essential or luxury improvements cannot be completed with the public loan funds; c. Maximum loan amounts, interest rates, if applicable, and repayment terms; d. Loan documents and security requirements; e. The process and probable time frame for loan and work approval.
8. Set-up a case file on the applicant including the name, address and appropriate dates.
9. An Environmental Review must be performed on each rehabilitation project. Check the
location of the property in relation to flood plains and age of the structure for historic
significance. Submit the Environmental Review form to CDBG for approval.
10. Check contractor debarment on the Excluded Parties List System (EPLS), Federal
debarment.
11. If the financial and ownership information indicates insurmountable problems, cancel the
inspection and review the reason for the disqualification of the application with the Program
Director. Send the owner a formal application rejection letter and right to appeal.
12. If the project appears to be feasible, give the Construction Manager the case file including
inspection forms and a note on the scheduled inspection time.
THE HOME REHABILITATION PROGRAM
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WHAT IS IT?
The Home Rehabilitation Program provides assistance for the rehabilitation of owner occupied
housing. The intent of the program is to assist in the provision of safe housing, affordable to
very low income people and to assist in the preservation of affordable housing and improvement
of older residential neighborhoods.
WHO IS ELIGIBLE FOR ASSISTANCE?
Owner occupied housing occupied very low income households county-wide outside of the city
of Bremerton.
WHAT ARE THE TERMS OF ASSISTANCE FOR OWNER OCCUPIED HOUSING?
The rehabilitation assistance is provided as a loan at zero interest, deferred for 20 years with no
required monthly payments for low and very low income owners.
WHAT TYPE OF WORK CAN BE FINANCED?
Basic health and safety problems and, as appropriate, barriers to handicapped accessibility.
Exterior deterioration and cost effective energy conservation work to be completed where
feasible. A majority of the rehabilitation costs must be in basic repairs, elimination of the
exterior deterioration and cost effective energy conservation improvements. Limited general
improvements to make a building more livable may be eligible for financing.
Grant and loans will be determined by the value in the home or property. Manufactured homes
on leased property will be grants and manufactured homes on land or homes on land will be
loans. Grants may be given to mobile homeowners on owned land if there is an emergency repair
due to health and safety, electrical, plumbing or leaking roof at the discretion of the Program
Director on a case by case basis.
HOW DOES THE LOAN AND REHABILITATION PROCESS WORK?
The building rehabilitation process is cautious and detailed, including a detailed property
inspection, condition analysis and cost estimate; analysis of project feasibility; verification of
ownership, income eligibility; development of a detailed rehabilitation plan and solicitation of
contractor bids by the staff; loan closing and contract execution; and disbursement of loan funds
on the basis of the work which has been completed. The Program Staff will assist you in
preparing for the rehabilitation of your house and in monitoring the work.
FOR MORE INFORMATION, PLEASE CALL (360) 535-6100
The Home Rehabilitation Program is an equal opportunity lender.
THE HOME REHABILITATION PROGRAM
HOUSING REPAIR GRANTS
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ELIGIBLE HOMEOWNERS: These grants may be available to homeowners with mobile
homes on leased land including disabled people, veterans or elderly as a priority that fall under
50% of the median income ( SEE TABLE #1) for Kitsap County. Grants may be given to
mobile homeowners on owned land if there is an emergency repair due to health and safety at the
discretion of the Program Director on a case by case basis. This income eligibility will be
determined by using the “DETERMINING INCOME AND ALLOWANCES FOR HOME
PROGRAM MANUAL, specifically using the 24 CFR Part 5.609 method.
1. The house may be located within the Kitsap County outside of the city of Bremerton.
2. The homeowner must have been the owner and occupant of the house where work is needed
for a period of one or more years.
GRANT AMOUNTS AND TERMS: The maximum available Emergency Grant is $20,000.
ELIGIBLE WORK: Elimination of health and safety hazards and architectural barriers to access
by the handicapped.
GRANT REQUIREMENTS
GRANT DOCUMENTS: A Grant Agreement will be used to document the grant.
OTHER ELIGIBLE GRANT COSTS: Title information costs and necessary engineering fees are
eligible grant costs.
METHODS FOR COMPLETING THE REHABILITATION WORK: Utilization of one
contractor under one contract for all the work is the method preferred for completing the
rehabilitation work. This method has been selected because of the need for a fixed time limit for
completing the rehabilitation of each house. The Program Staff reserves the right to solicit
additional contractors based upon performance and/or availability of contractor.
All work must be completed by an annual contracted registered, insured, and bonded contractor..
The contractor must also not be debarred from or listed on the Excluded Parties List System
(EPLS), Federal debarment. The contractor must be an equal opportunity employer and reach out
to small, minority and women-owned subcontractors and suppliers.
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B. INSPECTION, WORK LIST & PRELIMINARY COST ESTIMATE
Responsible: Construction Manager
During the initial inspection, the existing housing conditions need to be documented in a detailed
format which is easy for the owner to understand. In addition, all of the basic information
needed in planning the home repairs should be gathered at this time, as needed (room sizes,
window sizes, photographs, etc.). A preliminary Work List and general cost estimate are needed
to make a preliminary determination on the feasibility of a housing rehabilitation loan.
1. Call to scheduled inspection.
2. Conduct a complete housing inspection utilizing the inspection forms in the inspection:
a. Indicate all health and safety hazards, including exterior building deterioration
problems;
b. Indicate the condition of all items listed on the inspection form;
c. List all repairs and improvements which appear to be advisable to complete during
rehabilitation;
d. List all special concerns or plans which the owner and/or occupant has for each area of
the house; and
e. Take all measurements needed to prepare a Cost Estimate, an Estimate of Value. Take a
picture of each exterior elevation and special conditions or problem areas.
3. Within a short time after the inspection has been conducted, review the field inspection
notes and complete a full inspection report and preliminary Work List.
4. Complete a preliminary Cost estimate/Value worksheet.
5. Any homes built prior to 1978 will get tested for lead hazards. If lead is present or presents a
hazard it must be stabilized. HUD Form lead safe housing check-list should be used and the
owner will be given a Protect Your Family From Lead In Your Home pamphlet.
C. PROJECT SELECTION
Responsible: Program Coordinator
The basic determination of eligibility for project participation and the approximate dollar amount
must be made at this time. This decision needs to be a careful balancing of need, public
objectives and protection of public funds. All applications must be evaluated on the basis of
established and objective standards which are consistently applied to all applications.
1. Review the feasibility of eligibility based on the additional information provided by the
Detailed Home Inspection Report and the Preliminary Cost Estimate/Value worksheet.
2. Owner Occupied: The home must be owner occupied. The Program Staff recognizes that
people who have variable and unpredictable income or potential for large and unpredictable
medical expenses (disabled/elderly/veteran people), people who have recently started a new
job, people with poor credit records and very low income people will not be able to use
private financing sources.
3. If the owner appears to qualify for the rehabilitation program, schedule an appointment with
the owner, the Program Coordinator and the Construction Manager to review the
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preliminary determination of the maximum loan amount for which the applicant has
qualified, the detailed home inspection report, the general cost estimate and the instruction
sheets for preparing a work write-up. Request the owner to bring any additional financial or
ownership verifications needed. However, income can be verified through copies of income
tax returns, award letters, paycheck stubs or employer records. Self-employed applicants
must provide copies of the most recent years of income tax returns.
4. If the owner is not approved the rehabilitation program due to eligibility, the project exceeds
the amount per project or the Walk Away Policy, review the application with the Program
Director and then send the applicant a letter stating the specific reasons for disqualification
and his or her right of appeal.
5. Review the project selection decision and maximum loan amount with Program Director.
6. In the preliminary review appointment, carefully review the inspection report and pre-
liminary work list, the work options and the cost estimates. Ask the owner to review the
preliminary work list to provide the basis for the final rehabilitation plan.
D. FINAL REHABILITATION PLAN/WORK LIST
Responsible: Construction Manager, Program Coordinator
During this step, the Program Staff will develop a specific housing rehabilitation plan which is
feasible to complete within the loan funds available and which meets the program requirements.
The plan must include specific work and material descriptions, which will enable the Program
Staff to solicit a complete bid. This work description will also be the basic document in the
construction contract.
1. Provide owners with a copy of the Loan Agreement.
2. Review the Work List which has been prepared by the Program Staff.
3. Prepare revised cost estimate based on the final rehabilitation plan and the selected method
for completing the work. If the revised cost estimate substantially exceeds the maximum
potential loan amount, the Construction Manager will revise the Work List, as needed, to
reduce the cost of the work, but must address all health and safety issues. Cost reductions
should be approached by first selecting less expensive repairs or material; second (if
needed), by eliminating some or all modernization and general improvements work; and
finally (if still needed), by cutting the exterior deterioration and building conservation
improvements. If justified and needed, the Program Director at its discretion may increase
rehabilitation amount. Correction of all health and safety hazards and any immediate lead-
based paint hazards must always be completed.
4. Review the final Work List to assure that health and safety hazards indicated in the detailed
inspection report will be corrected and that any historic conditions will be met. If all
hazards will be corrected, have the work list typed in final form, if needed.
REHABILITATION LOAN PROGRAM
COMPLETING A FINAL REHAB PLAN
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(WORK LIST)
IDENTIFYING PROBLEMS:
Review the detailed inspection report and list any problems you now have with the building
which are not indicated on the inspection report. The list of problems needs to be prioritized
according to the following categories:
1. HEALTH AND SAFETY HAZARDS -- potential fire hazards, faulty wiring, leaking
plumbing, unsafe stairways, lead, leaking roofs, settling foundations and other hazards.
2. ENERGY CONSERVATION PROBLEMS -- those conditions (furnace, insulation, etc.)
which, if corrected, will reduce future heating and operating cost to the owner or occupants.
3. EXTERIOR DETERIORATION AND BUILDING CONSERVATION PROBLEMS -
roofs, gutters, exterior painting and other areas which are in poor condition but not
hazardous, which if corrected now will improve the neighborhood appearance and save
maintenance and repair costs.
4. COSMETIC PROBLEMS -- cosmetic improvements cannot be paid for with public
rehabilitation loan funds.
The Construction Manager will review the inspection report, identifying additional problems.
PREPARE A WORK LIST:
The Construction Manager will develop a detailed list of the work which will be done on your
home.
The Program Staff will review the Work List on what work can be financed with a rehab loan:
1. Health and safety hazards, immediate lead-based paint hazards and exterior building
deterioration should be corrected.
2. Cost-effective energy conservation work should be completed, if possible.
3. The majority of the rehabilitation costs should be spent in correcting health and safety
hazards and doing work which will reduce the long-term maintenance & operating costs of
your house.
4. Exterior deterioration should be corrected if possible. Modernization work is limited.
5. Improvement of the site and accessory buildings cannot exceed 10% of the project costs.
6. The cost of wood stoves cannot exceed 10% of the loan amount, unless it is the primary
source of heat.
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7. The cost of purchasing and installing wood stoves is limited to standard quality appliances
necessary for normal household operations.
8. The cost of cosmetic work to simply change the appearance of the building cannot be paid
for with public rehab loan funds.
9. The purchase of furniture, area rugs, carpet (except attached wall to wall carpet) CANNOT
be financed with a rehab loan.
10. The purchase or installation of non-essential or luxury items CANNOT be financed with a
rehab loan.
11. All manufacturers, including, but not limited to, Puget Sound Energy, Natural Gas and
product rebates from materials, fixtures and appliances installed in the rehabilitation will be
returned to the Home Rehabilitation Program and applied to the loan of the owner. If funds
are granted, the rebate will be recycled back into the Program and used as Program Income.
The final rehab plan Work List will be developed by the inspection report. Through adding to or
changing the Work List, the Construction Manager can develop a final plan which includes
EVERY WORK ITEM which will be done (replace front door hardware with new entrance
lockset and dead bolt lock, install bath fan, etc.). The plan needs to indicate the LOCATION of
each work item (northwest bedroom, east living room wall, etc.); and the QUALITY LEVEL
(panel door to match existing doors, etc.). The Construction Manager also needs to select and
indicate in the work list, where possible, the COLORS, PATTERNS, etc., for floor coverings,
light fixtures, paints.
The final Work List is the full listing of all the work to be done on your building. IF IT IS NOT
WRITTEN IN THE WORK LIST AND CONTRACT, THE WORK WILL NOT BE DONE.
E. SOLICITATION OF BIDS/CONTRACTOR SELECTION
Responsible: Construction Manager
In this step, the Construction Manager will select a contractor who will complete the work within
the available funds for the best value considering price, quality of work and ability to complete
the work within the time required. Utilization of one contractor under one contract for all the
work is the method preferred for completing the rehabilitation work. This method has been
selected because of the need for a fixed time limit for completing the rehabilitation of each
house. The Program Staff reserves the right to solicit additional contractors based upon
performance and/or availability of contractor. The Program Staff will solicit bids through an
annual procurement process. The program must review the selected bid and contractor to ensure
that a reasonable price will be paid and the selected contractor is licensed, bonded, and insured,
and able to satisfactorily complete the work. Since the rehabilitation process requires many
compromises to be made and results in personal inconveniences to the occupant, it is important
that the owner has a personal commitment to the contractor selected. The primary role of the
Program is to review the selected contractor for acceptability based on program standards and
requirements.
All work must be completed and contracted to a registered, insured, and bonded contractor. The
contractor must not be debarred from or listed on the Excluded Parties List System (EPLS),
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Federal debarment. The contractor must be an equal opportunity employer and reach out to
small, minority and women-owned subcontractors and suppliers.
1. The Construction Manager will determine that the bid is within the maximum approvable
loan amount, review the following items with the owner:
a. the final work list;
b. the final cost estimate;
c. instructions for soliciting bids;
d. bid/construction contract forms;
e. general conditions
f. general construction standards;
g. contractor's qualification statement forms; and
h. a compilation of bids.
2. The Construction Manager will solicit contractors annually by utilizing the MRSC Roster in
accordance with RCW 39.04.155.
LOAN PACKAGE
Responsible: Program Coordinator
This step consists of the formal loan application and the preparation of the legal loan documents.
The final loan review and approval is completed at this time.
1. Review the verifications, title information, household profiles, rehabilitation costs, estimate
of value, and maximum loan amount to verify the applicant's eligibility for a loan.
2. Review the loan costs (title costs, rehab costs, change order contingency amount up to 10%
of the initial rehab costs, taxes, insurance) and establish the maximum required loan amount
and completing a work list and cost estimate and a Loan Agreement (on housing rehab
loans). The actual amount distributed on a loan cannot exceed the Promissory Note amount
unless a full new loan package is prepared, a new loan review is completed, and a new loan
Promissory Note has been signed.
3. If the required loan amount and terms are not feasible within adopted program policies or
within limits, which could be recommended to the Program Director, return the bid to the
Construction Manager to make, with the assistance of the selected contractor, the necessary
work and cost reductions.
4. Compile the final documents, and review it with the Program Director. The documents
include:
a. the loan application;
b. title information;
b. verification of income; Using 24 CFR Part 5.609 method. Annual Income/WorkSheet;
d. house photographs;
e. final bid proposal;
f. compilation of bids, if applicable;
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g. after-rehab market analysis;
h. loan agreement with the final work list attached.
5. Program Director reviews all final loan packages for conformance with adopted program
policies and applicable laws and regulations and approves, revises or rejects the final
package.
6. Proceed with loan closing.
G. LOAN CLOSING
Responsible: Program Coordinator
This step is primarily a legal process, which must be completed in a careful and detailed manner.
The final loan preparation must be completed at this time, loan funds drawn down, loan closing
conducted and the rehabilitation contract awarded.
1. As soon as the loan is approved, schedule the loan settlement (schedule one hour to insure
that all questions can be answered) and complete the following items:
a. Order a title search to verify the ownership;
b. Prepare the loan documents -- a Disclosure Statement, a Promissory Note, Deed of
Trust , and a Notice of Opportunity to Rescind -- in conformance with final approved
loan amounts and terms; or prepare a Grant Agreement; and
c. Have the Construction Manager prepare the Schedule for Work Completion and
Progress Payment Inspection Form, if applicable.
2. On the scheduled closing date, conduct the loan closing:
a. Carefully explain and review with the owner and obtain the applicant(s)' signatures on
the Disclosure Statement, Loan Agreement, the Promissory Note, the Deed of Trust,
and the receipt of Notice of Opportunity to Rescind. Carefully explain that, if they
have concerns about the loan, they may put the loan on hold by returning the rescission
within 3 working days;
b. Provide the owner with a copy of the Disclosure Statement, Notice of Opportunity to
Rescind, Promissory Note and loan payment notification;
c. Review the status of the construction contract(s); and
3. Record the Deed of Trust upon completion of the home rehabilitation.
4. Make a copy of the following items for the file:
a. the inspection report;
b. the final work list;
c. site visit inspection forms; and
d. bid contract and Notice to Proceed.
H. CONTRACT EXECUTION AND NOTICE TO PROCEED
Responsible: Program Coordinator, Construction Manager
The requirements of the contract documents, the construction time frame and the responsibilities
of the various participants must be carefully reviewed at this stage. This review will reduce the
number of misconceptions, misunderstandings and conflicts which will occur in the construction
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process. The major concerns which must be reviewed with the contractor are the standards
which must be used in the work to qualify for a contract payment, how and when they get paid
and, how changes in the work are to be proposed and approved. The major concerns, which
must be reviewed with the owner, are the actual work to be completed, the time frame for the
work, how to prepare for and facilitate the contractor's work, and the owner's responsibility in
monitoring the work.
1. If the rehabilitation work includes complex code interpretations, schedule a building and
work review with the contractors, and appropriate agencies (Fire, Building, Planning, etc.).
2. As soon as the Schedule for Work Completion and Equal Opportunity Certification have
been filled out by the contractor and reviewed and approved by the owner and Construction
Manager, schedule a pre-construction conference with the contractor and the owner.
3. At the pre-construction conference, the owner, the contractor and the rehab specialist will:
a. Review the following items:
(1) The schedule for the contractor to be in the home;
(2) The contractor's access to the building;
(3) The occupancy during construction;
(4) When and what furniture needs to be moved;
(5) Storage of valuables;
(6) The selection of light fixtures, cabinets, floor coverings, paint colors and other
finish materials;
(7) The work to be completed and the construction standards;
(8) The conditions and times of loan draws and payments to the contractor;
(9) The need for permits and lien waivers; and
(10) The process for proposing and approving changes in the work.
b. Execute the Construction Contract, and attach the final work list and drawings;
c. Provide the contractor with Lien Release form;
d. Provide the owner with a copy of the Construction Contract.
4. Take photographs of the before rehab building conditions.
5. Make copies of the Schedule for Work Completion, the Bid/Contract and the Notice to
Proceed for the working files.
I. REHABILITATION WORK
Responsible: Contractor, Program Construction Manager
During this step, the primary responsibility of the Program Staff is to assure that the contracted
work has been performed according to the contract documents before loan draws are approved.
In addition, the Program Staff provides technical advice as needed by the owner or contractor.
To successfully resolve disputes between the owner and contractor, it is essential for the staff to
maintain the position of an objective third party who is utilizing the written contract documents
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to interpret the work requirements and standards. The Program Staff will become ineffective if
he/she becomes the personal advocate for the owner or contractor. The contract is between the
owner and contractor. The public program must assure that the funds are being properly utilized
to pay for the contracted work which has been performed to the program standards.
1. Provide advisory inspections to the owner and contractor on an as-needed basis. Fill-out a
site visit form unless the Schedule for Work Completion is being completed.
2. To process loan draws, the Construction Manager must:
a. Review the contractor's or supplier's invoice. The invoice should list his/her name and
address, the address of the rehabilitation project, the amount of work completed or
supplies provided, as of a specified date, and the amount of payment requested;
b. Inspect the work using the Work List which were prepared and approved before the
work began to verify the amount of work completed and the amount of the eligible
progress payment;
c. Verify that all required permits have been obtained before the first payment is
approved, and verify that only the final permit inspection remains before the 80% draw
is approved and 10% retention at all times until completion and satisfaction of Lien
Release;
d. Take photographs of the work in progress; and
e. Sign the appropriate inspection approval form and submit the draw request to the
finance department for payment approval as soon as the above conditions have been
satisfied.
3. To process a loan draw, the Program Coordinator must:
a. Verify that the Construction Manager has approved the draw for Work Completion;
b. Verify that the appropriate invoices have been received and adequate loan funds are
available; and
c. Before approving the first draw, verify that the Deed of Trust has been signed, and
adequate insurance is in place.
4. Have all loan draw checks made out to the borrower and supplier or contractor and attach
check stub to voucher for the loan file. Enter each draw on the checklist and wall chart.
5. Review all proposed changes in the Construction Contract and Work List. All changes must
be in writing or an approved Change Order form. The rehab specialist must review and
approve each change order for the appropriateness of the work and costs. All changes must
be processed by written Contract Change Order. Changes which would result in total loan
disbursements exceeding the Promissory Note amount cannot be approve unless a full new
loan package is prepared and the property owner signs a new Promissory Note and
Disclosure Statement for the revised loan amount.
6. On final inspection, complete an inspection if any work remains to be completed or
corrections are needed. When all work has been satisfactorily completed, fill out the Final
Inspection form . In completing the final inspection, review the original inspection report to
determine that all health and safety hazards have been eliminated, review the Construction
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Contract/Work List to determine that all contracted work has been completed and obtain
copies of all permits, showing final approval by the appropriate inspector and owner. Take
photographs of the completed project.
7. Review the contractor's final invoice, the complete the Lien Release. Submit the Final
Inspection form with the completed invoice to the finance department for processing the
final payment.
J. LOAN CLOSE OUT
Responsible: Program Coordinator
This is the clean-up step. The final accounting of loan funds and the owner's evaluation of the
program are the major items to be completed.
1. After all rehabilitation work has been completed and approved, review the final inspection
report(s), the contractor supplied and executed Lien Release.
2. Process the final draw of loan funds.
3. Unutilized loan funds shall be shown as a reduction in the outstanding principal amount of
the loan.
4. Review the loan file to insure that all final documents have been obtained:
a. the final inspection report;
b. change orders;
c. signed off permits;
d. lien waivers; and
e. the original executed Promissory Note and recorded Deed of Trust.
K. WALK AWAY POLICY
Responsible: Program Director, Program Coordinator, Construction Manager
Providing Rehabilitation Services in a safe and effective manner, without undue hazards to
household members, our staff, or contractors is the focus of creating the following “Walk Away
Procedures for Rehab Jobs”.
The following components may affect the completion of Rehab Services on your dwelling.
Structural conditions
Health and safety conditions
Miscellaneous conditions
Structural Conditions
Major foundation repair or replacement
Major plumbing repairs
Extensive door or window replacement
Major electrical repairs
1. Knob and tube replacement
2. Breaker panel replacement
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Major framing repairs
Broken roof trusses
Major repairs to ceilings, floors, walls
Health and Safety
Health and Safety issues are interrelated to structural issues on many occasions. The following
list represents several of those conditions that have been noted in the past. The list by no means
represents all unsafe conditions.
Rodent infestation (mice, rats, skunks, raccoons etc.).
Insect infestation (termites, roaches, hornets, etc.).
Dangerous animals
Unsanitary living conditions
Water and/or sewage backup (broken, disconnected pipes, poor drainage, etc.).
Unsafe storage of flammable or other dangerous materials (gasoline, propane, garbage,
etc.).
Carbon monoxide from heating sources or appliances that cannot be replaced.
Debris or odors left behind as a result of animals and/or humans.
Un-vented combustion space heaters and/or appliances.
Excessive mold
High level of asbestos
Miscellaneous
Every circumstance that justifies walking away cannot always be defined. The following list
identifies several of those conditions. This list by no means represents all conditions that may
warrant Housing Kitsap to deny applicant of services.
Owners attempting to use the program solely for improvement purposes.
Owner has not authorized rehabilitation of property.
Structure is scheduled for demolition or removal from property.
Structure is unfit for human habitation.
Structure is for sale.
Illegal activities or the suspicion of illegal activities including Illegal drugs, the use, sale,
or manufacturing of.
Property is currently vacant.
Inaccessibility or inadequate access.
Inappropriate storage (attic or crawl spaces being utilized for storage).
Cost of repairs is beyond scope of Rehabilitation program funding.
Domestic issues and/or the use/threat of violent or abusive behavior.
Not located within Housing Kitsap’s service territory.
Guidelines For Notification
In many situations all that may be needed is for the applicant/owner to have ample time to
correct
the deficiencies that have been identified by the Construction Manager. With that in
perspective, the following steps have been identified to help assist the parties involved with the
completion of rehabilitation services. This process will be identified as “Delay of Service
Notification”.
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1. Hazard(s) or condition(s) may be identified by any of the following individuals or agencies;
Energy Technician, Contractor, Property Owner, Utility Representative, or other
governmental agencies. Pictures (optional) and field notes will be placed in the job file for
further documentation or hazard(s).
2. Housing Kitsap will notify the property owner and or occupants involved of the hazard or
situation that requires the necessity to issue the “Delay of Service Notification”.
All parties involved will be notified.
This will include verbal confirmation and written at the time of property evaluation to all
parties involved.
L. LIMITED WARRANTY
Responsible: Construction Manager
The Contractor hereby guarantees the Owner the construction performed on that certain
structure to be free from defects in material and workmanship for a period of one year from the
date of commencement of use, substantial completion or date of notice of completion, whichever
is the first to occur:
This Limited Warranty applies and is limited as follows:
1. To the property only as long as it remains in the possession of the original Owner named
Above.
2. To the construction work that has not been subject to accident, misuse or abuse.
3. This Limited Warranty only applies to the workmanship and materials supplied and
performed by this contractor.
4. To the construction work that has not been modified, altered, defaced, or had repairs made
or
attempted by others.
5. That Contractor be immediately notified in writing within ten (10) days of first knowledge
of
defect by owner or his agent.
6. That Contractor shall be given first opportunity to make any repairs, replacements or
corrections to the defective construction at no cost to owner within a reasonable period of
time.
7. Under no circumstances shall contractor be liable by virtue of this warranty or otherwise for
damage to any person or property whatsoever for any special, indirect, secondary or
consequential damages of any nature however arising out of the use or inability to use
because of the construction defect.
M. LOAN PORTFOLIO MANAGEMENT
Responsible: Program Coordinator
I. Annual Loan Portfolio Review
a) Follow “CDBG Borrower Verification Process” flowchart, including:
Review of loan terms and conditions
Review of Assessor’s parcel search website
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Review of Auditor’s Public Records
Verification of taxpayer mailing address
Review of utilities records for site address
b) Determine outcomes of Annual Loan Portfolio review
1. Loan is Valid
Continue deferment
2. Borrower Default
Loan has expired, request write-off
3. Property Transfer or Change in Use – Loan due in full
Send Letter notification that loan is due in full
Borrower pays off loan via 1) Lump Sum or 2) Payment Plan
Consider foreclosure proceedings or collection agency if no response or cannot repay
II. Loan Modification Policy and Procedures for Defaulted Loans
a. Housing Kitsap will consider loan modification to extend deferment period for loans or to
establish a payment plan for borrowers who 1) reside full-time in the home for which the
loan was provided, and 2) qualify at 80% of area median income or less (based on HUD
guidelines) at the time modification is requested.
b. Housing Kitsap will consider loan modification to establish a payment plan for loans for
borrowers who 1) reside full-time in the home for which the loan was provided, and 2) earn
in excess of 80% of area median income (based on HUD guidelines) at the time
modification is requested.
III. Steps for Loan Modification
a. Continued Deferment:
Staff revises Promissory Note and Deed of Trust to reflect additional years of deferment
Additional deferment years are determined on a case by case basis
Borrower must agree to the changes and sign revised documents
Borrower must agree to pay the cost of recording and reconveyance fees for the revision,
either as cash or as an addition to the loan amount owed
Staff records revised Deed of Trust
Staff requests reconveyance on old Deed of Trust
b. Payment Plan:
Staff works with borrower to set up a payment plan acceptable to both parties
Staff revises Promissory Note and Deed of Trust to reflect years of deferment equal to the
length of the payment plan
Promissory Note to include terms of Payment Plan
Borrower must agree to the changes and sign revised documents
Borrower must agree to pay the cost of recording and reconveyance fees for the revision,
either as cash or as an addition to the loan amount owed
Staff records revised Deed of Trust
Staff requests reconveyance on old Deed of Trust
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Housing Kitsap issues an annual statement to borrower of amount owed after payments
are applied
If Borrower does not adhere to payment plan, loan defaults and Housing Kitsap may
begin foreclosure proceedings
IV. Policy and procedures for loan forgiveness and write-off
a. Loan Forgiveness
Applicable to loans that are 20 years or more and/or past recoverable period (statute of
limitations)
Must be approved via Board action
When applicable, staff will present loans for forgiveness annually for Board action to
forgive the loan(s), if any
Adjust Portfolio assets for financial reporting
Staff initiates reconveyance of title or Quit Claim Deed, collect reconveyance fee from
Borrower when possible
b. Loan Write-off
Applicable to defaulted loans
Staff will provide summary of defaulted loans (if any) to finance in end of year reporting
Adjust Portfolio assets for financial reporting
Loans that meet the 20 year obligations convert to grants and write off loans
c. Year-end report of accurate loan portfolio assets to finance
Listing of loans outstanding
Detail of payoffs, defaults, and forgiveness
Summary of activity and balances at 12/31
N. SUBORDINATION OF LOANS
Responsible: Program Coordinator and Program Director
The Home Rehabilitation Program may allow a debt which has priority, to take second position
behind another debt under the following conditions:
This loan is a rate reduction, no cash back to Borrower; Housing Kitsap will allow
reasonable closing costs as provided in HUD-1
Review Good Faith Estimate and HUD-1 Settlement Statement prior to closing and a
copy of the final HUD I Settlement Statement provided to this office upon closing
Lender to prepare subordination agreement
Copy of recorded subordination agreement
Copies of pay stubs, current tax return, and award letters of all household members
Housing Kitsap listed as second mortgagee with Homeowners Insurance
O. LOAN MODIFICATION
Responsible: Program Coordinator and Program Director
The Home Rehabilitation Program may modify loans terms and conditions to facilitate transfer
of ownership to family member if they meet the loan criteria for low income eligiblity
requirements.
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Page 216 of 221
City of Port Orchard
Council Meeting Minutes
Regular Meeting of February 8, 2022
1. CALL TO ORDER AND ROLL CALL
Mayor Putaansuu called the meeting to order at 6:30 p.m.
Roll call was taken by the City Clerk as follows:
Mayor Pro-Tem Lucarelli Absent
Councilmember Chang Present via Remote Access
Councilmember Clauson Present via Remote Access
Councilmember Cucciardi Present via Remote Access
Councilmember Diener Present via Remote Access
Councilmember Trenary Present via Remote Access
Councilmember Rosapepe Present via Remote Access
Mayor Putaansuu Present via Remote Access
Staff present via remote access: Public Works Director Dorsey, Utilities Manager J. Brown, Police
Chief M. Brown, Community Development Director Bond, City Attorney Archer, City Clerk Wallace
and Deputy City Clerk Floyd.
The meeting also streamed live on YouTube.
A. PLEDGE OF ALLEGIANCE
Mayor Putaansuu led the audience and Council in the Pledge of Allegiance.
2. APPROVAL OF AGENDA
MOTION: By Councilmember Trenary, seconded by Councilmember Cucciardi, to add the excusal of
Councilmember Lucarelli for personal reasons.
The motion carried.
MOTION: By Councilmember Cucciardi, seconded by Councilmember Rosapepe, to approve the
agenda as amended.
The motion carried.
3. CITIZENS COMMENTS
There were no citizen comments.
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Minutes of February 8, 2022
Page 2 of 5
4. CONSENT AGENDA
A. Approval of Voucher Nos. 83520 through 83543 and 83551 through 83583 including bank drafts
in the amount of $249,069.19 and EFT’s in the amount of $580,091.51 totaling $829,160.70.
B. Approval of Payroll Check Nos. 83544 through 83550 including bank drafts and EFT’s in the
amount of $213,201.98 and Direct Deposits in the amount of $202,818.10 totaling $416,020.08.
C. Adoption of an Ordinance Amending Port Orchard Municipal Code Chapter 10.12 Establishing
Regulations and Fees Related to Parking, Stopping or Standing in Certain Areas of the City
(Ordinance No. 003-22)
D. Adoption of a Resolution Authorizing the Purchase of a Vermeer BC-1000XL Woodchipper via DES
Contract No. 05218 (Resolution No. 018-22)
E. Approval of Amendment No. 1 to Contract No. 026-21 with Transportation Solutions for Third
Party Transportation Concurrency Review, Reimbursed by Developer Fees
F. Approval of Amendment No. 1 to Contract No. 028-21 with Transportation Solutions for On Call
Transportation/Traffic Engineering Services
G. Approval of the January 18, 2022, City Council Work Study Session Meeting Minutes
H. Approval of the January 25, 2022, City Council Meeting Minutes
I. New: Excusal of Councilmember Lucarelli from Tonight’s Meeting for Personal Reasons
MOTION: By Councilmember Clauson, seconded by Councilmember Rosapepe, to approve the
consent agenda as amended.
The motion carried.
5. PRESENTATION
There were no presentations.
6. PUBLIC HEARING
A. Petition to Vacate City Right-of-way, the Southern Portion of Opened Bay Street – Request to
Strike
City Clerk Wallace explained on January 11, 2022, Council adopted Resolution No. 009-22, setting a
public hearing tonight for a petition to vacate City right-of-way.
When preparing for the notices for the hearing, it was discovered that due to a calculation error
there was an insufficient amount of time for staff to prepare the noticing and posting to meet the
requirements of the Port Orchard Municipal Code, which requires public notice of the hearing no
less than 20 days in advance of the hearing.
Later on tonight’s agenda for the City Council’s consideration is a resolution re-setting the public
hearing for March 8, 2022. Staff is asking the Council not to hold this public hearing this evening.
Mayor Putaansuu noted we will not be holding this public hearing this evening.
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Minutes of February 8, 2022
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B. City of Port Orchard’s 2020 Water System Plan (2022 Adoption)
Mayor Putaansuu opened the public hearing, and there being no testimony, closed the public hearing
at 6:39 p.m.
7. BUSINESS ITEMS
A. Adoption of a Resolution Fixing the Date of a Public Hearing on a Petition to Vacate City Right-
of-way, the Southern Portion of Opened Bay Street
MOTION: By Councilmember Chang, seconded by Councilmember Clauson, to adopt a resolution re-
setting a Public Hearing for March 8, 2022, at 6:30 PM, on a petition from Walter and Roberta Huth
Trustees to vacate a portion of opened right-of-way, Bay Street.
The motion carried.
(Resolution No. 020-22)
B. Adoption of an Ordinance Adopting the 2020 Water System Plan (2022 Adoption)
MOTION: By Councilmember Diener seconded by Councilmember Chang, to adopt an ordinance
adopting the 2020 Water System Plan.
The motion carried.
(Ordinance No. 005-22)
C. Adoption of a Resolution Adopting the Port Orchard Parks, Recreation and Open Space (PROS)
Plan Dated January 31, 2022
MOTION: By Councilmember Diener, seconded by Councilmember Rosapepe, to adopt a resolution
adopting the 2022 Port Orchard Parks, Recreation, and Open Space Plan as presented.
Councilmember Clauson noted there are a couple things he had previously mentioned that he would
like changed. For example, Kitsap County is still listed as providing the South Kitsap Western Little
League. This should be the City of Port Orchard.
The motion carried.
(Resolution No. 021-22)
D. Approval of a Contract with Serotonin LLC for Public Relations, Marketing, and
Communications Consultant
MOTION: By Councilmember Diener, seconded by Councilmember Cucciardi, to approve a contract
with Serotonin, LLC for Public Relations, Marketing and Communications Consultant.
The motion carried.
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Minutes of February 8, 2022
Page 4 of 5
(Contract No. 036-22)
8. DISCUSSION ITEMS (No Action to be Taken)
A. Continued: Veterans Park
City Attorney Archer, Kitsap County Parks Director Alex Wisniewski, Kitsap County Director of Human
Services Doug Washburn, Anton Preisinger with Northwest Hospitality, Mayor, Council and staff
spoke to the ongoing issues, conditions, and future steps at the park which included garbage and
refuse, garbage services, dumpsters, property ownership at SE Mile Hill Drive, portable toilets and
damage, volunteers who help clean the park, health and safety concerns, fire hazards, Kitsap County
Parks Coordinator position, RV situation, Housing Solutions outreach team, Boise versus Martin
decision, services offered to the unhoused, available shelter beds, mental illness and disabilities of
the unhoused, working together to find a way to solve this issue, and requesting the County
Commissioners attend these discussions.
Council Direction: No direction was given to staff.
9. REPORTS OF COUNCIL COMMITTEES
Mayor Putaansuu reported the Economic Development and Tourism Committee is scheduled to
meet February 14th. The Utilities Committee is scheduled to meet February 16th. The Finance
Committee is scheduled to meet February 15th. The Transportation Committee is scheduled to meet
February 22nd. The Festival of Chimes and Lights is scheduled to meet February 22nd and the Land
Use Committee is scheduled to meet February 16th.
Councilmember Cucciardi spoke to working with staff on scheduling a meeting for the Lodging Tax
Advisory Committee.
A brief discussion was held regarding topics for the Council Retreat scheduled for March 11th.
10. REPORT OF MAYOR
The Mayor reported on the following:
• State’s transportation package.
In response to Mayor Putaansuu, Councilmember Clauson spoke to transportation funds received by
Kitsap Transit.
• In accordance with Ordinance No. 008-20, he reported on the revised job description for the
Human Resources Manager
11. REPORT OF DEPARTMENT HEADS
Police Chief Brown reported on new officers and the police academy.
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Minutes of February 8, 2022
Page 5 of 5
Community Development Director Bond reported on an email sent to Council asking for agenda
topics to discuss during the Land Use and Economic Development and Tourism Committee meetings.
Mayor Putaansuu reported the contracts with Kitsap Homes of Compassion and Housing Kitsap are
processing and he hopes to have them before Council at the end of the month. Also, discussed a
meeting regarding the complete streets project grant.
Public Works Director Dorsey reported on the splash pad and McCormick Village Park and the Bay
Street Pedestrian Path west situational study.
12. CITIZEN COMMENTS
Robert McGee spoke to the Washington Building Council and their proposals on the commercial
energy code, and voiced concerns with those proposals and policies.
Heidi Fenton voiced concerns with City Council meetings not being held in person and still being held
remotely.
13. GOOD OF THE ORDER
Councilmember Rosapepe spoke about the McCormick Village Park and splash pad, and how it was
great to see people using that park.
Councilmember Clauson spoke to funding for public transit and increased funding, and revenue
opportunities. He asked if City Attorney Archer could look at the proposed transportation funding
package and share her opinion on how the package might benefit the City if approved.
14. EXECUTIVE SESSION
There was no executive session.
15. ADJOURNMENT
The meeting adjourned at 8:07 p.m. No other action was taken. Audio/Visual was successful.
Brandy Wallace, MMC, City Clerk Robert Putaansuu, Mayor
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