HomeMy WebLinkAbout03/22/2022 - Regular - PacketCity of Port Orchard Council Meeting Agenda
March 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. Please keep your comments respectful and no personal attacks. This is a
comment period and not a question-and-answer session. 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.Approval of the March 8, 2022, City Council Meeting Minutes Page 3
5.PRESENTATION
6.PUBLIC HEARING
A.Draft Ordinance Amending Port Orchard Municipal Code Chapter 5.60
Fireworks (Bond) Page 8
7.BUSINESS ITEMS
Mayor:
Rob Putaansuu
Administrative Official
Councilmembers:
Mark Trenary
E/D & Tourism Committee, Chair
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, Chair
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.
March 22, 2022, Meeting Agenda Page 2 of 2
A.Adoption of an Ordinance Amending the 2021-2022 Biennial Budget (Crocker) Page 20
B.Adoption of a Resolution Approving a Contract with McCormick Communities, LLC Regarding Credits
for Water Capital Facility Charges (Bond) Page 25
C.Adoption of a Resolution Authorizing the Purchase of Kitsap County Tax Parcel No. 4027-022-001-0004
for the Bay Street Pedestrian Pathway Project (Dorsey) Page 42
D.Approval of Memorandums of Understanding with Teamsters Local 589 Representing Police Support
Staff, Municipal Court Employees and Public Works Employees (Lund) Page 72
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, the City Council may 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
Economic Development and
Tourism April 18, 2022; 9:30am; 3rd
City of Port Orchard
Council Meeting Minutes
Regular Meeting of March 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 Present via Remote Access
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, Police Chief Brown, Senior Planner
Fisk, City Attorney Archer, City Clerk Wallace and Deputy City Clerk Floyd.
The meeting also streamed live on YouTube.
A. PLEDGE OF ALLEGIANCE (Time Stamp: 0:00:29)
Mayor Putaansuu led the audience and Council in the Pledge of Allegiance.
2. APPROVAL OF AGENDA (Time Stamp: 0:00:57)
MOTION: By Councilmember Clauson, seconded by Councilmember Lucarelli, to approve the agenda
as published.
The motion carried.
3. CITIZENS COMMENTS (Time Stamp: 0:01:37)
There were no citizen comments.
4. CONSENT AGENDA (Time Stamp: 0:02:22)
A. Approval of Voucher Nos. 83673 through 83681 including bank drafts in the amount of
$135,916.76 and EFT’s in the amount of $905.62 totaling $136,822.38.
Page 3 of 72
Minutes of March 8, 2022
Page 2 of 5
B. Approval of Payroll Check Nos. 83682 through 83687 including bank drafts and EFT’s in the
amount of $218,222.75 and Direct Deposits in the amount of $203,743.74 totaling $421,966.49.
MOTION: By Councilmember Diener, seconded by Councilmember Clauson, to approve the consent
agenda.
The motion carried.
5. PRESENTATION
6. PUBLIC HEARING (Time Stamp: 0:02:57)
A. Petition to Vacate City Right-of-way, the Southern Portion of Opened Bay Street
Mayor Putaansuu opened the public hearing at 6:36 p.m.
Roberta Huth thanked Council for considering this matter and noted she is available should anyone
have any questions about a letter she submitted to the Council for consideration.
There being no more testimony, Mayor Putaansuu closed the public hearing at 6:38 p.m.
7. EXECUTIVE SESSION (Time Stamp: 0:08:10)
At 6:39, p.m., Mayor Putaansuu recessed the meeting for a 30-minute executive session pursuant to
RCW 42.30.110(1)(i) relating to legal risks of a proposed action where public discussion may have
adverse legal impacts to the City. City Attorney Archer and Public Works Director Dorsey were invited
to attend, and City Attorney Archer noted action will follow.
At 7:09 p.m., Mayor Putaansuu extended the executive session an additional 10-minutes.
At 7:19 p.m., Mayor Putaansuu reconvened the meeting back into session.
8. BUSINESS ITEMS (Time Stamp: 0:09:25)
A. Adoption of an Ordinance Approving the Petition to Vacate City Right-of-Way, the Southern
Portion of Opened Bay Street
City Attorney Archer explained the drafted ordinance does not reduce the appraised rate or waive
the fee, so the motion would need to include the stated amount of compensation sought. An
amendment would need to be made to add a section that states the Council agrees to waive the
appraisal and review fee if Council chooses to do so.
Page 4 of 72
Minutes of March 8, 2022
Page 3 of 5
MOTION: By Councilmember Clauson, seconded by Councilmember Rosapepe, to adopt an
ordinance, vacating 200 square feet of City right-of-way, the Southern portion of opened Bay Street
as presented, and adjusting Section 8 the appraisal vacation price to $9,500 and add a section to
waive the appraisal fee and review fee as requested.
The motion carried.
(Ordinance No. 010-22)
B. Approval of the 2022 Comprehensive Plan Amendment Docket
MOTION: By Councilmember Diener seconded by Councilmember Chang, to approve the 2022
Comprehensive Plan amendment agenda pursuant to POMC 20.04.060, as presented.
The motion carried.
C. Approval of Amendment No. 1 to Contract No. 001-22 with MurrySmith, Inc. for the 2022
On-Call/Modeling Update Services
MOTION: By Councilmember Lucarelli, seconded by Councilmember Clauson, to authorize the
Mayor to execute Amendment No. 1 to Contract No. C001-22 with Murraysmith, Inc. for 2022 On-
Call/Modeling Update Services for the City’s Water Systems, thereby increasing the budget authority
in the amount of $100,000, for a total amended contract amount of $180,000.
The motion carried.
D. Approval of the February 15, 2022, City Council Work Study Meeting Minutes
MOTION: By Councilmember Rosapepe, seconded by Councilmember Cucciardi, to approve the
minutes as presented.
The motion carried. Councilmember Clauson abstained.
E. Approval of the February 22, 2022, City Council Meeting Minutes
MOTION: By Councilmember Clauson, seconded by Councilmember Lucarelli, to approve the
minutes from the regular meeting of February 22nd.
The motion carried. Councilmembers Cucciardi and Diener abstained.
9. DISCUSSION ITEMS (No Action to be Taken) (Time Stamp: 0:32:45)
A. Continued: Veterans Park
Page 5 of 72
Minutes of March 8, 2022
Page 4 of 5
Mayor Putaansuu noted significant cleanup efforts by volunteers and a contract company within the
past couple days. He addressed concerns with the RV parking near Mile Hill Drive.
Additional discussion was held regarding photos taken by the code enforcement officer, clean-up
efforts, trash and garbage vendor, dumpsters, portable toilets, parked RV and expansion of items
and outreach, public health and safety issues, violations and vehicles parking within the County right-
of-way at north end of the park.
Council Direction: No direction was given to staff.
10. REPORTS OF COUNCIL COMMITTEES (Time Stamp: 0:42:12)
Mayor Putaansuu reported the Economic Development and Tourism Committee is scheduled to
meet March 14th [March 21st]. The Utilities Committee is scheduled to meet April 12th. The Finance
Committee was scheduled to meet March 15th, but the meeting will need to be rescheduled. The
Transportation Committee is scheduled to meet March 22nd. The Land Use Committee is scheduled
to meet March 16th. The Sewer Advisory Committee is scheduled to meet May 18th. The City Council
Retreat is scheduled for March 11th.
Councilmember Lucarelli reported the Festival of Chimes and Lights Committee is scheduled to meet
March 21st.
Councilmember Cucciardi reported the Lodging Tax Advisory Committee is scheduled to meet March
9th.
11. REPORT OF MAYOR (Time Stamp: 0:44:23)
The Mayor reported on the following:
• Fireworks survey;
• Community Events Center update and survey;
• Cancelation of the March 15th Work Study meeting due to lack of items; and
• In accordance with Ordinance 008-20 Delegating Authority to the Mayor for Creating and
Modification of Job Descriptions, he reported on job description updates for the Finance
Director.
12. REPORT OF DEPARTMENT HEADS (Time Stamp 0:46:22)
City Attorney Archer reported while she is out of the office, City Attorney Robertson will be available
for any Council questions.
City Clerk Wallace reported on special event applications and digital signatures.
Page 6 of 72
Minutes of March 8, 2022
Page 5 of 5
Police Chief Brown reported on new legislation related to police departments and awards to police
employees.
13. CITIZEN COMMENTS (Time Stamp: 0:49:49)
There were no citizen comments.
14. GOOD OF THE ORDER (Time Stamp: 0:50:36)
Councilmember Rosapepe spoke to inflation impacts.
15. EXECUTIVE SESSION
The executive session was held earlier in the meeting.
16. ADJOURNMENT
The meeting adjourned at 8:05 p.m. No other action was taken. Audio/Visual was successful.
Brandy Wallace, MMC, City Clerk Robert Putaansuu, Mayor
Page 7 of 72
City of Port Orchard
216 Prospect Street, Port Orchard, WA 98366
(360) 876-4407 • FAX (360) 895-9029
Agenda Staff Report
Summary: At the January City Council Work Study meeting, the City Council discussed possible amendments
to POMC 5.60 Fireworks and requested that City staff conduct public outreach and schedule a public hearing
on possible code amendments. On March 4, 2021 the City released an online survey seeking public input on
the possibility of prohibiting the sale and private use of fireworks within the city. At the same time, the city
published hearing notices in the newspaper and mailed notice to previous fireworks stand permittees.
The draft ordinance can be amended based on public feedback received. In addition, if the Ordinance goes
forward for adoption, the findings will be updated to capture the public feedback that is received and to
document the reasons for any changes.
Recommendation: City staff recommends that the City Council hold a public hearing on the draft ordinance
and continue that hearing to the April 12th City Council meeting. City Council should also provide City staff
with direction on any revisions to the draft ordinance or next steps.
Motion for consideration: N/A
Attachments: Draft Ordinance and Public comments.
Page 8 of 72
ORDINANCE NO. ________
AN ORDINANCE OF THE CITY OF PORT ORCHARD, WASHINGTON, RELATING TO
FIREWORKS; AMENDING CHAPTER 5.60 OF THE PORT ORCHARD MUNICIPAL
CODE (“POMC”), AND ESTABLISHING AN EFFECTIVE DATE.
WHEREAS, the State of Washington regulates the sale, discharge, and display of fireworks
under Chapter 70.77 RCW; and
WHEREAS, for many years the City and its elected officials have received numerous
complaints regarding the discharge of both legal and illegal fireworks; and
WHEREAS, the City Council believes that prohibiting fireworks, with a limited exception
for large-scale display shows subject to a City-issued permit, would enhance the health, safety,
and welfare of the public; and
[Insert additional findings once survey is complete]
WHEREAS, chapter 70.77 RCW authorizes cities to adopt fireworks ordinances that are more
restrictive than state law, but such ordinances may only become effective one year after their
adoption; now, therefore,
THE CITY COUNCIL OF THE CITY OF PORT ORCHARD, WASHINGTON, DO ORDAIN AS
FOLLOWS:
SECTION 1. Port Orchard Municipal Code 5.60.010 is hereby amended to read as follows
5.60.010 Permit and state license required – Fee Sales, possession, use, and
discharge of fireworks unlawful.
It is unlawful for any No person, firm or corporation shall to import, manufacture, transport
(except as a public carrier delivering to a licensee), possess, store, sell or offer to sell at retail or
wholesale or discharge fireworks inside the city limits of the city of Port Orchard ; provided, that
this prohibition shall not apply to duly authorized public displays. Any item of fireworks which
does not meet the State of Washington Fire Marshal’s approval in conformity with RCW Chapter
70.77, as amended shall be deemed dangerous and is prohibited by this chapter. without first
obtaining a permit from the city and a license from the state of Washington. The fee for obtaining
a city permit shall be $100.00 per year payable in advance.
SECTION 2. Port Orchard Municipal Code 5.60.015 is hereby amended to read as follows
Page 9 of 72
Ordinance No. _______
Page 2 of 5
5.60.015 Public display of fireworks Fireworks permits required – Forms and
deadlines.
(1) It is unlawful for any person to hold, conduct, or engage in any public display of
fireworks within the city without first having obtained and being the holder of a valid permit
under the provisions of this chapter.
(1) (2) Applications for permits required by this chapter shall be submitted in such form
and detail as prescribed by the Cityfire authority. A separate application shall be required for
each site and activity. Applications shall include, at a minimum:
(a) The application fee;
(b) Copy of appropriate state licenses;
(c) A site or discharge plan;
(d) The names, addresses and telephone numbers of the applicant(s) and responsible
party(ies); and
(e) When applicable, a description of the proposed activity detailing how it satisfies the
conditions set forth under POMC 5.60.020.
(2) (3) Permit applications shall be received by the DCD permit center for review by the
Cityfire authority:
(a) No later than 4:30 p.m. on the last official city work day in May for retail sales;
(b) No no later than 4:30 p.m. at least 40 business days prior to the date of an intended
public display; and
(c) Prior to commencing a permitted activity for all other uses.
(3) (4) Pursuant to RCW 70.77.280, the city council hereby designates the Director of the
Department of Community Development chief of the fire authority or his or her designee as the
person with the authority to grant or deny permits that are sought pursuant to this chapter.
(4) (5)Permits issued pursuant to this chapter are nontransferable.
SECTION 3. Port Orchard Municipal Code 5.60.020 is hereby amended to read as follows
5.60.020 Conditions for sales of fireworks and public display – Permit issuance.
Page 10 of 72
Ordinance No. _______
Page 3 of 5
A permit for the sale of fireworks or for public display of fireworks shall be issued only
upon the following terms and conditions:
(1) The applicant shall have a valid and subsisting license issued by the state of
Washington authorizing the holder thereof to engage in the fireworks business, a copy of which
shall be filed with the DCD permit center.
(2) For sales of fireworks, the applicant shall obtain a business license from the city.
(2)(3) The applicant shall have and keep in full force and effect a policy of insurance
approved by the city attorney saving the city harmless for any acts of the licensee in the following
amounts: $500,000 or more for injury to any one person in one accident or occurrence,
$1,000,000 for injury to more than one person for any one accident or occurrence, $300,000 for
injury to property in any one accident or occurrence. Proof of insurance coverage shall be
included with the application for a permit and shall be filed with the DCD permit center.
(4) For sales of fireworks, the location of the proposed place of business shall comply with
the zoning ordinances of the city.
(5) Applicant shall post a $50.00 deposit conditioned upon the prompt removal of the
temporary stand and/or the cleaning up of all debris from the site. If the applicant removes such
temporary stand and cleans up all the debris before the tenth day of July each year, he shall be
entitled to the return of his $50.00 deposit.
(3)(6) Public displays of fireworks shall comply with the provisions of RCW 70.77.280 in
that the fire authority shall determine whether the proposed display would pose a hazard to
property or a danger to persons. The fire authority shall prepare a written report detailing the
findings and recommendations for or against the issuance of the permit. The fire authority report
shall be filed with the DCD permit center.
SECTION 4. New Section 5.60.025 of the Port Orchard Municipal Code is hereby enacted
to read as follows
5.60.025 Permit Fees.
The annual fee for a “public display” permit for the public display of fireworks shall be
$100, payable in advance.
SECTION 5. Port Orchard Municipal Code 5.60.030 is hereby repealed.
SECTION 6. Port Orchard Municipal Code 5.60.040 is hereby repealed.
SECTION 7. Port Orchard Municipal Code 5.60.050 is hereby repealed.
Page 11 of 72
Ordinance No. _______
Page 4 of 5
SECTION 8. Port Orchard Municipal Code 5.60.055 is hereby amended to read as follows
5.60.055 Prohibition due to extreme fire danger.
The mayor, after consulting with athe fire authority, and other officials as may be deemed
appropriate, may prohibit the discharge of all fireworks during periods of extreme fire danger. In
addition, the city council may, after conducting a public hearing, adopt by resolution emergency
limitations or prohibitions on the sale of fireworks during periods of extreme fire danger. Such
emergency limitations or prohibitions shall be temporary and the reasons necessitating the
emergency limitations or prohibitions shall be clearly defined in the resolution.
SECTION 9. Ratification. All acts taken pursuant to the authority of this Ordinance but
prior to its effective date are hereby ratified.
SECTION 10. Severability. If any section, subsection, paragraph, sentence, clause, or
phrase of this ordinance is declared unconstitutional or invalid for any reason, such decision shall
not affect the validity of the remaining parts of this ordinance.
SECTION 11. Savings Clause. Those portions of Chapter 5.60 of the Port Orchard
Municipal Code which are repealed by this ordinance shall remain in force and effect until the
effective date of this ordinance. Such repeals shall not be construed as affecting any existing
right acquired under the laws repealed, nor as affecting any proceeding instituted thereunder,
nor any rule, regulation or order promulgated thereunder.
SECTION 12. Effective Date. This ordinance shall be in full force and effect twelve (12)
months 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 City Clerk in authentication of such passage this __ day of _______ 2022.
Robert Putaansuu, Mayor
ATTEST:
Brandy Rinearson, CMC, City Clerk
APPROVED AS TO FORM: SPONSORED BY:
Page 12 of 72
Ordinance No. _______
Page 5 of 5
Charlotte A. Archer, City Attorney Scott Diener, Councilmember
Page 13 of 72
From:cory holmberg
To:Planning Mailbox
Subject:Fireworks
Date:Thursday, March 10, 2022 11:06:53 AM
Good morning/ afternoon/ evening,
The Banning of fireworks inside Port Orchard City limits
To whom it may concern on this topic.
Let’s think and be logical and not think on this topic emotionally.
Limiting freedoms…
Is this something you, the City of Port Orchard really want to do? Something you want to do during a
pandemic where people are already stressed, wanting more things to do? Do you really want to incite a ban
on fireworks and not have it go through a vote of the people? (We have seen the public outrage on the tab
fee ordinance, people voted and the state did the opposite.)
Public Safety…
Instead of banning fireworks in the City of Port Orchard, the city should put out public safety flyers and or
have the stands put out flyers when selling to customers on how to do fireworks safely. The state has a
firework safety program through the WSP. Maybe you could ask them how they do it. I have attended a
meeting with the guy they have who is in charge of their firework safety program. He is very
knowledgeable and would say that he too would be against a ban.
Provided below is a link to one of the WSP informational pages on safety.
https://www.wsp.wa.gov/2021/07/01/fireworks-safety-tips-for-independence-day-celebrations/
I understand that some years are dryer then others. And those years you could use the emergency temporary
ban. But years where it’s not an issue. I do not see why this should be enacted.
Sending revenue to other towns/cities…
Let’s say you ban fireworks in Port Orchard. You, the City of Port Orchard are only hurting yourselves and
its local businesses. You are now going to send all of those potential firework customers to other
towns/city’s or the tribe to buy there fireworks. I would say most of these people are going to not just go
buy fireworks when they are going out to buy them in a different town. They will buy lunch or dinner out
(loss of revenue), they may do there grocery shopping in that town for convince while buying there
fireworks elsewhere (loss of revenue). Is the city really ok with losing revenue from the impact of banning
fireworks in the city of Port Orchard? Yes it’s only for a week, but that is a week of potential losses for the
city of Port Orchard to take. Banning fireworks will cause a domino effect. Again, this will only hurt the
City of Port Orchard and its businesses due to revenue losses.
Local groups and teams…
If you do ban them you are hurting local citizens. There are local citizens who go out on a limb to pre
purchase these fireworks to sell to the community. You would be sticking them with a huge amount of debt
Page 14 of 72
by doing this. Your stands like TNT, these stands are all ran by local youth groups to fundraise for their
groups and teams. A portion of their proceeds go towards these groups to help raise funds for stuff like new
gear, or fuel, etc. Stuff that they normally could not afford to do if they did not have this extra income. It is
one of the quickest and easiest ways for these groups to raise money for their organization. Banning
fireworks would be detrimental to these local groups.
They’re going to do it anyways whether you ban the sale and discharge or not.
No matter if you ban them or not, people are going to go buy there fireworks and discharge them. You do
not have a police force large enough to even police this. The state of WA has made sure of that. All that
banning fireworks will do is piss off more and more people. The state is already trying to pass through new
laws and or mandates restricting people’s freedoms. Do you want to be a local government who does the
same?
Here is an example for you. This is the state of California, in Los Angeles, where fireworks are also banned.
https://youtu.be/tIvdcdogC6k
Here is another example for those of you who have kids, this will make sense.
Your kid asks you (Mom) can I have a cookie. Mom says no. what does the kid do in return? Do they listen
to what Mom said? Probably not, what do they actually do? They go ask dad if they can have a cookie. Dad
being dad, of course you can have a cookie.
See where I’m going with this? Same concept applies to adults. You tell them no you can’t do that, they are
going to do the opposite of what you say. Especially when it comes to one of their freedoms.
I believe if you ban fireworks you will be receiving the inverse reaction to what you want. You are going to
make the dude who goes to the stand to buy 200$ worth want to go buy 500$ now. Just out of spite because
you decided to take away one of their freedoms. When you have stands in your local community you also
have more control over what fireworks come into your town. If you ban them, people are still going to do it,
most likely even more people, and those people are going to spend even more money buying them. Now
they will go to a different town to buy them or even the tribe (which carries some of the illegal fireworks in
our state.) By allowing fireworks to be sold in our town you are also limiting the amount of people who go
to the tribe to buy these fireworks. Most people don’t want to be bothered to go from Port Orchard all the
way to Tacoma or Suquamish to buy regular fireworks, but if you ban the sale of them in Port Orchard that
feeling of not wanting to travel to those places might just happen.
If you do for some reason decide to stick with the banning of consumer fireworks in Port Orchard, then I
would highly suggest making your 4th of julyshow on the waterfront a much bigger and extravagant show.
The city will need to help supplement this show. People want to see a good show. Have a good time. Be
with friends. By limiting yet another freedom that only happens once a year you are stripping away yet
another part of the community. A vast majority of our citizens love fireworks. Not all of them are ones to
set them off but most like to see them safely go off in the night sky and celebrate our nation’s independence.
I sincerely hope that you really hear the community and get them involved on this topic not just barely put
out any effort into notifying the community over it. Let’s get people involved and have the end result be
what’s best for the majority of its citizens not the few.
Thank you for hearing me out,
Cory
Page 15 of 72
From:Rob Putaansuu
To:Nick Bond
Cc:Brandy Wallace
Subject:FW: Fireworks Survey
Date:Sunday, March 13, 2022 10:15:16 AM
Nick, I believe you’re collecting the comments for our public process? If not let me know.
Rob Putaansuu
City of Port Orchard Mayor
Please be aware that e-mails which pertain to City business may be considered public records and may be
subject to public disclosure laws. If you think that you have received this e-mail message in error, please
notify the sender via e-mail or telephone at 360.876.4407.
From: M Neiner <mneiner@gmail.com>
Sent: Friday, March 11, 2022 7:36 PM
To: Rob Putaansuu <rputaansuu@cityofportorchard.us>
Subject: Fireworks Survey
Dear Mayor,
I recently took the survey.
The first question is problematic
-------------------------------------------
Do I support the City banning or restricting fireworks in the City?
-------------------------------------------------
The City already restricts / Bans the sale and use of fireworks to certain days and times of the year. I
support those current City ordinances. So I answered Yes.
This bounced me to a second question which I answered and the survey was over.
The survey never got to my concerns nor did it really address the new Total Ban.
Honestly, I am not opposed to a new Ban on sales and use. My concern is the impact on non
profits.
It's hard enough to raise money. Car washes , a once rather uncomplicated event, has evolved due
to environmental concerns. Not worth the effort. I think a robust discussion and understanding of
the impact to fund raising should be had before the city does the ban. If the City taketh away, what
are they doing to mitigate the impact.
Page 16 of 72
I recommend you take a look at that first survey question. It is posed as if the City doesn't restrict
fireworks already.
Respectfully
Mike Neiner
PORT ORCHARD.
Page 17 of 72
From:Nick Bond
To:Jenine Floyd
Subject:Fwd: Comments for Public Hearing on Fireworks Ordinance
Date:Wednesday, March 16, 2022 6:25:55 PM
Please add this comment to the packet on the fireworks issue.
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From: MARK BEECHER <markdbeecher@comcast.net>
Sent: Wednesday, March 16, 2022 6:25:00 PM
To: Planning Mailbox <Planning@cityofportorchard.us>; Shawn Cucciardi
<SCucciardi@cityofportorchard.us>; Jay Rosapepe <jrosapepe@cityofportorchard.us>; Scott Diener
<sdiener@cityofportorchard.us>; John Clauson <jclauson@cityofportorchard.us>; Cindy Lucarelli
<clucarelli@cityofportorchard.us>; Fred Chang <fchang@cityofportorchard.us>; Mark Trenary
<mtrenary@cityofportorchard.us>
Subject: Comments for Public Hearing on Fireworks Ordinance
To Port Orchard City Council,
I am writing regarding the upcoming city council meeting discussion about revisions to
Port Orchard Municipal Code Section 5.60. I would like to voice opposition to any
more restrictive laws regarding the sale and use of consumer fireworks. While I do not
currently live within Port Orchard City Limits, I frequent the area, and purchase my
fireworks from licensed retailers that operate within and around Port Orchard.
I support sensible and regulated use of all consumer fireworks. Restricting the sale
and/or use of consumer fireworks will drive retailers out of City limits, into areas of
Unincorporated Kitsap County or surrounding cities. This will have an obvious impact
on seasonal employment, potential tax revenue, as well as permit fees. Additionally, a
majority of the fireworks retailers are operated for non-profits and charity
organizations for fundraising.
According to WSP State Fire Marshall's Office (latest data available):
Approximately 1.5% of fires in our region (Region 1) over five years were caused by
explosives and fireworks (104 out of 6,627 total fires). This is less that the statewide
average (approximately 2.4%). This category includes non-fireworks explosive
devices, further reducing the number of firework-only fires.
Over 11% of the injuries last year were from illegal fireworks (27 of 237 total injuries).
There was a 2.7% decrease of fireworks-related incidents over the last year, and a
12% decrease in fireworks related injuries.
Kitsap county only accounted for 30 of the 537 fireworks related incidents from last
year (9 fires and 21 injuries, less than 6% of the statewide total).
This data reflects that the use of fireworks is generally safe, with a trend towards less
injuries and fires that previous years. This is despite the fact that prior to the last year
data was available, there were partial bans across much of our region due to
dry/hazardous conditions. This shows that responsible and safe fireworks use is
Page 18 of 72
obtainable without restricting the sale or use of consumer fireworks.
John Adam's suggested, of celebrating our nations independence, that "It ought to be
commemorated, as the Day of Deliverance by solemn Acts of Devotion to God
Almighty. It ought to be solemnized with Pomp and Parade, with Shews, Games,
Sports, Guns, Bells, Bonfires and Illuminations from one End of this Continent to the
other from this Time forward forever more." I support the sentiment of his writing. I
would encourage enforcement of the current laws, and focusing on educating the
public on safe fireworks use before any outright bans or restrictions were put into
place.
I would request that you not vote to make any existing laws regarding the sale and
use of consumer fireworks more restrictive than what the state currently allows.
Respectfully,
Mark Beecher
Page 19 of 72
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: March 22, 2022
Subject: Adoption of an Ordinance Prepared by: Noah D. Crocker
Amending the 2021-2022 Finance Director
Biennial Budget Atty Routing No: N/A
Atty Review Date: N/A
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.
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, Ordinance No. 007-22.
The proposed budget amendment is intended to provide the following:
1) Fund 109: Real Estate Excise Tax Fund
a. Increase transfer out to Fund 304 for the Bay Street Pedestrian Pathway ROW
acquisition in the amount of $125,000
b. Reduction of 2022 ending fund balance by $125,000 reflecting impact of the transfer
2) Fund 111: Impact Fee Fund
a. Increase revenue by $300,000 to account for school impact fee revenue estimated to be
received
b. Increase expenses by $300,000 to account for school impact fee revenue to be
remitted to the school district
3) Fund 304: Street Capital Projects
a. Increase transfers in from Fund 109 for the Bay Street Pedestrian Pathway project in the
amount of $125,000
b. Increase expenditure authority for the Bay Street Pedestrian Pathway ROW acquisition
in the amount of approximately $125,000
Recommendation: The Finance Director recommends adoption of an Ordinance amending the
2021–2022 Biennial Budget.
Relationship to Comprehensive Plan: 2020 Transportation Improvement Plan No. 1.2
Page 20 of 72
Staff Report 7A
Page 2 of 2
Motion for consideration: I move to adopt an ordinance, amending the 2021-2022 Biennial
Budget, as adopted by Ordinance No. 035-20 and as amended.
Fiscal Impact: See Table below
Alternatives: Do not authorize and provide alternative guidance
Attachments: Ordinance.
Fund: 109 - Real Estate Excise Tax
2021-2022 Current
(Amended Biennial
Budget No. 007.22)
2021-2022
Budget
Amendment
2021-2022 Amended
Biennial Budget No.
XXX-2022
Beginning Fund Balance 3,266,592$ -$ 3,266,592$
Revenue 2,927,400$ -$ 2,927,400$
Expense 2,427,200$ 125,000$ 2,552,200$
Ending Fund Balance 3,766,792$ (125,000)$ 3,641,792$
Fund: 111 - Impact Mitigation Fee
2021-2022 Current
(Amended Biennial
Budget No. 007.22)
2021-2022
Budget
Amendment
2021-2022 Amended
Biennial Budget No.
XXX-2022
Beginning Fund Balance 2,311,467$ -$ 2,311,467$
Revenue 1,695,000$ 300,000$ 1,995,000$
Expense 2,500,000$ 300,000$ 2,800,000$
Ending Fund Balance 1,506,467$ -$ 1,506,467$
Fund: 304 - Street Capital Projects
2021-2022 Current
(Amended Biennial
Budget No. 007.22)
2021-2022
Budget
Amendment
2021-2022 Amended
Biennial Budget No.
XXX-2022
Beginning Fund Balance 1,732,515$ -$ 1,732,515$
Revenue 6,046,333$ 125,000$ 6,171,333$
Expense 6,800,400$ 125,000$ 6,925,400$
Ending Fund Balance 978,448$ -$ 978,448$
Governmental
Capital Construction
Governmental Funds
(Operating, Stabilization, Special, Debt Service)
Page 21 of 72
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, 065-21 and 007-22 TO
RECOGNIZE EXPENDITURES AND REVENUES NOT ANTICIPATED
AT THE TIME OF THE ADOPTION OF THE 2021–2022 BIENNIAL
BUDGET; 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, 065-21 and 007-22; 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 entered into a interlocal agreement with the South Kitsap School
District No. CO35-22 to collect and remit impact fees to the school district of which additional
revenue and expenditure authority will be required for fund 111; and
WHEREAS, the City will transfer up to $125,000 from fund 109 to fund 304 for the Bay
Street Pedestrian Pathway Project and will spend the $125,000 additional funding on the Bay
Street Pedestrian Pathway Project for ROW acquisition; and
WHEREAS, the City will purchase right of way property and pay for relocation and
moving Benefit cost estimated at approximately $920,000 from Fund 304 for the Bay Street
Pedestrian Pathway Project; and
WHEREAS, the City Council has considered the proposed budget amendments and finds
that amendments authorized by this Ordinance are consistent with applicable laws and financial
policies, and further the public's health, safety and welfare; now, therefore,
THE CITY COUNCIL OF THE CITY OF PORT ORCHARD, WASHINGTON, DO ORDAIN AS
FOLLOWS:
Page 22 of 72
Ordinance No. ___
Page 2 of 3
SECTION 1. The 2021-2022 Biennial Budget and enabling Ordinance No.035-20, as
amended by Ordinances Nos. 15-21, 032-21, 050-21,056-21, 065-21 and 007-22 is hereby
amended to reflect the following:
Fund No. Fund Name Type Ordinance-035-20 Ordinance-050-21 Ordinance-056-21 Ordinance-007-22 Adjustment Ordinance-XXX-22
001 Current Expense Fund Revenue 26,069,100$ 33,279,201$ 35,529,201$ 35,529,201$ -$ 35,529,201$
Expense 26,069,100$ 33,279,201$ 35,529,201$ 35,529,201$ -$ 35,529,201$
002 City Street Revenue 5,131,900$ 7,601,171$ 7,601,171$ 7,601,171$ -$ 7,601,171$
Expense 5,131,900$ 7,601,171$ 7,601,171$ 7,601,171$ -$ 7,601,171$
003 Stabilization Revenue 2,300,000$ 2,693,687$ 2,693,687$ 2,693,687$ -$ 2,693,687$
Expense 2,300,000$ 2,693,687$ 2,693,687$ 2,693,687$ -$ 2,693,687$
103 Criminal Justice Revenue 760,900$ 869,508$ 869,508$ 869,508$ -$ 869,508$
Expense 760,900$ 869,508$ 869,508$ 869,508$ -$ 869,508$
104 Special Investigative Unit Revenue 102,000$ 105,797$ 105,797$ 105,797$ -$ 105,797$
Expense 102,000$ 105,797$ 105,797$ 105,797$ -$ 105,797$
107 Community Events Revenue 400,000$ 412,002$ 412,002$ 412,002$ -$ 412,002$
Expense 400,000$ 412,002$ 412,002$ 412,002$ -$ 412,002$
108 Paths & Trails Revenue 12,900$ 13,096$ 13,096$ 13,096$ -$ 13,096$
Expense 12,900$ 13,096$ 13,096$ 13,096$ -$ 13,096$
109 Real Estate Excise Tax Revenue 4,854,000$ 6,193,992$ 6,193,992$ 6,193,992$ -$ 6,193,992$
Expense 4,854,000$ 6,193,992$ 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$ 300,000$ 4,306,467$
Expense 2,282,500$ 4,006,467$ 4,006,467$ 4,006,467$ 300,000$ 4,306,467$
206 Bond Redemption Fund Revenue 598,200$ 598,200$ 598,200$ 598,200$ -$ 598,200$
Expense 598,200$ 598,200$ 598,200$ 598,200$ -$ 598,200$
302 Capital Construction Revenue 620,000$ 3,606,707$ 5,881,707$ 5,881,707$ -$ 5,881,707$
Expense 620,000$ 3,606,707$ 5,881,707$ 5,881,707$ -$ 5,881,707$
304 Street Capital Projects Revenue 4,328,100$ 7,278,848$ 7,278,848$ 7,778,848$ 125,000$ 7,903,848$
Expense 4,328,100$ 7,278,848$ 7,278,848$ 7,778,848$ 125,000$ 7,903,848$
411 Water - Operations Revenue 8,504,400$ 9,694,063$ 9,694,063$ 9,694,063$ -$ 9,694,063$
Expense 8,504,400$ 9,694,063$ 9,694,063$ 9,694,063$ -$ 9,694,063$
412 Water - Stabilization Revenue 917,000$ 950,216$ 950,216$ 950,216$ -$ 950,216$
Expense 917,000$ 950,216$ 950,216$ 950,216$ -$ 950,216$
413 Water - Capital Projects Revenue 6,964,200$ 7,419,754$ 7,419,754$ 6,519,754$ -$ 6,519,754$
Expense 6,964,200$ 7,419,754$ 7,419,754$ 6,519,754$ -$ 6,519,754$
414 Water - Debt Service Revenue 840,250$ 840,250$ 840,250$ 840,250$ -$ 840,250$
Expense 840,250$ 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$ -$ 5,352,120$
Expense 5,076,900$ 5,352,120$ 5,352,120$ 5,352,120$ -$ 5,352,120$
422 Storm Drainage -Stabilization Revenue 503,300$ 533,931$ 533,931$ 533,931$ -$ 533,931$
Expense 503,300$ 533,931$ 533,931$ 533,931$ -$ 533,931$
423 Storm Drainage -Capital Projects Revenue 30,100$ 99,113$ 99,113$ 99,113$ -$ 99,113$
Expense 30,100$ 99,113$ 99,113$ 99,113$ -$ 99,113$
424 Storm Drainage -Debt Service Revenue 355,300$ 355,300$ 355,300$ 355,300$ -$ 355,300$
Expense 355,300$ 355,300$ 355,300$ 355,300$ -$ 355,300$
431 Sewer - Operations Revenue 12,659,200$ 13,711,301$ 13,711,301$ 13,711,301$ -$ 13,711,301$
Expense 12,659,200$ 13,711,301$ 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$ -$ 1,422,016$
Expense 1,355,050$ 1,422,016$ 1,422,016$ 1,422,016$ -$ 1,422,016$
433 Sewer - Capital Projects Revenue 9,612,100$ 20,566,150$ 20,566,150$ 21,976,689$ -$ 21,976,689$
Expense 9,612,100$ 20,566,150$ 20,566,150$ 21,976,689$ -$ 21,976,689$
434 Sewer - Debt Service Revenue 550,000$ 550,000$ 550,000$ 550,000$ -$ 550,000$
Expense 550,000$ 550,000$ 550,000$ 550,000$ -$ 550,000$
500 ER&R Revenue 4,927,400$ 5,271,030$ 5,271,030$ 5,271,030$ -$ 5,271,030$
Expense 4,927,400$ 5,271,030$ 5,271,030$ 5,271,030$ -$ 5,271,030$
Grand Total Revenue 99,754,800$ 133,423,920$ 137,948,920$ 138,959,459$ 425,000$ 139,384,459$
Grand Total Expense 99,754,800$ 133,423,920$ 137,948,920$ 138,959,459$ 425,000$ 139,384,459$
2021-2022 Biennial Budget
SECTION 2. Transmittal. The City Clerk shall transmit a complete, certified copy of the
amended budget as adopted to the state auditor and to the Association of Washington Cities
per RCW 35.34.130.
Page 23 of 72
Ordinance No. ___
Page 3 of 3
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 March 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 24 of 72
City of Port Orchard
216 Prospect Street, Port Orchard, WA 98366
(360) 876-4407 • FAX (360) 895-9029
Agenda Staff Report
Summary: The City of Port Orchard’s municipal water system serves a majority of the McCormick Woods
and McCormick West areas, which are owned by McCormick Communities, LLC (“McCormick”). Due to a
variety of reasons, including a state Department of Ecology decision regarding water rights, the City has
been unable to provide water to these areas as agreed to in a 1998 contract according to the schedule
desired by McCormick. Therefore, McCormick desires to construct the public water service facilities
necessary to serve its future development in exchange for credits against the CFCs owed on future housing
development as authorized in POMC 13.04.030.
In the proposed agreement, McCormick would build 5 projects as follows:
a. CIP No. 9: Well 12 Development, Treatment, and Booster Pump Station ($7,000,000)
b. CIP No. 13: 390 to 580 Zone Booster Station, 2nd Lift (Glenwood) ($725,000)
c. CIP No. 14: 390 to 580 Zone Transmission Main (to Glenwood PS) ($515,624)
d. CIP No. 15: 580 to 660 Zone Booster Station; ($750,000)
e. CIP No. 16: 660 Zone Storage ($2,850,000)
Pending certification of construction costs, McCormick would receive up to $11,840,625 in total CFC credit
on 2,000 lots with the per ERU credit totaling $5,920. If the total spent on improvements is less than
$11,840,625, the credits would be extended to fewer lots. The per ERU credit is indexed to inflation as is
the City’s CFC charge.
Importantly, the agreement also includes a release from the obligations made by the city in the 1998
purchase and sale agreement for the McCormick Water system. As part of the consideration to the city
contained in this agreement, the city is considering two corresponding agreements to extend entitlements
at McCormick Woods and West.
McCormick has commenced work on the five CIP projects and has already expended approximately
$500,000 towards design and construction. Upon receiving documentation of expenditures, the granting of
CFC credits would commence, likely within 30 days after approval of the proposed agreement.
Page 25 of 72
Staff Report 7B
Page 2 of 2
Relationship to Comprehensive Plan: All 5 projects proposed for construction are identified in the
City’s Comprehensive Plan (and Water System Plan).
Recommendation: Staff recommends that the City Council authorize the Mayor to sign an Agreement
between the City of Port Orchard and McCormick Communities, LLC, regarding credits for capital
facility charges.
Motion for consideration: “I move to adopt a resolution authorizing the Mayor to sign an Agreement
between the City of Port Orchard and McCormick Communities, LLC, regarding credits for water capital
facility charges.”
Fiscal Impact: The proposed agreement will result in a private developer constructing 5 projects on
the city’s water CIP totaling approximately $11.840,625. This will save the City money by reducing risk
and removing construction management responsibilities for the 5 projects while allowing City staff to
advance other projects. The City’s existing CFC rates include the costs of the 5 projects and the City’s
CFC credit code allows the City to provide credits in circumstance such as these. If an agreement was
not reached, it would be the City’s responsibility to design and construct these 5 projects using CFC and
other funds. If the City built these projects, it would carry the risk associated with cost overruns.
Under the terms of the 1998 agreement, the City had made certain commitments to do work and is
being released from these liabilities under the new CFC agreement.
Alternatives: Revise the proposed Agreement; do not enter into an Agreement.
Attachments: Resolution, Agreement, Exhibit A to Agreement
Page 26 of 72
RESOLUTION NO. _____
A RESOLUTION OF THE CITY OF PORT ORCHARD AUTHORIZING THE MAYOR TO
EXECUTE A CAPITAL FACILITY FEE CREDIT AGREEMENT IN ACCORDANCE WITH
POMC 13.04.030 WITH MCCORMICK COMMUNITIES, L.L.C.
WHEREAS, the City of Port Orchard owns and operates a municipal water system that
services the area where McCormick Communities, LLC is developing a master planned housing
project (“the Project”); and
WHEREAS, in order to serve the Project, water infrastructure improvements are needed;
and
WHEREAS, these improvements consist of the following:
i. CIP No. 9: Well 12 Development, Treatment, and Booster Pump Station
($7,000,000)
ii. CIP No. 13: 390 to 580 Zone Booster Station, 2nd Lift (Glenwood)
($725,000)
iii. CIP No. 14: 390 to 580 Zone Transmission Main (to Glenwood PS)
($515,624)
iv. CIP No. 15: 580 to 660 Zone Booster Station; ($750,000)
v. CIP No. 16: 660 Zone Storage ($2,850,000); and
WHEREAS, the Developer of the Project is willing to install these water facilities which will
serve both the Project and the general public in the McCormick area; and
WHEREAS, the Port Orchard Municipal Code Section 13.04.030 allows the City to provide
a credit for Capital Facility Charges (CFC) for excess capacity provided when a developer builds
water projects; and
WHEREAS, ordinance 058-21 provided that development in McCormick Woods and
McCormick West would be eligible for credit regardless of whether excess capacity was provided
by the improvement; and
WHEREAS, the Developer is eligible to obtain CFC credits as set forth in POMC 13.04.030
for the 5 projects to be constructed as described in the CFC Credit Agreement; and
WHEREAS, the City Council finds it in the public interest to authorize the Mayor to execute
the proposed Capital Facility Charge Credit Agreement with McCormick Communities, L.L.C.
which is attached to this Resolution as Exhibit “1”; now, therefore,
Page 27 of 72
Resolution No. ___
Page 2 of 15
THE CITY COUNCIL OF THE CITY OF PORT ORCHARD, WASHINGTON, DOES HEREBY
RESOLVE AS FOLLOWS:
Section 1. Agreement Authorized. The Mayor is hereby authorized to execute Capital
Facility Charge Credit Agreement with McCormick Communities, L.L.C. in substantially the form
attached hereto as Exhibit “1”.
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 March 2022.
Robert Putaansuu, Mayor
ATTEST:
Brandy Wallace, MMC, City Clerk
Page 28 of 72
CREDIT AGREEMENT FOR CAPITAL FACILITY CHARGES
Page 1
1454988.19 - 366922 -0029FG:74353236.15
CREDIT AGREEMENT FOR CAPITAL FACILITY CHARGES
This CREDIT AGREEMENT FOR CAPITAL FACILITY CHARGES (“Credit
Agreement”) is entered into between the City of Port Orchard, a Washington municipal
corporation (“City” or “Port Orchard”) and McCormick Communities, LLC, a Washington limited
liability company (“McCormick”). City and McCormick are each a “Party” and together the
“Parties” to this Credit Agreement.
RECITALS
A. The City owns and operates a municipal water system that services the areas known as
McCormick Woods and McCormick West, which together comprise hundreds of acres of
land owned by McCormick as depicted in Exhibit A (the “McCormick Property”).
B. Many acres of the McCormick Property have received preliminary plat approval, and other
acres have received final plat approval, and McCormick has sold some of the resulting lots
to builders.
C. One area of the McCormick Property is served by the City of Bremerton water system, but
the majority of the McCormick Property is served by the McCormick Woods water system
which is owned and operated by the City of Port Orchard, and is within the area previously
served by the McCormick Water Company, Inc. On September 1, 1998 the City purchased
the assets of the McCormick Water Company, Inc. and undertook by contract the obligation
to serve the McCormick Property (“1998 PSA”).
D. On December 30, 2015 McCormick Communities, LLC purchased the assets of
McCormick Land Company and GEM1, LLC and assumed their obligations with certain
exceptions. These purchases included assignments of rights and interest to all entitlements,
including water and water rights as well as all claims. Therefore, McCormick is the only
remaining party (apart from the City) with an interest in the 1998 PSA.
E. Due to a variety of reasons, including the Foster v. Department of Ecology decision
regarding water rights, the City has been unable to provide water to the McCormick
Property as agreed-to in the 1998 PSA on the schedule desired by McCormick. If the City
could not timely provide these water services, then under the 1998 PSA McCormick has
the right to select a different purveyor to provide water service for future development.
Instead, McCormick desires to construct the additional public facilities needed to serve its
future development and the City agrees to provide credits for water connection fees as
reimbursement as authorized in POMC 13.04.030.
F. On July 10, 2007, Port Orchard and the prior owner of the McCormick Property, GEM 1,
LLC (“GEM”) entered into a REIMBURSEMENT AGREEMENT FOR UTILITY
SYSTEM IMPROVEMENTS (“2007 Agreement”), in which the City and GEM agreed
that the City was “unable to fund” the Water Facilities described and depicted in Exhibit
A to this 2007 Agreement, which were needed to serve the McCormick Property, and the
Page 29 of 72
CREDIT AGREEMENT FOR CAPITAL FACILITY CHARGES
Page 2
1454988.19 - 366922 -0029FG:74353236.15
City and GEM agreed that if GEM constructed these Water Facilities, GEM would receive
reimbursement as described in this 2007 Agreement.
G. GEM chose not to construct these Water Facilities, but the 2007 Agreement remains in
effect and McCormick as owner and developer of the McCormick Property is GEM’s
successor-in-interest to the 2007 Agreement.
H. On February 9, 2021 the City Council approved the FIRST AMENDMENT TO 2007
REIMBURSEMENT AGREEMENT FOR UTILITY SYSTEM IMPROVEMENTS
(“First Amendment”) in which the City and McCormick agreed to amend the list of projects
in the 2007 Agreement, and McCormick agreed to (1) improve the City’s Well 12 water
campus; (2) construct a new 580 zone reservoir up to 1.1 million gallons in size; (3)
construct a second transmission main between the new 580 zone reservoir and the then-
existing water system within McCormick Woods, in order to facilitate future separation of
the Port Orchard and Bremerton water systems; and to (4) drill and make operational a
pilot well at the proposed location of a new Well 12.
I. Pursuant to the First Amendment, the Parties also agreed to negotiate in good faith to enter
into subsequent agreements to (1) determine appropriate reimbursement for McCormick’s
Well 12 project; (2) address construction of a future 660 Zone reservoir and booster pump
station; (3) address construction of traffic improvements; (4) extend existing entitlements;
and (5) address full waiver of McCormick’s claims against the City and the parties’
agreement on satisfaction of performance under the 1998 PSA.
J. Pursuant to this First Amendment, McCormick is constructing these improvements to the
City’s water system at a cost of approximately $4 million, for which McCormick is
receiving $1,000 reimbursement per equivalent residential unit (“ERU”) that connects to
the City’s water system within the Western Service Area depicted in the 2007 Agreement.
McCormick expects to receive, over time, approximately $2.4 million in reimbursement
for up to 2,400 lots within the Western Service Area, resulting in a shortfall in
reimbursement of at least $1.6 million in addition to the shortfall from the time value of
McCormick’s $2.8 million investment.
K. At least five additional improvements to the City’s water system are needed to enable the
City to serve the McCormick Property. The City has included these five additional
improvements in the current Capital Improvement Plan that the City Council adopted by
Ordinance No. 022-21 on May 11, 2021. These improvements, hereinafter described as
the “Five CIP Projects” are listed below, together with the estimated cost of the
improvement to be funded by capital facility charges (“CFCs”):
a. CIP No. 9: Well 12 Development, Treatment, and Booster Pump Station
($7,000,000)
b. CIP No. 13: 390 to 580 Zone Booster Station, 2 nd Lift (Glenwood) ($725,000)
c. CIP No. 14: 390 to 580 Zone Transmission Main (to Glenwood PS) ($515,624)
d. CIP No. 15: 580 to 660 Zone Booster Station; ($750,000)
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e. CIP No. 16: 660 Zone Storage ($2,850,000)
L. The current CIP estimates the total CFC-funded cost of these Five CIP Projects to be
$11,840,625.
M. The Five CIP Projects must be constructed in order for the City to supply water to the
McCormick Property as agreed-to in the 1998 PSA between the City and the McCormick
Water Company.
N. In addition, approval of water rights for Well 12 and the City’s Well 11 projects are needed
in order to provide adequate water supplies for McCormick’s development and the City at
large. The City is working diligently as part of the Foster pilot program to secure these
water rights. However, whether these water rights are ultimately secured and on what
schedule will be determined by the Department of Ecology.
O. These Five CIP Projects will enable the City to serve not only the McCormick Property,
but also existing and future development outside the McCormick Property. The 660 Zone
Storage (CIP No. 16), together with the 580 Zone Storage that McCormick is constructing
pursuant to the First Amendment, will increase the City’s total water storage capacity by
50% in all pressure zones. The 660 Zone Storage will be located at one of the highest
elevations in the City, which will enable this storage, together with the transmission
facilities being constructed by McCormick, to serve the entire City in the event of shortfalls
in water supply or storage in other areas of the City.
P. Both the 580 and the 660 zone water Storage being constructed by McCormick are sized
to serve areas outside of the McCormick Property, and to serve all future growth in the 580
pressure zone. Without these improvements, only a limited number of new homes could
be constructed in the McCormick Property or in any of the other properties in the 580-
pressure zone unless Port Orchard and Bremerton enter into an updated agreement for Port
Orchard to buy additional water supplies for an extended period.
Q. The drilling and activation of Well 12 will provide added supply to the City’s current 580
pressure zone so that Port Orchard will no longer need to purchase water from the City of
Bremerton. This will enable Port Orchard, together with its activation of Well 11, to
separate its water system from Bremerton’s, so that Port Orchard can manage its water
quality policy (e.g., provide fluoridation) independently.
R. In anticipation of execution of this Credit Agreement, McCormick has commenced work
on the Five CIP Projects and at the time of execution of this Credit Agreement has
expended approximately $400,000 towards design and construction and has provided
certified project costs to establish these expenditures to the City prior to the effective date
of this Agreement.
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S. In order for the City to fulfill its obligations to provide water to the McCormick Property
under the 1998 PSA, and in order for McCormick to continue to develop its property, the
City and McCormick agree as follows:
AGREEMENT
1. Reaffirmation of Prior Agreements. The City and McCormick affirm that the First
Amendment to 2007 Reimbursement Agreement for Utility System Improvements remains
in effect, as do the un-amended sections of the 2007 Reimbursement Agreement.
2. McCormick Performance of Five CIP Projects. McCormick will finance and construct
the Five CIP Projects described in Recital K, as described in the Summary of Improvements
attached to this Credit Agreement. The Parties recognize and agree that McCormick’s
scope of work and this Summary of Improvements may change as these Projects are
engineered, and such changes will be discussed with the City, and, if approved, will be
reflected in future CIPs.
Water CFC Credit. As partial compensation, McCormick will receive credit against water
CFCs for each ERU developed within the McCormick Property. This credit shall be a
specific dollar amount which will reflect the CFC-funded costs of the Five CIP Projects,
divided by the number of ERUs that McCormick is expected to develop within the
McCormick Property (2,000). At the time of this Agreement, the current CIP estimates the
total CFC-funded cost of these Five CIP Projects to be $11,840,625, so the Water CFC
Credit shall be $5,920:
Maximum Eligible Project (Five CIP Project Total Costs) $ 11,840,625
Eligible ERU’s (McCormick Property) 2,000
Water Capital Facility Charge Credit per ERU $ 5,920
This credit per ERU of $5,920 shall be adjusted each year in accordance with the CPI-U
referenced in POMC 13.04.065, and also if the City amends its water capital facilities
charge and adjusts the cost estimates for any of the 5 CIP Projects described in recital K
above as part of that future capital facilities charge amendment.
Estimated Maximum Water CFC Credit. The maximum amount for the Water CFC
Credit shall be the lesser of $11,840,625, as adjusted per this Section 2, or the certified
project cost established in Section 11, whichever is lower (hereinafter “Maximum Water
CFC Credit”). In no case shall the Maximum Water CFC Credits granted by the City
exceed $11,840,625 as adjusted per this section.
Water CFC Credits per ERU will be applied up to the Maximum Water Credit Value for
the 20-year terms described in Section 6 below, or until the Maximum Water Credit Value
is fully exhausted, whichever occurs first. The final credit applicant may receive partial
credit depending on the Maximum Water Credit Value remaining.
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The Maximum Water CFC Credit hereunder is an estimate only based on the CIP project
cost estimates. The Parties will determine the final Maximum Water CFC Credit in
accordance with the certification procedures set forth in Section 11. If the certified costs
are less than $11,840,625, then the fixed credit will still be applied but only to the extent
needed to capture the Maximum Water CFC Credit, i.e., the ERU water credits provided
will never exceed the certified project costs. This means that some of the 2,000 estimated
ERUs may receive partial or no Water CFC Credit so that the total credits do not exceed
either the certified project costs or Maximum CFC Credit, whichever is less.
3. Value of Projects. McCormick and the City anticipate that McCormick will construct the
Five CIP Projects within the next five years (although drilling of Well 12 may take longer
because the City needs to first secure water rights under the Foster program), but
McCormick will receive the anticipated credit per ERU over the next 20 years. When the
$11,840,625 invested by McCormick in the Five CIP Projects is adjusted for the time value
of money over 20 years, the additional financing cost to McCormick is between $1,933,991
and $2,544,900, depending on the rate at which new ERUs are developed. While this
financing cost is not reimbursable under this CFC Credit Agreement, it presents significant
public benefit to the City and constitutes consideration both for the City entering into this
Agreement, and for new or amended Development Agreements to extend the existing
preliminary plat approvals within the McCormick Property, so that sufficient ERUs remain
available to provide the credits needed to defray a meaningful percentage of the costs of
financing and building the Five CIP Projects.
4. Other Agreements. The consideration for this Agreement includes the subsequent
execution by the City and McCormick of amendments to the following agreements to
extend for twenty years the periods of preliminary plat approval of two of the subdivisions
within the McCormick Property that create the lots whose development will create the
ERUs for which the City will charge CFCs:
a. Annexation Agreement No. 085-11, McCormick West, recording number
201112190136; and
b. Development Agreement for McCormick Woods Phases III, IV, and V Preliminary
Plats, recording number 201309160217;
5. Project Performance Standards. McCormick will finance, design, and construct the Five
CIP Projects to comply with City and other applicable standards, including obtaining all
necessary permits. This includes, as applicable, review and approval by the Washington
State Department of Health, Office of Drinking Water. The City will approve the plans
before construction begins.
6. Effective date; term; concurrency. This Credit Agreement is effective immediately upon
its execution and shall continue for the 20-year terms of the Annexation Agreement and
the Development Agreement being amended pursuant to Section 4 above. The Water CFC
Credits shall be applied to connections within the McCormick Property and such credits
shall continue to be available up to the cumulative amount certified in the initial or annual
report(s) plus the value of any posted bond, provided that McCormick continues to make
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timely progress on the Five CIP Projects, including providing the City with the annual
reports as set forth in Section 7 below. The development of 2,000 ERUs within the
McCormick Property is expected to be concurrent with the City’s water system so long as
the Five CIP Projects are developed as set forth in this Agreement, including the City’s
obtaining additional adequate water supply along with the related water rights under Foster
from Well 11, Well 12 and/or Well 13 to serve these ERUs. Assuming these conditions
are met, the City will reserve water capacity for these 2,000 ERUs. Approval of this
Agreement by the City Council is equivalent to issuance of a capacity reservation
certificate (CRC) under POMC Chapter 20.180. The capacity reservation shall expire if
this Agreement is not subsequently executed by the Mayor, and once executed, the capacity
reservation will expire with this Agreement.
7. Annual Reporting; Bonding. McCormick shall by December of each year provide a
report, signed, and stamped by a licensed engineer and accompanied by supporting
documentation, to the City demonstrating the approximate ongoing total of its investment
in the Five CIP Projects, together with the approximate total of credits per ERU received
within the McCormick Property. In addition, at any time of the year, McCormick may
submit project-specific reports, signed, and stamped by a licensed engineer and
accompanied by supporting documentation, to the City at the conclusion of each of the
Five CIP Projects in order to commence the completion process outlined in Section 9. As
each of the Five Projects is commenced, McCormick’s shall post a bond for completion of
that project in order to secure its completion and transfer to the City. This shall be required
in order to have Water CFC Credits apply in accordance with this Agreement. For purposes
of this section, “commenced” means commencement of construction. However, the costs
of such bond(s) may be included in the Maximum Water CFC Credit calculation, provided
however, that the Maximum Water CFC Credit in no case may exceed $11,840,625. Bonds
may be released for each of the Five Projects in accordance with the requirements for
project completion contained in POMC 13.04.030. At no time shall the total CFC credits
being issued exceed the then balance of the certified project costs plus the value of any
bond that is then in place.
8. McCormick Shall Grant Property Rights to the City. All intellectual data, including but
not limited to engineering work, surveys, plan sets, and designs initiated by McCormick
and its engineers and/or consultants for the Five CIP Projects shall be provided to the City
upon request and McCormick will provide the City with ownership rights in the intellectual
data so that if McCormick fails to complete any of the Projects, the City will have all of
the rights necessary to utilize the intellectual data in order to complete the work. In
addition, McCormick agrees that for any real property where any portion of any of the Five
CIP Projects is located that is not in currently the City’s ownership at the time this
Agreement is executed, that McCormick will provide property rights to the City, in the
form of an easement or dedication, that will provide the City all of the rights necessary to
enter and utilize that property in perpetuity for the purposes of owning, operating,
maintaining, improving, expanding, or constructing water facilities. These property rights
shall be provided to the City no later than the time period described in Section 11 below,
however, if McCormick fails to complete the Project(s) in accordance with this Agreement,
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McCormick will be required to promptly transfer the property rights to the City upon its
default or abandonment of work on the Project(s).
9. Completion of Five CIP Projects. With the exception of the Well 12 Project which may
be delayed due to water rights issues, McCormick agrees that it will complete the Five CIP
Projects within five (5) years of the execution date of this Agreement. The City shall
diligently pursue water rights for Well 12, and McCormick shall complete Well 12 within
this five-year performance period, or within twenty-four (24) months of the granting of the
required water rights, whichever period is longer. Upon completion of each of the Five CIP
Projects as outlined hereunder, the City may accept responsibility for the operation in
accordance with POMC 13.04.030 provided construction is completed, the Project has
been accepted, any transfer of property documents are completed, accepted, and recorded,
and a two-year warranty and maintenance bond is in place, such acceptance not to be
unreasonably conditioned, withheld or denied. In accordance with POMC 13.04.030(6),
the Project will be deemed completed when all of the following occurs: 1. The City deems
it substantially complete; 2. All punch list items are finished; 3. The improvement passes
final inspection; 4. McCormick has put a two-year warranty and maintenance bond in
place; 5. The City releases the performance bond (if applicable); 6. McCormick has
completed all property dedications; 7. McCormick has provided the City with a Bill of Sale
for the improvements containing the certified construction costs (stamped by licensed
engineer) to the City for determination of the maximum credits available under this
Agreement; and 8. The City Council accepts the project as public. The City will confirm
completeness of the CIP Project by issuing a Final Notice of Completeness to McCormick.
10. Force Majeure. Notwithstanding anything to the contrary in this Agreement, any
prevention, delay or stoppage due to strikes, lockouts, labor disputes, acts of God, acts of
war, terrorist acts, inability to obtain services, labor, or materials or reasonable substitutes
therefor, governmental actions, governmental laws, regulations or restrictions, civil
commotions, Casualty, actual or threatened public health emergency (including, without
limitation, epidemic, pandemic, famine, disease, plague, quarantine, and other significant
public health risk), governmental edicts, actions, declarations or quarantines by a
governmental entity or health organization (including, without limitation, any shelter-in-
place orders, stay at home orders or any restrictions on travel related thereto, breaches in
cybersecurity, and other causes beyond the reasonable control of the party obligated to
perform, regardless of whether such other causes are (i) foreseeable or unforeseeable or (ii)
related to the specifically enumerated events in this paragraph (collectively, a "Force
Majeure"), shall excuse the performance of such party for a period equal to any such
prevention, delay or stoppage. To the extent this Agreement specifies a time period for
performance of an obligation of either party, that time period shall be extended by the
period of any delay in such party's performance caused by a Force Majeure. Provided
however, that the current COVID-19 pandemic shall not be considered a Force Majeure
unless constraints on a Party’s performance that result from the pandemic become
substantially more onerous after the effective date of this Agreement.
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11. Certification of Project Costs. Upon completion of each of the Five CIP Projects as
described in Section 11 above, McCormick shall submit certified project costs to the City
for review and acceptance by the City Engineer. Once these costs and the executed Bill of
Sale are reviewed and accepted by the City Engineer, not to be unreasonably withheld,
conditioned, or delayed, the Maximum Water CFC Credit due to McCormick will be
established and will equal the Maximum Water CFC Credit as so certified in accordance
with this Section 11. If the Maximum Water CFC Credit due is less than the certified
project costs of the Five CIP Projects, then the City will continue to apply the $5,920 credit
(as adjusted by CPI-U) until the Maximum Water CFC Credit is reached, or this Agreement
expires, whichever occurs first. McCormick acknowledges that this may result in some of
the 2,000 ERUs receiving no (or a partial) CFC credit as the full reimbursement is reached.
12. Satisfaction of 1998 PSA. The Parties recognize and agree that this Agreement
substantially satisfies the City’s obligations under the September 1, 1998 Agreement for
Purchase and Sale of Assets of McCormick Water Company, Inc. The Parties further agree
that at such time as the work described in Recital “K” is completed in accordance with the
Agreement, whether Well 12 is completed or not, that the City’s obligation under the 1998
will be fully satisfied, provided that the City continues to provide the CFC credits
consistent with this Agreement. Furthermore, having assumed the position of MLC/GEM1
under the 1998 PSA, McCormick has the sole right to determine that the City’s obligations
have been satisfied. When the work in Recital K, excluding Well 12, is complete,
McCormick agrees that it will have no remaining claim(s) against the City for failure to
perform under the 1998 PSA. To the extent any such claim(s) remain, McCormick
intentionally and irrevocably waives its rights to pursue such claim(s).
13. Default. Subject to extensions of time by mutual consent in writing, failure, or delay by
either Party to perform any term or provision of this Agreement shall constitute a default.
In the event of alleged default or breach of any terms or conditions of this Agreement, the
Party alleging such default or breach shall give the other Party not less than thirty (30)
days’ notice in writing, specifying the nature of the alleged default and the manner in which
said default may be cured. During this thirty (30) day period, the Party charged shall not
be considered in default for purposes of termination or institution of legal proceedings.
After notice and expiration of the thirty (30) day period, if such default has not been cured
or is not being diligently cured in the manner set forth in the notice, the other Party to this
Agreement may, at its option, institute legal proceedings pursuant to this Agreement.
14. Reimbursement for Agreement Expenses of the City. McCormick agrees to reimburse
the City for actual expenses incurred over and above fees paid by McCormick as an
applicant incurred by City directly relating to this Agreement, including recording fees,
publishing fees, attorneys’ fees, and reasonable staff and consultant costs not otherwise
included within application fees. Such payment shall be made in full prior the Mayor
executing the Agreement on behalf of the City. Upon payment of all expenses, the
Developer may request written acknowledgement of all fees. Such payment of all fees shall
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be paid, at the latest, within thirty (30) days from the City’s presentation of a written
statement of charges to McCormick.
15. Non-Waiver of Breach. The failure of a Party to insist upon strict performance of any of
the covenants and agreements contained herein, or to exercise any option herein conferred
in one or more instances shall not be construed to be a waiver or relinquishment of said
covenants, agreements, or options, and the same shall be and remain in full force and effect.
16. Conflict. In the event of any conflict between this Agreement and POMC 13.04.030, this
Agreement shall control.
17. Resolution of Disputes and Governing Law. If any dispute arises between the City and
McCormick under any of the provisions of this Credit Agreement, jurisdiction of any
resulting litigation shall be filed in Kitsap County Superior Court, Kitsap County,
Washington. This Agreement shall be governed by and construed in accordance with the
laws of the State of Washington. The non-prevailing party in any action brought to enforce
this Agreement shall pay the other parties' expenses and reasonable attorney's fees.
18. Written Notice. All written communications regarding enforcement or alleged breach of
this Credit Agreement shall be sent to the parties at the addresses listed below, unless
notified to the contrary. Unless otherwise specified, any written notice hereunder shall
become effective upon the date of both emailing and mailing by registered or certified mail,
and shall be deemed sufficiently given if sent to the addressee at the address stated below:
McCORMICK: CITY:
Eric Campbell
12332 NE 115th Place
Kirkland, WA 98033
eric@mspgroupllc.com
Nick Tosti
805 Kirkland Avenue, Suite 200
Kirkland, WA 98033
Rob Putaansuu, Mayor
City of Port Orchard
216 Prospect Street
Port Orchard WA 98366
rputaansuu@cityofportorchard.us
A copy shall also be transmitted to the City
Clerk at the above address.
19. Assignment. Before completion of the Five CIP Projects, any assignment of this Credit
Agreement by McCormick without the written consent of the City, which shall not
unreasonably be withheld, shall be void. McCormick may assign this Credit Agreement
after completion of the Five CIP Projects by giving written notice of assignment to the
City.
20. Modification. No waiver, alteration, or modification of any of the provisions of this Credit
Agreement shall be binding unless in writing and signed by a duly authorized
representative of the City and McCormick.
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STATE OF WASHINGTON )
) ss.
COUNTY OF KITSAP )
I certify that I know or have satisfactory evidence that Mr. Rob Putaansuu is the person
who appeared before me, and said person acknowledged that he signed this instrument, on oath
stated that he was authorized to execute the instrument and acknowledged it as the Mayor of Port
Orchard to be the free and voluntary act of such party for the uses and purposes mentioned in the
instrument.
Dated: 20
(print or type name)
NOTARY PUBLIC in and for the
State of Washington, residing at:
My Commission expires:
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EXHIBIT A
McCormick Properties
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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: The City’s Right of Way Acquisition and Relocation Consultant, Tierra Right of Way Services,
Ltd., in conjunction with the City, identified Kitsap County Tax Parcel No. 4027-022-001-0004 (the
“Property”) as a necessary acquisition for the Bay Street Pedestrian Pathway Project. Accordingly, the
consultant has negotiated terms of a voluntary purchase of the Property, as well as associated relocation
benefits in accordance with Resolution No. 028-16 (Right-of-Way Acquisition Procedures) and the City’s
Relocation Assistance Program. On February 7, 2022, the Public Works Director executed the
Concurrence and Authorized for Payments of Just Compensation for the purchase of Kitsap County Tax
Parcel No. 4027-022-001-0004 (the “Property”) in the amount of $516,000.00, subject to Council
approval of the purchase. Additionally, on March 2, 2022, the Public Works Director executed the Price
Differential Report and Relocation Assistance Voucher No. 1 in the total amount of $386,118.03 (aka
Relocation Housing Payment) and the Move Expense Agreement Residential and Relocation Assistance
Voucher No. 2 in the amount of $5,000.00 (aka Moving Benefit Payment.) Please note: all expenditures
associated with the Bay Street Pedestrian Pathway Project have been identified within the Project
Funding Estimate (PFE) and are Grant eligible.
Relationship to Comprehensive Plan: Chapter 8 – Transportation.
Recommendation: For the Haynes Property Acquisition and as needed for the Bay Street Pedestrian
Pathway Project, Staff recommends that the City Council authorize the following:
1. The Mayor’s execution of a) the Real Estate Purchase and Sale Agreement in the amount of
$516,000.00, b) the Warranty Deed, c) the Real Property Voucher d) the Real Estate Excise Tax
Affidavit form and e) payment of the additional associated closing costs-escrow fees in the
amount of $4,889.25 for a Total Acquisition Payment of 520,899.25
2. Approve the Relocation Payment in the amount of $ $386,118.03
3. Approve the Moving Benefit Payment in the amount of $5,000.00
4. Approve any additional associated closing costs-escrow fees as needed
Motion for Consideration: I move to adopt Resolution No. 028-22, authorizing the purchase of Kitsap
County Tax Parcel No. 4027-022-001-0004 for the Bay Street Pedestrian Pathway Project in the Total
Acquisition Payment of $520,899.25 plus the Relocation Payment in the amount of $386,118.03, the
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Staff Report 7C
Page 2 of 2
Moving Benefit Payment in the amount of $5,000.00 and any additional associated closing costs-escrow
fees as needed, and authorizing the Mayor to execute all documents necessary to effectuate this
acquisition and relocation.
Fiscal Impact: Grant and Local Match funding for this acquisition expenditure is allocated within the
Project Funding Estimate (PFE) for the Project and the 2021-2022 Biennial Budget.
Alternatives: None.
Attachments: Resolution No. 028-22
Haynes – Tierra Transmittal
Haynes – Offer Letter
Pertinent Portions of the Right-of-Way Plan
Haynes - Real Estate Purchase and Sale Agreement
Haynes - Warranty Deed
Haynes - Real Property Voucher
Haynes - Escrow Agreement
Haynes – Utility Service Provider Contact Sheet
Haynes - Real Estate Excise Tax Affidavit
Haynes - Price Differential Report
Haynes - Relocation Assistance Voucher No. 1
Haynes - Move Expense Agreement - Residential
Haynes - Relocation Assistance Voucher No. 2
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RESOLUTION NO. 028-22
A RESOLUTION OF THE CITY OF PORT ORCHARD, WASHINGTON, AUTHORIZING
THE PURCHASE OF KITSAP COUNTY TAX PARCEL NO. 4027-022-001-0004 FOR
BAY STREET PEDESTRIAN PATHWAY PROJECT, AND AUTHORIZING THE MAYOR
TO EXECUTE ALL NECESSARY DOCUMENTS TO EFFECTUATE PURCHASE.
WHEREAS, the City has identified the need to acquire real property to support the
construction of the Bay Street Pedestrian Pathway Project (the “Project”); and
WHEREAS, in accordance with the City’s Relocation Assistance Program, the City’s
consulting Relocation Agent, Tierra Right of Way Services, Ltd., has negotiated the terms of
purchase by the City of real property located at 1699 Bay Street, Kitsap County Tax Parcel No.
4027-022-001-0004 (the “Property”); and
WHEREAS, Tierra has identified the requisite relocation assistance benefits owing to the
owner of the Property, and staff has reviewed and approved those determinations, in
conjunction with the Washington State Department of Transportation, Local Programs, serving
as Contract Administrator for the Project; and
WHEREAS, the Port Orchard City Council finds it is in the best interest of the City to
authorize the acquisition of the Property for fair market value and authorize all associated
relocation payments consistent with the City’s Relocation Assistance Program; 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 City Council authorizes the acquisition of Kitsap County Tax Parcel 4027-022-
001-0004 For Bay Street Pedestrian Pathway in the Total Acquisition Payment of
$520,899.25 and authorizes the Mayor to execute all necessary documents to effectuate
the purchase, including but not limited to: a) the Real Estate Purchase and Sale
Agreement, b) the Warranty Deed, c) the Real Property Voucher and d) the Real Estate
Excise Tax Affidavit form.
THAT: The City Council authorizes and ratifies the Relocation Payment in the amount of
$386,118.03, pursuant to the Relocation Assistance Program; and
THAT: The City Council authorizes and ratifies the Moving Benefit Payment in the
amount of $5,000.00, pursuant to the Relocation Assistance Program; and
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Resolution No. 028-22
Page 2 of 2
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 March 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: The City pays its employees bi-weekly or 26 times a year. This means that twice a year City
employees receive 3 paychecks in a single month. As part of the 2022-2025 contract negotiations, the
parties agreed to move all payroll deductions to 2 times per month. Specifically, in Appendix B language
was included that the deductions would occur in the 1st and last paychecks of each month. For the 3
paycheck months, payroll prefers deductions to be in the 2nd and 3rd paychecks of the month, rather
than 1st and last paychecks . As this is a change to contract language already approved by the City Council,
an MOU with the three bargaining units is required to make this correction.
Recommendation: Staff recommends the City Council authorize the Mayor to sign a Memorandum of
Understanding (MOU) with each of the three bargaining units represented by Teamsters Local No. 589
to correct language in Appendix B of the collective bargaining agreements regarding payroll deductions
in three paycheck months.
Relationship to Comprehensive Plan: N/A
Motion for consideration: “I move to authorize the Mayor to sign MOU’s with each of the three
bargaining units represented by Teamsters Local No. 589 to correct language in Appendix B of the
collective bargaining agreements regarding payroll deductions in three paycheck months.”
Fiscal Impact: None.
Alternatives: Do not approve the MOU and provide alternative guidance.
Attachments: The MOU’s under consideration tonight are not public documents until approved by
Council and signed by the parties; it is, therefore, not attached.
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