09/19/2023 - Work Study - PacketJ ..
IYuh ,
Mayor:
Rob Putaansuu
Administrative Official
Councilmembers:
MarkTrenary (Mayor Pro-Tempore)
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 Rosa pepe
Finance Committee,
Land Use Committee
KRCC, PSRC-alt, PSRCTranspol-alt, KRCC Transpol
alt, KRCC Planpol-alt,
John Clauson
Finance Committee, Chair
Utilities/Sewer Advisory Committee
Kitsap Public Health District-alt
Cindy Lucarelli
Festival of Chimes & Lights Committee, Chair
Utilities/Sewer Advisory Committee, Chair
Kitsap Economic Development Alliance
Scott Diener
Land Use Committee, Chair
Transportation Committee
Department Directors:
Nicholas Bond, AICP
Development Director
Denis Ryan
Public Works Director
Tim Drury
Municipal Court Judge
Noah Crocker, M.B.A.
Finance Director
Matt Brown
Police Chief
Brandy Wallace, MIMIC, CPRO
City Clerk
Meeting Location:
Council Chambers, V Floor
216 Prospect Street
Port Orchard, WA 98366
Contact us:
(360) 876-4407
cityhall@portorchardwa.gov
City of Port Orchard Council Work Study Session
September 19, 2023
6:30 p.m.
Pursuant to the Open Public Meetings Act, the City Council is conducting its
public meeting in the Council Chambers at City Hall. Members of the public may
view and provide public comment during the meeting in person at City Hall, via
the online platform zoom (link below), or via telephone (number below). The
public may also view the meeting live on the City's YouTube channel.
Remote access
Zoom Link: https://us02web.zoom.us/i/84859998382
Zoom Webinar ID: 848 5999 8382
Zoom Call -In: 1 253 215 8782
Guiding Principles
• Are we raising the bar?
• Are we honoring the past, but not living in the past?
• Are we building connections with outside partners?
• Is the decision -making process positively impacting diversity, equity, and
inclusion?
CALL TO ORDER
Pledge of Allegiance
1. Multi -Family Tax Exemption (Bond) Page 2
Estimated Time: 60 minutes
2. Limited Tax General Obligation (LTGO) Bond Delegation Ordinance
(Crocker) Page 42
Estimated Time: 30 minutes
3. Council Policy Regarding Bond/Levy Endorsements (Archer) Page 66
Estimated Time: 15 minutes
4. Orchard Street Plaza Concepts (Mayor) Page 76
Estimated Time: 15 minutes
Good of the Order
Please turn off cell phones during meeting and hold your questions for staff until the meeting has been adjourned
Meeting materials are available on the City's website: www.portorchardwa.gov or by contacting the City Clerk's Office, 360.876.4407
The City of Port Orchard does not discriminate on the basis of disability. Contact the City Clerk's office should you need special accommodations.
Back to Agenda
Issue Title
City of Port Orchard
Work Study Session Executive Summary
Multi -Family Tax Exemption
Meeting Date: September 19, 2023
Time Required: 60 Minutes
Attendees: Nicholas Bond, AICP
Action Requested at this Meeting: Discuss the Housing Action Plan, Staff, and Land Use Committee
recommendations for the City's MFTE program.
Issue: State law has provided authority for cities to offer multi -family tax exemptions since 1995
pursuant to RCW 84.14. Since 2016, the City has offered a multi -family tax exemption program to
incentivize the production of multi -family housing types. The City's adopted Multifamily Tax Exemption
(MFTE) program exempts certain new, converted or rehabilitated multifamily developments from ad
valorem property taxation (i.e. improvements to vacant land, or to existing buildings) for either eight or
12 years from issuance of the certification of exemption, depending on whether a project will include at
least 20% affordable housing. As explained in a recent Department of Commerce report linked below,
the program works (and impacts the city and junior taxing districts) in one of two ways, depending on
the practices of the County Assessor. It is staff's understanding that in Kitsap County, the assessor
applies a property tax shift as described in the report from the Department of Commerce.
https://deptofcommerce.app.box.com/s/9gg7p2ebm467ddpmblc5u3d4ei22csln
Since 2016, the legislature has revised and expanded the MFTE statute providing cities with more tools
to encourage the construction of multi -family housing and affordable housing. In addition, the City
completed a Housing Action Plan (HAP) in June 2023 which looked at these tools and the City's program
and provided recommendations for consideration. The Land -Use Committee discussed the MFTE
program in 2022 and recently at their July 2023 meeting and thus far, there is no consensus for next
steps, other than not to proceed with a few recommendations from the HAP that the Committee felt
should not advance at this time. The Land Use Committee recommended a discussion of the issue with
the full City Council.
Background: The MFTE program, as authorized in state law, was designed to address the shortage of
housing, including affordable housing units, and to meet the growing demand for housing in urban
centers. The program works by increasing housing supply and in Port Orchard, it is likely having a
positive impact to slow or reverse the rate of rising rents. Since 2016, the City has seen a boom in
apartment construction. In this time, the City has approved five MFTE agreements for projects that will
provide 442 residential apartments. Of the MFTE approvals, two of the projects accounting for 97 units
reserved 20% of units as affordable housing. Recent data received in an appraisal report showed that in
Q4 of 2022, market rents in our area decreased for the first time in a decade, by about 3.8%. While
rents have increased significantly overall during the past decade, we are seeing for the first time that the
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increase in housing supply may be starting to stabilize and even reduce rents in Port Orchard. If Port
Orchard and our region continues to add population without building additional housing supply, rents
will certainly continue to increase due to increasing demand for housing.
Since 2016, Port Orchard has seen 521 multi -family housing units constructed. Another 656 units are
currently under construction and 497 units are in review for permitting or have been approved but are
not yet under construction. This additional construction is likely to stabilize or even reduce rents in Port
Orchard in the near term. The projects are also benefitting the City through the payment of one-time
development fees including traffic impact fees, park impact fees, water capital facility charges, sewer
general facility fee chargers as well as by contributing to the City's REET and sales tax revenues. These
revenues allow the City to make investment in infrastructure improvements. Projects like the Bethel
Road Corridor Improvements, the Marina Sewer Lift Station, the Community Event Center, and
Downtown Waterfront Plaza are partially funded using these revenues from new growth.
Every project is unique in terms of the costs of development. Some multi -family projects being
constructed are being built without MFTE incentives while others are receiving the incentive. It is likely
that some of the projects in permitting would not be economically viable without the incentive, while
others do not require the incentive because the site development costs, or other factors are low. In
many cases, developers are required to construct offsite public utility or road improvements as a
condition of permitting, saving the City money in the long run.
The City has been studying its MFTE program for over a year. Previous efforts to amend Port Orchard
Municipal Code (POMC) Chapter 3.48 were put on hold pending changes being considered by the
legislature and pending the preparation of a HAP for Port Orchard. The City's HAP was completed in
June of 2023. Section 5.1 of the Housing Action Plan provides an overview of the City's existing program
along with recommendations for future consideration.
https://Portorchardwa.gov/housing-action-plan/
The alternatives section of this staff report describes the suggested changes as found in the HAP well as
changes proposed by City staff.
Alternatives: Due to the varying opinions and concerns about the MFTE program, the City Council
should first decide whether it wants to continue with the program at all. If the City Council wishes to
retain the program, a discussion should occur about the purpose of the program and the types of tax
exemptions that should be available. If certain exemptions are to continue, there needs to be a
discussion of where the exemption should apply within the City. Finally, there are other
recommendations in the HAP that should be discussed including height bonuses, how affordable units
are distributed in a project, and other minor amendments.
1. Affordable Housing (with transit access). The City's code currently provides a Type 1 Exemption
that applies to projects which provide 20% of the units within the project as affordable housing.
Under the existing program, the Type 1 Exemption has a term of 12 years and at the end of the
term, the units may revert to market rate rents. Rents are required to be 10% below market
rent and are reserved for households below specific income levels depending on the unit type
(1-bed, 2-bed, etc.). Prior to preparing the HAP, the Land Use Committee discussed minor
changes to this section that would have reduced the rents on affordable units to be 20% to 25%
below market rate. Market rent data can be viewed here:
https://www.huduser.gov/portal/datasets/fmr.html#year2023
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Subsequent to discussions with the Land Use Committee, changes to state law have been made
to allow an extension to existing 12-year tax exemptions to preserve affordable housing units as
well as a new 20-year exemption that is available for projects that provide permanent
affordable housing.
In July 2023, the Land Use Committee indicated that they did not want to pursue either of these
new options in state law due to the complexity of administering the affordable housing tax
exemption but did suggest that these options be discussed with the full City Council. It should
be noted that the existing affordable housing tax exemption is the most staff intensive of the
MFTE types due to the tracking and reporting requirements associated with the program. The
HAP in section 3.3 suggested that the City consider adding a Housing Coordinator position in
part to administer the affordable housing tax exemption.
2. Redevelopment Areas. When the City initially launched the MFTE program, there were
numerous underutilized or vacant commercial buildings in Port Orchard. The City wanted to
offer a no -strings attached eight -year tax exemption to encourage redevelopment. Economic
conditions in Port Orchard have changed somewhat since then, but there are still some blighted
or underutilized areas of the city that could benefit from this incentive.
3. Mixed -Use Development (with structured parking or transfer of development rights). The HAP
contains numerous recommendations for how to amend the Type 3 Exemption due to the
complexity of how the City is targeting mixed -use development.
a. Use Minimum Density. The HAP correctly points out that development at 40-50 units
per net acre by default must provide structured parking. At the building heights
available in Port Orchard, a site cannot provide this number of units without providing
structured parking. This Type 3 mixed -use exemption currently in POMC 3.48 includes
much more complicated to administer standards requiring that a percentage of parking
be within the footprint of the building or requires participation in a height bonus
program, or participation in the never used Transfer of Development Rights program.
b. Target incentive in downtown and mixed -use centers. In previous discussions with the
Land Use Committee, there has been discussion of limiting the mixed -use exemption to
projects located in downtown or possibly the Ruby Creek neighborhood - areas where
mixed -use shop front type buildings are desired. However, a minimum density
requirement that makes garden apartments (with surface parking) ineligible for the
incentive could be used in more areas of the city because of the benefits that a project
with this density provides to the city. It would discourage more garden apartments and
encourage both multi -family and mixed -use projects that reduce surface parking.
c. Reduce (or eliminate) the requirement that a percentage of the building be dedicated
to commercial use. Instead, the HAP suggests that a minimum percentage of the
project be commercial frontage. This would be more suitable for irregularly shaped
sites with limited commercial frontage that may not be as viable for commercial
development.
4. Middle Housing Tax Exemption. The City's existing program is limited to projects containing 10
or more units of housing. A key takeaway from the HAP is the need to encourage middle
housing types which are often smaller scale projects. The City may want to create a middle -
housing MFTE incentive. Middle housing projects are typically built at lower densities than
those projects described in Section 3, but don't utilize shared parking lots. Staff recommends
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that a new type of middle housing MFTE incentive be created to apply to fourplexes, townhome
projects, cottage housing, and other residential infill projects containing fewer than 12 units.
This could be widely available and would help make the construction of these missing middle
housing types more attractive to developers. The incentive could be made widely available in
most residential areas.
S. Other Suggested Amendments: The HAP contains a variety of other recommendations
described below. In addition, there are a few requested map changes from developers as well
as some staff recommended amendments to the MFTE Chapter.
a. Defining Urban Centers. RCW 84.14 requires that MFTE programs be limited to Urban
Centers. Urban Centers are defined as:
"Urban center" means a compact identifiable district where urban residents
may obtain a variety of products and services. An urban center must contain:
(a) Several existing or previous, or both, business establishments that
may include but are not limited to shops, offices, banks, restaurants,
governmental agencies;
(b) Adequate public facilities including streets, sidewalks, lighting,
transit, domestic water, and sanitary sewer systems; and
(c) A mixture of uses and activities that may include housing, recreation,
and cultural activities in association with either commercial or office, or
both, use.
The City has chosen to further define Urban Centers under the Type 1, 2, and 3 MFTE
exemptions as only being allowed in centers as designated in the Comprehensive Plan.
This action has had the effect of further restricting the locations where MFTE is
available. In many instances, the City's center boundaries have been designated to
meet rigid criteria for transportation funding from the Puget Sound Regional Council
rather than logical locations for more intense development or areas that meet the state
definition of Urban Center. Staff recommends that the reference to centers as
designated in the Comprehensive Plan be removed from POMC 3.48 and that the City
instead rely solely on the state's definition of Urban Center.
Consider Height Bonuses for MFTE projects. The City's HAP includes a recommendation that the City
consider providing height bonuses for projects that qualify for MFTE. This recommendation has the
potential to increase project density and the supply of affordable housing but may conflict with various
overlay districts that have been adopted. The Land Use Committee discussed this recommendation and
indicated that they preferred to refrain from taking this action at this time but that the full City Council
should discuss the recommendation. Staff recommends that the City Council not pursue this
recommendation at this time due to numerous other code sections to be reviewed in conjunction with
such a change. Staff does see value in exploring this topic as part of a future separate action.
Recommendations: Based on the alternatives presented in this report and if the City Council wishes to
retain an MFTE program, staff is recommending that the following changes be made:
Type 1. Staff recommends that the City Council retain the 12-year multi -family tax -exemption
but forego adopting changes in response to state law concerning the extension of existing 12-
year tax exemptions and forego the 20-year exemption. The 20-year exemption may be worth
discussing in the future if there is interest in developing a housing project that provides
permanent affordable housing, but thus far there is no demand for this tool from developers in
Port Orchard. The City has time to study and discuss whether and how to extend its existing 12-
year MFTE projects as the first of these certificates does not expire until 2028. In addition, staff
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would recommend increasing the affordability threshold from 10% to 20% below fair market
rents to provide tenants in affordable units with greater cost savings. Consistent with the HAP,
staff also recommends expanding the locations where this tool is available within the city and to
remove the transit proximity requirement for this tax exemption option.
2. Type 2. Staff would recommend that the Council (via the Land Use Committee) review the level
2 tax exemption map and consider removing properties that it no longer seeks to have
redeveloped and to consider additions in select areas such as locations where code violations
are present. Consistent with recommendations of the HAP, the definition of underutilized
buildings should also be corrected.
3. Type 3. For the Type 3 exemption, staff recommends that the City go to a minimum density
standard for eligibility and abandon the current menu of options for determining eligibility.
4. Type 4 (new). Staff recommends that the City Council create a new Type 4 exemption that
provides an eight -year benefit to middle housing projects containing 12 or fewer units in most
or all residential areas of the city. The Council (possibly via the land use committee) should
develop a new map for Type 4 exemptions.
5. Other Amendments.
a. Staff recommends that the City Council reduce the minimum project size for MFTE
eligibility from 10 units to 4 units to make the program available for middle housing
types and smaller scale projects.
b. The requirement that MFTE only be offered in centers designated in the Comprehensive
Plan should be removed.
The City Council should provide guidance to staff to either prepare an ordinance repealing the MFTE
program, should direct staff that it does not wish to change the program at this time, or should specify
the changes to the program that it would like to see.
Attachments: Section 5.1 of the Housing Action Plan, POMC 3.48, Existing MFTE Maps
Additional Information: Staff recently attended training presented by the authors of the book,
"Homelessness is a Housing Problem." The book provides an analysis of the root causes of
homelessness and looks at regional variation in homelessness across the US. A previous version of the
presentation that we attended is available for online viewing. https://vimeo.com/688483387 The
presentation starts about 7 minutes into the video.
One of the takeaways from the book is that increases in rent are correlated to increasing rates of
homelessness. One of the ways to prevent rent increases is to ensure that the housing supply is keeping
up with demand and that vacancy rates in the city remain at healthy levels. Tighter rental markets
typically lead to rising rents. As rents rise, people who are most at risk of homelessness due to financial
insecurity, disabilities, mental illness, or drug addiction are often the first to be displaced and have the
greatest difficulty finding new housing.
Data compiled and analyzed by the authors shows that increasing rents between 2010 and 2019 were
correlated to increasing rates of homelessness in the Seattle area (see on the next page). This is true of
all major metro areas studies but is most pronounced in smaller metro areas with rapid growth,
topographic constraints (mountains and water), and a difficult regulatory environment. In cities like
Seattle and San Francisco, the housing market is inelastic, because it is difficult for the market to rapidly
create new housing in response to rising rents and low vacancy rates. Inland sunbelt cities don't have
the same land constraints and have fewer regulations which makes the housing market more elastic in
its response to rising rents. This is depicted in figure 2 on the next page.
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When considering the MFTE program, the City Council should understand that the program helps to
mitigate for Washington's difficult regulatory environment and helps to make housing market more
elastic in its response to rising rents (regardless of whether the City chooses to offer an 8- or 12- year
exemption).
Interactive States Interactive
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Executive Summary 1
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Population growth versus housing supply elasticity
Dots indicate U.S. cities; parentheses indicate 2010-2019 rental vacancy rates.
Charlotte (6.5%)
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Change in population (2019 v. 2010)
Supply elasticity estimates foliow Saiz (20i0). figure forthcoming in Colburn & Aldern (2022).
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Port Orchard Housing Action Plan — June 2023
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5 - Funding Strategies
These actions relate to the financing and funding of affordable housing and related issues like
taxes, fees, and state law.
5.1 - Multifamily Tax Exemption Program
Action: Update the MFTE program based on increased developer interest in
multifamily and mixed -use projects to streamline requirements, balance affordability
and foregone tax revenue, and take advantage of increased flexibility in statewide
legislation.
5.1.1 — MFTE Overview
A multifamily tax exemption (MFTE) program is authorized by a 1995 state law, RCW 84.14.
Cities can grant an 8-year property tax exemption for any multifamily development or a 12-year
exemption for multifamily developments that reserve at least 20 percent of units for low- and
moderate -income households.
The state made several changes to the MFTE program in 2021. The 12-year tax exemption and
affordability covenants can now be renewed for 12 more years if the property owner continues
to provide units affordable to low-income families. Cities may now also offer a 20-year tax
exemption for ownership units if at least 25 percent of these condominium units are sold as
permanently affordable ownership housing.61
A MFTE program can be used for new buildings or existing buildings that require major
rehabilitation. For cities under 20,000 residents, both the 12-year and the 20-year programs
require the development to be in a zone that allows at least 15 dwelling units per acre.
Land, existing site improvements, and non-residential improvements are not exempt and are
subject to normal property taxes. At the local government's discretion, the exemption's basis
may be limited to the value of affordable units or other criteria. The local government has
latitude in many aspects. It can require certain public benefits, change what types of
development apply, and can map specific areas where the exemption is available. Cities can
also set lower maximum rent prices than the statute allows and other lease stipulations such as
requiring the participating units to be pet -friendly.
The MFTE program can have complex fiscal implications due to Washington's "levy lid"
restrictions which limit the rate of increase of total regular property tax revenue to 1 % per year
for communities of 10,000 or more. In theory, the value of the tax exemption granted to
developers would represent foregone revenue for the city. However, the reality is more
complicated. Construction of MFTE projects often takes place over multiple years and county
assessors are required to factor in the portion of new projects which are completed by July 31
each year. However, the tax exemption itself does not take effect until January 1 after the year
in which the project is completed. Theoretically, the assessor should remove the value of the
partially -constructed MFTE properties which were previously added at this point, however, in
61 "Overview of 2021 Changes to the Multifamily Housing Tax Exemption Program." Washington State Department of
Commerce. https://deptofcommerce.box.com/shared/static/7k5p88Vv4lm8ot882gbtzafwzlofkfO5.pdf
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reality this happens inconsistently. As a result, the value of the portion of the property which was
completed in years prior to the final year of construction can result in a "tax shift" where taxes on
that portion of the project's property value are shifted to the citywide tax base if that portion is
not removed from the assessor's table of total taxable property value.62 This complex situation
can obfuscate whether the tax exemption results in foregone revenue to the city or whether it
merely shifts taxes to the citywide tax base. In most cases, both are occurring to some degree.
The Washington Joint Legislative Audit and Review Committee's 2019 audit of the MFTE
program found that they could not determine the amount of local tax savings which was shifted
to other taxpayers as a result of the complex situation around the "levy lid."63
5.1.2 — Port Orchard MFTE Summary
Port Orchard has had an MFTE program in place since 2016, which is codified under Chapter
3.48 POMC, and which provides three types of exemptions. The "Type 1" program is a 12-year
exemption available to properties zoned for multifamily or mixed -use near transit or ferry and
requires 20 percent of units to be rented at affordable rates based on HUDs fair market rent.
The "Type 2" program is an 8-year exemption available to abandoned or underutilized
properties within local centers of importance which are encouraged to redevelop. The "Type 3"
program is an 8-year exemption available to properties within local centers of importance and
zoned for multifamily or mixed -use with requirements for denser, "urban" style development: a
minimum density of 50 units per acre and at least 50 percent structured parking, shopfronts
equal to 40 percent of all building footprints, or additional height purchased through the city's
transfer of development rights program.
A total of four projects totaling 332 units (including 20 affordable units) have been built using
Port Orchard's MFTE program, and four more projects totaling 427 more units (including 45
affordable units) are currently in progress. For a full summary of Port Orchard's MFTE program,
see Section 5 of the Existing Conditions and Housing Needs Analysis Report in the Appendix.
Port Orchard's method of setting subsidized rents in MFTE projects at 10 percent below HUD
fair market rents is unusual, as most jurisdictions in Washington rent subsidized MFTE units to
families earning between 80 and 115 percent of HUD's MFI for their area, and cap the rent at 30
percent of the household's income, adjusted for household size. 64 However, Port Orchard's
system meets legal state requirements and, based on a preliminary analysis, seems to result in
rents which are lower than those based on the larger Bremerton -Silverdale MSA HUD MR.
5.1.2 — Recommendations
Port Orchard has seen an increase in proposed downtown residential -commercial mixed -use
projects in recent years. Since these types of projects would be eligible for MFTE funding, it is
important to revisit and potentially update some aspects of the program to balance the benefit
62 This concept is very complex and more information can be found in Commerce's "What is Tax Shift?" guidesheet
here https://deptofcommerce.app.box.com/s/9ig7p2ebm467ddpmb1c5u3d4ei22cs1n as well as starting on p. 37 of
Commerce's MFTE guidebook here: https://deptofcommerce.app.box.com/s/i'5o8One5e1740mmh6uO5grmkO47g3cw
63 The JLARC audit's findings can be found at: https://leg.wa.gov/'Iarc/taxReports/2019/MFTE/f ii/default.html
64 Following HUD's definition of a "cost -burdened" household
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and foregone tax revenue of affordable units to ensure the program's goals are being met and
to address recent changes in the program allowed under state law.65
Clarify map and zoning of areas of MFTE eligibility. MFTE projects must be in urban centers
as defined by RCW 84.14.010, which describes compact districts with a variety of shops, a mix
of uses, and public facilities. Port Orchard's municipal code contains maps of parcels eligible for
MFTE funding, but they are difficult to read and are not updated with the latest parcel lines, as
shown below in Error! Reference source not found.. An improved map which shows both the
city's established "centers" and the outline of areas eligible for MFTE development at a larger
scale would streamline the process for potential developers.
Figure 23. Maps of parcels currently eligible for the Type 1, Type 2, and Type 3 MFTE programs. Source:
City of Port Orchard Municipal Code
Correct definition of underutilized buildings. POMC 3.48.040(2)(a)(iii) states that
underutilized buildings have an "assessed building value to land ratio of two -to -one or more."
This appears to be backwards, as underutilized buildings are defined by a low building to land -
value ratio. The code should be revised to state "building value to land ratio of two -to -one or
less," or land value to building value ratio of two -to -one or more."
Add minimum density in units per acre to multifamily and mixed -use zones. State law
requires that 12-year and 20-year MFTE programs which contain affordable rental or
homeownership units be located in areas zoned for a minimum average density of 15 units per
acre in cities with populations under 20,000. Port Orchard does not currently define minimum
unit densities in its code, although the allowed zoning in MFTE areas likely meets this threshold
based on allowed height, setbacks, FAR, etc. However, to better comply with state law,
considering quantifying minimum densities in the zoning code for mixed -use and multifamily
zones. See Section 2.3.3 for considerations.
Consider changes to the method of income calculations for affordable units and conduct
an audit of the program. Port Orchard's program is unusual in that it uses HUD fair market
rent to calculate rents for subsidized units. Although the system seems to be working and is
allowed under state law, it may be more complex for developers or property managers who are
accustomed to methods used in most other cities where MFTE programs are tied to the HUD
median family income. If the City wishes to ensure a deeper level of affordability compared to
the MFI, the program could be calibrated to a lower level (such as 60 percent rather than 80
65 A comprehensive list of 2021 legislative changes to the MFTE program can be found here:
https://deptofcommerce.box.com/shared/static/7k5p88Vv4l m8ot882gbtzafwzlofkf05.pdf
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Port Orchard Housing Action Plan — June 2023
percent MFI). Regardless of the method used, the city should audit the MFTE program annually
to ensure that the cumulative benefit to income -restricted residents is greater than the foregone
revenue from the tax exemption. This audit should be conducted by the Community
Development or Finance department and should result in an annual report presented to city
council. Additionally, consider partnering with Housing Kitsap for MFTE administration and to
reduce city staff's workload when verifying incomes of subsidized unit residents, since housing
authorities have infrastructure and skills in place to conduct such income verifications.
Consider removing transit proximity for affordable units. Port Orchard's Type 1 program
currently requires projects to be within '/z mile of a transit stop or ferry terminal. Although this
provides benefits to lower -income residents who do not own vehicles, the quality and availability
of transit service in Port Orchard is low and is a recent study by WSDOT indicates that transit in
the city is not at the level or frequency which encourages residents to own fewer vehicles.66
It is also not clear that transit proximity has any practical effect, since the maps for the Type 1
and Type 3 programs are nearly identical. Removing this requirement could expand eligible
projects and the distribution of affordable units across the city.
Consider a height bonus for MFTE developments. Currently Port Orchard allows a height
bonus for Type 3 MFTE developments through the Transfer of Development Rights (TDR)
program. Such programs are rarely used. Numerous cities in Washington, including Port
Angeles and Kirkland, allow height bonuses in exchange for the provision of affordable units in
their MFTE programs. Consider adding such a bonus to the MFTE to improve development
feasibility. Such a program could have separate height bonus allowances based on zoning and
MFTE program type. See Strategy 2.3.2 for more details.
Streamline requirements for Type 3 program. The Type 3 program currently has somewhat
stringent requirements to create denser, urban -style buildings through various criteria. Although
the intention to stimulate higher density development in centers is an important component of
the program, recent projects suggest that the share of structured parking, density, and
commercial square footage required may be disincentivizing use. Each of the three
requirements could be streamlined to increase viability of participating in the program:
• The requirement for 50 percent structured parking combined with 50 units per
acre of density may be redundant since the only way to achieve higher densities is by
putting parking into structures. Eliminating the structured parking requirement but
retaining a relatively high -density requirement (40-50 units per acre) would effectively
require that the project either include structured parking or that surface parking ratios are
relatively low.
• Reducing the requirement for 40 percent of all building footprints to contain
commercial use or replacing this requirement with a required minimum percentage of
the frontage being commercial would be appropriate given the exiting amount of
66 "Frequent Transit Service Study." Washington State Department of Transportation.
https://engage.wsdot.wa.gov/frequent-transit-service-study/
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Port Orchard Housing Action Plan — June 2023
commercial zoning in Port Orchard. The design requirements in the MFTE ordinance
may also be superfluous given the existing block frontage standards in POMC 20.127.
• Finally, an overall height bonus for MFTE developments as discussed above may be
more effective than the TDR height bonus option currently in the Type 3 program.
Reduce minimum number of units required for participation. Port Orchard's program
currently requires a minimum of 10 units in a project to qualify for the MFTE program. State law
only requires a minimum of four units. Updating the Port Orchard program to require a minimum
of four units would bring the program in line with statewide standards as well as potentially
providing added feasibility for smaller "missing middle" housing types.
Consider adding a requirement for affordable units to be distributed within a
development/building. This promotes principles of mixed -income communities and avoids real
or perceived concentrations of pover
Consider adding a 20-year MFTE program. Since 2021, cities under 20,000 residents such as
Port Orchard can add a 20-year ownership MFTE program under RCW 84.14.021(1)(b) where
at least 25 percent of units must be sold to a qualified nonprofit or local government partner that
will ensure permanent affordable homeownership. Providing affordable homeownership
opportunities to low- and moderate -income households can help build wealth for households
which otherwise could not afford to own a home.
Allow a 12-year extension for Type 1 participating property owners. Since 2021, cities are
allowed to grant a 12-year extension to existing MFTE programs within 18 months of expiration.
Multifamily housing approved for a 12-year extension must maintain 20% of units as affordable
for low-income households (during the extension period moderate -income households are no
longer included in the affordable unit counts). Tenant notice and relocation assistance are
required in the 10th and 11th years of projects receiving a 12-year extension (see more detail
below). Port Orchard should consider adding this provision to its MFTE program to ensure
continued affordability of units created through this program.
Require relocation assistance for low-income tenants whose rent subsidy is expiring.
The 2021 changes to the MFTE program which allow the 12-year extension described above
also require that landlords provide notice in the 10th and 11th years of the program that it will
expire in the 121h year and provide one month's rent as relocation assistance to qualified tenants
in their final month of tenancy. Best practices in line with the anti -displacement strategies in
Strategy 3.1 would also extend these tenant protections to any Type 1 property, regardless of
whether it is an extension or not.
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Sections:
3.48.010 Purpose.
3.48.020 Definitions.
Chapter 3.48
MULTIFAMILY PROPERTY TAX EXEMPTION
3.48.030 Residential targeted areas — Criteria — Designation.
3.48.040 Designated residential targeted areas — Types 1 through 3.
3.48.050 Terms of the tax exemption.
3.48.060 Project eligibility.
3.48.070 Application procedure.
3.48.080 Application review — Issuance of conditional certificate — Denial — Appeal.
3.48.090 Extension of conditional certificate.
3.48.100 Application for final certificate.
3.48.110 Issuance of final certificate.
3.48.120 Annual compliance review — Reporting.
3.48.130 Cancellation of tax exemption.
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3.48.140 Conflict of provisions.
3.48.010 Purpose.
As provided for in Chapter 84.14 RCW, the purpose of this chapter is to provide limited exemptions from ad valorem property taxation
for multifamily housing in designated residential targeted areas to:
(1) Encourage increased residential opportunities, including affordable housing units, within areas of the city designated by the city
council as residential targeted areas; and/or
(2) Stimulate new construction or rehabilitation of existing vacant and underutilized buildings for multifamily housing in designated
residential targeted areas to increase and improve housing opportunities, including affordable housing; and
(3) Accomplish the planning goals required under the Growth Management Act, Chapter 36.70A RCW, as implemented by the city's
comprehensive plan. (Ord. 029-20 § 2; Ord. 023-16 § 2).
3.48.020 Definitions.
When used in this chapter, the following terms shall have the following meanings, unless the context indicates otherwise:
(1) "Affordable housing" means the definition provided for in RCW 84.14.010.
(2) "Department" means the city department of community development.
(3) "Director" means the director of the department of community development or designee.
(4) "Fair market rent" means the Federal Department of Housing and Urban Development's estimate of what a household seeking a
modest rental home in a short amount of time can expect to pay for rent and utilities in the current market, as updated annually.
(5) "Household" means the definition provided for in RCW 84.14.010.
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(6) "Median family income" means the median family income for the Bremerton -Silverdale metropolitan statistical area, as calculated by
the Federal Department of Housing and Urban Development and updated annually.
(7) "Mixed -use development" means a mix of residential and commercial development, either in the same building or in separate
buildings on a site, and involving one or more building types, as permitted by the city's comprehensive plan, zoning (including any
overlay districts), and design regulations.
(8) "Multifamily housing" (for the purposes of this chapter) means a building having 10 or more dwelling units not designed or used as
transient accommodations, and not including hotels and motels. Multifamily units may result from new construction or rehabilitation or
conversion of vacant, underutilized, or substandard buildings to multifamily housing.
(9) "Owner" means the definition provided for in RCW 84.14.010.
(10) "Permanent residential occupancy" means the definition provided for in RCW 84.14.010.
(11) "Rehabilitation improvements" means the definition provided for in RCW 84.14.010.
(12) "Residential targeted area" means the definition provided for in RCW 84.14.010 and the area(s) that have been so designated by
the city council pursuant to this chapter.
(13) "Substantial compliance" means the definition provided for in RCW 84.14.010.
(14) "Urban center" means the definition provided for in RCW 84.14.010. (Ord. 029-20 § 2; Ord. 023-16 § 2).
3.48.030 Residential targeted areas — Criteria — Designation.
(1) Following notice and public hearing as prescribed in RCW 84.14.040 of the city council's intention of designating a residential
targeted area, the city council may, in its sole discretion, designate one or more residential targeted areas. Each residential targeted
area must meet the following criteria, as determined by the city council:
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(a) The area is within an urban center as designated in the city's comprehensive plan (as a regional, countywide, or local center),
or was previously designated a residential target area as shown on the map labeled Figure 1: Alternative 1 in Ordinance 023-16;
and
(b) The area lacks sufficient available, desirable, and convenient residential housing, including affordable housing, to meet the
needs of the public who would be likely to live in the urban center if affordable, desirable, attractive, and livable residences were
available; and
(c) Providing additional housing opportunities, including affordable housing, in the area will assist in achieving one or more of the
purposes of this chapter.
(2) In designating a residential targeted area, the city council may also consider other factors including, but not limited to:
(a) Additional housing, including affordable housing units, in the residential targeted area will attract and maintain an increase in
the number of permanent residents;
(b) An increased permanent residential population in the residential targeted area will help to achieve the planning goals mandated
by the Growth Management Act under Chapter 36.70A RCW, as implemented through the city's current and future comprehensive
plans;
(c) Encouraging additional housing in the residential targeted area is consistent with public transportation plans; or
(d) Additional housing may contribute to revitalization of a distressed neighborhood or area within the city.
(3) At any time the city council may, by resolution, and in its sole discretion, amend or rescind the designation of a residential targeted
area pursuant to the same procedural requirements as set forth in this chapter for original designation. (Ord. 029-20 § 2; Ord. 003-19
§ 2 (Exh. 1); Ord. 023-16 § 2).
3.48.040 Designated residential targeted areas — Types 1 through 3.
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In accordance with POMC 3.48.030, the city council has designated three types of designated residential targeted areas, as provided
below and as shown on Figures 1 through 3. The maps in Figures 1 through 3 are provided for planning purposes only, and all
development that is proposed to qualify for tax exemption within these areas must meet the criteria of this chapter, as well as all other
relevant city standards, including but not limited to: the comprehensive plan, zoning code, building code, public works standards, critical
areas regulations and the shoreline master program. The project must also comply with any other standards and guidelines adopted by
the city council for the specific residential targeted area.
(1) Type 1: Affordable Housing with Transit Access.
(a) As shown on Figure 1, the Type 1 residential targeted area is limited to parcels within centers designated in the comprehensive
plan that are zoned for multifamily (including mixed -use) development within one-half mile of a transit route or ferry terminal. If
more than 75 percent of the buildable portions of the property area are located more than one-half mile from a transit route or ferry
terminal, the property is not eligible for inclusion on the Figure 1 map.
(b) Residential development in a Type 1 residential targeted area is eligible to be considered for 12-year tax exemption.
(c) An affordable housing component is required.
(i) A minimum of 20 percent of all residential units in the development shall be rented for at least 10 percent below fair market
rent for 12 years, to tenants whose household annual income is:
(A) At or below 40 percent of median family income, for housing units in congregate residences or small efficiency
dwelling units;
(B) At or below 65 percent of median family income for one -bedroom units;
(C) At or below 75 percent of median family income for two -bedroom units; and
(D) At or below 80 percent of median family income for three -bedroom and larger units.
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(ii) If calculations for the minimum 20 percent of the residential units required under subsection (1)(c)(i) of this section result in
a fraction, then the minimum number of residential units required to meet the affordable housing requirement shall be rounded
up to the next whole number.
Figure 1: Type 1 Tax Exemption Map
(2) Type 2: Redevelopment Areas.
Type 1 Tax Exemption
Multifamily -zoned Parcels
in Designated Centers
and Other Properties
City Limits
Applicable Properties
(a) As shown on Figure 2, the Type 2 residential targeted area is limited to parcels within centers designated in the comprehensive
plan that are encouraged to redevelop with multifamily or mixed -use development. These include parcels that: (i) have abandoned
buildings (vacant or unused for more than two years); (ii) underutilized buildings (50 percent or more vacancy for more than two
years); or (iii) contain existing structures and improvements with an assessed building value to land ratio of two -to -one or more.
(b) Residential development in a Type 2 residential targeted area is eligible to be considered for eight -year tax exemption.
(c) No affordable housing component is required.
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(d) For certain parcels, rezoning may be required for multifamily or mixed -use development.
iption -
int
Figure 2: Type 2 Tax Exemption Map
(3) Type 3: Mixed -Use Development with Structured Parking and/or Transfer of Development Rights.
(a) As shown on Figure 3, the Type 3 residential targeted area is limited to parcels within centers designated in the comprehensive
plan that are zoned for multifamily (including mixed -use) development.
(b) Residential development in a Type 3 residential targeted area is eligible to be considered for an eight -year tax exemption.
(c) No affordable housing component is required.
(d) The proposed development shall include at least one of the following:
(i) At least 50 percent of the required parking for the proposed use(s) shall be located within the footprint of a building
containing multifamily units, in a multistory parking structure, at/or below grade; and the project should achieve at least 50
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units per net developable acre (excluding critical areas and buffers, and other land that is undevelopable such as shoreline
buffers and tidelands).
(ii) Construct mixed -use shopfront building type development (refer to Chapter 20.32 POMC) containing
non residential/non parking garage square footage that measures at least 40 percent of the total building footprint square
footage for all buildings on the development site. The non residential/nonparking garage square footage may be in one or more
buildings on the site. Live -work units shall be considered as nonresidential square footage for the purpose of achieving the
required 40 percent minimum; provided, that the units are designed as shopfronts along a public street.
(iii) Purchase one additional story of building height for one or more buildings through the city's transfer of development rights
(TDR) program (refer to Chapter 20.41 POMC) and construct (a) building(s) that utilizes the additional height allowance.
Type 3 Tax Exemption
Multifamily -Zoned Properties
in Centers
O City Limits
Document Path'. U'.\GIS\K,,ATax Abate tType 3 Tax Abatement Map T2.20M mxd
Figure 3: Type 3 Tax Exemption Map
(Ord. 029-20 § 2).
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3.48.050 Terms of the tax exemption.
(1) Duration of Exemption. The value of new housing construction, conversion, and rehabilitation improvements qualifying under this
chapter is exempt from ad valorem property taxation, as follows:
(a) For both eight -year and 12-year exemptions, the exemption begins on January 1 st of the year immediately following the
calendar year of issuance of the tax exemption certificate.
(b) For 12-year exemptions, the number of residential units identified to meet the requirements for an affordable housing
component per POMC 3.48.040(1)(c) shall continue to be made available for the length of the exemption period.
(i) The mix and configuration of housing units (e.g., studio, one -bedroom, two -bedroom) used to meet the requirement for
affordable units shall be substantially proportional to the mix and configuration of the total housing units in the project.
(ii) When a project includes more than one building with multifamily housing units, all of the affordable housing units required
in this subsection must not be located in the same building.
(2) Limits on Exemption. The exemption does not apply:
(a) To the value of land or to the value of nonhousing-related improvements not qualifying under this chapter.
(b) In the case of rehabilitation of existing buildings, to the value of improvements constructed prior to submission of the completed
application required under this chapter.
(c) To increases in assessed valuation made by the Kitsap County assessor on nonqualifying portions of building or other
improvements and value of land nor to increases made by lawful order of a county board of equalization, the Department of
Revenue, or Kitsap County, to a class of property throughout the county or specific area of the county to achieve the uniformity of
assessment or appraisal required by law.
(3) Conclusion of Exemption. At the conclusion of the exemption period, the new or rehabilitated housing cost shall be considered as
new construction for the purposes of Chapter 84.55 RCW. (Ord. 029-20 § 2; Ord. 003-19 § 2; Ord. 023-16 § 2. Formerly 3.48.040).
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3.48.060 Project eligibility.
A proposed multifamily housing project must meet all of the following requirements for consideration for a property tax exemption:
(1) Location. The project must be located within a residential targeted area as provided in POMC 3.48.040.
(2) Tenant Displacement Prohibited. The project must not displace existing residential tenants of structures that are proposed for
redevelopment. If the property proposed to be rehabilitated is not vacant, an applicant shall provide each existing tenant housing of
comparable size, quality, and price and a reasonable opportunity to relocate.
(3) Noncompliance with Building Codes. Existing dwelling units proposed for rehabilitation must fail to comply with one or more
standards of the applicable state or city building codes.
(4) Size of Project. The new, converted, or rehabilitated multiple -unit housing must provide for a minimum of 50 percent of the space
(excluding structured parking) for permanent residential occupancy. The project, whether new, converted, or rehabilitated multiple -unit
housing, must include at least 10 units of multifamily housing within a residential structure or as part of an urban development. In the
case of existing multifamily housing that is occupied or which has not been vacant for 12 months or more, the multifamily housing
project must also provide for a minimum of four additional multifamily units for a total project of at least 10 units including the four
additional units. Existing multifamily housing that has been vacant for 12 months or more does not have to provide additional units.
(5) Proposed Completion Date. New construction of multifamily housing and rehabilitation improvements must be completed within three
years from the date of approval of the application. (Ord. 029-20 § 2; Ord. 023-16 § 2 Formerly 3.48.050).
3.48.070 Application procedure.
A property owner who wishes to propose a project for a tax exemption shall complete the following procedures-
(1) The exemption application provided by the city shall be completed and filed with the department prior to issuance of a building permit
for the project. The completed application shall be accompanied by the application fee as authorized by RCW 84.14.080 and as set forth
in the city's current fee resolution.
(2) The exemption application shall contain and require such information as deemed necessary by the director, including:
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(a) A brief written description of the project, including timing and construction schedule, setting forth the grounds for the exemption.
(b) Floor and site plans of the proposed project, which may be revised by the owner, provided such revisions are made and
presented to the director prior to the city's final action on the exemption application.
(c) For rehabilitation projects, the applicant shall provide a report prepared by a registered architect identifying property
noncompliance with current building codes. This report shall identify specific code violations and must include supporting data that
satisfactorily explains and proves the presence of a violation. Supporting data must include a narrative and such graphic materials
as needed to support this application. Graphic materials may include, but are not limited to, building plans, building details, and
photographs.
(d) If applying for a 12-year exemption, it shall include information describing how the applicant will comply with the affordability
requirements set forth in POMC 3.48.040(1)(c).
(e) A statement from the owner acknowledging the potential tax liability when the project ceases to be eligible under this chapter.
(f) An affidavit signed by the owner stating the occupancy record of the property for a period of 12 months prior to filing the
application.
(g) Verification of the correctness of the information submitted by the owner's signature and affirmation made under penalty of
perjury under the laws of the state of Washington. (Ord. 029-20 § 2; Ord. 023-16 § 2. Formerly 3.48.060).
3.48.080 Application review — Issuance of conditional certificate — Denial —Appeal.
(1) Director's Decision. The director may certify as eligible an application which is determined to comply with all applicable requirements
of this chapter. A decision to approve or deny an application shall be made within 90 calendar days of receipt of a complete application.
(2) Approval of Application — Contract Required. If an application is approved, the applicant shall enter into a contract with the city,
regarding the terms and conditions of implementation of the project, and pursuant to the following:
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(a) The contract shall be subject to approval by the city council in the form of a resolution, regarding the terms and conditions of the
project and eligibility for exemption under this chapter. This contract shall be a covenant running with the land and shall be binding
on the assigns, heirs, and successors of the applicant.
(b) For any development project including owner -occupied units, the contract with the city shall also require that an owners'
association organized under RCW 64.34.300 be formed for all owner -occupied units within the development, for at least the length
of the exemption period granted, to assume the responsibility for collecting from all individual unit owners the information and
documents required to complete the annual reporting requirements and for filing the required annual report with the city for each of
the individual homeowners pursuant to POMC 3.48.120.
(c) Amendment of Contract. Within three years of the date from the city council's approval of the contract, an owner may request
an amendment(s) to the contract by submitting a request in writing to the director. The fee for an amendment is as set forth in the
city's current fee resolution. The director shall have authority to approve minor changes to the contract that are reasonably within
the scope and intent of the contract approved by the city council, as solely determined by the director. Amendments that are not
reasonably within the scope and intent of the approved contract, as solely determined by the director, shall be submitted to the city
council for review and approval. The date for expiration of the conditional certificate shall not be extended by contract amendment
unless all the conditions for extension set forth in POMC 3.48.090 are met.
(3) Issuance of Conditional Certificate. Upon city council approval of the contract required under subsection (2) of this section, the
director shall issue a conditional certificate of acceptance of tax exemption. The conditional certificate shall expire three years from the
date of city council approval unless an extension is granted as provided in this chapter.
(4) Denial of Application. If an application is denied, the director shall state in writing the reasons for denial and shall send notice to the
applicant at the applicant's last known address within 10 calendar days of issuance of the denial.
(5) Appeal. Per RCW 84.14.070, an applicant may appeal a denial to the city council within 30 calendar days of receipt of the denial by
filing a complete appeal application and fee, as set forth in the city's current fee resolution, with the director. The appeal before the city
council will be based on the record made before the director. The director's decision shall be upheld unless the applicant can show that
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there is no substantial evidence on the record to support the director's decision. The city council's decision on appeal will be final. (Ord.
029-20 § 2; Ord. 023-16 § 2. Formerly 3.48.070).
3.48.090 Extension of conditional certificate.
(1) Extension. The conditional certificate and time for completion of the project may be extended by the director for a period not to
exceed a total of 24 consecutive months. To obtain an extension, the applicant must submit a written request with a fee, as set forth in
the city's current fee resolution, stating the grounds for the extension. An extension may be granted if the director determines that:
(a) The anticipated failure to complete construction or rehabilitation within the required time period is due to circumstances beyond
the control of the owner; provided, that financial hardship, regardless of the cause or reason, shall not be considered by the
director as a circumstance beyond the control of the owner in order to grant an extension;
(b) The owner has been acting and could reasonably be expected to continue to act in good faith and with due diligence; and
(c) All the conditions of the original contract (and as amended) between the applicant and the city will be satisfied upon completion
of the project.
(2) Denial of Extension. If an extension is denied, the director shall state in writing the reason for denial and shall send notice to the
applicant's last known address within 10 calendar days of issuance of the denial.
(3) Appeal. An applicant may appeal the denial of an extension to the hearing examiner within 14 calendar days of receipt of the denial
by filing a complete appeal application and appeal fee with the director. The appeal before the hearing examiner shall be processed as a
closed record hearing. No appeal to the city council is provided from the hearing examiner's decision. (Ord. 029-20 § 2; Ord. 023-16 § 2.
Formerly 3.48.080).
3.48.100 Application for final certificate.
Upon completion of the improvements agreed upon in the contract between the applicant and the city and upon issuance of a temporary
or permanent certificate of occupancy, the applicant may request a final certificate of tax exemption by filing with the director such
information as the director may deem necessary or useful to evaluate the eligibility for the final certificate, including the following:
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(1) A statement of expenditures made with respect to each multifamily housing unit and the total expenditures made with respect to the
entire property;
(2) A description of the completed work and a statement of qualification for the exemption;
(3) The total monthly rent or total sale amount of each multifamily housing unit rented or sold to date;
(4) A statement that the work was completed within the required three-year period or any authorized extension;
(5) If a 12-year exemption, information on the applicant's compliance with the affordability requirements of this chapter; and
(6) Any additional information requested by the city pursuant to meeting any reporting requirements under Chapter 84.14 RCW. (Ord.
029-20 § 2; Ord. 023-16 § 2. Formerly 3.48.090).
3.48.110 Issuance of final certificate.
(1) Director's Decision. Within 30 calendar days of receipt of all materials required for a final certificate, the director shall determine
whether the specific improvements satisfy the requirements of the contract, application, and this chapter.
(2) Granting of Final Certificate. If the director determines that the project has been completed in accordance with this chapter and the
contract between the applicant and the city, and has been completed within the authorized time period, the city shall, within 10 calendar
days of the expiration of the 30-day review period above, file a final certificate of tax exemption with the Kitsap County assessor. The
director is authorized to cause to be recorded, at the owner's expense, in the real property records of the Kitsap County department of
records, the contract with the city, as amended if applicable, and such other document(s) as will identify such terms and conditions of
eligibility for exemption under this chapter as the director deems appropriate for recording, including requirements under this chapter
relating to affordability of units.
(3) Denial of Final Certificate. The director shall notify the applicant in writing that a final certificate will not be filed if the director
determines that:
(a) The improvements were not completed within the authorized time period;
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(b) The improvements were not completed in accordance with the contract between the applicant and the city; or
(c) The owner's property is otherwise not qualified under this chapter.
(4) Appeal. An applicant may appeal a denial of a final certificate to the hearing examiner within 14 calendar days of issuance of the
denial of a final certificate by filing a complete appeal application and appeal fee with the director. The appeal before the hearing
examiner shall be processed as a closed record hearing. No appeal to the city council is provided from the hearing examiner's decision.
(Ord. 029-20 § 2; Ord. 023-16 § 2. Formerly 3.48.100).
3.48.120 Annual compliance review — Reporting.
(1) Within 30 calendar days after the first anniversary of the date of filing the final certificate of tax exemption and each year for the tax
exemption period, the property owner shall be required to file a notarized declaration with the director indicating the following:
(a) A statement of occupancy and vacancy of the multifamily units during the previous 12 months;
(b) A certification by the owner that the property has not changed use and continues to be in compliance with the contract with the
city and the applicable requirements of this chapter;
(c) A description of changes or improvements to the property made after the city's issuance of the final certificate of tax exemption;
(d) The total monthly rent of each multifamily housing unit rented or the total sale amount of each unit sold during the 12 months
ending with the anniversary date;
(e) A breakdown of the number, type, and specific multifamily housing units rented or sold during the 12 months ending with the
anniversary date;
(f) If granted a 12-year exemption, information demonstrating the owner's compliance with the affordability requirements of this
chapter, including, but not limited to, the income of each renter household at the time of initial occupancy or the income of each
purchaser of owner -occupied units at the time of purchase;
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(g) The value of the tax exemption for the project; and
(h) Any additional information requested by the city pursuant to meeting any reporting requirements under Chapter 84.14 RCW.
(2) City staff may also conduct on -site verification of the declaration and reporting required under this section. Failure to submit the
annual declaration and report may result in cancellation of the tax exemption pursuant to this chapter and shall result in a review of the
exemption per RCW 84.14.110.
(3) If the city issues final tax exemption certificates pursuant to this chapter, the director shall submit the report required by RCW
84.14.100 to the State Department of Commerce by December 31 st of each year. (Ord. 029-20 § 2; Ord. 023-16 § 2. Formerly
3.48.110).
3.48.130 Cancellation of tax exemption.
(1) The director may cancel a tax exemption on a property if they determine any of the following:
(a) The owner is not complying with the terms of the contract or this chapter;
(b) The use of the property is changed or will be changed to a use that is other than residential;
(c) The project violates applicable zoning requirements, land use regulations, building, or fire code requirements; or
(d) The owner fails to submit the annual declaration and report specified in POMC 3.48.120.
(2) If the owner intends to convert the multifamily housing to another use, the owner shall notify the director and the Kitsap County
assessor in writing within 60 calendar days of the change in use.
(3) Cancellation may occur in conjunction with the annual review or at any such time noncompliance has been determined.
(4) Upon cancellation of the tax exemption, additional taxes, interest, and penalties shall be imposed on the property, and a priority lien
may be placed on the land, pursuant to state law.
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Chapter 3.48 MULTIF! Back to Agenda
(5) Notice of Cancellation. Upon determining that a tax exemption is to be canceled, pursuant to RCW 84.14.110(2), the director shall
notify the owner by mail, return receipt requested.
(6) Appeal of Cancellation. The owner may appeal the determination of cancellation to the hearing examiner by filing a notice of appeal
and appeal fee with the city clerk within 30 calendar days of the date of the notice of cancellation, specifying the factual and legal basis
for the appeal. The appeal shall be heard by the hearing examiner as a closed record hearing. No appeal to the city council is provided
from the hearing examiner's decision. (Ord. 017-23 § 1 (Exh. A); Ord. 029-20 § 2; Ord. 023-16 § 2. Formerly 3.48.120).
3.48.140 Conflict of provisions.
If any provision of this chapter is in legal conflict with the provisions of Chapter 84.14 RCW, as currently adopted or hereafter amended,
the provisions of Chapter 84.14 RCW shall apply as if set forth in this chapter. (Ord. 029-20 § 2; Ord. 023-16 § 2. Formerly 3.48.130).
The Port Orchard Municipal Code is current through Ordinance 021-23, passed August 8, 2023.
Disclaimer: The city clerk's office has the official version of the Port Orchard Municipal Code. Users should contact the city clerk's office for ordinances
passed subsequent to the ordinance cited above.
City Website: httpa//www.cityQfportorchard.us/
City Telephone: (360) 876-4407
Code Publishing Company_
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Type 2 Tax Exemption -
Redevelopment
City Limits
of 86
Document Path: U:\GIS\Keri\Tax Abatement\Type 2 Tax Abatement 7.22.2020.mxd
I
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City of Port Orchard
2023 Multi -Family Tax Exemption
Impact
September 19, 2023
Page 34 of 86
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Discussion
► What is the impact of the Multi -family Tax Exemption
on City of Port Orchard Property Tax Revenue?
► What is the impact to the property owners of Port
Orchard?
► Is there an impact to other jurisdictions within the City?
Page 35 of 86
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2019-2023 Multi -Family Tax Exemptions History
2019 Tax Year Ovah LLC
Exempted New Construction Assessed Value $1,506,000
Exempted New Construction Levy Value ($1,506,000�1.6683)/1000=
2020 Tax Year Ovah LLC
Exempted New Construction Assessed Value $4,130,270
Exempted New Construction Levy Value ($4,130,270*1.5368/1000)=
►
2021
No
New
Exemptions
►
2022
No
New
Exemptions
2023 Tax Year Pottery Creek
Exempted New Construction Assessed Value $18,997,203
Exempted New Construction Levy Value ($18,997,203*1.2712)/1000=
$2.9512
$6.9347
�241149
Page 36 of 86
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2019-2038 Forgone Property TaxAgenda Levy Collection
Over the ► 2019 $21512 2029 $35Y352
next 20- 0, 2020 $8Y885 ► 2030 $35.1706
years of lo 2021 $8.1974 2031 $3,1055
collections � 2022 $9Y063 2032 $3Y085
the City 2023 $33)303 ► 2033 $31116
will have
forgone ► 2024 $33)636 ► 2034 $39147
$330,V700 0oo. 2025 $33Y973 ► 2035 $3Y179
of Property 2026 $34Y312 ► 2036 $3Y210
Tax Levy � 2027 $34.9655 2037 $39242
Collections 2028 $35YO02 2038 $ 75
Page 37 of 86
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Revenues Collected
► Park Impact Fee:
► Transportation Impact Fee:
► Total Impact Fee Revenue:
$1041536
$2811710
$386,246
► No Sewer or Water Connection Fee revenue as these
are serviced by WSU D
Page 38 of 86
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o Agenda
Future Mutti-Family
Tax Exemptions Anticipated
Entity Est. New Construction Value Levy Impact
Plisko Apartments
Blueberry Apartments
Salmonberry Apartments
Sedgwick Apartments
Total
$5,856,240 $?
$11,345,128 $?
$314021108 $?
$13,972,909 $?
$34.V576.V386
Illustrative Only: $34,576,386*(1.27121 1000) _ $43,953
$43 Y 953+ 1 % per year
Page 39 of 86
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What is the impact to the property owners
of Port Orchard?
2023 Avg PO Resident AV 457,005
Current with
Exemption Per
1,000 of AV
Without
Exemption Per
1,000 of AV
Property
Taxes With
Exemption
Property
Taxes W/O
Exemption
Additional
Cost
All
$
8.4116
$
8.3869
$
3,844
$
3,833
$
11.25
County
$
0.6255
$
0.6237
$
286
$
285
$
0.84
County Conservation Future
$
0.0261
$
0.0260
$
12
$
12
$
0.03
State School Part 1
$
1.6181
$
1.6134
$
740
$
737
$
2.16
State School Part 2
$
0.8643
$
0.8617
$
395
$
394
$
1.16
SD 402 Special
$
2.1075
$
2.1013
$
963
$
960
$
2.82
City
$
1.1211
$
1.1178
$
512
$
511
$
1.50
Port of Bremerton
$
0.1971
$
0.1965
$
90
$
90
$
0.26
Fire Dist. No. 7
$
1.1073
$
1.1041
$
506
$
505
$
1.48
Fire Dist. No. 7- Emergency Med
$
0.4237
$
0.4224
$
194
$
193
$
0.57
Public Utility District No. 1 General
$
0.0447
$
0.0446
$
20
$
20
$
0.06
Library
$
0.2762
$
0.2753
126
$
126
$
0.37
15
041pkisirkM40
This concludes my
remarks.
QUestions?
Back to Agenda
`yam■�� � � IIIAI �_'a aRnR_.
Issue Title:
Meeting Date:
Time Required
Attendees:
City of Port Orchard
Work Study Session Executive Summary
LTGO Bond Delegation Ordinance
September 19, 2023
30 Minutes
Noah Crocker
Action Requested At This Meeting:
Issue: LTGO bond delegation ordinance for city hall construction
Background:
The City Council adopted Resolution 059-23 on June 13,2023 awarding contract C048-23 for
construction improvements to the City Hall facility (including replacement of siding and
windows, improvements to the HVAC system, minor interior renovations, and the acquisition
and installation of solar power equipment and other related capital improvements and public
amenities, all as deemed necessary and advisable by the City.
The City Council adopted Resolution 065-23 on June 27,2023 declaring its intent to be
reimbursed from a future borrowing for capital expenditures in connection with the City Hall
Construction Project.
The City Council adopted Ordinance 018-23 on June 27,2023 amending the 2023-2024
biennial budget to provide funding for contract C048-23 and to cashflow the City Hall
Construction project until the future borrowing could be secured.
The Ordinance being presented provides for the delegation of authority to issue bonds.
• The Ordinance authorizes the Mayor and/or Finance Director to proceed with
finalizing the bond issuance within certain parameters set out in the Ordinance.
Finance expects to close the financing for the project before the end of 2023.
However, the delegation expires after one year, in case additional time is needed due
to bond market conditions or other factors.
The bonds will be "limited tax general obligation" bonds. This means that they
are issued within the City's non -voted debt limitation and will be backed by the City's
full faith and credit. Finance expects to use several general fund resources to repay
the bonds, which will be reflected in annual budget appropriations for debt service.
Page 42 of 86
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Executive Summary 2
Paae 2 of 2
The maximum amount that may be issued is not more than $11,120,000.
Finance expects that the final par amount of the bonds will be less than this, but the
higher amount allows for adjustments for pricing the bonds based on market
conditions. It targets a deposit of money to the project fund of approximately $11
million, plus an estimated cushion sufficient to pay costs of issuing the bonds, such
as payment to the underwriter, bond counsel, and rating agency, as well as costs of
printing and posting disclosure documents and other related administrative expenses.
• The Ordinance limits the borrowing cost. Interest rates will be determined on the
"pricing" date, based on bond market conditions on that date. If the true interest cost
available on that date exceeds 6.0%, the finance department may not proceed
without seeking additional authorization from the City Council.
The maximum term of the financing will be 20 years. The finance team expects to
reserve the City's right to refinance at lower rates after 10 years,
The Ordinance assigns to the Finance Department certain administrative
responsibilities. After issuing the bonds, the City will have a responsibility to monitor
ongoing compliance with federal tax and securities laws after the Bonds are issued
until they are fully repaid.
Alternatives:
Recommendation:
Relationship to Comprehensive Plan: City Hall
Attachments: To be provided
Follow-up Notes & Outcomes:
Page 43 of 86
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CITY OF PORT ORCHARD, WASHINGTON
ORDINANCE NO.
AN ORDINANCE of the City of Port Orchard, Washington, relating to
contracting indebtedness; providing for the issuance, sale and delivery of not to
exceed $11,120,000 aggregate principal amount of limited tax general obligation
bonds to provide funds (i) to pay for a portion of the costs of certain
improvements to the existing City Hall building and other capital improvements,
and (ii) to pay the costs of issuance and sale of the bonds; fixing or setting
parameters with respect to certain terms and covenants of the bonds; appointing
the City's designated representative to approve the final terms of the sale of the
bonds; and providing for other related matters.
Passed , 2023
This document prepared by
STRADLING YOCCA CARLSON & RAUTH, PC
Seattle, Washington
(206) 829-3000
Page 44 of 86
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TABLE OF CONTENTS*
Page
Section1.
Definitions............................................................................................................... 1
Section 2.
Findings and Determinations.................................................................................. 4
Section 3.
Authorization of Bonds...........................................................................................
5
Section 4.
Description of Bonds; Appointment of Designated Representative ....................... 5
Section 5.
Bond Registrar; Registration and Transfer of Bonds ..............................................
5
Section 6.
Form and Execution of Bonds................................................................................ 6
Section7.
Payment of Bonds...................................................................................................
7
Section 8.
Funds and Accounts; Deposit of Proceeds.............................................................. 7
Section 9.
Redemption Provisions and Purchase of Bonds ..................................................... 8
Section10.
Failure To Pay Bonds.............................................................................................. 9
Section11.
Pledge of Taxes....................................................................................................... 9
Section 12.
Tax Covenants; Designation of Bonds as "Qualified Tax Exempt
Obligations."........................................................................................................... 9
Section 13.
Refunding or Defeasance of the Bonds................................................................
10
Section 14.
Sale and Delivery of the Bonds............................................................................
11
Section 15.
Official Statement; Continuing Disclosure...........................................................
1 1
Section 16.
Supplemental and Amendatory Ordinances..........................................................
12
Section 17.
General Authorization and Ratification................................................................
12
Section18.
Severability...........................................................................................................
12
Section 19.
Effective Date of Ordinance.................................................................................
13
Exhibit A Parameters for Sale Terms
Exhibit B Form of Undertaking to Provide Continuing Disclosure
*The coverpage, table of contents and section headings of this ordinance are for convenience of reference only, and
shall not be used to resolve any question of interpretation of this ordinance.
Page 45 of 86
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CITY OF PORT ORCHARD, WASHINGTON
ORDINANCE NO.
AN ORDINANCE of the City of Port Orchard, Washington, relating to
contracting indebtedness; providing for the issuance, sale and delivery of not to
exceed $11,120,000 aggregate principal amount of limited tax general obligation
bonds to provide funds (i) to pay for a portion of the costs of certain
improvements to the existing City Hall building and other capital improvements,
and (ii) to pay the costs of issuance and sale of the bonds; fixing or setting
parameters with respect to certain terms and covenants of the bonds; appointing
the City's designated representative to approve the final terms of the sale of the
bonds; and providing for other related matters.
THE CITY COUNCIL OF THE CITY OF PORT ORCHARD, WASHINGTON, DO
ORDAIN AS FOLLOWS:
Section 1. Definitions. As used in this ordinance, the following capitalized terms
shall have the following meanings:
(a) "Authorized Denomination" means $5,000 or any integral multiple thereof within
a maturity of a Series.
(b) "Beneficial Owner" means, with respect to a Bond, the owner of any beneficial
interest in that Bond.
(c) "Bond" means each bond issued pursuant to and for the purposes provided in this
ordinance.
(d) "Bond Counsel" means the firm of Stradling Yocca Carlson & Rauth, a
Professional Corporation, its successor, or any other attorney or firm of attorneys selected by the
City with a nationally recognized standing as bond counsel in the field of municipal finance.
(e) "Bond Fund" means the Limited Tax General Obligation Bond Fund, of the City
created for the payment of the principal of and interest on the Bonds and other general obligation
bonds of the City.
(f) "Bond Purchase Agreement" means an offer to purchase a Series of the Bonds,
setting forth certain terms and conditions of the issuance, sale and delivery of those Bonds,
which offer is authorized to be accepted by the Designated Representative on behalf of the City,
if consistent with this ordinance.
(g) "Bond Register" means the books or records maintained by the Bond Registrar for
the purpose of identifying ownership of each Bond.
(h) "Bond Registrar" means the Fiscal Agent, or any successor bond registrar
selected by the City.
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(i) "Book -Entry Form" means a fully registered form in which physical bond certificates
are registered only in the name of the Securities Depository (or its nominee), as Registered Owner,
with the physical bond certificates held by and immobilized in the custody of the Securities
Depository (or its designee), where the system for recording and identifying the transfer of the
ownership interests of the Beneficial Owners in those Bonds is neither maintained by nor the
responsibility of the City or the Bond Registrar.
0) "City" means the City of Port Orchard, Washington, a municipal corporation duly
organized and existing under the laws of the State.
(k) "City Council" means the legislative authority of the City, as duly and regularly
constituted from time to time.
(1) "Code" means the United States Internal Revenue Code of 1986, as amended, and
applicable rules and regulations promulgated thereunder.
(m) "DTC" means The Depository Trust Company, New York, New York, or its
nominee.
(n) "Designated Representative" means the officer or officers of the City appointed in
Section 4 of this ordinance to serve as the City's designated representative in accordance with
RCW 39.46.040(2).
(o) "Finance Officer" means the City Treasurer, or such other officer of the City who
succeeds to substantially all of the responsibilities of that office, or his or her designee.
(p) "Fiscal Agent" means the fiscal agent of the State, as the same may be designated
by the State from time to time.
(q) "Government Obligations" has the meaning given in RCW 39.53.010, as now in
effect or as may hereafter be amended.
(r) "Issue Date" means, with respect to a Bond, the date of initial issuance and
delivery of that Bond to the Purchaser in exchange for the purchase price of that Bond.
(s) "Letter of Representations" means the Blanket Issuer Letter of Representations
between the City and DTC, authorized to be executed in connection with the issuance and sale of
the Bonds authorized herein, and any successor or substitute letter relating to the operational
procedures of the Securities Depository.
(t) "MSRB" means the Municipal Securities Rulemaking Board.
(u) "Official Statement" means an offering document, disclosure document, private
placement memorandum or substantially similar disclosure document provided to purchasers and
potential purchasers in connection with the initial offering of a Series of the Bonds in
conformance with Rule 15c2-12 or other applicable regulations of the SEC.
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(v) "Owner" means, without distinction, the Registered Owner and the Beneficial
Owner.
(w) "Project" includes improvements to the City Hall facility (including replacement
of siding and windows, improvements to the HVAC system, minor interior renovations, and the
acquisition and installation of solar power equipment) and other related capital improvements
and public amenities, all as deemed necessary and advisable by the City. Incidental costs
incurred in connection with carrying out and accomplishing the Project, consistent with RCW
39.46.070, may be included as costs of the Project.
(x) "Project Fund" means the fund or account of the City designated by the Finance
Officer to be used for the purpose of carrying out the Project.
(y) "Purchaser" means D.A. Davidson & Co. of Seattle, Washington or such other
corporation, firm, association, partnership, trust, bank, financial institution or other legal entity or
group of entities selected by the Designated Representative to serve as purchaser in a private
placement, or underwriter in a negotiated sale.
(z) "Rating Agency" means any nationally recognized rating agency then maintaining
a rating on the Bonds at the request of the City.
(aa) "Record Date" means the Bond Registrar's close of business on the 15th day of
the month preceding an interest payment date. With respect to redemption of a Bond prior to its
maturity, the Record Date shall mean the Bond Registrar's close of business on the date on
which the Bond Registrar sends the notice of redemption in accordance with Section 9.
(bb) "Registered Owner" means, with respect to a Bond, the person in whose name
that Bond is registered on the Bond Register. For so long as the City utilizes the book -entry only
system for the Bonds under the Letter of Representations, Registered Owner shall mean the
Securities Depository.
(cc) "Rule I5c2-12" means Rule 15c2-12 promulgated by the SEC under the
Securities Exchange Act of 1934, as amended.
(dd) "SEC"' means the United States Securities and Exchange Commission.
(ee) "Sale Terms" means the terms and conditions for the sale of a Series of the Bonds
including the amount, date or dates, denominations, interest rate or rates (or mechanism for
determining interest rate or rates), payment dates, final maturity, redemption rights, price, and
other terms or covenants.
(ff) "Securities Depository" means DTC, any successor thereto, any substitute
securities depository selected by the City, or the nominee of any of the foregoing. Any successor
or substitute Securities Depository must be qualified under applicable laws and regulations to
provide the services proposed to be provided by it.
(gg) "Series of the Bonds" or "Series" means a series of the Bonds issued pursuant to
this ordinance.
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(hh) "State" means the State of Washington.
(ii) "System of Registration" means the system of registration for the City's bonds and
other obligations set forth in Ordinance No. 1732 of the City.
0j) "Term Bond" means each Bond designated as a Term Bond and subject to
mandatory redemption in the years and amounts set forth in the Bond Purchase Agreement.
(kk) "Undertaking" means the undertaking to provide continuing disclosure entered
into pursuant to Section 15 of this ordinance.
Section 2. Findings and Determinations. The City takes note of the following facts
and makes the following findings and determinations:
(a) Authority and Description of Project. In accordance with RCW 35A.11010 and
other applicable law, the City is authorized to undertake the improvements to City Hall
comprising the Project. The City is in need of funds to carry out the Project and the City Council
finds that it is in the best interests of the City to issue the bonds authorized herein in order to
finance the Project.
(b) Plan of Financing. Pursuant to applicable law, including without limitation
chapters 35.37, 35A.40, 39.36, 39.44, and 39.46 RCW, the City is authorized to issue general
obligation bonds for the purpose of financing the Project, which is a municipal purpose. The
total expected cost of the Project is approximately $11,120,000 million, which is expected to be
made up of proceeds of the Bonds and other available money of the City, which may include
state or federal loans and/or grants, if available.
(c) Debt Capacity. The maximum amount of indebtedness authorized by this
ordinance is $11,120,000. Based on the following facts, as of the date of this ordinance, the
amount authorized herein is to be issued within the amount permitted to be issued by the City for
general municipal purposes without a vote:
(1) The assessed valuation of the taxable property within the City as
ascertained by the last preceding assessment for City purposes (i.e., the
assessed valuation for property taxes collected in the calendar year 2023)
is $3,042,683,290.
(2) The City has limited tax general obligation indebtedness, consisting of
bonds and state loans outstanding in the principal amount of $3,740,000,
which is incurred within the limit of up to 1'/2% of the value of the taxable
property within the City permitted for general municipal purposes without
a vote.
(3) The City has no voter -approved unlimited tax general obligation
indebtedness outstanding for general municipal purposes; for City -owned
water, artificial light, and sewers; or for acquiring or developing open
space, park facilities, and capital facilities associated with economic
development.
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(d) The Bonds. For the purpose of providing the funds necessary to carry out the
Project and to pay the costs of issuance and sale of the Bonds, the City Council finds that it is in
the best interests of the City and its taxpayers to issue and sell the Bonds to the Purchaser,
pursuant to the terms set forth in the Bond Purchase Agreement as approved by the City's
Designated Representative consistent with this ordinance.
Section 3. Authorization of Bonds. The City is authorized to borrow money on the
credit of the City and issue negotiable limited tax general obligation bonds evidencing
indebtedness in one or more Series in aggregate principal amount not to exceed $11,120,000 to
provide funds necessary to carry out the Project and to pay the costs of issuance and sale of the
Bonds (including, without limitation, the costs of a bond insurance premium or other credit
enhancement, if any). The proceeds of the Bonds allocated to paying the cost of the Project shall
be deposited as set forth in Section 8 of this ordinance and shall be used to carry out the Project,
or a portion of the Project, in such order of time as the City determines is advisable and
practicable.
Section 4. Description of Bonds; Appointment of Designated Representative. The
Finance Officer and the Mayor are each independently appointed and authorized to act as the
Designated Representative of the City for purposes of this ordinance, to conduct the sale of the
Bonds in the manner and upon the terms deemed most advantageous to the City, and to approve
the Sale Terms of each Series of the Bonds, with such additional terms and covenants as the
Designated Representative deems advisable, within the parameters set forth in Exhibit A, which
is attached to this ordinance and incorporated by this reference.
Section 5. Bond Registrar; Registration and Transfer of Bonds.
(a) Registration of Bonds. Each Bond shall be issued only in registered form as to
both principal and interest and the ownership of each Bond shall be recorded on the Bond
Register.
(b) Bond Registrar; Duties. Unless otherwise determined by the Finance Officer in
the Bond Purchase Agreement, the Fiscal Agent shall be appointed as initial Bond Registrar.
The Bond Registrar shall keep, or cause to be kept, sufficient books for the registration and
transfer of the Bonds, which shall be open to inspection by the City at all times. The Bond
Registrar is authorized, on behalf of the City, to authenticate and deliver Bonds transferred or
exchanged in accordance with the provisions of the Bonds and this ordinance, to serve as the
City's paying agent for the Bonds and to carry out all of the Bond Registrar's powers and duties
under this ordinance and the System of Registration. The Bond Registrar shall be responsible for
its representations contained in the Bond Registrar's Certificate of Authentication on each Bond.
The Bond Registrar may become an Owner with the same rights it would have if it were not the
Bond Registrar and, to the extent permitted by law, may act as depository for and permit any of
its officers or directors to act as members of, or in any other capacity with respect to, any
committee formed to protect the rights of Owners.
(c) Bond Register; Transfer and Exchange. The Bond Register shall contain the
name and mailing address of each Registered Owner and the principal amount and number of
each Bond held by each Registered Owner. A Bond surrendered to the Bond Registrar may be
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exchanged for a Bond or Bonds in any Authorized Denomination of an equal aggregate principal
amount and of the same Series, interest rate and maturity. A Bond may be transferred only if
endorsed in the manner provided thereon and surrendered to the Bond Registrar. Any exchange
or transfer shall be without cost to the Owner or transferee. The Bond Registrar shall not be
obligated to exchange any Bond or transfer registered ownership during the period between the
applicable Record Date and the next upcoming interest payment or redemption date.
(d) Securities Depository; Book -Entry Only Form. Unless otherwise determined by
the City's Designated Representative, the Bonds initially shall be issued and held fully
immobilized in Book -Entry Form by the Securities Depository in accordance with the provisions
of the Letter of Representations. Neither the City nor the Bond Registrar shall have any
responsibility or obligation to participants of the Securities Depository or the persons for whom
they act as nominees with respect to the Bonds regarding the accuracy of any records maintained
by the Securities Depository or its participants of any amount in respect of principal of or interest
on the Bonds, or any notice which is permitted or required to be given to Registered Owners
hereunder (except such notice as is required to be given by the Bond Registrar to the Securities
Depository). Registered ownership of a Bond initially held in Book -Entry Form, or any portion
thereof, may not be transferred except: (i) to any successor Securities Depository; (ii) to any
substitute Securities Depository appointed by the City or such substitute Securities Depository's
successor; or (iii) to any person if the Bond is no longer held in Book -Entry Form.
If the Securities Depository resigns from its functions as depository, or upon a
determination by the Finance Director to discontinue utilizing the then -current Securities
Depository, the Finance Director may appoint a substitute Securities Depository. If the Securities
Depository resigns from its functions as depository and no substitute Securities Depository can
be obtained, or if the Finance Director determines not to utilize a Securities Depository, then the
Bonds shall no longer be held in Book -Entry Form and ownership may be transferred only as
provided herein.
(e) Nothing in this ordinance shall prevent the Bond Sale Terms from providing that
a Series of the Bonds shall be issued in certificated form without utilizing a Securities
Depository, and that the Bonds of such Series shall be registered as of their Issue Date in the
names of the Owners thereof, in which case ownership may be transferred only as provided in
subsection (c), above.
(f) DTC Eligibility. To induce DTC to accept bonds issued by the City as eligible for
deposit at DTC, the City approves the form of DTC's Blanket Issuer Letter of Representations
(as it may be amended from time to time, the "Letter of Representations"), a copy of which is on
file with the Finance Officer, and authorizes the Designated Representative to execute the Letter
of Representations and to take all other acts necessary to ensure that the City's bonds are DTC
eligible.
Section 6. Form and Execution of Bonds.
(a) Form of Bonds; Signatures and Seal. Each Bond shall be prepared in a form
consistent with the provisions of this ordinance and State law. Each Bond shall be signed by the
Mayor and the City Clerk, either or both of whose signatures may be manual or in facsimile, and
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the seal of the City or a facsimile reproduction thereof shall be impressed or printed thereon. If
any officer whose manual or facsimile signature appears on a Bond ceases to be an officer of the
City authorized to sign bonds before the Bond bearing his or her manual or facsimile signature is
authenticated by the Bond Registrar, or issued or delivered by the City, that Bond nevertheless
may be authenticated, issued and delivered and, when authenticated, issued and delivered, shall
be as binding on the City as though that person had continued to be an officer of the City
authorized to sign bonds. Any Bond also may be signed on behalf of the City by any person
who, on the actual date of signing of the Bond, is an officer of the City authorized to sign bonds,
although he or she did not hold the required office on its Issue Date.
(b) Authentication. Only a Bond bearing a Certificate of Authentication in
substantially the following form, manually signed by the Bond Registrar, shall be valid or
obligatory for any purpose or entitled to the benefits of this ordinance: "Certificate Of
Authentication. This Bond is one of the fully registered City of Port Orchard, Washington,
Limited Tax General Obligation Bonds, 2023, described in the Bond Ordinance." The
authorized signing of a Certificate of Authentication shall be conclusive evidence that the Bond
so authenticated has been duly executed, authenticated and delivered and is entitled to the
benefits of this ordinance.
Section 7. Payment of Bonds. Principal of and interest on each Bond shall be
payable in lawful money of the United States of America. Principal of and interest on each Bond
held in Book -Entry Form shall be payable in the manner set forth in the Letter of
Representations. Interest on each Bond not held in Book -Entry Form shall be payable by
electronic transfer on the interest payment date, or by check or draft of the Bond Registrar
mailed on the interest payment date to the Registered Owner at the address appearing on the
Bond Register on the Record Date. However, the City is not required to make electronic
transfers except pursuant to a request by a Registered Owner in writing received on or prior to
the Record Date and at the sole expense of the Registered Owner, unless otherwise specified in
the Bond Sale Terms. Principal of each Bond not held in Book -Entry Form is payable upon
presentation and surrender of the Bond by the Registered Owner to the Bond Registrar. The
Bonds are not subject to acceleration under any circumstances.
Section 8. Funds and Accounts, Deposit of Proceeds.
(a) Bond Fund. The Bond Fund has been previously created as a special fund of the
City for the sole purpose of paying principal of and interest on the Bonds and other general
obligation bonds of the City. The principal of and interest on the Bonds shall be paid out of the
Bond Fund. All amounts allocated to the payment of the principal of and interest on the Bonds
shall be deposited in the Bond Fund as necessary for the timely payment of amounts due with
respect to the Bonds. Until needed to pay principal of and interest on the Bonds, the City may
invest money in the Bond Fund temporarily in any legal investment. Any investment earnings
shall be retained in the Bond Fund and used for the purposes of that fund. Bond proceeds in
excess of the amounts needed to pay the costs of the Project and the costs of issuance, if any,
shall be deposited into the Bond Fund.
(b) Project Fund. The Finance Officer shall designate one or more Project Funds to
be used for the purposes of paying the costs of the Project. Proceeds received from the sale and
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delivery of the Bonds shall be deposited into the Project Fund and used to pay the costs of the
Project and costs of issuance of the Bonds. Until needed to pay such costs, the City may invest
those proceeds temporarily in any legal investment, and the investment earnings shall be retained
in the Project Fund and used for the purposes of that fund, except that earnings subject to a
federal tax or rebate requirement (if applicable) may be withdrawn from the Project Fund and
used for those tax or rebate purposes.
Section 9. Redemption Provisions and Purchase of Bonds.
(a) Optional Redemption. The Bonds shall be subject to redemption at the option of
the City on terms acceptable to the Designated Representative, as set forth in the Bond Purchase
Agreement, consistent with the parameters set forth in Exhibit A.
(b) Mandatory Redemption. Each Bond that is designated as a Term Bond in the
Bond Purchase Agreement shall be called for redemption at a price equal to the stated principal
amount to be redeemed, plus accrued interest, on the dates and in the amounts as set forth in the
Bond Purchase Agreement. If a Term Bond is redeemed under the optional redemption
provisions, defeased or purchased by the City and surrendered for cancellation, the principal
amount of the Term Bond so redeemed, defeased or purchased (irrespective of its actual
redemption or purchase price) shall be credited against one or more scheduled mandatory
redemption installments for that Term Bond. The City shall determine the manner in which the
credit is to be allocated and shall notify the Bond Registrar in writing of its allocation prior to the
earliest mandatory redemption date for that Term Bond for which notice of redemption has not
already been given.
(c) Selection of Bonds for Redemption; Partial Redemption. If fewer than all of the
outstanding Bonds are to be redeemed at the option of the City, the City shall select the Series
and maturities to be redeemed. If fewer than all of the outstanding Bonds of a maturity of a
Series are to be redeemed, the Securities Depository shall select Bonds registered in Book -Entry
Form to be redeemed in accordance with the Letter of Representations, and the Bond Registrar
shall select all other Bonds to be redeemed randomly in such manner as the Bond Registrar shall
determine. All or a portion of the principal amount of any Bond that is to be redeemed may be
redeemed in any Authorized Denomination. If less than all of the outstanding principal amount
of any Bond is redeemed, upon surrender of that Bond to the Bond Registrar, there shall be
issued to the Registered Owner, without charge, a new Bond (or Bonds, at the option of the
Registered Owner) of the same Series, maturity and interest rate in any Authorized
Denomination in the aggregate principal amount to remain outstanding.
(d) Notice of Redemption. Notice of redemption of each Bond held in Book -Entry
Form shall be given in accordance with the Letter of Representations. Notice of redemption of
each other Bond, unless waived by the Registered Owner, shall be given by the Bond Registrar
not less than 20 nor more than 60 days prior to the date fixed for redemption by first-class mail,
postage prepaid, to the Registered Owner at the address appearing on the Bond Register on the
Record Date. The requirements of the preceding sentence shall be satisfied when notice has been
mailed as so provided, whether or not it is actually received by an Owner. In addition, the
redemption notice shall be mailed or sent electronically within the same period to the MSRB (if
required), to each Rating Agency, and to such other persons and with such additional information
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as the Finance Officer shall determine, but these additional mailings shall not be a condition
precedent to the redemption of any Bond.
(e) Rescission of Optional Redemption Notice. In the case of an optional redemption,
the notice of redemption may state that the City retains the right to rescind the redemption notice
and the redemption by giving a notice of rescission to the affected Registered Owners at any time
prior to the scheduled optional redemption date. Any notice of optional redemption that is so
rescinded shall be of no effect, and each Bond for which a notice of optional redemption has
been rescinded shall remain outstanding.
(f) Effect of Redemption. Interest on each Bond called for redemption shall cease to
accrue on the date fixed for redemption, unless either the notice of optional redemption is
rescinded as set forth above, or money sufficient to effect such redemption is not on deposit in
the Bond Fund or in a trust account established to refund or defease the Bond.
(g) Purchase of Bonds. The City reserves the right to purchase any or all of the
Bonds offered to the City at any time at any price acceptable to the City plus accrued interest to
the date of purchase.
Section 10. Failure To Pay Bonds. If the principal of any Bond is not paid when the
Bond is properly presented at its maturity or date fixed for redemption, the City shall be
obligated to pay interest on that Bond at the same rate provided in the Bond from and after its
maturity or date fixed for redemption until that Bond, both principal and interest, is paid in full
or until sufficient money for its payment in full is on deposit in the Bond Fund, or in a trust
account established to refund or defease the Bond, and the Bond has been called for payment by
giving notice of that call to the Registered Owner.
Section 11. Pledge of Taxes. The Bonds constitute a general indebtedness of the City
and are payable from tax revenues of the City and such other money as is lawfully available and
pledged by the City for the payment of principal of and interest on the Bonds. For as long as any
of the Bonds are outstanding, the City irrevocably pledges that it shall, in the manner provided
by law within the constitutional and statutory limitations provided by law without the assent of
the voters, include in its annual property tax levy amounts sufficient, together with other money
that is lawfully available, to pay principal of and interest on the Bonds as the same become due.
The full faith, credit and resources of the City are pledged irrevocably for the prompt payment of
the principal of and interest on the Bonds and such pledge shall be enforceable in mandamus
against the City.
Section 12. Tax Covenants; Designation of Bonds as "Qualified Tax Exempt
Obligations."
(a) Preservation of Tax Exemption for Interest on Bonds. The City covenants that it
will take all actions necessary to prevent interest on the Bonds from being included in gross
income for federal income tax purposes, and it will neither take any action nor make or permit
any use of proceeds of the Bonds or other funds of the City treated as proceeds of the Bonds that
will cause interest on the Bonds to be included in gross income for federal income tax purposes.
The City also covenants that it will, to the extent the arbitrage rebate requirements of Section 148
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of the Code are applicable to the Bonds, take all actions necessary to comply (or to be treated as
having complied) with those requirements in connection with the Bonds.
(b) Post -Issuance Compliance. The Finance Officer is authorized to approve and
implement the City's written procedures to facilitate compliance by the City with the covenants
in this ordinance, the continuing disclosure undertaking (if any), and the applicable requirements
of the Code that must be satisfied after the Issue Date to prevent interest on the Bonds from
being included in gross income for federal tax purposes.
(c) Designation of a Series of the Bonds as "Qualified Tax -Exempt Obligations."
The Designated Representative may designate any Series of the Bonds as "qualified tax-exempt
obligations" for the purposes of Section 265(b)(3) of the Code, if the following conditions are
met:
(1) the Series does not constitute "private activity bonds" within the meaning
of Section 141 of the Code;
(2) the reasonably anticipated amount of tax-exempt obligations (other than
private activity bonds and other obligations not required to be included in
such calculation) that the City and any entity subordinate to the City
(including any entity that the City controls, that derives its authority to
issue tax-exempt obligations from the City, or that issues tax-exempt
obligations on behalf of the City) will issue during the calendar year in
which the Series is issued will not exceed $10,000,000; and
(3) the amount of tax-exempt obligations, including the Series, designated by
the City as "qualified tax-exempt obligations" for the purposes of
Section 265(b)(3) of the Code during the calendar year in which the Series
is issued does not exceed $10,000,000.
Section 13. Refunding or Defeasance of the Bonds. The City may issue refunding
bonds pursuant to State law or use money available from any other lawful source to carry out a
refunding or defeasance plan, which may include (a) paying when due the principal of and
interest on any or all of the Bonds (the "defeased Bonds"); (b) redeeming the defeased Bonds
prior to their maturity; and (c) paying the costs of the refunding or defeasance. If the City sets
aside in a special trust fund or escrow account irrevocably pledged to that redemption or
defeasance (the "trust account"), money and/or Government Obligations maturing at a time or
times and bearing interest in amounts sufficient to redeem, refund or defease the defeased Bonds
in accordance with their terms, then all right and interest of the Owners of the defeased Bonds in
the covenants of this ordinance and in the funds and accounts obligated to the payment of the
defeased Bonds shall cease and become void. Thereafter, the Owners of defeased Bonds shall
have the right to receive payment of the principal of and interest on the defeased Bonds solely
from the trust account and the defeased Bonds shall be deemed no longer outstanding. In that
event, the City may apply money remaining in any fund or account (other than the trust account)
established for the payment or redemption of the defeased Bonds to any lawful purpose.
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Unless otherwise specified by the City in a refunding or defeasance plan, notice of
refunding or defeasance shall be given, and selection of Bonds for any partial refunding or
defeasance shall be conducted, in the manner prescribed in this ordinance for the redemption of
Bonds.
Section 14. Sale and Delivery of the Bonds.
(a) Manner of Sale of Bonds; Delivery of Bonds. The Designated Representative is
authorized to sell each Series of the Bonds by negotiated sale or private placement, based on the
assessment of the Designated Representative of market conditions, in consultation with
appropriate City officials and staff, Bond Counsel and other advisors. In determining the method
of sale of a Series and accepting the Sale Terms for that Series, the Designated Representative
shall take into account, among other considerations, those factors that, in the judgment of the
Designated Representative, may be expected to result in the lowest true interest cost to the City.
(b) Procedure for Negotiated Sale or Private Placement. If the Designated
Representative determines that a Series of the Bonds is to be sold by negotiated sale or private
placement, the Designated Representative shall select one or more Purchasers with which to
negotiate such sale. The Bond Purchase Agreement for each Series of the Bonds shall set forth
the Sale Terms for that Series. The Designated Representative is authorized to execute a Bond
Purchase Agreement for each Series of the Bonds on behalf of the City, so long as the terms
provided therein are consistent with the terms of this ordinance.
(c) Preparation, Execution and Delivery of the Bonds. Each Series of the Bonds will
be prepared at City expense and will be delivered to the Purchaser of such Series in accordance
with the applicable Bond Purchase Agreement, together with the approving legal opinion of
Bond Counsel regarding that Series of the Bonds.
Section 15. Official Statement; Continuing Disclosure.
(a) Preliminary Official Statement Deemed Final. The Designated Representative
shall review and, if acceptable to him or her, approve the preliminary Official Statement
prepared in connection with each sale of a Series of the Bonds to the public or through a
Purchaser as a placement agent. For the sole purpose of the Purchaser's compliance with
paragraph (b)(1) of Rule 15c2-12, if applicable, the Designated Representative is authorized to
deem that preliminary Official Statement final as of its date, except for the omission of
information permitted to be omitted by Rule 15c2-12. The City approves the distribution to
potential purchasers of the Bonds of a preliminary Official Statement that has approved by the
Designated Representative and been deemed final, if applicable, in accordance with this
subsection.
(b) Approval of Final Official Statement. The City approves the preparation of a final
Official Statement for each Series of the Bonds to be sold to the public in the form of the
preliminary Official Statement that has been approved and deemed final in accordance with
subsection (a), with such modifications and amendments as the Designated Representative deems
necessary or desirable, and further independently authorizes each of the Designated
Representative and the Mayor to execute and deliver such final Official Statement to the
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Purchaser if required under Rule 15c2-12. The City authorizes and approves the distribution by
the Purchaser of the final Official Statement so executed and delivered to purchasers and
potential purchasers of a Series of the Bonds.
(c) Undertaking to Provide Continuing Disclosure. If necessary to meet the
requirements of paragraph (b)(5) of Rule 15c2-12, as applicable to the Purchaser acting as a
participating underwriter for a Series of the Bonds, the Designated Representative is authorized
to execute a written undertaking to provide continuing disclosure for the benefit of holders of a
Series of the Bonds in substantially the form attached as Exhibit B.
Section 16. Supplemental and Amendatory Ordinances. The City may supplement or
amend this ordinance for any one or more of the following purposes without the consent of any
Owners of the Bonds:
(a) To add covenants and agreements that do not materially adversely affect the
interests of Owners, or to surrender any right or power reserved to or conferred upon the City.
(b) To cure any ambiguities, or to cure, correct or supplement any defective provision
contained in this ordinance in a manner that does not materially adversely affect the interest of
the Beneficial Owners of the Bonds.
Section 17. General Authorization and Ratification. The Mayor, the Designated
Representative and other appropriate officers of the City are severally authorized to take such
actions and to execute such documents as in their judgment may be necessary or desirable to
carry out the transactions contemplated in connection with this ordinance, and to do everything
necessary for the prompt delivery of each Series of the Bonds to the Purchaser thereof and for
the proper application, use and investment of the proceeds of the Bonds. All actions taken prior
to the effective date of this ordinance in furtherance of the purposes described in this ordinance
and not inconsistent with the terms of this ordinance are ratified and confirmed in all respects.
Section 18. Severability. The provisions of this ordinance are declared to be separate
and severable. If a court of competent jurisdiction, all appeals having been exhausted or all
appeal periods having run, finds any provision of this ordinance to be invalid or unenforceable as
to any person or circumstance, such offending provision shall, if feasible, be deemed to be
modified to be within the limits of enforceability or validity. However, if the offending
provision cannot be so modified, it shall be null and void with respect to the particular person or
circumstance, and all other provisions of this ordinance in all other respects, and the offending
provision with respect to all other persons and all other circumstances, shall remain valid and
enforceable.
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Section 19. Effective Date of Ordinance. This ordinance shall take effect and be in
force from and after its passage and five days following its publication as required by law.
PASSED by the City Council and APPROVED by the Mayor of the City of Port Orchard,
Washington, at an open public meeting thereof, this day of , 2023.
Mayor
ATTEST:
City Clerk
APPROVED AS TO FORM:
Bond Counsel
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Exhibit A
EXHIBIT A
DESCRIPTION OF THE BONDS
(a) Principal Amount. The Bonds may be issued in one or more Series and
shall not exceed the aggregate principal amount of
$11,120,000.
(b) Date or Dates. Each Bond shall be dated its Issue Date, which date may
not be later than one year after the effective date of this
ordinance.
(c) Denominations, Name, etc. The Bonds shall be issued in Authorized Denominations
and shall be numbered separately in the manner and
shall bear any name and additional designation as
deemed necessary or appropriate by the Designated
Representative.
(d) Interest Rate(s). Unless otherwise provided for in connection with a
private placement of the Bonds, each Bond shall bear
interest at a fixed rate per annum (computed on the basis
of a 360-day year of twelve 30-day months) from the
Issue Date or from the most recent date for which
interest has been paid or duly provided for, whichever is
later. One or more rates of interest may be fixed for the
Bonds such that the true interest cost to the City for each
Series of the Bonds does not exceed 6.0%.
(e) Payment Dates. Unless otherwise provided for in connection with a
private placement of the Bonds, interest shall be payable
semiannually on dates acceptable to the Designated
Representative, and principal payments shall commence
on a date acceptable to the Designated Representative
and shall be payable at maturity or in mandatory
redemption installments on dates acceptable to the
Designated Representative.
(f) Final Maturity. The final maturity of any Series of the Bonds shall be no
later than December 1, 2044.
(g) Redemption Rights. The Designated Representative may approve in the
Bond Purchase Agreement provisions for the optional
and mandatory redemption of Bonds, subject to the
following:
(1) Optional Redemption. Any Bond may be
designated as being (A) subject to redemption at
the option of the City prior to its maturity date on
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the dates and at the prices set forth in the Bond
Purchase Agreement; or (B) not subject to
redemption prior to its maturity date. If a Bond is
subject to optional redemption prior to its maturity,
it must be subject to such redemption on one or
more dates occurring not more than 101/2 years
after the Issue Date.
(2) Mandatory Redemption. Any Bond may be
designated as a Term Bond, subject to mandatory
redemption prior to its maturity on the dates and in
the amounts set forth in the Bond Purchase
Agreement.
(h) Price. The purchase price for each Series of the Bonds may not
be less than 98% or more than 140% of the stated
principal amount of that Series.
(i) Other Terms and Conditions. (1) A Series of the Bonds may not be issued if it would
cause the indebtedness of the City to exceed the
City's legal debt capacity on the Issue Date.
(2) The Designated Representative may determine
whether it is in the City's best interest to provide
for bond insurance or other credit enhancement;
and may accept such additional terms, conditions
and covenants as he or she may determine are in
the best interests of the City, consistent with this
ordinance.
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Exhibit B
Form of
UNDERTAKING TO PROVIDE CONTINUING DISCLOSURE
City of Port Orchard, Washington
Limited Tax General Obligation Bonds, 2023
The City of Port Orchard, Washington (the "City"), makes the following written
Undertaking for the benefit of holders of the above -referenced bonds (the "Bonds"), for the sole
purpose of assisting the Purchaser in meeting the requirements of paragraph (b)(5) of Rule 15c2-
12, as applicable to a participating underwriter for the Bonds. Capitalized terms used but not
defined below shall have the meanings given in Ordinance No. of the City (the "Bond
Ordinance").
(a) Undertaking to Provide Annual Financial Information and Notice of Listed
Events. The City undertakes to provide or cause to be provided, either directly or through a
designated agent, to the MSRB, in an electronic format as prescribed by the MSRB,
accompanied by identifying information as prescribed by the MSRB:
(i) Annual financial information and operating data of the type included in the final
official statement for the Bonds and described in paragraph (b) ("annual financial
information"). The timely filing of unaudited financial statements shall satisfy the
requirements and filing deadlines pertaining to the filing of annual financial
statements under subsection (b), provided that audited financial statements are to
be filed if and when they are otherwise prepared and available to the City;
(ii) Timely notice (not in excess of 10 business days after the occurrence of the event)
of the occurrence of any of the following events with respect to the Bonds:
(1) principal and interest payment delinquencies; (2) non-payment related
defaults, if material; (3) unscheduled draws on debt service reserves reflecting
financial difficulties; (4) unscheduled draws on credit enhancements reflecting
financial difficulties; (5) substitution of credit or liquidity providers, or their
failure to perform; (6) adverse tax opinions, the issuance by the Internal Revenue
Service of proposed or final determinations of taxability, Notice of Proposed Issue
(IRS Form 5701 — TEB) or other material notices or determinations with respect
to the tax status of the Bonds, or other material events affecting the tax status of
the Bonds; (7) modifications to rights of holders of the Bonds, if material;
(8) bond calls (other than scheduled mandatory redemptions of Term Bonds), if
material, and tender offers; (9) defeasances; (10) release, substitution, or sale of
property securing repayment of the Bonds, if material; (11) rating changes;
(12) bankruptcy, insolvency, receivership or similar event of the City, as such
"Bankruptcy Events" are defined in Rule 15c2-12; (13) the consummation of a
merger, consolidation, or acquisition involving the City or the sale of all or
substantially all of the assets of the City other than in the ordinary course of
business, the entry into a definitive agreement to undertake such an action or the
termination of a definitive agreement relating to any such actions, other than
pursuant to its terms, if material; (14) appointment of a successor or additional
trustee or the change of name of a trustee, if material; (15) default, event of
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acceleration, termination event, modification of terms or other similar events
under the terms of a Financial Obligation (as such term is defined below) of the
City, any of which reflect financial difficulties; and (16) incurrence of a Financial
Obligation of the City or agreement to covenants, events of default, remedies,
priority rights or other similar terms of a Financial Obligation of the City, any of
which affect security holders.
"Financial Obligation" means: (a) a debt obligation; (b) a derivative instrument
entered into in connection with, or pledged as security or a source of payment for,
an existing or planned debt obligation; or (c) guarantee of (a) or (b). The term
"Financial Obligation" does not include municipal securities as to which a final
official statement has been provided to the MSRB consistent with Rule 15c2-12
and the issuer thereof has entered into a continuing disclosure undertaking for
such municipal securities.
(iii) Timely notice of a failure by the City to provide required annual financial
information on or before the date specified in paragraph (b). The City shall not be
required to file a notice of failure to file its annual financial statements if it timely
files unaudited financial statements and commits to the prompt filing of the audit
if and when such audit becomes available.
(b) Type of Annual Financial Information Undertaken to be Provided. The annual
financial information that the City undertakes to provide in paragraph (a):
(i) Shall consist of (1) annual financial statements of the City prepared in accordance
with applicable generally accepted accounting principles applicable to
governmental units such as the City (and with the exceptions noted therein), as
such principles may be changed from time to time and as permitted by State law; (
(2) principal amount of general obligation bonds outstanding at the end of the
applicable fiscal year; (3) assessed valuation for that fiscal year; and (4) property
tax levy amounts and rates for that fiscal year;
(ii) Shall be provided not later than the last day of the ninth month after the end of
each fiscal year of the City (currently, a fiscal year ending December 31), as such
fiscal year may be changed as required or permitted by State law, commencing
with the City's fiscal year ending December 31, 20_; and
(iii) May be provided in a single or multiple documents, and may be incorporated by
specific reference to documents available to the public on the Internet website of
the MSRB or filed with the SEC.
(c) Amendment of Undertaking. This Undertaking is subject to amendment after the
primary offering of the Bonds without the consent of any Owner or holder of any Bond, or of
any broker, dealer, municipal securities dealer, participating underwriter, rating agency or the
MSRB, under the circumstances and in the manner permitted by Rule 15c2-12, including:
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(i) The amendment may only be made in connection with a change in circumstances
that arises from a change in legal requirements, change in law, or change in the
identity, nature, or status of the City, or type of business conducted;
(ii) The undertaking, as amended, would have complied with the requirements of the
rule at the time of the primary offering, after taking into account any amendments
or interpretations of the rule, as well as any change in circumstances; and
(iii) The amendment does not materially impair the interests of holders, as determined
either by parties unaffiliated with the City (e.g., bond counsel or other counsel
familiar with federal securities laws), or by approving vote of bondholders
pursuant to the terms of the Bond Ordinance at the time of the amendment.
(d) Beneficiaries. This Undertaking shall inure to the benefit of the City and the
holder of each Bond, and shall not inure to the benefit of or create any rights in any other person.
(e) Termination of Undertaking. The City's obligations under this Undertaking shall
terminate upon the legal defeasance of all of the Bonds. In addition, the City's obligations under
this Undertaking shall terminate if the provisions of Rule 15c2-12 that require the City to comply
with this Undertaking become legally inapplicable in respect of the Bonds for any reason, as
confirmed by an opinion of Bond Counsel delivered to the City, and the City provides timely
notice of such termination to the MSRB.
(f) Remedy for Failure to Comply with Undertaking. As soon as practicable after the
City learns of any failure to comply with this Undertaking, the City will proceed with due
diligence to cause such noncompliance to be corrected. No failure by the City or other obligated
person to comply with this Undertaking shall constitute a default in respect of the Bonds. The
sole remedy of any holder of a Bond shall be to take action to compel the City or other obligated
person to comply with this Undertaking, including seeking an order of specific performance from
an appropriate court.
(g) Designation of Official Responsible to Administer Undertaking. The Finance
Officer or his or her designee is the person designated, in accordance with the Bond Ordinance,
to carry out the Undertaking in accordance with Rule 15c2-12, including, without limitation, the
following actions:
(i) Preparing and filing the annual financial information undertaken to be provided;
(ii) Determining whether any event specified in paragraph (a) has occurred, assessing
its materiality, where necessary, with respect to the Bonds, and preparing and
disseminating any required notice of its occurrence;
(iii) Determining whether any person other than the City is an "obligated person"
within the meaning of Rule 15c2-12 with respect to the Bonds, and obtaining
from such person an undertaking to provide any annual financial information and
notice of listed events for that person required under Rule 15c2-12;
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(iv) Selecting, engaging and compensating designated agents and consultants,
including financial advisors and legal counsel, to assist and advise the City in
carrying out this Undertaking; and
(v) Effecting any necessary amendment of this Undertaking.
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CERTIFICATION
I, the undersigned, City Clerk of the City of Port Orchard, Washington (the "City"),
hereby certify as follows:
1. The attached copy of Ordinance No. (the "Ordinance") is a full, true and
correct copy of an ordinance duly passed at a regular meeting of the City Council of the City
held at the regular meeting place thereof on , 2023, as that ordinance appears on
the minute book of the City.
2. The Ordinance will be in full force and effect five days after publication in the
City's official newspaper, which publication date is , 2023.
3. A quorum of the members of the City Council was present throughout the
meeting and at least four of the members of the Council voted in the proper manner for the
passage of the Ordinance.
Dated: , 2023.
CITY OF PORT ORCHARD, WASHINGTON
City Clerk
Page 65 of 86
4866-8690-2619 V 5/200681-0003
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City of Port Orchard
-= Work Study Session Executive Summary
`yam■�� � IIIAI _'a aR_-
Issue Title: Council Policy Regarding Bond/Levy Endorsements
Meeting Date: September 19, 2023
Time Required: 15 Minutes
Attendees: Charlotte Archer, City Attorney; Brandy Wallace, City Clerk
Action Requested At This Meeting: Staff are seeking feedback and direction on proposed
policy language for a Council policy regarding candidate/ballot measure endorsements.
Issue: The City Council desires to adopt a policy to provide clarity for the public on the
Council's approach to endorsements or opposition of candidates/ballot measures.
Background: Historically, prior City Council's have made collective statements to endorse
certain ballot measurers, including pending bonds or levies. RCW 42.17A.555 governs the
ability of a legislative body to speak in favor of or opposition to a ballot measure or
candidate, and requires a duly noticed public hearing prior to the adoption of a resolution of
support or opposition by the body (among other requirements). Recently, this City Council
requested staff develop a policy to clarify that the Council will not speak on
candidates/ballot measures, as doing so can interfere with the independent assessment of
proposed candidates and legislation by the residents of Port Orchard. Staff reviewed similar
policies utilized by neighboring jurisdictions and developed proposed language consistent
with these concerns. Copies of sample policies from the City of Poulsbo and City of
Bremerton are attached for reference.
As the City Council's rules of procedure are codified at Port Orchard Municipal Code Chapter
2.04—so that these rules and associated policies are preserved for historical record —staff
recommends placing the proposed policy in Chapter 2.04 POMC.
Relationship to Comprehensive Plan: N/A
Recommendation: Receive briefing and provide feedback on draft policy.
Attachments: [Draft] Ordinance Adopting POMC 2.04.XXX, Regarding Endorsements
Courtesy Copy of City of Poulsbo Council Rules
Courtesy Copy of City of Bremerton Council Rules
Page 66 of 86
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ORDINANCE NO.
AN ORDINANCE OF THE CITY OF PORT ORCHARD, WASHINGTON, ADOPTING
PORT ORCHARD MUNICIPAL CODE SECTION 2.04.XXX REGARDING COUNCIL
ENDORSEMENTS; PROVIDING FOR SEVERABILITY AND PUBLICATION; AND
SETTING AN EFFECTIVE DATE.
WHEREAS, the Port Orchard City Council has adopted rules pertaining to the conduct of
the Council, including the conduct of public meetings, codified at Port Orchard Municipal Code
("POMC") Chapter 2.04; and
WHEREAS, the City Council desires to adopt a new rule to govern the City Council's
communications with the public on pending ballot measures; and
WHEREAS, RCW 42.17A.555 limits the ability of a legislative body to speak in favor of or
opposition to a ballot proposition as body, or to utilize their office or any public facilities for
these purposes; and
WHEREAS, the City Council finds that endorsing or opposing a ballot measure can
undermine voter autonomy and the electoral process; and
WHEREAS, accordingly, the City Council finds that it is in the best interests of
transparency and the citizens of the City of Port Orchard to adopt new Section 2.04.XXX POMC
to state the Council does not endorse or otherwise collectively speak on pending ballot
measures; now, therefore,
THE CITY COUNCIL OF THE CITY OF PORT ORCHARD, WASHINGTON, DO ORDAIN AS
FOLLOWS:
SECTION 1. Adoption. New Section 2.04.XXX POMC, Endorsements, is hereby adopted
to read as follows:
The City Council will not endorse or oppose a campaign for election of any person to any
office or for the promotion of or opposition to any ballot proposition placed on a ballot for the
vote of the people. Individual endorsement or opposition by individual Councilmembers shall
only be made in compliance with RCW 42.17A.555, as amended, and shall be clearly identified
as the statement of an individual citizen.
SECTION 2. Severability. Should any portion of this ordinance 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.
10738450.1 - 366922 - 0001
Page 67 of 86
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Ordinance No.
Page 2 of 2
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 _ day of September 2023.
ATTEST:
Robert Putaansuu, Mayor
SPONSOR:
Brandy Wallace, MMC, City Clerk , Councilmember
APPROVED AS TO FORM:
Charlotte A. Archer, City Attorney
PUBLISHED:
EFFECTIVE DATE:
10738450.1 - 366922 - 0001
Page 68 of 86
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Exhibit "A"
Resolution No. 2014-01
PO U LS BO CITY COUNCIL
RULES OF PROCEDURE
Page 69 of 86
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1.7 COUNCIL COMMUNICATION AND BALLOT ENDORSEMENTS:
(1) Any time Councilmembers communicate with the public, they shall
include a disclaimer that they are speaking only for themselves and
not speaking for any other member or the Council as a whole.
Personal opinions and comments which differ from the Council
majority may be expressed if the Councilmember clarifies that the
statements do not represent the Council's or City's position.
(2) The Council, as a whole, will not endorse those measures placed on
a ballot for the vote of the people. Individual endorsement by
Councilmembers shall only be made and stated as an individual
citizen.
1.8 VIOLATION OF CITY ORDINANCES: Members concerned with a violation
of a city ordinance shall contact the Mayor or appropriate department
head and explain the violation and its location. Members shall not act as
an enforcement agent.
1.9 RULES OF PROCEDURE REVIEW: The City Clerk will schedule a workshop
to review Council's Rules of Procedure during January of every even -
numbered year or at such time deemed necessary.
2. TYPES OF MEETINGS
2.1 REGULAR COUNCIL MEETINGS: The Council shall meet on the first three
Wednesdays of each month at 7:00 PM. When a Council meeting falls on
a holiday, the Council may determine an alternate day for the meeting or
cancel the meeting. The Council may reschedule regular meetings to a
different date or time by motion. The location of the meetings shall be the
Council Chambers at city hall, unless specified otherwise by a majority vote
of the Council. All regular and special meetings shall be public pursuant to
the RCW Chapter 42.30 and the Open Public Meetings Act.
2.2 SPECIAL MEETINGS: Special meetings may be called by the Mayor or any
four (4) members of the Council. The City Clerk shall prepare a notice of
the special meeting stating the time, place and business to be transacted.
The City Clerk shall attempt to notify each member of the Council, either
by telephone or otherwise, of the special meeting. The City Clerk shall
2
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Rules & Procedures
Page 1
Resolution No. 3349
Bremerton City Col
Rules & Procedui
Page 71 of 86
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deemed approved by an affirmative vote of a majority of those Council members present, unless
otherwise provided by law. Any such action shall contain only a single subject matter and may not
be amended to include a different subject.
2. Submittal: No ordinance shall be submitted to the Council for consideration until approved
as to form and legality by the City Attorney and copies have been furnished to Council Members
and the City Clerk. No such ordinance shall contain any interlineations or marginal notes.
3. Presentations: Reading of ordinances and resolutions at all Council meetings shall be
deemed sufficient by the reading of a brief synopsis of the title of the ordinance or the purpose of
the resolution. The full text of an ordinance or resolution under consideration by the Council will be
provided to any member of the public upon request.
4. Reading of Ordinances: Every ordinance shall have one reading except that, upon a
request of a Council Member, an ordinance shall have two or more readings unless otherwise
directed by the Council.
RULE 9 - MISCELLANEOUS
1. Agenda: By direction of the Council President, the Legislative Office Manager shall prepare
the Agenda for each session of the Council in regular order in accordance with these rules, which
order shall not be departed from, except as provided in these rules. Such Agenda shall include all
resolutions, ordinances and matters requested by any Council Member, or the Mayor, with no items
deleted from the Agenda except as provided in Rule 4 of these rules.
2. Public Comment on Agenda Items: Any person is provided an opportunity to comment on
any Agenda item at the time the item is discussed and prior to a vote by the Council. Such remarks
must be confined to those that are germane and relevant to the item being discussed and shall be
subject to a time limit. If numerous speakers are addressing the issue, the Council President may
further restrict speaker time. Written comments shall, to all intents and purposes, be considered the
same as oral comments.
3. Public Recognition: Any member of the public is provided an opportunity to address the
Council and the Mayor on issues not on the Agenda. No member of the public shall engage in
discussion or comment which a) is obscene, indecent or libelous; b) promotes the sale of products,
or services; c) promotes any lottery or contest which offers prizes dependent in whole or in part
upon lot or chance. It is suggested that questions from the public posed to the Council that cannot be
answered at the Council meeting should be put in writing in order to receive a written response from
the appropriate party or parties within a reasonable time. Letters addressed to City officials will not
be read in Public Recognition unless an exception is granted by Council President based upon
exceptional circumstances. Argumentative Rebuttal is not permitted during Public Recognition.
4. Ballot Issues: During the election period, beginning on the deadline for elective office or
ballot issues, or from the time an individual announces candidacy, whichever comes first, through
the November General Election, all announcements or advertising concerning candidates are
Rules & Procedures
Page 9
Resolution No. 3349
Page 72 of 86
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prohibited. Discussion of ballot issues is prohibited after the issue has qualified for the ballot.
Meetings for political parties may be announced, with the exception of fundraising events (i.e.
dinners, drawings, etc.) or meetings where the title of the function expresses support or opposition
for any candidate, political parry, or issue.
5. Public Hearings: The Council President may allocate the time allotted to Public Hearing
equally among the members of the public who wish to speak.
6. Complaints: Personal complaints, especially those of a derogatory nature against any
official or employee of the City shall not be discussed at a Council meeting. Citizens wishing to
make such complaints shall be instructed that the same should be first processed and handled
through the Mayor's office. Then, if the citizen feels appropriate action has not been taken, it shall
be proper for the complaint to be communicated in writing to the members of the Council.
Complaints against a Council Member shall be submitted to the Council President. If the complaint
is against the Council President, the complaint shall be submitted to the Vice -President.
Acceptance by the Council of a written complaint shall not, however, give rise to public discussion
thereon. The City Attorney should be consulted regarding confidentiality, rights to privacy and
other legal concerns.
7. Amendments to Rules & Procedures: Amendments to these rules shall be made by
resolution of the Council.
8. The City Clerk: The City Clerk, or duly authorized representative, shall attend all business
meetings of the City Council and maintain a permanent journal of its proceedings. All votes shall be
recorded by calling the names of each member on a positional rotation basis with Council
President's vote called last.
9. Maintain Record: All of the regular and special meetings of the City Council and each and
every part thereof shall be recorded electronically. These records shall be maintained for a period in
conformance with Chapter 40.14 RCW.
10. Prepare Minutes: Subsequent to each meeting, the Legislative Office Manager shall
prepare brief and concise action minutes of all Council meetings and submit the same to the Council
for approval. Such minutes shall contain an accurate resume of official Council actions, with
reference to all matters before it.
11. Verbatim Transcript: No member of the Council, nor any member of the administrative
staff of the City, shall be empowered or authorized to require the Legislative Office Manager to
insert in said official minutes any verbatim transcript of all or any part of the proceedings. Verbatim
transcripts shall be made a part of the minutes only when authorized by a majority vote of the entire
Council, made at the meeting wherein such verbatim request is made.
12. Non -Compliance with rules and Waiver: Failure of a Council member to challenge the
non-compliance of Council proceedings with any rule or procedure herein, prior to the vote or other
action taken on the item under consideration, shall constitute a waiver and such non-compliance
Rules & Procedures
Page 10
Resolution No. 3349
Page 73 of 86
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Guidelines for elected and appointed
officials' participation in elections activity
Elected officials and city staff should understand Public Disclosure Commission (PDC) guidelines before
participating in any elections activities, including taking a position on a ballot measure or endorsing acandidate for
political office. Below are some common examples of activities city officials may and may not do. It is not intended to
be comprehensive. A complete listing of the PDC Guidelines for Local Government Agencies in Election Campaigns
can be found on their website pdc.wa.gov. If you have any questions, please call the PDC at (360) 753-1111 or
consult your jurisdiction's legal counsel.
General provisions
Activities that are allowed:
• City employees or elected officials may, on their
own time during non -work hours (and not with
the use of city property or equipment),
participate in campaign -related activities.
• Elected officials may make statements
supporting or opposing an initiative or
referendum in response to a specific media
inquiry. All city officials may respond to requests
for factual information as part of their normal job
duty.
• City officials may use their title for identification
purposes in endorsements supporting or
opposing a candidate or an initiative or
referendum, but should not use public facilities or
equipment for communications and should make
clear that it is their personal view.
• City employees or elected officials may place on
their individual agency calendar basic
information if they are scheduled to be out of the
office to attend campaign events.
• A city may provide a facility, if it is available, for a
public forum, making arrangements for all sides
to be represented.
• A city may allow use of a public meeting space,
if it is available as normal and regular conduct,
to community groups for campaign activities. If a
city normally charges for the use of these
facilities, then the city must charge all users
equally.
• City employees may wear lapel buttons at work if
the city has a policy permitting employees to
wear political buttons.
• Private employee vehicles displaying
bumper stickers may be parked on public
property.
• City officials may encourage staff and members
of the public to vote, as long as such
encouragement routinely occurs for other
elections.
Activities that are notallowed:
• City employees or elected officials may not use
public facilities, supplies, or equipment, for any
campaign purpose. This includes phones,
copiers, mail facilities, computers, email,
websites, social media, uniforms purchased with
city funds, and paper products. City officials may
not reimbursethe city for usage of these facilities.
City officials may not use city vehicles to
transport or displaypolitical material.
• City officials may not promote or oppose a
candidate or ballot measure during work
hours. This includes gathering signatures,
distributing materials, coordinating
speakers/fundraising/ phone banks, etc. It
does not include elected official statements
on ballot measures in response to a specific
media inquiry.
• City officials may not maintain individual
campaign -related events on agency -
wide distributed calendars.
• City employees may not oppose or support an
issue or candidate before a civic group on city
work time. It must be on personal time.
• City officials may not post signs advocating for or
against candidates or ballot measures on any city
property.
• City employees or elected officials may
not pressure city employees to participate
in campaign activities for a ballot measure
or candidate, take a position, or
coordinate informational activities with
campaign work.
Association of Washington Cities 1 1076 Franklirp eq�,,Q�ympia, WA 98501 1 wacities.org 1 360.753.4137
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Ballot measures
Activities that are allowed:
• Elected officials and city staff may speak at
community forums and clubs during regularwork
hours to make an objective and fair presentation
of the facts on a ballot measure if it is normal
and regular conduct. City equipment (projector,
laptop) may be used for the presentation.
• Elected officials may attend an event anytime
during the day and give their opinion about a
ballot measure, as long as they are not being
compensated by the city or using any public
equipment, facility or vehicle (with exceptions
for specific inquiries).
• City employees or elected officials may use their
job title with the city in a letter to the editor (written
on their own time using their own computer). They
must clarify that they are expressing their own
opinion, and not speaking for the city.
• A city employee may respond to a political inquiry
by providing routine factual information if that is
part of their normal job duty.
• Members of an elected council may vote to
support or oppose an initiative or referendum. If
your council plans to vote to take a position on an
initiative or referendum, the notice of the meeting
when the vote will be taken must include the title
and number of the ballot proposition. Council
members or the public must have an equal
opportunity to express an opposing view.
• Elected officials may make statements supporting
or opposing an initiative or referendum in
response to a specific media inquiry. All city
officials may respond to requests forfactual
information as part of their normal job duty.
• A city may use its website, newsletter, or other
publications to provide citizens with information
about an issue that directly impacts the city,
looking at all available information. If you routinely
provide objective and fair facts on a ballot
measure or controversial issue, you may present
objective and fair presentation of facts on the
ballot propositions.
• If your website or newsletter publishes resolutions
or reports on council activity, you may report on
action taken on a resolution.
• Distribution of all information must be to "normal
and regular" recipients, using the publication's
regular schedule. Repeated distribution of the
same information may be considered campaign
activity by the PDC.
A city website may be used to inform citizens
about anticipated ballot measure impacts, and
allow readers to explore an issue through detailed
links, if part of normal conduct and do not link to
campaigns. Websites may be updated according
to the city's normal procedures.
City employees may provide in-house
contingency planning (what if an initiative or
referendum passes). This isn't a public activity.
This includes researching the impact of a ballot
proposition for the purpose of gathering facts.
City employees may respond to requests for
public records even if the records will be used in
support or opposition of a measure, as long as the
record isn't exempt from disclosure understate
law.
Activities that are notallowed:
• City officials may not use public facilities, supplies
or equipment, for any campaign purpose. This
includes phones, copiers, mail facilities,
computers, email, social media, websites,
uniforms purchased with city funds, and paper
products. City officials may not reimburse the city
for usage of these facilities. City officials may not
use city vehicles to transport or display political
material.
• City officials may not promote or oppose a
candidate or ballot measure during work hours.
This includes gathering signatures, distributing
materials, coordinating speakers/fundraising/
phone banks, etc. It does not include elected
official statements on ballot measures in response
to a specific media inquiry.
• City officials may not produce information that
targets specific subgroups. This does not refer to
mailing to groups that are on the city's regular
distribution list.
• City employees may not oppose or support an
issue or candidate before a civic group on city
work time. It must be on personal time.
• City officials may not have a petition available for
signature at city hall, or other city facility or
vehicle.
• City officials may not post signs advocating for or
against candidates or ballot measures on any city
property.
• City employees or elected officials may not
pressure city employees to participate in
campaign activities for a ballot measure or
candidate, take a position or coordinate
informational activities with campaign work.
Association of Washington Cities 1 1076 Franklirj:Q q�,,Q�/mpia, WA 98501 1 wacities.org 1 360.753.4137
Back to Agenda
ORCHARD
Orchard Plaza
Preliminary Concept Design
September 2023
Page 76 of 86
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Orchard Plaza I Site Context
D AM
FUTURE
r DEVELOPMENT
n
The organic nature of the plaza, inspired by the natural
formation of the shoreline, connects the individual
buildings to support a unified space.
FUTURE
DEVELOPMENT
PORT
ORCHARD
OBSERVATION
DECK
LIFT
STATION I
I'=1
KITSAP
BANK
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/7
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EXISTING
Page 77 of 86 City of Port Orchard September 2023
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Orchard Plaza I Site Context
a S ,
plaza areas
private/public
space adjacent
to plaza space
Page 78 of 86
4F"If PORT
ORCHARD
OBSERVATION
DECK r -A
r 'k
' POR
ORCHAR
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7
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City of Port Orchard September 2023
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Orchard Plaza
Site Circulation
Page 79 of 86 City of Port Orchard September 2023
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Orchard Plaza I site Concept
PORT
ORCHARD
OBSERVATION
DECK
• The space is pulled together with
organic geometries
• Flexibility is Key!
• Great space for both event days
4k and non event days
• High quality of materials - this is a
special place
• Explore, meander, places to sit,
shade ... with fun discoveries along
the way
• Views out to the water, views
within the space
UNIDRI • Coordinating with the Port, Kitsap
Bank, the CEC, Lift Station, and
Bay St. Trail
Page 80 of 86
City of Port Orchard September 2023
Tk
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Orchard Plaza I Bioretention +Seating +Discovery
a
r
public art sculpture
anchoring the entrance of
the plaza and CEC
Page 82 of 86
1 1
-
natural materials in the bioretention & seating areas provide a
functional zone with an opportunity for learning & discovery
City of Port Orchard September 2023
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Orchard Plaza I Seatina • • • • • •
iF:: '. M#��•
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Page 83 of 86
flexible
spaces
seating & planters
a'.
'ter
pavers
shade canopy
festival lighting
multi -use wooden platform
City of Port Orchard September 2023
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Orchard Plaza I Parking lot + Access + Programming
T V -6 -V
FS
F.
V
9
Page 84 of 86
M
Z
drivable, decorative pavement materials in the parking
lot provides an extension of the plaza space for
additional programming
bioretention area
to help capture
stormwater
City of Port Orchard September 2023
Back to Agenda
Orchard Plaza I Programming - Small Event Layout Example
1 PORT
_ ORCHARD
' OBSERVATION
DECK
40 tents (10'x10)
Page 85 of 86
City of Port Orchard 1 September 2023
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