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109-23 - Resolution - Moving Benefits for Venture ChartersDocuSign Envelope ID: 7AF2C5D2-513B-4A3D-A7B2-744734E82367 RESOLUTION NO. 109-23 A RESOLUTION OF THE CITY OF PORT ORCHARD, WASHINGTON, AUTHORIZING THE PAYMENT OF ADDITIONAL MOVING EXPENSES FOR VENTURE CHARTERS, INC., AS ELIGIBLE RELOCATION BENEFITS FOR THE BAY STREET PEDESTRIAN PATHWAY PROJECT, AND AUTHORIZING THE MAYOR TO EXECUTE ALL NECESSARY DOCUMENTS TO EFFECTUATE PAYMENT WHEREAS, the City previously acquired real property at 1777 Bay Street, Kitsap County Tax Parcel Nos. 4027-032-001-0102 and 4027-023-018-0003 (the "Property") to support the construction of the Bay Street Pedestrian Pathway Project (the "Project"); and WHEREAS, prior to the City's acquisition, the Property served as the corporate headquarters for the business Venture Charters, Inc. (the "Business"); and WHEREAS, in accordance with the City's Acquisition Procedures and Relocation Assistance Program, the City's Right of Way Acquisition and Relocation Consultant, Tierra Right of Way Services, Ltd. (the "Consultant"), identified additional eligible associated moving expenses resulting from the relocation of the Business; and WHEREAS, the City Council previously authorized payments of $7,743.84 and $2,670.50 for eligible moving expenses for the Business, but the costs associated with the move of the Business have exceeded those amounts; and WHEREAS, at the request of the Consultant the City did not pay the $2,670.50, and held payment until submission additional documentation for moving expenses; and WHEREAS, the Consultant has now identified a total of $6,066.15 in moving expenses as additional relocation assistance benefits owing to the Business set out on Voucher No. 3 attached hereto (which includes the previously approved $2,670.50), and staff has reviewed and approved those determinations, in conjunction with the Washington State Department of Transportation, Local Programs, serving as Contract Administrator for the Project; and WHEREAS, Voucher No. 3 also identifies $25,849.50 in eligible reestablishment expenses for the Business, which were pre -approved by the City Council via Resolution No. 030-23, by which the Council authorized up to the statutory cap of $50,000 set out at WAC 468-100-306 and 468-100-301 for reestablishment expenses and delegated authority to the Finance Director to review and approve the submitted request(s) under that cap; and WHEREAS, the Finance Director has reviewed and authorized payment of the $25,849.50 in eligible reestablishment expenses for the Business set out on Voucher No. 3, consistent with Resolution No. 030-23; and 10768084.1 - 366922 - 0001 DocuSign Envelope ID: 7AF2C5D2-513B-4A3D-A7B2-744734E82367 Resolution No. 109-23 Page 2 of 11 WHEREAS, the Port Orchard City Council finds it is in the best interest of the City to authorize the additional moving expenses relocation payment consistent with the City's Relocation Assistance Program; now, therefore, THE CITY COUNCIL OF THE CITY OF PORT ORCHARD, WASHINGTON, HEREBY RESOLVES AS FOLLOWS: THAT: It is the intent of the Port Orchard City Council that the recitals set forth above are hereby adopted and incorporated as findings in support of this Resolution. THAT: The City Council authorizes the payment of Relocation Benefits for non- residential moving expenses in an additional amount of $3,395.65, as set out in Voucher No. 3, attached hereto and incorporated herein by this reference, and authorizes the Mayor or his designee to execute all necessary documents to effectuate payment. PASSED by the City Council of the City of Port Orchard, SIGNED by the Mayor and attested by the City Clerk in authentication of such passage on this 141" day of November 2023. Er DocuSigned by: 6btJ'f P4M&SW, 3B96492E3F5847D... Robert Putaansuu, Mayor ATTEST: DocuSigned by: 388116 Brandy Wallace, MMC, City Clerk 10768084.1 - 366922 - 0001 DocuSign Envelope ID: 7AF2C5D2-513B-4A3D-A7B2-744734E82367 Tt el"I"ev A C L S C Q M P A N Y To: Nick M. Bond, AICP, Development Director From: Marge Bailey, Project Manager Paula Ferreira -Smith, Relocation Agent Date: October 9, 2023 Project Title: City of Port Orchard Pedestrian Enhancement Project (Mosquito Fleet Trail) Parcel No.: 4027-032-001-0102 & 4027-023-018-0003 Displacee: Venture Charters, Inc., Business Relocation Federal Aid No: STPE-STPUS-0166(008) Displacee No.: 05 Subject: Moving and Reestablishment Expenses Recommendation and Reimbursements Claim Number 3 Voucher Number 3 Background Information As part of the Bay Street Pedestrian Project. The City of Port Orchard purchased the above properties in full. This acquisition triggered a business displacement and residential relocation. Venture Charters, Inc. is a day tour fishing business offering special event cruises and funeral charter boat services. They also offer a vacation rental with waterfront access. It is owned and operated by Randy Jones and Franklin Joseph Rusk. To qualify for business relocation, the displaced business owner is required to meet the definition of a displaced business by providing a completed copy of the most recent two years income tax returns. The displaced business has provided a completed copy of the most recent two years income tax returns that confirm they claim the business income, therefore they qualify as a displaced business and are eligible for business re-establishment and moving expenses. The displaced business, Venture Charters, Inc. moved to a replacement site at 1116 Shorewood Drive, Bremerton, WA. The replacement site contains an area for an Accessory Dwelling Unit (ADU). The ADU is located in the lower level of the owner's single-family dwelling. The displacee searched extensively for a home with an ADU but was unable to find one suited for their business. Utilizing their re-establishment, is it reasonable for the displacee to modify this home to re-establish Venture Charters, Inc. vacation rental property. After submittal of advance payment request for business re-establishment repairs, the City of Bremerton changed the Accessory Dwelling Unit (ADU) requirements requiring additional permitting. Codes Requirements: All repairs conducted per City of Bremerton code requirements. The City adopted version (2018) as amended by the Washington State Building Code Council including: WA State Energy Code (WSEC)UPC: Uniform Plumbing Code WA State Barrier Free Code (IBC) Chapter 11 and A117.1-2009) WA State Ventilation Code Tierra Right of Way Services, Ltd. Leslie Findlay, Designated Broker #27965 8685 Martin Way East, Suite 203 • Lacey, Washington 98516 • Phone: 206.363.1556 °"°"•"" Right of Way • Cultural Resources • Environmental Planning Toll Free: 800.887.0847 9 www.tierra-row.com DocuSign Envelope ID: 7AF2C5D2-513B-4A3D-A7B2-744734E82367 IBC: International Building Code IRC: International Residential Code IFC: International Fire Code IMC: International Mechanical Code IFGC: International Fuel and Gas Code Discussion On October 3, 2023, Venture Charters, Inc. submitted a relocation payment request for the re- establishment of their business and provided invoices for a total of $58,607.39. Additional Moving Expenses Vendor Description Invoice # Eligible Determination Eligible Amount per Hederra LLC bda Electrical repair code 2956 $1,400.00 WAC 468-100-301(7)(c) Murphy's Heating requirements for and Cooling refrigerator, stove and microwave. Hederra LLC bda Hot Tub -Electrical 2956 $250.00 WAC 468-100-301(7)(c) Murphy's Heating reconnect and Cooling Hederra LLC bda Plumbing water intake 2956 $800.00 WAC 468-100-301(7)(c) Murphy's Heating drainage -Electrical 220 and Cooling supply to hot tub Hederra LLC bda Electrical Permits 2957 $2,500.00 WAC-468-100-301(7)(k) Murphy's Heating required by City of and Cooling Bremerton and Labor and Industry Hederra LLC bda Plumbing water intake 2956 $600.00 WAC 468-100-301(7)(c) Murphy's Heating and drainage -for kitchen and Cooling appliances Sub -total $5,550.00 Taxes $516.15 Total Eligible Related Non-residential Moving Expenses: $6,066.15 Additional Moving Expense Recommendation Venture Charters, Inc. is eligible as a non-residential displacee as defined in WAC 468-100-002(24). 1 recommend Venture Charters, Inc. be reimbursed $6,066.15 for the additional moving expenses, per WAC 468-100-301(7), and determine them to be reasonable and necessary. Business Reestablishment Expenses The following table reflects a breakdown of expenses in the amount of $25,849.50 for the cost of eligible repairs, modifications, construction, to the replacement site. These expenses have been reviewed and determined to be reasonable and necessary for the re-establishment of the business, per WAC 468-100- 301(a)(b)(d). Vendor Description Invoice Eligible Determination # Amount Eligible per 2 DocuSign Envelope ID: 7AF2C5D2-513B-4A3D-A7B2-744734E82367 Hederra LLC bda Lower -level interior 2956 $250.00 WAC-468-100- Murphy's Heating and door opening -WA -IBC 306(1)(a) Cooling Hederra LLC bda Elimination of the 2956 $2,800.00 WAC-468-100- Murphy's Heating and lower stairway. Close 306(1)(a) Cooling up stairway for fire egress code WA -IBC Hederra LLC bda Lower -level interior 2956 $7,500.00 WAC-468-100- Murphy's Heating and sheet rock adaption to 306(1)(a) Cooling 5/8 fire blocking per IBC and IRC Section R302 Hederra LLC bda Electrical — Box panel 2956 $5,000.00 WAC-468-100- Murphy's Heating and separation sub panel 306(1)(a) Cooling per IRC, E601.1, .2, .6, .7 Hederra LLC bda Electrical Supply to 2956 $2,000.00 WAC-468-100- Murphy's Heating and lower level. per IRC, 306(1)(a) Cooling E601.1, .2, .6, .7 Hederra LLC bda Labor for painting, per 2956 $600.00 WAC-468-100- Murphy's Heating and IRC-R702.3.1, .1.1, 3.2 306(1)(a)(b)(d) Cooling Hederra LLC bda Interior paint and 2956 $500.00 WAC-468-100- Murphy's Heating and repairs, paint, and 306(1)(a)(b)(d) Cooling drywall per IRC- R702.3.1, .1.1, 3.2 Hederra LLC bda Flooring repairs per 2956 $1,500.00 WAC-468-100- Murphy's Heating and IRC-R702.3.1, .1.1, 3.2 306(1)(a)(b)(d) Cooling Hederra LLC bda Parking equipment 2956 $2,500.00 WAC-468-100- Murphy's Heating and rental, COB, per WA- 306(1)(a) Cooling IBC and IRC Hederra LLC bda Traffic control -delivery 2956 $900.00 WAC-468-100- Murphy's Heating and material COB, per WA- 306(1)(a) Cooling IBC and IRC Hederra LLC bda Removal and disposal 2956 $600.00 WAC-468-100- Murphy's Heating and of waste due to remodel 306(1)(a)(b)(d) Cooling per IBC Hederra LLC bda Parking -Repairs COB, 2956 $7,668.25 WAC-468-100- Murphy's Heating and per WA -IBC and IRC 306(1)(a)(b)(d) Cooling Hederra LLC bda Parking -commercial 2956 $12,000.00 WAC-468-100- Murphy's Heating and grade -Paving COB, per 306(1)(a)(b)(d) Cooling WA -IBC and IRC Hederra LLC bda Contractor 2956 $300.00 WAC-468-100- Murphy's Heating and administrative fee- 306(1)(b)(d) Cooling Others IBC Hederra LLC bda Driving and 2956 $600.00 WAC-468-100- Murphy's Heating and transportation fuel cost 306(1)(b)(d) Cooling for 2 trucks -Others IBC DocuSign Envelope ID: 7AF2C5D2-513B-4A3D-A7B2-744734E82367 Total Eligible Business Reestablishment Expenses: $44,718.25 Minus Advanced Payment -($21,068.20) =$23,650.05 In addition, COPO Sales Tax (9.3%) Taxes $2,199.45 Total Claim: $25,849.50 Ineligible Expenses Capital Improvements Vendor Description Invoice# Ineligible Determination Amount Hederra LLC dba Sink, plumbing, 2956 $800.00 Ineligible per WAC 468- Murphy's Heating supplies and drains for 100-306(2)(a) and Cooling sink connection. Hederra LLC bda Door to Kitchen -Door 2956 $800.00 Ineligible per WAC 468- Murphy's Heating and frame removal 100-306 (2)(a) and Cooling Hederra LLC bda Elimination of existing 2956 $4,000.00 Ineligible per WAC 468- Murphy's Heating HVAC system 100-306 (2)(a) and Cooling Hederra LLC bda Counter -Interior- 2956 $400.00 Ineligible per WAC 468- Murphy's Heating Installation 100-306 (2)(a) and Cooling Total Ineligible Amount: $6,000.00 Reestablishment Recommendation Venture Charters, Inc. qualifies as a displaced business and was required to relocate due to the City of Port Orchard Bay Street Pedestrian Pathway Project. The business is eligible as a non-residential displacee as defined in WAC 468-100-002(24). The submitted invoices and receipts for $25,849.50 for modification to the replacement site per WAC 468-100-306(1)(a)(b)(d) to accommodate business operation are eligible for reimbursement up to $50,000.00. The invoices provided are reasonable and necessary for the re- establishment of the business. This payment recommendation is in support for the displaced owner to complete the necessary repairs. Final photographs and final City Bremerton occupancy permit should be submitted by the business owner. No additional payments are pending. I recommend Venture charter be reimbursed for $25,849.50 for business reestablishment per WAC 468- 100-306(1)(a)(b)(d) as reasonable and necessary. The undersigned has reviewed and approved the above business reestablishment in the amount of $25,849.50 and moving expense in the amount of $6,066.15 payment recommendation for Venture Charter badn t : F%; v dum provided referenced invoices, and documentation to support the claim. 10/17/2023 Date Development Director City of Port Orchard 4 DocuSign Envelope ID: 7AF2C5D2-513B-4A3D-A7B2-744734E82367 Relocation Assistance Voucher No. 3 Venture Charters, Inc Agency Name: Nick M. Bond, AICP, Development Director City of Port Orchard 216 Prospect Street Port Orchard WA 98366 I hereby certify under penalty of perjury that the items and amounts fisted herein are proper charges against the Agency. That the same or any part thereof has not been paid, and that I am authorized to sign for the claimant. I further certify that I am a citizen of the United States ofAmerica or am an alien lawfully present in the United States of America. Displaced Perscn(s) or Claimant Hedera LLC dba Murphy's Heating and Cooling 1313CorbetDr.NW Bremerton, WA 98312 Blue ihk) for each clam R' i. fiefs _'7 J-L�. Date ILI L ) Rar* A. Jones E' Project Title: City of Port Orchard Pedestrian Enhancement Project (Mompito Fleet Trail Parcel No.: 4027-032-001-0102 & 4027- 1 Displacee Displacee Name: Venture Charters, Inc 023-018-0003 No.: 5 Re incement Housing Payments PriceDifferential 904a owner for amountsuptoS31,000 Date Parcel Vacated: 8/10/1023. SAmoants $0.00 MIDP IncreasedMortgageInterestPaymcnt $0.00 Incidentals CJN75 I JN7 $0.00 Last Resort H — owner for amounts over $11,000 $0.00 Rental SuMement — 90-day tenants and certain others amounts u to $7 00 $0.00 Down Payment Assistance — 90 tenants and certain others $0.00 Last Resort Housin — tenants amount over S7 00 $0.00 Comments I other describe): S0.00 Moving Expense Payments $0.00 Self Move I Schedule Payments —_residential W00 Actual Ex Commercial Move/Actual Cost Self Move —residential move bid cost) $0.00 Fixed Payment in lieu of a0 other moving - Non -Residential $0.00 Actual Costs 1 Self Move 1 Commercial - Non -Residential $6,066.15 Re-establishment Costs - Non Residential: Relocation total Payment. $44,719.15 minus advance payment of $21068.20. Based on the eligible pottion of the total invoice of 158,60739. $25,949.50 Personal Property Only 50.00 Comments 1 Other {describe}: 0.00 Deductions: ; $0.00 TOTAL 4 $31,915AS Invoice No.: Date: Amount: S ACCOUNT CLASSIFICATION JOB NUMBER ACCOUNT CONTRO TOTALS PARCEL WORK OP L ORO. NO. NON PART DOLLARS WORK ORDER GRP OBJ SUB SECTION g TOTAL 4 S31,915AS RELOCATION SPECIALIST: Paula Ferreira- DAT$: HY1212023 RELOCATION SUPERVISOR DATE:10112=3 Smith Z"4J�.A�. V'�JU1�JlllJQ.. Maree R. Bailev. Pmiect Manager I, the undersigned, certify that the above information is correct, that the payment is necessary for the above relocation assistance, that it has been performed in accordance with prescribed procedures, and that this payment is not considered income or resources to a "DISPLACED PERSON" pursuant to Section 216 of Public Law 9I -046 and RCW 8.26.115.: Warrant Register No.: Voucher No.: Nick M. Bond, AICP DATE Development Director RES 537 Rev. 612019 DocuSign Envelope ID: 7AF2C5D2-513B-4A3D-A7B2-744734E82367 Hedera LLC dba Murphy's Heating and Cooling 1313 Corbet Dr Nw Bremerton, WA 98312 3609574605 murphhvac@msn.com BILL TO SHIP TO Randy Jones Randy Jones Venture Charters Venture Charters Door to kitchen 800.00T Door and Frame Removal lower -level hardware to be provided by business owner Randy Jones Lower -level interior door opening code requirements 250.00T Elimination lower stairway 2,800.00T Close up stairway for fire egress code Lower -level interior sheet rock adaption to 5/8 fire blocking for business code updates. 7,500.00T Seperate the existing HVAC system. Create separate HVAC system installation of new HVAC 4,000.00T Provided by business owner Randy Jones. Counter 400.00T Interior counter installation LABOR- 600.00T plumbing repair code requirements Electrical- 5,000.00T Box Panel separation sub panel Electrical 2,000.00T Electrical supply to lower level Electrical repair code change requirements for refrigerator stove and microwave. 1,400.00T Sink 800.00T plumbing, supplies and drains for sink connection. Labor for painting 600.00T Interior paint and repairs 500.00T paint, for drywall Flooring repairs 1,500.00T Parking 2,500.00T Equipment rental for parking code update per city of Bremerton business requirements. Transportation and 900.00T Traffic control for delivery of materials and equipment HEDERA LLC dba MURPHY'S HEATING AND COOLING https://sites.google.com/site/murphhvac/home DocuSign Envelope ID: 7AF2C5D2-513B-4A3D-A7B2-744734E82367 Hot Tub to lower -level unit 250.00T installation of provided used hot tub Plumbing water intake drainage for hot tub 800.00T Electrical 220 supply for hot tub REMOVAL AND DISPOSAL OF- 600.00T all material waste for construction code updates Parking 7,668.25T Bremerton municipal code 20.48 Relocation of retaining wall right of entrance and addition of 2 feet of left side to expand driveway entrance for emergency vehicle access. - Install +/- 16 LF of channel drain approximately 2' feet out from garage and 2 tenths lower than garage slab Tie into downspout with 4" line at garage corner Remove +/- 150 Sq Ft ,10' X 15", of asphalt in driveway Load spoils and dispose at recycle Raise water meter box at top of driveway Grade and shape existing gravel to desired slope Install top course as needed up to 5 tons PAVE for Venture Charters parking only. parking left side of garage, entrance to property, and 12,000.00T center of driveway +/- 3,100 Sq Ft Install and process 2" of HMA class 1/2" commercial grade up to 40 tons Hand tamp and finish edges Shore up gravel shoulders Hat tar seams as needed Contractor Administrative fee 300.00T Driving and transportation fuel costs for 2 trucks 600.00T BIDS ARE ONLY VALID FOR 30 DAYS DUE TO LABOR AND MATERIAL SHORTAGS. IF O.00T ACCEPTED INVOICE TO BE SUBMITTED UPON COMPLETION OF REPAIRS AND CITY APPROVAL. ALL LATE PAYMENTS ARE SUBJECT TO 7.5% FEE. Randy Jones of Venture Charters is to pay Hedera LLC 40% of bid SUBTOTAL 53,768.25 provided up front for material and expenses. As we are ready to begin TAX 4,839.14 work. TOTAL 58,607.39 HEDERA LLC dba MURPHY'S HEATING AND COOLING https://sites.google.com/site/murphhvac/home DocuSign Envelope ID: 7AF2C5D2-513B-4A3D-A7B2-744734E82367 BILL TO Randy Jones Venture Charters Hedera LLC dba Murphy's Heating and Cooling 1313 Corbet Dr Nw Bremerton, WA 98312 3609574605 murphhvac@msn.com SHIP TO Randy Jones Venture Charters Building and Electrical permits for new construction project. City of Bremerton Permit #BB23 00157 Labor and Industries Permit #4153004E 2,500.00 SUBTOTAL 2,500.00 TAX 0.00 TOTAL 2,500.00 HEDERA LLC dba MURPHY'S HEATING AND COOLING https://sites.google.com/site/murphhvac/home DocuSign Envelope ID: 7AF2C5D2-513B-4A3D-A7B2-744734E82367 WAC 468-100-306 Reestablishment expenses —Nonresidential moves. In addition to the payments available under WAC 468-100-301 and 468-100-303, a small business, as defined in WAC 468-100-002(24), farm or nonprofit organization is entitled to receive a payment, not to ex- ceed fifty thousand dollars, for expenses actually incurred in relo- cating and reestablishing such small business, farm or nonprofit or- ganization at a replacement site. (1) Eligible expenses. Reestablishment expenses must be reasona- ble and necessary, as determined by the agency. They include, but are not limited to, the following: (a) Repairs or improvements to the replacement real property as required by federal, state or local law, code or ordinance. (b) Modifications to the replacement property to accommodate the business operation or make replacement structures suitable for con- ducting the business. (c) Construction and installation costs for exterior signing to advertise the business. (d) Redecoration or replacement of soiled or worn surfaces at the replacement site, such as paint, paneling, or carpeting. (e) Advertisement of replacement location. (f) Estimated increased costs of operation during the first two years at the replacement site for such items as: (i) Lease or rental charges; (ii) Personal or real property taxes; (iii) Insurance premiums; and (iv) Utility charges, excluding impact fees. (g) Other items that the agency considers essential to the rees- tablishment of the business. (2) Ineligible expenses. The following is a nonexclusive listing of reestablishment expenditures not considered to be reasonable, nec- essary, or otherwise eligible: (a) Purchase of capital assets, such as, office furniture, filing cabinets, machinery, or trade fixtures. (b) Purchase of manufacturing materials, production supplies, product inventory, or other items used in the normal course of the business operation. (c) Interest on money borrowed to make the move or purchase the replacement property. (d) Payment to a part-time business in the home which does not contribute materially to the household income. (e) Interior or exterior refurbishments at the replacement site which are for aesthetic purposes, except as provided in WAC 468-100-306 (1)(d). [Statutory Authority: Chapter 8.26 RCW. WSR 06-02-068, § 468-100-306, filed 1/3/06, effective 2/3/06; WSR 04-08-041, § 468-100-306, filed 3/31/04, effective 5/1/04. Statutory Authority: Chapter 8.26 RCW and WSR 89-17-048 (Order 121). WSR 01-02-027, § 468-100-306, filed 12/22/00, effective 1/22/01. Statutory Authority: Chapter 8.26 RCW. WSR 89-17-048 (Order 121), § 468-100-306, filed 8/14/89, effective 9/14/89.1 Certified on 2/20/2023 WAC 468-100-306 Page 1