10/13/2020 - Regular - PacketCity of Port Orchard Council Meeting Agenda
October 13, 2020
6:30 p.m.
Pursuant to the Governor’s “Stay Home - Stay Safe” Order, the City will take actions on
necessary and routine business items.
The City is prohibited from conducting meetings unless the meeting is NOT conducted in-person
and instead provides options for the public to attend through telephone, internet or other
means of remote access, and also provides the ability for persons attending the meeting (not in-
person) to hear each other at the same time. Therefore;
Remote access only
Link: https://us02web.zoom.us/j/83591724371
Zoom Meeting ID: 835 9172 4371
Zoom Call-In: 1 253 215 8782
1.CALL TO ORDER
A.Pledge of Allegiance
2.APPROVAL OF AGENDA
3.CITIZENS COMMENTS
(Please limit your comments to 3 minutes for items listed on the Agenda and that are not for a Public
Hearing. When recognized by the Mayor, please state your name for the official record)
4.CONSENT AGENDA
(Approval of Consent Agenda passes all routine items listed below, which have been distributed to each
Councilmember for reading and study. Consent Agenda items are not considered separately unless a
Councilmember so requests. In the event of such a request, the item is returned to Business Items.)
A.Approval of Vouchers and Electronic Payments
B.Approval of Payroll and Direct Deposits
C.Adoption of an Ordinance Amending Port Orchard Municipal Code Chapter
10.12 Establishing Regulations and Fees Related to Parking, Stopping, and
Standing in Certain Areas of the City (Dorsey) Page 3
D.Ratification of Mayor’s Signature on Grant No. GVL24702 with DOH for the
McCormick Woods/Port Orchard Water Systems Consolidation Study (Dorsey)
Page 24
E.Approval of a Contract with Lakewood Police Department for Facility Use of
the City’s Firearms Range (M. Brown) Page 41
F.Approval of the September 15, 2020, Council Work Study Session Meeting
Minutes Page 46
G.Excusal of Councilmember Rosapepe Due to Personal Obligations
5.PRESENTATION
A.Revenue Sources (Crocker)
6.PUBLIC HEARING
A.Adoption of an Ordinance Proposing Revisions to Port Orchard Municipal Code
Chapter 3.48 Multifamily Property Tax Exemption (Bond) Page 49
7.BUSINESS ITEMS
A.Adoption of an Ordinance Revising Port Orchard Municipal Code Chapter 3.48
Multifamily Tax Property Tax Exemption (Bond) Page 84
Mayor:
Rob Putaansuu
Administrative Official
Councilmembers:
Bek Ashby
Finance Committee
Economic Development & Tourism Committee
Transportation Committee, Chair
KRCC/KRCC PlanPol-alt /KRCC TransPol
PSRC-alt/PSRC TransPOL-Alt/PRTPO
Shawn Cucciardi
Finance Committee
E/D & Tourism Committee, Chair
Kitsap Economic Development Alliance
Fred Chang
Economic Development & Tourism Committee
Land Use Committee
Jay Rosapepe (Mayor Pro-Tempore)
Utilities/Sewer Advisory Committee
Land Use Committee
Transportation Committee
Lodging Tax Advisory Committee, Chair
KRCC-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
Mark Dorsey, P.E.
Director of Public Works/City Engineer
Tim Drury
Municipal Court Judge
Noah Crocker, M.B.A.
Finance Director
Matt Brown
Police Chief
Brandy Rinearson, MMC, CPRO
City Clerk
Meeting Location:
Council Chambers, 3rd Floor
216 Prospect Street
Port Orchard, WA 98366
Contact us:
(360) 876-4407
cityhall@cityofportorchard.us
Please turn off cell phones during meeting and hold your questions for staff until the meeting has been adjourned.
The Council may consider other ordinances and matters not listed on the Agenda, unless specific notification period is required.
Meeting materials are available on the City’s website at: www.cityofportorchard.us or by contacting the City Clerk’s office at (360) 876-4407.
The City of Port Orchard does not discriminate on the basis of disability. Contact the City Clerk’s office should you need special accommodations.
October 13, 2020, Meeting Agenda Page 2 of 2
B. Adoption of an Ordinance Adopting Amendments to Port Orchard Municipal Code Chapter 20.26
Development Agreements (Bond) Page 102
C. Adoption of a Resolution Approving a Contract with the South Kitsap School District for COVID-19 Relief
(Archer) Page 116
D. Adoption of a Resolution Approving an Amendment to Contract No. 060-20 with the Department of
Commerce Related to the COVID-19 CARES Act Funds (Crocker) Page 125
E. Adoption of a Resolution Amending Resolution No. 029-20 to Increase the Total Amount of Available Grant
Funding, and to Approve an Amendment to Contract No. 063-20 with the Kitsap Economic Development
Alliance for Administration of the Port Orchard CARES Small Business Relief Grant Program (Crocker) Page
150
F. Adoption of a Resolution Approving a Contract with Rice Fergus Miller for the 2020-2021 Schematic Design
(30%) City Hall Improvement Project (Dorsey) Page 165
G. Approval of the September 22, 2020, Council Meeting Minutes Page 184
8. DISCUSSION ITEMS (No Action to be Taken)
A. Biennial Budget (Crocker)
9. REPORTS OF COUNCIL COMMITTEES
10. REPORT OF MAYOR
11. REPORT OF DEPARTMENT HEADS
12. CITIZEN COMMENTS
(Please limit your comments to 3 minutes for any items not up for Public Hearing. When recognized by the Mayor, please state your name for
the official record)
13. EXECUTIVE SESSION: Pursuant to RCW 42.30.110, the City Council may hold an executive session. The topic(s) and the session
duration will be announced prior to the executive session.
14. ADJOURNMENT
COMMITTEE MEETINGS Date & Time Location
Finance October 13, 2020; 5:00pm - 2nd
Tuesday of each month
Remote Access
Economic Development and Tourism TBD Remote Access
Utilities October 20, 2020; 5:00pm - 3rd
Tuesday of each month
Remote Access
Sewer Advisory TBD, 2020 Remote Access
Land Use November 4, 2020; 9:30am Remote Access
Transportation October 27, 2020; 5:00pm; 4th Tuesday
of each month
Remote Access
Lodging Tax Advisory October, 2020 Remote Access
Festival of Chimes & Lights October 19, 2020; 3:30pm Remote Access
Outside Agency Committees Varies Varies
CITY COUNCIL GOOD OF THE ORDER
City of Port Orchard
216 Prospect Street, Port Orchard, WA 98366
(360) 876-4407 • FAX (360) 895-9029
Agenda Staff Report
Agenda Item No.: Consent Agenda 4C Meeting Date: October 13, 2020
Subject: Adoption of an Ordinance Amending Port Prepared by: Mark R. Dorsey, P.E.
Orchard Municipal Code Chapter 10.12 Public Works Director
Establishing Regulations and Fees Related to Atty Routing No.: N/A
Parking, Stopping or Standing in Certain Atty Review Date: N/A
Areas of the City
Summary: This Ordinance helps to address city employee parking needs.
Relationship to Comprehensive Plan: None
Recommendation: Staff recommends adoption of Ordinance No. 026-20, thereby updating POMC Chapter
10.12.270 and 10.12.500 regarding Parking, Stopping or Standing in Certain Areas of the City.
Motion for Consideration: I move to adopt Ordinance No. 026.20, thereby updating POMC Chapter
10.12.270 and 10.12.500 regarding Parking, Stopping or Standing in Certain Areas of the City, with final
form approved by the City Attorney.
Fiscal Impact: None.
Alternatives: Do not approve and provide further direction to staff.
Attachments: Ordinance with POMC 10.12 Redline and Ordinance Final Version.
Page 3 of 189
ORDINANCE NO. 026-20
AN ORDINANCE OF THE CITY OF PORT ORCHARD, WASHINGTON, RELATING TO
PARKING ON PUBLIC STREETS; AMENDING SECTION 10.12.270 AND 10.12.500 OF
THE PORT ORCHARD MUNICIPAL CODE, AND ESTABLISHING AN EFFECTIVE DATE.
WHEREAS, WAC 308.330.270 authorizes the City to adopt regulations to prohibit,
regulate or limit stopping, standing or parking of vehicles in the City; and
WHEREAS, Port Orchard Municipal Code (POMC) Section 10.12.080(1) authorizes the
City Council to from time to time, establish parking prohibitions and restrictions on portions of
certain specified streets; and
WHEREAS, the City Council deems it in the best interest of the City of Port Orchard to
periodically review and update such regulations; and
WHEREAS, the City Council chose to codify the parking regulations in order to aid the
public in its ability to access and review said regulations; and
WHEREAS, specific revisions to POMC Section 10.12.270, Stopping, standing and
parking, and POMC Section 10.12.500 Parking prohibited at all times, are hereby proposed by
staff; and
WHEREAS, the City Council has reviewed the proposed amendments and believes it to
be in the best interests of the City to enact the proposed amendments; now, therefore
THE CITY COUNCIL OF THE CITY OF PORT ORCHARD, WASHINGTON, DO ORDAIN AS
FOLLOWS:
SECTION 1. Section 10.12.270 of the Port Orchard Municipal Code is hereby amended
to read as follows:
10.12.270 Stopping, standing and parking.
1) Except when necessary to avoid conflict with other traffic, or in compliance with law
or the directions of a police officer or official traffic control device, no person shall:
(a) Stop, park, or leave standing any vehicle, whether attended or unattended, upon the
roadway.
(b) Stop, stand, or park a vehicle:
(i) On the roadway side of any vehicle stopped or parked at the edge of a curb of a
street;
(ii) On a sidewalk, curb, or street planting strip;
(iii) Within an intersection;
(iv) On a crosswalk;
Page 4 of 189
Ordinance No. 026-20
Page 2 of 10
(v) Alongside or opposite any street excavation or obstruction when stopping, standing,
or parking would obstruct traffic;
(vi) Upon any bridge or other elevated structure upon a highway or within a highway
tunnel;
(vii) On any railroad tracks; or
(viii) In the area between roadways of a divided highway including crossovers.
(c) Stand or park a vehicle, whether occupied or not, except momentarily to pick up or
discharge a passenger or passengers:
(i) In front of a public or private driveway or within five feet of the end of the curb radius
leading thereto;
(ii) Within 15 feet of a fire hydrant;
(iii) Within 20 feet of a crosswalk;
(iv) Within 30 feet upon the approach to any flashing signal, stop sign, yield sign, or
traffic control signal located at the side of a roadway;
(v) Within 20 feet of the driveway entrance to any fire station and on the side of the
street opposite the entrance to any fire station within 75 feet of said entrance when properly
posted; or
(vi) Within 15 feet of a clearly visible mailbox which is located directly adjacent to
curbside or right-of-way., between the hours of 8:00 a.m. and 6:00 p.m., except on Sundays and
holidays.
(d) Park a vehicle, whether occupied or not, except temporarily for the purpose of and
while actually engaged in loading or unloading property or passengers:
(i) Within 50 feet of the nearest rail of a railroad crossing.
(2) It shall be unlawful for any person to reserve or attempt to reserve any portion of a
highway for the purpose of stopping, standing, or parking to the exclusion of any other like
person, nor shall any person be granted such right.
(3) Except as otherwise provided in this section, every vehicle stopped or parked upon a
two-way roadway shall be so stopped or parked with the right-hand wheels parallel to and
within 12 inches of the right-hand curb or as close as practicable to the right edge of the right-
hand shoulder.
(4) Except when otherwise provided by this section, every vehicle stopped or parked
upon a one-way roadway shall be so stopped or parked parallel to the curb or edge of the
roadway, in the direction of authorized traffic movement, with its right-hand wheels within 12
inches of the right-hand curb or as close as practicable to the right edge of the right-hand
shoulder, or with its left-hand wheels within 12 inches of the left-hand curb or as close as
practicable to the left edge of the left-hand shoulder.
(5) Subsections (1) through (4) of this section do not apply to the driver of any vehicle
that is disabled in such manner and to such extent that it is impossible to avoid stopping and
temporarily leaving the vehicle in such position. The driver shall nonetheless arrange for the
prompt removal of the vehicle.
(6) Violation of this section is a Class A parking infraction.
Page 5 of 189
Ordinance No. 026-20
Page 3 of 10
SECTION 2. Section 10.12.500 of the Port Orchard Municipal Code is hereby amended
to read as follows:
10.12.500 Parking prohibited at all times.
When signs are erected by the city engineer giving notice thereof, no person shall park a vehicle
at any time upon any of the streets or parts of streets described as follows:
1. Ada Street: on the north side of Ada
Street, in front of 825 Ada
Street.
2. Advantage Avenue: on the west side of the
north 350 feet of roadway
and on the left-hand side,
as the traffic flows, of the
remainder of the street.
3. Andasio Loop SE: on the outside curb along
the entire loop.
4. Arnold Avenue E.: along the west side of
Arnold Avenue E., from
the Lawrence Street
intersection, to the
northeast towards Bay St.,
100 feet.
5. Arnold Avenue E.: along the east side of
Arnold Avenue E., from
the Bay Street
intersection, to the south
66 feet.
6. Bay Street: on both sides, from the
traffic signal on SR 166
(Bay/Maple Street) for a
distance of 200 feet
northeast of Guy Wetzel
Street.
7. Bay Street: at the intersection with
Wharf Street (Mitchell
Point), along the outside
radius of the existing road
as delineated by the
established guardrail.
8. Bay Street: on the south side from
Page 6 of 189
Ordinance No. 026-20
Page 4 of 10
Tracy Avenue, westerly for
a distance of 200 feet.
9. Bay Street: on the north side, from
the DeKalb Street
pedestrian pier westerly
for 70 feet and in front of
501 Bay Street.
10. Bay Street: at the southwest corner of
the intersection with
Arnold Avenue E., from
the point of curvature to
the point of tangency of
the curve radius.
11. Bay Street: on the south side from
Dekalb Street, 130 feet to
the east.
12. Becky Avenue: on both sides of street,
from Dallas Street south to
dead end.
13. Bethel Avenue on the west side from the
driveway at 1130 Bethel
Avenue, 245 feet north.
14. Cedar Canyon: on both sides of the street
within 100 feet of the
Tremont Street right-of-
way.
15. Chanting Circle SW: on both sides of street,
from Old Clifton Road 260
feet. Then on the east side
to Chanting Circle. Then
along the inside curb of
the remaining part of
Chanting Circle.
16. Chatterton Avenue SW: on the west side of street.
17. Chowchilla Way: on the south side of street.
18. Dallas Street: on the right-hand side, as
the traffic flows.
19. DeKalb Street: on both sides from Cline
Avenue easterly to dead
end.
Page 7 of 189
Ordinance No. 026-20
Page 5 of 10
20. DeKalb Street: on the south side, from
Sidney Avenue westerly
for a distance of 100 feet.
21. DeKalb Street: on the north side, from
Tracy Avenue easterly to
the end of DeKalb Street.
22. DeKalb Street: on the south side, from
Mitchell Avenue to the
east side of Tracy Avenue.
23. Donna Street: on the south side of street.
24. Egret Street: on the south side of the
street.
25. Fiscal Street: on the south side of the
street.
26. Fantail Place: on the east side of the
street.
27. Farragut Avenue: on both sides, from
DeKalb Street to Morton
Street; except, on the east
side, 160 feet north of
DeKalb Street.
28. Forest Park Street On both sides of the
street.
29. Glenmore Loop: on the inside radius of the
entire loop.
30. Glenwood Road SW: on the north side, from
Sidney Road 350 feet
west.
31. Grebe Way: on the north side, from
Siskin Circle to Swift
Avenue.
32. Guy Wetzel Street: on both sides from Bay
Street to Perry Avenue.
33. Huntington Street: on both sides from Olney
Avenue to Glenmore Loop
and the north side from
Glenmore Loop to west
end terminus.
34. Jabirin Way: on the north side of street.
Page 8 of 189
Ordinance No. 026-20
Page 6 of 10
35. Koda Circle:
36. Landis Ct. SW
along fire lanes where
marked/posted.
on the northeast side.
367. Lazuli Street: on the south side, from
Wigeon Avenue to Siskin
Circle.
378. Lippert Drive: on both sides, from
Pottery Avenue to
Advantage Street.
389. Lloyd Parkway: on both sides from SW Old
Clifton Road to Lumsden
Road.
3940. Lowren Street: on the right-hand side, as
the traffic flows on the
one-way portion of the
street.
401. Lumsden Road: on both sides of the street.
412. Lone Bear Drive: on both sides from Feigley
Road to 100 feet west of
Chatterton Avenue SW.
423. Longview Avenue: on east side of street.
434. Mitchell Avenue: on both sides, from Bay
Street to Kitsap Street.
445. Murrelet Avenue: on both sides, from Old
Clifton Road to Siskin
Circle.
456. Pickford Place SW: on the left-hand side as
the traffic flows on the
street, from SW Colbert
Way to end of cul-de-sac.
467. Plisko Avenue: on both sides, from
Mitchell Avenue to Mile
Hill Drive.
478. Prospect Street: on the inside radius of the
curve between Robert
Geiger Street and
Frederick Avenue.
Page 9 of 189
Ordinance No. 026-20
Page 7 of 10
489. Pottery Avenue: on both sides of the street,
within 100 feet of the
Tremont Street right-of-
way.
4950. Retsil Road: on the west side, from the
north corporate limits to
the south property line of
982 Retsil Road.
501. Robert Geiger Street: other than official city
vehicles, parking is
prohibited at all times
along the south side, from
Bay Street to Prospect
Street.
512. Rockwell Avenue: on both sides, from Bay
Street to Kitsap Street.
523. Ross Street: on the south side of the
400 block.
534. Sage Court: on both sides of street.
545. Sage Street: on both sides from Pottery
Avenue east for a distance
of 70 feet and on the left-
hand side, as the traffic
flows, on the remainder of
the street.
556. Seattle Avenue: on the east side, from Bay
Street southerly for a
distance of 82 feet.
567. Sherman Avenue: on the east side of the
1200-1300 block from the
dead end 980 feet north.
578. Sidney Avenue: on the west side from Bay
Street to Prospect Street.
589. Siskin Circle: on the inside curb of Siskin
Circle throughout the
circle.
5960. Snowridge Avenue: on the left-hand side, as
the traffic flows on the
street.
Page 10 of 189
Ordinance No. 026-20
Page 8 of 10
601. Sprague Street: on the right-hand side, as
the traffic flows on the
one-way portion of the
street.
612. Sroufe Street: on the south side, from
Sidney Avenue to Portland
Avenue.
623. Strathmore Circle SW: on outside of circle
traveling either direction.
634. Sweany Street: on the north side, from
Cline Avenue westerly for
a distance of 340 feet.
645. Sweany Street: on the south side, from
Sidney Avenue westerly
for a distance of 200 feet.
656. Swift Avenue: on west side, from Siskin
Circle to Lazuli Street.
667. SW Colbert Way: on left-hand side of street
as the traffic flows, from
Pickford Place SW to
Chatterton Avenue SW.
678. SW Old Clifton Road on both sides from
Chanting Circle SW to
Campus Parkway.
689. SW Stanwick Way: on the right-hand side of
street as the traffic flows,
from Lone Bear Drive to
Pickford Place SW.
6970. Tremont Place: on both sides of street
from 233 Tremont Place
driveway to end of road
guardrail.
701. Tremont Street: on both sides of the street,
within 100 feet of Pottery
Avenue right-of-way.
712. Warbler Way: on both sides of street
from Old Clifton Road to
Siskin Circle.
723. Warbler Way: from Siskin Circle to curve
Page 11 of 189
Ordinance No. 026-20
Page 9 of 10
(park) on south side and
on east side from curve
(park) to Grebe Way.
734. Wilkins Drive: on both sides, from the
west terminus, eastward
350 feet.
745. Lot 4: all of Lot 4, as defined in
POMC 10.12.580,
Saturdays from 5:00 a.m.
to 5:00 p.m., from April
1st through October 31st.
SECTION 3. Authorization for Posting Signs. The City Engineer is hereby directed to post
the signs as required and as a result of the amendments of Section 10.12.270 AND 10.12.500,
after passage of this Ordinance, before the Effective Date.
SECTION 4. Severability. If any section, subsection, paragraph, sentence, clause, or
phrase of this ordinance is declared unconstitutional or invalid for any reason, such decision
shall not affect the validity of the remaining parts of this ordinance.
SECTION 5. Effective Date. This ordinance shall be in full force and effect five (5) days
after posting and publication as required by law. A summary of this Ordinance may be
published in lieu of the entire ordinance, as authorized by State Law.
PASSED by the City Council of the City of Port Orchard, APPROVED by the Mayor and
attested by the City Clerk in authentication of such passage this 13th day of October 2020
Robert Putaansuu, Mayor
ATTEST:
Brandy Rinearson, CMC, City Clerk
Page 12 of 189
Ordinance No. 026-20
Page 10 of 10
APPROVED AS TO FORM: SPONSORED BY:
Charlotte A. Archer, City Attorney Scott Diener, Councilmember
Page 13 of 189
ORDINANCE NO. 026-20
AN ORDINANCE OF THE CITY OF PORT ORCHARD, WASHINGTON, RELATING TO
PARKING ON PUBLIC STREETS; AMENDING SECTION 10.12.270 AND 10.12.500 OF
THE PORT ORCHARD MUNICIPAL CODE, AND ESTABLISHING AN EFFECTIVE DATE.
WHEREAS, WAC 308.330.270 authorizes the City to adopt regulations to prohibit,
regulate or limit stopping, standing or parking of vehicles in the City; and
WHEREAS, Port Orchard Municipal Code (POMC) Section 10.12.080(1) authorizes the
City Council to from time to time, establish parking prohibitions and restrictions on portions of
certain specified streets; and
WHEREAS, the City Council deems it in the best interest of the City of Port Orchard to
periodically review and update such regulations; and
WHEREAS, the City Council chose to codify the parking regulations in order to aid the
public in its ability to access and review said regulations; and
WHEREAS, specific revisions to POMC Section 10.12.270, Stopping, standing and
parking, and POMC Section 10.12.500 Parking prohibited at all times, are hereby proposed by
staff; and
WHEREAS, the City Council has reviewed the proposed amendments and believes it to
be in the best interests of the City to enact the proposed amendments; now, therefore,
THE CITY COUNCIL OF THE CITY OF PORT ORCHARD, WASHINGTON, DO ORDAIN AS
FOLLOWS:
SECTION 1. Section 10.12.270 of the Port Orchard Municipal Code is hereby amended
to read as follows:
10.12.270 Stopping, standing and parking.
1) Except when necessary to avoid conflict with other traffic, or in compliance with law
or the directions of a police officer or official traffic control device, no person shall:
(a) Stop, park, or leave standing any vehicle, whether attended or unattended, upon the
roadway.
(b) Stop, stand, or park a vehicle:
(i) On the roadway side of any vehicle stopped or parked at the edge of a curb of a
street;
(ii) On a sidewalk, curb, or street planting strip;
(iii) Within an intersection;
(iv) On a crosswalk;
Page 14 of 189
Ordinance No. 026-20
Page 2 of 10
(v) Alongside or opposite any street excavation or obstruction when stopping, standing,
or parking would obstruct traffic;
(vi) Upon any bridge or other elevated structure upon a highway or within a highway
tunnel;
(vii) On any railroad tracks; or
(viii) In the area between roadways of a divided highway including crossovers.
(c) Stand or park a vehicle, whether occupied or not, except momentarily to pick up or
discharge a passenger or passengers:
(i) In front of a public or private driveway or within five feet of the end of the curb radius
leading thereto;
(ii) Within 15 feet of a fire hydrant;
(iii) Within 20 feet of a crosswalk;
(iv) Within 30 feet upon the approach to any flashing signal, stop sign, yield sign, or
traffic control signal located at the side of a roadway;
(v) Within 20 feet of the driveway entrance to any fire station and on the side of the
street opposite the entrance to any fire station within 75 feet of said entrance when properly
posted; or
(vi) Within 15 feet of a clearly visible mailbox which is located directly adjacent to
curbside or right-of-way.
(d) Park a vehicle, whether occupied or not, except temporarily for the purpose of and
while actually engaged in loading or unloading property or passengers:
(i) Within 50 feet of the nearest rail of a railroad crossing.
(2) It shall be unlawful for any person to reserve or attempt to reserve any portion of a
highway for the purpose of stopping, standing, or parking to the exclusion of any other like
person, nor shall any person be granted such right.
(3) Except as otherwise provided in this section, every vehicle stopped or parked upon a
two-way roadway shall be so stopped or parked with the right-hand wheels parallel to and
within 12 inches of the right-hand curb or as close as practicable to the right edge of the right-
hand shoulder.
(4) Except when otherwise provided by this section, every vehicle stopped or parked
upon a one-way roadway shall be so stopped or parked parallel to the curb or edge of the
roadway, in the direction of authorized traffic movement, with its right-hand wheels within 12
inches of the right-hand curb or as close as practicable to the right edge of the right-hand
shoulder, or with its left-hand wheels within 12 inches of the left-hand curb or as close as
practicable to the left edge of the left-hand shoulder.
(5) Subsections (1) through (4) of this section do not apply to the driver of any vehicle
that is disabled in such manner and to such extent that it is impossible to avoid stopping and
temporarily leaving the vehicle in such position. The driver shall nonetheless arrange for the
prompt removal of the vehicle.
(6) Violation of this section is a Class A parking infraction.
Page 15 of 189
Ordinance No. 026-20
Page 3 of 10
SECTION 2. Section 10.12.500 of the Port Orchard Municipal Code is hereby amended
to read as follows:
10.12.500 Parking prohibited at all times.
When signs are erected by the city engineer giving notice thereof, no person shall park a vehicle
at any time upon any of the streets or parts of streets described as follows:
1. Ada Street: on the north side of Ada
Street, in front of 825 Ada
Street.
2. Advantage Avenue: on the west side of the
north 350 feet of roadway
and on the left-hand side,
as the traffic flows, of the
remainder of the street.
3. Andasio Loop SE: on the outside curb along
the entire loop.
4. Arnold Avenue E.: along the west side of
Arnold Avenue E., from
the Lawrence Street
intersection, to the
northeast towards Bay St.,
100 feet.
5. Arnold Avenue E.: along the east side of
Arnold Avenue E., from
the Bay Street
intersection, to the south
66 feet.
6. Bay Street: on both sides, from the
traffic signal on SR 166
(Bay/Maple Street) for a
distance of 200 feet
northeast of Guy Wetzel
Street.
7. Bay Street: at the intersection with
Wharf Street (Mitchell
Point), along the outside
radius of the existing road
as delineated by the
established guardrail.
8. Bay Street: on the south side from
Page 16 of 189
Ordinance No. 026-20
Page 4 of 10
Tracy Avenue, westerly for
a distance of 200 feet.
9. Bay Street: on the north side, from
the DeKalb Street
pedestrian pier westerly
for 70 feet and in front of
501 Bay Street.
10. Bay Street: at the southwest corner of
the intersection with
Arnold Avenue E., from
the point of curvature to
the point of tangency of
the curve radius.
11. Bay Street: on the south side from
Dekalb Street, 130 feet to
the east.
12. Becky Avenue: on both sides of street,
from Dallas Street south to
dead end.
13. Bethel Avenue on the west side from the
driveway at 1130 Bethel
Avenue, 245 feet north.
14. Cedar Canyon: on both sides of the street
within 100 feet of the
Tremont Street right-of-
way.
15. Chanting Circle SW: on both sides of street,
from Old Clifton Road 260
feet. Then on the east side
to Chanting Circle. Then
along the inside curb of
the remaining part of
Chanting Circle.
16. Chatterton Avenue SW: on the west side of street.
17. Chowchilla Way: on the south side of street.
18. Dallas Street: on the right-hand side, as
the traffic flows.
19. DeKalb Street: on both sides from Cline
Avenue easterly to dead
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Ordinance No. 026-20
Page 5 of 10
end.
20. DeKalb Street: on the south side, from
Sidney Avenue westerly
for a distance of 100 feet.
21. DeKalb Street: on the north side, from
Tracy Avenue easterly to
the end of DeKalb Street.
22. DeKalb Street: on the south side, from
Mitchell Avenue to the
east side of Tracy Avenue.
23. Donna Street: on the south side of street.
24. Egret Street: on the south side of the
street.
25. Fiscal Street: on the south side of the
street.
26. Fantail Place: on the east side of the
street.
27. Farragut Avenue: on both sides, from
DeKalb Street to Morton
Street; except, on the east
side, 160 feet north of
DeKalb Street.
28. Forest Park Street On both sides of the
street.
29. Glenmore Loop: on the inside radius of the
entire loop.
30. Glenwood Road SW: on the north side, from
Sidney Road 350 feet
west.
31. Grebe Way: on the north side, from
Siskin Circle to Swift
Avenue.
32. Guy Wetzel Street: on both sides from Bay
Street to Perry Avenue.
33. Huntington Street: on both sides from Olney
Avenue to Glenmore Loop
and the north side from
Glenmore Loop to west
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Ordinance No. 026-20
Page 6 of 10
end terminus.
34. Jabirin Way: on the north side of street.
35. Koda Circle:
36. Landis Ct. SW
along fire lanes where
marked/posted.
on the northeast side.
37. Lazuli Street: on the south side, from
Wigeon Avenue to Siskin
Circle.
38. Lippert Drive: on both sides, from
Pottery Avenue to
Advantage Street.
39. Lloyd Parkway: on both sides from SW Old
Clifton Road to Lumsden
Road.
40. Lowren Street: on the right-hand side, as
the traffic flows on the
one-way portion of the
street.
41. Lumsden Road: on both sides of the street.
42. Lone Bear Drive: on both sides from Feigley
Road to 100 feet west of
Chatterton Avenue SW.
43. Longview Avenue: on east side of street.
44. Mitchell Avenue: on both sides, from Bay
Street to Kitsap Street.
45. Murrelet Avenue: on both sides, from Old
Clifton Road to Siskin
Circle.
46. Pickford Place SW: on the left-hand side as
the traffic flows on the
street, from SW Colbert
Way to end of cul-de-sac.
47. Plisko Avenue: on both sides, from
Mitchell Avenue to Mile
Hill Drive.
48. Prospect Street: on the inside radius of the
Page 19 of 189
Ordinance No. 026-20
Page 7 of 10
curve between Robert
Geiger Street and
Frederick Avenue.
49. Pottery Avenue: on both sides of the street,
within 100 feet of the
Tremont Street right-of-
way.
50. Retsil Road: on the west side, from the
north corporate limits to
the south property line of
982 Retsil Road.
51. Robert Geiger Street: other than official city
vehicles, parking is
prohibited at all times
along the south side, from
Bay Street to Prospect
Street.
52. Rockwell Avenue: on both sides, from Bay
Street to Kitsap Street.
53. Ross Street: on the south side of the
400 block.
54. Sage Court: on both sides of street.
55. Sage Street: on both sides from Pottery
Avenue east for a distance
of 70 feet and on the left-
hand side, as the traffic
flows, on the remainder of
the street.
56. Seattle Avenue: on the east side, from Bay
Street southerly for a
distance of 82 feet.
57. Sherman Avenue: on the east side of the
1200-1300 block from the
dead end 980 feet north.
58. Sidney Avenue: on the west side from Bay
Street to Prospect Street.
59. Siskin Circle: on the inside curb of Siskin
Circle throughout the
circle.
Page 20 of 189
Ordinance No. 026-20
Page 8 of 10
60. Snowridge Avenue: on the left-hand side, as
the traffic flows on the
street.
61. Sprague Street: on the right-hand side, as
the traffic flows on the
one-way portion of the
street.
62. Sroufe Street: on the south side, from
Sidney Avenue to Portland
Avenue.
63. Strathmore Circle SW: on outside of circle
traveling either direction.
64. Sweany Street: on the north side, from
Cline Avenue westerly for
a distance of 340 feet.
65. Sweany Street: on the south side, from
Sidney Avenue westerly
for a distance of 200 feet.
66. Swift Avenue: on west side, from Siskin
Circle to Lazuli Street.
67. SW Colbert Way: on left-hand side of street
as the traffic flows, from
Pickford Place SW to
Chatterton Avenue SW.
68. SW Old Clifton Road on both sides from
Chanting Circle SW to
Campus Parkway.
69. SW Stanwick Way: on the right-hand side of
street as the traffic flows,
from Lone Bear Drive to
Pickford Place SW.
70. Tremont Place: on both sides of street
from 233 Tremont Place
driveway to end of road
guardrail.
71. Tremont Street: on both sides of the street,
within 100 feet of Pottery
Avenue right-of-way.
72. Warbler Way: on both sides of street
Page 21 of 189
Ordinance No. 026-20
Page 9 of 10
from Old Clifton Road to
Siskin Circle.
73. Warbler Way: from Siskin Circle to curve
(park) on south side and
on east side from curve
(park) to Grebe Way.
74. Wilkins Drive: on both sides, from the
west terminus, eastward
350 feet.
75. Lot 4: all of Lot 4, as defined in
POMC 10.12.580,
Saturdays from 5:00 a.m.
to 5:00 p.m., from April
1st through October 31st.
SECTION 3. Authorization for Posting Signs. The City Engineer is hereby directed to post
the signs as required and as a result of the amendments of Section 10.12.270 AND 10.12.500,
after passage of this Ordinance, before the Effective Date.
SECTION 4. Severability. If any section, subsection, paragraph, sentence, clause, or
phrase of this ordinance is declared unconstitutional or invalid for any reason, such decision
shall not affect the validity of the remaining parts of this ordinance.
SECTION 5. Effective Date. This ordinance shall be in full force and effect five (5) days
after posting and publication as required by law. A summary of this Ordinance may be
published in lieu of the entire ordinance, as authorized by State Law.
PASSED by the City Council of the City of Port Orchard, APPROVED by the Mayor and
attested by the City Clerk in authentication of such passage this 13th day of October 2020.
Robert Putaansuu, Mayor
ATTEST:
Brandy Rinearson, MMC, City Clerk
Page 22 of 189
Ordinance No. 026-20
Page 10 of 10
APPROVED AS TO FORM: SPONSORED BY:
Charlotte A. Archer, City Attorney Scott Diener, Councilmember
PUBLISHED:
EFFECTIVE DATE:
Page 23 of 189
City of Port Orchard
216 Prospect Street, Port Orchard, WA 98366
(360) 876-4407 • FAX (360) 895-9029
Agenda Staff Report
Agenda Item No.: Consent Agenda 4D Meeting Date:
October 13, 2020
Subject Ratification of Mayor’s Signature on Prepared by: Mark Dorsey, P.E.
Grant No. GVL24702 with DOH for the Public Works Director
McCormick Woods/Port Orchard Water Atty Routing No.: N/A
Systems Consolidation Study Atty Review Date: N/A
Summary: The City of Port Orchard was awarded a $30,000 Grant by the Washington State
Department of Health, Office of Drinking Water (DOH) to conduct a study on the consolidation of the
McCormick Woods and City of Port Orchard Water Systems. On December 31, 2019, the Mayor
executed DOH Contract No. GVL24702 and DOH subsequently executed said Contract on January 2,
2020.
Relationship to Comprehensive Plan: Chapter 7 – Utilities
Recommendation: Staff recommends ratification of the Mayor’s signature on Washington State
Department of Health, Office of Drinking Water (DOH) Grant No. GVL24702 in the amount of $30,000
for the McCormick Woods and City of Port Orchard Water System Consolidation Study.
Motion for Consideration: Staff recommends ratification of the Mayor’s signature on Washington
State Department of Health, Office of Drinking Water (DOH) Grant No. GVL24702 in the amount of
$30,000 for the McCormick Woods and City of Port Orchard Water System Consolidation Study.
Alternatives: None
Fiscal Impact: Grant award of $30,000.
Attachments: Executed DOH Contract No. GVL24702.
Page 24 of 189
GVL24702Grant AgreementbetweenDepartment of HealthandCity of Port OrchardPage 25 of 189
TABLE OF CONTENTSFace Sheet..................................................................................................................... 1Special Terms and Conditions ........................................................................................21. Contract Management and Communications ...........................................22. Compensation.........................................................................................^3. Expenses...................................................................................-.-.......^4. Billing Procedures and Payment.............................................................^5. SUBCONTRACTOR Data Coilection ...................................................... 36. Historical or Cultura! Artifacts................................................................... 37. Insurance................................................................................................. 38. Order of Precedence................................................................................ 3General Terms and Conditions ....................................................................................... 41. Definitions...............................................................................................^2. Allowable Costs....................................................................................... 43. All Writings Contained Herem.................................................................. 44. Amendments...........................................................................................^5. Americans with Disabilities Act (ADA)...................................................... 46. Assignment.............................................................................................^7. Attorney's Fees........................................................................................ 58. Code Requirements.................................................................................59. Conformance...........................................................................................510. Conflict of Interest.................................................................................... 511. Disallowed Costs .....................................................................................512. Disputes................................................................................................... 513. Duplicate Payment................................................................................... 614. Governing Law and Venue....................................................................... 615. Indemnification......................................................................................... 616. Independent Capacity of the CONTRACTOR .......................................... 617. Industrial Insurance Coverage................................................................. 618. Laws........................................................................................................ 619. Licensing, Accreditation and Registration ................................................620. Limitation of Authority ..............................................................................721. Noncompiiance With Nondiscrimination Laws........................................../22. Prevailing Wage Law............................................................................... 723. Prohibition Against Payment of Bonus or Commission............................. 724. Publicity..................................................................................-...............?25. Recapture................................................................................................?26. Records Maintenance..............................................................................?27. Registration With Department of Revenue............................................... 728. Right of Inspection.............................................................................-....?Page 26 of 189
FACE SHEETWashington State Department of Health on behalf ofFinancial Services DivisionOffice of Drinking WaterDrinking Water System Repairs and ConsolidationContract Number: CB0247021. CONTRACTORCity of Port Orchard2. CONTRACTOR Doing Business As (optional)Address doing Business as3. CONTRACTOR RepresentativeJacki BrownUtility Manager360-876-4991publ[cworks(%citvofportorchard,us4. DOH RepresentativeEloise RudolphGrants and Loan Officer360-236-3124E]oise.Rudolph(a)doh.wa.govPO BOX 47822Olympia, WA 98504-78225. Contract Amount$30,0006. Funding SourceFederal: |_| State:Other: D N/A: D7. Start DateDOE8. End Date6/30/20219. Federal Funds (as applicable)N/A10. Federal AgencyN/A11. CFDA Number:N/A12. Tax ID #91-600148713.SWV#00265665-0014.UBI#182-000-00515. DUNS ft08.193.279016. Contract PurposeThe purpose of this contract is to fund a study for the consolidation ofMcCormick Woods's water system (PWSID 40529) withPort Orchard,DOH and CONTRACTOR acknowledge and accept the terms of this Contract and have executed this Contract on the date below tostart as of the date and year referenced above. The rights and obligations of the parties are governed by the Contract Special Termsand Conditions, General Terms and Conditions, Attachment "A" — Scope of Work, and Attachment "B" — Budget,FOR CONTRACTORv\v^^<j.x <\^\(<a^\i^\^.\-\\\Mr\Date Signed:FOR DOH...--ri-^[T.J.^..6^.Department of Health Contracting Officer Signature ,lff 12-1 "^ ~L.C>DatJ Signed:Frank WebleyContract SpeeialisfIECAPPROVED AS TO FORM ONLYBY ASSISTANT ATTORNEY GENERALAPPROVAL ON FILEContract # GVL24702Page 1 of 12Page 27 of 189
TABLE OF CONTENTS29. Savings.................................................................................................... 830. Severability.............................................................................................. 831. Subcontracting......................................................................................... 832. Survival.................................................................................................... 833. Taxes....................................................................................................... 834. Termination for Cause ............................................................................. 835. Termination Procedures...........................................................................936. Waiver..................................................................................................... 9Attachment A, Scope of WorkAttachment B, BudgetJAN 02Page 28 of 189
SPECIAL TERMS AND CONDITIONSCAPITALSTATE FUNDS1. CONTRACT MANAGEMENT AND COIVHVIUNICATIONSCommunication regarding Contract performance is delegated by each party to its ContractRepresentative. Either party may change its Representative by giving prior express notice to theother party. Either party may identify on an as-needed basis an alternate Representative to serveduring the stated temporary absence of its primary Representative.Notices between the parties regarding Contract performance must be by written connmunicationbetween the Representatives. Written communication includes email but not voice mail. Notices arepresumed received by the other party's Representative upon evidence of delivery between the hoursof 8:00 am to 5:00 pm except for state holidays and weekends.2. COIVIPENSATIONDOH shall pay an amount not to exceed $30,000 for the performance of all things necessary for orincidental to the performance of work as set forth in the Scope of Work and Budget. CONTRACTOR'Scompensation for services rendered shall be based on the following rates or in accordance with thefollowing terms:3. EXPENSESCONTRACTOR may receive reimbursement for travel and other expenses if provided for under theScope of Work or Budget. Any expense reimbursements are inciuded in the Contract not to exceedamount.Such expenses may include airfare (economy or coach class only), other transportation expenses,and lodging and subsistence necessary during periods of required travel. Compensation for travelexpenses will be made at current state travel reimbursement rates.4. BILLING PROCEDURES AND PAYMENTDOH will pay CONTRACTOR upon acceptance of properiy completed invoice voucher (Form A-19)submitted to the DOH Representative. Invoices may not be submitted more frequently than monthly.The invoices must describe and document, to DOH's satisfaction, a description of the workperformed, and the progress of the project under the Scope of Work. Each invoice must include theContract Number GVL24702. If expenses are invoiced, CONTRACTOR must provide a detailedbreakdown of each type. A receipt must accompany any single expense in the amount of $50.00 ormore to qualify for reimbursement.Payments are timely if made by DOH within thirty (30) calendar days after receipt of properlycompleted invoices. Payment will be sent to the address designated by the CONTRACTOR if otherthan to the CONTRACTOR Representative.No payments in advance or in anticipation of performance to be provided under the Scope of Workwili be made by DOH.Duplication of Billed CostsThe CONTRACTOR may not bill DOH for services performed under this Agreement, and DOH shallnot pay the CONTRACTOR, if the CONTRACTOR is entitled to payment or has been or will be paidby any other source, including grants, for that service.Disallowed CostsThe CONTRACTOR is responsible for any audit exceptions or disallowed costs incurred by its ownorganization or that of its SUBCONTRACTORS.DOH will withhold ten percent (10%) of grant funds until DOH confirms that RECIPIENT hassuccessfully completed all steps for PROJECT COMPLETION. The 10% holciback will be available toRECIPIENT as part of the last grant disbursement.Contract # GVL24702-0 Page 2 of 12Page 29 of 189
SPECIAL TERMS AND CONDITIONSCAPITALSTATE FUNDS5. SUBCONTRACTOR DATA COLLECTIONCONTRACTOR will submit reports, in a form and format to be provided by DON and at intervals asagreed by the parties, regarding work under this Grant performed by SUBCONTRACTORS and theportion of Grant funds expended for work performed by SUBCONTRACTORS, including but notnecessarily limited to minority-owned, woman-owned, and veteran-owned businessSUBCONTRACTORS. "SUBCONTRACTORS" shall mean SUBCONTRACTORS of any tier.6. HISTORICAL OR CULTURAL ARTIFACTSCertain capital construction projects may be subject to the requirements of Washington StateExecutive Order 05-05 "Archaeological and Cultural Resources." CONTRACTOR will cooperate withDOH as may be required, to fulfil! the requirements of EO-05-05. In the event that historical or culturalartifacts are discovered at the Project site during construction or rehabilitation, the CONTRACTOR orSUBCONTRACTOR shall immediately stop work and notify the local historical preservation officerand the state historic preservation officer at the Department of Archaeology and Historic Preservationat (360) 586-3065. If human remains are discovered, the CONTRACTOR shall immediately stopwork and report the presence and location of the remains to the coroner and local enforcement, thencontact DAMP and any concerned tribe's cultural staff or committee.7. INSURANCEThe CONTRACTOR shall maintain coverage for the duration of the project and shall provide proof ofcoverage and scope of coverage upon request from DOH. Coverage must include comprehensivetiabiiity, personal injury, errors and omissions, and contractual liability.8. ORDER OF PRECEDENCEIn the event of an inconsistency in this Contract, the inconsistency shall be resolved by givingprecedence in the following order: The order of precedence for terms and conditions under categoriesB through E is subject to the proviso that when a Contract term or condition appears in more than oneContract section, the more specific Contract term or condition shall control if the different provisionscannot be harmonized.A. Applicable federal and state of Washington statutes and regulationsB. Special Terms and ConditionsC. General Terms and ConditionsD. Attachment A - Scope of WorkE. Attachment B - BudgetContract # GVL24702-0 Page 3 of 12Page 30 of 189
GENERAL TERMS AND CONDITIONSCAPITALSTATE FUNDS1. DEFINITIONSAs used throughout this Contract, the following terms shall have the meaning set forth below:A. "DOH Representative" shall mean the identified designee authorized to act on behaff of DOH in themanagement of the Contract.B. "DOH" shall mean the Washington State Department of Health.C. "Contract" or "Agreement" means the entire written agreement between DOH and theCONTRACTOR, including Attachments, documents, or materials incorporated by reference. E-mail or Facsimile transmission of a signed copy of this contract shall be the same as delivery ofan original.D. "CONTRACTOR" shall mean the entity identified on the face sheet performing service(s) underthis Contract, and shall include all employees and agents of the CONTRACTOR.E. "CONTRACTOR Representative" shall mean the identified designee authorized to act on behalfof CONTRACTOR in the management of the Contract.F. "Persona! Information" shall mean information identifiable to any person, including, but not limitedto, information that relates to a person's name, DOH, finances, education, business, use orreceipt of governmental services or other activities, addresses, telephone numbers, socialsecurity numbers, driver license numbers, other identifying numbers, and any financial identifiers.G. "State" shall mean the state of Washington.H. "SUBCONTRACTOR" shall mean one not in the employment of the CONTRACTOR, who isperforming all or part of those services under this Contract under a separate contract with theCONTRACTOR. The terms "SUBCONTRACTOR" and "SUBCONTRACTORS" meanSUBCONTRACTOR(S) in any tier.2. ALLOWABLE COSTSCosts allowable under this Contract are actual expenditures according to the Contract Budget up to themaximum amount stated on the Contract Face Sheet. Staff time reimbursement direct labor cost limitedto 3.0% of contract amount.3. ALL WRITINGS CONTAINED HEREINThis Contract contains all the terms and conditions agreed upon by the parties. No otherunderstandings, oral or otherwise, regarding the subject matter of this Contract shall be deemed toexist or to bind any of the parties hereto.4. AMENDMENTSThis Contract may be amended by mutual agreement of the parties. Such amendments shall not bebinding unless they are in writing and signed by personnel authorized to bind each of the parties.5. AMERICANS WITH DISABILITIES ACT fADAl OF 1990. PUBLIC LAW 101-336. also referred toas the "ADA" 28 CFR Part 35The CONTRACTOR must comply with the ADA, which provides comprehensive civil rights protectionto individuafs with disabilities in the areas of employment, public accommodations, state and localgovernment services, and telecommunications.6. ASSIGNMENTNeither this Contract, nor any claim affecting the Contract terms and conditions may be transferred orassigned by the CONTRACTOR without prior written consent of DOH.7. ATTORNEYS'FEESUnless expressly permitted by statute or under another provision of the Contract, In the event offitigation or other action brought to enforce Contract terms, each party agrees to bear its ownattorney's fees and costs.Contract # GVL24702 Page 4 of 12Page 31 of 189
GENERAL TERMS AND CONDITIONSCAPITALSTATE FUNDS8. CODE REQUIREMENTSAll construction and rehabilitation projects must satisfy the requirements of applicable local, state, andfederal building, mechanical, plumbing, fire, energy and barrier-free codes. Compliance with theAmericans with Disabilities Act of 1990 28 C.F.R. Part 35 will be required, as specified by the localbuilding Department.9. CONFORMANCEif any provision of this contract violates any statute or rule of law of the state of Washington, it isconsidered modified to conform to that statute or rule of law.10. CONFLICT OF INTERESTNotwithstanding any determination by the Executive Ethics Board or other tribunal, DOH may, in itssole discretion, by written notice to the CONTRACTOR, terminate this Contract if it is found after duenotice and examination by DOH that there is a vioiation of the Ethics in Public Service Act, Chapters42.52 ROW, 42.23 ROW; or any similar statute involving the CONTRACTOR in the procurement of,or performance under this contract.11. DISALLOWED COSTSThe CONTRACTOR is responsible for any audit exceptions or disallowed costs incurred by its ownorganization or that of its SUBCONTRACTORS.12. DISPUTESExcept as otherwise provided in this Contract, when a dispute arises between the parties and itcannot be resolved by direct negotiation, either party may request a dispute hearing with the DONDirector of the Office of Drinking Water (Director), who may designate a neutral person to decide thedispute. The parties will be equalty responsible for any reasonable costs incurred by the neutral.The request for a dispute hearing must:• be in writing;• state the disputed issues;• state the relative positions of the parties;• state the requesting party's name, address, and Contract number; and• be mailed to the other party's (respondent's) Representative within three (3) working daysafter the parties agree that they cannot resolve the dispute.The respondent shall send a written answer to the requester's statement to both the Director or theDirector's designee and the requester within five (5) working days.The Director or designee shall review the written statements and reply in writing to both parties withinten (10) working days. The Director or designee may extend this period if necessary by notifying theparties.The decision shall not be admissibie in any succeeding judicial or quasi-judicial proceeding.The parties agree that this dispute process shall precede any action in a judicial or quasi-judicialtribunal.Nothing in this Contract is intended to limit the parties' choice of a mutually acceptable alternatedispute resolution (ADR) method as an alternative to or in addition to the dispute hearing procedureoutlined above.13. DUPLICATE PAYMENTThe CONTRACTOR certifies that work to be performed under this Contract does not duplicate anywork to be charged against any other contract, subcontract, or other source.Contract # GVL24702 Page 5 of 12Page 32 of 189
GENERAL TERMS AND CONDITIONSCAPITALSTATE FUNDS14. GOVERNING LAW AND VENUEThis Contract shall be construed and interpreted in accordance with the laws of the state ofWashington, and the venue of any action brought hereunder shaif be in the Superior Court forThurston County.15. INDEMNIFICATIONCONTRACTOR agrees to defend, indemnify, and hold harmless DOH and the state of Washingtonfor claims arising out of or incident to CONTRACTOR'S or CONTRACTOR'S SUBCONTRACTOR'Sacts or emissions in the performance of the Contract. CONTRACTOR'S obligation to defend,indemnify, and hold harmless DOH and the state of Washington shall not be eliminated or reduced byany actual or alleged concurrent negligence of the state of Washington and DOH, including theiragents, agencies, employees and officials. CONTRACTOR'S obligation to defend, indemnify, andhold harmless DOH and the state of Washington includes any claim by CONTRACTOR'S agents,employees, officers, SUBCONTRACTORS, or SUBCONTRACTORS' employees.The CONTRACTOR waives its immunity under Title 51 RCW to the extent it is required to defend,indemnify, and hold harmless the state and its agencies, officers, agents or employees.16. INDEPENDENT CAPACITY OF THE CONTRACTORThe parties intend that an independent CONTRACTOR relationship will be created by this Contract.The CONTRACTOR and its employees, agents, or SUBCONTRACTORS performing under thisContract are not employees or agents of the state of Washington or DOH. The CONTRACTOR maynot hold itself out as or claim to be an officer or employee of DOH or of the state of Washington byreason hereof, nor may the CONTRACTOR make any claim of right, privilege or benefit which wouldaccrue to such officer or employee under law. Conduct and control of the work will be solely with theCONTRACTOR.17. INDUSTRIAL INSURANCE COVERAGEThe CONTRACTOR must comply with all applicable provisions of Title 51 RCW, Industrial insurance.If the CONTRACTOR fails to provide industrial insurance coverage or fails to pay premiums orpenalties on behalf of its employees as may be required by law, DON may collect from theCONTRACTOR the full amount payable to the Industrial Insurance Accident Fund. DON may deductthe amount owed by the CONTRACTOR to the accident fund from the amount payable to theCONTRACTOR by DOH under this Contract, and transmit the deducted amount to the Department ofLabor and Industries, (L&l) Division of Insurance Services. This provision does not waive any of L&l'srights to coliect from the CONTRACTOR.18. LAWSThe CONTRACTOR shall comply with al! applicable laws, ordinances, codes, regulations and policiesof locai, state, and federal governments, as now or hereafter amended. Ail construction projects mustbe bid and awarded per RCW 39.04.19. LICENSING, ACCREDITATION AND REGISTRATIONThe CONTRACTOR shall comply with all applicable local, state, and federal licensing, accreditationand registration requirements or standards necessary for the performance of this Contract.20. LIMITATION OF AUTHORITYOnly a party's Representative or the Representative's designee (designation to be made in writingprior to action) shail have the express, implied, or apparent authority to communicate with the otherparty regarding performance of the Contract. Changes to the Contract must be done by writtenamendment.21. NONCOMPLIANCE WITH NONDISCRIMINATION LAWSDuring the performance of this Contract, the CONTRACTOR shall comply with all federal, state, andlocal nondiscrimination laws, reguiations and policies. In the event of the CONTRACTOR'S non-compliance or refusal to comply with any nondiscrimination law, regulation or policy, this contract mayContract # GVL24702 Page 6 of 12Page 33 of 189
GENERAL TERMS AND CONDITIONSCAPITALSTATE FUNDSbe rescinded, canceled or terminated in whole or in part, and the CONTRACTOR may be declaredineligible for further contracts with DOH. The CONTFiACTOR shall, however, be given a reasonabletime in which to cure this noncompliance. Any dispute may be resolved in accordance with the"Disputes" procedure set forth herein.22. PREVAILING WAGE LAWThe CONTRACTOR certifies that all CONTRACTORS and SUBCONTRACTORS performing work onthe Project shail comply with state Prevailing Wages on Public Works, Chapter 39.12 RCW, asapplicable to the Project funded by this contract, including but not limited to the filing of the"Statement of Intent to Pay Prevailing Wages" and "Affidavit of Wages Paid" as required byRCW 39.12.040. The CONTRACTOR shall maintain records sufficient to evidence compliance withChapter 39.12 RCW, and shall make such records available for DOH's review upon request.23. PROHIBITION AGAINST PAYMENT OF BONUS OR COIVIMISSIONThe funds provided under this Contract shall not be used in payment of any bonus or commission forthe purpose of obtaining approval of the application for such funds or any other approval orconcurrence under this Contract provided, however, that reasonable fees or bona fide technicalconsultant, managerial, or other such services, other than actual solicitation, are not prohibited ifotherwise eligible as project costs.24. PUBLICITYThe CONTRACTOR agrees not to publish or use any advertising or publicity materials In which thestate of Washington or DOH's name is mentioned, or language used from which the connection withthe state of Washington's or DOH's name may reasonably be inferred or implied, without the priorwritten consent of DON.25. RECAPTUREIn the event that the CONTRACTOR fails to perform this contract in accordance with state laws,federal !aws, and/or the provisions of this contract, DOH reserves the right to recapture funds in anamount to compensate DON for the noncompliance in addition to any other remedies available at lawor in equity.Repayment by the CONTRACTOR of funds under this recapture provision shall occur within the timeperiod specified by DOH. In the alternative, DOH may recapture such funds from payments dueunder this Contract.26. RECORDS MAINTENANCEThe CONTRACTOR must maintain books, records, documents, data and other evidence relating tothis contract and performance of the services described herein, including but not limited to accountingprocedures and practices that sufficiently and properly reflect all direct and indirect costs of anynature expended In the performance of this Contract.CONTRACTOR will retain such records for a period of six (6) years following the date of finalpayment.If any litigation, ciaim or audit is started before the expiration of the six (6) year period, the recordsshall be retained unti! all litigation, claims, or audit findings involving the records have been resolved.27. REGISTRATION WITH DEPARTMENT OF REVENUEIf required by law, the CONTRACTOR will complete registration with the Washington StateDepartment of Revenue.28. RIGHT OF INSPECTIONAt no additional cost, all records works relating to the CONTRACTOR'S performance under thisContract shall be subject at all reasonable times to inspection, review, and audit by DOH, the Officeof the State Auditor, and federal and state officials so authorized by law, in order to monitor andevaluate performance, compliance, and quality assurance under this Contract. The CONTRACTORshall provide access to its facilities for this purpose.Contract # GVL24702 Page 7 of 12Page 34 of 189
GENERAL TERMS AND CONDITIONSCAPITALSTATE FUNDS29. SAVINGSIn the event funding from state, federal, or other sources is withdrawn, reduced, or limited in any wayafter the effective date of this Contract and prior to normal completion, DOH may suspend orterminate the Contract under the "Termination for Convenience" clause, without the ten (10) businessday notice requirement, in lieu of termination, the Contract may be amended to reflect the newfunding limitations and conditions.30. SEVERABILITYThe provisions of this contract are intended to be severabie. if any term or provision is illegal orinvalid for any reason whatsoever, such illegality or invalidity shall not affect the validity of theremainder of the contract.31. SUBCONTRACTINGThe CONTRACTOR shali maintain written procedures related to subcontracting, as well as copies ofall subcontracts and records related to subcontracts. For cause. DOH in writing may: (a) require theCONTRACTOR to amend its subcontracting procedures as they relate to this Contract; (b) prohibitthe CONTRACTOR from subcontracting with a particular person or entity; or (c) require theCONTRACTOR to rescind or amend a subcontract.Every subcontract shaf! bind the SUBCONTRACTOR to follow al! applicable terms of this Contract.The CONTRACTOR is responsible to DOH if the SUBCONTRACTOR fails to comply with anyapplicable term or condition of this Contract. The CONTRACTOR shall appropriately monitor theactivities of the SUBCONTRACTOR to assure conformity with the Scope of Work and Budget. In noevent shall the existence of a subcontract operate to release or reduce the liability of theCONTRACTOR to DOH for any breach in the performance of the CONTRACTOR'S duties.Every subcontract entered into by CONTRACTOR must include a term that the state of Washingtonand DOH are not liable for claims or damages arising from CONTRACTOR'S orSUBCONTRACTOR'S performance or omissions.32. SURVIVALThe terms, conditions, and warranties contained in this Contract that by their sense and context areintended to survive the completion of the performance, cancellation or termination of this Contractshall so survive.33. TAXESAil payments accrued on account of payroll taxes, unemployment contributions, the CONTRACTOR'Sincome or gross receipts, any other taxes, insurance or expenses for the CONTRACTOR or its staffshal! be the sole responsibility of the CONTRACTOR.34. TERMINATION FOR CAUSEIn the event DOH determines the CONTRACTOR has failed to comply with any material term orcondition of this Contract in a timely manner, DOH may suspend or terminate this Contract. Beforesuspending or terminating the Contract, DOH shall notify the CONTRACTOR in writing of the need totake corrective action. If corrective action is not taken within the time period stated in the DOH notice,which shall be no less than twenty (20) calendar days in the absence of good cause for a lesserperiod, the Contract may be terminated or suspended.DOH reserves the right to suspend all or part of the contract, withhold further payments, or prohibitthe CONTRACTOR from incurring additional obligations of funds during investigation of the allegedcompliance breach and pending corrective action by the CONTRACTOR or a decision by DOH toterminate the contract.35. TERMINATION PROCEDURESThe rights and remedies of DON provided in this section shall not be exclusive and are in addition toany other rights and remedies provided by law or under this contract.Contract # GVL24702 Page 8 of 12Page 35 of 189
GENERAL TERMS AND CONDITIONSCAPITALSTATE FUNDSAfter receipt of a notice of termination, and except as otherwise directed by the DOH Representative,the CONTRACTOR shall:1. Stop work under the contract on the date, and to the extent specified, in the notice;2. Place no further orders or subcontracts for materials, services, or facilities except as may benecessary for completion of such portion of the work under the contract that is not terminated;3. Assign to DOH, in the manner, at the times, and to the extent directed by the DOH Representative,all of the rights, title, and interest of the CONTRACTOR under the orders and subcontracts soterminated, in which case DOH has the right, at its discretion, to settle or pay any or al! claimsarising out of the termination of such orders and subcontracts;4. Settle all outstanding liabilities and all claims arising out of such termination of orders andsubcontracts, with the approval or ratification of the DOH Representative to the extent the DONRepresentative may require, which approval or ratification shall be final for all the purposes of thisciause;5. Transfer title to DOH and deliver in the manner, at the times, and to the extent directed by the DOHRepresentative any property which, if the contract had been completed, would have been requiredto be furnished to DOH;6. Complete performance of such part of the work as shall not have been terminated by the DOHRepresentative; and7. TaRe such action as may be necessary, or as the DOH Representative may direct, for the protectionand preservation of the property related to this contract, which is in the possession of theCONTRACTOR and in which DOH has or may acquire an interest.36. WAIVERWaiver of any default or breach shall not be deemed to be a waiver of any subsequent default orbreach. Any waiver shall not be construed to be a modification of the terms of this Contract unlessstated to be such in writing and signed by Authorized Representative of DOH.Contract # GVL24702 Page 9 of 12Page 36 of 189
Attachment ASCOPE OF WORK2019 Consolidation Feasibility GrantProject Title: Port Orchard-McCormick Woods Consolidation Feasibility Study,2019-3712PURPOSE:The purpose of this grant is to fund a study for consolidation of McCormickWoods'swater system (PWS1D 40529) with Port Orchard.Backaroynd/GeneraUnformation:The City of Port Orchard purchased the McCormick Woods Water System in 1998 andhas been operating it as a satellite water system. Providing increased resiiiency as wellas redundancy to the McCormick Woods Water System is of utmost importance to theCity of Port Orchard.The central objectives of the project are to review the current situation and determinethe various opportunities to intertie the two systems. Once this has been accomplished,analyses of those opportunities and estimated costs associated with each shall beprovided to the City of Port Orchard. This intertie will give both water systems anincreased ability to withstand and recover from natural and man-made disturbances totheir functioning. This grant will fund a preliminary engineering report for Port Orchardto consider intertie options.Funding for this project will not be used for any construction or grounddisturbing activities.Contract Administratipn:The funding in this grant is to fund a study for consolidation of McCormick Woods'swater system (PWSID 40529) with Port Orchard.Contract # GVL24702 Page 10 of 12Page 37 of 189
Attachment AThe project's scope of work is comprised of the following activities:TASK/ACTIVITY:Task 1: PreliminaryEngineering Report. Tasksinclude assessing existinginfrastructure, intertieoptions, cost estimates, andfunding opportunities.PAYMENT:DELIVERABLES:Preliminary engineering report thatincludes assessment of existinginfrastructure, identification ofintertieoptions, cost estimate of intertie options,and funding opportunities for proposedimprovements. Report to be reviewedand approved by Southwest RegionaiOffice of Drinking Water staff.Submit quarterly reports to EioiseRudolph. The quarterly progress reportsshould document projectaccomplishments, existing and potentialproblem areas, suggestions forimprovements, and any desiredoutcomes achieved. Reports should bea few paragraphs long with sufficientdetail for DOH to understand the relativeprogress of the project since the lastreporting period. The last quarterlyreport serves as the final report andshould include summary informationabout the project.Quarterly reports are due the lastworking day of each quarter.ESTIMATED DUEDATE:March 31, 2021DOH will provide reimbursement to Port Orchard based on approval ofquarterly reports and required deliverables. Port Orchard will providean hourly accounting of time spent for each task in support of invoice.The contractor is responsible for tracking ail project expenditures asrelated to this contract, and for maintaining these records.DOH will withhold 10 percent of the total funding amount ($3,000) untilthe project is successfully completed and all deliverables are receivedand approved by DOH.Total Consideration for this contract not to exceed: $30,000.00Contract # GVL24702Page 11 of 12Page 38 of 189
Attachment BBudget Project Cost by Cost Category:COST CATEGORYEngineering Report (Preliminary Engineering)Environmental ReviewHistorical Review/Cultural ReviewLand/ROW AcquisitionPermitsPublic Involvement/lnformationFeasibility StudyDOH Review/Approva! Fees:Other: (Sales or Use Taxes)Construction Engineering/lnspectionTOTAL ESTIMATED PROJECT COSTSCURRENT ESTIMATES$20,000$10,000$30,000The project will be considered complete when all the activities identified in the above scope ofwork are complete.Project Performance Measures:• Preliminary engineering report with Southwest Regional Office of Drinking WaterapprovalProject End Date: All deliverabtes needs to be submitted by May 1. 2021 for review andapproval. Work performed after June 30, 2021 is not eligible for reimbursement.Contract # GVL24702Page 12 of 12Page 39 of 189
JANPage 40 of 189
City of Port Orchard
216 Prospect Street, Port Orchard, WA 98366
(360) 876-4407 • FAX (360) 895-9029
Agenda Staff Report
Agenda Item No.: Consent Agenda 4E Meeting Date: October 13, 2020
Subject: Approval of a Contract with Lakewood Police Prepared by: M. Brown
Department for Facility Use of the City’s Chief of Police
Firearms Range Atty Routing No.: N/A
Atty Review Date: N/A
Summary: Attached is the firearms range ILA with the Lakewood Police Department. This agreement is
identical to the current ILA with the Kitsap County Sheriff’s Office. The daily usage fee is $65; LPD may also
supply staff to instruct police officers in a variety of topics in lieu of the daily usage fee.
The range is a tertiary facility for the Lakewood Police Department and will be used minimally when other
ranges are occupied.
This ILA permits use of the firearms range by a regional partner and increases the ability of the Port Orchard
Police Department to train in its mandated core competencies.
Recommendation: Staff recommends the Council authorize the Mayor to sign the Facility Usage Agreement
with the Lakewood Police Department.
Relationship to Comprehensive Plan: N/A
Motion for consideration: I move to authorize the Mayor to execute an Interlocal Agreement with the
Lakewood Police Department regarding the Facility Use of the Firearms Range.
Fiscal Impact: None.
Alternatives: Do not approve the ILA and provide alternative guidance.
Attachments: Facility Use Agreement Range Firearms Testing ILA with the Lakewood Police
Department.
Page 41 of 189
LAKEWOOD CONTRACT NO. 2020-231
Facilities Use Agreement – Range Page 1 of 4
Contract No. 077-20
FACILITY USE AGREEMENT
(Range – Firearms Training)
THIS FACILITY USE AGREEMENT (“Agreement”) is made and entered into by the CITY OF
PORT ORCHARD and the LAKEWOOD POLICE DEPARTMENT (“Renter”) for use by the
Renter of the Port Orchard Firearms Range located at 1278 Lloyd Parkway, Port Orchard,
Washington, on the following terms and conditions:
1. TERM. This Agreement shall become effective on November 30, 2020, and end on
December 31, 2020. This Agreement shall automatically renew on a calendar year basis unless
written notice of termination is given by either party by the proceeding November 30th of any
such year. This Agreement may be executed in counter-parts.
2. USE OF THE RANGE. During the Term of this Agreement, Renter shall be entitled to
use the Firing Range at such times and on such dates as are mutually agreed by the parties. Days
of use shall be scheduled at least thirty (30) days in advance and will be accommodated on a first
scheduled basis. Requests made with less than thirty (30) days notice shall be accommodated
when possible. Use by the City of Port Orchard shall have priority over any requested use by the
Renter. Range hours will be set by the City of Port Orchard or its authorized agent and must be
adhered to by renting agencies. Range hours shall be identified by the City of Port Orchard at
the time the Renter’s schedule is approved. Use of the firing range shall include general lighting,
restrooms and custodial services for the firing range. The City of Port Orchard shall make the
key to the firing range available to the Renter prior to the start of the use.
3. RENTAL RATE. The rate for use of the firing range shall be $65 per day payable to
the City of Port Orchard. A day shall mean ten (10) hours. In lieu of monetary payment, the
Renter may provide supplies, services, and/or manpower of equivalent value if mutually
agreeable by the parties. Renter shall submit to the City of Port Orchard Treasurer invoices,
receipts, or other documentation for verification that equivalent value has been provided. The
City of Port Orchard reserves the right to increase the rental rate at any time upon 45 days prior
written notice to the Renter.
4. EXPENSES. Renter shall supply all weapons, ammunition, targets, and other supplies
used in the target exercise.
5. RANGE SUPERVISION. Renter shall provide and require the presence of a
Department-approved firearms instructor at all times during which the Renter’s personnel are
using the premises. To assure safe operations, the range officer shall have full authority and
responsibility to direct the activities of those using the range and shall halt any activity found to
be unduly hazardous. Posted range rules shall be adhered to at all times. A copy of the current
range rules is attached. The City of Port Orchard reserves the right to modify the range rules at
any time with 30 days prior notice the Renter.
Page 42 of 189
LAKEWOOD CONTRACT NO. 2020-231
Facilities Use Agreement – Range Page 2 of 4
6. MAINTENANCE AND REPAIR. The City of Port Orchard shall, unless herein
specified to the contrary, maintain the premises in good repair and condition during the
continuance of this Agreement, except in case of damage arising from the sole negligence of the
Renter’s agents or employees. For the purposes of maintaining the premises, the City of Port
Orchard reserves the right, at reasonable times, to enter and inspect the premises and to make
necessary repairs to the building. The City of Port Orchard agrees to maintain the firing range in
compliance with federal, state, and local laws, and applicable Occupational Health and Safety
Administration (OSHA) standard. Renter shall clean up all garbage and debris after use,
excluding shell casings and lead.
7. INSURANCE. For the duration of the Agreement, Renter shall maintain a self-
insurance fund or equivalent insurance against claims for injuries to persons or damage to
property which may arise from or in connection with the use of the Premises. The fund or
insurance shall provide general liability coverage of no less than $1,000,000 each occurrence,
$2,000,000 general aggregate. Renter’s insurance coverage shall be primary insurance with
respect to the City of Port Orchard. Any insurance, self-insurance, or insurance pool coverage
maintained by the City of Port Orchard shall be excess of the Renter’s insurance and shall not
contribute to it. Renter shall provide a certificate of insurance evidencing the required insurance
before using the Premises.
8. ATTORNEY’S FEES. In any action brought to enforce any provision of this
Agreement, the prevailing party shall be entitled to recover from the other party all reasonable
costs and reasonable attorney’s fees incurred.
9. TERMINATION. This Agreement may be terminated by either party, without cause,
by giving written notice of not less than thirty (30) days prior to the effective date of termination.
10. NO JOINT VENTURE. Nothing contained in this Agreement shall be construed as
creating any type or manner of partnership, joint venture, or other joint enterprise between the
Parties.
11. NO THIRD-PARTY BENEFICIARY. It is understood and agreed that this
Agreement is solely for the benefit of the parties hereto and gives no right to any other party.
12. INDEMNIFICATION/HOLD HARMLESS. Renter shall defend, indemnify, and
hold harmless the City of Port Orchard, its officers, officials, employees, and volunteers from
and against any and all claims, suits, actions, or liabilities for injury or death of any person, or for
loss or damage to property, which arises out of the Renter’s use of the firing range, except only
for injury, death, loss or damage to property caused by the sole negligence of the City of Port
Orchard, or its officers, officials, employees, or volunteers.
Page 43 of 189
LAKEWOOD CONTRACT NO. 2020-231
Facilities Use Agreement – Range Page 3 of 4
IN WITNESS WHEREOF the parties hereto have executed this Agreement the date and year
indicated.
Dated this ____ day of _________, 2020 Dated this 7th day of October, 2020
CITY OF PORT ORCHARD CITY OF LAKEWOOD
BY: _____________________________ BY: _____ ________________________
Rob Putaansuu, Mayor John J. Caulfield, City Manager
ATTEST: ATTEST:
_________________________________ __________________________________
Brandy Rinearson, City Clerk Briana Schumacher, City Clerk
DEPARTMENTAL APPROVAL: DEPARTMENTAL APPROVAL:
_________________________________ ___________________________________
Matthew Brown, Chief of Police Mike Zaro, Chief of Police
APPROVED AS TO FORM: APPROVED AS TO FORM:
_________________________________ ___________________________________
Charlotte Archer, City Attorney Heidi Ann Wachter, City Attorney
Page 44 of 189
LAKEWOOD CONTRACT NO. 2020-231
Facilities Use Agreement – Range Page 4 of 4
APPENDIX A
FIRING RANGE RULES
Page 45 of 189
City of Port Orchard
Council Meeting Minutes
Work Study Session Meeting of September 15, 2020
CALL TO ORDER AND ROLL CALL
Mayor Putaansuu called the meeting to order at 6:30 p.m.
Roll call was taken by the Deputy City Clerk as follows:
Councilmember Ashby Present via Remote Access
Councilmember Chang Present via Remote Access
Councilmember Clauson Present via Remote Access
Councilmember Cucciardi Present via Remote Access
Councilmember Diener Present via Remote Access
Councilmember Lucarelli Present via Remote Access
Mayor Pro-Tem Rosapepe Present via Remote Access
Mayor Putaansuu Present via Remote Access
Staff present via Remote Access: Community Development Director Bond and Deputy City Clerk
Floyd.
Mayor Putaansuu said Pursuant to the Governor’s “Stay Home - Stay Safe” Order, the City will
conduct the meeting through Zoom.
Pledge of Allegiance
Mayor Putaansuu led the audience and Council in the Pledge of Allegiance.
1. Shoreline Master Plan Program Periodic Update-Climate Change/Sea Level Rise Analysis and
Recommendations
Development Director Bond said we are required to complete a Shoreline Master Program Update
by July 1, 2021. One of the requirements for this cycle is we need to look at climate change and sea
level rise as part of the shoreline regulations for the City. We piggybacked on a study from Kitsap
County on climate resiliency that was started a year and a half ago.
Andrea MacLennan, Herrera Environmental Consultants, gave a presentation on Sea Level Rise and
the City of Port Orchard which included identifying the areas most affected in the downtown area,
evaluating current flood hazards, identifying vulnerable infrastructure, reviewing current code,
providing recommendations for code revisions and additional regulations, and providing
recommendations for next steps and future management of these hazards.
Page 46 of 189
Minutes of September 15, 2020
Page 2 of 3
Discussions were held regarding the presentation and clarification on the projected numbers.
Council Direction: No direction was given.
2. Multi-Family Property Tax Exemption Requirements-Chapter 3.48
Community Development Director Bond noted we should be close to taking action to amend Chapter
3.48 of the Port Orchard Municipal Code. We have been working with the Land Use Committee trying
to find a better approach. When we give a 12-year tax exemption, we want to make sure we are
getting affordable housing that is significantly below market rate, but we also wanted to look at the
8-year exemption. We had a request a couple years ago from a developer that asked for their
property to be included on the 8-year map, but we did not have a process or criteria for determining
who should, and who should not, get an exemption. Part of this amendment is to look at the 8-year
exemption and when it should be granted and what conditions should be attached.
The approach we came up with is to break tax exemptions into 3 different types: Type 1 provides 12-
year exemptions for affordable housing in centers and for other selected properties; Type 2 is an 8-
year exemption to encourage redevelopment with very few strings attached, and recognizes the
relatively higher cost of redevelopment as compared to greenfield development; and Type 3 is an 8-
year exemption for what would generally be characterized as greenfield development, where the
City only provides the incentive if certain performance standards are met.
Discussion was held regarding the different types of tax exemptions, incentives for McCormick,
availability for properties currently within comprehensive plan designated centers, and eligibility for
multi-tax exemption.
Council Direction: Remove McCormick from the Type 3 exemption and bring forward for adoption
at next week’s council meeting.
3. Request for the City to Accept Landis Court SW as a Public Road
Community Development Director Bond explained the plat at McCormick Meadows includes 198
homeowners. For them to amend their plat, it would require all of them to agree, which they
currently do not. When the subdivision came forward for final plat, they realized there was a
condition of approval that said the radius on Landis Court had to have a certain curvature in the
roadway. This curve was a little sharper that what was required so they were told we would not
accept the road as public. They removed the public dedication from their final plat drawing but did
not convey the road to the homeowner’s association. Neither the HOA nor the developer believes
they have ownership interest. The HOA is having a problem because the whole development does
not want to pay for the road and they do not have the ability to collect money for ongoing
maintenance of the road.
Page 47 of 189
Minutes of September 15, 2020
Page 3 of 3
The original developer does not have an issue signing a quick claim deed releasing any interest as
he has no interest in the road. The HOA is also willing to quick claim deed over to the City, but we
would have to agree to accept it.
Discussion was held regarding condition of the road and overlay, parking signs, support from the
Fire Department and Public Works/Engineering department and snow maintenance.
Council Direction: Reach out to the HOA and let them know we are willing to accept it. The City will
draw up the quick claim deeds, figure out how much signage will cost and they will nee d to overlay
the roadway. The City will then bring forward an agreement in a month or two.
4. Discussion: CARES Funding
Mayor Putaansuu spoke to the CARES funding and noted we will be back out for another round of
small business grants. He spoke to the Economic Development Committee and there was a desire to
open the grant application period one more time for the rent relief program.
Discussion was held regarding funding including a utility assistance program, additional laptops,
updating phone system, workspace modifications, small business grants, mobile hot spots ,
temporary employees for cleaning of City facilities and assets, and rental assistance.
Council Direction: No direction was given.
ADJOURNMENT
The meeting adjourned at 7:51 p.m. No other action was taken. Audio/Visual was successful.
Brandy Rinearson, MMC, City Clerk Robert Putaansuu, Mayor
Page 48 of 189
City of Port Orchard
216 Prospect Street, Port Orchard, WA 98366
(360) 876-4407 • FAX (360) 895-9029
Agenda Staff Report
Agenda Item No.: Public Hearing 6A Meeting Date:
October 13, 2020
Subject: Adoption of an Ordinance Proposing Prepared by: Nick Bond, AICP
Revisions to Port Orchard Municipal DCD Director
Code Chapter 3.48 Multifamily Property Atty Routing No.: N/A
Tax Exemption Atty Review Date: N/A
Summary: In June 2016, the City adopted Chapter 3.48 POMC (Multifamily Property Tax Exemption),
Ord. 023-16, to encourage the development of additional multifamily housing, including affordable
housing units, and to encourage the redevelopment and revitalization of targeted neighborhoods
within the City’s designated Centers. At the City Council’s direction, in 2020 the Land Use Committee
has worked with staff to propose revised standards for the City’s multifamily tax exemption (MFTE)
framework to provide more stringent requirements for affordability, public benefit, and long-term City
revenues, as summarized below:
1. Type 1 tax exemption provides 12-year exemptions for affordable housing in centers and for
other selected properties, and provides additional standards to be met. It also requires that the
affordable units be significantly more affordable than is currently required.
2. Type 2 tax exemption is an 8-year exemption to encourage redevelopment with very few
strings attached, and recognizes the relatively higher cost of redevelopment as compared to
greenfield development. The City can designate sites that it would like to encourage for
redevelopment on this map. Sites with abandoned buildings, underutilized buildings, or sites
where improvement to land value ratios are at least 2:1 are included.
3. Type 3 tax exemption is an 8-year exemption for what would generally be characterized as
greenfield development, where the City only provides the incentive if certain performance
standards are met. Examples of these performance standards include structured parking
instead of surface parking, constructing mixed use buildings as part of a proposed project, or
purchasing additional height through the City’s transfer of development rights (TDR) program
and building taller buildings with higher assessed valuations. With this approach, the City is
seeking win-win projects where the incentive results in higher value projects than would
otherwise be constructed, in the absence of an incentive resulting in increased long-term
revenues for the City.
The proposed revisions also clarify that in order to be eligible for MFTE, a property must either be in a
center as designated in the Comprehensive Plan, or it must have been designated on Figure 1:
Alternative 1 in the original 2016 MFTE ordinance. Going forward, if any other properties are proposed
for MFTE, either the Comprehensive Plan center boundaries would have to be amended before the
City Council amends the MFTE maps, or the City Council would have to amend the MFTE criteria in this
Page 49 of 189
Public Hearing 6A
Page 2 of 3
ordinance to remove the requirement that MFTE only be offered in centers as designated in the
Comprehensive Plan.
The City Council reviewed the proposed revisions at the Council’s September 15 work-study meeting,
and directed staff to bring an ordinance to the full Council for a public hearing and approval.
Recommendation: Staff recommends that the City Council hold a public hearing on the ordinance
amending POMC Chapter 3.48.
Relationship to Comprehensive Plan: The City’s multifamily tax exemption program supports a
number of Comprehensive Plan goals and policies, including:
Policy LU-1 Provide a variety of housing types and employment opportunities that meet the needs
of diverse socioeconomic interests.
Policy LU-17 Incentivize infill development to preserve and protect open space, critical areas and
natural resources.
Policy LU-28 In conjunction with the proposed Centers strategy, enhance downtown Port Orchard’s
role as the center of the South Kitsap region, reflecting the following principles in development
standards and land use plans:
• Encourage land uses that support transit centers and promote pedestrian activity.
• Promote a mix of uses, including retail, office, and housing.
• Encourage uses that will provide both daytime and evening activities.
• Support civic, cultural, and entertainment activities.
• Provide sufficient public open space and recreational opportunities.
• Enhance, and provide access to, the waterfront.
• Develop enhanced design guidelines and design review requirements that promote attractive,
pedestrian-scale development and redevelopment within the City’s historic downtown area.
Policy CN-1 Prioritize the City’s residential, commerical and light industrial growth and infrastructure
investments within designated Centers, in accordance with VISION 2040 and the Countywide Planning
Policies.
Policy CN-2 Balance objectives for accommodating growth, encouraging compatibility, promoting
housing affordability, and offering a wide range of housing types.
Policy CN-10 The City should support employment growth, the increased use of non-automobile
transportation options, and the preservation of the character of existing built-up areas by encouraging
residential and mixed-use development at increased densities in designated Centers.
Policy CN-11 The City shall ensure that higher density development in Centers is either within walking
or biking distance of jobs, schools, and parks or is well-served by public transit.
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Public Hearing 6A
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Policy HS-4 Adopt zoning and development regulations that will have the effect of minimizing
housing costs and maximizing housing options.
Policy HS-7 Consider the creation of zoning and other land use incentives for the private
construction of affordable and special needs housing as a percentage of units in multi-family
development.
Policy HS-8 Consider adopting incentives for development of affordable multi-family homes through
property tax abatement in accordance with 84.14 RCW, focusing on designated mixed-use local centers
with identified needs for residential infill and redevelopment.
Policy HS-14 Implement zoning and development regulations which encourage infill housing on
empty and redevelopable parcels.
Policy HS-1 Consider programs to preserve or rehabilitate neighborhoods and areas that are
showing signs of deterioration due to lack of maintenance or abandonment.
Ruby Creek Subarea Plan Goal LU-1 Accommodate enough residential development in the Ruby Creek
Countywide Center to ensure a thriving business district.
Ruby Creek Subarea Plan Policy LU-1: Allowed uses, building types, and height limits should
accommodate at least 1,800 residents in the Ruby Creek Countywide Center.
Ruby Creek Subarea Plan Goal H-2: Provide housing serving a mix of income levels that may be owner
occupied or rental housing.
Ruby Creek Subarea Plan Policy H-2: Offer 12-year multifamily tax exemptions throughout
the center in support of affordable housing.
Fiscal Impact: N/A
Alternatives: Do not approve the ordinance; direct staff to make changes to the ordinance.
Attachments: Ordinance; Redline Revisions to Chapter 3.48.
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ORDINANCE NO. ___
AN ORDINANCE OF THE CITY OF PORT ORCHARD, WASHINGTON, AMENDING
CHAPTER 3.48 (MULTIFAMILY PROPERTY TAX EXEMPTION) OF THE PORT ORCHARD
MUNICIPAL CODE; PROVIDING FOR SEVERABILITY AND CORRECTIONS; AND
ESTABLISHING AN EFFECTIVE DATE.
WHEREAS, on July 26, 2016, the City Council adopted Ordinance No. 023-16, which
created Chapter 3.48 of the Port Orchard Municipal Code (Multifamily Property Tax
Exemption); and
WHEREAS, POMC Section 3.48.030(3) provides that the City Council may amend the
designated residential targeted areas; and
WHEREAS, on January 15, 2019, the City Council adopted Ordinance No. 003-19, which
amended POMC Chapter 3.48; and
WHEREAS, the City Council wishes to encourage increased residential opportunities,
including affordable housing units, within those areas of the city designated as residential
targeted areas in Figure 1: Alternative 1 in POMC 3.48, and in those areas of the city designated
as centers in the City’s Comprehensive Plan; and
WHEREAS, the City Council wishes to further the City's goals of redevelopment and
additional, affordable residential units within the City's downtown area, which is likely to
have higher costs for development and redevelopment due to the nature of building below-
grade parking and building on shoreline fill; and
WHEREAS, the City Council wishes to stimulate rehabilitation and redevelopment of
existing vacant and underutilized buildings and properties for multifamily housing in
designated residential targeted areas and centers, to increase and improve housing
opportunities, including affordable housing; and
WHEREAS, the City Council wishes to amend the requirements for 12-year tax
exemptions to increase the standards to be met and to obtain a greater percentage of
housing that is more affordable than currently required, in order to maximize public benefit;
and
WHEREAS, the City Council wishes to amend the requirements for 8-year tax
exemptions to require that certain performance and project value standards are met, in
order to maximize public benefit; and
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WHEREAS, on July 6, 2020, the City Council’s Land Use Committee reviewed the
amendments to Chapter POMC 3.48, and recommended that they be forwarded to the full
City Council for review and approval; and
WHEREAS, on July 8, 2020, the City submitted the proposed amendments to POMC
Chapter 3.48 to the Department of Commerce along with a 60-day request for review; and
WHEREAS, on July 17, 2020, the City’s SEPA official issued a determination of non-
significance for the proposed amendments to POMC Chapter 3.48, and there have been no
appeals; and
WHEREAS, on September 15, 2020, the City Council reviewed the amendments at its
work-study meeting, and directed staff to bring the amendments forward for Council
adoption with certain changes; and
WHEREAS, the City Council, after careful consideration of the recommendation from
the Planning Commission, all public comment, and the Ordinance, finds that this Ordinance
is consistent with the City’s Comprehensive Plan and development regulations, the Growth
Management Act, Chapter 36.70A RCW, and that the amendments herein are in the best
interests of the residents of the City; now, therefore,
THE CITY COUNCIL OF THE CITY OF PORT ORCHARD, WASHINGTON, DO ORDAIN AS
FOLLOWS:
SECTION 1. Findings and Recitals. The recitals set forth above are hereby adopted and
incorporated as findings in support of this Ordinance.
SECTION 2. Chapter 3.48 of the Port Orchard Municipal Code is hereby amended to read
as follows:
Sections:
3.48.010 Purpose.
3.48.020 Definitions.
3.48.030 Residential targeted areas – Criteria – Designation.
3.48.040 Residential targeted areas – Types 1 through 3
3.48.040 Terms of the tax exemption.
3.48.050 Project eligibility.
3.48.060 Application procedure.
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3.48.070 Application review – Issuance of conditional certificate – Denial – Appeal.
3.48.080 Extension of conditional certificate.
3.48.090 Application for final certificate.
3.48.100 Issuance of final certificate.
3.48.110 Annual compliance review – Reporting.
3.48.120 Cancellation of tax exemption.
3.48.130 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.
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.
(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.
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(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 rehabilitated 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.
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:
(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 Port Orchard 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.
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(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.
3.48.040 Designated residential targeted areas – Types 1 through 3.
In accordance with section 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% 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:
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1. 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:
• At or below 40% of median family income, for housing units in
congregate residences or small efficiency dwelling units;
• At or below 65% of median family income for one-bedroom units;
• At or below 75% of median family income for two-bedroom units; and
• At or below 80% of median family income for three-bedroom and larger
units.
2. If calculations for the minimum 20 percent of the residential units required under 1. of this
subsection 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
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(2) Type 2: Redevelopment Areas.
(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: (1) have abandoned
buildings (vacant or unused for more than two years); (2) underutilized buildings (50% or more
vacancy for more than two years); or (3) contain existing structures and improvements with an
assessed building value to land ratio of 2:1 or more.
(b) Residential development in a Type 2 residential targeted area is eligible to be considered
for 8-year tax exemption.
(c) No affordable housing component is required.
(d) For certain parcels, rezoning may be required for multifamily or mixed-use development.
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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 8-year tax exemption.
(c) No affordable housing component is required.
(d) The proposed development shall include at least one of the following:
1. At least 50% 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, and/or below grade; and the project should achieve at least 50 units per
net developable acre (excluding critical areas and buffers, and other land that is
undevelopable such as shoreline buffers and tidelands).
2. Construct mixed-use shopfront building type development (refer to POMC 20.32)
containing non-residential/non-parking garage square footage that measures at
least 40% of the total building footprint square footage for all buildings on the
development site. The non-residential/non-parking garage square footage may be in
one or more buildings on the site. Live-work units shall be considered as non-
residential square footage for the purpose of achieving the required 40% minimum,
provided that the units are designed as shopfronts along a public street.
3. Purchase one additional story of building height for one or more buildings through
the city’s transfer of development rights (TDR) program (refer to POMC 20.41) and
construct (a) building(s) that utilizes the additional height allowance.
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Figure 3: Type 3 Tax Exemption Map
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 8-year and 12-year exemptions, the exemption begins on January 1st 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 3.48.040(1)(c) shall continue to be
made available for the length of the exemption period.
(iii) 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.
(iv) When a project includes more than one building with multifamily housing units, all
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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 non-housing-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.
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
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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.
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:
(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.
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(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.
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:
(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
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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 there is no substantial evidence on the record to support the
director’s decision. The city council’s decision on appeal will be final.
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.
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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:
(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.
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:
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(a) The improvements were not completed within the authorized time period;
(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.
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;
(g) The value of the tax exemption for the project; and
(h) Any additional information requested by the city pursuant to meeting any reporting
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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 31st of each year.
3.48.130 Cancellation of tax exemption.
(1) The director may cancel a tax exemption on a property if he/she determines 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.
(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
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Ordinance No. ___
Page 17 of 18
hearing. No appeal to the city council is provided from the hearing examiner’s decision.
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.
SECTION 3. Corrections. Upon the approval of the city attorney, the city clerk and/or
code publisher is authorized to make any necessary technical corrections to this ordinance,
including but not limited to the correction of scrivener’s/clerical errors, references,
ordinance numbering, section/subsection numbers, and any reference thereto.
SECTION 4. Severability. If any section, subsection, paragraph, sentence, clause, or
phrase of this ordinance is declared unconstitutional or invalid for any reason, such decision
shall not affect the validity of the remaining parts of this ordinance.
SECTION 5. Effective Date. This ordinance shall be published in the official newspaper of
the city and shall take full force and effect five (5) days after the date of publication. A
summary of this ordinance in the form of the ordinance title may be published in lieu of
publishing the ordinance in its entirety.
PASSED by the City Council of the City of Port Orchard, APPROVED by the Mayor and
attested by the City Clerk in authentication of such passage this 13th day of October 2020.
Robert Putaansuu, Mayor
ATTEST:
______
Brandy Rinearson, MMC, City Clerk
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Ordinance No. ___
Page 18 of 18
APPROVED AS TO FORM: Sponsored by:
Charlotte A. Archer, City Attorney Scott Diener, Councilmember
PUBLISHED:
EFFECTIVE DATE:
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Chapter 3.48
MULTIFAMILY PROPERTY TAX EXEMPTION
REVISIONS IN REDLINE
Sections:
3.48.010 Purpose.
3.48.020 Definitions.
3.48.030 Residential targeted areas – Criteria – Designation.
3.48.040 Residential targeted areas – Types 1 through 3
3.48.040 Terms of the tax exemption.
3.48.050 Project eligibility.
3.48.060 Application procedure.
3.48.070 Application review – Issuance of conditional certificate – Denial – Appeal.
3.48.080 Extension of conditional certificate.
3.48.090 Application for final certificate.
3.48.100 Issuance of final certificate.
3.48.110 Annual compliance review – Reporting.
3.48.120 Cancellation of tax exemption.
3.48.130 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.
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.
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(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.
(54) “High-cost area” means the definition provided for in RCW 84.14.010.
(65) “Household” means the definition provided for in RCW 84.14.010.
76) “Low-income household” means the definition provided for in RCW 84.14.010.
(8) “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.
(9) “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.
(107) “Moderate-income household” means the definition provided for in RCW 84.14.010.
(118) “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 rehabilitated or conversion of vacant,
underutilized, or substandard buildings to multifamily housing.
(129) “Owner” means the definition provided for in RCW 84.14.010.
(130) “Permanent residential occupancy” means the definition provided for in RCW 84.14.010.
(141) “Rehabilitation improvements” means the definition provided for in RCW 84.14.010.
(152) “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.
(163) “Substantial compliance” means the definition provided for in RCW 84.14.010.
(174) “Urban center” means the definition provided for in RCW 84.14.010.
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:
(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 Port Orchard Ordinance 023-16; and
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(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.
(4) The following areas are designated as residential targeted areas under this chapter, as shown on the
map labeled Figure 1: Alternative 1:
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Figure 1: Alternative 1
(5) If a part of any legal lot is within a designated residential targeted area then the entire lot shall be
deemed to lie within such residential targeted area. Property located outside of, but adjacent to, the
described areas is not designated as residential targeted areas.
3.48.040 Designated residential targeted areas – Types 1 through 3.
In accordance with section 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% 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.
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(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:
1. 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:
• At or below 40% of median family income, for housing units in congregate
residences or small efficiency dwelling units;
• At or below 65% of median family income for one-bedroom units;
• At or below 75% of median family income for two-bedroom units; and
• At or below 80% of median family income for three-bedroom and larger units.
2. If calculations for the minimum 20 percent of the residential units required under 1. of this subsection
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
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(2) Type 2: Redevelopment Areas.
(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: (1) have abandoned buildings (vacant or unused for more than
two years); underutilized buildings (50% or more vacancy for more than two years); or (3) contain
existing structures and improvements with an assessed building value to land ratio of 2:1 or lessmore.
(b) Residential development in a Type 2 residential targeted area is eligible to be considered for 8-
year tax exemption.
(c) No affordable housing component is required.
(d) For certain parcels, rezoning may be required for multifamily or mixed usemixed-use
development.
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.
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(b) Residential development in a Type 3 residential targeted area is eligible to be considered for an
8-year tax exemption.
(c) No affordable housing component is required.
(d) The proposed development shall include at least one of the following:
1. At least 50% 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, and/or
below grade; and the project should achieve at least 50 units per net developable acre
(excluding critical areas and buffers, and other land that is undevelopable such as shoreline
buffers and tidelands).
2. Construct mixed-use shopfront building type development (refer to POMC 20.32) containing
non-residential/non-parking garage square footage that measures at least 40% of the total
building footprint square footage for all buildings on the development site. The non-
residential/non-parking garage square footage may be in one or more buildings on the site.
Live-work units shall be considered as non-residential square footage for the purpose of
achieving the required 40% minimum, provided that the units are designed as shopfronts
along a public street.
3. Purchase one additional story of building height for one or more buildings through the city’s
transfer of development rights (TDR) program (refer to POMC 20.41) and construct (a)
building(s) that utilizes the additional height allowance.
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Figure 3: Type 3 Tax Exemption Map
3.48.0540 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) Within the areas shown as “8 Year Eligible Area” and “12 Year Eligible Area” in Figure 1 of this
chapter, for eight successive years beginning January 1st of the year immediately following the
calendar year of issuance of the certificate. No requirements for affordable housing are required for
an eight-year tax exemption within either of these areas; or
(b) Within the area shown as “12 Year Eligible Area” in Figure 1 of this chapter, for 12 successive
years beginning January 1st of the year immediately following the calendar year of issuance of the
certificate, if the property otherwise qualifies for the exemption under this chapter and meets the
conditions in this subsection. For the property to qualify for the 12-year exemption under this
subsection, the applicant must commit to renting or selling at least 20 percent of the multifamily
housing units as affordable housing units to low- and moderate-income households, and the
property must satisfy that commitment and any additional affordability and income eligibility
conditions adopted by the city under this chapter. In the case of projects intended exclusively for
owner occupancy, the minimum requirement of this subsection may be satisfied solely through
housing affordable to moderate-income households.
(a) For both 8-year and 12-year exemptions, the exemption begins on January 1st of the year
immediately following the calendar year of issuance of the tax exemption certificate.
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(i) If calculations for the minimum 20 percent of the multifamily housing units required under this
subsection result in a fraction, then the minimum number of multifamily housing units for affordable
housing shall be rounded up to the next whole number. (moved to Type I)
(b)(ii) In projects granted For 12-year exemptions, the number of residentialhousing units identified
to meet the requirements for an affordable housing component per 3.48.040(1)(c)for households with
low, affordable, or moderate annual income shall continue to be made available to low, affordable, or
moderate households for the length of the exemption period.
(iii) The mix and configuration of housing units (e.g., studio, one-bedroom, two-bedroom) used
to meet the requirement for affordable units under this subsection shall be substantially
proportional to the mix and configuration of the total housing units in the project.
(iv) 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 non-housing-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.
3.48.0650 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 defined in POMC
3.48.0430.
(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
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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.
(6) Compliance with Guidelines and Standards. The project must be designed to comply with the city’s
comprehensive plan, building, housing, and zoning codes, and any other applicable regulations. The
project must also comply with any other standards and guidelines adopted by the city council for the
residential targeted area. (moved to 3.48.040
3.48.0760 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:
(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)(cb).
(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.
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(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.
3.48.0870 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:
(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 3.48.1210.
(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 3.48.0980 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
there is no substantial evidence on the record to support the director’s decision. The city council’s
decision on appeal will be final.
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3.48.0980 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.
3.48.100090 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:
(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.
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3.48.1100 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;
(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.
3.48.12010 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
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household at the time of initial occupancy or the income of each purchaser of owner-occupied units
at the time of purchase;
(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 31st of each
year.
3.48.13020 Cancellation of tax exemption.
(1) The director may cancel a tax exemption on a property if he/she determines 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 3.48.1210.
(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.
(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.
3.48.14030 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.
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City of Port Orchard
216 Prospect Street, Port Orchard, WA 98366
(360) 876-4407 • FAX (360) 895-9029
Agenda Staff Report
Agenda Item No.: Business Item 7A Meeting Date:
October 13, 2020
Subject: Adoption of an Ordinance Revising Port Prepared by: Nick Bond, AICP
Orchard Municipal Code Chapter 3.48 DCD Director
Multifamily Property Tax Exemption Atty Routing No.: N/A
Atty Review Date: N/A
Summary: See staff report for Public Hearing.
Recommendation: Staff recommends that the City Council vote to approve an ordinance adopting
revisions to POMC Chapter 3.48.
Motion for Consideration: “I move to approve an ordinance adopting revisions to POMC Chapter
3.48.”
Relationship to Comprehensive Plan: See staff report for Public Hearing.
Fiscal Impact: N/A
Alternatives: Do not approve the ordinance; direct staff to make changes to the ordinance.
Attachments: Ordinance.
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ORDINANCE NO. ____
AN ORDINANCE OF THE CITY OF PORT ORCHARD, WASHINGTON,
AMENDING CHAPTER 3.48 (MULTIFAMILY PROPERTY TAX EXEMPTION) OF
THE PORT ORCHARD MUNICIPAL CODE; PROVIDING FOR SEVERABILITY AND
CORRECTIONS; AND ESTABLISHING AN EFFECTIVE DATE.
WHEREAS, on July 26, 2016, the City Council adopted Ordinance No. 023-16, which
created Chapter 3.48 of the Port Orchard Municipal Code (Multifamily Property Tax
Exemption); and
WHEREAS, POMC Section 3.48.030(3) provides that the City Council may amend the
designated residential targeted areas; and
WHEREAS, on January 15, 2019, the City Council adopted Ordinance No. 003-19, which
amended POMC Chapter 3.48; and
WHEREAS, the City Council wishes to encourage increased residential opportunities,
including affordable housing units, within those areas of the city designated as residential
targeted areas in Figure 1: Alternative 1 in POMC 3.48, and in those areas of the city designated
as centers in the City’s Comprehensive Plan; and
WHEREAS, the City Council wishes to further the City's goals of redevelopment and
additional, affordable residential units within the City's downtown area, which is likely to have
higher costs for development and redevelopment due to the nature of building below-grade
parking and building on shoreline fill; and
WHEREAS, the City Council wishes to stimulate rehabilitation and redevelopment of
existing vacant and underutilized buildings and properties for multifamily housing in
designated residential targeted areas and centers, to increase and improve housing
opportunities, including affordable housing; and
WHEREAS, the City Council wishes to amend the requirements for 12-year tax exemptions
to increase the standards to be met and to obtain a greater percentage of housing that is more
affordable than currently required, in order to maximize public benefit; and
WHEREAS, the City Council wishes to amend the requirements for 8-year tax exemptions
to require that certain performance and project value standards are met, in order to maximize
public benefit; and
WHEREAS, on July 6, 2020, the City Council’s Land Use Committee reviewed the
amendments to Chapter POMC 3.48, and recommended that they be forwarded to the full
City Council for review and approval; and
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WHEREAS, on July 8, 2020, the City submitted the proposed amendments to POMC
Chapter 3.48 to the Department of Commerce along with a 60-day request for review; and
WHEREAS, on July 17, 2020, the City’s SEPA official issued a determination of non-
significance for the proposed amendments to POMC Chapter 3.48, and there have been no
appeals; and
WHEREAS, on September 15, 2020, the City Council reviewed the amendments at its
work-study meeting, and directed staff to bring the amendments forward for Council
adoption with certain changes; and
WHEREAS, the City Council, after careful consideration of the recommendation from
the Planning Commission, all public comment, and the Ordinance, finds that this Ordinance
is consistent with the City’s Comprehensive Plan and development regulations, the Growth
Management Act, Chapter 36.70A RCW, and that the amendments herein are in the best
interests of the residents of the City; now, therefore,
THE CITY COUNCIL OF THE CITY OF PORT ORCHARD, WASHINGTON, DO ORDAIN AS
FOLLOWS:
SECTION 1. Findings and Recitals. The recitals set forth above are hereby adopted and
incorporated as findings in support of this Ordinance.
SECTION 2. Chapter 3.48 of the Port Orchard Municipal Code is hereby amended to read
as follows:
Sections:
3.48.010 Purpose.
3.48.020 Definitions.
3.48.030 Residential targeted areas – Criteria – Designation.
3.48.040 Residential targeted areas – Types 1 through 3
3.48.040 Terms of the tax exemption.
3.48.050 Project eligibility.
3.48.060 Application procedure.
3.48.070 Application review – Issuance of conditional certificate – Denial – Appeal.
3.48.080 Extension of conditional certificate.
3.48.090 Application for final certificate.
3.48.100 Issuance of final certificate.
3.48.110 Annual compliance review – Reporting.
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3.48.120 Cancellation of tax exemption.
3.48.130 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.
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.
(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
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dwelling units not designed or used as transient accommodations and not including hotels and
motels. Multifamily units may result from new construction or rehabilitated 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.
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:
(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 Port Orchard 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
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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.
3.48.040 Designated residential targeted areas – Types 1 through 3.
In accordance with section 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% 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:
1. 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:
• At or below 40% of median family income, for housing units in
congregate residences or small efficiency dwelling units;
• At or below 65% of median family income for one-bedroom units;
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• At or below 75% of median family income for two-bedroom units; and
• At or below 80% of median family income for three-bedroom and larger
units.
2. If calculations for the minimum 20 percent of the residential units required under 1. of this
subsection 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.
(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: (1) have abandoned
buildings (vacant or unused for more than two years); (2) underutilized buildings (50% or more
vacancy for more than two years); or (3) contain existing structures and improvements with an
assessed building value to land ratio of 2:1 or more.
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(b) Residential development in a Type 2 residential targeted area is eligible to be considered
for 8-year tax exemption.
(c) No affordable housing component is required.
(d) For certain parcels, rezoning may be required for multifamily or mixed-use development.
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 8-year tax exemption.
(c) No affordable housing component is required.
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(d) The proposed development shall include at least one of the following:
1. At least 50% 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, and/or below grade; and the project should achieve at least 50 units per
net developable acre (excluding critical areas and buffers, and other land that is
undevelopable such as shoreline buffers and tidelands).
2. Construct mixed-use shopfront building type development (refer to POMC 20.32)
containing non-residential/non-parking garage square footage that measures at
least 40% of the total building footprint square footage for all buildings on the
development site. The non-residential/non-parking garage square footage may be in
one or more buildings on the site. Live-work units shall be considered as non-
residential square footage for the purpose of achieving the required 40% minimum,
provided that the units are designed as shopfronts along a public street.
3. Purchase one additional story of building height for one or more buildings through
the city’s transfer of development rights (TDR) program (refer to POMC 20.41) and
construct (a) building(s) that utilizes the additional height allowance.
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Figure 3: Type 3 Tax Exemption Map
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 8-year and 12-year exemptions, the exemption begins on January 1st 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 3.48.040(1)(c) shall continue to be
made available for the length of the exemption period.
(iii) 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.
(iv) 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.
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(2) Limits on Exemption. The exemption does not apply:
(a) To the value of land or to the value of non-housing-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.
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.
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(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.
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:
(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.
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
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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:
(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
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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 there is no substantial evidence on the record to support the
director’s decision. The city council’s decision on appeal will be final.
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.
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:
(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;
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(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.
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;
(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.
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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;
(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 31st of each year.
3.48.130 Cancellation of tax exemption.
(1) The director may cancel a tax exemption on a property if he/she determines any of the
following:
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(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.
(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.
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.
SECTION 3. Corrections. Upon the approval of the city attorney, the city clerk and/or
code publisher is authorized to make any necessary technical corrections to this ordinance,
including but not limited to the correction of scrivener’s/clerical errors, references, ordinance
numbering, section/subsection numbers, and any reference thereto.
SECTION 4. Severability. If any section, subsection, paragraph, sentence, clause, or
phrase of this ordinance is declared unconstitutional or invalid for any reason, such decision shall
not affect the validity of the remaining parts of this ordinance.
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SECTION 5. Effective Date. This ordinance shall be published in the official newspaper of
the city and shall take full force and effect five (5) days after the date of publication. A summary
of this ordinance in the form of the ordinance title may be published in lieu of publishing the
ordinance in its entirety.
PASSED by the City Council of the City of Port Orchard, APPROVED by the Mayor and attested
by the City Clerk in authentication of such passage this 13th day of October 2020.
Robert Putaansuu, Mayor
ATTEST:
____________________________
Brandy Rinearson, MMC, City Clerk
APPROVED AS TO FORM: SPONSOR:
Charlotte A. Archer, City Attorney Scott Diener, Councilmember
PUBLISHED:
EFFECTIVE DATE:
Page 101 of 189
City of Port Orchard
216 Prospect Street, Port Orchard, WA 98366
(360) 876-4407 • FAX (360) 895-9029
Agenda Staff Report
Agenda Item No.: Business Item 7B Meeting Date:
October 13, 2020
Subject: Adoption of an Ordinance Adopting Prepared by: Nick Bond, AICP
Amendments to Port Orchard DCD Director
Municipal Code Chapter 20.26 Atty Routing No.: Development-Matter 11
Development Agreements Atty Review Date: August 17, 2020
Summary: Chapter 20.26 POMC currently contains standards and procedures governing the City’s use of
development agreements, which can be entered into between the City and applicants to provide flexibility
in the application of development standards. The City Council, City Attorney and DCD staff have identified a
number of proposed improvements to the existing code to clarify the standards that may be addressed in a
development agreement, to provide more specificity on the application and processing requirements and
the decision type, and to strengthen requirements for additional public benefit for development agreement
extensions. These revisions have been incorporated into an ordinance for review and adoption.
The Planning Commission held a public hearing on the proposed amendments to Chapter 20.26 POMC on
October 6, 2020, and voted to recommend that the City Council approve an ordinance adopting the
amendments. The Land Use committee reviewed the amendments on October 7, 2020, and directed staff
to bring the ordinance to the full Council for review and adoption on October 13.
Recommendation: Staff recommends that the City Council vote to approve an ordinance adopting
amendments to Chapter 20.26 POMC.
Relationship to Comprehensive Plan: N/A
Motion for Consideration: “I move to adopt an ordinance adopting amendments to Chapter 20.26
POMC.”
Fiscal Impact: N/A
Alternatives: Direct staff to revise the ordinance; do not adopt an ordinance.
Attachments: Ordinance.
Page 102 of 189
ORDINANCE NO. ___
AN ORDINANCE OF THE CITY OF PORT ORCHARD, WASHINGTON,
RELATING TO DEVELOPMENT AGREEMENTS; AMENDING SECTION
20.22.020 OF THE PORT ORCHARD MUNICIPAL CODE FOR
CONSISTENCY WITH THE APPEAL PROVISIONS FOR DEVELOPMENT
AGREEMENT CONTAINED IN CHAPTER 20.26 OF THE PORT
ORCHARD MUNICIPAL CODE, AMENDING PORT ORCHARD
MUNICIPAL CODE CHAPTER 20.26 TO ADD CLARITY ON THE USE
AND PROCEDURES FOR DEVELOPMENT AGREEMENTS AND TO
MAKE SUCH AGREEMENTS CONSISTENT WITH CURRENT LAW,
AMENDING SECTIONS 20.26.010, 20.26.030, 20.26.050 AND
ADDING NEW SECTIONS 20.26.060 AND 20.26.070; PROVIDING
FOR SEVERABILITY; AND ESTABLISHING AN EFFECTIVE DATE.
WHEREAS, pursuant to RCW 36.70B.170, the City Council has the authority to review and
enter into development agreements that govern the development and use of real property within
the City; and
WHEREAS, such agreements are advantageous to both municipalities and applicants by
facilitating certainty and stability in the land use permitting process, while also providing
flexibility in the innovative application of local development standards, often leading to enhanced
project design and infrastructure improvements for the public; and
WHEREAS, the City Council adopted standards and procedures governing the City’s use
of development agreements, codified at Chapter 20.26 of the Port Orchard Municipal Code
(POMC); and
WHEREAS, the City Council desires to adopt the amendments to those regulations set
forth in this ordinance to enhance the City’s ability to utilize development agreements for the
benefit of the City and public; and
WHEREAS, this Ordinance was submitted to the Department of Commerce for review on
April 2, 2020, and review was granted on April 3, 2020; and
WHEREAS, on April 17, 2020, the City’s SEPA official issued a determination of
nonsignificance for the proposed revisions, and there have been no appeals; and
WHEREAS, the Planning Commission conducted a public hearing on the substance of this
Ordinance on XXXX, and recommended adoption by the City Council; and
WHEREAS, the City Council, after careful consideration of the recommendation from the
Planning Commission, all public comment, and the Ordinance, finds that this Ordinance is
consistent with the City’s Comprehensive Plan and development regulations, the Growth
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Management Act, Chapter 36.70A RCW, and that the amendments herein are in the best
interests of the residents of the City and further advance the public health, safety and welfare;
now, therefore,
THE CITY COUNCIL OF THE CITY OF PORT ORCHARD, WASHINGTON, DO ORDAIN AS
FOLLOWS:
SECTION 1. Findings and Recitals. The recitals set forth above are hereby adopted and
incorporated as findings in support of this Ordinance.
SECTION 2. Section 20.22.020 of the Port Orchard Municipal Code is hereby amended to
add a footnote “2” and read as follows:
20.22.020 Determination of types – Table.
(1) Determination of Proper Decision Type. The director shall determine the proper review
procedure for all land use and development permit applications and actions. If there is a
question as to the appropriate type of process, the director shall resolve it in favor of the higher
process type number.
(2) Optional Consolidated Permit Processing. An application that involves two or more
procedures may be processed collectively under the highest numbered procedure required for
any part of the application or processed individually under each of the procedures identified by
the code. The applicant may determine whether the application shall be processed collectively
or individually. If the application is processed under the individual procedures option, the
highest numbered type procedure must be processed prior to the subsequent lower numbered
procedure. If the individual procedure option is chosen, the applicant will be eligible for any fee
reduction contained in the current fee schedule.
Table 20.22.020 – Permit Review Type Classifications
Type I
Director
Decision
Judicial Appeal
Type II
Director Decision
HE Appeal
Type III
HE Decision
Judicial Appeal
Type IV
City Council Decision
Judicial Appeal
Type V
City Council Decision
GMHB Appeal
Building
Permit1 (Subtitl
e X of this title)
Binding Site
Plan, Final
Short Plat,
Preliminary,
Alteration of
Preliminary,
Alteration of
Final, Vacation
Preliminary Plat,
Preliminary Plat Major
Modifications,
Alteration of Final,
Vacation of Final
Final Plat
(Chapter 20.90 POMC)
Site-Specific Rezone
without
Comprehensive Plan
Development
Agreement
(Chapter 20.26
POMC)
Comprehensive
Plan
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Table 20.22.020 – Permit Review Type Classifications
Type I
Director
Decision
Judicial Appeal
Type II
Director Decision
HE Appeal
Type III
HE Decision
Judicial Appeal
Type IV
City Council Decision
Judicial Appeal
Type V
City Council Decision
GMHB Appeal
(Chapter 20.94
POMC)
Preliminary Plat
– Minor
Modifications
(Chapter 20.88
POMC)
Minor Land
Disturbing
Activity Permit
(Chapter 20.140
POMC and
POMC 20.150.1
00)
Boundary Line
Adjustment
(Chapter 20.84
POMC)
Code
Interpretation
(Chapter 20.10
POMC)
Legal
Nonconforming
Permit
(Chapter 20.54
POMC)
Short Plat, Final
(Chapter 20.86
POMC)
Sign Permit (if
SEPA not
required)
(Chapter 20.132
POMC)
of Final
(Chapters 20.86
and 20.96 POMC
)
Temporary Use
Permit
(Chapter 20.58 P
OMC)
Binding Site Plan
– Preliminary,
Alteration of
Preliminary,
Alteration of
Final, Vacation
of Final
(Chapter 20.94 P
OMC)
Stormwater
Drainage Permit
(Chapter 20.150
POMC)
Sign Permit (if
SEPA required)
(Chapter 20.132
POMC)
Shoreline
Substantial
Development
Permit,
Administrative
(Chapter 20.164
POMC)
(Chapters 20.88 and 2
0.96 POMC)
Variance
(Chapter 20.28 POMC)
Conditional Use
Permit
(Chapter 20.50 POMC)
Shoreline Substantial
Development Permit,
Conditional Use
Permit, and
Nonadministrative
Variance
(Chapter 20.164 POM
C)
Planned Residential
Developments
Comprehensive Sign
Design Plan Permits
Final Plat – Alteration
or Vacation
(Chapter 20.96 POMC)
View Protection
Overlay District
(VPOD) Variance
(POMC 20.38.860)
Amendment
(Chapter 20.42 POMC)
Amendment –
Land Use Map
Amendment,
Text
Amendment
(Chapter 20.04
POMC)
Legislative
Zoning Map
Amendment
(Chapter 20.06
POMC)
POMC
Title 20 Code
Amendment
(Chapter 20.06
POMC)
Annexations2
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Table 20.22.020 – Permit Review Type Classifications
Type I
Director
Decision
Judicial Appeal
Type II
Director Decision
HE Appeal
Type III
HE Decision
Judicial Appeal
Type IV
City Council Decision
Judicial Appeal
Type V
City Council Decision
GMHB Appeal
Sign Variance
(Chapter 20.132
POMC)
Shoreline
Permit
Exemption
(Chapter 20.164
POMC)
Temporary Use
Permit,
Extension
(Chapter 20.58
POMC)
Major Land
Disturbing
Activity Permit
(Chapter 20.140
POMC and
POMC 20.150.10
0)
Variance –
Administrative
(Chapter 20.28 P
OMC)
Untyped review and decision actions: preapplication meeting (Chapter 20.24 POMC), design
review board review and recommendation (POMC 20.127.030), tax exemption for multifamily
development (Chapter 3.48 POMC), capacity reservation certificate (Chapter 20.180 POMC),
public works design variation, right-of-way permit (Chapter 12.04 POMC), street use permit
(Chapter 12.24 POMC), water/sewer connection permit (Chapter 13.04 POMC).
1 If a building permit application does not require SEPA review, no public notice is required. If
a building permit application requires SEPA review, public notice shall be provided
consistent with the requirements for Type II applications pursuant to Chapter 20.25 POMC.
2 A Development Agreement that is consolidated with a Type I, II, III, or IV project permit
application may be appealed pursuant to chapter 36.70C RCW.
SECTION 3. Amendment. Chapter 20.26 of the POMC is hereby amended to read as
follows:
POMC 20.26
PERMITTING AND DEVELOPMENT APPROVAL – DEVELOPMENT AGREEMENTS
DEVELOPMENT APPROVAL – DEVELOPMENT AGREEMENTS
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Sections:
20.26.010 Intent and discretionary nature. Purpose and authority.
20.26.020 Form of agreement, effect and general provisions.
20.26.030 Application requirements.
20.26.040 Phasing.
20.26.050 Processing procedures and appeals.
20.26.060 Discretionary legislative action.
20.26.070 Unauthorized fees prohibited.
20.26.010 Intent and discretionary nature. Purpose and authority.
The purpose of this chapter is to authorize the use of development agreements, consistent with
RCW 36.70B.170 through 36.70B.210. The city may, but under no circumstances is required to,
enter into a development agreement with a person having ownership or control of real property
within the city. The development agreement may address such project elements as those set
forth herein, pursuant to RCW 36.70B.170B(3). The development agreement shall be consistent
with the applicable development regulations of the city. The consideration provided by the
property owner for the city’s decision to enter into the development agreement may vary,
depending on the benefit the development agreement will provide to the city and/or the public
in general.
20.26.020 Form of agreement, effect and general provisions.
(1) Form. All development agreements shall be on the standard form approved in advance by the
city attorney for this purpose. A development agreement shall set forth the development
standards and other provisions that apply to and govern and vest the development, use, and
mitigation of the development of the real property for the duration specified in the agreement.
(a) For the purposes of this chapter, “development standards” may include, but are
not limited to:
i. Project elements such as residential densities, nonresidential densities and
intensities or building sizes;
ii. The amount and payment of impact fees imposed or agreed to in accordance
with any applicable provisions of state law, any reimbursement provisions,
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other financial contributions by the property owner, inspection fees, or
dedications;
iii. Mitigation measures, development conditions, and other requirements under
Chapter 43.21C RCW;
iv. Design standards such as maximum heights, setbacks, landscaping, and other
development features;
v. Affordable housing;
vi. Parks and open space preservation;
vii. Phasing;
viii. Review procedures and standards for implementing decisions;
ix. A build-out or vesting period for applicable standards; and
x. Any other development requirement or procedure deemed appropriate by the
City Council.
(b) In order to encourage innovative land use management and provide flexibility to
achieve public benefits, a development agreement adopted pursuant to this chapter may impose
development standards that differ from the following development regulations of the Port
Orchard Municipal Code, provided that any development standards imposed by the development
agreement shall be consistent with the comprehensive plan:
i. Chapter 20.08 Vesting
ii. Chapter 20.12: Definitions
iii. Chapter 20.30: Introduction of Zoning, Land Uses, and Building Types
iv. Chapter 20.32: Building Types
v. Chapter 20.33: Greenbelt Districts
vi. Chapter 20.34: Residential Districts
vii. Chapter 20.35: Commercial and Mixed-Use Districts
viii. Chapter 20.36 Industrial Districts
ix. Chapter 20.37: Civic and Open Space Districts
x. Chapter 20.38 Overlay Districts
xi. Chapter 20.39: Use Provisions
xii. Chapter 20.40: Site and Lot Dimensions
xiii. Chapter 20.41: Site and Lot Development
xiv. Chapter 20.54: Non-Conformities
xv. Chapter 20.68: Accessory Dwelling Units
xvi. Chapter 20.80 Subdivision – General Provisions
xvii. Chapter 20. 82 Administration and Enforcement
xviii. Chapter 20. 84 Boundary Line Adjustments
xix. Chapter 20.86: Short Subdivisions
xx. Chapter 20.88: Subdivisions – Preliminary Plats
xxi. Chapter 20.90: Subdivisions – Final Plats
xxii. Chapter 20.94: Binding Site Plans
xxiii. Chapter 20.96: Vacation and Alteration of Final Plans and Short Plats
xxiv. Chapter 20.98 Improvements
xxv. Chapter 20.100 Development Standards – Subdivision Design
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xxvi. Chapter 20.120 Development Standards General Provisions
xxvii. Chapter 20.122: Building Elements
xxviii. Chapter 20.124: Development Standards – Parking and Circulation
xxix. Chapter 20.127: Design Standards
xxx. Chapter 20.128: Landscaping
xxxi. Chapter 20.129: Significant Trees
xxxii. Chapter 20.139: Residential Design Standards
xxxiii. Chapter 20.162: Critical Areas Regulations
xxxiv. 20.164 Shoreline Master Program
xxxv. Chapter 20.182: Impact Fees
(c) A development agreement shall not modify any provision of the Port Orchard
Municipal Code that is not identified in subsection (b) of this section.
(d) A development agreement may modify the provisions of the Port Orchard
Municipal Code only if the City Council determines that the requested modifications are
necessary to provide flexibility to achieve public benefits and provide superior outcomes than
those that would result from strict compliance with the other applicable development standards.
(e) Any approved development standards that differ from those other applicable
development standards shall not require any further zoning reclassification, variance from City
standards or other City approval apart from development agreement approval.
(f) Subsequently adopted standards which differ from those in the development
agreement shall apply to the subject site where necessary to address a serious threat to public
health and safety or where the development agreement specifies a time period or phase after
which certain identified standards may be modified. Building permit applications shall be subject
to the building and construction codes in effect when the building permit application is deemed
complete.
(2) Decision Type. Development agreements are a Type V action and shall be reviewed and
approved pursuant to the procedures in Chapter 20.22 POMC and this chapter, except that if the
development agreement is consolidated with a new or pending Type I, II, III or IV project permit
application as defined in RCW 36.70B.020, the City Council’s decision to approve, deny, or modify
the development agreement may be appealed pursuant to chapter 36.70C RCW.
(3) Effect. Development agreements are not project permit applications and are not subject to
the permit processing procedures in Chapter 36.70B RCW or Chapter 20.24 POMC. A
development agreement shall constitute a binding contract between the city and the property
owner and the subsequent owners of any later-acquired interests in the property identified in
the development agreement. A development agreement governs the project identified in the
development agreement during the term of the development agreement, or for all or that part
of the build-out period specified in the development agreement, and may not be subject to an
amendment to a zoning ordinance or development standard adopted after the effective date of
the agreement, except as set forth in this chapter. A permit or approval issued/granted by the
city after execution of a valid development agreement must be consistent with the development
agreement.
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(34)Limitations.
(a) A development agreement shall be limited to a 20-year term if any provision of the
agreement requires the city to:
(i) Refrain from exercising any authority that it would have otherwise been able to
exercise in the absence of the development agreement;
(ii) Defer application to the subject property of any newly adopted development
regulations that would otherwise apply to the property identified in the
agreement; or
(iii) Allow vesting beyond the applicable deadlines for a phased development.
(b) The development agreement shall also contain a proviso that the city may, without
incurring any liability, engage in action that would otherwise be a breach if the city makes
a determination on the record that the action is necessary to avoid a serious threat to
public health and safety, or if the action is required by federal or state law.
(c) The full costs of drafting and processing the development agreement shall be
reimbursed by the owner or applicant prior to final City Council action on the agreement
to the extent such costs exceed the initial application fee.
(45) Developer’s Compliance. The development agreement shall include a clause stating that the
city’s duties under the agreement are expressly conditioned upon the property owner’s
substantial compliance with each and every term, condition, provision and/or covenant in the
development agreement, all applicable federal, state, and local laws and regulations and the
property owner’s obligations as identified in any approval or project permit for the property
identified in the development agreement.
(56) No Third Party Rights. Except as otherwise provided in the development agreement, the
development agreement shall create no rights enforceable by any party who/which is not a party
to the development agreement.
(67) Liability. The development agreement shall include a clause providing that any breach of the
development agreement by the city shall give right only to damages under state contract law and
shall not give rise to any liability under Chapter 64.40 RCW, the Fifth and Fourteenth
Amendments to the U.S. Constitution, or similar state constitutional provisions.
(78) Termination, and Modification and Extension. Every development agreement shall have an
identified, specific termination date. Upon termination, any further development of the property
shall conform to the development regulations applicable to the property at the time of permit
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application. The city shall not modify any development agreement by extending the termination
date unless the City Council makes legislative findings that the additional benefits to the City
provided by the Developer in exchange for such extension of the development agreement
outweigh the impacts from the development authorized by the extension. In no case shall an
extension include the extension of provisions that are inconsistent with State or Federal law at
the time of such extension. Any request for a modification shall be consistent with the city’s
development regulations applicable to the property at the time of the request, not the original
execution date of the development agreement. Any extensions granted shall be for no more than
a length of ten (10) years. No more than two (2) extensions of up to ten (10) years shall be
granted. Extensions may not be granted unless an application for an extension is made no later
than one hundred and eighty (180) days prior to the termination date in the development
agreement or prior to the termination of any extension of a development agreement.
20.26.030 Application requirements.
Any owner of real property may, personally or through an agent, apply complete application for
a development agreement shall consist of by filing with the department of community
development the following:
(1) Name, address, telephone number and email address (if any) of the property owner.
If the applicant is not the property owner, the applicant must submit a verified statement
from the property owner that the applicant has the property owner’s permission to
submit the application;
(2) Address, parcel number and legal description of the property proposed to be subject
to the development agreement;
(3) Recent title report confirming that the property identified in the application is owned
by the applicant/property owner;
(4) Identification of any application (project permit application, comprehensive plan
amendment application, development regulation amendment application) that is related
to the proposed development agreement;
(5) SEPA checklist, if applicable;
(6) Two sets of stamped envelopes, and a list of the same, labeled with the name and
address of all current owners of real property, as shown in the records of the county
assessor for the subject property, within 300 feet of each boundary of the subject
property;
(7) A copy of the county assessor’s map identifying the properties specified in the
preceding subsection;
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(86) A completed application form and the application fee established by the city for this
purpose; and
(97) Any other information requested by the community development director relevant
to the processing of the development agreement.
20.26.040 Phasing.
(1) In order to phase a project to extend the vested rights associated with an underlying project
permit application, a development agreement is required. This ensures the availability of public
facilities and services to all of the property in the identified individual phases, allows tracking of
the available capacity of public facilities and utilities during each phase of construction, and with
the extension of the vested rights associated with the project, provides certainty to the developer
in the subsequent development approval process.
(2) The deadlines in the city’s code relating to each type of project permit application must be
consulted to establish the baseline vesting period. The city is not required to extend the vesting
period. If the city decides to do so through a development agreement, it must be in exchange for
the property owner’s provision of corresponding benefits to the city in the form of, for example,
contributions to public facilities and amenities over and above what would normally be required.
In any event, the city shall not allow vesting to extend beyond the established 20-year period
after approval of the project permit application unless the development agreement is extended
in accordance with POMC 20.25.020(8).
(3) A development agreement for a phased development (such as a subdivision) shall include (in
addition to all of the information in POMC 20.26.030), all of the following:
(a) Identification of the phasing schedule;
(b) Identification of the number of phases and all lots included in each phase;
(c) Identification of the approximate dates for construction of public streets, public
utilities and other improvements in each phase;
(d) Identification of the approximate dates for commencement of development of each
lot, lot sales and building occupancy;
(e) Identification of the benefits that the property owner will provide to the city in
exchange for permission to phase the development according to the proposed schedule;
(f) Establishment of the deadline for the property owner to submit development
applications, including building permit applications, for each phase;
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(g) A description of the manner in which each phase is designed such that all site
requirements are satisfied independently of phases yet to be given final approval and
constructed;
(h) A description of the manner in which the property owner will ensure that adequate
public facilities are available when the impact of development occurs. The property owner
shall acknowledge in the development agreement that if the demand for public facilities
or services needed to accommodate a subsequent development phase increases
following the issuance of a development permit for a prior phase in the approval process,
or if public facilities or services included in a concurrency or SEPA determination are not
constructed as scheduled in the city’s capital facilities plan, final development approval
may have to be delayed for future phases pending the achievement of the adopted levels
of service.
20.26.050 Processing procedures and appeals.
(1) Development agreements are not “project permit applications” as defined in RCW
36.70B.020(4). Therefore, there is no deadline for processing a development agreement.
(2) A development agreement must may be submitted for review in conjunction with a at least
one land use and development permit for the underlying project. The development agreement
application may be consolidated for processing with the underlying project permit application or
other application for approval. Any development plan accompanying the development
agreement shall be subject to the applicable project permit/approval application process set out
in Title 20 of this code. The application shall not be deemed complete until a draft development
agreement has been prepared and a development proposal conforming to the parameters of the
development agreement and meeting all pertinent requirements has been submitted. If the
development agreement is consolidated with a project permit application, the property owner
must agree to waive the deadline in RCW 36.70B.080 and POMC 20.24.100 for issuance of a final
decision on the underlying application, as well as the prohibition of no more than one open
record hearing and one closed record hearing on the underlying project permit application in
RCW 36.70B.060(3).
(32) Public Notice and Public Hearing.
(a) Notice of the public hearing shall be provided pursuant to POMC 20.22.070.
(b) If the owner of the real property which is the subject of the development agreement
owns another parcel or parcels of real property which lie adjacent to the real property
included in the development agreement, notice under this subsection shall be given to
owners of real property located within 300 feet of any portion of the boundaries of such
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adjacently located parcels of real property owned by the owner of the real property
included in the development agreement.
(c) The hearing on the development agreement shall be held pursuant to POMC
20.22.070, except that when the Development Agreement is processed as a legislative
matter (i.e. not consolidated with a project permit), the City Council shall conduct the
hearing itself and forgo a hearing and recommendation by the Planning Commission. Any
requests associated with the project-specific development proposal requiring a public
hearing by the hearing examiner shall be heard by the hearing examiner prior to City
Council action on the development agreement. While the director or hearing examiner
may provide a recommendation on a development agreement (even if the director or
hearing examiner makes the final decision on the underlying project permit application),
the city council shall make the final decision whether to approve a development
agreement by ordinance after the public hearing.
(d) Modifications to a development agreement shall be in writing, signed by the duly
authorized representatives of the parties, be consistent with this chapter and, where
considered substantive as determined by the director, follow the same procedures set
forth in this chapter.
(34) Appeal. A development agreement associated with an underlying project permit application
may be appealed in the same manner and within the same deadline as the underlying project
permit application. A development agreement associated with a legislative approval, such as a
comprehensive plan amendment, may be appealed in the same manner and within the same
deadline as the legislative approval. A modification of a development agreement pursuant to
20.26.020(8) that is consolidated with a new or pending Type I, II, III, or IV project permit
application may be appealed pursuant to Chapter 36.70C RCW.
(45) Recording Against the Property. The city shall record the development agreement against
the property with the real property records of the Kitsap County auditor. During the term of the
agreement, it is binding upon the owners of the property and any successors in interest to such
property.
20.26.060 Discretionary legislative action.
The decision of the city council to approve or reject a request for a development agreement shall
be a discretionary, legislative act and an exercise of the city's police power and contract authority.
20.26.070 Unauthorized fees prohibited.
Nothing in this Chapter is intended to authorize the City to impose impact fees, inspection fees,
or dedications or to require any other financial contributions or mitigation measures except as
expressly authorized by other applicable provisions of law.
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SECTION 3. Corrections. Upon the approval of the city attorney, the city clerk and/or
code publisher is authorized to make any necessary technical corrections to this ordinance,
including but not limited to the correction of scrivener’s/clerical errors, references, ordinance
numbering, section/subsection numbers, and any reference thereto.
SECTION 4. Severability. If any section, subsection, paragraph, sentence, clause, or
phrase of this ordinance is declared unconstitutional or invalid for any reason, such decision shall
not affect the validity of the remaining parts of this ordinance.
SECTION 5. Effective Date. This ordinance shall be published in the official newspaper of
the city and shall take full force and effect five (5) days after the date of publication. A summary
of this ordinance in the form of the ordinance title may be published in lieu of publishing the
ordinance in its entirety.
PASSED by the City Council of the City of Port Orchard, APPROVED by the Mayor and
attested by the City Clerk in authentication of such passage this 13th day of October 2020.
Robert Putaansuu, Mayor
ATTEST:
Brandy Rinearson, MMC, City Clerk
APPROVED AS TO FORM: SPONSOR:
Charlotte A. Archer, City Attorney Scott Diener, Councilmember
Page 115 of 189
City of Port Orchard
216 Prospect Street, Port Orchard, WA 98366
(360) 876-4407 • FAX (360) 895-9029
Agenda Staff Report
Agenda Item No.: Business Item 7C Meeting Date:
October 13, 2020
Subject: Adoption of a Resolution Approving a Prepared by: Charlotte Archer
Contract with the South Kitsap School City Attorney
District for COVID-19 Relief Atty Routing No.: Executive-Matter 3
Atty Review Date: September 18, 2020
Summary: The Washington State Department of Commerce has allocated funding from the
Coronavirus Aid, Relief, and Economic Security Act (CARES) to the City of Port Orchard in the amount of
$647,550. This funding (provided to the City on a reimbursement basis) may be used for necessary,
unbudgeted expenses spent in response to the COVID-19 public health emergency during the period of
March 1, 2020 thru November 30, 2020. According to the Washington Department of Commerce,
eligible expenses include the purchase of protective equipment, as well as “expenses to facilitate
distance learning, including technological improvements, in connection with school closings to enable
compliance with COVID-19 precautions.” The City has identified the SKSD as a potential partner to
utilize the CARES funding to reach individuals and families in need due to the COVID-19 pandemic and
economic emergency.
By this Resolution, the City Council would authorize funding to SKSD in the amount of $10,0000, for the
purchase of protective equipment, “WIFI hotspots” and related technology for online learning,
allowing school to occur remotely in compliance with state and local mandated precautions.
Recommendation: Staff recommends adoption of a Resolution awarding grant funding to SKSD and
authorizing the Mayor to execute an agreement with SKSD
Relationship to Comprehensive Plan: N/A
Motion for Consideration: I move to adopt a Resolution, declaring a public purpose, authorizing a
grant award to the South Kitsap School District for COVID-19 relief, and authorizing the Mayor to
execute an agreement with the District in a form acceptable to the City Attorney.
Fiscal Impact: 10,000 from CARES Act allocated funding.
Alternatives: Not provide grant funding to the SKSD, or modify the grant amount.
Attachments: Resolution and Agreement.
Page 116 of 189
RESOLUTION NO. ______
A RESOLUTION OF THE CITY OF PORT ORCHARD, WASHINGTON, DECLARING A
PUBLIC PURPOSE AND AUTHORIZING AN AGREEMENT WITH THE SOUTH
KITSAP SCHOOL DISTRICT FOR CITY-FUNDED COVID-19 RELIEF.
WHEREAS, on March 27, 2020, the United States Congress adopted the Coronavirus Aid,
Relief, and Economic Security Act (“CARES Act”) which, among other things, amended Section
601(a) of the Social Security Act and established the Coronavirus Relief Fund into which Congress
appropriated $150 billion to make payments for specified uses to States and certain local
governments; and
WHEREAS, the Coronavirus Relief Fund is available to reimburse government recipients
for necessary expenditures incurred due to the COVID-19 public health emergency that were
not accounted for in the government recipient’s most-recently appropriated budget and that
were incurred during the emergency; and
WHEREAS, guidance issued by the U.S. Treasury Department and Washington State
Department of Commerce indicates that necessary expenditures incurred due to the COVID-19
public health emergency include expenses necessary to provide essential public services by
educating the youth of the City by facilitating distance learning, including technological
improvements to implement online learning models, in connection with school closings to
enable compliance with COVID-19 precautions; and
WHEREAS, the City Council desires to provide grant funding to the South Kitsap School
District (“SKSD”) for procurement of personal protective equipment (PPE), “WIFI hotspots” and
related technology for online learning for residents of Port Orchard, which the City Council finds
bring a significant value to the residents of Port Orchard in response to the COVID-19 pandemic
by allowing school to occur remotely in compliance with state and local mandated precautions,
thereby serving these valid municipal purpose; and
WHEREAS, the City Council finds that funding SKSD serves the valid municipal purposes
identified here for the promotion of the health, safety and welfare of the City’s residents who
are struggling due to the COVID-19 pandemic and the economic impact thereof; 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 finds that the South Kitsap School District is a qualified
subrecipient for grant funding from the CARES Act funding, and this is a necessary and
unbudgeted expenditure to ensure the performance of essential public services of
educating the youth of the City by facilitating distance learning in response to the
Page 117 of 189
Resolution No. ___
Page 2 of 2
COVID-19 pandemic. The City Council authorizes the expenditure of $10,000 from the
general fund as payment to SKSD for these services. The City Council directs the Mayor
or designee to seek reimbursement of this amount from the CARES Act funding
allocated to the City.
THAT: The Mayor is authorized to execute an agreement with SKSD for the services
described herein, attached hereto as Exhibit A and incorporated herein by this
reference.
THAT: This Resolution shall be take full force and effect upon passage and signatures
hereon.
PASSED by the City Council of the City of Port Orchard, SIGNED by the Mayor and attested
by the City Clerk in authentication of such passage this 13th day of October 2020.
Robert Putaansuu, Mayor
ATTEST:
Brandy Rinearson, MMC, City Clerk
Page 118 of 189
1
AGREEMENT
BETWEEN THE CITY OF PORT ORCHARD
AND SOUTH KITSAP SCHOOL DISTRICT
FOR CARES PARTNERSHIP
THIS AGREEMENT is entered into on this _____ day of September, 2020, by and between
the City of Port Orchard, a Washington municipal corporation (“City”) and the South Kitsap
School District, a Washington special purpose agency (“SKSD”).
RECITALS
A. On March 27, 2020, the United States Congress adopted the Coronavirus Aid,
Relief, and Economic Security Act (“CARES Act”) which, among other things, amended Section
601(a) of the Social Security Act and established the Coronavirus Relief Fund into which Congress
appropriated $150 billion to make payments for specified uses to States and certain local
governments.
B. The Coronavirus Relief Fund is available to reimburse government SKSDs for
necessary expenditures incurred due to the COVID-19 public health emergency that were not
accounted for in the government SKSD’s most-recently appropriated budget and that were
incurred during the period between March 1, 2020 and December 30, 2020.
C. Guidance issued by the U.S. Treasury Department indicates that necessary
expenditures incurred due to the COVID-19 public health emergency include costs incurred to
provide financial assistance to individuals and families directly impacted by a loss of income due
to the COVID-10 public health emergency.
D. The State of Washington determined to distribute a certain portion of its share of
the CARES Act funds to Washington cities, including the City of Port Orchard, with such funds
being administered through the Washington State Department of Commerce.
E. The City has entered into an Interagency Agreement with the Washington State
Department of Commerce, which governs the City’s receipt of the CARES Act funds allocated to
the City, through the City’s request for reimbursement of eligible expenditures (the “Interagency
Agreement”), attached hereto as Exhibit A and incorporated herein. Under the Interagency
Agreement, the City’s reimbursable expenditures must be incurred during the period between
March 1, 2020 and October 31, 2020 in order for the State of Washington to close out its contracts
in time to meet the United States Treasury’s December 30, 2020 end date.
F. SKSD provides essential public services by educating the youth of the City, and
has faced a significant impact from the COVID-19 pandemic and associated safety measures taken
by State and local governments, including costs related to implementing online learning models;
and
H. The City recognizes that public resources are necessary to help school districts
impacted by the COVID-19 pandemic, and expenses to facilitate distance learning, including
Page 119 of 189
2
technological improvements, in connection with school closings to enable compliance with
COVID-19 precautions are eligible expenses under the Interagency Agreement; and
I. The City desires to award SKSD a portion of its CARES Act funds to address
unanticipated expenses incurred as a direct result of the COVID-19 pandemic for specified
allowable expenses, as set forth herein.
NOW, THEREFORE, the Parties mutually agree as follows:
AGREEMENT
1. Incorporation of Recitals/Exhibits. The recitals and referenced Exhibits are
incorporated herein by this reference.
2. City’s Performance Obligations. The City shall provide to SKSD up to $10,000
in CARES Act funds, contingent on the terms and conditions herein (“Grant Funds”).
3. SKSD’s Performance Obligations. SKSD shall use the Grant Funds for the
purchase of necessary PPE equipment and technological equipment to facilitate distance learning
in connection with school closings by State and local agencies for the COVID-19 pandemic.
Funding shall be utilized for this purpose by November 30, 2020, and any unused funds by that
date shall be returned to the City. SKSD acknowledges that the Grant Funds may only be used to
cover costs that are necessary expenditures incurred due to the COVID-19 public health
emergency. All other expenditures of the funds are not permitted and are deemed “Ineligible
Expenses.”
a. No Use of Program Award Funds for Expenses Covered by Other Programs. The
Agency shall not use Grant Funds to cover other expenses for which the Agency has received other
federal, state or regional funds.
b. SKSD understands that the funding for the grant under this Agreement comes solely
as reimbursement of payments made by the City, from the State of Washington. The City has no
independent obligation to provide SKSD with funds from any other source.
c. If SKSD expends or otherwise uses Grant Funds on Ineligible Expenses, or is
unable to utilize the Grant Funds within the timeframe set out in this Agreement, any remainder
and the amount expended or used on the Ineligible Expenses shall be subject to recapture at the
discretion of the City. SKSD agrees to repay to the City, within ten (10) days or such other the
time period specified by the City, all remaining Grant Funds and/or all Grant Funds determined by
the City to have been spent or otherwise used on an Ineligible Expense. In the alternative, the City
may recapture such funds from payments due under this Agreement.
4. Time Period. SKSD shall utilize the Grant Funds for expenses incurred for the
time period of March 1, 2020 to November 30, 2020.
Page 120 of 189
3
5. SKSD’s Documentation of Expenditures SKSD shall provide the City of with a
submittal in a form as the City requires (“Documentation”), including vendor invoices reflecting
expenditures that identify the ways in which the Grant Funds were utilized in conformity with
this Agreement.
6. Compliance with Federal, State and Local Laws; City’s Right to Recapture.
SKSD shall comply with and obey all applicable federal, state, and local laws, regulations, and
ordinances. Should SKSD’s spending of the Grant Funds be inconsistent with applicable laws,
provisions of this Agreement, or otherwise inappropriate, the City shall have the right to the return
of any portion of the Funds.
a. The Parties agree that SKSD is a subrecipient for purposes of the Commerce
Agreement. SKSD shall be subject to all requirements of the Commerce Agreement applicable to
subrecipients and funding under this Agreement, and SKSD agrees to comply with all such terms,
which are incorporated by reference herein. Pursuant to the Commerce Agreement, SKSD shall
comply with 2 C.F.R. part 200, Subpart F, governing audit requirements for recipients of federal
funding.
b. Funds under this Agreement are made available and are subject to Section 601(a)
of the Social Security Act, as amended by section 5001 of the CARES Act, and Title V and VI of
the CARES Act. SKSD agrees that any publications, excluding press release, newsletters, and
issue analyses, issued by SKSD describing the program or projects funded in whole or in part with
federal funds under this Agreement shall contain the following statements: “This project was
supported by a grant award by the Department of Treasury. Points of view in this document are
those of the author and do not necessarily represent the official position or policies of the U.S.
Department of Treasury. Grant funds are administered by the Local Government Coronavirus
Relief Fund through the Washington Department of Commerce.”
c. Certification Regarding Debarment, Suspension, Ineligibility and Voluntary
Exclusion – Lower Tier Covered Transaction. SKSD certifies, by signing this Agreement that
neither it nor its principals is presently debarred, suspended, proposed for debarment, declared
ineligible, or voluntarily excluded from participation in this transaction by any Federal or State
department or agency.
7. Maintenance of Records. SKSD shall maintain accurate written records, including
accounting records and proof of payment, books, documents, data and other evidence that reflects
all of SKSD’s expenditures of Grant Funds. These records must be sufficient to demonstrate that
the funds have been used in accordance with Section 601(d) of the Social Security Act. The City
may at any time review the documentation to determine SKSD’s conformance with the
requirements of the Program, and SKSD shall make available to the City, upon request, all of
SKSD’s records and documents with respect to all matters covered by this Agreement.
a. SKSD shall retain all records related to this Agreement for a period of six (6) years
following the receipt of Grant Funds. These records, including materials generated under the
contract, shall be subject at all reasonable times to inspection and review by the City, and to an
audit by the Washington State Department of Commerce, personnel duly authorized by
Page 121 of 189
4
Commerce, the Office of the State Auditor, and federal and state officials so authorized by law,
regulation or agreement.
b. If any litigation, claim or audit is started before the expiration of the six (6) year
period provided in Section 4(b) above, the records shall be retained until all litigation, claims, or
audit findings involving the records have been resolved.
8. Termination. If SKSD fails to fulfil its obligations under this Agreement, the City
may terminate this Agreement upon written notice to SKSD specifying the reason for termination
and the date of termination, and may seek to recover any unused Grant Funds paid to SKSD.
9. No Employee Relationship. SKSD understands and acknowledges that neither
SKSD nor any officer, employee or agent of SKSD shall be considered to be an employee of the
City, nor entitled to any benefits accorded City employees, by virtue of the services provided under
this Agreement. The City shall not be responsible for assuming the duties of an employer with
respect to SKSD or any employee of SKSD.
10. Indemnification. SKSD shall indemnify and hold the City harmless against any
claim or liability of any nature in connection with or arising in any manner out of this Agreement
or SKSD’s receipt or use of Grant Funds.
11. Non-discrimination. SKSD shall conduct its business and use funds in a manner
which assures fair, equal and non-discriminatory treatment of all persons, including maintaining
open hiring and employment practices, and compliance with all requirements of applicable federal,
state or local laws or regulations related to hiring and employment practices and providing services
to all persons, without discrimination as to any person’s race, color, religion, sex, sexual
orientation, disabled veteran condition, physical or mental handicap or national origin.
12. Conflict of Interest. No officer or employee of the City, having the power or duty
to perform an official act or action related to this Agreement shall have or acquire any interest in
this Agreement, or have solicited, accepted, or granted a present or future gift, favor, service, or
other thing of value from any person with an interest in this Agreement.
13. Complete Agreement. This Agreement sets forth the complete expression of the
agreement between the Parties, and any oral representations or understandings not incorporated
herein are excluded.
14. Waiver. Any waiver by SKSD or the City of the breach of any provision of this
Agreement by the other party will not operate, or be construed, as a waiver of any subsequent
breach by either party or prevent either party from thereafter enforcing any such provisions.
15. Modification. This Agreement may only be amended by written agreement signed
by both Parties.
Page 122 of 189
5
16. Severability. If any part of this Agreement is found to be in conflict with applicable
laws, such part shall be inoperative, null and void, insofar as it is in conflict with said laws, and
the remainder of the Agreement shall remain in full force and effect.
17. Notices. All notices or other communications required or permitted under this
Agreement shall be in writing and shall be (a) personally delivered, in which case the notice or
communication shall be deemed given on the date of receipt at the office of the addressee; (b) sent
by registered or certified mail, postage prepaid, return receipt requested, in which case the notice
or communication shall be deemed given three (3) business days after the date of deposit in the
United States mail; or (c) sent by overnight delivery using a nationally recognized overnight
courier service, in which case the notice or communication shall be deemed given one business
day after the date of deposit with such courier. Notices shall be sent to the following addresses:
a. Notices to the City of Port Orchard shall be sent to the following address:
City of Port Orchard Attn: Rob Putaansuu, Mayor 216 Prospect Street Port Orchard, WA 98366 b. Notices to the SKSD shall be sent to the following address:
South Kitsap School District
Attn: __________________
2689 Hoover Ave SE
Port Orchard, WA 98366
18. Assignment of Contract. The SKSD shall not assign this Agreement or its
obligations hereunder without the prior written consent of the City.
19. Venue. This Agreement shall be governed by the law of the State of Washington
and venue for any lawsuit arising out of this Agreement shall be in Kitsap County.
20. Interagency Agreement Amendments. The Parties acknowledge that
Washington State may require or request changes to the Interagency Agreement or its requirements
or provisions. Any changes or alterations to the Interagency Agreement terms and conditions that
are applicable or relevant to this Agreement shall be incorporated into this Agreement by
amendment of this Agreement, upon notice by the City to the SKSD.
21. Public Disclosure. All SKSD documents and records comprising the Agreement,
and all other documents and records provided to the City by the SKSD, are deemed public records
under the Washington Public Records Act, Ch. 42.56 RCW, and may be subject to disclosure by
the City. The City may be required, upon request, to disclose the Agreement, and the documents
and records submitted to the City by SKSD, unless an exemption under the Public Records Act
applies.
Page 123 of 189
6
22. Disclaimer of Liability. Washington State Department of Commerce and the State of Washington are not liable for claims or damages arising from the SKSD’s performance of this Agreement.
IN WITNESS WHEREOF, the City and the SKSD have executed this Agreement as of
the date first above written.
CITY OF PORT ORCHARD,
WASHINGTON
By:_______________________
Rob Putaansuu, Mayor
Date:______________________
SOUTH KITSAP SCHOOL DISTRICT By:___________________________
Typed/Printed Name:__________________
Its:__________________________________
Date:_______________________________
APPROVED AS TO FORM:
By:_______________________
Charlotte A. Archer, City Attorney
Date: ________________________
Page 124 of 189
City of Port Orchard
216 Prospect Street, Port Orchard, WA 98366
(360) 876-4407 • FAX (360) 895-9029
Agenda Staff Report
Agenda Item No.: Business Item 7D Meeting Date: October 13, 2020
Subject: Adoption of a Resolution Approving an Prepared by: Noah Crocker
Amendment to Contract No. 060-20 with the Finance Director
Department of Commerce Related to the Atty Routing No.: Matter 7-Finance
COVID-19 CARES Act Funds Atty Review Date: October 7, 2020
Summary: The economic shock from the coronavirus pandemic has been sudden and unprecedented. Within
the span of just a couple weeks, many businesses and public gathering spaces were shut down statewide,
consumer spending on non-emergency items plummeted, and initial unemployment filings shattered old
records. The full effect of these impacts will not be known for some time, but it is clear they will be
significant.
The Coronavirus Aid, Relief, and Economic Security (CARES) Act was enacted March 27, 2020, to provide
immediate relief in response to the COVID-19 pandemic and its unprecedented economic impacts. This is a
massive and wide-ranging stimulus bill that includes significant aid for state and local governments.
These distributions will be on a reimbursement basis using the Treasury Guidance for State, Territorial, Local
and Tribal Governments (issued April 22, 2020; also see the Treasury Department's Coronavirus Relief Fund
FAQs, updated most recently on May 28), and the Coronavirus Relief Funds for Local Governments Program
Guidelines from the Washington State Department of Commerce (issued May 18, 2020).
By Resolution No. 027-20, the City Council authorized the Mayor to execute an Interagency Agreement with
the Department of Commerce for up to $431,700 of CARES Act funding, administered through the
Department of Commerce, for expenses incurred in order combat COVID-19. In order to receive these funds
the City was required to execute the Interagency Agreement, in a form required by the Department of
Commerce.
On August 31, 2020, Governor Inslee announced an additional allocation of funds for Washington’s local
governments. The City of Port Orchard is eligible for an additional $215,850 of CARES Act funding and
additional time to request reimbursement. Costs incurred due to the public health emergency with respect
to COVID-19 during the period of March 1, 2020 thru November 30, 2020 are eligible for reimbursement from
CARES Act funding.
As a result of both allocations, the City of Port Orchard is eligible for up to a total of $647,550 of CARES Act
funding, administered through the Department of Commerce. In order to pursue the additional funds, the
City must execute an amendment to the Interagency Agreement with the Department of Commerce, again in
a form required by the Department of Commerce.
Page 125 of 189
Staff Report 7D
Page 2 of 2
Recommendation: Staff recommends the City Council approve the Resolution authorizing the Mayor to
execute the amendment to the Interagency Agreement with Department of Commerce related to the
COVID-19 CARES Act Funding.
Relationship to Comprehensive Plan: N/A
Motion for consideration: I move to adopt a Resolution authorizing the Mayor to enter into the
amendment to the Interagency Agreement with Department of Commerce, related to the COVID-19
CARES Act Funds for Local Governments in Washington State.
Fiscal Impact: $647,550 in potential CARES Act funding for the City
Alternatives: Do not approve and provide alternative direction. Do not approve resolution and provide
alternative guidance
Attachments: Resolution, Ex. A – Amendment to the Interagency Agreement, and Interagency
Agreement with CRF Program Guidelines.
Page 126 of 189
RESOLUTION NO. _____
A RESOLUTION OF THE CITY OF PORT ORCHARD, WASHINGTON,
AUTHORIZING THE MAYOR TO ENTER INTO AN AMENDMENT TO
THE INTERAGENCY AGREEMENT WITH DEPARTMENT OF
COMMERCE RELATED TO THE CARES ACT FUNDING DUE TO
COVID-19.
WHEREAS, the economic and public health impact from the coronavirus pandemic has
been sudden and unprecedented; and
WHEREAS, the City of Port Orchard has spent significant unbudgeted financial resources
to combat and respond to COVID-19 for its employees, citizens and businesses; and
WHEREAS, the City of Port Orchard was awarded $431,700 of CARES Act funding for local
governments, administered through the Washington Department of Commerce, for costs incurred
due to the public health emergence with respect to the COVID-19 during the period of March 1,
2020 thru October 31, 2020; and
WHEREAS, on June 23, 2020, consistent with requirements from Commerce to access the
allocated funds, the City Council adopted Resolution No. 027-20, authorizing the Mayor to execute
an Interagency Agreement with Commerce; and
WHEREAS, the City of Port Orchard eligibility for funds has since increased by $215,850 to
a total amount up to $647,550 of CARES Act funding for local governments, administered through
the Washington Department of Commerce, for costs incurred due to the public health emergence
with respect to the COVID-19 during the period of March 1, 2020 thru November 30, 2020; and
WHEREAS, the City of Port Orchard will continue to incur unbudgeted expenses due to
COVID-19, and desires to seeking the additional funding provided by the CARES Act and the
additional time to request for reimbursement; and
WHEREAS, the Department of Commerce requires the City to execute an amendment to
the Interagency Agreement with the Department prior to receiving the additional funds and the
additional time extension, and the contract as amended covers the City’s rights and obligations
under the program; now, therefore,
THE CITY COUNCIL OF THE CITY OF PORT ORCHARD, WASHINGTON, HEREBY RESOLVES
AS FOLLOWS:
THAT: The City Council authorizes the Mayor to execute an amendment to the
Interagency Agreement with Department of Commerce related to the COVID-19 CARES
Act Funds for Local Governments in Washington State program, attached hereto as
Exhibit A and incorporated herein by this reference.
Page 127 of 189
Resolution No. _______
Page 2 of 2
THAT: This Resolution shall be take full force and effect upon passage and signatures
hereon.
PASSED by the City Council of the City of Port Orchard, SIGNED by the Mayor and attested
by the City Clerk in authentication of such passage this 13th day of October 2020.
Robert Putaansuu, Mayor
ATTEST:
Brandy Rinearson, MMC, City Clerk
Page 128 of 189
Amendment
Department of Commerce
Contract Number: 20-6541C-288
Amendment Number: A
Washington State Department of Commerce
Local Government Division
Community Capital Facilities Unit
Coronavirus Relief Fund for Local Governments
1. Contractor 2. Contractor Doing Business As (optional)
City of Port Orchard
216 Prospect St
PORT ORCHARD, Washington 98366-5326
3. Contractor Representative (only if updated) 4. COMMERCE Representative (only if updated)
Heidi Draper
Accounting Assistant III
(360) 876-4407
hdraper@cityofportorchard.us
Janet Eaton
Project Manager
(360) 725-3166
Fax 360-586-5880
janet.eaton@commerce.wa.gov
PO Box 42525
1011 Plum St SE
Olympia, WA 98504-2525
5. Original Contract Amount
(and any previous amendments)
6. Amendment Amount 7. New Contract Amount
$431,700.00 $215,850.00 $647,550.00
8. Amendment Funding Source 9. Amendment Start Date 10. Amendment End Date
Federal: X State: Other: N/A: Date of Execution November 30, 2020
11. Federal Funds (as applicable):
$647,550.00
Federal Agency:
US Dept. of the Treasury
CFDA Number:
21.019
12. Amendment Purpose:
To provide additional funding for costs incurred due to the public health emergency with respect to the Coronavirus Disease 2019
(COVID-19) during the period of March 1, 2020 thru November 30, 2020. Final invoices must be received by December 15, 2020.
COMMERCE, defined as the Department of Commerce, and the Contractor, as defined above, acknowledge and accept the terms
of this Contract As Amended and attachments and have executed this Contract Amendment on the date below to start as of the date
and year referenced above. The rights and obligations of both parties to this Contract As Amended are governed by this Contract
Amendment and the following other documents incorporated by reference: Contractor Terms and Conditions including Attachment
“A” – Scope of Work, Attachment “B” – Budget & Invoicing, Attachment “C” – A-19 Certification, Attachment “D” – A-19
Activity Report. A copy of this Contract Amendment shall be attached to and made a part of the original Contract between
COMMERCE and the Contractor. Any reference in the original Contract to the “Contract” shall mean the “Contract as Amended”.
FOR CONTRACTOR FOR COMMERCE
Rob Putaansuu, Mayor
Date
Mark K. Barkley, Assistant Director, Local Government Div
Date
APPROVED AS TO FORM ONLY
Sandra Adix
Assistant Attorney General
3/20/2014
Date
Page 129 of 189
Amendment
2
This Contract is amended as follows:
Contract amount has been increased by $215,850.00.
Contract end date has been extended from October 31, 2020 to November 30,
2020.
Final reimbursement request must be received by December 15, 2020.
ALL OTHER TERMS AND CONDITIONS OF THIS CONTRACT REMAIN IN FULL FORCE
AND EFFECT.
Page 130 of 189
)a%,
Washington State
Deoartment of
Commerce
Interagency Agreement with
City of Port Orchard
through
For
the Coronavirus Relief Fund for Local Governments
costs incurred due to the public health emergency with respect to
the Coronavirus Disease 20t9 (COVID-19) during the period of
March t, 2020 thru October 31, 2020.
Staft date: March L, 2020
Page 131 of 189
TABLE OF CONTENTS
Special Terms and Conditions
1. Authority.
2. Acknowledgement of Federal Funding
3. Contract Management ........................
4. Compensation..................
5. Expenses..
6. lndirect Costs..
7. Billing Procedures and Payment.........
8. Audit...
9. Debarment..'10. 1aws...........
11 . Order of Precedence.
General Terms and Conditions
1.
2.
J.
4.
5.
6.
7.
8.
q
10.
11.
12.
IJ.
14.
15.
16.
17.
18.
'19.
20.
Definitions
All Writings Contained Herein.........
Amendments..................
Assignment
Confidentiality and Safeg uarding of I nformation....
Copyright.....
Disputes
Governing Law and Venue
lndemnification...............
Licensing, Accreditation and Registration .... ".... "...
Recapture
Records Maintenance
Savings
Severability
Subcontracting ................
Survival
Termination for Cause
Termination for Convenience..............
Termination Procedures
Waiver........
5
5
5
5
5
6
6
6
7
7
7
7
7
7
7
I
8
o
B
I
Attachment A, Scope of Work .......
Attachment B, Budget & lnvoicing.
Attachment C, A-1 9 Certification . ...
Attachment D, A-19 Activity Report
10
12
'13
15
il
Page 132 of 189
FACE SHEET
Washington State Departmcnt of Commerce
Local Government Division
Community Capital Facilities Unit
Coronavirus Relief Fund for Local Governments
Contract Number; 20-65 4l C-288
l. Contractor
City of Port Orchard
2l 6 Prospect St
Port Orchard, Washington 98366-5326
2. Contrcctor Doing Business As (optional)
3. Contractor Representative
Heidi Draper
Accounting Assistant III
(360) 876-4407
hdraper@cityofportorchard.us
4. COMMERCE Representative
Karma Shannon Lawson
Project Manager
(360) 8r0-0185
Fax 360-586-5880
karma.shannon lawson@commerce.wa.gov
P.O. Box 42525
l0l l Plum Street SE
Olympia, WA 98504-
2525
5. Contract Amount
$431,700.00
6. Funding Source
Federal: X State: Other: N/A
7. Start Date
March 1,2020
8. End Date
October 31,2020
CFDA Number:
2 r.019
lndirect Rate (if appticable)
10.00%
Federal Agency:
US Dept. of the Treasury
9. Fcderal Funds (as applicable)
$43 r,700.00
10. Tax ID #
xxxxxxxxxxxxxx
11. swv #
swv002s665-00
I2, UBI #
I 82000005
13. DUNS #
N/A
14. Contract Purpose
To provide funds for costs incurred due to the public health emergency with respect to the Coronavirus Disease 2019 (COVID-19)during the period of March 1,2020 thru October 31,2020. Final invoiies must be received by November 15,2020.
15. Signing Statement
COMMERCE, defined as the Department of Commerce, and the Contractor, as defined above, acknowledge and accept the terms ofthis Contract and Attachments and have executed this Contract on the date below and wariant they are authorized to bind theirrespective agencies. The rights and obligations of both parties to this Contract are governed by this Contract and the followingdocuments hereby irrcorporated by reference: Aftachment "A" - Scope of Work, Attachment ..8,, - Budget & Invoicing, Attachmeni"C" - A-19 Certification, Attachnrerrt ,.D,'- A-19 Activity Report
FORCONTRACTOR
Rob Putaansuu,
u ro lLr
Date
FORCOMMERCE
Director, Local Government Division
Date
APPROVED AS TO FORM ONLY BY ASSISTANT
ATTORN EY GENERAI, O5-01-2020.
APPROVAL ON FILE.
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SPECIAL TERMS AND CONDITIONS
INTERAGENCY AGREEMENT
FEDERAL FUNDS
1, AUTHORITY
COMMERCE and Contractor enter into this Contract pursuant to the authority granted by the lnterlocal
Cooperation Act, Chapter 39.34 RCW.
2. ACKNOWLEDGMENT OF FEDERAL FUNDS
3.
Funds under the Contract are made available and are subject to Section 601(a) of the Social Security
Act, as amended by section 5001 of the Coronavirus Aid, Relief, and Economic Security Act (CARES
Act), and Title V and Vl of the CARES Act.
The Contractor agrees that any publications (written, visual, or sound) but excluding press releases,
newsletters, and issue analyses, issued by the Contractor describing programs or projects funded in whole
or in part with federal funds under this Contract, shall contain the following statements:
"This project was supported by a grant awarded by US Department of the Treasury. Points of
view in this document are those of the author and do not necessarily represent the official position
or policies of the US Department of the Treasury. Grant funds are administered by the Local
Government Coronavirus Relief Fund thru the Washington State Department of Commerce."
CONTRACT MANAGEMENT
The Representative for each of the parties shall be responsible for and shall be the contact person for all
communications and billings regarding the performance of this Contract.
The Representative for COMMERCE and their contact information are identified on the Face Sheet of
this Contract.
The Representative for the Contractor and their contact information are identified on the Face Sheet of
this Contract.
COMPENSATION
COMMERCE shall pay an amount not to exceed the contract amount listed on the Face Sheet for the
performance of all things necessary for or incidental to the performance of work under this Contract as set
forth in the Scope of Work (Attachment A).
EXPENSES
Contractor shall receive reimbursement for allowable expenses as identified in the Scope of Work
(Attachment A) or as authorized in advance by COMMERCE as reimbursable.
Travel expenses may include airfare (economy or coach class only), other transportation expenses, and
lodging and subsistence necessary during periods of required travel. Contractor shall receive compensation
for travel expenses at current state travel reimbursement rates.
INDIRECT COSTS6
Contractor shall provide their indirect cost rate that has been negotiated between their entity and the federal
government. lf no such rate exists a de minimis indirect cost rate of 10% of modified total direct costs
(MTDC)will be used.
7 BILLING PROCEDURES AND P ENT
COMMERCE shall reimburse the Contractor for eligible Project expenditures, up to the maximum payable
under this Contract. When requesting reimbursement for expenditures made, Contractor shall submit all
lnvoice Vouchers and any required documentation electronically through COMMERCE's Contracts
Management System (CMS), which is available through the Secure Access Washington (SAW) portal. lf
the Contractor has constraints preventing access to COMMERCE's online A-19 portal, a hard copy A-'1 9
form may be provided by the COMMERCE Project Manager upon request.
4.
5
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The voucher must be certified by an official of the Contractor with authority to bind the Contractor. The final
voucher shall be submitted to COMMERCE no later than November 15,2020.
COMMERCE will pay Contractor upon acceptance of services provided and receipt of properly completed
invoices, which shall be submitted to the Representative for COMMERCE not more often than monthly.
The invoices shall describe and document, to COMMERCE's satisfaction, reimbursable expenditures as
set forth under the Scope of Work (Attachment A) and Budget & lnvoicing (Attachment B). The invoice shall
include the Contract Number as stated on the Face Sheet.
Each voucher must be accompanied by an A-19 Certification (Attachment C) and A-19 Activity Report
(Attachment D). The A-19 Certification must be certified by an authorized party of the Contractor to certify
and attest all expenditures submitted on the voucher are in compliance with the United States Treasury
Coronavirus Relief Fund ("Fund") Guidance for State, Territorial, Local, and Tribal Governments:
httos://home.treasu rv.oov/svstem/files/136/Coronavirus-Relief-Fund-Guidance-for-State-Territorial-Local-
and-Tribal-Governments. pdf
The A-19 Activity Report must be submitted which describes, in Excel spreadsheet and narrative form, a
detailed breakdown of the expenditures within each applicable budget sub-category identified in the
voucher, as well as a report of expenditures to date. COMMERCE will not release payment for any
reimbursement request received unless and until the A-19 Certification and A-19 Activity Report is received.
After approving the lnvoice Voucher, A-'19 Certification and Activity Report, COMMERCE shall promptly
remit a warrant to the Contractor.
Payment shall be considered timely if made by COMMERCE within thirty (30) calendar days after receipt
of properly completed invoices. Payment shall be sent to the address designated by the Contractor.
COMMERCE may, in its sole discretion, terminate the Contract or withhold payments claimed by the
Contractor for services rendered if the Contractor fails to satisfactorily comply with any term or condition of
this Contract.
No payments in advance or in anticipation of services or supplies to be provided under this Agreement shall
be made by COMMERCE.
Duplication of Billed Costs
The Contractor shall not bill COMMERCE for services performed under this Agreement, and COMMERCE
shall not pay the Contractor, if the Contractor is entitled to payment or has been or will be paid by any other
source, including grants, for that service.
d Costs
The Contractor is responsible for any audit exceptions or disallowed costs incurred by its own organization
or that of its subcontractors.
Should the Contractor be found to spent funds inconsistent with federal laws, rules, guidelines, or otheruvise
inappropriately, it is the responsibility of the Contractor to reimburse Commerce for any amount spent on
disallowed costs.
8. AUDIT
Contractor shall maintain internal controls providing reasonable assurance it is managing federal awards
in compliance with laws, regulations, and provisions of contracts or grant agreements that could have a
material effect on each of its federal programs; and prepare appropriate financial statements, including a
schedule of expenditures of federal awards.
lf the Contractor is a subrecipient and expends $750,000 or more in federal awards from any and/or all
sources in any fiscal year, the Contractor shall procure and pay for a single audit or a program-specific
audit for that fiscal year. Upon completion of each audit, the Contractor shall:
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A. Submit to COMMERCE the reporting package specified in OMB Super Circular 2 CFR 200.501,
reports required by the program-specific audit guide (if applicable), and a copy of any management
letters issued by the auditor.B. Submit to COMMERCE follow-up and developed corrective action plans for all audit findings.
lf the Contractor is a subrecipient and expends less than $750,000 in federal awards from any and/or all
sources In any fiscal year, the Contractor shall notify COMMERCE they did not meet the single audit
requirement.
The Contractor shall send all single audit documentation to auditreview@commerce.wa.qov.
9. DEBARMENT
A. Contractor, defined as the primary participant and it principals, certifies by signing these General Terms
and Conditions that to the best of its knowledge and belief that they:
i. Are not presently debarred, suspended, proposed for debarment, declared ineligible, or
voluntarily excluded from covered transactions by any Federal department or agency.
ii. Have not within a three-year period preceding this Contract, been convicted of or had a civil
judgment rendered against them for commission of fraud or a criminal offense in connection
with obtaining, attempting to obtain, or pedorming a public or private agreement or transaction,
violation of Federal or State antitrust statutes or commission of embezzlement, theft, forgery,
bribery, falsification or destruction of records, making false statements, tax evasion, receiving
stolen property, making false claims, or obstruction of justice;
iii. Are not presently indicted for or otherwise criminally or civilly charged by a governmental entity
(Federal, State, or local) with commission of any of the offenses enumerated in paragraph
(1)(b)of federalExecutive Order 12549; and
iv. Have not within a three-year period preceding the signing of this Contract had one or more
public transactions (Federal, State, or local) terminated for cause of default.
B. Where the Contractor is unable to certify to any of the statements in this Contract, the Contractor shall
attach an explanation to this Contract.
C. The Contractor agrees by signing this Contract that it shall not knowingly enter into any lower tier
covered transaction with a person who is debarred, suspended, declared ineligible, or voluntarily
excluded from participation in this covered transaction, unless authorized by COMITIERCE.
D. The Contractor further agrees by signing this Contract that it will include the clause titled "Certification
Regarding Debarment, Suspension, lneligibility and Voluntary Exclusion-Lower Tier Covered
Transaction," as follows, without modification, in all lower tier covered transactions and in all
solicitations for lower tier covered transactions:
LOWER TIER COVERED TRANSACTIONS
The lower tier Contractor certifies, by signing this Contract that neither it nor its principals is
presently debarred, suspended, proposed for debarment, declared ineligible, or voluntarily
excluded from participation in this transaction by any Federal department or agency.
Where the lower tier Contractor is unable to certify to any of the statements in this Contract,
such contractor shall attach an explanation to this Contract.
E. The terms covered transaction, debarred, suspended, ineligible, lower tier covered transaction,
person, primary covered transaction, principal, and voluntarily excluded, as used in this section,
have the meanings set out in the Definitions and Coverage sections of the rules implementing Executive
Order 12549. You may contact COMMERCE for assistance in obtaining a copy of these regulations.
10. LAWS
The Contractor shall comply with all applicable laws, ordinances, codes, regulations, and policies of local,
state, and federal governments, as now or hereafter amended, including, but not limited to:
t.
ii
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United States Laws. Requlations and Circulars (Federal)
Contractor shall comply with Uniform Administrative Requirements, Cost Principles, and Audit Requirement
for Federal Award, 2 CFR 200, Subpart F - Audit Requirements.
Contractor shall comply with the applicable requirements of 2 CFR Part 200, including any future
amendments to 2 CFR Part 200, and any successor or replacement Office of Management and Budget
(OMB) Circular or regulation.
Contractor shall comply with Omnibus Crime Control and Safe streets Act of '1968, Title Vl of the Civil Rights
Act of 1964, Section 504 of the Rehabilitation Act of 1973, Title ll of the Americans with Disabilities Act of
'1990, Title lX of the Education Amendments of 1972, The Age Discrimination Act of '1975, and The
Department of Justice Non-Discrimination Regulations, 28 C.F.R. Par142, Subparts C.D.E. and G, and 28
C.F.R. Part 35 and 39.
11. ORDEROF PREGEDENCE
ln the event of an inconsistency in this Contract, the inconsistency shall be resolved by giving precedence
in the following order:
. Applicable federal and state of Washington statutes and regulations
. SpecialTerms and Conditions
. General Terms and Conditions
. Attachment A - Scope of Work
. Attachment B- Budget & lnvoicing
. Attachment C - A-19 Certification
. Attachment D - A-19 Activity Report
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1, DEFINITIONS
As used throughout this Contract, the following terms shall have the meaning set forlh below:
A. "Authorized Representative" shall mean the Director and/or the designee authorized in writing to
act on the Director's behalf.
B. "COMMERCE" shall mean the Department of Commerce.
C. "Contract" or "Agreement" means the entire written agreement between COMMERCE and the
Contractor, including any attachments, documents, or materials incorporated by reference. E-mail
or facsimile transmission of a signed copy of this contract shall be the same as delivery of an
original.
D. "Contractor" shall mean the entity identified on the face sheet performing service(s) under this
Contract, and shall include all employees and agents of the Contractor.
E. "Personal lnformation" shall mean information identifiable to any person, including, but not limited
to, information that relates to a person's name, health, finances, education, business, use or receipt
of governmental services or other activities, addresses, telephone numbers, social security
numbers, driver license numbers, other identifying numbers, and any financial identifiers.
F. "State" shall mean the state of Washington.
G. "Subcontracto/' shall mean one not in the employment of the Contractor, who is performing all or
part of those services under this Contract under a separate contract with the Contractor. The terms
"subcontractor" and "subcontractors" mean subcontractor(s) in any tier.
ALL WRITINGS CONTAINED HEREIN
This Contract contains all the terms and conditions agreed upon by the parties. No other
understandings, oral or otherwise, regarding the subject matter of this Contract shall be deemed to
exist or to bind any of the parties hereto.
3 AMEND MENTS
This Contract may be amended by mutual agreement of the parties. Such amendments shall not be
binding unless they are in writing and signed by personnelauthorized to bind each of the parties.
4. ASSIGNMENT
Neither this Contract, work thereunder, nor any claim arising under this Contract, shall be transferred
or assigned by the Contractor without prior written consent of COMMERCE.
TIAt5. CONFIDEN -ITY AND SAFEGUARDING O F INFORMATION
A. "Confidential lnformation" as used in this section includes:
i. All material provided to the Contractor by COMMERCE that is designated as "confidential" by
COMMERCE;
ii. All material produced by the Contractor that is designated as "confidential" by COMIVERCE;
and
iii. All personal information in the possession of the Contractor that may not be disclosed under
state or federal law.
B. The Contractor shall comply with all state and federal laws related to the use, sharing, transfer,
sale, or disclosure of Confidential lnformation. The Contractor shall use Confidential lnformation
solely for the purposes of this Contract and shall not use, share, transfer, sell or disclose any
Confidential lnformation to any third party except with the prior written consent of COMMERCE or
as may be required by law. The Contractor shall take all necessary steps to assure that Confidential
lnformation is safeguarded to prevent unauthorized use, sharing, transfer, sale or disclosure of
Confidential lnformation or violation of any state or federal laws related thereto. Upon request, the
Contractor shall provide COMMERCE with its policies and procedures on confidentiality.
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COMMERCE may require changes to such policies and procedures as they apply to this Contract
whenever COMMERCE reasonably determines that changes are necessary to prevent
unauthorized disclosures. The Contractor shall make the changes within the time period specified
by COMMERCE. Upon request, the Contractor shall immediately return to COMMERCE any
Confidential lnformation that COMMERCE reasonably determines has not been adequately
protected by the Contractor against unauthorized disclosure.
C. Unauthorized Use or Disclosure. The Contractor shall notify COMMERCE within five (5) working
days of any unauthorized use or disclosure of any confidential information, and shall take necessary
steps to mitigate the harmful effects of such use or disclosure.
6. COPYRIGHT
Unless otherwise provided, all Materials produced under this Contract shall be considered "works for
hire" as defined by the U.S. Copyright Act and shall be owned by COMMERCE. COMMERCE shall be
considered the author of such Materials. ln the event the Materials are not considered "works for hire"
under the U.S. Copyright laws, the Contractor hereby irrevocably assigns all right, title, and interest in
all Materials, including all intellectual property rights, moral rights, and rights of publicity to COMMERCE
effective from the moment of creation of such Materials.
"Materials" means all items in any format and includes, but is not limited to, data, reports, documents,
pamphlets, advertisements, books, magazines, surveys, studies, computer programs, films, tapes,
and/or sound reproductions. "Ownership" includes the right to copyright, patent, register and the ability
to transfer these rights.
For Materials that are delivered under the Contract, but that incorporate pre-existing materials not
produced under the Contract, the Contractor hereby grants to COMMERCE a nonexclusive, royalty-
free, irrevocable license (with rights to sublicense to others) in such Materials to translate, reproduce,
distribute, prepare derivative works, publicly perform, and publicly display. The Contractor warrants and
represents that the Contractor has all rights and permissions, including intellectual property rights,
moral rights and rights of publicity, necessary to grant such a license to COMMERCE.
The Contractor shall exert all reasonable effort to advise COMMERCE, at the time of delivery of
Materials furnished under this Contract, of all known or potential invasions of privacy contained therein
and of any portion of such document which was not produced in the performance of this Contract. The
Contractor shall provide COMMERCE with prompt written notice of each notice or claim of infringement
received by the Contractor wlth respect to any Materials delivered under this Contract. COMMERCE
shall have the right to modify or remove any restrictive markings placed upon the Materials by the
Contractor.
7, DISPUTES
ln the event that a dispute arises under this Agreement, it shall be determined by a Dispute Board in
the following manner: Each party to this Agreement shall appoint one member to the Dispute Board.
The members so appointed shall jointly appoint an additional member to the Dispute Board. The
Dispute Board shall review the facts, Agreement terms and applicable statutes and rules and make a
determination of the dispute. The Dispute Board shall thereafter decide the dispute with the majority
prevailing. The determination of the Dispute Board shall be final and binding on the parties hereto. As
an alternative to this process, either of the parties may request intervention by the Governor, as
provided by RCW 43.17.330, in which event the Governor's process will control.
8. GOVERNING LAWANDVENUE
This Contract shall be construed and interpreted in accordance with the laws of the state of Washington,
and any applicable federal laws, and the venue of any action brought hereunder shall be in the Superior
Court for Thurston County.
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9. INDEMNIFICATION
Each party shall be solely responsible for the acts of its employees, officers, and agents
10 LICENSING. ACCR ITAED N AND REGISTRATION
The Contractor shall comply with all applicable local, state, and federal licensing, accreditation and
registration requirements or standards necessary for the performance of this Contract.
11. RECAPTURE
ln the event that the Contractor fails to perform this Contract in accordance with state laws, federal
laws, and/or the provisions of this Contract, COMMERCE reserves the right to recapture funds in an
amount to compensate COMMERCE for the noncompliance in addition to any other remedies available
at law or in equity.
Repayment by the Contractor of funds under this recapture provision shall occur within the time period
specified by COMMERCE. ln the alternative, COMMERCE may recapture such funds from payments
due under this Contract.
12. RECORDS NTENANCE
The Contractor shall maintain books, records, documents, data and other evidence relating to this
contract and performance of the services described herein, including but not limited to accounting
procedures and practices that sufficiently and properly reflect all direct and indirect costs of any nature
expended in the performance of this contract.
The Contractor shall maintain records that identify, in its accounts, all federal awards received and
expended and the federal programs under which they were received, by Catalog of Federal Domestic
Assistance (CFDA) title and number, award number and year, name of the federal agency, and name
of the pass-through entity.
The Contractor shall retain such records for a period of six (6) years following the date of final payment.
At no additional cost, these records, including materials generated under the contract, shall be subject
at all reasonable times to inspection, review or audit by COMMERCE, personnel duly authorized by
COMMERCE, the Office of the State Auditor, and federal and state officials so authorized by law,
regulation or agreement.
lf any litigation, claim or audit ts started before the expiration of the six (6) year period, the records shall
be retained until all litigation, claims, or audit findings involving the records have been resolved.
13. SAVINGS
ln the event funding from state, federal, or other sources is withdrawn, reduced, or limited in any way
after the effective date of this Contract and prior to normal completion, COMMERCE may suspend or
terminate the Contract under the "Termination for Convenience" clause, without the ten calendar day
notice requirement. ln lieu of termination, the Contract may be amended to reflect the new funding
limitations and conditions.
14. SEVERABILITY
The provisions of this contract are intended to be severable. lf any term or provision is illegal or invalid
for any reason whatsoever, such illegality or invalidity shall not affect the validity of the remainder of
the contract.
15. SUBCONTRACTING
The Contractor may only subcontract work contemplated under this Contract if it obtains the prior written
approval of COMMERCE.
lf COMMERCE approves subcontracting, the Contractor shall maintain written procedures related to
subcontracting, as well as copies of all subcontracts and records related to subcontracts. For cause,
COMMERCE in writing may: (a) require the Contractor to amend its subcontracting procedures as they
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relate to this Contract; (b) prohibit the Contractor from subcontracting with a particular person or entity;
or (c) require the Contractor to rescind or amend a subcontract.
Every subcontract shall bind the Subcontractor to follow all applicable terms of this Contract. Contractor
shall incorporate 2 CFR Part 200, Subpart F audit requirements into all subcontracts. The Contractor
is responsible to COMMERCE if the Subcontractor fails to comply with any applicable term or condition
of this Contract. The Contractor shall appropriately monitor the activities of the Subcontractor to assure
fiscal conditions of this Contract. ln no event shall the existence of a subcontract operate to release or
reduce the liability of the Contractor to COMMERCE for any breach in the performance of the
Contractor's duties.
Every subcontract shall include a term that COMMERCE and the State of Washington are not liable for
claims or damages arising from a Subcontractor's performance of the subcontract.
16. SURVIVAL
The terms, conditions, and warranties contained in this Contract that by their sense and context are
intended to survive the completion of the performance, cancellation or termination of this Contract shall
so survive.
17. TERMINATION FOR CAUSE
ln the event COMMERCE determines the Contractor has failed to comply with the conditions of this
contract in a timely manner, COMMERCE has the right to suspend or terminate this contract. Before
suspending or terminating the contract, COMMERCE shall notify the Contractor in writing of the need
to take corrective action. lf corrective action is not taken within 30 calendar days, the contract may be
terminated or suspended.
ln the event of termination or suspension, the Contractor shall be liable for damages as authorized by
law including, but not limited to, any cost difference between the original contract and the replacement
or cover contract and all administrative costs directly related to the replacement contract, e.9., cost of
the competitive bidding, mailing, advertising and staff time.
COMMERCE reserves the right to suspend all or part of the contract, withhold further payments, or
prohibit the Contractor from incurring additional obligations of funds during investigation of the alleged
compliance breach and pending corrective action by the Contractor or a decision by COMMERCE to
terminate the contract. A termination shall be deemed a "Termination for Convenience" if it is
determined that the Contractor: (1) was not in default; or (2) failure to perform was outside of his or her
control, fault or negligence.
The rights and remedies of COMMERCE provided in this contract are not exclusive and are in addition
to any other rights and remedies provided by law.
18. TERMINATION FOR GONVENIENCE
Except as otherwise provided in this Contract, COMMERCE may, by ten (10) business days written
notice, beginning on the second day after the mailing, terminate this Contract, in whole or in part. lf this
Contract is so terminated, COMMERCE shall be liable only for payment required under the terms of
this Contract for services rendered or goods delivered prior to the effective date of termination.
19. TERMINATION PROCEDURES
Upon termination of this contract, COMMERCE, in addition to any other rights provided in this contract,
may require the Contractor to deliver to COMMERCE any property specifically produced or acquired
for the performance of such part of this contract as has been terminated. The provisions of the
"Treatment of Assets" clause shall apply in such property transfer.
COMMERCE shall pay to the Contractor the agreed upon price, if separately stated, for completed
work and services accepted by COMMERCE, and the amount agreed upon by the Contractor and
COMMERCE for (i) completed work and services for which no separate price is stated, (ii) partially
completed work and services, (iii) other property or services that are accepted by COMMERCE, and
(iv) the protection and preservation of property, unless the termination is for default, in which case the
Authorized Representative shall determine the extent of the liability of COMMERCE. Failure to agree
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with such determination shall be a dispute within the meaning of the "Disputes" clause of this contract.
COMMERCE may withhold from any amounts due the Contractor such sum as the Authorized
Representative determines to be necessary to protect COMMERCE against potential loss or liability.
The rights and remedies of COMMERCE provided in this section shall not be exclusive and are in
addition to any other rights and remedies provided by law or under this contract.
After receipt of a notice of termination, and except as otherwise directed by the Authorized
Representative, the Contractor shall:
A. Stop work under the contract on the date, and to the extent specified, in the notice;
B. Place no further orders or subcontracts for materials, services, or facilities except as may be
necessary for completion of such portion of the work under the contract that is not terminated;
C. Assign to COMMERCE, in the manner, at the times, and to the extent directed by the Authorized
Representative, all of the rights, title, and interest of the Contractor under the orders and
subcontracts so terminated, in which case COMMERCE has the right, at its discretion, to settle or
pay any or all claims arising out of the termination of such orders and subcontracts;
D. Settle all outstanding liabilities and all claims arising out of such termination of orders and
subcontracts, with the approval or ratification of the Authorized Representative to the extent the
Authorized Representative may require, which approval or ratification shall be final for all the
purposes of this clause;
E. Transfer title to COMMERCE and deliver in the manner, at the times, and to the extent directed by
the Authorized Representative any property which, if the contract had been completed, would have
been required to be furnished to COMMERCE;
F. Complete performance of such part of the work as shall not have been terminated by the Authorized
Representative; and
G. Take such action as may be necessary, or as the Authorized Representative may direct, for the
protection and preservation of the property related to this contract, which is in the possession of
the Contractor and in which the Authorized Representative has or may acquire an interest.
20. WAIVER
Waiver of any default or breach shall not be deemed to be a waiver of any subsequent default or breach.
Any waiver shall not be construed to be a modification of the terms of this Contract unless stated to be
such in writing and signed by Authorized Representative of COMMERCE.
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Attachment A
Scope of Work
This funding is made available under section 601(a) of the SocialSecurityAct, as added by section 5001
of the Coronavirus Aid, Relief, and Economic Security Act ("CARES Act") and Section V and Vl of the
CARES Act, for costs incurred due to the public health emergency with respect to the Coronavirus Disease
2019 (COVID-1 9). Under the CARES Act, the Coronavirus Relief Fund may be used to cover costs that:
1. Are necessary expenditures incurred due to the public health emergency with respect to the
Coronavirus Disease 2019 (COVID-19); AND
2. Are not accounted for in the budget most recently approved as of March 27,2020 (the date
of enactment of the CARES Act) for the State or government.
These funds may be used to reimburse for expenditures incurred during the period of March 1,2020\hru
Oct. 31 , 2020. Please note: ln order to ensure all funds have been fully utilized prior to the US
Treasury's December 30,2020 end date, the State of Washington must closeout contracts by October
31,2020. All final requests for reimbursement must be received no later than November 15,2020.
Expenditures must be used for necessary actions taken to respond to the public health emergency. These
may include expenditures incurred to allow the local government to respond directly to the emergency, such
as by addressing medical or public health needs, as well as expenditures incurred to respond to second-
order effects of the emergency, such as by providing economic support to those suffering from employment
or business interruptions due to COVID-'l 9-related business closures.
Funds may not be used to fill shortfalls in government revenue to cover expenditures that would not
otherwise qualify under the statute. Although a broad range of uses is allowed, revenue replacement is not
a permissible use of Fund payments.
Payments may be used only to cover costs not accounted for in the budget most recently approved as of
March 27,2020. A cost meets this requirement if either:
1. The cost cannot lawfully be funded using a line item, allotment, or allocation within that budget; OR
2. The cost is for a substantially different use from any expected use of funds in such a line item,
allotment, or allocation.
The "most recently approved" budget is the enacted budget for the relevant fiscal period for the particular
government. A cost is not considered to have been accounted for in a budget merely because it could be
met using a budgetary stabilization fund, rainy day fund, or similar reserve account.
Allowable expenditures include. but are not limited to:
Medical expenses such as:
a. COVID-19-related expenses of public hospitals, clinics, and similar facilities.
b. Expenses of establishing temporary public medical facilities and other measures to increase
COVID-19 treatment capacity, including related construction costs.
c. Costs of providing COVID-19 testing, including serologicaltesting.
d. Emergency medical response expenses, including emergency medical transportation, related
to COVID-19.
e. Expenses for establishing and operating public telemedicine capabilities for COVID-19-related
treatment.
2. Public health expenses such as
State of Washington
Department of Commerce
Version 072019
Page 10
lnteragency Agreement
Page 143 of 189
Attachment A
a. Expenses for communication and enforcement by State, territorial, local, and Tribal
governments of public health orders related to COVID-l9.b. Expenses for acquisition and distribution of medical and protective supplies, including
santtizing products and personal protective equipment, for medical personnel, police officers,
social workers, child protection services, and child welfare officers, direct service providers for
older adults and individuals with disabilities in community settings, and other public health or
safety workers in connection with the COVID-l9 public health emergency.c. Expenses for disinfection of public areas and other facilities, e g , nursing homes, in response
to the COVID-'19 public health emergency.d. Expenses for technical assistance to local authorities or other entities on mitigation of COVID-
19-related threats to public health and safety.e. Expenses for public safety measures undertaken in response to COVID-19.f. Expenses for quarantining individuals.
3. Payroll expenses for public safety, public health, health care, human services, and similar
employees whose services are substantially dedicated to mitigating or responding to the COVID-
19 public health emergency.
4. Expenses of actions to facilitate compliance with COVID-19-related public health measures, such
AS:a. Expenses for food delivery to residents, including, for example, senior citizens and other
vulnerable populations, to enable compliance with COVID-'19 public health precautions.b. Expenses to facilitate distance learning, including technological improvements, in connection
with schoolclosings to enable compliance with COVID-19 precautions.c. Expenses to improve telework capabilities for public employees to enable compliance with
COVID-1 I public health precautions.d. Expenses of providing paid sick and paid family and medical leave to public employees to
enable compliance with COVID-19 public health precautions.e. COVID-19-related expenses of maintaining state prisons and county jails, including as relates
to sanitation and improvement of social distancing measures, to enable compliance with
COVID-19 public health precautions.f. Expenses for care for homeless populations provided to mitigate COVID-19 effects and enable
compliance with COVID-19 public health precautions.
5. Expenses associated with the provision of economic support in connection with the COVID-19
public health emergency, such as:a. Expenditures related to the provision of grants to small businesses to reimburse the costs of
business interruption caused by required closures.b. Expenditures related to a State, territorial, local, or Tribal government payroll support program.c. Unemployment insurance costs related to the COVID-19 public health emergency if such costs
will not be reimbursed by the federal government pursuant to the CARES Act or otheruyise.
6. Any other COVID-'lg-related expenses reasonably necessary to the function of government that
satisfy the Fund's eligibility criteria.
State of Washington
Department of Commerce
Version 072019
Page 1 1
lnteragency Agreement
Page 144 of 189
Attachment B
Budget & lnvoicing
The Contractor shall determine the appropriate budget and use of funds within the following 6 budget
categories and their sub-categories:
1. Medical
2. Public Health
3. Payroll4. Actions to Comply with Public Health Measures
5. Economic Support
6. Other Covid-19 Expenses
The Contractor shall submit invoice reimbursement requests to the Commerce Representative using the
Commerce Contract Management System's (CMS) Online A-19 Portal. Each reimbursement request must
include:
1. A-19 Certification form - An authorized party of the local government will certify each invoice (A'19)
submitted for reimbursement and attest that all incurred expenditures meet the US Treasury
Department's guidance: https://home.treasurv.oov/svstem/files/1 36/Coronavirus-Relief-Fund-
Gu idance-for-State-Territorial-Local-and-Tribal-Govern ments. pdf
2. A-19 Activity Report
3. A detailed breakdown of the expenditures incurred within each applicable budget sub-category on
the A-19 Activity Report.
The A-19 Certification and Activity Report templates will be provided with the executed contract. The
documents are included in Attachment C and Attachment D for reference.
Receipts and proof of payment for costs incurred do not need to be submitted with A-19s All contractors
are required to maintain accounting records in accordance with state and federal laws. Records must be
sufficient to demonstrate the funds have been used in accordance with section 601 (d) of the Social Security
Act. Commerce reserves the right to audit any costs submitted for reimbursement. The Contractor shall
comply with Commerce A-19 audits and provide the appropriate records upon request.
State of Washington
Department of Commerce
Version 072019
Page 12
lnteragency Agreement
Page 145 of 189
State of Washington
Department of Commerce
Attachment C
Version 072019
Page 13
t l)n
LOCAL GOVERNMENT CORONAVIRUS RELIEF FUNDS
CERTIFICATION
t,am the <TITLE> of <LOCAL GOVERiIMENT>, and I certify that:
1. I have the authority and approval from the governing body on behalf of the Local
Government to request reimbursement from the Department of Commerce
(Commerce) per contract number <COMMERCE CONTRACT NUMBED from the
allocation of the Coronavirus Relief Fund as created in section 5001 of H.R.748, the
Coronavirus Aid, Relief, and Economic Security Act ("CARES Act") for eligible
expenditures included on the corresponding A-19 invoice voucher for report period
<REPORT PERIOD FROM A-19>.
2. I understand that as additional federal guidance becomes available, a contract
amendment to the agreement between Commerce and the Local Government may
become necessary.
3. I understand Commerce will rely on this certification as a material representation in
processing this reimbursement.
4. I certify the use of funds submitted for reimbursement frorn the Coronavirus Relief
Funds under this contract were used only to cover those costs that:
a. Are necessory expenditures incurred due to the public health emergency with
respect to the Coronavirus Disease 2019 (COVID-19);
b. Wg,g not accounted for in the budget most recently approved as of March 27,2O2O;
and
c. were incurred during the period that begins on March 1, 2020, and ends on october
3L,2020.
5. lunderstandtheuseoffundspursuanttothiscertificationmustadheretoofficial
federal guidance issued or to be issued on what constitutes a necessary expenditure.
We have reviewed the guidance established by U.S. Department of the Treasuryr and
certify costs meet the required guidance. Any funds expended by the Local Government
or its subcontractor(s) in any manner that does not adhere to official federal guidance
shall be returned to the State of Washington.
Footnote:
I - Guidance ar,ailable at
(4ri0,20:0)
lnteragency Agreement
aa
)
'lrcl'-Frmd-Gurdmce-for- Sra
Page 146 of 189
State of Washington
Department of Commerce
Attachment C
Version 072019
Page 14
LOCAL GOVERNMENT CORONAVIRUS RELIEF FUNDS CERTIFICATION
Pagc 2 of2
5. I understand the Local Government receiving funds pursuant to this certification shall
retain documentation of all uses of the funds, including but not limited to invoices
and/or sales receipts in a manner consistent with 5200.333 Retention requirements for
records of 2 CFR Part 200 Uniform Administrative Requirements, Cost Principles, ond
Audit Requirements for Federol Awords (Uniform Guidance). Such documentation shall
be produced to Commerce upon request and may be subject to audit by the State
Auditor.
7. I understand any funds provided pursuant to this certification cannot be used as a
revenue replacement for lower than expected tax or other revenue collections.
8. I understand funds received pursuant to this certification cannot be used for
expenditures for which the Local 6overnment has received any other emergency COVID-
19 supplemental funding (whether state, federal or private in nature) for that same
expense.
I certify that I have read the above certification and my statements contained herein are true
and correct to the best of my knowledge.
Printed Name
Title
Signature
I
Date:
lnteragency Agreement
Page 147 of 189
CRF A-19 Activity Fleport
INSTRUCTIONS
INSTRUCllONS:
A completed CRF A-19 Certification and Activity Report must be submitted with each A-19 reimbursement request.
The A-'19 Actlity Report must be submitted as an Excel spreadsheet. not a PDF. You must also include a detailed
breakdown of the individual expenditures reported in Column F for each applicabh sub+ategory included on the A-19
Activfu Report.
There are 6 primary budget categorres,
1. Medical Expenses
2. Public Health Expenses
3. Payroll expenses for public employees dedicated to COVID-I9
4" Expenses to facilitate compliance with COVID-19-rneasures
5. Economic Supports
6. Other COVID-I9 Expenses
Each primary budget cateEory includes subrategories and proviles an option to add "othefl sub+ateoories not
listed.
Follorv the below instructions when completing the A-19 Activity Report
1 REPORT PERIOO - Enter the report period into Cell Dl of the A-19 Activity Report,a This should match the report period entered on the corresponding A-19.
b Report period should include I'tl,llYY to ['lh{iYYYY. i,e. 03/20, hlarch 2020, 03,'2020. etc
2 COLUMN E - Enter the total amount of all previous reimbursement requests submitted to Commerce for each
applicable sub-category.
3 COLUMN F - Enler the total amount beirq requested in the current reimbursement request for each applicable
sub-category.
4 COLUMN H: USE OF FUNDS - You must include a general description of the use of the funds being requested
for each applicable sub-category. Keep descriptions as concise as possible. but include adequate context to
demonstrate how these funds helped address the COVID-19 emergency. lf applicable, please consider.
a Providing a brief description of the specific activities performed"
b ldentifying specific populations served.
c ldentrfying specrfic programs created or utilized.
d lncluding any known or intended outcomes. resuhs, or community impacts
5 OTHER SUB-CATEGORIES - Budget categories 1-5 include a placeholderto add an addrtional sub-category if
neces5ary.
a Enter a Title for other expenses added within the appropriate budget category.b Enter titles into Cells D10, D19, D27, D35, and D41.c There is only one "other" placeholder in each budget category section. Please combine muhiple "other" sub-
categories added to the same budget category.
6 OTHER BUDGET CATEGORIES - Budget category 6 is where you should include any eligible expenditures
that don't fall under budget categories 1 -5.
a Enter a Title for these "other" expenses within budget category 6.b Enter titles into Cells Dtt4 - Drl8.c There are only 5 entry fields available within Budget Category 6
State of Washington
Department of Commerce
Attachment D
Version 072019lnteragency Agreement
Page 1 5
Page 148 of 189
coronavlrus RellstFund
A-19 Aclivity Repod
Beport Period;
(s
s
q sI
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c.
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F.
Sub-Total:
1 frpenss
Oth.r:
EpSlc-"!c_y_TSqi_c!
i!,s:
covl0-19 tlstins,-ih(1.u4[rl_i!lo.]9s-i!ql-t9sJ!n-s- - - _ _ _ _ _ _ _
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ss
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sub Total:
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8.
c.
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F.
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9pl._!-n_d-Tl_t[9!9!r!rylr-q!o-r-h-olr1.]c-s-3!9p-ul-!_t,-ol':__---
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Sub-Total:
s
6 Other COVlDlg
E,
c.
?!yr-o!-s!ppg4!!qEr!9
oth..:
4 Expensei to facilitate compliance with coVlD-19'measures
-r_.!Stoj!gleqqljt-qi-gf _D-u_b!ig_.!tplof _._.t__-_-
3 payrollexpenses for publlc employes
0. !!9_r!_+ryjc_!_5_
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A !ln! ll _8_uI'Ji!:s_ 9FJ'J5- toJ _b_u! i!t!:r_ il!._.!qpJ'_oj': - - - - _ _ _ - _
a !-u!lj._la_f_eY_B lg!l]E- Ig.-l!h-
Prevlously
Reportcd
Currant
Exprnditurer
thlc lnvolcc
Totel
Cumul.tiY.Eligible Exprnditures Brlef Oercrlptlon of Uae of Funde
Iturrsndlturrg
s sTOTAL: S
Attachment D
Version 072019
Page 1 6
State of Washington
Department of Commerce
lnteragency Agreement
lqsldgr-ts_ _
Page 149 of 189
City of Port Orchard
216 Prospect Street, Port Orchard, WA 98366
(360) 876-4407 • FAX (360) 895-9029
Agenda Staff Report
Agenda Item No.: Business Item 7E Meeting Date: October 13, 2020
Subject: Adoption of a Resolution Amending Prepared by: Noah Crocker
Resolution No. 029-20 to Increase the Finance Director
Total Amount of Available Grant Funding, Atty Routing No.: N/A
and to Approve an Amendment to Contract Atty Review Date: N/A
No. 063-20 with the Kitsap Economic
Development Alliance for Administration of
the Port Orchard CARES Small Business
Relief Grant Program
Summary: On March 27, 2020, the United States Congress adopted the Coronavirus Aid, Relief, and
Economic Security Act (“CARES Act”) which, among other things, amended Section 601(a) of the Social
Security Act and established the Coronavirus Relief Fund into which Congress appropriated $150 billion to
make payments for specified uses to States and certain local governments. Guidance issued by the U.S.
Treasury Department indicates that necessary expenditures incurred due to the COVID-19 public health
emergency include costs incurred to support local businesses that suffered losses due to COVID-19 business
interruptions, or incurred costs for personal protective equipment or other materials, supplies and
equipment needed to safely operate following a COVID-19-related closure.
The Mayor and City Council believe a functioning local economy is critical to protect the health and wellbeing
of Port Orchard residents. The failure of small businesses due to the pandemic will create a serious hardship
on owners and individuals employed by those businesses and create additional financial burdens on
government services by increasing demand for government support to individuals who are unemployed with
limited sales tax revenue to fund additional services.
Cognizant of the above, on July 14, 2020, by Resolution No. 029-20, the City Council established Port Orchard
CARES, a Small Business Relief Grant Program, the focus of which is to provide short-term economic stability
via monetary grants to qualifying businesses located within City limits. The Program provided a total of
$100,000 in funding to qualifying business that met the specified program eligibility requirements, and an
additional $2,000 for a non-profit service provider to administer of the program. By motion on July 14, 2020,
the City Council authorized the Mayor to execute an agreement with Kitsap Economic Development Alliance
(“KEDA”) to administer the Program. KEDA is a Washington nonprofit corporation with a mission to serve as
a resource for businesses located in the City of Port Orchard, and to promote economic opportunities in
Kitsap County. After extensive advertising and personal outreach to the City’s businesses, the City was able
to reach dozens of businesses and exhaust the allocated funds in grants.
Page 150 of 189
Staff Report 7E
Page 2 of 2
On August 31, 2020, Governor Inslee announced an increase in allocated CARES Act funding to the City. By
this Resolution, the City Council would increase the grant funding available for the Program to a total of
$147,542 from the general fund, and to seek reimbursement of these funds through the CARES Act program.
The City Council would also amend the existing agreement with KEDA to cover the additional grant
management for these additional funds, and increase the total allocation for administrative costs to cover the
additional work from $2,000 to an amount not to exceed $3,500 ($100 per grant awarded).
Recommendation: Staff recommends amending Resolution No. 029-20 to increase the grant funding for the
Port Orchard Cares, Small Business Relief Grant Program, and to authorize an amendment to the agreement
with KEDA for the Program’s administration.
Relationship to Comprehensive Plan: N/A
Motion for consideration: “I move to adopt a Resolution amending the Port Orchard Cares, Small Business
Relief Grant Program to increase the total amount of available grant funding, authorizing the Mayor to
implement the Program as amended, and authorizing the Mayor to execute an amended contract with the
Kitsap Economic Development Alliance for the administration of the Program.”
Fiscal Impact: ~$150,842.00 of CARES Funding
Alternative: Do not approve of Resolution and provide alternative guidance.
Attachment: Resolution and Exhibit A thereto, Copy of Resolution No. 029-20.
Page 151 of 189
RESOLUTION NO. ____
A RESOLUTION OF THE CITY OF PORT ORCHARD, WASHINGTON,
AMENDING RESOLUTION NO. 029-20, PORT ORCHARD CARES, A
SMALL BUSINESS RELIEF GRANT PROGRAM IN RESPONSE TO THE
NOVEL CORONAVIRUS (COVID-19).
WHEREAS, On March 27, 2020, the United States Congress adopted the Coronavirus
Aid, Relief, and Economic Security Act (“CARES Act”) which, among other things, amended
Section 601(a) of the Social Security Act and established the Coronavirus Relief Fund into which
Congress appropriated $150 billion to make payments for specified uses to States and certain
local governments; and
WHEREAS, the City received an allocation of CARES Act funding from the allocated
funding for the state of Washington in May 2020, and on August 31, 2020, the Governor
announced an increased allocation; and
WHEREAS, On July 14, 2020, by Resolution No. 029-20, the City Council established Port
Orchard CARES, a Small Business Relief Grant Program (the “Program”), the focus of which is to
provide short-term economic stability via monetary grants to qualifying businesses located
within City limits, and allocated $102,000 for the program; and
WHEREAS, by motion the Council authorized the Mayor to execute a contract to form a
partnership with the Kitsap Economic Development Alliance (“KEDA”), a Washington nonprofit
corporation with a mission to serve as a resource for businesses located in the City, to
administer the City’s Program; and
WHEREAS, due to the increased funding allocated to the City, the City Council desires to
increase the amount of funding available through the Program and amend the contract with
KEDA to ensure the continued administration of the Program for these additional funds; now,
therefore,
THE CITY COUNCIL OF THE CITY OF PORT ORCHARD, WASHINGTON, HEREBY RESOLVES
AS FOLLOWS:
THAT: The City Council hereby adopts the recitals expressed above as Findings of Fact in
support of this Resolution.
THAT: The City Council amends Resolution No. 029-20 to increase the amount of
allocated City general funding for the Port Orchard Cares, Small Business Grant Relief
Program, to a new total amount of $150,842.00, to be utilized for economic recovery
response to the impacts resulting from the COVID-19 pandemic. The City Council
specifically directs the Mayor to disseminate, in partnership with KEDA, a total of
$147,542 to eligible small businesses pursuant to the program criteria set forth in
Resolution No. 029-20, and $100 per application to KEDA to cover costs of administering
Page 152 of 189
Staff Report 7E
Page 2 of 2
the Program, up to a maximum amount of $3,500. The City Council further directs the
Mayor to seek reimbursement from the CARES Act program for these expenditures.
THAT: The City Council authorizes the Mayor to execute an amendment to the
agreement with KEDA for administration of the Program attached hereto as Exhibit A
and incorporated herein by this reference.
THAT: The City Council directs the Mayor to adopt any necessary administrative
processes to implement this resolution. The Mayor shall report to the Council any
actions taken in accordance with this Resolution and shall do so with thirty (30) days of
taking such an action.
PASSED by the City Council of the City of Port Orchard, SIGNED by the Mayor and attested
by the Clerk in authentication of such passage this 13th day of October 2020.
Robert Putaansuu, Mayor
ATTEST:
Brandy Rinearson, MMC, City Clerk
Page 153 of 189
AMENDMENT NO. 1
TO THE AGREEMENT FOR THE ADMINISTRATION OF
THE PORT ORCHARD CARES
SMALL BUSINESS RELIEF GRANT PROGRAM
THIS AMENDMENT to the Agreement for the Administration of the Port Orchard
CARES Small Business Relief Grant Program (“Agreement”) between City of Port Orchard, a
Washington municipal corporation (“City”) and the Kitsap Economic Development Alliance
(“KEDA”), a Washington nonprofit corporation, is made effective upon mutual execution.
WHEREAS, the parties executed the Agreement for the administration of the Port Orchard
CARES Small Business Relief Grant Program ( “Program”), which formalized a partnership
between the City and KEDA for the performance of services as a subrecipient of the City’s
allocated Coronavirus Relief Funds (CRF) from the Coronavirus Aid, Relief, and Economic
Security Act (“CARES Act”); and
WHEREAS, on September 1, 2020, the City received an additional CRF allocation, and
desires to increase the grant funding available to small businesses under this Program, allow for
continued administrative support to KEDA for the effectuation of the Program, and extend the
timelines for the Program; and
WHEREAS, the parties desire to amend the Agreement as described herein;
NOW, THEREFORE, in consideration of the mutual benefits accruing, it is agreed by
and between the parties thereto as follows:
A. Section 1 of the Agreement is amended to read as follows:
1. City’s Duties. The City shall provide the funding for the Port Orchard
CARES Program, and shall make grant payments directly to selected grant recipients.
The City shall pay to KEDA for its actual costs in administering the Program in an amount
of $100 for each application processed, not to exceed a total of $3,500 2,000. Upon receipt of an
invoice from KEDA the City agrees to pay this amount within thirty (30) days.
B. Section 2 of the Agreement is amended to read as follows:
2. KEDA’s Duties. KEDA shall administer the Program as follows:
***
H. KEDA shall ensure all Eligible Expenses by grant recipients are incurred
between March 1, 2020 and October 31, 2020. Any expenses incurred before or after this period
are not Eligible Expenses for Program Award Funds. KEDA agrees that all proposed grant
recipients shall be submitted to the City for review on or before October 30 September 15, 2020,
Page 154 of 189
and that all documentation required under this Agreement shall be submitted to the City no later
than November October 1, 2020.
***
C. Exhibit B is replaced with the version attached hereto as Attachment A.
D. In all other respects, the Agreement between the parties shall remain in full force
and effect, amended as set forth herein, but only as set forth herein.
IN WITNESS WHEREOF, the parties have executed this Amendment on the day and
year set forth below.
CITY OF PORT ORCHARD,
WASHINGTON
By:_______________________
Rob Putaansuu, Mayor
Date:______________________
Kitsap Economic Development Alliance By:________________________________
Typed/Printed Name:__________________
Its:_________________________________
Date:_______________________________
APPROVED AS TO FORM:
By:_______________________
Charlotte A. Archer, City Attorney
Date: ________________________
Page 155 of 189
[Amended] Exhibit B to the Agreement with KEDA
1
AGREEMENT FOR THE RECEIPT OF FUNDS FROM
PORT ORCHARD CARES, SMALL BUSINESS RENT RELIEF PROGRAM
THIS AGREEMENT is entered into on this _____ day of __ 2020, by and between the
City of Port Orchard, hereinafter “the City,” and __________________, recipient of a grant award
under the Port Orchard Cares, Small Business Rent Relief Program, hereinafter “the Recipient.”
RECITALS
WHEREAS, on March 27, 2020, the United States Congress adopted the Coronavirus Aid,
Relief, and Economic Security Act (“CARES Act”) which, among other things, amended Section
601(a) of the Social Security Act and established the Coronavirus Relief Fund into which Congress
appropriated $150 billion to make payments for specified uses to States and certain local
governments; and
WHEREAS, the Coronavirus Relief Fund is available to reimburse government recipients
for necessary expenditures incurred due to the COVID-19 public health emergency that were not
accounted for in the government recipient’s most-recently appropriated budget and that were
incurred during the period between March 1, 2020 and December 30, 2020; and
WHEREAS, guidance issued by the U.S. Treasury Department indicates that necessary
expenditures incurred due to the COVID-19 public health emergency include costs incurred to
support local businesses that suffered losses due to COVID-19 business interruptions, or incurred
costs for personal protective equipment or other materials, supplies and equipment needed to safely
operate following a COVID-19-related closure; and
WHEREAS, the State of Washington has decided to distribute a certain portion of its share
of the CARES Act funds to Washington Cities, including the City of Port Orchard, with such funds
being administered through the Washington State Department of Commerce; and
WHEREAS, under the Washington State Department of Commerce Interagency
Agreement with the City of Port Orchard through the Coronavirus Relief Fund for Local
Governments reimbursable expenditures must be incurred during the period between March 1,
2020 and October 31, 2020 in order for the State of Washington to closeout its contracts in time to
meet the United States Treasury’s December 30, 2020 end date; and
WHEREAS, the City established the Port Orchard Small Business Rent Relief Program
(“Program”), the focus of which is to provide short-term economic stability via monetary grants
to qualifying businesses and community organizations located within City limits for rent relief;
and
WHEREAS, the City has determined the Recipient eligible for assistance under this
Program.
NOW, THEREFORE, the parties herein do mutually agree as follows:
Page 156 of 189
[Amended] Exhibit B to the Agreement with KEDA
2
1. Award Amount and Eligible Expenses. The total amount to be awarded to Recipient
under the Program is $_________ (“Program Award Funds”). Recipient shall use Program
Award Funds only to pay or reimburse Recipient for business leasehold rent(s) (“Eligible
Expenses”) incurred during the time period set forth in Section 2.
Recipient agrees and acknowledges that the Program Award Funds shall be paid on
behalf of the Recipient by the City directly to the landlord/owner identified on the
supplied lease agreement.
**Recipient Initial to Acknowledge: _____
Expenditure of Program Award Funds on Ineligible Expenses by the Recipient or
landlord/owner shall be subject to recapture at the discretion of the City. The Recipient
agrees to repay to the City, within thirty (30) days or such other the time specified by the
City, all Program Award Funds determined by the City to have been spent by the Recipient
on an Ineligible Expense. In the alternative, the City may recapture such funds from
payments due under this Agreement, if any.
2. Time Period. All Eligible Expenses must be incurred by the Recipient between March 1,
2020 and October 31, 2020. Any expenses incurred before or after this period are not
Eligible Expenses for Program Award Funds. The Recipient understands that any expenses
incurred more than Program Award Funds are the Recipient’s sole responsibility and will
not be paid by the City.
3. Compliance with Federal, State and Local Laws. The Recipient shall comply with and
obey all applicable federal, state and local laws, regulations, and ordinances. Should the
Recipient’s spending of the Program Award Funds be inconsistent with applicable laws,
provisions of this Agreement, or otherwise inappropriate, the City shall have the right to
the return of any portion of the Funds that are later determined to have been spent in
violation of applicable laws. In the alternative, the City may recapture such funds from
payments due under this Agreement. The City shall not exercise this right until it has given
written notice of noncompliance with applicable laws or this Agreement to Recipient, and
allowed Recipient a period of ten (10) days from the date of notice for Recipient to cure
the noncompliance. The right of recapture provided in this section is in addition to and not
in lieu of any right which Washington law provides for breach of contract.
a. Requirement to Provide Accurate Information. The Recipient understands and
acknowledges that providing false information on any documents submitted to the
City or its designees as part of the Recipient’s participation in the Program may
constitute fraud, and may be subject to civil and/or criminal penalties and/or
sanctions.
b. No Use of Program Award Funds for Expenses Covered by Other Programs. The
Recipient shall not use Program award funds to cover payroll or other employee-
related or business-associated costs for which the Recipient has received other
federal, state or regional funds, including without limitation funds made available
Page 157 of 189
[Amended] Exhibit B to the Agreement with KEDA
3
under the Payroll Protection Program (“PPP”) or unemployment insurance
compensation.
c. Certification Regarding Debarment, Suspension, Ineligibility and Voluntary
Exclusion – Lower Tier Covered Transaction. Recipient certifies, by signing this
Agreement that neither it nor its principals is presently debarred, suspended,
proposed for debarment, declared ineligible, or voluntarily excluded from
participation in this transaction by any Federal or State department or agency.
4. Maintenance of Records. The Recipient shall maintain accurate written records, including
accounting records such as invoices, sales receipts, and proof of payment, books,
documents, data and other evidence that reflects all of Recipient’s direct and indirect
expenditures of Program Award Funds. These records must be sufficient to demonstrate
that the funds have been used in accordance with Section 601(d) of the Social Security Act.
The City may at any time review the documentation to determine the Recipient’s
conformance with the requirements of the Program, and the Recipient shall make available
to the City, upon request, all of the Recipient’s records and documents with respect to all
matters covered by this Agreement.
a. The City may require the Recipient to provide additional documentation if the
existing documentation is deemed incomplete.
b. The Recipient shall retain all records related to this Agreement for a period of six
(6) years following the receipt of Program Award Funds. These records, including
materials generated under the contract, shall be subject at all reasonable times to
inspection and review by the City, and to an audit by the Washington State
Department of Commerce, personnel duly authorized by Commerce, the Office of
the State Auditor, and federal and state officials so authorized by law, regulation or
agreement.
c. If any litigation, claim or audit is started before the expiration of the six (6) year
period provided in Section 4(b) above, the records shall be retained until all
litigation, claims, or audit findings involving the records have been resolved.
5. Kitsap Economic Development Alliance. The City is partnering with the Kitsap
Economic Development Alliance (“KEDA”) to administer this Program. Recipients may
be contacted by the KEDA regarding this Program and are encouraged to contact the
KEDA with questions about the Program.
6. No Employee Relationship. The Recipient understands and acknowledges that neither the
Recipient nor any officer, employee or agent of the Recipient shall be considered to be an
employee of the City, nor entitled to any benefits accorded City employees, by virtue of
the services provided under this Agreement. The City shall not be responsible for assuming
the duties of an employer with respect to the Recipient or any employee of the Recipient.
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[Amended] Exhibit B to the Agreement with KEDA
4
7. Indemnification. The Recipient shall indemnify and hold the City harmless against any
claim or liability of any nature in connection with or arising in any manner out of this
Agreement. In the event of any dispute between the Recipient and its employees,
subcontractors or anyone with a claim to some or all of the Recipient’s Program award
funds, the Recipient shall be responsible for resolution of any such claim and the City shall
have no responsibility or obligation in the resolution process or outcome. The Recipient
shall ensure that any sub-recipient of any Program award funds shall agree to defend and
indemnify the City to the extent and on the same terms and conditions as the Recipient.
8. Non-discrimination. The Recipient shall conduct its business and use funds in a manner
which assures fair, equal and non-discriminatory treatment of all persons, including
maintaining open hiring and employment practices, and compliance with all requirements
of applicable federal, state or local laws or regulations related to hiring and employment
practices and providing services to all persons, without discrimination as to any person’s
race, color, religion, sex, sexual orientation, disabled veteran condition, physical or mental
handicap or national origin.
9. Complete Agreement. This Agreement sets forth the complete expression of the
agreement between the Parties, and any oral representations or understandings not
incorporated herein are excluded.
10. Waiver. Any waiver by the Recipient or the City of the breach of any provision of this
Agreement by the other party will not operate, or be construed, as a waiver of any
subsequent breach by either party or prevent either party from thereafter enforcing any
such provisions.
11. Modification. This Agreement may only be amended by written agreement signed by both
Parties.
12. Severability. If any part of this Agreement is found to be in conflict with applicable laws,
such part shall be inoperative, null and void, insofar as it is in conflict with said laws, and
the remainder of the Agreement shall remain in full force and effect.
13. Notices.
A. Notices to the City of Port Orchard shall be sent to the following address:
City of Port Orchard Attn: Finance Director Port Orchard, WA B. Notices to the Recipient shall be sent to the following address:
____________________
____________________
____________________
____________________
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[Amended] Exhibit B to the Agreement with KEDA
5
14. Assignment of Contract. The Recipient shall not assign this contract without the prior
written consent of the City.
15. Venue. This Agreement shall be governed by the law of the State of Washington and
venue for any lawsuit arising out of this Agreement shall be in King County.
16. Disclaimer of Liability. Washington State Department of Commerce and the State of Washington are not liable for claims or damages arising from the Recipient’s performance of this Agreement.
IN WITNESS WHEREOF, the City and Recipient have executed this Agreement as of the
date first above written.
CITY OF PORT ORCHARD,
WASHINGTON
By:_______________________
Its: Mayor
Date:______________________
RECIPIENT
[Recipient’s Complete Legal Name]
By:________________________________
Typed/Printed Name:__________________
Its:__________________________________
Date:_______________________________
ATTEST:
Brandy Rinearson, City Clerk
Date:
APPROVED AS TO FORM:
Charlotte A. Archer, City Attorney,
Date: ________________________
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RESOLUTTON NO. 029-20
A RESOLUTION OF THE CIry OF PORT ORCHARD, WASHINGTON,
ESTABLISHING PORT ORCHARD CARES, A SMALL BUSINESS
RELIEF GRANT PROGRAM IN RESPONSE TO THE NOVEL
coRoNAVr RUS (COV| D-191.
WHEREAS, On March 27, 2020, the United States Congress adopted the Coronavirus
Aid, Relief, and Economic Security Act ('CARES Act") which, among other things, amended
Section 601(a) of the Social Security Act and established the Coronavirus Relief Fund into which
Congress appropriated S150 billion to make payments for specified uses to States and certain
local governments; and
WHEREAS, The Coronavirus Relief Fund is available to reimburse government recipients
for necessary expenditures incurred due to the COVID-19 public health emergency that were
not accounted for in the government recipient's most-recently appropriated budget and that
were incurred during the period between March L,2O2O and December 30, 2O2O; and
WHEREAS, Guidance issued by the U.S. Treasury Department indicates that necessary
expenditures incurred due to the COVID-19 public health emergency include costs incurred to
support local businesses that suffered losses due to COVID-19 business interruptions, or
incurred costs for personal protective equipment or other materials, supplies and equipment
needed to safely operate following a COVID-19-related closure; and
WHEREAS, the City Council believes a functioning local economy is criticalto protect the
health and wellbeing of Port Orchard residents, as the failure of small businesses due to the
pandemic rlryill create a serious hardship on owners and individuals employed by those
businesses, and create additional financial burdens on government services by increasing
demand for government support to individuals who are unemployed coupled with a substantial
decrease in revenue for the City due to the pandemic; and
WHEREAS, the City Council desires to establish Port Orchard CARES, a Small Business
Relief Grant Program, the focus of which is to provide short-term economic stability via
monetary grants to qualifying businesses located within City limits; and
WHEREAS, the City Council finds that this program will serve a governmental purpose by
wherein in exchange for cash allocations, qualified small businesses will be able to re-open and
provide the City's residents with jobs, services and/or goods, and public services via tax
revenue; and
WHEREAS, the City Council has directed staff to build a program and utilize general
funds for this program, and seek reimbursement from the CARES program; and
WHEREAS, the City has limited resources, including limited available personnel, to
administer the Program, and desires to partner with a qualified service provider capable of
serving as grant administrator, selected due to its unique qualifications for the performance of
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Resolution No. 029-20
Page 2 of 4
this service during this declared state of emergency; and
WHEREAS, the City has developed the grant program and eligibility requirements, based
on the requirements for use of funds established by the Washington Department of Commerce,
the administrator for the CARES Act funding allocated to the City; and
WHEREAS, the City shall allocate no more than $102,000 of CARES ACT funding for this
program, with a maximum of 52,000 allocated to a service provider for the administration of
the program and 5100,000 for the relief grants to small businesses; now, therefore,
THE CITY COUNCIL OF THE CITY OF PORT ORCHARD, WASHINGTON, HEREBY RESOLVES
AS FOLLOWS:
THAT: The City Council hereby adopts the recitals expressed above as Findings of Fact in
support of this Resolution.
THAT: The City Council hereby establishes the Port Orchard Cares, Small Business Grant
Relief Program, and allocates City general funding in the amount of 5102,000 to be
utilized for economic recovery response to the impacts resulting from the COVID-19
pandemic. The City Council specifically directs that the S10Z,OOO be disseminated
pursuant to the program criteria attached hereto as Exhibit A. Final selection of the
grant recipients shall be determined by the Mayor or designee, based on the
parameters set forth in Exhibit A. Each individual grant recipient shall be required to
execute a contract with the City memorializing the award, in a form acceptable to the
City Attorney.
THAT: The City Council directs the Mayor to adopt any necessary administrative
processes to implement this resolution and attached policy, and in compliance with the
provisions of state law. The Mayor shall report to the Council any actions taken in
accordance with this Resolution and shall do so with thirty (30) days of taking such an
action.
PASSED by the City Council of the City of Port Orchard, SIGNED by the Mayor and attested
by the Clerk in authentication of such passage this 14th day of July 2020.
ansuu, Mayor
P
c('r
r,)
R a
randy Rinearson, MMC, City Clerk
8At
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Resolution No. 029-20
Page 3 of 4
Exhibit A -
City of Port Orchard
Port Orchard Cares Small Business Relief Grant Program
Purpose
The City of Port Orchard Small Business Relief and Recovery Grant Program is intended to
ensure the economic health of the City of Port Orchard, and thereby improve the public health
and welfare for Port Orchard's residents. The grant funded allocated hereunder is designed to
help small businesses keep their doors open, protect local jobs threatened by the COVID-l9
pandemic, support community recovery, and increase the resiliency of local businesses in our
community.
Through the program, eligible small businesses operating in the City of Port Orchard have the
opportunity to apply for cash assistance to help with rent and to mitigate the impacts of
revenue reductions associated with COVID-L9. The City anticipates awarding eligible small
businesses with a one-time cash grant of up to 55,000 based on justifiable need and business
resiliency.
Administration of Program
The City shall supply the cash grants to qualifying small businesses, consistent with the criteria
herein. Due to the City's limited personnel, to effectuate this policy, the City may enter into a
services agreement with a qualified non-profit organization to facilitate the timely and effective
dissemination of these funds to businesses.
Criteria for Grant Funding:
To be eligible for grant funding, a small business must meet the following criteria:
o Must have a Port Orchard business license
o Been in business for at least one year prior to the date of the application
o Have a physical location in the City of Port Orchard on or before March t,2O2O
o Have no more than 15 full-time equivalent employees.
o Engage in a type of business eligible to receive funding by the US Small Business
Administration: https://www.sba.-sov/partners/lenders/7a-loan-program/terms-conditions-
el i gibi l it_y#section -header- I 5
o Ability to demonstrate loss of revenue due to COVID-19 (Priority given to businesses
that were required to close due to the Governor's order)
o Your business has reopened prior to the date of the application
o lf you answer yes to all of the above your business may qualify
Permitted Use of Grant Fundine:
. Payment and/or reimbursement of business leasehold rents. Up to 6 months of rent
from Aprilthru September 2020 up to 55,000
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Resolution No. 029-20
Page 4 of 4
Not Permitted Uses for Grant Funding:
o Wages, bonuses or draws by you as the owner. (These expenses were eligible under the
PPP loans)
o Operating expenses other than rent
o Businesses that received previous funding under the Working Washington Small
Business Emergency Grant program or other local grants
o Not eligible for months that landlord provided rent relief
o Mortgage payments on owner occupied buildings
o Landlord must not have any ownership in business
o No homebased businesses
Required Documentation From Applicants:
o Application - As administered by the non-profit, all businesses seeking funding shall
submit an application demonstrating that the business meets the above criteria.
o Evidence of Lease and/or Declaration from Landlord evidencing lease
o Documentation related to real estate holding company may be required
Awards will be made to qualified small businesses applicants, through the execution of an
Agreement between the grant recipient and the City. Awarded small businesses may be,
through the Agreement, required to report on expenditures and outcomes through a one-time
end of program report.
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City of Port Orchard
216 Prospect Street, Port Orchard, WA 98366
(360) 876-4407 • FAX (360) 895-9029
Agenda Staff Report
Agenda Item No.: Business Item 7F Meeting Date:
October 13, 2020
Subject: Adoption of a Resolution Approving a Prepared by: Mark Dorsey, P.E.
Contract with Rice Fergus Miller, Inc. for Public Works Director
the 2020-2021 Schematic Design (30%) Atty Routing No: N/A
City Hall Improvement Project and Atty Review Date: N/A
Documenting Procurement Procedures
Summary: On January 31 and February 7, 2020, the City’s Public Works Department published a Request
for Qualifications (RFQ) for the 2020-2021 Ad Ready (100% PS&E) City Hall Improvement Project, which
included the Schematic (30%) and Design Development (60%) phases. By the February 28, 2020
deadline, five (5) Statements of Qualification (SOQ) were received. On March 10, 2020, upon completion
of the Mandatory Bidder Responsibility Checklist and scoring/ranking of the five (5) SOQ’s received, City
Staff selected the top three (3) qualified firms for interview. On July 22 and July 23, 2020, after a COVID
19-related hiatus, City Staff interviewed, score and then selected Rice Fergus Miller, Inc. for the Project.
Public Works Staff then met with Rice Fergus Miller, Inc. to discuss, clarify and develop the Project
Understanding, and on September 18, 2020, the City received a defined Scope of Work, Budget and
Project Timeline for the Schematic (30%) Design Phase of the Project, in an amount not to exceed
$104,000.00, plus reimbursable expenses (estimated at $2,500.)
Recommendation: Staff recommends adoption of Resolution No. 041-20, thereby approving Contract
No. C075-20 with Rice Fergus Miller, Inc. for the 2020-2021 Schematic (30%) City Hall Improvement
Project in the amount of $106,500.00 and documenting the Professional Services procurement
procedures.
Relationship to Comprehensive Plan: Chapter 9 – Capital Facilities
Motion for Consideration: I move to adopt Resolution No. 041-20, thereby approving Contract No.
C075-20 with Rice Fergus Miller, Inc. for the 2020-2021 Schematic (30%) City Hall Improvement Project
in the amount of $106,500.00 and documenting the Professional Services procurement procedures.
Alternatives: Do not approve.
Fiscal Impact: Funding provided ($300K) within the current and future 2021-2022 Biennial Budget.
Attachments: Resolution No. 041-20, Contract No. C075-20, and RFM, Inc. Proposal (dated
9/18/2020).
Page 165 of 189
RESOLUTION NO. ____
A RESOLUTION OF THE CITY OF PORT ORCHARD, WASHINGTON, AUTHORIZING
THE MAYOR TO EXECUTE CONTRACT NO. C075-20 WITH RICE FERGUS MILLER,
INC. FOR THE 2020 – 2021 SCHEMATIC DESIGN (30%) CITY HALL IMPROVEMENT
PROJECT AND DOCUMENTING PROFESSIONAL SERVICES PROCUREMENT
PROCEDURES.
WHEREAS, on January 31 and February 7, 2020, the City of Port Orchard Public Works
Department published a Request for Qualifications (RFQ) for the 2020-2021 Ad Ready (100%
PS&E) City Hall Improvement Project, including Schematic (30%) and Design Development
(60%); and
WHEREAS, by the February 28, 2020 deadline, the City’s Public Works Department
received five (5) Statements of Qualification (SOQ) from qualified firms; and
WHEREAS, on March 10, 2020, City Staff completed the Mandatory Bidder
Responsibility Checklist for the five (5) qualified firms and upon scoring/ranking of the SOQ’s
received, the City’s Public Works Department provided interview notifications to the top three
(3) qualified firms; and
WHEREAS, on July 22 and July 23, 2020, after a COVID19-related delay, City Staff
interviewed the three (3) qualified firms, and upon interview scoring/ranking, the City’s Public
Works Department selected Rice Fergus Miller, Inc. for the Project award and subsequently met
to discuss, clarify and develop the Project Understanding (Scope, Budget and Timeline); and
WHEREAS, on September 18, 2020, Rice Fergus Miller, Inc. provided the City’s Public
Works Department with a viable Proposal; and
WHEREAS, the Port Orchard City Council, at the 2015 recommendation of the State
Auditor’s Office, wishes to document their consultant selection process as described above for
this particular contract by Resolution; now, therefore,
THE CITY COUNCIL OF THE CITY OF PORT ORCHARD, WASHINGTON, HEREBY RESOLVES
AS FOLLOWS:
THAT: It is the intent of the Port Orchard City Council that the recitals set forth above
are hereby adopted and incorporated as findings in support of this Resolution.
THAT: The Port Orchard City Council approves of and authorizes the Mayor to execute
Contract No. C075-20 with Rice Fergus Miller, Inc. for the 2020-2021 Schematic Design
(30%) City Hall Improvement Project.
THAT: This Resolution shall be take full force and effect upon passage and signatures
hereon.
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Resolution No. ___
Page 2 of 2
PASSED by the City Council of the City of Port Orchard, SIGNED by the Mayor and attested
by the Clerk in authentication of such passage this 13th day of October 2020.
Robert Putaansuu, Mayor
ATTEST:
Brandy Rinearson, MMC, City Clerk
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360-792-1385
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Steve Rice
Principal
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City of Port Orchard
Council Meeting Minutes
Regular Meeting of September 22, 2020
1. CALL TO ORDER AND ROLL CALL
Mayor Putaansuu called the meeting to order at 6:30 p.m.
Roll call was taken by the City Clerk as follows:
Councilmember Ashby Present via Remote Access
Councilmember Chang Present via Remote Access
Councilmember Clauson Present via Remote Access
Councilmember Cucciardi Present via Remote Access
Councilmember Diener Present via Remote Access
Councilmember Lucarelli Present via Remote Access
Mayor Pro-Tem Rosapepe Absent
Mayor Putaansuu Present via Remote Access
Staff present via Remote Access: Public Works Director Dorsey, Utility Manager J. Brown, Finance
Director Crocker, Community Development Director Bond, Code Enforcement Price, Operations
Manager Lang, City Attorney Archer, Police Chief M. Brown, and City Clerk Rinearson.
Mayor Putaansuu stated pursuant to the Governor’s Stay at Home, Stay Safe order, the City Council
will be conducting the meeting via Zoom this evening.
A. PLEDGE OF ALLEGIANCE
Mayor Putaansuu led the audience and Council in the Pledge of Allegiance.
2. APPROVAL OF AGENDA
MOTION: By Councilmember Clauson, seconded by Councilmember Diener, to include a second
executive session; also under Consent Agenda that we include excusing Councilmember Rosapepe;
and remove agenda items 9 Reports of Council Committees, 10 Report of Mayor, and 11 Report of
Department Heads.
The motion carried.
3. CITIZENS COMMENTS
There were no citizen comments.
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Minutes of September 22, 2020
Page 2 of 6
4. CONSENT AGENDA
A. Approval of Voucher Nos. 80412 through 80501 and 80508 through 80538, including bank drafts
in the amount of $293,366.58 and EFT’s in the amount of $8,613.24 totaling $301,979.82.
B. Approval of Payroll Check Nos. 80502 through 80507 including bank drafts and EFT’s in the
amount of $236,493.05; and Direct Deposits in the amount of $179,211.54 totaling $415,704.59.
C. NEW: Excusal of Councilmember Rosapepe
MOTION: By Councilmember Clauson, seconded by Councilmember Lucarelli, to approve the consent
agenda as amended.
The motion carried.
5. PRESENTATION
A. Mrs. Washington 2020
Valerie St. John, Mrs. Washington American 2020, introduced herself and spoke about the Mrs.
Washington program, her platform and community service.
6. PUBLIC HEARING
A. Adoption of an Ordinance Amending the Sewer Capital Facilities Charge and Reinstating a
Consumer Price Index Annual Adjustment
Mayor Putaansuu opened the public hearing, and there being no testimony, closed the public
hearing at 6:57 p.m.
At 6:59 p.m., Mayor Putaansuu recessed the meeting for a 15-minute executive session pursuant to
RCW 42.30.110(1)(i), to discuss legal risks of a proposed action or current practice with legal counsel,
and to discuss litigation that the agency reasonably believes may be commenced by or against the
agency. City Attorney Archer Community Development Director Bond were invited to attend, and
Mayor Putaansuu announced action will follow.
At 7:16 p.m., Mayor Putaansuu reconvened the meeting back into session.
7. BUSINESS ITEMS
A. Adoption of an Ordinance Amending Port Orchard Municipal Code Section 13.04, Increasing
the Sewer Capital Facilities Charge and Reinstating an Annual Consumer Price Index
Adjustment
MOTION: By Councilmember Lucarelli, seconded by Councilmember Diener, to adopt an ordinance
amending Chapter POMC 13.04, increasing the Sewer Capital Facilities Charge and reinstating an
annual CPI Adjustment.
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Minutes of September 22, 2020
Page 3 of 6
The motion carried.
(Ordinance No. 027-20)
B. Adoption of an Ordinance Adopting the Ruby Creek Neighborhood Subarea Plan
Councilmember Clauson noted that due to his employer Kitsap Transit is intending to develop
property in that area he will recuse himself from this discussion.
At 7:21 p.m., Councilmember Clauson recused himself from the meeting.
Development Director Bond explained a couple minor discrepancies in the document and noted they
will be corrected.
MOTION: By Councilmember Diener, seconded by Councilmember Ashby, to adopt an ordinance
adopting the Ruby Creek Neighborhood Subarea Plan as Appendix C of the City’s Comprehensive
Plan, and adopting corresponding amendments to the City’s Zoning Map and to Chapters 20.31,
20.38 and 20.127 POMC.
The motion carried.
(Ordinance No. 028-20)
Councilmember Clauson returned to the meeting at 7:30 p.m.
C. Adoption of a Resolution Repealing Resolution No. 056-17 and Adopting Updated Procurement
Policies and Procedures
MOTION: By Councilmember Cucciardi, seconded by Councilmember Clauson, to adopt a resolution
repealing Resolution No. 056-17 and adopting the revised Procurement Policies and Procedures, as
presented.
The motion carried.
(Resolution No. 042-20)
D. Adoption of a Resolution Approving a Contract with Aqua Tech, LLC for the 2020-2021
McCormick Woods STEP System Retrofit
MOTION: By Councilmember Clauson, seconded by Councilmember Diener, to adopt Resolution No.
039-20 authorizing the Mayor to execute Contract No. C059-20 with Aqua Tech LLC for the 2020-
2021 McCormick Woods STEP System Retrofit Project in the amount of $635,698.27, and
documenting the Formal Competitive Bid Procurement Procedures.
The motion carried.
(Resolution No. 039-20 and Contract No. 059-20)
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Minutes of September 22, 2020
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E. Adoption of a Resolution Approving a Contract with HDR Engineering, Inc. to Conduct a Study
of Consolidating the McCormick Woods and Port Orchard Water Systems
MOTION: By Councilmember Lucarelli, seconded by Councilmember Clauson, to adopt a resolution
authorizing the Mayor to execute a contract with HDR Engineering, Inc. for the McCormick Woods
and City of Port Orchard Water System Consolidation Study, and documenting the Professional
Services procurement procedures.
City Attorney Archer pointed out section E, Allocation of Risk, which was added at the request of the
engineering firm.
The motion carried.
(Resolution No. 043-20 and Contract No. 076-20)
F. Adoption of a Resolution Authorizing Mayor or Designee to Initiate a Legal Action to Seek
Abatement of Code Violations Occurring at SE Crawford Road
MOTION: By Councilmember Chang, seconded by Councilmember Diener, to adopt a resolution
authorizing the Mayor or designee to commence legal action against the owners of the vehicles and
real property located at SE Crawford Road for all claims and damages appropriate to remediate the
public nuisance conditions and code violations existing on said property.
The motion carried.
(Resolution No. 044-20)
G. Adoption of a Resolution of a Resolution Authorizing Mayor or Designee to Initiate a Legal
Action to Seek Abatement of Code Violations Occurring at 1743 SE Crawford Road
MOTION: By Councilmember Ashby, seconded by Councilmember Clauson, to authorizing the Mayor
or designee to commence legal action against the owners of real property located at 1743 SE
Crawford Road for all claims and damages appropriate to remediate the public nuisance conditions
and code violations existing on said property.
The motion carried.
(Resolution No. 045-20)
H. Approve and Ratify the Mayor’s Second Extension of Proclamation of Local Emergency Pursuant
to RCW 38.52.070
MOTION: By Councilmember Cucciardi, seconded by Councilmember Lucarelli, to approve of and
ratify the Mayor’s Second Extension of the Proclamation of Local Emergency, dated the 13th of
September 2020, pursuant to Port Orchard Municipal Code 2.80.210 and RCW 38.52.070.
The motion carried.
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Minutes of September 22, 2020
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I. Approval of the Public Participation Program for the South Kitsap Community Events Center
Councilmember Clauson pointed out the document states notices will be published by the Port
Orchard Independent, but Kitsap Sun is our official paper of record.
Councilmember Lucarelli would like to see the South Kitsap Rotary listed.
MOTION: By Councilmember Cucciardi, seconded by Councilmember Clauson, to approve the Public
Participation Program for the South Kitsap Community Events Center and include the amendments
as discussed.
Councilmember Cucciardi said the document states Bremerton Conference Center, but it is the Kitsap
Conference Center.
The motion carried.
J. Approval of an Agreement with STANLEY Convergent Security Solutions, Inc. for the Public
Works Ancillary Facilities Security Improvements
MOTION: By Councilmember Clauson, seconded by Councilmember Cucciardi, to authorize the
Mayor to enter into an Agreement with STANLEY Convergent Security Solutions, Inc. for the Ancillary
Facilities Security Improvements, Option 2 – Phase 1 Public Works Shop in the amount of $26,487,
plus Phase 2 Water & Sanitary Sewer Facilities, in the additional amount of $27,090.86 (applicable
tax included) for a total of $53,577.86.
The motion carried.
(Contract No. 034-20)
K. Approval of Amendment No. 2 to Contract No. 023-19 with Transportation Solutions, Inc.
Consultants for the Traffic Impact Fee Study Update
MOTION: By Councilmember Ashby, seconded by Councilmember Diener, to authorize the Mayor to
execute Amendment No. 2 of Contract No. C023-19 with TSI Consulting for the for the Traffic Impact
Fee Study, in an amount not to exceed $7,000 (for a total amended contract amount of $32,000).
The motion carried
L. Approval of the September 8, 2020, Council Meeting Minutes
MOTION: By Councilmember Clauson, seconded by Councilmember Cucciardi, to approve the
minutes as published.
The motion moved. Councilmember Lucarelli abstained.
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Minutes of September 22, 2020
Page 6 of 6
8. DISCUSSION ITEMS (No Action to be Taken)
A. Capital Budget and Biennial Budget
Finance Director Crocker provided a presentation of the Capital Projects Preliminary 2021-2022
Budget which included construction funds such as street construction, water construction, storm
drainage construction, and sewer construction.
Discussion was held regarding the presentation and the next steps.
Council Direction: No direction was given to staff.
B. Reservoir Cleaning Video
Operations Manager Lang noted, the City has not yet received the video so this will be placed on a
future agenda.
Council Direction: No direction was given.
9. CITIZEN COMMENTS
There were no citizen comments.
10. EXECUTIVE SESSION
At 8:45 p.m., Mayor Putaansuu recessed the meeting for a 30-minute executive session to discuss
legal risks of a proposed action or current practice with legal counsel pursuant to RCW
42.30.110(1)(i). City Attorney Archer, HR Coordinator Lund and Finance Director Crocker were
invited to attend, and Mayor Putaansuu announced no action will follow.
At 9:15 p.m., Mayor Putaansuu extended the executive session for an additional 54-minutes.
At 10:09 p.m., Mayor Putaansuu reconvened the meeting back into session.
11. ADJOURNMENT
The meeting adjourned at 10:09 p.m. No other action was taken. Audio/Visual was successful.
Brandy Rinearson, MMC, City Clerk Robert Putaansuu, Mayor
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