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11/10/2020 - Regular - PacketCity of Port Orchard Council Meeting Agenda November 10, 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/83587072487 Zoom Meeting ID: 835 8707 2487 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 a Resolution Approving Grant No. S-W-153(001)-1 with the Washington State Transportation Improvement Board for the 2020- 2021 Relight Washington Grant Program (Dorsey) Page 3 D.Approval of Change Order No. 1 to Contract No. 071-20 with Express Septic Tank Cleaning for the Sidney Glen Elementary School Annual Pumping (Dorsey) Page 11 E.Approval of the October 20, 2020, Council Work Study Meeting Minutes Page 14 5.PRESENTATION 6.PUBLIC HEARING 7.BUSINESS ITEMS A.Adoption of a Resolution Approving a Contract with Charon Drilling, Inc. for the 2020-2021 Well #11 Modification and Testing and 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. November 10, 2020, Meeting Agenda Page 2 of 2 Decommissioning of Wells #1 and #2 and Documenting Procurement Procedures (Dorsey) Page 17 B. Adoption of a Resolution Approving an Agreement with the McCormick Meadows HOA Concerning Landis Court SW (Bond) Page 35 C. Adoption of a Resolution Repealing Resolution No. 022-12 and Adopting Updated Financial Policies (Crocker) Page 62 D. Adoption of a Resolution Accepting the Lodging Tax Advisory Committee’s Recommendation for 2021 Funding Allocation (Rinearson) Page 87 E. Approval of a Contract with South Kitsap Fire and Rescue to Share Funding for the Community Health Navigator Position (M. Brown) Page 90 F. Approval of the October 27, 2020, Council Meeting Minutes Page 97 8. DISCUSSION ITEMS (No Action to be Taken) A. Use of the Van Zee Park by a Recreational Sports Organization (Rinearson) Page 102 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 will hold an executive session regarding pending and potential litigation. The session duration will be announced prior to the executive session. 14. ADJOURNMENT COMMITTEE MEETINGS Date & Time Location Finance November 23, 2020; 5:00pm Remote Access Economic Development and Tourism December 14, 2020; 9:30am – 2nd Monday of each month Remote Access Utilities November 17, 2020; 5:00pm-3rd Tuesday of each month Remote Access Sewer Advisory November 18, 2020; 6:30pm Remote Access Land Use December 9, 2020; 4:30pm Remote Access Transportation November 24, 2020; 5:00pm – 4th Tuesday of each month Remote Access Lodging Tax Advisory TBD Remote Access Festival of Chimes & Lights November 16, 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: November 10, 2020 Subject: Adoption of a Resolution Approving Prepared by: Mark Dorsey, P.E. Grant No. S-W-153(001)-1 with the Public Works Director Washington State Transportation Atty Routing No: N/A Improvement Board for the 2020-2021 Atty Review Date: N/A Relight Washington Grant Program Summary: The City of Port Orchard, being an eligible no-match required grant recipient for the Washington State Transportation Improvements Board’s (TIB) Relight Washington Grant Program, has been awarded an initial $200,000 grant for the conversion of at least 499 Schedule 53 Cobra Head (HPS) to LED streetlight conversions. The Agreement requires that the Work be provided by Puget Sound Energy (PSE) and paid for by the City, with subsequent reimbursement by TIB. Additional grant funding to complete the entirety of the Schedule 53 Inventory is available upon request. Relationship to Comprehensive Plan: Chapter 7.3, Non-City Managed Utilities Recommendation: Staff recommends adoption of Resolution No. 050-20, thereby approving Contract No. C082-12 with the Washington State Transportation Improvement Board (TIB) for acceptance of a Relight Washington Grant Program award of $200,000 for the conversion of at least 499 Schedule 53 Cobra Head (HPS) to LED streetlight conversions. Motion for Consideration: I move to adopt Resolution No. 050-20 and authorize the Mayor Pro-Tem to execute Contract No. C082-12 with the Washington State Transportation Improvement Board (TIB) for acceptance of a Relight Washington Grant Program award of $200,000 for the conversion of at least 499 Schedule 53 Cobra Head (HPS) to LED streetlight conversions. Alternatives: Do not accept. Fiscal Impact: Reimbursement grant award of $200,000, with cash-flow management required. Attachments: Resolution and TIB Relight Washington Grant Agreement No. S-W-153(001)-1. Page 3 of 103 RESOLUTION NO. 050-20 A RESOLUTION OF THE CITY OF PORT ORCHARD, WASHINGTON, AUTHORIZING THE MAYOR TO EXECUTE CONTRACT NO. C082-20 WITH THE WASHINGTON STATE TRANSPORTATION IMPROVEMENT BOARD (TIB), THEREBY ACCEPTING A GRANT FOR THE 2020-2021 RELIGHT WASHINGTON PROGRAM. WHEREAS, in 2015 the Washington State Transportation Improvement Board (TIB), in partnership with Puget Sound Energy (PSE) and Avista Utilities, introduced the no-match required Relight Washington Grant Program to move small cities to the front of the line in cost savings LED streetlight conversions pursuant to RCW 47.26 and chapter 479 WAC; and WHEREAS, the City of Port Orchard is eligible for said grant funding, being a small city with an assessed valuation under $2 billion; and WHEREAS, TIB’s Relight Washington Grant Agreement provides for reimbursement of PSE’s costs in the conversion of streetlights under the Schedule 53 Cobra Head (HPS) Street Lights to LED Conversion Program; and WHEREAS, TIB has initially established a grant funding amount of $200,000 within the Relight Washington Grant Agreement that will provide for at least 499 streetlight conversions, with additional grant funding available upon request to convert the entirety of the Schedule 53 inventory of streetlights; and WHEREAS, the City, as the recipient of the grant, agrees to provide all documentation required for both the reimbursement of PSE’s conversion Work and Project Closeout and to complete the Project Closeout within a two-year maximum term; now, therefore, THE CITY COUNCIL OF THE CITY OF PORT ORCHARD, WASHINGTON, HEREBY RESOLVES AS FOLLOWS: THAT: It is the intent of the Port Orchard City Council that the recitals set forth above are hereby adopted and incorporated as findings in support of this Resolution. THAT: The City Council authorizes the Mayor Pro-Tem to execute Contract No. 082-20 with the Washington State Transportation Improvement Board, thereby accepting a Grant for the 2020-2021 Relight Washington Program. THAT: This Resolution shall be take full force and effect upon passage and signatures hereon. Page 4 of 103 Resolution No. 050-20 Page 2 of 2 PASSED by the City Council of the City of Port Orchard, SIGNED by the Mayor Pro-Tem and attested by the City Clerk in authentication of such passage on this 10th day of November 2020. ____________________________________ Jay Rosapepe, Mayor Pro-Tem ATTEST: ____________________________ Brandy Rinearson, MMC, City Clerk Page 5 of 103 Washington State Transportation Improvement Board S-W-153(001)-1 Relight Washington Grant Agreement Fuel Tax Agreement Page 1 of 5 November 2012 City of Port Orchard S-W-153(001)-1 LED Streetlight Conversion STATE OF WASHINGTON TRANSPORTATION IMPROVEMENT BOARD AND City of Port Orchard GRANT AGREEMENT THIS GRANT AGREEMENT (“Agreement”) is made and entered into between the WASHINGTON STATE TRANSPORTATION IMPROVEMENT BOARD (“TIB”) and the City of Port Orchard, a Washington state municipal corporation (“RECIPIENT”). WHEREAS, the TIB has developed a grant program, Relight Washington, to provide for the conversion of standard streetlights to LED lighting (“Project”) for eligible cities and towns to reduce municipal electrical costs, and WHEREAS, the above-identified city/town is eligible to receive a Project grant and attests that it has the legal authority to receive such grant and to perform the Project pursuant to the terms of this grant, NOW, THEREFORE, pursuant to chapter 47.26 RCW and chapter 479 WAC, the above recitals that are incorporated herein as if fully set forth below, and in consideration of the terms, conditions, and performances contained herein, and the attached Exhibits, if any, which are made a part hereof, IT IS MUTUALLY AGREED AS FOLLOWS: 1. GRANT TIB agrees to grant funds in the amount of Two Hundred Thousand AND NO/100 dollars ($200,000) for the Project pursuant to terms contained herein, and the RECIPIENT agrees to accept such grant funds and agrees to perform and be subject to the terms and conditions of this Agreement. 2. USE OF TIB GRANT FUNDS TIB grant funds may come from Motor Vehicle Fuel Tax revenue. Any use of these funds for anything other than for highway or street Project improvements is prohibited and shall subject the RECIPIENT to the terms, conditions and remedies set forth in Section 9. 3. PROJECT AND BUDGET The Project shall provide for the conversion of identified streetlights within RECIPIENT’s city limits. The RECIPIENT agrees to enter into an agreement with or otherwise provide for a service provider to perform the actual conversion work. The RECIPIENT further agrees that it shall be solely responsible for and shall pay its service provider’s invoices for costs of the work. The Project and Budget may be amended by the Parties, pursuant to Section 7. Page 6 of 103 Washington State Transportation Improvement Board S-W-153(001)-1 Relight Washington Grant Agreement Fuel Tax Agreement Page 2 of 5 November 2012 4. PROJECT DOCUMENTATION The RECIPIENT agrees to and shall make reasonable progress and submit timely Project documentation, as applicable, throughout the term of this Agreement and Project. Required documents include, but are not limited to the following: a) Documentation to support all costs expended for the Project. b) Project Closeout Form. 5. BILLING AND PAYMENT The RECIPIENT may submit progress payment requests to the TIB as necessary. If billable amounts are greater than $50,000, RECIPIENT shall submit requests for payments on a quarterly basis. If progress payments are not regularly requested, reimbursements may be delayed or scheduled in a to be determined payment plan. 6. RECORDS MAINTENANCE 6.1 The RECIPIENT shall maintain books, records, documents, data and other evidence relating to this Agreement and performance of the Project work described herein, including but not limited to accounting procedures and practices which sufficiently and properly reflect all direct and indirect costs of any nature expended in the performance of this Agreement. RECIPIENT shall retain such records for a period of six years following the date of final payment. At no cost to TIB, these records shall be provided when requested, including materials generated under the Agreement, and shall be subject at all reasonable times to inspection, review or audit by TIB personnel, the Office of the State Auditor, and federal and state officials so authorized by law, regulation or agreement. 6.2 If any litigation, claim or audit is 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. 7. INCREASE OR DECREASE IN TIB GRANT FUNDS RECIPIENT may request an increase in the TIB grant funds for the Project. Requests must be made in writing and will be considered by TIB and awarded at the sole discretion of TIB. An increase in grant funds shall be by amendment pursuant to Section 14. If an increase is denied, the recipient shall be solely liable for costs incurred in excess of the Agreement grant amount. 8. TERM OF AGREEMENT This Agreement shall be effective upon execution by the Parties and shall continue through closeout of the grant amount, or modification thereof, or unless terminated as provided herein. In no event shall the Agreement term exceed two years, unless extended by Agreement amendment pursuant to Section 14. 9. DEFAULT AND TERMINATION Page 7 of 103 Washington State Transportation Improvement Board S-W-153(001)-1 Relight Washington Grant Agreement Fuel Tax Agreement Page 3 of 5 November 2012 9.1 NON-COMPLIANCE a) In the event TIB determines, in its sole discretion, the RECIPIENT has failed to comply with the terms and conditions of this Agreement, TIB shall notify the RECIPIENT, in writing, of the non-compliance. b) RECIPIENT shall provide a written response within ten (10) business days of receipt of TIB’s notice of non-compliance, which shall include either a detailed plan to correct the non-compliance, a request to amend the Project, or a denial accompanied by supporting details. An agreement to amend the Project must be pursuant to Section14. c) RECIPIENT shall have thirty (30) days in which to make reasonable progress toward compliance pursuant to its plan to correct or implement an amendment to the Project. d) Should RECIPIENT dispute non-compliance, TIB will investigate the dispute and may withhold reimbursement payments or prohibit the RECIPIENT from incurring additional reimbursable costs during the investigation. 9.2 DEFAULT RECIPIENT may be considered in default if TIB determines, in its sole discretion, that: a) RECIPIENT is not making reasonable progress toward correction and compliance. b) TIB denies the RECIPIENT’s request to amend the Project. c) After investigation, TIB confirms RECIPIENT’S non-compliance. TIB reserves the right to order RECIPIENT to immediately stop work on the Project and TIB may stop Project progress payments until the requested corrections have been made or if the Agreement is terminated. 9.3 TERMINATION a) In the event of default as determined pursuant to Section 9.2, TIB shall serve RECIPIENT with a written notice of termination of this Agreement, which may be served in person, by email or by certified letter. Upon service of notice of termination, the RECIPIENT shall immediately stop work and/or take such actions necessary as may be directed by TIB. b) In the event of default and/or termination, the RECIPIENT may be liable for damages as authorized by law including, but not limited to, repayment of grant funds. c) The rights and remedies of TIB provided in this Agreement are not exclusive and are in addition to any other rights and remedies provided by law. 9.4 TERMINATION OR SUSPENSION FOR NECESSITY TIB may, with ten (10) days written notice, terminate or suspend this Agreement, in whole or in part, because funds are no longer available for the purpose of meeting TIB’s obligations. If this Agreement is so terminated, TIB shall be liable only for payment required under this Agreement for Project work performed or costs incurred prior to the effective date of termination. Page 8 of 103 Washington State Transportation Improvement Board S-W-153(001)-1 Relight Washington Grant Agreement Fuel Tax Agreement Page 4 of 5 November 2012 10. DISPUTE RESOLUTION a) The Parties shall make good faith efforts to quickly and collaboratively resolve any dispute arising under or in connection with this Agreement. The dispute resolution process outlined in this Section applies to disputes arising under or in connection with the terms of this Agreement. b) Informal Resolution. The Parties shall use their best efforts to resolve disputes promptly and at the lowest organizational level. c) In the event that the Parties are unable to resolve the dispute, the Parties shall submit the matter to non-binding mediation facilitated by a mutually agreed upon mediator. The Parties shall share equally in the cost of the mediator. d) Each Party agrees to participate to the fullest extent possible in resolving the dispute in order to avoid delays or additional incurred cost to the Project. e) The Parties agree that they shall have no right to seek relief in a court of law in accordance with Section 11 until and unless the Dispute Resolution process has been exhausted. 11. GOVERNANCE, VENUE, AND ATTORNEYS FEES This Agreement shall be construed and interpreted in accordance with the laws of the state of Washington and venue of any action brought hereunder shall be in the Superior Court for Thurston County. The Parties agree that each Party shall be responsible for its own attorneys’ fees and costs. 12. INDEMNIFICATION, HOLD HARMLESS, AND WAIVER 12.1 Each Party, shall protect, defend, indemnify, and save harmless the other Party, its officers, officials, employees, and authorized agents, while acting within the scope of their employment as such, from any and all costs, claims, judgments, and/or awards of damages (both to persons and/or property), arising out of, or in any way resulting from, a Party’s own negligent acts or omissions which may arise in connection with its performance under this Agreement. No Party will be required to indemnify, defend, or save harmless the other Party if the claim, suit, or action for injuries, death, or damages (both to persons and/or property) is caused by the sole negligence of the other Party. Where such claims, suits, or actions result from the concurrent negligence of the Parties, the indemnity provisions provided herein shall be valid and enforceable only to the extent of a Party’s own negligence. 12.2 Each Party agrees that its obligations under this section extends to any claim, demand and/or cause of action brought by, or on behalf of, any of its officers, officials, employees or authorized agents. For this purpose, each Party, by mutual negotiation, hereby waives, with respect to the other Party only, any immunity that would otherwise be available to it against such claims under the Industrial Insurance provision of Title 51 RCW. 12.3 The obligations of this indemnification and waiver Section shall survive termination of this Agreement. 13. ASSIGNMENT Page 9 of 103 Washington State Transportation Improvement Board S-W-153(001)-1 Relight Washington Grant Agreement Fuel Tax Agreement Page 5 of 5 November 2012 The RECIPIENT shall not assign or transfer its rights, benefits, or obligations under this Agreement without the prior written consent of TIB. The RECIPIENT is deemed to consent to assignment of this Agreement by TIB to a successor entity. Such consent shall not constitute a waiver of the RECIPIENT’s other rights under this Agreement. 14. AMENDMENTS This Agreement may be amended by mutual agreement of the Parties. Such amendments shall not be binding unless they are in writing and signed by persons authorized to bind each of the Parties. 15. INDEPENDENT CAPACITY The RECIPIENT shall be deemed an independent contractor for all purposes and the employees of the RECIPIENT or any of its contractors, subcontractors, and employees thereof shall not in any manner be deemed employees of TIB. 16. ENTIRE AGREEMENT This Agreement, together with the Exhibits, if any, the provisions of chapter 47.26 RCW, chapter 479 WAC, and TIB Policies, constitute the entire Agreement between the Parties and supersedes all previous written or oral agreements between the Parties. RECIPIENT Transportation Improvement Board Chief Executive Officer Date Executive Director Date Print Name Print Name Approved as to Form By: _____SIGNATURE ON FILE____________ ANN E. SALAY Senior Assistant Attorney General NOTE: Any changes to the terms of this Agreement shall require further approval of the Office of the Attorney General Page 10 of 103 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: November 10, 2020 Subject Approval of Change Order No. 1 to Contract No. Prepared by: Mark Dorsey, P.E. 071-20 with Express Septic Tank Cleaning for Public Works Director the Sidney Glen Elementary School Annual Atty Routing No.: N/A Pumping Atty Review Date: N/A Summary: On August 27th, 2020, the Public Works Director approved Contract No. C071-20 with Express Septic Tank Cleaning for the Sidney Glen Elementary School Annual Pumping in the amount of $2,570.22. Estimated amount of sewerage to be hauled to an off-site facility was based on previous years totals and was subsequently quoted at 2,000 gallons. The 6,466-gallon septic tank was thoroughly cleaned resulting in a haul away total of 3,500 gallons this year. Recommendation: Staff recommends that the City Council authorize the Mayor Pro-Tem to execute Change Order No. 1 to Contract No. C071-20 with Express Septic Tank Cleaning in the amount of $741.20, thereby bringing the Total Contract value to $3,311.42. Relationship to Comprehensive Plan: Chapter 7 - Utilities Motion for Consideration: I move to authorize the Mayor Pro-Tem to execute Change Order No. 1 to Contract No. C071-20 with Express Septic Tank cleaning in the amount of $741.20, thereby bringing the Total Contract value to $3,311.42. Fiscal Impact: The 2019/2020 budget allocated $10,000 for this activity (431.5.535.30.40). Alternatives: None. Attachments: CO #1 to Small Works Contract No. C071-20. Page 11 of 103 CITY OF PORT ORCHARD Authorization for Change Order No. 1 Date: 10/2 7/2020 Project: Sidney Glen Elementary School Annual Pumping Contractor: Express Septic Tank Cleaning PO Box 1938 Port Orchard, WA 98366 Contract / Job # C071-20 ------------ This Change Order authorizes the additional offsite removal of 1500 gallons of sewerage from the Sidney Glen Elementary Annual Pumping contract. Contracted amount of 2000 gallons was an estimated amount based on previous years invoiced totals. Total removal for this year was 3500 gallons. Contract History Amount Sales Tax Total Date Aoovd by Original Contract $2,358.00 $212.22 $2,570.22 27-Aug-20 PW DIRECTOR Change Order 1 $680.08 $61.12 $741.20 10-Nov-20 COUNCIL Total Contract $3,038.08 $273.34 $3,311.42 I have reviewed the Change Order information above and certify that to the best of my knowledge descriptions and costs are true and accurate. Contractor Approval Signature Delpha Oxier Vice President Printed Name & Title Change Orders that do not exceed 10%, with a maximum of Public Wor �ctor/Cijgifieer V MARK R. DORSEY, P.E. Printed Name $50,000, of either legally authorized budget limit or contract Approved: amount established by City Council can be approved by the Public Works Director. Change Orders that do not exceed 10%, with a maximum of Attest: $100,000, of either legally authorized budget limit or contract amount established by City Council are to be approved by the Mayor. Change Orders over $100,000 or exceed a total of 10% require Council Action. Page 1 Mayor Pro-Tem City Clerk Council Approval Date Page 12 of 103 Page 13 of 103 City of Port Orchard Council Meeting Minutes Work Study Session Meeting of October 20, 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 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, Police Chief Brown, Finance Director Crocker, Public Works Director Dorsey, and City Clerk Rinearson. 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. Community Event Center Mayor Putaansuu introduced John Morrisey with the Kitsap Public Facilities District and Steve Rice and Lorie Limson Cook with Rice Fergus Miller. Ms. Limson Cook and Mr. Rice provided a progress update on the South Kitsap Community Event Center which included progress to date, site assessment, user program, public outreach, final program, preliminary conceptual plans for 3 sites, and site selection criteria, event space and uses, public comments, library space, the 3 site options (640 Bay Street/Kitsap Bank parking site, Kitsap Bank/Marina site, and Myhre’s/Library site), design requirements, and potential space uses. Additional discussion was held regarding water enjoyment use, shoreline master program, preferred alternative, parking, downtown master plan, and the public survey. Page 14 of 103 Minutes of October 20, 2020 Page 2 of 3 Council Direction: No direction was given. 2. Proposed Preliminary 2021-2022 Biennial Budget Mayor Putaansuu noted this was brought before the Finance Committee who provided their recommendations and asked to have this discussed before the full Council. Finance Director Crocker stated the preliminary budget is on file with the City Clerk and available for review by Council and members of the public. Pursuant to RCW 35.34.090, a Public Hearing on the proposed, preliminary 2021 – 2022 Biennial Budget is required on or before the first Monday of December. The hearing allows Council to hear public input on the preliminary budget, consider public comments and make any changes as indicated by the majority of the Council. Citizens and community organizations are encouraged to participate by providing the Council with their input for future infrastructure priorities, public safety enhancements, cultural and recreational opportunities, and other public services. Following citizen comments, the public hearing will be closed and the Council may continue with its deliberations concerning the 2021 – 2022 Biennial Budget. If the Council has any additional changes, these should be conveyed to staff so that a final 2021 – 2022 Budget can be presented for adoption on November 24, 2020. At 7:06 p.m., Mayor Putaansuu opened the public hearing. Finance Director Crocker provided a presentation on the preliminary budget and discussed background, overview, summary and highlights, revenues, department budgets, street fund, enterprise funds, equipment rental and revolving fund, capital project funds, debt service funds, special review funds, stabilization funds, and upcoming dates. There being no more testimony, Mayor Putaansuu closed the public hearing at 7:41 p.m. Additional discussion was held regarding the next steps, financial and human resources, possible Transportation Committee presentation, and clarification regarding the budget. Council Direction: No direction was given. NEW: GOOD OF THE ORDER Mayor Putaansuu provided an update on employee’s workstations and laptops and working remotely. Councilmember Lucarelli mentioned she sent an email asking the Council to sponsor a tree and it appears the majority are in support. Page 15 of 103 Minutes of October 20, 2020 Page 3 of 3 ADJOURNMENT The meeting adjourned at 8:23 p.m. No other action was taken. Audio/Visual was successful. Brandy Rinearson, MMC, City Clerk Jay Rosapepe, Mayor Pro-Tem Page 16 of 103 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: November 10, 2020 Subject: Adoption of a Resolution Approving a Prepared by: Mark Dorsey, P.E. Contract with Charon Drilling, Inc. for Public Works Director the 2020-2021 Well #11 Modification Atty Routing No.: N/A and Testing and Decommissioning of Atty Review Date: N/A Wells #1 and #2 and Documenting Procurement Procedures Summary: On September 22 and September 29, 2020, the City’s Public Works Department advertised in the Kitsap Sun, on the City’s Webpage, in the Daily Journal of Commerce and uploaded the Bid Documents to the Washington Builder’s Exchange. By the amended October 16, 2020 Bid Opening Due Date at 1:00 PM, the City received and opened two (2) Sealed Bids for the 2020-2021 Well #11 Modification and Testing and Decommissioning of Wells #1 and #2 Project. In general summary, the Sealed Bids received (applicable tax included) ranged from the apparent low of $98,200.00 to the apparent high of $119,600.00, with the Engineers Estimate at $100,000.00. Upon review by Staff and following the completion of the Mandatory Bidder Responsibility Checklist, it was determined that Charon Drilling, Inc. provided the low responsive Bid Proposal of $98,200.00 for the 2020-2021 Well #11 Modification and Testing and Decommissioning of Wells #1 and #2 Project. Relationship to Comprehensive Plan: Chapter 7 - Utilities. Recommendation: Staff recommends that the City Council adopt Resolution No. 040-20, thereby approving Contract No. C074-20 with Charon Drilling, Inc. in the amount of $98,200.00 for the 2020- 2021 Well #11 Modification and Testing and Decommissioning of Wells #1 and #2 Project and documenting the procurement procedures. Motion for Consideration: I move to adopt Resolution No. 040-20, and authorize the Mayor Pro-Tem to execute Contract No. C074-20 with Charon Drilling, Inc. in the amount of $98,200 for the 2020-2021 Well #11 Modification and Testing and Decommissioning of Wells #1 and #2 Project. Fiscal Impact: Funding provided from Water Capital Fund 413. Alternatives: Do not approve. Attachments: Resolution No. 040-20 and Contract No. C074-20. Page 17 of 103 RESOLUTION NO. 040-20 A RESOLUTION OF THE CITY OF PORT ORCHARD, WASHINGTON, APPROVING CONTRACT NO. C074-20 WITH CHARON DRILLING, INC. THE 2020-2021 WELL #11 MODIFICATION AND TESTING AND DECOMMISSIONING OF WELLS #1 AND #2 PROJECT AND DOCUMENTING THE PROCUREMENT PROCEDURES. WHEREAS, on September 22 and September 29, 2020, the City’s Public Works Department Advertised in the Kitsap Sun, on the City’s Webpage, in the Daily Journal of Commerce and uploaded the Bid Documents to the Washington Builder’s Exchange, with an October 9, 2020 Bid Opening Due Date; and WHEREAS, on October 5, 2020, Addendum No. 1 was issued, thereby revising the Bid Opening Due Date from October 9, 2020 to October 16, 2020; and WHEREAS, by the October 16, 2020 Bid Opening 1:00 PM deadline, the City received and opened two (2) Sealed Bids, with Charon Drilling, Inc. determined to be the responsive Low Bid; and WHEREAS, on November 20, 2020, the Public Works Department completed the Bidder’s Checklist; and WHEREAS, the Port Orchard City Council, at the 2015 recommendation of the State Auditor’s Office, wishes to document their selection/procurement 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 to adopt the “Whereas” statements contained herein, as findings in support of the City’s selection and procurement procedures. THAT: The City Council adopts the resolution and authorizes the Mayor Pro-Tem to execute Contract No. 074-20 with Charon Drilling, Inc. for the 2020-2021 Well #11 Modification and Testing and Decommissioning of Well #1 and #2 Project. PASSED by the City Council of the City of Port Orchard, SIGNED by the Mayor Pro-Tem and attested by the City Clerk in authentication of such passage on this 10th day of November 2020. ____________________________________ Jay Rosapepe, Mayor Pro-Tem ATTEST: ____________________________ Brandy Rinearson, MMC, City Clerk Page 18 of 103 Page 19 of 103 Page 20 of 103 Page 21 of 103 Page 22 of 103 Page 23 of 103 Page 24 of 103 Page 25 of 103 Page 26 of 103 Page 27 of 103 Page 28 of 103 Page 29 of 103 Page 30 of 103 Page 31 of 103 Page 32 of 103 Page 33 of 103 Page 34 of 103 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: November 10, 2020 Subject: Adoption of a Resolution Approving an Prepared by: Nicholas Bond, AICP Agreement with the McCormick Meadows DCD Director HOA Concerning Landis Court SW Atty Routing No.: Matter 11-Development Atty Review Date: November 5, 2020 Summary: At the September 15, 2020 City Council Work Study meeting, the City Council was presented with a request from the McCormick Meadows HOA concerning the possible public dedication of Landis Court SW. At that meeting, the City Council requested that City staff proceed with preparing the necessary instruments to accept Landis Court SW as a public road. Landis Court SW is a cul-de-sac private road in the McCormick Meadows subdivision. When Division 2 of McCormick Meadows was recorded in 2012, the City declined to accept the road because the radius of its curve exceeded the City’s Public Works road standards. Due to an oversight, the developer removed the road from the public dedications on the final plat, but did not actually convey it to the homeowners association (HOA). This has resulted in Landis Court SW being in a “limbo” situation, with neither the City nor the McCormick Meadows HOA having ownership or maintenance rights and responsibilities for the road. The HOA has been asking the City to take over this road for several years. The road curve radius cannot be corrected without buying out property occupied by an existing home. However, the City has performed tests to ensure that the road subgrade is in satisfactory condition, and has indicated to the HOA that if the HOA pays for a pavement grind and overlay to bring the road to like-new condition, the City may accept the road and take over future maintenance. The former developer, while claiming that he no longer owns the road, is willing to sign a quit claim deed to relinquish any legal interest he may still have in it. The HOA has indicated that it wishes to clear the cloud on the title, and that if the City will take over the property it is willing to do a special assessment to meet the City’s requirements for the road improvements. The South Kitsap Fire Department (SKFD) does not object to the City taking ownership of Landis Court SW, as a change in ownership will make no difference to SKFD’s existing emergency response access. City ownership would also allow the City to enforce parking requirements in future, if desired. Relationship to Comprehensive Plan: N/A Recommendation: Staff recommends that the City Council approved the attached Resolution as presented. Page 35 of 103 Staff Report 7B Page 2 of 2 Motion for consideration: “I move to adopt a Resolution authorizing the Mayor Pro-Tem to execute an agreement with the McCormick Meadows HOA and Feigley Road Partners LLC concerning Landis Court SW.” Fiscal Impact: The City will accept maintenance responsibilities for this short cul-de-sac road. The HOA will repair the road prior to dedication and will pay for the installation of signage that meets city requirements. Alternatives: Do not approve the agreement. Attachments: Resolution, Attachment 1: Agreement with McCormick HOA and Feigley Road Partners LLC, Exhibit A: Final Plat Map, Exhibit B: Overlay Map and Description, Exhibit C: Signage Details, Exhibit D: Deed #1, Exhibit E: Deed #2 and Attachment 2: Sketch and Legal Description. Page 36 of 103 RESOLUTION NO. ____ A RESOLUTION OF THE CITY OF PORT ORCHARD, WASHINGTON, AUTHORIZING THE MAYOR TO EXECUTE AN AGREEMENT WITH THE MCCORMICK MEADOWS HOMEOWNERS ASSOCIATION AND FEIGLEY ROAD PARTNERS, LLC, REGARDING LANDS COURT SW. WHEREAS, on October 25, 20212, the McCormick Meadows Division 2 was recorded, to include Landis Court SW, which is identified as a private road on the plat; and WHEREAS, the McCormick Meadows preliminary plat identified the road as public but the road was labeled as private road on the face of the final plat and was not clearly dedicated to either the city or the McCormick Meadows Homeowners Association (the “HOA”); and WHEREAS, the HOA and Feigley Road Partners, LLC (“FRP”) desire to execute a quit claim deed to transfer ownership to the City and for the City to dedicate the road as a public road; and WHEREAS, the road is in need of substantial repairs and work to conform with the City’s applicable standards for public roads; and WHEREAS, the City desires to dedicate the road as a public road once the necessary repairs and work are completed; now therefore; THE CITY COUNCIL OF THE CITY OF PORT ORCHARD, WASHINGTON, HEREBY RESOLVES AS FOLLOWS: THAT: It is the intent of the Port Orchard City Council that the recitals set forth above are hereby adopted and incorporated as findings in support of this Resolution. THAT: The City Council authorizes the Mayor Pro-Tem or designee to execute the Agreement attached hereto as Attachment 1. Per the Agreement, upon completion by the HOA of the repair work and installation of signage and receipt of executed quit claim deeds from FRP and the HOA regarding Landis Court SW, the City Council authorizes the acceptance of the quit claim deeds from FRP and the HOA and the dedication of Landis Court SW, legally described in Attachment 2 to this resolution, for public street purposes. The Mayor is authorized to execute documentation to effectuate this Resolution, in a form acceptable to the City Attorney. THAT: This Resolution shall be take full force and effect upon passage and signatures hereon. Page 37 of 103 Resolution No. ___ Page 2 of 2 PASSED by the City Council of the City of Port Orchard, SIGNED by the Mayor Pro-Tem and attested by the Clerk in authentication of such passage this 10th day of November 2020. Jay Rosapepe, Mayor Pro-Tem ATTEST: Brandy Rinearson, MMC, City Clerk Page 38 of 103 Attachment 1 to Resolution 046-20 AGREEMENT BETWEEN CITY OF PORT ORCHARD MCCORMICK MEADOWS HOA AND FEIGLEY ROAD PARTNERS, LLC This agreement (“agreement”) is entered into between the City of Port Orchard, a Washington municipal corporation (“City” or “Port Orchard”), the McCormick Meadows Homeowners Association, a Washington non-profit corporation (“HOA”), and Feigley Road Partners, LLC, a Washington limited liability company (“FRP”). The City, the HOA and FRP are each a “party” and together the “Parties” to this agreement. RECITALS A. FRP was the developer of McCormick Meadows Division 2 which it subsequently platted pursuant to the plat recorded on October 25, 2012 under Kitsap County Auditor No. 201210250061 and is attached as Exhibit “A” (the “Plat”). B. The Plat includes streets that following final plat approval were dedicated as public roads. C. One of the streets, Landis Court SW, was labeled on the Plat as a “private road” and, as a result, was not dedicated as a public road or otherwise transferred by FRP. D. FRP claims no right, title or interest in Landis Court SW and is willing to execute a quit claim deed in favor of the City to effect the intent of dedicating the road to the public. E. The HOA has asked the City to accept the deed as a dedication of Landis Court SW and make this private road a public road. F. The City is reluctant to accept the road because, years ago, Landis Court SW was repaired and includes a large patch that was not constructed in accordance with the applicable City standards. G. Subject to City Council approval, the City desires to accept Landis Court SW as a public road provided that the road is repaired and signage is installed consistent with the City’s specifications. H. The HOA, on behalf of its members, acknowledges that by making Landis Court SW a public road, the City may enforce the “no parking” requirements set out in the Port Orchard Municipal Code. AGREEMENT NOW, THEREFORE, in consideration of the mutual representations and covenants set forth herein, the parties hereby agree as follows: 1. McCormick Meadows Homeowners Association agrees as follows: a. The HOA agrees to perform the asphalt grind and overlay work to Landis Court SW to repair the roadway which work is described and depicted in Exhibit ”B” and agrees to pay for the installation of signage as described and depicted in Exhibit ”C”. Page 39 of 103 b. Upon completion by the HOA of the work specified in Section 1.a. above and acceptance by the City, the HOA will execute and deliver a quit claim deed transferring all right, title and interest it may have in Landis Court SW to the City of Port Orchard. The form of the HOA quit claim deed is attached as Exhibit “D”. 2. FRP agrees as follows: Upon completion by the HOA of the work specified in Section 1.a above and acceptance by the City, FRP will execute and deliver a quit claim deed transferring all right, title and interest it may have in Landis Court SW to the City of Port Orchard. The form of the FRP quit claim deed is attached as Exhibit “E”. 3. The City agrees as follows: Prior to the performance of any work contemplated in Section 1.a. above, the City will seek approval by the City Council, that upon completion of the work specified in Section 1.a. above, and inspection and acceptance of that work by the City, the City will accept the quit claim deeds from both the HOA and FRP at which time Landis Court SW will be a public road and added to the City’s transportation system. MISCELLANEOUS PROVISIONS Effective Date: This Agreement shall be effective and binding upon the signatories once it is fully executed, provided that acceptance of the quit claim deeds and dedication of the right of way are expressly conditioned on City Council approval. This Agreement shall automatically terminate if the City Council does not grant its approval. Binding Acceptance: This Agreement shall bind and benefit the parties hereto and their respective heirs, beneficiaries, administrators, executors, receivers, trustees, successors, and assigns, and the promises and obligations herein shall survive the expiration date hereof. Any purported assignment of this Agreement is void without the express written consent of the signatories. Voluntary Agreement: This Agreement is freely and voluntarily given by each party, without any duress or coercion, and after each party has consulted with its counsel. Each party has carefully and completely read all of the terms and provisions of this Agreement. Neither any of the parties, nor any of their affiliates, nor the City, will take any action to challenge any provision of this Agreement; nor will they participate with any other person or entity in any such challenge. Severability: If any term, condition, or provision of this Agreement shall, to any extent, be held to be invalid, preempted, or unenforceable, the remainder hereof shall be valid in all other respects and continue to be effective. Counterparts: This Agreement may be executed in several counterparts, each of which when so executed shall be deemed to be an original copy, and all of which together shall Page 40 of 103 constitute one agreement binding on all parties hereto, notwithstanding that all parties shall not have signed the same counterpart. No Waiver: No waiver of any provision of this Agreement or any breach of this Agreement shall be effective unless such waiver is in writing and signed by the waiving party and any such waiver shall not be deemed a waiver of any other provision of this Agreement or any other or subsequent breach of this Agreement. Captions and References: The captions and headings of sections throughout this Agreement are intended solely to facilitate reading and reference to the sections and provisions of this Agreement. Such captions shall not affect the meaning or interpretation of this Agreement. This Agreement consists of this document and Exhibits A – E attached hereto. Recitals: The recitals set forth above are incorporated herein by reference. MCCORMICK MEADOWS HOA: [Signature] Printed Name: _______________________ Title: ______________________________ Date signed: _________ CITY OF PORT ORCHARD Jay Rosapepe, Mayor-Pro-Tem Date signed: __________ FEIGLEY ROAD PARTNERS, LLC Thomas A. Barghausen Date signed: _________ Approved as to Form: Charlotte A. Archer, City Attorney Page 41 of 103 EXHIBIT A McCormick Meadows Division 2 Plat Page 42 of 103 Page 43 of 103 Page 44 of 103 Page 45 of 103 Page 46 of 103 Page 47 of 103 EXHIBIT B Asphalt Overlay Work Page 48 of 103 Area of overlay for sewertrench patchPage 49 of 103 Description of pavement repairs to Landis Ct.: Complete the utility trench patch repair. Remove and replace the 2 inch asphalt wearing course for one lane from curb to centerline with hot mix asphalt (HMA CL ½” PG 58). The extent of the repair shall be from the existing pavement joint at the intersection with Chatterton Ave. to the end of the utility patch. Prepare surfaces by leveling and proof rolling the existing layer of CSTC surfacing. The existing patch is assumed to be 6 inches and may be ground to 2 inches below the existing roadway surface or removed, replaced with CSTC, and compacted. Work shall be in accordance with the current edition of the City of Port Orchard Design and Construction Standards and WSDOT Standard Specifications. Page 50 of 103 EXHIBIT C Signage Page 51 of 103 10/29/2020 Novastar Development, Inc 18215 72nd Ave South Project:Landis Ct signs Kent, WA 98032 rweber@novastardev.com Reg Hrs OT Hrs Rate Rate Amount Fournier 4.00 35.35 141.40 - - - - - - TOTALS 4.00 - 35.35 141.40 Materials Quantity Amount Freight Tax Total Materials 1.00 702.00 702.00 63.18 765.18 concrete 6.00 4.29 25.74 2.32 28.06 thermoplastic 1.00 325.96 325.96 29.34 355.30 TOTALS 1,032.25 1,053.70 - 94.83 1,148.53 Equipment:Hours Rate Amount Trk 43 4.00 12.78 51.12 - - - TOTALS 4.00 51.12 Total Labor:141.40 Fringe Benefits (100%)141.40 Total Materials:1,148.53 tx Overhead (15%)tax & freight n/a 158.06 Total Equipment :51.12 Coding 002.0.369.40 TOTAL DUE 1,640.51 Page 52 of 103 EXHIBIT D HOA Quit Claim Deed Page 53 of 103 QUIT CLAIM DEED Page 1 of 2 AFTER RECORDING MAIL TO: Document Title: Quit Claim Deed Grantor: McCormick Meadows HOA, a Washington non-profit corporation Grantee: City of Port Orchard, a Washington municipal corporation Abbr. Legal: McCormick Meadows Div. 2 Plat Auditor No. 201210250061 Legal Description is on Page 1 of Document. Parcel Number: N/A QUIT CLAIM DEED THE GRANTOR, McCormick Meadows HOA, a Washington non-profit corporation, for and in consideration of the City of Port Orchard’s assumption of responsibility, hereby conveys and quit claims to the City of Port Orchard, a Washington municipal corporation, all right, title and interest in and to that certain street, inclusive of all improvements, labelled “Landis Court SW” on sheet 2 of 5 and sheet 3 of 5 of the Plat for McCormick Meadows Division 2 recorded on October 25, 2012 under Kitsap County Auditor No. 201210250061. The street “Landis Court SW” is dedicated to the use of the public as a public street and shall no longer be considered a private road as designated on the plat. DATED this ______ day of November, 2020. McCORMICK MEADOWS HOA By: Its President STATE OF WASHINGTON ) )ss. COUNTY OF ____________ ) On this day personally appeared before me ________________, to me known to be the President of McCormick Meadows HOA, a Washington non-profit corporation, and the individual Page 54 of 103 QUIT CLAIM DEED Page 2 of 2 described in and who executed the foregoing instrument, and acknowledged said instrument to be the free and voluntary act and deed of said corporation, for the uses and purposes therein mentioned. GIVEN under my hand and official seal this ___ day of November, 2020. NOTARY PUBLIC in and for the State of Washington, residing at My commission expires: Printed Name: ACCEPTED: CITY OF PORT ORCHARD By: Its Date: November _____, 2020. Page 55 of 103 EXHIBIT E FRP Quit Claim Deed Page 56 of 103 QUIT CLAIM DEED Page 1 of 2 AFTER RECORDING MAIL TO: Document Title: Quit Claim Deed Grantor: Feigley Road Partners, LLC, a Washington limited liability company Grantee: City of Port Orchard, a Washington municipal corporation Abbr. Legal: McCormick Meadows Div. 2 Plat Auditor No. 201210250061 Legal Description is on Page 1 of Document. Parcel Number: N/A QUIT CLAIM DEED THE GRANTOR, Feigley Road Partners, LLC, a Washington limited liability company, for and in consideration of the City of Port Orchard’s assumption of responsibility, hereby conveys and quit claims to the City of Port Orchard, a Washington municipal corporation, all right, title and interest in and to that certain street, inclusive of all improvements, labelled “Landis Court SW” on sheet 2 of 5 and sheet 3 of 5 of the Plat for McCormick Meadows Division 2 recorded on October 25, 2012 under Kitsap County Auditor No. 201210250061. The street “Landis Court SW” is dedicated to the use of the public as a public street and shall no longer be considered a private road as designated on the plat. DATED this ______ day of November, 2020. Feigley Road Partners, LLC By: Thomas A. Barghausen Its Managing Member STATE OF WASHINGTON ) )ss. COUNTY OF ____________ ) On this day personally appeared before me Thomas A. Barghausen, to me known to be the Managing Member of Feigley Road Partners, LLC, a Washington limited liability company, and Page 57 of 103 QUIT CLAIM DEED Page 2 of 2 the individual described in and who executed the foregoing instrument, and acknowledged said instrument to be the free and voluntary act and deed of said company, for the uses and purposes therein mentioned. GIVEN under my hand and official seal this ___ day of November, 2020. NOTARY PUBLIC in and for the State of Washington, residing at My commission expires: Printed Name: ACCEPTED: CITY OF PORT ORCHARD By: Its Date: November _____, 2020. 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Box 637, Port Orchard, WA 98366SITE10/22/2020Page 60 of 103 ''Engineering, Planning and Surveying(360) 895-2350 or (360) 876-22842453 Bethel Avenue, P.O. Box 637, Port Orchard, WA 9836610/22/2020Page 61 of 103 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: November 10, 2020 Subject: Adoption of a Resolution Repealing Prepared by: Noah Crocker Resolution No. 022-12 and Adopting Finance Director Updated Financial Policies Atty Routing No.: Matter 7 - Finance Atty Review Date: November 4, 2020 Summary: On August 28, 2012, the City Council adopted City financial Policies by resolution, providing guidance and a policy framework for the City to operate. In accordance with financial best practices, City staff reviewed these financial policies to ensure they are continuing to provide the City with the most current financial guidance. The City has continued to grow and evolve, and staff have identified some the policies have become obsolete and outdated. By this Resolution, the City Council would adopt updated Financial Policies to reflect the most current state of sound fiscal practices. These updates are proposed to reflect the current state of the City’s operations, as well as the current financial goals set by Council. Of importance is the removal of reference to GAAP-based reporting, as the City has moved to cash basis reporting. Additionally, the City has separated its enterprise funds into separate account structures to provide greater transparency, uniformity and understanding of the utilities. As the enterprise funds have evolved so has the working capital and stabilization reserve targets for these funds which have now been incorporated into these financial policies. Recommendation: Staff recommends approving the resolution repealing resolution No. 022-12 and adopting the updated Financial Policies as attached in Exhibit A. Relationship to Comprehensive Plan: N/A Motion for consideration: “I move to adopt a resolution repealing No. 022-12 and adopting the updated and revised Financial Policies.” Fiscal Impact: N\A Alternatives: Do not approve Resolution and provide alternative guidance Attachments: Resolution and red-line and final Financial Policies. Page 62 of 103 RESOLUTION NO. _______ A RESOLUTION OF THE CITY OF PORT ORCHARD, WASHINGTON, REPEALING RESOLUTION NO. 022-12 AND ESTABLISHING UPDATED FINANCIAL POLICIES FOR REVENUE, EXPENDITURE, CASH, INVESTMENT AND DEBT MANAGEMENT, FUND BALANCE AND RESERVE, INVENTORY AND PHYSICAL ASSETS, AND ACCOUNTING PRACTICES AND PROCESSES. WHEREAS, the Port Orchard City Council and Mayor recognize that financial integrity is of utmost importance for the residents of the City; and WHEREAS, written, adopted financial policies have many benefits for the City, such as assisting our elected official and staff in the financial management of the City, saving time and energy discussing financial matters, engendering public confidence, and providing continuity overt time as elected officials and staff member change; and WHEREAS, financial policies provide the foundation and framework for many of the issues and decisions facing the City, and promote sound financial management and assist in the City’s stability, efficiency and effectiveness; and WHEREAS, in recognition of these values, the City adopted financial policies via Resolution No. 022-12; and WHEREAS, consistent with best practices, Staff reviewed existing policies to propose updated policies to ensure they continue to provide the best framework and guidance; and WHEREAS, the Council Finance Committee and subsequently the full council have reviewed the proposed updates to the financial policies, and find that they are consistent with sound fiscal policies and in the best interests of the City’s residents; now, therefore; THE CITY COUNCIL OF THE CITY OF PORT ORCHARD, WASHINGTON, HEREBY RESOLVES AS FOLLOWS: THAT: Resolution NO. 022-12 is hereby repealed in its entirety. THAT: The Financial Policies attached hereto as Exhibit A are hereby approved and adopted. THAT: This Resolution shall be take full force and effect upon passage and signatures hereon. The repeal of Resolution No. 022-12 by this resolution shall not be construed as affecting any existing right acquired under the laws repealed, nor as affecting any proceeding instituted thereunder, nor any rule, regulation or order promulgated thereunder. Page 63 of 103 Resolution No. 0**-20 Page 2 of 2 PASSED by the City Council of the City of Port Orchard, SIGNED by the Mayor Pro-Tem and attested by the City Clerk in authentication of such passage this 10th day of November 2020. Jay Rosapepe, Mayor Pro-Tem ATTEST: Brandy Rinearson, MMC, City Clerk Page 64 of 103 Resolution No. 022XXX-1220 Exhibit A City of Port Orchard Financial Policies The financial integrity of our City government is of utmost importance. Our City has evolved with a variety of financial policies that can be found in many different sources including: City Council Resolutions and Ordinances; Budget documents; and Capital Improvement Programs. The set of policies within this document seeks to serve as a central reference point of the most important of our policies, which are critical to the continued financial health of our city. Written, adopted financial policies have many benefits, such as assisting the elected officials and staff in the financial management of the City, saving time and energy when discussing financial matters, engendering public confidence, and providing continuity over time as elected officials and staff members change. While these policies will be amended periodically, they will provide the basic foundation and framework for many of the issues and decisions facing the City. They will promote sound financial management and assist in the City's stability, efficiency, and effectiveness. Financial Goals The City of Port Orchard' s financial goals seek to: •Ensure the financial integrity of the City • Manage the financial assets in a sound and prudent manner •Improve financial information for decision makers at all levels: o Policy makers as they contemplate decisions that affect the City on a long- term basis o Managers as they implement policy on a day-to-day basis •Maintain and further develop programs to ensure the long term ability to pay all costs necessary to provide the level and quality of service required by the citizens •Maintain a spirit of openness and transparency while being fully accountable to the public for the City's fiscal activities Financial Policies Port Orchard's financial policies address the following major areas: • General Policies • Revenue Policies • Expenditure Policies • Operating Budget Policy • Capital Management Policy • Accounting Policy • Debt Policy • Cash Management/Investment Policy • Reserve/Stabilization Arrangements Page 65 of 103 Resolution No. 022XXX-1220 Exhibit A 2 I. General Policies I. The City Council may adopt resolutions or ordinances to set financial policies to assure the financial strength and accountability of the City. 2. The Mayor and/or Treasurer Finance Director may develop administrative directives and general procedures for implementing the City Council's financial policies. 3. All City Departments share in the responsibility of meeting policy goals and ensuring long-term financial health. Future service plans and programs will be developed to reflect current policy directives, projected resources, and future service requirements. 4. Efforts should be coordinated with other governmental agencies to achieve common policy objectives, share the cost of providing governmental services on an equitable basis, and support favorable legislation at the state and federal level. 5. Initiate, encourage, and participate in economic development efforts to create job opportunities and strengthen the local economy. 6. The City will strive to maintain fair and equitable relationships with its contractors and suppliers. II. Revenue Policies Design, maintain, and administer a revenue system that will assure a reliable, equitable, diversified, and sufficient revenue stream to support desired City services. General Revenues l. Current expenditures will be funded by current revenues. The City will try strive to maintain a diversified and stable revenue system to protect programs from short- term fluctuations in any single source. 2. Budgeted revenues will be estimated conservatively using accepted standards and estimates provided by the state, other governmental agencies or reliable economic forecasters when available. 3. General Fund and other unrestricted revenues will not be earmarked for specific purposes, activities or services unless otherwise authorized by City Council or required by law, or generally accepted accounting practices (GAAP). All nonrestricted unrestricted revenues will be deposited into the General Fund and appropriated by the budget process. 4. If revenues from "one-time" or limited duration sources are used to balance the City's annual operating budget, it is to be fully disclosed and explained at the time the budget is written. It is the City' s goal to not rely on these types of revenues to balance the operating budget. 5. The CityThe willCity will not use deficit financing and borrowing to support on-going Page 66 of 103 Resolution No. 022XXX-1220 Exhibit A 3 operations in the case of long-term (greater than one year) revenue downturns. Revenue forecasts will be revised, and expenses will be reduced to conform to the revised long-term revenue forecast or revenue increases will be considered. 6. The City will follow an aggressive and professional policy of collecting revenues. When necessary, discontinuing service, small claims court, collection agencies, foreclosure, liens and other methods of collection, such as imposing penalties, collection and late charges, may be used. Fees and Charges 7. Enterprise and Internal Service operations are to be self-supporting. 8. The City is to maximize the use of service users' charges in lieu of ad valorem (property) taxes and subsidies from other City funds, for services that can be identified and where costs are directly related to the level of service provided. a. Charges for providing utility services shall will be sufficient to finance all operating, capital outlay, and debt service expenses of the City's enterprise funds, including operating contingency, planned capital improvements, and reserve requirements. b. Park recreation programs should be funded by a users' charge. User charges shall be comparable to other neighboring cities where practical. c. Other reimbursable work performed by the City (labor, meals, contracted services, equipment and other indirect expenses) shall be billed at actual or estimated actual cost. d. The City Council by resolutions or ordinances may declare certain community events beneficial to the City and its citizens, and allow City personnel, under the direction and control of the Mayor or his/her designated department director to support the event, without requiring reimbursement of expenses. Community events declared beneficial shall be included in the current expense budget. e. Charges for services shall accurately reflect the actual or estimated cost of providing a specific service. The cost of providing specific services shall be recalculated periodically, and the fee adjusted accordingly. The City shall should maintain a current schedule of fees and charges, showing when the fees were last reviewed and/or recalculated. f. The City will may consider market rates and charges levied by other municipalities for like services in establishing rates, fees, and charges. g. Certain fees, such as rental fees, will be based upon market conditions and are not subject to the limitations of cost recovery. Formatted: Indent: Left: 0.65", First line: 0" Page 67 of 103 Resolution No. 022XXX-1220 Exhibit A 4 9. Grant funding for programs or items which address the City's current priorities and policy objectives should be considered to leverage City funds. Inconsistent and/or fluctuating grants should not be used to fund on-going programs. 10. Before accepting any grant, the City shall thoroughly consider the implications in tenns terms of ongoing obligations that will be required in connection with acceptance of said grant. 11. All grants and other federal and state funds shall be managed to comply with the laws, regulations, and guidance of the grantor. III. Expenditure Policies Identify priority services, establish appropriate service levels, and administer the expenditure of available resources to assure fiscal stability and the effective and efficient delivery of services. 1. The City will strive to adopt an annual biennial General Fund budget in which current expenditures do not exceed current projected revenues. Capital expenditures may be funded from one-time revenues. The City will determine a list of one-time revenues. 2. Department Directors are responsible for managing their budgets within the total appropriation for their department. 3. The City will take immediate corrective actions if at any time during the fiscal year expenditure and revenue re-estimates are such that an operating deficit is projected at year-end. Corrective actions can include a hiring freeze, furloughs, staffing reductions, expenditure reductions, fee increases, or use of contingencies. The City Council may approve a short-term interfund loan or use of one-time revenue sources to address temporary gaps in cash flow, although this will be avoided if possible. 4. Long-term debt or bond financing shall not be used to finance current operating expenditures. 5. The City will assess funds for services provided internally by other funds. Ilnterfund service fees charged to recover these costs will be recognized as revenue to the providing fund. 6. Emphasis should be placed on improving individual and work group productivity rather than adding to the work force. The City will invest in technology and other efficiency tools to maximize productivity. The City should hire additional staff only after the need for such positions has been demonstrated and documented. 7. All compensation planning and collective bargaining is encouraged to focus on the total cost of compensation which includes direct salary, health care benefits, pension contributions, and other benefits which are a cost to the City. Page 68 of 103 Resolution No. 022XXX-1220 Exhibit A 5 8. Periodic comparisons of service delivery will be made to ensure that quality services are provided to our citizens at the most competitive and economical cost. Privatization and contracting with other governmental agencies should be evaluated as alternatives to service delivery where appropriate. Programs that are determined to be inefficient and/or ineffective shall be reduced in scope or eliminated. 9. Whenever feasible, government activities should be considered enterprises if so doing will increase efficiency of service delivery or recover the cost of providing the service from the benefiting entity by user fees. 10. The City will make every effort to maximize any discounts offered by creditors/vendors. IV. Operating Budget Policies 1. The City Council will adopt and maintain a balanced annual biennial operating budget. 2. The City will strive to adopt a budget where current annual operating revenues will be equal to or greater than current operating expenditures. 3. Balanced revenue and expenditure forecasts should be prepared to examine the City's ability to absorb operating costs due to changes in the economy, service demands, contractual obligations, and capital improvements. 4. In the event a balanced budget is not attainable, and the cause of the imbalance is expected to last for no more than one year, the planned use of reserves to balance the budget is permitted. In the event that a budget shortfall isshortfall is expected to continue beyond one year, the planned use of reserves must be developed as part of a corresponding strategic financial plan to close the gap through revenue increases or expenditure decreases. 5. The operating budget shall serve as the annual biennial financial plan for the City. It will serve as the policy document of the City Council for implementing Council goals and objectives. The budget will provide the staff the resources necessary to accomplish City Council determined service levels. 6. As mandated by RCW 35A.334.05180, the Mayor chief administrative officer shall annually biennially present a proposed operating budget to the City Council at least sixty days before the beginning of the next fiscal bienniumon or before the first Monday in October. The City Council must adopt by ordinance a final balanced budget no later than December 31 of each year. 7. As stipulated under RCW 35A.34.270, all appropriations in any current operating fund shall lapse at the end of each fiscal biennium. However, this shall not prevent payments in the following biennium upon uncompleted programs or improvements in progress or on orders subsequently filled or claims subsequently billed for the purchase of material, equipment, and supplies or for personal or contractual services not completed or furnished by the end of the fiscal biennium, all of which have been properly budgeted and contracted for prior to the close of such fiscal biennium, but furnished or completed in due course thereafter. 7.8. Funds may not be expended or encumbered for the following fiscal yearbiennium until Formatted: Font: 11.5 pt, Font color: CustomColor(RGB(70,68,70)) Page 69 of 103 Resolution No. 022XXX-1220 Exhibit A 6 the budget has been adopted by the City Council. V. Capital Management Policies Review and monitor the state of the City's capital equipment and infrastructure, setting priorities for its replacement and renovation based on needs, fonding funding alternatives, and availability of resources. Page 70 of 103 Resolution No. 022XXX-1220 Exhibit A 7 Capital Facilities Plan Element 1. The City will develop a cCapital fFacilities pPlan (CFP) as defined and required by RCW 36.70A.070 which is consistent with the City Comprehensive Plan. The Capital budget should reflect the Capital Facilities Plan Elements. The plan shall be for a period of six years. Capital Asset Management 1. The City will maintain its capital assets at a level adequate to protect the City' s capital investment and to minimize future maintenance and replacement costs. The budget will provide for adequate maintenance and orderly replacement of capital assets from current revenues where possible. 2. The capitalization threshold used in determining if a given asset qualifies for capitalization is $45,000 per item with a useful life of over one year. 3. The City Departments will conduct on a continuous, monthly, annually, multi-year basis or performed in sections over a multi-year cycle a an annual physical count/inspection of all capital assets. 4. Adequate insurance will be maintained on all capital assets consistent with the results of the annual physical count/inspection. VI. Accounting Policies Comply with prevailing federal, state, and local statutes and regulations. Conform to a comprehensive basis of accounting in compliance with Washington State statutes, Budgeting, Accounting, and Reporting System (BARS), and with generally accepted accounting principles (GAAP) as promulgated by the Governmental Accounting Standards Board (GASB,) and the Government Finance Officers Association (GFOA) where applicable. 1. The City will maintain expenditure categories according to state statute and administrative regulation. The City will use the "Budgeting, Accounting & Reporting System" (BARS) prescribed by the State Auditor for its revenue and expenditure classification. 2. Quarterly budget reports showing the current status of revenues and expenditures will may be prepared and distributed to council, and appropriate staff and management personnel in a timely manner and made available for public inspection. 3. Electronic financial systems will be maintained to monitor revenues, expenditures, and program performance on an ongoing basis. 4. The Annual Financial Report will be prepared and submitted to the State Auditor's Office no later than 150 days from the end of the preceding fiscal year. 5. The Annual Financial Report will be prepared on the basis of accounting that Formatted: Font: 11 pt Formatted: Font: Not Italic Page 71 of 103 Resolution No. 022XXX-1220 Exhibit A 8 demonstrates compliance with Washington State statutes and the BARS manual prescribed by the State Auditor, which is a comprehensive basis of accounting other than generally accepted accounting principles. The report will provide full disclosure of all financial activities and related matters. 6. The City's budget should satisfy criteria as a financial and programmatic policy document, as a comprehensive financial plan, as an operations guide for all organizational units, and as a communications device for all significant budgetary issues, trends and resources. It should be a goal of the Finance Department to submit build athe budget document that is readable, transparent, and worthy of to the Washington Finance Officers Association (WFOA) or Government Finance Officers Association (GFOA) dDistinguished Budget Presentationbudget presentation program.. VII. Debt Policies Establish guidelines for debt financing that will provide needed capital equipment and infrastructure improvements while minimizing the impact of debt payments on current revenues. 1. The City will not use long-term debt to pay for current operations. The use of bonds or certificates of participation will only be considered for significant capital and infrastructure improvements. 2. The term of the debt shall never extend beyond the useful life of the improvements to be financed. 3. General obligation debt will not be used for self-supporting enterprise activity.General Obligation debt should be prioritized for governmental activities; however, it could be considered for enterprise activities as deemed appropriate and in the best interest of the City by City Council. 4. The general policy of the City is to establish debt repayment schedules that use level annual principal and interest payments. 5. Interest earnings on bond proceeds will be limited to I1) funding the improvements specified in the authorizing bond ordinance, or 2) payment of debt service on the bonds. 6. Proceeds from debt will be used in accordance with the purpose of the debt issue. Funds remaining after the project is completed will be used in accordance with the provisions stated in the bond ordinance that authorized the issuance of the debt. 7. The City will use the most prudent methods of acquiring capital outlay items, including, but not limited to, the use of lease-purchase agreements. lIn no case will the City lease- purchase equipment whose useful life is less than the term of the lease .lease. 8. The City will maintain its bond rating at the highest level fiscally prudent, so that future borrowing costs are minimized and access to the credit market is preserved. The City will encourage and maintain good relations with financial bond rating agencies and will follow a policy of full and open disclosure. Page 72 of 103 Resolution No. 022XXX-1220 Exhibit A 9 VIII. Cash Management and Investment Policies Manage and invest the City's operating cash to ensure its legality, safety, provide for necessary liquidity, avoid imprudent risk, and optimize yield. I 1 . Cash and Investment programs will be maintained in accordance with City regulations and will ensure that proper controls and safeguards are maintained. City funds will be managed in a prudent and diligent manner with an emphasis on safety of principal, liquidityprincipal, liquidity, and financial return on principal (yield), in that order. 2. The City will develop and adopt an investment policy. 3. The City will develop and maintain written guidelines on cash handling, accounting, segregation of duties, and other financial matters. 4. All financial transactions of the city fall under the responsibility and control of the City TreasurerFinance Director; except the financial duties of the municipal court as prescribed by Washington Court Rule, General Rule 29, (GR29) which shall be the responsibility of the Presiding Judge of the Municipal Court. 5. Special investigative unit funds as provided in Chapter 69.50 RCW needed for the interception of illegal drugs leading to drug seizures shall be held in a transactional account for the purpose of securely and quickly providing access to funds on demand. Signatories shall include the Chief of Police and Police CommanderDeputy Chief. 6.5. Access to mMonthly reports will be provided prepared and distributed to all departments and prepared and distributed to the City Council showing cash position, and year-to-date budgeted and actual expenditures. 7.6. The City will conduct annual reviews of its internal controls and cash handling procedures. IX. Reserve Policies Maintain the reserves, contingencies, and ending fond fund balances of the various operating funds at levels sufficient to protect the City's credit as well as its financial position from emergencies. General Fund and Enterprise Reserves The City recognizes that reserves need to be acquired over multiple budget years cycles and require discipline and a strong commitment to maintain. Reserves are a necessary component of the overall finance management strategy of the City. Reserves serve a variety of purposes. 1) Ensuring adequate resources for cash flow 2) Mitigating short-term effects of revenue shortages 3) Leveraging beneficial opportunities 4) Page 73 of 103 Resolution No. 022XXX-1220 Exhibit A 10 Providing the ability to exercise flexible financial planning, and 5) To address unforeseen emergencies or changes in conditions. The City will strive to maintain the following a two tier reserve structure:. • Assigned Ending Fund Balance designated as working capital in the general fund and Enterprise funds • Stabilization Arrangement reported as restricted or committed in the general fund and Enterprise Funds Working Capital General Fund (Current Expense, Street): The City's goal shall be to maintain a minimumn undesignated unreserved General Fund ending fund balance of at least five 12.5% (45 days)percent of annual budgeted General Fund operating revenues per fund (rounded to nearest thousand) with the intent to move toward an ending fund balance target of 25% (90 days) as funding allows. Ending Fund balance may be used to cover cash flow needs caused by the timing of the ad valorem tax cycle collections which results in the traditional "W" cash flow sequence. Ending fund balance reserve is considered working capital of the general ffund. Enterprise Fund’s (Water, Sewer, Storm): The City's goal shall be to maintain a minimum undesignated reserved ending fund balance of at least 17% (~60 days) of annual budgeted operating revenues per fund (rounded to the nearest thousand) with the intent to move toward an ending fund balance target of 25% (90 days) as funding allows. Ending Fund balance may be used to cover cash flow needs. Ending fund balance reserve is considered working capital of the fund. Stabilization ArrangementFund General Fund (Current, Street): A City Stabilization Arrangement in an amount of two months17% (~ 60 days) of its five year arithmetic mean of its annual allocated General Fund expenditure budget may be maintained annually as resources allow. Funding may come from one time revenues, monthly budgeted amounts from general revenues, and transfers from ending fund balance as authorized by Council resolution. Enterprise Funds (Water, Sewer, Storm): A City Stabilization amount of 25% of its annual allocated expenditure budget per fund may be maintained annually as resources allow. Funding may come from one-time revenues, monthly budgeted amounts from operation revenues, and transfers from ending fund balance as authorized by Council. Stabilization reserves shall be used if all efforts have been exhausted to fund a qualifying event and no reasonable budget adjustments are available to continue to provide essential services to Formatted: Left: 1", Right: 1", Top: 1", Bottom: 1",Header distance from edge: 0", Footer distance fromedge: 0" Formatted: Font: Bold Formatted: Font: Bold Page 74 of 103 Resolution No. 022XXX-1220 Exhibit A 11 the public. The City TreasurerFinance Director must quantify, document and present the significance of the qualifying event. Authorization for spending stabilization reserves requires a simple majority vote of the City Council. Qualifying Events: • The State of Washington or Federal government formally declares a disaster or emergency. • A natural or urgent event that jeopardizes public safety, impedes commerce, or threatens additional damage to City infrastructure. • Unforeseen events or situation outside of the scope of contingency planning or planned normal course of government operations. • An act of war, terrorism, or declaration of Martial law. Page 75 of 103 Formatted: Left: 1", Right: 1", Top: 1", Bottom: 1" Page 76 of 103 Resolution No. XXX-20 Exhibit A City of Port Orchard Financial Policies The financial integrity of our City government is of utmost importance. Our City has evolved with a variety of financial policies that can be found in many different sources including: City Council Resolutions and Ordinances; Budget documents; and Capital Improvement Programs. The set of policies within this document seeks to serve as a central reference point of the most important of our policies, which are critical to the continued financial health of our city. Written, adopted financial policies have many benefits, such as assisting the elected officials and staff in the financial management of the City, saving time and energy when discussing financial matters, engendering public confidence, and providing continuity over time as elected officials and staff members change. While these policies will be amended periodically, they will provide the foundation and framework for many of the issues and decisions facing the City. They will promote sound financial management and assist in the City's stability, efficiency, and effectiveness. Financial Goals The City of Port Orchard' s financial goals seek to: •Ensure the financial integrity of the City • Manage the financial assets in a sound and prudent manner •Improve financial information for decision makers at all levels: o Policy makers as they contemplate decisions that affect the City on a long- term basis o Managers as they implement policy on a day-to-day basis •Maintain and further develop programs to ensure the long term ability to pay all costs necessary to provide the level and quality of service required by the citizens •Maintain a spirit of openness and transparency while being fully accountable to the public for the City's fiscal activities Financial Policies Port Orchard's financial policies address the following major areas: • General Policies • Revenue Policies • Expenditure Policies • Operating Budget Policy • Capital Management Policy • Accounting Policy • Debt Policy • Cash Management/Investment Policy • Reserve/Stabilization Arrangements Page 77 of 103 Resolution No. XXX-20 Exhibit A 2 I. General Policies I. The City Council may adopt resolutions or ordinances to set financial policies to assure the financial strength and accountability of the City. 2. The Mayor and/or Finance Director may develop administrative directives and general procedures for implementing the City Council's financial policies. 3. All City Departments share in the responsibility of meeting policy goals and ensuring long-term financial health. Future service plans and programs will be developed to reflect current policy directives, projected resources, and future service requirements. 4. Efforts should be coordinated with other governmental agencies to achieve common policy objectives, share the cost of providing governmental services on an equitable basis, and support favorable legislation at the state and federal level. 5. Initiate, encourage, and participate in economic development efforts to create job opportunities and strengthen the local economy. 6. The City will strive to maintain fair and equitable relationships with its contractors and suppliers. II. Revenue Policies Design, maintain, and administer a revenue system that will assure a reliable, equitable, diversified, and sufficient revenue stream to support desired City services. General Revenues l. Current expenditures will be funded by current revenues. The City will strive to maint ain a diversified and stable revenue system to protect programs from short- term fluctuations in any single source. 2. Budgeted revenues will be estimated conservatively using accepted standards and estimates provided by the state, other governmental agencies or reliable economic forecasters when available. 3. General Fund and other unrestricted revenues will not be earmarked for specific purposes, activities or services unless otherwise authorized by City Council or required by law, or generally accepted accounting practices. All unrestricted revenues will be deposited into the General Fund and appropriated by the budget process. 4. If revenues from "one-time" or limited duration sources are used to balance the City's annual operating budget, it is to be fully disclosed and explained at the time the budget is written. It is the City's goal to not rely on these types of revenues to balance the operating budget. 5. The City will not use deficit financing and borrowing to support on-going Page 78 of 103 Resolution No. XXX-20 Exhibit A 3 operations in the case of long-term (greater than one year) revenue downturns. Revenue forecasts will be revised, and expenses will be reduced to conform to the revised long-term revenue forecast or revenue increases will be considered. 6. The City will follow an aggressive and professional policy of collecting revenues. When necessary, discontinuing service, small claims court, collection agencies, foreclosure, liens and other methods of collection, such as imposing penalties, collection and late charges, may be used. Fees and Charges 7. Enterprise and Internal Service operations are to be self-supporting. 8. The City is to maximize the use of service users' charges in lieu of ad valorem (property) taxes and subsidies from other City funds, for services that can be identified and where costs are directly related to the level of service provided. a. Charges for providing utility services will be sufficient to finance all operating, capital outlay, and debt service expenses of the City's enterprise funds, including operating contingency, planned capital improvements, and reserve requirements. b. Park recreation programs should be funded by a users' charge. User charges shall be comparable to other neighboring cities where practical. c. Other reimbursable work performed by the City (labor, meals, contracted services, equipment and other indirect expenses) shall be billed at actual or estimated cost. d. The City Council by resolutions or ordinances may declare certain community events beneficial to the City and its citizens, and allow City personnel, under the direction and control of the Mayor or his/her designated department director to support the event, without requiring reimbursement of expenses. Community events declared beneficial shall be included in the current expense budget. e. Charges for services shall accurately reflect the actual or estimated cost of providing a specific service. The cost of providing specific services shall be recalculated periodically, and the fee adjusted accordingly. The City should maintain a current schedule of fees and charges, showing when the fees were last reviewed and/or recalculated. f. The City may consider market rates and charges levied by other municipalities for like services in establishing rates, fees, and charges. g. Certain fees, such as rental fees, will be based upon market conditions and are not subject to the limitations of cost recovery. Page 79 of 103 Resolution No. XXX-20 Exhibit A 4 9. Grant funding for programs or items which address the City's current priorities and policy objectives should be considered to leverage City funds. Inconsistent and/or fluctuating grants should not be used to fund on-going programs. 10. Before accepting any grant, the City shall thoroughly consider the implications in terms of ongoing obligations that will be required in connection with acceptance of said grant. 11. All grants and other federal and state funds shall be managed to comply with the laws, regulations, and guidance of the grantor. III. Expenditure Policies Identify priority services, establish appropriate service levels, and administer the expenditure of available resources to assure fiscal stability and the effective and efficient delivery of services. 1. The City will strive to adopt a biennial General Fund budget in which current expenditures do not exceed current projected revenues. Capital expenditures may be funded from one-time revenues. 2. Department Directors are responsible for managing their budgets within the total appropriation for their department. 3. The City will take immediate corrective actions if at any time during the fiscal year expenditure and revenue estimates are such that an operating deficit is projected at year-end. Corrective actions can include a hiring freeze, furloughs, staffing reductions, expenditure reductions, fee increases, or use of contingencies. The City Council may approve a short-term interfund loan or use of one-time revenue sources to address temporary gaps in cash flow, although this will be avoided if possible. 4. Long-term debt or bond financing shall not be used to finance current operating expenditures. 5. The City will assess funds for services provided internally by other funds. Interfund service fees charged to recover these costs will be recognized as revenue to the providing fund. 6. Emphasis should be placed on improving individual and work group productivity rather than adding to the work force. The City will invest in technology and other efficiency tools to maximize productivity. The City should hire additional staff only after the need for such positions has been demonstrated and documented. 7. All compensation planning and collective bargaining is encouraged to focus on the total cost of compensation which includes direct salary, health care benefits, pension contributions, and other benefits which are a cost to the City. Page 80 of 103 Resolution No. XXX-20 Exhibit A 5 8. Periodic comparisons of service delivery will be made to ensure that quality services are provided to our citizens at the most competitive and economical cost. Privatization and contracting with other governmental agencies should be evaluated as alternatives to service delivery where appropriate. Programs that are determined to be inefficient and/or ineffective shall be reduced in scope or eliminated. 9. Whenever feasible, government activities should be considered enterprises if so doing will increase efficiency of service delivery or recover the cost of providing the service from the benefiting entity by user fees. 10. The City will make every effort to maximize any discounts offered by creditors/vendors. IV. Operating Budget Policies 1. The City Council will adopt and maintain a balanced biennial operating budget. 2. The City will strive to adopt a budget where current annual operating revenues will be equal to or greater than current operating expenditures. 3. Balanced revenue and expenditure forecasts should be prepared to examine the City's ability to absorb operating costs due to changes in the economy, service demands, contractual obligations, and capital improvements. 4. In the event a balanced budget is not attainable, and the cause of the imbalance is expected to last for no more than one year, the planned use of reserves to balance the budget is permitted. In the event that a budget shortfall is expected to continue beyond one year, the planned use of reserves must be developed as part of a corresponding strategic financial plan to close the gap through revenue increases or expenditure decreases. 5. The operating budget shall serve as the biennial financial plan for the City. It will serve as the policy document of the City Council for implementing Council goals and objectives. The budget will provide the staff the resources necessary to accomplish City Council determined service levels. 6. As mandated by RCW 35A.34.080, the chief administrative officer shall biennially present a proposed operating budget to the City Council at least sixty days before the beginning of the next fiscal biennium. The City Council must adopt by ordinance a final balanced budget no later than December 31 of each year. 7. As stipulated under RCW 35A.34.270, all appropriations in any current operating fund shall lapse at the end of each fiscal biennium. However, this shall not prevent payments in the following biennium upon uncompleted programs or improvements in progress or on orders subsequently filled or claims subsequently billed for the purchase of material, equipment, and supplies or for personal or contractual services not completed or furnished by the end of the fiscal biennium, all of which have been properly budgeted and contracted for prior to the close of such fiscal biennium, but furnished or completed in due course thereafter. 8. Funds may not be expended or encumbered for the following biennium until the budget has been adopted by the City Council. Page 81 of 103 Resolution No. XXX-20 Exhibit A 6 V. Capital Management Policies Review and monitor the state of the City's capital equipment and infrastructure, setting priorities for its replacement and renovation based on needs, funding alternatives, and availability of resources. Capital Facilities Plan Element 1. The City will develop a capital facilities plan as defined and required by RCW 36.70A.070 which is consistent with the City Comprehensive Plan. The Capital budget should reflect the Capital Facilities Plan Elements. The plan shall be for a period of six years. Capital Asset Management 1. The City will maintain its capital assets at a level adequate to protect the City' s capital investment and to minimize future maintenance and replacement costs. The budget will provide for adequate maintenance and orderly replacement of capital assets from current revenues where possible. 2. The capitalization threshold used in determining if a given asset qualifies for capitalization is $5,000 per item with a useful life of over one year. 3. The City Departments will conduct on a continuous, monthly, annually, multi-year basis or performed in sections over a multi-year cycle a physical count/inspection of capital assets. 4. Adequate insurance will be maintained on capital assets. VI. Accounting Policies Comply with prevailing federal, state, and local statutes and regulations. Conform to a comprehensive basis of accounting in compliance with Washington State statutes, Budgeting, Accounting, and Reporting System (BARS), and with generally accepted accounting principles (GAAP) as promulgated by the Governmental Accounting Standards Board (GASB,) and the Government Finance Officers Association (GFOA) where applicable. 1. The City will maintain expenditure categories according to state statute and administrative regulation. The City will use the "Budgeting, Accounting & Reporting System" (BARS) prescribed by the State Auditor for its revenue and expenditure classification. 2. Quarterly budget reports showing the current status of revenues and expenditures may be prepared and distributed to council, and appropriate staff and management personnel in a timely manner and made available for public inspection. 3. Electronic financial systems will be maintained to monitor revenues, expenditures, and program performance on an ongoing basis. 4. The Annual Financial Report will be prepared and submitted to the State Auditor's Office no later than 150 days from the end of the preceding fiscal year. Page 82 of 103 Resolution No. XXX-20 Exhibit A 7 5. The Annual Financial Report will be prepared on the basis of accounting that demonstrates compliance with Washington State statutes and the BARS manual prescribed by the State Auditor, which is a comprehensive basis of accounting other than generally accepted accounting principles. The report will provide full disclosure of all financial activities and related matters. 6. The City's budget should satisfy criteria as a financial and programmatic policy document, as a comprehensive financial plan, as an operations guide for all organizational units, and as a communications device for all significant budgetary issues, trends and resources. It should be a goal of the Finance Department to build a budget document that is readable, transparent, and worthy of distinguished budget presentation program. VII. Debt Policies Establish guidelines for debt financing that will provide needed capital equipment and infrastructure improvements while minimizing the impact of debt payments on current revenues. 1. The City will not use long-term debt to pay for current operations. The use of bonds or certificates of participation will only be considered for significant capital and infrastructure improvements. 2. The term of the debt shall never extend beyond the useful life of the improvements to be financed. 3. General Obligation debt should be prioritized for governmental activities; however, it could be considered for enterprise activities as deemed appropriate and in the best interest of the City by City Council. 4. The general policy of the City is to establish debt repayment schedules that use level annual principal and interest payments. 5. Interest earnings on bond proceeds will be limited to 1) funding the improvements specified in the authorizing bond ordinance, or 2) payment of debt service on the bonds. 6. Proceeds from debt will be used in accordance with the purpose of the debt issue. Funds remaining after the project is completed will be used in accordance with the provisions stated in the bond ordinance that authorized the issuance of the debt. 7. The City will use the most prudent methods of acquiring capital outlay items, including, but not limited to, the use of lease-purchase agreements. In no case will the City lease- purchase equipment whose useful life is less than the term of the lease. 8. The City will maintain its bond rating at the highest level fiscally prudent, so that future borrowing costs are minimized and access to the credit market is preserved. The City will encourage and maintain good relations with financial bond rating agencies and will follow a policy of full and open disclosure. Page 83 of 103 Resolution No. XXX-20 Exhibit A 8 VIII. Cash Management and Investment Policies Manage and invest the City's operating cash to ensure its legality, safety, provide for necessary liquidity, avoid imprudent risk, and optimize yield. 1 . Cash and Investment programs will be maintained in accordance with City regulations and will ensure that proper controls and safeguards are maintained. City funds will be managed in a prudent and diligent manner with an emphasis on safety of principal, liquidity, and financial return on principal (yield), in that order. 2. The City will develop and adopt an investment policy. 3. The City will develop and maintain written guidelines on cash handling, accounting, segregation of duties, and other financial matters. 4. All financial transactions of the city fall under the responsibility and control of the Finance Director; except the financial duties of the municipal court as prescribed by Washington Court Rule, General Rule 29, (GR29) which shall be the responsibility of the Presiding Judge of the Municipal Court. 5. Access to monthly reports will be provided to all departments and prepared and distributed to the City Council showing cash position, and year-to-date budgeted and actual expenditures. 6. The City will conduct annual reviews of its internal controls and cash handling procedures. IX. Reserve Policies Maintain the reserves, contingencies, and ending fund balances of the various operating funds at levels sufficient to protect the City's credit as well as its financial position from emergencies. General Fund and Enterprise Reserves The City recognizes that reserves need to be acquired over multiple budget cycles and require discipline and a strong commitment to maintain. Reserves are a necessary component of the overall finance management strategy of the City. Reserves serve a variety of purposes. 1) Ensuring adequate resources for cash flow 2) Mitigating short-term effects of revenue shortages 3) Leveraging beneficial opportunities 4) Page 84 of 103 Providing the ability to exercise flexible financial planning, and 5) To address unforeseen emergencies or changes in conditions. The City will strive to maintain the following two tier reserve structure: Working Capital General Fund (Current Expense, Street): The City's goal shall be to maintain a minimum unreserved ending fund balance of at least 12.5% (45 days) of annual budgeted operating revenues per fund (rounded to nearest thousand) with the intent to move toward an ending fund balance target of 25% (90 days) as funding allows. Ending Fund balance may be used to cover cash flow needs caused by the timing of the ad valorem tax cycle collections. Ending fund balance reserve is considered working capital of the fund. Enterprise Fund’s (Water, Sewer, Storm): The City's goal shall be to maintain a minimum unreserved ending fund balance of at least 17% (60 days) of annual budgeted operating revenues per fund (rounded to the nearest thousand) with the intent to move toward an ending fund balance target of 25% (90 days) as funding allows. Ending Fund balance may be used to cover cash flow needs. Ending fund balance reserve is considered working capital of the fund. Stabilization Fund General Fund (Current, Street): A City Stabilization amount of 17% (~ 60 days) of its annual allocated General Fund expenditure budget may be maintained annually as resources allow. Funding may come from one time revenues, monthly budgeted amounts from general revenues, and transfers from ending fund balance as authorized by Council. Enterprise Funds (Water, Sewer, Storm): A City Stabilization amount of 25% of its annual allocated expenditure budget per fund may be maintained annually as resources allow. Funding may come from one-time revenues, monthly budgeted amounts from operation revenues, and transfers from ending fund balance as authorized by Council. Stabilization reserves shall be used if all efforts have been exhausted to fund a qualifying event and no reasonable budget adjustments are available to continue to provide essential services to the public. The Finance Director must quantify, document and present the significance of the qualifying event. Authorization for spending stabilization reserves requires a simple majority vote of the City Council. Qualifying Events: Page 85 of 103 • The State of Washington or Federal government formally declares a disaster or emergency. • A natural or urgent event that jeopardizes public safety, impedes commerce, or threatens additional damage to City infrastructure. • Unforeseen events or situation outside of the scope of contingency planning or planned normal course of government operations. • An act of war, terrorism, or declaration of Martial law. Page 86 of 103 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: November 10, 2020 Subject: Adoption of a Resolution Accepting the Prepared by: Brandy Rinearson, MMC Lodging Tax Advisory Committee’s City Clerk Recommendation for 2021 Funding Atty Routing No.: N/A Allocation Atty Review Date: N/A Summary: Each year, staff solicits applicants to apply for Lodging Tax funds that are used for tourism marketing and festival and events. The funds are used to attract tourists to the City. At the August 10, 2020, Economic Development/Tourism committee meeting, committee members and staff discussed options on how the City should proceed in the funding allocation process for 2021, due to the amount of estimated revenue coming in lower than anticipated and with a significant amount of funds for 2020 not being expended. At the August 18, 2020, City council meeting, Council directed staff to move forward with the Lodging Tax application process for 2021, but only for tourism marketing with the understanding that the funds will be reviewed in early 2021. After the review, the Council will determine if the City will open the application process for Festivals and Events. The total amount of funds being allocated for 2021 is $100,000. On October 26, 2020, the Lodging Tax Advisory Committee heard presentations from applicants requesting funds for 2021 tourism marketing. On October 27, 2020, the Committee met to discuss the applications received and to provide a recommendation to the Council on how funds should be awarded. During the deliberation process, the committee understood that some funds needed to be reserved for Event and Festivals. The funds allocated below are consistent with past allocations for Tourism Marketing. The Committee’s recommendation is as follows: Organization FY’s 2021 Funds Requested Committee Recommendation Fathoms O’ Fun Festival-Tourism Marketing $3,500 $3,500 Port Orchard Bay Street Association-Tourism Marketing $12,450 $8,000 Port Orchard Chamber of Commerce-Explore Port Orchard-Tourism Marketing $10,000 $6,000 Port Orchard Chamber of Commerce-Tourism Information/Visitor Center $14,000 $10,000 Sidney Museum & Arts Association-Tourism Marking $5,000 $5,000 Visit Kitsap Peninsula- Tourism Marketing $24,000 $20,000 Total $68,950 $52,500 Page 87 of 103 Business Item 7D Page 2 of 2 Recommendation: Staff recommends adoption of a resolution accepting the lodging tax recommendations for 2021, as presented. Relationship to Comprehensive Plan: None. Motion for consideration: I move to adopt a resolution, accepting the Lodging Tax Advisory Committee’s recommendation for the 2021 funding allocation, as presented. Fiscal Impact: $100,000 has been budgeted in the 2021 expenditure portion of the 2021/2022 Biennial Budget. Alternatives: N/A Attachments: Resolution. Page 88 of 103 RESOLUTION NO. _____ A RESOLUTION OF THE CITY OF PORT ORCHARD, WASHINGTON, ACCEPTING THE LODGING TAX ADVISORY COMMITTEE’S RECOMMENDATION FOR 2021 FUNDING ALLOCATION. WHEREAS, on September 23, 2020, October 2, 2020, and October 8, 2020, notices were published notifying the public that the City was accepting proposals for the Hotel/Motel Lodging Tax funding applications for 2021; and WHEREAS, proposals were due to the City Clerk no later than October 14, 2020; which 6 applications were received; and WHEREAS, on October 26, 2020, the Lodging Tax Advisory Committee met and heard presentations from all applicants; and WHEREAS, on October 27, 2020, the Lodging Tax Advisory Committee met to review the applications and provide their recommendations to City Council; now, therefore, THE CITY COUNCIL OF THE CITY OF PORT ORCHARD, WASHINGTON, HEREBY RESOLVES AS FOLLOWS: THAT: The City Council accepts the Lodging Tax Advisory Committee’s 2021 lodging tax recommendations as follows: Organization FY’s 2021 Funds Requested Committee Recommendation Fathoms O’ Fun Festival- Tourism Marketing $3,500 $3,500 Port Orchard Bay Street Association-Tourism Marketing $12,450 $8,000 Port Orchard Chamber of Commerce-Explore Port Orchard-Tourism Marketing $10,000 $6,000 Port Orchard Chamber of Commerce-Tourism Information/Visitor Center $14,000 $10,000 Sidney Museum & Arts Association-Tourism Marking $5,000 $5,000 Visit Kitsap Peninsula-Tourism Marketing $24,000 $20,000 Total $68,950 $52,500 PASSED by the City Council of the City of Port Orchard, SIGNED by the Mayor Pro-Tem and attested by the City Clerk in authentication of such passage this 10th day of November 2020. Jay Rosapepe, Mayor Pro-Tem ATTEST: Brandy Rinearson, MMC, City Clerk Page 89 of 103 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: November 10, 2020 Subject: Approval of a Contract with South Kitsap Fire Prepared by: M. Brown and Rescue to Share Funding for the Community Police Chief Health Navigator Position Atty Routing No.: N/A Atty Review Date: N/A Summary: The police department is recommending a new FTE position within the department to serve as a Community Health Navigator. The position is included in the 2021-2022 budget for approval by the Council as part of the overall biennial budget. The intent of the ILA is to have the process established for implementation immediately at the beginning of 2021. The joint Community Health Navigator will be an adaption of the current Navigator position that is under contract with the City of Poulsbo. The new Navigator position will continue its work with the police department and be assigned half-time to the fire department. The Navigator will engage with individuals identified by first responders as needing intervention and connect them to resources and social services. The Navigator will also facilitate individuals across all involved systems of care. The goal of the program will also be to improve coordination with first responders and service providers such as mental health and chemical dependency counselors, housing providers, and other regional services. The goal is to reduce the use of emergency services by guiding individuals to necessary resources that may provide longer term assistance. This contract covers an upcoming FTE position and provides the framework for successful implementation of the program. Recommendation: Staff recommends the Council approve the ILA between the City of Port Orchard and South Kitsap Fire Rescue to share funding for the Community Health Navigator position. Relationship to Comprehensive Plan: N/A Motion for consideration: I move to authorize the Mayor Pro-Tem to execute the interlocal agreement between the City of Port Orchard and South Kitsap Fire Rescue to share funding for the Community Health Navigator position. Fiscal Impact: $65,000 annually. Alternatives: Not approve the ILA and provide additional guidance. Attachments: ILA between City of Port Orchard and South Kitsap Fire Rescue. Page 90 of 103 INTERLOCAL AGREEMENT BETWEEN THE CITY OF PORT ORCHARD AND KITSAP COUNTY FIRE PROTECTION DISTRICT NO. 7 (SOUTH KITSAP FIRE AND RESCUE) REGARDING A COMMUNITY HEALTH NAVIGATOR PROGRAM THIS AGREEMENT (“Agreement”) is entered into between the City of Port Orchard (“the City”) and Kitsap County Fire Protection District No. 7, South Kitsap Fire and Rescue (“the District”) (individually a “Party” and collectively the “Parties”), under the authority of the Interlocal Cooperation Act, RCW 39.34, for the purposes set forth herein. WHEREAS, the City and the District believe there is a need for a Community Health Navigator Program in South Kitsap; and WHEREAS, many individuals in the South Kitsap community rely on emergency services (police and fire) for low acuity calls that could be handled or resolved by alternative resources if those individuals were aware of available alternative resources; and WHEREAS, Community Health Navigators build effective working relationships with individuals after they have been in contact with First Responders, by providing support, education and assistance to those individuals to help them navigate the complex health care system and by informing those individuals of the resources available to them; and WHEREAS, the City and District believe that if individuals in the South Kitsap community had a resource such as a Community Health Navigator Program, low acuity calls would be reduced, thus allowing First Responders to better respond to life-threatening emergencies; and WHEREAS, the City and the District desire to cooperate and commence a Community Navigator Program that serves the City’s Police Department and the District; and WHEREAS, the Parties desire to share the costs for the new Community Health Navigator Program and have come to a mutual understanding as to their responsibilities and wish to set forth that understanding in writing; NOW, THEREFORE, THE PARTIES HERETO AGREE AS FOLLOWS: 1. PURPOSE OF AGREEMENT. The purpose of this Agreement is to set forth the mutual understanding of the Parties as to their respective obligations relating to a Community Health Navigator Program. Page 91 of 103 Page 2 of 6 2. DUTIES AND RESPONSIBILITIES OF THE CITY. 2.1. The Parties agree that the City will be responsible for hiring an individual who will be responsible for the new Community Health Navigator Program established by this Agreement. The City may suspend provision of services for the Program whenever the position is vacant. 2.2. The City agrees that this individual’s sole responsibility shall be as the new Community Health Navigator. The Community Health Navigator’s responsibilities are more fully described in the job description attached hereto as Exhibit A. 2.3. The Community Health Navigator shall be an employee of the City at all times, and as such, the City shall retain all rights, duties and obligations as an employer and shall be responsible for all compensation, benefits and resources associated with the employment of that individual. 2.4. The City shall be responsible for the oversight of the Community Health Navigator and shall supervise that individual’s daily activities. The Community Health Navigator is subject to all City administrative policies and is terminable at the City’s discretion. 2.5. The City agrees that the Community Health Navigator is available for the District’s Community Health Navigator Program needs for at least 20 hours per week. The Parties acknowledge, however, that the number of hours worked for the District may fluctuate depending on the Navigator’s workload. 2.6. The City shall sign and abide by the terms of a Business Associate Agreement to allow the Parties to share HIPAA protected information. 2.7. The City will provide monthly reports to the District regarding the work performed by the Community Health Navigator on behalf of the District. The Parties will mutually agree as to the form and content of the report. 3. DUTIES AND RESPONSIBILITIES OF THE DISTRICT. 3.1. The District agrees to pay for fifty percent (50%) of those costs associated with the total cost of compensation for the individual hired by the City as the new Community Health Navigator. This amount shall not exceed $65,000.00 annually, provided, after the first year, the cap may increase on an annual basis by an amount equal to the Seattle-Tacoma-Bellevue CPI-U. if requested by the City. In the event that this Agreement is terminated early, the District shall only be responsible for its pro-rated share of the cost of the Community Health Navigator. 3.2. The District shall provide transportation for the Community Health Navigator for work performed by the Community Health Navigator on behalf of the District, where travel is necessary in the discretion of the District. 3.3. The District shall provide annual HIPAA training for the Community Health Navigator. 4. DURATION OF AGREEMENT. This Agreement shall take effect upon the date it is (1) executed fully by both Parties and (2) either filed with the County Auditor or posted on at Page 92 of 103 Page 3 of 6 least one of the Parties’ websites in accordance with Section 16 below (“Effective Date”). This Agreement shall remain in full force and effect for three (3) years starting on the Effective Date, unless or until earlier terminated as provided for in Section 5. 5. TERMINATION. Either Party may terminate this Agreement at any time by giving the other Party ninety (90) days advance written notice of the intent to terminate; PROVIDED that the provisions of Paragraphs 6 and 8 shall survive the termination of this Agreement. 6. INSURANCE/MUTUAL INDEMNIFICATION. Each Party shall carry appropriate liability and property damage insurance to cover any loss occasioned by the negligent actions of the acting Party during the performance of any obligation pursuant to this Agreement, in the types of coverage and amounts as follows: • Commercial General Liability in an amount not less than one million dollars ($1,000,000) per occurrence and two million dollars ($1,000,000) aggregate. • Automobile Liability in an amount not less than one million dollars ($1,000,000) per occurrence. • A Certificate of Insurance for worker’s compensation coverage. The insurance requirements herein shall be deemed satisfied by evidence of a Party’s membership in a self-insurance pool. Failure on the part of any Party to maintain the insurance as required shall constitute a material breach of this agreement. Each Party also agrees to indemnify, defend and hold harmless the other Party and its elected and appointed officials, officers, employees and agents, from and against all claims, losses, damages, suits and expenses, including reasonable attorneys’ fees and costs, to the extent they arise out of, or result from, the negligence or willful misconduct of the indemnitor or its elected or appointed officials, officers, employees or agents in the performance of this Agreement, provided the District shall indemnify and hold harmless the City for fifty percent (50%) of any settlement amount, damages, losses, costs, penalties and fees, including attorney fees, of any nature or kind arising out of the acts or omissions of the Community Health Navigator while performing duties on behalf of the District. Solely for purposes of this indemnification provision, each Party waives the immunity it would otherwise enjoy under RCW Title 51 (Industrial Insurance) and acknowledges that this waiver was mutually negotiated by the Parties. Should a court of competent jurisdiction determine that this Agreement is subject to RCW 4.24.115, then, in the event of liability for damages arising out of bodily injury to persons or damages to property caused by or resulting from the concurrent negligence of the District and the Page 93 of 103 Page 4 of 6 City, their officers, officials, employees, and volunteers, the City’s and/or District’s liability hereunder shall be only to the extent of the City’s and/or District’s negligence. 7. PAYMENT. The District shall pay its portion of the cost associated with the Community Health Navigator within 30 days of issuance of an invoice by the City. An invoice will be issued by the City annually for the duration of the Agreement. 8. REVIEW MEETINGS. Every three months, and more often if deemed necessary, the Parties shall meet to discuss the development and implementation of the Community Health Navigator Program. The Parties shall review the work being performed by the Community Health Navigator, review successes and failures and determine whether any changes need to be made to the program. The Community Health Navigator shall remain an employee of the City at all times, and the City shall retain the right and duty to supervise and direct the Community Health Navigator at all times. 9. NO JOINT ENTITY OR PROPERTY. No joint entity or enterprise is created by this Agreement and no property will be acquired by the Parties under this Agreement. Each Party will retain independent title to any property acquired by that Party and used in the performance of the duties and responsibilities provided herein. 10. ADMINISTRATION. This Agreement shall be administered by the City’s Mayor and the District’s Fire Chief. 11. NOTICE. Any notices to be given under this Agreement shall be delivered in person or mailed to the Parties at the following addresses: To the City: Mayor Rob Putaansuu City of Port Orchard 216 Prospect St. Port Orchard, WA 98366 To the District: Chief Jeff Faucett Kitsap County Fire Protection District No. 7 (SKFR) 1974 Fircrest Dr SE Port Orchard, WA 98366 or to such other persons or addresses as may be provided, from time to time, by the Parties. Notices given by mail shall be deemed received three (3) days after the same are placed in the U.S. Mail, postage prepaid, addressed as provided in this section. Page 94 of 103 Page 5 of 6 12. SEVERABILITY. In the event that any section, sentence, clause, or paragraph of this Agreement is held to be invalid by any court of competent jurisdiction, the remainder of this Agreement shall not be affected and shall remain in full force and effect. 13. NO WAIVER. Any Party’s failure to insist upon strict performance of another Party’s covenants or agreements, or to exercise any rights, shall not be deemed a waiver or relinquishment by such Party, and such covenants, agreements and rights shall continue in full force and effect. 14. INTEGRATED AGREEMENT. This Agreement constitutes the entire agreement and understanding between the Parties regarding the subject matter hereof and may be modified only by a written instrument signed by both Parties hereto, and duly authorized by the governing body for each Party. There are no other verbal or other agreements that modify or affect this Agreement. 15. COOPERATION / DISPUTES. The Parties shall strive to cooperate with one another in all reasonable respects and at all reasonable times so the terms and spirit of this Agreement may be fully implemented for the benefit of both Parties and their constituents. If a dispute cannot be cooperatively resolved, this Agreement shall be deemed to be made and construed in accordance with the laws of the State of Washington, and jurisdiction and venue for any action arising out of this Agreement shall be in Kitsap County, Washington. 16. FILING OF AGREEMENT. Parties shall file a certified copy of this Agreement with the Kitsap County Auditor or, alternatively, post the Agreement on each Party’s website before the Agreement becomes effective, as required by RCW 39.34.040. 17. REASONABLE INTERPRETATION. For the reason that both Parties hereto have had ample opportunity to provide input for the preparation of this Agreement, it shall not be interpreted in favor of or against either Party. Rather, it shall be provided with a reasonable interpretation to the end that its terms and intent may be fully and reasonably implemented. CITY OF PORT ORCHARD KITSAP COUNTY FIRE PROTECTION DISTRICT NO. 7 (SKFR) Mayor Pro-Tem Jay Rosapepe Chairman Gerald Preuss Page 95 of 103 Page 6 of 6 Date: Date: ATTEST/AUTHENTICATED: APPROVED AS TO FORM: Attorney for the District APPROVED AS TO FORM: City Attorney Page 96 of 103 City of Port Orchard Council Meeting Minutes Regular Meeting of October 27, 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 Absent 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: Finance Director Crocker, Community Development Director Bond, Public Works Director Dorsey, Utility Manager J. Brown, City Attorney Archer, Police Chief M. Brown, HR Coordinator Lund, 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 Diener, seconded by Councilmember Lucarelli, to approve the agenda as presented. The motion carried. 3. CITIZENS COMMENTS There were no citizen comments. Page 97 of 103 Minutes of October 27, 2020 Page 2 of 5 4. CONSENT AGENDA A. Approval of Voucher Nos. 80705 through 80809, including bank drafts in the amount of $820,478.37 and EFT’s in the amount of $ 33,546.44 totaling $854,024.81. B. Approval of Payroll Check Nos. 80701 through 80704 including bank drafts and EFT’s in the amount of $146,272.16; and Direct Deposits in the amount of $183,725.29 totaling $329,997.45. MOTION: By Councilmember Clauson, seconded by Councilmember Rosapepe, to approve the consent agenda as published. The motion carried. 5. PRESENTATION A. South Kitsap Community Event Center-Site Section Criteria Steve Rice, Rice Fergus Miller, provided a presentation on the Site Selection Criteria for the South Kitsap Community Events Center which included important criteria, potentially negative criteria, and most important criteria. 6. PUBLIC HEARING A. Property Tax Levy and Revenue Sources Current Expense Budget 2021-2022 and Satisfying the Requirements of RCW 84.55.120 Mayor Putaansuu opened the public hearing at 7:05 p.m. Finance Director Crocker provided a 2021 Revenue Sources Presentation, and a brief discussion was held with the Council and Mayor regarding details of the presentation. There being no more testimony, Mayor Putaansuu closed the public hearing at 7:20 p.m. 7. BUSINESS ITEMS A. Adoption of an Ordinance Setting the Amount of Property Tax to be Levied for the Year 2021 Pursuant to RCW 84.55.120 MOTION: By Councilmember Ashby, seconded by Councilmember Clauson, to adopt an ordinance setting the 2021 property tax levy and the amount of property taxes to be raised for the budget year of 2021. The motion carried. (Ordinance No. 031-20) Page 98 of 103 Minutes of October 27, 2020 Page 3 of 5 B. Adoption of a Substantial Need Ordinance for Property Taxes to be Levied for the Year 2021 Pursuant to RCW 84.55.0101 MOTION: By Councilmember Clauson, seconded by Councilmember Rosapepe, to adopt an ordinance finding a substantial need to increase property taxes levied by one percent(1%) and to set the levy limit at one hundred one percent (101%) to ensure adequate funding for City services in calendar year 2021. The main motion carried. (Ordinance No. 032-20) C. Adoption of an Ordinance Approving the 2020 Port Orchard Municipal Code Title 20 Unified Development Code “Housekeeping” Amendments MOTION: By Councilmember Lucarelli, seconded by Councilmember Diener, to adopt an ordinance adopting minor corrections, clarifications, and updates to Title 20 POMC. The motion carried. (Ordinance No. 033-20) D. Approval of an Interlocal Agreement with the South Kitsap School District for the School Resource Officer Program MOTION: By Councilmember Rosapepe, seconded by Councilmember Ashby, to authorize the Mayor to sign the ILA between the South Kitsap School District and the City of Port Orchard for the 2020- 2021 school year. The motion carried. (Contract No. 084-20) E. Approval of a Memorandum of Understanding with the Police Guild Representing Patrol Regarding Starting Pay of Lateral Police Officer Applicants MOTION: By Councilmember Diener, seconded by Councilmember Clauson, to authorize the Mayor to sign a Memorandum of Understanding with the Police Guild representing Patrol Officers to revise the language in Article 8.1 of the bargaining agreement related to starting pay. The motion carried. (Amendment to Contract No. 046-19) F. Approval of the October 13, 2020 Council Meeting Minutes MOTION: By Councilmember Clauson, seconded by Councilmember Lucarelli, to approve the Council Page 99 of 103 Minutes of October 27, 2020 Page 4 of 5 meeting minutes of October 13th. The motion passed. Councilmember Rosapepe abstained. MOTION: By Councilmember Clauson, seconded by Councilmember Diener, to approve the excusal of Councilmember Cucciardi for personal reasons this evening. The motion carried. 8. DISCUSSION ITEMS (No Action to be Taken) A. Reservoir Cleaning Video Utility Manger Jacki Brown shared a video cleaning the City’s reservoirs. Council Direction: No direction was given to staff. 9. REPORTS OF COUNCIL COMMITTEES Mayor Putaansuu reported the Finance committee may meet November 10th and November 23rd depending on the outcome of tomorrow’s budget meeting. Councilmember Chang reported on the October 26th Economic Development and Tourism committee meeting. Councilmember Lucarelli reported on the October 20th Utilities committee meeting. The next meeting is scheduled for November 17th. She also reported on the Festival of Chimes and Lights activities associated with the event. Councilmember Diener reported the Land Use committee is scheduled to meet November 4th. Councilmember Ashby reported on the October 27th Transportation committee meeting. Councilmember Rosapepe reported on the October 26th and October 27th Lodging Tax Advisory committee meetings. Mayor Putaansuu reported the department director’s budget meetings are scheduled for tomorrow and gave an update on the Department of Emergency Management and COVID-19. Councilmember Ashby reported on the Peninsula RTPO (Regional Transportation Planning Organization), and KRCC (Kitsap Regional Coordinating Council) meetings. 10. REPORT OF MAYOR Page 100 of 103 Minutes of October 27, 2020 Page 5 of 5 Mayor Putaansuu reported on the following: • Draft legislative priorities; • Budget; • Bay Street Pedestrian Pathway; and • Selection committee for the Event Community Center. 11. REPORT OF DEPARTMENT HEADS City Attorney Archer reported the moratorium on utility shut offs has been extended until the end of the year and we are expecting an extension on the OPMA/PRA (Open Public Meetings Act/Public Records Act) proclamation. Police Chief Brown reported on windstorm activities and provided an update on the Strategic Advisory committee. Finance Director Crocker reported on the budget, noting we are almost there. HR Coordinator Lund reported she is working on Laserfiche. City Clerk Rinearson reported on Laserfiche and documents. Community Development Director Bond reported on the retiring building inspector, permitted new- single family residences, and new apartment complexes. 12. CITIZEN COMMENTS There were no citizen comments. 13. EXECUTIVE SESSION There was no executive session. 14. ADJOURNMENT The meeting adjourned at 8:18 p.m. No other action was taken. Audio/Visual was successful. Brandy Rinearson, MMC, City Clerk Jay Rosapepe, Mayor Pro-Tem Page 101 of 103 City of Port Orchard 216 Prospect Street, Port Orchard, WA 98366 (360) 876-4407 • FAX (360) 895-9029 Agenda Staff Report Agenda Item No.: Discussion Item 8A Meeting Date: November 10, 2020 Subject: Use of the Van Zee Park by a Recreational Prepared by: Brandy Rinearson, MMC Sports Organization City Clerk Atty Routing No.: N/A Atty Review Date: N/A Summary: Wade Schmidt, Recreation Coaching Director of the South Kitsap Soccer Club, reached out to the City to possibly lease a portion of Van Zee park to use as a field for soccer practices. They are needing a field that has lights. After discussion with the Land Use committee, staff was directed to get the length of the lease, how often they would be practicing, and how many teams would be using the field at once. Upon getting the information, the committee instructed staff to bring straight to council for their consideration. Staff reached out to Mr. Schmidt, who provided the requested additional information: If we can use Van Zee, it would be for 2-3 hours per night Mon-Thu. But the field condition and hourly cost are the two unknowns. We are a non-profit organization that is all volunteers. We don’t have deep pockets for expensive fields and our insurance would have to inspect the field to ensure the children will not twist ankles or trip over uneven ground. We have 1 or 2 teams per night that might use the field. If we decide the field is playable, the insurance will cover it, and we can afford it, we would likely use it Nov-Dec, and possibly use it Jan-Mar. Please understand that I am not committing the Soccer Club to using Van Zee at this time. I'm looking at options and possibilities, and the Soccer Club Board of Directors will determine what options we will use depending on field size, condition, and cost. Staff is looking for direction on if the Council wishes to lease the field/park to the sports organization and if so, what the monthly lease amount would be for. Recommendation: N/A Relationship to Comprehensive Plan: None. Fiscal Impact: To be determined. Alternatives: Do not allow use of parks for this type of activity. Attachments: Approximate cost for light usage in 2019 Page 102 of 103 Brandy Rinearson From: Sent: To: Cc: Subject: Attachments: September: October: November: Tony Lang Tuesday, October 20, 2020 9:36 AM Mark Dorsey; Brandy Rinearson Jenine Floyd; Kara Sexton; Patti Saltsgaver RE: Use of Givens Park Baseball Field at night 2019 Van Zee Usage.pdf See attached l'm not sure if you need this much information but here you go, ln 2019 88KWh used at .O7cents per KWh= $0.f0 332KWh used at .O7cents per KWh= |ZE.Z+ 364KWh used at.OTcents per KWh= S25.4S Total 5S+.gA The last group that used the lighting used it for a total of 50 hours for a total of 784KWh at .07 per KWh. We would need the actual price per KWh from Patti so we can update billing rate appropriately. lt would be nice to know as I can change the rate in the Musco lighting system to get averages and totals Tong Lang Operotions Manager City of Port Orchard 216 Prospect St. Port OrchorC, IMA 98366 ,D-360.535.2494 Page 103 of 103