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Home My WebLink About10/28/2025 - Regular - Packet0�84 Meeting Location: Contact us: O�CHARD Council Chambers Phone (3potorchad 216 Prospect Street cityhall@portorchardwa.gov Port Orchard, WA 98366 www.portorchardwa.gov City Council Regular Meeting Tuesday, October 28, 2025 6:30 PM Pursuant to the Open Public Meetings Act, Chapter 42.30 RCW, the City Council is conducting its public meeting in a hybrid format with options for in -person attendance in the Council Chambers at City Hall or remote viewing and participation via Zoom (link below). The meeting is streamed live on the City's YouTube channel, click here. Remote Access Link: https:Hus02web.zoom.us/j/83632967319 Zoom Meeting ID: 836 3296 7319 Zoom Call -In: 1 253 215 8782 Guiding Principles Are we raising the bar in all of our actions? Are we honoring the past, but not living in the past? Are we building positive connections with our community and outside partners? Is the decision -making process building a diverse, equitable, and inclusive community? 1. Call to Order A. Pledge of Allegiance 2. Approval of Agenda 3. Citizen Comments (This is an opportunity for citizens to address the City Council on agenda items that are not associated with a Public Hearing on this agenda. Comments are limited to 3 minutes. Please approach the podium or raise your Zoom hand if viewing remotely and wait to be recognized by the Mayor. Then, state your name for the official record. If you are attending remotely by Zoom via telephone, enter *9 from your keypad to raise your hand.) 4. Consent Agenda (Items listed are to be considered routine in nature and are grouped together in a single motion. A Councilmember may remove an item for separate consideration upon request. In the event of such request, the item is placed under Business Items.) A. Approval of Vouchers and Electronic Payments B. Approval of Payroll and Direct Deposits C. Adoption of a Resolution Adopting the 2026 Legislative Agenda (Wallace) October 28, 2025 Meeting Agenda D. Adoption of a Resolution Confirming Mayoral Appointments to Boards, Committees and Commissions (Wallace) E. Approval of Amendment No. 3 to Contract No. 042-15 with the South Kitsap Western Little League for a Real Property Lease (Ryan) F. Approval of Amendment No. 3 to Contract No. 043-15 with the South Kitsap Pee Wee Association for a Real Property Lease (Ryan) G. Approval of a Lease Agreement with South Kitsap Soccer Club, SK United, Youth Non - Profit Soccer Club for Use of a Portion of Van Zee Park (Ryan) S. Presentation A. Community Event Center Update - Rice Fergus Miller (Dean Kelly) 6. Public Hearing (Accepting public testimony from citizens limited to the specific item listed) A. Multi -Family Tax Exemption Ordinance Public Hearing (Bond) 7. Business Items A. Adoption of an Ordinance Setting the amount of Property Tax to be levied for Year 2026, Pursuant to RCW 84.55.120 (Crocker) B. Adoption of an Ordinance on the Mid -Biennial Review and Amendments to the 2025- 2026 Biennial Budget (Crocker) C. Adoption of a Resolution Authorizing the Mayor to Execute a Contract with Skillings, Inc. for the Ruby Creek Culvert Replacement Project (Ryan) 8. Discussion Items (No Action to be Taken) 9. Reports of Council Committees (Three council members serve on the committee with staff to make collaborative recommendations about work product. Staff then prepares the items for full Council consideration based on the Committee's discussion.) A. Council Advisory Committees 10. Report of Mayor 11. Report of Department Heads 12. Citizen Comments (This is an opportunity for citizens to address the City Council on any items that are not associated with a Public Hearing on this agenda. Comments are limited to 3 minutes. Please approach the podium or raise your Zoom hand if viewing remotely and wait to be recognized by the Mayor. Then, state your name for the official record. If you are attending remotely by Zoom via telephone, enter *9 from your keypad to raise your hand.) 13. Good of the Order 14. Executive Session Pursuant to RCW 42.30.110, the City Council may hold an executive session. The topic(s) and the session duration will be announced prior to the executive session. 15. Adjournment October 28, 2025 Meeting Agenda 2 ADA Requirements In compliance with the American with Disabilities Act, if you need accommodations to participate in this meeting, please contact the City Clerk's office at (360) 876-4407. Notification at least 48 hours in advance of meeting will enable the City to make arrangements to assure accessibility to this meeting. REMINDER: Please silence all electronic devices while City Council is in session. 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October 28, 2025 Meeting Agenda 3 0�4 City of Port Orchard ORCHARD 216 Prospect Street, Port Orchard, WA 98366 7� (360) 876-4407 • FAX (360) 895-9029 Agenda Staff Report Consent Agenda: Adoption of a Resolution Adopting the 2026 Legislative Agenda (Wallace) Meeting Date: October 28, 2025 Prepared By: Jenine Floyd, Deputy City Clerk Presenter: Brandy Wallace, MMC, CPRO, City Clerk Summary and Background: In order to lay a foundation for success for legislative action and/or funding, it is crucial that the City adopt a legislative agenda with ample time for the Mayor, Councilmembers, and GTH-GA lobbyists to communicate with the City legislative delegation prior to the start of the session. On September 23, 2025, Shelly Helder with Gordon Thomas Honeywell -Government Relations, the City's Lobbyists, provided a presentation on the 2025 Legislative Session and provided context for the upcoming 2026 Legislative Session. Discussion was held regarding the City's 2026 priorities. The list of items have been summarized, and therefore are attached to this staff report for consideration. Relationship to Comprenhensive Plan: N/A Recommendation: Staff recommends adoption of a Resolution, adopting the 2026 Legislative Agenda, as presented. Motion for Consideration: I move to adopt a Resolution, thereby approving the 2026 Legislative Agenda, as presented. Has item been presented to Committee/Work Study? If so, which one: N/A Fiscal Impact: N/A Alternatives: Do not adopt Resolution or modify. Attachments: RES_Legislative_Agenda.doc 2026 Legislative Agenda_FINAL.docx 4 RESOLUTION NO. A RESOLUTION OF THE CITY OF PORT ORCHARD, WASHINGTON, ADOPTING THE 2026 LEGISLATIVE AGENDA. WHEREAS, since 2011, the City has hired Gordon Thomas Honeywell Government Affairs to provide benefit to the citizens by having expertise and guidance of a lobbying firm that would assist the Mayor and staff in accomplishing the goals and objectives of the City to State legislators; and WHEREAS, each year, the firm continues to advocate for important legislative priorities of the City; and WHEREAS, on September 23, 2025, Shelly Helder with Gordon Thomas Honeywell - Government Relations, the City's Lobbyists, provided a presentation on the 2025 Legislative Session and provided context for the upcoming 2026 Legislative Session; and WHEREAS, a draft list of the Council's 2026 Legislative priorities has been prepared and is attached, labeled as Exhibit A, now, therefore; THE CITY COUNCIL OF THE CITY OF PORT ORCHARD, WASHINGTON, HEREBY RESOLVES AS FOLLOWS: THAT: The City of Port Orchard hereby adopts the 2026 Legislative Agenda, attached as Exhibit A. PASSED by the City Council of the City of Port Orchard, SIGNED by the Mayor and attested by the City Clerk in authentication of such passage this 28th day of October 2025. Robert Putaansuu, Mayor ATTEST: Brandy Wallace, MMC, City Clerk ORCHARD. CITY OF PORT ORCHARD 216 Prospect Street, Port Orchard, WA 98366 (36o) 876-4407 • Fax: (36o) 895-9029 cityh all(& cityofpo rtorchard. us www.cityofportorchard.us 2026 Legislative Priorities Old Clifton Road Water Intertie Project The Old Clifton Road Water Intertie Project is a key component of the City's Capital Improvement Plan. This project will connect Port Orchard's primary water system with the McCormick Woods system, enhancing system reliability, balancing supply and demand, and supporting future growth to ensure the City can meet long-term water needs. The estimated project cost is $6 million. The City has secured a $1 million loan from the Public Works Assistance Account (PWAA) to fund pre -construction activities such as engineering and permitting and is pursuing an additional loan to advance the project. To help minimize the overall loan amount and reduce impacts on ratepayers, the City respectfully requests $1 million in funding support toward the project cost. Sedgwick Roundabouts at SR-16/SR-160 Intersections While new transportation revenue in 2026 may be unlikely, the need for improvements at the Sedgwick Road (State Route 160) and State Route 16 interchange remains pressing. These routes are vital regional and local corridors, yet they are increasingly strained by traffic congestion and safety challenges. The City of Port Orchard has invested in temporary measures to provide short-term relief, but only long-term improvements will adequately address the challenges. The City proposes constructing two compact roundabouts at the SR-16 and SR-160 interchanges to improve traffic flow and safety. Prior to inflationary cost increase, the project was estimated at $6 million. Derelict Vessels The current state budget allocates $17.1 million to the Derelict Vessel Removal Program (DVRP). The City urges the Legislature to protect and maintain these dedicated funds. We also call on the Legislature to streamline processes for timely removal of hazardous vessels and support local governments in addressing this growing issue. This program is vital to public safety, environmental protection, and navigable waterways. On the Horizon: Orchard Street Plaza The Orchard Street Plaza will be a permanent public gathering space in downtown Port Orchard, designed to support community events, local businesses, and year-round public use. The plaza will provide a safe, accessible, and attractive destination for residents and visitors, strengthening the city's downtown core and enhancing quality of life. The total project cost is estimated at $3.5 million. While the City is advancing the project through planning and design, state funding support will be essential in later stages to bring the full vision of the plaza to life. 6 2026 Legislative Priorities City of Port Orchard Page 2 of 2 Other Important Topics Port Orchard will emphasize the importance of the following issues when they are brought up for discussion by the Legislature. Municipal Water Supply - Foster Pilot Program The City of Port Orchard was chosen by the state for a water resource mitigation pilot project to address municipal water supply challenges after the Foster decision. The City has invested over $1 million in City funds for this pilot project, which to date has not resulted in Ecology -approved water supply. The Legislature must adopt solutions providing municipalities a path to sustainable water permitting and usage, as required to accommodate growth under the Growth Management Act. Penalty on Vacant Buildings Cities need more tools to discourage landowners from allowing buildings to sit vacant or in disrepair. Oppose New Housing & Homelessness Mandates The Legislature has aggressively enacted new city requirements aimed at increasing housing supply and reducing homelessness. Port Orchard believes the Legislature should allow cities time to implement these new requirements and assess their impact before passing any new mandates. Transportation Revenue Port Orchard not only requires additional state investment in projects to address unsafe conditions and alleviate congestion, but also increased shared funding for city transportation needs. We will assess proposals that generate new revenue for transportation to determine whether they will help Port Orchard with these needs. Infrastructure Funding Cities require stable and growing infrastructure funding to meet the demands of the Legislature and our residents for: affordable housing, reliable utility services, public health and recreation, access to city services. The Legislature must protect and increase existing infrastructure programs relied upon by local governments. The City of Port Orchard supports the Association of Washington Cities' legislative agenda. 7 0�4 City of Port Orchard ORCHARD 216 Prospect Street, Port Orchard, WA 98366 7� (360) 876-4407 • FAX (360) 895-9029 Agenda Staff Report Consent Agenda: Adoption of a Resolution Confirming Mayoral Appointments to Boards, Committees and Commissions (Wallace) Meeting Date: October 28, 2025 Prepared By: Brandy Wallace, MMC, CPRO, City Clerk Presenter: Brandy Wallace, MMC, CPRO, City Clerk Summary and Background: Annually, the City Clerk's office reviews the expiring terms and/or vacancy of members of various boards, committees, and commissions to reports to the Mayor. The Mayor has reviewed the upcoming expirations and/or vacant members and is ready to appoint for the 2026 year. Once the Mayor has confirmed the members, it must be confirmed by the City Council. Therefore the Mayor is proposing to appoint the following: • Re -Appointment of Tyler McKlosky to Position No. 3, for a four-year term expiring December 31, 2029 to the Planning Commission. • Re -Appointment of Katie Stephenson, Position No. 1 for a three-year term expiring December 31, 2028; and an Appointment of Josh Johnson, Position No. 2 for a three-year term expiring December 31, 2028 to the Design Review Board. • Re -Appointments of Joseph Faulkner, Protection Engineering for a five-year term expiring December 31, 2030 and Robert Baglio, Alternate No. 1 for a five-year term expiring December 31, 2030 to the Building Board of Appeals. • Re -Appointment of Christine Stansbery to the Kitsap County Capital Grant Recommendation Committee for a one-year term expiring December 31, 2026. • Re -Appointment of Lee Hughes to the Kitsap County Services Grant Recommendation Committee for a one-year term expiring December 31, 2026. • Re -Appointment of Robert Putaansuu to the Peninsula Regional Transportation Planning Organization (PRTPO) for a one-year term expiring December 31, 2026. Relationship to Comprenhensive Plan: N/A Recommendation: Mayor Putaansuu recommends adoption of a Resolution confirming his appointments, as presented. Motion for Consideration: I move to adopt a resolution confirming the Mayor's appointments to the Boards, Committees, and Commissions, as set forth in the resolution presented. Has item been presented to Committee/Work Study? If so, which one: N/A 0 Fiscal Impact: None. Alternatives: Not confirm the Mayor's appointment and provide further direction. Attachments: Res_Board_and_Commission_Appointments.doc RESOLUTION NO. -25 A RESOLUTION OF THE CITY OF PORT ORCHARD, WASHINGTON CONFIRMING MAYORAL APPOINTMENTS TO THE PLANNING COMMISSION, DESIGN REVIEW BOARD, BUILDING BOARD OF APPEALS, KITSAP COUNTY GRANT AND CAPITAL GRANT RECOMMENDATION COMMITTEE AND PENINSULA REGIONAL TRANSPORATION PLANNING ORGANIZATION (PRTPO). WHEREAS, the Mayor is authorized to appoint volunteers to fill expired or vacant terms on various boards, committees, and commissions, upon confirmation of the City Council; and WHEREAS, the following boards, committees, and commissions have expiring terms; now therefore, THE CITY COUNCIL OF THE CITY OF PORT ORCHARD, WASHINGTON, HEREBY RESOLVES AS FOLLOWS: THAT: The City Council of the City of Port Orchard does hereby confirm the Re - Appointment of Tyler McKlosky to Position No. 3, for a four-year term expiring December 31, 2029 to the Planning Commission. THAT: The City Council of the City of Port Orchard does hereby confirm the Re - Appointment of Katie Stephenson, Position No. 1 for a three-year term expiring December 31, 2028; and an Appointment of Josh Johnson, Position No. 2 for a three-year term expiring December 31, 2028 to the Design Review Board. THAT: The City Council of the City of Port Orchard does hereby confirm the Re - Appointments of Joseph Faulkner, Protection Engineering for a five-year term expiring December 31, 2030 and Robert Baglio, Alternate No. 1 for a five-year term expiring December 31, 2030 to the Building Board of Appeals. THAT: The City Council of the City of Port Orchard does hereby confirm the Re - Appointment of Christine Stansbery to the Kitsap County Capital Grant Recommendation Committee for a one-year term expiring December 31, 2026. THAT: The City Council of the City of Port Orchard does hereby confirm the Re - Appointment of Lee Hughes to the Kitsap County Services Grant Recommendation Committee for a one-year term expiring December 31, 2026. THAT: The City Council of the City of Port Orchard does hereby confirm the Re - Appointment of Robert Putaansuu to the Peninsula Regional Transportation Planning Organization (PRTPO) for a one-year term expiring December 31, 2026. 10 Resolution No. -25 Page 2 of 2 PASSED by the City Council of the City of Port Orchard, APPROVED by the Mayor and attested by the City Clerk in authentication of such passage this 28t" day of October 2025. Robert Putaansuu, Mayor ATTEST: Brandy Wallace, MMC, City Clerk 11 0�4 City of Port Orchard ORCHARD 216 Prospect Street, Port Orchard, WA 98366 7� (360) 876-4407 • FAX (360) 895-9029 Agenda Staff Report Consent Agenda: Approval of Amendment No. 3 to Contract No. 042-15 with the South Kitsap Western Little League for a Real Property Lease (Ryan) Meeting Date: October 28, 2025 Prepared By: Sayre Thompson, PW Procurement Specialist Presenter: Denis Ryan, CPWP-M, CPRP, Public Works Director Summary and Background: South Kitsap Western Little League (SKWLL), a nonprofit youth sports organization, has a long-standing relationship with the City of Port Orchard and has historically used the ballfields at Givens Park for its baseball and softball programs. Their use of the site has been governed by Lease Agreement No. 042-15, originally executed in 2015. To support the continuation of their seasonal programming, the City and SKWLL propose an Addendum 3 to Lease Agreement No. 042-15. This addendum will extend the current lease for a three year term, beginning November 1, 2025 and ending November 1, 2028. The fields provide valuable recreational opportunities to local youth and serve as a key asset in the City's recreation system. Approval of this addendum will ensure the League can continue operations without disruption while maintaining a partnership with the City. Relationship to Comprenhensive Plan: Parks Recommendation: Staff recommends approval of the lease addendum, as presented. Motion for Consideration: I move to authorize the Mayor to execute an Addendum to Lease Agreement No. 042-15 with South Kitsap Western Little League, as presented. Has item been presented to Committee/Work Study? If so, which one: No Fiscal Impact: There is no direct fiscal impact associated with this action. Field maintenance and operations remain the responsibility of the lessee. City oversight and lease management will be handled within existing staff capacity. Alternatives: Do not approve and provide further guidance. Attachments: 042-15 - South Kitsap Western Little League - Amendment 3.pdf 12 City of Port Orchard Attn: Brandy Wallace 216 Prospect Street Port Orchard, WA 98366 ADDENDUM TO REAL PROPERTY LEASE AGREEMENT CONTRACT NO. 042-15 LESSOR: CITY OF PORT ORCHARD, a municipal corporation LESSEE: SOUTH KITSAP WESTERN LITTLE LEAGUE, INC., a nonprofit corporation RELATED DOCUMENT RECORDING NO.: N/A ABBREVIATED LEGAL DESCRIPTION OF LEASED PREMISES: NE 1/4 Sec. 35, T.24 N, R 1 E ASSESSOR'S TAX PARCEL NO. OF LEASED PREMISES: 4046-003-001-0001 THIS ADDENDUM amends the Lease Agreement dated March 25, 2015 between City of Port Orchard, a Washington municipal corporation as Lessor, and South Kitsap Western Little League, Inc., a nonprofit corporation as Lessee for those Premises described in the Lease Agreement and commonly described as a portion of Kitsap County Tax Parcel No. 4046-003-001- 0001 and legally described on the Lease Agreement (hereinafter the "Lease"). This Addendum shall be in full force and effect as of November 1, 2025. Where the terms of this Addendum differ from the terms of the Lease, it is the intent of the Lessor and Lessee that the terms of this Addendum shall control. WHEREAS, the Lessor and Lessee entered into a Lease for the use of certain real property owned by Lessor; and WHEREAS, the Lease extended a renewal right to Lessee so long as written notice was provided to Lessor of Lessee's intent to renew no later than 90 days before the expiration of the lease term, and no such notice was timely provided; and WHEREAS, however, the parties desire to continue the Lease arrangement for a modified period, and on revised terms that are in the best interest of the parties; NOW THEREFORE, the Lessor and Lessee agree to the following amendments to the Lease: I. Section 2 - TERM. Section 2 of the Lease shall be deleted and replaced with the following provisions: The Lessee is currently in possession of the Property. The initial term of the lease shall be for three (3) years commencing on November 1, 2025, and ending on November 1, 2028 (the "Initial Term"), if not sooner terminated in the manner provided in this Section, or in Section 5 or 8. Notwithstanding anything in the foregoing to the contrary, the Lessor shall have the right at any time during the Initial Term or any Renewal Term to terminate this Lease and the Lessee's use of the Property upon sixty (60) days' prior written notice. The Lease shall automatically terminate on the date specified in the Lessor's notice. 13 Additionally, the Lessor reserves the right to temporarily suspend or modify the Lessee's use of the Property during the Initial Term or any Renewal Term if required to undertake a capital improvement project. In such event, the Lessor shall provide the Lessee with reasonable advance written notice and shall make reasonable efforts to minimize disruption. The parties may mutually agree to adjust the lease term or payment obligations, as appropriate, to account for any such interruption. 2. Section 4-CONDITIONS OF USE, Subsection E. Section 4(E) of the Lease shall be deleted and replaced with the following provisions: E. Lessee acknowledges that the portion of the premises described in this lease as Givens Field I and Givens Field 2 is subject to an overlapping lease with the South Kitsap Pee Wee Association. Lessee shall have sole possession of Givens Field 1 and Givens Field 2 from November 17 through July 14 during the term of this lease. The South Kitsap Pee Wee Association shall have sole possession of Givens Field 1 and Givens Field 2 from July 15 through November 16 during the term of this lease. Lessee shall be responsible for appropriately storing personal property on or before July 14 of each calendar year. Lessee and South Kitsap Pee Wee Association shall coordinate the use and annual transfer of possession of the Givens Field 1 and Givens Field 2 in a manner that is respectful of the purpose and intent of both organizations. 3. No Other Modifications. The terms of the Lease shall bind except as set forth in this Addendum. IN WITNESS WHEREOF, the parties hereto have signed and sealed this lease the 28`h day of October 2025. LESSOR: City of Port Orchard RIM Title: LESSEE: South Kitsap Western Little League, Inc. Title: 14 0�4 City of Port Orchard ORCHARD 216 Prospect Street, Port Orchard, WA 98366 7� (360) 876-4407 • FAX (360) 895-9029 Agenda Staff Report Consent Agenda: Approval of Amendment No. 3 to Contract No. 043-15 with the South Kitsap Pee Wee Association for a Real Property Lease (Ryan) Meeting Date: October 28, 2025 Prepared By: Sayre Thompson, PW Procurement Specialist Presenter: Denis Ryan, CPWP-M, CPRP, Public Works Director Summary and Background: South Kitsap Pee Wee Association (SKPWA), a nonprofit youth sports organization, has a long-standing relationship with the City of Port Orchard and has historically used portions of the Givens Park ballfields for its youth sports programming. Their use of the site is governed by Lease Agreement No. 043-15, originally executed in 2015. To continue supporting seasonal youth sports programming, the City and SKPWA propose an Addendum to Lease Agreement No. 043-15. This addendum modifies the lease to extend the term for three years beginning November 1, 2025, and ending November 1, 2028. It also clarifies field use coordination with South Kitsap Western Little League, which holds an overlapping lease for Givens Fields 1 and 2. The agreement preserves access to youth sports opportunities, promotes cooperative use of shared facilities, and ensures uninterrupted operations for both organizations. Relationship to Comprenhensive Plan: N/A Recommendation: Staff recommends approval of the lease addendum, as presented. Motion for Consideration: I move to authorize the Mayor to execute an Addendum to Lease Agreement No. 043-15 with South Kitsap Pee Wee Association, as presented. Has item been presented to Committee/Work Study? If so, which one: No Fiscal Impact: There is no direct fiscal impact associated with this action. Field maintenance and operations remain the responsibility of the lessee. City oversight and lease administration will be handled within existing staff capacity. Alternatives: Do not approve and provide further guidance. Attachments: 15 043-15 - SK PEEWEE - Contract Amendment Addendum 3.pdf 16 City of Port Orchard Attn: Brandy Wallace 216 Prospect Street Port Orchard, WA 98366 ADDENDUM TO REAL PROPERTY LEASE AGREEMENT CONTRACT NO. 043-15 LESSOR: CITY OF PORT ORCHARD, a municipal corporation LESSEE: SOUTH KITSAP PEE WEE ASSOCIATION, a nonprofit corporation RELATED DOCUMENT RECORDING NO.: N/A ABBREVIATED LEGAL DESCRIPTION OF LEASED PREMISES: NE 1/4 Sec. 35, T.24 N, R 1 E ASSESSOR'S TAX PARCEL NO. OF LEASED PREMISES: 4046-003-001-0001 THIS ADDENDUM amends the Lease Agreement dated March 25, 2015, between City of Port Orchard, a Washington municipal corporation as Lessor, and South Kitsap Pee Wee Association, a nonprofit corporation as Lessee for those Premises described in the Lease Agreement and commonly described as a portion of Kitsap County Tax Parcel No. 4046-003-001- 0001 and legally described on the Lease Agreement (hereinafter the "Lease"). This Addendum shall be in full force and effect as of November 1, 2025. Where the terms of this Addendum differ from the terms of the Lease, it is the intent of the Lessor and Lessee that the terms of this Addendum shall control. WHEREAS, the Lessor and Lessee entered into a Lease for the use of certain real property owned by Lessor; and WHEREAS, the Lease extended a renewal right to Lessee so long as written notice was provided to Lessor of Lessee's intent to renew no later than 90 days before the expiration of the lease term, and no such notice was timely provided; and WHEREAS, however, the parties desire to continue the Lease arrangement for a modified period, and on revised terms that are in the best interest of the parties; NOW THEREFORE, the Lessor and Lessee agree to the following amendments to the Lease: I. Section 2 - TERM. Section 2 of the Lease shall be deleted and replaced with the following provisions: The Lessee is currently in possession of the Property. The initial term of the lease shall be for three (3) years commencing on November 1, 2025, and ending on November 1, 2028 (the "Initial Term"), if not sooner terminated in the manner provided in this Section, or in Section 5 or 8. Notwithstanding anything in the foregoing to the contrary, the Lessor shall have the right at any time during the Initial Term or any Renewal Term to terminate this Lease and the Lessee's use of the Property upon sixty (60) days' prior written notice. The Lease shall automatically terminate on the date specified in the Lessor's notice. 17 Additionally, the Lessor reserves the right to temporarily suspend or modify the Lessee's use of the Property during the Initial Term or any Renewal Term if required to undertake a capital improvement project. In such event, the Lessor shall provide the Lessee with reasonable advance written notice and shall make reasonable efforts to minimize disruption. The parties may mutually agree to adjust the lease term or payment obligations, as appropriate, to account for any such interruption. 2. Section 4-CONDITIONS OF USE, Subsection E. Section 4(E) of the Lease shall be deleted and replaced with the following provisions: E. Lessee acknowledges that the portion of the premises described in this lease as Givens Field 1 and Givens Field 2 is subject to an overlapping lease with the South Kitsap Western Little League, Inc. Lessee shall have sole possession of Givens Field 1 and Givens Field 2 from November 17 through July 14 during the term of this lease. The South Kitsap Western Little League Inc. shall have sole possession of the Givens Field 1 and Givens Field 2 from July 15 through November I during the term of this lease. Lessee shall be responsible for appropriately storing personal property on or before July 14 of each calendar year. Lessee and South Kitsap Western Little League, Inc. shall coordinate the use and annual transfer of possession of the Givens Field 1 and Givens Field 2 in a manner that is respectful of the purpose and intent of both organizations. 3. No Other Modifications. The terms of the Lease shall bind except as set forth in this Addendum. IN WITNESS WHEREOF, the parties hereto have signed and sealed this lease the 28"' day of October 2025. City of Port Orchard 0-A Title: LESSEE: South Kitsap Pee Wee Association LE Title: 18 0�4 City of Port Orchard ORCHARD 216 Prospect Street, Port Orchard, WA 98366 7� (360) 876-4407 • FAX (360) 895-9029 Agenda Staff Report Consent Agenda: Approval of a Lease Agreement with South Kitsap Soccer Club, SK United, Youth Non -Profit Soccer Club for Use of a Portion of Van Zee Park (Ryan) Meeting Date: October 28, 2025 Prepared By: Sayre Thompson, PW Procurement Specialist Presenter: Denis Ryan, CPWP-M, CPRP, Public Works Director Summary and Background: The South Kitsap Soccer Club, SK United, a youth non-profit soccer organization, is requesting temporary use of a portion of Van Zee Park for routine practices. The proposed use of the field and lights will begin on August 12 and end on November 11, 2025 from 5:30 PM to 7:00 PM every Monday, Tuesday, Wednesday, and Thursday. The lights are on an automated system and will be set by Public Works to turn on 30 minutes before field use begins and turn off 30 minutes after the scheduled end time. In 2024, the City leased the field to the organization for a rate of $100. Staff recommends continuing with the same rate for the upcoming use period. Relationship to Comprenhensive Plan: N/A Recommendation: City staff recommends approval of lease with the lease amount to be $100.00. Motion for Consideration: I move to authorize the Mayor to execute a lease with the South Kitsap Soccer Club, SK United, Youth Non -Profit Soccer Club, for temporary use of the Van Zee Park, including the lights, as presented. Has item been presented to Committee/Work Study? If so, which one: No 19 Fiscal Impact: A revenue of $100 to offset costs associated with the maintenance/operation of the field. Alternatives: Do not authorize and provide further direction. Attachments: VanZee_Lease_Agreement (1).pdf 20 REAL PROPERTY LEASE AGREEMENT NO. LESSOR: CITY OF PORT ORCHARD, a municipal corporation LESSEE: South Kitsap Soccer Club, SK United, Youth Non Profit Soccer club in the State of Washington ASSESSOR'S TAX PARCEL ID#: Portion of tax parcel #352401-3-026-2000; 300 Tremont Street, Port Orchard, WA This Lease is made and entered into by and between the CITY OF PORT ORCHARD, a municipal corporation organized and existing under the laws of the State of Washington, herein referred to as Lessor or the City, and South Kitsap Soccer Club, SK United, herein referred to as Lessee. Section 1 - PREMISES For and in consideration of the mutual covenants hereinafter contained, Lessor does hereby agree to a non-exclusive lease, let and demise unto the Lessee of a portion of the park described below "as is" between the hours of 5:30 p.m. and 7p.m., on Monday, Tuesday, Wednesday, and Thursday. Van Zee Park: A portion of Van Zee Park measuring approximately 150 feet by 240 feet as delineated on the attached Exhibit "A". Section 2 - TERM This lease shall commence on November 3, 2025 and end on April 9, 2026 pursuant to Section 3, or earlier terminated pursuant to Section 8. Section 3 - RENT The rent shall be one hundred dollars ($100.00) for the term of the lease payable in full without deduction or offset, to the Finance department of the City of Port Orchard on or before April 9, 2026. Section 4 — LEASE EXTENSION This lease may be extended upon written request of either party and written execution of an extension by both parties, prior to the end date. Section 5 - CONDITIONS OF USE A. It is understood and agreed between the parties that the Lessee shall not utilize the premises other than for organizing and administering youth athletic programs. B. The Lessee shall comply with all regulations and guidance disseminated by all federal, state and local officials. 21 C. The Lessee is prohibited to make any improvements to the PREMISES and the areas immediately adjacent to the PREMISES. D. Lessee shall maintain a clean and operational portable restroom available for use during practice hours. E. Lessee shall not sublease or rent any portion of the above -described real property without the prior written consent of Lessor, and consent to a sub -lease or rental agreement shall not be deemed to be consent to any subsequent sub -lease or rental agreement. F. Lessee agrees to maintain the above -described real property during the term of this lease and shall be responsible for ensuring that field areas are free and clear of all trash and debris during their use of the facilities during the duration of this lease. Section 6 - INDEMNIFICATION; INSURANCE. A. Lessor, its officers, elected officials, employees and agents, shall not be liable for any loss, damage or injury of any kind or character to any person or property arising from any use of the leased premises or any part thereof, or caused by and/or arising from any act or omission of Lessee or any of its agents, employees, licensees or invitees or by or from any accident on the leased premises or any fire or other casualty thereon or occasioned by the failure of Lessee to maintain said premises or to cause the same to be maintained in a safe condition or by a nuisance made or suffered thereon, or arising from any other cause whatsoever; and Lessee, as a material part of the consideration of this lease, hereby waives on its behalf all claims and demands against Lessor and hereby indemnifies and agrees to defend and hold Lessor, its officers, elected officials, employees and agents, entirely free and harmless from all liability for damages and costs of other persons for any such loss, damage or injury, together with all costs, reasonable attorney's fees and expenses arising therefrom. B. Lessee shall procure and maintain during the lease term a commercial general liability policy against claims for injuries to persons or damage to property that may arise from or in connection with Lessee's use of the leased premises. Said policy shall have insurance limits no less than $1,000,000 each occurrence and $2,000,000 general aggregate. Said policy shall be endorsed to name the Lessor as an additional insured and to state that coverage shall not be cancelled unless Lessor has received thirty (30) days written notice by certified mail, return receipt requested. Section 7 - ASSIGNMENT Lessee shall not assign or transfer this lease or any interest therein without the prior written consent of Lessor, and such consent to an assignment shall not be deemed to be consent to any subsequent assignment. Any such assignments without such consent shall be void, and shall at the option of Lessor, terminate with this lease. 22 Section 8 - DEFAULT In the event the Lessee shall fail to keep and perform any of the covenants and agreements herein contained, including compliance with then -applicable COVID-19 public health directives or the maintenance of a proper insurance policy as described above, Lessor may terminate this lease by giving written notice to Lessee. Provided, however, that with the exception of Lessee's failure to maintain a proper insurance policy as described above, Lessee shall be given a minimum of five (5) days upon receiving written notice to cure any default prior to lease termination. Lessee's failure to maintain a proper insurance policy as described above is not subject to Lessee's right to cure and shall be grounds for immediate termination of the lease by Lessor. In the event of any such lease termination, Lessor, in addition to the other rights and remedies it may have, shall have the immediate right of re-entry and may remove all persons and property from the premises. Section 9 - WAIVER Lessor's waiver of one or more covenants or conditions shall not be construed as a waiver of a subsequent breach of the same or other covenants or conditions. Section 10 - PARTIES BOUND The covenants and conditions herein contained shall, subject to the provisions as to assignment and transfer, apply to and bind the heirs, successors, executors, administrators, and assigns of all the parties hereto. Section 11 - LESSOR'S RESERVATION Lessor reserves the right, without liability to Lessee, to inspect the premises at reasonable times, upon reasonable notice, and without unreasonable interference to Lessee's activities on the premises. Section 12 - ENTIRE AGREEMENT This lease sets forth the entire agreement between the parties and it shall not be modified in any manner except by an instrument in writing executed by the parties. The written provisions and terms of this Agreement, together with any Exhibits attached hereto, shall supersede all prior verbal statements of any officer or other representative of the City, and such statements shall not be effective or be construed as entering into or forming a part of or altering in any manner this Agreement. All of the above documents are hereby made a part of this Agreement. However, should any language in any of the Exhibits to this Agreement conflict with any language contained in this Agreement, the terms of this Agreement shall prevail. Section 13 - JURISDICTION, VENUE AND ATTORNEY FEES Any action for claims arising out of or relating to this lease shall be governed by the laws of the State of Washington. Venue shall be in Kitsap County Superior Court. In any suit or action instituted to enforce any right or obligation granted in this lease, the substantially prevailing party shall be entitled to recover its costs, disbursements, and reasonable attorney's fees from the other party. 23 Section 14 — NOTICES Any notices to the City of Port Orchard shall be sent to the following address: City Clerk City of Port Orchard 216 Prospect Street Port Orchard, Washington 98366 Email: Cit�jhallortorchardw. og_v Notices to the LESSEE shall be sent to the following address: South Kitsap Soccer Club Po Box 23 Port Orchard, WA 98366 Email: nresidentnsksoccer.com [SIGNATURE PAGE FOLLOWS] 24 IN WITNESS WHEREOF, the parties hereto have signed and sealed this lease the 12th day of August 2025. LESSOR: City of Port Orchard By: Robert Putaansuu, Mayor ATTEST/AUTHENTICATED: Jenine Floyd, Deputy City Clerk APPROVED AS TO FORM: Charlette A. Archer, City Attorney LESSEE: South Kitsap Soccer Club, SK United �7 g Si nature: Title: 25 .-.d w g 1,� 4L I . s 1 IL w k bit A Van Zee Park Lease Area a'• •F . w■ ��m City of Port Orchard OORCHARD 216 Prospect Street, Port Orchard, WA 98366 (360) 876-4407 • FAX (360) 895-9029 Agenda Staff Report Public Hearing: Multi -Family Tax Exemption Ordinance Public Hearing (Bond) Meeting Date: October 28, 2025 Prepared By: Nick Bond, AICP, Community Development Director Presenter: Nick Bond, AICP, Community Development Director Summary and Background: In 2024, the City Council requested that a discussion of the Multi -Family Tax Exemption (MFTE) program be placed on a future agenda for discussion. This discussion was on hold pending completion of the City's Comprehensive Plan Update and Middle Housing ordinance. After completing work on the Comprehensive Plan in June, staff prepared a discussion item on MFTE at the July 2025 work study meeting. MFTE was discussed a second time at the September 16, City Council work study meeting at which time, the City Council requested that a public hearing be scheduled on the proposed ordinance. The new ordinance is based on the ordinance that was repealed in 2023. The ordinance is revised in several ways. Most notably, the old ordinance had three different maps that corresponded to different MFTE approval criteria while the new ordinance has a single map. Now, to qualify for MFTE, a project would have to meet one of four criteria listed in section 3.48.060 (6). For the 12-year affordable housing MFTE, the project would have to meet one of these four criteria and provide affordable housing at lower rents than required in the 2023 ordinance. The four criteria listed in proposed section Port Orchard Municipal Code (POMC) 3.48.060 (6) are as follows: (a) The multi -family housing project must be in a mixed -use shopfront building containing commercial ground floor uses measuring at least 4,000 square feet or 40% of the building's footprint, whichever is less. For the purposes of this section, live -work units may satisfy up to half of the requirement for commercial ground floor uses, but shall not be considered dwelling units for the purposes of determining eligibility for a tax exemption or for calculating the total number of required affordable units; or (b) The multi -family housing project must be in a building containing at least four (4) stories of residential units and achieving at least 40 units per net acre (gross acreage, less critical areas and associated buffers). All portions of buildings must contain four (4)-stories of multi -family units. Where buildings step down following topography, each portion of the building must contain four (4)-stories; or (c) The multi -family project must provide middle housing and be on a parcel/lot measuring less than 27 15,000 square feet with between 4-12 multi -family units; or (d) The multi -family project must provide 100% of any on -site parking below grade or entirely within footprint of buildings containing tax exempt units. The affordability criteria for a 12-year MFTE project as proposed in POMC 3.48.060 (7) changed the required rent for affordable units from 10% below HUD fair market rent to 25% below HUD fair market rent. Since advertising a public hearing on the proposed ordinance, staff has met with and the city has received a written comment from the Kitsap Homebuilders Association (KBA). In the meetings with the KBA, they provided some suggestions for minor amendments that have been incorporated into the draft ordinance and include: 1. Revising proposed section 3.48.060 (6) (a) to clarify that live work units may satisfy 50% of the required minimum commercial area but would not be treated as multi -family units under the chapter. 2. Revising proposed section 3.48.060 (6) (d) such that parking be located within the footprint of the building and non -necessarily be located underground. The sections of code that have changes since the previous version reviewed by the City Council are highlighted in the draft ordinance in yellow. In the KBA letter, they ask that the requirement for affordable units be amended, reducing the affordable unit percentage below fair market rent from the currently proposed 25% down to 20%. After discussing the comment letter with the Land Use Committee and after researching the basis for the request, staff have discovered that a reduction may be warranted. In an earlier analysis, it was assumed that HUD fair market rents were generally in line with the market rents found in Port Orchard. However, staff has found that newer apartments are rented above the HUD published fair market rent and that is without considering that utilities are included in the HUD fair market rent. By using a utility allowance added to the market rents found at the recently constructed Plisko Apartments project, you can see that apartments in this project are rented above the published HUD numbers. This means that affordable units are renting below market rate even before the 10%, 20%, or 25% reduction has been applied. HUD Fair Market Rent vs. Market Rent 2025 HUD Fair Market Rent 2025 Market Rent (per month includes utility (per month includes utilities) allowance - Plisko Apts) 1-Bedroom $1,568.00 $1,791.00 2-Bedroom $2,057.00 $2,310.00 3-Bedroom $2,685.00 $2,969.00 Once the difference between the HUD Fair Market Rent and Market Rents is added to the reductions in rent being considered, the savings to individual renters is larger than previously estimated. P Monthly MFTE Savings Per Unit Prior Prior Assumption Assumption 10% Below 20% Below 25% Below 10% Below Fair 25% Below Fair Market Market Market Market Market 1-Bedroom $156.80 $392.00 $676.80 $833.60 $912.00 2-Bedroom $205.70 $514.25 $651.70 $857.40 $960.25 3-Bedroom $268.50 $671.25 $517.50 $786.00 $920.25 For this reason, staff would support reducing the affordability requirement from the previously proposed 25%. Background The State of Washington has authorized cities to adopt Multi -Family Tax Exemption (MFTE) programs since 1995, pursuant to RCW 84.14. These programs are intended to support the development of multifamily housing and, in some cases, affordable housing in urban areas experiencing growth pressures. Port Orchard adopted its MFTE program in 2016 to incentivize the construction of new multifamily housing, including affordable units, by providing a limited property tax exemption on the value of residential improvements for a period of eight or twelve years. Since 2016, the City entered seven MFTE agreements supporting the construction of 442 apartment units, with two projects (totaling 97 units) reserving 20% of units as affordable housing in exchange for a 12-year exemption. Several other multi -family projects have been constructed since 2016 without participating in the MFTE program. Under the repealed framework, there were two types of 8-year exemptions and a 12-year exemption. The 8-year exemptions targeted redevelopment and encouraging projects with structured parking. The 12-year exemption required that 20% of units be rented at 10% below HUD fair market rent for the duration of the MFTE approval. Increasing housing supply has been shown to be effective in combatting rent increases. As many new apartments became available in 2021 and 2022, data shows that vacancy rates climbed above 5% and rents in Port Orchard stopped increasing at the rates seen between 2014 and 2021 when vacancy rates were below 5%. MFTE does not significantly impact the property tax revenues received by the 29 City or junior taxing districts. Instead, the savings that go to developers is shifted to other properties in Port Orchard resulting in very small property tax increases for the duration of the MFTE approval. (See the attached "What is Tax Shift" document produced by Commerce.) At the same time, the City receives numerous one-time revenues such as impact fees, connection charges, permit fees, and a boost in Sales Tax and REET revenue related to the construction and sale of new housing units. In October 2023, the City Council repealed POMC Chapter 3.48, eliminating the City's previously adopted MFTE program. This decision followed extensive policy review and deliberation, including ongoing discussions at the Land Use Committee and during the City's Housing Action Plan (HAP) development. In June 2023, the City adopted its Housing Action Plan, which included recommendations for expanding the MFTE program tailored to local housing, affordability goals and allowing middle housing projects to qualify for MFTE. The City's 2024 Comprehensive Plan, adopted after the repeal of Chapter 3.48, reaffirms support for MFTE as a policy tool to address housing needs, directing staff to evaluate options for reimplementation. For additional MFTE resources, please visit the following Department of Commerce website: https://www.commerce.wa.gov/growth-management/housing-planning/mfte/ Relationship to Comprenhensive Plan: Policies in the Comprehensive Plan (including the Housing Action Plan adopted by reference) support the use of MFTE as a tool to provide for affordable housing. Recommendation: Staff Recommends that the City Council conduct a public hearing on the draft MFTE ordinance. Motion for Consideration: N/A Has item been presented to Committee/Work Study? If so, which one: Work Study Fiscal Impact: Due to the Kitsap County Assessor's "Tax shift" policy, MFTE does not reduce city or special taxing district revenues but instead shifts that tax liability across the tax base. There are some administrative costs to a MFTE program and it is expected that it could require up to 10% of an existing full time employee's time to manage a program. If approved, MFTE is likely to generate significant other revenues including sales tax, REET, utility connection fee, impact fee, and permit revenues by incentivizing development. Alternatives: Amend the proposed ordinance, do not advance the proposed ordinance for consideration. Based on written testimony received, the City Council may wish to amend the percentage in proposed POMC 3.48.060 (7) from 25% down to 20% or even lower. 30 Attachments: 01 - MFTE Ordinance Draft.docx 31 ORDINANCE NO. -20 AN ORDINANCE OF THE CITY OF PORT ORCHARD, WASHINGTON, ADOPTING A NEW CHAPTER 3.48 MULTIFAMILY PROPERTY TAX EXEMPTION OF THE PORT ORCHARD MUNICIPAL CODE; PROVIDING FOR SEVERABILITY AND CORRECTIONS; AND ESTABLISHING AN EFFECTIVE DATE. WHEREAS, the city previously offered a Multifamily Tax Exemption (MFTE) program as codified in POMC 3.48 but repealed the program in 2023 by passing ordinance 026-23; WHEREAS, after studying the options for providing tax incentives to encourage the development of multi -family housing, the City Council wishes to adopt a new MFTE code; and WHEREAS, the City Council wishes to encourage increased residential opportunities, within those areas of the city designated as residential targeted areas in Figure 1 of the proposed POMC 3.48; and WHEREAS, the City Council wishes to further the City's goals of redevelopment and additional, affordable residential units within the City's downtown area, which is likely to have higher costs for development and redevelopment due to the nature of building below - grade parking and building on shoreline fill; and WHEREAS, the City Council wishes to stimulate rehabilitation and redevelopment of existing vacant and underutilized buildings and properties for multifamily housing in designated residential targeted areas and centers, to increase and improve housing opportunities, including affordable housing; and WHEREAS, the City Council wishes to encourage the development of higher value residential projects than those currently being constructed by providing incentives with the aim of increasing long term property tax revenues; and WHEREAS, the City Council wishes to adopt requirements for 12-year tax exemptions to establish standards to be met and to obtain a greater percentage of housing that is more affordable than previously required, in order to maximize public benefit; and WHEREAS, the City Council wishes to adopt requirements for 8-year tax exemptions to establish certain performance and project value standards, in order to maximize public benefit; and WHEREAS, on August 28, 2025, the City Council's Land Use Committee reviewed the 32 Ordinance No. _-20 Page 2 of 16 amendments to Chapter POMC 3.48, and recommended that they be forwarded to the full City Council for review and approval; and WHEREAS, on September 16, 2025, the City Council reviewed the amendments to Chapter POMC 3.48 at their regularly scheduled Work Study Session, and; WHEREAS, on September 19, 2025, the City submitted the proposed amendments to POMC Chapter 3.48 to the Department of Commerce along with a 15-day request for review; and WHEREAS, on October 7, 2025, the City's SEPA official issued a determination of non -significance for the proposed amendments to POMC Chapter 3.48, and there have been no appeals; and WHEREAS, on October 21, 2025, the City Council reviewed the amendments at its work-study meeting, and directed staff to bring the amendments forward for Council adoption with certain changes; and WHEREAS, the City Council, after careful consideration all public comment and the Ordinance, finds that this Ordinance is consistent with the City's Comprehensive Plan and development regulations, the Growth Management Act, Chapter 36.70A RCW, and that the amendments herein are in the best interests of the residents of the City; NOW, THEREFORE, THE CITY COUNCIL OF THE CITY OF PORT ORCHARD, WASHINGTON, DO ORDAIN AS FOLLOWS: SECTION 1. Findings and Recitals. The recitals set forth above are hereby adopted and incorporated as findings in support of this Ordinance. SECTION 2. Chapter 3.48 of the Port Orchard Municipal Code is hereby amended to read as follows: Sections: 3.48.010 Purpose. 3.48.020 Definitions. 3.48.030 Residential targeted areas — Criteria — Designation. 3.48.040 Residential targeted areas —Types 1 through 3 3.48.040 Terms of the tax exemption. 33 Ordinance No. -20 Page 3 of 16 3.48.050 Project eligibility. 3.48.060 Application procedure. 3.48.070 Application review — Issuance of conditional certificate — Denial — Appeal. 3.48.080 Extension of conditional certificate. 3.48.090 Application for final certificate. 3.48.100 Issuance of final certificate. 3.48.110 Annual compliance review — Reporting. 3.48.120 Cancellation of tax exemption. 3.48.130 Conflict of provisions. 3.48.010 Purpose. As provided for in Chapter 84.14 RCW, the purpose of this chapter is to provide limited exemptions from ad valorem property taxation for multifamily housing in designated residential targeted areas to: (1) Encourage increased housing opportunities in residential and mixed -use projects, including affordable housing units, middle housing, infill housing, mixed -use shopfront buildings containing housing, and apartments, within areas of the city designated by the city council as residential targeted areas; and/or (2) Stimulate new construction or rehabilitation of existing vacant and underutilized buildings for multifamily housing in designated residential targeted areas to increase and improve housing opportunities, including affordable housing; and (3) Accomplish the planning goals required under the Growth Management Act, Chapter 36.70A RCW, as implemented by the city's comprehensive plan. 3.48.020 Definitions. When used in this chapter, the following terms shall have the following meanings, unless the context indicates otherwise: (1) "Affordable housing" means the definition provided for in RCW 84.14.010. (2) "Department" means the city department of community development. (3) "Director" means the director of the department of community development, or designee. (4) "Fair market rent" means the federal department of housing and urban development's estimate of what a household seeking a modest rental home in a short amount of time can expect to pay for rent and utilities in the current market, as updated annually. 34 Ordinance No. _-20 Page 4 of 16 (5) "Household" means the definition provided for in RCW 84.14.010. (6) "Median family income" means the median family income for the Bremerton -Silverdale Metropolitan Statistical Area, as calculated by the federal department of housing and urban development and updated annually. (7) "Middle Housing" means the definition provided for in POMC 20.12 for buildings consisting of at least four (4) dwelling units but no more than six (6) dwelling units. (8) "Mixed -use shopfront building" means the definition provided in POMC 20.32. (9) "Multifamily housing" (for the purposes of this chapter) means a building having four (4) or more dwelling units not designed or used as transient accommodations and not including hotels and motels. Multifamily units may result from new construction or rehabilitated or conversion of vacant, underutilized, or substandard buildings to multifamily housing. (10) "Owner" means the definition provided for in RCW 84.14.010. (11) "Permanent residential occupancy" means the definition provided for in RCW 84.14.010. (12) "Rehabilitation improvements" means the definition provided for in RCW 84.14.010. (13) "Residential targeted area" means the definition provided for in RCW 84.14.010 and the area(s) that have been so designated by the city council pursuant to this chapter. (14) "Substantial compliance" means the definition provided for in RCW 84.14.010. (15) "Urban center" means the definition provided for in RCW 84.14.010. 3.48.030 Residential targeted areas — Criteria — Designation. (1) Following notice and public hearing as prescribed in RCW 84.14.040 of the city council's intention of designating a residential targeted area, the city council may, in its sole discretion, designate one or more residential targeted areas. Each residential targeted area must meet the following criteria, as determined by the city council: (a) The area is within an urban center; and (b) The area lacks sufficient available, desirable, and convenient residential housing, including affordable housing, to meet the needs of the public who would be likely to live in the urban center if affordable, desirable, attractive, and livable residences were available; and (c) Providing additional housing opportunities in the area will assist in achieving one or 35 Ordinance No. -20 Page 5 of 16 more of the purposes of this chapter. (2) In designating a residential targeted area, the city council may also consider other factors including, but not limited to: (a) Additional housing in the residential targeted area will attract and maintain an increase in the number of permanent residents; (b) An increased permanent residential population in the residential targeted area will help to achieve the planning goals mandated by the Growth Management Act under Chapter 36.70A RCW, as implemented through the city's current and future comprehensive plans; (c) Encouraging additional housing in the residential targeted area is consistent with public transportation plans; or (d) Additional housing may contribute to revitalization of a distressed neighborhood or area within the city. (3) At any time the city council may, by ordinance, and in its sole discretion, amend or rescind the designation of a residential targeted area pursuant to the same procedural requirements as set forth in this chapter for original designation. 3.48.040 Designated residential targeted areas. In accordance with section 3.48.030, the City Council has designated a residential targeted area, as provided below and as shown on Figure 1. Figure 1 is provided for planning purposes only, and all development that is proposed to qualify for tax exemption within these areas must meet the criteria of this chapter, as well as all other relevant City standards, including but not limited to: the comprehensive plan, Unified Development Code, building code, public works standards, critical areas regulations and the shoreline master program. The project must also comply with any other standards and guidelines adopted by the city council, including but not limited to those listed in section 3.48.060. 36 Ordinance No. _-20 Page 6 of 16 ORCHARD. City of Port Orchard Multi -Family Tax Exemption Residential Target Areas Figure 1 - .�rso. ur._4 VL �_ ] 5-TARGET AREA F P 4 7 g g B auvvu Effective Date of Ordinance %X%-25 0 0.102 OA 0.6 O.8 9T t„J Miles Figure 1. Residential Target Areas. 3.48.050 Terms of the tax exemption. (1) Duration of Exemption. The value of new housing construction, conversion, and rehabilitation improvements qualifying under this chapter is exempt from ad valorem property taxation, as follows: (a) For both 8-year and 12-year exemptions, the exemption begins on January 1" of the year immediately following the calendar year of issuance of the tax exemption certificate. (b) For 12-year exemptions, the number of residential units identified to meet the requirements for an affordable housing component per 3.48.040(1)(c) shall continue to be made available for the length of the exemption period. (iii) The mix and configuration of housing units (e.g., studio, one -bedroom, two - bedroom) used to meet the requirement for affordable units shall be substantially proportional to the mix and configuration of the total housing units in the project. 37 Ordinance No. -20 Page 7 of 16 (iv) When a project includes more than one building with multifamily housing units, all of the affordable housing units required in this subsection must not be located in the same building. (2) Limits on Exemption. The exemption does not apply: (a) To the value of land or to the value of non -housing -related improvements not qualifying under this chapter. (b) In the case of rehabilitation of existing buildings, to the value of improvements constructed prior to submission of the completed application required under this chapter. (c) To increases in assessed valuation made by the Kitsap County Assessor on nonqualifying portions of building or other improvements and value of land nor to increases made by lawful order of a county board of equalization, the Department of Revenue, or Kitsap County, to a class of property throughout the county or specific area of the county to achieve the uniformity of assessment or appraisal required by law. (3) Conclusion of Exemption. At the conclusion of the exemption period, the new or rehabilitated housing cost shall be considered as new construction for the purposes of Chapter 84.55 RCW. 3.48.060 Project eligibility. A proposed multifamily housing project must meet all of the following requirements for consideration for a property tax exemption: (1) Location. The project must be located within a residential targeted area as provided in POMC 3.48.040. (2) Tenant Displacement Prohibited. The project must not displace existing residential tenants of structures that are proposed for redevelopment. If the property proposed to be rehabilitated is not vacant, an applicant shall provide each existing tenant housing of comparable size, quality, and price and a reasonable opportunity to relocate. (3) Noncompliance with Building Codes. Existing dwelling units proposed for rehabilitation must fail to comply with one or more standards of the applicable state or city building codes. (4) Size of Project. The new, converted, or rehabilitated multiple -unit housing must provide for a minimum of 50 percent of the space (excluding structured parking) for permanent residential occupancy. The project, whether new, converted, or rehabilitated multiple -unit housing, must include at least 10 units of multifamily housing within a residential structure or as part of an 38 Ordinance No. -20 Page 8 of 16 urban development. In the case of existing multifamily housing that is occupied or which has not been vacant for 12 months or more, the multifamily housing project must also provide for a minimum of four additional multifamily units for a total project of at least 10 units including the four additional units. Existing multifamily housing that has been vacant for 12 months or more does not have to provide additional units. Live -work units shall not be considered a unit of multi -family housing for the purposes of this chapter and shall not be exempt from ad valorum property taxation. (5) Proposed Completion Date. New construction of multifamily housing and rehabilitation improvements must be completed within three years from the date of approval of the application. (6) Project performance standards and form. To qualify for a limited exemption from ad valorem property taxation pursuant to this chapter, the proposed project must meet one of the following performance standards and forms in addition to meeting all other requirements of this chapter. (a) The multi -family housing project must be in a mixed -use shopfront building containing commercial ground floor uses measuring at least 4,000 square feet or 40% of the building's footprint, whichever is less. For the purposes of this section, live -work units may satisfy up to half of the requirement for commercial ground floor uses, but shall not be considered dwelling units for the purposes of determining eligibility for a tax exemption or for calculating the total number of required affordable units; or (b) The multi -family housing project must be in a building containing at least four (4) stories of residential units and achieving at least 40 units per net acre (gross acreage, less critical areas and associated buffers). All portions of buildings must contain four (4)-stories of multi -family units. Where buildings step down following topography, each portion of the building must contain four (4)-stories; or (c) The multi -family project must provide middle housing and be on a parcel/lot measuring less than 15,000 square feet with between 4-12 multi -family units; or (d) The multi -family project must provide 100% of any on -site parking below grade or entirely within footprint of buildings containing tax exempt units. (7) Additional performance standards for 12-year tax exemption. To qualify for a 12-year limited exemption from ad valorem property taxation, and affordable housing component is required: 39 Ordinance No. -20 Page 9 of 16 (a) A minimum of 20 percent of all residential units in the development shall be rented for at least 25 percent below fair market rent for 12 years, to tenants whose household annual income is: • At or below 40% of median family income, for housing units in congregate residences or small efficiency dwelling units; • At or below 65% of median family income for one -bedroom units; • At or below 75% of median family income for two -bedroom units; and • At or below 80% of median family income for three -bedroom and larger units. (b) If calculations for the minimum 20 percent of the residential units required under subsection 1 of this section result in a fraction, then the minimum number of residential units required to meet the affordable housing requirement shall be rounded up to the next whole number. (c) For the purpose of administering this chapter, the Department of Community Development shall publish annual rent limits and a utility allowance which may be subtracted from the rent limits required by this chapter. This annual allowance shall be published by July 1 annually, provided that all relevant data is made available by the Department of Housing and Urban Development (HUD). If publication of HUD data is delayed, the prior year's limits shall remain in effect until new data is released. Project owners may choose to include utilities (other than telephone) in the rent charged or may deduct the annually released utility allowance from the maximum allowed rent. 3.48.070 Application procedure. A property owner who wishes to propose a project for a tax exemption shall complete the following procedures: (1) The exemption application provided by the city shall be completed and filed with the department prior to issuance of a building permit for the project. The completed application shall be accompanied by the application fee as authorized by RCW 84.14.080 and as set forth in the city's current fee resolution. (2) The exemption application shall contain and require such information as deemed necessary by the director, including: 40 Ordinance No. _-20 Page 10 of 16 (a) A brief written description of the project, including timing and construction schedule, setting forth the grounds for the exemption. (b) Floor and site plans of the proposed project, which may be revised by the owner, provided such revisions are made and presented to the director prior to the city's final action on the exemption application. (c) For rehabilitation projects, the applicant shall provide a report prepared by a registered architect identifying property noncompliance with current building codes. This report shall identify specific code violations and must include supporting data that satisfactorily explains and proves the presence of a violation. Supporting data must include a narrative and such graphic materials as needed to support this application. Graphic materials may include, but are not limited to, building plans, building details, and photographs. (d) If applying for a 12-year exemption, it shall include information describing how the applicant will comply with the affordability requirements set forth in POMC 3.48.040(1)(c). (e) A statement from the owner acknowledging the potential tax liability when the project ceases to be eligible under this chapter. (f) An affidavit signed by the owner stating the occupancy record of the property for a period of 12 months prior to filing the application. (g) Verification of the correctness of the information submitted by the owner's signature and affirmation made under penalty of perjury under the laws of the state of Washington. 3.48.080 Application review — Issuance of conditional certificate — Denial — Appeal. (1) Director's Decision. The director may certify as eligible an application which is determined to comply with all applicable requirements of this chapter. A decision to approve or deny an application shall be made within 90 calendar days of receipt of a complete application. (2) Approval of Application — Contract Required. If an application is approved, the applicant shall enter into a contract with the city, regarding the terms and conditions of implementation of the project, and pursuant to the following: (a) The contract shall be subject to approval by the city council, in the form of a resolution, regarding the terms and conditions of the project and eligibility for exemption under this chapter. This contract shall be a covenant running with the land and shall be binding on the assigns, heirs, and successors of the applicant. 41 Ordinance No. _-20 Page 11 of 16 (b) For any development project including owner -occupied units, the contract with the city shall also require that an owners' association organized under RCW 64.34.300 be formed for all owner -occupied units within the development, for at least the length of the exemption period granted, to assume the responsibility for collecting from all individual unit owners the information and documents required to complete the annual reporting requirements and for filing the required annual report with the city for each of the individual homeowners pursuant to POMC 3.48.120. (c) Amendment of Contract. Within three years of the date from the city council's approval of the contract, an owner may request an amendment(s) to the contract by submitting a request in writing to the director. The fee for an amendment is as set forth in the city's current fee resolution. The director shall have authority to approve minor changes to the contract that are reasonably within the scope and intent of the contract approved by the city council, as solely determined by the director. Amendments that are not reasonably within the scope and intent of the approved contract, as solely determined by the director, shall be submitted to the city council for review and approval. The date for expiration of the conditional certificate shall not be extended by contract amendment unless all the conditions for extension set forth in POMC 3.48.090 are met. (3) Issuance of Conditional Certificate. Upon city council approval of the contract required under subsection (2) of this section, the director shall issue a conditional certificate of acceptance of tax exemption. The conditional certificate shall expire three years from the date of city council approval unless an extension is granted as provided in this chapter. (4) Denial of Application. If an application is denied, the director shall state in writing the reasons for denial and shall send notice to the applicant at the applicant's last known address within 10 calendar days of issuance of the denial. (5) Appeal. Per RCW 84.14.070, an applicant may appeal a denial to the city council within 30 calendar days of receipt of the denial by filing a complete appeal application and fee, as set forth in the city's current fee resolution, with the director. The appeal before the city council will be based on the record made before the director. The director's decision shall be upheld unless the applicant can show that there is no substantial evidence on the record to support the director's decision. The city council's decision on appeal will be final. 3.48.090 Extension of conditional certificate. (1) Extension. The conditional certificate and time for completion of the project may be extended by the director for a period not to exceed a total of 24 consecutive months. To obtain an extension, the applicant must submit a written request with a fee, as set forth in the city's current fee resolution, stating the grounds for the extension. An extension may be granted if 42 Ordinance No. _-20 Page 12 of 16 the director determines that: (a) The anticipated failure to complete construction or rehabilitation within the required time period is due to circumstances beyond the control of the owner; provided, that financial hardship, regardless of the cause or reason, shall not be considered by the director as a circumstance beyond the control of the owner in order to grant an extension; (b) The owner has been acting and could reasonably be expected to continue to act in good faith and with due diligence; and (c) All the conditions of the original contract (and as amended) between the applicant and the city will be satisfied upon completion of the project. (2) Denial of Extension. If an extension is denied, the director shall state in writing the reason for denial and shall send notice to the applicant's last known address within 10 calendar days of issuance of the denial. (3) Appeal. An applicant may appeal the denial of an extension to the hearing examiner within 14 calendar days of receipt of the denial by filing a complete appeal application and appeal fee with the director. The appeal before the hearing examiner shall be processed as a closed record hearing. No appeal to the city council is provided from the hearing examiner's decision. 3.48.100 Application for final certificate. Upon completion of the improvements agreed upon in the contract between the applicant and the city and upon issuance of a temporary or permanent certificate of occupancy, the applicant may request a final certificate of tax exemption by filing with the director such information as the director may deem necessary or useful to evaluate the eligibility for the final certificate, including the following: (1) A statement of expenditures made with respect to each multifamily housing unit and the total expenditures made with respect to the entire property; (2) A description of the completed work and a statement of qualification for the exemption; (3) The total monthly rent or total sale amount of each multifamily housing unit rented or sold to date; (4) A statement that the work was completed within the required three-year period or any authorized extension; (5) If a 12-year exemption, information on the applicant's compliance with the affordability requirements of this chapter; and 43 Ordinance No. _-20 Page 13 of 16 (6) Any additional information requested by the city pursuant to meeting any reporting requirements under Chapter 84.14 RCW. 3.48.110 Issuance of final certificate. (1) Director's Decision. Within 30 calendar days of receipt of all materials required for a final certificate, the director shall determine whether the specific improvements satisfy the requirements of the contract, application, and this chapter. (2) Granting of Final Certificate. If the director determines that the project has been completed in accordance with this chapter and the contract between the applicant and the city, and has been completed within the authorized time period, the city shall, within 10 calendar days of the expiration of the 30-day review period above, file a final certificate of tax exemption with the Kitsap County assessor. The director is authorized to cause to be recorded, at the owner's expense, in the real property records of the Kitsap County department of records, the contract with the city, as amended if applicable, and such other document(s) as will identify such terms and conditions of eligibility for exemption under this chapter as the director deems appropriate for recording, including requirements under this chapter relating to affordability of units. (3) Denial of Final Certificate. The director shall notify the applicant in writing that a final certificate will not be filed if the director determines that: (a) The improvements were not completed within the authorized time period; (b) The improvements were not completed in accordance with the contract between the applicant and the city; or (c) The owner's property is otherwise not qualified under this chapter. (4) Appeal. An applicant may appeal a denial of a final certificate to the hearing examiner within 14 calendar days of issuance of the denial of a final certificate by filing a complete appeal application and appeal fee with the director. The appeal before the hearing examiner shall be processed as a closed record hearing. No appeal to the city council is provided from the hearing examiner's decision. 3.48.120 Annual compliance review — Reporting. (1) Within 30 calendar days after the first anniversary of the date of filing the final certificate of tax exemption and each year for the tax exemption period, the property owner shall be required to file a notarized declaration with the director indicating the following: (a) A statement of occupancy and vacancy of the multifamily units during the previous 12 months; 44 Ordinance No. _-20 Page 14 of 16 (b) A certification by the owner that the property has not changed use and continues to be in compliance with the contract with the city and the applicable requirements of this chapter; (c) A description of changes or improvements to the property made after the city's issuance of the final certificate of tax exemption; (d) The total monthly rent of each multifamily housing unit rented or the total sale amount of each unit sold during the 12 months ending with the anniversary date; (e) A breakdown of the number, type, and specific multifamily housing units rented or sold during the 12 months ending with the anniversary date; (f) If granted a 12-year exemption, information demonstrating the owner's compliance with the affordability requirements of this chapter, including, but not limited to, the income of each renter household at the time of initial occupancy or the income of each purchaser of owner -occupied units at the time of purchase; (g) The value of the tax exemption for the project; and (h) Any additional information requested by the city pursuant to meeting any reporting requirements under Chapter 84.14 RCW. (2) City staff may also conduct on -site verification of the declaration and reporting required under this section. Failure to submit the annual declaration and report may result in cancellation of the tax exemption pursuant to this chapter and shall result in a review of the exemption per RCW 84.14.110. (3) If the city issues final tax exemption certificates pursuant to this chapter, the director shall submit the report required by RCW 84.14.100 to the state Department of Commerce by December 31st of each year. 3.48.130 Cancellation of tax exemption. (1) The director may cancel a tax exemption on a property if he/she determines any of the following: (a) The owner is not complying with the terms of the contract or this chapter; (b) The use of the property is changed or will be changed to a use that is other than residential; (c) The project violates applicable zoning requirements, land use regulations, building, or 45 Ordinance No. _-20 Page 15 of 16 fire code requirements; or (d) The owner fails to submit the annual declaration and report specified in POMC 3.48.120. (2) If the owner intends to convert the multifamily housing to another use, the owner shall notify the director and the Kitsap County assessor in writing within 60 calendar days of the change in use. (3) Cancellation may occur in conjunction with the annual review or at any such time noncompliance has been determined. (4) Upon cancellation of the tax exemption, additional taxes, interest, and penalties shall be imposed on the property, and a priority lien may be placed on the land, pursuant to state law. (5) Notice of Cancellation. Upon determining that a tax exemption is to be canceled, pursuant to RCW 84.14.110(2), the director shall notify the owner by mail, return receipt requested. (6) Appeal of Cancellation. The owner may appeal the determination of cancellation to the hearing examiner by filing a notice of appeal and appeal fee with the city clerk within 30 calendar days of the date of the notice of cancellation, specifying the factual and legal basis for the appeal. The appeal shall be heard by the hearing examiner as a closed record hearing. No appeal to the city council is provided from the hearing examiner's decision. 3.48.140 Conflict of provisions. If any provision of this chapter is in legal conflict with the provisions of Chapter 84.14 RCW, as currently adopted or hereafter amended, the provisions of Chapter 84.14 RCW shall apply as if set forth in this chapter. SECTION 3. Corrections. Upon the approval of the city attorney, the city clerk and/or code publisher is authorized to make any necessary technical corrections to this ordinance, including but not limited to the correction of scrivener's/clerical errors, references, ordinance numbering, section/subsection numbers, and any reference thereto. SECTION 4. Severability. If any section, subsection, paragraph, sentence, clause, or phrase of this ordinance is declared unconstitutional or invalid for any reason, such decision shall not affect the validity of the remaining parts of this ordinance. SECTION S. Effective Date. This ordinance shall be published in the official newspaper of the city and shall take full force and effect five (5) days after the date of publication. A summary of this ordinance in the form of the ordinance title may be published in lieu of publishing the 46 Ordinance No. _-20 Page 16 of 16 ordinance in its entirety. PASSED by the City Council of the City of Port Orchard, APPROVED by the Mayor and attested by the City Clerk in authentication of such passage this day of 2025. Robert Putaansuu, Mayor ATTEST: Brandy Wallace, MMC, City Clerk APPROVED AS TO FORM: Sponsored by: Charlotte A. Archer, City Attorney EFFECTIVE DATE: Jay Rosapepe, Council Member 47 ��m City of Port Orchard OORCHARD 216 Prospect Street, Port Orchard, WA 98366 (360) 876-4407 • FAX (360) 895-9029 Agenda Staff Report Business Items: Adoption of an Ordinance Setting the amount of Property Tax to be levied for Year 2026, Pursuant to RCW 84.55.120 (Crocker) Meeting Date: October 28, 2025 Prepared By: Noah Crocker, M.B.A., Finance Director Presenter: Noah Crocker, M.B.A., Finance Director Summary and Background: The City published notices on September 26th, and October loth, 2025 for a public hearing on revenues sources and property tax for 2026 to be held on October 14. On October 14th 2025, the City Council held a public hearing on revenue sources for the current expense (general fund) budget. The hearing included a presentation and discussion on property tax considered for collection in 2026. Below is a comparison of next year's levy amount to this year's levy amount. State law (RCW 84.52.043) establishes maximum levy rates for the various types of taxing districts (the state, counties, cities and towns, fire districts, library districts and the like). The total City of Port Orchard 2026 property tax levy amount is estimated to be $4,273,525, based upon an estimated $1.097402 per thousand of current total assessed value of $3,866,371,519. The 2026 amount is estimated until the final levy calculation is completed by the Kitsap County Assessor. Pursuant to RCW 84.55.120 the City Council is required to adopt a separate ordinance specifically authorizing an increase in the regular property tax levy in terms of both dollars and percentage increase from the previous year's levy. By this Ordinance, the City Council would authorize an increase of $0 which is a 0% increase from the previous year, exclusive of additional revenue resulting from new construction, improvements to property, newly constructed wind turbines, solar, biomass, and geothermal facilities, and any increase in the value of state assessed property, any annexations that have occurred and refunds made. Relationship to Comprenhensive Plan: Funding from this levy supports the Current Expense and Street fund considered to be the General Fund. Recommendation: Council Finance Committee recommends approval of the Ordinance. 48 Motion for Consideration: I move to adopt Ordinance No. OXX-25, setting the 2026 property tax levy and the amount of property taxes to be raised for the budget year of 2026. Has item been presented to Committee/Work Study? If so, which one: N/A Fiscal Impact: The estimated property tax levy will provide $4,273,525 and will be budgeted within the Current Expense Fund No. 001 and Street Fund No. 002 for fiscal year 2026. Alternatives: Do not approve and provide alternative guidance Attachments: 2-Final_2026_Property_Tax_Levy_Ordinance(11130301.1).docx 49 ORDINANCE NO. AN ORDINANCE OF THE CITY OF PORT ORCHARD, WASHINGTON, SETTING THE AMOUNT OF PROPERTY TAXES TO BE LEVIED FOR THE YEAR 2026 PURSUANT TO RCW 84.55.120; PROVIDING FOR SEVERABILITY AND PUBLICATION; AND SETTING AN EFFECTIVE DATE. WHEREAS, the City Council of the City of Port Orchard (taxing district #8710) has met and considered its budget for the calendar year 2026; and WHEREAS, the City's actual levy amount from the previous year was $4,049,018; and WHEREAS, the population of the City is more than 10,000; WHEREAS, the City intends, pursuant to RCW 84.55.092 to bank its available but unused levy capacity for 2026; and WHEREAS, on October 14, 2025, the City Council held a duly -noticed public hearing to consider revenue sources for the City's 2025-2026 budget; now, therefore, THE CITY COUNCIL OF THE CITY OF PORT ORCHARD, WASHINGTON, DO HEREBY ORDAIN I_ . J9J4JU9JTiTEJ SECTION 1: An increase in the regular property tax levy is hereby authorized for the levy to be collected in the 2026 tax year. SECTION 2: The dollar amount of the increase over the actual levy amount from the previous year shall be $0 which is a percentage increase of 0% from the previous year. This increase is exclusive of additional revenue resulting from new construction, improvements to property, newly constructed wind turbines, solar, biomass, and geothermal facilities, and any increase in the value of state assessed property, any annexations that have occurred and refunds made. SECTION 3. Severability. If any section, sentence, clause or phrase of this Ordinance should be held to be unconstitutional or unlawful by a court of competent jurisdiction, such invalidity or unconstitutionality shall not affect the validity or constitutionality of any other section, sentence, clause or phrase of this Ordinance. SECTION 4. Publication. This Ordinance shall be published by an approved summary consisting of the title. SECTION 5. Effective Date. This Ordinance shall take effect and be in full force and effect 11130301.1 - 50 Ordinance No. five days after publication, as provided by law. Page 2 of 2 PASSED by the City Council of the City of Port Orchard, SIGNED by the Mayor and attested by the Clerk in authentication of such passage this 28th day of October, 2025. Robert Putaansuu, Mayor ATTEST: Brandy Wallace, MMC, City Clerk APPROVED AS TO FORM: Charlotte A. Archer, City Attorney PUBLISHED: EFFECTIVE DATE: 11130301.1 - 51 0�4 City of Port Orchard ORCHARD 216 Prospect Street, Port Orchard, WA 98366 7� (360) 876-4407 • FAX (360) 895-9029 Agenda Staff Report Business Items: Adoption of an Ordinance on the Mid -Biennial Review and Amendments to the 2025- 2026 Biennial Budget (Crocker) Meeting Date: October 28, 2025 Prepared By: Noah Crocker, M.B.A., Finance Director Presenter: Noah Crocker, M.B.A., Finance Director Summary and Background: This Ordinance amends Ordinance No. 018-24, adopting the 2025 — 2026 Biennial Budget (as previously amended by Ord. No. 005-25 and Ord. No. 010-25). As established by RCW 35A.34.130, the City is required to conduct a mid -biennial review of the City's biennial budget. This review shall occur no sooner than eight months after the start of the biennium (September 1) and no later than the close of the fiscal year (December 31). Consistent with this timeline, the Mayor, in consultation with Staff, proposed modifications to the Biennial Budget for the City Council's review. The City Council has undertaken a thorough review of the proposed modifications. The Finance Committee met and reviewed the proposed modifications to the budget at its regular meeting on October 14, 2025. Additionally, the City Council held a public hearing on revenues sources and property tax at its regular meeting on October 14, 2025. The City Council held a public hearing on the mid -biennial review on October 21, 2025 during the work study session, which allowed the City Council to review the proposed modifications to the city budget, receive public comment, and provided additional direction to staff for additional modifications. The City focused its criteria for mid -year modification to those items that are necessary corrections, are required by contract, law or need, and have large capital and operational budgetary impacts. This proposed budget amendment Ordinance provides for additional expenditure authority of 52 $10,323,144 as identified in the budget amendment table included with the Ordinance. These biennial budget amendments adds new positions in the city and accordingly adjusts FTE, as identified in Exhibit A -Personnel list. These amendments also provide for three additional vehicles to the ERR fleet and one modification (of a vehicle type), provide for additional revenue adjustments to fund balance and to recognize anticipated and grant proceeds. Relationship to Comprenhensive Plan: Parks -South Kitsap Community Events Center & Plaza Facilities - Lloyd Parkway Improvements Transportation -TIP 1.16 SR166/Bay Street, TIF 1.22 Fredrick Ave Improvement (Prospect to Waterfront) Storm -Annapolis Creek Culvert Replacement, Ruby Creek Culvert Replacement Recommendation: Staff recommends approval of the Ordinance, as presented. Motion for Consideration: I move to adopt an Ordinance Amending Ordinance No. 018-24, the 2025 — 2026 Biennial Budget for the City of Port Orchard. Has item been presented to Committee/Work Study? If so, which one: Work Study Fiscal Impact: The 2025-2026 Biennial Budget amendment increases expenditure authority by $10,323,144. Alternatives: Ordinance No. OXX-25, recognizes changes to the Budget not known at the time of adoption of the 2025 — 2026 Biennial Budget. Failure to formalize these changes by Ordinance results in a budget not reflective of authorized revenue and expense. The city would be out of compliance with accepted budgeting procedures and subject to an audit finding. Attachments: Final-2025.10.28-Ordinance Amendment 2025-2026 Biennial Budget.docx Exhibit A -Salary Schedule -Clean Copy.pdf Exhibit A -Salary Schedule -Redline.pdf 1)Information Only -Mid -Biennial Budget Review Schedule 2025-2026.pdf 2)Information Only-2025.10.28-Summary & Highlights.pdf 3)Information Only-2025.10.28-Income Statement -Budget Amendment.pdf 3a)lnformation Only-2025.10.28-Income Statement-Modified-Operations.pdf 4)Information Only -Detail Adjustments-2.pdf 5)Information Only-2025.10.28-2025-2026 Capital Budget.pdf 6)Information Only -Resolution 009-23 - Ordinance - Council Compensation. pdf 53 ORDINANCE NO. **-25 AN ORDINANCE OF THE CITY OF PORT ORCHARD, WASHINGTON, RELATING TO THE BIENNIAL BUDGET FOR THE YEARS 2025-2026; AMENDING ORDINANCE NO. 018-24, AS AMENDED BY ORDINANCE NO. 005-25 AND ORDINANCE NO. 010-25, FOR THE MID -BIENNIAL REVIEW TO RECOGNIZE EXPENDITURES AND REVENUES NOT ANTICIPATED AT THE TIME OF THE ADOPTION OF THE 2025-2026 BIENNIAL BUDGET; PROVIDING FOR TRANSMITTAL TO STATE; PROVIDING FOR PUBLICATION; AND SETTING AN EFFECTIVE DATE. WHEREAS, the City of Port Orchard adopted its 2025 — 2026 Biennial Budget via Ordinance No. 018-24, which was previously amended by Ordinance No. 005-25 and Ordinance No. 010-25; and WHEREAS, the City desires to keep current on necessary budget amendments; and WHEREAS, per RCW 35.34.130, the City has conducted a timely mid -biennial review of the biennial budget; and WHEREAS, the City Finance Committee met on October 14, 2025, to review the Mayor's proposed mid -biennium budget modifications and made recommendations; and WHEREAS, the City published notices on September 26th, and October loth, 2025 for a public hearing on revenues sources and property tax for 2026, to be held on October 14, 2025; and WHEREAS, the City Council held a public hearing on revenues sources and property tax on October 14, 2025; and WHEREAS, the City published notices on October loth, and October 17, 2025 for a public hearing on the mid -biennial review and modification to the 2025-2026 biennial budget to be held on October 21St, 2025; and WHEREAS, the City Council held a comprehensive work study session and public hearing on the 2025-2026 mid -biennial budget on October 21, 2025 and made recommendations to the budget; and WHEREAS, the City Council acted to adopt the 2026 Property Tax Levy at its public meeting on October 28, 2025; and WHEREAS, these amendments include a compensation increase for non -represented employees of 2.7%, effective first full pay period of 2026, which starts January 11, 2026; and 11130346.1 - 366922 - 0001 54 WHEREAS, these amendments include the compensation adjustment for Council seats 2, 3, 6 and at -large compensation, per Resolution No. 009-23, adopted prior to the current term for these positions; and WHEREAS, these amendments adjust the Personnel List of represented employees per the terms of the various applicable contracts effective the first full pay period of January 2026; and WHEREAS, these amendments modify the Equipment Rental Revolving Fund budget to add three additional vehicles to the City's fleet and make modifications to change a previously approved vehicle to a bucket truck; and WHEREAS, the City evaluated its personnel needs for the 2025-2026 Biennium and this amendment modifies Exhibit A to Ordinance No. 018-24, as amended by Ordinance No. 005-25 and Ordinance No. 010-25, to modify personnel positions and salary table to meet identified needs, as follows; and WHEREAS, the City identified the need to create a new Communications Specialist and fund 1 Full Time Equivalent (1 FTE); and WHEREAS, the City identified the need to provide funding for an Accounting Assistant III and fund 1 Full Time Equivalent (1 FTE); and WHEREAS, the City identified the need to increase funding to increase the hours for a Permit Center Assistant from part time to a full-time position (1 FTE); and WHEREAS, the City identified the need to add 1 FTE Associate Planner (1 FTE) to provide an opportunity for a future promotion if warranted; and WHEREAS, the City identified the need to create a new DCD Plans Examiner/Building Inspector III and fund 1 Full Time Equivalent (1 FTE); and WHEREAS, the City identified the need to add and fund 1 Full Time Equivalent (1 FTE) Police Officer; and WHEREAS, the City identified the need to create a new Public Works Senior Project Coordinator/Inspector and fund 1 Full Time Equivalent (1 FTE); and WHEREAS, the City identified the need to create a new Public Works Office Assistant II and fund 1 Full Time Equivalent (1 FTE); and WHEREAS, the City identified the need to provide funding for 4 additional Full Time Equivalent (4 FTE) Public Works Maintenance Technician II positions (1 FTE for Parks, 1 FTE for 11130346.1 - 366922 - 0001 55 Streets, 1 FTE for Sewer, 1 FTE for Storm); and WHEREAS, these amendments also include the allocation of funding for a downtown revitalization grant program, which will be implemented following the City Council's adoption of a policy and associated program for the expenditure of these funds; and WHEREAS, the City desires to adjust all ending fund balances by incorporating changes in revenues, and expenses; and WHEREAS, the City desires to adjust the budget for revenues identified for funds 001, 002, 103, 302, 304, 411, 413, 414, 421, 423, 433, 500; and WHEREAS, these amendments make necessary adjustments to accounts and/or Funds, by means of appropriation adjustments that could not have been anticipated at the time of passage of the 2025 — 2026 Biennial Budget, as provided in RCW 35A.33.120; and WHEREAS, the Council desires to provide additional expenditure authority and appropriations consistent with the mid -biennial review and modifications as presented, now, therefore; THE CITY COUNCIL OF THE CITY OF PORT ORCHARD, WASHINGTON, DO ORDAIN AS FOLLOWS: SECTION 1. The 2025 — 2026 Biennial Budget, and enabling Ordinance No. 018-24, as amended by Ordinance No. 005-25 and Ordinance No. 010-25, is hereby amended to reflect the following: 11130346.1 - 366922 - 0001 56 2025-2026 Biennial Budget °und No. I Fund Name I Type 0rdinance-018-24 0rdinance-005-25 0rdinance-010-25 Adjustment 0rdinance-Oxx-2: 001 Current Expense Fund Revenue $ 38.648.000 $ 48.084.066 $ 48.084.066 $ 1.963.300 $ 50.047.366 Expense $ 38,648,000 $ 48,084,066 $ 48,084,066 $ 1,963,300 $ 50,047,366 002 City Street Revenue $ 11,019,400 $ 12,138,763 $ 12,138,763 $ 344,434 $ 12,483,197 Expense $ 11,019,400 $ 12,138,763 $ 12,138,763 $ 344,434 $ 12,483,197 003 Stabilization Revenue $ 3,285,000 $ 3,365,385 $ 3,365,385 $ 3,365,385 Expense $ 3,285,000 $ 3,365,385 $ 3,365,385 $ 3,365,385 103 Criminal Justice Revenue $ 1,272,300 $ 1,454,126 $ 1,454,126 $ (50,000) $ 1,404,126 Expense $ 1,272,300 $ 1,454,126 $ 1,454,126 $ (50,000) $ 1,404,126 104 Special Investigative Unit Revenue $ 104,000 $ 106,096 $ 106,096 $ 106,096 Expense $ 104,000 $ 106,096 $ 106,096 $ 106,096 107 Community Events Revenue $ 479,400 $ 676,784 $ 676,784 $ 676,784 Expense $ 479,400 $ 676,784 $ 676,784 '$ $ 676,784 108 Paths & Trails Revenue $ 19,000 $ 19,989 $ 19,989 $ 19,989 Expense $ 19,000 $ 19,989 $ 19,989 $ 19,989 109 Real Estate Excise Tax Revenue $ 9,481,900 $ 9,724,427 $ 9,724,427 $ 9,724,427 Expense $ 9,481,900 $ 9,724,427 $ 9,724,427 $ 9,724,427 111 Impact Fee Revenue $ 17,230,600 $ 17,798,326 $ 17,798,326 $ 17,798,326 Expense $ 17,230,600 $ 17,798,326 $ 17,798,326 �$ $ 17,798,326 206 Bond Redemption Fund Revenue $ 2,997,300 $ 3,010,271 $ 3,010,271 $ 3,010,271 Expense $ 2,997,300 $ 3,010,271 $ 3,010,271 $ 3,010,271 302 Capital Construction Revenue $ 4,942,100 $ 3,510,612 $ 6,110,612 $ 133,728 $ 6,244,340 Expense $ 4,942,100 $ 3,510,612 $ 6,110,612 $ 133,728 $ 6,244,340 304 Street Capital Projects Revenue $ 22,097,500 $ 21,942,392 $ 21,942,392 $ 4,005,000 $ 25,947,392 Expense $ 22,097,500 $ 21,942,392 $ 21,942,392 $ 4,005,000 $ 25,947,392 411 Water - Operations Revenue $ 11,536,700 $ 11,571,162 $ 11,571,162 $ 386,100 $ 11,957,262 Expense $ 11,536,700 $ 11,571,162 $ 11,571,162 $ 386,100 $ 11,957,262 412 Water -Stabilization Revenue $ 1,150,000 $ 1,171,576 $ 1,171,576 $ 1,171,576 Expense $ 1,150,000 $ 1,171,576 $ 1,171,576 $ 1,171,576 413 Water -Capital Projects Revenue $ 13,359,800 $ 18,940,623 $ 18,940,623 $ 384,464 $ 19,325,087 Expense $ 13,359,800 $ 18,940,623 $ 18,940,623 $ 384,464 $ 19,325,087 414 Water- Debt Service Revenue $ 3,858,000 $ 3,992,105 $ 3,992,105 $ (9,800) $ 3,982,305 Expense $ 3,858,000 $ 3,992,105 $ 3,992,105 $ (9,800) $ 3,982,305 421 Storm Drainage -Operations Revenue $ 7,114,700 $ 7,972,943 $ 7,972,943 $ 1,350,000 $ 9,322,943 Expense $ 7,114,700 $ 7,972,943 $ 7,972,943 $ 1,350,000 $ 9,322,943 422 Storm Drainage -Stabilization Revenue $ 665,000 $ 677,048 $ 677,048 $ 677,048 Expense $ 665,000 $ 677,048 $ 677,048 $ 677,048 423 Storm Drainage -Capital Projects Revenue $ 2,867,500 $ 3,379,892 $ 3,379,892 $ 999,344 $ 4,379,236 Expense $ 2,867,500 $ 3,379,892 $ 3,379,892 $ 999,344 $ 4,379,236 424 Storm Drainage -Debt Service Revenue $ 665,700 $ 665,700 $ 665,700 $ 665,700 Expense $ 665,700 $ 665,700 $ 665,700 $ 665,700 431 Sewer- Operations Revenue $ 18,484,500 $ 21,198,883 $ 21,198,883 '$ - $ 21,198,883 Expense $ 18,484,500 $ 21,198,883 $ 21,198,883 $ 21,198,883 432 Sewer -Stabilization Revenue $ 1,670,000 $ 1,703,655 $ 1,703,655 $ 1,703,655 Expense $ 1,670,000 $ 1,703,655 $ 1,703,655 $ 1,703,655 433 Sewer -Capital Projects Revenue $ 20,894,800 $ 27,833,846 $ 27,833,846 $ 84,469 $ 27,918,315 Expense $ 20,894,800 $ 27,833,846 $ 27,833,846 $ 84,469 $ 27,918,315 434 Sewer - Debt Service Revenue $ 3,652,100 $ 3,690,329 $ 3,690,329 $ 3,690,329 Expense $ 3,652,100 $ 3,690,329 $ 3,690,329 $ 3,690,329 500 E R&R Revenue $ 9,644,700 $ 9,417,529 $ 9,417,529 $ 732,105 $ 10,149,634 Expense $ 9,644,700 $ 9,417,529 $ 9,417,529 $ 732,105 $ 10,149,634 632 Wastewater Treatment Facility Revenue $ 9,300,000 $ 9,928,819 $ 9,928,819 $ 9,928,819 Expense $ 9,300,000 $ 9,928,819 $ 9,928,819 $ 9,928,819 Grand Total Revenuel $ 216,440,000 $ 243,975,346 $ 246,575,346 $ 10,323,144 $ 256,898,490 Grand Total Expense $ 216,440,000 $ 243,975,346 $ 246,575,346 $ 10,323,144 $ 256,898,490 SECTION 2. Amended Salary Schedule. Exhibit A to Ordinance No. 018-24, as amended by Ordinance No. 005-25 and Ordinance No. 010-25, for authorized positions, is amended as attached hereto as Exhibit A and incorporated herein by this reference. The new positions and salary adjustments will become effective starting the first full pay period of 2026, which starts January 11, 2026. 11130346.1 - 366922 - 0001 57 SECTION 3. Transmittal. The City Clerk shall transmit a complete, certified copy of the amended budget as adopted to the state auditor and to the Association of Washington Cities per RCW 35.34.130. SECTION 4. Severability. If any section, sentence, clause or phrase of this Ordinance should be held to be unconstitutional or unlawful by a court of competent jurisdiction, such invalidity or unconstitutionality shall not affect the validity or constitutionality of any other section, sentence, clause or phrase of this Ordinance. SECTION 5. Publication. This Ordinance shall be published by an approved summary consisting of the title. A summary of this Ordinance may be published in lieu of the entire ordinance, as authorized by State Law. SECTION 6. Effective Date. This ordinance shall be in full force and effect five (5) days after posting and publication as required by law. PASSED by the City Council of the City of Port Orchard, APPROVED by the Mayor and attested by the Clerk in authentication of such passage this 28th day of October 2025. Rob Putaansuu, Mayor ATTEST: Brandy Wallace, MMC, City Clerk APPROVED AS TO FORM: Charlotte Archer, City Attorney PUBLISHED: EFFECTIVE DATE: 11130346.1 - 366922 - 0001 58 Personnel •.1/11/2026 Elected Officials Positions Wages Mayor 1 Annual 132,092.78 Council (Seats 1,4,5) 3 Bi-Weekly 500.00 Council (Seats 2,3,6) 3 Bi-Weekly 533.01 Council (At Large) 1 Bi-Weekly 533.01 Total Elected 8.00 PositionsPersonnel City Clerk 1 53.47 61.99 Community Development Director 1 75.86 87.98 Finance Director 1 77.34 89.69 Human Resources Director 1 64.44 74.73 Chief of Police 1 81.77 94.84 Public Works Director 1 78.96 91.57 Total Mayoral Direct Reports 6.00 Deputy City Clerk 1 39.98 46.36 Communications Specialist 1 39.98 46.36 Human Resources Analyst 1 44.61 51.73 Total Administration 3.00 Deputy Finance Director 1 59.06 68.48 Accounting Assistant III / IT Specialist 1 42.92 49.77 Accounting Assistant III 3 41.47 48.08 Accounting Assistant II 4 34.07 39.51 Accounting Assistant 1 1 30.54 35.41 Information Technology Manager 1 62.45 72.42 IT Support Specialist 1 40.49 46.95 Total Finance/IT 12.00 Deputy Director Community Development 1 57.87 67.12 Permit Center Manager ** 1 41.93 48.63 Permit Technician ** 2 34.13 39.57 Permit Clerk 2 31.49 36.54 Permit Center Assistant 1 27.75 32.19 Principal Planner 1 57.86 67.11 Senior Planner 1 49.57 57.47 Associate Planner* 2 42.81 49.63 Assistant Planner* 1 37.76 43.79 Plans Examiner/Building Inspector III 1 50.30 58.33 Plans Examiner/Building Inspector II 1 42.71 49.54 Building Inspector 1 1 38.48 44.62 Code Enforcement Officer II 1 41.40 48.01 Code Enforcement Officer 1 1 32.66 37.91 Parking Enforcement Officer (2 PT) 1.40 30.91 35.85 Total Community Development 18.40 59 Personnel •.1/11/2026 PositionsPersonnel Municipal Court Judge 0.50 Annual 111,602.55 Municipal Court Administrator 1 53.48 62.01 Lead Clerk 1 33.08 39.53 Court Clerk 1 27.95 33.37 Total Judicial 3.50 Deputy Police Chief 2 74.34 86.21 Police Services Coordinator 1 37.21 44.45 Police Services Specialist 3.70 27.82 33.21 Sergeant 5 58.66 64.95 Police Officer 20 43.66 54.03 Total Police Department 31.70 City Engineer 1 66.97 77.66 Assistant City Engineer 1 60.41 70.06 Operations and Utility Manager 1 58.31 67.63 Operations Supervisor 1 47.17 54.70 Utility Supervisor 1 47.17 54.70 Utilities Compliance Specialist 1 39.81 46.13 Civil Engineer II * 1 52.20 60.53 Civil Engineer I * 2 49.36 57.26 GIS/Asset Management Coordinator 1 44.66 51.81 Asset Management Technician 1 32.66 37.91 Senior Project Coordinator/Inspector 1 47.17 54.70 Project Coordinator/Inspector 2 43.46 50.41 Public Works Procurement Specialist 1 41.52 48.15 Public Works Administrative Specialist 1 34.13 39.57 Office Assistant II 1 31.63 36.68 Office Assistant 1 1 27.75 32.19 Lead Mechanic 1 37.05 44.24 Mechanic 1 34.52 41.23 Electrician 1 36.62 43.73 Public Works Lead 5 37.05 44.24 Maintenance Technician II 20 33.48 39.97 Maintenance Technician 1 2 24.93 29.78 Total Public Works 48.00 Seasonal Public Works Hourly 23.37 24.84 Intern Hourly 21.59 23.99 Temporary Employee Hourly 21.59 23.99 Grand Totals22.60 *Only 2 FTE's are funded in the 2025-2026 budget. However, 3 FTE's are listed above to provide for potential promotions. **Planned Retirement will cause a temporary overlap in full time equivalents FTE for the Permit Center Manager and Permit Tech position FTE counts are subject to modification pursuant to City Policy No. 3.17 60 Personnel• • .1/11/2026 Elected Officials Positions• - Mayor 1 Annual 132,092.78 Council (Seats 1,4,5) 3 Bi-Weekly 500.00 Council (Seats 2,3,6) 3 Bi-Weekly 533.01 y a ; A86 Council (At Large) 1 Bi-Weekly 533.01 Total Elected 8.00 PositionsPersonnel City Clerk 1 53.47 61.99 Community Development Director 1 75.86 87.98 Finance Director 1 77.34 89.69 Human Resources Director 1 64.44 74.73 Chief of Police 1 81.77 94.84 Public Works Director 1 78.96 91.57 Total Mayoral Direct Reports 6.00 Deputy City Clerk 1 39.98 46.36 Communications Specialist 1 39.98 46.36 Human Resources Analyst 1 44.61 51.73 Total Administration 3.00 Deputy Finance Director 1 59.06 68.48 Accounting Assistant III / IT Specialist 1 42.92 49.77 A,.,.,,URtiRg Assistant iii 2 41 47 48.03 Accounting Assistant III 3 41.47 48.08 Accounting Assistant II 4 34.07 39.51 Accounting Assistant 1 1 30.54 35.41 Information Technology Manager 1 62.45 72.42 IT Support Specialist 1 40.49 46.95 Total Finance/IT 12.00 Deputy Director Community Development 1 57.87 67.12 Permit Center Manager ** 1 41.93 48.63 Permit Technician ** 2 34.13 39.57 Permit Clerk 2 31.49 36.54 Permit Center Assistant 1.00 27.75 32.19 Permit Center Assistant 0,79 27.75 32.19 Principal Planner 1 57.86 67.11 Senior Planner 1 49.57 57.47 Associate Planner* 2 42.81 49.63 nss .tom 'tea^RGF 4 42.81 49.63 Assistant Planner* 1 37.76 43.79 nesrsta^+m,P'A,ate 4 37.76 43.79 Plans Examiner/Building Inspector 111 1 50.30 58.33 Plans Examiner/Building Inspector II 1 42.71 49.54 Building Inspector 1 1 38.48 44.62 Code Enforcement Officer II 1 41.40 48.01 Code Enforcement Officer 1 1 32.66 37.91 Parking Enforcement Officer (2 PT) 1.40 30.91 35.85 Total Community Development 18.40 61 Personnel• • •1/11/2026 Personnel Municipal Court Judge 0.50 Annual 111,602.55 Municipal Court Administrator 1 53.48 62.01 Lead Clerk 1 33.08 39.53 Court Clerk 1 27.95 33.37 Total Judicial 3.50 Deputy Police Chief 2 74.34 86.21 Police Services Coordinator 1 37.21 44.45 Police Services Specialist 3.70 27.82 33.21 Sergeant 5 58.66 64.95 Police Officer 20 43.66 54.03 Pelise O irta 4-9 43.66 54.03 Total Police Department 31.70 City Engineer 1 66.97 77.66 Assistant City Engineer 1 60.41 70.06 Operations and Utility Manager 1 58.31 67.63 Operations Supervisor 1 47.17 54.70 Utility Supervisor 1 47.17 54.70 Utilities Compliance Specialist 1 39.81 46.13 Civil Engineer II * 1 52.20 60.53 Civil Engineer I * 2 49.36 57.26 GIS/Asset Management Coordinator 1 44.66 51.81 Asset Management Technician 1 32.66 37.91 Senior Project Coordinator/Inspector 1 47.17 54.70 Project Coordinator/Inspector 2 43.46 50.41 Public Works Procurement Specialist 1 41.52 48.15 Public Works Administrative Specialist 1 34.13 39.57 Office Assistant II 1 31.63 36.68 OffiGe Assistant n 9 31-82 36 66 Office Assistant 1 1 27.75 32.19 Lead Mechanic 1 37.05 44.24 Mechanic 1 34.52 41.23 Electrician 1 36.62 43.73 Public Works Lead 5 37.05 44.24 Maintenance Technician II 20 33.48 39.97 nnA.,+o.,;4.,, o To..F n*r,i.;., ii a6 3 45 3$$7 Maintenance Technician 1 2 24.93 29.78 Total Public Works 48.00 Seasonal Public Works Hourly 23.37 24.84 Intern Hourly 21.59 23.99 Temporary Employee Hourly 21.59 23.99 122.60 *Only 2 FTE's are funded in the 2025-2026 budget. However, 3 FTE's are listed above to provide for potential promotions. **Planned Retirement will cause a temporary overlap in full time equivalents FTE for the Permit Center Manager and Permit Tech position FTE counts are subject to modification pursuant to City Policy No. 3.17 62 ep— R_IOCHA D R Mid -Biennial Budget Review Schedule SEPTEMBER 4M - I • Departments provided Budget Status Report • Finance Director reviews Budget Status Report with Mayor • Departments are consulted on possible modifications to the budget • Potential Department Director interview on modifications OCTOBER • October 14, 2025 Council Finance Committee initial review of Status Report • October 14, 2025 Public Hearing on Revenue Sources leading to setting of 2026 Property Tax Levy Collection • October 21, 2025 Work Study Session Mid -Biennial Review modification recommendations • October 21, 2025 Public Hearing on modifications to the Biennial Budget shall be advertised at least once and shall be held no later than the first Monday in December and may be continued from time to time. • October 28, 2025 Ordinance setting 2026 Property Tax Levy Collection • October 28, 2025 Ordinance Adopting Budget Amendments for 2025-02026 • At such hearing, the Council may consider a proposed Ordinance to carry out any modification, subject to the other provisions on RCW 35.34. NOVEMBE JANUARY 0 Finance Director records modifications to the Biennial Budget Highlights of the 2025-2026 Mid -Biennial Review Mayor's Proposed Budget Adjustments Finance Committee's Proposed added Budget Adjustments Fund 001-Current Expense: Governmental- Operational Funds $866,064 Clean Up Expense: $273,033 This includes library roof repair and increases equipment operating expenses New Requests: $593,031 Highlights: • Givens Park Master Plan $150,000 • PW Facility Supplies & Maintenance $132,000 • Mayor Request (Kitsap Community Resources) $50,000 • Mayor Request Website $50,000 • PW Parks Playground $50,000 • Finance: Budget Software $25,000 • PW Janitorial Services $23,100 • Mayor Request Office Furniture $15,000 • DCD Smart Gov Training and upgrade $14,000 • Mayor Request Animal Contract $9,250 These requests are to capture increased contract costs for various city services. The requests ad- dress the increase in costs for the additional facilities the city has acquired by raising cost for sup- plies, furniture, and various service contracts. The new requests also increase resources for City parks by adding additional playground equipment, increasing supplies and services and create a mas- ter plan for Givens Park. They support our police department by adding costs for education, supplies, and services. DCD budget is increased for permit software training and upgrades. Finance budget is increased to add public facing budget software to provide greater transparency and communication. Admin department budget has been increased for a city website upgrade, strategic management consultant, and increasing the KCR contract for affordable housing. It also includes the construction of TIP 1.16 SR166/Bay Street water improvements. It also includes increased costs related to supplies and services for the operation of equipment including gas, insurance, etc. 1 64 Highlights of the 2025-2026 Mid -Biennial Review Fund 002-City Street Fund: $133,674 Clean Up Expense: $46,674 This includes increased costs for operations and maintenance of streets and street equipment. New Request $87,000 • Striping & Buttons Increase $30,000 • Signal Maintenance Contract Increase $15,000 • Snow & Ice Increase $10,000 • Water Trailer & Deicer Tank Replacement $32,000 The street fund has adjustments in the budget for increase costs for striping , signal maintenance, and snow & ice supplies. It also includes purchases of a new equipment trailer for pressure washing and a deicer tank. It also includes increased costs related to supplies and services for the operation of equipment including gas, insurance, etc. Governmental— Special and Debt Funds Fund 103-Criminal Justice: Clean Up Expense: $49,000 • Payroll $24,000 • Axon -Interview Room Lease $25,000 The street fund has adjustments in the budget for increase costs for payroll and interview room con- tract. Governmental- Capital Construction Funds Fund 302-Capital Construction: • PA#18 SKCEC & Plaza PW Shop Improvements $208,728 Clean Up Expense: $4,603 New Request $204,125 $129,125 $75,000 The new requests are for the South Kitsap Community Event Center and recently purchased Public Work renovations and improvements to meet our needs. Fund 304-Street Capital Construction: New Requests $3,630,000 • TIP 1.16 SR166 Design -Street $3,630,000 The new request is for the construction of TIP 1.16 SR166/Bay Street road improvement. 2 65 Highlights of the 2025-2026 Mid -Biennial Review Enterprise Operational and Capital Funds Fund 411-Water Operations: $306,045 Clean Up Expense: $36,045 New Request $270,000 • Water - Foster funding $270,000 The new requests for the water fund are for continuing the Foster Pilot Program. Fund 413-Water Capital: • TIP 1.16 SR166 Construction -Water New Request $384,464 $384,464 The new request is for the construction of TIP 1.16 SR166/Bay Street water improvements. Fund 414-Water Debt Service: Cleanup ($9,800) Fund 421-Stormwater Drainage Operations: • Cues Push Camera $57,985 Clean Up Expense: $51,985 New Request $6,000 $6,000 This is a replacement for our current camera which is has broken. This camera inspection tool is for a small diameter pipe such as side laterals connections and small storm drain lines. Fund 423-Stormwater Drainage Capital: New Requests $1,290,742 • Annapolis Creek Design $525,000 • Ruby Creek Design $250,000 • TIP 1.16 SR166 Construction -Storm $515,742 The new requests are for the construction of TIP 1.16 SR166/Bay Street storm improvements, An- napolis Creek Culvert design, and Ruby Creek Culvert design. Both Annapolis and Ruby Creek Design projects have grant funding from RCO which requires a 15% local match. Fund 431-Sewer Operations: • Cues Push Camera $51,863 Clean Up Expense: $45,863 New Request $6,000 $6,000 This is a replacement for our current camera which is has broken. This camera inspection tool is for a small diameter pipe such as side laterals connections and small storm drain lines. 3 66 Highlights of the 2025-2026 Mid -Biennial Review ERR Operational and Capital Purchases Fund 433-Sewer Capital: • TIP 1.16 SR166 Construction -Water New Requests $84,469 The new request is for the construction of TIP 1.16 SR166/Bay Street sewer improvements. Fund 500— ERR: $701,905 Clean Up Expense: $413,600 This cleanup items includes increases in payroll, supplies, services, major repairs, and insurance costs. Also, it includes increases in purchase costs for items already approved by council. The new requests for ER&R include new vehicles: • Ford F250 Sewer • Ford F250 Storm Drainage • Additional Police Vehicle New Request $288,305 $70,000 $70,000 $100,000 • Overhead Oil System $19,000 • Lift gate for Ford Truck $8,750 The new requests for vehicles are associated with corresponding personnel requests. The addition of an overhead oiler system at the PW Shop and a liftgate conversion for an existing truck. Modification to the Fleet: • ERR#1036 • Remove: Hook lift Truck • Add: Bucket Truck ($8,000) ($248,000) $256,000 The modification request is to remove the request for hooklift truck from the budget and replace it with a Bucket Truck for Public Works. This requests captures savings from another vehicles that was pur- chased below budget to offset the cost. The bucket truck will be used for tree trimming, facility mainte- nance, chimes and lights, power pole locations and other jobs which require employees to be lifted safe- ly to elevated heights. 4 67 Highlights of the 2025-2026 Mid -Biennial Review Personnel Requests Personnel Requests— $1,868,350 • Admin-Communication Specialist This position has been requested to increase communication with the community & provide ad- ditional support for the clerks office. • DCD-Plans Examiner/Building Inspector III This position has been requested to increase in-house plan review and inspection services and reduce reliance upon contracted services. • DCD-Permit Center Assistant (Part-time to full time) This will provide additional hours to increase customer service. DCD-Associate and Assistant Planners This will add 1 FTE to Associate Planner and only impact the FTE table. While the table shows 1 FTE for Assistant and 2 for Associate, only 2 FTE's are funded and will be filled. This change in the FTE table provides flexibility to promote on Assistant Planner to on Associate once warranted and qualified. • Finance -Accounting Assistant III This position will address increase workloads do to City growth in personnel, projects, and chang- es to financial reporting requirements. • Police Officer This position will boost patrol during peak hours, reduce overtime and improve community en- gagement. • PW-Senior Project Coordinator/Inspector (Promotion) This position will become a lead at the new location to coordinate project and inspection services. • PW-Project Coordinator/Inspector This position will address increase workloads do to City growth and projects. • PW-Office Assistant II This position will provide administration support for management across all public works facili- ties. This allows the City to dedicate administrative support at the shop locations. • PW-MTII Parks (1 FTE), PW-MTII Street (1 FTE), PW-MTII Sewer (1 FTE), PW-MTII Storm (1 FTE) These positions will address increase workloads do to City growth. The Sewer MT 11 will be fund- ed with new revenue as well as the Storm MT 11. The Parks position is needed to address the city's growing parks and facilities demands. The Street position will add a needed member to help pre - Personnel Request: Fund Total • 001: $785,000 • 002: $256,700 • 103: $100,000 • 411: $119,600 • 421: $308,750 • 431: $298,300 5 68 Highlights of the 2025-2026 Mid -Biennial Review Finance Committee Reauests Finance Committee Requests— $607,000 • Prosecution Services 2025 $24,000 • Prosecution Services 2026 $23,000 • Additional LTAC Funding $35,000 • Waterfront Beautification Improvements $100,000 • License Plate Reader (LPR) System $50,000 • Frederick Street Design Improvements $375,000 Prosecuting services have increase per the new State requirements. The Economic Develop- ment Committee and Finance Committee each separately advocated for additional funding from the JAC fund as well as the general fund to increase waterfront amenities. The water front improvements will include additional benches, banners, murals while the LTAC could provide additional funding to support community events such as FIFA. The License Plate Reader system will install camera equipment on parking enforcement vehicles to provide more efficient and broader parking enforcement services. Lastly, Fredrick Street 60% Design is to provide the City with information to be more prepared for future construction. City Council Request • Downtown Revitalization Program Request Not Funded $1,157,650 • On Call Building Consultant $150,000 • Park & Rec Open Space Plan $75,000 • Police Officers (2 FTE) $565,200 • PW-MTII Storm (1 FTE) $143,450 • Software Locate Module $21,000 • Zero Turn Mower & Trailer $38,000 • City Hall Lock Additions $15,000 • Utility Operations Center Imp $150,000 $100,000 6 69 2025-2026 Biennial 2025-2026 2025-2026 Amended • MBeginning M$ Budget Ord. 010-25 Adjustments Biennial Budget Fund Balance 101,222,396 $ - $ 101,222,396 Revenue $ 145,352,951 $ 10,323,144 $ 155,676,095 Expense $ 164,701,800 $ 15,494,092 $ 180,195,892 Ending Fund Balance $ 81,873,546 $ (5,170,948) $ 76,702,598 2025-2026 Biennial 2025-2026 2025-2026 Amended Budget Ord. 010-25 Adjustments Biennial Budget Total Revenue $ 246,575,346 $ 10,323,144 $ 256,898,490 Total Expense $ 246,575,346 $ 10,323,144 $ 256,898,490 Fund: 002 -City Street Fund 2025-2026 Biennial 2025-2026 2025-2026 Amended Budget Ord. 010-25 Adjustments Biennial Budget Beginning Fund Balance $ 4,448,363 $ - $ 4,448,363 Revenue $ 7,690,400 $ 344,434 $ 8,034,834 Expense $ 10,062,439 $ 390,374 $ 10,452,813 Ending Fund Balance $ 2,076,324 $ (45,940) $ 2,030,384 2025-2026 Biennial 2025-2026 2025-2026 Amended Fund: 003 -Stabilization Fund Budget Ord. 010-25 Adjustments Biennial Budget Beginning Fund Balance $ 3,235,385 $ - $ 3,235,385 Revenue $ 130,000 $ - $ 130,000 Expense $ - $ - $ - Ending Fund Balance $ 3,365,385 $ - $ 3,365,385 70 2025-2026 Biennial 2025-2026 2025-2026 Amended Fund: 103 -Criminal Justice Budget Ord. 010-25 Adjustments Biennial Budget Beginning Fund Balance $ 576,826 $ - $ 576,826 Revenue $ 877,300 $ (50,000) $ 827,300 Expense $ 1,207,340 $ 149,000 $ 1,356,340 Ending Fund Balance $ 246,786 $ (199,000) $ 47,786 Fund: 104 -Special Investigative Unit 2025-2026 Biennial 2025-2026 2025-2026 Amended Budget Ord. 010-25 Adjustments Biennial Budget Beginning Fund Balance $ 106,096 $ - $ 106,096 Revenue $ - $ - $ - Expense $ 8,000 $ - $ 8,000 Ending Fund Balance $ 98,096 $ - $ 98,096 2025-2026 Biennial 2025-2026 2025-2026 Amended Fund: 107 -Community Events Budget Ord. 010-25 Adjustments Biennial Budget Beginning Fund Balance $ 472,384 $ - $ 472,384 Revenue $ 204,400 $ - $ 204,400 Expense $ 204,400 $ 35,000 $ 239,400 Ending Fund Balance $ 472,384 $ (35,000) $ 437,384 2025-2026 Biennial 2025-2026 2025-2026 Amended Fund: 108 -Paths &Trails Budget Ord. 010-25 Adjustments Biennial Budget Beginning Fund Balance $ 17,989 $ - $ 17,989 Revenue $ 2,000 $ - $ 2,000 Expense $ - $ - $ - Ending Fund Balance $ 19,989 $ - $ 19,989 71 2025-2026 Biennial 2025-2026 2025-2026 Amended Fund: 109 -Real Estate Excise Tax Budget Ord. 010-25 Adjustments Biennial Budget Beginning Fund Balance $ 6,523,527 $ - $ 6,523,527 Revenue $ 3,200,900 $ - $ 3,200,900 Expense $ 8,249,300 $ - $ 8,249,300 Ending Fund Balance $ 1,475,127 $ - $ 1,475,127 Fund: 111 -Impact Mitigation Fee 2025-2026 Biennial 2025-2026 2025-2026 Amended Budget Ord. 010-25 Adjustments Biennial Budget Beginning Fund Balance $ 11,214,726 $ - $ 11,214,726 Revenue $ 6,583,600 $ - $ 6,583,600 Expense $ 6,074,051 $ 4,134,125 $ 10,208,176 Ending Fund Balance $ 11,724,275 $ (4,134,125) $ 7,590,150 2025-2026 Biennial 2025-2026 2025-2026 Amended Fund: 206 -Bond Redemption Fund Budget Ord. 010-25 Adjustments Biennial Budget Beginning Fund Balance $ 517,371 $ - $ 517,371 Revenue $ 2,492,900 $ - $ 2,492,900 Expense $ 1,997,300 $ - $ 1,997,300 Ending Fund Balance $ 1,012,971 $ - $ 1,012,971 2025-2026 Biennial 2025-2026 2025-2026 Amended Fund: 304 -Street Capital Projects Budget Ord. 010-25 Adjustments Biennial Budget Beginning Fund Balance $ 952,112 $ - $ 952,112 Revenue $ 20,990,280 $ 4,005,000 $ 24,995,280 Expense $ 21,031,589 $ 4,005,000 $ 25,036,589 Ending Fund Balance $ 910,803 $ - $ 910,803 72 2025-2026 Biennial 2025-2026 2025-2026 Amended Fund: 412 -Water Stabilization Budget Ord. 010-25 Adjustments Biennial Budget Beginning Fund Balance $ 1,171,576 $ - $ 1,171,576 Revenue $ - $ - $ - Expense $ - $ - $ - Ending Fund Balance $ 1,171,576 $ - $ 1,171,576 Fund: 413 -Water Capital 2025-2026 Biennial 2025-2026 2025-2026 Amended Budget Ord. 010-25 Adjustments Biennial Budget Beginning Fund Balance $ 8,436,823 $ - $ 8,436,823 Revenue $ 10,503,800 $ 384,464 $ 10,888,264 Expense $ 9,068,050 $ 725,814 $ 9,793,864 Ending Fund Balance $ 9,872,573 $ (341,350) $ 9,531,223 2025-2026 Biennial 2025-2026 2025-2026 Amended Fund: 414 -Water Debt Service Budget Ord. 010-25 Adjustments Biennial Budget Beginning Fund Balance $ 1,285,005 $ - $ 1,285,005 Revenue $ 2,707,100 $ (9,800) $ 2,697,300 Expense $ 2,707,000 $ (9,800) $ 2,697,200 Ending Fund Balance $ 1,285,105 $ - I $ 1,285,105 2025-2026 Biennial 2025-2026 2025-2026 Amended Fund: 421 -Storm Drainage Utility Budget Ord. 010-25 Adjustments Biennial Budget Beginning Fund Balance $ 2,328,243 $ - $ 2,328,243 Revenue $ 5,644,700 $ 1,350,000 $ 6,994,700 Expense $ 5,885,900 $ 882,477 $ 6,768,377 Ending Fund Balance $ 2,087,043 $ 467,523 $ 2,554,566 73 2025-2026 Biennial 2025-2026 2025-2026 Amended Fund: 422 -Storm Drainage Stabilization Budget Ord. 010-25 Adjustments Biennial Budget Beginning Fund Balance $ 602,048 $ - $ 602,048 Revenue $ 75,000 $ - $ 75,000 Expense $ - $ - $ - Ending Fund Balance $ 677,048 $ - $ 677,048 Fund: 423 -Storm Drainage Capital Facil 2025-2026 Biennial 2025-2026 2025-2026 Amended Budget Ord. 010-25 Adjustments Biennial Budget Beginning Fund Balance $ 942,392 $ - $ 942,392 Revenue $ 2,437,500 $ 999,344 $ 3,436,844 Expense $ 1,460,000 $ 1,290,742 $ 2,750,742 Ending Fund Balance $ 1,919,892 $ (291,398) $ 1,628,494 2025-2026 Biennial 2025-2026 2025-2026 Amended Fund: 424 -Storm Drainage Debt Service Budget Ord. 010-25 Adjustments Biennial Budget Beginning Fund Balance $ - $ - $ - Revenue $ 665,700 $ - $ 665,700 Expense $ 442,700 $ - $ 442,700 Ending Fund Balance $ 223,000 $ - $ 223,000 Fund: 431 -Sewer Operating 2025-2026 Biennial 2025-2026 2025-2026 Amended Budget Ord. 010-25 Adjustments Biennial Budget Beginning Fund Balance $ 8,754,383 $ - $ 8,754,383 Revenue $ 12,444,500 $ - $ 12,444,500 Expense $ 16,907,512 $ 434,632 $ 17,342,144 Ending Fund Balance $ 4,291,371 $ (434,632) $ 3,856,738 2025-2026 Biennial 2025-2026 2025-2026 Amended Fund: 432 -Sewer Stabilization Budget Ord. 010-25 Adjustments Biennial Budget Beginning Fund Balance $ 1,703,655 $ - $ 1,703,655 Revenue $ - $ - $ - Expense $ - $ - $ - Ending Fund Balance $ 1,703,655 $ - $ 1,703,655 74 2025-2026 Biennial 2025-2026 2025-2026 Amended Fund: 433 -Sewer Capital Budget Ord. 010-25 Adjustments Biennial Budget Beginning Fund Balance $ 10,194,669 $ - $ 10,194,669 Revenue $ 17,639,177 $ 84,469 $ 17,723,646 Expense $ 17,773,405 $ 84,469 $ 17,857,874 Ending Fund Balance $ 10,060,441 $ - $ 10,060,441 2025-2026 Biennial 2025-2026 2025-2026 Amended Fund: 434 -Sewer Debt Service Budget Ord. 010-25 Adjustments Biennial Budget Beginning Fund Balance $ 1,526,829 $ - $ 1,526,829 Revenue $ 2,163,500 $ - $ 2,163,500 Expense $ 2,163,100 $ - $ 2,163,100 Ending Fund Balance $ 1,527,229 $ - $ 1,527,229 2025-2026 Biennial 2025-2026 2025-2026 Amended Fund: 500 -Equipment Rental and Revolving Budget Ord. 010-25 Adjustments Biennial Budget Beginning Fund Balance $ 5,488,629 $ - $ 5,488,629 Revenue $ 3,928,900 $ 732,105 $ 4,661,005 Expense $ 4,346,100 $ 751,905 $ 5,098,005 Ending Fund Balance $ 5,071,429 $ (19,800) $ 5,051,629 2025-2026 Biennial 2025-2026 2025-2026 Amended Fund: 632 -Wastewater Treatment Facil Fee Budget Ord. 010-25 Adjustments Biennial Budget Beginning Fund Balance $ 7,928,819 $ - $ 7,928,819 Revenue $ 2,000,000 $ - $ 2,000,000 Expense $ 400,000 $ - $ 400,000 Ending Fund Balance $ 9,528,819 $ - $ 9,528,819 75 Unassigned New Hire Set Aside Working Cap Policy Target $ 6,160,875 $ (2,246,331) $ $ - $ 1,872,500 $ $ 3,750,000 $ - $ 3,914,541 Unassigned 1,872,500 New Hire Set Aside 3,750,000 90 Days -Working Cap Policy Target 2025-2026 Biennial Budget 2025-2026 2025-2026 Amended Biennial Fund: 002 -City Street Fund Ord.010-25 Adjustments Budget Beginning Fund Balance $ 4,448,363 $ - $ 4,448,363 Revenue $ 7,690,400 $ 344,434 $ 8,034,834 Expense $ 10,062,439 $ 390,374 $ 10,452,813 Ending Fund Balance $ 2,076,324 $ (45,940) $ 2,030,384 Unassigned New Hire Set Aside Working Cap Policy Target Working Capital New Hire Set Aside $ 1,076,324 $ (664,640) $ $ - $ 618,700 $ $ 1,000,000 $ - $ $ 837,779 $ 23,005 $ $ - $ 288,600 $ 411,684 Unassigned 618,700 New Hire Set Aside 1,000,000 90 Days -Working Cap Policy Target 860,784 70 Days -Working Cap Policy Target 288,600 New Hire Set Aside 2025-2026 Biennial Budget 2025-2026 2025-2026 Amended Biennial Fund: 421 -Storm Drainage Utility Ord.010-25 Adjustments Budget Beginning Fund Balance $ 2,328,243 $ - $ 2,328,243 Revenue $ 5,644,700 $ 1,350,000 $ 6,994,700 Expense $ 5,885,900 $ 882,477 $ 6,768,377 Ending Fund Balance $ 2,087,043 $ 467,523 $ 2,554,566 Unassigned New Hire Set Aside Working Capital $ 1,287,043 $ (456,877) $ $ - $ 924,400 $ $ 800,000 $ S 830,166 Unassigned 924,400 New Hire Set Aside 800,000 90 Days -Working Cap Policy Target 2025-2026 Biennial Budget 2025-2026 2025-2026 Amended Biennial Fund: 431 -Sewer Operating Ord.010-25 Adjustments Budget Beginning Fund Balance $ 8,754,383 $ $ 8,754,383 Revenue $ 12,444,500 $ $ 12,444,500 Expense $ 16,907,512 $ 434,632 $ 17,342,144 Ending Fund Balance $ 4,291,371 $ (434,632) $ 3,856,738 Unassigned New Hire Set Aside Working Capital $ 2,636,371 $ (984,632) $ $ 1,655,000 $ 1,651,738 Unassigned - New Hire Set Aside 1,655,000 90 Days -Working Cap Policy Target 76 New Requests Administration Prosecution Services 2025 Amount 182,000 24,000 Mayor Approved 182,000 Y Fund(s) General Finance Committee Y Prosecution Services 2026 23,000 Y General Y Additional LTAC Funding 35,000 Y Lodging Tax Y Downtown Revitalization Program 100,000 Y General Y Public Works Waterfront Beautification Improvements 100,000 100,000 100,000 y General Y License Plate Reader (LPR) System 000 50,000_7 50,000 General Capital Projects Transportation 375,000 375,000 Frederick Street Design Improvements 375,000 Y Impact Fees Y I Total 000 707,000 77 Cleanup To Existing Budget2025 - 2026 Biennial Payroll Cleanup Cleanup Payroll Budget to Match Actual Expenses Contracts Added and/or Increased Axon -Interview Room Contract Library Roof Repair 730 Prospect St -Closeout Review Approved • 000 129,000 7 129,0001 Y 69,603 69,603 25,000 Y I Allocated Criminal Justice I Y Y 40,000 Y General Y 2,585 Y General Y PW EV Charging Closeout 2,018 Y General Y AWC Insurance Increase - Y Allocated Y Increase cost for ER&R# 1015 increase cost to paint vehicle 8,500 Y ER&R Y Increase cost for ER&R# 1044 increase cost to paint vehicle 8,500 Y ER&R Y Increase cost for replacement of ER&R# 1012 2,500 Y ER&R Y Increase cost for replacement of ER&R# 1046 2,500 Y ER&R Y Increase cost for replacement of ER&R# 1061 8,000 Y ER&R Y Increase cost for replacement of ER&R# 1051 8,500 Y ER&R Y Fuel Cost Increase (2025) 28,000 Y ER&R Y EV Power Increase (2025) 3,500 Y ER&R Y Insurance Cost Increase (2025) 16,900 Y ER&R Y ER&R Services Increase (2025) 13,600 Y ER&R Y Tail Gate Failures (2025) 5,400 Y ER&R Y Supplies (2025) 4,000 Y ER&R Y ER&R# 1066 Sweeper -Repairs (2025) 10,000 Y ER&R Y ER&R# 1081 SWS Vac Truck -Repairs (2025) 2,500 Y ER&R Y ER&R# 1100 - Vac Con Truck -Repairs (2025) 2,500 Y ER&R Y ER&R# 1000 - Safe Boat Repair (2026) 25,400 Y ER&R Y Insurance Cost Increase (2026) 27,000 Y ER&R Y Supplies (2026) 20,400 Y ER&R Y Services (2026) 33,000 Y ER&R Y Fuel Cost Increase (2026) 54,200 Y ER&R Y EV Power Increase (2026) 3,700 Y ER&R Y ER&R# 1066 Sweeper (2026) 15,000 Y ER&R Y ER&R# 1081 SWS Vac Truck (2026) 2,500 Y ER&R Y ER&R# 1100 - Vac Con Truck (2026) 2,500 Y ER&R Y Debt Payment Cleanup Reduce: Well 11 Construction Payment :00 (209,400)1 :00 Y Water Debt Service Y Reduce: Well 7 Pre -Construction Payment (200,000) Y Water Debt Service Y Increase: McCormick Resevoir Agreement 86,000 Y Water Debt Service Y Increase: Melcher Pump Station Rebuild 5,000 Y Water Debt Service Y Add: Old Clifton Intertie (prefunding) 100,000 Y Water Debt Service Y Add: Old Clifton Intertie Payment 208,600 Y Water Debt Service Y Total 497,403 497,403 78 2025 - 2026 Biennial New Requests A. Animal Control Contract, Increase 2026 Review Amount Mayor Approved 9,2501 Y Fund(s) General Finance Committee Y Code Publishing, Large DCD Code Change 2025 7,975 Y General Y Mangement Strategic Planning Consultant 5,000 Y General Y Kitsap Community Resources-1406 Affordable Housing 50,000 Y General Y City Website-New Service Finance Finance Budget Software Police Evidence room upgrades 50,000 000 25,000 Y 25,000 Y General General General Y Y 36,300 6,000 36,300 Y Y Traffic supplies (Cones, wands) 2,500 Y General Y Officer Wellness -1st Watch 7,500 Y General Y Radio holsters (for new portable radios 30x$64/ea) 1,900 Y General Y Kennedy School Executive Education 7,000 Y General Y Additional ProForce Expenses 11,400 Y General Y DevelopmentCommunity On -Call Building Code Consultant (Increase current amount by $150,000) 000 150,000 14,000 N General N Parks, Recreation, Open Space Plan (Need to complete by end of 2027). 75,000 N General N SmartGOV Annual Training 9,000 Y General Y SmartGOV Financial Connector 5,000 Y General Y Public Works Facility Supplies, (New building and deferred maintenance) 1,016,801 16,000 830,801 Y General Y Facility Services (New building, currently, the budget is not keeping pace. 90,000 Y General Y HVAC Repairs & Maintenance 11,701 Y General Y Janitorial Services 23,100 Y General Y Snow and Ice Material Pricing Increase 10,000 Y Street Y Additional Parks to manage -additional costs 6,000 Y General Y Additional Facilites to Manage -additional costs 11,000 Y General Y Foster Change Order to finish the pilot 270,000 Y Water Y Street Striping/buttons Contract Increase 30,000 Y Street Y Kitsap County Signal Maint. Contract Increase 15,000 Y Street Y Office Furniture 15,000 Y General Y Public Works Shop Improvements( Llod Pkwy)-Allocation 75,000 Y Capital Construction Y Park Playground Equipment 50,000 Y General Y Utilty Operations Center Improvements (Lloyd Pkwy)-Allocation 150,000 N Capital Construction N Givens Park Master Plan (2026 -2027 RCO Cycle) 150,000 Y General Y Trailer for pressure washer 10,000 Y Allocated Y Locate Module Opengov 21,000 N Allocated N Splash Pad control ler-BECsys 3 9,000 Y General Y City Hall Card Lock Additions 15,000 N General N Cues Push Camera 12,000 Y Allocated Y Deicer Tank Replacement 27,000 Y Street Y 79 New Requests Amo �k mayor Fund(s) Finance Approved Committee Lift gate for Ford Lightening 8,705 Y General Y Electric Zero Turn Mower and Trailer 38,000 N General N Overhead Oil System 19,800 Y General Y Modification for ER&R# 1036 (8,000) Y Street Y Remove HookLift Truck Addition- Modified to Bucket Truck Only (248,000)1 Y Street Y Remove HookLift Truck Addition- Modified to Bucket Truck Only 256,000 Y Street Y Capital Projects :i0 5,518,800 Now PA#18-111 to 302-SKCEC (PIF)-0066-20 (AMD16)-Exp Design Reconfigurat 31,760 Y Impact Fees Y PA#18-111 to 302-SKCEC (PIF)-0066-20 (AMD17)-Exp Design Donor Recog 37,045 Y Impact Fees Y PA#18-111 to 302-SKCEC (PIF)-0066-20 (AMD18)-Exp Interpretive Design 11 44,320 Y Impact Fees Y PA#18-111 to 302-SKCEC (PIF)-0066-20 (AMD19)-Exp Furniture Design 16,000 Y Impact Fees Y Transportation TIP 1.16 SR166/Bay Street Re -Construction 3,630,000 Impact Fees Y Water TIP 1.16 SR166/Bay Street Re -Construction 384,464 Y General I Y St, TIP 1.16 SR166/Bay Street Re -Construction 515,742 Y Storm Y Annapolis Creek Culvert Removal 525,000 Y Storm Y Ruby Creek Culvert Removal 250,000 Y Storm Y Sewer TIP 1.16 SR166/Bay Street Re -Construction Policy Targets- Working Capital & Stabilization Working Capital Policy moving toward 25%-General 84,469 Y Sewer Y General Working Capital Policy moving toward 25%-Street Street Working Capital Policy moving toward 25%-Water Water Working Capital Policy moving toward 25%-Storm Storm Working Capital Policy moving toward 25%-Sewer Sewer Stabilization Policy Contributions -Water Water Stabilization Policy Contributions -Storm Storm Stabilization Policy Contributions -Sewer - Sewer 80 i Personnel Requests Amount Personnel Requests 000 Add: Police Officer 181,600 Mayor Approved 1,628,350 Y Fund(s) General Finance Committee Y Add: Police Officer 182,600 N General N Add: Police Officer 182,600 N General N Add: Communications Specialist 151,700 Y Allocated Y Add: Plans Examiner/Building Inspector III 182,300 Y General Y Change: Permit Center Assistant increase to 1 FTE 70,500 Y General Y Add: Finance Accounting Assistant III 156,700 Y Allocated Y Change: Project Coordinator/Inspector to Senior Project Coordinator/Inspel 18,500 Y Allocated Y Add: Project Coordinator/Inspector 163,900 Y Allocated Y Add: Public Works Office Assistant II 128,900 Y Allocated Y Add: Maintenance Technician II -Parks 143,600 Y General Y Add: Maintenance Technician II - Street 143,600 Y Street Y Add: Maintenance Technician II - Sewer 143,600 Y Sewer Y Add: Maintenance Technician II - Storm 143,450 Y Storm Y Add: Maintenance Technician II - Storm 143,450 N Storm N Addition to the Fleet: Police Vehicle 100,000 Y Criminal Justice ER&R Addition to the Fleet: Police Vehicle 100,000 N General ER&R Addition to the Fleet: Police Vehicle 100,000 N General ER&R Addition to the Fleet: Sewer Truck 70,000 Y Sewer ER&R Addition to the Fleet: Storm Truck 70,000 Y Storm ER&R Total 000 1,868,350 81 i Transfers Capital Transfer in for730 Prospect & EV Charging Amount 5,123,403 4,603 Mayor ]Approved 40 Y Fund Out General Fundin Capital Construction TIP 1.16 SR166/Bay Street Re -Construction (TIF) 3,630,000 Y Impact Fee Street Construction TIP 1.16 SR166/Bay Street Re -Construction (Water) 384,464 Y General Water Capital TIP 1.16 SR166/Bay Street Re -Construction (Storm) 515,742 Y Storm Storm Capital TIP 1.16 SR166/Bay Street Re -Construction (Sewer) 84,469 Y Sewer Sewer Capital PA#18-111 to 302-SKCEC (PIF)-0066-20 (AMD16)-Exp Design Reconfigurati 31,760 Y Impact Fees Capital Construction PA#18-111 to 302-SKCEC (PIF)-0066-20 (AMD17)-Exp Design Donor Recog 37,045 Y Impact Fees Capital Construction PA#18-111 to 302-SKCEC (PIF)-0066-20 (AMD18)-Exp Interpretive Design f 44,320 Y Impact Fees Capital Construction PA#18-111 to 302-SKCEC (PIF)-0066-20 (AMD19)-Exp Furniture Design 16,000 Y Impact Fees Capital Construction Frederick Street Design Improvements 375,000 Y Impact Fees Street Construction e McCormick Reservoir Agreement :11 86,000 :11 Y Water Capital Water Debt Service Well No. 11 Construction (157,050) Y Water Water Debt Service Well No. 11 Construction (52,350) Y Water Capital Water Debt Service Well No. 7 Pre -Construction (100,000) Y Water Water Debt Service Well No. 7 Pre -Construction (100,000) Y Water Capital Water Debt Service Old Clifton Intertie Pre Fund 100,000 Y Water Capital Water Debt Service Old Clifton Intertie Payment 206,450 Y Water Capital Water Debt Service Old Clifton Intertie Payment 2,150 Y Water Water Debt Service Melcher Pump Station 3,750 Y Water Water Debt Service Melcher Pump Station 1,250 Y Water Capital Water Debt Service Policy Stabilization Policy Contributions -Water Water Water Stabilization Stabilization Policy Contributions -Storm Storm Storm Stabilization Stabilization Policy Contributions -Sewer Sewer Sewer Stabilization Total.0 .0 82 Revenue Adjustments Grants and Loans Annapolis Creek Culvert Removal-RCO Grant Amount Mayor Fund(s) Finance Approved Committee 483,602 483,602 425,000 Y Storm Capital Y Ruby Creek Culvert Removal-RCO Grant 58,602 Y Storm Capital Y Adjustments Reductions UtilityTax-Television Cable-2025 (30,000) Y General Y Adult Probation Service Charg (10,000) Y General Y Ciminal Justice High Crime (50,000) Y Criminal Justice Y UtilityTax-Television Cable-2026 (30,000) Y General Y Ciminal Justice High Crime-2026 (50,000) Y Criminal Justice Y Additions Local Retail Sales & Use Tax 300,000 Y General Y Utility Tax - Electric 170,000 Y General Y Utility Tax - Gas 60,000 Y General Y Utility Tax - Garbage 56,000 Y General Y Utility Tax -Storm Drainage 24,500 Y General Y Punch BoardsAnd Pull Tabs 50,000 Y General Y Amusement Games 5,000 Y General Y Leasehold Excise Taxes 10,000 Y General Y Lic & Per - Bldgs, Struct,Equ 250,000 Y General Y Federal Indirect Homeland Sec 19,000 Y General Y St direct/indirect grant -Criminal Jstc Trng Comm 40,000 Y General Y St Direct/Indirect-JudicialOAC 14,000 Y General Y State Grant from Department Natural Resources 6,000 Y General Y St Direct/Indirect-Traf Sfty C 7,000 Y General Y State Grant from COM 25,000 Y General Y Marijuana Excise Tax Distribut 10,000 Y General Y Liquor Excise Tax 20,000 Y General Y Liquor Control Board Profits 15,000 Y General Y Local Grants,Entitlmnts, Other 24,600 Y General Y Protective Inspection Fees 5,000 Y General Y Plan Checking Fees 160,000 Y General Y Other Plann Fees Hearing Exam 10,000 Y General Y Investment Interest 520,000 Y General Y Interest On Contracts,Notes,T 14,000 Y General Y Contributions & Donations from Nongovernmental 10,000 Y General Y Other Judgments & Settlements 28,000 Y General Y Other Miscellaneous Revenue 15,000 Y General Y 001-General Property Taxes-2026 99,200 Y General Y Utility Tax - Gas-2026 20,000 Y General Y Utility Tax - Garbage-2026 46,000 Y General Y 83 •2026 Revenue Adjustments Public Transportation Tax Biennial Review Amount 90,000 Mayor Approved Y Fund(s) Street Finance Committee Y Investment Interest 111,034 Y Street Y 002-General Property Taxes-2026 53,400 Y Street Y Public Transportation Tax-2026 90,000 Y Street Y Criminal Justice Funding 40,000 Y Criminal Justice Y Interest 10,000 Y Criminal Justice Y Water Sales 150,000 Y Water Y Water Irrigation 25,000 Y Water Y Water Fee's 120,000 Y Water Y Rents&Leases 9,500 Y Water Y Construction Water Sales 34,000 Y Water Y Inspection 22,600 Y Water Y Penalties 25,000 Y Water Y Stormwater Permit 18,000 Y Storm Drainage Y DOE Storm Grant 107,500 Y Storm Drainage Y DOE Stormwater Capacity 22,400 Y Storm Drainage Y Storm Drainage -Residential 207,000 Y Storm Drainage Y Storm Drainage -Commercial 300,000 Y Storm Drainage Y Storm Drainage-Residential-2026 343,600 Y Storm Drainage Y Storm Drainage-Commercial-2026 351,500 Y Storm Drainage Y Operation & Maintenance -Police 151,010 732,105 Y Fund Out General Fund In ER&R Operation & Maintenance-DCD 9,008 Y General ER&R Operation & Maintenance -Parks 24,549 Y General ER&R Operation & Maintenance-Facilities/Engineering 26,467 Y General ER&R Operation & Maintenance -Streets 46,674 Y Street ER&R Operation & Maintenance -Water 36,045 Y Water ER&R Operation & Maintenance -Storm 43,984 Y Storm ER&R Operation & Maintenance -Sewer 37,363 Y Sewer ER&R Replacement Payment -Engineering 5,000 Y General ER&R Replacement Payment -Police 17,000 Y General ER&R Replacement Payment -Street 8,000 Y Street ER&R Replacement Payment -Sewer 8,500 Y Sewer ER&R Addition to the Fleet: Police Vehicle 100,000 Y Criminal Justice ER&R Addition to the Fleet: Police Vehicle 100,000 N General ER&R Addition to the Fleet: Police Vehicle 100,000 N General ER&R Addition to the Fleet: Sewer Truck 70,000 Y Sewer ER&R Addition to the Fleet: Storm Truck 70,000 Y Storm ER&R Lift gate for Ford Lightning 8,705 Y General ER&R Electric Zero Turn Mower and Trailer 38,000 N General ER&R Overhead Oil System 19,800 Y Allocated ER&R Modification for ER&R# 1036 (8,000) Y Street ER&R Remove HookLift Truck Addition- Modified to Bucket Truck (248,000) Y Street ER&R Remove HookLift Truck Addition- Modified to Bucket Truck 256,000 Y Street ER&R License Plate Reader (LPR) System 50,000 Y General ER&R Total 5,447,541 0. ,541 84 Capital Pro 2025- id-Biennial Budget Adjustm As of 10/28/ Finance Departmen 00 Ul Capital Construction Funds 2025-2026 GRAND TOTAL: $52,816,584 $58,7859384 Fund 302: Capital Construction: Fund 304: Street Capital Construction: Fund 413: Water Capital Construction: Fund 423: Storm Drainage Capital: Fund 433: Sewer Capital Construction: $518071039 $20, 811, 589 $7, 824, 800 $1, 460, 000 $16,913,155 $6, 011,165 $24, 816, 589 $8, 209, 264 $2, 650, 742 $16, 997, 624 CO Capital Construction PA#15 City Hall Remodel (Ord. 010-25) PA#18 South Kitsap Comm Events Cntr Et Plaza (Ord 005-25) PA#53 Givens Park (Ord 005-25) PA#74 Lloyd Pkwy (Ord.010-25) 302-Total Expenses $8621205 $1, 860, 959 $613,000 $2, 675, 000 $610111165 00 4 Fund 304 Street Capital Construction PA#11 TIP 1.1 Bay Street Pathway ROW $1, 325, 000 PA#22 TIP 1.7 Bethel Mitchel Design Et Construction Completion PA#22 TIP 1.7 Bethel Lincoln Design Et Construction Completion PA#27 TIP 1.2 Bay Street Pathway Design Et Construction PA#38 TIP 1.8 Et 1.9 Salmon Et Blueberry Design Et ROW (Ord.005-25) PA#41 TIP 1.15 Pottery Design 8t Construction Completion (Ord.005-25) PA#42 TIP 1.16 SR166 -Bay Street Re -Construction PA#45 TIP 1.14 Sidney Rd S Widening (Non -Motorized Improvements) PA#47 TIP 1.18 Tremont Phase 2 Et 3 PA#65 TIF 1.4 Anderson Hill RAB PA#66 TIP 1.19 SB 160 2A PA#TBD TIP 1.22 Fredrick 304-Total Expenses $1,365,000 $2, 000, 000 $1,775,000 $41250,588 $681,000 $9,312,000 $210311000 $757, 000 $3001000 $645, 000 $375,000 $ 24, 816, 589 0 Fund 413 Water Capital Construction PA#16 WCIP#3 Well #11-Design Et Construction Completion PA#36 WCIP#10 Melcher Booster PA #41 TIP 1.15 Pottery Non -Motorized Improvements Completion PA#42 WCIP#19a Water Main- SR16613ay Water Re -Construction PA#60 Wel1#7 Design PA#67 WCIP#22 Foster Mitigation $ 3 , 700, 000 $975,000 $125,000 $854, 264 $5151000 $11000,000 PA#70 WCIP #08 Old Clifton Water Main 390-580 Intertie $110401000 413-Total Expenses $8, 209, 2E,& 0 Fund 423 Storm Capital PA#41 TIP 1.15 Pottery Non -Motorized Improvements $80,000 PA#42 TIP 1.16 SR166/ Bay Street Re -Construction PA#68 South Sidney Regional Stormwater Facility PA#69 Annapolis Creek Culvert Removal j PA#72 Ruby Creek Culvert Replacement 23-Total Expenses $640,742 $780YOOO $525YOOO $7251000, $2) 650.9 742 0 Fund 433 Sewer Capital Construction PA#04 SCIP#1 Marina Project Completion $11,580,000 PA#37 C090-21 Sewer Lift Controls (Operations)(Ord 005-25) $1,358,456 PA#41 TIP 1.15 Pottery Non -Motorized $400,500 PA#42 SCIP#7 Sewer Main Replacement -SR 166 Bay Street $768,669 PA#43 SCIP#SB South Sidney(Ruby Lift Station) Design Work PA#45 2nd Sidney Force Main PA#58 Bay Street Sewer Lift Station Design 433-Total Expenses $1,040,000 $1,050,000 $1619977624 Questions 0 N DocuSign Envelope ID: 17D3D4AA-A456-4585-B6E3-91658F605655 ORDINANCE NO.009-23 AN ORDINANCE OF THE CITY OF PORT ORCHARD, WASHINGTON, AMENDING CHAPTER 2.60 POMC, PERTAINING TO COMPENSATION FOR CITY COUNCIL MEMBERS PROVIDING FOR SEVERABILITY AND PUBLICATION; AND SETTING AN EFFECTIVE DATE. WHEREAS, at the March 21, 2023, City Council work study session, the City Council reviewed and considered the compensation of council members; and WHEREAS, the compensation of Port Orchard City Council members has not changed since 2014; and WHEREAS, the City Council finds that the compensation of City Council positions should be kept commensurate with the demands of the position in order to promote qualified candidates to run for office; and WHEREAS, the City Council finds that it is in the best interests of the City to convert the pay schedule for Councilmembers to the same bi-weekly pay schedule as all other City employees to reduce staff time required due to current, differing pay schedules; and WHEREAS, the Washington State Constitution, Article XI, Sec. 8, provides that any change to the Council salary can only take effect at the start of the next term of office for that Council position; and WHEREAS, the City Council finds adoption of these amendments to be in the best interest of the City and residents; now, therefore, THE CITY COUNCIL OF THE CITY OF PORT ORCHARD, WASHINGTON, DO ORDAIN AS FOLLOWS: SECTION 1. Amendment. The title of Section 2.60.010 of the Port Orchard Municipal Code is hereby amended to be "Compensation." SECTION 2. Amendment. Port Orchard Municipal Code Section 2.60.010 is hereby amended to read as follows: 2.60.010 Compensation. City council members shall receive $500 for each two week pay period, provided there shall be 26 pay periods per year. City council members will be paid in accordance with the regular payroll schedule for other City employees. SECTION 3. Port Orchard Municipal Code section 2.60.020 is hereby amended to read as follows: 93 DocuSign Envelope ID: 17D3D4AA-A456-4585-B6E3-91658F605655 Ordinance No. 009-23 Page 2 of 2 2.60.020 Cost of living adjustment. During each year of a City council member's term, the Seattle -Tacoma -Bellevue CPI-U June to June index will be tracked. The cumulative total of the CPI effect on the council member's salary will be applied at the beginning of next term of office for the position, provided that each annual CPI included in the cumulative total shall not be less than 0% or more than 4%. SECTION 4. The salary modifications set out herein shall commence on January 1, 2024 as to council positions 1, 4, S and At Large, and on January 1, 2026 as to council positions 2, 3 and 6. SECTION 5. Severability. If any section, sentence, clause or phrase of this Ordinance should be held to be unconstitutional or unlawful by a court of competent jurisdiction, such invalidity or unconstitutionality shall not affect the validity or constitutionality of any other section, sentence, clause or phrase of this Ordinance. SECTION 6. Publication. This Ordinance shall be published by an approved summary consisting of the title. SECTION 7. Effective Date. This Ordinance shall take effect and be in full force and effect on January 1, 2024, as provided by law, provided further that the salary adjustments set out herein shall be effective as stated herein. PASSED by the City Council of the City of Port Orchard, APPROVED by the Mayor and attested by the Clerk in authentication of such passage this 91h day of May 2023. DocuSigned by: 1PQF;AQ9P';F1Rd7n Robert Putaansuu, Mayor Signed by: Brandy Wallace, MMC, City Clerk APPROVED AS TO FORM: SPONSOR: DocuSignnedd by:: f1I1 • 1,, t. Charlotte A. Archer, City Attorney J in Clauson, Councilmember PUBLISHED: May 12, 2023 EFFECTIVE DATE: January 1, 2024 94 0�4 City of Port Orchard ORCHARD 216 Prospect Street, Port Orchard, WA 98366 7� (360) 876-4407 • FAX (360) 895-9029 Agenda Staff Report Business Items: Adoption of a Resolution Authorizing the Mayor to Execute a Contract with Skillings, Inc. for the Ruby Creek Culvert Replacement Project (Ryan) Meeting Date: October 28, 2025 Prepared By: Sayre Thompson, PW Procurement Specialist Presenter: Denis Ryan, CPWP-M, CPRP, Public Works Director Summary and Background: The existing culvert conveying Ruby Creek beneath Sidney Road has been identified as a fish passage barrier. With upstream improvements completed by the Stetson Heights development and downstream improvements by WSDOT at SR 16, the City is now moving forward with design services to replace the culvert with a fish -passable structure. The project will address habitat connectivity, stream function, and regulatory compliance, and will incorporate roadway, utility, and environmental considerations. Pursuant to RCW 39.80 and the City's procurement policies, the City issued a Request for Qualifications (RFQ) on June 4, 2025, for professional engineering services under the category of fish passage and culvert replacement design. By the July 1, 2025 deadline, multiple Statements of Qualifications were received. After evaluation and interviews, Skillings, Inc. was selected as the most qualified consultant. Public Works staff then negotiated the scope, fee, and terms of the contract with Skillings, Inc. The resulting Professional Services Agreement includes Exhibits A (Scope of Work) and B (Fee Estimate), in an amount not to exceed $665,682. The contract term runs from October 28, 2025 through April 28, 2027, with two optional one-year extensions at the City's discretion. This project is funded through a Recreation and Conservation Office Grant (RCO Project #21-1498), as authorized by Resolution No. 081-22, adopted by the City Council on August 9, 2022. Relationship to Comprenhensive Plan: 5 - Natural Systems Recommendation: Staff recommends adoption of a Resolution authorizing the Mayor to execute a Professional Services Agreement with Skillings, Inc. for the Ruby Creek Culvert Replacement Project in the amount of $665,682. Motion for Consideration: I move to adopt a Resolution authorizing the Mayor to execute a Professional Services Agreement with Skillings, Inc. for the Ruby Creek Culvert Replacement Project in the amount of $665,682. 95 Has item been presented to Committee/Work Study? If so, which one: N/A Fiscal Impact: The total contract amount of $665,682 is funded through a combination of grant funds and local match. The City has secured $441,102 in grant funding from the Recreation and Conservation Office (RCO Project #21-1498) to support the design phase of the Ruby Creek culvert replacement project. The remaining $224,580 will be covered using existing funds from Storm Capital Facility Charges fund 423. Alternatives: Do not approve and provide further guidance. Attachments: CONTRACT PACKET - Ruby Creek Culvert Replacement.pdf RESOLUTION_-_Ruby_Creek(11130315.1).docx M. Port Orchard Contract #: Authorized Amount: $665, 682.00 Date Start: 10/28/2025 Date End: 4/28/2027 CONSULTANT SERVICES AGREEMENT Ruby Creek Culvert Replacement THIS AGREEMENT is entered into by and between the City of Port Orchard, Washington, a municipal corporation organized under the laws of the State of Washington ("City') and Skillings, Inc. ("Consultant") organized under the laws of the State of Washington located and doing business at 5016 Lacey Blvd, SE Lacey, WA 98503-5729 (hereinafter the "Consultant"). RECITALS: WHEREAS, the City desires to have certain services performed for its residents; and WHEREAS, the City has selected the Consultant to perform such services pursuant to certain terms and conditions; and WHEREAS, the City complied with the requirements for hiring Consultant contained in Chapter 39.80 RCW; NOW, THEREFORE, in consideration of the mutual benefits and conditions set forth below, the parties agree as follows: AGREEMENT: 1. Scope of Services to be Performed by Consultant. The Consultant shall perform those services described on Exhibit "A," which is attached hereto and incorporated herein bythis reference as if set forth in full. In performing such services, the Consultant shall at all times comply with all federal, state, and local statutes, rules and ordinances applicable to the performance of such services and the handling of any funds used in connection therewith. The Consultant shall perform the services diligently and completely and in accordance with professional standards of conduct and performance. The Consultant shall request and obtain prior written approval from the City if the scope or schedule is to be modified in any way. If the services provided hereunder are funded in whole or in part under a Grant Funding Agreement, then Consultant will comply with the terms of such Grant Funding Agreement to ensure that the City is able to obtain the maximum funding under such Grant Funding Agreement. If this applies, the City will provide the Consultant with a copy of the Grant Funding Agreement. City of Port Orchard and Skillings, Inc. Public Works Project: Ruby Creek Culvert Replacement Updated 4120221BDR Page 1 of 15 97 If the services provided hereunder are funded in whole or in part under a Grant Funding Agreement, then Consultant will comply with the terms of such Grant Funding Agreement to ensure that the City is able to obtain the maximum funding under such Grant Funding Agreement. If this applies, the City will provide the Consultant with a copy of the Grant Funding Agreement. 2. Compensation. The City shall pay the Consultant for services rendered according to the rates and methods set forth below. ❑ LUMP SUM. Compensation for these services set forth in Exhibit A shall be a Lump Sum of $ x TIME AND MATERIALS NOT TO EXCEED. Compensation for these services shall not exceed $665,682.00 without written authorization and will be based on the list of billing rates and reimbursable expenses attached hereto as Exhibit "B." ❑ TIME AND MATERIALS. Compensation for these services shall be on a time and materials basis according to the list of billing rates and reimbursable expenses attached hereto as Exhibit „B .11 ❑ OTHER 3. Payment. A. The Consultant shall maintain time and expense records and provide them to the City monthly after services have been performed, along with monthly invoices in a format acceptable to the City for work performed to the date of the invoice. B. All invoices shall be paid by City warrant within thirty (30) days of receipt of a proper invoice. If the City objects to all or any portion of any invoice, it shall so notify the Consultant of the same within fifteen (15) days from the date of receipt and shall pay that portion of the invoice not in dispute, and the Parties shall immediately make every effort to settle the disputed portion. C. The Consultant shall keep cost records and accounts pertaining to this Agreement available for inspection by City representatives for three (3) years after final payment unless a longer period is required by a third -party agreement. Copies shall be made available on request. D. On the effective date of this Agreement (or shortly thereafter), the Consultant shall comply with all federal and state laws applicable to independent contractors, including, but not limited to, the maintenance of a separate set of books and records that reflect all items of income and expenses of the Consultant's business, pursuant to Revised Code of Washington (RCW) 51.08.195, as required by law, to show that the services performed by the Consultant under this Agreement shall not give rise to an employer -employee relationship between the parties, which is subject to Title 51 RCW, Industrial Insurance. City of Port Orchard and Skillings, Inc. Public Works Project: Ruby Creek Culvert Replacement Updated 4120221BDR Page 2 of 15 98 E. If the services rendered do not meet the requirements of the Agreement, the Consultant will correct or modify the work to comply with the Agreement. The City may withhold payment for such work until the work meets the requirements of the Agreement. The City shall pay the Consultant for services rendered within ten (10) days after City Council voucher approval. However, if the City objects to all or any portion of an invoice, it shall notify Consultant and reserves the option to only pay that portion of the invoice not in dispute. In that event, the Parties will immediately make every effort to settle the disputed portion. F. The City reserves the right to direct the Consultant's compensated services before reaching the maximum amount. 4. Duration of Agreement. A. This Agreement shall be in full force and effect for a period commencing on 10/28/2025 and ending 4/28/2027 unless sooner terminated under the provisions of this Agreement. The City reserves the right to offer two (2) one-year extensions prior to expiration of the Agreement to retain the Consultant's services. B. Time is of the essence of this Agreement in each and all of its provisions in which performance is required. If delays beyond the Consultant's reasonable control occur, the Parties will negotiate in good faith to determine whether an extension is appropriate. C. The Consultant shall obtain a City of Port Orchard business license prior to commencing work pursuant to a written Notice to Proceed. D. The Consultant is authorized to proceed with services upon receipt of a written Notice to Proceed. 5. Standard of Care. The Consultant represents and warrants that it has the requisite training, skill, and experience necessary to provide the services under this Agreement and is appropriately accredited and licensed by all applicable agencies and governmental entities. Services provided by the Consultant under this Agreement will be performed in a manner consistent with that degree of care and skill ordinarily exercised by members of the same profession currently practicing in similar circumstances. 6. Ownershio and Use of Documents. A. Ownership. Any records, files, documents, drawings, specifications, data, or information, regardless of form or format, and all other materials produced by the Consultant in connection with the services provided to the City, shall be the property of the City whether the project for which they were created is executed or not. City of Port Orchard and Skillings, Inc. Public Works Project: Ruby Creek Culvert Replacement Updated 4120221BDR Page 3 of 15 99 B. Records preservation. Consultant understands that this Agreement is with a government agency and thus all records created or used in the course of Consultant's work for the City are considered "public records" and are subject to disclosure by the City under the Public Records Act, Chapter 42.56 RCW ("the Act"). Consultant agrees to safeguard and preserve records in accordance with the Act. The City may be required, upon request, to disclose the Agreement, and the documents and records submitted to the City by Consultant, unless an exemption under the Public Records Act applies. If the City receives a public records request and asks Consultant to search its files for responsive records, Consultant agrees to make a prompt and thorough search through its files for responsive records and to promptly turn over any responsive records to the City's public records officer at no cost to the City. 7. Relationship of the Parties; Independent Consultant. The Parties intend that an independent contractor -client relationship will be created by this Agreement. As the Consultant is customarily engaged in an independently established trade which encompasses the specific service provided to the City hereunder, no agent, employee, representative or sub -consultant of the Consultant shall be or shall be deemed to be the employee, agent, representative or sub -consultant of the City. In the performance of the work, the Consultant is an independent contractor with the ability to control and direct the performance and details of the work, the City being interested only in the results obtained under this Agreement. None of the benefits provided by the City to its employees, including, but not limited to, compensation, insurance, and unemployment insurance are available from the City to the employees, agents, representatives, or sub - consultants of the Consultant. The City shall not be responsible for withholding or otherwise deducting federal income tax or social security or contributing to the State Industrial Insurance Program, or otherwise assuming the duties of an employer with respect to the Consultant, or any employee of the Consultant. The Consultant will be solely and entirely responsible for its acts and for the acts of its agents, employees, representatives, and sub -consultants during the performance of this Agreement. The City may, during the term of this Agreement, engage other independent contractors to perform the same or similar work that the Consultant performs hereunder. 8. Indemnification. Consultant shall defend, indemnify, and hold the City, its officers, officials, employees, agents, and volunteers harmless from any and all claims, injuries, damages, losses or suits including attorneys' fees, arising out of or resulting from the acts, errors or omissions of the Consultant in performance of this Agreement, except for injuries and damages caused by the sole negligence of the City. 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 Consultant and the City, its officers, officials, employees, and volunteers, the Consultant's liability, including the duty and cost to defend, hereunder shall be only to the extent of the Consultant's negligence. IT IS FURTHER SPECIFICALLY AND EXPRESSLY UNDERSTOOD THAT THE INDEMNIFICATION PROVIDED HEREIN CONSTITUTES THE CONSULTANT'S WAIVER OF IMMUNITY UNDER INDUSTRIAL INSURANCE, City of Port Orchard and Skillings, Inc. Public Works Project: Ruby Creek Culvert Replacement Updated 4120221BDR Page 4 of 15 100 TITLE 51 RCW, SOLELY FOR THE PURPOSES OF THIS INDEMNIFICATION. THIS WAIVER HAS BEEN MUTUALLY NEGOTIATED BY THE PARTIES. The provisions of this section shall survive the expiration or termination of this Agreement. 9. Insurance. The Consultant shall procure and maintain for the duration of the Agreement, insurance against claims for injuries to persons or damage to property which may arise from or in connection with the performance of the work hereunder by the Consultant, its agents, representatives, or employees. A. Minimum Scope of Insurance. Consultant shall obtain insurance of the types described below: limits: Automobile Liability insurance covering all owned, non -owned, hired and leased vehicles. Coverage shall be written on Insurance Services Office (ISO) form CA 00 01 or a substitute form providing equivalent liability coverage. If necessary, the policy shall be endorsed to provide contractual liability coverage. ii. Commercial General Liability insurance shall be written on ISO occurrence form CG 00 01 and shall cover liability arising from premises, operations, independent Consultants and personal injury and advertising injury. The City shall be named as an insured under the Consultant's Commercial General Liability insurance policy with respect to the work performed for the City. iii. Workers' Compensation coverage as required by the Industrial Insurance laws of the State of Washington. iv. Professional Liability insurance appropriate to the Consultant's profession. B. Minimum Amounts of Insurance. Consultant shall maintain the following insurance Automobile Liability insurance with a minimum combined single limit for bodily injury and property damage of $1,000,000 per accident. ii. Commercial General Liability insurance shall be written with limits no less than $1,000,000 each occurrence, $2,000,000 general aggregate. iii. Professional Liability insurance shall be written with limits no less than $1,000,000 per claim and $1,000,000 policy aggregate limit. C. Other Insurance Provision. The Consultant's Automobile Liability, Commercial General Liability, and Professional Liability insurance policies are to contain, or be endorsed to contain, that they shall be primary insurance as respect the City. Any Insurance, self-insurance, or insurance City of Port Orchard and Skillings, Inc. Public Works Project: Ruby Creek Culvert Replacement Updated 4120221BDR Page 5 of 15 101 pool coverage maintained by the City shall be excess of the Consultant's insurance and shall not contribute with it. D. Acceptability of Insurers. Insurance is to be placed with insurers with a current A.M. Best rating of not less than A-VII. E. Verification of Coverage. The Consultant shall furnish the City with original certificates and a copy of the amendatory endorsements, including but not necessarily limited to the additional insured endorsement, evidencing the insurance requirements of the Consultant before commencement of the work. F. Notice of Cancellation. The Consultant shall provide the City with written notice of any policy cancellation, within two business days of their receipt of such notice. G. Failure to Maintain Insurance. Failure on the part of the Consultant to maintain the insurance as required shall constitute a material breach of contract, upon which the City may, after giving five business days' notice to the Consultant to correct the breach, immediately terminate the contract or, at its discretion, procure or renew such insurance and pay any and all premiums in connection therewith, with any sums so expended to be repaid to the City on demand, or at the sole discretion of the City, offset against funds due the Consultant from the City. H. No Limitation. Consultant's maintenance of insurance as required by the Agreement shall not be construed to limit the liability of the Consultant to the coverage provided by such insurance, or otherwise limit the City's recourse to any remedy available at law or in equity. 10. Record Keeping and Reporting. A. The Consultant shall maintain accounts and records, including personnel, property, financial, and programmatic records, which sufficiently and properly reflect all direct and indirect costs of any nature expended and services performed pursuant to this Agreement. The Consultant shall also maintain such other records as may be deemed necessary by the City to ensure proper accounting of all funds contributed by the City to the performance of this Agreement. B. The foregoing records shall be maintained for a period of seven (7) years after termination of this Agreement unless permission to destroy them is granted by the Office of the Archivist in accordance with Chapter 40.14 RCW and by the City. 11. City's Right of Inspection and Audit. A. Even though the Consultant is an independent contractor with the authority to control and direct the performance and details of the work authorized under this Agreement, the work must meet the approval of the City and shall be subject to the City's general right of inspection to secure the satisfactory completion thereof. The Consultant agrees to comply with all federal, state, and municipal laws, rules, and regulations that are now effective or become applicable within the terms of this City of Port Orchard and Skillings, Inc. Public Works Project: Ruby Creek Culvert Replacement Updated 4120221BDR Page 6 of 15 102 Agreement to the Consultant's business, equipment, and personnel engaged in operations covered by this Agreement or accruing out of the performance of such operations. B. The records and documents with respect to all matters covered by this Agreement shall be subject at all times to inspection, review or audit by the City during the performance of this Agreement. All work products, data, studies, worksheets, models, reports, and other materials in support of the performance of the service, work products, or outcomes fulfilling the contractual obligations are the products of the City. 12. Work Performed at the Consultant's Risk. The Consultant shall take all precautions necessary and shall be responsible for the safety of its employees, agents, and sub -consultants in the performance of the work hereunder and shall utilize all protection necessary for that purpose. All work shall be done at the Consultant's own risk, and the Consultant shall be responsible for any loss of or damage to materials, tools, or other articles used or held by the Consultant for use in connection with the work. 13. Termination. A. Termination without cause. This Agreement may be terminated by the City at any time for public convenience, for the Consultant's insolvency or bankruptcy, or the Consultant's assignment for the benefit of creditors. B. Termination with cause. This Agreement may be terminated upon the default of the Consultant and the failure of the Consultant to cure such default within a reasonable time after receiving written notice of the default. C. Rights Upon Termination. i. With or Without Cause. Upon termination for any reason, all finished or unfinished documents, reports, or other material or work of the Consultant pursuant to this Agreement shall be submitted to the City, and the Consultant shall be entitled to just and equitable compensation for any satisfactory work completed prior to the date of termination, not to exceed the total compensation set forth herein. The Consultant shall not be entitled to any reallocation of cost, profit or overhead. The Consultant shall not in any event be entitled to anticipated profit on work not performed because of such termination. The Consultant shall use its best efforts to minimize the compensation payable under this Agreement in the event of such termination. Upon termination, the City may take over the work and prosecute the same to completion, by contract or otherwise. ii. Default. If the Agreement is terminated for default, the Consultant shall not be entitled to receive any further payments under the Agreement until all work called for has been fully performed. Any extra cost or damage to the City resulting from such default(s) shall be deducted from any money due or coming due to the Consultant. The Consultant shall bear any extra expenses incurred by the City in completing the work, including all increased City of Port Orchard and Skillings, Inc. Public Works Project: Ruby Creek Culvert Replacement Updated 4120221BDR Page 7 of 15 103 costs for completing the work, and all damage sustained, or which may be sustained, by the City by reason of such default. D. Suspension. The City may suspend this Agreement, at its sole discretion. Any reimbursement for expenses incurred due to the suspension shall be limited to the Consultant's reasonable expenses, and shall be subject to verification. The Consultant shall resume performance of services under this Agreement without delay when the suspension period ends. E. Notice of Termination or Suspension. If delivered to the Consultant in person, termination shall be effective immediately upon the Consultant's receipt of the City's written notice or such date as stated in the City's notice of termination, whichever is later. Notice of suspension shall be given to the Consultant in writing upon one week's advance notice to the Consultant. Such notice shall indicate the anticipated period of suspension. Notice may also be delivered to the Consultant at the address set forth in the "Notices" Section herein. F. Nothing in this Subsection shall prevent the City from seeking any legal remedies it may otherwise have for the violation or nonperformance of any provisions of this Agreement. 14. Discrimination Prohibited. A. The Consultant agrees not to discriminate against any employee or applicant for employment or any other person in the performance of this Agreement because of race, creed, color, national origin, marital status, sex, age, disability, or other circumstance prohibited by federal, state, or local law or ordinance, except for a bona fide occupational qualification. B. Violation of this Section shall be a material breach of this Agreement and grounds for cancellation, termination, or suspension of the Agreement by the City, in whole or in part, and may result in ineligibility for further work for the City. 15. Force Majeure. Notwithstanding anything to the contrary in this Agreement, any prevention, delay or stoppage due to strikes, lockouts, labor disputes, acts of God, acts of war, terrorist acts, inability to obtain services, labor, or materials or reasonable substitutes therefor, governmental actions, governmental laws, regulations or restrictions, civil commotions, casualty, actual or threatened public health emergency (including, without limitation, epidemic, pandemic, famine, disease, plague, quarantine, and other significant public health risk), governmental edicts, actions, declarations or quarantines by a governmental entity or health organization, breaches in cybersecurity, and other causes beyond the reasonable control of the Party obligated to perform, regardless of whether such other causes are (i) foreseeable or unforeseeable or (ii) related to the specifically enumerated events in this paragraph (collectively, a "Force Majeure"), shall excuse the performance of such Party for a period equal to any such prevention, delay or stoppage. To the extent this Agreement specifies a time period for performance of an obligation of either Party, that time period shall be extended by the period of any delay in such Party's performance caused by a Force Majeure. Provided however, that the current COVID-19 pandemic shall not be considered a Force Majeure unless constraints on a Party's City of Port Orchard and Skillings, Inc. Public Works Project: Ruby Creek Culvert Replacement Updated 4120221BDR Page 8 of 15 104 performance that result from the pandemic become substantially more onerous after the effective date of this Agreement. 16. Assignment and Subcontract. The Consultant shall not assign or subcontract any portion of the services contemplated by this Agreement without the prior written consent of the City. Any assignment made without the prior approval of the City is void. 17. Conflict of Interest. The Consultant represents to the City that it has no conflict of interest in performing any of the services set forth in Exhibit "A." In the event that the Consultant is asked to perform services for a project with which it may have a conflict, Consultant will immediately disclose such conflict to the City. 18. Confidentiality. All information regarding the City obtained by the Consultant in performance of this Agreement shall be considered confidential. Breach of confidentiality by the Consultant shall be grounds for immediate termination. 19. Non -Appropriation of Funds. If sufficient funds are not appropriated or allocated for payment under this Agreement for any future fiscal period, the City will so notify the Consultant and shall not be obligated to make payments for services or amounts incurred after the end of the current fiscal period. This Agreement will terminate upon the completion of all remaining services for which funds are allocated. No penalty or expense shall accrue to the City in the event that the terms of the provision are effectuated. 20. Entire Agreement. This Agreement contains the entire agreement between the parties, and no other agreements, oral or otherwise, regarding the subject matter of this Agreement shall be deemed to exist or bind either of the parties. If there is a conflict between the terms and conditions of this Agreement and the attached exhibits, then the terms and conditions of this Agreement shall prevail over the exhibits. Either party may request changes to the Agreement. Changes which are mutually agreed upon shall be incorporated by written amendments to this Agreement. 21. Non -waiver of Breach. The failure of either party to insist upon strict performance of any of the covenants and agreements contained herein, or to exercise any option herein contained in one or more instances, shall not be City of Port Orchard and Skillings, Inc. Public Works Project: Ruby Creek Culvert Replacement Updated 4120221BDR Page 9 of 15 105 construed to be a waiver or relinquishment of said covenants, agreements, or options, and the same shall be in full force and effect. 22. Modification. No waiver, alteration, modification of any of the provisions of this Agreement shall be binding unless in writing and signed by a duly authorized representative of the City and the Consultant. 23. Notices. All notices or other communications required or permitted under this Agreement shall be in writing and shall be (a) personally delivered, in which case the notice or communication shall be deemed given on the date of receipt at the office of the addressee; (b) sent by registered or certified mail, postage prepaid, return receipt requested, in which case the notice or communication shall be deemed given three (3) business days after the date of deposit in the United States mail; or (c) sent by overnight delivery using a nationally recognized overnight courier service, in which case the notice or communication shall be deemed given one business day after the date of deposit with such courier. In addition, all notices shall also be emailed, however, email does not substitute for an official notice. Notices shall be sent to the following addresses: Notices to the City of Port Orchard shall be sent to the following address: City Clerk City of Port Orchard 216 Prospect Street Port Orchard, Washington 98366 BwaIlace@cityofportorchard.us Phone:360.876.4407 Fax: 360.895.9029 Notices to the Consultant shall be sent to the following address: Phone No.: Email: 24. Resolution of Disputes; Governing Law. A. Should any dispute, misunderstanding or conflict arise as to the terms and conditions contained in this Agreement, the matter shall first be referred to the Mayor, who shall determine the term or provision's true intent or meaning. The Mayor shall also decide all questions which may arise between the parties relative to the actual services provided or to the sufficiency of the performance hereunder. B. If any dispute arises between the City and the Consultant under any of the provisions City of Port Orchard and Skillings, Inc. Public Works Project: Ruby Creek Culvert Replacement Updated 4120221BDR Page 10 of 15 106 of this Agreement which cannot be resolved by the Mayor's determination in a reasonable time, or if the Consultant does not agree with the Mayor's decision on a disputed matter, jurisdiction of any resulting litigation shall be filed in Kitsap County Superior Court, Kitsap County, Washington. C. This Agreement shall be governed by and construed in accordance with the laws of the State of Washington. In any suit or action instituted to enforce any right granted in this Agreement, the substantially prevailing party shall be entitled to recover its costs, disbursements, and reasonable attorneys' fees from the other Party. 25. Compliance with Laws. The Consultant agrees to comply with all federal, state, and municipal laws, rules, and regulations that are now effective or in the future become applicable to Consultant's business, equipment, and personnel engaged in operations covered by this Agreement or accruing out of the performance of those operations. 26. Title VI. The City of Port Orchard, in accordance with Title VI of the Civil Rights Act of 1964, 78 Stat. 252, 42 U.S.C. 2000d to 2000d-4 and Title 49, Code of Federal Regulations, Department of Transportation subtitle A, Office of the Secretary, Part 21, nondiscrimination in federally assisted programs of the Department of Transportation issued pursuant to such Act, must affirmatively insure that its contracts comply with these regulations. Therefore, during the performance of this Agreement, the Consultant, for itself, its assignees, and successors in interest agrees as follows: A. Compliance with Regulations. The Consultant will comply with the Acts and the Regulations relative to Nondiscrimination in Federally -assisted programs of the U.S. Department of Transportation, Federal Highway Administration (FHWA), as they may be amended from time to time, which are herein incorporated by reference and made a part of this Agreement. B. Nondiscrimination. The Consultant, with regard to the work performed by it during this Agreement, will not discriminate on the grounds of race, color, national origin, sex, age, disability, income -level, or LEP in the selection and retention of subcontractors, including procurements of materials and leases of equipment. The Consultant will not participate directly or indirectly in the discrimination prohibited by the Acts and the Regulations as set forth in Appendix A, attached hereto and incorporated herein by this reference, including employment practices when this Agreement covers any activity, project, or program set forth in Appendix B of 49 C.F.R. part 21. C. Solicitations for Subcontracts, Including Procurements of Materials and Equipment. In all solicitations, either by competitive bidding, or negotiation made by the Consultant for work to be performed under a subcontract, including procurements of materials, or leases of equipment, each potential subcontractor or supplier will be notified by the Consultant of the Consultant's obligations under this Agreement and the Acts and the Regulations relative to Non-discrimination on the grounds of race, color, national origin, sex, age, disability, income -level, or LEP. City of Port Orchard and Skillings, Inc. Public Works Project: Ruby Creek Culvert Replacement Updated 4120221BDR Page 11 of 15 107 D. Information and Reports. The Consultant will provide all information and reports required by the Acts, the Regulations and directives issued pursuant thereto and will permit access to its books, records, accounts, other sources of information, and its facilities as may be determined by the City or the FHWA to be pertinent to ascertain compliance with such Acts, Regulations, and instructions. Where any information required of the Consultant is in the exclusive possession of another who fails or refuses to furnish the information, the Consultant will so certify to the City or the FHWA, as appropriate, and will set forth what efforts it has made to obtain the information. E. Sanctions for Noncompliance. In the event of the Consultant's noncompliance with the non- discrimination provisions of this Agreement, the City will impose such contract sanctions as it or the FHWA may determine to be appropriate, including, but not limited to: i. withholding payments to the Consultant under the Agreement until the contractor complies; and/or ii. cancelling, terminating, or suspending the Agreement, in whole or in part. F. Incorporation of Provisions. The Consultant will include the provisions of paragraphs one through six in every subcontract, including procurements of materials and leases of equipment, unless exempt by the Acts, the Regulations and directives issued pursuant thereto. The Consultant will take action with respect to any subcontract or procurement as the City or the FHWA may direct as a means of enforcing such provisions including sanctions for noncompliance. Provided, that if the Consultant becomes involved in, or is threatened with litigation by a subcontractor, or supplier because of such direction, the Consultant may request the City to enter into any litigation to protect the interests of the City. In addition, the Consultant may request the United States to enter into the litigation to protect the interests of the United States. 27. Counterparts. This Agreement may be executed in any number of counterparts, each of which shall constitute an original, and all of which will together constitute this one Agreement. 28. Severability. Any provision or part of this Agreement held to be void or unenforceable under any law or regulation shall be deemed stricken and all remaining provisions shall continue to be valid and binding upon the City and the Consultant, who agree that the Agreement shall be reformed to replace such stricken provision or part with a valid and enforceable provision that comes as close as reasonably possible to expressing the intent of the stricken provision. IN WITNESS WHEREOF, the City and the Consultant have executed this Agreement as of the dates listed below. CONSULTANT CITY OF PORT ORCHARD City of Port Orchard and Skillings, Inc. Public Works Project: Ruby Creek Culvert Replacement Updated 4120221BDR Page 12 of 15 108 Title: Date: City of Port Orchard and Skillings, Inc. Public Works Project: Ruby Creek Culvert Replacement Updated 4120221BDR Robert Putaansuu, Mayor Date: ATTEST/AUTHENTICATE Brandy Wallace, MMC, City Clerk APPROVED AS TO FORM Port Orchard City Attorney's Office Page 13 of 15 109 APPENDIX A During the performance of this Agreement, the Consultant, for itself, its assignees, and successors in interest agrees to comply with the following non-discrimination statutes and authorities; including but not limited to: Pertinent Non -Discrimination Authorities: • Title VI of the Civil Rights Act of 1964 (42 U S.C. § 2000d et seq., 78 stat. 252), (prohibits discrimination on the basis of race, color, national origin); and 49 C.F.R. Part 21. • The Uniform Relocation Assistance and Real Property Acquisition Policies Act of 1970, (42 U.S.C. § 4601), (prohibits unfair treatment of persons displaced or whose property has been acquired because of Federal or Federal -aid programs and projects); • Federal -Aid Highway Act of 1973, (23 U.S.C. § 324 et seq.), (prohibits discrimination on the basis of sex); • Section 504 of the Rehabilitation Act of 1973, (29 U.S.C. § 794 et seq.), as amended, (prohibits discrimination on the basis of disability); and 49 C.F.R. Part 27; • The Age Discrimination Act of 1975, as amended, (42 U S.C. § 6101 et seq.), (prohibits discrimination on the basis of age); • Airport and Airway Improvement Act of 1982, (49 USC§ 471, Section 4 7123), as amended, (prohibits discrimination based on race, creed, color, national origin, or sex); • The Civil Rights Restoration Act of 1987, (PL 100-209), (Broadened the scope, coverage and applicability of Title VI of the Civil Rights Act of 1964, The Age Discrimination Act of 1975 and Section 504 of the Rehabilitation Act of 1973, by expanding the definition of the terms "programs or activities" to include all of the programs or activities of the Federal -aid recipients, sub- recipients and contractors, whether such programs or activities are Federally funded or not); • Titles II and III of the Americans with Disabilities Act, which prohibit discrimination on the basis of disability in the operation of public entities, public and private transportation systems, places of public accommodation, and certain testing entities (42 U.S.C. §§ 12131-12189) as implemented by Department of Transportation regulations at 49 C.P.R. parts 37 and 38; • The Federal Aviation Administration's Non-discrimination statute (49 U.S.C. § 47123) (prohibits discrimination on the basis of race, color, national origin, and sex); • Executive Order 12898, Federal Actions to Address Environmental Justice in Minority Populations and Low -Income Populations, which ensures discrimination against minority populations by discouraging programs, policies, and activities with disproportionately high and adverse human health or environmental effects on minority and low-income populations; • Executive Order 13166, Improving Access to Services for Persons with Limited English Proficiency, and resulting agency guidance, national origin discrimination includes discrimination because of limited English proficiency (LEP). To ensure compliance with Title VI, City of Port Orchard and Skillings, Inc. Public Works Project: Ruby Creek Culvert Replacement Updated 4120221BDR Page 14 of 15 110 you must take reasonable steps to -ensure that LEP persons have meaningful access to your programs (70 Fed. Reg. at 74087 to 74100); • Title IX of the Education Amendments of 1972, as amended, which prohibits you from discriminating because of sex in education programs or activities (20 U.S.C. 1681 et seq). City of Port Orchard and Skillings, Inc. Public Works Project: Ruby Creek Culvert Replacement Updated 4120221BDR Page 15 of 15 111 FXHIRIT A SCOPE OF WORK Prepared for: CITY OF PORT ORCHARD RUBY CREEK CULVERT REPLACEMENT October 10, 2025 Introduction: Skillings, Inc (Consultant) will prepare engineering design and environmental permitting for the City of Port Orchard (City) for the replacement of the Sidney Road culvert that conveys Ruby Creek. The project will involve the replacement of the existing squash -pipe culvert with a fish -passable structure. Design will include realignment of the channel beneath Sidney Road to alleviate scour issues. Project Assumptions: • Plans and specifications to be in accordance with City of Port Orchard Standards and WSDOT Standard Specifications. • Washington Department of Fish and Wildlife (WDFW) "Stream Simulation" method for culvert design per their Water Crossing Design Guidelines (2013), will be followed for design comparisons and ultimate culvert selection. • This scope of work does not include design of a bridge structure. • If a box culvert is the selected crossing method, it is assumed that prefabricated sections will be used and that structural design will be provided by the manufacturer. • Project planning will include evaluation of the use of full road closure with the use of Glennwood Road SE as a detour compared to utilizing Maintenance of Traffic (MOT) to keep Sidney Road open during construction. The comparison will include a cost/impacts analysis of full road closure versus keeping Sidney Road open. This analysis will be associated with analysis of structure type during the alternative analysis. The results of this will be presented to City Council and City Transportation Committee. Task 1— Project Administration and Management This task includes Consultant management of staff, invoices and progress reporting, bi-weekly progress meetings, QA/QC, and internal staff team progress meetings. Task Assumptions: • The duration of the work effort is assumed to be 18 months. • Progress meetings are assumed to be virtual via Teams, phone or e-mail. • Monthly progress meetings are estimated based on 18 total meetings with a half hour duration for two Consultant staff members in attendance per meeting. Task Description: 1. Prepare a project management plan, communications plan, master deliverables list, and schedule with updates. Project No. 25164 Ruby Creek Culvert Replacement Page 1 of 32 City Of Port Orchard October 14, 2025 112 2. Provide invoices with project update reports and earned value reports. 3. Provide Quality Management Plan, conduct QA/QC of all documents being formally submitted to City. 4. In-house coordination 5. Coordination with subconsultants. 6. Monthly progress meetings and correspondence with City. Deliverables: • Project Management Plan. • Communications Plan. • Master Deliverables List. • Quality Management Plan. • Project schedule with updates, if required. • Monthly invoices with project update reports. • Monthly progress updates correspondence. a. Agenda b. Meeting Minutes Task 2 —Topographic Survey This task consists of Consultant completing a topographic survey. Task Assumptions: • Topographic survey limits are depicted on the attached survey limits exhibit. • Utility locates will be provided by Washington Utility Notification Center, which can provide utility locates at no cost within the City right-of-way limits. Additional underground utility locating services needed will require a vendor and is not included in the scope. • A standard traffic control plan will be required for any survey work within ROW. Survey work will not require additional City permits. • Right of entry will be coordinated by the City and will be provided within the scheduled survey time. Title reports have been acquired in support of the project. Skillings will coordinate with Commonstreet to obtain title reports for use in ROW acquisition (permanent and temporary). • Horizontal — Survey work to be established on Washington State Coordinate System NAV83/91 • Vertical —The Vertical Datum for the survey work will reference North American Vertical Datum of 1988. • Units will be US Survey Feet. • Distances will be ground distances. • Topographic survey will be contained within the project limits. • Underground lines will be based on painted locate marks. • Ground measurements will be captured sufficient to generate a surface file at one -foot contours. • City will provide Right of Way alignments. Project No. 25164 City Of Port Orchard Ruby Creek Culvert Replacement Page 2 of 32 October 14, 2025 113 Task Description: Task 2.1— Project Setup 1. Field to finish setup and utility locate request. 2. On -site task to mark field locates. Task 2.2 — Survey Control Research 1. Research existing survey control and survey monuments related to the rights -of -way and parcel lines. 2. Review existing parcel information for lot and right of way determination Task 2.3 — Establish Survey Control 1. Establish survey control using a combination of Real Time Kinematic (RTK), and conventional survey methods in accordance with industry standards. a. Perform a field survey to establish horizontal and vertical survey control. b. Evaluate survey control and adjust accordingly. c. Recover existing survey monuments relevant to the re-establishment of existing right of way lines and parcel lines. d. Calculate existing right of way lines and parcel lines in AutoCAD digital survey control map. Task 2.4 — Topographic Survey i. Field Topographic Survey as shown in Attachment 2 Survey Limits depicting the following: • Existing road centerline. • Location and size of driveway cuts. • Sidewalk, curb, median and shoulder locations (as applicable). • Edge of pavement and edge of gravel. • Grade breaks in pavement. • Channelization lines. • Buildings, structures, and improvements. • Retaining walls. • Guardrails. • Fences, size, type, and height. • Signs and sign structures including description, size, and post material. • Signal poles. • Light posts. • Top / Toe of slopes. • Trees over 6-inch diameter measured at 4.5 feet above ground level. • Prominent landscape features (hedges, brush lines, boulders, etc.) • Storm drainage structures — structure types, pipe sizes, invert elevations. • Sanitary Sewer structures — structure types, pipe sizes, invert elevations. • Water line structures — Identified water valves, meters, blow offs and hydrants. • Above ground power structures — overhead power lines, poles and anchor locations. • Identify signal controllers, service cabinets, transformers, junction boxes. • Painted utility locates. Project No. 25164 City Of Port Orchard Ruby Creek Culvert Replacement Page 3 of 32 October 14, 2025 114 Task 2.5 — Topographic Base Map 2. Download and backup survey data daily. 3. Compile survey data into digital AutoCAD (Civil 3D) base map. 4. Draft topographic survey map at 1" = 20' scale. 5. Field check topographic survey map. 6. Update topographic survey map based on field edits. Task 2.6 — Utility Pothole Survey 1. Provide on -site observation of potholing efforts 2. Conduct or record measure down of identified utility during pothole services. 3. Survey the pothole locations after potholing has occurred. 4. Update survey basemap with utility data, pothole locations, and depths. Task 2.7 — Easement Preparation There is a potential that temporary or permanent easements will be required for the proposed project. This task is to prepare temporary and permanent easements. This scope of work is limited to development of four (4) permanent easements and four (4) temporary construction easements (TCE). 1. Prepare Legal description and exhibit map for permanent easement. 2. Prepare Legal description and exhibit map for TCEs. Deliverables • Topographic survey map • AutoCAD file of topographic survey. • Existing surface TIN file. • Right-of-way and lot determination within project limits. • Permanent Easement Legal Description and Exhibit • TCE Legal Description and Exhibits Task 3 — Environmental Documentation and Permitting Consultant will prepare environmental documentation for General Executive Order 21-02 and Endangered Species Act. This documentation will support application for aquatic permits under the Clean Water Act and Washington Hydraulic Code. Task Assumptions: • The project is funded through the Brain Abbott Fish Barrier Removal Program and does not include federal funding. • Ruby Creek confluences with Blackjack Creek which ultimately discharges to Sinclair Inlet and is considered a Water of the United States (WOTUS). As a WOTUS, this project will require review and permit approval from the United States Army Corps of Engineers (USACE) under Section 404 Project No. 25164 Ruby Creek Culvert Replacement Page 4 of 32 City Of Port Orchard October 14, 2025 115 of the Clean Water Act. The project will also require permit approval from the Washington State Department of Ecology (ECY) under Section 401 of the Clean Water Act. • Ruby Creek is considered a Water of the State. The project will require a Hydraulic Project Approval (HPA) from the Washington State Department of Fish and Wildlife (WDFW) under the Hydraulic Code of Washington. • The USACE Section 404 permit is a federal approval and will require consultation under Section 7(a) of the federal Endangered Species Act (ESA). • The project will require evaluation for historical and cultural resources under General Executive Order (GEO) 21-02. • It is assumed that this project will qualify as a Fish Habitat Enhancement Program (FHEP) project. As an FHEP, it is assumed that SEPA will not be required. The FHEP application will be submitted to WDFW and the City planning department. It is assumed that the planning department will have 15 days to submit comments to WDFW. • It is assumed that as an FHEP project, City of Port Orchard Municipal Code (POMC) 20.162.052 (Wetland Development Standards) and 20.162.72 (Fish and Wildlife Conservation Area Development Standards) is not required. Task 3.1— Biological Evaluation (BE) Task Assumptions: • Due to Federal permitting, an ESA consultation is required. A BE must be completed to comply with Section 7(a) of the Endangered Species Act. • A BE is needed to accompany the required documentation for submittal with the Section 404 permit application (USACE). • It is assumed that the project will qualify for coverage under USACE's Programmatic Biological Opinion; "Programmatic Endangered Species Act Section 7(a)(2) Biological Opinion, and Magnuson -Stevens Fishery Conservation and Management Act Essential Fish Habitat Response for the Seattle District Corps of Engineers Permitting of Fish Passage and Restoration Action in Washington State (FPRP III)." This Scope of Work does not include a formal Biological Evaluation beyond documentation that is required to meet the programmatic Biological Opinion. If a formal assessment is required, it can be added to this Scope of Work via supplement. Subtasks: 1. Consultant will complete a site visit to document existing conditions required for the BE. 2. Consultant will reference IPaC, NOAA Fisheries list, and PHS Listed Species to compile an up-to- date species list. 3. Consultant will make a species and habitat impact determination. 4. Consultant will complete a draft BA. 5. Consultant will complete a final BA. Deliverable: Project No. 25164 Ruby Creek Culvert Replacement Page 5 of 32 City Of Port Orchard October 14, 2025 116 • Draft Biological Assessment. • Final Biological Assessment Task 3.2 — Wetland and Stream Assessment Report USACE and ECY require submittal of a Wetland and Stream Assessment Report (WSAR) detailing wetlands and the stream (Ruby Creek) as supporting documentation to the Section 404/401 permit applications. Task Assumptions: • The Ordinary High -Water Mark (OHWM) and Bankfull Width of the fish -bearing stream will be identified environmental field efforts. • The Critical Area Report will document both vicinity wetlands and streams within the project area. • The Critical Area Report will be used in support of federal aquatic permitting under the Clean Water Act (Section 404 and 401). • The project corridor is located outside of the 100-year floodplain for Ruby Creek and will not require floodplain permit review. Subtasks: 1. Conduct Literature review. 2. Complete field delineation of OHWM. 3. Prepare flagging map for survey. 4. Prepare draft WSAR for submittal to City. 5. Respond to review comments and prepare Final WSAR. Deliverables: • Draft WSAR • Final WSAR Task 3.3 — Cultural Resources The project is state funded and will require cultural and historical review under General Executive Order 21-02. Assumptions: Tribal coordination will be prepared by Skillings and provided to the City to utilize City letterhead. Tasks• 1. Complete EZ-1 Form for submittal to the Department of Archaeology and Historic Preservation. Project No. 25164 Ruby Creek Culvert Replacement Page 6 of 32 City Of Port Orchard October 14, 2025 117 2. Prepare Tribal Consultation letters to initiate consultation with vested Tribes. All correspondence with Tribes to be consolidated as documentation to DAHP. Deliverables: • EZ-1 Form. • Consultation Letters to Tribes and documentation of Tribal correspondence. Task 4 — Aquatic Permitting Modification to the existing culvert on Ruby Creek will require aquatic permit approval under the Clean Water Act and Hydraulic Code of Washington. Task 4.1— Hydraulic Project Approval Application Task Assumptions: • Proposed work within the stream channel will require Hydraulic Project Approval (HPA) from the Washington State Department of Fish and Wildlife (WDFW). • Consultant will apply for HPA via WDFW's online portal (APPS). • Application for coverage under FHEP will be included in the HPA application. • Application for FHEP requires a copy of the JARPA to be submitted to the City of Port Orchard for review and comment to WDFW. The JARPA will be completed under a subsequent task. Subtasks: 1. Complete on-line HPA application. 2. Attend coordination meeting with WDFW and tribal stakeholders. Deliverables: • HPA application. • Meeting minutes from WDFW/Tribal Meeting Task 4.2 Joint Aquatic Resource Project Application (DARPA) Task Assumptions: • The placement of fill or excavation within the fish -bearing stream or vicinity wetlands will require a permit from the US Army Corps of Engineers (USACE) under Section 404 of the Clean Water Act. • The JARPA will be submitted to USACE for application for a Section 404 permit • The placement of fill material or excavation within the stream or wetland will also require a permit from the Washington State Department of Ecology (ECY) under Section 401 of the Clean Water Act. Project No. 25164 City Of Port Orchard Ruby Creek Culvert Replacement Page 7 of 32 October 14, 2025 118 • The JARPA will be submitted to ECY for application for a Section 401 permit (Water Quality Certification). • A Wetland and Stream Assessment Report (WSAR) will be submitted as supporting documentation with the DARPA. • Consultant will prepare USACE specific design exhibits to support the JARPA Application. Subtasks: 1. Prepare draft DARPA. 2. Complete USACE Exhibits. 3. Prepare final JARPA based on City comment. Submit to USACE, ECY, and City of Port Orchard. Deliverables: • Draft JARPA • Final JARPA Task 5 — Geotechnical Investigations Geotechnical investigation is necessary to determine existing soil conditions necessary for foundation design of the crossing structure. Task Assumptions: • Geosyntech will complete geotechnical investigation as a subconsultant to Consultant. • Geosyntec will participate in up to two planning meetings (up to 1 hour of project manager time per meeting) to coordinate the exploration phase. • The explorations will be performed within the asphalt -paved roadway along the culvert alignment, and on the City ROW. • The City will not charge or will waive the permitting fee for ROW access approval for the explorations. Traffic control will be required, and traffic control subcontractors will be managed by Geosyntec. • Geosyntech will develop a subsurface exploration plan and traffic control plans to support work within the ROW. The subsurface exploration plan will depict proposed locations for exploration and can be used to determine right -of -entry needs for parcels outside of public ROW. • Two (2) borings will be completed within the paved roadway. Up to four (4) shallow subsurface explorations with hand tools will be completed. • Geosyntech will complete a draft Geotechnical Engineering Report in support of the preferred design and a final Geotechnical Engineering Report in support of final design. Tasks: 1. Geotechnical Evaluation 1. Literature review and Create Subsurface Exploration Program • Participate in planning meetings • Create subsurface exploration plan Project No. 25164 Ruby Creek Culvert Replacement Page 8 of 32 City Of Port Orchard October 14, 2025 119 • Conduct geotechnical borings and shallow subsurface explorations 2. Geotechnical Laboratory Testing 3. Geotechnical Support for Design and Reporting 2. Provide subconsultant management of geotechnical investigation and documentation. Deliverables: • Subsurface Exploration Plan • Draft Geotechnical Engineering Report (PDF). • Final Geotechnical Engineering Report (PDF). Task 6 — Hydraulic and Geomorphic Reach Assessment This task consists of conducting a reach assessment of Ruby Creek to understand and identify the hydraulic, morphologic, and sediment transport processes that will influence the selection of appropriate culvert replacement alternatives. Using project survey and existing LiDAR we will identify the representative slope for the watershed. We will identify potential channel migration, long-term aegradation and degradation. A detailed survey will be completed in the culvert vicinity and reference reach that will include pebble counts and bankfull widths. Task Assumptions: • Right of entry will be coordinated by the City. Tasks: 1. Conduct fieldwork to: a. Collect bankfull width measurements. b. Pebble count to characterize sediment size distribution in reference reach. c. Identify natural and/or manmade fish passage barriers. d. Culvert measurements. e. Document observed lateral and longitudinal erosion. f. Identification of high-water marks. g. Observation and documentation of other relevant information such as existing large wood for the assessment and design of the culvert replacement. 2. Prepare memo documenting findings in a draft Hydraulic and Geomorphic Reach Assessment Memo, submit to City for review. 3. Meet with City to discuss draft memo and findings, including concurrence on representative bankfull width. 4. Address City comments, prepare final Hydraulic and Geomorphic Reach Assessment Memo. Deliverables: • Draft Hydraulic and Geomorphic Reach Assessment Memo (PDF). • Final Hydraulic and Geomorphic Reach Assessment Memo (PDF). Project No. 25164 Ruby Creek Culvert Replacement Page 9 of 32 City Of Port Orchard October 14, 2025 120 Task 7 — Feasibility and Alternatives Analysis Deliverables This task consists of completion of the Feasibility and Alternatives Analysis Deliverables as described in Appendix C, Manual 22 of the Fish Barrier Removal Board (FBRB). Task Assumptions: Consultant will utilize the Barrier Correction and Analysis Form for this milestone. • Consultant will work with the City to develop alternatives for assessment and preparation of cost estimates. For the purposes of the scope of work, it is assumed that three (3) alternatives will be developed and assessed, of which one alternative will be a metal arch culvert. • Conceptual cost estimates will include cost/impact analysis of full road closure versus construction under traffic of each alternative. Tasks: 1. Develop 3 alternatives for review and discussion with the City. 2. Consultation with RCO Technical Review Team on development of alternatives, and selection of preferred alternative. 3. Perform qualitative alternative assessment based on the following criteria: a. Connection to project goals and objectives b. Tangible benefit to all targeted species and life stages c. Stakeholder comments and community support d. Economic feasibility (appropriate cost -to -benefit ratio) e. Likelihood of success f. Ongoing maintenance requirements g. Project sustainability and resilience 4. Develop exhibits for the 3 alternatives and the preferred alternative. 5. Prepare 3 conceptual cost estimates for alternatives. 6. Complete Barrier Correction and Analysis Form, submit form for City review. 7. Meet with City to discuss and resolve comments. S. Prepare for and participate in presentation to City Transportation Committee. 9. Address and incorporate City comments into Barrier Correction and Analysis Form. 10. Provide Barrier Correction and Analysis Form for City to submit to WDFW/RCO. 11. Provide internal QA and QC and project coordination. Deliverables: • Barrier Correction and Analysis Form (PDF). • Presentation to Transportation Committee. Task 8 — Structural This task consists of completion of structural evaluation, alternative analysis, preliminary structural design, and final structural design. Task Assumptions: • Sargent Engineers will provide structural design as a subconsultant to Consultant. Project No. 25164 Ruby Creek Culvert Replacement Page 10 of 32 City Of Port Orchard October 14, 2025 121 • Structural design will be progressed to approximate 30% level of design to allow for analysis of cost and constructability. • Sargent will complete the following: o Cost estimates. o Geometric constraints. o Project staging and stage construction requirements. o Foundations. o Feasibility of construction. o Structural constraints o Maintenance. Tasks: 1. Structural Support/Design 2. Site Reconnaissance and Data Collection 3. Alternative Analysis — Structural Components 4. Preliminary Type, Size, Location — Structural Components as input to Design Report 5. 30% structural design 6. 60%, 90%, 100% design Deliverables: • Conceptual figure of each alternative (a single plan and profile sheet) in PDF. • CAD files can be provided after an electronic media release form is signed. • Rough order -of magnitude construction cost estimate for each alternative in PDF. • Approximate construction duration schedule for each alternative in PDF. • Structural discussion related to the items listed above for insertion into the TS&L report by the Prime Consultant. • Comments and recommended revisions to the master TS&L report to maintain consistency with the structural components. • Draft and final 30% structure plans in PDF. • 30% structural quantities and costs in Excel format. • AutoCAD backgrounds of the structure layout for use in the civil drawings of the Prime Consultant's plan set. • Structural design calculations for the culvert foundation per the requirements of the AASHTO LRFD Bridge Design Specifications, stamped by a WA Professional Engineer in PDF. • 60%, 90%, and final structure plans in PDF. • 60%, 90%, and final structural quantities and cost estimate in Excel Format. • 60%, 90%, and final structural specifications in Word format. • Final quantity calculations stamped by a WA Professional Engineer in PDF. • Construction schedule for structure components at 60%, 90%, and Final PS&E in PDF format. Project No. 25164 City Of Port Orchard Ruby Creek Culvert Replacement Page 11 of 32 October 14, 2025 122 Task 9 — Design Report (Preliminary Design) This task consists of completion of the Preliminary Design Report as described in Appendix C, Manual 22 of the Fish Barrier Removal Board (FBRB). Task Assumptions: • Consultant will prepare a Design Report for this milestone, in accordance with the format in Appendix C, Manual 22 of the FBRB. • Alternatives and preferred alternatives will be based on the alternatives developed and assessed in Task 7. • Hydrologic analysis will utilize USGS Streamstats and results will be compared to previous design report values. Climate change factors will use the mean percent change in 100-year flood flows from WDFW Future Projections for Climate -Adapted Culvert Design program. Tasks: 1. Perform hydrologic analysis, compute flood frequency discharges for existing conditions for Ruby Creek, including the climate change factored flow. 2. Develop two-dimensional (2D) HEC-RAS hydraulic model of the reach, approximately 300 feet upstream and downstream of the crossing. 3. Evaluate the flow levels and velocities of existing conditions and alternatives. 4. Document results of analysis in draft Preliminary Design Report, submit Preliminary Design Report for City review. 5. Meet with City to discuss and resolve comments. 6. Address and incorporate City comments into Preliminary Design Report. 7. Provide Preliminary Design Report for City to submit to WDFW/RCO. 8. Provide internal QA and QC and project coordination. Deliverables: • Preliminary Design Report (PDF). Task 10 — Plans, Specifications, and Estimate (Preliminary Design) This task consists of the preparation of preliminary design plans (60% plans) of the preferred alternative. Task 8 includes preparation of a preliminary cost estimate with contingency, and preliminary special provisions. Task Assumptions: • Consultant will maintain a design diary documenting approaches, problems, decisions, and actions. Diary will be maintained continuously throughout the project. • The quantity calculations notebook will be preliminary and will not be sufficient for the final construction cost estimate. • Preliminary Engineer's Estimate of Probable Costs to Construct will be prepared using WSDOT Unit Bid Price format. • Special provisions will be prepared utilizing WSDOT specifications format, to include City's General Special Provisions (GSPs), if any. Project No. 25164 Ruby Creek Culvert Replacement Page 12 of 32 City Of Port Orchard October 14, 2025 123 • Stormwater design requirements will follow the 2019 edition of the Department of Ecology's Stormwater Management Manual for Western Washington (2019 SWMMWW). • Project is anticipated to only trigger Minimum Requirements 1— 5. • Gas, water, power, telecommunication, and sanitary sewer, are present within the project corridor. • Existing utility conflicts will be evaluated during the 60% design phase. Consultant will provide design for City owned and operated utilities (water and sewer), it is assumed that franchise utilities will provide and prepare their own relocation construction documents and relocation contractor. • 60% Design Plan Sheets are anticipated to include: Tasks: 1. 2. 3 4. 5. 6. 7. 8. 9. 60% Design Plan Sheets Cover with Vicinity Map and Index Legend and Construction Notes Sheet Horizontal Control Plan Site Preparation/Demolition Plans Roadway Typical Sections Roadway Plan and Profile Sheets Stream Plan and Profile Sheets Culvert Plan, Section and Detail Sheets Stream Section and Detail Sheets Planting Plan Sheets Utility Relocation Plan Sheets Detour Plan Sheets Prepare design diary. Prepare preliminary stormwater report: a. Determine project limits and assess threshold discharge areas (TDA). b. Determine area totals for existing pervious and impervious areas, new and replaced surfaces. c. Assess applicability of overall Minimum Requirements and individual thresholds for LID. d. Select and implement preliminary design of BMPs for LID. e. Document findings in preliminary stormwater report. Prepare Traffic Control Plan (TCP) and Maintenance of Traffic (MOT) plan sheets to support construction under traffic. Prepare 60% Plans. Prepare preliminary Quantities Notebook. Prepare 60% Engineer's Estimate of Probable Cost to Construct. Prepare 60% Special Provisions. Assess potential Right -of -Way impacts and/or easement requirements. Submit 60% PS&E for City review. Project No. 25164 Ruby Creek Culvert Replacement Page 13 of 32 City Of Port Orchard October 14, 2025 124 10. Conduct plan -in -hand site visit with City to review layout, wingwall and easements needs, and determine adjustments (if needed). 11. Meet with City to discuss and resolve comments. 12. Address and incorporate City comments into 60% PS&E. 13. Provide 60% PS&E for City to submit to WDFW/RCO. 14. Provide internal QA and QC and project coordination. Deliverables: • One (1) set of 60% plans, specifications, and estimate (PDF). • Preliminary Stormwater Report. • Quantities Notebook. Task 11— Design Report (Final Design) This task consists of completion of the Final Design Report, addressing comments received from WDFW/RCO Technical Review Team, as described in Appendix C, Manual 22 of the Fish Barrier Removal Board (FBRB). Task Assumptions: There will be one round of review, comment resolution, and comment incorporation of the Preliminary Design Report by WDFW/RCO Technical Review Team, with one set of consolidated comments. Tasks: 1. Review WDFW/RCO Technical Review Team comments, provide initial comment responses to City. 2. Meet with City to discuss comments. 3. Conduct comment resolution meeting with City and WDFW/RCO Technical Review Team. 4. Address and incorporate comments into Final Design Report. 5. Provide Final Design Report for City to submit to WDFW/RCO. 6. Provide internal QA and QC and project coordination. Deliverables: • Final Design Report (PDF). Task 12 — Plans, Specifications, and Estimate (Final Design) This task consists of addressing comments from City, WDFW/RCO Technical Review Team, and advancing the Preliminary Design Plans to Final Design Plans (100% plans) for the preferred alternative. Task Assumptions: • There will be one round of review, comment resolution, and comment incorporation of the 60% PS&E by WDFW/RCO Technical Review Team, with one set of consolidated comments. • Preparation of a Contract Bid Package for bid advertisement is not included in the scope of work. Project No. 25164 Ruby Creek Culvert Replacement Page 14 of 32 City Of Port Orchard October 14, 2025 125 Tasks: 1. Review WDFW/RCO Technical Review Team comments on 60% PS&E, provide initial comment responses to City. 2. Meet with City to discuss comments. 3. Conduct comment resolution meeting with City and WDFW/RCO Technical Review Team. 4. Address and incorporate comments into 100% PS&E. 5. Prepare final stormwater report: a. Finalize stormwater report based on 100% design. 6. Prepare 100% level of plans as noted above. 7. Update Quantities Notebook to 100% level. 8. Update Engineer's Estimate of Probable Cost to Construct to 100% level. 9. Update Special Provisions to 100% level. 10. Submit 100% PS&E for City review. 11. Meet with City to discuss and resolve comments. 12. Address and incorporate City comments into 100% PS&E. 13. Provide 100% PS&E for City to submit to WDFW/RCO. 14. Review WDFW/RCO Technical Review Team comments on 100% PS&E, provide initial comment responses to City. 15. Meet with City to discuss comments. 16. Conduct comment resolution meeting with City and WDFW/RCO Technical Review Team. 17. Address and incorporate comments into Ad -Ready PS&E. 18. Provide internal QA and QC and project coordination. Deliverables: • One (1) set of 100% plans, specifications, and estimate (PDF). • One (1) set of Ad -Ready plans, specifications, and estimate (PDF). • Final Stormwater Report. • Quantities Notebook. Task 13 — Utility Coordination This task provides utility coordination for impacted utilities within the project limits. Overhead power, telecommunication lines, water, sewer, and natural gas utilities are located within the project corridor. Proposed design does not appear to require permanent relocation of overhead power/telecom. However, overhead utilities will be a conflict during construction, requiring coordination with the power and telecom purveyors for short-term line drops during structure installation. Natural gas mains will require relocation and coordination with the utility owner to accommodate the project. Water and sewer relocations, coordination, and design will be managed by the City. Task Assumptions: • Aerial utilities and utility poles will not require permanent relocation. • Franchise utilities impacted will provide their own design for conflict resolution. • The City will provide franchise agreements for each impacted utility. • If available, the City will provide utility contact information for each impacted utility. • Utility coordination meetings are assumed to have four meetings with each impacted utility for Project No. 25164 Ruby Creek Culvert Replacement Page 15 of 32 City Of Port Orchard October 14, 2025 126 a duration of one hour each meeting with two Consultant staff members present. Should additional meetings be deemed necessary, the additional meetings will be billed on a time and material basis. • Consultant makes no guarantees or warranties regarding the timeliness, performance, or actions of any third -party utility providers. Tasks: 1. Establish Utility Contacts List. 2. Prepare and maintain utility coordination and resolution schedule. 3. Prepare an exhibit for each impacted utility of potential conflict. 4. Utility coordination meetings. 5. Prepare utility coordination meeting minutes. 6. Review of utility owner prepared design. 7. Incorporate Franchise Utility provided design into plan set. 8. Prepare Utility Action Plans Deliverables: • Utility Contact List • Utility Coordination Schedule • Exhibit of impacted utilities • Utility coordination meeting agenda • Utility coordination meeting minutes • Utility Action Plans Task 14 — Right of Way This task provides coordination for Right of Way (ROW) activities. This includes permanent and temporary acquisition. Task Assumptions: • Commonstreet will provide ROW services for this project as a subconsultant to Consultant. Commonstreet has previously acquired title reports for adjacent parcels. Skillings will coordinate with Commonstreet for use of title reports in development of temporary or permanent ROW acquisition. Tasks: 1. ROW Project Management and Administration • Prepare for and attend early design development meetings as requested by the City or the project team. • Provide pre -acquisition services as requested by the City or project team to support early design development. • Respond to inquiries and needs identified by your team, the City and/or Project Stakeholders; Oversight of preliminary ROW activities to comply with WDFW and RCO requirements. • Provide written and oral status updates on right of way activities. • Provide oversight to all aspects of the Right of Way program. Project No. 25164 Ruby Creek Culvert Replacement Page 16 of 32 City Of Port Orchard October 14, 2025 127 • Review City's approved Right of Way Procedures. • Develop and execute the Right of Way program in compliance with state law, Uniform Act, WDFW, RCO, and WSDOT requirements. • Provide oversight of ROW activities to comply with BAFBRB requirements. • Maintain quality control/quality assurance protocols in the execution of the Right of Way tasks. • Coordinate title reviews. 2. Acquisition Services • Create WDFW and RCO-compliant project files for each parcel. • Request the City order new and/or updates to existing title commitments. • Produce templates approved by City to draft offer packages. • Prepare offer packages. • Edit documents during negotiations to memorialize agreements reached by the City. • Review of all valuation and compensation data. • QA/QC of all documents, tasks, and processes before, during, and after acquisition process. • Prepare, deliver, and present offer packages. • Negotiate settlements and draft justification memos when necessary. • If amicable settlements not approved by City, prepare and submit a condemnation package. • Coordinate the development of DV/Just Compensation approved by the City. 3. Project and File Close Out • Collaborate with City during closing, payment, and recording processes. • Set up client escrow account or facilitate execution of all conveyance documents, payment vouchers, proof of payment, and closing data along with recorded conveyance documents and closing of files. • Address any items brought forth by WDFW and/or RCO. • Prepare parcel files (electronic and/or hard copy) in a format requested by the City and provide to City for retention. Deliverables: • Preliminary offer packages • Draft justification letters • Final offer package END SCOPE OF WORK Project No. 25164 Ruby Creek Culvert Replacement Page 17 of 32 City Of Port Orchard October 14, 2025 128 EXHIBIT B-1 CONSULTANT COST COMPUTATION — MAN-HOURS City of Port Orchard o Ruby Creek Fish Passage z A C O � LA 3 LA o #25164 n 0 0 m C - T O Z 0 m < m D Z m n 9/26/2025 _0 � m n m n Z G) m to T cn m n = D r n � C, C m _< - D Z g D rn Z m D `—' m Z n 5 C < n = D Z z Z D D Z p N < rn < n n Z Fi N D 7o G� m M m m r � O� m _n m D Z D m < m O O TASK # TASK DESCRIPTION Project 1 Administration and Management Prepare a project management plan, communications 1 plan, master 12 deliverables list, and schedule with updates. Provide invoices 2 with project update 9 18 reports and earned value reports. Provide Quality Management Plan, conduct QA/QC of 3 all documents being 20 40 40 formally submitted to City. 4 In-house 9 60 coordination 5 Coordination with 9 4 subconsultants. Monthly progress 6 meetings and 9 9 4 correspondence with City. 2 Topographic Survey Project No. 25164 Ruby Creek Culvert Replacement Page 18 of 32 City Of Port Orchard October 10, 2025 129 2.1 Project setup 1 Field to finish setup 2 4 2 Mark utility locates 4 in field 2.2 Survey Control Research 1 research existing 4 10 survey control 2 review existing 4 8 parcel information 2.3 Establish Survey Control Establish survey control using a 1 combination of Real Time Kinematic (RTK) Perform a field survey to establish a horizontal and 4 4 10 vertical survey control. b Evaluate survey 2 9 control and adjust Recover existing survey monuments relevant to the re- c establishment of 8 existing right of way lines and parcel lines. 2.4 Topgraphic Survey 1 Field Topgraphic 10 40 40 survey 2.5 Topgraphic Basemap Download and 1 backup survey data 9 daily. Compile survey data 2 into digital AutoCAD 5 9 18 (Civil 3D) base map. Draft topographic 3 survey map at 1" = 4 9 27 20' scale. Project No. 25164 Ruby Creek Culvert Replacement Page 19 of 32 City Of Port Orchard October 10, 2025 130 Field check 4 topographic survey 4 map. Update topographic 5 survey map based 4 1 4 9 on field edits. Utility Pothole 2.6 Survey Provide on -site observation of 4 1 potholing efforts Conduct or record measure down of identified utility 1 during pothole 2 services. Survey the pothole locations after potholing has 1 6 10 3 occurred. Update survey basemap with utility data, pothole 1 4 9 locations, and 4 depths. 2.7 Easement Preparation Calculate existing 1.0 right of way lines 4 20 and parcel lines Prepare Legal description and 2 exhibit map for 8 20 20 permanent easement. Prepare Legal description and 3 exhibit map for 8 20 20 TCEs. Environmental 3 Documentation and Permitting Biological 3.1 Evaluation Consultant will 1 complete a site visit 8 to document Project No. 25164 Ruby Creek Culvert Replacement Page 20 of 32 City Of Port Orchard October 10, 2025 131 existing conditions required for the BE. Consultant will reference IPaC, NOAA Fisheries list, 2 and PHS Listed 4 Species to compile an up-to-date species list. Make a species and 3 habitat impact 1 4 determination. Complete a draft 4 BA. 4 80 5 Complete a final BA. 4 24 Wetland and 3.2 Stream Assessment Report Conduct Literature 1 4 review. Complete field 2 delineation of 1 18 OHWM. Prepare flagging 3 map for survey. 2 Prepare draft WSAR 4 for submittal to 4 60 City. Respond to review comments and 5 prepare Final 1 18 WSAR. 3.3 Cultural Resources Complete EZ-1 Form for submittal to the Department of 1 Archaeology and 1 9 Historic Preservation. Prepare Tribal Consultation Letters 2 and document 2 9 correspondence 4 Aquatic Permitting Project No. 25164 City Of Port Orchard Ruby Creek Culvert Replacement Page 21 of 32 October 10, 2025 132 Hydraulic Project 4.1 Approval Complete HPA 1 application 9 Attend Site visit 2 with WDFW and 6 6 Tribes Joint Aquatic 4.2 Resource Permit Application 1 Prepare draft JARPA 9 Complete USACE 2 Exhibits 1 4 18 Prepare final JARPA 3 for submittal 1 2 9 Geotechnical 5 Investigation Hydraulic and 6 Geomorphic Assessment Geomorphic 1 Assessment Collect bankfull a width 1 2 measurements. Pebble count to characterize b sediment size 2 4 distribution in reference reach. Identify natural and/or manmade c fish passage 1 2 barriers. d Culvert 1 2 measurements. Document observed lateral and e longitudinal 1 2 erosion. Identification of f high-water marks. 1 2 Project No. 25164 Ruby Creek Culvert Replacement Page 22 of 32 City Of Port Orchard October 10, 2025 133 Observation and documentation of other relevant information such as g existing large wood 2 4 for the assessment and design of the culvert replacement. Prepare memo documenting findings in a draft Hydraulic and 2 Geomorphic Reach 2 2 12 Assessment Memo, submit to City for review. Meet with City to discuss draft memo and findings, 3 including 1 1 concurrence on representative bankfull width. Address City comments, prepare 4 final Hydraulic and 1 1 4 Geomorphic Reach Assessment Memo. Feasibility and 7 Alternative Analysis Develop 3 1 alternatives 6 8 24 10 Consult with RCO 2 technical review 4 4 team Perform qualitative 3 alternative 8 18 assessment Develop exhibits for 4 3 alternatives 6 10 10 5 Prepare Estimate 4 10 for 3 alternatives Complete Barrier 6 1 4 Correction Form Project No. 25164 Ruby Creek Culvert Replacement Page 23 of 32 City Of Port Orchard October 10, 2025 134 Meet with City to 7 resolve comments 2 2 Prepare for and 8 present to City 4 6 6 Transportation Committee Incorporate City 9 comments into 4 4 Barrier Correction Form Submit Barrier 10 Correction Form to 1 City 8 Structural Design Design Report 9 (Preliminary Design) Perform hydrologic analysis, compute flood frequency discharges for 1 existing conditions 10 20 for Ruby Creek, including the climate change factored flow. Develop two- dimensional (2D) 2 HEC-RAS hydraulic 20 40 model of the reach Evaluate the flow levels and velocities 3 of existing 10 20 conditions and alternatives. Document results of analysis in draft Preliminary Design 4 Report, submit 2 16 32 Preliminary Design Report for City review. Project No. 25164 Ruby Creek Culvert Replacement Page 24 of 32 City Of Port Orchard October 10, 2025 135 Meet with City to 5 discuss and resolve 2 2 comments. Address and incorporate City 6 comments into 2 8 24 Preliminary Design Report. Provide Preliminary Design Report for 7 City to submit to 2 WDFW/RCO. Plans, Specifications and 10 Estimate (Preliminary Design) Prepare design 1 diary. 2 2 Prepare preliminary 2 stormwater report: Determine project limits and assess a threshold discharge 2 2 2 areas (TDA). Determine area totals for existing b pervious and 2 4 4 impervious areas, new and replaced surfaces. Assess applicability of overall Minimum c Requirements and 2 individual thresholds for LID. Select and d implement 2 4 preliminary design of BMPs for LID. Document findings e in preliminary 4 18 4 stormwater report. Project No. 25164 Ruby Creek Culvert Replacement Page 25 of 32 City Of Port Orchard October 10, 2025 136 Prepare Traffic Control Plan (TCP) and Maintenance of 3 Traffic (MOT) plan 2 4 20 20 sheets to support construction under traffic. 4 Prepare 60% Plans. 40 80 60 Prepare preliminary 5 Quantities 2 8 Notebook. Prepare 60% Engineer's Estimate 6 of Probable Cost to 2 8 Construct. Prepare 60% Special 7 Provisions. 20 Assess potential Right -of -Way 8 impacts and/or 4 4 easement requirements. Submit 60% PS&E 9 for City review. 2 Conduct plan -in - hand site visit with City to review layout, wingwall 10 and easements 5 5 needs, and determine adjustments (if needed). Meet with City to 11 discuss and resolve 2 2 comments. Address and 12 incorporate City 2 4 10 10 comments into 60% PS&E. Provide 60% PS&E 13 for City to submit to 2 WDFW/RCO. Design Report 11 (Final Design) Project No. 25164 Ruby Creek Culvert Replacement Page 26 of 32 City Of Port Orchard October 10, 2025 137 Review WDFW/RCO Technical Review 1 Team comments, 2 2 4 provide initial comment responses to City. Meet with City to 2 discuss comments. 2 2 Conduct comment resolution meeting with City and 3 WDFW/RCO 2 2 Technical Review Team. Address and 4 incorporate 2 20 comments into Final Design Report. Provide Final Design Report for City to 5 submit to 1 1 2 WDFW/RCO. Plans, Specifications and 12 Estimate (Final Design) Review WDFW/RCO Technical Review 1 Team comments on 2 2 60% PS&E, provide initial comment responses to City. Meet with City to 2 discuss comments. 1 1 Conduct comment resolution meeting with City and 3 WDFW/RCO 1 1 Technical Review Team. Address and 4 incorporate 4 10 10 comments into 100% PS&E. Project No. 25164 Ruby Creek Culvert Replacement Page 27 of 32 City Of Port Orchard October 10, 2025 138 Prepare final 5 stormwater report: Finalize stormwater a report based on 2 10 10 100% design. Prepare 100% level 6 of plans as noted 18 60 40 above. Update Quantities 7 Notebook to 100% 2 4 level. Update Engineer's Estimate of 8 Probable Cost to 2 4 Construct to 100% level. Update Special 9 Provisions to 100% 9 level. Submit 100% PS&E 10 for City review. 2 Meet with City to 11 discuss and resolve 2 2 comments. Address and incorporate City 12 4 16 16 comments into 100% PS&E. Provide 100% PS&E 13 for City to submit to 1 WDFW/RCO. Review WDFW/RCO Technical Review Team comments on 14 100% PS&E, provide 2 2 initial comment responses to City. Meet with City to 15 discuss comments. 1 1 Conduct comment resolution meeting with City and 16 WDFW/RCO 1 1 Technical Review Team. Address and 17 4 10 10 incorporate Project No. 25164 Ruby Creek Culvert Replacement Page 28 of 32 City Of Port Orchard October 10, 2025 139 comments into Ad - Ready PS&E. 13 Utility Coordination Establish Utility 1 Contacts List. 2 Prepare and maintain utility 2 coordination and 4 resolution schedule. Prepare an exhibit for each impacted 3 utility of potential 9 4 conflict. Utility coordination 4 4 4 meetings. Prepare utility 5 coordination 2 meeting minutes. Review of utility 6 owner prepared 4 4 design. Incorporate Franchise Utility 7 provided design 2 9 into plan set. Prepare Utility 8 Action Plans 2 4 18 4 14 Right -of -Way HOURS PER 33 221 342 556 24 304 257 57 167 13 68 103 18 DISCIPLINE Project No. 25164 Ruby Creek Culvert Replacement Page 29 of 32 City Of Port Orchard October 10, 2025 140 EXHIBIT B-2 CONSULTANT COST COMPUTATION — SUMMARY Classification Man Hours X Rate = Cost PRINCIPAL -IN -CHARGE 33 X $319.00 = $10,527.00 PROJECT MANAGER 221 X $294.00 = $64,974.00 PROJECT ENGINEER 342 X $283.00 = $96,786.00 ENGINEER 556 X $156.00 = $86,736.00 UTILITIES MANAGER 24 X $273.00 = $6,552.00 STAFF SCIENTIST 304 X $106.00 = $32,224.00 TECHNICIAN 257 X $179.00 = $46,003.00 PROFESSIONAL LAND SURVEYOR 57 x $195.00 = $11,115.00 PROJECT SURVEYOR 167 X $148.00 = $24,716.00 SURVEY PARTY CHIEF 13 X $130.00 = $1,690.00 2 MAN SURVEY CREW 68 X $224.00 = $15,232.00 SURVEY TECHNICIAN 103 X $126.00 = $12,978.00 PROJECT ADMINISTRATOR 18 X $178.00 = $3,204.00 Total Hours = 2163 Total NHR= $412,737.00 REIMBURSABLES: Mileage 1,200 X $0.700 = $840.00 Miscellaneous Expenses $250.00 X 10% _ $275.00 Total Expenses= $1,115.00 SUBCONSULTANT COST (See Exhibit E): Geosyntech $64,296.00 X 5% _ $67,510.80 Sargent $75,982.00 X 5% _ $79,781.10 Commonstreet $50,988.37 X 5% _ $53,537.79 Potholing Vendor $20,000.00 X 5% _ $21,000.00 Total Total Subconsull $221,829.69 SUB -TOTAL (NHR + REIMBURSABLES + SUBCONSULTANTS): sub Total = F$635,681,69 MANAGEMENT RESERVE FUND: SUB TOTAL = $635,681.69 x = MRF = $30,000.00 GRAND TOTAL = $665,682 Project No. 25164 Ruby Creek Culvert Replacement Page 30 of 32 City Of Port Orchard October 10, 2025 141 EXHIBIT B-3 CONSULTANT COST COMPUTATION — EXPENSES Item Description Basis Quantity Rate Total 1 Telephone Month $0.00 2 Auto Rental Each $0.00 3 Lodging Day $0.00 4 Per Diem -Meal Day $0.00 5 Photocopies - Blk & White Each $0.10 $0.00 6 Photocopies - Color Each $0.35 $0.00 7 Half Sized Prints Each $0.50 $0.00 8 Full Sized Prints Each $6.00 $0.00 9 Postage Month $0.00 10 Shipping Month $0.00 11 FAXs Each $0.00 12 Miscellaneous Project Costs Month $100.00 $0.00 13 Miscellaneous Survey Costs Estimated 1 $250.00 $250.00 14 InRoads Software Month -No of years $950.00 $0.00 15 Traffic Control Estimated $0.00 Total Miscellaneous Expenses $250.00 Mileage Per Mile 1200 0.700 $840.00 100 RT Min - Per Trip Total Expenses $1,090.00 Project No. 25164 Ruby Creek Culvert Replacement Page 31 of 32 City Of Port Orchard October 10, 2025 142 c [Mft m 02025Tm Mom. @OMnSbe - Geosyntec consultants October 9, 2025 Skillings, Inc. Attn: Patrick Skillings, PMP and Ian Lee, PE 5016 Lacey Blvd SE Lacey, WA 98503 Re: City of Port Orchard, Ruby Creek Sidney Road Fish Barrier Removal Port Orchard, Washington Proposal No. NCP2025-382 Dear Patrick and Ian: Geosyntec Consultants, Inc. (Geosyntec) thanks you for the opportunity to present this proposal to Skillings, Inc. (Skillings) to support the City of Port Orchard (City), Ruby Creek Fish Barrier Removal for the culvert crossing at Sidney Road (Project). We feel our extensive experience with fish barrier removal as well as in the City of Port Orchard, our responsiveness, and considerable experience with similar culvert replacement work will provide exceptional value and advance project development in an efficient and thoughtful manner. Project Understanding We understand the City wants to replace a barrier culvert with a box culvert or bridge. The replacement structure will be designed to meet fish passage and habitat enhancement objectives in accordance with Washington Department of Fish and Wildlife (WDFW) guidance and applicable regulations. Scope of Services Our scope of services is to provide geotechnical support for design of the box culvert or bridge. This will include a desktop study to review publicly available data, maps, and information provided by Skillings and the City. The following sections describe our proposed Tasks 1 and 2 under this scope of work. Task 1: Geotechnicai Evaluation The geotechnical evaluation Subtasks 1.1 through 1.3 are described below. Subtask M: Review and Subsurface Exploration Program Geosyntec will begin with reviewing existing subsurface data in the Project vicinity to provide background understanding of the site and geologic conditions in the site vicinity. We will prepare for subsurface exploration efforts under this subtask. This includes internal project team coordination and preparation of a site -specific health and safety plan. It also includes an initial site visit to assess existing conditions and mark potential exploration locations based on an understanding of the Project goals and access. Geosyntec will coordinate one -call public utility locates at least 3 business days in advance of the explorations and coordinate with a private utility locator to clear the proposed exploration areas prior to drilling. Page 1 144 Skillings, Inc. October 9, 2025 Proposal No. NCP2025-382 Geosyntec will conduct subsurface explorations through a one -day drilling program. The purpose of the drilling program is to develop an understanding of geologic and groundwater conditions in the Project vicinity. The drilling program will consist of two soil borings using a truck -mounted drilling rig, operated by a subcontractor. The soil borings will be advanced using hollow stem auger methods under the supervision of a Geosyntec field representative. The borings will be completed to a depth of approximately 55 feet below embankment fill surface approximately 25 feet below the creek bed elevation. Soil samples will be collected at 2.5- to 5-foot intervals using Standard Penetration Test (SPT) methods. Soil cuttings will be drummed and removed from the Site. The borings will be backfilled with bentonite chips in accordance with Ecology requirements. After the drilling program, Geosyntec will return to the site to conduct up to four shallow subsurface explorations with hand tools ("hand auger explorations") at the toe of the bank slopes and channel. The explorations will be completed to 5 feet bgs or to practical refusal, whichever occurs first. Relative density of the on -Site soils will be determined using a hand-held steel probe ("T-probe"). The hand auger explorations will be backfilled with excavated soils. Client Responsibility • The City will waive permit requirements and fees to complete subsurface explorations in the right-of-way (ROW). We will provide the City with advance notice of the proposed field schedule. Assumptions • Geosyntec will participate in up to two planning meetings (up to 1 hour of project manager time per meeting) to coordinate the exploration phase. • The explorations will be performed within the asphalt -paved roadway along the culvert alignment, and on the City ROW. The City will not charge or will waive the permitting fee for ROW access approval for the explorations. Traffic control will be required, and traffic control subcontractors will be managed by Geosyntec. Deliverables • Drilling program (2-day program) for up to two borings • Up to four shallow subsurface explorations with hand tools • Traffic Control Plan Subtask 1.2: Geotechnical LaboratoryTesting Geosyntec will subcontract a geotechnical testing laboratory to perform testing on selected soil samples retrieved from the explorations. Laboratory tests may include natural moisture content, particle size analysis, and Atterberg limit tests. Assumptions • Geosyntec will manage their work and that of their subcontractors. Subcontractor costs include the laboratory testing. Deliverables • Laboratory testing for soil samples Page 2 145 Skillings, Inc. October 9, 2025 Proposal No. NCP2025-382 Subtask 1.3: Geotechnical Support for Design and Reporting Using the results of the reconnaissance, exploration program, and laboratory testing, Geosyntec will perform geotechnical analysis to inform design of the Project elements and produce a draft geotechnical engineering report (GER) to document findings, results, conclusions, and recommendations in support of the preferred alternative project design. The draft GER will include the following: Characterization of Site geology, surficial channel morphology and subsurface conditions across the Site: ■ Logs of explorations and site and exploration map showing locations of the explorations; ■ Laboratory testing results; ■ Discussion of geologic hazards; ■ Discussion of suitable culvert foundation types, and other pertinent design elements; and ■ Geotechnical recommendations for construction of the proposed improvements (earthwork recommendations, groundwater control, subgrade preparation, recommendations for structural fill, etc.). ■ Code based seismic design recommendations following current WSDOT and AASTO guidance for the Safety Evaluation Earthquake (SEE) and Functional Evaluation Earthquake (FEE) design scenarios. As the project progresses, Geosyntec will update their recommendations to tailor design recommendations to the final design. Geosyntec will produce a final GER that will supersede the draft GER and include more detailed design recommendations. Geotechnical support under this subtask will include input and review of the project's preferred alternative plan sets, as well as input and review of the project specification and special provisions package. Assumptions • The guiding design document will be the WSDOT Bridge Design Manual. ■ The WSDOT Bridge Design Manual does not require seismic design for retaining walls with exposed heights less than 10 feet. The average exposed wall height (including additional height from potential scour exposure) will be less than 10 feet, thus we do not anticipate seismic design will be a design consideration for the culvert wingwalls. • Geosyntec will participate in up to six design development meetings over the course of the Project (up to 1 hour of project manager time and up to 1 hour support staff time per meeting). Deliverables • Draft GER in support of preferred alternative design • Final GER in support of final design ■ The final GER will incorporate review comments on the draft GER provided by Skillings and the City and will include long-term groundwater monitoring data. Page 3 146 Skillings, Inc. October 9, 2025 Proposal No. NCP2025-382 Task 2.• Project Management and Coordination We estimate 33 hours for project coordination to include up to a 1-hour team meeting to support the project. Schedule, Budget, and Contract Terms We can begin this scope of work within approximately 2 weeks of receiving authorization to proceed. We propose to complete this scope of work on a time and materials basis for $64,296. We understand Skillings will provide contract documents going forward. Project Budget Summary Task Title Labor Direct Costs Subs Total Task 1: Geotechnical Evaluation Subtask 1.1: Subsurface Exploration Program $17,794 $300 $15,100 $33,194 Subtask 1.2: Geotechnical Laboratory Testing $2,340 $2,000 $4,340 Subtask 1.3: Geotechnical Support for Design $20,012 $20,012 Task 2: Project Management $6,750 $6,750 Total Project Budget $46,896 $300 $17,100 $64,296 We will notify you and obtain your authorization if additional effort above and beyond the estimated scope of this work is required. This cost proposal is valid for 90 days unless extended in writing by Geosyntec. Page 4 147 Skillings, Inc. October 9, 2025 Sincerely, GeosynteCConsultants, Inc. Elson T. "Chip" Barnett, LEG Principal Engineering Geologist Chip.Barnett@geosyntec.com E-:OL� () cj-'a" Erik O. Andersen, PE Senior Principal Geotechnical Engineer Erik.Andersen@geosyntec.com Attachments: Schedule of Charges Proposal No. NCP2025-382 MACity of Port Orchard\Ruby Creek Fish Passage\Contracts\Proposal Material\Revised Oct- no Geomorph\SOW_rev_20251009_NCP2025- 382_Ski11i ngs_Ru byCreek.docx Page 5 148 Geosyntec consultants CONFIDENTIAL GEOSYNTEC CONSULTANTS - NW OPERATIONS 2025 U.S. RATE SCHEDULE Rate/Hour Staff Professional $157 Senior Staff Professional $180 Professional $208 Project Professional $240 Senior Professional $275 Principal $305 Senior Principal $330 Technician I $ 93 Technician II $104 Senior Technician I $112 Senior Technician II $120 Site Manager I $137 Site Manager II $149 Construction Manager I $157 Construction Manager II $170 Senior Designer $210 Designer $175 Senior Drafter/Senior CADD Operator $165 Drafter/CADD Operator/Artist $145 Senior Technical Editor $170 Technical Editor $150 Project Analyst $125 Project Administrator $103 Clerical $ 80 Direct Expenses Cost plus 15% Subcontract Services Cost plus 15% Specialized Computer Applications (per hour) $ 15 Personal Automobile (per mile) Current Gov't Rate Photocopies (per page) $ .09 Rates are provided on a confidential basis and are client and project specific. Unless otherwise agreed, rates will be adjusted annually based on a minimum of the Producer Price Index for Engineering Services. Rates for field equipment, health and safety equipment, and graphical supplies presented upon request. Construction management fee presented upon request. US 2025 Northwest B-C 149 Exhibit A Scope of Work Ruby Creek Culvert Replacement OBJECTIVE The objective of this Agreement is to provide structural engineering professional services necessary for the preparation of an alternatives analysis for the replacement, 30%, 60%, 90%, and final design of the replacement structure for the corrugated metal squash culvert that currently passes Ruby Creek below Sydney Road in Port Orchard, Washington. SERVICES Sargent Engineers, Inc. (Sargent) will work in coordination with Skillings (Prime Consultant) and its sub - consultants, along with the City of Port Orchard (the City) to prepare the structural elements required to develop up to three feasible options for inclusion in an alternatives analysis. After a preferred alternative is selected by the City, Sargent will develop structural 30% design layout, estimate, and schedule. Sargent will then provide supplemental support to the Prime Consultant during the 60%, 90%, and PS&E phases of the project. In order to accomplish this, Sargent will rely on the work completed by the Prime Consultant and its sub - consultants, with disciplines as listed below: 1. Geotechnical Engineering 2. Environmental Planning 3. Hydraulic and Hydrologic Engineering 4. Roadway/Civil Design 5. Surveying Sargent will coordinate with the Prime Consultant and assist as necessary to ensure the structural components of the design takes all relevant factors into account. In order to complete the structural components of the design, Sargent Engineers will perform the following tasks: 1. Structural Support/Design Sargent Engineers, will perform the following tasks to support the Prime Consultant in the project: A. Project Coordination Sargent Engineers will maintain an open line of communication with the Prime Consultant throughout the project to ensure that project needs are being met and to discuss key decisions as the project develops. Exhibit A Scope of Work Page 1 of 5 150 Sargent Engineers will provide monthly invoicing of all structural project work, along with brief progress descriptions. Sargent Engineers will participate in up to eight video conference meetings to discuss, review, and share information throughout the alternatives analysis and the 30% design phase. Assumptions: • All meetings will be virtual and none will be in -person • Sargent principal and/or staff engineer will participate in meetings. Deliverables: • Key information exchanged during meetings will be incorporated into the structural components of the alternatives analysis. • Monthly invoices and progress reports. B. Site Reconnaissance and Data Collection Sargent Engineers staff will visit the site to collect information regarding existing/adjacent structures and other site features that may impact the project. The survey provided by the Prime Consultant's survey sub -consultant will be imported and used as a base map for the project, and any available traffic count data and detour routes will be examined. Assumptions: • The City will obtain any needed rights of entry to allow Sargent to access lands both upstream and downstream from the crossing. Deliverables: • None. C. Alternatives Analysis — Structural Components Based on the site topography, hydraulic analysis, geotechnical analysis, civil/roadway design data, and environmental constraints identified by the Prime Consultant and its sub -consultants, Sargent Engineers will develop up to 3 structural concepts to fit site conditions for the replacement structure. The concepts will be developed with respect to structure configuration, traffic impacts, construction cost and duration, and durability. The WSDOT "Bridge Design Manual" and AASHTO "LRFD Bridge Design Specification" will be used as the basis of the crossing structure design requirements. Initial discussions indicate the three options will likely consist of a precast concrete 3-sided box culvert, a precast concrete arch culvert, or a corrugated metal arch culvert. Foundations will be either precast concrete, cast -in -place concrete, or a combination of both. Depending on geotechnical considerations provided by the geotechnical sub -consultant, the foundations may require deep foundations. Sargent will prepare conceptual figures of the crossing structure concepts to facilitate alternatives development. These conceptual figures are expected to consist of a single plan and elevation Exhibit A Scope of Work Page 2 of S 151 sheet for each for each alternative. Sargent will coordinate with the Prime consultant and subconsultants to provide guidance on potential staging plans. Sargent will prepare a rough order -of -magnitude construction cost estimate and approximate construction duration schedule for each alternative. Assumptions: • Topographic survey, roadway design data, stream design data, and geotechnical design data will be provided to Sargent to provide the basis for sizing the alternative structures. • Road design and drawings will be completed by the Prime Consultant or civil sub -consultant. • Stream design and drawings will be completed by the Prime Consultant or the hydraulic and hydrologic sub -consultant. • Sargent will prepare up to 3 bridge structure crossing options. Deliverables: • Conceptual figure of each alternative (a single plan and profile sheet) in PDF. o CAD files can be provided after an electronic media release form is signed. • Rough order -of magnitude construction cost estimate for each alternative in PDF. • Approximate construction duration schedule for each alternative in PDF. D. Type, Size, and Location Report — Structural Components The alternatives will be included in a Type, Size, and Location (TS&L) Report that identifies the pros/cons and estimate of construction costs for each alternative. The master TS&L Report will be prepared by the Prime Consultant. Sargent will contribute, in coordination with the Prime Consultant, the structural components of the TS&L report. These components will include the discussion related to the following items: • Cost estimates. • Geometric constraints. • Project staging and stage construction requirements. • Foundations. • Feasibility of construction. • Structural constraints • Maintenance. Deliverables developed during the alternatives analysis will be formatted for incorporation into the TS&L report and included as appropriate. Sargent will review the master TS&L Report as prepared by the Prime Consultant and provide comments and recommended revisions to ensure consistency between the master document and the structural components of the report. Assumptions: • The Prime Consultant will prepare the master TS&L Report, with Sargent providing the structural components for insertion into the master document. • The TS&L Study Report will follow the guidelines as documented in Section 2.1.53 of the current edition of the WSDOT Bridge Design Manual. Exhibit A Scope of Work Page 3 of 5 152 Deliverables: • Structural discussion related to the items listed above for insertion into the TS&L report by the Prime Consultant. • Comments and recommended revisions to the master TS&L report to maintain consistency with the structural components. E. 30% Design — Structural Components Upon selection by the City, the preferred alternative will be developed into 30% plans for the crossing structure. This will include the following tasks: • Refine the layout of the crossing structure. • Prepare the 30% structural plans, expected to be a structure layout sheet (plan and elevation sheet). • Prepare 30% quantities and construction cost estimates for the structural items. Assumptions: • Road and Stream components will not be prepared by Sargent. Deliverables: • Draft and final 30% structure plans in PDF. • 30% structural quantities and costs in Excel format. F. 60%, 90% and PS&E Design — Structural Components Sargent will provide assistance in advancing the 30% design to the 60% design, 90% design, and Final PS&E design level. Work performed by Sargent will consist of finalizing the structural components of the project for incorporation into a biddable package. This portion of the work will include the following tasks: • Finalize the culvert and wingwall layout. • Design foundation for the culvert. • Prepare 60%, 90%, and final plans for the culvert structure. Each successive submittal will provide greater detail and incorporate comments from the previous submittal. Plan sheets are expected to include a culvert layout, culvert headwall and wingwall layout, and culvert details. • Prepare 60%, 90% and final construction quantities and cost estimates for the culvert structure using WSDOT Standard Bid Items to the extent possible. • Prepare technical specifications for the culvert structure using WSDOT General Special Provisions to the extent possible. • Update construction schedule at the 60%, 90%, and Final PS&E design phases. Assumptions: • Only minor changes to the roadway and stream designs will be made between 30% and Final Design. Stream re -alignment, channel width changes, structure length revisions (along the stream) are considered major changes and will require additional scope. • Structural design of the culvert and wingwalls will be completed by the culvert Manufacturer on behalf of the Contractor. Exhibit A Scope of Work Page 4 of S 153 Deliverables: • AutoCAD backgrounds of the structure layout for use in the civil drawings of the Prime Consultant's plan set. • Structural design calculations for the culvert foundation per the requirements of the AASHTO LRFD Bridge Design Specifications, stamped by a WA Professional Engineer in PDF. • 60%, 90%, and final structure plans in PDF. • 60%, 90%, and final structural quantities and cost estimate in Excel Format. • 60%, 90%, and final structural specifications in Word format. • Final quantity calculations stamped by a WA Professional Engineer in PDF. • Construction schedule for structure components at 60%, 90%, and Final PS&E in PDF format. Exhibit A Scope of Work Page 5 of 5 154 Exhibit E Consultant Fee Determination Project: Ruby Creek Culvert Replacement Salary Cost Task Principal Senior Project Engineer Project Engineer Design Engineer Task Cost Rate: $254.05 $199.96 $147.51 $122.93 A. Project Coordination 52 $13,211 B. Site Reconnaissance and Data Collection 8 0 14 0 $4,098 C. Alternatives Analysis - Struct. Components 19 0 90 0 $18,103 D. TS&L - Struct. Components 12 0 28 0 $7,179 E. 30% Design 6 0 20 0 $4,475 F. 60%, 90%, and Final Design 20 0 161 0 $28,830 Total Hours 117 0 313 0 Total Salary Costs $75,894 Reimbursables Mileage 125 miles @ $0.70 $88 Grand Total $75,982 Prepared By: Scott Olson Date: 9/26/2025 155 ` 92 Lenora St, PMB 125 O O COMMONSTREET 5eattl121 (206)920-420-4017 0 CONSULTING info@csrow.com www.csrow.com September 3, 2025 Skillings Attn: Patrick Skillings 5016 Lacey Blvd SE Lacey, WA 98503 Re: Scope Proposal — City of Port Orchard: Ruby Creek Fish Barrier Project Thank you for the opportunity to provide right of way services for this important fish passage project for the City of Port Orchard. It is our understanding that Commonstreet is providing turn -key right of way services for the Ruby Creek Fish Barrier Project. This work will include early design/pre-acquisition support services, title review, valuations of partial acquisitions, property owner negotiations, acquisition documentation, closing, recording, and file close out support. The scope proposal provided herein is for a project with Brian Abbott Fish Barrier Removal Board (BAFBRB) funding. Scope Summary and Project Understanding Following fish passage improvement upstream by the Stetson Heights development and downstream by the State at SR16, the City was successful in obtaining DOE grant funding for fish passage under Sidney Road at Ruby Creek. A fish passage open box culvert or bridge is proposed. The proposal provided herein is based upon an assumption of potential ROW impacts assuming up to four (4) temporary easements (TE) and four (4) permanent easements (PE). It is understood that any change in scope will require an amendment in scope. All right of way activities will comply with the Uniform Relocation Assistance and Real Property Acquisition Policies Act (URA), as well as Washington Department of Fish and Wildlife (WDFW) and Washington State Recreation & Conservation Office (RCO) acquisition procedures. Assumptions • The ROW and Construction phases of the project do not have federal funding and no WSDOT ROW Certification will be required. • The project has funding from the Brian Abbott Fish Barrier Removal Board (administered jointly by WDFW and RCO). • The City will provide a ROW Plan showing proposed acquisition areas and size. • The City requires no more than four (4) partial acquisitions consisting of up to four (4) TEs and four (4) PEs. • If it is determined the City requires fee acquisitions on any of the parcels, this will require additional scope and fee. • There are no full acquisitions. • No design changes will occur after the initial valuation assignment is authorized. 156 Page 2 COMMONSTREET CONSULTING • Legal descriptions suitable for recording and meeting all WSDOT requirements will be provided to Commonstreet from a licensed survey company. • No occupants or personal property will be displaced requiring relocation services and no relocation services will be required. • The City will provide ROW document templates or Commonstreet will utilize WSDOT Local Public Agency templates and provide to the City for review and approval. • No more than four (4) Waiver Valuations will be required. • If impacts make waiver valuations ineligible, an appraisal and appraisal review will be completed. Appraisal and appraisal reviews will require additional scope and fee. • Commonstreet to use the title reports previously obtained during preliminary work for the City. • The City will pay directly to the title company all expenses for updated title commitments (if any), recording fees, escrow services, and title insurance. Best regards, f Joel Schleppi Project Manager Western/Central Washington Scope of Services Task 1.0 — ROW Project Management and Administration • Prepare for and attend early design development meetings as requested by the City or the project team; • Provide pre -acquisition services as requested by the City or project team to support early design development; • Respond to inquiries and needs identified by your team, the City and/or Project Stakeholders; • Oversight of preliminary ROW activities to comply with WDFW and RCO requirements; • Provide written and oral status updates on right of way activities; • Provide oversight to all aspects of the right of way program; • Commonstreet will manage ROW Team sub -consultants to prepare the Waiver Valuations or prepare the Waiver Valuations in-house; • Review City's approved Right of Way Procedures; • Develop and execute the Right of Way program in compliance with state law, Uniform Act, WDFW, RCO, and WSDOT requirements; • Provide oversight of ROW activities to comply with BAFBRB (Brian Abbott Fish Barrier Removal Board) requirements; • Maintain quality control/quality assurance protocols in the execution of the right of way tasks; • Coordinate title reviews. SCOPE AND FEE PROPOSAL I Ruby Creek Fish Barri(157 Page 3 COMMONSTREET CONSULTING Task 2.0—Acquisition Services • Create WDFW and RCO-compliant project files for each parcel; • Request the City order new and/or updates to existing title commitments; • Produce templates approved by City to draft offer packages; • Prepare offer packages; • Edit documents during negotiations to memorialize agreements reached by the City; • Review of all valuation and compensation data; • QA/QC of all documents, tasks, and processes before, during, and after acquisition process; • Prepare, deliver, and present offer packages; • Negotiate settlements and draft justification memos when necessary; • If amicable settlements not approved by City, prepare and submit a condemnation package; • Coordinate the development of DV/Just Compensation approved by the City. Task 3.0 — Project and File Close Out • Collaborate with City during closing, payment, and recording processes; • Set up client escrow account or facilitate execution of all conveyance documents, payment vouchers, proof of payment, and closing data along with recorded conveyance documents and closing of files; • Address any items brought forth by WDFW and/or RCO; • Prepare parcel files (electronic and/or hard copy) in a format requested by the City and provide to City for retention. SCOPE AND FEE PROPOSAL I Ruby Creek Fish Barri(158 Scope and Fee Table Summary City of Port Orchard Ruby Creek Fish Barrier Project 9/26/25 The overhead rate shall increase to the revised state overhead rate, effective upon approval of the revised overhead rate by the state in which Indirect Cost Rate 121.85% the project is located. Fixed Fee _ 15.00% Tasks :Job Classifications Direct Labor Overhead Fixed Fee Qty. Total ?Principal $125.00 $152.31 $41.60 4 $1,275.64 1.0 Project Management and Project Manager WOO $106.01 $28.95 6 $1,331.77 Administration Sr. Project Control Specialist $68.00 $82.86 $22.63 10 $1,734.87 Project Manager $87.00 $106.01 $28.95 8 $1,775.69 iSr. Righ t o f Way Agent t $81.00 $98.70 $26.95 96 i $19,838.71 2.0 Acquisition Services RightofWayAgent $50.00 $60.93 $16.64 96 $12,246.12 iSr. ROW Technician $68.00 $82.86 $22.63 6 $1,040.92 Sr. Project Control Specialist $68.00 $82.86 $22.63 12 $2,081.84 Project Manager $87.00 $106.01 $28.95 2 $443.92 iSr. Righ t o f Way Agent t $81.00 $98.70 $26.95 2 $413.31 3.0 Project and File Close-out Righ t o f Way Agent 1 $50.00 1 $60.93 1 $16.64 3 $382.69 ?Sr.Project Control Specialist $68.00 $82.86 $22.63 8 $1,387.89 Labor Hours Total 253 $43,953.37 Expenses :Type Rate Qty. Total Waiver Valuations $1,600.00 i 4i $6,400.00 Reproduction, Postage, and Delivery $175.00 1 : $175.00 Other Direct Costs (ODC's) Ferry Fare Reimbursement $250.00 1; $250.00 i Mileage at current federal rate 0.70 300 i $210.00 Expense Total $7,035.00 Contract Total $50,988.37 159 RESOLUTION NO. A RESOLUTION OF THE CITY OF PORT ORCHARD, WASHINGTON, AUTHORIZING THE MAYOR TO EXECUTE A CONTRACT WITH SKILLINGS, INC. FOR ENGINEERING DESIGN SERVICES FOR THE RUBY CREEK CULVERT REPLACEMENT PROJECT AND DOCUMENTING PROCUREMENT PROCEDURES WHEREAS, the existing culvert conveying Ruby Creek beneath Sidney Road has been identified as a fish passage barrier; and WHEREAS, upstream and downstream fish passage improvements have been completed by the Stetson Heights development and WSDOT respectively, and the City is now moving forward with design services to replace the culvert with a fish -passable structure (the "Project"); and WHEREAS, the Project will address habitat connectivity, stream function, and regulatory compliance, and will incorporate roadway, utility, and environmental considerations; and WHEREAS, the City accepted grant funding from the Recreation and Conservation Office to support the Ruby Creek Culvert Replacement Project, as authorized by Resolution No. 081-22, which formally approved the City's application for and acceptance of RCO Project #21-1498; and WHEREAS, pursuant to RCW 39.80 and the City's procurement policies, the City issued a Request for Qualifications (RFQ) on June 4, 2025, for professional engineering services; and WHEREAS, by the July 1, 2025, deadline, multiple Statements of Qualifications were received, and after evaluation and interviews, the City's Public Works Department determined Skillings, Inc. to be the most qualified consultant; and WHEREAS, Public Works staff worked with Skillings, Inc. to finalize the scope, fee, and contract terms, and the agreement totals $665,682 and covers the period from October 28, 2025, to April 28, 2027, with two optional one-year extensions; and WHEREAS, the Port Orchard City Council, in alignment with the State Auditor's Office recommendation, wishes to document the consultant selection process for this contract by Resolution, Now, therefore, THE CITY COUNCIL OF THE CITY OF PORT ORCHARD, WASHINGTON, HEREBY RESOLVES AS FOLLOWS: 11130315.1 - 366922 - 0001 160 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 approves and authorizes the Mayor to execute a consultant services agreement with Skillings, Inc. for the Ruby Creek Culvert Replacement Project, in the amount of Six Hundred Sixty -Five Thousand Six Hundred Eighty -Two Dollars ($665,682), as attached hereto as Exhibit A and incorporated herein by this reference. THAT: This Resolution shall take full force and effect upon passage and signatures hereon. PASSED by the City Council of the City of Port Orchard, SIGNED by the Mayor and attested by the Clerk in authentication of such passage this 28th day of October, 2025. Robert Putaansuu, Mayor ATTEST: City Clerk, Brandy Wallace, MMC 11130315.1- 366922 - 0001 161 CITY COUNCIL ADVISORY COMMITTEE MEETING DATES STANDING COMMITTEE Date & Time Location Economic Development and Tourism November 10, 2025; 9:30am — 2"d Monday of the month Remote Access Utilities TBD; S:OOpm — 211 Tuesday of the month Remote Access Finance TBD; 4:OOpm — 3rd Tuesday of the month Remote Access Transportation October 28, 2025; 4:30pm- 4th Tuesday of the month Remote Access Land Use November 19, 2025; 4:30pm -3rd Wednesday of the month Remote Access Lodging Tax Advisory TBD 2025 City Hall Sewer Advisory TBD, 2025; 3:OOpm WSUD Outside Agency Committees Varies Varies Coffee with Council November 1, 2025; 10:OOAM 701 Bay Street "Dates subject to change I1Tile\Y97:7 Robert (Rob) Putaansuu Mayor Administrative Official ,�l�l'L�L�1�1►[�ll� Fred Chang Councilmember Position 6 (Mayor Pro-Tempore) E/D & Tourism Committee Finance Committee Eric Worden Councilmember Position 4 Land Use Committee Utilities/Sewer Advisory Committee KRCC-alt DEPARTMENT DIRECTORS Mark Trenary Councilmember Position 1 Finance Committee, Chair Transportation Committee, Chair KRCC PSRC-alt Heidi Fenton Councilmember Position 5 Utilities/Sewer Advisory Committee E/D & Tourism Committee Transportation Committee Jay Rosapepe Councilmember Position 2 Utilities/Sewer Advisory Committee, Chair Land Use Committee, Chair KEDA-alt John Morrissey Councilmember Position At -Large Finance Committee E/D & Tourism Committee Lodging Tax, Chair Kitsap Economic Development Alliance PSRC EDD-alt Tim Drury Debbie Lund, CEBS SPHR SHRM-SCP Noah Crocker, M.B.A. Municipal Court Judge Human Resources Director Finance Director Matt Brown Nicholas Bond, AICP Denis Ryan, CPWP-M, CPRP Police Chief Community Development Director Public Works Director Scott Diener Councilmember Position 3 Land Use Committee Transportation Committee Kitsap Public Health District Brandy Wallace, MMC, CPRO City Clerk 162