Loading...
HomeMy WebLinkAbout04/28/2026 - Regular - Packet�OI Meeting Location: 'fGiVf- City Hall Contact us: ORCHARD. Phone ityha l@porto7 Council Chambers Email cityhall@portorchardwa.gov 216 Prospect Street Port Orchard, WA 98366 www.portorchardwa.ov City Council Regular Meeting Tuesday, April 28, 2026 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://us02web.zoom.us/m/86776920792 Zoom Meeting ID: 867 7692 0792 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. Public Hearing at 6:30 PM (Accepting public testimony from citizens limited to the specific items listed.) A. Opportunity Zones (Bond) 4. 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.) 5. 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 Page 1 of 132 C. Adoption of a Resolution to Ratify the City of Port Orchard Artificial Intelligence Policy (Crocker) D. Adoption of a Resolution Declaring Certain Personal Property as Surplus and Authorizing its Disposition Thereof (Wallace) E. Approval of Special Event Road Closure: South Kitsap Graduation Car Cruise (Wallace) F. Approval of Minutes: April 9, 2026, City Council Town Hall G. Approval of Minutes: April 14, 2026, City Council Regular Meeting H. Approval of Minutes: April 17, 2026, City Council Retreat 6. Presentation A. Lund Corridor Project Update — Kitsap County 7. Business Items A. Adoption of an Ordinance Amending the 2025-2026 Biennial Budget (Crocker) B. Adoption of an Ordinance Amending POMC 13.10 Rate Reduction for Low Income(Crocker) C. Adoption of a Resolution Repealing 1735 and Establishing an Updated Water Leak Policy (Crocker) D. Adoption of a Resolution Establishing the Downtown Building Refacing Grant Policy (Archer) E. Approval of Amendment No. 2 to Contract C063-25 with Active Construction for the Sidney Road Non -Motorized Project (Ryan) F. Approval of a Professional Services Agreement for Legal Services for the City of Port Orchard Building Board of Appeals (Archer) 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 Directors 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. Page 2 of 132 15. Adjournment 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. To subscribe to our general news & public notices click the link: http://portorchardwa.gov/subscribe. For current City Council member and contact information, please visit https://Portorchardwa.gov/departments/city-council/. For Committee Membership please visit https://portorchardwa.gov/city-council-advisory-committees/. Page 3 of 132 ORCHARD City of Port Orchard 216 Prospect Street, Port Orchard, WA 98366 (360) 876-4407 • FAX (360) 895-9029 Agenda Staff Report Public Hearing at 3.A. Opportunity Zones (Bond) 6:30 PM: Meeting Date: April 28, 2026 Presenter: Nick Bond, Community Development Director Summary and Background: The purpose of this public hearing is to receive community input on whether the City of Port Orchard should pursue Opportunity Zone (OZ) designation for Census Tract 923 as part of the upcoming federal nomination cycle. The federal Opportunity Zone program was created in 2017 to encourage long-term private investment in designated census tracts through federal tax incentives. Under the program, investors may defer taxes on eligible capital gains that are reinvested into Qualified Opportunity Funds, which in turn must invest in real estate or operating businesses located within designated OZ tracts. Investments held for at least 10 years may qualify for additional federal tax benefits. These incentives are intended to attract private capital, support job creation, and stimulate economic development in communities that meet federal eligibility criteria. Washington State's first round of OZ nominations resulted in two designated census tracts within Port Orchard. Since that time, several reforms aimed at modernizing and strengthening the program have occurred. Recent federal updates have focused on improving transparency, refining eligibility standards, and ensuring that OZ investments produce measurable community benefits. Examples of these reforms include strengthened reporting requirements for Qualified Opportunity Funds, updated income -eligibility thresholds to better target economically distressed areas, and new provisions intended to support rural communities. The U.S. Department of the Treasury has authorized a new designation cycle in 2026. Due to revised federal eligibility criteria, only two census tracts in Port Orchard qualify for consideration, including Census Tract 923. The State of Washington will evaluate potential nominations through a competitive process administered by the Department of Commerce. Demonstrated community support is a key scoring factor in the state's evaluation. The intent of this public hearing is to gather feedback from residents, businesses, and stakeholders on whether the City should prepare and submit a nomination for Census Tract 923. Testimony received will help inform the City Council's decision on whether to move forward with an application. Additional information about the Opportunity Zone program is available from the Washington State Department of Commerce at: Page 4 of 132 https://www.commerce.wa.gov/opportunity-zones/ Relationship to Comprehensive Plan: 6 - Economic Development Recommendation: Note: Participation in this program would help to implement numerous goals related to the Comprehensive Plan and both the subarea plans for Sedgwick-Bethel and Bethel -Lund. Open a public hearing to gather public comment, deliberate and take action to seek Opportunity Zone designation. Motion for Consideration: I move that the City of Port Orchard pursue/not pursue Opportunity Zone Designation for Census Tract 923 Has item been presented to Committee/Work Study? No If so, which one: N/A Fiscal Impact: None foreseen. Alternatives: Do not hold a public hearing and do not seek Opportunity Zone designation. Attachments: 2_Map_Draft Page 5 of 132 1 of 2 MFI: 102% PR:6.88% MF1:97% ^ Census Tract: 53035092300 X Tracyton PR:12.42% _ _ MFI: 82% MFI: 62% Zuum tc' PR:23.92'/o PR: 11.63% MFI:69% �--- OZ eligible k:14.030 MFI:67% Rural MFI: 106%APR: 13.38% PR:10.28% \ Population: 6894 MF1:89% PR:19.12% 1:97% � --]-MFI:73% Metropolitan Statistical Area: B,emerton-Silverdale-Port 10.44% \ PR: 13.77% Orchard, WA Metro Area MF1:66% _ PR: 25.496' M d' F I I ^ 72 01 1 MFI: 188% PR: 0.87% MFI: 18' PR: 2.51 --I MR,105% IPR: 1151% Manchester e an am r y ncome. MFI:87% PR• 6 28°/ � Reference MFL $ 120,324 r )MFI:83*o POrt MFI ratio: 60 Kits9p Orcha d°�RarkwoodPoverty Rate: 11.50 Unemployment Rate: 5.10% _ PR: 10.8% MFI: 79% MFI:95% PR:9.3% 8/° ° PR: 15.36% 18% MFI: 8E PR: 7Z: 4'Belfair MFI: 100% PR: 8.51 % MFI: 114% PR: 2.63% MFI: 67% _ PR: 15.18% MFI: 104% PR: 2.05% MF1:110% PR: 5.36% Fragarla MFI:1231 PR: 1 AT MFI: 120% PR:7.43% Page 6 of 132 ORCHARD City of Port Orchard 216 Prospect Street, Port Orchard, WA 98366 (360) 876-4407 • FAX (360) 895-9029 Agenda Staff Report Consent Agenda: 5.C. Adoption of a Resolution to Ratify the City of Port Orchard Artificial Intelligence Policy (Crocker) Meeting Date: April 28, 2026 Presenter: Noah Crocker, Finance Director Summary and Background: Over the past year, the landscape of municipal technology has shifted significantly with the rapid proliferation of Generative Artificial Intelligence tools. Recognizing both the potential for increased operational efficiency and the inherent risks regarding data privacy, bias, and cybersecurity, the City of Port Orchard initiated a proactive governance strategy. Chronology of Policy Development: January 2025: The City initiated the formation of a multi -departmental Al Committee, including representation from Finance, Public Works, HR, Planning, and the Police Department. April 24, 2025: The Al Committee held its inaugural meeting to define the scope of municipal Al use and identify departmental needs. 2025-2026: The committee, led by the IT Department, engaged in a structured review of emerging standards, focusing on risk -based classification of Al tools and the protection of City owned data. Current State: The resulting policy establishes a "human -in -the -loop" requirement, ensuring that Al generated content is vetted by staff, and prohibits the input of sensitive or confidential information into public Al models. Purpose of the Resolution: The adoption of this policy formalizes the City's commitment to "Responsible Al." It ensures that as the City explores modern infrastructure solutions and service enhancements, it does so with a clear set of guardrails that prioritize public trust and legal compliance. By formalizing these standards now, Port Orchard positions itself as a regional leader in municipal technology governance. Page 7 of 132 Relationship to Comprehensive Plan: N/A Recommendation: The IT Department and the City Al Committee recommend that the City Council move to ratify and enact the City of Port Orchard Al Policy to provide a governing framework for the ethical, secure, and transparent use of generative and analytical Al technologies by City staff. Motion for Consideration: I move to adopt a resolution ratifying the City of Port Orchard Al Policy. Has item been presented to Committee/Work Study? Yes If so, which one: March 17, 2026, Council Work Study Session Fiscal Impact: There is no direct fiscal impact associated with the adoption of this policy. Future implementation of specific Al backed software or infrastructure improvements will be brought before the Council through the standard biennial budget and procurement processes Alternatives: Do not adopt and provide further guidance. Attachments: 910 Port Orchard Al Policy Page 8 of 132 CITY OF PORT ORCHARD 910 - Artificial Intelligence Policy Effective Date: ASAP PURPOSE The purpose of this policy is to set forth the requirements to observe when acquiring and using software that meets the definition of "artificial intelligence." SCOPE All individuals and entities (herein defined as "Users"), including City departments, employees, elected officials, vendors, contractors, and volunteers, who operate under the authority of the City of Port Orchard and engage with City data are bound by this policy. DEFINITIONS Terms used in the current Artificial Intelligence space are fluid and dynamic. Attached in Appendix A is a list of current definitions that have been approved by the Al committee to ensure a shared understanding of its scope and application. ARTIFICIAL INTELLIGENCE (Al) PRINCIPLES These Principles describe general codes of conduct that represent the values and responsibilities of the City to its residents. This policy serves to inform Users in their use of Al technology. Users shall adhere to the principles and requirements outlined in this policy. • Innovation: The City values public service innovation to meet our residents' needs. We commit to responsibly explore and continuously evaluate Al technologies, which will improve our services and advance beneficial outcomes for our community. • Transparency and Accountability: The City values transparency and accountability and understands the importance of these values in our use of Al systems. The City will ensure that the development, use, and deployment of Al systems are evaluated for and compliant with all laws and regulations applicable to the City prior to use and will make documentation related to the use of Al systems available publicly. • Validity and Reliability: The City will work to ensure that Al systems perform reliably and consistently under the conditions of expected use, and that ongoing evaluation of system accuracy throughout the development and/or deployment lifecycle is managed, governed, and auditable. • Bias, Harm Reduction, and Equity: The City acknowledges that Al systems have the potential to perpetuate inequity and bias resulting in unintended and potentially harmful outcomes. The City will evaluate Al systems with a strong focus on equity, addressing potential impacts arising from data, human, or algorithmic bias. • Data Privacy: The City values data privacy and understands the importance of protecting personal data. The City strives to ensure that policies and standard operating procedures Page 9 of 132 reduce privacy risks, and are applied to Al systems throughout development, testing, deployment, and use. • Explainability and Interpretability: The City understands the importance of leveraging Al systems, models, and outputs that are easily interpreted and explained. The City will attempt to ensure all Al systems utilized, and their outputs, are communicated in clear language, representative of the context in which they are deployed. • Security and Resiliency: Securing our data, systems, and infrastructure is important to the City. The City will ensure Al systems are evaluated for resilience and can maintain confidentiality, integrity, and availability of data for critical City systems. The City will actively work to minimize security risks in alignment with governing policy and identified best practices. 281WWA 1. Acquisition and Usage of Al Technology 1.1. The City has a list of approved Al tools that can be used in accordance with individual department policy (see Appendix B). This list applies to all employees of the City and elected officials. 1.2. Consistent with the City's standards for Acquisition of Technology Resources, Department directors may request acquisition of Al tools (not listed in Appendix B) through the City's current IT request process. Departments may not acquire or use Al systems without following the approval process identified in this policy. 1.3. The IT Department shall review requests according to its current risk and impact methodology, which shall include specific review criteria for Al technology (see Port Orchard Acquisition of Al Review Guidelines). The IT Department will then bring the request to the Al Committee for approval or denial. 1.4. The City's standard for technology acquisition applies to all technology, including Open Source, Free to Use software, or SaaS (Software as a Service) tools. 1.5. If a technology that has already been approved for use in the City adds or incorporates Al capabilities, the IT Department shall immediately issue a technical restriction to suspend the use of those new Al capabilities pending formal review. The Al Committee will immediately be notified and will then evaluate the change to ensure it continues to follow this policy, according to its current risk and impact methodology (see Section 1.3). If the Al Committee approves the new Al capabilities, the IT Department may lift the technical restriction. 1.6. The City's IT Department shall revoke authorization for a technology that adds Al capabilities and/or restrict the use of those Al capabilities; if those Al capabilities present risks that cannot be effectively mitigated to comply with this policy or other City policies until the risks can be addressed. • The IT Department's responsibilities include the technical authority to implement immediate and mandatory suspension or restriction of new Al capabilities added to existing software, as required by Section 1.5. The IT Department is responsible for notifying the impacted department(s) of the suspension and/or restrictions. 2. Use of Al Outputs Page 10 of 132 2.1. Outputs of Al systems shall be reviewed by human(s) prior to each use in an official City capacity ("Human in the Loop" or HITL). 3. Attribution, Accountability, and Transparency of Authorship 3.1. Any outputs generated by an Al system, and used substantively in a final product, requires attribution to the relevant Al system used. • Departments shall interpret substantive use thresholds to be consistent with the principles outlined in this document, as well as relevant intellectual property laws. • All attributions should include the name of the Al system used plus an HITL assertion (which should include the department or group that reviewed/edited the content). **Example** "Some material in this brochure was generated using ChatGPT 4.0 and was reviewed for accuracy by a member of the Department of Human Resources before publication." 4. Reducing Bias and Harm 4.1. Al systems may produce outputs based on stereotypes or use data that is biased. Users will review and evaluate Al generated content and the designated HITL reviewer shall ensure that the output is accurate and free of discrimination and bias (HITL). 5. Data Privacy 5.1. Use of Al tools shall be consistent with the principles and standards described in the City's Data Privacy Policy, and Information Security Policy. 5.2. Unless suitable enterprise controls and data protection mitigations are in place, users shall not submit any of the following to Al systems outside of the City's control: • Data classified by the City's data classification guidelines as "Confidential" or "Highly Confidential" as listed in the Port Orchard Data Classification Guidelines. • Data that constitutes a Protected Data or Public Record that is exempt from disclosure under the Revised Code of Washington (RCW) (RCW 42.56, et al.) or other applicable laws. • Any other non public information such as: preliminary drafts, intra-agency memorandums, or sensitive operational data that is not officially approved for public disclosure. • Data that is not considered to be acceptable to disclose to the public 5.3. No City data or records, including inputs or prompts, are to be used for training or parameter tuning for Al models outside the City's control. Al technologies that cannot prevent City data or records from contributing to their language models may not be used. 6. Public Records & City Records Management 6.1. All records generated, used, or stored by Al vendors or solutions may be considered public records and must be disclosed upon request. Page 11 of 132 6.2. All Al solutions and/or vendors approved for City use shall be required to support retrieval and export of all prompts and outputs (either via exposed functionality or through vendor contract assurances). 6.3. Users who use Al tools are required to maintain, or be able to retrieve upon request, records of inputs, prompts, and outputs in a manner consistent with the City's records management and public disclosure policies and practices. EXCEPTIONS Any exceptions to this policy must be approved in advance through submission to the City Al Committee. POLICY COMPLIANCE Noncompliance may result in the Mayor, department directors, or their designees, imposing disciplinary action, up to and including termination of employment or vendor contract. RELATED STANDARDS AND POLICIES • 901 - City of Port Orchard IT Data Security Policy • 902 - City of Port Orchard IT Data Privacy Policy • City of Port Orchard Acquisition of Al Review Guidelines • City of Port Orchard Data Classification Guidelines • National Institute of Standards and Technology Artificial Intelligence Risk Management Framework (NIST Al 100-1) (In Draft Folder) • Revised Code of Washington (RCW): o Ethics In Public Service (RCW 42.52) o Public Records Act (RCW 42.56) o Preservation and Destruction of Public Records (RCW 40.14) Page 12 of 132 RESPONSIBILITIES This policy will be maintained through the City's Al Committee. Their responsibilities include creating and maintaining the Al risk and impact criteria, developing mandatory standards for the uniform interpretation and measurement of "Substantive Use" (Section 3.1), criteria by which to evaluate suggestions for amendments to Appendix B, (see City of Port Orchard Al Review and Guidelines Policy), including the creation of mandatory departmental standards for designating and training HITL reviewers. DOCUMENT CONTROL This policy shall be effective on TBD and shall be reviewed regularly, or as appropriate. POLICY REVIEW AND APPROVAL HISTORY Version Content Contributors Approval Date Reviewer(s): Noah Crocker -Finance Director, Rebecca Zick-Deputy Finance v 0.1 Initial Draft Director, Kori Pearson- Acct Asst III/IT Specialist, Alan Iwashita-POPD July 17, 2025 Deputy Chief, Sean Dunham -IT Manager, Jake Langston -IT Specialist, Caden Cucciardi- Asset Management Tech Reviewer(s): Noah Crocker -Finance Director, Rebecca Zick-Deputy Finance v 0.2 2"d Draft Director, Kori Pearson- Acct Asst III/IT Specialist, Alan Iwashita-POPD August 21,2025 Deputy Chief, Sean Dunham -IT Manager, Jake Langston -IT Specialist, Caden Cucciardi- Asset Management Tech Reviewer(s): Noah Crocker -Finance Director, Rebecca Zick-Deputy Finance Director, Kori Pearson- Acct Asst III/IT Specialist, Debbie Lund — HR Director, v 0.3 3rd Draft Sean Dunham -IT Manager, Jake Langston -IT Specialist, Caden Cucciardi- August 28,2025 Asset Management Tech, Jenine Floyd — Deputy City Clerk, Nick Bond — DCD Director Reviewer(s): Noah Crocker -Finance Director, Rebecca Zick-Deputy Finance v 0.4 41h Draft Director, Kori Pearson-Acct Asst III/IT Specialist, Sean Dunham -IT Manager, September 4, Jake Langston -IT Specialist, Caden Cucciardi- Asset Management Tech 2025 Reviewer(s): Noah Crocker -Finance Director, Rebecca Zick-Deputy Finance Director, Kori Pearson- Acct Asst III/IT Specialist, Debbie Lund—HR Director, November 20, v 0.5 51h Draft Sean Dunham -IT Manager, Jake Langston -IT Specialist, Caden Cucciardi- Asset Management Tech, Jenine Floyd —Deputy City Clerk, Nick Bond—DCD 2025 Director, Jim Fisk —Senior Planner, Alan Iwashita-Deputy Police Chief Reviewer(s): Noah Crocker -Finance Director, Kori Pearson- Acct Asst III/IT Specialist, Debbie Lund—HR Director, Sean Dunham -IT Manager, Jake v 0.6 6th Draft Langston -IT Specialist, Caden Cucciardi- Asset Management Tech, Jenine December 9, 2025 Floyd —Deputy City Clerk, Nick Bond—DCD Director, Jim Fisk —Senior Planner, Alan Iwashita-Deputy Police Chief Page 13 of 132 Reviewer(s): Noah Crocker -Finance Director, Rebecca Zick-Deputy Finance Final Director, Kori Pearson- Acct Asst III/IT Specialist, Debbie Lund—HR Director, December16, v 1.0 Version Sean Dunham -IT Manager, Jake Langston -IT Specialist, Caden Cucciardi- 2025 Asset Management Tech, Brandy Wallace -City Clerk Page 14 of 132 APPENDIX A: GENERAL Al DEFINITIONS Al (Artificial Intelligence): The capability of a machine or system to perform tasks that typically require human intelligence, such as generating text or audiovisual content, making or recommending decisions, analyzing data, or automating processes. Al Algorithm / Al Model: A set of programmed instructions that processes data to perform tasks, make decisions, or solve problems within an Al system. Al Assistant: An Al tool which is intended to aid a user in their day-to-day work by suggesting content, retrieving information, automating processes, and performing other similar tasks. Al Policy: A document that provides a framework for the effective and responsible use of Al systems within an organization. Al System: Any tool, software, process, and workflow, or other system which is based on Al technology, or which uses Al technology as a key component of that system. Al Tool: A piece of software which provides Al functionality and can be applied to a specific use case. Al Use Case: A specific task or purpose for which an Al tool is used or under consideration. Al User: An individual who is responsible for using, developing, purchasing, configuring, or maintaining Al systems. Al User Guide: A document which supplements an Al policy with more detailed guidance on how to implement the policy. Agentic Al: Autonomous Al systems that can act independently to achieve predefined goals, making decisions and taking actions without constant human oversight. Anonymization: A process by which data is altered so that it cannot be connected to specific individuals or organizations. Bias: Systematic tendencies that can exist within Al systems, often stemming from flawed data, algorithms, or design processes, that may lead to discriminatory or inaccurate outcomes affecting certain groups or individuals. Black Box Algorithm: An Al algorithm which produces decisions or other outputs with little or no mechanism for the user to analyze the logic which led to that result. Data Privacy: The protection of non-public information about a person or organization from disclosure without their consent. Data Output: Refers to the information produced by a computer or device as a result of processing input data. It can take various forms, including; Text, Images, Audio, Video, and more. Generative Al: Al systems which use algorithms to create text, audio, image, or video content based on some combination of user prompts and stored data and instructions. Human -in -the -Loop (HITL): A system design philosophy that requires human oversight and intervention in AI -driven processes. This ensures that final, critical decisions are made by a person, not the algorithm. Large Language Model (LLM): A type of generative Al that is trained on a massive amount of text data to understand, summarize, generate, and predict new human -like language. Machine Learning: A type of Al which uses algorithms to extract information from and recognize patterns in data, often used for forecasting, prediction, classification, or analysis. Open Data: Information derived from an organization's operations which is shared publicly to promote transparency or for use by external parties. Protected Data: Information generated or acquired in the course of an organization's operations which is not intended or approved for public disclosure. Page 15 of 132 Public Record: Records stemming from an organization's operations which must by law be shared upon request, whether or not it is actively published as open data. Page 16 of 132 APPENDIX B: Al TECHNOLOGY REGISTRY (Al Tools Currently Approved By Al Committee) Microsoft Copilot Page 17 of 132 ORCHARD City of Port Orchard 216 Prospect Street, Port Orchard, WA 98366 (360) 876-4407 • FAX (360) 895-9029 Agenda Staff Report Consent Agenda: 5.D. Adoption of a Resolution Declaring Certain Personal Property as Surplus and Authorizing its Disposition Thereof (Wallace) Meeting Date: April 28, 2026 Presenter: Brandy Wallace, City Clerk Summary and Background: Assets of the City that are no longer usable, are no longer of value to the City, or are surplus to City needs, may be removed from City ownership, sold, or in any other way disposed with a declaration of surplus by the City Council. Staff is asking the Council to surplus various personal property, such as weapons, a refrigerator, body cameras, Apple iPads, body armor, tasers and a ballistic vests, listed in Exhibit A, as surplus, as they are no longer useful to the City. The Finance Department has determined that the current asset value of the firearms is $200 each, the ballistic vests at $1,308, and the remaining items being of no value. Pursuant o RCW 35.94.040(2) these items were not acquired for public utility purposes, therefore a public hearing is not required. Although the City's internal asset value of the items may be undervalued, any monies from the sale of surplus property will be deposited into the Fund(s) which owned them. When disposal is to the general public through direct sale, sealed bid or auction, final determination of value shall be the highest responsible bid or offer. The City may transfer a surplus asset to another public agency upon written request and a determination that it is in the public interest. Staff will dispose of the items in a manner that reflects the best interest of the City. Relationship to Comprehensive Plan: N/A Recommendation: Staff is recommending adoption of a resolution declaring personal property as surplus and allowing for its disposition. Motion for Consideration: I move to adopt a resolution declaring personal property, such as Page 18 of 132 weapons, a refrigerator, body cameras, Apple iPads, body armor, tasers and ballistic vests, listed in Exhibit A, as surplus and authorizing its disposition. Has item been presented to Committee/Work Study? No If so, which one: N/A Fiscal Impact: Money received from the disposition of surplus items will be deposited into the Fund(s) of ownership. Alternatives: Do not adopt and provide further guidance. Attachments: 1. April 2026 Police items to surpus to council - Copy 2. Res_Declaring_Surplus Page 19 of 132 CITY OF PORT ORCHARD Finance Department 216 Prospect Street, Port Orchard, WA 98366 Voice: (36o) 876-4407 • Fax: (36o) 895-9029 www.cityofportorchard.us Date: 4/10/26 To: Brandy Wallace, City Clerk From: Gretchen Isaksson, Finance RE: Police equipment Summary: The police department items have reached the end of their useful life. These items will be exchanged for credit, returned, or destroyed. The estimated value of the firearms is $200.00 each. All other items on this list have a value of $0.00. They cannot be sold and will be destroyed. Asset Tag Serial # Tool Type Description Model 6015 FNCR022484 firearm Rifle FN15SBR 6040 2303178 suppressor suppressor HX-QD 6065 5267883 optic optic for firearm SR21-077989/SR21- 3203 081114 Body Armor body armor SR21-239697/SR21- 3207 239667 Body Armor body armor 5772 MP082075 Weapon Handgun M&P Smith & Wesson. 5387 70-01597 Weapon Rifle M77.308 5773 1041726 Weapon Rifle M-1 Carbine 5775 E6679131 Weapon Rifle Remington Rifle 5179 BA54509432 Large Equipment refrigerator 40 MM Less single launcher with 5415 FW22462 firearm Lethal Launcher expandable stock 5628 X400173TF TASER TASER 7 Taser 7 5869 X4000P9AX TASER TASER 7 Taser 7 5870 X4000P9A8 TASER TASER 7 Taser 7 Page 20 of 132 5871 X4000P99A TASER TASER 7 Taser 7 5872 X4000P94R TASER TASER 7 Taser 7 5873 X4000P91 N TASER TASER 7 Taser 7 5874 X4000P99H TASER TASER 7 Taser 7 5875 X4000PAOK TASER TASER 7 Taser 7 5877 X4000P971 TASER TASER 7 Taser 7 5878 X4000P99C TASER TASER 7 Taser 7 5879 X4000P95E TASER TASER 7 Taser 7 5880 X4000P9C4 TASER TASER 7 Taser 7 5881 X40000P9AW TASER TASER 7 Taser 7 5882 X4000P98V TASER TASER 7 Taser 7 5883 X4000P999 TASER TASER 7 Taser 7 5884 X4000P99E TASER TASER 7 Taser 7 5885 X4000P99Y TASER TASER 7 Taser 7 5886 X4000P95P TASER TASER 7 Taser 7 5888 X4000P99F TASER TASER 7 Taser 7 5889 X4000P774 TASER TASER 7 Taser 7 5890 X4000P77C TASER TASER 7 Taser 7 5891 X4000P778 TASER TASER 7 Taser 7 5892 X4000P6VF TASER TASER 7 Taser 7 5893 X4000P769 TASER TASER 7 Taser 7 5894 X4000P6WW TASER TASER 7 Taser 7 6091 X4001 F1 R4 TASER TASER 7 Taser 7 6134 4001 M10Y TASER TASER 7 Taser 7 6135 4001 M117 TASER TASER 7 Taser 7 6136 X4001 M10D TASER TASER 7 Taser 7 3148 X60A6810J body camera BODY CAMERA Axon Body 3 3149 X60A6613J body camera BODY CAMERA Axon Body 3 3152 X60A6631J body camera BODY CAMERA Axon Body 3 3154 X60A6747K body camera BODY CAMERA Axon Body 3 3155 X60A6776J body camera BODY CAMERA Axon Body 3 3156 X60A6729J body camera BODY CAMERA Axon Body 3 3157 X60A6848J body camera BODY CAMERA Axon Body 3 3158 X60A6784J body camera BODY CAMERA Axon Body 3 3159 X60A6374L body camera BODY CAMERA Axon Body 3 3160 X60A6527L body camera BODY CAMERA Axon Body 3 3161 X60A6690J body camera BODY CAMERA Axon Body 3 3162 X60A6135N body camera BODY CAMERA Axon Body 3 3163 X60A6030R body camera BODY CAMERA Axon Body 3 3164 X60A6594J body camera BODY CAMERA Axon Body 3 3165 X60A6196K body camera BODY CAMERA Axon Body 3 3166 X60A6493M body camera BODY CAMERA Axon Body 3 3167 60A6666J body camera BODY CAMERA Axon Body 3 Page 21 of 132 3168 X60A6675J body camera BODY CAMERA Axon Body 3 3169 X60A6030K body camera BODY CAMERA Axon Body 3 3170 X60A6626J body camera BODY CAMERA Axon Body 3 3171 X60A6967J body camera BODY CAMERA Axon Body 3 3172 X60A6362E body camera BODY CAMERA Axon Body 3 3173 X60A6039K body camera BODY CAMERA Axon Body 3 3174 X60A6070N body camera BODY CAMERA Axon Body 3 3175 X60A6746K body camera BODY CAMERA Axon Body 3 3180 X60AY3572 body camera BODY CAMERA Axon Body 3 3193 X60AC574E body camera BODY CAMERA Axon Body 3 3194 X60AC076G body camera BODY CAMERA Axon Body 3 3195 X60AC493F body camera BODY CAMERA Axon Body 3 MEMORANDUM TO: Gretchen Isaksson FROM: SUBJECT: Matt Brown, Chief of Police Surplus items -- DATE: March 16, 2026 The police department would like to surplus the items on the attached spreadsheet. The firearms have reached the end of their useful life. The intent is to trade them to a licensed dealer in exchange for credit. This credit will be used to purchase updated and modern firearms and accessories. The Axon tasers and body -cameras have reached the end of their useful life; the firmware is no longer supported, and the department currently deploys more modern technology under contract with Axon. These items will either be returned to Axon or destroyed. The rifle, optic, and suppressor were stolen in 2024 and not recovered. The investigation was conducted by the Tacoma Police Department under case #24-301-0996. All other items have either expired or reached the end of their useful life and will be destroyed. Page 22 of 132 PORT ORCHARD POLICE DEPARTMENT �^ SERVICE • HONOR • I.rrEGP-= -NW MEMORANDUM TO: Gretchen lsaksson FROM: Matt Brown, Chief of Police SUBJECT: Surplus items DATE: March 30, 2026 The police department would like to surplus the following items: 1. Apple iPad Mini 5 h generation a. Asset tag — 5383 b_ Serial number - DN PD720ALM93 2. Apple Wad Mini 5 h generation a. Asset tag — 5384 b. Serial number - DMPD913HLM93 The de-ices have reached the end of their useful life, and the intent is to sell them. Page 23 of 132 N PORT ORCFL-�RD POLICE DEP_-',RT-_�IENT $FRCI(T • HoNOR • I`: 11 -,1l17, MEMORANDUM T0: Gretchen Isaksson, ER&R Program Manager FROM: Alan Iwashita, Deputy Chief 1UB1E(T: ER&R— %uiplusBallisticVest DATE: Apn18.2026 BACKGROUND: The Port Orchard Police Department (POPD) purchases new ballistic vests for all new police officer hires, as required safety equipment. These vests are custom -cut for the individual officers to ensure proper fit and protection. Former POPD student officer Bobby Andrews was unsuccessful in completing his field training and returned his department -issued equipment, including his ballistic vest. His vest is now being stored at POPD and has a five-year expiration date, expiring in 2030. Due to the vest's custom nature, there are no POPD officers for whom the vest currently fits. The Suquamish Tribal Police Department is in the process of hiring Bobby Andrews and has inquired about purchasing a ballistic vest from POPD. RECOMMENDATION: Staff recommends the surplus of the ballistic vest for the purpose of selling it to the Suquamish Tribal Police Department to recoup the purchase costs. The purchase cost for the Suquamish Tribal Police Department is recommended at a 20% depreciation, or $ 1,308.00. This number is based on the item's approximate one-year use during the five-year expiration period. while employed at POPD. 1. ER&R#3293—Safariland S/N: SR25-134581(front panel) - SR25-133700 (rear panel) Cost: $1635.00 Paee 1 of I Page 24 of 132 RESOLUTION NO. -26 A RESOLUTION OF THE CITY OF PORT ORCHARD, WASHINGTON, DECLARING CERTAIN PERSONAL PROPERTY AS SURPLUS AND AUTHORIZING ITS DISPOSITION THEREOF. WHEREAS, certain personal property owned by the Police department of the City have become surplus to the needs of the City; and WHEREAS, the City Council desires to surplus various items as outlined in Exhibit A, in the best interest of the City as they are no longer useful; and WHEREAS, the City Council has determined that the current asset value of the firearms to be $200 each, the ballistic vests at $1,308, and the remaining items being of no value; and WHEREAS, pursuant to RCW 35.94.040(2) these items were not acquired for public utility purposes, therefore a public hearing is not required; and WHEREAS, the City Council has, pursuant to the requirements of POMC 1.30.020, considered the possible future requirements of the City, the present value of the personal property, the likelihood of locating a buyer, possible intergovernmental cooperation, and the general welfare of the citizens of Port Orchard in determining whether it is in the best interest of the City to dispose of such personal property; now, therefore, THE CITY COUNCIL OF THE CITY OF PORT ORCHARD, WASHINGTON, HEREBY RESOLVES AS FOLLOWS: THAT: City Council desires to dispose of various personal property, such as various firearms, refrigerator, body cameras, Apple iPads, body armors, tasers and ballistic vests, listed in Exhibit A, as surplus. FURHTER THAT: Staff is instructed to dispose the items in a manner that reflects the best interest of the City. 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 281h day of April 2026. Robert Putaansuu, Mayor ATTEST: Brandy Wallace, MMC, City Clerk Page 25 of 132 City of Port Orchard ORCHARD 216 Prospect Street, Port Orchard, WA 98366 (360) 876-4407 • FAX (360) 895-9029 Agenda Staff Report Consent Agenda: 5.E. Approval of Special Event Road Closure: South Kitsap Graduation Car Cruise (Wallace) Meeting Date: April 28, 2026 Presenter: Brandy Wallace, City Clerk Summary and Background: Staff received a special event application for the Class of 2026 Graduation Car Cruise, scheduled for Friday, June 5, 2026. The application state's the following: EVENT: Class of 2026 Graduation Car Cruise TYPE: Car Cruise DATE: Friday, June 5, 2026 TIME: Setup starts at 5 pm, Cruise will start at 6 pm until approximately 9 pm LOCATION: Downtown Port Orchard Bay Street/SR166, from Harrison Ave to Port Orchard Blvd CLOSURE(S): Bay Street/SR166 from Harrison to Port Orchard Blvd, Orchard Avenue; Port Street; Frederick Street from Bay Street/SR166 to waterfront; Sidney Avenue from Bay Street /SR166 to waterfront, Port Orchard Blvd, Robert Geiger, Frederick Street from Bay St/SR166 to Prospect Street, Parts of Kitsap Street and Cline Avenue and parking lots 1, 2, and 8. The required notice, pursuant to POMC 5.94.050(3), allowing citizens to provide written comments regarding how allowing the special event will impact their property, business, or quality of life has been published and to -date, the City has received no written concerns regarding this event taking place. Staff and outside agencies have reviewed the application and are working towards ensuring safety measures and traffic control are in place. The applicant is requesting closure of Bay Street/SR166 and several side streets. They are working with WSDOT for their approval. In the meantime, pursuant to Port Orchard Municipal Code 5.94.050(4), staff shall bring forward the special event application to the City council for approval when the event requires a street or highway closure. Staff is in support of the highway and road closures as presented and is continuing to work on the final details of the event with the applicant, ensuring the highway and street closures are to the safety and traffic control standards outlined in City, State, and Federal codes. Page 26 of 132 Relationship to Comprehensive Plan: 6 - Economic Development Recommendation: Staff recommends the approval of the road closures, as presented. Motion for Consideration: I move to approve teh road closures for the Class of 2026 South Kitsap Graduation Car Cruise event, scheduled for Friday, June 5, 2026, as presented. Has item been presented to Committee/Work Study? No If so, which one: N/A Fiscal Impact: Revenue of $100 from applicant for a processing fee; General Fund. Possible staff and equipment cost associated with closing the road; General Fund. Alternatives: Deny the road closures and provide direction to staff. Attachments: 1. TCP - Grad Car Cruise 2. 2026 Grad Car Cruise Special Event App Page 27 of 132 NOTES: 1_ Green area is the closed off section 2. Detour Route at Port Orchard Blvd & Bay St needs to close off right lane for parade participants. 3. Bring additional channelizing devices. PCMS 1 2 SPECIAL USE DETOUR EVENT ROUTE AN EAD 2.0 SEC 2.0 SEC N A Supply List 9 x Road Closed Ahead 9 x Detour Ahead 16 x Road Closed Type III 9 x Detour Right 7 x Detour Left 1 x No Left Turn 2 x No Right Turn 1 x Truck Route Forward 2 x Truck Route Left 1 x Truck Route Right 2 x PCMS 31 x Channelizing Device SPACING (feet) MPH TAPER TANGENT 50 40 80 35145 30 60 SIGN SPACING s X (1) RURAL ROADS 45 155 MPH 500't i!f@IR1Y TAPER LENGTH = L (feet) RURAL ROADS 8 URBAN ARTERIALS 35 140 MPH 350't LAPS Posted Speed (mph) RURAL ROADS 8 URBAN ARTERIALS 25 130 MPH 200't (2) WIDTH RESIDENTAL 8 BUSINESS DISTRICTS (iK 26 30 35 40 45 50 55 60 65 70 URBAN STREETS 25 MPH OR LESS 100't (2) 10 105 150 206 Zi0 450 500 (1) ALL SPACING MAY BE ADJUSTED TO ACCOMMODATE INTERCHANGE 11 115 165 226 296 495 550 RAMPS, AT -GRADE INTERSECTIONS AND DRNEWAYS. (2) THIS SPACING MAY BE REDUCED IN URBAN AREAS TO FIT 12 126 1e0 245 32e SW 600 ROADWAY CONDITIONS. CHARD . I 2025 SKHS Grad Parade - Overview Dra%%,n by: Chris F.sguerra Dates June 6, 2025 Page 28 of 132 Supply List 9 x Road Closed Ahead 9 x Detour Ahead 16 x Road Closed Type III 9 x Detour Right 7 x Detour Left 1 x No Left Turn �. 2 x No Right Turn 1 x Truck Route Forward IF 2 x Truck Route Left �n • , , `� ��-_ .�+'. .yy 1 x Truck Route Right �.-0 2 x PCMS � - �. - r j'• C[GYF� ' ". -~' �' ? .T rr 31x ChannelizingDevice �� rr - ,_;_: ' i :,GrA CLOSEDLC ED AC *� j," ... p- y :. a�d''o.`,, .�_,,,,. �-y�.. ,r �•.v-- �.. ifs ",�' _411EJ10 035070 i / � __ - � ;• � .KR � ^_ rt.� 4 + nn hn �•, ��:?� �+M�tin 9 ♦ �_' _ ' NOTES: 1 Green area is the closed off section 2. Detour Route at Port Orchard Blvd & Bay St needs to close off right lane for parade participants, 3. Bring additional channelizing devices. ORCHARD. I JDra«m by: Chris Esguerra 2025 SKHS Grad Parade -Downtown Date: June 6, 2025 N Page 29 of 132 • ';, 1 _ d >� :, •' ��y�� Ire•>o ��1+ f�` 'if0Y4�♦��� O � i 2 t PP v Su List 9 x Road Closed Ahead i• _ 9 x Detour Ahead •s nil a' ,:�L-. �° 16 x Road Closed Type III •_ - 9 x Detour Right 7 x Detour Left •� �! �' 1 x No Left Turn 0 3S01 2 x No Right Turn 1 x Truck Route Forward 2 x Truck Route Left 1 x Truck Route Right �.• - ';•+°;•/nz ; 2 x PCMS �•. �; '"> '}� >` ;� 31 x Channelizing Device d... • 1 w ����+fir+3 � : 4�� •' ,� SIGN SPACING = X (1) RURAL ROADS 45 / 55 MPH 500'± �� r R t • RURAL ROADS & URBAN ARTERIALS 35 / 40 MPH 350't f, ' x, , ;' ♦ u a+ RURAL ROADS & URBAN ARTERIALS 25 / 30 MPH 200'± (2) r ♦ i '''' ? Y`;y' RESIDENTAL & BUSINESS DISTRICTS URBAN STREETS 25 MPH OR LESS 100'± (2) ~ (1) ALL SPACING MAY BE ADJUSTED TO ACCOMMODATE INTERCHANGE .• .' `� a RAMPS, AT -GRADE INTERSECTIONS AND DRIVEWAYS. 'a -'~► (2)THIS SPACING MAY BE REDUCED IN URBAN AREAS TO FIT ROADWAY CONDITIONS. ,, 2025 SKHS Grad Parade - Bay St/PO Blvd Drawn b)�. Chris Fs, Serra Date: June 6, 2025 Page 30 of 132 N T \'•� Vf Oiso Supply List 9 x Road Closed Ahead y 'z + 9 x Detour Ahead b fr °'' 16 x Road Closed Type III 9 x Detour Right ROAD "r �'�s E 7 x Detour Left _ x CLOSED A i x No Left Turn 2 x No Right Turn ;o� � , '° '?'; - 1 x Truck Route Forward f f f f f i f f f Y .30 - 2 x Truck Route Left ,�� 1 x Truck Route Right 2 x PCMS OUR r ti 31 x Channelizing Device EAD- °-�A T SIGN SPACING = X (1) RURAL ROADS 45 / 55 MPH 500't RURAL ROADS & URBAN ARTERIALS 35 i 40 MPH 350't RURAL ROADS & URBAN ARTERIALS 25 130 MPH 200'± (2) RESIDENTAL & BUSINESS DISTRICTS •T, '�� URBAN STREETS 25 fv1PH OR L'cSS 'ICO' (1) ALL SPACING MAY BE ADJUSTED TO ACCOMMODATE INTERCHANGE '•k't RAMPS, AT -GRADE INTERSECTIONS AND DRIVEWAYS. THIS SPACING MAY BE REDUCED t ;, , : (2) IN URBAN AREAS TO FIT ` 4;T ROADWAY CONDITIONS. �o-z� Dn��•n by Chris Esguerra ORCHARD . 'I 2025 SKHS Grad Parade - Tremont/PO Blvd Date: Lune 6, 2025 Page 31 of 132 nCHAD — SPECIAL EVENT PERMIT APPLICATION (PORT ORCHARD MUNICIPAL CODE 5.94 AND 5.96 and Resolution N STANDARD PROCESSING FEE: $100.00 Event Information KECEIVED MAR 17 2()26 CITY OF PORT ORCHARD IFRWS OFFICE Event Name: Type of Event: Festival Walk/Run Parade Vendor Fair Block Party 9ther: i li Event or Organization Website: Concert Description ofevent�lj ra� cAe C.rals6 r �ll� Skus (�1�. �jt/L.'��✓� of l'Z o I Event Date and Time Event Dates: Indicate Dates/Times OPEN to attendees Hours: Open until closing each day Expected Daily Attendance: Day 1 Day: _ Day 2 Day: Datjako �Z I Start Time: End Time: GL1 500— Date: Start Time: End Time: Day 3 Day: Date: Start Time: End Time: Day 4 Day: Date: Start Time: End Time: Day 5 Day: Date: Start Time: End Time: Event Setup Starts: Event Take Down Complete: Total Start Day/Date: j 5 u I Start Time: �� End 0 /Date: / �D r/ End Time: 9 � � Attendance: (add all rows and columns) Event Location: f� I Describe the location that your event will be located at. Include street names and/or parks. Attached required map. 3co City of Port Orchard I Special Event Application Revised 1211212023 Page 1 of 13 Page 32 of 132 Applicant Information* Sponsoring Organization Name: SK HYPE SQUAD - NON PROFIT Do you have an active City Business License? o What is your UBI number? 605342114 Applicant Contact Name: KIMBERLY SHAW & ERIC WORDEN Title: CO-PRESIDEN fS Physical Address: 360 FLOWER MEADOWS ST Mailing Address: (if different from street address) City: PORT ORCHARD State: WA Zip: 98366 1 City: State: Zip: Phone: 360 710-8025 Alternate Phone360 620-8862 Email: SKHYPESOUAD@GMAII_.COM *Please note the applicant information provided may be shared for inquires made on event details Admission Fees:., Does your event require a paid fee for participants and/or spectators? I Yes I XjNo Does your event require minimum or suggested donation for participants and/or spectators? Admission/participation fee/ suggest donations amount(s): Use of City Streets and/or State Highway STATE HIGHWAY: Will this event require closure of a State Highway (most common is Bay Street/SR166)? FlYes F-1No If yes, which highway: l X] Bay Street/SR 166 I 1 Sedgwick Road I1 Mile Hill Drive For State Highway Closures, the sponsoring organization must submit the application to the city at least 120 calendar days before the event date. Upon city approval of the event, the sponsoring organization shall seek permission from the Washington State Department of Transportation (WSDOT) by completing an online application. Once permission is granted from WSDOT, a copy of the letter of Acknowledgment or an Agreement will need to be provided to the city 45 days prior to the event. WSDOT's online application is located at-1411psliAm yvyVoU'ol.wWgcPY/ CITY PROPERTY/STREETS (Right-of-way . Port orchard Municipal Code 5.94.020(7) states "Right-of-way (ROW)" means any road, public parking lot, city street, highway, boulevard or place in the city open as a matter of right to public travel and shall include arterials, neighborhood streets, alleys, bicycle paths and pedestrian ways; including streets or portions thereof which are designated as portions of the state highway system." City of Port Orchard I Special Event Application Revised 1211212023 Page 2 of 13 Page 33 of 132 Will this event require closure of any of the below public property/ right-of-way? ©Yes F]No If yes, indicate what type of public property is requested to be closed and the location (select all that apply): A. City Park(s): w,m Zee Park ❑M -Coi mick Village ❑Central Park Givens Park Park ❑Paul Powers Park Etta Turner Park ❑ Rockwell Park B. Parking Lot(s): Lot 2, which lies between Frederick Street and Sidney Avenue, north of Bay Street. Lot 5: all parking on City Hall property in front of the Police department 9Lot 8: employee parking lot east of City Hall adjacent to Prospect Alley which is between Kitsap Street and Prospect Street. C. Sidewalk(s) describe the location of the sidewalk being closed: 0 41 al W t%\L' 0) A BOG �Cvi D. Street(s): please fill out the "Details of Closure" section below and provide a traffic control plan of the area impacted. 1) Details of Closure(s): Street Name: Between And Start Date: (cross street): (cross street): Example Kitsap Street Division Street 1 00/00/0000 Start Time: I End Date: I End Time: 00:00 am 00/00/0000 00:00 pm Additional details: (attach additional pages as needed for more streets and/or more details about use.) 2) Traffic Control Plan: A traffic control plan is required for all street and highway closures and must be submitted with this application. See example Site Plan. The following is required to be on the plan(s): © Detour route(s) Pedestrian and Bicycle routes ©Volunteers: how many, where, how long, etc. signs/Barriers: How many, what kind of signs, were will they be located, who is putting them up, who will be taking them down, etc. City of Port Orchard I Special Event Application Revised 1211212023 Page 3 of 13 Page 34 of 132 LfJ certified flaggers; how many will there be, where will they be stationed, what time will they be there, what time will they be gone, etc. Should your event require traffic control and certified flaggers to manage the road closures, provide the following information: Name of the Traffic Control company: SOlJNI) PACIFIC CONSTRUCTION Point of Contact Name: Phone: 253 514-6226 TRISSA WHITE Alternate Phone: I Email: 'RI>SA(�SOLJNDPACII=1GC;ONS-f-.COM Public Works and Police Services Special events may require the use of public works and police officers for public safety. This may result in additional costs to the organizer. The organizer will be notified if coordination with the Public Works and Police is required. The following are services that will be required to be charged to the organizer: Public Works: Police: Setting up street closure signs Setting up command center on event site Setting up barricades Officers providing security Please provide who the invoice should be sent to Name company: Name: Address: Phone: Alternate Phone: Email: Parking Impacts Have parking impacts been coordinated with neighbors (residential/business)? u Yes a No NSA If yes, how will parking be provided for participants and visitors (including handicapped parking)? You may submit a map to show the available parking for this event in place of providing a written description below. City of Port Orchard I special Event Application Revised 12/5/2023 Page 4 of 13 Page 35 of 132 *The City of Port Orchard cannot grant permission for the use of private property for parking. It is the event sponsor's responsibility to contact property owner (business, residential, schools) if you want permission to park on their property. Neighborhood — Business Notification The city clerk's office shall notify the public of each special event proposed to allow citizens to provide written comments regarding how allowing the special event will impact their property, business or quality of life. The city clerk will consider any information provided and may deny the special event permit application if a showing is made of severe financial impact or other undue hardship on a citizen's property, business or quality of life. Alcohol Sales/Services The sale, service and consumption of alcoholic beverages are subject to Washington State Liquor & Cannabis Board (WSLCB) regulations, licensing, and permit requirements. WSLCB Special Occasion and other Licenses and related fees for alcohol sales/service at events are not included in the City's Special Event Permit. Visit the WSLCB website, https://Icb.wa.gov/ for additional information and to apply for the appropriate license / Permit. Will alcohol be sold or consumed at your event? []Yes* 5JNo *If yes, you must contact the Washington State Liquor and Cannabis Board for a special liquor license. Food Sales/Service You will need to reach out to the Kitsap Public Health District as they may require a temporary food establishment permit. Visit their website at https.Ilkitsoppublichealth.oralFoodSafetylfood vendors.php or call (360) 728-2235 for information. Will your event have any food service and/or sales?❑Yes ©No If yes, how many: Will your event have professional catering? Des ©No If yes, how many: Will your event have food truck(s)? Des FANo If yes, how many. _ Washington State Fire Code section 105.6.30 Mobile food preparation vehicles is defined as: An operational permit is required for mobile food preparation vehicles equipped with appliances that produce smoke or grease -laden vapors or utilize LP -gas systems or CNG systems. Contact Community Development. • Food Truck Safety Handout • Mobile Food Preparation Vehicle Permit Application Garbage and Recycling Collection Stations: How many bins are you providing as collection containers at your event? Recycle ICJ Garbage 'v City of Port Orchard I Special Event Application Revised 121512023 Page 5 of 13 Page 36 of 132 Will you manage your own recycling and garbage collection or will it be managed by a vendor? Self-Haulf:]Yes ENo List vendor/company, If applicable: _ Detail your plan for waste management within the event area and surrounding neighborhood; THERE IS NO WASTE ANTICIPATED FOR Ti iIS EVENT. LOCAL BUSINESSES WILL. BE PAT-RONIZED. CITY GARBAGE CANS ARE AVAILABLE_ FOR INCIDENTAL, REFUSE, Restrooms Prove the number of restrooms that will be available to the public for your event males _Females Handicap Below is an example of the estimated amounts needed per number of users recommended in the FEMA Special Events Contingency Planning: Job Aids Manual March 2005 (updated May 2010). SEE SITE PLAN Toilet facilities for events where alrnhni is not a.,ailahia Males Females Patrons Toilets Urinals Sinks Toilets Sinks <500 1 2 2 6 2 <1,000 2 4 4 9 4 <2,000 4 1 8 6 12 6 <3,000 6 15 10 18 10 <5,000 8 25 17 30 17 Toilet facilities for events where alcohol Is availahle Males Females Patrons Toilets Urinals Sinks Toilets Sinks <500 3 8 2 13 2 <1,000 5 10 4 7 16 18 4 <2,000 9 15 7 <3,000 10 20 1 14 1 22 14 <5,000 12 30 1 20 1 40 20 L{rn V1 2ScnIs If t�)(CA V G - D j I e 1 u �►��rt,Q <4 z sin �s b - � o0 [a wict, Z- i) I ('uk City of Port Orchard I Special Event Application Revised 121512023 Page 6 of 13 Page 37 of 132 These figures may be reduced for shorter duration events as follows: Duration of event Quantity required More than 8 hours 100% 6-8 hours 80% 4-6 hours 75% Less than 4 hours 70% Master Multi -Vendor Event License Will your event have vendors? Yes [&o If so, how many anticipated exhibitors/vendors will be at your event? If so, will they be selling merchandise and/ or food? ❑Yes �No — If you indicated Yes, please see the Food section on Page 4 of this application. POMC 5.96, if your event has two or more vendors engaged in public property vending, you are required to have a Master Multi - Vendor Event License (MMVEL). The MMVEL fee is $15.00 per day or $200 per month. POMC 5.96.020(3)(a) states the sponsor of the master event shall provide a list of participating vendors, their business names, their addresses and their State Tax Revenue Identification Numbers to the city clerk within three working days after the first day of the operation. • No public vending is allowed within twenty-five (25) feet of any municipal building, monument, or fountain, OR within ten (10) feet of intersection sidewalks. • Vending devices must be removed from vending sites daily between the hours of 10:00 p.m. and 6:00 a.m. • Vending devices and vending sites must always be clean and orderly. The vendor must furnish a suitable refuse container and is responsible for the daily disposal of refuse deposited therein. Refuse containers must be removed each day along with vending devices. • Vendors may engage in public property vending only in the location specified in the public property license. The location shall be deemed the vending site. • Utility service connections are not permitted, except electrical when provided with written permission from the adjacent property owner. Electrical lines are not allowed overhead or lying in the pedestrian portion of the sidewalk. • No mechanical audio or noisemaking devices are allowed, and no hawking is allowed. • A vinyl or canvas umbrella may be added to the vending device, but its open diameter may not exceed eight and one- half feet. Any part of the umbrella must have a minimum of seven feet of vertical clearance to the area on which the vending device stands. • Individual vendor advertising signs may be placed only upon the vending device. Temporary master event advertising signs may be placed as approved by the city engineer; and • No conduct shall be permitted which violates any other section of the Port Orchard Municipal Code. Tents Does your event include a tent or membrane structure? Yes 1;4 No Not Applicable If yes, what is the tent size: Does the tent have sides? Yes No �N/A May be required to obtain a permit per POMC 20.200.016.Pplease contact Community Development (360) 874-5533. City of Port Orchard I Special Event Application Revised 121512023 Page 7 of 13 Page 38 of 132 Event Signage Are you planning to put up temporary signs? I IYes EINo POW 20.132.290 "Temporary sign" (which may include special event sign) means any sign that is used temporarily and is not permanently mounted, painted or otherwise affixed, excluding portable signs as defined by this chapter, including any poster, banner, placard, stake sign or sign not placed in the ground with concrete or other means to provide permanent support, stability and rot prevention. Temporary signs may only be made of nondurable materials including, but not limited to, paper, corrugated board, flexible, bendable or foldable plastics, foamcore board, vinyl canvas or vinyl mesh products of less than 20- ounce fabric, vinyl canvas and vinyl mesh products without polymeric plasticizers and signs painted or drawn with water soluble paints or chalks. Signs made of any other materials shall be considered permanent and are subject to the permanent sign regulations of this chapter. Please contact the Community Development Department at (360) B74-5533 if you have questions or if you need to apply for a sign permit. Amplified Sound Does your event have any amplified sound? Yes 1 No Indicate dates/time of any amplified sound below: Dav Date: Day: Day: FRIDAY 1 06/06/2025 Date: Date: Start Time: End Time: 9PM 6PM Start Start Time: End Time: End Time: Describe what sound will be amplified, and at what hours (e.g., 7:00am announcements, 8:00am background music, etc.): MUSIC AND DJ, PA / DECK AT PATHWAY BOOK s-roPE Describe what equipment will be used for amplified sound, and at what locations (show in maps): PA / MUSIC / SPEAKERS Describe schematics and direction of amplified sound (show in maps, attach supporting documents as needed SEE SITE PLAN Noise levels generated shall not be in excess of allowable levels, consistent with POW 9,24.050. For more information please contact the Port Orchard Police Department (360) 876-1700. Site Map A site map is required to be submitted to include the following when applicable • Vendors • Beer Garden • Signage • Canopies/Tents • Public entrances and exits • Road closures and detours • Traffic patterns with directional arrows/routes • Fire Lanes City of Port Orchard I special Event Application Revised 12/5/2023 Page 8 of 13 Page 39 of 132 • Surrounding street names • Garbage/Recycling • Barricades • Food trucks • Generators • Cooking areas • First Aid • Parking • Restrooms • Wash stations • If event is a run/walk, list start and stop locations and water/rest stations: Insurance The sponsoring organization must submit proof of liability insurance naming the City of Port Orchard as an additional insurec by endorsement. Coverage shall remain in force throughout the event. The policy shall have primary coverage limits of at least the following: $1,000,000 Liability and $1,000,000 Bodily Injury Additional insurance may be required where alcohol is bing served. Special Event Insurance for events held at city -owned facilities can be purchased at eventinsure.hubinternational.com/. Release I certify that the event for which this permit is to be used will not be in violation of any City of Port Orchard ordinance. By applying for this special event permit, the organization or entity obtaining such permit agrees to defend, indemnify, and hold harmless the City, its officers, officials, employees and volunteers from all claims, injuries, damages, losses, or suits, including attorney fees and costs, arising out of or in conjunction with the activities or operations performed by the applicant or on the applicant's behalf resulting from the issuance of this permit, except for injuries and damages caused by the sole negligence of the City. The information on this form is considered a public record and is subject to public disclosure laws in Chapter 42.56 RCW. I, as the President or Chair of my organization, agree to the terms and conditions listed above. Kly6t✓IN 5M►4titl f ER« Woldtvi Sign iture of President/Chair of Organization Print Name Date 311(P1201-t. FOR CITY CLERK'S OFFICE USE ONLY Date Special Event Fee Paid ($100): Receipt No.: Insurance Certificate(s) Received: City of Port Orchard I Special Event Application Revised 51512025 Page 9 of 13 Page 40 of 132 Does event require a Master Multi -Vendor License: ❑ Yes ❑ No If Yes: ❑ $15/day fee ❑ $200/monthly fee Number of days: Total Amount: Date paid: - Receipt No.: Department/Agency Routing: ❑ Police ❑ Public Works ❑ Finance ❑ Community Development ❑ Kitsap Transit ❑ Clerk's Office ❑ Health District Public Notice Dates: Council Action Date: ORCHARD SPECIAL EVENT PERMIT APPLICATION INSTRUCTIONS (PORT ORCHARD MUNICIPAL CODE 5.94 AND 5.96) Thank you for your interest in holding a special event in the City of Port Orchard. This application contains information you need to apply for a special event permit. Included is a checklist designed to help you when submitting this application, and tips for a successful event. What are the fees associated with a special event? There is a $50 non-refundable administrative fee to process each application. If two or more vendors are engaged in public property vending, you are required to have a master multi -vendor event license. The fee is $15 per event day. Closure of Lots 3 and 4 commonly known as waterfront parking, during a weekday and excluding federal holidays, the applicant shall compensate the city for lost revenue for use of the parking lots. When should the special event application be submitted to the City? • The application shall be filed with the city clerk's office no less than 90 calendar days, nor more than one calendar year, before the date when the proposed special event is to take place. A Special Event Reservation Form can be submitted by February 1' of each year to reserve your proposed special event, if the event was r`hqjld Pp thettspmei day and kppjt+on as the previous.year. Please note that it provide no guirantee that your �rerrtvnrilrb�'dpploved. �•� 1 1' , �'� :�i 1 f" , �• • If your event requires any road closyres, the application must be submitted at least 120 calendar days before What is a special event? A special event is defined in the Port Orchard Municipal Code (POMC) as "any organized formation of an activity proposed to occur that affects the public's ordinary use of rights -of -way or public parks, including but not limited to runs, street dances, block parties and parades". Can 1 hold a special event in a City owned park? City of Port Orchard I Special Event Application Revised 121512023 Page 10 of 13 Page 41 of 132 City parks are available on a first -come, first -served basis. The City does not reserve parks for events. However, POMC 9.60'Park Rules' states in part that no person can solicit, or offer for sale any article or thing, or use any stand, cart or vehicle for the sale or display without authorization from the City Council. In addition, no animals are allowed in City parks other than dogs or cats. What types of events are considered special events? • Parades • Community awareness events • Runs/Walks • Outdoor movies • Festivals • Street dances • Block Parties • Other similar event • Car Shows • Vendor Fairs • Concerts ORCNARD 7___ What if my event is outside Port Orchard Citv limits or on oronerty not owned by the Citv? If your event is outside Port Orchard city limits, you will need to contact Kitsap County at 360.337.5777. If your event is on private property, you will need to contact the property owner and Port Orchard Department of Community Development to learn if the event triggers permitting requirements under the adopted fire code. If your event is utilizing the property of the Port of Bremerton, you will need to contact the Port of Bremerton. If your event is utilizing both City property and property that is NOT owned/leased by the City, written approval is required by the owner/manager of the private property and must be included with your application. Can l ask for road closures or detours for a 5K run/walk or similar event If the event is a parade or run, the following information and/or documentation are required: A traffic control plan. Provide evidence that the appropriate number of Certified flaggers described in the traffic control plan will be provided. What is the special event application process? • Submit to the City Clerk's office a Special Event Reservation form (if applicable). • Submit the completed application to the City Clerk's office with required fee(s), 90 days before the event. If the application and/or additional documents are not completed or submitted, the application will not be accepted until fully completed. • The City will forward the event application to other -departments and agencies for review and comment; o If the event requires closure of City streets, the application is also required to be brought before the City Council during a regular City Council meeting. The applicant will be notified of the date of the meeting and the City Council's decision. / If the event requires closure of a State Highway, POMC 5.94.030(4) states a completed application shall be filed no less than 120 days before the proposed special event is to take place. POMC 5.94.040(13) states upon council approval, the applicant must provide to the City Clerk's office, no more than 45 days after submitting the application, at least one of the following three documents: (a) event agreement with WSDOT; (b) letter of acknowledgement from WSDOT; or (c) written proof that the event organizer has submitted the completed application to WSDOT. City of Port Orchard I Special Event Application Revised 121512023 Page 11 of 13 Page 42 of 132 o If the event requires closure of City streets, a traffic control plan may be required. o If your event is utilizing the downtown parking lots (lots 3 and 4), commonly known as waterfront parking, for two or more consecutive days it will require council approval and the applicant shall compensate the city for lost revenue for use of the parking lots. o If there are questions or concerns by the other departments or jurisdictions, the applicant will be contacted to address these concerns. • Depending upon the event, other licenses or permits may be required. • The City will notify the public of the event and ask if there are any concerns regarding impact to property, business, or quality of life. ORCHARD Special Event Permit Application Checklist Please use this list to ensure you have included all supporting documentation with your special event application. ❑ If your event coincides with another organizations event in the same location, please provide written approval from the event organizer that indicates their approval of your event. ❑ Reviewed Special Event Tool Kit ❑ Written approval from property owner if location is on non -City owned property (if applicable) (Page 2) ❑ Special Event Fee (Check, Cash, Credit Card) (Page 3) ❑ Insurance Certificate, with endorsement, provided at least 30 days prior to event date (Page 4) ❑ If there are road closures, have you attached a traffic control plan (Page 6) ❑ Special Liquor License (if applicable) (Page 7) ❑ Contact Department of Community Development for sign permit or food trucks (if applicable) (Page 7 and 9) ❑ Master Multi -Vendor Event License fee (if applicable) (Page 8) ❑ Contact Department of Community Development for tent permit (if applicable) (Page 9) ❑ Completed site map (Page 10) ❑ Special Event Application/Release is completed and signed by the President or Chair of organization (Page 10) City of Port Orchard I Special Event Application Revised 121512023 Page 12 of 13 Page 43 of 132 ❑ Upon event approval, use of State Highway Letter of Acknowledgment or an Agreement that is received from the Department of Transportation if State Highway is requested to be closed (Page 5) Tips for a successful event ❖ Contact the local media (Kitsap Sun, Port Orchard Independent, etc.). ❖ Post information on your social media site. ❖ Contact the Port Orchard Chamber of Commerce or Port Orchard Bay Street Association. ❖ Attend a City Council meeting to speak during citizen comments letting council and public know of your event. City of Port Orchard I Special Event Application Revised 121512023 Page 13 of 13 Page 44 of 132 �O Meeting Location: Contact us:Phone (360) 876-4407 ORCHARD McCormick Woods Clubhouse Email 5155 McCormick Woods Dr SW cityhall@portorchardwa.gov �— Port Orchard WA 98367 www.porto chardwa.gov City Council Special Meeting Minutes Town Hall of Thursday, April 9, 2026 Roll Call was taken by the City Clerk as follows: Present: John Morrissey, Mayor Pro-tem, Position No. 2 Scott Diener, Councilmember, Position No. 3 Jay Rosapepe, Councilmember, Position At -Large Shirah Dedman, Councilmember, Position No. 6 Mark Trenary, Councilmember, Position No. 1 Eric Worden, Councilmember, Position No. 4 Heidi Fenton, Councilmember, Position No. 5 Robert Putaansuu, Mayor Staff present: City Clerk and Communications Specialist Hansen. 1. Call to Order - Opening Mayor Pro-tem Morrissey opened the meeting at 6:02pm. He briefly went over the meeting outline, including the timeline for each speaker. 2. Council Presentations Councilmember Rosapepe spoke about the following topics: • Comprehensive Plan and Parks Plan, explaining those are the source documents for the road map for the City; • Supporting the PSRC 40-year vision as it helps plan for growth that is coming; • Future of park needs, including make sure they are accessible, safe, well maintained and • Asked for support from residents, should it be brought to the voters for a Park District as it is the most reliable way for long-term funding. Councilmember Diener spoke about the following topics: • Right of way improvements and how it relates to State funding; • Reminder Tremont cost over $22,000,000 and took many years to complete; • Bethel Phase 1 (Salmonberry to Blueberry) hoping to go out to bid. The estimated cost Page 45 of 132 with today's dollars is $28,000,000 to construct, including multimodal, streetscapes, and stormwater improvements; • Lincoln and Mitchell roundabouts; • Anderson Hill and McCormick Woods Drive roundabouts; • WSDOT requirements to improve natural fish and wildlife passages thoughtout State highways, protecting salmon habitat; and • Sidney right-of-way improvements near Berry Lake have begun and is almost complete. Councilmember Worden said there are flyers at the front counter with the City Council's contact information and feedback forms should they be interested. Councilmember Worden spoke about the following topics: • Introduced himself, length been on the Council and his experience in government; • Explained utility billing charges, including how often it is due, mentioning it includes sewer and stormwater fees, • City has incurred lots of new residents and that we are dealing with the sins of our past in that we have aging infrastructure and can no longer put them off; • Water rates were shifted from residents subsiding high usage of commercial building to now everyone is billed based on actual usage; • Completed a $14,000,000 lift station improvement which serves approximately 90% of the City; • Explained where most of utility money is spent, saying it is typically on infrastructure underground work, meaning improvements are hard see; • Encouraged to reduce water during the summer, which will help preserve water and reduce usage; and • We have installed new meters to save on staff time, identify leaks sooner, efficiencies. Councilmember Trenary spoke about the following topics: • Said this is the first town hall in his years of service as a councilmember and provided a brief background of his experience with the City; • Said the City is one of the fastest growing communities and has been for several years; • Talked about the changes that comes with growing; • Explained the process of hiring officers and the length of time it takes them to be out on patrol; • Acknowledged that speeding is an issue in all areas of the City and we need to change the behaviors; and provide some data on how the police determine which areas get patrolled; • Spoke about the state of the City's finances; • Announced the City has received back-to-back good audits and has good debit management; • Due to good debit management practices and investment policies, we have great ratings should the City need to borrow money, meaning we get really good interest rates; April 9, 2026, City Council Town Hall Meeting Minutes Page 2 of 6 Page 46 of 132 and • We receive lots of grants to help offset the burden of the infrastructure cost to the citizens, reducing the impact on the general fund. Councilmember Dedman introduced herself and asked the attendees to take 3 minutes to meet each other. She spoke to the following: • Committees she serves on; • Provided date/times when Coffee with Council meet; • Provided when the City Council meetings are ; • Provided her contact information, including having virtual office hours; and • Asked attendees to subscribe to the City's social media and newsletters. Councilmember Fenton spoke about the following topics: • First year FIFA World Cup series will be in Washington, which will bring economic and tourism to our downtown; • Provided timeline of when the soccer games will be playing; • Mentioned the City of Bremerton is a designated Fan Zone; • City contracted to have a Mural downtown that captures our downtown waterfront and ferry; • Downtown is bringing back hanging baskets; • Adding additional picnic tables and benches to the downtown area; • The older homes along the Bay Street Pathway have been taken down enhancing the waterfront; • City partnering with downtown property owners on a grant for downtown storefronts for them to improve their facade; and • City has organized the annual community cleanup day. Councilmember Morrissey spoke about the following topics: • Downtown projects that included updates on the Community Center and Orchard Street Plaza; • Talked about the changeover in Kitsap Bank ownership; • Downtown buildings grant program; and • Bay Street Pedestrian Pathway update. 3. Mayor Remarks Mayor Putaansuu introduced himself and provided the length of his tenure with the City, including his time spent as a Councilmember. He said he has the best job in the world. He briefly spoke about the following: • Current and upcoming construction projects; • Public should follow the City on social media as changes will be posted regularly; • Changes to the building and permitting department are in the works, including April 9, 2026, City Council Town Hall Meeting Minutes Page 3 of 6 Page 47 of 132 implementing new software and we have invested in customer experience training; • Design phase of the Ruby Creek Center near Sidney, saying we are partnering with Kitsap Transit for them to build a park and ride lot to allow that section of the City to partake in commuting by ferry and fast ferry. The development is a mixed use of retail space and housing; • State legislatures showed support of the need to improve Sedgwick/Hwy 16 relating to traffic conjunction, but it did not get funded. However, he was pleased that they are now talking about it, versus it never being considered; • Working on water interties for our water system in the McCormmick Woods/Anderson Hill area of the City; • Working on road improvements at Anderson Hill, we are in the design phase and looking for more funding to compete the project; and • Police department is just about fully staffed, which has not been that way since before COVID. 4. Q&A Session Attendees asked the City Council and Mayor questions. They included: Q: How the impact of Kitsap Bank buy out impacts the Community Event Center? A: It does not impact the project. The project is funded with City funds, grants, and the Kitsap Regional Library. They do not have any dollars connected with the project. Q: What is Council doing about homelessness downtown and what is the City policy on it? A: We are doing what the State has authorized. We offer services, but they must want the service. Although it may not be what some want, being unhoused is not a crime. Our officers, especially Sergeant Main, are familiar with all of them and monitors the area and will continue to reach out to them to encourage them to get the help they need. Q: What is the update on Kitsap Transit's downtown waterfront project? A: As of today, there are no plans to move forward with the project. There has been no recent discussions. Should they decide to move forward, they will be required to seek City Council approval, as we own the building. Q: What is the City doing about downtown, we have such a beautiful waterfront? A: More details about the downtown Buildings Grant program the City is offering was provided. Q: Where and why are people moving to Port Orchard? A: PSRC's 2040 Vision plan calls for an additional 10,000 people over the next 15 years is the major driving force. Most are migrating from Seattle as we are more affordable. Other areas of the County have little room for development; we still have more areas for development. It was stated that once the Fast Ferry was implemented it was a game April 9, 2026, City Council Town Hall Meeting Minutes Page 4 of 6 Page 48 of 132 changer. The City is experiencing similar growth as the City of Gig Harbor. Q: What is the process for the citizens to set Council priorities and what to fund? A. Council sets priorities from citizens whom they have interacted with. Annual retreats are where Council can provide feedback to staff and the Mayor on what they have heard from the community. In addition, when the public reach out at Council meetings, we take the feedback and incorporate them into their meeting, via change or at the next Council work study or retreats. Lastly, they also get feedback from Coffee with the Council get- togethers. Keep in mind that some changes are set by the State and we are required to make some policy changes and that tend to be unfunded mandates. Q: Does the City have building codes in place to prevent new construction blocking views? A: We do have a section downtown, Overlay District, that protects view. We have a map on the City's website people can look at to see if you are in a protected area. Q: When are you planning to widen Bethel? A: It is a complex answer. We fund projects of that nature mostly by impact fees. We have started collecting them from developers as they build. This project also involves purchasing property that is adjacent to the road, which takes significant amount of time. We also need to work with other partners for their utilities and the City's underground infrastructure. The City has planned it in five phases. The first phase is scheduled to start in 2028. There are a lot of moving parts with this project. Q: I was told that the parks and trails in McCormick Woods are property of the HOA, is that true? A: Not accurate. The City was donated the property during the annexation of the area. They are public and anyone can use them. Q: What is going on with the Fire Station in McCormick Woods? A: The South Kitsap Fire and Rescue purchased property to build a fire station. However, when they were ready to build they were told that the wetlands around the property increased, making the property no longer buildable. They have since purchased a different property and plan to move forward with building it there. Mayor Pro-tem Morrissey reminded the attendees that we have feedback cards and would encourage everyone to provide their feedback on how this meeting went and what they would like to see for future meetings. 5. Breakout Conversations Mayor Pro-tem Morrissey ended the Q&A session and thanked the public for their participation. He said if anyone had additional questions and/or comments now is their time to speak to individual Councilmembers on their spoken topic(s). April 9, 2026, City Council Town Hall Meeting Minutes Page 5 of 6 Page 49 of 132 Mayor, Council and public thanked each other for having the meeting in the area and spoke about projects and plans for the City. The next meeting will be at Gathered by Josephine's on June 4th. 6. Adjournment Councilmember Pro-tem Morrissey adjourned the meeting at 7:50pm. Brandy Wallace, MMC, City Clerk Robert Putaansuu, Mayor April 9, 2026, City Council Town Hall Meeting Minutes Page 6 of 6 Page 50 of 132 Meeting Location: Contact us: 0Q4 City Hall Phone (360) 876-4407 ORCNARD Council Chambers Email 216 Prospect Street cityhall@portorchardwa.gov Port Orchard, WA 98366 www.portorchardwa.gov City Council Minutes Regular Meeting of Tuesday, April 14, 2026 Roll Call was taken by the Clerk as follows: Present: Councilmember Position No. 4 Eric Worden Councilmember Position No. 5 Heidi Fenton Councilmember Position No. 2 John Morrissey Councilmember Position At -Large Jay Rosapepe Councilmember Position No. 1 Mark Trenary Councilmember Position No. 3; Mayor Pro-Tem Scott Diener Councilmember Position No. 6 Shirah Dedman Staff Present: Public Works Director Ryan, Finance Director Crocker, Community Development Director Bond, Chief of Police Brown, HR Director Lund, City Clerk Wallace, Deputy City Clerk Floyd and Communications Specialist Hansen. Audio/Visual was successful. 1. Call to Order The mayor called the meeting to order at 6:30 PM. A. Pledge of Allegiance The Mayor led the audience and Council in the Pledge of Allegiance. 2. Approval of Agenda On a motion by John Morrissey, seconded by Mark Trenary, to add an Executive Session before Business Items. The recorded vote occurred as follows: Voting Yes -Eric Worden, Heidi Fenton, John Morrissey, Jay Rosapepe, Mark Trenary, Scott Diener, Shirah Dedman; Voting No -None. The motion Passed (7-0). On a motion by Jay Rosapepe, seconded by Scott Diener, to Approve the Agenda as amended. The recorded vote occurred as follows: Voting Yes -Eric Worden, Heidi Fenton, John Morrissey, Jay Rosapepe, Mark Trenary, Scott Diener, Shirah Dedman; Voting No - None. The motion Passed (7-0). 3. Citizen Comments Page 51 of 132 April 14, 2026, City Council Meeting Minutes Page 2 of 6 Robert McGee spoke about lack of trust and culture at City Hall. Jennifer Forbes, Presiding Judge for Kitsap County Superior Court, voiced approval for the proposed street vacation ordinance. John Lacky voiced concerns with the proposed street vacation ordinance. Todd Parkington, acting Assistant Director for Capital Facilities at Kitsap County, responded to Mr. Lacky's comments. 4. Consent Agenda On a motion by Jay Rosapepe, seconded by Heidi Fenton, to Approve the Consent Agenda as presented. The recorded vote occurred as follows: Voting Yes -Eric Worden, Heidi Fenton, John Morrissey, Jay Rosapepe, Mark Trenary, Scott Diener, Shirah Dedman; Voting No -None. The motion Passed (7-0). A. Approval of Vouchers and Electronic Payments Approval of Voucher Nos. 90170 through 90184 and 90191 through 90243 and 90250 through 90270 including bank drafts in the amount of $920,946.35 and EFT's in the amount of $1,119,434.20, totaling $2,040,380.55. B. Approval of Payroll and Direct Deposits Approval of Payroll Check Nos. 90185 through 90190 and 90244 through 90249 including bank drafts and EFT's in the amount of $602,878.87 and Direct Deposits in the amount of $595,563.15 totaling $1,198,442.02. C. Adoption of a Resolution Declaring Certain Personal Property as Surplus and Authorizing its Disposition Thereof D. Approval of Special Event Street Closure: The Cruz E. Approval of Special Event Street Closure: Mustangs on the Waterfront Approval of an Agreement with the Police Guild regarding methodology for determining seniority G. Approval of Minutes: March 24, 2026, City Council Regular Meeting 5. Presentation There were no presentations. 6. Public Hearing There were no public hearings. 7. Executive Session Page 52 of 132 April 14, 2026, City Council Meeting Minutes Page 3 of 6 At 6:45 p.m., Mayor Putaansuu recessed the meeting for a 10-minute executive session pursuant to RCW 42.30.110(1)(i) to discuss legal risks of a proposed action when public discussion could have legal or financial consequences for the City. City Attorney Archer was invited to attend and City Attorney Archer noted potential action to follow. Councilmembers Diener and Worden recused themselves from the executive session. At 6:55 p.m., Mayor Putaansuu extended the Executive Session for an additional 10- minutes. At 7:05 p.m., Mayor Putaansuu reconvened the meeting back into session. 8. Business Items A. Adoption of an Ordinance Vacating City Rights -of -Way On a motion by John Morrissey, seconded by Mark Trenary, to Adopt an Ordinance Vacating the Rights -of -Way, as presented. The recorded vote occurred as follows: Voting Yes -John Morrissey, Jay Rosapepe, Mark Trenary, Shirah Dedman; Voting No -Heidi Fenton. The motion Passed (4-1). Councilmembers Diener and Worden returned to the meeting at 7:23 p.m. B. Adopting an Ordinance amending the Official Zoning Map of the City of Port Orchard reclassifying property located at 4385 Sidney Road SW (LU25-Rezone-02), from Commercial Corridor to Commercial Mixed Use On a motion by Scott Diener, seconded by Jay Rosapepe, to approve an Ordinance amending the Official Zoning Map of the City of Port Orchard, reclassifying the property located at 4385 Sidney Road SW, from Commercial Corridor to Commercial Mixed Use. The recorded vote occurred as follows: Voting Yes -Eric Worden, Heidi Fenton, John Morrissey, Jay Rosapepe, Mark Trenary, Scott Diener; Voting No-Shirah Dedman. The motion Passed (6-1). C. Adoption of an Ordinance creating the position of Compliance Program Manager and setting the salary for the position On a motion by Jay Rosapepe, seconded by John Morrissey, to adopt an Ordinance authorizing the creation of the position of Compliance Program Manager, establishing general qualifications and duties for the position and setting the salary range for the position. The recorded vote occurred as follows: Voting Yes -Eric Worden, Heidi Fenton, John Morrissey, Jay Rosapepe, Mark Trenary, Scott Diener, Shirah Dedman; Voting No - None. The motion Passed (7-0). D. Approval of a Contract with Granicus for SmartGOV System Improvements On a motion by Scott Diener, seconded by Heidi Fenton, to Approval of a Contract with Page 53 of 132 April 14, 2026, City Council Meeting Minutes Page 4 of 6 Granicus for SmartGOV System Improvements, the recorded vote occurred as follows: Voting Yes -Eric Worden, Heidi Fenton, John Morrissey, Jay Rosapepe, Mark Trenary, Scott Diener, Shirah Dedman; Voting No -None. The motion Passed (7-0). E. Approval of Minutes: March 17, 2026, City Council Work Study Session On a motion by Mark Trenary, seconded by John Morrissey, to Approve the March 171n City Council Work Study minutes. The recorded vote occurred as follows: Voting Yes -Eric Worden, Heidi Fenton, John Morrissey, Jay Rosapepe, Mark Trenary, Shirah Dedman; Voting No -None, Abstaining -Scott Diener. The motion (6-0). 9. Discussion Items There were no discussions. 10. Reports of Council Committees A. Council Advisory Committees Councilmember Rosapepe reported the Sewer Advisory Committee will be meeting at the Lumsden building for their June meeting and the Ad -Hoc Review of POMC 2.04 will be meeting this coming Sunday. 11. Report of Mayor The Mayor reported on the following: • Fundraising contract • Community Service Clean Up Day is May 16 • Update on a presentation from Puget Sound Regional Council 12. Report of Department Directors HR Director Lund reported pursuant to Ordinance [008-20 Delegation Authority to the Mayor for Creating and Modification of Job Descriptions] the job descriptions for City Clerk, Deputy City Clerk, Chief of Police, Lead Court Clerk, Assistant City Engineer, Electrician, Maintenance Technician I, and Seasonal Public Works have been updated. She also reported on updates to the Personnel Policy, Employee Inclusion Commission Survey, and the City has again received the Well City Award from the Association of Washington Cities. Community Development Director Bond said we received the 2025 Annual School Impact Fee Report. City Attorney Archer reported on two court decisions on the Public Records Act. Chief of Police Brown reported on an officer involved accident and hiring of three new Page 54 of 132 April 14, 2026, City Council Meeting Minutes Page 5 of 6 officers. In response to Councilmember Morrissey, he said there is a plan for a presentation for Deputy Police Chief Andy Brandon. City Clerk Wallace reported on the City's new public records and agenda management software. 13. Citizen Comments There were no citizen comments. 14. Good of the Order Mayor Putaansuu mentioned a future topic regarding public hearings during Council meetings. Councilmember Diener reported the City conducted 5,893 inspections in 2025. He also would like Robert McGee to apologize to him about earlier comments he made regarding animal licenses. Councilmember Fenton asked for a discussion on Port Orchard Municipal Code 5.12.120 [Suspension or Revocation Procedure], stating we owe the business community and our constituents to talk about permitting. Councilmember Rosapepe reported on Kitsap Transit and the construction management of the Ruby Creek project, asked for a 30 minute refresher on Robert's Rules of Order at a work study meeting, and said he will be licensing his dog with the City. 15. Executive Session At 8:07 p.m., Mayor Putaansuu recessed the meeting for a 2-minute break. At 8:09 p.m., Mayor Putaansuu recessed the meeting for a 5-minute executive session pursuant to RCW 42.31.110(1)(g) to discuss the performance of an employee. City Attorney Archer and HR Director Lund were invited to attend with no action to follow. At 8:14 p.m., Mayor Putaansuu extended the executive session for an additional 5- minutes. At 8:19 p.m., Mayor Putaansuu extended the executive session for an additional 3- minutes. At 8:22 p.m., Mayor Putaansuu reconvened the meeting back into session. Page 55 of 132 April 14, 2026, City Council Meeting Minutes 16. Adjournment The meeting adjourned at 8:22 p.m. No other action was taken. 17. Collective Bargaining Session Held. Brandy Wallace, MMC, City Clerk Robert Putaansuu, Mayor Page 6 of 6 Page 56 of 132 �O Contact Meeting Location: Phone (36060) 876-4407 ORCHARD Por Prospect Street Email Port Orchard, WA 98366 cityhall@portorchardwa.gov www.portorchardwa.gov City Council Minutes Special Meeting - Council Retreat of Friday, April 17, 2026 Roll Call was taken by the City Clerk as follows: Present: John Morrissey, Mayor Pro-tem, Position No. 2 Scott Diener, Councilmember, Position No. 3 Jay Rosapepe, Councilmember, Position At -Large Shirah Dedman, Councilmember, Position No. 6 Mark Trenary, Councilmember, Position No. 1 Eric Worden, Councilmember, Position No. 4 Heidi Fenton, Councilmember, Position No. 5 Robert Putaansuu, Mayor Staff present: Communications Specialist Hansen. 1. Call to Order 2. Discussion Items (No Action to Be Taken.) A. Discussion of City policies, plans, projects, and the Council's goals and vision. Mayor Putaansuu discussed emergent issues facing current projects, including concerns with a contractor due to a trenching issue causing the road to settle and create a significant dip on Sidney Road and an issue with the aquifer dropping that has impacted pumping abilities for our downtown well. In addition, provided a briefing on other existing construction projects. Councilmember Dedman arrived at the meeting at 10:00am. Council discussed the creation of a Creative District and what the City's responsibility would be for that creation. Councilmember Worden brought up the idea of creating a 1% tax on commercial development that would go specifically to art projects. The council also discussed the idea of incorporating art features at City roundabouts. Page 57 of 132 April 17, 2026, City Council Retreat Minutes Page 2 of 4 At 10:40am, Mayor Putaansuu called for a 5-minute break. Mayor Putaansuu presented a Department of Community Development improvement timeline. Councilmember Morrissey expressed frustration with the timeframe it will take to implement new software. Councilmembers Diener, Trenary and Worden, said it's standard and that they can refer to Bainbridge Island's experience implementing the same software. Council discussed an ordinance regulating the displays of certain adult entertainment stores to protect the public from unwanted exposure. The Mayor gave an update on communications, highlighting the addition of a communications specialist, an increase in public outreach, a weekly mayor's message, the start of a Department of Community Development newsletter, and additional outreach platforms. The council also saw a sneak peek of the design for the new website. Council discussed the downtown subarea plan as well as to why the State won't let the City install bollards to close off downtown roads from traffic for events. Council would like to understand their reasoning so they can reach out to State Legislators. Council continued discussions about the different forms of government and if the City should look at changing the form of governance to a City Administrator. They discussed logistics, cost, and some of the pros/cons of the different forms. They discussed meeting navigation and reviewing Robert's Rules of Order. They agreed they need to be better about policing each other. Discussed proper procedures and agreed on how to facilitate discussions during meetings. At 12:OOpm Councilmember Dedman left the meeting. Council discussed the addition of having tribal land acknowledgment in various ways, such as website or downtown signage. Councilmember Fenton shared the idea of switching from guiding principles to a mission statement. Council reviewed the Vision, Mission, Values created by staff and they explored the idea of codifying them. At 12:30pm, Mayor Putaansuu recessed for lunch. He resumed the meeting back at 1:OOpm. Council began reviewing future budget priorities, with projects that have majority support staying on the list. Some projects were moved to a mid -year review. Topics discussed included: Page 58 of 132 April 17, 2026, City Council Retreat Minutes Page 3 of 4 • Beatification funding — $50 - $1000 • Downtown storefront grants — currently $100K • Interior remodel of 720 Prospect Street (DCD) Building - $100K • Street Paving - $1M plus • Update Parks Plan - $150K • Parks levy— Nov 2028 election? Need updated parks plan first. (Odd year election $25K even year $50K) Additional Parks • Court software system - $142K 1st year - $35K annually for maintenance & licensing • Sherman Stormwater Park Design & Plan for Construction — NPDES Requirement $250K • Update the Water System Plan — Capital & Rates -$100K • New FTE 2nd HR Specialist • New FTE Training/Safety/Risk Manager • Software system for performance evaluations and track training — HR $27K • AV in Council Chambers Upgrade - $75K; Purpose: To modernize the audiovisual capabilities in the Council Chambers, ensuring reliable broadcasting and public/ADA accessibility. • Staffing Request - IT Intern • 2 Police officers - $300K 1st year per officer - $175 after • Officer Wellness - $12K/yr to continue 1st Watch programming that is currently grant funded (accreditation component) • Police Staffing Study - $6,500 • Police Professional Staff — Part-time FTE to Full -Time - $75K • New text messaging archiving system - $30K (18K increase) • Design for Bethel Phase 4 — Salmonberry to Lund — Traffic Impact Fees — Recommended for mid -year review in 2027 after we have construction costs for Bethel Phase I. • McCormick East Sub Area Plan — Collaborate with property owner to create a mixed - use shopping center at McCormick Woods Drive & Glenwood Road. $100K • 80 X 40 Four -bay equipment storage building at the new PW facility - $300K • Parks mower with drop down decks and implements - $120K • Fireworks Vote Council agreed upon priorities and individually ranked them in order of importance. Rankings were then tallied for overall group priorities. These priorities will now be used to help shape the Mayor's next biennium budget include: • Street Paving - $1.25M plus • Downtown storefront grants — currently $100K Beatification funding — $50 - $1000 • Design for Bethel Phase 4 — Salmonberry to Lund — Traffic Impact Fees — Recommended for mid -year review in 2027 after we have construction costs for Bethel Phase I. • Update the Water System Plan — Capital & Rates -$100K Page 59 of 132 April 17, 2026, City Council Retreat Minutes Page 4of4 • Sherman Stormwater Park Design & Plan for Construction — NPDES Requirement $250K • Software system for performance evaluations and track training — HR $27K • Upgrade Fuel Storage • Court software system - $142K 1st year - $35K annually for maintenance & licensing • Officer Wellness - $12K/yr to continue 1st Watch programming that is currently grant funded (accreditation component) • New text messaging archiving system - $30K (18K increase) • Police Professional Staff — Part-time FTE to Full -Time - $75K • Update Parks Plan - $150K • Parks levy— Nov 2028 election? Need updated parks plan first. (Odd year election $25K even year $50K) Additional Parks • Staffing Request - IT Intern • Fireworks Vote November 2027 Projects pushed out for mid -year review include: • New FTE Training/Safety/Risk Manager • AV in Council Chambers Upgrade - $75K • 2 Police officers - $300K 1st year per officer - $175 after • McCormick East Sub Area Plan — Collaborate with property owner to create a mixed - use shopping center at McCormick Woods Drive & Glenwood Road. $100K • 80 X 40 Four -bay equipment storage building at the new PW facility - $300K • Design for Bethel Phase 4 — Salmonberry to Lund — Traffic Impact Fees — Recommended for mid -year review in 2027 after we have construction costs for Bethel Phase I. 3. Good of the Order Nothing additional was discussed. 4. Adjournment Mayor Putaansuu adjourned the meeting at 3:30pm. Brandy Wallace, MMC, City Clerk Robert Putaansuu, Mayor Page 60 of 132 Ong City of Port Orchard 216 Prospect Street, Port Orchard, WA 98366 OPCHARD 9 (360) 876-4407 • FAX (360) 895-9029 Agenda Staff Report Business Items: 7.A. Adoption of an Ordinance Amending the 2025-2026 Biennial Budget (Crocker) Meeting Date: April 28, 2026 Presenter: Noah Crocker, Finance Director Summary and Background: The City of Port Orchard Biennial Budget for 2025-2026, adopted by Ordinance No. 018-24, and amended by Ordinance 005-25, Ordinance 010-25 and Ordinance 017-25, is written to capture revenue and expenses over the fiscal period. During the biennial period, changes to the budget in both revenue and expenditures need to be recognized by a Budget Amendment. By this Ordinance, the City Council would amend the 2025-2026 Biennial Budget as adopted by Ordinance No. 018-24, No. 005-25, No. 010-25 and amended by Ordinance No. 017-25. This Ordinance will increase total revenue and expense authority by $5,833,256 as identified in Ordinance table. The following Budget Amendment was reviewed by the Finance Committee on 4/21/2026 as well as the City Council at a Work-study Session on 04/21/2026. Relationship to Comprehensive Plan: 4 - Parks 7 - Utilities 9 - Capital Facilities 8 - Transportation Recommendation: The Finance Director recommends adoption of an Ordinance amending the 2025-2026 Biennial Budget as presented. Motion for Consideration: -hove to adopt an Ordinance amending the 2025-2026 Biennial Budget, as adopted by rdinance No. 018-24 and amended by Ordinance No. 005-25, Ordinance No. 010-25 and -vended by Ordinance No. 017-25. Has item been presented to Committee/Work Study? Yes If so, which one: Finance Committee and Work Study Page 61 of 132 Fiscal Impact: $5,833,256 Alternatives: Do not authorize and provide alternative guidance Attachments: 1. 2026.04.28-FINAL-Ordinance Amendment 2025-2026 Biennial Budget 2. Exhibit A -Salary Schedule - Redline 3. Exhibit A -Salary Schedule 4. Supporting Documentation-2026.04.28 Budget Amendment -Fund -Detail (Updated) 5. Supporting Documentation-2026.04.28 Budget Amendment -IS (Updated) Page 62 of 132 ORDINANCE NO. **-26 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, NO. 010-25 AND ORDINANCE NO. 017- 25, TO RECOGNIZE EXPENDITURES AND REVENUES NOT ANTICIPATED AT THE TIME OF THE ADOPTION OF THE 2025-2026 BIENNIAL BUDGET, INCLUDING MODIFICIATIONS TO THE EXHIBIT A, THE SALARY AND POSITIONS TABLE; 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, Ordinance No. 010-25, and Ordinance No. 017-25; and WHEREAS, the City desires to keep current on necessary budget amendments; and WHEREAS, it is necessary to consider 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; and WHEREAS, the City Finance Committee met on April 21, 2026, to review the proposed budget modifications and made recommendations; and WHEREAS, the City Council held a comprehensive work study session on the proposed budget amendments as follows and set forth herein on April 21, 2026, and made recommendations ; and WHEREAS, the City adjusts Fund 001-the Current Expense fund to increase expenditures to provide funding for funds 302, 411, 413 for cash flow, operational and capital project needs as well as the re -alignment of building purchases; and WHEREAS, the City adjusts Fund 002-City Street Fund to provide funding for operational rent payments for Vivian Court; and WHEREAS, the City adjusts Fund 109-Real Estate Excise Tax Fund to increase transfers out to Fund 206 for debt payments related to the acquisition of Lloyd Parkway; and WHEREAS, the City adjusts Fund 111-Impact Fee Fund to increase revenues and transfers out from Park Impact Fee's for the Community Events Center and increase transfers out from Bay Side Developer Funding impact fees for TIF 1.4 Anderson Hill; and WHEREAS, the City adjusts Fund 206 to increase revenues and expenses to account for 11228881.1 - 366922 - 0001 Page 63 of 132 debt service payments related to the acquisition of Lloyd Parkway; and WHEREAS, the City adjusts Fund 302 to reflect additional revenue from Fund 001-Current Expense fund for cash flow needs for capital projects, accounts for LTGO 2023 bond proceeds to be transferred out to fund 413-Water Capital Fund for Water Capital Projects, accounts for revenue and expense adjustment for community events center, and accounts for adjustments to the Lloyd Parkway building including remodeling costs, and provides funding for the acquisition of 1535 Vivian Court; and WHEREAS, the City adjusts Fund 304-Street Capital fund to provide revenue and expense authority for TIF 1.4 Anderson Hill; and WHEREAS, the City adjusts Fund 411-Water Operations fund to increase revenues and account for changes in project transfers as well as provide expenditure authority for Well 7, WSDOT SR16 Watermain, debt payments and debt prefunding for 1333 Lloyd Parkway; and WHEREAS, the City adjusts Fund 413-Water Capital fund to increase revenues and account for changes in project expenditures for Pottery, well 7, Sroufe Water Main, Water CIP No. 2C, Melcher, Water Intertie, debt payments and debt prefunding for 1333 Lloyd Parkway, Lloyd Parkway building including remodeling costs and provides funding for the acquisition of 1535 Vivian Court; and WHEREAS, the City adjusts Fund 414-Water Debt Service Fund to increase revenues and expenses to account for debt service payments related to the acquisition of Lloyd Parkway; and WHEREAS, the City adjusts Fund 421-Storm Drainage Operations fund to account for rental payments for 1535 Vivan court, debt payments and prefunding for 1333 Lloyd Parkway; and WHEREAS, the City adjusts Fund 423-Storm Drainage Capital fund to increase revenues and account for changes in project expenditures for Downtown Storm Drainage Design PA#18, Annapolis Creek Culvert PA#69, Lloyd Parkway building including remodeling costs and provides funding for the acquisition of 1535 Vivian Court; and WHEREAS, the City adjusts Fund 424-Storm Drainage Debt Service Fund to increase revenues and expenses to account for debt service payments related to the acquisition of Lloyd Parkway; and WHEREAS, the City adjusts Fund 431-Sewer Operations Fund to increase revenues and account for rental payments for 1535 Vivan court, debt payments and prefunding for 1333 Lloyd Parkway; and WHEREAS, the City adjusts Fund 433-Sewer Capital fund to increase revenues and account for changes in project expenditures for Lloyd Parkway building including remodeling costs and provides funding for the acquisition of 1535 Vivian Court; and WHEREAS, the City adjusts Fund 434-Sewer Debt Service Fund to increase revenues and expenses to account for debt service payments related to the acquisition of Lloyd Parkway; and 11228881.1 - 366922 - 0001 Page 64 of 132 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, Ordinance No. 010-25 and Ordinance No. 017-25, to modify personnel positions and salary table to meet identified needs, as follows; and WHEREAS, the City identified the need to create a new Compliance Program Manager in Public Works and fund 1 Full Time Equivalent (1 FTE), and the City Council authorized the creation of that position via ordinance at its regular meeting on April 14, 2026; 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 206,111, 302, 304, 411, 413, 414, 423,424,431,433,434; 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 City Council has considered the proposed budget amendments and finds that amendments authorized by this Ordinance are consistent with applicable laws and financial policies, and further the public's health, safety and welfare; 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, Ordinance No. 010-25 and Ordinance No. 017-25, is hereby amended to reflect the following: 11228881.1 - 366922 - 0001 Page 65 of 132 2025-2026 Biennial Budget Ordinance- Ordinance- I Ordinance- Ordinance- Ordinance- =und No. Fund Name Type 018-24 005-25 010-25 017-25 Adjustment Oxx-25 Expense $ 38,648,000 $ 48,084,066 $ 48,084,066 $ 50,047,366 $ 50,047,366 002 City Street Revenue $ 11,019,400 $ 12,138,763 $ 12,138,763 $ 12,483,197 $ 12,483,197 Expense $ 11,019,400 $ 12,138,763 $ 12,138,763 $ 12,483,197 $ 12,483,197 003 Stabilization Revenue $ 3,285,000 $ 3,365,385 $ 3,365,385 $ 3,365,385 $ 3,365,385 Expense $ 3,285,000 $ 3,365,385 $ 3,365,385 $ 3,365,385 $ 3,365,385 103 Criminal Justice Revenue $ 1,272,300 $ 1,454,126 $ 1,454,126 $ 1,404,126 $ 1,404,126 Expense $ 1,272,300 $ 1,454,126 $ 1,454,126 $ 1,404,126 $ 1,404,126 104 Special Investigative Unit Revenue $ 104,000 $ 106,096 $ 106,096 $ 106,096 $ 106,096 Expense $ 104,000 $ 106,096 $ 106,096 $ 106,096 $ 106,096 107 Community Events Revenue $ 479,400 $ 676,784 $ 676,784 $ 676,784 $ 676,784 Expense $ 479,400 $ 676,784 $ 676,784 $ 676,784 $ 676,784 108 Paths & Trails Revenue $ 19,000 $ 19,989 $ 19,989 $ 19,989 $ 19,989 Expense $ 19,000 $ 19,989 $ 19,989 $ 19,989 $ 19,989 109 Real Estate Excise Tax Revenue $ 9,481,900 $ 9,724,427 $ 9,724,427 $ 9,724,427 $ 9,724,427 Expense $ 9,481,900 $ 9,724,427 $ 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 $ 7,000 $ 17,805,326 Expense $ 17,230,600 $ 17,798,326 $ 17,798,326 $ 17,798,326 $ 7,000 $ 17,805,326 206 Bond Redemption Fund Revenue $ 2,997,300 $ 3,010,271 $ 3,010,271 $ 3,010,271 $ 27,680 $ 3,037,951 Expense $ 2,997,300 $ 3,010,271 $ 3,010,271 $ 3,010,271 $ 27,680 $ 3,037,951 302 Capital Construction Revenue $ 4,942,100 $ 3,510,612 $ 6,110,612 $ 6,244,340 $ (280,868) $ 5,963,472 Expense $ 4,942,100 $ 3,510,612 $ 6,110,612 $ 6,244,340 $ (280,868) $ 5,963,472 304 Street Capital Projects Revenue $ 22,097,500 $ 21,942,392 $ 21,942,392 $ 25,947,392 $ 70,000 $ 26,017,392 Expense $ 22,097,500 $ 21,942,392 $ 21,942,392 $ 25,947,392 $ 70,000 $ 26,017,392 411 Water- Operations Revenue $ 11,536,700 $ 11,571,162 $ 11,571,162 $ 11,957,262 $2,086,232 $ 14,043,494 Expense $ 11,536,700 $ 11,571,162 $ 11,571,162 $ 11,957,262 $2,086,232 $ 14,043,494 412 Water- Stabilization Revenue $ 1,150,000 $ 1,171,576 $ 1,171,576 $ 1,171,576 $ 1,171,576 Expense $ 1,150,000 $ 1,171,576 $ 1,171,576 $ 1,171,576 $ 1,171,576 413 Water -Capital Projects Revenue $ 13,359,800 $ 18,940,623 $ 18,940,623 $ 19,325,087 $ 955,252 $ 20,280,339 Expense $ 13,359,800 $ 18,940,623 $ 18,940,623 $ 19,325,087 $ 955,252 $ 20,280,339 414 Water- Debt Service Revenue $ 3,858,000 $ 3,992,105 $ 3,992,105 $ 3,982,305 $ 110,720 $ 4,093,025 Expense $ 3,858,000 $ 3,992,105 $ 3,992,105 $ 3,982,305 $ 110,720 $ 4,093,025 421 Storm Drainage -Operations Revenue $ 7,114,700 $ 7,972,943 $ 7,972,943 $ 9,322,943 $ 9,322,943 Expense $ 7,114,700 $ 7,972,943 $ 7,972,943 $ 9,322,943 $ 9,322,943 422 Storm Drainage -Stabilization Revenue $ 665,000 $ 677,048 $ 677,048 $ 677,048 $ 677,048 Expense $ 665,000 $ 677,048 $ 677,048 $ 677,048 $ 677,048 423 Storm Drainage -Capital Projects Revenue $ 2,867,500 $ 3,379,892 $ 3,379,892 $ 4,379,236 $ 681,541 $ 5,060,777 Expense $ 2,867,500 $ 3,379,892 $ 3,379,892 $ 4,379,236 $ 681,541 $ 5,060,777 424 Storm Drainage -Debt Service Revenue $ 665,700 $ 665,700 $ 665,700 $ 665,700 $ 93,420 $ 759,120 Expense $ 665,700 $ 665,700 $ 665,700 $ 665,700 $ 93,420 $ 759,120 431 Sewer -Operations Revenue $ 18,484,500 $ 21,198,883 $ 21,198,883 $ 21,198,883 $1,135,105 $ 22,333,988 Expense $ 18,484,500 $ 21,198,883 $ 21,198,883 $ 21,198,883 $1,135,105 $ 22,333,988 432 Sewer -Stabilization Revenue $ 1,670,000 $ 1,703,655 $ 1,703,655 $ 1,703,655 $ 1,703,655 Expense $ 1,670,000 $ 1,703,655 $ 1,703,655 $ 1,703,655 $ 1,703,655 433 Sewer -Capital Projects Revenue $ 20,894,800 $ 27,833,846 $ 27,833,846 $ 27,918,315 $ 832,994 $ 28,751,309 Expense $ 20,894,800 $ 27,833,846 $ 27,833,846 $ 27,918,315 $ 832,994 $ 28,751,309 434 Sewer - Debt Service Revenue $ 3,652,100 $ 3,690,329 $ 3,690,329 $ 3,690,329 $ 114,180 $ 3,804,509 Expense $ 3,652,100 $ 3,690,329 $ 3,690,329 $ 3,690,329 $ 114,180 $ 3,804,509 500 ER&R Revenue $ 9,644,700 $ 9,417,529 $ 9,417,529 $ 10,149,634 $ 10,149,634 Expense $ 9,644,700 $ 9,417,529 $ 9,417,529 $ 10,149,634 $ 10,149,634 632 Wastewater Treatment Facility Revenue $ 9,300,000 $ 9,928,819 $ 9,928,819 $ 9,928,819 $ 9,928,819 Expense $ 9,300,000 $ 9,928,819 $ 9,928,819 $ 9,928,819 $ 9,928,819 Grand Total Revenuel $216,440,000 $ 243,975,346 $ 246,575,346 $ 256,898,490 $ 5,833,256 $ 262,731,746 Grand Total Expense $216,440,000 $ 243,975,346 $ 246,575,346 $ 256,898,490 $ 5,833,256 $ 262,731,746 SECTION 2. Amended Salary Schedule. Exhibit A to Ordinance No. 018-24, as amended by Ordinance No. 005-25, Ordinance No. 010-25 and Ordinance No. 017-25, for authorized positions, is amended as attached hereto as Exhibit A and incorporated herein by this reference. 11228881.1 - 366922 - 0001 Page 66 of 132 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 April 2026. Rob Putaansuu, Mayor ATTEST: Brandy Wallace, MMC, City Clerk APPROVED AS TO FORM: Charlotte Archer, City Attorney PUBLISHED: EFFECTIVE DATE: 11228881.1 - 366922 - 0001 Page 67 of 132 Exhibit A PositionPersonnel d 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 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 Building Official 0 55.33 64.16 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 111 1 50.30 58.33 Plans Examiner/Building Inspector 11 1 42.71 49.54 Building Inspector 1 1 38.48 44.62 Code Enforcement Officer 11 1 41.40 48.01 Code Enforcement Officer 1 1 32.66 37.91 Parking Enforcement Offiner M DT\ 440 30$1- 36$6 Total Community Development 17.00 Municipal Court Judge 0.50 Annual 111,602.55 Municipal Court Administrator 1 53.48 62.01 Lead Clerk 4 3308 39:63 Court Clerk 4 27.96 33 37 Lead Clerk 1 35.09 41.90 Court Clerk 1 29.62 35.37 Total Judicial 3.50 Page 68 of 132 Exhibit A PositionPersonnel PositionsPersonnel 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 GiVil Cnrv'no II * 4 5220 6052 GiVil Cnr.•noor 1 * 2 49:2R 5726 Civil Engineer II * 2 52.20 60.53 Civil Engineer 1 1 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 Compliance Program Manager 1 41.93 48.63 D,Alin Works Adminic+r.o+i.m Cnoni.lic+ 4 24 12 29 57 Public Works Administrative Specialist 0 34.13 39.57 Office Assistant 11 1 31.63 36.68 Office Assistant 1 1 27.75 32.19 Parking Enforcement Officer (2 PT) 1.40 30.91 35.85 Lead N4er.h.,nir. 4 27 05 44 24 �4esNa+�js 4 34-52 4122 C1r,n�rcoirimc'm 4 36-62 4273 D-i-h I.ALerk I one 6 27 05 4424 29 22 6 2997 �Anin+on.�nr.o Tor.hnini.;n 1� z� r a Lead Mechanic 1 41.13 49.11 Mechanic 1 37.29 44.53 Electrician 1 40.29 48.10 Public Works Lead 5 41.13 49.11 Maintenance Technician 11 20 35.48 42.37 Maintenance Technician 1 2 26.94 32.16 Total Public Works 49.40 Seasonal Public Works Hourly 23.37 24.84 Intern Hourly 21.59 23.99 Temporary Employee Hourly 21.59 23.99 Ve • 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 or coverage. FTE counts are subject to modification pursuant to City Policy No. 3.17 Page 69 of 132 Exhibit A Personnel Position Listing d 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 Personnel Positions IFTE Minimum Maximum 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 Buildina Official 0 55.33 64.16 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 11 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 Total Community Development 17.00 Municipal Court Judge 0.50 Annual 111,602.55 Municipal Court Administrator 1 53.48 62.01 Lead Clerk 1 35.09 41.90 Court Clerk 1 29.62 35.37 Total Judicial 3.50 Page 70 of 132 Exhibit A PositionPersonnel PositionsPersonnel 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 1 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 " 2 52.20 60.53 Civil Engineer I " 1 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 Compliance Program Manager 1 41.93 48.63 Public Works Administrative Specialist 0 34.13 39.57 Office Assistant II 1 31.63 36.68 Office Assistant 1 1 27.75 32.19 Parking Enforcement Officer (2 PT) Lead Mechanic 1 1.40 1 1 30.91 Step 1 41.13 1 35.85 Step 7 49.11 Mechanic 1 37.29 44.53 Electrician 1 40.29 48.10 Public Works Lead 5 41.13 49.11 Maintenance Technician II 20 35.48 42.37 Maintenance Technician 1 2 26.94 32.16 Total Public Works 49.40 Seasonal Public Works Hourly 23.37 24.84 Intern Hourly 21.59 23.99 Temporary Employee Hourly 21.59 23.99 Grand2.60 *Only 2 FTE's are funded in the 2025-2026 budget. However, 3 FTE's are listed above to provide for potential promotions or coverage. FTE counts are subjectto modification pursuant to City Policy No. 3.17 Page 71 of 132 ORCHARD. 2026 Budget Amendment Proposal Fund 001-Current Expense Fund Expense Transfer to 302 for Capital Cash Flow Needs $300,000 Transfer to 411 for WSDOT SR16 Water Main $700,000 Transfer to 411 for Well 7 (Pump & Design) $150,000 Transfer to 413 for Water CIP No2C PRV 390 to 260 (Water Operating Portion) $50,000 Defund 1333 Lloyd Parkway -Utilities Shop Purchase $2,600,000 Transfer Out -Purchase 1535 Vivian Court -Oper Shop $ 1,451,099 Rental Payments for Use of Combined Shop Facility $ 252,024 • Total Expenses $303,123 • Reduce Unassigned Fund Balance $303,123 r..-J nn-% Expense Rental Payments for Use of Combined Shop Facility $ 123,876 • Total Expenses $123,876 • Reduce Unassigned Fund Balance $123,876 r..--1 4 nn Expense REET 1 for GF 1333 Lloyd Parkway Debt Payments $13,280 REET 1 for GF 1333 Lloyd Parkway Debt Prefund $14,400 • Total Expenses $27,680 • Reduce Unassigned Fund Balance $27,680 Page 72 of 132 ORCHARD. Fund 111-Impact Fee Fund Revenue Interest Earnings $7,000 • Total Revenue $7,000 Expense Park Impact fees (Transfer to 302) • Amendment 15-CEC Time Extension $125,174 • Amendment 15-CEC LEED Time Extension $7,078 • Amendment 15-Orchard Plaza Time Extension $70,343 • Amendment 15-Shoreline Time Extension $118,500 o Total Expense $321,095 o Reduce Park Impact Fee Ending Fund Balance $321,095 Transportation Impact Fees (Transfer to 304) • Bay Side Dev.Fund-TIF 1.4 Anderson Hill $70,000 o Total Expense $70,000 o Reduce Bay Side Dev. Fund Ending Fund Balance $63,000 • Total Reduction of Fund 111 Fund Balance $384,095 r.. -J •fnc Revenue Transfer from 109 1333 Lloyd Parkway Debt Payments $13,280 Transfer from 109 1333 Lloyd Parkway Debt Prefund $14,400 • Total Revenue $27,680 Expense GF 1333 Lloyd Parkway Debt Payments $13,280 • Total Expenses $13,280 • Increase in 1333 Lloyd Parkway Debt Prefund Fund Bal $14,400 Page 73 of 132 ORCHARD. Fund 302-Capital Construction Fund Cash Flow for Projects Revenue Transfer from 001 for Capital Cash Flow Needs $300,000 • Total Revenue $300,000 o Increase in Ending Fund Balance $300,000 Bond Funded Projects Revenue Increase in Interest Earnings $45,000 • Total Revenue $45,000 Expense City Hall • Reduce Budget $100,000 Givens Park • Reduce Budget $75,000 Water Capital Projects (Melcher, Intertie &Water CIP No. 2C • Transfer to 413 $220,000 Total Expense $45,000 • No Impact Ending Fund Balance $0 Communitv Events Center Revenue Transfers In from Park Impact Fees Fund 111 $321,095 Total Revenue $321,095 Page 74 of 132 ORCHARD. Expense Increase Expense Amendment 15-CEC Time Extension $125,174 Increase Expense Amendment 15-CEC LEED Time Extension $7,078 Increase Expense Amendment 15-Orchard Plaza Time Extension $70,343 Increase Expense Amendment 15-Shoreline Time Extension $118,500 Total Expense $321,095 o No Impact Ending Fund Balance $0 Public Works Buildings Revenue Defund 1333 Lloyd Parkway -Utilities Shop Purchase Revenue $2,600,000 Debt Proceeds for 1333 Lloyd Parkway- Utility Shop Allocated $200,000 Transfer In- Purchase 1535 Vivian Court -Operations Shop $1,451,099 Total Revenue (948,901) Expense Defund 1333 Lloyd Parkway -Utilities Shop Purchase Expense $2,600,000 Defund 1333 Lloyd Parkway -Utilities Shop Upgrades Expense $75,000 Fund 1333 Lloyd Parkway- Utility Shop Purchase Exp Allocated $208,000 Fund 1333 Lloyd Parkway -Utilities Shop Upgrades Exp Allocated $6,000 1535 Vivian Court -Operations Shop Purchase Exp $1,451,099 Total Expenses ($1,009,901) o Increase in Ending Fund Balance $61,000 Total Impact to Fund 302 is an Increase $361,000 Page 75 of 132 ORCHARD. Fund 304-Street Capital Construction Fund Revenue Transfers In from Fund 111 for TIF 1.4 Anderson Hill $70,000 • Total Revenue $70,000 Expense Increase Expense for TIF 1.4 Anderson Hill $70,000 • Total Expense $70,000 • No Impact Ending Fund Balance $0 Fund 411-Water Operating Fund Revenue Increase 2025 Water Operating Revenues $177,500 Increase 2026 Transfer Revenues $850,000 1535 Vivian Court -Operations Shop Sale Proceeds $ 821,128 Rental Proceeds for Use of Combined Shop Facility $ 237,604 • Total Revenue $2,086,232 Expense Reduce Transfer to 413 TIP 1.5 Pottery $125,000 Reduce Transfer to 413 Well 7 Salary & Ben $15,000 Increase Transfer to 413 Srouf WM (Retainage Release $17,500 Increase Expense for Well 7 (Design & Pump) $300,000 Increase Expense for WSDOT SR16 $700,000 Water Utility 1333 Lloyd Parkway Debt Payments $53,120 Water Utility 1333 Lloyd Parkway Debt Prefund $57,600 Page 76 of 132 ORCHARD. • Total Expense $988,220 • Increase Fund Balance by $1,098,012 Fund 413-Water Capital Fund Revenue Reduce Transfer to 413 TIP 1.5 Pottery $125,000 Reduce Transfer to 413 Well 7 Salary & Ben $15,000 Increase Transfer to 413 Srouf WM (Retainage Release $17,500 Increase Transfer to 413 Water CIP NO. 2C $50,000 Increase Transfer to 413 Bond Proceeds (Melcher,Intertie,Water CIP NO. 2C) $220,000 Debt Proceeds for 1333 Lloyd Parkway- Utility Shop Allocated $807,752 • Total Revenues $955,252 Expense Reduce Expense to 413 TIP 1.5 Pottery $125,000 Reduce Expense to 413 Well 7 Salary & Ben $15,000 Increase Expense to 413 Sroufe WM (Retainage Release $17,500 Increase Expense to 413 Water CIP NO. 2C $200,000 Increase Expense to (Melcher, Intertie, Water CIP NO. 2C) $220,000 Fund 1333 Lloyd Parkway- Utility Shop Purchase Exp Allocated $832,000 Fund 1333 Lloyd Parkway -Utilities Shop Upgrades Exp Allocated $24,000 Fund 1333 Lloyd Parkway -Utilities Shop Upgrades Debt Cost $7,752 • Total Expense $1,161,252 • Reduce Fund Balance by $206,000 Page 77 of 132 ORCHARD. Fund 414 Revenue Transfer from 411 Water Utility 1333 Lloyd Parkway Debt Payments $53,120 Transfer from 411 Water Utility 1333 Lloyd Parkway Debt Prefund $57,600 • Total Revenue $110,720 Expense Water 1333 Lloyd Parkway Debt Payments $53,120 • Total Expenses $53,120 • Increase in 1333 Lloyd Parkway Debt Prefund Fund Ball $57,600 Fund 421-Storm Drainage Operating Fund Expense Rental Payments for Use of Combined Shop Facility $ 189,806 Storm Drainage Utility 1333 Lloyd Parkway Debt Payments $44,820 Storm Drainage Utility 1333 Lloyd Parkway Debt Prefund $48,600 Total Expense $283,226 • Reduce Fund Balance by $283,226 Fund 423-Storm Drainage Capital Fund Revenue Debt Proceeds for 1333 Lloyd Parkway- Utility Shop Allocated $681,541 • Total Revenue $681,541 Expense PA#18 Amendment 20-Storm Drainage $209,000 PA#69 Annapolis Creek Culvert $250,000 Fund 1333 Lloyd Parkway- Utility Shop Purchase Exp Allocated $702,000 Fund 1333 Lloyd Parkway -Utilities Shop Upgrades Exp Allocated $20,250 Page 78 of 132 ORCHARD. Fund 1333 Lloyd Parkway -Utilities Shop Upgrades Debt Cost $6,540 1535 Vivian Court -Operations Shop Purchase Expense Allocated $177,032 • Total Expense $1,364,822 • Reduce Fund Balance by $683,281 Fund 424-Storm Drainaee Debt Service Fund Revenue Transfer from 421 Storm Utility 1333 Lloyd Parkway Debt Payments $44,820 Transfer from 421 Storm Utility 1333 Lloyd Parkway Debt Prefund $48,600 • Total Revenue $93,420 Expense Storm 1333 Lloyd Parkway Debt Payments $48,820 • Total Expenses $48,820 • Increase in 1333 Lloyd Parkway Debt Prefund Fund Bal $48,600 Fund 431-Sewer Oaeratine Fund Revenue 1535 Vivian Court -Operations Shop Sale Proceeds $807,003 Rental Proceeds for Use of Combined Shop Facility $328,102 • Total Revenue $1,135,105 Expense Sewer Utility 1333 Lloyd Parkway Debt Payments $54,780 Sewer Utility 1333 Lloyd Parkway Debt Prefund $59,400 • Total Expense $114,180 • Increase in Fund Balance by $1,020,925 Page 79 of 132 ORCHARD. Revenue Debt Proceeds for 1333 Lloyd Parkway- Utility Shop Allocated $832,994 • Total Revenue $832,994 Expense Fund 1333 Lloyd Parkway- Utility Shop Purchase Exp Allocated $858,000 Fund 1333 Lloyd Parkway -Utilities Shop Upgrades Exp Allocated $24,750 Fund 1333 Lloyd Parkway -Utilities Shop Debt Cost $7,995 • Total Expense $890,745 • Reduce Fund Balance by $57,751 Revenue Transfer from 431 Sewer Utility 1333 Lloyd Parkway Debt Payments $54,780 Transfer from 431 Sewer Utility 1333 Lloyd Parkway Debt Prefund $59,400 • Total Revenue $114,180 Expense Sewer Utility 1333 Lloyd Parkway Debt Payments $54,780 • Total Expenses $54,780 • Increase in 1333 Lloyd Parkway Debt Prefund Fund Bal $59,400 Personnel Requests • Update Salary Table Per Union Contract • Public Works-1 FTE Engineer (5 total) • Compliance Program Manager • Parking Enforcement to report to Public Works Page 80 of 132 2025-2026 Biennial 2025-2026 2025-2026 Amended • MBeginning M$ Budget Ord. 017-25 Adjustments Biennial Budget Fund Balance 101,222,395.83 $ - $ 101,222,396 Revenue $ 155,676,094.62 $ 5,833,256 $ 161,509,351 Expense $ 180,195,892.24 $ 5,242,351 $ 185,438,243 Ending Fund Balance $ 76,702,598.21 $ 590,905 $ 77,293,503 2025-2026 Biennial 2025-2026 2025-2026 Amended Budget Ord. 017-25 Adjustments Biennial Budget Total Revenue $ 256,898,490.45 $ 5,833,256 $ 262,731,746 Total Expense $ 256,898,490.45 $ 5,833,256 $ 262,731,746 Fund: 002 -City Street Fund 2025-2026 Biennial 2025-2026 2025-2026 Amended Budget Ord. 017-25 Adjustments Biennial Budget Beginning Fund Balance $ 4,448,362.89 $ - $ 4,448,363 Revenue $ 8,034,834.00 $ - $ 8,034,834 Expense $ 10,452,813.00 $ 123,876 $ 10,576,689 Ending Fund Balance $ 2,030,383.89 $ (123,876) $ 1,906,508 2025-2026 Biennial 2025-2026 2025-2026 Amended Fund: 003 -Stabilization Fund Budget Ord. 017-25 Adjustments Biennial Budget Beginning Fund Balance $ 3,235,385.04 $ - $ 3,235,385 Revenue $ 130,000.00 $ - $ 130,000 Expense $ - $ - $ - Ending Fund Balance $ 3,365,385.04 $ - $ 3,365,385 Page 81 of 132 2025-2026 Biennial 2025-2026 2025-2026 Amended Fund: 103 -Criminal Justice Budget Ord. 017-25 Adjustments Biennial Budget Beginning Fund Balance $ 576,826.36 $ - $ 576,826 Revenue $ 827,300.00 $ - $ 827,300 Expense $ 1,356,340.00 $ - $ 1,356,340 Ending Fund Balance $ 47,786.36 $ - $ 47,786 2025-2026 Biennial 2025-2026 2025-2026 Amended Fund: 104 -Special Investigative Unit Budget Ord. 017-25 Adjustments Biennial Budget Beginning Fund Balance $ 106,095.86 $ - $ 106,096 Revenue $ - $ - $ - Expense $ 8,000.00 $ - $ 8,000 Ending Fund Balance $ 98,095.86 $ - $ 98,096 2025-2026 Biennial 2025-2026 2025-2026 Amended Fund: 107 -Community Events Budget Ord. 017-25 Adjustments Biennial Budget Beginning Fund Balance $ 472,383.71 $ - $ 472,384 Revenue $ 204,400.00 $ - $ 204,400 Expense $ 239,400.00 $ - $ 239,400 Ending Fund Balance $ 437,383.71 $ - $ 437,384 2025-2026 Biennial 2025-2026 2025-2026 Amended Fund: 108 -Paths &Trails Budget Ord. 017-25 Adjustments Biennial Budget Beginning Fund Balance $ 17,989.38 $ - $ 17,989 Revenue $ 2,000.00 $ - $ 2,000 Expense $ - $ - $ - Ending Fund Balance $ 19,989.38 $ - $ 19,989 2025-2026 Biennial 2025-2026 2025-2026 Amended Fund: 109 -Real Estate Excise Tax Budget Ord. 017-25 Adjustments Biennial Budget Beginning Fund Balance $ 6,523,527.01 $ - $ 6,523,527 Revenue $ 3,200,900.00 $ - $ 3,200,900 Expense $ 8,249,300.00 $ 27,680 $ 8,276,980 Ending Fund Balance $ 1,475,127.01 $ (27,680) $ 1,447,447 Page 82 of 132 Fund: 111 -Impact Mitigation Fee 2025-2026 Biennial Budget Ord. 017-25 2025-2026 Adjustments 2025-2026 Amended Biennial Budget Beginning Fund Balance Revenue Expense $ $ $ 11,214,726.06 6,583,600.00 10,208,176.00 $ $ $ - 7,000 391,095 $ $ $ 11,214,726 6,590,600 10,599,271 Ending Fund Balance $ 7,590,150 $ (384,095) $ 7,206,055 Restricted EndCash&Inv-Parks $ 5,748,600 $ (321,095) $ 5,427,505 Restricted EndCash&Inv-Transport $ 1,691,425 $ - $ 1,691,425 Restricted EndCash&Inv-Bayside $ 63,941 $ (63,000) $ 941 Restricted EndCash&Inv-Sinclair Ridge MOU $ 86,184 $ - $ 86,184 2025-2026 Biennial 2025-2026 2025-2026 Amended Fund: 206 -Bond Redemption Fund Budget Ord. 017-25 Adjustments Biennial Budget Beginning Fund Balance $ 517,370.63 $ - $ 517,371 Revenue $ 2,492,900.00 $ 27,680 $ 2,520,580 Expense $ 1,997,300.00 $ 13,280 $ 2,010,580 Ending Fund Balance $ 1,012,970.63 $ 14,400 $ 1,027,371 2025-2026 Biennial 2025-2026 2025-2026 Amended Fund: 304 -Street Capital Projects Budget Ord. 017-25 Adjustments Biennial Budget Beginning Fund Balance $ 952,111.99 $ - $ 952,112 Revenue $ 24,995,280.00 $ 70,000 $ 25,065,280 Expense $ 25,036,588.64 $ 70,000 $ 25,106,589 Ending Fund Balance $ 910,803.35 $ - $ 910,803 Page 83 of 132 2025-2026 Biennial 2025-2026 2025-2026 Amended Fund: 412 -Water Stabilization Budget Ord. 017-25 Adjustments Biennial Budget Beginning Fund Balance $ 1,171,575.95 $ - $ 1,171,576 Revenue $ - $ - $ - Expense $ - $ - $ - Ending Fund Balance $ 1,171,575.95 $ - $ 1,171,576 Fund: 413 -Water Capital 2025-2026 Biennial 2025-2026 2025-2026 Amended Budget Ord. 017-25 Adjustments Biennial Budget Beginning Fund Balance $ 8,436,823.26 $ - $ 8,436,823 Revenue $ 10,888,264.00 $ 955,252 $ 11,843,516 Expense $ 9,793,864.00 $ 1,161,252 $ 10,955,116 Ending Fund Balance $ 9,531,223.26 $ (206,000) $ 9,325,223 2025-2026 Biennial 2025-2026 2025-2026 Amended Fund: 414 -Water Debt Service Budget Ord. 017-25 Adjustments Biennial Budget Beginning Fund Balance $ 1,285,004.73 $ - $ 1,285,005 Revenue $ 2,697,300.00 $ 110,720 $ 2,808,020 Expense $ 2,697,200.00 $ 53,120 $ 2,750,320 Ending Fund Balance $ 1,285,104.73 $ 57,600 $ 1,342,705 Fund: 421 -Storm Drainage Utility 2025-2026 Biennial 2025-2026 2025-2026 Amended Budget Ord. 017-25 Adjustments Biennial Budget Beginning Fund Balance $ 2,328,243.07 $ - $ 2,328,243 Revenue $ 6,994,700.00 $ - $ 6,994,700 Expense $ 6,768,376.86 $ 283,226 $ 7,051,603 Ending Fund Balance $ 2,554,566.21 $ (283,226) $ 2,271,340 Page 84 of 132 2025-2026 Biennial 2025-2026 2025-2026 Amended Fund: 422 -Storm Drainage Stabilization Budget Ord. 017-25 Adjustments Biennial Budget Beginning Fund Balance $ 602,048.00 $ - $ 602,048 Revenue $ 75,000.00 $ - $ 75,000 Expense $ - $ - $ - Ending Fund Balance $ 677,048.00 $ - $ 677,048 Fund: 423 -Storm Drainage Capital Facil 2025-2026 Biennial 2025-2026 2025-2026 Amended Budget Ord. 017-25 Adjustments Biennial Budget Beginning Fund Balance $ 942,392.10 $ - $ 942,392 Revenue $ 3,436,844.00 $ 681,541 $ 4,118,385 Expense $ 2,750,742.00 $ 1,364,822 $ 4,115,564 Ending Fund Balance $ 1,628,494.10 $ (683,281) $ 945,213 2025-2026 Biennial 2025-2026 2025-2026 Amended Fund: 424 -Storm Drainage Debt Service Budget Ord. 017-25 Adjustments Biennial Budget Beginning Fund Balance $ - $ - $ - Revenue $ 665,700.00 $ 93,420 $ 759,120 Expense $ 442,700.00 $ 44,820 $ 487,520 Ending Fund Balance $ 223,000.00 $ 48,600 $ 271,600 2025-2026 Biennial 2025-2026 2025-2026 Amended Fund: 431 -Sewer Operating Budget Ord. 017-25 Adjustments Biennial Budget Beginning Fund Balance $ 8,754,382.59 $ - $ 8,754,383 Revenue $ 12,444,500.00 $ 1,135,105 $ 13,579,605 Expense $ 17,342,144.19 $ 114,180 $ 17,456,324 Ending Fund Balance $ 3,856,738.40 $ 1,020,925 $ 4,877,663 2025-2026 Biennial 2025-2026 2025-2026 Amended Fund: 432 -Sewer Stabilization Budget Ord. 017-25 Adjustments Biennial Budget Beginning Fund Balance $ 1,703,654.80 $ - $ 1,703,655 Revenue $ - $ - $ - Expense $ - $ - $ - Ending Fund Balance $ 1,703,654.80 $ - $ 1,703,655 Page 85 of 132 Fund: 433 -Sewer Capital 2025-2026 Biennial 2025-2026 2025-2026 Amended Budget Ord. 017-25 Adjustments Biennial Budget Beginning Fund Balance $ 10,194,669.09 $ - $ 10,194,669 Revenue $ 17,723,645.98 $ 832,994 $ 18,556,640 Expense $ 17,857,874.31 $ 890,745 $ 18,748,619 Ending Fund Balance $ 10,060,440.76 $ (57,751) $ 10,002,690 2025-2026 Biennial 2025-2026 2025-2026 Amended Fund: 434 -Sewer Debt Service Budget Ord. 017-25 Adjustments Biennial Budget Beginning Fund Balance $ 1,526,828.59 $ - $ 1,526,829 Revenue $ 2,163,500.00 $ 114,180 $ 2,277,680 Expense $ 2,163,100.00 $ 54,780 $ 2,217,880 Ending Fund Balance $ 1,527,228.59 $ 59,400 $ 1,586,629 2025-2026 Biennial 2025-2026 2025-2026 Amended Fund: 500 -Equipment Rental and Revolving Budget Ord. 017-25 Adjustments Biennial Budget Beginning Fund Balance $ 5,488,629.03 $ - $ 5,488,629 Revenue $ 4,661,005.00 $ - $ 4,661,005 Expense $ 5,098,005.00 $ - $ 5,098,005 Ending Fund Balance $ 5,051,629.03 $ - $ 5,051,629 2025-2026 Biennial 2025-2026 2025-2026 Amended Fund: 632 -Wastewater Treatment Facil Fee Budget Ord. 017-25 Adjustments Biennial Budget Beginning Fund Balance $ 7,928,819.02 $ - $ 7,928,819 Revenue $ 2,000,000.00 $ - $ 2,000,000 Expense $ 400,000.00 $ - $ 400,000 Ending Fund Balance $ 9,528,819.02 $ - $ 9,528,819 Page 86 of 132 DiW City of Port Orchard ORCHARD 9 216 Prospect Street, Port Orchard, WA 98366 (360) 876-4407 • FAX (360) 895-9029 Agenda Staff Report Business Items: 7.13. Adoption of an Ordinance Amending POMC 13.10 Rate Reduction for Low Income(Crocker) Meeting Date: April 28, 2026 Presenter: Summary and Background: In 2023, the City Council established water, sewer and stormwater rate reductions for low income residents, because access to safe, reliable, and affordable utility services is essential to public health, sanitation, and overall community well-being. The City recognizes the importance of periodically evaluating and updating eligibility thresholds for low-income utility rate reductions to ensure that assistance is equitably targeted, reflects current economic conditions, and promotes the responsible and effective use of public resources. The Mayor and City Council reviewed the Low -Income Utility Discount Program available to assist citizens. During the review, the council discussed adjusting the eligibility parameters of the program to allow for more participation and increasing the discount to provide greater relief to those in the program. Staff presented alternative adjustments and the Council provided direction to make the following adjustments: 1) Increase the discount from a 25% reduction from the fixed base rates to a 35% reduction to the fixed base rates. 2) Increase the maximum annual household income threshold factor from 125% of the federal poverty to 150%. The Finance Department will monitor the changes to the program and report back to the Council. Relationship to Comprehensive Plan: 7 - Utilities Recommendation: The Finance Department recommends approval of the adjustments to the Page 87 of 132 Low -Income Utility Discount Program as presented in the Ordinance. Motion for Consideration: I move to adopt Ordinance No. XX-26 amending 13.10.020 and 13.10.030 as presented Has item been presented to Committee/Work Study? Yes If so, which one: Finance and Workstudy Fiscal Impact: $5,000-$10,000 Alternatives: Do not approve Ordinance and provide alternative guidance Attachments: 1. Final -Ordinance - Low Income Utility Discount (Redline) 2. Final -Ordinance - Low Income Utility Discount (CLEAN) Page 88 of 132 , up I► —AffoAi[el AN ORDINANCE OF THE CITY OF PORT ORCHARD, WASHINGTON, PERTAINING TO WATER, SEWER AND STORMWATER RATE REDUCTIONS FOR LOW INCOME RESIDENTS; AMENDING PORT ORCHARD MUNICIPAL CODE SECTIONS 13.10.020 AND 13.10.030; SETTING ELIGIBILITY THRESHOLD FOR RATE REDUCTION FOR LOW INCOME RESIDENTS; PROVIDING FOR SEVERABILITY AND PUBLICATION; AND SETTING AN EFFECTIVE DATE. WHEREAS, in 2023, the City Council established water, sewer and stormwater rate reductions for low income residents, because access to safe, reliable, and affordable utility services is essential to public health, sanitation, and overall community well-being; and WHEREAS, the City recognizes the importance of periodically evaluating and updating eligibility thresholds for low-income utility rate reductions to ensure that assistance is equitably targeted, reflects current economic conditions, and promotes the responsible and effective use of public resources; and WHEREAS, RCW 35.92.020(5) and RCW 35.67.020 authorize local governments in Washington to provide assistance to aid low-income individuals and families in connection with utility services the government provides; and WHEREAS, the Washington State Constitution permits the City to provide a rate reduction to aid the "poor and infirm"; and WHEREAS, the City Council desires to adjust the low-income eligibility threshold set at Port Orchard Municipal Code (POMC) Section 13.10.020, which sets the eligibility threshold at 125 percent of the federal poverty guidelines; and WHEREAS, the City Council desires to adjust the rate reduction offered to qualified low income residents as identified in Chapter 13.10.030 Rate Reduction for Eligible Low -Income Residents; Now, therefore, THE CITY COUNCIL OF THE CITY OF PORT ORCHARD, WASHINGTON, DO ORDAIN AS FOLLOWS: SECTION 1. Amendment. Section 13.10.020 of the Port Orchard Municipal Code is hereby amended to read as follows: 13.10.020 Definitions The following words when used in this chapter shall have the following meanings, unless the 11228906.1 - 366922 - 0001 Page 89 of 132 Ordinance No. context clearly indicates otherwise: Page 2 of 3 (1) "Applicant" means the person applying to the City for the rate reduction set out in this chapter. (2) "City' shall mean the city of Port Orchard, Washington, a municipal corporation created and existing under the laws of the state of Washington. (3) "Finance Director" means the position established at POMC 2.08.030. (4) "Low Income" means a resident of the City of Port Orchard with a maximum annual household income at or below one hundred and twenty five percent (1'� ga` hundred and fifty percent 150% of the federal poverty guidelines applicable at the time the applicant applies for the rate reduction to the City. (5) "Resident" means a single occupant, head of a household, or spouse of the head of a household who resides in the dwelling unit as the applicant's primary resident and does not rent the residence during the applicant's absence. (6) "Service Charge" shall mean the monthly fee levied by the City's stormwater drainage utility set out at POMC 13.06.100. (7) "Sewer Base Rate" means the bimonthly sewer rates set out at POMC 13.04.020. (8) "Utility" means the water, sewer and storm drainage utilities established and operated by the City. (9) "Water Base Rate" means the bimonthly water base rate set out at POMC 13.04.010. SECTION 2. Amendment. Section 13.10.030 of the Port Orchard Municipal Code is hereby amended to read as follows: 13.10.030 Rate Reduction for Eligible Low -Income Residents Water and Sewer. The Finance Director is authorized to discount the water base rate and the sewer base rate for utility services to qualified low-income residents by 2%35%, provided there shall not be more than one such discount per utility, per household. Stormwater. The Finance Director is authorized to discount the service charge for stormwater drainage utility services to qualified low-income residents by 2-5-OA35%, provided there shall not 11228906.1 - 366922 - 0001 Page 90 of 132 Ordinance No. be more than one such discount per household. Page 3 of 3 Applicants shall verify such information to the satisfaction of the Finance Director or designee, and shall provide such other data as is deemed appropriate upon forms prepared by the Finance Director or designee, and in the manner determined by the Finance Director or designee. 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 five days after publication as provided by law. PASSED by the City Council of the City of Port Orchard, APPROVED by the Mayor and attested by the Clerk in authentication of such passage this 28th day of April, 2026. Robert Putaansuu, Mayor ATTEST: Brandy Wallace, MMC, City Clerk /Aaa100 1107e�VIEel 901IN II Charlotte A. Archer, City Attorney PUBLISHED: EFFECTIVE DATE: 11228906.1 - 366922 - 0001 Page 91 of 132 , up I► —AffoAi[el AN ORDINANCE OF THE CITY OF PORT ORCHARD, WASHINGTON, PERTAINING TO WATER, SEWER AND STORMWATER RATE REDUCTIONS FOR LOW INCOME RESIDENTS; AMENDING PORT ORCHARD MUNICIPAL CODE SECTIONS 13.10.020 AND 13.10.030; SETTING ELIGIBILITY THRESHOLD FOR RATE REDUCTION FOR LOW INCOME RESIDENTS; PROVIDING FOR SEVERABILITY AND PUBLICATION; AND SETTING AN EFFECTIVE DATE. WHEREAS, in 2023, the City Council established water, sewer and stormwater rate reductions for low income residents, because access to safe, reliable, and affordable utility services is essential to public health, sanitation, and overall community well-being; and WHEREAS, the City recognizes the importance of periodically evaluating and updating eligibility thresholds for low-income utility rate reductions to ensure that assistance is equitably targeted, reflects current economic conditions, and promotes the responsible and effective use of public resources; and WHEREAS, RCW 35.92.020(5) and RCW 35.67.020 authorize local governments in Washington to provide assistance to aid low-income individuals and families in connection with utility services the government provides; and WHEREAS, the Washington State Constitution permits the City to provide a rate reduction to aid the "poor and infirm"; and WHEREAS, the City Council desires to adjust the low-income eligibility threshold set at Port Orchard Municipal Code (POMC) Section 13.10.020, which sets the eligibility threshold at 125 percent of the federal poverty guidelines; and WHEREAS, the City Council desires to adjust the rate reduction offered to qualified low income residents as identified in Chapter 13.10.030 Rate Reduction for Eligible Low -Income Residents; Now, therefore, THE CITY COUNCIL OF THE CITY OF PORT ORCHARD, WASHINGTON, DO ORDAIN AS .Tel I X91T5.15 SECTION 1. Amendment. Section 13.10.020 of the Port Orchard Municipal Code is hereby amended to read as follows: 13.10.020 Definitions The following words when used in this chapter shall have the following meanings, unless the 11228906.1 - 366922 - 0001 Page 92 of 132 Ordinance No. context clearly indicates otherwise: Page 2 of 3 (1) "Applicant" means the person applying to the City for the rate reduction set out in this chapter. (2) "City' shall mean the city of Port Orchard, Washington, a municipal corporation created and existing under the laws of the state of Washington. (3) "Finance Director" means the position established at POMC 2.08.030. (4) "Low Income" means a resident of the City of Port Orchard with a maximum annual household income at or below one hundred and fifty percent (150%) of the federal poverty guidelines applicable at the time the applicant applies for the rate reduction to the City. (5) "Resident" means a single occupant, head of a household, or spouse of the head of a household who resides in the dwelling unit as the applicant's primary resident and does not rent the residence during the applicant's absence. (6) "Service Charge" shall mean the monthly fee levied by the City's stormwater drainage utility set out at POMC 13.06.100. (7) "Sewer Base Rate" means the bimonthly sewer rates set out at POMC 13.04.020. (8) "Utility" means the water, sewer and storm drainage utilities established and operated by the City. (9) "Water Base Rate" means the bimonthly water base rate set out at POMC 13.04.010. SECTION 2. Amendment. Section 13.10.030 of the Port Orchard Municipal Code is hereby amended to read as follows: 13.10.030 Rate Reduction for Eligible Low -Income Residents Water and Sewer. The Finance Director is authorized to discount the water base rate and the sewer base rate for utility services to qualified low-income residents by 35%, provided there shall not be more than one such discount per utility, per household. Stormwater. The Finance Director is authorized to discount the service charge for stormwater drainage utility services to qualified low-income residents by 35%, provided there shall not be more than one such discount per household. Applicants shall verify such information to the satisfaction of the Finance Director or designee, 11228906.1 - 366922 - 0001 Page 93 of 132 Ordinance No. Page 3 of 3 and shall provide such other data as is deemed appropriate upon forms prepared by the Finance Director or designee, and in the manner determined by the Finance Director or designee. 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 five days after publication as provided by law. PASSED by the City Council of the City of Port Orchard, APPROVED by the Mayor and attested by the Clerk in authentication of such passage this 28th day of April, 2026. Robert Putaansuu, Mayor Brandy Wallace, MMC, City Clerk APPROVED AS TO FORM: Charlotte A. Archer, City Attorney PUBLISHED: EFFECTIVE DATE: 11228906.1 - 366922 - 0001 Page 94 of 132 Ong City of Port Orchard 216 Prospect Street, Port Orchard, WA 98366 OPCHARD 9 (360) 876-4407 • FAX (360) 895-9029 Agenda Staff Report Business Items: 7.C. Adoption of a Resolution Repealing 1735 and Establishing an Updated Water Leak Policy (Crocker) Meeting Date: April 28, 2026 Presenter: Noah Crocker, Finance Director Summary and Background: The City established a Water leak policy in 1987 by Resolution 1469. In 1996, the City repealed resolution 1469 and replaced with resolution 1735 clarifying the Water Leak Credit Policy. The City has evaluated the current leak credit policy and finds it has not kept up with the changes in cost overtime. The City desires to repeal resolution 1735 and replace with an updated Water Leak Credit Policy which reflects current operations and needs. Relationship to Comprehensive Plan: 7 - Utilities Recommendation: Finance Recommends approving the Resolution as presented. Motion for Consideration: I move to approve a Resolution repealing 1735 and establishing a new Utility Water Leak Credit Has item been presented to Committee/Work Study? Yes If so, which one: Finance and Workstudy Fiscal Impact: N/A Alternatives: Do not approve and provide alternative guidance Attachments: 1. 2026.04.28-Final Water Leak Resolution Page 95 of 132 RESOLUTION NO. A RESOLUTION OF THE CITY OF PORT ORCHARD, WASHINGTON, REPEALING RESOLUTION NO. 173S AND ESTABLISHING AN UPDATED WATER LEAK POLICY WHEREAS, since 1987, the City of Port Orchard has utilized a water leak policy, a vehicle that allows customers to request an adjustment to unusually high water bills caused by verified, unintentional leaks; and WHEREAS; the original policy was adopted by the City Council via Resolution No. 1469, and later repealed and replaced by Resolution 1735 in 1996; and WHEREAS, the City has recently audited the policy and identified modifications that will best serve the City's water customers and address the City's fiscal responsibilities as a utility purveyor; and WHEREAS, the City Council finds it is in the best interests of the City to adopt the updated Water Leak Policy as set forth herein; now, therefore, THE CITY COUNCIL OF THE CITY OF PORT ORCHARD, WASHINGTON, HEREBY RESOLVES AS FOLLOWS: Section 1. Repealer. Resolution No. 1735 is herein repealed. Section 2. Adoption. The City adopts the following Water Leak Policy: The City of Port Orchard will adjust an individual water bill in the following circumstances: When the City staff suspects a water leak, the customer shall be notified in a timely manner. If the customer investigates their water system and discovers there is a leak and fixes it, then the City Finance Director may adjust the water bill. The City Finance Director may waive up to 75% of the water utility bill associated with the cost of the wasted water. Wasted water is defined as that amount of water that the City estimates to have been used in excess of normal consumption for that particular account. 1. The following conditions shall be met before the water bill will be considered for adjustment: A. The water leak has been verified by the City. B. Once notified by the City or found sooner, the customer fixes the leak in a timely manner. F F F�I:I1�;S �I ��.77 7�x�lIlIly I Page 96 of 132 Resolution No. Page 2 of 2 C. The customer requests a leak credit in a timely manner and reports the corrective action taken. 2. This policy only pertains to City inspected interior plumbing, outdoor service lines, irrigation systems and water systems for established marinas. 3. Excluded from leak credits are excessive outdoor water consumption and excessive tenant water consumption. 4. No account may be adjusted more than once every twelve months. If the water customer does not agree with the decision of the City Staff, the customer may appeal the City Staff decision to the City Council. 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 April 2026. Robert Putaansuu, Mayor ATTEST: Brandy Wallace, MMC, City Clerk 05IM11111171a=%i: IM111AyI Page 97 of 132 City of Port Orchard ORCHARD 216 Prospect Street, Port Orchard, WA 98366 (360) 876-4407 • FAX (360) 895-9029 Agenda Staff Report Business Items: 7.D. Adoption of a Resolution Establishing the Downtown Building Refacing Grant Policy (Archer) Meeting Date: April 28, 2026 Presenter: Charlotte Archer, City Attorney Summary and Background: The City Council has been exploring ways to enhance the downtown commercial core, including ways to revitalize Bay Street by improving the appearance, durability, and long-term value of existing commercial buildings. Council previously provided direction to develop a grant program, consistent with the City of Auburn's Facade Improvement Grant program, which has been in operation since 2016, to provide facade improvement grants to facilitate exterior building improvements for properties with street frontage on Bay Street between Fredrick Avenue and Harrison Avenue, which are highly visible and a key portion of historic downtown. These property upgrades will improve the area's overall visual appearance and as a result, attract business, visitors and residents. In response to direction from Council, staff developed a policy for the program, setting forward eligibility criteria, matching requirements, and the scope of a required contract for grant recipients. Implementation of the program would be delegated to the Department of Community Development, in conjunction with the Finance and Public Works Departments. The draft policy was reviewed by the Finance Committee on April 21, 2026, and the full City Council at its April 21, 2026, work study session. Council feedback from those meetings were integrated into the draft policy. Relationship to Comprehensive Plan: 6 - Economic Development Recommendation: This is a Council -led program. Motion for Consideration: I move to adopt a resolution establishing the Downtown Building Refacing Grant Policy. Has item been presented to Committee/Work Study? Yes Page 98 of 132 If so, which one: Work Study, April 21, 2026. Fiscal Impact: This program has been allocated $100,000 in the current budget. Alternatives: Do not adopt and provide alternative guidance. Attachments: 1. Resolution _Downtown_Building_Refacing_Program_11226139.1_ 2. Downtown_Building_Refacing_Grant_Program= _Policy_11226881.1_ Page 99 of 132 RESOLUTION NO. A RESOLUTION OF THE CITY OF PORT ORCHARD, WASHINGTON, ESTABLISHING THE DOWNTOWN BUILDING REFACING GRANT POLICY; ESTABLISHING PARAMETERS FOR GRANT PROGRAM AND DIRECTING MAYOR TO ACT TO IMPLEMENT WHEREAS, the City of Port Orchard recognizes that a vibrant and economically resilient downtown core is essential to the community's overall health, identity, and economic vitality; and WHEREAS, a well -maintained and visually appealing downtown along our showcase waterfront contributes to increased foot traffic, business activity, and community pride; and WHEREAS, the downtown corridor features older, historic buildings that, due to the decline in property maintenance and passage of time and weather, need exterior improvements, including fagade repairs, accessibility improvements, and related enhancements to restore these historic buildings and enhance the City's downtown, as the decline of property maintenance leads to impaired economic development in the city and undermines and limits the tax base; and WHEREAS, the physical deterioration and/or age or obsolescence buildings in this area, including some unsanitary or unsafe conditions, and existing conditions that endanger life or property by fire or other causes, constitute an economic and social liability that can be detrimental to the public; and WHEREAS, targeted building improvements can serve a valid public purpose by promoting economic development, supporting small businesses, and enhancing the overall appearance and functionality of the downtown area; and WHEREAS, the City of Port Orchard has authority under Washington law, including but not limited to its police powers and economic development authority, to promote community and economic development; and WHEREAS, the City of Port Orchard desires to establish a competitive grant program to provide financial assistance to eligible property and business owners for qualifying exterior improvements within the designated downtown area, with a matching requirement; and WHEREAS, the City Council appropriated $100,000 for use for downtown revitalization efforts, and desires to designate that funding for the grant program, available on a first -come, first -serve basis for grant applicants; and FIII XIMKIAMUTO IPM111113I Page 100 of 132 Resolution No. Page 2of2 WHEREAS, the City Council discussed the program and its parameters at its regular meetings in February, March and April, 2026, and reviewed the draft policy at its work study on April 21, 2026; and WHEREAS, the City Council finds that the public will receive a significant benefit from the program and it is in the best interests of the City to adopt this program; now, therefore, THE CITY COUNCIL OF THE CITY OF PORT ORCHARD, WASHINGTON, HEREBY RESOLVES AS FOLLOWS: THAT: Findings Adopted. 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: Program Enactment. The City Council approves of the City of Port Orchard Building Refacing Grant Policy and directs the Mayor or the Mayor's designee to take all necessary steps to implement this action, including the development of procedures and other documents consistent with the Policy. 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 day of 2026. Robert Putaansuu, Mayor ATTEST: Brandy Wallace, MMC, City Clerk FIIJFZI.jNIA MUTONI PPM11+A3I Page 101 of 132 City of Port Orchard Building Refacing Grant Program Purpose: The City of Port Orchard has historic and unique buildings, as well as many unique and thriving businesses. The Downtown Building Refacing Grant Program is intended to revitalize Bay Street by improving the appearance, durability, and long-term value of existing commercial buildings. This program provides a structured, incentive -based approach to encourage facade improvements while preserving the historic character of downtown. This program serves multiple public purposes, including downtown revitalization, economic development, improved pedestrian experience, and enhancement of the visual character of the community. The Downtown Revitalization Grant Program seeks to preserve and enhance the charm of the City's downtown, waterfront commercial area through strategic physical improvements to buildings. This program is designed to create immediate, visible improvements to downtown Port Orchard while minimizing financial barriers. The goal is to encourage investment in the community and enhance the Bay Street experience. This program is modeled after the City of Auburn's Facade Improvement Grant program, which has been in operation since 2016. Program Details: Through the Downtown Building Refacing Grant Program, the City will provide facade improvement grants to facilitate exterior building (facade) improvements for properties within a designated Business Improvement Area (BIA) in 2026. This BIA is defined to include buildings with street frontage Bay Street between Fredrick Avenue and Harrison Avenue, which are highlyvisible and a key portion of historic downtown. These property upgrades will improve the area's overall visual appearance and as a result, attract business, visitors and residents. The primary goal of the grants will be to improve the appearance of the City's commercial core. 1. ELIGIBILITY CRITERIA Eligibility Requirements: Eligible applicants are limited by the following parameters: • Commercial or mixed -use buildings, and the applicant shall be the Property owner(s) or Business lessee with written authorization of the property owner; • Propose a refacing project that shall meet code requirements, follow all local and state laws, and follow all current design standards; FFi��IMNa=%i:� IM111I1FI Page 102 of 132 • Project site must be within the Business Improvement Area, located within the Downtown Bay Street area (along Bay Street between Fredrick Avenue and Harrison Avenue); • No existing legal restrictions on property; • Qualifying facades must be visible from Bay Street, and improvements utilizing grant fundings are limited to primary street -facing elevations; • Work must begin within 30 days of permit issuance and work must be completed within 60 days Applicants as follows are ineligible for grant program: • Business with more than 25 full-time employees • Government office and agency (non -governmental tenants are eligible) • Newly constructed building (constructed after the adoption of this program) Types of Improvements Eligible for Grant Funding: Eligible grant applications shall be limited to those seeking to perform eligible work, using eligible materials, as follows: • Brick and Stone Masonry - Structural repairs, cleaning, repointing, and resurfacing • Architectural Metals - Repair, cleaning, refinishing, painting, duplication, and restoration of exterior building components, e.g., cast iron, pressed tin • Doors and Windows - Maintenance, repairs, replacement, and restoration of window sashes, exterior doors, and installation of storm windows in conjunction with other significant fagade improvements • Exterior Carpentry - Maintenance, repair, rehabilitation and restoration of sills, window and door frames, bulkheads, storefront and roof cornices, window hoods, and decorative molding • Storefronts - Removal of coverings and additions, maintenance, repair, rehabilitation, restoration of display and transom windows, and lighting • Painting - Surface preparation, cleaning and painting • Awnings -Maintenance, installation, repair, or replacement of awnings. Awnings to be replaced must show considerable wear as determined by the City Building Official. • Exterior Lighting— Installation, retrofitting, replacement • Handicapped Access Projects - Ramps, thresholds, entrances (only in conjunction with other design improvements) • Murals Or Other Permanent, Affixed Art Work— based on review and approval FFi XI-1.13a=DWY1�mlifilFI Page 103 of 132 • Approved Materials must be consistent with the requirement of Port Orchard Municipal Code 20.127.450. Examples of Approved Materials (with emphasis for durability amid waterfront environmental conditions): o Hardie Board Siding (or comparable fiber cement siding) ■ Durable and long-lasting ■ Low maintenance ■ Structurally stable o Masonry Stone Veneer ■ Highly durable and weather -resistant ■ Strong visual enhancement ■ Cost-effective design impact ■ Supports long-term return on investment o Exterior Paint ■ Approved for fapade enhancement and finishing ■ Must be high -quality, weather -resistant coatings ■ Encouraged to use historic coastal color palettes consistent with port communities —see Port Townsend Historic District palette recommended as inspiration ■ Typical palette includes muted earth tones, coastal blues/greens, creams, ivories, and soft whites ■ Coordinated color schemes encouraged o Shutters (Vinyl, Composite, PVC) ■ Approved as architectural accents ■ Composite and PVC preferred for durability and low maintenance Ineligible work that cannot be proposed for grant funding is as follows: • New building construction • Additions to existing structures • Proprietary signage and billboards • Any interior work or decoration • Non -fabric awnings • Non -permanent fixtures (i.e. freestanding planters, stands, holders) • On -site or off -site paving • Public sidewalk repair/restoration/replacement • Payment for the applicant's own labor and performance for improvements • Purchase of furnishings, equipment, or other personal property FFi XI-1.13a=%i: IMIIII1LI Page 104 of 132 • Repair or creation of features not compatible with the original architecture or that are artificial in appearance • Roof repairs/replacements • Structural foundations • Shipping costs Project Categories and Associated Grant Matching: To ensure shared investment and maximize the public benefit of Program funds, all grants shall require a matching contribution from the applicant, structured in proportion to the scope, impact, and cost of the proposed project, as follows: • Small -Scale Projects. For projects with a total eligible project cost of up to $5,000, the applicant shall not require a matching. Most of these projects should not require stamped construction documents provided by an independent architect or engineer. These projects focus on immediate, eye-catching changes, such as painting, decorative lighting, or trim. • Mid -Scale Projects. For projects with a total eligible project cost between $5,001 and $25,000, the applicant shall provide a minimum match of thirty (30) percent of total project costs. Improvements in this category are likely to require professional design services (architectural or engineering), and will require graduated matching contributions (cash, loan, and in -kind contributions) from the property and/or business owner(s). These improvements include window, door, or storefront upgrades; masonry work; fagade material upgrade or change (could include framing); and significant lighting upgrades; significant carpentry/molding/trim improvements. • Large -Scale Projects. For projects with a total eligible project cost greater than $25,001, the applicant shall provide a minimum match of at least fifty (50) percent of total project costs. Improvements in this category are likely to require professional design services (architectural or engineering), and will require graduated matching contributions (cash, loan, and in -kind contributions) from the property and/or business owner(s). These improvements include facade restoration; significant structural or electrical work (needed to execute a fagade design); significant historic restoration; and complete fagade re-design/re- construction. Form of Match. The applicant match may consist of loan, cash expenditures or documented in -kind contributions directly related to the approved project, as defined in Program guidelines, provided that in -kind contributions shall not exceed seventy-five (75) percent of the total required match. Page 105 of 132 • Evidence of the loan must be provided to complete the application. • Cash must be paid either up front or on a pre -established schedule concurrent with construction and agreed upon bythe City and contractor. These monies must be paid in advance of City funding, unless the City agrees to pay for materials in advance of construction. Graduated Matching For Mid- and Large -Scale Projects: These projects will work under a graduated scale; as the budget increases, the matching contribution responsibility gently shifts toward the business or property owner. The match can be in the form of a loan, cash, or in -kind contribution. Verification: All matching contributions must be documented to the satisfaction of the City prior to reimbursement of grant funds. Adjustment Authority The Director may adjust match requirements on a case -by -case basis, consistent with Program guidelines, to advance Program objectives, including support for small businesses, historically underserved applicants, or projects with exceptional public benefit. 2. APPLICATION AND DOCUMENTATION PROCESS Application and Design Process: 1. Contact Department of Community Development expressing interest in program; 2. Schedule informational visit and preliminary assessment; 3. Download forms from the Department of Community Development; 4. Based on initial assessment, applicant shall: • Develop Cost Estimate • Procure Architect with own resources • Work with design professional(s) and technical assistance to prepare application materials 5. Submit application to Department of Community Development 6. After determining completeness, application will be reviewed by committee 7. Final approval will be given by City Council, and a letter will be sent to applicant 8. Grant recipient will execute associated agreements consistent with the program. Construction Process FF"XIMNa=%i: IMIIII1FI Page 106 of 132 1. Owners and Contractors must sign contracts with the City; at the time of contract execution, all files will be reviewed for compliance with legal, licensing, and liability concerns 2. Notice to proceed will be issued 3. Contractor and/or business owner must apply for permits 4. Materials may be purchased prior to construction 5. Construction may begin after permits are issued 6. Final inspection by Public Works and/or Building Divisions 7. Payment will be issued upon submittal of invoices, with final payment available after satisfactory completion of project Required Grant Agreement for Recipients: As a condition of receiving grant funds, each recipient shall enter into a written agreement with the City of Port Orchard to document the public services to be performed by the grant recipient as a result of the grant funding, in a form approved by the City Attorney, which shall: 1. Public Purpose. Identify the public purpose served by the funded improvement(s), including but not limited to downtown revitalization, economic development, improved pedestrian experience, and enhancement of the visual character of the community; 2. Scope of Work. Describe the approved improvements and require that funds be used solely for eligible expenses consistent with Program requirements; 3. Performance Requirements. Establish deadlines for completion and require compliance with all applicable laws, codes, permits, and design standards, including but not limited to: • Permits and Compliance: Right-of-way permit required for work impacting sidewalks, streets, or pedestrian areas; Electrical work requires Washington State L&I permit; sidewalk closure or protection may be required for overhead work (with proper permitting, including State of Washington • Inspections and Oversight: Pre -construction meeting required to review scope and permits; final inspection required; and City sign -off required prior to reimbursement FFi XI-1.13a=%i:� IM111I1)I Page 107 of 132 • Contractor Responsibilities: Shall be licensed and bonded; shall Identify and document necessary repairs prior to construction; and Ensure compliance with codes and program standards 4. Reimbursement and Documentation. Provide that grant funds are disbursed on a reimbursement basis (unless otherwise authorized) upon submission of invoices, proof of payment, and verification of completed work; 5. Maintenance and Use. Require the recipient to maintain the improvements in good condition for a specified period of time and to use the property in a manner consistent with the Program's public purpose; 6. Repayment/Clawback. Requiring partial or full repayment of grant funds if the recipient fails to complete the project, violates the terms of the agreement, or ceases to use or maintain the improvements consistent with the public purpose within a defined period; 7. Permitting, Access and Inspection. Comply with all applicable permit requirements, and allow the City reasonable access to the property for inspection and verification of compliance; and 8. Other Terms. Include such other terms and conditions as the City deems necessary to ensure that the expenditure of public funds complies with Washington law. Program Administration. The Program shall be administered by the Department of Community Development or their designee, who is authorized to: • Develop application materials and administrative guidelines; • Establish evaluation criteria and scoring procedures; • Review and approve grant applications; • Execute grant agreements; and • Ensure compliance with applicable laws and Program requirements. Projects will be reviewed by City staff for eligibility, compliance, and consistency with downtown character. Final approval is required prior to project start. FFi XI-1.13a=%i:� IM111I1FI Page 108 of 132 City of Port Orchard ORCHARD 216 Prospect Street, Port Orchard, WA 98366 (360) 876-4407 • FAX (360) 895-9029 Agenda Staff Report Business Items: 7.E. Approval of Amendment No. 2 to Contract C063-25 with Active Construction for the Sidney Road Non -Motorized Project (Ryan) Meeting Date: April 28, 2026 Presenter: Denis Ryan, Public Works Director Summary and Background: The City executed Contract No. C063-25 with ACI for construction of the Sidney Non -Motorized Improvements Project. During installation of the project's sanitary sewer force main, ACI encountered substantial delays due to an unforeseen condition associated with a separately installed adjacent sanitary sewer trench completed prior to the City's project. As ACI excavated for the City's force main, the adjacent trench wall consistently sloughed and collapsed into ACI's trench, creating instability in the roadway and making steel plating unsafe during construction. As a result, ACI was required to backfill the trench each evening and re -excavate every morning to maintain safety and access. These conditions required ACI to change construction methods and materials from continuous welded pipe to the daily installation of fusion couplings using specialized equipment. This reduced production rates and extended the duration of work. The contractor has submitted costs for labor, equipment, and materials associated with these delays. ACI will be granted 7 working days for delays resulting from the deficient adjacent trench condition and an additional 5 working days for schedule impacts caused by another contractor working concurrently on Sidney Road, which required ACI to reorganize and reprioritize alternate portions of the work. In total, 12 additional working days are included in this change order. Change Order No. 2 increases the contract amount by $87,406.81, resulting in a new total contract amount of $2,839,995.77, and extends the contract time by 12 working days. Relationship to Comprehensive Plan: 7 - Utilities Recommendation: Staff recommends the Council authorize the Mayor to execute Change Order No. 2 to Contract No. Page 109 of 132 C063-25 with ACI for the Sidney Non -Motorized Improvements Project to increase the contract amount and grant 12 additional working days. Motion for Consideration: I move to authorize the Mayor to execute Change Order No. 2 to Contract No. C063-25 with ACI for the Sidney Non -Motorized Improvements Project, increasing the contract amount by $87,406.81 for a new total contract amount of $2,839,995.77, and granting an additional 12 working days. Has item been presented to Committee/Work Study? No If so, which one: Fiscal Impact: This change order increases the contract amount by $87,406.81, bringing the revised total contract amount to $2,839,995.77. This change order is budgeted under 433.05.594.35.60. Alternatives: Do not approve and provide further guidance. Attachments: 1. Change Order No. 2 2026-04-17 Page 110 of 132 CITY OF PORT ORCHARD Authorization for Change Order No. 2 Date: 04/17/26 Contractor: Active Construction, Inc. Sidney Rd. Non -Motorized Imp. Project: Project 5110 River Rd E. Contract / Job # C063-25 Tacoma, WA 98443 THIS CHANGE ORDER AUTHORIZES (add description). ACT's installation of the Sidney Non -Motorized Improvements project's sanitary sewer force main has encountered delays as a direct result of an adjacent trench for a separately installed sanitary sewerjust prior to the City's project. The adjacent trench backfill was unsuitable native material that was proven to not meet WSDOT material specifications. Meeting these material specifications was a requirement by that developer/contractor's City of Port Orchard permit conditions. During the trenching by ACI for the City's project, the adjacent trench wall consistently sloughed and fell into ACT's trench. Additionally, this condition made it unsafe to plate the roadway during construction due to instability of the roadway related to the adjacent trench. For this reason, ACi had to backfill every evening and excavate to expose the pipe every morning. This led to a required change to the construction methods and materials required when compared to the original project scope. instead of being able to weld the pipe directly, ACi had to install fusion couplings every day utilizing a specialized fusing machine. For the above reasons, ACI experienced delays related to the amount of pipe per day that could be installed. The attachments include information on labor, equipment, and material costs that are associated with these delays. Additionally, ACI will be granted 7 working days for these delays. An additional 5 working days are being granted due to the other contractor working on Sidney Road, forcing ACI to reorganize and prioritize other portions of the work along Sidney Ave. in total, 12 additional working days will be granted in association with this change order. Change Order #2 Totals- S87,406.81 including tax. See attachments for additional details. I Contract History Amount Sales Tax Total Date Appvd b Original Contract $2,653,782.44 $70,941.56 $2,724,724.00 22-Jul-25 Council Change Order 1 $26 492.85 $1 372.11 $27 864.96 29-Dec-25 PW Director Change Order 2 $86 674.84 $731.97 $87 406.81 28-Apr-26 Council Total Contract $2 766 950.13 $73 045.64 $2 839 995.77 have reviewed the Change Order informatgn above and certify that to the best of my knowledge descriptions and costs are true and accurate. nt Printed Name & Title Sig Public Works Director Printed Name Change Orders that do not exceed 10%, with a maximum of $50,000, of either legally authorized budget limit or contract Approved: amount established by City Council can be approved by the Public Works Director. Change Orders that do not exceed 10%, with a maximum of Attest: $100,000, of either legally authorized budget limit or contract amount established by City Council are to be approved by the Mayor. Change Orders over $100,000 or exceed a total of 10% require Council Action. Mayor City Clerk Council Approval Date Page 111 of 132 ACTIVE ACI CONSTRUCTION INC 4/15/2026 Christian Williams City of Port Orchard 216 PROSPECT STREET PORT ORCHARD, WA 98366 Re: Project: SIDNEY ROAD NON -MOTORIZED IMPROVEMENTS Owner CITY OF PORT ORCHARD Subject: Delays & additional materials due to existing adjacent trench conditions. Christian, As discussed, documented, and witnessed by COPO staff, our utility crews have consistently encountered road and trenching instability issues as a direct result of the condition of the existing trench adjacent to ours. These conditions have resulted in the following additional costs. • Crews have had to install additional couplers every day due to trench instability. ACP s intent was to plate the trench at the end of every workday. Due to the instability created by the existing adjacent trench we were unable to complete our work plan as estimated. Crews had to install couplers and backfill the trench completely at the end of every workday. o ACI is requesting full compensation for the cost of these materials, electric fusion couplers, and fusion machine. • Additionally, with the added work and loss of production due to the existing adjacent trench, we are requesting (14'/2) additional workdays to be added to the schedule. o ACI estimated 125 LF per day, equaling a total of (32) workdays. o Due to unforeseen existing conditions, the crews averaged 95 LF per day, equaling a total of (45 '/2) workdays. • ACI is requesting full compensation for the delays associated with the existing trench conditions. These are, but are not limited to, crew time and flagger hours. ACTIVE CONSTRUCTION, INC. (Authorized Signature) Benjamin Kent - Superintendent (Name & Title) -il 15, 2026 (Dated) PO BOX 430 PUYALLUP, WA 98371 PHONE (253) 248-1091 FAX (253) 248-1092 www.activeconstiuction.com AC-TI-WI-164-K AClisan Equal Employment Opportunity Employer" Page 112 of 132 ACTIVE ACICONSTRUCTION ADDITIONAL WORK SUMMARY INC. A.C.I. SIDNEY ROAD NON -MOTORIZED IMPROVEMENT PROJECT A.C.I. PHASE PROJECT CODE 25-031 DATE WORK PERFORMED: DESCRIPTION OF WORK Additonal Labor, equiptment, materials and rentals, to install added HDPE couplers (34). Additional labor,equiptment, (change in means & methods) backfill daily in lieu of road plates. This is equivillant to (1) Foreman, (2) Laborers, (4) Operators, and (4) Flaggers. Materials charged, are only for addtional work, other gear shown is contracual. This includes all fusion machines and couplers. MANPOWER HOURS @ RATE TOTAL FOREMAN 40.0 @ $93.15 $3,726.00 LABORER 80.0 @ $76.84 $6,147.20 OPERATOR 160.0 @ $88.78 $14,204.80 FLAGGER 160.0 @ $60.11 $9,617.60 SUBTOTAL LABOR $33,695.60 EQUIPMENT DESCRIPTION / RATES EQUIP. NO. EQUIPMENT DESCRIPTION HOURS @ RATE TOTAL 273 Onsite truck 32.0 @ $31.87 $1,019.84 279 650J Dozer 20.0 @ $64.50 $1,290.00 535 JD 644 Loader 52.0 @ $82.47 $4,288.44 576 225D Excavator 44.0 @ $102.92 $4,528.48 610 Dynapac Roller 12.0 @ $34.61 $415.32 SUBTOTAL EQUIPMENT $11,542.08 MATERIAL COSTS DESCRIPTION UNIT @ RATE TOTAL Couplers & Fusion Machine 1.00 @ $23,609.66 $23,609.66 SUBTOTAL MATERIALS $23,609.66 SERVICE COSTS DESCRIPTION UNIT @ RATE TOTAL SUB CONTRACTOR DESCRIPTION UNIT @ RATE TOTAL MARK-UP ON LABOR 31% $10,445.64 SUBTOTAL LABOR $44,141.24 MARK-UP ON EQUIPMENT 21% $2,423.84 SUBTOTAL EQUIPMENT $13,965.92 TAX ON MATERIALS (N/A ON WATER & SEWER) 9.30% $731.97 MARK-UP ON MATERIALS 21 % $4,958.03 SUBTOTAL MATERIALS $29,299.66 GRAND TOTAL $87,406.81 Note: Page 113 of 132 H.D. FOWLER COMPANY REMIT: PO Box 84368. Seattle. WA 98124 Invoice Number 17236463 KRWH # 011500 To Corporate Office 3633 136th PI SE. Ste 100, Bellevue. WA 98006 PO Box 160, Bellevue. WA 98009-0160 Phone 425-654-8800 ` Fax 425-641-8885 Service Warehou Branch Bellevue. WA 98005 Fax (none) Ship to: 500 SIDNEY AVE 1/1 T-0 ACTIVE CONSTRUCTION CO PO BOX 430 PUYALLUP WA 983710162 PORT ORCHARD WA 983679999 Order# 08768464 Inv Date: 02/12/26 Order Writer: Ethan Smith Due: 03/10/26 Ship via: SALESPERSON DELI POIJOB: 25-031 ERY031 SIDNEY ROAD SEWER MAI Terms: NET 10TH PROX FOB: H. D. FOWLER COMPANY Qty Qty Line Ship'd BO'd Part # UoM Description EA MSFM412 DAILY RATE OF 412 FUSION MACHINE Unit Price Extended T Price X 1200.000 9600.00 Y 2 8 0 (4"-12") FUSION MACHINE" WEEKLY RATE OF 412 3 8 0 FUSION MACHINE " EA MSFMBEADSML DAILY RENTAL SMALL DIAMETER 600.000 4800.00 Y DE-BEADER 3"-12" DE -BEADING HEADS, INCLUDES j 1 0 POLES" 10" DEBEADER W/ POLE KIT " EA MSOUT CHECKOUT OF RENTAL ITEM " 12-9-25 0.000 0.00 BEGIN RENTAL OF 412-001 W/ 1-" IPS INSERTS " RECEIVED Eb 13 2026 ACI Serving the Pacific Northwest since 1911 MIKE�ANS www.hdfowler corn Terms 8 Conditionshdfowler com/tcs Sub total Freight Tax Grand Total 14,400.00 0.00 1,339.20 15,739.20 Page 114 of 132 cow ; INVOICE Ei 1830 Craig Park Court St. Louis, NO 63146 ACTIVE CONSTRUCTION, INC. 000/0000 ACCOUNTS PAYABLE 00000 PO BOX 430 PUYALLUP WA 98371 0162 Invoice # Invoice Date Account # Sales Rep Phone # Branch #302 Total Amount Due X827407 12/03/25 114482 JOHNNY SPENCER 253-840-8558 Puyallup, WA $18,149.46 Remit To: CORE 6 MAIN LP PO BOX 28330 ST. LOUIS, MO 63146 Shipped To: SIDNEY RD SW & SW HOVDE RD PORT ORCHARD, WA CUSTCMER JOB- 25-031 SIDNEY NMI SIDNEY RD NMI Thank you for the opportunity to serve your We appreciate your prompt payment. Date Ordered Date Shipped Customer PO # Job Name Job # Bill of Lading Shipped Via Invoice# 9/28/25 12/02/25 SEE BELOW SIDNEY NMI 25-031 CORE & MAIN LP X827407 Product Code 0941P1011 0941F101122 398 09100SEFIPS 0941M1011FA 0941BUR1011DI Description Quantity Ordered Shipped B/O CUSTOMER PO#- 25-031 HDPE MAT'L 10 IPS DR11 HDPE PIPE 200 PSI 10" 4100 SDR11 IPS PE 22-1/2 #8 COPPER SPLIT BOLT CONNECTOR 10 IPS ELECTROFUSE CPLG BLK 10 4100 SDR11 IPS PE FLG ADP 10" SDR11 DI IPS BACKING RING RECEIVED DEC 4 ACI 3440 1000 2440 Price UM Extended Price 15.54000 FT 15,540.00 10 10 105.73000 EA 1,057.30 9 9 3.03000 EA 27.27 1 1 231.49000 EA 231.49 4 4 44.19000 EA 176.76 4 4 29.16000 EA 116.64 Freight Delivery Handling Restock Misc Subtotal: 17,149.46 Other: 1,000.00 Tax: .00 $1,000.00 Terms: NET 30 Iavoice Total: $18,149.4 Ordered By: MIRE E - HDPE MAT This transaction is governed by and subject to core 4 Wain's standard terms and conditions, which are incorporated by reference and accepted. To review these terns and conditions, p-ease visit: httpa://coroa ds-in.cm/terms-of-sals/ Page: 1 Page 115 of 132 Invoice # Invoice Date CORE ' INVOICE Account # Sales Rep Phone # Branch #302 1830 Craig Park Court Total Amount Due St. Louis, No 63146 Remit To: CORE 6 MAIN LP PO BOX 28330 ST. LOUIS, MO Shipped To: ACTIVE CONSTRUCTION, INC. 000/0000 CUSTOMER PICK-UP ACCOUNTS PAYABLE 00000 PO BOX 430 PUYALLUP WA 98371 0162 Y264813 12/22/25 114482 JOHNNY SPENCER 253-840-8558 Puyallup, WA $2,314.90 63146 CUSTOMER JOB- 25-031 SIDNEY NMI SIDNEY RD NMI ----------- Thank you for the opportunity to serve youl we appreciate your prompt payment. Date Ordered Date Shipped Customer PO # Job Name Job # Bill of Lading Shipped Via Invoice# 12/12/25 12/16/25 SEE BELOW SIDNEY NMI 25-031 WILL CALL Y264813 Product Code 09100SEFIPS Description CUSTOMER PO#- 25-031 FUSION COUPLG 10 IPS ELECTROFUSE CPLG BLK RECEIVED DEC 2 3 N25 ACI Quantitv Ordered Shipped B/O 10 -- Price UM Extended Price 231.49000 EA -" Subtotal: 2,314.90 Freight Delivery Handling Restock Miec Other: .00 Tax: .00 Terms: NET 30 Invoice Total: $2,314.90 Ordered By: MIKE EVANS This transaction is governed by and subject to Core i Hain-s standard term and conditions, which are incorporated by reference and accepted. To review these term and conditions, please visit: httpss//coreandmain.coa/term-of-sale/ Pace: - 0000C Page 116 of 132 cow ; INVOICE 1830 Craig Park Court St. Louie, MO 63146 ACTIVE CONSTRUCTION, INC. 000/0000 ACCOUNTS PAYABLE 00000 PO BOX 430 PUYALLUP WA 98371 0162 Invoice # Invoice Date Account # Sales Rep Phone # Branch #302 Total Amount Due Y329333 1/06/26 114482 JOHNNY SPENCER 253-840-8558 Puyallup, WA $2,314.90 Remit To: CORE & MAIN LP PO BOX 28330 ST. LOUIS, NO 63146 Shipped To: SIDNEY RD SW & SW HOVDE RD PORT ORCHARD, WA CUSTOMER JOB- 25-031 SIDNEY NMI SIDNEY RD NMI ------------------ ----------------Y _______' Thank you for the opportunity to serve youl we appreciate our prospt f Lpayment- Date Ordered Date Shipped Customer PO # Job Name Job # Bill oCORE & MAIN LP Y329333 12/31/25 1/C5/26 SEE BELOWS=DNEY NMI 25-031 Product Code 09100SEFIPS Description _ Quantity Ordered Shipped B/O CUSTOMER PO#- 25-031- 10 HDPE CPLG 10 IPS ELECTROFUSE CPLG BLK RECEIVED U 7 2 JLh ACI 10 Price UM Extended Price 231.49000 EA 2,314.90 Misc Subtotal: 2,314.90 Freight Delivery Handling Restock Other: .00 Tax: .00 Terms: NET 30 Invoice Total: $2,314.90 Ordered By: MIKE 8 - 10 HDPH CPLGS o Cora i Naln's ■tandard urea and conditianm, which are incorporated by reference and accepted.Thi• tranasccion is governed by and subject tCoe tarn and, anconditions. please visits bttpa,//coreendnain.con/terms-ol-male/ To revive Page: 1 :0000 Page 117 of 132 @OREIINVOICE 1830 Craig Park Court St. Louis, Xo 63146 Invoice # Invoice Date Account # Sales Rep Phone # Branch #302 Total Amount Due Y441419 1/30/26 114482 JOHNNY SPENCER 253-840-8558 Puyallup, WA $23,535.05 Backordered from: Remit To: CORE & MAIN LP 12/03/25 X827407 PO BOX 28330 ST. LOUIS, NO 63146 Shipped To: ACTIVE CONSTRUCTION, INC. 000/0000 SIDNEY RD SW & SW HOVDE RD ACCOUNTS PAYABLE 00000 PORT ORCHARD, WA PO BOX 430 PUYALLUP WA 98371 0162 CUSTOMER JOB- 25-031 SIDNEY NMI SIDNEY RD NMI Y ----Y--- you for the opportunity Thank rtunit Y to serve oL! We appreciate your prompt payment. Date Ordered Date Shipped Customer PO # Job Name Job # Bill of Lading Shipped Via Invoice• 9/28/25 1/29/26 SEE BELOW SIDNEY NMI 25-C-: CARE & MAIN LP Y441419 Quantity Product Code Description Ordered Shipped B/O Price UM Extended Price CUSTOMER PO#- 25-031 HDPH MAT'L 0941PI011 10 IPS DR11 HDPE PIPE 200 PSI 09100SEFIPS 10 IPS ELECTROFUSE CPLG BLK RECEIVED ACI 144. ,4 15.54000 FT 22,377.60 231.49000 EA 1,157.45 Handling Restock Misc Subtotal: 23,535.05 Freight Delivery g Other: .00 Tax: .00 Terms: NET 30 Invoice Total: $23,535.05 ordered By: MIKE E - HDPE MAT This transaction is governed by and subject to Core 4 Main,a standard terse and conditions, rhich are incorporated by reference and accepted. To review these terms and conditions, please visit: https://coraandmain.com/terms-of-sale/ Page: 1 0000c Page 118 of 132 •- a -, 8cMA1N 19 V M 1830 Craig Park ':Cult St. Louis. NO 63146 ACTIVE CONSTRUCTION, INC. 000/0000 ACCOUNTS PAYABLE 00000 PO BOX 430 PUYALLUP WA 98371 0162 Invoice # Invoice Date Account # Sales Rep Phone # Branch #302 Total Amount Due Remit To: CORE & MAIN LP PO BOX 28330 ST. LOUIS, MO Y561415 2/24/26 114482 JOHNNY SPENCER 253-840-8558 Puyallup, WA $694.47 63146 Shipped To: SIDNEY RD SW & SW HOVDE RD PORT ORCHARD, WA CUSTONn JOB- 25-031 SIDNEY NMI SIDNEY RD NMI ---------------------------------------------------------------•----------•------------ Thank you for the opportunity to serve youl we appreciate your prompt payment. Date Ordered Date Shipped Customer PO # Job Name Job # Bill of Lading Shipped Via Invoice# 2/18/26 SEE BELOW IDNEY NMI ---^31 CORE & MAIN LP Y561415 Product Code Description CUSTOMER PO#- 25-031- HDPE MAT'L 09100SEFIPS 10 IPS ELECTROFUSE CPLG BLK RECEIVED •= E B 2 5 2026 ACI Quantity Ordered Shipped B/O 3 Price UM Extended Price 231.49000 EA Freight Delivery Handling Restock Hisc Other: •0O Tax: Terms: NET 30 ---__ _ -- -- _ - _ - - _ _ -_—� 694.47 Ordered By: MIKE E - BDPS MAT'L ';;_,=nVO1Ce Total: $ This transaction is governed by and subject to Core a Uaia'■ standard terse —4 Conditions, which are incorporated by reference and a-- . To review teese terra and conditions, please visit: httpa://CorOandeain.cm/terse-of-sale/ Page: 1 00000 Page 119 of 132 BcMQ�NINVOICE 1830 Craig Park Court St. Louis, 300 63146 ACTIVE CONSTRUCTION, INC. 000/0000 ACCOUNTS PAYABLE 00000 PO BOX 430 PUYALLUP WA 98371 0162 Invoice # Invoice Date Account # Sales Rep Phone # Branch #302 Total Amount Due Y511014 2/16/26 114482 JOHNNY SPENCER 253-840-8558 Puyallup, WA $1,157.45 Remit To _— - — - CORE 4 MAIN LP PO BOX 28330 ST. LOUIS, NO 63146 Shipped To: SIDNEY RD SW & SW HOVDE RD PORT ORCHARD, WA CUSTOMER JOB- 25-031 SIDNEY NMI SIDNEY RD NMI ----------------------------------------------------------------------------------------------------------------- Thank you for the opportunity to serve you! xe appreciate your prompt payment. Date Ordered Date Shipped Customer PO # Job Name Job # Bill of Lading Shipped Via Invoice# 2/12/26 25-031 SIDNEY NMI 25-131 CORE & MAIN LP Y511014 Quantity Product Code Description Ordered Shipped B/O Price UM Extended Price 09100SEFIPS 10 IPS ELECTROFUSE CPLG BLK RECEIVED EB 17 2026 ACI 231.49000 EA 1,157.45 Freight Delivery Handling Restock Misc Subtotal: 1,157.45 Other: .00 Tax: .00 Terms: NET 30 - - - - --- -- — ordered By: UM N. _ invoice Total: $1,157.45 This transaction is governed by and aub)act to Core i Wain's standard terse and conditions, which are incorporated by reference and accepted. To review these terse and conditions, please visit: httpa://coreandsnin. co./texas-of-sale/ - _ _ Page: _ Page 120 of 132 Page 121 of 132 Page 122 of 132 Date Length Completed (LF) Location Total Length of FM (LF) Total Working Days to Complete Average Length/Day (LF/Day) Assumed Length/Day (LF/Day) w/o Trench 2/18 119 South of NW Cascade Trench 3257 33 98.70 123.0 2/19 140 South of NW Cascade Trench 2/23 120 South of NW Cascade Trench # Working Days Req'd w/o Trench 2/24 120 South of NW Cascade Trench 26.48 2/25 120 South of NW Cascade Trench 2/26 120 South of NW Cascade Trench Total Working Days Lost Due to Trench 3/4 122 South of NW Cascade Trench 6.5 Average 123.0 Note: Above lengths completed south of the NW Cascade Trench area were used to find an average length per day when unaffected by NWC trench Note: Sewer force main installed during course of 33working days between 12/22 and 3/5. Page 123 of 132 City of Port Orchard ORCHARD 216 Prospect Street, Port Orchard, WA 98366 (360) 876-4407 • FAX (360) 895-9029 Agenda Staff Report Business Items: 7.F. Approval of a Professional Services Agreement for Legal Services for the City of Port Orchard Building Board of Appeals (Archer) Meeting Date: April 28, 2026 Presenter: Charlotte Archer, City Attorney Summary and Background: The City Attorney's office represents the City of Port Orchard in legal matters, including administrative legal matters internal to the City. For example, the City Attorney serves as legal counsel for the Community Development Department or Public Works Department when there is an appeal to the City's Hearing Examiner. Similarly, the City Attorney serves as legal counsel for the Chief of Police when there is an appeal to the City's Civil Service Commission. In those cases, the hearing body is entitled to separate, outside legal counsel, funded by the City, to ensure they receive independent legal guidance. The City currently funds an attorney to support the Civil Service Commission, and the City's Hearing Examiner is an attorney. The City has a Board of Building Appeals seated, pursuant to Port Orchard Municipal Code 20.200.008 and the State Building Code (International Building Code), Appendix B, Building Board of Appeals. The Board is an administrative body that can review certain challenges to decisions by the official. Under IBC B101.6, the City is obligated to furnish legal counsel to the Board to provide members with general legal advice concerning matters before them for consideration. Again, in the event there is an appeal to the Board of Appeals, the City Attorney would represent the City (Building Department) in that appeal and the Board would require outside legal counsel, funded by the City per IBC B101.6. The City has identified outside legal counsel from the law firm Ogden Murphy Wallace to serve as legal counsel for the Board of Appeals, on an on -call, as needed basis. Emily Romanenko is a member of the law firm, and her practice is exclusively to represent public agencies in Washington. Another attorney at OMW currently serves as legal counsel to the City's Civil Service Commission, so the City is familiar with OMW and the quality of their work. Relationship to Comprehensive Plan: N/A Recommendation: Staff recommends the City Council authorize a contract for legal services Page 124 of 132 for an attorney to advice the Port Orchard Building Board of Appeals. Motion for Consideration: I move to authorize the Mayor to execute a Professional Services Agreement with the law firm Ogden Murphy Wallace for special legal services. Has item been presented to Committee/Work Study? No If so, which one: N/A Fiscal Impact: The attorney hourly rate for Ms. Romanenko is $395 per hour. Alternatives: Do not authorize and provide alternative guidance. Attachments: Engage ment_Letter Page 125 of 132 OLDEN MUF�PHY WALLACE ATTORNEYS April 8, 2026 Robert Putaansuu Mayor City of Port Orchard 216 Prospect Street Port Orchard, WA 98366 Ogden Murphy Wallace, PLLC T 206.447.7000 OMWLAW.COM 701 Fifth Ave., Suite 5600 F 206.447.0215 Seattle, WA 98104-7045 EMILY ROMANENKO eromanenko@omwlaw.com Re: Engagement Letter for City of Port Orchard Building Board of Appeals Legal Counsel Dear Mr. Putaansuu: Thank you for considering our firm for the City of Port Orchard's Building Board of Appeals Legal Counsel. The purpose of this letter is to confirm our representation and to describe how our services would be provided. I will be your primary contact here at the firm for legal matters, but you should always feel free to contact any of the other attorneys that may work with City for assistance. Terms of Engagement In our representation of clients, we think it is critical that our clients and the firm share the same understanding of the attorney -client relationship. To that end, enclosed is a copy of our Standard Terms of Engagement. This engagement letter and the enclosed Standard Terms of Engagement set forth our agreement with you if you choose to proceed with our firm. Please review them carefully and, if you agree to both documents, please sign the enclosed copy of this letter where indicated and return it to us. Please let us know if you have any questions or comments regarding our relationship. If you have any questions, I am happy to work through them with you. Legal Fees You will be billed for our services on an hourly basis unless otherwise agreed in writing. Our present Member billing rate for municipal legal counsel services, which is subject to change, is $395.00 per hour. Associate attorney billing rate for municipal legal counsel services is $325 per hour. We are unable to provide a flat or fixed monthly rate for services at this time, as we do not know the extent of services required and, thus, propose to bill on a time expended basis. Advance Fee Deposit To Commence Representation We have waived the requirement of an advance fee deposit for our services. Page 126 of 132 Robert Putaansuu, Mayor City of Port Orchard Page 2 Supervising Attorney and Assistance As supervising attorney, I will be responsible for seeing that the work is carried out in an efficient and economical manner. I may be assisted by other attorneys and legal assistants in our office. They are all bound to you by the same duties of loyalty and confidentiality that bind me. Scope of Services Based upon our discussion of your business matters, you have requested that we provide municipal legal counsel services on an as -needed basis. Other Matters The provisions of this letter and the attached Standard Terms of Engagement shall apply to any other work or matter for which you engage us. This letter also constitutes your personal guarantee of fees due to us for work performed. We appreciate your expression of confidence in Ogden Murphy Wallace, P.L.L.C. and assure you that we will do our best to provide you with high quality legal services. If you have any questions or concerns during the course of our relationship, we encourage you to raise them with our Managing Member, Jessica Jensen, or me. We look forward to working with you. Very truly yours, OGDEN MURPHY WALLACE, P.L.L.C. Emily Romanenko THE FOREGOING LETTER AND THE ENCLOSED STANDARD TERMS OF ENGAGEMENT ARE UNDERSTOOD AND AGREED: By: Title: 4924-8838-9222, v. 1 Page 127 of 132 OGDEN MURPHY WALLACE, P.L.L.C. STANDARD TERMS OF ENGAGEMENT C'anaral Ratac The usual basis for determining our fees is the time expended by attorneys, paralegals and legal assistants of the firm. The rates for our services may change from time to time without notice, usually in September. Our current rate schedule is always available upon request. Whenever it is appropriate, we will use associate attorneys, law clerks or legal assistants in our office. Other Factors in Rates Although time expended and costs incurred are usually the sole basis for determining our fees, by mutual agreement billings to you for legal services may, in some instances, be based on a more comprehensive evaluation of the reasonable value of the firm's services. The firm is committed to charging reasonable fees for its services. In certain situations, factors other than the amount of time required will have a significant bearing on the reasonable value of the services performed. Such factors include: the novelty and complexity of the questions involved; the skill required to provide proper legal representation; familiarity with the specific areas of law involved; the preclusion of other engagements caused by your work; the magnitude of the matter; the results achieved; customary fees for similar legal services; time limitations imposed by you or by circumstances; and the extent to which office forms and procedures have produced a high quality product efficiently. There may be some activity that we can do on a contingent or other basis, however, we will handle matters on a contingency or other basis only when and to the extent specifically agreed in writing in advance of the work. In circumstances where our fees will be based on or include factors other than our normal hourly charges and costs, we will notify you promptly and prior to proceeding. Any basic document fee that we may charge you has been and will be set in light of these various factors. Billing Fees and Costs We will bill you on a regular basis, normally each month, for all the time spent on your project and for other costs incurred relating to our work or on your behalf. The activities for which our time will be billed will conference time, whether in person or on the telephone; document preparation and revision; negotiations; correspondence; staff or attorney supervision; factual and legal research and analysis; travel on your behalf; and other matters directly pertinent to and related to your business and/or litigation matters handled by our firm. Typical of the costs for which you will be billed include filing fees; delivery fees; computer assisted legal research; copying; imaging; telephone conference charges; charges of outside experts and consultants; and travel. Payment; Interest You agree to make payment within thirty (30) days of receipt of our invoices. Outstanding balances that are not paid within thirty (30) days of receipt will accrue interest at the rate of one percent monthly from the date of invoice until paid. -1- 4924-8838-9222, v. 1 Page 128 of 132 We impose a surcharge on credit cards only. The surcharge is not greater than our costs of acceptance. We impose an effective rate charge of 3% (three percent) on the transaction amounts on Visa, MC, Discover, and AMEX payments. We do not surcharge Gift Cards, Pre -Paid cards, or Visa, MC, Discover, and AMEX debit cards. Trust Deposits All trust deposits from you will be held in a client trust account. By court rule in Washington, funds deposited to a trust account are subject to IOLTA (Interest on Lawyers Trust Account) participation in a pooled trust account. The exception is when the deposit is large enough to earn interest in excess of bank and administrative costs, and you request that it be held in a separate account, in which case the interest earned will be added to the deposit for your benefit and will be taxable income to you. IOLTA funds are used to support law -related charitable and educational activities. Termination You may terminate our representation at any time, with or without cause, by notifying us. Upon such action, all fees and expenses incurred before the termination are due to the firm. If such termination occurs, your original papers will be returned to you promptly upon receipt of payment for outstanding fees and costs. If you wish to have a paper or electronic copy of your file at the conclusion of our representation, we will provide it to you at the current copy rate per page then in effect. Estimates You may, from time to time, ask us for estimates of our fees and expenses either in whole or in part. We are hesitant to give estimates because of their potential inaccuracy. However, if you require it, and if we do provide you with such estimates, they will be based upon our professional judgment, but always with a clear understanding that it is not a maximum or fixed fee quotation. We cannot guarantee that the actual fees and expenses will be at or below the estimates because of factors outside the control of the firm. Confidentiality and Electronic Communications Ogden Murphy Wallace is committed to maintaining the security of our system and the communications with our clients. Unless you otherwise instruct us in writing, we intend to use various communications devices in the normal course (which may include wired or wireless devices, e-mail, cellular telephones, voice over Internet, texting, and electronic data/document web sites) to communicate with and send or make available documents to you and others. Though encryption is a security tool that we utilize, not all communications are encrypted. By signing this letter, you consent to the usage of a variety of communication methods even if such methods are not encrypted. It is important for us to maintain open communication with each other throughout the engagement. We will regularly keep you informed of the status of the matter and will promptly notify you of any major case developments. We will consult with you whenever appropriate. You agree to communicate with and provide us with complete and accurate information as needed to further the case. Further, you will timely notify us of any changes in the structure of your organization, -2- 4924-8838-9222, v. 1 Page 129 of 132 changes to the personal information or residence of any individuals related to this matter, or any extended periods of time when you will be unavailable. Services as Registered Agent If you have asked us to serve as your business's registered agent, please note that this type of work is a "law -related service," which under the Rules of Professional Conduct is not prohibited as unauthorized practice of law when provided by a nonlawyer. The protections of the client -lawyer relationship do not exist in that circumstance. If we receive service of a lawsuit against you or your business in our capacity as registered agent, we will not be providing a defense to you or your business in that matter unless we specifically agree to do so. Dispute Resolution If you disagree with the amount of our fee, please take up the question with your principal attorney contact or with the firm's managing member. Typically, such disagreements are resolved to the satisfaction of both sides with little inconvenience or formality. Any disputes relating to these Terms of Engagement or the accompanying engagement letter (collectively this "agreement") or the amount of legal fees related thereto, will be submitted to arbitration through the American Arbitration Association (the "AAA") in Seattle, Washington, according to its then -effective rules, and to Ogden Murphy Wallace, P.L.L.C. and you agree to be bound by the results of such arbitration. Please be aware that by agreeing to arbitration, you are waiving the right to a trial by jury and your right to appeal. Although the arbitrator will be authorized to award any damages or relief that a court of law having jurisdiction over the dispute could award, the arbitrator will be bound by the AAA rules and not by state or federal court rules, and discovery will be limited to what is allowed under the AAA rules. The grounds for appeal of an arbitration award are limited as compared to a court judgment or jury verdict. Arbitration fees and expenses shall be borne equally by the parties. In the event of non-payment such that we must pursue collection of your account, you agree to pay the costs of collecting the debt, including court costs and fees, and a reasonable attorney's fee. The law of the state of Washington will apply to any such dispute. Withdrawal We reserve the right to withdraw from representing you if, for any reason, our fees are not timely paid in accordance with this agreement, or for any other appropriate reason, as determined by the firm in accordance with applicable law and the Rules of Professional Conduct. Client Documents During the engagement, we will maintain certain documents relevant to this representation. At the conclusion of this engagement, we will retain your original documents for a period of ten years unless you request that they be returned to you. If you have not requested possession of the file or any of its contents at the end of ten years, the file may be destroyed in accordance with our record retention program. We may store some or all of your electronic files on a variety of platforms, including third -party cloud - based servers. You specifically consent to the use of these services for document storage and management, and to the conversion of all paper documents in your file to electronic form. You recognize -3- 4924-8838-9222, v. 1 Page 130 of 132 that technology is ever evolving and that electronic communications cannot be fully protected from unauthorized interception. You acknowledge that our email system may be unencrypted, and you covenant and agree to proactively notify us in writing if you require that any of your deliverables or emails be sent to you with encryption. We caution you not to send or access any email or other electronic message to or from us, respectively, via any public or semi-public network, or network or devices owned or controlled by any third party. Nonetheless, for efficiency purposes, you authorize us to transmit information, including information of a confidential nature, to you (or your designated representative) by email to any address which you may provide to us for such purposes, including responding to the sending address of any such message that we may receive from you. In addition, you authorize our use of third - party cloud, back-up, client management, timekeeping, and file -sharing services, including, but not limited to, ShareFile, Dropbox, DocuSign, Carpe Diem, Mimecast, and SurePoint, in the course of our representation. You acknowledge that we may be bound by certain third party terms and conditions related to the use of such services and that our use of such services is not without risks (and you agree to assume such risks). Please note that if we represent you in a matter in litigation, you have an obligation to preserve all documents that may be relevant to this matter. nicrinimar You acknowledge that we have made no guarantees regarding the disposition, outcome, or results of your legal or business matters, and all expressions we have made relevant thereto are only our opinions as lawyers based upon the information available to us at the time. Our beginning work on your behalf will constitute your acceptance of this agreement unless we receive a written objection from you within ten (10) days of the date of the accompanying engagement letter. Independent Advice Since the Engagement Agreement is legally binding and affects your legal rights, you may wish to seek the advice of independent counsel prior to executing it. Conclusion Thank you for retaining our firm. We look forward to working with you. -4- 4924-8838-9222, v. 1 Page 131 of 132 CITY COUNCIL ADVISORY COMMITTEE MEETING DATES STANDING COMMITTEE Date & Time Location Economic Development and Tourism May 12, 2026; 9:30am; 2nd Monday of the month Remote Access Utilities May 12, 2026; 4:30pm; 2nd Tuesday of the month Remote Access Finance May 19, 2026; 4:30pm; 3rd Tuesday of the month Remote Access Transportation April 28; 2026; 4:45pm 4th Tuesday of the month Remote Access Land Use May 20, 2026; 4:45pm; 3rd Wednesday of the month Remote Access Lodging Tax Advisory TBD; 2026 City Hall Sewer Advisory June 16, 2026; 3:30pm 1333 Lloyd Parkway Outside Agency Committees Varies Varies Ad -hoc Review of POMC 2.04 TBD; 2026 City Hall *Dates subject to change MAYOR Robert (Rob) Putaansuu Mayor Administrative Official CITY COUNCIL Scott Diener Councilmember Position 3 Land Use Committee Transportation Committee Eric Worden Councilmember Position 4 Transportation Committee, Chair Finance Committee DEPARTMENT DIRECTORS Tim Drury Municipal Court Judge Matt Brown Police Chief Mark Trenary Councilmember Position 1 Finance Committee, Chair Transportation Committee KRCC-alt KEDA-alt Heidi Fenton Councilmember Position 5 Utilities/Sewer Advisory Committee E/D &Tourism Committee KRCC 911-aft Debbie Lund, CEBS SPHR SHRM-SCP Human Resources Director Nicholas Bond, AICP Community Development Director Jay Rosapepe Councilmember Position At -Large Utilities/Sewer Advisory Committee, Chair Land Use Committee, Chair Kitsap Public Health District PSRC-alt Kitsap Transit John Morrissey Councilmember Position 2 Mayor Pro-Tem Finance Committee E/D & Tourism Committee, Chair Lodging Tax, Chair Kitsap Economic Development Alliance Shirah Dedman Councilmember Position 6 E/D & Tourism Committee Utilities/Sewer Advisory Committee Land Use Committee Noah Crocker, M.B.A. Brandy Wallace, MMC, CPRO Finance Director City Clerk Denis Ryan, CPWP-M, CPRP Public Works Director Page 132 of 132