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11/20/2018 - Work Study - Packet Please turn off cell phones during meeting and hold your questions for staff until the meeting has been adjourned Meeting materials are available on the City’s website: www.cityofportorchard.us or by contacting the City Clerk’s Office, 360.876.4407 The City of Port Orchard does not discriminate on the basis of disability. Contact the City Clerk’s office should you need special accommodations. City of Port Orchard Council Work Study Session November 20, 2018 6:30 p.m. 1. Annapolis Creek Culvert Replacement Project (Dorsey) Page 3 Estimated Time: 30 Minutes 2. Kitsap County Courthouse Feasibility and Space Needs Assessment (Commissioner Garrido) Page 17 Estimated Time: 30 Minutes 3. Community Service Program (Drury and Ells) Page 61 Estimated Time: 15 Minutes 4. Amendment to POMC Chapter 3.48, Multifamily Property Tax Exemption (Bond) Page 67 Estimate Time: 15 Minutes 5. Disbursement of Funds Resolution and Policies (Crocker) Page 107 Estimated Time: 15 Minutes 6. POMC 10.12 Proposed Changes and Updates (Dorsey) Page 109 Estimated Time: 15 Minutes 7. 2019/2020 Biennial Budget Questions/Comments (Crocker) Estimated Time: 15 Minutes Mayor: Rob Putaansuu Administrative Official Councilmembers: Bek Ashby Chair: ED/Tourism/LT Committee Staff: Development Director Finance Committee KRCC / PSRC TransPol / KRCC TransPol KRCC PlanPol-alt / PRTPO Shawn Cucciardi Finance Committee Land Use Committee PSRC EDD-alt Fred Chang Utilities Committee Sewer Advisory Committee (SAC) Staff: Public Works Director Jay Rosapepe ED/Tourism/LT Committee Utilities Committee Chair: Lodging Tax Committee Sewer Advisory Committee (SAC) KRCC-alt / KRCC TransPol-alt Kitsap Transit-alt John Clauson Chair: Finance Committee Staff: Finance Director Kitsap Public Health District-alt KEDA/KADA-alt Cindy Lucarelli Chair: Utilities and SAC Committee Staff: Public Works Director Chair: Chimes and Lights Committee Staff: City Clerk KEDA/KADA Scott Diener (Mayor Pro-Tempore) Chair: Land Use Committee Staff: Development Director ED/Tourism/LT Committee PSRC Growth Mgmt-alt Department Directors: Nicholas Bond, AICP Development Director Mark Dorsey, P.E. Director of Public Works/City Engineer Tim Drury Municipal Court Judge Noah Crocker, M.B.A. Finance Director Geoffrey Marti Police Chief Brandy Rinearson, MMC, CPRO City Clerk Contact us: 216 Prospect Street Port Orchard, WA 98366 (360) 876-4407 This Page Intentionally Left Blank City of Port Orchard Work Study Session Executive Summary Issue Title: Annapolis Creek Culvert Replacement Project Meeting Date: November 20, 2018 Time Required: 30 Minutes Attendees: Mark R. Dorsey, P.E, Public Works Director/City Engineer Kenneth D. Andersen, P.E., Reid Middleton, Inc. Action Requested At This Meeting: Presentation of the Annapolis Creek Culvert Replacement Project, followed by discussion and direction to the Mayor for completion of 30% Design & Permit Coordination in 2018, including the interest of Council to pursue a flood management project with the County. Background/Issue: In 2017, the City initiated the Annapolis Creek Culvert Replacement Project with the award of the 30% Design and Permit Coordination, whereby the principal design elements would be address, along with the determination of associated costs for the pursuit of future funding opportunities. The principal design elements include, 1) the structural and hydraulic design of the replacement culvert, 2) the design interface with the Bay Street Pedestrian Pathway Project, 3) the inclusion of utility upgrades and repairs within the Culvert area, and 4) the coordination of future permits needed from local and state agencies to construct the replacement culvert. The design elements listed above include efforts from civil and structural engineers, surveyors, cultural and environmental scientists, and geoltechnical engineers. Along with the principal design elements listed, the upstream conditions of Annapolis Creek were also determined (extent of contributing watershed and hydraulic modeling) to determine existing ang future culvert hydraulic conditions and to better understand the upstream flooding influences. Alternatives: The consultant team and staff met in September of 2018 to discuss the project’s overall status and to review the results of the hydraulic model, which made it clear that the culvert replacement project will not address upstream flooding issues. Recommendation: Staff recommends discussing the issue, and then provide direction to the Mayor. Relationship to Comprehensive Plan: Chapter 4 - Parks Attachments: Reid Middeton provided handouts Follow-up Notes & Outcomes: Page 3 of 132 This Page Intentionally Left Blank Page 4 of 132 LL/rs/2Ot8 . Annapolis Creek Culvert Replacement Prcject - 300/6 Design Presentation . Reid Middleton - Prime Consultant P.oF{,il,anaenefi,alrt(tt dandCfr Endffi ard aorw'tff, Edployee owned Eveffi WAbM ln Bugns tor 65 yeaB ' GeoEngineers - Subconsultant C@id{f.ttul,WrwrlJ#€sf6, gololb4 Phe i ESAf,d Psflrf*tg. ' Cultural Resource Consultants C^//frfialRetawo'6lwt lntroduction . Asssssment ofthe existing drainage system , Evaluate the existing conditions , ldentify problems . Devslop improvemsnt options with construction costs Project Goals & Objectives L Page 5 of 132 1.1/Ls/201.8 Describe the existing conditions and history of problems Drainage study, hydrology/hydraulics, findings Geotechnic€l evaluation, structural requirements Environmental issues and permitting Alternative solutions and cost Presentation t" \.u Project Location d 2 Page 6 of 132 LLlLs/20L8 Bay Street Culvert Outlet Pipes in Bay Street Culvert 36-inch Concrete Culvert 3 Page 7 of 132 1.t/ts/20L8 #*. Surface above Bay Street Culvert Upstream of 36-inch Culvert A,rnold Avenue/Lawrence Street lntersection 4Page 8 of 132 LLlLs/2OL8 Arnold Avenue - Driveway Culvert Arnold Avenue - Low Point . Program used HEC-RAS version 5.0.5 (USACE, 201 8) . Design Criteria: Slorre: 1qt yar d€nt vtitt tM 01200 cla Ttd€.: FENA Ae Flood E s.lion: 13 feet I{AVD88 . Two existing conditions with different storm events . Three proposed improvement senarios il Hydraulic Modeling 5 Page 9 of 132 1.1/1.5/2OL8 i' r..:trJi Existing Conditions - <2 year storm ffi Existing Conditions - <2 Year Storm Existing Conditions - 108 Year Storm / FEMA BFE Tide 6 Page 10 of 132 LLlts/2Ot8 Bay Street Culverts Replaced Bay Street & Arnold Culverts Replaced Bay Street, A,rnold & Driveway Culverts Replaced 7Page 11 of 132 LLlts/20L8 . Geotechni€l - Liquefaction: potential of 12 to 24-inches of settlement during design level earthquake. . Foundation Recommendation: Pile foundation. Piles must extend approximately 40- feet below grade to minimiz6 settloment issues. . Culvert Construclion Considerations: CwektCtM-Bd ffA.dl Cw.,ee!tuqiffi Wt Eolbrn - Recac Cdsere Cffiwa'4dl,dFtrA{dt . Re@mmended Structure Cweb Cohst eill Op6r Boiofl - Precd Corseb - St?el piF fl6. tGtoea o @ler,,O lool srlb@*nqd Cffi& ffie dwz,J,€dd lsffo.i€ tidsd rdrfitrcrtt Geotechnical & Structural . Phase 1 ESA: Formerautomotiveservicstation on property Con4tMPh@2el@turc durfE Frrd Da{'tr . Cultural Resources Overview: No significantfindings. - |lptfrot wtut ld afifadr du,iu ryEffdor. Phase 1 ESA & Cultural Resources Overview - .f 'S .;. Alternative 1 - Bay Street Culvert Replacement 8Page 12 of 132 LLlLs/20t8 i1,r:. Alternative 1 - Bay Street Culvert Replacement . Site Plan Alternative 2 - Estuary Restoration *,>,,,, Bay Street Pedestrian Walkway 9 Page 13 of 132 LL/rs/20L8 F**f R!?ig igffi ".€Atf,;u8n#3iilj{,m o"*n;' a Cfrcaltuas Ordin.nce (POMC m.162 & Shrslin€ Masbr PrQram (POMC rc.lg)6d@tuldss:ffid&mbre Sble Enuqm6ntal Policy M (SEPA) cons@ds Sbm6r Gemral P€mfr (CGSWP)- Ecolqy qdb@-d@md.fuid6 Federal Pemit3lApprovals ' Clern Wat€rAct S*tds 4q and 401 - USACgEcology Local PermitslApprovals ' Masbr Psrmn Applicaton tffiffikffi SEPAinfialod 6er City tsmibtutud,@6@(ml@ Slale PermitsrApprovals Hydraulb Prcjet App.oval (HPA) -Wory Permitting - Summary =--:i&-- r ?i'gl i':*!lEr tAwi l:gl -I 1. :L--FtU -i[:Fl .4ii:si+!* t F,|,.t F' -{i'L! t T I fI&IE r- Permitting - Schedule Questions? 10Page 14 of 132 11./ts/2oL8 "Thenk You For Yow' Purticipation!" Closing Remarks LLPage 15 of 132 Page 16 of 132 City of Port Orchard Work Study Session Executive Summary Issue Title: Kitsap County Courthouse Feasability and Space Needs Assessment Meeting Date: November 20, 2018 Time Required: 30 Minutes Attendees: Commissioner Garrido Action Requested At This Meeting: County presentation on the Courthouse Feasibility and Space Needs Assessment status review. Issue/Background: On July 17, 2018, Kitsap County Administrator Karen Goon, President Ron Thomas of Thomas Architecture Studios, and Commissioner Garrido provided a presentation on space needs at the County Courthouse. Tonight’s presentation is an update on Option 5 for the Courthouse. Alternatives: None. Recommendation: None. Relationship to Comprehensive Plan: None. Attachments: Courthouse Feasibility and Space Needs Assessment. Follow-up Notes & Outcomes: Page 17 of 132 This Page Intentionally Left Blank Page 18 of 132 Option 5 -Overview Feasibility and Space Needs Assessment Status Review with Port Orchard City Council Kitsap County Courthouse 11-20-2018 Page 19 of 132 Space SummaryPage 20 of 132 Courtroom SummaryPage 21 of 132 Existing Parking Site Analysis Total: 612 stalls (Estimate) *Excluding stalls for Admin Building & Public Works* OFF-STREET PARKING (ESTIMATE 430) ON-STREET PARKING (ESTIMATE 182) Estimated Parking requirements for new Courthouse: Courthouse Staff(2030)370 Court Visitors: 400 (50% rooms @ 80% Occupancy) Jurors: 150 Total:920 Current Parking Dedicated to Jail/Facilities Approx. 80 Stalls Current Parking Available: 532 Stalls Division St Cline AveTaylor St Sidney AvePage 22 of 132 Concept Summary Option 1 Option 2 Option 3 Option 4 Page 23 of 132 ADULT DETENTION FACILITY EXISTING COURTHOUSE Attributes •Multiple phases •6 floors including chambers on collegial floor •2-story base expressed with court floors setback from street Option 4 –Phase 1Page 24 of 132 ADULT DETENTION FACILITY Attributes •Lobby on corner •2-story base wraps around corner •Two public elevator cores Option 4 –Phase 2Page 25 of 132 PHASE 1 -LEVEL 6 Superior Court Chambers District Court Chambers PHASE 1 -LEVEL 5 6 Superior Courtrooms –Typical PHASE 1 -LEVEL 2 Prosecutor Building Services PHASE 1 -LEVEL 1 1 Superior Courtroom –Secure 1 District Hearing Room District Court Offices Jury Services Building Support PHASE 1 -LEVEL 0 Secure Connection to Jail PHASE 1 -LEVEL 4 4 Superior Courtrooms –Typical Superior Court Offices PHASE 1 -LEVEL 3 6 District/Superior Courtrooms LEGEND Public Circulation Private Circulation –Staff & Judges Secure Circulation–In-custody Defendants PROSECUTOR BUILDING SERVICES BUILDING SERVICES DISTRICT COURT OFFICES JURY SERVICES TYPICAL COURTROOM TYPICAL COURTROOM TYPICAL COURTROOM TYPICAL COURTROOM TYPICAL COURTROOM TYPICAL COURTROOM SUPERIOR COURT OFFICES TYPICAL COURTROOM TYPICAL COURTROOM TYPICAL COURTROOM TYPICAL COURTROOM TYPICAL COURTROOM TYPICAL COURTROOM TYPICAL COURTROOM TYPICAL COURTROOM TYPICAL COURTROOM TYPICAL COURTROOM COLLEGIAL FLOOR SECURE HEARING DISTRICT COURT Option 4, Phase 1 –Stacking DiagramPage 26 of 132 PHASE 1 -LEVEL 6 Superior Court Chambers District Court Chambers PHASE 1 -LEVEL 5 6 Superior Courtrooms –Typical PHASE 1 -LEVEL 2 Prosecutor Building Services PHASE 1 -LEVEL 1 1 Superior Secure Hearing Room 1 District Traffic Court District Court Offices Jury Services Building Support PHASE 1 -LEVEL 0 Secure Connection to Jail Building Services PHASE 1 -LEVEL 4 6 Superior Courtrooms –Typical Superior Court Offices PHASE 1 -LEVEL 3 6 District Courtrooms –Typical Superior Court Offices PHASE 2 -LEVEL 1 Lobby County Clerk Sheriff’s Office Public Defense PHASE 2 -LEVEL 2 Information Services Sheriff’s Office Building Support 1 Large Superior Courtroom LEGEND Public Circulation Private Circulation –Staff & Judges Secure Circulation–In-custody Defendants PROSECUTORINFORMATION SERVICES SHERIFF SHERIFF COUNTY CLERK PUBLIC DEFENSE BUILDING SERVICES BUILDING SERVICES DISTRICT COURT OFFICES JURY SERVICES LARGE COURTROOM TYPICAL COURTROOM SECURE HEARING TYPICAL COURTROOM TYPICAL COURTROOM TYPICAL COURTROOM TYPICAL COURTROOM SUPERIOR COURT OFFICES TYPICAL COURTROOM TYPICAL COURTROOM TYPICAL COURTROOM TYPICAL COURTROOM TYPICAL COURTROOM TYPICAL COURTROOM TYPICAL COURTROOM TYPICAL COURTROOM TYPICAL COURTROOM TYPICAL COURTROOM COLLEGIAL FLOOR BUILDING SERVICES LOBBY SECURE TRANSFER CORRIDOR DISTRICT COURT Option 4, Phase 2 –Stacking DiagramPage 27 of 132 ADULT DETENTION FACILITY Secure corridor connects to base of prisoner elevators Partial basement Option 4 –Secure CirculationPage 28 of 132 Taylor St. Division St.Sidney Ave.Cline Ave.ADMIN.PUBLIC WORKS. COURT OFFICES JAIL FAC. Secure Parking COURTS Option 4 –Phase 1Page 29 of 132 Taylor St. Division St.Sidney Ave.Cline Ave.ADMIN. PUBLIC WORKS. JAIL FAC. Secure Parking COURT OFFICES LOBBY Option 4 –Phase 2Page 30 of 132 Option 4, Phase 1 –Aerial ViewPage 31 of 132 Option 4, Phase 2 –Aerial ViewPage 32 of 132 TYPICAL COURTROOM TYPICAL COURTROOM TYPICAL COURTROOM TYPICAL COURTROOM TYPICAL COURTROOM TYPICAL COURTROOM TYPICAL COURTROOM TYPICAL COURTROOM TYPICAL COURTROOM TYPICAL COURTROOM TYPICAL COURTROOM TYPICAL COURTROOM TYPICAL COURTROOM TYPICAL COURTROOM TYPICAL COURTROOM SUPERIOR COURT OFFICES TYPICAL COURTROOM HOLD HOLD HOLD HOLD HOLD HOLD HOLD HOLD COLLEGIAL FLOOR LOBBY COUNTY CLERK SHERRIF LARGE COURTROOM PROSECUTOR JURY SERVICES DISTRICT COURT OFFICE SECURE HEARINGDISTRICT COURTROOM BUILDING SERVICES BUILDING SERVICES COURT SUPPORT COURT SUPPORT COURT SUPPORT BUILDING SERVICES Option 4 –Building SectionPage 33 of 132 Option 4 –Street ElevationPage 34 of 132 Option 4 Advantages •Larger Phase 1 decreases size of Phase 2 in keeping with height of Administration Building •Eliminates double move for Jury Services and Prosecutor •Two-story building base in line with Port Orchard zoning (and adjacent residential) with floors above set back (zoning modifications in process to allow for this envelope) •Allows both internal and horizontal expansion •Good internal wayfinding •Good opportunities for public plaza at NW corner and good plaza between Administration & Courthouse •Very good natural light & views Disadvantages •Multiple construction phases •Longer offices for Clerk and Sheriff Advantages & DisadvantagesPage 35 of 132 Concept Summary Option 1 Option 2 Option 3 Option 4 Page 36 of 132 Concept Comparison Chart CONCEPT COMPARISON Option # 1Option # 2Option # 3Option # 4LEGEND Project Phasing - Schedule n 8 8 8 Best n 4 Project Phasing - Work-around Complexity n 8 8 t Good t 3 Project Phasing - Potential Costs n 8 8 t Fair 8 2 Port Orchard Zoning - Alignment With O t t t Poor O 1 Impact on Surrounding Residential Neighborhood O n 8 t Relationship to Adjacent Civic Buildings O n n n Height of Building / Contextual Relationship O n n t Security n t t t Internal Adjacencies and Functional Relationships n t t t Wayfinding - Ease of Access n t t t Natural Light and View n t 8 t Public Entry Sequence / Plaza Design Opportunitiest 8 t n Screening of North Wing of Detention Center O n n n Connection to Detention Center t n O t Expansion Capabilities t n O n Parking Cost t t t t Total Project Costs n t 8 t SCORE 49 53 44 54 OVERALL RANK 3 2 4 1 Page 37 of 132 Option 5 –Phasing Administration Public Works Lobby Phase 1 Phase 2 Phase 3 Phase 4 Taylor St. Division St.Sidney Ave.Cline Ave.Jail Page 38 of 132 ADULT DETENTION FACILITY EXISTING COURTHOUSE PHASE 1 •4 floors with 12 courts •Future expansion space on site •Revise space allotment in existing courthouse Option 5 –Phase 1Page 39 of 132 ADULT DETENTION FACILITY EXISTING COURTHOUSE PHASE 2 •Add 5 levels to south end of courthouse •Move District Courts Option 5 –Phase 2Page 40 of 132 ADULT DETENTION FACILITY EXISTING SHERIFF & PROSECUTING ATTORNEY PHASE 3 •New lobby •First phase of new court office building NEW COURT OFFICE BUILDING Option 5 –Phase 3Page 41 of 132 ADULT DETENTION FACILITY EXISTING COURTHOUSE PHASE 4 •Complete new court office building Option 5 –Phase 4Page 42 of 132 3 Typical Courtrooms Superior Court Chambers 4 Typical Courtrooms Superior Court Office Jury Services Secure Hearing Room IT Computer Room Building Support PROSECUTING ATTORNEY SECURE HEARING SUPERIOR OFFICE SUPERIOR JUDGES JURY SERVICESIT MEP INFO SERVICES PUBLIC DEFENSE COUNTY CLERK SHERIFF FAMILY SERVICES DISTRICT COURT Large Courtroom 3 Typical Courtrooms LOBBY LARGE COURTExisting Detention Center EXISTING COURT OFFICES NEW COURTHOUSE PROSECUTING ATTORNEY PROSECUTING ATTORNEY LEGEND Public Circulation Private Circulation –Staff & Judges Secure Circulation–Incustody Defendants Option 5 –Phase 1 Stacking Diagram Page 43 of 132 JURY SERVICES SECURE HEARING SUPERIOR OFFICE JUDGES CHAMBERS DISTRICT OFFICE IT MEP MEP INFO SERVICES PUBLIC DEFENSE COUNTY CLERK SHERIFF PROSECUTING ATTORNEY Storage LOBBY LARGE COURT Existing Detention Center PROSECUTING ATTORNEY PROSECUTING ATTORNEY FAMILY SERVICES 6 Typical Courtrooms (2 used for transition space) Large Courtroom 5 Typical Courtrooms (2 used for transition space) Superior and District Court Judges Chambers EXISTING COURT OFFICES NEW COURTHOUSE LEGEND Public Circulation Private Circulation –Staff & Judges Secure Circulation–Incustody Defendants 6 Typical Courtrooms (2 used for transition space) Superior Court Office Jury Services Secure Hearing Room IS Computer Room Building Support Option 5 –Phase 2 Stacking Diagram Page 44 of 132 LEGEND Public Circulation Private Circulation –Staff & Judges Secure Circulation–Incustody Defendants 6 Typical Courtrooms (2 used for transition space) 6 Typical Courtrooms (2 used for transition space) Superior Court Office Jury Services Secure Hearing Room IS Computer Room Building Support JURY SERVICES SECURE HEARING SUPERIOR OFFICE JUDGES CHAMBERS DISTRICT OFFICE IT MEP MEPINFO SERVICES PUBLIC DEFENSE COUNTY CLERK SHERIFF SHERIFF PROSECUTING ATTORNEY Large Courtroom 5 Typical Courtrooms (2 used for transition space) Superior and District Court Judges Chambers LOBBY LARGE COURT Existing Detention Center PROSECUTING ATTORNEY INFO SERVICES NEW COURT OFFICES EXISTING SHERIFF & PROSECUTING ATTORNEY SHERIFF NEW COURTHOUSE Option 5 –Phase 3 Stacking Diagram Page 45 of 132 LEGEND Public Circulation Private Circulation –Staff & Judges Secure Circulation–Incustody Defendants 6 Typical Courtrooms 6 Typical Courtrooms Superior Court Office District Court Office Secure Hearing Room IS Computer Room Building Support JURY SERVICES SECURE HEARING SUPERIOR OFFICE JUDGES CHAMBERS DISTRICT OFFICEIT MEP MEPINFO SERVICES PUBLIC DEFENSE COUNTY CLERK SHERIFF SHERIFF PROSECUTING ATTORNEY Large Courtroom 5 Typical Courtrooms Superior and District Court Judges Chambers Storage LOBBY LARGE COURT Lobby Jury Services County Clerk Sheriff Public Defense Information Services Sheriff Prosecuting Attorney Existing Detention Center PROSECUTING ATTORNEY Option 5 –Phase 4 Stacking Diagram Page 46 of 132 Adaptive Reuse of Existing Courthouse Option 5 –Level 1 Page 47 of 132 Adaptive Reuse of Existing Courthouse Option 5 –Level 2 Page 48 of 132 Adaptive Reuse Levels of Renovation Building Renovations Level 1 Page 49 of 132 Adaptive Reuse Levels of Renovation Building Renovations Level 2 Page 50 of 132 Taylor St. Division St.Sidney Ave.Cline Ave.ADMIN PUBLIC WORKS EXISTING JAIL FAC PHASE 1 Option 5 –Phase 1 Site PlanPage 51 of 132 Taylor St. Division St.Sidney Ave.Cline Ave.ADMIN PUBLIC WORKS EXISTING JAIL FAC PHASE 1 PHASE 2 Option 5 –Phase 2 Site PlanPage 52 of 132 Taylor St. Division St.Sidney Ave.Cline Ave.ADMIN PUBLIC WORKS EXISTING JAIL FAC PHASE 1 PHASE 2 PHASE 3 Option 5 –Phase 3 Site PlanPage 53 of 132 Taylor St. Division St.Sidney Ave.Cline Ave.ADMIN PUBLIC WORKS PHASE 4 JAIL FAC PHASE 1 PHASE 2 PHASE 3 Option 5 –Phase 4 Site PlanPage 54 of 132 Administration Public Works Lobby Phase 1 Phase 2 Phase 3 Phase 4 Taylor St. Division St.Sidney Ave.Cline Ave.Jail Option 5 -PhasingPage 55 of 132 LOBBY TYPICAL COURTROOM JURY SERVICESSUPERIOR COURT OFFICE SECURE HEARING TYPICAL COURTROOM TYPICAL COURTROOM TYPICAL COURTROOM TYPICAL COURTROOM TYPICAL COURTROOM TYPICAL COURTROOM LARGE COURTROOM TYPICAL COURTROOM TYPICAL COURTROOM TYPICAL COURTROOM TYPICAL COURTROOM HOLD HOLD HOLD HOLD HOLD HOLD HOLD LOBBY Option 5 –Phase 1 SectionPage 56 of 132 LOBBY TYPICAL COURTROOM DISTRICT COURT OFFICES SUPERIOR COURT OFFICE SECURE HEARING TYPICAL COURTROOM TYPICAL COURTROOM TYPICAL COURTROOM TYPICAL COURTROOM TYPICAL COURTROOM TYPICAL COURTROOM LARGE COURTROOM TYPICAL COURTROOM TYPICAL COURTROOM TYPICAL COURTROOM TYPICAL COURTROOM HOLD HOLD HOLD HOLD HOLD HOLD HOLD HOLD HOLD HOLD TYPICAL COURTROOM TYPICAL COURTROOM TYPICAL COURTROOM TYPICAL COURTROOM TYPICAL COURTROOM TYPICAL COURTROOM JUDGES CHAMBERS BUILDING SUPPORT FUTURE PHASE Option 5 –Full Build Out SectionPage 57 of 132 Option 5 –Full Build Out ElevationPage 58 of 132 Option 5 –Aerial ViewPage 59 of 132 This Page Intentionally Left BlankPage 60 of 132 City of Port Orchard Work Study Session Executive Summary Issue Title: Community Service Program Meeting Date: November 20, 2018 Time Required: 15 minutes Attendees: None Action Requested At This Meeting: Discussion regarding the community service program. Issue/Background: Discussion of the community service program. Alternatives: None. Recommendation: None. Relationship to Comprehensive Plan: None. Attachments: City CSW Program-Historical Statistics; Line Items and Totals; and POMC Revenue 2018. Follow-up Notes & Outcomes: Page 61 of 132 This Page Intentionally Left Blank Page 62 of 132 Year Number Referred Completions in Program Hours Completed (Jail) Hours Completed (Court Fines) Total Hours Completed 2013 90 51 1797 2244 4041 2014 72 42 1897 1442 3339 2015 61 28 1257 1091 2348 2016 35 13 636 852 1488 2017 40 15 756 806 1562 2018*28 19 459 562 1021 *Through October 31, 2018. City CSW Program - Historical Statistics Page 63 of 132 Line Item Amount Wages (Matt)$32,760.00 Benefits $16,922.24 Telephone/computer/fax $500.00 Printing/supplies $600.00 Building charge $2,400.00 Liability insurance $1,500.00 SUBTOTAL $54,682.24 Admin % (8.5%)$4,647.99 ANNUAL TOTAL $59,330.23 MONTHLY TOTAL $4,944.19 Previous monthly cost $3,968.00 Increase over previous 20% Page 64 of 132 PORT ORCHARD MUNICIPAL COURTREVENUE 2018AVG/MOTOTALDecemberNovemberOctoberSeptemberAuqustJulyJuneMayAprilMarchFebruaryJanuaryMONTH$ 12,087.10$ 120.871$ t2,692$ 8.357$ tt.2r7$ rr,074$ 11.2s3$ 12,480$ 10,228$ 16,392$ 7t,244$ 15,934TRAFINFRACTIONS$ 543.20s s,432$ 616$ 33s$ 710$ 494$ 901$ 676$ 2s2$ 433$ 4s2$ s63NONTRAF$ s,30s.s0$ s3.0ss$ 6,132$ 3.816$ 6,327$ 4.963s 4.821$ 4,820$ s,921$ s,401$ 4,860$ s,994PARKING$ 2,016.40$ 20J64$ 2,216$ 2.306$ 2.814$ 1.623$ 1.718$ 1,658$ 2,060$ 2,329$ 1,873$ 1,s67DUICRIMINAL CITATIONS$ 2,989.20$ 29,892$ 3,209$ 3.777$ 3.660$ 3.361g 2.928$ 1,650$ 2,s67$ 4,062$ 1,876$ 3,402TRAF$ 480.80$ 4.808$ s09$ 384$ 371$ 623$ 237$ 622$ 443$ 63s$ s32$ 4s2NONTRAF$ 11,945.60$ 119.456$ 11,836$ 11.968$ L3,726$ 10,660$ 11.941$ 13.130$ 8,ss0$ 13,904$ 12,40s$ 11,336PROB.$ 2,42t.t0$ 24,27t$ 1,933$ 2.578$ 2,3ss5 r.702$ 1.888$ 3.1s6$ 2,027$ 3,44t$ 2,486$ 2,645OTH COSTS$ 2,801.20$ 28.012$ 3.036$ 2.099$ 2.799$ 2.714$ 2.670$ 2,643$ 2,330$ 3,684$ 2,445$ 3,s92PSEA$ 40,590.10$ 40s.901$$$ 42,179$ 35.020$ 43,979g 37.214$ 38.3s7$ 40,835$ 34,378$ s0,281$ 38,173$ 45,485TOTAL$ 32,497.37s 324.974$ 34.20s$ 28.8s6g 35.772$ 29,408$ 30,255$ 33,348$ 26,784$ 40,634$ 31,088$ 34,624PAID TO CITYAVG/MOTobls thruMav 2OL7$ t2,0L7$ 1,14,198$ 326.67$ 3,e20$ s,+qt$ 6s,293$ 1,962$ 22,3s9$ 3,050$ 36,s97$ 946s Lt,347$ 11,669$ 140,028$ 1,991$ 23,896$ 2,435$ 29,2L9$ 37,845$ 4s4,L43$ 31,741.7s$ 380,901100o/o retained by the CityPage 65 of 132 This Page Intentionally Left Blank Page 66 of 132 City of Port Orchard Work Study Session Executive Summary Issue Title: Amendment to POMC Chapter 3.48, Multifamily Property Tax Exemption Meeting Date: November 20, 2018 Time Required: 15 Minutes Attendees: Nick Bond, Community Development Director Background/Issue: On July 26, 2016, the City Council adopted Ordinance 023-16, which established the City’s multifamily property tax exemption program, Chapter 3.48 POMC. The areas currently designated for tax exemption are shown on Figure 1. At the November 13, 2018 City Council meeting, during the Land Use Committee report, staff informed the City Council of a citizen request for expansion of the multifamily property tax exemption area, to include three undeveloped parcels on the south side of SE Sedgwick Rd, adjacent to the east side of Fred Meyer (Figure 2). This site is proposed for a 113-unit apartment development. During this report, the Council was made aware that market rate rents for apartments in Port Orchard were very close to meeting the definition of affordable housing and that other nearby cities have designated all local centers for multifamily property tax exemption. After discussion, the Council requested that a draft ordinance amending the City’s tax exemption map be brought forward for consideration at the November work-study meeting. Based on the November 13 discussion, staff decided to bring forward two alternatives. The first alternative was as requested by Council. The second alternative was prepared out of concern that if the map was amended to add the Sedgwick properties to the tax exemption area, the builder would likely qualify for both the 8- or 12-year exemption, regardless of whether any of the units were made available below market rates. As such, two draft ordinances are being presented for discussion: one with an expanded tax exemption map including the Sedgwick parcels, without any changes to the 12-year tax exemption designation (Figure 4); and one showing both the Sedgwick expansion and limiting the 12-year tax exemption to the downtown area (Figure 5). For the second alternative, corresponding changes were also made to the text of Section 3.48.040, as shown in the draft ordinance. The reason to retain the 12-year abatement in the downtown area under the second alternative two was to ensure that the additional costs of providing below-grade parking and building on fill could be offset, since downtown rents are likely to be higher than in other areas of the city if redevelopment occurs, and if affordable housing is provided, it should be in proximity to transit and local services. Additionally, Council requested that staff provide a breakdown of the annual property tax for the three Sedgwick parcels, showing how the pre- and post-development tax assessed against these properties would be distributed among the local taxing districts: Action Requested at this Meeting: Provide feedback and direction to staff on the proposed alternative ordinances for revisions to Chapter 3.48 POMC. Page 67 of 132 Executive Summary Page 2 of 7 2018 Kitsap County Real Property Tax Distribution for Sedgwick Properties: (information provided by Treasurer’s Office; rounded to even numbers) State: 21% ($2.10 per $1,000) City: 16% ($1.60 per $1,000) Library: 3% ($.03 per $1,000) Port: 3% ($.03 per $1,000) Schools: 30% ($3 per $1,000) Fire: 16% ($1.60 per $1,000) County: 10% ($1 per $1,000 PUD: .6% ($.06 per $1,000) Current Sedgwick Property Tax (2018, 1.04% of value): $11,573.34 Distribution: State $2,958.25 City $1,633.52 Library $422.68 Port $320.17 Schools $3,145.17 Fire $2,028.41 County: $998.39 PUD $66.75 Approximate Property Tax Based on Estimated $27 Million Post-Development Value: $280,800 (2018 tax rate; tax exemption effective 2020; information provided by applicant) Distribution: State $81,432 City $42,012 Library $8,424 Port $8,424 Schools $81,432 Fire $50,414 County: $28,080 PUD $1,624 Total City share of property tax from 2020-2028, at current tax rate for undeveloped property (or 8-year exemption): $13,038.15 Total City share of property tax from 2020-2028, at current tax rate for $27 million value developed property: $336,096 Alternatives: Staff has prepared two alternative draft ordinances. Council is not obligated to take any action at this time. In addition to these options, Council may want to continue studying these issues as they relate to expanding the tax abatement map, and setting more stringent thresholds for the affordable housing component in order to qualify for a tax exemption. Relationship to Comprehensive Plan: The City’s multifamily tax exemption program supports a number of Comprehensive Plan goals and policies, including: Policy LU-1 Provide a variety of housing types and employment opportunities that meet the needs of diverse socioeconomic interests. Policy LU-17 Incentivize infill development to preserve and protect open space, critical areas and natural resources. Policy LU-28 In conjunction with the proposed Centers strategy, enhance downtown Port Orchard’s role as the center of the South Kitsap region, reflecting the following principles in development standards and land use plans: • Encourage land uses that support transit centers and promote pedestrian activity. Page 68 of 132 Executive Summary Page 3 of 7 • Promote a mix of uses, including retail, office, and housing. • Encourage uses that will provide both daytime and evening activities. • Support civic, cultural, and entertainment activities. • Provide sufficient public open space and recreational opportunities. • Enhance, and provide access to, the waterfront. • Develop enhanced design guidelines and design review requirements that promote attractive, pedestrian-scale development and redevelopment within the City’s historic downtown area. Policy HS-4 Adopt zoning and development regulations that will have the effect of minimizing housing costs and maximizing housing options. Policy HS-7 Consider the creation of zoning and other land use incentives for the private construction of affordable and special needs housing as a percentage of units in multi-family development. Policy HS-8 Consider adopting incentives for development of affordable multi-family homes through property tax abatement in accordance with 84.14 RCW, focusing on designated mixed- use local centers with identified needs for residential infill and redevelopment. Policy HS-14 Implement zoning and development regulations which encourage infill housing on empty and redevelopable parcels. Policy HS-1 Consider programs to preserve or rehabilitate neighborhoods and areas that are showing signs of deterioration due to lack of maintenance or abandonment. Recommendations: Staff recommends that Council discuss the alternatives and provide direction concerning next steps. Attachments: Alternative 1 Draft Ordinance; Alternative 2 Draft Ordinance; Materials provided by applicant requesting amendment to POMC 3.48 Page 69 of 132 Executive Summary Page 4 of 7 Figure 1: Current Multifamily Property Tax Exemption Area Map, POMC 3.48 Page 70 of 132 Executive Summary Page 5 of 7 Figure 2: Sedgwick Parcels Figure 3: Downtown Parcels Page 71 of 132 Executive Summary Page 6 of 7 Figure 4: Expanded Tax Exemption Area (Alternative 1) Page 72 of 132 Executive Summary Page 7 of 7 Figure 5: Expanded Tax Exemption Area with Revised 12-Year Area (Alternative 2) Page 73 of 132 This Page Intentionally Left Blank Page 74 of 132 1 of 12 ORDINANCE NO. XX-18 ALTERNATIVE 1 AN ORDINANCE OF THE CITY OF PORT ORCHARD, WASHINGTON, AMENDING PORT ORCHARD MUNICIPAL CODE CHAPTER 3.48; EXPANDING THE RESIDENTIAL TARGETED AREA FOR MULTIFAMILY PROPERTY TAX EXEMPTION; PROVIDING FOR SEVERABILITY AND CORRECTIONS; AND SETTING AN EFFECTIVE DATE. WHEREAS, on July 26, 2016, the City Council adopted Ordinance No. 023-16, which created Chapter 3.48 of the Port Orchard Municipal Code (Multifamily Property Tax Exemption); and WHEREAS, Figure 1: Alternative 1 in Chapter 3.48 POMC shows the designated residential targeted area for multifamily property tax exemption; and WHEREAS, Section 3.48.030(3) POMC provides that the City Council may amend the designated residential targeted area; and WHEREAS, the City has received a request to modify the designated residential targeted area to include additional properties located on the south side of SE Sedgwick Rd, near the intersection of Bethel Rd SE and SE Sedgwick Rd (Assessor’s File Nos. 122301-2-064-2003, 122301-2-063-2004 and 122301-2- 053-2006); and WHEREAS, the additional properties requested for inclusion meet the requirements for the multifamily property tax exemption as defined by Chapter 84.14 RCW; and WHEREAS, the City Council desires to include these additional properties in the designated residential targeted area, to encourage additional, affordable housing; and WHEREAS, Figure 1: Alternative 1 in Section 3.48.030 POMC has been revised to reflect the inclusion of the additional properties in the designated residential targeted area, as shown in Exhibit 1 of this Ordinance; and WHEREAS, on ***, 2018, the City Council held a properly-noticed public hearing according to the requirements of RCW 84.14.040 and Section 3.48.030(3) POMC (comments received?); NOW, THEREFORE, THE CITY COUNCIL OF THE CITY OF PORT ORCHARD, WASHINGTON, DOES HEREBY ORDAIN AS FOLLOWS: Section 1. Findings. The City Council hereby adopts the above recitals as findings in support of this ordinance. Section 2. POMC Chapter 3.48 Amended. Chapter 3.48 POMC as amended, which is attached as Exhibit 1 to this Ordinance and incorporated fully herein by this reference, Is hereby adopted. Page 75 of 132 2 of 12 Section 3. Severability. Should any section, paragraph, sentence, clause, or phrase of this ordinance, or its application to any person or circumstance, be declared unconstitutional or otherwise invalid by a court, board, or tribunal of competent jurisdiction, for any reason, or should any portion of this ordinance be pre-empted by state or federal law or regulation, such decision or preemption shall not affect the validity of the remaining portions of this ordinance or its application to other persons or circumstances. Section 4. Corrections. Upon the approval of the City Attorney, the City Clerk is authorized to make any necessary corrections to this ordinance including, but not limited to, the correction of scrivener’s/clerical errors, references, ordinance numbering, section/subsection numbers, and any reference thereto. Section 5. Effective Date; Publication. This ordinance shall take effect and be in full force immediately upon its passage. An approved summary of this ordinance consisting of the title shall be published in the official newspaper of the City. PASSED BY THE CITY COUNCIL OF THE CITY OF PORT ORCHARD, WASHINGTON, at a regular meeting thereof this **th day of ***, 2018, and SIGNED by the Mayor and attested by the Clerk in authentication of such passage this **th day of **, 2018. Robert Putaansuu, Mayor ATTESTED: Brandy Rinearson, CMC, City Clerk APPROVED AS TO FORM ONLY: Sharon Cates, City Attorney EXHIBITS: Exhibit 1 – Amended Chapter 3.48 POMC Page 76 of 132 3 of 12 Chapter 3.48 MULTIFAMILY PROPERTY TAX EXEMPTION Sections: 3.48.010 PURPOSE. 3.48.020 DEFINITIONS. 3.48.030 RESIDENTIAL TARGET AREAS—CRITERIA—DESIGNATION. 3.48.040 TERMS OF THE TAX EXEMPTION. 3.48.050 PROJECT ELIGIBILITY. 3.48.060 APPLICATION PROCEDURE. 3.48.070 APPLICATION REVIEW—ISSUANCE OF CONDITIONAL CERTIFICATE—DENIAL--APPEAL. 3.48.080 EXTENSION OF CONDITIONAL CERTIFICATE. 3.48.090 APPLICATION FOR FINAL CERTIFICATE. 3.48.100 ISSUANCE OF FINAL CERTIFICATE. 3.48.110 ANNUAL COMPLIANCE REVIEW--REPORTING. 3.48.120 CANCELLATION OF TAX EXEMPTION. 3.48.130 CONFLICT OF PROVISIONS. 3.48.010 PURPOSE. As provided for in Chapter 84.14 RCW, the purpose of this chapter is to provide limited exemptions from ad valorem property taxation for multifamily housing in designated residential targeted areas to: (1) Encourage increased residential opportunities, including affordable housing units, within areas of the City designated by the City Council as residential targeted areas; and/or (2) Stimulate new construction or rehabilitation of existing vacant and underutilized buildings for multifamily housing in designated residential targeted areas to increase and improve housing opportunities, including affordable housing; and (3) Accomplish the planning goals required under the Growth Management Act, Chapter 36.70A RCW as implemented by the City’s comprehensive plan. 3.48.020 DEFINITIONS. When used in this chapter, the following terms shall have the following meanings, unless the context indicates otherwise: (1) "Affordable housing" means the definition provided for in RCW 84.14.010. (2) "Department" means the City Department of Community Development. Page 77 of 132 4 of 12 (3) "Director" means the Director of the Department of Community Development, or designee. (4) "High-cost area" means the definition provided for in RCW 84.14.010. (5) "Household" means the definition provided for in RCW 84.14.010. (6) "Low-income household" means the definition provided for in RCW 84.14.010. (7) "Moderate-income household" means the definition provided for in RCW 84.14.010. (8) "Multifamily housing" (for the purposes of this section) means a building having ten (10) or more dwelling units not designed or used as transient accommodations and not including hotels and motels. Multifamily units may result from new construction or rehabilitated or conversion of vacant, underutilized, or substandard buildings to multifamily housing. (9) "Owner" means the definition provided for in RCW 84.14.010. (10) "Permanent residential occupancy" means the definition provided for in RCW 84.14.010. (11) "Rehabilitation improvements" means the definition provided for in RCW 84.14.010. (12) "Residential targeted area” means the definition provided for in RCW 84.14.010 and the area(s) that have been so designated by the City Council pursuant to this chapter. (13) "Substantial compliance" means the definition provided for in RCW 84.14.010. (14) “Urban center” means the definition provided for in RCW 84.14.010. 3.48.030 RESIDENTIAL TARGET AREAS—CRITERIA—DESIGNATION. (1) Following notice and public hearing as prescribed in RCW 84.14.040 of the City Council’s intention of designating a residential target area, the City Council may, in its sole discretion, designate one or more residential targeted areas. Each residential target area must meet the following criteria, as determined by the City Council: (a) The area is within an urban center; (b) The area lacks sufficient available, desirable, and convenient residential housing, including affordable housing, to meet the needs of the public who would be likely to live in the urban center if affordable, desirable, attractive, and livable residences were available; and (c) Providing additional housing opportunities, including affordable housing, in the area will assist in achieving one or more of the purposes of this chapter. (2) In designating a residential targeted area, the City Council may also consider other factors including, but not limited to: Page 78 of 132 5 of 12 (a) Additional housing, including affordable housing units, in the residential targeted area will attract and maintain an increase in the number of permanent residents; (b) An increased permanent residential population in the residential targeted area will help to achieve the planning goals mandated by the Growth Management Act under Chapter 36.70A RCW, as implemented through the City’s current and future comprehensive plans; (c) Encouraging additional housing in the residential targeted area is consistent with public transportation plans; or (d) Additional housing may contribute to revitalization of a distressed neighborhood or area within the City. (3) At any time the City Council may, by resolution, and in its sole discretion, amend or rescind the designation of a residential targeted area pursuant to the same procedural requirements as set forth in this chapter for original designation. (4) The following areas are designated as residential targeted areas under this chapter: Figure 1: Alternative 1 Page 79 of 132 6 of 12 (5) If a part of any legal lot is within a designated residential targeted area then the entire lot shall be deemed to lie within such residential targeted area. Property located outside of, but adjacent to, the described areas is not designated as residential targeted areas. 3.48.040 TERMS OF THE TAX EXEMPTION. (1) Duration of Exemption. The value of new housing construction, conversion, and rehabilitation improvements qualifying under this chapter is exempt from ad valorem property taxation, as follows: (a) For eight (8) successive years beginning January 1st of the year immediately following the calendar year of issuance of the certificate; or (b) For twelve (12) successive years beginning January 1st of the year immediately following the calendar year of issuance of the certificate, if the property otherwise qualifies for the exemption under this chapter and meets the conditions in this subsection (1)(b). For the property to qualify for the twelve (12) year exemption under this subsection, the applicant must commit to renting or selling at least twenty (20) percent of the multifamily housing units as affordable housing units to low- and moderate-income households, and the property must satisfy that commitment and any additional affordability and income eligibility conditions adopted by the City under this chapter. In the case of projects intended exclusively for owner occupancy, the minimum requirement of this subsection may be satisfied solely through housing affordable to moderate-income households. (i) If calculations for the minimum twenty (20) percent of the multifamily housing units required under this subsection result in a fraction, then the minimum number of multifamily housing units for affordable housing shall be rounded up to the next whole number. (ii) In projects granted 12-year exemptions, housing units identified for households with low, affordable, or moderate annual income shall continue to be made available to low, affordable, or moderate households for the length of the exemption period. (iii) The mix and configuration of housing units (e.g., studio, one-bedroom, two-bedroom) used to meet the requirement for affordable units under this subsection shall be substantially proportional to the mix and configuration of the total housing units in the project. (iv) When a project includes more than one building with multifamily housing units, all of the affordable housing units required in this subsection must not be located in the same building. (2) Limits on Exemption. The exemption does not apply: (a) To the value of land or to the value of non-housing-related improvements not qualifying under this chapter. (b) In the case of rehabilitation of existing buildings, to the value of improvements constructed prior to submission of the completed application required under this chapter. (c) To increases in assessed valuation made by the Kitsap County Assessor on non-qualifying portions of building or other improvements and value of land nor to increases made by lawful order of a County board of equalization, the Department of Revenue, or Kitsap County, to a class of property throughout the County or specific area of the County to achieve the uniformity of assessment or appraisal required by law. Page 80 of 132 7 of 12 (3) Conclusion of Exemption. At the conclusion of the exemption period, the new or rehabilitated housing cost shall be considered as new construction for the purposes of Chapter 84.55 RCW. 3.48.050 PROJECT ELIGIBILITY. A proposed multifamily housing project must meet all of the following requirements for consideration for a property tax exemption: (1) Location. The project must be located within a residential targeted area as defined in POMC 3.48.030. (2) Tenant Displacement Prohibited. The project must not displace existing residential tenants of structures that are proposed for redevelopment. If the property proposed to be rehabilitated is not vacant, an applicant shall provide each existing tenant housing of comparable size, quality, and price and a reasonable opportunity to relocate. (3) Noncompliance with Building Codes. Existing dwelling units proposed for rehabilitation must fail to comply with one or more standards of the applicable state or City building codes. (4) Size of Project. The new, converted, or rehabilitated multiple-unit housing must provide for a minimum of fifty (50) percent of the space for permanent residential occupancy. The project, whether new, converted, or rehabilitated multiple-unit housing, must include at least ten (10) units of multifamily housing within a residential structure or as part of an urban development. In the case of existing multifamily housing that is occupied or which has not been vacant for twelve (12) months or more, the multifamily housing project must also provide for a minimum of four (4) additional multifamily units for a total project of at least ten (10) units including the four (4) additional units. Existing multifamily housing that has been vacant for twelve (12) months or more does not have to provide additional units. (5) Proposed Completion Date. New construction of multifamily housing and rehabilitation improvements must be completed within three (3) years from the date of approval of the application. (6) Compliance with Guidelines and Standards. The project must be designed to comply with the City’s comprehensive plan, building, housing, and zoning codes, and any other applicable regulations. The project must also comply with any other standards and guidelines adopted by the City Council for the residential targeted area. 3.48.060 APPLICATION PROCEDURE. A property owner who wishes to propose a project for a tax exemption shall complete the following procedures: (1) The exemption application provided by the City shall be completed and filed with the Department prior to issuance of a building permit for the project. The completed application shall be accompanied by the application fee as authorized by RCW 84.14.080 and as set forth in the City’s current fee resolution. (2) The exemption application shall contain and require such information as deemed necessary by the Director, including: (a) A brief written description of the project, including timing and construction schedule, setting forth the grounds for the exemption. Page 81 of 132 8 of 12 (b) Floor and site plans of the proposed project, which may be revised by the owner, provided such revisions are made and presented to the Director prior to the City’s final action on the exemption application. (c) For rehabilitation projects, the applicant shall provide a report prepared by a registered architect identifying property noncompliance with current building codes. This report shall identify specific code violations and must include supporting data that satisfactorily explains and proves the presence of a violation. Supporting data must include a narrative and such graphic materials as needed to support this application. Graphic materials may include, but are not limited to, building plans, building details, and photographs. (d) If applying for a 12-year exemption, it shall include information describing how the applicant will comply with the affordability requirements set forth in POMC 3.48.040(1)(b). (e) A statement from the owner acknowledging the potential tax liability when the project ceases to be eligible under this chapter. (f) An affidavit signed by the owner stating the occupancy record of the property for a period of twelve (12) months prior to filing the application. (g) Verification of the correctness of the information submitted by the owner’s signature and affirmation made under penalty of perjury under the laws of the State of Washington. 3.48.070 APPLICATION REVIEW—ISSUANCE OF CONDITIONAL CERTIFICATE—DENIAL—APPEAL. (1) Director’s Decision. The Director may certify as eligible an application which is determined to comply with all applicable requirements of this chapter. A decision to approve or deny an application shall be made within ninety (90) calendar days of receipt of a complete application. (2) Approval of Application—Contract Required. If an application is approved, the applicant shall enter into a contract with the City, regarding the terms and conditions of implementation of the project, and pursuant to the following: (a) The contract shall be subject to approval by the City Council, in the form of a resolution, regarding the terms and conditions of the project and eligibility for exemption under this chapter. This contract shall be a covenant running with the land and shall be binding on the assigns, heirs, and successors of the applicant. (b) For any development project including owner-occupied units, the contract with the City shall also require that an owners association organized under RCW 64.34.300 be formed for all owner-occupied units within the development, for at least the length of the exemption period granted, to assume the responsibility for collecting from all individual unit owners the information and documents required to complete the annual reporting requirements and for filing the required annual report with the City for each of the individual homeowners pursuant to POMC 3.48.110. (c) Amendment of Contract. Within three (3) years of the date from the City Council’s approval of the contract, an owner may request an amendment(s) to the contract by submitting a request in writing to the Director. The fee for an amendment is as set forth in the City’s current fee resolution. The Director shall have authority to approve minor changes to the contract that are reasonably within the scope and intent of the contract approved by the City Council, as solely determined by the Director. Amendments that are not reasonably within the scope and intent of the approved contract, as solely determined by the Page 82 of 132 9 of 12 Director, shall be submitted to the City Council for review and approval. The date for expiration of the conditional certificate shall not be extended by contract amendment unless all the conditions for extension set forth in POMC 3.48.080 are met. (3) Issuance of Conditional Certificate. Upon City Council approval of the contract required under subsection (2) above, the Director shall issue a conditional certificate of acceptance of tax exemption. The conditional certificate shall expire three (3) years from the date of City Council approval unless an extension is granted as provided in this chapter. (4) Denial of Application. If an application is denied, the Director shall state in writing the reasons for denial and shall send notice to the applicant at the applicant’s last known address within ten (10) calendar days of issuance of the denial. (5) Appeal. Per RCW 84.14.070, an applicant may appeal a denial to the City Council within thirty (30) calendar days of receipt of the denial by filing a complete appeal application and fee, as set forth in the City’s current fee resolution, with the Director. The appeal before the City Council will be based on the record made before the Director. The Director’s decision shall be upheld unless the applicant can show that there is no substantial evidence on the record to support the Director’s decision. The City Council’s decision on appeal will be final. 3.48.080 EXTENSION OF CONDITIONAL CERTIFICATE. (1) Extension. The conditional certificate and time for completion of the project may be extended by the Director for a period not to exceed a total of twenty-four (24) consecutive months. To obtain an extension, the applicant must submit a written request with a fee, as set forth in the City’s current fee resolution, stating the grounds for the extension. An extension may be granted if the Director determines that: (a) The anticipated failure to complete construction or rehabilitation within the required time period is due to circumstances beyond the control of the owner; provided that financial hardship, regardless of the cause or reason, shall not be considered by the Director as a circumstance beyond the control of the owner in order to grant an extension; (b) The owner has been acting and could reasonably be expected to continue to act in good faith and with due diligence; and (c) All the conditions of the original contract (and as amended) between the applicant and the City will be satisfied upon completion of the project. (2) Denial of Extension. If an extension is denied, the Director shall state in writing the reason for denial and shall send notice to the applicant’s last known address within ten (10) calendar days of issuance of the denial. (3) Appeal. An applicant may appeal the denial of an extension to the Hearing Examiner within fourteen (14) calendar days of receipt of the denial by filing a complete appeal application and appeal fee with the Director. The appeal before the Hearing Examiner shall be processed as a closed record hearing. No appeal to the City Council is provided from the Hearing Examiner’s decision. 3.48.090 APPLICATION FOR FINAL CERTIFICATE. Upon completion of the improvements agreed upon in the contract between the applicant and the City and upon issuance of a temporary or permanent certificate of occupancy, the applicant may request a Page 83 of 132 10 of 12 final certificate of tax exemption by filing with the Director such information as the Director may deem necessary or useful to evaluate the eligibility for the final certificate, including the following: (1) A statement of expenditures made with respect to each multifamily housing unit and the total expenditures made with respect to the entire property; (2) A description of the completed work and a statement of qualification for the exemption; (3) The total monthly rent or total sale amount of each multifamily housing unit rented or sold to date; (4) A statement that the work was completed within the required three (3) year period or any authorized extension; (5) If a 12-year exemption, information on the applicant’s compliance with the affordability requirements of this chapter; and (6) Any additional information requested by the City pursuant to meeting any reporting requirements under Chapter 84.14 RCW. 3.48.100 ISSUANCE OF FINAL CERTIFICATE. (1) Director’s Decision. Within thirty (30) calendar days of receipt of all materials required for a final certificate, the Director shall determine whether the specific improvements satisfy the requirements of the contract, application, and this chapter. (2) Granting of Final Certificate. If the Director determines that the project has been completed in accordance with this chapter and the contract between the applicant and the City, and has been completed within the authorized time period, the City shall, within ten (10) calendar days of the expiration of the thirty (30) day review period above, file a final certificate of tax exemption with the Kitsap County Assessor. The Director is authorized to cause to be recorded, at the owner’s expense, in the real property records of the Kitsap County Department of Records, the contract with the City, as amended if applicable, and such other document(s) as will identify such terms and conditions of eligibility for exemption under this chapter as the Director deems appropriate for recording, including requirements under this chapter relating to affordability of units. (3) Denial of Final Certificate. The Director shall notify the applicant in writing that a final certificate will not be filed if the Director determines that: (a) The improvements were not completed within the authorized time period; (b) The improvements were not completed in accordance with the contract between the applicant and the City; or (c) The owner’s property is otherwise not qualified under this chapter. (3) Appeal. An applicant may appeal a denial of a final certificate to the Hearing Examiner within fourteen (14) calendar days of issuance of the denial of a final certificate by filing a complete appeal application and appeal fee with the Director. The appeal before the Hearing Examiner shall be processed as a closed record hearing. No appeal to the City Council is provided from the Hearing Examiner’s decision. Page 84 of 132 11 of 12 3.48.110 ANNUAL COMPLIANCE REVIEW—REPORTING. (1) Within thirty (30) calendar days after the first anniversary of the date of filing the final certificate of tax exemption and each year for the tax exemption period, the property owner shall be required to file a notarized declaration with the Director indicating the following: (a) A statement of occupancy and vacancy of the multifamily units during the previous twelve (12) months; (b) A certification by the owner that the property has not changed use and continues to be in compliance with the contract with the City and the applicable requirements of this chapter; (c) A description of changes or improvements to the property made after the City’s issuance of the final certificate of tax exemption; (d) The total monthly rent of each multifamily housing unit rented or the total sale amount of each unit sold during the 12 months ending with the anniversary date; (e) A breakdown of the number, type, and specific multifamily housing units rented or sold during the 12 months ending with the anniversary date; (f) If granted a 12-year exemption, information demonstrating the owner’s compliance with the affordability requirements of this chapter, including, but not limited to, the income of each renter household at the time of initial occupancy or the income of each purchaser of owner-occupied units at the time of purchase; (g) The value of the tax exemption for the project; and (h) Any additional information requested by the City pursuant to meeting any reporting requirements under Chapter 84.14 RCW. (2) City staff may also conduct on-site verification of the declaration and reporting required under this section. Failure to submit the annual declaration and report may result in cancellation of the tax exemption pursuant to this chapter and shall result in a review of the exemption per RCW 84.14.110. (3) If the city issues final tax exemption certificates pursuant to this chapter, the Director shall submit the report required by RCW 84.14.100 to the state Department of Commerce by December 31st of each year. 3.48.120 CANCELLATION OF TAX EXEMPTION. (1) The Director may cancel a tax exemption on a property if he/she determines any of the following: (a) The owner is not complying with the terms of the contract or this chapter; (b) The use of the property is changed or will be changed to a use that is other than residential; (c) The project violates applicable zoning requirements, land use regulations, building, or fire code requirements; or (d) The owner fails to submit the annual declaration and report specified in POMC 3.48.110. Page 85 of 132 12 of 12 (2) If the owner intends to convert the multifamily housing to another use, the owner shall notify the Director and the Kitsap County Assessor in writing within sixty (60) calendar days of the change in use. (3) Cancellation may occur in conjunction with the annual review or at any such time noncompliance has been determined. (4) Upon cancellation of the tax exemption, additional taxes, interest, and penalties shall be imposed on the property, and a priority lien may be placed on the land, pursuant to state law. (5) Notice of Cancellation. Upon determining that a tax exemption is to be canceled, pursuant to RCW 84.14.110(2), the Director shall notify the owner by mail, return receipt requested. (6) Appeal of Cancellation. The owner may appeal the determination of cancellation to the Hearing Examiner by filing a notice of appeal and appeal fee with the City Clerk within thirty (30) calendar days of the date of the notice of cancellation, specifying the factual and legal basis for the appeal. The appeal shall be heard by the Hearing Examiner as a closed record hearing. No appeal to the City Council is provided from the Hearing Examiner’s decision. 3.48.130 CONFLICT OF PROVISIONS. If any provision of this chapter is in legal conflict with the provisions of Chapter 84.14 RCW, as currently adopted or hereafter amended, the provisions of Chapter 84.14 RCW shall apply as if set forth in this chapter. Page 86 of 132 1 of 13 ORDINANCE NO. XX-18 ALTERNATIVE 2 AN ORDINANCE OF THE CITY OF PORT ORCHARD, WASHINGTON, AMENDING PORT ORCHARD MUNICIPAL CODE CHAPTER 3.48; EXPANDING THE RESIDENTIAL TARGETED AREA FOR MULTIFAMILY PROPERTY TAX EXEMPTION; AMENDING THE DESIGNATED RESIDENTIAL TARGETED AREA AND REQUIREMENTS FOR 12-YEAR MULTIFAMILY TAX EXEMPTIONS; PROVIDING FOR SEVERABILITY AND CORRECTIONS; AND SETTING AN EFFECTIVE DATE. WHEREAS, on July 26, 2016, the City Council adopted Ordinance No. 023-16, which created Chapter 3.48 of the Port Orchard Municipal Code (Multifamily Property Tax Exemption); and WHEREAS, Figure 1: Alternative 1 in Chapter 3.48.030 POMC shows the designated residential targeted area for multifamily property tax exemption; and WHEREAS, Section 3.48.030(3) POMC provides that the City Council may amend the designated residential targeted area; and WHEREAS, the City has received a request to modify the designated residential targeted area to include additional properties located on the south side of SE Sedgwick Rd, near the intersection of Bethel Rd SE and SE Sedgwick Rd (Assessor’s File Nos. 122301-2-064-2003, 122301-2-063-2004 and 122301-2- 053-2006); and WHEREAS, the additional properties requested for inclusion meet the requirements for the multifamily property tax exemption as defined by Chapter 84.14 RCW; and WHEREAS, the City Council desires to include these additional properties in the designated residential targeted area, to encourage additional, affordable housing; and WHEREAS, Figure 1: Alternative 1 in Section 3.48.030 POMC has been revised to reflect the inclusion of the additional properties in the designated residential targeted area, as shown in Exhibit 1 of this Ordinance; and WHEREAS, the current market rate for rental housing costs in Port Orchard is significantly below the average rental cost for Kitsap County’s other cities, and WHEREAS, the City Council wishes to further the City’s goals of redevelopment and additional, affordable residential units within the City’s downtown area; and WHEREAS, the City Council therefore desires to amend the boundaries of the designated residential targeted area, so that the 12-year tax exemption shall apply to only the downtown area, as indicated in Figure 1 of Exhibit 1; and Page 87 of 132 2 of 13 WHEREAS, on ***, 2018, the City Council held a properly-noticed public hearing according to the requirements of RCW 84.14.040 and Section 3.48.030(3) POMC (comments received?); NOW, THEREFORE, THE CITY COUNCIL OF THE CITY OF PORT ORCHARD, WASHINGTON, DOES HEREBY ORDAIN AS FOLLOWS: Section 1. Findings. The City Council hereby adopts the above recitals as findings in support of this ordinance. Section 2. POMC Chapter 3.48 Amended. Chapter 3.48 POMC as amended, which is attached as Exhibit 1 to this Ordinance and incorporated fully herein by this reference, Is hereby adopted. Section 3. Severability. Should any section, paragraph, sentence, clause, or phrase of this ordinance, or its application to any person or circumstance, be declared unconstitutional or otherwise invalid by a court, board, or tribunal of competent jurisdiction, for any reason, or should any portion of this ordinance be pre-empted by state or federal law or regulation, such decision or preemption shall not affect the validity of the remaining portions of this ordinance or its application to other persons or circumstances. Section 4. Corrections. Upon the approval of the City Attorney, the City Clerk is authorized to make any necessary corrections to this ordinance including, but not limited to, the correction of scrivener’s/clerical errors, references, ordinance numbering, section/subsection numbers, and any reference thereto. Section 5. Effective Date; Publication. This ordinance shall take effect and be in full force immediately upon its passage. An approved summary of this ordinance consisting of the title shall be published in the official newspaper of the City. PASSED BY THE CITY COUNCIL OF THE CITY OF PORT ORCHARD, WASHINGTON, at a regular meeting thereof this **th day of ***, 2018, and SIGNED by the Mayor and attested by the Clerk in authentication of such passage this **th day of **, 2018. Robert Putaansuu, Mayor ATTESTED: Brandy Rinearson, CMC, City Clerk APPROVED AS TO FORM ONLY: Sharon Cates, City Attorney Page 88 of 132 3 of 13 EXHIBITS: Exhibit 1 – Amended Chapter 3.48 POMC Page 89 of 132 4 of 13 Chapter 3.48 MULTIFAMILY PROPERTY TAX EXEMPTION Sections: 3.48.010 PURPOSE. 3.48.020 DEFINITIONS. 3.48.030 RESIDENTIAL TARGET AREAS—CRITERIA—DESIGNATION. 3.48.040 TERMS OF THE TAX EXEMPTION. 3.48.050 PROJECT ELIGIBILITY. 3.48.060 APPLICATION PROCEDURE. 3.48.070 APPLICATION REVIEW—ISSUANCE OF CONDITIONAL CERTIFICATE—DENIAL-- APPEAL. 3.48.080 EXTENSION OF CONDITIONAL CERTIFICATE. 3.48.090 APPLICATION FOR FINAL CERTIFICATE. 3.48.100 ISSUANCE OF FINAL CERTIFICATE. 3.48.110 ANNUAL COMPLIANCE REVIEW--REPORTING. 3.48.120 CANCELLATION OF TAX EXEMPTION. 3.48.130 CONFLICT OF PROVISIONS. 3.48.010 PURPOSE. As provided for in Chapter 84.14 RCW, the purpose of this chapter is to provide limited exemptions from ad valorem property taxation for multifamily housing in designated residential targeted areas to: (1) Encourage increased residential opportunities, including affordable housing units, within areas of the City designated by the City Council as residential targeted areas; and/or (2) Stimulate new construction or rehabilitation of existing vacant and underutilized buildings for multifamily housing in designated residential targeted areas to increase and improve housing opportunities, including affordable housing; and (3) Accomplish the planning goals required under the Growth Management Act, Chapter 36.70A RCW as implemented by the City’s comprehensive plan. 3.48.020 DEFINITIONS. When used in this chapter, the following terms shall have the following meanings, unless the context indicates otherwise: (1) "Affordable housing" means the definition provided for in RCW 84.14.010. Page 90 of 132 5 of 13 (2) "Department" means the City Department of Community Development. (3) "Director" means the Director of the Department of Community Development, or designee. (4) "High-cost area" means the definition provided for in RCW 84.14.010. (5) "Household" means the definition provided for in RCW 84.14.010. (6) "Low-income household" means the definition provided for in RCW 84.14.010. (7) "Moderate-income household" means the definition provided for in RCW 84.14.010. (8) "Multifamily housing" (for the purposes of this section) means a building having ten (10) or more dwelling units not designed or used as transient accommodations and not including hotels and motels. Multifamily units may result from new construction or rehabilitated or conversion of vacant, underutilized, or substandard buildings to multifamily housing. (9) "Owner" means the definition provided for in RCW 84.14.010. (10) "Permanent residential occupancy" means the definition provided for in RCW 84.14.010. (11) "Rehabilitation improvements" means the definition provided for in RCW 84.14.010. (12) "Residential targeted area” means the definition provided for in RCW 84.14.010 and the area(s) that have been so designated by the City Council pursuant to this chapter. (13) "Substantial compliance" means the definition provided for in RCW 84.14.010. (14) “Urban center” means the definition provided for in RCW 84.14.010. 3.48.030 RESIDENTIAL TARGET AREAS—CRITERIA—DESIGNATION. (1) Following notice and public hearing as prescribed in RCW 84.14.040 of the City Council’s intention of designating a residential target area, the City Council may, in its sole discretion, designate one or more residential targeted areas. Each residential target area must meet the following criteria, as determined by the City Council: (a) The area is within an urban center; (b) The area lacks sufficient available, desirable, and convenient residential housing, including affordable housing, to meet the needs of the public who would be likely to live in the urban center if affordable, desirable, attractive, and livable residences were available; and (c) Providing additional housing opportunities, including affordable housing, in the area will assist in achieving one or more of the purposes of this chapter. (2) In designating a residential targeted area, the City Council may also consider other factors including, but not limited to: Page 91 of 132 6 of 13 (a) Additional housing, including affordable housing units, in the residential targeted area will attract and maintain an increase in the number of permanent residents; (b) An increased permanent residential population in the residential targeted area will help to achieve the planning goals mandated by the Growth Management Act under Chapter 36.70A RCW, as implemented through the City’s current and future comprehensive plans; (c) Encouraging additional housing in the residential targeted area is consistent with public transportation plans; or (d) Additional housing may contribute to revitalization of a distressed neighborhood or area within the City. (3) At any time the City Council may, by resolution, and in its sole discretion, amend or rescind the designation of a residential targeted area pursuant to the same procedural requirements as set forth in this chapter for original designation. (4) The following areas are designated as residential targeted areas under this chapter: Figure 1: Alternative 1 Page 92 of 132 7 of 13 (5) If a part of any legal lot is within a designated residential targeted area then the entire lot shall be deemed to lie within such residential targeted area. Property located outside of, but adjacent to, the described areas is not designated as residential targeted areas. 3.48.040 TERMS OF THE TAX EXEMPTION. (1) Duration of Exemption. The value of new housing construction, conversion, and rehabilitation improvements qualifying under this chapter is exempt from ad valorem property taxation, as follows: (a) Within the areas shown as “8 Year Eligible Area” and “12 Year Eligible Area” in Figure 1 of this chapter, fFor eight (8) successive years beginning January 1st of the year immediately following the calendar year of issuance of the certificate. No requirements for affordable housing are required for an eight-year tax exemption within either of these areas; or (b) Within the area shown as “12 Year Eligible Area in Figure 1 of this chapter, fFor twelve (12) successive years beginning January 1st of the year immediately following the calendar year of issuance of the certificate, if the property otherwise qualifies for the exemption under this chapter and meets the conditions in this subsection (1)(b). For the property to qualify for the twelve (12) year exemption under this subsection, the applicant must commit to renting or selling at least twenty (20) percent of the multifamily housing units as affordable housing units to low- and moderate-income households, and the property must satisfy that commitment and any additional affordability and income eligibility conditions adopted by the City under this chapter. In the case of projects intended exclusively for owner occupancy, the minimum requirement of this subsection may be satisfied solely through housing affordable to moderate-income households. (i) If calculations for the minimum twenty (20) percent of the multifamily housing units required under this subsection result in a fraction, then the minimum number of multifamily housing units for affordable housing shall be rounded up to the next whole number. (ii) In projects granted 12-year exemptions, housing units identified for households with low, affordable, or moderate annual income shall continue to be made available to low, affordable, or moderate households for the length of the exemption period. (iii) The mix and configuration of housing units (e.g., studio, one-bedroom, two-bedroom) used to meet the requirement for affordable units under this subsection shall be substantially proportional to the mix and configuration of the total housing units in the project. (iv) When a project includes more than one building with multifamily housing units, all of the affordable housing units required in this subsection must not be located in the same building. (2) Limits on Exemption. The exemption does not apply: (a) To the value of land or to the value of non-housing-related improvements not qualifying under this chapter. (b) In the case of rehabilitation of existing buildings, to the value of improvements constructed prior to submission of the completed application required under this chapter. (c) To increases in assessed valuation made by the Kitsap County Assessor on non-qualifying portions of building or other improvements and value of land nor to increases made by lawful order of a Page 93 of 132 8 of 13 County board of equalization, the Department of Revenue, or Kitsap County, to a class of property throughout the County or specific area of the County to achieve the uniformity of assessment or appraisal required by law. (3) Conclusion of Exemption. At the conclusion of the exemption period, the new or rehabilitated housing cost shall be considered as new construction for the purposes of Chapter 84.55 RCW. 3.48.050 PROJECT ELIGIBILITY. A proposed multifamily housing project must meet all of the following requirements for consideration for a property tax exemption: (1) Location. The project must be located within a residential targeted area as defined in POMC 3.48.030. (2) Tenant Displacement Prohibited. The project must not displace existing residential tenants of structures that are proposed for redevelopment. If the property proposed to be rehabilitated is not vacant, an applicant shall provide each existing tenant housing of comparable size, quality, and price and a reasonable opportunity to relocate. (3) Noncompliance with Building Codes. Existing dwelling units proposed for rehabilitation must fail to comply with one or more standards of the applicable state or City building codes. (4) Size of Project. The new, converted, or rehabilitated multiple-unit housing must provide for a minimum of fifty (50) percent of the space for permanent residential occupancy. The project, whether new, converted, or rehabilitated multiple-unit housing, must include at least ten (10) units of multifamily housing within a residential structure or as part of an urban development. In the case of existing multifamily housing that is occupied or which has not been vacant for twelve (12) months or more, the multifamily housing project must also provide for a minimum of four (4) additional multifamily units for a total project of at least ten (10) units including the four (4) additional units. Existing multifamily housing that has been vacant for twelve (12) months or more does not have to provide additional units. (5) Proposed Completion Date. New construction of multifamily housing and rehabilitation improvements must be completed within three (3) years from the date of approval of the application. (6) Compliance with Guidelines and Standards. The project must be designed to comply with the City’s comprehensive plan, building, housing, and zoning codes, and any other applicable regulations. The project must also comply with any other standards and guidelines adopted by the City Council for the residential targeted area. 3.48.060 APPLICATION PROCEDURE. A property owner who wishes to propose a project for a tax exemption shall complete the following procedures: (1) The exemption application provided by the City shall be completed and filed with the Department prior to issuance of a building permit for the project. The completed application shall be accompanied by the application fee as authorized by RCW 84.14.080 and as set forth in the City’s current fee resolution. (2) The exemption application shall contain and require such information as deemed necessary by the Director, including: Page 94 of 132 9 of 13 (a) A brief written description of the project, including timing and construction schedule, setting forth the grounds for the exemption. (b) Floor and site plans of the proposed project, which may be revised by the owner, provided such revisions are made and presented to the Director prior to the City’s final action on the exemption application. (c) For rehabilitation projects, the applicant shall provide a report prepared by a registered architect identifying property noncompliance with current building codes. This report shall identify specific code violations and must include supporting data that satisfactorily explains and proves the presence of a violation. Supporting data must include a narrative and such graphic materials as needed to support this application. Graphic materials may include, but are not limited to, building plans, building details, and photographs. (d) If applying for a 12-year exemption, it shall include information describing how the applicant will comply with the affordability requirements set forth in POMC 3.48.040(1)(b). (e) A statement from the owner acknowledging the potential tax liability when the project ceases to be eligible under this chapter. (f) An affidavit signed by the owner stating the occupancy record of the property for a period of twelve (12) months prior to filing the application. (g) Verification of the correctness of the information submitted by the owner’s signature and affirmation made under penalty of perjury under the laws of the State of Washington. 3.48.070 APPLICATION REVIEW—ISSUANCE OF CONDITIONAL CERTIFICATE—DENIAL—APPEAL. (1) Director’s Decision. The Director may certify as eligible an application which is determined to comply with all applicable requirements of this chapter. A decision to approve or deny an application shall be made within ninety (90) calendar days of receipt of a complete application. (2) Approval of Application—Contract Required. If an application is approved, the applicant shall enter into a contract with the City, regarding the terms and conditions of implementation of the project, and pursuant to the following: (a) The contract shall be subject to approval by the City Council, in the form of a resolution, regarding the terms and conditions of the project and eligibility for exemption under this chapter. This contract shall be a covenant running with the land and shall be binding on the assigns, heirs, and successors of the applicant. (b) For any development project including owner-occupied units, the contract with the City shall also require that an owners association organized under RCW 64.34.300 be formed for all owner-occupied units within the development, for at least the length of the exemption period granted, to assume the responsibility for collecting from all individual unit owners the information and documents required to complete the annual reporting requirements and for filing the required annual report with the City for each of the individual homeowners pursuant to POMC 3.48.110. (c) Amendment of Contract. Within three (3) years of the date from the City Council’s approval of the contract, an owner may request an amendment(s) to the contract by submitting a request in writing to the Director. The fee for an amendment is as set forth in the City’s current fee resolution. The Director Page 95 of 132 10 of 13 shall have authority to approve minor changes to the contract that are reasonably within the scope and intent of the contract approved by the City Council, as solely determined by the Director. Amendments that are not reasonably within the scope and intent of the approved contract, as solely determined by the Director, shall be submitted to the City Council for review and approval. The date for expiration of the conditional certificate shall not be extended by contract amendment unless all the conditions for extension set forth in POMC 3.48.080 are met. (3) Issuance of Conditional Certificate. Upon City Council approval of the contract required under subsection (2) above, the Director shall issue a conditional certificate of acceptance of tax exemption. The conditional certificate shall expire three (3) years from the date of City Council approval unless an extension is granted as provided in this chapter. (4) Denial of Application. If an application is denied, the Director shall state in writing the reasons for denial and shall send notice to the applicant at the applicant’s last known address within ten (10) calendar days of issuance of the denial. (5) Appeal. Per RCW 84.14.070, an applicant may appeal a denial to the City Council within thirty (30) calendar days of receipt of the denial by filing a complete appeal application and fee, as set forth in the City’s current fee resolution, with the Director. The appeal before the City Council will be based on the record made before the Director. The Director’s decision shall be upheld unless the applicant can show that there is no substantial evidence on the record to support the Director’s decision. The City Council’s decision on appeal will be final. 3.48.080 EXTENSION OF CONDITIONAL CERTIFICATE. (1) Extension. The conditional certificate and time for completion of the project may be extended by the Director for a period not to exceed a total of twenty-four (24) consecutive months. To obtain an extension, the applicant must submit a written request with a fee, as set forth in the City’s current fee resolution, stating the grounds for the extension. An extension may be granted if the Director determines that: (a) The anticipated failure to complete construction or rehabilitation within the required time period is due to circumstances beyond the control of the owner; provided that financial hardship, regardless of the cause or reason, shall not be considered by the Director as a circumstance beyond the control of the owner in order to grant an extension; (b) The owner has been acting and could reasonably be expected to continue to act in good faith and with due diligence; and (c) All the conditions of the original contract (and as amended) between the applicant and the City will be satisfied upon completion of the project. (2) Denial of Extension. If an extension is denied, the Director shall state in writing the reason for denial and shall send notice to the applicant’s last known address within ten (10) calendar days of issuance of the denial. (3) Appeal. An applicant may appeal the denial of an extension to the Hearing Examiner within fourteen (14) calendar days of receipt of the denial by filing a complete appeal application and appeal fee with the Director. The appeal before the Hearing Examiner shall be processed as a closed record hearing. No appeal to the City Council is provided from the Hearing Examiner’s decision. Page 96 of 132 11 of 13 3.48.090 APPLICATION FOR FINAL CERTIFICATE. Upon completion of the improvements agreed upon in the contract between the applicant and the City and upon issuance of a temporary or permanent certificate of occupancy, the applicant may request a final certificate of tax exemption by filing with the Director such information as the Director may deem necessary or useful to evaluate the eligibility for the final certificate, including the following: (1) A statement of expenditures made with respect to each multifamily housing unit and the total expenditures made with respect to the entire property; (2) A description of the completed work and a statement of qualification for the exemption; (3) The total monthly rent or total sale amount of each multifamily housing unit rented or sold to date; (4) A statement that the work was completed within the required three (3) year period or any authorized extension; (5) If a 12-year exemption, information on the applicant’s compliance with the affordability requirements of this chapter; and (6) Any additional information requested by the City pursuant to meeting any reporting requirements under Chapter 84.14 RCW. 3.48.100 ISSUANCE OF FINAL CERTIFICATE. (1) Director’s Decision. Within thirty (30) calendar days of receipt of all materials required for a final certificate, the Director shall determine whether the specific improvements satisfy the requirements of the contract, application, and this chapter. (2) Granting of Final Certificate. If the Director determines that the project has been completed in accordance with this chapter and the contract between the applicant and the City, and has been completed within the authorized time period, the City shall, within ten (10) calendar days of the expiration of the thirty (30) day review period above, file a final certificate of tax exemption with the Kitsap County Assessor. The Director is authorized to cause to be recorded, at the owner’s expense, in the real property records of the Kitsap County Department of Records, the contract with the City, as amended if applicable, and such other document(s) as will identify such terms and conditions of eligibility for exemption under this chapter as the Director deems appropriate for recording, including requirements under this chapter relating to affordability of units. (3) Denial of Final Certificate. The Director shall notify the applicant in writing that a final certificate will not be filed if the Director determines that: (a) The improvements were not completed within the authorized time period; (b) The improvements were not completed in accordance with the contract between the applicant and the City; or (c) The owner’s property is otherwise not qualified under this chapter. (3) Appeal. An applicant may appeal a denial of a final certificate to the Hearing Examiner within fourteen (14) calendar days of issuance of the denial of a final certificate by filing a complete appeal Page 97 of 132 12 of 13 application and appeal fee with the Director. The appeal before the Hearing Examiner shall be processed as a closed record hearing. No appeal to the City Council is provided from the Hearing Examiner’s decision. 3.48.110 ANNUAL COMPLIANCE REVIEW—REPORTING. (1) Within thirty (30) calendar days after the first anniversary of the date of filing the final certificate of tax exemption and each year for the tax exemption period, the property owner shall be required to file a notarized declaration with the Director indicating the following: (a) A statement of occupancy and vacancy of the multifamily units during the previous twelve (12) months; (b) A certification by the owner that the property has not changed use and continues to be in compliance with the contract with the City and the applicable requirements of this chapter; (c) A description of changes or improvements to the property made after the City’s issuance of the final certificate of tax exemption; (d) The total monthly rent of each multifamily housing unit rented or the total sale amount of each unit sold during the 12 months ending with the anniversary date; (e) A breakdown of the number, type, and specific multifamily housing units rented or sold during the 12 months ending with the anniversary date; (f) If granted a 12-year exemption, information demonstrating the owner’s compliance with the affordability requirements of this chapter, including, but not limited to, the income of each renter household at the time of initial occupancy or the income of each purchaser of owner-occupied units at the time of purchase; (g) The value of the tax exemption for the project; and (h) Any additional information requested by the City pursuant to meeting any reporting requirements under Chapter 84.14 RCW. (2) City staff may also conduct on-site verification of the declaration and reporting required under this section. Failure to submit the annual declaration and report may result in cancellation of the tax exemption pursuant to this chapter and shall result in a review of the exemption per RCW 84.14.110. (3) If the city issues final tax exemption certificates pursuant to this chapter, the Director shall submit the report required by RCW 84.14.100 to the state Department of Commerce by December 31st of each year. 3.48.120 CANCELLATION OF TAX EXEMPTION. (1) The Director may cancel a tax exemption on a property if he/she determines any of the following: (a) The owner is not complying with the terms of the contract or this chapter; (b) The use of the property is changed or will be changed to a use that is other than residential; (c) The project violates applicable zoning requirements, land use regulations, building, or fire code requirements; or Page 98 of 132 13 of 13 (d) The owner fails to submit the annual declaration and report specified in POMC 3.48.110. (2) If the owner intends to convert the multifamily housing to another use, the owner shall notify the Director and the Kitsap County Assessor in writing within sixty (60) calendar days of the change in use. (3) Cancellation may occur in conjunction with the annual review or at any such time noncompliance has been determined. (4) Upon cancellation of the tax exemption, additional taxes, interest, and penalties shall be imposed on the property, and a priority lien may be placed on the land, pursuant to state law. (5) Notice of Cancellation. Upon determining that a tax exemption is to be canceled, pursuant to RCW 84.14.110(2), the Director shall notify the owner by mail, return receipt requested. (6) Appeal of Cancellation. The owner may appeal the determination of cancellation to the Hearing Examiner by filing a notice of appeal and appeal fee with the City Clerk within thirty (30) calendar days of the date of the notice of cancellation, specifying the factual and legal basis for the appeal. The appeal shall be heard by the Hearing Examiner as a closed record hearing. No appeal to the City Council is provided from the Hearing Examiner’s decision. 3.48.130 CONFLICT OF PROVISIONS. If any provision of this chapter is in legal conflict with the provisions of Chapter 84.14 RCW, as currently adopted or hereafter amended, the provisions of Chapter 84.14 RCW shall apply as if set forth in this chapter. Page 99 of 132 Sedgwick Road Multifamily Tax Abatement Request 1 November 2018 Page 100 of 132 Project Overview / Current Efforts and Timeline Planned Scope and Value ▪Parcel(s) ▪122301-2-053-2006 ▪122301-2-064-2003 ▪122301-2-063-2004 ▪Approx. 8.27 Acres Developed ▪Anticipating Zoned “Mixed Use” ▪5 Buildings –Low Rise Garden ▪113 Units (3/2/1 Bedrooms) ▪Community Center (2700SF) ▪Open Space (9000SF) ▪Wetland Buffer Requirements Met ▪Dog Park / Bicycle Repair Station ▪Value at Completion –Approx $27MM Current Efforts and Timeline ▪40% Design -Complete ▪Traffic Impact Analysis –Complete ▪Wetland Survey –Complete ▪Pre-Application with City of Port Orchard -Complete ▪Submit for Conditional use Permit –11/5/18 ▪Secure Water/Sewer Availability Letters –12/1/18 ▪Building Permits Impact Fees ($1.27MM) Paid – 3/1/19 ▪Begin Construction –Mar/Apr 2019 Page 101 of 132 Project Contributions Required Impact Fees -$1.27 MM (Due at Approved Building Permit 3/1/19) ▪School -$97,293 ($861 PU) ▪Traffic –$178,810.07 ($1582.39 PU) ▪Park -$20,792 ($584 PU) ▪Water –$310,354.50 ($2746.50 PU) ▪Sewer General –$319,592.25 ($2828.25 PU) ▪Sewer Treatment -$307,134.00 ($2718 PU) Total $1,279,175.82 ▪Provide approximately 300 additional resident housing ▪20’ Frontage Currently in Right of Way on Sedgwick Road provided back to City at Market Value Ta x Distribution (Estimated) Page 102 of 132 Potential Future Tax Revenue (Based on $27MM Value and 1.1% Tax Rate) $0.00 $2,000,000.00 $4,000,000.00 $6,000,000.00 $8,000,000.00 $10,000,000.00 $12,000,000.00 Cumulative Tax Revenue in $Tax Revenue Year Revenue in $$ 8 Year Tax Abatement Period Page 103 of 132 Requested Tax Abatement Parcels Page 104 of 132 Formal Request to Change Municipal Code ▪Requesting Port Orchard Municipal Code -3.48.030 Residential target areas – Criteria –Designation, be redrawn to include the following Parcel(s) -122301-2- 064-2003,122301-2-063-2004 and 122301-2-053-2006. Page 105 of 132 Municipal Code –3.48.030 (1)Following notice and public hearing as prescribed in RCW 84.14.040 of the city council’s intention of designating a residential target area, the city council may, in its sole discretion, desig nate one or more residential targeted areas. Each residential target area must meet the following criteria, as determined by the city council: (a)The area is within an urban center; (b)The area lacks sufficient available, desirable, and convenient residential housing, including affordable housing, to meet th e needs of the public who would be likely to live in the urban center if affordable, desirable, attractive, and livable residences were available; and (c)Providing additional housing opportunities, including affordable housing, in the area will assist in achieving one or more o f the purposes of this chapter. (2)In designating a residential targeted area, the city council may also consider other factors including, but not limited to: (a)Additional housing, including affordable housing units, in the residential targeted area will attract and maintain an increa se in the number of permanent residents; (b)An increased permanent residential population in the residential targeted area will help to achieve the planning goals manda ted by the Growth Management Act under Chapter 36.70A RCW, as implemented through the city’s current and future comprehensive plans; (c)Encouraging additional housing in the residential targeted area is consistent with public transportation plans; or (d)Additional housing may contribute to revitalization of a distressed neighborhood or area within the city. (3)At any time the city council may, by resolution, and in its sole discretion, amend or rescind the designation of a residenti al targeted area pursuant to the same procedural requirements as set forth in this chapter for original designation. (4)The following areas are designated as residential targeted areas under this chapter, as shown on the map labeled Figure 1: A lternative 1: (5)If a part of any legal lot is within a designated residential targeted area then the entire lot shall be deemed to lie withi n such residential targeted area. Property located outside of, but adjacent to, the described areas is not designated as residential targeted areas. (Ord. 023 -16 §2). Page 106 of 132 City of Port Orchard Work Study Session Executive Summary Issue Title: Disbursement of Funds Resolution and Policies Meeting Date: November 20, 2018 Time Required: 15 minutes Attendees: None Action Requested At This Meeting: Provide any comments on the policies. Background: The City desires to pay its claims and obligations in a timely manner to meet the city’s business needs. The current process for approving claims and releasing payments to obligated parties is structured around the timing of council meetings. The timing of council meetings does not necessarily meet the business practices of the city or the vendors that work for the city. City staff have worked to create a Policy for the Disbursement of Funds prior to council approval including proper expenditure controls. The purpose of the policy is to delegate authority to the finance department to release payments to obligated parties as a function of city business. This requires maintaining proper internal controls in accordance with the State Auditors requirements as well as controls to meet council approval. The policy will allow the executive branch of the city to operate and pay claims on a business need irrespective of the timing of council meetings. It maintains the requirement for council approval on all claims approved for payment. Alternatives: N/A Recommendation: The Finance Department recommends approving the resolution establishing the Disbursement of Funds Policy. Relationship to Comprehensive Plan: N/A Attachments: Will be provided at meeting. Follow-up Notes & Outcomes: Page 107 of 132 This Page Intentionally Left Blank Page 108 of 132 City of Port Orchard Work Study Session Executive Summary Issue Title: POMC 10.12 Proposed Changes and Updates Meeting Date: November 20, 2018 Time Required: 15 Minutes Attendees: Mark R. Dorsey, P.E, Public Works Director/City Engineer Action Requested At This Meeting: Discussion and direction to staff regarding proposed revisions to POMC 10.12. Background/Issue: At the November 5, 2018 Land Use Committee Meeting, three parking related issues were discussed as follows; 1) the south side of Bay Street, east of Dekalb Street, 2) Etta Turner Park and 3) Tracy Avenue. Item No. 1 is complaint-based and involves inadequate sight distance given current on-street parking allowances. Item No. 2 involves an area within the Water Street Waterway whereby no formal parking has been established by code for Etta Turner Park, but parking in that area has become a healthy and safety issue and is further complicated by a recripical use condition recorded in 2013. Item No. 3 was initiated as a request for No Parking at a specific location along Tracy Avenue, but the Public Works Department has looked at the Tracy Avenue pakring issue wholistically. An additional item, parking along the north side of Horstman, has been added as well. Alternatives: As directed by Council. Recommendation: Staff recommends discussing the issue, and then be given direction to proceed. Relationship to Comprehensive Plan: None Attachments: Dekalb/Bay Street Sight Distance Diagram Etta Turner Park Parking Sketch Section 4.2 – Contract No. C030-13 Tracy Avenue Parking Sketch Draft Ord. No. 035-18 w/ Staff Report Hostman email/response Page 109 of 132 This Page Intentionally Left Blank Page 110 of 132 Page 111 of 132 Page 112 of 132 Page 113 of 132 Page 114 of 132 Page 115 of 132 Page 116 of 132 Page 117 of 132 Page 118 of 132 Page 119 of 132 Page 120 of 132 Page 121 of 132 Page 122 of 132 Page 123 of 132 Page 124 of 132 Page 125 of 132 Page 126 of 132 Page 127 of 132 Page 128 of 132 Page 129 of 132 Page 130 of 132 Page 131 of 132 Page 132 of 132