Loading...
12/18/2018 - Regular - Packet City of Port Orchard Council Meeting Agenda December 18, 2018 6:30 p.m. 1. CALL TO ORDER A. Pledge of Allegiance 2. APPROVAL OF AGENDA 3. CITIZENS COMMENTS (Please limit your comments to 3 minutes for items listed on the Agenda and that are not for a Public Hearing. When recognized by the Mayor, please state your name for the official record) 4. CONSENT AGENDA (Approval of Consent Agenda passes all routine items listed below, which have been distributed to each Councilmember for reading and study. Consent Agenda items are not considered separately unless a Councilmember so requests. In the event of such a request, the item is returned to Business Items.) A. Adoption of an Ordinance Amending Port Orchard Municipal Code Chapter 5.96 Temporary Vendors (Rinearson) Page 3 B. Adoption of a Resolution Confirming Appointments to the Kitsap Transit Board (Rinearson) Page 15 C. Adoption of a Resolution Confirming Appointments to Kitsap 911 Board of Directors (Rinearson) Page 19 5. PRESENTATION 6. PUBLIC HEARING A. Multifamily Property Tax Exemption Revisions (Bond) Page 23 7. BUSINESS ITEMS A. Adoption of an Ordinance Adopting Revisions to Port Orchard Municipal Code Chapter 3.48 Multifamily Property Tax Exemption (Bond) Page 49 B. Adoption of an Ordinance Amending the 2017-2018 Biennial Budget (Crocker) Page 53 C. Adoption of an Ordinance Ratifying the Collective Bargaining Agreement with Teamsters Local No. 589 Representing the Municipal Court Employees (Howard) Page 63 D. Adoption of an Ordinance Ratifying the Collective Bargaining Agreement with Teamsters Local No. 589 Representing the Police Support Staff Employees (Howard) Page 67 E. Adoption of an Ordinance Ratifying the Collective Bargaining Agreement with Teamsters Local No. 589 for Public Works Employees (Howard) Page 71 F. Adoption of an Ordinance Establishing Certain Employee Benefits for Non-Union Represented Employees Classified as FLSA Non-Exempt and Executive Exempt (Howard) Page 75 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 Please turn off cell phones during meeting and hold your questions for staff until the meeting has been adjourned. The Council may consider other ordinances and matters not listed on the Agenda, unless specific notification period is required. Meeting materials are available on the City’s website at: www.cityofportorchard.us or by contacting the City Clerk’s office at (360) 876-4407. The City of Port Orchard does not discriminate on the basis of disability. Contact the City Clerk’s office should you need special accommodations. December 18, 2018, Meeting Agenda Page 2 of 2 8. REPORTS OF COUNCIL COMMITTEES 9. REPORT OF MAYOR 10. REPORT OF DEPARTMENT HEADS 11. CITIZEN COMMENTS (Please limit your comments to 3 minutes for any items not up for Public Hearing. When recognized by the Mayor, please state your name for the official record) 12. EXECUTIVE SESSION: Pursuant to RCW 42.30.110, the City Council may hold an executive session. The topic(s) and the session duration will be announced prior to the executive session. 13. ADJOURNMENT COMMITTEE MEETINGS Date & Time Location Finance TBD City Hall Economic Development and Tourism January 14, 2019; 9:30am City Hall Utilities December 17, 2018; 9:30am City Hall Sewer Advisory January 16, 2019; 6:30pm City Hall Land Use January 7, 2019; 9:30am DCD* Lodging Tax Advisory TBD City Hall Festival of Chimes & Lights December 17, 2018; 3:30 pm City Hall Holiday Tour December 17, 2018; 5:00 pm City Hall Outside Agency Committees Varies Varies *DCD, Department of Community Development, 720 Prospect Street, Port Orchard CITY COUNCIL GOOD OF THE ORDER City of Port Orchard 216 Prospect Street, Port Orchard, WA 98366 (360) 876-4407 • FAX (360) 895-9029 Agenda Staff Report Agenda Item No.: Consent Agenda 4A Meeting Date: December 18, 2018 Subject: Adoption of an Ordinance Amending Prepared by: Brandy Rinearson, MMC Port Orchard Municipal Code Chapter City Clerk 5.96 Temporary Vendors Atty Routing No.: N/A Atty Review Date: N/A Summary: In reviewing the new drafted language for a model business license ordinance required by the State, it provides that vendors participating in multi-vendor events can be exempted from the business license requirement if the City adopts an ordinance stating that exemption. On December 10, 2018, the Economic Development Committee met and recommended continuing with the current policy, which provides that if a vendor is participating in a multi-vendor event or tradeshow, they shall be exempt from having to obtain a Port Orchard City business license. Staff has prepared a draft ordinance amending Port Orchard Municipal Code 5.96 Temporary Vendors to reflect such change. Recommendation: Staff recommends adoption of an Ordinance, amending Port Orchard Municipal Code Chapter 5.96 Temporary Vendors as presented. Relationship to Comprehensive Plan: N/A Motion for consideration: I move to adopt an Ordinance, amending Chapter 5.96 Temporary Vendors of the Port Orchard Municipal Code as presented. Fiscal Impact: None. Alternatives: Do not adopt Ordinance and provide direction. Attachments: Redline of POMC 5.96 and Ordinance. Page 3 of 78 This Page Intentionally Left Blank Page 4 of 78 The Port Orchard Municipal Code is current through Ordinance 034-18, passed November 13, 2018. Chapter 5.96 TEMPORARY VENDORS Sections: 5.96.010 Definitions. 5.96.020 Vendor license. 5.96.030 Exemptions. 5.96.040 Vendor license – Requirements, duration, fees and renewal. 5.96.050 License – Revocation. 5.96.060 Insurance. 5.96.070 Violation – Penalty. 5.96.010 Definitions. (1) “Master multi-vendor event” means an event involving two (2)10 or more vendors engaged in public property vending in a common location under a common theme. Events that are scheduled for more than one day in a common location under a common theme are considered one event. (2) “Master multi-vendor event license” means a public property vending license issued to a master multi-vendor event license sponsor for a master multi-vendor event. (3) “Master multi-vendor event license sponsor” means the person, business or organization requesting a master multi-vendor event license. (4) “Non-profit organization” means an organization which has been granted nonprofit status by the Secretary of State of Washington orfor the Internal Revenue Service. (5) “Public property” means any sidewalk that immediately abuts a street, alley, or roadway where the general public has unrestricted access. (6) “Public property vending” means the act of selling merchandise, edible or not edible, from a vending device on public property for the purpose of gain, benefit or advantage, direct or indirect, to the vendor. (7) “Vending device” means a stand, booth, cart, basket, tray, table or other device from which the selling of merchandise, edible or not edible, occurs. (8) “Vending site” means the physical location where the vendor’s vending device will be located while engaged in public property vending. (9) “Vendor” means any person, business, or organization engaged in public property vending. (Ord. 017-09 § 1; Ord. 1868 § 1, 2002; Ord. 1567 § 1, 1992). 5.96.020 Vendor license. (1) No vendor shall engage in public property vending unless such vendor has complied with all applicable provisions of this chapter. (2) All vendors engaged in public property vending must display a valid public property vending license in a prominent and visible place on the vendor’s vending device. (3) (a) Sponsors of events classified as a master multi-vendor event shall obtain a master multi-vendoer event license. Individuals participating in the master multi-vendor event vendors shall be exempt from public property vendor license fees. The sponsor of the master multi-vendor event shall provide a list of participating vendors, their business names, their addresses and their State Tax Revenue Identification Numbers to the city clerk within three working days after the first day of the operation of the master multi-vendor event. The sponsor of an ongoing master multi-vendor event shall submit an updated vendor list as additional vendors participate in the event. The updated list shall be submitted within three working days of each day of operation in which the event has new participants. Page 5 of 78 The Port Orchard Municipal Code is current through Ordinance 034-18, passed November 13, 2018. No updated list is required if no new vendors participate. Nothing in this section shall be construed to exempt participants in a master multi-vendor event from any requirements of this chapter other than individual license fees unless specifically stated within this chapter. (b) Nonprofit status shall be granted to a master multi-vendor event permit application only upon proof that all participating vendors have obtained nonprofit status. (Ord. 1567 § 2, 1992). 5.96.030 Exemptions. This chapter shall not apply to: (1) Businesses possessing a valid business license conducting a sidewalk sale abutting their place of business; (2) Charitable or nonprofit organizations, provided that their vending activities are limited to: (a) Prepackaged food items or nonedible merchandise, and (b) Vending activities conducted not more than twice per calendar year and for a period not exceeding a cumulative total of 30 days; (3) Persons selling products exempted by RCW 36.71.090; farmers, gardeners or other persons selling or delivering fruits, vegetables, berries, eggs or any farm produce or edibles raised, gathered, produced or manufactured by such person; (4) Vendors of books, periodicals, newspapers or others exempted by state or federal law. (Ord. 1567 § 3, 1992). 5.96.040 Vendor license – Requirements, duration, fees and renewal. (1) The granting of a public property vending license is conditioned in part upon the submission and approval of the following to the office of the city clerk: (a) A public property vendor license application and appropriate fee as established by this section; (b) A copy of a current city business license or a copy of the business license application (vendors participating in a master multi-vendor event need not obtain a city business license); (c) A permit or other written document from the local county health department granting approval of the vending device which will be used by the vendor if food or beverage items will be sold; (d) A copy of a food handler’s permit, issued by the local county health department for each person who will be dispensing food or beverage products from the vending device; (e) A certificate of insurance as provided for in POMC 5.96.060. (2) The following requirements apply to all vendors engaged in public property vending and a public property vending license may be revoked for violation of any of these requirements: (a) Vending devices must be removed from vending sites daily between the hours of 10:00 p.m. and 6:00 a.m.; (b) Vending devices and vending sites must be clean and orderly at all times. The vendor must furnish a suitable refuse container and is responsible for the daily disposal of refuse deposited therein. Refuse containers must be removed each day along with vending devices; (c) Vendors may engage in public property vending only in the location specified in the public property license. The location shall be deemed the vending site; (d) Utility service connections are not permitted, except electrical when provided with written permission from the adjacent property owner. Electrical lines are not allowed overhead or lying in the pedestrian portion of the sidewalk; Page 6 of 78 The Port Orchard Municipal Code is current through Ordinance 034-18, passed November 13, 2018. (e) No mechanical audio or noisemaking devices are allowed and no hawking is allowed; (f) A vinyl or canvas umbrella may be added to the vending device, but its open diameter may not exceed eight and one-half feet. Any part of the umbrella must have a minimum of seven feet of vertical clearance to the area on which the vending device stands; (g) Individual vendor advertising signs may be placed only upon the vending device. Temporary master event advertising signs may be placed as approved by the city engineer; (h) No conduct shall be permitted which violates any other section of the Port Orchard Municipal Code; (i) Any vendor engaged in public property vending shall, upon demand being made by a police officer, produce a valid public property vending license for inspection; (j) The vending site must be compatible with the public interest in the use of the street, sidewalk or public place as a public right-of-way or public park. Vendors shall not block public access through the public right-of-way. There shall be a minimum of four feet clearance for pedestrian access at all times; (k) A vendor shall not engage in public property vending nor shall a vending site be granted for a location within 10 feet of intersecting sidewalks. (3)(a) The fee for a public property vendor license shall be either $15.00 per day for each vending device or $200.00 per month for each vending device payable at the time application for such license is made. No public property vendor license shall exceed 90 calendar days. A vendor may apply for a renewal of a current public property vendor license by submitting a renewal application and applicable fees to the city clerk prior to the expiration of the existing public property vendor license. A renewal application shall be treated as a new application. (b) The fee for a master multi-vendor event license shall be $15.00 per event day. (Ord. 017-09 § 2; Ord. 1868 § 2, 2002; Ord. 1567 § 4, 1992). 5.96.050 License – Revocation. (1) A public property vendor license and/or a master multi-vendor event license is wholly of a temporary nature and vests no permanent rights. It may be revoked at any time by the city clerk without notice, renewal denied, or application for license denied for any of the following reasons: (a) The use or occupation of the vending site location becomes dangerous or unsafe; (b) The local county health department withdraws approval or cancels the necessary permits; (c) The vendor, vendor representative, or master event sponsor violates any provision of the Port Orchard Municipal Code; (d) The public property vendor/master multi-vendor event license applicant knowingly misrepresents facts in the license application; (e) The vendor’s/master multi-vendor event sponsor’s insurance in the amounts required by POMC 5.96.060 is not current or in full force; (f) The master multi-vendor event sponsor fails to submit vendor participants list as required by POMC 5.96.020(3). (2) In the event that the city clerk determines that a license should be revoked in accordance with this section, the notice and appeal procedures set forth in POMC 5.12.120(2) through (6) shall apply. (Ord. 017-09 § 3; Ord. 1567 § 5, 1992). 5.96.060 Insurance. (1) Prior to issuance of the license, the licensee shall, at its own expense, obtain such liability insurance as will protect licensee, adjacent property owners and the city from any and all claims for damage to property or death or Page 7 of 78 The Port Orchard Municipal Code is current through Ordinance 034-18, passed November 13, 2018. injury to persons which may arise or result from operations or activities under the license, the issuance of the license, or otherwise provide coverage of not less than $500,000 per occurrence for property damage or injury to persons and shall name as additional insured the city of Port Orchard, its officers and employees and shall further provide that the policy shall not terminate or be canceled prior to the expiration of the license and any renewals thereof without at least 30 days’ written notice to the city clerk. Licensee shall provide a certificate of such insurance to the city clerk prior to the issuance of a license. (2) A master multi-vendor event license applicant shall provide insurance for the master multi-vendor event as required by this section. (Ord. 1567 § 6, 1992). 5.96.070 Violation – Penalty. Violation of any provision of this chapter shall constitute a Class 1 infraction and shall upon conviction be punished by a fine not to exceed $250.00. (Ord. 1567 § 7, 1992). Page 8 of 78 ORDINANCE NO. ___ AN ORDINANCE OF THE CITY OF PORT ORCHARD, WASHINGTON AMENDING SECTION 5.96 OF THE PORT ORCHARD MUNICIPAL CODE TEMPORARY VENDORS TO ADDRESS THE APPLICABILITY OF THAT SECTION TO MULTI-VENDOR EVENTS; PROVIDING FOR SEVERABILITY AND PUBLICATION; AND SETTING AN EFFECTIVE DATE. WHEREAS, the City Council adopted Ordinance No. 1567 on December 28, 1992 thereby, establishing regulations for the issuance of licenses to temporary vendors within the City of Port Orchard; and WHEREAS, pursuant to Engrossed House Bill (EHB) 2005, adopted by the State Legislature in 2017, a city business license workgroup was established and has drafted language for a model business license ordinance to be adopted by all cities, which includes both legislative requirements of defining the meaning of “engaging in business” and setting a minimum threshold; and WHEREAS, on September 11, 2018, the City council adopted Ordinance no. 028-18, meeting the requirement of EHB 2005, which will be effective on January 1, 2019; and WHEREAS, the City’s business license code, provides that vendors participating in multi- vendor events can be exempted from the business license requirement if the City adopts an ordinance stating that exemption; and WHEREAS, on December 10, 2018, the Economic Development Committee recommended continuing with the current policy, which provides that if a vendor is participating in a multi-vendor event or tradeshow, they shall be exempt from having to obtain a Port Orchard City business license, and now therefore; THE CITY COUNCIL OF THE CITY OF PORT ORCHARD, WASHINGTON, DO ORDAIN AS FOLLOWS: SECTION 1. Section 5.96.010 of the Port Orchard Municipal Code is hereby amended to read as follows: 5.96.010 Definition. (1) “Master multi-vendor event” means an event involving two (2) or more vendors engaged in public property vending in a common location under a common theme. Events that are scheduled for more than one day in a common location under a common theme are considered one event. (2) “Master multi-vendor event license” means a public property vending license issued to a master multi-vendor event sponsor for a master multi-vendor event. Page 9 of 78 Ordinance No. ___ Page 2 of 6 (3) “Master multi-vendor event sponsor” means the person, business or organization requesting a master multi-vendor event license. (4) “Non-profit organization” means an organization which has been granted nonprofit status by the Secretary of State of Washington or the Internal Revenue Service. (5) “Public property” means any sidewalk that immediately abuts a street, alley, or roadway where the general public has unrestricted access. (6) “Public property vending” means the act of selling merchandise, edible or not edible, from a vending device on public property for the purpose of gain, benefit or advantage, direct or indirect, to the vendor. (7) “Vending device” means a stand, booth, cart, basket, tray, table or other device from which the selling of merchandise, edible or not edible, occurs. (8) “Vending site” means the physical location where the vendor’s vending device will be located while engaged in public property vending. (9) “Vendor” means any person, business, or organization engaged in public property vending. SECTION 2. Section 5.96.020 of the Port Orchard Municipal Code is hereby amended to read as follows: 5.96.020 Vendor License. (1) No vendor shall engage in public property vending unless such vendor has complied with all applicable provisions of this chapter. (2) All vendors engaged in public property vending must display a valid public property vending license in a prominent and visible place on the vendor’s vending device. (3) (a) Sponsors of events classified as a multi-vendor event shall obtain a master multi- vendor event license. Individual master multi-vendor event vendors shall be exempt from public property vendor license fees. The sponsor of the master multi-vendor event shall provide a list of participating vendors, their business names, their addresses and their State Tax Revenue Identification Numbers to the city clerk within three working days after the first day of the operation of the master multi-vendor event. The sponsor of an ongoing master multi-vendor event shall submit an updated vendor list as additional vendors participate in the event. The updated list shall be submitted within three working days of each day of operation in which the event has new participants. No updated list is required if no new vendors participate. Nothing in this section shall be construed to exempt participants in a master multi-vendor event from any requirements of this chapter other than individual license fees unless specifically stated within this chapter. (b) Nonprofit status shall be granted to a master multi-vendor event permit application Page 10 of 78 Ordinance No. ___ Page 3 of 6 only upon proof that all participating vendors have obtained nonprofit status. SECTION 3. Section 5.96.030 of the Port Orchard Municipal Code is hereby amended to read as follows: 5.96.030 Vendor license – Requirements, duration, fees and renewal. (1) The granting of a public property vending license is conditioned in part upon the submission and approval of the following to the office of the city clerk: (a) A public property vendor license application and appropriate fee as established by this section; (b) A copy of a current city business license or a copy of the business license application (vendors participating in a master multi-vendor event need not obtain a city business license); (c) A permit or other written document from the local county health department granting approval of the vending device which will be used by the vendor if food or beverage items will be sold; (d) A copy of a food handler’s permit, issued by the local county health department for each person who will be dispensing food or beverage products from the vending device; (e) A certificate of insurance as provided for in POMC 5.96.060. (2) The following requirements apply to all vendors engaged in public property vending and a public property vending license may be revoked for violation of any of these requirements: (a) Vending devices must be removed from vending sites daily between the hours of 10:00 p.m. and 6:00 a.m.; (b) Vending devices and vending sites must be clean and orderly at all times. The vendor must furnish a suitable refuse container and is responsible for the daily disposal of refuse deposited therein. Refuse containers must be removed each day along with vending devices; (c) Vendors may engage in public property vending only in the location specified in the public property license. The location shall be deemed the vending site; (d) Utility service connections are not permitted, except electrical when provided with written permission from the adjacent property owner. Electrical lines are not allowed overhead or lying in the pedestrian portion of the sidewalk; (e) No mechanical audio or noisemaking devices are allowed and no hawking is allowed; (f) A vinyl or canvas umbrella may be added to the vending device, but its open Page 11 of 78 Ordinance No. ___ Page 4 of 6 diameter may not exceed eight and one-half feet. Any part of the umbrella must have a minimum of seven feet of vertical clearance to the area on which the vending device stands; (g) Individual vendor advertising signs may be placed only upon the vending device. Temporary master event advertising signs may be placed as approved by the city engineer; (h) No conduct shall be permitted which violates any other section of the Port Orchard Municipal Code; (i) Any vendor engaged in public property vending shall, upon demand being made by a police officer, produce a valid public property vending license for inspection; (j) The vending site must be compatible with the public interest in the use of the street, sidewalk or public place as a public right-of-way or public park. Vendors shall not block public access through the public right-of-way. There shall be a minimum of four feet clearance for pedestrian access at all times; (k) A vendor shall not engage in public property vending nor shall a vending site be granted for a location within 10 feet of intersecting sidewalks. (3)(a) The fee for a public property vendor license shall be either $15.00 per day for each vending device or $200.00 per month for each vending device payable at the time application for such license is made. No public property vendor license shall exceed 90 calendar days. A vendor may apply for a renewal of a current public property vendor license by submitting a renewal application and applicable fees to the city clerk prior to the expiration of the existing public property vendor license. A renewal application shall be treated as a new application. (b) The fee for a master multi-vendor event license shall be $15.00 per event day. SECTION 4. Section 5.96.050 of the Port Orchard Municipal Code is hereby amended to read as follows: 5.96.050 License – Revocation. (1) A public property vendor license and/or a master multi-vendor event license is wholly of a temporary nature and vests no permanent rights. It may be revoked at any time by the city clerk without notice, renewal denied, or application for license denied for any of the following reasons: (a) The use or occupation of the vending site location becomes dangerous or unsafe; (b) The local county health department withdraws approval or cancels the necessary permits; Page 12 of 78 Ordinance No. ___ Page 5 of 6 (c) The vendor, vendor representative, or master event sponsor violates any provision of the Port Orchard Municipal Code; (d) The public property vendor/master multi-vendor event license applicant knowingly misrepresents facts in the license application; (e) The vendor’s/master multi-vendor event sponsor’s insurance in the amounts required by POMC 5.96.060 is not current or in full force; (f) The master multi-vendor event sponsor fails to submit vendor participants list as required by POMC 5.96.020(3). (2) In the event that the city clerk determines that a license should be revoked in accordance with this section, the notice and appeal procedures set forth in POMC 5.12.120(2) through (6) shall apply. SECTION 5. Section 5.96.060 of the Port Orchard Municipal Code is hereby amended to read as follows: 5.96.060 Insurance. (1) Prior to issuance of the license, the licensee shall, at its own expense, obtain such liability insurance as will protect licensee, adjacent property owners and the city from any and all claims for damage to property or death or injury to persons which may arise or result from operations or activities under the license, the issuance of the license, or otherwise provide coverage of not less than $500,000 per occurrence for property damage or injury to persons and shall name as additional insured the city of Port Orchard, its officers and employees and shall further provide that the policy shall not terminate or be canceled prior to the expiration of the license and any renewals thereof without at least 30 days’ written notice to the city clerk. Licensee shall provide a certificate of such insurance to the city clerk prior to the issuance of a license. (2) A master multi-vendor event license applicant shall provide insurance for the master multi-vendor event as required by this section. SECTION 6. Severability. If any section, sentence, clause or phrase of this Ordinance should be held to be unconstitutional or unlawful by a court of competent jurisdiction, such invalidity or unconstitutionality shall not affect the validity or constitutionality of any other section, sentence, clause or phrase of this Ordinance. SECTION 7. Publication. This Ordinance shall be published by an approved summary consisting of the title. SECTION 8. Effective Date. This Ordinance shall take effect and be in full force and effect five days after publication, as provided by law. Page 13 of 78 Ordinance No. ___ Page 6 of 6 PASSED by the City Council of the City of Port Orchard, APPROVED by the Mayor and attested by the Clerk in authentication of such passage this 18th day of December 2018. Robert Putaansuu, Mayor ATTEST: Brandy Rinearson, City Clerk APPROVED AS TO FORM: Sponsored by: Sharon Cates, City Attorney Bek Ashby, Councilmember PUBLISHED: EFFECTIVE DATE: Page 14 of 78 City of Port Orchard 216 Prospect Street, Port Orchard, WA 98366 (360) 876-4407 • FAX (360) 895-9029 Agenda Staff Report Agenda Item No.: Consent Agenda 4B Meeting Date: December 18, 2018 Subject: Adoption of a Resolution Confirming Prepared by: Brandy Rinearson, MMC Appointments to the Kitsap Transit City Clerk Board Atty Routing No: N/A Atty Review Date: N/A Summary: Kitsap Transit Board by-laws state their 10-member Board is comprised of nine elected officials and a non-voting member, including an at-large member from among the elected officials of the three smaller cities, Bainbridge Island, Port Orchard, and Poulsbo. The Mayor or a member of the Council, chosen by the Council for Port Orchard, can serve on this Board. Mayor Putaansuu has served on the Kitsap Transit Board from 2011 through 2018. During the November 27, 2018, City Council meeting, Council discussed Mayor Putaansuu’s reappointment to the Kitsap Transit Board, and appointing Councilmember Rosapepe to serve as the at- large member. Recommendation: Staff recommends adoption of a Resolution, reappointing Mayor Putaansuu to the Kitsap Transit Board, and the appointment of Councilmember Rosapepe to serve as the at-large member. Relationship to Comprehensive Plan: NA Motion for consideration: I move to adopt a Resolution, reappointing Mayor Putaansuu to the Kitsap Transit Board, and the appointment of Councilmember Rosapepe to serve as the at-large member. Fiscal Impact: None. Alternatives: Do not adopt Resolution. Attachments: Resolution. Page 15 of 78 This Page Intentionally Left Blank Page 16 of 78 RESOLUTION NO. ____ A RESOLUTION OF THE CITY OF PORT ORCHARD, WASHINGTON, CONFIRMING APPOINTMENTS TO THE KITSAP TRANSIT BOARD. WHEREAS, Kitsap Transit Board by-laws state the Mayor or a member of the Council, chosen by the Council, can serve on the Board; and WHEREAS, Kitsap Transit Board by-laws also state an at-large member from among the elected officials of the three smaller cities, Bainbridge Island, Port Orchard and Poulsbo can serve on this Board; and WHEREAS, Mayor Putaansuu has served on the Board from 2011 to 2018; and WHEREAS, during the November 27, 2018, City Council meeting, Council discussed Mayor Putaansuu’ s reappointment to the Kitsap Transit Board and appointing Councilmember Rosapepe to serve as the at-large member; now, therefore, THE CITY COUNCIL OF THE CITY OF PORT ORCHARD, WASHINGTON, DOES HEREBY RESOLVE AS FOLLOWS: THAT: Mayor Putaansuu is reappointed to the Kitsap Transit Board. THAT: Councilmember Rosapepe is appointed to the Kitsap Transit Board as an at-large member. PASSED by the City Council of the City of Port Orchard, APPROVED by the Mayor and attested by the City Clerk in authentication of such passage this 18th day of December 2018. Robert Putaansuu, Mayor ATTEST: Brandy Rinearson, MMC, City Clerk Page 17 of 78 This Page Intentionally Left Blank Page 18 of 78 City of Port Orchard 216 Prospect Street, Port Orchard, WA 98366 (360) 876-4407 • FAX (360) 895-9029 Agenda Staff Report Agenda Item No.: Consent Agenda 4C Meeting Date: December 18, 2018 Subject: Adoption of a Resolution Confirming Prepared by: Brandy Rinearson, MMC Appointment to the Kitsap 911 Board City Clerk Of Directors Atty Routing No: N/A Atty Review Date: N/A Summary: Kitsap 911 Board of Directors is comprised of 14 members, including a Board member and alternate representing the City of Port Orchard which shall either be the Mayor, a Councilmember, or Chief of Police as appointed by the Port Orchard City Council. Mayor Putaansuu has served on the Kitsap 911 Board of Directors since 2016 and is also currently on the Executive Committee. During the December 11, 2018, City Council meeting, Council discussed Mayor Putaansuu’ s reappointment to the Kitsap 911 Board of Directors, and appointing Councilmember Clauson to serve as his alternate. Recommendation: Staff recommends adoption of a Resolution, reappointing Mayor Putaansuu to the Kitsap 911 Board of Directors, and the appointment of Councilmember Clauson to serve as his alternate. Relationship to Comprehensive Plan: NA Motion for consideration: I move to adopt a Resolution, reappointing Mayor Putaansuu to the Kitsap 911 Board of Directors, and the appointment of Councilmember Clauson to serve as his alternate. Fiscal Impact: None. Alternatives: Do not adopt Resolution. Attachments: Resolution. Page 19 of 78 This Page Intentionally Left Blank Page 20 of 78 RESOLUTION NO. ____ A RESOLUTION OF THE CITY OF PORT ORCHARD, WASHINGTON, CONFIRMING APPOINTMENTS TO THE KITSAP 911 BOARD. WHEREAS, The Kitsap 911 Board of Directors is comprised of 14 members, including a Board member and alternate representing the City of Port Orchard which shall either be the Mayor, a Councilmember, or Chief of Police as appointed by the Port Orchard City Council; and WHEREAS, Mayor Putaansuu has served on the Kitsap 911 Board of Directors from 2011 to 2018; and WHEREAS, during the December 11, 2018, City Council meeting, Council discussed Mayor Putaansuu’ s reappointment to the Kitsap 911 Board of Directors, and appointing Councilmember Clauson to serve as his alternate; now, therefore, THE CITY COUNCIL OF THE CITY OF PORT ORCHARD, WASHINGTON, DOES HEREBY RESOLVE AS FOLLOWS: THAT: Mayor Putaansuu is reappointed to the Kitsap 911 Board of Directors. THAT: Councilmember Clauson is appointed to the Kitsap 911 Board of Directors as his alternate. PASSED by the City Council of the City of Port Orchard, APPROVED by the Mayor and attested by the City Clerk in authentication of such passage this 18th day of December 2018. Robert Putaansuu, Mayor ATTEST: Brandy Rinearson, MMC, City Clerk Page 21 of 78 This Page Intentionally Left Blank Page 22 of 78 City of Port Orchard 216 Prospect Street, Port Orchard, WA 98366 (360) 876-4407 • FAX (360) 895-9029 Agenda Staff Report Agenda Item No.: Public Hearing 6A Meeting Date: December 18, 2018 Subject: Multifamily Property Tax Exemption Prepared by: Nick Bond Revisions Development Director Atty Routing No.: 044-16 Atty Review Date: November 15, 2018 Summary/Background: 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, and established the residential targeted areas designated for tax exemption. Chapter 3.48 applies the requirements of RCW 84.14 for designation and approval of residential targeted areas and approval of proposed development within those areas. Per RCW 84.14.040, a residential targeted area must be within an urban center, and must lack sufficient available, desirable and convenient residential housing, including affordable and housing. 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. This site is proposed for a 113-unit apartment development. During this report, the Council was made aware that the 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. However, the Council is also aware that development costs in the downtown area are likely to be higher than development/redevelopment in other areas of the city, due to the expenses of providing below-grade parking and building on shoreline fill. By continuing the 12-year exemption in the downtown, these higher costs for the developer could be offset, since downtown rents are likely to be higher than in other areas of the city. The downtown also offers close proximity to transit and local services, in accordance with the City’s comprehensive plan goals for its local centers. After discussion, the Council requested that a draft ordinance amending the City’s tax exemption map be brought forward for consideration at the November 20 work-study meeting, and staff presented two alternatives. The Council decided to proceed with the alternative that expands the tax exemption map to include the Sedgwick parcels (see new Figure 1 in attached ordinance) and also limits the 12-year tax exemption to the downtown area, along with corresponding changes to the text of Section 3.48.040. 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. Page 23 of 78 Public Hearing 6A Page 2 of 3 Policy LU-17 Incentivize infill development to preserve and protect open space, critical areas and natural resources. Policy LU-28 In conjunction with the proposed Centers strategy, enhance downtown Port Orchard’s role as the center of the South Kitsap region, reflecting the following principles in development standards and land use plans: • Encourage land uses that support transit centers and promote pedestrian activity. • Promote a mix of uses, including retail, office, and housing. • Encourage uses that will provide both daytime and evening activities. • Support civic, cultural, and entertainment activities. • Provide sufficient public open space and recreational opportunities. • Enhance, and provide access to, the waterfront. • Develop enhanced design guidelines and design review requirements that promote attractive, pedestrian-scale development and redevelopment within the City’s historic downtown area. Policy CN-1 Prioritize the City’s residential, commerical and light industrial growth and infrastructure investments within designated Centers, in accordance with VISION 2040 and the Countywide Planning Policies. Policy CN-2 Balance objectives for accommodating growth, encouraging compatibility, promoting housing affordability, and offering a wide range of housing types. Policy CN-10 The City should support employment growth, the increased use of non-automobile transportation options, and the preservation of the character of existing built-up areas by encouraging residential and mixed-use development at increased densities in designated Centers. Policy CN-11 The City shall ensure that higher density development in Centers is either within walking or biking distance of jobs, schools, and parks or is well-served by public transit. 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. Page 24 of 78 Public Hearing 6A Page 3 of 3 Recommendation: Staff recommends that the City Council hold a public hearing on the ordinance amending POMC Chapter 3.48. Fiscal Impact: The Sedgwick properties, which are undeveloped, are currently assessed by Kitsap County for approximately $11,573 in annual property tax. Based on information provided by the Sedgwick developer, the completed apartment development would be valued at approximately $27 million, and would be assessed approximately $280,000 in annual property tax. The City receives 16% of annual property tax revenue, which represents $1,633 for the undeveloped property, and $42,000 for the developed property. If the developer receives an 8-year tax abatement, the City will forgo approximately $322,936 in property tax revenue that it would otherwise have received during that period. However, after the abatement period, the City will receive on an ongoing basis approximately $40,367 more per year than if the Sedgwick properties had remained undeveloped. Alternatives: Do not hold the public hearing. Attachments: Ordinance; Existing and Proposed Tax Abatement Maps; Strikethrough-Underline Changes to POMC Chapter 3.48.040. Page 25 of 78 This Page Intentionally Left Blank Page 26 of 78 ORDINANCE NO. ____ 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 criteria for the multifamily property tax exemption as defined by Chapter 84.14.040 RCW, which include the requirements that a designated targeted area must be located within an urban center, and the area must lack sufficient available, desirable and convenient residential housing, including affordable housing; 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, which is likely to have higher costs for development and redevelopment due to the nature of building below-grade parking and building on shoreline fill; and Page 27 of 78 Ordinance No. ___ Page 2 of 14 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 WHEREAS, on December 18, 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; now, therefore, THE CITY COUNCIL OF THE CITY OF PORT ORCHARD, WASHINGTON, DO 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, APPROVED by the Mayor and attested by the Clerk in authentication of such passage this 18th day of December 2018. Robert Putaansuu, Mayor ATTEST: SPONSOR: Brandy Rinearson, MMC, City Clerk Bek Ashby, Councilmember Page 28 of 78 Ordinance No. ___ Page 3 of 14 APPROVED AS TO FORM: Sharon Cates, City Attorney PUBLISHED: EFFECTIVE DATE: Page 29 of 78 Ordinance No. ___ Page 4 of 14 EXHIBITS: Exhibit 1 – Amended Chapter 3.48 POMC EXHIBIT 1: 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 Page 30 of 78 Ordinance No. ___ Page 5 of 14 (3) Accomplish the planning goals required under the Growth Management Act, Chapter 36.70A RCW as implemented by the City’s comprehensive plan. 3.48.020 DEFINITIONS. When used in this chapter, the following terms shall have the following meanings, unless the context indicates otherwise: (1) "Affordable housing" means the definition provided for in RCW 84.14.010. (2) "Department" means the City Department of Community Development. (3) "Director" means the Director of the Department of Community Development, or designee. (4) "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; Page 31 of 78 Ordinance No. ___ Page 6 of 14 (b) The area lacks sufficient available, desirable, and convenient residential housing, including affordable housing, to meet the needs of the public who would be likely to live in the urban center if affordable, desirable, attractive, and livable residences were available; and (c) Providing additional housing opportunities, including affordable housing, in the area will assist in achieving one or more of the purposes of this chapter. (2) In designating a residential targeted area, the City Council may also consider other factors including, but not limited to: (a) Additional housing, including affordable housing units, in the residential targeted area will attract and maintain an increase in the number of permanent residents; (b) An increased permanent residential population in the residential targeted area will help to achieve the planning goals mandated by the Growth Management Act under Chapter 36.70A RCW, as implemented through the City’s current and future comprehensive plans; (c) Encouraging additional housing in the residential targeted area is consistent with public transportation plans; or (d) Additional housing may contribute to revitalization of a distressed neighborhood or area within the City. (3) At any time the City Council may, by resolution, and in its sole discretion, amend or rescind the designation of a residential targeted area pursuant to the same procedural requirements as set forth in this chapter for original designation. (4) The following areas are designated as residential targeted areas under this chapter: Page 32 of 78 Ordinance No. ___ Page 7 of 14 Figure 1 (5) If a part of any legal lot is within a designated residential targeted area then the entire lot shall be deemed to lie within such residential targeted area. Property located outside of, but adjacent to, the described areas is not designated as residential targeted areas. 3.48.040 TERMS OF THE TAX EXEMPTION. (1) Duration of Exemption. The value of new housing construction, conversion, and rehabilitation improvements qualifying under this chapter is exempt from ad valorem property taxation, as follows: (a) Within the areas shown as “8 Year Eligible Area” and “12 Year Eligible Area” in Figure 1 of this chapter, for eight (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, 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 Page 33 of 78 Ordinance No. ___ Page 8 of 14 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. (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. Page 34 of 78 Ordinance No. ___ Page 9 of 14 (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. (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. Page 35 of 78 Ordinance No. ___ Page 10 of 14 (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 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 Page 36 of 78 Ordinance No. ___ Page 11 of 14 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 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; Page 37 of 78 Ordinance No. ___ Page 12 of 14 (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. 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; Page 38 of 78 Ordinance No. ___ Page 13 of 14 (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. (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 Page 39 of 78 Ordinance No. ___ Page 14 of 14 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 40 of 78 HENRY HANSONMILE HILL LOVELL SIDNEYHARRISBAYBETHELKIDDBETHEL MADRONAHARRISONBET H E L HIGGINSPAYSENOKARCHERDECATURROOSEVELTREDFOX ADA JACKSONDECATURFERNSWEANY HOPI JOYCE FLAIZ JEFFERSONHOLMESGUY W E T Z E L SMITH LAPUSHMITCHELL CHIVEWILK I N S HARRISONDWIGHT TAMARA C KCLINE GINSENG SOUTH LAUREL KENDALL HEATHERHOLLY MELCHER HARRISONPINECONEDEKALB CASTLEWOODPORT ORCHARDRUBYORCHARDMAPLE PO R T SROUFE ROCKWELLMAY BASILSEATTLE HUNTINGTON SMALLEY ANNIES KITSAP ROBERTGEIGER FIR SWEANYFREDERICK GUYWETZEL SE Q U O I A KINSLEY CONIFER PARK SENECA GUTHRIE 4TH WHITTIERLUNDDWIGHT WESTSILKTASSEL GIVENS JONES TREMONT GARRISONHOR S T M A N WOLVES MORTON DIVISIONBAY MAHA N MORTON PARKSAGE HARRIET TAYLOR DEKALB DIVISION STOC K T O N TAYLOR SUTTONHARDINGW A T E R 3RD LOWRENSHORTORLANDO MILEHILLBECK DEKALB TAYLOR RETSILARNOLDVELAHARRISONRAINSHADOW CA R L P I C K E LHIGHWEST COLES AU S T I N REDWOOD STARLETSINCLAIRVIEW HAROLDGLENNPINE TREEAUSTINBUCKINGHAMHOWARDAUSTINHARRISONHULLVANCOUVERGRANT1STGARFIELDGILLETTEBILLMELCHERSEATTLELUND CAMELLIA HIDDENTERRACETAYLOR HIGGINSWESTDOWNING MEDALLION SHELTON DEKALB 2ND CASANDRASHERMANMYSTERYSWEANY KENDALLGRANT MCKINLEYDIAM O N D SMITH DIVISION DWIGHT ROSE ASHHARRISONKITSAP KELPMAPLEILLINOIS MELCHER KELOWNAWENDELLEDWARDSORLANDOTRACY RED SPRUCE PROSP E C T HOOVERTRE M O N T SAGEG R E E N D A L E CEDARCOMPASS ARDENWALDLINCOLNWILLIAMS GRAND FIRFLOWERPINE TREE RUSSELLGL E N M O R E PLISKO CANYONJUNIPER WESTSK MALLACCESS GREENBRIARROLANDA H L S T ROM WI L K I N S SPOKANELUNDBERGART MIKELSENFOREST PARKTACOMA PORTLANDWHITE CEDARGARRISONCARL PICKELGARRISONFLOWERSPRAGUE DEVONSHIREHILL FRE E D O M C A L I S T O G A RADEY EISENHOWERCOURAGENAVIGATION HERONRIDGE MARB E T H FRONTAGEPROSPECT O L N E YFARRAGUT HIG H E R G R O U N D JOSLINPOPLAR SPRAGUEPERRYSEIFORDLOWREN EVERGREENHOOVERPARKWOODMAPLECASECOS T E A M B O A T PIONEERTUFTSEligible Area 0 400 800 1,200 1,600200 Feet City of Port Orchard Department of Community Development 216 Prospect Street, Port Orchard, WA 98366 Phone: (360) 874-5533 Fax: (360) 876-4980 www.cityofportorchard.us This map was created from existing map sources, not from field surveys. While great care was taken in using the most current map sources available, no warranties of any sort, including accuracy, fitness, or merchantability accompany this product. The user of this map assumes responsibility for determining its suitability for its intended use. This map is not a substitute for field survey. City of Port Orchard Current Adopted Tax Exemption Map November 14, 2018Page 41 of 78 HENRY HANSONHORSTMANTRACY LOVELL MILE HILL SIDNEYHARRIET JACKSONBAYBETHELKIDDBETHEL HARRISONBET H E L HIGGINSPAYSENOKARCHERDECATURROOSEVELTADA DECATURFERNSWEANY RED SPRUCE HOPI JOYCE FLAIZ JEFFERSONMADRONAGUYWETZ E L SMITH LAPUSHMITCHELL CHIVEWILK I N S HARRISONDWIGHT TAMARA C KCLINEARNOLD GINSENG SOUTH LAUREL KENDALL HEATHERHARRISHOLLY MELCHER HARRISONPINECONEDEKALB PORT ORCHARDRUBYORCHARDMAPLE PO R T SROUFE ROCKWELLMAY BASILSEATTLE HUNTINGTON SMALLEY ANNIES KITSAP ROBERTGEIGER FIR SWEANYFREDERICK CATHIEGUYWETZEL SE Q U O I A KINSLEY SENECA GUTHRIE 4TH WHITTIERLUND DWIGHT WESTSILKTASSEL GIVENS JONES TREMONT GARRISONW O L V E S MORTON DIVISIONBAY MORTON PARKTAYLOR DEKALB DIVISION STOC K T O N TAYLOR SUTTONHARDINGW A T E R 3RD LOWRENSHORTORLANDO MILEHILLBECK DEKALB HIDDENTERRACETAYLOR RETSILVELAHARRISONRAINSHADOW CA R L P I C K E LHIGHWEST COLES AU S T I N REDWOOD STARLETSINCLAIRVIEW HAROLDGLENNPINE TREEAUSTINBUCKINGHAMHOWARDAUSTINHARRISONHULLVANCOUVERGRANT1STGARFIELDGILLETTEBILLMELCHERSEATTLECAMELLIA TAYLOR HIGGINSWESTDOWNING MEDALLION SHELTON DEKALB 2ND CASANDRASHERMANMYSTERYSWEANY KENDALLGRANT MCKINLEYDIAM O N D SMITH DIVISION DWIGHT ROSE ASHHARRISONKITSAP SAGEMAPLEMELCHER WENDELLCASTLEWOODEDWARDSORLANDO PROSP E C T HOOVERGREE N D A L E CEDARCOMPASS ARDENWALDLINCOLNGRAND FIRBOTHWELL FLOWERPINE TREE RUSSELLHERONRIDGEGL E N M O R E PLISKO CANYONJUNIPER WESTSK MALLACCESS GREENBRIAR WI L K I N S SPOKANELUNDBERGART MIKELSENFOREST PARKTACOMA PORTLANDWHITE CEDARPERRYGARRISONGARRISONFLOWERSPRAGUE DEVONSHIREHILL STEAMBOATFRE E D O M C A L I S TO G A RADEY EISENHOWERCOURAGENAVIGATION MARB E T H FRONTAGEPROSPECT O L N E YFARRAGUT HIG H E R G R O U N DCASECO JOSLINPOPLAR SPRAGUESEIFORDLOWREN EVERGREENHOOVERPARKWOODMAPLEPIONEERTUFTSCARL PICKELEligible Area 0 390 780 1,170 1,560195 Feet City of Port Orchard Department of Community Development 216 Prospect Street, Port Orchard, WA 98366 Phone: (360) 874-5533 Fax: (360) 876-4980 www.cityofportorchard.us This map was created from existing map sources, not from field surveys. While great care was taken in using the most current map sources available, no warranties of any sort, including accuracy, fitness, or merchantability accompany this product. The user of this map assumes responsibility for determining its suitability for its intended use. This map is not a substitute for field survey. City of Port Orchard Proposed Tax Exemption Area - Bethel/Mile Hill November 14, 2018Page 42 of 78 SIDNEYANNIE S ADA SWEANY GUY W E T Z E L HARRISONTAYLOR MITCHELLDWIGHT CLINEHARRISONDEKALB PORT ORCHARDORCHARDPO R T AUSTINROCKWELLSEATTLEBAYKITSAP ROBERTGEIGER SWEANYFREDERICK GUY WETZEL TRACYDWIGHT GIVENS WOLVES MORTON DIVISION BAY MORTON TAYLOR SUTTONDIVISION W A T E R DEKALB DEKALB TAYLORHIGH COLES AUSTINAUSTINHARRISONHULLSEATTLEWESTDEKALB SWEANY DIVISION DWIGHTHARRISONKITSAP PROSP E C T PROSPECT FARRAGUTPERRYMAPLEBETHELElgible Area 0 175 350 525 70087.5 Feet City of Port Orchard Department of Community Development 216 Prospect Street, Port Orchard, WA 98366 Phone: (360) 874-5533 Fax: (360) 876-4980 www.cityofportorchard.us This map was created from existing map sources, not from field surveys. While great care was taken in using the most current map sources available, no warranties of any sort, including accuracy, fitness, or merchantability accompany this product. The user of this map assumes responsibility for determining its suitability for its intended use. This map is not a substitute for field survey. City of Port Orchard Proposed Tax Exemption Map - Downtown November 14, 2018Page 43 of 78 CALAVERAS TRAVERA SEDGWICK LALINDAPANCHOVILLAMACCUBBINANDASIOCONVERSE ABDULAKODA DUTCHESSCONVERSE CONVERSE VILLA C A R M E L HASTI N G S VALE CONVERSE PERDEMCO EASTWOODSCHERMERHORNHARRISHASTINGS DANA VALE BETHELLAURAWATERBEECHCREST DRAGONCOPPER CREEKCONVERSEFAY COLUSA S T A T E H W Y 1 6 PIONEERCARRRAMSEYBONNIEVILLEANDASIO BRASCHWESTWOODCELEBRITY OKANOGAN FERATEBELFORD LAGUNA CONCEPT PIPERBERRY S T A T E H W Y 1 6 BRAMEBLUEBERRY GRIFFITHSCONVERSEBAKKENGRANDRIDGEGRANADA RICHMOND KODA SYLVIS CARLSONESTONIAKERRYSHERLYNIVES MILLGEIGER MARTELL MOBILE Eligible Area 0 230 460 690 920115 Feet City of Port Orchard Department of Community Development 216 Prospect Street, Port Orchard, WA 98366 Phone: (360) 874-5533 Fax: (360) 876-4980 www.cityofportorchard.us This map was created from existing map sources, not from field surveys. While great care was taken in using the most current map sources available, no warranties of any sort, including accuracy, fitness, or merchantability accompany this product. The user of this map assumes responsibility for determining its suitability for its intended use. This map is not a substitute for field survey. City of Port Orchard Proposed Tax Exemption Area - Sedgwick November 14, 2018Page 44 of 78 Page 45 of 78 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 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 46 of 78 (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. Page 47 of 78 This Page Intentionally Left Blank Page 48 of 78 City of Port Orchard 216 Prospect Street, Port Orchard, WA 98366 (360) 876-4407 • FAX (360) 895-9029 Agenda Staff Report Agenda Item No.: Business Item 7A Meeting Date: December 18, 2018 Subject: Adoption of an Ordinance Adopting Prepared by: Nicholas Bond, AICP Revisions to Port Orchard Municipal DCD Director Code Chapter 3.48 Multifamily Property Atty Routing No.: 044-16 Tax Exemption Atty Review Date: November 15, 2018 Issue/Background: 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, and established the residential targeted areas designated for tax exemption. Chapter 3.48 applies the requirements of RCW 84.14 for designation and approval of residential targeted areas and approval of proposed development within those areas. Per RCW 84.14.040, a residential targeted area must be within an urban center, and must lack sufficient available, desirable and convenient residential housing, including affordable and housing. 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. This site is proposed for a 113-unit apartment development. During this report, the Council was made aware that the 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. However, the Council is also aware that development costs in the downtown area are likely to be higher than development/redevelopment in other areas of the city, due to the expenses of providing below-grade parking and building on shoreline fill. By continuing the 12-year exemption in the downtown, these higher costs for the developer could be offset, since downtown rents are likely to be higher than in other areas of the city. The downtown also offers close proximity to transit and local services, in accordance with the City’s comprehensive plan goals for its local centers. After discussion, the Council requested that a draft ordinance amending the City’s tax exemption map be brought forward for consideration at the November 20 work-study meeting, and staff presented two alternatives. The Council decided to proceed with the alternative that expands the tax exemption map to include the Sedgwick parcels (see new Figure 1 in the Ordinance provided with the Public Hearing Staff Report) and also limits the 12-year tax exemption to the downtown area, along with corresponding changes to the text of Section 3.48.040. 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. Page 49 of 78 Business Item 7A Page 2 of 3 Policy LU-17 Incentivize infill development to preserve and protect open space, critical areas and natural resources. Policy LU-28 In conjunction with the proposed Centers strategy, enhance downtown Port Orchard’s role as the center of the South Kitsap region, reflecting the following principles in development standards and land use plans: • Encourage land uses that support transit centers and promote pedestrian activity. • Promote a mix of uses, including retail, office, and housing. • Encourage uses that will provide both daytime and evening activities. • Support civic, cultural, and entertainment activities. • Provide sufficient public open space and recreational opportunities. • Enhance, and provide access to, the waterfront. • Develop enhanced design guidelines and design review requirements that promote attractive, pedestrian-scale development and redevelopment within the City’s historic downtown area. Policy CN-1 Prioritize the City’s residential, commerical and light industrial growth and infrastructure investments within designated Centers, in accordance with VISION 2040 and the Countywide Planning Policies. Policy CN-2 Balance objectives for accommodating growth, encouraging compatibility, promoting housing affordability, and offering a wide range of housing types. Policy CN-10 The City should support employment growth, the increased use of non-automobile transportation options, and the preservation of the character of existing built-up areas by encouraging residential and mixed-use development at increased densities in designated Centers. Policy CN-11 The City shall ensure that higher density development in Centers is either within walking or biking distance of jobs, schools, and parks or is well-served by public transit. 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. Page 50 of 78 Business Item 7A Page 3 of 3 Recommendation: Staff recommends that the City Council adopt an ordinance adopting the revisions to Chapter 3.48 of the Port Orchard Municipal Code as presented. Motion for Consideration: “I move to approve an ordinance adopting revisions to Chapter 3.48 of the Port Orchard Municipal Code as presented.” Fiscal Impact: The Sedgwick properties, which are undeveloped, are currently assessed by Kitsap County for approximately $11,573 in annual property tax. Based on information provided by the Sedgwick developer, the completed apartment development would be valued at approximately $27 million, and would be assessed approximately $280,000 in annual property tax. The City receives 16% of annual property tax revenue, which represents $1,633 for the undeveloped property, and $42,000 for the developed property. If the developer receives an 8-year tax abatement, the City will forgo approximately $322,936 in property tax revenue that it would otherwise have received during that period. However, after the abatement period, the City will receive on an ongoing basis approximately $40,367 more per year than if the Sedgwick properties had remained undeveloped. Alternatives: Do not approve ordinance; direct staff to make changes to ordinance. Attachments: Documents provided with Public Hearing staff report. Page 51 of 78 This Page Intentionally Left Blank Page 52 of 78 City of Port Orchard 216 Prospect Street, Port Orchard, WA 98366 (360) 876-4407 • FAX (360) 895-9029 Agenda Staff Report Agenda Item No.: Business Item 7B Meeting Date: December 18, 2018 Subject: Adoption of an Ordinance Amending Prepared by: Noah Crocker the 2017-2018 Biennial Budget Finance Director Atty Routing No: NA Atty Review Date: NA Ordinance No. 0xx-17, amending Ordinance No. 040-16 adopting the 2017 – 2018 Biennial Budgets subsequently amended by Ordinance No. 010-17, Ordinance No. 013-17, Ordinance No. 025-17, Ordinance No. 030-17, Ordinance No. 045-17, Ordinance No. 013-18 and Ordinance No. 032-18;. The public may comment on the amendment following its presentation. Summary: The City Budget is written to capture revenue and expenses over the fiscal period. During the biennial period, changes to the budget in both revenue and expenditures need to be recognized by Budget Amendment. Throughout the year, City Council has taken action on projects and contracts. This will be the final budget amendment for 2017-2018 biennium to capture council action and any additional expenditure authority required to close out the 2017-2018 biennium. The Tremont Widening Project has several budgetary impacts including the need for an interfund loan from the Current Expense Fund 001 to cover cash flow. The Tremont Widening Project has significant reimbursable grant funding, which means there is a delay in the timing of payments made to the contractor and the city receiving its grant proceeds. The Current Expense Interfund loan will provide the City with the flexibility it needs to pay the contracts in a timely manner while seeking its reimbursement of grant proceeds. Recommendation: The Finance Director recommends adoption of an Ordinance amending the 2017 – 2018 Biennial Budgets as presented. Motion for consideration: “I move to adopt Ordinance No. 0XX-18, amending the 2017 – 2018 Biennial Budgets for the City of Port Orchard as presented.” Fiscal Impact: The 2017-2018 Biennial Budget is impacted as follows: Page 53 of 78 Fund 001: Current Expense 2017-2018 Biennial Current Budget 2017-2018 Biennial Amended Budget Beginning Fund Balance 2,416,050$ 2,416,050$ Revenues 19,392,224$ 19,457,611$ Expenses 20,679,714$ 21,417,445$ Ending Fund Balance 1,128,560$ 456,216$ Fund 111: Impact Fees 2017-2018 Biennial Current Budget 2017-2018 Biennial Amended Budget Beginning Fund Balance 1,118,000$ 1,100,740$ Revenues 493,000$ 545,000$ Expenses 506,700$ 670,832$ Ending Fund Balance 1,104,300$ 974,908$ Fund 302: Capital Construction 2017-2018 Biennial Current Budget 2017-2018 Biennial Amended Budget Beginning Fund Balance 275,000$ 275,000$ Revenues 1,678,031$ 1,930,365$ Expenses 1,635,031$ 1,887,365$ Ending Fund Balance 318,000$ 318,000$ Fund 304: Street Capital Construction 2017-2018 Biennial Current Budget 2017-2018 Biennial Amended Budget Beginning Fund Balance 700,000$ 700,000$ Revenues 19,028,808$ 19,708,200$ Expenses 18,165,985$ 18,345,377$ Ending Fund Balance 1,562,823$ 2,062,823$ Fund 401: Water-Sewer 2017-2018 Biennial Current Budget 2017-2018 Biennial Amended Budget Beginning Fund Balance 2,200,000$ 2,200,000$ Revenues 23,812,700$ 23,812,780$ Expenses 24,373,380$ 24,777,380$ Ending Fund Balance 1,639,320$ 1,235,400$ Fund 421: Storm Drainage 2017-2018 Biennial Current Budget 2017-2018 Biennial Amended Budget Beginning Fund Balance 800,000$ 800,000$ Revenues 5,391,047$ 5,391,047$ Expenses 5,116,225$ 5,620,225$ Ending Fund Balance 1,074,822$ 570,822$ Page 54 of 78 Fund 500: Equipment Rental & Revolving Fund 2017-2018 Biennial Current Budget 2017-2018 Biennial Amended Budget Beginning Fund Balance -$ -$ Revenues 1,013,364$ 1,078,751$ Expenses -$ -$ Ending Fund Balance 1,013,364$ 1,078,751$ Fund 621: Water-Sewer-- Close out 2017-2018 Biennial Current Budget 2017-2018 Biennial Amended Budget Beginning Fund Balance -$ 80$ Revenues 5,250$ 5,250$ Expenses 5,250$ 5,330$ Ending Fund Balance -$ -$ Alternatives: This Ordinance recognizes changes to the Budget not known at the time of adoption of the 2017 – 2018 Biennial Budget. Failure to formalize these changes by Ordinance results in a budget not reflective of authorized revenue and expense. The City would be out of compliance with accepted budgeting procedures and subject to an audit finding. Attachments: Ordinance. Page 55 of 78 This Page Intentionally Left Blank Page 56 of 78 ORDINANCE NO. ____ AN ORDINANCE OF THE CITY OF PORT ORCHARD, WASHINGTON, AMENDING THE BIENNIAL BUDGET FOR THE YEARS 2017 – 2018 AS ADOPTED BY ORDINANCE NO. 040-16 TO RECOGNIZE EXPENDITURES AND REVENUES NOT ANTICIPATED AT THE TIME OF THE ADOPTION OF THE 2017 – 2018 BIENNIAL BUDGET; PROVIDING FOR PUBLICATION; AND SETTING AN EFFECTIVE DATE. WHEREAS, the City of Port Orchard adopted its 2017 – 2018 Biennial Budget in Ordinance No. 040-16 and subsequently amended by Ordinance No. 010-17, Ordinance No. 013-17, Ordinance No. 025-17, Ordinance No. 030-17 and Ordinance No. 045-17 and Ordinance No. 013-18 and Ordinance No. 032-18; and WHEREAS, the City desires to keep current on budget amendments; and WHEREAS, it is necessary to make adjustments to accounts and/or Funds by means of appropriation adjustments that could not have been anticipated at the time of passage of the 2017 – 2018 Biennial Budget, as provided in RCW 35A.33.120; and WHEREAS, The Parks Impact fees received revenues in excess of their original budgeted amount and the budget for these revenues will be adjusted; and WHEREAS, The McCormick Park Impact Fee budgeted beginning fund balance was $57,000 and the actual beginning fund balance was $39,740. The budgeted beginning fund balance will be adjusted with this amendment to reflect actuals; and WHEREAS, the McCormick Woods Park Project, which is included in the City’s Capital Parks plan and is considered a capital purpose, and deemed necessary and advisable by the City, and is an eligible project for the Current Expense Fund Recreation Reserve and eligible for Parks Impact fees; and WHEREAS, the McCormick Woods Park Project has construction expenses in excess of its original budget and Fund 302 capital construction will be adjusted; and WHEREAS, to fully fund the McCormick Woods Park Project the City will utilize Fund 001-Recreation Reserve in the amount of $124,594 and increase the budget for Parks Impact fees from $288,700 to $368,700, these funds will be transferred to the Capital Construction Fund; and WHEREAS, the City received additional funding from Washington State Department of Transportation in the amount of $39,900 than was originally in 2017-2018 budget, the revenue Page 57 of 78 Ordinance No. ___ Page 2 of 5 category for the Bay Street Pedestrian Path Segment #3 grant funding in the Street Capital Project Fund No. 304 will be adjusted to reflect the increase; and WHEREAS, the Bay Street Pedestrian Path Segment #3, which adds another connection to the Bay Street Pedestrian path project, and is considered a capital purpose and deemed necessary and advisable by the City, and is an eligible project for the Current Expense Fund Recreation Reserve and eligible for Transportation Impact Fees; and WHEREAS, the Bay Street Pedestrian Path Segment #3, has construction expenses in excess of its original budget and Fund 304 will be adjusted; and WHEREAS, to fully fund the Bay Street Pedestrian Path Segment #3, the city will utilize fund 001-Recreation Reserve in the amount of $38,100 and Transportation Impact fees in the amount of $47,000, these funds will be transferred to the Street Capital Construction Fund; and WHEREAS, the Old Clifton/Anderson Hill Intersection Design Project, which is in the City’s Transportation Plan and is an eligible project for Transportation Impact Fees; and WHEREAS, the Old Clifton/Anderson Hill Intersection Design Project has expenses in excess of its original budget, fund 304 will be adjusted; and WHEREAS, to fully fund the Old Clifton/Anderson Hill Intersection Design Project the city will utilize Fund 111 Transportation Impact Fees in the amount of $54,392, these funds will be transferred to the Street Capital Construction fund; and WHEREAS, the Tremont Widening Construction Project, which is in the City’s Transportation Plan has expenses in excess of the original budgeted amount for Storm Drainage construction, additional funding required will come from the Storm Drainage Utility Fund; and WHEREAS, the Sewer Improvements portion of the Tremont Widening project has expenses in excess of the original budget amount for Sewer Main Improvements, the additional funding required will come from the Water Sewer Utility Fund; and WHEREAS, the Tremont Widening Construction Project has significant grant funding which is a reimbursable, and as such, the work must first be accomplished and paid by the city prior to applying for release of grant proceeds, WHEREAS, to manage the cash flow for the project, the city will provide and an interfund loan from Current Expense Fund 001 for up to $500,000 to Street Capital Construction Fund No. 304, provided the entire loan amount is repaid with interest at the LGIP rate for the comparable period, and Page 58 of 78 Ordinance No. ___ Page 3 of 5 WHEREAS, the City has completed its repayment for the bond debt in the 1984 Refunding Fund No. 621, the Fund is to be closed and the remaining balance will be transferred to the Water Sewer Utility Fund No. 401; and WHEREAS, the design of the Marina Pump Station project was approved by Council in 2018 and where there have been expenses toward this project in 2018 that were not considered in the 2017-2018 Budget process, the water sewer Utility Fund No. 401 expenditures will be adjusted to capture this expense; and WHEREAS, the City had expenses for HVAC repairs and blinds for the City Hall facility, the Current Expense City Hall Reserve account will fund these additional expenses; and WHEREAS, the city was awarded a grant from the Department of Commerce for partial funding of the design and construction of the Rockwell Park project, which was approved by Council in 2018, and where there have been expenses toward this project in 2018, revenue from the grant and expense categories will be adjusted; and WHEREAS, an insurance reimbursement for police vehicles was originally deposited into the Current Expense Fund No. 001 and the new ER&R Fund No 500 is now operational, the Current Expense Fund will transfer the revenue to the ER&R Fund; now, therefore, THE CITY COUNCIL OF THE CITY OF PORT ORCHARD, WASHINGTON, DO ORDAIN AS FOLLOWS: SECTION 1. The 2017 – 2018 Biennial Budget is amended to reflect the following: Fund 001: Current Expense 2017-2018 Biennial Current Budget 2017-2018 Biennial Amended Budget Beginning Fund Balance 2,416,050$ 2,416,050$ Revenues 19,392,224$ 19,457,611$ Expenses 20,679,714$ 21,417,445$ Ending Fund Balance 1,128,560$ 456,216$ Fund 111: Impact Fees 2017-2018 Biennial Current Budget 2017-2018 Biennial Amended Budget Beginning Fund Balance 1,118,000$ 1,100,740$ Revenues 493,000$ 545,000$ Expenses 506,700$ 670,832$ Ending Fund Balance 1,104,300$ 974,908$ Page 59 of 78 Ordinance No. ___ Page 4 of 5 Fund 302: Capital Construction 2017-2018 Biennial Current Budget 2017-2018 Biennial Amended Budget Beginning Fund Balance 275,000$ 275,000$ Revenues 1,678,031$ 1,930,365$ Expenses 1,635,031$ 1,887,365$ Ending Fund Balance 318,000$ 318,000$ Fund 304: Street Capital Construction 2017-2018 Biennial Current Budget 2017-2018 Biennial Amended Budget Beginning Fund Balance 700,000$ 700,000$ Revenues 19,028,808$ 19,708,200$ Expenses 18,165,985$ 18,345,377$ Ending Fund Balance 1,562,823$ 2,062,823$ Fund 401: Water-Sewer 2017-2018 Biennial Current Budget 2017-2018 Biennial Amended Budget Beginning Fund Balance 2,200,000$ 2,200,000$ Revenues 23,812,700$ 23,812,780$ Expenses 24,373,380$ 24,777,380$ Ending Fund Balance 1,639,320$ 1,235,400$ Fund 421: Storm Drainage 2017-2018 Biennial Current Budget 2017-2018 Biennial Amended Budget Beginning Fund Balance 800,000$ 800,000$ Revenues 5,391,047$ 5,391,047$ Expenses 5,116,225$ 5,620,225$ Ending Fund Balance 1,074,822$ 570,822$ Fund 500: Equipment Rental & Revolving Fund 2017-2018 Biennial Current Budget 2017-2018 Biennial Amended Budget Beginning Fund Balance -$ -$ Revenues 1,013,364$ 1,078,751$ Expenses -$ -$ Ending Fund Balance 1,013,364$ 1,078,751$ Fund 621: Water-Sewer-- Close out 2017-2018 Biennial Current Budget 2017-2018 Biennial Amended Budget Beginning Fund Balance -$ 80$ Revenues 5,250$ 5,250$ Expenses 5,250$ 5,330$ Ending Fund Balance -$ -$ Page 60 of 78 Ordinance No. ___ Page 5 of 5 SECTION 2. The Finance Director is hereby authorized to make an interfund loan up to $500,000 from Current Expense Fund No. 001 to Street Capital Construction Fund No. 304, for the purpose of providing expenditures, as necessary, pending receipt of grant proceeds, provided the entire loan amount is repaid with interest at the LGIP rate for the comparable period of time of the borrowing within 12 months once drawn upon. SECTION 3. This ordinance shall be in full force and effect five (5) days after posting and publication as required by law. A summary of this Ordinance may be published in lieu of the entire ordinance, as authorized by State Law. PASSED by the City Council of the City of Port Orchard, APPROVED by the Mayor and attested by the Clerk in authentication of such passage this December 18, 2018. Rob Putaansuu, Mayor ATTEST: Brandy Rinearson, MMC, City Clerk APPROVED AS TO FORM: Sponsor: Sharon Cates, City Attorney John Clauson, Councilmember PUBLICATION: EFFECTIVE DATE: Page 61 of 78 This Page Intentionally Left Blank Page 62 of 78 City of Port Orchard 216 Prospect Street, Port Orchard, WA 98366 (360) 876-4407 • FAX (360) 895-9029 Agenda Staff Report Agenda Item No.: Business Item 7C Meeting Date: December 18, 2018 Subject: Adoption of an Ordinance Ratifying the Prepared by: Noah Crocker Collective Bargaining Agreement with Finance Director Teamsters Local No. 589 Representing the Atty Routing No.: NA Municipal Court Employees Atty Review Date: NA Summary: The City’s negotiating team consisting of City Attorney Sharon Cates, Mayor Robert Putaansuu, City Finance Director Noah Crocker, Court Administrator Sharon Ells, and HR Coordinator Deborah Howard has reached a tentative agreement with Teamsters Local No. 589 representing the City’s Municipal Court Employees. The Agreement has been ratified by the Municipal Court Employees’ bargaining unit. The Agreement is not a public document until approved by the Council and signed by the parties, and is therefore not attached to this staff report. Recommendation: The City’s negotiating team recommends that the City Council ratify the Collective Bargaining Agreement and authorize the Mayor to execute the Agreement. Relationship to Comprehensive Plan: N/A Motion for consideration: I move to adopt an Ordinance ratifying the terms of the Collective Bargaining Agreement with the Teamsters Local 589 representing the Municipal Court Employees’ bargaining unit and authorize the Mayor to execute the same. Fiscal Impact: The fiscal impact is consistent with the 2019-2020 biennial budget. Alternatives: Decline to ratify the Agreement. Attachments: Ordinance. Page 63 of 78 This Page Intentionally Left Blank Page 64 of 78 ORDINANCE NO. ____ AN ORDINANCE OF THE CITY OF PORT ORCHARD, WASHINGTON, RATIFYING A COLLECTIVE BARGAINING AGREEMENT WITH THE TEAMSTERS LOCAL NO. 589, REPRESENTING THE MUNICIPAL COURT EMPLOYEES; PROVIDING FOR SEVERABILITY AND PUBLICATION; AND SETTING AN EFFECTIVE DATE. WHEREAS, the City’s Municipal Court Employees are represented by Teamsters Local No. 589 (the “Teamsters”); and WHEREAS, the current Collective Bargaining Agreement with the Teamsters expires on December 31, 2018; and WHEREAS, the City’s negotiating team has reached a tentative Agreement with the Teamsters for a new three (3) year contract and the City’s negotiating team has recommended that the Council ratify the tentative Agreement; and WHEREAS, the Municipal Court Employees have ratified the Agreement; and, WHEREAS, the Council has reviewed the proposed Collective Bargaining Agreement and finds it is in the best interests of the City and its employees to ratify the Agreement; now, therefore; THE CITY COUNCIL OF THE CITY OF PORT ORCHARD, WASHINGTON, DO ORDAIN AS FOLLOWS: SECTION 1. The City Council hereby ratifies the tentative Collective Bargaining Agreement reached between the negotiating teams for the Teamsters representing the Municipal Court Employees and the City as attached hereto as Exhibit A, and the Mayor is hereby authorized to execute the same. SECTION 2. Severability. If any section, sentence, clause or phrase of this Ordinance should be held to be unconstitutional or unlawful by a court of competent jurisdiction, such invalidity or unconstitutionality shall not affect the validity or constitutionality of any other section, sentence, clause or phrase of this Ordinance. SECTION 3. Publication. This Ordinance shall be published by an approved summary consisting of the title. SECTION 4. Effective Date. This Ordinance shall take effect and be in full force and effect five days after publication, as provided by law. Page 65 of 78 Ordinance No. _________ Page 2 of 2 PASSED by the City Council of the City of Port Orchard, APPROVED by the Mayor and attested by the Clerk in authentication of such passage this 18th day of December 2018. Robert Putaansuu, Mayor ATTEST: SPONSOR: Brandy Rinearson, MMC, City Clerk John Clauson, Councilmember APPROVED AS TO FORM: Sharon Cates, City Attorney PUBLISHED: EFFECTIVE DATE: Page 66 of 78 City of Port Orchard 216 Prospect Street, Port Orchard, WA 98366 (360) 876-4407 • FAX (360) 895-9029 Agenda Staff Report Agenda Item No.: Business Item 7D Meeting Date: December 18, 2018 Subject: Adoption of an Ordinance Ratifying the Prepared by: Noah Crocker Collective Bargaining Agreement with Finance Director Teamsters Local No. 589 Representing the Atty Routing No.: NA Police Support Staff Employees Atty Review Date: NA Summary: The City’s negotiating team consisting of City Attorney Sharon Cates, Mayor Robert Putaansuu, City Finance Director Noah Crocker, Police Chief Geoff Marti, and HR Coordinator Deborah Howard has reached a tentative agreement with Teamsters Local No. 589 representing the City’s Police Support Staff Employees. The Agreement has been ratified by the Police Support Staff Employees’ bargaining unit. The Agreement is not a public document until approved by the Council and signed by the parties and is therefore not attached to this staff report. Recommendation: The City’s negotiating team recommends that the City Council ratify the Collective Bargaining Agreement and authorize the Mayor to execute the Agreement. Relationship to Comprehensive Plan: N/A Motion for consideration: I move to adopt an Ordinance ratifying the terms of the Collective Bargaining Agreement with the Teamsters Local 589 representing the Police Support Staff Employees’ bargaining unit, and authorize the Mayor to execute the same. Fiscal Impact: The fiscal impact is consistent with the 2019-2020 biennial budget. Alternatives: Decline to ratify the Agreement. Attachments: Ordinance. Page 67 of 78 This Page Intentionally Left Blank Page 68 of 78 ORDINANCE NO. ________ AN ORDINANCE OF THE CITY OF PORT ORCHARD, WASHINGTON, RATIFYING A COLLECTIVE BARGAINING AGREEMENT WITH THE TEAMSTERS LOCAL NO. 589 REPRESENTING THE POLICE SUPPORT STAFF EMPLOYEES; PROVIDING FOR SEVERABILITY AND PUBLICATION; AND SETTING AN EFFECTIVE DATE. WHEREAS, the City’s Police Support Staff Employees are represented by Teamsters Local No. 589 (the “Teamsters”); and WHEREAS, the current Collective Bargaining Agreement with the Teamsters expires on December 31, 2018; and WHEREAS, the City’s negotiating team has reached a tentative Agreement with the Teamsters for a new three (3) year contract and the City’s negotiating team has recommended that the Council ratify the tentative Agreement; and WHEREAS, the Police Support Staff Employees have ratified the Agreement; and WHEREAS, the Council has reviewed the proposed Collective Bargaining Agreement and finds it is in the best interests of the City and its employees to ratify the Agreement; now, therefore; THE CITY COUNCIL OF THE CITY OF PORT ORCHARD, WASHINGTON, DO ORDAIN AS FOLLOWS: SECTION 1. The City Council herby ratifies the tentative Collective Bargaining Agreement reached between the negotiating teams for the Teamsters representing the Police Support Staff Employees and the City as attached hereto as Exhibit A, and the Mayor is hereby authorized to execute the same. SECTION 2. Severability. If any section, sentence, clause or phrase of this Ordinance should be held to be unconstitutional or unlawful by a court of competent jurisdiction, such invalidity or unconstitutionality shall not affect the validity or constitutionality of any other section, sentence, clause or phrase of this Ordinance. SECTION 3. Publication. This Ordinance shall be published by an approved summary consisting of the title. SECTION 4. Effective Date. This Ordinance shall take effect and be in full force and effect five days after publication, as provided by law. Page 69 of 78 Ordinance No. _________ Page 2 of 2 PASSED by the City Council of the City of Port Orchard, APPROVED by the Mayor and attested by the Clerk in authentication of such passage this 18th day of December 2018. Robert Putaansuu, Mayor ATTEST: SPONSOR: Brandy Rinearson, MMC, City Clerk John Clauson, Councilmember APPROVED AS TO FORM: Sharon Cates, City Attorney PUBLISHED: EFFECTIVE DATE: Page 70 of 78 City of Port Orchard 216 Prospect Street, Port Orchard, WA 98366 (360) 876-4407 • FAX (360) 895-9029 Agenda Staff Report Agenda Item No.: Business Item 7E Meeting Date: December 18, 2018 Subject: Adoption of an Ordinance Ratifying the Prepared by: Noah Crocker Collective Bargaining Agreement with Finance Director Teamsters Local No. 589 Representing the Atty Routing No.: NA Public Works Employees Atty Review Date: NA Summary: The City’s negotiating team consisting of City Attorney Sharon Cates, Mayor Robert Putaansuu, City Finance Director Noah Crocker, Director of Public Works/Engineering Mark Dorsey, Utility Facilities Operations Manager Thomas Hunter, and HR Coordinator Deborah Howard has reached a tentative agreement with Teamsters Local No. 589 representing the City’s Public Works Employees. The Agreement has been ratified by the Public Works Employees’ bargaining unit. The Agreement is not a public document until approved by the Council and signed by the parties and is therefore not attached to this staff report. Recommendation: The City’s negotiating team recommends that the City Council ratify the Collective Bargaining Agreement and authorize the Mayor to execute the Agreement. Relationship to Comprehensive Plan: N/A Motion for consideration: I move to adopt an Ordinance ratifying the terms of the Collective Bargaining Agreement with the Teamsters Local 589 representing the Public Works Employees’ bargaining unit and authorize the Mayor to execute the same. Fiscal Impact: The fiscal impact is consistent with the 2019-2020 biennial budget. Alternatives: Decline to ratify the Agreement. Attachments: Ordinance Page 71 of 78 This Page Intentionally Left Blank Page 72 of 78 ORDINANCE NO. _____ AN ORDINANCE OF THE CITY OF PORT ORCHARD, WASHINGTON, RATIFYING A COLLECTIVE BARGAINING AGREEMENT WITH THE TEAMSTERS LOCAL NO. 589, REPRESENTING THE PUBLIC WORKS EMPLOYEES; PROVIDING FOR SEVERABILITY AND PUBLICATION; AND SETTING AN EFFECTIVE DATE. WHEREAS, the City’s Public Works Employees are represented by Teamsters Local No. 589 (the “Teamsters”); and WHEREAS, the current Collective Bargaining Agreement with the Teamsters expires on December 31, 2018; and WHEREAS, the City’s negotiating team has reached a tentative Agreement with the Teamsters for a new three (3) year contract, and the City’s negotiating team has recommended that the Council ratify the tentative Agreement; and WHEREAS, the Public Works Employees have ratified the Agreement; and, WHEREAS, the Council has reviewed the proposed Collective Bargaining Agreement and finds it is in the best interests of the City and its employees to ratify the Agreement; now, therefore; THE CITY COUNCIL OF THE CITY OF PORT ORCHARD, WASHINGTON, DO ORDAIN AS FOLLOWS: SECTION 1. The City Council hereby ratifies the tentative Collective Bargaining Agreement reached between the negotiating teams for the Teamsters representing the Public Works Employees and the City as attached hereto as Exhibit A, and the Mayor is hereby authorized to execute the same. SECTION 2. Severability. If any section, sentence, clause or phrase of this Ordinance should be held to be unconstitutional or unlawful by a court of competent jurisdiction, such invalidity or unconstitutionality shall not affect the validity or constitutionality of any other section, sentence, clause or phrase of this Ordinance. SECTION 3. Publication. This Ordinance shall be published by an approved summary consisting of the title. SECTION 4. Effective Date. This Ordinance shall take effect and be in full force and effect five days after publication, as provided by law. Page 73 of 78 Ordinance No. _________ Page 2 of 2 PASSED by the City Council of the City of Port Orchard, APPROVED by the Mayor and attested by the Clerk in authentication of such passage this 18th day of December 2018. Robert Putaansuu, Mayor ATTEST: SPONSOR: Brandy Rinearson, MMC, City Clerk John Clauson, Councilmember APPROVED AS TO FORM: Sharon Cates, City Attorney PUBLISHED: EFFECTIVE DATE: Page 74 of 78 City of Port Orchard 216 Prospect Street, Port Orchard, WA 98366 (360) 876-4407 • FAX (360) 895-9029 __ Agenda Staff Report Agenda Item No. Business Item 7F Meeting Date: December 18, 2018 Subject: Adoption of an Ordinance Establishing Prepared by: Noah Crocker Certain Employee Benefits for Finance Director Non-Union Represented Employees Atty Routing No: NA Classified as FLSA Non-Exempt and NA Executive Exempt Summary: Employee Wage Pay Rates are addressed on a yearly basis for non-union employees requested by the Finance Committee. The following is a change that is recommended by the Finance Committee: 1. All employees covered by this Ordinance shall be classified and compensated in accordance with the City's biennial budget. 1.1 Effective January 1, 2019 the rates of pay for Non-Union Represented Employees classified as FLSA Non-Exempt and Executive Exempt shall be increased by two and a quarter percent (2.25%). Recommendation: Staff recommends adoption of an Ordinance authorizing a rate of pay increase of 2.25% COLA for Non-Union Represented Employees classified as FLSA Non-Exempt and Executive Exempt, effective January 1, 2019. Relationship to Comprehensive Plan: None. Motion for consideration: I move to adopt an Ordinance, approving the Employee Benefits Policy to reflect a rate of pay increase of 2.25% COLA effective January 1, 2019 for non-union represented employees classified as FLSA Non-Exempt and Executive Exempt. Fiscal Impact: The fiscal impact is consistent with the 2019-2020 biennial budget. Alternatives: Not approve this request. Attachment: Ordinance. Page 75 of 78 This Page Intentionally Left Blank Page 76 of 78 ORDINANCE NO. _________ AN ORDINANCE OF THE CITY OF PORT ORCHARD, WASHINGTON, ESTABLISHING A COLA INCREASE EFFECTIVE JANUARY 1, 2019, FOR NON-UNION REPRESENTED EMPLOYEES CLASSIFIED AS FLSA NON-EXEMPT AND CLASSIFIFED AS FLSA EXECUTIVE EXEMPT; PROVIDING FOR SEVERABILITY AND PUBLICATION; AND SETTING AN EFFECTIVE DATE. WHEREAS, the City of Port Orchard has established certain employment benefits for non-union employees; and WHEREAS, the City Council deems it in the best interest of the City and City employees to periodically review and update employment benefits, and, in so doing, has determined it is appropriate to adjust the established rates of pay for non-union employees by providing a cost of living adjustment; now, therefore; THE CITY COUNCIL OF THE CITY OF PORT ORCHARD, WASHINGTON, DO ORDAIN AS FOLLOWS: SECTION 1. All employees covered by this Ordinance shall be classified and compensated in accordance with the City's biennial budget. SECTION 2. Effective January 1, 2019 the rates of pay for all Non-Union Represented Employees classified as FLSA Non-Exempt and Executive Exempt shall be increased by two and a quarter percent (2.25%). SECTION 3. This ordinance shall not change or limit other benefits not listed that covered employees currently have though their employment with the City. SECTION 4. Severability. If any section, sentence, clause or phrase of this Ordinance should be held to be unconstitutional or unlawful by a court of competent jurisdiction, such invalidity or unconstitutionality shall not affect the validity or constitutionality of any other section, sentence, clause or phrase of this Ordinance. SECTION 5. Publication. This Ordinance shall be published by an approved summary consisting of the title. SECTION 6. Effective Date. This Ordinance shall take effect and be in full force and effect five days after publication, as provided by law. Page 77 of 78 Ordinance No. ___ Page 2 of 2 PASSED by the City Council of the City of Port Orchard, APPROVED by the Mayor and attested by the Clerk in authentication of such passage this 18th day of December 2018. Robert Putaansuu, Mayor ATTEST: SPONSOR: Brandy Rinearson, MMC, City Clerk John Clauson, Councilmember APPROVED AS TO FORM: Sharon Cates, City Attorney PUBLISHED: EFFECTIVE DATE: Page 78 of 78