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.
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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;
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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.
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Ordinance No. ___
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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:
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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.
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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
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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.
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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
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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.
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Public Hearing 6A
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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.
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Public Hearing 6A
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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.
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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
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Ordinance No. ___
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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
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Ordinance No. ___
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APPROVED AS TO FORM:
Sharon Cates, City Attorney
PUBLISHED:
EFFECTIVE DATE:
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Ordinance No. ___
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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
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(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;
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(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:
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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
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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.
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(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.
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(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
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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
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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
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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
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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
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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.
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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.
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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:
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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.
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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.
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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
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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.
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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