07/20/2021 - Work Study - PacketPlease turn off cell phones during meeting and hold your questions for staff until the meeting has been adjourned Meeting materials are available on the City’s website: www.cityofportorchard.us or by contacting the City Clerk’s Office, 360.876.4407 The City of Port Orchard does not discriminate on the basis of disability. Contact the City Clerk’s office should you need special accommodations.
City of Port Orchard Council Work Study Session
July 20, 2021
6:30 p.m.
Public Remote access Link: https://us02web.zoom.us/j/87530246935
Zoom Webinar ID: 875 3024 6935
Zoom Call-In: 1 253 215 8782
CALL TO ORDER
Pledge of Allegiance
BUSINESS ITEM
1.Adoption of a Resolution Authorizing Temporary Amendment of City
of Port Orchard Procurement Policies Pertaining to Change Order
Authority for Contract No. 036-21 with ACI for the Sidney Avenue
Sewer Repair Construction Project (Dorsey) Page 2
DISCUSSION ITEMS
1.Presentation: Beyond Net Zero Carbon (PSE, Mauer)
Estimated Time: 15 minutes
2.Water & Sewer Capital Facility Charges Exceptions (Crocker) Page 6
Estimated Time: 30 minutes
3.American Rescue Plan Act (Putaansuu) Page 21
Estimated Time: 15 minutes
4.Law Enforcement Legislative Updates (Archer/M. Brown)
Estimated Time: 30 minutes
Good of the Order
Mayor: Rob Putaansuu
Administrative Official
Councilmembers: Bek Ashby (Mayor Pro-Tempore)
Finance Committee
Economic Development & Tourism Committee Transportation Committee, Chair KRCC/KRCC PlanPol-alt /KRCC TransPol
PSRC-alt/PSRC TransPOL-Alt/PRTPO
Shawn Cucciardi Finance Committee E/D & Tourism Committee, Chair Kitsap Economic Development Alliance
Fred Chang Economic Development & Tourism Committee Land Use Committee
Jay Rosapepe Utilities/Sewer Advisory Committee Land Use Committee, Chair
Transportation Committee
Lodging Tax Advisory Committee, Chair KRCC-alt
John Clauson
Finance Committee, Chair Utilities/Sewer Advisory Committee Kitsap Public Health District-alt
Cindy Lucarelli Festival of Chimes & Lights Committee, Chair Utilities/Sewer Advisory Committee, Chair
Kitsap Economic Development Alliance
Scott Diener Land Use Committee
Transportation Committee
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
Matt Brown
Police Chief
Brandy Rinearson, MMC, CPRO
City Clerk
Meeting Location:
Council Chambers, 3rd Floor
216 Prospect Street
Port Orchard, WA 98366
Contact us:
(360) 876-4407
cityhall@cityofportorchard.us
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 1 Meeting Date:
July 20, 2021
Subject: Adoption of a Resolution Authorizing Prepared by: Mark Dorsey, P.E.
Temporary Amendment of City of Port Public Works Director
Orchard Procurement Policies Pertaining Atty Routing No.: 366922.0009 - PW
to Change Order Authority for Contract Atty Review Date: July 16, 2021
No. 036-21 with ACI for the Sidney Ave.
Sewer Repair Construction Project
Summary: By Resolution No. 042-20, the Port Orchard City Council adopted Procurement Policies and
Procedures for the City’s procurement of goods and services to benefit the residents of Port Orchard. At
Section 7.0, Change Orders, the City Council delegated signatory authority for Change Orders for large
public works projects to the Department Director (with a maximum delegated authority of $50,000) and
to the Mayor (with a maximum delegated authority of $100,000), so long as the particular Change Order
did not exceed 10% of either the Council-authorized budget for the project or the original contract
amount authorized by Council. For smaller projects, the 10% threshold can unintentionally lower the
$50,000 and $100,000 caps, requiring staff to return to Council for certain Change Orders that are still
under these caps.
On April 13, 2021, the Port Orchard City Council adopted Contract No. C036-21 with Active Construction,
Inc. (ACI) for the Sidney Avenue Sewer Repair Construction Project (the “Project”) in the amount of
$358,358. On July 9, 2021, the City’s Public Works Department issued the Notice to Proceed for the
Project to ACI. On July 13, 2021, and in compliance with the City’s current Procurement Policy, the
Department Director executed Force Account Work Change Directives No. 1 thru No. 3 in the total
estimated dollar amount of $35,000, as this amount was within both the $50K delegated authority (under
$50k and under 10% of the total Contract amount for the Project). Once this Work is performed and the
actual dollar amounts are determined, Change Order No. 1 will then be executed by the Department
Director, if it does not exceed $35,836.
The Public Works Department has received a request by ACI for an additional $10,000 in Force Account
Work Change Directive for this Project, considering identified potential changes in conditions for the
Project. This Project, and its timely completion, are imperative to the public health and safety. It is
anticipated that future Change Orders may exceed the 10% cap set out in the policies and the $50,000 or
$100,000 limit also set out in the policies. Returning to Council for approvals for this Project will result in
increased costs and delay. Accordingly, the Public Works Department is requesting a limited waiver of
the 10% cap for Change Orders for the life of this Project and an increase in the delegated authority. This
will allow the Department Director to approve up to $85,000 or the Mayor to approve up to $135,000 in
total Contract Change Order Authority without suspending the Work for needed Council approval.
Page 2 of 24
Staff Report 1
Page 2 of 2
Recommendation: Staff recommends adopting Resolution No. 048-21, temporarily amending Section
7 of the City’s Procurement Policy to 1) remove the 10% cap and 2) increase the delegated authority to
$85K for the Department Director and $135K for the Mayor on Change Orders for the Sidney Avenue
Sewer Repair Construction Project.
Relationship to Comprehensive Plan: Chapter 7 - Utilities
Motion for Consideration: I move to adopt Resolution No. 048-21, temporarily amending Section 7 of
the City’s Procurement Policy to 1) remove the 10% cap and 2) increase the delegated authority to
$85K for the Department Director and $135K for the Mayor on Change Orders for the Sidney Avenue
Sewer Repair Construction Project.
Alternatives: Do not adopt.
Fiscal Impact: Funding provided within the 2021-2022 Biennial Budget. A budget amendment may be
required.
Attachments: Resolution No. 048-21.
Page 3 of 24
RESOLUTION NO. 048-21
A RESOLUTION OF THE CITY OF PORT ORCHARD, WASHINGTON,
TEMPORARILY AMENDING SECTION 7 OF THE CITY OF PORT
ORCHARD’S PROCUREMENT POLICIES FOR THE SIDNEY AVENUE
SEWER REPAIR CONSTRUCTION PROJECT PERTAINING TO
CHANGE ORDERS.
WHEREAS, in early 2021, the City Council authorized the Sidney Avenue Sewer Repair
Construction Project to make time-sensitive repairs to the sewer infrastructure and sidewalk
and pavement repairs from Dekalb to Kitsap; and
WHEREAS, in April 2021, the City Council authorized a contract with ACI Construction
for the Project in the amount of $358,358; and
WHEREAS, changes in conditions for the Project have led to additional Work and
Change Orders for the Project, which are also time-sensitive and delaying the additional Work
would cause increased Project costs and delayed completion; and
WHEREAS, by the City’s Procurement Policies, adopted by Resolution No. 042-20, the
City Council delegated signatory authority for Change Orders for large public works projects to
the Department Director (with a maximum delegated authority of $50,000) and to the Mayor
(with a maximum delegated authority of $100,000), so long as the particular Change Order did
not exceed 10% of either the Council-authorized budget for the project or the original contract
amount authorized by Council; and
WHEREAS, for smaller projects such as this Project, the 10% threshold can
unintentionally lower the $50,000 and $100,000 caps, requiring staff to return to Council for
certain Change Orders that are still under these caps; and
WHEREAS, staff requests the Council waive the 10% threshold, but not the $50,000 and
$100,000 caps, for this Project to ensure the Project moves forward without delay and still
consistent with the City Council’s direction; and
WHEREAS, due to anticipated cost overruns, staff also requests an increase in the
delegated authority to $85,000 for the Department Director and $135,000 for the Mayor, to
avoid unnecessary delays in returning to Council for intermittent approvals; and
WHEREAS, the City Council finds that a temporary waiver is in the best interests of the
City and its residents by avoiding unnecessary delays and associated cost increases for this
critical Project; now, therefore
THE CITY COUNCIL OF THE CITY OF PORT ORCHARD, WASHINGTON, HEREBY RESOLVES
AS FOLLOWS:
THAT: It is the intent of the Port Orchard City Council that the recitals set forth above
are hereby adopted and incorporated as findings in support of this Resolution.
Page 4 of 24
Resolution No. 048-21
Page 2 of 2
THAT: The City Council modifies Section 7.0 of the City’s Procurement Policies and
Procedures for this Project for its duration as follows:
Upon recommendation of the department director, and demonstration that a Change
Order is necessary and reasonable, the department director is authorized to approve
any and all Change Orders that do not exceed $85,000. The Mayor is authorized to
approve any and all Change Orders that do not exceed $135,000. A completed Change
Order form, attached as Exhibit 6, must be filed with the contract.
THAT: The Resolution shall take full force and effect upon passage and signatures
hereon and shall be automatically rescinded without further action of the City Council
upon completion of the Sidney Avenue Sewer Repair Construction Project.
PASSED by the City Council of the City of Port Orchard, SIGNED by the Mayor and attested
by the Clerk in authentication of such passage this 20th day of July 2021.
Robert Putaansuu, Mayor
ATTEST:
Brandy Rinearson, MMC, City Clerk
Page 5 of 24
Water & Sewer
Capital Facility Charges
Exceptions Continued
07.20.2021
Page 6 of 24
Water & Sewer Capital Facility Charge Discussion:
Exceptions Continued
•Slide 3-5:POMC Capital Facility Charge Tables Proposals
•Slide 6-7:Policy Discussion-How do we calculate the ERU?
•Slide 8-14:Scenario’s
Page 7 of 24
Port Orchard Municipal Code
Current Capital Facility Charges:
Water Residential:Capital Facility Charges are paid based on ERU’s
Water Commercial:Capital Facility Charges are paid based on Meter Size Table ¾” = 1 ERU
Sewer Residential:Capital Facility Charges are paid based on ERU’s
Sewer Commercial:Capital Facility Charges are paid based on ERU’s
Proposal Capital Facility Charges :
Water (Residential & Non-Residential):Capital Facility Charges are paid based on ERU’s
Sewer (Residential & Non-Residential):Capital Facility Charges are paid based on ERU’s
Page 8 of 24
Current
Water and Sewer Capital Facility Charge
Water Capital Facilities Charge Charge
RESIDENTIAL Per ERU $11,571
NON-RESIDENTIAL Per Meter Size Charge
¾” Meter $11,571
1” Meter $19,324
1-1/2” Meter $38,531
2” Meter $61,673
3” Meter $115,710
4” Meter $192,889
Irrigation No Fee-Does not affect Fire flow
*Based on American Water Works Association meter Equivalency Factors
Sewer Capital Facilities Charge Charge Per ERU
General Facility Fee $8,525
Sewer Wastewater Treatment Facility Fee ~$3,597
McCormick Land Co. Div. 1-10 Per ERU ~$881
$12,122
Page 9 of 24
Proposal
Water and Sewer Capital Facility Charge
Water Capital Facilities Charge Charge Per ERU
(RESIDENTIAL & NON-RESIDENTIAL)$11,571
Irrigation No Fee-Does not affect Fire flow
Sewer Capital Facilities Charge
(RESIDENTIAL & NON-RESIDENTIAL)
Charge Per ERU
General Facility Fee $8,525
Sewer Wastewater Treatment Facility Fee ~$3,597
McCormick Land Co. Div. 1-10 Per ERU ~$881
$12,122
Page 10 of 24
Proposal
Water and Sewer Capital
Facility Charge
How do we
determine the
ERU?
Page 11 of 24
Proposal for Calculating the Water & Sewer ERU
Proposal
•Utilize current consumption data for the most recent 3-year utility billing period
•Base the ERU count on the highest consecutive 12-month period over the previous 3 years
•Total Consumption for the period divided by 180 gallons per day divided by 365 days
•All ERU’s are rounded up to the nearest whole ERU
What if no consumption data which meet the 3 period?
•Assume a minimum 1 ERU
•Calculation may exclude anomalies such as unusual high consumption levels due to water leaks and/or
other extenuating circumstances
•Must maintain minimum bi-monthly fee consistent with city practices to be eligible
Page 12 of 24
Scenarios
Analysis
Provided for
in the POMC
High to Low use Consumption-Commercial
Low to High use Consumption-Commercial
Change in Use
Residential to Commercial (Office)
Residential to Commercial
(Restaurant)
Commercial (Box Store) to
Residential (Apartments)
Mixed Use Large Restaurant to Commercial
and Residential
Page 13 of 24
High to Low Use Consumption: Capital Facility Charges
(Commercial to Commercial)
Large Restaurant to Office Space (4-unit suite)
Utility Calculated
Current
New
Application
Net Impact Credit New Charge Net Charge
Water 5 ERU’s 4 ERU’s Reduce 1 ERU ($57,855)$46,284 ($11,571)
Sewer 5 ERU’s 4 ERU’s Reduce 1 ERU ($60,612)$48,490 ($12,122)
Proposal:
•Everything is Charged and Credited on an ERU basis
•Water CFC Revenue:($11,571)
•Sewer CFC Revenue:($12,122)
•Per Code No Water and Sewer CFC Charge
•No Refunds Page 14 of 24
Low to High Use Consumption: Capital Facility Charges
(Commercial to Commercial)
Office Space (2 unit) to Large Restaurant
Utility Calculated
Current
New
Application
Net Impact Credit New Charge Net Charge
Water 2 ERU’s 4 ERU’s Increase 2 ERU’s ($23,142)$46,284 $23,142
Sewer 2 ERU’s 4 ERU’s Increase 2 ERU’s ($24,245)$48,490 $24,245
Proposal:
•Everything is Charged and Credited on an ERU basis
•Water CFC Revenue:$23,142
•Sewer CFC Revenue:$24,245
Page 15 of 24
Change in Use: Capital Facility Charges
(Residential to Commercial)
Proposal:
•Everything is Charged and Credited on an ERU basis
•Water CFC Revenue:$-
•Sewer CFC Revenue:$-
•No Refunds or Credits
Utility Calculated
Current
New Application Net Impact Credit New Charge Net Charge
Water 1 ERU 1 ERU No Change ($11,571)$11,571 $-
Sewer 1 ERU 1 ERU No Change ($12,122)$12,122 $-
Single Family Residential (3000 sq ft) to Office-1 unit
Page 16 of 24
Change in Use: Capital Facility Charges
(Residential to Commercial)
Proposal:
•Everything is Charged and Credited on an ERU basis
•Water CFC Revenue:$23,142
•Sewer CFC Revenue:$24,244
•No Refunds
Utility Calculated
Current
New Application Net Impact Credit New Charge Net Charge
Water 1 ERU 3 ERU’s Increase by 2 ERU’s ($11,571)$34,713 $23,142
Sewer 1 ERU 3 ERU’s Increase by 2 ERU’s ($12,122)$36,367 $24,244
Single Family Residential (3000sq ft) to Small Restaurant
Page 17 of 24
Change in Use: Capital Facility Charges
(Commercial to Residential)
Proposal:
•Everything is Charged and Credited on an ERU basis
•Water CFC Revenue:$208,278
•Sewer CFC Revenue:$218,203
•No Refunds
Utility Calculated
Current
New Application Net Impact Credit New Charge Net Charge
Water 2 ERU 20 ERU’s Increase by 18 ERU’s ($23,142)$231,420 $208,278
Sewer 2 ERU 20 ERU’s Increase by 18 ERU’s ($24,245)$242,447 $218, 203
Large Box Store to Apartments
Page 18 of 24
Mixed Use:Capital Facility Charges
Commercial to Commercial & Residential
Proposal:
•Everything is Charged and Credited on an ERU basis
•Water CFC Revenue:$428,127
•Sewer CFC Revenue:$448,528
•No Refunds
Utility Calculated
Current
New Application Net Impact Credit New Charge Net Charge
Water 4 ERU 1 ERU
40 ERU’s
Increase by 37
ERU’s
($46,284)$11,571
$462,840
$428,127
Sewer 4 ERU 1 ERU
40 ERU’s
Increase by 37
ERU’s
($48,490)$12,122
$484,895
$448,528
Large Restaurant to Espresso Bar & 40 Unit Apartments
Page 19 of 24
Discussion
Page 20 of 24
American Rescue Plan Act
Below are the high points that I thought would be relevant to Port Orchard for the
deployment of our $2.8M in ARPA funds. These funds will be come in two equal
disbursements, one now and one next year.
Capital funds must be spent by 2026. Program funds must be spent by 2024.
Economic Harm – Aid to Households, Businesses and Non-Profits
Local Fiscal Recovery – Households – Utility Assistance
Business Recovery – Utility Assistance
Local Fiscal Recovery – Not an option for Port Orchard, lost Revenue does not
include utility accounts.
Water & Sewer infrastructure – Projects must be eligible to receive financial
assistance through the EPA’s Clean Water State Revolving Fund or Drinking
Water State Revolving Fund.
Protect waterbodies from pollution.
Improve drinking water infrastructure.
Consolidation of drinking water systems – Old Clifton Intertie
Cyber Security needs to protect water & sewer systems.
Page 21 of 24
Unallowed uses – Payment of loans, replenishing reserves, and non-federal grant
matches.
Reporting requirements
Records must be retained for 5 years after the last expenditure.
Quarterly reports due 30 days after the end of the quarter
Annual report as of July 31st due Aug 31st
Utility Ratepayer Protection – Separate $500M grant process. We’re looking into
this program.
Our Funding - $1.4M in 2021 & $1.4M in 2022
Best Options for Port Orchard – Well 11 Construction, Marina Pumpstation, Old
Clifton intertie & booster pump station and/or a utility grant program for
consumers and businesses.
Recommendation – Design the Old Clifton intertie & booster pump station
estimated cost $500K. After the design is compete and as we learn more about
other utility assistance programs, we should reevaluate our options for next
steps.
Future funding – Cost overruns on the Marina Pump Station or Well 11, Old
Clifton Intertie construction and/or a utility grant program.
Kitsap County has $53M to deploy. Based on our conversation with the County
they are looking to deploy most of their funding to human services and economic
recovery. Looking to spending these dollars externally of Kitsap County needs and
operations.
Page 22 of 24
AMERICAN RECOVERY PLAN ACT (ARPA)
FUNDING CATEGORIES – DRAFT
Capital Projects COVID-Related County Impacts Public Health Response Disproportionately Impacted Communities Broadband Expansion Business Recovery
Residential
Assistance and
Homelessness
Mental Health
and Substance
Abuse Services
Projects Projects Projects Projects Projects Projects Projects Projects
Ventilation/UV
Systems (Jail, etc.)
Court System
Backlog
COVID Testing Summer Youth Programs Unserved and
Underserved
Areas
Grants (Business
and Non-Profits)
Mortgage School
Counseling
Services
Courthouse
Entrance
Emergency Leave Contact Tracing Improved Access to
Social Services
Expand to Rural
Areas – Business
and Residents
Technical
Assistance
Rent Aging Assistance
Office Lobbies
(Spacing, etc.)
Cleaning Services Vaccination
Centers
Afterschool Programs Upgrades to Urban
Areas
PPE Utilities (water,
power, sewer)
Youth Services
Staging Warehouse
Improvements
Remote Court
Services
Enforcement of
Public Health
Measures
BIPOC Support Emphasis WiFi Hotspots Tourism Marketing Homeless Shelters Field Response
Units (DCRs)
Affordable Housing
Purchase or
Development
Technology for
Remote Work and
Cybersecurity
PPE Improved Access to
County Services
Restaurant Support Homeless and Social
Services
Wastewater and
Stormwater
Facilities
Administrative
Expenses
Childcare Services
(subsidies, programs,
etc.)
Workforce
Development
Food
Restoration of
Staffing Levels
(Jan 2020)
Eviction Support
Services
Partners Partners Partners Partners Partners Partners Partners Partners
County Departments
and Offices
County
Departments and
Offices
Health, DEM, Fire
Districts
Schools, Libraries,
YMCA, Marvin Williams,
Youth Service. KCR,
DSHS
KPUD, NoaNet KEDA, SBDC,
Chambers, VKP
KCR, HSC, Salvation
Army, Utility
Purveyors, DRC,
WSU Extension, FM
OESD, School
Districts, YMCA,
Aging, CHI
Current Funding Current Funding Current Funding Current Funding Current Funding Current Funding Current Funding Current Funding
No No Yes
No No Yes
Yes
No
Page 23 of 24
KPHD
12/31/21
PPP, EIDL
Until Expended
Rent, Utility, Food
Homelessness
12/31/21
Capital Projects COVID-Related
County Impacts
Public Health
Response
Disproportionately
Impacted Communities
Broadband
Expansion Business Recovery
Residential
Assistance and
Homelessness
Mental Health
and Substance
Abuse Services
Other ARPA Other ARPA Other ARPA Other ARPA Other ARPA Other ARPA Other ARPA Other ARPA
Yes
Capital Projects
Fund
No No Yes
Food, Technical
Assistance
Yes Yes
PPP, EIDL
PSE
Electricity
Low-Income Rent
and Utilities
Yes
State Funding
Page 24 of 24