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08/12/1996 - Regular - MinutesPort Orchard, Washington August 12, 1996 Council of the City of Port Orchard, Washington, called to regular session by Mayor Leslie J. Weatherill at 7:30 PM at City Hall, 216 Prospect Street. Councilmembers present: Clauson, Morrison, Wyatt, Geiger, Powers and Grable. Councilman Van Zee excused. Staff present: Police Chief Mathews, City Planner Gross, City Treasurer Tompkins, City Engineer Curles, Fire Chief Snow, City Clerk Parks, Deputy Clerk Hager and City Attorney Ann Hanson. Councilman Geiger led the audience and Council in the Pledge of Allegiance. Mayor Weatherill asked for audience comments for items not listed on this agenda. Robert Gallegos, 340 Tremont W., thanked Council and City staff for their support for a very successful 1996 Fathoms 0' Fun Festival. Vince Berndsen, representing Boston Market Restaurants, requested an easement in the northern Mile Hill Drive right of way to allow placement of a stormwater biofiltration system. Subject property is situated at the northwestern corner of Mile Hill Drive and Payseno Lane intersection. On motion by Councilman Clauson, seconded by Councilmen Wyatt and Morrison, Council approved request for an easement in the northern Mile Hill Drive right of way, as submitted by Vince Berndsen, representing Boston Market Restaurants. The easement will allow placement of a storm water biofiltration system. On motion by Councilman Clauson, seconded by Councilman Grable, Council approved items on the consent agenda as follows: a. (1) July 22, 1996 regular Council meeting (2) August 5, 1996 Study Session - Zoning Task Force b. Approval of Claim Warrants No. 25097-25220 in the amount of $170,393.02 and July 1996 Payroll Warrant Nos. 125237-125437 in the amount of $209,228.48. C. Resolution No. 1750 approving and ratifying the Agreement regarding the transfer of assets and assumption of obligations of Utility Local Improvement District No. 6 from Kitsap County. City Engineer Curles brought Council up to date on the questionnaire which was inserted in the July 1996 Citizen's Update asking for citizens comments and recommendations for the City's future parks. Mr. Curles reported 86 questionnaires were returned and their names were submitted in a drawing for a $25.00 gift certificate for a local restaurant. At this time, Mayor Weatherill drew the name of Marge Schiele as the winner of the $25.00 gift certificate. Don Miles, Kitsap County Health District and George Mason, Kitsap County Public Works, discussed the proposed Memorandum of Understanding concerning the Gorst Sanitary Sewer System and the formation of a partnership to prepare a feasibility study to determine the most cost effective way to provide Gorst and the airport with sanitary sewer. The Memorandum of Understanding is between Kitsap County, City of Bremerton, City of Port Orchard, Sewer District No. 5, Port of Bremerton, Olympic View Land Fill, Owners of Land in the South Kitsap Industrial Urban Growth Area, Gorst Business Community and Northwest Corporate Campus. On motion by Councilwoman Powers, seconded by Councilman Grable, Council authorized Mayor Weatherill to sign the Memorandum of Understanding between Kitsap County, City of Bremerton, City of Port Orchard, Sewer District No. 5, Port of Bremerton, Olympic View Land Fill, Owners of Land in the South Kitsap Industrial Urban Growth Area, Gorst Business Community and Northwest Corporate Campus to prepare a feasibility study to determine the most cost effective way to provide Gorst and the airport with sanitary August 12, 1996 Page 2 of 3 Powers.and Grable voting aye. Donald Wagoner, Rural` Development Specialist, United States Department of Agriculture, discussed in detail the "Letter of Conditions" regarding the loan application for the „ 1�`1 new City Hall. Mr. Wagoner requested permission for Mayor Weatherill to sign "Letter ti,� of Intent to Meet Conditions" and "Request for Obligation for Funds". These two C,1' UjC1fc documents are needed t sign to t 60*14 'e ":the loan application process, in `6�a addition to these documents, it will be neee5s`ary"f0 sign other forms as outlined in "Letter of Conditions", Attachment "A". On notion by Councilman Morrison, seconded by Councilman Grable, Council authorized the Mayor to sign "Letter of Intent to Meet Conditions" and "Request for Obligation for J Funds" and other forms necessary after- lean approval —is—rece3ved � a n'ti a tx ....t7 , as outlined in "Letter of onions S%f�` ,rA�.,....s 1 Mayor Weatherill called for a 5 minute recess with meeting reconvening at 8:40 PM. Councilwoman Powers moved to reconsider motion to authorize Mayor Weatherill to sign Memorandum of understanding between Kitsap County, City of Bremerton, City of Port Orchard, Sewer District No. 5, Port of Bremerton, Olympic View Land Fill, Owners of Land in the South Kitsap Industrial Urban Growth Area, Gorst Business Community and Northwest Corporate Campus to prepare a feasibility study to determine the most cost effective way to provide Gorst and the airport with sanitary sewer, seconded by Councilman Clauson. Motion passed with 6 ayes. Councilmembers Clauson, Powers, Geiger, Powers and Grable voting aye. Councilwoman Powers moved to amend motion to further authorize the City and Sewer District No. 5 share the cost for the feasibility study not to exceed 15. of $150,000, 0,,dJ seconded by Councilman Clauson. Motion passed with 4 ayes and 2 nays. Councilmembers bf, Clauson, Powers, Geiger and Grable voting aye. Council approved original motion as amended with 4 ayes and 2 nays. Councilmembers Clauson, Powers, Geiger, s and Grable voting aye. Mayor Weatherill opened the 7:35 PM Public Hearing regarding a proposal to vacate a portion of Bank Street and Prospect Street. City of Port Orchard, petitioner. Legal Description: Attachment "B". Lawrence Curles spoke on behalf of the petitioner, the City of Port Orchard, discussing basis for requesting the street right of way vacation. Subject area would be to the outer edge of the sidewalk. Mayor Weatherill called for public input either for or against the petition to vacate a portion of Bank Street and Prospect Street, as no response was received, Mayor Weatherill closed the public input portion of the public hearing and referred this matter to Council for consideration. On motion by Councilman Clauson, seconded by Councilman Geiger, Council approved vacating a portion of Bank Street and Prospect Street, as petitioned by the City of Port Orchard. Legal Description: Attachment "B". On motion by Councilman Morrison, seconded by Councilman Geiger, Council approved Ordinance No. 1656 amending Title Nine of the Port Orchard Municipal Code by adding a section relating to crimes that interfere with pedestrians in a public place. Mayor Weatherill announced the City of Port Orchard has been selected to receive the economic/community development grant of $1,000.00 which is sponsored by the National Association of Towns and Townships and Wal-Mart Stores, Inc. This award is a result of a nomination submitted by Miss Sara Croves in recognition of Mayor Weatheri 1 l 's August 12, 1996 Page 3 of 3 outstanding community leadership and contributions to the community. On motion by Councilwoman Powers, seconded by Councilman Morrison, Council designated eptA\� � the anticipated $1,0000 award sponsored by the National Association of Towns andcQb:'J� Townships and Wal-Mart Stores, Inc., be allocated to Public Festivals, specifically to the free summer concerts at the Port of Bremerton Park on the waterfront. gfa�f9� Council designated August 19, 1996, 7:30 PM at Fire Station No. 31, 200 Tremont Street, as a special study session to meet with S. Chamberlain and Associates to discuss the Bethel Wye traffic signal. On motion by Councilman Geiger, seconded by Councilman Clauson, Council authorized the Mayor to sign the third revision of the Bremerton Water Intertie Agreement which will expire in 1999. Council designated the week of October 21, 1996 as fall clean-up week for the City of Port Orchard. On motion by Councilman Clauson, seconded by Councilman Geiger, Council authorized the City Engineer to proceed with transferring title of Lund Road right of way (west of the city limits) to Kitsap County. On motion by Councilman Morrison, seconded by Councilman Clauson, Council authorized the City Engineer to close Port Orchard Boulevard to expedite the paving project. On motion by Councilman Clauson, seconded by Councilman Morrison, Council declared the PD-80 machine used by the Public Works Department to make blue prints, as surplus and authorized the City Engineer to dispose of, in the best interest of the City. On motion by Councilman Clauson, seconded by Councilman Grable, Council denied a request to allow an individual to live at the Lundberg RV Park as a park host. On motion by Councilman Morrison, seconded by Councilman Geiger, Council declared a 1979 Ford Pick-up, Rescue Vehicle VIN #F37JRBG0500 as surplus and authorized the Fire Chief to dispose of, in the best interest of the City. Meeting adjourned at 9:24 PM. PATRICIA PARKS, CITY CLERK LESLIE J. WEATHERILL, MAYOR August 12, 1996 Attachment "A" UNITED STATES Rural District Office I DEPARTMENT Development 1011 E. Main, Suite 306 OF Puyallup Executive Park AGRICULTURE Puyallup, WA 98372-6771 Tel: (206) 845-9272 FAX: (206) 845-9106 August 12, 1996 CITY OF PORT ORCHARD ATTN: Mayor Leslie J. Weatherill 216 Prospect Street Port Orchard, WA 98366 LETTER OF CONDITIONS: COY of Port Orcbgrd Municipal Building Dear Honorable Mayor Weatherill: This letter establishes conditions which must be understood and agreed to before further consideration may be given to the application. This offer of financial assistance is being made to the City of Port Orchard. Any changes in project costs, source of funds, scope of services, or any other significant changes in the project or applicant must be reported to and approved by the Rural Housing Service (RHS) by written amendment to this letter. Any changes not approved by RHS shall be cause for discontinuing processing of the application. This funding offer is made through the Rural Housing Service (RHS), formerly known as Farmers Home Administration (FmHA) and the Rural Development Administration (RDA). FmHA and RDA community facility programs are now administered through the Rural Housing Service. This letter is not to be considered as loan and grant approval or as representation that funds are available. The docket may be completed on the basis of a loan not to exceed $3,300,000,00. If RHS makes the loan, you may make a written request that the interest rate be the lower of either the rate in effect at the time of loan approval or the rate in effect at the time of loan closing. If you do not request the lower of the two interest rates, the interest rate charged will be the rate in effect at the time of loan approval. The loan will be considered approved on the date a signed copy of Form FmHA 1940-1, Form FmHA 1940-1, "Request for Obligation of Funds", is mailed to you. If you want the lesser of the two rates, your written request should be submitted to RHS as soon as possible and prior to loan closing. In order to avoid possible delays in loan RD Rural Development is an Equal Opportunity Lender Complaints of discrirnination should be sent to: Secretary of Agriculture, Washington, D.C. 20250 August 12, 1996 Attachment "A" closing such a request should ordinarily be submitted at least 30 calendar days before loan closing. No qualified handicapped person shall, solely on the basis of handicap, be excluded from participation in, be denied the benefits of, or be subjected to discrimination under any program or activity that receives federal financial assistance, as required under, "Section 504 of the Rehabilitation Act". By accepting this loan, you are also agreeing to refinance the unpaid loan balance in whole, or in part, upon the request of the Government, if at any time it should appear to the Government that the City of Port Orchard is able to obtain a loan for such purposes from responsible cooperative or private sources at reasonable rates and terms. Please complete and return the attached: Form FmHA 1942-46, "Letter of Intent to Meet Conditions", along with the following completed forms if you desire that further consideration be given your application: FmHA 1910-11 Applicant Certification, Federal Collection Policies for Consumer or Commercial Debts [see attached form] FmHA 1940-1 Request for Obligation of Funds FmHA 400-1 Equal Opportunity Agreement, FmHA 4004 Assurance Agreement FmHA 1942-47 Loan Resolution FmHA 442-7 Operating Budget AD - 1047 **Certification Regarding Debarment Suspension and Other Responsibility Matters - Primary Cover Transactions AD - 1048 **Certification Regarding Debarment, Suspension, Ineligibility and Voluntary Exclusion - Lower Tier Covered Transactions 1940-Q Ex. Al Certification for Contracts, Grants and Loans SFLLL Disclosure Form for Lobbying Activities **You must execute Form AD-1047, "Certification Regarding Debarment, Suspension, and Other Responsibility Matters - Primary Cover Transactions," to certify that your organization is not debarred or suspended from Government assistance. You also must obtain a certification on form AD-1048, "Certification Regarding Debarment, Suspension, Ineligibility and Voluntary Exclusion - Lower Tier Covered. Transactions," from any person or entity you do business with as a result of this Government assistance, that they are not debarred or suspended from Government assistance." Page 2 August 12, 1996 Attachment "A" The loan will be secured by General Obligation Bond in the amount of $3,300,000.00. The bond will be dated and delivered the same day that the loan check is presented to the City of Port Orchard. The bond will be fully registered as to both principal and interest in the name of the "United States of America". The bond and any ordinance or resolution relating thereto must not contain any provision in conflict with the RHS Loan Resolution, applicable regulations, and law. In particular, there must be no defeasance or refinancing clause in conflict with the graduation requirements of 7 USC 1983(c)_Section 1942.19 of FmHA Instruction 1942-A, which outlines requirements concerning the preparation of the bond and bond transcript document, should be given to your bond counsel as soon as possible for their use in working with your local attorney. The City of Port Orchard should advise its bond attorney to prepare drafts of the bond ordinance/resolution and related documents and provide copies to the Rural Development Office. The security instruments must not contain a defeasance clause. The loan will be scheduled for a repayment period of twenty (20) years. The loan will be evidenced by a single General Obligation Bond with amortized installments. The amortized installments will be due and payable in annual payments. The first installment will be due twelve months from the date of the bond. A tentative Bond maturity schedule will be sent to your bond counsel by the RHS State office (interest rate may change by loan closing) You have the option of participating in the PREAUTHORIZED DEBIT (PAD) payment process. It will allow for your payment to be electronically debited from your account on the day your payment is due. If you choose this option we will provide you with Form SF 5510 at loan closing. Page 3 August 12, 1996 Attachment "A" Rural Housing Service establishes a reserve requirement of $267,630.00 to be accumulated at the rate of not less than $26,763.00.00 per year if any security other than an assessment bond is offered as security. The financing proposal is based upon funds from: RHS Loan $ 3,300,000.00 City of Port Orchard $ L77MUM TOTAL $ 5,073,000.00 Funds have been budgeted for the following estimated expenditures: MMOWCON ME 'MusTIMMURM Construction/Sales Tax $ 613,500 $ 3,300,000 Land and Rights $ 310,000 -0- Legal Services $ 146,000 -0- Architectural $ 444,000 -0- interim Interest $ 131,500 -0- Equipment $ 5,000 -0- Contingencies S 123.000 -0- $ 1,773,000 $ 3,300,000 Evidence of funds from City of Port Orchard must be provided by the applicant prior to the award of any contracts. Project costs paid prior to the start of constructions with applicant funds shall be accounted for and approved by RHS, during the first partial payment request The applicant contribution will be disbursed prior to the use of any RHS funds. Ordinarily, funds provided from other sources will be disbursed prior to the use of RHS funds. RHS funds will not be used to pre -finance funds committed to the project from other sources or the applicant. All funds will be deposited to an account designated as "Construction Account", and withdrawals from this account must be approved by the local RHS official. Funds in the construction account will be used for the payment of the cost and expense of constructing municipal building. RHS funds may not be used to reimburse the owner for certain salary/general administrative expenses. Any funds remaining after construction is complete, and not needed for the subject project, will be returned on the RHS grant. The applicant is responsible for all cost overruns in connection with the construction of this project Page 4 August 12, 1996 Attachment:. "A" i M ATI ! •� The Legal Services Agreement between the City of fort Orchard and the City attorney will need to be reviewed and approved by RHS prior to construction. The Agreement for Architectural services between the City of Port Orchard and Art Anderson, Associates needs to be approved by RHS. Any modifications or amendments to the Architectural Agreement must be approved by the RHS before they are in force, or before additional compensation is paid. The applicant will obtain a written agreement for bond counsel services with Pepper and Shefelman and provide RHS a copy of said agreement. Evidence of the following insurance and bonding coverage must be given to RHS prior to the start of construction: Liability Insurance in amounts to be determined by you upon recommendation of your attorney. 2. Fire and extended coverage insurance in an amount at least equal to the depreciated replacement value, as recommended by your engineer or architect, is required on all above -ground structures, including equipment and machinery. A copy of the policy will be retained in the RHS District office file_ The United States of America will be named as "loss payee" on such insurance policy or policies. 3_ The positions of officials entrusted with funds and other valuable property, will be covered by a position fidelity bond for the protection of general taxes, assessments, or revenue funds collected. The United States of America will be named as co -obligee in the bond_ A copy of the bond will be given to RHS. Applicant will carry suitable worlarien's compensation insurance for all its employees. Flood insurance is not required on the municipal facility. Page 5 August 12, 1996 Attachment "A" The applicant will be required to obtain interim financing for the proposed project in an amount not to exceed $3,300,000.00. You must provide the RHS District Office with documentation from the interim lender including the rates and terms of the proposed financing. RHS will concur in the agreement for interim financing once it has been determined that the loan can be closed, bids have been taken, and a contract is ready to be awarded. RHS will write a letter to the lender confirming the financing arrangements with a copy to the applicant. The interim financing must be for the RHS loan only in the amount of $3 300,000.00. The RHS loan must be closed as soon as possible after the disbursing of all interim loan funds. However, before the RHS loan can be closed the applicant will be required to provide the RHS District Office with statements from the contractor, engineer/architect, and attorney that they have been paid to date in accordance with their contracts or other agreements and in the case of your contractor['s] that any suppliers and subcontractors have been paid in accordance with the terms of their contract. RHS has reviewed the preliminary architectural report dated 6-13-96. Comments were sent in letter form tocity engineer. We request the consulting architect to incorporate our comments in the project plans and specifications or give justification for the original proposal and complete the architectural agreement and submit for final approval. This must include current cost estimate. Project development will be in accordance with Sections 1942.17 and 1942.18 of FmHA Instruction 1942-A. All procurement transactions shall be conducted in a manner so as to provide maximum open and free competition. Plans and specifications must be submitted to the RHS for approval before advertisement for bids. All contract documents including but not limited to invitations for bid, construction contracts, performance and payment bonds, and related contract material, most be submitted to the RHS for examination as to adequacy and legal sufficiency before bids can be invited_ The United States of America will be named as co -obligee on the performance and payment bonds. Sections 1942.17 and 1942.18 to FmHA Instruction 1942-A, will be used in the preparation of the contract documents. In addition, a project sign will be posted near the construction site. Construction contracts will not be awarded without the written concurrence of RHS. Page 6 Auggust 12, 1996 Attachment "A" Bid tabulations, the low bidder's proposal, the revised project cost and the engineer's recommendation of award, must be submitted to the RHS for review. A written statement as to the steps taken to utilize small business and minority owned businesses shall be submitted to the RHS with the recommendation of award. The executed contracts must be reviewed and approved by the RHS before the Notice to Proceed is issued. Contracts must contain evidence of owner's attorney approval. Two copies of the executed contracts will be retained by the RHS for our records. Changes in the contract and change orders to the contract will require prior approval by the RHS. The resident inspectors resume' must be submitted to RHS prior to bid concurrence, for review and approval. Engineer's recommendation of project acceptance, owner's acceptance, as -built drawings with Operation and Maintenance Manual, date of substantial completion, and the final Form SF-271, "Outlay Report and Request for Reimbursement for Construction Programs", will be submitted to RHS not later than 90 days after the final advance for payment for construction has been made. Prior to the beginning of construction, the applicant will schedule a preconstruction conference where the architect will review the planned construction with the contractors), applicant, resident inspector, applicants attorney, RHS representative, and any other interested parties. Verification must be provided which will indicate adequate and valid right-of-way for the construction, operation, and maintenance of the facility have been acquired. This must be done prior to the invitation for bids. Form FmHA 442-21, "Rights -of -Way Certificate", and Form FmHA 442-22, "Opinion of Counsel Relative to Rights -of -Way", will be used for the verification. A map should be included. The applicant will not advertise for bids or make arrangements for interim financing until after RHS has determined that this loan, in fact, can be closed. This determination can only be made when the terms of this Letter of Conditions have been met by you. You should avoid making commitments to contractors or other lenders at this time. Page 7 August 12, 1996 Attachment "A" Your bond counsel will provide the RHS District Office Nvith two draft copies of the bond ordinances and loan resolutions, the form of the bond instrument, and other draft bond transcript documents deemed necessary by counsel. We will send a bond maturity schedule to your bond attorney. The City of Port Orchard should contact and advise the bond counsel to prepare drafts of the bond documents as soon as possible. Applicant will cant' suitable Workmen's Compensation Insurance on its employees. Applicants must comply with Lead Based Paints Poisoning and Prevention Act, and National Consumer Health Information and Health Promotion Act of 1976 with reference to specifications for paints used in construction. We have verified that your accounting system, as now established, meets RHS requirements. It will be necessary for the Treasurer to establish separate identifiable fund accounts for: (1) debt service account and (2) a reserve account, as required herein. Quarterly and annual management reports will be submitted to RHS as outlined in Section 1942.17 of FmHA Instruction 1942-A. Your annual budget will be submitted to the. RHS for review. Forms and fiu-ther instructions will be provided at loan closing. Annual/biennium audit examinations are required. An Audit will be required in any year in which federal funds in excess of $25,000 are received. Interim loan funds are considered federal funds since they are backed by a federal loan. The Audit must conform to OMB Circular A-128 for local governments and Indian Tribes and OMB circular A-133 for non-profit organizations. Additional audit guidance will be provided by RHS District Staff. Page 8 August 12, 1996 Attachment "A" MEASURES TO AVOID OR MITIGATE ADVERSE ENVIRONMENTAL UM PACTS As stated in the Letter of Conditions, these measures are as follows: 1. Pavement restoration will be required per plans and specifications if any improvements are made within roads/streets or said right of ways. 2. Restore disturbed vegetation or replace with natural vegetation following construction. Design landscaping to meet Washington State Department of Fish and Wildlife backyard landscaping plan. 3. A specification for dust and noise control during construction. Equipment shall not be operated without proper muffler or other noise suppressors as appropriate for the type of equipment involved. d. After completion of construction, there will be no adverse environmental impacts to mitigate. During construction, working hours will be during daylight hours. Pipe trenching sections will be completed at the end of each working day so as not to leave any night driving hazards. Public roadways will be swept as required so as to minimize excavation material or driving surfaces. Fiaggers will control traffic on public roadways to prevent vehicle accidents as required by Kitsap County. The Engineer will be empowered to either shut down construction or to demand corrective action when any construction practices unduly endangers the public or the environment. 5. Soils Report for hazardous waste has not been received. However, due to the existing structures being an American Legion Hall and a garage the client and RD anticipate one or two old oil fuel drums (residential size) and some soil contamination. Actual testing will not be done until buildings have been removed Actual demolition is planned after Ady 22nd 1996, and will take 30-45 days. At that time certified professionals will be hired to conduct such studies and report their findings to the City of Port Orchard and to RD. At that time measures to remove any hazardous material and/or soils will be made known. No construction will be done with RD financing until all hazardous materials/soils have been removed and a professional has certified that the site has been decontaminated acceptably for the intended new use. Page 9 August 12, 1996 Attachment "A" If all conditions set forth in this letter are not met within 30 days from the date hereof, Rural Housing Service reserves the right to discontinue the processing of the application. In addition, it is expected that project construction will start within six months from the date of loan approval in order for RHS to retain the obligation. Sincerely, DONALD D. WAGONER Rural Development Specialist Attachments cc: State Director Community Development Manager, Port Orchard Office of General Counsel, Portland, OR National Office Page 10 August 12, 1996 Attachment "B" PROSPECT STREET/BANK STREET LEGAL DESCRIPTION Those portions of Prospect Street right of way and Bank Street right of way according to S.M. Steven's Town Plat of Sidney recorded in volume 1 of Plats, page 1, records of the Auditor of Kitsap County, Washington described as follows: BEGINNING at the Southeast corner of Lot 1, Block 8, of said S.M. Steven's Town Plat of Sidney; thence North 01*31'58" East along the Westerly right of way margin of Prospect Street as shown on Survey recorded in volume 45 of Surveys, page 87 a distance of 239.42 feet to the Northeast corner of Lot 4, Block 8 of said S.M. Steven's Town Plat of Sidney; thence North 88*30'25" West along the southerly right of way margin of Bank Street 119.41 feet to the Northwest corner of said Lot 4, Block 8; thence North 01*40'27" East, 16.00 feet; thence South 88*30'25" East 137.37 feet; thence South 01*31158" West 255.50 feet; thence North 88*15'42" West 18.00 feet to the Point of Beginning; Situated in Section 26, Township 24 North, Range 1 East, W.M., City of Port Orchard, Kitsap County, Washington; This description contains right of way previously vacated by the City of Port Orchard under Ordinance Number 1002, dated February 14, 1977.