BOARD OF COMMISSIONERS REGULAR BUSINESS MEETING A G E N D A
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1 8850 SW State Hwy 3, Bremerton, WA BOARD OF COMMISSIONERS REGULAR BUSINESS MEETING A G E N D A November 28, 2017 Bill Mahan Conference Room 6:00 PM Port Administration Offices Bremerton Nat l Airport Terminal Bldg 8850 SW State Hwy 3, Bremerton Call to Order Pledge of Allegiance Approval of Agenda Consent Items All matters listed under Consent Items have been distributed to each member of the Commission for reading and study, are considered to be routine, and will be enacted by one motion of the Commission with no separate discussion. If separate discussion is desired, that item may be removed from the Consent Items and placed under Action Items by request. A. Minutes of the regular business meeting and executive session of November 14, B. Payment of checks # through # and #76837 through #76841 and #76843 through #76907 from the General Fund for $179,861.66; #76842 through #76842 from the Construction Fund for $83, and the payment of payroll taxes for $18, Citizen Comments: Open to the public for comment. Speakers are asked to keep their comments to less than 3 minutes. A Commissioner may request to waive the 3 minute time limit. Please feel free to submit further comments in writing to the Clerk of the Board. Action Items 1. Final Budget for Calendar Year Budget Presentation 1.2 Public Hearing 1.3 Action Items a. Resolution providing for a regular property tax levy and all allowable levies for calendar year b. Resolution providing a limit factor for the regular levy for the 2016 calendar year to determine future years levies and to enable the Port to bank excess levy capacity. c. Resolution adopting the final budget for calendar year d. Resolution filing the final budget and submitting request for tax levies for calendar year 2018 with the Clerk of the Board of County Commissioners.
2 Agenda for November 28, 2017 Page 2 Action Items cont d 2. Terminal Building Roof Replacement Project Final Acceptance with Bates Roofing, LLC 3. Purchase and Sale Agreement with Peter C. DeGroot for the purchase of acres of land adjacent to Olympic View Industrial Park New Business Staff Reports Commission Reports Executive Session (if necessary) Adjournment Regular business and other meetings that may be attended by members of the Board Date Time Meeting 11/28 12:30 pm *Kitsap Aerospace & Defense Alliance Steering Committee 11/28 6 pm *Commission Regular Meeting Bill Mahan Conference Rm 12/5 10:15 am Kitsap Regional Coordinating Council (KRCC) Executive Board 12/6 1 pm Puget Sound Regional Council (PSRC) Economic Development District 12/7 9 am PSRC Operations Committee 12/7 10 am PSRC Executive Board 12/7 1 pm KRCC TransPol Committee 12/12 6 pm *Commission Regular Meeting Bill Mahan Conference Rm Meetings are subject to change or cancellation *Denotes events in which two (2) or more Commissioners may attend ** The Commission may add and take action on other items not listed on the Agenda **
3 8850 SW State Hwy 3, Bremerton, WA BOARD OF COMMISSIONERS REGULAR BUSINESS MEETING M I N U T E S November 14, 2017 Bill Mahan Conference Room 6:00 PM Port Administration Offices Bremerton Nat l Airport Terminal Bldg 8850 SW State Hwy 3, Bremerton Draft Call to Order President Strakeljahn called the meeting to order at 6:00 p.m. and led the Pledge of Allegiance. Commissioners and Staff Present Commissioners Staff Members Axel Strakeljahn Jim Rothlin Tim Mensonides Larry Stokes Fred Salisbury Ginger Waye Cary Bozeman Sherman Hu Jim Ryan, Atty Arne Bakker Approval of Agenda It was moved by BOZEMAN, seconded by STOKES to: Approve the Agenda as presented. MOTION CARRIES, 3-0 Consent Items A. Minutes of the regular business meeting and executive session of October 24, B. Payment of checks # through # and #76751 through #76754 and #76763 through #76836 from the General Fund for $149,494.29; #76755 through #76762 from the Construction Fund for $44, and the payment of payroll taxes for $16, It was moved by STOKES, seconded by BOZEMAN to: Approve the Consent Items as presented. MOTION CARRIES, 3-0
4 Work Study Session Preliminary Budget Chief Financial Officer Sherman Hu presented the final 2018 preliminary budget describing the modifications from the draft 2018 budget that were presented at the October 24, 2017 commission meeting. The key changes to the capital projects were presented by Chief Operations Officer Fred Salisbury and discussed with the Board. It was noted by CFO Hu that the 2018 major focus is on the capital budget with a $3.6M increase over 2017; there is a slight decrease in the operations and maintenance budget. There was further discussion on the expectation for construction of a new building in the industrial park in The 2018 Preliminary Budget will be available to the public on the Port s website and in the Port offices beginning tomorrow, November 15. Citizen Comments Bob Perkins, Bremerton (Commissioner District 3 Candidate) Congratulated Commissioner Strakeljahn on his election to a second term and discussed his intent to remain involved in the Port as a voice for Seabeck, to promote the industrial park, and as an advocate for youth mentorship for the airport and marinas. He expressed his disappointment that the Port was not represented at the Olympic College internship/volunteer fair. He closed with three words I ll be back. Bill Mahan, former Port Commissioner Congratulated Commissioner Strakeljahn on his victory. Discussed in depth the Bremerton Marina Park and the commission s intent for the breakwater to be a park for the public to enjoy stating it was never designed for permanent moorage. Encouraged the current commission to remember what the former commission wanted to have happen on the breakwater when you make decisions related to moorage. Draft Christian Lint, Captain and tenant on the Bremerton breakwater Spoke to his position that permanent moorage along the breakwater does not interfere with public use and the moorage leases should be increased as they are income generating. He discussed mooring during high winds stating his boats are weathering beautifully. He thinks anyone suggesting those vessels do anything but provide a tremendous resource to the community is not seeing the big picture. Regular Business Meeting Minutes November 14, 2017 Page 2 of 4
5 Action Items 1. Engineering Services Contract with Art Anderson Associates for Emergency Repairs to Port Orchard and Bremerton Marinas; Water Street Boat Ramp; and Harper Pier. Presented by Fred Salisbury, Chief Operations Officer It was moved by BOZEMAN, seconded by STOKES to: Approve the engineering services contract with Art Anderson Associates in the amount of $95,292 for engineering support for repairs at Bremerton & Port Orchard Marinas, Harper Pier, and Water Street Boat Ramp and authorize the CEO to execute the contract. Following discussion; MOTION CARRIES, Engineering Services Contract with Soundwest Engineering Associates for Puget Sound Industrial Center Bremerton Site Development Presented by Fred Salisbury, Chief Operations Officer It was moved by STOKES, seconded by BOZEMAN to: Approve the engineering services contract with Soundwest Engineering Associates in the amount of $208,620 for PSIC-Bremerton Site Development and authorize the CEO to execute the contract. Following discussion; MOTION CARRIES, 3-0 New Business - None Staff Reports Jim Rothlin, Chief Executive Officer Reported on the exit conference for the recent state audit which included a accountability audit and a 2016 financial statements audit. Reported on the recent Kitsap Regional Coordinating Council legislative reception in which Commissioner Strakeljahn spoke as a member of the West Sound Alliance. Washington Public Ports Association s annual meeting begins tomorrow in Seattle and will be held through Friday. Commission Reports Draft Commissioner Bozeman Thought the Amazon proposal was well-done and thanked Arne Bakker, Director of Business Development, and staff for getting the proposal out on time. Regular Business Meeting Minutes November 14, 2017 Page 3 of 4
6 Commissioner Strakeljahn Attended the state audit exit conference. Discussed the value in meeting with legislators during the legislative reception in order to have one-on-one discussions. Will attend WPPA s annual meeting. Executive Session President Strakeljahn recessed the meeting into executive session at 6:50 p.m. for approximately 20 minutes regarding: real estate [RCW (1)(b)]. At 7:10 p.m. the regular meeting was reconvened. Adjournment There being no further business before the Board, the meeting was adjourned at 7:10 p.m. Submitted, Approved, Jim Rothlin Cary Bozeman Chief Executive Officer Commission Secretary November 22, 2017 November 28, 2017 Draft Regular Business Meeting Minutes November 14, 2017 Page 4 of 4
7 8850 SW State Hwy 3, Bremerton, WA BOARD OF COMMISSIONERS EXECUTIVE SESSION M I N U T E S November 14, 2017 CEO Office 6:50 PM Port Administration Offices Bremerton Nat l Airport Terminal Bldg 8850 SW State Hwy 3, Bremerton Call to Order President Strakeljahn called the executive session to order at 6:50 p.m., November 14, Commissioners and Staff Present Commissioners Axel Strakeljahn Larry Stokes Cary Bozeman Staff Members Jim Rothlin Fred Salisbury Jim Ryan, Atty Item #1: Real estate issues were discussed [RCW (1)(b)]. With no further business to come before the Board, the meeting was adjourned into regular session at 7:10 p.m. Submitted, Draft Approved, Jim Rothlin Cary Bozeman Chief Executive Officer Commission Secretary November 22, 2017 November 28, 2017
8 AGENDA SUMMARY Agenda Item No: Action Item #1 Subject: Exhibits: Prepared By: 2018 Final Budget Adoption 2018 Final Budget Resolutions ; ; ; and Sherman Hu, Chief Financial Officer Meeting Date: November 28, 2017 Summary: The 2 nd 2018 preliminary budget was presented on November 14, The Public Hearing is being held during the November 28, 2017 meeting. The Port of Bremerton's 2018 Final Budget as presented to you today is $11,818,540. The final budget documents and all related resolutions are presented herein for adoption as follows: 2018 Final Budget. Resolution : General tax levy for 2018 with no tax increase Resolution : Providing a limit factor for the regular levy for the 2018 calendar year to determine future years levies and to enable the Port of Bremerton to bank excess levy capacity. This resolution works together with Resolution and is important to the Port in preserving its ability to bank the levy capacity. It is not known what the future holds or what projects may come before future Port Commissions. The Port has banked its previous levy capacity and should preserve the same ability to bank the excess capacity in Resolution : Providing for acceptance, approval and adoption of the Final Budget for Calendar Year Resolution : Filing the Final Budget and submitting a request for tax levies for the 2018 calendar year with the Clerk of the Board of County Commissioners and the Kitsap County Tax Assessor's Office. This resolution also includes the official Levy Certification signed by the Chief Financial Officer of the Port. Fiscal Impact: N/A Recommendation: Adopt the 2018 Final Budget and approve all related resolutions as presented. J:\Public_Forms\Agenda Materials\ \Final Budget\Final_Budget_Agenda_Summary.docx
9 Motions for Consideration: a. Move to approve Resolution with no tax increase in the general tax levy. b. Move to approve Resolution providing a limit factor for the regular levy for the 2018 calendar year to determine future years levies and to enable the Port to bank excess levy capacity. c. Move to approve Resolution approving and adopting the Final 2018 Budget. d. Move to approve Resolution filing the final 2018 budget documents and submitting request for tax levies in the amounts indicated with the County Clerk of the Board of County Commissioners and the Kitsap County Assessor's Office.
10 PORT OF BREMERTON KITSAP COUNTY, WASHINGTON RESOLUTION NO DATED: November 28, 2017 A RESOLUTION of the Board of Commissioners, Port of Bremerton, providing for a 0% increase in the total regular property tax levy excluding any amount resulting from the addition of new construction and improvements to property, any increase in state-owned property and all allowable levies, for calendar year WHEREAS, the Board of Commissioners, Port of Bremerton, has properly given notice of the public hearing held on November 28, 2017 to consider the Port of Bremerton's current expense budget for the calendar year 2018, pursuant to RCW , , and ; and WHEREAS, the Board of Commissioners, Port of Bremerton, after hearing, and after duly considering all relevant evidence and testimony presented, has determined that the Port of Bremerton does not require the 1% increase in property tax revenue from the previous year, excluding the increase resulting from the addition of new construction and improvements to property, newly constructed wind turbines, annexation, any increases in the values of state-assessed property, state-assessed utilities, refunds, and all allowable levies, in order to discharge the expected expenses and obligations of the Port of Bremerton and in its best interest; and WHEREAS, the population of this district is more than 10,000, and WHEREAS the Board of Commissioners, Port of Bremerton, has determined that it is in the best interest of the Port of Bremerton and not necessary to meet the expenses and obligations in 2018 while still maintaining all future levy capabilities, for the property tax revenue not to be increased by 1% in NOW, THEREFORE, BE IT RESOLVED, by the Board of Commissioners, Port of Bremerton, that a zero percent 0.0% increase $-0- in the total property tax levy from the previous year $3,613,961is hereby authorized. The 0.0% increase is exclusive of additional revenue resulting from new construction, improvements to property, any increase in the value of state assessed property, any annexations that have occurred and refunds made. ADOPTED by the Board of Commissioners of the Port of Bremerton at the regular public meeting thereof held this 28 th day of November, 2017 and duly authenticated in open session by the signatures of the Commissioners voting in favor thereof and the Seal of the Commission. Commission President ATTEST: Commission Secretary Commission Vice President (SEAL)
11 PORT OF BREMERTON KITSAP COUNTY, WASHINGTON RESOLUTION NO DATED: November 28, 2017 A RESOLUTION of the Board of Commissioners, Port of Bremerton, providing a limit factor for the regular levy for the 2018 calendar year to determine future years levies and to enable the Port of Bremerton to bank excess levy capacity. WHEREAS, the Board of Commissioners, Port of Bremerton, has met and considered its budget for the calendar year 2018; and WHEREAS, the Board of Commissioners, Port of Bremerton, in the course of considering the budget for 2018, has reviewed all sources of revenue and examined all anticipated expenses and obligations; and WHEREAS, the Board of Commissioners of the Port of Bremerton Taxing District, has determined that due to future committed obligations in the Teamsters Local Union 589 Agreement with respect to future wage increases and medical and other benefit levels, and in consideration of future capital and infrastructure improvements, finds that there is a substantial need to set the levy limit at 101% in the event this levy capacity is needed in the future years. NOW, THEREFORE BE IT RESOLVED by the Board of Commissioners, Port of Bremerton that the limit factor for the regular levy for the calendar year 2018 be set at 101% in the event this levy capacity is needed in future years. ADOPTED by the Board of Commissioners of the Port of Bremerton at the regular public meeting thereof held this 28 th day of November, 2017 and duly authenticated in open session by the signatures of the Commissioners voting in favor thereof and the Seal of the Commission. Commission President ATTEST: Commission Secretary Commission Vice President (SEAL)
12 PORT OF BREMERTON KITSAP COUNTY, WASHINGTON RESOLUTION NO DATED: November 28, 2017 A RESOLUTION of the Board of Commissioners, Port of Bremerton, providing for acceptance, approval and adoption of the Final Budget for the Calendar Year WHEREAS, a preliminary 2018 budget was prepared and analyzed on November 14, 2017, and WHEREAS, public notices were published on November 15 and November 22, 2017, in the newspaper of general circulation in the Port District proclaiming the availability of the preliminary budget to taxpayers at the Port office and announcing the public hearing for November 28, 2017, all in accordance with RCW and , and WHEREAS, a public hearing was held on the 28 th day of November, 2017 at 6:00 p.m. in the Bill Mahan Conference Room, 8850 SW State Hwy 3, Bremerton, WA after the above-stated due and proper notices were published in the daily newspaper of general circulation in the Port District and the Commission heard from all persons desiring to be heard on the matter of the final budget all in accordance with RCW and NOW, THEREFORE BE IT RESOLVED by the Board of Commissioners, Port of Bremerton, that: The Final Budget for calendar year 2018, fixed at fund levels as listed below and appended hereto as part of this Resolution is accepted, approved and adopted. Airport $1,264,440 Industrial Park 991,917 Port Orchard Marina 1,966,537 Bremerton Marina 1,360,739 Minor Marinas 87,367 General & Administrative 449,789 Capital Project Airport 1,493,155 Capital Project Industrial Parks 3,368,500 Capital Project Port Orchard Marina 354,095 Capital Project Bremerton Marina 119,100 Capital Project Minor Marinas 5,800 Capital Project General & Administrative 357,101 TOTAL BUDGET $11,818,540 ADOPTED by the Board of Commissioners of the Port of Bremerton at the regular public meeting thereof held this 28 th day of November, 2017 and duly authenticated in open session by the signatures of the Commissioners voting in favor thereof and the Seal of the Commission. ATTEST: Commission Secretary Commission President Commission Vice-President
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33 PORT OF BREMERTON KITSAP COUNTY, WASHINGTON RESOLUTION NO DATED: November 28, 2017 A RESOLUTION of the Board of Commissioners, Port of Bremerton, filing the final budget and submitting a request for tax levies for calendar year 2018 with the Clerk of the Board of County Commissioners. WHEREAS, the Board of Commissioners, Port of Bremerton, Kitsap County, by Resolution dated November 28, 2017 approved and adopted the Final Budget for Calendar Year 2018 in the amount of $11,852,540 in accordance with RCW , , and NOW, THEREFORE BE IT RESOLVED by the Board of Commissioners, Port of Bremerton, in accordance with RCW , that: 1. A copy of the Final Budget of the Port of Bremerton for Calendar Year 2018, as approved by Resolution be filed with the Clerk of the Board of County Commissioners. 2. As required under Referendum 47, Section 209, Resolution is hereby submitted (copy attached) to the Board of County Commissioners to provide for levies against taxable property located within Kitsap County to raise funds in the amount indicated in the Final Budget as follows, plus new construction and improvements to property, newly constructed wind turbines, annexation, any increases in the values of state-assessed property, state-assessed utilities, refunds, and all allowable levies: A. General Purpose Levy $3,613,961 Plus: New Construction 44,017 Refunds 25,663 Estimated Utilities 1,366 3,685,007 B. Special Tax (General Obligation Indebtedness) Levy 326,000 ADOPTED by the Board of Commissioners of the Port of Bremerton at the regular public meeting thereof held this 28 th day of November, 2017 and duly authenticated in open session by the signatures of the Commissioners voting in favor thereof and the Seal of the Commission. Commission President Commission Vice President ATTEST: (SEAL) Commission Secretary
34 LEVY CERTIFICATION In accordance with RCW , I, Sherman Hu, Chief Financial Officer, for the Port of Bremerton, do hereby certify to the Kitsap County legislative authority that the Commissioners of said district requests that the following levy amounts be collected in 2018 as provided in the district s budget, which was adopted on November 28, 2017, following a public hearing held on November 28, Regular Levy: $3,613,961 Plus: New Construction 44,017 Refunds 25,663 Utilities 1,366 Total Regular Levy $3,685,007 Excess Levy: $ 326,000 Signature: Date:
35 AGENDA SUMMARY Agenda Item No: Action Item #2 Subject: Admin Roof Replacement Final Acceptance Exhibits: None Prepared By: Fred Salisbury Meeting Date: November 28, 2017 Summary: On June 13, 2017 the Commission awarded the Admin Building Roof Replacement project to Bates Roofing LLC in the amount of $74,377 (incl. WSST). On November 3, 2017 a final acceptance inspection was conducted by the Port, Contractor, and Roofing Product Warranty representatives. There was one change order in the amount of $9, (incl. WSST) which was for installation modifications (additional flashing, TPO material, delivery, labor) around the new HVAC heating systems which was not identified in the original scope documents resulting in a revised contract amount of $83, Fiscal Impact: The project was completed within the budgeted amount. Recommendation: Accept as final the construction contract with Bates Roofing LLC in the amount of $83, The Port will release retainage once all applicable documentation is received. Motion for Consideration: Move to accept as final the Admin Roof Replacement construction contract with Bates Roofing LLC in the amount of $83, J:\Public_Forms\Agenda Materials\ \Final Acpt Terminal Roof - Bates\Agenda Summary - Admin Roof.Bates.docx
36 AGENDA SUMMARY Agenda Item No: Action Item #3 Subject: Exhibits: Prepared By: Real Estate Purchase and Sale Agreement with Peter DeGroot for the purchase of acres adjacent to the southwest corner of the Olympic View Industrial Park (OVIP) Property Exhibit Attached Jim Rothlin Meeting Date: November 28, 2017 Summary: In 2012 the Port approached Mr. Peter DeGroot and expressed an interest in acquiring his vacant timber property. The parties could not come to terms with the sale of the property because of differences regarding the acquisition price. In April of this year, Mr. DeGroot contacted the Port to determine whether the Port was still interested in the property. The location of the property is adjacent to Highway 3 and to other Port properties, which makes the site desirable for future Port development. The Port has come to terms with the seller, where the timber is to be gifted to the Port and the property will be sold for the appraised value. Mr. DeGroot would provide the Port a Timber Deed and then a Statutory Warranty Deed. The Port would acknowledge the value of the gift as being the value set forth in the timber cruise. A Timber Cruise and appraisal were provided by Mr. DeGroot. The timber cruise was reviewed for accuracy by the Port s forest consultant. The value of the timber exceeds the assessed value of the property. Significant elements of the agreement are as follows: Appraised Value: $136,948 Standing Timber (Stumpage) Value: $164,793 Purchase price: $136,948 The Port Attorney has been instrumental in the preparation of the agreement and approves its form. Fiscal Impact: The cost of the land purchase will come from Port reserves which will later be supplemented once the Port decides to harvest the timber. Recommendation: Approve the Purchase and Sale Agreement with Peter DeGroot for the purchase of acres and authorize the Chief Executive Officer (CEO) to execute the agreements. Motion for Consideration: Move to approve the Purchase and Sale Agreement with Peter C. DeGroot and authorize the CEO to execute the agreements. J:\Public_Forms\Agenda Materials\ \DeGroot Property P&S\DeGroot Property Purchase.docx
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