HomeMy WebLinkAbout11/13/02 AGENDACITY COUNCIL MEETING AGENDA
NOVEMBER 13, 2002
FILE
239 4th Street · Bremerton, WA 98337 · Phone (360) 478-5280 · Fax (360) 478-5~51
PRE-COUNCIL STUDY SESSION~ 5:00 - 5:30 P.M.
A. General Council Business
CALL TO ORDER: 5:30 P.M.
A. Pledge of Allegiance
B. Invocation
3. CONSENT AGENDA
A. Minutes of Meeting - October 23, 2002 (#AB02-215)
4. CLAIMS/CHECK REGISTER~
MEMBER REPORT~
COUNCIL
MAYOR'S REPORT
PUBLIC RECOGNITION - Comments limited to 3-minutes
NEW BUSINESS '
&
B. Approval of the Design & Build Construction Contract between the City of Bremert0n
and OPUS Northwest LLC (#AB02-217)
C. Quitclaim Deed between the U.S.A. and the Cityof Bremerton for the acquisition of
Eastpark (#AB02-218)
10.
PUBLIC HEARINGS - RESOLUTIONS AND ORDINANCES
A. Ordinance No. 4826 [Second Reading] Lewing Property Taxes for Collection in 2003
(#AB02-212)
B. Ordinance No. 4827 [Second Reading] Setting Rates and Fees for Water Fund 401,
Wastewater Fund 451, and Stormwater Fund 481 for 2003 (#AB02-213)
C. Ordinance [First Reading] repealing the Downtown Waterfront Urban Renewal Plan;
and amending the Zoning Code establishing the Downtown District (#AB02-219)
D. Ordinance [First Reading] amending the Shoreline Master Program relating to
Downtown Development Regulations (#AB02-220)
Ordinance [First Reading] reaffirming Designated Blighted Areas; re-designating the
Project Area; and creating a new Community Renewal Plan for the Project Area
(#AB02-221 )
Ordinance [First Reading] authorizing the Issue of General Obligation Bonds to
Finance the Public Safety Facilities (#AB02-222)
Resolution No. 2878, authorizing the Use of Glass Cullet (#AB02-223)
ADJOURNMENT OF MEETING
E-mail: citycouncil@ci.bremerton.wa.us · Web: www. ci.bremerton.wa.us
CITY COUNCIL MEETING
NOVEMBER 13, 2002
SPEAKERS LIS T
If you wish to make an announcement, inform the Council of an issue, or ask a general question... Please
provide information below so staff will be able to contact you.
Thank you.
NAME
ADDRESS/TEI.FPHONE
TOPIC
o
e
City of Brernerton
PARKS & RECREATION
Pat Westhoff 11-1.02
GOLD MOUNTAIN GOLF COMPLEX
CASCADE COURSE
REVENUE AND PLAYER COMPARISON REPORT
2O0O
Month Green Fees # Players
JANUARY $63,318.50 1,488
FEBRUARY $54,338.00 2,658
MARCH $67,981.00 3,671
AI=RIL $114,922.60 5,894
MAY $118,408.30 6,4t0
JUNE $150,137.40 7,005
JULY $171,128.00 8,141
AUGUST $134,617.50 7,793
SEPTEMBER $112,372.00 5,780
OCTOBER $50,945.50 3,539
NOVEMBER $28,716.10 1,993
DECEMBER $41,027.00 1,700
Total Y-T-D $1,113,911.90 56,072
2001
Green Fees # Players
$90,355.90 2,271
$29,227.50 1,508
$72,020.50 3,795
$96,090.00 4,904
$140,885.00 6,685
$134,429.50 6,414
$177,2t 1.00 8,120
$138,112.50 7,417
$117,667.00 5,872
$46,922.50 3,506
$28,483.00 1,920
$47,000.00 1,424
$1,1 23,404.40 53,836
2O02
Green Fees # Players
$56,865.00 1,343
$41,737.00 2,370
$56,415.00 2,676
$95,690.00 4,623
$1 34,609.00 6,383
$161,313.00 7,068
$172,120.00 7,881
$161,175.00 8,013
$128,519.00 6,t81
$57,477.00 4,051
$1,067,920.00 50,589
TOTAL FROM OLYMPIC COURSE
2002 GRAND TOTALS FOR BOTH COURSES
$1,256,491.50 43,642
$2,324,411.50 94,231
CASCADE REVENUE IS UP FROM 2001 YEAR TO DATE
CASCADE PLAYERS ARE UP FROM 2001 YEAR TO DATE
$19,949.00
97
CASCADE COURSE HISTORICAL DA TA
YEAR GREEN FEES PLAYERS YEAR
1999 $1,070,329.01 57,953
1998 $1,102,094.90 61,653 1991
1997 $1,064,284.00 60,235 1990
1996 $1,071,501.00 56,767 1989
1995 $1,111,544.00 74,270 1988
1994 $1,063,896.00 74,497 1987
t993 $945,687.00 67,978 1986
1992 $880,322.00 71,308 1985
GREEN FEES
$768,715.00
$648,381.50
$560,794.25
$488,946.50
$456,202.00
$369,550.00
$333,969.00
PLAYERS
94,810
59,811
59,792
58,046
53,051
45,021
47,676
City of Brsmerton
PARKS & RECREATION
Pat Westhoff 11.1-02
GOLD MOUNTAIN GOLF COMPLEX
OLYMPIC COURSE
REVENUE AND PLAYER COMPARISON REPORT
2000
Month Green Fee~ # Players
JANUARY $26,527.75 1,177
FEBRUARY $48,384.50 2,528
MARCH $84,751.60 2,998
APRIL $130,695.60 4,889
MAY $164,630.90 5,909
JUNE $t80,594.90 6,327
JULY $213,457.00 7,179
AUGUST $203,688.50 7,022
SEPTEMBER $1 64,685.50 5,212
OCTOBER $80,291.80 3,256
NOVEMBER $37,138.70 1,683
DECEMBER $35,715.50 1,418
Total Y-T-D $1,359,562.25 49,498
2001
Green Fees
$37,388.50
$34,328.00
$77,511.00
$111 ~130.00
$161 109.00
$t 73 735.00
$206 430.00
$190 716.00
$151 230.00
$44 864.00
$33,507.OO
$28 049.00
$1,249,998.50
# Players
1,502
1,475
2,815
4,075
5,983
6,647
7,117
6,529
5,230
2,239
1,553
1,447
45,012
2O02
Green Fees # Playem
$21,592.00 1,020
$38,786.00 1,951
$63,554.00 2,412
$92,803.00 3,365
$169,986.00 5,321
$193,0t 2.00 6,274
$217,555.00 7,328
$224,281.00 7,327
$167,183.50 5,262
$77,739.00 3,382
$1,256,491.50 43,642
REVENUE IS UP FROM THE 2001 YEAR TO DATE
PLAYERS ARE UP FROM 2001 YEAR TO DATE
$68,039.00
330
OLYMPIC COUI;~E OPENED
OLYMPIC COURSE HISTORY
.YEAR REVENUE PLAYERS
~998 $207At8.00 11,t97
1997 $1,2t8,899.00 64,580
1998 $1,398,413.00 49,756
1999 $1,342,498.t2 49,296
II.
III.
IV.
7:30 A.M., OCTOBER 3, 2002
GOLD MOUNTAIN GOLF CLUB
AGENDA
INTRODUCTIONS
GAME BREAKER STRATEGY
· How to attract a Leading Edge
Company to Bremerton.
MEET THE NEW BREMERTON
· An event to educate King County Et
Pierce County investors about the
opportunities in Bremerton.
ROUND TABLE DIALOGUE · Any issue, any topic
· Speak out
· Share
JIM ELLICK
CARY BOZEMAN
a~,~,,,,~ Cary Bozernan
TEAM BREa'v~RTON
2.
3.
4.
5.
6.
7.
8.
10.
11.
12.
13.
14.
15.
16.
17.
18.
19.
20.
21.
Bette Hyde, Superintendent, Bremerton Schools
Cheryl Kincer, Commissioner, Port of Bremerton
David Mitchell, President, Olympic College
Steve Anderson, Executive Director, NA VSEA/PSNS
Rick Smith, Chair, KPFD
Norm McLoughlin, Executive Director, KKCHA
Merrill Wallace, Executive Director, BHA
David Gitch, Harrison Hospital
Zoltan Szigethy, Executive Director, KREDC
Dick Hayes, Executive Director, Kitsap Transit Authority
Mike Connolly, KP. Administration, Olympic College/Bremer Trust
Linda Niebanck, President, KREDC
Mike Levi, Publisher/President, Bremerton SUN
Steve Rice, Owner, Rice Fergus Miller Architects
Eric Anderson, Owner, Art Anderson Associates
Gary Sexton, Director, Economic Development, City of Bremerton
Sherdl Huff Menees, Special Assistant to the Mayor, City of Bremerton
Chris Hugo, Director, Community Development, City of Bremerton
Jim Ellick, Business Consultant
Bryan McConaughy, Staff, Congressman Dicks
Elizabeth Wilson, Port Blakely
*~,yo, Cary Bozeman
PUBLIC SAFETY BOND ISSUE
12.979 Million Dollars
DRAFT
Administrative Project List
10.
11.
12.
13.
Negotiate purchase of the US Bank Building.
Put out Request for Proposal for architectural design of the Public Safety
Building.
Select architects for police and court building. Negotiate design contracts.
Coordinate design meetings with police, courts and architects.
Put out bid proposal for construction contact.
Select construction company.
Coordinate the remodel of the Special Operations Group building.
Negotiate the purchase land for new fire station.
Issue Request for Proposal for design and architects for new fire station.
Request bid proposal for construction contract and award contract.
Support the purchase of four new fire trucks and $800,000 in new equipment.
Develop budget and cash flow projections.
Other projects as required.
PUBLIC SAFETY BOND ISSUE
PROJECT SUMMARY
FACT SHEET
Police Department
Provide new Public Safety Building to house the Police Department
and Mtmicipal Court
-Purchase of US Bank Building
-Remodel of building
-Equipment for building
1,200,000
3,900,000
500,000
Bo
Purchase of 5 new patrol cars. Increase the City's current fleet of patrol cars.
-Purchase and equipment of 5 cars 250,000
C. Special Operations Facility - remodel an existing City building to house 250,000
the Police Dept. undercover Special Operations Group.
Fire Department
Replace 70 year old downtown Fire Station #1
-Construction of new station
3,800,000
Purchase of three new fire trucks; one for each station to replace 20 year
old trucks. ($450,000 each)
1,450,000
C. Purchase new ladder truck to replace the 30 year old ladder track
800,000
D. Upgrade Fire Department equipment
829,000
TOTAL BOND ISSUE
$12,979,000
Cost to Homeowner
If approved by the citizens of Bremerton, the $12.979 million public safety bond will be issued in 2003.
For the individual homeowner whose property is valued at $100,000, this equates to $4.90 per month in
2003 property taxes decreasing to $2.74 per month in 2027.
1. ~:
MINUTES OF MEETING -
AGENDA BILL
BREMERTON CITY COUNCIL
OCTOBER 23, 2002
2. CLEARANCES: (Comment on back if necessary)
FOR AGENDAOF: NOVEMBER 13, 2002
ORIGINATING DEPT: CITY COUNCIL
ORIGINATOR: CAROL ARENDS, PRESIDENT
DATE SUBMITTED: OCTOBER 31, 2002
3. EXHIBIT__S:
ENDORSEMENT
MAYOR:
INFORMATION ~'~
APPROVED FOR SUBMITTAL BY
COUI~CIL PRESIDENT:
4. SUMMARY STATEMENT AND REQUIREMENT FOR COUNCIL ACTION:
5. RECOMMENDATION:
7. NOTICE OF ACTION:
PULLED []]]] TABLED [--]
COUNCIL DIRECTIVE:
APPROVED
e
RESPONSIBLE OFFICIAL:
ENFORCEMENT OFFICIAL:
EXPIRATION DATE:
REVIEW DATE:
DISAPPROVED [~ AMENDED [--] DATE:
8. AGENDA BILL NO.:
!
9. IMPACT OF NON-PASSAGE:
10. IMP CT ON TAF IN BUDGETS FACILITIES E UIPMENT OR OTHER RESOUR ES:
11. RESEARCH SOURCES:
TAPES #1856 #1857
CITY COUNCIL MEETING MINUTES
October 23, 2002
The weekly meeting of the City Council of the City of Bremerton was called to order in the City COuncil
Chambers, 239 4th Street, Bremerton, Washington, Wednesday, October 23, 2002, at 5:30 P.M., with
Council President Carol Arends presiding. Council members present were Mike Short, Will Maupin,
Mike Shepherd, Ed Rollman, Daren Nygren, Cecil McConnell, and Wayne Olsen. Council Member Eric
Younger was absent. Also present were City Attorney Roger Lubovich; Deputy City Clerk Paula
Johnston; and Legislative Assistant Lori Smith.
The meeting opened with the Pledge of Allegiance led by Council Member Cecil McConnell, followed
by the invocation provided by former Council Member Al Colvin.
CONSENT AGENDA
A. Minutes of Meeting - October 9, 2002 (#AB02-194)
~0025 M/S/C/U (McConnell/Olsen) Move to approve Consent Agenda as presented.
CLAIMS/CHECK REGISTERS
Vouchers audited and certified by the auditing officer as required by RCW 42.24.080, and those
expense reimbursement claims certified as required by RCW 42.24.090 have been recorded on a listing
that had been made available to the Council.
#0055 MISIC/U (McConnell/Rollman) On October 23, 2002 the Council approved payment for Check
Numbers 275693; 275694; 275725 through 275873 in the amount of $427,806.74 on the Master Check
Register; and Regular Payroll for the period ending October 15, 2002 in the amount of $896,117.21.
COUNCIL MEMBER REPORTS
Daren Ny.qren announced the District 3 meeting scheduled October 26 has been cancelled; and invited
the public to the Manette Open House sponsored by the Business District on Friday, November 8.
Ed Rollman discussed his experience with being "flamingo'ed" as a fundraiser for the Bremerton High
School Senior Class of 2003 Grad Night. He also invited the public to the Trick-or-Treat event
downtown on Halloween night from 5:00 to 8:00 P.M.
Mike Shepherd held a neighborhood meeting to discuss resident's concerns with speeding vehicles;
and announced a number of upcoming Halloween events in the community.
Will Maupin discussed his attendance at the Teen Late Night program at the YMCA last Friday, and
was very impressed with the number of teens who were in attendance; and on Monday he attended the
Bremerton Housing Authority Board meeting where Chris Hugo discussed the Comprehensive Plan.
Carol Arends reported on her attendance at the Bremerton Area Chamber of Commerce Installation
Dinner last week, and tomorrow would be attending the Puget Sound Regional Council meeting in
Seattle.
MAYOR'S REPORT - There was no Mayor's Report tonight.
On behalf of the Mayor Council President Arends read a Proclamation to proclaim October 30, 2002
as "I/Veatherization Day" in the City of Bremerton, which was accepted by Mary Booher,
Weatherization Assistant Manager with Kitsap Community Resources.
Deputy City Clerk Paula Johnston read the following statement into the record:
The Public Employment Relations Commission, a Sate Agency, has held a legal proceeding in
which all parties were allowed to present evidence and argument. The Commission has found
TAPES #1856 & #1857
City Council Reg. Mtg. Minutes
October 23, 2002
Page 2 of 7
that we have committed unfair labor practices in violation of a State Collective Bargaining Law,
and has ordered us to post this Notice to our Employees:
WE WILL NOT interfere with, restrain or coerce employees in any manner in the free exercise of
their rights guaranteed by RCW 41.56.
WE WILL NOT discriminate against any employee in the free exercise of their rights guaranteed
by RCW 41.56.
WE WILL NOT assert any procedural defects, particularly contractual requirements regarding the
time period when a contractual grievance can be filed, in the event that John Bogen files a
grievance disputing the discipline enacted by the employer concerning his off-duty work for
Kitsap Transit in 2001.
DATED: October 22, 2002
PUBLIC RECOGNITION
Allen Shute asked the City what action they were taking to stop drug activity; when construction on the
Gateway Project would resume; and what would happen to the 7-11 store that was recently closed.
Ed Pietras announced the 20th Annual Spaghetti Festa to be held on Sunday, October 27th from 1:00 to
7:00 P.M. at the Knights of Columbus Hall located at the corner of Burwell and Montgomery to benefit
the Olympic Peninsula Kidney Center. Any more information may be obtained by calling 479-9210.
Don Larson announced that the Washington State Department of Transportation installed anti-litter
signs along Highway 304; and recommended including trees in new project areas.
Gene Sample¥ was pleased to provide a brief report on funding for the CSO Program which was
obtained by Congressman Norm Dicks and Senator Patty Murray.
Dick Boyd provided comments in support of the Skateboard Park.
8A - RE-APPOINTMENT OF NICK GARGUILE~ SR. DOUGLAS GRONEMAN, AND SUSAN BEL~. TO
THE PARKS & RECREATION COMMISSION; AND APPOINTMENT OF STEVE CORDA TO THF
PARKS & RECREATION COMMISSION (#AB02-'195): Jim Spencer, Parks & Recreation Director,
stated that three Parks & Recreation Board Commissioner' terms have expired. One Commissioner has
resigned. It is necessary to re-appoint those Commissioners whose terms have expired and appoint a
new Commissioner to fill the unexpired term of the Commissioner resignee. All three Commissioners
with expired terms wish to be re-appointed, and the Mayor recommends such action by the Council. The
Mayor also recommends Council action to appoint Steve Corda as a new Commissioner.
There were no comments from the public.
#0960 M/S/C/U (McConnell/Shepherd) Move to approve re-appointment of Position 2 Commissioner
Nick Garguile, Sr.; Position 4 Commissioner Douglas Groneman; and Position 7 Commissioner Susan
Bell to the Bremerton Parks & Recreation Commission.
#0975 M/SlClU (Nygren/McConnell) Move to approve appointment of Steve Corda to fill the unexpired
term for Position 1 on the Bremerton Parks & Recreation Commission.
8B - CONTRACT WITH WASHINGTON STATE DEPARTMENT OF COMMUNITY~ TRADE~ ~-
ECONOMIC DEVELOPMENT FOR BOARDWALK REPAIRS (#AB02-196): Jim Spencer, Parks &
Recreation Director, summarized that the City of Bremerton was fortunate to receive funding under t~he
Job Creation and Infrastructure Program, as contained in the 2003 Supplemental Capital Budget from
TAPES #1856 & #1857
City Council Reg. Mtg. Minutes
October 23, 2002
Page 3 of 7
the State of Washington Department of Community, Trade, and Economic Development. The purpose
of this contract is to allow for the appropriation of funds necessary to repair the corrosion to the steel
pilings that support Bremerton's over-water Boardwalk. The total appropriation is not to exceed
$495,750. The repairs are expected to last up to 30 years and the pilings would be inspected annually
at an estimated cost of $800-$1,000.
There were no comments from the public.
Mr, Shepherd asked if there was some form of warranty available regarding the range given for the
pilings to last is 15 to 30 years. Mr, Spencer answered that this issue would be addressed during the
contract phase of the project.
Mr. Olsen asked if the boardwalk would be closed during repairs. Mr, Spencer stated no.
#1195 M/S/C/U (Shepherd/Olsen) Move to authorize the Mayor to execute Capital Contract No. 02-
99400-012 with the Washington State Department of Community, Trade, and Economic Development
so that repair to the Boardwalk can proceed.
8C - PHASE [I DESIGN AGREEMENT MODIFICATION NO. I BETWEEN THE CITY OF
BREMERTON AND OPUS NORTHWEST, LLC (#AB02-197): Gary Sexton, Director of Economic
Development, pointed out that the project scope has not been altered and that this modification extends
the design development to completion.
There were no comments from the public.
Mr. Rollman asked if this agreement included design work on the conference center, parking garage,
and the plaza. Mr. Sexton responded that the agreement includes design on those features as well as
the open and surrounding areas.
Mr. Olsen asked if the purchase and sale agreement between the City and Opus would be signed by
November 15 and what that would entail. Mr. Sexton stated that there are two parts of the project that
will be addressed: the hotel and restaurant portions of the project. Also, Kitsap Transit at that time
would become owner of office building and retail space.
Mr. Short asked if the issue on square footage on port space use has been resolved. Mr. Sexton
answered that there is a limitation which includes not more than 3,400 square feet. The actual space
required by the port is still being decided due to cost issues.
#1425 M/S/C/U (Rollman/Olsen) Move to authorize the Mayor to sign the modification to the Phase I!
Design Agreement to complete design development.
8D - AGREEMENT BETWEEN THE CITY OF BREMERTON~ BREMERTON HOUSING AUTHORITY~
BREMERTON SCHOOOL DISTRICT~ AND BAINBRIDGE ARCHITECTS REGARDING ANDERSOH
COVE MASTER PLAN & URBAN DESIGN STUDY (#AB02-198): Gary Sexton, Director of Economic
Development, explained that this agreement describes the Scope of Work, Approach, Fees and
Schedule for a Preliminary Master Plan & Urban Design Study, for the greater Anderson Cove area,
Bremerton, Washington. Council action required is approval for the Mayor to sign the agreement
between the City of Bremerton, Bremerton School District, Bremerton Housing Authority, and Bainbridge
Architects Collaborative.
Linda Pierce thanked Mr. Sexton for providing details on the purpose for this Agreement, and offered
additional comments in support of the plan.
Don Larson questioned if this urban design included trees. Mr. Sexton assured him it would.
5'
TAPES #1856 & #1857
City Council Reg. Mtg. Minutes
October 23, 2002
Page 4 of 7
Ruth Redman did not understand how the City could make a decision to bulldoze their neighborhood,
and urged the City to take a look at the homes in the area and talk to the residents. Mr. Sexton assured
the neighborhood that they would be involved in the process. Keith Hoofnal:lle explained that the City's
original plan was to increase home ownership in the Anderson Cove area, but was concerned that this
plan appears to have now "gone by the wayside".
Mr. Nvaren reassured the neighbors that this was a study to obtain information, and that nothing would
happen to Anderson Cove without the residents involved in the process.
Mr. Maupin was very encouraged to see the City, the Bremerton Housing Authority, and the Bremerton
School District all come together to work on this project.
Mr. Shepherd provided his support for the study and believed that there was room for improvement with
respect to communication between the citizens and involved parties.
Mr. Short respected citizen concerns and emphasized that this is a study with no action to be taken at
this time.
Mr. McConnell requested that the Council receive a full report after this Study was completed.
Mr. Rollman asked why the study would be conducted when there is clearly no funding available for
school construction in the first place. Mr. Sexton answered that this study would determine if this
project is financially feasible and that funding sources may be found.
#2587 M/S/C/U (Shepherd/Maupin) Move to allow the Mayor to sign the agreement between the City of
Bremerton, Bremerton Housing Authority, Bremerton School District, and Bainbridge Architects
Collaborative preliminary design for the greater Anderson Cove Preliminary Master Plan & Urban Design
Study Scope of Work.
9A - ORDINANCE NO. 4815 (THIRD READING) REPEALING ORDINANCE NOS. 477'1 AND 4772~ TO
BRING THE CITY BACK INTO COMPLIANCE WITH THE REQUIREMENT OF THE GROWTH
MANAGEMENT ACT(#AB02-191): The first reading of this ordinance was heard on "October 9, 2002;
and the second reading was heard on October 16, 2002.
There were no comments from the public.
#2645 M/S/C/U (Short/Nygren) Move to pass Ordinance No. 4815 on third reading.
9B - ORDINANCE NO. 4816 (SECOND READING) RELATING TO 2003-2008 SIX-YEAR
TRANSPORTATION IMPROVEMENT PLAN (#AB02-193): The first reading of this ordinance was heard
on October 16, 2002.
Don Larson asked if planting strips were included in this plan. Mr. Mecham stated that this plan was
preliminary at this time, but that landscaper architects would be involved in the plan in the next phase.
#2805 M/S/C/U (Short/Olsen) Move to pass the Ordinance No. 4816, which approves the City's 2003-
2008 Six-Year Transportation Improvement Program, and direct the Mayor to forward the Ordinance and
Plan to the Department of Transportation, Local Programs Office.
Mike Shepherd stepped out of the meeting at approximately 6:55 P.M. He did not return, and therefore
was not available for any further vote this evening...
9C - ORDINANCE (FIRST READING) REGARDING AMENDMENTS TO BMC CHAPTER 21.07
ZONING CODE TO PROVIDE FOR SENIOR HOUSING PROJECTS (#AB02-199): Chris Hugo,
Director of Community Development, mentioned that nearly 20% of Bremerton citizens are 55 and older,
TAPES #1856 & #1857
City Council Reg. Mtg. Minutes
October 23, 2002
Page 5 of 7
and this percentage is expected to increase to 30% over the next generation. The Bremerton Municipal
Code includes no provisions for senior housing projects designed for this specific population. The
proposed code amendments provide opportunity to develop housing projects designed for the housing
needs and lifestyles of seniors while insuring that the projects are compatible with the surrounding
neighborhood. This initiative is also complementary to the housing goal of the Growth Management Act
that directs local governments to meet the housing needs of all segments of society.
Don Larson suggested that hobby centers be added to any Senior Housing projects.
Mr, Olsen continued to question the definition of "senior". Mr. Nyflren considered Mr. Olsen's concerns
about the age guidelines used in the ordinance, but pointed out that it was not the government's job to
dictate who can and cannot live with the senior's, and that the guidelines used for the ordinance were
modeled after Federal guidelines.
Mr, McConnell asked if this Type IT! Special Permit would automatically go before the Hearing
Examiner? Mr. Huao responded yes, that every one of these would go before the Hearing Examiner for
a Public Hearing.
#TAPE 1857
#0025 M/SIC (Short/Maupin) Move to approve ordinance on first reading.
Voted in favor of Motion: Nygren, Rollman, Maupin, Short, and Arends
Voted opposed to Motion: Olsen and McConnell
Motion carried: 5-Yes; and 2-No
9D - ORDINANCE (FIRST READING) RELATING TO INSURANCE REQUIREMENTS FOR
ISSUANCE OF A PERMIT FOR WORKING WITHIN THE CITY RIGHT-OF-WAY (#AB02-200): Ro_aer
Lubovich, City Attorney, said that the current provisions of Section 11.02.230 of the Bremerton
Municipal Code relating to insurance requirements for issuing a permit to work within or use a City right-
of-way may result in an unnecessary hardship for Bremerton residents. The proposed ordinance
updates the provisions of Section 11.02.230 allowing the Director of Public Works & Utilities to exercise
discretion when requiring insurance for right-of-way permits issued to residents.
There were no comments from the public.
Mr, Maupin and Mr. Nygren provided their comments in support of this action. Mr. McConnell asked
the City Attorney to confirm that the company's which provide homeowner's insurance cover City right-
of-ways. Mr. Lubovich was certain that most homeowner's insurance policies would cover the work, but
that he would look into to it.
#0270 MISICIU (Maupin/Short) Move to approve the proposed ordinance on first reading.
9E - ORDINANCE (FIRST READING) CREATING BMC CHAPTER 1.04 ESTABLISHING .~
FRAMEWORK FOR CODE ENFORCEMENT (#AB02-201): Roger Lubovich, City Attorney,
announced that the current provisions for code enforcement within the City of Bremerton are not
adequate to effectively provide for enforcement of violations of City Codes. The proposed ordinance
establishes a framework for code enforcement by adopting new procedures to be used in conjunction
with the City's Administrative Hearing Examiner process as established in Chapter 2.13 of the BMC.
Susan Brown and Kim Nac~el provided comments in support of this document.
#0675 M/S/C/U (Maupin/McConnell) Move to approve the proposed ordinance on first reading.
TAPES #1856 & #1857
City Council Reg. Mtg. Minutes
October 23, 2002
Page 6 of 7
9F - ORDINANCE (FIRST READING) RELATING TO PENALTIES ,FOR VIOLATIONS OF CITY
BUILDING C0DE~ UNIFORM FIRE CODE~ FIRE SPRINKLER CODE~ FIRE ALARM CODE~ AND
FALSE ALARM CODE (#AB02-202): Rocker Lubovich, City Attorney, clarified that current provisions of
Sections 17.04.110 and 18.02.090 of the BMC do not provide for effective enforcement of violations of
the City Building Code, the Uniform Fire Code, Fire Sprinkler Code, and Fire Alarm Code, and False
Alarm Code. The proposed ordinance amends Sections 17.04.110 and 18.02.090 in order to provide
for more effective enforcement of violations through Chapter 1.04 entitled "CODE ENFORCEMENT".
There were no comments from the public.
#0725 M/S/C/U (Rollman/Nygren) Move to approve the proposed ordinance on first reading.
9G - ORDINANCE (FIRST READING) RELATING TO ENFORCEMENT OF VIOLATIONS OF THFI
ZONING CODE (#AB02-203): Ro_aer Lubovich, City Attorney, emphasized that the current provisions
of Sections 21.02.940 and 21.02.945 of the BMC result in ineffective enforcement of violations of the
City's Zoning Code. The proposed ordinance updates these sections in order to provide for more
effective enforcement of violations of the Zoning Code through Chapter 1.02 entitled "CODE
ENFORCEMENT".
There were no comments from the public.
#0835 M/S/C/U (Nygren/McConnell) Move to approve the proposed ordinance on first reading.
Mike Short stepped out of the meeting at approximately 7.'45 P.M. He did not return, and therefore was
not available for any further vote this evening...
9H - ORDINANCE (FIRST READING) RELATING TO REMOVAL OF NUISANCE VEGETATION AND
THE ENFORCEMENT OF CODE VIOLATIONS RELATING TO SAME (#AB02-204): Roger Lubovich,
City Attorney, stated that the current provisions of Chapter 9.14 of the BMC relating to vegetation result
in ineffective enforcement of nuisance violations. The proposed ordinance updates Chapter 9.14 in
order to provide for more effective enforcement of nuisance vegetation violations thrOugh Chapter 1.04
entitled ~CODE ENFORCEMENT".
Susan Brown referred to Chapter 9.14.010, where it notes that the owner of property within the City
shall remove or destroy any vegetation that overhangs any sidewalk at a clearance height of less than
eight (8) feet, and questioned if that measurement could be lowered to 7-foot. Janet Lunceford
responded that the 8-foot measurement was used to remain consistent with the Municipal Tree
Ordinance, and because the 8-foot measurement was also the standard for signage.
Mr. Olsen questioned if City parks and properties were exempt from these nuisance ordinances. M~.
Lunceford stated that the City is only exempt from City watershed lands - everything else, the City must
clean-up.
#1160 M/SIC (Nygren/McConnell) Move to approve the proposed ordinance on first reading.
Voted in favor of Motion: McConnell, Nygren, Rollman, Maupin, and Arends
Voted opposed to Motion: Olsen
Motion carried: 5-Yes; and 1-No
91 - ORDINANCE (FIRST READING) RELATING TO ENFORCEMENT OF VIOLATIONS RELATIN~
TO GARBAGE AND REFUSE (#AB02-205): Rocker Lubovich, City Attorney, pointed out that the
current provisions of Chapter 6.04 of the BMC result in ineffective enforcement of violations of Chapter
6.04 relating to garbage and refuse. The proposed ordinance amends Chapter 6.04 in order to provide
TAPES #1856 & #1857
City Council Reg. Mtg. Minutes
October 23, 2002
Page 7 of 7
for more effective enforcement of violations relating to garbage and refuse through Chapter 1.04 entitled
"CODE ENFORCEMENT".
There were no comments from the public.
#'1200 M/S/C/U (McConnell/Olsen) Move to approve the proposed ordinance on first reading.
9J - ORDINANCE (FIRST READING) RELATING TO PUBLIC NUISANCES (#AB02-206): RoRer
Lubovich, City Attorney, concluded that the current provisions of Title 9 of the BMC do not provide !for
public nuisances or for enforcement of public nuisance violations. The proposed ordinance adds a mew
chapter, Chapter 9.16 entitled "Public Nuisances", which defines and declares what constitutes a public
nuisance, and provides for enforcement of public nuisance violations through Chapter 1.04 entitled
"CODE ENFORCEMENT".
There were no comments from the public.
#'1335 M/S/C/U (Nygren/Maupin) Move to approve the substitute amended ordinance on first reading.
With no further regular business, the meeting adjourned at 8:03 P.M.
Prepared and Submitted by:
Attest:
LORI SMITH
Council Liaison
PAUI_A JOHNSTON, Deputy City Clerk
CAROL ARENDS, City Council President
City of Bremerton
CA/PJ/Is/cge
c: Normal Distribution;
File
AGENDA BILL
BREMERTON CITY COUNCIL
1. SUBJECT: DIRECTOR OF ADMINISTRATWE FOR AGENDA: November 13, 2002
SERVICES ORIGINATING DEPT: Executive
ORIGINATOR: Mayor Bozeman
DATE SUBMITTED:
2. CLEARANCES: (Comment on back if necessary)
FIS~: & BI_~GET ~HAIRMAN
,
OPERATIONS CHAIRMAN
3. EXHIBITS:
EMPLOYMENT CONTRACT
JOB DESCRIPTION
RESUME - MICHAEL R. WILSON
APPROVED FOR SUBMITTAL:
COUNCIL PRESIDENT ~. ~: z-~_C..
4. SUMMARY STATEMENT AND REQUIREMENT FOR COUNCIL ACTION:
Pursuant to Chapter 2.05, section 2.05.020 of the Bremerton Municipal Code, Mayoral appointments of
department directors are subject to confirmation by the City Council. The Mayor desires to formally appoint
Mr. Michael R. Wilson as Director of Administrative Services with an employment start date of December 2,
2002.
5. RECOMMENDATION:
Motion to approve the appointment of Michael R. Wilson as Director of Administrative Services for the City of
Bremerton effective as of December 2, 2002 and authorize the Mayor to execute an employment contract in
substantially the same and conditions as the proposed contract.
7. NOTICE OF ACTION:
PULLED [~]] TABLED
COUNCIL DIRECTIVE:
APPROVED [--]
RESPONSIBLE OFFICIAL: Mayor Bozeman
ENFORCEMENT OFFICIAL: Mayor Bozeman
EXPIRATION DATE: n/a
REVIEW DATE: n/a
DISAPPROVED ~']
AMENDE~ ~:
8. AGENDA BILL NO.: 0,~ - ~}, l(,._,
9. IMPACT OF NON-PASSAGE:
10. IMPACT ON STAFFING~ BUDGETS~ FACILITIES~ EQUIPMENT OR OTHER RESOURCES:
11. RESEARCH SOURCES:
Employment Contract
Michael R. Wilson, Director of Administrative Services
EMPLOYMENT CONTRACT
Director of Administrative Services
This Employment Contract is entered into this 2nd day of December, 2002 by and
between the City of Bremerton, a chartered first class municipal corporation organized under the
laws of the State of Washington, (hereinafter referred to as "City"), and Michael R. Wilson
(hereinafter referred to as "Mr. Wilson").
WHEREAS, the City desires to employ the service of Mr. Wilson as Director of
Administrative Services for the City of Bremerton, as provided by Chapter 2.50 of the Bremerton
Municipal Code; and
WHEREAS, it is the desire of the Mayor and the City to provide certain benefits, establish
certain conditions of employment, and set working conditions for such employment; and
WHEREAS, it is the desire of the City to: 1) secure and retain the services of Mr. Wilson
and provide inducement for him to remain in such employment, 2) ensure Mr. Wilson's future
security in order to promote his peace of mind and long-term successful performance with the
City of Bremerton; 3) act as a deterrent against malfeasance or dishonesty for personal gain on
the part of Mr. Wilson; and 4) promote Mr. Wilson's adherence to the highest level of ethical
standards; and
WHEREAS, Mr. Wilson desires to accept employment as Director of Administrative
Services for the City of Bremerton, Washington,
NOW, THEREFORE, in consideration of the mutual benefits and promises herein
contained, the parties agree as follows:
1. DESCRIPTION OF SERVICES: Mr. Wilson agrees to furnish full time services as
defined in the job description for the Director of Administrative Services which is attached and
hereby incorporated as a part of this Agreement, which may be amended by the mutual
agreement of the City and Mr. Wilson.
2. SUPERVISION: The parties understand and agree that Mr. Wilson shall perform
independent functions and responsibilities in the exercise of his field of work. In the
performance of these duties Mr. Wilson shall work under the direction of the Mayor.
1
Employment Contract
Michael R. Wilson, Director of Administrative Services
3. TERM: The Director of Administrative Services shall serve at the pleasure of the
Mayor commencing December 2, 2002, and continuing until termination or removal by terms of
this Agreement Nothing in this agreement shall prevent, limit or otherwise interfere with the right
of Mr. Wilson to resign at any time from his position with the City, subject only to the provisions
set forth in this agreement. Mr. Wilson shall be permitted to perform other work (such as
teaching, consulting or other services performed on employee's time off), provided it does not
conflict or interfere with his employment with the City, does not exceed more than 10 hours per
week, and the Mayor is notified and approves in advance of such work.
4. COMPENSATION: Mr. Wilson and the City agree that compensation for services
rendered under this agreement shall begin at Band 20, Rate 6, three thousand seven hundred
twenty-nine dollars and ninety-seven cents ($3,729.97) semi-monthly, with a monthly rate of
approximately seven thousand four hundred sixty dollars and no cents ($7,460.00).
It is understood that the compensation level is currently at the maximum of the pay band.
If, however, this should change, Mr. Wilson shall then be eligible for a pay rate adjustment upon
completion of twelve months at each rate in the salary band provided that he receives a "Meets
Expectations" (or equivalent) on his work performance evaluation, together with annual cost-of-
living increases based on the amount provided to exempt city employees.
Said compensation shall be paid on the City's regular payroll system. It is expressly
understood by and between the parties that the Director of Administrative ServiCes is an exempt
position pursuant to the Fair Labor Standards Act.
5. BENEFITS: All benefits shall be afforded as provided for in this Agreement
pursuant to the Bremerton Municipal Code, specifically, Chapter 2.50, Management &
Professional Staff Compensation Program, and as provided under the laws of the State of
Washington relevant to the position of Director of Administrative Services, unless specifically
provided otherwise in this agreement. Vacation is set at 25 days per year. For the year 2002
vacation leave shall be pm-rated based upon date of hire. Subsequent years shall follow the
established increases in vacation leave based on years of service pursuant to 20.50.040 (c) of the
BMC as applicable. Mr. Wilson shall initially be credited with 12 days of sick leave. After one
year of employment, Mr. Wilson shall be provided with one day of sick leave per month of
employment.
6. PERFORMANCE REVIEWS: Performance reviews shall be conducted in
2
Employment Contract
Michael R. Wilson, Director of Administrative Services
compliance with applicable Human Resources Policies, and shall utilize review standards and
forms approved by the Human Resources Department.
7. RETIREMENT: The City shall pay the employer's contribution toward Mr. Wilson's
federal social security benefits. Mr. Wilson understands that the position of Director of
Administrative Services is a PERS eligible position, and that he will be required to make the
required contributions towards the State Retirement System. The City shall also make their
required contribution into the State Retirement System.
8. EXCLUSION FROM COLLECTIVE BARGAINING: Mr. Wilson acknowledges,
understands and agrees that the position he is accepting with the City is not included in the City's
Civil Service system, is exempt from Union Membership, and is a managerial/professional
employee as defined under BMC 2.50.
9. TERMINATION OF SERVICES: The Director of Administrative Services is an "at
will" employee and the City may terminate him without cause, at any time, with thirty (30) days
notice required or 30 days pay in lieu of notice. Mr. Wilson's severance pay shall be set at ninety
(90) days.
In the event that the Director of Administrative Services terminates his employment with the City,
he agrees that he shall provide the City not less than thirty (30) days prior notice of the effective
date of said termination in order to afford the City a reasonable opportunity to find a replacement.
The parties further agree that in the event a replacement is found who is able to commence
employment prior to the expiration of thirty (30) days notice, that they may, in good faith, negotiate
an earlier termination date.
This Agreement may be terminated for cause, without notice, and employee understands, agrees
and accepts that no severance pay shall be paid. "Cause" shall be defined as including but not
limited to any reason for which a regular employee may be dismissed under the Bremerton Civil
Service Rules, specifically Rule 19.
10. PROFESSIONAL DEVELOPMENT, TRAVEL AND DUES: The City agrees to budget
and pay for the professional dues of Mr. Wilson necessary for this full participation as a member
of the Washington City/County Management Association and the International City/County
Management Association. The City hereby agrees to budget and pay the travel and subsistence
expenses of Mr. Wilson for short courses, seminars, professional and official travel, meetings
and occasions adequate to continue the professional development of Mr. Wilson and to
3
Employment Contract
Michael R. Wilson, Director of Administrative Services
adequately pursue necessary official and other functions of the City, including attendance at the
Washington City/County Management Association and International City/County Management
Association conferences. Attendance at such conferences shall be at the convenience of City and
only as time and budgets permit and when authorized by the Mayor.
12. GENERAL PROVISIONS:
A. Mr. Wilson agrees that his position is a managerial position and acknowledges that he
will occupy a position of confidentiality involving personnel, labor relations and legal matters.
B. This Agreement constitutes the entire agreement between the parties and both parties
acknowledge that there are no other agreements, written or oral, that have not been fully set forth
in the text of this Agreement.
C. The parties hereby further agree that this Agreement cannot be amended or modified
without the written concurrence of both parties.
D. Any notices required to be given shall be in writing and delivered to the following
parties
at the following addresses:
Human Resources Department
239 - 4th Street
Bremerton, WA 98337
Michael R. Wilson
c/o City Hall
239 4th Street
Bremerton, WA. 98337
E. This Agreement shall be construed and interpreted in accordance with the laws of the
State of Washington. In the event of a dispute, such dispute shall be litigated in the Superior
Court of Kitsap County, Washington.
F. The invalidity or unenforceability of any provision hereof shall, in no way, affect the
validity or enforceability of any other provision.
G. Failure to insist upon strict compliance with any terms, covenants, or conditions of
this Agreement shall not be deemed a waiver of such, nor shall any waiver or relinquishment of
such right or power at any time be taken to be a waiver of any other breach.
IN WITNESS WHEREOF, the parties have caused this Agreement to be executed the day
and year first above written.
4
MICHAEL R. WILSON
Director of Administrative Services
Employment Contract
Michael R. Wilson, Director of Administrative Services
REVIEWED BY:
CITY OF BREMERTON:
CAROL S. CONLEY
Director of Human Resources
BY:
CARY E. BOZEMAN
Mayor
RECEIVED FOR FILING:
APPROVED AS TO FORM:
KATHLEEN McCLUSKEY
City Clerk
ROGER LUBOVICH,
City Attorney
5
CITY OF BREMERTON Classification Specifications
TITLE: DIRECTOR, ADMINISTRATIVE SERVICES/CITY CLERK
August, 1992
No. 4103
ESSENTIAL FUNCTION
Department head and City Clerk responsible for establishing, authenticating and maintaining aH
official City records, directing budget, cash management, accounting, financial reporting and
forecasting, inventory and assets, purchasing, liability protection, data processing and tax and license
programs and providing administrative support services to the administrative activity of the judicial
branch in conformance with applicable statutes, regulations and policies.
DIS'IINGUISHING CHARAC~I-ERISTICS
This is a professional executive management administrative classification. Work Consists of
planning, organizing and directing the operations of multiple administrative service programs and
personnel.
EXAMPLES OF DUTIES
Administrot/ve Services: Provides information, data and advice supportive to the development and
implementation of City policy and legislation related to financial management, development and
expansion of computer hardware and software systems, maintenance of official public records ~nd
municipal court administrative functions. Provides general direction in the area of budget
preparation and implementation and financial operations of the city; computer development,
training and security; and Municipal Court administrative operations. Dire. ets the administration
of purchasing procedures, business tax and license collection, enforcement and audit; and risk
management, safety and workers compensation programs. Performs the statutory functions of City
Clerk.
Departme0t Operations: Directs and implements changes to services and funding levels of assigned
program areas and assists the Judge to implement changes to Court services and funding levels,
operating standards, procedures and rules. Monitors departmental budget and service contract
compliance control systems. Establishes work methods, selects operating systems, equipment and
procedures. Prepares reports on program activities and operations.
Pro_re'am Budgetln_p: Quantifies and describes program activity, trends and resources; establishes
objectives; justifies and presents funding requirements for: 1) public meetings and public recording
of City Council; 2) providing City Clerk public services and maintaining the repository of City
records; 3) City Treasury, accounting and cash management programs, 4) purchasing, inventory and
fixed asset programs, 5) tax and license programs, 6) the risk management program, 7) da~ta
processing programs and 8) administrative support to the Municipal Court.
Department Orga~i:,~ation: Establishes the organizational structure of the department and assists
the Judge in establishing the organization of the Court office. Assigns duties to positions in the
department and assists the Judge in assigning duties to Court positions. Arranges for classification
of positions and obtains budget authority for department positions and assists the Judge in doing
the same for Court positions. Serves as appointing authority for all employees of the department.
Supervises and/or directs the supervision, selection, training, evaluation, discipline and discharge
of department personnel. Assists the Judge in managing appointing authority and personnel duties.
CITY OF BREMERTON
Classification Specifications
August, 1992
TITLE:
DIRECTOR, ADMINISTRATIVE SERVICES/CITY CLERK
No. 4103
General City Management: Responds to inquiries from officials and staff, outside agencies and the
public. Participates in policy development considerations such as setting general budget priorities,
strategies, capital improvement programs, etc. Participates in civic, community and professional
organizations. Performs other assigned work which is consistent with the responsibilities assigned
to the classification and necessary to the operations of the office and/or the City.
REQUIRED QUALIFICATIONS
Basic purpose and function of the office of a City Clerk under in city government;
Basic purpose and function of the treasurer in civic government;
Basic purpose and function of Municipal Court operations in the State's city government;
Basic principles of the conduct of public meetings of elected and appointed bodies;
Basic construction and forms of city ordinances, resolutions, regulations and documents;
Techniques used for gathering, evaluating and summarizing program service activity and
resource information in preparation of budgets;
Management, personnel and ethical practices as they apply to the operations of local
government offices.
Essential Abilities
Able to:
Interpret and ethically apply the intent and specific provisions of statutes and regulations
to specific situations requiring weighing the proper application of actions needed to maintain
appropriate checks and balances;
Evaluate, plan and establish a proper sequence of actions for multiple functional programs
and personnel with differing roles to accomplish goals in service of the public interest;
Provide verbal and written directives, information and advice to a wide variety of people and
officials;
Persuasively and ethically communicate ideas and assert a point of view in complex or
controversial situations;
Exhibit and instill in subordinates a high public service priority in contacts with the public
and others encountered in the work.
REQUIRED LICENSES AND CERTIFICATIONS
A valid Washington State driver's license is required and must be obtained prior to date of
appointment or another date set by the City.
Ability to post bond is required.
Ouali _lying Training and F. amerien~
Combined training and experience which demonstrates ttiat a person has obtained the required
knowledge and is able to perform the work required (with reasonable accommodation, if
necessary). In the management profession, a person with the following combined training and
experience would qualify to compete in a selection process: Graduation from an accredited college
or university with a degree in business or public administration and seven (7) years of full-time
experience managing public sector operations at least two of which involved centralized poliCy
direction of multiple programs with conflicting or competing roles or resource needs.
CITY OF BREMERTON
Classification Specifications
August, 1992
TITLE:
DIRECTOR, ADMINISTRATIVE SERVICES/CITY CLERK
No. 4103
LEGAL AND REGULATORY CONDITIONS OF EMPLOYMENT
OccUPATIONAL GROUP: Executive Management. This is a professional management classi-
fication included in the executive management group. In addition to the essential functionl of
administrative head of an office or department, a person in executive management actively partlci-
pates in: 1) evaluating the costs and effects of aH existing operations and services; 2) devising
strategies, advising, supporting and coordinating the activity of elected officials considering issues
which involve confficting or competing internal and external needs and resources; and 3) implernen-
ting City'wide service and operational changes.
FAIR LABOR STANDARDS ACT: The position qualifies for exemption from the Fair Labor
Standards Act minimum wage and overtime provisions under the Act's Executive Employees and
Administrative Employees exemptions.
REPRESENTATION: The position is excluded from the non-uniformed bargaining unit pursuant
to Washington Public Employment Relations Commission Decision No. 1346 - PERB dated the 19th
day of January, 1982 under the second sentence reading, in relevant part: "F-,xcluding...Department
Heads and their assistants, Supervisors....".
CIVIL SERVICE: The classification is excluded from the Civil Service pursuant to the BremertOn
City Charter: Article IX Civil Service Section 39. Classification of Service: (1) There shah be
excepted from the operation of this article the following: Mayor, City Council Members, City
Attorney, Municipal Judge, Department Heads, all non-salaried members of appointive boards and
commissions; ' and any other employee exempted f?om the operation of this Article by the
Commission.
APPOINTMENT AND REMOVAL AUTHORITY: The position is filled by Mayoral appointment
with confirmation by the City Council pursuant to the Bremerton City Charter Article HI
Legislation and Administration Section 8 which states, in relevant part: 'The Mayor shah be the
administrator of the City and shah be responsible for the supervision, control and operation of all
City departments and the office of the City Clerk, except as provided otherwise in this Charter, aad
shah make all appointments of administrative heads with confirmation by the City Council.
Removal is at the will of the Mayor.
AGENDA BILL
BREMERTON CITY COUNCIL
1. SUBJECT:
APPROVAL OF THE DESIGN/BUILD CONSTRUCTION
C I'RACT BETWEEN THE CITY OF BREMERTON
AND OPUS NORTHWEST LLC
GAI~Y_~EXT~'[~r'~f Economic Development
I~O~R A. LUBpVICH,-Cffff3~ Attom"~'~e~
OPE~i~S CHA~AN
FOR AGENDA: Nov. 13, 2002
ORIGINATING DEPT: Economic
Development
ORIGINATOR: Gary Sexton
DATE SUBMITTED: Oct. 24, 2002
3. EXHIBITS:
DESIGN/BUILD CONSTRUCTION CONTRACT
BETWEEN THE CITY OF BREMERTON AND
OPUS NORTHWEST LLC
APPROVED FOR SUBMITTAL:
COUNCIL PRESIDENT
ENDORS~
MAYOR~.-..-~~
4. ,JMMARY STATEMENT AND REQUIREMENT FOR COUNCIL ACTION:
This Design/Build Construction Contract is for the project work through the construction phase of the
downtown conference center.
8. RECOMMENDATION:
Move to approve and authorize the Mayor to finalize and execute the Design/Build Construction Contract
between the City of Bremerton and OPUS Northwest LLC with substantially the same terms and conditions as
contained in the proposed agreement. And further to finalize and execute the air rights
sale documents for the hotel and
restaurant pads, subject to approvai of the,
City Attorney. , ·
9. RESPONSIBLE-t~FFICIAL:
ENFORCEMENT OFFICIAL:
10. NOTICE OF ACTION:
APPROVED
PULLED 1--1 TABLED
.Cf~UNCIL DIRECTIVE:
EXPIRATION DATE:
REvmw DATE:
DISAPPROVED [-'] AMENDED
11. AGENDA BILL NO.: ~'~,
AGENDA BILL
BREMERTON CITY COUNCIL
1. SUBJECT:
APPROVAL OF THE DESIGN/BUILD CONSTRUCTION
CONTRACT BETWEEN THE CITY OF BREMERTON
AND OPUS NORTHWEST LLC
GAI~Y ~~t~r'~f Economic Development
FOR AGENDA: Nov. 13, 2002
ORIGINATING DEPT: Economic
Development
ORIGINATOR: Gary Sexton
DATE SUBMITTED: Oct. 24, 2002
EXHIBITS:
DESIGN/BUILD CONSTRUCTION CONTRACT
BETWEEN THE CITY OF BREMERTON AND
OPUS NORTHWEST LLC
APPROVED FOR SUBMITTAL:
COUNCIL PRESIDENT
ENDORS~
MAYOR'---~ ~
4. SUMMARY STATEMENT AND REQUIREMENT FOR COUNCIL ACTION:
This Design/Build Construction Contract is for the project work through the construction phase of the
downtown conference center.
8. RECOMMENDATION:
Move to approve and authorize the Mayor to finalize and execute the Design/Build Construction Contract
between the City of Bremerton and OPUS Northwest LLC with substantially the same terms and conditions as
contained in the proposed agreement.
10. NOTICE OF ACTION:
PULLED [--] TABLED
COUNCIL DIRECTIVE:
APPROVED [--]
w
RESPONSIBLE OFFICIAL:
ENFORCEMENT OFFICIAL:
EXPIRATION DATE:
REVIEW DATE:
DISAPPROVED ~-] AMENDED
11. AGENDA BILL NO.: ~) ,9, - ~17
9. IMPACT OF NON-PASSAGE:
10. IMPACT ON STAFFING, BUDGETS~ FACILITIES~ EQUIPMENT OR OTHER RESOURCES:
11. RESEARCH SOURCES:
DESIGN/BUILD CONSTRUCTION CONTRACT
This AGREEMENT made as of the
__ day of November in the year 2002.
BETWEEN the Lead Agency
City of Bremerton
245 Fourth Street
Bremerton, WA 98337
,amd the Designer/Developer (for purposes of this agreement referred to as "Developer")
Opus Northwest LLC
915 - 118th Avenue SE, Suite 300
Bellevue, WA 98005
For the following Project:
First and Washington Conference Center
The Lead Agency and Developer agree as follows:
RECITALS:
1 Lead Agency currently owns or controls certain real estate located in the City of
Bremerton as delineated and described in Exhibit A, attached hereto, and desires to have a mixed
use facility designed, developed, and constructed. The project will have both public and Private
ownership components.
2 Developer and the Lead Agency have agreed that Developer will finalize the design and
construct the project given the following parameters:
The Project is a public/private joint development between the Lead Agency and the
Developer for the development of a mixed-use facility on the waterfront immediately adjacent to
the Ferry Terminal. This agreement is for the project work through the completion of the Final
Plans, Specifications, Project Cost and Critical Path documents, and Phase III Construction. The
Project elements includes:
· Parking Structure
A parking structure located on 3 levels below the street elevation of Washington Avenue. The ownership
will be jointly held between the City of Bremerton and Kitsap Transit subject to a parking managing
agreement between Kitsap Transit, the City and the Developer. Parking will support the conference
center, hotel, restaurant, offices, retail, marina, commuters and visitors.
· Conference Center
"Conference Center" shall mean the Regional Conference Center, a regional tourism related facility,
which will include no less than 18,000 square feet of gross floor space, and not less than 7,500 square feet
of meeting area, and related public spaces, including a lobby area and additional breakout spaces. The
conference center as designed has a distinct identity as a public facility, with well-defined exterior
entrances, and a waterfront orientation. The main conference room is designed to be able to seat 420
persons for banquets and 600 for meetings. The meeting/banquet room shall be capable of being
separated into four smaller spaces. The conference room includes reception, lobby and storage areas. A
warming kitchen is included to support catered banquets. Office space is designed for managerial or
supervisory personnel. Upon construction, the Center will be owned, managed, operated and maintained
by the City.
Page 1 of 43
· Hotel
The Hotel as designed includes 100 guest rooms and will be financed, owned, operated and maintained by
the Developer or assigns agreed to in writing by the Lead Agency. The air rights for the hotel will be sold
to the Developer or assigns at the time the hotel construction commences.
· Restaurant
The restaurant will include approximately 4,500 gross square feet with sit down table service
and will be f'manced, owned, operated and maintained by the Developer or assign agreed to in writing bY
the Lead Agency. The air rights for the restaurant will be sold to the Developer or assigns at the time the
restaurant construction commences. As designed the restaurant will be located at the southeast comer of
the project.
· Retail Space
The accepted schematic design includes approximately 6,700 gross square feet commuter retail space
(CRB) excluding the restaurant located on the southwest section of the project with the majority on the
transit deck of the BTC. The retail space will be financed, owned, operated and maintained by Kitsap
Transit.
· Office Space
Approximately 34,000 Gross S.F. office space (KT Office and additional rental space) are designed
and located above the commuter retail space. Offices take advantage of water views. Final construction
plans and specification for these spaces will be prepared and submitted for review and approval of Kitsap
Transit upon the same Critical Path Schedule as established for thc public structures. The office space will
bc financed, owned, operated and maintained by Kitsap Transit. · Marina
Design of Bremerton Port District Harbor Master facilities for space up to 3,400 square feet located
on the southeast side of the parking level 2 will be prepared as agreed upon between the City and the Port,
a copy of which is attached. This agreement will be supplemented by supporting design and construction
agreements entered into hereafter between the City, the Developer and the Port of Bremerton. · Expanded Waterfront Park
Public open space park has been designed into the project and complements the existing boardwalk
and the waterfront park. Service/emergency vehicles and pedestrian access will be maintained between
boardwalk, waterfront park, this development and Washington Avenue. · Sensitivity Toward View Corridors
The design is sensitive to open space and view corridors. The design includes pedestrian access and
public view corridor through the site and to the open space from Second Street, the CRB pad, the transit
area below pad, and the Bremerton Transit Center (BTC). · Service and HOV Access
The project has several vehicle access requirements. Existing access to the project site is from
Second Street. Emergency vehicles will require access around the development complex. The design
includes freight/delivery vehicles and refuse disposal truck access to the loading dock area of the
development complex. A vehicle drop off area is provided at the main entrance to serve cars and tour
buses. Pedestrian access as designed is maintained to the facility from the main entrance, boardwalk,
waterfront park, and the BTC transit deck and passenger ferry. HOV garage access and egress has been
designed into the project.
Lead Agency Team
(1) The Lead Agency Representative is:
Gary Sexton, Proiect Manager
City of Bremerton
239 Fourth Street
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Bremerton, WA 98337
(2) The persons or entities in addition to the Lead Agency Designated Representative, who will
review the Project Designer's submittals to the Lead Agency Project Representative are: Dick Ha,/es of Kitsap Transit
Bror Elmquist, Representative of Kitsap Public Facilities District
Cary Bozeman, Bremerton Mayor
Chris Hugo, Director of Community Development
Gene Sample,/, Director of Public Works
4. Total Project Design Development:
Developer has prepared and submitted to the Lead Agency for Public Structures: design
documents as listed in Exhibit H; a Critical Path schedule (including permitting, design and
construction activities), see Exhibit B; and Total Project Budget, see Exhibit C. The Developer
has also included for Lead Agency review and comment Private Structure design documents.
Signing of this agreement by the parties acknowledges acceptance of and approval of both Public
and Private design components.
5. The Owner and Developer have agreed that the Project shall be designed and constructed
under the terms and conditions set forth below, and pursuant to separate agreements and
contracts yet to be entered into.
ARTICLE 1
SCOPE OF WORK
(a) Incorporation. Developer shall perform all of the work necessary for the construction ,of
the project (the "Work") other than the contracts entered into by the Lead Agency under Article
5. in accordance with this Agreement and design allowances and the design documents as listed
in Exhibit H; the Critical Path Schedule, Exhibit B; Guaranteed Maximum Price Schedule,
Exhibit C; the construction drawings and specifications as hereinafter prepared, by Developer and
approved by the Owner in accgrdance with this Agreement, and in accordance with applicable
building laws and regulations, safety regulations, and certain governmental regulations,
including compliance with NEPA, Davis-Bacon and By America for the parking garage.
Construction of other public structures within the Project shall comply with State Prevailing
Wages.
(b) Development of Final Plans and Specifications . Developer shall oversee, review, and
approve the preparation of Final Plans and Specifications for the Public Structures in accordance
with the design documents incorporated in Article l(a). The Final Plans and Specifications will
be issued in phases to correspond with the fast track construction schedule, Critical Path
incorporated in Article l(a) above. Final Plans and Specifications shall be submitted to the Lead
Agency for review and approval in accordance with the Critical Path Schedule. The costs of
changes or modifications made by the Lead Agency requiring any redesign in conflict with the
general scope and design, including design allowances, shall be borne by the Lead Agency and
the parties shall execute a change order in respect thereto. Lead Agency agrees that it will not
withhold its approval of said Final Plans and Specifications except for just and reasonable cause.
When the Final Plans and Specifications have been approved by Lead Agency, they shall be
Page 3 of 43
incorporated into this Agreement as Exhibit I "Construction Documents". Construction shall
proceed in accordance with the Final Plans and Specifications as approved, the Critical Path as
incorporated in attachment B, the Guaranteed Maximum Price, and approved change orders.
(c) Ownership of Documents. The Final Plans and Specifications, and all interim
construction drawings will be prepared by one or more Architects under agreement with the Lead
Agency, and such documents are and will remain the joint property of the Lead Agency and
Developer. Developer will deliver to Lead Agency three complete sets of the Final Plans and
Specifications for information and reference in connection with the Lead Agency's ownership
and use of the public structures. Within ninety (90) days after final completion of the Work,
Developer will deliver three complete record sets of plans and Specifications to the Lead
Agency. The Final Plans and Specifications may be used by the Lead Agency for ownership,
use, and maintenance of the Public Structures and modifications and additions to such structures.
The Final Plans and Specifications will not be used by the Lead Agency for projects on other
property without the prior written consent of Developer, and Lead Agency shall defend,
indemnify, and hold harmless Developer and the Architects from any claims arising directly or
indirectly from the Lead Agency's use of the plans and Specifications when used for
modifications and additions to the structures or in violation of this subsection.
(d) Construction Phase. Permitting and Construction will be fast tracked as noted in Exhibit
B.
ARTICLE 2
TIME OF COMPLETION
The Work shall be ready for final inspection and acceptance on or before 494 calendar
days after the date of timely commencement of construction in accordance with the Critical Path
Schedule, so long as all necessary development permits and approvals for'the Project have been
secured (hereinafter called the "Contract Time"). Final Acceptance is defined as issuance of a
Temporary or Final Certificate of Occupancy. If Developer is delayed at any time in the progress
of the Work by any act or neglect of Lead Agency, or by changes ordered in the Work by Lead
Agency or delays in the design approval process, or by labor disputes, fire, unusual delay in
transportation, fuel, material, or labor shortages or unavailability, action or inaction of public
authorities not arising out of the fault of Developer, casualties, or any causes beyond Developer's
reasonable control, then the Contract Time shall be extended by a period of time reasonably
necessary to alleviate the effect of such events on Developer. Such delay shall hereinafter be
referred to as excused delay.
ARTICLE 3
CONTRACT SUM
The Lead Agency shall pay the Developer under this Agreement the Contract Sum consisting of
(i) the Cost of the Work as hereinafter defined; (ii) Reimbursable Costs and Advances as
hereinafter set forth; and (iii) the Developer's Fee. The sum of the Cost of the Work,
Reimbursable Costs and Advances, and the Developer's Fee is guaranteed by the Developer not
to exceed $ 20.905,877.00, subject to additions and deductions by change order. Such maximum
Page 4 of 43
sum is the "Guaranteed Maximum Price" ("GMP"). Costs which would cause the GMP to be
exceeded shall be paid by the Developer without reimbursement by the Lead Agency. The GMP
is subject to any "allowances" or "contingencies" as may be set forth in the Project Budget, see
Exhibit C. Developer shall receive a fee of 8 ½% (eight and one half percent) on items (i) and
(ii) noted above which shall constitute its fee to cover Developer's general office overhead,
administrative expenses, development services, and profit. The Project Budget based on the
estimated Costs of the Work, Reimbursable Costs and Advances, Agency Costs, and Developer's
Fee are all set forth in detail Exhibit C hereto. The Cost of the Work is defined to include the
cost items and descriptions set forth in Exhibit D hereto. The Reimbursable Costs and Advances
are described and set forth in Exhibit E, hereto. If the Cost of the Work, Reimbursable Costs and
Advances, and the Developer's Fee total less than the GMP, then any such savings will be
divided equally between the Developer and the Lead Agency excepting the contingency
allowance which will be divided 67% to the Lead Agency and 33% to the Developer.
ARTICLE 4
HOTEL PENALITY
It is agreed that in the event the Developer should default, fail, or refuse to proceed with design
and construction in accordance with the Critical Path set forth in Attachment B of the Private
hotel, Developer shall forfeit $ 600,000 maximum of the Developer's fee provided herein on the
public structure costs as liquidated damages. These liquidated damages are the extent of any
damages for failure to complete construction and opening of the hotel and restaurant. Pursuant to
the Critical Path Schedule, the hotel is scheduled for completion and opening on November 8,
2004 and the restaurant is scheduled for completion and opening November 8, 2004. As
liquidated damages for each month the hotel fails to be completed and opened, Developer shall
forfeit $50,000 commencing January 8, 2005 up to a total forfeiture of $600,000. For each month
that the Developer fails to complete and open the restaurant after March 1,2005, the Developer
shall forfeit $25,000 up to a maximum forfeiture of $250,000. The combined maximum
forfeiture shall not exceed $600,000 and/or $50,000 monthly. The $600,000 liquidated damages
for construction and opening of the hotel and restaurant shall be withheld f~om final payments on
the public sector work until such time as the hotel and restaurant are completed and opened. It is
further agreed that all title transfer documents and finance documents between the Developer and
Purchasers of the hotel and restaurant shall include assignment rights and title reversion rights to
the Lead Agency in the event either the hotel or restaurant, respectively, are not constructed to
"in the dry" status by the time of conclusion of the liquidated damages forfeiture schedule.
ARTICLE 5
CONSULTANTS
The Lead Agency will enter into Consulting Agreements with design and testing consultants as
noted in Exhibit E, Reimbursable Costs and Advances which costs and fees are part of the
Guaranteed Maximum Price. Developer is hereby designated as authorized agent of the Lead
Agency to execute said agreements. Such agreements are hereby collectively referred to as
"Consulting Agreements." Developer shall be responsible for all communications, coordination,
review, supervision, and control of such consultants. Developer shall cause consultants to
submit any and all monthly progress billings and costs to Developer for Developer's review,
Page 5 of 43
approval, and inclusion with Developer's Project Applications for Payment as Reimbursement
Costs and Advances, see iExhibit F-1. Developer shall be responsible for disbursing such
payments to consultants as such sums are received by Developer from Lead Agency.
ARTICLE 6
PAYMENT OF CONTRACT SUM
(a) Progress Payments. Developer shall submit to Lead Agency on or before the last
day of each month a "Project Application for Payment" signed by Developer in the form attached
hereto as Exhibit F. The Project Application for Payment (see Exhibit F-2) shall request
payment of a specified dollar amount, using a Schedule of Values based upon the GMP schedule,
Attachment C. Along with each application for payment to the Lead Agency, Developer shall
deliver its Conditional Lien Waiver and Indemnity Against Liens in the form of Exhibit G. Each
Project Application for Payment shall include a proportionate share of Developer's Fee. The
Lead Agency shall withhold retention in accordance with RCW 60-28. The retention shall also
serve as a reserve for the hotel penalty.
(b) Payment Procedures. Any objections which the Lead Agency may have regarding
a Project Application for Payment shall be made in writing by the Lead Agency Representative
within 15 days of receipt of the application for payment. Failure to provide a timely written
objection shall not, however, constitute any waiver of right to withhold and/or not approve
payment applications pursuant to the terms of this Contract. The Lead Agency shall pay all
approve portions of Application for Payment on or before the last business day of the thirtieth
(30) day of the following calendar month, so long as Lead Agency shall have received the
Project Application for Payment on or before the last business day of the preceding calendar
month.
(c) Final Payment. Payment of the full Contract Sum shall be due thirty (30) days
after Final Acceptance and Submittal of the Final Application for Payment by Developer.. The
Application for Final Payment shall include a conditional full and final lien release of all claims
by the Developer, along with conditional final lien releases executed by all consultants,
subcontractors, and suppliers. Subject to the additional terms and conditions regarding final
payment as set forth above, the Lead Agency shall make payment to Developer of the full
Contract Sum under the same terms, conditions, and time spans as set forth in Article 2, Article 4
above and Article 6(a)(b).
(d) Interest. Interest shall accrue at the rate of twelve percent (12%) per annum on
any amounts which Lead Agency fails to timely pay to Developer under the terms and conditions
of this Agreement.
ARTICLE 7
CHANGES Il'/THE WORK
(a) Changes Permitted. The Lead Agency, without invalidating this Contract, may
order changes in the Work within the general scope of this Contract, consisting of additions,
deletions or other revisions, with the Cost of the Work, Reimbursable Costs and Advances,
Page 6 of 43
Developer's Fee, Contract Sum, GMP and Contract Time being adjusted accordingly. All such
changes in the Work shall be authorized by a Change Order and shall be executed under the
applicable conditions of this Agreement. The Developer's Fee, equal to 8.5% shall be adjusted
upward, if at all, in accordance with the terms hereof but shall not be reduced if deductive
change orders are issued. The Contract Sum, GMP and Contract Time may be changed only by a
written change order.
(b) Minor Changes. Developer shall have the authority to make minor changes in the
Work not involving an adjustment in the Contract Sum or GMP or an extension of the Contract
Time, and not inconsistent with the intent of the Contract Documents, provided that Developer
use all reasonable efforts to give the Lead Agency Representative prior notice (which may be
oral or written) of each such change and shall record all such changes in writing, and provided
that such changes do not adversely affect the quality or the value of the Work described in the
Contract Documents.
ARTICLE 8
GUARANTY BOND
Developer shall furnish a labor and materialmen's bond as required by RCW 39.08.
Further, upon Lead Agency's written demand, Developer shall furnish a bond covering its
faithful performance of this Contract and the payment of all obligations arising thereunder with
regard to the Public Structures in such form as Lead Agency may reasonably prescribe with
Developer's surety company. If such bond is required, and upon receipt by Lead Agency of such
bond, Lead Agency shall pay Developer the premium for such bond, as an extra to the Contract
Sum and the GMP, but without Developer Fee Mark up and/or contingency fee increase.
ARTICLE 9
CORRECTION OF WORK AND GUARANTY~
(a) Correction of Work. If during or after the period of construction the Work or any
portion thereof is found to be defective or not in accordance with the Contract Documents,
Developer shall correct it promptly after receipt of notice from Lead Agency to do so unless
Lead Agency has previously given Developer written acceptance of such condition with full
awareness of such deficiency or deficiencies. Lead Agency shall give such notice promptly after
discovery of the condition and shall confirm any verbal notice with written notice promptly after
the verbal notice. All such defective or nonconforming work shall be corrected or removed f~om
the site, if necessary, and the Work shall be corrected to comply with the Contract Documents.
(b) Guaranty. Developer guarantees the Work for a period of one (1) year after the
Date of Final Acceptance (as established by the issuance of a Certificate of Occupancy there for).
Extended warranties for such longer period(s) of time as may be prescribed by the terms of any
applicable special guarantee(s) required by the Contract Documents shall be provided by the
applicable manufacturer, vendor, or subcontractor as required by the Contract Documents. Any
guarantee work shall be done in accordance with the requirements above as to correction, repair
or replacement of work during the conslruction period. Developer further represents that the
Page 7 of 43
materials and equipment included within the Work shall be of good quality and new unless
otherwise specified or permitted by the Contract Documents, that the Work will be free from
defects not inherent in the quality required or permitted, and that the Work will be in conformity
with the requirements of the Contract Documents. Work not in conformity with the above
requirements and failure of the Work to be in compliance with the Final Plans and Specifications
may be considered defective. Any claims made by Lead Agency shall be made in writing and
within a reasonable period of time after the defect is discovered but in any event no later thm~ ~he
date sixty (60) days after the date of discovery. Failure to make such claims in writing within
such time period shall constitute a waiver by Lead Agency of such claims. Lead Agency shal~ be
required to perform routine and appropriate regular maintenance during the warranty period.
ARTICLE 10
INSURANCE AND BONDS
(a) Developer's Liability Insurance. Developer shall purchase and maintain such
insurance as will protect it from claims set forth below which may arise out of or result from
Developer's operations under this Contract, whether such operations be by Developer, by any
subcontractor, or by anyone directly or indirectly employed by any of them, or by anyone for
whose acts any of them may be liable.
(1) Claims under workers, compensation, disability benefits, and other similar
employee benefit acts;
(2)
Claims for damages arising out of bodily injury, occupational sickness or disease,
or death of its employees;
(3)
Claims for damages arising out of bodily injury, sickness or disease, or death of
any person other than its employees;
(4)
Claims for damages insured by usual personal injury liability coverage which are
sustained by (i) any person as a result of an offense directly or indirectly related to
the employment of such person by Developer, or (ii) any other person;
(5)
Claims for damages arising out of injury to or destruction of tangible property,
including loss of use resulting there from, and
(6)
Claims for damages because of bodily injury or property damage arising out of
the ownership, maintenance or use of motor vehicles.
(b) Insurance Limits. The insurance required by Subparagraphs (a) (3), (a) (4), (a) (5)
and (a) (6) of this Article 8 shall be written for limits of liability not less than Two Million and
No/100 Dollars ($2,000,000.00) combined single limit coverage for bodily injury and property
damage on an occurrence basis. Developer also agrees to maintain Three Million and No/100
Dollars ($3,000,000.00) of umbrella liability insurance coverage which, on an occurrence basis,
insures the risks described in subparagraphs (a) (3), (a) (4), (a) (5) and (a) (6) above. This
umbrella coverage shall be in excess of the single limit coverage described in the foregoing
Page 8 of 43
sentence. Said insurance shall include contractual liability insurance as applicable to
Developer's obligations to indemnify Lead Agency as required by subparagraph (k) of Article 11
hereof. The insurance required by subparagraphs (a) (1) and (a) (2) of this Article 10 shall be
written for limits required by law. The liability insurance to be carded by Developer shall be
commercial general liability insurance including the following additional coverages:
(1) Premises and operations (including XCU coverages);
(2)
Independent developer's protective, products and completed operations, personal
injury with employment exclusion deleted, contractual coverage, and broad form
property damage including completed operation, worker's compensation
insurance and employer's liability insurance.
(3) Errors and omissions insurance.
Evidence of insurance reasonably acceptable to Lead Agency (such as certificates of
insurance) shall be filed with Lead Agency prior to commencement of the Work. Developer
need not supply copies of the actual policies. Certificates of insurance shall contain a provision
that coverages afforded under the policies will not be cancelled or materially modified until at
least ten (10) days prior written notice has been given to Lead Agency.
(c) Lead Agency's Liability Insurance. Lead Agency shall be responsible for
purchasing and maintaining its own liability insurance and, at its option, may purchase and
maintain such insurance as will protect it against claims which may arise from operations under
this Contract.
(d) Property Insurance.
(1)
Developer shall purchase and maintain until the' Date of Substantial
Completion All Risk Builder's Risk insurance upon the entire work at the
site to the full insurable value thereof. This insurance shall include the
interests of Developer, Lead Agency, subcontractors and sub-
subcontractors of all tiers in the Work and shall insure against the perils
normally insured against in an All Risk Builder's Risk policy, including
vandalism, malicious mischief, transit, collapse and testing, shall be
deemed the primary insurance as to covered risks, and shall have a
deductible amount of not more than Two Thousand Five Hundred and
No/100 Dollars ($2,500.00) per occurrence. Developer shall be
responsible for deductible losses (not to exceed $2,500.00 per occurrence)
to the extent caused by Developer or its agents, employees, and
subcontractors. This insurance shall include the interests of Developer,
Lead Agency, subcontractors and sub-subcontractors in the Work. Lead
Agency shall be an additional insured on the policy.
(2)
Developer shall file a copy of all policies with Lead Agency before an
exposure to loss may occur.
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(3)
Developer and Lead Agency waive all rights against each other for
damages caused by fire or other perils to the extent covered by insurance
provided under paragraph (d) of this Article 10, except such rights as they
may have to the proceeds of such insurance. Developer shall require
similar waivers from all of its subcontractors and their sub subcontractors.
ARTICLE 11
MISCELLANEOUS PROVISION
(a) Supervision and Construction Procedure. Developer shall supervise and direct the
Work and shall be solely responsible for all construction means, methods, techniques, sequences
and procedures, and for coordinating all portions of the Work under this Contract.
(b) Labor and Materials. Unless otherwise specifically noted, Developer shall
provide and pay for (subject to provisions herein relating to payment by Lead Agency) all labor,
materials, equipment, tools, construction equipment and machinery, water, temporary heat, heat,
utilities, transportation, and other facilities and services necessary for the proper execution and
completion of the Work. All materials shall be new unless otherwise specified, and all of the
Work will be of good quality, free from faults and defects and in conformance with the Contract
Documents. All work not conforming to these standards will be considered defective. If
required by Owner, and upon its written request therefor made within one (1) year of the Date of
Final Acceptance, Developer shall furnish reasonable evidence as to the kind and quality of
materials and equipment.
(c) Surveys and Easements. ALTA Survey by Parametrix, I. nc has been provided in
accordance with prior Agreements between Lead Agency and Developer.
(d) Taxes. Developer shall pay all sales, consumer, use and other similar taxes
required by law and are included in the price, all as part of the Cost of the Work; provided,
however, that Developer shall be entitled to an adjustment (increase) in the Contract Sum and the
GMP to the extent that an increase in the aggregate amount of such taxes payable by Developer
hereunder results from any change in laws creating such taxes enacted after the date of signing
this Contract.
(e) Permits and Fees. Unless otherwise provided in the Contract Documents,
Developer shall secure all building permits (except environmental permits) and all governmental
building fees and licenses necessary for the proper execution and completion of the Work which
are applicable at the date of this Contract.
(f) Notices. Developer shall give all notices .and comply with all building laws and
regulations. If Developer observes that any of the Contract Documents are at variance therewith
in any respect, it shall promptly notify Lead Agency, in writing, and any necessary changes shall
be adjusted by appropriate modification. In the event that during the performance of this
Contract by Developer there is any change in the applicable building laws and regulations which
Page 10 of 43
are in force as of the date hereof, Developer shall give Lead Agency written notice of such
change promptly after Developer becomes aware of the promulgation of such new law or
regulation. Such notice shall include Developer's estimate of the impact (if any) of such change
on the Contract Time and the Contract Sum;
(g) Superintendent. Developer shall employ a competent superintendent who shall be
in attendance at the project site at all reasonable times during the progress of the Work.
(h) Responsibility of Developer. Developer shall be responsible to Lead Agency for
the acts and omissions of all of its employees and all subcontractors, their agents and employees,
and all other persons while performing any of the Work under a Contract with Developer.
(i) Drawings and Specifications at Site. Developer shall maintain at the site for Lead
Agency one copy of all drawings, specifications, addenda, approved shop drawings, change
orders and other modifications in good order and marked to record all changes made during
construction. These shall be available to Lead Agency. The drawings marked to record all
changes made during construction shall be delivered to Lead Agency within ninety (90) days of
the Date of Final Acceptance..
(j) Cleaning Up. Developer, at all times, shall keep the premises free from
accumulation of waste materials or rubbish caused by its operations. At the completion of the
Work, Developer shall remove all its waste materials and rubbish from and about the project as
well as all of its tools, construction equipment, machinery and surplus materials.
(k) Indemnification. Developer shall indemnify, defend and hold harmless Lead
Agency, its agents and employees, from and against all claims, damages, losses and expenses,
including reasonable attorneys' fees, arising out of or resulting from the performance of the
Work, to the extent and in the percentage caused by any negligent act or Omission of Developer,
any subcontractor, anyone directly or indirectly employed by any of them, or anyone for whose
acts any of them may be liable, and which involves bodily injury, sickness, disease or death, or
injury to or destruction of tangible property (other than the Project itself and its contents),
including the loss of use resulting there from. The Lead Agency shall indemnify, defend and
hold harmless the Developer from and against all claims, damages, losses and expenses,
including reasonable attorney fees ar/sing out of or arising from the Lead Agency's negligence.
(1) Written Notice. Written notice shall be deemed to have been duly served if
delivered in person to the individual or, if delivered by nationally recognized overnight courier
(such as Federal Express) or sent by registered or certified mail, to the following address:
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If to Developer:
Opus Northwest, L.L.C.
915 - 118th Avenue SE, Suite 300
Bellevue, WA 98005
Attention: Harry DeMarre
And
Opus Northwest, L.L.C.
10350 B'ren Road West
Minnetonka, MN 55343
Attention: Brad Osmundson
If to Lead Agency:
City of Bremerton
239 - 4th Street
Bremerton, WA 98337
Attention: Gary Sexton
or at such other address as the parties may hereafter designate by written notice to the other.
(m) Termination of Contract by Lead Agency. If Developer should fail to commence
the Work in accordance with the provisions of the Contract Documents or fail to prosecute
diligently the Work to completion in a diligent, efficient, workmanlike, skillful and careful
manner and in accordance with the provisions of the Contract Documents, or fail, except in cases
of excused delay, to supply an adequate amount of properly skilled workmen or materials or
equipment to complete the Work in accordance with the requirements herein, persisten~tly
disregard laws, ordinances, rules, regulations or orders of any public authority having
jurisdiction, or fail to make prompt payments to its subcontractors, materialmen or laborers, as
required by the appropriate subcontract, except as to claims for payment for material or labor
used in the Work, the validity of which Developer is contesting in good faith by appropriate
action diligently pursued, then Lead Agency shall have the fight, after giving Developer and its
surety, if any, fourteen (14) days written notice (and failure of Developer to cure or commence to
cure with due diligence such matter within 7 calendar days of receipt of said notice), (i)
terminate this agreement, (ii) take possession of and use all or any part of Developer's materials,
equipment, supplies and other property of every kind used by Developer in the performance of
the Work and use such property in the completion of the Work, or (iii) complete the Work in any
manner it deems reasonably appropriate and desirable, including engaging the services of other
parties. Any such act by Lead Agency shall not be deemed a waiver of any right or remedy of
Lead Agency. If after exercising any such remedy, the reasonable cost to Lead Agency of the
performance of the balance of the Work is in excess of that part of the GiMP which has not
theretofore been paid to Developer hereunder, Developer shall be liable for and shall reimburse
Lead Agency for such excess, on demand.
If the unpaid balance of the GMP exceeds the cost of finishing the Work, Developer's share of
such "savi:ngs" shall be paid to Developer in accordance with the provisions of Article 3 hereof.
Page 12 of 43
(n) Termination of Contract by Developer. In the event the
Work is stopped by a public authority which is not the Lead Agency or a member or agency
related to the Lead Agency without the fault of Developer for a period of thirty (30) days, or in
the event Lead Agency breaches any of its material obligations under this agreement and Lead
Agency fails to cure the breach within fifteen (15) days after written notice from Developer,
then Developer may cease all or any portion of the Work and Lead Agency shall be responsible
for all increased costs arising out of such delay, which delay shall be an "excused delay."
Further, in any such event, and irrespective of whether or not Developer ceases all or any portion
of the Work, Developer, after thirty (30) days written notice to Lead Agency and failure of Lead
Agency to remove the default or cure such breach within such thirty (30) day period, may
terminate the Contract, remove any materials, equipment, and tools from the Site, and recover
from Lead Agency payment for all work executed and any loss or damage sustained by
Developer by reason thereof.
Developer and Lead Agency are currently preparing purchase of air space agreements,
covenants, access, easements, and restriction. Additionally Developer and Kitsap Transit are
negotiating a design/build contract for respective construction of the office spaces and the retail
spaces (other than the restaurant.) In the event the parties fail to reach agreement on such
documents on or prior to November 15, 2002, either party may give written notive of termination
of this agreement.
(o) Inspection. Lead Agency and its representative shall at all times have access to
the Work whenever it is in preparation or progress, and Developer shall permit and facilitate
inspection of the Work by Lead Agency, its agents, and public authorities concerned with such
work.
(p) Safety Precautions. Developer shall take reasonable precautions for the safety of
its employees on the Work, and shall comply with all applicable provisions of federal, state and
municipal safety laws to prevent accidents or injury to persons on, about or adjacent to the site of
the Work. Developer shall erect and properly maintain, at all timeR, as required by the
conditions and progress of the Work, reasonable safeguards for the protection of workmen and
the public.
(u) Authorized Representatives. Gary Sexton, of Lead Agency,
shall be Lead Agency's designated representative on the project described in this Conlxact, and
either shall have authority to act or respond on Lead Agency's behalf concerning all matters
which reqtfire Lead Agency's approval, consent, decision or other action under this Contract.
Brian Fyall, Bart Brynestad of Developer, shall be Developer's representative on said project,
and he shall have the authority to act or respond on Developer's behalf concerning all matters
which require Developer's approval, consent, decision or other action under this Contract.
(q) Authority. The respective persons signing this agreement represent and warrant
that they have the power and authority to execute this agreement on behalf of Lead Agency or
Developer, as applicable, and to bind Lead Agency or Developer, as applicable, herein.
Page 13 of 43
3q
ARTICLE 12
TITLES~ EXHIBITS
Titles of articles are used in this Contract solely for the convenience of those examining it
and are not to be resorted to as aids in its construction or interpretation. If any of the provisions
of the exhibits attached hereto or of any of the Contract Documents are inconsistent with the
provisions of this Contract, the provisions of this Contract shall be controlling. The Exhibits
hereto are the following:
Exhibit A -
Exhibit B -
Exhibit C -
Exhibit D -
Exhibit E -
Exhibit F- 1 -
Exhibit F-2 -
Exhibit G -
Exhibit H -
Legal/Schematic Description of Property
Critical Path Schedule
Guaranteed Maximum Price Schedule
Cost of the Work
Reimbursable Costs and Advances
Application for Payment - Reimbursable Costs & Advances
Application for Payment - Non Reimbursable Costs & Advances
Conditional Lien Waiver and Indemnity Against Liens
Design documents
ARTICLE 13
SUCCESSORS
This Contract shall be binding upon and inure to the benefit of the parties hereto and their
respective successors and assigns.
ARTICLE 14
LAW GOVERNING
This Contract shall be interpreted and construed in accordance with the laws of the State
of Washington.
ARTICLE 15
HAZARDOUS SUBSTANCES~ ASBESTOS
Environmental investigations conducted under previous Agreement between Lead
Agency and Developer revealed environmental contamination. Lead agency has contracted
directly with an environmental consultant to provide Phase II investigations, review Phase I
reports, provide summary reports to state agencies, make recommendations for clean up or
capping of contaminants, provide any other investigation or reports required by the State of
Washington Department of Ecology ("DOE"), obtain any required DOE approvals. Lead Agency
shall be directly responsible for all remediation, including the selection of disposal facilities and
signing hazardous waste manifests, and the costs associated with implementing the approved
remedial action plan and contingency plan. Lead Agency agrees to indemnify, defend and hold
harmless Developer and its employees and subcontractors from liability related to the existence
of such hazardous substances at the project site, unless such liability arises out of the negligence
or wrongful acts of Developer or its subcontractors.
Page 14 of 43
ARTICLE 16
OWNERSHIP OF SITE/
DEVELOPMENT PERMITS AND APPROVALS/
RIGHT TO TERMINATE
The Lead Agency covenants that the City of Bremerton and Kitsap Transit are the fee owners of
the land upon which the Work is to be performed, free and clear of all liens and encumbrances, which
might adversely affect the Project or prevent issue of air right title as herein and hereafter provided.
ARTICLE 17
FEDERAL REGULATIONS AND REQUIREMENTS
In both the design and construction of the Work, as it relates to the construction of the
parking garage, Developer shall be responsible for full compliance of the Work with the then
applicable and existing NEPA, Davis-Bacon and Buy America regulations and requirements in
accordance with Developer's current understanding thereof and as currently enforced by the
building code officials in respect to the Work. For all other public structure work, Developer
shall comply with Washington State Prevailing Wage laws.
ARTICLE 18
PRIORITY OF CONTRACT DOCUMENTS
To the greatest extent possible, the various Contract Documents shall be construed
consistently, so as to complement each other. Any inconsistency between any provision of one of
such documents and another shall be resolved, except as otherwise provided therein, by giving
priority to said documents in the following order:
(i)
The Contract (with any exhibits attached) with modifications thereto
of later date having priority of those with earlier dates;
(ii) The Final Plans and Specifications, when approved;
(iii) The Preliminary Plans and Specifications.
The foregoing documents are the Contract Documents.
ARTICLE 19
OTHER AGREEMENTS
Lead Agency and Developer have entered into previous agreements for the design of the
Project. Those Agreements are: Agreement Between the City of Bremerton and Opus Northwest
dated 6th May 2002; Schematic Design Agreement Between the City of Bremerton and Opus
Northwest, LLC dated 19th June 2002; Schematic Design Agreement Modification # 1 Between
the City of Bremerton and Opus Northwest, LLC dated __2002. In addition, the Lead
Agency and Developer will be entering into additional agreements for Purchase of Air Rights for
Page 15 of 43
Private Components of this Project and Other agreements associated with Ownership of Air
Rights.
ARTICLE 20
TIME IS OF THE ESSENCE
Developer and Lead Agency agree that time is of the essence of this agreement.
ARTICLE 21
ENFORCEABILITY
If any provision of this Contract shall be invalid or unenforceable to any extent, the
remainder of this Contract and the application of such provisions to other persons or
circumstances shall not be affected thereby and shall be enforced to the greatest extent permitted
by law.
ARTICLE 23
FINANCING
Prior to February 1, 2003, Lead Agency shall provide to Developer reasonably
satisfactory evidence indicating that it has secured all necessary financing or bonds to pay for all
costs of the project of which the public structure improvements contemplated hereunder are a
part (with all preconstruction and predisbursement contingencies satisfied), said financing to
provide payment to Developer under and according to the terms of this Contract. Owner shall be
responsible for all costs arising out of delays in securing financing or bonds.
Page 16 of 43
37
IN WITNESS WHEREOF, the parties hereto have executed this Contract the day and
year first above written.
a (Developer)
By ~
Its ,
a (Lead Agency )
By
Its
Page 17 of 43
EXItIBIT A
LEGAL / SCHEMATIC DESCRIPTION OF PROPERTY
PARCEL I:
THAT PORTION OF GOVERNMENT LOT 3, SECTION 13, AND THAT PORTION OF GOVERNMENT LOT
1, SECTION 24, AND TIDELANDS ADJOINING, ALL IN TOWNSHIP 24 NORTH, RANGE 1 EAST, W.M., IN
KITSAP COUNTY, WASHINGTON, DESCRIBED AS FOLLOWS:
COMMENCING AT THE MOST SOUTHERLY CORNER OF LOT 1 IN BLOCK 2 OF TOWN OF
BREMERTON, ACCORDING TO PLAT RECORDED IN VOLUME 2 OF PLATS AT PAGE(S) 30, IN
KITSAP COUNTY, WASHINGTON;
THENCE SOUTH 45020'30'' EAST ALONG THE NORTHEASTERLY MARGIN OF FIRST STREET
(FRONT STREET) IN SAID PLAT A DISTANCE OF 14.18 FEET TO THE MOST SOUTHERLY CORNER OF
AN ALLEY DELINEATED ON BLOCK 2 OF SAID PLAT; THENCE NORTH 35o37, 10" EAST 60.00 FEET
ALONG SAID DELINEATED ALLEY TO THE TRUE POINT OF BEGINNING, WHICH IS ALSO CALLED
POINT "A" FOR REFERENCE PURPOSES; THENCE SOUTH 45020'30'' EAST PARALLEL TO THE
NORTHEASTERLY MARGIN OF FIRST STREET (FRONT STREET) TO AN INTERSECTION WITH THE
INNER HARBOR LINE DELINEATED ON 1958 SUPPLEMENTAL MAP OF THE BREMERTON
TIDELANDS, ON FILE IN THE OFFICE OF THE COMMISSIONER OF PUBLIC LANDS, OLYMPIA,
WASHINGTON; THENCE NORTHEASTERLY ALONG SAID INNER HARBOR LINE TO THE
SOUTHWESTERLY
MARGIN OF 2ND STREET AS DELINEATED ON SAID SUPPLEMENTAL MAP;
THENCE NORTHWESTERLY ALONG SAID MARGIN TO A POINT ON THE MOST EASTERLY
CORNER OF THE ALLEY DELINEATED ON BLOCK 2 IN PLAT OF TOWN OF BREMERTON;
THENCE SOUTH 35037, 10" WEST ALONG SAID ALLEY 247.21 FEET TO THE TRUE POINT OF
BEGINNING;
EXCEPT THAT PORTION DESCRIBED AS FOLLOWS:
COMMENCING AT POINT "A" HERETOFORE DESCRIBED; THENCE SOUTH 45020'30" EAST PARALLEL
TO THE NORTHEASTERLY MARGIN OF FIRST STREET 34.02 FEET TO THE TRUE POINT OF
BEGINNING OF THIS EXCEPTION; THENCE NORTH 45°29'10" EAST 14.17 FEET;
THENCE NORTH 35o36'30'' EAST 5.90 FEET TO THE SOUTHWEST CORNER OF AN EXISTING BRICK,
BUILDING; THENCE SOUTH 45020'30'' EAST ALONG THE SOUTHEASTERLY WALL THEREOF 129
FEET; THENCE SOUTH 41 °53'20" WEST 20 FEET, MORE OR LESS, TO THE SOUTHWEST BOUNDARY
OF THE MAIN TRACT HERETOFORE DESCRIBED;
THENCE NORTH 45020'30'' WEST 129.41 FEET, MORE OR LESS, TO THE TRUE POINT OF
BEGINNING.
PARCEL II:
COMMENCING AT A POINT ON THE NORTHEASTERLY LINE OF FRONT STREET, ALSO KNOWN AS
FIRST STREET, EREMERTON, WA§I-IINGTON, WtIICI-I IS SOUTH 45020'30'' EAST A DISTANCE OF 14.18
FEET FROM THE SOUTHEAST CORNER OF LOT I IN BLOCK 2 OF ORIGINAL PLAT OF THE TOWN OF
BREMERTON, ACCORDING TO PLAT RECORDED IN VOLUME 2 OF PLATS AT PAGE(S) 30, IN KITSAP
COUNTY, WASHINGTON; THENCE NORTH 35°37'10" EAST FOR A DISTANCE OF 60 FEET; THENCE
SOUTH 45020'30'' EAST FOR A DISTANCE OF 163.43 FEET TO THE TRUE POINT OF BEGINNING;
THENCE SOUTH 45°20'30" EAST 45 FEET;
THENCE SOUTH 41053 '20" WEST 59.39 FEET, MORE OR LESS; TO THE NORTHEASTERLY LINE OF
SAID FRONT STREET (FIRST STREET);
THENCE NORTHWESTERLY ALONG THE NORTHEASTERLY LINE OF FRONT STREET (FIRST
STREET) 45 FEET;
THENCE NORTH 41053'20'' EAST 59.39 FEET, MORE OR LESS, TO THE TRUE POINT OF BEGINNING;
TOGETHER WITH THAT PORTION OF VACATED FRONT (FIRST) STREET ADJOINING OR
Page 18 0f43
39
ABUTTING THEREON, WHICH UPON VACATION, ATTACHED TO SAID PREMISES BY OPERATION OF
LAW.
PARCEL III:
THAT PORTION OF GOVERNMENT LOT 1, SECTION 24, TOWNSHIP 24 NORTH, RANGE 1 EAST, W.M.,
AND THE TIDELANDS ADJOINING, IN KITSAP COUNTY, WASHINGTON, DESCRIBED AS FOLLOWS:
COMMENCING AT THE MOST SOUTHERLY CORNER OF LOT 1 IN BLOCK 2 OF TOWN OF
BREMERTON, ACCORDING TO PLAT RECORDED IN VOLUME 2 OF PLATS AT PAGE(S) 30, IN
KITSAP COUNTY, WASHINGTON;
THENCE SOUTH 45°20'30" EAST ALONG THE NORTHEASTERLY LINE OF FIRST STREET (FRONT
STREET) 14.18 FEET TO THE TRUE POINT OF BEGINNING;
THENCE NORTH 35o37' 10" EAST 60 FEET;
THENCE SOUTH 45°20'30" EAST 34.02 FEET;
THENCE SOUTHWESTERLY TO A POINT ON THE NORTHEASTERLY LINE OF FIRST STREET
WHICH IS SOUTH 45020'30" EAST 23.69 FEET FROM THE TRUE POINT OF BEGINNING;
THENCE NORTH 45°20'30" WEST 23.69 FEET TO THE TRUE POINT OF BEGINNING;
TOGETHER WITH THAT PORTION OF VACATED FRONT (FIRST) STREET ADJOINING OR
ABUTTING THEREON, WHICH UPON VACATION, ATTACHED TO SAID PREMISES BY OPERATION OF
LAW.
PARCEL IV:
LOTS 8 AND 9 IN BLOCK 2 OF TOWN OF BREMERTON, ACCORDING TO PLAT RECORDED IN
VOLUME 2 OF PLATS AT PAGE(S) 30, IN KITSAP COUNTY, WASHINGTON;
TOGETHER WITH THAT PORTION OF VACATED ALLEY ADJOINING OR ABUTTING
THEREON, WHICH UPON VACATION, ATTACHED TO SAID PREMISES BY
OPERATION OF LAW.
Page 19 of 43
EXHIBIT B
Page 20 of 43
IIII.
Page 21 of 43
~o
Page 22 of 43
EXItlBIT C
GUARANTEED MAXIMUM PRICE SCHEDULE
I. CLARIFICATIONS & ASSUMPTIONS
Ae
DIVISION 1 - Design and General Conditions
1. Final soils report has been reissued. Design and pricing has assumed there will not
be and under slab drainage system but there will be foundation wall and footing
drainage system.
2. We've assumed the southeast comer of plaza can be supported on the existing
piling/pile cap/structural slabs. Pile records from the BTC need to be secured and
reviewed by soils engineer to piles can support new imposed loads.
3. Public Works has indicated that there will not be a requirement for site storm
water detention.
4. We excluded any sanitary sewer encasement on the existing sewer line that runs
through the site.
5. Public Works has indicated that water fire flow for the proposed development is
adequate to serve the project.
6. Public Works has indicated that there is adequate sewer capacity for the proposed
project.
7. Public Works has indicated that coordination and~or plan approval that may.be
required for Washington Avenue (WSDOT jurisdiction), will be coordinated by
Public Works.
8. Public Works has informed us that the easternmost lane on Washington has to be
maintained until a future date when ferry traffic is rerouted. However, design and
pricing assumes long term desired condition, namely, eastern most lane will be
used for two handicapped van parking and planters. In the interim we've created
two handicapped van stalls near the BTC elevator.
9. At the eastem end of Second Street, Public Works is requiting a 90 foot diameter
cul-de-sac with a minimum of 3 parking stalls be provided. A portion of the cul-
de-sac will be located on private property to the north of Second. GMP does not
include costs for work beyond 4'-0" of curb nor purchase of private property to
the north. Pricing for work beyond 4'-0" will be forwarded to Lead Agency as an
additive option.
10. Public Works has confirmed that the list of contaminants that was submitted by
environmental consultant can be discharged directly into existing sanitary sewer
system. We've assumed all temporary dewatering will be routed to existing
sanitary sewer system in lieu of to existing storm sewer system.
11. City of Bremerton zoning code does not recognize 'compact' parking stall size for
this location. Given the urban location and odd geometry of the building, there
must be a variance issued or code modified to allow for +/- 10% of stalls to be
designated as compact with minimum size of 7'-4" by 15 '-0".
12. Present design extends beyond property lines controlled by Lead Agency or
Kitsap Transit. Lead Agency to provide needed easements leases to allow for
Page 23 of 43
present design. Lead Agency to provide Code Official acceptance of design intent
relative to property ownership issues.
13. It is assumed work hours are unrestricted.
14. No waterfi'ont insurances are included.
15. Loading dock entrance and exit shall utilize ferry terminal roadways, as will
deliveries at plaza level.
16. Loading dock and complex traffic routes are not capable of accepting trucks any
larger than 30' box trucks.
17. Parking areas to have clear height (less required utilities) P3 8'- 0", P2 8'~ 0" and
P1 9'- 0".
18. This is a mid point design and design development budget only. Inconsistencies
may exist due to the nature of schematic documents. Opus reserves the fight to
adjust such documents and the information contained there in as clarity and
magnitude are further developed during design development.
19. Opus requires written clarification of any and all specific Federal and Public
funding rules and regulations, which may impact the project administrative efforts
and cost of the work.
20. Adequate lay down area on North side of 2nd Street along the waterfront and atop
ferry deck to be provided by the City.
21. No Federal and State inspections anticipated.
22. Opus to utilize Opus' standard cost schedule programs, forms and documents for
all administrative tasks.
23. Opus shall receive copies of recorded titles of ownership at no cost. Such titles or
lack of titles being accurately recorded shall not impact project in any way.
24. No overtime and/or holiday/weekend work is included.
25. No City utility coordination and/or operation assistance costs may be required.
Such coordination and assistance if required shall be provided at no cost.
26. Construction use of existing parking area under BTC will oc.cur during complete
project construction.
DIVISION 2 - Site Construction
1.We've included a total of 25 fixed bollards and 8 removable bollards
Onsite, final layout to be determined.
2. Plaza hardscape surfaces are included within the budget at $6.50/SF. Final layout
and design ofhardscape will be resolved later.
3. Removal of existing Marina building near entry to boat dock is not included in the
GMP. Removal of any hazardous materials contained within existing Marina
building adjacent to east property line is excluded.
4. We exclude all dump fees or material being removed from site. Hauling of
materials from site is limited to 45 minutes round trip during peak hours.
5. Utilities assessments are excluded from construction budget, see soft costs for
allowances of this work.
6. Traffic control by the City of Bremerton.
7. No improvements to existing board walk and ferry terminal decks are included.
8. Existing sanitary sewer line shall remain as is in place. City shall accept building
adjacent to and above with no additional measures required.
Page 24 of 43
9. Any costs of repairing damage arising fi.om vibration, dewatering and/or
equipment loads are excluded.
10. Grading and repairing of Washington Avenue and 2nd Street to be no more than 4'
outside of proposed new curb line.
11. Foundation system assumed to be a combination of auger cast piles, and spread
footings. No water proofing of S.O.G is budgeted.
12. No obstructions underground other than shown in Alta Survey less demolished
structures as indicated on the City's demolition plans that are to be completed by
others.
13. Permission and easements shall be granted at no cost for any and all required
project elements such as but not limited to tieback anchors, piles, footings, and
sidewalks and under ground utilities.
14. Substructure to be above and adjacent to existing utilities and structures as
indicated.
C. DIVISION 3 - Concrete
1. Super structure anticipated to be non reinforced 4" slab on grade at P3 post
tensioned 7 1/2" concrete decks, P3-P2 and 10" on plaza deck cast in place
concrete shear and perimeter walls and interior columns, and stairs to be metal.
D. DIVISION 5 - Metals
1. Metal railing at plaza are included in the budget, final design to be determined.
DIVISION 6 - Wood and Plastics 1. Vanity tops are assumed as plastic laminate.
2. Casework is assumed to be plastic laminate.
DIVISION 7 - Thermal and Moisture Protection 1. Metal wall panels will be an alternate manufacturer to that is stated in the Outline
Specifications.
2. Assumed floor insulation at conference center will be stickpin fi.om below.
3. Design of conference canopies is incomplete, we've budgeted $88,000.00 for
exterior canopies over double doors from conference center.
G. DIVISION 8 - Doors and Windows 1. Partitions between conference rooms will be horizontal stacking type in lieu of
vertical stacking type.
2. Folding partitions between conference rooms and pre-functions will be horizontal.
3. Finish on doors is clear. Dark stain finish on doors is excluded.
H. DIVISION 9 - Finishes 1. There is no painting of garage ceilings and walls.
2. Special ceilings at pre-function and lobby are budgeted at $10.00/square foot.
Wood slates per outline specification is not in budget.
3. Special ceilings at pre function are budgeted at $17.00/s.f.
4. Quartz flooring in the kitchen is excluded. Kitchen floor is sealed concrete.
Page 25 of 43
5. Painting above wood ceilings is excluded.
DIVISION 10 - Specialties 1. A maximum STC of 50 is included for folding panel partitions.
2. Projection screens are excluded.
3. All appliances with the exception of the kitchen equipment are excluded.
4. Marker boards are excluded.
5. Electrified building sign is excluded.
6. Fencing is included at loading dock
7. We specifically exclude the following: art and office equipment.
J. DIVISION 11 - Equipment
DIVISION 12 - Furnishings 1. All window blinds are excluded.
2. Electric window blinds are excluded.
3. Systems furniture and furnishings are excluded.
4. Lobby furniture is excluded.
L. DIVISION 13 - Special Construction
M. DIVISION 14 - Conveying Systems
N. DIVISION 15 - Mechanical
1. Canopy drains will not be tight lined or piped.
O. DIVISION 16- Electrical
2. Street lights (six total) are included. Fixture type is Cobra type.
3. Voice and data calling or telephone system.
4. Emergency generator will not be provided.
5. No under grounding of existing overhead utilities.
6. No traffic signals.
II. ALLOWANCES
SOFI' COSTS
2. Utility charges and assessments we have included .the following amounts for utility
assessments:
1. PSE (electrical services) - $115,000.00
Offsite trenching & restoration to be by utility.
Page 26 of 43
2. Water, sewer and storm water - $ 10,000.00
o
Gas- $ 35,000.00
Assumes gas line is mn on eastside of project, other wise additional construction
costs may be incurred.
d. Qwest- $ 10,000.00
3. Control gate at ferry terminal entry -
$ 45,000.00
Page 27 of 43
Bremerton Conference Center
Total Project Costs
Soft Costs
Design fees
Survey
Environmental inspection Phase I
Inspection & testing
Permits
Utility charges & assessments
Printing costs
Legal fees
Environmental insurance
Start up costs
Contingency
Subtotal Soft Costs
Opus Fee
WSST on Direct Costs
Subtotal with fee & WSST
Total Soft Costs
Hard Costs
ALL PUBLIC
A~lent of City
$1,252,753
$0
$37,000
$121,144
$184,745
$170,000
$t,500
$0
$0
$0
$70,686
$1,837,828
$1,837,828
Direct costs
$288,454
$15,000
$23,66O
$21,500
$o
$o
$16,850
$15,000
$0
$1,500
$14,323
Total
$396,287
$189,900
$49,828
$636,013
$2,473,841
Construction Costs
General Conditions
Insurance & B& O Taxes
Opus Fee
WSST @ 8.5%
Contingency on Construction
Total Hard Costs
Total Costs
$13,812,504
$1,020,000
$222,488
$1,279,674
$1,388,447
$708,924
$18,432,037
$18,432,037
Total Soft and Hard Costs
$20,905,877
Page 28 of 43
EXHIBIT D
COST OF THE WORK
1. Included Costs. Subject to the Guaranteed Maximum Price and specifically
excluding Costs Not To Be Paid as defined below, the "Cost of the Work" shall mean all costs
necessarily incurred in the proper performance of the Work and paid by the Developer and shall
include the items set forth below:
Amounts due under all consultant agreements, subcontracts, supply agreements and
purchase orders made in accordance with the provisions of this Agreement including
the costs of transportation and storage.
b. Wages and salaries for all labor, including Worker's Compensation insurance,
benefits and taxes as described in subparagraphs i. and m. of this section, including services ~r
senior project managers, project managers, assistant project managers, project superintendents,
field superintendents, assistants to superintendents, engineers, draftsmen, salaried foremen,
timekeepers, accountants, field secretaries, paymasters, clerks, expediters, inspectors, tradesmen,
and such others as may be necessary for the proper conduct of the Work, employed by the
Developer at the Job-site; or at the Developer's home office. The following rates and/or time
commitments are hereby established for the services of Developer management and supervision:
Senior Project Manager, on site or at the Bellevue office, $64.00 per hour, billed at
actual hours worked;
· Project Manager $57.00 per hour, billed at actual hours worked;
· Assistant Project Manager (Project Engineer) $42.00 per hour, billed at actual hours
worked;
Superintendent $64.00 per hour, billed at actual hours worked;
· Assistant Superintendent $64.00 per hour, billed at actual hours worked;
· Accountants $35.00 per hour
· Construction Management Assistant (Field Secretary) $27.00 per hour, billed at
actual hours worked.
The cost (including transportation, storage, operating, maintenance and repair costs)
of all materials, temporary structures, equipment, small tools not owned by workmen
or subcontractors, or supplies purchased for use on the Site.
d. The cost of all rental equipment or materials including any repair and maintenance
costs except normal wear and tear.
Page 30 of 43
Expenses of reasonable traveling by representatives of the Developer incurred in
obtaining or inspecting materials, recruiting labor, or for other purposes applying to
the Work, and by mechanics or laborers and the Developer's staff employees in the
case it is necessary to secure them at a distance from the Site, excluding travel in
Kitsap, Pierce and King County.
The cost of renting real property necessary for storage, job office, or performing any
other part of the Work.
The cost of telephone, computers, printers, software, local area networks ("LAN"),
intemet provider service fees, telegrams, postage, photographs (including negatives)
and similar items, blueprints, transportation and storage charges, surveys, and soil and
other investigations, incurred at the Site.
The cost of protecting, crossing or altering any public utility on, or adjacent to the
Site.
Premiums and any deductibles (other than general liability and worker's
compensation policy deductibles) on all insurance authorized and procured by the
Developer under the Contract Documents.
Fees for all municipal and other permits, licenses and patents and royalties, if any.
The cost of engineering, scheduling, and accounting services, including any costs to
respond to Lead Agency requests.
1. The cost of obtaining and using all utility services.
mo
no
po
Federal, state, municipal and other taxes, and such actual employee benefits, pension,
apprentice training and employment fund contributions as required under the
applicable Union contracts and tax codes; including for salaried employees, all
benefits uniformly applied and actually paid by Developer.
The costs of royalties, damages for infringement on patents, and costs of defending
suits therefore for causes other than the (a) negligence, (b) willful acts intended to
cause harm or injury, or (c) violation of written state, federal, or local law, statutes,
ordinances, or regulations, by the Developer, its subcontractors or their respective
employees, or any subcontractor arising out of construction methods or techniques
required by the Lead Agency shall be added to the Guaranteed Maximum Price.
Premiums and fees for all bonds called for by the Contract Documents and the cost of
bonds required from subcontractor by Lead Agency or Developer.
Other expenses or charges, incurred in the proseCution of the Work and approved by
the Lead Agency.
Page 31 of 43
Overtime premium shall be included in the Cost of the Work and shall be at 1.5 times
the hourly rates set forth in subparagraph, but excluding the Senior Project Manager,
Project Manager, Superintendent and Assistant Superintendent.
Materials, supplies, equipment, temporary heat, light, power, water, freight, and
temporary structures required for proper execution of the Work, maintenance required
for any of such items, and all sales and other taxes related thereto.
So
Incidental supplies and expenses incurred in performance of the Work on Site which
are normally considered expendable,' such as office supplies, files, sandpaper, paint
brushes, lumber crayons, hand lines, etc.
t. Costs of housekeeping, cleanup and debris removal and dump charges.
u. Costs incurred as a result of Federal and State OSHA safety requirements.
v. Costs due to an emergency affecting the safety of persons and/or property located at
the Site.
w. Costs incurred for security or guard service.
The final budgeted estimate for direct Cost of the Work shall include a "contingency"
line item which shall be in an amount totaling 4% of the above, listed Base CosXs.
Such contingency may be used by the Developer for any unanticipated Cost of the
Work, regardless of whether such additional cost accrues to a new or existing budget
cost line item.
2. Costs Not to Be Paid. Except as specifically noted in Paragraph 1, above, the following
costs shall not be reimbursed:
Salaries or other compensation of Developer's personnel normally situated at the
Developer's principal office and branch offices, or for any officer of Developer except
as expressly noted in Paragraph 1, above.
b. Expenses of Developer's Principal and Branch Offices other than the Field Office.
Costs due to the (a) negligence, (b) willful acts intended to cause harm or injury, or
(c) violation of written state, federal, or local law, statutes, ordinances, or regulations,
by the Developer, its subcontractors or their respective employees of Developer, any
subcontractor, anyone directly or indirectly employed by any of them, or for whose
acts any of them may be liable, unless Developer demonstrates that its actions were in
accordance with standard industry practice-and/or the non-compliance related to
requirements which are seldom applied to such work or are subjective in nature.
d. The cost of any item not specifically and expressly included in the items described in
Paragraph 1, above, except with the Lead Agency's prior written approval.
Page 32 of 43
Costs of any fines as imposed by WISHA, OSHA, or other regulatory agency for
violations which occur during performance of the Work, including, without
limitation, all acts and omissions which relate to or arise from the Developer's, its
agents', subcontractors', suppliers' or Materialmen's obligations to provide for and
control over the method, manner and means the performance of the Work, provided;
however, that if the cause or cost of the penalty relates to existing conditions, not
created by the Developer, its agents, subcontractors, suppliers or materialmen or to
the proper performance of the Work in accordance with the Contract Documents and
in accordance with the obligations of the Developer and Lead Agency regarding the
performance of the Work pursuant to the Construction Documents then this exclusion
shall not apply.
f. Costs which would cause the Guaranteed Maximum Price, if any, to be exceeded,
other than Lead Agency approved change orders and allowance items.
3. Cost not included: Developer shall be reimbursed for increases or decreases in tax rates
or rulings occurring after the signing of this Contract by both parties.
Page 33 of 43
EXHIBIT E
REIMBURSABLE COSTS AND ADVANCES
Developer is hereby acknowledged to be authorized agent for Lead Agent for design services
only The Developer shall be responsible for all communications, coordination, review,
supervision and control of such.
1. Design Services Agreements. A. Primary Architect - LMN Architects., 801 Second Ave, Suite 501, Seattle, WA. LMN
B. Permitting services - Rice Fergus Miller, 262 Fourth Street, Bremerton, WA.
C. Landscape architects - McCleod Reckord, 231 Summit Ave. East, Seattle, WA.
D. Surveyor - Parametrix, Inc., 5700 Kitsap Way, Suite 202, Bremerton, WA.
E. Civil engineer - Barghausen Consulting Engineers, 18215 72nd Ave South, Kent, WA.
F. Environmental inspection services - Parametrix, Inc., 5700 Kitsap Way, Suite 202,
Bremerton, WA. As well as, Hart Crouser.
G. Geotechnical consultant - Terra & Associates, 12525 Willows Road, Suite 101, Kirkland,
WA.
H. Structural engineer- Cary Kopczynski & Company, 155 '108th Ave. N.E., Suite 220,
Bellevue, WA.
I. Fire sprinkler design- Patriot Fire Protection, 2707 70th Ave. E, Tacoma, WA 98424.
J. Plumbing design- Stirrett-Johnsen, 5555 Westgate Road N.W., Silverdale, WA.
K. HVAC & controls design-builder- Encompass, 7717 Detroit Ave., SW, Seattle, WA
98106.
L. Electrical design- Valley Electric, 21919 20th Avenue Se, Suite 200, Bothell, WA
98021.
M. Elevator consultant - Elevator Consulting Services, 15600 NE 8th Street, Suite B 1, PMB
14E, Bellevue, WA.
N. Corrosion consultant - Norton Corrosion Limited, 8820 222nd Street SE, Woodinville,
WA. 98072
O. Acoustical Consultant - JGL Acoustics,
P. Construction and testing inspection-
Q.
Lead Agency shall pay for costs directly as part of and within the Guaranteed Maximum Price
for the following services and costs. The Developer shall manage and coordinate the services
listed.
· Plan review and building permits.
· Utility connections (water, storm, gas, power, telephone, cable services).
Page 34 of 43
EXHIBIT F-1
APPLICATION FOR PAYMENT - REIMBURSABLE COSTS & ADVANCES.
INVOICE FOR REIMBURSABLE COSTS & ADVANCES
To:
City of Bremerton
245 Fourth Street
Bremerton, WA 98337
Attn: Gary Sexton
cc: Opus NW Accounting
Job number: 2065.00
Invoice No.: 2065.00-
Invoice Date:
Terms: 30 Days
Re: Bremerton Conference Center
Reimbursable Costs and Advances
For;
1.
2,
Consulting Services per attached spreadsheet.
Reimbursables per attached spreadsheet.
Please remit to:
TOTAL DUE:1
Opus Northwest L.L.C.
915 118th Avenue SE Suite 300
Bellevue, WA 98005
Attention: Bart Brynestad
$0.00
$o
So:J
Page 35 of 43
Page 36 of 43
57
EXHIBIT F-2
APPLICATION FOR PAYMENT z NON REIMBURSABLE COSTS & ADVANCES.
Page 37 of 43
Page 38 of 43
EXHIBIT G
CONDITIONAL LIEN WAIVER
THE UNDERSIGNED ACKNOWLEDGES HAVING RECEWED PAYMENT OF THE SUM OF
DOLLARS AND NO/100_ ($ ) PAID TO DATE FROM CITY OF BREMERTON ("LEAD AGENCY") IN
PAYMENT OF ALL LABOR, SKILL, SERVICES, EQUIPMENT, MATERIALS OR OTHER ITEMS DELIVERED, FURNISHED OR
PERFORMED BY OR THROUGH THE UNDERSIGNED IN THE PERFORMANCE OF WORK OR THE FURNISHING OF LABOR,
SKILL, SERVICES, EQUIPMENT, MATERIALS, OR OTHER ITEMS BY THE UNDERSIGNED, DESCRIBED AS (KIND OF WORK):
[ ] GENERAL [] CONTRACT [ ] OTHER THANCONTRACT
SAID WORK WAS PERFORMED AT OR LABOR, SKILL, SERVICES, EQUIPMENT OR MATERIALS DELIVERED OR FURNISHED
TO THE FOLLOWING PREMISES: First and Washington Conference Center, Bremerton,
THIS INSTRUMENT IS INTENDED TO BE A [ ] PARTIAL [ ] FINAL (CHECK ONE) LIEN WAIVER AND THE
UNDERSIGNED DOES HEREBY WAIVE ALL RIGHTS WHICH MAY HAVE BEEN ACQUIRED BY THE UNDERSIGNED TO FILE A
MECHANIC'S LIEN AGAINST THE AFORESAID PREMISES FOR LABOR, SKILL, SERVICES, EQUIPMENT, MATERIALS OR
OTHER ITEMS DELIVERED FURNISHED OR PERFORMED BY OR THROUGH THE UNDERSIGNED THROUGH THE EFFECTIVE
DATE OF THIS LIEN WAWER. THE UNDERSIGNED DOES FURTHER STATE AND REPRESENT THAT IT HAS FULLY PAID FOR
ALL LABOR, SKILL, SERVICES, EQUIPMENT, MATERIALS AND OTHER ITEMS FURNISHED TO SAID PREMISES AND THERE
ARE NO AMOUNTS UNPAID WITH RESPECT THERETO. THE UNDERSIGNED DOES FURTHER AGREE TO INDEMNIFY, DEFEND
AND HOLD HARMLESS LEAD AGENCY AND ANY OTHER PARTY TO WHOM LEAD AGENCY IS RESPONSIBLE AGAINST ANY
AND ALL CLAIMS OR LIENS WHICH MAY BE MADE OR FILED AGAINST LEAD AGENCY OR THE AFORESAID PREMISES BY
THE UNDERSIGNED, OR BY ANY SUBCONTRACTOR, MATERIALMAN OR OTHER PERSON, FIRM OR CORPORATION
DELWERING, FURNISHING OR PERFORMING ANY LABOR, SKILL, SERVICES, EQUIPMENT, MATERIALS OR OTHER ITEMS BY
OR THROUGH THE UNDERSIGNED IN THE PERFORMANCE OF SUCH WORK BY THE UNDERSIGNED THROUGH THE
EFFECTWE DATE HEREOF.
THE EFFECTIVE DATE OF THIS LIEN WAIVER AND INDEMNITY IS THE __ DAY OF
REF.
OPUS NORTHWEST LLC (CONSTRUCTION)
BY:
TITLE:
DATE:
Page 39 of 43
(o0
EXHIBIT H
DESIGN DRAWINGS
Dwg
Num. I Description
ARCHITECTURAL DRAWINGS
(Issued by LMN Architects)
A000 Cover Sheet
A001 Drawing List
AP201 P1 Parking Level Plan
AP202 P2 Parking Level Plan
AP203 P3 Parking Level Plan
A201 Ground Level Floor Plan
A204 Roof Plan
A210 Partial First Floor Plan
A2.11 Partial First Floor and Mech Mezz Plans
A212 Enlarged Plans - Loading and Marine Services
A301 Extedor Elevations
A302 Site Exterior Elevations
A401 Building Sections
A402 Building Sections
A405 Wall Sections
A406 Wall Sections
A407 Wall Sections
A408 Wall Sections
A409 Partial Building Sections
A503 Stair 3 & 4 Plans and Section
A506 Elevator 1 & 2 Plans and Section
A507 Elevator 3 Plans and Section
A701 Ground Level Reflected Ceiling Plan
A710 Partial First Floor Reflected Ceiling Plan
STRUCTURAL DRAWINGS
(Issued by CKC Structural Engineers)
S201
S202
S203
S204
S205
S210
S311
S312
S321
S331
Level P2 Framing Plan
Level P1 Framing Plan
Level 1 Framing Plan
Level 1 Framing Plan
Office Level 2/Conference Room
Plaza Concrete Stair Framing Plan
Basement Wall Sections
Basement Wall Sections
Pile Cap Plan Details
Grade Beam Elevations and Details
Issue I Rev.
Date Num.
10/22/2002
10/22/2002
9/24/2002
9/24~20O2
9/24/2002
9/24/2002
8/15/2002
10/22/2002
10/22/2002
10/22/2002
9/24/2002
10/22/2002
9/24/2002
9/24/2002
10/22/2002
10/22/2002
10/22/2002
10/22/2002
10/22/2002
10/22/2002
10/22/2002
10/22/2002
8/15/2002
10/22/2002
8/1/2002
8/1/2002
8/1/2002
8/1/2002
8/1/2002
10/22/2002
10/22/2002
10/22/2002
10/22/2002
10/22/2002
Revision
Date
10/22/2002
10/22/2002
10/22/2002
10/22/2002
10/22/2002
10/22/2002
10/22/2002
10/22/2002
10/22/2002
10/22/2002
10/22/2002
10/22/2002
10/22/2002
10/22/2002
Received
Date
10/22/2002
10/22/2002
10/31/2002
10/31/2002
10/31/2002
10/22/2002
10/22/2002
10/22/2002
10/22/2002
10/22/2002
10/22/2002
10/22/2002
10/22/2002
10/22/2002
10/22/2002
10/22/2002
10/22/2002
10/22/2002
10/22/2002
10/22/2002
10/22/2002
10/22/2002
10/22/2002
10/22/2002
10/22/2002
10/22/2002
10/22/2002
10/22/2002
10/22/2002
10/22/2002
10/22/2002
10/22/2002
10/22/2002
10/22/2002
IComments
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Page 40 of 43
LANDSCAPE
(Issued by Macleod Reckord)
L101 Landscape Site Plan
L106 Planting Plan
L108 Irrigation Plan
L109 Irrigation Notes, Legends & Details
L110 Details
Llll Details
L112 Details, Sections & Elevations
IPLUMBING
(Issued by Stirrett Johnson)
PP204 Underground Piping Plan
PP203 P3 Parking Level
PP202 P2 Parking Level
PP201 P1 Parking Level
P201 First Level Plan
P202 Second Level Plan
IKITCHEN
(Issued by Bargreen EIIIngson)
K-1 Kitchen Equipment Plan
K-2 Kitchen Equipment Schedule
MECHANICAL DRAWINGS
(Issued by Encompass)
M0.1
MP2.01
MP2.02
MP2.03
M2.01
M2.04
M3.01
Schedules ~ HVAC
P1 Parking Level Plan - HVAC
P2 Parking Level Plan - HVAC
P3 Parking Level Plan - HVAC
Ground Level Plan - HVAC
Roof Level Plan - HVAC
Details - HVAC
Patriot Fire Protection
(Issued by Patriot)
FP1.0 Cover Sheet
FPI.1 Schematic Riser Diagram
FP2.2 P-1 Parking Level
FP2.3 P-2 Parking Level
FP2.3 P-3 Parking Level
FP3.1 Ground Level - Conference Center
Page 41 of 43
10/22/2002
10/22/2002
10/22/2002
10/22/2002
10/22/2002
10/22/2002
10/22/2002
10/22/2002
10/22/2002
10/22/2002
10/22/2002
10/22/2002
10/22/2002
10/22/2002
10/22/2002
10/22/2002
10/22/2002
10/22/2002
10/22/2002
10/22/2002
10/22/2002
10/22/2002
10/22/2002
10/22/2002
10/22/2002
10/22/2002
10/22/2002
10/22/2002
10/22/2002
10/22/2002
10/22/2002
10/22/2002
10/22/2002
10/22/2002
10/22/2002
10/22/2002
10/22/2002
10/22/2002
10/22/2002
10/22/2002
10/22/2002
10/22/2002
10/22/2002
10/22/2002
10/22/2002
10/22/2002
10/22/2002
10/22/2002
10/31/2002
10/31/2002
10/31/2002
10/31/2002
10/31/2002
10/31/2002
10/22/2002
10/22/2002
10/31/2002
10/31/2002
10/31/2002
10/31/2002
10/31/2002
10/31/2002
10/31/2002
10/22/2002
10/22/2002
10/22/2002
10/22/2002
10/22/2002
10/22/2002
Pdcing Set
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IELECTRICAL J
(Issued by Valley Electric)
EO.O0 Abbreviations, Legend and Drawing List
Fire Alarm Notes Sheet List, Legend and
E0.01 Schedules
E0.10 Site Plan Underground Distribution and Comm.
E0,20 Site Plan Electrical
E1.01 Parking Level P1 Lighting
E1.02 Parking Level P2 Lighting
E1.03 Parking Level P3 Lighting
E1.04 Ground Level Lighl~ng
E2.01 Parking Level P1 Power and Mechanical
E2.02 Parking Level P2 Power and Mechanical
E2.03 Parking Level P3 Power and Mechanical
E2.04 Ground Level Power and Mechanical
E2.07 Mezzanine Level Power and Mechanical
E3.11 Parking Level P1 Fire Alarm
E3.12 Parking Level P2 Fire Alarm
E3.13 Parking Level P3 Fire Alarm
E3.14 Ground Level Fire Alarm
E3.24 Ground Level Secudty System
E3.34 Ground Level A/V Systems
E4,00 Electrical One-Line Diagram
E4.01 Voice/Data Riser Diagram
E4.10 Fire Alarm Riser Diagram
E4.20 Secudty System Riser Diagram
E4.30 AJV System Details and Enlarged Plans
ES.00 Electrical Details
E5.20 Security System Details
(Issued by Barghausen)
1 of 1 Preliminary Grading & Drainage Plan
[OUTLINE SPECIFICATION ]
(Issued by LMN)
24 pages
(Issued by CKC Engineers)
4 pages
SOILS REPORT
(Issued by Terra Associates, Inc.)
Project No T-5132
7/31/2002
7/31/2002
7/31/2002
7/31/2002
7/31/2002
7/31/2002
7/31/2002
7/31/2002
7/31/2002
7/31/2002
7/31/2002
7/31/2002
818/2002
7/31/2002
7/31/2002
7/31/2002
7/31/2002
7/31/2002
7/31/2002
7/25/2002
8/8/2002
7/31/2002
7/31/2002
7/31/2002
7/31/2002
7/31/2002
10/22/2002
11/04/02
10/22/2002
10/22/2002
10/22/2002
10/22/2002
10/22/2002
10/22/2002
10/22/2002
10/22/2002
10/22/2002
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10/22/2002
10/22/2002
8/8/2002
10/22/2002
10/22/2002
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10/22/2002
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10/22/2002
10/22/2002
8/8/2002
10/22/2002
10/22/2002
10/22/2002
10/22/2002
10/22/2002
10/22/2002
10/22/2002
10/22/2002
10/22/2002
10/22/2002
10/22/2002
t 0/22/2002
10/22/2002
10/22/2002
10/22/02
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Page 42 of 43
Page 43 of 43
Final Draft
11/7/2002
PURCHASE AND SALE AGREEMENT
FOR HOTEL PAD
This PURCHASE AND SALE AGREEMENT FOR HOTEL PAD (this "Agreement") is
dated for reference purposes the ~ day of ., 2002, and is by and between TI-iE
CITY OF BREMERTON, a municipal corporation (the "Seller"), and OPUS NORTHWEST,
L.L.C., a Delaware limited liability company ("Buyer").
RECITALS
A. The City of Bremerton and Kitsap Transit, a municipal corporation who acquired
title as Kitsap Transit, Inc., a Washington corporation ("Kitsap Transit") are the owners of land
situated in the City of Bremerton, County of Kitsap, State of Washington as currently shown in
map, Exhibit A-1 and legally described in Exhibit A-2 attached hereto and made a part hereof.
The Seller and Kitsap Transit (collectively, the "Proponents") have entered into an Interlocal
Agreement between themselves.
B. The Proponents desire to develop the Property (as such term is defined in
Exhibit B) into the Conference Center with a conference center, a parking garage, a hotel, a
restaurant and an office/retail building. The Proponents and Buyer have concurrently executed
that certain Design/Build Construction Contract dated ., 2002 (the "Design/Build
Agreement"), wherein the Proponents have hired Buyer to design and construct, on behalf of the
Proponents, the parking garage, the conference center and a plaza, which construction shall result
in the creation of a structural pad for a hotel on the portion of the garage owned by Seller, the
air-rights over which will be sold and conveyed to Buyer, or its assigns, for the construction of a
hotel.
C. Buyer desires to purchase, or assign its rights to purchase, the Hotel Air-Rights
(as such term is defined below) from Seller, upon and subject to all of the terms, provisions and
conditions set forth in this Agreement.
AGREEMENTS
NOW, THEREFORE, for and in consideration of the mutual covenants and conditions set
forth herein, and of other good and valuable consideration, the receipt and sufficiency of which
are hereby acknowledged, Buyer and Seller agree as follows:
1. Definitions. Capitalized terms used in this Agreement shall have the meanings set
forth in Exhibit B attached hereto and made a part hereof.
2. Agreement to Sell and Purchase. Seller shall sell the Hotel Air-Rights to Buyer or
its assigns, and Buyer or its assigns shall purchase the Hotel Air-Rights from Seller, at the price
and on the terms, provisions and conditions hereinafter set forth.
51225\05237L240255.V01 DNL
3. Purchase Price. The purchase price to be paid by Buyer to Seller for the Hotel
Air-Rights (the "Hotel Purchase Price") shall be the greater of (i) Two Hundred Fifty Thousand
and 00/100 Dollars ($250,000.00), or (ii) one-half (1/2) of the purchase price, less commissions,
for Buyer's sale of the Hotel Air-Rights to a third party. At the Hotel Air-Rights Closing, the
Hotel Purchase Price shall be payable by wire transfer or otherwise in immediately available
funds.
4. Conditions Precedent.
(a) Completion of Subdivision and Structural Components. Buyer
contemplates selling its rights to acquire the Hotel Air-Rights to a third-party user, owner or
developer with whom Buyer would contract ("Prospective Client") and that such Prospective
Client would construct and operate a hotel within the conference center within the Hotel Air
Rights ("Intended Use"). Buyer's obligations under this Agreement shall be conditioned upon
Seller performing its obligations under the Design/Build Agreement such that the Hotel
Air-Rights are a separate, legal lot, (ii) a structural pad is constructed under the Hotel Air-Rights
such that a hotel may be built on said structural pad, and (iii) the parties shall have agreed upon
the necessary easements and other related documents to govern the rights and obligations of tl~e
parties in connection with the operation of the Bremerton Downtown Conference Center, which
easements and other related documents shall be agreed upon and attached hereto as Exhibit C.
5. Closing Date. The sale and purchase of the Hotel Air-Rights shall
be closed no later than the date of commencement of construction of the conference center
building (excluding work in the garage) unless said date is declared in accordance with the terms
of the Design Build Contract. At the time of closing, Buyer shall pay Seller half of the purchase
price. At the time of Final Acceptance of the Public parts provided for in the Design Build
Construction Contract, Buyer shall pay the balance of the purchase price provided for in
paragraph 3.
6. Title Insurance; Survey.
(a) The City of Bremerton has delivered to Buyer a title commitment for an ALTA
(1970 Form B) owners title insurance policy issued by the Title Insurer, Commitment
No. 890744-C3 (the "Bremerton Title Commitment"), reflecting fee simple absolute title to the
portion of the Property described therein in the City of Bremerton. Kitsap Transit has delivered
to Buyer a title commitment for an ALTA (1970 Form B) owners title insurance policy issued by
the Title Insurer, Commitment No. 890745-C3 (the "Kitsap Title Commitment"), reflecting fee
simple absolute title to the portion of the Property described therein in Kitsap Transit. The
Bremerton Title Commitment and the Kitsap Title Commitment are herein collectively called the
"Title Commitments". Seller shall have until the public construction componenets are "in the dry",
(excepting the plaza) to cause the General Exceptions of the Title Commitments, Special Exception
Nos. 1-10 of the Bremerton Title Commitment and Special Exception Nos. 1-13 of the Kitsap Title
Commitment to be removed of record and from the Title Commitments. In addition, Seller shall
have until the public construction components are "in the dry" (excepting the plaza) to cause Special
Exception Nos. 11-26 of the Bremerton Title Commitment and Special Exception Nos. 14-25 and
51225\05237~40255.V01 DNL
27 of the Kitsap Title Commitment to either be removed or to be revised or affirmatively insured
over to the extent such exceptions would interfere with Buyer's proposed development of the Hotel
Air-Rights. To the extent Special Exception Nos. 11-26 of the Bremerton Title Commitment and
Special Exception Nos. 14-25 and 27 of the Kitsap Title Commitment may remain under the
preceding sentence, together with any additional title exceptions created pursuant to the
development of the Property as a convention center which do not interfere with Buyer's proposed
development of the Hotel Air-Rights are herein called the "Permitted Exceptions."
Prior to the Buyer's final purchase price payment, at Seller shall cause the Title
Commitment to be amended to provide for extended coverage over all general exceptions
contained in the policy and insuring as separate parcels any easements appurtenant to the
Property with the costs equally divided between the parties.
(b) Prior to the Buyer's final purchase price payment described in Section 5 above,
Seller shall, with the cost and expense equally divided between the two parties, cause a survey
("Survey") of the Property to be prepared by a Licensed and Registered Surveyor reasonably
acceptable to Buyer and shall cause to be delivered to Buyer a plat of such Survey certified to
Buyer, the Title Insurer and Buyer's lender, if any, as having been prepared in compliance with
the Minimum Standard Detail Requirements for ALTA/ACSM Land Title Surveys adopted in
1999 and meeting the accuracy requirements of an "Urban" survey. The Survey shall set forth
the legal description of the Hotel Air-Rights, shall show the location of all improvements,
easements and set-back lines, other restrictions, means of ingress and egress, electric, water,
sewer, gas and other utility lines servicing such Hotel Air-Rights, any encroachments and any
easements on adjacent land, and indicate the area (in square feet) of the structural pads over
which the Hotel Air-Rights will exist. The Survey must also be sufficient to cause the Title
Insurer to delete the general exceptions relating to survey matters.
7. Representations and Warranties of Seller
Seller hereby repre.sents to Buyer that all of the following are true and correct on and as
of the date hereof, shall continue to be tree and correct as of the Closing Date, and shall survive
the Closing and delivery of the deed:
(a) All requisite action has been taken and been obtained by Seller in
connection with the entering into this Agreement and the instruments
referenced herein, and the consummation of the transaction contemplated
hereby. No consent of any administrative or legislative body or other
party is required for the performance of Seller's obligations hereunder.
The individual(s) executing this Agreement and the instruments referenced
herein on behalf of Seller has the legal power, right and actual authority to
bind Seller to the terms and conditions hereof and thereofi This
Agreement and all documents required hereby to be executed by Seller are
and shall be valid, legally binding obligations of and enforceable against
Seller in accordance with their respective terms, subject only to applicable
bankruptcy or similar laws or equitable principals affecting or limiting the
rights of contracting parties generally.
3
51225\05237~240255.V01 DNL
[,7
(b)
(c)
(d)
(e)
(g)
(h)
Seller has not received and, to the best of Seller's knowledge, no
predecessor of Seller has received notice of any violation of any law,
municipal ordinance or other governmental requirement affecting the
Property or the contemplated development of the Property or any portion
thereof.
Seller is not a party to any subsisting agreement, contract or commitment
to sell, convey, let, assign, transfer, provide rights of first refusal or other
similar rights with respect to, or otherwise dispose of, all or any part of the
Property, or any interest therein or occupancy right thereto, other than this
Agreement. Except for this Agreement and the Permitted Exceptions,
neither Seller nor any person or entity claiming by, through or under Seller
has done, suffered or permitted anything whereby any lien, claim or right
of another has been created against the Property, or any portion thereof or
any interest therein.
Seller has no knowledge that any permit, certificate, license or other
similar approval or authorization, other than permits relating to customary
building permits, is required for the sale or development of the Property
under any federal, state or local law, ordinance, rule or regulation, or by
any governmental or quasi-governmental agency having jurisdiction over
the Property, or any portion thereof.
Seller has no knowledge of any existing laws, ordinances or restrictions,
including, without limitation, so-called recapture agreements, which
would prevent or limit the right or ability of Buyer, or its lessees, invitees,
successors or assigns (including, without limitation, any. Prospective
Clients), to develop and use the Property for the Intended Uses otto obtain
any government approvals necessary to develop the Property for the
Intended Uses.
There is no action, proceeding or investigation pending or, to the best of
Seller's knowledge, threatened, against Seller, or with respect to the
Property, or any portion thereof, before any court or governmental
department, commission, board, agency or instrumentality which would
affect the contemplated development of the Property. Seller has no
knowledge of any basis for any such action, proceeding or investigation.
Seller has not received any notice of environmental or health code
violations with respect to the Property, or any portion thereof.
Seller has not received notice of any contemplated special assessments
relating to the Property, or any portion thereof.
51225\05237~240255.V01 DNL
4
(i)
Except as provided in Section 17(g) hereof, no leasing, sales or other
broker's fees or commissions of any nature whatsoever shall be or become
due or owing to any person, firm, corporation or entity whomsoever after
the applicable Closing Date.
(J)
Seller has not stored, transported, discharged or released any Hazardous
Materials, and has not permitted the storage, transport, discharge or
release of Hazardous Materials, on the Property, or any portion thereof.
Further, except as set forth in the Technical Memorandum prepared by
Parametrix dated June 12, 2002 and the reports identified therein, Seller
has no knowledge of any other person or entity having stored, transported,
discharged or released Hazardous Materials on the Property, or any
portion thereof.
(k)
There are no (i) orders from or agreements with any governmental
authority or private party or any judicial or administrative proceedings or
investigations, whether pending or threatened, respecting any
environmental, health or safety requirements under federal, state or local
laws or regulations relating to the Property, or (ii) pending, asserted or
threatened claims or matters involving material liabilities, obligations or
costs arising from the existence, release or threatened release of any
Hazardous Materials at, on or beneath the Property.
The accuracy of the foregoing representations and warranties shall be a condition to
Buyer's obligations under this Agreement. If any of the foregoing representations or warranties
is untrue in any material respect, and is not cured (at no cost to Buyer) prior to any of the
scheduled Closing Dates, then Seller shall be allowed a period of five (5) days after the date o£
such scheduled Closing Date in order to cause such representations and warranties to be true, and
shall use reasonable efforts to do so (and Seller shall notify Buyer promptly if Seller determines
that Seller will not be able to do so). If Seller shall not cause such representations and warranties
to conform to the requirements of this Agreement within such five (5) day period, then Buyer
may elect (x) to purchase the Property as it then is, with the right to cause such non-conforming
representations and warranties to be true and to deduct from the Purchase Price amounts which
Buyer and Seller reasonably agree are equal to the reasonable costs and expenses incurred as a
result thereof and which are of a definite or ascertainable amount; or (y) to terminate this
Agreement (other than the parties' respective obligations under Section 17(g) hereof); or (z) to
extend the time for up to an additional thirty (30) days for Seller to cause such representations
and warranties to conform to the requirements in this Agreement, and the respective Closing
Date shall automatically be extended by the number of days equal to such extended period (and
if Buyer elects to allow the extension of such time, Buyer shall have the same rights concerning
such matters at the end of such extended period as Buyer had at the end of the original period).
Further, if the matter which causes the representations or warranties to fail to conform to the
requirements of this Agreement is a matter which was caused by Seller, or could have reasonably
been anticipated by Seller, then Buyer's rights set forth in the immediately preceding sentence
shall be in addition to, and not in lieu of, any other rights and remedies available to Buyer for
default by Seller and shall include, without limitation, any and all damages, direct and indirect,
5
51225\05237~240255.V01 DNL
which Buyer may suffer as a result of the failure of the representations or warranties to conform
to the requirements of this Agreement.
8. Representations and Warranties of Buyer.
Buyer hereby represents and warrants to Seller that the following are true and correct on
and as of the date hereof, shall continue to be true and correct as of the Closing Date, and shall
survive the Closing and delivery of the deeds:
(a)
There is no action, proceeding or investigation pending, or to the best of
Buyer's knowledge threatened, against Buyer before any court or
govemmental department, commission, board, agency or instrumentality
with respect to the Property, or any portion thereof, or Buyer's obligations
under this Agreement. Buyer has no knowledge of any basis for any such
action, proceeding or investigation.
(b)
All requisite action has been taken and been obtained by Buyer in
connection with the entering into this Agreement and the instruments
referenced herein, and the consummation of the transaction contemplated
hereby. No consent of any creditors, directors, shareholders, judicial or
administrative body, govemmental or quasi-governmental authority, or
other party is required for the performance of Buyer's obligations
hereunder. The individual(s) executing this Agreement and the
instruments referenced herein on behalf of Buyer has the legal power,
right and actual authority to bind Buyer to the terms and conditions hereof
and thereof. This Agreement and all documents required hereby to be
executed by Buyer are and shall be valid, legally binding obligations of
and enforceable against Buyer in accordance with their respectiye terms,
subject only to applicable bankruptcy, insolvency, reorganization,
moratorium laws or similar laws or equitable principals affecting or
limiting the rights of contracting parties generally.
9. Closing.
Provided that all conditions of closing hereunder have occurred, the closing of this
transaction ("Closing") shall occur at the Kitsap County offices of the Pacific Northwest Title
Company on the Hotel Air-Rights Closing Date. On the Hotel Air-Rights Closing Date:
(a)
following:
Seller shall execute and deliver to the Escrow Agent for delivery to Buyer the
(i)
Seller's Statutory Warranty Deed in the form set forth in Exhibit D
attached hereto and made a part hereof, and otherwise in recordable form
sufficient to convey to Buyer fee simple absolute title to the Hotel
Air-Rights, subject only to the Permitted Exceptions;
51225\05237~240255.V01 DNL
(ii)
(iii)
(iv)
(v)
(vi)
(vii)
An Affidavit of Title in customary form as required by the Title Company;
Excise Tax affidavit in the form required pursuant to applicable law, and
the parties shall split the amount of any excise tax;
An estimated seller's closing statement signed by Seller;
A certificate from Seller that all of Seller's representations and warranties
set forth in this Agreement are true and correct as of the Hotel Air-Rights
Closing Date, to the same extent as if the reference date were the Hotel
Air-Rights Closing Date;
A "FIRPTA" Affidavit conforming to the requirements of Section 1445 of
the Internal Revenue Code of 1986, as amended, and the regulations
applicable thereto, and if Seller fails to furnish such FIRPTA Affidavit,
Buyer may withhold from the Purchase Price an amount sufficient to
comply with the provisions of such Section;
Such other documents as may be necessary or proper to comply with this
Agreement or required (by the Title Insurer or otherwise) to carry out its
terms.
(b) Buyer shall execute and deliver to the Escrow Agent for delivery to Seller on the
Hotel Air-Rights Closing Date, the following:
(i)
The portion of the Purchase Price stated above, plus or minus prorations,
by wire transfer or otherwise in immediately available funds;'
(ii)
Excise Tax affidavit, executed by Buyer in the form required pursuant to
applicable law;
(iii) An estimated buyer's closing statement signed by Buyer;
(iv)
A certificate from Buyer that all of Buyer's representations and warranties
set forth in this Agreement are true and correct as of the Hotel Air-Rights
Closing Date, to the same extent as if the reference date were the Hotel
Air-Rights Closing Date; and
(vi
Such other documents as may be necessary or proper to comply with this
Agreement or required to carry out its terms.
10. Prorations; General Real Estate Taxes.
51225\05237x240255.VOI DNL
7
(a) At the Hotel Air-Rights Closing, all utilities shall be prorated as of the Hotel
Air-Rights Closing Date on the basis of the then most recent bills for such utilities; provided,
however, that within thirty (30) days after the actual bill or bills for the applicable period or
periods are available, the parties shall re-prorate each utility on the basis of such actual bill or
bills.
(b) The Property is presently not carried on the tax rolls by reason of the status of
Seller as a municipal entity. The parties shall take all necessary action on and after the Hotel
Air-Rights Closing Date to place the Hotel Air-Rights on the tax rolls and Buyer shall be
responsible for all taxes assessed on and after the Hotel Air-Rights Closing Date.
11. Development Matters.
(a) From and after the date hereof and from and after the Hotel Air-Rights Closing
(this covenant surviving the Hotel Air-Rights Closing and delivery of the deed), Seller shall, at
the request of Buyer and without cost to Seller, cooperate with Buyer (including, without
limitation, joining in the execution of applications) in connection with:
(i)
applications, agreements and approvals relating to zoning, site plan,
subdivision, utility and other development matters, including, without
limitation, all licenses, permits, easements, rights-of-way, and proofs of
dedication necessary to permit the contemplated development of the
Property; and
(ii)
any requirements of Seller or Buyer or any state or federal government, or
any agency thereof, or any public utility, relating to the contemplated
development of the Property, or any portion thereof, in accordance with
the Intended Uses.
(b) Seller covenants that Seller will not make any agreements with, or grant rights to
any other party, governmental or private, which will prevent or limit the right of Buyer, or its
lessees, invitees, successors or assigns (including, without limitation, Prospective Clients), so to
use the Hotel Air-Rights or to obtain any such consents or approvals. The foregoing covenant
shall survive the Hotel Air-Rights Closing and delivery of the deed.
12. Conditions of Closing.
(a) The obligation of Buyer to consummate this transaction is expressly subject to
and contingent upon the occurrence of each and every one of the following:
(i)
Buyer and/or the Escrow Agent, as applicable, shall have received the
items set forth in Section 9(a) hereof.
(ii)
The Title Insurer shall be prepared to issue the Title Policy, dated as of the
Closing Date and showing fee simple title to the Hotel Air-Rights in
51225\05237~240255.V01 DNL
Buyer, subject only to the Permitted Exceptions, and otherwise in
accordance with the provisions of and containing the extended coverage
and the endorsements specified in Section 6 hereof.
(iii)
All representations and warranties of Seller shall be tree and correct as of
the Closing Date.
(iv)
Buyer is satisfied that it has no responsibility for the remediation or
removal of any Hazardous Materials on the Property.
(v) Seller shall have complied with all provisions of this Agreement.
(b) In the event any of the foregoing conditions have not been fulfilled or expressly
waived in writing by Buyer, then in addition to any other remedy available to Buyer, Buyer may
terminate this Agreement by giving written notice to Seller on or before the Hotel Air-Rights
Closing Date.
13. Default.
(a) If this Agreement is terminated by either party the parties shall have the rights and
remedies only, as set forth in the Design Build Construction Contract.
14. Condemnation.
In the event that, between the date of this Agreement and the Closing Date, any
condemnation or eminent domain proceedings are instituted by a governmental entity which has
rights to acquire the Property from Seller and which might result in the' taking of all or any
portion of the Property (except for such portions of the Property as would not, in Buyer's sole
judgment, impair the use of the Property for the Intended Uses), Seller shall immediately notify
Buyer in writing of such occurrence, and thereupon Buyer may elect to:
(a)
terminate this Agreement, in which event all rights and obligations of the
parties hereunder (other than the parties' respective indemnification
obligations under Section 17(g) hereof) shall cease; or
(b)
elect to consummate this transaction and require Seller to deliver to Buyer
a duly executed assignment, in form and substance satisfactory to Buyer,
of proceeds payable as a result of Seller's right to receive any
condemnation award.
Buyer shall have thirty (30) days from the date of its receipt of written notice of such
institution of proceedings within which to exercise its rights under Sections 14(a) or 14(b)
hereof. If the Hotel Air-Rights Closing Date is scheduled to occur within such thirty (30) day
period, the Hotel Air-Rights Closing shall be delayed until Buyer makes such election, and if
51225\05237~240255.V01 DNL
-73
Buyer elects to consummate the transaction, the Hotel Air-Rights Closing Date shall be adjusted
accordingly.
15. Covenants of Seller.
Between the date of this Agreement and the Closing Date, Seller shall:
(a)
Not, without first obtaining the written consent of Buyer, enter into any
contracts or agreements pertaining to the Property, or any portion thereof;
(b)
Comply with all laws, ordinances, regulations and restrictions affecting
the Property, or any portion thereof, and the use thereof;
(c)
Comply with the terms of all mortgages, liens, pledges, leases, licenses,
easements and other similar encumbrances affecting the Property, or any
portion thereof;
(d)
Not create or permit to be created any mortgage, lien, pledge, lease,
license, easement or other similar encumbrance in any way affecting the
Property, or any portion thereof;
(e)
Not commit any waste or nuisance upon the Property, or any portion
thereof;
(f)
Comply with all requirements of the Title Insurer in connection with its
insurance of fee simple title to the Property in Buyer, as required under
Section 6 hereof and elsewhere herein.
16. Notices. Any notice or other communication in connection with this Agreement
shall be in writing and shall be sent by United States certified mail, return receipt requested,
postage prepaid, by nationally recognized overnight courier guarantee next day delivery, by
telecopy or facsimile transmission, or by personal delivery, properly addressed as follows:
If to Buyer:
Opus Northwest, L.L.C.
Suite 300
915 - 118th Avenue S.E.
Bellevue, WA 98005
Attn: Vice President
Facsimile No. (425) 519-6810
51225\05237~240255.V01 DNL
10
If to Seller:
City of Bremerton
239 Fourth Street
Bremerton, WA 98337
Attn: Gary Sexton
Facsimile No.:
All notices shall be deemed given three (3) business days following deposit in the United States
mail with respect to certified or registered letters, one (1) business day following deposit if
delivered to an overnight courier guaranteeing next day delivery and on the same day if sent by
personal delivery or by telecopy or facsimile transmission (with proof of transmission).
Attorneys for each party shall be authorized to give notices for each such party. Any party may
change its address for the service of notice by giving written notice of such change to the other
party, in any manner above specified.
17. Miscellaneous.
(a) This Agreement may be executed in any number of counterparts, each of which
shall constitute an original document.
(b) The Section headings or captions appearing in this Agreement are for
convenience only, are not a part of this Agreement, and are not to be considered in interpreting
this Agreement.
(c) This written Agreement constitutes the entire agreement between the parties and
supersedes any prior oral or written agreements between the parties regarding the Property.
There are no verbal agreements which can or will modify this Agreement, and no waiver of any
of its terms will be effective unless in a writing executed by the parties.
(d) The unenforceability or invalidity of any provisions hereof shall not render any
other provisions herein contained unenforceable or invalid.
(e) Neither this Agreement nor any of the rights contained hereunder may be assigned
by either party without the prior written consent of the other, except that Buyer may assign its
rights under this Agreement to an Affiliate of Buyer without such consent of Seller and Buyer
may, for Closing purposes, assign its rights to buy the Hotel Air-Rights to a Prospective Client.
(f') With respect to real estate brokers:
(i)
Seller represents and warrants to Buyer that Seller has not engaged or
dealt with any broker or other person who would be entitled to any
brokerage fee or commission in respect to the finding, negotiation or
execution of this Agreement or the consummation of the transactions
contemplated hereby. Seller agrees to indemnify, defend and hold
11
51225\05237x24o255.v01 DNL
75'
harmless Buyer, and Buyer's successors and assigns, with respect to any
claim by any person claiming to have been engaged by Seller, or claiming
by, through or under Seller, so as to become entitled to any such fee or
commission.
(ii)
Buyer represents and warrants to Seller that Buyer has not engaged or
dealt with any broker or other person who would be entitled to any
brokerage fee or commission in respect to the finding, negotiation or
execution of this Agreement or the consummation of the transactions
contemplated hereby. Buyer agrees to indemnify, defend and hold
harmless Seller with respect to any claim by any person claiming to have
been engaged by Buyer, or claiming by, through or under Buyer, so as to
become entitled to any such fee or commission.
(g) This Agreement shall be construed and enforceable in accordance with the laws of
the State of Washington, without application of its choice of law rules.
(h) This Agreement shall be binding upon and inure to the benefit of the parties
hereto, and their respective successors and permitted assigns.
(i) This Agreement and the provisions, representations and warranties herein set
forth shall survive the Closing and delivery of the deed.
(j) Time is of the essence of this Agreement.
(k) In the event of a default or breach of the provisions of this Agreement, the
nondefaulting party hereto shall be entitled to recover reasonable costs and attorneys' fees
incurred by the nondefaulting party as a result of such default.
In witness whereof, the parties hereto have caused this Agreement to be executed and
delivered the day and the date first above written.
51225\05237~40255.V01 DNL
12
BUYER:
OPUS NORTHWEST, L.L.C., a Delaware
limited liability company
By:
NBl21e:
Title: Vice President
SELLER:
CITY OF BREMERTON, a municipal
corporation
By: ATTEST:
Name: Name:
Title: Title:
The undersigned is executing this Agreement to acknowledge its obligations thereunder
relating to the construction of the garage to support the Hotel Air Rights and executed easements
and related documents in connection therewith.
KITSAP TRANSIT, a municipal
corporation
By: ATTEST:
Name: Name:
Title: Title:
51225\05237L240255.V01 DNL
13
51225\05237~240255.V01 DNL
14
Final Draft
11/7/2002
EXHIBIT A- 1
Site Map
51225\05237~240255.V01 DNL
7~
Final Draft 11/7/2002
EXHIBIT A-2
Legal Description of City of Bremerton and Kitsap Transit's Properties
51225\05237~240255.V01 DNL
Final Draft 11/7/2002
EXHIBIT B
Definitions
For purposes of this Agreement, the terms hereafter set forth shall have the following
meanings:
(a) Affiliate of Buyer: Affiliate of Buyer shall mean Gerald Rauenhorst
("Rauenhorst"), a trust for the benefit of Rauenhorst and/or members of his family or their issue,
Opus, L.L.C, Opus Corporation or an affiliate or the parent or subsidiary of either of them, or a
partnership or other entity comprised solely of all or some of the above.
(b) Closing or Closings: Closing or Closings shall mean the closing of the sale and
purchase of the Hotel Air-Rights as contemplated by this Agreement.
(c) Design/Build Agreement. Design/Build Agreement shall mean that certain
Design/Build Construction Contract dated ,2002, by and between Seller and Buyer.
(d) Escrow Agent: Escrow Agent shall mean
(e) Final Plans and Specifications. Final Plans and Specifications shall have the same
meaning given such term in the Design/Build Agreement.
(f) Hazardous Materials: Hazardous Materials shall mean any hazardous substances
or hazardous materials, including, without limitation, all substances, the presence of which on
the Property, or any portion thereof, could subject the owner or occupant of the Property, or both,
to civil or criminal penalties or damages, or responsibility for clean-up of such substances,
including, without limitation, any material or substance which is:
(i)
a "hazardous waste", a "toxic waste", a "hazardous substance", a
"toxic substance", an "extremely hazardous waste", a "restricted
hazardous waste", a "chemical substance", or a "hazardous
chemical", as such terms are defined under any environmental
laws, ordinances or regulations goveming or controlling the
Property, or any portion thereof;
(ii)
petroleum or petroleum waste, including, without limitation, crude
oil or any petroleum derived substance or constituent of any such
petroleum substance or waste;
(iii) asbestos or asbestos containing materials;
(iv) polychlorinated biphenyl;
51225\05237L240255.V01 DNL
(v) radioactive material; or
(vi) pesticides.
(g) Hotel Air-Rights. Hotel Air-Rights means the portion of the Property over which
will be constructed a hotel as shown on the Final Plans and Specifications incorporated into the
Design Build Construction Contract, together with all beneficial easement rights necessary to
(i) support a hotel to be constructed within the Hotel Air-Rights, and (ii) operate and maintain
such hotel as an integral part of the proposed development of the Property as a convention
center.
(h) Hotel Air-Rights Closing Date: Hotel Air-Rights Closing Date shall mean, as
specified in Section 5 hereof, the Hotel Air-Rights Closing Date. If a scheduled Closing Date
does not fall on a business day, that Closing Date shall be the next business day thereafter.
(i) Intended Uses: Intended Uses shall mean the intended uses for the Hotel
Air-Rights as specified in Section 4 hereof.
(j) Permitted Exceptions: Permitted Exceptions shall mean those title exceptions
specified in Section 6 hereof.
(k) Property_: Property shall mean:
(i)
those parcels of land more particularly described in
Exhibits A- 1 and A-2 attached hereto and made a part hereof; and
(ii)
the easements and appurtenances and all the estates and rights of
Seller (now or on the Closing Date) in, to and with respect to such
parcel and any and all improvements thereon.
(1) Prospective Client: Prospective Client shall mean any third-party user of the
Property, as specified in Section 4 hereof.
(m) Survey: Survey shall mean the survey specified in Section 6 hereof.
(n) Title Commitments: Title Commitments shall mean the title insurance
commitments specified in Section 6 hereof.
(o) Title Insurer: Title Insurer shall mean First American Title Insurance Company.
(p) Title Policy: Title Policy shall mean the title insurance policies to be issued by
the Title Insurer at the Hotel Air-Rights Closing.
51225\05237~240255.V01 DNL
Final Draft
11/7/2002
Exhibit C
Easements and Related Documents
[To be attached within 30 days of Mutual Acceptance]
51225\05237~240255.V01 DNL
Final Draft 11/7/2002
WHEN RECORDED RETURN TO:
Name:
Address:
City, State, Zip:
Exhibit D
Form of Statutory Warranty Deed
STATUTORY WARRANTY DEED
THE GRANTOR,
consideration, in hand paid, conveys and warrants to
situated in the County of Kitsap, State of Washington:
, for and in consideration of $10.O0 and other good and valuable
the following described real estate,
See Exhibit A attached hereto and by this reference incorporated herein;
Subject to those matters set forth in Exhibit B attached hereto and by this reference incorporated
herein (the "Permitted Exceptions" relating to the above-described property)
Abbreviated Legal Description:
Tax Account No.:
DATED: ., 20
GRANTOR:
51225\05237~240255.V01 DNL
STATE OF WASHINGTON
COUNTY OF KITSAP
I certify that I know or have satisfactory evidence that the persons appearing before me and
making this acknowledgment are the persons whose true signatures appear on this document.
On this day of ., 20___, before me personally appeared
and to me known to be the
and ., respectively, of , ,
the municipal corporation that executed the within and foregoing instrument, and acknowledged the said instrument
to be the free and voluntary act and deed of said municipal corporation, for the uses and purposes therein mentioned,
and on oath stated that they were authorized to execute said instrument and that the seal affixed, if any, is the
corporate seal of said municipal corporation.
WITNESS my hand and official seal hereto affixed the day and year first above written.
Notary Public in and for the State of Washington, residing at _
My commission expires:
[Type or Print Notary Name]
(Use This Space for Notarial Seal Stamp)
51225\05237~240255.V01 DNL
1. SUBJECT:
AGENDA BILL
BREMERTON CITY COUNCIL
EASTPARK QUITCLAIM DEED FOR AGENDA: November 13, 2002
ORIGINATING DEPT: City Attorney's Office
ORIGINATOR: Roger A. Lubovich
DATE SUBMITTED: October 17, 2002
2. CLEARANCES: (Comment on back ifnecessary) 3. EXHIBITS:
QUITCLAIM DEED
FISCAL & BUDGET
CHAIRMAN
APPROVED FOR SUBMITTAL:
COUNCIL PRESIDENT t~'~~ d"~
4. SUMMARY STATEMENT AND REQUIREMENT FOR COUNCIL ACTION:
Federal legislation was passed authorizing the United States of America to transfer the property commonly
known as Eastpark to the City of Bremerton pursuant to Section 2857 of Public Law 106-398. The proposed
quitclaim deed transfers the property to the City.
5. RECOMMENDATION:
Move to authorize the Mayor to finalize and execute a Quitclaim Deed in substantially the same form as
presented between the U.S.A. and the City of Bremerton relating to the City's acquisition of Eastpark.
7. NOTICE OF ACTION:
PULLED [] TABLED
COUNCIL DIRECTIVE:
APPROVED [--]
6. RESPONSIBLE OFFICIAL:
ENFORCEMENT OFFICIAL:
EXPIRATION DATE:
REVIEW DATE:
DISAPPROVED
AMENDE~ C
8. AGENDA BILL NO.: 0 o~, - ~,. [ ~
9. IMPACT OF NON-PASSAGE:
10. IMPACT ON STAFFING, BUDGETS, FACILITIES~ EQUIPMENT OR OTHER RESOURCES:
11. RESEARCH SOURCES:
Filed for Record at Request of: City of Bremerton
When Recorded Return to:
City of Bremerton
239 4th Street
Bremerton, WA 98337
Attention: Kathy McCluskey
Document Title: Quitclaim Deed
Reference Number of Document Assigned or Released: Not Applicable
Grantor's Name: United States of America
Grantee's Name: City of Bremerton
Abbreviated Legal Description: Portions of Blocks 10 & 11 in PLAT OF THE TOWN OF
BREMERTON (Additional legal on pages 1, 2 & 3 of the document)
Assessor's Property Tax Parcel/Account Number:
QUITCLAIM DEED
This Deed is made this day of ,2002, by the UNITED STATES OF
AMERICA, acting by and through the Department of the Navy (herein called "Grantor"), in
favor of THE CITY OF BREMERTON, a municipal corporation of the State of Washington
(herein called "Grantee").
RECITALS
This conveyance of property is made pursuant to the authority granted in Section 2857 of Public
Law 106-398.
CONVEYANCE
Grantor does hereby release, convey and quitclaim to Grantee, and to its successors and assigns,
all Grantor's right, title and interest, together with all alter-acquired title of the Grantor and any
and all rights in abutting streets, in and to the real property and all improvements and personal
property thereon (the "Property"), located in Bremerton, Washington and described in Exhibit
"A" which is attached hereto and incorporated herei~l by this reference, subject to the following
exceptions, reservations, covenants and restrictions:
Easement reserved in Civil Action 347 for public roads, granted April 15, 1941
Eastpark Quitclaim deed 9-17-02 (clean)
Easement to Puget Sound Power & Light Co for a power line, granted Dec. 8, 1942
Easement to the State of Washington for a highway, granted Nov. 3, 1943
Easement to State of Washington for sidewalks, granted April 20, 1944
Easement to Puget Sound Power & Light Co for a power line, granted April 17, 1946
REPRESENTATIONS, COVENANTS AND RESTRICTIONS
1. The Grantor represents as follows: Grantor has performed an Environmental Baseline Survey
(EBS) to examine the property for hazardous substances and has taken appropriate remedial
action resulting in a decision that the property is suitable for transfer, said decision is set forth in
a Finding of Suitability for Transfer (FOST). Copies of the EBS and FOST referred to above
have each been made available to Grantee and are each incorporated herein by reference.
2. ENVIRONMENTAL COVENANT: The United States of America, in accordance with 42
USC 9620(h), hereby covenants and warrants to Grantee, its successors and assigns, that (1) all
remedial action necessary to protect human health and the environment with respect to any
hazardous substance remaining on the property has been taken before the date of this deed, and
(2) any additional remedial action found to be necessary after this date shall be conducted by the
United States of America acting by and through the Department of the Navy. The United States
of America shall have access rights to the property in any case in which remedial or corrective
action is found to be necessary after the date of this deed.
3. In connection with Grantor's covenant made in paragraph 2, the Grantee agrees' on behalf of
itself, its successors and assigns, as a covenant running with the land, that Grantor, and its
officers, agents, employees, contractors and subcontractors, shall have the right, upon reasonable
notice to Grantee, its successors and assigns, to enter upon the Property in any case in which a
response or corrective action is found to be necessary at such Property after the date of this deed.
4. The right to enter described in paragraph 3 shall include the right to conduct tests,
investigations and surveys, including, where necessary, drilling, test-pitting, boring and other
similar activities. Such right shall also include the right to construct, operate, maintain or
undertake any other response or corrective action as required or necessary including, but not
limited to, monitoring wells, pumping wells and treatment facilities. Any such entry, including
such activities, response or corrective actions, shall be coordinated with the Grantee or its
successors and assigns, and shall be performed in a manner which minimizes (a) any damage to
any structures on the Property and, (b) any disruption or disturbance of the use and enjoyment of
the Property. The Grantor shall be responsible, to the extent provided in the Federal Tort Claims
Act, for any personal injury or property damage or claims, suits or penalties related to Grantor's
environmental activities on the property.
Eastpark Quitclaim deed 9-17-02 (clean)
5. GRANTEE by acceptance of this Quitclaim Deed agrees that the Property is conveyed on
an "as is, where is" basis without warranties of any kind either expressed or implied except as
otherwise recited in this Quitclaim Deed.
6. GRANTEE by acceptance of this Quitclaim Deed agrees that GRANTEE shall have and
hold the Property subject to each of the following conditions subsequent, which are for the sole
benefit of THE UNITED STATES OF AMERICA and which shall be binding upon and
enforceable against GRANTEE, its successors and assigns:
(a) GRANTEE shall use the Property, directly or through an agreement with a public or
private entity, solely and continuously for public health, public safety, education, affordable
housing, or public recreation purposes. GRANTOR reserves the right to enter and inspect the
Property and inspect records related thereto to ascertain compliance with terms and conditions of
this covenant.
(b) GRANTEE may abrogate (a), above, as to all or any portion of the Property, by providing
affirmative written notice to GRANTOR of intent to use all or any portion of the Property for a
purpose not specified in (a), above. GRANTEE shall pay to the UNITED STATES OF
AMERICA an amount equal to the fair market value of that portion of the Property to be used for
a purpose not specified in (a) above. The fair market value shall be determined by an appraisal
acceptable to GRANTOR. The effective date of such fair market value shall be the date
GRANTEE affirms its intent to use a portion of the Property for a purpose not specified in (a)
above.
(c) GRANTEE, by acceptance of this Quitclaim Deed, covenants and agrees for itself, its
successors and assigns, that it shall not commence any use of any portion of the Property for a
purpose not specified in (a) above until the full fair market value established pursuant to (b)
above has been paid to and received by GRANTOR.
(d) GRANTEE shall provide GRANTOR with no less than thirty days written notice of intent
to sell, lease, rent, mortgage, encumber, or otherwise transfer any interest in any portion of the
Property for which it has not already paid fair market value to GRANTOR. Such notice shall
include: (1) a description of the portion of the Property or interest therein being conveyed or
otherwise transferred; (2) the identity of the transferee; (3) recital of all consideration being paid
to GRANTEE; and (4) the intended land use(s) of the portion of the Property after transfer.
(e) Notwithstanding the above, in the event Purchaser desires to trade all or a portion of the
Property, Purchaser shall have the right to seek the lawful authority and/or the required approval
from the appropriate source(s) to trade all or a portion of the property for other property of not
less than equal value for use for public health, public safety, education, affordable housing, or
public recreation or to seek other alternatives in lieu, of payment of fair market value, consistent
with federal law. :~
q O Eastpark Quitclaim deed 9-17-02 (clean)
IN WITNESS WHEREOF, THE GOVERNMENT has executed this QUITCLAIM Deed this
day of ,2002
UNITED STATES OF AMERICA
Approved by Cadastral
Dated:
Signed:
By:
ROBERT K. UHRICH
Director, Land Management
Real Estate Contracting Officer
Naval Facilities Engineering Command
For and on Behalf of the
United States of America
Department of the Navy
Approved as to form and Legality
Dated:
Signed:
Jeffrey M. Denson
Counsel
GRANTEE:
The City of Bremerton
By:
CARY BOZEMAN, MAYOR
Eastpark Quitclaim deed 9-17-02 (clean)
STATE OF WASHINGTON
COUNTY OF KITSAP
On this ~ day of 2002, before me personally appeared Robert K. Uhrich,
known or identified to me to be the authorized agent of the United States of America, the
governmental entity that executed the instrument or the person who executed the instrument on
behalf of said governmental entity, and acknowledged to me that such governmental entity
executed the same.
WITNESS my hand and official seal hereto affixed the day and year in this certificate above
written.
Date:
NOTARY PUBLIC in and for the State of
Washington residing at
My commission expires:
PRINT NAME:
Use this space for Notary Seal/Stamp
Eastpark Quitclaim deed 9-17-02 (clean)
CITY ACKNOWLEDGMENT
STATE OF WASHINGTON
COUNTY OF KITSAP
On this day of ,2002, before me, the undersigned, a Notary Public
in and for the State of Washington, duly commissioned and sworn, personally appeared Cary
Bozeman to me known to be the Mayor of The City of Bremerton, the municipal corporation that
executed the within and foregoing instrument, and acknowledged the said instrument to be the free
and voluntary act and deed of said municipal corporation, for the uses and purposes therein
mentioned, and on oath stated that he was authorized to execute the said instrument.
WITNESS my hand and official seal hereto affixed the day and year in this certificate above
written.
Date:
NOTARY PUBLIC in and for the State of
Washington residing at
My commission expires:
PRINT NAME:
Use this space for Notary Seal/Stamp
Eastpark Quitclaim deed 9- ! %02 (clean)
Exhibit "A"
This legal description is based on the survey map dated June 20, 1990
All "Standard Bemtsen Monuments" have Navy logo and are stamped "1990 L.S. 15 661"
Beginning at a found 3" brass disc monument at the center of Section 12, Township 24 North,
Range 1 East, W.M., said center of said Section 12 being approximately at the intersection of the
centerlines of Schley Boulevard and Twelfth Avenue; thence from said TRUE POINT OF
BEGINNING
S 89° 00'16" E a distance of 260.66 feet to a found 7" diameter. Concrete
monument thence
S 02° 01 '25" W a distance of 314.09 feet to a standard Bemtsen monument
thence
S 02° 01 '25" W a distance of 575.25 feet to a standard Bemtsen monument
thence
S 02° 01 '25" W a distance of 410.12 feet to a standard Bemtsen monument
thence
N 88° 27'57" W a distance of 260.63 feet to a standard Berntsen monument
thence
S 02° 01 '25" W a distance of 250.04 feet to a standard Bemtsen monument
thence
N 87° 58'35" W a distance of 139.80 feet to a standard Berntsen monument
thence
N 29° 44'22" W a distance of 77.03 feet to a standard Berntsen monument
Set 1.0 foot back of edge of sidewalk thence
Along a curve with a radial bearing of N 29° 44' 22" W a radius of 427.72' a delta
angle of 08° 28' 14" and an arc length of 63.23' thence
S 68° 43'52" W a distance of 216.26 feet thence
Along a curve with a radial bearing of S 21° 16' 08" E a radius of 431.31' a delta
angle of 36° 22' 15" and an arc length of 273.79' thence
Along a curve with a radial bearing of S 57° 38' 23" E a radius of 651.50' a delta
angle of 20° 00' 17" and an arc length of 227.47' thence
S; 12° 21 '20" W a distance of 105.56 feet thence
Along a curve with a radial bearing of S 77° 40' 53" E a radius of 461.50' a delta
angle of 26° 54' 48" and an arc length of 216.78' thence
S 14° 33'28" E a distance of 72.06 feet thence
Along a curve with a radial bearing of N 75° 26' 32" E a radius of 48.65' a delta
angle of 52° 18' 50" and an arc lengt,h of 44.42' thence
S 23o05'29" W a distance of 43.21 feet thence
S 42° 16'27" W a distance of 57.94 feet thence
N 46° 43'53" W a distance of 336.50 feet thence
N 02° 00'24" E a distance of 343.00 feet to a standard Bemtsen monument
Eastpark Quitclaim deed 9-17-02 (clean)
thence
N 02° 00'24" E a distance of 598.62 feet to a standard Berntsen monument
thence
N 02° 22' 13" E a distance of 374.04 feet to a standard Bemtsen monument
thence
N 02° 22'13" E a distance of 396.49 feet to a standard Berntsen monument
thence
N 02° 22' 13" E a distance of 538.06 feet to a standard Bemtsen monument
thence
S 89° 00"33" E a distance of 599.00 feet to a standard Bemtsen monument
thence
S 89° 00"33" E a distance of 373.17 feet to a found 3"brass disc monument
and the TRUE POINT OF BEGINNING
Said area contains 48.314 acres
And a parcel described in a Statutory Deed from the City of Bremerton filed in the office of the
Kitsap County Recorder in Volume 315 Page 524
The East 30 feet of the following described tract:
BEGINNING at the Southeast comer of the Northeast quarter of the Northwest quarter of Section
12, Township 24 North, Range 1 East ofW. M., thence North 220 feet; thence west 198 feet;
thence South 220 feet; thence East 198 feet to the true point of beginning, containing one acre
more or less, except the thirty feet along South margin thereof for a roadway purposes,
Said area contains 0.13 acres
Subject to the following easements:
Easement reserved in Civil Action 347 for public roads, granted April 15, 1941
Easement to Puget Sound Power & Light Co for a power line, granted Dec. 8, 1942
Easement to the State of Washington for a highway, granted Nov. 3, 1943
Easement to State of Washington for sidewalks, granted April 20, 1944
Easement to Puget Sound Power & Light Co for a power line, granted April 17, 1946
Eastpark Quitclaim deed 9-! 7-02 (clean)
AGENDA BILL
BREMERTON CITY COUNCIL
1. SUBJECT: ORDINANCE NO. /'3/' ~ ~.-~3 ~'
Levying Property Taxes for Collection in 2003
FOR AGENDA OF:
ORIGINATING DEPT:
ORIGINATOR:
DATE SUBMITTED:
I~inance
Dick Saunders
Oct. 11,2002
2. CLEARANCES: ~n~ent of back if necessary)
Dir. Admin. Se~~
City Attor~
Fiscal and Budget ~
Operations ~
3. EXHIBITS:
Ordinance ~ ~ ~.3, ~2>
Schedule of 2002 and 2003 Levies
APPROVED BY COUNCIL PRESIDENT FOR SUBMI'i-rAL:
C~NCIL PRESIDENT ~ ~/'~
4. SUMMARY STATEMENT AND REQUIREMENT FOR COUNCIL ACTION: '
The City's property taxes are levied on an annual basis through passage of an ordinance. The proposed ordinance
will implement a general property tax levy and a voted EMS levy at the statutory rate limit as well as a bond
redemption levy at a rate adequate to provide funds necessary to meet debt service obligations.
8. RECOMMENDATION:
I move to pass on second reading Ordinance No. ~'~.~ levying property taxes for collection in 2003.
9. RESPONSIBLE OFFICIAL:
ENFORCEMENT OFFICIAL:
EXPIRATION DATE:
REVIEW DATE:
Finance Director
Mayor
12/31/03
N/A
PULLED TABLED
COUNCIL DIRECTIVE;
10. NOTICE OF ACTION
APPROVED DISAPPROVED
AMENDED
11. AGENDA BILL NO: L:'~ - '~f ~
2. CLEARANCE COMMENTS:
5. IMPACT ON NON-PASSAGE:
The City will not levy property taxes in FY 2003 and will forego approximately $7 million of revenue in the General
Fund and Bond Fund.
6. IMPACT ON STAFFING. BUDGETS. FACILITIES. EQUIPMENT OR OTHER RESOURCES:
As presented in the 2003 Budget.
7. RESEARCH SOURCE~;
Title 84 RCW and Kitsap County Assessor.
ORDINANCE NO.
AN ORDINANCE of the City Council of the City of
Bremerton, Washington, levying Municipal Taxes on all the
taxable property within the City limits of Bremerton for the year
2002 to be collected in the year 2003.
WHEREAS, the City Council of the City of Bremerton attest that the population
of the City of Bremerton is more than ten thousand; and
WHEREAS, the City Council of the City of Bremerton has properly given notice
of the public hearing held on October 30, 2002, to consider the City's revenue sources for the
City's General Fund budget; and
WHEREAS, the City Council of the City of Bremerton after hearing and duly
considering all relevant evidence and testimony presented, has determined that the City of
Bremerton requires an increase in property tax revenue from the previous year, in addition to that
resulting from the addition of new construction and improvements to property and any increase
in the value of state-assessed property and all allowable levies in order to discharge the expected
expenses and obligations of the City; NOW THEREFORE,
THE CITY COUNCIL OF THE CITY OF BREMERTON, WASHINGTON,
DOES HEREBY ORDAIN AS FOLLOWS:
SECTION 1. That an increase in the regular property tax levy, in addition to the
increase resulting from the addition of new construction and improvements to property and any
increase in the value of state-assessed property, is hereby authorized for the 2002 levy in the
amount of $49,625 which is a percentage increase of 1.0% from the previous year.
SECTION 2. That an increase in the EMS property tax levy, in addition to the
increase resulting from the addition of new construction and improvements to property and any
1
2003 Taxes
increase in the value of state-assessed property, is hereby authorized for the 2002 levy in the
amount of $7,462, which is a percentage increase of 1.0% from the previous year.
SECTION 3. That a property tax levy for debt redemption, as previously
authorized by the voters, at a rate sufficient to provide $1,171,117 needed to meet debt service
obligations in 2003, is hereby authorized for the 2002 levy.
SECTION 4. Severabili_ty. If any one or more sections, subsections, or
sentences of this Ordinance are held to be unconstitutional or invalid, such decision shall not
affect the validity of the remaining portion of this Ordinance and the same shall remain in full
force and effect.
SECTION 5. Effective Date. This ordinance shall take effect and be in force ten
(10) days from and after its passage, approval and publication as provided by law.
APPROVED by the City Council the
PASSED by the City Council the
day of ,2002
day of ,2002
CAROL ARENDS, Council President
Approved this day of ,2002
CARY BOZEMAN, Mayor
ATTEST:
APPROVED AS TO FORM:
KATHLEEN MCCLUSKEY, City Clerk
ROGER A. LUBOVICH, City Attorney
2003 Taxes
PUBLISHED the
EFFECTIVE the
ORDINANCE NO.
day of
day of
R:\LEGAL\Ordinances\Finance\2003 Taxes.ord.doc
,2002
,2002
3
2003 Taxes
23-Oct-02
CITY OF BREMERTON
COMPARISON OF PROPERTY TAX LEVIES
2002 vs 2003
ASSESSED VALUATION:
REGULAR
BOND
2O02 2003 %
1,509,101,899
1,483,385,595
1,568,585,817
1,541,855,859
3.94%
3.94%
59,483,918
58,470,264
TAX PATE ($$/1,000):
O&M
EMS
FIRE BOND
PUBLIC SAFETY BOND
TOTAL
3.3000
0.4962
0.1502
0.0000
3.9464
3.2159
0.4920
0.1487
0.6109
4.4674
-2.55%
-0.85%
-1.03%
100.00%
13.20%
-0:0841
-0.0042
-0.0015
0.6109
0.5210
TAX REVENUE:
O&M
EMS
FIRE BOND
PUBLIC SAFETY BOND
TOTAL
4,962,516
746,249
222,805
5,931,570
5,044,390
758,560
229,207
941,910
6,974,067
1.65%
1.65%
2.87%
100.00%
17.58%
81,874
12,311
6,402
941,910
1,042,498
10/23/02Property tax comparison 101
AGENDA BZLL
BREMERTON CITY COUNCIL
SUBJECT: ORDINANCE NO. g~ ~A'7
SETTING RATES AND FEES FOR WATER FUND
401, WASTEWATER FUND 451, AND STORM
WATER FUND 481 FOR 2003
CLEARANCES: (Comm/~,~~
. ~' ~" Ordinance No.
Director. PW & Util~.~ff~" ~ j ''~ 3.~ EXHIBITS:
Finance Director ~,d'/2~-c~.,,?~,,~..~~
Ci~' Attorney ~
Finance & Budg~t'Comn~~
Operations Comm..~~~ --
ENDORSE _~[]
MAYOR ~
4.
FOR AGENDA OF:
ORIGINATING DEPT: Public Works & Utilities
ORIGINATOR: W. Eugene Sampley, Dir. PW&U
DATE SUBMITTED: Oct. 17, 2002
I/~~N [ ] APPROVED BY COUNCIL PRESIDENT FOR SUBMITTAL:
SUMMARY STATEMENT AND REQUIREMENT FOR COUNCIL ACTION:
An increase in assessments, rates, fees, and charges is required in order to meet the ongoing maintenance, operation,
capital, and debt service needs of the City's Water, Wastewater, Storm Water Utilities. In addition to these
requirements, the increase in the Water Utility. is proposed to reduce future dependency on timber harvest revenues
currently used to supplement the ongoing operation of the Water Utili~', and the Storm Water increase is required to
offset application of Payment-in-lieu-of-Taxes (PILOT) that was not p~'eviously applied to this utility.. Staff
recommends that assessments, rates, fees, and charges for Water Fund 401 and Wastewater Fund 451 as set forth in
Chapter 15.06 BMC be amended effective January. 1, 2003 in accordance with the attached Ordinance No.
8. RECOMMENDATION:
B. Motion to pass ~n~ce No. ~;~ , s~ing assessment, rates, fees, =d charges for Water F~d 401,
W~tewater F=d 451, ~d Sto~ Water F~d 48 lupon second reMmg.
RESPONSIBLE OFFICIAL:
ENFORCEMENT OFFICIAL:
EXPIRATION DATE:
REVIEW DATE:
Finance Dire~or
Finance Director
N/A
N/A
PULLED Il TABLED [1
COUNCIL DIRECTIVE:
10.
APPROVED []
NOTICE OF ACTION
DISAPPROVED []
AMENDED [ ]
11. AGENDA BILL NO.:
2. CLEARANCE COMMENTS:
IMPACT ON NON-PASSAGE:
Sufficient revenues will not be available to provide ongoing operation, maintenance, capital, ' and debt
service requirements of the Utilities. Without the Water rate increase, there would be an exceptional,
unadvisable demand on forest harvest revenues to fund the Water Utili~'. Additionally, application of
PILOT to Storm Water revenues without an offsetting rate increase would have a substantial impact on
this utiliW.
IMPACT ON STAFFING, BUDGETS, FACILITIES, EQUIPMENT AND OTHER RESOURCES:
These rates are required to meet the 2003 budget objectives.
RESEARCH SOURCES:
Chapter 15.06 BMC.
ORDINANCE NO.
AN ORDINANCE amending Section 15.06.015 of the Bremerton
Municipal Code and Appendix A of said Section relating to
assessments, rates, fees and charges for Municipal water,
wastewater and stormwater services.
WHEREAS, the City Council desires to amend the rates, fees and charges
set forth in Appendix A of Section 15.06.015 of the Bremerton Municipal Code; NOW
THEREFORE,
THE CITY COUNCIL OF THE CITY OF BREMERTON, WASHINGTON,
DOES HEREBY ORDAIN AS FOLLOWS:
SECTION1. Section 15.06.015 of the Bremerton Municipal Code is hereby
amended to read as follows:
15.06.015 INCORPORATION AND CPI ADJUSTMENT.
Assessments, rates, fees and charges attached hereto as Appendix A and incorporated
herein by this reference are hereby adopted. ~
In addition to such other changes as may be approved by City Council, commencing
January 1, and in January of each successive year thereafter, the fees, rates and
charges in this section shall automatically be adjusted based upon the Consumer Price Index for
all Urban Consumers (CPI-U), U.S. City Average, as published by the Bureau of Labor Statistics
for the year ending June 30 of the previous year.
S..ECTION2. Appendix A of Section 15.06.014 of the Bremerton Municipal
Code is hereby repealed in its entirety, and there is hereby created a new Appendix A attached
hereto as Exhibit A and incorporated herein by reference.
SECTION& Section 2 of this Ordinance shall be effective January 1, 2003. The
rates currently in effect as set forth in Appendix A of Section 15.06.014 on the date of adoption
of this Ordinance shall remain in effect until January 1, 2003.
SECTION 4. Severabili02. If any one or more sections, subsections, or
sentences of this Ordinance are held to be unconstitutional or invalid, such decision shall not
affect the validit); of the remaining portion of this Ordinance and the same shall remain in full
force and effect.
SECTION $. Effective Date. This ordinance shall take effect and be in force ten
(10) days from and after its passage, approval and publication as provided by law.
APPROVED by the City Council the
PASSED by the City Council the
day of ,2002
day of ,2002
CAROL ARENDS, Council President
Approved this day of ,2002
CARY BOZEMAN, Mayor
ATTEST:
APPROVED AS TO FORM:
KATHLEEN MCCLUSKEY, City Clerk
ROGER A. LUBOVICH, City Attorney
PUBLISHED the
EFFECTIVE the
ORDINANCE NO.
day of ,2002
day of ,2002
RSLEGAL\Ordinances~201M CPI Rates Ordinance.doc
Appendix A
ASSESSMENTS, RATES, FEES, AND CHARGES
EFFECTIVE JANUARY 1, 2003
GENERAL FACILITY FEES
Water (per ERU)
Wastewater (per ERU)
Within Ci~ Limits
2003
$ 244.00
$ 244.00
Outside City Limits
$ 369.00
$ 369.00
FRONT FOOTAGE FEES
Water
Per Front Foot
Off Road Rate $
Wastewater
Per Front Foot $
Off Road Rate $
Properties not included in ULID #327 $
Fronting the sewer main in Northlake Way.
Installed as part of the Kitsap Lake Sewer Extension Project.
$ 20.00
1,000.00
25.00
1,250.00
71.55
$ 30.00
$ 1,500.00
$ 37.50
$ 1,875.00
CONNECTION/INSPECTION FEES
Water
3/4"
1 1/2"
2"
Greater than 2"
Field Inspection Fees
Water main extensions (per foot)
but not less than:
Pump Station
Miscellaneous (per hour)
Wastewater
Lateral Connection at P/L
Lateral Connection at Main
Conveyance Facility Ext. (Per Foot)
but not less than:
Pump Station
Miscellaneous (per hour)
$ 1,496.00
$ 1,500.00
$ 2,326.00
$ 2,427.00
AcmalTime&MaterNls
$ 1.00
$ 400.00
$ 525.00
$ 42.00
$ 42.OO
$ 262.50
$ 1.30
$ 315.00
$ 525.00
$ 42.00
$ 2,244.00
$ 2,250.00
$ 3,489.00
$ 3,640.00
150% of Actual Time & Materials
$ 1.50
$ 600.00
$ 787.50
$ 63.00
$ 63.00
$ 393.75
$ 1.95
$ 472.50
$ 787.50
$ 63.00
lof7
Within City Limits
2003
RETAIL WATER SERVICE RATES
General Service - Monthly Service Charge
Meter Size
5/8 x 3/4 inches $ 5.20
1 inch $ 5.95
1 1/2 inch $ 8.45
2 inch $ 11.35
3 inch $ 21.55
4 inch $ 40.10
6 inch $ 142.30
8 inch $ 519.35
10 inch $ 1,854.25
12 inch $ 6,972.45
Commodity Charge (per HCF) $ 0.75
Fire Protection - Monthly Service Charge
Service Size
1 inch $ 10.30
1 1/2 inch $ 15.50
2 inch $ 20.15
3 inch $ 22.20
4 inch $ 24.20
6 inch $ 30.20
8 inch $ 40.20
10 inch $ 56.35
12 inch $ 80.55
Commodity Charge (per HCF) $ 1.50
- For Useage Other Than Firefighting
Low-Income Senior and Low-Income Disabled Citizen - Monthly Service Charge
Meter Size 5/8 x 3/4"
Base Charge (per account) $ 5.20
Commodity Charge
0 - 10 HCF/Billing No Charge
Over 10 HCF/Billing (per HCF) $ 0.75
Temporar~//Construetion Meter
1" Meter
Deposit $ 100.00
Base Fee (per month) $ 5.95
Set Up Fee $ 78.00
Hydrant meter
Deposit $ 500.00
Base Fee (per month) $ 18.70
Set Up Fee $ 78.00
Equipment Loss/Damage Actual Time & Materials
Commodity Charge (per HCF) $ 0.75
09~side City,, Limits
2003
$ 7.80
$ 8.90
$ 12.70
$ 17.10
$ 32.25
$ 60.25
$ 213.45
$ 779.05
$ 2,781.35
$ 10,458.70
$ 1.125
$ 15.50
$ 23.20
$ 30.20
$ 33.30
$ 36.25
$ 45.35
$ 60.30
$ 84.55
$ 120.80
$ 2.25
$ 7.80
No Charge
$ 1.125
, $ 100.00
$ 8.90
$ 117.00
$ 500.00
$ 28.05
$ 117.00
150% of Actual Time &
$ 1.125
Materials
2 of 7
RETAIL WASTEWATER SERVICE RATES
Monthly Service Charge
Single Family
Base Charge (per account)
Commodity Charge (per HCF)
Duplex on 1 Meter or 2 Bldgs on 1 Meter
Base Charge (per unit)
Commodity Charge (per HCF)
Multiple Family
Base Charge (per unit)
Commodity Charge (per HCF)
Commercial I
Base Charge (per account)
Commodity Charge (per HCF)
Commercial II
Base Charge (per account)
Commodity Charge (per HCF)
Commercial III
Base Charge (per account)
Commodity Charge (per HCF)
Low-Income Senior and Low-Income Disabled Citizen
Base Charge (per account)
Commodity Charge (per HCF)
0 - 5 HCF/Month
Over 5 HCF/Month
Septage Disposal
(Per Gallon of Tank Capacity)
Within City Limits
$ 11.60
$ 3.60
$ 9.20
$ 3.60
$ 9.20
$ 3.60
$ 17.15
$ 3.70
$ 17.45
$ 5.80
$ 17.30
$ 4.75
$ 7.20
No charge
$ 3.60
$ 0.13
Outside City Limits
20O3
$ 13.30
$ 4.15
$ 10.60
$ 4.15
$ 10.60
$ 4.15
$ 19.75
$ 4.25
$ 20.10
$ 6.67
$ 19.90
$ 5.46
$ 8.30
No charge
'$ 4.15
$ 0.13
3of7
Within City Limits
2OO3
Outside City Limits
RETAIL STORMWATER RATES
Monthly Service Charge
Single Family / Duplex
Base Charge (per account) $ 4.50
Exception: Duplex
w/2 Meters (per account) $ 2.50
Multiple Family
Base Charge (per ISU) $ 4.50
Commercial
Base Charge (per ISU) $ 4.50
Public School Districts (per account) $ 4.50
Low-Income Senior and Low-Income Disabled Citizen
Base Charge (per account) $ 2.75
Multiple Family & Commercial Rate Adjustment
Water Quality (per ISU) $ (0.50)
Water Quantity (per ISU) $ (1.50)
Stormwater Penalty
New Multiple Family & Commercial
development without on-site detention
Charge (per ISU) $ 1.00
N/A
N/A
N/A
N/A
N/A
N/A
N/A
N/A
N/A
IMPROPER STORMWATER INFLOW RATES
The following rates are established for Improper Stormwater Inflow, based upon the stormwater ISU
for each lot and adjusted annually on the following schedule: -'
EFFECTIVE DATE RATE
May 1, 2002 25% Stormwater Fee for Property
May 1, 2003 50% Stormwater Fee for Property
May 1, 2004 75% Stormwater Fee for Property
May 1, 2005 100% Stormwater Fee for Property
After May 1, 2005, the Improper Stormwater Inflow Rate will remain at 100% of the Stormwater Fee for a property
unless otherwise modified by the City Council. The fees shall be deposited in the Wastewater Fund (# 451).
40f7
MISCELLANEOUS FEES AND CHARGES
Park Reservation Fee
(non-refundable)
Office Servi~s
Account Maintenance
Past Due Notice
Lien Recovery Charge
Duplicate Bill Charge
Field Services
Pavement Restoration Charge
(refimdable, if assessed and not required)
Asphalt
Concrete
County Road Permit
Wet Tapping (Water Main Only)*
8" and smaller - incl excavation & backfill
8" and smaller - service to property line
8" and smaller - tap only
Greater than 8"
*Does Not Include Pavement Restoration Charge
Fire Hydrant Installation*
*Does Not Include Pavement Restoration Charge
Water Meter Reinstallation
3/4" & 1"
1-1/2" & 2"
3" and greater
Water Meter Reactivation
Water Meter Tampering
Tampering Removal
Tampering Reinstallation
Cross-Connection Control
Inspection
Fire Service - Detector, Meter & MXU
Storz Adapter
Within City Limits
2003
$ 30.00
$ 5.00
$ 2.50
$ 100.00
$ 1.00
$ 800.00
$ 2,300.00
N/A
$ 1,954.00
$ 3,513.00
$ 480.00
Actual Time &Materials
$ 4,003.00
$ 59.00
$ 93.00
Time&Materials
$ 42.00
$ 132.00
Time &Matedals
$ 42.00
$ 310.00
$ 227.00
Outside City Limits
2003
$ 30.00
$ 5.00
$ 2.50
$ 100.00
$ 1.00
$ 1,200.00
$ 3,450.00
Cost
$ 2,931.00
$ 5,269.00
$ 720.00
150% of Actual Time & Materials
$ 6,O05.OO
59.00
$ 93.00
Time & Materials
$ 42.00
$ 132.00
Time & Materials
$ 42.00
$ 310.00
$ 227.00
5of7
,Within City Limits
MISCELLANEOUS (cont'd)
Water Service Turn-off/Turn-on
(Customer Request)
Regular Hours
After Hours
N/C
$ 105.00
Delinquency Notice
$ 10.50
Water Service Tum-offfrurn-on
(Delinquent Accounts)
Regular Hours
After Hours
$ 42.00
$ 105.00
Flow and Pressure Test (Uncertified)
3/4" & 1" meters only
1-1/2" & 2" meters only
Larger than 2"
$ 42.00
$ 84.00
Time&Materials
Utility Plant Locates
Regular Hours
After Hours
Emergency
N/C
$ 105.00
N/C
Meter Test Fee (based on meter size)
3/4" & 1"
1-1/2" & 2"
3" or greater
$ 93.00
$ 150.00
Time&Materials
Engineering Services*
Plan Check Fees
Main Extensions: per foot BUT not less than
(Includes hydrants and appurtenances
and connection to water system)
Pump Stations
Fireline Extension
Irrigation Systems
System Connections
Miscellaneous (per hour)
$ 0.22
$ 210.00
$ 525.00
$ 84.00
$ 84.00
$ 84.00
$ 42.00
* Fees include original review and one resubmittal review.
Additional reviews will be charged at miscellaneous hourly rate (above).
Outside City Limits
20O3
N/C
$ 105.00
$ 10.50
$ 42.00
$ 105.00
$ 42.00
$ 84.00
Time & Materials
N/C
$ 105.00
N/C
$ 93.00
$ 150.00
Time & Materials
$ 0.33
$ 315.00
$ 787.50
$ 126.00
$ 126.00
$ 126.00
$ 63.00
6of7
Within City Limits Outside City Limits
2003 2003
MISCELLANEOUS (eont'd)
Storm Drainage Plan Review Fees **
Preliminary Drainage Plans
Residential Developmem $ 325.00 N/A
Non-Residential Developmem $ 225.00 N/A
Plus per ISU $ 10.00
Final Detailed Drainage Plans
Residential Development (per lot)
0 - 20 Lots $ 35.00 N/A
21 - 50 Lots $ 25.00 N/A
51 - 100 Lots $ 22.50 N/A
100+ Lots $ 20.00 N/A
Minimum Charge $ 250.00 N/A
Non-Residential Development
per ISU $ 20.00 N/A
Minimum Charge $ 300.00 N/A
Resubmittal Fees
First Resubmittal No Charge N/A
Subsequent Resubmittal $ 250.00 N/A
Storm Drainage Inspection Fees **
Residential Development (per lot)
Non-Residential Development (per ISU)
Minimum Charge
Conveyance Fac. Ext. (per foot)
Minimum Charge
Unscheduled Inspections* (per site visit)
$ 15.00 N/A
$ 15.00 N/A
$ 150.00 N/A
$ 0.75 N/A
$ 300.OO N/A
$ 42.00 N/A
*(Unscheduled inspections shall be tracked through the course of a project and billed after the final site
inspection. Fees for unscheduled inspections shall be paid prior to final occupancy approval.)
** Does not apply to single family residence or duplex construction on an existing established lot.
7 of 7
AGENDA BILL
BREMERTON CITY COUNCIL
1. SUBJECT: PUBLIC HEARING ON
ORDINANCE REPEALING THE DOWNTOWN
WATERFRONT URBAN RENEWAL PLAN AND
AMENDING THE ZONING CODE
ESTABLISHING THE DOWNTOWN DISTRICT
2. CLEt4RANCES: (Commenfon back if necessary) 3. EXHIBITS:
CcH-RtS/ft'L~ ~~~_ ~mmu~ty Development
~'R~t JUBOAVICH, CityAttomey
FISCAL & BUDGET CHAIRMAN
O~P E~L~Ti'-O~lq~ CHAIRMAN
ENDORS~.E~T [-~ ~~,MATION [-]
MAYORL,,.,,~ ~ '""'-'-'.~
FOR AGENDA: Nov. 13 and Nov. 20, 2002
ORIGINATING DEPT: City Attorney's Office
ORIGINATOR: Roger A. Lubovich
DATE SUBMITTED: Oct. 22, 2002
PROPOSED ORDINANCE
APPROVED FOR SUBMITTAL:
COUNCIL PRESIDENT f'~-"~-4~
4. SUMMARY STATEMENT AND REQUIREMENT FOR COUNCIL ACTION:
The current provisions o£ the Zoning Code set forth in Chapter 21.02 BMC provide that downtown
development standards be regulated by the Downtown Waterfront Urban Renewal P!an (DWURP), which is
outdated and not conducive to development o£the Downtown District. The proposdd ordinance repeals
DWURP and adds a new section to the Zoning Code relating to the Downtown District.
5. RECOMMENDATION:
Move to approve the proposed ordinance on first reading.
Move to pass Ordinance No. on second reading.
7. NOTICE OF ACTION:
PULLED [i] TABLED [~]
COUNCIL DIRECTIVE:
RESPONSIBLE OFFICIAL: Director of Community Development
ENFORCEMENT OFFICIAL: Director o£ Community Development
EXPIRATION DATE: n/a
REVIEW DATE: fda
APPROVED [~ DISAPPROVED ~-~
AMENDEDqDC:
8. AGENDA BILL NO.:
9. IMPACT OF NON-PASSAGE:
10. IMPACT ON STAFFING~ BUDGETS, FACILITIES~ EQUIPMENT OR OTHER RESOURCES:
11. RESEARCH SOURCES:
ORDINANCE NO.
AN ORDINANCE of the City Council of the City of
Bremerton, Washington, repealing the Downtown Urban Renewal
Plan (DWURP) as adopted in Ordinance No. 4187; amending
Chapter 21 of the Bremerton Municipal Code by adding a new
section, Section 21.02.152, entitled "Downtown District";
amending Section 21.02 Appendix, Figure 120 relating to the
downtown Urban Renewal District and design review; amending
the Zoning Map and the Appendix to Chapter 21.02 BMC by
establishing the Downtown Core (DC) and Downtown Waterfront
(DW) zones and designating the same Appendix Figure 152(a);
and further amending the Appendix to Chapter 21.02 by adding a
Height Map as Appendix Figure 152(b).
WHEREAS, pursuant to Resolution No. 1730, the City Council declared
that area generally described as from the Puget Sound Naval Shipyard north to 6th Street
and from Warren Avenue east to the shoreline of the Washington Narrows in the City of
Bremerton to be a blighted area; and
WHEREAS, the City Council, in 1986, passed Resolution No. 2117
confirming and reaffirming Resolution No. 1730 and directed the Mayor and his staff to
prepare an urban renewal plan and project for that area bound by WashingtOn Street on
the west, the Outer Harbor line on Sinclair Inlet on the east, Puget Sound Naval Shipyard
on the south, and the northerly line of Fifth Street extended easterly as a "Blighted Area"
as described in RCW Chapter 35.80; and
WHEREAS, pursuant to Ordinance No. 4187, the City Council adopted
Downtown Waterfront Urban Renewal Plan (DWURP) based upon findings in a report
by William B. Reems, C.C.I.M., C.R.B., C.R.S., Senior Certified Appraiser, that the
downtown waterfront area west of Washington Avenue between the Puget Sound Naval
Shipyard and the Manette Bridge to be in a state of blight; and
WHEREAS, the current provisions of the zoning code set forth in Chapter
21.02 BMC provides that downtown development standards be regulated by the
1
Downtown District
Downtown Waterfront Urban Renewal Plan (DWURP) as adopted by Ordinance No.
4187; and
WHEREAS, the City Council desires to repeal the Downtown Waterfront Urban
Renewal Plan and amend the Zoning Code to allow development of the Downtown District in
accordance with new development standards and regulations; NOW THEREFORE,
THE C1TY COUNCIL OF THE CITY OF BREMERTON, WASHINGTON,
DOES HEREBY ORDAIN AS FOLLOWS:
SECTION 1. The recitals set forth above are hereby incorporated as if set forth
herein in full.
SECTION 2. The Downtown Waterfront Urban Renewal Plan (DWURP) as
adopted in Ordinance No. 4187 and as currently in effect is hereby repealed in its entirety.
SECTION 3. There is hereby created a new section, Section 21.02.152 of the
Bremerton Municipal Code entitled "Downtown District" to read as follows:
21.02.152 DOWNTOWN DISTRICT.
(a) Zones (See Map of Zone Districts, Figure 152(a).)
(1) Downtown Core (DC)
(i) Purpose: To focus commercial, entertainment, cultural, civic uses
and urban residential into an intense, compact, walkable area served by public transit.
(ii) Allowable Uses:
ao
g.
h.
i.
commercial, financial, retail
eating and drinking establishments
professional and medical offices
entertainment, museum, and cultural
government and education
residential and hotel
religious institutions
parks and open space
structured parking
2
Downtown District
(2)
(iii)
Prohibited Uses:
ao
industrial uses
drive-through uses
motor vehicle sales, service, repair or washing
storage of equipment and materials
adult entertainment
work release facilities
commercial surface parking lots, not serving a permitted
use
Downtown Waterfront (DW)
(i) Purpose: To provide for an array of uses related to the water,
multi-modal transportation facilities, view corridors, public access and residential.
(ii) Allowable Uses:
retail, including marine retail
eating and drinking establishments
hotel
residential
transportation facilities
parks and open spaces
structured commercial parking with other permitted use
(iv)
Prohibited Uses:
a. same as downtown core, plus
b. boat sales, storage and repair
c. stand alone commercial parking not serving a permitted use
(b) Development Standards
District Floor Area Ratio
(FAR) = (Floor area/Lot area)
Base W/Amenities Maximum Parking View
Non- Res Non- Res Building Height (stalls/lc gsf) Corridor
Res Res Min Max
DC 1 2 3 6 See Figure 152(b) 1 4 N/A
DW .5 1 1 2 See Figure 152(b) 1 3 See Table
3.2 of the
Shoreline
Master
Program
3
Downtown District
Notes:
Floor Area Ratio (FAR) is the amount of floor area within a building as a multiple of the lot
area. Floor area is measured to the inside face of the exterior building walls. Calculation of
FAR can exclude the following: - spaces below grade
- space devoted to parking
- mechanical spaces
- elevator and stair shafts
- space used for retail uses or restaurants that front the sidewalk
- space devoted to Special Amenities
- exterior decks open to the air.
The FAR for non-residential uses and residential uses within a given development are
individually calculated for each use and may be added together for a combined maximum,
provided that the maximum allowable FAR for each use is not exceeded.
(Example: A project that includes Special Amenities may have a total FAR of 6, with 2 in
commercial use and 4 in residential use.)
For the Downtown Core district, new development shall have a minimum FAR of 1.
Maximum Building Height excludes: - parapets
- mechanical penthouses and elevator overruns and machine rooms
- roof forms and decorative elements not intended for occupancy
The first 3,000 sf of ground floor retail uses are exempted from parking requirements.
For residential uses, the minimum parking requirement is .5 per 1000 sf.
For purposes of this code, hotels shall be considered residential uses.
(c) Design Standards Applicable to All Development Within Downtown
(1) All roof-top mechanical equipment shall be screened by either a high
parapet or a stepped or sloped roof form that is a part of the architecture of the building and is at
least as high as the equipment being screened. Fencing is not acceptable.
(2) Street trees shall be provided with no fewer than 4 trees per 100 If of
frontage. Tree grates shall be used to cover the planting pits. Where existing areaways or vaults
prevent this form of planting, trees shall be planted in planters equipped with irrigation. All trees
shall have a minimum caliper of 2 V2" at the time of planting.
4
Downtown District
(3) Surface parking lots, if they abut public sidewalks, shall provide a
perimeter landscaping strip containing a combination of trees (with no fewer than 3 trees per 100
linear feet of frontage), and shrubs. Masonry walls no lower than 15" and no higher than 30"may
be substituted for shrubs.
(4) For parking lots containing more than 20 stalls, at least 15% of the interior
area shall be planted with trees and shrubs. All trees shall have a minimum caliper of 2 ½" at the
time of planting. Pedestrian walkways from adjacent sidewalks shall be provided.
(5) The street-facing, ground-level facades of parking garages shall be
designed to screen the view of parked cars. Where commercial or residential space is not
provided to accomplish this, features such as planters, decorative grilles, or works of art shall be
used.
(6) Any sidewalk level facade that faces any downtown street shall have at
least 35% of the facade area in transparent glass windows.
(7) Any faqade facing a public sidewalk shall incorporate more refined
materials such as stone or brick and details such as pilasters, plinths, brackets, or belt courses on
at least the first floor.
(8) Buildings taller than four stories shall display a visually distinctive roof
design with features such as a sloping or peaked form, projecting cornice, or upper level
stepback.
(9) All development along any Primary Pedestrian Street (First, Second,
Burwell, Fourth, Fifth, Pacific, and Park shall meet the following standards:
(i) Building facades shall abut the sidewalk. However, entrance areas
may be recessed. Furthermore, buildings may be set back to accommodate Exterior Public
Spaces conforming to the provisions in Section IV.
(ii) At least 50% of the linear, sidewalk level frontage of any structure
shall consist of, or are adaptable to, retail, restaurants, cultural or entertainment uses, financial
institutes, office, indoor public spaces, or art galleries.
(iii) At least 75% of the frontage shall include weather protection in the
form of a flat or sloped canopy, projecting at least 5 feet over the sidewalk.
(e) Amenities Required to Achieve the Maximum Floor Area Ratio
5
Downtown District
In order for a development to achieve the maximum allowable Floor Area Ratios for
indicated in the Development Standards table, Special Amenities must be provided. In return for
incorporating any feature on the following list, the maximum FAR shall be allowed. The design
of each feature will be reviewed to ensure that it is appropriate for the proposed location and
provides for a public benefit.
Exterior Public Space that is at least 10% of the site area and includes the
(1)
following features:
- seating in the amount of one sitting space for each 100 sf of area.
- trees and other plantings
- art or water feature
- solar exposure during the summer
- access and visibility from the nearest sidewalk
(2)
Public Benefit Use consisting of at least one of the following:
- meeting room(s) available to the public
- day care
- museum
- performing arts theatre
(3) Work of Art or Water Feature in a location that is visible to the public at
all times. A work of art consists of an original, artist-produced creation such as:
- murals
- sculptures
- paintings
- inlays
- friezes
- mosaics
- tile work.
There may be more that one artwork or water feature, so long as the cost of the item(s) is
equivalent to at least 1% of the construction cost of the building.
SECTION 4. Bremerton Municipal Code Section 21.02 Appendix Figure 120
relating to Urban Renewal District and Design Review Overlay as set forth in Title 21 Appendix 15-
18 is hereby amended to read as set forth in Exhibit A attached hereto and by reference incorporated
herein.
6
Downtown Distm'et
SECTION 5. The zoning map of the City of Bremerton and the Appendix to
Bremerton Municipal Code Chapter 21.02 BMC are hereby amended by establishing the
Downtown Core (DC) and the Downtown Waterfront (DW) zones designated as Appendix Figure
152(a) as set forth in Exhibit B attached hereto and by reference in incorporated herein.
SECTION 6. The Appendix to Bremerton Municipal Code Chapter 21.02 is
hereby amended by adding a Height Map designated as Appendix Figure 152(b) as set forth in
Exhibit C attached hereto and by this reference incorporate herein.
SECTION 7. Severabili~. If any one or more sections, subsections, or
sentences of this Ordinance are held to be unconstitutional or invalid, such decision shall not
affect the validity of the remaining portion of this Ordinance and the same shall remain in full
force and effect.
SECTION & Effective Date. This ordinance shall take effect and be in force ten
(10) days from and after its passage, approval and publication as provided by law.
APPROVED by the City Council the
PASSED by the City Council the
day of ,2002
day of ,2002
CAROL ARENDS, Council President
Approved this day of ,2002
CARY BOZEMAN, Mayor
ATTEST:
APPROVED AS TO FORM:
KATHLEEN MCCLUSKEY, City Clerk
ROGER A. LUBOVICH, City Attorney
7
Downtown District
PUBLISHED the
EFFECTIVE the
ORDINANCE NO.
day of
day of
R:kLEGAL\Ordinances\Community Development'~Downtown District.doc
,2002
,2002
8
Downtown District
i
ZONES I Description/Intent ]Min. Standards
Sp~i~c controls ~d development
requirements for this zone are
Downtown contMn~ in Set,on 2 ] .02. ] 5
CoFe "Downtown Distdct."
~ r .... , ~:g- ~..: ..... k~,, ,.u~ ~1~ (~xxrt rap, ad~k~o= t0 '~e S~t: Pla= RevUe-::
~.~o~ ky *k~ ~D~ k .... ~,
ck~nge: may be a: major a: tho
..... w~ as a ,~ w s:~, awn:ng or ~mnt.
UW specific controls ~d development
requirements for ~s zone ~e
Downtown contained in Section 21.02.152 entitled
Waterfront "Downtom District."
gPO This zone provides for the development of Std: Must meet City's adopted
Li~ted P~hng co~ercial ~d commuter parhng 1o~ in ~as found to be p~king lot development
suitable for those uses, but not ~ed by ~e underlying zone. st~d~ds.
Overlay Application: Special Use Petit required for ~1 lots.
~e provisions of ~s ~stfict ~ li~ted to ~ shown on the
Bmmemon ~ning Map ~ "Li~ted P~ng Overlay" and ~e ~low~ Lots:
intended to supplement the provisions of the underling zone.
Pe~tted U~s: Cl~s "A" lot (S~cial Use Per, t)
1. Surface p~ng lots for off-s~t p~k~g.
2. Accesso~ hcilities necess~ for ~e pro~r function or desi~ Class "C" 1o~ may also be approv~
of the lot, including p~hng meters, insmctionaFdimctionai by SUP, subject to addition~ criteria
signing, fencing, ~d l~d~aping, and a time li~t of no longer th~ five
Development Standards: years fromdate of approval. Applic~t
1. ~ts shall ~ only for the p~ng of vehicles in ~ly use and then has the option to:
shall not include commercial vehicles, impound lots, or other
storage.
2. ~ts must be develo~d in accord~ce ~th ~e City's Class (a) Apply for time extension
"A" p~hng lot st~d~ds, unless approved ~ a "commuter as ~ amendment to the S~;
p~ing lot". (b) Apply for a SUP for a
3. A Class "C" commuter lot may be approved if: perm~ent Class "C" paved
(a) It is provided for long-tern commuter p~hng by visitors, lot; or
employees, fer~ commutem, or si~l~ co~uters. (c) Cease the use ~d remove
(b) It will not be used for custo~r or client p~ng or o~her ~1 improvements from the site.
non-p~ng l~d use.
(c) P~hng fees will be ch~ged by the day, week, mon~ or
other ~dod which, in no case, my be sho~er th~ 8 houm
.(d) It will ~ fenced or othe~ise secured.
4. A Class "C" lot ~y be approved with a gravel or simil~
surface only if:
(a) ~e need is tempor~ ~d for a ~dod not longer th~ five
I z3
Downtown District- Exhibit A
ZONES I Description/Intent [Min. Standards
years; and/or
(b) The proposed site is in a transitional area and will likely be
needed for new development or a different use within 5 years.
Title 21 Appendix: Page 15-18
[ ~,~ Downtown District - Exhibit A
Downtown District Zonin,
EXHIBIT B
Ordinance #
Appendix Figure 152(a)
PUGET SOUND
NAVAL SHIPYARD
Legend
DW: Downtown Waterfront
DC: Downtown Core
Downtown District Building Heights
EXHIBIT C
Ordinance #
Appendix Figure 152(b)
6TH
5TH
4TH
2ND STREET
il
C
PUGET SOUND
NAVAL SHIPYARD
IAREA A: 100 Foot Height LimitaUon
AREA B: 70 Foot Height LimitaUon
AREA C: 70 Foot Height Limitation, See Special Consid~
The overall height limit is 70 feet as measured pursuant to Bremertor
that in no case at any point shall a structure be more than'
~t the site's front property line (edge of right-of-way). The added he
Chapter 8 Definitions,~eight, and WAC 173-27-030 (9),
~s plus five feet above th~.elevation of Washington Avenue
roof structure shall be ex~ded from the height detierminati.
.
AGENDA BILL (~
BREMERTON CITY COUNCIL
1. SUBJECT: PUBLIC HEARING ON FOR AGENDA: Nov. 13 and Nov. 20, 2002
ORDINANCE AMENDING THE SHORELINE ORIGINATING DEPT: City Attorney's Office
MASTER PROGRAM RELATING TO ORIGINATOR: Roger A. Lubovich
DOWNTOWN DEVELOPMENT REGULATIONS DATE SUBMITTED: Oct. 22, 2002
2. CLEARANCES: (Comment on back if necessary)
CHR¥S I4UG0[, ISii'ec o~' of Community Development
ROGER A. LUBOVICH; City Attorney
FISCAL & BUDGET CHAIRMAN
O-PE TfO s CHAIRMAN
ENDORS E~_ _[~] "~
MAYOR a- ION []
3. EXHIBITS:
PROPOSED ORDINANCE
APPROVED FOR SUBMITTAL:
COUNCIL PRESIDENT
4. SUMMARY STATEMENT AND REQUIREMENT FOR COUNCIL ACTION:
The current provisions of the Bremerton Shoreline Master Program provide that downtown waterfront site
development standards be regulated by the Downtown Waterfront Urban Renewal Plan. A companion
ordinance the Downtown Waterfront Urban Renewal Plan. The proposed ordinance amends the Shoreline
Master Program to allow development of the downtown waterfront in accordance with new development
standards and regulations.
5. RECOMMENDATION:
Move to approve the proposed ordinance on first reading.
Move to pass Ordinance No.
__ on second reading.
7. NOTICE OF ACTION:
PULLED [--] TABLED [-]
COUNCIL DIRECTIVE:
m
RESPONSIBLE OFFICIAL: Director of Community Development
ENFORCEMENT OFFICIAL: Director of Community Development
EXPIRATION DATE: n/a
REVIEW DATE: n/a
APPROVED[--]
8. AGENDA BILL NO.: 00~-
9. IMPACT OF NON-PASSAGE:
10. IMPACT ON STAFFING, BUDGETS, FACILITIES, EQUIPMENT OR OTHER RESOURCES:
11. RESEARCH SOURCES:
LL ~ Ob M
Bremerton City Council Members
My wife and I have owned for the last 12 years a non-waterfront Manette condo site
across the water from the proposed convention center.
Over the years we have had numerous pl~miag department interpretations as to what was
feasible on this lot. Even though we are not waterfront, the current rules are that we are subject
to the view corridor and height restrictions.
Upon learnj~ng of these restrictions we met with the Mayor, City Attorney and Planning
Department Staff. We were assured that the same rules that applied to us applied to all Shoreline
developments and that changes in the regulations were planned.
When we read in The Sun that the City Council had met and tentatively approved changes
to shoreline regulations we were quite excited. However we learned that the changes were site
specific and applied only to the downtown waterfront where the City owns property, is financing
the project through Bond sales and would benefit financially with increased taxes if the project is
successful.
A subsequent City Council study session regarding changes to regulations affecting all
other shoreline properties, several Council members asked the Planning Director if it were
necessary to change these rules for the Downtown project to proceed. The director stated that the
changes previously discussed for the downtown area were sufficient to allow developmem there.
No action was taken and it was apparent that the rules for the rest of us could wait until
spring, that now careful consideration was needed and that even a design review committee
would be appropriate.
My wife and I now know how the average Enron investor felt. Thc rules for the sale of
our investment were not the same as the CEO (City of Brem~rton). We feel certain that the
State Shoreline Hearings Board would agree with us that these site specific changes are contrary
to the State Shorelines Act, the Bremerton Shorelines Ordnance and the Downtown Waterfront
Urban Renewal Plan
Your Truly,
ORDINANCE NO.
AN ORDINANCE of the City Council of the City of
Bremerton, Washington, amending Chapters 3, 4, and 5 of the City
of Bremerton Shoreline Master Program relating to downtown
waterfront site development standards regarding shoreline setback,
view corridors and height restrictions in the Downtown District.
WHEREAS, the current provisions of Chapter 3 of the City of Bremerton
Shoreline Master Program relating to environment designations and requirements provides that
downtown waterfront site development standards be regulated by the Downtown Waterfront
Urban Renewal Plan (DWURP); and
WHEREAS, the City anticipates significant development in the downtown
waterfront area in the next few years; and
WHEREAS, the downtown waterfront area is a unique shoreline area in that it
encompasses vehicular and pedestrian traffic, including Kitsap Transit and other local and
regional transportation systems connected to the state ferry system; and
WHEREAS, the development regulations set forth in the DWURP are outdated
and not consistent with the City's plans for development of the downtown waterfront area; and
WHEREAS, the City Council desires to ensure optimum utilization of shorelines
within the downtown waterfront area by providing for intensive public access and use and by
managing anticipated development so that it enhances a multiplicity of uses for the downtown
shoreline environment; and
WHEREAS, the City Council, in ensuring optimum utilization of the downtown
shoreline, desires to encourage pedestrian waterfront activities and to enhance visual and
physical access to the shoreline environment for all citizens through various means of public
access; and
1
Shoreline Master Program
WHEREAS, the City Council, in a companion ordinance, Ordinance No.
_, is repealing the Downtown Waterfront Urban Renewal Plan and the City Council
desires to amend its Shoreline Master Program to allow development of the downtown
waterfront in accordance with new development standards and regulations consistent with recent
amendments with the City's Comprehensive Plan; NOW THEREFORE,
THE CITY COUNCIL OF THE CITY OF BREMERTON, WASHINGTON,
DOES HEREBY ORDAIN AS FOLLOWS:
SECTION 1. Chapter 3, Section A of the City of Bremerton Shoreline Master
Program relating to shoreline environment designations is hereby amended to read as follows:
A. SHORELINE ENVIRONMENT DESIGNATIONS
City shorelines are classified into specific environment designations. These
designations are based on physical, biological and development characteristics of
the shorelines. The Shoreline Management Act represents state-wide concerns
and is based on the public trust doctrine protecting the rights of the people of the
State of Washington. Therefore, shoreline environment designations take
precedence over local zoning and comprehensive plan designations.
The entire Bremerton shoreline is designated an "Urban" environment. The Shoreline
Management Act Guidelines state:
The objective of the urban environment is to ensure optimum utilization of
shorelines within urbanized areas by providing for intensive public use and by
managing development so that it enhances and maintains shorelines for a
multiplicity of urban uses.
Since Bremerton's shoreline is almost entirely developed, except in its utility lands, with some type
of residential, commercial, industrial or recreational use, it was believed that an Urban designation
was most appropriate. Within this main designation, several sub-designations have been made.
All designations extend 200 feet landward of the Ordinary High Water Mark (OHWM), unless
otherwise described below.
The Urban environment is divided into the following sub-designations. ~
tThe descriptions of the environment designations, except for the Downtown Waterfront designation, are excerpted from the
City of Bremerton Shoreline Management Master Program adopted in October 1977. The Downtown Waterfront description
2
Shoreline Master Program
Urban Conservancy
The Urban Conservancy designation is for areas that are currently or intended for recreational use
and for areas identified as having biological or physical limitations or other unique or hazardous
characteristics that are incompatible with intense development. Activities permitted in these areas
are intended to have minimal adverse impacts upon the shoreline.
Urban Residential
The Urban Residential designation is for areas which are primarily residential or intended for
residential use. These areas are to maintain existing character and be consistent with that character
in terms of open space, bulk, scale, and intensity of use within the guidelines of current zoning.
Urban Commercial
The Urban Commercial designation is primarily for those areas which range from the high
intensity business district and small light industry to the small commercial operations located in the
various neighborhoods. The intent of this designation is to encourage commercial development
that could enhance public access to the shoreline, either physical or visual, and provide a setting for
the commercial operation that will be of economic benefit.
Downtown Waterfront
The Downtown Waterfront designation is a special Urban Commercial designation for the
downtown shoreline area that is subject to the r-;~,,
O ....... I DI~--
............... Chapter 21.02.152 BMC. The intent of this designation is to encourage development
of the downtown waterfront into a vital, attractive water-oriented area that maximizes opportunities
for large numbers of people to interact passively and actively with the shoreline for leisure and
enjoyment uses.
is exerpted from the former "Designation of Environments" section of the 1989 amendments. These descriptions were
inadvertently omitted from the amendments adopted in 1989 and/or 1992.
3
Shoreline Master Program
Urban Industrial
The Urban Industrial designation is primarily for those areas which are heavily developed for
industrial purposes and those which are appropriate for industrial purposes. The intent of the
designation is to provide for efficient utilization of suitable shoreline areas for water dependent
commerce and industry consistent with the Shoreline Management Act of 1971, as amended.
SECTION 2. Chapter 3, Section B of the City of Bremerton Shoreline Master
Program relating to Common Legal Descriptions is hereby amended to read as follows:
B. COMMON LEGAL DESCRIPTIONS
"Common" legal descriptions provide a clear basis for identifying
boundaries of environment designations. These descriptions
typically rely on both man-made and natural features (i. e. roads,
bluffs, dikes, etc.) to delineate boundaries, l'Vhere there is a
discrepancy, the common legal descriptions take precedence over
mapped boundaries.
Certain areas expected to be annexed into the City in the near future
have been pre-designated in order that the City Master Program
will be effective upon annexation. These areas are described in
italics in the common legal descriptions.
Urban Conservancy
The following areas are designated Urban Conservancy (map designations precede descriptions):
City Parks
The following Urban Conservancy areas are under the jurisdiction of the City of Bremerton Parks
Department:
CS-1 Kitsap Lake Park -- A city park northwest of Harlow Drive offPrice Road, at the south
end of Kitsap Lake. Much of the westerly part of the park is within the Kitsap Bog
Natural System Designation (described later in this section), in which case regulations for
the Bog apply. The western portion of the park is currently outside the city limits, but is
expected to be annexed in the near future.
4
Shoreline Master Program
CS-2
CS-3
CS-4
CS-5
CS-6
CS-7
CS-8
NAD Marine Park -- An undeveloped city nature area park located at the north end of
Shorewood Drive, along the west shore of Ostrich Bay.
Warren Avenue Bridge Landing -- A state right-of-way at the south end of the Warren
Avenue Bridge, along the south shore of the Port Washington Narrows.
Evergreen Park -- A city park east of Park Avenue and south of Park Drive, along the
west shore of the Port Washington Narrows.
Lions' Community Playfield/Manette Treatment Plant -- A city multi-purpose park
located south of Lebo Boulevard between Sheridan Road and Stephenson Avenue,
consisting of a playfield on the northwest and an undeveloped view area at the site of the
demolished Manette sewage treatment plant on the southeast, along the northeast shore of
the Port Washington Narrows.
Lent Lane Viewpoint -- An undeveloped view area south of Lebo Boulevard located at
the intersection of Reid Avenue, along the northeast shore of the Port Washington
Narrows.
Sheridan Park/Community Theatre -- The southerly portion of a city park south of
Lebo Boulevard at Clare Avenue, and the Community Theatre site northwest of the park,
along the northeast shore of the Port Washington Narrows.
Manette Bridge Landing -- A state fight-of-way at the east end of the Manette Bridge,
along the northeast shore of the Port Washington Narrows.
City Utility Lands
The following Urban Conservancy areas are City of Bremerton lands under the jurisdiction of the
Bremerton Utility Department:
CS-9 Union River Reservoir -- This reservoir is given special consideration because of its
vital role in providing the greater Bremerton area a safe, clean supply of industrial and
domestic water. The reservoir is formed by Casad Dam which was completed in 1957.
The reservoir is located approximately 5 miles west of the urbanized portion of
Bremerton on Utility Department lands. However, it is inside the corporate limits of the
City and receives police and fire protection fi.om Utility Department staff and the
Department of Natural Resources.
5
Shoreline Master Program
The Union River canyon was dammed by the 195 foot high Casad Dam, filling the
canyon to a depth of 135 feet at the dam. The reservoir extends more than 1-1/4 miles to
the northeast between the steep slopes of Gold Mountain and the Blue Hills.
CS-10 Twin Lakes Reservoir -- This man-made reservoir is located south of the Belfair Valley
Road, west of the Gold Mountain Golf Course, in a city Water Supply Protection Area,
on Utility Department lands. It is connected to the Union River by a water transmission
pipeline. It has a capacity of 1200 acre feet.
CS-11 Anderson Creek -- This site is located at the mouth of Anderson Creek at the head of
Sinclair Inlet, just east of the Gorst business district, north of S.R. 160, in a city Forest
Resource Area, on Utility Department lands. The site is a former solid waste landfill that
was more recently used as a log staging site, and is now vacant. The soils on the site are
not suitable to support most commercial and/or industrial type buildings, and could not be
used for septic tank drainfield sewage disposal systems without extensive fill. The site is
about 800 feet east of a 22 acre Port of Bremerton aquatic preserve that was established
in the mid-1960's by an agreement with the Department of Ecology that is expected to
expire in the mid-1990's.
Other Conservancy Designations
CS-12 Camp McKean -- A recreational area for the use of Navy personnel located
approximately mid-way on West Kitsap Lake Road between Kitsap Lake Wetlands and
Northlake Way. Federal facilities are outside the jurisdiction of the City. This
designation will become effective upon annexation of the area to the City.
Urban Residential
The following areas are designated Urban Residential (map designations precede descriptions):
R-I(F) Jackson Park -- A U.S. Navy housing area located between NAD Marine Park and the
city limits off the SR-3 Austin Drive Interchange, along the west shore of Ostrich Bay.
This is a U.S. Navy housing area and is outside the land use jurisdiction of the City.
R-2 Ostrich Bay-West/Oyster Bay-West -- Extends west from NAD Marine Park on the
west shore of Ostrich Bay, and around Madrona Point, to the Oyster Bay Commercial
area along the south shore of Oyster Bay.
6
Shoreline Master Program
R-3
II-4
R-5
R-6
R-7
1t-8
R-9
R-10
R-11
R-12
Oyster Bay-East/Mud Bay -- Extends east fi.om the Oyster Bay Commercial area, along
the east shore of Ostrich Bay, and along the west shore of Mud Bay to the city limits.
Haddon Peninsula -- Extends northeast from the city limits at the south end of Phinney
Bay, along the west shore of the Port Washington Narrows, and around Anderson Cove
to the Thompson Commercial area.
Port Washington Narrows-South - Extends west fi.om the Thompson Avenue
Industrial area to the Warren Avenue Bridge Landing, along the southwest shore of the
Port Washington Narrows.
Park Avenue -- Extends southeast from the Warren Avenue Bridge landing to Evergreen
Park, along the southwest shore of the Port Washington Narrows.
Tracyton Beach -- Extends southeast from the city limits along the north side of
Tracyton Beach Road to Elm Street, along the northeast shore of the Port Washington
Narrows.
Stephenson Avenue -- Extends east from Lions' Community Playfield/Manette
Treatment Plant site to the Lent Lane Viewpoint at Stephenson Avenue, along the
northeast shore of the Port Washington Narrows.
Reid Avenue -- Extends east from the Lent Lane Viewpoint to the Community
Theatre/Sheridan Park site along the northeast shore of the Port Washington Narrows.
Manette-West -- Extends south from the Campbell/Wheaton Commercial area to the
Manette Bridge Landing, along the northeast shore of the Port Washington Narrows.
Manette-East -- Extends south from the Manette Commercial area, around the Manette
peninsula, to the city limits, along the northeast shore of the Port Washington Narrows
and the west shore of Sinclair Inlet. This area will extend north of Jacobson Boulevard to
the approximate extension of Cascade View Trail effective on the date of annexation
(pending).
Kitsap Lake -- Extends north from Camp McKean on the west lake shore, around the
lake along the east lake shore to Kitsap Lake Park. This area will include the southwest
lake shore between Camp McKean and Kitsap Lake Wetlands effective upon annexation
of that area (pending).
7
Shoreline Master Program
1t-13
Sherman Heights -- Extends along the northwest shore of Sinclair Inlet approximately
between State Route 3 (SR-3) and Bayview Drive extended. This designation will
become effective upon annexation of the area (pending).
Urban Commercial
The following areas are designated Urban Commercial (map designations precede descriptions):
C-1 Oyster Bay -- Extends southeast from Lower Oyster Bay Road, to the south side of
Kitsap Way at Oyster Bay Road, and then northeast on the north side of Kitsap Way to
the Forest Avenue intersection, along the south shore of Oyster Bay. This area excludes
the parcels adjacent to the shoreline at Lower Oyster Bay Road (Lot 14) and at Forest
Avenue (Lots 3 and 4), which are within the Residential designation.
C-2
Highland -- Extends south from the intersection of 13th Street and Highland Avenue,
then south past the Manette Bridge to Sixth Street extended on the east side of
Washington Avenue, along the west shore of the Port Washington Narrows. Small
portions of the area west of Highland and Washington may also be within the 200-foot
shoreline area.
C-3
Campbell/Wheaton -- Extends southeast along old Wheaton Way from Sheridan Park to
a point just southwest of Warren C. Magnuson Way (the north boundary of the
Bremerton Gardens apartment complex), on the northeast shore of the Port Washington
Narrows.
C-4
Manette -- Extends southeast of the Manette Bridge Landing to the intersection of
Eleventh Street and Pitt Avenue, including a small area northeast of Shore Drive, on the
northeast shore of the Port Washington Narrows.
Downtown Waterfront
The Downtown Waterfront area is located along the west shore of the Port Washington Narrows
where it meets Sinclair Inlet. It is bounded on the south by PSNS; on the west by the west side of
Washington Avenue; on the north by the extension of Sixth Street waterward; and on the east by
8
Shoreline Master Program:
the Outer Harbor Line. The Downtown Waterfront designation is divided into two sub-areas:
Upland (DW/U) and Marine (DW/M). (Map designations precede descriptions.)
DW/U Downtown Waterfront/Upland The area landward from the OHWM.
DW/M Downtown Waterfront/Marine (Over-Water) -- The area waterward of the OHWM.
Urban Industrial
The following areas are designated Industrial (map designations precede descriptions):
I-1 Thompson Avenue -- Extends east from Marguerite Avenue extended northward before
it tums east to Pennsylvania Avenue extended northward, along the south shore of the
Port Washington Narrows.
I-2 Sheldon Boulevard -- Extends south from Evergreen Park at Fourteenth Street to the
intersection of Thirteenth Street and Highland Avenue, along the west shore of the Port
Washington Narrows. A small portion of this area between Fourteenth Street and Pacific
Avenue extends west of Sheldon Boulevard. :
I-3(F) PSNS |I-3] -- Extends west from the Washington Street Ferry Terminal west of First
Street to the city limits on Charleston Beach Road south of Preble Street, on the west
shore of Sinclair Inlet. The entire area is within the federally owned Puget Sound Naval
Shipyard (PSNS), and outside of the land use jurisdiction of the City.
SECTION3. Chapter 3, Section F of the City of Bremerton Shoreline Master
Program relating to environment-specific regulations is hereby amended to read as follows:
F. ENVIRONMENT-SPECIFIC REGULATIONS
Urban Commercial Environment
1. Urban Commercial Environments Landward of High Bluffs (As indicated on Shoreline
Environment Designation Maps):
a. Permitted: Water-dependent uses; water-related uses.
9
Shoreline Master Program
b. Permitted subject to Conditional Use Permit:
uses.
Other Urban Commercial Environments:
a.
b.
C.
Non-water-oriented commercial
Permitted: Water-dependent uses; water-related uses.
Permitted subject to Conditional Use Permit: Water-enjoyment uses.2
Prohibited: Over-water non-water-oriented commercial structures. (This does
not include marine or public access uses.)
Downtown Waterfront Environment
1. Downtown Waterfront Environment:
Public access shall be provided in accordance with *~'e
I'[~I~ D ...... I Dl~tTM
...................... hapter 21.02.152 BMC.
2. Downtown Waterfront/Upland:
a. Permitted: Water-dependent uses; water-related uses; water-enjoyment uses,
as defined herein, which may include museums, restaurants, and mixed-use
commercial.
b. Permitted Subject to Conditional Use Permit: Commercial parking lots, consistent
with the following criteria:
1) The parking lot is designed and managed for use by visitors and patrons of
uses within the downtown waterfront, and not available'for employee
parking.
2) Parking stalls and drives are set back at least 25 feet from the OHWM.
3) The site plan features significant amenities and access to the shoreline.
4) The permit shall expire unless renewed every five (5) years.
e
Downtown Waterfront/Marine Environment:
a. Permitted: Water-dependent uses; water-related uses.
b. Permitted subject to Conditional Use Permit: Over-water restaurants; aquariums;
floating maritime museums (e.g. ships open to the public for tours); other water-
2Since they are not specifically prohibited, non-water-oriented uses may also be permitted by CUP where not over the
water.
10
Shoreline Master Program
enjoyment uses, as defined herein: PROVIDED, Approval of such uses is
contingent upon compliance with the following criteria:
1) The use provides an opportunity for a substantial number of people to enjoy
the waterfront area. For restaurants and aquariums, access to and on the
seawardside of the structure shall be provided for patrons and the public.
2) Large ships open to the public for tours should be located north of Burwell
Street, to prevent degradation of views from the downtown business core.
Restaurants and aquariums shall not exceed seventy-five (75) feet in width,
and not exceed twenty-five (25) feet in height, measured fi.om the Ordinary
High Water Mark (OHWM).
All structures shall be designed to be attractive and unobtrusive.
The structures shall be built on pilings or float. Landfill waterward of the
OHWM is not allowed.
The use is compatible with water-dependent uses of the area. Evaluation
of compatibility will consider:
a) Demands for the site by water-dependent uses (e.g. ferry terminal,
foot ferry, shipyard);
b) The effect on the usefulness of adjacent areas for water-dependent
uses;
c) The probability of attracting additional desirable water-dependent or
undesirable non-water-dependent uses;
.d) Subsidies or other help offered by the developer to support nearby
water-dependent uses.
3)
4)
5)
6)
11
Shoreline Master Program
Development Standards
The matrix and illustrations which follow outline Master Program development standards for
various Environment and Natural System designations. These figures are intended to supplement
the Use/Activity requirements in subsequent chapters.
Table 3-2 Site Development Standards
The Site Development Standards matrix (Table 3-2) summarizes development standards
for structures located within each environment designation. The intent of these
requirements is to provide limited view protection for nearby public and private areas and to
help protect the shoreline environment. (See also: View Protection requirements, Chapter
4.)
Figure 3-3 View Corridor Examples
Figure 3-3 shows a "bird's eye" view of the Figure 3-3 View Corridor requirements as
applied to lots that are 40 - 90 feet wide.
Figure 3-4 View Corridor/Height Requirements
Figure 3-4 gives a cross-section example of the Figure 3-3 View Corridor and Height
requirements as applied to lots varying from 40 to 90 feet in width. (The maximum heights
correspond with Bremerton Zoning Ordinance height limits for structures in the SF-1, SF-
2 and SF-3 zones.)
SECTION4. Chapter 3, Table 3-2 of the City of Bremerton Shoreline Master
Program relating site development standards is hereby amended to read as stated in Exhibit A
attached hereto.
SECTION 5. Chapter 4, Table 4-1 of the City of Bremerton Shoreline Master
Program relating to public access requirements is hereby amended to read as stated in Exhibit B
attached hereto.
12
Shoreline Master Program
SECTION 6. Chapter 5, use category "Commercial Development" of the City of
Bremerton Shoreline Master Program is hereby amended to read as follows:
COMMERCIAL DEVELOPMENT
Applicability
Commercial developments: Those uses which are involved in wholesale and retail trade or
business activities. Commercial developments range from small grocery stores to high-rise office
buildings, and include hotels and restaurants. Commercial development does not include any
activity for which a Home Occupation Permit is issued pursuant to the provisions of the Bremerton
Zoning Ordinance.
Goal
Encourage adequate commercial development of the kind that can be integrated with the shoreline
environment and can benefit from a shoreline location.
Policies
1. Commercial development in shoreline areas should be water-dependent, water-related,
or water-enjoyment uses. In general, non-water-oriented activities should be located
upland, away from the shoreline and landward of the top of the bluff. -
2. Locate commercial development to maximize the enjoyment of the shoreline for a
substantial number of patrons, or for the general public.
3. Locate parking, circulation, and other elements of a commercial development so as not to
interfere with visual quality and visual or physical access to the shoreline.
4. Parking facilities should be placed inland, away from the immediate water's edge and
recreational beaches.
5. Development over the water which interrupts normal public use of the water surface should
be discouraged, except when such development is shown to be an integral part of a plan
promoting public access.
13
Shoreline Master Program
67.
View Protection: Design commercial development to be aesthetically compatible with the
surrounding area. Structures should not significantly impact water views from upland
properties, public roadways or other public areas, nor views of the shoreline from the
water.
Public Access:
a. Require commercial development to provide physical and/or visual public access
to the shoreline or other opportunities for the public to enjoy the shorelines of the
state.
Design resorts and commercial recreational developments to maximize public
access to the shoreline and water areas.
Design commercial developments to provide maximum public access to the
shoreline and water areas, unless it is demonstrated to be physically infeasible or
unsafe.
Regulations
1. Water-oriented commercial developments shall be permitted on the shoreline in
accordance with Table 3-1 - Shoreline Use/Activity Matrix. Non-water-oriented
commercial developments may be permitted by Conditional Use Permit when in
accordance with said Table 1 and other provisions of this Master Program, only where it
can be demonstrated that:
a. A water-oriented use is not reasonably expected to locate on the proposed site due
to topography, surrounding land uses, physical features, or due to the site's
separation from the water.
b. The proposed use does not usurp or displace land currently occupied by a water-
oriented use and will not interfere with adjacent water-oriented uses; and
c. The proposed use will be of appreciable public benefit by increasing public use,
enjoyment or access to the shoreline.
2. Commercial uses that are proposed for shoreline locations will be evaluated individually
for their visual impact, waterfront relationship to the shoreline, and potential to enhance
public access, direct and visual, to the shoreline.
14
Shoreline Master Program
Parking shall be upland of the associated use whenever possible, and located, designed and
screened so as to have minimum visual impact.
When parking or circulation elements must be located adjacent to the shoreline, they shall
be designed to enable pedestrians access to and along the shoreline.
Commercial development shall provide landscaping which is appropriate for the scale of
structure and accessory use, such as parking area. Such landscaping shall consider the
visual impact on adjacent properties.
Public Access Requirements: Commercial use developments shall provide public access as
follows:
a. All commercial developments: "General public access" to the water, as specified
in the Public Access regulations.
b. In addition, all commercial developments on lots adjacent to the water's edge shall
provide "improved public access" to and along the shoreline. (See Public Access
use/activity section.)
c. In Downtown Waterfront environment: Public access shall be provided in
accordance ' ~h~ ~.~^~,~.~ r, ..... , .... xx~.c.^~, ~ ~.~
w~th .... Renewal P!m~Chapter
21.02.152 BMC.
SECTION 7. Severability. If any one or more sections, subsections, or
sentences of this Ordinance are held to be unconstitutional or invalid, such decision shall not
affect the validity of the remaining portion of this Ordinance and the same shall remain in full
force and effect.
SECTION 8. Effective Date. This ordinance shall take effect and be in force ten
(10) days from and after its passage, approval and publication as provided by law.
APPROVED by the City Council the day of ,2002
PASSED by the City Council the day of ,2002
CAROL ARENDS, Council President
15
Shoreline Master Program
Approved this day of ,2002
CARY BOZEMAN, Mayor
ATTEST:
APPROVED AS TO FORM:
KATHLEEN MCCLUSKEY, City Clerk
ROGER A. LUBOVICH, City Attorney
PUBLISHED the
EFFECTIVE the
ORDINANCE NO.
day of
day of
R:\LEGAL\Ordinances\Community DevelopmenfiSMP - Downtown Improvement.doc
,2002
,2002
16
Shoreline Master Program
EXHIBIT A
TABLE 3-2 SITE DEVELOPMENT STANDARDS (Page 1 of 34_)
ENVIRONMENT DESIGNATION SHORELINE VIEW HEIGHT 4
SETBACK ~ CORRIDOR 2
URBAN CONSERVANCY
Utility Lands 25' 6 25' 3
Other 25' 60% 2, 3 -~ 25' 3
Over-Water 8 NA NA 10' 5
RESIDENTIAL
Dwelling
...... Detached Unit 25' 25-40% 2-, 3 25' 3
Attached or Stacked 25' or 15% of 30% 2, 3 25' 3
Dwelling
....... _Units parcel depth
Over-Water 8 NA NA 15' 5
COMMERCIAL
Water-Dependent O' 2, 3 35'
Water-Related 25' 2, 3 35' 3
Water-Enjoyment 25' 2, 3 35'
Non-Water-Oriented 50' 2, 3 35' 3
Over-Water a NA NA 35' 5
DOWNTOWN WATERFRONT ~25,~2
INDUSTRIAL
Water-Dependent 0' 6 35' 3
Water-Related 35' 6 35' 3
Over-Water 9 NA NA 35' 5
NATURAL SYSTEMS
Kitsap Lake NA NA NA
Kitsap Lake Wetlands (Upland) CUP ~o CUP lo CUP ~o
Tracyton Beach (Marine) NA NA NA
CUP = SUBJECT TO CONDITIONAL USE PERMIT · NA = NOT APPLICABLE
EXHIBIT A
TABLE 3-2 SITE DEVELOPMENT STANDARDS (Page 2 of 3~_)
KEY J REQUIREMENT
1 Shoreline Setback -- Minimum setback for structures landward of OHWM: PROVIDED, that
an activity adjacent to a marine bluff may be subject to a special marine bluff review resulting in
a greater setback. EXCEPTIONS: As provided in Bremerton Zoning Ordinance Chapter IV.
Section 1 .C. Front Yards: Intrusions into Required Setbacks.3
2 View Corridor -- A view corridor shall be maintained across a minimum of twenty-five percent
(25%) of the average parcel width, as provided in Requirement #3 (below).
a. The corridor must be in one continuous piece.
b. Structures, parking areas and landscaping may be allowed within the corridor, provided
that they do not impair existing water views from the nearest public street landward of the
site nor from adjoining uses.
1) "Adjoining uses" are uses on property that touches or is directly across a street from
the subject property.
2) The applicant shall obtain signatures of all adjoining property owners who do not object
to the proposal in order to verify that a proposal will not impair adjoining water views.
c. EXCEPTIONS may be permitted by Conditional Use Permit.
3 Height/View Corridor -- Structure height may be increased to designated zoning district
height limit if the increase does not impair views of the water from residential properties upland
of the nearest public street landward of the site; and
a. Either: The increased height is offset by an increase in the minimum View Corridor width
as follows:
Buildin,q Hei,qht View Corridor Width
Under 20 feet: 25%
20-35 feet: 35%
Over 35 feet:4 40%
(See also: Figure 3-5 View Corridor Requirements; and Figure 3-6 View
Corridor/Height Requirements.)
b. Or: The increase is offset by maintaining comparable portions of the structure lower than
the designated height limit.
4 Height Landward of OHWM -- Maximum height above Average Grade Level, unless
otherwise specified.
5 Height Waterward of OHWM -- Maximum height above Extreme High Water (EHW) [15.4 ft.
elevation along the Bremerton shoreline].
6 View Corridor Exception - No Shoreline Master Program requirement; Zoning Ordinance,
Dc';:ntc'::.". Watc.'f. mnt 'Jrbcn Renc'::a! Plcn, or other applicable land use regulations apply.
3The shoreline yard is considered to be a second "front,,ard"j ~/or purposes of determining what intrusions may be permitted in
the shoreline setback. Fences are permitted within the shoreline yard in residential zones as provided by Zoning Ordinance Section 8.
"Fences and Walls" (maximum height - three (3) feet; open mesh cyclone type fence - 42 inches).
4Heights above thirtyfive (35) feet are permitted only when overriding considerations of the public interest will be served.
(RCW 90.58.320)
EXHIBIT A
TABLE 3-2 SITE DEVELOPMENT STANDARDS (Page 3 of 34)
KEY REQUIREMENT
7 Downtown Waterfront --= Height/View CorridorA~ r~gu!~t~d by Dc'::,",to';:~
Height
a. Maximum structure hei.qht shall be as provided in BMC 21.02.152(b) Development
Standards (DW Zone).
View Corridor
a. A view corridor shall be provided and maintained across a minimum of 20% of the aver'ape
site width re.qard ess of structure hei,qht and shall be subiect to the provisions of 2 a.-c. above.
b. In lieu of providin.q a view corridor as specified in a., the applicant may choose either of the
following means to enhance shoreline view access:
1 ) provide physical public access on the shoreline side of the site equal in area to the
amount of site that otherwise would be set aside for a view corridor in a.; this physical access
shall be provided as waterfront open space, terraces, decks, or similar access features open to
the public at all times; or
2) pay a public access acquisition fee to any dedicated account established by the City
for the sole purpose of acquirin.q and/or enhancin.q physical and/or visual shoreline access in
the DW Zone throu.qh easement or fee simple title, the amount equal to 50% of the assessed
value of the site area that otherwise would be set aside for a view corridor in a. above; if this fee
is not used to acquire and/or enhance physical and/or visual shoreline access within 10 years, it
shall be refunded to the property owner; or
c Any combination of a, b(1) and b(2) may be utilized to satisfy the view corridor
requirements set forth herein.
8 Over-Water Environments -- No structures, other than moorage structures or public access
piers, may be waterward of the OHWM.
9 Over-Water Industrial Environments -- No structures, other than moorage strudrures,~ public
access piers, or industrial water-dependent structures, may be waterward of the OHWM.
10 Kitsap Lake Wetlands -- To be determined as a condition of approval of Shoreline
Conditional Use Permit (CUP).
11 Multifamily Shoreline Setback - Whichever setback is greater.5
1_~2 Shoreline Access -- Open space in the form of landscapinq, walkways, terraces, restaurant
decks, and similar features accessible to the public that enhance public enjoyment of the
shoreline environment is allowed as a permitted use within the setback area. To enhance
access by the public to the shoreline environment, parkin.q is allowed as a permitted use
within the setback area when ancillary to a pdmary use, accessible to the .qeneral public,
concealed from shoreline views, and contained within the support structure of open space
features.
5Research into early drafts of this provision confirms that the intent of this provision was for the greater shoreline setback to
apply. This provision assumes that larger buildings will be located on larger lots with room for larger setbacks. This is consistent with
the height/view corridor principle that taller buildings provide a wider view corridor.
EXHIBIT A
TABLE 3-2 SITE DEVELOPMENT STANDARDS (PaRe 4 of 4)
KEY REQUIREMENT
CUP Conditional Use Permit -- Permitted subject to approval of Conditional Use Permit.
NA Not Applicable.
EXHIBIT B
TABLE 4-1 PUBLIC ACCESS REQUIREMENTS (Page 1 of 2)
USE ACTIVITY GENERAL IMPROVED PUBLIC ACCESS REQUIREMENTS
PUBLIC PUBLIC (SUMMARY)
ACCESS ACCESS
AQUACULTURE F 1. Provide access or benefit to the public if
feasible.
ARCHEOLOGICAL & F F 1. Provide as required for associated use.
HISTORIC 2. Design and manage to give maximum
RESOURCES protection to resource.
COMMERCIAL USES R R 1. Downtown Waterfront: In accordance with
~Chapter 21.02.152 BMC.
FOREST F 1. Provide along Shorelines of State-wide
MANAGEMENT USES Significance:
a. Roadside scenic view pullovers;
b. Shoulder parking and pedestrian
access to streams;
LANDFILL * * 1. Provide as required for associated use.
MARINAS R F 1. Provide along top of breakwater where
feasible.
MINING F F 1. Provide safe visual access when physical
access not feasible,
RECREATION USES R R 1. Motorized vehicular access to beaches,
bars, spits and streambeds limited to boat
launching and maintenance activities.
2. All-terrain and off-road vehicles permitted
only where specific areas are set aside and
controlled, and only when demand is
sufficient to warrant such activity.
3. Golf courses: Provide public access for
dispersed passive recreation.
INDUSTRY USES R R 1. Provide visual and/or physical public
access whenever feasible and safe.
RESIDENTIAL USES R R 1. Exceptions: Multi-family developments,
subdivisions, and planned unit
developments of four (4) or less waterfront
lots/units.
TRANSPORTATION * * 1. Public Roads with Scenic Vistas:
USES a. Viewpoint areas;
b. Provisions for safe pedestrian and
non-motorized vehicular travel through
scenic corridors.
SMP GENERAL REQUIREMENTS 4- 1
EXHIBIT B
USE ACTIVITY GENERAL IMPROVED PUBLIC ACCESS REQUIREMENTS
PUBLIC PUBLIC (SUMMARY)
ACCESS ACCESS
SHORE * * 1. Provide as required for associated use.
MODIFICATION 2. Dikes and Levees: Provide linear public
ACTIVITIES access when in public interest. Improved
public access is preferred.
3. Breakwaters, Jetties, & Groins: Provide
where feasible and safely compatible.
4. Bulkheads at public access sites: Provide
for safe access to the water.
UTILITIES R R 1. Provide for compatible multiple use of sites
and rights-of-way, including physical and/or
visual access points and trail systems.
WATER ACCESS AND * * 1. Provide as required for associated use,
MOORAGE consistent with scale of project.
KEY:
Required
Required Where Feasible
Special Requirements as Summarized
SMP GENERAL REQUIREMENTS 4 - 2
150
AGENDA BILL
BREMERTON CITY COUNCIL
1. SUBJECT: PUBLIC HEARING ON
ORDINANCE REAFFIRMING DESIGNATED
BLIGHTED AREAS, REDESIGNATING THE
PROJECT AREA, AND CREATING A NEW
COMMUNITY RENEWAL PLAN FOR THE
PROJECT AREA.
FOR AGENDA: Nov. 13 and Nov. 20, 2002
ORIGINATING DEPT: City Attorney's Office
ORIGINATOR: Roger A. Lubovich
DATE SUBMITTED: Oct. 22, 2002
2. CLEARANCES: (Comment on back if necessary)
C~HR:IS-~ ~qktor of_C_~lopment
ROGER A. LU. BQylCH, City Attomey,
FISCAL & BUDGET CHAIRMAN
OPERATIONS CHAIRMAN
3. EXHIBITS:
PROPOSED ORDINANCE
APPROVED FOR SUBMITTAL:
COUNCIL PRESIDENT
4. SUMMARY STATEMENT AND REQUIREMENT FOR COUNCIL ACTION:
The proposed ordinance reaffirms the blighted areas as designated and reaffirmed in.Resolution Nos. 1730 and
2117, creates a new Community Renewal Area for Community Renewal Projects re~desi.gnating the same as the
"Project Area," and creates a new Community Renewal Plan for the Project Area.
5. RECOMMENDATION:
Move to approve the proposed ordinance on first reading.
Move to pass Ordinance No.
on second reading.
7. NOTICE OF ACTION:
PULLED [~ TABLED ['-]
COUNCIL DIRECTIVE:
RESPONSIBLE OFFICIAL: Director of Community Development
ENFORCEMENT OFFICIAL: Director of Community Development
EXPIRATION DATE: n/a
REVIEW DATE:
APPROVED [~ DISAPPROVED [] AMENDED
8. AGENDA BILL NO.:
9. IMPACT OF NON-PASSAGE:
10. IMPACT ON STAFFING, BUDGETS~ FACILITIES~ EQUIPMENT OR OTHER RESOURCES:
11. RESEARCH SOURCES:
ORDINANCE NO.
AN ORDINANCE of the City Council of the City of
Bremerton, Washington: 1) reaffirming blighted areas as
designated and reaffirmed in Resolutions No. 1730 and No. 2117
and Ordinance No. 4187; 2) amending and modifying the City's
Urban Renewal Project Area as set forth in Resolution No. 2117,
with a new "Community Renewal Area" for "Community Renewal
Project(s)" re-designating the same the "Project Area"; and 3)
amending and modifying the City's Urban Renewal Program by
replacing the repealed DWURP with a new Community Renewal
Plan for the Project Area consisting of: i) Section C-1 of the Land
Use Element of the Comprehensive Plan as amended by Ordinance
No. 4783, ii) Section 21.02.152 of the Bremerton Municipal Code
entitled "Downtown District" and related Zoning Map designation
Downtown Waterfront ("DW") zone, iii) Shoreline Master
Program regulations related to the Project Area, iv) a project
financing plan , and v) a housing plan for residents displaced by
the Community Renewal Project.
WHEREAS, pursuant to Resolution No. 1730, the City Council declared that area
generally described as from the Puget Sound Naval Shipyard north to 6th Street and from Warren
Avenue east to the shoreline of the Washington Narrows in the City of Bremerton to be a
blighted area as defined in RCW 35.81.010(2); and
WHEREAS, the City Council, in 1986, passed Resolution No. 2117 confirming
and reaffirming Resolution No. 1730 and directed the Mayor and his staff to prepare an urban
renewal plan and project for that portion of the blighted area bound by Washington Street on the
west, the Outer Harbor line on Sinclair Inlet on the east, Puget Sound Naval Shipyard on the
south, and the northerly line of Fifth Street extended easterly the blighted area for urban renewal
("Urban Renewal Project Area") as defined in RCW 35.81.010(2); and
WHEREAS, pursuant to Ordinance No. 4187, the City Council adopted
Downtown Waterfront Urban Renewal Plan CDWURP") for the Urban Renewal Project Area;
and
1
Community Renewal
WHEREAS, the City Council, in Ordinance No. , a companion to this
Ordinance, is repealing the DWURP and amending the Zoning Code establishing the Downtown
District consisting of the Downtown Core (DC) and the Downtown Waterfront (DW) zones, to
allow development of the Downtown District in accordance with new development standards and
regulations, and further, in another companion ordinance, Ordinance No. is amending
the Shoreline Master Program relating to the Downtown District; and;
WHEREAS, the City Council finds it in the best interest of the City to maintain
and reaffirm the Blighted Area designation as defined in RCW 35.81.010(2) as designated and
reaffirmed in Resolution Nos. 1730 and 2117, and Ordinance No. 4187, that conditions have not
changed since those designations to warrant repeal of said designations and that the
rehabilitation, redevelopment or a combination thereof of the blighted areas is necessary in the
interest of the public health, safety, morals, and welfare of the residents of the City; and
WHEREAS, the Washington State Legislature in its 2002 session amended the
state's Urban Renewal Law, renaming it the "Community Renewal Law" and providing
additional tools to cities for the revitalization of "Community Renewal Areas" which are
blighted areas designated as appropriate for "Community Renewal Project(s)"as set forth in
Chapter 35.81 RCW; and
WHEREAS, pursuant to Resolution No. 2508, the City approved the Bremerton
Comprehensive Plan as a local comprehensive plan under Chapter 36.70 RCW ("GMA
Comprehensive Plan"); and
WHEREAS, pursuant to Ordinance No. 4783, the City amended Section C-1 of
the Land Use Element of the Comprehensive Plan as a GMA Comprehensive plan policy
amendment; and
WHEREAS, the City Council finds it in the best interest of the City to amend and
modify the City's Blighted Urban Renewal Area as set forth in Resolution No. 2117, with a new
Community Renewal Area for Community Renewal Projects pursuant to Chapter 35.81 RCW,
2
Community Renewal
designated the "Project Area" consisting of the area identified in the Downtown Waterfront
(DW) zone as adopted in Ordinance No. ~; and
WHEREAS, the City Council also finds it in the best interest of the City to amend
and modify its Urban Renewal Program by replacing the repealed DWURP with a new
Community Renewal Plan for the Project Area consisting of: 1) Section C-1 of the Land Use
Element of the Comprehensive Plan as amended by Ordinance No. 4783; 2) Section 21.02.152
of the Bremerton Municipal Code entitled "Downtown District" and related Zoning Map
designation of the Downtown Waterfront ("DW") zone as adopted in Ordinance No. ~ as
enacted and as hereinafter amended; 3) Shoreline Master Program regulations related to the
Project Area including those adopted pursuant to Ordinance No. as enacted and as
hereinafter amended; 4) a project financing plan; and 5) a housing plan for residents displaced by
the community renewal project; and
WHEREAS, by Resolution No. 2755, the City Council authorized the Kitsap
County Consolidated Housing Authority CKitsap Authority") to exercise its powers as a housing
authority within the City, and to exercise the powers of an Urban Renewal Agency, pursuant to
Chapter 35.81 RCW, within the City; and
WHEREAS, the City desires that the Kitsap Authority continue to exercise the
powers authorized by Resolution No. 2755, however to exercise such powers as a Community
Renewal Agency pursuant to Chapter 35.81 RCW; and
WHEREAS, on November 13, 2002 and November 20, 2002, the City Council
held public hearings concerning proposed new COMMUNITY RENEWAL PLAN after notice
was given in accordance with RCW 35.81.060; and
WHEREAS, the City Council finds that there are few, if any, residents living in
the Blighted Area but that, a housing plan is necessary for displacement of residents who might
be replaced by the community renewal project designated the "Residential Displacement Plan",
3
Community Renewal
and that the proposed plan is feasible for making adequate housing for residents who may be
displaced by the project; and
WHEREAS, adoption of this ordinance and the proposed Community Renewal
Plan does not amend and or create a sub-area plan of the Comprehensive Plan; and
WHEREAS, the City Council finds that the proposed Community Renewal Plan
conforms to and is consistent with the Comprehensive Plan; and
WHEREAS, the City Council finds that the Community Renewal Plan will afford
maximum opportunity, consistent with the needs of the City for the rehabilitation or re-
development of the blighted area by the private sector; and
WHEREAS, the City Council finds that a sound and adequate financial program
exists for the financing of the Community Renewal Project(s) given current Public Facilities
District ("PFD") funding, City partnerships in proposed projects and anticipated private
development financing; and
WHEREAS, the City Council desires to adopt the Community Renewal Plan to
allow development of the Project Area in accordance with new development standards and
regulations and to address changes in conditions since the adoption of the DWURP; NOW
THEREFORE,
THE CITY COUNCIL OF THE CITY OF BREMERTON, WASHINGTON,
DOES HEREBY ORDAIN AS FOLLOWS:
SECTION 1. The recitals set forth above are hereby incorporated as if set forth
herein in full.
SECTION 2. The findings set forth in Resolution Nos. 1730 and 2117 and
Ordinance No. 4187 as they relate to the areas of blight are hereby adopted by reference as if
4
Community Renewal
incorporated herein, and further, there is hereby designated and reaffirmed, within the City of
Bremerton, an area of blight as defined in RCW 35.81.010(2), as designated and reaffirmed in
Resolution Nos. 1730 and 2117 and Ordinance No. 4187 to be an area of blight, designated the
"Blighted Area" as set forth in Exhibit "A", incorporated herein by reference.
SECTION 3. The City's Urban Renewal Project Area as set forth in Resolution
No. 2117, is hereby modified and amended as the new Community Renewal Area for
Community Renewal Projects pursuant to Chapter 35.81 RCW, designated as the "Project Area"
consisting of the area identified in the Downtown Waterfront (DW) zone as adopted in
Ordinance No. , which area is more specifically set forth in Exhibit "B" attached hereto and
incorporated by reference.
SECTION 4. The City's downtown Urban Renewal Program, previously
consisting of the DWURP which is concurrently being repealed in Ordinance No.
hereby modified and amended as follows:
, is
There is hereby adopted and established a new Community Renewal Plan for the Project
Area consisting off 1) Section C-1 of the Land Use Element of the Comprehensive Plan as
amended by Ordinance No. 4783; 2) Section 21.02.152 of the Bremerton Municipal Code
entitled "Downtown District" and related Zoning Map designation of the Downtown Waterfront
(DW) zone as adopted in Ordinance No. ~ as enacted and as hereinafter amended; 3)
Shoreline Master Program regulations related to the Project Area including those adopted
pursuant to Ordinance No. as enacted and hereinafter amended; 4) the project
financing plan as set forth in Exhibit "C", incorporated herein by reference; and 5) the housing
plan for residents displaced by the Community Renewal Project(s) designated the "Residential
Displacement Plan" as set forth in Exhibit "D", incorporated herein by reference.
SECTION 5. The Council ratifies and reconfirms its election, by Resolution No.
2755, to authorize and assign the Kitsap Authority to exercise the powers of a Community
Renewal Agency granted by and consistent with Chapter 35.81 RCW, and finds that such
election is in the public interest.
5
Community Renewal
SECTION 6. Severability. If any one or more sections, subsections, or
sentences of this Ordinance are held to be unconstitutional or invalid, such decision shall not
affect the validity of the remaining portion of this Ordinance and the same shall remain in full
force and effect.
SECTION 7. Effective Date. This ordinance shall take effect and be in force ten
(10) days from and after its passage, approval and publication as provided by law.
APPROVED by the City Council the
PASSED by the City Council the
day of ,2002
day of ,2002
CAROL ARENDS, Council President
Approved this day of ,2002
CARY B07.EMAN, Mayor
ATTEST:
APPROVED AS TO FORM:
KATHLEEN MCCLUSKEY, City Clerk
ROGER A. LUBOVICH, City Attorney
PUBLISHED the
EFFECTIVE the
ORDINANCE NO.
day of ,2002
day of ,2002
R:\LEGAL\Ordinances\Community Development\Community Renewal.doc
6
Community Renewal
Bremerton Blighted Area
EXHIBIT A
Ordinance #
PUGET SOUND
NAVAL SHIPYARD
Legend
~ City Parcels
~ Blighted Area
Downtown Project Area
EXHIBIT B
Ordinance #
6TH STREET
5TH STREET
4TH STREET
2ND STREET
1ST
PUGET SOUND
NAVAL SHIPYARD
Legend
City Parcels
~ Project Area
I bo
FINANCE PROGRAM
The following is a proposal for financing projects within the Community Revitalization
project area.
The finance plan to implement the redevelopment of the project area includes:
Encouraging residential growth in the project area
· Expanding the downtown public and private sector workforce
· Stimulation of earnings and investment
The strategy will combine the use of appropriate municipal bond financing and
public/private investment partnerships for financing new development and upgrading
existing infrastructure. For example:
· Increase and improve downtown parks open spaces and plazas
· Improve downtown traffic circulation
Create pedestrian friendly areas
· Continue to improve transit opportunities
A goal of the strategy is to effect positive changes in the municipal tax base.by assisting
existing property owners and businesses with the addition of new construction and value.
The City of Bremerton will actively seek public and private funding to be used to
mitigate private development risks within the Community Revitalization area. Public
funding shall include but not be limited to the New Market Tax Credits, The Low Income
Housing Tax Credits, taxable and tax exempt municipal Bonds. U.S. Dept of Housing
and Urban Development Economic Development Initiative grants, U.S. Dept of Housing
and Urban Development (HUD) Sec 108 loans, HUD Community Development Block
Grant funds and HUD Home Investment Partnership loans and grants.
The plan will provide for the sale of condominiums to public or private purchasers in the
project area to encourage economic growth in the blight area. Inviting joint development
1
Community Renewal
i ~ ~ Exhibit C
opportunities where feasible will encourage private sector investment. The Kitsap
County Consolidated Housing Agency, acting as redevelopment agency for the City of
Bremerton shall use its bonding finance authority to purchase and develop property that
meets the goals of the plan and to sell developed properties to the private sector whenever
feasible.
The City will establish the Community Revitalization area development as a top priority
for the application of all grant funds and will actively solicit and encourage private
investment in the project area.
The strategy also includes ongoing economic and demographic analysis of the
revitalization project and future growth initiatives necessary and appropriate to assist in
the administration and implementation of the project.
Community Renewal
Exhibit C
RESIDENTIAL DISPLACEMENT PLAN
Introduction
The City of Bremerton does not anticipate displacement of residents in the
revitalization area. In the event such displacement does occur, all available resources
will be used to mitigate its adverse effects.
Plan to Minimize Displacement
The City of Bremerton will emphasize projects which:
Do not demolish buildings housing low income residents
· Require no relocation or only temporary relocation
· Use properties voluntarily sold, not as result of the project
Plan to Assist Displaced Residents
For projects where displacement is unavoidable, the City of Bremerton will
follow all pertinent Federal and State of Washington laws, rules, and guidelines
governing relocation of displaced persons. In addition, the programs, services and
funding sources of the Kitsap County Consolidated Housing Authority, the Bremerton
Housing Authority and the Washington State Housing Finance Commission shall be
requested to assist any resident displaced as a result of the project. These programs are
expected to include down payment assistance, rent subsidies, (HUD Sec 8) self-help
housing construction and placement in subsidized housing projects currently in operation
or planned for construction in the near future.
Community Renewal
ExhibU D
AGENDA BILL
BREMERTON CITY COUNCIL
SUBJECT:
ORDINANCE NO.
FOR AGENDA OF:
ORIGINATING DEPT:
ORIGINATOR:
DATE SUBMITTED:
Authorizing the Issue of General Obligation Bonds to
Finance the Public Safety Facilities approved by the voters
2002 the P~r,~ase
on September 17, and Accepting , Offer
of Bank of America. ~
2. CLEARANCES: Comment~d~f~ac'~if/e~ssary) 3. EXHIBITS:
Finance Director Bo~ nd Ordinance
City Attorney - - .... Official Statement
~-~1
Fiscal & Budge~ Purchase Offer (At Second Reading)
Will be Distributed the night of November 20.
Operations ~~'- ~
APPROVED BY COUNCIL PRESIDENT FOR SUBMITTAL:
~UNCIL PRESIDENT ~-~-~ ~~_~
November 13, 2002
Finance
Dick Saunders
November 7, 2002
4. SUMMARY STATEMENT AND REQUIREMENT FOR COUNCIL ACTION:
This ordinance will authorize the financing necessary to acquire additional police vehicles, fire trucks, apparatus and
equipment: and to acquire land, construct, remodel and equip new fire, police and court facilities. This project has
been reviewed by Council in the context of the 2002 - 2007 ClP and is included in the 2003 preliminary budget. The
bond issue proposed is a 25 year, Unlimited Tax General Obligation with level debt service. While the debt will be a
general obligation of the City, it is expected that repayment will be made from annual property tax levies upon
property in the City as approved by the voters on September 17, 2002.
8. RECOMMENDATION:
Move to approve on first reading the ordinance authorizing the bond issue for the acquisition of Public Safety
Equipment and Facilities.
Move to pass on second reading Ordinance No. authorizing the bond issue for the acquisition of Public Safety
Equipment and Facilities and to accept the purchase offer of Bank of America.'
9. RESPONSIBLE OFFICIAL:
ENFORCEMENT OFFICIAL:
EXPIRATION DATE:
REVIEW DATE:
Finance Director
Mayor
Dec. 1,2027
N/A
PULLED TABLED
COUNCIL DIRECTIVE:
10. NOTICE OF ACTION
APPROVED DISAPPROVED
AMENDED'_~ F
11. AGENDA BILL NO: O~ "" ~ ~ ~
2. CLEARANCE COMMENTS:
$. IMPACT ON NON-PASSAGE:
The City will not have the funding necessary to pay for the Equipment or facilities authorized by the voters.
6. IMPACT ON STAFFING~ BUDGETS~ FACILITIES~ EQUIPMENT OR OTHER RESOURCES:
This project and financing are included in the 2003 preliminary Budget.
7. RESEARCH SOURCES:
Bank of America. City's bond counsel.
DRAFT 11/7/02
For Discussion Purposes Only
CITY OF BREMERTON, WASHINGTON
ORDINANCE NO.
AN ORDINANCE of the City of Bremerton, Washington, relating
to the incurrence of indebtedness; providing for the sale and
issuance of unlimited tax general obligation bonds, 2002, in the
aggregate principal amount of $12,979,000 as authorized by
Resolution No. 2866 of the City and as approved by the voters in
the City at a special election on September 17, 2002, to pay part of
the costs of acquiring additional police vehicles, fire trucks,
apparatus and equipment, acquiring land, and constructing,
remodeling and equipping new fire, police and court facilities;
providing for the date, denominations, fo,nm, te,,-'ms, regish-ation
privileges, maturity, interest rates and covenants of the bonds;
establishing a debt service account for the bonds; and providing for
the sale and delivery of such bonds to Banc of America Securities
LLC, Seattle, Washington
WHEREAS, by Resolution No. 2866, the City Council authorized the City to
acquire additional police vehicles, fire trucks, apparatus and equipment; to acquire land,
construct, remodel and equip new fire, police and court facilities; to incur indebtedness;
to issue no more than $12,979,000 of unlimited tax general obligation bonds maturing
within 25 years to pay the costs of such construction and acquisition; and
WHEREAS, at a special election held in conjunction with the primary election on
September 17, 2002, the number and proportion of the voters of the City required by law
for the adoption thereof voted in favor of a proposition authorizing the issuance of such
bonds as authorized by Resolution No. 2866; and
WHEREAS, the City deems it necessary and advisable that bonds in the principal
amount of $12,979,000 now be sold and issued to provide funds to pay part of the costs
of acquiring additional police vehicles, fire trucks, apparatus and equipment; acquiring
land, and constructing, remodeling and equipping new fire, police and court facilities and
paying incidental costs and costs related to the sale and issuance of such bonds; and
WHEREAS, Banc of America Securities LLC has offered, by way of the
Purchase Agreement, to purchase such bonds upon the terms and conditions hereinafter
set forth; NOW, THEREFORE,
THE CITY OF BREMERTON DOES ORDAIN AS FOLLOWS:
DRAFT 11/7/02
For Discussion Purposes Only
Section 1. Definitions. Unless the context otherwise requires, the terms defined
in this section, for all purposes of this Ordinance (including the recitals hereto) and of any
ordinance supplemental hereto, shall have the meanings herein specified; words
importing the singular number include the plural number and vice versa:
"Beneficial Owner" means, with respect to any Bond, the Person named on the
records of the Custodian as having the right, without a physical certificate evidencing
such right, to transfer, to hypothecate and to receive the payment of the principal of,
premium, if any, and interest on such Bond as the same becomes due and payable.
"Bond Fund" means the 2002 Unlimited Tax General Obligation Bond Account
in the City's Bond Fund created by this Ordinance for the purpose of paying and securing
the principal of and interest on the Bonds.
"Bonds" means the City of Bremerton,. Washington, Unlimited Tax General
Obligation Bonds, 2002, dated December 1, 2002, in an original aggregate principal
amount of $12,979,000, the sale and issuance of which are authorized by this Ordinance.
"Bond Register" means the registration books on which are maintained the names
and addresses of the Owners or nominees of the Owners of the Bonds.
"Book-Entry Termination Date" means the fifth business day following the date
of receipt by the Registrar of the City's request to terminate the book-entry system of
registering the beneficial ownership of the Bonds.
"City" means the City of Bremerton, Washington, a first class city(organized and
existing under State law.
"City Council" means the City Council of the City.
"Closing" means the date and time when the Bonds are delivered to the Purchaser
in exchange for payment in full therefor.
"Code" means the Internal Revenue Code of 1986, as heretofore or hereafter
amended, together with all applicable rulings and regulations heretofore or hereafter
promulgated thereunder.
"Custodian" means (a) The Depository Trust Company, New York, New York, or
(b) any successor thereto engaged by the City to operate a book-entry system for
recording, through electronic or manual means, the beneficial ownership of the Bonds, in
which system no physical certificates are issued to the Beneficial Owners of the Bonds,
but in which a limited number of physical certificates are issued to and registered in the
name of the Custodian or its nominee, and delivered to the Custodian; provided, that such
book-entry system operated by the Custodian may include the use of subsystems of
recording the beneficial ownership of Bonds which are operated by parties other than the
2
DRAFT 11/7/02
For Discussion Purposes Only
Custodian and the use of a nominee for the Custodian; and the term "Custodian," as used
herein, includes any party operating any such subsystem.
"Government Obligations" means "government obligations," as defined in
Chapter 39.53 RCW, as now in existence or hereafter amended.
"Letter of Representations" means the Blanket Issuer Letter of Representations,
dated November 19, 1997, between the City and the Custodian pertaining to the payment
of the Bonds and the "book-entry" system for evidencing the beneficial ownership of the
Bonds prior to the Book-Entry Termination Date.
"MSRB" means the Municipal Securities Rulemaking Board.
"NRMSIR" means a nationally recognized municipal securities information
repository designated by the SEC.
"Ordinance" means this Ordinance No. of the City.
"Owner" means the person named as the registered owner of a Bond on the Bond
Register.
"Preliminary Official Statement" means the Preliminary Official Statement
pertaining to the Bonds, dated [November 12,] 2002.
"Project" means the acquisition of additional police vehicles, fire trucks,
apparatus and equipment, acquisition of land and construction, remodelin~ and equipping
new fire, police and court facilities.
"Project Fund" means the Public Safety Projects Fund of the City.
"Purchase Agreement" means the Bond Purchase Agreement for the Bonds by
and between the City and the Purchaser, which written Purchase Agreement is on file
with the City Clerk and is incorporated herein by this reference.
"Purchaser" means Banc of America Securities LLC.
"RCW" means the Revised Code of Washington, as amended.
"Registrar" means the fiscal agency of the State (as of the date of Closing, The
Bank of New York), which fiscal agency is appointed from time to time by the State
Finance Committee pursuant to chapter 43.80 RCW.
"Rule" means SEC Rule 15c2-12.
"SEC" means the United States Securities and Exchange Commission.
3
DRAFT 11/7/02
For Discussion Purposes Only
"SID" means a state information depository.
"State" means the State of Washington.
Section 2. Purpose and Description of Bonds. The City authorizes the sale and
issuance of its "Unlimited Tax General Obligation Bonds, 2002" for the purpose of
paying part of the costs of the Project and to pay certain "incidental costs and costs
related to the sale and issuance" (as defined in RCW 39.46.070) of the Bonds.
The Bonds shall be in the aggregate principal amount of $12,979,000; shall be
dated December 1, 2002; shall be issued in fully registered form as to both principal and
interest; shall be in the denomination of $5,000 each or any integral multiple thereof
within a single maturity, except for one bond maturing in 2003, which shall be issued in
the denomination of $4,000, shall be numbered separately in such manner and with any
additional designation as the Registrar deems necessary for purposes of identification;
and shall bear interest at the rates; and shall mature on the dates and in the principal
amounts, all as set forth below:
4 ~(o~
DRAFT 11/7/02
For Discussion Purposes Only
Maturity Dates
(December 1)
Principal Amounts
Interest Rates
2003
2004
2005
2006
2007
2008
2009
2010
2011
2012
2013
2014
2015
2016
2017
2018
2019
2020
2021
2022
2023
2024
2025
2026
2027
$ %
The Bonds shall bear interest (computed on the basis of a 360-day year of twelve
30-day months) from their date or from the most recent interest payment date to which
interest has been paid or duly provided for, whichever is later, payable on June 1, 2003,
and semiannually thereafter on December 1 and June 1 of each year to the maturity or
earlier redemption thereof. If any Bond is not paid upon proper presentment at its
maturity date, the City shall have the obligation to pay interest at the same rate from and
after such maturity date until such Bond, both principal and interest, is paid in full.
5
DRAFT 11/7/02
For Discussion Purposes Only
The Bonds shall be negotiable instruments to the extent provided by
RCW 62A.8-102 and RCW 62A.8-105.
On the date of issue of the Bonds, all Bonds maturing in the same maturity year
shall be issued in the form of a single certificate, which certificate shall be registered in
the name of the Custodian or its nominee, and delivered to the Custodian. The Custodian
shall hold each such Bond certificate in fully immobilized form for the benefit of the
Beneficial Owners pursuant to the Letter of Representations until the earliest to occur of
either (I) the date of maturity of the Bonds evidenced by such ce~ificate, at which time
the Custodian shall surrender such certificate to the Registrar for payment of the principal
of and interest on such Bonds coming due on such date, and the cancellation thereof;
(2) the Book-Entry Termination Date; or (3) the date the City determines to utilize a new
Custodian for the Bonds, at which time the old Custodian shall (provided the City is not
then in default of any payment then due on the outstanding Bonds) surrender the
immobilized certificates to the Registrar for transfer to the new Custodian and'
cancellation as herein provided.
For so long as any outstanding Bonds are registered in the name of the Custodian
or its nominee and held by the Custodian in fully immobilized form as described in this
Section 2, the rights of the Beneficial Owners shall be evidenced solely by an electronic
and/or manual entry made from time to time on the records established and maintained by
the Custodian in accordance with the Letter of Representations, and no certificates
evidencing such Bonds shall be issued and registered in the name of any Beneficial
Owner or such Beneficial Owner's nominee.
DRAFT 11/7/02
For Discussion Purposes Only
The City may terminate the "book-entry" system of registering ownership of the
Bonds at any time (provided the City is not then in default of any payment then due on
the outstanding Bonds) by delivering to the Registrar: (a) a written request that it issue
and deliver Bond certificates to each Beneficial Owner or such Beneficial Owner's
nominee on the Book-Entry Termination Date; (b) a list identifying the Beneficial
Owners as to both name and address; and (c) a supply of Bond certificates, if necessary
for such purpose. Upon surrender to the Registrar of the immobilized certificates
evidencing all of the then outstanding Bonds, the Registrar shall issue and deliver new
certificates to each Beneficial Owner or such Beneficial Owner's duly appointed agent,
naming such Beneficial Owner or such Beneficial Owner's nominee as the Owner
thereof. Such certificates may be in any integral multiple of $5,000 within a single
maturity, except for one bond maturing in 2003, which shall be issued in the
denomination of $4,000. Following such issuance, the Owners of such Bonds may
transfer and exchange such Bonds in accordance with Section 10 hereof.
Neither the City nor the Registrar shall have at any time any responsibility or
liability to any Beneficial Owner of Bonds or to any other person for any error, omission,
action or failure to act on the part of the Custodian with respect to payment, when due, to
the Beneficial Owner of the principal and interest on the Bonds, proper recording of
beneficial ownership of Bonds, proper transfers of such beneficial ownership, or any
notices to Beneficial Owners or any other matter pertaining to the Bonds.
Section 3. Place, Manner and Medium of Payment. Both the principal of and
interest on the Bonds shall be payable in lawful money of the United States of America.
Prior to the Book-Entry Termination Date, the principal and interest on the Bonds shall
DRAFT 11/7/02
For Discussion Purposes Only
be paid by the Registrar to the Custodian as the Owner thereof, for the benefit of the
Beneficial Owners thereof, in accordance with the Letter of Representations.
From and after the Book-Entry Termination Date, interest on the Bonds shall be
paid by check or draft mailed on or before the interest payment date, to the persons
identified as the Owners on the fifteenth day of the month preceding the interest payment
date at the addresses shown for the Owners on the Bond Register. From and after the
Book-Entry Termination Date, principal of the Bonds shall be payable upon presentation
and surrender of the Bonds by the Owners m the principal corporate trust office of the
Registrar.
Section 4. Optional Redemption; Partial Redemption; Notice; Open Market
Purchase; Cancellation. The Bonds maturing in the years 2003 through 2012, inclusive,
shall not be subject to redemption prior to maturity. The Bonds maturing on or after
December 1, 2013 shall be subject to redemption prior to maturity at the option of the
City, in whole or in part on any date (maturities to be selected by the City and by lot
within a maturity in such manner as the Registrar shall determine), commencing on
December 1, 2012, at a price of par plus accrued interest to the date of redemption.
Any Bond in the principal amount of greater than $5,000 may be partially
redeemed in any integral multiple of $5,000. Prior to the Book-Entry Termination Date,
Bonds shall be partially redeemed in accordance with the Letter of Representations.
From and after the Book-Entry Termination Date, in the event of a partial redemption of
a Bond, upon surrender of such Bond at the principal corporate trust office of the
Registrar, a new Bond or Bonds (at the option of the Owner) of the same maturity and
interest rate and in the aggregate principal amount remaining unredeemed shall be
DRAFT 11/7/02
For Discussion Purposes Only
authenticated and delivered to the Owner, without charge to the Owner therefor, in any
denomination authorized by this Ordinance and selected by the Owner.
Prior to the Book-Entry Termination Date, the Registrar shall give, or cause to be
given, notice of a call for redemption of any Bonds to the Custodian, as the Owner
thereof, for the benefit of the Beneficial Owners thereof, in accordance with the Letter of
Representations. From and after the Book-Entry Termination Date, notice of any such
intended redemption shall be given by or on behalf of the City not less than 30 nor more
than 60 days prior to the date fixed for redemption by first-class mail, postage prepaid, to
the Owner of each Bond to be redeemed at the address appearing on the Bond Register on
the day the notice is given. The requirements of this section shall be deemed to be
complied with when notice is mailed as herein provided, whether or not it is actually
received by the Owner. In addition, such redemption notice shall be mailed within the
same time period, postage prepaid, to each NRMSIR and to Moody's Investors Service
Inc., or their respective successors, but such mailings shall not be a condition precedent
to the redemption of such Bonds.
If such notice to the Owners shall have been given and the City shall have set
aside sufficient money for the payment of all Bonds called for redemption on the date
fixed for redemption, the Bonds so called shall cease to accrue interest after such
redemption date, and all such Bonds shall be deemed not to be outstanding hereunder for
any purpose, except that the Owners of such Bonds shall be entitled to receive payment
of the redemption price and interest accrued on the principal of the Bonds to the
redemption date from the money set aside for such purpose.
9 l q.
DRAFT 11/7/02
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The City reserves the right to purchase any or all of the Bonds on the open market
at any time and at any price.
All Bonds purchased or redeemed by the City shall be surrendered to the
Registrar for cancellation.
Section 5. Debt Limit Not Exceeded. The City finds and covenants that the
Bonds are issued within all constitutional and statutory debt limitations presently
applicable to the City.
Section 6. Pledge of Full Faith, Credit and Resources.. The Bonds are unlimited
tax general obligations of the City. The City hereby irrevocably covenants that, unless
the principal of and interest on the Bonds are paid from other sources, so long as the
Bonds are outstanding, it will include in its budgets and make annual levies of taxes
without limitation as to rate or amount upon all of the property in the City subject to
taxation in amounts sufficient, together with any other money legally available therefor,
to pay the principal of and interest on the Bonds as the same shall become due.· The City
hereby irrevocably pledges its full faith, credit and resources to the annual levy and
collection of such taxes and for the prompt payment of such principal and interest.
Section 7. Form of Bonds. The Bonds shall be typewritten, printed or
lithographed on good bond paper in a form consistent with this Ordinance and
Washington law.
Section 8. Execution of Bonds. The Bonds shall be signed on behalf of the City
with the facsimile or manual signatures of the Mayor and the City Clerk, and shall have
the seal of the City impressed or a facsimile thereof imprinted thereon.
DRAFT 11/7/02
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In case either or both of the officers who shall have executed any Bond shall
cease to be such officer or officers of the City before the Bond so signed shall have been
authenticated or delivered by the Registrar or issued by the City, such Bond nevertheless
may be authenticated, delivered and issued and upon such authentication, delivery and
issuance, shall be as binding upon the City as though those who signed the same had
continued to be such officers of the City. Any Bond also may be signed and attested on
behalf of the City by such persons as at the actual date of execution of such Bond shall be
the proper officers of the City although at the original date of such Bond such persons
were not such officers of the City.
Section 9. Authentication and Delivery of Bonds by Registrar. The Registrar is
authorized and directed, on behalf of the City, to authenticate and deliver Bonds initially
issued or transferred or exchanged in accordance with the provisions of such Bonds and
this Ordinance.
~.'
Only such Bonds as shall bear thereon a "Certificate of Authentication"'manually
executed by an authorized signatory of the Registrar shall be valid or obligatory for any
purpose or entitled to the benefits of this Ordinance. Such Certificate of Authentication
shall be conclusive evidence that the Bonds so authenticated have been duly executed,
authenticated and delivered hereunder and are entitled to the benefits of this Ordinance.
The Registrar shall be responsible for its representations contained in the
Certificate of Authentication on the Bonds.
Section 10. Registration: Transfer and Exchange. The Registrar shall keep, or
cause to be kept, the Bond Register at its principal corporate trust office.
DRAFT 1 I/7/02
For Discussion Purposes Only
The City and the Registrar, each in its discretion, may deem and treat the Owner
of each Bond as the absolute owner thereof for all purposes, and neither the City nor the
Registrar shall be affected by any notice to the contrary. Payment of any such Bond shall
be made only as described in Section 3 hereof, but such registration may be transferred as
herein provided. All such payments made as provided in Section 3 hereof shall be valid
and shall satisfy and discharge the liability of the City upon such Bond to the extent of
the amount or amounts so paid.
The registered ownership of any Bond may be transferred. Prior to the Book-
Entry Termination Date, the beneficial ownership of the Bonds may only be transferred
on the records established and maintained by the Custodian. On and after the Book-Entry
Termination Date, no transfer of any Bond shall be valid unless it is surrendered at any
principal corporate trust office of the Registrar, with the assignment form appearing on
such Bond duly executed by the Owner or such Owner's duly authorized agent, in a :
manner satisfactory to the Registrar. Upon such surrender, the Registrar shall cancel the
surrendered Bond and shall authenticate and deliver, without charge to the Owner or
transferee therefor (other than any governmental fees or taxes payable on account of such
transfer), a new Bond or Bonds (at the option of the new Owner), of the same maturity
and interest rate and for the same aggregate principal amount, in any authorized
denomination, naming as Owner the person or persons listed as the assignee on the
assignment form appearing on the surrendered Bond, in exchange for such surrendered
and cancelled Bond.
On and after the Book-Entry Termination Date, any Bond may be surrendered at
the principal corporate trust office of the Registrar and exchanged,'without charge, for an
DRAFT 11/7/02
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equal aggregate principal amount of Bonds, in any authorized denomination. The
Registrar shall not be obligated to transfer or exchange any Bond during the 15 days
preceding an interest or principal payment or redemption date.
The Registrar may become the Owner of any Bond with the same rights it would
have if it were not a Registrar and, to the extent permitted by law, may act as depository
for and permit any of its officers or directors to act as a member of, or in any other
capacity with respect to, any committee formed to protect the rights of the Owners of the
Bonds.
The City covenants that, until all Bonds shall have been surrendered and
cancelled, it will maintain a system of recording the ownership of each Bond that
complies with the provisions of the Code.
Section 11. Mutilated, Lost, Stolen or Destroyed Bonds. If any Bond becomes
mutilated, lost, stolen or destroyed, the Registrar may authenticate and deliver a new
Bond of the same maturity and interest rate and of like tenor and effect in substitution
therefor, all in accordance with law. If such mutilated, lost, stolen or destroyed Bond has
matured, the City at its option, may pay the same without the surrender thereof.
However, no such substitution or payment shall be made unless and until the applicant
shall furnish (a) evidence satisfactory to the Registrar of the destruction or loss of the
original Bond and of the ownership thereof, and (b) such additional security, indemnity
or evidence as may be required by or on behalf of the City. No substitute Bond shall be
furnished unless the applicant shall reimburse the City and the Registrar for their
respective expenses in the furnishing thereof. Any such substitute Bond so furnished
DRAFT 11/7/02
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shall be equally and proportionately entitled to the security of this Ordinance with all
other Bonds issued hereunder.
Section 12. Defeasance. If money and/or "Government Obligations" (as such
obligations are defined in Chapter 39.53 RCW, as now in existence or hereafter
amended) maturing at such times(s) and bearing such interest to be earned thereon
(without any reinvestment thereof) as will provide a series of payments which shall be
sufficient, together with any money initially deposited, to provide for the payment of the
principal of and interest on all or a portion of the Bonds, when due in accordance with
their terms in accordance with a refunding plan adopted by the City, are set aside in a
special fund (hereinafter called the "trust account") to effect such payment and are
pledged irrevocably for the purpose of effecting such payment, then no further payments
need be made into the Bond Fund for the payment of the principal of and the interest on
such Bonds, the Owners thereof shall cease to be entitled to any lien, benefit or security
of this Ordinance except for the right to receive the money and the principal and interest
proceeds on the obligations set aside in the trust account, and such Bonds shall no longer
be deemed to be outstanding hereunder.
Section 13. Sale of the Bonds. The Purchaser has presented the Purchase
Agreement to the City pursuant to which the Purchaser has offered to purchase the
Bonds, under the terms and conditions provided in the Purchase Agreement, which
written Purchase Agreement is on file with the City Clerk and is incorporated herein by
this reference. The City Council finds that entering into the Purchase Agreement is in the
City's best interest and therefore accepts the offer contained in the Purchase Agreement
and authorizes the execution of the Purchase Agreement by City officials.
DRAFT 11/7/02
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The Bonds will be prepared at City expense and will be delivered to the Purchaser
in accordance with the terms of the Purchase Agreement with the approving legal opinion
of the City's bond counsel relative to the issuance of the Bonds printed on each Bond or
attached thereto. Bond counsel has not been engaged to participate in the preparation or
review of, or express any opinion concerning the completeness or accuracy of the official
statement or other disclosure documentation used in connection with the offer or sale of
the Bonds by any person, and bond counsel's opinion shall so state. Bond counsel has
not been retained to monitor, and shall not be responsible for monitoring, the City's
compliance with any federal law or regulations to maintain the tax-exempt status of the
interest on the Bonds.
Section 14. Delivery of Bonds; Temporary Bonds. The proper City officials,
including the City Finance Director, are authorized and directed to execute and/or
approve, as appropriate, all documents, including but not limited to, the final Official .:'
Statement pertaining to the Bonds [and the commitment from for the
issuance of an insurance policy for the Bonds], and to do everything necessary for the
preparation and delivery of a transcript of proceedings pertaining to the Bonds, and the
printing, execution and prompt delivery of the Bonds to the Purchaser and for the proper
application and use of the proceeds of the sale thereof.
If definitive Bonds are not ready for delivery by the date established for Closing,
the City Finance Director, upon the approval of the Purchaser, may cause to be issued
and delivered to the Purchaser one or more temporary Bonds with appropriate omissions,
changes and additions. Any temporary Bond or Bonds shall be entitled and subject to the
same benefits and provisions of this Ordinance with respect to the payment, security and
DRAFT 11/7/02
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obligation thereof as definitive Bonds authorized hereby. Such temporary Bond or Bonds
shall be exchangeable without cost to the Owners thereof for definitive Bonds when the
latter are ready for delivery.
Section 15. Establishment of Bond Fund; Application of Bond Proceeds. There
is hereby created and established in the office of the City Finance Director a special
account in the City's Bond Fund to be designated as the "2002 Unlimited Tax General
Obligation Bond Account" (the "Bond Fund").
The accrued interest on the Bonds received by the City upon the sale of the
Bonds, if any, shall be deposited into the Bond Fund and shall be applied to the payment
of interest coming due on the Bonds. All of the remaining net proceeds of the Bonds
shall be deposited by the City into the Project Fund to pay the costs of the Project,
incidental costs thereto and costs of issuance of the Bonds.
Section 16. Tax-Exemption. The City covenants that it will not take or permit to
be taken on its behalf any action that would adversely affect the exclusion of the interest
on the Bonds from gross income for purposes of federal income taxation, and will take or
require to be taken such acts as may be permitted by Washington law and as may from
time to time be required under applicable law to continue the exclusion of the interest on
the Bonds from gross income for purposes of federal income taxation. Without limiting
the generality of the foregoing, the City will not invest or make or permit any use of the
proceeds of the Bonds or of its other money at any time during the term of the Bonds
which would cause the Bonds to be "arbitrage bonds" within the meaning of Section 148
of the Code.
16 [~l
DRAFT 11/7/02
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The City has not been notified of any listing or proposed listing by the Internal
Revenue Service to the effect that the City is a bond issuer the arbitrage certifications of
which may not be relied upon.
Section 17. Preliminary Official Statement Declaration. The City has
been provided with copies of the Preliminary Official Statement, prepared in connection
with the sale of the Bonds. For the sole purpose of the Purchaser's compliance with
Securities and Exchange Commission Rule 15c2-12(b)(1), the City "deems final" the
Preliminary Official Statement, as of its date, except for the omission of information on
offering prices, interest rates, selling compensation, delivery dates, ratings, other terms of
the Bonds dependent on such matters.
Section 18. Undertaking to Provide Continuing Disclosure. This section
constitutes the City's written undertaking for the benefit of the Owners and the Beneficial
Owners of the Bonds required by subsection (b)(5)(i) of the Rule.
;.'
The City hereby agrees to provide or cause to be provided to each then existing
NRMSIR and to the SID, if one is created, the following annual financial information and
operating data (collectively, the "Annual Financial Information") for each prior fiscal
year, commencing with the fiscal year ending December 31, 2002, on or before the last
day of the ninth month following the end of such prior fiscal year:
(a) Annual financial statements prepared in accordance with the generally
accepted accounting principles applicable to governmental units, as such principles may
be changed from time to time and as permitted by State law; which statements will not be
audited, except that if and when audited financial statements are otherwise prepared and
available to the City, they will be provided (the "Annual Financial Statements");
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(b)
(c)
(d)
Authorized, issued and outstanding balance of general obligation bonds;
The assessed valuation for the fiscal year
The regular property tax levy rate and excess property tax levy rate for the
fiscal year; and
(e) A narrative explanation of the reasons for any amendments to this
Section 18 made during the previous fiscal year and the impact of such amendments on
the Annual Financial Information being provided.
In its provision of such Annual Financial Information, the City may cross-reference
to any "final official statement" (as defined in the Rule) available from the MSRB or any
other documents theretofore provided to each then existing NRMSIR or the SID, if one is
created.
The City further agrees to provide or cause to be provided, in a timely manner, to
the SID, if one is created, and to either the MSRB or each then existing NRMSIR, notice
of any of the following events with respect to the Bonds, if material:
1. Principal and interest payment delinquencies;
2.
difficulties;
difficulties;
Non-payment related defaults;
Unscheduled draws on debt service reserves reflecting financial
4. Unscheduled draws on credit enhancements reflecting financial
5. Substitution of credit or liquidity providers, or their failure to
perform;
DRAFT 11/7/02
For Discussion Purposes Only
the Bonds;
Bonds; and
6. Adverse tax opinions or events affecting the tax-exempt status of
8.
9.
10.
Modifications to rights of the Owners of the Bonds;
Optional redemptions of the Bonds;
Defeasances of the Bonds;
Release, substitution or sale of property securing repayment of the
1 t. Rating changes.
The City also agrees to provide or cause to be provided, in a timely
manner, to the SID, if one is created, and to either the MSRB or each then existing
NRMSIR, notice of its failure to provide the Annual Financial Information for the prior
fiscal year on or before the last day of the ninth month following the end of such prior
fiscal year.
After the issuance of the Bonds, so long as the interests of the oWners or
Beneficial Owners of the Bonds will not be materially impaired thereby, as determined
by a party unaffiliated with the City (including, without limitation, a trustee for the
Owners, nationally recognized bond counsel or other counsel familiar with the federal
securities law), or pursuant to a favorable "no-action letter" issued by the SEC, this
Section 18 may only be amended in connection with any change in legal requirements,
change in law, or change in the identity, nature or status of the obligated person, or type
of business conducted, and only in such a manner that the undertaking of the City, as so
amended, would have complied with the requirements of the Rule at the time of the
19
DRAFT 11/7/02
For Discussion Purposes Only
primary offering, after taking into account any amendments or interpretations of the
Rule, as well as any change in circumstances.
The City's obligations to provide Annual Financial Information and notices of
certain events shall terminate without amendment upon the defeasance, prior redemption
or payment in full of all of the then outstanding Bonds. This Section 18 or any provision
hereof, shall be null and void if the City (i) obtains an opinion of nationally recognized
bond counsel or other counsel familiar with the federal securities laws to the effect that
those potions of the Rule which require this Section 18 or any such provision are invalid,
have been repealed retroactively or otherwise do not apply to the City; and (ii) notifies
and provides the SID, if any, and either the MSRB or each then existing NRMSIR with
copies of such opinion.
The right of each Owner and Beneficial Owner of Bonds to enforce the provisions
of this Section 18 shall be limited to the right to obtain specific enforcement of the City's
?
obligations under this Section 18, and any failure by the City to comply witl~ the
provisions of this undertaking shall not be a default with respect to the Bonds under this
Ordinance.
The City Finance Director is authorized and directed to take such further action
on behalf of the City as may be necessary, appropriate or convenient to carry out the
requirements of this Section 18.
Section 19. Contract; Severability. The covenants contained in this Ordinance
shall constitute a contract between the City and the Owners of each and every Bond. The
City unconditionally covenants that it will keep and perform all of the covenants of the
Bonds and this Ordinance. If any one or more of the provisions of this Ordinance shall
20
DRAFT 11/7/02
For Discussion Purposes Only
be declared unconstitutional or invalid for any reason, such decision shall not affect the
validity of the remaining provisions of this Ordinance or the Bonds, and this Ordinance
and the Bonds shall be construed and enforced as if such unconstitutional or invalid
provision had not been contained herein.
Section 20. Effective Date. This Ordinance shall take effect and be in full force
ten days after passage and publication of an approved summary, consisting of the title.
APPROVED by the City Council of the City of Bremerton, Washington, the
day of November, 2002.
PASSED by the City Council of the City of Bremerton, Washin~on, this ~
day of November, 2002.
Council President
APPROVED this day of November, 2002.
Cary Bozeman, Mayor
ATTEST:
Kathleen McCluskey, City Clerk
APPROVED AS TO FORM:
By
Judith Andrews, Bond Counsel
21
DRAFT 11/7/02
For Discussion Purposes Only
PUBLISHED:
EFFECTIVE DATE:
ORDINANCE NO.
22 Ig~
PREi_IMINARY OFFICIAL S TA TEMENT DA TED NO VEMBER 12, 2002
BOOK-ENTRY ONLY
NEW ISSUE MOODY'S RATING: Applied For
NEGOTIATED (See the caption "RATING" herein.)
In the opinion of Bond Counsel, as of the Date of Issue, and assuming the City fulfills its covenant to comply with certain requirements of the Internal Revenue Code
of 1986, as amended (the 'Code') that must be met subsequent to the issuance of the Bonds: interest on the Bonds is excluded from gross income for federal
income tax purposes, and is not an item of tax preference for purposes of determining the alternative minimum tax on individuals and corporations; and the Bonds
are "qualified tax-exempt obligations" for purposes of the partial interest expense deduction available under Section 265 of the Code. However, interest on the
Bonds is included in the computation of other taxes, including without limitation the alternative minimum tax on corporations, and may be subject to other collateral
tax consequences. See 'TAX EXEMPTION" and 'OTHER TAX CONSEQUENCES" herein.
CITY OF BREMERTON, WASHINGTON
$12,979,000
UNLIMITED TAX GENERAL OBLIGATION BONDS, 2002
DATED: December 1, 2002 DUE: December 1, as shown bpIow
The City's Unlimited Tax General Obligation Bonds, 2002 (the "Bonds"), are issued in fully registered form, and will be fully registered in the
name of Cede & Co., as Bondowner and nominee for The Depository Trust Company CDTC"), New York, New York. DTC will act as
securities depository for the Bonds. The Bonds will be initially issued in book-entry form only in the principal amount of $5,000 each or any
integral multiple thereof within a single maturity, with the exception of one bond maturing in 2003 in the amount of $4,000. Purchasers Will not
receive certificates representing their interest in the Bonds purchased. The Bonds bear interest payable on June 1, 2003 and each
December 1 and June 1 thereafter until maturity or prior redemption. The principal of and interest on the Bonds are payable by the fiscal
agency of the State of Washington currently The Bank of New York New York, New York (the "Registrar"). For so long as the Bonds pemain
in a "book-entry only" transfer system, the Registrar will make such payments only tc DTC, which wilt in turn remit such principal and interest
to the DTC participants for subsequent disbursement to Beneficial Owners of the Bonds as described in Appendix 15 - "DTC AND BOOK-
ENTRY SYSTEM" hereto.
Due
December1
2003
2004
2005
2006
2007
2008
2009
2010
2011
2012
2013
2014
2015
Amount
339 000
340 000
345 000
355 000
360 000
370 000
385 000
400 000
410 000
430 000
445 000
460 000
480 300
MATURITY SCHEDULE*
Yield or Due
Rate Price December 1 Amount Rate
% 2016 $ 500,000 %
2017 525,000
2018 545,O00
2019 570,000
2020 600,000
2021 630,000
2022 660,000
2023 690,000
2024 725,000
2025 765,000
2026 805,000
2027 845,000
(Plus accrued interest from December 1, 2002)
Yield or
Price
The Bonds maturing on or after December 1, 2013 are subject to redemption at the option of the City on or after December 1, 2012 as further
described herein under "DESCRIPTION OF THE BONDS - Optional Redemption and Open Market Purchase".
The Bonds are unlimited tax general obligations of the City. The City has irrevocably covenanted that, unless the principal of and interest on
the Bonds are paid from other sources, so long as the Bonds are outstanding, it will include in its budgets and make annual levies of taxes
without limitation as to rate or amount upon all of the property in the City subject to taxation in amounts sufficient, together with other money
legally available therefor to pay the principal of and interest on the Bonds as the same shall become due. The City has irrevocably pledged
its full faith, credit and resources to the annual levy and collection of such taxes for the prompt payment of such principal and interest. See
"DESCRIPTION OF THE BONDS - Security" herein.
The City has not designated the Bonds as "qualified tax-exempt obligations' under the Internal Revenue Code of 1986, as amended, for
banks, thrift institutions and other financial institutions. See "TAX EXEMPTION" and "OTHER TAX CONSEQUENCES" herein.
The Bonds are offered by the Underwriter when, as, and if issued, subject to the approving legal opinion of Gottlieb, Fisher & Andrews, PLLC,
Bond Counsel, Seattle, Washington, a copy of which opinion will be delivered with the Bonds. The Bonds in definitive book-entry form are
expected to be ready for delivery through the facilities of DTC in New York, New York, on or around December ~, 2002.
This cover page contains certain information for quick reference only. It is not a summary of this issue. Investors must read the entire Official
Statement to obtain information essential to making an informed investment decision.
Banc of America Securities LLC
* Preliminary, subject to change.
Representations
The Underwriter has provided the following sentence for inclusion in this Official Statement. The
Underwriter has reviewed the information in this Official Statement in accordance with, and as part of,
its responsibilities to investors under the federal securities laws as applied to the facts and circumstances
of this transaction, but the Underwriter does not guarantee the accuracy or completeness of such
information.
The delivery of this Official Statement does not imply that the information contained herein is correct as
of any time subsequent to the date of the Official Statement as shown on the cover page. Neither the City
nor the Underwriter has authorized any dealer, broker, salesperson or other persons to give any
information or make any representations other than those made in this Official Statement, and, if given or
made, such other information or representations must not be relied upon as having been authorized by the
City or the Underwriter. This Official Statement does not constitute an offer to sell, nor shall there be
any sale of the Bonds by any person in any jurisdiction in which it is unlawful for such person to make
such a sale.
Disclosure Statement
The City will deliver to the Underwriter at the time of delivery of the Bonds a signed statement
substantially to the effect that this Official Statement, as of its date and as of the date of the Bonds,
neither contains any untrue statement of a material fact nor omits to state any material fact necessary to
make the statements therein, in light of the circumstances under which they were made, not misleading in
any material respect and, to its knowledge, that there has not been any material adverse change in the
normal operations or financial condition of the City nor, to the best of the City's knowledge, in the
general economy of the City since the date of the Official Statement.
This Preliminary Official Statement, as of its date, is in a form "deemed final" by the City for purposes
of SEC Rule 15c2-12(b)(1) but is subject to revision, amendment, and completion in a final Official
Statement which will be available within seven days of the sale date.
Secondary Market
It has been the practice of the Underwriter to maintain a secondary market in municipal bonds which it
sells. The Underwriter intends to engage in secondary market trading of the Bonds, subject to applicable
securities laws. The Underwriter, however, is neither obligated to engage in secondary trading nor to
repurchase any of the Bonds at the request of the registered owners thereof and no assurance can be
given that a seconda~ market for the Bonds will be available.
In connection with the offering of the Bonds, the Underwriter may over-allot or effect 'transactions that
stabilize or maintain the market price of the Bonds at a level above that which might otherwise prevail in
the open market. Such stabilizing, if commenced, may be discontinued at any time.
CITY OF BREMERTON
Kitsap County, Washington
239 Fourth Street
Bremerton, Washington 98337
(360) 478-5290
MAYOR
Term Expires
December 31
Cary Bozeman 2005
CITY COUNCIL
Carol Arends Chairperson 2005
Wayne Olsen Member 2003
Daren Nygren Member 2005
Mike Shepherd Member 2005
Cecil McConnell Member 2003
Eric Younger Member 2003
Wil Maupin Member 2003
Edward Rollman Member 2003
Mike Short Member 2005
APPOINTED CITY OFFICIALS
Richard Saunders Interim Finance Director
Kathleen McCluskey Administrative Services Director/City C!grk
BOND COUNSEL
Gottlieb, Fisher & Andrews, PLLC
Seattle, Washington
UNDERWRITER
Banc of America Securities LLC
Seattle, Washington
iii [ q ~
TABLE OF CONTENTS
Page
Introduction .................................................................................................................................................. l
Description of the Bonds .............................................................................................................................. 1
Debt Payment Record ................................................................................................................................... 2
Future Financing .......................................................................................................................................... 2
Assessed Valuation Determination .............................................................................................................. 3
Tax Collection Procedure ............................................................................................................................. 3
Authorization of Debt ................................................................................................................................... 3
General Obligation Indebtedness ................................................................................................................. 3
Limits on Amount of General Obligation Indebtedness .............................................................................. 4
Authorization of Short-Term Debt ............................................................................................................... 4
Taxing Powers and Limitations .................................................................................................................... 4
Authorized Investments ................................................................................................................................ 5
Net Direct Debt and Estimated Net Overlapping General Obligation Debt ................................................ 6
Bonded Debt Ratios of the City ................................................................................................................... 6
Major Property Taxpayers ............................................................................................................................ 6
Statutory Debt Limit Calculation ................................................................................................................. 7
Ad Valorem Tax Record of the City ............................................................................................................ 7
Ad Valorem Property Tax Rates in the City ................................................................................................ 7
Comparative Statement of General Fund Revenues and Expenditures ........................................................ 8
Contingency Reserve Fund Year-End Balances .......................................................................................... 8
Amended General Fund Budget for 2002 .................................................................................................... 9
Schedule of General Obligation Bond Debt Service for the City .............................................................. 10
City Profile ................................................................................................................................................. 10
General and Economic Information ........................................................................... ;'. .............................. 12
Initiative and Referendum ......................................................................................... ~ ................................ 15
Original Issue Discount .............................................................................................................................. 15
Original Issue Premium .............................................................................................................................. 16
Preservation of Tax Exemption .................................................................................................................. 16
Conflicts of Interest .................................................................................................................................... ! 6
Tax Exemption ........................................................................................................................................... ! 6
Other Tax Consequences ............................................................................................................................ 17
Absence of Material Litigation .................................................................................................................. 17
Approval of'Bond Counsel ......................................................................................................................... 18
Continuing Disclosure ................................................................................................................................ 18
Rating ....................................................................... : ................................................................................. 19
Underwriting .............................................................................................................................................. 19
Concluding Statement ................................................................................................................................ 19
Form of Legal Opinion ................................................................................................................ Appendix A
DTC and Book-Entry System ...................................................................................................... Appendix B
PRELIMINARY OFFICIAL STATEMENT
CITY OF BREMERTON, WASHINGTON
$12,979,000
UNLIMITED TAX GENERAL OBLIGATION BONDS, 2002
INTRODUCTION
The City of Bremerton, Washington (the "City"), a municipal corporation duly organized and existing under and
by virtue of the laws of the State of Washington ("the State"), furnishes this Official Statement in connection
with the offering of $12,979,000 principal amount of Unlimited Tax General Obligation Bonds, 2002 (the
"Bonds"). This Official Statement provides information concerning the City and the Bonds.
DESCRIPTION OF THE BONDS
Principal Amounts, Date, Interest Rates, and Maturities
The Bonds will be issued in the principal amount of $12,979,000 and will be dated and bear interest from
December 1, 2002 until their stated maturity or prior redemption. The Bonds will mature annually on December
1, commencing December 1, 2003, in the amounts and will bear interest payable semi-annually, on each June 1
and December 1, commencing June 1, 2003, at the rates set forth on the cover page of this Official Statement.
Interest on the Bonds will be computed on the basis of a 360-day year of twelve 30-day months.
Form, Denomination and Registrar
The Bonds will be issued in fully registered form as to both principal and interest in the denomination of $5,000
or any integral multiple thereof within a single maturity, with the exception of one bond maturing in 2003 in the
amount of $4,000. The Bonds, when issued, will be registered in the name of Cede & Co., as registered owner
and nominee of The Depository Trust Company, New York, New York ("DTC").
Optional Redemption and Open Market Purchase
The Bonds maturing in years 2003 through 2012, inclusive, are not subject to redemption prior to maturity. The
Bonds maturing on or after December 1, 2013 are subject to redemption prior to maturity at the option of the City
in whole or in part on any date (maturities to be selected by the City and by lot within a maturity in such a
manner as the Registrar shall determine), commencing on December 1, 2012, at a price of par, plus accrued
interest to the date fixed for redemption.
Any Bond in the principal amount of greater than $5,000 may be partially redeemed in any integral multiple of
$5,000. Prior to the date of termination of the book-entry system ("Book-Entry Termination Date"), Bonds shall
be partially redeemed in accordance with the Letter of Representations. In the eventi0f a partial redemption ora
Bond, from and after the Book-Entry Termination Date, upon surrender of such Bond at ~the principal corporate
trust office of the Registrar, a new Bond or Bonds (at the option of the Owner) of the same maturity and interest
rate and in the aggregate principal amount remaining unredeemed shall be authenticated and delivered to the
Owner, without charge to the Owner therefor, in any denomination authorized by the Ordinance and selected by
thc Owner.
The City reserves the right and option to purchase any or all of the Bonds in the open market at any time at any
price.
Notice of Redemption
Prior to the Book-Entry Termination Date, the Registrar shall give, or cause to be given, notice of a call for
redemption of any Bonds to the Custodian, as the Owner thereof, for the benefit of the Beneficial Owners
thereof, in accordance with the Letter of Representations. From and after the Book-Entry Termination Date,
notice of any such intended redemption shall be given by or on behalf of the City not less than 30 nor more than
60 days prior to the date fixed for redemption by first-class mail, postage prepaid, to the Owner of each Bond to
be redeemed at the address appearing on the Bond Register on the day the notice is given. These requirements
shall be deemed to be complied with when notice is mailed as described above, whether or not it is actually
received by the Owner.
Paying Agent
Principal of and interest on the Bonds will be payable by the State fiscal agency (the "Registrar") in New York,
New York, or Seattle, Washington, currently The Bank of New York, New York, New York (or such other fiscal
agency or agencies as the City Treasurer may from time to time designate). Prior to the Book-Entry Termination
Date, principal of and interest on the Bonds are payable by wire transfer by the Registrar to DTC, which, in turn,
is obligated to remit such principal and interest to the DTC Participants for subsequent disbursement to the
Beneficial Owners of the Bonds, as further described in APPENDIX B - "DTC AND BOOK ENTRY SYSTEM"
hereto.
Book-Entry Transfer System
DTC will act as securities depository for the Bonds (the "Custodian"). Individual purchases may be made in
book-entry form only. Purchasers will not receive certificates representing their interest in the Bonds purchased.
So long as Cede & Co. is the registered owner of the Bonds, as nominee of DTC, references herein to the
registered owners or Owners will mean Cede & Co. and will not mean the "Beneficial Owners" of the Bonds. In
this Official Statement, the term "Beneficial Owner" will mean the person for whom a DTC participant acquires
an interest in the Bonds. See APPENDIX B - "DTC AND BOOK-ENTRY SYSTEM" hereto.
Termination of Book-Entry Transfer System
If the City is unable to retain a qualified successor to DTC or the City has determined that it is in the best interest
of the City not to continue the book-entry system of transfer or that interests of the Beneficial Owners of the
Bonds might be adversely affected if the book-entry system of transfer is continued, the City will execute,
authenticate and deliver at no cost to the Beneficial Owners of the Bonds or their nominees, Bonds in fully
registered form, in the denomination of $5,000 or any integral multiple thereof within a single maturity.
Thereafter, interest on the Bonds shall be paid by check or draft mailed on or before the interest payment date, to
the persons identified as the Owners on the fifteenth day of the month preceding the interest payment date at the
addresses shown for the Owners on the Bond Register. Principal of the Bonds shall be payable upon presentation
and surrender of the Bonds by the Owners at the principal corporate trust office of the Registrar.
Authorization
The Bonds are issued in accordance with the provisions of the Constitution and applicable statutes of the State,
pursuant to Ordinance No. __ (the "Ordinance") of the City Council, adopted on November __, 2002, and the
results ora special election held within the City as September 17, 2002. Final election results are as follows:
Number of Votes Percentage
Yes 3,915 65.91%
No 2,025 34.09
Total 5,940 100.00%
Authorization for any general obligation bond issue requires that 40% of the qualified electorate voting in the last
general election must cast a ballot and 60% of the qualified electorate voting must approve the issue. The final
results of the election have been certified by the Kitsap County Auditor.
Security
The Bonds are unlimited tax general obligations of the City. The City has irrevocably covenanted in the
Ordinance that, unless the principal of and interest on the Bonds are paid from other sources, so long as the
Bonds are outstanding, it will include in its budgets and make annual levies of taxes without limitation as to rate
or amount upon all of the property in the City subject to taxation in amounts sufficient, together with other
money legally available therefor to pay the principal of and interest on the Bonds as the same shall become due.
The City has irrevocably pledged its full faith, credit and resources to the annual levy and collection of such taxes
and for the prompt payment of such principal and interest.
The rights and remedies of anyone seeking enforcement of the Bonds are subject to applicable bankruptcy,
insolvency, reorganization, moratorium laws or other similar laws generally affecting creditors' rights and also to
the exercise of judicial discretion in accordance with general principles of equity
Purpose
The proceeds of the Bonds will be used to acquire additional police vehicles, fire trucks, apparatus and
equipment, acquisition of land and construction, remodeling and equipping new fire, police and cou~ facilities.
A portion of Bond proceeds will be used to pay the costs associated with issuing the Bonds.
Failure to Pay the Bonds at Maturity
If any Bond is not paid upon proper presentment at its maturity, the City is obligated to pay interest on that Bond
at the same rate provided in the Bond from and after such maturity date until such Bond, both principal and
interest, is paid in full.
DEBT PAYMENT RECORD
The City has always promptly met principal and interest payments on outstanding o. bligations when due.
Additionally, no refunding bonds have been ~ssued for the purpose of preventing an imPending default.
FUTURE FINANCING
The City is anticipating selling revenue bonds for the construction of a parking garage as part of a new
conference center sometime in 2003, the size of which has not yet been determined. See "GENER_AL AND
ECONOMIC INFORMATION - New Developments" herein.
ASSESSED VALUATION DETERMINATION
In the State, the County Assessor (the "Assessor") determines the value of all real and personal property
throughout the County (including the City) which is subject to ad valorem taxation. The Assessor's duties and
methods of determining value are prescribed and controlled by statute and by detailed regulations promulgated by
the State Department of Revenue. For tax purposes the assessed value of property is set at 100% of its actual
value. Property in Kitsap County (the "County") is revalued annually based on market sales and receives an on-
site appraisal every six years. The property is listed by the Assessor on a tax roll at its current assessed value and
the tax roll is filed in the Assessor's office.
The Assessor's determinations are subject to revision by the County Board of Equalization and, for certain
property, subject to further revision by the State Board of Equalization. After ali administrative procedures are
completed, the taxing unit receives the Assessor's final certificate of assessed value of property within the taxing
unit.
TAX COLLECTION PROCEDURE
Property taxes are levied in specific amounts, and the rate for all taxes levied for all taxing districts in the County
(including the City) are determined, calculated and fixed by the Assessor based upon the assessed valuation of
the property within the various taxing districts. The Assessor extends the taxes to be levied within each taxing
district upon a tax roll which contains the total amount of taxes to be so levied and collected and assigns a tax
account number to each tax lot. The tax roll is delivered to the County Treasurer by January 15 of each year, and
an abstract of thc tax roll, showing the total amount of taxes collectible in each of the taxing districts for the year,
is delivered to the Board of County Commissioners at the same time. All taxes are due and payable on the 30th of
April of each year, but if the amount due from a taxpayer exceeds $30.00, one-half may be paid then and the
balance no later than October 31 of each year.
The method of giving notice of payment of taxes due, accounting for the money collected, the division of the
taxes among the various taxing districts, giving notice of delinquency, and collection procedure are all covered
by detailed statutes. The lien for ad valorem property taxes which have been levied prior to the filing of federal
tax liens is prior to such federal tax liens.
In other respects, and subject to the possible "Homestead Exemption," the lien for delinquent property taxes is
prior to all other liens or encumbrances of any kind on real or personal property subject to taxation. By law
(chapter 6.13 RCW) the taxing unit may commence foreclosure of a tax lien on real property after three years
have passed since the first delinquency. Washington State's courts have not decided whether the Homestead
Exemption may give the occupying home owner a right in the forced sale of the fam!ly residence for delinquent
general property taxes to retain the first $40,000 of proceeds of the sale. (See Algona vs.. Sharp, 30 Wn. App.
837, 638 P.2d 627 (1982), holding the homestead right superior to liens for local improvement district
assessments).
AUTHORIZATION OF DEBT
The power of the City to contract debt of any kind is controlled and limited by state law. All debt must be set
forth in accordance with detailed budget procedures and paid for out of identifiable receipts and revenues. The
budget must be balanced for each fiscal year. It is unlawful for an officer or employee of the City to incur
liabilities in excess of budgetary appropriations.
GENERAL OBLIGATION INDEBTEDNESS
Under the Constitution and statutes of tile State, the City may incur two types of general obligation indebtedness,
differentiated by the limits on the real and personal property taxes which may be collected for the payment
thereof.
Limited tax general obligation indebtedness is payable from taxes upon all the taxable property in the City which
may be imposed by the City within the limitations prescribed by State statute without a vote of the people
(sometimes referred to as "non-voted debt" or "non-voted bonds," or "councilmanic bonds" or "limited tax
bonds"). The statutory limits on the levy of such taxes are described in the section herein entitled "LIMITS ON
AMOUNT OF GENERAL OBLIGATION INDEBTEDNESS."
Unlimited tax general obligation indebtedness is payable from taxes without limitation as to rate or amount,
imposed upon all taxable property in the City. Unlimited tax indebtedness may be incurred only after approval by
60% of the City voters at an election in which the total vote cast exceeds 40% of the votes cast at the last
preceding general election of the City or State. Such unlimited tax indebtedness is sometimes referred to as
"voted debt," "voted bonds" or "unlimited tax bonds."
3
Bonds issued to refund outstanding general obligation indebtedness of either type may be issued without voter
approval.
LIMITS ON AMOUNT OF GENERAL OBLIGATION INDEBTEDNESS
State statutes limit the total principal amount of all City general obligation indebtedness incurred for "general"
purposes, for both limited tax and unlimited tax, to 2.5% of the actual value of taxable property within the City.
Within this 2.5% limitation, non-voted indebtedness is further limited to 1.5% of the value of such taxable
property.
The City is additionally authorized to incur general Obligation indebtedness for the following "special" purposes,
with voter approval, in the total principal amount of up to the following percentages of the actual value of taxable
property within the City: water, artificial light and sewers, 2.5%; open space and park facilities, 2.5%; and capital
facilities associated with economic development, 2.5%. The combination of unlimited tax and limited tax
general obligation debt for all purposes cannot exceed 7.5% of the City's assessed valuation.
The State statutory limits on City general obligation indebtedness described in this section are more restrictive
than those contained in the State Constitution. Both the Constitutional and statutory debt limits may be exceeded
if necessary to meet obligations made mandatory by State law or, if necessary, to maintain the corporate
existence of the City.
In computing total general obligation indebtedness, the following "assets" may be deducted against the principal
amount of indebtedness outstanding: (a) money and investments on deposit in general obligation bond retirement
funds: (b) taxes (both current and delinquent) levied for the payment of general obligation indebtedness; and (c)
delinquent (but not current) taxes due the general fund.
In addition to limits on the total principal amount of general obligation indebtedness described in this section, the
Constitution and statutes of the State impose other limitations on the City's levy of taxes upon real and personal
property (see section herein entitled "TAXING POWERS AND LIMITATIONS").
AUTHORIZATION OF SHORT-TERM DEBT
As a result of 1982 legislation, any Washington municipal corporation may borrow money, and issue short-term
obligations, the proceeds of xvhich may be used for any lawful purpose. Short-term obligations may be issued in
anticipation of the receipt of revenues, taxes, or grants or the sale of (1) general obligation bonds if the bonds
may be issued without the consent of the voters or if previously ratified by the voters; (2) revenue bonds if the
bonds have been authorized by ordinance or resolution; or (3) local improvement district bonds if the bonds have
been authorized by ordinance or resolution. These short-term obligations shall be repaid out of money derived
from the source or sources in anticipation of which they were issued or from any money legally available for this
purpose.
Additionally, the City may incur short-term indebtedness in the following ways: first, in an emergency, the City
Council members may put a plan into effect and authorize indebtedness outside the current budget. All
expenditures for emergency purpose shall be paid by warrants from any available money in the fund properly
chargeable with such expenditures. If there is insufficient money on hand in the fund, the warrants become
registered interest-bearing warrants. In adopting, the budget for any fiscal year, the City Council members shall
appropriate funds to retire any outstanding registered warrants issued since the adoption of the last preceding
budget. Second, the City may, without a vote of the electors, purchase property on a conditional sales contract if
the total contract amount, together with the other non-voted general obligation indebtedness of the City, does not
exceed 3/4 of I% of the value of taxable property in the City; any property so purchased must be budgeted for
payment in accordance with the terms of the contract.
TAXING POWERS AND LIMITATIONS
Pursuant to RCW 84.52.043, cities may levy, without a vote of the residents residing therein, a maximum of
$3.375 per thousand for general city purposes (the "regular levy"). Cities with full-time firemen, such as the City,
may lev)' an additional $0.225 per thousand to fund the city's Fireman's Pension Fund (chapter 41.16.060 RCW),
thus creating a maximum annual levy rate of $3.60 per thousand. The City is currently levying $3.30 per
thousand dollars of taxable assessed valuation for its regular levy.
According to RCW 27.12.390, any city or town annexed to a rural library district, island library district, or inter-
count)' rural library district, such as the City, shall be entitled to levy up to $3.60 per thousand dollars of assessed
valuation less any regular levy made by such library district in the incorporated area, notxvithstanding any other
provision of law.
4
101% Limitation
Initiative 747 ('%747") was approved by the voters on November 6, 2001. 1-747 reduces the limit on the
maximum total dollar amount of regular property taxes that may be levied annually by a taxing district (in¢ltiding
the City) without a vote of its electors from 106% to the lesser of (i) 101% of the highest levy in the three
previous years (excluding new construction, improvements, and State~assessed property), or (ii) inflation as
measured by the implicit price deflator. The Bonds are payable from and secured by voter-approved excess
property taxes, without limitation as to rate or amount. Therefore, 1-747 will not affect the City's authority to
levy excess property taxes for the payment of thc Bonds.
AUTHORIZED INVESTMENTS
Chapter 39.59 RCW limits the investment of public funds to the following authorized investments: bonds of the
State and any local government in the State, which bonds are rated at the time of investment in one of the three
highest credit ratings by a nationally recognized rating agency; general obligation bonds of other states and
subdivisions thereof so long as those bonds are rated in one of the three highest categories; registered warrants of
a local government within the same county as the entity making the investment; and any investment authorized by
law for the treasurer of the State or any local government exclusive of certificates of deposit of banks or bank
branches not located in the State. Under chapter 43.84 RCW, the State Treasurer may invest in non-negotiable
certificates of deposit in designated qualified public depositories; in obligations of the U.S. go. vernment, its
agencies and wholly owned corporations; in bankers' acceptances; in commercial paper; m repurchase
agreements; in the obligations of the federal home loan bank, federal national mortgage association and other
government corporations subject to statutoD' provisions. Utility revenue bonds and warrants of any city and
bonds or warrants of a local improvement district are also eligible investments (RCW 35.39.030).
Any municipal corporation, including the City, may authorize the investment of funds not required for immediate
expenditure by the County Treasurer. Such funds of the City, including debt service funds, may be invested by
the County Treasurer. The County Treasurer may, upon the request of one or more units of local government that
invest their money with the County, combine that money for the purposes of investment (RCW 36.29.022). The
office of the County Treasurer receives up to five percent of the earnings on such investments, subject to a
maximum of $50 on each transaction, as its investment service fee. The County Treasurer may reimburse its
office for any expenses incurred in the establishment and maintenance of such a County investment pool (RCW
36.29.024).
Local Government Investment Pool
The State Treasurer's Office administers the Washington State Local Government Investment Pool (the "LGIP"),
a $4.5 billion fund that invests money on behalf of 415 cities, counties and spec:ial taxing districts. In its
management of LGIP, the State Treasury adheres, at all times, to the principles appropriate for the prudent
investment of public funds. These are, in priority order, (i)the safety of principal; (ii) the'assurance of sufficient
liquidity to meet cash flow demands; and (iii) to attain the highest possible yield within the constraints of the first
two goals. Historically, the LGIP has had sufficient liquidity to meet all cash flow demands.
The LGIP, authorized by chapter 43.250 RCW, is a voluntary pool that provides its participants the opportunity
to benefit from the economies of scale inherent in pooling. It is also intended to offer participants increased
safety of principal and the ability to achieve a higher investment yield than would otherwise be available to them.
The LGIP is a managed, highly liquid money market fund. The pool is restricted to investments with maturities of
one year or less, and the average investment life typically is less than 90 days. Permissible investments include
U.S. government and agency securities, bankers' acceptances, high quality commercial paper, repurchase and
reverse repurchase agreements, and certificates of deposit issued by qualified Washington State depositories.
Authorized Investments for Bond Proceeds
In addition to the eligible investments discussed above, bond proceeds only may also be invested in mutual funds
with portfolios consisting of U.S. government and guaranteed agency securities with average maturities of less
than four years; municipal securities rated in one of the four highest categories; and money market funds
consisting of the same, so long as municipal securities held in the fund(s) are in one of the two highest rating
categories. Bond proceeds may also be invested in shares of money market funds with portfolios of securities
otherwise authorized by law for investment by local governments (RCW 39.59.030).
The City's Investments
The investments of the City, except those of the Community Development Block Grant Fund, are managed in a
pooled format. Interest earnings are distributed monthly to the individual funds based on their respective
balances at the beginning of the month. These pooled investments are classified on the balance sheet as cash and
equivalents. As required by State statue, all investments and deposits of the City's funds are obligations of the
U.S. Government, U.S. agency issues, deposits with the State Treasurer's LGIP, prime bankers' acceptances,
5
deposits with State banks and savings and loan institutions or repurchase agreements with authorized securities as
collateral.
NET DIRECT DEBT AND ESTIMATED NET
OVERLAPPING GENERAL OBLIGATION DEBTl
(As of August 31, 2002)
Direct Debt:
¥oted General Obligation Bonds Outstanding ...........................................
The Bonds ..................................................................................................
Non-Voted Bonds Outstanding .................................................................
Bank Line of Credit Outstanding ...............................................................
Less: Debt Service Fund Balance ..............................................................
Net Direct Debt ....................................................................
Estimated Net Overlapping Debt as of September 30, 2002: Net G.O. Debt
Taxing District
Kitsap County.
Port of Bremerton ..............................
Bremerton Sch. Dist. No. 100 ..............
Central Kitsap Sch. Dist. No. 401 ........
South Kitsap Sch. Dist. No. 402 ..........
$ 630,000
12,979,000
10,110,000
50,388
{233,890)
Percent of Amount of
Outstanding Overlap Overlap
$ 88,949,583 9.611% $ 8,612,445
100,000 23.99 23,990
19,535,000 73.86 14,428,075
72,060,000 0.94 679,584
4,140,170 0.39 16,082
Estimated Net Overlapping Debt: .......................................................
Net Direct Plus Estimated Net Overlapping Debt: .....................................................
$ 23,535,498
$ 23,760,176
$ 47,295,674
BONDED DEBT RATIOS OF THE CITY
Preliminary Assessed Valuation for Collection Year 20032 .........................................
Estimated City Population (2002)3 ........................................................................
Assessed Valuation Per Capita .............................................................................................
Net Direct Debt to Assessed Valuation .................................................................................
Net Direct and Estimated Overlapping Debt to Assessed Valuation ....................................
Net Direct Debt Per Capita ..................................................................................................
Net Direct and Estimated Overlapping Debt Per Capita ......................................................
MAJOR PROPERTY TAXPAYERS4
CITY OF BREMERTON
Taxpayer
Puget Sound Energy (Electric)
US West Communications Inc. (Qwest)
Northwest Corporate Campus LLC
Cormolly, Michael
Bay Pointe Retirement Community LLC
Merit Company
Erlands Associates LLC
Viewcrest Alliance Apts. LLC
Fir Lane Terrace Convalescent Center
Beta Ballard LLC
KPS Health Plans
Cascade Natural Gas Corporation
Bremerton Cascade Association
Bayview Hotel Associates LLC
$ 1,568,585,817
37,530
$ 41,791
1.50%
3.02%
$ 627
$ 1,260
Assessed Valuation for
Business 2002 Collection Year
Utility $ 34,404,575
Utility 21,059,3 93
Business Park 12,509,540
Retail, Parking 8,242,000
Retirement Center 7,018,000
Retail 6,729,000
Apartments 6,688,000
Apartments 6,683,000
Convalescent Center 6,504,000
Retail 6,231,000
Health Care 6,137,082
Utility 5,886,944
Retirement Center 5,197,500
Hotel/Motel 4,974,000
I Includes the Bonds. Sources: the City. and Kitsap County Assessor's and Treasurer's offices.
2 Assessed valuation for tax collection year 2003 is stated as the full preliminary assessed value of all taxable real and personal property
in the City, as of October 1, 2002.
3 Source: Washington State Office of Financial Management.
4 Source: Kitsap County Assessor's Office.
STATUTORY DEBT LIMIT CALCULATION~
(As of August 31, 2002)
2002 Preliminary Assessed Valuation for Collection Year 2003 ........................... $
General Purposes
a. Non-Voted Indebtedness Limit (1.5% of Assessed Valuation) ..................................... $
Less: Non-Voted Bonds Outstanding .....................................................................
Less: Bank Line of Credit Outstanding ..................................................................
Plus: Cash and Investments in Debt Service Funds ................................................
Remaining Capacity for General Purposes (Non-voted) ................................. $
b. Voted Indebtedness Limit (2.5% of Assessed Valuation) ............................................. $
Less: Voted Bonds Outstanding (including the Bonds) ..........................................
Less: Bank Line of Credit Outstanding ...................................................................
Less: Non-Voted Bonds Outstanding .....................................................................
Plus: Cash and Investments in Debt Service Funds ................................................
Remaining Capacity for General Purposes (Voted) ......................................... $
Utility Purposes (2.5% of Assessed Valuation)
Limit .............................................................................................................................. $
]-ess: Bonds Outstanding ........................................................................................
Remaining Capacity for Utility Purposes ........................................................ $
Parks and Open Space and Economic Development Purposes (2.5% of Assessed Valuation)
Limit .............................................................................................................................. $
Less: Bonds Outstanding ........................................................................................
Remaining Capacity for Parks and Open Space Purposes ............................... $
1,568,585,8172
23,528,787
(lO, llO,OOO)
(50,388)
o
13,368,399
39,214,645
(13,609,000)
(50,388)
(10,110,000)
233,890
15,679,147
39,214,645
0
39,214,645
39,214,645
0
39,214,645
AD VALOREM TAX RECORD OF THE CITY3
Collection Taxable Assessed Tax Collected Year of Levy
Year Valuation4 Levy5 Amount Pe~ent
2002 $ 1,507,101,8992 $ 5,959,303 NA6 HA6
2001 1,482,231,297 5,846,389 $ 5,571,559 95.30%
2000 1,410,350,733 5,622,110 5,328,636 94.78
1999 1,343,271,067 5,431,058 5,150,435 94.94
1998 1,345,904,065 5,450,559 5,219,429 95.76
1997 1,299,548,001 4,953,030 4,702,202 94.94
NOTE:
Collected as of September 30, 2002
Amount Percent
NA6 HA6
5,728,062 95.30%
5,571,330 99.10
5,414,833 99.70
5,446,21 1 99.92
4,947,571 99.89
Taxes are due and payable on April 30, of each year. At least one half of the tax amount due must be paid on or before April
30, or else the total amount becomes delinquent on May 1. The second half of the tax due is payable on or before October 31,
becoming delinquent November 1.
AD VALOREM PROPERTY TAX RATES IN THE CITY?
(Rates In Dollars per $1,000 of Assessed Valuation)
City Emerg.
Collection General City State Kitsap Port of School Dist. Medical Regional
Year Fund Bonds Schools County Bremerton No. 100 PUD Services Library Total
2002 $3.3000 $ 0.1502 $ 3.1475 $ 1.6699 $ 0.5025 $ 4.8160 $ 0.1064 $ 0.4962 $ 0.4834 $14.6721
2001 3.2908 0.1552 3.0951 1.5181 0.4865 4.8083 0.0975 0.4949 0.5000 14,4464
2000 3.3250 0.1578 3.2808 1.8552 0.5006 4.9954 0.1008 0.5000 0.5000 15.2150
1999 3.3250 0.2126 3.3178 1.8125 0.4814 5.1422 0.1017 0.5000 0.5000 15.3932
1998 3.3250 0.2218 3.5911 1.3908 0.4624 5.0292 0.1017 0.5000 0.5000 15.1220
1 Includes the Bonds. Sources: the City and Kitsap County Assessor's and Treasurer's offices.
2 Preliminary assessed value for 2003 provided by the Kitsap County Assessor's office as of October 1, 2002, is $1,568,585,817.
3 Source: Kitsap County Treasurer's and Assessor's offices.
4 Assessed valuation is stated as the assessed valuation of all taxable real and personal property in the City.
5 Includes all City levies.
6 Not available.
7 Source: Kitsap Count), Treasurer's Office.
Revenues: Taxes
Licenses & Permits
Intergovernmental
Charges for Services
Fines & Forfeits
Miscellaneous
COMPARATIVE STATEMENT OF GENERAL FUND
REVENUES AND EXPENDITURES'
(Fiscal Year Ended December 31)
2001 2000 1999
998 1997
$ 18,167,334 $ 17,649,595 $ 16,942,624 $ 16,201,397 $ 15,678,923
459,064 485,403 376,370 314,340 348,796
1,230,912 1,265,902 1,114,093 1,027,234 812,436
2,145,514 1,905,933 1,870,719 1,596,652 1,762,945
820,980 614,494 500,039 446,715 512,828
891,313 331,756 324,931 383,402 29q),343
Total Revenues
$ 23,715,117 $ 22,253,083 $ 21,128,776 $ 19,969,740 $ 19,406,271
Expenditures:
General Government
Security of Persons & Prop.
Physical Environment
Transportation
Economic Environment
Mental & Physical Health
Culture & Recreation
Redemption of LTGO Debt
Debt Service
Capital Outlay
$ 4,544,209 $ 4,182,217 $ 4,035,899 $ 4,075,157 $ 4,199,525
13,084,673 12,249,891 11,940,351 1 1,685,742 10,893,020
422,835 469,008 549,929 555,693 613,338
1,476,736 1,107,054 l, 133,438 986,816 923,064
556,917 718,671 826,067 862,864 507,996
52,815 24,831 24,632 24,632 24,632
2,084,506 1,698,390 1,853,003 1,780,180 1,768,867
0 0 0 4,194 2,688
63,984 51,363 55,989 57,478 74,055
577,789 304,473 198.269 208,697 298,438
Total Expenditures
$ 22,864,464 $ 20,805,898 $ 20,617,577 $ 20,241,453 $ 19,305,623
Other Financing Sources (Uses)
Operating Transfers In
Operating Transfers Out
General Fixed Assets Disp.
Proceeds of LTGO Debt
$ 216,210 $ 192,117 $ 254,457 $ 251,251 $ 113,144
(1,104,412) (701,269) (394,624) (397,4281 (406,836
23,808 17,864 21,423 15,316 15,568
0 0 0 : 0 16.629
Total Other Financing Sources
(Uses)
$ (864,394) $ (491,288) $ (118,744) S (130,861 $ (261,495)
Fund Balance, January 1
Prior Year's Corrections
Residual Equity Transfers
Other Equity Changes
$ 1,663,890 $ 714,973 $ 314,484 $ 701,726 $ 861,135
0 0 0 0 0
10,586 0 477 0 0
(4.744) (6,980) 7,557 15,332 1,438
Total Ending Fund Balance
$ 1.655~991 $ 1.663.89~0 $ 714,973 $ 314:484 $ 701,726
Ending Fund Balance
CONTINGENCY RESERVE FUND
YEAR-END BALANCES2?
(as of December 31)
2001 2000 1999
$ 854,009 $ 835,439 $ 697,517
1998 1997
$ 709,162 $ 706,947
! Source: City of Bremerton Annual Financial Reports. All years have been audited by the Washington State Auditor's Office.
2 Source: Kitsap County Assessor's Office.
3 $650,000 is the minimum per City policy. Interest earnings on the balance is transferred to the General Fund in the following year.
8 Iqq
AMENDED GENERAL FUND BUDGET FOR 20021
(Fiscal Year Ending December 31)
BEGINNING CASH
REVENUES Taxes
Licenses and Permits
Intergovernmental Revenue
Charges for Services
Fines and Forfeitures
Miscellaneous and Other
Tax Anticipation Note
Total Revenue
Total Resources
EXPENDITURES
General Government
City Council
Executive
Administrative Services2
Police & Fire Pension
Parking
Intergovernmental Service
Misc. Non-Departmental
Legal Department
Human Resources
Building & Planning
City Auditor
Public Safety
Police Department
Fire Department
Public Works
General Facilities
Engineering
Equipment Services Division
Leisure Services
General Parks
Recreation
Aquatics
Tax Anticipation Note Debt Service
Ending Cash
Total Current Expenditures
$ 2,220,000
$ 18,291,000
411,700
1,184,132
2,084,106
828,200
1,667,591
1,250,000
$ 25,716,729
$ 27,936,729
171,047
247,991
2,717,449
1,727,047
615,000
194,513
2,048,320
419,909
270,662
776,116
140,907
6,825,201
4,804,483
473,705
293,362
1,429,867
1,321,179
661,046
298,925
1,250,000
1,250~000
27,936,729
Source: City of Bremerton.
Includes Cit3, Clerk, Treasurer, Information Services, Municipal Court and Risk Management.
9 c~0b
SCHEDULE OF GENERAL OBLIGATION BOND DEBT SERVICE FOR THE CITYl
(Years Ending December 31)
Outstanding Non-Voted Outstanding
General Obligation Voted General Total
Bonds Obliqation Bonds The Bonds2 Debt
Year Principal Interest Principal Interest Principal Interest Service
2002 $ 950,000 $ 493,808 $ 190,000 $ 32,648 ...... $ 1,666,456
2003 455,000 450,742 205,000 23,906 $ 339,000 $ 555,814 2,029,462
2004 480,000 430,350 135,000 16,307 340,000 549,712 1,951,369
2005 500,000 408,646 140,000 10,085 345,000 543,082 1,946,813
2006 520,000 385,394 150,000 3,450 355,000 535,147 1,948,991
2007 545,000 360,702 ...... 360,000 526,094 1,791,796
2008 575,000 334,503 ...... 370,000 515,654 1,795,157
2009 600,000 306,392 ...... 385,000 503,629 1,795,021
2010 630,000 276,798 ..... 400,000 490,347 1,797,145
2011 670,000 245,180 ...... 410,000 475,747 1,800,927
2012 700,000 211,435 ...... 430,000 460,372 1,801,807
2013 450,000 175,500 ...... 445,000 443,817 1,514,317
2014 475,000 153,595 ...... 460,000 426,017 1,514,612
2015 485,000 130,132 ...... 480,000 406,927 1,502.059
2016 515,000 105,860 ...... 500,000 386,287 1,507,147
2017 540,000 79,813 ...... 525,000 364,287 1,509,100
2018 565,000 52,232 ..... 545,000 340,662 1,502,894
2019 220,000 23,095 ...... 570,000 315,592 1,128,687
2020 235,000 11,985 ...... 600,000 288,802 !, 135,787
2021 ............ 630,000 260,002 890,002
2022 ............ 660,000 229,132 889,132
2023 ........... 690,000 196,132 886,132
2024 ............ 725,000 ! 61,287 886,287
2026 ............ 765,000 124,312 889,312
2026 ............ 805,000 85,144 890,144
2027 ........... 845,00Q 43.686 888,686
Total $10,110,000 $4,636,162 $ 820,000 $ 86,396 $ 12,979,000 $ 9,227,684 $ 37,859,242
CITY PROFILE
The City was incorporated in 1901 and operates as Home Rule Charter City with a Mayor-Council form of
government. The City Council is comprised of nine members, elected by district by the citizens of the City, each
serving a four-year term. The City Council Members are part-time elected officials who exercise the legislative
powers of the City and determine matters of policy. The Mayor, a full-time elected official, is the chief executive
officer of the City. The officers and department directors are appointed by the Mayor With City Council approval.
The City provides a full range of municipal services including fire and police protection, parks and recreation
facilities/activities, streets, planning, zoning and general administrative services. The City operates water, sewer
and stormwater utility systems. Currently, there are 342 full-time employees of the City.
Key Personnel
Cary Bozeman, Mayor: Mayor Cary Bozeman was elected to a four-year term as Mayor and began serving
January 1, 2002. From 1996 through 2001, Mayor Bozeman was the Executive Director of the Olympic College
Foundation. From 1994 to 1996 Mayor Bozeman served as President of the Institute for Public Service, a
consulting firm with a mission of reconnecting government to citizens and improving the manner in which
municipalities serve the public.
Mayor Bozeman served on the Ci.ty of Bellevue, Washington City Council from 1976 through 1993, and served
as President/CEO of the Boys & Girls Club of King County, Washington from 1985 to 1994.
Mayor Bozeman received a B.A. in education from the University of Washington and served a two-year teaching
fellowship at the University of Washington Graduate School of Education.
Dick Saunders, Interim Finance Director: Dick Saunders was appointed Interim Finance Director for the City
on August 1, 2001. His prior experience includes serving the Director of Finance and Administration for the
Washington State Public Stadium Authority for six years, and serving as the Interim Finance Director for the City
of Maple Valley and Interim City Manager for the cities of Shoreline and Bellevue. He was the City of
Bellevue's Director of Finance Information and Personnel Services for 27 years. Mr. Saunders has a Bachelor of
Business Administration from the University of Washington (Cum Laude) and an MBA from Seattle University.
I Source: The City.
2 Preiiminar3,, subject to change.
Labor Relations
The City has entered into written agreements with each of the bargaining groups set forth below. These
agreements contain provisions on such matters as vacations, sick leave, medical and dental insurance, salaries,
working conditions and grievance procedures.
Employees of the City represented by bargaining units are as follows:
Union Membership Contract Period
Teamsters Local 589 158 3 yr.
Patrolman's Association 56 2 yr.
Police Management Association 5 1 yr.
International Association of Fire Fighters Local 437 50 3 yr.
Expiration Date
12/3 1/03
12/3 1/02
12/3 1/03
12/3 !/04
In accordance with State requirements, the City conducts full negotiations with all bargaining units. The City's
management considers its relations with employees to be satisfactory.
Auditing of City Finances
The State Auditor is required to examine the affairs of cities at least once every two years. The examination must
include, among other things, the financial condition and resources of the City, whether the laws and constitution
of the State are being complied with, and the methods and accuracy of the accounts and reports of the City.
Reports of the Auditor's examinations are required to be filed in the office of the State Auditor and in the
auditing department of the City. The City's most recent audited report is for calendar year 2001.
Accounting
The accrual t~as~s of account~n, ~ u~ed for MI funds except the governmental fund types and agency funds, which
use the modified accrual basis of accounting.
The accounts of the City are organized on the basis of funds and account groups, each of which is considered a
separate accounting entity. The City uses governmental, proprietary and fudiciary funds. Each governmental
fund or agency fund is accounted for with a separate set of self-balancing accounts that comprise its assets,
liabilities, fund balances, revenues and expenditures. Proprietary funds use the revenue, expense and equity
accounts of similar businesses in the private sector.
Budgetary Data
The City has chosen to budget on a biennial basis under the authority granted by chapter 35.34 RCW. The
biennial budget includes discrete appropriations for each fiscal year within the biennium and provides that
unexpended appropriations from the first year lapse at mid-biennium. A review of the current year budget was
conducted at mid-biennium as required by State statute.
The budget as adopted constitutes the legal authority for expenditures. The City's budget is adopted at the fund
level, so expenditures may not legally exceed ap.propriations at the level of detail. Transfers or revisions within
funds are allowed, but supplemental appropriations must be approved by the City CoUncil following public
hearings. The City's budget was amended once during 2002. The financial statements present the amended
budgetary information for the current year of the biennium for governmental funds only. Ali appropriations lapse
at the end of the year.
Pension Plans
Substantially all City full-time and qualifying part-time employees participate in one of the following statcwide
local government retirement systems administered by the State Department of Retirement Systems, under cost-
sharing multiple employer public retirement systems. Policemen and firemen are covered by the Law
Enforcement Officers and Firefighters Retirement Fund ("LEOFF"). Contributions to this fund are paid on the
basis of gross salary. City employees are covered by the Public Employees Retirement System ("PERS").
Contributions to this fund are also based upon gross salary. The City is current in its required contributions to
these plans.
Both LEOFF and PERS include two plans. Participants who joined the system by September 30, 1977 are Plan I
members. Those who joined thereafter are enrolled in Plan II. Retirement benefits are financed from both
employee and employer contributions and investment earnings. Retirement benefits under both plans are vested
after completion of five years of eligible service.
Risk Management
The City's Risk Management Fund is used to finance its various exposures to loss. These exposures include
theft, damage or destruction of assets, errors and omissions, property damage and injury of others. Smaller
exposures are self-insured while commercially available insurance is purchased for many larger losses. The
City's general and utility funds finance, in part, the Risk Management Fund.
Following is
a summary of the City's insurance coverage and risk retention:
Risk Coverage Limit Per Occurence Self-Insured Retention
Comprehensive General $ 5,000,000 $ 100,000
Excess Workers' Statutory 250,000
Blanket Property 30,000,000 50,000
Boiler & Machinery 28,000,000 10,000
Marine 1,200,000 2,500
Employee Blanket Bond 1,000,000 5,000
Pollution Legal Liability 1,000,000 50,000
GENERAL AND ECONOMIC INFORMATION
The City of Bremerton, is located on Puget Sound, approximately 15 miles west of Seattle and 35 miles north of
Tacoma. The largest city in the County, Bremerton was incorporated in 1901 and has an estimated 2002
population of 37,530. Kitsap County, covering 393 square miles of land, also includes the following other
incorporated areas: Bainbridge Island (2002 population 20,920), Port Orchard (2002 population 7,900) and
Poulsbo (2002 population 7,005).
Military Presence
The economy of the City is closely tied to United States Naval installations which employ over 15,000 civillians
and 13,000 military personnel. Puget Sound Naval Shipyard ("PSNS") is the oldest permanent naval installation
on Puget Sound and has become Se second-largest industrial employer in Washington. Its primary mission now
is overhaulin~ and deactivating nuclear naval vessels. It is the only West Coast shipy~ard capable of working on
nuclear ship~. The shipyard is also the only facility capable of decommissiomng and recycling nuclear
submarines which are being disassembled in accordance with Strategic Arms Limitations Treaties.
Naval Station Bremercon is a new command that was created out of a portion of the shipyard in late 1998. It
serves as the homeport to five ships: the carrier USS Carl Vinson and four fast combat supply ships: USS
Sacramento, USS Camden, USS Rainier and USS Bridge.
The Naval Submarine Base at Bangor near the City serves as home base for Trident submarines and hosts 54
tenant commands, most of whom directly support the Trident program. Bangor has also been expanding its
military role due to Navy realignment. Base Closure and Realignment ("BRAC") actions in 1991 and 1993
caused significant growth at Bangor. Six new commands or their detachments (totaling 500 personnel) have
relocated to Bangor since 1995 and resulted in approximately $26 million in new construction. In addition to the
BRAC increases, the Navy has also constructed 520 family housing units and a rail transshipment facility totaling
an additional $49 million. Two other major construction projects were completed by 1999 bringing the total of
all construction to approximately $79 million. Years 1999 - 2001 have seen the most.significant buildup at
Bangor since the base was designated the Trident Support Site in the mid-1970s.
The Naval Undersea Warfare Center at Keyport near the City tests and maintains torpedoes, provides
maintenance support for fire control equipment and mines, and provides other engineering-related services for
undersea warfare. The station employs 1,382 civilian and 17 military personnel. Keyport is on the leading edge
of the federal government's technology reinvestment project that has earmarked $20 billion (nationally) over the
next five years to invest in defense conversion. Keyport is already working with two private industries in defense
conversion projects and is actively seeking more of this type of work. In July 2000, Congress approved $1.5
million toward making Keyport a "center of excellence" for unmanned undersea vehicles. Keyport will become
the Navy's testing and evaluation headquarters for these remotely piloted vehicles, which can be carried and
deployed by surface ships and submarines, and used for surveillance, reconnaissance and minehunting.
Additional military installations in the County include the Fleet Industrial Supply Center (formerly the Naval
Supply Center), which employs 682 civilian personnel in the City, and the Naval Hospital Bremerton, employing
1,084 civilian personnel in the City. The Naval Hospital opened a new 55,000 square-foot wing in August 2001,
which is designated as the Family Care Center. Renovation is nearing completion on the seven-story original
building, expanding and updating many clinical administrative spaces.
Other Major Employers
The Port of Bremerton (the "Port") operates the Bremerton National Airport and the 560-acre Olympic View
Industrial Park, both located approximately 10 miles southwest of the City. The park includes 32 firms which
employ a total of approximately 350 people. Over 500 acres of land at the industrial park are designated as a
foreign trade zone which offers duty savings to its tenants.
Bremerton National Airport is the largest airport in the County, with a 6,200-foot runway and full
instrumentation and lighting systems. The airport can handle all general aviation aircraft and most transport and
military planes. Charter passenger and air freight services are available to SeaTac Airport, the major
international airport in the Puget Sound area. The Bremerton Airport has recently undergone improvements.
Health care needs are met by several facilities in the Bremerton area including the Naval Hospital - Bremerton,
described earlier. Harrison Hospital in Bremerton has 1,162 employees and 297 beds. A Radiation Oncology
Center was recently completed at Harrison with 14,000 square feet of space. Renovation to the hospital's
emergency unit are underway as is construction of a new open heart surgery unit. A number of nursing homes
and retirement complexes are also located in Bremerton.
Olympic College is a two-year public community college located in Bremerton, with an enrollment of
approximately 4,310 students (full-time equivalents). The college has 290 full-time permanent employees, but
can employ up to 600 employees, including part-time student workers. The college offers associate of arts
degrees in four fields, as well as adult education and non-credit courses, and began a four-year degree program
(called "2-Plus-2") in 1994. The 2-Plus-2 degree program is associated with the University of Washington,
Tacoma branch. A new library is being constructed at the college.
See the table on page 18 of this Official Statement for a list of employers in Kitsap County with 200 or more
employees.
According to the Multiple Listing Service Data, 564 homes were sold in the City in 2001, with an average price
of $117,391, up 1% from the previous year. The average new home price in the City was $173,459, up 12% over
the previous year. The average rent in the City was $599 per month, with a 5.5% vacancy rate. The downtown
office vacancy rate, excluding buildings converted to office use for the U.S. Navy, was 9.28% in 2001.
New Developments
Among the projects recently completed or proposed for development in Bremerton are the following:
· Demolition at a site in downtown Bremerton is taking place for a $40 million conference center/hotel project,
adjacent to the ferry dock and transportation center. The project includes a 15,000 square-foot conference
center, a 110-room hotel, a restaurant, an underground parking garage for 600 cars, a park with waterfront
access and a 58-unit apartment complex. The project is being built with both private and public funding, and
is expected to be complete during the summer of 2004. A Public Facilities District was formed by the City
and Kitsap County, to enable the collection of a portion of state sales to pay debt service on bonds issued to
construct the center.
· A government center is planned for development in downtown Bremerton, which will include approximately
104,000 square feet of office space. The building is expected to house offices for the City as well as the
Bremerton Health District, the Bremerton Housing Authority, the downtown branch of the Kitsap Regional
Library, Kitsap County and possibly other local governmental units as well. Final design and financing for
the project is expected in the first half of 2003.
· Olympic View Business Park is being developed by the Port for business and technology-oriented businesses.
It lies adjacent to a broad bandwith fiber optics line and the Bremerton National Akport. Construction of the
30-acre planned business park, began in the summer of 2000.
· Port Blakely Communities plans to break ground in the spring of 2004 on a mixed2use project in Central
Kitsap County just west of Kitsap Lake, an area recently annexed to the City. A Subarea Plan prepared by
the City and the County that identifies the zoning for the property and specifies environmental protections
that must be included for the project to be built, was approved in September 2000. Plans include
approximately 900 homes and 2,225,000 square feet of business uses such as offices, light assembly and
manufacturing facilities and business park, as well as a maximum of 100,000 square feet of retail and
commercial services. Construction of the first phase of the project is expected to begin in Spring of 2004.
· The Bremerton Gateway Project is a $40 million multi-year traffic modification under construction for the
City's main entry corridor.. Included in the project are beautification, traffic improvement, street widening
and related projects designed to improve the first impression upon entering the City.
· The Northwest Corporate Campus is a business park and residential community planned for development on
244 privately owned acres near the City, that are zoned for industrial and residential use. The project plans
include a building for light industrial use on 188 acres as well as approximately 200 middle-income
residential units on 56 acres. A 139,000 square-foot Class A office building is expected to be completed at
the park in early 2003.
Following are economic indicators of the City and the County.
KITSAP COUNTY POPULATION1
CiW of Other Kitsap Coun~ Ki~ap County
Year Brsme~on Incorporated Unincorpora~d Total
2002 37.530 35.825 161,345 234.700
2001 37.260 35.515 160.625 233,400
2000 37.259 34.814 159396 231,969
1999 36.888 33.540 159.890 229,700
1998 37,260 32.615 159,125 229.000
1990 38,142 12,913 138,676 189,731
TAXABLE RETAIL SALES2
Year Kitsap Coun~ Ci~ of Breme~on
20023 $ 1,206,257.000 $ 301,164,000
2001 2,492,858,356 575,709,792
2000 2,394,888,674 560,190,968
1999 2,309,819,810 562,364,764
i998 2,064,021,512 506,875,439
1997 1,958,346,681 498,779,418
SEATTLE-BREMERTON FERRY TRAFFIC STATISTICS4
Number of Number of
Year Vehicles Passengers
2001 747,342 2,424,226
2000 780,400 2,484,610
1999 731,969 2,488,466
1998 714,903 2,211,641
1997 756,796 2,047,014
KITSAP COUNTY AND WASHINGTON STATE
LABOR FORCE AND AVERAGE ANNUAL UNEMPLOYMENTs
Resident Civilian Average Annual To~l
Year Labor Force Unemployment Employment Ki~ap Coun~ (%) Washington{%)
2001 91,600 5,300 86,300 5.8 6.0
2000 94,000 5,300 88,800 5.6 4.9
1999 93,300 4,700 88,600 5.0 4.7
1998 91,300 4,800 86,500 5.3 .: 4.8
1997 93,000 5,100 87,900 5.5 4.8
KITSAP COUNTY AND WASHINGTON STATE MEDIAN HOUSEHOLD INCOME ESTIMATESs
Year Kistap County Washington S~
2002 $ 46,592 $ 49.898
2001 45,574 48.835
2000 48,445 48,023
1999 46,840 45,776
1998 45,713 44,519
1997 44,032 42,534
RESIDENT ARMED FORCES PERSONNEL7
Year Personnel Percent Change
2001 13,615 0.2
2000 13,589 (2.8)
1999 13,980 15.4
1998 12,114 (11.7)
1997 13,714 (17.2)
1996 16,547 5.3
I Source: Washington State Office of Financial Management and U.S. Census,
2 Source: Washington State Department of Revenue.
3 First two quarters only.
4 Source: Washington State Department of Transportation, Marine Division.
5 Source: Washington State Employment Security.
6 Source: Washington State Office of Financial Management; figures for 2002 are tbrecast. All figures are presented in current dollars.
7 Source: Kitsap County TRENDS, Fall 2001 and Naval Station Public ,a_flairs Office
MAJOR EMPLOYERS IN KITSAP COUNTY1
(As of October 2001)
Major Government Employers (Civilian/Military) No. of Employees
Puget Sound Naval Shipyard 9,300
Naval Submarine Base Bangor 7,769
Naval Undersea Warfare Center !,888
Naval Station Bremerton I, 168
Naval Hospital Bremerton i,084
Fleet Industrial Supply Center 682
Major Defense Contractors
Johnson Controls World Services (estimate) 800
BAE Systems 350
Major Local & State Public Agency Employers
Central Kitsap School District l, 140
Kitsap County I, 139
South Kitsap School District !,022
North Kitsap School District 700
Bremerton School District 625
Washington State Ferries 410
Olympic College 375
Washington State DSHS 357
City of Bremerton 320
United State Postal Service 291
Major Private Sector Employers
Harrison Hospital 1,275
WalMart (2 locations) 555
Fred Meyer 451
Nextel Communications 333
Laurier Enterprises (McDonald's) 321
Albertsons (5 locations) 313
Town & County Markets 311
Safeway 290
INITIATIVE AND REFERENDUM
Under the State Constitution, the voters of the State have the ability to initiate legislation and modify existing
legislation through the powers of initiative and referendum, respectively. The initiative power in Washington
may not be used to amend the State Constitution. Initiatives and referenda are submitted to the voters upon
receipt of a petition signed by at least 8% (initiative) and 4% (referenda) of the number of voters registered and
voting for the office of Governor at the preceding regular gubernatorial election..Any law approved in this
manner by a majority of the voters may not be amended or repealed by the Legislature within a period of two
years following enactment, except by a vote of two-thirds of all the members elected' to each house of the
Legislature. After two years, the law is subject to amendment or repeal by the Legislature in the same manner as
other laws.
ORIGINAL ISSUE DISCOUNT
[The Bonds maturing in years __ through __ have been sold at a price reflecting original issue discount
("Discount Bonds"). Under existing law, the original issue discount in the selling price of each Discount Bond,
to the extent properly allocable to each owner of such Discount Bond, is excluded from gross income for federal
income tax purposes with respect to such owner. The original issue discount is the excess of the stated
redemption price at maturity of such Discount Bond over the initial offering price to the public, excluding
underwriters and other intermediaries, at which price a substantial amount of the Discount Bonds of such
maturity were sold.
Under Section 1288 of the Code, original issue discount on tax-exempt bonds accrues on a compound basis. The
amount of original issue discount that accrues to an owner of a Discount Bond during any accrual period
generally equals (i) the issue price of such Discount Bond plus the amount of original issue discount accrued in
all prior accrual periods, multiplied by (ii) the yield to maturity of such Discount Bond (determined on the basis
of compounding at the close of each accrual period and properly adjusted for the length of the accrual period),
less (iii) any interest payable on such Discount Bond during such accrual period. The amount of original issue
discount so accrued in a particular accrual period will be considered to be received ratably on each day of the
accrual period, will be excluded from gross income federal income tax purposes, and will increase the owner's
tax basis in such Discount Bond. Any gain realized by an owner from a sale, exchange, payment or redemption
of a Discount Bond will be treated as gain from the sale or exchange of such Discount Bond.
1 Source: Kitsap Count3' TRENDS, Fall 2001.
15
The portion of original issue discount that accrues in each year to an owner of a Discount Bond may result in
certain collateral federal income tax consequences. The accrual of such portion of the original issue discount
will be included in the calculation of alternative minimum tax liability as described above, and may result in an
alternative minimum tax liability even though the owner of such Discount Bond will not receive a corresponding
cash payment until a later year.
Owners who purchase Discount Bonds in the initial public offering but at a price different from the first offering
price at which a substantial amount of those Discount Bonds were sold to the public, or who do not purchase
Discount Bonds in the initial public offering, should consult their own tax advisors with respect to the tax
consequences of the ownership of such Discount Bonds. Owners of Discount Bonds who sell or otherwise
dispose of such Discount Bonds prior to maturity should consult their own tax advisors with respect to the
amount of original issue discount accrued over the period such Discount Bonds have been held and the amount of
taxable gain or loss to be recognized upon that sale or other disposition of Discount Bonds. Owners of Discount
Bonds also should consult their own tax advisors with respect to state and local tax consequences of owning such
Discount Bonds.]
ORIGINAL ISSUE PREMIUM
[The Bonds maturing in years have been sold at prices reflecting original issue premium
("Premium Bonds"). An amount equal to the excess of the purchase price of a Premium Bond over its stated
redemption price at maturity constitutes premium on such Premium Bond. A purchaser of a Premium Bond must
amortize any premium over such Premium Bond's term using constant yield principles, based on the purchaser's
yield to maturity. The amount of amortizable premium allocable to an interest accrual period for a Premium
Bond will offset a like amount of qualified stated interest on such Premium Bond allocable to that accrual period,
and may affect the calculation of alternative minimum tax liability described above. As premium is amortized,
the purchaser's basis in such Premium Bond is reduced by a corresponding amount, resulting in an increase in the
gain (or decrease in the loss) to be recognized for federal income tax purposes upon a sale or disposition of such
Premium Bond prior to its maturity. Even though the purchaser's basis is reduced, no federal income tax
deduction is allowed. Purchasers of Premium Bonds, whether at the time of initial issuance or subsequent
thereto, should consult with their own tax advisors with respect to the determination and treatment of premium
for federal income tax purposes and with respect to state and local tax consequences of owning such Premium
Bonds.]
PRESERVATION OF TAX EXEMPTION
The City has covenanted, in the Ordinance, it will not take or permit to be taken on its behalf any action that
would adversely affect the exclusion of the interest on the Bonds from gross income for purposes of federal
income taxation, and will take or require to be taken such acts as may be permitted by' State law and as may from
time to time be required under applicable law to continue the exclusion of the interest on the Bonds from gross
income for purposes of federal income taxation. Without limiting the generality of the foregoing, the City will
not invest or make or permit any use of the proceeds of the Bonds or of its other money at any time during the
term of the Bonds which would cause the Bonds to be "arbitrage bonds" within the meaning of Section 148 of the
Code. The City certifies that it has not been notified of any listing or proposed listing by the Internal Revenue
Service to the effect that it is a bond issuer whose arbitrage certifications may not be relied upon.
CONFLICTS OF INTEREST
Some or all of the fees of the Underwriter and Bond Counsel are contingent upon the issuance and sale of the
Bonds. Furthermore, Bond Counsel from time to time serves as counsel to the Underwriter with respect to
issuers other than the City and transactions other than the issuance of the Bonds. None of the City Council
members or other officers of the City has interests in the issuance of the Bonds that are prohibited by applicable
law.
TAX EXEMPTION
In the opinion of Gottlieb, Fisher & Andrews, PLLC, Bond Counsel, as of the date of issue of the Bonds (the
"Date of Issue"), and provided the City complies with applicable requirements of the Code which must be
satisfied subsequent to the issuance thereof, the Bonds have not been designated by the City as "qualified tax-
exempt obligations" for purposes of the partial interest expense deduction under Section 265 of the Code;
interest on the Bonds is excluded from gross income for federal income tax purposes under existing federal law;
and such interest is not an item of tax preference for purposes of determining the alternative minimum tax on
individuals and corporations under existing federal law. However, under existing federal law interest on the
Bonds received by certain corporations is to be taken into account in the computation of adjusted current earnings
for purposes of calculating the alternative minimum tax applicable to such corporations; such interest received by
certain S corporations may be subject to tax; and such interest received by foreign corporations with United
16
States branches may be subject to a foreign branch profits tax. Bond Counsel expresses no opinion regarding any
other federal tax consequences of receipt of interest on the Bonds. Potential purchasers of the Bonds should
consult with their tax advisors as to all possible tax consequences of ownership of the Bonds. See also, "OTHER
TAX CONSEQUENCES," herein.
The Code contains certain requirements which must be satisfied subsequent to the issuance of the Bonds in order
to maintain the tax treatment described above, including requirements relating to the application of the proceeds
of the Bonds, use of facilities which are financed with such proceeds, limitations on income derived from the
investment of gross proceeds of the Bonds, and rebate to the United States Treasury of certain of such investment
income on such gross proceeds. The City has covenanted to comply with these requirements; and the opinion of
Bond Counsel described in the preceding paragraph assumes such compliance. However, Bond Counsel has not
undertaken and shall not undertake to monitor compliance by the City with such requirements and failure of the
City to comply with such requirements could cause the interest on the Bonds to be included in gross income for
federal income tax purposes, and could be treated as an item of tax preference for purposes of the alternative
minimum tax on individuals and corporations, and could result in a loss of the partial interest expense deduction
available for qualified tax-exempt obligations, in each case, retroactive to the Date of Issue.
OTHER TAX CONSEQUENCES
Under current federal law:
1. Corporate Alternative Minimum Tax. The interest on tax-exempt obligations received by a
comoration is taken into account in the computation of the alternative minimum tax applicable to
co~orations (as defined for federal income tax purposes). Under current federal law, the alternative
minimum taxable income of such a corporation (other than an S corporation, a regulated investment
company, a real estate investment trust or a REMIC) is increased by 75% of the amount by which the
"adjusted current earnings" of the corporation exceeds the corporation's alternative minimum taxable
income determined without regard to such increase and any alternative tax net operating loss deduction.
Interest on tax-exempt obligations, whenever issued or acquired, including interest on the Bonds, is
included in the computation of"adjusted net book income" and "adjusted current earnings."
2. Tax on Excess Passive Investment Income of S Corporations. Certain excess net passive investment
income, including interest on the Bonds, received by an S corporation (a corporation treated as a
partnership for most federal tax purposes) that has "subchapter C earnings and profits" at the close of its
taxable year may be subject to federal income tax at the highest rate app!icable, to .corporations if more
than 25% of the gross receipts of such S corporation for such taxable year ~s passive ~nvestment income.
3. Foreign Corporation Branch Profits Tax. Interest on the Bonds received by certain foreign
corporations doing business in the United States may be subject to a branch pr0fits tax applicable to such
corporations that is based on their Untied States source earnings and profits, including tax-exempt
interest on obligations such as the Bonds.
4. Elimination of Interest Deduction for Financial Institutions. The Bonds are not "qualified tax-
exempt obligations" for purposes of the 80 percent financial institution interest expense deduction
permitted pursuant to the Code. None of the interest expense incurred by banks and other financial
institutions allocable to the purchase or carrying of the Bonds may be deducted by such institutions.
5. Reduction of Loss Deduction for Property and Casualty Insurance Companies. Interest on tax-
exempt obligations, including the Bonds, received by property and casualty insurance companies, will
reduce tax deductions for loss reserves otherwise available to such companies by an amount equal to 15
percent of such tax-exempt interest received during the taxable year.
6. Social Security and Tier 1 Railroad Retirement Benefits Subject to Tax. Interest received or accrued
during the year from tax-exempt obligations, such as the Bonds, is included in the calculation of
"modified adjusted gross income" of recipients of the social security or tier 1 railroad retirement benefits.
If the sum of the "modified adjusted gross income" for the taxable year plus one-half of the social
security or tier 1 railroad retirement benefits received during the taxable year exceeds a base amount
provided by the Code (the "excess amount"), then the lesser of (i) one-half ~f the social security or tier 1
railroad retirement benefits received during the taxable year or (ii) one-half of the "excess amount", is
included in the gross income of the social security or tier 1 railroad retirement benefit recipient.
ABSENCE OF MATERIAL LITIGATION
There is no litigation of any kind now pending or, to the ~knowledge of the City, threatened to restrain or enjoin
the issuance or delivery of the Bonds or in any manner questioning the proceedings and authority under which
the Bonds are issued or affecting the ability of the City to pay the principal of or the interest on the Bonds.
APPROVAL OF BOND COUNSEL
Legal matters incident to the authorization, issuance and sale of Bonds by the City are subject to the approving
legal opinion of Gottlieb, Fisher & Andrews, PLLC, Bond Counsel. A copy of the opinion of Bond Counsel will
be delivered with the Bonds.
CONTINUING DISCLOSURE
The City has undertaken, for the benefit of the Owners and Beneficial Owners of the Bonds required by
subsection (b)(5)(i) of the Rule 15c2-12 (the "Rule") of the United States Securities and Exchange Commission
(the "SEC"), to provide or cause to be provided to each then existing nationally recognized municipal securities
information repository designated by the SEC ("NRMSIR") and to the State Information Depository ("SID"), if
one is created, the following annual financial information and operating data (collectively, the "Annual Financial
Information") for each prior fiscal year, commencing with the fiscal year ending December 31, 2002, on or before
the last day of the ninth month following the end of such prior fiscal year:
(a) annual financial statements prepared in accordance with the generally accepted accounting
principles applicable to governmental units, as such principles may be changed from time to time
and as permitted by State law; which statements will not be audited, except that if and when
audited financial statements are otherwise prepared and available to the City, they will be
provided (the "Annual Financial Statements");
(b) authorized, issued and outstanding balance of general obligation bonds;
(c) assessed valuation for the fiscal year;
(d) regular property tax levy rate and regular property tax levy rate limit for the fiscal year; and
(e) narrative explanation for the reasons for any amendments to the undertaking made during the
previous fiscal year and the impact of such amendments on the Annual Financial Information
being provided.
In its provision of Annual Financial Information and operating data, the City may cross-reference to any "final
official statement" (as defined in the Rule) available from the Municipal Securities Rulemaking Board (the
"MSRB") or any other documents theretofore provided to each then existing NRMSIR or the SID, if one is
created.
The City further agrees to provide or cause to be provided, in a timely manner, to the SID, if one is created, and
to either the MSRB or each then existing NRMSIR, notice of any of the following events with respect to the
Bonds, if material:
1. Principal and interest payment delinquencies;"'
2. Non-payment related defaults;
3. Unscheduled draws on debt service reserves reflecting financial difficulties;
4. Unscheduled draws on credit enhancements reflecting financial difficulties;
5. Substitution of credit or liquidity Providers, or their failure to perform;
6. Adverse tax opinions or events affecting the tax-exempt status of the Bonds;
7. Modifications to rights of the Owners of the Bonds;
8. Optional redemptions of the Bonds;
9. Defeasances of the Bonds;
10. Release, substitution or sale of property securing repayment of the Bonds; and
11. Rating changes.
The City also agrees to provide or cause to be provided, in a timely manner, to the SID, if one is created, and to
either the MSRB or each then existing NRMSIR, notice of its failure to provide the Annual Financial Information
for the prior fiscal year on or before the last day of the seventh month following the end of such prior fiscal year.
After the issuance of the Bonds, so long as the interests of the Owners or Beneficial Owners of the Bonds will
not be materially impaired thereby, as determined by a party unaffiliated with the City (including, without
limitation, a trustee for the Owners, nationally recognized bond counsel or other counsel familiar with the federal
securities law), or pursuant to a favorable "no-action letter" issued by the SEC, this continuing disclosure
undertaking may only be amended in connection with any change in legal requirements, change in law, or change
in the identity, nature or status of the obligated person, or type of business conducted, and only in such a manner
that the continuing disclosure undertaking of the City, as so amended, would have complied with the
requirements of the Rule at the time of the primary offering, after taking into account any amendments or
interpretations of the Rule, as well as any change in circumstances.
The City's obligations to provide Annual Financial Information and notices of certain events shall terminate
without amendment upon the defeasance, prior redemption or payment in full of all of the then outstanding
Bonds. This continuing disclosure undertaking or any provision hereof, shall be null and void if the City (i)
obtains an opinion of nationally recognized bond counsel or other counsel familiar with the federal securities
laws to the effect that those portions of the Rule which require this continuing disclosure undertaking or any
such provision are invalid, have been repealed retroactively or otherwise do not apply to the Bonds; and (ii)
notifies and provides the SID, if any, and either the MSRB or each then existing NRMSIR with copies of such
opinion.
The right of each Owner or Beneficial Owner of Bonds to enforce the provisions of this continuing disclosure
undertaking shall be limited to the right to obtain specific enforcement of the City's obligations in this continuing
disclosure undertaking and any failure by the City to comply with the provisions of this continuing disclosure
undertaking shall not be a default with respect to the Bonds under the Ordinance.
Compliance. In conjunction with the issuance of the City's Limited Tax General Obligation Bonds, 2001, the
City agreed to provide certain annual financial information within nine months of its fiscal year, commencing in
2002 for the fiscal year ended December 31, 2001. The City failed to file this annual financial statement by this
deadline. The City filed the required annual financial information on October __, 2002, and the City also filed a
notice regarding its failure to file by this deadline. Other than this late filing, the City has complied with all of its
prior undertakings.
RATING
The City has applied for a rating on the Bonds from Moody's Investors Service Inc., as indicated on the cover of
this Official Statement. The rating reflects only the view of the rating agency and an interpretation of such rating
may be obtained only from the rating agency furnishing the same. There is no assurance that such rating will
continue for any given period of time or that it will not be revised downward or withdrawn entirely by the rating
agency, if, in the judgment of such agency, circumstances so warrant. Any such revision or withdrawal of either
such rating may have an adverse effect on the market price of the Bonds.
UNDERWRITING
The Underwriter has agreed, subject to certain conditions, to purchase all of the Bonds, if any are purchased, at a
price of % of the par value of the Bonds, plus accrued interest from the dated date to the settlement date.
The Bonds will be reoffered at an average price of % of the par value of the Bonds, resulting in a
underwriting spread of $ per $1,000 of principal amount of the Bonds. After the initial public offering, the
public offering prices may be varied from time to time. ~..
CONCLUDING STATEMENT
All estimates, assumptions, statistical information and other statements contained herein, while taken from
sources considered reliable, are not guaranteed by the City or the Underwriter. So far as any statement herein
includes matters of opinion, or estimates of future expenses and income, whether or not expressly so stated, they
are intended merely as such and not as representations of fact.
The information contained herein should not be construed as representing all conditions affecting the City or the
Bonds. Additional information may be obtained directly from the City or the Underwriter.
The foregoing statements relating to the Ordinance and other documents are in all respects subject to and
qualified in their entirety by provisions of such documents.
This Official Statement, starting with the cover page and ali subsequent pages, including the appeadices,
comprise the entire Official Statement, which has been approved by the City. The City has represented to the
Underwriter that the portions of this Official Statement, as of its date, directly pertaini.ng to the City neither
contain any misrepresentation of material fact nor omit any material fact necessary in order to make the
statements made herein, in light of the circumstances under which they were made, not misleading in any
material respect.
City of Bremerton, Washington
By: /si
u
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APPENDIX A
FORM OF LEGAL OPINION
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(Form of approving opinion of Gottlieb, Fisher &
Andrews, PLLC, bond counsel)
(Date of Issue)
Mayor and City Council
City of Bremerton
Bremerton, Washington 98310
Ladies and Gentlemen:
We have acted as bond counsel in connection with the issuance by the City of Bremerton,
Washington (the "City"), of the bonds described below (the "Bonds"):
$12,979,000
CITY OF BREMERTON, WASHINGTON
UNLIMITED TAX GENERAL OBLIGATION BONDS, 2002
Dated: December 1,2002
The Bonds are issued pursuant to Ordinance No. of the City (the "Bond
Ordinance") and other proceedings duly had and taken in conformity therewith. The Bonds are
issued to provide part of the funds necessary to acquire additional police vehicles, fire tracks,
apparatus and equipment; acquire land, and construct, remodel and equip new fire, police and
court facilities and to pay incidental costs and costs related to the sale and issuance of such
bonds, all as provided in the Bond Ordinance.
The Bonds are issued as fully registered bonds in the denomination of $5,000 each or any
integral multiple thereof within a single maturity, except for one bond maturing in 2003, which
shall be issued in the denomination of $4,000. The Bonds bear interest (computed on the basis of
a 360-day year of twelve 30-day months) from their date or from the most recent interest
payment date to which interest has been paid or duly provided for, whichever is later, payable
June 1, 2003, and semiannually thereafter on each December 1 and June 1 to the maturity or
earlier redemption thereof, at the rates set forth below, and shall mature on December 1 in each
of the years and in the principal amounts set forth below:
Maturity Dates
(December 1)
Principal Amounts
Interest Rates
2003 %
2004
2005
2006
2007
2008
2009
2010
2011
2012
2013
2014
2015
2016
2017
2018
2020
2021
2022
2023
2024
2025
2026
2027
The Bonds are subject to redemption prior to maturity at the times and in the manner
described in the Bond Ordinance.
In rendering this opinion letter, we have examined the following: (i) the Bond Ordinance;
(ii) a copy of one executed and authenticated Bond (we assume that all other Bonds are in the
same form and have been similarly executed and authenticated); and (iii) the certified
proceedings of the City and other certificates of public officials and representatives of the City
which have been furnished to us and which comprise the transcript of proceedings pertaining to
the issuance of the Bonds (the "Transcript").
As to questions of fact material to the opinions expressed herein, we have relied upon the
certified proceedings of the City and other certificates of public officials and representatives of
the City which have been furnished to us as part of the Transcript, all without undertaking to
verify the same by independent investigation.
Based only upon the foregoing and our examination of such questions of law as we have
deemed necessary or appropriate for the purpose of this opinion letter, and subject to the
limitations and qualifications expressed below, we are of the opinion that, as of this date:
1. The Bonds are lawfully authorized and issued pursuant to and in full compliance
with the Constitution and statutes of the State of Washington and the Bond Ordinance.
2. The Bonds are legal, valid and binding general obligations of the City, enforceable
against the City in accordance with their terms, subject to bankruptcy, insolvency, reorganization,
moratorium and other similar laws affecting creditors' rights, and also to the exercise of judicial
discretion in accordance with general principles of equity.
3. The City has irrevocably covenanted in the Bond Ordinance that, unless the
principal of and interest on the Bonds are paid from other sources, so long as the Bonds are
outstanding, the City shall include in its budgets and make annual levies of taxes without
limitation as to rate or amount upon all of the property in the District subject to taxation in
amounts sufficient, together with any other money legally available therefor, to pay the principal
of and interest on the Bonds as the same shall become due. The City has irrevocably pledged its
full faith, credit and resources to the annual levy and collection of such taxes and for the prompt
payment of such principal and interest.
4. Assuming compliance by the City with applicable requirements of the Code that
must be met subsequent to the issuance of the Bonds, the interest on the Bonds is excluded from
gross income for federal income tax purposes under existing federal law, and such interest is not
an item of tax preference for purposes of determining alternative minimum tax on individuals
and corporations under existing federal law. However, under existing federal law, interest on the
Bonds received by certain corporations is to be taken into account in the computation of adjusted
current earnings for purposes of calculating the alternative minimum tax applicable to such
corporations; such interest received by foreign corporations with United States branches may be
subject to a foreign branch profits tax; and such interest received by certain S corporations may
be subject to tax.
[5. The difference between the amount of the Bonds maturing in'khe years ~ through
, inclusive (the "Discount Bonds"), and the initial offering price to the public (excluding
bond houses, brokers and similar persons or organizations acting in the capacity of underwriters or
wholesalers) at which price a substantial amount of such Discount Bonds of the same maturity was
sold constitutes original issue discount, which is excluded from gross income for federal income tax
purposes to the same extent as interest on the Discount Bonds. Further, this original issue discount
accrues over the term of each Discount Bond on the basis of a constant yield to maturity and the
basis of each Discount Bond acquired at such initial offering price by an initial purchaser of such
Discount Bonds will be increased by the amount of such accrued original issue discount.]
Except as stated in the preceding paragraph[s] 4 [and 5], we express no opinion as to any
federal or state tax consequences of the ownership or disposition of the Bonds.
The Code contains certain requirements which must be satisfied subsequent to the date of
issue of the Bonds in order to maintain the tax treatment described above in paragraph[s] 4 [and
5], including requirements relating to application of the proceeds of the Bonds, use of facilities
financed with such proceeds, limitations on income derived from the investment of gross
proceeds of the Bonds (as defined in Section 148 of the Code), and rebate to the United States
Treasury of certain investment earnings on such gross proceeds. The City has covenanted to
comply with these requirements, and the opinions expressed in paragraph[s] 4 [and 5] assume
such compliance. However, we have not undertaken and do not undertake to monitor
compliance by the City with such requirements; and failure by the City to comply with such
requirements could cause interest on the Bonds and any properly allocable original discount to be
included in gross income for federal income tax purposes, and to be treated as an item of tax
preference for purposes of the alternative minimum tax on individuals and corporations, in each
case, retroactive to the date of issue of the Bonds.
We have not been engaged to participate in the preparation or review of, or express any
opinion concerning the completeness or accuracy of, the official statement or other disclosure
documentation prepared or used by any person in connection with the offer or sale of the Bonds,
and thus express no opinion concerning the completeness or accuracy thereof.
Copies of this opinion letter may be delivered to the Owners of the Bonds, who may rely
on this opinion letter as if it were addressed to them on the date hereof. Subject to the foregoing,
this opinion letter may be relied upon by you only in connection with the issuance of the Bonds
and may not be used or relied upon by you or any other person for any other purpose whatsoever,
without in each instance our prior written consent. We expressly disclaim any responsibility to
advise you or any Owner of any developments in areas covered by this opinion letter that occur
after the date hereof.
Respectfully submitted,
GOTTLIEB, FISHER & ANDREWS
f:\brcmerton\utgo02\
By
Judith L. Andrews
APPENDIX B
DTC AND BOOK-ENTRY SYSTEM
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DTC AND BOOK ENTRY SYSTEM
The.following information has been pro~,ided by DTC. The Ci.ty makes no representation regarding the accuracy
or completeness thereof. Beneficial Owners should therefore confirm the following with DTC or the Participants
(as here inafier defined).
DTC will act as securities depository for the Bonds. The Bonds will be issued as fully registered securities in the
name of Cede & Co. (DTC's partnership nominee). One fully registered Bond certificate will be issued for each
maturity of the Bonds, each in the aggregate principal amount of such maturity, and will be deposited with DTC.
DTC, the world's largest depository, is a limited-purpose trust company organized under New York Banking
Law, a "banking organization" within the meaning of New York Banking Law, a member of the Federal Reserve
System, a "clearing corporation" within the meaning of the New York Uniform Commercial Code, and a
"clearing agency" registered pursuant to the provisions of Section 17A of the Securities Exchange Act of 1934.
DTC holds and provides asset servicing for over two million issues of U.S. and non-U.S, equity issues, corporate
and municipal debt issues, and money market instruments from over 85 cotlntries that DTC's participants
("Direct Participants") deposit with DTC. DTC also facilitates the post-trade settlement among Direct
Participants of sales and other securities transactions in deposited securities, through electronic computerized
book-entry transfers and pledges between Direct Participants' accounts. This eliminates the need for physical
movement of securities certificates. Direct Participants include both U.S. and non-U.S, securities brokers and
dealers, banks, trust companies, clearing corporations, and certain other organizations. DTC is a wholly-owned
subsidiary of The Depository Trust & Clearing Corporation ("DTCC"). DTCC, in turn, is owned by a number of
Direct Participants ott DTC and Members of the National Securities Clearing Corporation, Government Securities
Clearing Corporation, MBS Clearing Corporation, and Emerging Markets Clearing Corporation, (NSCC, GSCC,
MBSCC, and EMCC, also subsidiaries of DTCC), as well as by the New York Stock Exchange, Inc., the
American Stock Exchange, Inc., and the National Association of Securities Dealers, Inc. Access to the DTC
system is also available to others such as both U.S. and non-U.S, securities brokers and dealers, banks and trust
companies, and clearing corporations that clear through or maintain a custodial relationship with a Direct
Participant, either directly or indirectly ("Indirect Participants"). DTC has Standard & Poor's highest rating:
AAA. The DTC Rules applicable to its Participants are on file with the Securities and Exchange Commission.
More information about DTC can be found at www.dtcc.com.
Purchases of Bonds under the DTC system must be made by or through Direct Participants, which will receive a
credit for the Bonds on DTC's records. The ownership interest of each actual purchaser of each Bond
("Beneficial Owner") is in turn to be recorded on the Direct and Indirect Participants' records. Beneficial
Owners will not receive written confirmation from DTC of their purchase. Beneficial Owners are, however,
expected to receive written confirmations providing details of the transaction, as well as periodic statements of
their holding from the Direct or Indirect Participant through which the Beneficial Owner entered into the
transaction. Transfers of ownership interest in the Bonds are to be accomplished by entries made on the books of
Direct and Indirect Participants acting on behalf of Beneficial Owners. Beneficial Owners will not receive
certificates representing their ownership interest in Bonds, except in the event that use of the book-entry system
for the Bonds is discontinued.
To facilitate subsequent transfers, all Bonds deposited by Direct Participants with DTC are registered in the name
of DTC's partnership nominee, Cede & Co or such other name as may be requested by an authorized
representative of DTC. The deposit of Bonds with DTC and their registration in the name of Cede & Co. or such
other DTC nominee do not effect any change in beneficial ownership. DTC has no knowledge of the actual
Beneficial Owners of the Bonds; DTC's records reflect only the identity of the Direct Participants to whose
accounts such Bonds are credited, which may or may not be the Beneficial Owners. The Direct and Indirect
Participants will remain responsible for keeping account of their holdings on behalf of their customers.
Redemption notices shall be sent to DTC. If less than all of the Bonds are being redeemed, DTC's practice is to
determine by lot the amount of the interest of each Direct Participant in such issue to be redeemed.
Neither DTC nor Cede & Co. (nor any other DTC nominee) will consent or vote with respect to the Bonds unless
authorized by a Direct Participant in accordance with DTC's Procedures. Under its usual procedures, DTC mails
an Omnibus Proxy to the City as soon as possible after the record date. The Omnibus Proxy assigns Cede &
Co.'s consenting or voting rights to those Direct Participants to whose accounts the Bonds are credited on the
record date (identified in a listing attached to the Omnibus Proxy).
Redemption proceeds, distributions, and dividend payments on the Bonds will be made to Cede & Co. or such
other nominee as may be requested by an authorized representative of DTC. DTC's practice is to credit Direct
Participants' accounts upon DTC's receipt of funds and corresponding detail information from Issuer or Agent on
payable date in accordance with their respective holdings shown on DTC's records. Payments by Participants to
Beneficial Owners will be governed by standing instructions and customary practices, as is the case with Bonds
held for the accounts of customers in bearer form or registered in "street name," and will be the responsibility' of
such Participant and not of DTC (nor its nominee), the Bond Registrar, or the City, subject to any statutory or
regulatory requirements as may be in effect from time to time. Payment of redemption proceeds, distributions,
and dividend payments to Cede & Co. (or any other nominee as may be requested by an authorized representative
of DTC) is the responsibility of the City and the Bond Registrar, disbursement of such payments to Direct
Participants shall be the responsibility of the City or the Registrar, disbursement of such payments to Direct
participants will be the responsibility of Direct and Indirect Participants.
DTC may discontinue providing its services as bond depository with respect to the Bonds at any time by giving
reasonable notice to the City and the Bond Registrar. Under such circumstances, in the event that a successor
bond depository is not obtained, Bond certificates are required to be printed and delivered. The City may decide
to discontinue use of the system of book-entry transfers through DTC (or a successor'Bond depository). In that
event, Bond certificates will be printed and delivered.
The .C!ty may decide to discontinUe use of the system of book-entry transfers through DTC (or a successor
securities depository). In that event, Bond certificates will be printed and delivered.
The information in this section concerning DTC and DTC's book-entry system has been obtained from sources
that the City and the Underwriter believe to be reliable, but neither the City nor the Underwriter takes
responsibility for the accuracy thereof.
AGENDA BILL
BREMERTON CITY COUNCIL
1. SUBJECT: ' ~ .~ ~ ~ ~
Resolution Authorizing the Use of
Glass Culler
FOR AGENDA OF: November 13, 2002
ORIGINATING DEPT: Public Works & Util
ORIGINATOR: Mike Mecham
DATE SUBMITTED: February 12, 2002
2. CLEA RAN CES (comment on b~/:~ if~O-): 3. EXHIBITS:
Director PW&U ,~~~ ~.59.///~ .-. A. ~L~ ~7 ~
City Attorney ~ Resolution No.
Operations Commi,ee ~~ ~c~~
Flsc~ & Budget Comml,~~- ~~
4. SUMMARY STATEMENT AND REQUIREMENT FOR COUNCIL ACTION:
RCW 42.19A.020 encourages local jurisdictions to set goals and standards for buying products made from recycled materials.
Currently, there is more glass being reoTcled than can be remanufactured back into glass containers resulting in an
oversupply in the Puget Sound region. To address this problem ne~v uses for recycled glass cullet as construction aggregate
have been de~eloped and the Washington State Department of Transportation (WSDOT) has approved specifications for glass
cutlet to be used for a variet3- of construction aggregate applications. The attached resolution authorizes the Public Works and
Utilities Department to preferentially use glass culler, processed from materials collected in Kitsap Coun~ which meets
WSDOT specifications for construction aggregate, as long as the glass cullet is used in appropriate construction applications,
readily available and cost-competitive with nattLral aggregate materials. Staff reconunends apprOVal of the attached
resolution.
8. RECOMMENDATION
No' ~g~ '}~ ' '
The Cit3.~ Council adopt Resolution .~ approving the preferenUal use of glass cullet as set forth therein.
RESPONSIBLE OFFICIAL: Director, PW&U
ENFORCEMENT OFFICIAL: Director, PW&U
EXPIRATION DATE: N/A
REVIEW DATE: N/A
PULLED TABLED
COUNCIL DIRECTIVE:
10. NOTICE OF ACTION
APPROVED~ DISAPPROVED
DATE:
11. AGENDA BILL NO:
2. CLEARANCE COMMENTS:
4. SUMMARY STATEMENT AND REQUIREMENT FOR COUNCIL ACTION (continued from page 1)
5. IMPACT ON NON-PASSAGE:
Glass cullet would not be allowed preferential use on PW&U projects.
6. IMPACT ON STAFFING, BUDGETS, FACILITIES, EQUIPMENT AND OTHER RESOURCES:
Staffing: NA
Budget: None
Facilities/Equipment: NA
7. RESEARCH SOURCES: RCW 42.19A.020
A RESOLUTION of the City Council of the City of
Bremerton, Washington, authorizing the Public Works and
Utilities Department to preferentially use glass cullet, processed
from materials collected in Kitsap County that meet WSDOT
specifications for construction aggregate, as long as the glass cullet
is used in appropriate construction applications, is readily available
and cost-competitive with natural aggregate materials.
WHEREAS, the there is more glass being recycled than can be remanufactured
back into glass containers in the Puget Sound region; and
WHEREAS, to solve the problem of oversupply the Clean Washington Center
researched and developed new uses for recycled glass cullet as construction aggregate; and
WHEREAS, the Washington State Department of Transportation (WSDOT) has
approved specifications for glass cullet to be used for a variety of construction aggregate
applications; and
WHEREAS, RCW 42.19A.020 encourages local jurisdictions to set goals and
standards for buying products made from recycled materials; NOW THEREFORE,
THE CITY COUNCIL OF THE CITY OF BREMERTON, WASHINGTON,
DOES HEREBY RESOLVE AS FOLLOWS:
SECTION 1. The City of Bremerton Public Works and Utilities Department
shall be authorized to preferentially use glass cullet, processed from materials collected in Kitsap
County which meets WSDOT specifications for construction aggregate, as long as the glass
cullet is used in appropriate construction applications, readily available and cost-competitive
with natural aggregate materials.
SECTION2. The authorization set forth in Section 1 of this Resolution shall be
extended to cover materials purchased for use by City forces as well as by persons or firms under
contract with the City of Bremerton.
SECTION 3. Severabili.tv. If any one or more sections, subsections, or
sentences of this Resolution are held to be unconstitutional or invalid, such decision shall not
affect the validity of the remaining portion of this Resolution and the same shall remain in full
force and effect.
SECTION 4. Effective Date. This Resolution shall take effect and be in force
immediately upon its passage.
day of
PASSED by the City Council of the City of Bremerton, Washington this __
,2002.
APPROVED AS TO FORM:
CAROL ARENDS, Council President
ATTEST:
ROGER A. LUBOVICH, City Attorney
KATHLEEN MCCLUSKEY, City Clerk
R: ',LE G.~U,Resolutions ,Recycle Glass2.doc
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