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Home My WebLink About01/22/02 AGENDA CITY COUNCIL MEETING AGENDA TUESDAY, JANUARY 22, 2002 1. PRE-COUNCIl,. STUDY SESSION: 5:00-5:30 P.M. A. General Council Business 2. CALL TO ORDER: 5:30 P.M. A. Pledge of Allegiance B. Invocation 3. CONSENT AGENDA A. Minutes of Meeting- January 16, 2002 (#AB02-012) 4. CLAIMS/CHECK REGISTERS 5. COUNCIL MEMBER REPORTS 6. COUNCIl,. COMMITTEE REPORTS 7. MAYOR'S REPORT 8. LEGISLATIVE REPORT 9. PUBLIC RECOGNITION - (Comments limited to 3-minutes) 10. NEW BUSINESS A. Change Order No. 2 for Evergreen Park Phase II Construction (#AB02-013) B. Contract for Customer Services with Puget Sound Energy (#AB02-014) 11. PUBLIC HEARINGS AND ORDINANCES ~,,~C~ce~. c~ A. Ordinance (First Reading) Establishing a Gofl~ Center Fund (#AB02-015) B. Ordinance (First Reading) Authorizing the Line of Credit Note; and accepting proposal of Bank of America (#AB02-016) 12. RESOLUTIONS A. Resolution No. 2851~A~h~oriz. in.g an Interfund Loan from Equipment Rental Fund to the {~EA~-m~q~#l~:enter Fund; and Approval of Budget Adjustment No. 2002-01 (#AB02-017) 13. ADJOURNMENT OF MEETING CITY COUNCIL MEETING JANUARY 22, 2002 SPEAKERS LIST If you wish to make an announcement, inform the Council of an issue, or ask a general question...P/ease provide information below so staff will be able to contact you. Thank you. NAME ADDRES S/TELEPHONE TOPIC Reminder: The next Council Meeting will be on Wednesday, January 30TM AGENDA BILL BREMERTON CITY COUNCIL 1. SUBJECT: FOR AGENDA OF: JANUARY 22, 2002 ORIGINATING DEPT: CITY COUNCIL MINUTES OF MEETiNG- JANUARY 16, 20O2 ORIGINATOR: CAROL ARENDS, PRESIDENT DATE SUBMITTED: JANUARY 18, 2002 2. CLEARANCES: (Comment onback if necessary) 3. EXHIBITS: ENDORSEMENT [~ INFORMATION ~] APPROVED FOR SUBMITTAL BY COUNCIL PRESIDENT: MAYOR: ~ ~ ~._~fz_~? 4. SUMMARY STATEMENT AND REQUIREMENT FOR COUNCIL ACTION: 5. RECOMMENDATION: 6. RESPONSIBLE OFFICIAL: ENFORCEMENT OFFICIAL: EXPIRATION DATE: REVIEW DATE: 7. NOTICE OF ACTION: PULLED [] TABLED [] APPROVED [-~ DISAPPROVED [] AMENDED [] DATE: COUNCIL DIRECTIVE: 02-012 8. AGENDA BILL NO.: 9. IMPACT OF NON-PASSAGE: 10. IMPACT ON STAFFING, BUDGETS, FACILITIES, EQUIPMENT OR OTHER RESOURCES: 11. RESEARCH SOURCES: TAPE #1815 UNAPPROVED DRAFT CITY COUNCIL MEETING MINUTES January 16, 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, January 16, 2002, at 5:30 P.M., with Council President Carol Arends presiding. Council members present were Mike Short, Will Maupin, Eric Younger, Mike Shepherd, Ed Rollman, Daren Nygren, and Cecil McConnell. Council member Glenn Jarstad was absent. Aisc present were Interim City Attorney Loren Combs; Paula Johnston, Deputy City Clerk; and Council Liaison Lori Smith. The meeting opened with the Pledge of Allegiance led by Council Member Cecil McConnell, followed by the invocation provided by Retired Pastor Alfred Dobson formerly of Charleston Baptist Church. President Arends made the following announcements: (1) Council held a Pre-Council Session in the Council Conference Room to discuss general Council business; (2) Council will hold a Study Session immediately following the Council Meeting to discuss "CITY COUNCIL OFFICE PROCEDURES"; AND (3) ITEM 10A "APPOINTMENT OF DAVID FARR TO THE BREMERTON HOUSING AUTHORITY BOARD OF COMMISSIONERS" HAS BEEN POSTPONED. CONSENT AGENDA A. Minutes of Meeting - January 9, 2002 (#AB02-006) #0080 M/S/C/U (McConnell/Rollman) Move to approve the 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. #0110 M/S/C/U (Younger/McConnell) On January 16, 2002, the Council does approve for payment those vouchers included and further described as follows: Check numbers 263696 through 263956 in the amount of $770,059.51. COUNCIL MEMBER REPORTS Will MauDin reported on his attendance at an interesting meeting sponsored by the Kitsap Regional Coordinating Council to discuss a number Parks & Recreation projects for Bremerton. Mike Shepherd urged the public to attend the Martin Luther King Memorial Scholarship Luncheon to be held Saturday, January 19 at the Oyster Bay Inn at 12:00 Noon; the Martin Luther King Jr. Celebration at the Kitsap Pavilion on Monday, January 21 beginning at 10:30 A.M.; and the next PFD meeting on Thursday, January 17 at 6:30 P.M. at the Eagle's Nest. Ed Rollman thanked the citizens for supporting his suggestion to update the City's Nuisance Ordinance; and lastly, he mentioned he was dismayed to hear that Glenn was back in the hospital. Daren Nygren announced that all citizens were welcome to attend his first District #3 Neighborhood meeting that would be held Tuesday, January 22, at the Manette Senior Center located at East 13th & Nipsic from 7:00 to 8:30 P.M. The League of Women Voters will present the proposed "Kitsap County Charter Amendments". He also reminded the public about the Bremerton High School Community Dance on Saturday from 7:00 to 11:00 P.M. sponsored by the Bremerton High School. TAPE #1815 City Council Reg. Mtg. Minutes January 16, 2002 Page 2 of 5 Carol Arends wished Glenn Jarstad a speedy recovery; as well as former Council member Wayne Olsen after his recent heart surgery. She also briefly reported on several meetings she attended. COUNCIL COMMITTEE REPORTS Will Maupin reported on an extremely busy week of attending meetings such as the Smart Growth Coalition, and the Puget Sound Regional Council Board meetings in Seattle with Carol Arends. Daren Nycjren briefly reported on his attendance at the Planning Commission meeting. MAYOR'S REPORT Mayor Bozeman provided reports on the following topics: Fire Department Contract negotiations have been ongoing; · A photographer would be available to photograph any of the Council members who support the Bremerton School Levy tomorrow at 2:45 in the Council Chambers; · The USS SACRAMENTO would be arriving Monday, January 21 at approximately 10:00 A.M.; · Wednesday, January 23 at 1:00 P.M. the USS CARL VINSON would be arriving; · The next PFD meeting would be Thursday, January 17 at 6:30 P.M. at the Eagle's Nest; · His support of the proposed Kitsap County Charter Amendments; · He still supports the proposed City Government building in spite of the recent ruling, and plans to provide an update on the project next week; · The Convention Center- and noted that Art Anderson has been retained to develop the RFP. · The Strategic Planning Retreat has been scheduled February 8 & 9 with the City Council; · Efforts are underway to clean up the City with the implementation of the "Downtown Improvement Project" to remove damaged phone booths, steam cleaning sidewalks, re-stripe crosswalks, repair signage, etc.; and · A report was provided on recent visits from potential developers interested in investing in Bremerton. Mayor Bozeman presented a plaque to Fred Schoneman in appreciation for his 30-year commitment to maintaining the carillon bells in downtown Bremerton, and for allowing the City to carry on the tradition. Cecil McConnell said a few words to honor and recognize the many years of service Mr. Schoneman has provided to the community, and accepted the plaque on his behalf. PUBLIC RECOGNITION H. Emily Moshay displayed red, white, & blue ribbons that Paul's Flower Shop is donating to decorate the City in honor of the homecoming for the USS SACRAMENTO and the USS CARL VINSON. These ribbons are also available for purchase for $5.00 by calling 479-7771. She also announced the "Right to Dream" event honoring Martin Luther King, Jr. at the Admiral Theater. John Cunningham representing the Reverend Shirley Herrmance of Ebenezer A.M.E. Church, invited everyone in Kitsap County to attend the 8th Annual Martin Luther King, Jr. Celebration Program, which would include a musical production by the Community Choir. Admission to the event on Monday, January 21,2002 from 10:30 A.M. to 1:30 P.M. is free, but they are accepting donations of non-perishable food items for the Food Bank. Citizens may call 373-1063 for more information. Don Larson informed the public that the Kitsap Conservation District (337-7171 ) was sponsoring a Tree Sale January 25; and encouraged the City to apply for a Department of Ecology, Urban Development Grant to help improve water quality, streams, and marine waters. TAPE #1815 City Council Reg. Mtg. Minutes January 16, 2002 Page 3 of 5 11A - PUBLIC HEARING AND RESOLUTION NO. 2848, REGARDING RECOVERY OF FEES FOR THE ABATEMENT OF GARBAGE AND DEBRIS; AND RE-SECURING THE HOUSE ON THF PROPERTY LOCATED AT 2133 11TM STREET {#AB02-008): Janet Lunceford, Building Inspector, stated that on November 7, 2001, Public Works removed appliances, garbage and debris from the property and re-boarded the house located at 2133 11th Street, pursuant to an 'Order to Remove Refuse within 72 hours' and a 'Notice and Order to Abate Unsafe Conditions'. The legal requirements for notice were met. The costs incurred for this action, including administrative fees, totaled $995.76. Council must now decide if the fees are just and reasonable, and how those fees should be collected. There were no comments from the public. Mr. Shepherd asked if the house could just be demolished. Ms. Lunceford responded that damage to the structure does not appear to be severe enough to warrant a demolition, however, there will likely be foreclosure on the house by the County in about a year from now. #1445 M/S/C/U (Shepherd/Nygren) Move to pass Resolution No. 2848, ordering that the fees in the amount of $995.76 incurred for the abatement of garbage and debris, and re-securing the building located at 2133 11th Street be collected as reasonable abatement costs and become a lien against the property. 11B- PUBLIC HEARING AND RESOLUTION NO. 2849, REGARDING RECOVERY OF FEES FOR THE ABATEMENT OF A DANGEROUS STRUCTURE ON THE PROPERTY LOCATED AT 3304 WHEATON WAY (#AB02-009): Janet Lunceford, Building Inspector, mentioned that on October 22, 2001, Public Works demolished a fire-damaged building located at 3304 Wheaton Way after the owners, Patricia Fireston, Roy Firestone, Paul Firestone, and Clyde Firestone, failed to either repair or demolish the structure as ordered by a 'Notice and Order to Abate Unsafe Condition' issued in February of 2001. The legal requirements for notice were met. The costs incurred for the work, including administrative fees, totaled $13, 272.06. Council must now decide if the fees are just and reasonable, and how those fees should be collected. There were no comments from the public. #1595 M/S/C/U (Younger/Maupin) Move to pass Resolution No. 2849, ordering that the fees in the amount of $13,272.06 incurred for the abatement of a dangerous building located at 3304 Wheaton Way be collected as reasonable abatement costs, and become a lien against the property. 11C - PUBLIC HEARING AND RESOLUTION NO. 2850, REGARDING RECOVERY OF FEES FOR THE ABATEMENT OF GARBAGE AND DEBRIS ON THE PROPERTY LOCATED AT 1147 PENNSYLVANIA AVENUE (#AB02-010): Janet Lunceford, Building Inspector, repeated that on November 14, 2001, Public Works removed furniture, appliances, garbage, and debris from the property located at 1142 Pennsylvania Avenue pursuant to an 'Order to Remove Refuse within 72 Hours'. The legal requirements for notice were met. The property is in the process of foreclosure; however the mortgage company does not yet have control of the property, and declined to comply with the order. The cost of the action, including administrative fees, totaled $1,001.23. Council must now decide if the fees are just and reasonable, and how those fees should be collected. There were no comments from the public. TAPE #1815 City Council Reg. Mtg. Minutes January 16, 2002 Page 4 of 5 Mr. Maupin asked if the previous owner left the garbage, or if they believed garbage was being dumped others. Ms. Lunceford believed all the garbage was left by the previous owner. #1795 M/S/C/U (Shepherd/Maupin) Move to pass Resolution No. 2850, ordering that the fees in the amount of $1,001.23 incurred for the abatement of garbage and debris, including the hot tub, located at 1142 Pennsylvania Avenue be collected as reasonable abatement costs and become a lien against the property. 11D- PUBLIC HEARING ON "PUBLIC PARTICIPATION PROGRAM" FOR COMPREHENSIVF PLAN UPDATE (#AB02-011): Dri Ralph and Matthew Keogh, Growth Planners with the Community Development Department, provided the following information: The City of Bremerton, acting under the Growth Management Act (RCW 36.70A.40) must establish and broadly disseminate a public participation program. The law, as amended in RCE 36.70A. 140, included a new mandate that the program provide for the following: broad dissemination of proposals and alternatives, opportunity for comments, public meetings after effective notice, provision for open discussion, communication programs, information services, and consideration of and response to public comments. In response, a draft program was prepared through a Planning Commission subcommittee, and then approved by the full Commission at their November 26, 2001 meeting. Following Council suggestions for improvements and public input at the Public Hearing held on January 16, 2002, staff recommends that Council adopt the Program at the next regularly scheduled Council meeting on January 22, 2002. The proposed Public Participation Program provides the framework for public input on the review, amendment, and ultimate update of the City's Comprehensive Plan. The program will specifically guide the 2002 Comprehensive Plan update process. The program is also designed to ultimately replace the existing Comprehensive Plan's "Citizen Involvement Program", providing updated public involvement procedures for future amendment and updates to the Comprehensive Plan. During the 2002 update process, this program will be proposed as an Appendix to the updated Comprehensive Plan. H. Emily Moshay, who currently serves on the Planning Commission, expressed her appreciation for the work provided by Dri Ralph and Matt Keogh. She endorsed the idea of "one common name" for the program that would encompass ALL areas of the City to promote commonality. Helen Miller asked if the program would include citizen participation with the opportunity for small group discussions. Ms. Ralph responded yes, that public participation was addressed in the visioning process. President Arends asked for additional information on a timeframe. Ms. Ralph stated that a timeframe has been mandated by the State for a proposed plan to be complete by September. MS. Miller inquired if an Advisory or Steering Committee would be selected? Mr. Keogh responded that the Planning Commission would act as the Advisory Committee. In addition, he discussed the time-commitments required for volunteers, and established that volunteers would most likely be required to attend committee meetings at least once a week for a two-month period. Mr. Nygren encouraged the public to participate in this process, and encouraged the Council to get involved by acting as conduits to the elderly and citizens who are unable to attend regular meetings. Mr. Short asked if a web site would be established for electronic input? Mr. Keogh replied that the existing City web page, at the Planning Department link, had the current draft to the Comprehensive TAPE #1815 City Council Reg. Mtg. Minutes January 16, 2002 Page 5 of 5 Plan; and an e-mail address would be created for comments. He indicated that as soon as the Council endorsed this process, it would be advertised thoroughly. Mr. Maupin inquired how they planned to ascertain "innovative ideas". Ms. Ralph responded that she and Matt have taken the lead in the early steps of this process, and plan to facilitate the meetings with "visually" and "dynamic" presentations to get people thinking and to help draw out ideas. They will then follow up on a regular basis with the Planning Commission to report on their findings. Mr. Rollman thanked Ms. Ralph and Mr. Keogh for their offer to speak at the various Council district meetings. #2812 M/S/C/U (Younger/McConnell) Move to approve the "Public Participation Program", instructing staff to proceed in the 2002 Comprehensive Plan update process in the manner prescribed for public involvement. With no further business, the Council meeting was adjourned at 6:50 P.M. The Council then reconvened in the Council Conference Room for a Study Session to discuss "CITY COUNCIL OFFICE PROCEDURES". Prepared and Submitted by: LORI SMITH, Council Liaison Attest: PAULA JOHNSTON, Deputy City Clerk CAROL ARENDS, City Council President City of Bremerton CA/PJ/Is/cge C: Normal Distribution File 7 AGENDA BILL BREMERTON CITY COUNCIL SUBJECT: Evergreen Park Phase II FOR AGENDA OF: January 23, 2002 Park Construction - Glacier Environmental ORIGINATING DEPT: Parks & Recreation Services, Inc. Change Order No. 02 ORIGINATOR: Becky Lorber, Rec. Manager DATE SUBMITTED: January 16, 2002 2. CLEARANCES: 3. EXHIBITS: (Comment on back if necessary~j~ _ ~.~ l. Change Order No. 02 Parks & Recreation Director:/,ff~~/~ City Treasurer: v ~ ._~.~... -_, City Attorney: ~'d~'~-.- ~ ~ Purchasing Supervisor: ~-4:v~ _,~.-~.j~.~.~..~ ,~/ Fiscal & Budget Commi~ee~,~"~.~~~~~ 4. SUMMARY STATEMENT AND REQUIREMENT FOR COUNCIL ACTION: This Change Order No. 02 includes seven (7) items for the overall reduction cost of $75,844.12 plus sales tax. The seven items include: 1. Removal of Alternate A, Lighting to Phase I. ($117,138.00) 2. Out of sequencing due to delayed Army Corp Permit 35,467.00 3. Removal of~ inch copper service and consequent installation of 1 ½ inch copper service 1,432.01 4. Install 2" PRV on irrigation 450.00 5. Add handicapped curb cut into Phase I parking area 975.04 6. Reinstallation of conduit caused by PSE delay 1,741.80 7. Extension of Builders Risk Policy due to delays in construction 1,228.03 Total ($ 75,844.12) The recommendation before City Council is to approve this Contract Change Order 02 to Glacier Environmental Services, Inc. for the reduced amount of $75,844.12, not including sales tax. 8. RECOMMENDATION: That City Council authorizes and directs the Mayor to approve Change Order No. 02 and adjust Glacier Environmental Services, Inc. contract by the amount of $75,844.12, not including sales tax, subject to City Administrative Polices and Procedures. 9. RESPONSIBLE OFFICIAL: ENFORCEMENT OFFICIAL: EXPIRATION DATE: REVIEW DATE: 10. NOTICE OF ACTION PULLED TABLED APPROVED DISAPPROVED__ COUNCIL DIRECTIVE: DATE: 11. AGENDA BILL #: 2. CLEARANCE COMMENTS: IMPACT OF NON-PASSAGE: The City's contract with Glacier Environmental Services, Inc. will not accurately reflect the project's true costs and scope, potentially precluding project closure, including DOE and IAC grant fimds being used for the park construction. IMPACT ON STAFFING, BUDGETS~ FACILITIES~ EQUIPMENT OR OTHER RESOURCES: No significant impact on staffing is anticipated. The final cost of the project while reducing city costs, will cause a corresponding reduction relative to grant money receipts. 7. RESEARCH SOURCES: Bremerton Parks & Recreation 680 Lebo Blvd · Bremerton, WA 98310 · (360) 478-5305 · FAX (360) 478-5882 CHANGE ORDER PROJECT: Evergreen Park Phase II-Park Construction Date: January 23, 2002 512 Sheldon Blvd., Bremerton Change Order No.: 02 Project No.: 99252 CLIENT: Department of Parks and Recreation 680 Lebo Blvd., Bremerton CONTRACTOR: Glacier Environmental Services, Inc. City of Bremerton 12521 Evergreen Dr., Suite A 239 4~ St. Mukilteo, WA 98275 Bremerton, WA 98337 Atto: Jay Kizer, Project Manager This Change Order is issued pursuant to the General Provisions of the Contract relating to PAYMENT FOR EXTRA WORK and shall not be effective until approved by the city of Bremerton. The City intends to proceed with the change after a cost therefore has been agreed to, and the contractor is directed to proceed with the activities in such manner as to preclude the necessity for later altering the work in order to accomplish this change. This document must be completed in every detail, signed, dated, and returned in TRIPLICATE to the ABOVE OFFICE within TEN (10) calendar days from date of issue. Upon approval, a validated copy will be sent to the contractor as his authority for proceeding with the change (or as confirmation of previously issued instructions). Description: Accomplish the following change(s) in contract work: 1. Delete in its entirety Bid Alternate A, Lighting Improvement to Phase I Park REDUCTION sum of $117,1138. O0 2. Shoreline construction activities out of sequence due to the delay in receiving the Corp of Engineers permit ADDITIVE su~n of 35, 467. O0 3. Remove 3/4" copper service & PRV from meter to Restroom Building. Install 1 ½" copper service and PRV, install 1" isolation valve for jug filler. ADDITIVE sum of 1,432. O! 4. Install 2" PRV on irrigation system ADDIVIVE sum of 450. O0 5. Add curb cut and wheel chair path in Phase I parking area ADDITIVE sum of 9 75.04 6. Remove and reinstall electrical conduit to commercial structure on Sheldon Blvd. due to delay of direct burial installation by PSE ADDITIVE sum of i, 741.80 7. Extension of Builders Risk Policy #1MB4525980 through 12/31/01. ADDITIVE sum of !,228. 03 Total reduction cost for Change Order No. 02 is ($75.844.12). Contract amount prior to this Change Order (not incl. WSST): $1,325,335.66 Contract amount including Change order No. 1 for $29,286.86 (not incl. WSST): 1,354,622.40 Contract amount including Change Order No. 2 for ($75,844.12) (not incl. WSST): 1,278,778.30 ACCEPTED BY: Glacier Environmental Services, Inc. Steve Miles Title Date VERIFIED BY: Parametrix--Project Manager Peter Batuello Title Date RECOMMENDED BY: City of Bremerton Department of Parks and Recreation Jim Spencer Title Date APPROVED BY: City of Bremerton Carey Bozeman, Mayor Date AGENDA BILL BREMERTON CITY COUNCIL 1. SUBJECT: FOR AGENDA OF: Jan. 22, 2002 ORIGINATING DEPT: 'T"~'a~-~ ~ Contract for Customer Services with Puget Sound Energy ORIGINATOR: P,~ DATE SUBMITTED: Jan. 8, 2'002 2. CLEARAtNC~:/'~r?ent of back if necessary) 3. EXHIBITS: Attorn D ir. Ad min. Servic~s,~,~_.__.,, Proposed Co nt tact Dir. P.W. & U. .,sca, · Operations ~~ ENDOR~~- ~~ __ APPROVED BY COUNCIL PRESIDENT FOR SUBMITTAL: The Gity has continued tho pdntin~ and mailin~ of utility bills for a numgor of years with Oood results. The proposed contra~ ~ill conIinue ~his pra~ice wilh a new vendor and will expand the contracted funOions ~o include the ~mcessinO of customer payments. Due the the advantaoos of economios o[ scalo and of advanced technology, the work can ~e accomplished more quickly and economically through tho porposod contract than ~y Gity staff. 8. RECOMMENDATION: Motion to approve the contract for customer cam services and authorize the Mayor to execute the same. 9. RESPONSIBLE OFFICIAL: Treasurer ENFORCEMENT OFFICIAL: Mayor EXPIRATION DATE: N/A REVIEW DATE: N/A 10. NOTICE OF ACTION COUNcILPULLED DIRECTIvE:TABLED APPROVED DISAPPROVED ~ AMENDE[~ B 11. AGENDA BILL NO: ~ ~ ~/~ 2. CLEARANCE COMMENTS: 5. IMPACT ON NON-PASSAGE: The City will continue negotiations with PSE or continue with the current contract for utility bill printing and payment processing by staff. 6. IMPACT ON STAFFING, BUDGETS~ FACILITIES~ EQUIPMENT OR OTHER RESOURCES: The savings derived from this contract were included in the development of the mid-biennium budget review. Annual cost of the contract is estimated at $35,000. 7. RESEARCH SOURCES: Staff analysis. AGREEMENT FOR CUSTOMER CARE SERVICES This Customer Care Services Agreement ("Agreement") is dated, for reference purposes only, this eighth day of January 2002, is made and entered into by and between Puget Sound Energy, Inc., a Washington corporation ("PSE"), and City of Bremerton, a municipal corporation of the state of Washington (the "City"). Each of PSE and the City is sometimes referred to in this Agreement as "Party"; both of PSE and the City are sometimes referred to in this Agreement together as "Parties." Recitals A. The City operates water, sewer and stormwater systems for its residents and commercial activities. B. PSE provides bill printing and mailing services and payment processing services (as more fully described in Section 1, "Customer Care Services") to municipal and private utilities. C. The City desires to purchase from PSE, and PSE desires to provide to the City, Customer Care Services, subject to the terms and conditions of this Agreement. Agreement PSE and the City therefore agree as follows: Section 1. Customer Care Services Subject to the terms and conditions of this Section 1, PSE will provide to the City, and the City will accept from PSE, Customer Care Services as follows: 1.1 Bill Printing and Mailing Services (a) Not more often than eight (8) times in any calendar month during the term of this Agreement, the City will provide to PSE an electronic data file, in such form as the Parties may mutually agree upon, containing the relevant billing information for the City's Customers. PSE will notify the City within twenty-four (24) hours of receipt of such data file if it encounters any problems in reading or using such data file. (b) Within two (2) business days after PSE's receipt of a data file referred to in Section 1. l(a) without problem, PSE will print and mail to each of the City's Customers included in that file a billing statement containing the reformation agreed CUSTOMER CARE SERVICES AGREEMEN'T PAGE 1 upon by the parties. PSE will include with each billing a windowed envelope for remittance of payment. The City will be responsible for any billings to Customers other than those provided by PSE pursuant to this Section 1.1. (c) PSE will print and mail to any Customer a past due payment notice, provided that the City delivers to PSE or its designee, detailed information, in such form as the Parties may mutually agree upon, regarding the applicable past due payment amount and any message or text desired by the City to be included with such notice. (d) The form of the statements to be used by PSE for billings and notices pursuant to this Section 1.1 will be consistent with PSE's standard design. PSE's standard design is one page per bill. PSE will not change the standard to two pages per bill without the prior written consent of the City. The City will provide to PSE a digitized logo. PSE will include with each statement a windowed envelope for remittance of payment. (e) The City will provide to PSE accurate and current addresses for each of the City's Customers. Any undeliverable bill will be returned to the City at its cost and expense. (f) At the City's request, PSE will include in each billing envelope (in addition to the payment remittance envelope) a Mail Insert and Additional Mail Insert, delivered to PSE by the City, designed in accordance with PSE specifications; provided, that: (i) a "Mail Insert" means a one or two page insert that complies with all of the specifications provided by PSE; and (ii) PSE will not be obligated to include with a statement for any billing period any Mail Insert or Additional Mail Insert provided to PSE or its designee less than two days prior to the end of such billing period. PSE will not be responsible for the printing of any Mail Insert or Additional Mail Insert. The City shall pay PSE for each Additional Mail Insert as set forth in Section 2.1. For the purposes of this Agreement, "Additional Mail Insert" means each page of any single- or multiple-page insert to be included in any billing statement other than the Mail Insert. (g) PSE will protect the Customer information provided by the City to PSE pursuant to this Section 1.1 against any unauthorized use or disclosure to the same extent that PSE protects its own customer information of a similar nature against unauthorized use or disclosure; provided, however, that this Section 1. l(g) will not be interpreted or construed to prohibit (i) any use or disclosure that is necessary for PSE's performance of its obligations under this Agreement, (ii) any use or disclosure required by applicable law (e.g., pursuant to applicable securities laws or legal or regulatory process) or (iii) any use or disclosure made with the prior written consent of the City. CUSTO,MER CARE SERVICES AGREEMENT PAGE 2 1.2 Payment Processing Services (a) On each working day during the term of this Agreement, PSE will receive all paymems made by Customers that arc delivered to a caller box in the downtown Bellevue Post Office designated by PSE in the Customers' billing statements ("Caller Box"). (b) Within two (2) business days after receipt of any Customer payment at thc Caller Box, PSE will remit such payment amount (which remittance may be an aggregate amount of all Customer payments received on the same day) to a bank account designated by the City ("Remittance"). On the same day as PSE makes any such remittance, PSE will provide to the City an electronic data file, in a format mutually agreed upon, describing each Customer whose payment has been received by PSE and the amount paid by such Customer. PSE will have no responsibility for the processing of any payments delivered by the Customer to any location other than the Caller Box. (c) PSE will keep accurate records of total daily payment amounts received from Customers at the Caller Box and amounts remitted by PSE to the City's bank account pursuant to this Agreement. PSE will make a correct copy of such records available to the City upon the City's request. (d) During the term of this Agreement, PSE will send to the City daily by first class U.S. mail any payments by Customers that do not meet the electronic processing tolerances established by PSE and the City jointly. (e) PSE will make, once every twelve (12) months a compact disc ("CD") that contains electronic copies of all customer stubs and payment checks then received by PSE ("CD Service"). The City shall pay PSE for the CD Service as set forth in Section 2.2. Section 2. Compensation 2.1 Payment Amount- Bill Printing and Mailing Services (a) During Imtial Term. As full compensation for PSE's providing the Bill Printing and Mailing Services of the Customer Care Services to the City during the Imtial Term, the City will pay to PSE an initial set up fee for Bill Printing and Mailing Services equal to Five Hundred dollars ($500.00) and, on a monthly basis, the following amounts: (i) for each account bill page and each past due notice printed, an amount equal to Sixteen cents ($0.16) ("Bill Rate"); and (ii) for each Additional Mail Insert, an amount equal to One cent ($0.01 ) ("Insert Rate"); and CUSTOMER CARE SERVICES AGREEMENT PAGE 3 (iii) the mount charged for fn-st class postage for each account bill mailing (b) During Renewal Term. As full compensation for PSE's providing the Bill Printing and Mailing Services of the Customer Care Services to the City during each Renewal Term, the City will pay to PSE, on a monthly basis, the following amounts: (i) for each account bill page and each past due notice printed, an amount equal to the product of (A) the Bill Rate in effect during the Initial Term or the immediately preceding Renewal Term, whichever is applicable, multiplied by (B) the change in CPI for all urban consumers, Seattle-Tacoma index (1982- 84= 100) as pubhshed by the Bureau of Labor Statistics from the imtial month of the last year of the prior term to the month proceeding the commencement of the Renewal Term ("CPI"); and (ii) for each Additional Mail Insert, an amount equal to the product of (A) the Insert Rate in effect during the Initial Term or the immediately precedmg Renewal Term, whichever is applicable, multiplied by (B) the change in CPI noted in (i) above; and (iii) the amount charged for first class postage for each account bill mailing. 2.2 Payment Amomlt - Payment Processing Services (a) During Initial Term. As full compensation for PSE's providing the Payment Processing Services of the Customer Care Services to the City during the Imtial Term, the City will pay to PSE an initial set up fee for Payment Processing Services equal to Five Hundred dollars ($500.00), an initial set up fee for the CD Service equal to Zero dollars ($0.00) and, on a monthly basis, the following amount: (i) for each account bill payment received by PSE for processing on the City's behalf, whether posted or returned to the City, an amount equal to Seventeen cents ($0.17) ("Processing Rate") (b) During Renewal Term. As full compensation for PSE's providing the Payment Processing Services of the Customer Care Services to the City during each Renewal Term, the City will pay to PSE, on a monthly basis, the following amount: (i) for each account bill payment received by PSE for processing on the City's behalf, an amount equal to the product of(A) the Processing Rate in effect during the Imtial Term or the immediately preceding Renewal Term, whichever is applicable, multiplied by (B) the annual CPI referenced in 2.1 (b)(i) above. CUSTOMER C,-MLE SERVICES AGREEN4ENT PAGE 2.3 Payment Method The City will pay to PSE the amount of any invoice for the payment amounts referred to in Sections 2.1 and 2.2 within thirty (30) days after the date received of such invoice. Any payment not made when due will accrue interest at the rate of one percent (1%) per month or the highest rate permitted by applicable law, whichever is less, determined and compounded daily from the date due until the date paid. The City's payment of such late fees will not excuse or cure any breach or default for late payment. PSE may accept any check or payment without prejudice to its rights to recover the balance due or to pursue other rights or remedies. No endorsement or statement on any check or payment or letter accompanying any check or payment or elsewhere will be construed as an accord or satisfaction. All amounts payable under this Agreement are denominated in United States dollars and the City will pay all amounts payable under tl~s Agreement in lawful money of the United States. Section 3. Relationship of Parties The Parties acknowledge and agree that they are dealing with each other hereunder as independent contractors. Nothing contained in this Agreement will be interpreted as constituting either Party as the joint venturer, agent, employee, franchisee or partner of the other Party or as conferring upon either Party the power of authority to bind the other Party in any transaction with third parties. Section 4. Term and Termlnation 4.1 Initial Term, Renewal Term, Termination The initial term of this Agreement will commence as of the date this agreement is executed ("Effective Date") and, unless earlier terminated as provided in this Agreement, will expire on the third (3rd) anniversary of the Effective Date ("Initial Term"). After the Initial Term, this Agreement shall automatically renew for consecutive one (1) year periods (each, a "Renewal Term"), unless either Party provides to the other Party, not less than one hundred twenty (120) days prior to the expiration of the then-current Initial Term or Renewal Term, written notice of termination of this Agreement; provided, however, that no termination under this Section 4.1 will relieve either Party from any of its obligations or liabilities incurred during the then-current Imtial Term or Renewal Term. CUSTOMER CARE SERVICES AGREEMENT PAGE 5 4.2 Termination for Breach or Default If either Party commits a material breach of or default under this Agreement, then the Non-Breaching Party may give the Breaching Party written notice of the breach or default (including a statement of the facts relating to the breach or default and the provisions of this Agreement that are applicable to such breach or default). If the Breaching Party fails to cure the specified breach or default within thirty (30) days after receipt of such notice (or such later date as may be specified in such notice), then the term of this Agreement will terminate at the end of the cure period specified in the default notice. Section 5. Limitation of Liability and Damages Each party will be liable only for actual, direct and consequential damages arising from or related to this Agreement. Except to the extent necessary to satisfy any liability for third-party claims under Section 6, neither party's total liability (whether in contract, tort or otherwise) with regard to this Agreement (including, but not necessarily limited to, any liability arising out of any performance, nonperformance, breach or default under this Agreement) will, in the aggregate, exceed the amount of $250,000. Section 6. Indemnification 6.1 By PSE PSE will indemmfy, defend, and hold the City harmless from any and all losses, claims, actions, damages and expenses arising out of or resulting from, PSE's negligence or willful misconduct under this Agreement except to the extent that such losses, claims, actions, damages and expenses are caused by or arise out of the negligence of the City. In the event that any suit based upon such losses, claims, actions, damages, or expenses is brought against the City, PSE upon notice of the commencement thereof, will defend the same at its sole cost and expense, and if final judgment be adverse to the City, or the City and PSE jointly, PSE will promptly satisfy the same. 6.2 By The City The City will indemnify, defend, and hold the PSE harmless from any and all losses, claims, actions, damages and expenses arising out of or resulting from the City's negligence or willful misconduct under this Agreement except to the extent that such losses, claims, actions, damages and expenses are caused by or arise out of the negligence of PSE. In the event that any suit based upon such losses, claims, actions, damages, or expenses is brought against PSE, the City upon notice of the commencement thereof, will defend the same at its sole cost and expense, and if final judgment be adverse to PSE, or the City and PSE jointly, the City will promptly satisfy the same. CUSTOMER C3_RE SERVICES AGREEMEN~I' PAGE 6 /? Section 7. Subcontracting PSE may subcontract or delegate performance of the Customer Care Services to any subsidiary or company without the prior written authorization of the City. Any such delegation or subcontracting of performance of any of the Customer Care Services to a PSE subsidiary or third party entity will not relieve PSE of its obhgation to perform the Customer Care Services m accordance with this Agreement. Section 8. Notices Any notice, request or other communication specifically provided for under this Agreement will be provided in writing and will be delivered in person, by first-class U.S. mail, stamped with the required postage, via facsimile, accompanied by confn-mation of receipt, or by express mail or similar form of overnight delivery, in each case properly addressed to the recipient specified below: If to the City: City of Bremerton 239 Fourth Street Bremerton, WA 98337 Attn: City Treasurer If to PSE: Puget Sound Energy, Inc. P.O. Box 90868 Bellevue, WA 98009-0868 Attn: Purchasing Manager Any notice, request or other communication delivered as set forth above will be deemed to be effective upon receipt. Any Party may change its address specified in this section by giving the other Party notice of such change in accordance with this section. Section 9. Force Majeure Neither Party will be liable to the other for, or be considered to be m breach of or default under this Agreement because of, any delay or failure in performance by such Party under this Agreement to the extent such delay or failure is due to any cause or condition beyond such Party's reasonable control. Section 10. Non-Waiver The failure of the City or PSE to insist upon or enforce strict performance of any of the provisions of this Agreement or to exercise any rights under this Agreement will not be construed as a waiver or relinquishment to any extent of its right to assert CUSTOMER CARE SERVICES AGREEMENT PAGE 7 or rely upon any such provisions or rights in that or any other instance; rather, the same will be and remain in full force and effect. Section 11. Severability The invalidity or unenforceability of any provision of this Agreement will not affect the other provisions hereof, and this Agreement will be construed in all respects as if such invalid or unenforceable provisions were omitted. Section 12. Rights Cumulative The rights and remedies of each Party set forth in any provision of this Agreement are in addition to and do not in any way limit any other rights or remedies afforded to such Party by law. Section 13. No Third Party Beneficiary This Agreement will not be construed to create rights in, or to grant remedies to any third party as a beneficiary of this Agreement or of any duty, obligation or undertaking established herein. Section 14. Governing Law The obligations of each Party trader this Agreement will be governed by and construed in accordance with the laws of the state of Washington, without reference to any roles governing conflict of laws, except to the extent such laws may be preempted by the laws of the United States of America. Section 15. Governmental Authority This Agreement is subject to the rules, regulations, orders and other requirements, now or hereafter in effect, of all regulatory authorities having jurisdiction over this Agreement, the Parties or any of them, including, without limitation, the Washington Utilities and Transportation Commission. All laws, ordinances, rules, regulations, orders and other requirements, now or hereafter in effect, of govermnental regulatory authorities that are required to be incorporated in agreements of this character are by this reference incorporated in this Agreement. Section 16. Jurisdiction and Venue Neither Party will commence or prosecute any suit, proceeding or claim to enforce the provisions of this Agreement, to recover damages for breach of or default in this Agreement, or otherwise arising under or by reason of this Agreement, other than in the state and federal courts of the State of Washington. Both parties hereby CUSTOMER CARE SERVICES AGREEMENT PAGE 8 irrevocably consent to the jurisdiction of the courts of the state of Washington with venue laid in King County or Kitsap County. Section 17. Amendment No amendment or modification of any provision of this Agreement will be valid unless set forth in a written amendment to this Agreement. This Agreement may be amended only with the express written consent of both of the Parties and no provision of this Agreement will be varied or contradicted by any oral agreement, course of dealing or performance or any other matter not set forth hereafter in a written agreement signed by both of the Parties. Section 18. Entire Agreement This Agreement constitutes, on and as of the date hereof, the entire agreement of the Parties with respect to the subject matter of this Agreement and all prior understandings or agreements, whether written or oral, between the Parties with respect to the subject matter of this Agreement are hereby superseded in their entireties. Each provision of this Agreement is the product of negotiation between the Parties. Any role of interpreting ambiguities against the interests of the drafting party will not be applied in resolving any dispute over the meaning of any provision of this Agreement or the intent of the Parties with respect to such provision. Section 19. Counterparts This Agreement may be executed in any number of counterparts, each of which so executed will be deemed to be an original, and such counterparts together will constitute one and the same instrument. Once signed, any legible reproduction of this document made by reliable means (for example, photocopy or facsimile) is considered an original. In witness whereof, the Parties have executed this Agreement on the date first above written. City of Bremerton Puget Sound Energy, Inc. By By Its Its CUSTOMER CARE SERVICES AGREEMENT PAGE 9 AGENDA BILL BREMERTON CITY COUNCIL Jan. 22, 2002 1. SUBJECT: ORDINANCE NO. FOR AGENDA OF: Jan. 30, 2002 ORIGINATING DEPT: :i"~'~ ~'~ the Convention Center Fund ORIGINATOR: R. Harm~ Establishing DATE SUBMITTED: Jan. 8, 2002 2~ ~m~f back if necessary) 3. EXHIBITS: Attomey/.l~ ,g.~, Proposed Ordinance Dir. Admin. Service~ ~ Fiscal&Budget ~~ MAYO~~~ ~ ~ ' COUNCIL PRESIDENT 4. SUMMARY STATEMENT AND REQUIREMENT FOR COUNCIL ACTION: If approved, the proposed ordinance will create a new fund to be called the Convention Center Fund. This fund is intended to provide for the budget and accounting associated with acquisition and development of the convention center and related facilities and improvements. 8. RECOMMENDATION: Motion to approve on first reading the ordinance creating the Convention Center Fund. Motion to pass on second reading Ordinance No. ~ creating the Convention Center Fund. 9. RESPONSIBLE OFFICIAL: Treasurer ENFORCEMENT OFFICIAL: Mayor EXPIRATION DATE: N/A REVIEW DATE: N/A 10. NOTICE OF ACTION COUNcILPULLED DIRECTIvE:TABLED APPROVED DISAPPROVED AMENDED ~~_ A 11. AGENDA BILL NO: - 2. CLEARANCE COMMENTS: 5. IMPACT ON NON-PASSAGE: The new fund will not be created. 6..~.~.PACT ON STAFFING, BUDGETS, FACILITIES, EQUIPMENT OR OTHER RESOURCES: Budget for the initial portion of the project will be provided by separate agenda bill. 7. RESEARCH SOURCES: Staff analysis. ORDINANCE NO. AN ORDINANCE establishing a Convention Center fund and creating new Chapter 3.10 in the Bremerton Municipal Code WHEREAS, the City, in partnership with Kitsap Transit Authority, private companies and other public entities intends to develop a project that could include a convention center, hotel, office space, parking garage, retail space, public spaces, and other amenities and related facilities and improvements; and WHEREAS, the City Treasurer has advised the Council that it is sound financial management to have a designated fund within the City's accounting system for such project; now, therefore, THE CITY OF BREMERTON DOES ORDAIN: Section 1. New Chapter. Chapter 3.10 to the Bremerton Municipal Code is hereby added to read as follows: CHAPTER 3.10 CONVENTION CENTER FUND 3.10.010 Established. The City Treasurer of the City of Bremerton is hereby authorized and directed to establish a special fund to be known as the "Convention Center Fund" to be used for the acquisition and development of the City's convention center and related facilities and improvements. 3.10.020 Source of Funds. The City Treasurer is hereby authorized and directed to deposit to this fund any and all moneys received by the City for the acquisition and development of the convention center and related facilities and improvements. 3.10.030 Use of Funds. Moneys of this fund shall be expended for all lawful purposes related to acquisition and development of the convention center and related facilities and improvements. However, no money from the fund may be used for the operation of the convention center or any of the related facilities. Section 2. Effective Date. This ordinance shall become effective ten (10) days after passage and publication. APPROVED by the City Council of the City of Bremerton this day of ,2002. PASSED by the City Council of the City of Bremerton this day of ., 2002. CAROL ARENDS, Council President Convention Center Fund.ord Page 1 Approved this day of ,2002, CARY BOZEMAN, Mayor ATTEST: KATHLEEN L. McCLUSKEY, City Clerk Convention Center Fund.oral Page 2 AGENDA BILL BREMERTON CITY COUNCIL Jan. 22, 2002 I. SUBJECT: ORDINANCE NO. FOR AGENDA OF: Jan. 30, 2002 ORIGINATING DEPT: Treas u rpr~.'v~3/ Authorizing the Issue of a Line of Credit Note and ORIGINATOR: Rich I-le~na~ Accepting the Proposal of Bank of Amedca. DATE SUBMITTED: January 10, 2002 2. CLEARANCES: Comment of back if necessary) 3. EXHIBITS: Dir. Admin Serv. ~ Note Ordinance Fiscal & Budget /'~/~--~ . Bank Offer Letter Operations ENDORSE, NInThS ,~ It~:~A~:~ __ APPROVED BY COUNCIL PRESIDENT FOR SUBMITTAL: 4. SUMMARY STATEMENT AND REQUIREMENT FOR COUNCIL ACTION: This ordinance will authorize a Limited Tax General Obligation note which will be issued to secure a line of credit with the Bank of Amedca. This note will replace an existing note, issued in 1994, which provides financing to the City's Abatement Revolving Fund. This fund utilizes the line of credit to finance qualifying abatement actions. The debt service requirements of the line of credit are paid from the collection of abatement liens. 8. RECOMMENDATION: Move to approve on first reading the ordinance authorizing the note issue and accepting the offer of Bank of America. Move to pass on second reading Ordinance No.~authorizing the note issue and accepting the offer of Bank of America. 9. RESPONSIBLE OFFICIAL: Treasurer ENFORCEMENT OFFICIAL: Mayor EXPIRATION DATE: Jan. 31, 2005 REVIEW DATE: N/A 10. NOTICE OF ACTION PULLED TABLED APPROVED DISAPPROVED AMENDED ~_f~ COUNCIL DIRECTIVE: 11. AGENDA BILL 2. CLEARANCE COMMENTS: 5. IMPACT ON NON-PASSAGE: The City will not have this funding source available to carry out abatement actions. Also, an alternative financing source will be necessary for certain ongoing abatement actions. 6. IMPACT ON STAFFING, BUDGETS, FACILITIES, EQUIPMENT OR OTHER RESOURCES: The budgetary impact will be determined by the number and size of abatement actions qualifying for Line of Credit financing which are undertaken. 7. RESEARCH SOURCES: Staff analysis, bond counsel, and negotiations with B. of A. eankofAmerica. Bank of Amerh:a Public Sector Banking WA1-501-~4-0~ Kerrin M. Gibbons 8o0 5th Avenue, 34th F!oor Senior Vice President Seattle, WA 98104 Public Sector Banking December 11, 2001 Mr. Richard E. Hanna Treasurer City of Bremerton 239 4th Street Bremerton, WA 98310 RE: $500,000 Limited Tax General Obligation Note Line of Credit Dear Rich: Thank you for thinking of Bank of America ("Bank") to meet the City's financing needs. We are pleased to provide this proposal for a Bond Anticipation Note Line of Credit for the City of Bremerton ("City"). This letter is a proposal only and does not commit us to offer credit under these or any other terms or conditions. Please keep the contents of this letter confidential. Proposed rates and terms are as follows: Borrower: City of Bremerton Proposed Form: Tax Exempt, Bank Qualified Limited Tax General Obligation, Bond Anticipation Note Line of Credit Amount: $500,000 Proposed Term: Three years. February 1, 2002 to January 31, 2005 Repayment: Interest due annually, principal due at maturity. Fees: $500 loan fee, due at closing. Legal Counsel: City is responsible for payment of bond counsel fees. Variable Rate: 63% of Prime Rate, changing on the day of any Prime Rate change. Current Prime Rate is 5.0%, resulting in a rate to the City of 3.15%. Rate is calculated on an actual/365 day basis. Balances may be prepaid at any time, with no prepayment fee. USA ~ Telephone (206) 358-8175 Telefax (206) 358-8818 City of Bremerton December 11, 2001 Draw Requests: Requests for advance can be made on the day requested, provided Bank is notified by 12:00 noon. This financing is subject to final credit approval, receipt and review of the following: 1. A legal opinion from City's bond counsel stating the indebtedness is legal and valid, and the interest income is tax-exempt to Bank and is designated as "bank qualified'" 2. A copy of the Ordinance passed by the City Council authorizing the issuance of debt 3. Receipt of the registered bond at closing; 4. A copy of the IRS form evidencing the interest income as tax-exempt to Bank; 5. Documentation is subject to review by Bank counsel. Again, this letter is a proposal for discussion purposes only and does not constitute a commitment. Any commitment is subject to receipt and further evaluation of the borrower's financial information, credit history, and such other information as may be requested by the Bank. If credit is subsequently committed by the Bank, some terms, conditions and covenants may be different from or in addition to those that are stated in this letter. Rich, I look forward to hearing from you. I am available to answer any questions you or anyone else working on this financing may have. Sincerely, /Ken-in M.~ibbons cc: Judy Andrews, Gottlieb, Fisher & Andrews ORAL AGREEMENTS OR ORAL COMMITMENTS TO LOAN MONEY, TO EXTEND CREDIT, OR TO FORBEAR FROM ENFORCING REPAYMENT OF A DEBT ARE NOT ENFORCEABLE UNDER WASHINGTON LAW. Telephone (206) 358-8175 Telefax (206) 358-8818 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 a limited tax general obligation bond, 2002, in a principal amount not to exceed $500,000 to establish a revolving line of credit to finance costs relating to the enforcement of Ordinance No. 4418 and chapter 35.80 RCW concerning the abatement of unfit dwellings, buildings, structures and premises; providing for the date, form, terms, registration privileges, maturity, interest rate and covenants of the bond; establishing a debt service account for the bond; and providing for the delivery of such bond to Bank of America, N.A., Seattle, Washington, in exchange for such line of credit. WHEREAS, the City of Bremerton, Washington (the "City") has enacted Ordinance No. 4418 providing for the repair and abatement of unfit dwellings, buildings, structures and premises pursuant to chapter 35.80 RCW; and WHEREAS, RCW 39.46.050 authorizes local governments to establish lines of credit with any qualified public depository to be drawn upon in exchange for its obligations; and WHEREAS, the City deems it necessary and advisable that that the City incur indebtedness and issue its limited tax general obligation bond in a principal amount not to exceed $500,000 to establish a revolving line of credit to finance costs relating to the enforcement of Ordinance No. 4418 and chapter 35.80 RCW concerning the abatement of unfit dwellings, buildings, structures and premises; and WHEREAS, the incurrence of indebtedness by the City will not cause the total indebtedness of the City to be incurred without the assent of the voters of the City to exceed the limitations set forth in Chapter 39.36 RCW, and WHEREAS, Bank of America, N.A. (the "Bank") has submitted a commitment letter to establish a revolving line of credit on the terms and conditions set forth herein in exchange for the bond; and WHEREAS, the City Council deems it in the best interests of the City to accept such offer, to deliver the bond to the Bank and to establish such line of credit; now therefore, THE CITY OF BREMERTON DOES ORDAIN AS FOLLOWS: Section 1. Definitions. As used in this ordinance, the following terms shall have the following meanings: "Bank" means Bank of America, N.A. "Bond" means the "City of Bremerton, Washington, Limited Tax General Obligation Bond, 2002" authorized by this ordinance. "Bond Account" means the Limited Tax General Obligation Bond Account, 2002 created in the Repair and Demolition Revolving Fund in this ordinance. "Bond Register" means the registration books for the Bond maintained by the City. "City" means the City of Bremerton, Washington. "Code" means the Internal Revenue Code of 1986, as amended, together with all applicable regulations thereunder. "Draw Request" means the written request by any person authorized to make a draw from the Line of Credit, as more fully described in Section 4 of this ordinance. "Line of Credit" means the line of credit authorized by this ordinance to be established with the Bank. "Outstanding Principal Balance of the Bond" means the aggregate of all funds that the City has drawn from the Line of Credit pursuant to the Bond less the aggregate of all principal payments on the Bond made by the City. "Owner" means the person who is named as the registered owner of the Bond on the Bond Register. "Repair and Demolition Revolving Fund" means the special revenue fund created by the City by Ordinance No. 4388 for purposes of paying costs and expenses incurred by the City in doing or causing to be done the necessary work of repair or demolition of dangerous buildings and/or conditions. Section 2. Finding, Purpose and Description of Bond. The City authorizes the sale and issuance of its "Limited Tax General Obligation Bond, 2002" (the "Bond"), to establish a revolving line of credit to finance costs relating to the enforcement of Ordinance No. 4418 and chapter 35.80 RCW concerning the abatement of unfit dwellings, buildings, structures and premises (the "Projects") and to pay the "incidental costs and costs related to the sale and issuance" (as defined in RCW 39.46.070) of the Bond. The Bond shall be issued as a single bond in the principal amount not exceeding $500,000 at any time; shall be dated the date of the first Draw Request thereunder; shall be 2 issued in fully registered form as to both principal and interest; and shall be numbered in such manner and with any additional designation as the City deems necessary for purposes of identification. The Bond shall mature on January 31, 2005, unless the maturity date is extended as follows: the term of the Bond shall be automatically and conclusively extended for an additional year unless the Bank notifies the City Treasurer in writing at least 60 days prior to the maturity date of the Bond of its intention not to extend the term of the Line of Credit for an additional year. Upon such extension, no other terms or conditions of the Bond, except its maturity date, shall be changed. The Bond shall bear interest on the Outstanding Principal Balance of the Bond at the variable rate of an amount equal to sixty-three percent (63%) of the Bank's Prime Rate (computed on the basis of a 365/366-day year), for the actual number of days the Outstanding Principal Balance is Outstanding. The rate will be changed on the day on which an announcement is made by the Bank ora change in the Prime Rate. Interest on the Bond shall be payable on January 31, 2003, annually on each January 31 thereafter, and on the date of maturity. At any time and without notice, principal may be prepaid, in whole or in part, with or without the interest accrued thereon, without fee, and such principal amount prepaid shall then be available to be drawn again under the Line of Credit until the maturity date of the Bond. The Outstanding Principal Balance of the Bond, together with all interest accrued and unpaid thereon, shall be payable upon maturity of the Bond. Section 3. Place, Manner and Medium of Payment. Both principal of and interest on the Bond shall be payable by the City in lawful money of the United States of America. Interest on the Bond and any prepaid principal thereof shall, if requested by the Owner, be paid by electronic debit by the Owner from a deposit account maintained by the City with the Owner, and otherwise, shall be paid by check or draft mailed on or before the applicable payment date to the Owner at the address for such Owner appearing on the Bond Register on the day such payment is made. The Outstanding Principal Balance of the Bond, together with all interest accrued thereon, shall be paid at maturity or prior prepayment to the Owner at the address for such Owner appearing on the Bond Register on the day such payment is made. Upon request of the City following receipt of payment, the Owner shall surrender of the Bond at the office of the City. The City shall keep sufficient books for the registration of the Bond. The Outstanding Principal Balance of the Bond on any particular day shall be the aggregate of all funds that the City has drawn from the Line of Credit from the date of the Bond to that day less the aggregate of all principal payments made by the City on or before that day. Interest on a particular principal amount so advanced shall be determined from the date of the advance of Bond proceeds pursuant to a Draw Request. Section 4. Draw Requests. The City may make multiple Draw Requests under the Line of Credit for the purpose of obtaining funds to pay the costs of the Projects and to pay the incidental costs and costs related to the sale and issuance of the Bond. The Draw Requests may be made on any business day prior to the maturity date of the Bond; provided, that the first Draw Request shall be accompanied by the Bond and the other documents described in Section 12 3 hereof. Draw Requests are not subject to approval by the Bank, but shall be limited to an aggregate outstanding principal amount of $500,000 at any one time. No Draw Request may exceed the total Projects Costs and issuance costs to be paid from the proceeds of such Draw Request, and such proceeds shall be immediately applied to pay such costs. Amounts drawn pursuant to Draw Requests shall be recorded in such form as the City and the Bank shall agree. The City Treasurer or such other person as the City Treasurer may designate, are hereby authorized to make a request for draw pursuant to the Bond. A Draw Request shall be made in writing signed by any one of such authorized persons at any time prior to the maturity date of the Bond. Section 5. Debt Limit Not Exceeded. The City finds and covenants that the Bond is issued within all constitutional and statutory debt limitations presently applicable to the City. Section 6. Pledge of Full Faith, Credit and Resources. The Bond is a limited tax general obligation of the City. Unless the principal of and interest on the Bond is paid from other sources, so long as the Bond is outstanding, the City hereby irrevocably covenants to make annual levies of taxes upon all property within the City subject to taxation without a vote in amounts sufficient, together with any other money legally available therefor, to pay such principal and interest 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. The City hereby irrevocably covenants that the annual tax provided for herein to be levied for the payment of the principal of and interest on the Bond shall be within and as a part of the tax levy permitted the City without a vote and that a sufficient portion of each such annual tax levy to be made so long as the Bond is outstanding, together with any other money legally available therefor, will be and is hereby set aside, pledged and appropriated for the payment of the principal of and interest on the Bond as the same shall become due. Section 7. Form of Bond. The Bond shall be typewritten, printed or lithographed on good bond paper in a form consistent with this ordinance and Washington law. Section 8. Execution of Bond. The Bond 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 of such seal imprinted on the Bond. In case either or both of the officers who shall have executed the 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. The Bond also may be signed and attested on behalf of the City by such persons as at the actual date of execution of the Bond shall be the proper officers of the City although at the original date 4 of the Bond such persons were not such officers of the City. Section 9. Registration; Nontransferability. The City shall keep, or cause to be kept, at the City Treasurer's office, the Bond Register. The City may deem and treat the Owner of the Bond as the absolute owner thereof for all purposes, and the City shall not be affected by any notice to the contrary. Payment of the Bond shall be made only as described in Section 3 hereof. All such payments made as provided in Section 3 hereof shall be valid and shall satisfy and discharge the liability of the City upon the Bond to the extent of the amount or amounts so paid. The City covenants that, until the Bond shall have been surrendered and cancelled, it will maintain a system of recording the ownership of the Bond that complies with the provisions of the Code. The registered ownership of the Bond may not be transferred, except for transfer to a successor in interest to the Owner as a result of merger or consolidation. Section 10. Mutilated, Lost, Stolen or Destroyed Bond. If the Bond becomes mutilated, lost, stolen or destroyed, the City may authenticate and deliver a new Bond of the same maturity and interest rate and of like tenor and effect in substitution for such mutilated, lost, stolen or destroyed Bond, 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 of the original Bond. However, no such substitution or payment shall be made unless and until the applicant shall furnish (a) evidence satisfactory to the City of the destruction or loss of the original Bond and of the ownership of such original Bond, 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 City for their respective expenses in the furnishing of such substitute Bond. Any such substitute Bond so furnished shall be equally and proportionately entitled to the security of this ordinance with any other Bond issued under this ordinance. Section 11. Defeasance. If money and/or "government obligations" (as such obligations are defined in Chapter 39.53 RCW, as now in existence or later amended) maturing at such times(s) and bearing such interest to be earned on such obligations (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 all of the principal of and interest on all or a portion of the Bond, when due in accordance with its 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 Bond, 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 Bond shall no longer be deemed to be outstanding under this ordinance. Section 12. Sale of the Bond. The Bank has offered to establish the Line of Credit in exchange for the Bond under the terms and conditions provided in its line of credit commitment letter (the "Commitment Letter"), a copy of which is attached hereto, and is incorporated herein by this reference. The City Council finds that accepting the Commitment Letter is in the City's best interest and therefor accepts the offer contained in the Commitment Letter and authorizes the execution of the Commitment Letter by City officials, including the City Treasurer, in evidence thereof. The Bond will be prepared at City expense and will be delivered to the Bank on the date of the first Draw Request in accordance with the Commitment Letter, together with: (a) the approving legal opinion of Gottlieb, Fisher & Andrews, PLLC, bond counsel, of Seattle, Washington, (b) a copy of this Ordinance, (c) a Tax Exemption and Nonarbitrage Certificate and a Closing Certificate of the City, and (d) a copy of the executed IRS form 8038G with respect to the Bond. 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 Bond. The proper City officials, including the City Treasurer, are authorized and directed to do everything necessary for the prompt issuance, execution and delivery of the Bond to the Bank in accordance with the Commitment Letter, and for the proper application and use of the proceeds of the sale thereof. Section 13. Delivery of Bond. The proper City officials are authorized and directed to execute and/or approve, as appropriate, all documents, and to do everything necessary for the preparation and delivery of a transcript of proceedings pertaining to the Bond, and the preparation, execution and prompt delivery of the Bond to the Bank and for the proper application and use of the proceeds of the sale thereof. Section 14. Establishment of Bond Account; Application of Bond Proceeds. There is hereby created and established in the office of the City Treasurer a special account to be designated as the "Limited Tax General Obligation Bond Account, 2002" (the '~Bond Account") in the Repair and Demolition Revolving Fund. The money and investments in the Bond Account shall be used by the City, together with any other money legally available and designated therefor, to pay the principal of and interest on the Bond, when due. Net principal proceeds of the Bond shall be deposited, upon receipt, in the Repair and Demolition Revolving Fund, and shall be applied solely to pay part of the costs of the Projects and the incidental costs and the costs of issuance of the Bond. Except as provided by the Code and Section 15 of this ordinance, the interest and profits 6 derived from the investment of Bond proceeds deposited into the Repair and Demolition Revolving Fund shall be deposited in the Repair and Demolition Revolving Fund and applied as described in the preceding paragraphs. Except as provided by the Code and Section 15 of this ordinance, if any money allocable to the Bond proceeds in the Repair and Demolition Revolving Fund remains in such fund the after payment of all the costs of the Projects or after termination of the Projects by the City, such money shall be transferred to the Bond Account. Pending application as described in this Section 14 and subject to the requirements of the Code and Section 15 of this ordinance, money in the Repair and Demolition Revolving Fund may be temporarily deposited in such institutions or invested in such investments as may be lawful for the investment of City funds. Section 15. Tax-Exemption Covenants. 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 Bond 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 Bond 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 Bond or of its other money at any time during the term of the Bond which would cause the Bond to be an "arbitrage bond" within the meaning of section 148 of the Code. The City further covenants that, if the City issues more than $5 million in tax-exempt bonds in the calendar year 2002, the City shall calculate or cause to be calculated, and shall rebate to the United States, all earnings from the investment of Bond proceeds that are in excess of the amount that would have been earned had the yield on such investments been equal to the yield on the Bond, plus income derived from such excess earnings, to the extent and in the manner required by section 148 of the Code. 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. The City will take no actions and will make no use of the proceeds of the Bond or any other funds held under this ordinance which would cause the Bond to be treated as 'a "private activity bond" (as defined in section 141(b) of the Code) subject to treatment under said section 141(b) as an obligation not described in section 103(a) of the Code, unless the tax exemption thereof is not affected. The City covenants that it will not issue more than $10,000,000 of"qualified tax-exempt obligations," as defined in Section 265 of the Code (relating to the partial interest expense deduction authorized for banks, thrift institutions and certain other financial institutions) during calendar year 2002. The City hereby designates the Bond as a "qualified tax-exempt obligation" for such purposes and authorizes and directs the proper City officials to execute and deliver all documents necessary to evidence such designation to any and all interested parties. Section 16. Contract; Severability. The covenants contained in this ordinance shall constitute a contract between the City and the Owner of the Bond. The City unconditionally covenants that it will keep and perform all of the covenants of the Bond and this ordinance. If any one or more of the provisions of this ordinance shall be declared unconstitutional or invalid for any reason, such decision shall not affect the validity of the remaining provisions of this ordinance or the Bond, and this ordinance and the Bond shall be construed and enforced as if such unconstitutional or invalid provision had not been contained in this ordinance. Section 17. 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 January, 2002. PASSED by the City Council of the City of Bremerton, Washington, this __ day of January, 2002. , Council President APPROVED this __ day of January, 2002. ., Mayor ATTEST: Kathleen McCluskey, City Clerk APPROVED AS TO FORM: By. Judith Andrews, Bond Counsel PUBLISHED: EFFECTIVE DATE: ORDINANCE NO. 9 AGENDA BILL BREMERTON CITY COUNCIL 1. SUBJECT: RESOLUTION NO. ,~ c~ :*~ J FOR AGENDA OF: 01/22/02 ~'~ AUTHORIZING AN INTERFUND LOAN FROM THE ORIGINATING DEPT: T~~ EQUIPMENT RENTAL FUND TO THE CONVENTION ORIGINATOR: R. H,a~l~a~ CENTER FUND AND RELATED BUDGET ADJUSTMENT. DATE SUBMITTED: Jan. 8;'2002 2. CLEARANCES: Comment of bac~f necessary) 3. EXHIBITS: Attorney ~,,/~~~ Proposed Resolution Dir. Admin. Serv./~(~4~..~_.~ Budget Adjustment Request 2002 #1 Fiscal & Budget ~,,~, ~' ~' I '~/ · Operations ~ _.... E N DORS~N__~.~)~N APPROVED BY COUNCIL PRESIDENT FOR SUBMITTAL: MAYOR ~ ~ - COUNCIL PRESIDENT 4. SUMMARY STATEMENT AND REQUIREMENT FOR COUNCIL ACTION: The proposed resolution will provide interim funding for the initial work on the Convention Center and related improvements. The borrowing authority will be used on an "as needed basis" and will be dependent on the timing of the project. The proposed budget adjustment will provide expenditure authority necessary to issue the loan and for the use of loan proceeds on the convention center project. 8. RECOMMENDATION: 1. Motion tO approve Resolution No. ,:~ authorizing the inter-fund loan from the Equipment Rental Fund to the Convention Center Fund. 2. Motion to approve Budget Adjustment 2002 #1. 9. RESPONSIBLE OFFICIAL: Treasurer ENFORCEMENT OFFICIAL: Mayor EXPIRATION DATE: 06/30/2003 REVIEW DATE: N/A 10. NOTICE OF ACTION COUNcILPULLED DIRECTIvE:TABLED APPROVED DISAPPROVED AMENDEDi~ A 11. AGENDA BILL NO: /~. ~! - L i 7 2. CLEARANCE COMMENTS: 5. IMPACT ON NON-PASSAGE: The City will lack working capital and expenditure authority with which to begin the convention center project. 6. IMPACT ON STAFFING~ BUDGETS~ FACILITIES~ EQUIPMENT OR OTHER RESOURCES: Increases current year expenditure authority for the project with loan payments to be made in future years, 7. RESEARCH SOURCES: Staff analysis. RESOLUTION NO..~ ~ ,.~ ] A RESOLUTION authorizing an Inter-fund Loan to the Convention Center Fund from the Equipment Rental Reserve Fund. WHEREAS, the Convention Center Fund has an immediate need for cash with which to provide interim financing for costs associated with the beginning of design, construction and acquisition of the convention center and related facilities; and WHEREAS, the size and nature of this transaction does not lend itself to an external financing at this time; and WHEREAS, surplus cash in an amount sufficient to meet the needs of this project is presently on hand in the Equipment Rental Reserve Fund; NOW, THEREFORE, let it be resolved, that the City Treasurer is hereby authorized and directed to make an inter-fund loan from the Equipment Rental Reserve Fund to the Convention Center Fund in an amount not to exceed $500,000. This loan shall bear interest at the rate of 4.5% per annum and shall be repaid in its entirety not later than June 30, 2003. ADOPTED by the City Council of the City of Bremerton this day of 2002. CAROL ARENDS, Council President CITY OF BREMERTON BUDGET ADJUSTMENT REQUEST Requesting Department: CONVENTION CENTER FUND Adjustment Number: 2002 #1 EQUIPMENT RENTAL RESERVE FUND Approval Authority Required: ~Treasurer ~--~Mayor ~--~ Fiscal & Budget ~'~Council SOURCE OF FUNDS: USE OF FUNDS: Description Amount Description Amount Convention Center Fund: Increase Inter-Fund Loan 500,000 Increase Capital 500,000 Equipment Rental Reserve Fund: Decrease Ending Cash 500,000 Increase Inter-Fund Loan 500,000 NARRATIVE: This adjustment will provide expenditure authority for an inter-fund loan from the Equipment Rental Reserve to the Convention Center Fund providing interim financing for the initial part of the project. The adjustment also provides expenditure authority to begin work on the convention center project. It is anticipated that this initial financing of the project will later be replaced by external construction financing and ultimately by permanent bond financing. Department Head Signature Date Director Signature Date Treasurer Comments: ~ Recommended I--'---I Not Recommended !~e~///~ Treasurer's Signature~ Mayor Comments: r-~ Recommended ~ Not Recommended ~ Approved ~ Denied Mayor's Signature Date Fiscal & Budget Committee Comments: [-'--"] Recommended ~ Not Recommended ~ Approved ~ Denied Fiscal & Budget Committee Signature Date