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HomeMy WebLinkAbout01/30/02 AGENDA CITY COUNCIL MEETING AGENDA JANUARY 30, 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 22, 2002 (#AB02-018) 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. Confirmation of Mayor's Appointment of Interim Hearing Examiner and Professional Services Contract (#AB02-019) B. Budget Adjustment No. 2002-01 Authorizing an Interfund Loan from the Equipment Rental Fund to the ~Center Fund (#AB02-020) ~o,~ ¢,~,~ 11. PUBLIC HEARINGS AND ORDINANCES A. Ordinance No. 4789 (Second Reading) Establishing a Center Fund (#AB02-015) B. Ordinance No. 4790 (Second Reading) Authorizing the Line of Credit Note; and accepting proposal of Bank of America (#AB02-016) 12. ADJOURNMENT OF MEETING AGENDA BILL BREMERTON CITY COUNCIL 1. SUBJECT: FORAGENDA OF: JANUARY 30, 2002 ORIGINATING DEPT: CITY COUNCIL MINUTES OF MEETING- JANUARY 22, 2002 TUESDAY ORIGINATOR: CAROL ARENDS, PRESIDENT DATE SUBMITTED: JANUARY 23, 2002 2. CLEARANCES: (Cmrmaent on back if necessary) 3. EXHIBITS: ENDORSEMENT [~ INFORMATION ~-] APPROVED FOR SUBMITTAL BY COUNCIL PRESIDENT: ~ MAYOR: ~ ~_~.~'/j/ 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: 3^ 8. AGENDA BILL NO.: 9. IMPACT OF NON-PASSAGE: 10..IMPACT ON STAFFING, BUDGETS, FACILITIES, EQUIPMENT OR OTHER RESOURCES: 11. RESEARCH SOURCES: TAPE #1816 UNAPPROVED DRAFT CITY COUNCIL MEETING MINUTES Tuesday - January 22, 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, Tuesday, January 22, 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 Reverend William Wambsganss of West Side Baptist Church. President Arends made the following announcements: (1) Council held an Executive Session in the Council Conference Room to discuss a "REVIEW OF PERSONNEL PERFORMANCE" from 4:40 to 5:00 P.M.; followed by the regular Pre-Council Session to discuss general Council business. CONSENT AGENDA A. Minutes of Meeting - January 16, 2002 (#AB02-012) #0030 MISIClU (McConnell/Short) 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. #0050 M/S/C/U (Younger/McConnell) On January 22, 2002, the Council does approve for payment those vouchers included and further described as follows: Check numbers 267519 through 267633 in the amount of $421,844.20; and Regular Payroll in the amount of $904,821.66 for the period ending January 15, 2002. COUNCIL MEMBER REPORTS Cecil McConnell noted that this was the last meeting for Interim City Attorney Loren Combs. He thanked him for his service to the City for the past two months and wished him "God's speed". Daren Nygren thanked Hoight Burrows of the Bremerton Food Bank for showing him around the facility, and thanked local business owners for supporting the Food Bank, which serve over 700 families per month. He also invited citizens to attend his first District #3 Neighborhood meeting tonight from 7:00 to 8:30 P.M. at the Senior Center located at East 13th & Nipsic for a presentation by the League of Women Voters on proposed "Kitsap County Charter Amendments". Ed RoIIman was honored to be among all the citizens who displayed American flags to welcome home the USS SACRAMENTO on Monday; thanked all the Service men and women who bravely did their job fighting terrorism; encouraged citizens to welcome the USS CARL VINSON that was due to arrive in Bremerton around 1:00 P.M., Wednesday, January 23, 2002; and lastly, he too thanked Loren Combs for the quality of legal representation he provided the City for the past several months. Mike Shepherd reported that the "Pennsylvania Neighborhood Group" has been formed to discuss the City Nuisance Ordinance; and reminded citizens that they could purchase Valentine's Day items right here in Bremerton. TAPE #1816 City Council Reg. Mtg. Minutes Tuesday, January 22, 2002 Page 2 of 5 Will Maupin expressed his appreciation for the work performed by Interim City Attorney Loren Combs whom he described as "very professional" and "fun to work with". Mike Short thanked Puget Sound Naval Shipyard Commander, Capt. Bryant; Steve Anderson, Executive Director of Puget Sound Naval Shipyard; and Capt. Kramer of Naval Station Bremerton for the hospitality provided to the Mayor and Council during a briefing and luncheon earlier today. He also provided brief reports on the Town Meeting sponsored by Congressman Dicks that he attended on Monday, January 22; and the PFD meeting he attended on Thursday, January 17. Carol Arends discussed her attendance at the Bremerton Area Chamber of Commerce Luncheon on Thursday, January 17 with special guest Congressman Jay Inslee; and announced the AWC Legislative Action Conference would be held next week, providing an additional opportunity to meet with our local Legislators. Additionally, she reiterated the information regarding the arrival of the USS CARL VINSON. COUNCIL COMMITTEE REPORTS Cecil McConnell reported on his attendance at the final SR303 Stakeholders meeting, where Alternative #13 was chosen as the preferred alternative route. This selection will now be presented to the Final Selection Committee. Mike Shepherd reported on recent issues dealt with at recent meetings of the Salmon Negotiating Committee, such as the encouragement of "simple actions" that we can take right now to aid in the recovery of salmon and to be in compliance with the Endangered Species Act Recovery Plan. MAYOR'S REPORT Mayor Bozeman provided reports on the following topics: · The tour of PSNS today with members of the City Council; · The anticipated arrival of the USS CARL VINSON to Bremerton tomorrow at approx. 1:00 P.M.; · His attendance at the 8th Annual Martin Luther King Celebration at the Kitsap Pavilion; · The PFD meeting to discuss the Interlocal Agreement for the Hotel & Conference Center; · A suggestion for the development of a Project Design Team for the Maritime Park project; · His invoIvementwith recent Police Negotiations; · The hiring of an interim Hearings Examiner after approval by the Council next week; · An update on the proposed City Government Center; An update on the "Bringing Back Downtown" project implemented to spruce up downtown; · The selection of Bremerton as the 6th best City in the Nation for water quality; and · The attempts to alleviate the problem of abandoned automobiles within the City. LEGISLATIVE REPORT - There was no report this week PUBLIC RECOGNITION Helen Miller thanked Loren Combs for bringing a "higher level of professionalism" to the City. Bill & Natasha Sesko expressed their displeasure with the contractors hired by the City to clean up their property, whom they feel went too far in removing items they decided were "junk", but were actually personal items still in use by the Sesko family. They called for more "cooperation by the City". Loren Combs, Interim City Attorney, explained that because the City was unable to get the Property owners to clean up the property on their own, the City was forced to litigate to be allowed to get it cleaned up. The City was in litigation for many years, and spent thousands of dollars, and TAPE #1816 City Council Reg. Mtg. Minutes Tuesday, January 22, 2002 Page 3 of 5 ultimately prevailed in the litigation to have this property cleaned up. He continued to state that there was now a Court Order mandating the clean up of this property. The City now has entered into a contract with a professional firm to perform the clean up work. He established that this issue was now a "contract administration issue", and no longer a "legislative issue", and all further communication would need to take place with the Project Manager, and not the Council or the City. DOn L. arson encouraged the City to purchase 100 trees at the next Tree Sale sponsored by the Kitsap Conservation District on January 25 for use on Montgomery Avenue. He also showed pictures of what other cities are doing to improve their waterfront, and suggested that Bremerton could also take similar action. Mrs. Arend$ pointed out that most of the information he provides to Council would be better utilized by the Mayor's office; and Mr. Maupin further recommended that Mr. Larson discuss his ideas at upcoming Smart Growth meetings, which he was invited to attend; or at future Comprehensive Plan neighborhood meetings. 10A - CHANGE ORDER NO. 2 FOR EVERGREEN PARK PHASE I! CONSTRUCTION (#AB02- 013): Becky Lorber, Recreation Manager, stated that this Change Order includes 7 items for the overall reduction cost of $75,844.12 plus sales tax. The items include the following: 1 ) Removal of Alternate A, Lighting to Phase [ ($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 inch PRV on irrigation 450.00 5) Add handicapped curb cut into Phase [ 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) There were no comments from the public. #1530 M/S/C/U (Shepherd/Rollman) Move that City Council authorize and direct the Mayor to approve Change Order No. 2, and adjust Glacier Environmental Services, Inc. contract by the amount of $75,844.12, not including sales tax, subject to City Administrative Policies and Procedures. 10B - CONTRACT FOR CUSTOMER SERVICES WITH PUGET SOUND ENERGY (#AB02-014): Rich Hanna, City Treasurer, summarized that the City has contracted the printing and mailing of utility bills for a number for years with good results. The proposed contract will continue this practice with a new vendor and will expand the contracted functions to include the processing of customer payments. Due to the advantages of economies of scale and of advanced technology, the work can be accomplished more quickly and economically through the proposed contract that by City staff. There were no comments from the public. Mr. McConnell asked for reassurance that a customer's private information would not be made available to telemarketers. Mr. Hanna assured the Council that information would only be provided in certain circumstances as prescribed by law, such as when a subpoena is received. Mr. Rollman requested a 6-month update report. Mr. Combs established that this direction by the Council was sufficient, and no change in the motion or any additions to the contract were required. TAPE #1816 City Council Reg. Mtg. Minutes Tuesday, January 22, 2002 Page 4 of 5 Mr. Hanna stated that he would certainly be able to provide a staff report at the end of 6-months to update the status of this contract. #1780 MISIC/U (Short/Maupin) Move to approve the contract for customer care services and authorize the Mayor to execute the same. Council member Daren Nygren left the meeting at approximately 6:25 P.M. to host his first District 3 Neighborhood Meeting. He did not vote on the remaining three items... 11A- PUBLIC HEARING AND ORDINANCE (FIRST READING) ESTABLISHING A CONVENTION CENTER FUND (#AB02-015): Rich Hanna, City Treasurer, pointed out that 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. There were no comments from the public. Roy M¢lnnis commented that he hoped this project would avoid some of the problems experienced with previous projects. #1940 MISIC/U (Shepherd/Maupin) Move to approve on first reading the ordinance creating the Convention Center Fund. 11B - PUBLIC HEARING AND ORDINANCE (FIRST READING) AUTHORIZING THE ISSUE OF A CREDIT LINE WITH BANK OF AMERICA (#AB02-016): Rich Hanna, City Treasurer, said that this ordinance will authorize a Limited Tax General Obligation note which will be issued to secure a line of credit with the Bank of America. 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. There were no comments from the public. #2215 M/S/C/U (Short/Rollman) Move to approve on first reading the ordinance authorizing the bond issue and accepting the offer of Bank of America. 12A- RESOLUTION NO. 2851, AUTHORIZING AN INTERFUND LOAN FROM EQUIPMENT RENTAL FUND TO THE CONVENTION CENTER FUND;...._A~'n ...AD'~^~...-- ...-- ~c_. ___~_.,~ ~n~_,"'r .~.DJ'JSTMENT NO. 2002-!. (#AB02-017): Rich Hanna, City Treasurer, affirmed that Resolution No. 2851 would 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. There were no comments from the public. Mr. Shepherd, Mr. Maupin and Mr. Short all offered additional comments, endorsing this project, but acknowledging there must be adequate control over expenditures, without slowing down the process. TAPE #1816 City Council Reg. Mtg. Minutes Tuesday, January 22, 2002 Page 5 of 5 Mr. Younger clarified for the sake of the public, that although this action would authorize $500,000.00 to be "set aside" from the new Equipment Reserve Rental Fund for the Mayor and staff to draw upon use on the Convention Center project, the Council would still have to approve any authorizations over $20,000.00. Mr. Hanna affirmed that statement, and added that the Council will be briefed as the project progresses. #26§0 M/S/C/U (Shepherd/Maupin) Move to adopt Resolution No. 2851 authorizing the inter-fund loan form the Equipment Rental Fund to the Convention Center Fund. Loren Combs advised the Council to defer the Approval of Budget Adjustment No. 2002-1 and the corresponding Motion until the next Council meeting, until the fund officially exists. He established that there could not be an amendment to a fund that does not yet exist. Appreciation was expressed by the entire Council for the service that has been provided by Interim City Attorney Loren Combs for the last several months. I~r. Coml3s thanked the Council for their applause, and extended the same sentiments to the City Directors, staff, Council, and Mayor, and further commented that he appreciated the opportunity to work with them. With no further business, the Council meeting was adjourned at 6:51 P.M. 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 1. SUBJECT: Confirmation of Mayor's appointment FOR AGENDA OF: JanuaryS, 2002 of interim Hearing Examiner and ORIGINATING DEPT: Community Developmen} professional services contract. ORIGINATOR: Chris Hugo, Director_(~. ~ DATE SUBMITTED: Jan. il~, 2002 2. CLEARANCES: (comment on back 3. EXHIBITS: Proposed professional services contract if necessary) Admin Services Treasurer HR Manager Legal Fiscal/Budget Operations APPROV~R S~'~' 4. SUMMARY STATEMENT AND REQUIREMENT FOR COUNCIL ACTION: The City Council adopted an Administrative Hearing Examiner system by Ordinance No. 4778 on Oct. 29, 2001. The ordinance specifies the appointment of the Hearing Examiner by the Mayor, subject to confirmation by the City Council. There are several applications for development that are pending hearing and decision as specified under the new hearing examiner system. This appointment and contract provide hearing examiner services on an interim basis until the Mayor has the opportunity to conduct a formal selection procedure for a permanent Examiner. (cont. on next pg.) 8. RECOMMENDATION: Motion: To approve the Mayor's appointment of Robin Baker as Administrative Hearing Examiner under the terms of the proposed contract. 9. RESPONSIBLE OFFICIAL: Director of Planning and Building ENFORCEMENT OFFICIAL: Director of Planning and Building EXPIRATION DATE: REVIEW DATE: 10. NOTICE OF ACTION PULLED_ TABLED_ APPROVED_ DISAPPROVED AMENDED COUNCIL DIRECTIVE: DATE: 11. AGENDA BILL NO: 0 2. CLEARANCE COMMENTS (cont.): 4. SUMMARY STATEMENT (cont.): The Mayor's interim appointee is Robin Baker who is currently providing similar services to the City of Bainbridge Island. Ms. Baker's contract includes a provision for termination of services that will be executed when the Council confirms the appointment of a permanent Examiner. 5. IMPACT ON NON-PASSAGE: The City would not be able to perform land use procedures as enacted by Ordinance No. 4778. Applications for development approvals that require quasi-judicial proceedings could not be acted upon. The City would face potential violations of individuals due process and property rights. 6. IMPACT ON STAFFING, BUDGETS, FACILITIES, EQUIPMENT OR OTHER RESOURCES None. This contract was anticipated with the adoption of the 2002 portion of the biennial budget. 7. RESEARCH SOURCES PROFESSIONAL SERVICES CONTRACT FOR LAND USE HEARING EXAMINER THIS AGREEMENT is entered into on the __ day of January, 2002 by and between The City of Bremerton, a municipal corporation under the laws of the State of Washington ("City"), and Robin Thomas Baker, residing at 7092 NE Bayhill, Bainbridge Island WA 98110 ("Hearing Examiner"). RECITALS A. It is in the best interest of the City and its citizens to provide a land use regulatory hearing system to fairly implement land use regulations. B. The Heating Examiner is an attorney licensed to practice law in the State of Washington since 1973 and has extensive experience providing hearing examiner services. C. The City has an immediate need for a heating examiner to serve until such time as the City completes a more formal RFP process. Upon due investigation, the City finds that the Hearing Examiner is qualified to perform the tasks contemplated by the City pursuant to the terms of this Agreement. AGREEMENT Accordingly, the City and Hearing Examiner hereby contract for the performance of services by the Hearing Examiner upon the terms hereinafter provided: 1. Duties. The duties of the Heating Examiner shall be as follows: (a) To conduct land use hearings for the City and, in connection therewith: (i) to review materials provided by the City Planning Staff prior to each hearing; (ii) to research legal issues anticipated at the hearing; (iii) to hold pre-hearing conferences, as determined by the Heating Examiner; (iv) to conduct and supervise hearings and to receive testimony under oaths administered by the Hearing Examiner; (v) to advise persons in attendance at hearings of the purposes and procedures pertaining to the City's land use regulatory hearing system; (vi) to receive testimony and evidence at public hearings; (vii) to create a clear and understandable record of the proceedings in connection with each hearing; and (viii) to render decisions with respect to hearings, including post-hearing motions and related proceedings; (b) To draft Findings of Fact and Conclusions of Law in support of decisions or recommendations by the Heating Examiner in each case; ofl\530a 1© (c) If directed by the City, draft and periodically update rules of procedure for the Hearing Examiner upon the request and with the assistance of authorized representatives of the City; (d) To maintain professional knowledge of land use legislation and applicable court decisions regarding land use and procedural issues in the State of Washington as necessary for the performance of the duties of the Hearing Examiner hereunder; (e) To meet or consult with the City Council, as requested by the City Council, to discuss the Hearing Examiner system and procedures and any recommendations of the Hearing Examiner pertaining to such system and procedures; and (f) To be available for hearings during business hours and evenings, including multi-day hearings. 2. .Clllllge, ns~,ilm The Hearing Examiner shall be compensated at the rate of $125 per hour, including travel time. In addition, the Hearing Examiner shall be compensated at the rate of $20 per hour for the services of an administrative assistant chosen and compensated by the Hearing Examiner. It is understood that such assistant will attend the hearings, prepare the official record of the hearings, and transcribe the Hearing Examiner's decisions and correspondence. Long distance telephone and facsimile charges will be billed as additional costs on the monthly billing invoice. The total compensation for all services provided under this contract shall not exceed $12,000.00 (twelve thousand dollars). 3. ~. The City shall provide a suitable room for the Hearing Examiner to conduct public hearings. The hearing room shall be equipped with taping equipment and a sound system sufficient to record the hearing and to preserve a reviewable record as required by state statutes. Additional equipment for presentation of visual aids at the hearings shall be made available by the City upon request. The hearing room shall have adequate legal access for all persons wishing to attend a public hearing. 4. City, Planning Staff Assistance. The City Planning Staff shall provide a staff report to the Hearing Examiner and all parties to the hearing at least seven (7) days prior to the scheduled hearing date. Such report shall include (a) reviews of the applicable City ordinances, comprehensive plan goals and policies, and relevant state and federal statutes and regulations, and (b) any conditions of approval recommended for the land use action in issue. In addition, the staff shall provide a copy of the official City file and copies of any other department files relevant to the land use action in issue if requested by the Heanng Examiner. 5. Insurance and Hold Harmless. (a) Prior to and during the performance of the work covered by this Agreement, Hearing Examiner shall provide the Risk Manager for the City with evidence that she has obtained and will maintain in full force and effect during the term of this Agreement a policy of professional liability insurance, providing coverage of at least $1,000,000 against professional liability for errors and omissions in connection with the work to be performed under this Agreement. Risk Manager shall be provided thirty (30) days' written notice of any cancellation of said professional liability insurance. (b) Heating Examiner shall, at all times, be solely responsible for her acts or failures to act which occur or arise in any way out of the performance of this Agreement. Hearing Examiner agrees to save and hold the City, its personnel and officials, harmless from all costs, expenses, losses, and damages, including the cost of defense, incurred as a result of any acts or omissions relating to the performance of this Agreement. Provided, that it is understood that the defense and indemnity obligations contained in this paragraph shall not apply to appeals or other challenges of land use decisions rendered by Hearing Examiner in her capacity as Heating Examiner. 6. pnbli¢ Notices. The City shall be responsible for publication and posting of notice for each hearing. The City Planning Staff will provide certificates of publication and posting for the hearing record at least seven (7) working days prior to the scheduled hearing. 7. Official Record. The City shall be the keeper of the official record, including the public heating tapes and the official hearing record and exhibits. 8. Invoices. The Hearing Examiner shall keep an hourly record of services and costs provided to the City and shall provide an invoice of those services and costs to the City on a monthly basis. Payment of the invoice by the City shall be made within thirty (30) days of the date of invoice. 9. Term. The term of this Agreement shall commence on the date first above written and shall continue until terminated upon written notice of termination given by either party to the other. Provided, that it is understood that the Hearing Examiner shall complete findings, conclusions and a decision in a timely manner, and shall be compensated for such work at the contract rate, with respect to all hearings which have been conducted as of the date of any such notice of termination. Furthermore, it is agreed that the Hearing Examiner will conduct or complete hearings that have been scheduled or which are in progress as of the date of any such notice of termination and complete the findings, conclusions and decisions xvith respect to such hearings, at the contract rate, unless requested otherwise by the City. oflX,530a ~ 10. Independent Contractor. As an independent contractor, Hearing Examiner is responsible for payment of all taxes and licensing fees necessary to perform her obligations under this Agreement. Such taxes and fees include, but are not limited to, State industrial insurance, B&O, State professional licensing, and City business licensing. If any taxes or fees due the City have been declared delinquent, the City may withhold the delinquent amount, plus any additional charges arising from the delinquency, from any payments due Hearing Examiner. 11. Entire Agreement. This Agreement contains the entire agreement of the parties. IN WITNESS WHEREOF, the parties hereto have executed this Agreement as of the date first above written. "Heating Examiner" ROBIN THOMAS BAKER SSN 538-42-9655 "City" CITY OF BREMERTON By: Its: ott',.530a ~~- AGENDA BILL  _~ -- --. · BREMERTON CITY CO~UNCIL 1. SUBJECT: F~r-~ULU l lU~ I'~.,. ~'~ ~ ' FOR AGENDA OF: AUTHORIZING AN INTERFUND LOAN FROM THE ORIGINATING DEPT: ' ~~ EQUIPMENT RENTAL FUND TO THE CONVENTION ORIGINATOR: -- ~:.~~R'.H,a~Fr~a~ CENTER FUND AND ,.~.~.~.~.~.~.~.~.~L^,T.~D D'JDCFT .A. DJU~_TMEHT. DATE SUBMITTED: Jan. 8, 2002 2. CLEARANCES: Comment of bac~f necessary) 3. EXHIBITS: Dir. Admin. Serv./~ Budget Adjustment Request 2002 #1 Fiscal & Budget ~- ,~~ Operations~~.~-~/~ _ _ c - COUNClL PRESlDENT 4, SUMMARY STATEMENT AND REQUIREMENT FOR COUNCIL ACTION: The.pr~f~Je~ resolution, will provide interim funding for the initial work on the Convention Center and related improvements. The b'~g'w~ing 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: 2. ~o 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 PULLED__ TABLED__ APPROVED DISAPPROVED AMENDED COUNCIL DIRECTIVE: lO ~ 11. AGENDA BILL NO: ~; ~. - 0~' ~ 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. 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: Desc ri ption 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 r-~-~ Not Recommended ~ Treasurer's Si gn at u r e~'-----..---_~...~ Mayor Comments: ~ Recommended ~ Not Recommended ~ Approved ~ Denied Mayor's Signature Date Fiscal & Budget Committee Comments: Recommended [--~ Not Recommended Approved ~ Denied Fiscal & Budget Committee Signature Date AGENDA BILL BREMERTON CITY COUNCIL 1. SUBJECT= ORDINANCE NO. q'~ ~(::~ FOR AGENDA OF: Jan. 30, 2002 ORIGINATING DEPT: Establishing the Convention Center Fund ORIGINATOR: R. Harm~ DATE SUBMITTED: Jan. 8, 2002 2_.. ~/~/~f back if necessary) 3. EXHIBITS: Proposed Ordinance Dir. Admin. Servic¥ ~ MAYO~___/' ~/~/_..--', '--"7 ~ 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: ......... ............ to &..rc';c~,~, ,,,,, ...... ":--u ,r,,, ord!n~_ncc crcctiT, g .... C .....~,t;c,~, Crt;for :-u,',d. ~t~oo 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 PULLED ~ TABLED APPROVED DISAPPROVED ~ AMENDED~__ A I/ COUNCIL DIRECTIVE: 11. AGENDA BILL /7 2. CLEARANCE COMMENTS: 5. IMPACT ON NON-PASSAGE: The new fund will not be created. 6. ~ .fMP. AC..'r 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 I /? Approved this day of ., 2002, CARY BOZEMAN, Mayor ATTEST: KATHLEEN L. McCLUSKEY, City Clerk Convention Center Fund.ord Page 2 AGENDA BILL BREMERTON CITY COUNCIL 1. SUBJECT: ORDINANCE NO. ~--~ ~ O FOR AGENDA OF: Jan. 30, 20 ORIGINATING DEPT: Treasu r.~.'~. Authorizing the Issue of a Line of Credit Note and ORIGINATOR: Rich l-la'~na~ Accepting the Proposal of Bank of America. 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 /~.~'~'/ '~ ~j ENDORSE. M~--'~ "-I~~ APPROVED BY COUNCIL PRESIDENT FOR SUBMITTAL: 4. SHMMAR¥ STATEMENT AND REQUlRI=MENT 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 pass on second readin~ Or0inance ~o.q'~ authodzin~ the issue and acceptin~ the offer of ~ank of Ameri~. 9. RESPONSIBLE OFFICIAL: Treasurer ENFORCEMENT OFFICIAL: Mayor EXPIRATION DATE: Jan. 31,2005 REVIEW DATE: N/A 10. NOTICE OF ACTION PULLEDcouNCiL DIRECTIvE:TABLED APPROVED DISAPPROVED AMENDED ~__~ B 11 AGENDA BILL NO: ~ 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. CITY OF BREMERTON, WASHINGTON 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 1 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 Intemal 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 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 conclusively extended for an additional year upon the written request of the City Treasurer and the acceptance of the Bank at least 60 days prior to the maturity date of the Bond. 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 of a 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 Paymerlt. 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 hereof. Draw Requests are not subject to approval by the Bank, but shall be limited to an 3 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 0fFull 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. Sectiq)n 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 attthenticated, 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 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. 5 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 derived from the investment of Bond proceeds deposited into the Repair and Demolition 6 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. 7 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. 8 Bank of America Bank of An',eric.~ Public Sector B~nking WA1-501-34-03 Kerrin M. Gibbons 8oo 5th Avenue, 34th 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, /Kerrin M.~[bbons 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