HomeMy WebLinkAbout01/17/01 AGENDA CITY COUNCIL MEETING AGENDA
JANUARY 17, 2001
1. PRE-COUNCIL STUDY SESSION: 5:00 - 5:30 P.M.
A. 15-minute Study Session to discuss "HOME Fund Allocations"
B. 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 10, 2001 (#AB01-014)
4. CLAIMS/CHECK REGISTERS
5. COUNCIL MEMBER REPORTS
6. MAYOR'S REPORT
7. LEGISLATIVE REPORT
8. PUBLIC RECOGNITION - (Comments limited to 3-minutes)
9. NEW BUSINESS
A. Agreement between Harrison Hospital and the City of Bremerton to Provide Ambulance
Transport (#AB01-015)
B. Proposal to Purchase a 2001 Ambulance from Braun Northwest, Inc. (#AB01-016)
C. Professional Service Agreement Amendment with Gordon Thomas Honeywell for $9,900
(#AB01-017)
D. Phase ;[:[ Project Agreement for Bremerton/Kitsap Regional Government Center (#AB01-
018)
10. PUBLIC HEARINGS - ORDINANCES
A. Ordinance No. 4750 (Second Reading) Granting One-Year Franchise to Puget Sound
Energy (#AB01-010)
B. Ordinance (First Reading) Authorizing the Issue of a $1,250,000 Tax Anticipation Note and
Accepting the Purchase Offer of Bank of America (#AB01-019)
11. ADJOURNMENT OF MEETING
AGENDA BILL
BREMERTON CITY COUNCIL
1. SUBJECT: FOR AGENDA OF: JANUARY 17, 2001
ORIGINATING DEPT.: CITY COUNCIL
MINUTES OF MEETING-- JANUARY 10, 2001 ORIGINATOR: JOHN E. LAW, PRESIDENT
DATE SUBMITTED: JANUARY 10, 2001
2. CLEARANCES: (Comment on back if necessary) 3. EXHIBITS:
ENDORSEMENT ri INFORMATION [1 APPROVED BY COUNCIL PRESIDENT FOR SUBMITTAL:
MAYOR COUNCIL PRESIDENT
4. SUMMARY STATEMENT AND REQUIREMENT FOR COUNCIL ACTION:
8. RECOMMENDATION'
9. RESPONSIBLE OFFICIAL:
ENFORCEMENT OFFICIAL:
EXPIRATION DATE:
REVIEW DATE:
10. NOTICE OF ACTION
COUNCIL DIRECTIVE:
oi-
(OVER)
2. CLEARANCE COMMENTS:
4. SUMMARY STATEMENT (CONTINUED):
5. IMPACT OF NON-PASSAGE:
6. IMPACT ON STAFFING, BUDGETS, FACILITIES, EQUIPMENT OR OTHER RESOURCES:
7. RESEARCHSOURCES:
TAPE #1746 UNAPPROVED DRAFT
CITY COUNCIL MEETING MINUTES
January 10, 2001
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 10, 2001, at 5:30
P.M., with Council President John Law presiding. Council members present were Jim Reed, Conrad
Esser, Carol Arends, David Fart, Mike Shepherd, Ed Rollman, Cecil McConnell, and Wayne Olsen.
Also present were Deputy City Clerk Paula Johnston; Special Counsel Glenna Malanca; and
Legislative Assistant Lori Smith.
The meeting opened with the Pledge of Allegiance led by Council Member Cecil McConnell, followed
by the invocation given by Major Jim Baker of the Salvation Army.
President Law made the following announcements:
(1) Council held a Pre-Council Session in the Council Conference Room to discuss general Council
business;
(2) Item 9C under NEW BUSINESS was amended to include a resolution; and
(3) There is a 60-Minute Study Session scheduled to follow the Council Meeting tonight to discuss
"Downtown Redevelopment'.
CONSENT AGENDA
A. Minutes of Meeting - January 3, 2001 (#AB01-007)
#0015 M/S/C/U (McConnell/Arends) Move to approve Consent Agenda as presented.
CLAIMS/CHECK REGISTERS
Vouchers audited and certified by the auditing officer as required by RCW 42.24.080, and those
expense reimbursement claims certified as required by RCW 42.24.090 have been recorded on a
listing that had been made available to the Council.
#0045 M/S/C/U (Arends/Farr) On January 10, 2001, the Council does approve for payment those
vouchers included and further described as follows: Checks 248102 through 248423 in the amount of
$979,808.86; and Regular Payroll for the period ending December 31, 2000 in the amount of
$889,076.43.
COUNCIL MEMBER REPORTS
Carol Arends offered her condolences to the Plumb family for the recent loss of her dear friend
Mildred Plumb, whose grandson Randy is currently serving with the Bremerton Police Department.
Mike Shepherd announced the next District 5 meeting would be held Thursday, January 18, 2001
beginning at 6:30 P.M. at the Memorial Lutheran Church located at 10th & Veneta, to discuss the
"Proposed Bremerton/Kitsap County Regional Government Center" with Norm S. McLoughlin of the
Kitsap County Consolidated Housing Authority (KCCHA).
Ed Rollman appealed to the public for any information that may lead to solving the murder of Mrs.
Ruth Ann Davidson last January. Any information may be provided to the Kitsap County Sheriff
Office at 337-7101.
Wayne Olsen assured residents in the are of Lebo Blvd. reported on the problems experienced by
Lebo Blvd. residents during the current road project in the area,
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January 10, 2001
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President Law announced the next District 3 Neighborhood meeting for lower Manette would be held
Tuesday, January 16, 2001 beginning at 7:00 P.M. at the Senior Center located at E. 13th & Nipsic to
discuss the proposed "Merger of Fire Districts" with Chief Al Duke of the Bremerton Fire Department.
MAYOR'S REPORT
· Thanked all those who organized and supported the successful Spaghetti Feed fundraiser for
Bremerton Centennial events held last Friday;
· Several events in honor of Bremerton's Centennial celebration that are currently scheduled for the
upcoming year were announced;
· In honor of Martin Luther King, Jr., a luncheon would be held at the Kitsap Golf & Country Club on
Saturday, January 13, 2001 beginning at 2:00 P.M.;
· As well as a county-wide celebration on Monday, January 15, 2001 from 10:30 A.M. to 1:30 P.M.
at the Kitsap Pavilion; and lastly
· Monday, January 15, 2001 was proclaimed as "Martin Luther Kino_. Jr. Day" in the City of
Bremerton in honor of his many significant achievements.
LEGISLATIVE REPORT - There was no report this evening.
PUBLIC RECOGNITION
Jack Lefcoski provided his comments on the proposed Bremerton/Kitsap County Regional
Government Center.
Rodney R. Davies suggested that the City Attorney become an "elected official"; and asked if there
was money available for a "clean-up" event for City residents this year.
Ed Pietras invited the public and the Council to the Martin Luther King, Jr. Scholarship Foundation
luncheon on Saturday, January 13, 2001 beginning at 2:00 P.M. at the Kitsap Golf & Country Club.
Gene Sampley addressed a group of residents from the Lebo Blvd. area in response to their
concerns regarding the current construction project in their neighborhood. Citizens were encouraged
to write to the City as well as the contractor if they have additional concerns to be addressed.
9A - APPOINTMENT OF DAVE BOYTON TO THE PARKS & RECREATION COMMISSION
(#AB01-008): Mayor Lynn Horton announced that there is a vacancy on the Parks & Recreation
Commission due to the resignation of Barry Cook. She provided comments to support her
recommendation for Dave Boynton to fill that position. In addition, the Mayor thanked Mr. Cook for
his 10 years of service.
There were no comments from the public
#0810 M/S/C/U (Farr/McConnell) Move to confirm the appointment of Dave Boyton to the Parks &
Recreation Commission.
9B - EMPLOYMENT CONTRACT FOR CITY ENGINEER JENNIFER STREHLER (#AB01-009):
Gene Sample_v, Public Works & Utilities Director, commented on Ms. Strehler's qualifications and
was pleased that she would working for the City.
There were no comments from the public.
#1650 M/S/C/U (Esser/Reed) Move to confirm the appointment of Jennifer Strehler as Bremerton City
Engineer.
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City Council Reg. Mtg. Minutes
January 10, 2001
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9C - RESOLUTION NO. 2795, BID AWARD TO GOLF LANDSCAPING INC FOR DESIGN AND
CONSTRUCTION OF PENDERGAST PARK ILLUMINATION PROJECT (#AB01-O06): Cris Gears,
Parks & Recreation Director, stated that bids were opened on Thursday, December 14th for the
design and construction of the Pendergast Park Illumination project, which includes the lighting of
three softball fields, two soccer fields, and a 440-car parking lot. A total of five (5) bids were received
for the project (see Bid Tabulation sheet in the Council packet). The lowest qualified bidder for the
project was Golf Landscaping, Inc. of Puyallup with a lump sum bid of $489,800. The total contract,
including Washington State sales tax, is $52g,g64. The estimated cost for this project was $550,000.
Earlier this year, the City signed an agreement with the Inter-Agency Committee for Outdoor
Recreation (lAC) to provide a $150,000 grant for this project. Other funding for this project is being
provided by the Kitsap County ($200,000), FC Kitsap Soccer Club, the Women's State Soccer
Association, Bremerton Athletic Roundtable, the Pendergast Memorial Committee, and the City of
Bremerton's Park Improvement Fund. Ace Paving and the Department of the Navy have offered to
supply labor and equipment, if needed, to ensure completion of this project. If the contract is
approved, construction will commence in January, and the lights will be fully operational in time for
the upcoming softball season.
Morcjan Roehl provided comments including a suggestion for an indoor soccer field as well as
additional lighting. Mr. Gears suggested that due to the significant increase in cost for additional
lighting, that type of proposal should first be brought to the Parks & Recreation Advisory Committee.
Mr. Roehl clarified that he had intentions of researching private funding for his ideas.
Dave Bo_vton provided comments in support of this action before the Council.
#2450 M/S/C/U (McConnell/Reed) Move to authorize and direct the Mayor to execute the contract for
the Pendergast Park Illumination Project with Golf Landscaping inc. for the lump sum amount of
$529,964, subject to City administrative policies and procedures.
10A - ORDINANCE (FIRST READING) GRANTING ONE-YEAR FRANCHISE TO PUGET SOUND
ENERGY (#AB01-010): Kathleen McCluskey, Administrative Services Director, stated that the
Puget Sound Energy Franchise originally terminated in January 2000 and was renewed for a one-
year period to allow staff time to renegotiate. Due to potential Federal and State changes to the
power industry city administration chose to defer negotiations and requests an additional one-year
franchise for the period January 12, 2001 to January 11, 2002. Don S. McDaniel, Puget Sound
Energy Manager of Corporate Relations, provided a brief report on the current condition of the market
for energy costs, as well as demand; and suggested that City contract negotiations begin soon.
There were no comments from the public.
#2685 M/S/C/U (Farr/Olsen) Move to approve ordinance on first reading, granting one-year franchise
to Puget Sound Energy.
Wayne Olsen stepped out of the meeting at approximately 6:48 P.M. and was not available for the
following vote.
11A- RESOLUTION NO. 2792 REGARDING RECOVERY OF FEES FOR SECURING BUILDING
ON PROPERTY LOCATED AT 2133 11TM STREET (#AB01-011): Janet Lunceford, Building
Development Specialist TI, affirmed that on November 1, 2000, the Fire Department abated and
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City Council Reg. Mtg. Minutes
January 10, 2001
Page 4 of 5
vacated the building on the property located at 2133 11th Street due to a broken sewer line inside the
dwelling which had resulted in the accumulation of sewage in the basement. The executrix of the
estate of the owner, Ernestine Woodworth, chose to have Public Works secure the building, and the
cost of the action, including administrative fees, totaled $1,991.20.
There were no comments from the public.
#2861 M/S/C/U (Reed/McConnell) Move that Council pass Resolution No. 2792, ordering that the
fees incurred for securing the building located at 2133 11th Street in the amount of $1,991.20 be
collected as reasonable abatement costs and become a lien against the property.
1 lB - RESOLUTION NO. 2793 REGARDING RECOVERY OF FEES FOR ABATEMENT OF
GARBAGE AND DEBRIS FOR PROPERTY LOCATED AT 2711 & 2713 HEFNER AVENUE
(#AB01-012): Janet Lunceford, Building Development Specialist TT, announced that on November
28, 2000, Public Works removed garbage, debris and furniture from the property located at 2711 &
2713 Hefner Avenue after the owner of record, James B. Hartstrom, failed to do so as ordered by the
Building Official. The costs incurred for this action, including administrative fees, totaled $1,208.10.
There were no comments from the public.
Wayne Olsen returned to the meeting at 6:55 P.M. Jim Reed stepped out of the meeting, and was
not available for the following vote.
#3100 M/S/C (Arends/McConnell) Move that Council pass Resolution No. 2793, ordering that the fees
incurred for the abatement of garbage and debris located at 2711 & 2713 Hefner Avenue be collected
as reasonable abatement costs and become a lien against the property.
Voted in favor of motion: McConnell, Rollman, Shepherd, Fart, Arends, Esser, and Law
Abstained: Olsen
Motion Carried: 7-Yes; 1-Abstention
Jim Reed returned to the meeting at approximately 6:58 P.M.
11C - RESOLUTION NO. 2794 REGARDING RECOVERY OF FEES FOR SECURING BUILDING
ON PROPERTY LOCATED AT 317 CASAD AVENUE (#AB01-013): Janet Lunceford, Building
Development Specialist IT, mentioned that on October 4, 2000, the City abated and vacated the
structure located at 317 Casad Avenue. The abatement order required the owners of record, David
and Sherri McCarroll, board up all openings into the building by October 7, 2000 to prevent vacated
tenants from returning. The owners took no action, and Public Works secured the building on
October 9, 2000 at a cost of $644.16. The building was later vandalized and required further action
to secure it against entry on November 28, 2000. The cost of the second board up was $127.20.
The total cost of both actions, including administrative fees, totaled $1,611.36.
There were no comments from the public.
#3270 M/S/C/U (Farr/Arends) Move that Council pass Resolution No. 2794, ordering that the fees
incurred for securing the buildings located at 317 Casad Avenue in the amount of $1,611.36 be
collected as reasonable abatement costs and become a lien against the property.
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City Council Reg. Mtg. Minutes
January 10, 2001
Page 5 of 5
With no further business, meeting concluded at 7:00 P.M. Council reconvened in the Conference
Room for a 60-Minute Study Session on "Downtown Redevelopment".
Prepared and Submitted by:
LORI SMITH, Legislative Assistant
Attest:
PAULA JOHNSTON, Deputy City Clerk
JOHN LAW, City Council President
City of Bremerton
JL/PJ/Is/cge
c: Normal Distribution
File
AGENDA BILL
BREMERTON CITY COUNCIL
1. SUBJECT: FOR AGENDA OF: 01/17/2001
ORIGINATING DEPT: Fire
Agreement between Harrison Hospital and ORIGINATOR: Al Duke, Fire Chief
the City of Bremerton to provide ambulance DATE SUBMITTED: 01/03/2001
transport.
2. C, LEARANCES:Con~. it of back if necessary) 3. EXHIBITS:
Budget & Fiscal ~ Agreement
ENDORSEMENTS, ~ INFORMATION APPI:~i~'13 BY COUNCIL PRESIDENT FOR SUBMITTAL:
4. SUMMARY STATEMENT AND REQUIREMENT FOR COUNCIL ACTION:
This is an agreement I~etween the City of Bremerton and Harrison Hospitaf't.o~mvide ALS and backup BLS
transports between Harrison-Bremerton and Harrison-Silverdale. On July 10th, Harrison Hospital opened
their Silverdale campus for OB/GYN and pediatric patients. A need arised on transporting patients from one
campus to the~Nfler. Harrison Hospital approached the Fire Department to meet this-~ed, and the following
is the agreement that was reached.
8. RECOMMENDATION:
--.?hat *.he City Cc'.;ncil authorize the Mayor to sign and enter into the Agreement between Harrison Hospital
and the City of Bramerton to provide ambulance transports.
9. RESPONSIBLE OFFICIAL: Al Duke, Fire Chief
ENFORCEMENT OFFICIAL: Al Duke, Fire Chief
EXPIRATION DATE: 06/30/2003
REVIEW DATE: 06/30/2001
10. NOTICE OF ACTION
PULLED TABLED APPROVED DISAPPROVED AMENDED
COUNCIL DIRECTIVE: 11. AGENDA BILL NO:
2. CLEARANCE COMMENTS:
5. IMPACT ON NON-PASSAGE:
There are no agencies in the immediate area to provide ALS ambulance services, either Olympic Ambulance,
Services would have to hire personnel or Central Kitsap Fire & Rescue to provide the service.
6. IMPACT ON STAFFING, BUDGETS, FACILITIES, EQUIPMENT OR OTHER RESOURCES:
There would not be any impact on the staffing levels, but there is an increase use of vehicles and equipment
along with an increase in supplies needed.
7. RESEARCH SOURCES:
AGREEMENT BETWEEN
HARRISON MEMORIAL HOSPITAL
AND
CITY OF BREMERTON
This agreement is entered into this 1 st day of July, 2000, by and between Harrison
Memorial Hospital, (hereinafter referred to as "Hospital"), and the City of Bremerton,
(hereinafter referred to as "the City").
I. PURPOSE AND SCOPE
The pm'pose of the Agreement is to make available, at a reasonable charge, from a
preferred provider, ambulance Advanced Life Support (ALS) and back-up Basic
Life Support (BLS) patient transfers between Harrison Hospital in Bremerton and
Harrison Silverdale pursuant to the terms and conditions contained in this
Agreement.
II. DEFINITION OF TERMS
A. The term "Preferred Provider" shall mean the City is called first by the
Hospital's personnel for ambulance transportation between the Emergency
Room of Harrison Hospital- Silverdale and the Emergency Room of
Harrison Hospital-Bremerton, as defined below. In the emergent event that
the City cannot provide services in a timely manner, as defined below,
another vendor shall be contacted by the Hospital. Ambulance response
parameters to Harrison Silverdale are twelve (12) minutes for BLS and six
(6) minutes for ALS transports, and shall be taken as an average."
B. "Patient means any patient transferred between the Bremerton Hospital
campus and the Silverdale Hospital campus referred to above.
III. SERVICES
The City agrees to provide ambulance services as described below to Hospital,
and, will send invoices as set forth on Attachment I.
A. Basic Life Support
The City agrees its Basic Life Support Transports shall be staffed by two
(2) members, who shall be either Emergency Medical Technicians or
Paramedics, or a combination thereof, certified as such under the proper
licensing authorities. Back-up ambulance services shall be rendered in a
manner so as to preserve patient dignity and provide continuity of care.
Ambulance services are available 24 hours a day, every day of the year.
B. Advanced Life Support
The City agrees its Advanced Life Support Transports shall be staffed by
two (2) members, one of which shall be a Paramedic, certified as such
OSnursing\document\general\agreemenfiCity of Bremerton.doc
Page 1 of 5
under the proper licensing authorities. Ambulance services shall be
rendered in a manner so as to preserve patient dignity and provide
continuity of care. Ambulance services are available 24 hours a day, every
day of the year.
IV. RELATIONSHIP OF PARTIES
The City and Hospital are independent contracting parties. The City shall not be
considered an agent or employee of Hospital for any purpose. The City shall be
solely and entirely responsible for its acts and the acts of its employees, officers,
directors, and agents during the term of this agreement and assumes exclusive
responsibility for payment of all wages owing to its personnel for services
performed by them for Hospital. Furthermore, in providing ambulance services,
The city agrees to comply with all applicable federal, state, and local laws and
regulations governing the delivery of such transportation services.
V. LICENSURE AND CREDENTIALING
The City warrants that it shall at all times maintain all necessary business and
professional licenses and certificates, and that it shall, upon request, provide
evidence of same to Hospital. The City also warrants that it is fully licensed, able,
and certified to perform through its own staff, all aspects of ambulance
transportation noted in this Agreement.
VI. LIABILITY, INSURANCE, AND INDEMNITY
A. The City shall maintain liability insurance coverage through an insurance
carrier approved by the Washington State Insurance Commissioner for
such coverage in the amount not less than ONE MILLION DOLLARS
($1,000,000.00) per occurrence and TWO MILLION DOLLARS
($2,000,000.00) in the aggregate at The City's expense.
B. Hospital shall maintain liability insurance for its staff through an insurance
carrier approved by the Washington State Insurance Commissioner for
such coverage in an amount not less than the limits applicable to The City
C. Mutual Indemnity. Each party to this Agreement agrees to indemnify the
other party and to defend and hold the other party harmless from and
against every claim, demand, liability, loss, cost, expense, and fee of any
kind (including a reasonable attorney fee), and any and all liability
therefore sustained or incurred by reason of each party's performance of
its duties under this Agreement respectively.
VII. REFERRALS AND CONTRACT MONITORING
Hospital agrees to notify appropriate personnel as to The City's "Preferred
Provider" status and to instruct such personnel that The City is to be utilized as
the preferred or "first call" provider of ambulance transportation as provided
herein, through the Cencom's 911 emergency line.
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VIII. RECORD KEEPING REQUIREMENTS
The City and Hospital agree to take appropriate action to maintain and protect the
confidentiality of patient records and to comply with all state and federal laws and
regulations pertaining to record keeping.
IX. QUALITY ASSURANCE, UTILIZATION REVIEW, AND CONSUMER
RELATIONS
The City agrees to cooperate fully with Hospital's requirements for quality
assurance, utilization review, and consumer relations programs. The City and
Hospital will mutually agree to establish and provide the most efficient, medically
necessary means of transportation.
X. CONFIDENTIALITY
Except as authorized by both The City and Hospital, as required by applicable
laws and regulations, or as necessary to effectively carry out this Agreement, the
information in the Attachment shall not be divulged, in whole or part, by either
party, their agents, and/or employees, to any third party during the term of this
Agreement. Neither party will disclose proprietary information about the other
party, which is obtained in carrying out this Agreement.
XI. DURATION AND TERMINATION
This agreement shall commence on July 1, 2000, and shall continue for a term of
three (3) years, terminating on June 30, 2003, subject to earlier termination for
cause such as described in Section XII of this Agreement.
The City and Hospital agree that this contract may be automatically renewed at
the end of the above period for an additional one (1) year with approval of both
parties in the form of an extension addendum.
The City and Hospital agree that transport fees may be adjusted annually on the
anniversary date of this Agreement, upon written notice.
XII. TERMINATION FOR CAUSE BEFORE END OF TERM
Either party shall have the right to terminate this Agreement without cause with
written notice to the other party, no less than 90 days prior to termination of
Agreement.
XIII. BILLING AND PAYMENT TERMS
The City agrees to bill Hospital quarterly for transports occurring the previous
three (3) months. Hospital agrees to pay ambulance within 25 days of receipt of
invoice.
XIV. NOTICES
All written notices, which are required or permitted under this Agreement, shall
be sent by United States mail, postage prepaid, addressed to the respective parties
as follows:
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Hospital The City
Harrison Memorial Hospital Bremerton Fire Department
2520 Cherry Avenue 817 Pacific Avenue
Bremerton, WA 98310 Bremerton, WA 98337
XV. OTHER GENERAL PROVISIONS
Neither party may assign its right nor delegate its duties under this Agreement to
any other person or entity for any purpose without prior notification and
acceptance of effected party.
This Agreement supercedes any and all other agreements, either oral or in writing,
between the parties with respect to the subject matters hereof except as identified
in this Agreement.
This Agreement, including attachments, constitutes the entire understanding of
the parties. No changes, amendments, or alterations shall be effected unless
signed by both parties and attached to the original Agreement.
This Agreement shall not be assigned or transferred by either party and such
assignment shall be void and of no force or effect without the express written
agreement of both parties.
XVI. AUTHORITY OF PARTIES
Each of the undersigned individuals represents and warrants that he or she is duly
authorized to execute and deliver this Agreement on behalf of each corporate
party indicated below and that this Agreement is binding upon said party in
accordance with its terms.
IN WITNESS WHEREOF, Hospital and The City have duly executed this Agreement
effective the date first above written.
Hospital The City
By: By:
Its: Attest:
Date: Date:
Attest to Form/Legality
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ATTACHMENT I
Financial considerations are as follows:
A. Harrison Memorial Hospital agrees to pay The City according to the following
schedule:
1. BLS or ALS transportation between Harrison Silverdale and Harrison
Hospital, Bremerton:
BLS ALS
07/01/00 - 12/31/00 $234.00 $277.00
01/01/01 - 07/01/01 $253.00 $296.00
Above prices are for one-way transportation and include all ancillaries and
mileage.
2. Remit payment within 25 days of receipt of quarterly invoices for each of
the above services.
B. Hospital and The City agree:
1. The City will send statements on a monthly basis for each transport for
services provided to:
Harrison Memorial Hospital
Accounts Payable
2520 Cherry Avenue
Bremerton, WA 98310
2. Hospital will remit payments to:
The City of Bremerton
239 4th Street
Bremerton, WA 98337
C. Questions/disagreements about transports (such as number, BLS vs. ALS,
appropriate type of transport, etc.) shall be discussed by Vice President, Nursing
Services of Harrison Bremerton, and the Fire Chief and/or Medical Officer of the
City.
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AGENDA BILL
BREMERTON CITY COUNCIL
1. SUBJECT: FOR AGENDA OF: 01/1712001
ORIGINATING DEPT: Fire
Proposal to purchase a 2001 ambulance ORIGINATOR: Al Duke, Fire Chief
from Braun Northwest, Inc. DATE SUBMITTED: 01/03/2001
2. CLEARANCES: Comment of back if necessary) 3. EXHIBITS:
Budget & Fiscal ('//~ / 7 ' '/~ Contract Proposal
Operations
ENDORSEMENTS /~ INFORMATION APPROVED BY COUNCIL PRESIDENT FOR SUBMITTAL:
4. SUMMARY STATEMENT AND REQUIREMENT FOR COUNCIL ACTION:
Attached is a contract proposal to purchase a 2001 ambulance from Braun Northwest, Inc. There currently
are three Braun ambulances in the fleet, this one will replace the 1988 that was surplused earlier in the year.
The City of Bremerton has in effect an Intergovernmental Cooperative Purchasing Agreement signed in 1994
that has allowed us to purchase off the Central Kitsap Fire & Rescue bid.
8. RECOMMENDATION:
Th~ the ~._,~me.'!.em City _tun_il _authorize the Mayor to sign and enter into the contract proposal with
Braun Northwest, Inc for the purchase of a 2001 ambulance.
9. RESPONSIBLE OFFICIAL: Al Duke, Fire Chief
ENFORCEMENT OFFICIAL: Al Duke, Fire Chief
EXPIRATION DATE:
REVIEW DATE:
10. NOTICE OF ACTION
PULLED TABLED APPROVED DISAPPROVED AMENDED
2. CLEARANCE COMMENTS:
5. IMPACT ON NON-PASSAGE:
There would be a delay in the process of procring a replacement Paramedic Ambulance. The 1988 ambulance
that this vehicle is replacing was surplused earlier in 2000 and leaves the Department with one reserve vehicle.
6. IMPACT ON STAFFING~ BUDGETS~ FACILITIES~ EQUIPMENT OR OTHER RESOURCES:
The revenue for the purchase of this vehicle is in the 2001 budget.
7. RESEARCH SOURCES:
Braun Northwest,, .
P.O. Box 1204 · Chehalis, WA 98532 · www. braunnortbsest, com
1-800-245-6303 ', Fax: 360-748-0256 ,, braunnw@localaccess.com
SEPTEMBER 29 PROPOSAL 2000
STAN PLYLER
BREMERTON FIRE DEPT.
817 Pacific Avenue
-Bremerton, Washington 98337
FAX: 360-478-5397
RE: :MEDICAL UNIT
BRAUN NORTHWEST, ENC. IS.PLEASED TO OFFER THE FOLLOWING PROPOSAL:
ONE (1) 2001 TYPE In NORTH STAR 167 MEDICAL UNIT BUILT -
ON 2001 FORD E450 CHASSIS, per manufacturer's specifications
and dr~/wings. (NOTE: Proposal is based ~,~pon Central Kitsap Fire
& Rescue bid datedMay 27, 1999, which is open to interlocalpurchases.)
BASE PRICE FOR CENTRAL KITSAP FIRE & RESCUE BID: ........................ $105,825.00
Delete Inspection Visit: ............................................................................................... < 200.00>
Deduction for chassis' prepayment: .................. , ........................................................ < 450.00>
Deduction for delivery: ........... ~ ................................................................................... < 200.00>
Addition to meet Bremerton's needs: '. ...................................................................... 11~47§ 30
TOTAL AMOUNT F.O.B.: BREMERTON, WASHINGTON ............................... $116,445.00
(Sales Tax not included)
OPTIONS: See Pages 2 and 3.
TERMS: CHASSIS PAYMENT OF THIRTY THOUSAND DOLLARS ($30,000.00)
DUE WHEN CHASSIS ARRIVES AT BRAUN NORTHWEST, INC.
NINETY PERCENT (90%) OF BALANCE DUE UPON RECEIPT VEHICLE.
REMAINING BALANCE DUE IN THIRTY (30) DAYS.
DELIVERY: APPROXIMATELY ONE HUNDRED EIGHTY (180) DAYS.
Braun Northwest, Inc. is a Washington dealer (0991) with insurance information available
upon request.
Respectfully Submitted by We agree to accept the above proposal:
BRAUN NORTHWEST, INC. BREMERTON FIRE DEPARTMENT
~ral Manager Signature Date
Date: 9- ~ ~}' 200 c~
Printed Name Title
(~)
OPTIONS
FOR
BREMERTON FIRE DEPARTMENT
' BREMERTON, WASHINGTON
(September 29, 2000, proposal)
..
The following items are included in our base Proposal, but may be deleted.
Please indicate the 'options you want to deduct, if any, by initialing beside the appropriate number or
by the "NONE OF THE ABOVE" selection. Then sign where indicated below. After completion,
please return this original 'form to our office along with the origina~ proposal.
Thank you!
1) Delete three (3) Pulse Oximeters.
DEDUCT: ................................................................................................ $<3,300.00>
2) Delete "install communication equipment as specified or equal."
DEDUCT: ................................................................................................ ~3,000.00~
3) 'Delete inverter.
DEDUCT: .......................................................................................... , ..... ~1,100.00~
4) Exchange two (2) clear strobes for clear LEDs in front lightbar.
DEDUCT: ....................................................................... ~ ....................... ~ 800.00~
5) Exchange strobes for LEDs in rear lightbar.
DEDUCT: . ' ~ 500.00~
6) Change from one (1) 15 amp and one (1) 20 amp auto eject shoreline
to one (1) 30 amp twistlock shoreline.
DEDUCT: ................................................................................................ ~ 500.00~
7) Exchange four (4) strobes for LEDs in front lightbar.
DEDUCT: ................................................................................................ ~ 400.00~
8) Exchange four (4) side strobes for LEDs.
DEDUCT: .................................................................................. , ............. ~ 400.00~
9) Delete gray polyurethane in compa~nxents and use gray splatter paint.
DEDUCT: ................................................................................................ ~ 300.00~
I0) Delete lt0V heater.
DEDUCT: ................................................................................................ ~ 300.00~
11) Delete IV warmer.
DEDUCT: ................................................................................................ < 250.00>
(2)
OPTIONS
FOR
BREMERTON FIRE DEPARTMENT
BREMERTON, WAS[HNGTON
(September 29, 2000, proposal)
~cont.)
12) Delete recessed roof for recessed front and rear lightbars.
DEDUCT: ..................................................................................... . .. . .. . . ... < 200.00>
13) For compartment #1 - delete inside / oUtside access, and safety net.
DEDUCT: ................................................................................................ < 200.00>
14) Delete compartwent door in right front comer.
DEDUCT: .............................................. ; ........................... . ...... ~ ................ < 200.00>
15) Delete simplex lock on drawer.
'DEDUCT: .................................................................................. ~ .............. < 200.00>
16) Delete cot plates.
DEDUCT: ............................................................................................... < 200.00>
17) NONE OF THE ABOVE.
(NOTE: THIS PRICING DOES NOT INCLUDE SALES TAX.)
APPROVED BY:
(Signature) (Date) (Printed Name) (Title)
(9-29-2000)
(3)
AGENDA BILL
BREMERTON CITY COUNCIL
1. SUBJECT: FOR AGENDA OF: January 17, 2001
Professional Services Agreement ORIGINATING DEPT: Legal
Amendment ORIGINATOR: David St.Pierre
DATE SUBMITTED: January 11, 2001
2. CLEARANCES: (Comment on back if necessary) 3. EXHIBITS:
' ' . 'erre, Asst City Attorney
Professional Services Agreement
Fisca~ ~udge~ ~omm~t~e
ENDORSEMENT'~ INFORMATION [] APPROVED BY COUNCIL ?RE~I~ENT ~OR SUBMITTAL:
4. SUMMARY STATEMENT AND REQUIREMENT FOR COUNCIL ACTION:
The City has retained counsel to provide legal services in areas of expertise.
Upon occasion a firm is asked to extend their services for additional time or
compensation when the City is satisfied with the current services being received
and are in litigation. Gordon Thomas Honeywell is representing the City in the
Burlington and Mincey lawsuit.
We have received, to date, bills through November 30, 2000 in excess of $9,900
of the current contract. More expenses are expected and at the time an estimate
can be provided for the year 2001, another contract will be forwarded to Council
for consideration and possible approval.
5. RECOMMENDATION:
to approve the amendment to professional services agreement with Gordon
Thomas Honeywell increasing compensation not to exceed an additional Nine
Thousand Nine Hundred Dollars ($9,900) to cover invoices received to date, for
a total contract amount of $24,900.
6. RESPONSIBLE OFFICIAL:
ENFORCFA~ENT OFFICIAL:
EXPIRATION DATE:
R~ViEW DATE:
7. NOTICE OF ACTION
PULLED [] TABLED [] APPROVED [] DISAPPROVED [] AMENDED [] DATE:
COUNCIL DIRECTIVE: 8. AGENDA BILL NO.:
2. CLEARANCE COMMENTS:
5. IMPACT OF NON-PASSAGE:
Overload upon City resources to detrimental of other responsibilities. Services
to be provided to the City will occur but not be paid.
6. IMPACT ON STAFFING~ BUDGETS, FACILITIES, EQUIPMENT OR OTHER RESOURCES:
None
7. RESEARCH SOURCES:
PROFESSIONAL SERVICES AGREEMENT
Retained Counsel Services - Amendment
This agreemem is by and between the City of Bremerton (hereinafter "City") and Steven
Reich, Gordon Thomas Honeywell, (hereinafter "Retained Counsel"); and is made and entered
into pursuant to the provisions of Chapter 39.34 RCW.
WITNESSETH:
WHEREAS, the parties entered into a professional services agreement for legal services
to be provided to the City by Retained Counsel on October 1, 2000; and
WHEREAS, the parties with to amend the agreement to provide for additional
compensation;
NOW THEREFORE, in consideration of the mutual covenant hereinatter stated, the
parties hereto agree as follows:
Section 3. Compensation, is amended to read:
This agreement shall not exceed an additional Nine Thousand Nine Hundred Dollars
($9,900) for a total of Twenty-four Thousand Nine Hundred Dollars ($24,900).
All other terms and conditions of the parties October l, 1999 Professional Services Agreement
shall remain in full force and effect unless inconsistent with this agreement.
Dated this ~ day of January, 2001.
CITY OF BREMERTON GORDON THOMAS HONEYWELL
BY: BY:
LYNN S. HORTON, Mayor STEVEN REICH
APPROVED AS TO FORM:
DAVID B. ST.PIERRE,
Assistant City Attorney
' ~ceived for Filing:
~N McCLUSKEY, City Clerk
Aoneyw¢ll. Amd- I/11/01
AGENDA BILL
BREMERTON CITY COUNCIL
17
1. SUBJECT: Bremerton/Kitsap County FOR AGENDA OF: 1/~/01
Regional Government Center ORIGINATING DEPT: Executive
Phase II Project Agreement ORIGINATOR: Mayor Horton
DATE SUBMITTED: 12/27/00
2. CLEARANCES: (commentton back 3. EXHIBITS:
-- if ~ ~~%ary) //~//~ ary) ....
· ' ---'~ ~ ' '~' [ '' (£ffe ~ive upon pecial
Fmscal & Budget~7~]~ ~--'~)~, ,.~ .. ~ Counse
. o , ,=a ioos
Ope r a t i o n s ~~_~_. __~'~-
ENDORSEMENT ~ INFORMATION APPROVED BY COUNCIL PRES/L~ NT FOR SUBMITTAL:
COUNCIL PRESIDENT ~/
4. SUMMARY STATEMENT AND REQUIREMENT FOR COUNCIL ACTION:
The creation of the Bremerton/Kitsap County Regional Government Center is
a joint project between the City of Bremerton, Kitsap County and the
Kitsap County Housing Authority. The goal is to provide consolidated
facilities for city, county, state and federal government departments and
agencies that will provide for more efficient and productive services for
the citizens of Kitsap County. For over a year a group of representatives
from the City, County and other government and business leaders have met
to create a practical, achievable strategy to revitalize downtown
Bremerton. There are three key elements: 1) development of the Government
Center; (continued on back)
8. RECOMMENDATION:
Motion to approve Phase II Project Agreement.
9. RESPONSIBLE OFFICIAL: Executive
ENFORCEMENT OFFICIAL: Executive
EXPIRATION DATE:l/I/02
REVIEW DATE: Continuous
PULLED TABLED APPROVED DISAPPROVED E
COUNCIL DIRECTIVE: DATE:
2. CLEARANCE COMMENTS (cont.) :
4. SUMMARY STATEMENT (cont.) :
2) Set in place new design standards and appropriate zoning to ensure
private investment in the downtown and 3) development of housing.
Progress has been made to make this strategy reality. The proposed design
standards have been developed into a set of proposed downtown Bremerton
policies and Land Use Codes and have been presented to the Bremerton
Planning Commission for consideration. Phase I analysis is complete and
the project is now'ready to enter Phase II. Under this phase LMN
architeCts will complete the schematic design for the building, and the-
HouSing Authority wilt undertake such other pre-development tasks as
reasonably necessary to enable the parties to commit to construction of
the building. This may include, but is not limited to, economic
development analysis and engineering services. This agreement also
authorizes the acquisition of land for the building as well as adjacent
property necessary or convenient for the building.
5. IMPACT ON NON-PASSAGE:
The project does not proceed.
6. IMPACT ON STAFFING, BUDGETS, FACILITIES, EQUIPMENT OR OTHER RESOURCES
The budget for this phase is $400,000. Also authorized is the expenditure
of up to 2 million for property acquisition. The city is responsible for
10% of the above costs. All costs associated with the Phase II agreement
will be paid with bond proceeds if the project moves forward to
completion. If not, the city will be responsible for our share of
incurred costs from the general fund.
7. RESEARCH SOURCES:
CONFIDENTIAL
DO NOT DISCLOSE
PHASE II PROJECT AGREEMENT
This Phase II Project Agreement ("Agreement") is entered into this day of
., by and among the KITSAP COUNTY CONSOLIDATED
HOUSING AUTHORITY, a public body corporate and politic of the State of Washington (the
"Housing Authority"), the CITY OF BREMERTON, a Washington municipal corporation
("City"), acting by and through its legislative body unless otherwise specifically provided, and
KITSAP COUNTY, a Washington municipal corporation (the "County"). The parties agree as
follows:
RECITALS
1. The parties entered into a Pre-Construction Agreement as part of Phase I of
the potential development of an office building in Bremerton ("Building").
2. As part of Phase I, the Housing Authority evaluated certain aspects of the
feasibility of constructing the Building. The parties now wish to have the Housing Authority
proceed with additional tasks related to developing the Building as part of Phase II of the
potential Building development.
3. The parties estimate that total development costs for the Building will be
approximately $30.5 million exclusive of property acquisitions costs and that the Building will
be condominiumized so that portions can be sold to various public agencies and other entities.
PHASE II HOUSING AUTHORITY TASKS
4. As part of Phase II, the Housing Authority shall:
· Contract with LMN architects to complete the schematic design for the Building - as
· Present the design to the other parties for review and comment;
· Direct LMN architects to make design changes agreed to by the parties; and
· Subject to advance ~proval bY ~e City and County, undertake such other pre-development
tasks as the Housing Authority deems to be reasonably necessary to enable the parties to
commit to construction of the Building. This may include, but is not limited to, economic
development analysis and engineering services.
-1-
50208968.02
To complete these tasks, the Housing Authority is authorized to incur expenses of up to a
total of $400,000. The parties estimate that the breakdown of expenses for Phase II will be as
follows:
LMN Schematic Design $300,000
Housing Authority Expenses 20,000
Economic Development 20,000
Subconsultants 60,000
Total: $400,000
With respect to each of these elements of Phase II, the Housing Authority or its
consultants, as applicable, shall provide the other parties with a narrative of the work to be
performed along with anticipated costs for performing the work.
PHASE II HOUSING AUTHORITY REMIBURSEMENT
5. Under the Pre-Construction Agreement, the Housing Authority incurred
certain costs involved in Phase I of the evaluation of the feasibility of the Building.
6. Following the completion of the tasks identified in this Agreement, the parties
anticipate that bonds will be issued to pay all costs of the Building, including Phase I cost~ and
the costs incurred under this Agreement.
7. If the Building is not constructed, the provisions of the Pre-Construction
Agreement shall govern Phase I costs, and the parties shall share the costs that the Housing
Authority incurs under Section 4 of this Agreement in the following proportions: the County
shall pay 80 percent; the Housing Authority shall pay 10 percent; and the City shall pay 10
percent. This section will apply if (and only if) construction on the Building has not
commenced by April 1, 2002. If this section applies, the parties shall pay their share of the costs
to the Housing Authority within 30 days after receiving an invoice from the Housing Authority.
The Housing Authority costs to be reimbursed shall be limited to direct costs
applicable to the project. Such costs shall include: the actual cost of hours ;,nc!u~;.ng b"~ ncr
limited t¢ ~/rect !abcr, related payrc!! taxes an~ benefits worked by Housing Authority staff on
the project; travel costs related directly to the project; reasonable indirect costs allocable to the
project. For the purposes of this agreement, indirect costs shall be limited to 35% of direct costs.
LAND ACQUISITION
8. The parties further authorize the Housing Authority to negotiate acquisition or
,,~ ,~ e, ~;u;^~ to acquire land for the Building, as well as adjacent
purchase optiOns spend ~v ..............
property (collectively, the "Property") that the Housing Authority determines would be necessary
or convenient for the Building. The CountY andthe City reserve the right to approve the leto
and:conditi°ns Of any land PurChases or °Ptions to purChaSe, Pursuantt° the t~s of this seaion.
This Agreement refers to the Housing Authority's costs of acquiring the Property (including
-2-
50208968.02
transaction costs) as the "Acquisition Price." m~ _~,-,; .... ,;~;~,~ ,h,,, ,h~ 13,G1.4~ ..... ill 1.,~
9. If construction on the Building has not commenced by April 1, 2002, the
Housing Authority may sell the Property at a price approved by the City and County. The
proceeds of any sale shall first be used to reimburse the Housing Authority for the Acquisition
Price and any costs related to the disposition of the Property. The parties shall divide the
remaining proceeds, if any, based on the following percentages: Kitsap County 80%, Kitsap
Consolidated Housing Authority 10%, City of Bremerton 10%. If the proceed of the sale are
insufficient to reimburse the Housing Authority for the Acquisition Price and any costs related to
the disposition of the Property, the parties shall make up the deficit based on these same
percentages.
MISCELLANEOUS PROVISIONS
10. The parties agree that upon completion of the Building, the Housing
Authority shall receive a development fee of $400,000. This amount shall be paid from bond
proceeds and is in addition to all other amounts payable to the Housing Authority.
11. Upon completion of the Building, the parties agree to negotiate with the
Housing Authority to enter into a management agreement under which the Housing Authority
will manage the Building.
12. The provisions of this Agreement are separate from and in addition to the
provisions of any other agreements between the parties.
13. This Agreement shall take effect on the date first written above and shall
expire on March 31, 2002, unless the Building is under construction or had been completed by
that date, in which case this Agreement shall expire on the date that is three months after the date
the Building is finally accepted from the contractor.
14. Notices shall be provided hereunder as directed in the Pre-Construction
Agreement between the parties, except that the Council President shall be added for the purpose
of notice to the City of Bremerton:
Council President
City Council Office
239 4th Street
Bremerton, Washington 98337
(360} 478-5280
15. This Agreement shall be governed by and construed in accordance with the
laws of the state of Washington. Venue shall be in Kitsap County, Washington.
16. The terms of this Agreement constitute the entire understanding and
agreement between the parties regarding the subject matter hereof and may not be altered or
amended except by a written instrument signed by the parties; PROVIDED that in the event the
Housing Authority enters into an agreement with Kitsap County regarding Phase II Project
-3-
50208968.02
Agreement for the development of the Building , the terms and conditions of this Agreement
shall conform to said agreement.
17. This Agreement is not intended, nor shall it be construed, to create any rights
in third parties.
18. Each party hereby wan'ants that the execution and delivery of this Agreement
and the performance of such party hereunder have been authorized by all necessary actions, that
the person executing this Agreement on behalf of such party is competent and fully authorized to
do so.
-4-
50208968.02
19. The waiver by any party of any failure on the part of another party to perform
in accordance with any of the terms or conditions of this Agreement shall not be construed as a
waiver of any future or continuing failure, whether similar or dissimilar thereto. To be valid,
waivers must be in writing and signed by the party waiving its rights.
DATED this day of ,2000.
KITSAP COUNTY
CONSOLIDATED HOUSING AUTHORITY
By
Its
KITSAP COUNTY
By
Its
THE CITY OF BREMERTON
By
Its
-5-
5020896802
ATTACHMENT 1
II. Bremerton / Kitsap County Regional Government Center
Phase 2 - A/E 'Bond Package' Design Services:
The following description of services is based on the current approved Concept Design Package
by LMN architects dated October 5, 2000 as revised by the October 23, 2000 Rider Hunt Cost
Estimate.
Per the Owner (Kitsap County Consolidated Housing Authority) we have been given a budgeted
fee of $300,000 for A/E design services for Phase 2. This fee, in itself would not be adequate for
full 100% Schematic Design services for the BKCRGC project as defined below. However, the
intent of the Phase 2 A/E 'Bond Package is to provide the Owner (agency) enough schematic
drawings and other documents to allow the participating agencies to achieve a clear
understanding and acceptance of the design and to provide a reasonable basis for analyzing and
preparing a cost estimate. The proposed A/E 'Bond Package' will be an approximately 75%
Schematic Design Package.
*Note: The following description of services outlines a 100% Schematic Design Package. The
proposed 75% SD package will be less developed than the description below but we will tailor
the deliverables to provide a clear and complete enough package to enable the Owner to secure
bonding for the project.
*Schematic A/E Design Services (14 Percent)
In the Schematic Design Phase the A/E Design team provides those services necessary to prepare
Schematic Design Documents consisting of drawings and other documents illustrating the
general scope, scale, and relationship of project components for approval by the agency. Design
should be conceptual in character, based on the requirements developed during the Predesign
Phase, approved by the agency, or program requirements provided by the agency and reviewed
and agreed upon by the A/E. Schematic design includes the following:
Project Administration Services consisting of schematic design administrative functions
including consultation, meetings and correspondence, and progress
design review conferences.
Disciplines Coordination Coordination between the architectural work and engineering work and
other involved consultants for the project. When specialty consultants are
used, additional coordination beyond basic services may be required and
negotiated for appropriate phases of the work.
Document Checking Review and coordination of project documents.
Consulting Permitting Consultations, research of critical applicable regulations, preparation of
Authority written and graphic explanatory materials. The services apply
to applicable laws, statutes, regulations, and codes.
Space Planning Limited workshops with agency heads to prepare space plans showing
department partitions, walls, and door layouts. FFE layouts are N.I.C. for
this phase.
-6-
50208968.02
Architectural Design Services responding to scope of work (program/predesign) requirements
and consisting of preparation of conceptual site and building plans,
schematic sections and elevations, preliminary selection of building
systems and materials, development of approximate dimensions, areas
and volumes.
Structural Design Services consisting of recommendations regarding basic structural
material and systems, analysis, and development of conceptual design
solutions.
Mechanical Design Services consisting of consideration of alternate materials, systems and
equipment, and development of conceptual design solutions for energy
sources/conservation, heating, ventilating and air conditioning (HVAC),
plumbing, fire protection, and general space requirements.
Electrical Design Services consisting of consideration of alternate systems,
recommendations regarding basic electrical materials, systems and
equipment, analysis, and development of conceptual design solutions for
power service and distribution, lighting, communication raceways, fire
detection and alarms, and general space requirements.
Civil/Site Design Services consisting of site planning including layout of site features,
building position, preliminary grading, location of paving for walkways,
driveways and parking, and fencing locations.
Landscape Design Services consisting of consideration and development of concept design
solutions including land forms, lawns, and planting.
Specifications Services consisting of preparation for agency's approval of proposed
development of architectural outline specifications, and coordination of
outline specifications of other disciplines as needed for cost estimate.
Materials Research Services consisting of identification of potential of architectural materials,
systems, and equipment.
Scheduling Services consisting of reviewing and updating previously established
project schedules or initial development of schedules for decision
making, design, and documentation.
Cost Estimating Services consisting of development of a probable construction cost from
quantity surveys and unit costs of building elements for the project. Costs
shall reflect the level of design elements presented in the Schematic
Design documents, plus appropriate design contingencies to encompass
unidentified scope ultimately included in the program. Assist user agency
with analyzing scope, schedule, and budget options to stay within the
MACC.
Presentations Services consisting of appropriate presentation(s) of Schematic Design
documents by the NE to agency representatives. Updated site model.
Rendered Presentation Sketch.
-'7-
5020896802
AGENDA BILL
BREMERTON CITY COUNCIL
17
1. SUBJECT: FOR AGENDA OF: 1/~/01
Puget Sound Energy ORIGINATING DEPT: Admin. Srvs.
Ordinance No. ~O (~O~ ~'~3~ ORIGINATOR:DATE SUBMITTED:Kathleen12/27/00McCluskey
2. CLEARANCES: (comment on back 3. EXHIBITS:
if
ne
ce ss
~~~ Ordinance ~o. ~ 7 50
Public Works & Utili~
Fiscal &
Operations~~~~ ~-
ENDORSEMENT~f INFORMATION APPROVED BY COUNCIL PRES~LD~NT FOR SUBMITTAL:
4. SUMMARY STATEMENT AND REQUIREMENT FOR COUNCIL :
The Puget Sounds Energy Franchise originally terminated in January 2000
and was renewed for a one-year period to allow staff time to renegotiate.
Due to potential Federal and State changes to the power industry city
administration chose to defer negotiations and requests an additional one-
year franchise for the period January 12, 2001 to January 11, 2002.
8. P~ION:
2. ~ob'g to pass ~din~ce ~ ~7~O ~ti~ one year fr~chise to ~get Sold
~er~.
9. RESPONSIBLE OFFICIAL:
ENFORCEMENT OFFICIAL:
EXPIATION DATE:
REVIEW DATE:
10. NOTICE OF ACTION
PULLED TABLED APPROVED DISAPPROVED
COUNCIL DIRECTIVE: DATE:
11. AGENDA BILL NO: 0 / '-- O/O
2. CLEARANCE COMMENTS (cont.):
4. SUMMARY STATEMENT (cont.):
5. IMPACT ON NON-PASSAGE: Puget Power will be operating in city right of
ways without a franchise.
6. IMPACT ON STAFFING, BUDGETS, FACILITIES, EQUIPMENT OR OTHER RESOURCES
None
7. RESEARCH SOURCES:
ORD,r AsC r O. '4 7 5o
AN ORDINANCE granting Puget Sound Energy, A
Washington Corporation, its successors and its assigns, the right,
privilege, authority and franchise to set, erect, construct, support,
attach, connect, and stretch facilities between, maintain, repair,
replace, enlarge, operate, and use facilities in, upon, over, under,
along, across and through the franchise area for purposes of
transmission, distribution and sale of energy for power, heat,
light and any other purpose for which energy can be used; and to
charge and collect tolls, rates and compensation for such energy
and such uses for a period of one year from January 12, 2001 to
January 11, 2002 under the same terms and conditions as
provided in Franchise Ordinance No. 4253 passed by the City
Council the 6~ day of December 1989.
THE CITY OF BREMERTON DOES ORDAIN:
Section 1. Franchise Ordinance No. 4253 is hereby incorporated in its entirety by this
reference, except that Section I 1 thereof shall provide for effective dates of January 12, 2001 to
January 11, 2002. Puget shall have no rights under this Franchise nor shall Puget be bound by the
terms and conditions of this Franchise unless Puget shall, within sixty (60) days after the effective
date of the Ordinance, file with the City its written acceptance of this Ordinance.
Section 2. All references to Puget Sound Power & Light Company shall be read as Puget
Sound Energy, a Washington corporation.
Section 3. This Ordinance shall become effective ten (10) days after passage and
publication.
APPROVED by the City Council of the City of Bremerton on first reading this __
day of ,20__
PASSED by the City Council of the City of Bremerton this __ day of
,20
Council President
APPROVED this ~ day of ,20
LYNN S. HORTON, Mayor
Al'TEST:
KATHLEEN McCLUSKEY, City Clerk
AGENDA BILL
BREMERTON CITY COUNCIL
January 17, 2001
'1. SUBJECT: ORDINANCE NO. FOR AGENDA OF: danuary 24, 2001
ORIGINATING DEPT: Treas u rer,..-;~/'/
AUTHORIZING THE ISSUE OF A $1,250,000 TAX ORIGINATOR: Rich
ANTICIPATION NOTE AND ACCEPTING THE DATE SUBMITTED: JanuaryS, 2001~
PURCHASE OFFER OF BANK OF AMERICA
2. CLEARANCE. S: (~lomment of back if necessary) 3. EXHIBITS:
Dir. Admin. Services,-~, ~I~_.~ Proposed Ordinance
Fiscal and Budget Comm. ,/~,',~ ~ Preliminary Official Statement
Operations
Cash
Flow
Projection
Note Purchase Offer (at second reading)
ENDORSEMENTS .~ INFORMATION ~ APPROVED BY COUNCIL PRESIDENT FOR SUBMITTAL:
4. SUMMARY STATEMENT AND REQUIREMENT FOR COUNCIL ACT, lO'N:
As indicated in the attached documents, the City's General Fund will operate in a deficit cash position at certain times
dudng the year without some form of cash flow financing. Analysis indicates that issuance of a Tax Anticipation
Note, or TAN is the most economical way of financing this cash flow need.
8. RECOMMENDATION:
Motion to approve on first reading the Ordinance authorizing the issue of a Tax Anticipation Note.
Move to pass on second reading Ordinance No. __ authorizing the issue of a Tax Anticipation Note and
accepting the purchase offer of Bank of America.
9. RESPONSIBLE OFFICIAL: Treasurer
ENFORCEMENT OFFICIAL: Mayor
EXPIRATION DATE: Januar~ 31, 2002
REVIEW DATE: N/A
10. NOTICE OF ACTION
PULLED TABLED APPROVED DISAPPROVED AMENDED
COUNCIL DIRECTIVE:
2. CLEARANCE COMMENTS:
5. IMPACT ON NON-PASSAGE:
The City's General Fund will operate for a portion of the year with a negative cash balance which is contrary to
statute.
6. IMPACT ON STAFFING, BUDGETS, FACILITIES, EQUIPMENT OR OTHER RESOURCES:
Included in the 2001 - 2002 Budget.
7. RESEARCH SOURCES:
Cash flow projections. Bond counsel. Negotiations with underwriting bank.
1ST DRAFT 1/8/01
For Discussion Purposes Only
CITY OF BREMERTON, WASHINGTON
ORDINANCE NO.
AN ORDINANCE of the City of Bremerton Washi.,ogton relating
to the incurrence of indebtedness; provid~e sale and
issuance of $1,250,000 principal am~anticipation notes,
2001, to pay City expenses pendin fg(.f, ogthe receipt of general City
taxes; providing for the date, denominations, form, terms,
registration privileges, maturity, interest rates and covenants of the
notes; and providing for the sale and delivery of such notes to Banc
of America Securities LLC
WHEREAS, the City Council of the City of Bremerton (the "City") finds that the
periodic collections of sales, excise and general ad valorem taxes and other revenue in
2001 will not be sufficient to meet necessary City expenses as they are incurred in 2001,
and
WHEREAS, the City Council of the City deems it to be in the best interest of the
City that the City borrow money and issue and sell short-term obligations in the form of
tax anticipation notes pursuant to chapter 39.50 RCW for the purpose of financing such
expenses pending receipt of taxes and other revenue collected by the City; and
WHEREAS, the incurrence of such 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, Banc of America Securities LLC (the "Purchaser") has offered, by
way of the Purchase Agreement (the "Purchase Agreement"), to purchase such limited
tax anticipation notes upon the terms and conditions hereinafter set forth; NOW,
THEREFORE,
1ST DRAFT 1/8/01
For Discussion Purposes Only
THE CITY OF BREMERTON DOES ORDAIN AS FOLLOWS:
Section 1. Finding, Purpose and Description of Notes. The City authorizes the
sale and issuance of its "Tax Anticipation Notes, 2001" (the "Notes") for the purpose of
financing City expenses pending receipt of taxes and other revenue collected by the City
and to pay certain "incidental costs and costs related to the sale and issuance" (as defined
in RCW 39.46.070) of the Notes.
The Notes shall be in the aggregate principal amount of $1,250,000; shall be
dated February 1, 2001; shall mature on January 31, 2002; shall bear interest (computed
on the basis of a 360-day year of twelve 30-day months) from their date at the rate of
__ % per annum, payable at maturity. The Notes shall be issued in fully registered
form as to both principal and interest; shall be in the denomination of $50,000 each or
any integral multiple thereof; shall be numbered separately in such manner and with any
additional designation as the fiscal agencies of the State of Washington in Seattle,
Washington, and New York, New York (collectively, the "Registrar"), deem necessary
for purposes of identification.
If any Note is not paid upon proper presentment at its maturity date, the City shall
have the obligation to pay interest at the same rate from and after such maturity date until
such Note, both principal and interest, is paid in full.
The Notes shall be negotiable instruments to the extent provided by
RCW 62A.8-102 and RCW 62A.8-105.
On the date of issue of the Notes, all Notes shall be issued in the form of a single
certificate, which certificate shall be registered in the name of The Depository Trust
Company or any successor thereto engaged to operate a book-entry system for recording
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the beneficial ownership of the Notes, as Custodian (the "Custodian"), or its nominee,
and delivered to the Custodian. The Custodian shall hold the Note certificate in fully
immobilized form for the benefit of the beneficial owners of the Notes (the "Beneficial
Owners") pursuant to the Blanket Issuer Letter of Representations, dated November 19,
1997, between the City and the Custodian (the "Letter of Representations"), until the
earliest to occur of either (1) the date of maturity of the Notes evidenced by such
certificate, at which time the Custodian shall surrender such certificate to the Registrar
for payment of the principal of and interest on such Notes coming due on such date, and
the cancellation thereof; (2) the fifth business day following the date of receipt by the
Registrar of the City's request to terminate the book-entry system of registering the
beneficial ownership of the Notes (the "Book-Entry Termination Date"); or (3) the date
the City determines to utilize a new Custodian for the Notes, at which time the old
Custodian shall (provided the City is not then in default of any payment then due on the
outstanding Notes) surrender the immobilized certificate to the Registrar for transfer to
the new Custodian and cancellation as herein provided.
For so long as any outstanding Notes are registered in the name of the Custodian or
its nominee and held by the Custodian in fully immobilized form as described in this
Section 1, the rights of the Beneficial Owners shall be evidenced solely by an electronic
and/or manual entry made from time to time on the records established and maintained by
the Custodian in accordance with the Letter of Representations, and no certificates
evidencing such Notes shall be issued and registered in the name of any Beneficial
Owner or such Beneficial Owner's nominee.
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The City may terminate the "book-entry" system of registering ownership of the
Notes at any time (provided the City is not then in default of any payment then due on the
outstanding Notes) by delivering to the Registrar: (a) a written request that it issue and
deliver Note certificates to each Beneficial Owner or such Beneficial Owner's nominee
on the Book-Entry Termination Date; (b) a list identifying the Beneficial Owners as to
both name and address; and (c) a supply of Note certificates, if necessary for such
purpose. Upon surrender to the Registrar of the immobilized certificates evidencing all
of the then outstanding Notes, the Registrar shall issue and deliver new certificates to
each Beneficial Owner or such Beneficial Owner's duly appointed agent, naming such
Beneficial Owner or such Beneficial Owner's nominee as the Owner thereof. Such
certificates may be in any integral multiple of $50,000. Following such issuance, the
Owners of such Notes may transfer and exchange such Notes in accordance with
Section 9 hereof.
Neither the City nor the Registrar shall have at any time any responsibility or
liability to any Beneficial Owner of any Notes or to any other person for any error,
omission, action or failure to act on the part of the Custodian with respect to payment,
when due, to the Beneficial Owner of the principal and interest on the Notes, proper
recording of beneficial ownership of Notes, proper transfers of such beneficial
ownership, or any notices to Beneficial Owners or any other matter pertaining to the
Notes.
Section 2. Place, Manner and Medium of Payment. Both the principal of and
interest on the Notes shall be payable in lawful money of the United States of America.
Prior to the Book-Entry Termination Date, the principal and interest on the Notes shall be
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paid by the Registrar to the Custodian as the Owner (hereinafter defined) thereof, for the
benefit of the Beneficial Owners thereof, in accordance with the Letter of
Representations. From and after the Book-Entry Termination Date, principal of and
interest on the Notes shall be paid to the persons who are named as the registered owners
of the Notes (the "Owners") on the registration books for the Notes (the "Note Register")
maintained by the Registrar only upon presentation and surrender of such Owners' Notes
upon maturity, at the principal corporate trust office of either Registrar, at the option of
the Owners.
Section 3. No Redemption; Open Market Purchase. The Notes shall not be
subject to redemption prior to maturity.
The City reserves the right to purchase any or all of the Notes on the open market
at any time and at any price. All Notes purchased by the City shall be surrendered to the
Registrar for cancellation.
Section 4. Debt Limit Not Exceeded. The City finds and covenants that the
Notes are issued within all constitutional and statutory debt limitations presently
applicable to the City.
Section 5. Pledge of Full Faith, Credit and Resources. The Notes are limited tax
general obligations of the City. Unless the principal of and interest on the Notes are paid
fi:om other sources, so long as the Notes are outstanding, the City hereby irrevocably
covenants to include in its budgets and to levy taxes annually within the constitutional
and statutory limitations provided by law without a vote of the people upon all property
within the City subject to taxation in amounts which, together with any other money
legally available therefor, shall be sufficient to pay the principal and interest on the Notes
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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 any tax levied and collected as
provided for herein for the payment of the principal of and interest on the Notes shall be
within and as a part of the tax levy permitted the City without a vote of the people and
that a sufficient portion of the receipts of any such tax levy or levies to be made so long
as the Notes are outstanding, together with any other money legally available therefor,
shall be and is hereby set aside, pledged and appropriated for the payment of the principal
of and interest on the Notes as the same shall become due.
Section 6. Form of Notes. The Notes shall be typewritten, printed or
lithographed on good bond paper in a form consistent with this ordinance and
Washington law.
Section 7. Execution of Notes. The Notes shall be signed on behalf of the City
with the facsimile or manual signatures of the Mayor and the City Clerk, and shall have
the seal of the City impressed or a facsimile thereof imprinted thereon.
In case either or both of the officers who shall have executed any Note shall cease
to be such officer or officers of the City before the Note so signed shall have been
authenticated or delivered by the Registrar or issued by the City, such Note nevertheless
may be authenticated, delivered and issued and upon such authentication, delivery and
issuance, shall be as binding upon the City as though those who signed the same had
continued to be such officers of the City. Any Note also may be signed and attested on
behalf of the City by such persons as at the actual date of execution of such Note shall be
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the proper officers of the City although at the original date of such Note such persons
were not such officers of the City.
Section 8. Authentication and Delivery_ of Notes by Registrar. The Registrar are
authorized and directed, on behalf of the City, to authenticate and deliver Notes initially
issued or transferred or exchanged in accordance with the provisions of such Notes and
this ordinance.
Only such Notes as shall bear thereon a "Certificate of Authentication" manually
executed by an authorized signatory of the Registrar shall be valid or obligatory for any
purpose or entitled to the benefits of this ordinance. Such Certificate of Authentication
shall be conclusive evidence that the Notes so authenticated have been duly executed,
authenticated and delivered hereunder and are entitled to the benefits of this ordinance.
The Registrar shall be responsible for its representations contained in the
Certificate of Authentication on the Notes.
Section 9. Registration; Transfer and Exchange. The Registrar shall keep, or
cause to be kept, the Note Register at its principal corporate trust office.
The City and the Registrar, each in its discretion, may deem and treat the Owner
of each Note as the absolute owner thereof for all purposes, and neither the City nor the
Registrar shall be affected by any notice to the contrary. Payment of any such Note shall
be made only as described in Section 2 hereof, but such registration may be transferred as
herein provided. All such payments made as provided in Section 2 hereof shall be valid
and shall satisfy and discharge the liability of the City upon such Note to the extent of the
amount or amounts so paid.
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The registered ownership of any Note may be transferred. Prior to the Book-
Entry Termination Date, the beneficial ownership of the Notes may only be transferred
on the records established and maintained by the Custodian. On and after the Book-Entry
Termination Date, no transfer of any Note shall be valid unless it is surrendered at any
principal corporate trust office of the Registrar, with the assignment form appearing on
such Note duly executed by the Owner or such Owner's duly authorized agent, in a
manner satisfactory to the Registrar. Upon such surrender, the Registrar shall cancel the
surrendered Note and shall authenticate and deliver, without charge to the Owner or
transferee therefor (other than any governmental fees or taxes payable on account of such
transfer), a new Note or Notes (at the option of the new Owner), of the same maturity and
interest rate and for the same aggregate principal amount, in any authorized
denomination, naming as Owner the person or persons listed as the assignee on the
assignment form appearing on the surrendered Note, in exchange for such surrendered
and cancelled Note.
On and after the Book-Entry Termination Date, any Note may be surrendered at
the principal corporate trust office of the Registrar and exchanged, without charge, for an
equal aggregate principal amount of Notes, in any authorized denomination. The
Registrar shall not be obligated to transfer or exchange any Note during the 15 days
preceding the maturity date.
The Registrar may become the Owner of any Note with the same rights it would
have if it were not a Registrar and, to the extent permitted by law, may act as depository
for and permit any of its officers or directors to act as a member of, or in any other
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capacity with respect to, any committee formed to protect the rights of the Owners of the
Notes.
The City covenants that, until all Notes shall have been surrendered and
cancelled, it will maintain a system of recording the ownership of each Note that
complies with the provisions of the Internal Revenue Code of 1986, as amended (the
"Code").
Section 10. Mutilated, Lost, Stolen or Destroyed Notes. If any Note becomes
mutilated, lost, stolen or destroyed, the Registrar may authenticate and deliver a new
Note of the same maturity and interest rate and of like tenor and effect in substitution
therefor, all in accordance with law. If such mutilated, lost, stolen or destroyed Note has
matured, the City at its option, may pay the same without the surrender thereof.
However, no such substitution or payment shall be made unless and until the applicant
shall furnish (a) evidence satisfactory to the Registrar of the destruction or loss of the
original Note and of the ownership thereof, and (b) such additional security, indemnity or
evidence as may be required by or on behalf of the City. No substitute Note shall be
furnished unless the applicant shall reimburse the City and the Registrar for their
respective expenses in the furnishing thereof. Any such substitute Note so furnished shall
be equally and proportionately entitled to the security of this ordinance with all other
Notes issued hereunder.
Section 11. Defeasance. If money and/or "Government Obligations" (as such
obligations are defined in Chapter 39.53 RCW, as now in existence or hereafter
amended) maturing at such times(s) and beating such interest to be earned thereon
(without any reinvestment thereof) as will provide a series of payments which shall be
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sufficient, together with any money initially deposited, to provide for the payment of the
principal of and interest on all or a portion of the Notes, when due in accordance with
their terms in accordance with a refunding plan adopted by the City, are set aside in a
special fund (hereinafter called the "trust account") to effect such payment and are
pledged irrevocably for the purpose of effecting such payment, then no further payments
need be made into the Note Fund for the payment of the principal of and the interest on
such Notes, 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 Notes shall no longer
be deemed to be outstanding hereunder.
Section 12. Sale of the Notes. The Purchaser has presented the Purchase
Agreement to the City pursuant to which the Purchaser has offered to purchase the Notes,
under the terms and conditions provided in the Purchase Agreement, which written
Purchase Agreement is on file with the City Clerk and is incorporated herein by this
reference. The City Council finds that entering into the Purchase Agreement is in the
City's best interest and therefore accepts the offer contained in the Purchase Agreement
and authorizes the execution of the Purchase Agreement by City officials.
The Notes will be prepared at City expense and will be delivered to the Purchaser
in accordance with the terms of the Purchase Agreement with the approving legal opinion
of the City's bond counsel relative to the issuance of the Notes printed on each Note or
attached thereto. Bond counsel has not been engaged to participate in the preparation or
review of, or express any opinion concerning the completeness or accuracy of the official
statement or other disclosure documentation used in connection with the offer or sale of
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the Notes by any person, and bond counsel's opinion shall so state. Bond counsel has not
been retained to monitor, and shall not be responsible for monitoring, the City's
compliance with any federal law or regulations to maintain the tax-exempt status of the
interest on the Notes.
Section 13. Delivery of Notes; Temporary Notes. The proper City officials,
including the City Treasurer, are authorized and directed to execute and/or approve, as
appropriate, all documents, including but not limited to, the final Official Statement
pertaining to the Notes, and to do everything necessary for the preparation and delivery
of a transcript of proceedings pertaining to the Notes, and the printing, execution and
prompt delivery of the Notes to the Purchaser and for the proper application and use of
the proceeds of the sale thereof.
If definitive Notes are not ready for delivery by the date established for closing
(the "Closing"), the City Treasurer, upon the approval of the Purchaser, may cause to be
issued and delivered to the Purchaser one or more temporary Notes with appropriate
omissions, changes and additions. Any temporary Note or Notes shall be entitled and
subject to the same benefits and provisions of this ordinance with respect to the payment,
security and obligation thereof as definitive Notes authorized hereby. Such temporary
Note or Notes shall be exchangeable without cost to the Owners thereof for definitive
Notes when the latter are ready for delivery.
Section 14. Application of Note Proceeds. The accrued interest on the Notes
received by the City upon the sale of the Notes, if any, shall be deposited into the General
Fund and shall be applied to the payment of interest coming due on the Notes. The
principal proceeds of the Notes shall be deposited in the General Fund of the City and
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used solely for the purpose of paying the cash flow deficits in the City's General Fund
resulting from budgeted expenditures, and any interest received from the deposit or
investment of such proceeds shall be applied and used solely for such purposes.
Section 15. Permitted Financing of Cumulative Cash Flow Deficit. Based upon
the reasonably expected amounts of sales, excise and general ad valorem property taxes
and other revenue to be collected in 2001 (including investment proceeds of the Notes)
and that are expected to be available to make General Fund expenditures in 2001
(computed by treating a reasonably working capital reserve in an amount not exceeding
5% of the total General Fund expenditures in the prior fiscal year as not being available
to make those expenditures), the City Council finds that the principal amount of the
Notes does not exceed the maximum anticipated "cumulative cash flow deficit" (as
defined by Section 148 of the Code, and applicable Treasury Regulations thereunder)
expected to occur in the City's General Fund during 2001 and that is to be financed with
the proceeds of the Notes.
Section 16. 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 Notes 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 Notes 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 Notes or of its other money at any time during the
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term of the Notes which would cause the Notes to be "arbitrage bonds" within the
meaning of Section 148 of the Code.
The City covenants that, if all the proceeds of the Notes have not been spent
within six months from the date of issuance of the Notes, it will calculate or cause to be
calculated, and shall rebate to the United States, all earnings from the investment of Note
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 Notes, 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 Notes or
any other funds held under this ordinance which would cause any Note 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.
Section 17. Preliminary Official Statement Declaration. The City has been
provided with copies of a preliminary official statement dated January __, 2001 (the
"Preliminary Official Statement"), prepared in connection with the sale of the Notes. For
the sole purpose of the Purchaser's compliance with Securities and Exchange
Commission Rule 15c2-12(b)(1), the City "deems final" the Preliminary Official
Statement, as of its date, except for the omission of information on offering prices,
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interest rates, selling compensation, delivery dates, ratings, other terms of the Notes
dependent on such matters.
Section 18. Undertaking to Provide Continuing Disclosure. This section
constitutes the City's written undertaking for the benefit of the Owners and Beneficial
Owners of the Bonds required by subsection (b)(5)(i) of Rule 15c2-12 (the "Rule") of the
United States Securities and Exchange Commission (the "SEC").
The City hereby agrees to provide or cause to be provided to each then existing
nationally recognized municipal securities information repository designated by the SEC
("NRMSIR") and to the state infoImation depository ("SID"), if one is created, the
following annual financial information and operating data (collectively, the "Annual
Financial Information") for each prior fiscal year, commencing with the fiscal year
ending December 31,2001, on or before the last day of the ninth month following the end
of such prior fiscal year:
(a) Annual financial statements prepared in accordance with the
generally accepted accounting principles applicable to governmental units, as such
principles may be changed from time to time and as permitted by state law; which
statements will not be audited, except that if and when audited financial statements are
otherwise prepared and available to the City, they will be provided (the "Annual
Financial Statements");
(b) Authorized, issued and outstanding balance of general obligations
bonds;
(c) The assessed valuation for the fiscal year
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(d) The regular property tax levy rate and regular property tax levy
rate limit for the fiscal year; and
(e) A narrative explanation of the reasons for any amendments to this
Section 14 made during the previous fiscal year and the impact of such amendments on
the Annual Financial Information being provided.
In its provision of such financial information and operating data, the City may
cross-reference to any "final official statement" (as defined in the Rule) available from
the Municipal Securities Rulemaking Board (the "MSRB") or any other documents
theretofore provided to each then existing NRMSIR or the SID, if one is created.
If not submitted as part of the Annual Financial Information, then when and if
available, the City shall provide its Annual Financial Statements, which shall have been
audited by such auditor as shall be then required or permitted by the State law, to each
then existing NRMSIR and to the SID, if one is created.
The City further agrees to provide or cause to be provided, in a timely manner, to
the SID, if one is created, and to either the MSRB or each then existing NRMSIR, notice
of any of the following events with respect to the Notes, if material:
1. Principal and interest payment delinquencies;
2. Non-payment related defaults;
3. Unscheduled draws on debt service reserves reflecting financial
difficulties;
4. Unscheduled draws on credit enhancements reflecting financial
difficulties;
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5. Substitution of credit or liquidity providers, or their failure to
perform;
6. Adverse tax opinions or events affecting the tax-exempt status of the
Notes;
7. Modifications to rights of the Owners of the Notes;
8. Optional redemptions of the Notes;
9. Defeasances of the Notes;
10. Release, substitution or sale of property securing repayment of the
Notes; and
11. Rating changes.
The City also agrees to provide or cause to be provided, in a timely manner, to the
SID, if one is created, and to either the MSRB or each then existing NRMSIR, notice of
its failure to provide the Annual Financial Information for the prior fiscal year on or
before the last day of the ninth month following the end of such prior fiscal year.
After the issuance of the Notes, so long as the interests of the Owners or Beneficial
Owners of the Notes will not be materially impaired thereby, as determined by a party
unaffiliated with the City (including, without limitation, a trustee for the Owners,
nationally recognized bond counsel or other counsel familiar with the federal securities
law), or pursuant to a favorable "no-action letter" issued by the SEC, this Section 18 may
only be amended in connection with any change in legal requirements, change in law, or
change in the identity, nature or status of the obligated person, or type of business
conducted, and only in such a manner that the undertaking of the City, as so amended,
would have complied with the requirements of the Rule at the time of the primary
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offering, after taking into account any amendments or interpretations of the Rule, as well
as any change in circumstances.
The City's obligations to provide Financial Information and notices of certain
events shall terminate without amendment upon the defeasance, prior redemption or
payment in full of all of the then outstanding Notes. This Section 18 or any provision
hereof, shall be null and void if the City (i) obtains an opinion of nationally recognized
bond counsel or other counsel familiar with the federal secur/ties laws to the effect that
those portions of the Rule which require this Section 18 or any such provision are invalid,
have been repealed retroactively or otherwise do not apply to the City; and (ii) notifies
and provides the SID, if any, and either the MSRB or each then existing NRMSIR with
copies of such opinion.
The right of each Owner and Beneficial Owner of Notes to enforce the provisions
of this Section 18 shall be limited to the right to obtain specific enforcement of the City's
obligations under this Section 18, and any failure by the City to comply with the
provisions of this undertaking shall not be a default with respect to the Notes under this
ordinance.
The City Treasurer is authorized and directed to take such further action on behalf
of the City as may be necessary, appropriate or convenient to carry out the requirements
of this Section 18.
Section 19. Contract; Severability. The covenants contained in this ordinance
shall constitute a contract between the City and the Owners of each and every Note. The
City unconditionally covenants that it wilt keep and perform all of the covenants of the
Notes and this ordinance. If any one or more of the provisions of this ordinance shall be
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declared unconstitutional or invalid for any reason, such decision shall not affect the
validity of the remaining provisions of this ordinance or the Notes, and this ordinance and
the Notes shall be construed and enforced as if such unconstitutional or invalid provision
had not been contained herein.
Section 20. Effective Date. This ordinance shall take effect and be in full force
ten days after passage and publication of an approved summary, consisting of the title.
APPROVED by the City Council of the City of Bremcrton, Washington, the 17th
day of January, 2001.
PASSED by the City Council of the City of Bremerton, Washington, this 24th day
of January, 2001.
JOHN LAW, Council President
APPROVED this __ day of January, 2001.
LYNN HORTON, Mayor
ATTEST:
Kathleen McCluskey, City Clerk
APPROVED AS TO FORM:
By
Judith Andrews, Bond Counsel
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PUBLISHED:
EFFECTIVE DATE:
ORDINANCE NO.
19
PRELIMINARY OFFICIAL STATEMENT DA TED JANUARY 16, 2001
BOOK-ENTRY ONLY
NEW iSSUE
NEGOTIATED RATING: Not Applied For
In the opinion of Bond Counsel, as of the Date of Issue, and assuming the City fulfills its covenant to comply with certain requirements of the Internal Revenue
Code of 1986, as amended (the ~Code") that must be met subsequent to the issuance of the Notes: interest on the Notes is excluded from gross income for
federal income tax purposes, and is not an item of tax preference for purposes of determining the alternative minimum tax on individuals and corporations; and the
Notes are not ~qualified tax-exempt obligations' for purposes of the partial interest expense deduction available under Section 265 of the Code. None of the
interest expense incurred by banks and other financial institutions allocable to the purchase of carrying of the Notes may be deducted by such institutions. See
"TAX EXEMPTION" and "OTHER TAX CONSEQUENCES" herein.
CITY OF BREMERTON, WASHINGTON
$1,250,000
TAX ANTICIPATION NOTES, 2001
DATED: February 1, 2001 DUE: January 31, 2002
The City's Tax Anticipation Notes, 2001 (the "Notes"), are issued in fully registered form, and will be fully registered in the
name of Cede & Co., as Note owner and nominee for The Depository Trust Company ("DTC"), New York, New York. DTC will
act as securities depository for the Notes. The Notes will be initially issued in book-entry form only in the value of $50,000 or
any integral multiple thereof. Purchasers will not receive certificates representing their interest in the Notes purchased. The
Notes bear interest from their date payable at maturity. The principal of and interest on the Notes are payable by the fiscal
agency of the State of Washington, currently The Bank of New York, New York, New York and, (the "Fiscal Agent" or
"Registrar"). For so long as the Notes remain in a "book-entry only" transfer system, the Fiscal Agent will make such
payments only to DTC, which will in turn remit such principal and interest to the DTC participants for subsequent
disbursement to Beneficial Owners of the Notes as described in Appendix B "DTC AND BOOK-ENTRY SYSTEM" hereto."
MATURITY
Due Amount Rate Yield or Price
January 31, 2002 $ 1,250,000' %
The Notes will not be subject to redemption prior to their stated maturity.
The Notes are limited tax general obligations of the City. The City has irrevocably covenanted that, unless the principal of
and interest on the Notes are paid from other sources, so long as the Notes are outstanding, the City will levy taxes annually
within the constitutional and statutory limitations provided by law without a vote of the people upon all of the property in the
City subject to taxation in amounts which, together with any other money legally available therefor, shall be sufficient to pay
the principal and interest on the Notes as the same shall become due. The City has irrevocably pledged its full faith, credit
and resources to the annual levy and collection of such taxes and for the prompt payment of such principal and interest. See
"DESCRIPTION OF THE NOTES - Security" herein.
The City has designated the Notes as "qualified tax-exempt obligations" under the Internal Revenue Code of 1996, as
amended, for banks, thrift institutions and other financial institutions. See "OTHER TAX CONSEQUENCES" herein.
The Notes are offered by the Underwriter when, as, and if issued, subject to the approving legal opinion of Gottlieb, Fisher &
Andrews, PLLC, Bond Counsel, Seattle, Washington, a copy of which opinion will be delivered with the Notes. The Notes in
definitive book-entry form will be ready for delivery through the facilities of DTC in New York, New York, on or around
February 8, 2001.
This cover page contains certain information for quick reference only. It is not a summary of this issue. Investors must read
the entire Official Statement to obtain information essential to making an informed investment decision.
Banc of America Securities LLC
*Preliminary subject to change
Representations
The Underwriter has provided the following sentence for inclusion in this Official Statement. The Underwriter
has reviewed the information in this Official Statement in accordance with, and as part of, its responsibilities to
investors under the federal securities laws as applied to the facts and circumstances of this transaction, but the
Underwriter does not guarantee the accuracy or completeness of such information.
The delivery of this Official Statement does not imply that the information contained herein is correct as of any
time subsequent to the date of the Official Statement as shown on the cover page. Neither the City nor the
Underwriter has authorized any dealer, broker, salesperson or other persons to give any information or make any
representations other than those made in this Official Statement, and, if given or made, such other information or
representations must not be relied upon as having been authorized by the City or the Underwriter. This Official
Statement does not constitute an offer to sell, nor shall there be any sale of the Notes by any person in any
jurisdiction in which it is unlawful for such person to make such a sale.
Disclosure Statement
The City will deliver to the Underwriter at the time of delivery of the Notes a signed statement substantially to
the effect that this Preliminary Official Statement, as of its date and as of the date of the Notes, neither contains
any untrue statement of a material fact nor omits to state any material fact necessary to make the statements
therein, in light of the circumstances under which they were made, not misleading in any material respect and, to
its knowledge, that there has not been any material adverse change in the normal operations or financial
condition of the City nor, to the best of the City's knowledge, in the general economy of the City since the date
of the Preliminary Official Statement.
This Preliminary Official Statement, as of its date, is in a form "deemed final" by the. City for purposes of SEC
Rule 15c2-12(b)(1) but is subject to revision, amendment, and completion in a final Official Statement which
will be available within seven days of the sale date.
Secondary Market
It has been the practice of the Underwriter to maintain a secondary market in municipal Notes which it sells. The
Underwriter intends to engage in secondary market trading of the Notes, subject to applicable securities laws.
The Underwriter, however, is neither obligated to engage in secondary trading nor to repurchase any of the Notes
at the request of the registered owners thereof and no assurance can be given that a secondary market for the
Notes will be available.
In connection with the offering of the Notes, the Underwriter may over-allot or effect transactions that stabilize
or maintain the market price of the Notes at a level above that which might otherwise prevail in the open market.
Such stabilizing, if commenced, may be discontinued at any time.
ii
CITY OF BREMERTON
Kitsap County, Washington
239 Fourth Street
Bremerton, Washington 98337
(360) 478-5290
MAYOR
Term Expires
December 31
Lyrm Horton 2001
CITY COUNCIL
John Law Chairperson 2001
Wayne Olsen Member 2001
Carol Arends Member 2001
Mike Shepherd Member 2001
Cecil McConnell Member 2003
Conrad Esser Member 2003
David Farr Member 2003
Edward Rollman Member 2003
Jim Reed Member 2001
APPOINTED CITY OFFICIALS
Richard Hanna Treasurer
Kathleen McCluskey Administrative Services Director/City Clerk
BOND COUNSEL
Gottlieb, Fisher & Andrews, PLLC
Seattle, Washington
UNDERWRITER
Banc of America Securities LLC
Seattle, Washington
iii
57
TABLE OF CONTENTS
Page
In~oduction .............................................................................................................................................................. 1
Description of ~c Notes ........................................................................................................................................... [
Debt Payment Record ............................................................................................................................................... 2
Future Financing ....................................................................................................................................................... 2
Assessed Valuation Determination ........................................................................................................................... ;3
Tax Collection Procedure ......................................................................................................................................... 3
Authorization of Debt ............................................................................................................................................... 3
General Obligation Indebtedness ............................................................................................................................. 3
Limits on Amount of General Obligation Indebtedness .......................................................................................... 4
Authorization of Short-Term Debt ........................................................................................................................... 4
Taxing Powers and Limitations ................................................................................................................................ 5
Initiative and Referendum ........................................................................................................................................ 5
Auditing of City Finances ......................................................................................................................................... 6
Authorized Investments ............................................................................................................................................ 6
Net Direct Debt and Estimated Net Overlapping General Obligation Debt ............................................................ 8
Bonded Debt Ratios of the City ................................................................................................................................ 8
Statutory Debt Limit Calculation ............................................................................................................................. 9
Ad Valorem Tax Record of the City ........................................................................................................................ 9
Ad Valorem Property Tax Rates in the City .......................................................................................................... 10
Major Property Taxpayers ...................................................................................................................................... 10
Comparative Statement of General Fund Revenues and Expenditures ................................................................. 10
Contingency Reserve Fund Year-End Balances ..................................................................................................... 11
General Fund Budget for 2000 and 2001 ............................................................................................................... 11
Schedule of General Obligation Bond Debt Service for the City .......................................................................... 13
City Profile ............................................................................................................................................................. 13
General and Economic Information ....................................................................................................................... 15
Preservation of Tax Exemption .............................................................................................................................. 19
Conflicts of Interest ................................................................................................................................................ 19
Tax Exemption ....................................................................................................................................................... 19
Other Tax Consequences ........................................................................................................................................ 19
Absence of Material Litigation ............................................................................................................................... 20
Approval of Bond Counsel ..................................................................................................................................... 20
Continuing Disclosure ............................................................................................................................................ 20
Underwriting ........................................................................................................................................................... 22
Concluding Statement ............................................................................................................................................. 22
Form of Legal Opinion ........................................................................................................................... Appendix A
DTC and Book-Entry System ................................................................................................................. Appendix B
iv
PRELIMINARY OFFICIAL STATEMENT
CITY OF BREMERTON, WASHINGTON
$1,250,000'
TAX ANTICIPATION NOTES, 2001
INTRODUCTION
The City of Bremerton, Washington (the "City"), a municipal corporation duly organized and existing under and
by virtue of the laws of the State of Washington, furnishes this Official Statement in connection with the offering
of $1,250,000' principal amount of Tax Anticipation Notes, 2001 (the "Notes"). This Official Statement
provides information concerning the City and the Notes.
DESCRIPTION OF THE NOTES
Principal Amount, Date, Interest Rate, and Maturity
The Notes will be issued in the principal amount of $1,250,000' and will be dated and bear interest from
February 1,2001 until their stated maturity. The Notes will mature on January 31, 2002, and will bear interest,
payable at maturity, at the rate of % per annum. Interest on the Notes will be computed on the basis of a
360-day year of twelve 30-day months.
Optional Redemption
The City has not reserved the right to redeem the Notes prior to maturity.
Paying Agent
Principal of and interest on the Notes will be payable by the State fiscal agency (the "Fiscal Agent" or
"Registrar") in New York, New York, currently The Bank of New York, (or such other fiscal agency or agencies
as the City Treasurer may from time to time designate). So long as Cede & Co. is the registered owner of the
Notes, principal of and interest on the Notes are payable by wire transfer by the Registrar to DTC, which, in turn,
is obligated to remit such principal and interest to the DTC Participants for subsequent disbursement to the
Beneficial Owners of the Notes, as further described in Appendix B "DTC AND BOOK-ENTRY SYSTEM."
Form, Denomination and Registration
The Notes will be issued in fully registered form as to both principal and interest in the denomination of $50,000
or any integral multiple thereof. The Notes, when issued, will be registered in the name of Cede & Co., as
registered owner and nominee of The Depository Trust Company, New York, New York ("DTC").
Book-Entry Transfer System
DTC will act as securities depository for the Notes. Individual purchases may be made in book-entry form only.
Purchasers will not receive certificates representing their interest in the Notes purchased. So long as Cede & Co.
is the registered owner of the Notes, as nominee of DTC, references herein to the registered owners or Note
owners will mean Cede & Co. and will not mean the "Beneficial Owners" of the Notes. In this Official
Statement, the term "Beneficial Owner" will mean the person for which a DTC participant acquires an interest in
the Notes. See Appendix B "DTC AND BOOK-ENTRY SYSTEM" hereto.
* Preliminary, subject to change.
1
Termination of Book-Entry Transfer System
If the City is unable to retain a qualified successor to DTC or the City has determined that it is in the best interest
of the City not to continue the book-entry system of transfer or that interests of the Beneficial Owners of the
Notes might be adversely affected if the book-entry system of transfer is continued, the City will execute,
authenticate and deliver at no cost to the Beneficial Owners of the Notes or their nominees, Notes in fully
registered form, in the denomination of $50,000 or any integral multiple thereof. Thereafter, the principal of and
interest on the Notes will be payable to the persons who are named as registered owners of the Notes on the
registration books for the Notes upon presentation and surrender thereof at the principal corporate trust office of
the Registrar, and the Notes will be transferable as provided in the Note Ordinance.
Authorization
The Notes are issued in accordance with the provisions of the Constitution and applicable statutes of the State of
Washington, pursuant to Ordinance No. (the "Ordinance") of the City Council, adopted on January __,
2001.
Security
The Notes are limited tax general obligations of the City. Unless the principal of and interest on the Notes are
paid from other sources, so long as the Notes are outstanding, the City has irrevocably covenanted to levy taxes
annually within the constitutional and statutory limitations provided by law without a vote of the people upon all
of the property within the City subject to taxation in amounts which, together with any other money legally
available therefor, shall be sufficient to pay the principal and interest on the Notes as the same shall become duc.
The City has irrevocably pledged its full faith, credit and resources to the annual levy and collection of such
taxes and for the prompt payment of such principal and interest.
The City has irrevocably covenanted that any tax levied and collected as provided for in the Note Ordinance for
the payment of the principal of and interest on thc Notes shall be within and as a part of the tax levy permitted
thc City without a vote of the people and that a sufficient portion of each such annual tax levy to bc made so long
as the Notes are outstanding, together with any other money legally available therefor, will be and is thereby set
aside and pledged for the payment of thc principal of and interest on the Notes as the same shall become due.
Purpose
The proceeds of the Notes will be used to provide cash flow management of the City's General Fund revenues
and expenditures, in anticipation of the collection of sales, excise and general ad valorem property taxes and
other money due the City's General Fund in 2001, and paying the costs of issuance and sale of the Notes, all as
approved by the City Council.
Failure to Redeem the Notes
If any Note is not paid when properly presented at its maturity, the City is obligated to pay interest on that Note
at the same rate provided in the Note from and after its maturity until that Note, both principal and interest, is
paid in full.
DEBT PAYMENT RECORD
The City has always promptly met principal and interest payments on outstanding obligations when due.
Additionally, no refunding Bonds have been issued for the purpose of preventing an impending default.
FUTURE FINANCING
The City is issuing $3A million of Limited Tax General Obligation Bonds sometime in the first half of
.............. ,,~,oLj ................................... The City has no additional plans for long-term debt
issuance over the next 12 months.
2
ASSESSED VALUATION DETERMINATION
In the State of Washington, the County Assessor (the "Assessor") determines the value of all real and personal
property throughout the County (including the City) which is subject to ad valorem taxation. The Assessor's
duties and methods of determining value are prescribed and controlled by statute and by detailed regulations
promulgated by the Department of Revenue of the State of Washington. For tax purposes the assessed value of
property is set at 100% of its actual value. Property in Kitsap County is revalued annually based on market sales
and receives an on-site appraisal every six years. The property is listed by the Assessor on a tax roll at its current
assessed value and the tax roll is filed in the Assessor's office.
The Assessor's determinations are subject to revision by the County Board of Equalization and, for certain
property, subject to further revision by the State Board of Equalization. After all administrative procedures are
completed, the taxing unit receives the Assessor's final certificate of assessed value of property within the taxing
unit.
TAX COLLECTION PROCEDURE
Property taxes are levied in specific amounts, and the rate for all taxes levied for all taxing cities in the County
(including the City) are determined, calculated and fixed by the Assessor based upon the assessed valuation of
the property within the various taxing cities. The Assessor extends the taxes to be levied within each taxing City
upon a tax roll which contains the total amount of taxes to be so levied and collected and assigns a tax account
number to each tax lot. The tax roll is delivered to the Kitsap County Treasurer by January 15 of each year, and
an abstract of the tax roll, showing the total amount of taxes collectible in each of the taxing cities for the year, is
delivered to the Board of County Commissioners at the same time. All taxes are due and payable on the 30th of
April of each year, but if the amount due from a taxpayer exceeds thirty dollars ($30.00), one-half may be paid
then and the balance no later than October 31 of each year.
The method of giving notice of payment of taxes due, accounting for the money collected, the division of the
taxes among the various taxing cities, giving notice of delinquency, and collection procedure are all covered by
detailed statutes. The lien for ad valorem property taxes which have been levied prior to the filing of federal tax
liens is prior to such federal tax liens.
In other respects, and subject to the possible "Homestead Exemption," the lien for delinquent property taxes is
prior to all other liens or encumbrances of any kind on real or personal property subject to taxation. By law
(Chapter 6.13 RCW) the taxing unit may commence foreclosure of a tax lien on real property after three (3) years
have passed since the first delinquency. Washington State's courts have not decided whether the Homestead
Exemption may give the occupying home owner a right in the forced sale of the family residence for delinquent
general property taxes to retain the first $30,000 of proceeds of the sale. (See Algona vs. Sharp, 30 Wn. App.
837, 638 P.2d 627 (1982), holding the homestead right superior to liens for local improvement district
assessments).
AUTHORIZATION OF DEBT
The power of the City to contract debt of any kind is controlled and limited by state law. All debt must be set
forth in accordance with detailed budget procedures and paid for out of identifiable receipts and revenues. The
budget must be balanced for each fiscal year. It is unlawful for an officer or employee of the City to incur
liabilities in excess of budgetary appropriations.
GENERAL OBLIGATION INDEBTEDNESS
Under the Constitution and statutes of the State, the City may incur two types of general obligation indebtedness.
The two types are primarily differentiated by the limits on the real and personal property taxes which may be
collected for the payment thereof.
Limited tax general obligation indebtedness is payable from taxes upon all the taxable property in the City which
may be imposed by the City within the limitations prescribed by State statute without a vote of the people
3
(sometimes referred to as "non-voted debt" or "non-voted bonds" or "councilmanic bonds or notes"). The
statutory limits on the levy of such taxes are described in the section herein entitled "LiMiTS ON AMOUNT OF
GENERAL OBLIGATION INDEBTEDNESS."
Unlimited tax general obligation indebtedness is payable from taxes without limitation as to rate or amount,
imposed upon all taxable property in the City. Unlimited tax indebtedness may be incurred only after approval by
60% of the City voters at an election in which the total vote cast exceeds 40% of the votes cast at the last
preceding general election of the City or State. Such unlimited tax indebtedness is sometimes referred to as
"voted debt," "voted bonds" or "unlimited tax bonds."
Bonds issued to refund outstanding general obligation indebtedness of either type may be issued without voter
approval.
LIMITS ON AMOUNT OF GENERAL OBLIGATION INDEBTEDNESS
State statutes limit the total principal amount of all City general obligation indebtedness incurred for "general"
purposes, both limited tax and unlimited tax, to 2.5% of the actual value of taxable property within the City.
Within this 2.5% limitation, non-voted indebtedness is further limited to 1.5% of the value of such taxable
property.
The City is additionally authorized to incur general obligation indebtedness for the following "special" purposes,
with voter approval, in the total principal amount of up to the following percentages of the actual value of taxable
property within the City: water, artificial light and sewers: 2.5%; open space and park facilities: 2.5% and capital
facilities associated with economic development: 2.5%. The combination of unlimited tax and limited tax
general obligation debt for all purposes cannot exceed 7.5% of the City's assessed valuation.
The State statutory limits on City general obligation indebtedness described in this section are more restrictive
than those contained in the State Constitution. Both the Constitutional and statutory debt limits may be exceeded
if necessary to meet obligations made mandatory by State law or, if necessary, to maintain the corporate
existence of the City.
In computing total general obligation indebtedness, the following "assets" may be deducted against the principal
amount of indebtedness outstanding: (a) money and investments on deposit in general obligation bond retirement
funds: (b) taxes (both current and delinquent) levied for the payment of general obligation indebtedness; and (c)
delinquent (but not current) taxes due the general fund.
In addition to limits on the total principal amount of general obligation indebtedness described in this section, the
Constitution and statutes of the State impose other limitations on the City's levy of taxes upon real and personal
property. (See section herein entitled "TAXING POWERS AND LIMITATIONS".)
AUTHORIZATION OF SHORT-TERM DEBT
As a result of 1982 legislation, any Washington municipal corporation may borrow money and issue short-term
obligations, the proceeds of which may be used for any lawful purpose. Short-term obligations may be issued in
anticipation of the receipt of revenues, taxes, or grants or the sale of (1) general obligation bonds if the bonds
may be issued without the consent of the voters or if previously ratified by the voters; (2) revenue bonds if the
bonds have been authorized by ordinance or resolution; or (3) local improvement district bonds if the bonds have
been authorized by ordinance or resolution. These short-term obligations shall be repaid out of money derived
from the source or sources in anticipation of which they were issued or from any money legally available for this
purpose.
Additionally, the City may incur short-term indebtedness in the following ways: first, in an emergency, the
Council members may put a plan into effect and authorize indebtedness outside the current budget. All
expenditures for emergency purpose shall be paid by warrants form any available money in the fund properly
chargeable with such expenditures. If there is insufficient money on hand in the fund, the warrants become
registered interest-bearing warrants. In adopting the budget for any fiscal year, the Council members shall
appropriate funds to retire any outstanding registered warrants issued since the adoption of the last preceding
budget. Second, the City may, without a vote of the electors, purchase property on a conditional sales contract if
4
the total contract amount, together with the other non-voted general obligation indebtedness of the City, does not
exceed 3/4 of 1% of the value of taxable property in the City; any item so purchased must be budgeted for
payment in accordance with the terms of the contract.
TAXING POWERS AND LIMITATIONS
Pursuant to Chapter 84.52.043 RCW, cities may levy, without a vote of the residents residing therein, a
maximum of $3.375 per thousand for general city purposes (the "regular levy"). Cities with full-time firemen
may levy an additional $.225 per thousand to fund the city's Fireman's Pension Fund (Chapter 41.16.060 RCW),
thus creating a maximum annual levy rate of $3.60 per thousand. The City is levying $3.325291 per $1,000 of
taxable assessed valuation for its regular levy in 20001.
According to RCW 27.12.390, any city or town annexed to a rural library district, island library district, or inter-
county rural library district, such as the City, shall be entitled to levy up to $3.60 per thousand dollars of assessed
valuation less any regular levy made by such library district in the incorporated area, notwithstanding any other
provision of law.
A city's regular property taxes are subject to the provisions of a state statute limiting the growth of annual
property taxes (RCW 84.55.010). The limitation, which was amended by the Property Tax Act (enacted as Senate
Bill 5835 by the Washington Legislature in 1997 and adopted and ratified at the November 1997 general
election) provides that the regular property taxes payable in the following year shall not exceed the amount of the
single highest regular levy amount lawfully levied by the municipal entity in the three immediately preceding
calendar years multiplied by a limit factor, plus an additional amount due to the incremental assessed valuation
increase in. the municipal entity caused by new construction and property improvements. The limit factor is
defined in the Property Tax Act as (i) the lesser of 106% or 100% plus inflation, or (ii) any amount up to 106% if
approved by a majority plus one vote of the governing body of the municipality upon a finding of substantial
need. The regular property taxes levied by a city may be increased above the limit factor upon the affirmative
vote of a majority of the voters residing in the municipal entity at an election held for such purposes (RCW
84.55.050).
INITIATIVE AND REFERENDUM
Under the State Constitution, the voters of the State have the ability to initiate legislation and modify existing
legislation through the powers of initiative and referendum, respectively. The initiative power in Washington
may not be used to amend the State Constitution. Initiatives and referenda are submitted to the voters upon
receipt of a petition signed by at least 8% (initiative) and 4% (referenda) of the number of voters registered and
voting for the office of Governor at the preceding regular gubernatorial election. Any law approved in this
manner by a majority of the voters may not be amended or repealed by the Legislature within a period of two
years following enactment, except by a vote of two-thirds of all the members elected to each house of the
Legislature. After two years, the law is subject to amendment or repeal by the Legislature in the same manner as
other laws.
Initiative 695
Washington State Initiative Measure No. 695 ("I-695"), requiring voter approval for any increase in taxes,
impact fees, permit fees, or any governmental "monetary charge," was approved by voters on November 2, 1999.
Many aspects of 1-695 were challenged in court. On October 26, 2000, the Washington Supreme Court declared
1-695 unconstitutional in its entirety.
Initiative 722
On November 7, 2000, the State's voters approved Initiative No. 722 ("I-722"). 1-722 provides that any "tax"
increase adopted by the State or any local government from July 2, 1999 (the date on which 1-695 first qualified
for the ballot) through December 31, 1999 (the last day before the effective date of 1-695) is null and void and
must be refunded to the taxpayers. "Tax" is defined in 1-722 to include, but is not limited to, water, sewer and
utility charges, sales and use taxes, property taxes, business and occupation taxes, impact, license and permit
5
fees, and any monetary charge by government. 1-722 purports to exempt persons from paying the portion of
property taxes attributable to any increase in value of property (other than for new construction or manufacture)
over its 1999 valuation level, plus the lesser of two percent per year or the annual inflation rate (whichever is
less). The measure also reduces the limit on the total dollar amount of regular property taxes that may be levied
annually by a taxing district, without a vote of its electors, from 106% to 102% of the highest levy in the three
previous years. Further, it eliminates a statutory provision that allowed taxing districts to forego non-voted tax
increases in any year, yet when levying taxes in future years to calculate the allowable tax level on a base that
included the years in which no tax increase was actually imposed.
The City implemented several tax and fee increases during the period between July 2 and December 31, 1999
~,1.~,,1~ ~1,.. ....... +~ +1~ ...........F .... 1~ ........ -1 ^,*. +1.. ..... 1~-~ .......
........... s ...... s ......... s ........... ., ..... ~ ........ s ......... v .....All of these tax and fee increases were
reauthorized by the City Council in December of 2000, prior to the effective date of Initiative 722.
Several Washington municipalities, taxpayers and social service providers have recently filed lawsuits
challenging various aspects of 1-722, including its overall constitutionality, whether a refund of a "tax" that was
properly imposed constitutes an unconstitutional gift of public funds and whether a refund unlawfully affects
certain municipalities' ability to comply with their contractual obligations. The City is unable to predict the
outcome of these lawsuits.
Future Initiative Legislation
Other tax and fee initiative measures may be filed, but it cannot bc predicted whether any such initiatives might
gain sufficient signatures to qualify for submission to the Legislature and/or the voters, or, if submitted,
ultimately be approved.
AUDITING OF CITY FINANCES
The State Auditor is required to examine the affairs of cities at least once every two years. The examination must
include, among other things, the financial condition and resources of the City, whether the laws and constitution
of the State are being complied with, and the methods and accuracy of the accounts and reports of the City.
Reports of the Auditor's examinations are required to be filed in the office of the State Auditor and in the
auditing department of the City.
AUTHORIZED INVESTMENTS
Chapter 39.59 RCW limits the investment of public funds to the following authorized investments: bonds of the
State and any local government in the State, which bonds are rated at the time of investment in one of the three
highest credit ratings by a nationally recognized rating agency; general obligation bonds of other states and
subdivisions thereof so long as those bonds are rated in one of the three highest categories; registered warrants of
a local government within the same county as the entity making the investment; and any investment authorized
by law for the treasurer of the State or any local government exclusive of certificates of deposit of banks or bank
branches not located in the State. Under chapter 43.84 RCW, the State Treasurer may invest in non-negotiable
certificates of deposit in designated qualified public depositories; in obligations of the U.S. government, its
agencies and wholly owned corporations; in bankers' acceptances; in commercial paper; in repurchase
agreements; in the obligations of the federal home loan bank, federal national mortgage association and other
government corporations subject to statutory provisions. Utility revenue bonds and warrants of any city and
bonds or warrants of a local improvement district are also eligible investments (RCW 35.39.030).
Any municipal corporation, including the City, may authorize the investment of funds not required for immediate
expenditure by the County Treasurer. Such funds of the City, including debt service funds, may be invested by
the County Treasurer. The County Treasurer may, upon the request of one or more units of local government
that invest their money with the County, combine those monies for the purposes of investment (RCW 36.29.022).
The office of the County Treasurer receives up to five percent of the earnings on such investments, subject to a
maximum of fifty dollars on each transaction, as its investment service fee. The County Treasurer may
6
reimburse its office for any expenses incurred in the establishment and maintenance of such a County investment
pool (RCW 36.29.024).
Local Government Investment Pool
The State Treasurer's Office administers the Washington State Local Government Investment Pool (the "LGIP"),
a $3.50 billion fund that invests money on behalf of more than 350 cities, counties and special taxing districts. In
its management of LGIP, the State Treasury adheres, at all times, to the principles appropriate for the prudent
investment of public funds. These are, in priority order, (i) the safety of principal; (ii) the assurance of sufficient
liquidity to meet cash flow demands; and (iii) to attain the highest possible yield within the constraints of the first
two goals. Historically, the LGIP has had sufficient liquidity to meet all cash flow demands.
The LGIP, authorized by chapter 43.250 RCW, is a voluntary pool that provides its participants the opportunity
to benefit from the economies of scale inherent in pooling. It is also intended to offer participants increased
safety of principal and the ability to achieve a higher investment yield than would otherwise be available to them.
The LGIP is a conservatively managed, highly liquid money market fund. The pool is restricted to investments
with maturities of one year or less, and the average investment life typically is less than 90 days. Permissible
investments include U.S. government and agency securities, bankers' acceptances, high quality commercial
paper, repurchase and reverse repurchase agreements, and certificates of deposit issued by qualified Washington
State depositories.Authorized Investments for Bond Proceeds
Authorized Investments for Bond Proceeds
In addition to the eligible investments discussed above, bond proceeds only may also be invested in mutual funds
with portfolios consisting of U.S. government and guaranteed agency securities with average maturities of less
than four years; municipal securities rated in one of the four highest categories; and money market funds
consisting of the same, so long as municipal securities held in the fund(s) are in one of the two highest rating
categories. Bond proceeds may also be invested in shares of money market funds with portfolios of securities
otherwise authorized by law for investment by local governments (RCW 39.59.030).
The City's Investments
The investments of the City, except those of the Community Development Block Grant Fund, are managed in a
pooled format. Interest earnings are distributed monthly to the individual funds based on their respective
balances at the beginning of the month. These pooled investments are classified on the balance sheet as cash and
equivalents. As required by state statue, all investments and deposits of the City's funds are obligations of the
U.S. Government, U.S. agency issues, deposits with the State Treasurer's Investment Pool, prime bankers'
acceptances, deposits with Washington State banks and savings and loan institutions or repurchase agreements
with authorized securities as collateral.
7
NET DIRECT DEBT AND ESTIMATED NET
OVERLAPPING GENERAL OBLIGATION DEBT1
(As of December 31,2000)
Direct Debt:
Voted General Obligation Bonds Outstanding ................................$ 1,005,000
Non-Voted Bonds Outstanding ....................................................... 7,435,000
The 2001 Bonds ............................................................................... 3,0100,0002, 3 [
The Notes ......................................................................................... !,250,0002
Bank Line of Credit Outstanding ..................................................... 0
Less: Debt Service Fund Balance .................................................... (324,450)
Net Direct Debt .................................................................. $ 12,365,550
Estimated Net Overlapping Debt as of November 30, 2000:
Net G.O. Debt Percent of Amount of
Outstanding Overlap Overlap
Kitsap County. ................................ $ 69,275,561 10.69% $ 7,408,648
Port of Bremerton ........................... 3,600,000 25.01 900,360
Bremerton Sch. Dist. No. 100-C ..... 23,875,000 75.34 17,986,932
Central Kitsap Sch. Dist. No. 401... 79,610,000 1.01 804,086
South Kitsap Sch. Dist. No. 402 ...... 6,969,748 0.16 [1,475
Estimated Net Overlapping Debt: ........................................... $ 27,111,501
Net Direct Plus Estimated Net Overlapping Debt: .................................... $ 39,477,051
BONDED DEBT RATIOS OF THE CITY
Assessed Valuation for Collection Year 20014 ................................................... $ 1,482,231,297
Estimated City Population (2000)5 ................................................................... 36,160
Assessed Valuation Per Capita ............................................................................... $ 40,991
Net Direct Debt to Assessed Valuatiori .................................................................... 83%
Net Direct and Estimated Overlapping Debt to Assessed Valuation ..................... 2.66%
Net Direct Debt Per Capita ..................................................................................... $ 342
Net Direct and Estimated Overlapping Debt Per Capita ........................................ $ 1,092
I Includes the Bonds. Sources: the City and Kitsap County Assessor's and Treasurer's office.
2 Preliminary, subject to change.
3 The 2001 Bonds being issued simultaneously with the Bonds will be used to design, construct and equip new clubhouse at the Gold
Mountain Golf Complex.
4 Assessed valuation for tax collection year 2001 is stated as the full assessed value of all taxable real and personal property in the City,
and is preliminary, provided by the Kitsap County Assessor's office, as of December 29, 2000.
5 Source: Washington State Office of Financial Management.
8
STATUTORY DEBT LIMIT CALCULATION'
(As of December 31,2000)
2000 Assessed Valuation for Collection Year 2001 .............................................. $ !,482,23 !,2972
I. General Purposes
a. Non-Voted Indebtedness Limit (1.5% of Assessed Valuation) ....................... $ 22,233,469
Less: Non-Voted Bonds Outstanding ......................................................... (7,435,000)
Less: The 2001 Bonds ................................................................................. (3,01_00,000)3, 4 I
Less: The Notes ........................................................................................... (1,250,000)3
Plus: Cash and Investments in Debt Service Funds .................................... 324,450
Remaining Capacity for General Purposes (Non-voted) ...................... $ 10,872,919
b. Voted Indebtedness Limit (2.5% of Assessed Valuation) ................................ $ 37,055,782
Less: Voted Bonds Outstanding .................................................................. (1,005,000)
Less: The Notes ........................................................................................... (1,250,000)3
Less: Non-Voted Bonds Outstanding (including the 2001 Bonds) ... (10,435,000)3'4
Plus: Cash and Investments in Debt Service Funds .................................... 324,450
Remaining Capacity for General Purposes (Voted) ............................. $ 24,690,232
II. Utility Purposes (2.5% of Assessed Valuation)
Limit ............................................................................................................... $ 37,055,782
Less: Bonds Outstanding ................................................................................ 0
Remaining Capacity for Utility Purposes ............................................. $ 37,055,782
III. Parks and Open Space Purposes (2.5% of Assessed Valuation)
Limit ............................................................................................................... $ 37,055,782
Less: Bonds Outstanding ................................................................................ 0
Remaining Capacity for Parks and Open Space Purposes ................... $ 37,055,782
IV. Capital Facilities for Economic Development (2.5% of Assessed Valuation)
Limit ............................................................................................................... $ 37,055,782
Less: Bonds Outstanding ................................................................................ 0
Remaining Capacity for Economic Development ................................ $ 37,055,782
AD VALOREM TAX RECORD OF THE CITY5
Collection Taxable Assessed Tax Collected Year of Levy Collected as of November 30, 2000
Includes the Bonds. Sources: the City and Kitsap County Assessor's and Treasurer's offices.
Assessed valuation for tax collection year 2001 is stated as the full assessed value of all taxable real and personal property in the City,
and is preliminary, provided by the Kitsap County Assessor's office as of December 29, 2000.
Preliminary, subject to change.
The 2001 Bonds being issued simultaneously with the Bonds will be used to design, construct and equip new clubhouse at the Gold
Mountain Golf Complex.
Source: Kitsap County Treasurer's and Assessor's offices.
9
Year Valuation Levy Amount Percent Amount Percent
2001 $ 1,482,231,297 HA4 NA3 NA4 NA4 NA4
2000 1,410,350,733 $ 5 622,110 $ 5,328,636 94.78% $ 5,346,064 95.09%
1999 1,343,271,067 5 431,058 5,150,435 94.94 5,317,099 98.01
1998 1,345,904,065 5 450,559 5,219,429 95.76 5,405,360 99.17
1997 1,299,548,001 4 953,030 4,702,202 94.94 4,944,214 99.82
1996 1,223,940,521 4 686,230 4,482,747 95.66 4,682,795 99.93
1995 1,203,299,197 4 481,718 4,251,403 94.86 4,480,418 99.97
NOTE: Taxes are due and payable on April 30, of each year. At least one half of the tax amount due must be paid on or
before April 30, or else the total amount becomes delinquent on May 1. The second half of the tax due is payable
on or before October 31, becoming delinquent November 1.
AD VALOREM PROPERTY TAX RATES IN THE CITY'
(Rates In Dollars per $1,000 of Assessed Valuation)
City School Emerg.
Collection General City State 'Kitsap Port of Dist. No. Medical Regional
Year Fund Bonds Schools County Bremerton 100C PUD Services Library Total
2000 $3.3250 $ 0.1578 $ 3.2808 $ 1.8552 $ 0.5006 $ 4.9954 $ 0.1008 $ 0.5000 $ 0.5000 $ 15.2150
1999 3.3250 0.2126 3.3178 1.8125 0.4814 5.1422 0.1017 0.5000 0.5000 15.3932
1998 3.3250 0.2218 3.5911 1.3908 0.4624 5.0292 0.1017 0.5000 0.5000 15.1220
1997 3.3469 0.2153 3.6467 1.6641 0.4338 5.1331 0.0998 0.2500 0.9781 15.7678
1996 3.3573 0.2255 3.4848 1.6347 0.4287 5.1551 0.0939 0.2500 0.4677 15.0977
MAJOR PROPERTY TAXPAYERS~
CITY OF BREMERTON
Assessed Valuation for 2001
Taxpayer Business Collection Year
Puget Sound Energy Utility $ 36,906,886
US West Communications Inc. Utility 25,397,583
Michael Connolly (Trustee for Bremer Properties) Retail/Parking 8,201,000
Bay Pointe Retirement Community Retirement/Nursing Home 7,451,057
Haselwood, Charles & Joanne Land/Automotive Retail 7,042,900
Kitsap Physicians Services Health Plans Health Care 6,834,875
Merit Company Retail 6,729,000
Erlands Associates LLC Apartments 6,688,000
Viewcrest Villages LTD Partnership Multifamily Residential 6,683,000
Complex
Fir Lane Terrace Convalescent Center Convalescent Center 6,504,000
Beta Ballard LLC Retail 6,231,000
Bremerton Cascade Association Retirement Apartments 5,775,000
Cascade Natural Gas Corporation Utility 5,660,456
HealthSouth Corporation Health Care 5,033,987
COMPARATIVE STATEMENT OF GENERAL FUND
REVENUES AND EXPENDITURES5
(Fiscal Year Ending December 31)
Assessed valuation is stated as the assessed valuation of all taxable real and personal property in the City. Figure for 200l is
preliminary as of December 29, 2000.
Includes all City levies.
Not available.
Source: Kitsap County Assessor's Office.
Source: City of Bremerton Annual Financial Reports. All years have been audited by the Washington State Auditor's Office.
10
1999 1998 1997 1996 1995
Revenues:
Taxes $ 16,942,624 $ 16,201,397 $ 15,678,923 $ 15,498,917 $14,501,567
Licenses & Permits 376,370 314,340 348,796 312,203 298,989
Intergovernmental 1,114,093 1,027,234 812,436 742,432 847,272
Charges for Services 1,870,719 1,596,652 1,762,945 1,864,848 1,783,646
Fines & Forfeits 500,039 446,715 512,828 433,775 483,964
Miscellaneous 324,931 383,402 290,343 342,700 248~743
Total Revenues $ 21,128,776 $ 19,969,740 $ 19,406,271 $19,194,875 $18,164,181
Expenditures:
GeneralGovernment $ 4,035,899 $ 4,075,157 $ 4,199,525 $ 5,313,516 $ 5,009,311
Security of Persons & Prop. 11,940,351 11,685,742 10,893,020 9,313,570 8,614,262
Physical Environment 549,929 555,693 613,338 942,764 848,346
Transportation 1,133,438 986,816 923,064 959,327 850,639
Economic Environment 826,067 862,864 507,996 276,689 454,250
Mental & Physical Health 24,632 24,632 24,632 30,818 264,239
Culture & Recreation 1,853,003 1,780,180 1,768,867 1,867,204 1,566,669
Redemption of LTGO Debt 0 4,194 2,688 0 0
Debt Service 55,989 57,478 74,055 85,540 59,860
Capital Outlay 198,269 208,697 298,438 404,888 486,005
Total Expenditures $ 20,617,577 $ 20,241,453 $ 19,305,623 $ 19,194,316 $18,153,581
Other Financing Sources (Uses)
Operating Transfers In $ 254,457 $ 251,251 $ 113,144 $ 196,725 $ 6,000
Operating Transfers Out (394,624) (397,428) (406,836) (357,180) (307,836}
General Fixed Assets Disp. 21,423 15,316 15,568 36,671 2,886
Proceeds of LTGO Debt 0 0 16,629 237,700 0
Total Other Financing Sources $ (118,744) $ (130,861) $ (261,495) $ 113,916 $ (298,950)
(Uses)
Fund Balance, January 1 $ 314,484 $ 701,726 $ 861,135 $ 709,671 $ 1,064,368
Prior Year's Corrections 0 0 0 0 0
Residual Equity Transfers 477 0 0 6,435 (65,128)
Other Equity Changes 7,557 15,332 1,438 30,554 (1,219)
Total Ending Fund Balance $ 714,973 $ 314,484 $ 701.72._~__._~6 $ ~ $ 709.671
CONTINGENCY RESERVE FUND
YEAR-END BALANCESt, 1
1999 1998 1997 1996 1995
Ending Fund Balance $ 697,517 $ 709,162 $ 706,947 $ 673,110 $ 709,040
GENERAL FUND BUDGET FOR 2000 AND 20012
(Fiscal Year Ending December 31 )
2001 2000
REVENUES
Beginning Fund Balance $ 1,500,000 $ 500,000
Taxes 17,569,000 16,929,500
Licenses and Permits 395,200 348,480
1 $650,000 is the minimum per City policy. Interest eamings on the balance is transferred to the General Fund in the following year.
2 Source: City of Bremerton.
11
Intergovernmental Revenue 902,020 1,044,609
Charges for Services 1,999,995 1,761,711
Fines and Forfeitures 763,500 536,600
Miscellaneous and Other 3,353,300 3,035,172
Total Revenue $ 26.483.015 $ 24,156,072
EXPENDITURES
General Government
City Council $ 165,856 $ 167,231
Executive 216,887 161,577
Administrative Services1 2,415,708 2,112,583
Police & Fire Pension 1,533,395 1,554,786
Parking 610,000 0
Intergovernmental Service 193,556 134,447
Misc. Non-Departmental 1,982,764 1,297,578
Legal Department 468,074 505,281
Human Resources 215,530 208,348
Community Development 609,076 712,021
City Auditor 133,623 87,709
Public Safety
Police Department 6,374,375 6,448,232
Fire Department 4,705,861 4,234,482
Public Works
General Facilities 493,442 434,979
Engineering 299,233 339,827
Equipment Services Division 1,549,058 1,200,853
Leisure Services
Administration 269,734 0
Parks & Facilities Maintenance 823,844 0
General Parks 0 1,097,874
Recreation 454,443 222,066
Senior Center 0 171,487
Pool 0 300,874
Cemetery Services 0 71,831
Athletics, Aquatics 468,556 192,006
Tax Anticipation Note Debt Service 2,500,000 2,500,000
Total Current Expenditures $ 26.483.01~5 $ 24.156.072
l City Clerk, Treasurer, Information Services, Municipal Court and Risk Management are combined under Administrative Services.
12
SCHEDULE OF GENERAL OBLIGATION BOND DEBT SERVICE FOR THE CITY'
(Years Ending December 31 )
Outstanding Non-
Voted General Voted General Total
Obligation Bonds Obligation Bonds The 2001 Bonds2 Debt
Year Principal Interest Principal Interest Principal Interest Service
2001 $ 185,000 $ 40,805 $ 350,000 $ 395,413 $ 90,000 $ $
2002 190,000 32,647 365,000 378,555 95 000
2003 205,000 23,906 380,000 360,595 100 000
2004 135,000 16,308 405,000 341,520 105 000
2005 140,000 10,085 425,000 320,860 110 000
2006 150,000 3,450 445,000 298,395 115 000
2007 0 0 465,000 274,210 120 000
2008 0 0 495,000 248,722 125 000
2009 0 0 520,000 221,168 135 000
2010 0 0 555 000 191,952 140 000
2011 0 0 590 000 160,135 145 000
2012 0 0 540 000 126,160 155 000
2013 0 0 280 000 97,505 160 000
2014 0 0 300 000 83,505 170 000
2015 0 0 300 000 68,355 180 000
2016 0 0 325 000 53,055 190 000
2017 0 0 340 000 36,318 200 000
2018 0 0 355 000 18,637 210,000
2019 0 0 0 0 220,000
2020 0 0 0 0 235,000
Total $1.005.000 $ 127.151 $7.435.000 $3.675.0613 $ 3.000.00{) $~ $ ~
CITY PROFILE
The City was incorporated in 1901 and operates as Home Rule Charter City with a Mayor Council form of
government. The Council is comprised of nine members, elected by district by the citizens of the City, each
serving a four-year term. The Council Members are part-time elected officials who exercise the legislative
powers of the City and determine matters of policy. The Mayor, a full-time elected official, is the chief executive
officer of the City. The Officers and department directors are appointed by the mayor with Council approval.
The City provides a full range of municipal services including fire and police protection, parks and recreation
facilities/activities, streets, planning, zoning and general administrative services. The City operates water, sewer
and stormwater utility systems. Currently, there are 342 full-time employees of the City.
Key Personnel
Lynn Horton, Mayor: Ms. Horton began her second tefrn as Mayor of the City in 1998. Before her election as
mayor, she served for six years on the Bremerton City Council. She is the past Chair and current Board Member
of the Kitsap Regional Planning Council, and a board member of Kitsap Transit, Kitsap County Cen-Com and
the Bremerton-Kitsap County Health Department. Ms. Horton is a graduate of the University of Washington and
has been a resident of the City since 1974.
Richard Hanna, City Treasurer: Mr. Hanna has been the Treasurer of the City of Bremerton since 1986. Before
joining the City, he was Treasurer of the City of Centralia, Washington. Mr. Hanna received his Bachelor's
Degree in Accounting from Western Washington University in 1974 and a Masters of Business Administration
Degree in Finance from University of Puget Sound in 1983. Mr. Hanna is a member of the Washington Finance
Officers Association, Washington Municipal Treasurers Association and Puget Sound Finance Officers
Association.
1 The Notes are not included in this schedule.
2 Preliminary, subject to change
13
Labor Relations
The City has entered into written agreements with each of the bargaining groups set forth below. These
agreements contain provisions on such matters as vacations, sick leave, medical and dental insurance, salaries,
worlcing conditions and grievance procedures.
Employees of the City represented by bargaining units are as follows:
Union Membership Contract Period Expiration Date
Teamsters Local 589 130 3 yr. 12/31/00*
Patrolman's Association 53 ! yr. 12/31/00'
Police Management Association 5 1 yr. 12/31/00'
International Association of Fire Fighters Local 437 44 3 yr. 12/31/01
* In process of negotiation.
In accordance with State requirements, the City conducts full negotiations with all bargaining units. The City's
management considers its relations with employees to be satisfactory.
14
GENERAL AND ECONOMIC INFORMATION
The City of Bremerton, is located on Puget Sound, approximately 15 miles west of Seattle and 35 miles north of
Tacoma. The largest city in Kitsap County (the "County"), Bremerton was incorporated in 1901 and has an
estimated 2000 population of 36,160 Kitsap County, covering 393 square miles of land, also includes the
following other incorporated areas: Bainbridge Island (2000 population 20,150), Port Orchard (2000 population
7,270) and Poulsbo (2000 population 6,500).
Military Presence
The economy of the City is closely tied to the United States Navy. In 1999, the estimated armed forces
population in Kitsap County was 10,809. The Puget Sound Naval Shipyard in Bremerton ("PSNS") is the largest
Naval shipyard on the Pacific Coast and is the only West Coast shipyard capable of working on nuclear ships.
With 7,711 civilian employees, 49 military personnel (excluding ship personnel), and approximately 12,000
military family members, the shipyard is also the only facility capable of decommissioning and recycling nuclear
submarines which are being disassembled in accordance with Strategic Arms Limitations Treaties. PSNS is the
largest naval employer, in the State. The shipyard itself encompasses 344 acres of land, 382 buildings and nine
permanent piers totaling 12,310 feet of deep water space. The economic impact of PSNS locally is
approximately $700 million per year.
The Fleet and Industrial Supply Center is another local Naval facility in the City, with 619 civilian employees
and 20 military personnel. Naval Station Bremerton employs 936 civilians and 232 military personnel.
Located a few miles north of the City of Bremerton is the Naval Submarine Base at Bangor. Bangor serves as a
home base for Trident Missile submarines, the USS Parche fast attack submarine and various support commands.
The base provides employment to 3,400 civilians, and 5,900 military personnel. Another 10,000 military family
members are connected to the base. Bangor is the only base of its kind on the Pacific Coast. Annual local
economic impact of Bangor is $230 million.
The largest subcontractor providing services to the U.S. Department of Defense in Kitsap County is Johnson
Controls World Service, with 658 employees. BAE Systems is the second largest, with 325 employees.
Another military installation located near the City is the Naval Undersea Warfare Engineering Station at
Keyport. The station tests and maintains torpedoes, provides maintenance support for fire control equipment and
mines, and provides other engineering-related services for undersea warfare. The Undersea Warfare Station
employs 1,859 civilian and 30 military personnel.
Other Major Employers
The Port of Bremerton (the "Port") operates the Bremerton National Airport and the 560-acre Olympic View
Industrial Park, both located approximately 10 miles southwest of the City. The park includes 32 firms which
employ a total of approximately 350 people. Over 500 acres of land at the industrial park are designated as a
foreign trade zone which offers duty savings to its tenants.
Bremerton National Airport is the largest airport in the County, with a 6,200-foot runway and full
instrumentation and lighting systems. The airport can handle all general aviation aircraft and most transport and
military planes. Charter passenger and air freight services are available to SeaTac Airport, the major
international airport in the Puget Sound area. The Bremerton Airport has recently undergone improvements.
Health care needs are met by several facilities in the Bremerton area including the Naval Hospital - Bremerton
with 355 civilian and 729 military personnel serving approximately 80,000 military, family members and retirees
in the area. The hospital is undergoing a $24 million expansion project, due for completion in late Spring 2001.
Harrison Hospital in Bremerton has 1,162 employees and 297 beds. A Radiation Oncology Center was recently
completed at Harrison with 14,000 square feet of space. A number of nursing homes and retirement complexes
are also located in Bremerton.
Olympic College is a two-year public community college located in Bremerton, with an enrollment of
approximately 4,310 (full-time equivalents). The college has 290 full-time permanent employees, but can
employ up to 600 employees, including part-time student workers. The college offers associate of arts degrees in
four fields, as well as adult education and non-credit courses, and began a four-year degree program (called "2-
15
Plus-2") in 1994. The 2-Plus-2 degree program is associated with the University of Washington, Tacoma branch.
A new library is being constructed at the college.
See the table on page 18 of this Official Statement for a list of employers in Kitsap County with 200 or more
employees.
In 1999, the average new home price in the City was $136,048, which is approximately 12% higher than prices in
1991. The residential subdivision, Illahee North Division 2, added 22 new single-family residential lots to the
City's total. A survey conducted in September of 2000 indicated an average rent in the City of $569 per month,
and a 6.4% vacancy rate. The downtown office vacancy rate, excluding buildings converted to office use for the
U.S. Navy, was 8.65% in 1999.
New Developments
Among the projects recently completed or proposed for development in Bremerton are the following:
· A multi-modal transportation facility is now under construction on the City's downtown waterfront. The
project includes foot ferries that serve Bremerton, the Bremerton Transportation Center, and highway
improvements to Bremerton. The cost of the publicly funded projects is estimated at $21 million. The new
Bremerton Transportation Center which is under construction will serve ferry, bus, bicycle and pedestrian
commuters and travelers on their way to Seattle and Port Orchard. Expanded ferry service with higher-speed
foot passenger ferry service between Bremerton and Seattle began service in 1998.
· Pope Resources, a timber and land management company based in Poulsbo, and its subsidiary, Olympic
Resource Management, have obtained land within the City that is planned for development as a 61-acre
business park and 209 acres for 450 new homes. The project has received permit approval from the City and
construction is under way.
· Olympic View Business Park is being developed by the Port for business and technology-oriented
businesses. It lies adjacent to a broad bandwith feber optics line and the Bremerton National Airport.
Construction of the 30-acre planned business park, began in the summer of 2000.
· Port Blakely Communities has plans to develop a mixed use project on land west of Kitsap Lake. Located
just outside of the current City limits, this area would likely be annexed to the city. The project includes
approximately 900 housing units with parking and other amenities to attract and be suitable for home-based
businesses. A business park with 2.225 million square feet is also included in the project plans. As many as
9,000 jobs could be associated with the project, which is currently in the planning stage.
· The Bremerton Gateway Project is a $40 million multi-year traffic modiciation under construction for the
City's main entry corridor. Included in the project are beautification, traffic improvement, street widening
and related projects designed to improve the first impression upon entering the City.
· The Northwest Corporate Campus is a business park and residential community planned for development on
244 privately owned acres near the City, that are zoned for industrial and residential use. The project plans
include a building for light industrial use on 188 acres as well as approximately 200 middle-income
residential units on 56 acres.
Following are economic indicators of the City and the County.
16
KITSAP COUNTY POPULATION!
City of Other Kitsap County Kitsap County
Year Bremerton Incorporated Unincorporated Total
2000 36 160 33,920 160 120 230,200
1999 36 888 33,540 159.890 229,700
1998 37 260 32,615 159. 125 229,000
1997 38 600 32,060 158.740 229,400
1996 38 496 31,210 155 120 224,700
1995 39 610 29,915 151.075 220,600
1994 35 920 28,625 148.655 213,200
1993 36,380 28,160 145,460 210,000
1992 38,990 27,405 139,205 205,600
1991 37,040 26,639 132,821 196,500
1990 38,142 12,913 138,676 189,731
TAXABLE RETAIL SALES2
City of
Year Kitsap County Bremerton
20003 $ 1,137,049,303 $ 281,554,539
1999 2,309,819, 810 562,364,764
1998 2,064,021,512 506,875,439
1997 1,958,346,681 498,779,418
1996 1,836,198,934 477,467,218
1995 1,768,304,057 451,277,414
SEATTLE-BREMERTON FERRY TRAFFIC STATISTICS4
Number of Number of
Year Vehicles Passengers
1999 731,969 2,488,466
1998 714,903 2,211,641
1997 756,796 2,047,014
1996 731,926 1,863,596
1995 751,266 1,820,433
KITSAP COUNTY AND WASHINGTON STATE
LABOR FORCE AND AVERAGE ANNUAL UNEMPLOYMENT5
Resident Civilian Average Annual Total
Year Labor Force Unemployment Employment Kitsap County (%) Washington (%)
1999 93,300 4,700 88,600 5.0 4.7
1998 91,300 4,800 86,500 5.3 4.8
1997 93,000 5,1 O0 87,900 5.5 4.8
1996 93,500 6,300 87,200 6.7 6.5
1995 89,600 6,000 83,600 6.7 6.4
KITSAP COUNTY MEDIAN HOUSEHOLD INCOME ESTIMATES6
Year
2000 $ 45,401
1999 44,036
1998 42,484
1997 41,524
1996 39,808
Source: Washington State Office of Financial Management and U.S. Census.
Source: Washington State Department of Revenue.
2000 figures are for first two quarters only.
Source: Washington State Department of Transportation, Marine Division.
Source: Washington State Employment Security.
Source: Washington State Office of Financial Management; figures for 2000 are forecast. All fugures are presented in current
dollars.
17
MAJOR EMPLOYERS IN KITSAP COUNTY1
(As of October 2000)
No. of
Major Government Employers (Civilian/Military) Employees
Pugest Sound Naval Shipyard (7,711/49) 7,760
Naval Submarine Base Bangor (3,400/5,900) 9,300
Naval Undersea Warfare Center (1,859/30) 1,889
Naval Station Bremerton (936/232) 1,168
Naval Hospital Bremerton (355/729) 1,084
Fleet Industrial Supply Center (619/20) 639
Major Defense Contractors
Johnson Controls World Services (estimate) 658
BAE Systems 325
Lockheed Martin 262
Raytheon Systems 200
American Systems Engineering Corporation 219
Major Local & State Public Agency Employers
Central Kitsap School District 1,400
South Kitsap School District 1,100
Kitsap County 1,050
Bremerton School District 752
North Kitsap School District 713
Washington State Ferries2 350
City of Bremerton 327
United State Postal Service 291
Olympic College 290
Retsil Veterans Home2 280
Kitsap Transit 277
Bainbridge Island School District 220
Educational Service District #114 200
Major Private Sector Employers
Harrison Hospital l, 162
Town & County Markets 350
Belmont Terrace/Ridgemont Terrace 340
WalMart (2 locations) 332
Albertsons (5 locations) 313
Laurier Enterprises (McDonald's) 295
Martha & Mary Nursing Home & Child Ctr 276
Port Madison Enterprises (Suquamish Tribe) 261
Safeway 260
COSTCO Wholesale 240
The Doctors Clinic 230
Kitsap Mental Health 225
The Bon Marche 204
Group Health Cooperative 200
Courtesy Chevrolet/Ford/Mitsubishi 200
Source: Kitsap County Economic Development Council as of October 2000.
Source: Washington State Employment Security, LMEA.
18
PRESERVATION OF TAX EXEMPTION
The City has covenanted, in the Ordinance, to take all actions necessary to prevent interest on the Notes from
being included in gross income for federal income tax purpose, and it will neither take any action nor make or
permit any use of proceeds of the Notes or other funds of the City at any time during the term of the Notes which
will cause interest on the Notes to be included in gross income for federal income tax purposes. The City certifies
that it has not been notified of any listing or proposed listing by the Internal Revenue Service to the effect that it
is a bond issuer whose arbitrage certifications may not be relied upon.
CONFLICTS OF INTEREST
Some or all of the fees of the Underwriter and Bond Counsel are contingent upon the issuance and sale of the
Notes. Furthermore, Bond Counsel from time to time serves as counsel to the Underwriter with respect to issuers
other than the City and transactions other than the issuance of the Notes. None of the council members or other
officers of the City has interests in the issuance of the Notes that are prohibited by applicable law.
TAX EXEMPTION
In the opinion of Gottlieb, Fisher & Andrews, PLLC, Bond Counsel, as of the date of issue of the Notes (the
"Date of Issue"), and provided the City complies with applicable requirements of the Code which must be
satisfied subsequent to the issuance thereof, interest on the Notes is excluded from gross income for federal
income tax purposes under existing federal law; and such interest is not an item of tax preference for purposes of
determining the alternative minimum tax on individuals and corporations under existing federal law. However,
under existing federal laws, interest on the Notes received by certain corporations is to be taken into account in
the computation of adjusted current earnings for purposes of calculating the alternative minimum tax applicable
to such corporations; such interest received by certain S corporations may be subject to tax; and such interest
received by foreign corporations with United States branches may be subject to a foreign branch profits tax.
Bond Counsel expresses no opinion regarding any other federal tax consequences of receipt of interest on the
Notes. Potential purchasers of the Notes should consult with their tax advisors as to all possible tax
consequences of ownership of the Notes. See also, "OTHER TAX CONSEOUENCES," herein.
The Code contains certain requirements which must be satisfied subsequent to the issuance of the Notes in order
to maintain the tax treatment described above, including requirements relating to the application of the proceeds
of the Notes, use of facilities which are financed with such proceeds, limitations on income derived from the
investment of gross proceeds of the Notes (as defined in Section 148 of the Code), and rebate to the United States
Treasury of certain of such investment income on such gross proceeds. The City has covenanted to comply with
these requirements; and the opinion expressed by Bond Counsel and described in the preceding paragraph
assumes such compliance. However, Bond Counsel has not undertaken and does not undertake to monitor
compliance by the City with such requirements and if the City should fail to comply with such requirements
interest on the Notes could become includable in gross income for federal income tax purposes, in each case,
retroactive to the Date of Issue.
OTHER TAX CONSEQUENCES
Under current federal law:
1. Corporate Alternative Minimum Tax. The interest on tax-exempt obligations received by a corporation is
taken into account in the computation of the alternative minimum tax applicable to corporations (as defined
for federal income tax purposes). Under current federal law, the alternative minimum taxable income of
such a corporation (other than an S corporation, a regulated investment company, a real estate investment
trust or a REMIC) is increased by 75% of the amount by which the "adjusted current earnings" of the
corporation exceeds the corporation's alternative minimum taxable income determined without regard to
such increase and any alternative tax net operating loss deduction. Interest on tax-exempt obligations,
19
whenever issued or acquired, including interest on the Notes, is included in the computation of "adjusted net
book income" and "adjusted current earnings."
For taxable years beginning after December 31, 1997, the corporate alternative minimum tax is repealed
forsmall business corporations that had average gross receipts of less than $5 million for the 3-year period
beginning after December 31, 1994, and such small business corporations will continue to be exempt from
the corporate alternative minimum tax so long as their average gross receipts do not exceed $7.5 million
2. Tax on Excess Passive Investment Income of S Corporations. Certain excess net passive investment
income, including interest on the Notes, received by an S corporation (a corporation treated as a partnership
for most federal tax purposes) that has "subchapter C earnings and profits" at the close of its taxable year
may be subject to federal income tax at the highest rate applicable to corporations if more than 25% of the
gross receipts of such S corporation for such taxable year is passive investment income.
3. Foreign Corporation Branch Profits Tax. Interest on the Notes received by certain foreign corporations
doing business in the United States may be subject to a branch profits tax applicable to such corporations that
is based on their Untied States source earnings and profits, including tax-exempt interest on obligations such
as the Notes.
4. Reduction of Loss Deduction for Property and Casualty Insurance Companies. Interest on tax-exempt
obligations, including the Notes, received by property and casualty insurance companies, will reduce tax
deductions for loss reserves otherwise available to such companies by an amount equal to 15 percent of such
tax-exempt interest received during the taxable year.
5. Social Security and Tier 1 Railroad Retirement Benefits Subject to Tax. Interest received or accrued
during the year from tax-exempt obligations, such as the Notes, is included in the calculation of "modified
adjusted gross income" of recipients of the social security or tier 1 railroad retirement benefits. If the sum of
the "modified adjusted gross income" for the taxable year plus one-half of the social security or tier 1
railroad retirement benefits received during the taxable year exceeds a base amount provided by the Code
(the "excess amount"), then the lesser of (i) one-half of the social security or tier 1 railroad retirement
benefits received during the taxable year or (ii) one-half of the "excess amount", is included in the gross
income of the social security or tier 1 railroad retirement benefit recipient.
ABSENCE OF MATERIAL LITIGATION
There is no litigation of any kind now pending or, to the knowledge of the City, threatened to restrain or enjoin
the issuance or delivery of the Notes or in any manner questioning the proceedings and authority under which the
Notes are issued or affecting the ability of the City to pay the principal of or the interest on the Notes.
APPROVAL OF BOND COUNSEL
Legal matters incident to the authorization, issuance and sale of Notes by the City are subject to the approving
legal opinion of Gottlieb, Fisher & Andrews, PLLC, Bond Counsel. A copy of the opinion of Bond Counsel will
be delivered with the Notes.
CONTINUING DISCLOSURE
The City has undertaken, for the benefit of the Owners and Beneficial Owners of the Notes required by
subsection (b)(5)(i) of the Rule 15c2-12 (the "Rule") of the United States Securities and Exchange Commission
(the "SEC"), to provide or cause to be provided to each then existing nationally recognized municipal securities
information repository designated by the SEC ("NRMSIR") and to the State Information Depository ("SID"), if
one is created, the following annual financial information and operating data (collectively, the "Annual Financial
Information") for each prior fiscal year, commencing with the fiscal year ending December 31, 2000, on or
before the last day of the ninth month following the end of such prior fiscal year:
(a) annual financial statements prepared in accordance with the generally accepted accounting principles
applicable to governmental units, as such principles may be changed from time to time and as permitted by
20
State law; which statements will not be audited, except that if and when audited financial statements are
otherwise prepared and available to the City, they will be provided (the "Annual Financial Statements");
(b) authorized, issued and outstanding balance of general obligation bonds;
(c) assessed valuation for the fiscal year;
(d) regular property tax levy rate and regular property tax levy rate limit for the fiscal year; and
(e) narrative explanation for the reasons for any amendments to the undertaking made during the previous
fiscal year and the impact of such amendments on the Annual Financial Information being provided.
In its provision of such financial information and operating data, the City may cross-reference to any "final
official statement" (as defined in the Rule) available from the Municipal Securities Rulemaking Board (the
"MSRB") or any other documents theretofore provided to each then existing NRMSIR or the SID, if one is
created.
The City further agrees to provide or cause to be provided, in a timely manner, to the SID, if one is created, and
to either the MSRB or each then existing NRMSIR, notice of any of the following events with respect to the
Notes, if material:
1. Principal and interest payment delinquencies;
2. Non-payment related defaults;
3. Unscheduled draws on debt service reserves reflecting financial difficulties;
4. Unscheduled draws on credit enhancements reflecting financial difficulties;
5. Substitution of credit or liquidity providers, or their failure to perform;
6. Adverse tax opinions or ex?ents affecting the tax-exempt status of the Notes;
7. Modifications to rights of the Owners of the Notes;
8. Optional redemptions of the Notes;
9. Defeasances of the Notes;
10. Release, substitution or sale of property securing repayment of the Notes; and
11. Rating changes.
The City also agrees to provide or cause to be provided, in a timely manner, to the SID, if one is created, and to
either the MSRB or each then existing NRMSIR, notice of its failure to provide the Annual Financial Information
for the prior fiscal year on or before the last day of the seventh month following the end of such prior fiscal year.
After the issuance of the Notes, so long as the interests of the Owners or Beneficial Owners of the Notes will not
be materially impaired thereby, as determined by a party unaffiliated with the City (including, without limitation,
a trustee for the Owners, nationally recognized bond counsel or other counsel familiar with the federal securities
law), or pursuant to a favorable "no-action letter" issued by the SEC, this continuing disclosure undertaking may
only be amended in connection with any change in legal requirements, change in law, or change in the identity,
nature or status of the obligated person, or type of business conducted, and only in such a manner that the
continuing disclosure undertaking of the City, as so amended, would have complied with the requirements of the
Rule at the time of the primary offering, after taking into account any amendments or interpretations of the Rule,
as well as any change in circumstances.
The City's obligations to provide Annual Financial Information and notices of certain events shall terminate
without amendment upon the defeasance, prior redemption or payment in full of all of the then outstanding
Notes. This continuing disclosure undertaking or any provision hereof, shall be null and void if the City (i)
obtains an opinion of nationally recognized bond counsel or other counsel familiar with the federal securities
laws to the effect that those portions of the Rule which require this continuing disclosure undertaking or any
such provision are invalid, have been repealed retroactively or otherwise do not apply to the Notes; and (ii)
notifies and provides the SID, if any, and either the MSRB or each then existing NRMSIR with copies of such
opinion.
The right of each Owner or Beneficial Owner of Notes to enforce the provisions of this continuing disclosure
undertaking shall be limited to the right to obtain specific enforcement of the City's obligations in this continuing
disclosure undertaking and any failure by the City to comply with the provisions of this continuing disclosure
undertaking shall not be a default with respect to the Notes under the Ordinance.
21
UNDERWRITING
The Underwriter has agreed, subject to certain conditions, to purchase all of the Notes, if any are purchased, at a
price of % of the par value of the Notes from the dated date to the settlement date. The Notes will be
reoffered at an average price of % of the par value of the Notes, resulting in a underwriting spread of $
per $1,000 of principal. After the initial public offering, the public offering prices may be varied from time to
time.
CONCLUDING STATEMENT
All estimates, assumptions, statistical information and other statements contained herein, while taken from
sources considered reliable, are not guaranteed by the City or the Underwriter. So far as any statement herein
includes matters of opinion, or estimates of future expenses and income, whether or not expressly so stated, they
are intended merely as such and not as representations of fact.
The information contained herein should not be construed as representing all conditions affecting the City or the
Notes. Additional information may be obtained directly from the City or the Underwriter.
The foregoing statements relating to the Ordinance and other documents are in all respects subject to and
qualified in their entirety by provisions of such documents.
This Official Statement, starting with the cover page and all subsequent pages, including the appendices,
comprise the entire Official Statement, which has been approved by the City. The City has represented to the
Underwriter that the portions of this Official Statement directly pertaining to the City neither contain any
misrepresentation of material fact nor omit any material fact necessary to understand the financial, economic or
legal nature of the City or any information presented herein.
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APPENDIX A
FORM OF LEGAL OPINION
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APPENDIX B
DTC AND BOOK-ENTRY SYSTEM
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DTC AND BOOK ENTRY SYSTEM
Portions of the information relating to the Book Entry System under this heading have been furnished by DTC, but have
not been independently verified by the Underwriter or the City. Neither the Underwriter nor the City makes any
representation whatsoever as to the accuracy, adequacy or completeness of such information.
DTC is a limited-purpose trust company organized under the New York Banking Law, a "banking organization" within
the meaning of the New York. Banking Law, a member of the Federal Reserve System, a "clearing corporation" within
the meaning of the New York Uniform Commercial Code, and a "clearing agency" registered pursuant to the provisions
of Section 17A of the Securities Exchange Act of 1934, as amended. DTC holds securities that its participants
("Participants") deposit with DTC. DTC also facilitates the settlement among Participants of securities transactions, such
as transfers and pledges, in deposited securities through electronic computerized book-entry changes in Participants'
accounts, thereby eliminating the need for physical movement of securities certificates. Direct Participants include
securities brokers and dealers, banks, trust companies, clearing corporations, and certain other organizations. Access to
the DTC system is also available to others such as securities brokers and dealers, banks, and trust companies that clear
through or maintain a custodial relationship with a Direct Participant, either directly or indirectly ("Indirect
Participants"). The Rules applicable to DTC and its Participants are on file with the Securities and Exchange
Commission.
In September 1999, the Securities and Exchange Commission approved the integration of DTC and National Securities
Clearing Corporation as separate subsidiaries of the Depository Trust and Clearing Corporation ("DTCC"). Through the
integration, former owners of DTC (consisting of a number of its Direct Participants, the New York Stock Exchange,
Inc., the American Stock Exchange LLC, and the National Association of Securities Dealers, Inc.) became part owners of
DTCC.
Purchases of Notes under the DTC system must be made by or through Direct Participants, which will receive a credit for
the Notes on DTC's records. The ownership interest of each actual purchaser of each Note ("beneficial owner") is in turn
to be recorded on the Direct and Indirect Participants' records. Beneficial owners will not receive written confirmation
from DTC of their purchase, but beneficial owners are expected to receive written confirmations providing details of the
transaction, as well as periodic statements of their holdings, from the Direct or Indirect Participants through which the
beneficial owners entered into the transaction. Transfers of ownership interests in the Notes are to be accomplished by
entries made on the books of Participants acting on behalf of beneficial owners. Beneficial owners will not receive
certificates representing their ownership interests in Notes, except in the event that use of the book-entry system for the
Bonds is discontinued.
To facilitate subsequent transfers, all Notes deposited by Participants with DTC are registered in the name of DTC's
partnership nominee, Cede & Co. The deposit of Notes with DTC and their registration in the name of Cede & Co. effect
no change in beneficial ownership. DTC has no knowledge of the actual beneficial owners of the Notes; DTC's records
reflect only the identity of the Direct Participants to whose accounts such Notes are credited, which may or may not be
the beneficial owners. The Participants will remain responsible for keeping account of their holdings on behalf of their
customers.
SO LONG AS CEDE& CO. IS THE REGISTERED OWNER OF THE NOTES, AS NOMINEE OF DTC,
REFERENCES HEREIN TO THE NOTEOWNERS OR REGISTERED OWNERS OF THE NOTES SHALL MEAN
CEDE & CO. AND SHALL NOT MEAN THE BENEFICIAL OWNERS OF THE NOTES.
Conveyance of notices and other communications by DTC to Direct Participants, by Direct Participants to Indirect
Participants, and by Direct Participants and Indirect Participants to Beneficial Owners will be governed by arrangements
among them, subject to any statutory or regulatory requirements as may be in effect from time to time.
Redemption notices shall be sent to Cede & Co. If less than all of the Notes within a maturity are being redeemed,
DTC's practice is to determine by lot the amount of the interest of each Direct Participant in such maturity to be
redeemed.
Neither DTC nor Cede & Co. will consent or vote with respect to Notes. Under its usual procedures, DTC mails an
Omnibus Proxy to the City as soon as possible after the record date. The Omnibus Proxy assigns Cede & Co.'s
consenting or voting rights to those Direct Participants to whose accounts the Bonds are credited on the record date
(identified in a listing attached to the Omnibus Proxy).
Principal and interest payments on the Notes will be made to DTC. DTC's practice is to credit Direct Participants'
accounts on the payment date in accordance with their respective holdings shown on DTC's records unless DTC has
reason to believe that it will not receive payment on the payment date. Payments by Participants to beneficial owners
will be governed by standing instructions and customary practices, as is the case with securities held for the accounts of
customers in bearer form or registered in "street name," and will be the responsibility of such Participant and not of DTC,
the Note Registrar, or the City, subject to any statutory or regulatory requirements as may be in effect from time to time.
Payment of principal and interest to DTC is the responsibility of the City or the Note Registrar. Disbursement of such
payments to Direct Participants shall be the responsibility of DTC, and disbursement of such payments to the beneficial
owners shall be the responsibility of Direct and Indirect Participants.
DTC may discontinue providing its service as securities depository with respect to the Notes at any time by giving
reasonable notice to City or the Note Registrar. Under such circumstances, in the event that a successor securities
depository is not obtained, Note certificates are required to be printed and delivered. The beneficial owner of each Note,
upon registration of certificates held in the beneficial owner's name, will become the Registered Owner of that Note.
The City may decide to discontinue use of the system of book-entry transfers through DTC (or a successor securities
depository). In that event, Note certificates will be printed and delivered.
The City and the Note Registrar will recognize DTC or its nominee as the Bondowner for all purposes, including notices
and voting. Conveyance of notices and other communications by DTC to Direct Participants, by Direct Participants to
Indirect Participants, and by Direct Participants and Indirect Participants to beneficial owners will be governed by
arrangements among them, subject to any statutory or regulatory requirements that may be in effect from time to time.
NEITHER THE CITY NOR THE NOTE REGISTRAR WILL HAVE ANY RESPONSIBILITY OR OBLIGATION TO
DTC PARTICIPANTS, OR THE PERSONS FOR WHOM THEY ACT AS NOMINEES, WITH RESPECT TO THE
PAYMENTS TO OR THE PROVIDING OF NOTICE TO THE DIRECT PARTICIPANTS, THE INDIRECT
PARTICIPANTS OR THE BENEFICIAL OWNERS OF THE NOTES. THE CITY CANNOT AND DOES NOT GIVE
ANY ASSURANCES THAT DTC, DIRECT PARTICIPANTS OR OTHERS WILL DISTRIBUTE PAYMENTS OF
PRINCIPAL OF OR INTEREST ON THE NOTES PAID TO DTC OR ITS NOMINEE, AS THE REGISTERED
OWNER, OR ANY NOTICES TO THE BENEFICIAL OWNERS OR THAT THEY WILL DO SO ON A TIMELY
BASIS, NOR THAT DTC WILL ACT IN A MANNER DESCRIBED IN THIS OFFICIAL STATEMENT.
Each beneficial owner, acting through DTC, will have all the rights and privileges of the ownership of its Note or Notes
and will not be required to act in concert with other beneficial owners of the Notes held by DTC. DTC will forward to
the beneficial owners any notices received in respect of their Notes and will act in accordance with their instructions with
respect thereto.
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CITY OF BREMERTON
2001 CASH FLOW PROJECTION
3,000,000
2,500,000
2,000,O00
1,500,000
1,000,000
500,000 --
(500,000) .......
DEC JAN FEB MAR APR MAY JUN JUL AUG SEP OCT NOV DEC
---e-- ENDING CASH