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HomeMy WebLinkAbout01/24/01 AGENDA CITY COUNCIL MEETING AGENDA JANUARY 24, 2001 1. PRE-COUNCIL STUDY SESSION: 5:00 - 5:30 P.M. A. General Council Business 2. CALL TO ORDER: 5:30 P.M. A. Pledge of Allegiance B. Invocation 3. CONSENT AGENDA ,~ //~ ../ '-/~. Min~~tlr, g Jan'..'ar-~17,2001 (#A~ 4. CLAIMS/CHECK REGISTERS 5. COUNCIL MEMBER REPORTS 6. MAYOR'S REPORT 7. INFORMATION ITEM - "Purchase & Sale Agreement of Navy Property" with Richard Hayes, Executive Director of Kitsap Transit 8. PUBLIC RECOGNITION - (Comments limited to 3-minutes) 9. NEW BUSINESS A. Bid Award for High Rate Clarification System Procurement (#AB01-021) 10. PUBLIC HEARINGS - ORDINANCES A. Ordinance No. 4751 (Second Reading) Authorizing the Issue of a $1,250,000 Tax Anticipation Note and Accepting the Purchase Offer of Bank of America (#AB01-019) B. Ordinance (First Reading) Vacating the North 35 Feet of the Alley North of 11th Street Place, between Pleasant Avenue and Highland Avenue (#AB01-022) C. Ordinance (First Reading) Vacating a Portion of 15th Street, located West of Warren Avenue and East of Broadway Avenue (#AB01-023) D. Ordinance (First Reading) Vacating a Portion of Chester Avenue North 13 024) 11. PUBLIC HEARINGS - RESOLUTIONS A. Resolution No. 2796, Setting a Hearing Date of February 21, 2001, for Vacating the Alley located between Naval and Roosevelt Avenues, and between 6 025) 12. PUBLIC HEARINGS A.Appeal of Determination of Non-Significance, Nance Weslon Place Plan Amendment (Quasi Judicial Hearing) (#AB01-026) 13. ADJOURNMENT OF MEETING AGENDA BILL BREMERTON CITY COUNCIL 1. SUBJECT: Bid Award for High Rate FOR AGENDA OF: January 24, 2001 Clarification System Procurement ORIGINATING DEPT: PW & Utilities ORIGINATOR: John Poppe DATE SUBMITTED: January 24, 2001 Director PW&U -~ ~..br~///~/_ t../ · Summary of Bids City Attorney ~.~( ~v~/_ _~ _ City Treasurer ......... ~ · Purchasing Manager ~-t~2~' ~ · Operations Committee ~.~. ~ Fiscal & Budget Comm. ,~,?~_~.</.o,-4 ( a,C~v~! XX ./"7 MAYOR ~ ~' ~ COUNCILPRESIDENTd/g~:~/¥~'~~~ 4. SUMMARY STATEMENT AND REQUIREMENT FOR COUNCIL ACTION: A High Rate Clarification System is required for the East Bremerton CSO Treatment Plant. On January 4, 2001 the City published a" Notice Inviting Bids" for a "High Rate Clarification System Supplier Procurement". Bid opening wasrlanuary 18, 2001 by the City's Purchasing Agent. ~ bids were received with DS ¢5~_-ff:~.[ ~lEO 6,-Cr'~ submitting the low bid in the amount of $ 9,96 ~$qo..00__ . Recommended Council actibn is for the approval to purchase items specified in the bid proposal'by L}._~laTtc-T~'ft,/~xl(~.---~--~ in the amount of $ 996,~840.00 ' including tax. 8. RECOMMENDATION: The City Council approve the bid award for the High Rate Clarification System to O.~ F,t--qC--~/~/'LOC--e~ in the amount of $__996:¥0.__0_0_.... including tax and authorize the Mayor to execute a procttrementt-- contract in accordance with City 136ticies and Procedures. 9. RESPONSIBLE OFFICIAL: ENFORCEMENT OFFICIAL: EXPIRATION DATE: REVIEW DATE: 10. NOTICE OF ACTION PULLED TABLED APPROVED DISAPPROVED AMENDED COUNCIL DIRECTIVE: DATE: ll. AGENDABILLNO: C~(/- ~1 ''~ I~ -7 2. CLEARANCE COMMENTS: 5. IMPACT ON NON-PASSAGE: This equipment is required for a project included in the City's Comprehensive CSO Reduction Plan. Without the project, the City will be in noncompliance with the PSA consem decree. 6. IMPACT ON STAFFING, BUDGETS~ FACILITIES, EQUIPMENT OR OTHER RESOURCES: This equipment is included in the CSO Treatment Facility which is included in the 2001 Budget and Capital Facilities Plan. 7. RESEARCH SOURCES: 1999 and 2000 Pilot Testing at the Bremerton wastewater facility. {\970122_1 .ab} CITY OF BREMERTON BID TABULATION ~D ~DDE~ ~D ~ECO ITEM 1 ITEM 2 ITEM 3 ITEM 4 ITEM 5 NET BID TAX TOTAL w~SS~ AGENDA BILL BREMERTON CITY COUNCIL January 17, 2001 ,. ~,~C,: ,o. 475.'1. FOR AGENDA OF: January 24, 2001 ORIGINATING DEPT: Treasu rer.~/ AUTHORIZING THE ISSUE OF A $1,250,000 TAX ORIGINATOR: Rich H,~ff~a ANTICIPATION NOTE AND ACCEPTING THE DATE SUBMITTED: January.dS', 2001 PURCHASE OFFER OF BANK OF AMERICA 2. CLEARANCE_S: ~omment of back if necessary) 3. EXHIBITS: Dir. Admin. Services ,~~ ~ Proposed Ordinance ~ 7 ~ I Fiscal and Budget Comm. ,_~~,~/f~ ~ .,/.~-.~ -/..~,., Preliminary Official Statement Operations Cash Flow Projection i Note Purchase Offer (at second reading) ENDORSEMENTS INFORMATION ~ APPROVED BY COUNCIL PRESIDENT FOR SUBMITTAL: 4. SUMMARY STATEMENT AND REQUIREMENT FOR COUNCIL ACT, I~N: As indicated in the attached documents, the City's General Fund will operate in a deficit cash position at certain times during 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: Move to pass on second reading Ordinance No. Jtauthorizing 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: January 31, 2002 REVIEW DATE: N/A 10. NOTICE OF ACTION PULLED~ TABLED~ APPROVED~ DISAPPROVED AMENDEEi'-0 A 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. BankofAmerica Banc of America Securities LLC Jane Towery Vice President NW Public Finance Honorable Mayor and City Council January 24, 2001 City of Bremerton 239 4th Street Bremerton, Washington 98337 RE: City of Bremerton, Washington $1,250,000 Tax Anticipation Notes, 2001 Honorable Mayor and City Council: Banc of America Securities LLC (the "Underwriter") offers to purchase from the City of Bremerton (the "Issuer") all of the above-described notes (the "Notes"), on the terms and based upon the covenants, representations and warranties set forth below and in Appendix A, which is incorporated into this agreement (the "Purchase Agreement") by reference. Appendix A contains a brief description of the Notes, including principal amount, maturity, interest rate, purchase price, and the proposed date and place of delivery and payment (the "Closing"). Other provisions of this Purchase Agreement are as follows: 1. Prior to the Closing, Issuer will approve a Preliminary Official Statement (hereinafter defined) and will pass an ordinance authorizing the issuance and sale of the Notes (the "Note Ordinance") with such changes as are requested by the Issuer and its counsel. The Underwriter is authorized by Issuer to use these documents and the information contained in them in connection with the public offering of the Notes and the Final Official Statement (hereinafter defined) in connection with the sale and delivery of the Notes. 2. Issuer, to the best of its knowledge, represents and covenants to the Underwriter that: (A) It has, and will have at the Closing, the power and authority to enter into and perform this Purchase Agreement, to pass the Note Ordinance and to deliver and sell the Notes to the Underwriter; (B) This Purchase Agreement and the Notes do not and will not conflict with, or constitute or create a breach or default under, any existing law, regulation, order or agreement to which Issuer is subject; (C) Other than the Note Ordinance, no governmental approval or authorization is required in connection with the sale of the Notes to the Underwriter; (D) The Preliminary Official Statement with corrections, if any, noted by the Issuer and its counsel, which is "deemed final" as of its date and (except as to matters corrected or added in the Final Official Statement including offering prices, interest rates, selling compensation, delivery dates, and other information dependent on such matters) as of this date, is accurate and complete in all material respects as of its date to the knowledge and belief of the officers and employees of the Issuer responsible for its review, after due review; (E) The Issuer hereby ratifies, approves and confirms the distribution of the Preliminary Official Statement with respect to the Notes, dated January 16, 2001 (together with the Bane of America Securities LLC member NYSE/NASD/SIPC, is a subsidiary of Bank of America Corporation 800 Fifth Avenue, Floor 34, Post Office Box 34662, Seattle, Washington 98124 Telephone (206) 358-8991, Telefax (206) 358-8818, jane.d.towery@bankofamerica.com The City of Bremerton January 24, 2001 Page 2 Appendices thereto, any documents incorporated therein by reference, and any supplements or amendment thereto, the "Preliminary Official Statement"), in connection with the public offering and sale of the Notes by the Underwriter prior to the availability of the Final Official Statement and deems such Preliminary Official Statement final as of its date for purposes of paragraph (b)(1) of the United States Securities and Exchange Commission Rule 15c2-12 (the "Rule"), except for the omission of such information as may be permitted by the Rule; (F) The Issuer agrees to cooperate with the Underwriter to permit the Underwriter to deliver or cause to be delivered, within seven business days after this Purchase Agreement and in sufficient time to accompany any confirmation that requests payment from any customer of the Underwriter, copies of a Final Official Statement (the "Final Official Statement") in sufficient quantity to comply with paragraph (b)(4) of the Rule and the rules of the Municipal Securities Rulemaking Board ("MSRB"); (G) The Issuer will have made an undertaking to provide continuing disclosure to meet the conditions of paragraph (d)(2) of the Rule as required under paragraph (b)(5) of the Rule as provided in the Note Ordinance. 3. The Underwriter agrees to deliver three copies of the Final Official Statement to each of the nationally recognized municipal securities information repositories on the business day on which the Final Official Statement is available, and in any event no later than seven business days after the date thereof. 4. The Underwriter shall have the right to cancel this Purchase Agreement by notifying the Issuer of its election to do so if, after the execution of this Purchase Agreement and prior to the Closing: (A) A decision by a court of the United States or the United States Tax Court shall be rendered, or a ruling or a regulation (final, temporary, or proposed) by or on behalf of the Treasury Department of the United States, the Internal Revenue Service or other governmental agency shall be issued and in the case of any such regulation, published in the Federal Register, or legislation shall have been introduced in, enacted by or favorably reported to either the House of Representatives or the Senate of the United States with respect to federal taxation upon interest received on bonds of the type and character of any of the Notes which, in the reasonable judgment of the Underwriter, materially adversely affects the marketability of the Notes or their sale by the Underwriter, at the contemplated public offering prices; or (B) The United States shall have become engaged in hostilities which have resulted in declaration of war or national emergency, or other national or international calamity or other event shall have occurred or accelerated to such an extent as, in the reasonable opinion of the Underwriter, to have a materially adverse affect on the marketability of the Notes; or (C) There shall have occurred a general suspension of trading on the New York Stock Exchange; or The City of Bremerton January 24, 2001 Page 3 (D) A general banking moratorium shall have been declared by United States, New York State or Washington State authorities; or legislation shall hereafter be enacted, or actively considered for enactment, with an effective date prior to the date of the delivery of the Notes, or a decision by a court of the United States shall hereafter be rendered, or a ruling or regulation by the Securities and Exchange Commission or other govemmental agency having jurisdiction on the subject matter shall hereafter be made, the effect of which is that: (i) The Notes are not exempt from the registration, qualification or other requirements of the Securities Act of 1933, as amended and as then in effect, or the Securities Exchange Act of 1934, as amended and then in effect, or (ii) The Note Ordinance is not exempt from the registration, qualification or other requirements of the Trust Indenture Act of 1939, as amended and as then in effect, or (E) A stop order, ruling or regulation by the Securities and Exchange Commission shall hereafter be issued or made, the effect of which is that the issuance, offering or sale of the Notes, as contemplated herein or in the Final Official Statement, is in violation of any provision of the Securities Act of 1933, as amended and as then in effect, and which, in its reasonable judgment, adversely affects the marketability of the Notes or the market price thereof. 5. The Underwriter's obligations hereunder are also subject to the following conditions: (A) At or prior to the Closing, Issuer will deliver, make available to the Underwriter, or have adopted: (i) The Notes, fully registered in book-entry form only in the name of Cede & Co., as bond owner and nominee for The Depository Trust Company; (ii) A certificate from an authorized officer of Issuer, in form and substance acceptable to the Issuer and the Underwriter, stating that execution of the Certificate shall constitute execution of the Final Official Statement by the Issuer, that the Final Official Statement, to the knowledge and belief of such officer, after due review, as of its date, did not and as of the date of Closing, does not contain any untrue statement of a material fact or omit any statement or information which is necessary to make the statements therein, in the light of the circumstances under which made, not misleading, and that the representations of the Issuer contained in this Purchase Agreement were true and correct when made and are true and correct as of the Closing; and 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, to the general economy of the City since the date of the Preliminary Official Statement, except as disclosed in the Official Statement or any supplement thereto; (iii) The approving opinion of Bond Counsel dated the day of Closing in the form attached to the Official Statement; The City of Bremerton January 24, 2001 Page 4 (iv) The following documents executed by authorized officers of the Issuer: (a) A certificate, dated the day of the Closing to the effect that no litigation or other proceedings are pending or threatened in any way affecting the issuance, sale or delivery of, or security for, any of the Notes or the collection or application of the taxes to be used for the payment of principal and interest on the Notes. (b) A certificate setting forth the facts, estimates and circumstances in existence on the date of Closing which establish that it is not expected that the proceeds of the Notes will be used in a manner that could cause the Notes to be "arbitrage bonds" within the meaning of Section 148 of the Intemal Revenue Code and any applicable regulations thereunder. (c) Such additional certificates, instruments or opinions or other evidence as the Underwriter may deem reasonably necessary or desirable to evidence the due authorization, execution, authentication and delivery of the Notes, the truth and accuracy as of the time of the Closing of the Issuer's representations and warranties, and the conformity of the Notes and Note Ordinance with the terms thereof as summarized in the Official Statement, and to cover such other matters as it reasonably requests. (d) A certified copy of the Note Ordinance. 6. Issuer will pay the cost of preparing, printing and executing the Notes if any, the fees and disbursements of Bond Counsel, its financial advisors, bond registration, travel and lodging expenses of Issuer's employees, and other expenses of Issuer. The Underwriter will pay fees and disbursements of Underwfiter's travel expenses, and other expenses of the Underwriter. As a convenience to Issuer, the Underwriter may from time to time make arrangements for certain items for which Issuer is responsible hereunder, such as printing of the Preliminary and Final Official Statements. The Underwriter also may advance for Issuer's account when approved or authorized by the Underwriter the cost of the items for which Issuer is responsible by making payments to third-party vendors. In such cases, Issuer shall pay such costs or expenses directly, upon submission of appropriate invoices by Underwriter, or promptly reimburse the Underwriter in the event the Underwriter has advanced such costs or expenses for Issuer's account. It is understood that Issuer shall be primarily responsible for payment of all such items and that the Underwriter may agree to advance the cost of such items from time to time solely as an accommodation to Issuer and on the condition that it shall be reimbursed in full by Issuer. 7. This Purchase Agreement is intended to benefit only the parties hereto, and Issuer's representations and warranties shall survive any investigation made by or for the Underwriter, delivery and payment for the Notes, and the termination of this Purchase Agreement. Should the Issuer fail to satisfy any of the foregoing conditions or covenants, or if the Underwriter's obligations are terminated for any reasons permitted under this Purchase Agreement, then The City of Bremerton January 24, 2001 Page 5 neither the Underwriter nor the Issuer shall have any further obligations under this Purchase Agreement, except that any expenses incurred shall be borne in accordance with Section 6. 8. This offer expires on the date, and at the time, set forth on Appendix A. Respectfully submitted, Banc of America Securities LLC By: Shandra Tietze Assistant Vice President Accepted January 24, 2001 City of Bremerton By: It s: APPENDIX A DESCRIPTION OF NOTES (a) Purchase Price: $1,245,625 ($99.65 per $100), plus accrued interest from the dated date to the date of Closing (b) Dated Date: February 1, 2001 (c) Par: $1,250,000 (d) Denominations: $50,000 or integral multiples thereof (e) Form: Book-entry only Interest Payment Date: On January 31, 2002 (maturity) (g) Maturity Schedule: Notes shall mature and bear interest as follows: Due January 31 Amount Rate Yield or Price 2002 $1,250,000 3.50 % 100 (h) Optional Redsmption: The Notes will not be subject to redemption prior to maturity (i) Closing Date: February 9, 2001 (j) Offer Expires: 11:59 p.m. January 24, 2001 (k) Bond Counsel: Gottlieb Fisher & Andrews PLLC For Information Purposes Only: Gross Interest Cost $ 43,750.00 Plus: Underwriter's Discount 4,375.00 Net Interest Cost $ 48,125.00 Net Interest Cost (%) 3.85% OFFICIAL STATEMENT DA TED JANUARY 25, 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 "qualified tax-exempt obligations" for purposes of the partial interest expense deduction available under Section 265 of the Code. However, interest on the Notes is included in the computation of other taxes, including without limitation the alternative minimum tax on corporations and may be subject to other collateral tax consequences. See "TAX EXEMPTION" and "OTHER TAX CONSEQUENCES" herein. CITY OF BREMERTON, WASHINGTON $1,250,000 TAX ANTICIPATION NOTES, 200'1 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 (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 3.50% 100 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 include in its budgets and 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 1986, 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 9, 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 Representations The Under~vriter has provided the follo~ving sentence for inclusion in this Official Statement. The Under~vriter has reviewed the information in this Official Statement in accordance with, and as part of, its responsibilities to investors under the federal securities laxvs 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 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. 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. CITY OF BREMERTON Kitsap County, Washington 239 Fourth Street Bremerton, Washington 98337' (360) 478-5290 MAYOR Term Expires December 31 Lynn Horton 2001 CITY COUNCIL John Law Chairperson 2001 Wayne Olsen Member 2001 Caro! Mends 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 TABLE OF CONTENTS Page In~oduction ................................................................................................................................................................ 1 Description of the Notes ............................................................................................................................................ 1 Debt Payment Record ................................................................................................................................................ 2 Future Financing ........................................................................................................................................................ 2 Assessed Valuation Dete..rmination ............................................................................................................................ 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 ........................................................................................................................ 10 Ad Valorem Property Tax Rates in the City ........................................................................................... 10 Major Property Taxpayers ....................................................................................................................................... l0 Comparative Statement of General Fund Revenues and Expenditures .................................................................. 11 Contingency Reserve Fund Year-End Balances ...................................................................................................... 11 General Fund Budget for 2000 and 2001 ................................................................................................................. 12 Schedule of General Obligation Bond Debt Service for the City ............................................................................ 13 City Profile .......................................................................................................................... 13 General and Economic Information ......................................................................................................................... 15 Preservation of Tax Exemption ............................................................................................................................... ! 9 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 OFFICIAL STATEMENT CITY OF BREMERTON, WASHINGTON $1,25o,ooo 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 (the "State"), 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 3.50% 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" hereto. 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. 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 O~vners 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 24, 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 include in its budget and 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 due. The City has irrevocably pledged its full faith, credit and resources to the annual levy and collection of such taxes and for the prompt payment of such principal and interest. The 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 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 each such annual tax levy to be 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 the 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 expects to issue approximately $3.1 million of bonds for the purpose of designing, constructing and equipping a new clubhouse at the City's Gold Mountain Cell Course sometime in the first half of 2001. ASSESSED VALUATION DETERMINATION In the State, the County Assessor (the "Assessor") determines the value of all real and personal property throughout the County (including the City) which is subject to ad valorem taxation. The Assessor's duties and methods of determining value are prescribed and controlled by statute and by detailed regulations promulgated by the 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 taxion .... is ~-'m~d- in the~c~ur .......... 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 $40,000 of proceeds of the sale. (See Algona vs. Sharp, 30 Wn. App. 837, 638 P.2d 627 (1982), holding the homestead right superior to liens for local improvement district assessments). AUTHORIZATION OF DEBT The power of the City to contract debt of any kind is controlled and limited by state law. All debt must be set forth in accordance with detailed budget procedures and paid for out of identifiable receipts and revenues. The budget must be balanced for each fiscal year. It is unlawful for an officer or employee of the City to incur liabilities in excess of budgetary appropriations. GENERAL OBLIGATION INDEBTEDNESS Under the Constitution and statutes of 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 (sometirnes referred to as "non-voted debt" or "non-voted bonds" or "councilmanic bonds or notes"). The 3 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, for both limited tax and unlimited tax, to 2.5% of the actual value of taxable property within the City. Within this 2.5% limitation, non-voted indebtedness is further limited to 1.5% of the value of such taxable property. The City is additionally authorized to incur general obligation indebtedness for the following "special" purposes, with voter approval, in the total principal amount of up to the following percentages of the actual value of taxable property within the City: water, artificial light and sewers: 2.5%; open space and park facilities: 2.5% and capital facilities associated with economic development: 2.5%. The combination of unlimited tax and limited tax general obligation debt for all purposes cannot exceed 7.5% of the City's assessed valuation. The State statutory limits on City general obligation indebtedness described in this section are more restrictive than those contained in the State Constitution. Both the Constitutional and statutory debt limits may be exceeded if necessary to meet obligations made mandatory by State law or, if necessary, to maintain the corporate existence of the City. In computing total general obligation indebtedness, the following "assets" may be deducted against the principal amount of indebtedness outstanding: (a) money and investments on deposit in general obligation bond retirement funds: (b) taxes (both current and delinquent) levied for the payment of general obligation indebtedness; and (c) delinquent (but not current) taxes due the general fund. In addition to limits on the total principal amount of general obligation indebtedness described in this section, the Constitution and statutes of the State impose other limitations on the City's levy of taxes upon real and personal property. (See section herein entitled "TAXING POWERS AND LIMITATIONS".) AUTHORIZATION OF SHORT-TERM DEBT As a result of 1982 legislation, any Washington municipal corporation may borrow money and issue short-term obligations, the proceeds of 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 from any available money in the fund properly chargeable with such expenditures. If there is insufficient money on hand in the fund, the warrants become registered interest-bearing warrants. In adopting the budget for any fiscal year, the Council members shall appropriate funds to retire any outstanding registered warrants issued since the adoption of the last preceding budget. Second, the City may, without a vote of the electors, purchase property on a conditional sales contract if the total contract amount, together ~vith 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 $3.291 per $1,000 of taxable assessed valuation for its regular levy in 2001. 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 by voters 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 affim~ative 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, penmt 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 tbr 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 lees, and any monetary charge by government. 1-722 purports to exempt persons from paying the portion of property 5 taxes attributable to any increase in value of property (other than fbr new construction or manufacture) over its 1999 valuation level, plus the lesser of txvo percent per year or the annual inflation rate (whichever is less). The measure also reduces the lirnit 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 lee increases during the period between July 2 and December 31, 1999, including its property taxes for collection year 2001. 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 be 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 ihe 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 Ibr 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 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. ~ne 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. 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 Notes ........................................................................................ 1,250,000 Less: Debt Service Fund Balance .................................................... (324,450) Net Direct Debt .................................................................. $ 9,365,550 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 11,475 Estimated Net Overlapping Debt: ........................................... $ 27,111,501 Net Direct Plus Estimated Net Overlapping Debt: ..................................... $ 36,477,051 BONDED DEBT RATIOS OF THE CITY Assessed Valuation for Collection Year 20012 ................................................... $ 1,482,231,297 Estimated City Population (2000)3 .................................................................... 36,160 Assessed Valuation Per Capita ............................................................................... $ 40,991 Net Direct Debt to Assessed Valuation. .................................................................... 63% Net Direct and Estimated Overlapping Debt to Assessed Valuation ...................... 2.46% Net Direct Debt Per Capita ..................................................................................... $ 259 Net Direct and Estimated Overlapping Debt Per Capita ......................................... $ 1,009 t Includes the Bonds. Sources: the City and Kitsap County Assessor's and Treasurer's office. 2 Assessed valuation for tax collection year 2001 is stated as the full assessed value of all taxable real and personal property in the City. 3 Source: Washington State Office of Financial Management. 8 STATUTORY DEBT LIMIT CALCULATION1 (As of December 31, 2000) 2000 Assessed Valuation for Collection Year 2001 .............................................. $ !,482,23 t ,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 Notes ........................................................................................... (!,250,000) Plus: Cash and Investments in Debt Service Funds .................................... 324,450 Remaining Capacity for General Purposes (Non-voted) ...................... $ 13,872,919 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) Less: Non-Voted Bonds Outstanding .......................................................... (7,435,000) Plus: Cash and Investments in Debt Service Funds .................................... 324,450 Remaining Capacity for General Purposes (Voted) ............................. $ 27,690,232 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) Lirnit ............................................................................................................... $ 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 1 Includes the Bonds. Sources: the City and Kitsap County Assessor's and Treasurer's offices. 2 Assessed valuation for tax collection year 2001 is stated as the Full assessed value of all taxable real and personal property in the City. 9 AD VALOREM TAX RECORD OF THE CITY~ Collection Taxable Assessed Tax Collected Year of Levy Collected as of November 30, 2000 Year Valuation2 Levy3 Amount Percent Amount Percent 2001 $ 1,482,231,297 NA4 NA4 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 2001 $ 3.2908 $ 0.1552 $ 3.0951 $ 1.5181 $ 0.4865 $ 4.8083 $ 0.0975 $ 0.4949 $ 0.5000 $ 14.4464 2000 3.3250 0.1578 3.2808 1.8552 0.5006 4.9954 0.1008 0.5000 0.5000 15.2150 1999 3.3250 0.2126 3.3178 1.8125 0.4814 5.1422 0.1017 0.5000 0.5000 15.3932 1998 3.3250 0.2218 3.5911 1.3908 0.4624 5.0292 0.1017 0.5000 0.5000 15.1220 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 TAXPAYERSs CITY OF BREMERTON Assessed Valuation for Taxpayer Business 2001 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 Complex 6,683,000 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 I Source: Kitsap County Treasurer's and Assessor's offices. 2 Assessed valuation is stated as the assessed valuation of all taxable real and personal property in the City. 3 Includes all City levies. 4 Not available. 5 Source: Kitsap County Assessor's Office. 10 COMPARATIVE STATEMENT OF GENERAL FUND REVENUES AND EXPENDITURES~ (Fiscal Year Ending December 31) 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,i 14,093 i,027,234 8i2,436 742,432 847,272 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: General Government $ 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) lotal Ending Fund Balance $ 714,973 $ 314,484 $ 701,726 $ 861,135 $ 709,671 CONTINGENCY RESERVE FUND YEAR-END BALANCESi, 2 1999 1998 1997 1996 1995 Ending Fund Balance $ 697,517 $ 709,162 $ 706,947 $ 673,110 $ 709,040 I Source: City of Bremerton Annual Financial Reports. All years have been audited by the Washington State Auditor's Office. 2 $650,000 is the minimum per City policy. Interest earnings on the balance is transferred to the General Fund in the following year. 11 GENERAL FUND BUDGET FOR 2000 AND 2001I (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 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 Services2 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 $ 26,483,015 $ 24,156,072 I Source: City of Bremerton. 2 City Clerk, Treasurer, Information Services, Municipal Court and Risk Management are combined under Administrative Services. 12 OF GENERAL OBLIGATION BOND DEBT SERVICE FOR THE CITY~ (Years Ending December 31) Outstanding Non- Voted General Voted General Total Obligation Bonds Obligation Bonds Debt Year Principal Interest Principal Interest Service 2001 $ 185,000 $ 40,805 $ 350,000 $ 395,413 $ 971,218 2002 190,000 32,647 365,000 378,555 966,202 2003 205,000 23,906 380,000 360,595 969,50i 2004 135,000 16,308 405,000 341,520 897,828 2005 140,000 10,085 425,000 320,860 895,945 2006 150,000 3,450 445,000 298,395 896,845 2007 0 0 465,000 274,210 739,210 2008 0 0 495,000 248,722 743,722 2009 0 0 520,000 2~1,168 741,168 2010 0 0 555,000 191,952 746,952 2011 0 0 590,000 160,135 750,135 2012 0 0 540,000 126,160 666,160 2013 0 0 280,000 97,505 377,505 2014 0 0 300,000 83,505 383,505 2015 0 0 300,000 68,355 368,355 2016 0 0 325,000 53,055 378,055 2017 0 0 340,000 36,318 376,318 2018 0 0 355,000 18,637 373,637 Total $ 1,005,000 $ 127,181 $ 7,435,000 $ 3,675,060 $ 12,242,261 CITY PROFILE incorporated in 1901 and operates as Home Rule Charter City with a Mayor Council form of Council is comprised of nine members, elected by district by the citizens of the City, each term. The Council Members are part-time elected officials who exercise the legislative powers determine matters of policy. The Mayor, a full-time elected official, is the chief executive officer Officers and department directors are appointed by the Mayor with Council approval. full range of municipal services including fire and police protection, parks and recreation streets, planning, zoning and general administrative services. The City operates water, sewer systems. Currently, there are 342 full-time employees of the City. Ms. Horton began her second term as Mayor of the City in 1998. Before her election as six years on the Bremerton City Council. She is the past Chair and current Board Member Planning Council, and a board member of Kitsap Transit, Kitsap County Cen-Com and the County Health Department. Ms. Horton is a graduate of the University of Washington and has City since 1974. Treasurer: Mr. Hanna has been the Treasurer of the City of Bremerton since 1986. Before was Treasurer of the City of Centralia, Washington. Mr. Hanna received his Bachelor's from Western Washington University in 1974 and a Masters of Business Administration from University of Puget Sound in 1983. Mr. Hanna is a member of the Washington Finance Washington Municipal Treasurers Association and Puget Sound Finance Officers included in this schedule. 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, working conditions and grievance procedures. EmPloyees of the City represented by bargaining units are as follo~vs: Union Membership Contract Period Expiration Date Teamsters Local 589 130 3 yr. 12/31/00' Patrolman's Association 53 1 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 xvest 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 rnajor 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 - Brernerton 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 tbur fields, as well as adult education and non-credit courses, and began a four-year degree program (called "2-Plus- 15 2") in 1994. The 2-Phm-2 degree pro,m-am is associated xvith the l;niversity of YVashington, 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 t~er month, and a 6.4% vacancy rate. The downto~vn 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 modification under construction for the City's main entry corridor. Included in the project are beautification, traffic improvement, street widening and related projects designed to improve the first impression upon entering the City. · The Northwest Corporate Campus is a business park and residential community planned for development on 244 privately owned acres near the City, that are zoned for industrial and residential use. The project plans include a building for light industrial use on 188 acres as well as approximately 200 middle-income residential units on 56 acres. 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 230200 1999 36,888 33,540 159 890 229700 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 29,9i5 151 075 ~v""" 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 UNEMPLOYMENTS 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 5,100 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. 2 Source: Washington State Department of'Revenue. 3 2000 figures are for first two quarters only. 4 Source: Washington State Department of Transportation, Marine Division. 5 Source: Washington State Employment Security. 6 Source: Washington State Office of Financial Management; figures for 2000 are t'orecast. All figures are presented in current dollars. 17 MAJOR EMPLOYERS IN KITSAP COUNTY~ ~./~ ~1 '*~J~l.U~t::~l ~-UU~.,/] No. of Major Government Employers (Civilian/Military) Employees Puget Sound Naval Shipyard (7,711/49)2 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)2 1,168 Naval Hospital Bremerton (355/729)2 i,084 Fleet Industrial Supply Center (619/20)2 639 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 District2 1,400 South Kitsap School District2 1,100 Kitsap County2 1,050 Bremerton School District2 752 North Kitsap School District 713 Washington State Ferries2, 3 350 City of Bremerton2 327 United State Postal Service2 291 Olympic College2 290 Retsil Veterans Home3 280 Kitsap Transit2 277 Bainbridge Island School District 220 Educational Service District #1142 200 Major Private Sector Employers Harrison Hospital2 1,162 Town & County Markets2 350 Belmont Terrace/Ridgemont Terrace 340 WalMart (2 locations)2 332 Albertsons (5 locations)2 313 Laurier Enterprises (McDonald's)2 295 Martha & Mary Nursing Home & Child Ctr. 276 Port Madison Enterprises (Suquamish Tribe) 261 Safeway2 260 COSTCO Wholesale 240 The Doctors Clinic2 230 Kitsap Mental Health 225 The Ben Marche 204 Group Health Cooperative 200 Courtesy Chevrolet/Ford/Mitsubishi 200 1 Source: Kitsap County Economic Development Council as of October 2000. 2 Located partially or totally ~vithin the City of' Bremerton. 3 Source: Washington State Employment Security, LMEA. 18 PRESERVATION OF TAX EXEMPTION The City has covenanted, in the Ordinance, it ~vill 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 penmtted by Washington law and as may from time to time be required under applicable la~v to continue the exclusion of the interest on the Notes from gross income for purposes of federal income taxation. 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, the Notes are not "private activity bonds" as defined by the Code; the Notes have been designated by the City as "qualified tax-exempt obligations" for purposes of the partial interest expense deduction under Section 265 of the Code; interest on the 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 ~vith 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 CONSEQUENCES," 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 xvith 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, and could be treated as an item of tax preference for purposes of the alternative minimum tax on individuals and corporations, and could result in a loss of the partial interest expense deduction available for qualified tax-exempt obligations, in each case, retroactive to the Date of Issue. OTHER TAX CONSEQUENCES Under current federal law: 1. Corporate Alternative Minimum Tax. The interest on tax-exempt obligations received by a corporation is taken into account in the computation of the alternative minimuln tax applicable to corporations (as defined for federal income tax purposes). Under current federal law, the alternative minimum taxable income of such t9 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, ~vhenever 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 lbr 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 Inforn~ation Depository ("SID"), if one is created, the following annual financial information and operating data (collectively, the "Annual Financial 2O 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; ~vhich 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 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 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 xvith copies of such opinion. 21 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. UNDERWRITING The Underwriter has agreed, subject to certain conditions, to purchase all of the Notes, if any are purchased, at a price of 99.65% 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 100.00% of the par value of the Notes, resulting in a underwriting spread of $3.50 per $1,000 of principal. After the initial public offering, the public offering prices may be varied from time to tirne. 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 infon~aation 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. 22 APPENDIX A FORM OF LEGAL OPINION This page has been left blank intentionally. APPENDIX B DTC AND BOOK-ENTRY SYSTEM This page has been left blank intentionally. DTC AND BOOK ENTRY SYSTEM Portions of the intbrmation 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 La,v, 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 8,: 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. CITY OF BREMERTON, WASHINGTON ORDINANCE NO. AN ORDINANCE of the City of Bremerton Washington relating to the incurrence of indebtedness; providing for the sale and issuance of $1,250,000 principal amount tax anticipation notes, 2001, to pay City expenses pending the 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 lifrdtations 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, 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 39.4.6.070) 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 3.5 % 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, b6th principal and interest, is paid in full. -- The Notes shall be negotiable instruments to the extent provided by RCW 62A.8o102 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 2 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 (i) 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 eTectronic 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. 3 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 hereofi 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 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 Note'~are paid from 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 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 C. ity by such persons as at the actual date of execution of such Note shall be 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. 7 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-ttays 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 8 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 thei~ 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 bearing such interest to be earned thereon (without any reinvestment thereof) as will provide a series of payments which shall be 9 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 10 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 Note~ 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 11 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 r6quire 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 12 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 witl~i copies of a preliminary official statement dated January 16, 2001-(the "Preliminary Official Statement"), prepared in connectiofl 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, 13 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 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, 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 "Annu~ Financial Statements"); (b) Authorized, issued and outstanding balance of general obligations bonds; (c) The assessed valuation for the fiscal year 14 (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; 15 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 1'1. Rating changes. The City also agrees to provide or cause to be provided, in a timely manner, to the SD, 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 16 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 securities 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 fight 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 reqtrirements 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 will 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 17 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 Bremerton, 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 ~ews~,, B~ PUBLISHED: EFFECTIVE DATE: ORDINANCE NO. 18 AGENDA BILL BREMERTON CITY COUNCIL 1. SUBJECT: ORDINANCE # , FOR AGENDA OF: January 24, 2001 VACATING THE NORTH 35 FEET OF THE ORIGINATING DEPT: PW&U Engineering Div. ALLEY NORTH OF 11 TH STREET PLACE ORIGINATOR: Jennifer Strehler, City Engineer BETWEEN PLEASANT AVENUE AND DATE SUB1VJ~TED.,y',, __January 10, 2001 HIGHLAND AVENUE. ¢~ 2. CLEARANCES: (comment on bac -- 3. EXHIBITS Director, Public Works/Utilities ~"'3 ~ A. Ordinance # \~'~ City Attorney ~-~¥~ 5 ~ B. Site Map. Director, Community Development /'~L, {X,(~ 0 C. Staff Report. Council Budget & Finance Committe~t Operations Committee ~ ENDORSEMENT X INFORMATION COUNCIL PRESIDENT % MAYOR ~--75~7- ~ Z_ APPROVED BY COUNCIL ~ENT FOR SUBMITTAL: 4. SUMMARY STATEMENT AND REQUIREMENT FOR COUNCIL ACTION: The City has received a petition from Louis A. Cobb to vacate the north 35 feet of the alley north of 11th Street Place between Pleasant Avenue and Highland Avenue. A hearing date of January 24, 2001 was set by City Council on December 27, 2000. This fight-of-way consists of a portion of undeveloped fight-of-way that is not needed for public use. The vacation is being requested by the abutting property owner to improve the property. Posting of the hearing notices and mailings to the adjacent property owners have been completed in accordance with State law and Bremerton Municipal Code. Specific items for City Council consideration are outlined in the Staff Report. The request before the City Council is to approve, disapprove, or modify this vacation of the north 35 feet of the alley north of 11t~ Street Place between Pleasant Avenue and Highland Avenue. 8. RECOMMENDATION: A. Motion to approve the attached Ordinance, vacating the north 35 feet of the alley north of 11th Street Place between Pleasant Avenue and Highland Avenue, on first reading. B. Motion to pass Ordinance # ., vacating the north 35 feet of the alley north of 11th Street Place between Pleasant Avenue and Highland Avenue, on second reading. 9. RESPONSIBLE OFFICIAL: City Engineer ENFORCEMENT OFFICIAL: N/A EXPIRATION DATE: REVIEW DATE: 10. NOTICE OF ACTION PULLEDcouNCiL DIRECTwETABLED APPROVED DISAPPROVED D EA~2¢I~ AO A L,,SO: 0{-- 2. CLEARANCE COMMENTS: 5. IMPACT ON NON-PASSAGE: The area will remain right-of-way, which may restrict improvements of the area. 6. IMPACT ON STAFFING, BUDGETS, FACILITIES, EQUIPMENT OR OTHER RESOURCES: Staffing: No impact. Budget: No impact Facilities/Equipment: No impact 7. RESEARCH SOURCES BMC 11.20 Vacation of Public Rights-of- Way RCW 35. 79 Streets ab, Agenda Bills 2001, Cobb, Pleasant & Highland Filed for Record at Request of: When Recorded Return to: Name: Bremerton City Clerk Address: 239 Fourth Street Bremerton, WA 98337 Document Title: Ordinance No. Reference Number of Document Assigned or Released: Not Applicable Grantor's Name: City of Bremerton Grantee's Name: Not Applicable Tax Parcel #: Not Applicable. Abbreviated Legal Description: THAT PORTION OF THE SW QTR OF THE NW QTR SEC 13, T 24 N, R I E, W.M. KITSAP CO. WA. ORDINANCE # AN ORDINANCE Vacating the north 35 feet of the alley north of 11th Street Place between Pleasant Avenue and Highland Avenue. WHEREAS, Mr. Louis A, Cobb has petitioned to vacate this undeveloped right- of-way; and WHEREAS, notice has been posted and published according to law; and WHEREAS, the City Council finds that the portion of the right-of-way set forth herein is not needed for present or future use and should be vacated to allow the abutting property owners to maintain the parcel, now therefore, THE CITY OF BREMERTON DOES HEREBY ORDAIN: Section 1. Vacation. The following rights-of-way are hereby vacated to the adjoining property owners. THAT PORTION OF THE ALLEY ABUTTING LOT 2 IN THE PLAT OF BERGLAND'S FIRST ADDITION TO THE CITY OF BREMERTON, ACCORDING TO THE PLAT Ordinance Vacating Portions of Cottman Avenue and Perry Street Page 1 RECORDED IN VOLUME 3 OF PLATS PAGE 74, IN KITSAP COUNTY, WASHINGTON. Section 2. Reservation of Easements. This vacation shall have no affect on public utility easements or private easements which have been established within the rights-of-way subject to this vacation ordinance. Section 3. Effective date. This vacation shall become effective ten (10) days from passage and publication. APPROVED by the City Council of the City of Bremerton this day of ,2001. PASSED by the City Council of the City of Bremerton this day of ,2001. JOHN E. LAW, Council President APPROVED this day of ,2001. LYNN HORTON, Mayor ATTEST: KATHLEEN McCLUSKEY, City Clerk Ordinance Vacating Portions of Cottman Avenue and Perry Street Page 2 STREET VACATION REQUEST ALLEY BETWEEN PLEASANT AVENUE AND HIGHLAND AVENUE, NORTH OF 11TM PLACE ENGINEERING STAFF REPORT CITY COUNCIL HEARING DATE: January 24, 2001 PREPARED BY: Gunnar Fridriksson SUMMARY A. Applicants: Louis A. Cobb 1110 Pleasant Avenue Bremerton, Wa 98310 Location: The north 35 feet of the alley north of 11th Place between Pleasant Avenue and Highland Avenue B. Attachment: Vicinity Map and Vacation Map BACKGROUND The applicant has petitioned the City of Bremerton to vacate the northerly 35 feet of the alley that abuts their property (approximately 420 square feet). The existing developed alley terminates at the south line of the applicant's property. A board fence was constructed on top of a small retaining wall which runs along the property line through the alley. The elevation at the alley is approximately three feet higher than the applicant's property. The vacation will eliminate a portion of undeveloped right of way, not needed for Public Use. RIGHT OF WAY CONDITIONS · Functional Classification Local Access · Existing R-O-W Width 12 feet · Proposed R-O-W Width N/A · Pavement Width None · Surface Type None · Curb and Gutter None · Sidewalks None November 7, 2000 Alley North of 11th Street Vacation Page 1 of 5 HEARING CONSIDERATIONS BMC 11.20.120 sets forth issues that the City Council needs to determine at the conclusion o£th¢ Vacation Hearing. These issues and the staffposition are: 1. Whether the street, alley or portion thereof is no longer required for public use and vacation of the described portion will better serve the public good. Staff Position: This portion of the alley is not required for public use. 2. Whether the vacation is consistent with the City Comprehensive Plan. Staff Position: The proposed vacation does not conflict with the Comprehensive Plan. 3. Whether continued use of the proposed vacation as a public way is not of such public benefit as to justify the costs of maintenance. StaffPosition: Vacating this improved right-of-way will reduce the City's maintenance responsibility in this area. 4. Whether substitution of a new and different thoroughfare would be more useful to the public. Staff Position: No other thoroughfare would improve circulation in this area. 5. Whether conditions may so change in the future as to provide a greater public use or need than presently exists. Staff Position: There is no anticipated future public use. 6. Whether objections to the proposed vacation are made by owners of private property abutting the same. Staff Position: No objections have been received from any abutting property owners to date. November 7, 2000 Alley North of 11 m Street Vacation Page 2 of 5 SHORELINE ACCESS This portion of right-of-way does not provide shoreline access. UTILITIES All private utility companies have been contacted. There are no existing utilities located within this portion of the right-of-way. SUFFICIENCY OF SIGNATURES The request for the vacation was made by more than two thirds (on a front footage basis) of the property owners abutting the property to be vacated. COMPENSATION This is a Class III right-of-way as defined in Ordinance 4664. This type of right-of-way is limited to a public easement which is generally unimproved and for which no public funds have been expended in the acquisition or in the acquisition or providing improvements. No compensation is required for Class III right-of-way. STAFF COMMENTS No objections were noted from Police, Engineering, City Attorney or Community Development staff. The Fire Department requires that Fire Department Access shall be maintained per the Uniform Fire Code and Bremerton Roadway Standards via another route. This vacation will not adversely impact the current ability of the Fire Department to access these lots. Staff recommends that this Street Vacation be approved as requested without modification. November 7, 2000 Alley North of 11th Street Vacation Page 3 of 5 AGENDA BILL BREMERTON CITY COUNCIL 1. SUBJECT: ORDINANCE # ., FOR AGENDA OF: January 24, 2001 VACATING A PORTION OF 15TM STREET ORIGINATING DEPT: PW&U Engineering Div. LOCATED WEST OF WARREN AVENUE ORIGINATOR Jennifer Strehler, City Engineeg'l~ AND EAST OF BROADWAY AVENUE. DATE SUBMITTED: January 16, 2001 f"""~ 2. CLEARANCES: (comment on bac/ff~e, sjt~,,,~_C,~ '" 3. EXHIBITS Director, Public WorksfUtilities ~,~.&~ A. Ordinance # City Attorney B. Site Map. Director, Community Development C. Staff Report Council Budget & Finance Committee~~,~ I (,~oq0~ Operations Committee ~ D~ ~ ~ MAYOR ~ . _..,a ~ r-,,,__ COUNCIL PRESIDENT [:~,"'~--"~'f.¢~.,. ~ 4. SU~Y STA~'EMENT AND REQUIREMENT FOR COUNCI-L/ACTIO~ The City has received a petition from Olympic College to vacate a portion of 15th Street located west of Warren Avenue and east of Broadway Avenue. A hearing date of January 24, 2001, was set by City Council on December 27, 2000. Posting of the hearing notices and mailing to the adjacent property owners have been completed in accordance with State law and Bremerton Municipal Code. This right-of-way consists of two-lane improved right-of-way with sidewalk on the north side. No other property owners abut this portion of the right- of-way. The connection to Warren Avenue has been blocked due to traffic conflicts on Warren Avenue. The roadway served for parking and access to the local residences that are to be removed when the applicant redevelops the properties. The vacation is being requested by Olympic College to consolidate their property for a campus redevelopment site. Specific items for City Council consideration are outlined in the Staff Report. The request before the City Council is to approve, disapprove, or modify this vacation of a portion of 15th Street located west of Warren Avenue and east of Broadway Avenue. On December 27, 2000, the City Council denied a request by the petitioner (Olympic College) for waiver of the required compensation in the amount of $13,450.15. As of this date, the petitioner has not submitted the required compensation to the City. Although City Staff recommends approval on first reading, if compensation is not received prior to second reading Staff does not recommend passage of the attached ordinance at this time. 8. RECOMMENDATION: A. Motion to the attached Ordinance, [vacating a portion of 15"' Street located west of Warren Avenue and east of Broadway Avenue, on first reading. B. Motion to ~ass Ordinance # . a pOrtion of 15 Street located west of Warren Avenue and east of Broadway Avenue, on second reading. 9. RESPONSIBLE OFFICIAL: City Engineer ENFORCEMENT OFFICIAL: N/A EXPIRATION DATE: REVIEW DATE: o ic o, c io tOG PULLED TABLED APPROVED DISAPPROVED COUNCIL DIRECTIVE 11. AGENDA BILL NO: 2. CLEARANCE COMMENTS: 5. IMPACT ON NON-PASSAGE: The hearing on the street vacation will not occur, and the rights-of-way will not be considered for vacation. 6. IMPACT ON STAFFING, BUDGETS, FACIIJlTIES, EQUIPMENT OR OTHER RESOURCES: Staffing: No impact. Budget: No impact Facilities/Equipment: No impact 7. RESEARCH SOURCES BMC 11.20 Vacation of Public Rights-of- Way RCW 35. 79 Streets ab, Agenda Bills 2001, Olympic College, 15th Street Vacation Filed for Record at Request of: When Recorded Return to: Name: Bremerton City Clerk Address: 239 Fourth Street Bremerton, WA 98337 Document Title: Ordinance No. Reference Number of Document Assigned or Released: Not Applicable Grantor's Name: City of Bremerton Grantee's Name: Not Applicable Tax Parcel #: Not Applicable. Abbreviated Legal Description: NE QTR & SE QTR, NE QTR SEC. 14, T.24 N., R.I.E., W.M., KITSAP CO., WA ORDINANCE # AN ORDINANCE Vacating a portion of 15th Street located west of Warren Avenue and east of Broadway Avenue. WHEREAS, Olympic College has petitioned to vacate this developed right-of- way; and WHEREAS, notice has been posted and published according to law; and WHEREAS, the City Council finds that the portion of the right-of-way set forth herein is not needed for present or future use and should be vacated to allow the abutting property owners to maintain the parcel, now therefore, Ordinance Vacating a Portion of 15th Street Page 1 '77 THE CITY OF BREMERTON DOES HEREBY ORDAIN: Section 1. Vacation. The following rights-of-way are hereby vacated to the adjoining property owners. THAT PORTION OF 15TM STREET LYING WEST OF THE WESTERLY RIGHT OF WAY OF WARREN AVENUE AND EAST OF THE SOUTHERLY EXTENSION OF THE EAST LINE OF THAT PARCEL OF LAND CONVEYED TO THE CITY OF BREMERTON BY DOCUMENT FILED UNDER RECORDING NO. 146745. EXCEPT ANY PORTION LYING WITHIN THE RIGHT OF WAY DEEDED TO THE CITY OF BREMERTON BY DEED FILED UNDER RECORDING NO. 7905040045. SITUATE IN THE NORTHEAST QUARTER AND SOUTHEAST QUARTER OF THE NORTHEAST QUARTER SECTION 14, TOWNSHIP 24 NORTH, RANGE 1 EAST, W.M., KITSAP COUNTY, WASHINGTON. Section 2. Reservation of Easements. a. An easement is reserved for the City of Bremerton, Public Works and Utilities Department for operation, maintenance and repair of water lines, storm lines and sanitary lines over, under and upon the following real property: THAT PORTION OF 15TM STREET LYING WEST OF THE WESTERLY RIGHT OF WAY OF WARREN AVENUE AND EAST OF THE SOUTHERLY EXTENSION OF THE EAST LINE OF THAT PARCEL OF LAND CONVEYED TO THE CITY OF BREMERTON BY DOCUMENT FILED UNDER'RECORDING NO. 146745. EXCEPT ANY PORTION LYING WITHIN THE RIGHT OF WAY DEEDED TO THE CITY OF BREMERTON BY DEED FILED UNDER RECORDING NO. 7905040045. SITUATE IN THE NORTHEAST QUARTER AND SOUTHEAST QUARTER OF THE NORTHEAST QUARTER SECTION 14, TOWNSHIP 24 NORTH, RANGE 1 EAST, W.M., KITSAP COUNTY, WASHINGTON. b. An easement is reserved for Cascade Natural Gas, Puget Sound Energy, Q West and AT&T for operation, maintenance and repair of gas, power, telephone and cable lines over, under and upon the following described real property: THAT PORTION OF 15TM STREET LYING WEST OF THE WESTERLY RIGHT OF WAY OF WARREN AVENUE AND EAST OF THE SOUTHERLY EXTENSION OF THE EAST LINE OF THAT PARCEL OF LAND CONVEYED TO THE CITY OF BREMERTON BY DOCUMENT FILED UNDER RECORDING NO. 146745. Ordinance Vacating a Portion of 15th Street Page 2 EXCEPT ANY PORTION LYING WITHIN THE RIGHT OF WAY DEEDED TO THE CITY OF BREMERTON BY DEED FILED UNDER RECORDING NO. 7905040045. SITUATE IN THE NORTHEAST QUARTER AND SOUTHEAST QUARTER OF THE NORTHEAST QUARTER SECTION 14, TOWNSHIP 24 NORTH, RANGE I EAST, W.M., KITSAP COUNTY, WASHINGTON. Section 3. Effective Date. This vacation shall become effective ten (10) days from passage and publication. APPROVED by the City Council of the City of Bremerton this day of ,2001. PASSED by the City Council of the City of Bremerton this day of ,2001. JOHN E. LAW, Council President APPROVED this day of ,2001. LYNN HORTON, Mayor ATTEST: KATHLEEN McCLUSKEY, City Clerk Ordinance Vacating a Portion of 15th Street Page 3 ~m STREET VACATION REQUEST 15th STREET ENGINEERING STAFF REPORT CITY COUNCIL HEARING DATE: January 24, 2001 PREPARED BY: Gunnar Fridriksson S U M MARY A. Applicant: Olympic College Michael Connolly 1600 Chester Avenue Bremerton, WA 98337-1699 Location: 15th Street located west of Warren Avenue and east of Broadway Avenue B. Attachment: None BACKGROUND The applicant has petitioned the City of Bremerton to vacate a portion of 15th Street Right-of-Way that abuts their property (approximately 3,900 sf). No other property owners abut this portion of the right-of-way. The connection to Warren Avenue has been blocked due to traffic conflicts on Warren Avenue. The roadway served for parking and access to the local residences that are to be removed when the applicant redevelops the properties. RIGHT-OF-WAY CONDITIONS · Functional Classification Local Access · Existing R-O-WWidth 30 feet · Proposed R-O-W Width N/A · Pavement Width 24 feet · Surface Type Asphalt · Curb and Gutter Standard curb on the north side ° Sidewalks 4 foot sidewalk on the north side November 15, 2000 15th Street Vacation Page 1 of 4 HEARING CONSIDERATIONS BMC 'I'1.20.120 sets forth issues that the City Council needs to determine at the conclusion of the Vacation Hearing. These issues and the staff position are: 1. Whether the street, alley or portion thereof is no longer required for public use and vacation of the described portion will better serve the public good. Staff Position: This portion of 15th Street is not required for public use. The connection to Warren Avenue has been blocked due to traffic conflicts on Warren Avenue. The roadway served for parking and access to the local residences that are to be removed when the applicant redevelops the properties. 2. Whether the vacation is consistent with the City Comprehensive Plan. Staff Position: The proposed vacation does not conflict with the Comprehensive Plan. 3. Whether continued use of the proposed vacation as a public way is not of such public benefit as to justify the costs of maintenance. Staff Position: Vacating this improved right-of-way will reduce the City's maintenance responsibility in this area. 4. Whether substitution of a new and different thoroughfare would be more useful to the public. Staff Position: No other thoroughfare would improve circulation in this area. 5. Whether conditions may so change in the future as to provide a greater public use or need than presently exists. Staff Position: No future use of this portion of right-of-way is anticipated. November 15, 2000 15th Street Vacation Page 2 of 4 6. Whether objections to the proposed vacation are made by owners of private property abutting the same. Staff Position: The petitioner, Olympic College, is the only abutting property owner. SHORELINE ACCESS This portion of right-of-way does not provide shoreline access. UTILITIES All private utility companies have been contacted. Puget Sound Energy, Cascade Natural Gas, Qwest Communications and AT&T will retain easements. Permanent utilities easements are to be reserved for the existing City water, sewer and storm lines. SUFFICIENCY OF SIGNATURES The request for the vacation was made by 100% of the owners abutting the property to be vacated. COMPENSATION The compensation amount has been determined utilizing the Kitsap County Assessor's land value of the abutting properties. The amount is $13,448.16, which is equal to one-half of the average property value of the abutting properties weighted on a front footage basis. STAFF RECOMMENDATION City Attorney, Police, Fire, Engineering and Community Development staff notes no objections to the proposal. Staff recommends that this Street Vacation be approved as requested with easements reserved for all existing utilities. November 15, 2000 15th Street Vacation Page 3 of 4 AGENDA BILL BREMERTON CITY COUNCIL 1. SUBJECT: ORDINANCE # , FOR AGENDA OF: January 24, 2001 VACATING A PORTION OF CHESTER ORIGINATING DEPT: PW&U Engineering Div~ AVENUE NORTH OF 13TMSTREET. ORIGINATOR Jennifer Strehler, City Engineer _,~_~ DATE SUBMITTED: January 16, 2001 2. CLEARANCES: (comment on back~ 3. EXHIBITS Director, Public Works/Utilities ~'~' ~ ,,- A. Ordinance # Site Map. B. Director, Community Development C. Staff Report. Council Budget & Finance Committee~m,~2t~ Operations Committee [v~,~_ ~-~ ENDORSEMENT I~OP~TZ APPROVEDBY COUNCIL PRESII~NT FOR S3,1BMITTAL: 4. SUMMARY STATEMENT AND REQUIREMENT FOR COUNCIL ACTION: The City has received a petition from Olympic College to vacate a portion of Chester Avenue located north of 13th Street. A hearing date of January 24, 2001, was set by City Council on December 27, 2000. Posting of the hearing notices and mailing to the adjacent property owners have been completed in accordance with State law and Bremerton Municipal Code. This fight-of-way consists of two-lane improved roadway with sidewalk on the west side. No other properties abut this portion of the fight-of-way. The vacation will eliminate a piece of undevelotJed right-of-way and will increase the buildable area of the abutting property. A portion of the proposed area to be vacated has been maintained as landscaping and the adjacent property owners have used a portion as gravel shoulder parking. The vacation is being requested by Olympic College to improve the property for redevelopment. Specific items for City Council consideration are outlined tin the Staff Report. The request before the City Council is to approve, disapprove, or modify this vacation of a portion of Chester Avenue located north of 13th Street. 8.. RECOMMENDATION: A. Motion to approve the attached Ordinance vacating a portion of Chester Avenue located north of 13t~ Street, on first reading. B. Motion to pass Ordinance # vacating a portion of Chester Avenue located north of 13th Street, on second reading. 9. RESPONSIBLE OFFICIAL: City Engineer ENFORCEMENT OFFICIAL: N/A EXPIRATION DATE: REVIEW DATE: 10. NOTICE OF ACTION PULLED TABLED APPROVED DISAPPROVED COUNCIL DIRECTIVE 11. AGENDA BILL NO: ~ [- ~'~4 2. CLEARANCE COMMENTS: 5. IMPACT ON NON-PASSAGE: The hearing on the street vacation will not occur, and the fights-of-way will not be considered vacation. 6. IMPACT ON STAFFING, BUDGETS, FACILITIES, EQUIPMENT OR OTHER RESOURCES: Staffing: No impact. Budget: No impact Facilities/Equipment: No impact 7. RESEARCH SOURCES BMC 11.20 Vacation of Public Rights-of-Way RCW 35. 79 Streets ab, Agenda Bills 2001, Olympic College, Chester Avenue Filed for Record at Request of: When Recorded Return to: Name: Bremerton City Clerk Address: 239 Fourth Street Bremerton, WA 98337 Document Title: Ordinance No. Reference Number of Document Assigned or Released: Not Applicable Grantor's Name: City of Bremerton Grantee's Name: Not Applicable Tax Parcel #: Not Applicable. Abbreviated Legal Description: SW QTR & SE QTR, NE QTR SEC. 14, T. 24 N., R.1E. W.M., KITSAP CO., WA. ORDINANCE # AN ORDINANCE Vacating a portion of Chester Avenue located north of 13th Street. WHEREAS, Olympic College has petitioned to vacate this developed right-of- way; and WHEREAS, notice has been posted and published according to law; and WHEREAS, the City Council finds that the portion of the right-of-way set forth herein is not needed for present or future use and should be vacated to allow the abutting property owners to maintain the parcel, now therefore, Ordinance Vacating a Portion of Chester Avenue Page 1 THE CITY OF BREMERTON DOES HEREBY ORDAIN: Section 1. Vacation. The following rights-of-way are hereby vacated to the adjoining property owners. THAT PORTION OF CHESTER AVENUE LYING SOUTH OF THE SOUTH LINE OF THAT PORTION OF CHESTER AVENUE VACATED BY CITY OF BREMERTON ORDINANCE NO. 3596, RECORDED UNDER RECORDING NO. 8008210038, AND LYING NORTH OF THE NORTH RIGHT OF WAY OF 13TM STREET, SITUATE IN THE SOUTHWEST QUARTER AND THE SOUTHEAST QUARTER OF THE NORTHEAST QUARTER SECTION 14, TOWNSHIP 24 NORTH, RANGE 1 EAST, W.M., KITSAP COUNTY, WASHINGTON. Section 2. Reservation for Emergency Vehicles. Emergency vehicle access of a minimum of twenty feet shall be provided in accordance with the 1997 Uniform Fire Code along the entire length of the vacated streets. Such access requirement shall be subject to modification upon approval by the Fire Chief of the City, of a campus-wide emergency access plan to be developed by Olympic College. Section 3. Reservation of Easements. a. An easement is reserved for the City of Bremerton, Public Works and Utilities Department for operation, maintenance and repair of water lines and sanitary lines over, under and upon the following real property: THAT PORTION OF CHESTER AVENUE LYING SOUTH OF THE SOUTH LINE OF THAT PORTION OF CHESTER AVENUE VACATED BY CITY OF BREMERTON ORDINANCE NO. 3596, RECORDED UNDER RECORDING NO. 8008210038, AND LYING NORTH OF THE NORTH RIGHT OF WAY OF 13TM STREET, SITUATE IN THE SOUTHWEST QUARTER AND THE SOUTHEAST QUARTER OF THE NORTHEAST QUARTER SECTION 14, TOWNSHIP 24 NORTH, RANGE 1 EAST, W.M., KITSAP COUNTY, WASHINGTON. b. An easement is reserved for Cascade Natural Gas and Puget Sound Energy for operation, maintenance and repair of gas and power lines over, under and upon the following described real property: THAT PORTION OF CHESTER AVENUE LYING SOUTH OF THE SOUTH LINE OF THAT PORTION OF CHESTER AVENUE VACATED BY CITY OF BREMERTON ORDINANCE NO. 3596, RECORDED UNDER RECORDING NO. 8008210038, AND LYING NORTH OF THE NORTH RIGHT OF WAY OF 13TM STREET, SITUATE IN THE SOUTHWEST QUARTER AND THE SOUTHEAST QUARTER OF THE NORTHEAST QUARTER SECTION 14, TOWNSHIP 24 NORTH, RANGE 1 EAST, W.M., KITSAP COUNTY, WASHINGTON. Ordinance Vacating a Portion of Chester Avenue Page 2 Section 4. Effective Date. This vacation shall become effective ten (10) days from passage and publication. APPROVED by the City Council of the City of Bremerton this day of ,2001. PASSED by the City Council of the City of Bremerton this day of ,2001. JOHN E. LAW, Council President APPROVED this day of ,2001. LYNN HORTON, Mayor ATTEST: KATHLEEN McCLUSKEY, City Clerk Ordinance Vacating a Portion of Chester Avenue Page 3 #~J ~ ~,,~o DOOR CB 1,0 x 2.0 194.6 6" N TOP=193. ~' TO TOP: ~OTTO~:lgt6 OIL SEPARATOR/0~RFLD~ _ ~O~ ASPHALT C8 1.0 X 2.0 TOP 194.8 BOTTOM 170.1 ~217 ~ ~/1~ 8LDG CB 1,5 X 2,0 TOP 17~,1 N TOP=171.9 BO~0M 170.1 FF=200.( I CONC / / ASPHALT / (NO ENTRY) i o /~ I ORA~L /i CD ! FF=217.~ I I I I , ;S t ~ r/8 WA~R=193.3 2.2 X 1.8 TOP 199 ~ ~/9 N86~ ~ ;/9 I BRICK CORBEL E ,NV 19&9 CB TOP ,99., ~ X2.0 ~~D IS CENTRED )TTO~=196.0 6' N INV J98.~ g8.2 6" ??? N INV ~98.4 ~0~0~=~94.2 ~1~ AV:: u~co~ A'v1~. ..... :-_~~ ~ - ~T 'A' BROADW~ AVE. ~0 ~ 37.~ 4Z36 42.~ 42.36 4320 50 53 ~ 36 ~ 31.77i 39.27 ,~ r W~REN AVE. STREET VACATION REQUEST CHESTER AVENUE ENGINEERING STAFF REPORT CITY COUNCIL HEARING DATE: January 24, 2001 PREPARED BY: Gunnar Fridriksson SUMMARY A. Applicant: Olympic College Michael Connolly 1600 Chester Avenue Bremerton, WA 98337-1699 Location: Chester Avenue north of 13th Street to that portion of Chester previously vacated per Ordinance 3386. B. Attachment: None BACKGROUND The applicant has petitioned the City of Bremerton to vacate a portion of Chester Avenue Right-of-Way that abuts their property (approximately 10,524 s0. No other properties abut this portion of the right-of-way. The vacation will eliminate a piece of undeveloped right-of-way and will increase the buildable area of the abutting property. A portion of the proposed area to be vacated has been maintained as landscaping and the adjacent property owners have used a portion as gravel shoulder parking. See the attached application for a sketch of the area in question. RIGHT-OF-WAY CONDITIONS · Functional Classification Local Access · Existing R-O-W Width 60 feet · Proposed R-O-W Width N/A · Pavement Width 36 · Surface Type Asphalt · Curb and Gutter Standard curb on the west side · Sidewalks 5 foot sidewalk on the west side November 15, 2000 Chester Avenue Street Vacation Page I of 4 C~--~ lc,Z.._ HEARING CONSIDERATIONS BMC 11.20.'120 sets forth issues that the City Council needs to determine at the conclusion of the Vacation Hearing. These issues and the staff position are: 1. Whether the street, alley or portion thereof is no longer required for public use and vacation of the described portion will better serve the public good. Staff Position: This portion of Chester Avenue Street is not required for public use. 2. Whether the vacation is consistent with the City Comprehensive Plan. Staff Position: The proposed vacation does not conflict with the Comprehensive Plan. 3. Whether continued use of the proposed vacation as a public way is not of such public benefit as to justify the costs of maintenance. Staff Position: Vacating this improved right-of-way will reduce the City's maintenance responsibility in this area. 4. Whether substitution of a new and different thoroughfare would be more useful to the public. Staff Position: Ordinance 3386 made Chester Avenue a dead end street. No other thoroughfare would improve circulation in this area. 5. Whether conditions may so change in the future as to provide a greater public use or need than presently exists. Staff Position: No future use of this portion of right-of-way is anticipated. November 15, 2000 Chester Avenue Street Vacation Page 2 of 4 6. Whether objections to the proposed vacation are made by owners of private property abutting the same, Staff Position: The petitioner, Olympic College, is the only abutting property owner. SHORELINE ACCESS This portion of right-of-way does not provide shoreline access. UTILITIES All private utility companies have been contacted. Puget Sound Energy, Cascade Natural Gas and AT&T will retain easements. Utilities easements are to be reserved for the existing City sewer and storm utilities. All easements for existing utilities will be released upon redevelopment of the surrounding properties and alley and arrangements made for the utility relocations. Care shall be practiced for any work be done in the vicinity of the centerline monument at the north side of the right of way of 13th Street. SUFFICIENCY OF SIGNATURES The request for the vacation was made by 100% of the owners abutting the property to be vacated. COMPENSATION The compensation amount has been determined utilizing the Kitsap county Assessor's land value of the abutting properties. The amount is $16,206.77, which is equal to one-half of the average property value of the abutting properties weighted on a front footage basis. This amount has been paid by the applicant to the City of Bremerton. STAFF COMMENTS City Attorney, Department of Community Development, Police and Engineering supports this vacation. The Fire Department requires that Fire Department Access shall be maintained per the Uniform Fire Code and Bremerton Roadway Standards. Staff recommends that this Street Vacation be approved as requested with easements reserved for all existing utilities. November 15, 2000 Chester Avenue Street Vacation Page 3 of 4 Looking North to Chester Avenue November 15, 2000 Chester Avenue Street Vacation Page 4 of 4 Looking North to Chester Avenue November 15, 2000 Chester Avenue Street Vacation Page 4 of 4 AGENDA BILL BREMERTON CITY COUNCIL 1. SUBJECT: RESOLUTION# aOx'Tq(9, FOR AGENDA OF: January24,2001 SETTING A HEARING DATE OF FEBRUARY 21, ORIGINATING DEPT: PW&U Engineering Div. 2001, FOR VACATING THE ALLEY LOCATED ORIGINATOR Jennifer Strehler, City Engineer BETWEEN NAVAL AND ROOSEVELT DATE S~___..,)MITT, E.,I~. ~January. 10, 2001 AVENUES AND BETWEEN 6TMAND 7TMSTREETS. ~~'~ ~'~ 2. CLEARANCES: (comment on back j~,rn.eCs~ 3. EXHII~TS Director, Public Works/Utilities X.~(t'?,~~,., A. Resolution # City Attorney k~ '~.~ ~: B. Site Map. Director, Community Development ~__,~(MJa~ ~ Council Budget & Finance Committee ~)~ ~ Operations Committee COITION PPROV D 4. SUMMARY STATEMENT AND REQUIREMENT FOR COUNCIL ACTION: The City has received a petition from S.E. Grainger Development Group to vacate the alley located between Naval and Roosevelt Avenues and between 6th and 7th Streets. This right-of-way consists of a paved alley that abuts the applicant's properties and is utilized as access to those properties. The vacation is being requested by S.E. Grainger Development Group to develop the site for construction of a new retail outlet using the entire block. The City Council is requested to establish a hearing date of February 21, 2001, to consider the proposed vacation. 8. RECOMMENDATION: Move to pass Resolution #~7cl (,o setting a hearing date of February 21, 2001, for the vacation of the alley located between Naval and Roosevelt Avenues and between 6th and 7th Streets. 9. RESPONSIBLE OFFICIAL: City Engineer ENFORCEMENT OFFICIAL: N/A EXPIRATION DATE: REVIEW DATE: 10. NOTICE OF ACTION CO~CIL D~CT~E 11. AGE~A BILL NO: ~/- ~ ~ S 2. CLEARANCE COMMENTS: 5. IMPACT ON NON-PASSAGE: The hearing on the street vacation will not occur, and the rights-of-way will not be considered for vacation. 6. IMPACT ON STAFFING, BUDGETS, FACILITIES, EQUIPMENT OR OTHER RESOURCES: Staffing: No impact. Budget: No impact Facilities/Equipment: No impact 7. RESEARCH SOURCES BMC 11.20 Vacation of Public Rights-of- Way RCW 35.79 Streets ab, Agenda Bills 2001, S.E. Gminger Development Group RESOLUTION NO. ~"'~ q (~ A RESOLUTION proposing the tight-of-way vacation of the alley located between Naval and Roosevelt Avenues and between 6th and 7~ Streets. BE IT RESOLVED BY THE CITY COUNCIL OF THE CITY OF BREMERTON THAT: 1. A petition has been received to vacate the alley located between Naval and Roosevelt Avenues and between 6~ and 7th Streets. 2. A public heating will be held on February 21, 2001, at 5:30 p.m. or later at the Bremerton City Hall, 239 Fourth Street, Bremerton, Washington, to take public comment or consider written objections to the vacation. PASSED by the City Council of the City of Bremerton This day of ,2001. JOHN E. LAW, Council President  /I. 6[ ,-- o o ,- OE'6 I. ,-_ r--- r--- r--- ~L/) 1~ ;~6 I. ~'~6t 7/7 A/__TA Y _Z 7_7A _75' 0 0 ~ ._-'00 ~ 7;00i5 Lll " " ~ goo~z ' gO07; "- gOOU /_007; gO0;~ .~ ,,,"" 600U 600U ~, [0;~ 01-07; (./~) ~[OU E' I, Og ,, g[o~z ~ g~OU ( 9[Og -..-Z 7W'A AGENDA BILL BREMERTON CITY COUNCIL 1. SUBJECT: FOR AGENDA OF: January 24,2001 ORIGINATING DEPT: BPD Appeal of Determination ORIGINATOR: Clyde W. Stricklin of Non-significance DATE SUBMITTED: January 18,2000 Nance Weslon Place Plan Amendment 2. CLEARANCES: (comment on back 3. EXHIBITS: ,'~//" ~ ~ ~ l~' ' if necessary) 1) Proposed FOF, COL, And Order (~J~0r~g~~/~ _ _ 2) Proposed Plan Map Amendment / Ns s PA % ~~~~---~ 4) Applicant's Appeal ~'s~isk~nt ~ity Attorney ENDORSEMENT INFORMATION . APPROVED BY COUNCIL PRESIDENT FO~ SUBMITTAL: MAYOR COUNCIL PRESIDEN ~ 4. SUMMARY STATEMENT AND REQUIREMENT FOR COUNCIL~ACTION: The City received an application for a comprehensive plan amendment from Roger Nance and Victor Target. A~a Environmental Checklist in the format required by the WAC as adopted by the BMC was reviewed by the city staff and a determination of non-significance issued by the director of BPD on 12/ll/2000.(See exhibits 2 and 3). The BMC authorizes one open record appeal to the City Council of a determination of non-significance which is a type two Administrative Decision. An appeal was filed in a timely manner by Paul Scheyer and Helen Miller.(See Exhibit 4.) The comprehensive plan amendment application itself is being considered by the planning commission with other comprehensive plan amendment applications and is not the subject of this appeal. See continuation... 5. RECOMMENDATION: I move that the appeal of the DNS issued by the Director of BPD for the Nance Weslon Place comprehensive plan amendments application be denied and the attached Findings of Fact conclusions of law and order be adopted. 6. RESPONSIBLE OFFICIAL: Director BPD ENFORCEMENT OFFICIAL: Director BPD EXPIRATION DATE: NA REVIEW DATE: NA 7. NOTICE OF ACTION COUNCIL DIRECTIVE: DATE: 8. AGENDA BILL NO: 0 J 2. CLEARANCE COMMENTS (cont.): None 4. SUMlXgtRY STATEMENT (cont.): At issue: An Appeal has been filed of the Determination of Non-significance for the Victor Target and Roger Nance Plan amendment application for Weslon Place. On the city form the Appellant alleges that the Determination of Non- significance is invalid because: 1. There is a ~SEPA timing Problem." 2. "Lack of process per Critical land ordinance." 3. ~Lack of storm water review per City Storm Water Ordinance and DOE requirements~, 4. "Failure to evaluate cumulative impact on the remaining single family residents of Weslon Place". 5. "Lack of SEPA review for Boundary Line Adjustment" and also 6. ~Lack of compliance with BMC 21.0-2.845(b).~ Appellants also indicate their believe that "Boundary line adjustments are not SEPA Exempt.~ No other written statements or documentation were submitted with the appeal. The appeal was filed in a timely manner. The applicants relief sought is "Reprocess application in conformance with all existing regulations giving due and proper consideration to the requirements for an environmental impact statement" 10. IMPACT ON NON-PASSAGE: Up holding the appeal would not accomplish any purpose. A new Checklist would be required but another new publication of the Determination of Non significance is not required because the checklist would only provide additional information with the same conclusion. WAC 197-11-340(3) (c) only requires additional notice is the DNS is withdrawn or revised. 11. IMPACT ON STAFFING, BUDGETS, FACILITIES, EQUIPMENT OR OTHER RESOURCES Additional staff time would be involved to redraft the checklist. 12. RESEARCH SOURCES: SEPA Rules Chapter 197-11 Specifically WAC 197-11-680 Appeals, WAC 197-11- 060 (c) (Optional), WAC 197-11-060 (4) Impacts. See exhibits and the City of Bremerton Comprehensive Plan, Housing Element and Commercial lands pages 42-43.and the Plan Environmental Impact Statement 1995.Also of Record the Critical Lands Ordinance and City of Bremerton Storm Water Regulations. Exhibit 1 BEFORE THE CITY COUNCIL OF THE CITY OF BREMERTON In re ) DETERMINATION OF ) Appeal PL00-0080 NONSIGNIFtCANCE ) NANCE WESLON PLACE ) ORDER PLAN AMENDMENT APPLICATION ) The Bremerton City Council, having heard this matter on open session on January 24, 2001, and being otherwise fully advised, finds, condludes, and orders as follows: FINDINGS OF FACT Not at issue: The Comprehensive Plan amendment applications are not under appeal. The City Planning Commission has not made a determination on any applications and still has scheduled additional open record hearings on all the plan amendments for final determinations. It has held public hearings on this and other applications for oral testimony and is still accepting (as of this date) both oral and written public testimony. The Weslon Place Comprehensive Plan application is not under appeal since the planning commission has not acted on the comprehensive plan applications or Zoning amendments nor any aspect of any project. Issue 1 Timing: The appellant did not elaborate as to the nature of the timing problem in any way. BMC 21.12.160(a) identifies public notice requirements and state "Whenever the city issues a DNS under WAC 197-11-340(20 or under WAC 197-11-360(30 the city shall give public notice as follows: (1) if public notice is required for a nonexempt license, the city shall state whether a DS or DNS has been issued and a DS notice when comments are due." The city published a notice on 12/13/2000 that a DNS was issued on 12/11/2000 for Weslon Place .According to WAC 197-11-310(6) (c)" If an open record pre-decision hearing is required, the threshold determination shall be issued at least fifteen days before the open record pre-decision hearing." The City Planning Commission has not completed its review of the comprehensive Plan amendment applications and additional public pre- decision hearings are currently scheduled on February 20, 2001 (well over 15 days) such that all timing requirements have been satisfied. Issue 2 Critical areas: The Critical Lands Ordinance applies to project actions therefore the comprehensive plan amendment applications are not subject to its requirements until they reach the project phase of development. Issue 3:Storm Water Regulations: The Storm Water Ordinance and associated DOE requirements also applies to project actions therefore Comprehensive Plan amendment applications are not subject to their requirements until they reach the project phase. Issue 4:Cumulative Impacts on other Weslon Place properties: Review of impacts beyond the area of the application is not required by WAC. Section WAC 197-11-060(c~(i) states, "Proposals are similar if when viewed with other reasonably foreseeable actions, they have common aspects that provide a basis for evaluating their environmental consequences together, such as common timing, types of impacts, alternative or geography. This section does not require agencies or applicants to analyze similar actions in a single environmental document or require applicant to prepare environmental documents on proposals other than their own." (emphasis added). Issue 5 Boundary Line adjustment SEPA: Additional redevelopment for as many as 7000 units was reviewed in the City Comprehensive Plan and SEIS in 1995. This impact was analyzed by the city Plan SEIS. A Boundary Line Adjustment apparently occurred prior to the current DNS consideration. A Boundary Line Adjustments was approved under the jurisdiction of Kitsap County and not the City of Bremerton. No additional lots were created. SEPA regulates governmental actions and the City of Bremerton was not a party to the Boundary Line Adjustment. Any appeal to the Boundary Line Adjustment should have been make to Kitsap County. In any event, no significant environmental impact would result with the Boundary Line Adjustment that occurred because Its impact was reviewed generally in the Plan SEIS. The Plan amendment application impact was more specifically reviewed as required in the Environmental Checklist submitted. Issue 6 Compliance with BMC 21.02.845(b): This section of the BMC is the decision format for a type II decision which in this case is the SEPA determination. Only the SEPA Determination is at issue. The required format is that used by the City for its Environmental Checklist as required by the 197-11-060 as specified in WAC 197-11-330 (1) (a) "Environmental checklist if used" and (b) any additional information or (c) mitigating measures or regulations. The Submitted Environmental Checklist is in the required format. Additional information is provided by the city comprehensive plan SEIS, and mitigating measures are routinely applied through adopted regulations at the project phase. The Determination of Non-significance is a a written conclusion and the Environmental Checklist is the written findings of fact as required. CONCLUSIONS OF LAW Issues 1-6 have been properly reviewed and considered by the appropriate city official. The City Planning Director finding of a Determination of Non-Significance meets the city requirements as specified in the BMC and WAC. The appellants have not met their burden of proof that the DNS was incorrectly issued. The Director of BPD Determination of Non- Significance is UPHELD and the appeal DENIED. NOW THEREFORE it is ORDERED, ADJUDGED and DECREED as follows: The appeal of the DNS issued by the Director of BPD for the Nance Weslon Place comprehensive plan amendment application be denied and the attached Findings of Fact, conclusions of law are adopted. Dated the day of , 2001 BREMERTON CITY COUNCIL John Law, Council President Approved as to form Assistant City Attorney Attest City Clerk Nanceapl. doc t / COMP P~N LDR to, C-G '~'- SF-3 to GB NANC~ -- KITSAP WAY~ESLON ~LACE ~C~ .-_ ._ ~ ~ ~ ~OfeetfromO~ Co~c~c~"(C-O). S~d ~[~ ~~c~t ~ ~o~c~ ~oc~tcd o~ ~c s~dc o~ ~ ~7 z~o~t~ 550 ~cet o~ e~c~ side o~cs~o~ ~zcc. S~cc~c~ ~e ~o~c~ ~o~cd ~cs ~ ~c Sourest ~u~c~ o~ Scc6o~ ~6, · o~s~ 2~ No~, ~ 0~ ~ ~.~. ~d ~c~udcs ~ o~ ~ ~c~s ~b~cd 0~, 02~, 025, 0~6, 0~4, 0~5, 0~6 ~d 075. ~'~ CITY OF BREMERTON BUILDING AND PLANNING DEPARTMENT ~4W~ DETERMINATION OF NONSIGNIFICANCE Description of Proposal: The City of Bremerton proposes to amend its. Comprehensive Plan and Optimum Land Use Map through city and public initiated amendment applications which will be applied city wide as well as property specific. The approved amendments will be adopted by ordinance and are often accompanied by related rezones to maintain consistency between the City's Plan and Zoning maps. The purpose of the following project specific amendment is to fulfill the City's requirements under the Growth Management Act. Kitsap Way at Weslon Place: Roqer and Jennifer Nance as applicants are requestin.q a Map Amendment and Map rezone of properties on or adjacent to Kitsap Way and Weslon Place, consistin.q of a proposed chan.qe from a Comprehensive Plan desi,qnation, Low- density Residential (LDR) to General and Hiqhway Commercial (CG) and a proposed chanqe from a Zonin.q Map desi.qnation, Sin.qle-famil¥ Residential (SF-3} to General Business (GB). Proponent: City of Bremerton Project Number: PL99-0001 Location of Proposal: City of Bremerton. Eight (8) separate and adjoining lots located on either side of Weslon Place where the street enters Kitsap Way. Five (5) of the eight (8) lots front on Kitsap Way. All of the lots are situated more than two hundred (200) feet south and southwest of the Ordinary High Water Mark (OHWM) of Oyster Bay. The total area affected by the proposed Comprehensive Plan Map and Zoning Map amendments consists of approximately two and a half (2.54) acres. Lead Aqenc¥: City of Bremerton Building and Planning Department The lead agency for this proposal has determined that it does not have a probable significant adverse impact on the environment. An environmental impact statement (ELS) is not required under RCW 43.21C.030(2)(c). This decision was made after review of a completed environmental checklist and other information on file with the lead agency. This information is available to the public on request. This DNS is issued under WAC 197-11-340(2); the lead agency will not act on this proposal for at least 14 days from the date below. Comments must be submitted by: 5:00 p.m., December 26, 2000. Responsible Official: Christopher R. Hugo Position/Title: Director of Building and Planning Phone: (360) 478-5243 Address: 286 Fourth Street, Bremerton WA 98337 Date of Issue: December 11, 2000 Date of publication: December 13. 2000 You may APPEAL this determination to: Bremerton City Council NO LATER THAN: December 27, 2000. You should be prepared to make specific factual objections. Contact: James Coombes to read or ask about the procedures for SEPA appeals. Phone: (360) 478-5845 PART ELEVEN - FORmaLS P'a~. ose oI'che~kti~:: t,, 7 /' -' propos~ ~ pra~abIc si~fi~ ~v~c ~a~ on ~c qu~ of ~c ~a~& ~ac p~csc of ~ ~ ~ m p~', ~c~aaa :o ~c~p you ~d ~c agcn~: i6~' ~ac~ ~m yo~ ~pa~ (~d ~o r:~uc: or avci~ i~a~ ~m ~c ~a~saL c~ be ~e) ~d to 5eip ~e ag~ ~:ide w~c~ ~ ~ ~ ~aa=o~ for applic~=: ~ :n~o~mi :b~: ~ you :o des~:e some b~ic ~%~noa about yo~ propose. Gov~c=~ .~wcr ~c ~mo~ briery, ~ ~c moz prsc=e ~=on ~o~ or ~ve ~e b~ dmc. ipaoa you c~ :o ~er ~c ~cs=a~ ~om yo~ o~ absmwaUo~ or p~jcc: pl~ ~q~out ~e aced :o ~c ~. ~'yau ready do nat ~wc:, or ~ a ~o= do~ nor a~iy ~o yo~ pmpa~ ~te "do sar ~ow" or "docs =or ~iy." Co~lets ~m sueda= =ow my avoid ~c:~' dehys Some ~==o~ ~ abou~ govc~cn~ re,anco, ~ch ~ zo~g, shorc~c. ~d ~=r~ dcsi~=o~. ~cr =u~=o~ gyou ~ ~you ~ve ~obl~, ~e gov~m~ ag~ci~ ~ ~ you. :~ ~c~ ~==o~ ~iy to ~ p~ of yo~ p~po~ cvm ~' you p~ to ~ ~ over a p~od of ~: or zg~ to w~c~ you ~b~: ~ ~ ~y ~ you to ~ yo~ ~ or pro~ds a~=o~ ~m=on r~a~biy ~be q/=i~for nonRrq~ec: propose: Co~lc~ ~ chs:~ for no~cs: p~, sv~ ~cu~ ~ao~ ~y be ~d "docs not appiy." ~ cc~ic~= ~c SL~P~~ S~ FOK NONT~ A~QNS ~ D). Fcr :onproje~ ~c=o~ ~e :sf=mcss ;= ~: ch~ to ~e wor~ "projc:;" "z~h~=" ~d "prope~' ar Z'~" sbc'~s .. N~c of proposed projcc; 2..<~ ~d phone amber of agp~c~t ~d conrac: pc=on: 7. Do you ~av: ~y p~ for ~: ad~aa~ :x~m~ or ~:r acax~U r:ht:~ ~ or :a~::~:d ~ ~ pra~l? L~ ' ¢~I~. 'WAC (4/15/98) [Ch. 197-11-WAC---p 5.31 9. Do you lc:ow who',her ~ppLi~ions arc c~v~:d, by your prapos;4? :my gove~m~,t approvals or pe:'::nts '&mt w4.11 be :cc.-deal for your ~=.tmsak a'k:=ov, m. ' - iS. Loca=on of 'ac .m'oposa. L Give su/-aZc:em ..'m;or-.,,.,zcon ~or a pecan, to umierxamd the FreZ'~.se !ac=tiaa of yom: proposed .=raN-z'-, mctudmg a street aclckre=s, it' any, and sec=an. ,.awusm=,. ~act :-,rage, Lf 'maw. Lf ~ pra~asat, wautct actor o'.'~ a ra.ugc .=ra',qde :ile rage ....... or botmciaries of me site's). .%ovide a legal d~ser:'p. =or.,. sir~ =la~ ,4mmw ma=, and :oooerat~kic reasonably available. W'hiie you should submk any .atz.~ recruured by the zge=~/, you zre not rem.ti.tee to 4tmLicaa maps ar .=ia.us sui:mlttcd w~ any permit appiicaaons related to tals c~c=kSst TO ~ CO,,~'L~-rF_~ ~Y ~,-uc~vr ~v.~u^-rzas .~,o~c-~' us~ a.-<_'.-' I. a. Gcacral dcsc:-i.~dou of thc ske (c~ctc oat): Flat, roLliag, h.LUy, s~ slopes, mou~mi~ous, b. Wha~ is the s~c.-'pcs~ slope on t~c sk¢ (approximar~ pcrce=~ slope)? [Ch. 19'7-11 WA.C--p. 54] WAC (4/15i98) TO BE COMI~LETED BY .%P?LIC.;uN'T ~VALI/A~ON F.' c. Wtmt gcneraI .~TP~ of soils ~z~ fo~ ou the m: (for ~1~. dray, s~cL _~r4vel, pc~, murk)? If you k~aw ~e ciassi:lS~ion of a.zriculmral sofia, ~- ~ ~d ao~ ~y ~e ¢a~an (far ~i~, ~ ar ~ ~pascd m~:s ~a ~duc~ or con~o[ ¢~sio~ or =~m ~a~ ~a ~c ~ ~ ~y: odom. md~l wood ~ok:) d~ co~c=o= ~d '~'~m mc proj~: = co~l:::d? If b..~c ~r: ~y o~-skc so~:s of :~io~ or odor ~[ ~y ~c:~ yo~ propose? If ~cn~y d~cn%c. c. Pmposod me--cs ~o rcduc: or con=ol ~sio~ or o~ ~:c~ to ~, ~ ~y: WAC (4/1~/98) } ( / ICh. i9:-11 WAC--p. TO BE G'Oh~m~l~ BY',~PPT-ZC.M4T EV.~.U~'I'~ON FOR 3. Wat~ ~ 5~ce: md pm~ ~cs. ~a~rap~t~. sm~ w~t s~ or ~vcr it flows ~ta. ~c~7 ~y~ pic=c ~oe ~ :~c~ a~bie pl~. 3) ~te ~ ~t of~ ~d ~edge ~i ~t wo~d bc p~c~ ~ ar ;~ved ~m s~c= ~tcr or wed~ ~d m~cate ~e =ca of~e si~ ~t wo~d be ~ 4) W[II the propos~l require ~.-'f=ce water, wi~&-~v.-als ar diversions? Give des~p. Unn, pm'pose, Md lpprox~.~e .~u~==es ~'lc~own. Does ~e pr .crposaJ mvoive ~ny discharges o£waste m~te.--ia~ to s'm-:.'~c= war~-s? If so, d=sc~'=c thc L'ypc of wxstc :nd a~cci:~[ed volume of d/sch~rgc. 2) Deacn'be wzstc rma£erial r. tuat w~ be ~c~ged into ~e ~d ~om s~fic ~ ar o~ so~, · my (for ex~le: Domestic s~vage; ~1, cou~g ~e follo~g ~cah...; a~~; etc.). Desire ~ g~ s~e of ~e ~ ~e n~cr af~ch ~stc~, ~c =~ber ofho~es to be se~cd (~ ~pp~blc), or ~e a~cr of ~ or h~ ~c ~st~s) ~ c~cc~d ~ se~e. ICh. 197-11 WAC---p. 561 WAC (4/15/98) 2) Could wzs:e mat~%s e;t~r. _zro;d or s-uffac= ~,-aters? If so, §e~e:-aIly descffoe. a. Circle any birds a~d animals ',vhich i~av¢ be.-m obse:-vcd o~ or =~ ~c sim or ~e ~otm :o be o= or ne~ ~e si:e: ~h: b~s, sa~o~ =ou~ hc~g, shcllficN o~cr: b. Lm~ ~y ~eate=ed or ea~ge~d ~cci~ ~o~ to be on or n~ ~c ske. 6. E-er~ and n=nu-:zl resources :. Vv-~t ~mc~ o£~c'~_ (c!~c, ~ g~, o~ wood s:ovc, so~) ~ bc ~ed ~ m~: ~e :o~Ic~d proj~ts en~ ~ce~'? D~oc w~c~c: X ~ be ~cd for ~. Would yo~ projec: a.ffec: the poc~.~al ,,~e ofsoI~ .-ne'~'__y_. by zdj~:~ prop~'~s? ~ so, ~e:ally d~sc~¢. :. W-aa: kiacis of cncr~, co~s~rvanon fc:~r~s are mcluc~d mr. be pLaz~ of ti:ds !:rmposal? La: other proposed me~.~ures :o r:duc= or con=oi ~er~'y impact, k* a~y: special emerzc=cy servic:s 'dm: rn~§ht be require~ 2] P':oposed m~.vares m reduce or can=o[ envirommenml he.ch h~.-.~rds, if ~ny: b. '.N a Lie i) ~v't~ q~p~s o£ ~,oLs¢ e.~ ~n the a~ which ~y ~ff~c~ yo~ proj~c~ {for ~x~pl~: 2) ~t ~es =d leve~ of uo~c wouid bc ~eated by or ass~ated ~ ~e project o= a shon-te~ or a lau~-tc~ basis (for ex~ptc: ~c, com~cdo~ o~mdo~ o~er)? h~- ~te w~t ho~ no~c wo~d come ~om ~c si[e. ICh. 197-1i WAC~. SSI WAC (4/15/98) I~i~I'A Rul~ :..~ra~t=~)' hew ~y people '~ouid :==ide ar '~ark m ~c ca~le~d proj~7 j. AF=ro~elv how =v peoole would ~= k. Pro~ed me~ t~ avoid or r~fiuc~ ~Iac~mem ~pac~. ff ~y: WAC (4,'15/98) [Cia. 197-11 WAC--p. ':. W¥,a~ view~ ia ~c i-~ediam vicinity wa~ M ~ed or ob~? :. ~osed m~ ~o red~: or canal a~c=c ~, k' ~ i !. Light ~d gt~e ~. ';~[ ~e of Eght or g~e ~ ~e propos~ produce? ~t ~e of ~y would ~m~? h. Card hght or gt~e ~ ~e ~hed 9mj~: he a safew ~d or ~teffere ~ c. %~t =~g off-site ~o~cei orE~t or gl~e ~y ~=c: yo~ propo~? ~. ~oposed me~ ~o reduc= or con=o{ ~t ~ g~e ~m, ~' my: ICh. 197-11 WAC--p. 60] / / ~ WAC (4/15/9g) .-. Proposed me'asurcs to reduce or consol L,-n~-~cu on re~::~om mclu~g r~=:uan o~ poP, cs :o bc pros~dcd by ~c projc:: or apphc~u k'~y: ~]. ~o~c and c~mr~ pr~e~'=~on a..~ ~ ~y ptac~ or objcc~ ~d o~ or proposed for, ~uo~L ~rc. or loc~ p~er- vamon r~gmz~ ~o~ :o bc an or nc= :o ac si~? ~ so, g~n~y d~m~c. ~ ~Fo~c: '.~o~ ~o be on or hex: ~o ~c i~. T~o~o~ a. id=nm~ pubEc s=:=u ~d ~'~ys scrag mc si:c, =d d~= p~osed ac=~ ~o ~c c~g s=e~ ~c~ Show on si:~ pi~, ~' ~y. c. How ~y p~g ~ac~ would ~s compts~cd proj~: Mvc? How ~y would ~c praJcc: WAC (4/15/98) i 17 [Ch. 19%11 WAC--p. 61] ' f. Public ser"4c~s :. Would thc proj~: r~su/t m ~ increased ne~-d for pubhc ~4c~ (for ~Ic: ~ p~ re'am pohc~ pm~=a~ h~m c~e, schwa, a~cr)? ~ sc, gen~y d~c~oe. b. ~. aascd ~ to :~d. uc-. ar co~o[ d~e'~.. Lu~.uac'm an publ./¢ s,~'v/c~, Lf a.~y. KKPA Rules TO BE COMiPL.'mI'ED BY APPLIC..MN'T E'~,'Jd. UA~CN F AG~ USE ID. SL'P."L:_'"M~NT.-~L $1-1~---T FOR NON'PROJECT ACTIONS (da ao~ ~sc ~ shoe: for project, acUOns) B¢::u~e these aues~io~ ~r: ye:-. / ~enc.--al. i~ may be hc!pful m feud ~em Lu conjtmc=o~ ~rh ~e ~is~ o£ t. he e!=..me:rs of'.he '~\'-~,cn -.~..~ve?'~$ these ques'Jans, be ~,,'-~'-. a£ the e.,o:en~ the proposo.L or the ~/'pes of ,c:vi=es bX:!¥ :o result Sam ~e .-.;oposzL would, xffe:= the item ~t s ~=at~. inr~4.sitl,.' or at a f~ster ,-'.t; ~ ~'th= proposal .-,'~= not '-t=P. lem~ed. K=s'p. o~d hne/'~ nad h, 2enc,~l I. Ho,, wouJd ',be proposal be ~3k:iy :o ,~-se ciiscbarge To wz~c:-.. ~?-.:ssio~s m :in pro- duc:am sm~=. or x'ie~se o£ :o~c or ~dous subs~c=: or prodncna,~ o/'no~Se? !~-.apased. me~--mr=s ro avoid or rcduc.- such in ~a-re~s~s :re: 2. How wouJd thc proposal be L~cely :a a.ffec: pima:s. ~nimai~. 15si:, or nm'me lit-c? PT. ot)oscd, m:.~.~ to ",ro~:: or ::,,~.'.~e p[nntS, ammalc, tl~h or ~ llt': ~-:: 2. Ho*,' wouJd '~,e ~ro~:asal be ~J.kely ro d,-'zi::: =:~ergT_ or .natural resou, m~? How wo~d ~ Fropos~ be ~:iy ro ,~: or ~ec: ~o~}, semi,ye ~e~ or ~:~ des~:~ed (or :hgibte or '~der stud'.') for gove~ protecno~ such ~ xxqC~ess, xxq~ ~d sc:mc rivers. ~:ere:ed or en~gered saezies ~bl~k ~to~c or Proposed m.~:s-u:es m pre:::: s'.:zh ::s¢,-'-z:s or m ~void or reduce iz-,p, acrs axe: WAC (4;15/98) [ / ~ ICh. 197-I1 WAC--p. 631 .:k'.o~ascd .?.c:surcs :o :void or rcduc: skorc~;---".- md :.~d usc ;~. ac:s ~r:: ?=agased :nc~ur~ to rcduc-' ar ~and to such [Ch. I97-1I WAC--p. 64] WAC (4/15/98) /Do DECLARATION OF MAILING RE: Determination of Nonsignificance issued on the 11th day of December 2000, regarding the "Nance-Kitsap Way/Weslon Place Rezone". I am the Office Assistant with the City of Bremerton Department of Building and Planning. On the 13th day of December 2000, I caused a copy of the attached Determination of Nonsignificance to be sent via first-class mail to the individuals on the attached mailing list. This address information was provided from the City Attorney's Office, Kitsap County Auditor's Office, and Bradley Scott Realty Inc. (Chris Wray). I declare under penalty of perjury under the laws of the State of Washington that the foregoing is true and correct. Executed at Bremerton, Washington this 13th day of December 2000. HARRY CUSSENS EARL & MOLLY CLARE L,a~ROCHE PO BOX 9000 PETERSON c/o Penny Sever BUFFALO NY 14231 8532 BENDER CIRCLE NE PO BOX 4290 BREMERTON WA 98311 Palm Springs, CA 92263-4290 J HORSLEY BAYSHORE WEST FC OLSON 3611 Prince William Dr. CONDOS 924 SHOREWOOD DR #5 Fairfax, VA 22031 400 WARREN AVE #450 BREMERTON WA 98312 BREMERTON WA 98337 DA\rID WHEELER DOLORES TRAVERS RICHARD VALENTINE 6605-31 st St. Court NW 1226 Crescent Terrace 924 Shorewood Drive #9 Gig Harbor, WA 98335 Sunnyvale, CA 94087 BREMERTON WA 98312 IRENE MORIARTY GEORGE DASHO MARJORIE HEIDENREICH 924 SHOREWOOD DR #11 14-71 KITSAP LAKE RD NW 924 SHOREWOOD DR #B13 BREMERTON WA 98312 . BREMERTON WA 98312 BREMERTON WA 98312 LORETTA LANKSBURY GEORGIA GAlL WILLIAM IRION 924 SHOREWOOD DR # 14 924 SHOREWOOD DR #B 15 924 SHOREWOOD DR # 16 BREMERTON WA 98312 BREMERTON WA 98312 BREMERTON WA 98312 OPAL MOORE TILLIE WAGNER BOYD & JUNE HUNTER 924 SHOREWOOD DR #B 18 924 Shorewood Dr. #20 924 SHOREWOOD DR #B22 BREMERTON WA 98312 Bremerton, WA 98312 BREMERTON WA 98312 RON & JOYCE HARRISON BETT1 BAKER BRUCE LARSON PO Box 311 924 SHOREWOOD DR #C27 924 SHOREWOOD DR #C28 Lakebay, WA 9834%0311 BREMERTON WA 98312 BREMERTON WA 98312 JACK & JOAN RICHARD B SHATTUCK GERALD & D1ANNE VAN PECKENPAUGH ATTORNEY AT LAW FOSSEN 22520 87TM PL W 4102 NW ANDERSON HILL RD 1729 NW SILVER ST EDMONDS WA 98026 SILVERDALE WA 98383 BREIV[ERTON WA 98311 BRADLEY & DONNA HALL ROBERT DENNY ROGER & JENNIFER NANCE 905 WESLON PL DIANNA EDWARDS JR BREMERTON WA 98312 918 WESLON PL 1440 MADRONA DR BREMERTON WA 98312 BREMERTON WA 98312 NOR_¥k& MOON BROOKE COOPER RICK POPE 4622 KITSAP WAY 4826 KITSAP WAY SUSAN MALLET-F-POPE BREMERTON WA 98312 BREMERTON WA 98312 919 WESLON PL , BREMERTON WA 98312 / SETH & JACKIE FRANKLIN MARY MCCABE JOHN & MAXINE FITZWATER 4840 KITSAP WAY 9~4 SHOREWOOD DR #39 924 SHOREWOOD DR #ES0 BREMERTON WA 98312 BREMERTON WA 98312 BREMERTON WA 98312 LOIS MERCHANT IINI RADCLIFF NORTHWEST MORTGAGE 924 SHOREWOOD DR #D47 PO BOX 1790 405 SW 5TM ST BREMERTON WA 98312 SILVERDALE WA 98383 DES MOINES lA 50328 JOHN & ROSALIE GUERRERO ROSALIE DORMAIER EARL HAYNES 535 DAVD DR 3435 DONIDA DR 924 Shorewood Dr. g60 BREMERTON WA 98310 BREMERTON WA 98312 Bremerton, WA 98312 PAUL & PHYLLIS VOGEL JOHN MACDONALD KATHRYN WALTON 12144 COVINA CT 924 SHOREWOOD DR #65 924 SHOREWOOD DR gF67 S.MLATOGA CA 95070 BREMERTON WA 98312 BREMERTON WA 98312 ELIZABETH FAY SOCORRO MARTINEZ JACK & DOLORES 924 SHOREWOOD DR gF68 924 SHOREWOOD DR #F69 DONINGER BREMERTON WA 98312 BREMERTON WA 98312 PO BOX 762 BREMERTON WA 98337 PATPdCIA LINDSEY CONRAD ESSER LORETTA LANKSBURY 924 SHOREWOOD DR #72 4224 KITSAP WAY 924 SHOREWOOD DR g14 BtLEMERTON WA 98312 BREMERTON WA 98312 BREMERTON WA 98312 WESLEY & MAR1AN JIM REED BRAD & DONNA HALL COOPER 2000 MADRONA PT DR 905 WESLON PL 930 WESLON PL BREMERTON WA 98312 BREMERTON WA 98312 BREMERTON WA 98312 PAUL HOSKINSON VE & GL POWERS OLYMPIC VIEW ASSOC 2790 FERNAN HILL RD 2802 HEFNER AVE 2741 WHEATON WAY COEUR D'ALANE ID 83814 BREMERTON WA 98310 BREMERTON WA 98310 E BECHTEL - ELLEN JOHNSTON ESTHER JAGER JEFFREY & JOSEF1NA 875 WOODSIDE RD gl 12 2707 WHEATON WAY BROOKS REDWOOD CITY CA 94061 BREMERTON WA 98310 2824 HEMLOCK ST BREMERTON WA 98310 HARRISON MEMORIAL WILLIAM & J.~dqET STUMP MARGARET CASTRO HOSPITAL 840 CALLAHAN gA 2833 HEMLOCK 2520 CHERRY AVE BREMERTON WA 98310 BREMERTON WA 98310 BREMERTON WA 98310 DAVID WINGO LESLIE RAMEY DD FORSMAN PO BOX 2226 736 CALLAHAN DR 2707 WHEATON WAY BREMERTON WA 98310 BREMERTON WA 98310 BREMERTON WA 98310 MARVIN RANDALL JOE JACK - PEGGY DAVIS ALLEN BROOKS 2828 HEMLOCK ST 7109 TRACYTON BLVD NW DONNA EBENTHEUER BREMERTON WA 98310 BREMERTON WA 98311 2716 15TM STREET BREMERTON WA 98312 CHET & ELMA SIMPSON GHODRAT & LILA AFLATOONI MICHAEL KENNEDY 2817 HEMLOCK ST PO BOX 1550 3716 HARBEL DR BREMERTON WA 98310 SILVERDALE WA 98383 BREMERTON WA 98310 DAVID JONES CORNELIUS ROSS ADVANCED MEDICAL IMAGING 2711 WHEATON WAY PO BOX.~,.1"'~ 2528 WHEATON WAY #10~_ 9" BREMERTON WA 98310 BREMERTON WA 8o 10 SILVERD.M_~E WA 98383 PI-III ,IP & LINDA HOLT MICHAEL GAWENKA NINO & LIANE PIGATO 5164 ERLANDS PT RD NW 929 WESLON PL 3232 RIDGEVIEW DR .NE BREMERTON WA 98312 BREMERTON WA 98312 BREMERTON WA 98310 JAMES ROBINSON MARK & MARTHA ROWELL CHARLES J. WARNER 4904 KITSAP WAY 913 WESLON PL 4616 KITSAP WAY BREMERTON WA 98312 BREMERTON WA 98312 BREMERTON WA 9831 HOWARD & RUTH WHITNEY VIOLET & HALE REYNOLDS TONY & MILDRED 610 WARREN AVE 924 SHOREWOOD DR #E59 ZAMPELLA BREMERTON WA 98337 BREMERTON WA 98312 4908 KITSAP WAY BREMERTON WA 98312 ROBERT A DORMAIER SR JOANNE & DAVID FORBES GEORGE & HELEN MILLER 34.~_ NW DONIDA DR 928 WESLON PL PO BOX 788 BREMERTON WA 98312 BREMERTON WA 98312 BREMERTON WA 9833 7 ELMER LINCE RICHARD & ELIZABETH EMERY JEFFREY SCHWE1GER 2316 E 11TM ST 924 SHOREWOOD DR #36 C/O Picket Prop Mgmt BREMERTON WA 98310 BREMEKTON WA 98312 9601 Provost Road NW. #201 Silverdale, WA 98383 CAROL ROOT JOHN DROGE PETER MIKESELL 924 SHOREWOOD DR #D45 924 SHOREWOOD DR #54 924 SHOREWOOD DR #57 BREMERTON WA 98312 BREMERTON WA 98312 BREMERTON WA 98312 CHARLES & VIRGINIA CASH BARBARA KING MARJORIE & HAROLD PO BOX 191 4029 SW ALTADENA AVE HARRIS SILVERDALE WA 98393 PORTLAND OR 97201 943 ASH PL BREMERTON WA 98310 GERTUDE OSTER CAROLYN MARY KELLY JAY TEE CO MGMT 924 SHOREWOOD DR//46 924 SHOREWOOD DR 4/52 PO BOX 1790 BREMERTON WA 98312 BREMERTON WA 98312 SILVERDALE WA 98383 CARLA BENNETT DALE ANGERMAN JR CHARLES KRIEGER 924 SHOREWOOD DR #C32 PO BOX 890027 PO Box 756 BP, EMERTON WA 98312 DALLAS TX 75389 Leavensworth, WA 98826 RICHARD & JENNIFER YALE LOIS MERCHANT FED 8: ELEANOR KAHN 5457 NW Glen Firs Lane 924 SHOREWOOD DR #D47 924 SHOREWOOD DR #53 Silverdale, WA 98383 BREMERTON WA 98312 BREMERTON WA 98312 C KEITH BIRKENFELD EDITH ALLEN JOHN BISHOP 428 HARBORVIEW DR SE 2121 MADRONA PT DR 1117 SHOREWOOD DR BAINBRiDGE ISLAND WA BREMERTON WA 98312 BREMERTON WA 98312 98110 BREMERTON HOUSING DANIEL COTE FRANK & PAULA DEEBACH AUTHORITY 77 VICTORIA MANSIONS 2115 MADRONA PT DR 110 RUSSELL RD NAVIGATION WAY BREMERTON WA 98312 BREMERTON WA 98312 PRESTON LANC PR22YZ UK DENNY'S 1NC DEPT OF FISH & WILDLIFE DEPT OF FISH & WILDLIFE PO BOX 1600 ATTN: JIM BRENNAN ATTN: STEVE PENLAND ROWLETT TX 75030 502 HIGH ST. STE 108 PO BOX 43155 PORT ORCHARD WA 98366 OLYMPIA WA 98504-3155 DEPT OF NATURAL RESOURCES IRMG~ DEVYNER VERN & DOROTHY DOWNY ATTN: SEPA CENTER 1430 MADRONA PT DR 1540 MADRONA PT DR PO BOX 4'7015 BREMERTON WA 98312 BREMERTON WA 98312 OLYMPIA WA 98504-7015 JACK W EVANS STAN EVERETT STEVEN & CHRISTY 4220 FRIDA MARIA CT 1452 MADRONA PT DR FANCHER CARMICHAEL, CA 95608-2017 BREMERTON WA 98312 1822 MADRONA PT DR BREMERTON WA 98312 DICK FEEK FRANCIS GASKILL WILLIAM FRAISER 4031 SUNDOWN DR 1539 MADRONA PT DR 1131 S NATIONAL BREMERTON WA 98312 BREMERTON WA 98312 BREMERTON WA 98312 WJ GILBERT PAUL GRANT SAM GOLD 2016 MADRONA PT DR 1418 MADRONA PT DR 2101 MADRONA PT DR BREMERTON WA 98312 BREMERTON WA 98312 BREMERTON BrA 98312 LINDA HAHN BETTY HAYNES ANN M HENRY 2109 MADRONA PT DR 1427 MADRONA PT DR 1502 SHOREWOOD DR BREMERTON WA 98312 BREMERTON WA 98312 BREMERTON WA 98312 MAYNARD HOFFMAN BERNARD & SUZANNE PHILLIP & LINDA HOLT 1715 S MARINE DR HOLLAND 5164 ERLANDS PT RD ', ,~ 1801 S MARINE DR BREMERTON WA 98~ 1,. BREMERTON WA 98312 BREMERTON WA 98312 DON HOLTZ FRANK KIDRICK KITSAP COUNTY DCD 1542 MADRONA PT DR 1530 MADRONA PT DR 614 DIVISION ST - MS 36 BREMERTON WA 98312 BREMERTON WA 98312 PORT ORCHARD WA 98366 J)uoPE LIVING TRUST WAYNE & GALLAGHER FLOYD JACKSON 1109 SHOREWOOD DR IVERSON 1431 MADRONA PT DR BREMERTON WA 98312 2002 MADRONA PT DR BREMERTON WA 98~ BREMERTON WA 98312 CALVIN JOHNSON JACK LACKMAN ROBERT LAFOUNTAINE 1010 BRENTWOOD DR 1714 MADRONA PT DR 4629 MARINE DR PL BREMERTON WA 98312 BREMERTON WA 98312 BREMERTON WA 98312 EF & GK LAMB ALETIA JANE LEE JACK & STEPHANY LOWRY 1415 MADRONA PT DR 2020 MADRONA PT DR 2132 MADRONA PT DR BREMERTON WA 98312 BREMERTON WA 98312 BREMERTON WA 98312 MARSCHALL FAMILY ROBERT MATHWIG D^VD & LINDA MCCLELLAN PARTNERS 3331 KITSAP WAY 2116 MADRONA PT DR 810 S 124TM ST BREMERTON WA 98312 BREMERTON WA 98312 SEATTLE WA 98168 KATHLEEN MCCLUSKEY GARY & KAREN NETWIG EVELYN NYLUND 67179 SILVER BEACH DR N 2017 MADRONA PT DR 2110 MADRONA PT DR BREMERTON WA 98311 BREMERTON WA 98312 BREMERTON WA 98312 WILLIAM PALMER GARY PEHLING WARREN PERET CONS/rLT.~NTS IN PLANrNING & DESIGN 1525 MADRONA PT DR 2145 MARINE DR PO BOX 6 BREMERTON WA 98312 BREMERTON WA 98.~" 1.~ PORT ORCHARD WA 98366 BARBARA RITCHIE SHIRLEY ROBBINS GINGER ROBERTSON DOE - ENVIRON RVW SECT1ON 2012 MADRONA PT DR 1456 MADRONA PT DR PO BOX 47703 BREMERTON WA 983 t2 BREMERTON WA 98312 OLYMPIA WA 98504-7703 DAVE & CAROL SUE ROGERS MARK & MARTHA ROWELL PAUL & MARGARET 1804 MADRONA PT DR 913 WESLON PL SCHEYER BREMERTON WA 98312 BREMERTON WA 98312 2111 MADRONA PT DR BREMERTON WA 98312 R.W. SCHOFIELD WILLIAM E. SCHOURUP RON & VIRGINIA SESSOUS 1314 SHORE"WOOD DRIVE PO BOX 1060 PO BOX 2936 B.KEMERTON. WA 98312 TRACYTON,WA 98393 POULSBO. WA 98370 DEAN SINGER BILL SESKO JAN & TERRE SKELLY PO BOX 4895 3536 ARSENAL WAY 2720 YACHT HAVEN WAY BREMERTON, WA 98312 BREMERTON, WA 98312 BREMERTON, WA 98312 WAYNE & EVELYN SUPER 8 MOTELS NW II SUQUAMISH TRIBE STEWART 7515 TERMINAL STREET SW ATT: PHYLLIS MEYER 1114 SHOREWOOD DRIVE TUMWATER. WA 98501 PO BOX 498 BREMERTON, WA 98312 SUQUAMISH, WA 98392 DAVID SWANSON WESLEY TALLMAN VICTOR TARGETT 17234 NE 126TM PL 1543 MADRONA PT DR. 2110 MADRONA PT DRIVE REDMOND. WA 98052 BREMERTON. WA 98312 BREMERTON. WA 98312 ANDREW & SUE VEITCH SANDRA VERHELST EVELYN D VULLIET 12634 NE CEDARBROOK RD 4310 KITSAP WAY 2442 NW MARKET NO. 35 AURORA, OR 97002 BREMERTON, WA 98312 SEATTLE. WA 98107 W. WALDEN ALMEDA WILSON COLLEEN WOLFE 1720 MADRONA PT DRIVE 3800 NOME DRIVE 1524 MADRONA PT DKIVE BREMERTON, WA 98312 BKEMERTON. WA 98312 BREMERTON.WA 98312 RICHARD WRIGHT Grego~' & Karen Shildmeyer GERALDE & DIANNE 26609 ANSELL RD NW 1343 Jacobsen Blvd VANFOSSEN POULSBO, WA 98370 Bremerton, WA 98310 1729 NEW SILVER ST BREMERTON, WA 98311 Simpson College & Grad School BETTY JEAN WALKER COLUMBUC PROP. LLC c/o Rosalie Dormaier 4604 KITSAP WAY 7515 TERMINAL ST. SW PO Box 5137 BREMERTON, WA 98312 TUMWATER, WA 98501 Bremerton, WA 98312 CJMS ENTERPRISES INC. MITCHELL AIROLDI JIM MCABEE PO BOX 5390 924 SHOREWOOD DR #1 924 SHOREWOOD DR #5 BREMERTON, WA 98312 BREMERTON, WA 983 t2 BREMERTON. WA 98312 KAREN LAWLER LISA GORDON PETER KRISMER 924 SHOREWOOD DR #10 924 SHOREWOOD DR. #B17 PO BOX 835 BREMERTON, WA 98312 BREMERTON. WA 98312 BELFAI1L WA 98528-0835 NORMAN VENSON SARAH COMBS. CHARLES THOMPSON 924 SHOREWOOD DR #21 924 SHOREWOOD DR #24 924 SHOREWOOD DR #25 BREMERTON, WA 98312 BREMERTON, WA 98312 BREMERTON. WA 98312 ROLLAND DIBBLE JACK NICOLA DONNA TAYLOR-BARLAND 2025 WHEATON WAY, #102 924 SHOREWOOD DR #38 924 SHOREWOOD DR #51 BREMERTON, WA 98310 BREMERTON, WA 98312 BREMERTON. WA 98312 CAROLYN KELLEY JOHN DROGE GEORGE HUNTER 924 SHOREWOOD DR #52 924 SHOREWOOD DR #54 5900-48TH AVE S. BREMERTON, WA 98312 BREMERTON, WA 98312 SEATTLE, WA 98118 GERALDINE PARKER PATRICIA FREDERICKSON JOHN & SUSAN RAMSEY C/O RALPH HUTCHINSON 924 SHOREWOOD DR #66 924 SHOREWOOD DR #71 10408 NW 40TM BREMERTON, WA 98312 BREMERTON. WA 98312 YUKON. OK 73099 wes!on.lbl (12/t5/00) Army Corps of Engineers Dept. of Fish & Wildlife Dept. of Ecology Environmental Review Section Attn: Doris Small Environmental Review Section ~735 E. Marginal Way South 502 High St., Suite 108 PO Box 47703 Seattle, WA 98106 Port Orchard, WA 98366 Olympia, WA 98504-7703 ~e~. of Ecology/Shorelines Dept. of Natural Resources Kitsap Transit NW Regional Office South Puget Sound Region 234 S. Wycoff Attn: Alice Schisel PO Box 68 Bremerton, WA 98312 3190 160~ Ave SE Enumclaw, WA 98022-0068 ~eilevue, WA 98008-5452 Suquamish Tribe Dept. of Fish & WildLife Attn: Phyllis Meyers 600 Capital Way North (Stagency.lbl) (11-6-00) PQ Box 498 Olympia, WA 98501-0~91 Su~uamish, WA 98392 o d I--- ~ ~ ,__, r,,,' ~ ' ,, ';"', ~ 286 Foullh Street, Bremerton WA 98337 ~ m Bi'~EM [':RTON ~2 I'hnm': i360MTR-$275 Fax: (Mll)47h-5278 BUILDING D~F'A~] Requesl for Review of Decision of I)irector, Planning Commission or to Appeal a Cease & Desist Order Reference: Zoning, Code Xection 21.02. 9.?5 & 21. aZ 945 i iden Nliller, Paul Scheyer, ~'ayne lversen, Kathy (;allaghcr Request Pa~: ~O Forbes~.~me l;orb, e=s~ L~ick ~al'sha~hael ( llelen Miller el al ' P. (). (You: mailing ~d:css) tlelen Miller 373-085~___Paul Scheycr ~77. 7916 2 8,~m*d,',',t Il Pl,~Zwl4~,,r r. t9 ]>' /~ ;/ ;-' (['¢icphon~ Number) PIcot promdc a concise statement oP' d~e specific hndmg(s) or ~ncMsi:m(s} to bc rcv,m~ cd. t~}gcthcl wi& ~teml hcts clmmed to support your conten~ons. Use additioml paper if necessary Please provide a brief statement of the rehef sought ,'md the reasons wh? the d¢ctslotffactio,i should bc reversed, modified or remmlded Usc additional pages if necessary. t~ill~;iilt'l';itilill Ill (Iii' rt',lllil':'i!lelil'; lllr all l(In il'illlllll'lll;ll [llllim'l ~l;llUlllillli . , X , .. Appcll~t's S Fcc: E~view to CRy Council - $170.00 Review to Ptmm:g Comimss,on - $120 00 (Only applicable to a Cc;mc & Desist Order Appeal) Reviews will be scheduled to be heard before the Bremerton City Councd ;ts soon as p,:>ss~blc, allm~ :ng for adequate preparation and not~cc Y(I)I[ will receive written noti/]catlon ,~l'thc CO:lin:il h,':uine. {l:ttc marled to your address given above Ibc City Council decision is thc final lcgislatn'c decision. Las! printed 12/(/t/99 2:22 PNI{~:xMv Dt<mncn~s\Forn~q\Applications\Rcquest for Review of Decision a! Di reclor, doc