HomeMy WebLinkAbout02/13/01 AGENDA CITY COUNCIL MEETING AGENDA
TUESDAY- FEBRUARY 13, 2001
1. PRE-COUNCIL STUDY SESSION: 5:00 - 5:30 P.M.
A. General Council Business
2. GALL TO ORDER: 5:30 P.M.
A. Pledge of Allegiance
B. Invocation ~)~
3. CONSENT AGENDA
A. Minutes of Meeting - January 24, 2001 (#AB01-037)
B. Minutes of Meeting - January 31, 2001 (#AB01-038)
C. Minutes of Meeting - February 7, 2001 (#AB01-039)
4. CLAIMS/CHECK REGISTERS
5. COUNCIL MEMBER REPORTS
6. MAYOR'S REPORT
7. LEGISLATIVE REPORT
8. PUBLIC RECOGNITION - (Comments limited to 3-minutes)
9. NEW BUSINESS
A. Budget Adjustment No. 01-2 for Equipment Rental Fund 510 (#AB01-040)
B. Professional Services Agreement with Ryan, Sells, Uptegraft, Inc. (#AB01-041)
C. Professional Services Agreement Extension for City Council Representation on Issues
Relating to Rejection of City Attorney's Resignation and Acceptance of Withdrawal
(#AB01-042)
(>~\\~0~ '-D.~'d_get AdiH.~tm~.n'. . h._.~--~)1-3 for ,C, pe~;idl Counsbi (#/-~O 1-043)
10. PUBLIC HEARING - ORDINANCES
A. Ordinance (First Reading), Authorizing the Issue of General Obligation Bonds to Finance ,.~..~
the Clubhouse at Gold Mountain Golf Complex; and Accepting the Purchase Offer of Bank
of America (#AB01-044)
11. ADJOURNMENT OF MEETING
PUBLIC ANNOUNCEMENT: CITY STAFF WILL PRESENT THE RECOMMENDATION FROM THE
"COMBINED SEWER OVERFLOW REDUCTION FACILITY PLAN" A T THE NEXT COUNCIL
MEETING ON WEDNESDA Y, FEBRUARY 21, 2001 ....
AGENDA BILL
BREMERTON CITY COUNCIL
1. SUBJECT: FOR AGENDA OF: FEBRUARY 13, 2001
ORIGINATING DEPT.: CITY COUNCIL
MINUTES OF MEETING-- JANUARY 2b,, 2001 ORIGINATOR: JOHN E. LAW, PRESIDENT
DATE SUBMITTED: FEBRUARY 5, 2001
2. CLEARANCES: (Comment on back if necessary) 3. EXHIBITS:
ENDORSEMENT FI INFORMATION [1 APPROVED BY COUNCIL PRESIDENT FOR SUBMITTAL:
MAYOR COU NCI L PRESI DEN~,~'' ~ ~.:.~.~.-' _~'~ 2_.z~-=
4, SUMMARY STATEMENT AND REQUIREMENT FOR COUNCIL ACTION:
8. RECOMMENDATION:
9. RESPONSIBLE OFFICIAL:
ENFORCEMENT OFFICIAL:
EXPIRATION DATE:
REVIEW DATE:
10. NOTICE OF ACTION
PULLED I'1 TABLED [1APPROVED [1DISAPPROVED rl AMENDED Fl DATE:--3 A
COUNCIL DIRECTIVE:
11. AGENDA SILL NO.: O/~- ~_~~ ~ ~
(OVER)
2. CLEARANCE COMMENTS:
4. SUMMARY STATEMENT (CONTINUED):
5. IMPACT OF NON-PASSAGE:
6. IMPACT ON STAFFING, BUDGETS, FACILITIES, EQUIPMENT OR OTHER RESOURCES:.
7. RESEARCH SOURCES:
TAPES #1748 & #1749 UNAPPROVED DRAFT
CITY COUNCIL MEETING MINUTES
January 24, 2001
The weekly meeting of the City Council of the City of Bremerton was called to order in the City
Council Chambers, 239 4th Street, Bremerton, Washington, Wednesday, January 24, 2001, at 5:30
P.M., with Council President John Law presiding. Council members present were Jim Reed, Conrad
Esser, Carol Arends, David Farr, Mike Shepherd, Ed Rollman, Cecil McConnell, and Wayne Olsen.
Also present were Deputy City Clerk Paula Johnston; Special Counsel Glenna Malanca; and
Legislative Assistant Lori Smith.
The meeting opened with the Pledge of Allegiance led by Council Member Cecil McConnell, followed
by the invocation given by Retired Pastor G.T. Johnson formerly of Brownsville United Methodist
Church.
President Law made the following announcements:
1) Council held a Pre-Council Session in the Council Conference Room to discuss general Council
business; and
2) Item 3A - "Minutes of Meeting for January 17, 200~" would be pulled from the Agenda tonight.
CONSENT AGENDA - There were no Consent Agenda items tonight.
CLAIMS/CHECK REGISTERS
Vouchers audited and certified by the auditing officer as required by RCW 42.24.080, and those
expense reimbursement claims certified as required by RCW 42.24.090 have been recorded on a
listing that had been made available to the Council.
#0100 M/S/C (Esser/Arends) On January 24, 2001, the Council does approve for payment those
vouchers included and further described as follows: Checks 248632 and 248647 through 248834 in
the amount of $707,400.31; and Regular Payroll for the period ending January 15, 2001 in the
amount of $826,905.76. It was requested that in the future, the "Claims & Check Registers" were to
be provided a day ahead, providing additional time for adequate review by Council members.
Vote in favor of this motion: Olsen, Rollman, Shepherd, Farr, Arends, Esser, Reed, and Law
Abstained: McConnell
Motion carried: 8-Yes; and 1-Abstention
COUNCIL MEMBER REPORTS
Wayne Olsen provided a brief update on the construction project on Lebo Blvd.
Ed Rollman commented on the well attended Kitsap County Historical Society meeting held in the
Council Chambers last Saturday.
Mike Shepherd briefly reported on the District 5 meeting held last Thursday; and a discussion
session on the Endangered Species Act in which he participated.
David Farr reported that Districts 6 and 7 would be holding a joint District meeting in February to
discuss the proposed "Bremerton/Kitsap County Regional Government Center".
Carol Arends discussed several committees of which she is a member and commented that
transportation issues will be discussed at those committee meetings.
TAPES #1748 & #1749
City Council Reg. Mtg. Minutes
January 24, 2001
Page 2 of 6
MAYOR'S REPORT
Mayor Horton discussed the energy shortage, and stressed that we all need to do our part to
conserve energy. It was also reported that several electric companies being priced out in California
are now considering relocating the Pacific Northwest.
INFORMATION ITEM - Rob Schniedlet;, President of the Sinclair Landing Association; and Richard
Hayes, Executive Director of Kitsap Transit, provided a brief report on the Purchase & Sale
Agreement and quitclaim deed for the conveyance of a Navy parcel to the City for expansion of State
Route 304 at the ferry terminal.
LEGISLATIVE REPORT - There was no report this evening.
PUBLIC RECOGNITION
Don Larson, President of the Kitsap Diving Association, encouraged the Council to plant more trees '
in the City, and suggested that a local Boy Scout group could provide assistance.
Steven Smith discussed the potential of Bremerton, and encouraged the local people to "discover
our own City" rather than waiting for someone else "to discover us".
9A- PURCHASE EQUIPMENT FOR EASTSlDE CSO TREATMENT FACILITY (#AB01-021): John
Po_o.De, Wastewater Division Manager, reported that one 1 bid was received from U.S. Filter and
Kruger for the high rate clarification system necessary to the East Bremerton Combined Sewer
Overflow Treatment Plant. The bid was opened on January 18, 2001 and the bid was in the amount
of 996,840.00 including applicable sales tax. Additional purchases would be provided in the coming
months. It was confirmed that the City has purchased pumps and mechanical equipment from U.S.
Filter and Kruger in the past. Also, it was emphasized that implementation of this system would allow
the City to exceed water quality compliance standards as well as prepare the City for any additional
standards that may be set in the future.
There were no comments from the public
Mr. Olsen stepped out of the meeting at approximately 6:12 P.M. and returned at 6:15 P.M.
#1260 M/S/C/U (Farr/Arends) Move to approve the bid award for the High Rate Clarification System
to U.S. Filter and Kruger in the amount of $996,840.00 including tax, and authorize the Mayor to
execute a procurement contract in accordance with City policies and procedures.
10A - 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): The first reading of the ordinance was heard at the Council meeting on January 17,
2001. Treasurer Rich Hanna reiterated that the General Fund would operate in a deficit cash
position at certain times of the year. The Tax Anticipation Note (TAN) is the most economical way of
financing this cash flow need. He provided the final version Ordinance 4751 and the Tax Anticipation
Note, as well as the up to date offer of Bank of America.
There were no comments from the public.
#1415 M/S/C/U (Arends/Farr) Move to pass Ordinance No. 4751 on second reading authorizing the
issue of a Tax Anticipation Note; and accepting the offer of Bank of America.
Assistant City Attorney David St. Pierre replaced Special Counsel Glenna Malanca to advise the City
Council on the remainder of the Agenda.
TAPES #1748 & #1749
City Council Reg. Mtg. Minutes
January 24, 2001
Page 3 of 6
10B - PUBLIC HEARING & ORDINANCE (FIRST READING) FOR RIGHT-OF-WAY STREET
VACATION FOR ALLEY BETWEEN PLEASANT AVENUE AND HIGHLAND, NORTH OF 11TM
STREET PLACE (#AB01-022): Jeff Shea, Senior Engineer, mentioned that Louis A. Cobb has
petitioned the vacate the north 35 feet of the alley north of 11th Street Place between Pleasant
Avenue and Highland Avenue. A hearing date was set by City Council for January 24, 2001 at the
meeting held on December 27, 2000. This right-of-way consists of a portion of undeveloped right-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.
Mr. Farr excused himself due to his involvement in the sale of this property. He noted that Mr. Cobb
has tremendously improved the location.
There were no comments from the public.
#1605 M/S/C/U (Shepherd/Rollman) Move to approve ordinance, vacating the north 35 feet of the
alley north of 11th Street Place between Pleasant Avenue and Highland Avenue, on first reading.
10C - PUBLIC HEARING & ORDINANCE (FIRST READING) FOR RIGHT-OF-WAY STREET
VACATION FOR 15TM STREET BETWEEN BROADWAY & WARREN AVENUE (#AB01-025): Jeff
Shea, Senior Engineer, reiterated that Olympic College is the originator of this vacation request. The
right-of-way includes a 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
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.
A hearing date of January 24, 2001 was set by City Council on December 27, 2000. Also, on
December 27, 2000 the City Council denied a request by Olympic College for waiver of compensation
in the amount of $13,450.15. As of this date, Olympic College 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 ordinance at this
time. Posting of the hearing notices and mailings to the adjacent property owners have been
completed in accordance with State law and Bremerton Municipal Code.
Karl Jonietz, President of Olympic College, asked the Council to reconsider the waiver of
compensation. Chad Harrison student at Olympic College; and David Roman, Associated Student
President, provided comments in support of this request.
Elizabeth Buell, Don Larson, and Tom McDonald provided additional comments in support.
Steven Smith wanted to know how many of the students who attend Olympic College, commute from
outside of Bremerton. Mr. Jonietz clarified that Olympic College serves all of Kitsap County, and
reiterated that this proposal would benefit the City.
Phillip Lane, Vice President of Olympic College, as well as Mr. Jonietz, provided additional
information to support the request for waiver. Mr. Reed and Mr. Esser asked for additional
information, and Mr. Jonietz responded that following a comparative analysis of community college
parking availability within Washington state, it was determined that even after parking improvements,
Olympic College would still have a 300-400 parking spaces shod-fall.
5
TAPES #1748 & #1749
City Council Reg. Mtg. Minutes
January 24, 2001
Page 4 of 6
#3077 M/S/C/U (FardOIsen) Move to adopt ordinance on first reading, vacating a portion of 15th
Street located west of Warren Avenue and east of Broadway Avenue; and granting the waiver
requested by Olympic College in the amount $13,450.15.
10D - PUBLIC HEARING & ORDINANCE (FIRST READING) FOR RIGHT-OF-WAY STREET
VACATION FOR CHESTER AVENUE NORTH OF 13TM STREET (#AB01-024): Jeff Shea, Senior
Engineer, paraphrased that the right-of-way consists of a two-lane improved roadway with sidewalk
on the west side. 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 has been maintained as landscaping and the adjacent property owners
have used a portion as gravel shoulder parking. This vacation is also requested by Olympic College
to improve the property for redevelopment. A hearing date of January 24, 2001 was set by City
Council on December 27, 2000. Posting of hearing notices and mailing to the adjacent property
owners have been completed in accordance with State law and Bremerton Municipal Code.
Elizabeth Buell and Don Larson provided positive comments regarding the landscaping of Olympic
College, and asked the City to follow their example.
Mr. Farr proposed to waive the fee for this item also, if it would assist Olympic College in reducing the
debt service on the proposed parking lot. Mr. Jonietz replied that it definitely would, and thanked the
Council for the offer.
#3470 M/S/C/U (Farr/Arends) Move to adopt ordinance on first reading, vacating a portion of Chester
Avenue, located north of 13th Street; and added a waiver for the fee in the amount of $16,206.77.
TAPE #1749
'I1A - PUBLIC HEARING & RESOLUTION NO. 2796 TO SET PUBLIC HEARING DATE OF
FEBRUARY 21sT FOR RIGHT-OF-WAY STREET VACATION OF ALLEY BETWEEN 6TM & NAVAL
AVENUE (#AB01-025): Jeff Shea, Senior Engineer, reported that S.E. Grainger Development Group
has petitioned the City 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 intent of the vacation is 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.
Martin Peterson, of Grainger Development Group, summarized that the alley vacation would clear
the way for construction of a Sav-On store. He added that the Grainger Development Group is in the
process of purchasing the entire city block with the intent to redevelop that area.
Tom McDonald, Naval Avenue Business Owner, pointed out that the area between Naval and
Wycoff Avenues is becoming the business hub of the City because merchants have been involved in
the improvement process. He supported the street vacation and the plans of Grainger Development
Group to improve the City.
Mr. Esser asked if there were any plans or negotiations made to move the Washington State Liquor
Store located on Naval Avenue. Mr. Peterson responded that an agreement with the State was
reached and that agreement includes plans to move the store a block away to the south.
TAPES #1748 & #1749
City Council Reg. Mtg. Minutes
January 24, 2001
Page 5 of 6
#0311 M/S/C/U (Arends/Olsen) Move to pass Resolution No. 2796, setting Public Hearing date of
February 21, 2001 to propose the right-of-way vacation of the alley located between Naval and
Roosevelt Avenues, and between 6th & 7th Streets.
12A- PUBLIC HEARING AND APPEAL OF DETERMINATION OF NON-SIGNIFICANCE, NANCF
WESLON PLACE PLAN AMENDMENT (#AB01-026):
Council President Law stated that all Council members should give consideration as to whether
they have 1) a demonstrated bias or prejudice for or against any party to the proceedings; 2) a
director or indirect monetary interest in the outcome of the proceedings; 3) a prejudgment of the issue
prior to hearing the facts on the record; or 4) ex parte contact with any individual, excluding
administrative staff, with regard to an issue prior to the hearing. If any Council member should
answer in the affirmative, then the Council member should state the reason for their answer at this
time so that the Chair may inquire of the City Attorney as to whether a violation of the Appearance of
Fairness Doctrine or a Conflict of Interest exists. Each of the Council members admitted to having
previous conversations with Mrs. Miller on non-related issues, and Mr. Farr, Mr. Reed, and Mr. Esser
admitted to having previous contact with Mr. Nance. However, each of the Council members stated
that they could hear this issue tonight without prejudice. All Council members remained seated.
David St, Pierre addressed the issue of relevant testimony to be presented tonight, which must be
limited to the relevance of the DNA.
Clyde Stricklin of City Building & Planning Department, summarized that the City received an
application for a comprehensive plan amendment from Roger Nance and Victor Target. An
Environmental Checklist in the format required by Washington Administrative Code (WAC) as
adopted by the Bremerton Municipal Code (BMC) was reviewed by the City staff and a Determination
of Non-Significance (DNS)issued by the Director of the Bremerton Planning Department on 12/11/00
(see exhibits 2 and 3 of the Council packet). The Planning Department authorizes one open record
appeal to'the City Council of a Determination of Non-Significance, which is a Type II Administrative
Decision. An appeal was filed in a timely manner by Paul Scheyer and Helen Miller (see exhibit 4 of
the Council packet). 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.
An Appeal was 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 Stormwater review per City Storm Water Ordinance and Department of Ecology (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 Adjustments"; and
6) "Lack of compliance with Bremerton Municipal Code (BMC) 21.0-2.845 (b)".
TAPES #1748 & #1749
City Council Reg. Mtg. Minutes
January 24, 2001
Page 6 of 6
Appellants also indicate their belief 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".
Helen Miller read a statement for the record that itemized the following concerns 1) the appeal
process was problematic; 2) discrepancies besides proper notice have not been addressed; 3) the
business before the Council is confusing and incorrect in terms of what party is considered the
appellant; and 4) at issue is not the appeal of the DNS of the Comprehensive Plan Amendment but
rather what is at issue is the DNS of the Rezone.
Mr. St. Pierre indicated the DNS was the only order issued in December and that DNS can only be
applied to this particular appeal. He added that Mrs. Miller has the right to make her arguments if the
DNS is inappropriate or if the DNS were issued inappropriately.
Mr. Reed recommended that clarification of appeals be made on the application by requesting
appellants to list appeals or file separate applications for each appeal to avoid confusion.
Mr. Stricklin stated that there are additional opportunities for public appeal on the SEPA as well as
the DNS.
#1869 M/S/C/U (Reed/Olsen) Move that the appeal of the DNS issued by the Director of Bremerton
Planning Department (BPD) for Nance/Weslon Place Comprehensive Plan Amendments application
be denied and the attached Findings of Fact conclusions of law and order be adopted.
With no further business, meeting concluded at 8:20 P.M.
Prepared and Submitted by:
LORI SMITH, Legislative Assistant
Attest:
PAULA JOHNSTON, Deputy City Clerk
JOHN LAW, City Council President
City of Bremerton
JL/PJ/Is/cge
c: Normal Distribution
File
AGENDA BILL
BREMERTON CITY COUNCIL
I. SUBJECT: FOR AGENDA OF: FEBRUARY 13, 2001
ORIGINATING DEPT.: CITY COUNCIL
MINUTES OF MEETING-- JANUARY 31, 2003 ORIGINATOR: JOHN E. LAW, PRESIDENT
DATE SUBMITTED: FEBRUARY 5, 200~
-). CLEARANCES: (Comment on back if necessary) 3. EXHIBITS:
ENDORSEMENT [] INFORMATION [] APPROVED BY COUNCIL PRESIDENT FOR SUBMI"I-I-AL:
vlAYOR COUNCIL PRESIDEN~~.. .~.._
~. SUMMARY STATEMENT AND REQUIREMENT FOR COUNCIL ACTION:
RECOMMENDATION:
9. RESPONSIBLE OFFICIAL:
ENFORCEMENT OFFICIAL:
EXPIRATION DATE:
REVIEW DATE:
10. NOTICE OF ACTION
~ULLED, TABLED [] APPROVED ['] DISAPPROVED FI AMENDED, DATE: 3 B
2OUNCIL DIRECTIVE:
11. AGENDA BILL NO.' ~)/~ ~'~ '-~ ~
(OVER)
2. CLEARANCE COMMENTS:
4. SUMMARY STATEMENT (CONTINUED):
5. IMPACT OF NON-PASSAGE:
6. IMPACT ON STAFFING, BUDGETS, FACILITIES, EQUIPMENT OR OTHER RESOURCE-~:
7. RESEARCH SOURCES:
TAPE #1750 UNAPPROVED DRAFT
CITY COUNCIL MEETING MINUTES
January 31, 2001
The weekly meeting of the City Council of the City of Bremedon was called to order in the City
Council Chambers, 239 4th Street, Bremerton, Washington, Wednesday, January 31, 2001, at 5:30
P.M., with Council President John Law presiding. Council members present were Jim Reed, Conrad
Esser, Carol Arends, David Farr, Mike Shepherd, Ed Rollman, Cecil McConnell, and Wayne Olsen.
Also present were Deputy City Clerk Paula Johnston; Special Counsel Glenna Malanca; and
Legislative Assistant Lori Smith.
The meeting opened with the Pledge of Allegiance led by Council Member Cecil McConnell, followed
by the invocation given by Pastor Roger Hennigan of Apostolic Life Tabernacle.
President Law made the following announcements:
1) Council held a Pre-Council Session in the Council Conference Room to discuss general Council
business;
2) Item 9B under NEW BUSINESS will be moved to Item 10D on the Agenda tonight; and
3) Council will hold a Study Session immediately following the meeting tonight to discuss the
"Property and Liability Insurance Program" with Risk Manager Peggy Lesser.
CONSENT AGENDA
There were no Consent Agenda items scheduled for this week.
CLAIMS/CHECK REGISTERS
Vouchers audited and certified by the auditing officer as required by RCW 42.24.080, and those
expense reimbursement claims certified as required by RCW 42.24.090 have been recorded on a
listing that had been made available to the Council.
#0025 M/S/C (Esser/Reed) On January 31, 2001, the Council does approve for payment those,
vouchers included and further described as follows: Checks 248848, and 248854 through 248994 in
the amount of $382,980.77; and Retiree Payroll for the period ending January 31, 2001 for the
amount of $122,844.50.
Vote on motion: Olsen, Rollman, Shepherd, Farr, Arends, Esser, Reed, and Law
Abstained: McConnell
Motion carried: 8-Yes; 1-Abstention
COUNCIL MEMBER REPORTS
Wayne Olsen reported on the construction project on Lebo Boulevard.
Ed Rollman welcomed Retired Lieutenant Edward R. Murray and wife Carol and announced the
Smile Mobile will be in Bremerton at 1201 Park Avenue from February 20 through March 2, 2001
which will be providing dental care for families of limited income with children ages 13 or younger.
Information can be obtained by called 377-0053 extension 356.
Mike Shepherd announced that there would be a Smart Growth Conference on February 5-6, 2001
to address salmon recovery and watershed restoration. Michael Reitcuhl may be reached at (206)
553-4014 to make reservations.
David Fart & Carol Arends announced that there would be a combined District 6 & 7 meeting on
Tuesday, February 20, 2001 at 6:30 P.M. in the Board Room of the Bremerton School Administration
Building to discuss the Bremerton/Kitsap County Regional Government Center with Norm McLoughlin
and Roger Waid of the Kitsap County Coordinating Housing Authority.
TAPE #1749
City Council Reg. Mtg. Minutes
January 31, 2001
Page 2 of 6
John Law announced there would be a District 3 meeting on February 20, 2001.
MAYOR'S REPORT - There was no report this evening.
LEGISLATIVE REPORT - There was no report this evening.
PUBLIC RECOGNITION
Tracy Thompson with the "Leadership Kitsap Project Group" asked the City to participate in a project
she is working on to install a telescope at the Bremerton Transportation Center called the "Eye of
Bremerton".
Don Lar$on, President of the Kitsap Diving Association, again encouraged the City to develop a plan
to plant more trees in downtown Bremerton, and offered his services as well.
9A - ADDENDUM TO PROFESSIONAL SERVICES AGREEMENT FOR LABOR NEGOTIATION-~
(#AB01-027): Human Resources Manager Carol Conley, stated that the change to the contract
would include a contract extension for Mr. Howard Strickler to December 31, 2001, and increase
expenditures for labor negotiations by an additional $12,500.00 which would allow the City to continue
using the services of Howard Strickler as Chief Negotiator with the BPOG Sworn Officers, Teamsters
Bargaining Unit, and IAFF Contract Negotiations. Negotiations began in August 2000 and the parties
have agreed upon no formal contracts, and negotiations with these bargaining units continue.
Negotiations were ceased with BPOG mid-October 2000, and are going directly to mediation on
February 14 and 28 of this year. In addition, the IAFF contract expires December 31, 2001, and Mr.
Strickler's services will be needed during those negotiations that will begin in August 2001. Finally, a
budget adjustment of $10,000 will be required to increase the compensation in the agreement to a
total not to exceed $30,000 to provide funding for this addendum.
There were no comments from the public
#0540 M/S/C/U (Shepherd/Farr) Move to authorize the Mayor to execute the attached Addendum to
the Professional Services Agreement between the City and Strickler and Associates for Labor
Negotiations services provided to the City, by extending the Term of the Contract to December 31,
2001, to increase expenditures for providing these services an additional $12,500 for a revised total
contract amount of $30,000, and to authorize a budget adjustment in the amount of $10,000 to
provide funding for this addendum.
9C - HOME PROGRAM RECOMMENDATION (#AB01-029): Debbie Peavler-Stewart of the
Economic Development Department, announced that the City receives an annual allocation of HOME
funds from the Department of Housing and Urban Development (HUD) to expand the supply of safe,
sanitary, and affordable housing for Iow income persons. City Council is responsible to make the final
determination concerning the use of the funds. The Economic Development Department has
received an application form the Low Income Housing Institute (LIHI) requesting $70,000 to
determine the feasibility of purchasing the property at 704 Chester Avenue to develop affordable
housing.
There were no comments from the public.
#0675 M/S/C/U (Shepherd/Rollman) Move to allocate $70,000 from the HOME program to LIHI for
predevelopment costs for the property at 704 Chester Avenue.
TAPE #1749
City Council Reg. Mtg. Minutes
January 31, 2001
Page 3 of 6
9D - ACCEPTANCE BY CITY OF REAL PROPERTY FROM THE NAVY FOR CONVEYANCE TO
KITSAP TRANSIT FOR PROVISION OF PUBLIC TRANSPORTATION SERVICES (#AB01-030):
Special Counsel Glenna Malanca, reiterated that Dick Hayes of Kitsap Transit presented to the City
Council at its January 24, 2001 meeting multiple contracts between the City, Kitsap Transit, the Navy,
and Sinclair Landing Association, providing for the relation of certain Navy facilities, expansion of SR
304, improvements for the ferry terminal, and other amenities. The City is asked to sign 2
documents, an Agreement for Conveyance of Title and Assumption of Obligations, and a Purchase
and Sale Agreement. Kitsap Transit is the lead agency in this project and has assumed responsibility
for funding, as well as most liabilities to the project. Richard Hayes, Executive Director of Kitsap
Transit, mentioned that the issue of federal funding is currently being addressed.
There were no comments from the public.
#0775 M/S/C/U (Farr/Olsen) Move to approve the proposed Agreement for Conveyance of Title and
Assumption of Obligations, and proposed Purchase and Sale Agreement between the City and navy,
and authorize the Mayor to execute both documents.
10A- PUBLIC HEARING & ORDINANCE NO. 4752 (SECOND READING) FOR RIGHT-OF-WAY
STREET VACATION FOR ALLEY BETWEEN PLEASANT AVENUE AND HIGHLAND, NORTH OF
11TM STREET PLACE (#AB01-022): The first reading of ordinance was heard on January 24, 2001.
There were no comments from the public.
#0848 M/S/C (Reed/Rollman) Move to pass Ordinance No. 4752, vacating the north 35 feet of the
alley north of 11th Street Place between Pleasant Avenue and Highland Avenue, on second reading.
Voted in favor of Motion: Arends, Esser, Reed, Olsen, McConnell, Rollman, Shepherd, and Law
Abstained: Farr
Motion carried: 8-Yes; 1-Abstention
10B - PUBLIC HEARING & ORDINANCE NO. 4753 (SECOND READING) FOR RIGHT-OF-WAY
STREET VACATION FOR 15TM STREET BETWEEN BROADWAY & WARREN AVENUE (#AB01-
023): The first reading of ordinance was heard on January 24, 2001.
There were no comments from the public.
#0930 M/S/C/U (Shepherd/Olsen) Move to pass Ordinance No. 4753 on second reading, for right-of-
way street vacation for 15th Street between Broadway & Warren Avenue.
10C - PUBLIC HEARING & ORDINANCE NO. 4754 (SECOND READING) FOR RIGHT-OF-WAY
STREET VACATION FOR CHESTER AVENUE NORTH OF 13TM STREET (#AB01-024): First
reading of ordinance was heard on January 24, 2001.
There were no comments from the public.
#0970 M/S/C/U (Farr/Arends) Move to pass Ordinance no. 4754 on second reading, for right-of-way
street vacation for Chester Avenue, north of 13th Street.
TAPE #1749
City Council Reg. Mtg. Minutes
January 31, 2001
Page 4 of 6
10D - PUBLIC HEARING & ORDINANCE (FIRST READING) ADOPTING 1999 BREMERTON
WATER SYSTEM PLAN (#AB01-028): Water Resources Manager Kathleen Cahall summarized
that Washington Administrative Code (WAC) 246-290-100 requires each drinking water system to
prepare a Water System Plan every 6 years. This plan identifies present and future drinking water
needs and sets forth a means to meet those needs in a manner consistent with Federal, State, and
local laws. The plan meets these requirements and has been approved by the Washington State
Department of Health. This plan is intended to address water needs and increasing population
growth.
There were no comments from the public.
#1043 M/S/C/U (McConnell/Reed) Move to adopt the City of Bremerton Water System Plan and
authorize the Department of Public Works and Utilities to implement this plan subject to City
Administrative Policies and Procedures.
11A - RESOLUTION NO. 2797, SUPPORTING A PORT OF BREMERTON GRANT APPLICATION
FOR FIBER OPTIC INSTALLATION (#AB01-031): Mayor Lynn Horton said that the intent of the
resolution is to support and prioritize the application for the Port of Bremerton for Qwest Settlement
Telecommunications Project Assistance funding to provide broadband fiber optic telecommunications
services throughout the Port's industrial and airport properties. She indicated that setting up
infrastructure for such technology invites high tech companies to the area.
There were no comments from the public.
#1165 M/S/C/U (Arends/Farr) Move that Council pass Resolution No. 2797, supporting a Port of
Bremerton Grant Application for Fiber Optic Installation.
11B - RESOLUTION NO. 2798. SETTING A PUBLIC HEARING DATE OF FEBRUARY 21,2001
FOR VACATING APPROXIMATELY 210 FEET OF YANTIC AVENUE SOUTH OF 1sT STREET,
AND THE ALLEY LYING SOUTH OF 1sT STREET BETWEEN YANTIC AND HARTFORD
AVENUES (#AB01-032): Senior Engineer Jeff Shea provided a brief report, and then requested that
the City Council set a hearing date for this street vacation for February 21,2001. Also, the City has
initiated the vacation of approximately 210 feet of Yantic Avenue south of 1st Street and the alley lying
south of 1st Street, and between Yantic and Harford Avenues. These rights-of-ways have not been
developed, and the terrain consists of hilly, steep slopes that are not needed for public use. This is a
Class III right-of-way and compensation is not required.
There were no comments from the public.
#1232 M/S/C (Arends/Reed) Move to pass Resolution No. 2798 setting a hearing date of February
21, 2001, for the vacation of approximately 210 feet of Yantic Avenue south of 1st Street south of 1st
Street, and the alley lying south of 1st Street and between Yantic and Hartford Avenues.
Voted in favor of this Motion: McConnell, Rollman, Shepherd, Arends, Esser, Reed, Olsen, and Law
Abstained: Farr
Motion carried: 8-Yes; 1-Abstention
TAPE #1749
City Council Reg. Mtg. Minutes
January 31, 2001
Page 5 of 6
11C - RESOLUTION NO. 2799. SETTING A HEARING DATE OF FEBRUARY 21, 2001, FOR
VACATING THE SOUTHERLY 1.000 FEET OF FORREST STREET BETWEEN 1sT STREET AND
KITSAP WAY (#AB01-033): Senior Engineer Jeff Shea asked that City Council set a hearing date of
February 21, 2001, for the street vacation. The City has initiated the vacation of the southerly 1,000
feet of Forrest Street between 1st Street (vacated) and Kitsap Way. Forrest Street is approximately
1,600 feet in length. The vacation begins at the southerly right-of-way of Kitsap Way and has been
developed for approximately 600 feet. The remainder of the right-of-way is hilly with steep slopes that
are not needed for public use. This is a Class III right-of-way and compensation is not required.
There were no comments from the public.
#1299 M/S/C/U (Reed/Olsen) Move to pass Resolution No. 2799 setting a hearing date of February
21, 2001, for the vacation of the southerly 1,000 feet of Forrest Street between 1st Street (vacated)
and Kitsap Way.
11D - RESOLUTION NO. 2800, AMENDING THE MASTER PLAN FOR PENDERGAST REGIONAL
PARK FOR CONSTRUCTION OF INDOOR ATHLETIC/RECREATION FACILTIES (#AB01-034):
Assistant Parks & Recreation Director Jodi Wroblewski, summarized that at Council's direction, staff
has proceeded with the process for developing a land lease for construction of a privately financed
recreation facilities at Pendergast Regional Park. One step of that process requires a modification to
the existing Master Plan for the park, which was originally approved by Council on April 7, 1993. The
proposed modifications to the Master Plan call for an indoor soccer facility to be constructed in an
area previously designated as a future softball field, and for an outdoor batting cage facility to
relocated onto a site previously designated as an open turf area. Staff believes that the proposed
changes will not generate more traffic or create a higher demand for parking space than the uses
envisioned in the original plan. These concepts for changes received a favorable response during a
presentation to the .Pendergast Memorial Committee last spring. The proposed amendments to the
Pendergast Regional Park's Master Plan were discussed and endorsed by the Bremerton Parks and
Recreation Commission at its meeting on January 23, 2001.
There were no comments from the public.
#1435 M/S/C/U (McConnell/Reed) Move to repeal Resolution No. 2428, and to approve Resolution
No. 2800, amending the Master Plan for Pendergast Regional Park to allow for future development of
indoor soccer and outdoor batting cage facilities to the extent permitted under the City's Zoning
Ordinances and other applicable laws.
11 E - RESOLUTION NO. 2801, REGARDING THE SECOND TACOMA NARROWS BRIDGE
(AB01-035): Mayor Lynn Horton paraphrased that the resolution urges the Washington State
Legislature to take the necessary steps to build the second Tacoma Narrows Bridge, including
establishing the appropriate legal and financial structures.
Don Larson commented on the heavy volume of traffic that he has witnessed on the bridge.
Mr. McConnell commented that he is opposed to the process by which the legislature has followed to
establish a second bridge, and that he is not opposed to the actual construction of a much-needed
second bridge. He did not support the resolution.
Mr. Farr, Mr. Shepherd, and Mr. Rollman provided comments in support of the resolution.
15
TAPE #1749
City Council Reg. Mtg. Minutes
January 31, 2001
Page 6 of 6
Mr. Rollman also mentioned that he was opposed to the concept of tolls, but pointed out that
improving the bridge will assist in the revitalization process by making this area more accessible.
Mr. Olsen pointed out that this issue takes into consideration the future of transportation in the long
term. Mr. Reed stated that a remedy is needed to improve transportation across the bridge.
Mr. Law agreed that the bridge improvements would also improve the economy. Mrs. Arends
reiterated that the second bridge is needed, and that is the message that the Council wishes to send
to the Legislature.
Mayor Horton added that adding tolls may become more common in the future, and without the toll,
the bridge would not be built on the Tacoma Narrows but the fees must be equitable throughout the
state.
#2015 M/S/C (Farr/Arends) Move that Council, by Resolution No. 2801, urge the Washington State
Legislature to take the necessary steps to build the second Tacoma Narrows Bridge, including
establishing the appropriate legal and financial structures.
Voted in favor of this Motion: Farr, Arends, Esser, Reed, OIsen, Rollman, Shepherd, and Law
Voted opposed to this Motion: McConnell
Motion carried: 8-Yes; l-Opposed
With no further business, meeting concluded at 6:37 P.M. Council adjourned to the Conference room
for a 30-Minute Study Session to discuss the "Property & Liability Insurance Program".
Prepared and Submitted by:
LORI SMITH, Legislative Assistant
Attest:
PAULA JOHNSTON, Deputy City Clerk
JOHN LAW, City Council President
City of Bremerton
JL/PJ/Is/cge
c: Normal Distribution
File
AGENDA BILL
BREMERTON CITY COUNCIL
I. SUBJECT: FOR AGENDA OF: FEBRUARY 13, 2001
ORIGINATING DEPT.: CITY COUNCIL
MINUTES OF MEETING-- FEBRUARY 7, 2001 ORIGINATOR: JOHN E. LAW, PRESIDENT
DATE SUBMITTED: FEBRUARY 8, 2001
.). CLEARANCES: (Comment on back if necessary) 3. EXHIBITS:
=NDORSEMENT ri INFORMATION l-I APPROVED BY COUNCIL PRESIDENT FOR SUBMITTAL:
vlAYOR COUNCIL PRESIDEN~~ ¥ ~
SUMMARY STATEMENT AND REQUIREMENT FOR COUNCIL ACTION:
RECOMMENDATION:
9. RESPONSIBLE OFFICIAL:
ENFORCEMENT OFFICIAL:
EXPIRATION DATE:
REVIEW DATE:
10. NOTICE OF ACTION
PULLED ['1 TABLED ['1 APPROVED FI DISAPPROVED [] AMENDED [] DATE:
~OUNCIL DIRECTIVE:
11. AGENDA BILL NO.:
(OVER)
t7
2. CLEARANCE COMMENTS:
4. SUMMARY STATEMENT (CONTINUED):
5. IMPACT OF NON-PASSAGE:
6. IMPACT ON STAFFING, BUDGETS, FACILITIES, EQUIPMENT OR OTHER RESOURCES:
7. RESEARCH SOURCES:
TAPE #1751 UNAPPROVED DRAFT
CITY COUNCIL MEETING MINUTES
February 7, 2001
The weekly meeting of the City Council of the City of Bremerton was called to order in the City
Council Chambers, 239 4th Street, Bremerton, Washington, Wednesday, February 7, 2001, at 5:30
P.M., with Council President John Law presiding. Council members present were Jim Reed, Conrad
Esser, Carol Arends, David Fart, Mike Shepherd, Ed Rollman, Cecil McConnell, and Wayne OIsen.
Aisc present were Deputy City Clerk Paula Johnston; Special Counsel Glenna Malanca; and
Legislative Assistant Lori Smith.
The meeting opened with the Pledge of Allegiance led by Council Member Cecil McConnell, followed
by the invocation given by Council Member Carol Arends.
President Law made the following announcements:
1) A Pre-Council Session was held in the Council Conference Room to discuss general Council
business;
2) Next week, the Council meeting would be held one day earlier than usual, on Tuesday, February
13, due to an AWC Conference on Wednesday, February 14; and
3) Council will hold a Monthly Study Session immediately following the meeting tonight to discuss the
"Proposed Merger of Fire Department' and a "Budget Adjustment for Special Counsel'.
CONSENT AGENDA
A. Minutes of Meeting - January 17, 2001 (#AB01-020)
#0015 M/S/C (Arends/) Move to approve Consent Agenda as presented.
Voted in favor of motion: Rollman, Shepherd, Farr, Arends, Esser, Reed, and Law
Abstained: McConnell
Motion carried: 7-Yes; and 1-Abstention
Wayne Olsen stepped out of the meeting, and was not available for the following two votes:
CLAIMS/CHECK REGISTERS
Vouchers audited and certified by the auditing officer as required by RCW 42.24.080, and those
expense reimbursement claims certified as required by RCW 42.24.090 have been recorded on a
listing that had been made available to the Council.
#0042 M/S/C/U (Esser/Arends) On February 7, 2001, the Council does approve for payment those
vouchers included and further described as follows: Checks 248999 through 249014 in the amount of
$61,210.28; and Regular Payroll for the period ending 1/31/01 in the amount of $991,588.56.
COUNCIL MEMBER REPORTS
Ed Rollman announced that a District 4 meeting has been tentatively scheduled for the week of
March 12th to discuss the proposed Bremerton/Kitsap County Regional Government Center.
Mike Shepherd encouraged the public to attend local productions such as "/Love You, Your Perfect,
Now Change" showing this Saturday at the Admiral Theater, and to support local businesses.
David Fart enjoyed his first attendance at the Bremerton Symphony last weekend; and announced
that there would be a combined District 6 & 7 meeting on Tuesday, February 20, 2001 at 6:30 P.M. in
the boardroom of the Bremerton School Administration Building. Citizens will have an opportunity to
discuss the proposed Bremerton/Kitsap County Regional Government Center with guest speakers
Norm McLoughlin and Roger Waid of the Kitsap County Coordinating Housing Authority.
TAPE #1751
City Council Reg. Mtg. Minutes
February 7, 2001
Page 2 of 3
Wayne Olsen arrived to the meeting at approximately 5:38 P.M.
Carol Arends reiterated the information regarding the upcoming District 6 & 7 meeting; in addition to
reporting on her attendance at the First Friday Art Walk, and encouraged others to attend.
Conrad Esser & Jim Reed invited citizens to attend the combined District 8 & 9 meeting on
Thursday, March 8, 2001 beginning at 6:30 P.M. at the Oyster Bay Public Works Conference Room
located at 100 Oyster Bay Avenue to discuss "Funding Sources for City Road Repair", as well as a
discussion on the "Possible Elimination of the B&O Tax".
Wayne Olsen reported that City crews were making repairs to a section of failed roadway west of the
construction project on Lebo Blvd., where three panels would be replaced to stabilize the grade. He
cautioned that drivers could travel over the panels, but that one lane would be closed at a time.
John Law attended the Puget Sound Naval Base Association dinner last evening, where Mayor
Horton and Council member Mike Shepherd were recognized for their diligence and support
representing the City and the Naval Base Association outside of the area. He also announced the
next District 3 meeting would be held on Tuesday, February 20, 2001, 7:00 P.M. at the Senior Center.
The Beat Officer and the Fire Department Unit from the Eastside would be in attendance.
MAYOR'S REPORT
Attended several recent events including the First-Friday Art Walk and Reception last week; as
well as the Puget Sound Naval Bases Association dinner last evening;
· The "Smile Mobile", a fully equipped mobile dental clinic, would be coming to Bremerton February
20th through March 2® at the Community Resource Center in Bremerton between the hours of
8:00 A.M. to 1:00 P.M. (377-0053, ext. 353) to provide dental care to lower-income children under
the age of 13 years;
· As part of the restoration of sediments in Sinclair Inlet at Jackson Park, the Navy was looking for
citizens to discuss clean-up issues at informal meetings of the Restoration Advisory Board.
Those interested may call Dianne Manning at 476-7111;
· On March 2® from 8:00 A.M. to 3:00 P.M. a workshop on building developmental assets for
healthy children would be held at the Jackson Park Community Center; and
Sunday, February 11-17, 2001 was proclaimed as "National Child Passenger Safety Week",
which was accepted by Shirley Wise, Traffic Safety Coordinator. She then invited everyone to
attend the Kitsap "SAFE KIDS" Coalition Safety Fair and Child Passenger Safety Event on
Sunday, February 11, 2001 at Today Chevrolet located at West Hills Auto Center.
LEGISLATIVE REPORT - There was no report this evening.
PUBLIC RECOGNITION
Don Larson handed out several publications with suggested ideas for improving City waterfronts;
and proposed that the City create a Protective Under Habitat near Evergreen Park. He also provided
information on the history of why Bremerton has so little trees and limited access to waterways, and
different way to correct the problem. Elizabeth Buell encouraged the City to consider his ideas.
9A - AMENDMENT NO. 1 TO THE INTERLOCAL AGREEMENT BETWEEN THE CITY OF
BREMERTON AND KITSAP COUNTY FOR THE SR-304 TRANSPORTATION IMPROVEMENT
PROJECT (#AB01-036): Project Manager Lynn Price stated that an Interlocal Agreement was
entered into on June 16, 1997, between the City of Bremerton and Kitsap County regarding the
TAPE #1751
City Council Reg. Mtg. Minutes
February 7, 2001
Page 3 of 3
design and right-of-way acquisition for the SR 304 Transportation Improvement Project. Kitsap
County has committed to provide $500,000 as their share for the SR 304 Project. Kitsap County has
expended $156,000 to date for their share of those costs. Since expenditures of funds on specific
grants has not occurred as anticipated in the Interlocal Agreement and since the design, right-of-way
and construction activities will soon occur on properties and right-of-way within the jurisdiction of the
County it is necessary to amend the Interlocal Agreement to reflect current responsibilities.
There were no comments from the public.
#0920 M/S/C/U (Farr/Arends) Move that the Mayor be authorized and directed to execute the
attached Amendment No. 1 to the Interlocal Agreement with Kitsap County for the SR-304
'Transportation Improvement Project.
10A - PUBLIC HEARING & ORDINANCE NO. 4755 (SECOND READING) ADOPTING 1999
BREMERTON WATER SYSTEM PLAN (#AB01-028): First reading of this ordinance was heard at
the January 31, 2001 meeting. Kathleen Cahall, Water Resources Manager, was available to
answer any questions.
There were no comments from the public.
#0960 M/S/C/U (Reed/McConnell) Move to adopt the City of Bremerton Water System Plan and
authorize the Department of Public Works and Utilities to implement this plan subject to City
Administrative Policies and Procedures.
With no further business, meeting concluded at 6:05 P.M. Council then adjourned to the Conference
Room for the Monthly Study Session to discuss 1) the "Proposed Merger of the Fire Department'
and 2) "Budget Adjustment for Special Counsel'
Prepared and Submitted by:
LORI SMITH, Legislative Assistant
Attest:
PAULA JOHNSTON, Deputy City Clerk
JOHN LAW, City Council President
City of Bremerton
JL/PJ/Is/cge
c: Normal Distribution
File
AGENDA BILL
BREMERTON CITY COUNCIL
1. SUBJECT: Budget Adjustment to Equipment FOR AGENDA OF: 02-13-01
Rental Fund 510. ORIGINATING DEPT: PWO Street Division
ORIGINATOR: Robert E. Tulp
DATE SUBMITTED: 02-02-01
2. CLEARAINCES: (comment on back '/~n~c~-s~";tX,,'~
3.
EXHIB
ITS
Directo~ Utilities t/" ~ ~, 1) Budget adjustment 2001 #2
Manager, Public Works Operations
City Attorney .
City Treasurer ~ _
Council Budget & Fiscal Committee
Operations Committee
ENDORSE~ME~. X /~INF~ON APPROVED BY COUNCIIs'P'~--~-flSIDENT F~R SUBMITTAL:..
MAYOR x~~ . COUNCIL PRESIDEN~
4. SUMI~atRY STATEMENT AND REQUIREMENT FOR COIfflqCIL ACTION:
Staff recommends budget adjustment is necessary to provide funding to replace computerized sign plotter
for the Traffic Maintenance Division.
8. RECOMMENDATION: 1) Approve budget adjustment No. 2001 #2 in Fund 510 for $10,000.00
9. RESPONSIBLE OFFICIAL: Director, Public Works/Utilities
ENFORCEMENT OFFICIAL: Manager, Public Works Operations
EXPIRATION DATE:
REVIEW DATE:
10. NOTICE OF ACTION
PULLED TABLED APPROVED__ DISAPPROVED
COUNCIL DIRECTIVE
II. AGENDA BILL NO:
2. CLEARANCE COMMENTS:
New Technology will give us the ability to do more. We do not have to purchase additional laminants and
paper. The new equipment uses existing materials we already have in stock. Thus, no waste.
4. SUMMARY STATEMENT (CONT.):
5. IMPACT ON NON-PASSAGE:
We will not have the ability to' make any signs in-house and we will have to purchase signs from vendors.
Special signs will create scheduling and budget problems.
6. IMPACT ON STAFFING~ BUDGETS, FACILITIES~ EQUIPMENT OR OTHER RESOURCES:
none
7. RESEARCH SOURCES
See Attached.
CITY OF BREMERTON
BUDGET ADJUSTMENT REQUEST
Requesting Department: EQUIPMENT RENTAL Adjustment Number: 2001 #2
IAppr oval Authority Required:
~-'~Treasurer ~--] Mayor Fiscal & Budget r~council
SOURCE OF FUNDS: USE OF FUNDS:
Description Amount Description Amount
DECREASE: INCREASE:
Ending Cash 10,000 Capital 10,000
NARRATIVE:
This adjustment will provide expenditure authority for replacement of a graphic design system in the sign shop of
the Street Department.
Department Head Signature Date Director Sic Date'
Treasurer Comments:
~ Recommended
Treasurer's Signature ~ D
Mayor Comments:
~ Recommended ~ Not Recommended
F--] Approved r-~ Denied
Mayor's Signature D~Jte
Fiscal & Budget Committee Comments:
Approved F-~ Denied
Fiscal & Budget Committee Signature Date
AGENDA BILL
BREMERTON CITY COUNCIL
1. SUBJECT: Professional Services FOR AGENDA OF: February 13, 2001
Agreement with Ryan, Sells, ORIGINATING DEFT: Risk Managemen~
Uptegraft, Inc. ORIGINATOR: Peggy Lesser/~
DATE SUBMITTED: February 2, 2001
2. CLEARANCES: (comment on back 3. EXHIBITS:
if necessary)
Police Chief
Admin Services
Fiscal & Budget
Oper_at ion.s
ENDORSEMENT~ INFORMl%.TION__ APPROVED BY ..
4. SUMMARY STATEMENT AND REQUIREMENT FOR COUNCIL KCTION:
The City needs to appoint defense counsel to represent Bremerton in
Linde Lee Kreifels v. City of Bremerton. Defense costs are unknown at this
time but cannot exceed $20,000 under the terms of this contract.
8. RECOMMENDATION:
Motion to approve the professional services agreement with Ryan,
Sells, Uptegraft, Inc.
9. RESPONSIBLE OFFICIAL: Executive
ENFORCEMENT OFFICIAL: Executive
EXPIRATION DATE: 12/31/2002
REVIEW DATE: N/A
10. NOTICE OF ACTION_~ Dm
PULLED TABLED APPROVED DISAPPROV~~~NDED
COUNCIL DIRECTIVE: DATE:
2. CLEARANCE COMMENTS (cont.):
4. SUMMARY STATEMENT (cont.):
5. IMPACT ON NON-PASSAGE:
Special Counsel Glenna Malanca would remain attorney of record.
6. IMPACT ON STAFFING, BUDGETS, FACILITIES, EQUIPMENT OR OTHER RESOURCES
The use of outside counsel will allow legal staff to focus on internal
requirements. Costs will be paid from the risk management fund.
7. RESEARCH SOURCES:
PROFESSIONAL SERVICES AGREEMENT
RYAN, SELLS, UPTEGRAFT, INC.
The City of Bremerton ("City") and Ryan, Sells, Uptegraft, Inc. ("Retained Counsel"),
referred to collectively as the "Parties", enter into the following Agreement for professional
services:
I. Scope: The Retained Counsel will perform necessary legal services and represent the
City of Bremerton in Case Number 00 2 01832 2, Linda Lee Kreifels v. City of Bremerton, filed in
Kitsap County Superior Court. If appeal is taken from any judgment in this matter, this contract
shall not apply to that appeal. A subsequent contract may be negotiated for appellate work.
II. Term: This Agreement commences on February 15, 2001 and terminates on
December 31, 2002.
III. Compensation: In consideration of the services provided pursuant to this Agreement,
The City shall pay Retained Counsel in a total amount not to exceed Twenty Thousand and
No/100 Dollars ($20,000.00). Payment will be made based on the houdy rate of $125.00 for
attorney services provided by retained counsel, plus reasonable costs and expenses including
but not limited to copy fees, postage, phone expenses, court reporter fees, witness fees and
mileage for out-of-county travel. Payment will be made within thirty (30) days of billing.
IV. Hold Harmless: Retained Counsel shall be solely responsible for the acts and failures
to act of its personnel which adse in any way out of performance of this Agreement. Retained
Counsel agrees to defend, indemnify, and hold harmless the City and its officials and
employees from and against all liability, loss, damages, and expenses, including costs and
attorneys' fees, resulting from actions, claims, and lawsuits arising or alleged to have arisen, in
whole or in part, out of or in consequence of the acts or failures to act of Retained Counsel, its
employees, its subcontractors, its agents, or its assigns in the performance of this Agreement.
The City and Retained Counsel have specifically negotiated Retained Counsel's waiver of its
immunity under Title 51 RCW, which is hereby waived for purposes of Retained Counsel's
indemnification and hold harmless of the City, including the duty to defend. This provision shall
be inapplicable to the extent such action, claim, or lawsuit is judicially found to arise solely from
the acts or failures to act of the City.
V. General Conditions:
A. Reports and Information: When requested by the Mayor or a Bremerton Assistant
Attorney, Retained Counsel shall furnish periodic reports and documents on matters covered by
this Agreement. The reports and documents shall be furnished in the time and form reasonably
requested.
B. Entire Agreement: This Agreement constitutes the entire agreement between the
Parties, and the Parties acknowledge that there are no other agreements, wdtten or oral, that
have not been set forth in the text of this Agreement.
RYAN SELLS UPTEGRAFT INC
2/5/01 - Page 1
C. Severabilit¥: Should any part of this Agreement be found void, the balance of the
Agreement shall remain in full force and effect.
D. Modification: This Agreement may only be modified by written instrument signed by
both Parties.
E. Notices: Notices shall be in writing and delivered to the following addresses:
Lynn Horton David Horton
Mayor Ryan, Sells, Uptegraft, Inc.
239 Fourth Street 9657 Levin Road NW, Suite 240
Bremerton, WA 98337 Silverdale, WA 98383
F. Waiver: Failure to enforce any provision of this Agreement shall not be deemed a
waiver of that provision. Waiver of any right or power arising out of this Agreement shall not be
deemed waiver of any other right or power.
G. Compliance with Laws: Retained Counsel shall comply with all applicable Federal,
State, and local laws in performing its obligations under this Agreement.
H. Choice of Law and Venue: This Agreement shall be interpreted according to the
laws of the State of Washington. Any judicial action to resolve disputes arising out of this
Agreement shall be brought in Kitsap County Superior Court.
I. Attorneys' Fees: The substantially prevailing Party in any litigation arising out of this
Agreement shall be entitled to its reasonable attorneys' fees and court costs.
VI. Nondiscrimination: Retained Counsel shall not discriminate in employment or services
to the public on the basis of race, color national origin, sex, religion, age, marital status, or
disability, except for employment actions based on bona fide occupational qualification.
VII. Termination: This Agreement may be terminated, at will, by either Party upon thirty
(30) days notice to the other Party. This Agreement may be immediately terminated for cause
by a Party if the other Party substantially fails to perform through no fault of the terminating
Party, and the non-performing Party does not commence correction of the failure of
performance within five (5) days of the terminating Party's sending notice to the non-performing
Party. Upon termination the City will be entitled to reports showing the status of all items listed
in the Scope of Work current through the termination date.
CITY OF BREMERTON RYAN, SELLS, UPTEGRAFT, INC.
By: LYNN S. HORTON, Mayor By:
RYAN SELLS UPTEGRAFT INC
2/5/01 - Page 2
AGENDA BILL
BREMERTON CITY COUNCIL
1. SUBJECT: Extend contract for FOR AGENDA: February 13, 2001
City Council representation on issues ORIGINATING DEPT: City Council
relating to rejection of City Attorney's ORIGINATOR: John Law, President
resignation and acceptance of withdrawal. DATE SUBMITTED: January 9,2001
2. CLEARANCES: (Cornrri~ent on back if necessary) 3. EXHIBITS:
&~'~I~ALANC¢', Special Counsel- - Proposed Professional Services Agreement
extension with the lawfirm of LANE POWELL
~~ ~e-~c~~/ SPEARS AND LUBERSKY
~~NS COMMITTEE
FISCAL & BUDGET COMMITTEE
ENDORSEMENT [-~ INFORMATION ~ APPROVED FOR SUBMITTA!~
OUN nPp s D (
4. SUMMARY STATEMENT AND REQUIREMENT FOR COUNCIL ACTION:
The City Council retained outside legal counsel to represent the Council
to support the Council's rejection of the CityAttorney's resignation and acceptance of the
City Attorney's withdrawal of her resignation. The contract expired on December 31, 2000, and
now needs to be extended to June 30, 2001 if representation of the Council is to be maintained.
5. RECOMMENDATION:
Move to extend the Professional Services Agreement with LANE POWELL SPEARS LUBERSKY
to June 30, 2001.
6. RESPONSIBLE OFFICIAL:
ENFORCEMENT OFFICIAL:
EXPIRATION DATE:
REVIEW DATE:
7. NOTICE OF ACTION:
PULLED [--] TABLED [] APPROVED [--] DISAPPROVED [] AMEN~III~I~'E:
COUNCIL DIRECTIVE:
8. AGENDA BILL NO.:
9. IMPACT OF NON-PASSAGE:
The City Council will not have necessary independent legal counsel to assert the City Council's authority to
reject the City Attorney's resignation and accept the withdrawal of her resignation.
10. IMPACT ON STAFFING, BUDGETS. FACILITIES, EQUIPMENT OR OTHER RESOURCES:
None
11. RESEARCH SOURCES:
AMENDMENT OF PROFESSIONAL SERVICES AGREEMENT
The City of Bremerton("City") and Lane Powell Spears Lubersky ( "Retained
Counsel") entered into an Agreement for the provision of legal services commencing on
the 21~t day of November 2000 through the 31~t day of December 2000. The legal
matters involving the Bremerton City Council and Mayor Lynn S. Horton have not been
resolved, and litigation has been commenced.
Section II. of the parties Professional Services Agreement is hereby amended to
extend the term of the parties Agreement through June 30,2001. The rest and remainder
of the Agreemem remains in full force and effect.
CITY OF BREMERTON LANE POWELL SPEARS LUBERSKY
JOHN LAW, Council Presidem JAMES ROBART, Partner
THE AGENDA BILL
FOR
ITEM 9D WILL BE
AVAILABLE ON
MONDAY,
FEBRUARY 12,
2001
AGENDA BILL
BREMERTON CITY COUNCIL
February 1,~,,2001
1. SUBJECT: ORDINANCE NO. FOR AGENDA OF: February 21,2001
ORIGINATING DEPT: Treasurer
Authorizing the Issue of General Obligation Bonds to ORIGINATOR: Rich Har~
Finance the Clubhouse at Gold Mountain Golf Complex DATE SUBMITTED: January 5, 2001
and Accepting the Purchase Offer of Bank of America.
2. CLEARANCES: Comment of back if necessary) 3. EXHIBITS:
Dir. Parks and Rec. Bond Ordinance
Dir. Admin Serve-, Official Statement
Fiscal & Budget ~ Purchase Offer (At Second Reading)
Operations
ENDORSEMENTS ~ INFORMATION APPROVED BY COUNCIL PRESI_J~_NT FOR SUBMITTAL:
MAYOR ~ ~/. ~, COUNCIL PRESIDEN
4. SUMMARY STATEMENT AND REQUIREMENT FOR COUNCIL ACT10~:
This ordinance will authorize the financing necessary to design, construct and furnish the new clubhouse at Gold
Mountain Golf Course. This project has been reviewed by Council in the context of the 2000 - 2005 rIP, the 2001 -
2002 Budget as well as the awarding of the contracts for clubhouse design and construction. The bond issue
proposed is a 20 year, Limited Tax General Obligation with level debt service. While the debt will be a general
obligation of the City, it is expected that repayment will be made from the revenues of the Golf Course.
8. RECOMMENDATION:
Move to approve on first reading the ordinance authorizing the bond issue for the clubhouse at Gold Mountain.
Move to pass on second reading Ordinance No. authorizing the bond issue for the clubhouse at Gold Mountain
and to accept the purchase offer of Bank of America.
9. RESPONSIBLE OFFICIAL: Treasurer
ENFORCEMENT OFFICIAL: Mayor
EXPIRATION DATE: Dec. 1,2020
REVIEW DATE: N/A
10. NOTICE OF ACTION
A
11. AGENDA BILL NO: 0t -- (~q4
2. CLEARANCE COMMENTS:
5. IMPACT ON NON-PASSAGE:
The City will not have the funding necessary to pay for the Clubhouse at Gold Mountain.
6. IMPACT ON STAFFING~ BUDGETS~ FACILITIES~ EQUIPMENT OR OTHER RESOURCES:
This project and financing are included in the 2001 - 2002 Budget,
7. RESEARCH SOURCES:
Golf course operating history and fee analysis. Bank of Amedca. City's bond counsel.
2NDDRAFT 2/7/01
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CITY OF BREMERTON, WASHINGTON
ORDINANCE NO.
AN ORDINANCE of the City of Bremerton Washington relating
to the incurrence of indebtedn.ess; providing for the sale and
issuance of $3,000,000 principal mount limited tax general
obligation bonds, 2001, to pay part of the costs of constructing and
equipping a new clubhouse facility and related facilities at the
City's Gold Mountain Golf Complex; providing for the date,
denominations, form, terms, registration privileges, maturity,
interest rates and covenants of the bonds; establishing a debt
service account for the bonds; and providing for the sale and
delivery of such bonds to Banc of America Securities LLC, Seattle,
Washington
WHEREAS, the City of Bremerton (the "City") currently owns and operates the
City's Gold Mountain Golf Complex (the "Golf Complex"), which contains two public
golf courses; and
WHEREAS, the current clubhouse facility at the Golf Complex is an outdated
facility which is inadequate to meet the needs of the golfers and other users of the Golf
Complex; and
WHEREAS, the City Council has previously approved the design, construction
and equipping of a new clubhouse and other related facilities at the Golf COmplex (the
"Project"); and
WHEREAS, pursuant to chapter 39.53 RCW, the City is authorized to sell and
issue, without an election, limited tax general obligation bonds of the City to finance all
or part of the costs of such Project; and
WHEREAS, the incurrence of such indebtedness by the City will not cause the
total indebtedness of the City to be incurred without the assent of the voters of the City to
exceed the limitations set forth in Chapter 39.36 RCW; and
WHEREAS, the City deems it necessary and advisable that $3,100,000 in
principal amount of Bonds now be sold and issued to provide funds for the Project; and
WHEREAS, Banc of America Securities LLC has offered, by way of the
Purchase Agreement, to purchase such limited tax general obligation bonds upon. the
terms and conditions hereinafter set forth; NOW, THEREFORE,
THE CITY OF BREMERTON DOES ORDAIN AS FOLLOWS:
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Section 1. Definitions. Unless the context otherwise requires, the terms defined
in this section, for all purposes of this Ordinance (including the recitals hereto) and of any
ordinance supplemental hereto, shall have the meanings herein specified; words
importing the singular number include the plural number and vice versa:
"Beneficial Owner" means, with respect to any Bond, the Person named on the
records of the Custodian as having the right, without a physical certificate evidencing
such right, to transfer, to hypothecate and to receive the payment of the principal of,
premium, if any, and interest on such Bond as the same becomes due and payable.
"Bond Account" means the 2001 Limited Tax General Obligation Bond Account
in the City's Gold Mountain Golf Course Fund created by this Ordinance for the purpose
of paying and securing the principal of and interest on the Bonds.
"Bonds" means the City of Bremerton, Washington, Limited Tax General
Obligation Bonds, 2001, dated March 1, 2001, in an original aggregate principal amount
of $3,100,000, the sale and issuance of which are authorized by this Ordinance.
"Bond Register" means the registration books on which are maintained the names
and addresses of the owners or nominees of the owners of the Bonds.
"Book-Entry Termination Date" means the fifth business day following the date
of receipt by the Registrar of the City's request to terminate the book-entry system of
registering the beneficial ownership of the Bonds.
"City" means the City of Bremerton, Washington, a first class city, organized and
existing under State law.
"City Council" means the City Council of the City.
"Closing" means the date and time when the Bonds are delivered to the Purchaser
in exchange for payment in full therefor.
"Code" means the Internal Revenue Code of 1986, as heretofore or hereafter
amended, together with all applicable rulings and regulations heretofore or hereafter
promulgated thereunder.
"Custodian" means (a) The Depository Trust Company, New York, New York, or
(b) any successor thereto engaged by the City to operate a book-entry system for
recording, through electronic or manual means, the beneficial ownership of the Bonds, in
which system no physical certificates are issued to the Beneficial Owners of the Bonds,
but in which a limited number of physical certificates are issued to and registered in the
name of the Custodian or its nominee, and delivered to the Custodian; provided, that such
book-entry system operated by the Custodian may include the use of subsystems of
recording the beneficial ownership of Bonds which are operated by parties other than the
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Custodian and the use of a nominee for the Custodian; and the term "Custodian," as used
herein, includes any party operating any such subsystem.
"Depositories" means the following registered securities depositories: (a) The
Depository Trust Company, 711 Stewart Avenue, Garden City, New York 11530; (b)
Midwest Securities Trust Company, Capital Structures-Call Notification, 440 South
LaSalle Street, Chicago, Illinois 60605; and (C) Philadelphia Depository Trust Company,
Reorganization Division, 1900 Market Street, Philadelphia, Pennsylvania 19103,
Attention: Bond Department.
"Government Obligations" means "government obligations," as defined in
Chapter 39.53 RCW, as now in existence or hereat~er amended.
'~Letter of Representations" means the Blanket Issuer Letter of Representations,
dated November 19, 1997, between the City and the Custodian pertaining to the payment
of the Bonds and the "book-entry" system for evidencing the beneficial ownership of the
Bonds prior to the Book-Entry Termination Date.
"MSRB" means the Municipal Securities Rulemaking Board.
"NRMSIR" means a nationally recognized municipal securities information
repository designated by the SEC.
"Ordinance" means this Ordinance No. __ of the City.
"Owner" means the person named as the registered owner of a Bond on the Bond
Register.
"Project" means the design, construction and equipping of a new clubhouse and
related facilities, including, but not limited to, landscaping and parking.
''Preliminary Official Statement" means the Preliminary Official Statement
pertaining to the Bonds, dated February 13, 2001.
''Purchase Agreement" means the Bond Purchase Agreement for the Bonds by
and between the City and the Purchaser, which written Purchase Agreement is on file
with the City Clerk and is incorporated herein by this reference.
"Purchaser" means Bane of America Securities LLC.
"RCW" means the Revised Code of Washington, as amended.
"Registrar" means either of the fiscal agencies of the State in Seattle, Washington
(as of the date of Closing, Wells Fargo Bank, National Association), and New York, New
York (as of the date of Closing, The Bank of New York), which Fiscal Agencies are
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appointed from time to tim~ by the State Finance Committee pursuam to chapter 43.80
RCW; and "Fiscal Agencies" means both such fiscal agencies.
"Rule" means SEC Rule 15c2-12.
"SEC" means the United States Securities and Exchange Commission.
"SID" means a state information depository.
"State" means the State of Washington.
Section 2. Purpose and Description of Bonds. The City authorizes the sale and
issuance of its "Limited Tax General Obligation Bonds, 2001" for the purpose of paying
part of the costs of the Project and to pay certain "incidental costs and costs related to the
sale and issuance" (as defined in RCW 39.46.070) of the Bonds.
The Bonds shall be in the aggregate principal amount of $3,100,000; shall be
dated March 1,2001; shall be issued in fully registered form as to both principal and
interest; shall be in the denomination of $5,000 each or any integral multiple thereof
within a single maturity, shall be numbered separately in such manner and with any
additional designation as the Registrar deems necessary for purposes of identification;
and; shall bear interest at the rates; and shall mature on the dates and in the principal
amounts, all as set forth below:
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Maturity Dates ~:
(December 1) Principal Amounts Interest Rates
2001
2002
2003
2004
2005
2006
2007
2008
2009
2010
2011
2012
2013
2014
2015
2016
2017
2018
2019
2020
Bonds shall bear interest (computed on the basis of a 360-day year of twelve
months) from their date or from the most recent interest payment date to which
been paid or duly provided for, whichever is later, payable on June 1,2001,
semiannually thereafter on December 1 and June 1 of each year to the maturity or
redemption thereof. If any Bond is not paid upon proper presentment at its
date, the City shall have the obligation to pay interest at the same rate from and
maturity date until such Bond, both principal and interest, is paid in full.
Bonds shall be negotiable instruments to the extent provided by
8-102 and RCW 62A. 8-105.
the date of issue of the Bonds, all Bonds maturing in the same maturity year
issued in the form of a single certificate, which certificate shall be registered in
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the name of the Custodian or its nominee, and delivered to the Custodian. The Custodian
shall hold each such Bond certificate in fully immobilized form for the benefit of the
Beneficial Owners pursuant to the Letter of Representations until the earliest to occur of
either (1) the date of maturity of the Bonds 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 Bonds coming due on such date, and the cancellation thereof,
(2) the Book-Entry Termination Date; or (3) the date the City determines to utilize a new
Custodian for the Bonds, at which time the old Custodian shall (provided the City is not
then in default of any payment then due on the outstanding Bonds) surrender the
immobilized certificates to the Registrar for transfer to the new Custodian and
cancellation as herein provided.
For so long as any outstanding Bonds are registered in the name of the Custodian
or its nominee and held by the Custodian in fully immobilized form as described in this
Section 2, the fights of the Beneficial Owners shall be evidenced solely by an electronic
and/or manual entry made from time to time on the records established and maintained by
the Custodian in accordance with the Letter of Representations, and no certificates
evidencing such Bonds shall be issued and registered in the name of any Beneficial
Owner or such Beneficial Owner's nominee.
The City may terminate the "book-entry" system of registering ownership of the
Bonds at any time (provided the City is not then in default of any payment then due on
the outstanding Bonds) by delivering to the Registrar: (a) a written request that it issue
and deliver Bond certificates to each Beneficial Owner or such Beneficial Owner's
nominee on the Book-Entry Termination Date; (b) a list identifying the Beneficial
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Owners as to both name an.¢ address; and (c) a supply of Bond certificates, if necessary
for such purpose. Upon surrender to the Registrar of the immobilized certificates
evidencing all of the then outstanding Bonds, the Registrar shall issue and deliver new
certificates to each Beneficial Owner or such Beneficial Owner's duly appointed agent,
naming such Beneficial Owner or such Beneficial Owner's nominee as the Owner
thereof. Such certificates may be in any integral multiple of $5,000 within a single
maturity. Following such issuance, the Owners of such Bonds may transfer and
exchange such Bonds in accordance with Section 10 hereof.
Neither the City nor the Registrar shall have at any time any responsibility or
liability to any Beneficial Owner of Bonds or to any other person for any error, omission,
action or failure to act on the part of the Custodian with respect to payment, when due, to
the Beneficial Owner of the principal and interest on the Bonds, proper recording of
beneficial ownership of Bonds, proper transfers of such beneficial ownership, or any
notices to Beneficial Owners or any other matter pertaining to the Bonds.
Section 3. Place, Manner and Medium of Payment. Both the principal of and
interest on the Bonds shall be payable in lawful money of the United States of America.
Prior to the Book-Entry Termination Date, the principal and interest on the Bonds shall
be paid by the Registrar to the Custodian as the Owner thereof, for the benefit of the
Beneficial Owners thereof, in accordance with the Letter of Representations.
From and after the Book-Entry Termination Date, interest on the Bonds shall be
paid by check or draft mailed on or before the interest payment date, to the persons
identified as the Owners on the fifteenth day of the month preceding the interest payment
date at the addresses shown for the Owners on the Bond Register. From and after the
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Book-Entry Termination Date, principal of the Bonds shall be payable upon presentation
and surrender of the Bonds by the Owners at the principal corporate trust office of the
Registrar.
Section 4. Optional Redemption~ Partial Redemption; Notice; Open Market
Purchase; Cancellation. The Bonds maturing in the years 2001 through 201 l, inclusive,
shall not be subject to redemption prior to maturity. The Bonds maturing on or after
December l, 2012 shall be subject to redemption prior to maturity at the option of the
City, in whole or in part on any date (maturities to be selected by the City and by lot
within a maturity in such manner as the Registrar shall determine), commencing on
December 1,201 l, at a price of par plus accrued interest to the date of redemption.
Any Bond in the principal amount of greater than $5,000 may be partially
redeemed in any integral multiple of $5,000. Prior to the Book-Entry Termination Date,
Bonds shall be partially redeemed in accordance with the Letter of Representations.
From and after the Book-Entry Termination Date, in the event of a partial redemption of
a Bond, upon surrender of such Bond the principal corporate trust offices of the Registrar,
a new Bond or Bonds (at the option of the Owner) of the same maturity and interest rate
and in the aggregate principal amount remaining unredeemed shall be authenticated and
delivered to the Owner, without charge to the Owner therefor, in any denomination
authorized by this Ordinance and selected by the Owner.
Prior to the Book-Entry Termination Date, the Registrar shall give, or cause to be
given, notice of a call for redemption of any Bonds to the Custodian, as the Owner
thereof, for the benefit of the Beneficial Owners thereof, in accordance with the Letter of
Representations. From and after the Book-Entry Termination Date, notice of any such
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intended redemption shall b.e given by or on behalf of'the City not less than 30 nor more
than 60 days prior to the date fixed for redemption by first-class mail, postage prepaid, to
the Owner of each Bond to be redeemed at the address appearing on the Bond Register on
the day the notice is given. The requirements, of this section shall be deemed to be
complied with when notice is mailed as herein provided, whether or not it is actually
received by the Owner. In addition, such redemption notice shall be mailed within the
same time period, postage prepaid, to the Depositories, to each NRMSIR and to
or their successors, but such mailings shall not be a
condition precedent to the redemption of such Bonds.
If such notice to the Owners shall have been given and the City shall have set aside
sufficient money for the payment of all Bonds called for redemption on the date fixed for
redemption, the Bonds so called shall cease to accrue interest after such redemption date,
and all such Bonds shall be deemed not to 'be outstanding hereunder for any purpose,
except that the Owners of such Bonds shall be entitled to receive payment of the
redemption price and interest accrued on the principal of the Bonds to the redemption
date from the money set aside for such purpose.
The City reserves the right to purchase any or all of the Bonds on the open market
at any time and at any price.
All Bonds purchased or redeemed by the City shall be surrendered to the Registrar
for cancellation.
Section 5. Debt Limit Not Exceeded. The City finds and covenants that the
Bonds are issued within all constitutional and statutory debt limitations presently
applicable to the City.
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Section 6. Pledge 0fFull Faith, Credit and Resources. The Bonds are limited tax
general obligations of the City. The City hereby irrevocably covenants to include in its
budgets and to make annual levies of taxes within the constitutional and statutory tax
limitations provided by law without a vote up.on 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 Bonds as the same shall become due.
The City hereby irrevocably pledges its full faith, credit and resources to the annual levy
and collection of such taxes and for the prompt payment of such principal and interest.
Further, the City pledges to the payment of principal of and interest on the Bonds the
revenue generated by green fees paid at the Golf Complex, less operating and
maintenance expenses of the Golf Complex.
The City hereby irrevocably covenants that the annual tax provided for herein to
be levied for the payment of the principal of and interest on the Bonds 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 Bonds 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 Bonds as the same shall become due.
Section 7. Form of Bonds. The Bonds shall be typewritten, printed or
lithographed on good bond paper in a form consistent with this ordinance and
Washington law.
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Section 8. Execution of Bonds. The Bonds shall be signed on behalf of the City
with the facsimile or manual signatures of the Mayor and the City Clerk, and shall have
the seal of the City impressed or a facsimile thereof imprinted thereon.
In case either or both of the officers who shall have executed any Bond shall
cease to be such officer or officers of the City before the Bond so signed shall have been
authenticated or delivered by the Registrar or issued by the City, such Bond nevertheless
may be authenticated, delivered and issued and upon such authentication, delivery and
issuance, shall be as binding upon the City as though those who signed the same had
continued to be such officers of the City. Any Bond also may be signed and attested on
behalf of the City by such persons as at the actual date of execution of such Bond shall be
the proper officers of the City although at the original date of such Bond such persons
were not such officers of the City.
Section 9. Authentication and Delivery of Bonds by Registrar. The Registrar is
authorized and directed, on behalf of the City, to authenticate and deliver Bonds initially
issued or transferred or exchanged in accordance with the provisions of such Bonds and
this Ordinance.
Only such Bonds as shall bear thereon a "Certificate of Authentication" manually
executed by an authorized signatory of the Registrar shall be valid or obligatory for any
purpose or entitled to the benefits of this Ordinance. Such Certificate of Authentication
shall be conclusive evidence that the Bonds so authenticated have been duly executed,
authenticated and delivered hereunder and are entitled to the benefits of this Ordinance.
The Registrar shall be responsible for its representations contained in the
Certificate of Authentication on the Bonds.
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Section 10. Registration; Transfer and Exchange. The Registrar shall keep, or
cause to be kept, the Bond Register at its principal corporate trust office.
The City and the Registrar, each in its discretion, may deem and treat the Owner
of each Bond as the absolute owner thereof for all purposes, and neither the City nor the
Registrar shall be affected by any notice to the contrary. Payment of any such Bond shall
be made only as described in Section 3 hereof, but such registration may be transferred as
herein provided. All such payments made as provided in Section 3 hereof shall be valid
and shall satisfy and discharge the liability of the City upon such Bond to the extent of
the amount or amounts so paid.
The registered ownership of any Bond may be transferred. Prior to the Book-
Entry Termination Date, the beneficial ownership of the Bonds may only be transferred
on the records established and maintained by the Custodian. On and after the Book-Entry
Termination Date, no transfer of any Bond shall be valid unless it is surrendered at any
principal corporate trust office of the Registrar, with the assignment form appearing on
such Bond duly executed by the Owner or such Owner's duly authorized agent, in a
manner satisfactory to the Registrar. Upon such surrender, the Registrar shall cancel the
surrendered Bond and shall authenticate and deliver, without charge to the Owner or
transferee therefor (other than any governmental fees or taxes payable on account of such
transfer), a new Bond or Bonds (at the option of the new Owner), of the same maturity
and interest rate and for the same aggregate principal amount, in any authorized
denomination, naming as Owner the person or persons listed as the assignee on the
assignment form appearing on the surrendered Bond, in exchange for such surrendered
and cancelled Bond.
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On and after the Book-Entry Termination Date, any Bond may be surrendered at
the principal corporate trust office of the Registrar and exchanged, without charge, for an
equal aggregate principal amount of Bonds, in any authorized denomination. The
Registrar shall not be obligated to transfer or.exchange any Bond during the 15 days
preceding an interest or principal payment or redemption date.
The Registrar may become the Owner of any Bond with the same fights it would
have if it were not a Registrar and, to the extent permitted by law, may act as depository
for and permit any of its officers or directors to act as a member of, or in any other
capacity with respect to, any committee formed to protect the rights of the Owners of the
Bonds.
The City covenants that, until all Bonds shall have been surrendered and
cancelled, it will maintain a system of recording the ownership of each Bond that
complies with the provisions of the Code.
Section 11. Mutilated, Lost, Stolen or Destroyed Bonds. If any Bond becomes
mutilated, lost, stolen or destroyed, the Registrar may authenticate and deliver a new
Bond of the same maturity and interest rate and of like tenor and effect in substitution
therefor, all in accordance with law. If such mutilated, lost, stolen or destroyed Bond has
matured, the City at its option, may pay the same without the surrender thereof.
However, no such substitution or payment shall be made unless and until the applicant
shall furnish (a) evidence satisfactory to the Registrar of the destruction or loss of the
original Bond and of the ownership thereof, and (b) such additional security, indemnity
or evidence as may be required by or on behalf of the City. No substitute Bond shall be
furnished unless the applicant shall reimburse the City and the Registrar for their
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respective expenses in the furnishing thereof. Any such substitute Bond so furnished
shall be equally and proportionately entitled to the security of this Ordinance with all
other Bonds issued hereunder.
Section 12. Defeasance. If money and/or "Government Obligations" (as such
obligations are defined in Chapter 39.53 RCW, as now in existence or hereafter
amended) maturing at such times(s) and bearing such interest to be earned thereon
(without any reinvestment thereof) as will provide a series of payments which shall be
sufficient, together with any money initially deposited, to provide for the payment of the
principal of and interest on all or a portion of the Bonds, when due in accordance with
their terms in accordance with a refunding plan adopted by the City, are set aside in a
special fund (hereinafter called the "trust account") to effect such payment and are
pledged irrevocably for the purpose of eft'coting such payment, then no further payments
need be made into the Bond Account for the payment of the principal of and the interest
on such Bonds, the Owners thereof shall cease to be entitled to any lien, benefit or
security of this Ordinance except for the right to receive the money and the principal and
interest proceeds on the obligations set aside in the trust account, and such Bonds shall no
longer be deemed to be outstanding hereunder.
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Section 13. Sale of the Bonds. The Purchaser has presented the Purchase
Agreement to the City pursuant to which the Purchaser has offered to purchase the
Bonds, under the terms and conditions provided in the Purchase Agreement, which
written Purchase Agreement is on file with the City Clerk and is incorporated herein by
this reference. The City Council finds that entering into the Purchase Agreement is in the
City's best interest and therefore accepts the offer contained in the Purchase Agreement
and authorizes the execution of the Purchase Agreement by City officials.
The Bonds will be prepared at City expense and will be delivered to the Purchaser
in accordance with the terms of the Purchase Agreement with the approving legal opinion ·
of the City's bond counsel relative to the issuance of the Bonds printed on each Bond or
attached thereto. Bond counsel has not been engaged to participate in the preparation or
review of, or express any opinion concerning the completeness or accuracy of the official
statement or other disclosure documentatiOn used in connection with the offer or sale of
the Bonds by any person, and bond counsel's opinion shall so state. Bond counsel has
not been retained to monitor, and shall not be responsible for monitoring, the City's
compliance with any federal law or regulations to maintain the tax-exempt status of the
interest on the Bonds.
Section 14. Delivery_ of Bonds; Temporary Bonds. The proper City officials,
including the City 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 Bonds, and to do everything necessary for the preparation and delivery
of a transcript of proceedings pertaining to the Bonds, and the printing, execution and
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prompt delivery of the Bonds to the Purchaser and for the proper application and use of
the proceeds of the sale thereof.
If definitive Bonds are not ready for delivery by the date established for Closing,
the City Treasurer, upon the approval of the Purchaser, may cause to be issued and
delivered to the Purchaser one or more temporary Bonds with appropriate omissions,
changes and additions. Any temporary Bond or Bonds shall be entitled and subject to the
same benefits and provisions of this ordinance with respect to the payment, security and
obligation thereof as definitive Bonds authorized hereby. Such temporary Bond or Bonds
shall be exchangeable without cost to the Owners thereof for definitive Bonds when the
latter are ready for delivery.
Section 15. Establishment of Bond Account; Application of Bond Proceeds.
There is hereby created and established in the office of the City Treasurer a special fund
to be designated as the "2001 Limited Tax General Obligation Bond Account" (the
"Bond Account"), to be created within the City's Gold Moumain Golf Course Fund (the
"Golf Course Fund")..
The accrued interest on the Bonds received by the City upon the sale of the
Bonds, if any, shall be deposited into the Bond Account and shall be applied to the
payment of interest coming due on the Bonds. All of the remaining net proceeds of the
Bonds shall be deposited by the City into the Golf Course Fund to pay the costs of the
Project, incidental costs thereto and costs of issuance of the Bonds.
Section 16. Tax-Exemption and Bank Qualification. The City covenants that it
will not take or permit to be taken on its behalf any action that would adversely affect the
exclusion of the interest on the Bonds from gross income for purposes of federal income
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taxation, and will take or re.quire to be taken such acts as may be permitted by
Washington law and as may from time to time be required under applicable law to
continue the exclusion of the interest on the Bonds from gross income for purposes of
federal income taxation. Without limiting the. generality of the foregoing, the City will
not invest or make or permit any use of the proceeds of the Bonds or of its other money at
any time during the term of the Bonds which would cause the Bonds to be "arbitrage
bonds" within the meaning of Section 148 of the Code.
The Bonds are intended to qualify for the $5,000,000 small governmental issuer
exception to the arbitrage rebate requirement, set forth in the Code. The City covenants
that, if the City issues more than $5 million in tax-exempt bonds in the calendar year
2001, it will calculate or cause to be calculated, and shall rebate to the United States, all
earnings from the investment of Bond proceeds that are in excess of the amount that
would have been earned had the yield on such investments been equal to the yield on the
Bonds, 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 Bonds
or any other funds held under this ordinance which would cause any Bond to be treated as
a "private activity bond" (as defined in Section 141(b) of the Code) subject to treatment
under said Section 141(b) as an obligation not described in Section 103(a) of the Code,
unless the tax exemption thereof is not affected.
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The City hereby designates the Bonds as "qualified tax-exempt obligations" for
purposes of Section 265 of the Code (relating to the deduction by financial institutions of
the interest incurred to carry tax-exempt debt), and authorizes and directs the proper City
officials to execute and deliver all documents necessary to evidence such designation to
any and all interested parties. The City further covenants not to issue more than
$10,000,000 of such "qualified tax-exempt obligations" during 2001.
Section 21. Preliminary Official Statement Declaration. The City has been
provided with copies of the Preliminary Official Statement, prepared in connection with
the sale of the Bonds. For the sole purpose of the Purchaser's compliance with Securities
and Exchange Commission Rule 15c2-12(b)(1), the City "deems final" the Preliminary
Official Statement, as of its date, except for the omission of information on offering
prices, interest rates, selling compensation, delivery dates, ratings, other terms of the
Bonds dependent on such matters.
Section 22. Undertaking to Provide Continuing Disclosure. This section
constitutes the City's written undertaking for the benefit of the Owners and the Beneficial
Owners of the Bonds required by subsection (d)(2)(ii) of the Rule.
The City hereby agrees to provide or cause to be provided to each then existing
NRMSIR and to the SID, if one is created, the following annual financial information and
operating data (collectively, the "Annual Financial Information") for each prior fiscal
year, commencing with the fiscal year ending December 31,2001, 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
18
2ND DRAFT 2/7/01
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principles may be changed ~om time to time and as permitted by state law; which
statements will not be audited, except that if and when audited financial statements are
otherwise prepared and available to the City, they will be provided (the "Annual
Financial Statements");
(b) Authorized, issued and outstanding balance of general obligations
bonds;
(c) The assessed valuation for the fiscal year
(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 Annual Financial Information, the City may cross-reference
to any "final official statement" (as defined in the Rule) available from the MSRB or any
other documents theretofore provided to each then existing NRMSIR or the SID, if one is
created.
The City further agrees to provide or cause to be provided, in a timely manner, to
the SID, if one is created, and to either the MSRB or each then existing N1LMSIR, notice
of any of the following events with respect to the Bonds, if material:
1. Principal and interest payment delinquencies;
2. Non-payment related defaults;
3. Unscheduled draws on debt service reserves reflecting financial
difficulties;
19
2ND DRAFT 2/7/01
For Discussion Purposes Only
4. Unscheduled draws on credit enhancements reflecting financial
difficulties;
5. Substitution of credit or liquidity providers, or their failure to
perform;
6. Adverse tax opinions or events affecting the tax-exempt status of the
Bonds;
7. Modifications to rights of the Owners of the Bonds;
8. Optional redemptions of the Bonds;
9. Defeasances of the Bonds;
10. Release, substitution or sale of property securing repayment of the
Bonds; and
11. Rating changes.
At, er the issuance of the Bonds, so long as the interests of the Owners or Beneficial
Owners of the Bonds will not be materially impaired thereby, as determined by a party
unaffiliated with the City (including, without limitation, a trustee for the Owners,
nationally recognized bond counsel or other counsel familiar with the federal securities
law), or pursuant to a favorable "no-action letter" issued by the SEC, this Section 22 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
offering, after taking into account any amendments or interpretations of the Rule, as well
as any change in circumstances.
20
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The City's obligation~ 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 Bonds. This Section 22 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 22 or any such provision are invalid,
have been repealed retroactively or otherwise do not apply to the City; and (ii) notifies
and provides the SID, if any, and either the MSRB or each then existing NRMSIR with
copies of such opinion.
The right of each Owner and Beneficial Owner of Bonds to enforce the provisions '
of this Section 22 shall be limited to the right to obtain specific enforcement of the City's
obligations under this Section 22, and any failure by the City to comply with the
provisions of this undertaking shall not be 'a default with respect to the Bonds under this
Ordinance.
The City Treasurer is authorized and directed to take such further action on behalf
of the City as may be necessary, appropriate or convenient to carry out the requirements
of this Section 22.
Section 23. Contract; Severability. The covenants contained in this ordinance
. shall constitute a contract between the City and the Owners of each and every Bond. The
City unconditionally covenants that it will keep and perform all of the covenants of the
Bonds and this Ordinance. If any one or more of the provisions of this Ordinance shall
be declared unconstitutional or invalid for any reason, such decision shall not affect the
validity of the remaining provisions of this Ordinance or the Bonds, and this Ordinance
21
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For Discussion Purposes Only
and the Bonds shall be construed and enforced as if such unconstitutional or invalid
provision had not been contained herein.
Section 24. 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, this. 14th
day of February, 2001.
· PASSED by the City Council of the City of Bremerton, Washington, this 21st day
of February, 2001.
JOHN LAW, Council President
APPROVED this __ day of February, 2001.
LYNN HORTON, Mayor
ATTEST:
Kathleen McCluskey, City Clerk
APPROVED AS TO FORM:
By.
Judith Andrews, Bond Counsel
PUBLISHED:
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For Discussion Purposes Only
EFFECTIVE DATE:
ORDINANCE NO.
23
PRELIMINARY OFFICIAL STATEMENT DA TED FEBRUARY 13, 2001
BOOK-ENTRY ONLY
NEW ISSUE MOODY'S RATING: Applied For
NEGOTIATED (See the caption "RATING" herein.)
In the opinion of Bond Counsel, as of the Date of Issue, and assuming the City fulfills ils covenant to comply with certain requirements of the Internal Revenue Code
of 1986, as amended (the "Code") that must be met.aubsequent to the issuance of the Bonds: interest on the Bonds is excluded from gross income for federal
income tax purposes, and is not an item of tax preference for purposes of determining the alternative minimum tax on individuals and corporations; and the Bonds
are "qualified tax-exempt obligations" for purposes of the partial interest expense deduction available under Section 265 of the Code. However, interest on the
· Bonds is included in the computation of other taxes, including without limitation the alternative minimum tax on corporations, and may be subject to other collateral
~ tax consequences. See "TAX EXEMPTION"and "OTHER TAX CONSEQUENCES"herein.
D RAFT
$3,100,000'
LIMITED TAX GENERAL 0BLIGATION BONDS, 2001
~ DATED: March 1, 2001 DUE: December 1, as shown below
~ The City's Limited Tax General Obligation Bonds, 2001 (the "Bonds"), are issued in fully registered form, and will be fully registered in the
~ name of Cede & Co., as Bondowner and nominee for The Depository Trust Company ("DTC"), New York, New York. DTC will act as
~ securities depository for the Bonds. The Bonds will be initially issued in book-entry form only in the principal amount of $5,000 each or any
~ integral multiple thereof within a single maturity. Purchasers will not receive certificates representing their interest in the Bonds purchased.
~ The Bonds bear interest payable on June 1, 2001 and each December I and June 1 thereafter until maturity or prior redemption. The
.o_: principal of and interest on the Bonds are payable by the fiscal agency of the State of Washington, currently The Bank of New York, New
~ York, New York (the "Fiscal Agent" or "Registrar"). For so long as the Bonds 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 Bonds as described in Appendix B "DTC AND BOOK-ENTRY SYSTEM" hereto.
MATURITY SCHEDULE'
'~ Due Yield or Due Yield or
.~ December 1 Amount Rate Price December 1 Amount Rate Price
_,2~~' ~ ~ 2001 $ 75,000 % 2011 $ 155,000 %
o 2002 105,000 2012 160,000
· [ 2003 110,000 2013 170,000
2004 115 000 2014 175,000
2005 120 000 2015 185,000
2006 125 000 2016 190,000
2007 130 000 2017 200,000
2008 135 000 2018 210,000
2009 140 000 2019 220,000
2010 145 000 2020 235,000
(Plus accrued interest from March 1, 2001)
The Bonds maturing on or after December 1, 2012 are subject to redemption at the option of the City on or after December 1 2011 as further
described herein under "DESCRIPTION OF THE BONDS - Optional Redemption."
he Bonds are ....... hm~ted tax general obhgations of the City. The City has rrevocably covenanted that, unless the principal of and interest on the
Bonds are pa~d from other sources, so long as the Bonds are outstanding the C~ty wdl include ~n ~ts budgets and make annual levies of taxes
upon all property within the City subject to taxation without a vote in a~nounts sufficient, together with any ether money legally available
therefor, to pay such principal and interest 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
BONDS - Security" herein. '
The City has designated the Bonds as "qualified tax-exempt obligations" under the internal Revenue Code of 1986 as amended for banks
thrift institutions and other financia nstitut ohs. See q'AX EXEMPT ON" and "OTHER TAX CONSEQUENCES" herein.
The Bonds are offered by the Underwriter when, as, and if issued, subject to the approving legal opinion of Gottlieb, Fisher & Andrews, PLLC,
Bond Counsel, Seattle, Washington, a copy of which opinion will be delivered with the Bonds. The Bonds in definitive book-entry form are
expected to be ready for delivery through the facilities of DTC in New York, New York, on or around March __, 2001.
This cover page contains certain information for quick reference only. It is not a summary of this issue. Investors must read the entire Official
Statement to obtain information essential to making an informed investment decision.
Banc of America Securities LLC
Preliminary, subject to change.
Representations
The Underwriter has provided the following sentence for inclusion in this Official Statement. The
Underwriter has reviewed the information in this Official Statement in accordance with, and as part of, its
responsibilities to investors under the federal securities laws as applied to the facts and circumstances of
this transaction, but the Underwriter does not guarantee the accuracy or completeness o£ such
information.
The delivery of this Official Statement does not imply that the in£o~mation 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 mu~t not be relied upon as having been authorized by the
City or the Underwriter. This Official Statement does not constitute an offer to sell, nor shall there be any
sale of the Bonds by any person in any jurisdiction in which it is unlawful for such person to make such a
sale.
Disclosure Statement
The City will deliver 'to the Underwriter at the time of delivery of the Bonds a signed statement
substantially to the effect that this Preliminary Official Statement, as of its date and as of the date of the
Bonds, neither contains any untrue statement of a material fact nor omits to state any material fact
necessary to make the statements therein, in light of the circumstances under which they were made, not
misleading in any material respect and, to its knowledge, that there has not been any material adverse
change in the normal operations or financial condition of the City nor, to the best of the City's
knowledge, in the general economy of the City since the date of the Preliminary Official Statement. ,
This Preliminary Official Statement, as of its date, is in a form "deemed final" by the City for purposes of
SEC Rule 15c2-12(b)(1) but is subject to revision, amendment, and completion in a final Official
Statement which will be available within seven days of the sale date.
Secondary Market
It has been the practice of the Underwriter to maintain a secondary market in municipal bonds which it
sells. The Underwriter intends to engage in secondary market trading of the Bonds, subject to applicable
securities laws. The Underwriter, however, is neither obligated to engage in secondary trading nor to'
repurchase any of the Bonds at the request of the registered owners thereof and no assurance can be given
that a secondary market for the Bonds will be available.
In connection with the offering of the Bonds, the Underwriter may over-allot or effect transactions that
stabilize or maintain the market price of the Bonds at a level above that which might otherwise prevail in
the open market. Such stabilizing, if commenced, may be discontinued at any time.
i
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
Carol Arends Member 2001
Mike Shepherd Member 2001
Cecil McConnell Member 2003
Conrad Esser Member 2003
David Farr Member 2003
Edward Rollman Member 2003
Jim Reed Member 2001
APPOINTED CITY OFFICIALS
Richard Hanna Treasurer
Kathleen M¢Cluskey Administrative Services Director/City Clerk
BOND COUNSEL
Gottlieb, Fisher & Andrews, PLLC
Seattle, Washington
U N D ERWRITER
Banc of America Securities LLC
Seattle, Washington
ii
TABLE OF CONTENTS
· : Page
Introduction
Description of the Bonds .............................................................................................................................. 1
Debt Payment Record ................................................................................................................................... 3
Future Financing ........................................................................................................................................... 3
Assessed Valuation Determination. .............................................................................................................. 3
Tax Collection Procedure ............................................ : ................................................................................ 4
Authorization of Debt .............................................. '. .................................................................................... 4
General Obligation Indebtedness ................................................................................................................. 4
Limits on Amount of General Obligation Indebtedness .............................................................................. 4
Authorization of Short-Term Debt ............................................................................................................... 5
Taxing Powers and Limitations .................................................................................................................... 5
Initiative and Referendum ............................................................................................................................ 6
Auditing of City Finances ............................................................................................................................ 7
Authorized Investments ................................................................................................................................ 7
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 .......................................................................................................................... 10
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 ............................................................ i .................................................................................... 13
General and Economic Information ........................................................................................................... i4
Preservation of Tax Exemption .................................................................................................................. 18
Conflicts of Interest .................................................................................................................................... 18
Tax Exemption ........................................................................................................................................... 18
Other Tax Consequences ............................................................................................................................ 18
Absence of Material Litigation ................................................................................................ i .................. 19
Approval of Bond Counsel ......................................................................................................................... 19
Continuing Disclosure ................................................................................................................................ 19
Rating .................................................................................................................................. .. ...................... 20
Underwriting .............................................................................................................................................. 21
Concluding Statement ................................................................................................................................ 21
Form of Legal Opinion ................................................................................................................ Appendix A
DTC and Book-Entry System ...................................................................................................... Appendix B
Ill
PRELIMINARY OFFICIAL STATEMENT
CITY OF BREMERTON, WASHINGTON
$3,100,000'
LIMITED TAX GENERAL OBLIGATION BONDS, 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 $3,100,000' principal amount of Limited Tax General Obligation Bonds, 2001 (the "Bonds").
This Official Statement provides information concerning the City and the Bonds.
DESCRIPTION OF THE BONDS
Principal Amounts, Date, Interest Rates, and Maturities
The Bonds will be issued in the principal amount of $3,100,000' and will be dated and bear interest from March
1, 2001 until their stated maturity or prior redemption. The Bonds will mature annually on December 1,
commencing December 1, 2001, in the amounts and will bear interest payable semi-annually, on each June 1 and
December 1, commencing June 1, 2001, at the rates set forth on the cover page of this Official Statement.
Interest on the Bonds will be computed on the basis of a 360-day year of twelve 30-day months.
Early Redemption and Open Market Purchase
The Bonds maturing in years 2001 through 2011, inclusive, are not subject to redemption prior to maturity. The
Bonds maturing on or after December 1, 2012 are subject to redemption prior to maturity at the option of the City
on or after December 1,2011 in whole or in part on any date (maturities to be selected by the City and by lot
within a maturity in such a manner as the Registrar shall determine) at a price of par, plus accrued interest to the
date fixed for redemption.
Any Bond in the principal amount of greater than $5,000 may be partially redeemed in any integral multiple of
$5,000. So long as Cede & Co. is the registered owner of the Bonds, Bonds shall be partially redeemed in
accordance with the Letter of Representations. In the event of a partial redemption of aBond when the Bonds are
not subject to the book-entry only system, upon surrender of such Bond the principal corporate trust offices of the
Registrar, a new Bond or Bonds (at the option of the Owner) of the same maturity and interest rate and in the
aggregate principal amount remaining unredeemed shall be authenticated and delivered to .the Owner, without
charge to the Owner therefor, in any denomination authorized by the Ordinance and selected by the Owner.
The City reserves the right and option to purchase any or all of the Bonds in the open market at any time at any
price.
Notice of Redemption
Prior to the Book-Entry Termination Date, the Registrar shall give, or cause to be given, notice of a call for
redemption of any Bonds to the Custodian, as the Owner thereof, for the benefit of the Beneficial Owners thereof,
in accordance with the Letter of Representations. From and after the Book-Entry Termination Date, notice of any
such intended redemption shall be given by or on behalf of the City not less than 30 nor more than 60 days prior
to the date fixed for redemption by first-class mail, postage prepaid, to the Owner of each Bond to be redeemed at
the address appearing on the Bond Register on the day the notice is given. These requirements shall be deemed to
be complied with when notice is mailed as described above, whether or not it is actually received by the Owner.
* Preliminary, subject to change.
1
Paying Agent
Principal of and interest on the Bonds will be payable by the State fiscal agency (the "Fiscal Agent" or
"Registrar") in New York, New York, or Seattle, Washington, 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 Bonds, principal of and interest on the Bonds are payable by wire transfer by the Registrar
to DTC, which, in turn, is obligated to remit such principal and interest to the DTC Participants for subsequent
disbursement to the Beneficial Owners of the Bonds, as further described in "APPENDIX B - DTC AND BOOK
ENTRY SYSTEM" hereto.
Form, Denomination and Registrar
The Bonds will be issued in fully registered form as to both principal and interest in the denomination of $5,000
or any integral multiple thereof within a single maturity. The Bonds, when issued, will be registered in the name
of Cede & Co., as registered owner and nominee of The Depository Trust Company, New York, New York
("DTC").
Book-Entry Transfer System
DTC will act as securities depository for the Bonds. Individual purchases may be made in book-entry form only.
Purchasers will not receive certificates representing their interest in the Bonds purchased. So long as Cede 8,: Co.
is the registered owner of the Bonds, as nominee of DTC, references herein to the registered owners or Bond
owners will mean Cede 8,: Co. and will not mean the "Beneficial Owners" of the Bonds. In this Official
Statement, the term "Beneficial Owner" will mean the person for whom a DTC participant acquires an interest in
the Bonds. See "APPENDIX B - DTC AND BOOK ENTRY SYSTEM" hereto.
Termination of Book-Entry Transfer System
If the City is unable to retain a qualified successor to DTC or the City has determined that it is in the best interest
of the City not to continue the book-entry system of transfer or that interests of the Beneficial Owners of the
Bonds might be adversely affected if the book-entry system of transfer is continued, the City will execute,
authenticate and deliver at no cost to the Beneficial Owners of the Bonds or their nominees, Bonds in fully
registered form, in the denomination of $5,000 or any integral multiple thereof within a single maturity.
Thereafter, interest on the Bonds shall be paid by check or draft mailed on or before the interest payment date3 to
the persons identified as the Owners on the fifteenth day of the month preceding the interest payment date at the
addresses shown for the Owners on the Bond Register. Principal of the Bonds shall be payable upon presentation
and surrender of the Bonds by the Owners at the principal corporate trust office of the Registrar.
Authorization
The Bonds 'are issued in accordance with the provisions of the Constitution and applicable statutes of the State of
Washington, pursuant to Ordinance No. __ (the "Ordinance") of the City Council, adopted on February
2001.
Security
The Bonds are limited tax general obligations of the City. Although the Bonds are limited tax general obligations,
it is the City's expectation that revenues from the operation of the Gold Mountain Golf Complex will be used to
pay the debt service requirements of the Bonds.
Unless the principal of and interest on the Bonds are paid from other sources, so long as the Bonds are
outstanding, the City has irrevocably covenanted in the Ordinance to include in its budgets and to make annual
levies of taxes within the constitutional and statutory tax limitations provided by law without a vote 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 Bonds as the same shall become due. The City
has irrevocably pledged its full faith, credit and resources to the annual levy and collection of such taxes and for
the prompt payment of such principal and interest.
The City has irrevocably covenanted that the annual tax to be levied for the payment of the principal of and
interest on the Bonds 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 Bonds are outstanding,
2
Purpose
The proceeds of the Bonds will be used to design, construct and furnish a new clubhouse at the City's Gold
Mountain Golf Complex.
Gold Mountain Gol£ Complex
Located eight miles from downtown Brcmerton on a portion of the City's 8,500-acre watershed, the City's Gold
Mountain Golf Complex (the "Complex") is operated as an enterprise fund of the City.
The original course, built in 1972 and now named the Cascade Course, has been rated as one of the top public
courses in the State of Washington by Pacific Northwest Golf magazine (1994 issue).
The new course, named the Olympic Course, was designed by architect John Harbottle and opened for play in the
fall of 1996. The Olympic Course has received very positive reviews from both regional and national golf
industry publications, including being named one of the top ten new public courses in the nation by Golf
Magazine in February 1997 and as the second best new public course in the nation by Golf Digest in December of
1997.
The Complex is operated by the City as an enterprise with the objective of making a profit and simultaneously
meeting as many of the golfing community's needs as possible. The profit made is used to fund improvements to
the golf complex as well as other park and recreation facilities within the City. Since 1984, the City has
contracted the management and operation of the golf complex to a private contractor.
It is the City's expectation that revenues from the operation of the golf complex will be used to pay the debt
service requirements of the Bonds.
Failure to Pay the Bonds at Maturity
If any Bond is not paid upon proper presentment at its maturity, the City is obligated to pay interest on that Bond
at the same rate provided in the Bond from and after such maturity date until such Bond, both principal and
interest, is paid in full.
DEBT PAYMENT RECORD
The City has always promptly met principal and interest payments on outstanding obligations when due.
Additionally, no refunding Bonds have been issued for the purpose of preventing an impending default.
FUTURE FINANCING
No additional long-term debt is expected to be issued by the City within the next 12 months.
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 tax roll is filed in the Assessor's office.
The Assessor's determinations are subject to revision by the County Board of Equalization and, for certain
property, subject to further revision by the State Board of Equalization. After all administrative procedures are
completed, the taxing unit receives the Assessor's final certificate of assessed value of property within the taxing
unit.
3
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 $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 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. (SeeAlgona 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,
differentiated by the limits on the real and personal property taxes which may be collected for the payment
thereof.
Limited tax general obligation indebtedness is payable from taxes upon all the taxable property in the City which
may be imposed by the City within the limitations prescribed by State statute without a 'vote of the people
(sometimes referred to as "non-voted debt" or "non-voted bonds," or "councilmanic bonds" or "limited tax
bonds"). The statutory limits on the levy of such taxes are described in the section herein entitled "LIMITS ON
AMOUNT OF GENERAL OBLIGATION INDEBTEDNESS."
Unlimited tax general obligation indebtedness is payable from taxes without limitation as to rate or amount,
imposed upon all taxable property in the City. Unlimited tax indebtedness may be incurred only after approval by
60% of the City voters at an election in which the total vote cast exceeds 40% of the votes cast at the last
preceding general election of the City or State. Such unlimited tax indebtedness is sometimes referred to as
"voted debt," "voted bonds" or "unlimited tax bonds."
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.
4
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 canno't 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 with the other non-voted general obligation indebtedness of the City, does not
exceed 3/4 of 1% of the value of taxable property in the City; any item so purchased must be budgeted for
payment in accordance with the terms of the contract.
TAXING POWERS AND LIMITATIONS
Pursuant to chapter 84.52.043 RCW, cities may levy, without a vote of the residents residing therein, a maximum
of $3.375 per thousand for general city purposes (the "regular levy"). Cities with full-time firemen, such as the
City, 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 currently levying $3.325 per
thousand dollars of taxable assessed valuation for its regular levy.
According to RCW 27.12.390, any city or town annexed to a rural library district, island library district, or inter-
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
5
factor is defined in the Property Tax Act as (i) the lesser of 106% or 100% plus inflation, or (ii) any amount up to
106% if approved by a majority plus one vote of the governing body of the municipality upon a finding of
substantial need. The regular property taxes levied by a city may be increased above the limit factor upon the
affirmative vote of a majority of the voters residing in the municipal entity at an election held for such purposes
(RCW 84.55.050).
INITIATIVE AND REFERENDUM
Under the State Constitution, the voters of the State have the ability to initiate legislation and modify existing
legislation through the powers of initiative and referendum, respectively. The initiative power in Washington
may not be used to amend the State Constitution. Initiatives and referenda are submitted to the voters upon
receipt of a petition signed by at least 8% (initiative) and 4% (referenda) of the number of voters registered and
voting for the office of Governor at the preceding regular gubernatorial election. Any law approved in this
manner by a majority of the voters may not be amended or repealed by the Legislature within a period of two
years following enactment, except by a vote of two-thirds of all the members elected to each house of the
Legislature. After two years, the law is subject to amendment or repeal by the Legislature in the same manner as
other laws.
Initiative 695
Washington State Initiative Measure No. 695 ("I-695"), requiring voter approval for any increase in taxes, impact
fees, pern~it 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 ("1-722"). 1-722 provides that any "tax"
increase adopted by the State or any local government from July 2, 1999 (the date on which 1-695 first qualified
for the ballot) through December 31, 1999 (the last day before the effective date of 1-695) is null and void and
must be refunded to the taxpayers. "Tax" is defined in 1-722 to include, but is not limited to, water, sewer and
utility charges, sales and use taxes, property taxes, business and occupation taxes, impact, license and permit fees,
and any monetary charge by government. 1-722 purports to exempt persons from paying the portion of property
taxes attributable to any increase in value of property (other than for new construction or manufacture) over its
1999 valuation level, plus the lesser of 2% per year or the annual inflation rate (whichever is less). The measure
also reduces the limit on the total dollar amount of regular property taxes that may be levied annually by a taxing
district, without a vote of its electors, from 106% to 102% of the highest levy in the three previous years. Further,
it eliminates a statutory provision that allowed taxing districts to forego non-voted tax increases in any year, yet
when levying taxes in future years to calculate the allowable tax level on a base that included the years in which
no tax increase was actually imposed.
The City implemented several tax and fee increases during the period between July 2 and December 31, 1999
including changes to the greens fees charged at the golf complex and its property taxes for calendar year 2001.
All of these tax and fee increases were reauthorized by the City Council in December of 2000, prim' 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.
6
of the State are being complied with, and the methods and accuracy of the accounts and reports of the City.
Reports of the Auditor's examinations are required to be filed in the office of the State Auditor and in the auditing
department of the City.
.-
AUTHORIZED INVESTMENTS
Chapter 39.59 RCW limits the investment of public funds to the following authorized investments: bonds of the
State and any local government in the State, which bonds are rated at the time of investment in one of the three
highest credit ratings by a nationally recognized rating agency; general obligation bonds of other states and
subdivisions thereof so long as those bonds are rated in one of the three highest categories; registered warrants' of
a local government within the same county as the entity making the investment; and any investment authorized by
law for the treasurer of the State or any local government exclusive of certificates of deposit of banks or bank
branches not located in the State. Under chapter 43.84 RCW, the State Treasurer may invest in non-negotiable
certificates of deposit in designated qualified public depositories; in obligations of the U.S. government, its
agencies and wholly owned corporations; in bankers' acceptances; in commercial paper; in repurchase
agreements; in the obligations of the federal home loan bank, federal national mortgage association and other
government corporations subject to statutory provisions. Utility revenue bonds and warrants of any city and
bonds or warrants of a local improvement district are also eligible investments (RCW 35.39.030).
Any municipal corporation, including the City, may authorize the investment of funds not required for immediate
expenditure by the County Treasurer. Such funds of the City, including debt service funds, may be invested by
the County Treasurer. The County Treasurer may, upon the request of one or more units of local government that
invest their money with the County, combine that money for the purposes of investment (RCW 36.29.022). The
office of the County Treasurer receives up to five percent of the earnings on such investments, subject to a
maximum of $50 on each transaction, as its investment service fee. The County Treasurer may reimburse its
office for any expenses incurred in the establishment and maintenance of such a County investment pool (RCW
36.29.024).
Local Government Investment Pool
The State Treasurer's Office administers the Washington State Local Government Investment Pool (the "LGIP"),
a $3.5 billion fund that invests money on behalf of more than 350 cities, counties and special taxing districts. In
its management of LGIP, the State Treasury adheres, at all times, to the principles appropriate for the prudent
investment of public funds. These are, in priority order, (i) the safety of principal; (ii) the assurance of sufficient
liquidity to meet cash flow demands; and (iii) to attain the highest possible yield within the constraints of the first
two goals. Historically, the LGIP has had sufficient liquidity to meet all cash flow demands.
The LGIP, authorized by chapter 43.250 RCW, is a voluntary pool that provides its participants the opportunity to
benefit from the economies of scale inherent in pooling. It is also intended to offer participants increased safety of
principal and the ability to achieve a higher investment yield than would otherwise be available to them. The
LGIP is a conservatively managed, highly liquid money market fund. The pool is restricted to investments with
maturities of one year or less, and the average investment life typically is less than 90 days. Permissible
investments include U.S. government and agency securities, bankers' acceptances, high quality commercial
paper, repurchase and reverse repurchase agreements, and certificates of deposit issued by qualified Washington
State depositories.
Authorized Investments for Bond Proceeds
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 t~vo highest rating
categories. Bond proceeds may also be invested in shares of money market funds with portfolios of securities
otherwise authorized by law for investment by local governments (RCW 39.59.030).
The City's Investments
The investments of the City, except those of the Community Development Block Grant Fund, are managed in a
pooled format. Interest earnings are distributed monthly to the individual funds based on their respective
balances at the beginning of the month. These pooled investments are classified on the balance sheet as cash and
equivalents. As required by state statue, all investments and deposits of the City's funds are obligations of the
U.S. Government, U.S. agency issues, deposits with the State Treasurer's LGIP, prime bankers' acceptances,
7
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 DEBT~
(AS of December 31,2000)
Direct Debt:
Voted General Obligation Bonds Outstanding ................................$ 1,005,000
Non-Voted Bonds Outstanding ...................................................... 7,435,000
The Bonds ....................................................................................... 3,100,0002
Non-Voted General Obligation Tax Anticipation Notes ................. 1,250,000
Bank Line of Credit Outstanding .................................................... 0
Less: Debt Service Fund Balance .................................................... (324,450)
Net Direct O~bt .................................................................. $ 12,465,550
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 i0.69% $ 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: ..................................... · $ 39,5-77,051
BONDED DEBT RATIOS OF THE CITY
Assessed Valuation for Collection Year 20013 ................................................... $ · 1,482,231,297
Estimated City Population (2000)4 .................................................................... 36,160
Assessed Valuation Per Capita ........ ~ ...................................................................... $ 40,991
Net Direct Debt to Assessed Valuation. .................................................................... 84%
Net Direct and Estimated Overlapping Debt to Assessed Valuation ...................... 2.67%
Net Direct Debt Per Capita ..................................................................................... $ 345
Net Direct and Estimated Overlapping Debt Per Capita ......................................... $ 1,094
1 Includes the Bonds. Sources: the City and Kitsap County Assessor's and Treasurer's office.
2 Preliminary, subject to change.
3 Assessed valuation for tax collection year 2001 is stated as the full assessed value of all taxable real and personal property in the City.
4 Source: Washington State Office of Financial Management.
8
STATUTORY DEBT LIMIT CALCULATIONl
(As of December 31, 2000)
2000 Assessed Valuation for Collection Year 2001 .............................................. $ 1,482,231,2972
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 Bonds .......................................................................................... (3,100,000)3V//ji
Less: Non-Voted Notes Outstanding ? (1,250,000)~ ~,~.
324'450 ~,/'
Plus: Cash and Investments in Debt Service Funds ....................................
Remaining Capacity for General Purposes (Non-voted) ...................... $ 10,772,919
b. Voted Indebtedness Limit (2.5% of Assessed Valuation) ................................ $ 37,055,782
Less: Voted Bonds Outstanding .................................................................. ( 1,005,000)
Less: Non-Voted Notes Outstanding ........................................................... (1,250,000)
Less: Non-Voted Bonds Outstanding (including the Bonds) ...................... (10,535,000)3
Plus: Cash and Investments in Debt Service Funds .................................... 324,450v
Remaining Capacity for General Purposes (Voted) ............................. $ ' 24,590,232
II. Utility Purposes (2.5% of Assessed Valuation)
Limit ............................................................................................................... $ 37,055,782
Less: Bonds Outstanding ................................................................................ 0
Remaining Capacity for Utility Purposes .............................................. $ 37,055,782
III. Parks and Open Space Purposes (2.5% of AsSessed Valuation)
Limit ............................................................................................................... $ 37,055,782
Less: Bonds Outstanding ................................................................................ 0
Remaining Capacity for Parks and Open Space Purposes .................... $ 37,055,782
IV. Capital Facilities for Economic Development (2.5% of Assessed Valuation)
Limit ............................................................................................................... $ 37,055,782
Less: Bonds Outstanding ................................................................................ 0
Remaining Capacity for Economic Development ................................ $ 37,055,782
I 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.
3 Preliminary, subject to change.
9
70
AD VALOREM TAX RECORD OF THE CITYl
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 TAXPAYERS5
CITY OF BREMERTON
Assessed Valuation for 2001
Taxpayer Business Collection Year
Puget Sound Energy Utility $ 36,906,886
US West Communications Inc. Utility 25,397,583
Michael Connolly (Trustee for Bremer Properties) Retail, Parking 8,201,000
Bay Pointe Retirement Community Retirement/Nursing Home 7,451,057
Haselwood, Charles & Joanne Land/Automotive Retail 7,042,900
Kitsap Physicians Services Health Plans Health Care 6,834,875
Merit Company Retail 6,729,000
Erlands Associates LLC Apartments 6,688,000
Viewcrest Villages LTD Parmership 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
1 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.
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COMPARATIVE STATEMENT OF GENERAL FUND
REVENUES AND EXPENDITURESi
(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 1,114,093 1,027,234 812,436 742,432 847,272
Charges for Services 1,870,719 1,596,652 1,762,945 1,864,848 1,783,646
Fines & Forfeits 500,039 446,715 512,828 433,775 483,964
Miscellaneous 324,931. 383,402 290,343 342,700 248,743
Total Revenues $ 21,128,776 $ 19,969,740 $ 19,406,271 $ 19,194,875 $18,164,181
Expenditures:
GeaeralGovernment $ 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 $ (I 18,744) $ (130,861) $ (261,495) $ 113,916 $ (298,950)
(Uses)
Fund Balance, January 1 $ 314,484 $ 701,726 $ 861,135 $ 709,671 $ 1,064,368
Prior Year's Corrections 0 0 0 0 0
Residual Equity Transfers 477 0 0 6,435 (65,128)
Other Equity Changes 7,557 15,332 1,438 30,554 (1,219)
Total Ending Fund Balance $ 714,973 $ 314,484 $ 701,726 $ 861,135 $ 709,671
CONTINGENCY RESERVE FUND
YEAR-END BALANCES], 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
7,)--
GENERAL FUND BUDGET FOR 2000 AND 20011
(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 2,1 t2,583
Police & Fire Pension 1,533,395 1,554,786
Parking 610,000 0
Intergovernmental Service 193,556 134,44,7
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
1
Source: City of Bremerton.
2
City Clerk, Treasurer, Information Services, Municipal Court and Risk Management are combined under Administrative Services.
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SCHEDULE OF GENERAL OBLIGATION BOND DEBT SERVICE FOR THE CITY
(Years Ending December 31)
Outstanding Non-
Voted General ·' Voted General I Total
Obligation Bonds Obligation Bonds The Bonds Debt
Year Principal Interest Principal Interest Principal Interest Service
200l $ 185,000 $ 40,805 $ 350,000 $ 395,413 $ 75,000 $ $
2002 190,000 32,647 365,000 378,555 I05,000
2003 205,000 23,906 380,000 360,595 110,000
2004 135,000 16,308 405,000 341,520 115,000
2005 140,000 10,085 425,000 320,860 120,000
2006 150,000 3,450 445,000 298 395 125,000
2007 0 0 465,000 274 210 130,000
2008 0 0 495,000 248 722 135,000
2009 0 0 520,000 221 168 140,000
2010 0 0 555,000 191 952 45,000
2011 0 0 590,000 160 135 55,000
2012 0. 0 540,000 126 160 60,000
2013 0 0 280,000 97 505 70,000
2014 0 0 300,000 83,505 75,000
2015 0 0 300,000 68,355 85,000
2016 0 0 325,000 53,055 90,000
2017 0 0 340,000 36,318 200,000
2018 0 0 355,000 18,637 210,000
2019 0 0 0 0 220,000
2020 0 0 0 0 235,000
Total $ 1,005,000 $ 127,181 $ 7,435,000 $ 3,675,060 $ 3,100,000 $ $
CITY PROFILE
was incorporated in 1901 and operates as Home Rule Charter City with a Mayor Council form of
government. The Council is comprised of nine members, elected by district by the citizens of the City, each
four-year term. The Council Members are part-time elected officials who exercise the legislative powers
City and determine matters of policy. The Mayor, a full-time elected official, is the chief executive officer
City. The Officers and department directors are appointed by the Mayor with Council approval.
provides a full range of municipal services including fire and police protection, parks an~t recreation
facilities/activities, streets, planning, zoning and general administrative services. The City operates water, sewer
stormwater utility systems. Currently, there are 342 full-time employees of the City.
Personnel
Horton, Mayor: Ms. Horton began her second term as Mayor of the City in 1998. Before her election as
she served for six years on the Bremerton City Council. She is the past Chair and current Board Member
Kitsap Regional Planning Council, and a board member of Kitsap Transit, Kitsap County Cen-Com and the
Bremerton-Kitsap CoUnty Health Department. Ms. Horton is a graduate of the University of Washington and has
resident of the City since 1974.
Hanna, City Treasurer: Mr. Hanna has been the Treasurer of the City of Bremerton since 1986. Before
the City, he was Treasurer of the City of Centralia, Washington. Mr. Hanna received his Bachelor's
Accounting from Western Washington University in 1974 and a Masters of Business Administration
Finance from University of Puget Sound in 1983. Mr. Hanna is a member of the Washington Finance
Association, Washington Municipal Treasurers Association and Puget Sound Finance Officers
Association.
Preliminary, subject to change.
13
Labor Relations
The City has entered into written agreements with each of the bargaining groups set forth below. These
agreements contain provisions on such matters as vacations, sick leave, medical and dental insurance, salaries,
working conditions and grievance procedures.
Employees of the City represented by bargaining units are as follows:
Union Membership Contract Period Expiration Date
Teamsters Local 589 130 3 yr. 12/31/00'
Patrolman's Association 53 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.
GENERAL AND ECONOMIC INFORMATION
The City of Bremerton, is located on Puget Sound, approximately 15 miles west of Seattle and 35 miles north of
Tacoma. The largest city in Kitsap County (the "County"), Bremerton was incorporated in 1901 and has an
estimated 2000 population of 36,160 Kitsap County, covering 393 square miles of land, also includes the
following other incorporated areas: Bainbridge Island (2000 population 20,150), Port Orchard (2000 population
7,270) and Poulsbo (2000 population 6,500).
Military Presence
The economy of the City is closely tied to the United States Navy. In 1999, the estimated armed forces
population in Kitsap County was 10,809. The Puget Sound Naval Shipyard in Bremerton ("PSNS") is the largest
Naval shipyard on the Pacific Coast and is the only West Coast shipyard capable of working on nuclear ships.
With 7,711 civilian employees, 49 military personnel (excluding ship personnel), and approximately 12,000
military family members, the shipyard is also the only facility capable of decommissioning and recycling nuclear
submarines which are being disassembled in accordance with Strategic Arms Limitations Treaties. PSNS is the
largest naval employer in the State. The shipyard itself encompasses 344 acres of land, 382 buildings and nine
permanent piers totaling 12,310 feet of deep water space. The economic impact of PSNS locally is approximately
$700 million per year.
The Fleet and Industrial Supply Center is another local Naval facility in the City, with 619 civilian employees and
20 military personnel. Naval Station Bremerton employs 936 civilians and 232 military perso.nnel.
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 ~vhich
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.
14
Bremerton National Airport is the largest airport in the County, with a 6,200-foot runway and full instrumentation
and lighting systems. The airport can handle all general aviation aircraft and most transport and military planes.
Charter passenger and air freight services are available to SeaTac Airport, the major international airport in the
Puget Sound area. The Bremerton Airport has recently undergone improvements.
Health care needs are met by several facilities in the Bremerton area including the Naval Hospital - Bremerton
with 355 civilian and 729 military personnel serving approximately 80,000 military, family members and retirees
in the area. The hospital is undergoing a $24 million expansion project, due for completion in late Spring 2001.
Harrison Hospital in Bremerton has 1,162 employees and 297 beds. A Radiation Oncology Center was recently
completed at Harrison with 14,000 square feet of space. A number of nursing homes and retirement complexes
are also located in Bremerton.
Olympic College is a two-year public community college located in Bremerton, with an enrollment of
approximately 4,310 (full-time equivalents). The college has 290 full-time permanent employees, but can employ
up to 600 employees, including part-time student workers. The college offers associate of arts degrees in four
fields, as well as adult education and non-credit courses, and began a four-year degree program (called "2-Plus-
2") in 1994. The 2-Plus-2 degree program is associated with the University of Washington, Tacoma branch. A
new library is being constructed at the college.
See the table on page 18 of this Official Statement for a list of employers in Kitsap County with 200 or more
employees.
In 1999, the average new home price in the City was $136,048, which is approximately 12% higher than prices in
1991. The residential subdivision, Illahee North Division 2, added 22 new single-family residential lots to the
City's total. A survey conducted in September of 2000 indicated an average rent in the City of $569 per month,
and a 6.4% vacancy rate. The downtown office vacancy rate, excluding buildings converted to office use for the
U.S. Navy, was 8.65% in 1999.
New Developments
Among the projects recently completed or proposed for development in Bremerton are the following:
· A multi-modal transportation facility is now under construction on the City's downtown waterfront. The
project includes foot ferries that serve Bremerton, the Bremerton Transportation Center, and highway
improvements to Bremerton. The cost of the publicly funded projects is estimated at $21 million. The new
Bremerton Transportation Center which is under construction will serve ferry, bus, bicycle and pedestrian
commuters and travelers on their way to Seattle and Port Orchard. Expanded ferry service with higher-speed
foot passenger ferry service between Bremerton and Seattle began service in 1998.
· Pope Resources, a timber and land management company based in Poulsbo, and its subsidiary, Olympic
Resource Management, have obtained land within the City that is planned for development as a 61~acre
business park and 209 acres for 450 new homes. The project has received permit approval from the City and
construction is under way.
· Olympic View Business Park is being developed by the Port for business and technology-oriented businesses.
It lies adjacent to a broad bandwith feber optics line and the Bremerton National Airport. Construction of the
30-acre planned business park, began in the summer of 2000.
· Port Blakely Communities has plans to develop a mixed use project on land west of Kitsap Lake. Located
just outside of the current City limits, this area would likely be annexed to the city.. The project includes
approximately 900 housing units with parking and other amenities to attract and be suitable for home-based
businesses. A business park with 2.225 million square feet is also included in the project plans. As many as
9,000 jobs could be associated with the project, which is currently in the planning stage.
· The Bremerton Gateway Project is a $40 million multi-year traffic modiciation under construction for the
City's main entry corridor. Included in the project are beautification, traffic improvement, street widening
and related projects designed to improve the first impression upon entering the City.
· The Northwest Corporate Campus is a business park and residential community planned for development on
244 privately owned acres near the City, that are zoned for industrial and residential use. The project plans
include a building for light industrial use on 188 acres as well as approximately 200 middle-income
residential units on 56 acres.
Following are economic indicators of the City and the County.
15
KITSAP COUNTY POPULATION~
City of Other Kitsap County Kitsap County
Year Breme~on Incorporated Unincorporated Total
2000 36,160 33,920 160,120 230,200
1999 36,88~ 33,540 159,890 229,700
1998 37,260 32,615 159,125 229,000
1997 38,600 32,060 158,740 229,400
1996 38,496 31,210 155,120 224,700
1995 39,610 29,915 151,075 220,600
1994 35,920 28,625 148,655 213,200
1993 36,380 28,160 145,460 210,000
1992 38,990 27,405 139,205 205,600
1991 37,040 26,639 132,821 196,500
1990 38,142 12,913 138,676 189,731
TAXABLE RETAIL SALES2
City of
Year Kitsap County Breme~on
20003 $ 1,137,049,303 $ 281,554,539
1999 2,309,819,810 562,364,764
1998 2,064,021,512 506,875,439
1997 1,958,346,681 498,779,418
1996 1,836,198,934 477,467,218
1995 1,768,304,057 451,277,414
SEATTLE-BREMERTON FERRY TRAFFIC STATISTICS4
Number of Number of
Year Vehicles Passengers
1999 731,969 2,488,466
1998 714,903 2,211,641
1997 756,796 2,047,014
1996 731,926 1,863,596
1995 751~266 1,820,433.
KITSAP COUNTY AND WASHINGTON STATE
LABOR FORCE AND AVERAGE ANNUAL UNEMPLOYMENT5
Resident Civilian Average Annual Total
Year Labor Force Unemployment Employment Kitsap County (%) Washington (%)
1999 93,300 4,700 88,600 5.0 4.7
1998 91,300 4,800 86,500 5.3 '4.8
1997 93,000 5,100 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 o£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 forecast. All fugures are presented in current
dollars.
16
7'7
MAJOR EMPLOYERS IN KITSAP COUNTY]
(As of October 2000)
.: 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 1,084
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 Bon Marche 204
Group Health Cooperative 200
Courtesy Chevrolet/Ford/Mitsubishi 200
Source: Kitsap County Economic Development Council as of October 2000.
2
Located partially or totally within the City of Bremerton.
3
Source: Washington State Employment Security, LMEA.
17
PRESERVATION OF TAX EXEMPTION
The City has covenanted, in the Ordinance, it will not take or permit to be taken on its behalf any action that
would adversely affect the exclusior~ of the interest on the Bonds from gross income for purposes of federal
income taxation, and will take or require to be taken such acts as may be permitted by Washington law and as
may from time to time be required under applicable law to continue the exclusion of the interest on the Bonds
from gross income for purposes of federal income taxation. The City certifies that it has not been notified of any
listing or proposed listing by the Intemal Revenue Service to the effect that it is a bond issuer whose arbitrage
certifications may not be relied upon.
CONFLICTS OF INTEREST
Some or all of the fees of the Underwriter and Bond Counsel are contingent upon the issuance and sale of the
Bonds. Furthermore, Bond Counsel from time to time serves as counsel to the Underwriter with respect to issuers
other than the City and transactions other than the issuance of the Bonds. None of the council members or other
officers of the City has interests in the issuance of the Bonds that are prohibited by applicable law.
TAX EXEMPTION
In the opinion of Gottlieb, Fisher 8: Andrews, PLLC, Bond Counsel, as of the date of issue of the Bonds (the
"Date of Issue"), and subject to certain assumptions described in the next paragraph: the Bonds are not "private
activity bonds," as defined by the Code; the Bonds 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 Bonds is excluded from gross income for federal income tax purposes under existing federal law; and such
interest is not an item of tax preference for purposes of determining the alternative minimum tax on individuals
and corporations under existing federal law. However, under existing federal law interest on the Bonds received
by certain corporations is to be taken into account in the computation of adjusted current earnings for purposes of
calculating the alternative minimum tax applicable to such corporations; such interest received by certain S
corporations may be subject to tax; and such interest received by foreign corporations with United States
branches may be subject to a foreign branch profits tax. Bond Counsel expresses no opinion regarding any other
federal tax consequences of receipt of interest on the Bonds. Potential purchasers of the Bonds should consult
with their tax advisors as to all possible tax consequences of ownership of the Bonds. See also, "OTHEF~ TAX
CONSEQUENCES," herein.
The Code contains certain requirements which must be satisfied subsequent to the issuance of the Bonds in order
to maintain the tax treatment described above, including requirements relating to the application of the proceeds
of the Bonds, use of facilities which are financed with such proceeds, limitations on income derived from the
investment of gross proceeds of the Bonds, and rebate to the United States Treasury of certain of such investment
income on such gross proceeds. The City has covenanted to comply with these requirements;' and the opinion of
Bond Counsel described in the preceding paragraph assumes such compliance. However, Bond Counsel has not
undertaken and shall not undertake to monitor compliance by the City with such requirements and failure of the
City to comply with such requirements could cause the interest on the Bonds to be included in gross income for
federal income tax purposes, and could be treated as an item of tax preference for purpOSes of the alternative
minimum tax on individuals and corporations, and could result in a loss of the partial interest expense deduction
available for qualified tax-exempt obligati'ons, in each case, retroactive to the Date of Issue.
OTHER TAX CONSEQUENCES
Under current federal la,v:
1. Corporate Alternative Minimum Tax. The interest on tax-exempt obligations received by a
corporation is taken into account in the computation of the alternative minimum tax applicable to
corporations (as defined for federal income tax purposes). Under current federal law, the alternative
minimum taxable income of such a corporation (other than an S corporation, a regulated investrnent
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.
18
Interest on tax-exempt obligations, whenever issued or acquired, including interest on the Bonds, is
included in the computation of "adjusted current earnings."
For taxable years beginning after December 31, 1997, the corporate alternative minimum tax is repealed
for small 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 Bonds, received by an S corporation (a corporation treated as a
partnership for most federal tax purposes) that has "subchapter C earnings and profits" at the close of its
taxable year may be subject to federal income tax at the highest rate 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 Bonds 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 Bonds.
4. Reduction of Loss Deduction for Property and Casualty Insurance Companies. Interest on tax-
exempt obligations, including the Bonds, received by property and casualty insurance companies, will
reduce tax deductions for loss reserves otherwise available to such companies by an amount equal to 15
percent of such tax-exempt interest received during the taxable year.
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 Bonds, is included in the calculation of
"modified adjusted gross income" of recipients of the social security or tier I 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 Bonds or in any manner questioning the proceedings and authority under which the
Bonds are issued or affecting the ability of the City to pay the principal of or the interest on the Bonds.
APPROVAL OF BOND COUNSEL
Legal matters incident to the authorization, issuance and sale of Bonds by the City are subject to the approving
legal opinion of Gottlieb, Fisher & Andrews, PLLC, Bond Counsel. A copy of the opinion of Bond Counsel will
be delivered with the Bonds.
CONTINUING DISCLOSURE
The City has undertaken, for the benefit of the Owners and Beneficial Owners of the Bonds required by
subsection (b)(5)(i) of the Rule 15c2-12 (the "Rule") of the United States Securities and Exchange Commission
(the "SEC"), to provide or cause to be provided to each then existing nationally recognized municipal securities
information repository designated by the SEC ("NRMSIR") and to the State Information Depository ("SID"), if
one is created, the following annual financial information and operating data (collectively, the "Annual Financial
Information") for each prior fiscal year, commencing with the fiscal year ending December 31,2001, on or before
the last day of the ninth month following the end of such prior fiscal year:
(a)' annual financial statements prepared in accordance with the generally accepted accounting principles
applicable to governmental units, as such principles may be changed from time to time and as permitted by
State law; which statements will not be audited, except that if and when audited financial statements are
otherwise prepared and available to the City, they will be provided (the "Annual Financial Statements");
19
(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 Bonds,
if material:
1. Principal and interest payment delinquencies;
2. Non-payment related defaults;
3. Unscheduled draws on debt service reserves reflecting financial difficulties;
4. Unscheduled draws on credit enhancements reflecting financial difficulties;
5. Substitution of credit or liquidity providers, or their failure to perform;
6. Adverse tax opinions or events affecting the tax-exempt status of the Bonds;
7. Modifications to fights of the Owners of the Bonds;
8. Optional redemptions of the Bonds;
9. Defeasances of the Bonds;
10. Release, substitution or sale of property securing repayment of the Bonds; and
11. Rating changes.
The City also agrees to provide or cause to be provided, in a timely manner, to the SID, if one is created, and to
either the MSRB or each then existing NRMSIR, notice of its failure to provide the Annual Financial Information
for the prior fiscal year on or before the last day of the seventh month following the end of such prior fiscal year.
After the issuance of the Bonds, so long as the interests of the Owners or Beneficial Owners of the Bonds will not
be materially impaired thereby, as determined by a party unaffiliated with the City (including, without limitation,
a trustee for the Owners, nationally recognized bond counsel or other counsel familiar with the federal securities
law), or pursuant to a favorable "no-action letter" issued by the SEC, this continuing disclosure undertaking may
only be amended in connection with any change in legal requirements, change in law, or change in the identity,
nature or status of the obligated person, or type of business conducted, and only in such a manner that the
continuing disclosure undertaking of the City, as so amended, would have complied with the requirements of the
Rule at the time of the primary offering, after taking into account any amendments or interpretations of the Rule,
as well as any change in circumstances.
The City's obligations to provide Annual Financial Information and notices of certain events shall terminate
without amendment upon the defeasance, prior redemption or payment in full of all of the then outstanding
Bonds. This continuing disclosure undertaking or any provision hereof, shall be null and void if the City (i)
obtains an opinion of nationally recognized bond counsel or other counsel familiar with the ~'ederal securities laws
to the effect that those portions of the Rule which require this continuing disclosure undertaking or any such
provision are invalid, have been repealed retroactively or otherwise do not apply to the Bonds; and (ii) notifies
and provides the SID, if any, and either the MSRB or each then existing NRMSIR with copies of such opinion.
The right of each Owner or Beneficial Owner of Bonds to enforce the provisions of this continuing disclosure
undertaking shall be limited to the right to obtain specific enforcement of the City's obligations in this continuing
disclosure undertaking and any failure by the City to comply with the provisions of this continuing disclosure
undertaking shall not be a default with respect to the Bonds under the Ordinance.
RATING
The City has applied for a rating from Moody's Investors Service on the Bonds. The rating, when assigned,
reflects only the vie~v of the rating agency and an interpretation of such rating may be obtained only from the
rating agency furnishing the same. There is no assurance that such rating will continue for any given period of
20
time or that it will not be revised downward or withdrawn entirely by the rating agency, if, in the judgment of
such agency, circumstances so warrant. Any such revision or withdrawal of either such rating may have an
adverse effect on the market price of the Bonds.
UNDERWRITING
The Underwriter has agreed, subject to certain conditions, to purchase all of the Bonds, if any are purchased, at a
price of % of the par value of the Bonds, plus accrued interest from the dated date to the settlement date.
The Bonds will be reoffered at an average price of % of the par value of the Bonds, resulting in a
underwriting spread of $ per $1,000 of principal amount of the Bonds. After the initial public offering, the
public offering prices may be varied from time to time. ·
CONCLUDING STATEMENT
All estimates, assumptions, statistical information and other statements contained herein, while taken from
sources considered reliable; are not guaranteed by the City or the Underwriter. So far as any statement herein
includes matters of opinion, or estimates of future expenses and income, whether or not expressly so stated, they
are intended merely as such and not as representations of fact.
The information contained herein should not be construed as representing all conditions affecting the City or the
Bonds. Additional information may be obtained directly from the City or the Underwriter.
The foregoing statements relating to the Ordinance and other documents are in all respects subject to and
qualified in their entirety by provisions of such documents.
This Official Statement, starting with the cover page and 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.
21
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APPENDIX A
FORM OF LEGAL OPINION
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APPENDIX B
DTC AND BOOK-ENTRY SYSTEM
DTC AND BOOK ENTRY SYSTEM
Portions of the information relating to the Book Entry System under this heading have been furnished by DTC,
but have not been independently verified by the Underwriter or the City. Neither the Underwriter nor the City
makes any representation whatsoever as to the accuracy, adequacy or completeness of such information.
DTC is a limited-purpose trust company organized under the New York Banking Law, a "banking organization"
within the meaning of the New York Banking Law, a member of the Federal Reserve System, a "clearing
corporation" within the meaning of the New York Uniform Commercial Code, and a "clearing agency" registered
pursuant to the provisions of Section 17A of the Securities Exchange Act of 1934, as amended. DTC holds
securities that its participants ("Participants") deposit with DTC. DTC also facilitates the settlement among
Participants of securities transactions, such as transfers and pledges, in deposited securities through electronic
computerized book-entry changes in Participants' accounts, thereby eliminating the need for physical movement
of securities certificates. Direct Participants include securities brokers and dealers, banks, trust companies,
clearing corporations, and certain other organizations. Access to the DTC system is also available to others such
as securities brokers and dealers, banks, and trust companies that clear through or maintain a custodial
relationship with a Direct Participant, either directly or indirectly ("Indirect Participants"). The Rules applicable
to DTC and its Participants are on file with the Securities and Exchange Commission.
In September 1999, the Securities and Exchange Commission approved the integration of DTC and National
Securities Clearing Corporation as separate subsidiaries of the Depository Trust and Clearing Corporation
("DTCC"). Through the integration, former owners of DTC (consisting of a number of its Direct Participants, the
New York Stock Exchange, Inc., the American Stock Exchange LLC, and the National Association of Securities
Dealers, Inc.) became part owners of DTCC.
Purchases of Bonds under the DTC system must be made by or through Direct Participants, which will receive a
credit for the Bonds on DTC's records. The ownership interest of each actual purchaser of each Bond
("beneficial owner") is in turn to be recorded on the Direct and Indirect Participants' records. Beneficial owners
will not receive written confirmation from DTC of their purchase, 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 Bonds 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 Bonds, except in the event that use of the book-entry system for the Bonds is discontinued.
To facilitate subsequent transfers, all Bonds deposited by Participants with DTC are registered in the name of
DTC's partnership nominee, Cede & Co. The deposit of Bonds with DTC and their registration in the name of
Cede & Co. effect no change in beneficial ownership. DTC has no knowledge of the actual beneficial owners of
the Bonds; DTC's records reflect only the identity of the Direct Participants to whose accounts such Bonds are
credited, which may or may not be the beneficial owners. The 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 BONDS, AS NOMINEE OF DTC,
REFERENCES HEREIN TO THE BONDOWNERS OR REGISTERED OWNERS OF THE BONDS SHALL
MEAN CEDE & CO. AND SHALL NOT MEAN THE BENEFICIAL OWNERS OF THE BONDS.
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 Bonds 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 Bonds. 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 Bonds 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 Bond 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 Bond 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 Bonds at any time
by giving reasonable notice to City or the Bond Registrar. Under such circumstances, in the event that a
successor securities depository is not obtained, Bond certificates are required to be printed and delivered.
The beneficial owner of each Bond, upon registration of certificates held in the beneficial owner's name,
will become the Registered Owner of that Bond.
The City may decide to discontinue use of the system of book-entry transfers through DTC (or a
successor securities depository). In that event, Bond certificates will be printed and delivered.
The City and the Bond 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 BOND 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 BONDS. 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 BONDS 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
Bond or Bonds and will not be required to act in concert with other beneficial owners of the Bonds held
by DTC. DTC will forward to the beneficial owners any notices received in respect of their Bonds and
will act in accordance with their instructions with respect thereto.