HomeMy WebLinkAbout01/19/00 AGENDA CITY COUNCIL AGENDA
JANUARY 19, 2000
1. CITY COUNCIL STUDY SESSION: 5:00 - 5:30 P.M.
A. General Council Business
2. CALL TO ORDER: 5:30 P.M.
A. Pledge of Allegiance
B. Invocation
3. CONSENT AGENDA
Items listed below have been distributed to Council members in advance for study
and will be enacted by one motion. If separate discussion is desired on an item, it
may be removed from the Consent Agenda and placed on the Regular Agenda at
the request of a Council member.
A. Minutes of Meeting - December 29, 1999 #AB00-011
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 Allocating the City's FY 2000 #AB00-012 ~
Hotel & Motel Tax Receipts
10. ORDINANCES
A. Ordinance No. 4692 (Second Reading) Authorizing the #AB00-006 ~
Issue of a $1,250,000 Tax Anticipation Note, and
Accepting the Purchase Offer of SeaFirst Bank
B. Ordinance No. 4693 (Second Reading) on Development #AB00-010 ~ '~
Agreement for Northwest Corporate Campus (PL99-0073)
Applicant: Ron Sciepko~ ~o[o~~h'~*'~ ~ CeS~t~n'c¢ Nc..~.7'35
C. Ordinance (First Reading) Establishing a Special Election #AB00-007 ~ ~
Date of May 16, 2000 for a Parks & Recreation Bond
11. ADJOURNMENT OF MEETING
AGENDA BILL
BREMERTON CITY COUNCIL
1. SUBJECT: FOR AGENDA OF: JANUARY ]:9, 2000
ORIGINATING DEPT: C I TY COUNC I L
MINUTES OF MEETING - DECEHBER 2~), 1 ~)~)9 ORIGINATOR: CAROL ARENDS ? PRES I DENT
DATE SUBMITTED: JANUARY 10, 2000
2. CLEARANCES: (comment on back if necessary) 3. EXHIBITS:
ENDORSEMENT INFORMATION APPROVED BY COUNCIL PRESIDENT FOR SUBMITTAL:
MAYOR: COUNCIL PRESIDENT:
4. SUMMARY STATEMENT AND REQUIREMENT FOR COUNCIL ACTION:
8. RECOMMENDATION'
9. RESPONSIBLE OFFICIAL:
ENFORCEMENT OFFICIAL:
EXPIRATION DATE:
REVIEW DATE:
10. NOTICE OF ACTION:
PULLED TABLED APPROVED DISAPPROVED AIVI~D __.~
COUNCIL DIRECTIVE: DATE:
11. AGENDA BILL NO: OO-- O ~ ~
TAPE #1674 UNAPPROVED DRAFT
CITY COUNCIL MEETING MINUTES
December 29, 1999
The weekly meeting of the City Council of the City of Bremerton was called to order in the City
Council Chambers, 239 4~ Street, Bremerton, Washington, Wednesday, December 29, 1999, at 5:30
P.M., with Council President Mike Shepherd presiding. Council members present were Carlos
Montgomery, Carol Arends, David Farr, Lon Overson, John Law, Cecil McConnell, and Wayne Olsen.
Council member Jim Reed was absent. City Attorney Glenna Malanca, Deputy City Clerk Paula
Johnston, and Legislative Assistant Lori Smith were also present.
The meeting opened with the Pledge of Allegiance led by Council President Shepherd, followed by
the invocation, given by Reverend Ron Anderson of Manette Community Church.
Council President Shepherd made the following announcements:
(1) City Council held a Pre-Council Session in the Council Conference Room to discuss general
council business; and
(2) Agenda Item 10(A) Second Reading of Ordinance No. 4690 to Establish a Special Election
Date of March 14. 2000 for a Parks & Recreation Bond was pulled from the Agenda tonight. A
Study Session for further discussion on this issue will be held immediately following the
Council meeting on January 5, 2000, in the Council Chambers.
CONSENT AGENDA
A. lAC Grant Agreement for Evergreen Phase [! (Park Development) #AB99-286
#0095 M/S/C/U (McConnell/Montgomery) Motion to approve Consent Agenda as presented.
CLAIMS/CHECK REGISTERS
Vouchers audited and certified by the auditing officer as required by RCW 42.24.080, and those
expense reimbursement claims certified as required by RCW 42.24.090 have been recorded on a
listing that had been made available to the Council.
#0118 M/S/C/U (Montgomery/Arends) On December 29, 1999, the Council does approve for payment
those vouchers included and further described as follows: 237395 through 237550, and EFT 5748 in
the amount of $385,6i 0.86.
MAYOR'S REPORT
President Shepherd, as Mayor Pro Tempore, invited Lon Overson to the podium, where John Law
presented him with a plaque, "In Recognition of his Significant Contribution to the City of Bremerton
as City Council Member for District CHI for 14 Years, and Many Years of Service to the Audit
Committee, from January 1, 1986 to December 31, 1999". Carlos Montgomery was then invited to
the podium, where Carol Arends presented him with a plaque, "In Recognition of his Significant
Contribution to the City of Bremerton as City Council Member for District #8 from September 21, 1994
to December 31, 1999; and as Council Vice-President from January 7, 1998.
President She.~herd concluded the "MAYOR'S REPORT" by introducing members of The Kitsap
Pines Chorus of the Sweet Adeline's, to perform in the spirit of the holiday season!
COUNCIL MEMBER REPORTS
Carol Arends reiterated her thanks to Mr. Montgomery and Mr. Overson for their encouragement
and assistance to her when she was a new Council member, and for their many years of service.
TAPE #1674
City Council Reg. Mtg. Minutes
December 29, 1999
Page 2 of 3
David Fart expressed his thanks and appreciation to Mr. Montgomery and Mr. Overson. On a sad
note, he offered his condolences to the family and fdends of Mr. Leo Westermann who recently
passed away. He described Mr. Westermann as a true gentleman, who was very active in the
community, and stated he would be missed.
Lon Overson assured the Council members that they would be better at dealing with the budget in
his absence than they were giving themselves credit for. He expressed his gratitude to his wife Ellie
for supporting him through his years as a Council member.
John Law observed that he would particularly miss the are-you-sure "look" sometimes given to him
by Mr. Overson during the exchange of ideas. Regarding District 3 business, he reported an
abandoned truck at the parking lot of the old laundry mat at E. 11t~' Mrs. Mae Davis, owner of the
property, has been asked to move the vehicle, which also has a load of garbage, which was identified
as belonging to Mr. Greg Jacobs, in the back of the pick-up.
Cecil McConnell discussed various experiences with Mr. Montgomery and Mr. Overson during their
years as Council members, thanked them for their service, and stated they would be missed.
Wayne Olsen thanked Mr. Montgomery in particular for taking him on a tour during his first days as a
Council member, and for always giving a "helping hand" if there were any questions. He appreciated
that Mr. Montgomery would "follow through" on the issues and not be afraid to ask questions. He
also appreciated Mr. Overson for being the "budget guru" through the years and for his guidance.
President Shepherd extended his heartfelt admiration to both Mr. Montgomery and Mr. Overson.
He acknowledged the incredible time commitment it takes to be on the City Council, and the never-
ending learning that takes place to find solutions to the City's problems. He congratulated them both.
He announced this would be his last meeting as City Council President, and stated he learned a lot
during the last year, and was proud to serve with his fellow Council members.
LEGISLATIVE REPORT
A response from the Legal Department was provided to Larry Dickerson, who asked for an update
on the City's S.O.A.P. (Stay Out of Areas of Prostitution) Ordinance. It was announced that a draft
proposal has been completed and reviewed, and will be brought before the Council in early February.
A response was also provided to John Becker, who asked 1 ) how much was the cost of an election?
According to the City Treasurer, costs will vary depending on the number of ballot issues that would
share the election costs. Based on prior elections, the cost is estimated to be between $8,000 and
$12,000; and 2) how much more bonding can the City take before the bond rating is affected? Statute
limits the City's authority to issue voted bonds at 2.5% of the City's assessed valuation, which is
currently $1.4 billion. Since the City's statutory capacity to issue voted General Obligation bonds is
$35 million, of which only $1 million is presently being used, the Park bond issue will not cause the
City's bond rating to be downgraded.
PUBLIC RECOGNITION
Elizabeth Buell, Ruth Natividad, and Gordy Byrd thanked Mr. Montgomery and Mr. Overson for
their service to the City, and stated they would be missed.
Erica Delma reported the "Kitsap Even Start/Families That Work" program helps people in need by
promoting literacy, self-sufficiency, and positive parenting. Interested volunteers may call 479-8108.
TAPE #1674
City Council Reg. Mtg. Minutes
December 29, 1999
Page 3 of 3
Paul Drnjevic praised the Council for waiting to get valid, factual information before proceeding with
the purchase of the KPS Building (400 Warren Avenue). He stated that the City Clerk responded by
e-mail to additional questions he had regarding the purchase of the KPS Building, but he did not feel
the response fully addressed his concerns, or point out where he could find any available studies on
the subject. He also questioned why the Parks Bond issue was dropped from the Agenda tonight.
10B - ORDINANCE NO. 4691 (SECOND READING) VACATING PORTIONS OF WASHINGTON.
AVENUE. FIRST STREET, AND AN ALLEY IN ASSOCIATION WITH THE BREMERTON
TRANSPORTATION CENTER PROJECT, #AB99-284
The first reading of this ordinance was presented at the Council meeting on December 22, 1999.
Gordy Byrd asked for a definition of "street vacation"; and Elizabeth Buell asked the location of the
alley. Randy Wit't, City Engineer, responded that when a street is dedicated to the City, it is
accepted as an easement called a right-of-way. When the City gives up their "rights" to that property,
the process followed is called a "vacation". The location of the alley was pointed out on a diagram,
which is in the middle of the ferry terminal area. The area has never been vacated.
#1590 M/S/C/U (Montgomery/Farr) Motion to approve Ordinance No. 4691 on second reading.
With no further business meeting the last meeting of this century adjourned at 6:30 P.M.
PAULA JOHNSTON, Deputy City Clerk
MIKE SHEPHERD, Council President
City of Bremerton
P J/MS/Is
C: Normal Distribution
File
AGENDA BILL
BREMERTON CITY COUNCIL
1. SUBJECT: BUDGET ADJUSTMENT FOR AGENDA OF: Jan~, 2000
Allocating the City's FY 2000 Hotel Motel Tax Receipts. ORIGINATING DEPT: ~! Treasurer
ORIGINATe: ~ Rich Hanna
DATE SUBMITTED: "Dec. 21, 1999
2. CLEARANCES: Comment of back if necessary) 3. EXHIBITS:
Budget Adjustment Request No. 00-2
Dir. Admin. Serv. ~,,~N~,~-- ~--~:~-~- 7
Fiscal & Budget Comm.
ENDORSEMENTS ~ INFORMATION APPROVED BY COUNCIL PRESIDENT FOR SUBMITTAL:
4. SUMMARY STATEMENT AND REQUIREMENT FOR COUNCIL ACTION:
This adjustment will authorize expenditure of the City's Hotel - Motel Tax revenues to several toudsm supporting
organizations and activities as directed by Council memo.
8. RECOMMENDATION:
Motion to approve Budget Adjustment Request No. 00-2) 4X/~ ~~,
9. RESPONSIBLE OFFICIAL: Treasurer
ENFORCEMENT OFFICIAL: Mayor
EXPIRATION DATE: 12/31/00
REVIEW DATE: N/A
10. NOTICE OF ACTION
PULLED TABLED APPROVED DISAPPROVED ~ AMENDE(~~~
COUNCIL DIRECTIVE:
11. AGENDA BILL NO: 00-- O I ~
5'
2. CLEARANCE COMMENTS:
5. IMPACT ON NON-PASSAGE:
Administration and staff will lack direction for expenditure of Hotel Motel Tax revenues. Therefore, no expenditures
will be made.
6. IMPACT ON STAFFING, BUDGETS, FACILITIES, EQUIPMENT OR OTHER RESOURCES:
As documented in the attached Budget Adjustment Request and supporting materials.
7. RESEARCH SOURCES:
City Council Memo and current budget.
CITY OF BREMERTON
BUDGET ADJUSTMENT REQUEST
Requesting Department: CIVIC IMPROVEMENT Adjustment Number: 00-2
Approval Authority Required:
r-]Treasurer r-]May°r F- Fiscal & Budget [-'-X~Council
SOURCE OF FUNDS: USE OF FUNDS:
Description Amount Description Amount
CURRENT APPROPRIATIONS 180,000 DISTRIBUTION PER ATTACHED 180,000
NARRATIVE:
This adjustment will allocate the City's Hotel / Motel Tax revenue to vadous toudsm supporting
organizations and activities as indicated on the attached memo.
Department Head Signature Date Director Signature Date
Treasurer Comments:
~"~Recommended [---'] Not Recommended -'-- ure~~~
Treasurer's Signat Date
Mayor Comments:
..~. Recommended r-"-] Not Recommended
[---"] Approved ~ Denied '~. ?-~.,~.._
Mayors Signature Datb
Fiscal & Budget Committee Comments:
[-'--] Approved ~ Denied
Fiscal & Budget Committee Signature Date
239 4th Street · Bremerton, Washington 98337 · (360) 478-5280 · FAX (360) 478-5251
December 15, 1999
Mr. Rich Hanna, City Treasurer
City of Bremerton
239 4~ Street
· Bremerton, WA 98337
Dear,.:Mr~ Hanna: -
· The City Council has, reached a consensus on the, recommended allocations of
lodging tax funds for the year 2000.
The recommended allocations are:
Admiral Theater $ 90,000
Bremerton Area Chamber of Commerce $ 25,000
Bremerton Naval Museum $ 8,000
Bremerton Main Street Association $ 15,000
Convention Center $ 2,000
Kitsap Visitors & Convention Bureau $ 25,000
Pendergast Field Lights $ 15.000
TOTAL $180,000
Council President
DISTRICT 1 DISTRICT 2 DISTRICT 3 DISTRICT 4
WAYNE OLSEN CECIL McCONNELL JOHN E. LAW LON OVERSON
DISTRICT 5 DISTRICT 6 DISTRICT 7 DISTRICT 8 DISTRICT 9
MIKE SHEPHERD DAVID D. FARR CAROL ARENDS CARLOS MONTGOMERY JIM REED
· Equal Opportunity_Employer ~r
AGENDA BILL
BREMERTON CITY COUNCIL
--J;;;::&;-i ~2, 2900
1. SUBJECT: ORDINANCE NO. ~ ~ ~ FOR AGENDA OF: Janua.~ 19, 2000 ~'~_
~$ '~? ~~}~ ORIGINATING DEPT: Treasurer~
AUTHORIZING THE ISSUE O 000 T~
ORIGINATOR: _
Ri~ Ha~
ANTICIPATION NOTE AND ACCEPTING THE DATE SUBMI~ED: Janua~ 4, 2000
PURCHASE OFFER OF S~FIRST BANK
2. CLEA~NCES: Comment of back if ne~) 3. EXHIBITS:
Dir. Admin. Se~ic~s ~~
~.
~is~l and BHd0et Comm..~2~ ~ "FI~T ~D~G" OF ~S O~ANCE H~ JA~ARY 12, 2~0
~ ~ ' ~ * ~ AVAI~LE ~ ~E (1) CO~CIL AGE~A PAC~T OF
~. 8H~R~ 8T~Tfi~fi~T ~D R~HIRfi~fi~T FOR ~OH~l~ ~TIO~'
As indicted in the a~ached documonts, the Gity's General Fund will o~rate in a doficit ~sh position through mo~
of the yoar without some fo~ of ~sh flow financing. Analysis indi~tes that i~uance of a Tax Anticipation ~ote, or
TA~ is the mo~ economical way of financin~ this ~sh flow nee~.
8. RECOMMENDATION:
";.b;- "' ::z"-:..-.3 ..... "'_'th:~:-:;,~ ',' ' '
Motion to pass on second reading Ordinance No. <~J ;~ authorizing the issue of a Tax Anticipation Note and
accepting the purchase offerof E~C cC- ~:'~e~c~_ 5¢C~c;.~-~e_5 /__Lc (.~:~--me~¢'¥ ~coc~ ct~
9, RESPONSIBLE OFFICIAL: Treasurer
ENFORCEMENT OFFICIAL: Mayor
EXPIRATION DATE: January 31,2001
REVIEW DATE: N/A
10. NOTICE OF ACTION
COUNCIL DIRECTIVE:
11. AGENDA BILL NO: ~ '- 0(_.; (~
q
2. CLEARANCE COMMENTS:
5. IMPACT ON NON-PASSAGE:
The City's General Fund will operate for most of the year with a negative cash balance which is contrary to statute.
6. IMPACT ON STAFFING~ BUDGETS~ FACILITIES~ EQUIPMENT OR OTHER RESOURCES-
Included in the 1999 - 2000 Budget.
7. RESEARCH SOURCES:
Cash flow projections. Bond counsel. Negotiations with underwriting bank.
~0~/~9/00 WED ~3:$4 FAX 206 p-/ 8725 GO~LIEB FISHER A.~DP~S ~002
AN ORDINANCE. of the City of Bremerton Washington relating
to the incurrcnce of indebtedness; lm'oviding for the sale and
issuance of $1,250.000 principal amount tax anticipation notes,
2000, to pay City expenses pending for the receipt of general City
taxes; providing for the date, denominations, form, terms,
registration privileges, maturity, interest rates and covenants of the
notes; and providing for the sale and delivery of such notes to Banc
of America Securities LLC
WHEREAS, the City Council of the City of Bremerton (the "City") finds that the
periodic collections of sales, excise and general ad valorem taxes and other revenue m
2000 will not be sufficient to meet necessary City expenses as they are incurred in 2000,
and
WHEREAS, the City Council of thc City deems it to be in the best interest of the
City that the City borrow money and issue and sell short-term obligations in the form of
tax anticipalion notes pursuant to chapter 39.50 RCW for the purpose of financing such
expenses pending receipt of taxes and other revenue collected by the City; and
WH~I~.REAS, the incurrence of such indebtedness by the City will not causc the
total indebtcdness 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
WI~;REAS, Banc of America Securities I.I.C (the "Purchaser") has offered, by
way of the Purchase Agreement (the "Purchase Agreement"), to purchase such limited
tax anticipation notes upon the terms trod conditions hereinafter set forth; NOW,
THEREFORE,
'01/19/00 WED 13:55 FAX 206 6'1 8725 GOTTLI£B FISHER AND~S ~003
TIlE CITY OF BREMERTON DOES ORDAIN AS FOLLOWS:
Section 1. Findin2, Purpose and Description of Notes. The City authorizes the
sale and issuance of its 'Wax Anticipation Notes, 2000" (the "Notes") for the purpose of
financing City expenses pending receipt of taxes and other revenue collected by the City
and to pay certain "incidental costs and costs related to the sale and issuance" (as defined
in RCW 39.46.070) of the Notes_
The Notes shall be in the aggregate principal amount of $1,250,000; shall be
dated February 1, 2000; shall mature on January 31, 2001; shall bear interest (computed
on the basis of a 360-day year of twelve 30-day months) from their date at the rate of
4.40 % per annum, payable at maturity. The Notes shall be issued in fully registered
form as to both principal and interest; shall be in the denomination of $50,000 each or
any integral multiple thereof; shall be numbered separately in such manner and with any
additional designation as the fiscal agencies of the State of Washington in Seattle,
Washington, and New York, New York (collectively, the "Registrar"), deem necessary
for purposes of identi fication.
If a~y Note is not paid upon proper presentment at its maturity date, the City shall
have the obligation to pay interest at the same rate from and after such maturity date until
such Note, both principal and interest, is paid in full.
The Notes shall be negotiable instruments to the extent provided by
RCW 62A.8-I02 and RCW 62A.8-105.
On thc date of issue of the Notes, all Notes maturing in the same maturity year shall
be issued in the form of a single certificate, which certificate shall be registered in the
name of The Depository Trust Company or any successor thereto engaged to operate a
2
01/19/00 WED 13:55 F~ 206 ~'' 8725 GOTrLIEB FISHER ~II)P"'~S ~1004
book-entry system for recording the beneficial ownership of the Notes, as Custodian (the
"Custodian"), or it~ nominee, and delivered to the Custodian. The Custodian shall hold
each such Note certificate in fully immobilized form for the benefit of thc beneficial
owners of the Notes (the "Beneficial Owners") pursuant to the Blanket Issuer Letter of
Representations, dated November 19, 1997, between the City and the Custodian (the
"Letter of Representations"), until the earliest to occur of either (1) the date of maturity of
the Notes evidenced by s'uch certificate, at which time the Custodian shall surrender such
certificate to the Regiswar for payment of the principal of and interest on such Notes
coming due on such date, and the cancellation thereof; (2) the fifth business day
following tile date of receipt by the Registrar of the City's request to terminate the book-
entry system of registering the beneficial ownership of the Notes (the "Book-Entry
Temaination Date"); or (3) the date the City determines to utilize a new Custodian for the
Notes, at wltich time the old Custodian shal.l (provided the City is not then m default of
any payment then due on the outstanding Notes) surrender the imr~obilized certificates to
the Registrar for transfer to the new Custodian and cancellation as herein provided.
For s() long as any outstanding Notes are registered ~n the name of the Custodian or
its nominee and held by the Custodian in fully ~nunobilized form as described in this
Section 1, rite rights of the Beneficial Owners shall be evidenced solely by an electronic
and/or manual entry made £rom time to time on the records established and maintained by
the Custodian in accordance with the Letter of Representations, and no certificates
evidencing such Notes shall be issued and registered in the name ot' any Beneficial
Owner or such Beneficial Owner's nominee.
3
'01/19/00 WED 13:55 FAX 206 ~-' 8725 GOTrLIEB FISffER ANDr-~S ~005
The City may terminate the "book-entry" system of registering ownership of the
Notes at any time (provided the City is not then in default of any payment then due on the
outstanding Notes) by delivenng to the Registrar: (a) a written request that it issue and
deliver Note certificates to each Beneficial Owner or such Beneficial Owner's nominee
on the Book-Entry Termination Date; Co) a list identifying the Benefici-,d Owners as to
both name and address; and (c) a supply of Note certificates, if necessary for such
purpose. Upon surrender to the Re~strar of the immobilized certificates evidencing ~
of the then outstanding Notes, the Registrar shall issue and deliver new certfficatcs 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
cemficates may be in any integral multiple of $50,000. Following such issuance, the
Owners of such Notes may transfer and exchange such Notes in accordance with
Section 9 hereof.
Neither the City nor the Registrar shall bare at any time any responsibility or
liability to any Beneficial Owner of any Notes or to any other person for any error,
omission, action, or failure to act on the par~ of the Custodian with respect to payment,
when due, to the Beneficial Owner of the principal and interest on the Notes, proper
recording of beneficial ownership of Notes, proper transfers of such beneficial
ownership, or any notices to Beneficial Owners or any other matter pex'taining to the
Notes.
Sect/on 2. Place, Manner and Meclium of Payment. Both the principal of and
interest on the Notes shall be payable in lawful money of the United States of America.
Prior to the Book-Entry Termination Date, the principal and interest on the Notes shall be
4
01/19700 ~D 13:56 FAX 206 ~''~ 8725 GOTTLIEB FISHER ANDr-'~S ~006
paid by the Registrar to the Custodian as the Owner (herema.fter defined) thereof, for the
benefit o1' the Beneficial Owners thereof, in accordance with the Letter of
Representations. From and after the Book-Entry Termination Date, principal of and
interest on ~he Notes shall be paid to the persons who are named as the registered owners
of the Notes (the "Owners") on the registration books for the Notes (the "Note Register")
maintained by the Registrar only upon presentation and surrender of such Owners' Notes
upon maturity, at the prLucipal corporate trust office of either Re~strar, at the option of
thc Owners.
Section 3. No Redemption; Open Market Purchase. The Notes shall not be
subject to redemption prior to maturity_
The City reserves the right to purchase any or all of the Notes on the open market
at an3, time and at any price. Ali Notes purchased by the City shall be surrendered to the
Registrar for cancellation.
Section 4. Debt Limit Not Exceeded. The City finds and covenants that the
Notes are issued w~thlu all constitutional and statutory debt limitations prcscnQy
applicable u~ the City.
Section 5. Pledge of FuI1 Faith, Credit and Resource. The Notes arc limited tax
general obligations ot: the City. Unless the principal of and intez'est on the Notes arc paid
from other sources, so IonS as the Notes are outstanding, the City hereby irrevocably
covenants to include in its budgets and to levy taxes annually within the constitutional
and statutes, limitations provided by law without a vote of the people upon all p~opert3~
within the City subject to taxation in amounts which, together wi. th any other money
legally available therefor, shall be sufficient to pay the principal and interest on the Notes
01/19/00 WED 13:56 FAX 206 6'~ 8725 GOTTLIEB FISHER ANDR~"~ ~007
as the same. sha/1 become due. The City hereby irrevocably pledges its full faith, credit
and resources to the annual levy and collection of such taxes and for the prompt payment
of such principal and interest.
The City t~ereby irrevocably covenants that any tax levied and collected az
provided for herein for the payment of the principal o£ and interest on the Notes shall be
within and ~ a part of the tax levy permitted the City without a vote of the people and
that a sufficient portion of the receipts of' any such tax levy or levies to be made so long
as the Notes arc oatstancting, together with any other money legally available therefor,
shall be and is hereby set aside, pledged and appropriated for the payment of the principal
of and interest on the Notes as the same shall become due.]
Section 6. Form of Notes. The Notes shall be typewritten, printed or
lithographcd on good bond paper in a form consistent with tlais ordinance and
Washington law.
Section 7. Execution of Notes. The Notes shall be signed on behalf of the City
with the facsimile or manual si~atures of the Mayor and thc City Clerk, and shall have
the seal of the City impressed or a facsimile thereof imprinted thereon.
In c~se either or both of the office~ who shall have executed any Note shall cease
to be such officer or officers of the City before the Note so signed shall have been
authenticated or delivered by the Registrar or issued by the City. such Note nevertheless
may be authenticated, delivered and issued and upon such authentication, delivery and
issuance, shall be as binding upon the City as though those who signed the same had
continued to be such officers of the City. Any Note also may be signed and attested on
behalf of the City by such persons as at the actual date of execution of such Note shall be
01/19/00 t~D 13:55 FA~ 206 ~ · $725 GOTTLIEB FISHER ANDF-~$ ~008
the proper officers of the City although at the original datc of such Note such persons
wcrc not such officers of the City.
Section 8. Authentication and Delivery_ of Notes by Registrar. The Registrar arc
authorized and directed, on behalf of thc City, to authenticate and dchvcr Notes initially
issued or transfcrrexi or exchanged in accordance with the provisions of such Notes and
thi. s ordinm~ce.
Only such Notes as shall bear thereon a "CErtificate of Authcnticat/On" manually
executed b)' an authorized signatory of thc Registrar shall bc v'alid or obligatory for any
purpose or entitled to the benefits of this ordinance. Such Certificate of Authenti. cation
shall be conclusive evidence that the Notes so authenticated havc be. on duly executed,
authenticated and delivered hereunder and are entitled to the benefits of this ordinance.
Thc Re,sitar shall bc responsible for its representations contained in the
Certificate of Authentication on the Notes.
Section 9. Re_~i. stra_tion: Transfer and Exchange. The Registrar shall keep, or
cause to be kept, the Note Register at its principal corporate trust office.
The City and the Registrar, each in its discretion, may d~em and treat the Owner
of each Nora as the absolute owner thereof for all. purposes, and neither thc City nor the
Registrar shall be affected by any notice to the contrary. Payment of any such Note shall
be made only as described in Section 2 hereof, but such r~gistration may be transferred as
he, in provided. Ail such payments made as provicied in Section 2 hereof shall be valid
and shall satisfy and discharge thc hability of the City upon such Note to the extent of the
amoun~ or amounts so paid.
0~/~9/00 WED ~3:$? FA~ 206 6'' ~725 GOTTLIEB FISHER AND~""'~ ~009
The registered ownership of any Note may be transferred. Prior to the Book-
Entry Termination Date, the beneficial ownership of the Notes may only be transferred
on the records established and maintained by the Custodian. On and after the Book-Entry
Termination Date, no transfer of any Note shall be valid unless it is surrendered at any
principal corporate trust office of the Regisu'ar, with the assignment form appearing on
such Note duly executed by the Owner or such Owner's duly authorized agent, in a
manner satisfactory to the Registrar. Upon such surrender, the Registrar shall cancel the
surrendered Note and shall authenticate and deliver, without charge to the Owner or
transferee therefor (other than any governmental fees or taxes payable on account of such
transfer), a new Note or Notes (at the option of the new Owner), of the same maturity and
interest rate and tbr the same aggregate principal amount, in any authorized
denomination, naming as Owner thc person or persons listed as the assignee on the
assignment form appearing on the surrendered Note, in exchange for such surrendered
and cancelled Note.
On and after the Book-Entry Term{nation Date, any Note may be surrendered at
the principal corporate trust o~ce of the Registrar and cxehangec[, without charge, for au
equal aggregate principal amount of Notes, in any authorized denomination. The
Registrar shall not be obligated to transfer-or exchange any Note during the 15 days
preceding the maturity date.
The Registrar may become the Owner of any Note v~th 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 peri,it any o[ its officers or directors to act as a member of, or in an), other
01/19/00 WED 13:57 FAX 206 ~'' 8725 GOTTLIEB FISHER ANDP-wS ~010
capacity w~th respect to, any committee formed to protect the fights of the Owners of the
Notes.
The City covenants that, until ali Notes shall have been surrendered and
cancelled, it will maintain a system of recording the ownership of each Note that
complies with the provisions of the Internal Revenue Code of 1986, as amended (the
"Code").
Sec.___~ion 10. Mutilated, Lost, Stolen or Destroyed Notes. If any Note becomes
mutilated, lost, stolen or destroyed, the Registrar may authenticate and deliver a new
Note of the same maturity and interest rate and of like tenor and effect in substitution
therefor, all in accordance with law. If such mutilated, lost, stolen or destroyed Note has
matured, the City at its option, may pay the same without the surrender thereof.
However, no such substitution or payment shall be made unless and until the applicant
shall fumisll (a) evidence satisfactory to the Registrar of the destruction or loss of the
original Note and of the ownership thereof, and (b) such additional security, indemnity or
evidence as may be required by or on behalf of the City. No substitute Note shall be
furnished unless the apphcant shall reimburse the City and the Registrar for their
respective e~penses in the furnishing thereof. Any such substitute Note so furnished shall
be equally and proportionately entitled to the security of this ordinance with all other
Notes issued hereunder.
Section l 1. 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 an)' reinvestment thereo~) as will provide a series of payments which shall be
01/19/00 ~J~D 13:88 FAX 206 ~ ' 8725 GOTrLIEB FISHER ANDF' '~ . ~011
sufficient, :ogether with any money imtially deposited, to provide for the payment of the
principal o1' and interest on all or a portion of the Notes, when due in accordance with
their terms in accordance with a refunding plan adopted by the City, are set aside in a
special fund (hereinafter c',dled the "trust account") to effect such payment and are
pledged irrc. vocably for the purpose of effecting such payment, then no further payments
need be made into the Note Fund for the payment of the principal of and the interest on
such Notes, the Owners thereof shall cease to be entitled to any lien, benefit or security of
this ordin~ce except for the right to receive the money and the principal and interest
proceeds Ol~ the obligations set aside in the trust account, and such Notes shall no longer
be deemed to be outstanding hereunder.
Section 12. Sale of the Notes. The Purchaser has presented the Purchase
Agreement to the City pursuant to which the Purchaser has offered to purchase the Notes,
under the terms and cond/fions provided in the Purchase Agreement, which written
Purchase Agreement is on file with the City Clerk and is incorporated herein by this
refe~nce. The City Council finds that entering into the Purchase Agreement is in the
City's best interest and therefore accepts the offer contained in the Purchase Agreement
and authorizes the execution of the Purchase Agreement by City officials.
The Notes will be prepared at City expense and will be delivered to the Purchaser
in accordance with the terms of the Purchase Agreement with the approving legal opinion
of the City's bond counsel relative to the issuance of the Notes printed on each Note or
attached thereto. Bond counsel has not been engaged to participate in the preparation or
review of, or express any opinion concern/ag the completeness or accuracy of the official
statement or other disclosure documentation used in connection with the offer or sale of
10
01/19/00 I~ED 13:58 FAX 206 6"' 8725 GOTrLI£B FISHER tNDI¥"~S ~012
thc No,es 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 momtonng, thc City's
compliance with any federal law or regulations to maintain thc tax-exempt status of the
interest on [he Notes.
Section 13. Dchvery of Notes; Temporary Notes. Thc proper City officials are
authorized and directed to execute and'or approve, as appropriate, ail documents,
including bat not limited to, the final Official Statement pertaining to the Notes, and to do
everfthmg necessagy for the preparation and dehvery of a transcript of proceedings
pertaining to the Notes, and the printing, execution and prompt delivery of the Notes to
the Purchaser and for the proper application and use o[ the proceeds of the sale there, off
If definitive Notes are not ready for delivery by the date established for closing
(the "Closing"), the City Treasurer, upon the approval of the Purchaser, may cause to be
issued and delivered to the Purchaser one or more temporary Notes with appropriate
on'fissions, changes and additions. Any temporary Note or Notes shall be entitled and
subject to the same benefits and provisions of this ordinance with respect to the payment,
security and obligation thereof as definitive Notes authorized hereby. Such temporary
Note or Notes shall be exchangeable without cost to the Owners thereof for definitive
Notes when the latter are ready l:br delivery.
Sectign 14. Application of Note Proceeds. The accrued interest on the Notes
received by ~he City upon the sale of the Notes, if any, shall be deposited into the General
Fund and sha.ll be applied to the payment of interest coming due on the Notes. The
principal pn~ceeds of the Notes shall be deposited in the General Fund of the City and
used solely for the purpose of pay/rig the cash flow deficits in the City's General Fund
11
01/19/00 ~V]ZD 13:$8 F,~.X 206 ~'' 8725 GOTI'LIEB FISI{]gR &N])P-~ ~013
resulting from budgeted expenditures, and any interest received from the deposit or
investment of such proceeds shall be apphed and used solely for such purposes.
Section 15. Permit[ed Financing of Cumulative Cash Flow Deficit. Based upon
the reasonably expected amounts of sales, excise and general ad valorem property taxes
and other ct:venue to be collected in 2000 (including investment proceeds of the Notes)
and that are expected to be available to make General Fund expenditures in 2000
(computed ~)y treating a reasonably working capital reserve in an amount not exceeding
5% of the t,~tal General Fund expendi, tutes in the prior fiscal year as not being available
to make those expenditures), the City Council finds that the principal amount of the
Notes does act exceed the maximum anticipated "cumulative cash flow deficit" (as
defined by Section 148 of the Code, and applicable Treasury Regulations thereunder)
expected to occur in the City's General Fund during 2000 and that is to be financed with
the proceeds of the Notes.
Section 16. Tax-Exemp~n Covenants. The City covenants that it will not take
or permit to be taken on its behalf any action that would adversely affect the exclusion of
the interest on the Notes frona gross income for purposes of Federal income taxation, and
will take or cequire 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 elr the
interest on the Notes from gross income for purposes of federal income taxation.
Without limiting the generality of the Foregoing, the City will not invest or make or
permit any t~se of the proceeds of the Notes or of its other money at any time during the
term of the Notes which would cause the Notes to be "arbitrage bonds" within the
meaning of Section 148 of the Code.
01/19/00 ~ED 13:$9 FAX 206 r 8725 GOTTLIEB FISHER ANDF ~$ ~014
The City covenants that, if all the proceeds of the Notes have not been spent
within six months from the date of issuance of the Notes, it will calculate or cause to be
calculated, and shall rebate to the United States, ',ri earnings from the investment of Note
proceeds that are in excess of the amount that would have been earned had the yield on
such investments been equal to the yield on the Notes, plus income derived from such
excess earnings, to the extent and in the maimer required by Section 148 of the Code.
The City has not been notified of any listing or proposed listing by the Internal
Revenue Service to the effect that the City is a bond issuer the arbitrage certifications of
which may not be relied upon.
The City will take no actions and will make no use of the proceeds of the Notes or
any other funds held under this ordinance which would cause any Note to be treated as a
"private activity bond" (as defined in Section 141(o) of the Code) subject to treatment
under said Section 141(b) as an obligation not described in Section 103(a) of the Code,
unless the tax exemption thereof is not affected.
Section 17. Preliminary Official Statement Declaration. The Ci.ty has been
provided wJ th copies of a preliminary official statement dated January 5, 2000 (the
"Preliminary Official Statement"), prepared in connection with the sale of the Notes. For
the sole purpose of the Purchaser's compliance with Securities and Exchange
Commissim~ Rule 15c2-12(b)(1), the City "deems final" the Prelil,ninary 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 Notes
dependent ou such matters.
13
'01/19/00 ~NED 13:50 FAX 206 P'' 8725 GOTrLIEB FISEER ANDP-~S .._ ~01S
Section 18. Undertaking to Provide Contin,.uing Disclosure. This section
constitutes the City's written undertaking for the benefit of the Owners and Beneficial
Owners of thc Bonds required by subsection (b)(5)(i) of Rule 15c2-12 (the "Rule") of the
United States Securities and Exchange Commission (the "SEC").
The City hereby agrees to provide or cause to be provided to each then existing
nationally recognized municipal securities information repository designated by the SEC
("NKMSIR') and to the state information depositol'y ("SID'), if one is created, the
following annual financial information and operating data (collectively, the "Annual
Financial Information") for each prior ~sca] yem-~ commencing with the fiscal year
ending December 31, 2000, on or before thc last day of the ninth month following the end
of such prior fiscal year:
(a) Annual financial statements prepared in acco~flance with the
generally ~ccepted accounting principles applicable to governmental -hi.ts, as such
pdncipl.~s may bc changed from t~me to t~me and as permitted by state law; which
statements ~vil[ not be audited, except that ~f and when audited financial statements are
otherwise prepared and avMlable to the City, they will be provided (the "Annual
Fi. nancial S~ataments");
(b) Authorized, issued and outstanding balance of general obligations
bonds;
(c) Thc assessed valuation for the fiscal year
(d) The regular property tax levy rate and regular property t~x levy
rate [~.mit for the fiscal year; ,'md
14
01/19/00 ~ED 13:59 FAX 206 e-~ 8725 GO'I~LIEB FISHER ANDP-'~S
(e) A narrative explanation of the reasons for any amendments to this
Section 1,* 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 Rulemak~ng Board (the "MSRB') or any other documents
theretofor¢ provided to each then existing N'RMSIR or the SID, if one is created.
If not submitted as part of the Annual Financi.',d bxt'ormation, then when and if
available, the City shall provide its Annum Financial Statements, which shall have been
audited .by such auditor as shall be then required or permitted by the State ].aw, to each
then existing NRMSIR and to the SID, if one is created.
The City further agrees to provide or cause to be provided, in a timely manner, to
the SID, if one is created, and to either the MSRB or each then existing N'RMSIR, notice
of any of the following events with respect to thc Notes, if material:
1. Principal. and iaterest 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;
15
'01/19/00 WED 14:00 FAX 206 e'' 8725 GOTrLIEB FISHER ANDP'~S ~017. _
6. Adverse tax opinions or events affecting the tax-exempt status of the
Notes;
7. Modifications to rights of the Owners of the Notes;
8. Optional redemptions of the Notes;
9. Defeasances of the Notes;
10. Release, substitution o,' sale of property securing repayment of the
Notes; and
11. Rating changes.
The City also agrees to provide or cause to be provided, in a timely manner, to the
SID, if one is created, and to either thc MSRB or each then existing NRMSIR, notice of
its failure to provide the Annual Financial Information for the prior fiscal year on or
before the last day of the ninth month following the end of such prior risc'al year.
After the issuance of the Notes, so Iong as the interests of the Owners or Beneficial
Owners of the Notes will not be materially impaired thereby, as determined by a party
unaffiliated with the City (including, without limitation, a trustee for the Owners,
nationally recognized bond counsel or other counsel familiar with the federal securities
law), or pursuant to a favorabIe "no-action letter" issued by the SEC, this Section 18 may
only be amended in connection with any change in legal requirements, change in law, or
change in the identity, nature or status of the obligated person, or type of business
conducted, and only in such a manner that the undertaking, of the City, as so amended,
would have complied with the requirements of the Rule at the time of the primax'y
offering, after tak/ng into account any amendments or interpretations of the Rule, as well
as any change in circumstances.
~6
'01/19/00 WED 14:00 FAX 206 a-' 8725 GOTrLIEB FISHER A1VI)P"'"S ~018
The City's obligations to provide Financial Information and notices of certain
events shall terminate without amendment upon thc defeasance, prior redemption or
payment in full of all of the then outstanding Notes. This Section 18 or any provision
hereof, shall be null and void if the City (i) obtains an opinion o~' nationally recognized
bond counsel or other counsel familiar with the federal securities laws to the effect that
those portions of the Rule which requh'e this Section 18 or any such provision are invalid,
have been repealed retroactively or otherwise do not apply to the City; and (ii) notifies
and provides the SID, if any, and either thc MSRB or each then existing NRMSiR with
copies of such opinion_
The ri~ht of each Owner and Benefici. al Owner of Notes to enforce the provisions
of this Section 18 shall be limited to the right to obtain specific enforcement of the City's
obligations under this Section 18, and any failure by the City to comply with the
provisions of this undertaking shall not be a default with respect to the Notes under this
ordinance.
The City Treasurer is authorized and directed to take such ~urther action on behalf
of the City as may be necessary, appropriate or convenient to carry out the requirements
of this Section 18.
Section 19. Contract; Severability: The covenants contained in this ordinance
shall constitute a contract between the City and the Owners of each ,and every Note. The
City unconditionally covenants that it will -keep and perform all of the covenants of the
Notes and this ordinance. It' 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 thc remaining provisions of this ordinance or thc Notes, and this ordinance and
17
01/19/00 'ii"ED 14:00 FAX 206 6'' 8725 GOTI'LIEB FISHER ANDRV~$ ~019
the Notes shall be construed and enforced as if such unconstitutional or invalid provision
had not been contained herein.
Section 20. Effective Date. This ordinance shall take effect and be in full force
ten days after passage and publication or an approved summary, consisting of the title.
APPROVED by thc City Council of the City of Bremerton, Washington, thc 12th
day of Jant~try, 2000.
PASSED by the City Council of the City of Brcmerton, Washington, this 19th day
of January, 2000.
M/IGE SHEPI-~RD, Council President
APPROVED this ~ day of January, 2000.
LYNN HORTON, Mayor
ATTEST:
Kathlecn McCluskcy, City Clerk
APPROVE1) AS TO FORM:
'--/ Judil[ An~-~ws, ~ Counsel
PUBLISHED:
EFFECTIVE DATE:
ORDINANCE NO. ~
18
PRELIMINARY OFFICIAL STATEMENT DA TED JANUARY $, 2000
BOOK-ENTRY ONLY
NEW ISSUE
NEGOTIATED R~TING: N~t Appli~l For
In the opinion of B~nd Counsel, as of the Date of Issue, and assuming the City fulfills its covenant to comply with certain requimrnents of ~ Internal Revenue
Code of 1986, as amended (the ~Code") that must be met subsequent to the issuance of the Notes: interest on the IVo~s is excluded from
gross
income
for
te(te~l income tax puqx~es, and is not an item of tax preference for purposes of deten~ning the a/ternat~ minimum tax on individuals and co~ocatioes; and
the Notes am "qualified tax-exempt obticjattens' for pu~s of the parEal interest expense deduction available unde¢ Section 265 of the Code. I-~o~vever, Interest
on the Notes is included in the computation of othe¢ taxes, including without Iimitatio¢7 the a/temat/ve minimum tax on corporatiows, and may be subject to othe¢
colta~cal tax consequences. See "TAX F__~EMPTION" and "OTHER TAX CONSEQUENCES" bemin.
CITY OF BREMERTON, WASHINGTON
$1 250 000
TAX ANTICIPATION NOTES 2000
DATED: Februa~ 1, 2000 DUE: Janua~ 31, 2001
The City's Tax Anticipation Notes, 2000 (the "Notes"), are issued in fully registered form, and will be fully registered in the
name of Cede & Co., as Note owner and nominee for The Depository Trust Company ("DTC"), New York, New York. DTC
will act as securities depository for the Notes. The Notes will be initially issued in book-entry form only in the value of
$50,000 or any integral multiple thereof. Purchasers will not receive certificates representing their interest in the Notes
purchased. The Notes bear interest from their date payable at maturity. The principal of and interest on the Notes are
payable by either fiscal agency of the State of Washington, currently The Bank of New York, Now York, Now York and Wells
Fargo Bank, National Association, Seattle, Washington (the "Fiscal Agent" or 'Registrar"). For so long as the Notes remain
in a 'book-entry only" transfer system, the Fiscal Agent will make such payments only to DTC, which will in turn remit such
principal and interest to the DTC participants for subsequent disbursement to Beneficial Owners of the Notes as described
herein under the caption "Book-Entry Only System."
MATURITY
Due Amount Rate Yield or Price
January 31, 2001 $ 1,250,000 4.40% 100
The Notes will not be subject to redemption prior to their stated maturity.
The Notes are limited tax general obligations of the City. The City has irrevocably covenanted that, unless the principal of
and interest on the Notes are paid from other sources, so long as the Notes are outstanding, the City will levy taxes annually
within the constitutional and statutory limitations provided by law without a vote of the people upon all of the property in the
City subject to taxation in amounts which, together with any other money legally available therefor, shall be sufficient to pay
the principal and interest on the Notes as the same shall become due. The City has irrevocably pledged its full faith, credit
and resources to the annual levy and collection of such taxes and for the prompt payment of such principal and interest.
See "SECURITY" herein.
The City has not designated the Notes as "qualified tax-exempt obligations" under the Internal Revenue Code of 1996, as
amended, for banks, thrift institutions and other financial institutions. See "OTHER TAX CONSEQUENCfiS' herein.
The Notes are offered by the Underwriter when, as, and if issued, subject to the approving legal opinion of Gottlieb, Fisher &
Andrews, PLLC, Bond Counsel, Seattle, Washington, a copy of which opinion will be delivered with the Notes. The Notes in
definitive book-entry form will be ready for delivery through the facilities of DTC in New York, New York, on or around
February 1, 2000.
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 mat~hg an informed investment decision.
Banc of America Securities LLC
Representations
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 Preliminary Official
Statement, and, if given or made, such other information or representations must not be relied upon as
having been authorized by the City or the Underwriter. This Preliminary Official Statement does not
constitute an offer to sell, nor shall there be any sale of the Notes by any person in any jurisdiction in
which it is unlawful for such person to make such a sale.
The information contained in this Preliminary Official Statement has been obtained from City Officials and
other sources believed to be reliable. Neither a representation, warranty nor guarantee is made by the
Underwriter as to the accuracy or completeness of any information in this Preliminary Official Statement
and nothing contained in this Preliminary Official Statement is or shall be relied upon as a promise or
representation by the Underwriter. The delivery of this Preliminary Official Statement does not imply that
the information contained herein is correct as of any time subsequent to the date of the Preliminary
Official Statement as shown on the cover page.
Disclosure Statement
The City will deliver to the Underwriter at the time of delivery of the Notes a signed statement
substantially to the effect that this Preliminary Official Statement, as of its date and as of the date of the
Notes, neither contains any untrue statement of a material fact nor omits to state any material fact
necessary to make the statements therein, in light of the circumstances under which they were made, not
misleading in any material respect and 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 final Official Statement.
Secondary Market
It has been the practice of the Underwriter to maintain a secondary market in municipal securities which it
sells. The Underwriter intends to engage in secondary market trading of the Notes, subject to applicable
securities laws. The Underwriter, however, is neither obligated to engage in secondary trading nor to
repurchase any of the Notes at the request of the registered owners thereof and no assurance can be given
that a secondary market for the Notes will be available.
In connection with the offering of the Notes, the Underwriter may over-allot or effect transactions that
stabilize or maintain the market price of the Notes at a level above that which might otherwise prevail in
the open market. Such stabilizing, if commenced, may be discontinued at any time.
This Preliminary Official Statement, as of its date, is in a form that is expected to be "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 that will be available within seven (7) days of the sale date of the Notes.
CITY OF BREMERTON
Kitsap County, Washington
239 Fourth Sl~eet
Bremerton, Washington 98337
(360) 478-5290
MAYOR
Term Expires
December 31
Lynn Horton 2001
CITY COUNCIL
Carol Arends Chairperson 2001
Wayne Olsen Member 2001
John Law Member 2001
Mike Shepherd Member 2001
Cecil McConnell Member 2003
Conrad Esser Member 2003
David Farr Member 2003
Edward Rollman Member 2003
Jim Reed Member 2001
APPOINTED CITY OFFICIALS
Richard Hanna Treasurer
Kathleen McCluskey Administrative Services Director/City Clerk
Glenna Malanca Attorney
BOND COUNSEL
Gottlieb, Fisher & Andrews, PLLC
Seattle, Washington
UNDERWRITER
Bane of America Securities LLC
Seattle, Washington
iii
TABLE OF CONTENTS
Page
Introduction ......................................................................................................................................... !
Description of the Notes ...................................................................................................................... !
Autho~zation ...................................................................................................................................... 3
Security .............................................................................................................................................. 3
Purpose ............................................................................................................................................... 4
Failure to Redeem the Notes ................................................................................................................ 4
Debt Payment Record .......................................................................................................................... 4
Future Financing ................................................................................................................................. 4
Assessed Valuation Determination ....................................................................................................... 4
Tax Collection Procedure .................................................................................................................... 5
Authorization of'Debt .......................................................................................................................... 5
General Obligation Indebtedness ..........................................................................................................
Limits on Amount of General Obligation Indebtedness ......................................................................... 6
Authorization of Short-Term Debt ....................................................................................................... 6
Taxing Powers and Limitations ............................................................................................................ 6
Auditing of City Finances .................................................................................................................... 7
Authorized Investments ....................................................................................................................... 8
Net Direct Debt and Estimated Net Overlapping General Obligation Debt ............................................ 10
Bonded Debt Ratios of the City ........................................................................................................... l0
Statutory Debt Limit Calculation ......................................................................................................... 1 l
Ad Valorem Tax Record of the City .................................................................................................... 12
Ad Valorem Property Tax Rates in the City ......................................................................................... 12
Comparative Statement of General Fund Revenues and Expenditures ...................................................13
Contingency Reserve Fund Year-End Balances .................................................................................... 13
General Fund Budget ........................................................................................................................... 14
Schedule of General Obligation Bond Debt Service for the City ............................................................ 15
City Profile ......................................................................................................................................... 15
General and Economic Information ...................................................................................................... 17
Preservation of Tax Exemption ............................................................................................................ 22
Conflicts of Interest ...................................... : ...................................................................................... 22
Tax Exemption .................................................................................................................................... 22
Other Tax Consequences ..................................................................................................................... 23
Absence of Material Litigation ............................................................................................................. 24
Approval of Bond Counsel .................................................................................................................. 24
Continuing Disclosure ................................................. · ........................................................................ 24
Underwriting ....................................................................................................................................... 25
Concluding Statement .......................................................................................................................... 25
Form of Legal Opinion ................................................................................................................ Appendix A
PRELIMINARY OFFICIAL STATEMENT
CITY OF BREMERTON, WASHINGTON
$1,250,000
TAX ANTICIPATION NOTES, 2000
INTRODUCTION
The City of Bremerton, Washington (the "City"), a municipal corporation duly organized and existing
under and by virtue of the laws of the State of Washington, furnishes this Official Statement in connection
with the offering of $1,250,000 principal amount of Tax Anticipation Notes, 2000 (the "Notes"). This
Official Statement provides information concerning the City and the Notes.
DESCRIPTION OF THE NOTES
Principal Amount, Date, Interest Rate, and Maturity
The Notes will be issued in the principal amount of $1,250,000 and will be dated and bear interest from
February 1, 2000 until their stated maturity. The Notes will mature on January 31, 2001, and will bear
interest, payable at maturity, at the rate of % per annum. Interest on the Notes will be computed
on the basis of a 360-day year of twelve 30-day months.
Optional Redemption
The City has not reserved the right to redeem the Notes prior to maturity.
Paying Agent
Principal of and interest on the Notes will be payable by either State fiscal agency (the "Fiscal Agent" or
"Registrar') in New York, New York, or Seattle, Washington, currently The Bank of New York and
Wells Fargo Bank, National Association (or such other fiscal agency or agencies as the City Treasurer
may from time to time designate). So long as Cede & Co. is the registered owner of the Notes, principal
of and interest on the Notes are payable by wire transfer by the Registrar to DTC, which, in turn, is
obligated to remit such principal and interest to the DTC Participants for subsequent disbursement to the
Beneficial Owners of the Notes, as further described herein under the caption "Book-Entry Only
System."
Form and Denomination
The Notes will be issued in fully registered form as to both principal and interest in the denomination of
$50,000 or any integral multiple thereof. The Notes, when issued, will be registered in the name of Cede
& Co., as registered owner and nominee of The Depository Trust Company, New York, New York
DTC will act as securities depository for the Notes. Individual purchases may be made in book-entry
form only. Purchasers will not receive certificates representing their interest in the Notes purchased. So
long as Cede & Co. is the registered owner of the Notes, as nominee of DTC, references herein to the
registered owners or Note owners will mean Cede & Co. and will not mean the "Beneficial Owners" of
the Notes. In this Official Statement, the term ''Beneficial Owner" will mean the person for which a DTC
participant acquires an interest in the Notes.
So long as Cede & Co. is the registered owner of the Notes, principal of and interest on the Notes are
payable by wire transfer by the Registrar to DTC, which, in turn, is obligated to remit such principal and
1
interest to the DTC participants for subsequent disbursement to Beneficial Owners of the Notes, as
further described under the caption "Book-Entry Only System."
Book-Entry Only System
The following information has been provided by DTC. Beneficial Owners should confirm the following
with DTC or the Participants.
DTC will act as initial securities depository for the Notes. The Notes will be issued as fully registered
Notes, and will be registered in the name of Cede & Co. (DTC's partnership nominee). One fully-
registered Note certificate will be issued for the Notes, in the aggregate principal amount of the Notes,
and will be deposited with DTC.
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 (the "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 accounts of the
Participants, thereby eliminating the need of physical movement of securities certificates. Direct
Participants include securities brokers and dealers, banks, trust companies, clearing corporations and
certain other organizations. DTC is owned by a number of its Direct Participants and by the New York
Stock Exchange, Inc., the American Stock Exchange, Inc. and the National Association of Securities
Dealers, Inc. Access to the DTC system is also available to others such as banks, brokers, dealers 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.
Purchases of the Notes under the DTC system, in denominations of $50,000 or any integral multiple
thereof, must be made by or through Direct Participants, which will receive a credit for the Notes on
DTC's records. The ownership interest of each actual purchaser of each Note ("Beneficial Owner") is in
turn to be recorded on the Direct and Indirect Participants' records. Beneficial Owners will not receive
written confirmation from DTC of their purchase, but Beneficial Owners are expected to receive written
confirmations providing details of the transaction, as well as periodic statements of their holdings, from
the Direct or Indirect Participants through which the Beneficial Owner entered into the transaction.
Transfers of ownership interests in the Notes are to be accomplished by entries made on the books of
Participants acting on behalf of Beneficial Owners. Beneficial Owners will not receive certificates
representing their ownership interests in the Notes, except in the event that use of the book-entry system
for the Notes is discontinued.
To facilitate subsequent transfers, all Notes deposited by Participants with DTC are registered in the
name of DTC's partnership nominee, Cede & Co. The deposit of Notes with DTC and their registration
in the name of Cede & Co. effect no change in beneficial ownership. DTC has no knowledge of the actual
Beneficial Owners of the Notes. DTC's records reflect only the identity of the Direct Participants to
whose accounts such Notes are credited, which may or may not be the Beneficial Owners. The
Participants will remain responsible for keeping account of their holdings on behalf of their customers.
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.
Neither DTC nor Cede & Co. will consent or vote with respect to Notes. Under its usual procedures,
DTC mails an Omnibus Proxy to the City as soon as possible after the record date. The Omnibus Proxy
assigns Cede & Co.'s consenting or voting rights to those Direct Participants to whose accounts the
Notes are credited on the record date (identified in a listing attached to the Omnibus Proxy).
Principal and interest payments on the Notes will be made to DTC. DTC's practice is to credit Direct
Participants' accounts on payable 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 payable date. Payments
2
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 fbrm or registered in "street
name," and will be the responsibility of such Participant and not of DTC, the 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 Registrar. Disbursement of such
payments to Direct Participants will be the responsibility of DTC, and disbursement of such payments to
the Beneficial Owners will be the responsibility of Direct and Indirect Participants.
DTC may discontinue providing its services as securities depository with respect to the Notes at any time
by giving reasonable notice to the City or the Registrar. Under such circumstances and in the event that a
successor securities depository is not obtained, Note certificates are required to be printed and delivered.
The City may decide to discontinue use of book-entry transfers through DTC (or a successor securities
depository). In that event, Note certificates will be printed and delivered.
On March 22, 1999, DTC announced in a press release that the respective boards of DTC and National
Securities Clearing Corporation ("NSCC") have approved a plan to combine the two companies. The
plan calls for a holding company with two separate operating subsidiaries, an executive management team
and a single board of directors. The plan will be submitted to regulators for formal approval.
NSCC, located in New York, New York and established in 1976, is a provider of centralized, post-trade
comparison, trade guarantee, trade netting, settlement and information services for equities, bonds, Unit
Investment Trusts, mutual fund and annuities transactions in the United States. Its participants include
more that 2,00 broker/dealers, banks, mutual fund companies, insurance carriers and other financial
intermediaries. NSCC is owned by the New York Stock Exchange, American Stock Exchange and the
National Association of Securities Dealers, Inc.
The information in this section concerning DTC and DTC's book-entry system has been obtained from
sources the City believes to be reliable, but the City takes no responsibility for the accuracy thereof
Procedure in the Event of Revisions of Book-Entry Transfer System
If the City is unable to retain a qualified successor to DTC or the City has determined that it is in the best
interest of the City not to continue the book-entry system of transfer or that interests of the Beneficial
Owners of the Notes might be adversely affected if the book-entry system of transfer is continued, the
City will execute, authenticate and deliver at no cost to the Beneficial Owners of the Notes or their
nominees, Notes in fully registered form, in the denomination of $50,000 or any integral multiple thereof.
Thereafter, the principal of and interest on the Notes will be payable to the persons who are named as
registered owners of the Notes on the registration books for the Notes upon presentation and surrender
thereof at the principal corporate trust office of the Registrar, and the Notes will be transferable as
provided in the Note Ordinance.
AUTHORIZATION
The Notes are issued in accordance with the provisions of the Constitution and applicable statutes of the
State of Washington, pursuant to Ordinance No. __ (the "Ordinance") of the City Council, adopted
on January ___, 2000.
SECURITY
The Notes are limited tax general obligations of the City. Unless the principal of and interest on the
Notes are paid from other sources, so long as the Notes are outstanding, the City has irrevocably
covenanted to levy taxes annually within the constitutional and statutory limitations provided by law
without a vote of the people upon all of the property within the City subject to taxation in amounts
which, together with any other money legally available therefor, shall be sufficient to pay the principal and
interest on the Notes as the same shall become 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.
3
The City has irrevocably covenanted that any tax levied and collected as provided for in the Note
Ordinance for the payment of the principal of and interest on the Notes shall be within and as a part of the
tax levy permitted the City without a vote of the people and that a sufficient portion of each such annual
tax levy to be made so long as the Notes are outstanding, together with any other money legally available
therefor, will be and is thereby set aside and pledged for the payment of the principal of and interest on
the Notes as the same shall become due.
PURPOSE
The proceeds of the Notes will be used to provide cash flow management of the City's General Fund
revenues and expenditures, in anticipation of the collection of sales, excise and general ad valorem
property taxes and other money due the City's General Fund in 2000, and paying the costs of issuance
and sale of the Notes, all as approved by the City Council.
FAILURE TO REDEEM THE NOTES
If any Note is not paid when properly presented at its maturity, the City is obligated to pay interest on
that Note at the same rate provided in the Note from and after its maturity until that Note, both principal
and interest, is paid in full.
DEBT PAYMENT RECORD
The City has always promptly met principal and interest payments on outstanding obligations when due.
Additionally, no refunding Bonds have been issued for the purpose of preventing an impending default.
FUTURE FINANCING
The City anticipates three financing transactions in 2000. The first will be a limited tax general obligation
bond issue of approximately $3.5 million to finance the acquisition and limited renovation of an office
building in downtown Bremerton. Approximately half of the building will be used to replace the current
City Hall, with remainder being managed for income generation. The second financing, also a limited tax
general obligation bond issue, of approximately $2.75 million, will finance the replacement of the
clubhouse at the City's Gold Mountain Golf Complex. The third issue will be an unlimited tax general
obligation bond issue of approximately $15 million to finance the construction of a community recreation
center and other improvements to the City's park system. The City expects to submit this issue to the
voters in the spring of 2000.
ASSESSED VALUATION DETERMINATION
In the State of Washington, the County Assessor (the "Assessor") determines the value of all real and
personal property throughout the County (including the City) which is subject to ad valorem taxation.
The Assessor's duties and methods of determining value are prescribed and controlled by statute and by
detailed regulations promulgated by the Department of Revenue of the State of Washington. For tax
purposes the assessed value of property is set at 100% of its actual value. Property in Kitsap County is
revalued annually based on market sales and receives an on-site appraisal every six years. The property is
listed by the Assessor on a tax roll at its current assessed value and the tax roll is filed in the Assessor's
office.
The Assessor's determinations are subject to revision by the County Board of Equalization and, for
certain property, subject to further revision by the State Board of Equalization. After all administrative
procedures are completed, the taxing unit receives the Assessor's final certificate of assessed value of
property within the taxing unit.
4
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 accoum number to each tax lot. The tax roll is delivered to the Kitsap County
Treasurer by January 15 of each year, and an abstract of the tax roll, showing the total amount of taxes
collectible in each of the taxing cities for the year, is delivered to the Board of County Commissioners at
the same time. All taxes are due and payable on the 30th of April of each year, but if the amount due from
a taxpayer exceeds thirty dollars ($30.00), one-half may be paid then and the balance no later than
October 31 of each year.
Ihe method of giving notice of payment of taxes due, accounting for the money collected, the division of
the taxes among the various taxing cities, giving notice of delinquency, and collection procedure are all
covered by detailed statutes. The lien for ad valorem property taxes which have been levied prior to the
filing of federal tax liens is prior to such federal tax liens.
In other respects, and subject to the possible "Homestead Exemption," the lien for delinquent property
taxes is prior to all other liens or encumbrances of any kind on real or personal property subject to
taxation. By law (Chapter 6.13 RCW) the taxing unit may commence foreclosure of a tax lien on real
property after three (3) years have passed since the first delinquency. Washington State's courts have not
decided whether the Homestead Exemption may give the occupying home owner a right in the forced sale
of the family residence for delinquent general property taxes to retain the first $30,000 of proceeds of the
sale. (See Algona vs. Sharp, 30 Wn. App. 837, 638 P.2d 627 (1982), holding the homestead right
superior to liens for local improvement district assessments).
AUTHORIZATION OF DEBT
The power of the City to contract debt of any kind is controlled and limited by state law. All debt must be
set forth in accordance with detailed budget procedures and paid for out of identifiable receipts and
revenues. The budget must be balanced for each fiscal year. It is unlawful for an officer or employee of
the City to incur liabilities in excess of budgetary appropriations.
GENERAL OBLIGATION INDEBTEDNESS
Under the Constitution and statutes of the State, the City may incur two types of general obligation
indebtedness. The two types are primarily differentiated by the limits on the real and personal property
taxes which may be collected for the payment thereof.
Limited tax general obligation indebtedness is payable from taxes upon all the taxable property in the City
which may be imposed by the City within the limitations prescribed by State statute without a vote of the
people (sometimes referred to as "non-voted debt" or "non-voted bonds" or "councilmanic bonds or
notes"). The statutory limits on the levy of such taxes are described in the section herein entitled "lIMITS
ON AMOUNT OF GENERAL OBLIGATION INDEBTEDNESS."
Unlimited tax general obligation indebtedness is payable from taxes without limitation as to rate or
amount, imposed upon all taxable property in the City. Unlimited tax indebtedness may be incurred only
after approval by 60% of the City voters at an election in which the total vote cast exceeds 40% of the
votes cast at the last preceding general election of the City or State. Such unlimited tax indebtedness is
sometimes referred to as "voted debt," "voted bonds" or "unlimited tax bonds."
Bonds issued to refund outstanding general obligation indebtedness of either type may be issued without
voter approval.
LIMITS ON AMOUNT OF GENERAL OBLIGATION INDEBTEDNESS
State statutes limit the total principal amount of all City general obligation indebtedness incurred for
"general" purposes, both limited tax and unlimited tax, to 2.5% of the actual value of taxable property
within the City. Within this 2.5% limitation, non-voted indebtedness is further limited to 1.5% of the
value of such taxable property.
The City is additionally authorized to incur general obligation indebtedness for the following "special"
purposes, with voter approval, in the total principal amount of up to the following percentages of the
actual value of taxable property within the City: water, artificial light and sewers: 2.5%; open space and
park facilities: 2.5%. The combination of unlimited tax and limited tax general obligation debt for all
purposes cannot exceed 7.5% of the City's assessed valuation.
The State statutory limits on City general obligation indebtedness described in this section are more
restrictive than those contained in the State Constitution. Both the Constitutional and statutory debt limits
may be exceeded if necessary to meet obligations made mandatory by State law or, if necessary, to
maintain the corporate existence of the City.
In computing total general obligation indebtedness, the following "assets" may be deducted against the
principal amount of indebtedness outstanding: (a) money and investments on deposit in general obligation
bond retirement funds: (b) taxes (both current and delinquent) levied for the payment of general
obligation indebtedness; and (c) delinquent (but not current) taxes due the general fund.
In addition to limits on the total principal amount of general obligation indebtedness described in this
section, the Constitution and statutes of the State impose other limitations on the City's levy of taxes
upon real and personal property. (See section herein entitled "TAXING POWERS AND LIMITATIONS".)
AUTHORIZATION OF SHORT-TERM DEBT
As a result of 1982 legislation, any Washington municipal corporation may borrow money and issue
short-term obligations, the proceeds of which may be used for any lawful purpose. Short-term obligations
may be issued in anticipation of the receipt of revenues, taxes, or grants or the sale of (1) general
obligation bonds if the bonds may be issued without the consent of the voters or if previously ratified by
the voters; (2) revenue bonds if the bonds have been authorized by ordinance or resolution; or (3) local
improvement district bonds if the bonds have been authorized by ordinance or resolution. These short-
term obligations shall be repaid out of money derived from the source or sources in anticipation of which
they were issued or from any money legally available for this purpose.
Additionally, the City may incur short-term indebtedness in the following ways: first, in an emergency, the
Council members may put a plan into effect and authorize indebtedness outside the current budget. All
expenditures for emergency purpose shall be paid by warrants form any available money in the fund
properly chargeable with such expenditures. If there is insufficient money on hand in the fund, the
warrants become registered interest-bearing warrants. In adopting the budget for any fiscal year, the
Council members shall appropriate funds to retire any outstanding registered warrants issued since the
adoption of the last preceding budget. Second, the City may, without a vote of the electors, purchase
property on a conditional sales contract if the total contract amount, together with the other non-voted
general obligation indebtedness of the City, does not exceed 3/4 of 1% of the value of taxable property in
the City; any item so purchased must be budgeted for payment in accordance with the terms of the
contract.
TAXING POWERS AND LIMITATIONS
Pursuant to Chapter 84.52.043 RCW, cities may levy, without a vote of the residents residing therein, a
maximum of $3.375 per thousand for general city purposes (the "regular levy"). Cities with full-time
firemen may levy an additional $.225 per thousand to fund the city's Fireman's Pension Fund (Chapter
41.16.060 RCW), thus creating a maximum annual levy rate of $3.60 per thousand. The City is levying
$3.325 per $1,000 of taxable assessed valuation for its regular levy in 2000.
6
According to RCW 27.12.390, any city or town annexed to a rural library district, island library district,
or inter-county rural library district, such as the City, shall be entitled to levy up to $3.60 per thousand
dollars of assessed valuation less any regular levy made by such library district in the incorporated area,
notwithstanding any other provision of law.
A city's regular property taxes are subject to the provisions of a state statute limiting the growth of annual
property taxes (RCW 84.55.010). The limitation, which was amended by the Property Tax Act (enacted
as Senate Bill 5835 by the Washington Legislature in 1997 and adopted and ratified at the November
1997 general election) provides that the regular property taxes payable in the following year shall not
exceed the amount of the single highest regular levy amount lawfully levied by the municipal entity in the
three immediately preceding calendar years multiplied by a limit factor, plus an additional amount due to
the incremental assessed valuation increase in the municipal entity caused by new construction and
property improvements. The limit factor is defined in the Property Tax Act as (i) the lesser of 106% or
100% plus inflation, or (ii) any amount up to 106% if approved by a majority plus one vote of the
governing body of the municipality upon a finding of substantial need. The regular property taxes levied
by a city may be increased above the limit factor upon the affirmative vote of a majority of the voters
residing in the municipal entity at an election held for such purposes (RCW 84.55.050).
Initiative No. 695
In addition to the foregoing, at the November 2, 1999 general election, Washington state voters approved
Initiative No. 695 ("Initiative 695" or the "Initiative"). Beginning January 1, 2000, Initiative 695 requires
voter approval for any new or increased taxes or fees proposed by state, county, or local governments.
Initiative 695 imposes new voter approval requirements for tax increases. "Tax" is defined in Initiative
695 to include, but not be limited to, (i) sales and use taxes, (ii) property taxes, (iii) business and
occupation taxes, (iv) excise taxes, (v) fuel taxes, (vi) impact fees, (vii) license fees, (viii) permit fees, and
(ix) any monetary charge by government, but specifically excludes higher education tuition and civil and
criminal fines and other charges collected in cases of restitution or violation of law or contract. "Tax
increase" includes, but is not limited to, a new tax, a monetary increase in an existing tax, a tax rate
increase, an expansion in the legal definition of a tax base, and an extension of an expiring tax. Initiative
695 also repeals the state motor vehicle excise tax, the state camper and trailer tax, and the state clean air
tax.
To date three lawsuits have been filed challenging the constitutionality of Initiative 695. Media reports
indicate that additional lawsuits are likely to be filed in the near future. The outcome of such lawsuits
cannot be predicted at this time. The City does not anticipate the need to increase any tax, fee or charge
in order to make timely payment of principal and interest on the Notes.
The City, along with the City of Bainbridge Island, has filed suit challenging the constitutionality of
Initiative No. 695 in Thurston County Superior Court (the "Court"). The suit also seeks clarification of
certain provisions of the Initiative. Three forms of relief are being sought: (i) that the Court declare that
Initiative 695 violates the State Constitution and is therefore, null & void and (ii) that the Court enjoin
the State of Washington and its officials from complying with any provision of Initiative 695, and (iii) that
the Court declare that Initiative 695 does not impair the City's authority to increase charges for goods and
proprietary services provided by the City. The outcome of this lawsuit and the Court interpretation of the
Initiative are not known at this time. The City does not anticipate the need to increase any tax, fee or
charge in order to make timely payment of principal and interest on the Notes.
The extent of the impacts of Initiative 695 in the City cannot be predicted, although the City will likely be
required to seek voter approval for any tax increase after January 1, 2000. The City projects the impact
of 1-695 in 2000 to be a reduction of approximately $500,000 in its Street Fund and General Fund
combined, and has adjusted its 2000 budget accordingly.
AUDITING OF CITY FINANCES
The State Auditor is required to examine the affairs of cities at least once every two years. The
examination must include, among other things, the financial condition and resources of the City, whether
7
the laws and constitution of the State are being complied with, and the methods and accuracy of the
accounts and reports of the City. Reports of the Auditor's examinations are required to be fried 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 agencyg 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 agreementsg in the obligations
of the federal home loan bank, federal national mortgage association and other government corporations
subject to statutory provisions. Utility revenue bonds and warrants of any city and bonds or warrants of a
local improvement district are also eligible investments (RCW 35.39.030).
Any municipal corporation, including the City, may authorize the investment of funds not required for
immediate expenditure by the County Treasurer. Such funds of the City, including debt service funds,
may be invested by the County Treasurer. The County Treasurer may, upon the request of one or more
units of local government that invest their money with the County, combine those monies for the
purposes of investment (RCW 36.29.022). The office of the County Treasurer receives up to five
percent of the earnings on such investments, subject to a maximum of fiRy dollars on each transaction, as
its investment service fee The County Treasurer may reimburse its office for any expenses incurred in
the establishment and maintenance of such a County investment pool (RCW 36.29.024).
Local Government Investment Pool
The State Treasurer's Office administers the Washington State Local Government Investment Pool (the
"LGIP"), a $1.25 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 two highest rating categories. Bond proceeds may also be invested in shares of money market
funds with portfolios of securities otherwise authorized by law for investment by local governments
(RCW 39.59.030).
The City's Investments
The investments of the City, except those of the Community Development Block G-rant Fund, are
managed in a pooled format. Interest earnings are distributed monthly to the individual funds based on
their respective balances at the beginning of the month. These pooled investments are classified on the
balance sheet as cash and equivalents. As required by state statue, all investments and deposits of the
City's funds are obligations of the U.S. Government, U.S. agency issues, deposits with the State
Treasurer's Investment Pool, prime bankers' acceptances, deposits with Washington State banks and
savings and loan institutions or repurchase agreements with authorized securities as collateral.
NET DIRECT DEBT AND ESTIMATED NET
OVERLAPPING GENERAL OBLIGATION DEBT~
(As of November 30, 1999)
Direct Debt:
Voted General Obligation Bonds Outstanding ...................... $ l, 175,000
Non-Voted Bonds Outstanding ............................................ 7,885,000
The Notes ............................................................................. 1,250,000
Bank Line of Credit Balance Outstanding ............................. 1,706
Bank Loan Outstanding ........................................................ 75,758
Less: Debt Service Fund Balance .......................................... (254,441)
Net Direct Debt ..................................................... $ 10,133,023
Estimated Net Overlapping Debt:
Net G.O. Debt Percent of Amount of
Outstanding Overlap Overlap
Kitsap County $ 55,469,824 11.05% $ 6,129,416
Port of Bremerton 4,165,0002 25.95 1,080,818
Bremerton Sch. Dist. No. 100-C 25,820,000 73.98 19,101,636
Central Kitsap Sch. Dist. No. 401 83,440,000 1.09 909,496
South Kitsap Sch. Dist. No. 402 8,290,000 0.13 10,777
Estimated Net Overlapping Debt: .......................................... $ 27,232,143
Net Direct Plus Estimated Net Overlapping Debt: ....................................... $ 37,365,166
BONDED DEBT RATIOS OF THE CITY
Preliminary Assessed Valuation for Collection Year 20003 ........................ $ 1,410,346,767
Estimated City Population (1999)4 ............................................................. 36,888
Assessed Valuation Per Capita .................................................................. $ 38,233
Net Direct Debt to Assessed Valuation ......................................................... 72%
Net Direct and Estimated Overlapping Debt to Assessed Valuation ........... 2.65%
Net Direct Debt Per Capita ....................................................................... $ 275
Net Direct and Estimated Overlapping Debt Per Capita ............................. $ 1,013
I Reflects the issuance of the Notes.
2 Figure is as of December 31, 1999.
3 Assessed valuation for tax collection year 2000 is stated as the full assessed value of all taxable real and
personal property m the City.
4 Source: Washington State Office of Financial Management (August 1999).
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STATUTORY DEBT LIMIT CALCULATION~
(As of November 30, 1999)
Preliminary 1999 Assessed Valuation for Collection Year 2000 ......................... $ 1,4]0,346,767
I. General Purposes
a. Non-Voted Indebtedness Limit (1.5% of Assessed Valuation) ............. $ 21,155,202
Less: Non-Voted Bonds Outstanding .............................................. (7,885,000)
Less: The Notes .............................................................................. (1,250,000)
Less: Bank Line of Credit Balance Outstanding ............................... (1,706)
Less: Bank Loan Outstanding ......................................................... (75,758)
Plus: Cash and Investments in Debt Service Funds .......................... 254,441
Remaining Capacity for General Purposes (Non-voted) ............. $ 12,197,179
b. Voted Indebtedness Limit (2.5% of Assessed Valuation) .....................$ 35,258,669
Less: Voted Bonds Outstanding ...................................................... (1,175,000)
Less: Non-Voted Bonds Outstanding .............................................. (7,885,000)
Less: The Notes .............................................................................. (1,250,000)
Less: Bank Line of Credit Balance Outstanding ............................... (1,706)
Less: Bank Loan Outstanding ......................................................... (75,758)
Plus: Cash and Investments in Debt Service Funds .......................... 254,441
Remaining Capacity for General Purposes (Voted) ....................$ 25,125,646
II. Utility Purposes (2.5°/. of Assessed Valuation)
Limit ................................................................................................. $ 35,258,669
Less: Bonds Outstanding ................................................................... 0
Remaining Capacity for Utility Purposes ................................... $ 35,258,669
III. Parks and Open Space Purposes (2.5% of Assessed Valuation)
Limit ................................................................................................. $ 35,258,669
Less: Bonds Outstanding ................................................................... 0
Remaining Capacity for Parks and Open Space Purposes ........... $ 35,258,669
I Reflects the issuance of the Notes.
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AD VALOREM TAX RECORD OF THE CITYl
Collected as of
Collection Taxable Assessed Tax Collected Year of Levy November 30~ 1999
2 3
Year Valuation Levy Amount Percent Amount Percent
2000 $ 1,410,346.7674 NA5 NA5 NA5 NA5 NA5
1999 1,343,271.067 $ 5,431,058 $ 5,171,287~ 95.23%6 $ 5,171,827 95.23%
1998 1.345,904,065 5,450,559 5,219,429 95.76 5,353,171 98.21
1997 1.299,548,001 4,953,030 4,715,897 95.21 4,905,562 99.04
1996 1,223,940,521 4,686,230 4,482,747 95.66 4,676,099 99.78
1995 1,203,299,197 4,480,427 4,265,158 95.20 4,477,225 99.93
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 I. 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 School County Bremertor 100C PUD Services Library Total
1999 $ 3.3250 $ 0.2126 $ 3.3178 $ 1.8125 $ 0.4814 $ 5.1422 $ 0.1017 $ 0.500C $ 0.5000 $ 15.3932
1998 3.3250 0.2218 3.5911 1.3908 0.4624 5.0292 O. iOE 0.500( 0.5000 15.1220
1997 3.3469 0.2153 3.646; 1.6641 0.4338 5.1331 0.099~ 0.250( 0.9781 15.7678
1996 3.3573 0.2255 3.484~ 1.6347 0.4287 5.1551 0.093[ 0.250( 0.4677 15.0977
1995 3.2470 0.2308 3.550~ 1.2249 0.4079 2.1387 0.094( 0.250( 0.4595 11.6036
1 Source: Kit,sap County Treasurer
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 Preliminary, subject to change.
5 Not available.
6 Does not include December 1999 collections.
12
COMPARATIVE STATEMENT OF GENERAL FUND
REVENUES AND EXPENDITURES1
(Fiscal Year Ending December 31)
1998 1997 1996 1995 1994
Revenues:
T~Lxes $ 16,201,397 $ 15,678,923 $15,498,917 $ 14,501,567 $ 14,137,828
Licenses & Permits 314,340 348,796 312,203 298,989 390,454
Intergovernmental 1.027,234 812,436 742,432 847,272 728,407
Charges for Services 1,596,652 1,762,945 1,864,848 1,783,646 1,394,815
Fines & Forfeits 446,715 512,828 433,775 483,964 593,093
Miscellaneous 383,402 290,343 342,700 248,743 240,672
TotaIRevenues $ 19,969,740 $ 19,406,271 $19,194.875 $ 18,164,181 $ 17,485,269
Expenditures:
General Government $ 4,075,157 $ 4,199,525 $ 5,313,516 $ 5,009,311 $ 4,843,656
Security of Persons & Prop. 11,685,742 10,893,020 9,313,570 8,614,262 8,219,945
Physical Environment 555,693 613,338 942,764 848,346 587,931
Transportation 986,816 923,064 959,327 850,639 840,530
Economic Environment 862,864 507,996 276,689 454,250 514,320
Mental & Physical Health 24,632 24,632 30,818 264,239 250,493
Culture & Recreation 1,780,180 1,768,867 1,867,204 1,566,669 1,426,763
Redemption of Gen. L.T. Debt 4,194 2,688 0 0 24,672
Debt Service 57,478 74,055 85,540 59,860 44,593
Capital Outlay 208,697 298,438 404,888 486,005 385,414
TotalExpenditures $ 20,241,453 $19,305,623 $19,194,316 $ 18,153,581 $ 17,138,317
Other Financing Sources
Operating Transfers In $ 251,251 $ 113,144 $ 196,725 $ 6,000 $ 6,000
Operating Transfers Out (397,428) (406,836) (357,180~ (307,836) (398,3761
General Fixed Assets Disp. 15,316 15,568 36,671 2,886 59,640
Proceeds of Gen. L.T. Debt 0 16,629 237.700 0 0
TotaIOther Financing Sources (Uses) $ (130,861) $ (261,495) $ 113,916 $ (298,950) $ (332,736)
Fund Balance, Januaryl $ 701,726 $ 861,135 $ 709,671 $ 1,064,368 $ (44,548',
Prior Year's Corrections 0 0 0 0 0
Residual Equity Transfers 0 0 6,994 (65,128) 9,717
Other Equity Changes 15,332 1,438 30,554 (1,219) 1,084,983
TOTAL ENDING FUNO BALANCE $ 314,484 $ 701:726 $ 861:135 $ 709,671 $ 1,064:368
CONTINGENCY RESERVE FUND
YEAR-END BALANCES~?
1998 1997 1996 1996 1994
ENDING FUND BALANCE $ 709,162 $ 706,947 $ 673,110 $ 709,040 $ 704,922
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 this balance is transferred to the General Fund m the following year.
13
GENERAL FUND BUDGET
FOR 1999 AND 20003
(Fiscal Year Ending December 31)
1999 200O
REVENUES
Beginning Fund Balance ..................................................... $ 535,000 $ 500,000
Taxes .................................................................................. 16,569,500 16,929,500
Licenses and Permits .......................................................... 343,480 348,480
Intergovernmental Revenue ................................................ 1,057,811 1,044,609
Charges for Services ........................................................... 1,739,205 1,761,711
Fines and Forfeitures .......................................................... 536,600 536,600
Miscellaneous and Other .................................................... 3,057,345 3,035,172
Total Re¥,nue .................................................................... $ 23.838.941 $ 24,156,072
EXPENDITURES
General Government
City Council ....................................................................... $ 166,397 $ 167,231
Executive ............................................................................ 160,297 161,577
Administrative Services2 .................................................... 2,088,385 2,112,583
Police & Fire Pension .................................................. 1,513,337 1,554,786
Intergovernmental Service ...........................................134,447 134,447
Misc. Non-Departmental ............................................. 1,347,387 1,297,578
Legal Department ............................................................... 501,756 505,281
Human Resources ............................................................... 205,352 208,348
Community Development ................................................... 709,457 712,021
City. Auditor ....................................................................... 85,426 87,709
Public Safety
Police Department .............................................................. 6,269,049 6,448,232
Fire Department ................................................................. 4,218,965 4,234,482
Public Works
General Facilities ................................................................ 418,171 434,979
Engineering ........................................................................ 351,178 339,827
Transportation .................................................................... 1,165,008 1,200,853
Leisure Services
General Parks ................................................... ~ ................. 1,054,511 1,097,874
Recreation .......................................................................... 221,692 222,066
Senior Center ...................................................................... 171,668 171,487
Pool .................................................................................... 293,328 300,874
Cemetery Services .............................................................. 72,025 71,831
Athletics ............................................................................. 191,105 192,006
Tax Anticipation Note Debt Service .................................. 2,500,000 2,500,000
Total Current Expenditures ............................................. $ 23,838,941 $ 24~156..072
I Source: City of Bremerton. Figures reflect the adopted biennial Budget and do not reflect adjustments made as a result of the
impact of Initiative No. 6951 See "TAXING POWERS AND LIMITATIONS - Initiative No. 695" hexein.
2 City Clerk, Treasurer, Information Services, Municipal Court and Risk Management are combined under Administrative Services.
14
SCHEDULE OF GENERAL OBLIGATION BOND DEBT SERVICE FOR THE CITY!
(As of December 31)
Outstanding Outstanding Non-Voted
Voted General Obligation Bonds General Obligation Bonds Total
Year Principal Interest Principal Interest All Bonds
2000 $ 170.000 $ 48,353 $ 450,000 $ 420, I55 $ 1,088,508
2001 185,000 40,805 350,000 395,413 971,218
2002 190,000 32,647 365,000 378,555 966,202
2003 205,000 23,906 380,000 360,595 969,501
2004 135,000 16,308 405,000 341,520 897,828
2005 140,000 10,085 425,000 320,860 895,945
2006 150,000 3,450 445,000 298,395 896,845
2007 0 0 465,000 274,210 739,210
2008 0 0 495,000 248,722 743,722
2009 0 0 520,000 221,168 741,168
2010 0 0 555,000 191,952 746,952
2011 0 0 590,000 160,135 750,135
2012 0 0 540,000 126,160 666,160
2013 0 0 280,000 97,505 377,505
2014 0 0 300,000 83,505 383,505
2015 0 0 300,000 68,355 368,355
2016 0 0 325,000 53,055 378,055
2017 0 0 340,000 36,318 376,318
2018 0 0 355,000 18,637 373,637
Total $ 1,175,000 $ $ 7.885.00~0 $ 4.095.21~5 $ 13:330,7~
175,534
CITY PROFILE
City was incorporated in 1901 and operates as Home Rule Charter City with a Mayor Council form
government. The Council is comprised of nine members, elected by district by the citizens of the City,
serving a four-year term. The Council Members are part-time elected officials who exercise the
legislative powers of the City and determine matters of policy. The Mayor, a full-time elected official, is
chief executive officer of the City. The Officers and department directors are appointed by the mayor
Council approval.
City provides a full range of municipal services including fire and police protection, parks and
recreation facilities/activities, streets, planning, zoning and general administrative services. The City
operates water, sewer and stormwater utility systems. Currently, there are 322 full-time employees of the
not include the Notes.
15
Key Personnel
Lynn Horton, Mayor: Ms. Horton began her second term as Mayor of the City in 1998. Before her
election as mayor, she served for six years on the Bremerton City Council. She is the past Chair and
current Board Member of the Kitsap Regional Planning Council, and a board member of Kitsap Transit,
Kitsap County Cen-Com and the Bremerton-Kitsap County Health Department. Ms. Horton is a
graduate of the University of Washington and has been a resident of the City since 1974.
Richard Hanna, City Treasurer: Mr. Hanna has been the Treasurer of the City of Bremerton since 1986.
Before joining the City, he was Treasurer of the City of Centralia, Washington. Mr. Hanna received his
Bachelor's Degree in Accounting from Western Washington University in 1974 and a Masters of
Business Administration Degree in Finance from University of Puget Sound in 1983. Mr. Hanna is a
member of the Washington Finance Officers Association, Washington Municipal Treasurers Association
and Puget Sound Finance Officers Association.
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 3 yr. 12/31/99'
Police Management Association 5 3 yr. 12/31/99'
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.
16
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 had an estimated 1999 population of 36,888. Kitsap County, covering 393 square miles of land, also
includes the following other incorporated areas: Bainbridge Island (1999 population 19,840), Port
Orchard (1999 population 7,255) and Poulsbo (1999 population 6,455).
Military Presence
The economy of the City is closely tied to the United States Navy. 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 8,194 civilian employees, 8,900 military 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
Industrial Supply Center is another local military facility in the City, with about 200 employees.
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 3,800 civilians, and 5,200 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 Word Service, with 800 employees. GEC Marconi (formerly Tracor) is the second
largest, with 350 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 approximately 1,390 civilian and 30 military personnel.
U.S. Navy Projects in Kitsap County
Recent historical and projected spending for Navy construction and related facilities support work in
Kitsap County provided by the U.S. Navy Engineering Field Activity Northwest office as follows:
Kitsap County
Fiscal Year Amount (millions)
2000 $ 109.3
1999 115.8
1998 127.8
1997 142.3
1996 192.3
1995 200.7
The $250.5 billion defense spending bill approved by Congress in September of 1998, includes the
following projects for Kitsap County military facilities:
17
Amount
Project Location (millions)
Innovative wastewatcr treatment research program PSNS $ 7.0
Development of an environmentally safe and inexpensive way to eradicate asbestos PSNS 4.0
Additional ship repair and maintenance projects* PSNS and others 30.0
Strengthening of apprenticeship program PSNS 3.5
Impact aid to education provided to Washington State (to offset loss of local tax
base because of military, installations) Kitsap Co. 1.9
Expansion of Naval Hospital Bremerton Bremerton 28.0
Security. Force Building at Strategic Weapons Facility Pacific Bangor 2.8
Facility. for housing the Navy's Disease Vector, Ecology and Control Center Bangor 5.7
Communi .ty Support Facility, at Jackson Park Naval Housing Bangor 4.3
* A supplemmtal Defense Bill, e,xpected to be passed later in the 1998-99 fiscal year, will include another $60 million tbr naval ship repair.
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 34
firms which employ a total of approximately 350 people. The Port's facilities are designated as a foreign
trade zone which offers duty savings to its tenants.
Bremerton National Airport is the largest airport in the County, with a 6,200-foot runway and full
instrumentation and lighting systems. The airport can handle all general aviation aircraft and most
transport and military planes. Charter passenger and air freight services are available to SeaTac Airport,
the major international airport in the Puget Sound area. The Bremcrton Airport has recently undergone
improvements.
Health care needs are met by several facilities in the Bremerton area including the Naval Hospital -
Bremerton with 360 civilian and 700 military serving approximately 2,500 military family members. Over
the past few years, the Naval Hospital was renovated and expanded. Harrison Memorial Hospital in
Bremerton has 1,164 employees. A $24 million expansion project is scheduled for completion at the
Hospital in 2003. 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 250 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 branch campus of the college is planned for development in the Poulsbo
area.
Housing
Kitsap County home sales in 1998 totaled 3,2J6, excluding condominiums, up from 2,660 in 1997.
Home listings averaged a listing time before sale of 92 days compared with 139 days in 1997. A total of
1,431 residential building permits were applied for in 1998 compared with 1,541 in 1997. Residences in
the County are relatively affordable as the 4th quarter 1998 median home price was $140,000, compared
to the statewide average of $161,800.
Employment
In 1998, the average resident civilian labor force in the County was estimated at 91,300. Of these, 86,500
were employed, and an estimated 4,800 were unemployed. The unemployment rate was 5.3% in the
County, compared with 6.7% in 1995 and 1996. The unemployment rate for the County in 1998 was the
lowest it has been in seven years.
18
Non-manufacturing employment in the County accounted for 96.8% of the non-agricultural wage and
salary jobs in 1999, and manufacturing accounted for 3.2% of employment in 1999, employing a total of
2,300 workers.
The largest employment sector in the County in 1999 was government, with 35.9% of all jobs; in 1984
this sector employed 40% of the total, which is evidence of continued economic diversification.
Wholesale and retail trade accounted for 22.9% of jobs in 1999, and services comprise the third largest
employment sector, with 25.5% of all jobs.
All three of the major military installations in Kitsap County have been decreasing their work force since
the peak in 1992. Since that time the civilian work force has gone from 22,548 for the three facilities
combined to 14,404, currently, a decrease of 56.5%.
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 will serve Bremerton (one is already in service), 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 in 1998. The future use of and expansion of foot passenger
ferry service is unknown at this time due to voter approval of Initiative No. 695 in November of
1999. See "TAXING POWERS AND LIMITATIONS - Intiative No. 695" herein. The City is also
expecting that some level of private development will compliment the transportation facility. No
proposed plans have yet been approved by the City.
· 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 site work has begun.
· A 34-unit congregate care facility was recently completed in the City.
· At the Olympic View Industrial Park, Custom Camera Design, a recycler of disposable cameras, is
constructing two 8,500 square-foot buildings, and expects to employ about 150 people.
· Romark, Inc., a manufacturer of custom closets, located at the Olympic View Industrial Park in late
summer of 1998 in a 6,000 square-foot facility with 12 employees. The company is already
expanding by another 3,000 square-feet and will add several new employees as well.
· Today Chevrolet is constructing a 30,000 square-foot auto-complex in the City, which includes
parking lots.
· A combination of Port and private business development at the Olympic View Industrial Park
includes nine construction projects that began in 1999. Phase I of the Northeast Campus, with eight
buildings, a road extension and utilities is now under construction, with total buildout of the 29-acre
site to eventually include over 20 building sites. The Port also expects to construct a multi-tenant,
small business incubator building, which will house between 12 and 20 expanding or new businesses.
· The Port is planning to develop a light industrial area known as the West Puget Tech Park, which will
be developed at the Olympic View Industrial Park. The first phase includes a 24,000 square-foot
business development center, and the remainder of this project will be developed on a demand basis.
· In 1998, 569 building permits were issued in the City for a total value of $19.1 million. This
compares with annual totals of 508 permits in 1997 valued at $19.4 million and 511 permits in 1996
valued at $15.8 million.
· 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
19
project could include several hundred housing units with parking and other amenities to attract and be
suitable for home-based businesses. As many as 9,000 jobs could be associated with the project,
which is currently in the planning stage.
· The Bremerton Gateway Project is a $40 million multi-year traffic modification under construction
for the City's main entry corridor. Included in the project are beautification, traffic improvement,
street widening and related projects designed to improve the first impression upon entering the City.
A portion of the funding for the project was allocated from the State's motor excise vehicle tax,
which is expected to be dramatically reduced with the implementation of provisions in Initiative No.
695. The extent of the reduction to this portion of the funding for the project is not known at this
time. See "TAXING POWERS AND LIMITATIONS - Initiative No. 695" herein.
· 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. Construction of the industrial component may begin
as early as summer of 2000.
Following are economic indicators of the City and the County.
KITSAP COUNTY POPULATION1
Kitsap
City of Other Kitsap County County
Year Bremerton Incorporated Unincorporated Total
1999 36,888 33,540 159,890 229,700
1998 37,260 32,615 159,125 229,000
1997 38,600 32,060 158,740 229,400
1996 38,496 31,210 155,120 224,700
1995 39,6 I0 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 26,6392 132,821 196,500
1990 38,142 12,913 138,676 189,731
TAXABLE RETAIL SALES3
Year Kitsap County City of Bremerton
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
1994 1,774,185,000 461,026,409
1 Source: Washington State Office of Financial Management and U.S. Census. The 1999 figure for the City was provided
by the City.
2 The large increase is due to the annexation of the unincorporated areas of Bainbridge Island to the new City of Bainbridge Island.
3 Source: Washington State Department of Revenue.
20
SEATTLE-BREMERTON FERRY TRAFFIC STATISTICSt
Year Number of Vehicles Number of Passengers
t 998 714,903 2,211,641
1997 756,796 2,047.014
1996 731,926 1,863,596
1995 751,266 1,820,433
1994 719,125 1,719,414
KITSAP COUNTY AND WASHINGTON STATE
LABOR FORCE AND AVERAGE ANNUAL UNEMPLOYMENT2
Resident Civilian Average Annual Total
Year Labor Force Unemployment Employment Kitsap County (~ Washington (°/~
19983 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
1994 88,600 5,300 83,300 6.0 6.4
KITSAP COUNTY AND WASHINGTON STATE INCOME ESTIMATES4
KRsap County Per Capita Income
Year Personal Income ($000} Kitsap County Washington
1997 $ 5,053,352 $ 21,580 $ 26,451
1996 4,755,715 20,597 24,958
1995 4,516,914 20.006 23,677
KITSAP COUNTY MAJOR PRIVATE SECTOR EMPLOYERS5
No. of
Employer Employees
Harrison Memorial Hospital 1,164
Johnson Controls World Services6 800
Safeway 608
Wal-Mart 3007
Laurier Enterprises (McDonald's) 430
GEC Marconi (formerly, Tracor)2 370
Town & Countny Markets 252
Fred Meyer 240
Martha & Mary Nursing/Child Care 350
Group Health Cooperative 200
The Doctors Clinic 300
Belmont Terrace & Ridgemont Terrace 245
Costco Wholesale 240
I Source: Washington State Department of Transportation, Marine Division. Passengers total includes the passenger-only femes and
vehicle femes.
2 Includes nonagricultural wage and salary, self-employed, unpaid family workers, domestics, agricultural workers, labor disputants.
3 1998 figures are all preliminary.
4 Source: U.S. Bureau of Economic Analysis; presented in 1997 dollars.
5 Source: Kitsap County Economic Development Council as of May 1999.
6 Private companies handling major contracts with the U.S. Department of Defense
7 Estimated.
21
KITSAP COUNTY MAJOR PUBLIC AGENCY EMPLOYERS!
Employer No. of
Employees
Puget Sound Naval Shipyard2 8,194
Naval Submarine Base Bangor2 3,800
State agencies (Dept. of Revenue, 1,891
Emplo. vrnent Securi.tv, Social & Health
Services, Transportation, State Patrol)
Central Kitsap School District 1,637
Naval Undersea Warfare Center~ 1,390
South Kitsap School District 1,100
North Kitsap School District 1,100
Kitsap Coun .ty 1,050
North Kitsap School District 873
Bremerton School District 750
Ci.ty of Bremerton 336
Olympic College 250
Bainbridge Island School District 243
PRESERVATION OF TAX EXEMPTION
The City has covenanted, in the Ordinance, to take all actions necessary to prevent interest on the Notes
from being included in gross income for federal income tax purpose, and it will neither take any action
nor make or permit any use of proceeds of the Notes or other funds of the City at any time during the
term of the Notes which will cause interest on the Notes to be included in gross income for federal
income tax purposes. The City certifies that it has not been notified of any listing or proposed listing by
the Internal Revenue Service to the effect that it is a bond issuer whose arbitrage certifications may not be
relied upon.
CONFLICTS OF INTEREST
Some or all of the fees of the Underwriter and Bond Counsel are contingent upon the issuance and sale of
the Notes. Furthermore, Bond Counsel from time to time serves as counsel to the Underwriter with
respect to issuers other than the City and transactions other than the issuance of the Notes. None of the
council members or other officers of the City has interests in the issuance of the Notes that are prohibited
by applicable law.
TAX EXEMPTION
In the opinion of Gottlieb, Fisher & Andrews, PLLC, Bond Counsel, as of the date of issue of the Notes
(the "Date of Issue"), and provided the City complies with applicable requirements of the Code which
must be satisfied subsequent to the issuance thereof, interest on the Notes is excluded from gross income
for federal income tax purposes under existing federal law; and such interest is not an item of tax
preference for purposes of determining the alternative minimum tax on individuals and corporations under
existing federal law. However, under existing federal laws, interest on the Notes received by certain
corporations is to be taken into account in the computation of adjusted current earnings for purposes of
1 Source: Kitsap County Economic Development Council as of May 1999.
2 Excludes military personnel.
22
calculating the alternative minimum tax applicable to such corporations; such interest received by certain
S corporations may be subject to tax; and such interest received by foreign corporations with United
States branches may be subject to a foreign branch profits tax. Bond Counsel expresses no opinion
regarding any other federal tax consequences of receipt Of interest on the Notes. Potential purchasers of
the Notes should consult with their tax advisors as to all possible tax consequences of ownership of the
Notes. See also, "OTHER TAX CONSEQUENCES," herein.
The Code contains certain requirements which must be satisfied subsequent to the issuance of the Notes
in order to maintain the tax treatment described above, including requirements relating to the application
of the proceeds of the Notes, use of facilities which are financed with such proceeds, limitations on
income derived from the investment of gross proceeds of the Notes (as defined in Section 148 of the
Code), and rebate to the United States Treasury of certain of such investment income on such gross
proceeds. The City has covenanted to comply with these requirements; and the opinion expressed by
Bond Counsel and described in the preceding paragraph assumes such compliance. However, Bond
Counsel has not undertaken and does not undertake to monitor compliance by the City with such
requirements and if the City should fail to comply with such requirements interest on the Notes could
become includable in gross income for federal income tax purposes, in each case, retroactive to the Date
of Issue.
OTHER TAX CONSEQUENCES
Under current federal law:
1. Corporate Alternative Minimum Tax. The interest on tax-exempt obligations received by a
corporation is taken into account in the computation of the alternative minimum tax applicable to
corporations (as defined for federal income tax purposes). Under current federal law, the alternative
minimum taxable income of such a corporation (other than an S corporation, a regulated investment
company, a real estate investment trust or a REMIC) is increased by 75% of the amount by which the
"adjusted current earnings" of the corporation exceeds the corporation's alternative minimum taxable
income determined without regard to such increase and any alternative tax net operating loss
deduction. Interest on tax-exempt obligations, whenever issued or acquired, including interest on the
Notes, is included in the computation of "adjusted net book income" and "adjusted current earnings."
2. Tax on Excess Passive Investment Income of S Corporations. Certain excess net passive
investment income, including interest on the Notes, received by an S corporation (a corporation
treated as a partnership for most federal tax purposes) that has "subchapter C earnings and profits" at
the close of its taxable year may be subject to federal income tax at the highest rate applicable to
corporations if more than 25% of the gross receipts of such S corporation for such taxable year is
passive investment income.
3. Foreign Corporation Branch Profits Tax. Interest on the Notes received by certain foreign
corporations doing business in the United States may be subject to a branch profits tax applicable to
such corporations that is based on their Untied States source earnings and profits, including tax-
exempt interest on obligations such as the Notes.
4. Elimination of Interest Deduction for Financial Institutions. The Notes are not "qualified tax-
exempt obligations" for purposes of the 80 percent financial institution interest expense deduction
permitted pursuant to the Code. None of the interest expense incurred by banks and other financial
institutions allocable to the purchase or carrying of the Notes may be deducted by such institutions.
5. Reduction of Loss Deduction for Property and Casualty Insurance Companies. Interest on tax-
exempt obligations, including the Notes, received by property and casualty insurance companies, will
reduce tax deductions for loss reserves otherwise available to such companies by an amount equal to
15 percent of such tax-exempt interest received during the taxable year.
6. Social Security and Tier 1 Railroad Retirement Benefits Subject to Tax. Interest received or
accrued during the year from tax-exempt obligations, such as the Notes, is included in the calculation
of"modified adjusted gross income" of recipients of the social security or tier 1 railroad retirement
benefits. If the sum of the "modified adjusted gross income" for the taxable year plus one-half of the
social security or tier 1 railroad retirement benefits received during the taxable year exceeds a base
23
amount provided by the Code (the "excess amount"), then the lesser of (i) one-half of the social
security or tier 1 railroad retirement benefits received during the taxable year or (ii) one-half of the
~'excess amount", is included in the gross income of the social security or tier 1 railroad retirement
benefit recipient.
ABSENCE OF MATERIAL LITIGATION
There is no litigation of any kind now pending or, to the knowledge of the City, threatened to restrain or
enjoin the issuance or delivery of the Notes or in any manner questioning the proceedings and authority
under which the Notes are issued or affecting the ability of the City to pay the principal of or the interest
on the Notes.
APPROVAL OF BOND COUNSEL
Legal matters incident to the authorization, issuance and sale of Notes by the City are subject to the
approving legal opinion of Gottlieb, Fisher & Andrews, PLLC, Bond Counsel. A copy of the opinion of
Bond Counsel will be delivered with the Notes.
CONTINUING DISCLOSURE
The City has undertaken, for the benefit of the Owners and Beneficial Owners of the Notes required by
subsection (b)(5)(i) of the Rule 15c2-12 (the "Rule") of the United States Securities and Exchange
Commission (the "SEC"), to provide or cause to be provided to each then existing nationally recognized
municipal securities information repository designated by the SEC ("NRMSIR") and to the State
Information Depository ("SID"), if one is created, the following annual financial information and
operating data (collectively, the "Annual Financial Information") for each prior fiscal year, commencing
with the fiscal year ending December 31, 2000, on or before the last day of the ninth month following the
end of such prior fiscal year:
(a) annual financial statements prepared in accordance with the generally accepted
accounting principles'applicable to governmental units, as such principles may be
changed from time to time and as permitted by State law; which statements will not be
audited, except that if and when audked financial statements are otherwise prepared
and available to the City, they will be provided (the "Annual Financial Statements");
(b) authorized, issued and outstanding balance of general obligation bonds;
(c) assessed valuation for the fiscal year;
(d) regular property tax levy rate and regular property tax levy rate limit for the fiscal
year; and
(e) narrative explanation for the reasons for any amendments to the undertaking made
during the previous fiscal year and the impact of such amendments on the Annual
Financial Information being provided.
In its provision of such financial information and operating data, the City may cross-reference to any
"final official statement" (as defined in the Rule) available from the Municipal Securities Rulemaking
Board (the "MSRB") or any other documents theretofore provided to each then existing NRMSIR or the
SID, if one is created.
The City further agrees to provide or cause to be provided, in a timely manner, to the SID, if one is
created, and to either the MSRB or each then existing NRMSIR, notice of any of the following events
with respect to the Notes, if material:
1. Principal and interest payment delinquencies;
24
statement herein includes matters of opinion, or estimates of future expenses and income, whether or not
expressly so stated, they are intended merely as such and not as representations of fact.
The information contained herein should not be construed as representing all conditions affecting the City
or the Notes. Additional information may be obtained directly from the City or the Underwriter.
The foregoing statements relating to the Ordinance and other documents are in all respects subject to and
qualified in their entirety by provisions of such documents.
This Official Statement, starting with the cover page and all subsequent pages, including the appendices,
comprise the entire Official Statement, which has been approved by the City. The City has represented to
the Underwriter that the portions of this Official Statement directly pertaining to the City neither contain
any misrepresentation of material fact nor omit any material fact necessary to understand the financial,
economic or legal nature of the City or any information presented herein.
26
- Bankof America
Banc of America Securities LLC
Nicole Ashford
Assistant Vice President
NW Public Finance
Honorable Mayor and City Council January 19, 2000
City of Bremerton
239 4th Street
Bremerton, Washington 98337
RE: City of Bremerton, Washington
$1,250,000 Tax Anticipation Notes, 2000
Honorable Mayor and City Council:
Banc of America Securities LLC (the "Underwriter") offers to purchase from the City of
Bremerton (the "Issuer") all of the above-described notes (the "Notes"), on the terms and based
upon the covenants, representations and warranties set forth below and in Appendix A, which is
incorporated into this agreement (the "Purchase Agreement") by reference. Appendix A contains
a brief description of the Notes, including principal amount, maturity, interest rate, purchase price,
and the proposed date and place of delivery and payment (the "Closing"). Other provisions of this
Purchase Agreement are as follows:
1. Prior to the Closing, Issuer will approve a Preliminary Official Statement and will pass an
ordinance authorizing the issuance and sale of the Notes (the "Note Ordinance") with such
changes as are requested by the Issuer and its counsel. The Underwriter is authorized by
Issuer to use these documents and the information contained in them in connection with the
public offering of the Notes and the Final Official Statement in connection with the sale and
delivery of the Notes.
2. Issuer, to the best of its knowledge, represents and covenants to the Underwriter that:
(A) It has, and will have at the Closing, the power and authority to enter into and perform
this Purchase Agreement, to pass the Note Ordinance and to deliver and sell the Notes
to the Underwriter;
(B) This Purchase Agreement and the Notes do not and will not conflict with, or constitute
or create a breach or default under, any existing law, regulation, order or agreement to
which Issuer is subject;
(C) Other than the Note Ordinance, no governmental approval or authorization is required in
connection with the sale of the Notes to the Underwriter;
(D) The Preliminary Official Statement (hereinafter defined) with corrections, if any, noted
by the Issuer and its counsel, which is "deemed final" as of its date and (except as to
matters corrected or added in the Final Official Statement including offering prices,
interest rates, selling compensation, delivery dates, and other information dependent on
such matters) as of this date, is accurate and complete in all material respects as of its
date to the knowledge and belief of the officers and employees of the Issuer responsible
for its review, after due review;
(E) Ihe Issuer hereby ratifies, approves and confirms the distribution of the Preliminary
Official Statement with respect to the Notes, dated January 5, 2000 (together with the
Banc of America Securities LLC member NYSE/NASD/SIPC, is a subsidiary of Bank of America Corporation
800 Fifth Avenue, Floor 34, Post Office Box 34662, Seattle, Washington 96124
Telephone (206) 358-8991, Telefax (206) 358-~818, jane.d.towery~)bankofamerica.com
The City of Bremerton
January 19, 2000
Page 2
Appendices thereto, any documents incorporated therein by reference, and any
supplements or amendment thereto, the "Preliminary Official Statement"), in connection
with the public offering and sale of the Notes by the Underwriter prior to the availability
of the Final Official Statement and deems such Preliminary Official Statement final as of
its date for purposes of paragraph (b)(1) of the United States Securities and Exchange
Commission Rule 15c2-12 (the "Rule"), except for the omission of such information as
may be permitted by the Rule;
(F) The Issuer agrees to cooperate with the Underwriter to permit the Underwriter to
deliver or cause to be delivered, within seven business days after this Purchase
Agreement and in sufficient time to accompany any confirmation that requests payment
from any customer of the Underwriter, copies of a Final Official Statement (the "Final
Official Statement") in sufficient quantity to comply with paragraph (b)(4) of the Rule
and the rules of the Municipal Securities Rulemaking Board ("MSRB");
(G) The Issuer will have made an undertaking to provide continuing disclosure to meet the
conditions of paragraph (d)(2) of the Rule as required under paragraph (b)(5) of the
Rule as provided in the Note Ordinance.
3. The Underwriter agrees to deliver three copies of the Final Official Statement to each of the
nationally recognized municipal securities information repositories on the business day on
which the Final Official Statement is available, and in any event no later than seven business
days after the date thereof.
4. The Underwriter shall have the right to cancel this Purchase Agreement by notifying the Issuer
of its election to do so if, after the execution of this Purchase Agreement and prior to the
Closing:
(A) A decision by a court of the United States or the United States Tax Court shall be
rendered, or a ruling or a regulation (final, temporary, or proposed) by or on behalf of
the Treasury Department of the United States, the Internal Revenue Service or other
governmental agency shall be issued and in the case of any such regulation, published in
the Federal Register, or legislation shall have been introduced in, enacted by or favorably
reported to either the House of Representatives or the Senate of the United States with
respect to federal taxation upon interest received on bonds of the type and character of
any of the Notes which, in the reasonable judgment of the Underwriter, materially
adversely affects the marketability of the Notes or their sale by the Underwriter, at the
contemplated public offering prices; or
(B) The United States shall have become engaged in hostilities which have resulted in
declaration of war or national emergency, or other national or international calamity or
other event shall have occurred or accelerated to such an extent as, in the reasonable
opinion of the Underwriter, to have a materially adverse affect on the marketability of
the Notes; or
(C) There shall have occurred a general suspension of trading on the New York Stock
Exchange; or
The City of Bremerton
January 19, 2000
page 3
(D) A general banking moratorium shall have been declared by United States, New York
State or Washington State authorities; or legislation shall hereafter be enacted, or
actively considered for enactment, with an effective date prior to the date of the delivery
of the Notes, or a decision by a court of the United States shall hereafter be rendered, or
a ruling or regulation by the Securities and Exchange Commission or other
governmental agency having jurisdiction on the subject matter shall hereafter be made,
the effect of which is that:
(i) The Notes are not exempt from the registration, qualification or other
requirements of the Securities Act of 1933, as amended and as then in effect, or
the Securities Exchange Act of 1934, as amended and then in effect, or
(ii) The Note Ordinance is not exempt from the registration, qualification or other
requirements of the Trust Indenture Act of 1939, as amended and as then in effect,
or
(E) A stop order, ruling or regulation by the Securities and Exchange Commission shall
hereafter be issued or made, the effect of which is that the issuance, offering or sale of
the Notes, as contemplated herein or in the Final Official Statement, is in violation of any
provision of the Securities Act of 1933, as amended and as then in effect, and which, in
its reasonable judgment, adversely affects the marketability of the Notes or the market
price thereof.
5. The Underwfiter's obligations hereunder are also subject to the following conditions:
(A) At or prior to the Closing, Issuer will deliver, make available to the Underwriter, or have
adopted:
(i) The Notes, fully registered in book-entry form only in the name of Cede & Co., as
bond owner and nominee for The Depository Trust Company;
(ii) A certificate from an authorized officer of Issuer, in form and substance acceptable
to the Issuer and the Underwriter, stating that execution of the Certificate shall
constitute execution of the Final Official Statement by the Issuer, that the Final
Official Statement, to the knowledge and belief of such officer, after due review, as
of its date, did not and as of the date of Closing, does not contain any untrue
statement of a material fact'or omit any statement or information which is
necessary to make the statements therein, in the light of the circumstances under
which made, not misleading, and that the representations of the Issuer contained in
this Purchase Agreement were true and correct when made and are true and
correct as of the Closing; and that there has not been any material adverse change
in the normal operations or financial condition of the City, nor to the best of the
City's knowledge, to the general economy of the City since the date of the
Preliminary Official Statement, except as disclosed in the Official Statement or any
supplement thereto;
(iii) The approving opinion of Bond Counsel dated the day of Closing in the form
attached to the Official Statement;
The City of Bremerton
January 19, 2000
Page 4
(iv) The following documents executed by authorized officers of the Issuer:
(a) A certificate, dated the day of the Closing to the effect that no litigation or
other proceedings are pending or threatened in any way affecting the
issuance, sale or delivery of, or security for, any of the Notes or the
collection or application of the taxes to be used for the payment of principal
and interest on the Notes.
(b) A certificate setting forth the facts, estimates and circumstances in existence
on the date of Closing which establish that it is not expected that the
proceeds of the Notes will be used in a manner that could cause the Notes to
be "arbitrage bonds" within the meaning of Section 148 of the Internal
Revenue Code and any applicable regulations thereunder.
(c) Such additional certificates, instruments or opinions or other evidence as the
Underwriter may deem reasonably necessary or desirable to evidence the due
authorization, execution, authentication and delivery of the Notes, the truth
and accuracy as of the time of the Closing of the Issuer's representations and
warranties, and the conformity of the Notes and Note Ordinance with the
terms thereof as summarized in the Official Statement, and to cover such
other matters as it reasonably requests.
(d) A certified copy of the Note Ordinance.
6. Issuer will pay the cost of preparing, printing and executing the Notes if any, the fees and
disbursements of Bond Counsel, its financial advisors, bond registration, travel and lodging
expenses of Issuer's employees, and other expenses of Issuer.
The Underwriter will pay fees and disbursements of Underwfiter's travel expenses, and other
expenses of the Underwriter. As a convenience to Issuer, the Underwriter may from time to
time make arrangements for certain items for which Issuer is responsible hereunder, such as
printing of the Preliminary and Final Official Statements.
The Underwriter also may advance for Issuer's account when approved or authorized by the
Underwriter the cost of the items for which Issuer is responsible by making payments to third-
party vendors. In such cases, Issuer shall Pay such costs or expenses directly, upon submission
of appropriate invoices by Underwriter, or promptly reimburse the Underwriter in the event
the Underwriter has advanced such costs or expenses for Issuer's account. It is understood
that Issuer shall be primarily responsible for payment of all such items and that the
Underwriter may agree to advance the cost of such items from time to time solely as an
accommodation to Issuer and on the condition that it shall be reimbursed in full by Issuer.
7. This Purchase Agreement is intended to benefit only .the parties hereto, and Issuer's
representations and warranties shall survive any investigation made by or for the Underwriter,
delivery and payment for the Notes, and the termination of this Purchase Agreement. Should
the Issuer fail to satisfy any of the foregoing conditions or covenants, or if the Underwfiter's
obligations are terminated for any reasons permitted under this Purchase Agreement, then
The City of Bremerton
January 19, 2000
page 5
neither the Underwriter nor the Issuer shall have any further obligations under this Purchase
Agreement, except that any expenses incurred shall be borne in accordance with Section 6.
8. This offer expires on the date, and at the time, set forth on Appendix A.
Respectfully submitted,
Banc of Amedca Securities LLC
By: Nicole Ashford
Assistant Vice President
Accepted January 19, 2000
City of Bremerton
By:
Its:
APPENDIX A
DESCRIPTION OF NOTES
(a) Purchase Price: $1,245,625.00 ($99.65 per $100), plus accrued interest from the dated date to the date of Closing
(b) Dated Date: Febma~ 1, 2000
(c) Par: $1,250.000
(d) Denominations: $50,000, or integral multiples thereof
(e) Form: Book-entry. only
(f) Interest Payment Date(s): On January 31, 2001 (maturity)
(g) Maturity Schedule: Notes shall mature and bear interest as follows:
Due January 31 Amount Rate Yield or Price
2001 $1,250,000 4.40% 100
(h) Optional Redemption: The Notes will not be subject to redemption prior to maturity
(i) Closing Date: February 1, 2000
(j) Offer Expires: 11:59 p.m. lunuary 19, 2000
(k) Bond Counsel: Gottlieb Fisher & Andrews PLLC
For Information Purposes Only:
Gross Interest Cost $ 55,000.00
Plus: Underwriter's Discount 4~375.00
Net Interest Cost $ 59,375.00
Net Interest Cost (%o) 4.7500%
CITY OF BREMERTON
2000 CASH FLOW PROJECTION
Thousands
2000
1500
IOO0
500
-500
-1000 ~
-1500
DEC JAN FEB MAR APR MAY JUN JUL AUG SEP OCT NOV
I' 20001
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NOIIO~O~d ~O~J HSV3 QN~J ~N~9 000[
Dt D THE "SECOND READING" STATUS
-- OF THIS ITEM, LISTED EXHIBITS WILL NOT
BE RE-COPIED. IF ADDITIONAL REVIEW IS
REQUIRED, COPIES OF ALL EXHIBITS ARE
AVAILABLE (1) IN THE COUNCIL AGENDA
PACKET DATED JANUARY 12, 2000; (2) IN THE
AGENDA BILL COMMUNITY DEVELOPMENT DEPARTMENT;
OR (3) IN THE CITY COUNCIL OFFICE.
BREMERTON CITY COUNCIL
1. SUBJECT: Public Hearing~on Development FOR AGENDA OF: -..~::-----~,~i-
Agreement for Northwest Corporate Campus (PL99- ORIGINATING DEPT.: DCD
0073), Ron Sciepko applicant ORIGINATOR: Jon Holan
(--~C~c~'-"~u~-~,Cc~ c~l DATE SUBMITTED: December 25, 1999
2. CLEARANCES:.(Commeqt on back if 3. EXHIBITS: z~_/
necessary) / j// 1. Ordinance #
Comm. Dev. Dir.: ff~3 ~ 2. Staff Report dated 12/29/99
~ ~X~~ 3. Development Agreement
6. Conditions approved by Planning
Commission
7. Planning Commission Findings of Fact,
Analysis and Recommendation
8. List of Submittal Exhibits
9. Correspondence Received on this matter
ENDORSEMENT ~ INFORMATION __ APPROVED BY COUNCIL PRESIDENT FOR SUBMITTAL:
4. SUM3~RY STATEMENT AND REQUIREMENT FOR COUNCIL ACTION:
City Council is requested to conduct a public hearing on the adoption of a proposed development
agreement for the development of an industrial park on 188 acres located north of Old Clifton Road, south of State
Highway 16 and west of Anderson Hill Road.
5. RECOMMENDATION:
Motion to approve Ordinance No. 4693 on second reading, adopting the proposed development
agreement for Northwest Corporate Campus industrial development based on the City Council's
specific determination that the Mitigated Determination of Non-significance for the proposal is
upheld, and that the proposed agreement is consistent with the requirements of BMC 21.02.900
and RCW 36.70B.170.
9. RESPONSIBLE OFFICIAL: Jori ltolan
10. NOTICE OF ACTION
PULLED ~ TABLED APPROVED DISAPPROVED ~ AMENDEDLL ]
COUNCIL DIRECTIVE: DATE:
11. AGENDA BILL
2. CI,F~ARANCE COMMI~NTS:
See attachments.
5. IMPACT OF NON-PASSAGE:
If the development agreement is denied, it would likely result in either no development of the site
or incremental development of the site without an overall program.
6. IMPACT ON STAFFING~ BUDGETS~ FACILITIES~ EQUIPMENT OR OTHER RESOURCES:
The proposed amendment would encourage further private development which would result in
economic benefits to the City of Bremerton.
7. RESEARCH SOURCES:
AN ORDINANCE adopting the Development Agreement between Northwest Cortxa'ate Campus and
the City of Bremerton (PL99-0073)
WTIE~, to strengthen the pubLic planning process, encourage private participation in
comprehensive planning and reduce the economic risk of development, the legislature of the state of
Washington enacted RCW 36.70B. 170 through 36.70B.210 (the "Development Agreement Statute"),
which ~ a local government to enter into a development agreement with thc owner of real property
regarding the development of such property and establishing certain development fights; and
WHEREAS, Bremerton has adopted provisions in its development regulations, Btcmerton
Municipal Code (BMC) §21.02.900, which allow for a Development Agreement consistent with the
Development Agreement statute; and
WltEREAS, Northwest Corporate Campus (NWCC) owns certain real property consisting of
approximately 188 acres located in the City Urban Growth Area, as diagramed in Attachment "A"
[Conceptual Site Plan] and more particularly described in Attachment "B" [Legal Description] of the
Development Agreement; and
WHEREAS, NWCC intends to develop an Industrial Park by providing a range of employment
oppommities that would respond to identified and evolving market conditions and the feasible capacity
of planned infrastructure systems to support them; and
WHEREAS, NWCC has fried a Development Agreement, as provided in Exhibit "A" of this
ordinance, with the City of Bremerton and that this Development Agreement has been processed,
considered and executed in accordance with those City and State requirements; and
WHEREAS, the City of Bremerton Planning Commission conducted a public meeting on
November 16, 1999, to review the business terms of the Agreement and recommended to the City Council
approval of the Agreement containing those terms as modified by the Commission; and
WHEREAS, a Mitigated Determination of Nonsi~tmificance (MDNS) has been issued for the
Agreement with 15 mitigating measures; and
WHEREAS, the Agreement incorporates the conditions recommended by the Planning
Commission and the mitigation measures identified in the MDNS; and
WHEREAS, Bremerton has determined that the Project is. a development for which this
Agreement is appropriate, and desires to enter into this Agreement. This Agreement will, among other
things, eliminate uncertainty in long-term planning, provide for the orderly development of the Project on
a comprehensive basis consistent with the City's current Comprehensive Plan, mitigate significant
environmental impacts, provide for all services appropriate for development of the Project, encourage an
employment base with diversity of jobs, improve the City's jobs-housing balance, ensure effective
utilization of resources within the City at the lowest possible economic cost to its citizens and otherwise
achieve the goals and purposes for which the Development Agreement Statute was enacted; and
WHEREAS, this Development Agreement is a proper exercise of the City's police power and
contract authority pursuant to RCW 36.70B. 170 and does not relate to a project permit application; and
WttEREAS, in exchange for thc benefits to Brcm~ton descril~d in the preceding recital,
together with other public benefits that could result from the development of the Project, NWCC will
receive by this Agreement assurance that it may proceed with the Project in accordance with Applicable
Law, and therefore desires to enter into this Agreement; and
WItI~YJ~, the Brcmerton City Council, alice' a duly noticed public hearing on Deceanb~ 29,
1999, made appropriate findings, including that execution of thi.~ Agreement fimhcrs the public health,
safety and general welfare, and that the provisions of this Agreement are consistent with the
Comprehensive Plan, RCW 36.70B. 170 and Bremerton Municipal Code Section 21.02.900.
THE CITY OF BREMERTON DOES HEREBY ORDAIN:
SECTION 1: The Development Agreement between Northwest Corporate Campus and the City
of Bremerton incorporated hereto as Exhibit A is hereby approved and Mayor is authorized to sign the
Agreement for the City of Bremerton after nonsubstantive changes have been made.
SECTION 2: The Development Agreement in Exhibit A is s~nnmarized as follows:
GENERAL OBLIGATIONS: Contain.~ obligations of City in Consideration of NWCC Entering Into this
Agreement obligations of NWCC.
DESCRIPTION OF PROJECT: Describes the overall conceptual plan of the project, the initial phasing
plan, roads and utilities.
PROCESS AND PROCEDURES: Provides procedures and requirements for binding site plans,
subdivisions, SEPA review, the development review process and participating in grants, local improvement
districts and other outside funding source
DEVELOPMENT REQUIREMENTS: This section of the agreement estabhshes general development
requirements and allowed uses for the development area.
DEVELOPMENT STANDARDS: Provisions on outdoor storage, wellhead protection easement,
minimum lot size, building height, setbacks parcel coverage, residential buffer, stream and slope setbacks,
and landscaping.
TERM; VESTING; TIME FOR CONSTRUCTION; AND REVIEW: Provisions for the term of the
agreement, vesting, time for construction, review, and City's Reserved Authority.
MITIGATION MEASURES: Incorporation of the environmental document prepared for the agreement.
INDUSTRIAL LANDOWNERS ASSOCIATION: Provision for the estabhshment of an industrial
landowners association.
GENERAL PROVISIONS: This section estabhshes miscellaneous provisions on subsequent approvals,
governing law, modifications of the agreement, applicability on successors of ownership of the project,
recording, interpretation and severability, authority, attachments to the agreement, headings, processing
time, integration, disputes, defaults and remedies, estoppel certificate, no third party beneficiary,
interpretation of the agreement, notice, cooperation, and delays.
ATTACHMENTS: The agreement also includes the following attachments: conceptual site plan, legal
description of the property, wellhead protection easement, and the mitigated determination of non-
significance issued for the agreement.
SECTION 3: The full t~xt of Exhibit A will 1~ mallei upon mqu~st to th~ Department of
Community D~welopment.
APPROVED by the City Council on the first reading the day of January, 2000.
PASSED by tho City Cxamcfl of the City of Br~ signed by thc Mayor and a_ttested by the
City Clerk in authentication of such passage this day of January, 2000.
CAROL ARENDS, Council President
APPROVED this day of January, 2000
LYNN HORTON, M~or
ATTEST:
KATHLEEN MCCLUSKEY, City Clerk
EFFECTIVE DATE:
PUBLISHED:
ORDINANCE N0.:
Return Address
William T, Lynn
Gordon, Thomas, Honeywell, Malanca,
Peterson & Daheim, PLLC
P.O. Box 1157
Tacoma, WA 98401-1157
Please print or type information.
Document Title(s) (or transactions contained therein):
1. Northwest Corporate Campus Development Agreement
2.
Grantor(s) (Last name first, then first name and initials)
1 .Northwest Corporate Campus, LLC
2.
3.
Grantee(s) (Last name first, then first name and initials)
1.City of Bremerton
2.
3.
Legal Description (abbreviated: i.e., lot. block, plat or section, township, range)
A portion of Sections 32 & 33, T24N, R1E, W.M. and portions of Sections 4 & 5, T23N, R1E, W.M., City of
Bremerton, Kitsap County, Washington
Legal Description on Page 33 (Attachment "B) of Document.
Reference Number(s) of Documents Assigned or Released:
Kitsap County Auditor No. 3219254
Assessor's Property Tax ParceFAccount Number
042301-1-054-2007,332401-3-012-2008,322401-4-016-2003,322401-4-017-2002,322401-
4-018-2001,052301-1-004-2007,052301-1-023-2004,052301-1-024-2003,052301-1-025-
2002,052301-I-026-2001,322401-4-026-2001,332401-3-013-2007
The Auditor/Recorder will rely on the information provided on this cover sheet. The staff will not read the
document to verify the accuracy or completeness of the indexing information provided herein, ti o~8971
AGENDA BILL
BREMERTON CITY COUNCIL
I. SUBJECT: Ordinance (first reading) FOR AGENDA OF: JanuaryA~, 2000
establishing a special election date of ORIGINATING DEPT: Parks & Recreation
May 16, 2000 for a Parks and Recreation ORIGINATOR: Cris Gears, Director
Bond DATE SUBMITTED: January 7, 2000
2. Cl.~ARANCES:
(Comment on back if necessary)/~
Parks & Recreation Director: ,. {~.~ Ordinance
. ,v/ - ' Description proposed ' Projects
City Attorney: t" 5)~7~/~ Of IY2Rll
FiscaI& Budgex Committee: Study Session 12-15-99
Operations Committee: Study Session 12-15-99
ENDORSEMENT INFORMATION APPROVED BY COUNCIL PRESIDENT FOR SUBMITTAL:
4. SUMMARY STATEMENT AND REQUIREMENT FOR COUNCIL ACTION:
At its meeting of December 22, 1999, the City Council passed (on first reading) an ordinance
establishing a special election date of March 14, 2000 for a Parks and Recreation bond. A~er
discussing this matter further with members of the citizen-based Y2R Committee, the Mayor
and staffare recommending that the special election be re-scheduled for May 16, 2000. This
change in the election date will allow Y2R Committee members and City staffto spend more
time with the public to ensure that the City's voters are fully informed about the proposed
Parks and Recreation projects prior to the election.
8. RECOMMENDATION:
Motion to approve ordinance on first reading.
Motion to pass ordinance __ on second reading.
9. RESPONSIBLE OFFICIAL: Cris Gears
ENFORCEMENT OFFICIAL: Cris Gears
EXPIRATION DATE:
REVIEW DATE:
10. NOTICE OF ACTION
PULLED TABLED APPROVED DISAPPROVED ~~D~
COUNCIL DIRECTIVE: DATE:
11. AGENDA BILL #:
2. CLEARANCE COMMENTS:
IMPACT OF NON-PASSAGE:
Non-passage of this ordinance would jeopardize the -potential for a timely public vote of the
proposed Parks and Recreation projects.
6. IMPACT ON STAFFING~ BUDGETS~ FACILITIES~ EQUIPMENT OR OTHER
RESOURCES:
The City will be required to pay the costs for the election.
7. RESEARCH SOURCES:
The language of the proposed ordinance has been reviewed and approved by Bond Counsel.
CITY OF BREMERTON, WASHINGTON
ORDINANCE NO.
/,2q ORDINANCE of the City of Bremerton, Washington, relating to City parks
and recreational facilities; providing for the incurring of indebtedness, issuing of bonds
and levying of excess taxes for the purpose of paying the cost of the development,
construction, and improvement of City park and recreational facilities; declaring the cost
of such development, construction, and improvemem as nearly as may be estimated;
providing for the borrowing of a total not to exceed $16,500,000, and selling general
obligation bonds to pay the cost thereof, such bonds to be payable by annual property tax
levies to be made in excess of regular property tax levies; and providing for the
submission of the proposition of incurring such indebtedness, issuing such bonds and
levying such taxes to the registered voters of the City at a special election to be held
therein on May 16, 2000.
WHEREAS, the City of Bremerton, Washington (the "City"), is in need for the public
health, welfare and convenience of the development, construction, and improvement of City
parks and recreational facilities; and
WHEREAS, the City does not have available sufficient funds to meet the estimated cost of
such improvements, NOW, THEREFORE,
THE CITY OF BREMERTON DOES ORDAIN:
Section 1. The City shall acquire, develop, construct, and improve City parks and
recreational facilities, and the cost of which, including the cost of issuing and selling the bonds
provided for in this ordinance, is declared to be, as nearly as may be estimated, $16,500,000.
Section 2. The City shall borrow not to exceed $16,500,000 on the credit of the City,
and shall issue and sell its general obligation bonds therefor for strictly municipal capital
purposes other than the replacement of equipment, to provide the funds for the purposes
specified in Section 1 of this ordinance. Costs of engineering, planning, financial, legal and
other services lawfully incurred incident to the purposes specified in Section 1 of this ordinance
shall be appropriate capital costs to be paid fi.om the proceeds of the bonds provided for by this
ordinance.
Section 3. The general obligation bonds authorized by this ordinance shall bear interest,
and shall mature within twenty years fi.om date of issue, but may mature within a lesser time in
such amounts, and shall be sold in such manner, as the City Council shall determine. The life of
the improvemems to be acquired by the issuance of the bonds is found to be at least twenty
years. The bonds shall be paid by annual property tax levies made in excess of regular property
tax levies, without limitation as to rate or amount, sufficient in amount to pay the principal of
and interest of the bonds when due, and the bonds shall so provide. The date, interest rate or
rates, maturities, option of prior redemption, form and covenants of the bonds shall be £~xed
hereafter by ordinance of the City Council, and the bonds shall be issued and sold when required
in one or more series, and may be combined with any other series of authorized general
obligation bonds. Pending the issuance of the bonds and receipt of proceeds thereof, the City
Council may authorize interim interest-bearing warrants or other short-term obligations to pay
for carrying out the purposes of the bonds, and the costs of such warrants or short-term
obligations shall be included in the costs of those purposes.
Section 4. The City Council shall establish reasonable fees for facility usage to offset
anticipated operating costs of the parks and recreational facilities to be acquired, developed,
constructed and improved with the proceeds of the bonds provided for by this ordinance.
Section 5. The Auditor of Kitsap County, Washington, as ex officio Supervisor of
Elections, is requested to call and conduct a special election to be held in the City on May 16,
2000, for the purpose of submitting to the registered voters of the City for their approval the
question of whether or not the City shall borrow an amount not to exceed $16,500,000, issue its
general obligation bonds therefor for capital purposes only, other than replacemem of equipment,
and levy excess taxes necessary to redeem the bonds as herein set forth.
Section 6. The City Clerk is directed to certify to the Auditor of Kitsap County,
Washington, as ex officio Supervisor of Elections, at least 45 days prior to May 16, 2000, special
election date, a copy of this ordinance and the proposition to be submitted at that special election
in the form of a ballot title as follows:
PROPOSITION NO. !
PARKS AND RECREATIONAL FACILITIES IMPROVEMENT
AND DEVELOPMENT BONDS - $t 6,500,000
Shall the City of Bremerton, Washington, borrow $16,500,000 to acquire, develop,
construct, and improve City parks and recreational facilities by issuing and selling general
obligation bonds therefor maturing within twenty years, levy annual excess property, taxes
necessary to redeem the bonds and establish fees necessary to fund operating expenses of the
facilities, all as provided in Ordinance No.
BONDS AND FEES... YES [] BONDS AND FEES... NO []
APPROVED by the City Council on first reading this __ day of ,2000.
PASSED by the City Council of the City of Bremerton, signed by the Mayor and attested
to by the City Clerk in authentication of such passage this __ day of ,2000.
CAROL ARENDS -, Council President
LYNN HORTON, Mayor
ATTEST:
APPROVED AS TO FORM:
KATHLEEN L. McCLUSKEY, Clerk
GLENNA MALANCA
City Attorney
9.3
The Y2R* Campaign: Proposed Project Development Strategy
(As revised by City Council 12-22-99)
New Community Recreation Center
Construct a 60,000 square foot state-of-the-art Recreation Center with: aerobic and workout
facilities; a fully equipped gymnasium; indoor track; indoor year-round aquatic park; meeting
rooms; banquet facilities; special areas for tots, youth, teens and seniors; and 200-250 parking
spaces beneath the building. Funding is to be provided from voter-approved GO bonds. Facility
would open in early 2002. Cost: $15,000,000
Sheridan Park
Solicit proposals for Sheridan Park from local service providers for operation and maintenance
of the facility, with emphasis (if possible) on senior services. If no acceptable proposals are
received, market property for private development. Cost: None
Senior Center in Manette
If an acceptable proposal for Sheridan Park can meet senior programming needs, transfer
Manette's programs to Sheridan Park. If no acceptable proposals for Sheridan Park are received,
schedule active Senior programs (badminton, pickle-ball, Senior Fair, etc.) at new Recreation
Center; make modest improvements to Manette (including additional parking); and allow
remaining programs to transition into new Recreation Center over a 5-10 year period. Cost:
$100,000
Jarstad Aquatic Center
Develop partnership with YMCA to improve efficiency and cost-effectiveness of operations and
maintenance of facility. Make facility improvements and continue to provide public access to
pool. Cost: $500,000
Pendergast Regional Park
Develop multi-purpose athletic fields for youth and adult activities at Pendergast Park w/th
funding provided as part of the voter-approved GO bonds. Cost: $750,000
Park maintenance operations
Vacate existing facilities at Sheridan Park; expand and beautify waterfront park property on the
south/west side of Lebo; move operations to NAD Park (utilizing the site of the log home for
office and storage facilities). If NAD site isn't possible, move maintenance operations to
Stephenson Canyon (adjacent to existing nursery). Cost: $150,000
Parking concerns
Coordinate the management and operation of all public parking facilities to generate maximum
revenue while ensuring an adequate mount of free, safe parking for Recreation Center
customers.
* Y2R = Yes to Recreation!
BEFORE T~E CITY COUNCIL
OF THE CITY OF BREMERTON
~ re
DEVELOPMENT AGREEMENT FOR )
NORTHWEST CORPORATE ) PL99-0073
CAMPUS, RON SCIEPKO, )
) Resolution Number 2735
Applicant. )
)
This matter comes before the Council on the application ofRon Sciepko for a Development
Agreement ("DA") pursuant to BMC 21.02.900 for the Northwest Corporate Campus project, PL99-
0073. The Council finds, concludes, and resolves as follows:
FINDINGS
1. The record in this matter consists of the evidence and arguments presented to the Council in
an open record hearing on 12 January 2000. The record includes testimony, exhibits, and
opinions collected by the Planing Commission in a public meeting on 16 November 1999.
The record also includes the Mitigated Determination ofNonsignificance ("MDNS") issued
by the Community Development Director, along with supporting materials; an appeal of the
MDNS; and evidence and arguments presented in the course of that appeal.
2. Concerning the adequacy of the MDNS, the Council finds:
A. The Director issued the MI)NS on 23 November 1999, along with supporting
documentation.
B. The environmental review had identified a number of potentially significant
environmental impacts. These impacts were mitigated as set out in the MI)NS.
C. As set out in Helen E. Havens-Saunders's letter of 7 December 1999, the appeal
alleged that certain impacts were unidentified and that the mitigation was inadequate.
D. The points raised in the appeal are addressed in the Director's response of 12 January
2000 and its supporting documentation. No evidence has been presented to the
Council meaningfully controverting the Director' s evidence, Appellant having offered
little beyond the allegations in her appeal.
E. Nothing has been presented to the Council precluding supplemental review of impacts
that arise or substantially change during execution of the DA,
3. The DA proposes a mix of uses in part different l~om those currently allowed and therefore
requires a rezone. Concerning the rezone, the Council finds:
A. This Resolution is being passed concurrently with Ordinance No. 4693 to comply with
BMC 21.02.920(a).
B. The Comprehensive Plan considers this a unique property that should be developed
Page 1 of 3
with a mix of commercial and light industrial uses expressly tailored to it.
C. The DA conforms to the pattern of development that is planned for the area and that
is in fact ocaming in the area and would bring the zoning for the parcel in conformity
with both.
D.There is local demand for the uses proposed in the DA.
E.The DA provides for all essential public facilities and services.
F.The uses proposed conform with the area-wide plan and would not result in the
parcels being an isolated pocket.
G. The building height and coverage restrictions set out in the DA provide the flexibility
required to implement the mix of uses proposed and therefore to implement the
Comprehensive Plan.
4. Development agreements must meet the criteria set out in BMC 21.02.900(c) unless found
inapplicable. The Council finds:
A. The DA contains all major project components, given its phased nature.
B. The DA provides for landscaping buffers, and open space but does not provide for
parks and recreation areas since the project is not a residential development.
C. This is not a residential development and so is not required to provide affordable
housing.
D. The MDNS, applicable development standards, the DA, and the ongoing permitting
process provide the necessary mitigation and conditions for the project.
E. The DA provides for financial and property arrangements.
F. The DA sets the necessary design and development standards.
G. The DA. sets out project phasing and any procedures not already provided by Code.
H. The DA provides for its own duration period.
I. The DA provides for requirements presently needed and also provides procedures to
implement additional requirements as the need arises.
5. Given the foregoing, the Applicant has made a prima facie case that the DA complies with all
City plans, regulations, standards, and guidelines, and the Council has not been presented with
evidence that rebuts the Applicant.
CONCLUSIONS
1. Appellant has not proved that significant environmental impacts have not been identified
or, if identified, have not been adequately mitigated.
2. The DA meets the rezoning requirements of BMC 21.02.920(d).
3. The DA meets the development agreement requirements of BMC 21.02.900(c).
4. The DA meets the general requirements of BMC 21.02.885(0.
Page 2 of 3
RESOLUTION
TI~EREFORE BE IT RESOLVED THAT:
1. The MDNS is upheld.
2. The DA is approved.
Dated this day of January, 2000.
BREMERTON CITY COUNCIL
CAROL ARENDS, Presidem
ATTEST TO
KATHLEEN MCCLUSKEY, City Clerk
Page 3 of 3