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HomeMy WebLinkAbout01/29/03 AGENDAFILE 239 ~tth Street · Bremerton, WA 98337 · Phone (3601 ~178-5280 · Fax (360~ 478-5251 ***AMENDED*** CITY COUNCIL MEETING AGENDA JANUARY 29, 2003 PRE-COUNCIL STUDY SESSION: 5:00 -5:30 P.M. in Council Conference Room A. General Council Business CALL TO ORDER: 5:30 P.M. in Council Chambers A. Pledge of Allegiance B. Invocation CONSENT AGENDA A. Minutes of Meeting - January 22, 2003 (#AB03-011 ) B. Insurance Renewals (#AB03-016) 4. CLAIMS/CHECK REGISTERS 5. COUNCIL MEMBER REPORTS 6. MAYOR'S REPORT 7. PUBLIC RECOGNITION - Comments limited to 3-rninutes NEW BUSINESS A. Appointment of Holly James to the Bremerton Civil Service Commission (#AB03-012) B. Grant Contract Amendment with the Washington State Coalition to Reduce Underage Drinking (#AB03-013) PUBLIC HEARINGS - ORDINANCES & RESOULTIONS A. Ordinance No. 4846 [Second Reading] authorizing the issuance of the Revenue Bonds for the :~ ~ Conference Center Parking Garage and Hotel Plaza (#AB03-008) B. Ordinance [First Reading] Vacating a portion of 2nd Street, East of Washington Avenue "7,~,- (#AB03-014) C. Resolution No. 2885, Declaration of Emergency, Naval Avenue Sewer Main (#AB03-015) 7 ~ 10. ADJOURNMENT OF CITY COUNCIL BUSINESS MEETING E-mail: citycouncil@ci.bremerton.wa.us · Web: www. ci.bremerton,wa.us CITY COUNCIL MEETING January 29, 2003 SPEAKERS LIST If you wish to make an announcement, inform the Council of an issue, or ask a genera/question...P/ease provide information be/ow so staff will be able to contact you. Thank you. NAME ADDRES S/TELEPHONE TOPIC AGENDA BILL BREMERTON CITY COUNCIL 1. MINUTES OF MEETING - JANUARY 22, 2003 FOR AGENDA OF: JANUARY 29, 2003 ORIGINATING DEPT: CITY COUNCIL ORIGINATOR: CAROL ARENDS, PRESIDENT DATE SUBMITTED: JANUARY 23, 2003. 2. LEC. L_E_ARA~[C_E~: (Comment on back if necessary) 3. EXHIBITS: ENDORSEMENT [] MAYOR: INFORMATION [] APPROVED FOR SUBMITTAL BY COUN~CIL PRESIDENT: 4. SUMMARY STATEMENT AND REOUIREMENT FOR COUNCIL ACTION: 5. RECOMMENDATION: PULLED [] TABLED [] APPROVED [] COUNCIL DIRECTIVE: 6. RESPONSIBLE OFFICIAL: ENFORCEMENT OFFICIAL: EXPIRATION DATE: REVIEW DATE: DISAPPROVED [] AMENDED [] DATE: 8. AGENDA BILL NO.: O,.~ - 1~)// I 9. IMPACT OF NON-PASSAGE: 10. IMPACT ON STAFFING. BUDGETS. FACILITIES. EOUIPMENT OR OTHER RESOURCES: 11. RESEARCH SOURCES: TAPE#1875 CITY COUNCIL MEETING MINUTES January 22, 2003 The weekly meeting of the City Council of the City of Bremerton was called to order in the City Council Chambers, 239 4th Street, Bremerton, Washington, Wednesday, January 22, 2003, at 5:30 P.M., with Council President Carol Arends presiding. Council members present were Mike Shod, Will Maupin, Eric Younger, Mike Shepherd, Ed Rollman, Cecil McConnell, and Wayne Olsen. Council member Daren Nygren was absent. Aisc present were City Attorney Roger Lubovich; Deputy City Clerk Paula Johnston; and Legislative Assistant Lori Smith. The meeting opened with the Pledge of Allegiance led by Council Member Cecil McConnell, followed by the invocation provided by Reverend Scott Huffof St. Luke's Methodist Church. President Arends made the following announcements: 1. A Pre-Council session was held in the Council Conference Room to discuss updates to the meeting Agenda; and 2. A Study Session would be held immediately following the Council Meeting to hear a presentation from Mary McClum, Executive Director with Kitsap Regional Coordinating Council (KRCC), on "BROADBAND POLICY ISSUES". CONSENT AGENDA A. Minutes of Meeting - January 15, 2003 (#AB03-007) #0015 M/S/C/U (McConnell/Olsen) Move to approve Consent Agenda as presented. CLAIMS & CHECK REGISTERS Vouchers audited and certified by the auditing officer as required by RCW 42.24.080, and those expense reimbursement claims certified as required by RCW 42.24.090 have been recorded on a listing that had been made available to the Council. #0045 M/S/C/U (Younger/McConnell) On January 22, 2003 the Council approved payment for Check Numbers 277869 through 278045 and Electronic Fund Transfers (EFTs) 7493 through 7499 in the amount of $838,683.34; and Regular Payroll in the amount of $957,588.15 for the pay period ending January 15, 2003. COUNCIL MEMBER REPORTS Mike Short reported on his attendance at the Peninsula Regional Transportation Planning Organization (PRTPO) meeting last Thursday; and announced the next District 8 & 9 Neighborhood meeting would be held Thursday, January 23, 2003 from 6:30 to 8:00 P.M. in the Conference Room of the Oyster Bay Public Works & Utilities building to discuss "RECENT CHANGES IN CODE ENFORCEMENT". Will Maupin reiterated information about the District 8 & 9 Neighborhood meeting, and encouraged all residents of the City to attend. Mike Shepherd congratulated the Admiral Theater for their success in booking Arlo Guthrie for a sold out concert; noted that Caf8 Destino would be opening soon; and lastly, cautioned drivers to please slow down and obey the traffic laws. TAPE #1875 City Council Reg. Mtg. Minutes January 22, 2003 Page 2 of 4 Ed Rollman announced an informational meeting and Open House with Washington State Ferry officials next Wednesday, January 29 from 5:30 to 8:00 P.M. in the basement of the Washington Mutual Bank Building located at 500 Pacific Avenue Wayne Olsen announced that due to several concerns expressed by neighbors about speeding in their neighborhoods, the next District 1 & 2 Town meeting would have City staff available to discuss "Speed Humps". The meeting will be held Thursday, February 20 from 6:00 at the Sheridan Park Recreation Center. Carol Arends reported that she was pleased to attend the annual event to honor the legacy of Martin Luther King at the Kitsap Pavilion on Monday. MAYOR'S REPORT · Mayor Bozeman congratulated Fire Chief Al Duke and the Fire Department for their good work and assistance in proving that a man convicted of killing his wife also had committed arson; · In response to the Council including "annexation" as one of their top priorities for 2003, informed them that he would be meeting with staff to discuss annexation strategies; · Invited the Council to participate in "Bremerton Night" with State Legislators in Olympia on Thursday, February 27 at the Washington Center for the Performing Arts; · Indicated that he volunteered his assistance to help raise funds to create more "Latch Key Programs" at the YMCA and local elementary schools; and · Provided a briefing on the "MAYOR'S PRIORITIES FOR 2003". PUBLIC RECOGNITION Allen Shute again expressed his concern that a citizen was not appointed to the City's Parking Committee, and also encouraged more enforcement against citizens incorrectly using the Disabled Parking passes. Ruth Enderle, Executive Director with the Admiral Theater, reported on several upcoming events scheduled at the Admiral Theater, including "George M", a musical on tour from New York City on Wednesday, February 5. Tom Lon.q, First Vice-President of the Bremerton Symphony, announced the fourth concert of the season on Saturday, February 1 at 7:30 P.M. at the Bremerton High School Performing Arts Center with Guest Adists Sachi & Aya Sugimoto. Tickets may be obtained by calling 373-1722, and additional information can be found on their web site at www.symphonic.or,q. Gordy Byrd expressed his appreciation for the work of the City Council members. 9A - PUBLIC HEARING AND ORDINANCE [FIRST READING[ AUTHORIZING THF ISSUANCE OF THE REVENUE BONDS FOR THE CONFERENCE CENTER PARKIN(~ GARAGE AND HOTEL PLAZA [FIRST READING] (#AB03-008): Gary Sexton, Economic Development Director, stated that Council action and approval is required for the Agreement and Ordinance for the bond issuance to complete cost coverage for the Conference Center Parking Garage, Hotel Plaza, and Conference Center in the sum of $11,750,000.00. Jane Towery, Managing Director of the Securities Division was also available to answer questions. TAPE #1875 City Council Reg. Mtg. Minutes January 22, 2003 Page 3 of 4 Allen Shute questioned why the City would not choose a fixed-rate now, while the interest rates are Iow. Mr. Sexton explained that the City can switch to a fixed rate after a track record of parking revenues has been established. He also established that purchasing a cap would be expensive. Mike Shepherd added that the Council has studied this issue very thoroughly, and will continue to discuss the issue in the future. Ed Rollman provided his comments in support of this issue. Eric Younger stated that he supported this project, but realized that the City must have a contingency reserve fund in place to rebuild funds and to pay back the bonds, perhaps a fund made up of property tax collections from the hotel portion of the Conference Center. Michael Wilson, Finance Director, discussed the possibility of establishing a Rate Stabilization Account. #1455 M/S/C/U (Shepherd/McConnelt) Move to approve Bond Ordinance on first reading. 9B - PUBLIC HEARING AND RESOLUTION NO. 2882 RENEWING THE MORATORIU~ RELATING TO WIRELESS COMMUNICATION FACILITIES (#AB03-009): RoRer Lubovich, City Attorney, explained that a moratorium is currently in effect relating to wireless communication facilities. The moratorium will expire at midnight on January 23, 2003. Staff is requesting a six (6) month renewal of the moratorium in order to allow sufficient time to gather information, complete analysis and determine what, if any, reasonable regulations are necessary. A public hearing is required to consider renewing the moratorium. Paul Ro,clerson with the Department of Community Development, provided additional information. There were no comments from the public. #1735 (ShortJMcConnell) Move to pass Resolution No. 2882 renewing the moratorium relating to wireless communication facilities. 9C - PUBLIC HEARING AND RESOLUTION NO. 2883 RENEWING THE MORATORIUM RELATING TO OFF-PREMISES SIGNS (#AB03-010): Roger Lubovich, City Attorney, explained that a moratorium is currently in effect relating to off-premises signs. The moratorium will expire at midnight on January 23, 2003. Staff is requesting a six (6) month renewal of the moratorium in order to allow sufficient time to gather information, complete analysis and determine what, if any, reasonable regulations are necessary. A public hearing is required to consider renewing the moratorium. Paul Ro.clerson with the Department of Community Development, provided additional information. There were no comments from the public. #1870 (Short/Olsen) Move to pass Resolution No. 2883 renewing the moratorium relating to off- premises signs. TAPE #1875 City Council Reg. Mtg. Minutes January 22, 2003 Page 4 of 4 With no further regular business, the meeting adjourned at 6:30 P.M. The Council reconvened in the Council Conference Room for a Study Session on Prepared and Submitted by: Attest: LORI SMITH Legislative Assistant PAULA JOHNSTON, Deputy City Clerk CAROL ARENDS, City Council President City of Bremerton CNP J/Islcge c: Normal Distribution; File AGENDA BILL BREMERTON CITY COUNCIL 1. SUBJECT: AUTHORIZATION TO PURCHASE INSURANCE 2. CLEA. ItANCES: (Comment on back if necessary) RC~GER A. LUBOVICH, City Atto em~- FOR AGENDA: January 29, 2003 ORIGINATING DEPT: City Attorney's Office ORIGINATOR: Peggy Lesser DATE SUBMITTED: January 29, 2003 3. EXHIBITS: Heard at January 28, 2003 Committee Meeting FISCAL & BUDGET CHAIRMAN Heard at January 28, 2003 Committee Meeting OPERATIONS CHAIRMAN APPROVED FOR SUBMITTAL: COUNCIL PRESIDENT ENDORSEM~_ .(Tfi~.~T ION [] MA¥O ' 4. SUMMARY STATEMENT AND REQUIREMENT FOR COUNCIL ACTION: City Council approval is required to purchase insurance coverage. Council Committees considered the options to purchase liability, excess workers' compensation, and employee blanket bond insurance coverage during their January 28, 2003 meeting. Property insurance coverage was considered by the Committees on December 17, 2002. Staff recommends that the City Council approve purchasing the following policies from the insurance carriers listed and at the annual premium stated: · Liability Insurance - AIG The Insurance Company of the State of Pennsylvania - $224,600 · Excess Workers' Compensation Insurance - Midwest Employers Casualty Company - $19,029 per year (2 year policy) · Property Insurance - Affiliated FM Insurance Company - $153,594 · Employee Blanket Bond - Great American Insurance Company - $4,142 5. RECOMMENDATION: Move to authorize the City's Risk Manager to purchase the following insurance coverage from the insurance carders listed and at the annual premium stated: · Liability Insurance - AIG The Insurance Company of the State of Pennsylvania - $224,600 · Excess Workers' Compensation Insurance - Midwest Employers Casualty Company - $19,029 per year (2 year policy) · Property Insurance - Affiliated FM Insurance Company - $153,594 · Employee Blanket Bond - Great American Insurance Company - $4,142 6. RESPONSIBLE OFFI, ENFORCEMENT OFJ EXPIRATION DATE: REVIEW DATE: 7. NOTICE OF ACTION: PULLED~] TABLED/--] APPROVED [] DISAPPROVED [] AMENi COUNCIL DIRECTIVE: 8. AGENDA BILL NO.: 9. IMPACT OF NON-PASSAGE: The City will not have insurance coverage. 10. IMPACT ON STAFFING~ BUDGETS~ FACILITIES~ EQUIPMENT OR OTHER RESOURCES: The funds to pay the insurance premiums have been budgeted in the Risk Manager's fund for 2003. 11. RESEARCH SOURCES: AGENDA BILL BREMERTON CITY COUNCIL SUBJECT: Appointment to Bremerton Civil Service Commission FOR AGENDA OF: January 29, 2003 ORIGINATING DEPT: Mayor's Office ORIGINATOR: Mayor Bozeman DATE SUBMITTED: 1 - 14-03 2. CLEARANCES: (Comment on back if necessary) 3. EXHIBITS: Application of Holly James for appointment to Bremerton Civil Service Commission Statement of qualifications of Holly James MAYOR: APPROVED FOR SUBMITTAL BY CO,U~CILP S ENT: 4. SUMMARY STATEMENT AND REQUIREMENT FOR COUNCIL ACTION: The term ora current board member expires February 23, 2003. The Mayor recommends the vacancy be filled by Holly James. 5. RECOMMENDATION: Confirmation of appointment of Holly James to the Bremerton Civil Service Commission effective February 23, 2003. 7. NOTICE OF ACTION: PULLED [] TABLED [] APPROVED [] COUNCIL DIRECTIVE: 6. RESPONSIBLE OFFICIAL: ENFORCEMENT OFFICIAL: EXPIRATION DATE: REVIEW DATE: DISAPPROVED [] AMENDED [] DATE: SA 9. IMPACT OF NON-pASSAGE: Incomplete Commission membership. 10. IMPACT ON STAFFING, BUDGETS` FACILITIES, EQUIPMENT OR OTHER RESOURCES: N/A 11. RESEARCH SO~R(~ES: Vault C~pi~al (2061 6~5-238! APPLICATION FOR CITY BOARDSICOMMISSIONSICOMMITTEE NOTE: As an applicant for a City Board, Commission or Committee, your name, address, and telephone number will be available to the press and public. You will be contacted before any action is taken on your appointment. (Please type or print clearly) DATE: / --'~'-~ NAME: ~ ~ HOME ~.~O PHONE: c~O~.o* ,'~"/~ '~lx.l~, C;~/** ~.~O~. ~.c/," HOME ADDRESS: //7/~,~ ~?~/-~Z~ ~ STATE {.~- ZIP CODE. OCCUPATION::/-~/",~'..,~c~.~ ~ ~,~ WORK PHONE'~/~ - E-MAIL: h ~//i~J~&jz~ j.~ ~F~.~ EDUCATION: EMPLOYER: /~..~'--~ ~ LOCAL REFERENCES (name & phone number): - . I AM INTERESTED IN SERVING ON (please check one or more): Disability Action Committee ( ) Civil Service Commission(18 yrs. & older) ( ) Urban Forest Committee ( ) Public Access Citizens Advisory Committee ( ) ( ) Community Development Block Grant Advisory Committee ( ) ( ) Youth Council ( ) Planning Commission (18 yrs. & older) Parks & Recreation Commission ( ) Ethics Commission Parking Advisory Board ( ) Solid Waste Management Brsmerton Housing Authority Board of Appeals, Housing/Building Codes 9 Jan O? 03 04:56p Vault Capital ( ) Youth Council ( ) ( ) Safe Streets Steering Committee ( ) ( ) Citizen's Commission on Council Salaries () Is this an application for reappointment? (206) 625-2381 Board of Appeals, HousiHglBuilding C6des Mayor's Select Committee on Law Enforcement Other If yes, how many years have you sewed on this commission/committee? Please turn page WHY ARE YOU APPLYING FOR THIS APOINTMENT? ._~-/~,/~? ,'~ , ~ .... . ; , ' WHICH OF YOUR PERSONAL AND/OR PROFESSIONAL INTERESTS PROMPTED YOU TO APPLY FOR THIS APPOINTMENT: HAVE YOU SERVED ON ANY OTHER BREMERTON BOARD, COMMISSION, COMMITTEE OR TASK FORCE? IF YES, PLEASE LIST: PLEASE LIST YOUR QUALIFICATIONS FOR THIS APPOINTMENT (INCLUDE SKILLS, ACTIVITIES, .~.~; ~'~.'~..:.~ .,~-,;'.,~ ,.,"~,::~ ./.,'-t ~;a.-,.-,.~. -.,:' ~ ~.~-~,~, ~,- ~ .. , :_~ ~ .-~ t /0 ,]an O? 03 04:56p Vault Capital (P06~ 625-2381 p.3 PROFILE motwated ~tb natural abi~ty to v~k e~ecttvely v~b a di~si~d 8n~p ofpeeple fo~ a ~nunen 8enl. ~ed director, cemmi~ee c~atr, trainer for vo~ senqce orsanL~m. PROFESSIONAL SKILL~ AND KXPERTISE Adm~istrnlion md Management D Enroll~ ~ in t~t credit progrants. 0 Cmat~ s~'ev~t fund-~' _,,,~s at ali n~mee tm~ls and drnv~. [] Cendu~d te~earch, ~eviewed and administmed 8r~..t,~ AGENDA BILL BREMERTON CITY COUNCIL SUBJECT: Reduce Under Age Drinking Grant Contract Amendment FOR AGENDA: 1-22-2003 ORIGINATING DEPT: Police ORIGINATOR: Shirley Wise DATE SUBMITTED: 1-9-2003 2. ~Comment on back if necessary) Legal P°lice Chief ~¢~-~' ~:-~;~ ~- ---~ Operations Com~ttee Chair Budget and Fiscal Co~ittee Ch~ir MAYOR: ~ ~ 3. EXHIBITS: Contract Amendment APPROVED FOR SUBMITTAL BY CO/U~ CIL PRESIDENT: 4. SUMMARY STATEMENT AND REQUIREMENT FOR COUNCIL ACTION: The City of Bremerton was awarded $55,259.97 to participate with the Washington State Coalition to Reduce Underage Drinking and conduct activities to support the Coalition's objectives. No funding match is required. The Traffic Safety Coordinator for Bremerton and Kitsap County is tasked to meet the compliance requirements and administer the grant. The time period is October 1, 2002 to June 30, 2004. 5. RECOMMENDATION: Move to approve the acceptance of the Reduce Underage Drinking Orantfrcm-Division of Alcohol and Substance Abuse in the 'amount of $55,259.97. 7. NOTICE OF ACTION: PULLED [] TABLED [] COUNCIL DIRECTIVE: 6. RESPONSIBLE OFFICIAL: Chief Forbes ENFORCEMENT OFFICIAL: EXPIRATION DATE: 6-30-2004 REVIEW DATE: APPROVED [] DISAPPROVED [] AMENDED [] DATE: 8. AGENDA BILL NO.: 9. IMPACT OF NON-PASSAGE: The City of Bremerton will lose the use of $55,259.97. Support for the Washington State Coalition to Reduce Underage Drinking will be diminished. 10. IMPACT ON STAFFING, BUDGETS, FACILITIES, EQUIPMENT OR OTHER RESOURCF~: Youth emphasis patrols will be conducted; compliance patrols are scheduled for local businesses; youth conferences are scheduled; and news media and advertising activities are planned and developed for distribution. 11. RESEARCH SOURCES: State of Washington Department of Social and Health Service (DSHS) and Division of Alcohol and Substance Abuse; Washington State Patrol, Kitsap County Sheriff's Office, Washington State Liquor Control Board ]$ STATt: OF WASHINGTON DEPARTMENT OF SOCIAL AND HEALTH SERVICES December 30, 2002 Chief Robert D. Forbes City of Bremerton 239 4th Street Bremerton, Washington 98337 DASA Contract # 8208-0 Dear Contractor: Enclosed are three copies of the Contract Amendment between you and the Department of Social and Health Services, Division of Alcohol and Substance Abuse. If after careful review of the document and you determine it to be acceptable, please sig~ alt copies in the space provided for the contractor and return all three copies to: DASA Contracts Section Post Office Box 45330 Olympia, Washington 98504-5330 A fully signed copy of the document will be returned to you for your files. If you de[ermine that the Contract Amendment is not acceptable, please call your Program Manager. Sincerely, Eric Crawf6rd,Contracts Manager Division of' Alcohol and Substance Abuse P.O. Box 45330 Olympia, Washington 98504-5330 (360) 438-8493 EC:ej Enclosures INTERLOCAL AG REEttJIENT RUeD This Agreement is by and between the State of Washington Department of Social and Health Services (DSHS) and the Contractor identified below, and is issued pursuant to the tnterlocal Cooperation Act, chapter 39.34 RCW. "~ONTRACTOR NAME BremertOn City of CONTRACTOR ADDRESS 239 4th Street Bremerton, WA 98337 CONTRACTOR CONTACT Chief Robert D. Forbes DSHS ADMINISTRATION DSHS CONTRACT #: 026%14696 8208-0 Contractor Contract Number Health and Rehabilitative Services Administration emerton-Kitsap County Traffic Safety Tas.k, Force CONTRACTOR UNIFORM BU,~INESS CONTRACTOR IDENTIFIER (UBI) NUMBER DSHS INDEX NUMBER 1297 CONTRACTOR CONTACT I CONTRACTOR FAX t CONTRACTOR E-MAIL ADDRESS TELEPHONE I I 1360) 478-5220 Ext: ~~40~_.___~.~ swise@ci.bremerlon.wa.us DSHS DIVISION - DJvJsJon o[ Alcohol and Substance Abuse j 4000LC tDSHS CONTACTADDRESS PO Box 45330 Olympia, WA 98504-5330 DSFtS CONTACT NAME AND TITLE Michael Lancer Supervisor, Prevention Services DSHS CONTACT TELEPHONE _(~6~) 438-8096 Ext: DSHS CONTACT FAX (360) 438,8057 IS THE CONTRACTOR A SUBRECIRiEN'F FOR PURPOSES OF THIS CONTFbACF? Yes CONTRACT START DATE 10/01/2002 CONTRACTEND DATE 06130t2004 IDSHS CONTACT E-MAIL ADDRESS langeme@dshs.wa.gov CFDA NUMBERS 16.727 MAXIMUM CONTRACT AMOUNT $55,259.97 ATTACHMENTS. When the boxes below are marked with an X, the following Exhibits are attached to and incorporated into this Interloca[ Agreement by reference: [] Exhibit A. Statement of Work (Required for new contracts unless included in text of Agreement). [] Additional Exhibits Exhibit B, Budget; Exhibit C, Standards of Reimbursable Costs. )SHS SIGNATURE PRINTED NAME AND TITLE Sheryt Turner, Contracts Administrator Division of Alcohol and Substance Abuse DATE SIGNED DSHU Central Contract Services kl; ~r]ocal Agr~ement #6015LF (5-9-00) Rev 5-14-2002 Page 1 Definitions a. "Agreemer~t" means this lnterlocal Agreement, including all documents attached or incorporated by reference. b. "Contracting Officer" means the Contracts Administrator, or successor, of Central Contract Services or successor section or Office. "Contractor" means the entity performing services pursuant to this Interlocal Agreement and includes the Contractor's officers, directors, trustees, employees and/or agents unless otherwise stated in this Interlocal Agreement. For purposes of this Intertocal Agreement, ~he Contractor shall not be considered an employee or agent of DSHS. d. "DSHS" or "the department" or "the Department" means the State of Washington Department of Social and Health Services and its employees and authorized agerrts. "Personal Information" means information identifiable to any person, including, but not limited to, information that relates to a person's name, health, finances, education, business, use or receipt of governmental services or other activities, addresses, telephone numbers, social security numbers, driver license numbers, other identifying numbers, and any financial identifiers. Statement ol~ ~;or[~. The Contractor shall perform the services described below or as set forth in the attached Statement of Work, Exhibit A. Billing Procedure DSHS shall pay the Contractor an amount not to exceed the maximum consideration specified on page 1 of this Agreement for the satisfactory performance of afl work set forth in the Statement of Work. The Contractor shall bill for services under this contract on ~n Invoice Voucher (A-1 9) in the manner prescribed by DSHS. DSHS shall provide a pre-coded voucher for use by the Conlractor after th ~ date of execution of this contract. DSHS shall pay the Contractor upon acceptance by DSHS of properly cornpleted invoices or vouchers and approval by the DASA contract manager. If this Interlocal Agreement is terminated, DSHS shall only pay for performance rendered or costs incurred in accordance with the terms of this Intedocal Agreement prior to the effective date of termination. 4. Payment DSHS shall pay to the Contractor all reimbursable costs insofar as those reimbursable costs do not exceed that amount appropriated or otherwise available for such purposes, in accordance with the budget, attached hereto and incorporated herein as Exhibit "B'. Standards for Reimbursable Costs are defined in Exhibit "C~. The total maximum consideration is $55,259.97. The source of funds is the federal Office of Juvenile Justice and Delinquency Prevention (OJJDP), Discretionary Grant #2002-AH-FX-0055. The Catalog of Federal Domestic Assistance Number is 16.727. Changes not to exceed a cumulative 10 percent may be made by the contractor in each expenditure line item of the contract budget without a contract amendment, provided that the Contractor shall notify DSHS Division of Alcohol and Substance Abuse (DASA) of the changes by letter within 10 days. All other changes in excess of a cumulative 10 percent in each expenditure line item must receive prior DSHS/DASA approval by amendment to the contract budgeL Provided further, that indirect costs cannot be modified without a bilateral amendment. DF, HS Central Contract Services Page 2 In erio~'il Agreernent #601 r~LF (5-9~00) Rev 5-14-2002 INTERLOCAL AGREEMENT (CONTINUED) The Contractor ensures that work to be performed (Joes not duplicate work to be charged to tl:e State of Washington under any other contract or agreement with the contractor. Claims for payment submitted by the Contractor to DSHS for costs due and payable under this agreement that were incurred prior to the expiration date shall be paid by DSHS if received by DSHS within 120 days after the expiration date. Confidentiality. The Contractor may use Personal Information and other information gained by reason of this Contract only for the purpose of this Contract. The Contractor shall not disclose, transfer, or sell any such information to any party, except as provided by law or, in the case of Personal Information, with the prior written consent of the person to whom the Personal Information pertains. The Contractor shall maintain the confidentiality of all Personal Information and other information gained by reason of this Contract, and shall return or certify the destruction of such information if requested in writing by DSHS. Governance a. '1 he provisions of this Interlocal Agreement are severable. If any provision of this Interlocal Agreement is hem invalid by any court, that invalidity shall not affect the other provisions of this Intedocal Agreement and the invalid provision shall be considered modified to conform to existing law, In th:; event of an inconsistency in the ten-ns of this Interlocal Agreement, or between its terms and any applicable statute or rule, the inconsistency shall be resolved by giving precedence, in the following order to: Applicable federal and state law, regulations, and rules; Exhibit A (if any); Any other provision of this lnteflocal Agreement; and Any document incorporated by reference. in the event of a lawsuit involving this Interlocal Agreernent, venue shall be proper only in Thurston County, Washington. d. The Contractor shall comply with all applicable non-discrimination and other local, state and federal laws, regulations and rules. Indemnification. The Contractor shall be responsible for and shall indemnify and hold DSHS harmless from ail claims resulting from the acts or omissions of the Contractor and any Subcontractor. DSHS shall be responsible and shall indemnify and hold the Contractor harmless from all claims resulting from the acts or omissions of DSI4S. Inspection; Maintenance of Records During the term of this Interlocal Agreement and for one (1) year following termination or expiration of this Interlocal Agreement, the Contractor shall give reasonable access to the Contractor, Contractor's place of business, client records, and Contractor records to DSHS and to any other employee or agent of the State of Washington or the United States of America in order to monitor', audit, and evaluate the Contractor's performance and compliance with applicable laws, regulations, and this lnterlocal Agreement. Fa.ge 3 Rev. 5-14-2002 I ~ / INTERLOCAL AGREEMENT (CONTINUED) b. During the term of this Interlocal Agreement and for six (6) years following termination or expiration of this Contract, the Contractor shall maintain records sufficient to: (1) Document performance of all acts required by law, regulation, or this lnterlocal Agreement; (2) Substantiate the Contractor's statement of its organization's structure, tax status, capabilities, and ped'ormance; and (3) Demonstrate accounting procedures, practices, and records which sufficiently and properly document the Contractor's invoices to DSHS and all expenditures made by the Contractor to perform as required by this Interlocal Agreement. Ownership of Material. Material created by the Contractor and paid for by DSHS as a part of this Interlocaf Agreement shall be owned by DSHS and shall be "works for hire" as defined by the U.S. Copyright Act of 1976. 'This material includes, but is not limited to: books; computer programs; documents; films; pamphlets; reports; sound reproductions; studies; surveys; tapes; and/or training materials. Material which the Contractor uses to perform this tnterlocal Agreement but which is not created for or paid for by DSHS is owned by the Contractor; however, DSHS shall have a perpetua! license to use this material for DSHS internal purposes at no charge to DSHS. 10. Insurance. DSHS certifies it is self-insured under the State's self-insurance liability program, as provided by RCW 4.92.130, and shall pay for losses for which it is found liable. For purposes of this Agreement, the Contractor shall maintain insurance as required in the Statement of Work, unless the Ccntracto:-is self-insured or insured through a risk pool. Alteration, ~,,mendment, and Waiver. This Agreement may be amended only by a written amendment signed by both parties. Only the DSHS Contracting Officer'may waive any provision of this Agreement on behalf of DSHS. 13. Disputes. Disputes shall be determined by a Dispute Board. Each party to this Agreement shall appoint one member to the Dispute Board. The members so appointed shall jointly appoint an additional member to the Dispute Board. The Dispute Board shall review the fads, contract terms, and applicable statutes and rules and make a determination of the dispute. As an alternative to this process, either- party may request intervention by the Governor, as provided by RCW 43.17.330, in which event the Governor's process shall control. Participation in either dispute process shall precs~e any judicial or quasi-judicial action and shall be the final administrative remedy available to the parties. Termination If the funds DSHS relied upon to establish this lntedocal Agreernent are withdrawn, reduced or limited, or if additional or modified conditions are placed on such funding, DSHS may immediately terminate this Interlocal Agreement by providing written notice to the Contractor. The termination shall be effective on the date specified in the notice of termination. b. Either party may terminate this lnterlocal Agreemen~ for any other reason by providing 30 calendar days' written notice to the other party. Assignment. The Contractor shall not assign all or any portion of this Interlocal Agreement to a third party. 15. Waiver of Default. If DSHS waives any breach of this Agraement by the Contractor on any occasion, such vcaiver shall not be deemed to be a waiver of any subsequent breach of this Interlocal Agreement Page 4 17. ~N'TERLOCAL AGREEMENT (CONTINUED) by the Contractor. Subcontracting. Except as otherwise provided in this Agreement, the Contractor may subcontract for any of the contracted services with the prior, written approval of DSHS. The Contractor shall be responsible for the acts and omissions of any subcontractor. Single Audit Act Compliance. If the Contractor is a subrecipient of federal awards as defined by Office of Management and Budget (OMB) Circular A-133, the Contractor shall maintain records that identify all federal funds received and expended. Such funds shall be identified by the appropriate OMB Catalog of Federal Domestic Assistance numbers. The Contractor shall make the Contractor's records available for review or audit by officials of the federal awarding agency, the General Accounting Office, DSHS, and the Washington State Auditor's Office. The Contractor shall incorporate OMB Circular A-133 audit requirements into all contracts between the ContractoFand its subcontractors who are subrecipients. The Contractor shall comply with any future amendments to OMB Circular A-133 and any successor or replacement Circular or regulation. If the Contractor expends $300,000 or more in federal awards from any and/or all sources in any fiscal year beginning after June 30, 1996, the Contractor shall procure and pay for a single or program- specific audit fo~' that year. Upon completion of each audit, the Contractor shall submit to the DSHS Contact named in this Contract the data collection form and reporting package specified in OMB Circular A-133, reports required by the program-specific audit guide (if applicable), and a copy of any management letters issued by the auditor. APPROVED AS TO FORE,'I BY THE OFFICE OF THE ATTORNEY GENERAL 0!~? IS Ceqtral Contract Services 30 ~ !n~edocat A~rsemept (5-9-00) nev, 5 !4-2002 Exhibit A Statement of Work , City of Bremerton Enforcing Underage Drinking Laws Office of Juvenile Justice and Delinquency Prevention (OJJDP) FY2002 Discretionary Grant 10/1/02 to 6/30/04 Tl~e contractor will ensure that the Brernerton-Kitsap County RUaD Coalition (BKCR) program contains the P}ltowing elements: ~ A broad based coalition, including representatives from, but not limited to, the following: ~,~ Local law enforcement ~ Washington State Liquer Oontrol Board (WSLOB) )~ Student organizations .~ Neighborhood association(s) )~ Alcohol-related businesses ~ Youth involvement in the planning, design, implementation, and evaluation of the ooalition's plan. ~ A project coordinator to manage and participate in the overall development of goals and objectives, administer sub-grants, collect and analyze data, problem-solve, and implement their plan. ~ Collaboration with the Iaea[ representatives of the state prevention system, which includes contractors/staff of DASA, the Department of Oommunity, Trade, and Economic Development, the Department of Health, and the Office of the Superintendent of Public instnJctJon. ,~ Methodology and technology to collect data, establish baselines and track changes in a number of areas, as listed in the report section below. ~ A presentation about the program ~o the Washington .State Coalition to Reduce Underage Drinking (RUaD) committee. ,~ Representation at the VVash[ngtorJ Stale Prevention Summi[ Jn ~002 & 2_003. Implement strategies as described below. Note: WaLCB agents and minor operatives involved in these strategies will be paid by W.SLOB directly up to $8,370, and Washington State Patrol (WSP) personnel involved in these strategies will be paid by WSP directly, up to $7,020. Strategies Objective 1.1. To decrease access to alcohol through enfercement of minimum purchase age laws aimed of retailers Strategy 1.1 .a. ~orous use of compliance checks. The BKCR will continue fo work with the WSLCB Bremerfon Enforcement Office os well as local police, sheriff', and Washington State Patrol personnel to per[arm compliance checks at establishments of local liquor licensees. Liquor agents and state patrol will each provide 180 hours of overJime in support of compliance checks and related support over the course of the contract geriod. Number of compliance checks completed per quarter Percentage of bgsinesses who successfully pass compliance checks Qualitative feedback from WSLCB agents, WSP and local law enforcement regarding success and effectiveness o¢ compliance checks D ~[ ;S Cet~tra[ Contract Services F,t ,,~nc ', ~,.f?eerr'cn #6015LF (5-g 00) Rev 5 14-2002 Page 6 tNTERLOCAL AGREEMENT {CONTINUED) Objective 1,2. To decrease access fo alcohol through enforcement of minimum purchase age laws aimed at youth Objective t.3. To reduce social availability of alcohol Strategy 1.2.a. Penalties a~_Dlied to the use of false identification. Contracted law enforcement wilt act as door checkers at liquor establishments checking for false identification. Use of Penagio Pro Pen (equipment to be purchased) will be used fo help with this effoff. ,qfraieg¥ 1.3.a. The viqorous use of "Shoulder Taps" to reduce adults purchasieq for minors.. The BKCR will provide supplemental funds to the KC Sheriff's Office, Bainbridge Island, Bremerton, Poalsbo, and Pod Orchard Police Departments fo perform Shoulder Taps. Combining this effort with ].t.a, 1.2.o and 3.1 .a 550 overtime hours will be covered. Number of citations issued for use of false identification Number of other arrests will be tracked and repoded such as warrant arrests and over-service Number of underage militaw personnel will be tracked and repoded Number of Shoulder Taps per quader Number citations for Furnishing liquor to a minor issued (numbers should decrease over three quarters) Number of noise violations issued Officer feedback from "survey of party patrol effectiveness"-~a survey iointly developed by BKCR and WWU Prevention and Wellness Services expression of positive youth development $ffategy2.1.a Youth- Community Involvement Encourage established youth groups to get involved in the community by visiting local stores and liquor establishments asking them to put up posters and advertisement thai promote positive youth hobffs and to reduce the number of alcohol related Number of establishments contacted Survey from students/youth on reaction of contacted establishments Number of material dislributed ODjective 2.2. fo strengthen relationships with the local hospitality industry'. _~dverf~isi~n_g directed at youth. Strategy 2.2.~x. ~'ospifaliN Resource Alliance. Develop a Hospitality Resource Alliance {HRA) that promotes responsible and healthy business practices to influence customers fo make healthy and responsible choices about their drinking. Numbe~ of Hospitality Resource Alliance meetings Number of on-premise businesses who attend HRA meetings Numbe~ of off-premise businesses who altend HRA meetings Survey of usefulness of the HRA to members lnten/iews with HRA members on how to increase effectiveness Objective 3.I. To increase the number and effectiveness of impaired drk'ing elforis focusing on underage people Strategy 3.1.a. Viqorous use of police party emphasis patrols. The BKCR Coalition will contract with listed local law enforcement agencies 1o conduct directed youth oriented enforcement emphasis patrols. Covers ovedime costs according to enforcement plan that focus's on special events, activities and community events that draw underage drinking/padies. WSLCB and WSP will also be involved in conducting youth oriented emphasis gaho/s. Number of youth emphasis patrols per qLJarter Number of MtPs issued (numbers should decrease over three quarters) Number of furnishing charges issued Number of noise violations issued Officer feedback from "survey of party patrol effectiveness'--a survey jointly developed by BKCR and WWU Prevention and Wellness Services Page 7 DSHS Central Contract Sen'ices ~NTERLOCAL AGREEMENT(CONTINUED'. Objective 3.2. To increase coordination and communication between law enforcement and uor enforcement 5trc~legy 3.2.a. Infer4ocal and Mutaal Aid _AgL.eement Revise Inter-local and Mutual Aid Agreement to address underage drinking efforts under the BKCR project. Completed and signed document will be provided 1o DASA as an attachment in first quarterly report Objective 4.1. To increase youth padicipation in effective prevention programs Strategy 4.1.a. Youth conference p£esenfafion. Fund presentations developed and presented by youth of local, regional and state conferences, such as the State Prevention Summit and Kitsap County Youth Conference. Coordinate and fund the Kitsap County Youth Conference to provide a learning experience, project ideas and best practices in the reduction of underage Number of youth who attend 2003 State Prevention Summit Student evaluations of knowledge gainec as a resutt of attending 2003 Summit Number of youth and advisors who attend the Kitsap Courtly Youth Conference Evaluations and summow of youth conference Objective 5,1. To increase accurde news media coverage of positive image of youth Strategy 5.1.a. Social Norms Markefinq. Adved[se in student newspaper accurate social nal ms regarding student alcohol use Number of social norms marketing ads produced and placed in school newspapers Number and list of schools padicipating Number of social norms marketing ods that are market tested with siudents Student feedback on credibitit~v of_ad~s Any materi~l production must be submitted for prior approval to DASA. OJJDP requires that Lheir Iago appeer on the front of any written rn~terJds. DASA requires that the DSHS logo ~ppe~r ~lso. Billing invoice vouchers for payment must be prepared momhly and must be received by DASA by the 10fh of the month following lhe billing period. RepoKi,~g Frequency and Format Qua~erly repods during the life of a project will include progress and challenges for each of the required elements (see above) and the status of each of the planned strategies (see below). The qua~erly repoAs are due fi~een (1 5) calendar days after the end of the repo~ing calendar quaAer as follows: October - December 2002 January - March 2003 -,; .,ne 2003 Report due January 15, 2003 Report due April 15, 2003 Report due July 15, 2003 Page (;ci::, J ]~eliocal Agr,t~;m~ nt (d g-U0) Rev. 5-'~4-2002 July - September 2003 October - December 2003 January - March 2004 April - ,June 2004 INTERLOCAL AGREEMENT (CONTINUED) Report due October 15, 2003 Report due January 15, 2003 Report due April 15, 2004 See Final Report, below A report format will be provided by DASA. A Final Report, due 45 days after the conclusion of the planned activities, will describe'the last quarter as described above, but also: Describe project successes relating to the process and impact indicators included tn the strategies table above. Note ',mprovements in liquor enforcement and education > Describe unanticipated outcomes, "value-added" events > Copies of publications, consultant reports, and any statistical data generated in project execution, to include, but not be limited to: o MIP and other underage arrest o F!rnergency room/hospital admissions due to alcohol overdoses © DUI arrest and convictions o Municipal court diversions related to alcohol use o Local school-aged youth substance abuse surveys o Compliance check results o Server Training and Liability Training attendance records Page 9 ~NTERLOCAL AGREEMENT (CONTINUED) Exhibit B Budget City of Bremerton Enforcing Underage Drinkiqg Laws OJJDP FY2002 Discretionary Grant 10/1/02 to 6/30/04 Travel & Subsistence $9,179.97 Contractual Services $4I ,042.00 Program Supplies $5,038.00 TOTAL PROJECT Cos'rs $55,259.97 Costs I993 b'TANDARDS FOR pdlIMBURSABLE COSTS F..XHIBIT DEFINITIONS The following terms and phrases shall have the meanings indicated when used in this exhibit, except where the ontext.de~ly require~ otherwise. (1) "Acqu~ition cosC shall mean the net cost of equipment, including the cost~ for modificatior~, et~achment~, accessori~ or auxiliary apparatus necessary to. make the equipme~'~t useable for the purpose for which it acquired. (2)' ' 'A~u's l~ngth transaction" shall mean a transacuon resui~ag from good faith bargaining berween a buyer mad a sellm~, where the ,.)arties have adverse posirion~ fn the marketplace. (3) *Conwactor or subcontractor properrf shall mean property u~ed N performance of a conrcact wi~{cll is not deparanental property. (4) "Cost' shall m~au the historical mount of money imvotved in a transaction which decreases an asset or im:!:ea~e~ a liability, whether recognized on a cash or accru,ql ba~is, ~clud±ug repayment~ of bozrowing, · ' - ' Correedon~ to prior e~:p~uditttre~ to acquire ~set~, di~t~ibution~ to o~xers a~d correcuoas to prior p~ods. p<.:rind~ =re included a~ cosr~ in that plier period. (5) 'Cost relax:ed rabco~r~acC shall me~ a contract or subcontract Where the aaotmt of. reimbursement is r=lated to the actual cost~ of the subcont~cmr or a cla~s of subconwactor=, either in the cutrent perind or in a prior period, subject to ceiling, atlowance~, limitations and conditions adopted by the department, but wkhou.t regard to the method of pa3~nent. (6) ~Cost related subcon~--ac'~off shall mean a subcontractor Cant has ~ cost related subcontract. 'Ct~stom~y change~ shall mear~ r. he eyre-age d~arge for ~ similar service, ~clSvky or procedure for no~l- deoarrmental die. nm or purcha~er~ by providez~ who~e training and expez5ei~ce i.~ shnilaz to the contractor or mibcontractor amd are located in the same area. The area cormidered in deterrniI~.ing cuitoroary charge shall beats large m~ necessary to provide a reasonable recast/re oft.he market for iueh services, acnwmes or procedures. (8) ~T)epartment' ~hall mean the Deparmaent of Sokial and Health Service~. (9) %)epatmemtal clienr~' shall mearl individuals who receive or be_nelit from: ~er~Sces ar activities for which the corltracto= was reimbm-~ed in par~ or enlirely by the deparzment (10) ~eparm~enml fund.~' shall mean any ftmds paid by the department to a contractor, inclading funds passed ~ough to subcontractom. Departmental fundi includes federal funds which pass rl~ough tt~e.depa,vmmenr- (i1) "Depar'waental pr~pertfshall meari pr°per°/°wried by the deparlmant' and pr°perry f°r which tire is vested izl the departmen~ (t2) 'Equipment' ~1-~i mean tangible personal property having a useful life of at least one year and an ~cqui~ition cost of a~ least $400. (13) ?erzomal properrf' shall mean pr~perW of any kind e×cep~ real proverry either tar, gible or intangible. Reimbm-~able Coir-~ or 'price related subcontract" shall mean a contract or subcontract where the amount (14) ~rice related conrracC of reimbm~emen'~ is related to market prices for services, arid ~ir. hout consideration of the conWactofs or subcontractors actual or anticipated cos~. (15) '~eal proper~y~ ~ha~l mean land, land improvements, ~tructures, and appm~cenancas thereto, but excluding mo{able machinery and equipment. ,SubconWac~f shall mean any agreement for compensation bec:wean the contractor and a subcontractor, or between a subceiatractor and another subcontractor, to provide properS, servlce~ or construction needed in performance of the conwacr- (17)' .Subcontractor~ ~h~l mean any persorg parmership, corporation, association er oro~m/zarion, not in the · '- ' employment of the cona~ctor, who has a subcontract agreement directly with r. he'contractor or a subsequent tier subconr, acc agreement with an intermediate subcontractor. (18) 5'.~upplies" shall mean ramgible personal proper~y o/d~er dian eq,Zpment. other rila~n the deparr~ue~it, rile corltract~', any (19) mlrd pazoff sh~l mean an Lndividual or organization subcontractor o,v tony deparrm~tal client (20) ~Usual c.~arge" ~hdR ~=~n ~e charge which the contractor or subcontractor mo~t frequendy charges non- depa>:~me:n~ dientz or ptzmla~er~ for ~ sgmilar service, acti~'~ or procedure. · ' period of more than twelve ~23.; %Vorldng capkaP shall mean a ftmd balance accmmulated, and m~antamed for a taon~k~, or roiling at the m-ruination or expiation of a con'acact, wNch is i~or ~egregated N a reserve ac. co,it eaid i'~ ~az~d. rima~'ly to maN=in the endty'~ cash · P F~.im.bursabJ. e costs sh~ ~dude eos~ w~i ~'e necess~y for Cq~ proD~ ~d ei~ci~t pedo~ce of the coaU~ct; are reasonable ~e a~ocable to th~ contact and ~e aEowable lander =he pm~.sions of ~ e=mir~ . (2) ~.e~b~abte coi~ ~dude cos~ hl~!d hi pang ~ubco~t~cto~ for ~/~lLng ~r as~is~g the ~?n~ctor to ~t the con~ctofs obligado~ to ~e deponent. (a) If ~ suhcon~ct b wSce r~ated., ~e re~hmable cost of ~e subconwacr $h~ be ~e shoe of ~ en~ re ~e'su~on~ctor w~ eq~s ~e ~u~ &~ge or ~e c~tom~ ~a'ge, whid~ever ~, less. co$t :sh~t' be the ,shoe of pa~an~ to~e ~bcon~ctor w~ equ~.~e c~tom~ ch.e. If ~e mibcon~ct N cost relate~ ~e re~b~able cost of the =ubcon~ct sh~ be ~e .shoe of pa~enm t~:~e subcon~ctor for subcon~ctor cos~ whi~ ~e necess~ for fl~e proper ~d efficient pegom~ce of~e con. Ct, ~e re~anable ~e ~I~¢able to ~e subcon~c~ ~ld ~e ~]owable~d~&epro~io~:oi~ ~bi~ If~e;cosr~relatedsubeon~aetor ~,.a,for~profit:enfiW, rek~b~able: corn,may, ~so ~ude::pa~an~ for ord~i~ profit, prodded su~.profit ~ computed o~ a:b~is o~ a, percentage of,con--ct cos~. Cos~,,use~ to~deze~nine~ubcon~Ct pa~en~ m~y be eiffxer acm~ cosm;d~g; the con~cr pe~od or ~ared costs for the con~Ct pe~od baed on ac~ cos~ ~ ~ p~or p~od, md:may b~ eifi~er costs of ~e subcon!~actor or cos~ of a ........ or proced~es. cla~s or ~ubcl~s of facfli~es prolog ~flar ~emces, ac=~nes D{rec~ Coutract~ Keimbu~able Cost~ Issued March 1993 .R~SONABLENESS A cost Ls reasonable if, in ic~ naY. rte and a_mount, it does not exceed that which would b~ incurred by a. prudent arid rea~onable per, on under circumstances prevailing at the time the decision was made to incur the ¢o~t. (2) Im determining the reasonableness of a given cost, the following shall be giveIz careful consideration: (a) Whether tile cost is of a ty~e generally recognized as ordinary and necessary, for the operation of cauttmctor or the pe.rforrnarice of r~e conlTacL (b) Whether the cost was imcurred a~ar r_he contractor complied with sound business practices, indudiag . arm's length bargaining. (c) ~hether the c~ntractor acted with prudence in the cizcunzstances considering i~ responsibilities to the organization, it~ member, employees, client, the public at large amd the department. (d) 've'hether the contractor deviated from established practices of the coa~cactor, which _may unjusrifiab!¥ (t3 A ¢o~c is allocable to the conWact if all of the fotlo~dlig condir/ons ~re met: (a) It is a~ignabla or chargeable to the contract in accordance with the relative benefit re,.:~ived eitheo: (~ it ~w~ incurred spec~c;~lly and solely for the p,~ormance of ~e conWact; or (h~ It b~ bo~ con. Ct ~ non-con.ct objec~ves ~d can be ~uibu~ed hero,teen th~m reasonable propo~on ro the ben~m received; or (~) !t M mecefs~ for ~e ove~ ope~don of the con~cror. · e. ~duded a~ a cost of ~y oth~ ~on~ct, ~L a~eem~~ °r pr°grae' in either .t ~ not ~lo~bte to ~ ........ ~ ~ cost-shrUg or mat~k~g for ~omer contract ~cept wh~ the con. Ct spec~y au~o~ su~ duplicate allocation. of a ~ na~e. It M accorded co~t~t ~ea~ent ~ cas~ Con~ct-Sp~c Dkect Co~: If a,cost ~:~ocable ~o ~e con.ct p~u~t to iub~ec~on ~) (a) (i) of ~ ~ec~or~ ~e''~'e ~lo~nt,may be ~ged: to ~e con~C~ - f a cost M ~locable to ~e con.ct p~u~ to.~ubsec~on ~)(a)(ii) of ~.is ~e~on ~e' ~ge~h~ be; co~iae:ea ~o oe m reasonaot= ~e ~:b~ed on ~e ~i~bu~on records, ~dom moment ~e~Pl~, eqm~ent work mm , ore.ace u~don. O~er eqtIkable methods:may'be ilsed ~,~e p~or~appro~ of ~e:depmltmenL ~ocafion of ch~ges based on rev~ue d~bufion M not ~ acceptable, me'od. In~ec: Co~: If a cost ~ M!ocable to ~e con.act pu~u~t ~o ~ubsecfion 0] (a)(iH) of ~ section, the ~e sh~ be considered ~o be ~ p:opo~on ~ b~efim received ff it Page Reimbm~able C~;~s~ Issued M~rc~ i~ di, triburion of coar~ allocated purmant to subsections (2) and (3) of ~ Section, or if it i~ based on st~ff time directly spent ba contract and non-contract act/vitiea. Other equitable methods may be u.~ed with the approval of the department. Contractors and cost.related aubconrracror~ ~h~.ll maintaka a current cost allocation plan describing how cosr~ are allocated. Deprarm~t approwals required in subsections (3) and (4) of [his seccqon shall be obtained by submkrfng a cost allocation Plan to the department. '[he cost allocation plan shall identify the p-_r/att at' t/me covered by r.h~ plan, the cost itern~ to be allocated, [he allocation method, the program ~re~s to whkh cosl~ are allocated, and the re~ulting allocations using budgeted costs. Copies of indirect cost allocation plan~ mbmitred for fed~l grm'lt pm-poses may be used to apply for department approval under Subsection (4) of thi~ section. A eo~t ~ allowable ~; (1] It ~ aromatized or not prohibited by federal, ~tare or local laws and regulariofis. (2) Ir c~orms to any lknitafionS or exclusions set forth in [he c~ntract terms and approved budget, or in applicable ~nte or ~ledera/l~w ~r (3) It ~:~ ~pproved fr~ adw~mce ,~.nd in *eeriring by the department, if it is a cost requ/rfng approml. (4) It is c~:s[stenz with poiicies~ regi~1arions, E~ecdves ~d proced~es of d*e con~or. k ~ ~ccorded coe~r~r ~eanment through application of gene~ly accepted acco~g p~nciple~. It ~ ade~uatdy do~ented ~ ~o~ce record;; ;u~ ~ payrall reg~te~ and ~volce*. k ~ ~e net of ~ applicable ~e~m, ~u~ a p~e d~sco~t~, rebat , Cc~st~ d~;~ibed in this section are allowable only if they:~re approved/n advance by the. dep~x-rment. Approval sh~ be: d~,emed; given if the,co~ f~ spe~/ficaliy;idenfified in ~the. contract budget or other clause ~r.attacilmenl: to the contras. ~ers:forth:.tlxe:.nature an&amotmt of:the,approved ,cost and..the contract for Which it i~ ~llawed. (ii Clfe. a~:ca~h payments: Any direct each paymanr~ to deparmaental clients are allewabte or2y with prior written ~ppro~d of the department~ (.~) Capital ~dimre3: Co,t of:acquiring by purchase or capitalized lease land, building, or equipment ~:md cost '"~ o~ ~ep~ir, remodeling: renomtfon, or improvemant~ wlMch would: mater/ally increase the value or u~ef%ti life of b~dings are allowable only Mth the prior written approval of the del>am'hens (313 Tx~.f~g: mad educat/on: Cost of training which req 'u/re~ staff to be relieved of regular dude~ for more than ten we,-k~lg days per trotting event f* allowable offiy upon prior wrirmn approval of[he department- Dh'eo: Reimbursable Issued ~S'T EXPENSE (t) Interest on borrowed funds ts allowable if the interest expense meets r~e applicable requiremenrz of this section. (2) Intex'est on borrowed [xmds used to purchase equipment or r,~l property is eglowable w~th the prior written approv~ of the department. {3) Interest on borrowed funds used to create, reptentsh, or maintain worl-d~g capir'af is allowable, i~the following cond/~/ons are met: (a} Working capite/ ts depleted due to unusual cash flow, such as abnormally high cost~ or delays in - reimbU~ement; or workdng capital has been insufficient for ~n extended period of ~itne, because the '-'- conrracter or subcontractor has instrfficienr eligible tnconae in excess of expenses to accumulate adequate working capital. (b) The borrowed funds are not used to supplant fl~.nd~ which otherwise wo~dd be available to Fmance worsting capital, t~orro~,~..1 fi.rods shall be considered, to supplant contractor working capital ff a dec~sion to deplete working capit~l is evident, whether~ie work&ag ?pital ~s depleted before or after the errangemen~ to borrow fi. rods are made. (c) ~t~. e worI ~cL~.g capital in aggregate does not e~ceed r, inety days ce~sh flow. {d) "Flae interest expense ts approved in advance ~nd ~-~ ~vridt~g by the depa.rtme, nL [4) Approv-~l ~halI be deemed given i~ the interest cost i.~ spec~cally iden~ed in the conrrac~ budget or other clause or att'a'chm~at to d'.,e c~nu~ct. Appro~-al of ~xtterest cost not specJfic~ly idenr~ed in the comCcact shall be made by lett~6 ot other docrua~ent whtc~x sets forth ~he narur~ and anao,.mt of r. he approved cost and rahe con,:act trader ~hidt~ ~t ~ allowed. UNALLOWgaBLF~ COST~ The foHov.fimg cos~ ae ~Mlowable, whether ~ed ~ec~y by t~e con.trot, or ~y coat related sui:~con~ctor. (1) Bad d~b~: ~Y lo~se~ ~g ffo~ ~coHec~le acco~n~ ~d ~ d~ ~d related cos~ are ~ double ~y aceo~g ~r~s, ~te-offs of di~t fees:deemed ~mco~ecfibie sh~t be =eared as adj~ (2) ~e~ ~emfive: ~.~e s~es ~d ~emes of ~e ~ exeo~tive of a p~lific~ subdi~ion are ~o~ble. (3) Con~x~g~d~: Con~bufiom to a con~ag~q rese~e or any s~fl~ p~o~sion for m~ore~e~ even~. (4) Gon~bu~o~ ~d~donafio~: Cos~ of a con~exor or subcon~actor ~ ff~e:fo~ of con'hurons md~donadom to o~ or--dom, ~du~g c~s~ of donated se~ices.~ prope~, are ~lowabte. (5) DepcecJafion of ~=re ~auced pr:,p~ Cos~ of depreciadon ~t dep~ent~ p~op~ ~e (6) ~te~r: Cos~ of ~en~, soci~ acfi~d~ and ~ciden~ cos~ rela~g ~eto such ~ me~/, bev~ges, lod~g, r~t~s, ~po~on ~d ~es ~e ~Io~abte, except for cos~ of ~c~Uy for dep~en~ dien~ ~d necess~ e~enses of s~ who supe~e dep~ent~ ~en~ on D~'ect Contract; Keimb,~rsable Cost~ Issued March 1993 ~ Fines and penalties: Costs resulting fi:om v~olat~o~ of or faflvare to comply wkh federal, state, and loc~d laws and regulations are unallowable. (8) F::rsr class ah- accommodations: The difference in cost between first class ai~- accommodations ~md less~r, han-fl~st class air accommodations is unallowable, except when less-~an-first class alt accow~modador!s are not reasonably available. (9) Fund raising: Cost of organized fund rais~g are u~allowable. (10) Legal fees to br~g suk against federal or state govemraemt: Tile cost of legal exl~enses for the prosecution or defense of claims by or ag~st the federal or state government are unallowable. CLX) ' Legislative expenSes: Th~ salaries and ot~er expenses of county councilmen' or coUhcilwomen, supervisors, commissioners, etc., whether i~cuzred for th~ pv~rposes of the legislation or executive ~ecrion~ are unallowable. (123 Lobby~mg expenses: The cost of attempting :o kffluence Iegisla~on pending before my federal or state legislative body is unallowable ~e~cept ~s provided for in p.¢ZAr 42.17.190. Losses: Costs of.acVaal losses whkh could haw been covered either by h2s~rr~nce or by con~-ibutior~ to a self-~surance reserve ~e unallowable, ~cept for losse~ no~ covered ur~der nom~ai deductible i~ra2ace coverage amd mLr~or losses not cowred by L~2ce ~*Md~ occ~ ;t~ ~e ord~ coupe of op~fio~, su~ as spoilage ~d bre~ge- (i4) M~b~hips: Cos= of memb ~ps for individuals ~n cftc, b~e~s, ~ech~cal or profezsion~ o~3~o~ ~e ~iow~bI~. Cv~ of co~ctor or subconL~ctor membe~liips whose predo~ate ac~vi~ i; Lm%e~dv.g leg~sla~on ~'~ v~:~lowible. (i5) Und~,recov~ of cos~ in o~ con=act agre~menr~: ,~iy costs incur'ed ~ excess ot~e fade~ and sm~e conxibudon ~d~ ~y orher'con~'act a~eemeaZ ~ unallowable. ~OW~ CO~$: ~E~Z ALC~RUG A~t~SE,z~ ~AL ~'~ SERXa~S BLOCK G~ (I2 U~s ~ ~ticit ~d:~acffic fed~ wmv~ ~ obrmned, ~e foHo~g costs ae ~lo~able und~ w~& includes fedm~. ~cohol, ~ag ab~e ~d mait~ he~ set~e$ blo~ (a) Costs of hospital h~patien~ services; Cash payn~ems to depaa-rmenral clients; Cost of purchase or permane, ut improvement of l~md or facilities, other than minor remodeling; Co;t of purchase of major medical equipment, with an acquisition cost in excess of:$5,000; Costs t~;ed as cost-shar~g or matckh~g for other federal fund~ requ~g not, federal marching funds; Costs of financial assistance to' any entity which is not either public or nonprofit; or Co,ts which in effect supplant or otherwLse reduce the amount of state or local funds which would have beea used for alcoholism, drug abuse or mental heal~ programs La ~he absence of federal block grant fzu~ding. For t.he pm2voses of this section, supplantation shall be deeme~ to occur if the a~notmr Issued ~ch 1993 of sta~e or local funds used is less than the amount expended d~wing federal fScal year ending September 30, 1981. (h) C,vry out any program of distributing sterile needles for the hypodermic injection of any illegal drug or dist:~budng bleach for the purpose of cleansing needles for such hypodermic injection. [i) Ce_~y out any testing for the etiologic agent for acquired Lmmu~ne deficiency syndrome (AIDS) urdess such testing is accompanied by appropriate pre-test counseling and appropriate p~st.tesl: counseling. EXCESS SALARY: The salary of an ~ndividual at a rate in excess of $120,000 per year pursuan~ to Section 213 of P.L. 101,5~.7, (2) Cost; which are unallowable under subsection (1) of this section are allowable using state 6snds if all of the following conditions are met: The eonwact includes store funds at least equal to nhe total mount of sl! items of cost tmde~' consider.~fion; (b) If the eost~ are incurred by a sn.~bconl2cactor, flue subcontract docu~ent dearly indicates o~Ov stare fi~tuds are included in the subcontract; and (c) The cost i~ otherwise allowable under chis exk~k. AGENDA BILL BREMERTON CITY COUNCIL ~ a] 1. SUBJECT: FOR AGENDA: 1/,,2,2703 CONFERENCE CENTER BOND ISSUE ORB I NANC£ ORIGINATING DEPT: Economic Development ~ Read i Ag) ORIGINATOR: Gary Sexton ~EE49v'xd Dt~ ~O,/&c~ 3Jo. ~'~ DATE SUBMITTED: 1/9/03 2. CLEARANCF~: (Comment on back if necessary) GARY SEX/3eON Economic~Developme..Rt Director ~-' ../>'..>' OP~ERAT/~NS CHAIRMAN ENDORSEM.E,NT [] . FORMATION [] 3. EXHIBITS: -ORDINANCE NO. -BOND SUMMARIES APPROVED FOR SUBMITTAL: COUNCIL PRESIDENT 4. SUMMARY STATEMENT AND REQUIREMENT FOR COUNCIL ACTION: Council action and approval is required for adoption of the proposed ordinance authorizing the ~$ssuance of revenue bonds in the sum of $11,750,000.00, and the execution of related agreements for the Conference Center Parking Garage ~laza. 5. RECOMMENDATION: ~ y 2.2 ,i January 2D: Hove to pass Bond Ordinance No: '~/-/J& on second reading. 7. NOTICE OF ACTION: PULLED [] TABLED [] APPROVED [] COUNCIL DIRECTIVE: 6. RESPONSIBLE OFFICIAL: Director of Economic Development ENFORCEMENT OFFICIAL: Director of Economic Development EXPIRATION DATE: n/a REVIEW DATE: n/a DISAPPROVED [] AMENDEDqD~: 8. AGENDA BILL NO.: 2. CLEARANCE COMMENTS (cont.): 4. SUMMARY STATEMENT (cont.): The Parking Garage, Conference Center and Plaza Hotel Restaurant, office space and retail space is a project partnership of cost splitting and construction including funding from Kitsap Transit, the Kitsap County Public Facilities District, the City of Bremerton and OPUS Northwest. The majority of the City funding contribution will be through a 25 year variable rate demand bond, supported initially by a Bank of America letter of credit, gross parking revenues in the sum of $6,750,000.00 and the balance of $5,000,000.00 from the long term general obligation. 5. IMPACT ON NON-PASSAGE: Non passage would result in breach of contract and failure to proceed with the Conference Center Project. 6. IMPACT ON STAFFING, BUDGETS, FACILITIES, EQUIPMENT OR OTHER RESOURCES There will be no additional staffing and budget resources beyond those already budgeted. 7. RESEARCH SOURCES FINAL DRAFT CITY OF BREMERTON, WASHINGTON AN ORDINANCE of the City of Bremerton, Washington, relating to the incurrence of indebtedness; approving the documents relating to and authorizing the issuance by the City of its WEEKLY RATE DEMAND REVENUE BONDS, 2003 (Kitsap Regional Conference Center Parking Garage), in the principal amount not to exceed $11,750,000, to pay part of the costs of constructing and equipping a parking garage and public plaza in connection with the Kitsap Regional Conference Center; establishing a parking system and parking system revenue fund to secure the bonds; establishing a project account; authorizing the publication and distribution of an official statement pertaining to such bonds; authorizing the negotiated sale of such bonds; authorizing the execution of certain of said documents and said bonds on behalf of the City and other actions necessary or desirable to consummate the sale of such bonds. WHEREAS, the City Council of the City of Bremerton (the "City") has determined that the construction of a new regional conference center (the "Kitsap Regional Conference Center") to be located adjacent to the Bremerton Ferry Terminal together with certain related amenities, including a parking facility (the "Parking Garage"), a restaurant, public transit related facilities, a hotel, pedestrian-oriented retail space, pedestrian-oriented public spaces (the "Plaza Areas") and professional office space will contribute to the region's economy and will benefit the residents of the City; and WHEREAS, the Parking Garage will provide needed parking facilities for residents of the City and other members of the public visiting the Kitsap Regional Conference Center and its related facilities; and WHEREAS, the City receives revenues from certain City-owned parking facilities, on street parking meters and parking violations; and WHEREAS, the City is authorized by chapters 35.41 and 39.46 RCW to issue revenue bonds secured by such revenues to finance the construction of the Parking Garage; and WHEREAS, the City deems it necessary and advisable that revenue bonds in the principal amount not to exceed $11,750,000 be sold and issued to provide funds to pay part of the costs of constructing and equipping the Parking Garage including constructing the Plaza Areas, pay interest on such bonds during construction and up to six months thereafter and paying incidental costs and costs related to the sale and issuance of such bonds; and WHEREAS, the payment of the principal of and interest on the bonds to be issued will be supported by a letter of credit to be issued by Bank of America, N.A.; and WHEREAS, it is deemed necessary and advisable that certain documents necessary in order for the City to issue and sell the bonds be authorized; NOW, THEREFORE, THE CITY OF BREMERTON DOES ORDAIN AS FOLLOWS: Section 1. Definitions. Unless the context otherwise requires, the terms defined in this section, for all purposes of this Ordinance (including the recitals hereto) and of any ordinance supplemental hereto, shall have the meanings herein specified; words importing the singular number include the plural number and vice versa: "Additional Bonds" means one or more series of additional parity bonds of the City issued as permitted pursuant to the Indenture. "Bank" means Bank of America, N.A. "Bond Fund" means the fund of that name created pursuant to Section 7.01 of the Indenture for the purpose of paying and securing the principal of and interest on the Bonds. "Bonds" means the 2003 Bonds and any Additional Bonds issued pursuant to the Indenture. "City" means the City of Bremerton, Washington, a first class city, organized and existing under State law. "City Council" means the City Council of the City. "Code" means the Internal Revenue Code of 1986, as heretofore or hereafter amended, together with all applicable rulings and regulations heretofore or hereafter promulgated thereunder. "Date of Issue" means the date when the 2003 Bonds are delivered to the Purchaser in exchange for payment in full therefor "Indenture" means the Trust Indenture, dated as of Febmary 1, 2003, by and between the City and the Trustee, including any indentures supplemental or amendatory thereto made in conformity therewith. "Letter of Credit" means the irrevocable, direct-pay letter of credit delivered to the Tmstee by the Bank pursuant to the Reimbursement Agreement, and shall include any amendments and extensions thereof. "Letter of Representations" means the Letter of Representations, between the City and The Depository Tmst Company as Custodian pertaining to the payment of the 2003 Bonds and the "book-entry" system for evidencing the beneficial ownership of the 2003 Bonds prior to the termination date of such book-entry system. 2 "Net Revenue" means the Revenues of the Parking System less the Operating and Maintenance Expenses. "Operating and Maintenance Expenses" means all reasonable expenses, such as lighting, concrete repair and painting, incurred by the City in causing the Parking System to be operated and maintained in good repair, working order and condition, but excluding (a) depreciation, any City-imposed taxes or payments in lieu of taxes, (d) management fees to third parties, ~ other costs of collection of parking fees, including but not limited to expense, if any, of having City employees collect parking fees and other administrative overhead and (f) debt service on any obligations payable from the Revenues of the Parking System. "Owner" means the person named as the registered owner of a Bond on the registration books for the Bonds. "Parking Garage" means the parking facility associated with the Kitsap Regional Conference Center. "Parking System" means the existing parking facilities and lots of the City, which is comprised of the following properties: Roosevelt lots, City parking garage, Fifth and Park lot and the Craven lots, all metered on-street parking in the City and all fees collected from parking violations, together with all additions thereto and betterments and extensions thereof heretofore or hereafter made, including the Parking Garage. "Plaza Areas" means the pedestrian-oriented public spaces associated with the Parking Garage and the Kitsap Regional Conference Center. "Purchase Agreement" means the Bond Purchase Agreement for the Bonds by and between the City and the Underwriter. "RCW" means the Revised Code of Washington, as amended. "Reimbursement Agreement" means the Initial Reimbursement Agreement, dated the ~Ve~-og4~aoFebmary 1, 2003, by and between the City and the Bank, including any amendments thereto made in conformity therewith. "Reimbursement Obligations" means ail amounts owing from time to time by the City to the Bank under the Reimbursement Agreement. "Remarketing Agent" means (a) Banc of America Securities LLC or (b) any successor remarketing agent for the Bonds appointed in accordance with the Indenture. "Remarketing Agreement" means the Remarketing Agreement, dated February 1, 2003, by and among the City, the Trustee and the Remarketing Agent providing for, among other things, the orderly remarketing of Bonds following tenders and purchase as provided herein. "Revenue Fund" means the Parking System Revenue Fund created in this Ordinance. "Revenues of the Parking System" means all the earnings and revenue received by the Parking System from any source whatsoever, except general ad valorem taxes, grants from the state or federal governments and bond proceeds. "State" means the State of Washington. "Trustee" means U.S. Bank National Association, as trustee, paying agent, registrar, authenticating trustee and transfer agent, all in accordance with the Indenture, or any successor thereto under the Indenture. "2003 Bonds" means the City of Bremerton, Washington Weekly Rate Demand Revenue Bonds, 2003 (Kitsap Regional Conference Center Parking Garage), dated the Date of Issue, in a principal amount not to exceed $11,750,000. "2003 Project" means the payment of part of the costs of constructing and equipping the Parking Garage, including constructing the Plaza Areas, payment of interest on the 2003 Bonds during construction and for six months thereafter and payment of the incidental costs and costs of issuing the 2003 Bonds. "2003 Project Account" means the "2003 Bond Project Account (Parking Garage)" in the Conference Center Capital Improvement Fund (Fund 301) of the City. "2003 Project Costs" shall include all costs relating to the 2003 Project, including, but not limited to, all costs for the completion of the development, design, permitting and construction of the 2003 Project, including all labor, material, and equipment used or incorporated in such design and construction, all amounts paid to the general contractor, other contractors and subcontractors, services provided by architects, engineers, environmental consultants, surveyors and other professionals and consultants retained by the City in connection with the 2003 Project, insurance, bonds, applicable state and local retail sales, business and occupation and other taxes, payments of capitalized interest on the 2003 Bonds during construction and six months thereafter, any contingency, costs incidental thereto and costs of issuing the 2003 Bonds. "Underwriter" means Banc of America Securities LLC. Section 2. Purpose and Description of 2003 Bonds. The City authorizes the sale and issuance of its "Weekly Rate Demand Revenue Bonds, 2003" for the purpose of paying part of the costs of the 2003 Project. The 2003 Bonds shall be in a principal amount not to exceed $11,750,000 and shall have the provisions and conditions, including date, denominations, number, interest rate, maturity, and redemption as shall be provided in the Indenture. Section 3. Establishment of Revenue Fund; Priority of Payments; Pledge of Revenues. There is hereby created and established a Parking System for the City (the "Parking System") to consist of the existing parking facilities and lots of the City, all metered on-street parking in the City and all fees collected from parking violations, together with all additions thereto and betterments and extensions thereof heretofore or hereafter made, including the Parking Garage. There is hereby created and established in the office of the Finance Director a special fund to be designated as the "Parking System Revenue Fund" (the "Revenue Fund"). The City shall deposit the Revenues of the Parking System into the Revenue Fund. The City will use, pay out and distribute the Revenues of the Parking System in the following order of priority: (a) To pay Operating and Maintenance Expenses; (b) To make payments into the Bond Fund in order to meet the required debt service payments on the Bonds or to pay Reimbursement Obligations as provided in the Indenture; (c) To meet the required debt service on any revenue bonds issued having a charge and lien on the Revenues of the Parking System junior to the 2003 Bonds and Additional Bonds; and (d) To pay management fees or other costs of collection of parking fees, including but not limited to the expenses, if any, of having City employees collect parking fees and other administrative overhead related to the Parking System, subiect to restrictions in the, Reimbursement Agreement; and (e) To redeem and retire any then outstanding revenue bonds or to purchase any or all of those bonds in the open market, or to make necessary betterments and replacements of or repairs, additions or extensions to the Parking System, or to transfer to the Street Fund or Park Fund of the City as authorized by the City Council or for any other lawful purpose. The Revenues of the Parking System are hereby pledged for the payment of the 2003 Bonds and any Additional Bonds which may be issued hereafter. This pledge shall constitute a lien and charge upon such Revenues of the Parking System prior and superior to any other liens and charges whatsoever, subject only to Operating and Maintenance Expenses, and to a parity lien pledge to the Bank to secure the Reimbursement Obligations. Section 4. Other Covenants of the City. The City covenants and agrees with the Owners of each of the Bonds and the Bank as follows: (a) The City shall maintain, preserve and keep the Parking System in good repair, and operate the Parking System in an efficient manner and at a reasonable cost. (b) The City shall not incur any obligations secured by a lien on the Revenues of the Parking System that is superior to the lien and pledge of the Revenues securing the Bonds, other than a parity lien pledge to the Bank to secure the Reimbursement Obligations. Nothing herein contained shall prevent the City from issuing revenue bonds or other obligations which are a charge upon the Revenues of the Parking System junior or inferior to the charge of the Bonds upon the Revenues of the Parking System. 5 (c) To the extent that insurance coverage is available with responsible insurers, the City shall keep the Parking System and the operation thereof insured against the risks of direct physical loss, damage or destruction, and against accidents, casualties or negligence, including liability insurance and employer's liability, at least to the extent that similar insurance is usually carried by cities operating like properties (such insurance may include a program of self insurance). (d) The City will keep proper and separate accounts and records in which complete and separate entries shall be made of all transactions relating to the Parking System, and it will furnish the Owner(s) of the Bonds, at the written request of such Owner(s), complete operating and income statements of the Parking System in reasonable detail covering any calendar year not more than 120 days after the close of such calendar year and it will grant any Owner(s) of at least twenty-five percent of the outstanding Bonds the right at all reasonable times to inspect the entire Parking System and all records, accounts and data of the City relating thereto. Upon request of any Owner of any of the Bonds, it also will furnish to such Owner a copy of the most recently completed audit of the City's accounts by the State Auditor of Washington. (e) The City may sell, transfer or otherwise encumber or dispose of any or all of the properties, facilities or other part of the Parking System or any real or personal property comprising a part of the System only consistent with one or more of the following: (1) The City in its discretion may carry out such a sale, transfer or disposition (each, as used in this subparagraph, a "transfer") if the facilities or property transferred are not material to the operation of the Parking System, or shall have become unserviceable, inadequate, obsolete or unfit to be used in the operation of the Parking System or are no longer necessary, material or useful to the operation of the Parking System; or (2) The City in its discretion may carry out such a transfer if the aggregate depreciated cost value of the facilities or property being transferred under this subparagraph (2) in any fiscal year comprises no more than 3% of the total assets of the Parking System; or (3) The City in its discretion may carry out such a transfer, subject to any restrictions in the Reimbursement Agreement, if the City receives from the transferee an amount equal to the greater of the following: (A) An amount which will be in the same proportion to the net amount of Bonds then outstanding (defined as the total amount of the Bonds less the amount of cash and investments in the Bond Fund and accounts therein) that the Revenues of the Parking System from the portion of the Parking System sold or disposed of for the preceding year bears to the Revenues of the Parking System for that period; or (B) An amount which will be in the same proportion to the net amount of Bonds then outstanding (as defined above) that the Net Revenue from the portion of the Parking System sold or disposed of for the preceding year bears to the total Net Revenue for such period; or 6 (C) An amount equal to the fair market value of the portion of the Parking System transferred. As used herein, "fair market value" means the most probable price that a property should bring in a competitive and open market under all conditions requisite to a fair sale, the willing buyer and willing seller each acting prudently and knowledgeably and assuming that the price is not affected by coercion or undue stimulus. The proceeds of any transfer under this subparagraph (3) shall be used first, to promptly redeem, or irrevocably set aside for the redemption of, Bonds and pay all Reimbursement Obligations, and, if any proceeds remain, second, to provide for part of the cost of additions to and betterments and extensions of the Parking System. Section 5. Approval of Documents Pertaining to Issuance of 2003 Bonds. (a) The City hereby authorizes, accepts and approves all the terms and conditions of the following documents in substantially the forms available to the City on this date, which documents authorize, inter alia, (i) the issuance of the 2003 Bonds in an aggregate principal amount not to exceed $11,750,000 to provide part of the funds necessary for the 2003 Project; (ii) the appointment of the Trustee to serve as such for the benefit of the Owners of the 2003 Bonds; (iii) the establishment by the Trustee of a "Bond Fund" as a special fund for the payment of and security for the 2003 Bonds; (iv) the appointment of Banc of America Securities LLC, as the initial Remarketing Agent; (v) the pledge of Revenues of the Parking System to the Owners of the Bonds and the Bank, as security for and to pay debt service on the 2003 Bonds and the Reimbursement Obligations; (vi) in the event the Revenues of the Parking System are insufficient to pay the Reimbursement Obligations, the general obligation pledge to the Bank, subject to an aggregate limit on such general obligation payments of-not to exceed 5,870,000 over the term of the Bonds; and (vii) the pledge of the proceeds of the 2003 Bonds in the 2003 Project Account as further security for the Reimbursement Obligations,: (1) The Indenture; and (2) The Reimbursement Agreement; and (3) The Letter of Credit; and (4) The Remarketing Agreement; and (5) The Letter of Representations. Section 6. Sale of 2003 Bonds. The City hereby authorizes and directs the Finance Director of the City to negotiate the sale of the 2003 Bonds to the Underwriter to accomplish the 2003 Project. The 2003 Bonds shall be sold pursuant to the Purchase Agreement in substantially the form available to the City on this date, the terms and conditions of which the City hereby accepts and approves. The 2003 Bonds shall be in the aggregate principal amount, mature on such dates, bear interest at such rates per annum, be subject to redemption and/or prepayment, 7 bear such date(s), and be sold at such pumhase prices as are set forth in the Purchase Agreement, provided that: (a) The principal amount of the 2003 Bonds shall not exceed $11,750,000; (b) The initial Weekly Rate for the 2003 Bonds shall not exceed 5.50%; and (c) The final maturity of the 2003 Bonds shall be no later than December 1, 2028. The City authorizes and directs either the Mayor or the Finance Director of the City to execute, for and on behalf of the City, a Purchase Agreement in substantially the form available to the City on this date and conforming to the requirements of this Ordinance, and to deliver the same to the Underwriter. Section 7. Establishment of 2003 Project Fund, Application of 2003 Bond Proceeds. There is hereby created and established in the office of the Finance Director a special account in the Conference Center Capital Improvement Fund (Fund 301) of the City to be known as the "2003 Project Account (Parking Garage)." On the Date of Issue, immediately upon receipt of the net proceeds of the 2003 Bonds from the Trustee, such proceeds shall be deposited by the City into the 2003 Project Account to pay the 2003 Project Costs. Section 8. Authorization to Conform, Execute and Deliver Documents and the 2003 Bonds and to Consummate Sale. The Finance Director and the Mayor of the City, or either of them acting alone, are each hereby authorized and directed to execute, for and on behalf of the City, and to deliver to the parties entitled to executed copies of the same, the Indenture, the Reimbursement Agreement, the Remarketing Agreement, the Letter of Representations, the Official Statement and all other certificates, documents and other papers which, in the judgment of either the Finance Director or the Mayor of the City are necessary to the issuance, sale and delivery of the 2003 Bonds for the 2003 Project, in each case, with such additions, deletions and modifications as are hereafter deemed by the Finance Director or the Mayor of the City (whoever actually executes such documents) to be necessary to conform such documents to the Purchase Agreement and to each other, and/or to be in the best interests of the City. The Mayor and the City Clerk are hereby authorized and directed to execute, for and on behalf of the City, each and every 2003 Bond, in substantially the form set forth in the Indenture and in the manner set forth in the Indenture. The Finance Director and the Mayor of the City, or either of them acting alone, are hereby authorized and directed to take such other actions to consummate the sale of the 2003 Bonds as may be necessary or desirable, as contemplated by the Purchase Agreement, including, but not limited to, the approval, publication, execution and distribution of an__~ final Official Statement pertaining to the 2003 Bonds, as contemplated by the Purchase Agreement. Section 9. Contract; Severability. The covenants contained in this Ordinance shall constitute a contract between the City and the Owners of each and every Bond. The City unconditionally covenants that it will keep and perform all of the covenants of the Bonds and this Ordinance. If any one or more of the provisions of this Ordinance shall be declared unconstitutional or invalid for any reason, such decision shall not affect the validity of the remaining provisions of this Ordinance or the Bonds, and this Ordinance and the Bonds shall be construed and enforced as if such unconstitutional or invalid provision had not been contained herein. Section 10. Effective Date. This Ordinance shall take effect and be in full force ten days after passage and publication of an approved summary, consisting of the title. APPROVED by the City Council of the City of Bremerton, Washington, the January, 2003. day of PASSED bytheCityCounciloftheCityofBmme~on, Washington, this January, 2003. day of APPROVED this Council President day of January, 2003. Cary Bozeman, Mayor ATTEST: Kathleen McCluskey, City Clerk APPROVED AS TO FORM: By Judith Andrews, Bond Counsel PUBLISHED: EFFECTIVE DATE: ORDINANCE NO. 9 City of Bremerton January' 6, 2003 Prepared By Jane Tower}, Managing Director Banc of America Securities LLC 800 Fifth Avenue, Floor 34 Seattle, WA 98104 206-358-8991 206-358-8818 Fax Banc of America Securities LLC Bank of Kmm'ioa.~. BOND TERM SHEET .................................................................................................................................... PROPOSED SCOPE OF INVESTMENT BANKING SERVICES AND FEES ...................................... H PROJECTED TIMETABLE AND SCHEDULE OF EVENTS .............................................................. Ill DESCRIPTION OF VARIABLE RATE DEMAND NOTES .................................................................... IV REASONS TO SELECT BANK OF AMERICA ......................................................................................... V Bankof 4merica . Banc of America Securities LLC I. BOND TERM SHEET ISSUER: PURPOSE: INTEREST RATE MODE: INTEREST RATE PROTECTION: ESTIMATED AMOUNT: AMORTIZATION: PREPAYMENT PROVISIONS: PRIMARY SECURITY: ADDITIONAL BOND GUAR.adqTEE: RATINGS: COVENANTS & CREDIT TERMS: UNDERWRITER: REMARKETING AGENT (if in variable rate mode): TRUSTEE/PAYING AGENT/ REGISTRAR: MATURITY OF BONDS: DENOMINATIONS: City of Bremerton Parking Garage Weekly; multi-modal To be determined. $ I 1,500,000 25 Years Interest only 3 years, Payment of principal of a level debt service basis over the term of the issue. Pre-payable at any time without penalty with 30 days notice if in variable rate mode. Pre-payable at 10 years if in t-ned rate mode. The gross revenues of Parking Revenue System. Letter of Credit by Bank of America providing a guarantee of all principal and interest due on the Bonds. Letter of Credit, Standard & Poor's AA-, Fitch AA, Moody's A. A1, long terra ratings. To be negotiated with Letter of Credit Bank. Banc of America Securities, LLC (the "Underwriter"). Banc of America Securities, LLC To be determined. 25 year final maturity. The Bonds will be registered and issued in denominations of $ I00,000 in the variable rate mode and integral multiples thereof. In the fixed rate mode, the Bonds will be issued in denominations of $5,000 and integral multiples thereof. BankofAmerica~. Banc of America Securities LLC BOND TERM SHEET INTEREST DETERMINATION: INTEREST PAYABLE: OPTIONAL REDEMPTION: INVESTOR'S OPTIONAL TENDER: REMARICETING: LETTER OF CREDIT & LIQUIDITY SUPPORT: DRAWS ON L/C: If in variable rate mode, Bonds will be repriced weekly by the Remarketing Agent on each Tuesday and will be effective for the weekly interest period commencing Wednesday of the same week. Variable rate bond interest will be payable monthly, and will be computed on an actual/actual day basis payable on the first business Wednesday of each month. Fixed rate interest will be payable semiannually, and will be computed on a 30/360 day basis. Variable rate bonds will be callable at par by the City on any date upon 45 days prior notice to the Paying Agent, the L/C/Bank and the Remarketing Agent. Upon seven calendar days prior written notification investors may demand that the Bonds be repurchased at par plus accrued interest while the Bonds are in a variable rate mode. While in variable rate mode, the Remarketing Agent will remarket the Bonds tendered by investors for repurchase. If the Bonds are not remarketed by the end of business of the 7~ day a.~er tender notification, the Paying Agent will draw upon the L./C in order to pay the purchase price and, pending remarketing, the Bonds will be held by the Paying Agent for the account of the Bank. The Life Bank will issue a direct pay Letter of Credit The L/C will be in an amount equal to the outstanding principal on the Bonds plus interest equal to an amount calculated at the maximum interest rate applicable to the Bonds. The Paying Agent shall draw on the EriC to pay the principal of and interest on the Bonds when due, whether at maturity or by reason of any redemption or acceleration. The Paying Agent will also draw on the L/C for liquidity in the event the Remarketing Agent is unable to market the Bonds at, er an optional tender by an investor. The City will enter into an agreement with the I_ftC Bank (the "Reimbursement Agreement") which will obligate the City to reimburse drawings on the L/C and will contain redemption requirements, indemnity provisions, security provisions, and financial covenants satisfactory to the L/C Bank. Following a draw on the L/C to pay interest, the interest component of the L/C will be automatically reinstated except under certain circumstances whereby the L/C Bank notifies the Paying Agent to the conU'ary. Ifa drawing is made resulting fi.om the exercise of the investor tender option, the L/C will be reduced and will not be reinstated until the Bonds are remarketed by the Bank fAmerica. Banc of America Securities LLC BOND TERM SHEET ACCELERATION: RATING: Remarketing Agent. Under the Reimbursement Agreement, such drawings will be reimbursed. All other drawings will be reimbursed immediately on the same business day. The Reimbursement Agreement may also specify the terms and conditions under which the City may exercise any optional redemptions or convert to a fixed interest rate on the Bonds. The Bonds are subject to acceleration upon certain events, including, but not limited to: default in the payment of principal or interest, other defaults of the bond documents, taxability, bankruptcy or certain ca~xophic events. Based on the Bank's Letter of Credit rating. LEGAL OPINIONS: Legal opinions, in form and substance satisfactory to Underwriter and L/C Bank and their respective counsel including the unqualified opinions of bond counsel and City counsel. BankofAmerica~. Banc of America Securities LLC II. PROPOSED SCOPE OF INVESTMENT BANKING SERVICES AND FEES BANC OF AMERICA SECURITIES' ROLE AS INVESTMENT BANKER To carry out the issue on behalf of the City of Bremerton, Bane of America Securities LLC will provide the following 4 Organize the txansaction by coordinating the activities of the bond counsel, letter of credit bank, bank counsel, and paying agent; 4 Make the necessary contact with the appropriate parties and coordinate all activities required for issuance; 4 Coordinate the preparation of an offering document to provide pertinent information about the transaction to investors; 4 Coordinate credit enhancement via the Bank Letter of Credit; 4 Market the bonds to investors; 4 Close and fund the transaction; 4 Arrange for the effective reinvestmeut of bond proceeds pending disbursement, if requested; 4 Arrange an interest rate cap, if desired; and 4 Remarker Variable Rate Demand Bonds on an ongoing basis after issuance. INVESTMENT BANKING FEES FOR THE UNDERWRITING/PLACEMENT OF THE ISSUE, Banc of America Securities LLC's proposed investment banking fee for a fixed rate financing would be a maximum of $8.50 per $1,000. This fee is to include all costs of the services described above, including sU'uct~ring the issue, assisting with and negotiating credit enhancement, coordinating issuer, rating and documentation activity, marketing, undervaiting and funding the issue. REMARKETING FEES The ongoing remarkerS, rig fee for a weekly variable rate issue would be established at 10 basis points, subject to a $5,000 minimum, annually for remarketing services provided. COSTS OF ISSUANCE Bane of America Securities would assist as requested in contacting, selecting and negotiating service fees with qualified providers. All costs of the Underwriter are paid through the underwriter's discount, except Under'writer's Counsel, which fee is expected to be no more than $10,000. Bankof America . Banc of America Securities LLC III. PROJECTED TIMETABLE AND SCHEDULE OF EVENTS WEEK 1 WEEK2 WEEK 4 WEEK $ WEEK 5 WEEK 6 Responsible Parties Organizational Meeting to Determine Credit and Bond Structure, Issuer Process, Responsibilities, & Schedule Initial Negotiation of Letter of Credit Terms CITY/CE Credit Enhancement Terms Finalized and Agreement Drafted CITY/CF_./CEC Meeting of Full Financing Team to Define Documentation Required, All Responsibilities and Schedule Initial Drafts of Bond, Credit Enhancement and Underwriting BC/CEC/UW Documents Review and Comment on All Documents All Documents in Substantially Final Form Distn'buted to All Parties Issuer Action Authorizing Sale CITY/BC/UW Price and Market Bonds UW Execution of Bond Purchase Agreement UI_IW Finalization of All Documents CITY/BC/CEC/UW Closing and Delivery All CITY/BC/UW Financing Participants CITY Issuer BC UW Bond Underwriter CE T Payin~ A~ent CEC Bond Coumel Credit Enhancer Credit Enhancer Counsel BankofAmerica~ Banc of America Securities LLC IV. DESCRIPTION OF VARIABLE RATE DEMAND NOTES SUMMARY TERMS AND FEATURES OF TAX EXEMPT VARIABLE RATE NOTES A general description of Tax Exempt V.__ariahle Rate Demand Notes ("low floatem" or "VRDNs") is provided on the following pages. The primary features of these securities are described below: 4 Seven-day Variable Rate Demand Note. While interest rate reset periods fi.om one to 180 days can be elected, the seven-day VRDN continues to be the most common and liquid form of variable rate notes. 4 VRDNs issued at par providing a "put option" that gives the investor the option to put bonds for purchase to a remarketing agent at par. The bonds may be put at any time by the bondholder, upon 7-days notice. 4 Credit support in the form of a Letter of Credit fi.om a Bank providing an invesm~ent grade rating ora or higher. 4 A credit facility insuring liquidity of the weekly put option. This may be provided by the same credit enhancer guaranteeing the primary debt service on the notes. 4 A Remarketing Agreement and Agent providing that any bonds put are resold to other third party investors on an ongoing basis. 4 A bond maturity of up to 25 years, subject to the provision of ongoing credit enhancement through the Letter of Credit 4 Interest rates mode flexibility: while the initial issue will be in the form of a seven-day variable rate note, provisions can be made for all or a portion of the issue to be converted to a fixed rate at the discretion and direction of the City. PRIMARY BENEFITS OF VRDNs 4 Lower interest rates reflecting a high grade investment rating and the highest degree of liquidity of any tax exempt obligation: - Tax exempt average rate, last I 0 years: 3.10% - Tax exempt average rate, last 5 years: 2.97% Reduced disclosure requirements of the City, for both the initial offering and ongoing financial discinsure requirements. Prepayment flexibility; no "lock out" period on prepayment penalties. Ability to limit interest rate risk through the use of interest rate management products, such as interest rate swaps or caps. 4 4 4 Bankof America~. Banc ofAmedca SecuH~es LLC V. REASONS TO SELECT BANC OF AMERICA SECURITIES 4 Bank of America and Bane of America Securities have the financial resources and capabilities of the nations' largest banking institution. 4 Bane of America Securities ("BAS") has the capability to underwrite, place or purchase all t'~pes of tax exempt and taxable debt. 4 BAS has the specialized investment banking expertise in non-profit and project finance. 4 Extensive and current experience in providing tax exempt and taxable bond financings and credit. 4 Bank of America has the credit capacity and AA rating to back the bond issue and assure the lowest borrowing rato. 4 BAS has the diverse sales capacity to access effectively all elements of the municipal investor market; retail, corporaIe and institutional. 4 Municipal sales and trading oapacity provided directly by our four underwriting desks. 4 BAS has the capacity to develop and execute any of the debt options and services required to meet the financing needs of the City of Bremerton: bond underwriting, placement or purchase, provision and solicitation of credit enhancement, fixed or variable rate structures, utilization of interest rate products and investment of proceeds. 4 Bank of America and Bane of America Securities has a strong community presence and accountability to the City of Bremerton. Bank of America's tradition and reputation as a corporate citizen of the Bremerton is extended and enhanced by its commitment to the local govemmant and non-profit agencies it serves, as well as the substantial number of Bremerton citizens. BankofAmerica. Banc of America Securities LLC 10 yr History - BMA vs. RBI 8.00 6.00 .oo 34'00.00 1.00 0.00 BMA Bond Market Association Index is the average weekly reset rate for variable rate debt on a national basis. RBI Revenue Bond Index is the 25-year Revenue Bond Index Rate for AA+ revenue bonds on a national bask. Legal Debt Capacity City of Bremerton, Washington Computation of Debt Capacity (As of December 31,2002) 2002 Collection Year Assessed Valuation Limited Tax General Obliqation Capacity 1.5% of Assessed Value Less: Outstanding Limited Tax G.O. Debt Abatement Line of Credit Current Remaining Limited Tax General Obligation Capacity Less: Future Commitments Conference Center Parking Garage Government Center Future Remaining Limited Tax General Obligation Capacity Unlimited and Limited Tax General Obliqation Capacity 2.5% of Assessed Value Less: Outstanding Limited Tax G.O. Debt Less: Future Limited Tax G.O. Debt Less: Outstanding Unlimited Tax G.O. Debt Total Remaining Unlimited Tax and Limited Tax Capacity $ 1,568,585,817 $ 23,528,787 (9,160,000) (217,363) 14,151,424 (5,000,00O) yet to be determined $ 9,151,424 $ 39,214,645 (9,377,363) (5,000,000) /13,609,000) $ 11,228,282 CITY OF B REM~R TON Existing Bonded Debt · Voted debt (Unlimited Tax General Obligation) Unlimited Tax General Obligation Bonds $0 CITY OF BREMERTON BOND DEBT SERVICE Penod Lq ~erest Debt Service Ending Pnncipal Coupon 12/03/2002 02/01/2003 205,000 4.450% 14,233.75 292,753.13 06/01/2003 9.672.50 08/01/2003 792.753.13 12/01/2003 339~000 2.500% - 02/01/2004 135,000 4.500% 9 ,672.50 288 515.63 06/01/2004 6,635.00 08/0t/2004 188.296.88 Annual Debt Service 219,233.75 292.753.13 9.672.50 631,753.13 1,153,412.51 2g8,515.63 613.515.63 1,053,338.76 146,635.00 284.453.13 3,450.00 619.453.13 1,053.991.26 153.450.00 280.265.63 620.265.63 1.053.981.26 275.165.63 625.165.63 900,331.26 269,478.13 634,478.13 903,956.26 262,634.38 642,634.38 905.268.76 255.034.38 650,034.38 905.068.76 247,134.38 657,134.38 904,268.76 238,421.88 663.421.88 901.843.76 229,390.63 674,390.63 903,781.26 219,934.38 679,93~..38 899,868.76 210,159.38 690,159.38 900,318.76 199,659.38 704,659.38 904,318.76 188,296.88 7 13.296.88 901,593.76 176.484.38 726,484.38 902,968.76 163,765.63 738,765.63 902,531.26 150,468.75 750,468.75 900,937.50 135,843.75 7 65.843.75 901,687.50 119,306.25 784,3D6.25 903,612.50 101,850.00 801,850.00 903,700.00 83,475.00 g 18,475.00 901,950.00 64.181.25 CFIT OF BREME_R.TON BOND DEBT SERVICE 06/01/2027 22.443.75 22,443.75 12/01/2027 855,000 5.250% 22.443.75 877,443.75 899,887.50 13,609,0~0 9,659,655,17 23268,655.17 23,268,655.17 57 CTTY OF BKEJViERTON Period Ending BOND DEBT SERVICE Annual Debt Service 12/03/2002 06/01/2003 292353.13 292,75313 12/01/2003 339,000 2.500% 292,753.13 631.75313 924.506.26 06/01/2004 288,515.63 288,515.63 12/01/2004 325,000 2.500% 288,515.63 613.515.63 902,031.26 0610112005 284,453.I3 284,453.13 12/01/2005 335,000 2.500% 284,453.13 619,453.13 903,906.26 06/01/2006 280,265.63 280,265.63 12/01/2006 340,000 3.000% 280.265.63 620~265.63 900,531.26 06/01/2007 275,165~63 275.165.63 12/01/2007 350,000 3.250% 275.165.63 625.165.63 9{)0,331,26 06/01/2008 269,478.13 269,478.13 12/01/2008 365,000 3.7505'0 269,478.13 634,478.I3 903,956.26 0610112009 262,63438 262,634.38 I2/01/2~09 380,000 4,000% 262,63438 642,634.38 905.268.76 06/01/2010 255,034 38 255.034.38 12/01/2010 395,000 4.000% 255,03438 650,034.38 905,068.76 06t01/2011 247.I34.38 247.t34.38 12/01/2011 410,000 4.250% 247,134.38 657,134.38 904,268.76 06/01/2012 238,421.88 238,421.88 12/01/2012 425.000 4250% 238,421.88 663,421.88 901,843.76 06101/2013 229,390.63 229,390.63 I2/01/2013 445,000 4.250% 229,390.63 674,390.63 903,781.26 06/01/2014 219,934.38 219,934.38 1210112014 460,000 4.250% 219,934,38 679,934.38 899,868.76 06/01/2015 210,159.38 210,159.38 12/01/2015 480,0C0 4.375% 210.15938 690,159.38 900,318.76 06/01/2016 199,65938 199,659.38 12/01/2016 505,000 4~00% 199,659.38 704.659.38 904,318.76 06t01/2017 188,296.88 188,296.88 12/01/2017 525,000 4200% 188.296.88 7 13,296.88 901.593.76 06/01/2018 176A84.38 I76,484.38 12/01/2018 550,000 4.625% 176A84.38 726,484.38 902,968.76 06/01/2019 163.765.63 163,765.63 12/01/2019 575,000 4.625% 163,765.63 738,765.63 902,531.26 06101/2020 150A68.75 150,468.75 12101/2020 600,000 4.875% 150,468.75 750,468.75 900,937.50 06101/2021 135,843.75 135.843.75 12/01/2021 630,000 52.50% 135.843.75 765,843.75 901,687.50 06/01/2022 119~306,25 119,306.25 12/01/2022 665,000 5.250% 119,306.25 784,306.25 903,612.50 06101/2023 101,850.00 101,850.00 12/0112023 700,000 5.250% 101.850.00 801,850.00 903,700.00 0610112024 83.475.00 83,475.00 12/01/2024 735,0t30 5.250% 83,475.00 818,475.00 901,950.00 06/01/2025 64,18125 64,181.25 12/01/2025 775,1300 5.250% 64.181.25 8391181.25 903,362.50 CFZT OF BRF~ERTON BOND DEBT SERV1CE CuT OF B~ERTO~ BOND DEBT SERVICE Civj of Bremenon Unbmited Tax General Obligation Reft Bonfla. 1997 Dated Date 12,01/1997 Delivery Date 12/09/1997 Period Annual Ending Principal Coupon lmerest Debt Service Debt Service 02/01/2003 205,000 4.450% 14.233.75 219,233.75 219,233.75 OglOll2003 9,672.50 9,672.50 02101/2004 135.000 4,500% 9.672-50 144,672.50 154,345.00 08/0112004 6.635.00 6,635.00 02/01/2005 140,000 4-550% 6,635.00 146.635.00 153,270.00 08/01/2005 3,450.00 3,450.00 02/01/2006 150,000 4,600% 3,450.00 153,450.00 156,900.00 630,000 53.74 g.75 683,748.75 683,748.75 C77Y OF BRE~.ERTON BOND DEBT SERVICE Period Annual Ending Pnncipal Coupon lnmrest Debt Service Debt Service 06/01/2003 225.371.25 225,371.25 12.t01/2003 955~000 ** 225.37125 680,371.25 905,742.50 12/01/2004 480,000 ** 215.175.00 695.175.00 910.350.00 06/01/2005 204.323.I3 204,323.13 12/0112005 500,000 ** 204,323.13 704,323,13 908.646.26 06/tH12006 t92.696.88 192.696.88 12101/2006 520.000 ** 192.696.88 712,696.88 905,393.76 06/01/2007 180351.25 180,351.25 12/01/2007 545.000 ** 180,35 [.25 725.351.25 905,702.50 06/0 t/2008 167.251.25 167.25 [ "25 12/01/2008 575,000 *"~ 167,25 [,25 742,251.25 909,502.50 06/0t/2009 153.196.25 i53.196.25 12/01/2009 600,000 ** 153.19625 753.196,25 906.392.50 06/01/2010 138,398.75 138,398.75 1~01/2010 630,000 ** 138398.75 76g.398.75 906,797.50 12/01/2011 670.000 ** 122,590.00 792.590.00 915.180.00 06/0112012 105.717.50 105,717.50 1210112012 700,000 ** 105.717.50 805,717.50 911.435.00 0610112013 87.750.00 87,750.00 1210112013 450,000 ~ 87,750.00 537.750.00 625.500.00 06/0112014 76.797.50 76.797.50 12/01/2014 475.000 '~* 76,797.50 551.797.50 628.595.00 06/0112015 65,066.25 65.066.25 12/0t/2015 485,000 ** 65,066"25 550.066.25 615,132.50 06/01/2016 52.930.00 52.930.00 12/01/2016 515.000 ** 52,930.00 567,930.00 620.860.00 06/0112017 39,906.25 39.906.25 12/01/2017 540,000 ** 39,906.25 579,906.25 619,812.50 06/01/2018 26,116.25 26,116,25 12/01/2018 565,000 ** 26,116.25 591,116.25 617.232.50 06/01~2019 11.547.50 11,547.50 12/01/2019 220,000 5.050% 11347.50 231,547.50 243,095.00 06/01/2020 5,992.50 5,992.50 1~01~020 235,000 5.100% 5,992.50 240,992.50 246.985.00 9,160,000 4,142,355.02 13,302,355.02 13,302,355.02 CITY OF BREMERTON Non-voted debt (Limited Tax General Obligation) Limited Tax General Obligation Bonds C_rTY OF BREMS~RTON BOND DEBT SERVICE City of Bmmenon Limited Tax General Obligation Bonds. 2001 Doled Date 03/0112{201 Delivery Date 03/1212001 Pedod Ending Pnneipal Coupon Inlerest Debt Service 06101/2003 06/01/2004 06/01/2005 06/01/2006 1210112006 06/01/2007 06/01/2008 12101/2008 06/01/2009 I2/01/2009 06/01/2011 06/01/2012 06/0t/2013 06/01/2014 12/01/2014 12/01/2015 06/01/2016 0001/2018 06/01/2019 12/01/2019 06/01/2020 I2/01/2020 67,45750 67,457.50 110,000 4,125% 67,457.50 177.457.50 244.915.00 65.188175 65,188.75 115.000 4.125% 65,18g.75 I g0,198.75 245.377.50 62.gl 6.g8 62,816.88 120.000 4.125% 62.gl 6.gg 182.g16.88 245,633.76 60,341.88 60.341.88 i25,000 4,125% 60.341.88 185,341 8}1 245,683.76 57,763.75 57~763.75 130.000 4.125% 57,763.75 187,763.75 245,527.50 55.082.50 55,082.50 135.000 4.200% 55,08250 190.082.50 245,165.00 52~4730 52.247.50 140.000 4.300% 52.247.50 192,247.50 244,495.00 49,237.50 49.237.50 145.000 440~% 49~37.50 194.237.50 243,475,00 46.047.50 46,047.50 155,000 4400% 46.047.50 201,047.50 247.095.00 42,637.50 42.637.50 160,000 4550% 42.63730 202.637.50 245.275.00 38.99730 38,997.50 170,000 4.650% 3g ,997.50 20g,997.50 247,995.00 35.045.00 35,045.00 175,000 4.750% 35,045.00 210,045.00 245,090.00 30,88g.75 30,888.75 185,000 4.g 50% 30,888J5 215.888,75 246.777.50 26,402.50 26.402.50 190,000 4.900% 26,402.50 216,402.50 242.g05.00 21,747.50 21,747.50 200,000 4.950% 21,747.50 221,747.50 243,495.00 16.707.50 16.797.50 210,000 51)00% 16,797.50 226.797.50 243,595.00 11,547.50 11,547.50 220,000 5.050% I 1,547.50 231.547.50 243,095.00 5,99230 5.992.50 235.000 5.100% 5,992.50 240,992.50 246,985.00 2,920,000 1,492,480.02 4,412,480.02 4,412,480.02 CYTT OF BREMERTON Penod En0ing BOND DEBT SERVICE 06/01/2003 99,87835 99,878.75 1210112003 175,000 4.300% 99,1{7 825 274,871{ 75 374,757.50 06101/2004 96,116.25 96,116.25 1210112004 185,000 4.400% 96,11 6.25 281,116.25 377,232.50 06/01/2005 92,04 625 92,046.25 12/01/2005 195,000 4,500% 92,04625 287,046.25 379.092.50 0610112006 87.658.75 87,658.75 12/01/2006 200,000 4.600% 87,65 8.75 287.658.75 375,317.50 0610112~07 83,05 8.75 83,058,75 1210112007 210,000 4.700% 83,058.75 293,058.75 376,117.50 06/01/2008 78,123.75 78,123.75 12/01/2008 220,000 4.750% 78,12375 298.123.75 376,247.50 06/01/2009 72,89825 72,898.75 12/01/2009 230,000 4.80002'0 72,89875 302.898.75 375,797.50 06/01/2010 67,37 8.75 67,378,75 12/01/2010 240,000 4.850% 67.378/75 307.378.75 374,757.50 1210112011 255,000 4.900% 61.550.75 316,558.75 378,117.50 06/01/2012 55,31 1.25 55,311.25 12/01/2012 265,000 4.950% 55 211.25 320,311,25 375.622.50 06/01/2013 48.75230 48,752.50 12/01/2013 280,000 5.000% 48,752.50 328,752.50 377.505.00 06/01/2014 41.752.50 41,752.50 I2/0112014 300,000 5.050% 41 35 2.50 341,752.50 383,505.00 06/01/2015 34,17730 34,177.50 12/01/2015 300,000 5.100% 34,I77.50 334, I77.50 368,355.00 06/0112016 26,527,50 26,527.50 12/0112016 325,000 5.150% 26,52730 35L527.50 378,055.00 06/01/2017 18.158.75 18,158.75 12/01/2017 340,000 5200% 18,158.75 358,158.75 376,3[7.50 06/01/2018 9,318.75 9,318.75 12/01/2018 355,000 5.250% 9,318.75 364,318.75 373,637.50 4,075,000 1,945 A35.00 6,020.435.00 6,020,435.00 CIT'FOFBKElvLERTON Period Ending 06/01/2003 06/01/2004 06/01/2005 06/01/2006 06101/2007 06/01/2008 12/01/2008 06/01/2009 06/01/201 ] BOND DEBT SERVICE Annual Debt Service 58,035.00 58,035.00 170,000 4.900% 58,035.00 228,035,00 286,070.00 53.870.00 53,870.00 180,000 4.900% 53,870.00 233,870.00 287,740.00 49,460,00 49,460.00 185,000 5.150% 49.460.00 234,460.00 283,920.00 44,696.25 44,696.25 195,000 5.300% 44,696.25 239,696.25 284,392.50 39,52825 39,528.75 205,000 5.350% 39,528.75 244.528.75 284,057.50 34,045.00 34,045,00 220,000 5.450% 34.045.00 254,045.00 288,090.00 28,050.00 28,050.00 230,000 5.450% 28,050.00 258,050.00 286.100.00 21,782.50 21,782.50 245,000 5.550% 21,782.50 266,782.50 288,565.00 14,983/75 14,983.75 260,000 5.550% 14,983.75 274,983.75 289,967.50 7.768.75 7,768,75 275,000 5.650% 7,768/75 282,768.75 290.537.50 2,165,000 704,440.00 2,869,440.00 2,869,440.00 CITY' OF BREMERTON · Revenue Bonds (Utility Revenue) Water & Sewer Revenue Bonds Om:standing D~bt 2O03 C27T OF BREMERTON BOND DEBT SERVICE C~ty of Bmmenon, Washington Total Outstanding Debt Includes: 92B, 94 period Ending prhxeipal Coupon Interest Debt Debt Service Service 03/0112003 ** 325310.00 2,473,g 10.00 2,1102.620 09/01/2003 2.145,000 266.860.00 266.860.00 E9101/2004 2.270.000 5.300% 266360.00 2,536,860.00 2.803,720 206,5'05.00 206,705.00 03/01/2005 2.59fi.705.00 2,803.410 0910112005 2.390.000 5.400% 206,7 05,00 142.15'5.00 142.175.00 03/01/2006 '~ 657,175.00 2,799,350 0910112006 2.515.000 5.500% 142,175,00 73,0 12.50 73,012.50 0310112007 2,728,012.50 2,801.025 0910112007 2,655,000 5.500% 73,0 1250 11,975,000 2.035,125.00 14,010.125.00 14,010,125 CFFY OF BREMERTON Period Ending BOND DEBT SERVICE City of Bremer~on Water & Sewer Revenue Bonds, Dated Date 03t01/1994 Delivery Date 03/31/1994 principal Coupon Interest Debt Se rviee Annual Debt 03/01/2003 252,460.00 292,460.00 09/01/2003 600,000 5.200% 282,460,00 882,460.00 1,164,920 03/01/2004 266~60.00 266,860.00 09/01/2004 2,270,000 5.300% 266,860.00 2,536,860.00 2,803,720 03/0112005 206,705.00 206,705.00 09101/2005 2,390,000 5400% 206,705.00 2,596.705.00 2,803,410 03/01/2006 142,175.00 142,175.00 09/01/2006 2,515,000 5.500% 142,175.00 2.657,175.00 2,799,350 03/0112007 73.012.50 73,012.50 09/01/2007 2,655,000 5,500% 73,012.50 2,728,012.50 2,801,025 10,430,000 1,942,425.00 12,372,425.00 12,372,425 PRELIMINARY CONFERENCE CENTER BOND FUND (FUND 201) Fiscal Year 2003 REVENUES Bond Proceeds Interest Eamings Total Revenues $11,500,000 ~130,000 $11,630,000 EXPENDITURES interest on LFF Extemal Debt Operating Transfer Out (Fund 301) Ending Fund Balance Total Expenditures 415,000 11,000,000 215,000 11,630,000 PRELIMINARY CONFERENCE CENTER CAPITAL BUDGET (FUND 301) Fiscal Year 2003 REVENUES Operating Transfer In (Fund 201) Public Facilities District Kitsap Transit Pad Sale Arterial Street Hotel Motel/Discretionary Reserve Intarest Earnings Total Revenues $11,000,000 $6,9OO,OOO $4,0OO,OOO $250,000 $103,462 $183,317 $22,436,779 EXPENDITURES Administration: Project Administration Financial administration Professional Services: Architectual Services (Conference Center, Parking Garage) (8.55%) Consultant studies 160,000 50,000 1,946,270 85,000 Demolition and Relocation Dump Fees Environmental Port of Bremerton Bed Purchase Street Improvements Plaza & offsite landscaping of optional components Parking Garage Construction Conference Center Construction Plaza Construction Ending Fund Balance Total Expenditures 129,000 80,000 130,518 90,000 103,462 183,317 10,671,952 5,547,389 2,740,266 519,805 22,436,779 CITY OF BREM~RTON BOND DEBT SERVICE City of B~emerton Water & Sewer I~veaue Bonds, 1992B Dasd Date 10/0 1/1992 Debvery Date 01/0511993 Annual Period Debt Debt Ending Principal Coupon interest Service Service 03/01 ~003 46,350 46.350 09/01~003 1.545,000 6.000% 46.350 1 ~91,350 1,637,700 1 345,000 92300 1,637,700 1,637,700 AGENDA BILL BREMERTON CITY COUNCIL SUBJECT: ORDINANCE # ~, VACATING FOR AGENDA OF: January 29, 2003 A PORTION OF SECOND STREET, EAST ORIGINATING DEPT: PW&U Engineering Division OF WASHINGTON AVENUE. ORIGINATOR Michael C Mecham, C~y Enginee. v?~' DATE SUBMITTED: Januap/16, 2003 2~ on back it, . ' < <...> 3. EXHIBITS D'~~ A. Ordinance # City Attorney .-,~=~m__z:~ B. Site Map. Director, Community Developmem Council Budget & Finance Committee'" Operations Committee ~ ~'~-- ENDORS~'I~lqT~________m INFORMATION APPROVED BY COUNCIL PRESIDENT FOR SUBMITT) MAYOI~,,..~.q. ,~- z--" COUNCIL PRESIDENT /'f~e.~.~ ~ 4. SUMMARY STATEMENT AND REQUIREMENT FOR COUNCIL ACTION: The City has initiated the vacation of a portion of Second Street east of Washington Avenue. The City Council conducted a public hearing on December 11, 2002, in accordance with state law and the Bremerton Municipal Code. The vacated area will be incorporated into the abutting City owned property to provide a site compatible with usage for downtown redevelopmem. This vacation is sought to enable the City to implemem a plan, adopted by Ordinance 4828, 4829 and 4830, that provide comparable or improved public access to the same shoreline area to which the streets or alleys sought to be vacated abut, had the properties included in the plan not been vacated. Functionality of Second Street as a transportation facility will not be significantly affected. Access to the waterfi'ont will not be impeded with this vacation. This is a Class II right-of-way and compensation is not required in accordance with BMC 11.20.080. The City Council is being requested to approve, disapprove, or modify this vacation of a portion of Second Street, east of Washington Avenue. 8. RECOMMENDATION: A. Move to approve the attached Ordinance, on first reading, vacating a portion of Second Street east of Washington Avenue. Move to pass Ordinance # Avenue. , on second reading, vacating a portion of Second Street and Washington 9. RESPONSIBLE OFFICIAL: ENFORCEMENT OFFICIAL: EXPIRATION DATE: REVIEW DATE: City Engineer N/A PULLED COUNCIL DIRECTIVE TABLED APPROVED DISAPPROVED ~E~. DATE: ll. AGENDA BILL NO: (5}3 - 73- 2. CLEARANCE COMMENTS: 5. IMPACT ON NON-PASSAGE: The right-of-my will not be vacated. This will result in the inability to constmct the hotel and conference center as presently planned requiring a modification of the plans for the hotel and conference center. 6. IMPACT ON STAFFING~ BUDGETS~ FACILITIES~ EQUIPMENT OR OTHER RESOURCES: Staffing: No impact. Budget: No impact Facilities/Equipment: No impact 7. RESEARCH SOURCES BMC 11.20 Vacation of Public Rights-of-Way RCW 35. 79 Streets ab\Vacations\City 2nd Street\Agenda Bill - Ordinance 73 ORDINANCE NO. AN ORDINANCE of the City Council of the City of Bremerton, Washington, relating to the vacation of streets, vacating a portion of 2nd Street East of Washington Avenue in the City of Bremerton. WHEREAS, the City has initiated the vacation of a portion of 2nd Street East of Washington Avenue; and WHEREAS, the City passed resolution number 2879 declaring its intention to vacate a portion of 2nd Street, which resolution also set a hearing to take public comment or consider written objections to the vacation; and WHEREAS, fewer than fifty percem of the property owners abutting said right- of-way filed written objections to this action prior to the time set for public hearing herein; and WHEREAS, a public hearing was held with proper notice on December 11, 2002, in the City Council Chambers of the Bremerton City Hall to take public comment or consider written objections to the vacation; and WHEREAS, the City Council finds that this vacation is sought to enable the City to implement a plan, adopted by Ordinance Nos. 4828, 4829 and 4830, that provides comparable or improved public access to the same shoreline area to which the streets or alleys sought to be vacated abut, had the properties included in the plan not been vacated; and WHEREAS, the portion of the street being vacated is abutted on each side by City owned property or by City Right-of-Way, which will result in the City retaining ownership oftha vacated property; and WHEREAS, the City Council has determined that it is in the best interest of the public to proceed with the vacation; and WHEREAS, the City Council has directed the preparation of an ordinance vacating the portion of said streets; NOW, THEREFORE, THE CITY COUNCIL OF THE CITY OF BREMERTON, WASHINGTON, DOES HEREBY ORDAIN AS FOLLOWS: SECTION 1. The foregoing recitals are incorporated as if fully set forth herein. 1 Street Vacation - 2nd Street SECTION 2. That portion of 2nd Street, lying east of Washington Avenue in the City of Bremerton, as described in Exhibit A, which is attached and incorporated herein by this reference, is hereby vacated to the abutting property owners. SECTION 3. Reservation of Easements. a. An easement is reserved for the City of Bremerton, Public Works and Utilities Department for operation, maintenance and repair of water lines and streets over, under and upon the entire area vacated pursuant to this ordinance. b. An easement is reserved for Cascade Natural Gas, Quest Communications and Puget Sound Energy for operation, maintenance and repair of gas, telecommunication and power lines over, under and upon the entire area vacated pursuant to this ordinance. SECTION4. No vested rights shall be affected by the provisions of this ordinance. SECTIONS. Severabilitv. If any one or more section, subsections, or semences of this Ordinance are held to be unconstitutional or invalid, such decision shall not affect the validity of the remaining portion of this ordinance and the same shall remain in full force and effect. SECTION 6. Effective Date. This ordinance shall take effect and be in force ten (10) days fi.om and at~er its passage, approval and publication as provided by law. APPROVED by the City Council the PASSED by the City Council the day of ,2003. day of ,2003. CAROL ARENDS, Council Presidem Approved this day of ., 2003. CARY BOZEMAN, Mayor 2 Street Vacation - 2~d Street ATTEST: APPROVED AS TO FORM: KATHLEEN MCCLUSKEY, City Clerk PUBLISHED the day of EFFECTIVE the day of ORDINANCE NO. R:\LEGAL\Ordinances~2nd Street vacation, doc ROGER A. LUBOVICH, City Attorney ,2003. ,2003. Street Vacation - 2"d Street ? ? cS) 77 ? ? BREMERTON CITY COUNCIL 1. SUBJECT: DECLARATION OF EMERGENCY- FOR AGENDA OF: January 30, 2003 NAVAL AVENUE SEWER FORCE MAIN ORIGINATING DEPT: Public Works & Utilities ~O\~C~0~\ ~ c~ ~L~ ~ ~' ORIGINATOR: W. Eugene Sampley, Direct~ffr~ DATE SUBMITTED: January 29, 2003 2. CLEARANCES: (Comment on back if necessary) 3. EXHIBITS: ~--~"-~~~~ -<~-. "~ 1. Resolution No. Cit~A/torfieyy~/' / Financ~Director/ .Cou lg al & /Budget Co ~mmittee Council Operations Cdrffmittee ENDORSEMENT [~RMATION [ ] APPROVED BY COUNC1L PRESIDENT FOR SUBMI~ co c ,, S EN 4. SUMMARY STATEMENT AND REQUIREMENT FOR COUNCIL ACTION: Approximately 2,300 feet of the Naval Avenue Sewer Force Main is experiencing repeated and continual spot- failures of unknown cause. The number and increasing frequency of spot-failures is indicative of a degenerating pipe condition that could result in a total pipe failure affecting public health and safety. Immediate action is necessary to cause the permanent repair or replacement of the force main. RCW 39.04.280(1)(c) specifically authorizes a municipality to waive competitive bidding requirements for purchases in the event of an emergency, and BMC 2.76.600(a)(3) provides the City is not required to seek competitive bids when the City contracts for materials, goods and equipment in order to effectively respond to emergencies affecting public health and safety. It is recommended that the City Council adopt Resolution No..~4.~'declaring an emergency condition exists and authorizing the Mayor to cause the repair or replacement of the Naval Avenue Sewer Force Main per RCW 39.04.280(1)(c) and BMC 2.76.600(a)(3). 5. RECOMMENDATION: l.) The City Council approve Resolution No~,8 ~'~'declaring an emergency condition exists and authorizing the Mayor to cause the repair or replacement of the Naval Avenue Sewer Force Main. 9. RESPONSIBLE OFFICIAL: I ENFORCEMENT OFFICIAL EXPIRATION DATE: REVIEW DATE: 10. NOTICE OF ACTION PULLED [ ] TABLED [ ] APPROVED [ ] DISAPPROVED [ ] AME~ .... t ~ COUNCIL DIRECTIVE: 2. CLEARANCE COMMENTS: 4. SUMMARY STATEMENT (Continued) IMPACT ON NON-PASSAGE: The City runs the risk of force main failure resulting in the loss of service and property and environmental damage. 6. IMPACT ON STAFFING, BUDGETS, FACILITIES, EQUIPMENT AND OTHER RESOURCES: Staffing: None Budget: If replacement is required, $200,000 is budgeted for sewer main replacement. Discussions have been held with Public Works Trust Fund staff and the City will apply for an emergency loan for this repair/replacement. Facilities/Equipment: No impact. 7. RESEARCH SOURCES: None. RESOLUTION NO.; g~ 5 A RESOLUTION of the City Council of the City of Bremerton, Washington declaring an emergency condition exists and authorizing the Mayor to take necessary steps to make emergency repairs to approximately 2,300 feet of the Naval Avenue Sewer Force Main as provided in RCW 39.04.280(1)(c) and BMC 2.76.600(a)(3). WHEREAS, the Naval Avenue Sewer Force Main is a critical and necessary element of the City's wastewater conveyance system; and WHEREAS, approximately 2,300 feet of the Naval Avenue Sewer Force Main is experiencing repeated and continual spot-failures of unknown cause with increasing frequency requiring immediate isolated repairs within this reach of force main; and WHEREAS, the number and increasing frequency of spot-failures is indicative of a degenerating pipe condition that could result in a total pipe failure; and WHEREAS, total failure of the Naval Avenue Sewer Force Main is likely and will affect public health and safety without immediate action to cause the permanent repair or replacement of the force main; and WHEREAS, RCW 39.04.280(1)(c) specifically authorizes a municipality to waive competitive bidding requirements for purchases in the event of an emergency; and WHEREAS, BMC 2.76.600(a)(3) provides the City is not required to seek competitive bids when the City contracts for materials, goods and equipment in order to effectively respond to emergencies affecting public health and safety; NOW THEREFORE THE CITY COUNCIL OF THE CITY OF BREMERTON, WASHINGTON, DOES HEREBY RESOLVE AS FOLLOWS: SECTION 1. That an emergency condition exists due to unforeseen circumstances beyond the control of the City that presents a real, immediate threat to the proper performance of the essential function of the City's sewer system and will likely result in material loss or damage to property and the environment. SECTION2. That the Mayor is hereby authorized to cause the immediate, permanent repair or replacement of approximately 2,300 feet of the Naval Avenue Sewer Force Main in accordance with the provisions of RCW 39.04.280(1 )(c) and BMC 2.76.600(a)(3). Naval Avenue Force Main Emergency Resolu~on SECTION3. Competitive bidding requirements are hereby waived and are not required for securing contracts for materials, goods, equipment and services necessary to respond to the emergency referenced in this resolution. SECTION4. The Mayor is hereby authorized to award all necessary contracts on behalf of the City in order to effectively respond to this declared emergency. SECTIONS. Severabdi_tv. If any one or more sections, subsections, or sentences of this Resolution are held to be unconstitutional or invalid, such decision shall not affect the validity of the remaining portion of this Resolution and the same shall remain in full force and effect. SECTION 6. Effective Date. This Resolution shall take effect and be in force immediately upon its passage. PASSED by the City Council of the City of Bremerton, Washington this 29th day of January, 2003. APPROVED AS TO FORM: R~GER A. LUBOVIC~--)tsf Attorney CAROL ARENDS, Council President ATTEST: KATHLEEN MCCLUSKEY, City Clerk R:~LEG AL\ResolutionsXNaval Ave Force Main Emergoncy Resolution2.doe Naval Avenue Force Main Emergency Resolution The Statute that enables the City to waive bid laws is RCW 39.04.280(1)(c). You should also reference BMC 2.76.600(a)(3), which reads: The City is not required to seek competitive bids when: The City contracts for materials, goods and equipment in order to effectively respond to emergencies affecting public health and safety. The term "emergency" is defined by statute to mean unforeseen circumstances beyond the control of the municipality that either: (a) present a real, immediate threat to the proper performance of essential functions; or (b) will likely result in material loss or damage to property, bodily injury, or loss of life, if immediate action is not taken. RCW 39.04.280(3) Certain emergency situations justify the letting of a contract without following the bid requirements: Exceptions are sometimes made to the rule that when so required by statute or charter, municipal contracts must be let under competitive bidding. In case of an emergency, where it is essential to the health, safety, or welfare of the people that immediate action be taken, the requirement may be dispensed with. RCW 39.04.280(1)(c) specifically authorizes a municipality to waive competitive bidding requirements for purchases "in the event of an emergency." In such a situation, the person designated by the governing body to act in the event of an emergency may declare that an emergency situation exists, waive competitive bidding requirements, and award all necessary contracts on behalf of the city to address the emergency. If a contract is awarded without competitive bidding due to an emergency, written findings of the existence of an emergency must be made by the governing body or its designee and entered into its record no later than two weeks following the contract's award. Several first class city charters also provide that the city may forego bidding procedures in the event an emergency exists. MRSC also recommends checking with the State Auditor's Office before declaring the emergency is also recommended. If the auditor's office agrees that a particular factual constitutes an emergency situation, that does not guarantee that unhappy contractors will not sue, saying there was no emergency, but it should prevent a possible negative audit finding. Naval Avenue Force Main Emergency Resolution