Loading...
HomeMy WebLinkAbout12/22/04 AGENDA F LE CITY COUNCIL 345 6th Street, Suite 600, Bremerton, WA 98337 (~ (360) 473-5280 o~ Fax (360) 473-5251 DECEMBER 22, 2004 CITY COUNCIL MEETING AGENDA 1. PRE-COUNCIL STUDY SESSION: 5:00 - 5:30 P.M. in COUNCIL CONFERENCE ROOM 603 A. General Council Business 2. CALL TO ORDER: 5:30 P.M. in COUNCIL CHAMBERS LOCATED ON FIRST FLOOR A. Pledge of Allegiance B. Invocation 3. PUBLIC SERVICE ANNOUNCEMENTS 4. CONSENT AGENDA A. Claims & Check Register (#AB04-263) B. Minutes of Meeting - December 1,2004 (#AB04-264) 5. NEW BUSINESS - There are no NEW BUSINESS items scheduled... 6. PUBLIC HEARINGS - ORDINANCES & RESOLUTIONS A. Ordinance No. 4922 [Second Reading], annexing approx. 6.14 acres, generally bounded on the east side of Pine Road just South of NE Roswell Drive ("Racus Annexation") to the City of Bremerton (#AB04-259) B. Ordinance No. 4924 [Second Reading], amending Chapter 3.48 of the Bremerton Municipal Code, updating the "Business & Occupation Tax" provisions consistent with EHB2030 (#AB04-260) C. Ordinance No. 4925 [Second Reading] amending FY 2004 Budget (#AB04-261) D. Ordinance [First Reading] authorizing Kitsap County Consolidated Housing Authority (KCCHA)to exercise powers of a Public Development Authority (#AB04-265) No. 2949 to surplus and approve sale of Public Utility Property (38 acres formerly known E. Resolution as the Tracyton Watemhed) to BEALKO, INC. (#AB04-266) 7. ADJOURNMENT OF CITY COUNCIL BUSINESS MEETING CITY COUNCIL STUDY SESSION Immediately following the City Council Meeting, the Council Members will reconvene in COUNCIL CONFERENCE ROOM 603 for a LEGISLATIVE REVIEW MEETING to hear presentations on the following proposed items. Please note that no action will be taken, and the content of these items are subject to change... 1. Professional Service Agreement with the BREMERTON SCHOOL DISTRICT for funding a full-time School Resource Officer - Lt. Jim Burchett, Bremerton Police Department 2. BREMERTON HOUSING AUTHORITY (BHA) 2004 Contract Addendum; and 2005 Contract for Supplemental Police Services with the City of Bremerton Police Department - Lt. Greg Rawlins, Bremerton Police Department 3. Purchase of Property Insurance from AFFILIATED FM INSURANCE COMPANY for 2005 - Peggy Lesser, Risk Manager B Americans with Disabilities Act (ADA) accommodations provided upon request. Those requiring special accommodations should contact the City Clerk's Office at (360) 473-5323 by noon on the Monday preceding the Council meeting. CITY COUNCIL MEETING SPEAKERS LIST PLEASE NOTE THAT ALL REQUESTS FOR INFORMATION FROM THE CITY OF BREMERTON MUST BE SUBMI'I"I'ED IN WRITING. THANK YOU. PLEASE PRINT YOUR NAME BELOW IF YOU PLAN TO SPEAK DURING THE COUNGII/MEETING TONIGHT AGENDA BILL - - CiTT OF BP, E~MERTON C!TYCOUNC!L q A SUBJI?,CT: A_ppl'oval o_f Claims and Checlcs Committee Meeting Date; Register COL¢ICIL MEETING Date: _/~?~,,.~..~/~ Department: Financial Sel~)ices Presenter: Cathy Jolmson Phone: 473-5296 SUMMARY: Consent agenda item. Approval of payroll, checks and electronic fund transfers. ATTACHMENTS: FISCAL IMPACTS (Include Budgeted Amount):. APPROVALS: DEPARTMENT DIRECTOR: CITY ATTORNEY: FINANCE DIRECTOR: MAYOR: FISCAL/BUDGET: OPERATIONS: CONSENT AGENDA cousc L S ENT: RECOMMENDED MOTION: Move to Approve:0 t'/' 1) Check #'s ,x9~/'7¢ throughOUt_and EFT's ~ b'~3 through~,bO O in the amount ors /~) O6,/') ~ 2) Regular Payroll for the pay period endim, ~/ ~,'~ ,',~/- - ~ ~-~, c,, /n the amount of $f_~ ~,~_~ 3) Retiree Payroll for the pay period ending in the amoum ors COUNCIL ACTION: _~Approve [] Den>, [] Table [] Continue [] No Action DATE SUBMITTED: BILL # 0/4' - AGENDA BILL CITY OF BREMERTON 4 CITY COUNCIL SUBJECT: Minutes of Meeting - la/{ [o'~ Committee Meeting Date: N/A COUNCIL MEETING Date: Department: City Council Presenter: Daren Nygren, Council President Phone: (360) 473-5280 SUMMARY: Attached are the minutes for the Council Meeting held ATTACHMENTS: Minutes for l o-/~/'~ FISCAL IMPACTS (Include Budgeted Amount): 0 APPROVALS: DEPARTMENT DIRECTOR: CITY ATTORNEY: FINANCE DIRECTOR: MAYOR: FISCAL/BUDGET: t CONSENT AGENDA [] OPERATIONS: [ COUNCIL PRESIDENT: ~ ~ RECOMMENDED MOTION: Move to pass the Consent Agenda as presented. COI,,~CIL ACTION: [-~ Annrove {--] Denv ~ Table [] Continue ~ No Action DIGITAL RECORDING CITY COUNCIL MEETING MINUTES Wednesday, December 1, 2004 The weekly meeting of the City Council of the City of Bremerton was called to order in the City Council Chambers, of the NORM DICKS GOVERNMENT CENTER 345 6th Street, Bremerton, Washington, Wednesday, December 1, 2004, at 5:30 P.M., with Council President Daren Nygren presiding. Council members present were Mike Short, Will Maupin, Carol Arends, Dianne Robinson, Mike Shepherd, Wendy Priest, Cecil McConnell, and Brad Gehring. Also present were City Attorney Roger Lubovich; City Clerk Paula Johnston; and Legislative Assistant Lod Smith. The Pledge of Allegiance was led by Vice President McConnell, followed by the invocation provided by Council Member Carol Arends. President Nyqren made the following announcements: 1. A Pre-Council session was held in Council Conference Room 603 from 5:00 to 5:30 PM; and 2. Item 7F will be heard immediately following Item 7A under PUBLIC HEARINGS on the agenda. MAYOR'S REPORT Mayor Bozeman... · Was pleased to accept an award from the 3rd Annual Governor's 2004 Economic Development forum; · Honored the memory of Ike Parker, and offered his condolences to the Parker family; and · Read a proclamation to proclaim December 1, 2004 as World Aids Day. A moment of silence was held in honor of Ike Parker... PUBLIC SERVICE ANNOUNCEMENTS - There were no announcements this meeting. CONSENT AGENDA A. Check numbers 295703 through 295846; EFT-6567 through EFT-6568; and EFT-6571 through EFTo6573 in the amount of $327,871.40; and Retiree Payroll in the amount of $70,906.37 for the period ending November 30, 2004. (#AB04-242) B. Minutes of Meeting - November 3, 2004 (#AB04-243) C. Minutes of Meeting - November 10, 2004 (#AB04-244) D. Appointment of John Lyall to the Bremerton Housing Authority Board of Directors (#AB04-245) M/S/C/U (Priest/Robinson) Move to approve the Consent Agenda as presented. 7A - ORDINANCE NO. 4917 [SECOND READING] ADOPTING A NEW BREMERTON COMPREHENSIVE PLAN AND RESCINDING EXISTING PLANS (#AB04-231): The first reading of this ordinance was heard on November 3 and 17, 2004. Chris Huqo, Director of Community Development, summarized the historical significance of the action before the Council this evening. Paul Roqerson, Planning Manager, noted for the record and commented on four letters that were submitted to address the proposed Comprehensive Plan from (1) Dara O'Byrne, Urban Policy Advocate from "1000 Friends of Washington"; (2) Cindy Baker, Interim Director, Kitsap County Department of Community Development; (3) Kitsap County Board of Commissioners; and (4) William Edwards, Development Engineering, Kitsap County Department of Community Development. Jason Rice, from the Kitsap County Department of Community Development, thanked the City for allowing them an opportunity to provide comment and to participate in the process. Mike Shepherd provided his comments on bike lanes and commercial zoning. City Council Reg. Mtg. Minutes Wednesday, December 1, 2004 Page 2 of 4 Mr. Short, Mrs. Arends and Mr. Maupin provided comments regarding the use of the term "Smart Growth". Mr. Short also pointed out a typo on page 35 of the Staff Report, which was noted for the record, and will be corrected. Ms, Priest supported this document, and thanked the staff of the Department Community Development Department for all their efforts. Mr. Gehrin.q expressed a concern brought forward by a group of his constituents regarding zoning limitations, particularly the number of lots per acre; and potential for increased traffic. Ms. Robinson questioned how the Plan would affect Anderson Cove. Mr. Huqo stated the Plan would provide support for all neighborhoods. A 5-minute recess was taken... Mr. Lubo¥ich proposed new language for bike trails; clarified the language in the Appendix listing text revisions as suggested by WSDOT; and questioned whether language would be changed from "Smart Growth" to "Intelligent Growth". M/SIC (Arends/Maupin) Move to pass Ordinance No. 4917 on second reading, as amended. Voted in favor of Motion: Priest, Shepherd, Robinson, Arends, Maupin, Short, Nygren Voted opposed to Motion: McConnell, Gehring Motion carried: 7-Yes; 2-No Mr. Hugo acknowledged Department of Community Development staff members Paul Roqerson, Adrianne Ralph, and Matt KeouRh; and members of the City Council and Planninq Commission. 7F - RESOLUTION NO. 2947 PRESENTING COMPLIANCE SCHEDULE FOR ADOPTION OF DEVELOPMENT REGULATIONS PER GROWTH MANAGEMENT ACT (#AB04-248): Chris HuRo, Community Development Director pointed out that the proposed resolution lays-out a schedule for adoption of development regulations necessary to implement the 2003-2004 comprehensive plan (scheduled for adoption this date). Adoption of such a resolution is recommended by the State Department of Community, Trade and Economic Development (DCTED) as a means of assuring interested parties that the CitY is working actively to meet deadlines established by the Growth Management Act. There were no comments from the public. M/S/C (PriestJArends) Move to pass Resolution No. 2947 presenting compliance schedule for adoption of development regulations per the Growth Management Act. Voted in favor of Motion: Priest, Shepherd, Robinson, Arends, Maupin, Short, McConnell, Nygren Voted opposed to Motion: Gehring Motion carried: 8-Yes; 1-No 7B - ORDINANCE NO. 4918 ]SECOND READING] AMENDING CHAPTER 3.50 OF THE BREMERTON MUNICIPAL CODE~ DECREASING THE CABLE UTILITY TAX FROM 8.5% TO 7% FOR 2005 (#AB04-240): The first reading of this ordinance was heard on November 23, 2004. There were no comments from the public. M/S/C/U (McConnell/Robinson) Move to pass Ordinance No. 4918 on second reading. City Council Reg. Mtg. Minutes Wednesday, December 1, 2004 Page 3 of 4 7C - ORDINANCE NO. 4919 [SECOND READING], AMENDING CHAPTER 3.01 OF THE BREMERTON MUNICIPAL CODE~ UPDATING RATES AND FEES FOR 2005 (#AB04-241): The first reading of this ordinance was heard on November 23, 2004. There were no comments from the public. M/S/C/U (McConnell/Arends) Move to pass Ordinance No. 4919 on second reading, amending Rate Tables E and F of Chapter 3.01 of the Bremerton Municipal Code to update the rates & fees for 2005. 7D - ORDINANCE [FIRST READING] AUTHORIZING THE EXTENSION OF AN AGREEMENT WITH BANK OF AMERICA TO SECURE AN $800,000 LINE-OF-CREDIT FOR THE KITSAP CONFERENCE CENTER AT BREME~t~ON HARBORSlDE (#AB04-246): Michael Wilson, Financial Services Director, explained that the Conference Center needs to extend and increase the amount of interim financing to pay for the pre-opening operating costs and initial capital expenses and to fund operating deficits for the new KITSAP CONFERENCE CENTER AT BREMERTON HARBORSIDE. The City's bank, BANK OF AMERICA, has submitted a proposal for the extension of an $800,000 line of credit for the conference center. This line of credit will be a variable rate issue (based on prime rate minus 79 basis points) through issuance of general obligation bonds. There were no comments from the public. M/S/C/U (Arends/McConnell) Move to approve ordinance on first reading, authorizing the Mayor to execute an agreement with the BANK OF AMERICA for securing an $800,000 line of credit to fund the pre-opening and initial operating expenses for the KITSAP CONFERENCE CENTER AT BREMERTON HARBORSIDE. 7E - ORDINANCE [FIRST READING1 ADOPTING FY 2005 CITY OF BREMERTON BUDGET (#AB04-247): Michael Wilson, Financial Services Director stated that a preliminary annual budget for fiscal year 2005 has been prepared and filed in the Office of City Clerk for the City of Bremerton; public hearings have been held for the purpose of fixing the final City Budget; and the City Council has deliberated and made the adjustments and changes deemed necessary and proper. Several changes which developed as a result of numerous Budget Sessions, were summarized, which resulted in the revised Budget currently before the Council. Ms. Priest provided a report on the distribution of Lodging Tax Funds for 2005. President N_~ thanked Ms. Priest for her efforts in chairing this Committee, and noted that the Council has asked the Committee to meet quarterly in 2005. Mr. Maupin summarized the work of the Council on the budget this year, and provided a brief explanation for the decisions that were made to balance the budget. President Nyqren thanked Mr. Maupin for and Mr. Wilson for their for her efforts in chairing this Committee, and noted that the Sylvia Klatman, Bremerton Chamber of Commerce, appreciated the amount of funding received. Mr. Shepherd questioned whether it was a good business decision by the City to "give away" 80 parking spaces in perpetuity; asked to receive a copy of the Job Description for the Traffic Safety Coordinator; suggested that the City combine the marketing funds in the Mayor's with the Lodging Tax funding allocated to the Bremerton Chamber of Commerce and Kitsap Visitors & Convention Bureau to maximize marketing for the City. M/S/C (Arends/McConnell) Move to approve the ordinance on first reading, relating to the adoption of the City of Bremerton 2005 Annual Budget, as amended. City Council Reg. Mtg. Minutes Wednesday, December 1, 2004 Page 4 of 4 Voted in favor of Motion: Maupin, Short, Gehdng, McConnell, Priest, Robinson, Arends, Nygren Voted opposed to Motion: Shepherd Motion carried: 8-Yes; 1-No Amendment to Motion (McConnell/Shepherd) Move to promote employees currently in Band 8 to Band 9 in the "Professional, Confidential, and Fiduciary Salary Schedule". Voted in favor of Motion: Shod, Gehring, McConnell, Priest, Shepherd, Robinson, and Arends Voted opposed to Motion: Maupin, Nygren Motion carried: 7-Yes; 2-No Amendment to Motion (McConnell) Move to create a position of "Assistant to the Mayor" at a pay band to be determined. Amendment died for lack ora Second Amendment to Motion (McConnell) Move to make the Traffic Safety Coordinator position in the Police Department an FTE. Amendment was withdrawn because this item is already in the budget. Amendment to Motion (Shepherd) Move to relocate $50,000 from "Marketing" in the Executive Budget to the City Council Budget. Amendment died for lack of a Second PUBLIC RECOGNITION - There were no comments tonight. COUNCIL MEMBER REPORTS Mike Shepherd commented on his attendance at the Puget Sound Regional Coordinating Council's Economic Summit. Wend¥ Priest invited citizens to attend the next District 4 & 5 Community Meeting, which will be held Thursday, December 2 from 6:30 to 8:00 PM in Council Conference Room 603; and the "Winterfest" event, which will be held downtown this Friday, December 3, with activities beginning at 5:00 PM. Brad Gehrin.q wished Dianne Robinson a "happy birthday" in honor of her birthday this Sunday; and cautioned drivers to be careful and responsible. Daren NyRren thanked the Police Department for their presentation of the City's "Sex Offender Awareness" Program"' and thanked all the staff of the Finance Department; and as part of "Winterfest", there would be a tree lighting at the Whitey Domstad Park in Manette. With no further business, the meeting of the City Council was adjourned at 8:30 PM. Prepared and Submitted by: LORI SMITH Legislative Assistant Attest: PAULA JOHNSTON, City Clerk DAREN NYGREN, City Council President DATE SUBMITTED: December 1, 2004 BILL # 0 ~4 - 0~ AGENDA BILL CITY OF BREMERTON CITY COUNCIL 6~ ............ :::"n'~ ......... ' ..... ' ...... '" ......... "'"' .... ' .... . ......... SUBJECT: Public hearing on Ordinance Committee Meeting Date: December 8, 2004 annexing land to the City of Bremerton COUNCIL MEETING Date: Dec. 15 and 22, 2004 Department: Community Development Presenter: Chris Hugo Phone: 473-5243 SUMMARY: The City received a petition for annexation requesting annexation of approximately 6.14 acres to the City of Bremerton. All of the requirements for annexation have been met and staff recommends approval of the annexation under the terms and conditions of the proposed ordinance. ATTACHMENTS: Proposed Ordinance No. '4~1 '~-':}--- Petition for Annexation FISCAL IMPACTS (Include Budgeted Amount): DEPARTMENT DIRECTOR: ~ CITY ATTORNEY: FINANCE DIRECTOR: "~ MAYOR: FISCAL/BUDGET: { f ~ (~U//,P$~~: :, CONSENT AGENDA RECOMMENDED MOTION: t~ 2. I move to pass Ordin~ce No. ~;~ Z.9--- on second reading a~exing approximately 6.14 acres to the City of Bremeaon. COUNCIL ACTION: [] Approve [] Deny 9 Table [] Continue [] No Action ORDINANCE NO. ~ q~ AN ORDINANCE of the City Council of the City of Bremerton, Washington, annexing to the City certain contiguous lands, comprised of approximately 6.14 acres, generally bounded on the east side of Pine Road just south of NE Roswell Drive, generally referred to as the "Racus Annexation"; making the property annexed assume and be subject to the City's proportionate share of its existing indebtedness; requiring the adoption of the City's Comprehensive Plan land use designation for the area as welt as a corresponding Zoning Map designation for the area annexed; making January 10, 2005 the effective date of the annexation; and authorizing the City Clerk to determine the resident population within the annexation area and to deliver required annexation information to the State Office of Financial Management and to the Kitsap County Board of Commissioners. WHEREAS, in accordance with RCW 35.13.130, Applicant Kenneth A. Racus as the owner of not less than 75 percent of the assessed valuation for general taxation of certain real property, comprised of approximately 6.14 acres, the "Racus Annexation" area, which is more particularly described in Exhibit A to this ordinance (map attached as Exhibit B), petitioned the Bremerton City Council to annex the Racus Annexation Area to the City of Bremerton; and WHEREAS, the City has determined the Racus Annexation area petition to be sufficient in all respects; and WHEREAS, in accordance with RCW 35.13.130 the City Council, pursuant to Resolution No. 2934, considered and authorized for circulation, a petition for annexation of the proposed area for annexation; and WHEREAS, on or about November 5, 2004, Kenneth A. Racus, as sole owner of the property to be annexed into the City, sold all right, title and interest in said property to The Brandywine Co., Inc.; and WHEREAS, The Brandywine Co., Inc. concurs with the annexation proceedings initiated by Kenneth Racus and desiring to continue with the same, as Applicant, filed with the City on or about November 18, 2004, the required petition for annexation as outlined by Resolution No. 2934 assuming the obligations of Mr. Kenneth Racus for annexing the proposed property to the City; and I Ractts Annexation 8 WHEREAS, the Applicant filed a Notice of Intention document with the Washington State Boundary Review Board for Kitsap County ("BRB") on or about October 14, 2004; and WHEREAS, the BRB has completed its review of the Applicant's Notice of Intention and annexation proposal; and WHEREAS, pursuant to WAC 197-11-800(6)(d), annexation of territory by a city or town is exempt from environmental (SEPA) review; and WHEREAS, the City has published in The Sun newspaper on December 3, 2004, and posted notice of a public hearing on the proposed Racus Annexation in accordance with RCW 35.13.140 so that interested persons could voice their approval or disapproval of the annexation; and WHEREAS, the City Council of the City of Bremerton held a public heating on the Racus Annexation in the City Council Chambers at a regularly scheduled meeting of the Bremerton City Council at 5:30 p.m. on December 15, 2004 and on December 22, 2004; and WHEREAS, it appears to the City of Bremerton that the Racus Annexation meets all requirements specified by law, that the land to be annexed is contiguous to the City of Bremerton, and that the annexation area has not heretofore been incorporated in or as a city or town; NOW THEREFORE, THE CITY COUNCIL OF THE CITY OF BREMERTON, WASHINGTON, DOES HEREBY ORDAIN AS FOLLOWS: SECTION 1. The foregoing recitals are incorporated by this reference and made a part hereof. SECTION 2. There shall be annexed to the City of Bremerton, Washington, certain property situated in Kitsap County, Washington, commonly known as the "Racus Annexation" area, which property is legally described in Exhibit A, attached and incorporated by this reference, and which is located and having the boundaries as indicated in the maps attached as Exhibit B, which is incorporated by this reference. SECTION 3. In accordance with the Racus Annexation property owners' petition, the property hereby annexed shall assume and be subject to its proportionate share of the City's existing indebtedness and shall be assessed and taxed at the same rate and on the same basis that other property within the City of Bremerton is assessed and taxed to pay for any outstanding general indebtedness of the City, if that indebtedness has been approved by the voters, contracted for, or incurred prior to, or existing at the effective date of this annexation. 2 Racus Ann exation 1 9 SECTION 4. The Racus Annexation area shall be subject to the City's Comprehensive Plan land use designation of Low Density Residential (LDR) and Zoning of Residential Low Density (SF3) and the Zoning map is hereby amended accordingly. SECTION 5. This annexation will become effective January 10, 2005, and on that date, the annexation area shall become a part of the City of Bremerton, subject to all the taws and ordinances of the City except as otherwise provided by law. SECTION 6. Pursuant to RCW 35.13.260, within thirty (30) days from the effective date of this annexation as provided by law, the City Clerk of the City of Bremerton shall, under the direction of the Mayor of the City of Bremerton, determine the resident population of the annexed territory, which population determination shall consist of an actual enumeration of the population that shall be made in accordance with the practices and policies and subject to approval of the State of Washington's Office of Financial Management and which population shall be determined as of the effective date of this annexation as specified in this ordinance. The City Clerk shall prepare a certificate signed by the Mayor and attested by the City Clerk in such form and containing such information as shall be prescribed by the State Office of Financial Management, and the City Clerk shall thereafter submit that certificate in triplicate to the Office of Financial Management together with the population determination of the annexed territory. SECTION 7. Upon passage of this annexation ordinance, the City Clerk of the City of Bremerton, pursuant to RCW 35.13.150, shall send to the Office of the Clerk of the Kitsap County Board of Commissioners a certified copy of this ordinance together with a copy of a letter from the BRB's Executive Secretary of the Kitsap County Boundary Review Board that declares the BRB's decision relating to this annexation. SECTION 8. Severability. If any one or more sections, subsections, or sentences 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. SECTIONg. Effective Date. This ordinance shall take effect and be in force ten (10) days from and after its passage, approval and publication as provided by law. APPROVED by the City Council the day of ,2004 PASSED by the City Council the day of ,2004 DAREN NYGREN, Council President Approved this day of ., 2004 CARY BOZEMAN, Mayor 3 Racus Annexation ATTEST: APPROVED AS TO FORM: PAULA JOHNSTON, City Clerk ROGER A. LUBOVICH, City Attorney PUBLISHED the day of ,2004 EFFECTIVE the day of ,2004 ORDINANCE NO. R:\LEGAL\Ordinances\Community Development\Racus Annexation.doc 4 Racus A nne.~cation Part of Tract 18, Robeson's One, Two and Five Acre Tracts, as per Volume 1 of Plats, Page 72, records of Kitsap County, described as follows: Beginning at the Southwest comer of said Tract 18; thence North 2o55'27'' East along the West line of Tract 18, 95.99 feet, more or less to existing fence; thence South 85049'08'' East following the fence, 651.69 feet to the East line of Tract 18; thence following the East line of Tract 18, South 3002'33'' West 59.80 feet more or less, to the Southeast comer of said Tract 18; thence following the South line of Tract 18, North 88059'56" West 652.46 feet to the point of beginning; situate in Kitsap County, Washington; and TOGETHER WITH the East half of the right-of-way of Pine Road abutting the above described part of said Tract 18; and Tract 19, Robeson's 1, 2, and 5 Acre Tracts, Volume 1 of Plats, Page 72, Kitsap County, Washington. Said parcels being situated on the east side of Pine Road approximately 100 feet south of NE Roswell Drive, in the Northeast ¼ of Section 2, Township 24 North, Raage 01 East, W.M.; and TOGETHER WITH the east half of the right-of-way of Pine Road abutting the above described Tract 19. EXHIBIT A E XHiI4BIT B PETITION FOR ANNEXATION OF TERRITORY TO CITY OF BREMERTON City Council CITY OF BREMERTON 239 - 4TM Street Bremerton, Washington 98337 Whereas on August 11, 2004 the City Council of Bremerton held a duly advertised public hearing to consider the Annexation Petition of Kenneth A. Racus and did agree to proceed to take the steps necessary to annex the Racus property so that such property be included within the Corporate Limits of the City of Bremerton; and Whereas on November 5, 2004 Mr. Kenneth A. Racus did sell and transfer all rights of ownership to the property described herein to The Brandywine Co., Inc., Mr. Racus is no longer in a position to pursue the annexation process started on August 11, 2004; and Whereas Mr. Jerry L. Clark, the President of The Brandywine Co., Inc. does concur with the annexation proceedings started by Mr. Racus and wishes continue with the annexation started by Mr. Kenneth A. Racus, this petition is now made on behalf of that Company; and Whereas there were no dissenting property owners represented in the properties proposed for annexation and therefore no need for action to modify the petition proposal considered at the August 11, 2004 public hearing, it is necessary for The Brandywine Co., Inc. to file this second petition before the annexation process can be completed; and Whereas We the undersigned, who are the owners, according to the records of the auditor of Kitsap County, of not less than 60% of the area of the following described real property situated in Kitsap County, Washington, respectfully present our final petition that the said real property be annexed to the City of Bremerton, Washington and we respectfully state as follows: 1. The area proposed to be annexed to the City is more particularly described as follows: Part of Tract 18, Robeson's One, Two and Five Acre Tracts, as per Volume 1 of Plats, Page 72, records of Kitsap County, described as follows: Beginning at the Southwest corner of said Tract 18; thence North 2*55'27" East along the West line of Tract 18, 95.99 feet, more or less to existing fence; thence South 85*49'08" East following the fence, 651.69 feet to the East line of Tract 18; thence following the East line of Tract 18, South 3'02'33" West 59.80 feet more or less, to the Southeast corner of said Tract 18; thence following the South line of Tract 18, North 88*59'56" West 652.46 feet to the point of beginning; situate in Kitsap County, Washington; and TOGETHER WITH the right-of-way of Pine Road .abutting the above described part of said Tract 18; and Tract 19, Robeson's 1,2 and 5 Acre Tracts, Volume 1 of Plats, Page 72, Kitsap County, Washington Said parcels being situated on the east side of Pine Road approximately 100 feet South of NE Roswell Drive, in the Northeast h of Section 2, Township 24 North, Range 01, East, W.M.; and TOGETHER WITH the right-of-way of Pine Road abutting the above described Tract 19. 2. The said area adjoins the existing boundaries of the City of Bremerton and is in Kitsap County. 3. A plat map outlining the boundaries of the real property described above is attached hereto and made a part of this petition. 4. The undersigned petitioners respectfully request the City Council of the City of Bremerton to entertain this petition and fix a date for public hearing thereon, such date to be not less than fifteen (15) days after notice of the date and time of the hearing has been published in one issue of a newspaper in general circulation in the area proposed to be annexed, the said notices are to specify the time and place of hearing and invite interested parties to appear and voice approval or disapproval for the proposed annexation Property Owner Name: Tax ID No._ 3962-000-018-0000 The Brandywine Co., Inc. Jerry L. Clark, President 5775 Soundview Dr., ~104A, Gig Harbor, Wa. 98335 Date: 2 Property Owner Name: Tax ID No._ 3962-000-019-0009 5775 Soundview Dr., #104A, Gig Harbor, Wa. 98335 STATE OF WASHINGTON ) )ss KITSAP COUNTY ) On this 1~~ day of ~~-~L , 2004, before me, the undersigned, a Notary Public in and for the State of Washington, duly commissioned and sworn, personally appeared Jerry L. Clark, President of The Brandywine Co., Inc., to me known to be the individual described herein and who executed the within and foregoing instrument, and acknowledge that He signed the same as His free and voluntary act and deed, for the uses and purposes therein mentioned, and on oath stated that He was authorized to execute said instrument. WITNESS MY HAND AND OFFICIAL SEAL this l~q~day of November, 2004. '""'"'"' ..-, O. ,/ ,~...-f~T~%-~% NOT~ LIC in and for the State of Washington / / 3 DATE SUBMITTED: 12/2/04 BILL it .~0q - ~ b _O AGENDA BILL CITY OF BREMERTON CITY COUNCIL ~8 ........... .... "-'""-"' ..................... -' .............. · ....... SUBJECT: Public Hearing & Or~tinance Committee Meeting Date: 12/8/04 Amending Chapter 3.48 of Bremerton COUNCIL MEETING Date: 12/15/04 &'12/22/04 Municipal Code Updating B/O Tax Department: City Attorney's Office Provisions Consistent with EHB 2030 Presenter: Roger A. Lubovich Phone: 473-2345 SUMMARY: On December 18, 2002, the City Council passed Ordinance No. 4843 adopting a new B&O Tax Code codified in Chapter 3.48 BMC. On April 21, 2003, the state legislature passed EHB 2030 establishing certain mandatory provisions to be included in Cities' B&O tax codes. One of the main issues addressed in this bill is apportionment of taxes among competing taxing jurisdictions. The proposed ordinance adopts these mandatory provisions and other changes including the following: 1. Changes or additions to the de£mitions of terms used in Chapter 3.48 BMC. 2. Removes the minimum tax and establishes an exemption f~om taxation for businesses with gross proceeds of $20,000 or less per year. ATTACHMENTS: 1) Proposed Ordinance FISCAL IMPACTS (Include Budgeted Amount): Implementation of the $20,000 threshold exemption will result in a $35,000 to $50,000 reduction in annual B/O tax revenue. APPROVALS: DEPARTMENT DIRECTOR: --.- CITY ATTORNEY: FINANCE DIRECTOR: ~' "4( MAYOR: FISCAL/BUDGET: "; ~ ~'- ~ , ~2_ ,, -~}i. ~.~ CONSENT AGENDA [] OPERATIONS: COUNCIL PRESIDENT: .-- ' ' ' I - RECOMMENDED MOTION: C,.,d .... L:;,:,,A '~D~.oh,~ ano u~cupauon T,~" t~ ~vd,~ IJ. udaJm~ consmt~m ~itl~ E:IB 222~:. Move to pass Ordinance No. ~,q ~P on second reading, COUNCIL ACTION: [] Approve [] Den.',' [] Table [] Continue [] NoAction 23 AN ORDINANCE of the City Council of the City of Bremerton, Washington, amending Chapter 3.48 of the Bremerton Municipal Code entitled "Business and Occupation Tax" to update the provisions of Chapter 3.48 consistent with the requirements of EHB 2030 passed by the state legislature during the 2003 legislative session. WHEREAS, the City Council passed ordinance No. 4843 on December 18, 2002, adopting a new business and occupation tax code for the city; and WHEREAS, the state legislature passed EHB 2030 on April 21, 2003, establishing certain mandatory provisions to be included in business and occupation tax codes; and WHEREAS, cities having business and occupation tax codes must adopt the mandatory provisions by December 31, 2004; and WHEREAS, the City Council desires to amend its business and occupation tax code in compliance with EHB 2030; NOW THEREFORE, THE CITY COUNCIL OF THE CITY OF BREMERTON, WASHINGTON, DOES HEREBY ORDAIN AS FOLLOWS: SECTION1. Section 3.48.030 of the Bremerton Municipal Code entitled "Definitions" relating to Business and Occupation Taxes is hereby amended to read as follows: 3.48.030 DEFINITIONS. In construing the provisions of this chapter, the following definitions shall be applied. Words in the singular number shall include the plural, and the plural shall include the singular. "Advance," "reimbursement." (1) "Advance" means money or credits received by a taxpayer from a customer or client with which the taxpayer is to pay costs or fees on behalf of the customer or client. (2) "Reimbursement" means money or credits received from a customer or client to repay the taxpayer for money or credits expended by the taxpayer in payment of costs or fees of the customer or client. "Agricultural product," "farmer." (1) "Agricultural product" means any product of plant cultivation or animal husbandry including, but not limited to: A product of horticulture, grain cultivation, vermiculture, viticulture, or aquaculture as defined in RCW 15.83.480; plantation Christmas trees; tuff; or any animal including but not limited to an animal that is a private sector cultured aquatic product as defined in RCW 15.83.480, or a bird, or insect, or the substances obtained from such an animal. "Aghcultural product" does not include animals intended to be pets. (2) "Farmer" means any person engaged in the business of grooving or producing, upon the person's own lands or upon the lands in which the person has a present right of possession, any 1 2004 Amend~nent - B&O Tax 24 agricultural product whatsoever for sale. "Farmer" does not include a person using such products as ingredients in a manufacturing process, or a person growing or producing such products for the person's own consumption. "Farmer" does not include a person selling any animal or substance obtained therefi'om in connection with the person's business of operating a stockyard or a slaughter or packing house. "Farmer" does not include any person in respect to the business of taking, cultivating, or raising timber. "Artistic or cultural organization". As used in this chapter: (1) The term "artistic or cultural organization" means an organization which is organized and operated exclusively for the purpose of providing artistic or cultural exhibitions, presentations, or performances or cultural or art education programs, as defined in subsection (I 0) of this section, for viewing or attendance by the general public. (2) The organization must be a not-for-profit corporation under chapter 24.03 RCW. (3) The organization must be managed by a governing board of not less than eight (8) individuals none of whom is a paid employee of the organization or by a corporation sole under chapter 24.12 RCW. (4) No part of its income may be paid directly or indirectly to its members, stockholders, officers, directors, or trustees except in the form of services rendered by the corporation in accordance with its purposes and bylaws. (5) Salary or compensation paid to its officers and executives must be only for actual services rendered, and at levels comparable to the salary or compensation of like positions within the state. (6) Assets of the corporation must be irrevocably dedicated to the activities for which the exemption is granted and, on the liquidation, dissolution, or abandonment by the corporation, may not inure directly or indirectly to the benefit of any member or individual except a non-pm fit organization, association, or corporation which also would be entitled to the exemption. (7) The corporation must be duly licensed or certified when licensing or certification is required by law or regulation. (8) The amounts received that qualify for exemption must be used for the activities for which the exemption is granted. (9) Services must be available regardless of race, color, national origin, ancestsy, religion, age, sex, marital status, sexual orientation, Vietnam or disabled veteran status, or the presence of any mental or physical disability. (10) The term "artistic or cultural exhibitions, presentations, or performances or cultural or art education programs" is limited to: (a) An exhibition or presentation of works of art or objects of cultural or historical significance, such as those commonly displayed in art or history museums; (b) A musical or dramatic performance or series of performances; or (c) An educational senfinar or program, or series of such programs, offered by the organization to the general public on an artistic, cultural, or historical subject. "Business." "Business" includes all activities engaged in with the object of gain, benefit, or advantage to the taxpayer or to another person or class, directly or indirectly. "Business and occupation tax." "Business and occupation tax" or "gross receipts tax" means a tax imposed on or measured by the value of products, the gross income of the business, or the gross proceeds of sales, as the case may be, and that is the legal liability of the business. "Cash discount." "Cash discount" means a deduction from the invoiced amount allowed by the seller if the bill is paid within a certain time period or before a specified date. 2 2004 Amendment - B&O Tax 25 "City." "City" means City of Bremerton, Washington. "Commercial or industrial use." "Commercial or industrial use" means the following uses of products, including by-products, by the extractor or manufacturer thereofi (1) Any use as a consumer; (2) Any use in the manufacturing of products including articles, substances or commodities; or (3) Consigning, shipping or transferring extracted or manufactured products to another either without consideration or in the performance of contracts. "Competitive telephone service." "Competitive telephone service" means the providing by any person of telecommunications equipment or apparatus, or service related to that equipment or apparatus such as repair or maintenance service, if the equipment or apparatus is of a type which can be provided by persons that are not subject to regulation as telephone companies under Title 80 RCW and for which a separate charge is made. "Consumer." "Consumer" means the following: ( 1 ) Any person who purchases, acquires, owns, holds, or uses any tangible or intangible personal property irrespective of the nature of the person's business and including, among others, without limiting the scope hereof, persons who install, repair, clean, alter, improve, construct, or decorate real or personal property of or for a consumer other than for the purpose of: (a) resale as tangible or intangible personal property in the regular course of business; Co) incorporating such property as an ingredient or component of real or personal property when installing, repairing, cleaning, altering, imprinting, improving, constructing, or decorating such real or personal property of or for consumers; (c) incorporating such property as an ingredient or component of a new product or as a chemical used in processing a new product when the primary purpose of such chemical is to create a chemical reaction directly through contact with an ingredient of a new product; or (d) consuming the property in producing ferrosilicon which is subsequently used in producing magnesium for sale, if the primary purpose of such property is to create a chemical reaction directly through contact with an ingredient of ferrosilicon; (2) Any person engaged in any business activity taxable under BMC 3.48.050(1)(g); (3) Any person who purchases, acquires, or uses any competitive telephone service as herein defined, other than for resale in the regular course of business; (4) Any person who purchases, acquires, or uses any personal, business, or professional service defined as a retail sale or retail service in BMC 3.48.030 other than for resale in the regular course of business; (5) Any person who is an end user of software; (6) Any person engaged in the business of"public road construction" in respect to tangible personal property when that person incorporates the tangible personal property as an ingredient or component of a publicly-owned street, place, mad, highway, easement, right-of-way, mass public transportation terminal or parking facility, bridge, tunnel, or trestle by installing, placing or spreading the property in or upon the right-of-way of a publicly-owned street, place, road, highway, easement, bridge, tunnel, or trestle or in or upon the site of a publicly-owned mass public transportation terminal or parking facility; (7) Any person who is an owner, lessee or has the right of possession to or an easement in real property which is being constructed, repaired, decorated, improved, or otherwise altered by a person engaged in business; 3 2004 Amendment- B&O Tax (8) Any person who is an owner, lessee, or has the right of possession to personal property which is being constructed, repaired, improved, cleaned, imprinted, or otherwise altered by a person engaged in business; (9) Any person engaged in "govemment contracting." Any such person shall be a consumer within the meaning of this subsection in respect to tangible personal property incorporated into, installed in, or attached to such building or other structure by such person; Nothing contained in this or any other subsection of this section shall be construed to modify any other definition of "consumer." "Deficiency." "Deficiency" means the amount of tax imposed by law less any tax reported by the taxpayer on a tax retum. "Director." "Director" means the Director of Finance of the City or any officer, agent or employee of the City designated to act on the Director's behalf. "Eligible gross receipts tax." The term "eligible gross receipts tax" means a tax which: (1) Is imposed on the act or privilege of engaging in business activities within section .050; and (2) Is measured by the gross volume of business, in terms of gross receipts and is not an income tax or value added tax; and (3) Is not, pursuant to law or custom, separately stated fi.om the sales price; and (4) Is not a sales or use tax, business license fee, franchise fee, royalty or severance tax measured by volume or weight, or concession charge, or payment for the use and enjoyment of property, property right or a privilege; and (5) Is a tax imposed by a local jurisdiction, whether with.in or without the State of Washington, and not by a Country, State, Province, or any other non-local jurisdiction above the County level. "Engaging in business" - "nexus" (1) The term "engaging in business" means commencing, conducting, or continuing in business, and also the exercise of corporate or franchise powers, as well as liquidating a business when the liquidators thereof hold themselves out to the public as conducting such business. (2) This section sets tbrth examples of activities that constitute engaging in business in the City, and establishes safe harbors for certain of those activities so that a person who meets the criteria may engage in de minimus business activities in the City without having to register and obtain a business license or pay City business and occupation taxes. The activities listed in this section are illustrative only and are not intended to narrow the definition of "engaging in business" in subsection (1). If an activity is not listed, whether it constitutes engaging in business in the City shall be determined by considering all the facts and circumstances and applicable law. (3) Without being all inclusive, any one of the following activities conducted within the City by a person, or its employee, agent, representative, independent contractor, broker or another acting on its behalf constitutes engaging in business and requires a person to register and obtain a business license pursuant to Chapter 5.02 BMC. (a) Owning, renting, leasing, maintaining, or having the right to use, or using, tangible personal property, intangible personal property, or real property permanently or temporarily located in the City. (b) Owning, renting, leasing, using, or maintaining, an office, place of business, or other establishment in the City. (c) Soliciting sales. 4 2004 Amendment - B&O Tar 27 (d) Making repairs or providing maintenance or service to real or tangible personal property, including warranty work and property maintenance. (e) Providing technical assistance or service, including quality control, product inspections, warranty work, or similar services on or in connection with tangible personal property sold by the person or on its behalf. (f) Installing, constructing, or supervising installation or construction of, real or tangible personal property. (g) Soliciting, negotiating, or approving fi'anchise, license, or other similar agreements. (h) Collecting current or delinquent accounts. (i) Picking up and transporting tangible personal property, solid waste, construction debris, or excavated materials. (j) Providing disinfecting and pest control services, employment and labor pool services, home nursing care, janitorial services, appraising, landscape architectural services, security system services, surveying, and real estate services including the listing of homes and managing real property. (k) Rendering professional services such as those provided by accountants, architects, attomeys, auctioneers, consultants, engineers, professional athletes, barbers, baseball clubs and other sports organizations, chemists, consultants, psychologists, court reporters, dentists, doctors, detectives, laboratory operators, teachers, veterinarians. (1) Meeting with customers or potential customers, even when no sales or orders are solicited at the meetings. (m) Training er recruiting employees, agents, representatives, independent contractors, brokers or others, domiciled or operating on a job in the City, acting on its behalf, or for customers or potential customers. (n) Investigating, resolving, or otherwise assisting in resolving customer complaints. (o) In-stem stocking or manipulating products or goods, sold to and owned by a customer, regardless of where sale and delivery of the goods took place. (p) Delivering goods in vehicles owned, rented, leased, used, or maintained by the person or another acting on its behalf. (cD Accepting or executing a contract with the City, irrespective of whether goods or services are delivered within or without the City, or whether the person's office or place of business is within or without the City. (4) If a person, or its employee, agent, representative, independent contractor, broker or another acting on the person's behalf, engages in no other activities in or with the City but the following, it need not register and obtain a business license and pay tax. (a) Meeting with suppliers of goods and services as a customer. (b) Meeting with government representatives in their official capacity, other than those performing contracting or purchasing functions. (c) Attending meetings, such as board meetings, retreats, seminars, and conferences, or other meetings wherein the person does not provide training in connection with tangible personal property sold by the person or on its behalf. (d) Renting tangible or intangible property as a customer when the property is not used in the City. 2004 Amendment - B&O Tax 28 (e) Attending, but not participating in a "trade show" or "multiple vendor events". Persons participating at a trade show shall review the City's trade show or multiple vendor event ordinances. (f) Mere delivery of goods via common carder. (g) Conducting advertising through the mail. (la) Sohciting sales by phone from a location outside the City. (5) A seller located outside the City merely delivering goods into the City by means of common carrier is not required to register and obtain a business license provided that it engages in no other business activities in the City. (6) "Nexus" A person has created nexus with the City if, whether itself or by its employees, agents, representative, independent contractors, brokers or others acting on its behalf, it: (a) is physically present in the City; (b) endeavors to maintain a share of the market within the City; or (c) avails itself of the economic benefits of the City. The City expressly intends that engaging in business include any activity sufficient to establish nexus for purposes of applying the tax under the law and the constitutions of the United States and the State of Washington. Nexus is presumed to continue as long as the taxpayer benefits from the activity that constituted the original nexus generating contact or subsequent contacts. "Extracting." "Extracting" is the activity engaged inby an extractor and is reportable under the extracting classification. "Extractor." "Extractor" means every person who from the person's own land or from the land of another under a right or license granted by lease or contract, either directly or by contracting with others for the necessary labor or mechanical services, for sale or for commercial or industrial use, mines, quarries, takes or produces coal, oil, natural gas, ore, stone, sand, gravel, clay, mineral or other natural resource product; or fells, cuts or takes timber, Christmas trees, other than plantation Christmas trees, or other natural products; or takes fish, or takes, cultivates, or raises shellfish, or other sea or inland water foods or products. "Extractor" does not include persons performing under contract the necessary labor or mechanical services for others; persons cultivating or raising fish entirely within confined rearing areas on the person's own land or on land in which the person has a present right of possession; or persons who fell, cut, or take plantation Christmas trees from the person's own land or from land in which the person has a present right of possession. "Extractor for Hire" "Extractor for hire" means a person who performs under contract necessary labor or mechanical services for an extractor. "Government contracting." "Government contracting" means the constructing, repairing, decorating, or improving of new or existing buildings or other structures under, upon, or above real property of or for the United States, any instrumentality thereof, or a county or city housing authority created pursuant to RCW Chapter 35.82, including the installing or attaching of any article of tangible personal property therein or thereto, whether or not such personal property becomes a part of the realty by virtue of installation. The term shall include the cleating of land and the moving of earth of or for the Untied States, any instrumentality, thereof, or a county of city housing authority. "Gross income of the business." "Gross income of the business" means the value proceeding or accruing by reason of the ~business activity engaged in and includes gross proceeds of sales, compensation for the rendition of services, gains realized fi-om trading in stocks, bonds, or other evidences of indebtedness, interest, discount, rents, royalties, fees, commissions, dividends, and other emoluments however designated, all without any deduction on account of the cost of tangible property 6 2004 Amendment - B&O Tar 29 sold, the cost of materials used, labor costs, interest, discount, delivery costs, taxes, or any other expense whatsoever paid or accrued and without any deduction on account of losses. "Gross proceeds of sales." "Gross proceeds of sales" means the value proceeding or accruing from the sale of tangible personal property or for services rendered, without any deduction on account of the cost of property sold, the cost of materials used, labor costs, interest, discount paid, delivery costs, taxes, or any other expense whatsoever paid or accrued and without any deduction on account of losses. "In this City," "within this City." "In this City" or "within this City" includes all federal areas lying within the corporate city limits of the City. "Janitorial Services." The term "Janitorial Services" shall mean those cleaning and care taking services ordinarily performed by commercial janitor service businesses including, but not limited to, wall and window washing, floor cleaning and waxing, and the cleaning in place of rags, drapes and upholstery. The term docs not include painting, papering, repairing, furnace or septic tank cleaning, snow removal, sandblasting, or cleanup related to construction activities. "Manuf~en,ring." "Manufacturing" means the activity conducted by a manufacturer and is reported under the manufacturing classification. "Manufacturer," "to manufacture." (1) "Manufacturer" means every person who, either directly or by contracting with others for the necessary labor or mechanical services, manufactures for sale or for commercial or industrial use from the person's own materials or ingredients any products. When the owner of equipment or facilities furnishes, or sells to the customer prior to manufacture, materials or ingredients equal to less than twenty percent (20%) of the total value of all materials or ingredients that become a pan of the finished product, the owner of the equipment or facilities will be deemed to be a processor for hire and not a manufacturer. A business not located in this City that is the owner of materials or ingredients processed for it in this City by a processor for hire shall be deemed to be engaged in business as a manufacturer in this City. (2) "To manufacture" means all activities of a commercial or industrial nature wherein labor or skill is applied, by hand or machinery, to materials or ingredients so that as a result thereof a new, different or useful product is produced for sale or commercial or industrial use, and shall include: (a) the production of special made or custom made articles; (b) the production of dental appliances, devices, restorations, substitutes, or other dental laboratory products by a dental laboratory or dental technician; (c) crushing and/or blending of rock, sand, stone, gravel, or ore; and (d) the producing of articles for sale, or for commercial or industrial use fi'om raw materials or prepared materials by giving such materials, articles, and substances of trade er commerce new forms, qualities, properties or combinations including, but not limited to, such activities as making, fabricating, processing, refining, mixing, slaughtering, packing, aging, curing, mild curing, preserving, canning, and the preparing and freezing of flesh fi'uits and vegetables. "To manufacture" shall not include the production of computer solMvare if the computer software is delivered from the seller to the purchaser by means other than tangible storage media, including the delivery by use of a tangible storage media where the tangible storage media is not physically transferred to the purchaser. "Newspaper," "magazine," "periodical." "Newspaper" means a publication offered for sale regularly at stated intervals at least once a week and printed on newsprint in tabloid or broadsheet format folded loosely together without stapling, glue, or any other binding of any kind. 7 2004 Amendment - B&O Tax "Magazine, or periodical" means any printed publication, other than a newspaper, issued and offered for sale regularly at stated intervals at least once every three (3) months, including any supplement or special edition of the publication. Any publication meeting this definition qualifies regardless of its content. "Non-profit corporation or non-profit organization." "Non-profit corporation or non-profit organization" means a corporation or organization in which no part of the income can be distributed to its members, directors, or officers and that holds a current tax exempt status as provided under Sec. 501(c)(3) of the Intemal Revenue Code, as hereafter amended, or is specifically exempted from the requirement to apply for its tax exempt status under Sec. 501(c)(3) of the Internal Revenue Code, as hereafter amended. Where the term non-profit organization is used, it is meant to include a non-profit corporation. "Office", "place of business." "Office" or "place of business" means a fixed location or permanent facility where the regular business of the person is conducted and which is either owned by the person or over which the person exercises legal domin/on and control. The regular business of the person is presumed conducted at a location: (1) Whose address the person uses as its business mailing address, (2) Containing a telephone line listed in a public telephone directory or other similar publication under the business name; and (3) Where the person holds itself out to the general public as conducting its regular business through signage or other means; and (4) Where the person is required to obtain any appropriate state and local business license or registration unless they are exempted by law fi.om such requirement. A vehicle such as a pick-up, van, truck, boat or other motor vehicle is not an office or place of business. A post office box is not an office or place of business. Ifa person has an office or place of business, the person's home is not an office or place of business unless it meets the criteria for office or place of business above. If a person has no office or place of business, the person's home or apartment within the City will be deemed the place of business. "Person." "Person" means any individual, receiver, administrator, executor, assignee, trustee in bankruptcy, h-ust, estate, firm, co-partnership, joint venture, club, company, joint stock company, business trust, municipal corporation, political subdivision of the State of Washington, corporation, limited liability company, association, society, or any group of individuals acting as a unit, whether mutual, cooperative, fraternal, non-profit, or otherwise and the United States or any insmanentality thereofi "Precious metal bullion or monetized bullion." "Precious metal bullion" means any precious metal which has been put through a process of smelting or refining, including, but not limited to, gold, silver, platinum, rhodium, and palladium, and which is in such state or condition that its value depends upon its contents and not upon its form. For purposes of this section, "monetized bullion" means coins or other forms of money manufactured from gold, silver, or other metals and heretofore, now, or hereafter used as a medium of exchange under the laws of this state, the United States, or any foreign nation, but does not include coins or money sold to be manufactured into jewelry or works of art. "Processing for hire." "Processing for him" means the performance of labor and mechanical services upon materials or ingredients belonging to others so that as a result a new, different or useful product is produced for sale, or commercial or industrial use. A processor for hire is any person who would be a manufacturer if that person were performing the labor and mechanical services upon that person's own materials or ingredients. Ifa person furnishes, or sells to the customer prior to manufacture, materials or ingredients equal to twenty percent (20%) or more of the total value of all materials or 8 2004 Atnend~nent - B&O Tax 31 ingredients that become a part of the finished product the person will be deemed to be a manufacturer and not a processor for hire. "Product", "Byproduct." "Product" means tangible personal property, including articles, substances, or commodities created, brought forth, extracted, or manufactured by human or mechanical effort. "Byproduct" means any additional product, other than the principal or intended product, which results t~om extracting or manufacturing activities and which has a market value, without regard to whether or not such additional product was an expected or intended result of the extracting or manufacturing activities. "Public road construction." "Public road construction" means the building, repairing, or improving of any street, place, mad, highway, easement, right-of-way, mass public transportation teminal or parking facility, bridge, tannel, or trestle which is owned by a municipal corporation or a political subdivision of the state or by the United States and which is used or to be used primarily for foot or vehicular traffic including mass transportation vehicles of any kind. "Reporting period." "Reporting period" means: (1) A one-month period beginning the first day of each calendar month (monthly); or (2) A three-month period beginning the first day of January', April, July or October of each year (quarterly); or (3) A twelve-month period beginning the flint day of January of each year (annual). "Retailing." "Retailing" means the activity of engaging in making sales at retail and is reported under the retailing classification. "Retail Service." "Retail service" shall include the sale of or charge made for personal, business, or professional services including amounts designated as interest, rents, fees, admission, and other service emoluments however designated, received by persons engaging in the following business activities: (1) Amusement and recreation services including but not limited to golf, pool, billiards, skating, bowling, swimming, bungee jumping, ski lifts and tows, basketball, racquet ball, handball, squash, tennis, batting cages, day trips for sightseeing purposes, and others, when provided to consumers. "Amusement and recreation services" also include the provision of related facilities such as basketball courts, tennis courts, handball courts, swimming pools, and charges made for providing the opportunity to dance. The term "amusement and recreation services" does not include instructional lessons to learn a particular activity such as tennis lessons, swimming lessons, or archery lessons. (2) Abstract, title insurance, and escrow services; (3) Credit bureau services; (4) Service charges associated with tickets to professional sporting events; and (5) The following pemonal services: Physical fitness services, tanning salon services, tattoo parlor services, steam bath services, turkish bath services, escort services, and dating services. (6) The term shall also include the renting or leasing oftang/ble personal property to consumers and the rental of equipment with an operator. "Return." "Return" means any document a person is required by the City to file to satisfy or establish a tax or fee obligation that is administered or collected by the City and that has a statutorily defined due date. "Royalties." "Royalties" means compensation for the use of intangible property, such as copyrights, patents, licenses, franchises, trademarks, tradenames, and similar items. "Sale," "casual or isolated sale." (1) "Sale" means any transfer of the ownership of, title to, or possession of, property for a valuable consideration and includes any activity classified as a "sale at retail," "retail sale, or "retail 9 2004 Amendment - B&O Tmr 32 service." It includes renting or leasing, conditional sale contracts, leases with option to purchase, and any contract under which possession of the property is given to the purchaser but title is retained by the vendor as security for the payment of the purchase price. It also includes the furnishing of food, drink, or meals for compensation whether consumed upon the premises or not. (2) "Casual or isolated sale" means a sale made by a person who is not engaged in the business of selling the type of property involved on a routine or continuous basis. "Sale at retail," "retail sale." (1) "Sale at retail" or "retail sale" means every sale of tangible personal property (including articles produced, fabricated, or imprinted) to all persons irrespective of the nature of their business and including, among others, without limiting the scope hereof, persons who install, repair, clean, alter, improve, construct, or decorate real or personal property of or for consumers, other than a sale to a person who presents a resale certificate under RCW 82.04.470 and who: (a) Purchases for the purpose of resale as tangible personal property in the regular course of business without intervening use by such person; or (b) Installs, repairs, cleans, alters, imprints, improves, constructs, or decorates real or personal property of or for consumers, if such tangible personal property becomes an ingredient or component of such real or personal property without intervening use by such person; or (c) Purchases for the purpose of consuming the property purchased in producing for sale a new article of tangible personal property or substance, of ~vhich such property becomes an ingredient or component or is a chemical used in processing, when the primary purpose of such chemical is to create a chemical reaction directly through contact with an ingredient of a new article being produced for sale; or (d) Purchases for the purpose of consuming the property purchased in producing ferrosilicon which is subsequently used in producing magnesium for sale, if the primary purpose of such property is to create a chemical reaction directly through contact with an ingredient of ferrosilicon; or (e) Purchases for the purpose of providing the property to consumers as part of competitive telephone service, as defined in RCW 82.04.065. The term shall include every sale of tangible personal property which is used or consumed or to be used or consumed in the performance of any activity classified as a "sale at retail" or "retail sale" even though such property is resold or utilized as provided in (a), (b), (c), (d), or (e) of this subsection following such use. (2) "Sale at retail" or "retail sale" also means every sale of tangible personal property to persons engaged in any business activity which is taxable under BMC 3.48.050(1)(g). (3) 'Sale at retail" or "retail sale' shall include the sale of or charge made for tangible personal property consumed and/or for labor and services rendered in respect to the following: (a) The installing, repairing, cleaning, altering, imprinting, or improving of tangible personal property of or for consumers, including charges made for the mere use of facilities in respect thereto, but excluding charges made for the use of coin-operated laundry facilities when such facilities are situated in an apartment house, rooming house, or mobile home park for the exclusive use of the tenants thereof, and also excluding sales of laundry service to nonprofit health care facilities, and excluding services rendered in respect to live animals, birds and insects; (b) The constructing, repairing, decorating, or improving of new or existing buildings or other structures under, upon, or above real property of or for consumers, including 10 2004 Amendment - B&O Tax 33 the installing or attaching of any article of tangible personal property therein or thereto, whether or not such personal property becomes a part of the realty by virtue of installation, and shall also include the sale of services or charges made for the clearing of land and the moving of earth excepting the mere leveling of land used in commercial farming or agriculture; (c) The charge for labor and services rendered in respect to constructing, repairing, or improving any structure upon, above, or under any real property owned by an owner who conveys the property by title, possession, or any other means to the person performing such construction, repair, or improvement for the purpose of performing such construction, repair, or improvement and the property is then reconveyed by title, possession, or any other means to the original owner; (d) The sale of or charge made for labor and services rendered in respect to the cleaning, fumigating, razing or moving of existing buildings or structures, but shall not include the charge made for janitorial services, which is taxed as a service in this chapter; (e) The sale of or charge made for labor and services rendered in respect to automobile towing and similar automotive transportation services, but not in respect to those required to report and pay taxes under chapter 82.16 RCW; (0 The sale of and charge made for the fumishing of lodging and all other services, except network telephone service and cable service, by a hotel, rooming house, tourist court, motel, trailer camp, and the granting of any similar license to use real property, as distinguished from the renting or leasing of real property, and it shall be presumed that the occupancy of real property for a continuous period of one month or more constitutes a rental or lease of real property and not a mere license to use or enjoy the same; (g) The sale of or charge made for tangible personal property, labor and services to persons taxable under (a), (b), (c), (d), (e), and (f) of this subsection when such sales or charges are for property, labor and services which are used or consumed in whole or in part by such persons in the performance of any activity defined as a "sale at retail" or "retail sale" even though such property, labor and services may be resold after such use or consumption. Nothing contained in this subsection shall be construed to modify subsection (l) of this section and nothing contained in subsection (1) of this section shall be construed to modify this subsection. (4) "Sale at retail" or "retail sale" shall also include the providing of competitive telephone service to consumers. (5) "Sale at retail" or "retail sale" shall also include the sale of canned sot~ware other than a sale to a person who presents a resale certificate under RCW 82.04.470, regardless of the method of delivery to the end user, but shall not include custom software or the customization of canned software. (6) "Sale at retail" or "retail sale" shall also include the sale of or charge made for labor and services rendered in respect to "public road constmction." (7) "Sale at retail" or "retail sale" shall also include the sale of or charge made for labor and services rendered in respect to "govemment contracting." (8) "Sate at retail" or "retail sale" shall also include automobile parking and storage garage services; (9) "Sale at retail" or "retail sale" shall also include landscape maintenance and horticultural services but excluding (i) horticultural services provided to farmers and (ii) pmning, trimming, repairing, removing, and cleating of trees and brash near electric transmission or distribution lines or equipment, if performed by or at the direction of an electric utility; 11 2004 Atnendment- B&O Tar ~4 (10) "Sale at retail" or "retail sale" shall not include the sale of services or charges made for the clearing of land and the moving of earth of or for the United States, any instrumentality thereof, or a county or city housing authority. Nor shall the term include the sale of services or charges made for cleaning up for the United States, or its instrumentalities, radioactive waste and other byproducts of weapons production and nuclear research and development. (This is reported under the service or other classification). (11) "Sale at retail" or "retail sale" shall not include the sale of or charge made for labor and services rendered for environmental remedial action as defined in RCW 82.04.2635(2) (This is reported under the service and other classification). "Sale at wholesale," "wholesale sale." "Sale at wholesale" or "wholesale sale" means any sale of tangible personal property which is not a retail sale, and any charge made for labor and services rendered for persons who are not consumers, in respect to real or personal property, if such charge is expressly defined as a retail sale when rendered to or for consumers. Sale at wholesale also includes the sale of network telephone service to a telecommunications company as defined in RCW 80.04.010 for the purpose of resale, as contemplated by RCW 35.21.715. "Services." "Services" means any business activity other than or in addition to those defined in this section. "Software", "canned software," "custom software," "customization of canned software," "master copies," "retained rights." (1) "Canned software" means sol°~ware that is created for sale to more than one (1) person. For purposes of this chapter, canned software is deemed to be tangible personal property regardless of the method of delivery-tangible media (e.g., disk or installed on hardware) or intangible (e.g., electronically over telecommunications paths). (2) "Custom software" means software created for a single pemon. (3) "Customi~,ation of canned software" means any alteration, modification, or development of applications using or incorporating canned software to specific individualized requirements of a single person. Customization of canned software includes individualized configuration of software to ~vork with other software and computer hardware but does not include routine installation. Customization of canned software does not change the underlying character or taxability of the original canned software. (4) "Master copies" of software means copies of software t~om which a software developer, author, inventor, publisher, licensor, sublicensor, or distributor makes copies for sale or license. The software encoded on a master copy and the media upon which the software resides are both ingredients of the master copy. (5) "Retained rights" means any and all rights, including intellectual property rights such as those rights arising from copyrights, patents, and trade secret laws, that are owned or are held under contract or license by a software developer, author, inventor, publisher, licensor, sublicensor, or distributor. (6) "Software" means any information, program, or murine, or any set of one (1) or more programs, routines, or collections of information used, or intended for use, to convey information that causes one or more computers or pieces of computer-related peripheral equipment, or any combination thereof, to perform a task or set of tasks. "Software" includes the associated documentation, materials, or ingredients regardless of the media upon which that doctanentation is provided, that describes the code and its use, operation, and maintenance and that typically is delivered with the code to the consumer. All soRware is classified as either canned or custom. 12 2004 Amendment - B&O Tar "Successor." "Successor" means any person to whom a taxpayer quitting, selling out, exchanging, or disposing of a business sells or otherwise conveys, directly or indirectly, in bulk and not in the ordinary course of the taxpayer's business, any part of the materials, supplies, merchandise, inventory, fixtures, or equipment of the taxpayer. Any person obligated to fulfill the terms of a contract shall be deemed a successor to any contractor defaulting in the performance of any contract as to which such person is a surety or guarantor. "Taxpayer." "Taxpayer" means any "person", as herein defined, required to have a business license under ttfis chapter or liable for the collection of any tax or fee under this chapter, or who engages in any business or who performs any act for which a tax or fee is imposed by this chapter. "Tax year," "taxable year." ''Tax year" or "taxable year" means the calendar year. "Tuition fee." ''Tuition fee" includes library, laboratory, health service and other special fees, and amounts charged for room and board by an educational institution when the property or service for which such charges are made is furnished exclusively to the students or faculty of such institution. "Educational institution," as used in this section, means only those institutions created or generally accredited as such by the state and includes educational programs that such educational institution cosponsors with a non-profit organization, as defined by the Internal Revenue Code Section 501 (c)(3), as hereafter amended, if such educational institution grants college credit for coursework successfully completed through the educational program, or an approved branch campus of a foreign degree- granting institution in compliance with chapter 28B.90 RCW, and in accordance with RCW 82.04.4332 or defined as a degree-granting institution under RCW 28B.85.010(3) and accredited by an accrediting association recognized by the United States secretary of education, and offering to students an educational program of a general academic nature or those institutions which are not operated for profit and which are privately endowed under a deed of trust to offer instruction in trade, industry, and agriculture, but not including specialty schools, business colleges, other trade schools, or similar institutions. "Value proceeding or accruing." 'Value proceeding or accruing" means the consideration, whether money, credits, rights, or other property expressed in terms of money, a person is entitled to receive or which is actually received or accrued. ~he term shall be applied, in each case, on a cash receipts or accrual basis according to which method of accounting is regularly employed in keeping the books of the taxpayer. The value proceeding or accruing fi.om sales on the installment plan under conditional contracts of sale shall be reported as of the dates when the payments become due. "Value of products." (1) The value of products, including by-products, extracted or manufactured, shall be determined by the gross proceeds derived from the sale therenf whether such sale is at wholesale or at retail, to which shall be added all subsidies and bonuses received fi.om the purchaser or fi.om any other person with respect to the extraction, manufacture, or sale of such products or by-products by the seller. (2) Where such products, including by-products, are extracted or manufactured for commercial or industrial use; and where such products, including by-products, are shipped, transported or transferred out of the City, or to another person, without prior sale or are sold under circumstances such that the gross proceeds fi-om the sale are not indicative of the true value of the subject matter of the sale; the value shall correspond as nearly as possible to the gross proceeds fi.om sales in this state of similar products of like quality and character, and in similar quantities by other taxpayers, plus the amount of subsidies or bonuses ordinarily payable by the purchaser or by any th/rd person with respect to the extraction, manufacture, or sale of such products. In the absence of sales of similar products as a guide to value, such value may be determined upon a cost basis. In such cases, t3 2004 Amendment - B&O Tax there shall be included every item of cost attnq>utable to the particular article or article extracted or manufactured, including direct and indirect overhead costs. The Director may prescribe rules for the purpose of ascertaining such values. (3) Notwithstanding subsection (2) above, the value of a product manufactured or produced for purposes of serving as a prototype for the development ora new or improved product shall correspond to (a) the retail selling price of such new or improved product when first offered for sale; or (b) the value of materials incorporated into the prototype in cases which the new or improved product is not offered for sale. "Wholesaling." "'Wholesaling" means engaging in the activiW of making sales at wholesale~ and is reported under the wholesaling classification. SECTIONZ Section 3.48.050 of the Bremerton Municipal Code entitled "Imposition of the Tax - Tax or Fee Levied" relating to Business and Occupation Taxes is hereby amended to read as follows: 3.48.050 IMPOSITION OF THE TAX - TAX OR FEE LEVIED. (1) Tax LmSc~hnposition of the tax - tax or fee levied. Except as provided in subsection (2) of this section, t:ghere is hereby levied upon and shall be collected fi.om eve~ person a tax for the act or privilege of engaging in business activities within the City, whether the person's office or place of business be within or without the City. The tax shall be in mounts to be determined by application of rates against gross proceeds of sale, gross income of business, or value of products, including by-products, as the case may be, as follows: (a) Extractor. Upon every person engaging within the City in business as an extractor; as to such persons the mount of the tax with respect to such business shall be equal to the value of the products, including by-products, extracted for sale or for commercial or industrial use, multiplied by the rate of one and six-tenths of one percent (.0016). The measure of the tax is the value of the products, including by-products, so extracted, regardless of the place of sale or the fact that deliveries may be made to points outside the City. ~o) Manufacturer. Upon every person engaging within the City in business as a manufacturer; as to such persons the amount of the tax with respect to such business shall be equal to the value of the products, including by-products, manufactured, multiplied by the rate of one and six- tenths of one percent (.0016). The measure of the tax is the value of the products, including by- products, so manufactured, regardless of the place of sale or the fact that deliveries may be made to points outside the City. (c) IKholesale. Upon every person engaging within the City in the business of making sales at wholesale, as to such persons, the amount of tax with respect to such business shall be equal to the gross proceeds of such sales of the business without regard to the place of delivery of articles, commodities or merchandise sold, multiplied by the rate of one and six-tenths of one percent (.0016). (d) Retail. Upon every person engaging within the City in the business of making sales at retail; as to such persons, the amount of tax with respect to such business shall be equal to the gross proceeds of such sales of the business without regard to the place of delivery of articles, commodities or merchandise sold, multiplied by the rate of one and one quarter of one percent (.00125). (e) Printing and Publishing. Upon every person engaging within the City in the business of (i) printing, (ii) both printing and publishing newspapers, magazines, periodicals, books, 14 2004 Amendment - B&O Tax 37 music, and other printed items, (iii) publishing newspapers, magazines and periodicals, (iv) extracting for hire, and (v) processing for hire; as to such persons, the amount of tax on such business shall be equal to the gross income of the business multiplied by the rate of one and nine-tenths of one percent (.0019). (f) Retail service. Upon every person engaging within the City in the business of making sales of retail services; as to such persons, the amount of tax with respect to such business shall be equal to the gross proceeds of sales multiplied by the rate of two tenths of one percent (.002). (g) Service. Upon every other person engag/ng within the City in any business activity other than or in addition to those enumerated in the above subsections; as to such persons, the amount of tax on account of such activities shall be equal to the gross income of the business multiplied by the rate of two tenths of one percent (.002). This subsection includes, among others, and without limiting the scope hereof(whether or not title to material used in the performance of such business passes to another by accession, merger or other than by outright sale), persons engaged in the business of developing, or producing custom software or of customizing canned software, producing royalties or commissions, and persons engaged in the business of rendering any type of service which does not constitute a sale at retail or a sale at wholesale or a retail service. (2) The gross receipts tax imposed in this section shall not apply to any person whose gross proceeds of sales, gross income of the business, and value of products, including by-products, as the case may be~ fi.om all activities conducted within the City during any calendar year is equal to or less than $20~000. (3) The tax levied pursuant to this chapter shall be in addition to any other tax or fee that may be imposed or levied by the City of Bremerton. SECTION3. A new section, Section 3.48.076 entitled "Assignment of Gross Income Derived From Intangibles" relating to Business and Occupation Taxes is hereby added to the Bremerton Municipal Code to read as follows: 3.48.076 ASSIGNMENT OF GROSS INCOME DERIVED FROM INTANGIBLES. Gross income derived fi.om the sale of intangibles such as royalties, trademarks, patents, or goodwill shall be assigned to the .jurisdiction where the person is domiciled (its headquarters is located). SECTION4. Section 3.48.090 of the Bremerton Municipal Code entitled "Exemptions" relating to Business and Occupation Taxes is hereby amended to read as follows: 3.48.090 EXEMPTIONS. (1) Non-Profit Corporations Or Non-Profit Organizations. This section shall not apply to non-profit organizations exempt from federal income tax under Section 501(c)(3) of the Internal Revenue Code, as hereafter amended, except with respect to retail sales of such persons. 15 2004 Amendtnent - B&O Tax 38 (2) Health maintenance organization, health care service contractor, certified health plan. Beginning on January 1, 2000 tiffs chapter does not apply to any health maintenance organization, health care service contractor, or certified health plan in respect to premiums or prepayments that are taxable under RCW 48.14.0201. (3) Public utilities. This chapter shall not apply to any pemon in respect to a business activity with respect to which tax liability is specifically imposed under the provisions of Chapter 3.50 BMC. (4) Investments - dividends from subsidiary corporations. This chapter shall not apply to amounts derived by persons, other than those engaging in banking, loan, security, or other financial businesses, fi.om investments or the use of money as such, and also amounts derived as dividends by a parent fi.om its subsidiary corporations. (5) International banking facilities. This chapter shall not apply to the gross receipts of un international banking facility. As used in this subsection, an "international banking facility" means a facility represented by a set of asset and liability accounts segregated on the books and records ora commercial bank, the principal office of which is located in this state, and which is incorporated and doing business under the laws of the United States or of this state, a United States branch or agency of a foreign bank, an Edge corporation organized under Section 25(a) of the Federal Reserve Act, 12 United States Code 611-631, or an Agreernent corporation having un agreement or undertaking with the Board of Govemom of the Federal Reserve System under Section 25 of the Federal Reserve Act, 12 United States Code 601-604(a), that includes only intemational banking facility time deposits (as defined in subsection (a)(2) of Section 204.8 of Regnlation D (12 CFR Part 21M), as promulgated by the Board of Governors of the Federal Reserve System), and intemational banking facility extensions of credit (as defined in subsection (a)(3) of Section 204.8 of Regulation D). (6) Insurance business. This chapter shall not apply to amounts received by any person or agent who is an insurer upon which a tax based on gross premiums is paid to the state pursuant to RCW 48.14.020; provided that the provisions of this subsection shall not exempt any person engaging in the business of insurance as a broker as defined in RCW 48.17.020 or as a solicitor as defmed in RCW 48.17.030; and provided further, that the provisions of this subsection shall not exempt any bonding company fi.om tax with respect to gross income derived fi.om the completion of any contract as to which it is a surety, or as to any liability as successor to the liability of the defaulting contractor. (7) Farmem - agriculture. This chapter shall not apply to any farmer in respect to amounts received fi.om selling fruits, vegetables, berries, butter, eggs, fish, milk poultry, meats or any other agricultural product that is raised, caught, produced, or manufactured by such persons. (8) Athletic exhibitions. This chapter shall not apply to any person in respect to the business of conducting boxing contests and sparring or wrestling matches and exhibitions for the conduct of which a license must be secured from the State Boxing Commission. (9) Racing. This chapter shall not apply to any person in respect to the business of conducting race meets for the conduct of which a license must be secured from the Washington State Home Racing Commission. (10) Ride sharing. This chapter does not apply to any funds received in the course of commuter ride sharing or ride sharing for persons with special transportation needs in accordance with RC%V 46.74.010. (11) Employees. This chapter shall not apply to: (a) Any person in respect to the person's employment in the capacity as an employee or servant as distinguished fi.om that of an independent contractor. For the purposes of this 16 2004 Antendment - B&O Tax subsection, the definition of employee shall include those persons that are defined in the Internal Revenue Code, as hereafter amended. (b) A booth renter, as defined by RCW 18.16.020, is an independent contractor for purposes of this chapter. (12) Amounts derived from sale of real estate. This chapter shall not apply to gross proceeds derived fi.om the sale of real estate. This, however, shall not be construed to allow an exemption of amounts received as commissions fi.om the sale of real estate, nor as fees, handling charges, discounts, interest or similar financial charges resulting fi.om, or relating to, real estate transactions. This chapter shall also not apply to amounts received for the rental of real estate if the rental income is derived from a contract to rent for a continuous period of thirty (30) days or longer. (13) Mortgage brokers' third-party provider services trust accounts. This chapter shall not apply to amounts received from trust accounts to mortgage brokers for the payment of third-party costs if the accounts are operated in a manner consistent with RCW 19.146.050 and any rules adopted by the director of financial institutions. (14) Amounts derived from manufacturing, selling or distributing motor vehicle fuel. This chapter shall not apply to the manufacturing, selling, or distributing motor vehicle fuel, as the term "motor vehicle fuel" is defined in RCW 82.36.010 and exempt under RCW 82.36.440, provided that any fuel not subjected to the state fuel excise tax, or any other applicable deduction or exemption, will be taxable under this chapter. (15) Amounts derived from liquor, and the sale or distribution of liquor. This chapter shall not apply to liquor as defined in RCW 66.04.010 and exempt in RCW 66.08.120. (16) Casual and isolated sales. This chapter shall not apply to the gross proceeds derived from casual or isolated sales. (17) Accommodation sales. This chapter shall not apply to sales for resale by persons regularly engaged in the business of making retail sales of the type of property so sold to other persons similarly engaged in the business of selling such property where (1) the amount paid by the buyer does not exceed the amount paid by the seller to the vendor in the acquisition of the article and (2) the sale is made as an accommodation to the buyer to enable the buyer to fill a bona fide existing order of a customer or is made within fourteen days to reimburse in kind a previous accommodation sale by the buyer to the seller. (18) Taxes collected as trust funds. This chapter shall not apply to amounts collected by the taxpayer from third parties to satisfy third party obligations to pay taxes such as the retail sales tax, use tax, and admission tax. SECTION 5. Severability. If any one or more sections, subsections, or sentences 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. 17 2004 Amendment - B&O 40 SECTION 6. E.f. fective Date. This ordinance shall take effect and be in force ten (10) days from and after its passage, approval and publication as provided by law. APPROVED by the City Council the day of ,2004 PASSED by the City Council the day of ~ 2004 DAREN NYGREN, Council President Approved this day of _, 2004 CARY BOZEMAN, Mayor ATTEST: APPROVED AS TO FORM: PAULA JOHNSTON, City Clerk ROGER A. LUBOVICH, City Attorney PUBLISHED the day of ., 2004 EFFECTIVE the _day of ., 2004 ORDINANCE NO. R:\LEGAL\Ordinances~Finance\2004 B&O Tax Amendment. doc 18 2004 Amendment- B&O Tar DATE SUBMITTED: December 8, 2004 BILL/4 AGENDA BILL CITY OF BREMERTON CITY COUNCIL 4883 relating to the C~ty of Breme~on s 2~ COUNC~ MEETING Date: December 15, 2~4 Annual Budget Department: Financial Se~ices Presenter: Michael R. Wilson Phone: 473-5590 SUM~RY: The Bremenon City Council adopted the 2004 Annual City Budget Ordinance (Ordin~ce No. 4883) on December 23, 2003. Ce~ain programs have been implemented ~d actions taken during the year which have an impact on the City's 2~ Annu~ Budget resulting in the need to amend the 2~ budget document. ATTACHMENTS: Ordinance ~, FISCAL IMPACTS (Include Budgeted Amount): The following funds and budgets will be impacted by the action taken by the City Council to amend the res~ctive budgets: Generfl Fund (Fund ~1), Parking System Revenue Fund (Fund 105), ULID NO. 2~2-01 (Fund 403), Conference Center Operating (Fund 410), Sto~water Utility Fund (Fund 481), and Equipment Rental & Revolving Fund (Fund 510). APPROVALS: / DEPARTMENT D~ECTOR: F~ANCE DIRECTOR: [ ~ [~ [,t ,),7 ~ .......... MAYOR: FISCA~UDGET: -'5~ COUNC~ PRESDENT: ' RECOM~NDED MOTION: B. I move to pass Ordinance No~:~fion second reading which amends Ordinance No. 4883 relating to the City of Breme~on 2~4 Annual Budget. COUNCIL ACTION: [] Approve [] Deny [] Table [] Continue [] No Action ORDINANCE NO. ~. ~,.~L~ ~ AN ORDINANCE of the City Council of the City of Bremerton, Washington, amending Ordinance No. 4883 as amended by Ordinance No. 4910 relating to the City of Bremerton Fiscal Year 2004 Budget. WHEREAS, the City Council passed the Fiscal Year 2004 City Budget Ordinance (Ordinance No. 4883) on December 23, 2003, which was amended on October 22, 2004 by Ordinance No. 4910; and WHEREAS, the General Fund (Fund 001) needs amendments to the following Departments: City Auditor to fund the interfund service payments to Information Technology for computer/network services; Non-Departmental to fund the cost of transferring thirty-one (31) patrol vehicles from the General Fund into the Equipment Rental & Reserve Fund; Non- Departmental reduction of salary/wages set aside for retirees and labor contract settlements and shifting of ER&R internal services from a "transfer out" expense to a "service" expense; Fire Department to cover the increase cost for salary/wages expense for retiring Fire Department personnel; and the Departments of Finance, Administrative Services, Municipal Court, Law Enforcement, Park& and Community Development to fund labor contract settlement wage increases and unbudgeted retirement costs; General Facilities for capital upgrades to the DCD facility; Engineering to fund the interfund service payments to Information Technology for computer/network services; and WHEREAS, the Parking System Operating Fund (Fund 105) needs to be amended to reflect increases in expenditures for providing parking garage management services to the new parking garage, excise tax payments and the $17,500 cost of installing an access door to the 4~h Street garage; and WHEREAS, the ULID No. 2002-01 Fund (Fund 403) needs to be amended to fund $50,000 of capital projects cost incurred in 2004; and WHEREAS, the Conference Center Operating Fund (Fund 410) needs to be amended to fund the operating expenses and collection of revenues by the Conference Center concessionaire and receipt of a line of credit to fund the pre-opening operating expenses and capital expenses for furniture, furnishings and equipment for the center; and WHEREAS, the Stormwater Utility Fund (Fund 481) needs to be amended to fund the Brentwood stormwater main replacement project from a $250,000 Public Works Trust Fund (PWTF) loan; and WHEREAS, the Equipment Rental & Reserve Fund (Fund 510) needs to be amended to fund the transfer of the patrol vehicle inventory of thirty-one (31 ) vehicles currently funded within the General Fund at a cost of $341,352; increase of $20,000 in supplies/services to cover the higher cost of fuel and equipment repairs; and increase of $14,500 for staff overtime and standby expenses; and WHEREAS, each of these actions has an impact on the City of Bremerton's FY 2004 Annual Budget resulting in the need to amend this Budget document; NOW THEREFORE, THE CITY COUNCIL OF THE CITY OF BREMERTON, WASHINGTON, DOES HEREBY ORDAiN AS FOLLOWS: SECTION 1. Ordinance 4883 establishing the City of Bremerton's 2004 Budget passed by the City Council on December 23, 2003, is hereby amended as follows: 1) The General Fund (Fund 001) is hereby amended to reflect the following appropriation adjustments: GENERAL FUND (Fund 001) FY 2004 Current Amended REVENUES 2004 Budget 2004 Budqet Difference State Upgrade Costs 0 4,000 4,000 Misc. Rent - Rent DCD 0 8~000 8,000 Total Revenues 12,000 12,000 EXPENDITURES Ending Fund Balance 1,240,964 878,612 <362,352> Department: Fire (001-14) Personnel - salades (retirement, labor settlement) 4,843,309 4,904,032 60,723 Department: Municipal Coud (001-14) Personnel - salades (labor contract settlement) 582,313 585,383 3,070 Department: Finance (001-20) Personnel - salades (retirement, labor settlement) 445,919 478,108 32,189 Department: Administrative Services (001-13) Personnel - salades (labor settlement) 282,817 284,269 1,452 Department: City Auditor (00%18) Supplies & Services - equipment repair/IFD 4,244 7,244 3,000 Department: Law Enforcement (001-51 ) Personnel - salaries (labor contract settlements) 6,128,734 6,166,138 37,404 Department: Community Development (001-16) Personnel - salaries (labor contract settlement) 806,817 810,909 4,092 Department: Parks (001-51) Personnel - salaries (tabor contract settlement 1,764,307 1,770,953 6,646 Department: Facilities (001-49) Supplies & Services - DCD Upgrades 82,200 90,200 8,000 Department: Engineering (001- 61) Supplies & Services - equipment repair/IFD 17,735 39,735 22,000 Department: Non-Departmental {001-73) Supplies & Services - equipment repair/IFD 1,131,293 1,920,523 789,230 Personnel set aside - retirement and labor contracts 309,508 163,932 <145,576> Other - Transfer out to Equipment Rental 3,149,009 2,701,131 <447,878~ Total Expenditures 20,789,169 20,801,169 12,000 2) The Parking System Revenue Fund (Fund 105) is hereby amended to reflect the following appropriation amendments: PARKING SYSTEM REVENUE FUND (Fund 106) FY 2004 Current Amended REVENUES 2004 Budget 2004 Budget Beginning Fund Balance 0 0 Fines & Forfeits 220,000 275,000 Misc. Revenues 858,500 753,600 Other Financing Soumes 66g,009 669,000 Total Revenues 1,747,509 1,697,600 EXPENDITURES Supplies, Services & Taxes (increase tax payments, prof. services new Parking garage ) 273,000 400,100 Capital Outlay - {fund installation of access door to 4~ St. Garage) 945,000 962,500 Ending Fund Balance 529,509 335,000 Total Expenditures 1,747,509 1,697,600 3) The ULID No. 2002-01 Fund (Fund 403) is hereby amended to reflect the following appropriation amendments: ULID 2002-01 FUND (Fund 403) FY 2004 Current Amended REVENUES 2004 Budget 2004 Budget Beginning Fund Balance 35,000 35,000 Non-Revenue Receipts 928,654 928,654 Total Revenues 963,654 963,654 EXPENDITURES Debt Service 963,654 913,654 Capital Outlay 0 50,000 Ending Fund Balance _0 0 Total Expenditures 953,654 963,654 4) The Conference Center Operating Fund (Fund 410) is hereby amended to reflect the following appropriation amendments: CONFERENCE CENTER OPERATING FUND (Fund 410) FY 2004 Current Amended REVENUES 2004 Budqet 2004 Budget Beginning Fund Balance 0 0 Charges for Services - 0 450,000 Other Financing Sources (receipt of $800,000 line of credit) 865,000 997,000 Total Revenues 865,000 1,447,000 EXPENDITURES Personnel - 0 0 Supplies & Services - (include conf. center operating expenses) 180,000 754,000 Capital Outlay 370,000 378,000 Debt Service 315,000 315,000 Ending Fund Balance _0 0 Total Expenditures 865,000 1,447,000 5) The Stormwater Utility Fund (Fund 481) is hereby amended to reflect the following appropriation amendments: STORMWATER UTILITY FUND (Fund 481) FY 2004 Current Amended REVENUES 2004 Bud,qet 2004 Budget Beginning Fund Balance 155,804 155,804 Charges for Services 1,025,000 1,025,000 Intergovernmental - PWTF 10an 0 250,000 Misc. Revenue 10,000 10~000 Total Revenues 1,190,804 1,440,804 EXPENDITURES Personnel 655,698 655,698 Supplies, Services and Taxes 383,447 383,447 Capital Expenditures - Brentwood Stormwater main 50,000 300,000 Transfers 100,000 100,000 Ending Fund Balance 1,659 1,659 Total Expenditures 1,190,804 1,440,804 6) The Equipment Rental and Reserve Fund (Fund 510) is hereby amended to reflect the following appropriation amendments: 4 EQUIPMENT RENTAL & RESERVE FUND (Fund 510) FY 2004 Current Amended REVENUES 2004 Budqet 2004 Bud(Jet Beginning Fund Balance 3,942,735 3,942,735 Charges for Services - (General Fund transfer for patrol vehicles) 702,824 1,044,176 Misc. Revenues 968,889 968,889 Non- Revenue Receipts 79,693 79,693 Other Financing Sources 120,000 120,000 Total Revenues 5,814,141 6,155,493 EXPENDITURES Personnel - overtime/standby expenses ($14,500 increase) 389,800 404,300 Supplies & Services - fuel/equipment repair ($20,000 increase) 694,470 714,470 Capital Outlay 620,000 620,000 Ending Fund Balance 4,109,871 4,416,723 Total Expenditures 5,814,141 6,155,493 SECTION2. Severabili02. If any one or more sections, subsections, or sentences 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. SECTION3. Effective Date. This ordinance shall take effect and be in force ten (10) days from and a~er its passage, approval and publication as provided by law. APPROVED by the City Council the day of ,2004 PASSED by the City Council the day of _, 2004 DAREN NYGREN, Council President Approved this day of ., 2004 CARY BOZEMAN, Mayor ATTEST: APPROVED AS TO FORM: PAULA JOHNSTON, City Clerk ROGER A. LUBOVICH, City Attorney PUBLISHED the day of ,2004 EFFECTIVE the day of ., 2004 ORDINANCE NO. R:\LEGAL\Ordinances\Finance~04 amending budget ordinance2.doc 5 48 2gOd Rt,do~,t DATE SUBMITTED: November 22, 2004 BILL/4 O ( ~ AGENDA BILL CITY OF BREMERTON CITY COUNCIL 6 D SUBJECT: Public Hearing on Ordinance Committee Meeting Date: 12/8/04 authorizing KCCHA to exercise public COUNCIL MEETING Date: 12/15 and 12/22/04 development authority powers Department: City Attorney's Office Presenter: Roger A. Lubovich Phone: 473 -2345 SUMMARY: RCW 35.82.0'70(12) provides that a city may authorize a housing authority to exercise not only the powers of a community renewal agency under chapter 35.g 1 RCW but also the powers of a public corporation, commission or authority (collectively, a "public development authority") under RCW 35.21.730 through .759. The proposed ordinance authorizes K. itsap County Consolidated Housing Authority to exercise powers cfa public development authority in order to assist the City in { 1) the allocation of federal new markets tax credits within portions of the City that may not be within the boundaries of a community renewal area, and (2) facilitating replacement housing in connection with the renewal and revitalization of West Park, including replacement housing in areas of the City not within the boundaries of a community renewal ATTACHMENTS: 1. Staff Report 2. Proposed Ordinance FISCAL IMPACTS (Include Budgeted Amount): APPROVALS: DEPARTMENT DIRECTOR: CITY ATTORNEY: FINANCE DIRECTOR: MAYOR: FISCAL/BUDGET: }v~ ~,6~'tC~'~ 1 3?' g / v T a .... ' / ~ '( CONSENT AGENDA [] OPERATIONS: {?l L C~( ttq I ~,,'~//~ ~ CO~CIL PRESIDENT: ~ , ~ ~. ~ .... ~COMMENDED MOTION: ~ 1. I move to approve the proposed ordinance on first reading autho~zing KCCHA to exercise powers of a public development authority. 2. I move to pass Ordinance No. ~ on second reading authorizing KCCHA ~o exercise powers o~ a public development authority. Office of [he City Attorney Roger A. Lubovich, City Attorney Memorandum TO: City Council Fi'om: Roger A. Lubovich, City Attomey [[e: Public Development Authority Powers Oats: November 22, 2004 Attached is draft ordinance that would authorize the Kitsap County Consolidated Housing Authority (Housing Authority) to exercise public development authority (PDA) powers within the boundaries of the City of Bremerton. This issue relates primarily to Housing Authority's desire to distribute federal new market tax credits for economic development, outside of Bremerton's Community Renewal Areas (urban renewal areas). For economic development work, the Housing Authority, as the City's Community Renewal Agent, must perform this work in the Community Renewal Areas for which the City appointed the Housing Authority as the Community Renewal Agency. The Housing Authority may want to hand out New Market Tax Credits in low-income areas that don't happen to be in a Community Renewal Area. According to Housing Authority, there are three or four census tracts in the City that are eligible for New Market Tax Credits, and there are three Community Renewal Areas (downtown, West Park, and Anderson Cove). But there are parts of those eligible census tracts that aren't in the Community Renewal Areas. For example, the Downtown Community Renewal Area is only 6 blocks, and they might want to use new market tax credits in an adjoining block that doesn't happen to be within the Downtown Community Renewal Area. There is a section in the housing authority law that says that a city can appoint a housing authority as a PDA. PDA's have broad powers to carry out federal programs, such as new market tax credits. Accordingly, the attached ordinance declares that Housing Authority may exercise community renewal powers outside the community renewal areas-*but only for certain specified purposes. The first is the New Market Tax Credits. The other purpose is to facilitate replacement housing for West Park. R:\LEGAL~Memos\RogerkKCCHA PDA authority.doc ORDINANCE NO. AN ORDINANCE of the City Council of the City of Bremerton authorizing the Kitsap County Consolidated Housing Authority to exercise powers of a public development authority within the City o£ Bremerton. WHEREAS, by Section 9 of Ordinance No. 4870, the City of Bremerton (the "City") ratified and confirmed its prior election, by Resolution No. 2755 and Ordinance No. 4830, to authorized and assign the Kitsap County Consolidated Housing Authority (the "Kitsap Authority") to exercise the powers ora community renewal agency pursuant to Chapter 35.8l RCW; and WHEREAS, RCW 35.82.070(12) provides that a city may authorize a housing authority to exercise not only the powers ora community renewal agency under chapter 35.81 RCW but also the powers of a public corporation, commission or authority (collectively, a "public development authority") under RCW 35.21.730 through. 759; and WHEREAS, public development authorities, and housing authorities exercising the powers of public development authorities, have useful statutory powers to execute and administer federal programs; and WHEREAS, the City desires that the Kitsap Authority assist in (1) the allocation of federal new markets tax credits within portions of the City that may not be within the boundaries of a community renewal area, and (2) the provision of assistance to both the City and the Bremerton Housing Authority to facilitate replacement housing in connection ~vith the renewal and revitalization of West Park, including replacement housing in areas of the City not within the boundaries of a community renewal area; NOW, THEREFORE, THE CITY COUNCIL OF THE CITY OF BREMERTON, WASHiNGTON, DOES HEREBY ORDAIN AS FOLLOWS: SECTIONL The recitals set forth above are hereby incorporated as if set forth herein in full. SECTION2. Pursuant to RCW 35.82.070(12), the City of Bremerton requests and authorizes the Kitsap County Consolidated Housing Authority to exercise any powers ora public corporation, commission or authority under chapter 35.21 RCW, specifically those powers authorized by RCW 35.21.730 through .759. The Kitsap Authority is authorized to exercise such public development authority powers: (1) in conjunction with the Kitsap Authority's activities as a community renewal agency for the City of Bremerton; (2) in conjunction with the allocation and use of"new markets tax credits" under Section 45D of the Internal Revenue Code in any qualifying ama of the City; (3) to facilitate replacement housing in connection with the renewal and revitalization of West Park; and (4) for such other purposes as may be subsequently approved by ordinance or resolution of the City. 1 KCCtL4 Public Development Authori~. SECTIONS. Pursuant to RCW 35.21.730(5), the liability of the Kitsap Cotmty Consolidated Housing Authority for its obligations that arise in connection with exercising the powers of a public development authority pursuant to this ordinance shall be limited to the assets and properties of the authority that are used, pledged or applied to the activities specified in Section 2 of this ordinance, and no recourse shall be permitted to the assets or credit of the City in connection therewith. SECTION4. The City Council ratifies and confirms all prior actions by officers or employees of the City or of the Kitsap Authority consistent with the provisions of this ordinance. SECTION 5. Severability. If any one or more sections, subsections, or sentences 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 ibrce and effect. SECTION 6. Effective Date. This ordinance shall take effect and be in force ten (10) days from and after its passage, approval and publication as provided by law. APPROVED by the City Council the day of ,2004 PASSED by the City Council the day of ,2004 DAREN NYGREN, Council President Approved this day of ,2004 CARY BOZEMAN, Mayor ATTEST: APPROVED AS TO FORM: PAULA JOHNSTON, City Clerk ROGER A. LUBOVICH, City Attorney PUBLISHED the day of ,2004 EFFECTIVE the day of ,2004 ORDINANCE NO. R:\LEGAL',Ordinances\Granting PDA Powers to KCCHA.DOC 2 KCCHA Public Development Attthori~, 52 DATE SUBMITTED: December 16, 2004 BILL # ~-' ~ ~X. AGENDA BILL CITY OF BREMERTON CITY COUNCIL ~ SUBJECT: PUBLIC HEARiNG AND Committee Meeting Date: RESOLUTION ON SURPLUS AND SALE COUNCIL MEETING Date: December 22, 2004 OF PUBLIC UTILITY PROPERTY Department: Public Works & Utilities Presenter: Phil Williams Phone: 473-5315 SUMMARY: The City has received an offer from Bealko, Inc. to purchase certain public utility property. The property is not currently used for public utility service nor will it be required for providing public utility service in the future. The offer to purchase the property is fair market value and the City and greater community would be better served by the surplus and sale of the property. ATTACHMENTS: 1. Memorandum from Roger A. Lubovich 2. Proposed Resolution with exhibits FISCAL IMPACTS (Include Budgeted Amount): The public utility would receive the sum of $2,900,000 (less fees and costs) from the sale of the property and the property would be retumed to the tax rolls. APPROVALS: DEPARTMENT DIRECTOR: CITY ATTORNEY: FINANCE DIRECTOR: MAYOR: FISCAL/BUDGET: CONSENT AGENDA [] OPERATIONS: COUNCIL PRESIDENT: _1.~.) RECOMMENDED MOTION: I move to pass Resolution No. ol, 9 ~[ q declaring the public utility property surplus, approving a sale of the property pursuant to BMC 2.78.040 to Bealko, Inc., approving the purchase and sale agreement and authorizing the Director of Public Works and Utilities and the City Attorney to finalize any and all documents necessary to close the transaction and authorize the Mayor to execute the same. COUNCIL ACTION: [] Approve [] Deny [] Table [] Continue [] No Action 53 Office of the City Attorney Roger A. Lubovich, City Attorney Memorandum TO: City Council FlrOnl: Roger A. Lubovi'h~~-- ~le: Offer to Purchase C(~y Utility ProPerty II~lt6: December 16, 2004 The City has received an offer to purchase the 38 acre utility property formerly known as he Tracyton Watershed property located northwest of the intersection of Sugar Pine Drive and Pine Cone Drive. The following documents are presented for your review: · Commercial & Investment Real Estate Purchase & Sale Agreement · Vacant Land Addendum to Commercial & Investment Real Estate Purchase & Sale Agreement · Addendum/Amendment to Purchase and Sale Agreement A summary of the terms of the above agreements follows: · Purchase price: $2.9 million · Earnest money: $145,000 promissory note · City to pay a4% Commission ($116,000) · The tank and easement areas are excluded from the sale · 120 day inspection contingency period · Transaction will close 45 days after plat inspection contingency is removed · Closing may be extended for 10 periods of 60 days each upon payment of a $10,000 extension fee in cash for each extension which is applied to the purchase price · Closing will occur no later than November 26, 2006 · City must make records available within 10 days of acceptance · The sale is not contingent upon annexation · The sale is contingent upon the selling price meeting or exceeding the appraised value · The property has a Comprehensive Land Use designation of Low Density Residential (LDR) RESOLUTION NO. ~o~q ~ A RESOLUTION of the City Council of the City of Bremerton, Washington, declaring certain public utility property surplus to the City's needs and approving a sale of the property in accordance with the provisions of BMC 2.78.040 and RCW 35.94.040. WHEREAS, the City has received an offer to purchase the public utility property depicted in Exhibit A and legally described in Exhibit B from Bealko, Inc., for $2,900,000, which sum is the fair market value of the property; and WHEREAS, the City Council has determined that the property is surplus to the City's needs and is not required for providing continued public utility service; and WHEREAS, pursuant to BMC 2.78.040 and RCW 35.94.040, a public hearing was held on December 22, 2004 relating to the proposed surplus and sale of the property; NOW THEREFORE, THE CITY COUNCIL OF THE CITY OF BREMERTON, WASHINGTON, DOES HEREBY RESOLVE AS FOLLOWS: SECTION 1. The public utility property legally described in Exhibit B is hereby declared surplus to the City's needs and is not required for providing continued public utility service. SECTIONZ The sale of the above-mentioned property creates a benefit to the City and the greater community and therefore a negotiated sale is hereby authorized pursuant to BMC 2.78.040. SECTION3. The Director of Public Works and Utilities and the City Attorney are hereby authorized to finalize a purchase and sale agreement with substantially the same tenns and conditions as set forth in the proposed agreement attached as Exhibit C authorizing the sale of the property to Bealko, Inc. for $2,900,000. SECTION4. The Mayor is authorized to execute any and all documents, including but not limited to statutory warranty deeds and real estate excise tax affidavits, necessary to complete the transaction. SECTION 5. Severabilitv. 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. 1 Surplus and Sale of Public Utility Property 55 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 __ day of ., 2004. DAREN NYGREN, Council President APPROVED AS TO FORM: ATTEST: ROGER A. LUBOVICH, City Attorney PAULA JOHNSTON, City Clerk R:\LEGAL~Filcs\Current Active Files\Tracyton Watershed Sale\Surplus and Sale Resolution.doc 2 Sttrplus and Sale of Public Utility Property r~ W IJJ ViewPoint Realty 21107 SR 410 · Copyright 1999 Bonney Lake, WA 98390 Commercial Brokers Assodation Phone: (253) 862-5970 All Rights Reserved Fax: (253) 862-5969 CaA Form PS-lA Purchase & Sale Agreement Rev. 9/03 COMMERCIAL & INVESTMENT REAL ESTATE Page 11 of 11 PURCHASE & SALE AGREEMENT [Legal Description] SW 1/4 NWl/4 EXC FDP BAT NW COR OF SD SEC TH S2'57'05W 2778.15FT TO W 1/4 COR OF SD SEC ~ H N89*58'24E 560SF TH N2*57'05E 400FT TO POB TH CONT N2*57'O5E 22OFT TH S89'58'24W 220FT TH TH ~ TO POB TGW & SUBJ TO ESMTS SECT. Escrow to verify and insert Exact Leqal Description here. EXHIBIT B INITIALS: Buyer / ( ''~ Date /~/-~ ~,/~' "'- Seller Date Buyer, Date 5~ Se!ler __ Date CONFIDENTIAL TO: MAYOR Co BOZEMAN AND CITY COUNCIL MEMBERS CITY OF BREMERTON C/O: ROBERT A. LUBOVICH CITY ATTORNEY PURCHASE OF WATERSHED TAX ACCOUNT NO. 0224 012 093 20 0g (38.89 ACmeS) VIEWPOINT REALTY "Where your VIEWPOINT is the most important" November 24, 2004 HAND DELIVERED TO: Mayor C. Bozeman AND: City Council Members C/O: Mr. Roger A. Lubovich ": ~. ~. ~ ,~ City Attorney : '"~'~..~ ~ . : ~ 345 6t~ Street, Suite 600 Bremerton, Washington 98337 RE: Offer to Purchase ~Watershed" property (the Subject Property). Tax Account No. 0224 012 003 20 08. (38.89 +- Acres) Dear Mayor Bozeman, Distinguished Council Members & Mr. Lubovich, Esquire: We have attached our Client's Purchase & Sale Agreement (PSA) for the Subject Property of approximately 38.89+- acres mentioned above and owned by the City of Bremerton. (Excluded from the purchase is the "water tank area & access".) Our Client has preliminarily investigated the Subject Property and would like to offer TWO MILLION NINE HUNDRED THOUSAND DOLLARS ($2,900,000) and enter into an extensive 120 day feasibility study in accordance with the PSA. In good faith after the feasibility study (~20 days); our Client's earnest money of $145,000 would be non-refundable and, Buyer would allow $10,000 increments to be released to the City of Bremerton during each 60 day period as the transaction moves to closing. We, Viewpoint Realty, currently work very closely buying, selling & leasing property for the City of Bonney Lake (Mayor Robert Young) and therefore; we have extended the same courtesy to the City of Bremerton by modifying our raw-land commission from 10% to 4%. Furthermore, we look forward to working together with the City of Bremerton 0~hjs ~ansaction and many others to come. Time is of the essence. esignated Broker Encl: Purchase and Sale Agreement Vacant Land Addendum Purchase & Sale Agreement Note "The Law of Real Estate Agency." - pamphlet. CC: Bealko Inc. T. L. Vander Pool~.Cons__L_,. &~D_ey_.: A_~visor to the Desi~Ln~t_e__d Br__~e_r~: .................... 21107 S R 410 Hwy East I Suite G-2 I Bonney Lake I Washington I 98390 Phone: (253) $62-5970 I FAX: (253) 862-5969 Emaih viewpointrealty@aol.com www.viewpointrealty.com 60 ViewPoint Realty o Copyright 199g 21107 SR 410 Commercial Brokers Asseciafion Bonney Lake, WA 98390 A~ Rights Resetvecl Phone: (253) 862-5970 caA Form PS-lA Fax: (253) 862-5969 Purcflase & Sale Agreement Rev. 9/03 Page 1 of 11 COMMERCIAL & INVESTMENT REAL ESTATE PURCHASE & SALE AGREEMENT Date: November 24~, 2004 The undersigned Buyer, Bealko nc, and/or assi.qnee, agrees to buy and Seller agrees to sell, on the following terms, the commercial real estate and all improvements thereon (collectively, the 'Property") commonly known as Tax Account No. 0224 012 003 20 08 (38.89+- Acres)., however at Buyer sole cost; Buyer shall identify and exclude the '~/Vater Tank Property" ('%q'P") (includinq easement access) which Buyer and Escrow/Title shall identify. Thereafter, Escrow shall obtain Buyer and Seller written approval of the '~rrP" within 90 days of Mutual Acceptance in the City of Bremerton, Kitsap County, Washington, legally described on attached Exhibit A. (Buyer and Seller authorize the Listing Agent or Selling Licensee to insert and/or correct, over their signatures, the legal description of the Property.) 1. PURCHASE PRICE. The total purchase price is TWO MILLION NINE HUNDRED THOUSAND Doltars ($2,900,000), including the earnest money, payable as follows (check only one): [] All cash at closing, including the earnest money, with no financing contingency. ~--~r~ .'~,. .~ ~ ~. ,~ ~ ~ . .° ~ ....... dcccr';bed /n Sccfic~ ~,c ~ Other' 2. EARNEST MONEY. Buyer agrees to deliver the earnest money $1fl5,000 in the form of [] Cash [] Personal check [] Promissory note [] Other: __ If the earnest money is in the form of a promissory note, it shall be due no later than; [] 3 days after mutual acceptance. [] Upon removal of the inspection contingencies in Section 5 below. [] Other:__ The earnest money shall be held by [] Selling Licensee [] Closing Agent. Buyer shall deliver the earnest money no later than: [] days after mutual acceptance. [] Upon removal of the inspection contingencies in Section 5 below. [] Other: Upon removal of the nspection contingencies in Section 5 below: Buyer shall cause TEN THOUSAND DOLLARS ($10,000) to be released to Seller each sixty (60) days in accordance with the attached "Vacant Land Addendum to Commercial Investment Purchase & Sale Aqreement' dated November 24t~, 2004. Selling Licensee may, however, transfer the earnest money to Closing Agent. ~ ~" Date Seller Date iNITIALS:Buyer );~ ~ ~ ~%' ¥; 61 ViewPoint Realty © Copyright 1999 21107 SR 410 Commercial Brokers AssocialJon Bonney Lake, WA 98390 ^, Rights Reserved Phone: (253) 862-5970 c~ Form PS-lA Fax: (253) 862-5969 Purchase & Sale Agreement Rev. 9/03 COMMERCIAL & INVESTMENT REAL ESTATE Page 2 ofll PURCHASE & SALE AGREEMENT If the earnest money is to be held by Selling Licensee and is over $10,000, it shall be deposited to: [] Selling Licensee's pooled trust account (with interest paid to the State Treasurer) [] A separate interest beadng trust account in Selling Licensee's name. The interest, if any, shall be credited at closing to Buyer whose Social Security or taxpayer ID Number is: . If this sale fails to close, whoever is entitled to the earnest money is entitled to interest. Selling Licensee shall deposit any check to be held by Selling Licensee within 3 days after receipt or mutual acceptance, whichever occurs later. Buyer agrees to pay financing and purchase costs incurred by Buyer. If all or part of the earnest money is to be returned to Buyer and any such costs remain unpaid, Selling Licensee or Closing Agent may deduct and pay them therefrom. Unless otherwise provided in this Agreement, the earnest money shall be applicable to the purchase price and shall be non-refundable except where a condition to Buyer's obligation under this Agreement is not satisfied through no fault of Buyer. 3. EXHIBITS AND ADDENDA. The following Exhibits and Addenda are made a part of this Agreement: Exhibit A - Legal Description [] Earnest Money Promissory Note, CBA Form EMN [] Promissory Note, LPB Form No. 28NCBA Form N1-A [] Short Form Deed of Trust, LPB Form No. 20 [] Deed of Trust Rider, CBA Form DTR [] Utility Charges Addendum, CBA Form UA [] FIRPTA Certification, CBA Form 22E [] Assignment and Assumption, CBA Form PS-AS [] Addendum/Amendment, CBA Form PSA [] Back-Up Addendum, CBA Form BU-A [] Vacant Land Addendum, CBA Form VLA [] Other__ [] Other__ 4. FINANCING. ' ~ INITIALS: Buyer r~'~' ~-~ Date f//~ ~/~ ? Seller Date ViewP°int Realt7 © Copyright 1999 21107 SR 410 Comm~c~a~ Brokers AssocialJon Bonney Lake, WA 98390 All Rights Resa~ed Phone: (253) 862-5970 cl~, Form PS-IA Fax: (253) 862-5969 Purchase & Sale Agreement Rev. 9/03 COMMERCIAL & INVESTMENT REAL ESTATE Page 3 of 11 PURCHASE & SALE AGREEMENT '"'"'~'" '~"~ ~ ........ *'~""~'~ '" this Agrcc.,'n,c,".t, '~"y"' o~o** ...... ~' ~"~' ~'"""~ ~" "'" C!csi,",g A~ · ............................................................................ ~,~t. (~ L~ ~,,,~ ~ o~ Prc,m/sccG' Nctc ~d the DUE ~ e ~ ~ ~ ~~ ~rv ~,~ ~ ...... :.. ~'~ *"~ ~*~ cf c~c~, ~ other ~ ~ ...~ .~ ~, ~,,*~*~..~ pr/~ ~p The (Note to Buyer and Selle[ If ~e Pmpe~ ~ cu~ntly used primarily for ~ricultuml purposes, then a no~judicial ~c~sur~ffei~m mm~y is available to Seller only by using a mai es~te contract and is not available with a deed of trust.) d. S~ctio~ 1~11 Lite-Kind Exchange. If either Buyer or Seller intends for this transaction to ~ a pa~ of a S~tion 1031 lik~kind exchange, ~en the other pa~ agrees to c~rate in the ~mp~tion of the lik~kind exchange so long as the ~pemfing pa~ incum no additional liabili~ in doing so, and so ~ng as any expenses (including aEomeys fees and ~sts) incu~ by the ~pera~ng pa~y that are relat~ only to the exchange are paid or reimbu~d to the ~perating pa~ at or pdor to closing. INSPECTIO~ CONTINGENCY. This Agr~ment shall terminate and Buyer shall remive a re. nd of the earnest money unless Buyer gives wd~en noti~ to Seller within 120 days (20 days if not filled in) of mutual ac~p~n~ of this Agr~ment s~ting that Buyer is satisfied, in Buyer's r~nable di~retion, concerning all as~cts of the Propeffy, including wi~out limitation, its physi~l condition; the presence of or absen~ of any hazardous subs~n~s; ~e con~ and leases a~ing ~e prope~; the potential financial ~o~ance of ~e P~pe~; the availabili~ of government p~i~ and approvals; and ~e ~asibil~ of the Prope~ for BuyePs int~nd~ put.se. If such nofi~ is timely gNen, the ins~on ~ntingencies stated in this S~tion 5 shall be deem~ to ~ ~sfl~. a. B~, R~s, L~a~, Agmm~n~. Seller ~all make available ~r inspection by Buyer and i~ agen~ as ~n as ~ibl~ but no later ~an ~n (10) days a~er mutual ~ceptan~ of this ~r~ment ~11 d~men~ available to Seller relating ~ the ownership, o~ration, renovation or development of the Prope~, including without limimt~n: s~tements for real es~te taxes, assessment, and utilities; pro~ management agreement, sewice ~n~a~s, and agreements ~th professionals or consultan~ entered into by the Seller or any pr~es~r in title to the S~ll~r; I~ases of ~nal pm~ or fi~ms; ~ases or other ag~ments rela~ng to ~upancy of ~11 or a poffion of the Prope~ and a schedule of tenants, rents, and deposits; plans, WEr~NO STUO]ES. s~ificafions, permits, appli~tions, dinings, suweys, studies and maintenan~ records; and accounting records and audit repoffs. Buyer shall determine within the contingency ~riod ~ated in ~e pre~ing introductow ~ragmph whe~er it ~shes and is able to assume, as of closing, all of the foregoing leases, ~n~acts, and agreements which have te~s e~ending beyond closing. Buyer shall be ~lely res~nsible for ob~ining any required con~n~ to such assumption. Seller shall transfer the leases, contra~s and agreements as provided in S~tion 17 of~is Agreement. INITIALS: Buyer ? c~. ~ Date /! ,.'~- P'~ ,~/ Seller Date ~uyer Dat~ Se~r Date 63 ViewPoint Real~ © Copyright 199g 21107 SR 410 Commercia~ Brokers Association Bonney Lake, WA 98390 All Rights Reserved Phone: (253) 862-5970 c~A Form PS-lA Fax: (253) 862-5969 Purchase & Sale Agreement Rev ~/03 COMMERCIAL & INVESTMENT REAL ESTATE Page 4o~ PURCHASE & SALE AGREEMENT b. Access. Seller shall permit Buyer and its agents, at Buyer's sole expense and dsk to enter the Property at reasonable times after legal notice to tenants, to conduct inspections concerning the Property and improvements, including without limitation, the structural condition of improvements, hazardous materials (limited to a Phase I audit only), pest infestation, soils conditions, sensitive areas, wetlands, or other matters affecting the feasibility of the Property for Buyer's intended use. Buyer shall schedule any entry onto the Property with Seller in advance. Buyer shall not perform any invasive testing or contact the tenants without obtaining the Seller's prior wdtten consent, which shall not be unreasonably withheld. Buyer shall restore the Property and improvements to the same condition they were in prior to inspection. Buyer agrees to indemnify and defend Seller from all liens, costs, claims, and expenses, including attorneys' and experts' fees, arising from or relating to entry onto or inspection of the Property by Buyer and its agents. This agreement to indemnify and defend Seller shall survive closing. Buyer may continue to enter the Property and interview tenants in accordance with the foregoing terms and conditions after removal or satisfaction of the inspection contingency only for the purpose of re-sele, leasing or to satisfy conditions of financing. 6. TITLE INSURANCE. a. Title Report. Seller authorizes Lender and Listing Agent, Selling Licensee or Closing Agent, at SelleCs expense, to apply for and deliver to Buyer a [] standard [] extended (standard, if not completed) coverage owner's policy of title insurance. If an extended coverage owner's policy is specified, Buyer shall pay the increased costs associated with that policy including the excess premium over that charged for a standard coverage policy, and the cost of any survey required by the title insurer. The title report shall be issued by Land Title Company. b. Permitted Exceptions. Buyer shatl notify Seller of any objectionable matters in the title commitment or any supplemental report within ten (10) days after receipt of such commitment or supplement. This Agreement shall terminate and Buyer shall receive a refund of the earnest money, less any costs advanced or committed for Buyer, unless (a) within ten (10) days of Buyer's notice of such objections, Seller agrees to remove all objectionable provisions, or (b) within fifteen (15) days after Buyer's notice of such objections, Buyer notifies Seller in writing that it waives any objections which Seller does not agree to remove. The closing date shall be extended to the extent necessary to permit time for these notices. Those provisions not objected to or for which Buyer waived its objections shall be referred to collectively as the "Permitted Exceptions." The titJe policy shall contain no exceptions other than the General Exclusions and Exceptions common to such form of policy and the PermittedExceptions. ~)~T~t', .~ H~,.~ ~ !'~J:~L,?,~C~.7~ i~ · '~ ~ "'~ ~'~\~-=-+~i"~ ~ i ~ 7. CLOSING OF SALE. TJnis-sete-~haH--b~e¢- ' .... ~h " *ng~LJ~y-.Land~..'Fitle & --E__=crow.("C:.ln~ing_~'). Buyer and Seller will, immediately on demand, deposit with Closing Agent all instruments and monies required to complete the purchase in accordance with this Agreement. "Closing" shall be deemed to have occurred when all documents are recorded and the sale proceeds are available to Seller. Time is of the essence in the performance of this Agreement. 8. CLOSING COSTS. Seller shall pay the excise tax and premium for the owner's standard coverage title policy. Seller and Buyer shall each pay one-half of the escrow fees. Real and personal property taxes and assessments payable in the year of closing; rents on any existing tenancies; interest; mortgage reserves; utilities; and other operating expenses shall be pm-rated as of closing. Buyer shall pay all costs of financing including the premium for the lender's title policy. Security, cleaning, and any other unearned deposits on tenancies, and remaining mortgage or other reserves shall be assigned to Buyer at closing. The real estate commission is due on closing or upon Seller's default under this Agreement, whichever occurs first, and neither the amount nor due date thereof can be changed without Listing Agent's wdtten consent. a. Unpaid Utility Charges. Buyer and Seller [] WAIVE [] DO NOT WAIVE the right to have the Closing Agent disburse closing funds necessary to satisfy unpaid utility charges affecting the Property pursuant to RCW 60.80. If "do not waive" is checked, then attach CBA Form UA ("Utility Charges" Addendum). If neither box is checked, then the "do not waive" option applies. INITIALS: Buyer ~:'J ~ Date ?/?~ ~/~/ Seller Date Buyer Date Seller Date ViewPoint Realty ©Copyright 1999 ,t--~l~A~'''~ 21107 SR 410 comrne~a~ Stokers Bonney Lake, WA 98390 Afl Rights Res~ed Phone: (253) 862-5970 CBA Form PS*lA Fax: (253) 862-5969 Purchase & SaleAgmement Rev. 9/03 COMMERCIAL & INVESTMENT REAL ESTATE Page 5 of 11 PURCHASE & SALE AGREEMENT 9. POST-CLOSING ADJUSTMENTS, COLLECTIONS, AND PAYMENTS. After closing, Buyer and Seller shall reconcile the actual amount of revenues or liabilities upon receipt or payment thereof to the extent those items were prorated or credited at closing based upon estimates. Any bills or invoices received by Buyer after closing which relate to services rendered or goods delivered to the Seller or the Property pdor to closing shall be paid by Seller upon presentation of such bill or invoice. At Buyer's option, Buyer may pay such bill or invoice and be reimbursed the amount paid plus interest at the rate of 12% per annum beginning fifteen (15) days from the date of Buyer's written demand to Seller for reimbursement until such reimbursement is made. Rents collected from each tenant after closing shall be applied first to rentals due most recently from such tenant for the period after closing, and the balance shall be applied for the benefit of Seller for delinquent rentals owed for a period prior to closing. The amounts applied for the benefit of Seller shall be turned over by Buyer to Seller promptN after receipt. '10. OPERATIONS PRIOR TO CLOSING. Prior to closing, Seller shall continue to operate the Property in the ordinary course of its business and maintain the Property in the same or better condition than as existing on the date of mutual acceptance of this Agreement, but shall not be required to repair material damage from casualty except as otherwise provide in this Agreement. Seller shall not enter into or modify existing rental agreements or leases (except that Seller may modify or terminate residential rental agreements or leases in the ordinary course of its business), service contracts, or other agreements affecting the Property which have terms extending beyond closing without first obtaining Buyer's consent, which shall not be unreasonably withheld. 11. POSSESSION. Buyer shall be entitled to possession, subject to existing tenancies (if any), [] on closing [] __ (on closing, if not completed). '12. SELLER'S REPRESENTATIONS AND WARRANTIES. Seller represents and warrants to Buyer that, to the best of Seller's knowledge, each of the following is true as of the date hereof and shall be true as of closing: la) Seller is authorized to enter into the Agreement, to sell the Property, and to perform its obligations under the Agreement; lb) All books, records, leases, agreements and other items delivered to Buyer pursuant to this Agreement are accurate and complete; lc) The Property and the business conducted thereon comply with all applicable laws, regulations, codes and ordinances; (d) Seller has all certificates of occupancy, permits, and other governmental consents necessary to own and operate the Property for its current use; (e) There is no pending or threatened litigation which would adversely affect the Property or Buyer's ownership thereof after closing; (f) There are no covenants, conditions, restrictions, or contractual obligations of Seller which will adversely affect Buyer's ownership of the Property after closing or prevent Seller from performing its obligations under the Agreement, except as disclosed in the preliminary commitment for title insurance or as otherwise disclosed to Buyer in writing pdor to the end of the inspecting contingency stated in Section 5 above; (g) There is no pending or threatened condemnation or similar proceedings affecting the Property, and except as otherwise disclosed in the preliminary commitment for title insurance as or otherwise disclosed to Buyer in writing prior to dosing, the Property is not within the boundaries of any planned or authorized local improvement district; (h) Seller has paid (except to the extent prorated at closing) all local, state and federal taxes (other than real and personal property taxes and assessments described in Section 8 above) attributable to the period prior to closing which, if not paid, could constitute a lien on Property (including any personal property), or for which Buyer may be held liable after closing; and (i) Seller warrants that there are no pending or threatened notices of violation of building, zoning, or land use codes applicable to the Property; and (j) Seller is not aware of any concealed matedal defects in the Property except: As disclosed by Seller in wrifinq within 30 days after Mutual Acceptance. Seller makes no representations or warranties regarding the Property other than those specified in this Agreement, Buyer otherwise takes the Property "AS IS," and Buyer shall otherwise rely on its own pre-closing inspections and investigations. 13. HAZARDOUS SUBSTANCES. Except as disclosed to or known by Buyer prior to the satisfaction or waiver of the inspection contingency stated in Section 5 above, Seller represents and warrants to Buyer that, to the best of its INITIALS: Buyer ~'/~;t~ /r Date ~ //,~-~',~,? Seller Date Buyer Date Seller Date 65 ViewPoint Realty ~ Copyright 1999 21107 SR 410 Commercial Broke~ Associaiion Bonney Lake, WA 98390 All Rights Reserved Phone: (253) 862-5970 CBA Form PS-~A Fax: (253) 862-5969 purchase & Sale Agreement Rev. 9~3 COMMERCIAL & INVESTMENT REAL ESTATE Page 6 PURCHASE & SALE AGREEMENT knowledge: (i) there are no Hazardous Substances (as defined below) currently located in, on, or under the Property in a manner or quantity that presently violates any Environmental Law (as defined below); (ii) there are no underground storage tanks located on the Property; and (iii) there is no pending or threatened investigation or remedial action by any governmental agency regarding the release of Hazardous Substances or the violation of Environmental Law at the Property. As used herein, the term "Hazardous Substances" shall mean any substance or material now or hereafter defined or regulated as a hazardous substance, hazardous waste, toxic substance, pollutant, or contaminant under any federal, state, or local law, regulation, or ordinance governing any substance that could cause actual or suspected harm to human health or the environment ("Environmental Law"). The term "Hazardous Substances" specifically includes, but is not limited to, petroleum, petroleum by-products, and asbestos. 14. PERSONAl_ PROPERTY. a. This sale includes all right, title and interest of Seller to the following tangible personal property: [] None [] That portion of the personal property located on and used in connection with the Property, which Seller will itemize in an Addendum to be attached to this Agreement within ten (10) days of mutual acceptance (None, if not completed). The value assigned to the personal property shall be the amount agreed upon by the parties and, if they cannot agree, the County-assessed value if available, and if not available, the fair market value determined by an appraiser selected by the Listing Agent and Selling Licensee. Seller warrants title to, but not the condition of, the personal property and shall convey it by bill of sale. Buyer shall pay any sales or use tax arising from the transfer of the personal property. b. In addition to the leases, contracts and agreements assumed by Buyer pursuant to Section 5a above, this sale includes all dght, title and interest of Seller to the following intangible property now or hereafter existing with respect to the Property including without limitation: all rights-of-way, rights of ingress or egress or other interests in, on, or to, any land, highway, street, road, or avenue, open or proposed, in, on, or across, in front of, abutting or adjoining the Property; all dghts to utilities serving the Property; all drawings, plans, specifications and other architectural or engineering work product; all governmental permits, certificates, licenses, authorizations and approvals; all utility, security and other deposits and reserve accounts made as security for the fulfillment of any of Seller's obligations; any name of or telephone numbers for the Property and related trademarks, service marks or trade dress; and guaranties, warranties or other assurances of performance received. 15. CONDEMNATION AND CASUALTY. Buyer may terminate this Agreement and obtain a refund of the earnest money, less any costs advanced or committed for Buyer, if improvements on the Property are destroyed or materially damaged by casualty before closing, or if condemnation proceedings are commenced against all or a portion of the Propen'y before closing. 16. FIRPTA- TAX WITHHOLDING AT CLOSING. Closing Agent is instructed to prepare a certification (CBA or NWMLS Form 22E, or equivalent) that Seller is not a "foreign person" within the meaning of the Foreign Investment in Real Property Tax Act. Seller agrees to sign this certification. If Seller is a foreign person, and this transaction is not otherwise exempt from FIRPTA, Closing Agent is instructed to withhold and pay the required amount to the Internal Revenue Service. 17. CONVEYANCE. Title shall be conveyed by a Statutory Warranty Deed subject only to the Permitted Exceptions. If this Agreement is for conveyance of Seller's vendee's interest in a Real Estate Contract, the Statutory Warranty Deed shall include a contract vendee's assignment sufficient to convey after acquired title. At closing, Seller and Buyer shall execute and deliver to Closing Agent CBA Form No. PS-AS Assignment and Assumption Agreement transferring all leases, contracts and agreements assumed by Buyer pursuant to Section 5a and all intangible property transferred pursuant to Section 14b. 18. NOTICES AND COMPUTATION OF TIME. Unless otherwise specified, any notice required or permitted in, or related to, this Agreement (including revocations of offers and counteroffers) must be in writing. Notices to Seller INITIALS: Buyer ~.~'~-. Date ~l /~ ],/',~ >' Seller Date E~uyer Date Seller Date ViewPoint Realty © Copyright 1999 21107 SR 410 Commercial Brokees Associafi~)n Bonney Lake, WA 98390 All Rights Reserved Phone: (253) 862-5970 c~ Form PS-~A Fax: (253) 862-5969 Purchase & Sale Agreement Rev. 9/03 COMMERCIAL & INVESTMENT REAL ESTATE Page 7 of 11 PURCHASE & SALE AGREEMENT must be signed by as least one Buyer and must be delivered to Seller and Listing Agent. A notice to Seller shall be deemed delivered only when received by Seller, Listing Agent, or the licensed off'me of Listing Agent. Notices to Buyer must be signed by at least one Seller and must be delivered to Buyer and Selling Licensee. A notice to Buyer shall be deemed delivered only when received by Buyer, Selling Licensee, or the licensed office of Selling Licensee. Selling Licensee and Listing Agent have no responsibility to advise of receipt of a notice beyond either phoning the party or causing a copy of the notice to be delivered to the party's address on this Agreement. Buyer and Seller must keep Selling Licensee and Listing Agent advised of their whereabouts to receive prompt notification of receipt of a notice. Unless otherwise specified in this Agreement, any pedod of time in this Agreement shall begin the day after the event starting the period and shall expire at 5:00 p.m. Pacific time of the last calendar day of the specified period of time, unless the last day is a Saturday, Sunday or legal holiday as defined in RCW 1.16.050, in which case the specified period of time shall expire on the next day that is not a Saturday, Sunday or legal holiday. Any specified period of five (5) days or less shall not include Saturdays, Sundays or legal holidays. ~19. AGENCY DISCLOSURE. At the signing of this Agreement, Selling Licensee Viewpoint Realty, Mr. Frank Stratton - Designated Broker (Insert names of Licensee and the Company name as licensed) represented BUYER (Insert Seller, Buyer, both Seller and Buyer or Neither Seller nor Buyer) and the Listing Agent None (Insert names of Licensee and the Company name as licensed) represented Neither Seller nor Buyer (Inser~ Seller, Buyer, both Seller and Buyer or Neither Seller nor Buyer) If Selling Licensee and Listing Agent are different salespersons affiliated with the same Broker, then Seller and Buyer confirm their consent to Broker acting as a dual agent. If Selling Licensee and Listing Agent are the same person representing both parties, then Seller and Buyer confirm their consent to that person and his/her Braker acting as dual agents. If Selling Licensee, Listing Agent, or their Broker are dual agents, then Seller and Buyer consent to Selling Licensee, Listing Agent and their Broker being compensated based on a percentage of the pumhase price or as otherwise disclosed on an attached addendum. Buyer and Seller confirm receipt of the I)aml)hlet entitled "The Law of Real Estate Agency." 20. ASSIGNMENT. Buyer [] may [] may not (may not, if not completed) assign this Agreement, or Buyer's rights hereunder, without Seller's pdor written consent, unless provided otherwise herein. 21. DEFAULT AND ATTORNEY'S FEE. In the event Buyer fails, without legal excuse, to complete the pumhase of the Property, then (check one): [] that portion of the earnest money which does not exceed five percent (5%) of the purchase price shall be kept by Seller as liquidated damages (subject to Seller's obligation to pay certain costs or a commission, if any) as the sole and exclusive remedy available to Seller for such failure; or [] Seller may, at its option, la) keep as liquidated damages all of the earnest money (subject to Seller's obligation to pay certain costs or a commission, if any) as the sole and exclusive remedy available to Seller for such failure, lb) bring suit against Buyer for Seller's actual damages, (c) bdng suit to specifically enforce this Agreement and recover any incidental damages, or (d) pursue any other rights or remedies available at law or equity. INITIALS: Buyer ~/ ~ ~ Date U ~'-~- )/~ ~" Seller Date Buyer Date Seller Date 67 ViewPoint Realty 21107 SR 410 © Copyright 1999 Commemial Brokers Assooafion Bonney Lake, WA 98390 A, eights Reseved Phone: (253) 862-5970 Fax: (253) 862-5969 C~, Form PS-IA Pumflase & Sale Agreement Rev. 9/03 COMMERCIAL & INVESTMENT REAL ESTATE Page 8 of 11 PURCHASE & SALE AGREEMENT If Buyer or Seller institutes suit concerning this Agreement, the prevailing party is entitled to reasonable attorneys' fees and expenses. In the event of thai, the amount of the attorney's fee shall be fixed by the court. The venue of any suit shall be the county in which the Property is located, and this Agreement shall be governed by the laws of the state where the Property is located. 22. MISCELLANEOUS PROVISIONS. a. Complete Agreement. The Agreement and any addenda and exhibits to it state the entire understanding of Buyer and Seller regarding the sale of the Property. There are no verbal or wdtten agreements which modify or affect the Agreement. b. No Merger. The terms of the Agreement shall not merge in the deed or other conveyance instrument transferring the Property to Buyer at closing. The terms of this Agreement shall survive closing. c. Counterpart Signatures. The Agreement may be signed in counterpart, each signed counterpart shall be deemed an original, and all counterparts together shall constitute one and the same agreement. d. Facsimile Transmission. Facsimile transmission of any signed original document, and retransmission of any signed facsimile transmission, shall be the same as delivery of an original. At the request of either party, or the Closing Agent, the parties will confirm facsimile transmitted signatures by signing an odginal document. 23. ACCEPTANCE; COUNTEROFFERS. Seller has until midnight of December 10th, 2004 (if not filled in, the third business day following the last Buyer signature date below) to accept this offer, unless sooner withdrawn, if this offer is not timely accepted, it shall lapse and the earnest money shall be refunded to Buyer. If either party makes a future counteroffer, the other party shall have until 5:00 p.m. on the 1._~5 business day (if not filled in, the second business day) following its receipt to accept the counteroffer, unless sooner withdrawn. If the counteroffer is not timely accepted or countered, this Agreement shall lapse and the earnest money shall be refunded to the Buyer. No acceptance, offer or counteroffer from the Buyer is effective until a signed copy is received by the Seller, the Listing Agent or the licensed office of the Listing Agent. No acceptance, offer or counteroffer from the Seller is effective until a signed copy is received by the Buyer, the Selling Licensee or the licensed office of the Selling Licensee. 24. INFORMATION TRANSFER. In the event this Agreement is terminated, Buyer agrees to deliver to Seller within ten (10) days of Seller's written request copies of all materials received from Seller and any plans, studies, reports, inspections, appraisals, sun/eys, drawings, permits, application or other development work product relating to the Prope~ in Buyer's possession or control as of the date this Agreement is terminated. 25. CONFIDENTIALITY. Until and unless closing has been consummated, Buyer will treat all information obtained in connection with the negotiation and performance of this Agreement as confidential (except for any information that Buyer is required by law to disclose and then only after giving Seller written notice at least three (3) days prior to the disclosure) and will not use or knowingly permit the use of any confidential information in any manner detrimental to Seller. 26. SELLER'S ACCEPTANCE AND BROKERAGE AGREEMENT. Seller agrees to sell the Property on the terms and conditions herein, and further agrees to pay a commission ~,~ '~ tc?~ o,~.,,-, ...... ~.~.~ ~. ~ .... ,~ ....... ~,h ,~ ....... ~ ~ ........................................ u ~ .................. u ...... ,--~., ................ of 4 Y~ of the sales price ,-,,' $ -r~, ..... ;~'";"" °~'°' ~' ..... '-*;"""'~ ~'"~' ..... ~ ~"';"g .A. gC.".t '""'~ TO Sellin~ Licensee. as ~ ..................... ~ -..x .......... u~ ~u ...........Seller ass ns to ~/~'~;"'" '~'"""~ 3~d Selling Licensee a portion of the sales proceeds equal to the commission. If the earnest money is retained as liquidated damages, any costs advanced or committed by ~-~Selling Licensee for Buyer or Seller shall be reimbursed or paid therefrom, and the balance shall be paid one-half to Seller and one-half to £,"~t.;.".~' .~,.7,! ~ Selling Licensee. ~cccrd.",%' to ~h~, ,~,~.; .......... * ~""~ ...... ~'"'~' ............. * In any action by ~ Age,t-er Selling Licensee to enforce this Section, the prevailing party is entitled to reasonable attorneys' fees and expenses. Neither Listing Agent nor Selling Licensee are receiving compensation from more than one party to this INITIALS: Buyer ~ ~ ~-~ Date /~ z: ,~ ,,~ ,/ Seller Date Buyer Date Seller Date ViewPoint Realty 21107 SR 410 ~ Copydght 1999 ~ Bonney Lake, WA 98390 A~ R~ts Reseved Phone: (253) 862-5970 Fax: (253) 862-5969 c~, Form PS-lA COMMERCIAL & INVESTMENT REAL ESTATE Page a o~ 11 PURCHASE & SALE AGREEMENT transaction unless disclosed on an attached addendum, in which case Buyer and Seller consent to such compensation. The Properly described in attached Exhibit A, is commercial mai estate. Notwithstanding Section 26 above, the pages containing this section, the parties' signatures and an attachment describing the Property may be recorded. 27. LISTING AGENT AND SELLING LICENSEE DISCLOSURE. EXCEPT AS OTHERWISE DISCLOSED IN WRITING TO BUYER OR SELLER, THE SELLING LICENSEE, LISTING AGENT, AND BROKERS HAVE NOT MADE ANY REPRESENTATIONS OR WARRANTIES CONCERNING THE LEGAL EFFECT OF THIS AGREEMENT, BUYER'S OR SELLER'S FINANCIAL STRENGTH, OR THE PROPERTY, INCLUDING WITHOUT LIMITATION, THE PROPERTY'S ZONING, COMPLIANCE WITH APPLICABLE LAWS (INCLUDING LAWS REGARDING ACCESSIBILITY FOR DISABLED PERSONS), OR HAZARDOUS MATERIALS. SELLER AND BUYER ARE EACH ADVISED TO SEEK INDEPENDENT LEGAL AND TAX ADVICE ON THESE AND OTHER MATTERS RELATED TO THIS AGREEMENT. INITIALS: Buyer ~'J~ ~-' Date / ! 3 , -~ Y Seller Date Buyer Date Seller Date ViewPoint Realty ~ Copyright ~999 21107 SR 410 Commercial Stokers Association Bonney Lake, WA 98390 A~l Rights Reserved Phone: (253) 862-5970 CBA Form PS-lA Fax: (253) 862-5969 Purch~e & Sale 9/03 Page 10of 11 COMMERCIAL & INVESTMENT REAL ESTATE PURCHASE & SALE AGREEMENT ~/ ~ ~" (CONT, NUED) Buyer - , J~-~ ~ ~~ Dab~ II A ~,/~ ,_ Buyer ~ ~c.~L~- ~- Date , _. Office Phone Fax No. __ Home Phone Print Buyer's Name Bealko Inc Buyer's Address P.O. Box 3266 Federal Way, Wa. 98003 Selling Office Viewpoint R?JtyJ. LC Office Phone 1253) 863,5~970 / Other Phone Fax No. (253) 862-5969 Addre~< ~t tc~7~.~R 4~.H~., East, Suite G-2 Bonney Lake 98390 MLS Office No. 9083 By ~'"-'-,.~,,,._. Print Name Frank Stratton Seller Bw Date Seller MAYOR C. BOZEMAN Date Home Phone Office Phone 360 473-5275 Fax No. 360 473-5278 Print Seller's Name The City of Bremerton Seller's Address 345 6m Street, Suite 600, Bremerton, Wash n.qton 98337 Listing Agent Listing Office Office Phone No. Other Phone Fax No. Address MLS Office No. 28. BUYER'S RECEIPT. Buyer acknowledges receipt of a Seller signed copy of this Agreement, on BUYER BUYER ViewPoint Realty 21107 SR 410 © Copyright 1999 Bonney Lake, WA 98390 All Rights Reserved Phone: (253) 862-5970 Fax: (253) 862-5969 CeA Form PS-lA Purchase & Sale Agreement COMMERCIAL & INVESTMENT REAL ESTATE Page 41 oft1 PURCHASE & SALE AGREEMENT EXHIBIT A [Legal Description] SW 1/4 NWl/4 EXC FDP BAT NW COR OF SD SEC TH S2'57'05W 2778.15FT TO W 1/4 COR OF SD SEC TH N89*58'24E 560SF TH N2*57'05E 400FT TO POB TH CONT N2*57'05E 220FT TH S89*58'24W 220FT TH TH F TO POB TGW & SUBJ TO ESMTS SECT. Escrow to verify and insert Exact Le.qal Description here. INITIALS: Buyer ~,~ ¢: , ~ Date /~ ,''~ ~ ''~' '~ Seller Date Buyer. Data Seller Date 71 ViewPoint Realty 21107 SR 410 ~ Copyright 1999 Bonney Lake, WA 98390 ~) All Rights Reserved Phone: (253) 862-5970 Fax: (253) 862-5969 c~ Form No. ~cMN Earnest Money Prorniss~y Note Rev. 12/99 EARNEST MONEY PROMISSORY NOTE CBA Text Disclaimer: Text deleted by licensee indicated by letters. $ ~45.000 Place: _B. remerton, Washinqton Date: November 24m 2004 FOR VALUE RECEIVED, the undersigned ("Buyer") agrees to pay to the order of The City of Bremerton the sum of ONE HUNDRED FORTY FIVE THOUSAND Dollars ($145,000) as follows: []. days (3 days if not filled in) following mutual acceptance of the Purchase Agreement (as defined below). [] Upon satisfaction or waiver of the inspection contingency stated in the Purchase Agreement. [] Other Payable Jn accordance with the PeA dated November 22, 2004 but no later than upo. Closino. This Note is evidence of the obligation to pay earnest money under the Purchase and Sale .A. greem, ent (throe "Purchase Agreement") between the Buyer and The Cit of Bremerton ("Seller") dated r~ovemDer 24 , 2004 for the property located at: Tax Account No. 0224 012 003 20 08 (38.89+- Acres)., however at Buyer sole cost; Buyer shall identify and exclude the "VVater Tank Property" ("WTP") (includinq easement access) which Buyer and Escr~o.w..~?Je sha identify. Thereafter, Escrow shall ~abi~ua~en tBoU~y_e.r..a~n? Seller.written ap.p. ro..val of !he "W~'. P within 90 days of Mutual Acceptanc,,. Buyer's as well as~o~ny t~i; I~(~en.est money s[rlcuy as above snail constitute default on said Purchase Agreement If this Note shall be placed in the hands of an attorney for collection, or if suit shall be brought to collect any of the balance due on this Note, Buyer promises to pay a reasonable attorney's fee as fixed by the Court, and all court and collection costs. This Note shall bear interest at the rate of twelve percent (12%) per annum after default. ~EALKO INC By: Richard Butko Name/Title: President ViewPoint Realty © Copyright 1999 ,,r.~Tl~/ 21107 SR 410 Commerciar SrcAers Association Bonney Lake, WA 98390 All Rights Reset'ed Phone: (253) 862-5970 CBA Form VIA Fax: (253) 862-5969 Vacant Land Addendum Rev. 12/99 VACANT LAND ADDENDUM TO COMMERCIAL Page 1 of 2 INVESTMENT PURCHASE & SALE AGREEMENT CBA Text Disclaimer: Text deleted by licensee indicated by strike. New tex~ inse~ed by licensee indicated by small capital letters. This Addendum (the "Addendum") is part of the Commercial Investment Purchase and Sale Agreement (the "Agreement") dated November 24~h, 2004 between The City of Bremerton ("Seller") and Bealko Inc., ("Buyer") concerning Tax Account No. 0224 012 003 20 08 however at Buyer sole cost; Buyer shall identify and exclude the "Water Tank Property" ("w'rP") (including easement access) which Buyer and Escrow/Title shall identify. Thereafter, Escrow shall obtain Buyer and Seller written approval of thn "vv'rP" within 90 days of Mutual Acceptance (the "Property"). l.~losing Date. The closing shall be ON OR BEFORE 4.__~5 days (30 days if not filled in) after e~ac~b of the e'veo~s selected below have occurred, but under no circumstances later than November~24'~2006 ~ mm~~a~n of the inspection contingency in Section 5 of ~eement ~ prelimina~ pla~ has been obtain~ for the Prope~ ~ re~rding of ~e final plat ~h~ ...... ~ removal of any govemmen~~s w~ent cons~uction activities from commencing on ~e Prope~ as of ~--'~ ~ Buyer obtains ~ master use pe~it ~ grade and fill perm~ building permit for Buyers i~d development of the Prope~ Extensions. Buyer may e~end the closing date for up to 1~ ~riods of 6~ days each (each an "E~ension Period") upon payment of an e~ension fee of $10,000 for each e~ension Period. Each e~ension ~e shall be paid to ~ Seller ~ closing agent (Seller if not filled in) on or before the staff of ~e E~ension Period. The extension f~s shall be non-refundable except in the event of Seller's default and ~ shall ~ shall not (shall not if not filled in) apply to the purchase price. ~f20 d~ c~cr ~"*"~ ..... * .... ~ -~* ~'~ L~) ~ *~ ~,,y~ ~ rcccc~cb~y s~t~fi~d thct tho .......... fi~, ~,~. ~ .......... u ....... ~.,~ .... ............... , ............. ~Pro~ of cl~ INITIALS: Buyer /Z ~ ¢~. _Date / t ~'% '~ /~:~ F/ _ Seller __ Date 73 ViewPoint Realty ~ Copyright 1~99 21107 SR 410 Commercial Brokers ASSeC~ation Bonney Lake, WA 98390 Ni Rig.s Reserved Phone: (253) 862-5970 CBA Form VL~ Fax: (253) 862-5969 Vacant Land Addendum Rev. 12/99 Peele 2 of 2 VACANT LAND ADDENDUM TO COMMERCIAL INVESTMENT PURCHASE & SALE AGREEMENT (CONTINUED) [] ~ ~.,,..~; ...... ;, ho~ ~ ~ .....'~ for thc Prc~.c.~ty 4. Cooperation. Seller agrees to cooperate with Buyer in obtaining all permJt~ or other governmental approvals necessary or convenient to develop the Property as contemplated by this Agreement, and shall execute all documents Buyer may reasonably require at no cost to Seller, including without limitation, applications for permits or approvals. Buyer agrees to make available at Seller's reasonable request any plat maps, drawings, or applications relating to applications or submittals for the Property made by Buyer to any governmental agency. 5. Buyer's Pm-Closing Development Work. If the Agreement contemplates that Buyer will perform work on the Property pdor to closing, for example, to satisfy conditions of final plat approval, then Buyer's right to entry under Section 5b of the Agreement and Seller's duty of cooperation under Section 4 of this Addendum shall extend to those pre-closing construction and development activities. Any studies, inspections or improvements shall be accomplished at the Buyer's expense. Buyer agrees to indemnify and defend Seller from all liens, costs, claims, and expenses, including attorneys' and experts' fees, arising from or relating to entry onto the Property, by Buyer or its agents. This agreement to indemnify and defend Seller shall survive closing. 6. Seller's Acts. Seller shall not create or permit to be created any lien or encumbrance against any per'don of the Property, except for encumbrances existing on the date of mutual acceptance of this AgreemenL the lien of real property taxes and assessments that are not delinquent, and statutory liens that result from the activities of Buyer in connection with the Property. Seller shall continue to pay when due alt such pdor encumbrances and shall not suffer or permit a default to arise under those prior encumbrances. If Seller fails to timely pay any such tax, assessment or prior encumbrance or if any encumbrance arises against the Property after mutual acceptance of this Agreement, then Buyer may pay all or any part of those taxes, assessments or encumbrances and may deduct amounts so paid from the earnest money. In the event that the Property has been placed in a forestry, agricultural or open space tax classification, Seller agrees to remove the Property from said classification and the escrow agent shall pay any compensating taxes from the proceeds due Seller at closing. 7. Memorandum of Agreement. Upon the request of Buyer, the Seller agrees to execute and record a memorandum identifying the parties, the date of the Agreement and the closing date of the Agreement. 8. Conflict. In the event of any conflict between the terms of this Addendum and the Agreement, this Addendum shall control. iNITiALS: Buyer ~' ~ ~ Date // / ~- ~/~ ~' Seller__ __ Date 74 ViewPoint Realty 21107 SR 410 © Copyright 1999 Bonney Lake, WA 98390 Commercial Brokers Association Phone: (253) 862-5970 A, Rights Rese~ed Fax: (253) 862-5969 CBA Form PSA NWMLS Form No. 34 ADDENDUM/AMENDMENT TO Addendum/Amendment to P & S PURCHASE AND SALE AGREEMENT Rev. ~2~99 CBA Text Disclaimer: Text deleted by licensee ir~icated by strike. Page 1 of 1 New text inset[ed by ffcensee indicated by small capital letters. The following is part of the Purchase and Sale Agreement dated November 24, 2004, Between City of Bremerton ("Seller") And Bealko Inc. ("Buyer") regarding the sale of the Property known as: Tax ID # 02240120032008 Kitsap County IT IS AGREED BETWEEN THE SELLER AND BUYER AS FOLLOWS: 1 ) The Water Tank Property ("WTP") referred to in the PSA shall be: a) Identified, documented and excluded from the Purchase at Sellers written and sole discretion or this transaction shall be terminated before the Inspection Period of 120 days. Such documentation shall providn for an easement access until the sub-division plan is approved then, the easement shall be abandoned and the newly approved and recorded sub-division plans shall provide for street access to the WTP: b) Buyer shall present easement access re.qardinq the WTP documentation for Sellers written approval within 90 days of Mutual Acceptance. 2) PSA - Provision 7. CLOSING OF SALE: a) The first sentence in Provision 7 shall be deleted then, the following shall be inserted: 'This saln shall be closed within forty-five (45) days after the Inspection Period ("closin,q"). b) Escrow and Title shall be handled by Chica~o Title and Escrow not Land Title and Escrow. 3) To clarify the "closinq" (in correlation with the "Extension Period"): the PSA must be closed on or before November 24, 2006 which includes all of the Extension Periods (approximately. a 24 month maximum time frame) 4 Buyer shall provide land apprasial to Seller before closinq. 5) PSA - Provision 23: ACCEPTANCE; COUNTEROFFERS: The Buyer and Seller aqree to extend the Seller acceptance date until midniclht of December 24"h,2004. ALL OTHER TERMS AND CONDITIONS of said Agreement remain u~changed. Buyer _ Date _ Seller Dete 75 Kitsap County Boundary Review Board 614 Division Street, MS-35A · Port Orchard, Washington 98366 · (360) 337-4992 ~ COp~ember 20' 2004 Mr. William M. Palmer William Palmer Consultants P.O. Box 6 Port Orchard, WA 98366 RE: Proposed Annexation of Racus Property Into the City of Bremerton BRB File No. 04-08-0053-W Dear Mr. Palmer: Enclosed please find the document signed by Boundary Review Board Chair Lon Overson at last week's regular meeting, waiving review of the above-referenced annexation pursuant to your request. Thank you for attending the meeting, and please do not hesitate to contact me if I may be of further assistance. Sincerely, Debbie Meyer Clerk of the Board Enclosure BRB Members Kitsap County Boundary Review Board 614 Division Street, MS-35A, Port Orchard, Washington 98366 Phone (360) 337-4992 · Fax (360) 337-7083 Proposed Annexation of Racus Property Into City of Bremerton BRB File No. 04-08-0053-W William M. Palmer, on behalf of the City of Bremerton, filed a Notice of Intention to annex 6.14 acres of land immediately adjacent to the existing city limits of Bremerton. The city has reported that the assessed value for this land is $105,680.00. RCW 36.93.110 provides that: Where an area proposed for annexation is less than ten acres and less than two million dollars in assessed valuation, the chairman of the [boundary] review board may by written statement declare that review by the board is not necessary for the protection of the interest of the various parties, in which case the board shall not review such annexation. After considering this proposed annexation and seeking input from the other members of the board, I have determined that review of this proposed annexation by the Kitsap County Boundary Review Board is not necessary for the protection of the interest of the various parties. Therefore, as the proposed annexation meets the requirements of RCW 36.93.110, the Board will not review the proposed annexation. DATED this 16th day of December, 2004. LON OVERSON, Chair Kitsap County Boundary Review Board From: <JaneStafford@LANDAM.com > To: <citycouncil@ci.bremedon.wa.us> Date: Tue, Dec 21, 2004 1:42 PM Subject: Resolution No. 2949 Dear City Council Members: I am a homeowner in the Pinewood division which abuts the Tracyton watershed property. I am confused as to whywe were not sent written notification of this. Isn't there a formal process that has to be followed including written notification to homeowners abutting the property in question? The only way I found out was from my neighbor. I ADAMANTLY OPPOSE THE SALE OF THE TRACYTON WATERSHED PROPERTY. The privacy, serenity and beauty aside, what about the whole purpose of the watershed property in the first place. We need to keep the property as a watershed to keep the water safe from the pollution and run off that a new housing project would do to the property and water supply. The terrain and stream going through the property need to continue to be protected. Many people in the neighborhoods surrounding the Tracyton watershed property purchased their property because of the watershed property being their back drop. I certainly did. I implore you to deny the sale of the Tracyton watershed property and please do not classify it as surplus property. If the property must be sold, how about offering it to the owners abutting the watershed property and restricting further development, but have the abutting owners actually owning the land? Jane W. Stafford, 250 Sugar Pine Drive, Bremerton, WA 98310, (360) 405-0500 Escrow OfficedLPO LandAmerica Transnation Title 360-337-4007 [CEiVEO CITY COUNCIL OFFICE" / ,1 olo¢ CITY COUNCIL ATTN: Bremerton City Council members This letter is being written due to the concern of the home owners located adjacent to the land proposed for sale, and the building of homes on the land the City of Bremerton purchased from the Tracyton watershed. We as the homeowners have great concern of this proposal for many important reasons that we believe have not been addressed. The land of concern is in East Bremerton located behind the Pinewood Community, North of Sylvan Way. Many of the homeowners in this community bought their homes for the reason that this property provides a beautiful setting in which to raise families, the peace and quite of the wooded area, and not to have neighbors in our backyard. This area also houses a variety of wildlife ranging from Deer, Hawks, Eagles, Raccoons, and many other small animals that will not survive the destruction of another wooded area. I have personally seen eagles and hawks perched atop many of the tall trees in this wooded area, and also have had deer come on to our property. This area also provides the children in the community a place to climb trees, walk the trails, build forts, ride their bikes and use their imagination while playing in the wooded area. These wooded areas are becoming more and more difficult to hang onto for those who wish to stay in the city. The continuing destruction of wooded areas is just another culture taken away from our youth, a place where young kids can go and get away from the pressures in which are thrust upon them everyday. The home owners are also very concerned that our elected Council member never notified us of this proposal, if we had not read the article in the Sun we would have never known of this proposal. We feel as though the City council never took in to count how the people of this community would be affected by this decision. Residents of Ridgetop Court and Pinewood Community: David and Teresa Hall 3558 Ridgetop Ct Scot and Janet Groulik 3556 Ridgetop Ct Martin and Rosalind Bussey 3564 Ridgetop Ct Horace and Dolores Seay 3562 Ridgetop Ct Dion and Kame Towne 3563 Ridgetop Ct