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HomeMy WebLinkAbout01/20/99 AGENDABREMERTON CITY COUNCIL 239 4TH STREET BREMERTON, WA 98337 CITY COUNCIL AGENDA JANUARY 20, 1999 1. CITY COUNCIL STUDY SESSION: 5:00 - 5:30 P.M. A. General Council Business 2. CALL TO ORDER: 5:30 P.M. A. Pledge of Allegiance B. Invocation 3. CONSENT AGENDA Items listed below have been distributed to Council members in advance for study and will be enacted by one motion. If separate discussion is desired on an item, it may be removed from the Consent Agenda and placed on the Regular Agenda at the request of a Council member. A. Minutes of Meeting - December 30, 1998 #AB99-011 B. Minutes of Meeting - January 6, 1999 #AB99-012 4. CLAIMS/CHECK REGISTERS 5. COUNCIL MEMBER REPORTS 6. MAYOR'S REPORT 7. LEGISLATIVE REPORT 8. PUBLIC RECOGNITION -- (Comments Limited to 3 Minutes) 9. NEW BUSINESS A. 1999 CDBG Final Allocation #AB99-013 I ~, B. Bid Award for Naval Avenue Slide Repair #AB99-014 I~ (CONTINUED ON BACK) 10. ORDINANCES A. Ordinance No. 4645 (Second Reading) Authorizing #AB99-008 ,2.,2. the Issue of a $1,250,000 Tax Anticipation Note and Accepting the Purchase Offer of Seafirst Bank B. Ordinance (First Reading) Naming the new SR304 #AB99-015 ~0 Roadway Alignment East of First Street "Charleston Boulevard" 11. PUBLIC HEARING (6:00 P.M. or LATER) A. Public Hearing and Resolution No. 2689, Approving #AB99-016 °o5 a Special Use Permit for Day Care Center for up to 41 Children; Applicant: Emmanuel Apostolic Church; Location: 1023 6th Street Kitsap County Department of Public Works 614 Division Street (MS-27), Por~ Orchard, WA 98366-4686 R.W. Casteel, P.E., Director January 14, 1999 ~x~.o7~-~ Dear John Poppe, City Engineer: Subj:Legislation to set aside prohibited shell fishing areas that have multiple public uses as marine life preserves. Response to DNR resource damage policy. Attached is a letter sent out to our State Legislators for Kitsap ~ounty. This letter is proposing that the prohibited shellfish areas be defined as "preservation areas." These are areas where NPDES permits outfall discharge to marine waters, State Ferry traffic lanes, and marina closure areas. The users of these areas are people who live in the Urban Growth Areas. These people are being penalized by the Department of Natural Resources' policy of collecting "resource damages" for a resource that is not being damaged, which is witnessed by the incredibly high value of the geoducks in those areas. DNR's ability to sell the geoducks is the only thing affected. We are asking that you forward this information to your legislators and provide as much clout as you can muster to see that this issue is addressed in this legislative session. If nothing is done, the penalty, to our scwer ratepayers will be significant. In many cases, in the millions of dollars and additional transportation moneys will be diverted to DNR. We sympathize with the severe monetary squeeze that DNR is experiencing, but suggest that the problem as it relates to school construction funding should not be solved on the backs of our sewer rate payers, but should be addressed statewide. Please pass this information on to your superiors and to your legislators. Thank you for your help. Sincerely, George J. Mason Assistant Director of Public Works Utilities The Open Line 360-337-5777 or 800-825-4940 · FAX 360~37-4867 --printed on recycled paper-- January 1'1, 1999 Addressed to House Representatives & Senate Members: Kitsap County is concerned by the State Department of Natural Resources' policy regarding collection of"resource damages" from water dependent users. DN-R will not issue a renewal or new easement for outfalls, ferry traffic lanes, marinas, or any other subtidal water dependent user without conditioning to receive payment for "resource damages" for geoducks that are in the Federally or State mandated prohibited shellfishing areas associated with these closures. These "damages" or required mitigations will cost our rate and fee payers millions of dollars. The resource that is being charged for is not "damaged" as witness the millions of dollars of healthy geoducks in these areas. This geoduck industry is an- export industry. The money collected from this "damage" fee will not be used to enhance geoduck reproduction or habitat. It will go to support the agency and to the school construction fund. These costs are statewide concerns and should be provided for by statewide taxation not from sewer rate payers, ferry riders, and boaters. In fact, DNR has excluded some outfalls from tiffs proposed charge along the southeast shore of Puget Sound because they can't differentiate outfall closure areas from closures due to non-point source run off. This "policy" so far has effected Hartstene Point, Alderbrook Resort, a nursing home on Bainbridge Island, a combined sewer outfall for Seattle Metro, and now Kitsap County's Kingston Treatment Plant. This piece-meal approach is not productive nor fair. The cost increase for Kingston sewer rate payers will be $15.00 per month just to pay for geoducks. The attached bar graph shows the history of sewer bills and the impact of the geoduck charge. These people live in a designated Urban Growth Area. In fact, most sewer rate payers live in urban growth areas. These proposed penalties mn counter to the purposes of the Growth Management Act. We have attached a letter proposing legislation that will provide protection for the geoducks in these prohibited areas, locations for necessary outfalls, ferry lanes, and marina areas. All of these uses are needed to protect the interests of all the people, and not just the economic interest of one agency. The legislation would prohibk "resource damage" collection in these areas simply because they are prohibited by Federal decree or by concem for the safety of the public. **Please use this information to sponsor or support your legislators to stop this discriminatory taxation** FORMATION OF PRESERVATION AREAS - IN SPECIFIC SUBTIDAL ZONES IN PUGET SOUND Legislation is needed to create subtidat preservation zones in and around the Washin~on State Ferry traffic lanes, Washin~on State Department of Health Shell fishing prohibited zones around permitted treated effluent outfalls and the WDOH Shellfishing prohibited zones around marinas. These preservation zones would be for the purposes of protecting the public health, encouraging economic development, protecting water qualitv, protecting the shellfish and other biota present in these zones, a~d/he prevention of discriminatory taxation by DNa. - DN'R policy is to remove all pebmitted outfalls from Puget Sound based on the misconception that NPDES permits are a license to pollute, that it is economically feasible to apply ail effluent to land in the urban areas served by sewers and the desire to harvest as many Geoducks as possible to make up for the shortfall in DN-R revenues. DNR policy is to collect "resource damages" from all operations that prohibit harvesting of shellfish such a federally mandated closures around ouffalls and marinas and State mandated closures in ferry traffic lanes. This resource damage claim comes from a judicial ruling that DNR could collect because the closures made it impossible to mange the geoduck resource. Dama_es will be assessed to sewer rate payers, Ferry users, Marina users and any other water dependent use that prevents harvest of shellfish. "Damages" amount to millions of dollars based on harvest of all the shellfish and market price and will be assessed to a special group of citizens to satisfy state,vide needs. Harvest of shellfish supports DNR operations and contributions to the School Construction Fund. Use of ouffalls protects public health, supports upland economic development and protects the quality of marine waters through the imposition of Federal Discharge Permits which require regular monitoring and reporting and bioassay testing of the effluent. Ferry traffic closure areas support transportation needs associated with economic development. Marinas support a muitimillion dollar a year marine industry. Assessing damages to some of these could put them out of business. Permitted ouffalls, marinas and ferry operations have no measurable effect on the geoduck resource as witnessed by the large numbers of Geoducks in the prohibited areas and the plentiful variety of life in these areas. These closure areas provide an old ~owth forest of geoducks and other marine biota protected from the ravages of harvest. Creation of these special zones will: 1. Provide special protection for marine organisms in these areas and in particular prevent harvest of old ~bwth species of Geoducks that live wet1 over 100 years. 2. Prevent indirect discriminatory taxation of special classes of people to support Statewide needs. 3. Avoid special penalties to p~ople who live in Urban Growth Areas, thus support G~MA. 4. Support reasonable costs for provision of sewer service and transportation which provides public health protection and supports economic development while protecting the marine envkonment. 5. Prevent transfer of State funds from DOT to DNR without legislative approval or public hearing. In short these special areas will provide for many public benefits and encourage development of transportation and build out of Urban Growth areas while preventing discriminatory taxation of special classes of people. Itistoric and Projected Kitsap County - Monthly Sewer Rates Exantple Impact of DNR Resource Damage Policy or! Sewer Charges $?o.oo $60.00 [] Single Family Rate [] Kingston Single FamilY Rate [] Si 5 Geoduck Surchar. ge $5o.oo $40.00 $30.00 $20.00 $10.00 $0.00 1994 1995 1996 1997 1998 1999 2000 2001 Year AGENDA BILL BREMERTON CITY COUNCIL 1. $_U_D_J_~QT: FOR AGENDA OF: JANUARY 20, 1999 ORIGINATING DEPT: CITY COUNC I L ORIGINATOR: DAVID FARR, PRESIDENT MINUTES OF MEETING -- DECEMBER 30, 1998 DATE SUBMITTED: JANUARY 13, 1999 2. ~: (comment on back 3. ~: if necessary) ENDORSEMENT INFORMATION APPROVED BY COUNCIL PRESIDENT F~ MAYOR __ __ COUNCIL PRESIDENT.~.~.~/-~~~J 4. SUMMARY STATEMENT AND REOUIREMENT FOR COUNCIL ~CTIQN: 8. RECOMMENDATION: 9. RESPONSIBLE OFFICIAL: ENFORCEMENT OFFICIAL: EXPIRATION DATE: REVIEW DATE: 10. NOTICE OF ACTION PULLED TABLED APPROVED DISAPPROVED AMENDED COUNCIL DIRECTIVE: DATE: ~~ TAPE #1590 UNAPPROVED DRAFT CITY COUNCIL MEETING MINUTES DECEMBER 30, 1998 The regular meeting of the City Council of the City of Bremerton was called to order in the City Council Chambers, 239 4th Street, Bremerton, Washington, Wednesday, December 30, 1998, at 5:30 P.M., with Council President David Farr presiding. Council members present were Jim Reed, Carlos Montgomery, Carol Arends, Mike Shepherd, Lon Overson, John Law, Cecil McConnell, and Wayne Olsen. Also present were City Attorney Glenna Malanca and Deputy City Clerk Paula Johnston. The meeting opened with the Pledge of Allegiance led by Council President Farr, and invocation given by Chaplain John Reitz, of Naval Subase Bangor. President Fart made the following announcements: (1) City Council held a Study Session prior to the Council meeting, in the Council Conference room, 5:00 - 5:30 P.M. to discuss general Council business. (2) City Council will hold their next monthly Study Session on Monday, January 04, 1999, in the Council Conference room, 5:30 - 7:45 P.M. to discuss the New Jail; Non-Profit Agency Leases; a Resolution to consider the AT&T and TCI Merger; Construction Project Updates; and a Contract Amendment and Budget Adjustment for Evergreen Park Remediation Project. (3) City Council will hold a Study Session immediately following the City Council meeting on Wednesday, January 6, 1999 in the Council Conference Room to discuss "Proposed Amendments to Bremerton Title 21, Land Use". CONSENT AGENDA None CLAIMS/CHECK REGISTERS Vouchers audited and certified by the auditing officer as required by RCW 42.24.080, and those expense reimbursement claims certified as required by RCW 42.24.090, have been recorded on a listing that had been made available to the Council. #0188 M/S/C/U (Montgomery/Arends) On December 30, 1998, the Council does approve for payment those vouchers included and further described as follows: 226707 through 226845, and EFT 5170 in the amount of $649,186.52; and Retiree Payroll in the amount of $121,181.93 for the period ending December 31, 1998. COUNCIL MEMBER REPORTS Mr. Olsen wished everyone a Happy New Year, and urged no one to drink and drive. Mr. McConnell wished everyone Happy Holidays and Happy New Year, and reminded everyone to drive safe and sober. TAPE #159O City Council Reg. Mtg. Minutes December 30, 1998 Page 2 of 5 Mr. Law announced the next District 3 meeting to be held Tuesday, January 19, 1999. He also wished everyone Happy Holidays. Mr. OYerson was glad to see the rain subside, and hopes mother nature will be kinder in the New Year. He also wished everyone a happy holiday season. Mrs. Arend..s wished everyone a Happy New Year. She also wanted to thank Mr. Sampley for solving the problem of the "freezing" Council Chambers last week...by closing the window! She enjoyed a visit to the Charleston Cinema over the weekend. Mr. Montgomery_ wished everyone a Happy New Year. President Farr joined the Council in wishing everyone a safe and Happy New Year. PUBLIC RECOGNITION Louis Soriano, voiced his concerns about Kitsap Transit, and the problems created due to the lack of signage and access for taxis and busses near the ferry terminal, particularly around the construction site, for elderly and disabled ferry riders. He urged the Council to visit the area to see the problems first hand, and find an immediate solution to this problem. Susan Brown concurred with the previous comments, and also inferred that the City might be breaking federal law when it comes to the lack of handicap access at the ferry terminal. Gordy Byrd also voiced his concerns about a dangerous intersection at the corner of Sheridan & Wheaton Way, and also at 6th & Park. Mike Shepherd arrived at the Council meeting at 5:50 P.M. President Fart asked the Legislative Assistant to contact Richard Hayes at Kitsap Transit to request that he come before Council at next weeks meeting and address the issues and concerns brought up here tonight. 8A - AGREEMENTS WITH KITSAP COUNTY FOR BI(AT SERVICES, #AB98-290 This is the second year of agreements with Kitsap County to provide BKAT services. The Funding Agreement provides the County 21-cent pass-through and the Governmental Services Agreement provides for a payment of $50 per hour for filming county government hearings and other programming. Kathleen McCluskey, Administrative Services Director, stated that both contracts are essentially the same, except for the 21 -cents which is an increase over available funds last year, and are written for one-year, with an added clause for additional years at the election of the Commissioners. The agreements went before the County first, and have TAPE #159O City Council Reg. Mtg. Minutes December 30, 1998 Page 3 of 5 already been approved by them. Since the County participated only part of last year, the Governmental Services Agreement doesn't reflect what she thinks the City will see this year. She predicts a real increase in the governmental programming, and added the City will probably be ready within a year to expand to a second public access channel, which will coincide with the upgrade of the Bremerton cable system. Bruce Stier, Executive Director of BKAT, passed out information on 1997 and 1998 statistics showing the increase and the playback time. He provided a brief report on what has occurred this year, including an increase in the amount of public, educational, and governmental programming. He added that approximately 50,000 households are being reached. Mr. Byrd asked what it costs to tape the City Council meetings. Ms. McCluskey clarified that each cable subscriber is charged 21-cents per month on his or her bill, which is used for the cable access programming. There are only two and-a-half staff members, and the rest of the group is made up from volunteers. The $50.00 per hour is what the City and County governments pay BKAT to televise the governmental programming. Mr. McConnell wanted to clarify that the automatic extension of the contract is the only section that could be changed. Ms, McCluskey stated yes. Mr. Montgomery referred to the additional channel to be added next year, and asked if it would be strictly reserved for governmental programming. Ms. M¢Cluskey stated that it may be proposed to have one channel for government and public/education on the other channel, however, this idea would need to be brought before the Advisory Committee, City Council, and the County Commissioners. #0951 M/S/C/U (Montgomery/Olsen) Motion to approve Funding Agreement with Kitsap County. #0965 M/S/C/U (Montgomery/Olsen) Motion to approve Governmental Services Agreement with Kitsap County. 8B - 1999 AMBULANCE RATES, #AB98-291 Pursuant to the ambulance regulatory ordinance, Council must approve rates charged for 911 Basic Life Support (BLS) aid calls. Both local companies, Olympic and Bremerton, have submitted requests for rate increases for 911 BLS calls to be effective January 1, 1999. Clerk staff has surveyed regional ambulance companies for comparable rates. All surveyed companies have raised their rates since 1997 for BLS and the army of products and services they provide. Kathleen McCluskey, Administrative Services Director, stated that per the Bremerton Municipal Code, staff is only required to review the rates proposed, as compared to TAPE #1590 City Council Reg. Mtg. Minutes December 30, 1998 Page 4 of 5 other comparable rates. This was done, and the information was provided in the Agenda Packet. The rates reflect a 5% increase over a two year period. Staff recommends approval. Mr, Byrd supported the rate increase. Roy M¢lnnis referred to the chart showing the "1999 Rate Increase Proposal" on page 24 of the Agenda Packet, and asked what was meant by "Wait Time". Kimberly A. Doyle, of Bremerton Ambulance, gave an example of transporting a patient for radiation treatment, then waiting for that patient while they are at their appointment and then transporting them back to the facility they came from. This can save the patient from having two transporting fees. This fee is not usually charged on 911 calls. She explained it is less expensive for the patient, and still allows ambulance companies to pay the employee and the cost for running the ambulance. Mr. Montgomery_ and Mr. Overson questioned the justification for the rate increase. It was felt that a study on what an appropriate rate should be for providing this service was needed, and how closely these proposed rates meet that cost, rather than simply comparable rates of other cities. Mr, Olden pointed out for the benefit of the public, that the BLS basic rate from the two ambulance companies in Bremerton is $242.55; with a comparison rate from American Medical Response of $316.00. Mr. McCon.ne!l asked who did the comparisons. He also questioned why there are two companies. Paula Johnston, Deputy City Clerk, stated the report shows a balanced comparison of companies, type of service, and base rate charges. She assured Council the report is a comparison of "apples to apples". Mr, William Little_iohn, President of Olympic Ambulance, stated that they have been coming to the City for rate approvals for the past 20 years, and this was the first time there has been such a large turnover of Council members. He provided some history of an Ambulance Review Committee used in the past, which he believed, was helpful in explaining the issues. He also pointed out that this item was brought to the two Council Committees, and he would have been happy to answer any questions at that time. He explained the companies are in negotiations right now to increase employee wages, and gave examples of new expenses anticipated in the coming year. Mr. Law suggested that the companies take the time to educate the Council, and show why the rates should increase, rather than use a comparison chart. Mr. Reed wondered why Council was not this frugal a few weeks ago when water and sewer rates were raised 3%... It amazed him that no questions were asked then, but scrutinizing this private employers request for an increase. He fully understands the high cost of running a business, and pointed out that a patient's insurance company pays most bills anyway. .5 TAPE #159O City Council Reg. Mtg. Minutes December 30, 1998 Page 5 of 5 President Farr questioned if the rates that are in effect now, stay in effect after the first of the year? If this rate increase fails, he asked if staff could work with the contractors and bring this issue back before Committees again. MS. McCluskey explained that the only requirement in the BMC is that the ambulance companies bring the proposals to staff before December 1 st, which they did. There is no time-line in which the Council must act on the request. If it is denied, they will certainly work with the companies, and get back to Council. #2150 M/S/F (Montgomery/McConnell) Motion to not approve the proposed rate increases for 1999. Vote on motion: In Favor: Montgomery, Farr Opposed: Overson, Shepherd, Arends, Reed Olsen, McConnell, Law Motion failed. #2180 M/S/C (Overson/Reed) Motion to approve the proposed rate increases by Olympic and Bremerton Ambulance Companies for 1999. Vote on motion: In Favor: Shepherd, Arends, Reed, Olsen, Law, Overson Opposed: Montgomery, McConnell, Farr Motion carried. President Fart invited fellow Council members to take a walk down to the Ferry Terminal to see first hand some of the issues and concerns raised earlier tonight during Public Recognition. With no further business, meeting adjourned at 6:35 P.M. Paula Johnston, Deputy City Clerk DAVID FARR, Council President City of Bremerton P J/DF/Is cc: Normal Distribution File Vault AGENDA BILL BREMERTON CITY COUNCIL 1. SUBJECT: FOR AGENDA OF: JANUARY 20, 1999 ORIGINATING DEPT: CITY COUNCI l ORIGINATOR: MIKE SHEPHERD, PRESIDEh MINUTES OF MEETING -- JANUARY 6, 1999 DATE SUBMITTED: JANUARY 11, 1999 2. ~: (comment on back 3. ~: if necessary) ENDORSEMENT INFORMATION APPROVED BY COUNCIL PRESID~E~T FOR.~U~~L~: MAYOR COUNCIL PRESIDENT/~~~"~~ ~. s~~ ST~T~,~,~T ~ ~OUI~~ ~O~ CO~C~L ~C~IO~: 8. RECOMMENDATION: 9. RESPONSIBLE OFFICIAL: ENFORCEMENT OFFICIAL: EXPIRATION DATE: REVIEW DATE: 10. NOTICE OF ACTION PULLED TABLED APPROVED DISAPPROVED COUNCIL DIRECTIVE: DATE: 11. AGENDA BILL NO: q~ - O1~_ TAPE #1591 -' UNAPPROVED DRAFT CITY COUNCIL MEETING MINUTES JANUARY 6, 1999 The regular meeting of the City Council of the City of Bremerton was called to order in the City Council Chambers, 239 4th Street, Bremerton, Washington, Wednesday, January 6, 1999, at 5:30 P.M., with Council President David Fart presiding. Council members present were Jim Reed, Carlos Montgomery, Carol Arends, Mike Shepherd, Lon Overson, John Law, Cecil McConnell, and Wayne Olsen. Also present were City Attorney Glenna Malanca and Deputy City Clerk Paula Johnston. The meeting opened with the Pledge of Allegiance led by Council President Farr, and invocation given by Reverend Cleveland Williams of the Ebenezer A.M.E. Church. ELECTION OF CITY COUNCIL OFFICERS President Farr opened nominations for City Council President/Mayor Pro Tempore: Mr. Reed nominated Mike Shepherd. Mr. Overson nominated Cecil McConnell. President Farr closed the nominations. VOTE: Mike. Shepherd - 5 Votes (Farr, Shepherd, Reed, Montgomery, Arends) VOTE: Cecil McConnell - 4 Votes (Olsen, McConnell, Law, Overson) Mike Shepherd was elected City Council President/Mayor Pro Tempore. The meeting was turned over to new Council President Mike Shepherd. President Shepherd opened nominations for City Council Vice-President: Mr. Farr nominated Carol Arends. Mr. Law nominated Wayne Olsen. Mr. Olsen declined. President Shepherd closed the nominations. VOTE: Carol Arends- 9 Votes (Unanimous) Carol Arends was elected City Council Vice-President. President Shepherd made the following announcements: (1) City Council held a Study Session prior to the Council meeting to discuss general Council business. (2) City Council will hold a Study Session to discuss "Proposed Amendments to Bremerton Title 21 Land Use" immediately following the City Council meeting. (3) City Council will hold a Study Session to discuss "Bremerton Code of Ethics" on Wednesday, January 13, 1999, immediately following the City Council meeting. CONSENT AGENDA A. Minutes of Meeting - December 9, 1998 #AB99-001 B. Minutes of Meeting - December 16, 1998 #AB99-002 #0001 M/S/C/U (McConnell/Montgomery) Motion to approve Consent Agenda as presented. TAPES #1591 City Council Reg. Mtg. Minutes January 6, 1999 Page 2 of 4 CLAIMS/CHECK REGISTERS Vouchers audited and certified by the auditing officer as required by RCW 42.24.050, and those expense reimbursement claims certified as required by RCW 42.24.090, have been recorded on a listing that had been made available to the Council. #0030 M/S/C/U (Montgomery/Farr) On January 6, 1999, the Council does approve for payment those vouchers included and further described as follows: Regular Payroll for the period ending December 31, 1998 in the amount of $951,381.87. COUNCIL MEMBER REPORTS Mr. M¢Connell thanked Mr. Fart for serving two years as Council President, and congratulated newly elected President Shepherd and Vice-President Arends. Mr. Law also congratulated the newly elected President and Vice-President. He also announced the next District 3 meeting to be held Tuesday, January 19, 1999, 7:00 P.M., at the Senior Center located at 13t~& Nipsic Avenue. Citizens will have an opportunity to meet Acting Police Chief Rob Forbes; hear a brief presentation on the concept for the Manette Study; followed by an opportunity to discuss questions and concerns with their Councilman. Mr. Overson was happy to announce that Richard Hayes, Director of Kitsap Transit, was available at the Council meeting tonight to address one of the biggest concerns downtown right now -- the development of the Bremerton Transportation Center. Mr. Farr congratulated newly elected President Mike Shepherd and Vice President Carol Arends. He also thanked Carlos Montgomery for his service the past year as Vice President. Mrs, Arends congratulated President Mike Shepherd, and thanked the Council for their support. She urged drivers to turn on their headlights now that the shorter, dark winter days are here. Mr. Montgomery congratulated all those nominated and elected. Mr. Reed congratulated newly elected President Shepherd and stated it was a pleasure serving under Past President Farr. President Shepherd announced the next District 5 meeting to be held Thursday, January 21, 1999 at 6:30 P.M. at the Memorial Lutheran Church located at 10th & Veneta, Municipal Court Judge James N. Docter will be available to discuss Probation and the new Home Detention Program. He announced that this Friday is the 50t' anniversary of the Kitsap Historical Society, and new exhibits will be available. He discussed his recent trip to Medford, Oregon, and noted that the City is dealing with some of the same issues as Bremerton. MAYORS REPORT Mayor Horton urged the public to take steps to promote fire safety in their homes in TAPES #1591 City Council Reg. Mtg. Minutes January 6, 1999 Page 3 of 4 light of recent house fires in the City and County, such as making sure there is working fire and smoke detectors in the home. For an entertaining evening, she urged the public to support the Bremerton High School basketball teams, both men and women. Mayor Horton read the following Proclamation: Monday, January 18, 1999 as Dr. Martin Luther King, Jr. Day. Reverend Cleveland Williams of Ebenezer African Methodist Ebenezer Church received the Proclamation. Rev. Williams accepted the Proclamation, and thanked the Mayor. He invited the public to the Annual Celebration Program in celebration of Dr. Martin Luther King, Jr. Day to be held Monday, January 18, 1999, at 11:00 A.M. at the Kitsap Pavilion. Mr. Olsen left the meeting at 6:10 P.M. Richard Hayes., Executive Director with Kitsap Transit, gave a presentation on "Pedestrian Improvements", including signage, at the ferry dock and new Transportation Center. He stated that this would be a constant improvement process. He also provided an example of a new sign being used to provide information regarding buses, taxis, auto-pickup, and handicap accessibility. Mrs. Arends asked if this information could be coordinated with the taxi companies. She stated that a problem exists for people new to the area, and not aware of all this information. Mr. Farr asked if a temporary covered shelter could be provided in the interim, while the permanent shelter is being built. Mr. Law asked for an update on handicap accessibility. Louis Soriano thanked Mr. Hayes for the presentation, but did not believe that enough has been done. He still had concerns about the unique and difficult problems that face the elderly and disabled. Sue Brown asked for further clarification regarding wheelchair access. Mr. Hayes stated that a 1-800 number would soon be available, as well as purchase of an airport-style accessible cart. PUBLIC RECOGNITION Reverend Williams showed an example of a poster advertising the Annual Celebration Program for Martin Luther King, Jr. Day. He also thanked all the volunteers who assisted in serving approximately 170 people Christmas dinner, and helping to pass out a new toy for each child in attendance. He also invited the Council members to participate in the MLK Choir. Roy Mclnnis gave an example of an incident defused in Tacoma recently between a police officer and a citizen in the process of being arrested. Insights on efforts being made in Tacoma, such as a minister on-call each night to help defuse various incidents. He felt it was important to have the local ministers involved in more community activities. Mr. Law provided information on a "duty chaplain" currently available and used by the City of Bremerton. Gordy Byrd warned the public about a bogus service where a phone call is made offering to haul off "hazardous" material for a fee. 10 TAPES #1591 City Council Reg. Mtg. Minutes January 6, 1999 Page 4 of 4 9A - APPOINTMENT OF SUSAN L. BELL TO THE PARKS AND RECREATION COMMISSION, #AB99-003 There is a vacancy on the Parks and Recreation Commission. It is recommended Susan L. Bell be appointed to fill the vacancy. Mayor Horton gave a brief description of the experience and interests of Ms. Bell. Public comment - none. #2455 M/S/C/U (Arends/Montgomery) Motion to confirm the appointment of Susan L. Bell to the Parks and Recreation Commission. Susan Bell thanked the Council for their support. 10A-RESOLUTION NO. 2686 REQUESTING ASSIGNMENT OF SUPER FERRY KALEETEN TO SERVICE IN BREMERTON, #AB99-004 Request assignment of Super Ferry Kaleeten t o service in Bremerton. Mr. Byrd asked how quickly the service would start. President Shepherd stated that the next step in this process is to send the Resolution to the State for consideration. Jack Arends stated this was an excellent ferry, and offered his services in writing a letter of support. #2740 M/S/C/U (Montgomery/Reed) Motion to approve Resolution No. 2686. With no further business, meeting adjourned at 7:00 P.M. Paula Johnston, Deputy City Clerk ..:': . .;>.--. I~if~E SHEPPIERD, Council President City of Bremerton P J/MS/Is cc: Normal Distribution File Vault AGENDA BILL BREMERTON CITY COUNCIL 1. SUBJECT: FOR AGENDA OF: January 20, 1999 1999 CDBG Final Allocation ORIGINATING DEPT: Neighborllood Dev. . ORIGINATOR: Marylyn Waibel k/~&~-~04~ ~ DATE SUBMITTED: January 14, 1999 2. CLEARANCES: 3. EXHIBITS; Development Director ~~,,~-~ Allocation Spreadsheet Operauons Comm,tt..~~~.~'~ ~ ENDORSEMENT ~._~'- INFORMATION APPROVED BY COUNCIL PRESIDENT FOR SUBMITTAL: ~ -- ~ .....~. MAYOR~--~ '¢~ ~//~ [COUNCIL PR~. SIDENT~~~ 4.SUMMARY STATEMENT AND ~QUI~MENT ~OR COUNCIL ACTION: The Ci~ of Breme~on has r~eived nofificahon ~at i~ acm~ en~flement for 1999 CDBG is $580,~.~. We esfimat~ ~d ~located $550,~.~, ~eret~re we have an additional $30,~.~. Smffrecommends $6,~.~ go to DCD fBr ~e M~e~e PI~, ~,5~.~ go to ~e P~ Play~ound Express, $5,~.~ go to ~blic Works fBr Traffic C~ming, ~d $14,5~.~ go to DCD for Code EnlBrcement. Also, we have an additional $6,526.12 un~nt ~om 1997 capitol project. S~ff recommends ~at ~e $6,526.12 go to DCD tBr Code Enforcement. Finally, we recommend re-allocating $8,973.88 from ~e DCD Hous~g ~ograms to DCD Code Enforcement allowing ~e request to be ~lly ~nded at $30,~.~. We received over our estimate in loan repaymenm dmng 1998, ~erefore ~is change will not negatively effect our hous~g programs. 8. ~COMMENDATION: Authorize approval of staff recommendations for final 1999 CDBG allocation. 9. RESPONSIBLE OFFICIAL- Administrative Analyst ENFORCEMENT OFFICIAL: Administrative Analyst EXPIRATION DATE: REVIEW DATE: 10. NOTICE QF ACTION PULLED__ TABLED APPROVED DISAPPROVED COUNCIL DIRECTIVE; DATE: 11. AGENDA BILL NO.: qq -0/.3 2. CLEARANCE COMMENTS: 5. IMPACT OF NON-PASSAGE: Will not be able to complete 1999 CDBG process. 6. IMPACT ON STAFFI.NG, BUDGETS, FACILITIES, EQUIPMENT OR OTHER RESOURCES: None 7. RESEARCH SOURCES: z~ ~o oo ~ o oo~~°°° ............... q~88~ooooooooooo°°°°°°°°°°° <0 ~ ~ ~ o z m z m ~ ~ 0~ o<o ~ ~< ~ ~=~ ~ ~o_zz~ n~W WW 0 f- I-.."-~ I,-- I~ h- I-. 03 (,0 (D ..J ~ ~ <<~ ~"'o <<~ 0 ~ < ~o ~ -~, ~ oo~_~ <.~ ~ < ¥,~> _ - o_~ ~z~:= =Z~<z,,, zz~: ,,,zzzz R'"o~ a. zzzzz~9 o oi~ ~ o:~.'-'~- s o t- 0:. =. ~o~o~o ~o~,..~__ ---~ oooo ~:~-o 13. m.nm~ ~W o ~o~ o o~ ~ ~o~ o ~ ooooo ~ AGENDA BILL BREMERTON CITY COUNCIL 1. SUBJECT: NAVAL AVENUE FOR AGENDA OF: January 20, 1999 SLIDE REPAIR - BID AWARD ORIGINATING DEPT: Public Works & Utils ORIGINATOR: Randy Witt, City Eng. DATE SUBMITTED: January 5, 1999 2. CLEARANCES: (Comment on back if necessary) 3. EXItlBITS: ~->6d ~ ~\ 1. Location Map ~-~y~o~f ,lyblic 'v~fi '; & !rltilities 2. Bid Tabulation Ci~ ~_'~ ~ Pur~hasine ~di ~or - C~Fiscal & B, udge_.~Committe~ Council Operations Committee ENDORSEMENT/I~" INFORMATION [] APPROVED BY COUNCIL PRESIDE~tT FOR, SUBMITTAL: 4. SUMMARY STATEMENT AND REOUIREMENT FOR COUNCIL ACTION: Bids were opened for the Naval Avenue Slide Repair Project on December 21, 1998. This is a Federal Emergency Management Administration (FEMA) funded project to repair an unstable slope that occurred during a 1997 winter storm. Fourteen bids for this project were received. The lowest responsive bid came from Olalla Hills Excavating, Inc., Olalla WA for $101,793.78. The engineer's estimate for this project was $108,404. The action before the City Council is approval of a contract with Olalla Hills Excavating, Inc for the Naval Avenue Slide Repair Project. 5. RECOMMENDATION: The City Council approve a contract for $101,793.78 with Olalla Hills Excavating, Inc. for the Naval Avenue Slide Repair Project and authorize the Mayor to execute the same. 9. RESPONSIBLE OFFICIAL: Director Pub Wks & Util ENFORCEMENT OFFICIAL: Director Pub Wks & Util EXPIRATION DATE: REVIEW DATE: 10. NOTICE OF ACTION PULLED [] TABLED [] APPROVED [] DISAPPROVED [] AMENDED [1 COUNCIL DIRECTIVE; qq-ol4 (OVER) 11. AGENDA BILL NO.: 2. CLEARANCE COMMENTS: 3. SUMMARY STATEMENT AND REQUIREMENT FOR COUNCIL ACTION - Continuation 5. IMPACT ON NON-PASSAGE: Funding from FEMA will be lost and repairs to the hillside and damaged roadway will not be affected. Possible further movement of the unstable slope could damage the property below. 6. IMPACT ON STAFFING. BUDGETS, FACILITIES. EQUIPMENT AND OTHER RESOURCES: Staffing: 30 staffhours for construction administration and inspection. - Budget: No impact on City budget, funding from FEMA Facilities/Equipment: No impact. 7. RESEARCH SOURCES: APPROXIMATE PROJECT CONSTRUCTION AREA CITY OF BREMERTON BID TABULATION BIDTrrLE: I~J'~--,J,~J2 /~-~LO"~L~~'~r OPENEDBY DA'~. OPENED: ~ '7..- 7_~ -cI ~ TIME OPENED: RECORDED BY I~O BIDDER aOND aECD ITEM 1 ITEM 2 ITEM 3 ITEM 4 ITEM 5' NET BID TAX TOTAL ., ,; , ,~ :'j',~ .... ,,,~,,, ,., ,. , , ,, , ~,..;,, , ,',,,. .... ,.,., l SUMMARY! TOTAL BID~ COMMENTS CITY OF BREMERTON BID TABULATION BID TITLE: /~ra ¥ o~ ~ ~[ [~L '[~:~1'~' OPENED BY DATE OPENED: J Z - 2. ~ .-- q'~ TIME OPENED: RECORDED BY BiO BIDDER REC'D ITEM 1 ITEM 2 ITEM 3 ITEM 4 ITEM 5 NET BID TAX TOTAL '" '" '" i ' '1 "' " SUMMARY TOTAL BID COMMENTS L~ 5TAI?. OF W'ASI~ilNG']'ON MILITARY DEPAR'f'M Eh,~T EMERGENCY MANAGEMENT DiVJSION MS: ~,~-20 B~ilding 20 Phone: (~2) S12-7000 ~ FAX: ~253~ 512..72~ Mr. Allison Duke III Assistant Fire Chief City of Bremerton 239 4th Street Bremerton, Washington 98337 RE: State No MD-97-7431-031 Disaster No. 1172-DR.WA FEMA No. 035-06925 DSR No. 71626 Dear Mr. Duke: This letter serves as our concurrence with tne recommended se!action of the Olalla Hills for the bid award to repair the Naval fi. venue Slide p;'oject und,~.r Damage Survey Reports (DSR) 71626. The bid tab is approved in the amount of $101,79500 for DSR 71626. Please monitor this contract carefuily. As ar~ improveo project additional funding for this project is not available. If any change orders develop as the ". ' ,- · ~.roje.,t is completed, ney will require prior approval by t,he state and FEMA if you have any questions, please do -*.~,~ '~. -~ .... ~es~at.= to contact me at (253) 512-7083 Since.,'ei.y / /~Jeanette I_omax, GEM State Public Assistaf:ce Coordinator f AGENDA BILL BREMERTON CITY COUNCIL January 13, 1999 II/ 1. SUBJECT: ORDINANCE NO. 7'~ ¥'_~ FOR AGENDA OF: January 20, 1999 ,.,~ ORIGINATING DEPT: tre~~\ AUTHORIZING THE ISSUE OF A $1,250,000 TAX ORIGINATOR: Ri~_Hanna~,.-~..~ ANTICIPATION NOTE AND ACCEPTING THE DATE SUBMITTED: January 4, 1999 ~ PURCHASE OFFER OF SEAFIRST BANK 2. CLEARANCES: Comment of back if necessary) 3. EXHIBITS: Dir. Admin. Services .,~'~.,~ Proposed Ordinance Fiscal and Budget Comr~.~,~~ ~Cx'f,v',~~$h Flow Projection Note Purchase Offer (at Council meeting) ENDORSEMENTS ~ INFORMATION APPROVED BY COUNCIL PRESIDENT FOR/SUBMI~L: .. 4. SUMMARY STATEMENT AND REQUIREMENT FOR COUNCIL ACTION: As indicated in the attached documents, the City's General Fund will operate in a deficit cash position through most of the year without some form of cash flow financing. Analysis indicates that issuance of a Tax Anticipation Note, or TAN is the most economical way of financing this cash flow need. 8. RECOMMENDATION: Motion to approve on first reading the Ordinance authorizing the issue of a Tax Anticipation Note and accepting the purchase offer of Seafirst Bank. Motion to pass on second reading Ordinance No. ~ ¢'~'~authodzing the issue of a Tax Anticipation Note and accepting the purchase offer of Seafirst Bank. 9. RESPONSIBLE OFFICIAL: Treasurer ENFORCEMENT OFFICIAL: Mayor EXPIRATION DATE: January 31,2000 REVIEW DATE: N/A 10. NOTICE OF ACTION P U LLE D TAB LED APP ROVE D D ISAP P ROVED AM I=NDEI..~ ~ j~l~ COUNCIL DIRECTIVE: 2. CLEARANCE COMMENTS: 5. IMPACT ON NON-PASSAGE: The City's General Fund will operate for most of the year with a negative cash balance which is contrary to statute. 6. IMPACT ON STAFFING~ BUDGETS~ FAClLITIES~ EQUIPMENT OR OTHER RESOURCES: Included in the 1999 - 2000 Budget. 7. RESEARCH SOURCES: Cash flow projections. Bond counsel. Negotiations with underwriting bank. CITY OF BREMERTON, WASHINGTON ORDINANCE NO. 4645 AN ORDINANCE of the City of Bremerton Washington relating to the incurrence of indebtedness; providing for the sale and issuance of $1,250,000 principal amount tax anticipation notes, 1999, to pay City expenses pending for the receipt of general City taxes; providing for the date, denominations, form, terms, registration privileges, maturity, interest rates and covenants of the notes; and providing for the sale and delivery of such notes to NationsBanc Montgomery Securities LLC WHEREAS, the City Council of the City of Bremerton (the "City") finds that the periodic collections of sales, excise and general ad valorem taxes and other revenue in 1999 will not be sufficient to meet necessary City expenses as they are incurred in 1999, and WHEREAS, the City Council of the City deems it to be in the best interest of the City that the City borrow money and issue and sell a short-term obligation in the form of tax anticipation notes pursuant to chapter 39.50 RCW for the purpose of financing such expenses pending receipt of taxes and other revenue collected by the City; and WHEREAS, the incurrence of such indebtedness by the City will not cause the total indebtedness of the City to be incurred without the assent of the voters of the City to exceed the limitations set forth in Chapter 39.36 RCW; and WHEREAS, NationsBanc Montgomery Securities LLC (the "Purchaser") has offered, by way of the Purchase Agreement (the "Purchase Agreement"), to purchase such limited tax anticipation notes upon the terms and conditions hereinafter set forth; NOW, THEREFORE, THE CITY OF BREMERTON DOES ORDAIN AS FOLLOWS: Section 1. Finding, Purpose and Description of Notes. The City authorizes the sale and issuance of its "Tax Anticipation Notes, 1999" (the "Notes") for the purpose of financing City expenses pending receipt of taxes and other revenue collected by the City and to pay certain "incidental costs and costs related to the sale and issuance" (as defined in RCW 39.46.070) of the Notes. The Notes shall be in the aggregate principal amount of $1,250,000; shall be dated February 1, 1999; shall mature on January 31, 2000; shall bear interest (computed on the basis of a 360-day year of twelve 30-day months) from their date at the rate of 3.25% per annum, payable at maturity. The Notes shall be issued in fully registered form as to both principal and interest; shall be in the denomination of $50,000 each or any integral multiple thereof; shall be numbered separately in such manner and with any additional designation as the fiscal agencies of the State of Washington in Seattle, Washington, and New York, New York (collectively, the "Registrar"), deem necessary for purposes of identification. If any Note is not paid upon proper presentment at its maturity date, the City shall have the obligation to pay interest at the same rate from and after such maturity date until such Note, both principal and interest, is paid in full. The Notes shall be negotiable instruments to the extent provided by RCW 62A.8-102 and RCW 62A. 8-105. On the date of issue of the Notes, all Notes maturing in the same maturity year shall be issued in the form of a single certificate, which certificate shall be registered in the name of The Depository Trust Company or any successor thereto engaged to operate a book-entry system for recording the beneficial ownership of the Notes, as Custodian (the 2 "Custodian"), or its nominee, and delivered to the Custodian. The Custodian shall hold each such Note certificate in fully immobilized form for the benefit of the beneficial owners of the Notes (the "Beneficial Owners") pursuant to the Blanket Issuer Letter of Representations, dated November 19, 1997, between the City and the Custodian (the "Letter of Representations"), until the earliest to occur of either (1) the date of maturity of the Notes evidenced by such certificate, at which time the Custodian shall surrender such certificate to the Registrar for payment of the principal of and interest on such Notes coming due on such date, and the cancellation thereof; (2) the fifth business day following the date of receipt by the Registrar of the City's request to terminate the book- entry system of registering the beneficial ownership of the Notes (the "Book-Entry Termination Date"); or (3) the date the City determines to utilize a new Custodian for the Notes, at which time the old Custodian shall (provided the City is not then in default of any payment then due on the outstanding Notes) surrender the immobilized certificates to the Registrar for transfer to the new Custodian and cancellation as herein provided. For so long as any outstanding Notes are registered in the name of the Custodian or its nominee and held by the Custodian in fully immobilized form as described in this Section 1, the rights of the Beneficial Owners shall be evidenced solely by an electronic and/or manual entry made from time to time on the records established and maintained by the Custodian in accordance with the Letter of Representations, and no certiftcates evidencing such Notes shall be issued and registered in the name of any Beneficial Owner or such Beneficial Owner's nominee. The City may terminate the "book-entry" system of registering ownership of the Notes at any time (provided the City is not then in default of any payment then due on the outstanding Notes) by delivering to the Registrar: (a) a written request that it issue and deliver Note certificates to each Beneficial Owner or such Beneficial Owner's nominee on the Book-Entry Termination Date; (b) a list identifying the Beneficial Owners as to both name and address; and (¢) a supply of Note certificates, if necessary for such purpose. Upon surrender to the Registrar of the immobilized certificates evidencing all of the then outstanding Notes, the Registrar shall issue and deliver new certificates to each Beneficial Owner or such Beneficial Owner's duly appointed agent, naming such Beneficial Owner or such Beneficial Owner's nominee as the Owner thereof. Such certificates may be in any integral multiple of $50,000. Following such issuance, the Owners of such Notes may transfer and exchange such Notes in accordance with Section 9 hereof. Neither the City nor the Registrar shall have at any time any responsibility or liability to any Beneficial Owner of any Notes or to any other person for any error, omission, action or failure to act on the part of the Custodian with respect to payment, when due, to the Beneficial Owner of the principal and interest on the Notes, proper recording of beneficial ownership of Notes, proper transfers of such beneficial ownership, or any notices to Beneficial Owners or any other matter pertaining to the Notes. Section 2. Place~ Manner and Medium of Payment. Both the principal of and interest on the Notes shall be payable in lawful money of the United States of America. Prior to the Book-Entry Termination Date, the principal and interest on the Notes shall be paid by the Registrar to the Custodian as the Owner (hereinat~er defined) thereof, for the benefit of the Beneficial Owners thereof, in accordance with the Letter of Representations. From and after the Book-Entry Termination Date, principal of and interest on the Notes shall be paid to the persons who are named as the registered owners of the Notes (the "Owners") on the registration books for the Notes (the "Note Register") maintained by the Registrar only upon presentation and surrender of such Owners' Notes upon maturity, at the principal corporate trust office of either Registrar, at the option of the Owners. Section 3. No Redemption; Open Market Purchase. The Notes shall not be subject to redemption prior to maturity. The City reserves the right to purchase any or all of the Notes on the open market at any time and at any price. All Notes purchased by the City shall be surrendered to the Registrar for cancellation. Section 4. Debt Limit Not Exceeded. The City finds and covenants that the Notes are issued within all constitutional and statutory debt limitations presently applicable to the City. Section 5. Pledge of Full Faith, Credit and Resources. The Notes are limited tax general obligations of the City. The City hereby irrevocably covenants to include in its budgets and to make annual levies of taxes upon all property within the City subject to taxation without a vote in amounts which, together with any other money legally available therefor, shall be sufficient to pay the principal and interest on the Notes as the same shall become due. The City hereby irrevocably pledges its full faith, credit and resources to the annual levy and collection of such taxes and for the prompt payment of such principal and interest. The City hereby irrevocably covenants that the annual tax provided for herein to be levied for the payment of the principal of and interest on the Notes shall be within and as a part of the tax levy permitted the City without a vote of the people and that a sufficient portion of each such annual tax levy to be made so long as the Notes are outstanding, together with any other money legally available therefor, shall be and is hereby set aside, pledged and appropriated for the payment of the principal of and interest on the Notes as the same shall become due. Section 6. Form of Notes. The Notes shall be typewritten, printed or lithographed on good bond paper in a form consistent with this ordinance and Washington law. Section 7. Execution of Notes. The Notes shall be signed on behalf of the City with the facsimile or manual signatures of the Mayor and the City Clerk, and shall have the seal of the city impressed or a facsimile thereof imprinted thereon. In case either or both of the officers who shall have executed any Note shall cease to be such officer or officers of the City before the Note so signed shall have been authenticated or delivered by the Registrar or issued by the City, such Note nevertheless may be authenticated, delivered and issued and upon such authentication, delivery and issuance, shall be as binding upon the City as though those who signed the same had continued to be such officers of the City. Any Note also may be signed and attested on behalf of the City by such persons as at the actual date of execution of such Note shall be the proper officers of the City although at the original date of such Note such persons were not such officers of the City. Section 8. Authentication and Delivery of Notes by Registrar. The Registrar are authorized and directed, on behalf of the City, to authenticate and deliver Notes initially issued or transferred or exchanged in accordance with the provisions of such Notes and this ordinance. Only such Notes as shall bear thereon a "Certificate of Authentication" manually executed by an authorized signatory of the Registrar shall be valid or obligatory for any purpose or entitled to the benefits of this ordinance. Such Certificate of Authentication shall be conclusive evidence that the Notes so authenticated have been duly executed, authenticated and delivered hereunder and are entitled to the benefits of this ordinance. The Registrar shall be responsible for its representations contained in the Certificate of Authentication on the Notes. Section 9. Registration; Transfer and Exchange. The Registrar shall keep, or cause to be kept, the Note Register at its principal corporate trust office. The City and the Registrar, each in its discretion, may deem and treat the Owner of each Note as the absolute owner thereof for all purposes, and neither the City nor the Registrar shall be affected by any notice to the contrary. Payment of any such Note shall be made only as described in Section 2 hereof, but such registration may be transferred as herein provided. All such payments made as provided in Section 2 hereof shall be valid and shall satisfy and discharge the liability of the City upon such Note to the extent of the amount or amounts so paid. The registered ownership of any Note may be transferred. Prior to the Book- Entry Termination Date, the beneficial ownership of the Notes may only be transferred on the records established and maintained by the Custodian. On and after the Book-Entry 7 Termination Date, no transfer of any Note shall be valid unless it is surrendered at any principal corporate trust office of the Registrar, with the assignment form appearing on such Note duly executed by the Owner or such Owner's duly authorized agent, in a manner satisfactory to the Registrar. Upon such surrender, the Registrar shall cancel the surrendered Note and shall authenticate and deliver, without charge to the Owner or transferee therefor (other than any governmental fees or taxes payable on account of such transfer), a new Note or Notes (at the option of the new Owner), of the same maturity and interest rate and for the same aggregate principal amount, in any authorized denomination, naming as Owner the person or persons listed as the assignee on the assignment form appearing on the surrendered Note, in exchange for such surrendered and cancelled Note. On and after the Book-Entry Termination Date, any Note may be surrendered at the principal corporate trust office of the Registrar and exchanged, without charge, for an equal aggregate principal amount of Notes, in any authorized denomination. The Registrar shall not be obligated to transfer or exchange any Note during the 15 days preceding the maturity date. The Registrar may become the Owner of any Note with the same rights it would have if it were not a Registrar and, to the extent permitted by law, may act as depository for and permit any of its officers or directors to act as a member of, or in any other capacity with respect to, any committee formed to protect the fights of the Owners of the Notes. The City covenants that, until all Notes shall have been surrendered and cancelled, it will maintain a system of recording the ownership of each Note that complies with the provisions of the Internal Revenue Code of 1986, as amended (the "Code"). Section 10. Mutilated, Lost, Stolen or Destroyed Notes. If any Note becomes mutilated, lost, stolen or destroyed, the Kegistrar may authenticate and deliver a new Note of the same maturity and interest rate and of like tenor and effect in substitution therefor, all in accordance with law. If such mutilated, lost, stolen or destroyed Note has matured, the City at its option, may pay the same without the surrender thereof. However, no such substitution or payment shall be made unless and until the applicant shall furnish (a) evidence satisfactory to the Registrar of the destruction or loss of the original Note and of the ownership thereof, and (b) such additional security, indemnity or evidence as may be required by or on behalf of the City. No substitute Note shall be furnished unless the applicant shall reimburse the City and the Registrar for their respective expenses in the furnishing thereofi Any such substitute Note so furnished shall be equally and proportionately entitled to the security of this ordinance with all other Notes issued hereunder. Section 11. Defeasance. If money and/or "Government Obligations" (as such obligations are defined in Chapter 39.53 RCW, as now in existence or hereafter amended) maturing at such times(s) and bearing such interest to be earned thereon (without any reinvestment thereof) as will provide a series of payments which shall be sufficient, together with any money initially deposited, to provide for the payment of the principal of and interest on all or a portion of the Notes, when due in accordance with their terms in accordance with a refunding plan adopted by the City, are set aside in a special fund (hereinafter called the "trust account") to effect such payment and are 9 pledged irrevocably for the purpose ofeffecting such payment, then no further payments need be made into the Note Fund for the payment of the principal of and the interest on such Notes, the Owners thereof shall cease to be entitled to any lien, benefit or security of this ordinance except for the right to receive the money and the principal and interest proceeds on the obligations set aside in the trust account, and such Notes shall no longer be deemed to be outstanding hereunder. Section 12. Sale of the Notes. The Purchaser has presented the Purchase Agreement to the City pursuant to which the Purchaser has offered to purchase the Notes, under the terms and conditions provided in the Purchase Agreement, which written Purchase Agreement is on file with the City Clerk and is incorporated herein by this reference. The City Council finds that entering into the Purchase Agreement is in the City's best interest and therefore accepts the offer contained in the Purchase Agreement and authorizes the execution of the Purchase Agreement by City officials. The Notes will be prepared at City expense and will be delivered to the Purchaser in accordance with the terms of the Purchase Agreement with the approving legal opinion of the City's bond counsel relative to the issuance of the Notes printed on each Note or attached thereto. Bond counsel has not been engaged to participate in the preparation or review of, or express any opinion concerning the completeness or accuracy of the official statement or other disclosure documentation used in connection with the offer or sale of the Notes by any person, and bond counsel's opinion shall so state. Bond counsel has not been retained to monitor, and shall not be responsible for monitoring, the City's compliance with any federal law or regulations to maintain the tax-exempt status of the interest on the Notes. 10 Section 13. Delivery of Notes; Temporary Notes. The proper City officials are authorized and directed to execute and/or approve, as appropriate, all documents, including but not limited to, the final Official Statement pertaining to the Notes, and to do everything necessary for the preparation and delivery of a transcript of proceedings pertaining to the Notes, and the printing, execution and prompt delivery of the Notes to the Purchaser and for the proper application and use of the proceeds of the sale thereof. If definitive Notes are not ready for delivery by the date established for closing (the "Closing"), the City Treasurer, upon the approval of the Purchaser, may cause to be issued and delivered to the Purchaser one or more temporary Notes with appropriate omissions, changes and additions. Any temporary Note or Notes shall be entitled and subject to the same benefits and provisions of this ordinance with respect to the payment, security and obligation thereof as definitive Notes authorized hereby. Such temporary Note or Notes shall be exchangeable without cost to the Owners thereof for definitive Notes when the latter are ready for delivery. Section 14. Application of Note Proceeds. The accrued interest on the Notes received by the City upon the sale of the Notes, if any, shall be deposited into the General Fund and shall be applied to the payment of interest coming due on the Notes. The principal proceeds of the Notes shall be deposited in the General Fund of the City and used solely for the purpose of paying the cash flow deficits in the City's General Fund resulting from budgeted expenditures, and any interest received from the deposit or investment of such proceeds shall be applied and used solely for such purposes. Section 15. Permitted Financing of Cumulative Cash Flow Deficit. Based upon the reasonably expected amounts of sales, excise and general ad valorem property taxes 11 and other revenue to be collected in 1999 (including investment proceeds of the Notes) and that are expected to be available to make General Fund expenditures in 1999 (computed by treating a reasonably working capital reserve in an amount not exceeding 5% of the total General Fund expenditures in the prior fiscal year as not being available to make those expenditures), the City Council finds that the principal amount of the Notes does not exceed the maximum anticipated "cumulative cash flow deficit" (as defined by Section 148 of the Code, and applicable Treasury Regulations thereunder) expected to occur in the City's General Fund during 1999 and that is to be financed with the proceeds of the Notes. Section 16. Tax-Exemption Covenants. The City covenants that it will not take or permit to be taken on its behalf any action that would adversely affect the exclusion of the interest on the Notes from gross income for purposes of federal income taxation, and will take or require to be taken such acts as may be permitted by Washington law and as may from time to time be required under applicable law to continue the exclusion of the interest on the Notes from gross income for purposes of federal income taxation. Without limiting the generality of the foregoing, the City will not invest or make or permit any use of the proceeds of the Notes or of its other money at any time during the term of the Notes which would cause the Notes to be "arbitrage bonds" within the meaning of Section 148 of the Code. The Notes are intended to qualify for the $5,000,000 small governmental issuer exception to the arbitrage rebate requirement, set forth in the Code. The City covenants that, if the City issues more than $5 million in tax-exempt bonds in the calendar year 1999 and all the proceeds of the Notes have not been spent within six months from the 12 date of issuance of the Notes, it will calculate or cause to be calculated, and shall rebate to the United States, all earnings from the investment of Note proceeds that are in excess of the amount that would have been earned had the yield on such investments been equal to the yield on the Notes, plus income derived from such excess earnings, to the extent and in the manner required by Section 148 of the Code. The City has not been notified of any listing or proposed listing by the Internal Revenue Service to the effect that the City is a bond issuer the arbitrage certifications of which may not be relied upon. The City will take no actions and will make no use of the proceeds of the Notes or any other funds held under this ordinance which would cause any Note to be treated as a "private activity bond" (as defined in Section 141 (b) of the Code) subject to treatment under said Section 141 (b) as an obligation not described in Section 103(a) of the Code, unless the tax exemption thereof is not affected. The City hereby designates the Notes as "qualified tax-exempt obligations" for purposes of Section 265 of the Code (relating to the deduction by financial institutions of the interest incurred to carry tax-exempt debt), and authorizes and directs the proper City officials to execute and deliver all documents necessary to evidence such designation to any and all interested parties. The City further covenants not to issue more than $10,000,000 of such "qualified tax-exempt obligations" during 1999. Section 17. Preliminary_ Official Statement Declaration. The City has been provided with copies of a preliminary official statement dated January 12, 1999 (the "Preliminary Official Statement"), prepared in connection with the sale of the Notes. For the sole purpose of the Purchaser's compliance with Securities and Exchange 13 Commission Rule 15c2-12(b)(1), the City "deems final" the Preliminary Official Statement, as of its date, except for the omission of information on offering prices, interest rates, selling compensation, delivery dates, ratings, other terms of the Notes dependent on such matters. Section 18. Undertaking to Provide Continuing Disclosure. This section constitutes the City's written undertaking for the benefit of the Owners and the Beneficial Owners of the Notes required by subsection (d)(2)(ii) of Rule 15c2-12 (the "Rule") of the United States Securities and Exchange Commission (the "SEC"). The City hereby agrees to provide or cause to be provided upon request to any person or at least annually to the State Information Depository ("SID"), if one is created: (a) financial statements prepared in accordance with the generally accepted accounting principles applicable to governmental units, as such principles may be changed from time to time and as permitted by State law; which statements will not be audited, except that if and when audited financial statements are otherwise prepared and available to the City, they will be provided; and (b) other operating data that may be prepared by the City (the "Financial Information"). In its provision of such Financial Information, the City may cross-reference to any "final official statement" (as defined in the Rule) available from the Municipal Securities Rulemaking Board (the "MSRB") or any other documents theretofore provided to each then existing nationally recognized municipal securities information repository designated by the SEC ("NRMSIR") or the SID, if one is created. 14 The City further agrees to provide or cause to be provided, in a timely manner, to the SID, if one is created, and to either the MSRB or each then existing NRMSIR, notice of any of the following events with respect to the Notes, if material: 1. Principal and interest payment delinquencies; 2. Non-payment related defaults; 3. Unscheduled draws on debt service reserves reflecting financial difficulties; 4. Unscheduled draws on credit enhancements reflecting financial difficulties; 5. Substitution of credit or liquidity providers, or their failure to perform; 6. Adverse tax opinions or events affecting the tax-exempt status of the Notes; 7. Modifications to rights of the Owners of the Notes; 8. Optional redemptions of the Notes; 9. Defeasances of the Notes; 10. Release, substitution or sale of property securing repayment of the Notes; and 11. Rating changes. After the issuance of the Notes, so long as the interests of the Owners or Beneficial Owners of the Notes will not be materially impaired thereby, as determined by a party unaffiliated with the City (including, without limitation, a trustee for the Owners, nationally recognized bond counsel or other counsel familiar with the federal securities 15 law), or pursuant to a favorable "no-action letter" issued by the SEC, this Section 18 may only be amended in connection with any change in legal requirements, change in law, or change in the identity, nature or status of the obligated person, or type of business conducted, and only in such a manner that the undertaking of the City, as so amended, would have complied with the requirements of the Rule at the time of the primary offering, at~er taking into account any amendments or interpretations of the Rule, as well as any change in circumstances. The City's obligations to provide Financial Information and notices of certain events shall terminate without amendment upon the defeasance, prior redemption or payment in full of all of the then outstanding Notes. This Section 18 or any provision hereof, shall be null and void if the City (i) obtains an opinion of nationally recognized bond counsel or other counsel familiar with the federal securities laws to the effect that those portions of the Rule which require this Section 18 or any such provision are invalid, have been repealed retroactively or otherwise do not apply to the City; and (ii) notifies and provides the SID, if any, and either the MSRB or each then existing NRMSIR with copies of such opinion. The right of each Owner and Beneficial Owner of Notes to enforce the provisions of this Section 18 shall be limited to the right to obtain specific enforcement of the City's obligations under this Section 18, and any failure by the City to comply with the provisions of this undertaking shall not be a default with respect to the Notes under this ordinance. 16 The City Treasurer is authorized and directed to take such further action on behalf of the City as may be necessary, appropriate or convenient to carry out the requirements of this Section 18. Section 19. Contract; Severability. The covenants contained in this ordinance shall constitute a contract between the City and the Owners of each and every Note. The City unconditionally covenants that it will keep and perform all of the covenants of the Notes and this ordinance. If any one or more of the provisions of this ordinance shall be declared unconstitutional or invalid for any reason, such decision shall not affect the validity of the remaining provisions of this ordinance or the Notes, and this ordinance and the Notes shall be construed and enforced as if such unconstitutional or invalid provision had not been contained herein. Section 20. Effective Date. This ordinance shall take effect and be in full force ten days a~er passage and publication of an approved summary, consisting of the title. APPROVED by the City Council of the City of Bremerton, Washington, this 13th day of January, 1999. PASSED by the City Council of the City of Bremerton, Washington, this 20th day of January, 1999. MIKE SHEPHERD, Council President APPROVED this ~ day of January, 1999. LYNN HORTON, Mayor 17 ATTEST: Kathleen McCluskey, City Clerk APPROVED AS TO FORM: By. Judith Andrews, Bond Counsel PUBLISHED: EFFECTIVE DATE: ORDINANCE NO. 4645 18 CITY OF BREMERTON ~ 999 CASH FLOW PROJECTION Thousands 2OOOI ! 1500 ........................................................................... 1000 500 0 -500 -1000 .................. -1500 ~c ~A, ,~. UA. A,. UA¥ ,U, ,U, AU~ S~, OCT ,OV ~C I ~ PROJECTION I C. .CIAL STATEMENT DATED JANUARY21, BOOK-ENTRY ONLY NEW ISSUE NEGOTIATED RATING: Not Applied For In the ol3inion of Bond Counsel, as of the Date of l$:~ue, and assuming the Ciiy fulfills its covenant to comply with certain requirements of the internal Revenue Code of 1986, as amended {the "Code") that must be met subsequent to the issuance of the Notes: interest on the Notes is excluded from gross income for federal income tax purposes, and is not an item of tax preference for purposes of determining the alCemative minimum tax on individuals and corporations; and the are "qualified lax-exempt obligations" for purposes of the partial interest expense deduction available under Section 265 of the Code. However, interest on the Notes is included in the computation of other taxes, including without limitation the alternative minimum tax on corporations, and may be subject lo other collateral tax consequences. See "TAX EXEMPTION" and "OTHER TAX CONSEQUENCES" heroin. CITY OF BREMERTON, WASHINGTON $1,250,000 ANTICIPATION NOTES, 1999 DATED: February 1, 1999 DUE: January 31, 2000 The City's Tax Anticipation Notes, 1999 (the "Notes"), are issued in fully registered form, and will be fully registered in the name of Cede & Co., as Note owner and nominee for The Depository Trust Company ("DTC"), New York, New York. DTC will act as securities depository for the Notes. The Notes will be initially issued in book-entry form only in the principal amount of $50,000 or any integral multiple thereof. Purchasers will not receive certificates representing their interest in the Notes purchased. The Notes bear interest payable at maturity. The principal of and interest on the Notes are payable by either fiscal agency of the State of Washington, currently The Bank of New York, New York, New York and Wells Fargo Bank, National Association, Seattle, Washington (the "Fiscal Agent~ or "Registrar"). For so long as the Notes remain in a "book- entry only" transfer system, the Fiscal Agent will make such payments only to DTC, which will in turn remit such principal and interest to the DTC participants for subsequent disbursement to Beneficial Owners of the Notes as described herein under the caption "Book-Entry Only System." MATURITY Due Amount Rate Yield or Price January 31,2000 $1,250,000 3.25% 100 The Notes will not be subject to redemption prior to their stated maturity. The Notes are limited tax general obligations of the City. The City irrevocably covenants that, unless the principal of and interest on the Notes are paid from other sources, so long as the Notes are outstanding, the Cibj shall make annual levies of taxes upon all property within the City subject to taxation without a vote in amounts sufficient, together with any other money legally available therefor, to pay such principal and interest as the same shall become due. The City has irrevocably pledged its full faith, credit and resources to the annual levy and collection of such taxes and for the prompt payment of such principal and interest. See "SECURITY" herein. The City has designated the Notes as "qualified tax-exempt obligations" under the Internal Revenue Code of 1996, as amended, for banks, thrift institutions and other financial institutions. See "TAX EXEMPTION" and "OTHER FEDERAL TAX CONSEQUENCES" herein. The Notes are offered by the Underwriter when, as, and if issued, subject to the approving legal opinion of Gottlieb, Fisher & Andrews, PLLC, Bond Counsel, Seattle, Washington, a copy of which opinion will be delivered with the Notes. The Notes in definitive book-entry form will be ready for delivery through the facilities of DTC in New York, New York, on or around February 1, 1999. This cover page contains certain information for quick reference only. It is not a summary of this issue. Investors must read the entire Official Statement to obtain information essential to making an informed investment decision. Representations Neither the City nor the Underwriter has authorized any dealer, broker, salesperson or other perso_n to give any information or make any representation other than those made in this Official Statement, and, if given or made, such other information or representations must not be relied upon as having been authorized by the City or the Underwriter. This Official Statement does not constitute an offer to sell, nor shall there be any sale of the Notes by any person in any jurisdiction in which it is unlawful for such person to make such a sale. The information contained in this Official Statement has been obtained from City Officials and other sources believed to be reliable. Neither a representation, warranty nor guarantee is made by the Underwriter as to the accuracy or completeness of any information in this Official Statement and nothing contained in this Official Statement is or shall be relied upon as a promise or representation by the Underwriter. The delivery of this Official Statement does not imply that the information contained herein is correct as of any time subsequent to the date of the Official Statement as shown on the cover page. Disclosure Statement The City will deliver to the Underwriter at the time of delivery of the Notes a signed statement substantially to the effect that this Official Statement, as of its date and as of the date of the Notes, neither contains any untrue statement of a material fact nor omits to state any material fact necessary to make the statements therein, in light of the circumstances under which they were made, not misleading in any material respect and that there has not been any material adverse change in the normal operations or financial condition of the City nor, to the best of the City's knowledge, in the general economy of the City since the date of the final Official Statement. Secondary Market It has been the practice of the Underwriter to maintain a secondary market in municipal securities which it sells. The Underwriter intends to engage in secondary market trading of the Notes, subject to applicable securities laws. The Underwriter, however, is neither obligated to engage in secondary trading nor to repurchase any of the Notes at the request of the registered owners thereof and no assurance can be given that a secondary market for the Notes will be available. In connection with the offering of the Notes, the Underwriter may over-allot or effect transactions that stabilize or maintain the market price of the Notes at a level above that which might otherwise prevail in the open market. Such stabilizing, if'commenced, may be discontinued at any time. CITY OF BREMERTON Kitsap County, Washington 239 Fourth Street Bremerton, Washington 98337 (360) 478-5290 MAYOR Term Expires December 31 Lynn Horton 2001 CITY COUNCIL Mike Shepherd Chairperson 2001 Wayne Olsen Member 2001 John Law Member 2001 Carol Arends Member 2001 Cecil McConnell '~ Member 1999 Carlos Montgomery Member .1999 David Farr Member 1999 Lon Overson Member 1999 Jim Reed Member 2001 APPOINTED CITY OFFICIALS Richard Hanna Treasurer Kathleen McC1uskey Administrative Services Director/City Clerk Glenna Malanca Attorney BOND COUNSEL Gottlieb, Fisher & Andrews, PLLC Seattle, Washington U N DERWRITER NationsBanc Montgomery Securities LLC Seattle, Washington ii TABLE OF CONTENTS ..... Page In~'oduction ........................................................................................................................................ ! Description of the Notes ........................................................................................................ ; ............ ! Authorization ....................................................................................................................... ~ .............. 4 Security ............................................................................................................................................... 4 Purpose ............................................................................................................................................... 4 Note Fund ........................................................................................................................................... 4 Failure to Redeem the Notes .............................................................................................................. 4 Debt Payment Record ......................................................................................................................... 5 Future Financing ............................................................................................................... : ................. 5 Assessed Valuation Determination. .......................................... : ......................................................... 5 Tax Collection Procedure ................................................................................................................... 5 Authorization of Debt ......................................................................................................................... 6 General Obligation Indebtedness ....................................................................................................... 6 Limits on Amount of General Obligation Indebtedness. .................................................................... 6 Authorization of Short-Term Debt ..................................................................................................... 7 Taxing Powers and Limitations .......................................................................................................... 7 Auditing of City Finances .................................................................................................................. 8 Authorized Investments, ................................................................................................... : ................. 8 Net Direct Debt and Estimated Net Overlapping General Obligation Debt ...................................... 10 Bonded Debt Ratios of the City...i ................................................................................... : .................. I0 Statutory Debt Limit Calculation ....................................................................................................... 11 Ad Valorem Tax Record of the City ................................................................................................. 12 Ad Valorem Property Tax Rates in the City ...................................................................................... 12 Comparative Statement of General Fund Revenues and Expenditures .............................................. 13 Contingency Reserve Fund Year-End Balances ................................................................................ 13 General Fund Budget .......................................................................................................................... 14 Schedule of General Obligation Bond Debt Service for the City ........................................................ 15 City Profile ......................................................................................................................................... 15 General and Economic Information ................................................................................................... 17 Preservation of Tax Exemption .......................................................................................................... 23 Conflicts of Interest ............................................................................................................ ~ ............... 23 Tax Exemption ................................................................................................................................... 23 Other Tax Consequences .................................................................................................................... 24 Absence of Material Litigation. .......................................................................................................... 24 Approval of Bond Counsel ................................................................................................................. 25 Continuing Disclosure ........................................................................................................................ 25 Underwriting ...................................................................................................................................... 26 Concluding Statement ........................................................................................................................ 26 Form of Legal Opinion .......................................................................................................... Appendix A iii OFFICIAL STATEMENT _ CITY OF BREMERTON, WASHINGTON $1,250,000 TAX ANTICIPATION NOTES, 1999 INTRODUCTION The City of Bremerton, Washington (the "City"), a municipal corporation duly organized and existing under and by virtue of the laws of the State of Washin~on, furnishes this Official Statement in connection with the-offering of $1,250,000 principal mount of Tax Anticipation Notes, 1999 (the '~Notes"). This Official Statement provides information concerning the City and the Notes. DESCRIPTION OF THE NOTES Principal Amount, Date, Interest Rate, and Maturity The Notes will be issued in the principal mount of $1,250,000 and will be dated and bear interest from February 1, 1999 until their stated maturity. The Notes will mature on January 31, 2000, and will bear interest, payable at maturity, at the rate of 3.25% per annum. Interest on the Notes will be computed on the basis of a 360-day year of twelve 30-day months. Optional Redemption The City has not reserved the right to redeem the Notes prior to maturity. Paying Agent Principal of and interest on the Notes will be payable by either State fiscal agency (the "Fiscal Agent" or "Registrar") in New York, New York, or Seattle, Washington, currently The Bank of New York and Wells Fargo Bank, National Association (or such other fiscal agency or agencies as the City Treasurer may from time to time designate). So long as Cede & Co. is the registered owner of the Notes, principal of and interest on the Notes are payable by wire transfer by the Registrar to DTC, which, in mm, is obligated to remit such principal and interest to the DTC Participants for subsequent disbursement to the Beneficial Owners of the Notes, as further described herein under the caption "Book-Entry Only System." Form and Denomination The Notes will be issued in fully registered form as to both principal and interest in the denomination of $50,000 or any integral multiple thereof. The Notes, when issued, will be registered in the name of Cede & Co., as registered owner and nominee of The Depository Trust Company, New York, New York ("DTC"). DTC will act as securities depository for the Notes. Individual purchases may be made in book- entry form only. Purchasers will not receive certificates representing their interest in the Notes purchased. So long as Cede & Co. is the registered owner of the Notes, as nominee of DTC, references herein to the registered owners or Note owners will mean Cede & Co. and will not mean the "Beneficial Owners" of the Notes. In this Official Statement, the term "Beneficial Owner" will mean the person for which a DTC participant acquires an interest in the Notes. 1 So long as Cede & Co. is the registered owner of the Notes, principal of and interest on the Notes are payable by wire transfer by the Registrar to DTC, which, in turn, is obligated to remit such principal and interest to the DTC participants for subsequent disbursement to Beneficial Owners of the-Notes, as further described under the caption "Book-Entry Only System." Book-Entry Only System The following information has been provided by DTC. Beneficial Owners should confirm the following with DTC or the Participants. DTC will act as initial securities depository for the Notes. The Notes will be issued as fully registered Notes, and will be registered in the name of Cede & Co. (DTC's partnership nominee). One fully-registered Note certificate will be issued for the Notes, in the aggregate principal mount of the Notes, and will be deposited with DTC. DTC is a limited-purpose trust company organized under the New York Banking Law, a "banking organization" within the meaning of the New York Banking Law, a member of the Federal Reserve System, a "cleating corporation" within the meaning of the New York Uniform Commercial Code and a "clearing agency" registered pursuant to the provisions of Section 17A of the Securities Exchange Act of 1934, as amended. DTC holds securities that its participants (the "Participants") deposit with DTC. DTC also facilitates the settlement among Participants of securities transactions, such as transfers and pledges, in deposited securities through electronic computerized book-entry changes in accounts of the Participants, thereby eliminating the need of physical movement of securities certificates. Direct Participants include securities brokers and dealers, banks, trust companies, cleating corporations and certain other organizations. DTC is owned by a number of its Direct Participants and by the New York Stock Exchange, Inc., the American Stock Exchange, Inc. and the National Association of Securities Dealers, Inc. Access to the DTC system is also available to others such as banks, brokers, dealers and trust companies that clear through or maintain a custodial relationship with a Direct Participant, either directly or indirectly ("Indirect Participants"). The rules applicable to DTC and its Participants are on file with the Securities and Exchange Commission. Purchases of the Notes under the DTC system, in denominations of $50,000 or any integral multiple thereof, must be made by or through Direct Participants, which will receive a credit for the Notes on DTC's records. The ownership interest of each actual purchaser of each Note ("Beneficial Owner') is in mm to be recorded on the Direct and Indirect Participants' records. Beneficial Owners will not receive written confirmation from DTC of their purchase, but Beneficial Owners are expected to receive written confirmations providing details of the transaction, as well as periodic statements of their holdings, from the Direct or Indirect Participants through which the Beneficial Owner entered into the transaction. Transfers of ownership interests in the Notes are to be accomplished by entries made on the books of Participants acting on behalf of Beneficial Owners. Beneficial Owners will not receive certificates representing their ownership interests in the Notes, except in the event that use of the book-entry system for the Notes is discontinued. To facilitate subsequent transfers, all Notes deposited by Participants with DTC are registered in the name of DTC's partnership nominee, Cede & Co. The deposit of Notes with DTC and their registration in the name of Cede & Co. effect no change in beneficial ownership. DTC has no knowledge of the actual Beneficial Owners of the Notes. DTC's records reflect only the identity of the Direct Participants to whose accounts such Notes are credited, which may or may not be the Beneficial Owners. The Participants will remain responsible for keeping account of their holdings on behalf of their customers. Conveyance of notices and other communications by DTC to Direct Participants, by Direct Participants to Indirect Participants, and by Direct Participants and Indirect Participants to Beneficial Owners will be governed by arrangements among them, subject to any statutory or regulatory requirements as may be in effect from time to time. Redemption notices will be sent to Cede & Co. If less than all of the Notes are being redeemed, DTC's practice is to determine by lot the amount of the interest of each Direct Participant in Notes to be redeemed. Neither DTC nor Cede & Co. will consent or vote with respect to Notes. Under its usual procedures, DTC mails an Omnibus Proxy to the City as soon as possible after the record date. The Omnibus Proxy assigns Cede & Co.'s consenting or voting rights to those Direct Participants to whose accounts the Notes are credited on the record date (identified in a listing attached to the Omnibus Proxy). Principal and interest payments on the Notes will be made to DTC. DTC's practice is to credit Direct Participants' accounts on payable date in accordance with their respective holdings shown on DTC's records unless DTC has reason to believe that it will not receive payment on the payable date. Payments by Participants to Beneficial Owners will be governed by standing instructions and customary practices, as is the case with securities held for the accounts of customers in bearer form or registered in "street name," and will be the responsibility of such Participant and not of DTC, the Registrar, or the City, subject to any statutory or regulatory requirements as may be in effect from time to time. Payment of principal and interest to DTC is the responsibility of the City or the Registrar. Disbursement of such payments to Direct Participants will be the responsibility of DTC, and disbursement of such payments to the Beneficial Owners will be the responsibility of Direct and Indirect Participants. DTC may discontinue providing its services as securities depository with respect to the Notes at any time by giving reasonable notice to the City or the Registrar. Under such circumstances and in the event that a successor securities depository is not obtained, Note certificates are required to be printed and delivered. The City may decide to discontinue use of book-entry transfers through DTC (or a successor securities depository).. In that event, Note certificates will be printed and delivered. The information in this section concerning DTC and DTC's book-entry system has been obtained from sources the City believes to be reliable, but the City takes no responsibility for the accuracy thereof. Procedure in the Event of Revisions of Book-Entry Transfer System If the City is unable to retain a qualified successor to DTC or the City has determined that it is in the best interest of the City not to continue the book-entry system of transfer or that interests of the Beneficial Owners of the Notes might be adversely affected if the book-entry system of transfer is continued, the City will execute, authenticate and deliver at no cost to the Beneficial Owners of the Notes or their nominees, Notes in fully registered form, in the denomination of $50,000 or any integral multiple thereof. Thereafter, the principal of and interest on the Notes will be payable to the persons who are named as registered owners of the Notes on the registration books for the Notes upon due presentment and surrender thereof at the principal corporate trust office of the Registrar, and the Notes will be transferable as provided in the Note Ordinance. Year 2000 Issues (The Bank of New York and DTC) DTC has stated that it is aware of the problems that may be presented for certain computer systems by the use of date fields and the like on and after January 1, 2000, and that it has developed and is implementing a program to help assure that its systems, as the same relate to the timely payment of principal and interest to bondholders, will be unaffected by such problems. However, DTC's ability to facilitate the timely payment of principal and interest is also dependent upon the issuer and certain third party vendors which routinely supply DTC with payment information. DTC has contacted these third party vendors to make them aware of the Year 2000 issues and has requested status update of their Year 2000 readiness. DTC has not indicated that it has contacted its Participants regarding Year 2000 compliance. 3 The Bank of New York has stated that it is aware of the problems that may be presented for certain computer systems on and after January 1, 2000, and has developed a strategic plan to complete Year 2000 compliance modifications to Bank-owned mission critical systems by the end of 1998, which should allow for a full year of production use of these systems prior to the Year 2000. AUTHORIZATION The Notes are issued in accordance with the provisions of the Constitution and applicable statutes of the State of Washington, pursuant to Ordinance No. 4645 (the "Ordinance") of the City Council, adopted on January 20, 1999. SECURITY The Notes are limited tax general obligations of the City. Unless the principal of and interest on the Notes are paid from other sources, so long as the Notes are outstanding, the City has irrevocably covenanted in the Ordinance to include in its budgets and to make annual levies of taxes upon all property within the City subject to taxation without a vote in mounts which, together with any other money legally available therefor, shall be sufficient to pay the principal and interest on the Notes as the same shall become due. The City has irrevocably pledged its full faith, credit and resources to the annual levy and collection of such taxes and for the prompt payment of such principal and interest. All of such taxes shall be paid into the Note Fund. The City has irrevocably covenanted that the annual tax to be levied for the payment of the principal of and interest on the Notes shall be within and as a part of the tax levy permitted the City without a vote of the people and that a sufficient portion of each such annual tax levy to be made so long as the Notes are outstanding, together with any other money legally available therefor, shall be set aside, pledged and appropriated for the payment of the principal of and interest on the Notes as the same shall become due. PURPOSE The proceeds of the Notes will be used to provide cash flow management of the City's General Fund revenues and expenditures, in anticipation of the eollection of sales, excise and general ad valorem property taxes and other money due the City's General Fund in 1999, and paying the costs of issuance and sale of the Notes, all as approved by the City Council. NOTE FUND The City has created and established in the office of the City Treasurer a special fund to be known and designated as the Tax Anticipation Note Fund, 1999 (the "Note Fund") for the sole purpose of payment of the principal of and interest on the Notes. Accrued interest, if any, received from the sale of the Notes shall be deposited in the Note Fund. FAILURE TO REDEEM THE NOTES If any Note is not paid when properly presented at its maturity, the City is obligated to pay interest on that Note at the same rate provided in the Note from and after its maturity until that Note, both principal and interest, is paid in full or until sufficient money for its payment in full is on deposit in the Note Fund. 4 DEBT PAYMENT RECORD The C_ity has always promptly met principal and interest payments on outstanding obligations when due. Additionally, no refunding Bonds have been issued for the purpose of preventing an impending default. FUTURE FINANCING The City is considering the possibility of refinancing approximately $2 to $2.5 million of its Limited Tax General Obligation Bonds, 1994, issued for development of thc Oold Mountain Golf Course, sometime in the first quarter of 1999. ASSESSED VALUATION DETERMINATION In the State of Washington, the County Assessor (the "Assessor") determines the value of all real and personal property throughout the County (including the City) which is subject to ad valorem taxation. The Assessor's duties and methods of determining value are prescribed and controlled by statute and by detailed regulations promulgated by the Department of Revenue of the State of Washington. For tax purposes the assessed value of property is set at 100% of its actual value. Property in Kitsap County is revalued annually based on market sales and receives an on-site appraisal every six years. The property is listed by the Assessor on a tax roll at its current assessed value and the tax roll is filed in the Assessor's office. The Assessor's determinations are subject to revision by the County Board of Equalization and, for certain property, subject to further revision by the State Board of Equalization. After all administrative procedures are completed, the taxing unit receives the Assessor's final certificate of assessed value of property within the taxing unit. TAX COLLECTION PROCEDURE Property taxes are levied in specific amounts, and the rate for all taxes levied for all taxing cities in the County (including the City) are determined, calculated and fixed by the Assessor based upon the assessed valuation of the property within the various taxing cities. The Assessor extends the taxes to be levied within each taxing City upon a tax roll which contains the total amount of taxes to be so levied and collected and assigns a tax account number to each tax lot. The tax roll is delivered to the Kitsap County Treasurer by January 15 of each year, and an abstract of the tax roll, showing the total amount of taxes collectible in each of the taxing cities for the year, is delivered to the Board of County Commissioners at the same time. All taxes are due and payable on the 30th of April of each year, but if the amount due from a taxpayer exceeds $30.00, one-half may be paid then and the balance no later than October 31 of each year. The method of giving notice of payment of taxes due, accounting for the money collected, the division of the taxes among the various taxing cities, giving notice of delinquency, and collection procedure are all covered by detailed statutes. The lien for ad valorem property taxes which have been levied prior to the filing of federal tax liens is prior to such federal tax liens. In other respects, and subject to the possible "Homestead Exemption," the lien for delinquent property taxes is prior to all other liens or encumbrances of any kind on real or personal property subject to taxation. By law (chapter 6.13 RCW) the taxing unit may commence foreclosure of a tax lien on real property after three years have passed since the first delinquency. Washington State's courts have not decided whether the Homestead Exemption"may give the occupying home owner a right in the forced sale of the family residence for delinquent general property taxes to retain the first $30,000 of proceeds of the sale. (See Algona vs. Sharp, 30 Wn. App. 837, 638 P.2d 627 (1982), holding the homestead right superior to liens for local improvement district assessments). AUTHORIZATION OF DEBT The power of the City to contract debt of any kind is controlled and limited by state law. All debt must be set forth in accordance with detailed budget procedures and paid for out of identifiable receipts and revenues. The budget must be balanced for each fiscal year. It is unlawful for an officer or employee of the City to incur liabilities in excess of budgetary appropriations. GENERAL OBLIGATION INDEBTEDNESS Under the Constitution and statutes of the State, the City may incur two types of general obligation indebtedness, differentiated by the limits on the real and personal property taxes which may be collected for the payment thereof. Limited tax general obligation indebtedness is payable from taxes upon all the taxable property in the City which may be imposed by the City within the limitations prescribed by State statute without a vote of the people (sometimes referred to as "non-voted debt" or "non-voted bonds" or "councilmanic bonds or notes"). The statutory limits on the levy of such taxes are described in the section herein entitled "LIMITS ON AMOUNT OF GENERAL OBLIGATION INDEBTEDNESS." Unlimited tax general obligation indebtedness is payable from taxes without limitation as to rate or mount, imposed upon all taxable property in the City. Unlimited tax indebtedness may be incurred only after approval by 60% of the City voters at an election in which the total vote cast exceeds 40% of the votes cast at the last preceding general election of the City or State. Such unlimited tax indebtedness is sometimes referred to as "voted debt," "voted bonds" or "unlimited tax bonds." Bonds issued to refund outstanding general obligation indebtedness of either type may be issued without voter approval. LIMITS ON AMOUNT OF GENERAL OBLIGATION INDEBTEDNESS State statutes limit the total principal amount of all City general obligation indebtedness incurred for "general" purposes, both limited tax and unlimited tax, to 2.5% of the actual value of taxable property within the City. Within this 2.5% limitation, non-voted indebtedness is further limited to 1.5% of the value of sUch taxable property. The City is additionally authorized to incur general obligation indebtedness for the following "special" purposes, with voter approval, in the total principal amount of up to the following percentages of the actual value of taxable property within the City: water, artificial light and sewers: 2.5%; open space and park facilities: 2.5%. The combination of unlimited tax and limited tax general obligation debt for all purposes cannot exceed 7.5% of the City's assessed valuation. The gtate statutory limits on City general obligation indebtedness described in this section are more restrictive than those contained in the State Constitution. Both the Constitutional and statutory debt limits may be exceeded if necessary to meet obligations made mandatory by State law or, if necessary, to maintain the corporate existence of the City. In computing total general obligation indebtedness, the following "assets" may be deducted against the principal amount of indebtedness outstanding: (a) money and investments on deposit in general obligation bond retirement funds: (b) taxes (both current and delinquent) levied for the payment of general obligation indebtedness; and (c) delinquent (but not current) taxes due the general fund. In addition to limits on the total principal amount of general obligation indebtedness described in this section, the Constitution and statutes of the State impose other limitations on the City's levy of taxes upon real and personal property (see section herein entitled "TAXING POWERS AND LIMITATIONS".) AUTHORIZATION OF SHORT-TERM DEBT As a result of 1982 legislation, any Washington municipal corporation may borrow money and issue short-term obligations, the proceeds of which may be used for any lawful purpose. Short- term obligations may be issued in anticipation of the receipt of revenues, taxes, or grants or the sale of (1) general obligation bonds if the bonds may be issued without the consent of the voters or if previously ratified by the voters; (2) revenue bonds if the bonds have been authorized by ordinance or resolution; or (3) local improvement district bonds if the bonds have been authorized by ordinance or resolution. These short-term obligations shall be repaid out of money derived from the source or sources in anticipation of which they were issued or from any money legally available for this purpose. Additionally, the City may incur short-term indebtedness in the following ways: f'n-st, in an emergency, the Council members may put a plan into effect and authorize indebtedness outside the current budget. All expenditures for emergency purpose shall be paid by warrants from any available money in the fund properly chargeable with such expenditures. If there is insufficient money on hand in the fund, the warrants become registered interest-bearing warrants. In adopting the budget for any fiscal year, the Council members shall appropriate funds to retire any outstanding registered warrants issued since the adoption of the last preceding budget. Second, the City may, without a vote of the electors, purchase property on a conditional sales contract if the total contract amount, together with the other non-voted general obligation indebtedness of the City, does not exceed 3/4 of 1% of the value of taxable property in the City; any item so purchased must be budgeted for payment in accordance with the terms of the contract. TAXING POWERS AND LIMITATIONS Pursuant to chapter 84.52.043 KCW, cities may levy, without a vote of the residents residing therein, a maximum of $3.375 per thousand for general city purposes (the "regular levy"). Cities with full-time firemen may levy an additional $.225 per thousand to fund the city's Fireman's Pension Fund (chapter 41.16.060 RCW), thus creating a maximum annual levy rate of $3.60 per thousand. The City is currently levying $3.325 per thousand dollars of taxable assessed valuation for its regular levy. According to RCW 27.12.390, any city or town annexed to a rural library district, island library district, or inter-county rural library district, such as the City, shall be entitled to levy up to $3.60 per thousand dollars of assessed valuation less any regular levy made by such library district in the incorporated area, notwithstanding any other provision of law. A city's regular property taxes are subject to the provisions of a state statute limiting the growth of annual property taxes (RCW 84.55.010). The limitation, which was amended by the Property Tax Act (enacted as Senate Bill 5835 by the Washington Legislature in 1997 and adopted and ratified at the November 1997 general election) provides that the regular property taxes payable in the following year shall not exceed the amount of the single highest regular levy amount lawfully levied by the municipal entity in the three immediately preceding calendar years .multiplie.d by a limit factor, plus an additional amount due to the incremental assessed valuation increase in the municipal entity caused by new construction and property improvements. The limit factor is defined in the Property Tax Act as (i) the lesser of 106% or 100% plus inflation, or (ii) any amount up to 106% if approved by a majority plus one vote of the governing body of the 7 municipality upon a finding of substantial need. The regular property taxes levied by a city may be increased above the limit factor upon the affirmative vote of a majority of the voters residing in th_e municipal entity at an election held for such purposes (RCW 84.55.050). AUDITING OF CITY FINANCES The State Auditor is required to examine the affairs of cities at least once every two years. The examination must include, among other things, the financial condition and resources of the City, whether the laws and constitution of the State are being complied with, and the methods and accuracy of the accounts and reports of the City. Reports of the Auditor's examinations are required to be filed in the office of the State Auditor and in the auditing department of the City. AUTHORIZED INVESTMENTS Chapter 39.59 RCW limits the investment of public funds to the following authorized investments: bonds of the State and any local government in the State, which bonds are rated at the time of investment in one of the three highest credit ratings by a nationally recognized rating agency; general obligation bonds of other states and subdivisions thereof so long as those bonds are rated in one of the three highest categories; registered warrants of a local government within the same county as the entity making the investment; and any investment authorized by law for the treasurer of the State or any local government exclusive of certificates of deposit of banks or bank branches not located in the State, Under chapter 43.84 RCW, the State Treasurer may invest in non-negotiable certificates of deposit in designated qualified public depositories; in obligations of the U.S. government, its agencies and wholly owned corporations; in bankers' acceptances; in commercial paper; in repurchase agreements; in the obligations of the federal home loan bank, federal national mortgage association and other government corporations subject to statutory provisions. Utility revenue bonds and warrants of any city and bonds or wan'ants of a local improvement district are also eligible investments (RCW 35.39.030). Any municipal corporation, including the City, may authorize the investment of funds not required for immediate expenditure by the County Treasurer. Such funds of the City, including debt service funds, may be invested by the County Treasurer. The County Treasurer may, upon the request of one or more units of local government that invest their money with the County, combine that money for the purposes of investment (RCW 36.29.022). The office of the County Treasurer receives up to five percent of the earnings on such investments, subject to a maximum of $50 on each transaction, as its investment service fee. The County Treasurer may reimburse its office for any expenses incurred in the establishment and maintenance of such a County investment pool (RCW 36.29.024). Local Government Investment Pool The State Treasurer's Office administers the Washington State Local Government Investment Pool (the "LGIP"), a $1.25 billion fund that invests money on behalf of more than 350 cities, counties and special taxing districts. In its management of LGIP, the State rrreasury adheres, at all times, to the principles appropriate for the prudent investment of public funds. These are, in priority order, (i) the safety of principal; (ii) the assurance of sufficient liquidity to meet cash flow demands; and (iii) to attain the highest possible yield within the constraints of the first two goals. Historically, the LGIP has had sufficient liquidity to meet all cash flow demands. The LGIP, authorized by chapter 43.250 RCW, is a voluntary pool that provides its participants the opportunity to benefit from the economies of scale inherent in pooling. It is also intended to offer participants increased safety of principal and the ability to achieve a higher investment yield than would otherwise be available to them. The LGIP is a conservatively managed, highly liquid money market fund. The pool is restricted to investments with maturities of one year or less, and the average investment life typically is less than 90 days. Permissible investments include U.S. government and agency securities, bankers' acceptances, high quality commercial paper, repurchase and reverse repurchase a~eements, and certificates of deposit issued by qualified Washington State depositories. Authi~rized Investments for Bond Proceeds In addition to the eligible investments discussed above, bond proceeds only may also be invested in mutual funds with portfolios consisting of U.S. government and guaranteed agency securities with average maturities of less than four years; municipal securities rated in one of the four highest categories; and money market funds consisting of the same, so long as municipal securities held in the fund(s) are in one of the two highest rating categories. Bond proceeds may also be invested in shares of money market funds with portfolios of securities otherwise authorized by law for investment by local governments (RCW 39.59.030). The City's Investments The investments of the City, except those of the Community Development Block Grant Fund, are managed in a pooled format. Interest earnings are distributed monthly to the individual funds based on their respective balances at the beginning of the month. These pooled investments are classified on the balance sheet as cash and equivalents. As required by state statue, all investments and deposits of the City's funds are obligations of the U.S. Government, U.S. agency issues, deposits with the State Treasurer's Investment Pool, prime bankers' acceptances, deposits with W~hington State banks and savings and loan institutions or repurchase a~eements with authorized securities as collateral. 9 NET DIRECT DEBT AND ESTIMATED NET OVERLAPPING GENERAL OBLIGATION DEBTt (As of November 30, 1998) Direct Debt: Voted General Obligation Bonds Outstanding ....................... $ 1,395,000 Non-Voted Bonds Outstanding .............................................. 8,458,150 Non-Voted General Obligation Tax Anticipation Notes ......... 1,250,000 Bank Line of Credit Outstanding ............................................ 8,210 Lease-Purchase Contract Outstanding ..................................... 10,128 Less: Debt Service Fund Balance ............................................ (346,374) Net Direct Debt ........................................................ $ 10,775,114 Estimated Net Overlapping Debt: Net G.O. Debt Percent of Amount of Outstanding Overlap' Overlap Kitsap County $ 46,077,179 11.05% $ 5,089,710 Port of Bremerton 1,564,788 25.95 406,056 Bremerton Sch. Dist. No. 100-C 27,625,000 73.98 20,435,879 Central Kitsap Sch. Dist. No. 401 87,175,000 1.09 948,188 South Kitsap Sch. Dist. No. '402 9,780,000 0.13 13,163 Estimated Net OYerlapping Debt: .............................................. $ 26,892,996 Net Direct Plus Estimated Net Overlapping Debt: .......................................... $ 37,668,110 BONDED DEBT RATIOS OF THE CITY Preliminary Assessed Valuation for Collection Year 19992 .......................... $1,343,271,067 Estimated City Population (1998)3 ............................................................... 37,260 Assessed Valuation Per Capita ..................................................................... $ 36,051 Net Direct Debt to Assessed Valuation ........................................................... 0.80% Net Direct and Estimated Overlapping Debt to Assessed Valuation ............ 2.80% Net Direct Debt per Capita ........................................................................... $ 289 Net Direct and Estimated Overlapping Debt Per Capita ............................... $ 1,011 I Adjusted to reflect the issuance of the Notes. 2 Preliminary assessed valuation for tax collection year 1999 is stated as the full assessed value of all taxable real and personal property in the City. 3 Source: Washington State Office of Financial Management (August 1998). 10 STATUTORY DEBT LIMIT CALCULATION~ (As of November 30, 1998) Total Preliminary 1998 Assessed Valuation for Collection Year 1999 .................. $ 1,343,271,067 I. General Purposes a. Non-Voted Indebtedness Limit (1.5% of Assessed Valuation) .............. $ 20,149,066 Less: Non-Voted Bonds Outstanding ................................................ (8,458,! 50) Less: Non-Voted Notes Outstanding ................................................ (1,250,000) Less: Bank Line of Credit Outstanding ............................................. (8,210) Less: Lease-Purchase Contract Outstanding ...................................... (10,128) Plus: Cash and Investments in Debt Service Funds ........................... 302,927 Remaining Capacity for General Purposes (Non-voted) ............. $ 10,725,505 b. Voted Indebtedness Limk (2.5% of Assessed Valuation) ...................... $ 33,581,777 Less: Voted Bonds Outstanding ......................................................... (1,395,000) Less: Non-Voted Bonds Outstanding ................................................ (8,458,100) Less: Non-Voted Notes Outstanding (the Notes) .............................. (1,250,000) Less: Bank Line of Credit Outstanding ............................................. (8,210) Less: Lease-Purchase Contract Outstanding ...................................... (10,128) Plus: Cash and Investments in Debt Service Funds ........................... 346,374 Remaining Capacity for General Purposes (Voted) ..................... $ 22,806,713 II. Utility Purposes (2.5% of Assessed Valuation) Limit ...................................................................................................... $ 33,581,777 Less: Bonds Outstanding ............................................................. ......... 0 Remaining CapaciTM for Utility Purposes .................................... $ 33,581,777 III. Parks and Open Space Purposes (2.5% of Assessed Valuation) Limit ...................................................................................................... $ .33,581,777 Less: Bonds Outstanding ...................................................................... 0 Remaining Capacity for Parks and Open Space Purposes ........... $ 33,581,777 1 Adjusted to reflect the issuance of the Notes. 11 AD VALOREM TAX RECORD OF THE CITY i - Collected as of Collection Taxable Assessed Tax Collected Year of Levy November 30, 1998 Year Valuation2 Levy3 Amount Percent Amount Percent 1999 $1,343,271,0674 NA5 HA5 NA5 NA5 NA5 1998 1,345,904,065 $ 5,450,559 $ 3,779,316 69.74%6 $ 3,801,020 69.74% 1997 1,299,548,001 4,953,030 4,702,202 94.94 4,858,989 98.10 1996 1,223,940,521 4,669,894 4,467,109 95.66 4,622,692 98.99 1995 1,203,299,197 4,464,606 4,236,391 94.89 4,455,531 99.80 1994 1,169,824,600 4,128,583 3,957,637 95.86 4,122,384 99.85 NOTE: Taxes are due and payable on April 30, of each year. At least one half of the tax mount due must be paid on or before April 30, or else the total amount becomes delinquent on May 1. The second half of the tax due is payable on or before October 31, becoming delinquent November 1. AD VALOREM PROPERTY TAX RATES IN THE ClTY~ (Rates In Dollars per $1,000 of Assessed Valuation) City School Emerg. Collection General City State Kitsap Port of Dist. No. Medical Regional Year Fund Bonds School County Bmmerton 100C PUD Services Library Total 1998 $ 3.3250 $ 0.2218 $ 3.5911 $ 1.3908 $ 0.4624 $ 5.0292 $ 0.1017 $ 0.5000 $ 0.5000 $15.1220 1997 3.3469 0.2153 3.6467 1.6641 0.4338 5.1331 0.0998 0.2500 0.9781 15.7678 1996 3.3573 0.2255 3.4848 1.6347 0.4287 5.1551 0.0939 0.2500 0.4677 15.0977 1995 3.2470 0.2308 3.5508 1.2249 0.4079 2. ! 387 0.0940 0.2500 0.4595 1 [.6036 1994 3.0635 0.2393 3.4297 1.1731 0.3897 5.0440 0.0865 0.2490 0.4447 14.1210 I Source: Kitsap County Treasurer 2 Assessed valuation is stated as the assessed valuation of ali taxable real and personal property in the City. 3 Includes all City levies. 4 Preliminary, subject to change. 5 Not available. 6 Does not include December 1998 collections. 12 COMPARATIVE STATEMENT OF GENERAL FUND REVENUES AND EXPENDITURES 1 : (FISCAL YEAR ENDING DECEMBER 31) 1997 1996 1995 1994 1993 Revenues: Taxes $ 15,678,923 $ 15,498,917 $ 14,501,567 $ 14,137,828 $ 13,340,322 Licenses & Permits 348,796 312,203 298,989 390,454 362,968 Intergovernmental 812,436 742,432 847,272 728,407 778,927 Charges for Services 1,762,945 1,864,848 1,783,646 1,394,815 1,502,067 Fines & Forfeits 512,828 433,775 483,964 593,093 556,447 Miscellaneous 290,343 342.700 248,743 240,672 261,198 Total Revenues $ 19,406,271 $ 19,194,875 $ 18,164,181 $ 17,485,269 $ 16,801,929 Expenditures: General Government $ 4,199,525 $ 5,313,516 $ 5,009,311 $ 4,843,656 $ 5,039,485 Security of Persons & Prop. 10,893,020 9,313,570 8,614,262 8,219,945 7,850,957 Physical Environment 613,338 942,764 848,346 587,931 698,08i0 Transportation 923,064 959,327 850,639 840,530 879,838 Economic Environment 507,996 276,689 454,250 514,320 448,824 Men£al & Physical Health 24,632 30,818 264,239 250,493 249,239 Culture & Recreation 1,768,867 1,867,204 1,566,669 1,426,763 1,323,285 Redemption of Gen. L.T. Debt 2,688 0 0 24,672 30,735 Debt Service 74,055 85,540 59,860 44,593 18,414 Capital Outlay 298,438 404,888 486,005 385,414 277,113 Total Expenditures $ 19,305,623 $ 19,194,316 $ 18,153,581 $ 17,138,317 $ 16,815,970 Other Financing Sources (Uses) Operating Transfers In $ 113,144 $ I96,725 $ 6,000 $ 6,000 $ 6,000 Operating Transfers Out (406,836) (357,180) (307,836) (398,376) (236,725) General Fixed Assets Disp. 15,568 36,671 2, 886 59,640 0 Proceeds of Gen. L.T. Debt 16,629 237,700 0 0 0 Total Other Financing Sources (Uses) $ (261,495) $ 113,916 $ (298,950) $ (323,736) $ (230,725) Fund Balance, January 1 $ 861,135 $ 709,671 $ 1,064,368 $ (44,548) $ 206,399 Prior Year's Corrections 0 0 0 0 0 Residual Equity Transfers 0 6,435 (65,128) 9,717 (6,108) Other Equity Changes 1,438 30.554 (1,219) I ~084,983 (73) TOTAL ENDING FUND $ 701,726 $ 861,135 $ 709,671 $ 1,064,368 $ (44,548) BALANCE CONTINGENCY RESERVE FUND YEAR-END BALANCES1,2 1997 t996 1995 1994 1993 Ending Fund Balance $ 706,947 $ 673,110 $ . 709,040 $ 704,922 $ 387,205 1 Source: City of Brcmerton Annual Financial Reports. Ail years have been audited by the Washington State Auditor's Office. 2 Money in this fund in excess of $650,000 is transferred to thc General Fund to finance capital purchases. 13 GENERAL FUND BUDGET FOR 1998 AND 1999~ (Fiscal Year Ending December 31) 19982 1999 REVENUES Begflaning Fund Balance ........................................................ $ 550,667 $ 535,000 Taxes ...................................................................................... 16,353,700 16,569,500 Licenses and Permits .............................................................. 343,605 343,480 Intergovernmental Revenue ................................................... 787,043 1,057,811 Charges for Services .............................................................. 1,64 t,065 1,739,205 Fines and Forfeitures ............................................................. 515,500 $ 36,600 Miscellaneous and Other ........................................................ 3,085,828 3,057,345 Total Revenue ........................................................................ $ 23,277,408 $ 23,838,941 EXPENDITURES General Government City Council ........................................................................... $ 163,326 $ 166,397 Executive ............................................................................... 213,189 160,297 Administrative Services3 ....................................................... 2,070,164 2,088,385 Police & Fixe Pension ..................................................... 1,432,188 1,513,337 Intergovernmental Service .............................................. 119,956 134,447 Misc. Non-Departmental ............................................... 1,002,163 1,347,387 Legal Department .................................................................. 586,119 501,756 Human Resources .................................................................. 236,272 205,352 Community Development ...................................................... 714,729 709,457 City Auditor ........................................................................... 89,621 85,426 Public Safety Police Department .................................................................. 6,090,02 l 6,269,049 Fire Deparlxnent ..................................................................... 4,151,654 4,218,965 Public Works General Facilities ................................................................... 419,776 418,171 Engineering ............................................................................ 355,601 351,178 Transportation ........................................................................ 1,106,342 1,165,008 Leisure Services General Parks ......................................................................... t,022,620 1,054,51 l Recreation .............................................................................. 227,362 221,692 Senior Center ......................................................................... 166,794 171,668 Pool ........................................................................................ 281,535 293,328 Cemetery Services ................................................................. 71,415 72,025 Athletics ................................................................................. 256,561 191,105 Tax Anticipation Note Debt Service ..................................... 2,500,000 2,500,000 Total Current Expenditures ................................................ $ 23,277,408 $ 23,838,941 I Source: City of Bremerton. 2 Amended Budget. 3 City Clerk, Treasurer, Information Services, Municipal Court and Risk Management are combined under Administrative Services. 14 SCHEDULE OF GENERAL OBLIGATION BOND DEBT SERVICE FOR THE CITY] (As of December 31, 1998) Outstanding Non-Voted Voted General Obligation Bonds General Obligation Bonds Total Year Principal Interest Principal Interest All Bonds 1999 $ 205,000 $ 56,994 $ 452,391 $ 496,105 $ 1,210,490 2000 140,000 47,723 480,758 471,815 1,140,296 2001 185,000 40,805 680,000 445,850 1,351,655 2002 190,000 32,648 720,000 406,057 1,348,705 2003 205,000 23,906 760,000 363,213 1,352,119 2004 135,000 16,308 810,000 317,252 1,278,560 2005 140,000 10,085 855,000 267,563 1,272,648 2006 150,000 3,450 910,000 213,872 1,277,322 20.07 0 0 965,000 155,663 1,120,663 2008 0 0 275,000 92,475 367,475 2009 0 0 290,000 75,370 365,370 2010 0 0 315,000 57,195 372,195 2011 0 0 335,000 37,017 372,017 2012 0 0 275,000 15,537 290,537 Total $ 1,350,000 $ 231,919 $ 8,123,149 $ 3,414,984 $ 13,120,052 CITY PROFILE The City was incorporated in 1901 and operates as Home Rule Charter City with a Mayor Council form of government. The Council is comprised of nine members,' elected by district by the citizens of the City, each serving a four-year term. The Council Members are part-time elected officials who exercise the legislative powers of the City and determine matters of policy. The Mayor, a full-time elected official, is the chief executive officer of the City. The Officers and department directors are appointed by the mayor with Council approval. The City provides a full range of municipal services including fire and police protection, parks and recreation facilities/activities, streets, planning, zoning and general administrative services. The City operates water, sewer and stormwater utility systems. Currently, there are 322 full-time employees of the City. Key Personnel Lynn Horton, Mayor: Ms. Horton began her second term as Mayor of the City ia 1998. Before her election as mayor, she served for six years on the Bremerton City Council. She is the past Chair and current Board Member of the Kitsap Regional Planning Council, and a board member of Kitsap Transit, Kitsap County Cen-Com and the Bremerton-Kitsap County Health Department. Ms. Horton is a graduate of the University of Washington and has been a resident of the City since 1974. 1 Does not include the Notes. 15 Richard Hanna, City Treasurer: Mr. Hanna has been the Treasurer of the City of Bremerton since 1986. Before joining the City, he was Treasurer of the City of Centralia, Washington. Mr. Hanna received his Bachelor's Degree in Accounting from Western Washin~on University in 1974-and a Masters of Business Administration Degree in Finance from University of Puget Sound in 1983. Mr. Hanna is a member of the Washington Finance Officers Association, Washington Municipal Treasurers Association and Puget Sound Finance Officers Association. Labor Relations The City has entered into written agreements with each of the bargaining groups set forth below. These agreements contain provisions on such matters as vacations, sick leave, medical and dental insurance, salaries, working conditions and grievance procedures. Employees of the City r6presented by bargaining units are as follows: Union Membership Contract Period Expiration Date Teamsters Local 589 130 3 yr. 12/31/00 PatrOlman's Association 53 3 yr. 12/31/99 Police Management Association 5 3 yr. 12/31/99 International Association of 44 3 yr. 12/31/98 I Fire Fighters Local 437 In accordance with State reqUirements, the City conducts full negotiations with all bargaining units. The City's management considers its relations with employees to be satisfactory. The City - Year 2000 Information The City has evaluated its computer applications and equipment using date logic regarding the potential problems related to date-sensitive functions beginning in the year 2000. The City is continuing to address these issues. The City does not believe that there will be any material adverse impact on the City or its operation. However, it is not possible to forecast or anticipate all potential problems at this time that could arise from internal systems or interfaces with other service providers. It is not possible to quantify potential losses due to disruption of service nor the amount of any potential recovery or liability by the City. Kitsap County - year 2000 Information Two years ago Kitsap County began identifying and correcting technology programs and replacing systems which were not Year 2000 compliant. The County has classified these applications into three major categories: its own business computing applications, its interface with external agencies and its non-business computing environment. Each area includes identified critical and non-critical factors, as well as target dates for completion of each task. Factors identified as "critical" by the County are targeted for completion (reaching compliance) by mid- 1999. 1 Under negotiation. 16 GENERAL AND ECONOMIC INFORMATION The City of Bremerton, is located on Puget Sound, approximately 15 miles west of Seattle and 35 miles north of Tacoma. The largest city in Kitsap County (the "County"), Bremerton was incorporated in 1901 and has an estimated 1998 population of 37,260 Kitsap County, covering 393 square miles of land, also includes the following other incorporated areas: Bainbridge Island (1998 population 19,080), Port Orchard (1998 population 6,945) and Poulsbo (1998 population 6,590). Military Presence The economy of the City is closely tied to the United States Navy. The Puget Sound Naval Shipyard in Bremerton ("PSNS") is the largest Naval shipyard on the Pacific Coast and is the only West Coast shipyard capable of working on nuclear ships. With 8,494 civilian employees, 8,955 military personnel, and approximately 12,000 military family members, the shipyard is also the only facility capable of decommissioning and recycling nuclear submarines which are being disassembled in accordance with Strategic Arms Limitations Treaties. PSNS is the largest naval employer in the State. The shipyard itself encompasses 344 acres of hard land, 382 buildings and nine permanent piers totaling 12,310 feet of deep water space. The economic impact of PSNS locally is $700 million per year. The Fleet Industrial Supply Center is another local military, facility in the City, with about 200 employees. Located a few miles north of the City of Bremerton is the Naval Submarine Base at Bangor. Bangor serves as a home base for Trident Missile submarines, the USS Parche fast attack submarine and various support commands. The base provides employment to 5,000 civilians, and 5,300 military personnel. Another 10,000 military family members are connected to the base. Bangor is the only base of its kind on the Pacific Coast. Annual local economic impact of Bangor is $230 million are local residents. Another military installation located near the City is the Naval Undersea Warfare Engineering Station at Keyport. The station tests and maintains torpedoes, provides maintenance support for fire control equipment and mines, and provides other engineering-related services for undersea warfare. The Undersea Warfare Station employs approximately 1,450 civilian and 30 military personnel. U.S. Navy Projects in Kitsap County Recent historical and projected spending for Navy construction and related facilities support work in Kitsap County provided by the U.S. Navy Engineering Field Activity Northwest office as follows: Kitsap County Fiscal Year Amount (millions) 1995 $ 200.7 1996 192.3 1997 142.3 1998 127.8 1999 115.8 2000 109.3 17 The $250.5 billion defense spending bill approved by Con~ess in September of 1998, includes the following projects for Kitsap County military facilities: Project Location Amount (millions) Innovative wastewater treatment research program PSNS $ 7.0 Development of an environmentally safe and inexpensive way to eradicate asbestos PSNS 4.0 Additional ship repair and maintenance projects* PSNS and others 30.0 Strengthening of apprenticeship program PSNS 3.5 Impact aid to education provided to Washington State (to offset loss of local tax base because of military Kitsap Co. 1.9 installations) Expansion of Naval Hospital Bremerton Bremerton 28.0 Security Force Building at Strategic Weapons Facility Pacific Bangor 2.8 Facility for housing the Navy's Disease Vector, Ecology and Control Center Bangor 5.7 Community Support Facility at Jackson Park Naval Housing Bangor 4.3 * A supplemental Defense Bill, expected to be passed later in the 1998-99 fiscal year, will include another $60 million for naval ship repair. Other Major Employers The Port of Bremerton (the "Port") operates the Bremerton National Airport and the 560-acre Olympic View Industrial Park, both located approximately 10 miles southwest of the City. The park includes 34 firms which employ a total of approximately 350 people. The Port's facilities are designated as a foreign trade zone which offers duty savings to its tenants. Harbor Air recently began providing commuter flights fi-om the Bremerton Airport, and a boat manufacturer recently began business at the industrial park. Bremerton National Airport is the largest airport in the County, with a 6,200-foot runway and full instrumentation and lighting systems. The airport can handle all general aviation aircraft and most transport and military planes. Charter passenger and air freight services are available to SeaTac Airport, the major international airport in the Puget Sound area. The Bremerton Airport is currently undergoing improvements. Health care needs are met by several facilities in the Bremerton area including the Naval Hospital - Bremerton with 347 civilian, 719 military and approximately 2,500 military family members. The Naval Hospital is undergoing a major renovation and expansion project. Harrison Memorial Hospital in Bremerton has 1,330 employees. In late 1993, Harrison Memorial completed a $20.5 million expansion project which doubled the number of operating rooms; expanded the laboratory and administration areas; and provided additional space for patient education and an outpatient mental health clinic. Harrison is building a new facility in the Silverdale area-of the County. A number of nursing homes and retirement complexes are also located in Bremerton. Olympic College is a two-year public community college located in Bremerton, with an enrollment of approximately 4,310 (full-time equivalents) and 600 employees, including part- time workers. The college offers associate of arts degrees in four fields, as well as adult education and non-credit courses, and began a four-year degree program (called "2-Plus-2") in 18 1994. The 2-Plus-2 degree program is associated with the University of Washington, Tacoma branch. A new library is being constructed at the college. The Olympic College campus will be expanding in the years ahead due to a private donation of 20 acres of land for that purpose near Poulsbo. Housing Kitsap County home sales in the first six months of 1998 indicated a stronger housing market than the first six months of 1997. Home listings averaged a listing time before sale of 98 days, versus 150 in the year prior. There were 1,439 single-family homes sold in the first six months of 1998, compared with 1,257 homes sold in the same period in 1997. Condominium sales were also up, with 69 sold in the first two quarters of 1998, compared with 50 sold in that period the year before. New Developments A proposed Growth Management Plan for Kitsap County will be heard by the Washington State Growth Management Heating Board in the first quarter of 1999. Upon approval of the plan it is expected that development of several projects in the City and the County which are dependent upon zoning changes, will proceed. Among the projects recently completed or proposed for development in Bremerton are the following: · The first phase of a Planned Unit Development, Sinclair Landing, is now under construction on the City's downtown waterfront. A combination of public and private uses make up this 38-acre project, including: a transit center, new ferry terminal, expansion of the waterfront park, expansion of the marina, a new terminal for passenger-only ferry service, parking, retail use, restaurants, offices, an inn, a multiplex cinema and multi-family housing, all connected with pedestrian corridors. A letter of commitment has been signed by the developer of the privately funded portion of the project, and anchor tenants are expected to be secured by the end of the first quarter of 1999. The portion of the project that will be publicly funded includes two fast foot ferries that will serve Bremerton (one is already in service), the Bremerton Transportation Center, highway improvements to Bremerton and an expanded overwater park and a parking garage. The cost of the publicly funded projects is estimated at $21 million. The privately funded projects, which include an outlet shopping complex, restaurants, history-theme entertainment, night clubs, a multi-screen move complex, a hotel and condominiums, are estimated to cost $265 million. Transportation linkage is the key public investment in Sinclair Landing. The new Bremerton Transportation Center, scheduled .to open in 1999, will serve ferry, bus, bicycle and pedestrian commuters and travelers on their way to Seattle and Port Orchard. Expanded ferry service is also on the way: hi~h-speed 30-minute passenger ferries between Bremerton and Seattle began service in 1998 and a 30% increase in car capacity is anticipated by 2000. New parking garages will accommodate foot ferry passengers and visitors coming to enjoy and do business at Sinclair Landing. · Pope Resources, a timber and land management company based in Poulsbo, and its subsidiary, Olympic Resource Management, have recently obtained land within the .City that is planned for development as a 61-acre business park and 209 acres for 450 new homes. Known as West Hills, the project will be submitted to the City for review upon receiving approval of the Growth Management Plan. · The Kitsap County Economic Development Council (EDC) has recently reorganized, reducing the size of its board, appointing four new directors and is refocusing its priorities on business (a) recruitment, (b) retention and expansion, (c) startup and education, (d) information services, and (e) community development for economic expansion. 19 · The Oyster Bay Plaza retail complex in the City has recently undergone expansion and renovation. QFC purchased the former 6,000 square-foot Thriftway and invested $3 million try upgrade the facility to a 26,000 square-foot supermarket. A remodeled Rite Aid Drugstore, new video stores, a renovated auto supply store and other improvements are now part of the this complex. · Twenty-First Century Research, a chemical research company, will be relocating from its current building near Poulsbo to a new, 20,000 square-foot demonstration plant on 18.8 acres at the Olympic View Industrial Park (partially within the City.) The company is expected to expand fi.om its 15 employees to approximately 50, upon completion of its two new buildings during the first quarter of 2000. · A 34-unit congregate care facility is currently under construction in the City. · The City is conducting a site plan review of the proposed Auto Center Industrial Park. The project includes cleating and grading of roadways and building pads for development of a 16.4 acre industrial park. · Another new addition to the Olympic View Industrial Park is Custom Camera Design, a recycler of disposable cameras. The company expects to complete construction of two 8,500 square-foot buildings by August 1999. Initially, the company expects to employ about 150 people · In the summer of 1998, ETF Electroplating located at the Olympic View Industrial Park. The company produces chrome parts for vehicles and has six employees. · Romark, Inc., a manufacturer of custom closets, also located at the Olympic View Industrial Park in late summer of 1998 in a 6,000 square-foot facility with 12 employees. The company is already expanding by another 3,000 square-feet and will add several new employees as well. · The Port is Currently in the design stage of a light industrial area known as the West Puget Tech Park, which will be developed at the Olympic View Industrial Park. Site work is expected to begin in spring of 1999 for a 24,000 square-foot business development center. The remainder of this project will be developed on a demand basis. · As of November 30, 1998, 536 building permits had been issued in the City for a total value of $!8.6 million. This compares with annual totals of 508 permits in 1997 valued at $19.4 million and 511 permits in 1996 valued at $15.8 million. There were 26 single-family homes permitted in 1998 as of November 30 and one four-plex. The eight new commercial properties .to receive permits during that time were valued at $3.8 million. Following are economic indicators of the City and the County. KITSAP COUNTY POPULATIONI Kitsap City of Other KitsapCounty County Year Bremerton Incorporated Unincorporated Total 1998 37,260 32,615- 159,125 229,000 1997 38,600 32,060 158,740 229,400 1996 38,496 31,210 155,120 224,700 1995 39,610 29,915 151,075 220,600 1994 35,920 28,625 148,655 213,200 1993 36,380 28,160 145,460 210,000 1992 38,990 27,405 139,205 205,600 1991 37,040 26,6392 132,821 196,500 1990 38,142 12,913 138,676 189,73I I Source: Washington State Office of Financial Management and U.S. Census. 2 The large increase is due to the annexation of the unincorporated areas of Bainbridge Island to the new City of Bainbridge Island. 20 CITY OF BREMERTON MAJOR TAXPAYERSl : Assessed Valuation for Taxpayer Business 1998 Collection Year Puget Sound Energy Electric Utility $ 21,832,996 US West Inc. Telecommunications 18,316,212 HMI, Inc. Developer 11,039,360 Michael Connolley Olympic College Business Svcs. 8,036,000 Viewcrest Villages Limited Partnership Apartments 7,828,000 Merit Company Retail 6,729,000 FirLane Terrace Convention Center Convention Center 6,504,000 East Towne Center Community Center 6,231,000 Cascade Natural Gas Gas Utility 5,918,012 Bremerton Cascade Associates Apartments 5,775,000 TAXABLE RETAIL SALES2 Year Kitsap County City of Bremerton 1997 $ 1,958,346,681 $ 498,779,418 1996 1,836,198,934 477,467,218 1995 1,768,304,057 451,277,414 1994 1,774,185,000 461,026,409 1993 1,658,975,823 422,329,475 SEATTLE-BREMERTON FERRY TRAFFIC STATISTICS3 Year Number of Vehicles Number of Passengers 1997 756,796 2,047,014 1996 731,926 1,863,596 1995 751,266 1,820,433 1994' 719,125 1,719,414 1993 676,031 1,694,234 KITSAP COUNTY AND WASHINGTON STATE LABOR FORCE AND AVERAGE ANNUAL UNEMPLOYMENT4 Resident Civilian Average Annual Total Year Labor Force Unemployment Employment Kitsap County (%) Washington (%) 1997 92,900 5,100 87,800 5.5 4.8 1996 93,500 6,300 87,200 6.7 6.5 1995 89,600 6,000 83,600 6.7 6.4 1994 88,600 5,300 83,300 6.0 6.4 1993 89,600 6,100 83,500 6.8 7.6 1 Source: Kitsap County Assessor's Office. 2 Source: Washington State Department of Revenue. 3 Source: Washington State Department of Transportation, Marine Division. Passengers total includes the passenger-only ferries and vehicle ferries. 4 Includes nonagricultural wage and salary, self-employed, unpaid family workers, domestics, agricultural workers, labor disputants. 21 KITSAP COUNTY AND WASHINGTON STATE INCOME ESTIMATES! Kitsap County Per Capita Income Year Personal Income ($000) Kitsap County Washington 1996 $ 4,811,513 $ 20,815 $ 25,277 1995 4,560,454 20,193 23,974 1994 4,330,443 20,024 22,806 1993 4,126,471 19,426 22,168 1992 3,937,392 18,714 21,515 KITSAP COUNTY MAJOR PRIVATE SECTOR EMPLOYERS2 Employer No. of Employees Harrison Memorial Hospital 1,330 Johnson Controls World Services'* 825 Safeway 644 Wal-Mart (as of Dec-97) 549 Laurier Enterprises (McDonald's) 450 Tracor3 401 Town & Country Markets 400 Fred MeYer 33 I Martha & Mary Nursing/Child Care 331 Group Health Cooperative 325 The Doctors Clinic 320 Belmont Terrace & Ridgemont Terrace 307 JC Penney Company 245 Costco Wholesale 230 The SUN Newspaper 221 Kitsap Physicians Service 208 KITSAP COUNTY MAJOR PUBLIC AGENCY EMPLOYERS4 Employer No. of Employees State agencies (Dept. of Revenue, Employment Security, Social & Health Services, Transportation, State Patrol) 1,891 Central Kitsap School District 1,595 South Kitsap School Dish"itt 1,295 North Kitsap School District 1,100 Kitsap County 1,053 Bremerton School District 950 Bainbridge Island School District 415 Olympic College 277 I Source: U.S. Bureau of Economic Analysis; presented in 1996 dollars. 2 Source: Kitsap County Economic Development Council as of August 1998. 3 Private companies handling major contracts with the D.O.D. 4 Source: Kitsap County Economic Development Council as of August 1998. 22 PRESERVATION OF TAX EXEMPTION The C-ity has covenanted, in the Ordinance, to take all actions necessary to prevent interest on the Notes from being included in gross income for federal income tax purpose, and it will neither take any action nor make or permit any use of proceeds of the Notes or other funds of the City at any time during the term of the Notes which will cause interest on the Notes to be included in gross income for federal income tax purposes. The City certifies that it has not been notified of any listing or proposed listing by the Internal Revenue Service to the effect that it is a bond issuer whose arbitrage certifications may not be relied upon. CONFLICTS OF INTEREST Some or all of the fees of the Underwriter and Bond Counsel are contingent upon the issuance and sale of the Notes. Furthermore, Bond Counsel from time to time serves as counsel to the Underwriter with respect to issuers other than the City and transactions other than the issuance of the Notes. None of the council members or other officers of the City has interests in the issuance of the Notes that are prohibited by applicable law. TAX EXEMPTION In the opinion of Gottlieb, Fisher & Andrews, PLLC, Bond Counsel, as of the date of issue of the Notes (the "Date of Issue"), and subject to certain assumptions described in the next paragraph: the Notes are not "private activity bonds," as defined by the Code; the Notes have been designated by the City as "qualified tax-exempt obligations" for purposes of the partial interest expense deduction for purposes of Section 265 of the Code; interest on the Notes is excluded from gross income for federal income tax purposes under existing federal law; and such interest is not an item of tax preference for purposes of determining the alternative minimum tax on individuals and corporations under existing federal law. However, under existing federal law interest on the Notes received by certain corporations is to be taken into account in the computation of adjusted current earnings for purposes of calculating the alternative minimum tax applicable to such corporations; such interest received by certain S corporations may be subject to tax; and such interest received by foreign corporations with United States branches may be subject to a foreign branch profits tax. Bond Counsel expresses no opinion regarding any other federal tax consequences of receipt of interest on the Notes. Potential purchasers of the Notes should consult with their tax advisors as to all possible tax consequences of ownership of the Notes. See also, "OTHER TAX CONSEQUENCES," herein. The Code contains certain requirements which must be satisfied subsequent to the issuance of the Notes in order to maintain the tax treatment described above, including requirements relating to the application of the proceeds of the Notes, use of facilities which are financed with such proceeds, limitations on income derived from the investment of gross proceeds of the Notes, and rebate to the United States Treasury of certain of such investment income on such gross proceeds. The City has covenanted to comply with these requirements; and the opinion of Bond Counsel described in the preceding paragraph assumes such compliance. However, Bond Counsel has not undertaken and shall not undertake to monitor compliance by the City with such requirements and failure of the City to comply with such requirements could cause the interest on the Notes to be included in gross income for federal income tax purposes, and could be treated as an item of tax preference for purposes of the alternative minimum tax on individuals and corporations, and could result in a loss of the partial interest expense deduction available for qualified tax-exempt obligations, in each case, retroactive to the Date of Issue. 23 OTHER TAX CONSEQUENCES Unde~ current federal law: 1. Corporate Alternative Minimum Tax. The interest on tax-exempt obligations received by a corporation is taken into account in the computation of the alternative minimum tax applicable to corporations (as defined for federal income tax purposes). Under current federal law, the alternative minimum taxable income of such a corporation (other than an S corporation, a regulated investment company, a real estate investment trust or a REMIC) is increased by 75% of the amount by which the "adjusted current earnings" of the corporation exceeds the corporation's alternative minimum taxable income determined without regard to such increase and any alternative tax net operating loss deduction. Interest on tax-exempt obligations, whenever issued or acquired, including interest on the Notes, is included in the computation of "adjusted current earnings." 2. Tax on Excess Passive Investment Income of S Corporations. Certain excess net passive investment income, including interest on the Notes, received by an S corporation (a corporation treated as a partnership for most federal tax purposes) that has "subchapter C earnings and profits" at the close of its taxable year may be subject to federal income tax at the highest rate applicable to corporations if more than 25% of the gross receipts of such S corporation for such taxable year is passive investment income. 3. Foreign Corporation Branch Profits Tax. Interest on the Notes received by certain foreign corporations doing business in the United States may be subject to a branch profits tax applicable to such corporations that is based on their Untied States source earnings and profits, including tax-exempt interest on obligations such as the Notes. 4. Reduction of Loss Deduction for Property and Casualty Insurance Companies. Interest on tax-exempt obligations, including the Notes, received by property and casualty insurance companies, will reduce tax deductions for loss reserves otherwise available to such companies by an amount equal to 15 percent of such tax-exempt interest received during the taxable year. 5. Social Security and Tier 1 Railroad Retirement Benefits Subject to Tax. Interest received or accrued during the year from tax-exempt obligations, such as the Notes, is included in the calculation of"modified adjusted gross income" of recipients of the social security or tier 1 raikoad retirement benefits. If the sum of the "modified adjusted gross income" for the taxable year plus one-half of the social security or tier 1 raikoad retirement benefits received during the taxable year exceeds a base amount provided by the Code (the "excess amount"), then the lesser of (i)' one-half of the social security or tier 1 raikoad retirement benefits received during the taxable year or (ii) one-half of the "excess amount", is included in the gross income of the social security or tier 1 railroad retirement benefit recipient. ABSENCE OF MATERIAL LITIGATION There is no litigation of any kind now pending or, to the knowledge of the City, threatened to restrain or enjoin the issuance or delivery of the Notes or in any manner questioning the proceedings and authority under which the Notes are issued or affecting the ability of the City to pay the principal of or the interest on the Notes. 24 APPROVAL OF BOND COUNSEL Legal matters incident to the authorization, issuance and sale of Notes by the City are subject to the approving legal opinion of Gottlieb, Fisher & Andrews, PLLC, Bond Counsel. A copy of the opinion of Bond Counsel will be delivered with the Notes. CONTINUING DISCLOSURE The City has undertaken, for the benefit of the Owners and Beneficial Owners of the Notes required by subsection (b)(5)(i)of the Rule 15c2-12 (the "Rule") of the United States Securities and Exchange Commission (the "SEC"), to provide or cause to be provided upon request to any person or at least annually to the State Information Depository ("SID"), if one is created, financial statements prepared in accordance with the generally accepted accounting principles applicable to governmental units, as such principles may be changed from time to time and as permitted by State law; which statements will not be audited, except that if and when audited financial statements are otherwise prepared and available to the City, they will be provided; and other operating data that may be prepared by the City (collectively, the "Financial Information"). In its provision of such financial information and operating data, the City may cross-reference to any "final official statement" (as defined in the Rule) available from the Municipal Securities Rulemaking Board (the "MSRB") or any other documents theretofore provided to each then existing Nationally Recognized Municipal Securities Information Repository designated by the SEC ("NRMSIR") or the SID, if one is created. The City further agrees to provide or cause to be provided, in a timely manner, to the SID, if one is created, and to either the MSRB or each then existing NRMSIR, notice of any of the following events with respect to the Notes, if material: 1. Principal and interest payment delinquencies; 2. Non-payment related defaults; 3. Unscheduled draws on debt service reserves reflecting financial difficulties; 4. Unscheduled draws on credit enhancements reflecting financial difficulties; 5. Substitution of credit or liquidity providers, or their failure to perform; 6. Adverse tax opinions or events affecting the tax-exempt status of the Notes; 7. Modifications to rights of the Owners of the Notes; 8. Optional redemptions of the Notes; 9. Defeasances of the Notes; 10. Release, substitution or sale of property securing repayment of the Notes; and 11. Rating changes. After the issuance of the Notes, so long as the interests of the Owners or Beneficial Owners of the Notes will not be materially impaired thereby, as determined by a party unaffiliated with the City (including, without limitation, a trustee for the Owners, nationally recognized bond counsel or other counsel familiar with the federal securities law), or pursuant to a favorable "no-action letter" issued by the SEC, this continuing disclosure undertaking may only be amended in connection with any change in legal requirements, change in law, or change in the identity, nature or status of the obligated person, or type of business conducted, and only in such a manner that the continuing disclosure undertaking of the City, as so amended, would have complied with the requirements of the Rule at the time of the primary offering, after taking into account any amendments or interpretations of the Rule, as well as any change in circumstances. The City's obligations to provide Annual Financial Information and notices of certain events shall terminate without amendment upon the defeasance, prior redemption or payment in full of all of the then outstanding Notes. This continuing disclosure undertaking or any provision 25 hereof, shall be null and void if the City (i) obtains an opinion of nationally recognized bond counsel or other counsel familiar with the federal securities laws to the effect that those portions of the Rule which require this continuing disclosure undertaking or any such provision are invalid, have been repealed retroactively or otherwise do not apply to the Notes; and (ii) notifies and provides the SID, if any, and either the MSRB or each then existing NRMSIR with copies of such opinion. The right of each Owner or Beneficial Owner of Notes to enforce the provisions of this continuing disclosure undertaking shall be limited to the right to obtain specific enforcement of the City's obligations in this continuing disclosure undertaking and any failure by the City to comply with the provisions of this continuing disclosure undertaking shall not be a default with respect to the Notes under the Ordinance. UNDERWRITING The Underwriter has agreed, subject to certain conditions, to purchase ali of the Notes, if any are purchased, at a price of 99.65% of the par value of the Notes, plus accrued interest from the dated dat~ to the settlement date. The Notes will be reoffered at an average price of 100% of the par value of the Notes, resulting in a underwriting spread of $3.50 per $1,000. Alter the initial public offering, the public offering prices may be varied from time to time. CONCLUDING STATEMENT All estimates, assumptions, statistical information and other statements contained herein, while taken from sources considered reliable, are not guaranteed by the City or the Underwriter. So far as any statement herein includes matters of opinion, or estimates of future expenses and income, whether or not expressly so stated, they are intended merely as such and not as representations of fact. The information contained herein should not be construed as representing all conditions affecting the City or the Notes. Additional information may be obtained directly from the City or the Underwriter. The foregoing statements relating to the Ordinance and other documents are in all respects subject to and qualified in their entirety by provisions of such documents. This Official Statement, starting with the cover page and all subsequent pages, including the appendices, comprise the entire Official Statement, which has been approved by the City. The City has represented to the Underwriter that the portions of this Official Statement directly pertaining to the City neither contain any misrepresentation of material fact nor omit any material fact necessary to understand the financial, economic or legal nature of the City or any information presented herein. 26 APPENDIX A FORM OF LEGAL OPINION (Form of Approving Opinion of Gottlieb, Fisher & Andrews, PLLC, Bond Counsel) February 1, 1998 Mayor and City Council City of Bremerton Bremerton, Washington 98310 Ladies and Gentlemen: We have acted as bond counsel in connection with the issuance by the City of Bremerton, Washington (the "City"), of the notes described below (the "Notes"): $1,250,000 CITY OF BREMERTON, WASHINGTON TAX ANTICIPATION NOTES, 1999 Dated: February 1, 1999 The Notes are issued pursuant to Ordinance No. 4645 of the City (the "Note Ordinance") and other proceedings duly had and taken in conformity therewith. The Notes are issued for the purpose of financing City expenses pending receipt of taxes and other revenue collected by the City and to pay costs related to the sale and issuance of the Notes, all as provided in the Note Ordinance. The Notes are issued as fully registered notes in the denomination of $50,000 each or any integral multiple thereof. The Notes bear interest (computed on the basis of a 360-day year of twelve 30-day months) fi:om their date, payable at the maturity thereof, at the rate of 3.25% per annum, and shall mature on January 31, 2000. The Notes are not subject to redemption prior to maturity. In rendering this opinion letter, we have examined the following: (i) the Note Ordinance; (ii) one executed and authenticated Note (we assume that all other Notes are in the same form and have been similarly executed and authenticated); and (iii) the certified proceedings of the City and other certificates of public officials and representatives of the City which have been furnished to us and which comprise the transcript of proceedings pertaining to the issuance of the Notes (the "Transcript"). City o_f Bremerton, Washington February 1, 1998 Page 3 corporations; such interest received by foreign corporations with United States branches may be subject to a foreign branch profits tax; and such interest received by certain S corporations may be subject to tax. Except as stated in the preceding paragraphs 4, 5 and 6, we express no opinion as to any federal or state tax consequences of the ownership or disposition of the Notes. The Code contains certain requirements which must be satisfied subsequent to the date of issue of the Notes in order to maintain the tax treatment described above in paragraphs 4, 5 and 6, including requirements relating to application of the proceeds of the Notes, use of facilities financed with such proceeds, limitations on income derived from the investment of gross proceeds of the Notes (as defined in Section 148 of the Code), and rebate to the United States Treasury of certain investment earnings on such gross proceeds. The City has covenanted to comply with these requirements, and the opinions expressed in paragraphs 4, 5 and 6 assume such compliance. However, we have not undertaken and do not undertake to monitor compliance by the City with such requirements; and failure by the City to comply with such requirements could cause interest on the Notes and any properly allocable original discount to be included in gross income for federal income tax purposes, and to be treated as an item of tax preference for purposes of the alternative minimum tax on individuals and corporations, and could result in the loss of the partial interest expense deduction available in respect of "qualified tax-exempt obligations" under Section 265 of the Code, in each case, retroactive to the date of issue of the Notes. We have not been engaged to participate in the preparation or review of, or express any opinion concerning the completeness or accuracy of, the official statement or other disclosure documentation prepared or used by any person in connection with the offer or sale of the Notes, and thus express no opinion concerning the completeness or accuracy thereof. Copies of this opinion letter may be delivered to the Owners of the Notes, who may rely on this opinion letter as if it were addressed to them on the date hereof. Subject to the foregoing, this opinion letter may be relied upon by you only in connection with the issuance of the Notes and may not be used or relied upon by you or any other person for any other purpose whatsoever, without in each instance our prior written consent. We expressly disclaim any responsibility to advise you or any Owner of any developments in areas covered by this opinion letter that occur after the date hereof. Respectfully submitted, GOTTLIEB, FISHER & ANDREWS By Judith L. Andrews Jane Towery Vice President Northwest Public Finance January 20, 1999 Honorable Mayor and City Council City of Bremerton 239 4th Street Bremcrton, Washington 98337 Ladies and Gentleman: NationsBanc Montgomery Securities LLC (the "Underwriter") is pleased to present an offer to purchase from the City of Bremerton (the "City")all of its $1,250,000 principal amount of Tax Anticipation Notes, 1999 (the "Notes"), which will be dated February 1, 1999. Principal of and interest on the Notes shall be payable on January 31, 2000, the maturity date of the Notes, at the rate shown immediately below: January 31 Amount Rate Price 2000 $1,250,000 3.25% 100 We will pay you $1,245,625.00 (which is net of the Underwriter's spread of $4,375.00), plus accrued interest, if any, for $1,250,000 par value of Notes. Our offer is subject to the following conditions: 1. The City has the full legal right, power and authority to enter into and perform its obligations under this note purchase contract and under the ordinance authorizing the issuance of the Notes (the "Note Ordinance"), to pass the Note Ordinance and to sell and deliver the Notes to the Underwriter. 2. The approving legal opinion of Gottlieb Fisher & Andrews, PLLC ("Bond Counsel") will be delivered with the Notes. 3. The Notes will be delivered through the facilities of The Depository Trust Company in New York, New York on February 1, 1999, or any other date mutually agreed upon by the City, the Underwriter and Bond Counsel. The City may, as required, close the purchase of the Notes with temporary notes. 4. The City will be responsible for all of the note issuance expenses (other than those for which the Underwriter agrees to be responsible), including, but not limited to: Bond Counsel and fiscal agency fees. 5. Interest on outstanding principal of the Notes will be paid at maturity. 6. Interest shall accrue on the basis of a 360-day year comprised of twelve 30-day months. NationsBanc Montgomery Securities/800 Fifth Avenue, Floor 34/Post Office Box 34662/Seattle, Washington 98124 Telephone (206) 358-8991 / Telefax (206) 358-8818 City of Bremerton January 20, 1999 Page 2 7. The Notes will be issued in fully registered book-entry form as to both principal and interest in the denomination of $50,000 each or any integral multiple thereof. The Notes, will be registered in the name of Cede & Co., as registered owner and nominee of The Depository Trust Company, New York, New York ("DTC"), which will act as securities depository for the Notes. 8. Optional Redemption: The Notes are not subject to redemption prior to maturity. 9. The Underwriter will prepare, on behalf of the City, the preliminary and final Official Statements describing the Notes. The City shall cooperate with the Underwriter in all aspects of the preparation of the Official Statements. The preliminary Official Statement, as of its date, shall be in a form "deemed final" by the City for purposes of SEC Rule 15c2-12 but will be subject to revision, amendment, and completion in a final Official Statement which will be available within seven business (7) days of the note purchase contract signing date. 10. The City agrees to cooperate with the Underwriter to permit the Underwriter to deliver or cause to be delivered, within seven business days after any final agreement to purchase, offer, or sell the securities and in sufficient time to accompany any confirmation that requests payment from any customer of the Underwriter, copies of a final Official Statement in sufficient quantity to comply with paragraph (b) (4) of the Securities and Exchange Commission Rule 15c2-12 and the rules of the Municipal Securities Rulemaking Board. 11. The Underwriter agrees to deliver three copies each of the final Official Statement to all nationally recognized municipal securities information repositories on the business day on which the final Official Statement is available and, in any event, no later than seven business days after the date hereof. The City agrees to provide continuing disclosure pursuant to the Securities and Exchange Commission's Rule 15c2-12, as amended, which is included as an undertaking in the Note Ordinance. 12. The City shall deliver to the Underwriter, at the time of delivery of the Notes, a certificate, substantially to the effect that from the date of the City's acceptance of this note purchase contract to the delivery date of the Notes: (a) the Official Statements contain no untrue statement of a material fact nor state any material fact necessary to make the statements therein, in light of the circumstances under which the statements were made, not misleading in any material respect; (b) to the best of the City' s knowledge, the City has not incurred any material liability, nor has there been any material adverse change in the operations or financial condition of the City, nor in the general economy of the City, except as described in the Official Statements. 13. If, prior to the closing date of the Notes by the Underwriter, the interest receivable on the Notes becomes taxable, either directly or indirectly except as described in the preliminary Official Statement, by the terms of any federal income tax law, the Underwriter may, at its option, be relieved of the obligation to purchase the Notes. 14. Immaterial changes to the preliminary Official Statement and the final Official Statement as of their dates will not provide a basis for removal of this offer. 15. This offer is submitted for acceptance by the City on January 20, 1999 at a meeting of the City Council of the City duly held. 16. Details of this offer may be altered by mutual consent of the Underwriter and the City to accommodate the needs of the City. City of Bremerton January 20, 1999 Page 3 Respectfully submitted, ,~?.~owe~ - /~ I~onsBanc Montgomery Sed~ities kkC Accepted this 20th day of January, 1999 City of Bremerton, Washington By: AGENDA BILL BREMERTON CITY COUNCIL 1. SUBJECT: FOR AGENDA OF: January 20, 1999 Ordinance Number . SR304 Transportation ORIGINATING DEPT: PW&U Engineering Div. Improvement Project-Naming the New Roadway ORIGINATOR: Randy Witt, City Engineer Alignment east of First Street "Charleston Boulevard" DATE SUBMITTED: January 7, 1999 ,/? 2. CLEARANCE S: (comment on ba¢}/,)~n~sa~,,.-,~ ,.~ ,--~, 3. EXHIBITS Director, Public Works/Utilities '-'P"x"y~ "~ ." A. 1. Map City Attorney ../'3:'_~._~~~"- 2. Ordinance Heard at City Council Study Session6f 3~afi6ary 2~, 1999 3. Fall 1998 Gateway News Coupon ZNDORSEMENT )<' RMATION APPROVED BY COUNCrL PRESDENTJ; O P :Sm3 AL: MAYOR~---~- COUNCIL PRESIDENT /'~/5 ~ 4. SUMMARY STATEMENT AND REQUIREMENT FOR COUNCIL ACTION: One of the main features of the SR304 Transportation Improvement Project is the construction of a new roadway alignment south of First Street. This new alignment crosses Callow Avenue, Wy¢off Avenue and Cambrian Avenue and, as such, requires that a single street name be established for its use. The development of the new street name was assigned to thc project Citizen's Landseap~.lC~ittee. The Committee unanimously recommended that "Charleston Boulevard" be the name of the new roadway e, Ua~of First Street to SR3 Interehan§e. City Staff then solicited community input on the name through a City Council meeting presentation, Inside Bremerton presentation and a coupon in the Fall 1998 Gateway News. Community response overwhelmingly supported the use of "Charleston Boulevard". The roadway name will be implemented as the new street clements are constructed. Because of the limited access features of the project, only Kitsap Transit will have direct access onto the new roadway, and will be required to change their address. Staff supports passage of the attached ordinance naming SR304 from First Street to the SR3 Interchange to "Charleston Boulevard". 8. RECOMMENDATION: That the City Council (approve upon first reading/pass upon second reading) the attached Ordinance Number establishing a new name for State Route 304 from First Street to the SR3 interchange as Charleston Boulevard. 9. RESPONSIBLE OFFICIAL: City Engineer ENFORCEMENT OFFICIAL: City Engineer EXPIRATION DATE: None REVIEW DATE: None 10. NOTICE OF ACTION PULLED TABLED APPROVED DISAPPROVED COUNCIL DIRECTIVE 11. AGENDA BILL NO: <~<~ - 0 1 5 2. CLEARANCE COMMENTS: 5. IMPACT ON NON-PASSAGE: A new roadway alignment requires a new street name because it crosses several streets. Should the Council not pass the attached ordinance at this time, consideration of a street name will need to be made again at a future date. 6. IMPACT ON STAFFING, BUDGETS, FACILITIES, EQUIPMENT OR OTHER RESOURCES: No impact on staffing budgets or facilities. 7. RESEARCH SOURCES AGENDABI~99006 ORDINANCE NO. An Ordinance naming the new State Route 304 (SR304) roadway alignment from eas~ of First Street to the State Route 3 (SR3) interchange "Charleston Boulevard". WHEREAS, the City is the lead agency in the reconstruction of (SR304); and, ~, WHEREAS, the reconstruction of SR304 includes establishment of a new roadway alignment caat of First Street to the SR3 interchange; and, WHEREAS, the new roadway alignment needs to have a single name to eliminate public confusion and provide for public safety; and, WHEREAS, the project Citizen's Landscape Committee unanimously recommended the name "Charleston Boulevard" for SR304 east of First Street; and, WHEREAS, the Bremerton community response to the proposed name overwhelmingly supports the use of"Charleston Boulevard" for SR304 east of First Street; now, therefore, The City of Bremerton does hereby ordain: 1. That SR304 from First Street to the SR3 interchange be named Charleston Boulevard. 2. That the new Charleston Boulevard street name be implemented with construction of the new street and implementation of the limited access features of the SR304 Transportation Improvement Project. APPROVED on first reading by the City Council of the City of Bremerton this day of ., 1999. PASSED on second reading by the City Council of the City of Bremerton this day of ., 1999. Mike Shepherd, Council President APPROVED this ~ day of ., 1999. Lynn S. Horton, Mayor ATTEST: Kathleen L. McCluskey, City Clerk (g) ~o-zoo~ ~s~o3 I  831NI IOOZ-OOO~oooz_66619NIdV2SONV~lSN03 ~,~¢X 39~p~/C~S 66-~66~ 03V '~'0'~ ' .' (( 66-B661 NOlS30 ) //7 i (~ 3S~Hd) 66-~66~ NI NOI13~1SN03 133C0~d ~S flNV g31N3O NOIIVJ~OJSNV~I NOl~J~2~B HII~ 31~1~00~ 221~ ,d ' (g 3S~Hd) ~3~ 7~N1~31 NOI,On~,SNO~ a]aNn SNgd '0'1' IN3~dOqA30 9NIQN~9 ~I~9ONIS ir g C m posed the name "Charleston Boulevard", honoring the rich history of this neighborhood that xvas once a city. Before any' decision is made about a name, the City wants to know what you think. Use the coupon below to tell us your opinion, or call the Project Holline at 478-4033 and leave a message. Changing the street name will be relatively painless. There won't be any homes or businesses, except for Kitsap Transit, fronting the new boulevard, so no one will have to change their address. Check Ail that Apply! Name: [] Keep me informed - make sure my name is on the mailing list [] Contact me - I'm interested in getting involved Address: [-] Remove my name from the mailing list [] Correct my name/address on the mailing list [] I like the name "Charleston Boulevard" Phone: [] I have another suggestion for the street name E-mail: [] I don't like the name "Charleston Boulevard" If you have additional comments or [] See my suggestions or comments on separate sheet suggestions, please include them . on a separate sheet of paper. ~ r2~'~-r,r, = NORTH~ r~ ~ ~-~ "z~'.J: "':> ['~ - - - ~ _ Arrows m point to > .? ,, L)-> ,, cb u ~ -. :....., -- ¢ .,} :~ :.JLt?.,.. -[.j _, -- sites set aside for '-.~, ~ ' c~:. r,~ ~ ' " ..... :: public design _ ~ _, ............ ~ , .N;(~ _ ..; . ,~ -._ L._U ~ f'~ ~:'P~ ~" ........... ~%:~':=~-- ~ -----~ ~- '-, ...... '- "~ X . · ,-. J. ...... r _ ' '~,:_ ' '~ / I i ; ' ( ~ ~5 - ..-'- - '.' '( 5-=-=-- ~ '~ ':==-~ '--=z= ~, .~ ::.-.'~ ~: ..:L-~__ - ~--- ~- -~ ---- O~ AGENDA BILL BREMERTON CITY COUNCIL 1. SUBJECT: ~~ FOR AGENDA OF: January 20, 1999 PUBLIC HEA/~ING/RESOLUTION # DEPT. OF ORIGIN: DECD - Planning ACTION: Special Use Permit for day ORIGINATOR: Jot Helen care center for up to 41 children. DATE SUBMITTED: October 30, 1998 APPLICANT: Emmanuel Apostolic Church LOCATION: 1023 6th Street 2. CLEARANCES: (Comment on back if necessary) 3. EXHIBITS: DECD Director : ~?/~'J/' CC Resolution No.~&~ ~ ~J-~'-~~ ~~ Notice of Public Hearing. Fiscal & Budget Comm PC Resolution No #98-08. ~~//_~,~ PC Minutes (12/22/98). PC Findings of Fact & Operations Committ ~ _. Conclusion. / Special Use Permit Application. -~ Letter of Complaint. ENDORSE NT V IN O T ON PRO D COUNCr P SIDENT 4. SUMMARY STATEMENT AND REQUIREMENT FOR COUNCIL ACTION: Council must decide if the applicant's Special Use Permit Application (SUP98-0017) meets the necessary tests and criteria required for approval of this day care center use. 5. RECOMMENDATION: Planning Staff and the Planning Commies^ion both recommend that the Special Use Permit be approved~ ~~ ~ ~~ ~~ ~ ~~c4~ 6. RESPONSIBLE OFFICIAL: Jot Helen ENFORCEMENT OFFICIAL: EXPIRATION DATE: REVIEW DATE: PULLED TABLED AJPPROVED DISAPPROVED ._. ~4EN~ ~ COUNCIL DIRECTIVE: DA~'~__~ ~ ~ 8. AGENDA BILL NO.: ~q-0[& 9. CLEARANCE COMMENTS: The Commission in its review determined that three proposed conditions: days of operation, hours of using the play area, and supervision of the play area were not needed. 10. IMPACT OF NON-PASSAGE: The applicant would be unable to have a day care for more than 12 children. 11. IMPACT ON STAFFING~ BUDGETS, FACILITIES, EQUIPMENT OR OTHER RESOURCES: Additional staff resources might be required to review final revised plans and permits. 12. RESEARCH SOURCES: Zoning Ordinance File Site Visits Institute of Transportation Engineers Trip Generation Manual Relevant State Laws BREMERTON CITY COUNCIL RESOLUTION NO. ~8~ A CITY COUNCIL RESOLUTION APPROVING THE EMMANUEL APOSTOLIC CHURCH APPLICATION FOR A SPECIAL USE PERMIT (SUP98-0017) WffEREAS, the Emmanuel Apostolic Church requested a Special Use Permit for a day care center at 1023 6a~ Street; and WffEREAS, the Bremerton Planning Commission conducted a public meeting on December 22, 1998 during which it received oral and written comments pertaining to the subject application; and WItEREAS, the Bremerton Planning Commission recommended approval of application SUP98-0017 without conditions; and WffEREAS, the Bremerton City Council conducted a public heating on January 20, 1999 during which it received oral and written comments pertaining to the subject application; NOW, T[IEREFORE, BE IT RESOLVED, that the Bremerton City Council concurs with the Bremerton Planning Commission's findings in support of the use request and affirms that: 1. The proposed use is needed in the community to provide day care services in this area, and is in the public interest. 2. The proposed use does meet the necessary tests and criteria required for approval of a Special Use Permit. BE IT FURTRER RESOLVED, that the Bremerton City Council hereby approves application SUP98-0017. PASSED by the City Council of the City of Bremerton this .day of ,1999. MIKE SHEPHERD, President Bremerton City Council APPROVED this day of ,1999. LYNN S. HORTON, Mayor City of Bremerton ATTEST: PAULA JOHNSTON, Deputy City Clerk CITY OF BREMERTON · 239 4th Street ° Bremerton, WA 98337 NOTICE OF PUBLIC me~ARING Bremerton City Council The Bremerton City Council will conduct a public heating on the following item during its regular meeting on Wednesday, January 20, 1999 which will begin at 6:00 PM in the City_ Council Chambers of the Bremerton City Hall, 239 4m Street, Bremerton, WA. SUP98-0017 - Special Use Permit for Day Care Facility at the Emanuel Apostolic Church at 1023 6th Street. Applicants requests using two renovated first floor rooms in an existing church building for day care facility for up to 41 children. All interested persons may appear and provide testimony on the matter. The Department of Economic and Community Development, located at 286 4~ St., Bremerton, WA 98337, will receive written comments and other exhibits on the above item up to 5:00 PM on the day of hearing. Written comments and other extfibits may also be submitted to the Council prior to the close of the public hearing. Staff reports and copies of pertinent materials can be obtained from the Department of Economic and Community Development. Staffreports will be available by 5:00 PM on January 13, 1999. Call James Coombes at (360) 478-5845 for additional information. Celebrating 50 Years of Freedom · BREMERTON PLANNING COMMISSION RESOLUTION//98-08 A PLANNING COMMISSION RESOLUTION APPROVING THE EMMANUEL APOSTOLIC CHURCH APPLICATION FOR A SPECIAL USE PERMIT (SUP 9S-0017) WHEREAS, the Emmanuel Apostolic Church requested a Special Use Permit for a day care center at 1023 6th Street; and WHEREAS, the Bremerton Planning Commission conducted a public meeting on December 22, 1998, during which it received oral and written comments pertaining to the subject application; NOW, THEREFORE, BE IT RESOLVED, that the Bremerton Planning Commission makes the following findings in support of the use request: 1. The proposed use is needed in the community to provide day care services in this area, and is in the public interest. 2. The proposed use does meet the necessary tests and criteria required for approval of a Special Use Permit. BE IT FURTHER RESOLVED, that the Bremerton Planning Commission hereby approves application SUP 98-0017. APPROVED: Bill Robinson, Chairman Date o~'~I$1a~,' Secretary Date Draft 3dinutes for Approval Planning Commission Meeting December 22, 1998 L Roll Call Those present were: Chairman Robinson, Commissioners Boyd, Dingfield, Stone, Griggs, Wolfe. Commissioner Adams had an excused absence. Quorum certified. H. Call to Order The meeting was called to order by Chairman Robinson at 6:00 p.m. IlL Approval of the Agenda Motion by Commissioner Stone to approve the agenda as presented. Seconded by Commissioner Boyd. Agenda approved. Public Hearing No public heatings presented. V.. Approval of the November 17, 1998 ~91inutes A motion was made by Commissioner Dingfield and seconded by Commissioner Wolfe to approve the minutes of the November 17, 1998 meeting as presented. Question called: Boyd, yes; Stone, yes; Dingfield, yes; Griggs, yes; Wolfe, yes; Robinson, yes. Motion passes. VI. Call to the Public No public comment. [/71. Director %. Report Nothing to report. Planning Commission Meeting December 22, 1998 Page 1 of 6 Study Session No study session presented. LY. OM Business. Nothing to report for subcommittee. New Business. 1. Special Use Permit for a day care facility at the Emmanuel Apostolic Church, 1023 6th Street (SUP 98-0017). Mr. Jon ltolan presented the staff report. This is being presented as a public meeting, rather than a public hearing, based on the requirements in the Bremerton Municipal Code. The Planning Commission's recommendation will be forwarded to City Council for a public hearing. The Emmanuel Apostolic Church has applied for a Special Use Permit to operate a day care facility for 41 children, ages 18 months to school age, in two rooms on the first floor of the church. The day care would be operated Monday through Friday. Staff has conducted a review of the proposed use with various City departments, and there were no relevant comments received. The analysis based on the criteria for approval is that the day care facility is substantively consistent with the Comprehensive Plan. The plan encourages a variety of uses, including social services; thus the plan for a daycare is supported by the plan policy and would be considered appropriate. The applicant must also comply with ail applicable development standards and requirements. With regards to parking, the ordinance requires one space for every five children, which is a total of eight spaces for this proposal. These additionai parking spaces are provided on the lot adjacent to the church site and would be available to the day care facility Monday through Friday, and would aiso be available for services at the church on Sunday. A condition has been proposed to limit the daycare operation to Monday through Friday so as not to have any impact on the parking availability for church services. ~Mr. Holan noted the City had received a letter from an adjacent property owner regarding increased traffic in the alley. Based on information obtained from the Institute of Transportation Engineers, it is estimated that there would be approximately 8.3 trips per day each morning and afternoon, for a totai of 16.6 trips. Staffbelieves the additional traffic would not create a significant problem within the alley. The use is compatible with the surrounding neighborhood. The neighborhood is commercial to the north and east, and single family residential to the south and west. There is another church with a school one block west of this proposed site. This area is zoned high density residential, though many properties are currently single family residences. Day care facilities are allowed in this zone if approved via the Special Use Permit process. One aspect of the day care facility is the Planning Commission Meeting December 22, 1998 Page 2 of 6 provision for a 900 square foot fenced play area. There are two concerns that staff had with this. One concern is the potential noise compatibility with existing single family residences in the area, and the other is a safety concern. Staffhas proposed two conditions: 1) the outside play area would be available from 8:00 a.m. to 5:00 p.m., which is based on normal working hours. Staff also recommends the day care operator would provide adult supervision in the play area at all times during use of the area. Staffbelieves the proposed use is needed in the community and that it is in the public interest to have this type of facility in the community. Further, the proposed use does meet the necessary tests and criteria for approval of this Special Use Permit. Staff recommends the Planning Commission adopt Resolution 98-08, recommending approval to the City Council of Special Use Permit with associated conditions. Commissioner Robinson asked if there was any additional testimony received, other than the one letter provided in the Planning Commission packet, to submit to the Planning Commission. Mr. l:lolan indicated that no other testimony had been received in this matter. At the time of application submittal, stafftold the applicant that notice would be sent to adjoining property owners and if there were any concerns, the permit would be presented as a public hearing item. Only one letter was received by staff. Chairman Robinson asked if the applicant would like to make any comments to the Planning Commissioners. Larry Robertson, Pastor of the Emmanuel Apostolic Church, wished to thank the Planning Department stafffor their work in processing the application. He also stated that approval of this application will allow the church to ~ve a quality of child care that is greatly needed and that jobs will be created. Pastor Robertson asked if the Planning Commissioners had any questions for him. Chairman Robinson said that the commissioners would have questions for him, but would need to ask if there was anyone present who was opposed to this application. Public Comment There was no public comment given. Commissioner Wolfe asked how many people were in the congregation and approximately how many children would be using the proposed day care facility? Pastor Robertson said that there are approximately 300-350 church members and that there would be space for 41 children at the daycare. He also indicated that people have been calling the church already and asking them to reserve spaces in the daycare for their children, although the church is not advertising for the daycare. This daycare would be state-of-the-art. They have been working with the state agency in Olympia regarding codes, have talked with an architect, and feels that this would be a daycare facility that the church and also the City would be very proud of. He feels they would be adding to the quality of life of the people who use this facility. Planning Commission Meeting December 22. 1998 Page 3 of 6 Commissioner Wolfe wanted to thank the large number of people present who had come in support of the project. Chairman Robinson closed the meeting to the public and opened it for Planning Commissioner's comments. He informed Pastor Robertson that the commissioners would be making a recommendation to the City Council, and that the City Council would conduct the official hearing and will vote and make their decision on the matter. Commissioner Dingfield asked if Pastor Robertson could explain what some of the enhanced landscaping might be, as indicated in the application packet. Pastor Robertson said that trees would be planted to help in terms of noise and privacy. Commissioner Stone stated that Pastor Robertson should be commended on the enthusiasm and sincerity of the supporters that were present at the meeting. He felt it was very impressive. Mr. Stone wanted to comment on the one letter that was received with concerns about the proposed daycare. Mr. Stone felt that the items listed in the letter had all been addressed during the staff' report and through Pastor Robertson's comments. Commissioner Boyd indicated that she had been involved with Head Start in the past and wondered what type of staff he would be hiring, how many, and what type of training would they have. Pastor Robertson answered that the number of staffwould be determined by the number of children enrolled at the daycare. He is hiring a consultant who will assist him with all aspects of hiring personnel, purchasing equipment that would be functional and also meet state requirements, and how to market the daycare. He will require that staff have a degree related to child care. He anticipates h/ting the very best applicant possible. He is looking for someone who has a deep desire to work with children. Commissioner Griggs asked what type of fee would be charged to use the daycare. Pastor Robertson responded that daycare tees are one of the items the consultant will be recommending to him. He wants to ensure that low-income families are taken into consideration, and also working with a sliding scale for fees. Commissioner Dingfield noted that the application shows the daycare being occupied Monday through Friday only. She asked if Pastor Robertson saw a time where he might have a need to open it during the weekend? Pastor Robertson said that he certainly sees a need for this, but currently they are asking for Monday through Friday only. Child care is needed at all times, all days of the week. Commissioner Dingfield feels that there is a need for weekend service, and she would like Pastor Robertson to consider, at some point, 24-hour service. Planning Commission Meeting December 22, 1998 Page 4 of 6 q4 Mr. Holan commented that if there were changes to be made to the conditions, that this certainly is the time to discuss those changes. Chairman Robinson asked if the play area was fenced. The findings mention that a paved parking lot for 12 vehicles would be required. Would the church still have enough property to meet this requirement? Pastor Robertson indicated that the play area was fully fenced-in. Regarding the parking area, they would be able to provide more than 12 parking spaces if needed. Commissioner Stone asked if there was a reason for the Monday-Friday limitation on the staff report. Mr. Holan answered that the staff was looking at the issue of potential parking conflicts between the daycare facility and the church services on Sunday. Pastor Robertson feels there is plenty of parking available. He felt that the staff was also looking at the noise level. Mr. Holan responded that the noise issue is more related to the hours of use of the outside play area. Commissioner Dingfield asked if the conditions could be reconsidered. Most day cares are open until 6:00 p.m. She also wondered why these additional conditions were put on this application, and perhaps the zoning ordinance itself would be more applicable. State law is pushing for quali~ daycare and the regulations surrounding daycare are very strict. She felt that the word "adult" could be removed from the condition regarding adult supervision. There are many local schools that have excellent training in early childhood development. Students from these schools could possibly volunteer at the daycare facility, but may not necessarily be an "adult." The state is very restrictive on all requirements for operating a daycare and if the state deemed a teenager qualified to supervise the play area, then the City should be able to work within the state requirements. Pastor Robertson added that they will be following the state guidelines and would be staffing with personnel that had passed all requirements through the state or through the school they were enrolled in. Chairman Robinson asked if Pastor Robertson had any difficulty with the word "adult" in the condition? Pastor Robertson said that the church's overall mission for the daycare is to give people an opportunity to interface with the children to help their growth. The state requirements are so strict that by following them, there should not be any problems with any staff member they have supervising the outdoor play area. Planning Commission Meeting December 22, 1998 Page 5 of 6 A motion was made by Commissioner Dingfleld to adopt Resolution 98-07 approving the Emmanuel Apostolic Church application for a Special Use Permit for a day care center at 1023 6th Street, without staff's recommended conditions. Seconded by Commissioner Boyd. Question called: Boyd, yes; Stone, yes; Dingfield, yes; Wolfe, yes; Griggs, yes; Robinson, yes. Motion passes. Chairman Robinson informed Pastor Robertson that he would be notified when the City Council would be hearing this application. 2. Election of Planning Commission officers for 1999. A motion was made by Commissioner Stone to elect Commissioner Joan Dingfield as Chairman of the Planning Commission for 1999, and to elect Commissioner Jerry Griggs as Co-Chairman. Seconded by Commissioner Boyd. Question called: Boyd, yes; Stone, yes; Dingfield, yes; Wolfe, yes; Griggs, yes; Robinson, abstain. Motion passes. XI. Adjournment Meeting adjourned at 7:00 p.m. Respectfully submitted by: Pattie Haas, Recording Secretary Approved by: Bill Robinson, Chairman Planning Commission Meeting December 22, 1998 Page 6 of 6 CITY OF BREMERTON BREM£RTON PLANNING COMMISSION FINDINGS OF FACT & CONCLUSIONS OF LAW REGARDING: Prepared by: James Coombes SUMMARY 1, Applicant: Emmanuel Apostolic Church 1023 6~ Street Bremerton, WA 98337 2, Location: 1023 6~ Street 3. Tax Assessor's Lot No.: 3718-024-027-0008 4. Attachments: o SUP Application o Comprehensive Plan Map o Zoning Map o Site Plan 5. Comprehensive Plan Map: High-density Residential (HDR) 6. Zoning: High-density Residential (MR) FINDINGS 1. Property & Development: The subject property is 110 ft. by 102.96 ft. lot on the south side of 6th Street, between Warren Avenue and Chester Avenue, in the 'MR' zone. The site contains an existing two story church building and paved parking lot for 12 vehicles. Lots adjacent to west of the property contain three single story existing houses with additional accessory parking and a play area designated for the proposed day care. 2. Surrounding Land Uses: West & South: Residential and office. North: Business and residential. East: Business. 3. Requested SPECIAL USE: The applicant requests a Special Use Permit (SUP) to operate a day care center for 41 children aged 18 months to school age, in two rooms totaling approximately 1600 square feet, on the first floor of the existing church, in a High-density Residential (MR) zone. The applicant has indicated that the day care would be operated Monday through Friday. The church is currently being extensively renovated. The application is being processed non-administratively because of a letter received from a neighboring property owner protesting the day care use. BMC 21.02.905( c ) states in part: mA SUP that may have significant impacts beyond the immediate site, that is of neighborhood or community-wide interest, or that may be of a sensitive or controversial nature, may be classified a Non-administrative SUP by the Director and processed as a type III application." 4. Comment Survey: The application was routed to various City Departments for review and comment. No relevant comments were received. CRITERIA FOR APPROVAL Bremerton Municipal Code (BMC) 21.02.905 ADMINISTRATIVE SPECIAL USE PERMITS, [d] "Criteria for Administrative Special Use Permits" states that the Director of Community Development may approve a Special Use Permit only if all of the following are true: 1. Is the proposal substantively consistent with the Comprehensive Plan and either desiqnated "SUP" in the Zoninq Ordinance, or is beinq processed ag an "Unlisted Use"? YES. The day care use is substantively consistent with the Comprehensive Plan. Element B5 of The Plan, The Vision For Bremerton, Human Development/Education, encourages a variety of needed social services to help children within the community. Thus, the proposed use is supported by Plan policies and would be considered appropriate for the area. 2. Will the proposal be consistent with all applicable development standards and requirements, includin.q the availability of all needed utilities and services? YES. The applicant must comply with all applicable development standards and requirements for this substantially renovated church with day care facility. All needed utilities and services are current provided to the existing church. The zoning ordinance requires one space for every five children, which would require eight (8) for the proposal. These additional parking spaces for the day care are provided on the adjacent lot to west of the church. These spaces would be available for church service use on Sunday, since the day care is intended to operate Monday through Friday. To insure this, a condition is proposed to limit the day care operation during these days. 3. Will the proposal, alon~ with anv miti(~ation measures or other conditions of approval, avoid significant adverse environmental consequences? YES. Though there has been concern expressed by an adjacent property owner regarding increased traffic in the alley (see attached letter), the access to the church parking lot via east bound lane of 6~h Street to the north, and the adjacent alley to the south, do not appear to present significant environmental consequences. Using Institute of Transportation Engineers estimates of vehicular trips per day, the day care use would generate an additional 8.3 trip per day both in the morning and afternoon. The additional traffic would not create a significant traffic problem for the alley. 4. Will the proposal be compatible with adiacent uses and surrounding nei.qhborhood? YES. The surrounding neighborhood is commercial to the north and east, single-family residential to the south and west. There is another church 3 with school one block west. However, the zoning designation for the area is High-density Residential, though many properties remain single-family use. This zone allows some mix of compatible non-residential uses. Mixed use developments are encouraged and day care facilities are allowed in the zone district if found, through a Special Use Permit, to be appropriate for the specific location. Another issue is the provision for a play area. An approximate 900 square foot, fenced play area is indicated on the site plan adjacent and west of the church. The play area is separated from 6th street by an existing house and from the alley by an existing garage, but would be adjacent to the existing single-family uses. The play area represents a potential noise compatibility issue with the existing uses. Further, the play area for the children could present a potential safety issue if not properly supervised. Thus, staff is proposing two conditions to address the noise and safety issues. 5. Does the proposal comply with all other criteria or desiqn ,quidelines that are applicable to the specific use or type of development? YES. The proposal must comply with all other criteria or design guidelines associated with this type of use, including the Uniform Building Code, Uniform Fire Code, and State licensing for day care centers. The applicant has shown substantial compliance with zoning requirements by applying for a Special Use Permit and addressing the five (5) necessary criteria. CONCLUSIONS 1. The proposed use is needed in the community, to provide day care services in this area, and is in the public interest. 2. The proposed use does meet the necessary tests and criteria required for approval of a Special Use Permit. DECISION OF THE PLANNING COMMISSION Based on the record developed, the Bremerton Planning Commission recommends approval the Special Use Permit for a day care facility on the first floor of the existing church at 1023 6~' Street, as shown on the attached Site Plan, subject to the following conditions: 1. The day care center shall operate only Monday through Friday. 2. The applicant shall limit the use of the play area for the day care center between the hours or 8:00am to 5:00pm. 3. The applicant or any subsequent operator shall provide adult supervision of the play area at all times during the use of the area by the day care center. Bill Robinson, Chair Date Bremerton Planning Commission 5 .% . . , ~r .... .: . . · -'. - ~"L-,~-%: ~"~' - ~= · '" . - " .'-- ' " of Breme on OcT 3 o Special Use Permit BREMERTON Application ~U~L~.S DEPARTUENT ***Please provide 5 copies of Applicatioa and site plan*** Special Use Permit - BMC 21.02.905 l Special Use Permit may be approved for a land use that is not specifically listed in the Land Use Tables of Chapter V as an "Allowed Principal Use" or an "Accessory Use", and for uses that are listed as "SUP" (Special Use Permit required). Instructions Please complete the following application with as much detail as possible about your proposal and submit it along with the application fee. The application must be complete before any processing, can occur. Applicant: ~(,Arx/ /~ cCJ~/~ A'tA-- Address: /[o N O ~T~- 'T'3 '~ ~7-, PhoneNumber: <~ ~4~L% ~ 1~$ - o4-'~o Contact Person (if different than applicant): Address: Phone Number: Title Holder (if different than applicant): Address: Io z. 5 & +~ .~TW~.z-r'- Phone Number: Page 1 of 3 Revised on I 1/I 7/97 8:30 AM C:W£y Documentsk~pe~al Use Permit. doc Site Address (location): Tax Assessor's Parcel #: Zoning Designation: Parcel Size (property dimensions): Legal Description (aUacb ex~ra sheet if' necess~j): Special Use Requested: Proposal (please describe in as much detail as possible the nature of the development): Criteria for Approval: Your requested Special Use Permit can be approved only if all of the following criteria can be answered "YES". 1. Is the proposal consistent with the City's Comprehensive Plan and either desigxmted "SUP" in the Zoning Ordinance, or is being processed as an "Unlisted Use"7 2. Will the proposal comply with all applicable development standards and requirements, including the availability of all needed utilities and services? 3. Will the proposal, along with any mitigation measures or other conditions of approval, avoid significant adverse environmental consequences? 4. Will the proposal be compatible with adjacent uses and surrounding neighborhood9. Page 2 of 3 Revised on 11/l 7/97 8:30 AM C.'~?vfy DocurnentsLgpecial Use PermiLdoc $. Does the proposal comply with all other criteria or design guidelines that are applicable to the specific use or type of development? Please provide below (or on a separate paper) detailed explanations or other information that will assist in the review of your request and that will help show that your proposal meets the above criteria. Applicant's Statement I hereby certify that the statements contained herein are correct. I understand that conditions of approval may be required to adequately protect the zone or neighborhood wikin which the subject use is located, and I agree to abide by those conditions. I understand that the decision on this application may be appealed and possibly overturned. I also understand that an approved Special Use Permit is subject to future review and possible revocation by the City Council for any violation of terms or limitations. I understand that approval of this Special Use Permit may be appealed and possibly overturned by the City Council. I have read, understand, and ag-ree with all of the above statements. cant Date The City of Bremerton does not discriminate on the basis of race, sex, color, religion, national origin, age, or disability in the provision of services, in pro~arns or activities, or employment opportunities and benefits. P. age 3 of 3 Revised on l 1/17/97 8:30 A3d C:~vly Documents~pecial Use PerrniLdoc McCLELLAN ARCHITECTS Special Use Permit Application Emmanuel Apostolic Church 1023 6th Street Bremerton, WA Applicant: Regan McClellan AIA Criteria for Approval: 1) The proposal is consistent with the City's Comprehensive Plan and is designated "SUP" in the Zoning Ordinance. 2) The proposal will comply with all applicable development standards and requirements. a) Parking for the daycare use will be provided for on adjacent lots and on the same side of the street for safety. b) Landscaping areas will be enhanced and enlarged by 380 square feet along 6th street. c) A play area will be provided for at an adjacent lot. d) Access to the daycare and play area will be fi.om the alley side of the building and away from 6th street for additional safety. 3) There will be no adverse environmental consequences of the proposed development. 4) The daycare will be compatible with the adjacent uses and surrounding neighborhood. a) "Star of the Sea" school is one block from the proposed development b) Currently there is no public daycare available in this area of Bremerton c) The daycare will provide a much needed service in this area of Bremerton 5) The proposal will comply with all criteria and design guidelines that are applicable to a daycare service. a) Daycare planning is coordinated with the City of Bremerton Building Department, Fire Department,. and Department of Public Works and Utilities. b) Daycare planning is coordinated with DSHS, represented by Ms. Lowest Jefferson. 110 N. 77TH ST. SEATTLE, WA 98103 PH:206.783.7341 FX:206.781.4857 "'""' '""' L~-[fl NVld 3J_IS 5980 Su~set Ave. N.~o Bremerton, WA 98311 November 7, 1998 City of Bremerton Department of Community Development 286 Fourth Street File ~ SU798-0017 As property owners directly across the alley from the church we highly protest the proposed day care. This protest is for the following reasons: 1. The lack of safety for the children attending the day care; no safe place for the children to play or do outside activities. 2. Conjestion due to additional traffic in the alley. 3. Lack of parking; no parking on sixth street; limited parking in the alley and around the church. 4. The negative impact on the entire neighborhood. Jim Richardson Terry Richardson