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HomeMy WebLinkAbout07/28/99 AGENDACITY COUNCIL AGENDA JULY 28, 1999 PRE-COUNCIL SESSION: 5:00 - 5:30 P.M. · General Council Business CALL TO ORDER: 5:30 P.M. · Pledge of Allegiance · Invocation 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 - July 7, 1999 #AB99-143 B. Change Order No. 1 for SR304 Transportation Project, #AB99-144 Burwell Street Improvements C. Change Order No. 2 for SR304 Transportation Project, #AB99-145 Asbestos Removal No. 3 Contract 14 CLAIMS/CHECK REGISTERS COUNCIL MEMBER REPORTS MAYOR'S REPORT LEGISLATIVE REPORT PUBLIC RECOGNITION -- (Comments Limited to 3 Minutes) NEW BUSINESS A. Habitat for Humanity Easements B. Professional Services Agreement for Anderson Cove CSO Pump Station CW-2 Modifications with Casne Engineering, Inc. C. Fluoridation Equipment Disposition #AB99-146 #AB99-147 #AB99-148 (CONTINUED ON BACK) 10. ORDINANCES A. Ordinance No. 4662 (Second Reading) Authorizing the Issue of General Obligation Bonds to Refinance the Olympic Course at Gold Mountain Golf Complex, and Accepting the Purchase Offer of Seafirst Bank #AB99-138 11. PUBLIC HEARING - 6:00 P.M. OR LATER A. Appeal of an Administrative Interpretation of a Side Yard Setback at 2111 Madrona Point Drive #AB99-149 12. ADJOURNMENT OF MEETING AGENDA BILL BREMERTON CITY COUNCIL !. ~U_~: FOR AGENDA OF: JULY 28, ]999 ORIGINATING DEPT: C ~ TY COUNC ~ t M~NUTE5 OF MEETING -- JULY 7, ]999 ORIGINATOR: DATE SUBMITTED: MIKE SHEPHERD~ PRESIDE JULY 22, 1999 2. ~: (comment on back 3. EXHIBITS: if necessary) 4. $~Y STATEI~NT h/qD REOUIREM-ENT FOR COUNCIL ACT!QN: 8. RECOMMENDATION: o RESPONSIBLE OFFICIAL: ENFORCEMENT OFFICIAL: EXPIRATION DATE: REVIEW DATE: PULLED TABLED COUNCIL DIRECTIVE: !0. NOTICE OF ACTION APPROVED DISAPPROVED DATE: 3DED !1. AGENDA BILL NO: TAPES #1628 & #1629 UNAPPROVED DRAFT CITY COUNCIL MEETING MINUTES July 7, 1999 The regular meeting of the City Council of the City of Bremerton was called to order in the City Council Chambers, 239 4t~ Street, Bremerton, Washington, Wednesday, July 7, 1999, at 5:30 P.M., with Council President Mike Shepherd presiding. Council members present were Jim Reed, Carlos Montgomery, Carol Arends, David Farr, Lon Overson, John Law, Cecil McConnell, and Wayne Olsen. Also present were City Attorney Glenna Malanca, Deputy Clerk Paula Johnston, and Legislative Assistant Lori Smith. The meeting opened with the Pledge of Allegiance led by Council President 8hepl~erd and invocation given by Pastor David Wheeler of Silverdale Community Church. President She_oherd made the following announcements: (1) City Council held .a Study Session prior to the meeting to discuss general Council business; (2) The Study Session scheduled to follow the City Council Meeting tonight to discuss "HOME Fund Allocation for Home Ownership" has been cancelled; (3) On Monday, July 12, 1999, City Council will hold their Monthly Study Session, 5:00 - 6:45 P.M. in the Council Chambers to discuss 1 ) Plans for reconfiguration of the Seattle Ferry Terminal at Coleman Dock with Tim King, Planning Manager for the Seattle Ferry Terminal Project; 2) Construction Project Updates with Randy Witt, City Engineer; and 3) Legal Department Updates with Glenna Malanca, City Attorney; and (4) City Council will hold an additional Study Session immediately following the Monthly Study Session on July 12, 1999 to discuss "Fluoride Equipment Disposition", also in the Council Chambers. CONSENT AGENDA A. Minutes of Meeting - June 21, 1999 #AB99-120 #0011 M/S/C (McConnell/Montgomery) Motion to approve the Consent Agenda as presented. Vote on motion: In favor: Olsen, McConnell, Overson, Fart, Arends, Montgomery, Reed Abstain: Law, Shepherd 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. #0035 M/S/C/U (Montgomery/FarO On July 7, 1999, the Council does approve for payment those vouchers included and further described as follows: 232161-232163; and 232219- 232292 in the amount of $734,590.80; and Regular Payroll in the amount of $977,581.63. COUNCIL MEMBER REPORTS Mr. Olsen reminded the public that the YWCA Community Center Open HOuse will be held Thursday, July 22 from 3:30 to 7:30 P.M. at 905 Pacific Avenue. TAPES #1628 & #1629 City Council Reg. Mtg. Minutes July 7, 1999 Page 2 of 7 Mr. McConnell asked any members of District #1 and #2 who would still like to attend combined District 1 & 2 meetings, to please contact the Council office at 478-5280. Mr. Law announced the next Distdct #3 meeting would be held September 21, 1999. Mr, Over$on announced the next Distdct #4 meeting would be held in August. He also asked citizens to contact the Council office at 478-5280 with any comments and concerns regarding the new entry into the City and the City's Animal Control Department. Mr. Farr reported he was at the Charleston Avenue Cinema on Callow during the recent earthquake, and was happy to report the renovated building "survived" the quake well. Mrs. Arends provided a follow-up report from Animal Control, who received 60 calls after the July 4th holiday. She urged any citizens who have information on lost animals to please report them. She announced the move of Charleston Baptist Church to their new location at 13t~ & Lafayette, and wished them well. All citizens are invited to participate in their moving "celebration" may call 373- 2851 for additional information. President She_oherd stated that while on a recent trip to New Orleans, he had the opportunity to explore their redevelopment efforts, and was astounded to see that they faced many of the similar challenges and obstacles as Bremerton. It was heartening for him to see they persevered and succeeded. He also provided a brief status report on Evergreen Park, and announced the next District #5 meeting on Thursday, July 22, to discuss the grand Re-Opening of Evergreen Park in September of this year. MAYOR'S REPORT - There was no report this evening. LEGISLATIVE REPORT It was announced that a response was provided to Mr. Paul Drnjevic in response to concerns raised at last weeks meeting regarding the fluoride issue. PUBLIC RECOGNITION Tom McDonald commended Mayor Horton, Planning Director Phil Berry, and Councilman David Farr for their efforts in assisting a new business owner to overcome an obstacle, which allowed her to open her business, Fiesta Mexican Restaurant, at 6th & Callow. He invited each of the Council and the Mayor to stop by and enjoy a meal. ROy Runyon stated that regarding the Anderson Creek property, he wanted to know the cost to the City of Bremerton to extend City services to Mr. Sciepko; and what was the total economic development. Don Lar$orh President of Kitsap Diving Association, reported on a list of endangered species currently being considered by the Department of Fish & Wildlife to reiterate his request for an underwater park for Bremerton with protected areas for marine life. Paul Drnjevic reiterated that his questions over the fluoride issue have not been addressed. Ruth Natividad raised several issues over an article printed in The Sun regarding fluoride equipment disposition, and encouraged citizens to attend the Study Session on Monday. TAPES #1628 & #1629 City Council Reg. Mtg. Minutes July 7, 1999 Page 3 of 7 John Becker raised the issue of adding Council Minutes and Council Agendas to the City of Bremerton web page. He also asked that City Council address Paul Drnjevic's concerns, and did not feel there should be any cost in removing the fluoride equipment. President Shepherd responded that the City just funded a contract to update the City web page. Susan Brown thanked Council for passing the Ethics Code for elected and appointed officials, as well as employees. She asked the Council President to respond in wdting to the following questions: 1) What is the time-line for rewriting the Council Rules & Procedures; 2) What is the process to be followed; and 3) What issues will be addressed. 9A - PORT OF BREMERTON WATER SYSTEM ACQUISITION AGREEMENT, #AB99-121 Gene Sam_oley, Director of Public Works, presented a visual of the area in question, and reported that the Port of Bremerton's water system includes system components vital to the City's water supply system. And due to regulatory changes and other considerations, the Port of Bremerton desires the City to own, operate, and maintain the Port's water distribution system including a pump station, a one-million-gallon water reservoir, and associated valves and piping. The City and Port have negotiated the attached water system agreement to convey the Port's distribution system for a total amount of $160,000 payable in cash or in-kind services five years from the date of the Agreement. The Agreement includes provisions for the City owning, operating, maintaining, and planning water system and service to the Port. Also, the Agreement includes provision for standard latecomer fees, payable to the Port, for new connections to the existing system previously constructed by the Port. City Administration considers the attached agreement to be in the best interest of the City and recommends the City Council approves the agreement. Questions and comments from the public: Ruth Natividad questioned if there was a Trenton Water District;, John Becker asked what the City would gain from this agreement after assuming the cost for maintenance of the system; and Paul Drnjevic asked for a current evaluation of the condition of the total system. Mr. Sampley responded that the City assumed the Trenton Water District several years ago, and that the Port of Bremerton is not a district, it is part of the City's service area, which owns the distribution center within the Port. He explained the benefit is the one million-gallon reservoir, which is the supply reservoir for the City and valued at $860,000, at a cost of $160,000. If an agreement is not reached, the reservoir will need to be separated from the system per State law. The only cost involved is for the reservoir acquisition. The Port has paid the full County resident rate during this period of time. He further stated this agreement is mutually beneficial to both the City and the Port, and would be very similar to agreements with Tracyton and Rocky Point. Mr. Montgomery_ asked for clarification on boundaries of the west 517-zone. Mr. Farr clarified that the City had no other option to be in compliance with State law, that either the City would need to take and control the reservoir, or provide our own to make up the difference. He asked for the status of the annexation issue in return for water service. Dick Brandenberg, Director for the Port of Bremerton, clarified that annexation was never mentioned during any previous discussions. #2192 M/S/C/U (Montgomery/Overson) Motion to approve the Agreement for Owning, Operating, Maintaining, and Planning Water System and Service to the Port of Bremerton by the City of Bremerton and authorize the Mayor to execute the Agreement according to established policies and procedures. TAPES #1628 & #1629 City Council Reg. Mtg. Minutes July 7, 1999 Page 4 of 7 10_A - RESOLUTION NO. 2711. AUTHORIZING INTERFUND LOANS TO ENABLE THF PURCHASE OF EMERGENCY GENERATORS. #AB99-122 Gene Sam.Dley, Director of Public Works, reported the proposed resolution would provide needed financing to allow the General Fund and the Wastewater Fund to purchase emergency power generating equipment. This equipment will be used by the General Fund to provide back-up power to the EOC and to the fleet maintenance building, and by the Wastewater Fund to provide back-up power to sewage pump stations. The loans will be repaid over a period of five years, thereby reducing the impact on operations of the two borrowing funds. The State of Washington has a current contract for mobile power generators that satisfy the City's emergency power needs. It is recommended that one Cummins 60-KVV and one 125-KW trailer mounted, mobile power generators be purchased through State contract in the amount of $56,903, plus sales tax. Questions and comments from the public: Ted Dupee questioned if his utility rates would increase; and John Becker asked how this purchase came about, which raised a concern about paying for these costs with credit. Mr. Sam~ley stated that with a 5-year payback for the wastewater fund, there would be no rate increases in citizen's utility rates. He further explained the City is currently under Consent Decree with the State Department of Ecology to provide emergency power to all of the City's wastewater stations, and that it was already in the budget to purchase 2 generators per year. Mr. Montgomery asked where the 60-KW generator was located, and if it could provide emergency back-up for the smaller pump stations only. Mr. Sam_Dley responded the generator was "trailer- mounted" and is currently at the Wastewater Treatment Plant, and yes, is for smaller pump stations. #2850 M/S/C/U (Montgomery/Overson) Motion to approve the resolution authorizing inter-fund loans from the Equipment Rental Reserve Fund to the General Fund and the Wastewater Fund and approve Budget Adjustment Request No. 99-7, with adjusted budget figures and to include two Cummins 125 KW generators. #2860 M/S/C/U (Montgomery/Arends) Motion to approve the purchase of two Cummins 125-KW and one 125-KW trailer mounted, mobile power, generators through the State of Washington Contract No. 04899 in the amount of $56,903, plus sales tax. 11A - PUBLIC HEARING AND ORDINANCE (FIRST READING), VACATING A PORTION OF MEAD AVENUE RIGHT OF WAY, #AB99-123 This item was not heard due to objections from over 50% of abutting property owners. Council member Wayne Olsen exited the meeting at 6:55 P.M. 11B - PUBLIC HEARING AND ORDINANCE (FIRST READING), VACATING A PORTION OF 6TM STREET RIGHT OF WAY. #AB99-124 Jeff Shea reported the City of Bremerton has proposed the vacation of 6th Street between Cambrian Avenue and Wycoff Avenue. On May 26, 1999, Council passed Resolution No. 2705 setting the hearing date of July 7, 1999. In accordance with Washington State Law all the postings and notifications were made. Because less than 50% of the abutting property owners submitted written objections to the City Clerk's Office, this action is before Council. However, Mr. Shea stated that in light of the removal of the previous item 1 I(A), this vacation should also be removed. TAPES #1628 & #1629 City Council Reg. Mtg. Minutes July 7, 1999 Page 5 of 7 Questions and comments from the public: Ted Du.Dee asked who was going to take care of this property if it is vacated since several members of the public use it as an egress. Larry_ Peterson stated that he wished to maintain driving access that would not necessitate going through parking lot. TAPE #1629 #0'150 M/S/C (Law/Arends) Motion to disapprove ordinance on first reading. Vote on motion: Motion carried. In Favor: Opposed: Arends, Reed, McConnell, Law, Overson, Farr, Shepherd Montgomery 11C - PUBLIC HEARING AND ORDINANCE (FIRST READING), VACATING A PORTION OF HARLOW DRIVE RIGHT OF WAY. #AB99-125 This item was not heard due to objections from over 50% of abutting property owners. 11D - PUBLIC HEARING AND ORDINANCE (FIRST READING), VACATING A PORTION OF TERREL DRIVE RIGHT OF WAY. #AB99-126 Jeff Shea, Senior Engineer, reported the City of Bremerton has proposed the vacation of a portion of Terrel Avenue between 6th Street and Burwell Street. On May 26, 1999, Council passed Resolution No. 2705 setting a hearing date of July 7, 1999. In accordance with Washington State Law all the postings and notifications have been made. Less than 50% of the abutting property owners have submitted written objections to the City Clerk's Office. The action before the Council is to approve, disapprove, or modify this vacation of a portion of Terrel Ddve. Questions and comments from the public: The Deputy City Clerk read a statement of support for this vacation from m.~Lq_~J:ttZJ~; and Ted Dupee questioned what he could do to obtain the right-of-way. Mr. Shea quoted the law, which states that each abutting property receives half. In talking with the legal department, there is case law, which stipulates that it would be vacated back to the property that it was dedicated from during the plat process. Mr. Witt further elaborated that the City, by this process, is required to vacate the property "from where it came from". He recommended that Mr. Dupee might talk with his neighbor about acquiring the property after the vacation. It would then be a private transaction. #0430 M/S/C/U (Arends/Montgomery) Motion to approve Ordinance on first reading. 11E - PUBLIC HEARING AND ORDINANCE {FIRST READING), VACATING A PORTION OF TAFT AVENUE RIGHT OF WAY. #AB99-127 Jeff Shea, Senior Engineer, reported the City of Bremerton has proposed the vacation of the easterly portion of Taft Avenue between 19th Street and 20~ Street. On May 26, 1999, Council passed Resolution No. 2706 setting a hearing date of July 7, 1999 for this proposed vacation. In accordance with Washington State Law, all the postings and notifications have been made. Less than 50% of the abutting property owners have submitted written objections to the City Clerk's Office. The action before the Council is to approve, disapprove, or modify this vacation of a portion of Taft Avenue. #0520 M/S/C/U (FardMontgomery) Motion to approve Ordinance on first reading. TAPES #1628 & #1629 City Council Reg. Mtg. Minutes July 7, 1999 Page 6 of 7 11F - PUBLIC HEARING AND ORDINANCE (FIRST READING). VACATING~A PORTION OF FORD AVENUE RIGHT OF WAY, #AB99-128 Jeff Shea, Senior Engineer, reported the City of Bremerton has proposed the vacation of the southerly portion of Ford Avenue between Kitsap Way and 13th Street. On May 26, 1999, Council passed Resolution No. 2706 setting a hearing date of July 7, 1999 for this proposed vacation. In accordance with Washington State Law all the postings and notifications have been made. Less than 50% of the abutting property owners have submitted wdtten objections to the City Clerk's Office. The action before the Council is to approve, disapprove, or modify this vacation of a portion of Ford Avenue. #0630 M/S/C/U (Arends/Montgomery) Motion to approve Ordinance on first reading. 11G - PUBLIC HEARING AND ORDINANCE (FIRST READING), VACATING A PORTION OF 13TM STREET RIGHT OF WAY, #AB99-129 This item was not heard due to objections from over 50% of abutting property owners. 11H - PUBLIC HEARING AND ORDINANCE (FIRST READING), VACATING A PORTION OF 19TM STREET RIGHT OF WAY, #AB99-130 Jeff Shea, Senior Engineer, reported the City of Bremerton has proposed the vacation of a portion of 19th Street between Wycoff Avenue and Callow Avenue. On May 26, 1999, Council passed Resolution No. 2706 setting a hearing date of July 7, 1999 for this proposed vacation. In accordance with Washington State Law all the postings and notifications have been made. Less than 50% of the abutting property owners have submitted written objections to the City Clerk's Office. The action before the Council is to approve, disapprove, or modify this vacation of a portion of 19th Street. Questions and comments from the public: Dan Osborn presented a petition to the Council, which showed support from the neighborhood to maintain this portion as a public right of way. He stated this pathway has been used by many people for many years, and is the only passageway between Wycoff and Callow. Nikko Lucas spoke in favor of this vacation. Mr. Farr added that he received numerous calls opposing the closing of this area. Council member John Law exited the meeting at 7:35 P.M. #1025 M/S/C (McConnell/Farr) Motion to disapprove Ordinance on first reading. Vote on motion: Motion carried. In Favor: Opposed: Reed, McConnell, Overson, Farr, Arends, Shepherd Montgomery 11I - PUBLIC HEARING AND ORDINANCE (FIRST READING), VACATING ALLEY AT WEST LINE OF IVY GREEN CEMETARY, #AB99-131 Jeff Shea, Senior Engineer, reported the City of Bremerton has proposed the vacation of the alley east of Whitney Avenue between 13th Street and 15th Street. On May 26, 1999, Council passed Resolution No. 2705 setting a hearing date of July 7, 1999 for this proposed vacation. In accordance with Washington State Law all the postings and notifications have been made. Less than 50% of the TAPES #1628 & #1629 City Council Reg. Mtg. Minutes July 7, 1999 Page 7 of 7 abutting property owners have submitted wdtten objections to the City Clerk's Office. before the Council is to approve, disapprove, or modify this vacation of the alley. #1160 MISICIU (Farr/Arends) Motion to approve Ordinance on first reading. With no further business meeting adjourned at 7:45 P.M. The action PAULA JOHNSTON, Deputy City Clerk MIKE SHEPHERD, Council President City of Bremerton P J/MS/Is C: Normal Distribution File AGENDA BILL BREMERTON CITY COUNCIL 1. SUBJECT: SR 304 TRANSPORTATION PROJECT FOR AGENDA OF' July 28, 1999 BURWELL STREET IMPROVEMENTS ORIGINATING DEPT: Public Works A: Lkdls CHANGE ORDER NO.1 ORIGINATOR: R. Witt, City Eng. ~-'/~- DATE SUBMITTED: July 13, 1999 2. CLI~ARA~OES~) (Comment on back if necessary) 3. EXI-III-IlTS: // // / ~. ,~/~' 1. Change Order No.1 ~/of~-blic W~ities 2. Projected Final Payment Uiiy/Atto~ney City Treasurer Council F~b~-~, & B~dget C~ee ~ouncil C~p~i-'~tio~s'C-o mmitte e ENDORSEMENT'.[[ INFORMATION [] APPROVED BY COUNCIL PRESID~ENT FOR. SUBMITTAL: MAYOR '-~, . ..... ~--'~- ~. COUNCIL PRESIDENT 4. SUMMARY STATEMENT AND REQUIREMENT FOR COUNCIL ACTION: Change Order #1 for the SR 304 TIP - Burwell Street Improvements contract consists of final increases and decreases in bid quantities and additional work required. This change order will increase the final contract amount by $112.087.72 (approx. 9.4 percent) from $1.194.509.90 to $1,306,597.62. This additional cost is primarily due to: (1) $86,292 for additional traffic control required due to the extended time necessary to complete the project and (2) $41,969 for additional asphalt required due to unanticipated deterioration of the existing pavement. Fund i nq fo r the cost increase is being provided by the Federal Highway Administration and the State 5. RECOMMENDATION: Transportat ion Improvement Board. The City Council approve Change Order #1 tbr the SR 304 Transportation Improvement Project - Burwell Street Improvements contract and authorize the Mayor to execute the same. PULLED [] TABLED [] COUNCIL DIRECTIVE: 9. RESPONSIBLE OFFICIAL: Director Pub Wks & Util ENFORCEMENT OFFICIAL: Director Pub Wks & Util EXPIRATION DATE: REVIEW DATE: 10. NOTICE OF ACTION APPROVED [] DISAPPROVED [] AMENDED [] 3[3 (OVER) 11. AGENDA BILL NO.: 2. CLEARANCE COMMENTS: 3. SUMMARY STATEMENT AND REQUIREMENT FOR COUNCIL ACTION - Continuation 5. IMPACT ON NON-PASSAGE: Funding by the State and Federal agencies used for the design and construction of this project will have to be returned. 6. IMPACT ON STAFFING, BUDGETS, FACILITIES, EQUIPMENT AND OTHER RESOURCES: Staffing: 1 O0 staff hours for construction administration, inspection. Budget: This project is included in the 1999 budget as part of the 1999 Arterial Street fund and sufficient funds exists to do this work. The Citv will be receiving funding from the Federal Highway Administration and the State Transportation Improvement Board for the costs incurred on this project. Facilities/Equipment: No impact. 7. RESEARCH SOURCES: CITY OF BREMERTOI R E C C CHANGE ORDER Page 1 of 3 -_iT¥ :DF ~.~.,~'r r. -jr~_-~,'~_~ct Change Order No. ~ Project Name SR304 TIP- Burwell Street Improv. Orig. Contract Amt. $ 1,194,509.90 Project No. A420451 Prev. Appvd. Changes $ 0.00 Contractor Ace Paving] Co., Inc. This Change $ 112,087.72 Revised Contract Amt. $ 1,306,597.62 Days N/A Days 2 Days 45 Days 47 This Change Order covers changes to the subject contract as described herein. The Contractor shall construct, furnish equipment and materials, and perform all work as necessary or required to complete the Change Order Items for a lump sum price agreed upon between the Contractor and the City of Bremerton. Description of Changes Increase in (Decrease) Contract Contract in Contract Time Amount Amount Extension ($) ($) (days) This change order consists of an Increase in the final contract amount. This increase in the final contract $112,087.72 2 days amount is due to increases and decreases in the individual bid item quantities as well as additional work required to complete the contract. See attached final bid quantities and the corresponding cost over/under runs of the individual bid items. Totals $112,087.72 I 2 days Net change in contract amount Increase or (decrease) $112,087.72 i I The undersigned Contractor approves the foregoing Change Order as to the changes, if any, in the contract price specified for each item including any and all supervision costs and other miscellaneous costs relating to The change in work, and as to the extension of time allowed, if any, for completion of the entire work on account of said Change Order. The Contractor agrees to furnish all labor and materials and perform all other necessary work, inclusive of the directly or indirectly related to the approved time extension, required to complete the Change Order items. This document will become a supplement of the contract and all provisions will apply hereto. It is understood that the Change Order shall be effective when approved by the City of Bremerton. Recommended: ~--~_ C_~, ~-~ /Project En~lineer Date: ~,/~ Recommended: Accepted: ~"~, I11'~, /City Engineer Date: ate: Approved: /Mayor Date: PROJECTED FINAl TGTAI, I'OTAI, QIIANT. CONTRACT TOTAl, CONTRACT % A(TE PAVING PIt IOI,tI'RIOll 1HIS AMOUNT QUANT. AMOUNT OV./llNl) BID ITEM UNIT EST. IlNl'lI AMOIINT (.)IIANI'. ('ON'IIRfl.("I' I'EI~tI¢)I) Tills 70 DATE COMPLETE CONTRA. QIJANI'.I'I{ICE AbI(IUNI' PERIOD TO DATE PREPARATION ;, ~; ,,;.~'i'~ .: , ::,. I Mobilization LS t $133,55975 133,55975 I O0 2133,55975 1.00 $]33,559.7510000% 2 Removin~ Existin~ Pavemem S Y ~55 $22 80 __ 8,0q-1 O( IO5 00 $2,]94 OO 105.00 $2,39400 2958% 3 Removin[~ Cement Concrete Sidewalk S Y 4,265 $10 (,'142.65(} t)O 192(, 80$3~),268 00 3926.80 $39,268.0092 07% 4 Removin~ Cemenl Concrete Curb & Gulto' 1. F 365 $13 05 4,76] 25 363 OO $4,7]7 15 363.00 24,737.15 99455/,, 5 Removin~ Traffic Islands I, S ~ $21500 O0 - 2,500 00 I 00 $2 5 )0 ~3 l 00 $2,5~ 00 I O0 00% 6 Removin~ Mi<eHaneous Tra~c Item L S I 53,6(}8 00 _3,608 00 I 00 $3,608 0o 1.~ $3,608 ~ 100~/o 7 Removin~ Existin$ Light Sland~d EA('I ] I I $1,o00 00 I 1,000 00 ~ O0 ....$11,000 00 I [ ~ $11,000 00[(~) O~/o 8 Remove Poflion of Exislin~ Cement Concrete Crab L F 015 $8 co 7,320 00 877 90 $7,02320 ~ 87790 $7,023 20 95 95% 9 Remove Exist Cern Cone Inleg~al Crab& Pavement I.F 510 $13 50 6,885 (~ 833 00 $11.245 50 833.~ ${ 1,245.50 163 33% D~INAGE 10 Concrelelnlet EACll I $9~)00 ~00 I (~ $~(~ I $~ IO0~% I I Catch Basin T~pe I EACI t 7 $1,(fl)O 007,000 00 5 00 $5,000 00 5 $5,~ ~ 71 43% 12 Catch Basin Type 2, 48 In Di~ EACI l 3 $1,500 (}0 4,500 00 1 (g) $4.500 00 3 $4,5~ ~ I00 0~ 13 Testln~ Storm Sewer Pipe I.F 66 $10o0 66000 000 $000 ~ 0 $0~ 000% 14 Plain Concrete Storm Sewer Pipe, 8 In Diam I. F 66 $100 o0 ~ (,{ 00 00 32 00 $~,2oo 0(} 32 $3,2~ 00 48.48% LIQUID ASPNALT I 15 Asphalt For Tack Coat TON 10 5.15(} O0 ~.1,5 0 (g)8 70 $3,015 00~ 8,7 $3,915 00 87~/= [6 Anti-Stripping Additive D()I.I,A R ESI' S 2,400(}0 $ $1,685 05 $ $1,68505 7021% ASPIIALT CONCRETE PAVEMENT 17 Crack Sealin~ I)Ol,I.AREST $ ~(.O(g}O0 ~ $17,094 25 ~ $ $17,09425 5698% 18 Planin~ Bituminous Pavement S Y [ 1,595 $5 45 63,192 75 ~2140 O0$6o,16~ 00 12140 $~,163,~ 104 7~ 19 Pl~in~ Gutter S Y ],800 $8 0(} 14,400 00 780 00 $6,240 00 780 $6,240 00 4333% 20 Asphalt Concrete For Prelevelin~ Class G TON 425 $50 O0 21,250 00 108 t 30$54,068 (R) 1081.36 $54,068 00 254 4455 21 Asphalt Concrete Pavement Class A TON 3,730 5420(I 156,660 (gl 3947 87 $165,810 54 394787 $165,810.54[05 84% 22 Asphalt ForPavemenlRepalr SY 60 $1000 6~)~ 91 l0 $91100 91.1 $911~ 15183% T~FFIC 23 Cement Concrete Pavemenl Palch S Y 150 $.1 ~ _ 6~7 50 [15 00 5573 75 [ 35 $573 75 90 00% I F ~(,S $1200 , 18000 ~[, I Oil $.115600 363 $4,35600 9945% 27 Iqaslic Slop Bal I.I~ ~o~ 2215 78,1 75 22020 $.171 4l 220.2 $47]43 6033% 28 PlasticTra~c Arrow EACll I I $35 00 385 00 12 ~} $.120 00 12 $420.00 109 O~/~ 29 Plastic Crosswalk Stripe S F 1.2lO $1 40 1,694 00 431 IO $003 54 431 I 2603 54 3563% 30 Plasdc Tra~c Letter EACll 12 $1400 16800 16~} $22400 ~ 16 $224~ 13333% 31 Raised Pavement M~ker Type I UNDREI 44 $134 00 5,896 OO ~41 90 $5,882 60 439 $5,88260 99 77% 32 Raised Pavement Marker Type 2 UNDREi lO 2232 00 2,32000 8 45 $1.960 40 8 45 $1,960 40 8450% 34 Perm~enl Sisnin~ I. S I $5,~O oO 5,~o Oo I oo $%000 O0 I $5,~ O0 100 (~% 35 S~uential Arrow Si~n IIOUR 672 $500 3,360 ~ 000 $0 ~ 0 $0 00 000% 36 Tempor~ Tra~c Control Devices LS I $10.000 (alIO,O~ O0 1~ $10,000 OO I $10,000 (~I00 O0% 37 Tra~c Control Labor lIOUR 1,280 $32 00 40,060 00521 I OO_~72~752 OO 321 I $102,752.0025086% 38 Tra~c Control Supervisor IIOUR 320 $4o o{1 12.800 0(~ ~.12 50 $37,700 Oo 9425 $37,7~ ~ 294 53% 39 Construction Signs Class A S F .lt~8 $10 00 4 98 ~ 004 ~ ~ oo$4]30 00 433 $4,330 ~ 8695% 40 Operation of Portable Chanseable Message Sign I IOtll~ I. ~44 $5 00 ~,720 O0 175 UO $875 00 ~ 175 2875 00 13 02% 41 Poflable Changeable Message Sign EArl I t $6,f~}O OO6,0~} O0 ~_1 O0 $6.000 00 I $6,~000 I O0 ~% 42 Induction Loop Type I EACll ~0 $000 00 ~6. ~O0 } ~ [~ 00 $6,O( } OO ~ I0 $6,000 ~ lO0 ~% 43 Induction l.oop Type 2, -I' X 4' l!A(~ -1 Sm~ 0~ . __ 1,200~)0 _ .] ()? _ $~,200 0(~ 4 $1,2~ ~ ?)~ ~/, EST. FINAL OVER/UNDER (.)savings (+)added cost $0.00 -$5,700 00 -$3,382 00 -$26 l0 $000 $0 00 $000 -$29680 $4,360 50 S0.00 -$2,OOO O0 , $000 -$660 O0 -$3,400 O0 .$585 00 -$714 95 -$12,905 75 $2,97025 -$8,160 00 $32,818 00 $9,150 54 $31 I OO -$63 75 -$24 00 -$11,626 50 $8,0:~2 50 -$31132 $35 OO -$1,090 46 $56 O0 -$13 40 -$35960 -$ 1,500 00 $000 -$3,36000 $0 O0 $61,79200 224,900 O0 -$650 00 -$5,845 00 $0.00 $0 00 SO(X) $0 O0 $000 $0 00 $0 O0 Page PRO,IkC I ED I INAL OTHER ITEMS : ~ ~ [:;~ - --48 Structure Excavation Class B Incl tiaul C Y 104 $30 85 3,20840 77 Go 52,375 45 77 $2,37545 74.04% 49 Shorin~ Or Extra Excavation Class B S F 220 $13 00_ 2.860 00 220 00 $2,860 Go.__ 220 52,860 OO 10000% 50 Adjust Monument Case And Cover EACII 6 $40000 2,400 00 6 ~ 52,40000 6 $2,4~.~ I00.~ 51 Adjust M~hole EACH 29 $750~ 21.75000 2750 $20.625 00 27.5 $20,625.009483% ~2 A~iust Catch Basin EACll 8 $675 O0 5,4~ 00 8 O0 $5,40O 00 8 $5,4~.00 I00 53 Adjust Valve Box EACII 21 $5~00 10,50000 ~2 ()(} $16.000 00 32 $16,~ ~ 152.38% 54 Vaned Grate EoF Calcb Basin ~ EACll 45 $200 00 o,000 00 .15 OO $,) ( 45 $9,~ ~ I O00~A 55 Cement Concrete Sidewalk S Y 4.663 $22 00 102.586 (g) ~479 58 $70.550 76 347958 $76,550.7674.62% 56 Cement Concrele Approach 3 Day S Y 412 $t6 O0 14.832 00702 35 $25.284 {}0 702.35 525,28460 170 47% 57 Tfimmin~ and Clean-up L S I 55.000 00 5,000 ~) _~ 00 $5.0(~) 00 I $5,~0.~ IO0~% 58 Credi~ebits- Mhlor Cban~es I)O[.I.AR('Al,(' $1 00 I 00 188 71 $t88 71 388 71 $388 71 N/A 59 Bulb-Out Drain I~ F % $74 50 7,152 00 122 O0 $9,089 00 122 59,089.00 12708% ~ R~sidential Sidewalk Drain l. [: 87 $60 O0 5.220 00 79 30 $~.758 {R) 793 54,758 ~ 91 15% 61 Crashed Surfacing Top Course TON 30 $50 {~1 1,500 00 43 40 $2 17 }1 43.4 $2,t70 O0 144 67% LANDSCAPING 62 PSIPE Scarlet Oak EACll 12 $750 O0 9,~0~ 10 40 _$7.800 00 13 $9,750.~ 108.33% 63 PSIPE Rock Rose EACII 77 $55 00 4.235 00 61 60 $3,388 00 77 $4.235 O0 64 PSIPE Box-Leafllolly EACll 21 g55 00 ~1,155 0(~_ lO 80 $924 00 21 $1,155 ~ 10000% 65 PSIPE Win~ed Euonymus EA('II 19 $55 O0 1045 00 15 20 $81o rtl} 19 51,045 ~ I~ 00% 66 PSIPE Winter C~eeper EA('I I ~00 $7 O02.800 O0 to2 40 $2, I I ( 80 378 $2,646 ~ 94 67 Top~il Type A C Y ~ 81 $85 O~} - 3.045 00 7o 00 $ 420 }0 76 $3,42000 93 83% 68 B~k Mulch C Y 15 ~ $70 00 1.050 00 15 00 $1.o5{I GO 15 $1,050 ~ I ~.~/~ 69 Feflilizer Tablets 14~ 20 ~20o 40 00 23 00 $~6 o0 ~ 23 $46 O0 I 15 70 Root Broiler L F 656 $10 OO 6,560 ?{}~10 00 $5,100 00 510 $5,1~.~ 7774% ?l Water I.S I $5.00000 5.~0 ~ I 00 $5.000 00 I $5,0~.00 [ ~00~ 72 Concrete Unit Pavers, lnstalled SF 1,580 $1500 23,70000 1_.. 0 $18.33000 1222 $18,330~ 7734% 73 L~ds~pe Area Drainage Improvements m DOI.I.A R EST $ 1,~0 00 0 00 $0 00 0 $0 O0 0~/~ Ch~8* Order 8 h Delete SD and CB type I DOLLAR ES~ $ {4.134 70} $4,134.70 ~ill be applied a* increases or deere~a~ Io Ihe bid ~u~ntili~. Ch~g¢ Order ~2: Malarial Change In Cone Pave*s No eo~t Cbam~ge {See Ilem ~72 For Q.antilles And Pay~mmemd} Ch~Be Order ~3: Ccusbed Rock TONS 50 $4000 2,00000 497.1 $1,98o6o 49.74 $1,98960 0~/~ Chan~e Order ~4: Service Cabinet Modification L S [ $561 85 503 85 I 00 $563 85 I $563.85 100 (~/~ Uhan~c Order ~4' Two Addh Tree Islmuls ............... I. S I $2..(,{10__0o ............ 2.6(10 OO I 0{) $2_ .60(} OO . ...... I $2,6~ 00 [?ban~e O*der ~4 Delete Pipe Temm fi{llll Si~llill Nll}d I, S I ($212 521 12-12 52} $ 15212 521 $ ($242 52) 100 00% Uhan~c Olde[ 114 Install Addit Elccl[ical ('onduh )IH l~l-~ ~ I~S~ _ . ~ ..... ~,,~ 18 1}o $ $o 1}. q 58 $ 59,049 58 147 92% Uhan~ O~der #5 Addil Induction I.oop Type I I~A('I I I l ${,OO {1(1(LG()O 00 ...... I I {~1~o.o(}0 1~} I I $6,6~.00 Ch~e Order ~5 Pavement Joint Repair I,F t~o9 $15 44 10327 82 608 tR}$10.127 8~~ ~8.9 510,327.82I00 0~¢ Cbaose Order ~5 PavemenffSubbase Repair SI: 150 $15 00 5,250 00 150 00 $5.250 00 150 55,250,00 100~ Ch~c Order ~5 Grindin~ Pavement Ruts SY 91 $15 00 1,365 00 91 (}0 ~l D65 00 91 $1,365.~ I~ 0~/. Ch~e Order g5 Grinding of Addit. Brittle delam ACP DOI.I.AR ESI $ 9.150 0O tlTt)-t I I $9.794 I I 9794 I I$9,794 I II O7 04% (}'FLIER PAYMENTS WITIIIIELD (see note) $0 O0 $0 ~ $0~ O'FIIER PAYMENTS I~IEMBURSED (see note) $0 00 $0 ~ $0~ RETAINAGE] I ,,05,141 57) $0 oo ($65,329 88) FOTAI. $1,237,680 85 $0 oo 51,241,267 74 (),igi,,al ('Olltrllc( [llll,llnl: I I'}l '~O'} ,a~ TOTAL DUE: $0.00 -$832 95 $000 5000 -$1.125 00 $000 55,50000 $000 -$26,035 24 $10,452 60 $0.00 $387 7 I $1,937 O0 -$462.00 $67000 5750 00 $000 $000 $0 O0 -$154 O0 -$225.00 $0 O0 $600 -51,460.00 $0 00 -$5,37O00 -51,00OOO $000 $000 Sl,989.60 556385 $2.6O000 -$242 52 $9,04958 56,600 00 $10,327.82 55,250.00 $1.365 O0 $9,794 1 I $112,087.72 Page 2 AGENDA BILL BREMERTON CITY COUNCIL 1. SUBJECT: SR 304 TRANSPORTATION PROJECT ASBESTOS REMOVAL NO. 3 CONTRACT CHANGE ORDER NO.2 y/(Comment on back if necessary) Cogmsi.1 F,~s/al~ Bund. get Comn3i~e "Council O'l~e~'fi~i~ns Committee FOR AGENDA OF: July 28. 1999 ORIGINATING DEPT: Public Works &.~Utils ORIGINATOR: R. Witt, City. Eng. /'~'. DATE SUBMITTED: July 14, 1999 3. EXHIBITS: 1. Change Order No.2 ENDORSEMENTS' INFORMATION [l APPROVED BY COUNCIL PRESIDENT FOuR ~SUBMITTAL: MAYOR ~'~'-~. ...... ,, . - . COUNCIL PRESIDENT 4. SUMMARY STATEMENT AND REQUIREMENT FOR COLLNCIL ACTION: Change Order #2 for the SR 304 TIP Asbestos Removal No.3 contract consists of two items. The 1 ~ item is for the removal of asbestos from 302 S. Cambrian. The 2nd item is for the removal of asbestos from 2807 Rogers. This change order will increase the total contract price by $3.155.11 to $48.276.11. 5. RECOMMENDATION: The City Council approve Change Order #2 for the SR 304 Transportation Improvement Project - Asbestos Removai No. 3 contract 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 [1 TABLED Il COUNCIL DIRECTIVE: APPROVED [1 DISAPPROVED [] AMENDED [] 3C (OVER) 11. AGENDA BILL NO.: 2. CLEARANCE COMMENTS: 3. SUMMARY STATEMENT AND REQUIREMENT FOR COUNCIL ACTION - Continuation 5. IMPACT ON NON-PASSAGE: Funding by the State and Federal agencies used for the design of this project will have to be returned. The project will not be built and existing traffic capacity safety issues will remain. 6. IMPACT ON STAFFING, BUDGETS, FACILITIES, EQUIPMENT AND OTHER RESOURCES: Staffing: 20 staff hours for construction administration, inspection. Budget: This project is included in the 1999 budget as part of the 1999 Arterial Street fund and sufficient funds exists to do this work with the additional funding the City will receive f¥om other funding sources. The City will be receiving funding from the Federal Highway Administration and the State Transportation Improvement Board. Facilities/Equipment: No impact. 7. RESEARCH SOURCES: Received: 7/14/99 9:31AM; 3604785018 -> CROWN DELTA; 360478501L__3REMERTON PW & UTIL. CITY OF BSEMER'fON Page 2 801 P02 JUL 14 '99 09:25 CHANGE ORDER Project Name SR304 TIP Asbestos Removal No.3 Project No. A42046 Contractor Crown Delta Environmentalr Inc. Page Contract Change Order No. 2 Orig. Contract Amt. $ 28,514.00 Prsv. Appvd, Changes $ 16,607,00 This Change $ 3r156,11 Revised Contract Amt. $ 48,276.11 1 of I Days 20 Days 33 Days 44 Days 97 This Change Order covers changes to the subject contract as described herein. The Contractor shall construct, furnish equipment and materials, and perform all work as necessary or required to complete the Change Order Items for a lump sum price agreed upon between the Contractor and the City of Bremerton. Description of Changes Increase in (Decrease) Contract Contract in Contract Time Amount Amount Extension ($) (~) (days) 1. Remove and d~spose of asbestos containing material $ 1,904,32 22 from 302 S. Cambrian Avenue, 2. Remove and dispose of asbestos containing material $ 1,250.79 22 from 2807 Rogers Street. Totals $3,155.11 44 Net change in contract amount $3,155.11 Increase or (decrease) The undersigned Contractor approves the foregoing Change Order as to the changes, if any, in the contract price specified for each item including any and all supervision costs and other miscellaneous costs relating to the change in work, and as to the extension of time allowed, if any, for completion of the entire work on account of said Change Order. The Contractor agrees to furnish all labor and materials and perform all other necessary work, inclusive of the directly or indirectly related to the approved time extension, required to complete tl3e Change Order items. This document will become a supplement of the contract end all provisions will apply approved by the City of Bremerton. hereto. It is understood_that the~Change Order shall be effective when Recommended: ~ .... ~//~ /Project Enfineer Date: Recommended: // / ~ /City Engineer Date: Accepted: :. ~ /CL"t ' ~--'~,or D.,,: Approved: /Mayor Date: JUL 1 9 leqq AGENDA BILL BREMERTON CITY COUNCIL 1. SUBJECT: FOR AGENDA OF: July 29, 1999 Habitat for Humanity Easements ORIGINATING DEPT: Public Works & Utilities ORIGINATOR: P. Lucas, Admin Anal.v~.~ DATE SUBMITTED: July 6, 1999 2. CLEARANCES: (Comment oyhff~~ 3. EXHIBITS: Director PW&U ~/c-, ~L..L~E~' · Proposed Easements '""- Attorne % z;-,~ ~' //' '~' ' Dra ' of Area Committ Comm. ENDORSEMENT ~ INFORMATION ~ APPROVED BY COUNCIL PRESIDENT FOR SUBMITYAL: COUNCIL PRESIDENT //~~ 4. SUMMARY STATEMENT AND REQUIREMENT FOR COUNCIL ACTION: Habitat for Humanity has purchased two parcels of land owned by the City near the Wastewater Treatment Plant. They intend to construct homes on the parcels. After purchase of the properties, it was discovered that there was no hookup for sewer. The easements that are before Council are tt'xough other pieces of property owned by the City.'. The properties purchased by Habitat for Humanity are identified on each drawing by an "X" across each parcel. There is an advantage to the City. in ~m'anting these easements to Habkat for Humanity, at no cost. 8. RECOMMENDATION: That the City Council approve the easements as written and authorize the Mayor to sign. 9. RESPONSIBLE OFFICIAL: ENFORCEMENT OFFICIAL: EXPIRATION DATE: REVIEW DATE: PULLED TABLED COUNCIL DIRECTIVE: 10. APPROVED NOTICE OF ACTION DISAPPROVED AMENDED DATE:~ 11. AGENDA BILL NO: 2. CLEARANCE COMMENTS: 5. IMPACT ON NON-PASSAGE: Habitat for H~, a non-profit orga~i~'ation relying heav~y upon donations, will be required to pay a significant amount of money for hookup to sewer further south on Cottman Avenue. 6. IMPACT ON STAFFING~ BUDGETS, FACILITIES~ EQUIPMENT OR OTHER RESOURCES: NONE 7. RESEARCH SOURCES: ~ ~970122_1 .al~} June 25, 1999 ROUTING TO: CHERIE HENRY FROM: LYNN FOWLER Department of Public Works and Utilities RE: Sewer Easements: (3) Cottman Property's PLEASE ROUTE RECORD. AND RETURN. THANK YOU FOR THE APPROPRIATE SIGNATURES ON THE ATTACHED AND Filed for Record at Request of When Recorded Return to: Name: City Clerk Address: 239 Fourth Street Bremertom WA 98337 Document Title: Project Name: Developer Name: Location: Tax Parcel # Abbreviated Legal Description: Sewer easement Cottman property. City of Bremerton East side of Cottman Avenue between Jones Street and Barnes Street 4546-002-001-0008 Block 002, Lot 1 of the plat of Ole Hanson's Navy Yard Addition as recorded in Plats Volume 4 Page 56. Section 21, Township 24 N, Range 1 E, W.M., Kitsap County, WA. SEWER EASEMENT THIS EASEMENT. made and entered into this z>2-~ day of lt~, ~c.k_ , 1999. by and between the City. of Bremerton, a first class municipal corporation. (hereinafter referred to as "Grantor"): and North Kitsap Coun¢' Habitat for Humani¢' (hereinafter referred to as "Grantee"). FOR AND IN CONSIDERATION of the mutual promises and benefits contained herein and for other valuable consideration, the receipt of which is herebv acknowledged. Grantor and Grantee hereby agree and covenant as follows: 1. GRANT OF EASEMENT: Grantor does hereby convey and quit claim to Grantee an easement for the purpose of constructing, operating, maintaining, and repairing sewer lines across the property described as follows: See Attached EXHIBIT "A" RESTORATION: Upon entry into the property in the exercise of this easement, the surface of the ground shall be substantially restored to its condition prior to commencing work or as nearly thereto as is reasonably possible. SEWER EASEMENT -1- EASEMENT TO RUN WITH THE LAND: The Grantor and Grantee intend that this Agreement shall be a covenant running with the land described above and shall be binding upon Grantor's and Grantee's successors in interest. .4. GOVERNING LAW: The place of making this Agreement shall be deemed to be the State of Washin~on? and the legal fights and obligations of the parties hereto shall be determined in accordance with the laws of the State of Washington. JURISDICTION AND VENUE: In the evem that any suit or action shall be brou~mht in connection with any of the terms and conditions of this Agreement, the parties hereto hereby agree that jurisdiction and venue of any such suit or action shall properly lie in Kitsap Count, State of Washin~on. SEVERABILITY: In the event that any section, or any part of anv section, or this Agreement shall be declared invalid by a court of competent jurisdiction, said holding shall have no effect upon the remaining sections of this Ageement, which shall remain in full force and effect. ENTIRETY: This Agreement constitutes the entire agreement and understanding between the parties hereto. There are no other agreements or understandings, either wa4tten or oral, which modi~ or have any effect upon this Agreement. GRANTOR'S USE OF EASEMENT AREA: Grantor reserves the fight to use the Easement Area for any purpose not inconsistent with the rights herein granted, provided, that Grantor shall not construct or maintain anv SEWER EASEMENT -2- building, structure or other object on the Easement Area. IN WITNESS WHEREOF, this Agreemem has been duly executed by the parties hereto, to be effective on the day and year first above written. Name of Grantee STATE OF WASHINGTON ) COUNTY OF KITSAP ) SS. On this ,/~ day of *C{~'-~ (._ , _1_999, before me appeared -~:, '~_ W', i- ~ C ,,":. ~. ~ i ' . to me known to be the - .~ - ,,.:i ~ ~- -- .^,;i ,~. Pcc,~,'?,~ ;da.0, T-ar wc ~c,r,-,~,.' ,.'that executed the within and fore~oin~ instrument, and acknowledged' said instrument to be the free and volunmlw act and deed of said D ,-co c :'? ,;. for the uses and purposes therein mentioned, and on oath stated that ;-; C was authorized to e~ecute said instrument. personally . of In Witness Whereof.. I have hereunto set my hand and affixed mv official seal the day and year first above written. NOTARY PL~LIC in and for the State of Washin~on~ residing at My. Commission expires: '.'- 5) t,,' - ~:,, =;., SEWER EASEMENT -3- CITY OF BREMERTON, Grantor STATE OF WASHINGTON ) COUNTY OF KITSAP ) SS. On this day of , 1999, before me personally appeared . to me known to be the Mayor, of the City. of Bremerton that executed the within and foregoing instrument, and acknowledged said instrument to be the free and voluntary act and deed of said . for the uses and purposes therein mentioned, and on oath stated that she was authorized to execute said instrument. In Witness Whereofi I have hereunto set my hand and affixed my official seal the dav and year first above written. D E P/ayRT~N~' AP P ROV AL: w. EuoE E Director of Public Works and Utilities NOTARY PUBLIC in and for the State of Washington residing at My Commission expires: BY: LYNN S. HORTON Mavor APPROVED AS TO FORM: GLENNA MALANCA City Attorney RECEIVED FOR FILING: KATHLEEN L. McCLUSKEY City Clerk WATER EASEMENT -4- Exhibit "A" LEGAL DESCRIPTION The West 5 feet and the South 10 feet of the following described property.: Block 2, Lot 1 of the Plat of Ole Hanson' s Navy. Yard Addition, as recorded in Plats Volume 4, Page 56. Section 21, Township 24 N., Range 1 E., W.M., Kitsap County.. WA. , 101.5-00 ~-oo.. I ot6-oo t -00 t:2 008-01 OOI-O0 ozt_oo. Filed for Record at Reques~ of When Recorded Return to: Name: City Clerk Address: 239 Fourth Street Bremerton, WA 98337 Document Title: Project Name: Developer Name: Location: Tax Parcel # Abbreviated Legal Description: Sewer easement Cottman property City of Bremerton East side of Cottman Avenue between Jones Street and Barnes Street 4546-002-019-0008 Block 002, Lots 19 and 20 of the plat of Ole Hanson's Navy Yard Addition as recorded in Plats Volume 4 Page 56. Section 21, Township 24 N, Range 1 E, W.M., Kitsap County, WA. SEWER EASEMENT THIS EASEMENT, made and entered into this ~ day of ~d,.l,3kz~_. , 1999. by and between the City of Bremerton, a frrst class municipal corporation. (hereinafter referred to as "Grantor"): and North Kitsap County. Habitat for HumaniD' (hereinafter referred to as "Grantee"). FOR AND IN CONSIDERATION of the mutual promises and benefits contained herein and for other valuable consideration, the receipt of which is herebv acknowledged, Grantor and Grantee hereby agree and covenant as follows: 1. GRANT OF EASEMENT: Grantor does hereby convey and quit claim to Grantee an easement for the purpose of constructing, operating, maintaining, and repairing sewer lines across the propert?' described as follows: See Attached EXHIBIT "A" 2. RESTORATION: Upon entry into the property in the exercise of this easement, the surface of the ground shall be substantially restored to its condition prior to commencing work or as nearly thereto as is reasonably possible. SEWER EASEMENT -1- EASEMENT TO RUN WITH THE LAND: The Grantor and Grantee intend that this Agreement shall be a covenant running with the land described above and shall be binding upon Grantor's and Grantee's successors in interest. GOVERNING LAW: The place of making this Agreement shall be deemed to be the State of Washington, and the legal rights and obligations of the parties hereto shall be determined in accordance with the laws of the State of Washington. o JURISDICTION AND VENUE: In the evem that any suit or action shall be brought in connection with any of the terms and conditions of this Agreement, the parties hereto hereby agree that jurisdiction and venue of any such suit or action shall properly lie in Kitsap County., State of Washington. SEVERABILITY: In the event that any section, or an.',' part of any section, or this Agreement shall be declared invalid by a court of competent jurisdiction, said holding shall have no effect upon the remaining sections of this Agreement. which shall remain in full force and effect. 7. ENTIRETY: This Agreement constitutes the entire agreement and understanding between the parties hereto. There are no other a~eements or understandings, either written or oral. which modify or have any effect upon this Agreement. GRANTOR'S USE OF EASEMENT AREA: Grantor reserves the right to use the Easement Area for any purpose not inconsistent with the rights herein granted, provided, that Grantor shall not construct or maintain any SEWER EASEMENT -2- building, structure or other object on the Easemem Area. 1N WITNESS WHEREOF, this Agreemem has been duly executed by the parties hereto, to be effective on the day and year f~rst above written. Grantee_ i / Name of GranZee STATE OF WASHINGTON ) : SS. COUNTY OF KITSAP ) On this ,~.~ day of ~,¢c:~,.,.~ 1999, before me personally appeared ~, F_ ~, c k ~ ,:~4 c~. t \ , , ~ me known to be the k .;- r :: ~ c: c c~T , of //'- ?(- ~m,~, /~ ,~flfz,:.~.,,x/.a~f that executed the within ~c~'?(;?egoing instrument, and acknowled~d said ins~ent to be tt/e free and voluntar?.' act and deed of said.,Or'c,,~C,--l~, for the uses and purposes therein mentioned, and on oath stated that !'. ~ was authorized to execute said instrument. In Witness Whereof. I have hereunto set my hand and affixed my official seal the day and year first above written. ..... .... · NOTARY PUBLIC in and for the State of Washin~on residing at ~- ,: .... ' - ....~" My Commission expires: '~ ' .: ~, - :, ~: SEWER EASEMENT -3- CITY OF BREMERTON, Grantor STATE OF WASHINGTON ) COUNTY OF KITSAP ) SS. On this day of , 1999, before me personally appeared ~, to me known to be the Mayor, of the City of Bremerton that executed the within and foregoing instrument, and acknowledged said instrument to be the free and voluntary act and deed of said , for the uses and purposes therein mentioned, and on oath stated that she was authorized to execute said instalment. In Witness Whereof, I have hereunto set my hand and affixed my official seal the day and year first above written. D EP/.j~/T~~TT~ APPROVAL: W. EUGENE S~ Director of Public Works and Utilities NOTARY PUBLIC in and for the State of Washington residing at My Commission expires: BY: LYNN S. HORTON Mavor APPROVED AS TO FORM: GLENNA ~MALANC A City Attomey RECEIVED FOR FILING: KATHLEEN L. McCLUSKEY City Clerk WATER EASEMENT -4- Exhibit "A" LEGAL DESCRIPTION The East 5 feet of the following described property: Block 2, Lots 19 and 20 of the Plat ofOle Hanson's Naw Yard Addition, as recorded in Plats Volume 4, Page 56. Section 21, Township 24 N., ~ge 1 E., W.M., Kitsap Count, WA. ' ' -00 g09-~O 2 gl4-OO i ot~-oo I 022-00 77 ~J 27 , ! I I ! i ! 1 / 1 ! / ! / Filed for Record a~ Reques~ of When Recorded Return to: Name: City Clerk Address: 239 Fourth Street Bremerton, WA 98337 Document Title: Project Name: Developer Name: Location: Tax Parcel # Abbreviated Legal Description: Sewer easement Cottman property, City of Bremerton East side of Cottman Avenue between Jones Street and Barnes Street 4546-002-002-0007 Block 002, Lots 2 to 4 of the plat ofOle Hanson's Navy Yard Addition as recorded in Plats Volume 4 Page 56. Section 21, Township 24 N, Range 1 E, W.M., Kitsap County, WA. SEWER EASEMENT THIS EASEMENT, made and entered into thisc~- day of }6~L(_ . 1999. by and between ! the City of Bremerton, a first class municipal corporation. (hereinafter referred to as "Grantor"5: and North Kitsap County Habitat for Humanity. (hereinafter referred to as "Grantee"). FOR AND IN CONSDERATION of the mutual promises and benefits contained herein and for other valuable consideration, the receipt of which is hereby acknowledged, Grantor and Grantee hereby agree and covenant as follows: 1. GRANT OF EASEMENT: Grantor does hereby convey and quit claim to Grantee an easement for the purpose of constructing, operating, maintaining, and repairing sewer lines across the property descr/bed as follows: See Attached EXHIBIT "A" RESTORATION: Upon entry into the property in the exercise of this easement, the surface of the ground shall be substantially restored to its condition prior to commencing work or as nearly thereto as is reasonably possible. SEWER EASEMENT -1- EASEMENT TO RUN WITH THE LAND: The Grantor and Grantee intend that this Agreement shall be a covenant running with the land described above and shall be binding upon Grantor's and Grantee's successors in interest. GOVERNING LAW: The place of making this Agreement shall be deemed to be the State of Washington, and the legal rights and obligations of the parties hereto shall be determined in accordance with the laws of the State of Washington. o JURISDICTION AND VENUE: In the event that any suit or action shall be brought in connection with any of the terms and conditions of this Agreement, the parties hereto hereby agree that jurisdiction and venue of any such suit or action shall properly lie in Kitsap County., State of Washin~on. SEVERABILITY: In the event that any section, or any part of any section, or this Agreement shall be declared invalid by a court of competent jurisdiction, said holding shall have no effect upon the remaining sections of this Agreement, which shall remain in full force and effect. ENTIRETY: This Agreement constitutes the emire ageemem and understanding between the parties hereto. There are no other ageements or understandings, either written or oral. which modify or have any effect upon this Agreement. GRANTOR'S USE OF EASEMENT AREA: Grantor reserves the right to use the Easement Area for any purpose not inconsistent with the rights herein granted, provided, that Grantor shall not construct or maintain any SE~ER E~SE~ENT -2- building, structure or other object on the Easement Area. IN WITNESS WHEREOF, this Agreement has been duly executed by the parties hereto, to be effective on the day and year frrst above written. GranXee, ,/' Name of Gran~ee STATE OF WASHINGTON ) · ss. COUNTY OF KITSAP ) On this -.? :~. day of '~., t..t.'rL~._. , 1999. before me personallv appeared Dm ,.~c~<e~-~clc~t\_ . _, to me known to be the )t:9~~.¢d~. .of 'd 3,,4 , xecuted the within and foregoing instrument, and acknowle~tged ~ic~ ifig~ument t~ bi' the free ~nd voluntary.' act and deed of said ~ ,-: ~ ~: ,"Z . for the uses and purposes therein mentioned, and on oath stated that !- ~_ was authorized to execute said instrument. In Witness Whereof, I have hereunto set my hand and affixed my official seal the dav and year first above written. NOTARY PUBLIC in and for the State of Washington residing at Mv Commission expires: SEWER EASEMENT -3- CITY OF BREMERTON, Grantor STATE OF WASHINGTON ) COUNTY OF ICITSAP ) SS. On this day of , 1999, before me personally appeared _, to me known to be the Mayor, of the City. of Bremerton that executed the within and foregoing instrument, and acknowledged said instrument to be the 15ce and voluntary act and deed of said , for the uses and purposes therein mentioned, and on oath stated that she was authorized to execute said instrument. In Witness Whereof, I have hereunto set my hand and affixed my official seal the day and year first above written. DEP~tR~APPROVAL: Director of Public Works and Utilities NOTARY PUBLIC in and for the State of Washington residing at My Commission expires: BY: LYNN S. HORTON Mayor APPROVED AS TO FORM: GLENNA MALANCA Ci~ Attorney RECEIVED FOR FIL~XIG: KATHLEEN L. McCLUSKEY City Clerk WATER EASEMENT -4- Exhibit "A" LEGAL DESCRIPTION The West 10 feet of the following described property.: Block 2, Lot 2 and Lot 3 of the Plat of Ole Hanson's Naw Yard Addition. as recorded in Plats Volume 4, Page 56. Section 21, Township 24 N.. R~ge 1 E.. W.M.} Kitsap County, WA. O0 2-00 .00 O0 00~-00 >004-00 001-00 01.1-00 I 015-00 I '001-00 022-00 .005-00 009-00 J 27 AGENDA BILL BREMERTON CITY COUNCIL 1. SUBJECT: ANDERSON COVE CSO, CW-~ MODIFICATIONS - PROFESSiCNAL SERVICES 2 .. CLEA~CE$: (Comment on back D~reot~r of ~ Works & Utilities cir~y 'Attorney ~,, Cit~ Treasu.r-er ~ Council Fiscal~ & B~ge32/Com~tee Council Operations committee FOR AGENDA OF: July 28, 1999 ORIGINATING DEPT: Public Works & L'ti!~ x~ ORIGINATOR: R. Wi' ~ ~:- ~=, ~-' .y Eng. DATE Sb~BMITTED: July 20, 1999 3. EXHIBITS: _.~ Professional Services ENDORSEMENT MAYOR INFORMATION [] APPROVED BY COIINCIL PRESIDENT FOR SUBMITTAL: COb~CiL PRESIDENT 4. SITMMARY STATEMENT AND REQUIREMENT FOR COUNCIL ACTION: The Facility S]an ~o-~ CSC ~' ' ' ~ ~' - r=~cEic.~ ~e ~derson Cove ~as~- ~=.~ modifying wasUewater uum~ =-anion CW-2 to convey ~he peak = .... -~-~ -- ~=~ne as having a demonsnraned az!lin,; ~ng~ne~__ng, Inc __ ~ - =!ecurica ~~ z engineering, and was ~=el~c5=d_~ ~ from 5he erofessiona! services rcsner to perform the elecUricai design of 5he Dump station modificalicxs. The acumen before the City Counci~ ~= approval of a ~ = ..... - - ' - with Casne Engineering, inc. 5. RECO594ENDATION: The City Council approve a contract for S!6,600 wi~h Casne Engineering, for Professional Services, and authorize the Mayor uo execute %he same. RESPONSIBLE OFFICIAL: Direc5or Pub Wks & 7~-~- ENFORCEMENT OFFICIAL: Direcncr Pub Wks & Unll EXPIRATION DATE: REVIEW DATE: 10. NOTICE OF ACTION PULLED [] TABLED [] COUNCIL DIRECTIVE: APPROVED [] DISAPPROVED [] AMENDED (OVER) 5g AGENDA BILL NO.: 2. CLEARANCE COMMENTS: 3. SUMMARY STATEMENT AND REOUIREMENT FOR COUNCIL ACTION - Continuation 5. IMPACT ON NON-PASSAGE: Design and construction of CSO reducuion improvemenns to 5he ~nderscn Cc,;e Drainage Basin will be delayed. 6. IMPACT ON STAFFING. BUDGETS, FACILITIES, EOUIPMENT AND OTHER REsouRCES: ~ No Impact. Budg~: This projec~ is included in the 1999 budget and sufficienn funds exist to do this work. An expenditure from the Wasnewaner Utility Capital Fund of S16,600 is necessary. Faci!i~ies/Equipmen~: Nc impacu. 7. RESEARCH SOURCES: PROFESSIONAL SERVICES AGREEMENT Casne En_~ineerinm Inc. THIS AGREEMENT is between the (hereinafter referred to as "City.") and Casne "Consultant"). City of Bremerton, a municipal corporation Engineering, Inc. (hereinafter referred to as WITNE S SETH: 1. SCOPE: Consultant agrees to provide engineering services for development of plans and specifications for upgrade and modifications to Wastewater Pump Station CW-2, as further described in the scope of work attached hereto and incorporated herein by this reference as Exhibit "A". 2. TERM: Contract shall commence on the date of this agreement and will terminate on July 15, 2000, unless otherwise extended by the City. 3. COMPENSATION: City shall pay Consultant compensation as follows: Total fees under this Agreement shall not exceed Sixteen Thousand Six Hundred Dollars ($16,600). Charges for services shall conform to the fee schedule attached hereto and incorporated herein as Exhibit "B". Consultant shall submit regular statements describing the services rendered with a breakdown for work completed as authorized under this Agreement. The City., upon receipt of the completed statement, shall promptly process said claim for pa.vment. If the description of services on the Proposal desi~maates additional services which may be requested by the City, said additional services will be paid for by the City. at the rate set forth in the Proposal, which sum may exceed the "not to exceed" amount set forth above. However, said services will only be performed, and compensated by the City after the City has directed such performance in writing. 4. RELATIONSHIP OF P.MtTIES: The parties understand and agree that Consultant is a firm skilled in matters pertaining to electrical engineering and will perform independent functions and responsibilities in the area of its particular field of expertise. Consultant and its personnel shall act as independent contractors and not employees of the City. As such they have no authority to bind neither the City or control employees of the City, contractors, or other' entities. Within the performance of these duties, Consultant shall work under the direction of the Director of Public Works and Utilities. 5. INDUSTRIAL INSURANCE: Consultant agrees to provide for State industrial insurance coverage for its personnel as required by State law. 6. LICENSE AND TAXES: Consultant shall possess a current Bremerton Business PROFESSIONAL SERVICES AGREEMENT -1- License and any regnlatory license required to fulfill Consultant's obhgations under this Agreement. B & O taxes shall be paid when due and Consultant, by this Agreement, assigns any pa,vrnents due under this Agreement to the City Clerk for payment of such taxes which have been 'declared delinquent. 7. INSURANCE AND HOLD HARMLESS: Prior to and during the performance of the work covered by this Agreement, Consultant shall provide the Risk Manager for the Ci~ of Bremerton with evidence that it has obtained and maintains in full force and effect during the term of this Agreement a pohcy of professional liability insurance, providing coverage of at least $500,000.00 against professional liability for errors and omissions in connection with the work to be performed by Consultant under this Agreement. Risk Manager shall be provided thirty~ (30) days' written notice of any cancellation of said professional liability insurance. Consultant shall, at all times, be solely responsible for the acts or failures to act of its personnel which occur or arise in any way out of the performance of this Agreement. Consultant agrees to save and hold the City, its personnel and officials, harmless from all costs, expenses, losses, and damages, including the cost of defense, incurred as a result of any negligent acts or omissions of Consultant's personnel relating to the performance of this Agreement. 8. GENERAL CONDITIONS: a. Reports and Information - Consultant, at such times and in such forms as the CiD' max, require, shall furnish the City such reasonable periodic reports and documents as it mav request pertaining to the work or services undertaken pursuant to this Agreement, the costs and obligations incurred or to be incurred in connection therewith, and any other matters covered by th/s A~eement. Consultant will maintain accounting records in accordance with generally accepted accounting principles and practices to substantiate all invoiced amounts. b. Entire Agreement - This Ageement constitutes the entire agreement between the parties and both parties acknowledge that there are no other ageements, written or oral, that have not been fully set forth in the text of this Ageement. There are attached hereto and incorporated by reference as part of this Ageement Exhibits "A" and "B". c. Amendments - The parties hereby further agree that this Agreement cannot be amended or modified without the written concurrence of both parties. d. Notices - Any notices required to be given by the City. to Consultant or by Consultant to the City shall be in writing and delivered to the parties at the following addresses: City Clerk 239 Fourth St. Bremerton, WA 98337 Casne Engineering 355 118~ Ave. S.E. Suite 100 Bellevue, WA 98005, attn: Ken Albinger e. Waiver - Failure to insist upon strict compliance with any terms, covenants or conditions PROFESSIONAL SERVICES AGREEMENT -2- 99242 of this Agreement shall not be deemed a waiver of such, nor shall any waiver or relinquishment of such right or power at any time be taken to be a waiver of any other breach. f. Compliance with State, Local and Federal Laws - Consultant agrees to comply with all applicable local, state and federal laws in performance of all services under this Agreement. g. Applicable Law; Venue - This Agreement shall be construed and interpreted in accordance with the laws of the State of Washin~on and, in the event of dispute, the venue of an,/' action brought hereunder shall be in Kitsap County Superior Court. h. Attorney Fees - The substantially prevailing party, in any htigation arising hereunder shall be entitled to its reasonable attorney's fees and court costs, including appeals, if any. 9. NONDISCRIMINATION: Consultant shall not discriminate in employment or services to the public on the basis of race, color, national origin, sex, religion, age, marital status or disability, except employment actions based on a bona fide occupational qualification. 10. TERMINATION: This Agreement may be terminated by either party for conVenience upon thirty (30) days' written notice to the other party, or for cause if either party fails substantially to perform through no fault of the other and does not commence correction within five (5) days of written notice and diligently completes the correction thereafter. Upon such termination, City will be entitled to reports showing the status of all matters upon which Consultant is advisinz the City as of the effective date of termination. IN WITNESS WHEREOF the parties hereto have executed this Agreement the date and .,,'ear indicated. Date: BY: Date: DEP.~TMENT.&L APPROVA_L: CITY OF BREMERTON BY: LYNN' S. HORTON, Mayor APPROVED AS TO FORM: GLENNA MALANCA, City Attorney RECEIVED FOR FILING: K.ATHLEEN L. McCLUSICEY, CITY CLERK PROFESSIONAL SERVICES 99242 AGREEMENT -3- ECASNE ENOINEERING, Electrical Engineering Consultants 3~ - 118TH AVE. SE, SUITE 10~, ~E~J~/UE, WA 98006 July 15, 1999 City of Bremerton 3027 Olympus DHve Bremerton WA 98310 Attention: Torn Knuckey, Senior Engineer Subject: Wastewater Pump Station OW.2 Final Electrical Design Scope and Fee Estimate John: A. To complete the design of OW-2 from the DOE submittal stage, we propose the following scope and fee estimate: 1. Project kickoff meeting. 2. Coordinate three-phase upgrade cf service at 430V with Puget Power. 3. Provide an electrical site plan and elevation drawing with various installation details. 4. Provide a detailed ccntroi panel elevation drawinG. 5. Provide control-wiring diagrams for ail pumps, sensors floats intrusion alarms and indication including points to the reused remote telemetw unit RTU. We will provide time for a coordination and review meeting late in the design to review all the drawings with the civil/mechanicai desiGr~. VVe will accomplish our own quality control review and incorporate all comments in a final set of drawings and specifications. Provide wd~en description of programmed operation. We will include a pre- approved list of hardware integrators qualified to provide the power and control panel integration. The C;ty may choose who will be specified to program the pump station. The PS WB-3 program will be reused to the maximum extent possible. 8. Additional engineering services - not tc be completed without prior written authofizati¢:~ by the City. We can comple~ the 90% design by July 30~ if started this week. We will work to final design by Aug~xst 8% EXHIBIT A Beifevue, W, ph: (~25) 45-¢-3555 fax: (,¢25) 45,¢.8922 G:'~DCCS%ggt99048 ~mmmrton CW-2%99048.302\7-14.-gg Tom Knuckey.ccc ".,'VA ph: (509) 922-7897 fax: (509) 922-?~8 Mr. Tom Knuckey July 14, 1999 Page 2 ~. The features we will incorporate into the final design are the following: 1. Pumps have changed to three 50-75 hp VFD operated units. Two of these pumps will operate at peak demand. 2. Standby power will be provided as either ~ diesei or natural gas fired engine generator. It will be sized to support t'Jvo pumps. 3. The overflow 8 level sensor/tota!izer will be moved into the new pump station enclosure and wired to the existing RTU. 4. An ultrasonic level sensor will be used for level sensing, VFD pump control a~d alarming, Backup float switches will provide alarming and pump control at VFD preset speeds. 5. Limit switches will monitor check valves in the valve vault. 6. A magnetic flowmeter wili be provided in a separate vault. The flowmeter will be monitored and the flow signal sent via teJemetw. 7. Line power conditioning witJ be Cesigned for both the FLC and the RTU. 8. Al! digital and analog signals will be wired to an RTU terminal block. Those inputs that can be input now wiil be wired imp the existing RTU. Some inputs wil! be commaned. Others will be ie,ff until a larger RTU is provided in a future telemetry upgrade. 9. A submi.ffal will be provided a~ 90% complete for detailed review of control, instrumentation and programming features. Ptease call if you have any further questions regarding the scope of this prooosa Sincerely, CASNE ENGINEERING, INC. Kenneth L. Albi~ e~r, P.E. Municipal Department Manager CC John Poppe, Wastewater Manager Pat Coxon, WWTP Manager \~WILBUR\VOL~\E~OCS'~Sr~,990-'8 Bre.m, enon C'.;'-2\cJ@048._~02,.7-14-99 Tern Kn~cke7.¢=c ..........T~'~ _~=_~¢-c:c~ !5:35 --.~SNE E!'qG~.NEE.=.ING -- 425454~,_==j~ F.~..~.~. ~... CASNE ENGINEERING, INC. FEE ESTIMATE WORKSHEET ~;ectdcal Er~.qineedn.~ Consultan~ /" Client Name CITY OF BRE. MERTON \ i/' Date 7-IZ.-99 "'~ Project Name UPGRADE OW-2 - FINAL DESIGN File FEEST-14-99 r, LProject Number 99048.302 . ) ~,, Tab FEEST ~ Tasi~ I Labori Code Desct;Cilon of Ta~k PROJECT KICKOFF MEETING COORDINATE WITH PUGET SITE PLAN, ELECTRICAL ELEVATIONS & DETAILS CONTROL PANEL EL_mv'ATIONS Project Sen or Engineerl Designer Auto Manage' Engine~r (ENGR) (DES) CAD (PM) (SE) $110 $99 $~ S70 ~0 6 12 16 16 2O !6 CONTROL WIRING DIAGRAMS I 18 15 CONTROL WIRING DIAGRAMS !1 14 7 DESIGN REVIEW MEETING/SITE VISIT 12 PROGRAMMING DESCRIPTIONS 12 ADDITIONAL ENGINEERING SERVICES I0 QC REVIEW 6 (wP) Total S594 $1,188 $2,94O $2,682 21.806 SI,188 $!,376 $990 $663 Total Hours, 6 120 I 54 4 Expense Computation: -, THE ABOVE RATES & FEES QUOTED ARE VALID FOR A PER/OD OF 90 DAYS. Subtotai~ $15,968 Expenses! $632 TOTAL[. $16,800 EXHIBIT B TOTAL =. P_,' AGENDA BILL BREMERTON CITY COUNCIL 1. SUBJECT: FOR AGENDA OF: July 28, 1997 Fluoridation Equipment Disposition ORIGINATING DEPT: Public Works & Utilities ORIGINATOR: W.E. Sampley , "3 DATE SUBMITTEDt July 13, 1997 2. CLEARANCES: (C--meat on b~}, ~f~ ~/~) 3. EXHIBITS: DirectorPW&U /~./.{,,'~"fZ~ ~, ~,37 · (1)MayorHortonMcmoof6/28/99 City Attorney (~//j~-~ ~~.-_ · (2) Engineering .Merno o£6/25/98 City Treasurer ~ .- i~ ~--~C._ ' - · tCl~ano 04: -/' /Iq [~q Purchasing Manager Operations Committee Comm. ENDORSEMENT ~ INFORMATION APPROVED BY COIifNCIL PRESIDENT FOR SUBMITI'AL: 4. SUMMARY STATEMENT AND REQUIREMENT FOR COUNCIL ACTION: The recommendation before the City Council is that they approve the Mayor's plan for the disposkion of fluoridation equipment as follows: · Surplus and sell the fluoride anal,vzer · Leave the chemical piping, injection yard piping and storage tank in place, and · Surplus and remove kems 7 thro ~ugh 13 to either sell or maintain as water/wastewmer milky inventory, as shown in exhibit (2). 8. RECOMMENDATION: That the City Council approve Mayor Hortoffs proposal for disposition of fluoridation equipmem. 9. RESPONSIBLE OFFICIAL: ENFORCEMENT OFFICIAL: EXPIRATION DATE: REVIEW DATE: PULLED TABLED COUNCIL DIRECTIVE: APPROVED 10. NOTICE OF ACTION DISAPPROVED AMENDED DATE:~ 11. AGENDA BILL NO: 2. CLEARANCE COMMENTS: 5. IMPACT ON NON-PASSAGE: Sale ofequipmem that might be required to be purchased again at significantly greater cost. 6. IMPACT ON STAFFING, BUDGETS, FACILITIES~ EQUIPMENT OR OTHER RESOURCES: NONE 7. RESEARCH SOURCES: { ~970122_1 .ab} June 28, 1999 To: City Council From: Lynn S. Hortorg Mayor Re: Recommendation - Fluoridation Equipment Disposition I have completed my evaluation of alternatives for disposition of the fluoridation equipment currently installed at the Corrosion Control Facility. I have carefully considered the alternative scenarios presented in the attached memo from Tom Knuckey to Gene Sampley regarding this issue. In summary, there are four classifications of installed equipment to be considered: · Equipment unique to the fluoridation process, · Equipment that is not salvageable and has no residual value if removed, · Equipment that can be removed as surplus and sold, and · Equipment that can be removed and used by the water or sewer utility in other processes. In considering my recommendation, I do not believe it to be in the ratepayers' interest to destroy equipment for the sake of removal if it has a future beneficial use. Also, consideration was given to the benefits of leaving a portion of the system in place, for additional treatment requirements, due to future regulations. Staff has advised me that this is an excellent point in the system to facilitate these contingencies. However, it is recognized that there is pressure to remove as much of the system as possible to satisfy opponents to fluoridation. Because of these considerations it is my recommendation that Alternative 2, as described in the attached memo, is in the best interest of the City and its Water Utility; e.g., · Surplus and sell the fluoride analyzer, · Leave the chemical piping, injection yard piping and storage tank in place, and · Surplus and remove items 7 through 13 to either sell or maintain as water/wastewater utility inventory. If the Council would like to discuss this recommendation in more detail, please contact me. C: W. Eugene Sampley, Director of PW&U Gene Sampley; Fluodde Eqpt Disposition.doc Page 1 ENGINEERING DIVISION MEMORANDUM TO: Gene Sampley FROM: Tom Knuckey DATE: June 24, 1999 SUBJECT: Disposition of Fluoridation Equipment Background With the adoption of Ordinance No. 15.02.145 prohibiting fluoridation, a decision must be made regarding use of the fluoridation portion of the Corrosion Control Facility, and disposition of the fluoridation equipment installed in the facility. The following table presents the fluoridation equipment installed in the Corrosion Control Facility, along with estimated shelf and salvage values. The information in this table is used in the discussion of altematives that follows. Item Eqpt Description Amt. Shelf Value Salvage Value Recom mended No. No. (Total, Est.) (Est. at 60% of Disposition if Shelf Value) Removed 1. ME-4 Fluoride 1 ! $8,000 $4,800 ID and Dispose as Analyzer i surplus 2. N/A Chemical $10,000 $0 Destroyed in Piping (Installed removal, dispose Value) 3. N/A Injection Yard $3,000 $0 Abandon in-place Piping (Installed Value) 4. T-3 Storage Tank I $15,000 $0 Destroyed in removal, dispose 5. N/A Process 20 $5,500 $3,300 ID and Dispose as valves surplus Gene: Sampley - Fluoride E~Ipt Disposition.doc Page 6. FS-2~2 Flow Switch I $575 $345 ID and Dispose as surplus 7. P-4 P- Metedng 2 $16,000 $9,600 ID and Dispose as 5 Pumps surplus 8. '1 VCP-P4 Control Panels 2 Included in Included in sale ID and Disposeas VCP-P5 (Integral to sale pdce of price of surplus Metering Metering Metering Pumps P-4 & Pumps Pumps 5) 9. M-3 Mini- 2 $7,500 $4,500 ID and Dispose as M-4 Magmeters surplus 10. M-6 Rotameter 1 $750 $450 ID and Dispose as surplus 11. PI-214 Pressure 2 $750 $450 ID and Dispose as PI-215 Gages with surplus diaphragm isolaters 12. PS-214 Pressure 2 $1,200 $720 ID and Dispose as PS-215 Switches with surplus diaphragm isolaters 13. LT-203 Ultrasonic I 1 $1,000 t $600 ID as surplus, Use Level IndicatorI elsewhere in the ~ water system Total $69,275 $24,765 Values Alternatives Three alternatives have been identified for disposition of the fluoridation equipment installed in the Corrosion Control Facility. The alternatives are 1.) Removal of only the equipment specifically required for fluoridation; 2.) Removal of high cost equipment; and 3.) Removal of all equipment. Equipment removed under each of the scenarios would be identified as surplus and either used elsewhere in the City or sold. Each of the alternatives are discussed in the following text. Alternative No. 1 - Removal of Fluoridation Specific Equipment The only piece of equipment that is specifically required for fluoridation at the facility is the Fluodde Analyzer. Under this alternative, the fluodde analyzer would be removed; however, the chemical metering capabilities of the facility would remain intact. This is beneficial since the facility would be available for emergency chlorination under this scenario. Although not currently required, additional chemical metering at the facility may be needed to 2 Gene Samp!~y -~ Flu0ddeEqpt Disposition.doc : Page 3 i meet future ddnking water regulations concerning disinfection. would be immediately available for this service. Estimated Salvage Value of Item No. 1 Less Demolition and Removal Costs Net $4,700 Under this scenario, the facility $4,800 $100 Alternative No. 2 - Removal of High Cost Equipment and Devices As presented in Altemative No. 1, future ddnking water regulations may require chemical addition at the facility for issues concerning disinfection. Under this alternative, the majority of the chemical piping would remain intact, however the high cost equipment and devices that can be readily removed without destroying the chemical piping would remain in place. Should chemical addition at the facility be required in the future, the devices removed under this scenado would be replaced and chemical addition could be expediently installed. The facility would not be available for emergency disinfection under this scenario. Estimated Salvage Value of Items No. 1 & 7-13 Less Demolition and Removal Costs Net $20,370 $21,120 $750 Altemative No. 3 - Removal of all Fluoridation Equipment This altemative would remove the fluodde storage tank, along with all fluoridation piping, valves, devices and equipment. Since the costs associated with removing the fluoride storage tank intact are anticipated to exceed the resale value of the tank, this alternative assumes that the tank would be destroyed dudng removal. Following removal of the fluoridation equipment, the fluoridation area of the facility would be used for storage. Estimated Salvage Value of All Items Less Demolition and Removal Costs $24,765 $3,OOO 3 :, Gene Sampley - Fluoride Eqpt: DisPosition.doc ~ Page Net $21,765 Recommendation Altemative No. I is recommended since it would provide an emergency chlorination facility at Reservoir No. 4. Maintaining the chemical metedng capabilities at the facility is also beneficial since there is a potential that more chemical addition may be required to meet future ddnking water regulations. If sale of equipment is selected, Alternative No. 2 would be recommended since it would generally maintain the integrity of the chemical process piping. 4 PUBLIC WORKS AND UTILITIES 3027 Olympus Drive · Bremerton, WA 98310-4799 · (360) 478-5318 · FAX (360) 478-5018 MEMORANDUM July 19, 1999 To; From: Re: Mayor Horton City Council ~ W. Eugene Sampley Alternate U~es of Fluoride Equipment At the June 16 meeting of the City Council additional information was requested for alternate uses of the fluoridation equipment for the Council's consideration in determining the disposition of fluoride equipment installed at the Corrosion Control Facility (CCD. The following more deafly presents alternatives discussed at that meeting. Emereencv Chlorination at Corrosion Control Facility - The existing fluoride equipment at the CCF could be used for emergency chlorination for disinfection of the City's water supply. Discussion: If disinfection equipment were to fail at the system intake or at one of the wells that discharge into the primary transmission main, or in the unlikely but possible event of bacteriological contamination emergency chlorination could be accomplished at the CCF. The City operates under strict regulations regarding disinfection contact time (CT) and minimum chlorine residuals at the entrance point to the distribution system. This system would be configured as follows: Tee offthe existing supply line from the West 440 Zone to provide for water supply into top of existing Tank #3. Place measured amount of NSF approved powdered calcium hypochlorite into tank followed by water to make desired strength disinfection solution. Use the existing pumps, carrier water piping, injection line piping, valving, and flow monitoring equipment to inject the amount in gallons per hour per million gallons necessary to achieve the desired disinfection chlorine residual. Use the existing pre-treatment chlorine residual analyzer and perform grab samples from the post-treatment sample tap to monitor the results of injection and adjust dosage or solution strength. A simple modification of sample piping would allow for using the pre- treatment chlorine analyzer for alternating between pre- and post-inject/on samples. Emereenc¥ Water Sunul¥ - The existing fluoride equipment at the CCF could be used for emergency water supply. Discussion: When construction has temporarily caused disruption of water supply to a particular area or when some major system disruption has caused water to not be available through normal m~ns the Equal Opportunity Employer CCF could provide an emergency water supply. At 6000 gallons per full tank, approximately 1,200 individuals could have access to 5 gallons each. This system would be configured as follows: Tee offthe existing supply line from the West 440 Zone and tap the 36" transmission main to provide for two possible water supply sources to discharge into the top of existing Tank #3. Place a measured amount of NSF approved powdered calcium hypochlorite into tank followed by water to make the desired strength of disinfection solution. Tee offthe existing drain line for Tank #3 for a chlorine residual grab-sample port and for distribution of chlorinated, emergency water. Repeat the process as necessary for the emergency need. Chloramination for Control of Disinfection Byproducts Chioramination by ammonia injection could be used to control disinfection by-products (DBPs) with Stage 2 water quality regulations being considered by EPA. Discussion: Currently, the City has no problem with DBPs and may fall within the allowable parameters for Stage 2 regulatory controls; however, there is no certainty concerning this requirement. The following reformation was provided by Paul Swaim of Montgomery Watson, the City's consultant for the CCF The fluoride system area is about the same size as that necessary to install aqua ammonia feed facilities to chloraminate at Reservoir 4. Contact time (CT) has already been met prior to this point; so, it would be a good location to add ammonia. I have not reviewed any disinfection by- product (DBP) d~a from the City's distribution system to recall if Stage 2 regulations will present problems for the City in a few years. However, if Trihalomethane (THM) and Haloacetic Acid (HAA) levels are high enough for the City to consider a measure to lower DBPs, then you have the area already built. Since ammonia doses will be low, the single chemical tank will be sufficiently large to provide many weeks of ammonia storage and also accept a full tanker delivery. The HDPE manufacturer claims the tank material is compatible with aqua ammonia. We'd have to check the material compatibility with the metering pumps and other metalwork. Obviously, there are many other issues associated with ammoniation such as how to handle the well supplies to switch the entire City system to chloramine residual. Another potential use of the fluoride area would be for a hypochlorite booster chlorination station. (Discussed above) Many facilities have used HDPE for hypochlorite storage, and NaOC1 and NaOH are fairly compatible; also, the metering pump components would need to be checked. fi'you have questions or if we eau provide additional information, please contact me. AGENDA BILL BREMERTON CITY COUNCIL 1. SUBJECT: 9RDINANCE NO. Authorizing the Issue of General Obligation Bonds to Refinance the Olympic Course at Gold Mountain Golf Complex and Accepting the Purchase Offer of Seafirst Bank. . FOR AGENDA OF: 21-Jul-99 ORIGINATING DEPT: Treasurer ORIGINATOR: - ~ -~-~ Rich Hanna DATE SUBMITTED: -- 2. CLEARANCES: ~.~.ment of back if necessary) Dir. Parks and Rec. '/~'~,~--/~,~'"c~'4--~,/ Dir. Admin Operations ENDORSEMENTS MAYOR~ 3. EXHIBITS: Bond Ordinance J~o. '~(o (o 2_ Official Statement Purchase Offer (At Second Reading) INFORMATION __ APPROVED BY COUNCIL PRESIDENT FOR SUBMITTAL: COUNCIL PRESIDENT ' '~ 4. SUMMARY STATEMENT AND REQUIREMENT FOR COUNCIL ACTION: The City currently has outstanding $4,605,000 of Limited-Tax General Obligation Bonds which were issued to provide funds for the construction of the Olympic Course at Gold Mountain. These bonds mature through the year 2007. The proposed ordinance will refinance the current bond issue with a new one which will be structured to mature through the year 2018. The refinancing will provide a lower annual debt severice obligation over a longer time period. This in turn will provide the golf course operation with greater financial flexibility both in current operations and in future capital improvements to the courses. The total net-present-value cost of the orriginal issue and the refunding issue are virtually the same. 8. RECOMMENDATION: ,,,,Motion to pass Ordinance No. '~authorizing the refunding bond issue on second reading and to accept the '~,, purchase offer of Seafirst Bank. 9. RESPONSIBLE OFFICIAL: ENFORCEMENT OFFICIAL: EXPIRATION DATE: REVIEW DATE: Treasurer Mayor Dec. 1,2018 N/A PULLED TABLED COUNCIL DIRECTIVE: 10. NOTICE OF ACTION APPROVED DISAPPROVED 11. AGENDA BILL NO: 2. CLEARANCE COMMENTS: 5. IMPACT ON NON-PASSAGE: The City will continue with the orriginal bond issue. This issue will place significant cash-flow strains on the golf course operations beginning in the year 2001. 6. IMPACT ON STAFFING, BUDGETS, FACILITIES, EQUIPMENT OR OTHER RESOURCES: Debt service will be extended by 11 years. The net-present-value cost of the refunding issue will be almost the same as the orriginal issue. 7. RESEARCH SOURCES: Golf course operating history and fee analysis. Seafirst Bank. City's bond counsel. .51 Banc of America Securit.._., LLC BankofAmerica Jane Towe~ Vice President NW Public Finance Honorable Mayor and City Council City of Bremerton 239 4th Street Bremerton, Washington 98337 RE: City of Bremerton, Washington $4,520,000 Limited Tax General Obligation Refunding Bonds, 1999 July 28, 1999 Honorable Mayor and City Council: Bane of America Securities LLC (the "Underwriter") offers to purchase from the City of Bremerton (the "Issuer") all of the above-described Bonds (the "Bonds"), on the terms and based upon the covenants, representations and warranties set forth below and in Appendix A, which is incorporated into this agreement (the "Purchase Agreement") by reference. Appendix A contains a brief description of the Bonds, including principal amounts, maturities, interest rates, purchase price, and the proposed date and place of delivery and payment (the "Closing"). Other provisions of this Purchase Agreement are as follows: 1. Prior to the Closing, Issuer will approve a Preliminary Official Statement and will pass an ordinance authorizing the Bonds (the "Bond Ordinance") with such changes as are requested by the Issuer and its counsel. The Underwriter is authorized by Issuer to use these documents and the information contained in them in connection with the public offering of the Bonds and the Final Official Statement in connection with the sale and delivery of the Bonds. 2. Issuer, to the best of its knowledge, represents and covenants to the Underwriter that: (A) It has, and will have at the Closing, the power and authority to enter into and perform this Purchase Agreement, to pass the Bond Ordinance and to deliver and sell the Bonds to the Underwriter; (B) This Purchase Agreement and the Bonds do not and will not conflict with, or constitute or create a breach or default under, any existing law, regulation, order or agreement to which Issuer is subject; (C) Other than the Bond Ordinance, no governmental approval or authorization is required in connection with the sale of the Bonds to the Underwriter; (D) The Preliminary Official Statement (hereinafter defined) with corrections, if any, noted by the Issuer and its counsel, which is "deemed final" as of its date and (except as to matters corrected or added in the Final Official Statement including offering prices, interest rates, selling compensation, delivery dates, and other information dependent on such matters) as of this date, is accurate and complete in all material respects as of its date to the knowledge and belief of the officers and employees of the Issuer responsible for its review, after due review; (E) The Issuer hereby ratifies, approves and confirms the distribution of the Preliminary Official Statement with respect to the Bonds, dated July 22, 1999 (together with the Appendices thereto, any documents incorporated therein by reference, and any Banc of America Securities LLC member NYSE/NASD/SIPC, is a subsidiary of Bank of America Corporation 800 Fifth Avenue, Floor 34, Post Office Box 34662, Seattle, Washington 98124 Telephone (206) 358-8991, Telefax (206) 358-8818, jane.d.towe~@bankofamerica.com The City of Bremerton _ July 28, 1999 Page 2 o supplements or amendment thereto, the "Preliminary Official Statement"), in connection with the public offering and sale of the Bonds by the Underwriter prior to the availability of the Official Statement and deems such Preliminary Official Statement final as of its date for purposes of paragraph (b)(1) of the United States Securities and Exchange Commission Rule 15c2-12 (the "Rule"), except for the omission of such information as may be permitted by the Rule; (F) The Issuer agrees to cooperate with the Underwriter to permit the Underwriter to deliver or cause to be delivered, within seven business days after this Purchase Agreement and in sufficient time to accompany any confirmation that requests payment from any customer of the Underwriter, copies of a Final Official Statement (the "Final Official Statement") in sufficient quantity to comply with paragraph (b)(4) of the Securities and Exchange Commission ("SEC") Rule 15c2-12 and the rules of the Municipal Securities Rulemaking Board ("MSRB"); (G) The Issuer will have made an undertaking to provide continuing disclosure to meet the conditions of paragraph (d)(2) of the SEC Rule as required under paragraph (b)(5) of the Rule as provided in the Bond Ordinance. The Underwriter agrees to deliver three copies of the Final Official Statement to each of the nationally recognized municipal securities information repositories on the business day on which the Final Official Statement is available, and in any event no later than seven business days after the date thereof. The Underwriter shall have the fight to cancel this Purchase Agreement by notifying the Issuer of its election to do so if, aRer the execution of this Purchase Agreement and prior to the Closing: (A) A decision by a court of the United States or the United States Tax Court shall be rendered, or a ruling or a regulation (final, temporary, or proposed) by or on behalf of the Treasury Department of the United States, the Internal Revenue Service or other governmental agency shall be issued and in the case of any such regulation, published in the Federal Register, or legislation shall have been introduced in, enacted by or favorably reported to either the House of Representatives or the Senate of the United States with respect to federal taxation upon interest received on bonds of the type and character of any of the Bonds which, in the reasonable judgment of the Underwriter, materially adversely affects the marketability of the Bonds or their sale by the Underwriter, at the contemplated public offering prices; or (B) The United States shall have become engaged in hostilities which have resulted in declaration of war or national emergency, or other national or international calamity or other event shall have occurred or accelerated to such an extent as, in the reasonable opinion of the Underwriter, to have a materially adverse affect on the marketability of the Bonds; or (C) There shall have occurred a general suspension of trading on the New York Stock Exchange; or The City of Bremerton - July 28, 1999 Page 3 (D) A general banking moratorium shall have been declared by United States, New York State or Washington State authorities; or legislation shall hereafter be enacted, or actively considered for enactment, with an effective date prior to the date of the delivery of the Bonds, or a decision by a court of the United States shall hereafter be rendered, or a ruling or regulation by the Securities and Exchange Commission or other governmental agency having jurisdiction on the subject matter shall hereafter be made, the effect of which is that: (i) The Bonds are not exempt from the registration, qualification or other requirements of the Securities Act of 1933, as amended and as then in effect, or the Securities Exchange Act of 1934, as amended and then in effect, or (ii) The Bond Ordinance is not exempt from the registration, qualification or other requirements of the Trust Indenture Act of 1939, as amended and as then in effect, or (E) A stop order, ruling or regulation by the Securities and Exchange Commission shall hereafter be issued or made, the effect of which is that the issuance, offering or sale of the Bonds, as contemplated herein or in the Final Official Statement, is in violation of any provision of the Securities Act of 1933, as amended and as then in effect, and which, in its reasonable judgment, adversely affects the marketability of the Bonds or the market price thereof. 5. The Underwriter's obligations hereunder are also subject to the following conditions: (A) At or prior to the Closing, Issuer will deliver, make available to the Underwriter, or have adopted: (i) The Bonds, fully registered in book-entry form only in the name of Cede & Co., as bond owner and nominee for The Depository Trust Company; (ii) A certificate from an authorized officer of Issuer, in form and substance acceptable to the Issuer and the Underwriter, stating that execution of the Certificate shall constitute execution of the Final Official Statement by the Issuer, that the Final Official Statement attached thereto, to the knowledge and belief of such officer, after due review, as of its date, did not and as of the date of Closing, does not contain any untrue statement of a material fact or omit any statement or information which is necessary to make the statements therein, in the light of the circumstances under which made, not misleading, and that the representations of the Issuer contained in this Purchase Agreement were true and correct when made and are true and correct as of the Closing; and that there has not been any material adverse change in the normal operations or financial condition of the City, nor to the best of the City's knowledge, to the general economy of the City since the date of the Preliminary Official Statement, except as disclosed in the Official Statement or any supplement thereto; (iii) The approving opinion of Bond Counsel dated the day of Closing in the form attached to the Official Statement; The City of Bremerton July 28, 1999 Page 4 (iv) The Underwriter's obligations are subject to the issuance of a municipal bond insurance policy on the Bonds by MBIA Insurance Corporation ("MBIA"), assignment to the Bonds of a rating of "Aaa" by Moody's Investors Service, and assignment to the Bonds of an underlying rating of A3 by Moody's Investors Service; (v) The following documents executed by authorized officers of the Issuer: (a) A certificate, dated the day of the Closing to the effect that no litigation or other proceedings are pending or threatened in any way affecting the issuance, sale or delivery of, or security for, any of the Bonds or the collection or application of the taxes to be used for the payment of principal and interest on the Bonds. (b) A certificate setting forth the facts, estimates and circumstances in existence on the date of Closing which establish that it is not expected that the proceeds of the Bonds will be used in a manner that could cause the Bonds to be "arbitrage bonds" within the meaning of Section 148 of the Intemal Revenue Code and any applicable regulations thereunder. (c) Such additional certificates, instruments or opinions or other evidence as the Underwriter may deem reasonably necessary or desirable to evidence the due authorization, execution, authentication and delivery of the Bonds, the truth and accuracy as of the time of the Closing of the Issuer's representations and warranties, and the conformity of the Bonds and Bond Ordinance with the terms thereof as summarized in the Official Statement, and to cover such other matters as it reasonably requests. (d) A certified copy of the Bond Ordinance. Issuer will pay the cost of preparing, printing and executing the Bonds if any, the fees and disbursements of Bond Counsel, its financial advisors, bond registration, bond insurance premium and rating fees and expenses, travel and lodging expenses of Issuer's employees, and other expenses of Issuer. The Underwriter will pay fees and disbursements of Underwriter's travel expenses, and other expenses of the Underwriter. As a convenience to Issuer, the Underwriter may from time to time, as Underwriter, make arrangements for certain items for which Issuer is responsible hereunder, such as printing of the Preliminary and Final Official Statements. The Underwriter also may advance for Issuer's account when approved or authorized by the Underwriter the cost of the items for which Issuer is responsible by making payments to third-party vendors. In such cases, Issuer shall pay such costs or expenses directly, upon submission of appropriate invoices by Underwriter, or promptly reimburse the Underwriter in the event the Underwriter has advanced such costs or expenses for Issuer's account. It is understood that Issuer shall be primarily responsible for payment of all such items and that the Underwriter may agree to advance the cost of such items from time to time solely as an accommodation to Issuer and on the condition that it shall be reimbursed in full by Issuer. The City of Bremerton .... July 28, 1999 Page 5 7. This Purchase Agreement is intended to benefit only the parties hereto, and Issuer's representations and warranties shall survive any investigation made by or for the Underwriter, delivery and payment for the Bonds, and the termination of this Purchase Agreement. Should the Issuer fail to satisfy any of the foregoing conditions or covenants, or if the Underwriter's obligations are terminated for any reasons permitted under this Purchase Agreement, then neither the Underwriter nor the Issuer shall have any further obligations under this Purchase Agreement, except that any expenses incurred shall be borne in accordance with Section 6. 8. This offer expires on the date, and at the time, set forth on Appendix A. Respectfully submitted, Banc of America Securities LLC Vice President Accepted July 28, 1999 City of Bremerton By: Its: APPENDIX A (a) Purchase Price: of Closing (bi Dated Date: August 15, 1999 (c) Par: $ 4,520,000 (d) Denominations: $5,000, or integral multiples thereof (e) Form: Book-entry only (t') Interest Payment Dates: December I and June 1, commencing December 1, 1999 (g) Maturity Schedule: Bonds shall mature on December 1 of each year and bear interest as follows: DESCRIPTION OF BONDS $4,472,055.05 ($98.939271 per $100), plus accrued interest from the dated date to the date Due Yield Due Yield December1 Amount Rate or Price December1 Amount Rate or Price 1999 $ 65,000 3.80% 100 2009 $ 230,000 4.80% 100 2000 45,000 4.00 100 2010 240,000 4.85 4.90 2001 165,000 4.10 100 2011 255,000 4.90 4.95 2002 170,000 4.20 100 2012 265,000 4.95 5.00 2003 175,000 4.30 100 2013 280,000 5.00 5.05 2004 185,000 4.40 100 2014 300,000 5.05 5.10 2005 195,000 4.50 100 2015 300,000 5.10 5.15 2006 200,000 4.60 100 2016 325,000 5.15 5.20 2007 210,000 4.70 100 2017 340,000 5.20 5.25 2008 220,000 4.75 100 2018 355,000 5.25 5.30 (h) (ii For Information Purposes Only: Gross Interest Cost Plus: Original Issue Discount Plus: Underwriter's Discount Net Interest Cost Net Interest Cost (%) Optional Redemption: The Bonds maturing on and after December 1, 2010, are subject to redemption at the option of the Issuer on and after December 1, 2009, in whole or in part on any date (maturities to be selected by the Issuer and by lot within a maturity in such manner as the Registrar shall determine) at a price of par plus accrued interest, if any, to the date fixed for redemption. Closing Date: August 17, 1999 Offer Expires: 11:59 p.m. July 28, 1999 Bond Counsel: Gottlieb Fisher & Andrews PLLC $ 2,645,626.51 14,270.95 $ 33,674.00 $ 2,693,571.46 5.070167% CITY OF BREMERTON, WASHINGTON ORDINANCE NO. 4662 AN ORDINANCE of the City of Bremerton Washington relating to the incurrence of indebtedness; providing for the sale and issuance of $4,520,000 principal amount limited tax general obligation refunding bonds, 1999, to advance refund and defease a portion of the City's Limited Tax General Obligation Bonds, 1994; providing for the date, denominations, form, terms, registration privileges, maturity, interest rates and covenants of the bonds; establishing a debt service account for the bonds; authorizing the execution of an escrow agreement and providing for the sale and delivery of such bonds to Banc of America Securities LLC, Seattle, Washington WHEREAS, pursuant to Ordinance No. 4491, the City has heretofore issued and sold its 1994 Bonds, of which $4,605,000 in aggregate principal amount are currently outstanding; and WHEREAS, the City reserved the right to advance refund and defease all or a portion of the 1994 Bonds pursuant to a refunding or defeasance plan; and WHEREAS, pursuant to chapter 39.53 RCW, the City is authorized to sell and issue, without an election, limited tax general obligation bonds of the City to refund the 1994 Bonds; and WHEREAS, the refunding of the 1994 Bonds will provide for a modification and restructuring of the debt service requirements; and WHEREAS, the incurrence of such indebtedness by the City will not cause the total indebtedness of the City to be incurred without the assent of the voters of the City to exceed the limitations set forth in Chapter 39.36 RCW; and WHEREAS, the City deems it necessary and advisable that $4,520,000 in principal amount of Bonds now be sold and issued to provid, funds for the Refunding Plan; and WHEREAS, Banc of America Securities LLC has offered, by way of the Purchase Agreement, to purchase such limited tax general obligation refunding bonds upon the terms and conditions hereinafter set forth; NOW, THEREFORE, THE CITY OF BREMERTON DOES ORDAIN AS FOLLOWS: Section 1. Definitions. Unless the context otherwise requires, the terms defined in this section, for all purposes of this Ordinance (including the recitals hereto) and of any ordinance supplemental hereto, shall have the meanings herein specified; words importing the singular number include the plural number and vice versa: "Beneficial Owner" means, with respect to any Bond, the Person named on the records of the Custodian as having the right, without a physical certificate evidencing such right, to transfer, to hypothecate and to receive the payment of the principal of, premium, if any, and interest on such Bond as the same becomes due and payable. "Bonds" means the City of Bremerton, Washington, Limited Tax General Obligation Refunding Bonds, 1999, dated August 15, 1999, in an original aggregate principal amount of $4,520,000, the sale and issuance of which are authorized by this Ordinance. "Bond Register" means the registration books on which are maintained the names and addresses of the owners or nominees of the owners of the Bonds. "Book-Entry Termination Date" means the fifth business day following the date of receipt by the Registrar of the City's request to terminate the book-entry system of registering the beneficial ownership of the Bonds. "City" means the City of Bremerton, Washington, a first class city, organized and existing under State law. "City Council" means the City Council of the CitY. "Closing" means the date and time when thc Bonds are delivered to the Purchaser In exchange for payment in full therefor. "Code" means the Internal Revenue Cads of 1986, as heretofore or hereafter amended, together with all applicable rulings anti regulations heretofore or hereafter promulgated thereunder. "Custodian" means (a) The Depository Trust Company, New York, New York, or (b) any successor thereto engaged by the City to operate a book-entry system for recording, through electronic or manual means, the beneficial ownership of the Bonds, in which system no physical certificates are issued to ~he Beneficial Owners of the Bonds, but in which a limited number of physical certificates are issued to and registered in the name ofthe Custodian or its nominee, and delivered to the Custodian; provided, that such book-entry system operated by the Custodian may include the use of subsystems of recording the beneficial ownership of Bonds which are operated by parties other than the Custodian and the use of a nominee for the Custodian; and the term "Custodian," as used herein, includes any party operating any such subsystem. 2 "Depositories" means the following registered securities depositories: (a) The Depository Trust Company, 711 Stewart Avenue, Garden City, New York 11530; (b) Midwest Securities Trust Company, Capital Structures-Call Notification, 440 South LaSalle Street, Chicago, Illinois 60605; and (c) Philadelphia Depository Trust Company, Reorganization Division, 1900 Market Street, Philadelphia, Pennsylvania 19103, Attention: Bond Department. "Escrow Agreement" means that certain agreement between the City and the Escrow Trustee, dated as of Closing. "Escrow Trustee" means U.S. Bank Trust National Association, acting in its fiduciary capacity as escrow trustee pursuant to the Escrow Agreement. "Escrow Obligations" means those certain Government Obligations necessary to accomplish the Refunding Plan, as set forth on Schedule 1 to the Escrow Agreement. "Government Obligations" means "government obligations," as defined in Chapter 39.53 RCW, as now in existence or hereat~er amended. "Letter of Representations" means the Blanket Issuer Letter of Representations, dated November 19, 1997, between the City and the Custodian pertaining to the payment of the Bonds and the "book-entry" system for evidencing the beneficial ownership of the Bonds prior to the Book-Entry Termination Date. "MSRB" means the Municipal Securities Rulemaking Board. "1994 Bonds" means the City of Bremerton, Washington, Limited Tax General Obligation Bonds, 1994, in the outstanding aggregate principal amount of $4,605,000 as of this date. "NRMSIR" means a nationally recognized municipal securities information repository designated by the SEC. "Owner" means the person named as the registered owner of a Bond on the Bond Register. "Preliminary Official Statement'' means the Preliminary Official Statement pertaining to the Bonds, dated July 22, 1909. "Purchase Agreement" means the Bond Purchase Agreement for the Bonds by and between the City and the Purchaser, which written Purchase Agreement is on file with the City Clerk and is incorporated here!l~by'~his reference. "Purchaser" means Bane of America Securlties LLC. "RCW" means the Revised Code of Washington, as amended. "Refunded Bonds" means the outstanding 1994 Bonds maturing on December 1 in the years 2001 through 2007, inclusive. "Refunding Plan" means the plan to refund all of the Refunded Bonds with a portion of the proceeds of the Bonds and to pay the incidental costs and costs related to the sale and issuance of the Bonds, all as more particularly defined and described in the Escrow Agreement. "Registrar" means either of the fiscal agencies of the State in Seattle, Washington (as of the date of Closing, Wells Fargo Bank, National Association), and New York, New York (as of the date of Closing, The Bank of New York), which Fiscal Agencies are appointed from time to time by the State Finance Committee pursuant to chapter 43.80 RCW; and "Fiscal Agencies" means both such fiscal agencies. "Ordinance" means this Ordinance No. 4662 of the City. "Rule" means SEC Rule 15c2-12. "SEC" means the United States Securities and Exchange Commission. "Secretary" means the Secretary of the Board. "SID" means a state information depository. "State" means the State of Washington. Section 2. Finding, Purpose and Description of Bonds. The City Council hereby finds that the City will benefit from modifying and restructuring the debt service requirements ora portion of the 1994 Bonds. The City authorizes the sale and issuance of its "Limited Tax General Obligation Refunding Bonds, 1999" for the purpose of advance refunding and defeasing the outstanding Refunded Bonds and to pay certain "incidental costs and costs related to the sale and issuance" (as defined in RCW 39.46.070) of the Bonds. The Bonds shall be in the aggregate principal amount of $4,520,000; shall be d~st~d Aul~u~t 15, 1999~ ~hall b~ i~u~d in fully r~i~ter~d form ~n to both principal ~nd interest; shall be in the denomination of $5,000 each or any integral multiple thereof within a single maturity, shall be numbered separately in such manner and with any additional designation as the Registrar deems necessary for purposes of identification; and; shall bear interest at the rates; and shall mature on the dates and in the principal amounts, all as set forth below: Maturity Dates (December 1) Principal Amounts Interest Rates 1999 $ 65,000 3.80% 2000 45,000 4.00 2001 165,000 4.10 2002 170,000 4.20 2003 175,000 4.30 2004 185,000 4.40 2005 195,000 4.50 2006 200,000 4.60 2007 210,000 4.70 2008 220,000 4.75 2009 230,000 4.80 2010 240,000 4.85 2011 255,000 4.90 2012 265,000 4.95 2013 280,000 5.00 2014 300,000 5.05 2015 300,000 5.10 2016 325,000 5.15 2017 340,000 5.20 2018 355,000 5.25 The Bonds shall bear interest (computed on the basis of a 360-day year of twelve 30-day months) from their date or from the most recent interest payment date to which interest has been paid or duly provided for, whichever is later, payable on December 1, 1999, and semiannually thereafter on December 1 and June 1 of each year to the maturity or earlier redemption thereof. If any Bond 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 The Bonds 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 Bonds, all Bonds 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 Custodian or its nominee, and delivered to the Custodian. The Custodian shall hold each such Bond certificate in fully immobilized form for the benefit of the Beneficial Owners pursuant to the Letter of Representations until the earliest to occur of either (1) the date of maturity of the Bonds evidenced by such certificate, at which time the Custodian shall surrender such certificate to the Registrar for payment of the principal of and interest on such Bonds coming due on such date, and the cancellation thereof; (2) the Book-Entry Termination Date; or (3) the date the City determines to utilize a new Custodian for the Bonds, at which time the old Custodian shall (provided the City is not then in default of any payment then due on the outstanding Bonds) surrender the immobilized certificates to the Registrar for transfer to the new Custodian and cancellation as herein provided. For so long as any outstanding Bonds are registered in the name of the Custodian or its nominee and held by the Custodian in fully immobilized form as described in this Section 2, the rights of the Beneficial Owners shall be evidenced solely by an electronic and/or manu~l entry made from time to time on the r~oords established ~nd maintained by the Custodian in accordance with the Letter of Representations, and no certificates evidencing such Bonds shall be issued and registered in the name of any Beneficial Owner or such Beneficial Owner's nominee. 6 The City may terminate the "book-entry" system of registering ownership of the Bonds at any time (provided the City is not then in default of any payment then due on the outstanding Bonds) by delivering to the Registrar: (a) a written request that it issue and deliver Bond certificates to each Beneficial Owner or such Beneficial Owner's nominee on the Book-Entry Termination Date; (b) a list identifying the Beneficial Owners as to both name and address; and (c) a supply of Bond certificates, if necessary for such purpose. Upon surrender to the Registrar of the immobilized certificates evidencing all of the then outstanding Bonds, the Registrar shall issue and deliver new certificates to each Beneficial Owner or such Beneficial Owner's duly appointed agent, naming such Beneficial Owner or such Beneficial Owner's nominee as the Owner thereof. Such certificates may be in any integral multiple of $5,000 within a single moturity. Following such issuance, the Owners of such Bonds may transfer and exchlmS~ such Bonds in accordance with Section 10 hereof. bI~ither tho ~2ity r~or the Registrar shall have at any time any responsibility or lilbilily to any Beneficial Owner of Bonds or to any other person for any error, omission, action or failure to #ct on the part of the Custodian with respect to payment, whon due, to the Beneficial Owner of the principal and interest on the BOnds, proper recording of beneficial ownership of Bonds, proper transfers of such beneficial ownership, or any notices to Beneficial Owners or any other matter pertaining to the Bonds. Section 3. Place, Manner and Medium of Payment. Both the principal of and interest on the Bonds shall be payable in lawful money of the United States of America. Prior to the Book-Entry Termination Date, the principal and interest on the Bonds shall be paid by the Registrar to the Custodian as the Owner thereof, for the benefit of the Beneficial Owners thereof, in accordance with the Letter of Representations. From and after the Book-Entry Termination Date, interest on the Bonds shall be paid by check or draft mailed on or before the interest payment date, to the persons identified as the Owners on the fifteenth day of the month preceding the interest payment date at the addresses shown for the Owners on the Bond Register. From and after the Book-Entry Termination Date, principal of the Bonds shall be payable upon presentation and surrender of the Bonds by the Owners at the principal corporate trust office of either Registrar. Section 4. Purchase; Cancellation. Optional Redemption; Partial Redemption~ Notice; Open Market The Bonds maturing in the years 1999 through 2009, inclusive, shall not be subject to redemption prior to maturity. The Bonds maturing on or after December 1, 2010 shall be subject to redemption prior to maturity at the option of the City, in whole or in part on any date (maturities to be selected by the City and by lot within a maturity in such manner as the Registrar shall determine), commencing on December '1, 2009, at a price of par plus accrued interest to the date of redemption. Any Bond in the principal amount of greater lhan $5,000 may be partially redeemed in any integral multiple af'$5,000, l~rior to the Book-Entry Termination Date, Bonds shall be partially redeemed in accordance with the Letter of Representations. From and after the Book-Entry Termination Date, in the event of a partial redemption of a Bond, upon surrender of ~uch Bond the principal corporate trust office~ of the Resi~trar, a new Bond or Bonds (at the option of the Owner) of the same maturity and interest rate and in the aggregate principal amount remaining unredeemed shall be authenticated and 8 delivered to the Owner, without charge to the Owner therefor, in any denomination authorized by this Ordinance and selected by the Owner. Prior to the Book-Entry Termination Date, the Registrar shall give, or cause to be given, notice cfa call for redemption of any Bonds to the Custodian, as the Owner thereof, for the benefit of the Beneficial Owners thereof, in accordance with the Letter of Representations. From and after the Book-Entry Termination Date, notice of any such intended redemption shall be given by or on behalf of the City not less than 30 nor more than 60 days prior to the date fixed for redemption by first-class mail, postage prepaid, to the Owner of each Bond to be redeemed at the address appearing on the Bond Register on the day the notice is given. The requirements of this section shall be deemed to be complied with when notice is mailed as herein provided, whether or not it is actually received by the Owner. In addition, such redemption notice shall be mailed within the same tiille'periocl, postage prepaid, to the DepositOries, to each NRMSIR and to MBIA Instlrance CorporatiOn or.their successors, but such mailings 'shall not be a condition precedent lo lhe redemption of such Bonds. If such notico to the Owners shall have been given and the City shall have set aside sufficient money for the payment of all Bonds called for redemption on the date fixed for redemption, the Bonds so called shall cease to accrue interest after such redemption date, and all such Bonds shall be deemed not to be outstanding hereunder for any purpose, except that the Owners of such Bonds shall be entitled to receive payment of the redemption price and interest accrued on the principal of the Bonds to the redemption date from the money set aside for such purpose. The City reserves the right to purchase any or all of the Bonds on the open market at any time and at any price. All Bonds purchased or redeemed by the City shall be surrendered to the Registrar for cancellation. Section 5. Debt Limit Not Exceeded. The City finds and covenants that the Bonds are issued within all constitutional and statutory debt limitations presently applicable to the City. Section 6. Pledge of Full Faith, Credit and Resources. The Bonds are limited tax general obligations of the City. The City hereby irrevocably covenants to include in its budgets and to make annual levies of taxes within the constitutional and statutory tax limitations provided by law without a vote upon all property within the City subject to taxation in amounts which, together with any other money legally available therefor, shall be sufficient to pay the principal and interest on the Bonds as the same shall become due. The City 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 Ci[y expects that revenues from the op0ration ofth~ Gold Mountain Golf Complex Will be available and will'be usi~d to pay the debt service requirements on the Bonds. The City hereby irrevocably covenants that the annual tax provided for herein to be levied for the payment of the principal ofand interest on the Bonds shall be within and as a par~ of the tax levy permitted the City without ~. vote of the people and that a sufficient portion of each such'annual tax levy to be made so long as the Bonds are outstanding, together with any other money legally available therefor, shall be and is 10 hereby set aside, pledged and appropriated for the payment of the principal of and interest on the Bonds as the same shall become due. Section 7. Form of Bonds. The Bonds shall be typewritten, printed or lithographed on good bond paper in a form consistent with this ordinance and Washington law. Section 8. Execution of Bonds. The Bonds shall be signed on behalf of the City with the facsimile or manual signatures of the Mayor and the City Clerk, and shall have the seal of the city impressed or a facsimile thereof imprinted thereon. In case either or both of the officers who shall have executed any Bond shall cease to be such officer or officers of the City before the Bond so signed shall have been authenticated or delivered by the Registrar or issued by the City, such Bond nevertheless may be authenticated, delivered and issued and upon such authentication, delivery and issuance, shall be as binding upon the City as though those who signed the same had continued to be such officers of the City. Any Bond also may be signed and attested on behalf of the City by such persons as at the actual date of execution of such Bond shall be the proper officers of the City although at the original date of such Bond such persons were not such officers of the City. Section 9. Authentication and Delivery of Boncts by Registrar. The Registrar are authorized and directed, on behalf of the City, to authenticate and deliver Bonds initially issued or transferred or exchanged in accordance with the provisions of such Bonds and this Ordinance. Only such Bonds as shall bear thereon a "Certificate of Authentication" manually ,n~laut~fl by t~n ~uthnri~ed ~iltnamry ~fth~ R~8t~tr~r ~h~ll b~ v~ltd ar c~blisntorY for any 11 purpose or entitled to the benefits of this Ordinance. Such Certificate of Authentication shall be conclusive evidence that the Bonds so authenticated have been duly executed, authenticated and delivered hereunder and are entitled to the benefits of this Ordinance. The Registrar shall be responsible for its representations contained in the Certificate of Authentication on the Bonds. Section 10. Re~;istration; Transfer and Exchange. The Registrar shall keep, or cause to be kept, the Bond Register at its principal corporate trust office. The City and the Registrar, each in its discretion, may deem and treat the Owner of each Bond as the absolute owner thereof for all purposes, and neither the City nor the Registrar shall be affected by any notice to the contrary. Payment of any such Bond shall be made only as described in Section 3 hereof, but such registration may be transferred as herein provided. All such payments made as provided in Section 3 hereof shall be valid and shall satisfy and discharge the liability of the City upon such Bond to the extent of the amount or amounts so paid. The registered ownership of any Bond may be transferred. Prior to the Book- E~try To~'mination Dato, tho bene~cial ownerslfip of the Bonds may only ho transferred on the records established and maintained by the Custodian. On and after [he Book-Entry Termination Date, no transfer of any Bond shall be valid unless it is surrendered at any principal corporate trust office of the Registrar, with the assignment form appearing on such Bond duly executed by the Owner or such Owner's duly authorized agent, in a manner satisfactory to the Registrar. Upon such surrender, the Registrar shall cancel the surrendered Bond and shall authenticate and deliver, without charge to the Owner or transferee therefor (other than any governmental fees or taxes payable on account of such 12 transfer), a new Bond or Bonds (at the option of the new Owner), of the same maturity and interest rate and for the same aggregate principal amount, in any authorized denomination, naming as Owner the person or persons listed as the assignee on the assignment form appearing on the surrendered Bond, in exchange for such surrendered and cancelled Bond. On and af[er the Book-Entry Termination Date, any Bond may be surrendered at the principal corporate trust office of the Registrar and exchanged, without charge, for an equal aggregate principal amount of Bonds, in any authorized denomination. The Registrar shall not be obligated to transfer or exchange any Bond during the 15 days preceding an interest or principal payment or redemption date. The Registrar may become the Owner of any Bond with the same 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 rights of the Owners of the Bonds. The City covenants that, until all Bonds shall have been surrendered and cancelled, it will maintain a system of recording the ownership of each Bond t0hat complies with the provisions of the Code. Section 11. Mutilated, Lost, Stolen or Destroyed Bonds. If any Bond becomes mutilated, lost, stolen or destroyed, the Registrar may authenticate and deliver a new Bond of the same maturity and interest rate and of like tenor and effect in substitution therefor, all in accordance with law. If such mutilated, lost, stolen or destroyed Bond has matured, the City at its option, may pay the same without the surrender thereof. 13 However, no such substitution or payment shall be made unless and until the applicant shall furnish (a) evidence satisfactory to the Registrar of the destruction or loss of the original Bond and of the ownership thereof, and (b) such additional security, indemnity or evidence as may be required by or on behalf of the City. No substitute Bond shall be furnished unless the applicant shall reimburse the City and the Registrar for their respective expenses in the furnishing thereof. Any such substitute Bond so furnished shall be equally and proportionately entitled to the security of this Ordinance with all other Bonds issued hereunder. Section 12. Defeasance. If money and/or "Government Obligations" (as such obligations are defined in Chapter 39.53 RCW, as now in existence or hereat%r amended) maturing at such times(s) and bearing such interest to be earned thereon (without any reinvestment thereof) as will provide a series of payments which shall be sufficient, together with any money initially deposited, to provide for the payment of the principal of and interest on all or a portion of the Bonds, when due in accordance with their terms in accordance with a refunding plan adopted by the City, are set aside in a special fund (hereinat~er called the "trust account") to effect such payment and are pledged irrevocably for the purpose of effecting such payment, then no further payments need be made into the Bond Fund for the payment of the principal of and the interest on such Bonds, the Owners thereof shall cease to be entitled to any lien, benefit or security of this Ordinance except for the right to receive the money and the principal and interest proceeds on the obligations set aside in the trust account, and such Bonds shall no longer be deemed to be outstanding hereunder. 14 Section 13. Sale of the Bonds. The Purchaser has presented the Purchase Agreement to the City pursuant to which the Purchaser has offered to purchase the Bonds, under the terms and conditions provided in the Purchase Agreement, which written Purchase Agreement is on file with the City Clerk and is incorporated herein by this reference. The City Council finds that entering into the Purchase Agreement is in the City's best interest and therefore accepts the offer contained in the Purchase Agreement and authorizes the execution of the Purchase Agreement by City officials. The Bonds will be prepared at City expense and will be delivered to the Purchaser in accordance with the terms of the Purchase Agreement with the approving legal opinion of the City's bond counsel relative to the issuance of the Bonds printed on each Bond or attached thereto. Bond counsel has not been engaged to participate in the preparation or review of, or express any opinion concerning the completeness or accuracy of the official st~tl~menl or el[her disclosure documentation used in connection with the offer or sale of the Il°rots by any porsor~, and bond counsel's opinion shall so state. Bond counsel has not been retained to me, niter, and ~hall not be responsible for monitoring, the City's conlpliance with any federal law or regulations to maintain the tax-exempt status of the interest on the Bonds. Section 14. Delivery of Bonds; Temporary Bonds. The proper City officials are authorized and directed to execute and/or approve, as appropriate, all documents, including but not limited to, the final Official Statement pertaining to the Bonds and the commitment with MBIA Insurance Corporation for the issuance of a municipal bond insurance policy, and to do everything necessary for the preparation and delivery of a transcript of proceedings pertaining to the Bonds, and the printing, execution and prompt 15 delivery of the Bonds to the Purchaser and for the proper application and use of the proceeds of the sale thereof. If definitive Bonds are not ready for delivery by the date established for Closing, the City Treasurer, upon the approval of the Purchaser, may cause to be issued and delivered to the Purchaser one or more temporary Bonds with appropriate omissions, changes and additions. Any temporary Bond or Bonds shall be entitled and subject to the same benefits and provisions of this ordinance with respect to the payment, security and obligation thereof as definitive Bonds authorized hereby. Such temporary Bond or Bonds shall be exchangeable without cost to the Owners thereof for definitive Bonds when the latter are ready for delivery. Section 15. Call of Refunded Bonds for Redemption. The City hereby calls the Refunded Bonds maturing on or after December 1, 2003 for redemption on December 1, 2002, at a redemption price of 102% of the principal amount plus accrued interest. Such call for redemption shall become irrevocable upon delivery of'the Bands ag Closing. Section 16. Acquisition of~scrow Obligations. The proper City officials, in¢ludlns, but no~ limited to, the City Treasurer shall, at or prior to closing, make appropriate arrangements for the payment for and delivery of any Escrow Obligations which are to be purchased in the open m~rket purstlant to th~ R~funding l~lan; arid shall, prior to closing, deliver ar cause to be delivered to the Federal Reserve Bank in Seattle, Washin, gton, subscriptions for any Escrow Obligations which are to be acquired from the United States Bureau of Public Debt pursuant to the Refunding Plan. The maturing principal of and the interest on such Escrow Obligations, together with the Initial Cash to be provided to the Escrow Trustee pursuant to the Refunding Plan, shall be sufficient to 16 pay all of the principal of and interest to become due on the Refunded Bonds from Closing to and including December 1, 2002, when due, and to redeem on said date, all of the remaining outstanding Refunded Bonds at a redemption price of 102% of the principal amount due on the Refunded Bonds to be redeemed and interest accrued thereon to the date of redemption. The Escrow Trustee shall designate in any such subscriptions that all the principal of and interest on the Escrow Obligations subscribed for with the United States Bureau of Public Debt shall be payable to the Escrow Trustee. Such subscription may be amended as permitted by federal law. Section 17. Verification of Sufficiency of Escrow. The proper City officials, including, but not limited to, the City Treasurer are authorized and directed to obtain, prior to Closing, independent verification from a firm of independent certified public accountants that, among other things, the cash flow scheduled to be received from the Escrow Obligations, together with any uninvested initial cash, shall be sufficient to make the payments described in Section 16 hereof At Closing, if there has been any change in Escrow Obligations or cash deposited with the Escrow Trustee under this Ordinance and the EscroW Agreement, the City Treasurer shall cau'.~e the sufficiency of the Escrow Fund (as defined in the Escrow Agreement) to be verified in such manner as he shall deem necessary. Section 18. Escrow Agreement. The Escrow Agreement, in substantially the same form as the draft dated July 12, 1999, on file with the City Clerk, is hereby approved in order to accomplish the defeasance of the Refunded Bonds. The City Treaaurer ia authorized and directed to Ca) ene~ute and to deliver aeifl Escrow Aareemenh 17 on behalf of the City, to the Escrow Trustee on or before Closing, with such changes as the City Treasurer deems to be in the best interests of the City; and such execution and delivery of the Escrow Agreement shall evidence irrevocably the approval of the executed Escrow Agreement by the City; and (b) cause the Escrow Trustee to deliver notices of defeasance and redemption of the Refunded Bonds in accordance with the Escrow Agreement. Section 19. Establishment of Bond Fund; Application of Bond Proceeds. There is hereby created and established in the office of the City Treasurer a special account within the Golf Course Fund to be designated as the "Limited Tax General Obligation Refunding Bond Account, 1999" (the "Bond Fund"). The accrued interest on the Bonds received by the City upon the sale of the Bonds, if any, and any rounding amount shall be deposited into the Bond Fund and shall be applied to the payment of interest coming due on the Bonds. All of the remaining net proceeds of the Bonds shall be paid by the City to the Escrow Trustee at Closing, to be applied as set forth in the Escrow Agreement. Section 20. Tax-Exemption and Bank Qualification. The City covenants that it will not take or permit to be taken on its behalf any action that would adversely affect the exclusion of the interest on the Bonds from gross income for purposes of federal income taxation, and will take or require to be taken such acts as may be permitted by Washington law and as may from time to time be required under applicable law to continue the exclusion of the interest on the Bonds from gross income for purposes of federal income taxation. Without limiting the generality of the foregoing, the City will not invest or make or permit any use of the proceeds of the Bonds or of its other money at 18 any time during the term of the Bonds which would cause the Bonds to be "arbitrage bonds" within the meaning of Section 148 of the Code. The City covenants that it will calculate or cause to be calculated, and shall rebate to the United States, all earnings from the investment of Bond proceeds that are in excess of the amount that would have been earned had the yield on such investments been equal to the yield on the Bonds, plus income derived from such excess earnings, to the extent and in the manner required by Section 148 of the Code. The City has not been notified of any listing or proposed listing by the Internal Revenue Service to the effect that the City is a bond issuer the arbitrage certifications of which may not be relied upon. The City will take no actions and will make no use of the proceeds of the Bonds or any other funds held under this ordinance which would cause any Bond to be treated as a "private activity bond" (as defined in Section 141(b) of the Code) subject to treatment uador said Sectic~n 141 (b) as an obligation not described in Section 103(a) of the Code, ualo~s the tax ~xemption thereof is not affected. · lbo City h~reby desisnates the Bonds as "qualified tax-exempt obligations" for purposes of Section 265 of the Code (relating to the deduction by financial institutions of the interest incurred to carry tax-exempt debt), and authorizes and directs the proper City officials to execute and deliver all documents necessary to evidence such desigm~tion 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 21. Preliminary Official Statement Declaration. The City has been provided with copies of Preliminary Official Statement, prepared in connection with the 19 sale of the Bonds. For the sole purpose of the Purchaser's compliance with Securities and Exchange Commission Rule 15c2-12(b)(1), the City "deems final" the Preliminary Official Statement, as of its date, except for the omission of information on offering prices, interest rates, selling compensation, delivery dates, ratings, other terms of the Bonds dependent on such matters. Section 22. Undertaking to Provide Continuing Disclosure. This section constitutes the City's written undertaking for the benefit of the Owners and the Beneficial Owners of the Bonds required by subsection (d)(2)(ii) of the Rule. The City hereby agrees to provide or cause to be provided upon request to any person or at least annually to the 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 officia! statement" (as defined in the Rule) available from the MSRB or any other documents theret0fore provided to each then existing NRMS1R or the SID, if one is cre~ted. :. - The City further agrees to provide or cause to be provided, in a timely manner, to the aiD, if one is created, and to either the MSRB or each then existing NRMSIR, nofico ~f~ny or,he f~ll~win8 ev,n~# with rempegt to the l~ondm, if material: 20 difficulties; difficulties; perform; Bonds; Bonds; and Principal and interest payment delinquencies; Non-payment related defaults; Unscheduled draws on debt service reserves reflecting financial 4. Unscheduled draws on credit enhancements reflecting financial 5. Substitution of credit or liquidity providers, or their failure to 6. Adverse tax opinions or events affecting the tax-exempt status of the 8. 9. 10. Modifications to rights of the Owners of the Bonds; Optional redemptions of lho Bonds; Defeasances of the Bonds; Release, substitution or sale of property securing repayment of the I 1. Rating changes. After the issuance of the Bonds, so long as the interests of the Owners or Beneficial Owners of the Bonds will not be materially impaired thereby, as determined by a party unaffiliated with the City (including, without limitation, a trustee for the Owners, nationally recognized bond counsel or other counsel fa..miliar with the federal securities law), or pursuant to a favorable "no-action letter" issued by the SEC, this Section 22 may only be amended in connection with any change in legal requirements, change in law, or change in the identity, nature or status of the obligated person, or type of business 21 conducted, and only in such a manner that the undertaking of the City, as so amended, would have complied with the requirements of the Rule at the time of the primary offering, after taking into account any amendments or interpretations of the Rule, as well as any change in circumstances. 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 Bonds. This Section 22 or any provision hereof, shall be null and void if the City (i) obtains an opinion of nationally recognized bond counsel or other counsel familiar with the federal securities laws to the effect that those portions of the Rule which require this Section 22 or any such provision are invalid, have been repealed retroactively or otherwise do not apply to the City; and (ii) notifies and provides the SID, if any, and either the MSRB or each then existing NRMSIR with copies of such opinion. The right of each Owner and Beneficial Owner of Bonds to enforce the provisions of this Section 22 shall be limited to the right to obtain specific enforcement of the City's obligations under this Section 22, and any failure by the City to comply with the provisions of this undertaking shall not be a default with respect to the Bonds under this Ordinance. The City Treasurer is authorized and directed to take such further action on behalf of the City as may be necessary, appropriate or convenient to carry out the requirements of this Section 22. Section 23. Contract; Severability. The covenants contained in this ordinance shall constitute a contract between the City and the Owners of each and every Bond. The 22 City unconditionally covenants that it will keep and perform all of the covenants of the Bonds and this Ordinance. If any one or more of the provisions of this Ordinance shall be declared unconstitutional or invalid for any reason, such decision shall not affect the validity of the remaining provisions of this Ordinance or the Bonds, and this Ordinance and the Bonds shall be construed and enforced as if such unconstitutional or invalid provision had not been contained herein. Section 24. Effective Date. This Ordinance shall take effect and be in full force ten days after passage and publication of an approved summary, consisting of the title. APPROVED by the City Council of the City of Bremerton, Washington, this 28th day of July, 1999. PASSED by the City Council of the City of Bremerton, Washington, this 28th day of July, 1999. APPROVED this MIKE SHEPHERD, Council President .. day of July, 1999. ATTEST: LYNN HORTON, Mayor Kathleen McCluskey, City Clerk 23 APPROVED AS TO FORM: By. Judith Andrews, Bond Counsel PUBLISHED: EFFECTIVE DATE: ORDINANCE NO. 4662 24 PR~'~IMINARY OFFICIAL STATEMENT DA TED JUL'~ 22, 1999 BOOK-ENTRY ONLY NEW ISSUE MOODY'S RATING: Applied For NEGOTIATED (See the caption "RATING" herein.) In the opinio~ of Bond Counsel, as of the Date of Issue, and assuming the Ci~/ fulfills its covenant to comply with ce/fain recluirernents of the Internal Revenue Code of 1986, as amended (the 'Code') that must be met subsequent to the issuance of the Bor~s: interest on ti~e Bonds is excluded from gn3ss income for federal income tax pu~, and is not an item of tax preference for pu~ of determining the alternative minimum tax on individuals and corporatlor~; and the Bonds are 'qualified tax-exempt obligations' for purposes of the pa~dal intem~t expense deducl~on available un~er Section 265 of the Code. However, interest on the Bonds is included in the compulatfon of other taxe~, includtn~ without limitation ghe alternative minimum tax on corporalkm$, and may be subject to other collateral tax consequences. See 'TAX E.XEMPTION' and '0 THER TAX CONSEQUENCES' herein. CITY OF BREMERTON, WASHINGTON $4,500,000* LIMITED TAX GENERAL OBLIGATION REFUNDING BONDS, 1999 DATED: Auqust 15, 1999 DUE: December 1, as shown below The City's Limited Tax General Obligation Refunding Bonds, 1999 (the "Bonds"), are issued in fully registered form, and will be fully registered in the name of Cede & Co., as Bondowner and nominee for The Depository Trust Company ('DTC'), New York, New York. DTC will act as securities depository for the Bonds. The Bonds will be initially issued in book-entry form only in the principal amount of $5,000 each or any integral multiple thereof within a single maturity. Purchasers will not receive certificates representing their interest in the Bonds purchased. The Bonds bear interest payable on December 1, 1999 and each June 1 and December 1 thereafter until matuirty or prior redemption. The principal of and interest on the Bonds 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 Bonds remain in a "book-entry only" transfer system, the Fiscal Agent will make such payments only to DTC, which will in turn remit such principal and interest to the DTC participants for subsequent disbursement to Beneficial Owners of the Bonds as described herein under the caption "Book-Entry Only System." MATURITY' Due December Yield or Due December 1 Amount Rate Price 1 1999 $ 55,000 2009 2000 45,000 2010 2001 165,000 2011 2002 170,000 2012 2003 175,000 2013 2004 165,000 2014 2005 190,000 2015 2006 200,000 2016 2007 210,000 2017 2008 220,000 2018 (Plus accrued interestfrom August15,19§9) Amount $ 230 000 240000 255 000 265 000 280 000 290 000 305 000 325 000 340000 355 000 Rate Yield or Price The Bonds maturing on or after December 1, 2010 are subject to rectemption at the option of the City on or after December 1. 2009 as further described herein under "DESCRIPTION OF THE BONDS - Optional Redemption." The Bonds are limited tax general obligations of the City. The City has irrevocably covenanted that. unless the principal of and interest on the Bonds are paid from other sources, so long as the Bonr~s are outstanding, the City shall make annual lewes of taxes upon all property within the City subject to taxation without a vote in amounts sufficient, together with any other money legally availauie 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 ana for the prompt payment of such principal and interest. See "SECURITY" herein. The City has designated the Bonds as "qualified tax-exempt obligations" under the Internal Revenue Coae of 1996, as amended, for banks, thrift institutions and other financial institutions. See "TAX EXEMPTION" and "OTHER TAX CONSEQUENCES" herein. The Bonds are offered by the Under~vriter when, as, and if issued, subject to the approving legal opinion of Gottlieb, Fisher & Andrews, PLLC, Bond Counsel, Seattle, Washington, a copy of which opinion will be delivered with the Bonds. The Bonds in definitive book-entry form are expected to be ready for delivery through the facilities of DTC in New York, New York, on or around August 17, 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. Banc of America Securities LLC Preliminary, subject to change. Representations Neither the City nor the Underwriter has authorized any dealer, broker, salesperson or other person 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. Thi~ Official Statement does not constitute an offer to sell, nor shall there be any sale of the Bonds by any person in anv 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 guarar[tee 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 representauon 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 Bonds a signed statement substantially to the effect that this Official Statement, as of its date and as of the date of the Bonds, neither contains any untrue statement ora material fact nor omits to state any material fact necessary to make the statements therein, in light of the circumstances under which thev were made, not misleading in any material respect and that there has not been anv material ~dverse change in the normal operations or financial condition of the Citv nor, to the' best of the Citv's knowledge, in the general economy of the City since the date ofth~ 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 Bonds. subject to applicable securities laws. The Underwriter, however, 'is neither obligated to en~a~e in secondary trading nor to repurchase any of' the Bonds at the request of the~registered ~w-ners thereof and no assurance can be given that a seconda~ market for the Bonds will be available. In com~ection with the offering of the Bonds. the U, de~writer may over-allot or effect transactions that stabilize or maintain the market price of the Bonds at a level above that which might other, vise prevail m the open market. Such stabilizing, if commenced, mm' be discommued at any time. This Preliminary Official Statement, as of its date, is i. a Jbrm that is expected to be "deemed final" by the Cityfor purposes of S£C Rtde ]oc2-l.(b)(lj, but is subject to rev/sion, ame~dmem and completion m a final Official Statement that will he available within seven (7) days 2f the sale date of the Bonds. CITY OF BREMERTON Kitsap County, Washington 239 Fourth Street Bremerton, Washington 98337 (360) 478-5290 Lynn Horton MAYOR Term Expires December 31 2001 Mike Shepherd Wayne Olsen John Law Carol Arends Cecil McConnell Carlos Montgomery David Farr Lon Overson Jim Reed CITY COUNCIL Chairperson 2001 Member 2001 Member 2001 Member 2001 Member 1999 Member 1999 Member 1999 Member 1999 Member 2001 Richard Hanna Kathleen McCluskey Glenna Malanca APPOINTED CITY OFFICIALS Treasurer Administrative Services Director/City Clerk Attornev BOND COUNSEL Gottlieb, Fisher & Andrews, PLLC Seattle, Washington UNDERWRITER Banc of America Securities LLC Seattle, Washington ii TABLE OF CONTENTS Page Introduction ................................................................................................................................. l Description of the Bonds ............................................................................................................... 1 Authorization ................................................................................................................................ 4 Security ........................................................................................................................................ 4 Purpose ......................................................................................................................................... 5 Failure to Pay the Bonds at Maturity ............................................................................................. 5 Debt Payment Record ................ 5 The Advance Refunding Plan ........................................................................................................ 5 The Escrow Trustee ...................................................................................................................... 6 Sources and Uses of Funds ........ ... 6 Future Financing ........................................................................................................................... 7 Assessed Valuation Determination ................................................................................................. 7 Tax Collection Procedure .............................................................................................................. 7 Authorization of Debt .................................................................................................................... 8 General Obligation Indebtedness .................................................................................................... 8 Limits on Amount of General Obligation Indebtedness ................................................................... 8 Authorization of Short-Term Debt ................................................................................................. 9 Taxing Powers and Limitations ..................................................................................................... 9 Auditing of City Finances .............................................................................................................. 10 Authorized Investments ................................................................................................................. 10 Net Direct Debt and Estimated Net Overlapping General Obligation Debt ..................................... 12 Bonded Debt Ratios of the City. .................................................................................................12 Statutory Debt Limit Calculation .................................................................................................. Ad Valorem Tax Record of the City. ............................................................................................ 14 Ad Valorem Properiy Tax Rates in the City . ................. 14 Major Property, Taxpayers ............................................................................................................ Comparative Statement of General Fund Revenues and Expenditures ............................................. 15 Contingency Reserve Fund Year-End Balances .............................................................................. ! 5 General Fund Budget for 1999 ......................................................................................................16 Schedule of General Obligation Bond Debt Service for the City. ................................................... 17 City Profile ................................................................................................................................... 17 General and Economic Information ................................................................................................ 20 Preservation of Tax EXemption ................................................................................................... 24 Conflicts of Interest .................................................................................................................... 25 Tax Exemption ............................................................................................................................ 25 Other Tax Consequences ............................................................................................................... 25 Absence of Material Litigation ...................................................................................................... 26 Approval of Bond Counsel ............................................................................................................ 26 Continuing Disclosure.. . ,.. 26 Rating ........................................................................................................................................... 27 Under~vriting ................................................................................................................................. 28 Concluding Statement ................................................................................................................... 28 Form of Legal Opinion ...................................................................................................... Appendix A iii PRELIMINARY OFFICIAL STATEMENT CITY OF BREMERTON, WASHINGTON $4,500,000* LIMITED TAX GENERAL OBLIGATION REFUNDING BONDS, 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 Washington, furnishes this Official Statement in connection with the offering of $4,500,000' principal amount of Limited Tax General Obligation Refunding Bonds, 1.999 (the "Bonds"). This Official Statement provides information concerning the City and the Bonds. DESCRIPTION OF THE BONDS Principal Amount, Date, Interest Rate, and Maturities The Bonds will be issued in the principal amount of $4,500,000* and will be dated and bear interest from August 15, 1999 until their stated maturity or prior redemption. The Bonds will mature annually on December 1, commencing December 1, 199'9, in the amounts and will bear interest payable semi-annually, on each June 1 and December 1, commencing December 1, 1999, at the rates set forth on the cover page of this Official Statement. Interest on the Bonds will be computed on the basis of a 360-dav year of twelve 30-day months. ' ' Early Redemption and Open Market Purchase The Bonds maturing in years 1999 through 2009, inclusive, are not subject to redemption l~rior to maturity. The Bonds maturing on or after December I, 2010 are subject to redemption prior to hnaturitv at the option of the City on or after December 1, 2009 in whole or in part on any date (maturities to b~ selected by the City and by lot within a maturity in such a manner as the Registrar shall determine) at a price of par, plus accrued interest to the date fixed for redemption. Any Bond in the principal amount of greater than $5,000 may be partially redeemed in any intezral multiple of $5,000. So long as Cede & Co. is the registered owner of the Bonds, Bonds shall b~ partially redeemed in accordance xvith the Letter of Representations. In the event of a partial redemption of a Bond when the Bonds are not subject to the book-entry only system, upon surrender of such Bond the principal corporate trust offices of the Registrar, a new' Bond or Bonds (at the option of the Owner) of the same maturity and interest rate and in the aggregate principal amount remainin_o unredeemed shall be authenticated and delivered to the Owner, without charge to the O~vner therefor7 in any denomination authorized by the Ordinance and selected by the Owner. The City. reserves the right and option to purchase any or all of the Bonds in the open market at any time at any price. Notice of Redemption Prior to the Book-Entry Termination Date, the Registrar shall give, or cause to be given, notice of a call for redemption of any Bonds to the Custodian, as the Owner thereof, for the benefit of the Beneficial Owners thereof, in accordance with the Letter of Representations, From and after the book-Entry Termination Date, notice of any such intended redemption shall be eiven by or on behalf of the City not less than 30 nor more than 60 days prior to the date fixed for rec~emption by first-class mail, po}rage Preliminary, subject to change. 1 prepaid, to the Owner of each Bond to be redeemed at the address appearing on the Bond Register on the day the notice is given. These requirements shall be deemed to be complied with when notice is mailed as described above, whether or not it is actually received by the Owner. Paying Agent Principal of and interest on the Bonds 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 re~,istered owner of the Bonds, principal of and interest on the Bonds are payable by wire transfer by the-Registrar to DTC, which, in turn, is obligated to remit such principal and interest to the DTC Participants for subsequent disbursement to the Beneficial Owners of the Bonds, as further described herein under the caption "Book-Entry Only System." Form, Denomination and Registrar The Bonds will be issued in fully registered form as to both principal and interest in the denomination of $5,000 or any integral multiple thereof within a single maturity. The Bonds, when issued, will be registered in the name of Cede & Co., as registered owner and nominee of The Depository Trust Company, New York, New York ("DTC"). DTC will act as securities depository for the Bonds. Individual purchases may be made in book-entry form only. Purchasers will not receive certificates representing their interest in the Bonds purchased. So long as Cede & Co. is the registered owner of the Bonds, as nominee of DTC, references herein to the registered owners or Bond owners will mean Cede & Co. and will not mean the "Beneficial Oxvners" of the Bonds. In this Official Statement, the term "Beneficial Owner" will mean the person for whom a DTC participant acquires an interest in the Bonds. 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 depositors.' for the Bonds. The Bonds xvill be issued as fully registered Bonds, and will be registered in the name of Cede & Co. (DTC's partnership nominee). One fully- registered Bond certificate will be issued for the Bonds, in the aggregate principal amount of the Bond's. 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 Reserx'~ System, a "clearing corporation" within the meaning of the New York Uniform Commercial Code and a "clearing agency" registered pursuant to the provisions of Section 17A of the Securities Exchange Act of 1934, as amended. DTC holds securities that its participants (the "Participants") deposit with DFC. DTC also facilitates the settlement among Participants of securities transactions, such as transfers and pledges. in deposited securities through electronic computerized book-entry changes in accounts of the Participants, thereby eliminating the need of physical movement of securities certificates. Direct Participants include securities brokers and dealers, banks, trust companies, clearing corporations and certain other organizations. DTC is owned by a number of its Direct Participants and by the New York Stock Exchange, Inc., the American Stock Exchange, Inc. and the National Association of Securities Dealers, Inc. Access to the DTC system is also available to others such as banks, brokers, dealers and trust companies that clear through or maintain a custodial relationship with a Direct Participant, either directly or indirectly ("Indirect Participants"). The rules applicable to DTC and its Participants are on file with the Securities and Exchange Commission. Purchases of the Bonds under the DTC system, in denominations of $5,000 or any integral multiple thereof, must be made by or through Direct Participants, which will receive a credit for the Bonds on DTC's records. The ownership interest of each actual purchaser of each Bond ("Beneficial Owner") is in turn to be recorded on the Direct and Indirect Participants' records. Beneficial Owners will not receive written confirmation from DTC of their purchase, but Beneficial Oxvners are expected to receive written 2 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 Bonds are to be accomplished by entries made on the books of Participants acting on behalf of Beneficial Owners. Beneficial Owners will not receive certificates representing their ownership interests in the Bonds, except in the event that use of the book-entry system for the Bonds is discontinued. To facilitate subsequent transfers, all Bonds deposited by Participants with DTC are registered in the name of DTC's partnership nominee, Cede & Co. The deposit of Bonds with DTC and their re~stration in the name of Cede & Co. effect no change in beneficial ownership. DTC has no knowledge of the actual Beneficial Owners of the Bonds. DTC's records reflect only the identity of the Direct Participants to whose accounts such Bonds are credited, which may or may not be the Beneficial Owners. The Participants will remain responsible for keeping account of their holdings on behalf of their customers. 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 a~rrangements 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 Bonds are being redeemed, DTC's practice is to determine by lot the amount of the interest of each Direct Participant in Bonds to be redeemed. Neither DTC nor Cede & Co. will consent or vote with respect to Bonds. Under its usual procedures, DTC mails an Omnibus Proxy to the City as soon as possible after the record date. The Omnibus Proxv assigns Cede & Co.'s consenting or voting rights to those Direct Participants to whose accounts th~ Bonds are credited on the record date (identified in a listing attached to the Omnibus Proxy). Principal and interest payments on the Bonds will be made to DTC. DTC's practice is to credit Direct Participants' accounts on 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 pa~able date. Payments by Participants to Beneficial Owners will be ~overned by standing lnstructions and customarx' pr~ctices. as is the case with securities held for the accounts of customers in bearer form or re~istere~l in "street name," and will be the responsibility of such Participant and not of DTC, the Regi~'trar, or the City, subject to any statutory or regulatory requirements as may be in effect from time to time. Pavment Sf principal and interest to DTC is the responsibility of the City or the Rezistrar. Disbursemen~ of such payments to Direct Participants will be the responsibility of D~C, and dist~ursement of such payments to the Beneficial Owners will be the responsibility of Direct and Indirect Participants. DTC may discontinue providing its services as securities depositor3., with respect to the Bonds 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, Bond 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, Bond 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 Citv has determined that it is in the best interest of the City not to continue the book-entry system of transt~er or that interests of the Beneficial Owners of the Bonds might be adversely affected if the book-entry system of transfer is continued, the City will execute, authenticate and deliver at no cost to the Beneficial Owners of the Bonds or their nominees, Bonds in fully registered form, in the denomination of $5,000 or any integral multiple thereof within a single maturity. Thereafter, interest on the Bonds shall be paid by check or draft mailed on or before the interest payment date, to the persons identified as the O~vners on the fifteenth day of the month preceding the interest payment date at the addresses shown for the Owners on the Bond Register. Principal of the Bonds shall be payable upon presentation and surrender of the Bonds by the Owners at the principal corporate trust office of either Registrar. 3 Year 2000 Readiness Disclosure - The Bank of New York and DTC DTC management is aware that some computer applications, systems, and the like for processine the data that are dependent upon calendar dates, including dates before, on, and after January 1, 2~00, may encounter "Year 2000 problems." DTC has informed its Participants and other members of the financial community that it has developed and is implementing a program so that its systems, as the same relate to the timely payment of the distributions (including principal and income payments) to securkyholders, book-entry deliveries, and settlement of trades within DTC, continue to function appropriately. This program includes a technical assessment and a remediation plan, each of which is complete. Additionally, DTC's plan includes a testing phase, which is expected to be complete within appropriate time frames. However, DTC's ability to perform properly its services is also dependent upon other parties, including but not limited to issuers and their agents, as well as third-par~ vendors from whom DTC licenses so/~ware and hardware, and third-party vendors on whom DTC relies for information or the provision of services, including telecommunication and electrical utility service providers, among others. DTC has informed the industry that it is contacting (and will continue to contact) third-party vendors from whom DTC acquires services to: (i) impress upon them the importance of such services being Year 2000 compliant; and (ii) determine the extent of their efforts for Year 2000 remediation (and, as appropriate, testing) of their services. In addition, DTC is in the process of developing such contingency plans as it deems appropriate. The Bank of New York, the Registrar, has established a Year 2000 compliance program consisting of, among other things, updating major proprietary application systems and evaluating the Year 2000 compliance efforts of vendors of major vendor-supplied systems and certain other business partners. The Registrar believes that its Year 2000 compliance program is currentlv on schedule to meet the needs of its customers and the compliance deadlines defined by its regulators..ts of December 31, 1998, testing and renovation of the proprietary application systems that the Registrar deems "mission critical" were substantially completed and these systems are currently being used by the Registrar. In addition, all vendor supplied software systems that the Registrar deems mission critical have been tested and. based upon such testing, the Registrar believes that such systems will not be adversely affected in a material way by the date change to the Year 2000. Optional Redemption The Bonds maturing in the years 1999 through 2009, inclusive, shall not be subject to redemption prior to maturity. The Bonds maturing on or after December 1, 2010 shall be subject to redemption prior to maturity at the option of the City, in whole or in part on any date (maturities to be selected bv the Citv and by lot within a maturity in such manner as the Registrar shall determine), commencing on December 1, 2009, at a price of par plus accrued interest to the date of redemption. AUTHORIZATION The Bonds are issued in accordance with the provisions of the Constitution and applicable statutes of the State of Washington, pursuant to Ordinance No. __ (the "Ordinance") of the City Council, adopted on ., 1999. SECURITY The Bonds are limited tax general obligations of the City. Unless the principal of and interest on the Bonds are paid from other sources, so long as the Bonds are outstanding, the City has irrevocably covenanted in the Ordinance to include in its budgets and to make annual levies of taxes xvithin the constitutional and statutory tax limitations provided by law without a vote upon all property within the City subject to taxation in amounts which, together with any other money legally available therefor, shall be sufficient to pay the principal and interest on the Bonds as the same shall become due. The City has irrevocably pledged its full faith, credit and resources to the annual le~5' and collection of such taxes and for the prompt payment of such principal and interest. 4 The City has irrevocably covenanted that the annual tax to be levied for the payment of the principal of and interest on the Bonds shall be within and as a part of the tax levy permitted the City without a vote of the people and that a sufficient portion of each such annual tax levy to be made so long as the Bonds are outstanding, 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 Bonds as the same shall become due. PURPOSE The proceeds of the Bonds will be used to advance refund the City's Limited Tax General Obligation Bonds, 1994, dated November 15, 1994, including the Bonds maturing on December 1, 2001 through 2007 (the "Refunded Bonds") outstanding in the principal amount of $4,165,000. Pursuant to the Ordinance, the City will irrevocably call for early redemption on December 1, 2002, all of the remaining outstanding Refunded Bonds at a price of 102% of principal amount plus accrued interest. The advance refunding is being undertaken to restructure the City's debt service requirements. Gold Mountain Golf Complex The Refunded Bonds were issued to fund the development of the Olympic Course of the City's Gold Mountain Golf Complex (the "Complex"). Located eight miles from downtown Bremerton on a portion of the City's 8,000-acre watershed, the City's Gold Mountain Golf Complex (the "Complex") is operated as an enterprise fund of the City. The original course, built in 1972 and now named the Cascade Course, has been rated as one of the top public courses in the State of Washington by Pacific Northwest Golf magazine (1994 issue). The new course, named the Olympic Course, was designed by architect John Harbottle and opened for play in the fall of 1996. The Olympic Course has received very. positive reviews from both re~ional and national golf industry publications, including being named one of the top ten new public cou{ses in the nation by Golf Magazine in February 1997 and as the second best nex~ public course in the nation by Golf Digest in December of 1997. The Complex is operated by the City as an enterprise with the obiective of makinu a profit and simultaneously meeting as many of the ~olfing community's needs as possible. The profit {-nad(is used to fund other park and recreation facilities and services xvithin the City. Since 1984, the City has contracted the management and operation of the existing course to a private contractor. It is the City's expectation that revenues from the operation of the golf complex will be used to pa>' the debt service requirements of the Bonds. FAILURE TO PAY THE BONDS AT MATURITY If any Bond is not paid upon proper presentment at its maturity, the City is obligated to pa3, interest on that Bond at the same rate provided in the Bond from and after such maturity date until such Bond, both principal and interest, is paid in full. DEBT PAYMENT RECORD The City has always promptly met principal and interest payments on outstanding obligations when due. Additionally, no refunding Bonds have been issued for the purpose of preventing an impending default. THE ADVANCE REFUNDING PLAN The City has covenanted to irrevocably set aside sufficient government obligations as such obligations are defined in chapter 39.53 RCW, as now are hereafter amended ("Government Obligations") required to 5 (,,o effect the refunding of the Refunded Bonds, plus any necessary initial cash, which Government Obligations shall be purchased from the proceeds of the Bonds to redeem the Refunded Bonds in accordance with the provisions of the Ordinance. Pursuant to the Ordinance, the City has irrevocably covenanted to call for redemption on December 1, 2002, the Refunded Bonds maturing on and after December 1, 2003, at a price of 102% of the principal amount plus accrued interest in accordance with the provisions of the Ordinance. Said defeasance and call for early redemption relative to the Refunded Bonds shall be irrevocable after the final purchase and delivery of the Government Obligations to the Escrow Trustee as provided in the Ordinance. Acquisition of the Government Obligations Pursuant to the Ordinance, a portion of the proceeds of the Bonds (exclusive of accrued interest thereon, if any, which shall be paid into the City's Bond Fund), will be delivered to the Escrow Trustee on the day of closing the Bonds, which amount will be used for the sole purpose of purchasing the Government Obligations and paying the cost of issuing the Bonds pursuant to the Escrow Agreement between the City and the Escrow Trustee. The City shall defease the Refunded Bonds and discharge such obligations by the Escrow Trustee's irrevocable purchase of certain Government Obligations, bearing such interest and maturing as to principal and interest in such amounts and at such times which, together with any necessary beginning cash balance, will provide for the payment of: a. The interest which will become due and payable on the Refunded Bonds up to and including December 1, 2002 when due; and b. The redemption on December i, 2002 of the remaining outstanding Refunded Bonds at a price of 102% of the principal amount plus accrued interest. Such Government Obligations shall be purchased at a yield not zreater than the vield permitted by the Internal Revenue Code of 1986, as amended (the "Code"), and at~plicable regulations thereunder relating to acquired obligations in connection with refunding bond issues. Verification of Mathematical Calculations The mathematical accuracy of a) the mathematical computations of the adequacy of the maturinz principal amounts of and interest on the Government Obligations to be held by the Escrow Trustee to pa~ all principal and interest on the Refunded Bonds as described above and b) the mathematical computations supporting the conclusion of Bond Counsel that the Bonds are not "arbitrage bonds" under Section 148 of the Internal Revenue Code of 1986 will be verified by Deloitte & Touche LLP, independent certified public accountants. THE ESCROW TRUSTEE U.S. Bank Trust N.A. is serving as the escrow trustee (the "Escrow Trustee") for the purpose of managing the cash and investments which comprise the escrow for the Refunded Bonds, which will pay the principal of, interest on and redemption premium, if any, on the Refunded Bonds as the same become due and payable. SOURCES AND USES OF FUNDS The following table sets forth the estimated sources and uses of the proceeds of the Bonds, in accordance with the Advance Refunding Plan. Estimated Sources of Funds · Par Amount of the Bonds $ 6 Less: Original Issue Discount · Plus: Accrued Interest Total Sources of Funds Estimated Use of Funds · Purchase Price of Escrow Securities · Initial Escrow Cash · Costs of Issuance and Contingency Total Uses of Funds FUTURE FINANCING The only additional long-term debt contemplated by the City to be issued in the next 12 months is an approximately $1 million issue to finance the remodel of a building which is expected to be donated to the City by the federal government for use as a criminal justice facility. 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 olCfice. The Assessor's determinations are subject to revision by the County Board of Equalization and, for certain property, subject to further revision bv 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 ~vhich 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 7 decided whether the Homestead Exemption may give the occupying home owner a right in the forced sale of the family residence for delinquent general properly 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 Bonds"). The statutory limits on the levy of such taxes are described in the section herein entitled "LIMITS ON AMOUNT OF GENERAL OBLIGATION INDEBTEDNESS." Unlimited tax general obligation indebtedness is payable from taxes without limitation as to rate or amount, imposed upon all taxable property in the City. Unlimited tax indebtedness may be incurred only after approval by 60% of the City voters at an election in which the total vote cast exceeds 40% of th~ votes cast at the last preceding general election of the City or Stare. 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 mav 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.~% of the value of such taxable property. The City is additionally authorized to incur general obligation indebtedness for the followin~ "special" purposes, with voter approval, in the total principal amount of up to the following percent~'~es of the actual value of taxable property within the City: water, artificial light and sewers: 2.5%; open'pace and park facilities: 2.5%. The combination of unlimited tax and limited tax general obligation debt for all purposes cannot exceed 7.5% of the City's assessed valuation. The State statutory limits on City general obligation indebtedness described in this section are more restrictive than those contained in the State Constitution. Both the Constitutional and statutory debt limits may be exceeded if necessary to meet obligations made mandatory by State law or, if necessary, to maintain the corporate existence of the City. In computing total general obligation indebtedness, the following "assets" may be deducted against the principal amount of indebtedness outstanding: (a) money and investments on deposit in general obligation bond retirement funds: (b) taxes (both current and delinquent) levied for the payment of general obligation indebtedness; and (c) delinquent (but not current) taxes due the general fund. 8 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 POVqER$ AND LIMITATIONS".) AUTHORIZATION OF SHORT-TERM DEBT As a result of 1982 legislation, any Washington municipal corporation may borrow money and issue short-term obligations, the proceeds of which may be used for any lawful purpose. Short-term obligations may be issued in anticipation of the receipt of revenues, taxes, or grants or the sale of (1) general obligation bonds if the bonds may be issued without the consent of the voters or if previously ratified by the voters; (2) revenue bonds if the bonds have been authorized by ordinance or resolution; or (3) local improvement district bonds if the bonds have been authorized by ordinance or resolution. These short- term obligations shall be repaid out of money derived from the source or sources in anticipation of which they were issued or from any money legally available for this purpose. Additionally, the City may incur short-term indebtedness in the following ways: first, in an emergency, the Council members may put a plan into effect and authorize indebtedness outside the current budget. All expenditures for emergency purpose shall be paid by warrants from any available money in the fund properly chargeable with such expenditures. If there is insufficient money on hand in the fund, the warrants become registered interest-bearing warrants. In adopting the budget for any fiscal year, the Council members shall appropriate funds to retire any outstanding registered warrants issued since the adoption of the last preceding budget. Second, the City may, without a vote of the electors, purchase property on a conditional sales contract if the total contract amount, together with the other non-voted general obligation indebtedness of the City, does not exceed 3/4 of 1% of the value of taxable property in the City; any item so purchased must be budgeted for payment in accordance with the terms of the contract. TAXING POWERS AND LIMITATIONS Pursuant to chapter 84.52.043 RCW, cities may levy, without a vote of the residents residing therein, a maximum of $3.375 per thousand for general city purposes (the "regular leD"'). Cities with full-time firemen, such as the City', may levy an additional $.225 per thousand to fund the city's Fireman's Pension Fund (chapter 41.16.060 RCW), thus creating a maximum annual lexw' rate of $3.(30 per thousand. The City is currently levying $3.325 per thousand dollars of taxable assesse~t 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 libraD' district in the incorporated area. notwithstanding any other provision of law A city's regular property taxes are subject to the provisions ora state statute limiting the grow-th of annual property taxes (RCW 84.55.010). The limitation, which was amended bv the Property Tax Act (enacted as Senate Bill 5835 by the Washington Legislature in 1997 and adopted and ratified at the November 1997 general election) provides that the regular property taxes payable in the following year shall not exceed the amount of the single highest regular levy amount lawfully levied by the municipal entity in the three immediately preceding calendar years multiplied by a limit factor, plus an additional amount due to the incremental assessed valuation increase in the municipal entity caused by new construction and property improvements. The limit factor is defined in the Property Tax Act as (i) the lesser of 106% or 100% plus inflation, or (ii) any amount up to 106% if approved by a majority plus one vote of the governing body of the municipality upon a finding of substantial need. The regular property taxes levied by a city may be increased above the limit factor upon the affirmative vote of a majority of the voters residing in the municipal entity at an election held for such purposes (RCW 84.55.050). Initiative No. 695 Proponents of Initiative No. 695 ("1-695") have filed with the Washington State Secretary of State petitions containing approximately 514,000 signatures to place the measure on the November 2, 1999 9 general election ballot. The measure has been certified by the Secretary of State to be placed on the ballot. 1-695 would require voter approval for any new or increased taxes or fees proposed by the state, county or local governments. "Tax" is defined in 1-695 to include, but not be limited to, (i) sales and use taxes, (ii) property taxes, (iii) business and occupation taxes, (iv) excise taxes, (v) fuel taxes, (vi) impact fees, (vii) license fees, (viii) permit fees, and (ix) any monetary charge by government, but specifically excludes higher education tuition and civil and criminal fines and other charges collected in cases of restitution or violation of law or contract. The term "tax increase" includes, but is not limited to, a new tax, a monetary increase in an existing tax, a tax rate increase, an expansion in the legal definition of a tax base, and an extension of an expiring tax, such as a serial tax levy. If adopted, 1-695 would appear to require voter approval of any increase in property taxes by the City. The potential impact, if 1-695 becomes effective, on state, county and local governments' ability to pay debt service on non-voter approved debt, such as limited general obligation bonds and revenue bonds, is not known at this time. Unlimited general obligation bonds must currently receive voter approval, and payment of debt service on such bonds would not be impaired by passage ofi-695. It cannot be predicted whether 1-695 will be approved by voters. If approved, 1-695 may be subject to legal challenge and interpretation by the courts. 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 fil~d 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 ~vithin the same county as the entity making the investment; and any investment authorized by law for the treasurer of the State or any local government exclusive of certificates of deposit of banks or bank branches not located in the State. Under chapter 43.84 RCW, the State Treasurer may invest in non-negotiable certificates of deposit in designated qualified public depositories; in obligations oF the U.S. government, its agencies and wholly owned corporations; in bankers' acceptances; in commercial paper; in repurchase agreements; in the obligations of the federal home loan bank, federal national mortgage association and other government corporations subject to statutory provisions. Utility revenue bonds and warrants of any city and bonds or warrants of a local improvement district are also eligible investments (RCW 35.39.030). Any municipal corporation, including the City, may authorize the investment of funds not required for immediate expenditure by the County Treasurer. Such funds of the City, including debt service funds, may be invested by the County Treasurer. The County Treasurer may, upon the request of one or more units of local government that invest their money with the County, combine that money for the purposes of investment (RCW 36.29.022). The office of the County Treasurer receives up to five percent of the earnings on such investments, subject to a maximum of $50 on each transaction, as its investment service fee. The County Treasurer may reimburse its office for any expenses incurred in the establishment and maintenance of such a County investment pool (RCW 36.29.024). Local Government Investment Pool 10 The State Treasurer's Office administers the Washington State Local Government Investment Pool (the "LGIP"), a $3.5 billion fund that invests money on behalf of more than 350 cities, counties and special taxing districts. In its management of LGIP, the State Treasury adheres, at all times, to the principles appropriate for the prudent investment of public funds. These are, in priority order, (i) the safety of principal; (ii) the assurance of sufficient liquidity to meet cash flow demands; and (iii) to attain the highest possible yield within the constraints of the first two goals. Historically, the LGIP has had sufficient liquidity to meet all cash flow demands. The LG~, authorized by chapter 43.250 RCW, is a voluntary pool that provides its participants the opportunity to benefit from the economies of scale inherent in pooling. It is also intended to offer participants increased safety of principal and the ability to achieve a higher investment yield than would otherwise be available to them. The LGIP is a conservatively managed, highly liquid money market fund. The pool is restricted to investments with maturities of one year or less, and the average investment life typically is less than 90 days. Permissible investments include U.S. government and agency securities, bankers' acceptances, high quality commercial paper, repurchase and reverse repurchase agreements, and certificates of deposit issued by qualified Washington State depositories. Authorized Investments for Bond Proceeds In addition to the eligible investments discussed above, bond proceeds only may also be invested in mutual funds with portfolios consisting of U.S. government and guaranteed agency securities with average maturities of less than four years; municipal securities rated in one of the four highest categories; and money market funds consisting of the same, so long as municipal securities held in the fund(s) are in one of the two highest rating categories. Bond proceeds may also be invested in shares of money market funds with portfolios of securities other~vise authorized by law for investment by local governments (RCW 39.59.030). The City's Investments The investments of the City, except those of the Community Development Block Grant Fund. are managed in a pooled format. Interest earnings are distributed monthly to the individual funds based on their respective balances at the beginning of the month. These pooled investments are classified on the balance sheet as cash and equivalents. As required by state statue, all investments and deposits of the City's funds are obligations of the U.S. Government, U.S. agency issues, deposits with the State Treasurer's LGIP, prime bankers' acceptances, deposits with Washington State banks and savings and loan institutions or repurchase agreements with authorized securities as collateral. 11 NET DIRECT DEBT AND ESTIMATED NET OVERLAPPING GENERAL OBLIGATION DEBT' (As of May 31, 1999) Direct Debt: Voted General Obligation Bonds Outstanding ...................... Non-Voted Bonds Outstanding ............................................ The Bonds ............................................................................ Non-Voted General Obligation Tax Anticipation Notes Bank Line of Credit Outstanding .......................................... Less: Debt Service Fund Balance .......................................... Net Direct Debt .............................................................. 1,175,000 3,958,1492 4,500,0003 1,250,000 1,706 (226,133) Estimated Net Overlapping Debt: Kitsap County Port of Bremerton Bremerton Sch. Dist. No. 100-C Central Kitsap Sch. Dist. No. 401 South Kitsap Sch. Dist. No. 402 Net G.O. Debt Percent of Amount of Outstanding Overlap Overlap $ 49,994,024 11.05% $ 5,524,340 1,515,000 25.95 393,143 25,820,000 73.98 19,101,636 84,010,000 1.09 915,709 8.323,000 0.13 10.820 Estimated Net Overlapping Debt: ......................................... Net DirectPlus Estimated Net Overlapping Debt: .................................. $ 10,658,722 25.945,648 36,604,370 BONDED DEBT RATIOS OF THE CITY Assessed Valuation for Collection Year 1999 Estimated City Population (1999)-' ............................................................ Assessed Valuation Per Capita .................................................................. Net Direct Debt ro Assessed Valuation ....................................................... Net Direct and Estimated Overlapping Debt ro Assessed Valuation ........ Net Direct Debt Per Capita .................................................................. Net Direct and Estimated Overlapping Debt Per Capita ........................... [,343,271,067 36,270 37,035 0.79% z.73% 294 1,009 I Reflects the issuance of the Bonds. Excludes the Refunded Bonds; figure is preliminaU' and subject to change. Preliminary, subject to change. Assessed valuation for tax collection year 1999 is stated as the full assessed value of all taxable real and personal property in the City. 5 Source: Washington State OI~fice of Financial Management (JuDy 1999). 12 STATUTORY DEBT LIMIT CALCULATION' (As of May 31,1999) 1998 Assessed Valuation for Collection Year 1999 ........................................... I. General Purposes a. Non-Voted Indebtedness Limit (1.5% of Assessed Valuation) ............. Less: Non-Voted Bonds Outstanding .............................................. Less: The Bonds ............................................................................. Less: Non-Voted Notes Outstanding .............................................. Less: Bank Line of Credit Outstanding ............................................ Plus: Cash and Investments in Debt Service Funds .......................... Remaining Capacity for General Purposes (Non-voted) ............. b. Voted Indebtedness Limit (2.5% of Assessed Valuation) ..................... Less: Voted Bonds Outstanding ...................................................... Less: Non-Voted Notes Outstanding ............................................... Less: Non-Voted Bonds Outstanding (including the Bonds) ............ Less: Bank Line of Credit Outstanding ............................................ Plus: Cash and Investments in Debt Service Funds .......................... Remaining Capacity for General Purposes (Voted) ................... II. Utility Purposes (2.5% of Assessed Valuation) Limit ............................................................................................ Less: Bonds Outstanding ............................................................. Remaining Capacity for Utility Purposes ................................ III. Parks and Open Space Purposes (2.5% of Assessed Valuation) Limit ................................................................................................ Less: Bonds Outstanding ................................................................ Remaining Capacity for Parks and Open Space Purposes $ 1,343,271,067 $ 20,149,066 (3,958,149): (4,500,000)' (1,:so,0oo) (1,706) 0 10,439,211 33,581,777 (],175,ooo) ( ,2so,ooo) (8,458,149): (1,706) S 22,923.055 5 33,581.777 0 $ 33 581 ~'' $ 33,581,777 0 $ 33,581,777 Reflects the issuance of the Bonds. Excludes the Refunded Bonds; figure is preliminaO' and subject to change. PreliminarT, subject to change. 13 Collection Year 1999 1998 1997 1996 1995 1994 BOND: AD VALOREM TAX RECORD OF THE CITY1 Taxable Assessed Tax Collected Year of Levy . Collected as of May 31, 1999 I 3 Valuation Levy Amount Percent Amount Percent $ 1,343,271,067 $ 5,425,058 NA~ NA~ NA~ NA4 1,345,904,065 5,450,559 $ 5,219,428 95.71% $ 5,316,955 97.55% 1,299,548,001 4,953,030 4,702,202 94.94 4,890,636 98.74 1,223,940,521 4,669.894 4,467,109 95.66 4,650,966 99.60 1,203,299,197 4,464,606 1,236,931 94.89 4.460,428 99.91 1,169,824,600 4,128,583 3,957,637 95.86 4,125,679 99.93 Taxes are due and payable on April 30, of each year. At least one half of the tax amount due must be paid on or before April 30, or else the total amount becomes delinquent on May 1. The second half of the tax due is payable on or before October 31. becoming delinquent November 1. AD VALOREM PROPERTY TAX RATES IN THE CITY~ (Rates In Dollars per $1,000 of Assessed Valuation) city School Dist. Emerg. Collection General City State Kitsap Port of No. 100C Medical Regional Year Fund Bonds School County Bremerton PUD Services Library Total 1999 $ 3.3250 $ 0.2126 $ 3.3178 $ 1.8125 $ 0.4814 $ 5.1422 $ 0.1017 $ 0.5000 $0.5000 $ 15.3932 1998 3.3250 0.2218 3.5911 1.3908 0.4624 5.0292 0.1017 0.5000 0.5000 15.1220 1997 3.3469 0.2153 3.6467 1.6641 0.4338 5.1331 0.0998 0.250/) 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. 1387 0.0940 0.25O0 0.4595 11.6036 1994 3.0635 0.2393 3,4297 I. 1731 0.3897 5.0440 0.0865 0.2490 0.4447 14 1210 Taxpayer MAJOR PROPERTY CITY OF BREMERTON Puget Sound Energy US West Communications hlc. HMI Inc. Michael Connolly Kitsap Physicians Sen, ices Viewcrest Villages LTD Pannership Merit Company Fir Lane Terrace Convention Center East Towne Center Haselwood Charles & Joanne Cascade Natural Gas Corporation Bremerton Cascade Association TAXPAYERS-~ Business Assessed Valuation for 1999 Collection Year Utility $ 30.817,215 Utility 16.738.831 Retail. Automotive 10.180.680 Retail. Services 8. lO4.000 Medical 8.01/6.935 Rentals 7.393.000 Community Center 6.729.000 Convalescent Center 6.51)4.000 Communi~' Center 6.231.000 Retail. Land 5,888,830 Uti[i~' 5,795,721 Retirement Apamnents 5.775,000 Source: Kitsap County Treasurer Assessed valuation is stated as the assessed valuation of all taxable real and personal property in the City. Includes all City levies. Not available. Source: Kitsap County Assessor's Office. 14 Revenues: Taxes Licenses & Permits Intergovernmental Charges for Services Fines & Forfeits Miscellaneous COMPARATIVE STATEMENT OF GENERAL FUND REVENUES AND EXPENDITURES' (Fiscal Year Ending December 31) 1998 1997 1996 $ 16,201,397 $ 15,678,923 $ 15,498,917 $ 314,340 348,796 312,203 1,027.234 812.436 742,432 1.596.652 1,762,945 1.864,848 446.715 512.828 433,775 383.402 290.343 342.700 Total Revenues $ 19,969,740 $ 19.406,271 Expenditures: General Government Security of Persons & Prop. Physical Environment Transportation Economic Environment Mental & Physical Health Culture & Recreation Redemption of Gen. L.T. Debt Debt Service Capitol Outlay $ 4.075,157 $ 4.199,525 $ 5.313,516 11.685,742 10,893,020 9,313,570 555.693 613,338 942.764 986,816 923.064 959,327 862,864 507.996 276.689 24.632 24,632 30.818 1.780.180 1.768.867 1.867.204 4.194 2.688 0 57.478 74.055 85.540 208.697 298,438 404.888 Total Expenditures $ 20.241.453 $ 19.305.623 $ 19.194.316 $ Other Financing Sources (Uses) Operating Transfers In Operating Transfers Out General Fixed Assets Disp. Proceeds of Gen. L.T. Debt $ 251.251 $ 113,144 $ 196.725 (397.428) (406.836) (357.180) 15.316 [5.568 36.671 {~ 16.629 237.700 Total Other Financing Sources (Uses) $ (130.861) $ (261.495) S 113.916 Fund Balance. JanuaD' [ Prior Year's Corrections Residual Equi'o.~ Transfers Other Equity Changes $ 701.726 $ 861.135 $ 709.671 0 0 0 0 0 6.435 !5.332 1.438 30.554 TOTAL ENDING FUND BALANCE 314,484 $ 701,720 $ 861,135 $ ENDING FUND BALANCE CONTINGENCY RESERVE FUND YEAR-END BALANCES1,: 1998 1997 1996 $ 709,162 $ 706,947 $ 673,110 1995 1994 14,501.567 $ 14,137,828 298,989 390,454 847,272 728,407 1.783,646 1,394,815 483,964 593,093 248,743 240.672 18.164,181 $ 17,485,269 5,009,311 $ 4.843,656 8,614,262 8,219,945 848,346 587,93l 850,639 840,530 454,250 514,320 264,239 250,493 1.566,669 1.426.763 0 24.672 59.860 44.593 486.005 385.414 18.153.58! $ 17.138.317 6.000 S 6.00U (307.8365 (398.376) 2.886 59.64() () o (298.950~ S (323.736) 1.064.368 $ (44.548) (65.128) 9.717 (1.219) 1.084.983 __~709,67! S 1,064,368 1995 1994 709,040 $ 704,922 Source: City of Bremerton Annual Financial Reports. All years except 1998 have been audited by the Washington State Auditor's Office. Money in this fund in excess of $650,000 is transferred to the General Fund to finance capital purchases. 15 GENERAL FUND BUDGET FOR 19991 (Fiscal Year Ending December 31) REVENUES Beginning Fund Balance Taxes Licenses and Permits Intergovernmental Revenue Charges for Services Fines and Forfeitures Miscellaneous and Other Total Revenue 1999 785,000 16,569,500 343,480 1.057,811 1,739,205 536.60O 1.807.345 23,838,941_ EXPENDITURES General Government City. Council Executive Administrative Services Police & Fire Pension Intergovernmental Sen'ice Misc. Non-Departmental Legal Department Human Resources Community Development City Auditor 166,397 160,297 2,088,385 1,513,337 134,447 1,347.387 501.756 205.352 709.457 85,426 Public Safety Police Department Fire Department 6.269.O49 4.218.965 Public Works General Facilities Engineering Transportation 418.171 351.178 1.165.008 Leisure Services General Parks Recreation Senior Center Pool Cemetery Sen'ices Athletics Tax Anticipation Note and Ending Cash Total Current Expenditures 1.054.511 221,492 171,668 293,328 72,025 191.105 2,500.000 23,838,941 Source: City of Bremerton. 16 SCHEDULE OF GENERAL OBLIGATION BOND DEBT SERVICE FOR THE CITY (Years Ending December 31) Non-Voted General Obligation Bonds~ Outstanding Voted General Obligation Bonds Outstanding The Bonds Year Principal Interest Principal Interest Principal Interest Total All G.O. Bonds 1999 $ 220,000 $ 58.561 $ 452.391 $ 364,055 $ 55,000 $ $ 2000 170,000 48.353 450,758 207,715 45.000 2001 185,000 40,805 185.000 181,750 165.000 2002 190,000 32,647 195,000 171,658 170.000 2003 205,000 23,906 205.000 160,837 175.000 2004 135,000 16,308 220,000 149,288 185,000 2005 140,000 10,085 230,000 136,767 190,000 2006 150,000 3,450 245,000 123,078 200.000 2007 0 0 255,000 108,092 210.000 2008 0 0 275,000 92.475 220.000 2009 0 0 290.000 75.370 230.000 2010 0 0 315.000 57.195 240.000 2011 0 0 335.000 37.018 255.t)00 2012 0 0 275.000 15.537 265.U00 2013 0 0 0 0 28t1.000 2014 0 0 0 0 29O.0O0 2015 0 0 ~) 0 2016 0 0 0 0 2017 0 (/ 0 0 34(),~ 2018 0 0 ~ ~3 355.~uu Total $ 1.395.000 $ 234.115 $ 3.958.149 $ 1.880.835 $ 4.50().[~()0 $ $ 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 1 Excludes the Refunded Bonds. 2 Preliminary, subject to change. 17 operates water, sewer and storrnwater 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 in 1998, Before her election as mayor, she served for six years on the Bremerton City Council. She is the past Chair and current Board Member of the Kitsap Regional Planning Council, and a board member of Kitsap Transit, Kitsap County Cen-Com and the Bremerton-Kitsap County Health Department. Ms. Horton is a graduate of the University of Washington and has been a resident of the City since 1974. Richard Hanna, City Treasurer: Mr. Hanna has been the Treasurer of the City of Bremerton since 1986. Before joining the City, he was Treasurer of the City of Centralia, Washington. Mr. Hanna received his Bachelor's Degree in Accounting from Western 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, Washin~on Municipal Treasurers Association and Puget Sound Finance Officers Association. Labor Relations The City has entered into written agreements with each of the bargaining groups set forth below. These agreements contain provisions on such matters as vacations, sick leave, medical and dental insurance, salaries, working conditions and grievance procedures. Employees of the City represented by bargaining units are as follows: Union Membership Contract Period Teamsters Local 589 130 3 yr. Patrolman's Association 53 3 yr. Police Management Association 5 3 yr. International Association of Fire Fighters Local 437 44 3 vt. Expiration Date 12/31/00 12/31/99 12/31/99 12/31/01 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. Year 2000 Readiness Disclosure The City has evaluated all of 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, but does not believe that there will be anv material adverse impact'on the City or its operation. However, it is not possible to forecast or anticipate ali potential problems at this time that could arise from internal systems or interfaces with other service providers. It is not possible to quantif)' potential losses due to disruption of service nor the amount of any potential recove~ or liability by the City. Computer Hardware and Soft, rare The City has completed an assessment to determine the areas where work needs to be done and has informed the relevant staff of their responsibilities. The City appears to be in a good state of Y2K readiness in terms of its own equipment and software. Desk Top Computing No major problems are anticipated in this area. Most of the City's PCs are already Y2K compliant. As part of the City's efforts for preparedness, all non-mission-critical PCs will be turned offprior to midnight of 12/31/99 and turned back on after the holiday. The City has standardized with Microsoft's desktop software. For the most part, the latest release of this software is Y2K compliant. Microsoft has acknowledged certain "minor issues" in some of their software. The citywide network/e-mail/scheduling hardware and software is Y2K compliant. Central Computing The City has been informed by the supplier of most of its central computing software that their products are Y2K compliant. The current central computer platform requires an 18 upgraded operating system and an upgraded version of the application development language in order to become compliant. Both of these upgrades are on hand and will be installed in the near future. The central computer is scheduled for replacement very shortly. The City will carry out necessary testing of hardware and upgraded software on the replacement equipment prior to its being put into service. The City has two sot'tware packages that are not Y2K compliant. Both of these packages will be replaced before year-end. All other s0flware packages are Y2K compliant according to their respective manufacturers. Other Equipment and Software Hardware and sot'rware controlling the City's water and wastewater facilities is Y2K compliant. The so,ware that sets the day of the week sequencing for the City's traffic signals will misreport the day of the week as of 2/29/2000. If let5 in that state, the signals would continue to operate after the above date but any preset sequencing would be off by one day. City staffare working to resolve this issue. Interaction with Federal and State Agencies The City has no reliable information as to how its interaction with Federal and State agencies will be affected by Y2K. As much end-of-year processing (W2s, 1099s etc.) as is practical will be done before the end of the year, so as to reduce potential problems in January. Banks and Financial Institutions It is widely reported that banks and financial institutions are well prepared to handle Y2K from a computer processing perspective. Rigid controls, compliancy testing and an achievement schedule demanded by the Federal Reserve have created a high degree of readiness in the banking industry. Electricity, Natural Gas and Communications Disruption in anv of these services would cause significant problems for the City. The most significant problems would be caused by the toss or severe disruption of electrical power for an extended period of time. In the event of such a disruption, the following conditions are expected: Water Supply At year-end, the City's Water Utility will have sufficient water stored to supply all customers for several days of normal usage without anv intervention by staff. Prolonged disruption would require the use of backup power at pump stations. The major pump stations have backup power already available. Smaller stations will require periodic use of portable backup power which is also available. · Wastewater The Citv's wastewater treatment plant could operate normally' through a short power outage. Prolonged dlsmption would prevent the secondary treatment of wastewater. The plant would be able to perform primary treatment and this would satist~' State requirements if conditions bevond City control existed. · Streets City traffic signals will not operate during power disruptions. Limited portable power is available to operate signals at major junctions. Other~vise. temporary 4-way stop rules at intersections will apply. · Facilities In the event of a long term power disruption, the City would not be able to operate all of its current facilities. Plans are being made to consolidate CSitv services into buildings where a reasonable working environment could be maintained. This will include the temporary transfer of central computing services, if necessary. It is anticipated that the City would be able to continue all of its major services to the public under such circumstances. Year 2000 Readiness Disclosure - Kitsap County Kitsap County assesses property, establishes levies and collects and distributes taxes on behalf of all taxing districts in the County, including the City. In 1996, 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 maior 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 the summer of 1999. 19 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 1999 population of 36,270 Kitsap County, covering 393 square miles of land, also includes the following other incorporated areas: Bainbridge Island (1999 population 19,840), Port Orchard (1999 population 7,255) and Poulsbo (1999 population 6,455). Military Presence The economy of the City is closely tied to the United States Navy. The Puget Sound Naval Shipyard in Bremerton ("PSNS") is the largest Naval shipyard on the Pacific Coast and is the only West Coast shipyard capable of working on nuclear ships. With 8,194 civilian employees, 8,900 military personnel, and approximately 12,000 military family members, the shipyard is also the only facility capable of decommissioning and recycling nuclear submarines which are being disassembled in accordance with Strategic Arms Limitations Treaties. PSNS is the largest naval employer in the State. The shipyard itself encompasses 344 acres of land, 382 buildings and nine permanent piers totaling 12,310 feet of deep water space. The economic impact of PSNS locally is approximately $700 million per year. The Fleet Industrial Supply Center is another local military facility in the City, with about 200 employees. Located a few miles north of the City of Bremerton is the Naval Submarine Base at Bangor. Bangor serves as a home base for Trident Missile submarines, the USS Parche fast attack submarine and various support commands. The base provides employment to 3,800 civilians, and 5,200 military personnel. Another 10,000 military family members are connected to the base. Bangor is the only base of its kind on the Pacific Coast. Annual local economic impact of Bangor is $230 million. The largest subcontractor providing setwices to the U.S. Department of Defense in Kitsap County is Johnson Controls World Service, with 800 employees. GEC Marconi (formerly Tracor) is the second largest, with 350 employees. Another military, installation located near the City is the Naval Undersea Warfare Engineering Station at Keyport. The station tests and maintains torpedoes, provides maintenance support for fire control equipment and mines, and provides other engineering-related selwices for undersea warfare. The Undersea Warfare Station employs approximately 1,390 civilian and 30 military personnel. U.S. Navy Projects in Kitsap County Recent historical and projected spending for Navy, construction and related facilities support work in Kitsap County provided by the U.S. Naxs' Engineering Field Activitx' Northwest office as follows: Kitsap County Fiscal Year Amount (millions) 1993 $ 2110.7 1996 192.3 1997 142.3 1998 127.8 1999 115.8 2000 109.3 The $250.5 billion defense spending bill approved by Congress in September of 1998, includes the following projects for Kitsap County military facilities: 20 Project Innovative wastewater treatment research program Development of an environmentally safe and inexpensive way to eradicate asbestos Additional ship repair and maintenance projects* Strengthe. lling of apprenticeship program Impact aid to education provided to Washington State (to offset loss of local tax base because of military, installations) Expansion of Naval Hospital Bremerton Securi .ty Force Building at Strategic Weapons Facili .ty Pacific Facili .ty for housing the Navy's Disease Vector. Ecology and Control Center Community, Support Facili .ty at Jackson Park Naval Housing Amount Location (millions) PSNS $ '7.0 PSNS 4.O PSNS and others 30.0 PSNS 3.5 Kitsap Co. I. 9 Bremerton 28.0 Bangor 2.8 Bangor 5.7 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 A/rport and the 560-acre Olympic View Industrial Park, both located approximately 10 miles southwest of the City. The park includes 34 firms which employ a total of approximately 350 people. The Port's facilities are designated as a foreign trade zone which offers duty savings to its tenants. Bremerton National Airport is the largest airport in the County, xvith a 6,200-foot runway and full instrumentation and lighting systems. The airport can handle all general aviation aircraft and most transport and military planes. Charter passenger and air freight services are available to SeaTac Airport, the major international airport in the Puget Sound area. The Bremerton Airport has recently undergone improvements. Health care needs are met by several facilities in the Bremerton area including the Naval Hospital - Bremerton with 360 civilian and 700 military serving approximately 2.500 military family members. Over the past few years, the Naval Hospital was renovated and expanded. Harrison Memorial Hospital in Bremerton has 1,164 employees. A $24 million expansion project is scheduled for completion at the Hospital in 2003. A number of nursing homes and retirement complexes are also located in Bremenon. Olympic College is a two-year public community college located in Bremerton, with an enrollment of approximately 4,310 (full-time equivalents). The college has 250 full-time permanent employees, but can employ up to 600 empioyees, including part-time student workers. The college offers associate of arts degrees in four fields, as well as adult education and non-credit courses, and began a four-vear degree program (called "2-Plus-2") in 1994. The 2-Plus-2 degree program is associated with the LTniversity of Washin~on, Tacoma branch. A new library, is being constructed at the college. Housing Kitsap County home sales in 1998 totaled 3,276. excluding condominiums, up from 2,660 in 1997. Home listings averaged a listing time before sale of 92 days compared with 139 davs in 1997. A total of' 1,43 1 residential buildin~ permits were applied for in 1998 compared with 1,541 in 1997. Residences in · ~ th the County are relatlvely affordable as the 4 quarter 1998 median home price was $140,000, compared to the statewide average of $161,800. New Developments Among the projects recently completed or proposed for development in Bremerton are the following: · A multi-modal transportation facility is now under construction on the City's downtown waterfront. The project includes two fast foot ferries that will serve Bremerton (one is already in service), the Bremerton Transportation Center, and highway improvements to Bremerton The cost of the publicly funded projects is estimated at $21 million. The new Bremerton Transportation Center, 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 21 service is also on the way: high-speed 30-minute passenger ferries between Bremerton and Seattle began service in 1998 and a 30% increase in car capacity is anticipated by 2000. · Pope Resources, a timber and land management company based in Poulsbo, and its subsidiary,, Olympic Resource Management, have obtained land within the City that is planned for development as a 61-acre business park and 209 acres for 450 new homes. The project has received permit approval from the City and site work has begun. · The Kitsap County Economic Development Council (EDC) has recently reorganized, reducing the size of its board, appointing four new directors and is refocusin~ its priorities on business (a) recruitment, (b) retention and expansion, (c) startup and education, ~'d) information services, and (e) community development for economic expansion. · A 34-unit congregate care facility was recently completed in the City. · An 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 City has provided permit approval to Today Chevrolet, for the construction of a 30,000 square- foot auto-complex, which includes parking lots. · In 1998, Dimensions4 software company relocated from Seattle to the City. The company produces software that create three-dimensional images of architectural/en~oineerin~ designs. Initially with 10 employees, the firm is expecting to expand.~ ~ ~ · A combination of Port and private business development at the Olympic View Industrial Park includes nine construction projects beginning in 1999. Phase I of the Northeast Campus, xvith eight buildings, a road extension and utilities is now beginning, with total buildout of the 29-acre site to eventually include over 20 building sites. The Port also expects To construct a multi-tenant, small business incubator building, xvhich will house between 12 and 20 expanding or new businesses. · The Port is planning to develop a light industrial area known as the West Puget Tech Park, which will be developed at the Olympic View Industrial Park. The first phase includes a 24,000 square-foot business development center, and the remainder of this project will be developed on a demand basis. · In 1998, 569 building permits were issued in the City for a total value of S19.1 million. This compares with annual totals of 508 permits in 1997 valued at S19.4 million and 511 permits in 1996 valued at $15.8 million. Following are economic indicators of the Citv and the County. KITSAP COUNTY POPULATION: Kitsap City of Other Kitsap County County Year Bremerton Incorporated Unincorporated Total 1999 36.270 33.540 [59.89() 229.700 1998 37.260 32.615 159.125 229.000 1997 38.600 32.060 158.74(~ 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 12.913 138.676 189,731 TAXABLE RETAIL SALES~ Source: Washington State Office of Financial Management and U.S. Census. The large increase is due to the mmexation of the unincorporated areas of Bainbridge Island to the nexv City' of Bainbridge Island. 22 Year 4 1998 1997 1996 1995 1994 Year Kitsap County City of Breme~on 1998 $ 2.064,021,512 $ 506.875.439 1997 1.958,346.681 498.779.418 1996 1,836,198,934 477,467,218 1995 1.768.304,057 451.277.414 1994 1,774,185,000 461,026,409 SEATTLE-BREMERTON FERRY TRAFFIC STATISTICS: Year Number of Vehicles Number of Passengers 1998 714.903 2,211.641 1997 756.796 2.047,014 1996 731,926 1.863,596 1995 751,266 1.820.433 1994 719,125 1.719.413 KITSAP COUNTY AND WASHINGTON STATE LABOR FORCE AND AVERAGE ANNUAL UNEMPLOYMENT-~ Resident Civilian Average Annual Total Labor Force Unemployment Employment Kitsap County (%) 91,300 4,800 86,500 5.3 93,000 5.100 87,900 5.5 93,500 6.300 87,200 6.7 89.600 6.000 83.600 6.7 88.600 5.300 83.300 6.0 Washington (%) 4.8 4.8 6.3 6.4 6.4 KITSAP COUNTY AND WASHINGTON STATE INCOME ESTIMATES~ Kitsap County Per Capita tncome Year Personallncome($000) Kitsap County Washington 1997 $ 5.053.352 $ 21.580 $ 26.451 1996 4.755.715 20.59- 24.958 1995 4.516.914 20.t)06 23.677 Source: Washington State Department of Revenue. Source: Washington State Department or'Transportation, Marine Division. Passengers total includes the passenger-only ferries and vehicle terries. Includes nonagricultural ,,',,age and salad, sell:employed, unpaid family workers, domestics, agricultural workers, labor disputants. 4 1998 figures are all prelimina~. 5 Source: U.S. Bureau of Economic Analysis; presented in 1997 dollars. 23 KITSAP COUNTY MAJOR PRIVATE SECTOR EMPLOYERS~ Employer Harrison Memorial Hospital Johnson Controls World Services2 Safeway Wal-Mart Laurier Enterprises (McDonald's) GEC Marconi (formerly. Tracor)2 To~vn & Country.' Markets Fred Meyer Martha & MaD' Nursing/Child Care Group Health Cooperative The Doctors Clinic Belmont Terrace & Ridgemont Terrace Costco Wholesale No. of Employees 1.164 800 608 3003 430 370 252 240 350 200 300 245 240 KITSAP COUNTY MAJOR PUBLIC AGENCY EMPLOYERS~ Employer Puget Sound Naval Shipyard5 Naval Submarine Base Bangors State agencies ~Dept. of Revenue, Zmplo. vment Securi~', 3~ocia/ & Health Services. Transportatmn. State Patrol) Central Kitsap School District Naval Undersea Warthre Centers South Kitsap School District North Kitsap School District Kitsap Count3.' North Kitsap School District Bremerton School District City of Bremerton Olympic College Bainbridge Island School District No. of Employees 8.194 3.80(/ 1.89i 1.637 1.390 1.100 1.100 1.050 873 750 336 250 243 PRESERVATION OF TAX EXEMPTION The City has covenanted, in the Ordinance, to take all actions necessary to prevent interest on the Bonds from being included in gross income for federal income tax purpose. 3.nd it will neither take any action nor make or permit any use of proceeds of the Bonds or other funds of the City at any time during the term of the Bonds which will cause interest on the Bonds to be included in gross income for federal income tax purposes. The City has certified in the Ordinance that it has not been notified of any listing or 1 Source: Kitsap County Economic Development Council as of May 1999. 2 Private companies handling major contracts with the U.S. Department of Defense 3 Estimated. 4 Source: Kitsap County Economic Development Council as of May 1999. 5 Excludes military personnel. 24 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 Bonds. Furthermore, Bond Counsel from time to time serves as counsel to the Underwriter with respect to issuers other than the City and transactions other than the issuance of the Bonds. None of the council members or other officers of the City has interests in the issuance of the Bonds that are prohibited by applicable law. TAX EXEMPTION In the opinion of Gottlieb, Fisher & Andrews, PLLC, Bond Counsel, as of the date of issue of the Bonds (the "Date of Issue"), and subject to certain assumptions described in the next paragraph: the Bonds are not "private activity bonds," as defined by the Code; the Bonds have been designated by the City as "qualified tax-exempt obligations" for purposes of the partial interest expense deduction for purposes of Section 265 of the Code; interest on the Bonds is excluded from gross income for federal income tax purposes under existing federal law; and such interest is not an item of tax preference for purposes of determining the alternative minimum tax on individuals and corporations under existing federal law. However, under existing federal law interest on the Bonds received by certain corporations is to be taken into account in the computation of adjusted current earnings for purposes of calculating the alternative minimum tax applicable to such corporations; such interest received by certain S corporations may be subject to tax; and such interest received by foreign corporations with United States branches may be subject to a foreign branch profits tax. Bond Counsel expresses no opinion regarding any other federal tax consequences of receipt of interest on the Bonds. Potential purchasers of the Bonds ~hould consult with their tax advisors as to all possible tax consequences of ownership of the Bonds. See also, "OTHEa TAX CONSEQUENCES," herein. The Code contains certain requirements which must be satisfied subsequent to the issuance of the Bonds in order to maintain the tax treatment described above, including requirements relating to the application of the proceeds of the Bonds, use of facilities which are financed with such proceeds, limitations on income derived from the investment of ~ross proceeds of the Bonds. and rebate to the United States Treasury of certain of such investment ~ncome on such gross proceeds. The City has covenanted to comply with these requirements; and the opinion of Bond Counset described in the preceding paragraph assumes such compliance. However, Bond Counsel has not unde~aken and shall not undertake to monitor compliance by the City with such requirements and failure of the City to comply with such requirements could cause the interest on the Bonds to be included in ?oss 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 Under 1. OTHERTAXCONSEQUENCES current federal law: 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 earmn,s 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 25 or a.cquir,,ed, including interest on the Bonds, is included in the computation of "adjusted current earmngs. Tax on Excess Passive Investment Income of S Corporations. Certain excess net passive investment income, including interest on the Bonds, received by an S corporation (a corporation treated as a partnership for most federal tax purposes) that has "subchapter C earnings and profits" at the close of its taxable year may be subject to federal income tax at the highest rate applicable to corporations if more than 25% of the gross receipts of such S corporation for such taxable year is passive investment income. Foreign Corporation Branch Profits Tax. Interest on the Bonds received by certain foreign corporations doing business in the United States may be subject to a branch profits tax applicable to such corporations that is based on their Untied States source earnings and profits, including tax-exempt interest on obligations such as the Bonds. Reduction of Loss Deduction for Property and Casualty, Insurance Companies. Interest on tax-exempt obligations, including the Bonds, received by property and casualty insurance companies, will reduce tax deductions for loss reserves otherwise available to such companies by an amount equal to 15 percent of such tax-exempt interest received during the taxable year. Social Security and Tier 1 Railroad Retirement Benefits Subject to Tax. Interest received or accrued during the year from tax-exempt obligations, such as the Bonds, is included in the calculation of "modified adjusted gross income" of recipients of the social security or tier 1 railroad retirement benefits. If the sum of the "modified adjusted gross income" for the taxable year plus one-half of the social security or tier 1 railroad retirement benefits received during the taxable year exceeds a base amount provided by the Code (the "excess amount"), then the lesser of (i) one-half of the social security or tier 1 railroad retirement benefits received during the taxable year or (ii) one-half of the "excess amount", is included in the gross income of the social security or tier 1 railroad retirement benefit recipient. ABSENCE OF MATERIAL LITIGATION There is no litigation of anv kind now pending or. to the knowledge of the City, threatened to restrain or enjoin the issuance or delivery of the Bonds or in any manner questioning the proceedings and authority under which the Bonds are issued or affecting the abi'lity of the City to pay the principal of or the interest on the Bonds. APPROVAL OF BOND COUNSEL Legal matters incident to the authorization, issuance and sale of Bonds by the City are subject to the approving legal opinion of Gottlieb, Fisher & Andrews, PLLC, Bond Counsel. A copy of the opinion of Bond Counsel will be delivered with the Bonds. CONTINUING DISCLOSURE The City has undertaken, for the benefit of the Owners and Beneficial Owners of the Bonds required by subsection (b)(5)(i) of the Rule 15c2-12 (the "Rule") of the United States Securities and Exchange Commission (the "SEC"), to provide or cause to be provided 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 otherxvise 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"). 26 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 ,N,,,ationallv Recognized Municipal Securities Information RePository designated by the SEC ( NRlVlSIR ) or th~ 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 NRMSI~ notice of any of the following events with respect to the Bonds, if material: 1. Principal and interest payment delinquencies; 2. Non-payment related defaults; 3. Unscheduled draws on debt service reserves reflecting financial difficulties; 4. Unscheduled draws on credit enhancements reflecting financial difficulties; 5. Substitution of credit or liquidity providers, or their failure to perform; 6. Adverse tax opinions or events affecting the tax-exempt status of the Bonds; 7. Modifications to fights of the Owners of the Bonds; 8. Optional redemptions of the Bonds; 9. Defeasances of the Bonds; 10. Release, substitution or sale of property securing repayment of the Bonds; and 11. Rating changes. After the issuance of the Bonds, so long as the interests of the Owners or Beneficial Owners of the Bonds will not be materially impaired thereby, as determined by a party unaffiliated with the City (including, without limitation, a trustee for the O~vners, 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 oblizated person, or type of business conducted, and only in such a manner that the continuin~ disclosure unc~'ertakin~ of the C~tv, as so amended, would' have complied with the requirements of the P~ule at the time of the l~rimary offe~-ine after taking into account any amendments or interpretations of the Rule, as well as any change circumstances. The City's obligations to provide ,Annual Financial Information and notices of certain events shall terminate without amendment upon the defeasance, prior redemption or payment in full of' all of the then outstanding Bonds. This continuina disclosure undertakina or anv provision hereof shall be null and void if the City (i) obtains an opinion or-nationally recognized l~ond c3u'nsel or other counsel familiar with the federal securities laws to the effect that those portions of the Rule which require this continuin~ disclosure undertaking or any such provision are invalid, have been repealed retroactively or otherwise d~ not apply to the Bonds; and (ii) notifies and provides the SID, if an.,,', and either the M~RB or each then existing NRMSIR with copies of such opinion. The right of each Owner or Beneficial Owner of Bonds to enforce the provisions of this continuing disclosure undertaking shall be limited to the right to obtain specific enforcement of the City's obligations in this continuing disclosure undertaking and any failure by the City to comply with the provisions of this continuing disclosure undertaking shall not be a default with respect to the Bonds under the Ordinance. RATING The City has applied to Moody's Investors Service for a rating on the Bonds. The rating, xvhen assigned, reflects only the view of the rating agency and an interpretation of such rating may be obtained only from the rating agency furnishing the same. There is no assurance that such rating will continue for an~ given period of time or that it will not be revised downward or withdrawn entirely by the rating agency, if, in the judgment of such agency, circumstances so warrant. Any such revision or withdrawal of either such rating may have an adverse effect on the market price of the ~3onds. 27 UNDERWRITING The Underwriter has agreed, subject to certain conditions, to purchase all of the Bonds, if any are purchased, at a price of' % of the par value of the Bonds, plus accrued interest from the dated date to the settlement date. The Bonds will be reoffered at an average price of % of the par value of the Bonds, resulting in a underwriting spread of $__ per $1,000. After the initial public offering, the public offering prices may be varied from time to time. CONCLUDING STATEMENT All estimates, assumptions, statistical information and other statements contained herein, while taken from sources considered reliable, are not guaranteed by the City or the Underwriter. So far as any statement herein includes matters of opinion, or estimates of future expenses and income, whether or not expressly so stated, they are intended merely as such and not as representations of fact. The information contained herein should not be construed as representing all conditions affecting the City or the Bonds. Additional information may be obtained directly from the City or the Underwriter. The foregoing statements relating to the Ordinance and other documents are in all respects subject to and qualified in their entirety by provisions of such documents. This Official Statement, starting with the cover page and all subsequent pages, including the appendices, comprise the entire Official Statement, which has been approved by the City. The City has represented to the Underwriter that the portions of'this Official Statement directly pertaining to the City neither contain any misrepresentation of material fact nor omit any material fact necessarv to understand the financial, economic or legal nature of the City or anv information presented herein. 28 APPENDIX A FORM OF LEGAL OPINION 1ST DRAFT 7/12/99 For Discussion Purposes Only (Form of approving opinion of Gottlieb, Fisher & Andrews, PLLC, bond counsel) (Date of Issue) 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 bonds described below (the "Bonds"): $ CITY OF BREMEKTON, WASHINGTON LIMITED TAX GENERAL OBLIGATION REFLrNT)ING BONDS? 1999 Dated: August 15, 1999 The Bonds are issued pursuant to Ordinance No. of the City (the "Bond Ordinance") and other proceedings duly had and taken in conformity therewith. The Bonds are issued to provide part of the funds necessary to advance refund and defease a portion of the City's Limited Tax General Obligation Bonds, 1994, and pay incidental costs thereof and costs related to the sale and issuance of the Bonds, all as provided in the Bond Ordinance. The Bonds are issued as fully registered bonds in the denomination of $5,000 each or any integral multiple thereof within a single maturity. The Bonds bear interest (computed on the basis ora 360-day year of twelve 30-day months) from their date or from the most recent interest payment date to which interest has been paid or duly provided for, whichever is later, payable December 1, 1999, and semiannually thereafter on each June 1 and December 1 to the maturity or earlier redemption thereof, at the rates set forth below, and shall mature on December 1 in each of the years and in the principal amounts set forth below: City ofBremerton, Washin~on [Date of Issue] Page 3 1ST DRAFT 7/12/99 For Discussion Purposes Only 1. The Bonds are lawfully authorized and issued pursuant to and in full compliance with the Constitution and statutes of the State of Washington and the Bond Ordinance. 2. The Bonds are legal, valid and binding general obligations of the City, enforceable against the City in accordance with their terms, subject to bankruptcy, insolvency, reorganization, moratorium and other similar laws affecting creditors' rights, and also to the exercise of judicial discretion in accordance with general principles of equity. 3. The City has irrevocably covenanted in the Bond Ordinance that, unless the principal of and interest on the Bonds are paid from other sources, so long as the Bonds are outstanding, the City shall make annual levies of taxes within the constitutional and statutory tax limitations provided by law without a vote upon all property within the City subject to taxation in amounts 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. 4. The Bonds are not "private activity bonds," as defined in the Internal Revenue Code of 1986, as amended (the "Code"). 5. The City has designated the Bonds as "qualified tax-exempt obligations" for purposes of Section 265 of the Code relating to the partial interest expense deduction authorized for banks, thrift institutions and certain other financial institutions in respect thereof, and the Bonds quali~ for such partial interest expense deduction available To such entities thereunder. 6. Assuming compliance by the City with applicable requirements of the Code that must be met subsequent to the issuance of the Bonds, the interest on the Bonds[, including any properly allocable original issue discount,] 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 alternative minimum tax on individuals and corporations under existing federal law. However, under existing federal law, interest on the Bonds received by certain corporations is to be taken into account in the computation of adjusted current earnings for purposes of calculating the alternative minimum tax applicable to such corporations; such interest received by foreign corporations with United States branches mav be subject to a foreign branch profits tax; and such interest received by certain S corporations may be subject to tax. [7. The difference between the amount of the Bonds maturing in the years __ and __ (the "Discount Bonds"), and the initial offering price to the public (excluding bond houses, brokers and similar persons or organizations acting in the capacity of underwriters or wholesalers) at which price a substantial amount of such Discount Bonds of the same maturity was sold constitutes original issue discount, which is excluded from gross income for federal income tax purposes to the same extent as interest on the Discount Bonds. Further, this original issue discount accrues over the term of each City of Bremerton, Washington [Date of Issue] Page 4 1ST DRAFT 7/12/99 For Discussion Purposes Only Discount Bond on the basis of a constant yield to maturity and the basis of each Discount Bond acquired at such initial offering prim by an initial purchaser of such Discount Bonds will be increased by the amount of such accrued original issue discount.] [8. The difference between the principal amount of the Bonds maturing in the years __ through , inclusive (the "Premium Bonds"), and the initial offering price to the public (excluding bond houses, brokers, or similar persons or organizations acting in the capacity of underwriters or wholesalers) at which price a substantial amount of such Premium Bonds of the same maturity was sold constitutes amortizable bond premium, which may not be deducted for federal income tax purposes. Further, this amortizable bond premium is determined on the basis of a constant yield to maturity over the term of each Premium Bond. For purposes of determining gain or loss on the sale or other disposition of a Premium Bond, the basis of each Premium Bond acquired at such initial offering price by an initial purchaser is decreased by the amount of the bond premium that has been amortized.] Except as stated in the preceding paragraphs 4, 5, 6, 7 and 8, we express no opinion as to any federal or state tax consequences of the ownership or disposition of the Bonds. The Code contains certain requirements which must be satisfied subsequent to the date of issue of the Bonds in order to maintain the tax treatment described above in paragraphs 4, 5, 6 and 7, including requirements relating to application of the proceeds of the Bonds, use of facilities financed with such proceeds, limitations on income derived from the investment of ~ross proceeds of the Bonds (as defined in Section 148 of the Code), and rebate to the United Stat~s Treasur~ of certain investment earnings on such gross proceeds. The City has covenanted to comply with these requirements, and the opinions expressed in paragraphs 4, 5.6 and 7 assume such compliance. However, we have not undertaken and do not undertake to monitor compliance by the City with such requirements; and failure bv the City to comply with such requirements could cause interest on the Bonds and any properly allocable original discount to be included in ~ross 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 Bonds. 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 Bonds, and thus express no opinion concerning the completeness or accuracy thereof. Copies of this opinion letter may be delivered to the Owners of the Bonds, 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 Bonds and may not be used or relied upon by you or any other person for any other purpose whatsoever, City ofBremerton, Washin~on [Date of Issue] Page 5 1ST DRAFT 7/12/99 For Discussion Purposes Only 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, FISH2ER & ANDREWS By Judith L. Andrews f:\bremertonXlt goref99\opinion 1ST DRAFT 7/12/99 For Discussion Purposes Only CITY OF BREMERTON, WASHINGTON ORDINANCE NO. AN ORDINANCE of the City of Bremerton Washington relating to the incurrence of indebtedness; providing for the sale and issuance of $ principal amount limited tax general obligation refunding bonds, 1999, to advance refund and release a portion of the City's Limited Tax General Obligation Bonds, 1994; providing for the date, denominations, form, terms, registration privileges, maturity, interest rates and covenants of the bonds; establishing a debt service account for the bonds; authorizing the execution of an escrow agreement and providing for the sale and delivery of such bonds to Banc of America Securities LLC, Seattle, Washington WHEREAS, pursuant to Ordinance No. 4491, the City has heretofore issued and sold its 1994 Bonds, of which $4,605,000 in aggregate principal amount are currently outstanding; and WHEREAS, the City reserved the right to advance refund and defease all or a portion of the 1994 Bonds pursuant to a refunding or defeasance plan; and WHEREAS, pursuant to chapter 39.53 RCW, the City is authorized to sell and issue, without an election, limited tax general obligation bonds of the City to refund the 1994 Bonds; and WHEREAS, the refunding of the 1994 Bonds will provide for a modification and restructuring of the debt service requirements; and WHEREAS, the incurrence of such indebtedness bv the City will not cause the total indebtedness of the City to be incurred without the assent of the voters of the Citv to exceed the limitations set forth in Chapter 39.36 RCW; and WHEREAS, the City deems it necessary and advisable that $ in principal amount of Bonds noxv be sold and issued to provide funds for the Refunding Plan; and WHEREAS, Banc of America Securities LLC has offered, by way of the Purchase Agreement, to purchase such limited tax general obligation refunding bonds upon the terms and conditions hereinafter set forth; NOW, THEREFORE, THE CITY OF BREM]ERTON DOES ORDAIN AS FOLLOWS: 1ST DRAFT 7/12/99 For Discussion Purposes Only Section 1. Definitions. Unless the context otherwise requires, the terms defined in this section, for all purposes of this Ordinance (including the recitals hereto) and of any ordinance supplemental hereto, shall have the meanings herein specified; words importing the singular number include the plural number and vice versa: "Beneficial Owner" means, with respect to any Bond, the Person named on the records of the Custodian as having the right, without a physical certificate evidencing such right, to transfer, to hypothecate and to receive the payment of the principal of, premium, if any, and interest on such Bond as the same becomes due and payable. "Bonds" means the City of Bremerton, Washington, Limited Tax General Obligation Refunding Bonds, 1999, dated August 15, 1999, in an original aggregate principal amount of $ , the sale and issuance of which are authorized by this Ordinance. "Bond Register" means the registration books on which are maintained the names and addresses of the owners or nominees of the owners of the Bonds. "Book-Entry Termination Date" means the fifth business day following the date of receipt by the Registrar of the City's request to terminate the book-entry system of registering the beneficial ownership of the Bonds. "City" means the Citv of Bremerton, Washington, a organized and existing under State law~ "City Council" means the City Council of the City. "Closing" means the date and time when the Bonds are delivered to the Purchaser in exchange for payment in full therefor. "Code" means the Internal Revenue Code of 1986, as heretofore or hereafter amended, together with all applicable rulings and regulations heretofore or hereafter promulgated thereunder. "Custodian" means (a) The Depository Trust Company'. New York, New York. or (b) any successor thereto engaged by the City to operate a book-entry system for recording, through electronic or manual means, the beneficial ownership of the Bonds, in which system no physical certificates are issued to the Beneficial Owners of the Bonds, but in which a limited number of physical certificates are issued to and registered in the name of'the Custodian or its nominee, and delivered to the Custodian; provided, that such book-entry system operated by the Custodian may include the use of subsystems of recording the beneficial ownership of Bonds which are operated by parties other than the Custodian and the use ora nominee for the Custodian; and the term "Custodian," as used herein, includes any party operating any such subsystem. 1ST DRAFT 7/12/99 For Discussion Purposes Only "Depositories" means the following registered securities depositories: (a) The Depository Trust Company, 711 Stewart Avenue, Garden City, New York 11530; (b) Midwest Securities Trust Company, Capital Structures-Call Notification, 440 South LaSalle Street, Chicago, Illinois 60605; and (c) Philadelphia Depository Trust Company, Reorganization Division, 1900 Market Street, Philadelphia, Pennsylvania 19103, Attention: Bond Department. "Escrow Agreement" means that certain agreement between the City and the Escrow Trustee, dated as of Closing. "Escrow Trustee" means fiduciary capacity as escrow trustee pursuant to the Escrow A~eement. ., acting in its "Escrow Obligations" means those certain Government Obligations necessary to accomplish the Refunding Plan, as set forth on Schedule 1 to the Escrow Agreement. "Government Obligations" means "government obligations," as defined in Chapter 39.53 RCW, as now in existence or hereafter amended. "Letter of Representations" means the Blanket Issuer Letter of Representations, dated November 19, 1997, between the City and the Custodian pertaining to the payment of the Bonds and the "book-entrv" system for evidencing the beneficial ownership of the Bonds prior to the Book-Entry. Termination Date. "MSRB" means the Municipal Securities Rulemaking Board. "1994 Bonds" means the City of Bremerton, Washington, Limited Tax General Obligation Bonds, 1994, in the outstanding aggregate principal amount of $4.605,000 as of this date. "NR_MSIR" means a nationally recognized municipal securities information repository, designated by the SEC. "Owner" means the person named as the registered owner of a Bond on the Bond Register. "Preliminary Official Statement" means the Preliminary Official Statement pertaining to the Bonds, dated , 1999. "Purchase Agreement" means the Bond Purchase Agreement for the Bonds by and between the City and the Purchaser, which written Purchase Agreement is on file with the City Clerk and is incorporated herein by this reference. "Purchaser" means Banc of America Securities LLC. "RCW" means the Revised Code of Washington, as amended. 1ST DRAFT 7/12/99 For Discussion Purposes Only "Refunded Bonds" means the outstanding 1994 Bonds maturing on December 1 in the years 2001 through 2007, inclusive. "Refunding Plan" means the plan to refund all of the Refunded Bonds with a portion of the proceeds of the Bonds and to pay the incidental costs and costs related to the sale and issuance of the Bonds, all as more particularly defined and described in the Escrow Agreement. "Registrar" means either of the fiscal agencies of the State in Seattle, Washington (as of the date of Closing, Wells Fargo Bank, National Association), and New York, New York (as of the date of Closing, The Bank of New York), which Fiscal Agencies are appointed from time to time by the State Finance Committee pursuant to chapter 43.80 RCW; and "Fiscal A~enc~es means both such fiscal agencies. "Ordinance" means this Ordinance No. __ of the City. "Rule" means SEC Rule 15c2-12. "SEC" means the United States Securities and Exchange Commission. "Secreta~~'' means the Secretary of the Board. "SID" means a state information depository. "State" means the State of Washington. Section 2. Findin,_,, Purpose and Description of Bonds. The City Council hereby finds that the City will benefit from modifying and restructuring the debt service requirements ora portion of the 1994 Bonds. The City authorizes the sale and issuance of its "Limited Tax General Obligation Refunding Bonds, 1999" for the purpose of advance refunding and defeasing the outstanding Refunded Bonds and to pay certain "incidental costs and costs related to the sale and issuance" (as defined in RCW 39.46.070) of the Bonds. The Bonds shall be in the aggregate principal amount orS ; shall be dated August 15, 1999; shall be issued in fully registered form as to both principal and interest; shall be in the denomination of $5,000 each or any integral multiple thereof 1ST DRAFT 7/12/99 For Discussion Purposes Only within a single maturity, shall be numbered separately in such manner and with any additional designation as the Registrar deems necessary for purposes of identification; and; shall bear interest at the rates; and shall mature on the dates and in the principal amounts, all as set forth below: Maturity Dates (December 1) Principal Amounts Interest Rates 1999 2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 201i 2012 2013 2014 2015 2016 2017 2018 2019 The Bonds shall bear interest (computed on the basis of a 360-day year of twelve 30-day months) from their date or from the most recent interest payment date to which interest has been paid or duly provided for, whichever is later, payable on December 1, 1999, and semiannually thereafter on December 1 and June 1 of each year to the maturity or earlier redemption thereof. If any Bond is not paid upon proper presentment at its 1SI' DRAFT 7/12/99 For Discussion Purposes Only maturity date, the City shall have the obligation to pay interest at the same rate from and a~er such maturity date until such Bond, both principal and interest, is paid in full. The Bonds 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 Bonds, all Bonds 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 Custodian or its nominee, and delivered to the Custodian. The Custodian shall hold each such Bond certificate in fully immobilized form for the benefit of the Beneficial Owners pursuant to the Letter of Representations until the earliest to occur of either (1) the date of maturity of the Bonds evidenced by such certificate, at which time the Custodian shall surrender such certificate to the Registrar for payment of the principal of and interest on such Bonds coming due on such date, and the cancellation thereof; (2) the Book-Entry Termination Date; or (3) the date the City determines to utilize a new Custodian for the Bonds, at which time the old Custodian shall ~provided the City is not then in default of any payment then due on the outstanding Bonds) surrender the immobilized certificates to the Registrar for transfer to the nexx- Custodian and cancellation as herein provided. For so long as any outstanding Bonds are registered in the name of the Custodian or its nominee and held by the Custodian in fully immobilized form as described in this Section 2, the 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 certificates 6 1ST DRAFT 7/12/99 For Discussion Purposes Only evidencing such Bonds shall be issued and registered in the name of any Beneficial Owner or such Beneficial Owner's nominee. The City may terminate the "book-entry" system of registering ownership of the Bonds at any time (provided the City is not then in default of any payment then due on the outstanding Bonds) by delivering to the Registrar: (a) a written request that it issue and deliver Bond certificates to each Beneficial Owner or such Beneficial Owner's nominee on the Book-Entry Termination Date; (b) a list identifying the Beneficial Owners as to both name and address; and (c) a supply of Bond certificates, if necessary for such purpose. Upon surrender to the Registrar of the immobilized certificates evidencing all of the then outstanding Bonds, the Registrar shall issue and deliver new certificates to each Beneficial Owner or such Beneficial Owner's duly appointed agent, naming such Beneficial Owner or such Beneficial Owner's nominee as the Owner thereof. Such certificates mav be in any integral multiple of 55.000 within a single maturity. Following such issuance, the Owners of such Bonds mav transfer and exchange such Bonds in accordance with Section 10 hereof. Neither the City nor the Registrar shall have at anv time anv responsibility or liability to any Beneficial Owner of Bonds or to anv other person for any error, omission, action or failure to act on the part of the Custodian with respect to payment, when due, to the Beneficial Owner of the principal and interest on the Bonds, proper recording of beneficial ownership of Bonds, proper transfers of such beneficial ownership, or any notices to Beneficial Owners or any other matter pertaining to the Bonds. Section 3. Place, Manner and Medium of Payment. Both the principal of and interest on the Bonds shall be payable in lawful money of the United States of America. 7 1ST DRAFT 7/12/99 For Discussion Purposes Only Prior to the Book-Entry Termination Date, the principal and interest on the Bonds shall be paid by the Registrar to the Custodian as the Owner thereof, for the benefit of the Beneficial Owners thereof, in accordance with the Letter of Representations. From and after the Book-Entry Termination Date, interest on the Bonds shall be paid by check or draft mailed on or before the interest payment date, to the persons identified as the Owners on the fifteenth day of the month preceding the interest payment date at the addresses shown for the Owners on the Bond Register. From and after the Book-Entry Termination Date, principal of the Bonds shall be payable upon presentation and surrender of the Bonds by the Owners at the principal corporate trust office of either Registrar. Section 4. Optional Redemption: Partial Redemrxion: Notice; Open Market Purchase: Cancellation. The Bonds maturing in the years 1999 through 2009, inclusive. shall not be subject to redemption prior to maturity. The Bonds maturing on or after December 1, 2010 shall be subject to redemption prior to maturitv at the option of the City, in whole or in part on anv date (maturities to be selected by the City and by lot within a maturity in such manner as ttxe Registrar shall determine), commencing on December 1, 2009, at a price of par plus accrued interest to the date of redemption. Any Bond in the principal amount of greater than $5,000 may be partially redeemed in any integral multiple of $5,000. Prior to the Book-Entry Termination Date. Bonds shall be partially redeemed in accordance with the Letter of Representations. From and after the Book-Entry Termination Date, in the event of a partial redemption of a Bond, upon surrender of such Bond the principal corporate trust offices of the Registrar, a new Bond or Bonds (at the option of the Owner) of the same maturity and interest rate 1ST DRAFT 7/12/99 For Discussion Purposes Only and in the aggregate principal amount remaining unredeemed shall be authenticated and delivered to the Owner, without charge to the Owner therefor, in any denomination authorized by this Ordinance and selected by the Owner. Prior to the Book-Entry Termination Date, the Registrar shall give, or cause to be given, notice ora call for redemption of any Bonds to the Custodian, as the Owner thereof, for the benefit of the Beneficial Owners thereof, in accordance with the Letter of Representations. From and after the Book-Entry Termination Date, notice of any such intended redemption shall be given by or on behalf of the City not less than 30 nor more than 60 days prior to the date fixed for redemption by first-class mail, postage prepaid, to the Owner of each Bond to be redeemed at the address appearing on the Bond Register on the dav the notice is given. The requirements of this section shall be deemed to be complied with when notice is mailed as herein provided, whether or not it is actually received by the Owner. In addition, such redemption notice shall be mailed within the same time period, postage prepaid, to the Depositories, to each N-RMSIR and to or their successors, but such mailings shall not be a condition precedent to the redemption of such Bonds. If such notice to the Owners shall have been given and ire City shall have set aside sufficient monev for the payment of all Bonds called for redemption on the date fixed for redemption, the Bonds so called shall cease to accrue interest after such redemption date, and all such Bonds shall be deemed not to be outstanding hereunder for any purpose, except that the Owners of such Bonds shall be entitled to receive payment of the redemption price and interest accrued on the principal of the Bonds to the redemption date from the money set aside for such purpose. 9 1ST DRAFT 7/12/99 For Discussion Purposes Only The City reserves the right to purchase any or all of the Bonds on the open market at any time and at any price. All Bonds purchased or redeemed by the City shall be surrendered to the Registrar for cancellation. Section 5. Debt Limit Not Exceeded. The City finds and covenants that the Bonds are issued within all constitutional and statutory debt limitations presently applicable to the City. Section 6. Pledge of Full Faith, Credit and Resources. The Bonds are limited tax general obligations of the City. The City hereby irrevocably covenants to include in its budgets and to make annual levies of taxes within the constitutional and statutory, tax limitations provided bv law without a vote upon all property within the Cit,~' subject to taxation in amounts which, together with any other money legally available therefor, shall be sufficient to pay the principal and interest on the Bonds as the same shall become due. The City hereby irrevocably pledges its full faith, credit and resources to the annual levv 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 ti~e Bonds shall be within and as a part of the tax levy permitted the City without a vote of the people and that a sufficient portion of each such annual tax levy to be made so long as the Bonds are outstanding, together with any other money legally available therefor, shall be and is hereby set aside, pledged and appropriated for the payment of the principal of and interest on the Bonds as the same shall become due. 10 1ST DRAFT 7/12/99 For Discussion Purposes Only · Section 7. Form of Bonds. The Bonds shall be typewritten, printed or lithographed on good bond paper in a form consistent with this ordinance and Washington law. Section 8. Execution of Bonds. The Bonds shall be signed on behalf of the City with the facsimile or manual signatures of the Mayor and the City Clerk, and shall have the seal of the city impressed or a facsimile thereof imprinted thereon. In case either or both of the officers who shall have executed any Bond shall cease to be such officer or officers of the City before the Bond so signed shall have been authenticated or delivered by the Registrar or issued by the City, such Bond nevertheless may be authenticated, delivered and issued and upon such authentication, delivery and issuance, shall be as binding upon the City as though those who signed the same had continued to be such officers of the Citv. Any Bond also max' be signed and attested on behalf of the City by such persons as at the actual date of execution of such Bond shall be the proper officers of the City although at the original date of such Bond such persons were not such officers of the City. Section 9. Authentication and Delivery of Bonds bv Remstrar. The Registrar are authorized and directed, on behalf of the City, to authenticate and deliver Bonds initially issued or transferred or exchanged in accordance with the provisions of such Bonds and this Ordinance. Only such Bonds as shall bear thereon a "Certificate of Authentication" manually executed by an authorized signatory of the Registrar shall be valid or obligatory for any purpose or entitled to the benefits of this Ordinance. Such Certificate of Authentication 11 1ST DRAFT 7/12/99 For Discussion Purposes Only shall be conclusive evidence that the Bonds so authenticated have been duty executed, authenticated and delivered hereunder and are entitled to the benefits of this Ordinance. The Registrar shall be responsible for its representations contained in the Certificate of Authentication on the Bonds. Section 10. Reqistration: Transfer and Exchange. The Registrar shall keep, or cause to be kept, the Bond Register at its principal corporate trust office. The City and the Registrar, each in its discretion, may deem and treat the Owner of each Bond as the absolute owner thereof for all purposes, and neither the City nor the Registrar shall be affected by any notice to the contrary. Payment of any such Bond shall be made only as described in Section 3 hereof, but such registration may be transferred as herein provided. All such payments made as provided in Section 3 hereof shall be valid and shall satisfy and discharge the liability of the City upon such Bond to the extent of the amount or amounts so paid. The registered ownership of any Bond mav be transferred. Prior to the Book- Entry Termination Date, the beneficial ownership of the Bonds may only be transferred on the records established and maintained by the Custodian. On and after the Book-Ent~' Termination Date. no transfer of an,: Bond shall be valid unless it is surrendered at an,,' principal corporate trust office of the Registrar, with the assignment form appearing on such Bond duly executed by the Owner or such Owner's duly authorized agent, in a manner satisfactory to the Registrar. Upon such surrender, the Registrar shall cancel the surrendered Bond and shall authenticate and deliver, without charge to the Owner or transferee therefor (other than any governmental fees or taxes payable on account of such transfer), a new Bond or Bonds (at the option of the new Owner), of the same maturity 12 1ST DRAFT 7/12/99 For Discussion Purposes Only and interest rate and for the same aggregate principal amount, in any authorized denomination, naming as Owner the person or persons listed as the assignee on the assignment form appearing on the surrendered Bond, in exchange for such surrendered and cancelled Bond. On and atSer the Book-Entry Termination Date, any Bond may be surrendered at the principal corporate trust office of the Registrar and exchanged, without charge, for an equal aggregate principal amount of Bonds, in any authorized denomination. The Registrar shall not be obligated to transfer or exchange any Bond during the 15 days preceding an interest or principal payment or redemption date. The Registrar may become the Owner of any Bond with the same rights it would have if it were not a Registrar and, to the extent permitted bv law, mav act as depositoo' for and permit any of its officers or directors to act as a member of, or in anv other capacity with respect to, any committee formed to protect the rights of the Owners of the Bonds. The City covenants that, until all Bonds shall have been surrendered and cancelled, it will maintain a svstem of recording the ownership of'each Bond t0hat complies with the provisions of the Code. Section 11. Mutilated, Lost, Stolen or Destroyed Bonds. If any Bond becomes mutilated, lost, stolen or destroyed, the Registrar may authenticate and deliver a new Bond of the same maturity and interest rate and of like tenor and effect in substitution therefor, all in accordance with law. If such mutilated, lost, stolen or destroyed Bond has matured, the City at its option, may pay the same without the surrender thereof. However, no such substitution or payment shall be made unless and until the applicant 13 1ST DRAFT 7/12/99 For Discussion Purposes Only shall furnish (a) evidence satisfactory to the Registrar of the destruction or loss of the original Bond and of the ownership thereof, and (b) such additional security, indemnity or evidence as may be required by or on behalf of the City. No substitute Bond shall be furnished unless the applicant shall reimburse the City and the Registrar for their respective expenses in the furnishing thereof. Any such substitute Bond so furnished shall be equally and proportionately entitled to the security of this Ordinance with all other Bonds issued hereunder. Section 12. Defeasance. If money and/or "Government Obligations" (as such obligations are defined in Chapter 39.53 RCW, as now in existence or hereafter amended) maturing at such times(s) and bearing such interest to be earned thereon (without any reinvestment thereof) as will provide a series of payments which shall be sufficient, together with any money initially deposited, to provide for the payment of the principal of and interest on all or a portion of the Bonds, when due in accordance w'ith their terms in accordance with a refunding plan adopted by the City, are set aside in a special fund (hereinatSer called the "trust account") to effect such payment and are pledged irrevocably for the purpose of effecting such payment, then no further payments need be made into the Bond Fund for the payment of the principal of and the interest on such Bonds, the Owners thereof shall cease to be entitled to any lien, benefit or security of this Ordinance except for the right to receive the money and the principal and interest proceeds on the obligations set aside in the trust account, and such Bonds shall no longer be deemed to be outstanding hereunder. 14 1ST DRAFT 7/12/99 For Discussion Purposes Only Section 13. Sale of the Bonds. The Purchaser has presented the Purchase Agreement to the City pursuant to which the Purchaser has offered to purchase the Bonds, under the terms and conditions provided in the Purchase Agreement, which written Purchase Agreement is on file with the City Clerk and is incorporated herein by this reference. The City Council finds that entering into the Purchase Agreement is in the City's best interest and therefore accepts the offer contained in the Purchase Agreement and authorizes the execution of the Purchase Agreement by City officials. The Bonds will be prepared at City expense and will be delivered to the Purchaser in accordance with the terms of the Purchase Agreement with the approving legal opinion of the City's bond counsel relative to the issuance of the Bonds printed on each Bond or attached thereto. Bond counsel has not been engaged to participate in the preparation or review of, or express any opinion concerning the completeness or accuracy of the official statement or other disclosure documentation used in connection with the offer or saie of the Bonds by any person, and bond counsel's opinion shall so state. Bond counsel has not been retained to monitor, and shall not be responsible for monitoring, the City's compliance with any federal law or regulations to maintain the tax-exempt status of the interest on the Bonds. Section 14. Delivery of Bonds; Temporary Bonds. The proper City officials are authorized and directed to execute and/or approve, as appropriate, all documents, including but not limited to, the final Official Statement pertaining to the Bonds, and to do everything necessary for the preparation and delivery of a transcript of proceedings pertaining to the Bonds, and the printing, execution and prompt delivery of the Bonds to the Purchaser and for the proper application and use of the proceeds of the sale thereof. 15 1ST DRAFT 7/12/99 For Discussion Purposes Only If definitive Bonds are not ready for delivery by the date established for Closing, the City Treasurer, upon the approval of the Purchaser, may cause to be issued and delivered to the Purchaser one or more temporary Bonds with appropriate omissions, changes and additions. Any temporary Bond or Bonds shall be entitled and subject to the same benefits and provisions of this ordinance with respect to the payment, security and obligation thereof as definitive Bonds authorized hereby. Such temporary Bond or Bonds shall be exchangeable without cost to the Owners thereof for definitive Bonds when the latter are ready for delivery. Section 15. Call of Refunded Bonds for Redemption. The City hereby calls the Refunded Bonds maturing on or after December 1, 2003 for redemption on December 1, 2002, at a redemption price of 102% of the principal amount plus accrued interest. Such call for redemption shall become irrevocable upon delivery of the Bonds at Closing. Section 16. Acquisition of Escrow Obligations. The proper City officials, including, but not limited to, the City Treasurer shall, at or prior ro closing, make appropriate arrangements for the payment for and delivery of any Escrow Obligations which are to be purchased in the open market pursuant to the Refunding Plan; and shall, prior to closing, deliver or cause to be delivered to the Federal Reserve Bank in Seattle, Washington, subscriptions for any Escrow Obligations which are to be acquired from the United States Bureau of Public Debt pursuant to the Refunding Plan. The maturing principal of and the interest on such Escrow Obligations, together with the Initial Cash to be provided to the Escrow Trustee pursuant to the Refunding Plan, shall be sufficient to pay all of the principal of and interest to become due on the Refunded Bonds from Closing to and including December 1, 2002, when due, and to redeem on said date, all of 16 1ST DRAFT 7/12/99 For Discussion Purposes Only the remaining outstanding Refunded Bonds at a redemption price of 102% of the principal amount due on the Refunded Bonds to be redeemed and interest accrued thereon to the date of redemption. The Escrow Trustee shall designate in any such subscriptions that all the principal of and interest on the Escrow Obligations subscribed for with the United States Bureau of Public Debt shall be payable to the Escrow Trustee. Such subscription may be amended as permitted by federal law. Section 17. Verification of Sufficiency of Escrow. The proper City officials, including, but not limited to, the City Treasurer are authorized and directed to obtain, prior to Closing, independent verification from a firm of independent certified public accountants that, among other things, the cash flow scheduled to be received from the Escrow Obligations, together with anv uninvested initial cash. shall be sufficient to make the payments described in Section 16 hereof. At Closing, if there has been any change in Escrow Obligations or cash deposited with the Escrow Trustee under this Ordinance and the Escrow Agreement, the City Treasurer shall cause the sufficiency of the Escrow Fund (as defined in the Escrow Agreement) to be verified in such manner as he shall deem necessary. Section 18. Escrow Agreement. The Escrow Agreement. in substantially the same form as the draft dated July , 1999, on file with the City Clerk, is hereby approved in order to accomplish the defeasance of the Refunded Bonds. The City Treasurer is authorized and directed to (a) execute and to deliver said Escrow Agreement, on behalf of the City, to the Escrow Trustee on or before Closing, with such changes as the City Treasurer deems to be in the best interests of the City; and such execution and 17 1ST DRAFT 7/12/99 For Discussion Purposes Only delivery of the Escrow Agreement shall evidence irrevocably the approval of the executed Escrow Agreement by the City; and (b) cause the Escrow Trustee to deliver notices of defeasance and redemption of the Refunded Bonds in accordance with the Escrow Agreement. Section 19. Establishment of Bond Fund; Application of Bond Proceeds. There is hereby created and established in the office of the City Treasurer a special fund to be designated as the "Limited Tax General Obligation Refunding Bond Fund, 1999" (the "Bond Fund"). The accrued interest on the Bonds received by the City upon the sale of the Bonds, if any, and any rounding amount shall be deposited into the Bond Fund and shall be applied to the payment of interest coming due on the Bonds. All of the remaining net proceeds of the Bonds shall be paid by the City to the Escrow Trustee at Closing, to be applied as set forth in the Escrow Agreement. Section 20. Tax-Exemption and Bank Qualification. The City covenants that ir will not take or permit to be taken on its behalf any action that would adversely affect the exclusion of the interest on the Bonds from gross income for purposes of federal income taxation, and xvill take or require to be taken such acts as may be permitted by Washington law and as may from time to time be required under applicable law to continue the exclusion of the interest on the Bonds from gross income for purposes of federal income taxation. Without limiting the generality of the foregoing, the City will not invest or make or permit any use of the proceeds of the Bonds or of its other money at any time during the term of the Bonds which would cause the Bonds to be "arbitrage bonds" within the meaning of Section 148 of the Code. 18 1ST DtLAFT 7/12/99 For Discussion Purposes Only The City covenants that it will calculate or cause to be calculated, and shall rebate to the United States, all earnings from the investment of Bond proceeds that are in excess of the amount that would have been earned had the yield on such investments been equal to the yield on the Bonds, plus income derived from such excess earnings, to the extent and in the manner required by Section 148 of the Code. The City has not been notified of any listing or proposed listing by the Internal Revenue Service to the effect that the City is a bond issuer the arbitrage certifications of which may not be relied upon. The City will take no actions and will make no use of the proceeds of the Bonds or any other funds held under this ordinance which would cause any Bond to be treated as a "private activity bond" (as defined in Section 14 l(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 Bonds as ~'qualified tax-exempt obligations" for purposes of Section 265 of the Code (relating to the deduction bx' 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 21. Preliminary Official Statement Declaration. The City has been provided with copies of Preliminary Official Statement), prepared in connection with the sale of the Bonds. For the sole purpose of the Purchaser's compliance with Securities and Exchange Commission Rule 15c2-12(b)(1), the City "deems final" the Preliminary 19 1 ST DRAFT 7/12/99 For Discussion Purposes Only Official Statement, as of its date, except for the omission of information on offering prices, interest rates, selling compensation, delivery dates, ratings, other terms of the Bonds dependent on such matters. Section 22. Undertakin~ to Provide Continuing Disclosure. This section constitutes the City's written undertaking for the benefit of the Owners and the Beneficial Owners of the Bonds required by subsection (d)(2)(ii) of the Rule. The City hereby agrees to provide or cause to be provided upon request to any person or at least annually to the 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 [aw; 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 mav cross-reference to any "final official statement" (as defined in the Rule) available from the MSRB or any other documents theretofore provided to each then existing NRMSIR or the SID. if one is created. The City further agrees to provide or cause to be provided, in a timely manner, to the SID, if one is created, and to either the MSRB or each then existing NRMSIR, notice of any of the following events with respect to the Bonds, if material: 1. Principal and interest payment delinquencies; 2. Non-payment related defaults; difficulties; difficulties; perform; Bonds; Bonds; and 1ST DRAFT 7/12/99 For Discussion Purposes Only Unscheduled draws on debt service reserves reflecting financial 4. Unscheduled draws on credit enhancements reflecting financial 5. Substitution of credit or liquidity providers, or their failure to 6. Adverse tax opinions or events affecting the tax-exempt status of the o 8. 9. 10. Modifications to rights of the Owners of the Bonds; Optional redemptions of the Bonds; Defeasances of the Bonds: Release, substitution or sale of property securing repayment of the 11. Rating changes. After the issuance of the Bonds, so long as the interests of The Owners or Beneficial Owners of the Bonds will not be materially impaired thereby, as determined by a party unaffiliated with the City (including, without limitation, a trustee for the Owners, nationally recognized bond counsel or other counsel familiar with the federal securities law), or pursuant to a favorable ';no-action letter" issued by the SEC, this Section 22 may only be amended in connection with any change in legal requirements, change in law, or change in the identity, nature or status of the obligated person, or type of business conducted, and only in such a manner that the undertaking of the City, as so amended, would have complied with the requirements of the Rule at the time of the primary 21 1ST DRAFT 7/12/99 For Discussion Purposes Only 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 Financial Information and notices of certain events shall terminate without amendment upon the defeasance, prior redemption or payment in full of all of the then outstanding Bonds. This Section 22 or any provision hereof, shall be null and void if the City (i) obtains an opinion of nationally recognized bond counsei or other counsel familiar with the federal securities laws to the effect that those portions of the Rule which require this Section 22 or any such provision are invalid, have been repealed retroactively or otherwise do not apply to the City; and (ii) notifies and provides the SID, if any, and either the MSRB or each then existing NRMSIR with copies of such opinion. The right of each Owner and Beneficial Owner of Bonds ro enforce the provisions of this Section 22 shall be limited to the right to obtain specific enforcement of the City's obligations under this Section 22, and any failure by the City to comply with the provisions of this undertaking shall not be a default with respect ro the Bonds under this Ordinance. The City Treasurer is authorized and directed to take such ~rrher action on behaif of the City as may be necessary, appropriate or convenient to carry out the requirements of this Section 22. Section 23. Contract; Severability. The covenants contained in this ordinance shall constitute a contract bet~veen the City and the Owners of each and every Bond. The City unconditionally covenants that it will keep and perform all of the covenants of the Bonds and this Ordinance. If any one or more of the provisions of this Ordinance shall 22 1ST DRAFT 7/12/99 For Discussion Purposes Only be declared unconstitutional or invalid for any reason, such decision shall not affect the validity of the remaining provisions of this Ordinance or the Bonds, and this Ordinance and the Bonds shall be construed and enforced as if such unconstitutional or invalid provision had not been contained herein. Section 24. Effective Date. This Ordinance shall take effect and be in full force ten days after passage and publication of an approved summary., consisting of the title. APPROVED I~y the City Council of the City of Bremerton, Washington, this ~ day of July, 1999. PASSED by the City Council of the City of Bremertom Washington, this __ day of July, 1999. APPROVED this MIKE SI-~EPHEPd). Council President __ dav of July, 1999. ATTEST: LYNN HORTON. Mayor Kathleen McCluskey, City Clerk APPROVED AS TO FORM: By 23 Judith Andrews, Bond Counsel 1ST DRAFT 7/12/99 For Discussion Purposes Only PUBLISHED: EFFECTIVE DATE: ORDINANCE NO. 24 AGENDA BILL BREMERTON CITY COUNCIL 1. SUBJECT: Public Hearing Appeal of an Administrative Interpretation of a side yard setback at 2111 Madrona Point Drive (PL99-0037). FOR AGENDA OF: July 28~ 1999 ORIGINATING DEPT.: DECD ORIGINATOR: Jon Holan DATE SUBMITTED: June 9, 1999 2. CLEARANCES: (Comment on back if 3. EXltIBITS: //// Comm. Dev. Dir.: /~ ~ CC Resolution # C~ty' Clerk.' z ~-¢ z'~ ~2~, l/', Notice of Public. Hearing -- City attorney~/r~-~/~ p~ppp~ Apphcation StaffReport with Relevant Attachments ENDORSEMENT)( INFORMATION__APPROVED BY COUNCIL PRESIDENT FO/R S~~AL: MAYOR '~-~ ~.' ~ ~ COUNCIL PRESIDENT /~//~,~~/// .... _/_~__'__~_=_~_~.- ~ f ,J 4. SUM3g~RY STATEMENT AND REQUIREMENT FOR COUNCIL ACTION: The appellant is appealing the issuance of a Zoning Ordinance Interpretation ofBMC 21.02.070, the definition of appurtenance, decks and porch as well as BMC 21.02.160, 170, and 180 that appellant states allow intrusions up to three feet from the property line. The appellant states that the deck/porch should be allowed by existing setback rules in effect and seeks Council review. Pursuant to Bremerton Municipal Code (BMC) Section 21.02.845 (d), this Type 11 decision can be appealed to the City Council. 5. RECOMMENDATION: Staff interprets the Zoning Code to hold that decks attached to the principal structure must maintain a five-foot setback to the side property line. Staff recommends that the City Council' conduct an open record hearing on this matter and make the appropriate determination to deny or uphold the appe-z I. 6. RESPONSIBLE OFFICIAL: ENFORCEMENT OFFICIAL: EXPIRATION DATE: N/A REVIEW DATE: N/A PULLED TABLED COUNCIL DIRECTIVE: 7. NOTICE OF ACTION ~ A APPROVED DISAPPROVED AMENDED DATE: 8, AGENDA BILL NO.: CLEARANCE COMMENTS: 10. 11. IMPACT OF NON-PASSAGE: May allow other attached decks/porches to be within three feet of the side property line. IMPACT ON STAFFING, BUDGETS, FACHJTIES, EQUII'~ OR OTHF~R RE~qOURCES Additional staff resources might be required to review revised plans and permit application. 12. RESEARCH SOURCES: Zoning Ordinance File Site Visits APPEAL OF BREMERTON DEVELOPMENT CODE INTERPRETATION Bremerton City Council July 28, 1999 Appellant: Paul Scheyer File Number: PL99-0037 Request: Review of an Administrative Interpretation of a side yard setback for a proposed attached deck at 2111 Madrona Point Drive. Attached Documents: Appeal Application received June 9, 1999 Interpretation of Side yard Setback Copy of Selected Definitions and BMC 21.02.070, 21.02.160, 21.02.170, 21.02.180 and 21.02.210 Copy of Chapter IV, Section 2 of the 1988 Bremerton Zoning Ordinance pertaining to Side Yards Photographs of the subject deck Copy of relevant portion of building plans Public Notice of Appeal Background: Jon Holan and James Coombes of the Department of Economic and Community Development met with the appellant at his home to discuss the construction of a deck and allowed intrusions into the side yard. At the conclusion of that meeting, Mr. Scheyer requested a written interpretation from staff conceming the allowed intrusions into the side yard for a deck. At that meeting, Mr. Scheyer mentioned the idea of a porch but no specific design was discussed. On June 7, 1999 Jon Holan, Planning Manager wrote a letter to Paul Scheyer stating a Zoning Interpretation of the Bremerton Municipal Code (BMC) regarding required setbacks for attached and detached decks consistent with the provisions of Section 21.02.210 (b) for accessory structures within residential zoning districts. The interpretation was for a proposed deck to be constructed which would be over five (5) feet above grade. On June 25, 1999, Mr. Scheyer received approval ora building permit for a deck which conforms to the five (5) foot side yard setback reqmrement. Summary of Appeal: The appellant requests a review of the Zoning Ordinance Interpretation made by Jon Holan, Planning Manager, on June 7, 1999 regarding the required side yard setback for a deck at 2111 Madrona Point Drive. Pursuant to BMC Section 21.02.845, this Type I1 decision can be appealed to the City Council. Staff Analysis: The decision being appealed is Planning Division's denial of a proposed attached deck to be located three (3) feet from the side property line. The subject site is within the "Residential, Low- Density" (SF-3) zone district which requires a five (5) foot side yard setback requirement. Staff interpretation of the Zoning Ordinance holds that an attached deck must maintain the required five (5) foot setback to a side yard property line in this residential zone. If the deck in not attached, then it may be located three (3) feet from the property line as an accessory structure. The following is an analysis tile issues presented by the appellant. Appellant: "BMC 21.02.070 definitions of appurtenance, decks, porch and BMC 21.02. I60, 170, and 180 allow setback intrusions up to 3feet from acljoining property lines. The Planning Manager ignores these rules in his decision that my porch/deck has to be 5feet from adjoining property lines." Response to Issues Associated with BMC 21.02.070: The definition of appurtenance (or appendage) in Section 21.02.070 ~ in part, "Such appurtenances as bay windows, low decks, open porches, awnings, chitons, and other features are sometimes given full or partial exemption from setback or oUher building regulations." Mr. Scheyer's proposed deck would be over five (5) feet above grade and would not be considered a "low decK" Staff would also note that the definition of appurtenance is solely a definition. The current ordinance provisions for front and rear yard intrusions makes specific provisions for decks that are separate from architectural appendages. Thus, these specific provisions regulate the location of decks into required yard areas. The general defimtion does not provide any specific development standards and should not be used as a basis to overturn other specific provisions of the ordinance. Mr. Scheyer also has mentioned to staffthat the proposed structure would be over a downstairs door and would function as a porch. No specific design was provided by Mr. Scheyer at our meeting and the interpretation was based on the concept of a deck. Depending on the design and function of the structure, staffmay determine it to be a porch. Based on the structure that is there (see photos) and the proposed structure approved by the building permit, it is staff's opinion that the structure is designed and functions as a deck rather than as a roof for a porch. Response to Issues Associated with BMC Sections 21.02.160 and 21.02.180: These sections pertain to front and rear yards. The structure m question is not located within either the from or rear yard. Thus, these two sections do not apply to the allowed location of the deck into the side yard setback. Response to Issues Associated with BMC Sections 21.02.170: This section does not allow any intrusions into the side yards. The section addresses parking spaces. Thus, as the section is written, no intrusions are allowed in the side yard setback. However, the City has allowed certain intmsions into the side yard such as eaves, chimneys, etc. Staff views these features as reasonable intrusions normally allowed in many zoning ordinances. The appellant has indicated that staff in the past has used the 1988 ordinance as a guidance for side yard setback intrusions. (Based on Mr. Scheyer's comment, staff'researched the issue and it appears that there may be a legal basis to allow consideration of the 1988 ordinance with respect to side yard intrusions.) If the 1988 ordinance is applicable regarding side yard intrusions, Section 2 of the ordinance does allow decks and porches:not exceeding 30 inches m height to extend into the side yard no closer than three (3) feet from the property line. In this particular instance, the deck would be clearly higher than 30 inches and would be required to comply with the five (5) foot setback requirement. As a result, the 1988 ordinance provisions would not allow a two (2) foot intrusion into the side yard setback for the type of deck that was discussed due to the stmmtre's height. Discussion of Section 21.02.210(b): Although not referenced in the appeal, this section of the current code is a relevant issue with regards to this matter. This section allows accessory structures to be located within three (3) feet of the side or rear properly lines. It is the basis for staffto determine that structures detached from a house in a residential zone can be located three (3) feet from the property line rather than five (5) feet. Staff acknowledges that the definition of accessory structure does not specify whether or not it is attached to the primaxy structure and is silem on the issue. However, it is our concern that without making such a distinction, oppommities would be created to circumvent the provisions of the ordinance. For example, it could be argued that portions of a house could be characterized as accessory to the primary use and its principal structure and be allowed to intrude into the side or rear yard setback. Issues: Based on the above analysis, staff has identified several questions for Council consideration in determining if Mr. Scheyer's deck can intrude into the side yard setback to within three (3) feet of the property line or if the required five (5) foot setback must be maintained: Should staff make a distinction as to whether accessory, structures are attached to a primary structure? To not make a distinction could allow potential circumvention of the ordinance. Conversely, making the distinction would mean that an accessory structure, such as a deck, would have two setback standards simply on the basis on if it is attached to the primmy structure. As an option, the Council may want to limit where the distinction should not be made such as only for decks, porches and other structures of a certain height that can be identified as clearly separate from the primary sumcmre. Assuming it is legally appropriate, should staff use the 1988 ordinance as a guideline to clarify allowed intrusions into the side yard area or should we only use the current Development Code and not allow any intrusions except for accessory structures? Using the 1988 ordinance would eliminate the need to make a distinction between attached and detached accessory structures discussed in Question 1. If the Council wishes to go in this direction, staff would return on August 18 with an analysis of the issue for Council consideration. Should a deck be considered an appurtenance? If so, how should development standards for decks and appurtenances be reconciled? (e.g. does the intrusion for decks apply only for decks up to 30 roches in height and higher decks be considered an architectural appendage?) The appellant would also ask what constitutes a porch? If a deck spans over a door, should it be considered a porch without consideration of design and function of the structure? Staff does not believe that this question is relevant since the ordinance tream porches and decks in the same manner. Conclusion: It is staff's interpretation of the code that Mr. Scheyer cannot locate his deck, as we understand it, within three (3) feet of the side yard property line unless the deck is detached firom the house. . ltv ( ded--eY~,~;~ ~lh~'~" CITY OF BREMERTON * 239 4th Street * Bremerton, WA 98337 Department of Community Development Building, Land Use, and Environmental Services August 11, 1998 Paul Scheyer 2111 Madrona Point Ddve Bremerton, WA 98312 Re: Building Permit Application 98-0439 & 98-0443. Dear Paul: The Bremerton Shoreline Master Program (SMP) requires provisions for a view corridor for new construction on shoreline property in the City of Bremerton or an ability to meet the conditions of Key 2 in Table 3-2 of the SMP (see enclosure). The proposed Phase One deck shown on your plans for Permit Application 98-0439 appears to encroach into your required view corridor, though the view corridor width is not shown on your plans nor can it be determined from the information provided (percentage of view corridor width is determined by the height of the house). Furthermore, the Bremerton Zoning Ordinance requires 5 FT side yard setbacks in this 'SF-3' zoning area (BMC Title 21 Appendix, Figure 130, LOT REQUIREMENTS). The site plan for Permit Application 98-0443 indicates a setback of 3 FT at the indicated south property line for the proposed deck. Since the indicated deck height exceeds the maximum 30 inch height allowed for decks allowed to within 3 FT of the side yard setback, the deck dimensions need to conform to the 5 FT setback provision of the Zoning Ordinance. Please contact me at this office or by phone at 478-5275 for any clarifications you need to correct your Permit plans to meet the SMP or Zoning Ordinance. Sincerely, James Coombes Land Use & Environmental Services Division cc: Judy Johnson enclosure. Celebrating 50 Years of Freedom BREMERTON BUILDING DEPARTMENT DEC ~ 2, 1998 BREMERTON BUILDING DEPARTMENT FEB ] 6 1999 BREMERTON BUILDING DEPARTMENT DEPA 'MENT OF COMMUNITY DEVEI 'MENT 28~'~FOURTH STRg~..T. BREMERTON, WA 9'-8337 MAY- 1999 COMPLAINT FORM l.ocalion of Violation: 2 Q/..~ /o/'~v/~,4 Owner's Name: Conil~lai,II N umber: ,P/"'jP,"'~tk. Tax Acct. g: ()wner's Address: ., City, State, Zip: Violation can be seen from: ~ City Street or Alley [-'"] Complainant's property (must give written permission to enter property to inspect) £'omplttinants m~O, remain attottyntous if we do not need to enter their property to see the ~,iolation. ilo~ret,er, for the purpose of aiding the in ~,estigation of this contphdnt, the complainant's ttume attd phone ttutttber will be tnost helpful ACTION TAKEN To Be Completed ily City Inspected By: Date: '~Vherc viewed from: XVhy we were there: '~Vhcn going on property--Explain by what authority: SECTION OF CODE VIOLATEI) RECOMMENDED ACTION B. Corner ~ots All lot lines abutting public streets are considered to be front lot lines and front yard setbacks shall apply. A corner lot having frontage on more than one street will have more than one front yard area, the depths of which will be determined by the front setback requirement of that zoning district. Refer to the illustrations in Figures III-2 mnd III-3 for further clarification. C. Intrusions into Required Setbacks Structures shall abide by the required front yard setbacks except as follows: Eaves, cornices, awnings, bay windows, architectural appendages, fireplaces, chimneys and permitted signs may project not more than two (2) feet into the front yard setback. Front yard setback requirements shall not apply to decks, platforms, and porches that do not exceed thirty (30) inches in height above the finished grade; except that raised decks, high or enclosed porches, balconies or similar architectural appendages that extend more than thirty inches above finished grade may project not more than six (6) feet into the front yard setback. Fences, free-standing walls, steps, walks, and driveways. Section 2: SIDE Y~DS A. Intrusions into Required Setbacks Structures shall abide by the required side yard setbacks except as follows: Eaves, cornices, awnings, architectural appendages, fireplaces, chimneys, and permitted signs may project not more than two (2) feet into the side yard setback, provided that such extensions may extend no closer than three (3) feet away from the side property line; Steps, decks, platforms and porches, if they do not exceed thirty (30) inches in height above the finished grade, may extend into the side yard no closer than three (3) feet from the property line; Fences, free-standing walls, walks, walkway steps, and driveways. IV-2 21.02.190 ACCESSORY USES AND sTRUCTUP-S. (a) A use or st.ructm,.._amt is in~ ~d ~r~e to a phn~ ~ or ~ ~d w~ch is ~o~ly fo~d in ~ ~e p~nci~ ~ or ~ s~l ~ ~ae~ ~ long ~ ~t pHn~ ~ or ~ is ~a~ to ~n~ue, or ~ o~e~ ~) Ac~ ~~ ~d ~s ~y not ~ e~blish~ wi~om a relat~ p~p~ s~e or ~ on ~e ~e pro~, ex&~t ~t ac~s~ ~s or ~c~s ~y ~ ~blish~ on a lot i~ately adja~nt to ~d ~der ~e ~e o~me~p ~ ~e prince's lo~ pm~d~ it is nm ~p~t~ from ~t lot by a ~ ~ or o~er figflt4f-~y, ~d is ~ ~e ~e m~g ~=. (c) Ac~ ~ or m~ s~ ~ dete~n~ by ~e deflation of Acces~' in BMC 21.02.070, ~e d~i~fion "AC' in ~e ~d U~ Tabl~ of ~s cMpter, or by ~e Dir~tor. T~i~ acc~ ~ ~d m~s include ~e follo~ng: (I) ~idenfi~. ~ge, ~ te~s co~ ~g w~h~ shop, ~omge sh~ ~o~, ~d g~e~. (2) Co~e~d~: Storage sh~ or enclo~, ~h d~p~e~, co~erci~ re.cie ~ng ~d l~ng, customer ~d employ~ p~ng, si~, ~d tin. at adjoin other proper'E,.'. No setback is required Lf the side or rear property line adjoins an alley. (c) Accessory. s'trucmres for the k~ping o£ Livestock or fowl s ~b. zdl conform to the reqmmments of Bremerton Muni~pal Code, Chapter 7.08.700. (d) Accessory. s'~rucrures on adjacent lots, that are not attached to their principal or any other structures, may be attached to each other at a side or rear property line (zero-tot-line) ,,vith approval of a Special Use Permit and if designed in accordance with UBC requirements for such (Ord. 4325 §1 (in part), 1991; Ord..1172, 1988). 21.02.220 MEASURING ItEIGttT OF A STRUCTURE. (a) The height of a building is the vertical distance above a reference datum measured to the kighesx point of the coping of a flat roof or to the deck line of a mansard roof or to the average height of the highest gable of a pitched or hipped roof. The reference datum which the lot gains iu accord, stroll be the ~ont lot line ~ 'he ~nt ~ eml~g ~ne) s~l ~mm ~m ~t lot l~e. (S~ Fi~ 070(c) ~d 070(e).) ¢) Ac~ Way: (I) ~e access ~y or ~y s~l ~ ~d~ ~e ~e o~p ~ ~e ~ of · e flag lot. ~ ~ment s~l not ~ ~ a me~ of pro~ng ac~s to ~e ~y of a flag fac (2) ~ag [om mm ~ pro~sd~ ~5~ ac~s to a pav~ ~d d~mt~ ~ght4f-~y eider acm~ my or ~m for a ~v~y of at nven~ (20) f~t male e~en~g ~m a fighter-my to ~e ~ ora ~g lot; or ii. A prate ~t in abu~ng pm~ Mve m~on ome~p. (Ord. 4172, 1988). 21.02.210 SETBACKS OF ACCESSORY STRUCTURES. (a) Aca:e&qory mc'tams shall ol~erve the front yard s~tbacks requirements of the zone in which they are located. Co) Acm~ssory s'a'ucmres in Resident/a/ zordng dis'mc'ts may be consu-ucted no closer three (3) feet from the side or rear property Lines i. ,k,L~,cimum height skail be six (6) f~:. ii. Max. imu.m height witki, n front yard setback area si-ail be uh. ree (3) feet; except an o.rx:n mesh c,'cionc 'c:5>e fen~ may not ex~,.,.~i a height of 42 roches. (2) Commercial Zones. i. ~x/mmm height shall be eight ($) fut. ii. Maximura height shall be six (6) feet when adjacent to a public right-of-way, or to a residential zone. (3) [ndumsia/Zone. i. Ma_'dmum height shall be ten (10) feet. ii. Max/mum height shall be six (6) feet when adjacent to a public right-of-way, or to a residential zone. (b) A Special Use Permit my be requested for higher fences or walls along property lines that are designed and intended for enhanced security, greater residential privacy or other reasons that wilt be of benefit to all affected properties. To: City Council members From: Glenna Malanea, City Attorney Dal~: 07/28/99 Re: Scheyer Appeal Attached is a memorandum from Knute Rife, Assistant City Attorney, to me, relating to some of the issues of the Scheyer appeal, scheduled for tonight's meeting. Of most significance is the issue of an accessory structure as an independent structure, and not as a part of the principal structure. Iris my opinion flint a correct determination of an accessory structure is that it must be independent ~h~principal structure. An attached deck to a home is not an accessory structure. MEMORANDUM To: Glenna Malanca From: Knute Rife Re: Scheyer appeal Date: 28 July 1999 This is a continuation on our conversation yesterday. Jon Holan dropped the attached "options" sheet off. Following are my remarks: Affirmation a. This is Part One of the right answer. An accessory structure is structurally independent, not a part of the principal structure. A five-foot side yard setback is required in the SF-3 Zone per BMC 21.02.130 and Figure 130. No structure may intrude into that setback, barring some exception. b. This is Part Two of the right answer. Unlike front yards (BMC 21.02.160) and back yards (BMC 21.02.180), there is no intrusion provision for side yards (BMC 21.02.170). The present §170 appears to be a mistake, being originally a 1989 amendment to the 1988 code that misreferenced § 170 and consequently replaced the side yard provisions with parking provisions. Nevertheless, since § 170 was readopted without correction in 1997, I can think of no rule of statutory construction that would allow the Council to ignore the plain language of the ordinance and substitute in the replaced side yard intrusion provisions. That would be an ordinance amendment requiring legislative, not quasi-judicial, action. c. This is a wrong answer. The first reason is discussed above. The second reason is that the 1988 ordinance has been repealed and replaced and so is in no way on the books. This option would put a part of it back on. Again, legislation is an inappropriate action for a quasi-judicial proceeding. Reversal a. This is a wrong answer. As stated above, an accessory structure is not a structural appendage of the principal structure. Consequently, the three-foot setback for accessory structures found in BMC 21.02.210 should not apply. This is a wrong answer. Such an action would require a variance pursuant to BMC 21.02.910. This is an appeal of an administrative decision, not a review ora variance application. Review objectives and standards are different, and there is no indication that adequate notice has been given for a variance proceeding. This is a wrong answer. Factually, there is no basis for finding the deck is less than Page 2 do 30 inches. Legally, it is inappropriate to resurrect the 1988 ordinance in this proceeding. This is a wrong answer. Again, neither granting of a variance nor resurrecting the 1988 ordinance is appropriate. 3. Since there is no basis for reversal or application of {}210, there is no basis for remand. 4. The Council may do this, but I am unaware of any purpose for it. I have also learned that Scheyer may argue that, since § 170 is in error, the entire process is illegal, and the City has nothing to enforce. I have never heard of the executive and judicial branches being barred from acting simply because of a legislative error. Errors do not render legislation void. We enforce what is on the books umil it is removed from the books, either by amendment or by some form of voiding (e.g., a court determining that an ordinance is unconstitutional or otherwise ultra vires). We may no more ignore what is on the books than we may administratively/judicially amend what is on the books. City Council Options on Scheyer Appeal of Setback Interpretation 1. Affirm Staff's interpretation of the code for one or more of the following reasons: a. An attached deck/porch is not considered an accessory structure, but an addition to the primary structure. b. No intrusions are allowed in the side yard setback because the current Zoning Ordinance makes no provisions for side yard intrusions. c. Apply provisions of the 1988 Ordinance with regard to intrusions into the side yard area, which requires deck/porches over 30 inches above grade to maintain a five-foot setback. Overrule Staff's interpretation and allow the appellant's deck/porch to be constructed to within three feet ofthe side property line for one or more of the following reasons: a. A deck/porch is an accessory structure whether attached or detached from the primary structure. b. BMC 21.02.070 definition of appurtenance states in part that either a deck or porch "are sometimes given full or partial exemption from setback or other building regulations." Based on a reason supported by Council, the deck/porch is allowed. c. Determine that the proposed structure is a porch of less than 30 inches in height and apply the provisions of the 1988 Ordinance. d. Determine that a deck/porch of over 30 inches in height is an architectural appendage and apply the provisions of the 1988 Ordinance. Remand back to DECD for review of revised drawings by appellant that more clearly indicate the proposed structure as a porch allowed to within three feet of the side property line. 4. Table for further review at next meeting. PERMIT CENTER 286 Fourth Street, Phone: (360)478-5275 Bremerton WA 98337 Fax: (360)478-5278 BREMERTON BUILDING DEPARTMENT Request for Review of Decision of Director, Planning Commission or to Appeal a Cease & Desist Order Reference: Zoning Code Section 21.02. 935 & 2I. 02. 945 Request Party: Pt~_ bO'[ ~. :~ ~ ~y ~-Y'- ~our nme) (Your mailing address) 3z - Y77- 2 (Tdephon~ Number~ Please provide a with material facts claimed to &up~o~ your conte~tio~s. Usc 4dditionai :aver iff necessa~' Please provide a brief statement of thc relief sought and the reasons wh, :he decisiow'action should be reversed, modified or remanded. Use additional pages if necessa~-. Appellant's Signature Review to . uncil- ~ G ~ .O O Review to Plann~g Commission - S40.00 (Only appticaN~ to a Cease & Desist Order Appel) Reviews will be scheduled to be heard before thc Brcmerton City Council as soon as possible, allowing for adequate preparation and notice. You will receive written notification of the Council hearing date mailed to your address given above. The City Council dccision is the final legislative decision. Last pnnted 04/29/98 9:46 AMC:hMy DocumentsLRequesl for Review of Decision of Director.doc CITY OF BREMERTON · 239 4th Street · Bremerton. x3,'A 98337 June 7, 1999 Mr. Paul Scheyer 2111 Madrona Point Drive Bremerton, WA 98312 Re: Interpretation of Sideyard Setback Dear Nh'. Scheyer, Thank you for the opportunity for James Coombes and me to visit your residence and review your proposed deck construction. Your residence is located at 2111 Madrona Point Drive and is within the Resident/al Low-Density (SF-3) Zone District. At our visit, the question arose as to whether the deck can be located three (3) feet from the sideyard property line or must it maintain the required setback of five (5) feet. At that time you had also mentioned the possibility of creating a porch rather than a deck. In addition, you had informed me that my predecessor, Ron Hou~ had indicated to you that the sidevard setback intrusion provisions of the 1988 Zonin_~ Ordinance still applied since it was erroneously left out when the Ordinance was codified. - Since our meeting, I have had an opportunity to review the !998 Ordinance and subsequent amendments a.s well as meet with the Assistant Citw Attorney in order :o mswer your question of the setback requirement. Based on this review, the determination is that 2'-2,,e de~k is attached to the house, the deck must maintain the same five (5) foot setback as he dwe~2ing since it is considered pan of the principal structure. If the deck is not attached, it can be eiaced with/n three (3) feet of the property line consistent with the provisions of Section 21 ~" ~ ~ a . ·-~.~, ~ (b'} _-'or accessory, str,acrures within Residential zoning c[isufcts. ~t ~s my unders~anding that this has been ~a~ s interpretation on sideyard setbacks for several years. Regarding the setback intrusion provision of the 1988 Ordinance, :..t does allow decks and oorches of not more than _30 inches in height to be located within three (5) feet of the propervy I/ne (copy attached). However, your deck or porch exceeds the 30 inch heig/nt [kmi: and must conform with the five (5) foot setback. Thus, any provision from the 1988 Ordinance aile~ing decks and porches into the sideyard setback area is not relevant. However, it should be noted :hat Emergency Ordinance 4591 (anached), wkich was approved by the Ci~' Council on Apr:2 2. 1997, repealed the 1988 Ordinance and reolaced it with the codified version of Bremerton Mu~Jcir)al Code Chapter~"1.02. According to Section 21.02.845, this determination can be appea/ed ~o the City Council within fourteen (14) da~vs of the date of this letter, if you have any further questions, please do not hesitate to contact me at 478-5243. HOLAN arming Manager cc Phil Berry, Judy Johnson * Equal Opportunity Employer [20 B. Corner Lots AIl lot lines abutting public streets are considered to be ~ront lot lin~s and front yard.:~se~backs shall apply. A corner lot having frontage on ~re than one street will have more than one front yard area, the depths of which will be determined by the front setback requirement of that zoning district. Refer to the illustrations in Figures III-2 and IIi-3 for further clarification. Intrusions into Required Setbacks StrucTures shall abide by the required front yard setbacks except as follows: Eaves, cornices, awnings, bay windows, architectural appendages, fireplaces, chimneys and permitted signs may project not more than two (2) feet into the front yard setback. o Front yard setback requirements shall not apply to decks, platforms, and porches that dc not exceed thirty (30) inches in height above the finished grade; except that raised decks, high or enclosed porches, balconies or similar architectural appendages that extend more than thirty inches above finished grade may project nc5 more than six (6) feet into the front yard setback. Fences, free-standing '~=,-T!s, steps, walks, and driveways. Section 2: SIDE YARDS Ao Intrusions into Required Setbacks - ya_. setbacks Structures shall abide by the required =~ie ~ except as follows: Eaves, cornices, awnings, architec ..... ' appendages, fireplaces, chimneys, and permiited signs may projec5 not more than two (2} feet into the side yard setback, provided that such extensions may extend no closer than three (3) feet away from the side property line; o Steps, decks, platforms and porches, if they do not exceed thirty (30) inches in height above the finished grade, may extend into the side yard no closer than three (3) feet from the property line; Fences, free-standing walls, walks, walkway steps, and driveways. IV-2 EMERGENCY ORDINANCE NO. N'J"c/[ · AN EMERGENCY ORDINANCE OF THE CITY OF BREMERTON RE-ADOPTING BREMERTON MUNICIPAL CODE CHAPTER 21.02, ZONING CODE, TO DEMONSTRATE COMPLIANCE WITH THE GROWTH MANAGEMENT ACT AND ROW 36.70A AND CONSISTENCY WITH THE CITY'S COMPREHENSIVE PLAN; REPEALING ORDINANCES NO. 4172 AND NO. 4555; AND DECLARING AN EMERGENCY. WHEREAS, Bremerton is required by the Growth Management Act (GMA) to adopt a comprehensive plan and development regulations that are consistent with and implement that Plan, in accordance with RCW 36.70A, et seq.; and WHEREAS, Bremerton adopted its revised Comprehensive Plan in April, 1995, and re-adopted the Plan by Ordinance No. 4545 in February, 1996, to ccmpty with an Order of the Central Puget Sound Growth Management Hearings Board following an appeal; and WHEREAS, the Bremerton Zcning Ordinance, adoctec in Novemb, er, 1988. Ordinance No. 4172. was determined ~.o ~e sui3stantiaily consistent with the revised Comprehensive Plan, was not re-adopted in its entire'~/, but has Seen amended correct minor inconsistencies, ,'.o adjust to Plan Amendments, and to incorporate the requirements of ESHB 1724; and WHEREAS, the City of Bremer't, on has reviewed its Zoning Ordinance and determined that it complies with the requirements of GMA and P-,CW 36.70A, and is consistent with the City's Comprehensive Plan; NOW, THEREFORE, THE CITY OF BREMERTON DOES HEREBY ORDAIN Section 1. The Bremerton Zoning Ordinance, consisting of Chapter 21.02 of the Bremerton Municipal Code, as attached hereto as Exhibit "A", is hereby adopted pursuant to RCW Chapter 36.70A. Section 2. The Official Zoning Map' of the City of Bremerton, consisting of an eleven-page zoning atlas attached hereto as Exhibit "Bi', is hereby adopted pursuant to RCW Chapter 36.70A. Section 3. Ordinance No. 4172 (adopting the Zoning Ordinance in 1988) and all amendments thereto, except Ordinances No. 3136, 3421, 3429, 3451, 3543, 3546, 3552, 3636, 4067, 4168, 4308 and 4354, is hereby repealed. Section 4. Ordinance No. 4555 (adopting an amended citywide Zoning Map in 1996), and all amendments thereto, is hereby repealed. Section 5. This Emergency Ordinance is necessary to preserve the public peace, health, and safety.; to achieve interjurisdictional ackncwiedgement that the City's develooment regulations are in compliance with State law and consistent with the Breme~on Comprehensive Plan; and to ensure that the Cib/can continue to plan, zone. permit, and secure the funds it needs to implement its plans wit,,out doubt or unce~ainty regarding its GMA compliance status. Section 6. This Emergency Ordinance shall become effective upon passage the Breme~on City Council. APPROVED by the City Council on the first reading this day of ," ,~ ~ _?~J 1997. PASSED by the Bremerton City Council this L~/_..f z~¢~ J ,1997. day of ~nt Bremerton City Council APPROVED this day of ~ , 1997. LYNN HORTON, Mayor ATTEST: KATHLEEN McCLUSKE'~ity Clerk PuDlished: Effective: 13-C:re-adopt.zo Exhibit "A" Title 21 Bremerton Municipal Code Chapter 21.02 ZONING CODE [Text of the Zoning Code, with Appendix] Exhibit "B" City of Bremerton M Zoning Atlas [11-page Zoning Atlas] and other unusable or tmdevelopable areas. AD JOES'lNG. ProperD' that touches or is dir~-'~dy across a right--of-way, other Lh2.n a liraited access Nghway or arterial with four lanes or' '~c or more, from the subject proper?. AD.MhNISTR_ATIVE A_PPROVA.L. A perrmt or other approval that is granted directly by the Director of Commtmi.ty Development or Ns/her authorized si=oratory and generally without a public hearing or approval of a committee, commission or other body. ~ ADULT BUSINESS. A business which is either an adult theater, adult bc~okmore, rnasmge parlor as defined in BMC 5.92, or adult cabaret. ADULT THEATEI~ .&an establishment wh/ch presents material relating to sexual activities and =.-?eck2ed anatomical areas for obser,,'ation and resu-ici~ to adult audiences. ADLU_,T BOOKSTORE. An esmblishment 'd:mt 5.as a sigx-fi.fieant portion of its stock and trade in publications relating to .specified se.'caa.1 ac'dvit/es or .specified anatomical areas. ADULT CABARET. features enter'~v, iners or attendants dressed so as to emphasize .rpecific anatomical arezs or who~ ~rfo,,'-mance or other ac:_iv'ifies include or mirmc ~-'oecffic se.nm4 activities. ALLEY. .amy public fi~t-of-way or thorougi'Xare having a .typical width of at least ten (i0) f~L but generally not mom than th. irty (50) f~t, wk/ch ,5as beech deal/cared or d~..ded to the public for public us~ and w'hich r~ffords only s,.~on :-c. zo.' means of access to abutting properties, primarily for service purposes. ALTERATION, STRU CTU'I:L-kL .Any changes in the supporting members of a structure, to the con.figurations of the roof or exterior walls. or repairs that would prolong the life of the rdpport/ng members of a building or structure. Ttds definition does not include minor actions tach as adding a doorway or window, or at-taching architectural features, appurtenances, or ado,,-mnents. ANTENNA TOWER. The tower, mast. pole or other support structure used to hold an antenna in place or to elevate it re a higher level. The antenna itsek' is generally considered an azckit~n.u-al appurtenance, but its tower structure is often more extensive and may require adctiriortal plans and approvals. .APPEAL. A formai r~uest made dUnng a <-pecified period of rime follovdng a decision, asking that the decision be r~onsifiered by a ki~er authority, u_mally following a public hearing, in accordance with the procedmes of this ca~e. .APPLICAaNT. A persan submitting an application for any permit or approval required by the CiD' and who is uhe ovimer of the subj~ properD' or an auuhor-ized agent of the owner. .APPL-RTEN.-M.N'CE (or .APPENDAGE). .An ar:i',it~--~'mml feature, d~-'orafioru etc., tlmat has be~n added to or e.'cten~ our,yam ~'om the :x-:.encr of a bmldinz mud is not a primal/ ccm~nent of me =~-wa~-a~-e itsek". Such a?pu..~enances as bev ~'ineews. iow d~ks. .:,or:hes. av, m/ngs, c?urmnep's, and other f~mres z_-: scme:./mes ~ven 3zll ,r partial ~xemp~on f.-om setback or other bu!iaing reg-uianons. ARCADE. A place cf amusement ofimariN of gmmes of s~!i, ~ch as rodeo games, :in-bail mach2nes, and zz.,-TJval-sryie sk/ii games. ..x'm m~:ade mmv be a pfim=,m'2,' ,use or may be accessory to another use ~ch as a res,aura.nc bowling aitey, hotel, te,n-r2:'~.zl, etc. ART GALLERY. For pm-poses of zordng, an z:-z galleo' is a business establishment or other m'-ivate or public place intended primarily for einJbifions where people may view anddor purchase paintSngs, s,Talprures, or other works. .-Un art "studio" is a common accessory use. BAY WENDOW. A window jutting outward from an exterior wall of a su-ucrure and forming mn a/cove v,'ithSn. 21-6 \2? CHARLESTON BUSrNESS DISTRICT. yea consisting of all pro.mxrties that front on Callow Avenue south of Eleventh Strut and nor-& of First Street as well as other lands as designated in the Charleston Neighborhood Plan. (See Fi=m.u'e 0?0(a).) CFIURCFI/RELIGIOUS INSTITUTION. establisl'unent primarily intended for the conduct_lng of organized reii~ous sen'ices and relat~,.4 activities, which may include reii~ous education, meting halls, and kitchens or places for personal worsNp or mediation but do not include pre-schools, parockial schools, day care facilities, major recreational facilities, vekicle or eqmpment storage yards, or other functions that are not clearly a n~essary or integral part of the reliDous institution. CITY. When capitalized and used alone. · Mthout a s-pecLqcally named ciD', "Ci.ty" sixali mea_n the CiR' ofBremenon, Wasb2ng-ton. CLE~'IC. .&n establishment used for the menm.i and physica2 ca~-e of hu.mxm patients, but wkich excludes facilities for ovem/~ht patient care. COMPREHENSIV'E PLAN. l'--ne 20-veer :omDrehensive land use, t_mns,-~, ration, housing. ,,,~4,;~.~.~.~. and cam tel. facilities ~ian~ adopted, by the Cir,' and pe~odicaily rev/seal in accordance w/th the adopted scheduie for r~Se,a' and r~'isiom and to -"n2Zntain compliance with the Grov,~& XDmagzment A~ of 1990. as amended. CONVALESCENT / NURSING ~OM]~. An esabiish.ment licensed by the Sate of Washing'ton as a facility.' provid/ng full-time care for in~.'v/duzds who are ,arable to care for themselves by reason of chron/c illness or i,~,rrrti.ty. TNs does not include hos'pit:~is, sartitanums, or tr',.atment centers. CRITICAL .AREAS. Areas with a critical mchar~ng eff~t on aqu.Lt%rs used for dri 'nk/mg water, fish and wildlife habitat conservation areas, ffequendy flooded areas, geologically hnT_~rdou5 areas, weL[andq, and sLreams, as defined in the Ci%"s Critical Lands Ordinance. CRITICAL LANDS O RDE~ANCE. Bremerton Ordinance No. 4422 (as amended) wNch includes provisions to classify., protect, and preserve Bremerton's zrifical areas; provides standards to manage development in assocmtion with these arc-ecs; and desig-nates some of these are~n.s as env/ronmentalty sensitive in accordance with the State Envirommental Poliq¢ Act (SEPA). DAY CARE FACILITY. A faciliD' licensed by the State of Waskinff. on and approved by the City. m provide re=re, tar care for aduiu or chSldren for ~riods of less than 24 hours. Fatal/ties providing care for 1] or more persoms are re=re, flared by Special Use Penrfit. Smaller facilities are allowed but not re=m_dated by the Ciry. DECK. .4m o~n plaffc,."m wider than 15 inches. -"7 A d~k may be fr~-s'~-,.Tmd2n~ cantilevered from a [ bu/lding, or correct, ed :o the g-round w/th steps or ] r'=_m:s. A deck that is !-2~her than 30 inches/ a~ve nmsn =.oracle ma:.' be :arc.wed to ~ a rmse.d/ d~k, a rooftop de::.-:, a ba.i:any, or other stumble ~ [e,%-m. DELICATESSEW.. .-~'- estabiisi'wnenr selling c~kea or Drese~,'ea ,~,_-~ such ~ m~ts. areaared salads, desse.:-~s, chases, pickies. sandwiches, soR &-ir,/~. eec., g:nemily for zora-umpr_ion off the DENSITY. A mea~,~re of res/dendal concent_rat/on, usually exT. ressed as the number cf dwel!ings ~r a~e of it:cd. For example, a 100 acre area contairdng 3~35 d'~.'ellings has a densiD' cf .Lb_-~e dwe!!Sngs ~r acre. "Net" densi7,' is de:e.wr'dn~ by ~ing the acr~ge total mr2er all u.ndevelopabie z.~,2.~ (s'u'~t_s, open space, wetlands, etc.) have been removed. 'Fne U.S. Census Bur~u defines "~,mmt de,iD"' as 200 persons per square mile er about one dwelling per ten acres. DENSITY BONUS. Additional residential dwelling un/ts that ma.',, be approved through the Planned Unit Development process, in excess of the ma_x/mum base densi5' allowed in that zone, when add/fional open ~ace or other amen/fi~ are provided. LOT. WATERFRONT. A lot of wMch an',' portion abuts wetlands. LOT COVER-AGE. That portion of a lot covered by the roof areas of all srmct~es, but not including d_riveways, walkways, patios and low open decks. LOT DEPTH. The horizontal ch~xnce betw~n · e front and r~,~zr property lines of a lot. m~tsu.red along a line midway between the side property lines. The depth of an irre~mzlar lot or a lot 52,,-ing more or fewer than two side lots lines will be determined in the most reasonable manner, based on the lot's longest average dimension. LOT LEN'E, FRONT. Any property line that abuts a public str~k private strut, or all~y (ir' no strut frontage) is considered a frontage and shall meet the m/n/mum lot frontage development reqmrements of ti'tis code, unless other~4se desi_mxated fin_rough approval of a Z, ordng Ordirm.ncc S.r>em'al Excep. fion. LOT LLN'E, REAR. The property line moa opposite or most d2stant from the desi=2mated front ~w ilne and that does not intersect any from line. Corner lots often have no r,ezr lot line. Ln :.he ~ of a wamrfront property, the rear lot line [s that which adjoins the ordina.o.' h/g2a water 12ne (ObTkx,Z), unless grant~ a Zon/ng Ordinanze 5wziai Exception. onr or re. ar lot Iin~ bv defiuifion, and mn)' lot line r2~at inters,?.~s a front lot line. LOT WIDTH. The average horizontal ber~,'~n side lot lines, measured at fight angles the lot depth line. Determ/ning the width of Lwe~_m. flar tot may rcxtuire reasonable modLficat/ons ro tSxis procedure. .M_~N'ETTE BUSEN'ESS DISTRICT. .421 properties in the vicinity, of the east end of the .Manerte Bridge that are included in the General Business (GB) zone and th,at may be further ex.-panded through subsequent mzones. (See Fig-ure 070¢).) MANUFACTURED HOME. A residential trait on one or more Chassis for towing to the ~int of u_se to be used with a foundation as a dwelling un_it. This mn.it shall bear art insignia issued by a State or Federal re~m.flatory agency. Lndicat_ing that the manufactured home complies with all applicable construction s*,mndards of the U.S. Department of Housin~ and Urban Development ('H-UD). Cornmerzial coaches, r~-'r~fional veh/cles, travel Lra/iers. and motor homes are neither manufacmrec[ homes nor dwelling umts. (S~ "Mobile Home") MARIN..k. A faciliw which provides moorage or wet or dry. storage for watercml'~ or float planes, and which ma-,' offer rrna.tine-related sales MOBILE HOME. A resident/al un.it similar to a Mzmufacrured Home but consu'-u~ed prior to June 15, 1976 and not in compliance with the f~e.,~A N'flxnufacrm-ed Housing Constracdon and Safe~' Standards C~e tlq'~'D Code) which was enamed at that time. Mobile Homes are acconunodat~ witlfin some e~smag mobile home :arks but net on ind2vid~ [ots with.in C'~e Cie' cf Br~menon. (See "Mz:'."~-.n~--mr~ Home") MOTEL. A faciiir,' '2~.~_: off:rs u-'a.nsienr acco~ficns to '2ne ~:ne~M 2ublic. ~4~ ar m ~e ouBid: ~out '2~e n~ssib~ cf ~s~g u~mugh ~e ~n lobby of 57e b~Idng. A motel ~y include m-r~m ~:zSen facilities and ~v offer la~&w facilities, ex~rzi~ r~. flower ~d ~ shops, u~ve! m~i~s, b~quet ~d convention facilities ~ncfio~. MUSEUM. A bu2id2ng, room, vessel (boat or ship), or site intende, d for the preservation and exh. ibition of artistic, Mstorical, or scientific objects. In the interests of loc_al historic preserva~ork the Land Use Tables allow the use of historically signi.ficant buildings in residential areas to be used as musetm~. NONCO~N'FO~MING LOT. A lawfully created lot which ~ chamc:efis'dcs that no longer 21-12 ~-e considered ~ccesso~' m a business or pnncipal use. STORY. That portion ora building ttmt extends from the floor surface to the surface of the floor above or, in the case of a top floor, to the ceiling or roof above, ff a fin/shed floor level is more · gm.n six f~t above the fin/shed grade for more than fg:ty percent of the total perimeter, the area beneath that floor shall be considered a s-toD'_ STREET. 'lne improved se~.q, ion of any public or private right-of-way intended primarily for motor vehicle travel and which affords the principal means of access to abutting property, together with bicycle lanes, sidewalks, and related improvements. STREET. PRIVATE. A parcel at least 20 in width, created speo~Iy to provide motor vek/cte access to abutting properties, the owners of wNch share in its ownership and maSnten~nce re .sponsibilities. STRUCTIYR.E. Tnar which is built or ISTRUCTL-R_E, ACCESSORY. A gnat is incidental and subordinate to a princ:p~ su-acTm-e and which is ~astoma.div fou.nd in connection wfith the pr/nc/.na/ m-ucrurs mhd ....:_,ccared on the same lot or parcel. ntainin= one or more vnncival ,uses, · rnuned by the zone m which the prope~,' is L_~cared. STRUCTURE, TEM-PORARY. A st.,mcmre which does not have, nor is it required by *._he Unirbrm Building Code to have, a permanent artach, ment to the ground but is subject to building pe,'TaitS. STIJDIO. A loft, room, group of rooms or bu. itding in which an artist works. Ttds includes facilities for the production of photographic works (still or motion), painting, sculpture, dance, music or similar ac'fi'~qti~. A studio is often found in combination Mth a gallery, or may be an accessom' use to a rem_il business or other 1.L.~. TOWhTIOUSE. For purposes of this code, a townhouse is a sin~e-umt sn-ucmre in a row of at least three such units in which each tm.it has its own front and rear access to the outside, no umt is located over another, and each is separated ~om any other u-mt by one or more conunon fire resistant walls. Ownersixip of each unit includes ownersi-dp of an individual parcel of land benea~ the unit and usually includes a privately-owned outdoor area as well (pr/vote yard or open space). The remainder of the grounds, pr/vote streets or driveways, and recreational facilities are owned in common, sim/Iar to condo ownership. TR.&WSIENT PERSON. A temporary, lodger ';,'ho stays no longer thmn 50 day's per ','/sit. URBAN GROWT'ft AREA. gm area desigrat~ by Kit_san Cou.nw w/th/n which urban ~ow'th udi! be encommged mhd sup.r>orted with ursan izvet utilities and services. The UGAs are desi_mned to aczommodare the ne.ct rwenry years of m-bTm ~o~-d'x and ',,,511 be pe72c, dgc:aJ, ly r~'/sed as USE. q-ne pm.,-~se or acuxiw for wkich land or impro;'emenr5 are in:ende~ OC,Tasied or mmn~nec. ESE. ACCESSORY. A',~--: wh.ich is incidentai mud mbor~nate to a pnncip~ use, wh/ch is cusrommSiy found in :or_n~'don principal use, ~nd whsch is Icxmted on the same tot or parcel. (Exampl~ include pm'ate ga. rage. hobby shop. work shop. pe.'->or~ ~-~nhouse, and r:qu.ir~ off-s'~r~t parking.) USE. PRINCIPAL. The primary, or main use conducted or allowed on a lot or parcel. Accessoo' uses cannot e.,dst vdthout a principa2 use on the sa_me lot or parcel. USE, SPECIAL. A use that is not permitted "outright" but is listed in the Land Use Tables as "SBT" and approved through the Special Use Perrrfit process. Uses that are not listed at all in the Land Use Tables may also be considered for 2t-16 Intrusions into Rmqudred Setbacks - No sumcture spa[[ inu-ude into r~mr~ ~ v~d ~Iback, except ~ follows: (a) Eaves, co~s, owings, ~c~re~ ap~n~ges, firepla~s, chm~s ~d ~~ si~ my e<end no more ~ ~'o (2) f~t into ~e r~Mr< r~ y~d ~ ~tbacM ~d in no ~ s~l ~ clout ~ ~ (3) f~t :rom ~y pro~' ~ne. O) D~, piaffo~ ~d o~n ~cover~ ~rches ~e ~n~ ~5~n ~e r~ y~d ~m pro~sd~ ~ do not ex~ ~ (30) inches in hei~nt a~ve ~e fimsh~ ~de ~d ~ no clout ~ ~ (3) f~t from ~y lot l~e. (c) Fends, ff~-~ng w~is, ~eps, w~ ~d ~veways. (Ord. 4172, 1988). 21.02.190 ACCESSORY USES STRUCTURES. (a) A use or su-ucture that is incidenr, ai &nd subordinate to a principal structure or usa mhd wkich is ~orrarily found in conn~"don ;~-ith the principal str'ucu.ure or use sba. II be permirte& so long as that princi.mtl su-u~e or u.se is ~rrmr~ed to continue, or unless othemise ~-'oecLSed in O. is Or~nance. O) Accessor; s-wu:rares and uses not ~ ewmbiisked ,air2-tout a reiated prmcipai su-uc~n.n-e or use on the same prope:-ry, except C~t accessory u_ses or s'umc~es may be eslablishe~ on a lot irmmecfiateiy adjacent to and under the smme ow,'nersN= as '&e =nnciual's lot. pro~,Sded it is not separated from that lot by a street, alley or other pi~ht-.:f-w'av, and is m the same zonf.ng disui~. (c) Accessory uses or su-ucrum,.s simit be dere,,~m.ined by Cae de~Sn/fion of "Sn-uc,~e, Accessory" in BMC 21.02.070, the desigrmt/on "AC" in uhe L~nd Use Tables of this chapter, or by' Cae Director. TFpical access~U' uses and r='-uc~n.n-es include uae follow/rig: (i) R~idenfial. Garage, carport, term/s court, swimming pool/~.& wccxLshed, shop, morage sherL green.house, and z3.zeDo. (2) Conu-nerc/ai/Ind~al: Storage shed or enclosure, trash dumpsters, corn_mercia/ vekic!e parking and loading, cusromer and employ~ parking, si=mu, and related subordinate businesses or a~Jvir, ies. (Ord_.. ' ~ '~ - . -,~,_) §l fin pa.qL 1991; Ord. 4172, 1988). 21.02.200 FLAG LOTS. (a) Lot Size: (1) The minimum lot a_~,~ req. mred for flag lots is i50 percent of ',.he n:fin/mum lot size norrvma. Uy requirexl in the zoning district in wkJch the prope,'T,.' is locate& (2) L'Yne m/n/mm lot width and depth is the rmnimm-n lot w/dth and depth reflu.ired in the zoning dis-met in which the lot is located. Flag lot dimensions shall be measm-~ from the mid-point bet~'~n two opposite lot lines of the body of the flag lot. (3) For building setback purposes, the property. Line of the "flag" portion of the lot that most closely 7_,arallels the meet fi-om wb. ich the lot gains irs access,-shall be ~nsideved the front lot line and the front .v~d setback (building line) si,all ~ m~.tred fi-om ',2-mt tot tine. (S~ Fi=m.u-e 070(c) mud 070(e).) (b) Access Way: (I) Toe access -,,,'ay or d.r:vew'a;- s,h~t.tl be under the same owne:'sbJv as the hod7 cf t. he flag lot. 3~n easement shall not be as a method of prov/~ng access to the flag [ct. (2) T:.z5 iou must be v, iuh access to a pa,,'e~ an: c/e~cate,,.4 fight-of-wa?' either ; ?,-~v'.d. in~ and d~,.~4ing access way or ar~ iar a ciriveway of at lens:~ twenty (20) {mt wide e:aending ,'rom a dedi'mt~ right-of-way to the bo&; of a -~ o ~a~ IOU or ii. A p~;'are rd'eot in which abu~ng properties h. ave common ov, merslnSp. (Ord. 4172, !988). 21.02.210 SETBACKS OF ACCESSORY STRUCTURES. (a) Acce_s~ry s'wacrures shall observe the front yard setbacks r~ui=ments of the zone in which they are located. (b) Accessor?' structures in R~ident, ial zorting dis'u'/cts may be c&ns-tructed no closer thr~ (3) feet from the side or rear property line. s 21-20 L tJxat adjoin other property. No setback is m4uired if the side or rear property, line adjoins an alley. (c) Accessory, structures for the k~ping of Livestock or fowl shall conform to the reqmmments of Bremerton Mumc/pal Code, Chapter 7.08.700. (d) Accessoo' su-uzmres on adjacent lots, th,at are not attached to their prinmpal or any other structures, may be attached to each other at a side or rea. r property, line (zero-lot-line) with approval ox" a Special Use Permit and i.f desig-ned in accordance with bBC requirements for such (Ord. 4325 J1 (in part), 1991; Ord. 4172, 1988). 21.02.220 MEASURING tq'F. IGHT OF A STRUCTURE. (a) The height of a build/rig is the ver-dcal d. is',xnce above a reference datum m~are~t to t2~e h.ighest .re:tint of the coping of a flat roof or to the d~k line of a mansard roof or to the average height of the highest gable cf a pitched or hippex[ roof. The reference datum sb~! be sei,~.--~xed by either of the foilov, ing, wkich~'er ?ie!ds the ~e. ater heigEat of a braiding: (i) The elevation of the hSghest adjch,zng sidewalk or ~otmd r,x:face with.in a five-thor honzonmt dir~nce of Lhe exxe,,-icr *,'all cf 2ne building when s',:ch sidewalEk or ~ou. nd s',.u'face is not more than ten (t0) fret above uhe [o,.ve~ _%Tade. (2) 3m eievation ten (!0) i~: higher u~han the lowest _m"ade when the sidewaJ& or ~omnd sm'face desc-nbed in item i above is more On. an ten (10) f~t above lowest ~m'"ade. The 2ei=at of a stepped or te~w'aced braiding is the ma.x.imum height cf any se~mment of the braiding. ('b) Excsp~ons: Penthouse for elevators. fire walls, chimneys, and fla=ux>les, ma.;' ex~-...~_.d the height limks of the Zomng District. None of these exceptiorm to the height raga. lotions shall be used for advertising of' any k/nd. (S~ Figm-e 220.) (Ord. 4325 §1 (in part), 1991' Ord. 4172, 1988). 21.02.230 FENCES AND WALLS. (a) Fences and wa/Is stm_ll observe the follos~4ng height and setback requirements: (1) Resident/al Zones. i. NL.qximmm height sim. ii be six ii. ~D..'cimu. m height w-ithSn ~ont yard setback area shall be thr~ (3) f~t; except an open mesh cyclone type fence may not exc.,~,M a height of 42 inches. (2) Commercial Zones. i. Mmximum height shall be eight ($) feet. ii..~i.x/mttm height shall be six (6) f~t when adjacem to 3 public r/ght--of-way, or ro a residential zone. (3) Indux'~al Zone. i. Max/mum height shall be ten (10) f~t. ii. Max:imtma height shall be slx (6) f~t when adjacent to a public right-of-way, or to a resident/al zone. (b) A Sr>eciai Use Permit n:my be r~uested for higher fen:es or wa. Ils along pro.serO' iines that are designed and intended for enhan~ s,.~,~cv._rit'2,.., ~ter resident/al priva~' er other r,~q.s~ns d',ar v,i!i ~ cf ~nefit to all afl, ed prope:-'Jes. (c) Fences and walls sh~.i! not block or hinder the sight d./r',z=n:.e of tm.fflc. Ex.a~ location and design of a fence or wall is subj~ to the a?provai of ra-,e Cir';' _=.nDne~r when ,,-isibilit:y or public safe~,' is mn issue. (d) No ei~z'~z z: ele~-~ed lances si'~l be ~,'-rrdn~ wi~n the CiD' c.f Eremenon. (e) Bar~_~ ~:e or smlar wi-: prorewJve dwAces are ~-'-n'arted oniv above a height of six (6) feet an:/ si'2.il r~quire a Special Use ?e.wrdt 2-with/n or adjoimng any residenti~ zoDe. (Ord. 4225 j1 (in 72::), :99i: Ord. -t172. 1988). 21.02.240 HOME OC CU'PATION. (a) Pe-Wmrled Use. Home whe:'e perrrfirt~d, are rabject to the following limitations (1) The home oc~--upation shall be clearly subordinate to the use of the dwelling unit for residential purpo, ses; (2) The home occupa~on shall be wholly situated indoors: (3) No ~rson may be employed in the home occupation unless a resident of the dwelling trait. 21-21 determinat2en as to wixich zone(s) and through wb.2ch approval process the Urdisxed Use ,"nay be perrrdned. (c) k- the Director finds no sirmtar uses already listed, finds the proposed use to be sensitive or controversial, finds the use to have potentially adverse impacts, or is unable to arrive at a clear administrative determination, the requested use si'all be considered for approval by :.he Planning Commission through the S.~zial Use ?emait process. (Ord. 4557, .~rtended, 6/13/96)  .02.160 FRONT Y.-~R_D S. (a) Through Lots: Throug. h lots have · o (2) front property. Lines with a front yard on ch of two parallel or approximately parallet (i) Each front yard slaall be bject to the front yard setback requirements of iu zone. [ (2) The Dimmer may _m-ant A?rfirdsra-aUve Ex~ofion to the double ~ont setback r~uirement by desigrmfing one ~ontaae a Rezm~ Lot Line. orov/ded the following is in;'oived, m~2s~ r2¢ e,r2~ frontag~ cons/sis of one proper?: n. ~ne majority of the iots an4,'or stracrm-es wifi~jn the block or other being considered are ciea_riy oriented in a d/r~'~'~ion away from the side being conside~ for designation as the Rear Lot Line. (3) Orientation of the [or or r,'-ucmre sh2dl be consider~ and the pot-don of a iet facing 'dews or water2'ont may be considered the parzel's Front Lot Line, in which case the property's o~,dy street frontage could be desi_~22',am~4 its "r~,ear''. (4) .[f such an exception does not izave the written consent of ail prope:T/ owners d. ir~t/y afl,-ted and all adjoimng property, ownen, then it shall be taken to the Planning Cornm2ssion for a public hearing prior to the Commission's dec/sion. (5) The Ex~ption decision shzll be in writing, shall include a map to dearly ind/cate the extent of the exception, and sh2./l be subject to appeal in accordance *'dth tine pro~qsions of BMC 21.02.930. ¢) Comer Lots: .~i lot Imes abumg public s~eets ~e co~idered to ~ front lot lm~ ~d front y~d mtbac~ s~l apply. A ~mer tot ~ng honmge on more ~ one ~:t ~5~ We more ~ one front v~d ~, ~e dep~ of w~ch ~11 ~ dete~n~ by ~e front ~tback r~mrement of ~t zomng ~. Refer to illur~fiom in Fi~mm 070(c) for cl~2~on. (c) In~sio~ into R~mr~ Setback: S~es s~l abide by ~e r~r~ front y~d ~tbac~ except ~ follows: (I) ~v~, ~m~, amn~, bay ~dows, m~t~ apanage, firepla~s, c~'s ~d ~ma~ si~ projea not more ~ ~'o (2).f~t rata ~e ~ont y~d ~tback: (2) Front y~d ~tback r~mremenm s~l not apply to d~, plaffo~. ~d ~rch~ u~t do not ex~ ~' mch~ (30") in height a~ve ~e fimsh~ ~de; ~x~t ~ d~. ~ or encio~ ~rches, b~m~ or si~lar ~c~t~ ap~n~g~ G~t e~end more ~ uhjm' roches (30') a~ve fimsh~ ~de may proj~ not more G~ six f~t (6') into the ~ont vm-d ~back. ~eps, w~. ~d ~vewa~'s. (Ord. 432~ j! (in pax:, !991' Ord. I19Z 1989: Or~. Z172, 1988). 21.02.170 SIDE v, .-kRD ~.~ InL-~ions into R~uir~ Setbacks Req ,mr~ 7,~king s-7.~aces s22di be ,made a','aiiabie and continuously mann,ned for the park2ng of ope.able passenger automcbiles and bicycles of residents, c,~stomers, patrons and employees of the relatext land u_se and s,h~dl not be rented, leased or other~hse assigned to any other person or organization vdthout an approved joint u_~ a~ment or other City approval. No business acfiv/¢' shzdl be perm/tt~ on required park/rig spaces. (Ord. 4194 ~6, 1989; Ord.-,1' '*/_, 1988). ~ 21.02.180 t:LE .-kR YARDS. 21-19 intrusions into Recluir~.d Setbacks - No st:-~c.'azre shall intrude into rectmred rear yard setback, except as follows: (a) Eaves, comic:s, awnings, arch. itecawal appendages, firepla~s, chim.n~'s mad permitted signs may emend no more than two (2) feet into the required re, ar yard area setback, and in no ca.se st're, fl be closer than t.h.r~ (3) feet from any prope,wy hne. ('b) D~ks, platforms and open mncover~ porches are. permitted within the rear yard area, pro~'ided they do not exc~ thirty (30) inches in height above the finished grade and are no closer than th.r~ (3) fei from any lot line. (c) Fences, fr~-standing walls, steps, walks and d.riveways. (Ord. 4172, 1988). 21.02.190 ACCESSORY USES .ah-I) STRU CTU'RES. (a) A ,use or ramcrare r. Mt is incidental mad subordinate to a principal srruc'-:are or u_se and wkich is c'astornarily found in conn,'lion ;v/r2a ;2ne principal structure or use shall be ~.~-:mirte,4. so long as r. Mt prmcipa/ s-u'u~are or ~ is :>e.-'-rm,xed to continue, or u.n/ess orSaem-ise ~e:LSe~ in ~.is Ordinance. ¢) Acr2ssor?' s',~'-uc'mres and uses may :-,or ~ es-~abiisheci without a related ?mcipa~ sr~-x~..are or use on the same properu', except ri'at ac:'essor:' uses or s'~-'acmres may be es-'~ablished on a lot i..m_m~atei;' adja~nt to and under floe same ox~,-nersbJ: as the principal's lot, pro'Aded ir is not scoa,re?ed from Chat lot by a sa'~t, alley or other .~ght-:£-wa?', and is m the same zoning c[ist,--i~. (c) Accessory. uses or strucm_ms s,haJ, l be d. ete,.'-:-r, Jned by Ce de~Snition of 'Smlc,'ure, Ac:essor:'~ in BMC 21.02.070, the designation "AC' in Cae r~nd Use Tables of ti'tis chapter, or bv Cae Director. Tx-pical accessoD' uses and s--,.nxcx~, es include b~e following: (t) R~idential. Garage, car~rt, rerm/s court, sw/mming pooVspa, woocLsh~:[ shop, storage shez[, greenhouse, and (2) C o rn.rne r~al/Industh al: Storage shed or enclosure, trash dumpsters, corarnercial vekicle parking and loading, c'astomer and employee park/ng, signs, and related subordinate buiinesses or activities. -,1 ~_. 1988). (Ord. 4325 §1 (in part). 1991; Ord. ' -'~ 21.02.200 FLAG LOTS. (a) Lot Size: (1) The minimum lot ar,-,..a reqmred for flag lots is 150 percent of the minimum lot size normally re,q. uired in the zoning ciJstr/ct in wkich the prope~,' is located. (2) T'ne mdmmum Lot width and depth is the mimmu.m tot widtiq and depth required in the zoning ~s',.rict in which the lot is located. Flag lot dime~iora shall be measured from the mid-point berw~n two opposite lot lines of the body of the flag lot. (3) For building setback purposes, the property Line of the 'flag~ portion of the lot that most closely .r~-allels the slz-eet from wkich the lot ga/m its across, shall be considered the front tot line and fine 5'ont yard sett:mck (building line) si",a/i be meas'm-~ from LMt line. (S~ Fi~e 070(c) and 070(e).) (b) Access Way: (1) T'ne ac2~ss ,~y or cirivev,-ay s~',2.iI be render uhe same o,a'ne.--skip as t..he boriS' of the fia~ lot. An ~emsn: si,X! not be pe:--'~irted as a me,od of providsng ac:ess m the body of a flag (2) ~,::~ iou mua be provid~ -,~it2~ access to a paved '-and de~./.cared r/ght-of-way either by: i. Pro~i&/n7 and d~,~.4_ing acc2ss way or ar.ea for a d~vewav o~ ar rwen9' (20) feet v, ide :xxen~ng from a dedicated fight--of-way ro the body cf a Sag lot; or ii. A pd;'a:e r~r=t in which the abu~ng prope:-'Jes have zam. rnon ownership. (Ore. 4172. 21.02.210 SETBACKS OF ACCESSORY STRUCTIS'RES. (a) AccessoD' sa-ucmm~ shall observe t_he fi.oat yard setbacks reqmremenLs of the zone in which th~, are locate. (b) Accessory. reucmres in Residential zoning districLs may be constructed no closer ~hnn thr~ (.3) f~t from the side or rear properly, lines 21-2© B. Corner Lots Ail lot lines abutting public streets are considered ts be front lot lines and front yard setbacks shall apply. A corner lot having frontage on more than one street will have more than one front yard area, the depths of which will be determined by the front setback requirement of that zoning district. Refer to the illustrations in Figures III-2 and Iii-3 for further clarification. C. Intrusions into Required Setbacks Structures shall abide by the required front yard setbacks except as follows: Eaves, cornices, awnings, bay windows, architectural appendages, fireplaces, chimneys and permitted signs may project not more than two (2) feet into the front yard setback. o Front yard setback requirements shall not apply to decks, platforms, and porches that do not exceed thirty (30) inches in height above the finished grade; except that raised decks, high or enclosed porches, balconies or similar architectural appendages that extend more than tkirty inches above finished grade may project nc~ more than six (6) feet into the front yard setback. Fences, free-standing walls, steps~ walks, and driveways. Section 2: SIDE YARDS A. Intrusions into Required Setbacks Structures shall abide by the required side yard setbacks except as follows: Eaves, cornices, awnings, architectural appendages, fireplaces, chimneys, and permitted signs may project not more than two (2) feet into the side yard setback, provided that such extensions may extend no closer than three (3) feet away from the side property line; o Steps, decks, platforms and porches, if they do not exceed thirty (30) inches in height above the finished Grade, may extend into the side yard no closer than three (3) feet from the property line; Fences, free-standing walls, walks, walkway steps, and driveways. IV-2 666~, ~ I Nflr ~c x' NOTICE OF PUBLIC I~EARING Bremerton City Council The Bremerton City Council will conduct a public hearing on the following item during its regular meeting on Wednesday, July 28, 1999, which will begin at 6:00 PM in the City Council Chambers of the Bremerton City Hall, 239 4th Street, Bremerton, WA. PL99-0037 - Appeal of an Administrative Interpretation of a side yard setback at 2111 Madrona Point Drive in a single-family residential (SF-3) zoning district. Appellant: Paul Scheyer All interested persons may appear and provide testimony on the matter. The Department of Economic and Community Development (ECD), located at 286 4th Street, Bremertor~ WA 98337, will receive written comments and other exhibits on the above item up to 5:00 PM on the day of heating. Written comments and other exhibits 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 ECD. Staff reports will be available by 5:00PM on July 22, 1999. Call James Coombes at (360) 478-5845 for additional information.