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Home My WebLink About01/22/97 AGENDABREMERTON CITY COUNCIL 239 4TH STREET BREMERTON, WA 98337 CITY COUNCIL AGENDA JANUARY 22, 1997 me CALL TO ORDER - 5:30 P.M. A. Pledge Of Allegiance B. 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 - January 8, 1997 #AB97-011 3. CLAIMS/CHECK REGISTERS 4. COUNCIL MEMBER REPORTS 5. MAYORtS REPORT 6. PUBLIC RECOGNITION -- (Comments Limited to 3 Minutes) NEW BUSINESS A. 1997 Community Development Block Grant (CDBG) Final Award Allocation B. Contract for Supplemental Law Enforcement Services with the Bremerton Housing Authority Bid Award to Stellar Construction for Public Works & Utilities Operations Center Warehouse/Storage Building De Labor Agreement By and Between the City of Bremerton and the Bremerton Police Management Association #AB97-013 ~ #AB97-014 ~P6~? ORDINANCES A. Ordinance #4582 (Second Reading) Authorizing the Issue of a $1,250,000 Tax Anticipation Note, Accepting The Purchase Offer Of Seafirst Bank #AB97-009 ~'~ ~' 1. SUBJECT: AGENDA BILL BREMERTON CITY COUNCIL ~{INUTES - JANUARY 8, 1'997 FOR AGEND~ OF: ORIGINATING DEPT: ORIGINATOR: DATE SUBMITTED: 1-22-97 l-I 6-q7 2. CL$~_RANCES: (comment on back if necessary) 3. EXHIBITS: ENDORSEMENT__ !NFOPd4ATION MAYOR A-oPROVED BY COIINCI~ P~~~MITTkL: COUNCIL PRESIDENT 4. S~Y STATESfENT AND REQUIREMENT FOR'COUNCIL ACTION: 8. ~ECO~ENDATI,0~: 9. RESPONSIBLE OFFICi~: ENFORCEMENT OFFICIAJ~: EXPIP~ATION DATE: REVIEW DATE: PULLED TABLED COUNCIL DIRECTIVE: !0. NOTICE OF ACTION APPROVED DISAPPROVED DATE: 11. AGENDA'KILL ~ENDED TAPE #1432 UNAPPROVED DRAFT CITY COUNCIL MEETING MINUTES JANUARY 8, 1997 The regular meeting of the City Council of the City of Bremerton was called to order in the City Council Chambers, 239 4th Street, Bremerton, Washington, Wednesday, January 8, 1997, at 5:30 P.M., with Council President David Farr presiding. Council members present were Bob Winters, Carlos Montgomery, Sherril Huff-Menees, Richard Neville, Lon Overson, John Law, Cecil McConnell, and A1 Colvin. Also present were City Attorney Ian Sievers and Deputy City Clerk Paula Johnston. The meeting opened with the Pledge of Allegiance led by Council President Law and Invocation given by Reverend Bill Wambsganss of West Side Baptist Church. President Law announced Council had just concluded an Executive Session where they discussed "Labor Negotiations". MAYOR~8 REPORT Mayor Lynn Eorton reported she will be attending a welcoming dinner for Admiral Clemens this evening in Seattle. As an update to the storm damage, she was pleased to report the Warren Avenue Bridge was opened much sooner than originally identified due to the quick response by the State to bring in a contractor to assess the damage and remedy the problem. She thanked the State of Washington and the contractors for doing an admirable job in getting the bridge back in service, she also thanked the National Guard for providing traffic enforcement during the closure of the bridge was closed, and City staff for their effort in coordinating alternate routes. As far as City damage, road washouts and water damage to the Municipal Court Room and several other offices suffered from the storm. She anticipates the cost to the City will be approximately $150,000 to cover the costs of roadway repairs and other costs incurred due to storm related conditions. She noted that cost is minor compared to the rest of Kitsap County and the City of Bremerton. The totals for damage incurred from the storm in the city of Bremerton exceeds $10 million. She suspects that total may go upward to $15 million. Damage assessments are being gathered County-wide so that they can be forwarded to President Clinton with the hope that he will sign the Emergency Declaration, which will provide FEMA funding for all the governments as well for those who had damages but were uninsured. She expressed her appreciation to City staff, particularly Assistant Fire Chief A1 Duke, Bob Tulp, and Riley Thompson. Mayor Horton read a Proclamation recognizing January 20, 1997 as Martin Luther King Jr., Day in the City of Bremerton. Reverend Clevelan4 Williams, Ebenezer AME Church, accepted the proclamation TAPE #1432 city Council Reg. Mtg. Minutes January 8, 1997 Page 2 of 17 and invited everyone to celebrate this day at the Kitsap Pavilion 10:30 - 1:00 P.M. (NOTE: Mayor Horton comments on Agenda Item 7A were made during her Report; however, they are listed under that item.) ELECTION OF CITY COUNCIL OFFICERS President Law opened nominations for City Council President/Mayor Pro Tem: Mr. Montgomery nominated David Farr. Mr. Winters nominated John Law. President Law closed the nominations. Vote: David Farr - 5 votes John Law - 4 votes. David Farr was elected City Council President/Mayor Pro Tem. Mr. Montgomery called for a roll call of votes: Paula Johnston, Deputy City Clerk, read the following voting record: Votes for David Farr: Huff-Menees, Overson, Neville, Fart, Montgomery. Votes for Mr. Law: Winters, Law, McConnell, Colvin. Mr. Law thanked Councilman Richard Neville for always being available to fill in as President in his absence and those Council members that came through whenever he asked for help or advice. He extended a special "thank you" to Mrs. Erhart for always being supportive during his year as President. Presi4ent Farr thanked Councilman Law for putting in a lot of effort in his role as City Council President and he will be counting on him in the turn-over of the Presidency. President Fart opened nominations for City Council Vice President: Mr. Winters nominated Cecil McConnell. Mrs. Huff-Menees nominated Richard Neville. President Fart closed the nominations. Vote: Cecil McConnell - 4 votes Richard Neville - 5 votes. Richard Neville was elected Council Vice President. Mr. Montgomery called for a roll call of votes: Paula Johnston, Deputy City Clerk, read the following voting record: Votes for Richard Neville: Colvin, Farr, Montgomery, Huff-Menees, Neville. Votes for Mr. McConnell: Law, Overson, McConnell, Winters. CONSENT AGENDA A. Minutes - December 18, 1996 #AB97-001 3 #0768 #0793 TAPE #1432 City Council Reg. Mtg. Minutes January 8, 1997 Page 3 of 17 B. Minutes - December 23, 1996 #AB97-002 C. Minutes - December 30, 1996 #AB97-003 M/S/C(Neville/Montgomery) to approve Consent Agenda as presented. Vote on Motion: In Favor: Montgomery, Huff-Menees, Neville, Farr, Overson, McConnell, Law, Colvin Abstain: Winters Motion carried. 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. M/S/C/U(Colvin/Montgomery) on January 8, 1997, the Council does approve for payment those vouchers included and further described as follows: Regular Payroll for the period ending 12/31/96, in the amount of $876,298.71. COUNCIL MEMBER REPORTS Mr. Colvin wished everyone "Happy New Year". He commended Mayor Horton for being so alert during the winter crisis. He thanked Don Atkinson and KITZ for their reporting timely news bulletins during the recent storm. He complimented the Warren Avenue Bridge repair crew for making it possible to open the bridge earlier than anticipated. He announced at the Council meeting on January 15 Jim and Lillian Walker, who were selected to receive the "Citizen of the Century", will be presented a Certificate Of Appreciation. He was personally aware that the Walkers had contributed more than 100 years (combined) of public service. Mr. M¢Connell announced District #2 will not hold a Neighborhood Meeting in January. He referenced several letters being published in The Sun concerning parking on City right-of-way and blaming Senator Betti Sheldon for the recent action by the City to remove vehicle parking off of planting strips. He pointed out the legislation addressing liability for sidewalks sponsored by Senator Sheldon did not have anything to do the removal of parking on planting strips. The change she sponsored in the law was to assign the responsiblity for the damage to the sidewalk and any other structure resulting from vehicles parking on the planting strip. That legislation was brought about as a result of a lawsuit against the City of Tacoma and the Washington State Supreme Court's decision that if the city did not enforce its ordinances they would be responsible for any and all damages to curbs, sidewalks, etc. Prior to passage of that legislation, cities were holding the TAPE #1432 City Council Reg. Mtg. Minutes January 8, 1997 Page 4 of 17 abutting property owner responsible. He emphasized what Senator sheldon did was good for the property owners...it removed that responsiblity from the property owner and put it back on the City. He believes the people writing letters to the editor on this issue may have been miss informed. The laws governing parking on the right-of-way portion between the traveled portion of the street and the property line is covered in other RCW's, not the one people have been referencing in their letters. Mr. Law stated it was possible that those writing letters on the removal of parking on planting strips may not be aware of all the facts involved. He announced the next District #3 Neighborhood Meeting will be held January 21, 7:00 P.M., at the Senior Center. The program for that meeting will included talking about all that has happened over the past two months. Mr. Neville announced the following meetings: (1) A public meeting with residents of the Park Avenue area will be held January 14, 6:30 - 8:00 P.M., at the Kitsap Community Action Program building located at 1201 Park Avenue. (2) A public meeting will be held on January 21, at Memorial Lutheran Church located at 10th and Veneta. This is a follow up meeting to the one held in October where the issue of Parking on planting strips was discussed. (3) The Ferry Advisory Board will meet January 27, 1997, 6:30 - 8:30 P.M., in the City Council Chambers, which will be televised on Channel 12. Mr. Neville thanked the Boy Scouts for the effort they made delivering coffee and donuts to members of the National Guard, who were assisting with traffic control when the Warren Avenue Bridge was closed. He was amazed at the damage to trees along Highway 16 between Gorst and Tacoma, which was caused by the recent snow and ice storm. Seeing that damage, he recalled how fortunate the City was to have Bill McKinney, City Forester, who spearheaded the removal of trees along the Old Belfair Highway before something like the last storm could devastate that area. Lastly, he thanked John Law for his leadership as City Council president this past year...A JOB WELL DONE! Mrs. Huff-Menees congratulated President Farr and Vice President Neville on their being elected and a note of appreciation to Mr. Law. The position of City Council President is one that requires a great deal of time and effort, much of which goes unseen by other members of the Council. In many ways, Mr. Law set some standards that we can all pay close attention. Today she attended the Kitsap County Executive Council where a lengthy presentation was made by TAPE #1432 City Council Reg. Mtg. Minutes January 8, 1997 Page 5 of 17 Phyllis Mann, Director of the Department of Emergency Management Services for Kitsap County. In her report, Ms. Mann mentioned several times that we, as a community, deserve to feel very good about the way the City, County, Kitsap Transit and a number of community groups responded to recent emergencies. All of the agencies affected came together and formulated an alternate routing system that worked when the Warren Avenue Bridge was closed, which was a remarkable feat considering the short time frame to accomplish that task. The cooperation with which it was completed is what made it such a success, but also an appreciation to the citizens for responding in the manner they did when faced with the bridge closure. The National Guard was recognized at the morning meeting for their participation assisting the community. The community as a whole could feel very good about the way responses were made to emergency situations. Mr. Montqomer¥ stated his daughter and son-in-law were visiting this area from Montana during the recent storm and did not appreciate the inconveniences encountered due to our unpreparedness. He commended the City Street Department for the effort they made to keep the streets passable and making sure the storm drains were working properly to prevent flooding. He also commended the City's Fire Department and Police Department for their efforts helping the citizens during the storm as well as neighbors helping each other. He complimented The Sun on their reporting during the week of the storm even though delivery of the paper was not always possible in all areas due to snow and icy conditions. However, in the January 6 edition of The Sun, a picture of Kitsap County Commission Phil Best looking over the damage to the Warren Avenue Bridge was printed and the article contained some comments about the damage situation, but also talked about a prior incident involving him and his use of the Internet. Mr. Montgomery felt the latter comments were totally inappropriate for The Sun to report as part of that news article and that Mr. Best should not be continually bashed for a mistake that he acknowledged he made. He questioned is The Sun going to continue such practice as long as Mr. Best is in office? If so, then why didn't they report on actions by other Commissioners for some of the things they did? Mr. Montgomery and Mayor Horton viewed the Warren Avenue Bridge damage on January 2, and was amazed at the amount of dirt that had been moved from the damage area. Mr. Winters stated in January 1996 he made a New Year's resolution to be more active on Council and become better informed on what could help and better the City of Bremerton, which he did. Since this will be his last year on Council, he feels strongly that certain things need to be done in 1997, and he will be more vocal to the public so that they clearly understand that in City Hall Council members are elected by the public. The following issues TAPE #1432 city Council Reg. Mtg. Minutes January 8, 1997 Page 6 of 17 are "burning desires" for him to pursue: (1) adoption of an ordinance addressing the Telecommunications Act; (2) complete negotiations on TCI Cable's Franchise Agreement; (3) truly telling the public exactly funding source for the Sinclair Land Project; (4) Kitsap Lake's future, i.e. cleanliness and its vegetation condition. He was saddened to report the recent passing of his uncle, Dick Winters. Mr. Fart congratulated Mr. Winters on his ambitious hopes for 1997. He commended all those involved with handling problems related to the recent snow/ice storm, particularly the coordination of moving traffic over the Manette Bridge with the closure of the Warren Avenue Bridge. He expressed condolences to the businesses and individuals in the City that suffered losses due to the storm. PUBLIC RECOGNITION Kal Leitchman, Bremerton resident, acknowledged he was one of those who wrote letters to the newspaper editor regarding the City's action to remove parking on planting strips. He was still not satisfied with the City's response to his earlier inquiry requesting copies of the documentation relating to a lawsuit that involved an injury related to an accident on a planting strip resulting in a settlement of $18,000 to the claimant. The letter he received from the City's Risk Manager stated he would have to contact the City Attorney to obtain copies of the lawsuit. Mr. Leitchman questioned why should he have to contact Mr. Sievers, the City Attorney, when the Risk Manager could have obtained the information and provided it to him. Again, he requested the City provide him with that documentation. He then read a portion of the 14th Amendment to the United States Constitution and referenced its application to what he believed was a "taking" from property owners, if the City prohibits parking on planting strips. President Fart assured Mr. Leichtman that Mr. Sievers was aware of the information he wished to receive. Ian Sievers, City Attorney, stated he would see that Mr. Leitchman received the requested documentation. Ed Pietras, representing the Martin Luther King Scholarship Fund, talked about the selection of Jim and Lillian Walker as the recipients of the "Citizen of the Century" Award. He extended an open invitation to the public to attend the Martin Luther King Jr., Scholarship Fund Luncheon on January 19, 1997, at the Kitsap Golf and Country Club, 1:30 P.M. Tickets for this event are available at a cost of $18.00 pre-sale and $20.00 at the door. Roy M¢Innis, Bremerton resident, stated most of the comments he made during Council meetings in 1996, were complaints and he hopes to approach 1997 with a more positive look at what the City is doing. He wished everyone a Happy New Year. Out of all of the TAPE #1432 City Council Reg. Mtg. Minutes January 8, 1997 Page 7 of 17 effort given by lots of people during the recent snow storm, he singled out Public Works and Utilities employee Donald Sefton to commend for his going out of his way to assist the Sinclair Missionary Baptist Church with a problem that involved flooding on church property. 7A - RESOLUTION NO. 2582, REGARDING FINANCING OF BREMERTON HOUSING AUTHORITY NEW HOUSING PROJECTt ~AB97-004 The Bremerton Housing Authority has responded to the city's request to develop new, owner-occupied, moderately priced housing units. The project identified involves the City of Bremerton signing a contingent loan agreement for financing. This resolution approves the proposal in principle and authorizes the Mayor to sign the contingent loan agreement when requested by the Bremerton Housing Authority. Mayor Lynn Horton stated this project is clearly a new role potentially for the City of Bremerton to act as a backup guarantor for the Bremerton Housing Authority's bond to develop 160 single family owner/occupied homes. Over the last several years, the City has identified one of the main issues of importance is to change the demographic of 60% non-owner/occupied housing to something more in line with a more economically healthy community. Not only is owner occupancy good for the City, it helps people get on an economic escalator and if you look at the fact the City of Bremerton has a population comprised of 50% iow income, that is another major goal that the City has been trying to change over the past several years. The City has been looking at economic development to get people into jobs, we do have good educational systems but we need a greater diversification of job opportunities at all economic levels. In terms of economic dollars to the City, there will be a one time tax advantage in the area of $600,000 that will be coming to the City through construction fees. It also means in excess of $70,000 per year in property taxes. This is an issue that is clearly a major policy issue for the Council to debate and it is her hope they will give their approval. One of the things that makes this proposal attractive to the City, Housing Authority and the developer, is that the City has a First Time Home Buyer Program where over the last year approximately $100,000 in Block Grant funds were offered to the community to act as down payment assistance. As a result of the sale of each unit, the Housing Authority and the City of Bremerton will receive some sort of a profit margin and the City's intention is to roll those funds back into more housing, i.e. down payment assistance. She realizes there is a lot of neighborhood concern as to what 130 housing units would do to the Almira Drive neighborhood, but the property is already zoned so that someone could, at this moment, build 400 iow income rental units. That kind of project would not provide the City with as great a tax base, could create other difficulties and TAPE #1432 City Council Reg. Mtg. Minutes January 8, 1997 Page 8 of 17 it does not help the City achieve the goals that have been set out in trying to change the demographics in homeowner occupancy. She realizes this proposal may be a difficult vote for some members of the council, but she feels strongly that the proposal is a solid project. The Bremerton Housing Authority is very supportive of the project and will be conducting a market analysis to make sure that there is a market for this project before they move forward. If the City is not willing to stand up and say we'll support our principle goals, then maybe we need to re-evaluate what is thought to be the goals of the City. She urged the Council to think seriously about this issue and to vote yes. Rich Hanna, Treasurer, explained the project is a residential real estate development that would consist of 130 units of housing on approximately 10 acres. He noted the City's goal is to promote owner occupied housing at affordable rates within the City; however, this proposal is a project of the Bremerton Housing Authority. The Housing Authority is in the process of and will continue to review the financial viability of the project and it is there intention, based on discussions with the City, to go forward with the project only if it makes sound financial sense and is financially viable. The City's role, as proposed, is to provide the Housing Authority with a credit enhancement through a contingent loan agreement. This would mean the City will provide an additional level of assurance to the bond holders, who would lend money to finance the project. The financial analysis that has been conducted on the project indicates that it does make sense even if it does not sell out, but certainly the intention is to foster owner occupied housing. The project can be financially successful either through rental operation or sales. It would appear the project would comfortably generate adequate income so that the City's role would not be called upon to contribute financial assets. Should that be the case, it would be in the nature of a loan where the City would lend money to the Housing Authority in the amount necessary over and above project income from sales or rent so that the bond payments would be met in a timely manner. The city would be reimbursed at a later date as income from the property was in excess of later bond payments. Merrill Wallace, Executive Director Bremerton Housing Authority, stated the project has been presented quite well by Mayor Horton and Mr. Hanna and he would be available to answer any questions. Gene Kenne4¥, long time resident and Bremerton businessman, stated he has seen a number of projects proposed for the subject site, but none have been successful in their attempt to develop the site. He was of the impression that either the wrong individuals were trying to develop the property and/or it was the wrong time for such a development. Now, he believes this is a good project as far as its TAPE #1432 City Council Reg. Mtg. Minutes January 8, 1997 Page 9 of 17 structure in developing single family residences at what he considers a moderate level of cost to the homeowner, but also a very quality group of people that incorporates two local entities and two developers, who have a good track record. He believes the proposed project is an excellent use for the subject site and a fascinating and positive approach to fill a need in the housing market place. Eliz&~eth Buell, Bremerton resident, asked if the site was level, what is located behind the site, the proposed height of the structures and their sale price? Mr. Winters questioned if there was a bidding process used to find the developer? Mr. ~alla~e stated no, basically Cobalt, the developer, brought their proposal to the Housing Authority and the City. Originally, the subject site (20 acres) was proposed to be used for 360 units of rental housing. Cobalt came in with the term "work force housing" that is used in other areas and is a home ownership concept, which is something the Housing Authority had not seen before. At that time, the proposal was reduced from 360 units down to a lesser numbers. Members of the Housing Authority felt developing 260 home ownership units might be more of a risk than they wanted to take, so they asked that the property be divided into two phases with Phase I being 130 units. This would basically be a "turn key" project where the specifications will be set up and agreed to beforehand, i e., price of the units. Cobalt and their builders will build the project for a particular price and if it meets the Housing Authorities specifications they will accept the project, which they will then own and in turn will sell it out over a period of time. Mr. Winters questioned if the $9,986,500 to purchase the project was derived by Cobalt as being the cost per square foot? Mr. Wallace explained negotiations were still underway with Cobalt, but they have taken steps to determine if there is a market and if the pricing is correct for an average of $90,000 per home. Mr. Overson acknowledged the data provided; however, he does not support the project because it does not meet the City's goal to reduce the number of rentals or increase the number of home ownerships, and subject neighborhood is already 50% owner occupied. These kinds of projects are needed in areas of the City where there are problems. He pointed out two privately funded projects proposed for the site did not succeed. His major concern has to do with data from the trends that are happening in Kitsap County, i.e. jobs are being eliminated, homes currently on the market for sale are not selling, the Navy is building hundreds of new units for military personnel, etc.. He felt it was unfair to the taxpayers to put such a burden on them. TAPE #1432 City Council Reg. Mtg. Minutes January 8, 1997 Page 10 of 17 Mrs. Huff-Menees stated she disagreed with Councilman Overson and was delighted with the proposal in its complete concept. She believes it does meet the city's goals, particularly after listening to a presentation by the Health District on the demographics of the County, its growth rate and projected growth rate. This project is exactly what is needed to meet that type of growth. From the time she joined the Council and long before that, an identified deficiency in the City was the lack of homeownership and the high percentage of rentals that present all kinds of problems for law enforcement, health and property management. An added benefit is to provide homeownership to an income segment of the population that current is not met. She would much prefer to have an opportunity that presents homeownership than more apartment rentals. Many times it has been identified by the Navy, Congressman Norm Dicks and people across the Sound, who look to this area for possible residential opportunities, that this is the type of thing they are looking for. She believes the design of the proposed project is excellent and one that is a positive addition to the Almira Drive neighborhood and one she would like to see developed in other areas of the City. Although there is a certain amount of risk, she believes the City must be willing to do what it can to make improvements. Mr. McConnell asked the City Treasurer the highest bond rating allowed for the City? Mr. H&nn& stated presently the City has an A-Rating. The highest rating on bonds is "AAA", which is not doable by a city the size of Bremerton anywhere in the Country. Mr. McConnell asked if this proposal is approved, what would it do to the city's A-rating? Mr. Hanna stated it is impossible to predict all possible future scenarios. He has discussed at length with the city's bankers and representatives of Moody's Investor Service the affect, if any, of entering into the contingent loan agreement. Neither he nor the Mayor would be advocating the project if it were not so that it will have no adverse affect on the City's bond rating. Mr. M~Connell asked if it would affect the bonding capabilities of the downtown project? Mr. Hanna stated no, the contingent loan agreement has no affect on the city's statutory limitation of indebtedness, which is another indicator that is reflective that the possibility of this transaction impacting the city in any significant financial way is quite remote. Mr. M~Connell referenced a section in the agreement that had to do with the City gaining significant cash flow by purchasing the town homes at an average cost of $76,050 and then selling them on the average of approximately $90,000. That particular statement makes him believe the city is going into the real estate business. Mr. Hanna stated that will be the role of the Housing Authority as described in the documentation. The documentation provided to Council is a proforma, not a contract, due to the fact negotiations have not been completed. What it does contemplate is as the developer TAPE #1432 City Council Reg. Mtg. Minutes January 8, 1997 Page 11 of 17 completes the project and it is turned over to the Housing Authority, the developer would be compensated at the $76,050 per unit and the average sale price of the units would be $90,000. The differences between those two costs would be shared by the three parties included in the agreement; however, to what proportions has not yet been determined. Mr. McConnell questioned how many bonds are currently outstanding where the City has guaranteed or is responsible for repayment? Mr. Hanna explained at this point of time the City has no contingent loan agreements or any sort of agreement whereby the City has guaranteed any other entities. Mr. McConnell questioned not even the Admiral Theater? Mr. Hanna pointed out that project is secured only by the real property...there is no recourse back to the General Fund or any other financial resources of the city. Mr. McConnell stated he could not support this proposal because it would place an additional burden on the tax paying citizens. He believed if it was a ,'positive deal" private investors would be jumping at the chance to get involved. Mr. Law questioned if the houses are not sold or rented, what fund will make up the bond payment? Mr. Hanna stated if the project does not general adequate income to make the debt service, the city would step up and provide that capital. Mr. Law stated he could not support the project. Mr. Colvin asked Mr. Wallace to explain the objective of this project. Mr. Wallace stated it is to provide the community with home ownership for 60% of median income. Currently, rental housing is available to the citizens in that income bracket. It is his belief that new employees will be coming into the area from other areas that are use to 0-lot lines smaller housing. Mr. Colvin questioned for clarification if the homes did not sell would the city be financially responsible? Mr. Wallace explained the City would be responsible for loan funds for the cash flow. He stressed this project is built to sell the units; however, it also has a proforma showing that if the units are not sold they can be rented during that period of time. The Housing Authority has gone through exhaustive discussions over the pros and cons of the project and the Housing Authority Board does support the project. Mr. Colvin stated this project would give people the opportunity for homeownership, who are presently renting properties. Mr. Wallace stated yes, people paying similar rents could actually become homeowners. Mr. Colvin stated he could understand opposition from people, who have vacant rental properties. He had mixed emotions about further obligating the city, but it has not been shown to him that the city will be adversely affected. Mr. Montgomery pointed out the Department of Navy have instituted a new program where members of the military are given the choice TAPE #1432 City Council Reg. Mtg. Minutes January 8, 1997 Page 12 of 17 for "home port" on the east and west coasts. He wished that he had had this type of opportunity and assistance to buy his first home when he was a young sailor. He believes this project will be an asset to the entire City when completed. He is a firm believer that we have to take a gamble once in awhile and you can't always bet on a sure thing, and he will support this project. Mr. ~eville stated we set out a task to the Bremerton Housing Authority to find housing in Bremerton and the Growth Management Act also directs in-filling properties inside Bremerton boundaries. The Housing Authority chose this plan and after doing their homework have shown that it gives a young couple the opportunity to become homeowners. He pointed out even in Bremerton where houses are more affordable than in the County homes sell for over $90,000 and on up and new automobiles cost $30,000+. It is difficult for him to understand how young families get a foothold and actually own "a piece of the rock". He believes the downsizing of employment in this area is only a temporary phase, but the creation of the Sinclair Landing project is projected to bring in new jobs and people. And, with Puget Sound naval Shipyard's nuclear capabilities it should be secure well into the future as will the City of Bremerton. TAPE #1433 Mr. Neville stressed we have to look after our future now and that means giving people the opportunity for the first step into homeownership. In the event the units do not sell, the plan is in place allowing them to be rented; and the annual debt service is $625,000, not the total $9 million. He believes the site is a good location where people can become homeowners with a view of the Olympic Mountains. He requested staff to display the conceptual design of the project. He pointed out one of the features of the design that he particularly liked was locating garages in the back of the residences with alley access. He questioned if the City will have the opportunity to review the contingency loan agreement, since the one in the documentation was for the County? Slevers, city Attorney, stated he had a concern whether the proposed Resolution should be the final Council action on the project. Usually, the Council likes to review final documents and this is a little internally inconsistent in that the first "Resolve" says in principle they agree with the plan, but in the "Further Resolve" it says the Mayor is authorized to sign documents that are apparently still under negotiations. The Director of Community Development commented to him that it was to authorize the Mayor to continue negotiating; therefore, he recommended striking the wording giving the Mayor the final authorization, which would allow Council to then have the final decision on the documents for this project. Mr. H&nna pointed out the contingent loan agreement contained in Council's documentation was not offered as a draft /3 TAPE #1433 City Council Reg. Mtg. Minutes January 8, 1997 Page 13 of 17 document to be entered into by the City. It was simply illustrative of the type of loan arrangement that is being contemplated. This type of agreement is new to the City, but not new to the County or other cities throughout the state. In answer to a question raised by Councilman Colvin about the risk being assumed by the City should the project be approved by Council, the city intends to make a condition of the Housing Authority's acceptance of the project from the developer that 10% of the units be sold prior to their acceptance. Therefore, of the total 130 units, 13 would be sold prior to the Housing Authority accepting the project, and 95% of the units would be leased out. That clearly does not mean there is no financial risk, there is always an element of risk, but it does not mean the City is taking over the mortgage payments on a 130 unit complex that might be sitting empty. Mr. Colvin asked the City Attorney what risks have not been addressed at this point? Mr. Sievers noted there is financial risk and Mr. Hanna is in the best position to discuss that aspect with Council and is one reason for looking at the contingency, and what is the City guaranteeing, what can the City look to from the Housing Authority for pay back if the City is required to meet some of the debt service. The second reason to see some final documents is what is the City's program or public purpose in providing this guarantee. He felt the public purpose would be to provide affordable first time owner's housing, thereby increasing housing in the City. That may depend on a large degree on what the rent- to-own program looks like. Mrs. ~uff-Menees questioned for clarification if the City Attorney was recommending striking the final paragraph in the proposed Resolution and requiring the final documents come back to Council for approval? Mr. Sievers stated that would be required, if the final paragraph was deleted, or as an alternative the word "sign" could be changed to "negotiate" in the final Resolve paragraph. Norm M~Lauqhlin, Executive Director Kitsap County Housing Authority, noted his organization has operated similar programs as that proposed. Currently, the Viking Crest Condominiums in Poulsbo has a County guaranty and 40 units out of 120 have been sold. They feel there is a great need for this type of housing in Kitsap County and that the City has other methods of assessing the risk since the city has its homeownership program available and effectively lowers the cost of the units by offering a subsidy, which when the units are resold is recaptured. Kitsap County has guaranteed other projects similar to the proposed project and there have been no problems. The issues that Mr. Overson made regarding the trends, which they publish, probably deserves some attention. The City of Bremerton has been losing population and an attractive property like what is being proposed will attract people back to the City and will add to its tax base. It is true jobs have been #0430 TAPE #1433 city Council Reg. Mtg. Minutes January 8, 1997 Page 14 of 17 lost in Kitsap County over the past year; however the Economic Development Council is trying to diversify the economy and he believes there will be results from their effort as well as the Sinclair landing project. Mr. Montqomery pointed out trends have indicated the attractiveness of Bremerton to people coming from King County based on the fact housing costs are higher in that area. Mr. Winters asked the date of repayment? Mr. Hanna stated what is contemplated is a financing mechanism that will allow prepayment at any time. To the extent the units are not pre-sold during construction, they would be purchased from the developer as described by the Housing Authority. the principle on the debt would then be paid as each individual unit is sold and the proforma is drawn up around a sell out period of 60 months. M/S/C(Montgomery/Huff-Menees) to adopt Resolution No. 2582, with a modification to the last paragraph striking the word "sign" and changing it to "negotiate" President Fart stated he wholeheartedly supports this proposal in that it emphasizes encouraging in-fill construction of new housing within the City thereby bringing in population to the City, which will increase the tax base and prevent sprawl out into the County. He firmly believes if this project is not built in the City it will be built a short ways outside City limits and the City would suffer another loss of revenue. City officials were at odds with one former County Commissioners for a long time over what they believed was the projected population for Bremerton in the year 2012. This is the City of Bremerton's opportunity to make its projections come true. He calculated the need to increase the City's population by 1,000 per year to meet those goals. With the election of two new Kitsap County Commissioners, the three Commissioners are people who believe and will adhere to the principles of the Growth Management Act, which will direct growth into the City. The project appears to be well designed, user friendly and targeted toward the right people. He believes a vote against this project is saying the Housing Authority doesn't know what they are doing and the work they put into it is for not, and the advise of the Kitsap County Housing Authority, which has experience in this area, should not be considered and that the Mayor and Mr. Hanna, who are paid to lead this City correctly financially aren't making good decisions. Vote on motion: Motion carried. In Favor: Opposed: Huff-Menees, Neville, Colvin, Winters, Montgomery, Farr McConnell, Overson, Law Paula Johnston, Deputy City Clerk, announced Item 8A had been /5 TAPE #1433 City Council Reg. Mtg. Minutes January 8, 1997 Page 15 of 17 pulled off the Agenda. 9A - PUBLIC ~RING, RESOLUTION ~2580, REGARDING RECOVERY OF FEES FOR TW~ ABATENRNT OF THE PROPERTY LOCATED AT 4906 KEAN STREET, #0769 OWNER: EVAN BURLEY, ~AB97-006 On November 15, 1996, the City demolished the burned house from the property located at 4906 Kean Street after the owner, Evan Burley, failed to do so as ordered by the Building Official. The cost charged to the revolving abatement fund for this action totaled $18,070.05. Council must now decide if the fees are just and reasonable and how they should be collected. President Fart asked the "Appearance Of Fairness/Conflict Of Interest" question. Mr. Montgomery stated he had toured the site several times, but he did not believe that would cloud his judgement. Mr. Winters stated Mr. Burley approached him to purchase a travel trailer from him, which he did not buy. President Farr announced all Council members will be seated. Roland Arper, representing the estate of George Liaset, stated Evan Burley was indebted to George Liaset going back to the 1980's. The last title report he obtained on the Burley property listed about 18 lien holders. They were in the process of foreclosure against Mr. Burley this year, but two days before foreclosure Mr. Burley filed for bankruptcy. They then petitioned the Bankruptcy Court to release them so they could continue their action, which was granted. Mr. Burley then came up with a proposal to sell the property for approximately $375,000. The legal action to foreclose was delayed to allow for the opportunity to sell the property. They are currently scheduled to foreclose on the property on February 7 and it is his understanding that the current sale agreement that they gave an extension to close has now been withdrawn, so the property is on the open market. His attorney, Bruce Buskirk has had various correspondence with the City and essentially their position is that they have worked long and hard to get in first position lien against the property and any liens the City may impose will be below their position as first position. Ian Sievers, City Attorney, stated the primary purpose of the Council is to verify the just and reasonable cost that was expended and to file a lien. The position of that lien and the impact of the prior liens would be subject of discussion at the further action of foreclosure. Mr. Montqomer¥ stated he had viewed the site and reviewed the work order history and was surprised at the cost of clean up considering the debris that had to be removed. M/S/C/U(Montgomery/Huff-Menees) to adopt Resolution No. 2580, ordering that the fees incurred for the abatement of the house TAPE #1433 City Council Reg. Mtg. Minutes January 8, 1997 Page 16 of 17 located at 4906 Kean Street be collected as reasonable abatement costs and become a lien against the property. 9B - PUBLIC W~RING, R~SOLUTION ~2581, REGARDING RECOVERY OF FEES FOR TWR ABATEMENT OF THE PROPERTY LOCATED AT 3807 6TH STREET, OWNER: ESTHER ALCANTR~, ~AB97-007 On December 2, 1996, the City secured the abated house located at 3807 6th Street after the owner, Esther Alcantra failed to do so as ordered by the Building Official. The cost charged to the revolving abatement fund for this action totaled $388.17. Council must now decide if the fees are just and reasonable and how they should be collected. Paula Johnston, Deputy City Clerk, read a letter from Patricio Alcantra Jr.,: "I Patricio C. Alcantra Jr. am writing this letter on behalf of his stepmother Esther Alcantra, who is 73 year old widow of honorable discharged Navy veteran. She lives on fixed income from my father's military and Puget Sound Naval Shipyard's retirement benefits. Esther and I were wondering if those concerned would accept say $300.00 instead of the $388.17." President Fart asked the "Appearance of Fairness/Conflict of Interest" question with all Council members being seated. Patriclo Alcantra Jr., stated his stepmother is on a fixed income and he is disabled, so this cost will place a hardship on them. His stepmother confided in him that she was willing to pay the total amount if she had to. They consulted with an attorney, who felt the cost of the labor was a little steep and could possibly be negotiated with the Council. Mr. Winters stated in his three years as a Council member he has not seen such a low charge for an abatement and wondered why they chose to let the city clean up the property rather than do it themselves? Mr. Alcantra stated their reason was not having the time or funds to accomplish the work. Mr. Winters pointed out the city did notify his stepmother and he did recognized the fact that Mr. Alcantra's father served in the military. Mr. Alcantra stated he would throw his mercy on the council and thanked the person who boarded up the windows and doors at the subject property. President Fart asked the City Attorney if Council had the authority to allow part of the fee to be collected now and part later? Ian Sievers stated if Council approves a lien the City will not take foreclose action. The City allows the County to foreclose on the property, such as actions taken for delinquent tax payments. The property owner actually has three years to repay the money. Mr. Colvin asked if the property owner understood they had three years to repay the cost? Mr. Sievers stated no, since it is an internal /7 #0979 TAPE #1433 City Council Reg. Mtg. Minutes January 8, 1997 Page 17 of 17 city policy and an automatic collection process. Mr. Neville stated he believed the subject property could be eligible for Bremerton Housing Rehabilitation loans, which could be used to fix up the house and make it more saleable. M/S/C/U(Montgomery/Huff-Menees) to adopt Resolution No. 2581, ordering that the fees incurred for the abatement of the house located at 3807 6th Street be collected as reasonable abatement costs and become a lien against the property. President Fart thanked the TV camera crew for their services: Rob Rupe, Jimmy Campbell and James Noble. With no further business meeting adjourned at 7:35 P.M. KATHLEEN L. McCLUSKEY, City Clerk DAVID D. FARR, Council President City of Bremerton KLM/DF/me cc: Normal Distribution File/Vault AGENDA BILL !. SUBJECT: 1997 CDBG Final Award Allocation BREMERTON CITY COUNCIL FOR AGENDA OF: January 22, 1997 ORIGINATING DEPT: DCD ORIGINATOR'. Marylyn Waibel '~0.'la~c DATE SUBMITTED: January 16, 1997 2. CLEARANCES: (Comment on back if necessary) Director of Community Develogn&ent Fiscal and Budget Committee Operations Committee~ ENDORSEMENT )c INFORMATION SUBMITTAL: 3. EXHIBITS: Recommendations APPROVED BY COUNCIL PRESIDENT FOR 4.SUMMARY STATEMENT AND REQUIREMENT FOR COUNCIL ACTION: The City of Bremerton has been notified from HUD that our actual 1997 CDBG Allocation is $600,000.00. In late summer we began the 1997 CDBG allocation process with the application, interviews, and Advisory Committee recommendations. On October 30, 1996, the City Council approved the Advisory Committee funding recommendations for $552,500.00. We are here tonight to allocate the additional dollars. We have an additional $47,500.00 from 1997 CDBG and $9,500.00 from unspent 1996 dollars. 8. RECOMMENDATION: Motion to approve additional funding recommendations. PULLED TABLED COUNCIL DIRECTIVE: RESPONSIBLE OFFICIAL: Development Manager ENFORCEMENT OFFICIAL: Development Manager EXPIRATION DATE: REVIEW DATE: 10. NOTICE OF ACTION APPROVED DISAPPROVED AMENDED DATE: ll. AGENDA BILL NO.:__ff~TL_<~ [ o~ 2. CLEARANCE COMMENTS: 5. IMPACT OF NON-PASSAGE: Additional funds would not be allocated. 6. IMPACT ON STAFFING, BUDGETS, FACILITIES, EQUIPMENT OR OTHER RESOURCES: None 7. RESEARCH SOURCES: ..2.o 1997 BREMERTON CDBG PLANNING & ADMINISTRATION $110,000.00 ESTIMATED AVAILABLE $120,000.00 ACTUAL AVAILABLE dlmll III I I .... I lllll[ Il Illl 1---IIIIiI1~ -- ATI~ACHMENT A -- APPLICANT PROJECT AMOUNT REQUESTED ADVISORY COMMITTEE RECOMMENDATION CITY COUNCIL APPROVAL 10/30/96 ACTUAL HUD $$ STAFF RECOMMENDATION ~[remerton, City of Smith Cove Strat. $24,000.00 $20,000.00 $20,000.00 $20,000.00 Bremerton, City of Neighborhood Promotion $18,500.00 $0.00 $0.00 $0.00 EDC Planning-B us mess Recruitmen $12,580.00 $0.00 $0.00 $0.00 $145,080.00 $110,000.00 $110,000.00 $120,000.00 *Committed AT]TACHMENT B 1997 BREMERTON CDBG PUBLIC/HUMAN SERVICES $85,000.00 ESTIMATED AVAILABLE $90,000.00 ACTUAL CDBG AVAILABLE $9,500.00 FROM UNSPENT 1996 PROJECTS APPLICANT PROJECT AMOUNT REQUESTED ADVISORY COMMITTEE RECOMMENDATION CITY COUNCIL APPROVAL 10/30/96 ACTUAL HUD $$ STAFF RECOMMENDATION Agape Chem. Dependency Counselin $30,000.00 $0.00 $0.00 $0.00 Big Brothers/Sisters Youth Mentoring $12,000.00 $7,500.00 $7,500.00 $7,500.00 Bremerton Foodline Food Bank Administration $12,000.00 $7,500.00 $7,500.00 $7,500.00 Bremerton Serv. Assoc. Chuckw.a..gon. $12,000.00 $10,000.00 $10,000.00 $10,000.00 Kitsap Health Centers Dental Access $14,600.00 $10,000.00 $10,000.00 $10,000.00 Kitsap Family Services Kitsap Sexual Assault Kitsap Youth Services KMHS KMHS Literacy Council RMH Services gound Institute YWCA Children's Landing Child Abuse Intervention Families United Youth at Risk Outreach Crisis Clinic Mastering Basic Skills For the Untreated Mentally Ill Project Future Builders ALIVE Program $12,422.00 $0.00 $0.00 $0.00 $12,057.00 $8,000.00 $8,000.00 $8,000.00 $14,184.00 $7,500.00 $7,500.00 $7,500.00 $29,921.00 $0.00 $0.00 $0.00 $22,779.00 $0.00 $0.00 $0.00 $10,800.00 $0.00 $0.00 $0.00 $21,481.00 $17,000.00 $17,000.00 $17,000.00 $30,933.00 $0.00 $0.00 $0.00 $23,855.00 $7,500.00 $7,500.00 $7,500.00 $314,032.00 :~:~:!:~ ................ .-': :~: .-:: :~: :~: *!:i::::: *:: ~:!: .............. ~:: :~:: ::.:: :.-'.-..': :~ ~ ::::: ::.::~:: ~.-',: :~..'.-.':: ::-:.-'::: :~?.':.-':: :..'.'.:::: :: :~::: :~.-'::::: .-..'...-',~ $85,000.00 $85,000.00 $99,500.00 1997 BREMERTON CDBG CAPITAL & ECONOMIC DEVELOPMENT $ ] 92,500.00 ESTIMATED AVAILABLE $192,500.00 ACTUAL. AVAILABLE ATTACHMENT C APPLICANT Admiral Theater }Agape Bremerton Parks Bremerton Parks Bremerton Parks Bremerton P.W. Bremerton P.W. Kiitsap Health Center K:i.tsap Museum N..~val Ave. School Otympic ESD Peninsula Services YMCA PROJECT Renovation Pacific Ave. Child Care Rehab. Restroom/Lighting ADA Neighborhood Park ADA Sidewalk Access Calming Devices Site Improvement Arch. Barrier Removal Basketball Court Child Care Resouce Renovation Recreation Field AMOUNT REQUESTED $I0,000.00 $90,00O.00 $38,300.00 $12,273.00 $100,000.00 $10,000.00 $25,000.0O $47,500.00 $118,081.00 $7,500.00 $7,626.00 $8,00O.00 $11,880.00 $486,160.00 ADVISORY COMMITTEE RECOMMENDATION '$7,500.00 $o.oo $38,300.00 $12,273.00 $29,427.00 $10,000.00 $25,000.0O $47,500.00 $0.00 $0.00 $7,500.00 $15,000.00 $192,500.00 CITY COUNCIL APPROVAL 10/30/96 $7,500.00 $0.00 $38,300.00 $12,273.00 $29,427.00 $10,000.00 $25,000.O0 $47,500.00 $0.00 $0.00 $0.00 $7,500.00 $15,000.00 $192,500.00 ACTUAL HUD $$ STAFF RECOMMENDATION $7,500.00 $0.00 $38,300.00 $12,273.00 $29,427.0O $10,000.00 $25,000.00 $47,500.00 $o.oo $0.00 $0.00 $7,500.00 $15,000.00 $192,500.00 1997 BREMERTON CDBG HOUSING SERVICES $165,000.00 ESTIMATED AVAILABLE $197,500.00 ACTUAL AVAILABLE ATrACHHENT D APPLICANT PROJECT AMOUNT REQUESTED ADVISORY COMMITTEE RECOMMENDATION CITY COUNCIL APPROVAL 10/30/96 ACTUAL HUD $$ STAFF RECOMMENDATION ~as~r ~eal Housing Modifi cations $12,643.00 $12,643.00 $12,643.00 $12,643.00 $480,892.00 $165,000.00 $165,000.00 $197,500.00 AGENDA BILL BREMERTON CITY COUNCIL CONTRACT FOR SUPPLEMENTAL LAW ENFORCEMENT SERVICES WITH THE HOUSING AUTHORITY OF THE CITY OF BREMERTON 2. ~J~: (co~on back 3. EXHIBITS: .if !e~a~y) City A~torn4~A~-~, ~ FOR AGENDA OF: 01-22-97 ORIGINATING DEPT: POLICE ORIGINATOR: PAUL Du FRESNE DATE SUBMITTED: 01-09-97 MAYoRENDORSEMENT~/k~ ~ IN~MATION. APPROVED BY COUNCIL PRESIDENT FOR SUBMITTAL: COUNCIL PRES I DENT ~~? ,~_ 4. SUMMARY STATEMENT AND REOUIREMENT FOR COUNCIL ACTION: Request approval for the Mayor to sign the 1997 Contract for Supplemental Law Enforcement Services with the Housing Authority of the City of Bremerton. RECOMMENDATION: ~.\~k~Oj~l,,p~~~ ~/~ It is recommended that Councl approve. /~u,/~ ~f ENFORCEMENT OFFICIAL EXPIRATION DATE REVIEW DATE P~LLED TABLED COUNCIL DIRECTIVE: 10. NOTICE OF ACTION APPROVED DISAPPROVED DATE: AMEN 11. AGENDA BILL NO: o CLEARANCE COMMENTS (cont.): 4. SUMMARY STATEMENT (cont./ : IMPACT ON NON-PASSAGE: Services will not be provided. o IMPACT ON STAFFING, BUDGETS. FACILITIES. EOUIPMENT QR OTHER RESQURCE$ Funding provided will cover actual personnel cost. cost will be absorbed in Department budget. Minor additional 7. RESEARCH SOURCES: CONTRACT FOR SUPPLEMENTAL LAW ENFORCEMENT SERVICES THIS AGREEMENT is between the CITY OF BREMERTON, by and through the BREMERTON POLICE DEPARTMENT ("Contractor"), a law enforcement agency of the State of Washington with jurisdiction over the relevant geographical area, and THE HOUSING AUTHORITY OF THE CITY OF BREMERTON ("BHA"), a municipal corporation organized under RCW 35.82, et sea. I. RECITALS WHEREAS, BHA operates a Iow-income housing area, commonly referred to as Westpark; and Bo Westpark contains 582 Iow-income households and comprises a geographic area of approximately 74 acres; and The incidence of criminal activity within Westpark substantially exceeds the level of activity in surrounding locales and requires supplemental law enforcement services; and Do Contractor is willing to provide supplemental contractual basis but within the scope of responsibilities as a police authority. law enforcement services on a its general law enforcement NOW, THEREFORE, for and in consideration of the mutual benefit to be derived herefrom, the adequacy of which is acknowledged by each party's authorized agent affixing his or her signature hereto, the parties now make and enter into the following: CONTRACT FOR SUPPLEMENTAL LAW ENFORCEMENT SERVICES -- PAGE 1 01/97 suplawen.doc II. AGREEMENTS SCOPE. Police officers funded by and assigned to the Housing Authority of the City of Bremerton are responsible for the delivery of supplemental police services to the residents of the Westpark Development. Specifically, officers are expected to work as community police officers, including the duties and responsibilities described in Attachment A and B. One (1) community Police Officer assigned to Westpark forty (40) hours per week. BHA to specify the hours. Part time service with police car exclusively at Westpark for sixteen (16) hours, Fridays and Saturdays, 5:00 p.m. to 1:00 a.m. Baseline Services, regular services afforded to all other residents of the City of Bremerton to include investigative services. TERM. Services shall commence January 1, 1997, and shall terminate on December 31, 1997, unless extended by agreement of the parties. C. COMPENSATION. Cost of one new hire to replace assigned patrol officer @ $47,764.00~ includes wages and benefits with vacations and holidays for 2,096 hours of work per year, plus 832 hours of overtime coverage @ $36.00 per hour maximum, or $29,994.00, for a total of $77,758.00 per year. Baseline service is at no additional cost during the term of this agreement. No additional compensation above the hourly patrol rate will be paid for court appearances, coordinating conferences or other time demands arising from patrol services. CONTRACT FOR SUPPLEMENTAL LAW ENFORCEMENT SERVICES -- PAGE 2 01/97 suplawen.doc Cars and Equipment. all compensation for Contractor. The charges set out in paragraph 1. preceding include cars, gasoline, repair and equipment provided by Contractor will provide BHA with an itemized billing for services within ten (10) days following the end of each calendar month during which services are provided. BHA shall pay for such services within twenty (20) days of receiving the bill. REPORTS AND INFORMATION ACCESS. Contractor agrees that BHA will have unrestricted access to all public information which in any way deals with criminal activity in Westpark and which is disclosable pursuant to RCW 10.97, 42.17 and any other laws pertaining to the disclosure of public records. This information will be provided at no cost by Contractor upon BHA's request and will be in addition to daily activity reports. REASSIGNMENT. BHA shall have the right to reasonably request Contractor to replace any assigned personnel for the following reasons: , ~ ~ 1. Neglect or non-performance of duties; 2. Disorderly conduct, use of abusive or offensive language, or fighting; 3. Criminal activity; Selling, consuming, possessing or being under the influence of intoxicants, including alcohol or illegal substances, while on assignment at Westpark; 5. Inadequate punctuality or attendance; or 6. Substantiated complaints from public housing residents or management. CONTRACT FOR SUPPLEMENTAL LAW ENFORCEMENT SERVICES -- PAGE 3 01/97 .2¢ suplawen.doc BHA shall provide written enumeration of the reasons for the request for replacement of the assigned personnel, including documentation and witnesses to the alleged behaviors. Fo ADMINISTRATION. Paul L. Du Fresne, Chief, is designated as Contractor's representative and Merrill Wallace II, the Executive Director of the Housing Authority of the City of Bremerton, is designated as BHA's representative for administration of this contract. G° NOTICES. All notices to be given by either of the parties hereto to the other party shall be in writing and may either be delivered personally or may be deposited in the United States Mail, postage prepaid, as either certified or regular mail, addressed to: Merrill Wallace II Housing Authority of the City of Bremerton P.O. Box 4460 Bremerton, WA 98312 Paul L. Du Fresne, Chief Bremerton Police Department 239 Fourth Street Bremerton, WA 98337 or to such other respective addresses as either party may from time to time designate in writing. Notices sent by mail shall be deemed to have been given when properly mailed; the postmark affixed by the United States Post Office shall be conclusive evidence of the date of mailing. HOLD HARMLESS. Contractor agrees to defend, indemnify, and hold harmless the BHA, its Commissioners, officers, employees, and agents from and against any and all liability, loss, cost, damage and expense, including costs and attorney fees in defense thereof, because of actions, claims or lawsuits for damages resulting from personal or bodily injury, including death at any time resulting therefrom, sustained or alleged to have been sustained by any person or persons, and on account of damage to property arising or alleged to have CONTRACT FOR SUPPLEMENTAL LAW ENFORCEMENT SERVICES -- PAGE 4 01/97 3( suplawen.doc arisen directly or indirectly out of or in consequence of the negligent performance of this Agreement, whether such injuries to persons or damage to property is due to the negligence of the Contractor, or its agents. If, however, the negligence of both BHA and Contractor is judicially found to be the cause of such damage or injury, the loss, cost, or expense will be shared in proportion to the relative degree of negligence of each. NONDESCRIMINATION. Contractor hereby certifies that it is an equal opportunity employer and has developed and implemented an Affirmative Action Program in accordance with the guidelines contained in Revised Order 4 of the United States Department of Labor. Both parties agree that they will not discriminate in any manner against any employee or applicant for employment because of race, color, religion, sex, national origin, age, marital status and disability, except for employment actions based on a bonafide occupational qualification. Such action includes, but is not limited to, employment, upgrading, layoff or termination, rates of pay or other forms of compensation, or selection for training. TERMINATION. This Agreement terminates automatically on December 31, 1997; however, if either party fails to substantially perform through no fault of the other and does not commence correction within five (5) days after written notice of the default and moves to diligently complete the correction thereafter, this Agreement is terminated upon a further ten (10) days' written notice. K. EXAMINATION AND RETENTION OF CONTRACTOR'S RECORDS. BHA, HUD, or Comptroller General of the United States or any of their duly authorized representatives shall, until three (3) years after final payment under this contract, have access to and the right to examine any of the Contractor's directly pertinent books, documents, papers, or other records involving transactions related to this contract which are otherwise CONTRACT FOR SUPPLEMENTAL LAW ENFORCEMENT SERVICES -- PAGE 5 01/97 suplawen.doc disclosable pursuant to public disclosure laws, including RCW 42.17 and RCW 10.97 for the purpose of making audits, examinations, excerpts and transcriptions. The periods of access and examination in paragraph 1. above are for records relating to: a) litigation for settlement of claims arising from the performance of this contract; or b) costs and expenses of this contract to which BHA, HUD or Comptroller General or any of their duly authorized representatives has taken exception shall continue until disposition of such appeals, litigation, claims, or exceptions. LIMITATIONS ON PAYMENTS MADE TO INFLUENCE CERTAIN FEDERAL FINANCIAL TRANSACTIONS. The Contractor agrees to comply with Section 1352 of Title 31, United States Code ("the Act") which prohibits the use of Federal appropriated funds to pay any person for influencing or attempting to influence an officer or employee of any agency, a Member of Congress, an officer or employee of Congress, or an employee of a Member of Congress in connection with any of the following covered Federal actions: The awarding of any federal contract; the making of any Federal grant; the making of any Federal loan; the entering into of any cooperative agreement; or the modification of any Federal contract, grant, loan or cooperative agreement. The Contractor further agrees to comply with the requirement of the Act to furnish a disclosure of any funds other than Federal appropriated funds (including profit or fee received under a covered Federal transaction) that have been paid or will be paid to any person for influencing or attempting to influence an officer or employee of any agency, a Member of Congress, an officer or employee of Congress, or an employee of a Member of CONTRACT FOR SUPPLEMENTAL LAW ENFORCEMENT SERVICES -- PAGE 6 01/97 32._ suplawen.doc Congress in connection with a Federal contract, grant, loan or cooperative agreement. APPLICABLE LAW; VENUE. This Agreement shall be construed and interpreted in accordance with the laws of the State of Washington. In the event of a dispute, such dispute shall be litigated in the Superior Court of the State of Washington for Kitsap County. ENTIRE AGREEMENT. This contract constitutes the entire Agreement between the parties. Any modifications or amendments shall be in writing and shall be signed by each party. HOUSING AUTHORITY OF THE CITY OF BREMERTON DATED: BY: MERRILL WALLACEII Executive Director CITY OF BREMERTON DATED: BY: LYNN S. HORTON Mayor DEPARTMENTAL APPROVAL: PAUL L. DuFRESNE, Chief of Police CONTRACT FOR SUPPLEMENTAL LAW ENFORCEMENT SERVICES -- PAGE 7 01/97 suplawer~.doc APPROVED AS TO FORM: RECEIVED FOR FILING: lAN R. SlEVERS, City Attorney KATHLEEN L. McCLUSKEY, City Clerk CONTRACT FOR SUPPLEMENTAL LAW ENFORCEMENT SERVICES -- PAGE 8 01/97 suplawen.doc HOUSING AUTHORITY OF THE CITY OF BREMERTON SUPPLEMENTAL POLICE SERVICES (ATTACHMENT A) POSITION DESCRIPTION Police officers funded by and assigned to the Housing Authority of the City of Bremerton are responsible for the delivery of supplemental police services to the residents of Westpark Development. Specifically, officers are expected to work as community policing officers, including performing the following duties and responsibilities: Respond to all calls, both emergency and non-emergency in nature, involving the Westpark Development and residents, and follow guidelines as stated in Attachment B. Engage in proactive policing strategies; develop and maintain rapport with Westpark residents, thus fostering an atmosphere of cooperation, compassion, coordination, peace and order within the Westpark Development. Encourage residents to report any and all suspicious or criminal activities as well as suspected/observed abuse or neglect of people, animals or property. Assist victims and homeless people, referring them to other agencies, when appropriate, for further assistance. Periodically engage in walking or bicycle patrols throughout the shift in all public areas of the Westpark Development to deter disorder or crime. Work with youth in the Westpark Development to help them understand and comply with laws and regulations. Work with the Bremerton Housing Authority and residents to help clean up the Westpark Development,.jncluding removal of graffiti, trash and debris. A ,_ ~L ............./~'~ ~ n'c~i I s~t o~ Work w~th Bremerton stag Authority managers and Ces~dent cou velop crime prevention programs, resident patrols and youth-oriented programs. 9. Make presentations and speeches to resident organizations and groups, as assigned. 10. Remain alert to the emergency needs of residents and visitors and take the appropriate action to protect life and property. 11. Development and maintain a working knowledge of judicial and criminal law in the areas of: self-incrimination; right to counsel; arrest; search and seizure; interrogation and confession; and the collection and preservation of evidence. CONTRACT FOR SUPPLEMENTAL LAW ENFORCEMENT SERVICES -- PAGE 9 01/97 suplawen.doc 12. Investigate the activities of suspicious persons as encountered or upon resident complaint using standard police techniques and in conformance with legal requirements to determine the identity, activity and reason for the presence of the suspicious person or persons. 13. Deliver citations for violations of Bremerton Housing Authority regulations as well as vehicle and local ordinances in conformance with legal requirements and police department policies and procedures. 14. Direct vehicle traffic as required to ensure the safe, orderly flow of traffic. 15. Serve warrants or summonses in conformance with legal requirements and police department policies and procedures in order to comply with court orders. 16. Interrogate suspects in accordance with legal requirements and police department policies and procedures using standard interrogation techniques and strategies. 17. Search individuals and their personal property prior to taking them into custody in compliance with legal requirements and police department policies and procedures using standard police search techniques to ensure the safety of the officer, other police department personnel, arrested persons, and the residents. 18. Incarcerate arrested persons as required in accordance with legal requirements and police department policies and procedures using standard police techniques in order to detain arrested persons pending further investigation and/or processing through the criminal justice system. 19. Assist in the securing of crime scenes and in the gathering and processing of evidence. 20. Promptly and properly prepare and submit the required daily reports to the Housing Authority of the City of Bremerton and the police department on each shift. 21. Enforce towing of abandoned or stolen vehicles. 22. Counsel juvenile and adult residents, referring them to the appropriate persons or agencies for further assistance. 23. Assist other police officers, as appropriate; accept and adhere to lawful direction and orders issued by a superior officer. 24. Assist prosecuting attorney(s) and the Bremerton Housing Authority attorney(s) in the preparation of court cases and, as required, testify at judicial trials and hearings. ~Maintain a professional decorum and attitude in all dealings with residents, visitors~, _,~ 25. Isuperiors and other department personnel; conduct personal life in a manner that sets~ ~. positive example for residents, especially youths. CONTRACT FOR SUPPLEMENTAL LAW ENFORCEMENT SERVICES -- PAGE 10 01/97 suplawen,doc 26. Operate a vehicle (to be supplied by the police department) within assigned geographic area at the direction of a supervisor or at own discretion according to standard police techniques and strategies in order to deter and detect criminal activity. 27. Operate closed circuit television (CCTV) cameras and monitors in the Westpark Housing Development, as required, for the purpose of deterring criminal activity and arresting violators. 28. Attend training courses, as assigned, to increase and enhance professional knowledge, skills and ability. 29. Maintain liaison with all law enforcement officers, Bremerton Housing Authority officials and related agencies' personnel to exchange information and facilitate cooperative efforts. 30. Work in an overtime status as required by the Bremerton Housing Authority Executive Director. . ~Provide any service necessary to further the Bremerton Housing Authority's mission ~,nd objectives that is not restricted by legal or police department policy. 32. Perform other law enforcement duties as assigned. CONTRACT FOR SUPPLEMENTAL LAW ENFORCEMENT SERVICES -- PAGE 11 01/97 suplawen.do¢ HOUSING AUTHORITY OF THE CITY OF BREMERTON SUPPLEMENTAL POLICE SERVICES (ATTACHMENT B) RCW 59.18.075 Seizure of Illegal Drugs -- Notification of Landlord Any law enforcement agency which seizes a legend drug pursuant to a violation of chapter 69.41 RCW, a controlled substance pursuant to a violation of chapter 69.50 RCW, or an imitation controlled substance pursuant to a violation of chapter 69.52 RCW, shall make a reasonable attempt to discover the identity of the landlord and shall notify the landlord in writing at the last address listed on the property tax records and at any other address known to the law enforcement agency of the seizure and the location of the seizure of the illegal drugs or substances. Any law enforcement agency which arrests a tenant for threatening another tenant with a firearm or other deadly weapon, or for some other unlawful use of a firearm or other deadly weapon on the rental premises, or for physically assaulting another person on the rental premises shall make a reasonable attempt to discover the identity of the landlord and notify the landlord about the arrest in writing at the last address listed in the property tax records and at any other address known to the law enforcement agency. (1991 c38&4; 1988c 150& 11.) CONTRACT FOR SUPPLEMENTAL LAW ENFORCEMENT SERVICES -- PAGE 12 01/97 suplawen,doc HOUSING AUTHORITY OF THE CITY OF BREMERTON SUPPLEMENTAL POLICE SERVICES (ATTACHMENT C) AGREEMENT OF COOPERATION BETWEEN The HOUSING AUTHORITY OF THE CITY OF BREMERTON and The BREMERTON POLICE DEPARTMENT A. AGREED UPON CONCERN: 1. Need for continued communication and cooperation between Bremerton Police Department and the Housing Authority of the City of Bremerton. applicants. Need for comprehensive and enhanced screening of Low Rent Public Housing B. MAJOR OOALS: 1. Reduce the number of problematic residents by utilizing an enhanced applicant screening process in the Low Rent Public Housing Program; 2. Create a safer environment which will be attractive to law abiding, productive residents who will contribute and enhance the quality and livability of a neighborhood; 3. Continue the communication and cooperation link be~'een the Bremerton Police Department and the Housing Authority of the City of Bremerton; 4. Improve the identification of applicants through more thorough review of forms of identification. Co as necessary, AGREED UPON ACTIONS BY PARTICIPANTS: 1. BHA Board of Commissioners - a. Adopt a non-financial Agreement of cooperation to continue, and amend the enhanced screening process; CONTRACT FOR SUPPLEMENTAL LAW ENFORCEMENT SERVICES -- PAGE 13 01/97 suplawen.doc b. Approve the addition of Bremerton Police Department record information to the current screening process; c. Utilization of Guidelines for Evaluating Criminal Historie~ of Applicants to LRPH for use as a reference in evaluation the seriousness of individual records; and d. Endorse public education and awareness of this enhanced screening process through media and community forums. 2. BHA LRPH Program Staff- a. Participate and cooperate with The Bremerton Police Department staff in the administration of this enhanced screening process. 3. Bremerton Police Department- a. Provide personnel during BHA screening sessions to assist in the identification of applicants, to answer applicant questions, and to provide other mutually agreed upon services; b. Provide Bremerton Police Data Service (BPDS) print-outs without charge to the Housing Authority while this Agreement is in effect; c. Provide support from the Planning and Support Division's Statistical Analysis unit for evaluation of the enhanced screening process; and ~~ ~d) Endorse public education and awareness of this enhances screening process througl'f'media and community forums. D. EFFECTIVE DATES OF AGREEMENT: The Bremerton Police Department and the Housing Authority of the City of Bremerton concur with the terms of this Agreement. This Agreement shall remain in effect until either party notifies the other through 30 day written notice of the need to revise or cancel the Agreement. Eo PROGRAM EVALUATION: The Bremerton Police Department and the Housing Authority of the City of Bremerton semi-annually, or as may be necessary, to review any areas of concem. agree to meet CONTRACT FOR SUPPLEMENTAL LAW ENFORCEMENT SERVICES -- PAGE 14 01/97 suplawen.doc This Agreement is signed and executed on behalf of the Housing Authority of the City of Bremerton and the Bremerton Police Department by the following parties: Merrill Wallace II, Executive Director Housing Authority of the City of Bremerton Date Chief Paul Dufresne Bremerton Police Department Date CONTRACT FOR SUPPLEMENTAL LAW ENFORCEMENT SERVICES -- PAGE 15 01/97 suplawen.doc HOUSING AUTHORITY OF THE CITY OF BREMERTON SUPPLEMENTAL POLICE SERVICES (ATTACHMENT D) HOUSING AUTHORITY OF THE CITY OF BREMERTON SCREEN CRITERIA FOR LOW RENT PUBLIC HOUSING APPLICANTS 1. Resident completes and submits application and reference forms. (Reference forms include Landlord and/or professional references). 2. Detailed questionnaires are mailed to landlord and/or professional references, along with a signed release from the applicant. 3. Criminal history checks are made through the Bremerton Police Department for all family members age 15 and older. 4. A review of HAP's Do Not Rehouse files is made to determine if the applicant family was a prior resident who should not be rehoused due to any or all of the following reasons: Eviction; skip from unit without notice; history of damage to the unit; excessive move-out charges, etc. 5. A review is made of the list of prior residents of other housing authorities (who are members of the Association of Washington Housing Authorities), who left owing money or moved in violation of the lease. 6. If the applicant's criminal or eviction record or landlord reference information is such that they are likely not to pay rent in a timely manner, not to take reasonable good care of the premises, or to interfere with the rights of other residents, the application is denied. A letter explaining the reason(s) for denial is sent to the applicant and gives the applicant the right to request an informal hearing. 7. The Admission Hearing Panel, composed of staff representatives and a Tenant's Commissioner meet to hear the denial cases. If the denial is upheld, or if the applicant fails to request a hearing, the applicant must wait one year to reapply for the Low Rent Public Housing Programs. CONTRACT FOR SUPPLEMENTAL LAW ENFORCEMENT SERVICES -- PAGE 16 01/97 suplawen.doc GUIDELINES FOR EVALUATING CRIMINAL HISTORIES OF APPLICANTS TO L.R.P.H. The decision regarding approval or denial of an application to Low Rent Public Housing (LRPH) will always be left to the sound discretion of the Housing Programs Manager or The Assistant Housing Programs Manager. It is the goal of BHA to only accept applicants who BHA believes will be able to meet the essential requirements of tenancy and who will not adversely affect the health, safety or welfare of other residents. The following guidelines are intended to assist and guide the decision makers in approving or denying applications so far as criminal activities are concerned. The denial of an application based on criminal activity shall be treated the same as a denial for any other reason, i.e., the applicant is entitled to view before the Housing Programs Manager. Evidence of any member of the applicant household having engaged in the listed criminal activities will be grounds for taking further screening action as described. BHA's approval or denial of an application will be based on the criminal activity engaged in, and is not dependent upon any action or inaction by any law enforcement agency, district attorney, or court. However, evidence of conviction for a crime shall be conclusive proof that a particular criminal activity was engaged in, and no denial decision shall be based solely upon the fact that an arrest was made for any particular crime. An applicant household will be placed in Category 1, 2, 3, or 4 for further screening according to the highest category into which an occurrence of any listed criminal activity falls. Any second and subsequent occurrences in any one category will be placed in the next higher category. Any occurrence more than 10 years old will be placed in the next lower category. FURTHER SCREENING, BY CATEGORY: Category 1 - concerned. No further screening, applicant household admitted so far as criminal history is Category 2 - Applicant(s) will be asked for explanation of criminal activities. Denial of application by Housing Programs Manager/Housing Programs Assistant requires approval of supervisor. Category. 3 - Applicant(s) will be asked for explanation and extensive evidence of rehabilitation, including but not limited to recommendations from social workers, parole or probation officers, treatment centers and others. Approval of application by Housing Programs Manager/Housing Programs Assistant requires approval of supervisor. Category 4- Admission denied. CRIMES LISTED BY CATEGORY: Category 1 MISDEMEANOR TRAFFIC OFFENSES Criminal driving while suspended CONTRACT FOR SUPPLEMENTAL LAW ENFORCEMENT SERVICES -- PAGE 17 01/97 suplawen.doc Driving while under the influence of intoxicants Failure to perform duties of driver when property damaged or person injured Reckless driving Category_ 2 OFFENSES AGAINST PERSONS Assault, 4th degree Sexual abuse, 3rd degree OFFENSES AGAINST PROPERTY Criminal mischief, 3rd degree Criminal trespass, 2nd degree Deposit of trash within 100 yards of waters or in waters Negotiating a bad check Offensive littering Placing offensive substances in waters, on highways or property Theft, 3rd degree OFFENSES AGAINST PUBLIC ORDER Abuse of venerated objects Disorderly conduct Harassment Telephone harassment OFFENSES AGAINST PUBLIC HEALTH, DECENCY AND ANIMALS Animal abandonment Animal abuse, 1 st and 2nd degree Animal neglect, 1 st and 2nd degree Dog fighting Involvement in animal fighting Participation in dog fighting Category_ 3 OFFENSES AGAINST PERSONS Abandonment of a child Assault, 3rd degree Assaulting public safety officer Child neglect, 1 st and 2nd degree Coercion Criminal mistreatment, 2nd degree Menacing Public indecency Rape, 2nd and 3rd degree Reckless Endangerment Sodomy, 2nd and 3rd degree Sexual abuse, 2nd degree CONTRACT FOR SUPPLEMENTAL LAW ENFORCEMENT SERVICES -- PAGE 18 01/97 suplawen.doc Unlawful sexual penetration, 2nd degree OFFENSES AGAINST PROPERTY Burglary, 2nd degree Criminal mischief, 2nd degree Criminal trespass Criminal trespass while in possession of firearm Interfering with police animal Possession of burglar's tools Theft, 2nd degree Theft of services Unauthorized use of a vehicle OFFENSES INVOLVING FRAUD OR DECEPTION Criminal possession of a forged instrument, 1 st and 2nd degree Criminal possession of a forgery device Criminal simulation Forgery, 1 st and 2nd degree Fraudulently obtaining a signature Fraudulent use of a credit card OFFENSES AGAINST PUBLIC ORDER Abuse of corpse Interfering with public transportation Intimidation, 2nd degree OFFENSES INVOLVING FIREARMS AND OTHER WEAPONS Negligently wounding another Obliteration or change of identification number on firearm Pointing firearm at another Possession of firearm in public building Unlawful purchase of firearm OFFENSES AGAINST PUBLIC HEALTH, DECENCY AND ANIMALS Displaying obscene materials to minors Disseminating obscene material Exhibiting an obscene performance to a minor Frequenting a place where controlled substances are used Furnishing obscene materials to minors Prostitution Publicly displaying nudity or sex for advertising purposes Sadomasochistic abuse or sexual conduct in live show Sending obscene materials to minors Tampering with drug records CONTROLLED SUBSTANCES Illegally selling drug equipment CONTRACT FOR SUPPLEMENTAL LAW ENFORCEMENT SERVICES -- PAGE 19 01/97 /-/5' suplawen.doc Possession of controlled substance Unlawful delivery of imitation controlled substance CRIMES LISTED BY CATEGORY: Category_ 1 MISDEMEANOR TRAFFIC OFFENSES Criminal driving while suspended Driving while under influence of intoxicants Failure to perform duties of driver when property damaged or person injured Reckless driving Category. 2 OFFENSE AGAINST PERSONS Assault, 4th degree Sexual Abuse, 3rd degree OFFENSES AGAINST PROPERTY Criminal mischief, 3rd degree Criminal trespass, 2nd degree Deposit of trash within 100 yards of waters or in waters Negotiating a bad check Offensive littering Placing offensive substances in waters, on highways or property Theft, 3rd degree OFFENSES AGAINST PUBLIC ORDER Abuse of venerated objects Disorderly conduct Harassment Telephone harassment OFFENSES AGAINST PUBLIC HEALTH, DECENCY AND ANIMALS Animal abandonment Animal abuse, 1 st and 2nd degree Animal neglect, 1st and 2nd degree Dog fighting Involvement in animal fighting Participation in dog fighting Category 3 OFFENSES AGAINST PERSONS CONTRACT FOR SUPPLEMENTAL LAW ENFORCEMENT SERVICES -- PAGE 20 01/97 suplawen.doc Abandonment of a child Assault, 3rd degree Assaulting public safety officer Child neglect, 1 st & 2nd degree Coercion Criminal mistreatment 2nd degree Menacing Public indecency Rape, 2nd and 3rd degree Reckless Endangerment Sodomy, 2nd and 3rd degree Sexual abuse, 2nd degree Unlawful sexual penetration, 2nd degree OFFENSES AGAINST PROPERTY Burglary, 2nd degree Criminal mischief, 2nd degree Criminal trespass, 1st degree Criminal Trespass while in possession of firearm Interfering with police animal Possession of burglar's tools Theft, 2nd degree Theft of services Unauthorized use of a vehicle OFFENSES INVOLVING FRAUD OR DECEPTION Criminal possession of a forged instrument, 1 st and 2nd degree Criminal possession Criminal simulation Forgery, 1 st and 2nd degree Fraudulently obtaining a signature Fraudulently use of a credit card OFFENSES AGAINST PUBLIC ORDER Abuse of corpse Interfering with public transportation Intimidation, 2nd degree OFFENSES INVOLVING FIREARMS AND OTHER WEAPONS Negligently wounding another Obliteration or change of identification number on firearm Pointing firearm at another Possession of firearm in public building Unlawful purchase of firearm OFFENSES AGAINST PUBLIC HEALTH, DECENCY AND ANIMALS Displaying obscene materials to minors CONTRACT FOR SUPPLEMENTAL LAW ENFORCEMENT SERVICES -- PAGE 21 01/97 /-/7 suplawen.doc Disseminating obscene material Exhibiting an obscene performance to a minor Frequenting a place where controlled substances are used Furnishing obscene materials to a minor Prostitution Publicly displaying nudity or sex for advertising purposes Sadomasochistic abuse or sexual conduct in live show Sending obscene materials to minors Tampering with drug record s CONTROLLED SUBSTANCES Illegally selling drug equipment Possession of controlled substances Unlawful delivery of imitation controlled substance Category_ 4 OFFENSES AGAINST PERSONS Aggravated murder Assault, 1 st and 2nd degree Criminal mistreatment, 1 st degree Criminally negligent homicide Dealing in depiction of sexual conduct involving a child Kidnapping, 1 st and 2nd degree Manslaughter, 1 st and 2nd degree Murder Paying for viewing sexual conduct involving a child Possession of depiction of sexual conduct involving a child Rape, 1st degree Sexual abuse, 1 st degree Sodomy, 1st degree Transporting child pornography into state Unlawful sexual penetration, 1 st degree Using a child in display of sexually explicit conduct OFFENSES AGAINST PROPERTY Aggravated theft, 1st degree Arson, 1 st and 2nd degree Burglary, 1st degree Criminal mischief, 1 st degree Reckless burning Robbery, 1st, 2nd and 3rd degree Theft, 1st degree Theft by extortion OFFENSES AGAINST PUBLIC ORDER; FIREARMS; RACKETEERING Firearm used in felony Intimidation, 1 st degree CONTRACT FOR SUPPLEMENTAL LAW ENFORCEMENT SERVICES -- PAGE 22 01/97 suplawen.doc Possession of destructive device Possession of firearm by felon Racketeering Riot setting springgun or set gun Treason Unlawful paramilitary activity Unlawful possession of armor piercing ammunition Unlawful possession of firearm Unlawful possession of machine gun, shot-barreled firearm or firearm silencer OFFENSES AGAINST PUBLIC HEALTH Compelling prostitution Promoting prostitution CONTROLLED SUBSTANCES Manufacture or delivery of controlled substance CONTRACT FOR SUPPLEMENTAL LAW ENFORCEMENT SERVICES -- PAGE 23 01/97 suplawen.doc - AGENDA BILL - BREMERTON CITY COUNCIL SUBJECT: Bid Award Public Works & Utilities Operations Center Warehouse - Storage Building FOR AGENDA OF: ORIGINATING DEPT: ORIGINATOR: DATE SUBMITTED: January 22, 1997 Public Works & Utilities Dan Miller, Project Manager~ January 6, 1997 2. CLEARANCES: (Comment on back ifan~ary) Director PW&U ~r~ /F~ City Attorney City Treasurer Purchasing Manager Operations Committee Fiscal & Budget Comm. ENDORSEMENT )~ INFORMATION 3. EXHIBITS: · Bid Opening List · MDM, Inc.'s Letter Dated Dec. 13, 1996 · Stellar Construction Inc.'s References · Sources & Uses of Funds APPROVED BY COUNCIL PRESIDENT FOR SUBMITTAL: 4. SUMMARY STATEMENT AND REOUIREMENT FOR COUNCIL ACTION: Bids were opened for the Public Works Warehouse - Storage Building on December 12, 1996. Eight (8) bids were received for the project (see attached Bid Opening List). The apparent low bidder~ MDM, Inc~, withdrew their bid proposal due to a material bid tabulation error. As a result, the second low bidder, Stellar Construction, Inc., is recommended for award for the base bid mount of $225,791.00. The recommendation before city Council is approval of the base bid contract to Stellar Construction, Inc. for the base bid amount of $225,791.00. 8. RECOMMENDATION: That City Council authorize and direct the Mayor to execute the contract for the construction of the Public Works & Utilities Warehouse - Storage Building with Stellar Construction, Inc. for the base bid in the mount of $225,791.00 subject to City Administrative Policies and Procedures. 9. RESPONSIBLE OFFICIAL: ENFORCEMENT OFFICIAL: EXPIRATION DATE: REVIEW DATE: PW&U Director Project Manager N/A N/A PULLED TABLED 10. NOTICE OF ACTION APPROVED DISAPPROVED AMENDED COUNCIL DIRECTIVE: DATE: 11. AGENDA BILL NO: ,5'o 2. CLEARANCE COMMENTS: 5. IMPACT ON NON-PASSAGE: The consolidation of the Utilities Operations' Water, Sewer, Storm, and Facilities Divisions at the Oyster Bay Operations Center will not proceed along with the Public Works & Utilities land acquisition of the undeveloped North property, adjacent to the Operations Center, from the Bremerton Fire Department. In addition, the Bremerton Fire Department will not acquire the Public Works & Utilities existing Olympus Drive warehouse for their storage use and needed consolidation of their equipment. 6. IMPACT ON STAFFING, BUDGETS, FACILITIES. EOUIPMENT OR OTHER RESOURCES: Necessary staffing time has been budgeted for to oversee this project. Sufficient funds exist for the construction of the Public Works & Utilities Warehouse - Storage Building. A project budgetary breakdown of the anticipated expenditures is attached, entitled "Sources & Uses of Funds". 7. RESEARCH SOURCES: {~970122_1 .ab} 5( Public Works & Utilities Operations Center Warehouse-Storage Building Bid Opening List, as submitted at 2:00 PM, Thursday, December 12, 1996 Business Base Bid w/W.S.S.T.* 1. MDM, Inc. WITHDREW S., Suite 201 BID 12-13-96 $205,000 $221,605 Des Moines, WA 98198 206-824-0705/fax-824-1145 ,,~ 2. Stellar Construction, Inc. ~E. PO Box 293 APPARENT $225,791 $244,080 Seabeck, WA 98380 LOW BIDDER 360-830-4476/fax-830-2555 3. Lincoln Construction, Inc., P.O. Box 730 $225,900 $244,198 Spanaway, WA 98387 206-847-6414/fax-847-6806 4. HCH Construction PO Box 2227 $230,433 $249,098 Poulsbo, WA 98370 360-779-4266/fax-697-3006 5. Summit Central, Inc. 610 Central Avenue, S, Suite A $235,400 $254,467 Kent, WA 98032 206-850-7655/fax-850-7722 6. North Sound Construction, Inc. 3316 E Blackburn $237,006 $256,203 Mount Vernon, WA 98273 360-424-3926/fax-428-2981 7. TEC Construction 17011 Lemolo Shore Dr. $245,000 $264,845 Poulsbo, WA 98370 360-779-1800/fax-697-1497 8. LUGO Construction, Inc. 6423 Pacific Hwy, E 294,305 $318,144 Fife, WA 98424 206-926-1624/fax-874-0307 * Washington State Sales Tax, in Kitsap County = 8.1% {lpwc._bid.lst} 5,2_ CONSTRUCTION / MANAGEMENT CERTIFIED MBE · DUE · 8A December 13, 1996 City ofBremerton / Public Works Mr. Dan Miller 3027 Olympus Drive Bremerton, WA 98310-4799 Subject: Bid for Warehouse - Storage Building Bid date: 12/12/96 at 2:00 PM Dear Dan, MDM, Inc. respectfully requests to pull its bid on the above named project. Due to an error in our pricing which did not include the costs for the erection of the building, which was missed on our part for an additional $26,268.00. This amount was at the very top of the second page and when the numbers were called to me this was missed. Thank you, Michael D. Mack, President 5_3 22024 Marine View Dr. S., Suite 201 · Des Moines, Washington 98198 Office: (206) 824-0705 · FAX: (206) 824-1145 4 November 1996 Project: Public Works & Utilities Operating Center Warehouse - Storage Building Building by Gold Seal Steel Buildings 60'X 126'X 16'Eaves Bay Width 18' Roof Pitch 2:1~ Roof Color: Walls: Gutters: Ridge Vents: Overhead Doom: Walk Doors: From standard colors 24 gauge standing seam, 20 year weather tightness warranty. 26 gauge color from standard, 25 year warranty Gutters and downspouts included with standing seam roof. 2 each included 5 each framed openings 14 X 14 (doors not included) 3 each framed openings (doors included) Note: F.O,B. Bremerton $ 54,340,00 Insulation $ 8,714.00 Price does not included Washington State Sale Tax Terms Of Payment 20% on signing of contract Engineer and Drawing Fee's 80% on Arrival at Job Site or Letter of Credit Plus Fees Erection $ 26,268.00 Terms Of Payment 20% Advance 80 % Completion Items not included in Price: Engineering of Foundation Site Preparation Overhead Doors Windows Interior Partitions Bollards Painting of any kind Concrete of any kind Permits of eny kind Fee's of any kind Thank you, Donald Koidahl President 2 l{elere, nee l..olSt: Stellm-" ' '- · L:. onstructlon ilO. P.O. Box 293 Seabeck; Wa 98380 Ph. (360) 830-4476 FX. (361J.) 830-25'~ 5 STELLAR Il-lC: December i 8, 1.996 PA'SE a. Project: Lax:.ey City ttall Ser~ond Fleor repair Prejec~ b Date o! Completion ' 11/25/96 c. Am! Of Contract: $55,179.00 d.' Seo. I~..: St, nic~.t~t repairs to second floor diaphra~n '.and new floor covefi~L.~ e. City o.t.'Lacey City Manager: Scott Hu.gi, ll PO ,Box :~.4~.10 (360) 49J · · . Lae~% Wa 98509-3400 2 a. P?oject: Jehn Sedgewick qleclmology l_x~b... South ~mp school l)isuict b. Date of Completion: 10/IS/90~ovember 29, !996 A~;. L~'C~;im~.: $80,594.00 d. Sc°[~ :Renovation ore, sting wm'etmuse into o~mputer l~tb Work inelud,~ demolkion: gene[~ ~ ei~rk.al, nl~:hatfiml ~d fi~e spfi~l~ system. e Somh FG~sap Sch~} District Rudolph Fyl~ A2. A, Dir~or Facilities ~ Opo'aficms (360) 87~7313 1650 SE C~argoad · PoJtOr¢;hm'~L Wa. 98367 t? Finfl Cost' $80,594. ry) 12/'19:," i. 996 i2:56 STELLAR F'~L~E NoYember 2g, !gg~ a. Project :'. Suquamish Portable Repair - North Kitsap School District b. Amount ofCcrnWaot: $9,780.00 c. · Scope: Replacement of rotted floor, wall, ceDinS,' and rooffi'aming. New insulatkm, do.alt'and finish paint system to affected ~eas. Removal of~istir~ carpeting. Kemoval of existing roof sYstem and installalion of new TotlI'CMowll roofing system. cl. North 1C~t~p School .District 400 1 Ii360 Caidart .Ave. NE. P,:nilsbo. Wa 98370 e.' Project .rnamger: F. an~' ()den (360) 779-3450 f Final Cost: $9,780,00 4. b. Pro3ect: KP - 1603 Escape Stairway - Ke)f)o~t Amt: Of Corrtr',~'t: $3 t ,317.00 Sc~)pe: [nstnllatJon of 2~ floor sn-uclural iro.u fire eocape. Work also incbjdes th-e 'alamt. exSt si~, cast in place, co,¢~e, painting. Jol-~fs°'n Controls World Services Nravai Submmine Base Bangor Sik~dale, Wa 08315 Projoct malm-~r: Scott (3601) 396-4685 Fin~{ Co~,: In progress 5'7 12119/'; 12:55 '13%083~2555 ~ ELLAFd 1,NC F AGE NOvember_29, '1996 ~. a..P~je;:t: Sou~ Kr~,p fid-,.c¢l Di~6ct o .Afl~letic Trainb~g Crater b. Date o4:'C..on~ple6on. Cra'rent ¢. A..n~Jui~t ofC.-x~tm~: 100.000_00 ti.' 'Sc~Je ' Re,~xtetb~g ofa classroonlto acram~modate progrmmnabc facilities arb lade tminiag c~atter. e. '$ontb K~-tsap Scht~q Dis*.rict ~kXl Jim De',,,~rag~ - .P.rqjeCt M,,magm: I~50 ,q..E. C:~r Road Port Orchard; VFa. 98367 c Aa~. OfCrmtract ' 77.200.00 $,,x'~ae: Cats~ructkm addifio~m ofapp~ox, 270 ~'and 191 ~fto md ~]g ca:~em~] of K~¢ Cramty C~soli~ H~sing A~o~, 9:~65 ~?shov~ Dd~ NW ~ WaM - ~y ~r Si!~rdale. WA 98383 PUBLIC WORKS & UTILITIES WAREHOUSE - STORAGE BUILDING Sources & Uses Of Funds As of December 16, 1996 Sources of Funds ] Water/Utility Budget $275.000 Total Sources of Funds (see attached) ....................................................................................... $275.000 Design: Uses of Funds City Engineering Division $ 5,000 Ed Jonson & Assoc. (Structural Engineer) 4,020 Total Design Costs .................................................................................... $ 9,020 Cgnstruction: Stellar Construction, Inc. $225,791 W.S.S.T. 18.289 Total Construction Contract ..................................................................... $244,080 Ancillary Funds ........................................................................................................................... $ 10,000 Ancillary Expenditures: Description Print Costs Sales, Plans & Specs. Material Testing/Inspection Survey Bldg Site Advertisement Budget Amount $ 1,200.00 (700.00) 8,000.00 1,000.00 500.00 $10,000.00 Expend Remaining To Date Anc. Funds $1,224.01 $ 8,775.99 (865.00) 9,640.99 1,898.44 7,742.55 352.95 7.389.60 $2,610.40 $ 7,389.60 Contingency Fm~ds ..................................................................................................................... $ 11,290 (Estimated at 5% of Construction Costs) Contingency Expenditures: Description Budget Expend Remaining Amount To Date Cont. Funds Total Sources & Uses ................................................................................................................ $275,000 ATTACHMENT TO PUBLIC WORKS & UTILITIES WAREHOUSE - STORAGE BUILDING Sources & Uses Of Funds .~AL// As of December 16, 1996 The 1997 Budget for R6225307 Warehouse at the Public Works Complex was budgeted for $200,000. The bid for the total project is $275,000. The $75,000 difference will be acquired from the R6223307 Mezzanine at the Public Works Complex. The 1997 Budget for the Mezzanine was budgeted at $105,000. This will lower the Mezzanine budget to $30,000. AGENDA BILL - BREMERTON CITY COUNCIL 1. SUBJECT: Labor Agreement by and Between the City of Bremerton and the Bremerton Police Management Association FOR AGENDA OF: January 22, 1997 ORIGINATING DEPT: Human Resources ORIGINATOR: Jim Meith, Human Resources Manager DATE SUBMITTED: December 30, 1996 Z. CI,EARAN_____C_E~_: (Comment onb3~k~f~cessary) Ian Sievers, City Attorne~-~/~c~ ~~ Rich Hanna, City Treasurer 3. EXHIBITS: Labor Agreement Summary of Changes Survey ENDORSEMENT ~ INFORMATION [ ] APPROVED BY COUNCIL PRESIDENT FOR SUBMITTAL: COUNCIL PRESIDENT ~~ 4. SUMMARY STATEMENT AND REQUIREMENT FOR COUNCIL ACTION: Pursuant to RCW 41.56, negotiations have concluded between representatives of the City and the Bremerton Police Management Association, resulting in the attached Labor Agreement. This Labor Agreement replaces the current one which expired December 31, 1996. The new Labor Agreement's term is January 1, 1997 through December 31, 1999. It has been ratified by the Association's membership. Council approval is required to implement the new agreement. RECOMMENDATION: Approve the Labor Agreement By and Between the City of Bremerton and the Bremerton Police Management Association January 1, 1997 through December 31, 1999. 9. RESPONSIBLE OFFICIAL: ENFORCEMENT OFFICIAL: EXPIRATION DATE: REVIEW DATE: Jim Meith,. Human Resources Manage] Jim Meith,, Human Resources Manage] December 31,. 1999 N/A 10. NOTICE OF ACTION PULLED [] TABLED [] APPROVED [] DISAPPROVED [] AMENDED [] DATE: COUNCIL DIRECTIVE: (over) 11. AGENDA BILL NO.: 2 · CL~J~R]L~OE COMMEI~P]~ = IMPACT OF NON-P~SAGE: Non-passage could result in a declaration of impasse and set in motion mediation and arbitration. IMPACT ON ST~FFINGt BUDGETS, FACILITIESt EQUIPMENT OR OTHER RESOURCES: The initial maximum cost of implementation will be approximately $15,800 (Fifteen Thounsand Eight Hundred Dollars). Adequate funds have been allocated in the 1997 budget. 7. RESEARCH SOURCES: HUMAN RESOURCES DEPARTMENT Mary Blanchard Barbara Forbes Jim Meith Virginia Schneider 239 4th Street · Bremerton, WA 98337 · (360) 478-5283 · FAX (360) 478-5161 S,~mmary of Changes in BPMA Labor Agreement 1. The Police Lieutenant top base salary step will be 15% above the top step Police Sergeant base wage rate. The Police Captain top base salary step will be 13% above the top step Police Lieutenant base salary rate. 2. In order to maintain equity, employees will earn longevity pay at the same rate as Police Sergeant. 3. Salary steps are increased from two to five steps. 4. The City will match the employee's deferred compensation contribution up to 2% of the employee's base monthly salary rate. 5. Maximum sick leave accrual was changed from 960 to 1000 hours, the same as the Management and Professional staff. 6. Bereavement leave was changed from 3 days in state and 5 days out of state to 5 and 7 days respectively. This time is charged against employee's leave balance. 7. An employee may elect to have the KPS A medical insurance for dependents if they pay the difference in premium. Other equivalent medical or dental coverage may be provided if approved by the Insurance Benefits Committee. 8. Uniform cleaning allowance increased from $275 to $300 annually. Clarifies that it is subject to federal income tax unless receipts are provided. 9. There are various technical and clarifying language corrections. Equal Opportunity Employer * City Of Bremerton 1996 Wage Survey Percentage Difference Between Ranks Comparing the 1996 top monthly base wage of a Police Officer to a Sergeant, Lieutenant, Captain and Commander Jurisdiction Police Officer Sergeant Sergeant Lieutenant Lieutenant Captain Captain Commander Commander Monthly Monthly (% of PO) Monthly (% of PO) Monthly (% of PO) Monthly (% of PO) Bremerton $3,789 $4,354 114.9% $4,844 127.8% $5,484 144.7% : NIA 0.0% Edmonds $3,813 $4,310 113.0% N/A 0.0% N/A 0.0% N/A 0.0% Lacey $3,659 $4,239 115.9% N/A 0.0% N/A 0.0% $4,942 135.1% *Longview $3,655 $4,224 115.6% N/A 0.0% $4,400 120.4% N/A 0.0% Lynnwood $3,763 $4,307 114.5% N/A 0.0% N/A 0.0% $5,518 146.6% Mount Vemon $3,449 $3,863 112.0% $4,402 127.6% N/A 0.0% N/A 0.0% Mountlake Ter $3,651 $4,171 114.2% N/A 0.0% N/A 0.0% $5,175 141.7% *Olympia $3,640 $4,130 113.5% $4,795 131.7% N/A 0.0% $5,327 146.3% *Puyallup $3,922 '$4,510 115.0% N/A 0.0% N/A 0.0% $5,710 145.6% Port Angeles $3,289 $3,792 115.3% $4,607 140.1% iNV~ 0.0% $4,888 148.6% *Oak Harbor $3,153 $3,594 114.0% N/A 0.0% $4,443 140.9% N/A 0.0% Vancouver , $3,832 $4,406 115.0% $5,068 132.3% $5,574 145.5% N/A 0.0% Average $3,635 $4,158 114.4% $4,743 130.5% !$4,975 136.9% $5,260 144.7% '1996 Data Not Available DISTRIBUTION: Mayor Hodon v' Jim Meith Chief DuFresne Police Officers Guild SourCe: Labor Agreements and Personal Calls to Comparable Jurisdictions LABOR AGREEMENT BY AND BETWEEN THE CITY OF BREMERTON AND THE BREMERTON POLICE MANAGEMENT ASSOCIATION JANUARY 1, 1997 THROUGH DECEMBER 31, 1999 TABLE OF CONTENTS TO THE COLLECTIVE BARGAINING AGREEMENT BY AND BETWEEN CITY OF BREMERTON AND BREMERTON POLICE MANAGEMENT ASSOCIATIONS JANUARY 1, 1997 THROUGH DECEMBER 31, 1999 PREAMBLE .............................................................. 3 ARTICLE I DISCRIMINATION ALLEGATIONS ............................... 3 ARTICLE 2 RECOGNITION ............................................. 3 ARTICLE 3 ASSOCIATION ACCESS ...................................... 3 ARTICLE 4 SALARIES ................................................. 4 ARTICLE 5 HOURS OF WORK ........................................... 5 ARTICLE 6 VACATION LEAVE ........................................... 5 ARTICLE 7 HOLIDAYS ................................................. 6 ARTICLE 8 SICK LEAVE AND INDUSTRIAL DISABILITY ....................... 7 ARTICLE 9 OTHER PAID LEAVE ......................................... 9 ARTICLE 10 RETIREMENT BENEFITS ..................................... 9 ARTICLE 11 INSURANCE BENEFITS ...................................... 10 ARTICLE 12 CLOTHING AND UNIFORM CLEANING ALLOWANCE .............. 11 ARTICLE 13 PERSONNEL PRACTICES .................................... 12 ARTICLE 14 ACADEMIC INCENTIVE ...................................... 12 ARTICLE 15 MANAGEMENT RIGHTS ..................................... 13 ARTICLE 16 GRIEVANCE PROCEDURE ................................... 13 ARTICLE 17 SEVERABILITY ............................................ 15 ARTICLE 18 ENTIRE AGREEMENT ....................................... 15 ARTICLE 19 CONFLICTING PROVISIONS .................................. 15 ARTICLE 20 TERM .................................................... 15 APPENDIX A ............................................................ 17 APPENDIX B ............................................................ 18 COLLECTIVE BARGAINING AGREEMENT CITY OF BREMERTON / POLICE MANAGEMENT ASSOCIATION JANUARY 9, 1997 PAGE 2 LABOR AGREEMENT BY AND BETWEEN THE CITY OF BREMERTON AND BREMERTON POLICE MANAGEMENT ASSOCIATION JANUARY 1, 1997 THROUGH DECEMBER 31, 1999 PREAMBLE This Agreement is made and entered into pursuant to the provisions of RCW Chapter 41.56 by and between the City of Bremerton, a municipal corporation of the State of Washington, hereinafter known as the "City", and the Bremerton Police Management Association hereinafter known as the "Association" for the purpose of setting forth the wages, hours and other terms and conditions of employment which shall be in effect during the term of this agreement for employees included in the bargaining unit described in Article 2 below. ARTICLE 1 ............. DISCRIMINATION ALLEGATIONS 1.1 An employee who believes that he or she has been the subject of unlawful discrimination on the basis of political affiliation, age, sex, marital status, race, creed, color, religion, national origin or activity protected by RCW 41.56 shall seek relief through the City's Equal Employment Opportunity Complaint Procedure or the appropriate state or federal agency charged with investigating such matters and shall not process such complaints through the Grievance Procedure of this Agreement. ARTICLE 2 ............. RECOGNITION 2.1 The City recognizes the Association as the sole and exclusive bargaining representative for the purpose of negotiations concerning wages, hours and conditions of employment for all employees in classifications set forth in Appendix A and such classifications as may be added to the bargaining unit during the term of this Agreement. ARTICLE 3 ............. ASSOCIATION ACCESS 3.1 Association business such as handling grievances and other legitimate routine matters may be conducted on Police Department premises provided that such business does not interfere with Police Department operations and is authorized by the Police Chief. COLLECTIVE BARGAINING AGREEMENT CITY OF BREMERTON / POLICE MANAGEMENT ASSOCIATION JANUARY 9, 1997 PAGE ARTICLE 4 ............. SALARIES 4.1 MONTHLY SALARY RATES -- Monthly salary rates shall be paid as set forth in Appendix A which is attached hereto and made a part hereof. Appendix A will be changed as necessary to reflect the following: 4.1.1 The salary rates for Police Lieutenant and Police Captain will be set so as to maintain the following differentials. 4.1.2 The Police Lieutenant top base salary step will be 15% above the top step Police Sergeant base wage rate. 4.1.3 The Police Captain top base salary step will be 13% above the top step Police Lieutenant base salary rate. 4.2 In order to maintain equity, employees will eam longevity pay at the same rate as Police Sergeant. 4.3 SALARY RATE IN A HIGHER CLASSIFICATION -- An employee moved to a higher classification will receive at least the entry step of the new salary rate or a step at least five percent (5%) higher, whichever is greater. However, no employee may be advanced beyond the final step of the new salary rate. 4.3.1 The employee's advance to the next step of the new salary rate will be based on the effective date of the new salary rate. 4.4 STEP ADVANCEMENT -- Advancement from Step to Step will occur upon the positive recommendation of the Police Chief and after completion of twelve (12) continuous months of service in each step. 4.5 TEMPORARY ASSIGNMENT TO HIGHER LEVEL POSITION -- The Police Chief or, in the absence of the Chief, the Mayor may provide a written directive to an employee to perform all or a part of the duties and accept all or a part of the responsibilities of a higher level classification. The employee so directed shall have his or her salary rate adjusted for the duration of the assignment as if he or she had been promoted to the higher classification provided, however, that such adjustment shall be no less than 4%. Other benefits provided such an employee through the provisions of this agreement shall not be affected and no benefits of the higher level classification shall apply to the employee dudng the assignment. This provision shall not apply in situations when the Police Chief designates an employee to serve in an "Acting" capacity during the absence of the Chief for vacations, while attending conferences, and other such usual and customary absences. COLLECTIVE BARGAINING AGREEMENT CITY OF BREMERTON / POLICE MANAGEMENT ASSOCIATION JANUARY 9, 1997 PAGE 4 4.6 DEFERRED COMPENSATION -- The City will match the payroll deduction of any written request by an employee in an amount not to exceed two percent (2.0%) of the employee's base monthly salary rate. ARTICLE 5 ............. HOURS OF WORK 5.1 Employees shall work such hours as are assigned by the Police Chief which shall be at least forty (40) hours per week, including paid holiday, vacation and sick leave time. In addition, employees shall serve on emergency standby status during such periods as are assigned by the Police Chief and are subject to emergency callback at any time. Employees covered by this agreement are exempt from the overtime provisions of the Fair Labor Standards Act. ARTICLE 6 ............. VACATION LEAVE 6.1 VACATION ACCRUAL -- Employees shall accrue vacation time with pay for all regularly scheduled work time including paid leave time pursuant to the following schedule: PERIOD OF CONTINUOUS FULL TIME EMPLOYMENT Date of Hire through 5 years 6th year 7th year 8th year 9th year 10th year 11th year 12th year 13th year 14th year 15th year 16th year 17th year and thereafter Hours Accrued/Year 104 Hours 120 Hours 128 Hours 136 Hours 144 Hours 152 Hours 160 Hours 168 Hours 176 Hours 184 Hours 192 Hours 200 Hours 208 Hours 6.2 VACATION ELIGIBILITY -- An employee becomes eligible to take accrued vacation time upon completion of six (6) months of continuous employment. Vacation time must be fully accrued prior to the time an employee takes any vacation time off. 6.3 VACATION SCHEDULING--Annual vacation leave shall be authorized by the Police Chief or the Chief's designee. Personnel shall schedule vacation leave by mutual agreement of the employee and the Police Chief or the Chief's designee. COLLECTIVE BARGAINING AGREEMENT JANUARyClTY OF BREMERTON / POLICE MANAGEMENT ASSOCIATION9, 1997 PAGE 5 6.4 MAXIMUM VACATION ACCRUAL -- The maximum number of vacation accrual hours that any employee shall be allowed to carry forward from one calendar year to the next is as follows: Years of Continuous Employment 0 through Five (5) years More than Five (5) years Maximum Balance 160 hours 240 hours In the event an employee has been prohibited from taking sufficient vacation time to reduce his or her vacation balance to the maximum allowable carryover at the end of a calendar year, the excess hours shall be paid out in cash at the employee's straight time hourly rate unless the City Council approves an extension of the time period beyond the end of the calendar year during which the employee must take all vacation hours which exceed the maximum allowable carryover. An employee who fails to request scheduled vacation time during the year and who's accrued vacation hours exceed the maximum carry over balance at the end of the calendar year shall forfeit such excess vacation hours. 6.5 VACATION PAY-OUT -- Upon the retirement or termination of an employee who has served six (6) continuous full months of employment or more, or upon the date of an employee's disability retirement, the accrued vacation hours of such an employee will be paid to the employee in a cash lump sum payment. ARTICLE 7 ............. HOLIDAYS 7.1 HOLIDAYS OBSERVED -- The following holidays shall be observed by the City: New Year's Day Martin Luther King's Birthday President's Day Memorial Day Independence Day Labor Day Veteran's Day Thanksgiving Day Day after Thanksgiving Christmas In addition, any other holiday legally proclaimed by the Federal or State government, provided that the City takes official action to have such holiday also observed by the City. 7.2 FLOATING HOLIDAY -- Each employee shall be allowed one additional holiday to be observed by the employee on a day mutually agreeable to the employee and the Police Chief. 7.3 ALTERNATIVE DAYS OF HOLIDAY OBSERVATION -- If a holiday observed by the City falls on a Saturday, the holiday will be observed on the preceding Fdday. If a holiday falls on a Sunday, the holiday will be observed on the following Monday. If the day a holiday is COLLECTIVE BARGAINING AGREEMENT CITY OF BREMERTON / POLICE MANAGEMENT ASSOCIATION JANUARY 9, 1997 ~,. PAGE 6 observed by the City falls on an employee's regularly scheduled day off, the employee shall receive an alternate day as a paid holiday. 7.4 HOLIDAY COMPENSATION -- An employee shall receive eight (8) hours of time off with pay for each holiday observed by the City and for a floating holiday of each employee's choice. ARTICLE 8 ............. SICK LEAVE AND INDUSTRIAL DISABILITY 8.1 SICK LEAVE ACCRUAL -- Employees shall accrue sick leave time with pay at the rate of .046154 hours for all normal hours of work including paid leave. 8.2 MAXIMUM SICK LEAVE ACCRUAL -- Employees shall be able to accrue sick leave to a maximum of one thousand (1000) hours. 8.3 SICK LEAVE INCENTIVE -- An employee who has more than five (5) years of continuous full time paid employment with the City and who takes thirty-two (32) hours or less of sick leave in the calendar year following the fifth year of employment and any subsequent calendar year, shall have eight (8) hours added to his or her vacation leave balance at the beginning of the following calendar year. 8.4 SICK LEAVE RETIREMENT OR DEATH PAYMENT -An employee who retires from City service on a service retirement shall be provided a Sick Leave Retirement Payment of thirty-five percent (35%) of the employee's accrued and unused sick leave hours to a maximum of 35% of 960 hours (a maximum total of 336 hours). The payment will be made to the employee at the employee's regular hourly wage rate in effect at the time of retirement or death. 8.5 SICK LEAVE USE -- Sick leave must be accrued prior to use by an employee. Sick leave shall be made available to each employee up to the amount of each employee's accrued sick leave balance hours due to: 8.5.1 The temporary disability of an employee resulting from his or her personal illness or injury. 8.5.2 Providing care for an employee's children under the age of 18 when they have a health condition that requires supervision or treatment. 8.5.3 Attending medical, dental and/or oculist appointments as needed for preventive or rehabilitative health care of the employee or the employee's children when such care requires parental presence to supervise or authorize treatment. 8.5.4 Upon the birth or adoption of a child, a father may use up to three (3) days of accrued sick leave. COLLECTIVE BARGAINING AGREEMENT CITY OF BREMERTON / POLICE MANAGEMENT ASSOCIATION JANUARY 9, 1997 '7/ PAGE 7 8.5.5 8.6 8.6.1 8.6.2 8.6.3 8.7 Providing for an employee's immediate family member when the family member has a health condition that requires the assistance of an adult caretaker until such time as other care can be arranged. No more than five (5) days of sick leave can be used for this purpose per calendar year, unless as otherwise provided in this section or by law. NOTIFICATION OF SICK LEAVE USE -An employee who is absent or expects to be absent from work due to causes specified in 8.5 above, shall provide notification as follows: ROUTINE APPOINTMENTS -- An employee who schedules a routine medical, dental or oculist appointment shall make every reasonable effort to schedule such an appointment at a time which will cause the least interference with the employee's work hours and duties. The employee shall give prior notice of the date and time of the appointment to his or her immediate supervisor. An employee's immediate supervisor may request that the employee reschedule routine appointments when, in the judgment of the supervisor, the scheduled absence of the employee would unduly interfere with the operations of the Department. An immediate supervisor shall not unreasonably deny an employee sick leave with pay for routine medical, dental or oculist appointments. UNANTICIPATED ABSENCE -- An employee who is absent from work or will be unable to report to work as scheduled due to personal illness or injury, or for other causes specified in 8.5 above, shall promptly notify the department by telephone or otherwise by 0800 of the day of his or her scheduled work day. SICK LEAVE DURING AUTHORIZED PAID LEAVE -An employee who becomes ill or is injured dudng the employee's paid vacation may request the conversion of such paid leave to sick leave with pay by promptly notifying the department of the illness or injury and providing such information as is required by the department to verify the appropriateness of such a conversion. SICK LEAVE DOCUMENTATION AND APPROVAL -- An employee who has been absent on sick leave shall, within thirty-six hours after returning to work, submit such forms and provide such information as are required by the Department to approve the use of sick leave with pay for the absence. The Department may require an employee to demonstrate that he or she has sought treatment, taken appropriate precautions or otherwise effected measures to correct the condition causing the employee's absence. Such demonstrations may take the form of personal statements of the employee, medical examinations or certifications of appropriate professionals, or other methods appropriate to the drcumstances. The Department may require an employee to provide certification by a professional physician that the employee is sufficiently recovered as to be able to return to work without posing a health hazard to himself or herself or to other members of the workforce. Sick leave must be approved by the Department prior to payment. The Department shall not unreasonably withhold approval of sick leave with pay from employees. COLLECTIVE BARGAINING AGREEMENT CITY OF BREMERTON / POLICE MANAGEMENT ASSOCIATION JANUARY 9, 1997 7.2- PAGE 8 8.8 8.9 ARTICLE 9.1 9.2 9.3 9.4 ARTICLE 10.1 INDUSTRIAL DISABILITY FOR LEOFF I EMPLOYEES -- An employee who qualifies for and is included in the Washington State Retirement System commonly referred to as "LEOFF I", who becomes disabled, and whose disability extends beyond a period of six (6) full months, shall apply for disability retirement benefits provided through LEOFF I. INDUSTRIAL DISABILITY LEAVE FOR LEOFF II EMPLOYEES --An employee who qualifies for and is included in the Washington State Retirement System commonly referred to as "LEOFF I1", and who incurs a work-related illness or injury shall be provided with such compensation as is made available through Workers' Compensation time-loss benefits as provided by Washingt.on 6tate Law. 9 ............. OTHER PAID LEAVE BEREAVEMENT LEAVE -- An employee will be granted five (5) days of bereavement leave for attending funerals in the State of Washington and seven (7) days for out of state funerals of members of the employee's immediate family. Immediate family shall be defined as spouse, child, stepchild, mother, father, mother/father in-law, brother, sister, bother/sister in-law, grandparents and grandchildren of both the employee and the employee's spouse. All time off for bereavement leave shall be charged against an employee's vacation/holiday, sick leave or compensatory time leave balance at the option of the employee. JURY DUTY, WITNESS LEAVE --An employee shall be granted leave of absence with pay for the purpose of reporting to Jury Duty or if subpoenaed as a witness. Any juror or witness fees received by the employee for the performance of such duties shall be assigned to the City. MILITARY LEAVE -- A leave of absence with pay for a period not to exceed 15 working days will be granted to an employee for the purpose of attending training as a member of the organized military reserves of the United States or of the State of Washington. EMERGENCY LEAVE -- In the event of an unforeseen emergency which requires the absence of an employee such as the illness, injury or death of a member of an employee's immediate family, the employee shall notify his or her immediate supervisor as soon as possible of the required absence. Such emergency leave may be charged to an employee's unused vacation/holiday or compensatory time leave balance. 10 ............ RETIREMENT BENEFITS Each employee shall be enrolled in the Washington State Retirement system for which he or she qualifies. Only for the purposes of federal income taxation, the gross income of each employee shall be reduced by the amount of employee contributions to the respective retirement system which is picked up by the City. COLLECTIVE BARGAINING AGREEMENT CITY OF BREMERTON / POLICE MANAGEMENT ASSOCIATION JANUARY 9, 1997 7.3 PAGE 9 ARTICLE 11.1 11.2 11.3 11.4 11.5 11 ............ INSURANCE BENEFITS MEDICAL INSURANCE -- The City shall make medical insurance coverage available to employees and their dependents as follows: Kitsap Physician's Service Plan A for Employees and Plan B for Dependents Group Health Cooperative for Employees and Dependents or another plan of equivalent coverage approved by the Insurance Benefit Committee. INSURANCE PREMIUM PAYMENTS -- Payment of insurance premiums shall be made as follows: Employee and dependent premiums paid in full by the City. Notwithstanding the above, an employee may elect to have KPS A for dependents, provided she or he pays in full any difference in premium. DENTAL INSURANCE -- The City shall provide the same benefit levels as are contained in the Washington Dental Service Plan A dental insurance coverage for employees and their dependents and provide for full payment of insurance premiums. Any other plan must be approved by the Insurance Benefit Committee. DISABILITY -- Employees who are covered by the Washington State Retirement System commonly known as LEOFF II, shall enroll to receive Long Term Disability Insurance coverage through the provisions of policies held by the City with Standard Insurance Company. The City shall pay a maximum of $12.50 per month per eligible and enrolled employee toward premium costs. The remainder of all premium costs shall be borne by the enrolled employee and shall be paid to Standard Insurance Company through payroll deductions authorized by each enrolled employee. Insurance Reserves, Rebates and Surpluses: The City shall require the KPS medical plan provider to provide a structured accounting to the City at least annually. Such accounting shall include plan utilizations, all reserve accounts maintained for the plan, interest earned on reserves, administration costs and coinsurance (pooling) costs. This accounting shall be made available to the Association upon request. The City agrees that premium rebates, reserve account rebates or any other monetary returns to the employer from the insurance providers together with subsequent interest earnings thereon shall be used exclusively to defray the costs of premium increases in the plan, and increase benefit levels, or other health related purposes determined appropriate by the Insurance Benefits Committee. Premium increases shall be any increase over the 1994 levels. COLLECTIVE BARGAINING AGREEMENT CITY OF BREMERTON / POUCE MANAGEMENT ASSOCIATION JANUARY 9, 1997 "~-- PAGE 10 11.6 INSURANCE COMMn-I'EE -- The Insurance Benefits Committee shall be comprised off the following members: Mayor or designee, Human Resources Manager or designee, Administrative Services Director of designee, one employee selected by the non- represented management and professional employees, and one individual selected by each of the recognized unions. The committee shall elect a chair and any other officers it deems appropriate. 11.7 Any co-pays not in effect January 1, 1997, must be approved by the Insurance Benefits Committee. ARTICLE 12 ............ CLOTHING AND UNIFORM CLEANING ALLOWANCE 12.1 PURCHASE OF UNIFORMS -- The employer shall establish a Clothing Allowance Fund for the Bremerton Police Department. Each police officer shall be furnished uniforms as designated by the Chief of Police. Such uniforms shall be replaced on an as needed basis from the Clothing Allowance Fund, as determined by the Police Department Administration Office. All uniforms purchased by the Employer are to be and remain the property of the Employer. 12.2 CLOTHING ALLOWANCE -An annual allowance of four hundred twenty five ($425.00) per year will be provided to non uniformed, sworn personnel. Such allowance shall be paid dudng the month of January. The employer shall withhold the necessary federal income tax from the cleaning allowance as required by the Federal tax code as now written or hereinafter amended. 12.3 UNIFORM CLEANING ALLOWANCE -- There shall be an annual uniform cleaning allowance of three hundred dollars ($300) This applies to all personnel covered by this agreement. Such allowance shall be payable in January. An employee will not be required to pay back to the Employer funds received for the purpose of clothing or cleaning allowance after the employee has received such payment. The employer shall withhold the necessary federal income tax from the cleaning allowance as required by the Federal tax code as now written or hereinafter amended. 12.4 CLEANING CONTRACT -- In the event the Employer secures a cleaning contract with an independent cleaning company during the term of this Agreement, 12.3 will become null and void. 12.5 ALTERNATE CLOTHING AND UNIFORM CLEANING ALLOWANCE REIMBURSEMENT METHOD --At the employee's option, she or he may submit appropriate receipts for reimbursement of either or both of these allowances. This method will be in lieu of the provisions of Article 12.2 and 12.3. An employee must inform the Treasurer's Office no later than January 1 of each year that she or he wishes to utilize this alternative. COLLECTIVE BARGAINING AGREEMENT CITY OF BREMERTON / POLICE MANAGEMENT ASSOCIATION JANUARY 9,1997 _.,~ ~-. PAGE 11 ARTICLE 13.1 13.1.1 13.1.2 13.1.3 13.1.4 13.2 13.3 ARTICLE 14.1 14.1.1 14.1.2 13 ............ PERSONNEL PRACTICES DEFINITIONS -- For the purpose of interpreting the provisions of this agreement, the following definitions shall apply: Probationary Employee: An employee serving a twelve- month period commencing upon the initial date of hire as a permanent employee dudng which the employee may be discharged at the sole discretion of the City, consistent with applicable Civil Service Rules and Regulations and without recourse to the grievance procedure. Promotional Probation: A twelve-month period commencing upon the initial date of a permanent promotional appointment during which a promoted employee who is unable to perform the duties of the higher level position shall be returned to his or her previous classification at the time of appointment at the sole discretion of the City, consistent with applicable Civil Service Rules and Regulations and without recourse to the grievance procedure. LEOFF I Employee: An employee who qualifies for and is a member of the Washington State Retirement System commonly known as "LEOFF I". LEOFF II Employee: An employee who qualifies for and is a member of the Washington State Retirement System commonly known as "LEOFF I1". PROMOTIONS AND VACANCIES -- All personnel reductions, filling of vacancies and promotions shall be handled in accord with existing Civil Service Rules and Regulations and shall not be subject to the grievance procedure. INDEMNIFICATION OF EMPLOYEES -- The City shall provide legal defense and will pay all legitimate claims, settlements, judgements, and associated costs for employees and their marital communities named as parties or defendants in claims or lawsuits as a result of acts or omissions made in the good faith performance of the City's business. 14 ............ ACADEMIC INCENTIVE An employee engaged in the pursuit of either undergraduate or graduate degrees related to the Law Enforcement profession shall receive limited tuition assistance if he or she meets the following guidelines: Tuition assistance is limited only to those courses related to Law Enforcement subjects and matriculation is in a state community college, state college or university in the State of Washington. The City will pay $60 per quarter unit or $90 per semester unit to a maximum of 10 units for course registration fees only. COLLECTIVE BARGAINING AGREEMENT CITY OF BREMERTON / POLICE MANAGEMENT ASSOCIATION JANUARY 9, 1997 PAGE 12 14.1.3 Only full time employees in good standing in the Bremerton Police Department are eligible for tuition assistance. 14.1.4 Tuition assistance shall continue as long as a grade of C or better is maintained. 14.1.5 The Police Chief shall have the authority to grant tuition assistance pursuant to the provisions of A above and shall have the authority to terminate tuition assistance if cause is shown. ARTICLE 15 ............ MANAGEMENT RIGHTS 15.1 Any and all rights concerned with the management and operation of the Police Department are exclusively that of the City unless otherwise provided by the terms of this Agreement. The City has the right, among other actions, to adopt rules for the operation of the Department and conduct of the employees, to discipline, suspend or discharge employees for cause, to assign work and determine duties of employees, to determine number of personnel to be assigned duty at any time, to determine and introduce new work methods or facilities to increase productivity for operation of the Department and to perform all of the functions not otherwise expressly limited by this Agreement. Provided, nothing herein shall be construed as a waiver of collective bargaining rights conferred on the parties by RCW 41.56. ARTICLE 16 ............ GRIEVANCE PROCEDURE 16.1 DEFINITIONS 16.1.1 GRIEVANCE -- A grievance is an allegation of a violation of the terms and conditions of this agreement which is to be resolved through this Grievance Procedure. 16.1.2 CIVIL SERVICE APPEAL -- An appeal is an allegation of a violation of the Civil Service Rules which is to be resolved through the Civil Service Appeals procedure and is not resolvable through this Grievance Procedure. 16.1.3 UNFAIR LABOR PRACTICE --An Unfair Labor Practice charge is an allegation of a violation of the Washington State statutes governing public employment labor relations which is to be resolved through the Public Employment Relations Commission's rules and regulations and is not resolvable through this Grievance Procedure. 16.2 STEP 1 -- An employee who believes that the terms and conditions of this agreement have been violated shall first discuss the action giving rise to the belief with the Police Chief within fourteen (14) calendar days of the date the action took place or within fourteen (14) days of the date upon which the employee could reasonably have been COLLECTIVE BARGAINING AGREEMENT CITY OF 8REMERTON / POLICE MANAGEMENT ASSOCIATION JANUARY 9, 1997 77 PAGE 15 16.3 16.4 16.5 16.6 expected to know of such action. The employee shall have the right to be assisted by an authorized Association representative during this discussion. STEP 2 -- In the event that the Police Chief does not resolve the grievance to the satisfaction of the employee at Step 1 of this procedure, the employee shall reduce the grievance to writing and shall state: the section (or sections) of this agreement which is alleged to have been violated; an explanation of the grievance in detail, including dates, actions and such other information necessary to a full investigation of the facts and circumstances giving dse to the grievance; and the remedy sought. The employee shall have the right to be assisted by an authorized Association representative in reducing his or her grievance to writing. The employee shall present the written grievance to the Police Chief within fourteen (14) calendar days of the date the employee met with the Police Chief. The Police Chief will reduce his or her decision on the grievance to writing and shall transmit the decision to the employee with a copy to the Association representative within fourteen (14) calendar days of receiving the written gdevance. STEP 3 -- In the event that the Police Chief does not resolve the grievance to the satisfaction of the employee at Step 2 of this procedure, the Association shall, on behalf of the employee, transmit a copy of the original grievance along with a copy of the Police Chiefs wdtten response to the Director of Personnel and the Mayor within fourteen (14) calendar days of receipt of the Police Chiefs written response. The Director of Personnel and the Mayor shall consider the grievance and may convene a meeting with the Association representative in an attempt to resolve the grievance. The Director of Personnel shall reduce his or her decision to writing within fourteen (14) calendar days of receipt of the grievance and transmit the decision to the Association. STEP 4 - In the event that the Director of Personnel and the Mayor do not resolve the grievance at Step 3 of this procedure, the Association may request arbitration of the issue by written notification to the Director of Personnel. The Director of Personnel and the Association shall meet within fourteen (14) calendar days of the date upon which the Director of Personnel rendered his or her written decision on the grievance and shall select a neutral arbitrator by mutual agreement or through a mutually agreeable process. POWERS AND DUTIES OF THE ARBITRATOR -- It shall be the duty of the arbitrator to conduct a hearing on the issue or issues submitted by the parties for decision. The hearing shall be kept informal and private. The arbitrator shall interpret the provisions of this agreement as they apply to the issue or issues submitted for decision and shall not add to, subtract from nor in any way otherwise alter nor recommend the alteration of the terms and conditions of the agreement in deciding the matter. As soon as is practicable after conducting the hearing, the arbitrator shall render a written decision which shall be binding upon the parties. COLLECTIVE BARGAINING AGREEMENT CITY OF BREMERTON / POLICE MANAGEMENT ASSOCIATION JANUARY 9, 1997 -7 r PAGE 14 16.7 16.8 ARTICLE 17.1 ARTICLE 18.1 ARTICLE 19.1 ARTICLE 20.1 COSTS OF ARBITRATION -- The expenses of the neutral arbitrator shall be borne equally by the parties. Each party shall singly bear all costs related to preparing and presenting its own case before the arbitrator, including costs of witnesses. The party desiring a record of the proceedings shall bear the cost of obtaining such record. T~ME L~M~TS -- Time limits established in this procedure shall be strictly adhered to but may be waived by mutual agreement of the Association and the City. All procedures contained herein shall be complied with as expeditiously as practicable. 17 ............ SEVERABILITY In the event that any provision of this Agreement is held invalid by operation of law or by any tribunal of competent jurisdiction, or if compliance with or enforcement of any Article should be restrained by such tribunal pending a final determination as to its validity, the remaining provisions of this Agreement shall not be held invalid and shall remain in full force and effect. The Association and the City shall immediately meet and attempt to renegotiate any provision found invalid. 18 ............ ENTIRE AGREEMENT The Association and the City acknowledge that each has had the unlimited right and opportunity to make proposals with respect to any matter deemed a proper subject for collective bargaining. The results of the exercise of that right are set forth in this Agreement. Therefore, the City and the Association each voluntarily and unqualifiedly agree to waive the right to oblige the other party to bargain with respect to any subject or matter not specifically covered by the Articles of this Agreement during the term of this Agreement, except as mutually agreed upon. 19 ............ CONFLICTING PROVISIONS In the event that any provision of this Agreement is found to be in conflict with any other Resolution, Ordinance, Policy, Regulation or Rule of the City, the provision of this agreement shall prevail. 20 ............ TERM This Agreement shall become effective January I 1997 and shall remain in effect through December 31 1999 and may be extended thereafter by mutual agreement. The City or the Association may request reopening of this Agreement any time within six (6) months of the expiration for the purpose of negotiating changes to be effective following the expiration of this Agreement with such notice to be in wdting to the other party. COLLECTIVE BARGAINING AGREEMENT CITY OF BREMERTON / POLICE MANAGEMENT ASSOCIATION JANUARY 9, 1997 7 PAGE 15 This agreement is hereby submitted to the Bremerton City Council for approval. Upon the approval of the Council, this agreement shall become binding upon the City, the Association and all of the employees in the bargaining unit covered by this agreement. DATED THIS day of ,1997 CITY OF BREMERTON: Jim M~(~, Human Resources Director / Paul Du Frense, Police Chief Lynn Herren, Mayor ATTEST: Kathleen McCluskey, City Clerk APPROVED AS TO FORM: lan R. Sievers, City Attorney COLLECTIVE BARGAINING AGREEMENT CITY OF 13REMERTON / POLICE MANAGEMENT ASSOCIATION JANUARY 9, '1997 PAGE 16 APPENDIX A TO THE LABOR AGREEMENT BY AND BETWEEN THE CITY OF BREMERTON AND BREMERTON POLICE MANAGEMENT ASSOCIATION JANUARY 1, 1997 THROUGH DECEMBER 31, 1999 Pursuant to Article 4, Salaries, this APPENDIX is supplemental to the Agreement by and between the CITY OF BREMERTON, WASHINGTON ("Employer") and the BREMERTON POLICE MANAGEMENT ASSOCIATION, ("association"). A.1 Effective January 1, 1997, the base monthly rates of pay for employees shall be as follows: Classification Step 1 Step 2 Step 3 Step 4 Step 5 0-12 mo. 13-24 mo 25-36 mo 37-48 mo 49+ mo Lieutenant $4,078 $4,293 $4,519 $4,757 $5,007 Monthly Captain $4,608 $4,851 $5,106 $5,375 $5,658 Monthly DATED THIS day of ,1997 CITY OF BREMERTON: /~~ Resources Director BREMERTOI~ pOLICE MANAGEI~NT COLLECTIVE BARGAINING AGREEMENT CITY OF BRF_.MERTON / POLICE MANAGEMENT ASSOCIATION JANUARY 9, 1997 PAGE 17 APPENDIX B TO THE LABOR AGREEMENT BY AND BETWEEN THE CITY OF BREMERTON AND BREMERTON POLICE MANAGEMENT ASSOCIATION JANUARY 1, 1997 THROUGH DECEMBER 31, 1999 Appendix B is attached for informational purposes only and is not subject to Article 16 of the Agreement. POLICE OFFICERS' BILL OF RIGHTS Section 1 - The wide ranging powers and duties given to the Police Department and its members involve them in all manner of contacts and relationships with the public. Of these contacts come many questions concerning the actions of members of the force. These questions often require immediate investigation by superior officers designated by the Chief of the Bremerton Police Department. In an effort to insure that these investigations are conducted in a manner which is conducive to good order and discipline, the following guidelines are promulgated: Ao Internal Investigation Defined. For the purposes of this Appendix, the term "internal investigation" means an investigation by or under the authority of the Chief of Police of activities, circumstances or events pertaining to the conduct or acts of a City law enforcement employee. Such investigation shall be deemed a "criminal investigation" where it is suspected that such conduct or acts are or may be the basis for filing a criminal charge against such employee, and shall be deemed a "major investigation" where it is suspected that such conduct or acts may also or alternatively be the basis for discharge, suspension or other discipline of such employee. Employee Advised of Alleged Misconduct. Every employee who becomes the subject of an internal investigation shall be advised at the time of any interview in connection therewith that, as the case may be, (s)he is suspected of: (1) Committing a criminal offense; (2) Misconduct which would be grounds for termination, suspension, or other disciplinary action; or that (s)he may be qualified for continued employment with the Police Department. At the time of the interview such employee shall also be informed of the name of the officer in charge of the investigation and the name of the officer who will be conducting the interview. COLLECTIVE BARGAINING AGREEMENT CITY OF BREMERTON / POLICE MANAGEMENT ASSOCIATION JANUARY 9, 1997 PAGE 18 Do Representation by Counsel. Any employee who becomes the subject of a cdminal investigation may have legal counsel present during all interviews of such employee. Such representation by counsel shall be confined to counseling and shall not be authority for any participation by counsel in the investigation. Employee to be Informed in Writing-Recorded Interviews. In the case of any major investigation and before any interview commences, the employee to be interviewed shall be informed in writing of the nature of the investigation including information necessary to reasonably appraise him/her of the allegations of any complaint and (s)he shall be afforded an opportunity and facilities to contact and consult privately with an attorney of his/her own choosing before being interviewed. Such employee may request that the interview be recorded, either mechanically or by a stenographer, and no questions shall be asked "off the record". Upon request, the employee under investigation shall be provided an exact copy of any written statement (s)he has signed and a verbatim transcript of any interview of such employee. Interviewing Procedures. Interviews shall be held at a reasonable hour and preferably when the employee to be interviewed is on duty unless the exigencies of the interview indicate otherwise. Whenever possible, interviews shall be scheduled during the normal work day of the City. Interviewing shall be completed within a reasonable time and shall be accomplished under circumstances devoid of intimation or coercion. The employee being interviewed shall be entitled to such intermissions as (s)he shall request for personal necessities, meals, telephone calls, and rest periods. All interviewing shall be limited to the conduct or acts of the employee under investigation which form or may form the basis for disciplinary action, termination of employment or the filing of criminal charge. Intimidation of Employee Prohibited. No employee under investigation shall, as a guise for obtaining such employee's resignation, be falsely threatened with dismissal or other disciplinary action should (s)he refuse to resign, nor shall (s)he be subjected to abusive language or in any other manner intimated or offered promises or reward as an inducement to answer questions. COLLECTIVE BARGAINING AGREEMENT CITY OF BREMERTON / POL,CE MANAGEMENT ASSOCIATION JANUARY 9, 1997 PAGE 19 AGENDA BILL BREMERTON CITY COUNCIL 1 ... SUBJECT: ORDINANCE NO. ~ _., ~ -~ AUTHORIZING THE ISSUE OF A $1,250,000 TAX ANTICIPATION NOTE, ACCEPTING THE PURCHASE OFFER OF SEAFIRST BAN~ FOR AGENDA OF: Jan. 15,1997 ORIGINATING DEPT: Treasurer ORIGINATOR: R. Hanna DATE SUBMITTED: Jan. 8, 1997 CLEARANCES: Comment of back if necessary) Dir. Admin. Se ~-.-"~ 3. EXHIBITS: Proposed Ordinance Cash Flow Projection Note Purchase Offer (at Council meeting) ENDORSEMENTS ~(~ INFORMATION APPROVED BY COUNCIL PRESIDENT FOR SUBMITTA 4, SUMMARY STATEMENT AND REQUIREMENT FOR COUNCIL ACTION: As indicated in the exhibits attached, the City's General Fund will run a cash deficit for several months dudng the year unless some form of cash flow financing is provided. Analysis indicates that a Tax Anticipation Note is the most advantageous method of providing the necessary cash flow financing. 8. RE;COMMENDATION: 'Iv103'lON TO APPROVE ON F;RST=R -EADtNG--ORDI~ MOTION TO PASS ON SECOND READING ORDINANCE NO. 9. RESPONSIBLE OFFICIAL: Treasurer ENFORCEMENT OFFICIAL: Mayor EXPIRATION DATE: Jan. 31 ~ 1998 REVIEW DATE: N/A PULLED COUNCIL DIRECTIVE: TABLED 10. NOTICE OF ACTION APPROVED DISAPPROVED AMENDED 11. AGENDA BILL 8A 2. CLEARANCE COMMENTS: 5. IMPACT ON NON-PASSAGE: The City's General Fund will operate for much of the year with a negative cash balance which is contrary to state law. 6. IMPACT ON STAFFING. BUDGETS. FACILITIES. EQUIPMENT OR OTHER RESOURCES: Budgeted. 7. RESEARCH SOURCES: Cash Flow Projections. Bond Counsel. Negotiations with underwriting bank. 01/08/97 13:21 FAX 2084479700 I FP & $ 001,'028 FOSTER PEPPER & SHEFELMAN A Law Partnership Including Professional Service Corporations 1111 Third Avenue, Suite 3~00 Seattle, WA 98101 (206) 4~,7-4400 FAX (206! 447-9700 EAC IMILE COVER SHEET ~;," cc January 8, 1997 ~:~, ~ ~ ~ FAx = VOICE CON- CONTACT. F~RM. 1. Rich Hanna and Kathleen M¢Cluskey 2. Jane Tower¥ and Shandra Tietze (360) 478-5200 (360) 478-5290 Y 358-8818 358-8988 Y From: Attachment(s): Message: Tracy Becht Revised ordinance authorizing 1997 TANs, including b]acklined copy This version of note ordinance reflects changes requested this morning. let me know of any other changes. Direct Dial #: 447-8936 Piease Pages including this cover page; 26 Hard Copy to Follow?: YES--mail Return To/Location: Tracy Becht/33-59 User & Client/Matter #: 816/40080/1 IF YOU NAVE ANY QUESTIONS REGARDING THE TRANSMISSION OF THIS FAX. PLEASE CONTACT THE F~X DEPARTMENT AT: (206) 447-2903 THE INFORMATION CONTAINED IN THIS FACSIMILE COMMUNICATION IS PRIVILEGED AND/OR CONFIDEI~rTIAL INFORMATION INTENDED ONLY FOR THE USE OF EACH INDIVIDUAL OR ENTITY NAMED ABOVE. IF THE READER OF THIS COVER PAGE IS NOT AN INTENDED RECIPIENT, YOU ARE HEREBY NOTIFIED THAT ANY DISSEMINATION, D~STRIBUT1ON OR COPYING OF THIS COMMUNICATION OR THE INFORMATION CONTAINED IN THIS COMMUNICATION IS STRICTLY PROHIBITED. IF YOU HAVE RECEIVED THiS COMMUNICATION ~N ERROR, PLEASE IMMEDIATELY NOTIFY US TELEPHONE AND RETURN THIS FACSlMILETO US AT THE ABOVE ADDRESS VIA THE U.S. POSTAL SERVICE. THANK YOU, 01/08/97 13:22 FAX 2064479700 i FP & S ~002/028 AN ORDINANCE of the City of Bremertcn, Washington, authorizing the issuance of tax anticipation notes for the purpose of paying City expenses pending the receipt of general City taxes; creaking a note redemption fund; providing for the sale of tP. ose notes ~o Bank of America NT&SA, doing business as Seafirst Bank of Seattle, Washington. Approved: January 15, !997 Passed: January 22, 1997 This document was prepared by: Foster Pepper & Shefelman 1111 Third Avenue, Suite 3400 Seattle, Washington 98101 (206) 447-4400 01/05/97 FP & $ ~003/028 13:22 FAX 2064479700 AN ORDINkNCE o~ the City of Bremerton, Washington, authorizing the issuance of tax anticipation notes for the purpose of paying City expenses pending the receipt of general City taxes; creating a note redemption fund; providing for ~he sale of those notes to Bank of America NT&SA, doing business as Seafirst Bank of Seatgle, Washington. ?~HERF. J~, the City Council of the City of Bremerton, Washington (the "City"), finds that the periodic collections of sales, excise and general ad valorem taxes and other revenues in 1997 will not be sufficient to meet necessary City expenses as they are incurred in 1997, and that it is in the best interest of the City to contract short-term debt pursuant to chapter 39.50 RCW to pay those expenses pending receipt of taxes and other revenue collected by the City; NOW, THEREFORE, TFIE CITY OF BREMERTOA~ DOES ORDAIN: Section 1. Debt Capacity. The preliminary assessed valuation of the taxable property of the City as ascertained by the last preceding assessmen~ for City purposes for the year 1996 for tax collection in the year 1997 is $1,302,580,919 and the City as of November 30, 1996, had $10,300,910 o~ outstanding general indebtednes~ evidenced by limited tax 9eneral obligation bonds and note~ and tax anticipation notes incurred within the limit of up ~o 1-1/2% of the value of the taxable property within the City permitted for general municipal pu.~poses without a vote of the qualified voters therein, and unlimited tax general obligation bonds in the principal amount of $!,710,000 within the limit of ~lp to 2-1/2% of the value of the taxable property within the City for 01/08/97 15:23 FAX 2064479700 1 FP & S ~004~028 general capital purposes issued pursuant to a vote of the ~aalified voters of the City, and zhe amount of indebtedness for which the notes are herein authorized Zo be issued is $~,250,000. The general indebtedness zo be incurred shall be within the limit of up to 1-1/2% of the value of ~he taxable property within the City permitted for general municipal purposes without a vote of the qualified voters therein. Section 2. Note.Fund; Authorization an~ Description of Nc~es. There is created in the office of the City Treasurer a special fund called the Tax Anticipation Note Fund, 1997 (the "Nc%e Fund"), Pending the collection of sales, excise and general ad valorem property taxes levied for collection in ~997 and o~her revenues anticipated to be received in 1997, ~he City shall issue and sell its tax anticipation notes to be desi~.~ated Tax An%icipation Notes, 1997 (the "Notes"), in the principal amount of $~,~$0,000. The Notes shall be da%ed February ~, i997; shall mature on January 3%, 1998; shall be in the denomination of $50,C00 or any integral multiple thereof; shall be numbered separately in Zhe manner and with any additional designation as zhe Note Registrar (collectively, the fisca~ agencies of the State cf Waskin~on located in Seattle, washington, and New York, New York) deems necessary for purposes cf identificazion; and shall bear interes~ at ~he rate of % per annum (computed on the basis of a 360-day year of twelve 30-day months), payable at maturity, if any Note is not redeemed when properly presented at its maturity, then inzerest shall continue to accrue at the same ra~e from and after maturity until that Note, with interest~ is paid in fu~l or un~il sufficient money for such payment in full is on deposit in the Note -2- 01/08/97 FP & $ ~005/025 13:24 FAX 2064479700 1 Fund and the NoTe has been called for redemption. The City Council declares and finds that the fixing of the above interest rate is in the best interests oX the City. The Notes shall be general obligations of the City. The Notes shall not be subject to redemption prior to their maturity date, Section 3. Reqistra,tion and Transfe. r of Notes. The Notes shall be issued only in registered form as to both principal and interest and shall be recorded cn books or records maintained by the Note Registrar (the "Note Register"). The No~e Register shall contain the name and mailing address of the owner of each Note and the principal amount and number of each of the Notes held by each owner. Notes surrendered '~o the Note Registrar may be exchanged for Notes in any authorized denomination of an equal aggregate principal amount. Notes may be transferred only if endorsed in the manner provided thereon and surrendered to the Note Registrar. A~y exchange or transfer shall be witheut cost to the owne~ or zransferee. The Note Registrar shall not be obligated to exchange or transfer any No~e during the 15 days preceding the maturity date. Sec,.t~on 4. Pa.%~ment of Notes. Both principal of and interest cn the Bonds shall be payable in lawful money of the United S~ates of America upon presentation and surrender of the Notes by ~he registered owners at either of the principal offices of the Bond Registrar at The option of the owners. $gction 5. Pledge of_Taxes. The Notes shall be paid solely from the Note Fund. The City irrevocably pledges to budget and 027323.7. ~2 -3- 01/08,'97 F? & $ ~006~028 13;24 FAX 2064479700 1 levy :axes within the constitutional and statugory tax limitations provided by law without a vote of the electors cf the City on all of the taxable property in the City in an amount sufficient, together with other money lesally available and to be used therefor, to pay the principal of a~.d interest on the Notes at maturity. The City further irrevocably pledges :o set aside an~ deposit inzo the Note Fund from such taxes and other money on or before the maturity date of the Notes an amount sufficient to pay, both principal and interest, and redeem the Notes on their maturity date. The full faith, credit and resources of the City are pledged irrevocably for the payment of the principal of and interest on the Notes. ~ectio~ ~. Porm and Exe.cution of Notes. Tke Notes shall be prin~ed, typed or mu!:icopied on ~ood bond paper in a form consistent with the provisions of this ordinance and state law, shall be ~iS-ned by the manual or facsimile signature of the City Treasurer, and shall have the seal of the City or a facsimile reproduction thereof impressed or printed thereon. Only Notes bearing a Certificate of Authentication in the followin9 form, manually sisned by the Note Resis:rar, shall be valid or oblisa~ory for any purpose or entitled to the benefits of :hi~ ordinance: CERTIPiCAT~ 0P AUTHENTICATION This Note is one of the fully registered City of Bremerton, Washinston, Tax Anticipation Notes, 1997, described in the Note Ordinance. WAS~I~GT0~ STATE PISCA~ AGANCY Bond Resistrar -4- q/ 01/08/97 13:25 FAX 2064479700 i FP & s [~007/028 By Authorized Signer The authorized signing of a Certificate of Authentication shall be conclusive evidence that the Notes so authenticated have been duly executed, authenticated and delivered and are entitled to the benefits of this ordinar, ce. If any officer whose facsimile signature appears on the Notes ceases to be an officer of the City authorized to sign notes before the ~o~es bearing his cr her facsimile signature are delivered or issued by the City, those Notes nevertheless may be issued and delivered and, when issued and delivered, shall be as binding on the City as though that person had continued to be an officer cf the City authorized to sign no~es. Any Note also may be signed on behalf of the City by any person who, on the actual date of signing of the Note, is an officer of the City authorized to sign bonds, although he or she did not hold the required office on the date of issuance cf the Note~. ~tion 7. Note Regist_rar. The Ncte Registrar shall keep, or cause to be kept, at its principal corporate trust office, sufficient books for the registration and transfer of the Notes, which shall be open to inspection by the City at all times. The Note Registrar is authorized, on bekalf of the City, ~o authenticate and deliver Notes transferred or exchanged in accordance with the provisions of the Notes and this ordinance, %o serve as the City's paying agent for the Notes and to carryout all of the Note Registrar's powers and duties under this ordinance and City Ordinance No. 3862 establishing a system of registration for the City's bonds and obligations. 02'~3217,0'2 01/08,97 13:26 FAX 2064479700 1 FP & S ~008/028 The Note Registrar shall be responsible for its representations contained in the Note Registrar's Certificate of Authentication on the Notes.. The ~o~e Registrar may become the owner of Notes with the same rights it would have if it were not the Note Registrar and, to the exten5 permitted by law, may act as depository for and permit any of its officers or directors to act as members of, or in any other capacity with respect to, any committee formed to protect the rights of Kote owners. Sec%ion 8. Notes Negotiable. The Notes shall be negotiable instruments to the extent prcvided by RCW 62A.8-102 and 62A.8-I05. Section 9.. Use of Proceeds. The principal proceeds received from the sale cf the Notes shall be deposited in the General Fund of the City and used solely for the purpose of paying the cash flow deficits in the City's General Fund resultinq from budgeted expenditures, and any interest received from the deposit or investment of such proceeds shall be applied and used solely ~or such purposes or for deposi= in the Note Fund. Any proceeds resulting from authorized temporary investments of money on deposit in the Note Fund or such investment proceeds of any of the taxes hereafter levied for payment cf the Notes and placed in the Note Fund shall be used for the sole purpose of retiring the Notes or paying the interest thereon. Section lq. ~ermi~ted Financing of ©amulative ~ash FiQ~ Deficit. Based upon the reasonably expected amounts of sales, excise and general ad valorem property taxes and other revenues to be collected in 1997 (includin~ in%'estment procee6s of the Notes) and that are expected to be available to make General Fund expenditures in 1997 (computed by treating a reasonable working -6- 01/08/97 13:26 FAX 2064479700 I FP & S ~009/028 capital reserve in an amount not exceeding 5% of the total General Fund expenditures in the prior fiscal year as not being available tc make those expenditures), the City Council finds that the principal amount of the Notes does not exceed the maximum anticipated "cumulative cash flow deficit" (as defined by Section 148 of the Internal Revenue Code of 1986, as amended (the "Code"), and applicable Treasury Regulations thereunder) expected to occur in the City's General Fund during 1997 and that is to be financed with proceeds of the Notes. SDction 11. Preservation .pf Tax Exemotion of Interest ~ MOtes. The City covenants that it will take all actions necessary to prevent interest on the Notes from being included in gross income for federal income 5ax purposes, and it will neither take any action nor make or permit any use of proceeds o[ the Notes or o~her funds of the City treated as proceeds o~ the Notes at any time during the term of the Notes which will cause interest on the Notes to be included in gross income for federal income ~ax purposes. The City certifies that it has not been notified of any listing or proposed listing by the Internal Revenue Service to the effect that it is a bond issuer whose arbitrage certifications may not be relied upon. Section 12. Small GovernmDntal ~ceDtion and Designation of. Note~ I.$suer Arbitrage. Rebate as' 'Qu.a!ified Tax-Exempt Obligations." The City finds and declares that (a) it is a duly organized and existing govern~en~ai unit of the State of washington and has general taxing power; (b) no Note which is part of this issue of Notes is a ,'private activity bond" within the meaning cf Section 141 of the Code; (c) at least 95% of the net proceeds cf -7- 01/08/97 FP & s ~OlO/O28 13:27 FAX 2064479700 i the Notes will be used for local governmental activities cf the City (or of a governmental unit the jurisdiction of which is entirely within the jurisdiction of the City); (d) the aggregate face amount of all tax-exempt obligations (other than private activity bonds and other obligations not required to be included in such calculation) issued by the City and all entities subordinate to the Cizy (including any entity which the City controls, which derives its authority to issue tax-exempt obligations from the City or which issues tax-exempt obligations on bahalf of the City) during the calendar year in which the Notes are issued is not reasonably expected to exceed $5,000,000; and {e) the amount cf tax-exempt obligations, including the Notes, designated by the City as ,'qualified tax-exempt obligations" for the purposes of Section 265(b) (3) of the Code during the calendar year in which the Notes are issued does no= exceed $10,000,000. The City therefore certifies that the Notes are eligible for the arbitrage rebate exemption under Section 148(f) (4) (D) of the Code and designates the Notes as ".cualified tax-exempt obligations" for the purposes of Section 265(b) (3) of the Code. Section 13. Undertakinq to Provide Con%inuin~ Disc.losur~. To meet the requirements of paragraph (b){5) of United States Securities and Exchange Commission ("SEC'q) Rule 15c2-12 (the "Rule"), to the extent applicable to an issue of municipal securities with a stated maturity of 18 months or less under paragraph (d) (3) of the Rule, as applicable to a participating underwriter for the Notes, the City makes the following written undertaking (the "Undertaking") for the benefit of holders of the Notes: ~27321~.02 01/08/97 18:27 FAX 2064479700 i F? & $ ~011,'025 (a) Undertaking cc Provide Notice of Material ~. The City u~dertakes to provide or cause to be provided, either directly or through a designated agent, to each nationally recognized municipal securities information repository designated by the SEC in accordam, ce with the Rule ("AIRMSIR") or the Municipal Securities Rulemaking Board ("MSRB"), and to a state infor/~ation depository, if any, established in the state of Washington (the "SID"), timely notice of the occurrence cf any of the following events with respect to the Notes, if material: (i) principal and interest payment delinquencies; (ii) non-payment related defaults; (iii) unscheduled draws on deb% service reserves reflecting ~inancial difficulties; (iv) unscheduled draws O~ cr~di~ e~hancem~n%~ r~flec%in~ ~inan¢£ai difficulties; (v) substitution of credit or liquidity providers, or their failure to perform; (vi) adverse Lax opinions or events affecting the tax-exempt status of the Notes; (vii) modifications to rights of holders of the Notes; (viii) Note calls; (ix) defeasances; (x) release, substitution, or sale of property securing repayment of the Notes; and (xi] rating changes. (b) Amendment of Undertakinq. The Undertaking is subject to amendment after the primary offering of the Notes without the consent of any holder of any Note, or of any broker, dealer, municipal securities dealer, participating underwriter, rating agency, NRMSIR, the SID or the MSRB, under the circumstances and in the manner permitted by the rule. The City will give notice %0 each NPJ4SIR or the MSRB, and the SID, of the substance (or provide a copy) of any amendment to the Undertaking a~.d a brief statement of the reasons for the amendment. (c) Benef%ciaries. The Undertaking evidenced by this Section 13 shall inure to the benefit of the City and any holder of Notes, and shall not inure to the benefit of or create any rights in any other person. (d) Termina~%pn of Undertaking. The City's obligations under this Undertaking shall terminate upon the ie~at defeasance of all o£ the Notes. In addition, the City's obligations under this Undertaking shall terminate if those provisions of the Rule which require the City ~o comply with this Undertaking become legally inapplicable in respect of the Notes for any reason, as confirmed by an opinion of nationally recognized bond counsel or other counsel familiar with federal securities laws delivered to the City, and the City provides timely notice of such terminauion to each NRMSIR or the MS.R~ and the SID. 027~217. ~2 -9- 01/08/97 FP & S ~012/028 13:25 FA~ 2064479700 i (e) Remedy for Failure to~omoly with Undertaking. As soon as practicable after the City learns of any failure to comply with the Undertaking, the City will proceed with due diligence to cause such noncompliance to be corrected. No failure by the City or other obligated person to comply with the Undertaking shall constitute a default in respect of the Notes. The sole remedy of any holder of a Note shall be ~o take such actions as that holder deems necessary, including seeking an order of specific performance from an appropriate court, tc compel the City or other obligated person to comply with the Undertaking. (~) Desiqnation of Official ...Respcn%$bie Administer UndertDkinq. The Treasurer o~ the C&~y or his or her designee (or such other officer of the City who may in the future perform the duties of the City Treasurer) is authorized and directed in his or her discretion to take such further actions as may be necessary, appropriate or convenient Eo carry out the undertaking of the City in respect of the Notes set forth in this Section 13 and in accordance with the Rule, including, without limitation, the ~ollowin~ actions: (i) Determining wheUher any event specified in Section 13(a) has occurred, assessing its materiality with respect to the No~e$~ and, if material, preparing and disseminatin~ notice of i~s occurrence; (ii) Determinzn9 whether any person other than the City ~s an "obligated person" within the meaninN of the Rule with respect to the Notes, and obtaining from such person an undertaking to provide any notice of material events for that person in accordance with the Rule; (iii) Selecting, engaging and compensatin~ designated a~en~s and consultants, inc!udin~ but not limited ~o financial advisors and ie~al counsel, to assist and advise the City in carryin9 out the Undertaking; and (iv) Ef~ectin~ any necessary amendment of ~he Undertaking. Sec.tion 14. Approval...Qf Note Purchas~ Contract. Bank of America NT&SA, doing business as Seafirst Bank of Seattle, Washington, has presented a purchase contracz (the "Note Purchase Contract") to the City offering to purchase the Notes under the terms and conditions provided in the Note Purchase Contract, which -10 - 01/08/97 13:29 FAX 2064479700 I FP & S ~013/028 written Note Purchase Contract is on file with the City Clerk and is incorporated herein by this reference. The City Council finds that entering into the Note Purchase Contract is in the City's best interes~ and therefore accepts the offer contained therein and authorizes its executior, by City officia!~. The Notes will be prepared at City expense and will be delivered to the purchaser in accordance with the Note Purchase Contract, with the approving legal opinion of Foster Pepper & Shefelman, municipal bond counsel of Seattle, Washington. Bond counsel shall not be required to review and shall express no opinion concerning the completeness or accuracy of any official stmtement, of~erin~ circular or other sales er disclosure material issued or used in connection with the No%es, and bond cou~.sel's opinion shall so state. The proper City officials are authorized and directed to do everythin_~ necessary for the prom~t delivery of the ~otes to 5he purchaser and for the proper application and use of the proceeds of the sale thereof. .Sec.t. lon !5. preLiminar;¥ offici.al Stat.e.ment Deemed Final.. The City Council has been provided with copies of a preliminary official statement dated January ., 1997 (the "Preliminary Official S~atement"), prepared in connection with the sale o. Notes. For the sole put--pose of the purchaser's compliance with S~,C Rule ~5c2-12 (b) (%) , the City "deems ~inal" tha~ Preliminary Official Statement as of its date, except for the omission of information as to offerin~ price, interest ra~e, selling compensation, delivery date and other terms of the Notes dependent on such matters. 13:29 F~ 2064479700 i FP & S ~014/023 Section ~. Effective Date. This ordinance shall take effect ten (10) days after its passage and publication. APPROVED by the City Council of the City of Bremerton, Washington, this !Sth day of January, 1997. PASSED by the City Council of the City of Bremerton, Washington, this 22nd day of January, 1997. APPROVED this Cou~.cil President day of January, 1997. ATTEST: LYNN HORT05, Mayor KATHLEEN McCLUSKEY, City Clerk APPROVED AS TO FORM: George M. Mack, Bond Counsel Publication Date: Ordinance Number: -12 - 01/08/97 FP & S ~015,/028 15:30 FAX 2064479700 1 I, KATHLEEN L. McCLUSK~Y, City Clerk of the City of Bremerton, Washington, certify that the at~ached copy of Ordinance No. is a true and correct copy of the original ordinance passed on the 22nd day of January, 1997, as that'ordinance appears on the Minute Book of the City. DATED this __ day of January, 1997. Kathleen L. McCluskey City Clerk 0273217. 01,/08/97 FP & $ ~016/028 13:30 FAX 2064479700 i CITY OF BR.EMERTON, WASHINGTON ORDINANCE NO. ~ AN ORDINANCE of ~he Ci~ of Bremenon, Washington, authorizing the issuance of tax a~ticipation notes for thc purpose of paying City expenses l~ndin~ · the receipt of general City taxes; creating a note redemption fund; providing for the sale of thos~ nctes to Bank of Americar-,"mr.., ..~,~,,..,,~_,, ~ [NT&SA~, doin~ busines Semeirst f Seattl Washingt $ sS Bank o ~ ,lanuary 15,. 19$~ Passed'ill lanuary I2'2__!1, This document was prepared by: Foster Pepper & Shefelman 111 Third Avenue, Suite 3400 Seattle, Washington 98101 (205) 447~400 01./08/97 13:31 FAX 2064479700 i FP & S ~017/025 CITY OF BKEMERTON, WASHINGTON ORDINANCE NO. AN ORDINANCE of the City of Bremerton, Washington, authorizing the issuance of tax anticipation notes for the purpose cf paying City expenses pending the receipt of general City taxes; creating a note redemption fuad; providing for the sale of those notes to Bank of America ~,,m~ ~,~ , ~ [NT&SA1, doing business as Seafirst Bank of Seattle, Washington[; """ WHEREAS, the City Council of the Cis' of Bremenon, Washington (the "City"), finds that the periodic collections of sales, excise and general ad valorzm taxes and other revenues in 1997 will not be sufficient to meet necessa~ City expenses as they are incurred in 1997, and ttm it is in the best interest of the City to contract short-term debt pursuant to chapter 39.50 RCW to pay those expenses pending receipt of taxe~ and other revenue collected by the City; NOW, THEREFORE, THE CITY OF BRE.MERTON DOES ORDAIN: Section 1. ~ t__~. The preliminary assessed valuation of the taxable property of the City as ascertained by the last preceding assessment for City purposes for the year 1996 for tax collection in the year 1997 is $1,302,580,919 and the City as of November 30, 1996, had $10,300,910 of outstanding general indebtedness evidenced by limited tax general obligation bonds and notes and tax anticipation notes incur, ed within the limit of up to 1-I/2% of the value of the taxable property within the City permittecl for general municipal purposes without a vote of the qualified voters therein, and unlimited tax general obligation bonds in the principal amount of $1,710,000 within the limit of up to 2-1/2% of the value of the taxable property within the City for general capital purposes issued pursuant to a vote of the qualified voters of the CID', and the amount of indebtedness for which the notes are herein authorized to be issued is 0273Z$7.02 10.2- 01/08/97 13:31 FA[ 2064479700 1 FP & S ~018/028 $1,250,000. The general indebtedness to be incurred shall be w~thin the limit of up to 1-1/2% of the value of the taxable property wit., ~hJ~ the City permitted for general municipal purposes without a vote of the qualif'led voters therein. Section 2. N..ote Fund; Authorization an.d Deseripti.o.~ of Note~. There is created in the office of the City Treasurer a special fund called the Tax Anticipation Note Fund, 1997 (the "Note Fund"). Pending the collection of sales, excise and general ad valorem property taxe~ levied for collection in 1997 and other revenues amicipated to be received in 1997, the City shall issue and ~ell its tax anticipation notes to be designated Tax Anticipation Notes, 1997 (the "Notes"), in the principal amount of $1,250,000. The Notes shall be dated February 1, 1997; shall mature on ~lanuary 31, 1998; shall be in the denomimtion of $50,000 or any integral multiple thereof; shall be numbered separately in the mariner and with any additional designation as the Note Registrar (collectively, th~ fiscal agencies of the State of Washingnon located in Seattle, Washington, and New York, New York) deems necessary for purposes of identification; and shall bear interest at the' rate of. % per annum (computed on the basis of a 360-day year of twelve 30-day months), payable at maturity. Ifar~y Note is not redeemed when properly presented at its maturi~, Men interest shall continue to accrue at the same rate from and after maturity until that Note, with interest, i$ paid in full or until sufficient money for such payment in fall is on deposit in the Note Fund and the Note has been called for redemption. The City Council declares and finds that the fax~ag of the above interest rate is in the best interests of the City, The Notes shall be general obligations of the City. The Notes shall not be subject to redemption prior to theix maturity date. Section 3.. Re~istrati0rl .~.nd Transfer of Notes. The Notes shall be issued only in registered form as to both principal and imerr.~st and shall b¢ recorded on books or r=corch maintained by the Note Registrar (the "Note Register"). The Note Register shall contain the 0~'r$21'L0z -2- 01/08/97 FP & S ~019/028 13:32 FAX 2064479700 name and mailing address of the owner of each Note and the principal mount and number of each of the Notes held by each owner. Notes surrendered to the Note Registrar may be exchanged for Notes in any authorized denomination of an equal aggregate principal amount. Notes may lac transferred only if endorsed in the manner provided thereon and surrendered to tl~ Note Registrar. Any exchange or transfer shall be without cost to the owner or transfers. The Note Registrar shall not be obligated to exchange or tramfer any Nme d~ring tl~ 15 days preceding thc maturity date. ~¢~tion 4. Payment of Notes. Both principal of and interest on the Bonds shall be payable in lawful money of the United States of America upon prese:atation and surrender of the Notes by the registered owners at either of the principal offices of the Bond Registrar at the option of the owr~rs. ~, Pledge of. Taxes. The Notes shall be paid solely from the Note Fund. The City irrevocably pledge~ to budget and levy taxes within the constitutional and statutory tax limitations provided by law without a vot~ of the electors of th~ City on all of the taxable property in the City in an amount sufficient, together with other money legally available and to be used therefor, to pay the principal of and in,.erest on the Notes at maturity. The City further irrevocably pledges to set aside and deposit into the Note Fund from ~ch taxes and other mopey on or before the matttrity dat~ of the Notes an amount sufficient to pay, both principal and interest, and redeem the Notes on their maturity date. The full faith, credit and resources of the City are pledged irrevocably for the payment of the principal of and interest on the Notes. Sec.tign 6. F_orm .and Execution 9f Notes. The Notes shall be printed, typed or multicopied on good bond paper in a form consistent with the provisions of this ordinance and 01/08/97 FP & S ~020/028 13:35 YAI 20844?9700 state law, shall be signed by the manual or facsimile signature of the City Treasurer, and shall have thc seal of the City or a facsimile reproduction thereof impressed or printed thereon. Only Noms bearing a Certificate of Authentication in the following form, manually signed by the Note Registrar, shall be valid or obligatory for any purpose or entitled to the benefits of this ordinance: CERTIPICAT~ OF AUTHENTICATION This Note is one of the fully registered City of Bremerton, Washington, Tax Anticipation Notes, 1997, described in the Note Ordinance. WASHINGTON STATI~ FISCAL AGENCY Boml Registrar By Authorized Signer The authorized signing of a Certificate of Authentication shall be ccrnelusive evidence that the Notes so authenticated have been duly executed, authenticated and delivered and are entitled to the benefits of this ordinance. If any officer whose facsimile signature appears on the Notes ceases to be an officer of thc City authorized to sign notes before the Notes bearing his or her facsimile signature are delivered or issued by the City, those Notes nevertheless may be issued and delivered and, when issued and delivered, shall be as binding on the City as though that person had continued to be an officer of the City authorized m sign notes. Any Note also may be signed on behalf et the City by any person who, on the actual date of signing of the Note, is an officer of the City authorized to sign bonds, although he or she did not hold the required office on the date of issuance of thc Notes. .Section 7..~[~._]~,i~I~. The Note Registrar shall keep, or cause to bc kept, at its principal corporate trust office, sufficient books for the registration and tm-_sfer of the Notes, 0273217,02 -4- /05 01/08/97 13:33 FAX 2064479700 I FP & S ~021/028 which shall b~ open to inspection by the City at all times. The Note Registrar is authorized, on behalf of the City, to authenticate and deliver Notes transferred or exchanged in accordance with the provisions of the Notes and this ordinance, to serve as the City's paying ag¢nt for the Not¢,s and to can'y out all of the Note Registrar's powers and duties uncut this ordinance and City Ordinance No. 3862 establisb~ a system of regisumtion for the City's bonds and obligations. The Not~ R~gistrar slmll 1~ mspomiblc for its repres~atatiom contairml in ~e No:c Registrar's Certificate of Authentication on the Notes. The Note Registrar may becora~ the ow~r of Notes with the same fights it would have if it were not the Note R~gistrar and, to the extent permitted by hw, may act as depository for and permit any of its officers or ~d/rectors to act as meml~rs of, or in any other capacity with resl~Ct to, any committee form~ to protect the rights of NoU: owners. Section 8. Notes NeEotiab, l.e,. The Notes shall be negotiable inslrumen~s Io thc extent provided by RCW 62A.$-102 and 52A.8-105. ~ction 9. Use of PrQc~eds,. TI~ principal proceeds received from th~ sale of the No~es shall be deposi~l in the General Fund of ~h¢ City and used solely for the purpose of paying cash flow deficits in the City's General Fund resulting from bud§e~ed expenditures, and any in~r~t received from the deposit or investment of such proceeds shall be applied and used solely for such purposes or for deposit in the Note Fund. Any proceeds resulting from authorized temporary invesunents of money on deposit in the No~e Fund or such invesUnent proceeds of any of the ~x~s hereafter levied for paymen! of ll~ Notes and placed in the Note Fund shall be used for the sole purposc of retiring the Notes or paying the interest thereon. Section 10. Perrait~ed Financin~ of Cumulative Cash FI,ow Deficit. Bas~ upon the reasonably expecled amounts of sales, excise and general ad ~lorem property taxes and ether revenues ~o be collected in 1997 (includi~ inveslmcnt proceeds of the Notes) and that are 01/08/97 13:34 FAX 2064479700 1 FP & S ~022/028 expected to be available to make General Fund ex~nditures in 1997 (computed by treating a reasonable working capital r~s~we in an amount net exceeding 5 % of tbe total General Fund expenclitur~ in the prior fm~xl year as not being available to ma~ those expenditures), the City Council finds that thc principal amount of thc Notes docs not exce_-xi the maximum anticipated "cumulative cash flow del'mit" (as defined by Section 145 of the Interml Revenue Code of 1986, as amended (the 'Code"), and applicable Treasury Regulations thereunder) expected to occur in the City's General Fund during 1997 and that is to be finance, ti with proceeds of thc Notes, Section 11. P. mserv~tion Of Tax Exemption of Interest on N.otes. The City covenants that it will take all actions neccssa~ to pr~vertt interest on the Notes from being incIudccl in gross income for f~eraI income tax purposes, and it will neither take any action nor make or permit any usc of proceeds of the Notes or other funds of thc Cit)' treat~cl as pmc(~:ls of the Notes at any time during the term of the Notes which will cause interest on the Notes to be included in gross incort~ for federal income tax purposes. The City cm'tifies that it has not b~en notifiecl of any listing or proposed listing by the Internal Revenue Service to the effect that it is a bond issuer whose arbitrage certifications may not be relied upon. Section 12. Small .G. qvernmcntal Issuer Arb.irrat, e Rcbate..Exccption and Designatio. n of Note.s..as "Qualified Tax-Excmvt Ob.l.il~ations." The City finds and declares that (a) it is a duly organized and existing govcrm-nental unit of the Siam of Washington and has general taxing power; (b) no Note wkich is part of this issue of Notes is a "private activity bond" within ~e meaning of Section 1,~I of the Code; (c) at least 92% of the net proc~ds of thc Notes will be used for local governmental activities of the City (ct of a go',,ernmcntal unit the jurisdiction of which is entirely within the jurisdiction of the City); (d) th~ aggegate face amount of ali tax-exempt obligations (other than private activity bonds and other obligatiom not required to be included in such calculation) issued by the City and all entities subordinate to thc Ciw 027)217.gZ -6- /07 01/08/97 FP & $ ~023/028 13:35 FAX 2064479700 I (including any entity which the City controls, which derives its authority to issue tax-exempt obligations/'rom the City or which issues tax-exempt obligations on behalf of the City) during the calenda~ year/n which fl~e Notes are issued is not reasonably expected w exceed $5,000,000; and (e) the amount of tax-ex~mpt obligations, including the Notes, designated by the City as "qualified tax-exempt obligation.s" for the purposes of Section 265(b)(3) of the Code durk~ the calendar year in which the Notes ~rc issued does not exceed $10,000,000, Thc City therefore c~rtifies thai thc Notes are eligible for the arbiWage rebate exemption under Section 148(f)(4)(D) of the Code and designates the Notes as "qualified tax-exempt obligation" for the purposes of Section 265Co)(3) of the COde. Section 13. Undertaking to Provide .Confinuin_~ Disclosure. To meet the requirements of paragraph (b)(5) of United States Securities azxl Exchange Commission ("SEC") Rule 15c2-I2 (the "Rule"), to the extent applicable to an issue of municipal s¢curkies with a slated maturity of 18 months or less under paragraph (d)(3) of the Rule, as applicable to a parti¢ipati~ underwriter for thc Notes, the City makes the following written undertakhlg (th~ 'Unde~aking") for the benefit of holders of the Notes: (a) Undertaking ~o Provide N0.tice of Ma..mrial Even~. The City undertakes to provide or cause to be pro~ded, either directly or through a designated agent, to each nationally recognized municipal securities in.format/on repository desig~ted by the SEC in accordance with the Rule ("N-RMSIR") or the Municipal Securities Rulemaking Board ('MSRB"), arid 1o a state illformafion depository, if any, established in the slate of Washin/ton (the "SID"), timely notice of the occurrenc~ of any of the following events with respect to the Note. s, if material: (i) principal and interest payment delinquencies; (ii) non-payment related defaults; (iii) unscheduled draws on debt s~rvice reserves reflecting financial dilT[culties; (iv) unscheduled draws on credit enhancements reflecting financial difficulties; (v) substitution of credit or liquidity t~wvidcrs, or their failu,--'~ to perform; (vi) adverse tax opinions or events affecting the tax-exempt stares of the Notes; (vii) modificafio~ to fights of holders of the Notes; (viii) Note calls; (ix) defeasances; (x) release, substil~tion, or sale of prot~rty securing repaymenl of the Holes; and (xi) rat/nl changes. ~217.07. -7- 01/05/97 13:36 FAX 2064479700 FP&S 024/028 C~7~217,02 (b) Amendment of Urlclenakin~. The Undertnklng is subject to amendment after the primary offering of the Notes without th~ consent of a~ny holder of any Note, or of any broker, dealer, municipal securities dealer, participating underwriter, rating agency, NRMSIR, the SID or th~ MSRB, under thc circumstances and in the manner permitted by the rule. ~ City will give notice to ~ch NRMSIR or the MSK1L and the $ID, of the substance (or provide a' copy) of any ~nendment to the Undertaking am a brief stmement of the reasons for the amendment. (c) _t~..n¢fic. l,aries. The Undertaking evident, ed by ~ gection 13 stroll inure to the benefit of the City and any holder of Notes, and shall not inure to the benefit of or create any rights in any otter person. (d) Termination of Uncl~..rtnldni. The City's obligations under this Undertaking shall terminate upon the legal defeasanc~ of all of the Notes. In addition, the City's obligations under this Undertaking shall t~-vrninate if tho~e provisiom of the Rule which require the City to comply with this Undcmking become legally inapplicable in respect of the Notes for any m~son, as conf'mned by an op/nion of na~iomlly recognized bo~ counsel or other counsel familiar with federal s~curities laws delivered to thc City, and the City provides timely notice of such u:rmimrion to each NRMS1R or th~ MgRB and the $ID. (e) R~medy..for Failule t.o Comply .with Undertakins~. As soon as practicable aher the City learns of any failure to comply with th~ Undertaking, the City will proceed with due diliger~.e to cause such noncomplim~e to be corrcct~d. No faille by the Ci~ or other obligated person to comply with the Undert~ sh~ll constiVate a default in resp~t of the No~. The sole remedy of any holder of a Note sl,~ll be to r~ke such actions as that holder deems necessary, including s~king an order of specific performance from an appropriate court, to compel the Cit~ or other obligated person to comply with the Undertaking. (f) De_$i_~'~rion of _Official Res!~nsible tO A.dmi~ster Under*affdr~. The Treasurer of the City or his or her designee (or such other officer of the City who may in the future perform the duties of the City Treasurer) is authorized ~ud direcuxl in his or her discretion to rake stroh further acriom as may be n~cessary, appropriate or convenient to carry out tl~ Undertaking of the City in respect of tl~ Notes set forth in this Section 13 and in accordance with the Rule, including, without limitation, the following actiom: (i) Determining whether any event specified in Section 13(a) has occurred, assessing i~ materialky with respect to th~ Notes, and, if material, preparin~ and disseminating notice of its occurrence; (ii) D~trrmining wh~ther any person other than the City is an "obligated person" within the meaning of the Rule with respect w the 01/08/97 13:3§ FAX 2064479700 1 FP & S ~025/028 Notes, _a___nd_ obtaining from such person an undertaking to provide any notice of material e,~ents for that person in accordance with thc Rule; (iii) Selecting, engaging and compe~a~g ~esignated agents and consultants, including but not limited to financial advisors and legal counsel, to assist and advise the City in carrying oul the Undertaking; and (iv) Effecting any necessary amendment of the Undertaking. Section_ 14. A_~_roval ol NoB Pttrchase C. ontract. Ban of America .... , A, INT&SA~I, doing business as Seaftrst Bank of Seattle, Washington, has presented a purchase contract (the 'Note Purchase Contract') to the City offering to purchase the Notes under the terms and conditions provided in the Note Purchase Contract, which wrinen Note Purchase Contract is on file with the City Clerk and is incorporated herein by mis reference. The City Council finds that entering into the Note Purchase Corm'act is in the City's best interest and therefore accepts the offer contained therein and authorizes its execution by Ci~ officials. The Notes will be prepared at City expense and will be delivered to the purchaser in accordance with the Note Purchase Contract, with the appro,~ing legal opinion of Foster Pepper & Shefelman, mn-lcipal bond counzel of Seattle, Washington. Bond counsel shall not be required to review and shall express no opinion concerning the completeness or acctwacy of any official statement, offering circular or other sales or disclosure material issued or used in connection with the Notes, and bond counsel's opimon shall so state. The proper City officials are authorized ~d directe~l to do everything n~essary for the Prompt delivery of the Notes to the purchaser and for the proper application and use of the proceeds of the sale thereof. Section 15. Preliminary Qfficial Stater0ent Deemed Final. The City Council has been provided with copies of a preliminary official statement dated January , 1997 (the 'Preliminary Official Statement"), prepared in connection with the sale of the Notes. For the 0~7~217.0l -9- I10 01/08/97 FP & $ ~026/028 13:37 FAX 2064479700 sole purpose of the purchaser's compliance with SEC Rule 15c2-12(b)(1), the City "d~ems final" that Preliminary Official Statement as of its date, except for th~ omission of information as to offering price, interest rate, selling compensation, delivery date and other terms cf ~e Notes dependent on such mat~ers. ~ Section 16. Effective Date{ ^~: ..... +~-- -~--+ :-----~.~; .... ' ....... ~ ~ Th!.~ ordinate shall take effect ten (10) days af.terl i~ passage aad publication. fAPPRO.¥E,D by the Ci,tv Council of the City of Bremerton, Washington. this 15th davy of Jnnu.,a. rv. 1997.] l:ASc~r~ f~x~ A x.',~,,e~ ~. ~., the Ci~ Council ofth~ C~ty of Bremettoa, Wa~h~gton, · i$ ~ f~ndl day o~ lanuary, APPROVED this _ day of January, I997. Council President ATTEST: LYNN HORTON, Mayor KATHLEEN McCLUSKEY, City Clerk APPROVED AS TO FORM: -10- /11 01/08/97 FP & $ ~027/028 13:38 FIX 2064479700 I C-torte M. Mack, Bond Counsel Publication Date: O~dinance Number: 01/08/97 13:38 FAX 2084479700 1 FI:' & $ ~028/028 I, KATIq].I:]:-N L. McCLUSKEY, City Clerk of the City of Brcmerton, Washington, certify that the attached copy of Ordinance No. is a true an~ correct copy of the original ordinance passed on the _{:5~ [Z2nd] day of January, 1997, as that ordinance apl~ars on the Minute Book of the Civ]. DATED this ~ day of January, 1997. Karhl~a L. McCluskey City Clerk 0273217.02 CITY OF BREMERTON 1997 GENERAL FUND CASH FLOW PROJECTION Thousands 2000 1500 1000 500 0 -500 -1000 DEC JAN FEB MAR APR MAY JUN JUL AUG SEP I+PROJECTiON I OCT NOV DEC i PRELIMINARY OFFICIAL STATEMENT DA TED JANUARY 14, 1~? NEW ISSUE NEGOTIATED RATING; Not Applied For In the ol~lnk~n of 8ond Counsel, assuming c<;mpllance by the Gty wi!Il appilco~le re(~utrement$ al' me ~femal Flevenue Code of amendod, Including arbitrage [equ/.renlents, interest on the Notes I~ excluOecl from gross lncOn'e ~f registered owners for !ede~al tax I~urpo~e$ under 9xlst/ng federal law an~l Is not a~ ~,m of.~3x p..rOleron, ce for purl~oses o! the alternative mi~t,'num tax apptica~le to tncl~v~luals, HOweVer, while I~te~$t on the Nole$ a so ~ not an ~tem o~ tax p~eference for purposes o~ the al~matlve mlrJmum tax apl~llcaflle to corpora#ohs, Interest o/1 the ~lot~s recel~od by corporatior~ Is taken Into eccount In the computation of ad/u~te¢t earnings for purpo$o~ of the alter~atlve minimum tax appfl¢~t~le to co,,poratto~,s, /ntere,,~f on the Notes recelveci ~y certain, corporations may be subject to an ~lvfronrJler}lal tax, I~teresr On the Notes tocolvt,¢l fly certain $ corporations mey be subject to fax anti interost Notes r~celved by foreign ¢or~ora#ons w~lt Untrod Stales t~ranche$ may t~e subject to a ~crelg~. 6ranct~ profits tax. Receipt of interest on the Notos may have o~.e! federal tax consequences for certain texpavors. Sea the captions *TAX EXEMPTION" arid "CEF~TA~N OTHER FEDE,~4L TAX CONSEQUENCES" herein. CITY OF BREMERTON KITSAP COUNTY WASHINGTON $1,250,000' TAX ANTICIPATION NOTES, 1997 DATED; February 1, 1997 DUE: January 31, 1998 The Notes will be issued in fully registered form in the denomination of $50.000 or integral mulltiples thereol. Principal of and interest on the Notes will be paid by t.he Fiscal Agent al the State of Washington (the "Paying Agent"), currently The Bank of New York, New York, New York, and Wells Fargo Bank, National Association, Seattle, W~shington upon presentation and s~rrender of the Notes al maturity, Due ~ Rate~ J~nuar/31, 1998 $~ ,250,000 % Pdca The Notes will not be subject to redemption prior to their staled maturity. The Notes are direct and general obligations cf the City. For as long as shy of the Notes are outstanding, t.'~e City irrevocably pledges to low taxes annuatly available to it without a vote of the electorate residing therein on all of the taxable prope.,ty within the City in an amount sufficient, together with other money legally available and to be used therefor, to pay when due the principal of and interest on the Notes, and the full faith, credit and resources of th~ City are pledged Irrevocsbly for the annual levy and co!lection of those taxes and the prompt payment of the principal of and the interest cn the Notes. See "SECURITY" herein. The City has designated the Notes as "quaiif,ed tax-exempt obligations' for banks, thrift institutions and other financia{ Institutions, See "CERTAIN OTHER FEDERAL TAX CONSEQUENCES" herein, The approving legal opinion o~ Foster Pepper & Shefelman, Bond C~unsel, Seattle, W~shington, delivered with the Notes, The closing of the Notes Is expected to occur on February 1, 1997, The Notes i,'~ definitive form will be ready tar delivery at the facilities of. The Depository Trust Company in New York, New Yort(, on or around February 2, 1997. This cover page contaills certain information fo/' quick reference only. It is not a summary of this Issue. Investors must read the entire Official Statement to obta/n information essential to mak/~g an informecl investment decision. JAN-- 8--9? WED I ? : $ I SE~F I RST O~P ! TA~- MRKT$ P ~2 Representations Neither the City nor the Underwriter has authorized atly dealer, broker, salesper.con or othe~' persons to give any information or make any representations other than those made in this Preliminary Official Statement, and, if given or made, such other information or rept'csentations must not be relied upon as having been authorized by the,,,City os the ~,nderwriter. This Prelimi,mry Official Statement does not constitute an offer to a,A1, nor shall there be any sale of the Notes by any person in any jurisdiction in which it is unlawful for such person to make such a ,,;ale. The information contained iii this Preliminary Official Statement has bccn obtaincd fi'om City O£ficials and other sources believed to be reliable. Neither a representation, warranty nor guarantee is made by the Underwriter as to the accuracy or completeness of any infer'marion in this Preliminary O£fieml $ 'a<ment and nothing contained in this Preliminary Official Statement is or shall be relied upon as a p~'omise or representation, by the Underwriter, The delivery of this Preliminary Official Statement does not imply that the reformation contained herein is co~'r¢ct as of any time subsequent to the date of the Preliminary Official Statement as shown on the cover page. Disclosure Statement The City will deliver to the Underwriter at the time of delive::y of the Notes a signed statement substantially to the effect that this Preliminary Official Statement, aa of its date and as of the date of the Notes, neither contains any untrue statement of a material fact nor omits to state any material fact nec¢$~ry to make the ~tatements thereby, in light of ~he circumstances under which they were made, not misleading in any material respect and that there has not been any, material adv.e, rse change in the normal operations or financial condition of the City nor, to the best of the City s knowledge, in the general economy of the City since the date of the Preliminary Official Statement. Secondary Market It has been the practice of the Und, crwrlter to maintain a secondary market in municipal securities which it sells. The Under'writer intends to engage in secondary market trading of th~ Notes, subject to applicable securities laws. The Underwriter, however, is neither obligated to engage in ~econdafy trading nor to repurchase any of the Notes at the fequest of the registered owners thereof and no assurance can be given that a mcondary market for the Notes will be availabte. In com'tection wlth rlte offering of the Notes, the Underwriter may over-allot or effect transactio..n.,s tha,,t stabilize or maiatatn the nmrket pNce of thy, Notes at a level above that ~,hich might otherwise prevail itt the open market. Such slabiliz~tg, i~ 'com~nenced, may be discontinued a~ any time. Thi$ Preliminary Official Statement, as of ira',date, has been "deeEwd final" by tlte City for purposes of SEC Rule 15c2-12(b)(1) but i.~ subject to revision, a~ncndment, and completion in a fiaal Official Statement which will be available witldn seven busines.~ days of the sale date. 14ELD =42 SEAFIRST CAPITAL MRKT$ Lynn Herren Suhn Law Al Colvin David Fart' Sherril Huff-Menees Cecil McConncll Carlos Montgomery Richard Neville Lon Overson Robert Winters CITY OF BREMERTON KITSAP COUNTY, WASHINGTON MAYOR CITY COUNCIL Chairperson Member Member Member Member Member Member Member Member Term Expires December 31 1997 1997 1997 1999 1997 1999 1999 1997 1999 1997 Richard Hanna Kathlcen McCtuskey John Koch APPOINTED OFFICIALS BOND COUNSEL Foster P~p?er & She£elman Seattle, Washington Treasurer Administrative Services Director/City Clerk Auditor Attoraey UNDERWRITER 'Bank of America NT&SA doing business as Seafirst Bank ("Seafirst Bank") Capit~ Markets Division Seattle, Washington iii 8--97 WED 16:42 SEAFIRST CAPITAL MR K ~,,,$. P . 0~ TABLE OF CONTENTS l'n~roduction ........................................................................................................................... I~cription at' the Notes ....................................................................................................... t Authorization ........................................................................................................................ Purpose .................................................................................................................................. Failure to Rcdc~m t~ Notes ................................................................................................. 2 Debt Payment R~ord ........................................................................................................... 2 Future Financing ................................................................................................................... 2 Assessed Valuation Detenninatlon ....................................................................................... 2 Tax C~ltection P~edure ...................................................................................................... 3 Authorization of ~bt ........................................................................................................... 3 General Obligation Indebtedness .......................................................................................... 3 Limits on Amount of General Obligation Indebtedness ....................................................... 4 Authorization of Shod-Term Debt ........................................................................................ 4 T~ing Powers and Limitations ............................................................................................ 5 Auditing of City Finances ..................................................................................................... Net D~rect Debt and E~timated Net Overlapping Genen~l Obligation ~bt ......................... 6 Bonded Debt Ratios of thc City ............................................................................................ 6 Statutory Debt Limi~ ~lculation .......................................................................................... 7 Tax Collection Record of the City. ...................................................................................... 8 Property Tax Rates ................... ~ ............................................................................................ Comp~ative Statement of Gcncr~l Fund Revenues and Expend[tums ............................... 9 General Fund Budgeted Expenditure~ 19~ and 1997 ......................................................... City Profile ............................................................................................................................ t Schedule of General Obligation Band Debt Service for the City ......................................... Genel'al and Economic Information ...................................................................................... Presecvation of Tax Exemption ............................................................................................. 17 Federal Incom~ Tax Exemption ............................................................................................ i 7 Ceaain Ot~r Feder~ Tax Consequences ............................................................................. i Absence of Material,Litigation ............................................................................................. i9 CUSIP Numbers .................................................................................................................... 19 Approval of Bond Counsel ................................................................................................... 19 Continuing Disclosure ........................................................................................................... 19 Undel~riting ......................................................................................................................... 20 Concluding Statement ........................................................................................................... Form of Lcgal Opinion .................................................................................................. Appcndix A .JAN-- WED 16:45 SEAFIRST CAPITAL PRELIMINARY OFFICIAL STATEMENT CITY OF BREMERTON Kitsap County, Washington $1,250,000 TAX ANTICIPATION NOTES, 1997 INTRODUCTION The.City of,,.B,,tem~,~on, Washin. Don (thc "City"), a municipal corporation duly organized and exis?g unaer ant: oy virtue o! the laws of the State of Washington, furnishes this Official Statement in connection with the offering of $1,250,000 I~rincipal amount of Tax As:ticir~ation Notes, 199'7 (the "Notes"), This Official Statement provides kqformation concerning the City and the Notes, DESCRIPTION OF THE NOTES Principal Amount, Dates, Interest Rates, and Maturities The Notes will be issued in the principal amount of $I,250,01N) and will be dated and bcgr intcrest from February 1, 1997 until their stated maturity. The Notes will mature on Janu,"a'y 31, 1998, and will bear interest, payable at maturity, at the rate of % per annum. Interest on the Notes will be computed on the basis of a 360-day year of twelve 30.day months. Optional Redemption The City has not rc.qcrved tl~c right to redeem the Notes prior to maturity. Form and Denombmtlon Thc Notes wilt be issued in fully registered form as to both principal and interest in the denomination of $50.000 or any integra[ multiple thereof. Reglstrar, Paying Agent and Transfer Agent Principal of and interest on the Notes is payable in lawful money of th~ United States o~' America, by the Fiscal Again of the State of Washington, the ("Registrar" and "Paying Agent" and the Transfer Agent") upon presentation and surrender ut' the Notes, al. maturity, at either of the principal offices of the Fiscal Agent in $eat, tl¢, Washington or New York, New York, currently The Bank of N,ow York, New York, New York and Wells Fargo Bank, National Association, Seattle, Washington. AUTHORIZATION Thc Notes are issued ira accordance with the prov!sions of the Constitution and applicable statutes of th~ State of Washington, pursuant to Ordinance No. ~__ (the "Ordinance") of the City Council, adopted on January _, 1997. J ~H-- SEAFIRST MRKT$ P.O5 SECURITY For as long as any of the Notes are outstanding, the City irrevocably pledges to levy ~a×cs annually available to it without a vo~e of the electorate residing thcrcin on alt or the taxable property within the City in an amount sufficient, together with other mon. e.y Icg'ally available and lo ~ used therefor, to pay wh?n due the pr!,n, eipal of and interest on the Notes, and the full faith, credit and resources of the Qty arep. lcdgcd irrevocably for the annual levy and collection, of tho.qe taxes and the p~ ompt pay ment Gl' the principal of m~d the mt,~r¢.,~t Ga the Notos. PURPOSE The proceeds of the Notes,wiil be used to provide cash flow rna~agement of the City's General Fu:W revenues and expend:tut'es, in anticipation of t,he collection of general ad valorem property taxes and other money due the City's General Fund m 1997, and paying the costs of issuance and sale of the Notes, all at approved by the City Council. NOTE FUND The City has created and established in the office of the City Treasurer a special fund to be known and designated as the Ta.~, Anticipation Note Fund, 1997 (the "Note Fund") for the sole purpose of payment of the principal of and interest on the Notes. Accrued interest, if ar~y, received from the sale of the Notes shall be deposited in thc Note Fund. The City covenants to deposit in the Note Fund rm or belbre maturity amounts sufficicut, together with other monies otherwise available therein, to pay the principal of and interest duc on t~e Notes. FAILURE TO REDEEM THE NOTES If any Note i$ not rcdeerncd whet~ properly presented at its maturity, the City is obligated to pay interest on that Note at the same rate provided in the Note f,'om and after its maturity until ~l~at Note, both principal and interest, is paid in full or until suh"~cient money for its payment in full is on deposit in the Note Fund, DEBT PAYMENT RECORD The City has always promptly met priacipa! and interest pavmem$ on outstanding obligations when due. Additionally. no refunding bonds h,ve been issued lot thc purpose of preventing an impending default, FUTURE FINANCING The City has no other general obligation financing plans for 1997. ASSESSED VALUATION DETERMINATION In thc State of Washir~gton, the County Assessor (the "Assessor") detem~nes thc value of all real and t~crsonal vrooe, rtv throughout the County (including thc City) xvhich is subject to ad 'valorem taxation, The Assessor's duties and methods of determining vame m'e prescabed and controhed. by statute and by detailed regulations promulgated by the Department of Revenue of the State ot SEAFIRST CAPITAL MRKT,S Washing?n, For tax purposes the assessed value of property is s~t at 100% of its actual value. Property in Kitsap County is revalued mmually b~sed on market s~les and receives an on-site appraisal every six year~, The p:'opcrty is listed by the Asses.sot on a ts× roll u~ ils cuncnt usscsscd v~lue und the tax roll is fi/ed h~ d~e Assessor's office, The Assessor's determinations are subject to revision by the County Board of Equalization and, for certain property, subj,ct to further a'cvision by thc State Board of Equalization. After all administrative procedure~ are completed, the taxi,nS unit receive~ th, Assessor's final certificate of assessed value of property within the taxing uni,. TAX COLLECTION PROCEDURE Property taxes are levied it~ specific amounts, and ti~e ra~e for all taxes levied for all taxing cidcs in the County (including the City) are determined, ealculmed 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 eaci~ taxing City upon a tax roll which contains the total amount of taxes to be so levied and collected and assigns ~ tax account nunitx~r to each tax lot. The tax mil is delivered to the Kit, sap County Treasurer by Sanua:'y 15 of each year, and an abstract of the tax roil, showing tho 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 a~ due and payable on lhe 30th of April of each yom', but if the amount due from a utxpaycr exceeds thirty dollars ($30,00), one-half ma)' 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, thc di,dsion of the taxes among Ihe various taxing cities,, giving notice of delinquency, and collection procedure are all covered by detailed statutes. The hen for ad YMorem prope~'ty ta,'~ which have been levied prior to the filing of federal tax [ien~ is prior to such federal tax lien.,;. 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 kir=d on real or personal property subject to taxation. By law (Chapter 6.13 RCW) the taxing unit may commence fol'oclosure of a tax lien on real property after da'ce (3) years have passed since the first delinquency. Washington State's courts have not decided whelher thc Homestead Exemption may give the occupying hem, owner a right in the forced ~alc of the family residence for delinquent general prope~{y taxes to ~etain the first $30,000 of proceeds of the sale. (See Atgana vs. Shar£, 30 Wu. App. 837, 638 P.2d 62'7 (1982), holding the homestead right superior to liens for local improvement dlstrlct assessments), AUTHORIZATION OF DEBT The power et' the City to contract debt of any kind is controlled and li~ted by state law. Ali debt must be set forth in accordance with detailed budget procedures and paid for out of identii'iabl¢ receipts and revenues. The budget must be balanced for each fi~;eal year. It is unlawful for art officer or employee of the City to incur liabilities in excess of budgetary appropriations. GENERAL OBLIGATION INDEBTEDNESS Under the Constitution and statut'.cs of the State, the City may incur two ty~s of general obligation indebtedness (including. bonds). The two types...a,'~ primarily differentiated lay thc limits on the real and per, ex, al property taxe:~ which may be ,..ollected for the payment thereof. Limited tax general obligation indebtedness is payable from taxes upon ttli the taxable property in thc City w-hich may bc imposed by the City within the iirnitat, ion$ prescribed by State statute without a x. ote of the peoplo (sometimes referred to as "nOn-voted debt" or "non-voted bonds" or .YAH-- 8--9-'" W E I) 1 6 : ~ $ $ £ A F I R $ T ~AP I TAL .... "councih'nanic bonds"). The statutory limits on the lcD' of such taxes arc described in the section herein entitled "LIMITS ON AMOUNT OF GENERAL OBLIGATION INDEBTEONES$." Un!imitod tax general obligation indebtedness is payable from taxes without limitation as to rate or amount, imposed upon all taxable property in the city, Unlia,fited tax indebtedness may be incurred only after approval by 60% of the City voters at an electron in which the total vote east ex?e,ds .40% .of the v. otcs cast at the hst preceding general electi,on of the City or State. Such um~m~tcd tax ~ndebt. ednes~ is sometimes referred to as "voted debt,' "voted bonds" or "unlimited tax bonds." Bonds issued to refund outstanding general obligation indebtedness of either type may be issued without voter approval, LIMITS ON AMOUNT OF GENERAL OBLIGATION INDEBTEDNESS State statutes limit the total principal amount of all Cky 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 hrther limited to 1.5% of the value of such taxable property, The City is additionally authorized to incur general obligation indebtedness ~or thc [ollowing "special" purposes, with voter approval, in the total principal amount of up to the following perccntage~ of the actual value of taxable property within the City: wa[er, artificial light and sewers: 2.5%; open space and park facilities: 2.5%, The combination of unlimited tax and limited tax general obligation debt For all pu¢oses cannot exceed 7.:5% of the City's assessed valuation. The State statutory limits on City general obligation indebtedncs.~ described in this section are mom 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 neces~tu'y, to maintain the corporate existence of the City. In computing total general obligation indebtedness, the following "assets" may be deducted against the pr[ncil~al amount of indebtedness outstanding: (al money and investments on deposk in general obligation bond retirement funds: !bi taxes (both current and delinquent) levied for the payment of general obligation indebtedness, and (c) delinquent (but not current) taxes due the gcncml fund. In addition to limits on the total principal amount of general obligalion indebtedness described in this section, the Constitution and statutes of the State impose other limitations on the City'~ levy of taxes upon real and personal property (See sect[on heroin entitled "TAXINO POWERS AND LIMITATIONS".) AUTHORIZATION OF SHORT-TERM 13EBT As a result of 1982 legislation, any Washington,municipal corporation may borrow money and issue short4erm obligations, tl~e process of who.ch may be used for any lawful purpose, Short- term obligations may ,be issued in anticipation o~ tt~e receipt of revenues, taxes, or grants or the sale o[' (1)gcnerat obligation bond~ if thc bonds may be issued without tho consent of the voters or if previously ratified by thc voters; (2) revenu~ bonds if thc bonds have been authorized by ordinance or resolution; or (3) local improvement district bonds if the bonds have been aut,horized by ordinance or resolution. Thcs, short-term obligations shall be repaid out ~f money derived fi'om the source or sources in anticipation of which they were issued or from any money legally available for thi.~ purpose. Additionally, the City ma)' incur short-term indebtedness in the following way~: first, in an emergency, tho Council members may put a plan intu effect and authorize indebtedness outside /23 1 6 : 46 SEAF I RST CAP I TAL MRKT$ thc cun'ent budget. All expenditures for e~nergency purpose shall bc paid by warrants form any available money in thc fund properly chargeable with such expenditures. If there i~ msufficmnt money on hand'in the fund, thc w'arra'nts b,,:¢ome registered interest-bearing wan~ants. In adopting the budget for any fiscal year, thc Council members shall appropriate funds to retire any out~tanding registered warrants issued ~inc¢ the adoption of the last preceding budget. Second, thc City may, without a vote ,o.,f, the electors, purchase property on a conditional sales contract if the total contract amount, together with thc other non-voted ~cneral obligation indebtedness the City, does not exceed 3/4 of one percent of the value et' taxable property in I.l~e City; any item so purchased m~st be budgeted for payment in accordance v, ith the terms of the contract. TAXING POWERS AND LIMITATIONS Pursuant to Chapter 84.52.043 RCW, cities may levy, without a vote of thc residents residing therein, a maximum of $3,375 per thousand for genc,ral city purposes (the "reguhu' levy"). Cities with full-tim~ firemen may levy an additional $.225 per thousand to f'und the city's Fireman's Pe, nsion Fund (Chapter 41.15.060 RCW); thus creating a maximum annual levy rate of $3.60 per thousand, Thc City is currently levying $3.3573 per thousand dollars of taxable assessed valualion. A.,ccm'ding to RCW 27.12.390, any city or town annexed to a rural library district, i~land library district, or in!er-county rural library district, such as thc City, shall b~ entitled to levy up to three dollars and stxty cents pc, r thousand dollars of asscs.qed valuation less any regular levy mad~ by such library dist,'iet in the incorporated area, notwithstanding any o~hcr provision of law. A city'~ regular property taxes are ~t, bjcct to the provisions of a state statute limiting the growth of annual property taxes (Chapt. er 84.55.010 RCW). The limitation provide~q tha~ the regular property taxe.q payable in th,e following year shall not exceed one-hundred and six percent (106%) of the amount of the single hi~hcst regular levy arnount lawfully levied by the municipal entity in the thr..}}¢ immediately preceding calendar ycar~ plus an additional amount due to the incremental assc. ssed valuation increase in thc municipal entity caused by new construction and property improvements. The regular property taxes levied by a city may be increased above the 1069'o limitatio,n, upon} tlne affirmative vote of a majority of the voters residing in [}~c municipal entity at an election held for such purposes (Chapter 84.$5.050 RCW). AUDITING OF CITY FINANCES The State Auditor is required to examine the affairs of cities at lc:asr once every two years. The examination must include, among other things, the financial condition and resource~ of' thc Cit. y, wh~:ther the laws and constitution of the State, are being complied with, and the methods and accuracy of the account~ and reports of the City. Reports of the Audi!or's examinations are required to be filed in the office of the State Auditor andin the auditing department of the City. JAN-- I 6 : 4]' SEA~ ! RST CAP I TAL M~KT$ P 89 NET DIRECT DEBT AND ESTIMATED NET OVERLAPPING GENERAL OBLIGATION DEBT (As of November 30, 1996)I Direct Debt: Voted General Obligation Bonds Outstanding ...................... Non-Voted Bonds Outstanding .............................................. Non-Voted General Obligation Tax Anticipation Notes Outstanding (this issue) ..................................................... Bank Line of Credit Out~andin$ ........................................... Less: Debt. Service Fund 'Balance ........................................... Net Direct Debt ......................................................................... $ 1,710,000 9,042,700 1,250,000 8,210 _ (278.932) $ Estimated Net Overlappin9 Debt Net G,O. Debt Percent of Amoun~ of Kitsap County Port of Brerncrton Brcmcrton Sch. Dist. No, 100-C Central Kitsap Sch. Dist. No. 401 South Kit$ap $ch. Dist. No. 402 $ 51,188,140 4.11% $ 2,105,258 2,105,000 25.66 540,081 30,130,000 73,96 22,284,386 90,490,000 1.12 1,016,704 i i,694,000 .05 ..L 5,849 Esflmalted Net Overlappln9 Debt .......................................... $ Net Direct plus Estimated Net Overlapping Debt: ......................................... 11,731,973 25,952,278 37,684,251 BONDED DEBT RATIOS OF THE CiTY PrclimintW Assessed Valuation for collection Year [99'/2 .......................... $ 1,302,580,919 Estimated City Population (! 996)~ ............................................................... 38,496 Assessed Valuatiot~ Per Capita .................................................................... $ 33,837 Net Direct Debt to Assessed VaLuation ........................................................... 90% Net Direct and Estimated Overlapping Debt to Assessed Valuation ........... 2.89% Net Direct Debt Per Capita .......................................................................... $ 305 Net Direct and Estimated Overlapping Debt Per Capita .............................. $ 979 Adjusted to reflect the i~suane¢ o,e rl~e Not**. Preliminary a~ses~cd valuation I'or tax collection year 1~7 is stated as [~ full a~$cssc{ v~luc of all taxable real ~nd pmpcay in th~ City. Source: Washington ~tnt~ Ol'fi¢~ t,l' Fin;~cial Munng~m~nt (August 1996). 6 8-- 9 ? WED 16 = 5=--' S EA F I R S T C A P I TA L P. 02 STATUTORY DEBT LIMIT CALCULATION (As cf November 30, 1996)I Pretlmlnary Taxable 1996 Assessed Valuation for Collection year 1997 ............ I1. General Purposes a. Non-Voted lndebtedaess (1.5% of Valuation) Limit ..................................................................................................... L s3: on-¥o;ea Bonds Outstanding ............................................... Less: Noa. Veted Notes ~uts~a~ding (t~ Notes) ............................. Less: Bank Line of Credit Outstanding ............................................. Plus: Cas~ and lnvesunenu la Debt Service Funds .......................... Remaining Capacity for General Purposes (Nonvoted) .............. b. Voted Indebtedncss (2.5% of Valuation) Limit ..................................................................................................... Less: Voted Bonds Outstanding ........................................................ Less: Non-Voted Bonds Outstanding ............................................... Le~: Non. Voted Notes Outstanding (the Notes) ............................. Less: Bank Line of Cradit Omstanding ............................................. Plus: Cash and Investments in Debt Service Funds ......................... Remainit~g Capacity tm' General Purposes (Yotc4) .................... Utility Purposes (2,5% of Valuation) Limit ..................................................................................................... Outstanding .......................................................................................... Remaining Capacity for Utility Purpcscs ................................... Ill. Parks and Open Space Purposes (2.5% of Valuation) Lhnk ..................................................................................................... Ou[~[and[ng .......................................................................................... Remaining Capacity fo~ Pm'ks and Open Space Purposcs .......... $I,302,580,919 $ 19,538,714 (9,042,700) (1 ($,210) $ 9,237,8O4 $ 32;564,523 ( 1,710,000) (9,042,700) 2.50,000) ($,210) $ 32,564,523 32,56a,523 $ 32,56a,523 q $ 32,564,523 I Adjust~:d ;o refk,'ct the issuance or' the Notes, /2.6 .lAN-- ~)-- 9 7 WED ! 6 : 5 4 $ E F~ F I R $ T CAP ! T....A. C M R K T $ P . 0--~. TAX COLLECTION RECORD OF THE CITY Taxable Collection Assessed Tax 1997 $ 1,302,580,9193 N/Aa 1996 1,223,940,521 $ 4,681,638 1995 !,203,299,197 a,476,457 1994 1,169,824,600 4,!44,$73 1993 1,072,545,656 4,292,8 SS 1992 949,107,196 3,544,0!9 !991 855,620,~09 3,217,059 NOTE: Collected Year of Leyy Collected as of Amount Percent Amount N/A4 NIA4 N/Aa N/Aa N/A4 Ni,a.a N/A4 N/Al $ 4,247,668 94,88% $ 4,406,862 98.45% 3,973,275 9.5.86 4,103,~64 99.05 4, 110,011 95.74 4,284,049 99.80 3,397,651 95,~7 3,533,]98 99,70 3,071 ,~70 95.49 3,214,247 99.9 ] Tnx¢~ are due a~]d payabb on April 30, of each year. At ]ea, t One hail'et' thc tax amount duc musl be paid on or before April ~0, or else t~ total atn~nt becomes delinquent on May I. ~ second half' of tl~c t;~n duc is payable on or ~forc Oc;uL~r 31, becoming delinquent Nove,nl~r 1. PROPERTY TAX RATES~ (Rates In Dollars per $1,000 of Assessed Valuatic.~) City School Emergency Levy General City City State Kltsap Port of District No. Medical Regional Year Fund_ Bonds 1996 $3.3573 5.2255 $ 0 $3.4;~4~ $1.6347 $,42~7 $5,1551 S.0939 $,2500 5.4677 $15.0977 1995 3.2470 .2308 0 3.5508 1,224.9 .4079 2.]387 .0940 .;2500 .4595 1 t.6036 1994 3.0635 ,2393 0 3.4297 1.1731 .3~397 5.0440 ,0~65 ,2490 ,4447 14. J210 1993 3.0871 .2543 .4339 3.3978 1.2383 3955 5.~31 I .0904 .2500 .4283 14.8067 1992 3,2614 ,2325 - 3.3849 1.2673 ,4184 5.3694 .0')26 ,24,~7 ,4375 14,7087 $ourcm Kit:;apCountyTrcusumr A~scsscd ~aluation is ~totcd its 0~e as~;usscd valuation cf alt taxable real and pcr>onal property in thc City, Preliminary Not avzilablc; to be collcc:cx~ t.2.7 JAN-- 8--97 WED I 6 : 54 SEAFIRST CAP I TAL MRKT$ P. 04 Revenues: Taxes Licenses & Pcrmlts ]ntc~govermncntal Charges for Services Fines & Fod~lt$ Miscellaneous COMPARATIVE STATEMENT OF GENERAL FUND REVENUES AND EXPENDITURES I (Fiscal Year Ending Deceml~er 31) 1995 1994 1993 1992 1991 Total Revenues $ 14,501.567 $ !4,137,$28 $ 13,.'M0,322 $ 12,254,300 $ [!.019,779 298,989 390,454 362,96~1 367~69 314.209 847,272 728,407 77~,927 1,199,015 1,196,3~ [ ,783,~6 1,394,R t5 1,5~J~7 1,265,887 1,200,7~ ~83,9C~ 593.093 556,447 ~79,07~ 495,2~ Expenditures: General Govcrm'nent Security of' Persons & Prop. Physical F..nvirumncm. Transportation Economic ~nvironment Mental & Physical Hcahh Culture & Recreation Redemption of Gen. L.T, Debt Debt Service Capital O~tlay $ 18,I6.1.]81 $ 17,485,269 $ 16,801,!)29 $ 15.961.452 $ 14,$6E066 Total EXd:~enditures $ 5,009,311 S 4,$43,6~6 $ $,039,4g$ $ 4,702,330 8,6! 4,262 ~1,219345 7,850,95? 7,326,703 848,346 587,931 698,08i0 655,84~ 850.639 840,530 879,838 805.8~ 454,250 514,320 ~8,~24 352,504 2~,239 2~,493 249,339 236,594 1,566,60~ 1.4~,703 1,323,2~5 I, 178,131 0 24,672 30,735 28,393 59.8(~ 44,593 18A 14 125,479 486~005 _ 385.41~ 27%J~ 228A6~ Other Fioancln9 Sources (asea) Opcratin g Trans{'crs I n Operating Transfers O~t Gcncral Fixed Assets Disposal Pmccc~q & General L.T. Debt $ 4.452.25 l 6,742,632 671231 788.332 397,279 221,670 1,!83371 0 187,110 __ 9~5.504 Tolal Other Financing Sources (Uses) $ 18,153.581 $ 17,138,317 $ 16,815,970 $ 15,539,950 $ 15,593,380 Fund Balance. January Pti~ Year's Correct[oas Residual Equity Tranfcrs Other Equity Changes TOTAL ENDIgG FUND BALANCE $ 6,000 $ 6,000 $ 6.<~30 $ 6,000 $ t07,500 (307,1136> 095,376) (236/t25) <334,764) (249, 2,8.86 59,640 0 1,893 $ (298,950) $ (323,736) $ (230325) $ 326.871 $ 1,064,g68 $ (44,548) $ 206,399 $ 2I%464 0 0 0 0 165,1281 9,717 (6,!08) (1,545) ....... (i..219) L084.98~ __~ ¢4.]49) $ 709,671 $ 1,064,368 $ {44~548~ ~. 206,401 $ 588356 $ 572,130 78317 o _ _ . 2,575 CONTINGENCY RESERVE FUND1,: YEAR-END BALANCES 1995 1994 1993 1992 1991 Ending Fund Balance $ 70,9,040 $ ?04,922 $ 387,205 S 360,5,23 $ 221,152 Source: City of Brmnerto,: Ammu:,l Fin:recital Rclm,ls. All ycac.q have bccn audited by thc Wu~hinglOn State Auditor's Money in this fund ia excess t)C ~6~,0~ is transfccrcd lo thc Ocacral Fund to tlnttnce capital perchance, /ag JAN-- 8--97 WED I 6 = 55 SEAF I RST CAP I T~L MRKTS P . 05 GENERAL FUND BUDGETED EXPENDITURES 1996 AND 1997 ', (Fiscal Year Ending December City Council ........................................................................... Executive ................................................................................ ^dminislrativ¢ Services2 ....................................................... Poii~e ~ Fire P~sion ..................................................... [ntcrgovcmmcn[al Scrv[c~ ............................................. ~sc. N~n-~p~rh~cnt~[ ................................................ Lcg~l Dcpa[tmcn[ .................................................................. Human [csourc~ .................................................................. Community Dcvcl~pmcm ...................................................... City Auditor ........................................................................... ~ublic Safe~y Polic~ Dcp~'tmcnt .................................................................. Firc Dcp~rtmc~l ..................................................................... Public W~rks Genial ~acH[tios ................................................................... E~ginecrlng ........................................................................... Transporm~;oo ....................................................................... L~isure Oe~ra) P~ks ........................................................................ 8on,or Center Pool ......................................................................................... Cemetery Serv)ces .................................................................. Ad~)cfics ................................................................................. To~a) Ourren( ~xpend~(ure~ ............................................ 1996 t 35,465 196,065 2,1E6,~07 1,228,069 11635[ 1,317395 447,358 210,582 663,$06 79,I41 5,536,247 3,365,561 5a0,464 451,903 967,350 1,o2a,459 185,439 i44,844 243,354 2.5(~,00<) L2~.$49,461 1997 $ 146,67~ 204, t62 1,915,763 1,315,057 110,9~6 1,3~9,771 460,133 222,867 700,189 84,983 5,793,222 3,571,351 454,908 466,986 977,105 1,026,!62 19~,462 154,625 264,694 69,93g 286,404 $ 22.274,473 Source: City of Btcmcrton. City Cleo'k, Trcasm'¢r and hffoemadon Services are comblncd unctcr Administtativc Survives. 10 JAN-- 8-- 9 ~ WED I 6 : 55 S E A F I RS T _~ P I T AL M R K T S P . 06 CITY PROFILE he City was incorporat:d in, 1901 and ope~'ate, s as Home Rule Charter City' with a Mayor ouncil form of governmcnt. 'I he Council is comprised of nine members, elected by district by the citizens of the City, each serving a four-year term, Thc Council Members are part-time elected officials who exemise the legislative powers of the City and determine matters at ~olicy The Mayor, a full-tnne 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 nmge of municipaI services including fire and police protection, parks and recreation facilities/activities, streets, planning, zoning and general administrative se~r,,'iccs. The City operates water, sewer and stor,nwater utility systems. Curt'early, them are 322 full-time employee~ of the City. Kc'~' P_e~o n nel Lynn Herren, Mayor: Ms. Herren began her first term as Mayor of the City in 1994. Before her ejection a~ mayor, she served for six years on the Brcmerton C. ity Council. She is the past Chair and current Boar~l Member of tlxe Kit.tap Regional ~.P, iamling Council, and a board member of Kitsap Transit, Kitsap County Cea-Corn and the Bmmerton-Kit~ap County Health Department. MS. Herren is a graduate of the University of Washington and has been a resident of the City sine, 1974, Richa,'d l.Ianna, City Treasurer: Mr. Hanna has boca thc Treasurer of thc City of Brcmcrton since 1986. Before joining the City, he. was Treasurer of the City of Centralia. Washington. Mr. Hanna received his Bachelor's Degree in Accounting f'ro~,~n Western Washington University in 1974 and a Masters of Busine~ Administration Degree m Financ, from University of Puget Sound in 1983. Mr. Hanna is a member of the Washington Financ, Officers Association, Washington Municipal Trea.qurer~ Association and Puget Sound Finance Officers Association. l_,abor Relations The City has entered into written agreements with each of the bargaining groups set forth below; agreetnents contain provisions on such mattcr.,~ as vacations, sick leave, medical and dental insurance, ~alarics, working conditions and grievance procedu,'¢s. Employees of thc City represented by bargaining units are as follows: Union Meml~er,qhip Teamsters Local 589 130 Patrohnan's As.qociation 53 Police Management Association 5 International Association of 44 Fire Fighters Local 437 Conlract._Per{,~ F. xglral:ion DittO. 3 yr. 12/31/97 2 yr. 12/31/961 3 yr. 1213 i/96{ 3 yr. 12/31/98 In accordance with State requirements, the Cit},' conducts full negotiations with all bargaining units. Thc City'.~ management con.qiders it~ rclauon.~ with employees to he satisfactory. 11 /30 J ~ ~-~-- 0-- 9 ? t-lE I) 1 6 : 58 $ E ~ F I ~ $ T CAP I T A L I"II~K T S P . 0 2 SCHEDULE OF GENERAL OBLIGATION BOND DEBT SERVICE FOR THE CITy1 (As of December 31, 1996) Year 1997 1998 i~9 20OO 2001 2002 2003 2004 2005 2006 2007 20O8 2009 2010 2011 2012 Total Outstanding Voted General Ob;lgatlon Bonds Non-Voted General Obligation Bonds TotaJ Prin¢ipa~ Interest Principal Interest All Bonds $ 165,~0 $ ]05,560 $ 365,7&1 $ 537,438 $ 1,173,77~ 195,000 ~4.655 428,769 511~,715 1,237, t39 205,000 82,369 452391 496,105 1,235,$65 155,Cg)O 71,115 480,758 471,R i5 1,178,658 ] 75,000 6055 ! 680,000 445,850 1,361,40 l i 80,000 49,0 t3 720,000 406,057 i ,355,070 200,000 36,468 760,000 363, 213 I, 359,68 I 135,000 25,261 $ IO,O00 317,252 1,287,513 145,0O0 15,739 855,0C~3 267,563 1,283,302 155,000 5,3~6 9 lO,0C~ 2 i 3,872 1,284,258 0 0 965,000 155,663 I, 120,663 0 0 275,000 92,475 367,475 0 0 290,000 75,370 365.370 0 0 315,000 57,195 372,195 0 0 335,000 37,01 ? 372,0~7 _9 0 ~ t5,537 2o0.5.~ $ i,?lO_~ $.. 546. J J? $ 8,917699 $ d,~71,137 $._..,]~,6_.44,95._~3 Docs no£ incl ud¢ tl~¢ Nolcs. 12 /31 JAN-- 8--9'7 WED I 6 : 58 $EA ~ I RS T CAP I TA L M_.P~__K__~T $ ~' . 0 ~ GENERAL AND ECONOMIC INFORMATION The City of Bremerton, is located on Pub.et Sound anm-oxJpr-,,¢h, r o , ~.~ . ,. ,: ,5 mi]es west of Seattle and 35 miles north of Tacoma, The largest city in Kitsap County (the "County"), Bremerton was incorporated in 1901 and ha~ an estima'~¢d 1,9,9_6 population or 38,496, Kitsap County, covering ,393 sq.u.a, re miles_of land, al~ includes the fei:owing other incorporated areas: Bainbridge Island (popumdon 18,350), ¥ort Orchard (population 6,610) and Poulsbo (population 6,070), Military Presence The economy of the City is closely tied to the United States Navy. The Puget Sound Naval Shipyard in Brcmcrton ("PSN$") is the largest Naval shipyard on the Pacific Coast and is thc only West Coast shipyard capable of working on nuclear ships. With 9,395 civilian employees, d9,758 m!lit~u'y, personnel, and 225 contrac, tors, the shipyard is also the only facility capable of ¢c,o_mmm~onmg and ,tceyc!ing nuclear suomarines which are ~¢ing disassembled in accordance witt~ t/trategic Arms Ltmitauons Treaties. The economic impa. ct of PSNS locally is $700 miliJon per year. The Naval Supply Center is another local military tacility in the City, with about 200 employees, Located a few miles north of the Cit.,y of Bremerton is the Naval Submarine Base at Bangor. The B, a..s?..serves as a home bas.e, for Trid~:nt ~ubmarines and provides employment to 3,111 civilian~. ^aaifio.,nally, :5,600 military and 1,665 contracted personnel are, employed at the Base. As the only operational base of its kind on the Pacific Coast., it is considered to ~e very important to thc country by the Department of Defense. Annual local economic impact of Bangor is $230 million. Another military installation located n~r thc City is the Naval Under,ca Warfare l~ngia¢cring Station at Keyport. The station te~ts and maintains torpedoes, ~rovidc~ maintenance support for fire control equipment and mines, and provides other engineering.related services for undcr~ea warfare. The Undersea Warhre Station employ~ approximately 2.148 civilian, 180 military and 700 contracted personncl. Recent base closures in other gcog?phic regions outside of Washington have hadtal)°sitive impact on growth in the City and K~tsap County. PSNS will ~e the new home of Carrier Group Three staff which will arrive in 199"/with '~0 personnel and ,he USS Bridge AOE (113) now under construction, which is due to arrive in the summer of 1997 with 6~0 personnel. Current PSNS Projects In the fall o[' 1996, approximatley $39 million for four new projects was appropriated for the PSNS. These projects will increase the. workload in 199'7 by 8 to 10% over 1996, mine of which will continue in 1998. The aircraft carrier USS Nimitz, lead ship in the world's largest class of aircraft carriers, and its escort ships are temporarily h,o, meported in Bremerton. Current Navy plans have the USS Nimltz leaving the Puget Sound Area in 1997 when it becomes due for a refueling overhaul. The nuclear cruisers USS Arkansas and USS California and three combat support ships, USS Camden, USS Sacramento and the newly commissioned USS Rainier are also homeported at PSNS, Thc USS Abraham Lincoln and USS Carl Vinson, both. Nimitz class aircraft carriers, each with crews of over 3,000 personnel (net o£ air wing personnel), are currently being overhauled at the shipyard and are expeetcd to be re-homcported either in Everett or Brcmerton at the completion of th'at overhaul since their curt'ertl home por~ are being closed. There are 18 military bas~ construction/rcnovati.o,n projects in Kitsap County under construction with an estimated combined cost of $100 milhon. 'Projects include two bachelors quarters buildings with a total of 686 beds, 3i8 housing units at Bangor for support carrier families and 13 WED I 6 .' 59 SEAF I RST CAP I TAL MRKT$ P . 170 housing units n¢~r the Naval Hospital and a 1,91$.space, parking gar.~ge at the entrance to PSNS and expansion of another parking lot. Other Major Employers The Port of Bremerton (th,e, "Port") operates the Bremet'ton National Airport and the 560-acre Olympic V~w Industrial P~rk, both loca?,d approximately i0 milea southwest of the City. The park inelud,~s 22 firms which employ a total of approximately 500 people. The Port has recently been designated a foreign trade zone, which is expected to enhance international trade locally. Several companies are undergoing expansion near or adjacent to the Brcmerton National Airport, in,chding an aircraft part~ recycling, company, and an electro-mechanical products manufacturer, Which would employ up to 65 people within five ycar.q. Brcmerton National Airport is the largest airport in the County, with a 6,200-foot runway and full instrumentation and lighting ,ys~ems. Thc airport can handle all general aviation aircraft and most transport and military pl;me~. Charter passenger and air freight services are available to SeaTae Airport, the major intel'national ai~ort in the Puget Sound area. The airi>ot't i~ currently undergoing irnprovement~. Heakh car~ needs are ~ct by several facilitie.~, in the Bremerton area including ~h¢ Naval Hospital - Brcmerton wtth 389 civilian, '/09 military and 120 contracted ~mpleyccs. Harrison Memorial H~spital in Bremerton ha~ 1,300 employe¢~. In lat~ 199~, Harrison comple, tecl.a $20.5 million expansion project which doubled the number of operating rooms; expanoed ,he laboratory and administration area~; and provided additional ~pace for patient education and an outpatient mental health clinic. A number of nursing homes and retirement complexes are also located in Brcmcrton. Olympic Colleg~ i~ a two-year public community colic, ge located in Bremerton, with an enrollment of approxh'nat¢ly 4,310 (full-time equivalentsj a~d 600 employees. The coltcge offers associate of art~ degrees in four fields, as well as adult education and non-credit courses, and began a four-year degree t?rogram (col!ed "2-Plus-2") in 1994. Th~ 2-Plus-2 degree program is associated with the University of Washington, Tacoma branch, The Otympi¢ College campus will b~ expanding in the years ahead due to a private donation of 20 acres of land for that purpose near New Developments Among the projects recently completed or propo~d for development in Bremcrton are following: · A Planned Unit Development application has been ~ubmittec[ to the City for the development o1' Bremcrton's downtown waterfront, krtown ~.~ Sinclair Landing, A combination of public and priv:~t.~ us¢~ make up this 3B-acre project, including: a transit center, new ferry tcrminal, expansion of the waterfront park, expansion o~' th~ marina, a new terminal for.passenger-only ferry service, par~cmg, retail use, restauran!.% offices, an SO-room inn, a s~x-plcx cinema and multi-family housing, all connected wah pedestrian corridors. The project is expected to take three years to complete at a cost of $130 million. At this time it is not known when thi~ project will be completed, but construction is expected to begin as early as the spring of 1997, Wsh t t e s r T v r s-vc · /'he a. ing.on S at, Depot t~ nt,of Tran. po ration ( DO ) pro ides for y .ct i es between Seattle and Bremerton. Bremertoa became the headquar~.ers for all f.'~rries with rOUte, south of Seattle in 1994. DOI' is dc.qignlng a new $21.3 million ferry terminal for Bmmerton, for con~tmctlon after the year 2000. · Wal-Mart recently completed a new store in 15asr gremcrton and Port Omhard. 14 8--9T WE~ 17 : 00 SEAF I RST CAPITAL MRKTS P . 05 JAN-- · The Port of Bremerton is ~cveloping a 128~acre light industrial business complex known as West Puget Tech Proc The first phase oF the project includes the construction of a 30,000 square-foot incubator boilding on 2.45 acres with infl'a~t~cture, gomqfial employment is 85 to ~ people for this ph~e. The remainder of the pa~k wouId ~ develo~fl over a 10- year ~ri~, on a demand b~is, · A Downtown Revitalization Task Brace has been formed in Breme~xon as a volunteer group of, downtown business and government representatives and interested citizens, Its purpose is to improve th~ appearance or and bring new business and art concerns to the area, Projects to date include flower b~rels, rel~atien ct the Ki~ap Hhtorlcal Maxum to downtown Bremenon, an ~dopt-a-bl~k program, ]~al concerts and festivals. · Two Safeway super~mres were rece~tiy completer: one in East Bremctt~n, and the other in the C~ty. · The Bremerton Black E~trepreneurs As~ociation ~s reviving t~e Roxy T~eatm in downtowu Bremerton for use a~ a c~ncen hall ~nfl for other live entertainment. Sera1 cost of ~e project is $3 ~llion, approximately $1,3 of which ha~ been spent to date. Completion is ex~ete~ by the end of 1997. Following are economic indic~tor~ ~f t~e City and the County. CiTY OF BREMERTON AND KI'I-SAP COUNTY POPULATION Kitsap Numbe¢ of City of Other Kl{sap County County Resident Armed Year E, remerton Incocporated Unincorporated Total Forces Personnel2 1996 38,496 31,210 155,120 224,700 N/A3 1995 39,610 29,915 151,075 220,600 11,916 1994 35,920 28,625 145,655 213,200 9,716 1993 36,380 28,160 145,460 2 I0,000 11,817 1992 38,990 2%405 139,205 205,600 15,631 1991 37,040 26,639 4 132,$21 196,500 !2,310 1990 38,142 12,913 I38.676 [89,731 15,050 TAXABLE RETAIL SALES Year Kitsap County City of Bremerton 1995 $ 1,768,304,057 $ 451,277,4[4 ! 994 1,774,1 $~,000 46 [ ,026,409 t 993 1,658 375,823 422 329,475 1992 1,551,862,692 409,553,37 l 1991 1,438,615,382 390,094,567 Source: W;tqhiagton $tm¢ Office of Finnnc',~ M;magcmc~:t a~ U,S, Census. ~scimatcd. ~c large i{~cr~a~ is d~ to ~ll~ nnacxafion of thc unincor~atc~ ~:i~ or' Bail,bridge isk~nd ~o ~h~ new City of B ai~ibr/dgc Island. ~oumc: Was~ingtoa Statc Depart,hour of Revenue. JAN-- 8--9? WED 17 : 0 I SEAF I RST CAP I TAL MRKTS P . 06 CITY OF BREMERTON MAJOR TAXPAYERS! Taxpayer Puget Sound Power and Light US West Inc. EMI, Inc. Michael Viewcrest Villages Limited Pamlershlp Charles & Joan Haselwood Merit Company Ovcrlake Management Company Cascade Natural Gas Homing Thicry Parmersmp Assessed Valuation for Business 1997 Collection Year Electric Utility $ 26,528,942 Telecommunications 19,510,781 Developer 9,735,140 Olympic College Business Svcs 8,022,400 Apartments '7,800,000 Retail 7,010,000 Retail 6,032,900 . Retail 6,000,000 Gu Utility 5,910,993 Apartments 5,765,000 SEATTLE-BR£MERTON FERRY TRAFFIC STATISTICS Year Number of Vehicles Number of Passengers 1995 751,266 1,545,417 1994 71.9,125 1,456.706 1993 676,031 1,399,354 1992 667,251 1,493,550 1991 659,827 1,439,648 1990 638,689 1,484,629 KITSAP COUNTY WASHINGTON STATE AND USA LABOR FORCE AND AVERAGE ANNUAL UNEMPLOYMEN'I'3 ¢ Kitsap County Unemployment as a Percent of Labor Force United Resldent Civilian Average Annual Total States Year Labor Force Unemployment Ernployment KIt~ap County {%) Washington (%) 1995 90,900 6,000 84,900 5.5 6,4 5.6 1994 89,500 5,400 84,1t30 6.0 6.4 6.1 1993 90,100 6.000 84,100 6,7 7,5 6.8 1992. B R,900 5,400 83,500 6, I 7.5 7.4 1991 85,800 4,200 81,600 4,9 7,~ 6.7 1900 84,600 3,400 81,200 4, I 63 5.5 3 lncludea nonagricultural wage m~d s,lary, ~elr-cmployed, uapnld hilly wotkcrt, dome~tio, agricultural wm'kcra, labor disputant,. 16 JAN-- 8--9? WED 1T = 0 2 S EA F I RS T C A P I T A L M~ K~,T S P . 0 ? KITSAP COUNTY, WASHINGTON STATE AND USA INCOME ESTIMATESI Kitsap County Year Personal Income ($000) Per Capita Income Kltsap County Washington USA 1994 $ 4,246,000 $ 19,264 $ 22,526 $ 2t,$96 ! 993 4,019,000 18,676 21,774 20,800 1992 3,902,000 18,607 21,333 20,137 1991 3,601,000 17,971 20,168 19,201 1990 3,323,997 17,318 19,268 ! 8,677 1989 2,966,841 !6,129 l $,085 17,690 PRESERVATION OF TAX EXEMPTION Thc City has covenanted, by tho Ordinance, to take all actions necessary to prevent interest cn the Notes fi'om being included in gross income for federal income tax purpose, and it will neither t;[ke any action nor make or permit any use of proceeds of the Notes er other funds of the City treated as proceetq of the Notes al any time during the term of the Not,s which will cau,~e interest on the Notes to be included in gross income for fcdcral income tax purposes. The City certifies that it ha~ not been notified of any li.qting or propose~ listing by the Internal Revenue Service to thc effect that it i.q a bond issuer whose arbitrage reft[fica[ions may apt be relied upon. FEDERAL INCOME TAX EXEMPTION Exclusion from Gross Income In the opinion of Bond Counsel, assuming compliance by the City with applicable requirements of the Code,. including arbitrage requirements under Section 148 of th~ Code, interest, on the Notes is excluded from gros~ income of~ registered owners for f~:dera! income tax purposes under existing federal law and is not an item of tux preference for purposes of the alternative minimum tax applicable to individual.q. Corporate Alternative Minimum Tax While interest on th, Notes also B not an item o£ tax preference for purposes of the alternative minimum tax applicable to corporations, under Section 55 of the Code, tax-exempt interest, including interest on the No[cs, received by corporations is taken into account in the cpm. gu[etlon of adjudge{1 current earnings for purpo.qes of the alternatiw m{uimum tax appl~cabl¢ :o corporation~ (as defined for federal income tax purposes). Under the Code, alternative minimurn ta.x, able income of a corporation will be increased by 75 percent of the execs, of the corporatiot:'s adjusted current earnings (including any tax-exempt interest) over the corporation's alternative minimum taxable income dc[ermined without regard to such increase. A corporation's 'alternative minimum taxable income, so computed, that i~ in excess of an exemption of $40,000, which exemption will be reduced (but not below zero) by 25 percent of the amount by which the corporation's alternative minimum taxable income exceeds $150,000, is then subject to a 20 percetxt minimum tax. 17 136, Corporate Environmental Tax Section 59A of the Code imposes for tax years beginning on or before January 1, 1996, an en.v{.ronmental tax of O. 12 percent ($1,20 per $1,000) on the ~unount of a corporation's alternative minimum taxable income (increased for certain book income and adjusted currem earnings, including any tax-exempt interest) that exceeds $2,000,000. Tan on Certain Passive Investment Income ors Corporations Under Section 137.5 of the Code, certain excess net passive investment income, including interest on the Notes, received by an S corporation (a corporation treated as a partnership for most federal tax purposes) that h~ Subchapter C earnings and profits at the close of the taxable year may be subject to federal income taxation at the highest rate applicable to corporations if more than 25 percent of'the gross receipts of such S corporation is passiv, investment income, Foreign Branch Profits Tax Interest on the Notes may be subject to th~ foreign br~mch p~',o,~u, tax imposed? Sectio~ 884 of the Code when the Note~ ar~ owned lay, and effectively connected with a ti'ad, or business of, a United States branch of a foreign corporation. CERTAIN OTHER FEDERAL TAX CONSEQUENCES Notes are "Qualified Tax-Exempt Obligations" for Financial Institutions Section 265 of thc Code provides that !00 percent of any interest ex,nsc incurred by banks and other financ, ial insti}.,u..tions for interest allocable to tax-exempt obligations acquired after August 7, 1956, will be disallowed as a tax deduction, However, if thc tax-exempt obligations are obligations other than private activit7 bonds, are issued by a governmental unit that, together with all entities subordinate to it, docs not reasonably anticipate issuing more than $i0,000,000 t' tax,?xe.m,pt obligations, (o.ther th. an pr!vale activity ?~.o.~ds and other obligations not required to e inc/uaea in such catcumtion) in the current calendar year, and are designated by the governmental unit as "qual ifiecl tax-exempt obligations," only 20 percent of any interest expense deduction allocable to those obligations will be disallowed. The City is a governmental unit that, toge.',her with all subordinate entities, reasonably anticipates issuing less than $10,000,0t30 of tax-exempt obligations (other than private activity bonds and other ob,a,gauo, ns not re.qu)tc.d, to be included ,~n such calculation) during the current calendar 'ear eno ass ocsi nat'ed the Notes as" ualifiea tax exem t . ' " ) , g q ' ' - p obligations for purposes of the $0 percent financial institution interest expense deduction, Therefore, only 20 percent of the interest expense deduction of a financial institution allocable to the Notes will be clisallowed for federal income tax purposes. Reduction of Loss Reserve Deductions for Property & Casualty Insurance Companies Under Section 832 of the Code, interest on the Notes received by prot~, rty and casualty insurance companlc$ will reduce tax deductions for loss reserves otherwise avaxlable to such companies by an amount equal to 1:5 percent of t,'~x-exempt interest received during the taxable year. Effect on Certain Social Security and Retirement Benefits Section 86 of the Code re. quires recipients of certain Social Security and certain Railroad Retirement b'..'ne, fit~ to take receipt or accruals of interest on thc Notes into account in determining gross income. Oflmr Possible Federal Tax Consequences Receipt of interest .on th~ Note:~ may have other federal tax conmquences as to which prosg',cctivc purchasers of the Notes may wish to consult their own tax advisors. 15 13'7 ABSENCE OF MATERIAL LITIGATION There is no litigation of any kind now pending or, to the knowledge of the City, threatened to rc~traln or enjoin thc issuance or delivery of the Notes m' ia any manner q~¢stioning the proceedings and authority under which the Notes are issued or affecting thc abilit) of the City to pay the prlncip~ of or the interest on ~c Notes. CUSIP NUMBERS CUSIP identification numbers will be printed on the Notes. However, neither the failure to print such numbers on any Note nor any error with respect thereto st:all constitute cause for a hilure mi r. ef.usal by th~purchascr of the Notes to accept delivery and pay for the Notes in accordance wah me ten?s ut any agree[~cnt to purchase. Expenses related to the printing and assignment of CUSIP numoers on theNotes shall ~ paid roi' by the City. APPROVAL OF BOND COUNSEL Legal matters incident to the authorization, issuanc~ and sale of Notes by thc City are subject to the, approving legal opinion of Foster Pepper & Shefelman, bond counsel. A copy of the opinion of bond counsel will be. delivered with the Notes, Bond counsel has reviewed thts document only to confirm that the portions of it dcscrib[ng the Notes and th.¢ City's authority to issue them con['orm to the Note.q and the applicable laws under which they are issued. CONTINUING DISCLOSURE Undcrtak|ng to Provide Notice of Specified Material Events To mcct the roquirements of paragraph (b)(5) of the United Stales Securities and Exchange Commission ("SEC") Rule 15c2-12 (the "Rule"), to the extent applicable to an issue of municipal securities with a stated maturity of 18 months or less under paragraph (d) (3) of ti~¢ Rule, as applicable to a pm'ucipating underwrite, r for the Notes, thc City will undertake (the Undo. taking ) for thc benefit of holders of the Notes to provide or cause to be provided, either directly or through a designated agent, to each nationally recognized municipal securities information repository designated by thc SEC in accordance with the Rule ("NRMSIR") or to the Municipal Securit~e~ Rulemaki ng Bo;u'd ("MSRB") and to a state information depository, if any, established in the State of Washin~,ton (thc SID ), timely notice of tl.e occurrence of any of tho following events with respect to the Notes, if material: (i) principal and interest payment delinquencies; (ii) non-payme,nt related defaults; (iii) unscheduled draws on debt service reserves reflecting financial difficulues; (iv) unscheduled al. taws ua credit enhancements reflecting financitd difficulties; (v) substitution of credit or liqmdity providers, o:' their failure to perform; (vi) adverse tax opinions or events affectin~ the tax-exempt status of the Notes; (vii) modifications to rights of holders of the Notes; (,, iii) N~ote cdts (other than scheduled mandatory redemption of Term Notes); (ix) dct'casances; (x) r~lease, substitution, or sate of property securing repayment of thc Notes; and (xi) rating changes. Amendment of Undertaking The Undertaking is subject to amendment after thc primary offering of the Notes without the consent of any holder of any Note, or of an>' broker, dealer, municipal securities dealer, participating underwriter, rating agency, NRM$1R, the SID or the MSRB, under the circumstances and in the manner permitted by the Rule. 19 The City will give notice to each NRMSiR or the MSRB and the SiD, of ti~¢ substance (or provide a copy) of any arnendnlent to the Undertaking and a brief statement of the reasons for amendment, If the am,c,'~dment changes the ty~ of annual financial information to bc provided, the notice also will inclucte a noa'rative explanation of tho effect of that change in the type of information to be provided. Termination of Undertaking. The City'.~ obligations under the Undertaking shall tcrmlnate upon the legal defeasance of all of the Notes, In addition, the City'.~ obligations under the Undertaking shall tcm~inate it those pro'dsions of the Rule which require the City to comply with the Un'clertakin.~ ~come le~aliv inapplicabl, in respect of the Notes for any reason, as confirmed by an epini-on of natio~'{all~ recognized bond counsel or other counsel fa,'nilh~r with federal securities law, delivered to the City, and the City provides timely notice of such termination to each NRMSIR or the MSRB and the SlD, Remedy for Failure to Comply with Undertaking. If the Cit~' or any other obligated person fails to comply with the Undertaking, the. City will proceed v, itb due diligence to cause such noncompliance to be corrected as so,o,,n,, as practicable after the City learn~ of that hilum. No failure by the City er other obligated pea'son to comply wah,t? Undertaking will constitute a default in respect of the Notes. Th, sole remedy of any holder of a Note will be to take such actions a.q that holder deems necessary, including seeking an order of specific performance from an appropriate court, to compel the City or other obligated person to comply with the Undertaking. UNDERWRITING The Underwriter has agreed, subject to certain conditions, to purchase all of the Notes, [f any am purchased, at a pric, of .. % of the par value of the Notes, pius accrued interest fi'om the dated date to the settlement date. The Notes will be reoffcred at an average price of .% of the par value of the Notes, resulting in a underwriting spread of %. 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 .~tatcments contained herein, while taken from sources considered reliable, are not guaranteed.by the City or the Underwriter. $o far as any statement herein includes matters of opinion, or estnnates of future expenses and lucerne, whether or not expre,qsly so stated, they are intended merely as such and not as representations of fact. The information contained herein should not be construed as representing all condition.s, affecting th, City or the Notes. Additional information may b¢ obtained directly from the C~ty or the Underwriter. The foregoing sta!ements relating to the Ordin.ance and other documents are in ~II respects subject to and quahfied in their entirety by provis)on$ 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 thc City. Thc Cit~, has represented to the Underwriter that the portions of this Official Statement directly per[aining to the City neither contain any mi. sreprcscntadon of material f~t nor omit any material fact necessary to understand the financhd, eco~tomie or legal nature of the City or any information presented herein. ~0 /3'/ APPENDIX A FORM OF LEGAl. OPINION