HomeMy WebLinkAbout11/12/97 AGENDABREMERTON CITY COUNCIL
239 4TH STREET
BREMERTON, WA 98337
CITY COUNCIL AGENDA
NOVEMBER t2, 1997
CITY COUNCIL STUDY SESSION: 4:45 - 5:30 P.M.
A. General Council Business
B. Study Session 4:45 - 5:20 P.M. - Topic: Fire Equipment
Sponsored by the Grace A Bremerton Firefighter Group
Demonstration
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. ~0~.,
A. Minutes - November 5, 1997 #AB97-239
4. CLAIMS/CHECK REGISTERS
5. COUNCIL MEMBER REPORTS
6. MAYOR'S REPORT
7. PUBLIC RECOGNITION -- (Comments Limited to 3 Minutes)
(CONTINUED ON NEXT PAGE)
NEW BUSINESS
A. Professional Services Agreement with R.W. Beck for
Amendment No. 11 to the Wastewater Treatment Plant
Odor Control Project
B. Public Works Emergency Response Mutual Aid Agreement
C. Telecommunications Tower Lease with PageNet of Seattle
#AB97-240 ![
#AB97-242 ,.~,~
ORDINANCES
A. Ordinance (First Reading) Authorizing the Issue of 1997
UTGO Refunding Bonds and accepting the Purchase
Offer of SeaFirst Bank
Ordinance No. 4604 (Second Reading) Establishing Area
Restrictions for Persons Arrested or Convicted
Of Prostitution
C. Ordinance No. 4612 (Second Reading) Reducing the B&O
Tax on Garbage and Refuse Business
D. Ordinance No. 4613(Second Reading) Levying Property
Taxes for Collection in 1998
#AB97-243 ~,¢~
#AB97-236
#AB97-237 /.~ I
#AB97-238 /3~
10.
PUBLIC HEARING (6:00 P.M. or later)
A. Resolution No. 2632 Regarding Recovery of Fees for the
Abatement of the Property located at 1018 Burwell Street
AGENDA BILL
--~BREMERTON CITY COUNCIL
1. SUBJECT':-
MINUTES OF MEETING -- NOVEMBER 5, 1997
FOR AGENDA OF:
ORIGINATING DEPT:
ORIGINATOR:
DATE SUBMITTED:
NOVEMBER 12, 1997
City Council
David Farr~ President
NOVEMBER 7, 1997
2. ~: (comment on back
if necessary)
ENDORSEMENT__ INFORMATION
MAYOR
APPROVED BY COUNCIL PRESIDENT FOR SUBMITTAL:
COUNCIL PRESIDENT ~ ~-~~
4. $~/MHARY STATEMENT AND REOUIREMENT FOR COUNCIL AcTION:
8. RECOM/~ENDATION:
9. RESPONSIBLE OFFICIAL:
ENFORCEMENT OFFICIAL:
_EXPIRATION DATE:
REVIEW DATE:
PUT.LED TABLED
CO%TNCIL DIRECTIVE:
10. NOTICE OF ACTION
APPROVED DISAPPROVED
..DATEi
AMENDED
2. CLEARANCE COMMENTS: .... ~
~5 ..'~WMPACT ON NON-PASSAGE:
.STAFFING, BUDGETS, FACILITIES, EOUIPMENT OR OTHER RESOURCES:
TAPE #1501
UNAPPROVED DRAFT
CITY COUCIL MEETING MINUTES
NOVEMBER 5, 1997
The regular meeting of the City Council of the City of Bremerton was called to
order in the City Council Chambers, 239 4t~ Street, Bremerton, Washington,
Wednesday, November 5, 1997, at 5:30 P.M., with Council President David Fart
presiding. Council members present were Bob Winters, Carlos Montgomery,
Sherril Huff-Menees, Richard Neville, Lon Overson, John Law, Cecil McConnell,
and Al Colvin. Also present were City Attorney lan Sievers and Acting City Clerk
Rich Hanna.
The meting opened with the Pledge of Allegiance led by Council President Fart
and invocation given by Reverend Cleveland Williams of the Ebenezer A.M.E.
Church.
President Farr made the following announcements:
(1) Council held a Study Session prior to Council tonight in the Council
Conference room to discuss "Community Reinvestment Act/Economic
Development Strategic Planning";
(2) City Council will hold a Study Session on Thursday, November 6, starting
at 5:30 P.M., in the Council Conference Room. This is the first of the 1998
Budget meetings, and the topic will be "Overview & Revenue Discussion;
Miscellaneous Expenditures; and Intergovernmental";
(3) City Council will hold a Study Session prior to the Council Meeting on
November 12, 1997, 4:45- 5:20 P.M. for a "Fire Equipment Demonstration
Sponsored by the Grace A Bremerton Firefighter Group";
(4) City Council will hold the regular Council Meeting on Tuesday, November
25, 1997, rather than Wednesday, November 26, 1997 due to the Thanksgiving
Holiday; and
(5) City Council will hold a series of Study Sessions to discuss the 1998
Budget, 5:30 P.M. in the Council Conference Room on November 6, 17, 18, 20,
and 24, 1997.
CONSENT AGENDA
A. Minutes of Meeting - October 29, 1997
#AB97-235
#0067 MlSlCiU(NevillelMontgomery) Motion to approve the Consent Agenda as
presented.
TAPE #1501
City Council Reg. Mtg. Minutes
November 5, 1997
Page 2 of 7
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
#0085 MISlClU(ColvinlMontgomery) On November 5, 1997, the Council does
approve for payment those vouchers included and further described as follows:
214151 through 214348 in the amount of $803,465.81; and Regular Payroll for
the pedod ending October 31, 1997 in the amount of $892,913.57.
COUNCIL MEMBER REPORTS
Bob Winters announced a seminar for first-time home buyers on Saturday,
November 15, 1997 at the Mountain View Middle School - Common Area,
located at 2400 Perry Avenue, with registration at 8:30 A.M., seminar will be from
9:00 A.M. to 3:30 P.M., and lunch will be provided. Call 1-800-739-4692 for more
information. He also thanked the voters for studying the issues and the
candidates, and then turning out to vote.
Sherril Huff-Menees announced the "SmileMobile', sponsored by the
Washington Dental Service, the Washington State Dental Association, and
Washington Dental Service Foundation, will be in the Bremerton area November
10-25, 1997 at the Community Resource Center located at 1201 Park Avenue.
Please call 377-7667 for further information. She also invited the public to join
the City of Bremerton Water Utilities 80-year anniversary, which will have a
display at the Kitsap County Historical Museum located at 280 4th Street,
November 7 - December 31. On Friday, November 07, 1997 at 6:30 P.M.,
Mayor Lynn Horton will give a presentation.
Richard Neville clarified for the public that the first-time homebuyer seminar
mentioned previously is for all Kitsap County residents, and is a worthwhile
program.
John Law thanked all the voters from District #3, and the team lead by Bill
Strutcker. He also shares in the philosophy that Mr. Colvin will address. He
looks forward to the next four years being very productive for Bremerton. He
announced his next District #3 meeting for November 18, at the Senior Center on
Nipsic, at 7:00 P.M.
Cecil McConnell reiterated the information about the "SmileMobile", and stated it
is for children 13 and younger, and provides access to dental care for Iow-income
families.
Al Colvin stated that as Council members, they need to remember to conduct
themselves in a manner that will encourage and inspire qualified men and
TAPE #1501
City Council Reg. Mtg. Minutes
November 5, 1997
Page 3 of 7
women to seek political office. He believes that everyone who participated in the
election process are "winners~ regardless of the outcome of the election. He is
thankful we live in a country where reprisals are not the norm for political
differences. He believes now is the time to put political differences aside, and
truly devote time and energy for the benefit of all the citizens. In addition, he
reported on funds being received for the Warren Avenue Beautification Project to
replace the Scotch broom.
MAYOR'S REPORT
No report this evening.
PUBLIC RECOGNITION
Bob Sauter, President of Kitsap County Veteran's Coalition, presented the City
of Bremerton with a World War II print called 'The Dawn of Peace", and an
accompanying letter addressed to Bremerton citizens from the World War II
Memorial Committee, thanking the City for their contribution for the memorial to
honor the Washington State veterans who dedicated themselves to the
preservation of freedom. Bob Fer.quson, who was in Tokyo Bay when the
surrender was signed aboard the USS Missouri, presented the print to Council.
A Veteran's Day service will be held at Retsil Veteran's Home on Tuesday,
November 11, 1997, at 10:00 A.M. to honor our veteran's.
Rachel Simpson, Co-Chair of Kitsap Kids Production Company, announced the
first Kitsap Kids Variety Show to be held at the Roxy Theater, November 6, 1997
at 7:00 P.M., which will include music, dancing, and singing. Price is
$6.00/Adults and $4.00/Children, seniors, and Military.
Wayne Olsen, Bremerton resident, invited the City Council, Mayor, and all
Bremerton residents to an Open House to honor Mr. & Mrs. Al Colvin on
December 4, 1997, 7:00 - 9:00 P.M. at the Sheridan Park Recreation Center.
addition, he presented a check to contribute to the Scotch broom replacement
project.
In
Ed Pietras, Knights of Columbus of Kitsap County, thanked Sherril Huff-Menees
for all her hard work, and also welcomed Carol Arends, new Distdct #7 Council
member. He thanked all that participated in the 15th Annual Olympic Peninsula
Kidney Center Spaghetti Festa in October, and stated that all money earned will
be delivered to the Olympic Peninsula Kidney Center for their use.
Gordy Byrd, Bremerton resident, announced a dinner for Iow-income families at
Olympic High School, and also at Neighborhood Christian Church, and asked the
public for their help. He also asked for donations of clothes, toys, and blankets.
He inquired why the City of Bremerton, or Kitsap_County, has no intervention
program for individuals with mental disorders, who may do harm to themselves,
specifically those who own guns.
TAPE #1501
City Council Reg. Mtg. Minutes
November 5, 1997
Page 4 of 7
Mike Shepherd, Bremerton resident, announced a Block Watch orientation to
be held Thursday, November 7, 1997, 6:30 P.M. at the Smith Building, for
residents between Highland and Park Avenue; 11th Street and Smith Cove; the
area on Chester from 6th Street to 11th Street; and 8th Street to High Street. The
goal is to organize three to four Block Watch neighborhoods. He also announced
the Evergreen Neighborhood Association Meeting on November 20, 1997, at
6:30 P.M. to discuss the traffic on the Park Avenue by-pass off of Warren, and
also to discuss the Evergreen Park expansion.
Police Chief Du Fresne, stated that Block Watch programs do work, with less
than 5% of burglaries in the City taking place in Block Watch Neighborhoods.
Del Knauss, Bremerton resident, recommended that Al Colvin contact local
nurseries who may have plants left over from last season, for his Beautification
Project. In addition, he agreed with the words of Councilman Colvin regarding
the conduct expected of elected officials. He feels the conflict between four
current Councilmen and the election of a District 3 Councilman were tied to the
Sinclair Landing Association project, and shouldn't have been. He was appalled
to see the Council divided, and that it angered the voters to see a select few
Councilmen use their positions to try and influence the vote for a candidate from
another district. He hopes everyone learned something from this.
Susan Brown, Bremerton resident, received a letter from the City Attorney
regarding her questions about the ethics of the Council. She does not feel that
the letter was relevant to anything she was talking about. Doing her own
research, she found wording in the Bremerton Municipal Code that she believes
addresses her concerns, and also shows that there may have been a violation of
that code. She would like to file a complaint, and asked the proper procedure. In
addition, she gave her phone number, 377-2065, for anyone else interested in
pursuing this concern, lan Sievers, City Attorney, stated she would file any
complaints with the Legislative Assistant in the City Council office.
8A - ORDINANCE (FIRST READING) ESTABLISHING AREA RESTRICTIONS
FOR PERSONS ARRESTED OR CONVICTED OF PROSTITUTION~ #AB97-
236
Several jurisdictions have found Court Orders limiting access to high risk areas
for prostitution imposed on those arrested or convicted of prostitution or
prostitution-related crimes have proved a successful tool in combating this
criminal activity. The proposed ordinance establishes such orders for those high-
risk areas in Bremerton characterized by a pattern of arrest for prostitution
offenses.
Paul Du Fresne, City of Bremerton Police Chief,-thanked Detectives Kevin M.
Crane and Greg K. Rawlins for their help in researching this document, including
TAPE #1501
City Council Reg. Mtg. Minutes
November 5, 1997
Page 5 of 7
talking with other agencies that have used it, and verifying the "persistent" areas.
The ordinance will provide a tool in assisting the Municipal Judge to designate an
order to persons arrested for acts of prostitution or soliciting prostitution, to stay
out of a prescribed area of prostitution. He presented a map to identify those
areas, based on a history of arrests. Further explanation of what the violation will
amount to, and penalties for that violation are contained in the ordinance.
April Chandler, Reporter from the SUN Newspaper, asked if this ordinance
would be sensitive to the time of day? She also asked about persons arrested
and convicted, who also live or work in the designated area? Chief Du Fresne
responded no, the orders do not specify a time of day, they are simply ordered to
stay out of the area. Regarding adding another area as described, it may be
necessary to amend the ordinance, or it may fall under Section 5 of the current
ordinance, which allows the Judge to establish a specific area on a specific
order. He further stated that the Judge would have broad latitude of discretion in
this issue and any special conditions.
Larry Dickerson, Bremerton resident, stated there are people who live in the
designated areas, and are promoting prostitution by allowing their homes to be
utilized by a number of prostitutes, and some selling drugs. He is also concerned
about the over-load this ordinance might cause to Municipal Court, and lack of
funds, lan Sievers, City Attorney, stated this ordinance deals with pre-release
and probation conditions imposed not only for prostitution, but also associated
crimes.
Mr. McConnell asked about the research sources on this issue, and wondered
how many cities were contacted, and were their ordinances similar to ours?
Were there any difficulties in enforcing it.'? Chief Du Fresne stated they talked
with Police Chiefs in other cities, and they have all found it to be an effective tool,
and not a burden. Areas can be changed quickly according to arrest patterns.
Mr. Law asked what would be involved in the Municipal Court to issue a Court
Order to designate another area as a problem area? Mr. Sievers stated it would
save time because the area is already established, and wouldn't have to present
evidence on each incident. The Police Department may want to bring to the
Court's attention that there are new areas, even those specifically related to a
particular defendant at time of sentencing so the Court can make a finding. Mr.
Law asked what if a person living in a designated area says they do not like
living in an area that is designated with this type of problem? Mr. Sievers stated
it is not mandatory on the Court in any case, but will give the Judge a
presumption that these areas should be considered for particular defendants.
#1679 MlSlClU(NevilleNVinters) Motion to approve Ordinance, on first reading,
adopting anti-prostitution emphasis areas for inclusion in conditions of release or
'7
TAPE #1501
City Council Reg. Mtg. Minutes
November 5, 1997
Page 6 of 7
conditions of probation for those persons charged or convicted of prostitution,
and amending Chapter 9.24 of the Bremerton Municipal Code.
(Councilman Bob Winters departed the meeting at 6:25 P.M.)
8B - ORDINANCE (FIRST READING) REDUCING THE B&O TAX ON
GARBAGE AND REFUSE BUSlNESS~ #AB97-237
This ordinance will continue the process that began in January of 1995, of
gradually reducing the B & O Tax on garbage and refuse businesses within the
City to a level consistent with utility tax rates. The intention is to reduce the tax
rate by one percent each year.
Public comment - none.
#1780 M/S/C(Huff-Menees/Overson) Motion to approve Ordinance, on first
reading, reducing B & O Tax on refuse business.
Vote on Motion:
Motion carries.
In Favor: Neville, Overson, Law, Colvin, Montgomery,
Huff-Menees, and Fart;
Opposed: McConnell
8C - ORDINANCE (FIRST READING) LEVYING PROPERTY TAXES FOR
COLLECTION IN 1998~ #AB97-238
The City's property taxes are levied on an annual basis through passage of an
Ordinance. The proposed Ordinance will enact a general property tax levy at the
Statutory rate limit and special levies for Emergency Medical Services and Bond
Redemption at rates previously authorized by the voters. The text of the
ordinance includes language recommended by the State Department of Revenue
in anticipation of voter approval of Referendum 47.
Rich Hanna, City Treasurer, stated during his tenure with the City, it is typical
that the property tax ordinance is based on a preliminary assessed valuation.
The final numbers are not yet available from the County, so there is provision in
Section 3 that provides flexibility for the rates, and they will be modified as
necessary as the assessed valuation is determined. It appears that the voters
will pass Referendum 47. The affect of the ordinance is to require a specific
action from the Council if the property taxes are to increase at a rate greater than
the rate of inflation for the past year. Based on the preliminary assessed
valuation numbers, property tax revenue will increase by just over
2.5%, rather than 6%. In addition, before the voters was a measure authorizing
an increase in the Emergency Medical Services levy from the current .25 to up to
.50. It is not yet known the outcome of this measure. He also corrected an error
TAPE #1501
City Council Reg. Mtg. Minutes
November 5, 1997
· Page 7 of 7
in an article of the CK Reporter where an amount of $4,000, rather than the
correct figure of $400 was given as an example on a $100,000 home.
Elizabeth Buell, Bremerton resident, didn't understand how the City came up
with the figures used, and wanted to know how the City decides how much they
will get from the property taxes? Mr. Hanna stated the passage of this ordinance
sets the levy rates for the property tax levies of 1998, with the assessed value
determined by the County. He further clarified that the General Operating Levy
funds all of the general fund activities for the City, along with sales tax and B&O
taxes, to fund the police and fire departments, pay staff salaries, parks
department, etc. Mr. McConnell stated that he is normally opposed to any
increase in taxes, but without this increase, it wouldn't be long before there was
not enough operating capital to provide fire and police protection, sewer, water,
etc. Unfortunately, costs go up every year, and it continues to cost the citizens
more each year. He does vote "yes" very reluctantly.
#2130 MISICIU(OversonlMontgomery) Motion to approve Ordinance, on first
reading, levying Municipal Taxes against all the taxable property within the City
limits of Bremerton for the year 1997, and approving the assessment roll made
by the assessor of Kitsap County, therefore to be collected in the year 1998.
President Farr thanked Robert C. Neal and a group of volunteers from the
Bremerton Housing Authority and Americorps for their TV crew services: Annette
Atkinson, Shaun Dougherty, Juanita Belcher, and Kelly Gardner.
With no further business meeting adjourned at 6:40 P.M.
PAULA JOHNSTON, Deputy City Clerk
DAVID FARR, City Council President
City of Bremerton
P J/DF/Is
C: Normal Distribution
FileNault
AGENDA BILL
BREMERTON CITY COUNCIL
SUBJECT: WWTP Odor Control Project
Amendment No. 11 with R.W. Beck for
professional services.
FOR AGENDA OF:
ORIGINATING DEPT:
ORIGINATOR:
DATE SUBMITTED:
November 12, 1997
Public Works & Utilities
R. Witt, City Engineej, .~
October 27, 1997/'~,~x* '
ENDORSEN[ENT ~ II~F~KM. ATION
/0t
PROV V BY COUNCm? SJ hCF2R SUB nTT :
COUNCIL PRESIDENT ~p~-4~_ *t)~.
4. SUMMARY STATEMENT AND REQUIREMENT FOR COUNCIL ACTION:
Amendment number 11 to the Professional Services Agreement with R.W. Beck for construction
administration services on the Wastewater Treatment Plant Odor Control Project is required for: (1) protracted
negotiations with the Contractor to reach a settlement on the construction contract work, costs and time extension;
(2) negotiations with the Contractor and U.S. Filter/Envirex to reach a settlement for the replacement of the grit
collection system's chain; (3) extending the certification period for the dechlorination facilities; and (4) preparation
of record drawings. This amendment will also delete Phase V support services and the $10,000.00 for these
services which was approved by Amendment Number 6 to the basic contract. This Amendment will increase the
contract by $71,392.21 to a total amount of the contract to $2,219,538.08. Th±s ±s the f±naI amendment to
Complete this contract.
8. RECOMMENDATION:
That the City Council authorize and direct the Mayor to execute Amendment No. 11 to the Professional
Services Agreement with R.W. Beck for the Wastewater Treatment Plant Odor Control Project.
9. RESPONSIBLE OFFICIAL:
ENFORCEMENT OFFICIAL: N/A
EXPIRATION DATE: N/A
REVIEW DATE: N/A
City Engineer
10. NOTICE OF ACTION
PULLED
TABLED
APPROVED
COUNCIL DIRECTIVE
11.
AGENDA BILL NO: q '7 - ~ 740
2. CLEARANCE COMMENTS:
IMPACT ON NON-PASSAGE:
Services with R.W. Beck for construction management will be terminated and the project closeout will not
be completed in an orderly or timely fashion.
0
IMPACT ON STAFFING. BUDGETS. FACILITIES. EQUIPMENT OR OTHER RESOURCES:
Sufficient funds exist in the budget for this work.
7. RESEARCH SOURCES
97590Xbk
AMENDMENT NO. 11
AMENDED PROFESSIONAL SERVICES AGREEMENT
THIS AGREEMENT amends the "PROFESSIONAL SERVICES AGREEMENT" for the WWTP
Odor Control Improvements between the City of Bremerton and R. W. BECK, Inc. approved by
the Bremerton City Council on May 18, 1994.
WITNESSETH:
Phase IV Construction Administration
The reference Agreement is amended due to: (1) protracted negotiations with the Contractor to
reach a settlement on the construction contract work, costs, and time extension; (2) negotiations
with the Contractor and U. S. Filter/Envirex to reach a settlement for the replacement of the grit
collection system's chain; (3) extending the certification period for the dechlorination facilities;
and (4) preparation of record drawings as shown in the table below.
Phase V Post Construction Support
The Agreement is hereby amended to delete Phase V support services and the budget allowance
of $10,000.00 for these services which was established in Amendment No. 6, as shown in the table
below:
0101
0102
0103 Clerical
Phase IV - Construction Administration
Project Mgmt.
Contract Admin.
0106 Construction Progress
Meetings
0107 Submittal Review
0108
Routine Constr, Mgmt.
0109 Construction Record
0118 Dwgs.
0111 On-Site Observations
0112 Field Expenses
0114 Greeleyand Hansen
0116
0201
Electrical Routine
Construction Mgrnt.
Screen Corrosion Analysis
$ 876.09 $ 1,493.90 $ 410.71 $ 24.57
615.16 1,048.97 288.39 1.29
811.72 1,384.15 380.53 4.75
(6.86) (11.69) (3.21)
(632.61)
13,419.95
2,505.43
267.05
(496.38)
2,604.00
(1,078.74)
22,883.70
4,272.26
238.65
(296.57)
6,291.27
1,174.55
87.64
(60.00)
3,892.96
10,150.85
(223.88)
- - 2,756.83
(846.42) (232.70) (38.00)
4,440.34 1,220.76 1,772.80
Phase V - Post Construction Support
P°st C°nstructi°n Supp°rt t I
Totals $19,963.56 $33~325.13 $9,321.36
$18,282.17
$ 2,805.27
1,953.80
2,581.15
(21.76)
(2,067.92)
46,487.89
18,103.09
593.34
.. (22 .88)
2,756.83
(1,613.50)
10,037.90
(lO,OOO.OO)
$71,392.21
C:~DOC~REMERTNV~END11 .DOC
10/30~7
AMENDMENT NO. 11
R. W. Beck shall not be required to provide services in excess of the budget estimate amount
unless additional funding is provided by the City.
The not-to-exceed amount for the Professional Services Agreement is increased by $71,392.21 to
$2,219,538.08 by this Amendment
The remaining terms of the Professional Services Agreement not inconsistent with this
Amendment shall remain in full force and effect.
Agreement Time Extension
The reference Agreement is amended to extend the duration of the Agreement to June 30, 1998.
IN WITNESS WHEREOF the parties hereto executed this Agreement the date and year
indicated.
R. W. BECK, INC.
Leslie B. Baldwin, Director of Operations
D ,te:
CITY OF BREMERTON
ATTES~
APPROVED:
Lynn Horton, Mayor
Date:
Director of Public Works and Utilities
Date:
Kathleen McCluskey, Clerk
Date:
APPROVED AS TO FORM:
Ian R. Sievers,
City Attorney
Date:
C:~OC~REMERTNV~END11.DO C
2
AMENDMENT NO. 11
Bremerton Waste Water Treatment Plant
Budget Summary
Phase IV - Construction Administration
Phase V - Post Construction Support
Task Current Proposed
No. Description Budget O) Budget (2)
0101 Proiect Management $ 29,209.98 $32,015.25
0102 Contract (Financial) Administration 1,819.77 3,773.57
0103 Secretarial/Clerk 5274.50 7,855.65
0105 Preparation of Contract Documents 11,052.57 11,052.57
0106 Construction Progress Meetings 72,792.80 72,771.04
0107 Submittal Review 117,332.00 115,264.08
0108 Routine Construction Management Services 179,542.48 226,030.37
0109/ Construction Record Drawings 9,620.80 27,723.89
0118
0111 On-Site Observations 168,069.81 168,663.15
0112 Field Expenses 3,650.33 3,426.45
0113 Construction Group Services 9,125.72 9,125.72
0114 Greeley and Hansen 62,326.53 65,083.36
0115 Electrical Submittal Review 16,634.69 16,634.69
0116 Electrical Routine Construction Management Services 33,226.02 31,612.52
0201 Screen Corrosion Analysis 0.00 10,037.90
..... Phase V Post Construction Support $10,000.00 0.00
Totals I $729,678'0015801,070.21
O) Current budget through Amendment No. 10
(2) Inclusive of Amendment No. 11
C:'~DO CkBREMERTNkAMEND11 .DOC
10r30/97
AGENDA BILL
BREMERTON CITY COUNCIL
1. SUBJECT: Public Works Emergency
Response Mutual Aid Agreement
FOR AGENDA OF:
ORIGINATING DEPT:
ORIGINATOR:
DATE SUBMITrED:
November 1~, 1997
Public Works/Utilities ~,~~
P.K Lucas, Admin Analyst,,~/~/
October 21 ~ 1997
2. CI,E~RANCES: (Comment on bz~~~) 3. EXHIliITS:
Director PW&U F ~ · State DOT Ltr of July 29, 1997
City Attorney _ ~ ~ ·
City Treasurer ~ .~ ~'~ j ·
Operations Committee
Fiscal & Budget Comm. ~?~.,-~_.~__~_~ --
ENDORSEMENT /~ INFORMA~3~ { APPROVED BY COUNCIL PRESIDENT FOR SUBMITTAL:
4. SUMMARY STATEMENT AND REQUIREMENT FOR COUNCIL ACTION:
The proposal is an agreement between several Public Works organizations within the State to allow for mutual
aid during serious, emergency or major disaster situations. The agreement has been approved through the State
Attorney General's Office for format and content and provisions are included which allow for each organization to add
or delete items to suit their unique needs.
8. RECOMMENDATION: That the City Council approve the City's Department of Public Works &
Utilities to enter into this agreement with other similar organizations within the State and authorize the Mayor
to sign the agreement for the City.
9. RESPONSIBLE OFFICIAL:
ENFORCEMENT OFFICIAL:
EXPIRATION DATE:
REVIEW DATE:
Director of PUb Works & Util
Public Works Ops Manager
NA
NA
PULLED TABI~ED
COUNCIL DIRECTIVE:
10. NOTICE OF ACTION
APPROVED DISAPPROVED
AI~fENDED
DATE:
11. AGENDA BIIJ. NO:
qw q I
2. CIIEARANCE COMMENTS:
5. IMPACT ON NON-PASSAGE:
Would not allow the City to solicit assistance ~om other municipalities that are signatories on this agreemem in
times of emergency or disaster.
6. IMPACT ON STAFFING, BUDGETS, FACILITIES, EQUIPMENT OR OTHER RESOURCES:
None
7. RESEARCH SOURCES:
Washington State
Department of Transportation
Sid Morrison
Secretary of Transportation
Public Works Directors/Engineers
of All Cities and Counties
Transportation Building
P.O. Box 47300
Olympia1 WA 98504-7300
July 29,1997
Public Works Emergency Response
Mutual Aid Agreement
Enclosed for your agency's consideration and adoption is a copy of the Public
Works Emergency Response Mutual Aid Agreement. The purpose of the
Agreement is to permit signatory agencies to make the most efficient use of their
powers by enabling them to coordinate resources and to maximize funding
reimbursement during disasters/emergencies. This document is in two parts: (1)
the Agreement (to be officially adopted by your agency) and (2) the Reference
Guide (not to be adopted but has suggested procedures for implementing the
Agreement).
The need for an advanced coordination effort was brought to the forefront with
the Northridge Earthquake disaster in California and the prediction of a major
earthquake in Washington. A task force was convened to develop an
expeditious way to best accomplish an advanced coordination effort. The task
force included representatives from AWC, CRAB, cities, counties and WSDOT
(see attached).
This agreement was created to enable agencies to assist other agencies on an as
needed basis when they are faced with a disaster/emergency. When a
disaster/emergency occurs public works agencies have the responsibility to
maintain service and recover in the most expedient way. This can best be
accomplished by preparation, coordination and cooperation with other public
works agencies. Agencies are charged with coordinating their efforts, compiling
damage and recovery information and reporting to the appropriate authority.
Then the State requests aid and assistance from the federal government. This
Agreement provides a mechanism for immediate response provided the
responding agency has the resources and expertise necessary.
A,~~. For instance, during the Mt. St. Helen's eruption, the C{'t~ of Yakima
requested resource assistance from King County. Because there was not an
agreement in place prior to the disaster, the Federal Emergency Management
Agency (FEMA) could only reimburse the City of Yakima for King County
resources at the city's rates. The City of Yakima's rates were approximately 42%
lower than King County's. This resulted in the City of Yakima paying the
difference. However, if both agencies had been signatory to this agreement, then
FEMA would have reimbursed the City of Yakima for King County resources at
King County's rates.
The listing of agencies signatory to this mutual aid agreement will be maintained
by WSDOT, TransAid. Additions and deletions will be provided in hard copy to
signatory members. TransAid will also provide access to the list of signatory
agencies, the Agreement and the supporting Reference Guide on the Internet.
The draft was submitted to local agencies for review and the final Agreement has
the concurrence of CRAB and AWC. Also, it has been reviewed and is supported
by the Washington Counties Risk Pool and the Association of Washington Cities
Risk Management Service Agency, is approved as to form by the Washington
State Office of the Attorney General and has the support of the state's
Department of Emergency Management.
Please forward an original or certified copy of the agreement to Stephanie Tax,
TransAid, PO Box 47390, Olympia, WA 98504-7390, so your agency may be
added to the list. If you have any questions, contact Stephanie at (360)705-7389.
DENNIS B. INGHAM
Assistant Secretary
TransAid
Concurrence to have this Public Works Emergency Response Mutual Aid Agreement
enacted by local agencies.
STAN FINKELSTEIN
Executive Director
Association of Washington Cities
Executive Director
County Road Administration Board
EMERGENCY RESPONSE -- MUTUAL AID AGREEMENTS
TASK FORCE
COUNTY MEMBERS
Robert Berg
Public Works Director
Lewis County
350 North Market Blvd
Chehali.% WA 98532-2626
Phone: 360-740-1122
Fax: 360-740-1479
Mike Daniels
Public Works Director
Grays Harbor County
P. O. Box 511
Montesano, WA 98563-0511
Phone: 360-249-4222
Fax: 360-249-3203
Steve Kohn
Project Dev. Engr
King County DOT
· 400 Yesler Wy
Seattle, WA 98104-2637
Phone: 206-296-8755
Fax: 206-296-0567
Phil Merrell
Public Works Director
Whitman County
P. O. Box 430
Colfax, WA 99111-0430
Phone: 509-397-6209
Fax: 509-397-6210
Dick Owings
Public Works Director
Adams County
210 West Broadway
Ritzville, WA 99169-1860
Phone: 509-659-4236
Fax: 509-659-0301
Gary Powell
Engr. Services Mgr.
Snohomish County
2930 Wetmore Avenue, Suite 500
Everett, WA 98201-4044
Phone: 206-388-6689
Fax: 206-388-6449
CITY MEMBERS
Ron Cameron
Public Services Admin.
City of Woodinville
13203 NE 175~ St.
Woodinville, WA 98072-8534
Phone: 206-433-0179
Fax: 206-431-3665
Dave Davis
City Engineer
City of Everett
3002 Cedar Street
Everett, WA 98201
Phone: 206-259-8800
Fax: 206-259-8856
Fred French
City Engifieer
City of Yakima
129 N. Second St.
Yakima, WA 98901
Phone: 509-575-6096
Fax: 509-576-6305
Tim Heydon
Public Works Director
City of Des Moines
805 So. 219th
Des Moines, WA 98198-6393
Phone: 206-870-6522
Fax: 206-870-6544
Marv Seabrands
Public Works Director
City of Mountlake Terrace
PO Box 72
Mtlk Terrace, WA 98043-0072
Phone: 206-776-1161
Fax: 206-778-6421
OTHERS
Craig Olson
Transp. Project Coord.
AWC
1076 So. Franklin
Olympia, WA 98501-1346
Phone: 360-753-4137
Fax: 360-753-4896
Reid Wheeler
Engr. Services Manager
CRAB
PO Box 40913
Olympia, WA 98504-0913
Phone: 360-753-5989
Fax: 360-586-0386
Terry Simmonds
Emergency Mgmt. Coord.
WSDOT-Operations
PO Box 47358
Olympia, WA 98504-7358
Phone: 360-705-7857
Fax: 360-705-6823
Wayne Gruen
Deputy Asst. Secretary
WSDOT - TransAid
PO Box 47390
Olympia, WA 98504-7390
Phone: 360-705-7375
Fax: 360-705-6822
Stephanie Tax
Operations Analyst
WSDOT-TransAid
PO Box 47390
Olympia, WA 98504-7390
Phone: 360-705-7389
Fax: 360-705-6822
PUBLIC WORKS
EMERGENCY RESPONSE
MUTUAL AID
AGREEMENT
FOR
SIGNATORY AGENCIES
IN THE
STATE OF WASHINGTON
INTRODUCTION
The purpose of the Public Works Emergency Response Mutual Aid Agreement is to
permit signatory agencies to make the most efficient us~ of their powers by enabling
them to coordinate resources and to maximize funding reimbursement during
disasters / emergencies.
This Agreement will allow signatory agencies to support each other during
disasters/emergencies to protect life and property, when the event is beyond the
capabilities of the affected entity. This Agreement provides the mechanism for an
immediate response to the Requesting Agency provided the Responding Agency has
the resources and expertise necessary and available.
When faced with a disaster or emergency, public works agencies have a
responsibility to maintain service and recover in the most expedient way. This can
best be accomplished by preparation, coordination and cooperation with other public
works agencies. Agencies are charged .with the responsibility of coordinating efforts
and compiling damage and recovery information on disasters and then reporting to
the appropriate authority. Then the State requests aid and assistance from the
federal government.
The following definitions for disaster and emergency are from the State
Comprehensive Disaster Plan and were used in this Public Works Emergency
Response Mutual Aid Agreement:
Disaster -
An event expected or unexpected, in which a community's
available, pertinent resources are expended; or the need for
resources exceeds availability; and in which a community
undergoes severe danger; incurring losses so that the social or
economic structure of the community is disrupted; and the
fulfillment of some or all of the community's essential functions
are prevented.
Emergency -
An event, expected or unexpected, involving shortages of time
and resources; that places life, property or the environment, in
danger; that requires response beyond routine incident response
resources.
The reference guide is designed to be useful to individual agencies during a
proclaimed emergency - whether it be to borrow a piece of equipment for a specific
job or request crews to assist in repair of a major failure. The reference guide will be
updated and. revised periodically, please insert the revisions immediale, ly.
AGREEMENT
PUBLIC WORKS
EMERGENCY RESPONSE
MUTUAL AID AGREEMENT
WHEREAS, the purpose of this pre-disaster agreement between the agencies is to
provide for immediate assistance to protect life and property;
WHEREAS, this Agreement is authorized under State of Washington, RCW's 35
(City), 36 (County), 38.52 (Emergency Management), 39.34 (Interlocal Agreement)
and 47 (Public Highway Transportation (DOT)); which is activated only in the event
of a proclamation of an emergency by the local and/or state government approving
authority;
WHEREAS, the agency asking for assistance from any signatory agency will herein
be referred to as the Requesting Agency;
WHEREAS, the signatory agency agreeing to assist another signatory agency asking
for assistance will herein be referred to as the Responding Agency;
WHEREAS, it is necessary and desirable that this Agreement be executed for the
exchange of mutual aid; with the intent to supplement not supplant agency
personnel.
NOW, THEREFORE, it is hereby agreed by each and all of the parties signatory to the
Agreement as follows:
Each agency signatory to this Agreement agrees to furnish, upon its sole
discretion, those resources and services it deems to be available to each other
signatory agency hereto as necessary to assist in the prevention, response,
recovery and mitigation of proclaimed emergencies/disasters.
It is hereby understood that this Agreement shall not supplant pre-existing
mutual aid agreements nor deny the right of any agency hereto to negotiate other
mutual aid agreements.
The Responding Agency shall assist in only those situations for which it has
determined it has qualified personnel, appropriate equipment and necessary
materials. Resources of the Responding Agency that are made available to the
Requesting Agency shall, whenever possible, remain under the control and
direction of the Responding Agency. The Requesting Agency shall coordinate
the activities and resources of all Responding Agencies.
A
o
o
o
°
It is hereby understood that the Responding Agency will be reimbursed (e.g.,
labor, equipment, materials and other related expenses as applicable, including
loss or damage to equipment) at its adopted usual and customary rates. The
Responding' Agency shall submit an itemized voucher of costs to the Executive
Head of the Requesting Agency within sixty (60) days after completion of work
(RCW 38.52.080). Unless otherwise agreed, the Responding Agency shall receive
reimbursement within ninety (90) days after the voucher submittal date.
The Responding Agency shall have no responsibilities or incur any liabilities
because it does not provide resources and/or services to any other party to this
Agreement. The Responding Agency shall retain the right to withdraw some or
all of its resources at any time. Notice of intention to withdraw' shall be
communicated to the Requesting Agency's designated official, or the official's
designee, as soon as practicable.
All privileges, immunities, rights, duties and benefits' of officers and employees
of the Responding Agency shall apply while those officers and employees are
performing functions and duties on behalf of the Requesting Agency, unless
otherwise provided by law. Employees of the Responding Agency remain
employees of the Responding Agency while performing functions and duties on
behalf of the Requesting Agency (RCW 38.52.080).
To the extent permitted by law, the Requesting Agency shall protect, defend, hold
harmless and indemnify all other Responding signatory Agencies, and their
officers and employees from any and all claims, suits, costs, damages of any
nature, or causes of action, including the cost of defense and attorneys fees, by
reason of the acts or omissions, whether negligent, willful, or reckless, of its own
· officers, employees, agency or any other person arising out of or in connection
with any acts or activities authorized by this agreement, and will pay all
judgments, if any, rendered. This obligation shall not include such claims, costs,
damages or other expenses which may be caused by the sole negligence of the
Responding Agencies or their authorized agents or employees.
Authorization and approval of this Agreement shall be in a manner consistent
with the Agency's current procedures. This Agreement shall be effective upon
approval by two or more agencies and shall remain in effect as long as two or
more agencies are parties to this Agreement. Upon execution of this Agreement,
the agency shall send an original or a certified copy of the agreement to the
Washington State Department of Transportation, TransAid Service Center.
TransAid shall maintain a list of all signatory agencies and send an updated list
to all agencies whenever an agency is added or removed from the list.
B
o
Any agency signatory to this Agreement may cancel its participation in this
Agreement by giving written notice to the Washington State Department of
Transportation, TransAid Service Center.
10. This Agreement is for the benefit of the signatory agencies only and no other
person or entity shall have any rights whatsoever under this Agreement as a
third party beneficiary.
Agency
County, Washington
Authorized Representative
Date
Designated Primary Contact:
Office:
Contact:
Phone Number:
Emergency 24 Hour Phone Number:
Approved As To Form
ANN E. SA~Y
Office of the A~om~ G~er
C
Date
REFERENCE GUIDE
~7
PROCEDURES TO CONSIDER
in using the
Public Works Emergency Mutual Aid Agreement
Below are SUGGESTED steps for your agency to follow when using the Public
Works Emergency Response Mutual Aid Agreement. The participants to the
agreement are listed by agency, with a contact person, their phone number and an
emergency 24-hour phone number. Simply make the contact and obtain the
assistance. (TransAid will keep and updated list of signatory agencies on the
Internet and provide a copy to the signatory agencies.)
Requesting Agency Steps to Follow
When your agency is requesting assistance:
1. Assess the situation and determine the resources needed.
2. Fill out the REQUESTING AGENCY'S CHECKLIST (see page 2).
3. Locate agencies included in the agreement.
4. Call the agency(s) listed that may have the resources you need.
5. Fill out a Requesting Agency's MUTUAL AID INFORMATION form (see page 3).
6. Send copy of form to the Responding Agency as soon as possible.
Responding Agency. Steps to Follow
When your agency is responding to a request for assistance:
1. Make sure you can fulfill the request before giving an answer.
Remember, you
are not required to supply aid if you determine you can not spare resources or if
you do not have qualified personnel, appropriate equipment and necessary
materials for what is requested.
2. Analyze the level of risk of the request.
3. Complete the RESPONDING AGENCY CHECKLIST (see page 4) with the
information given by the Requesting Agency.
4. Brief your employees and prepare the equipment.
5. Complete the EMPLOYEE & EQUIPMENT INFORMATION (see page 5) form -
provide copies to your responding staff and to the Requesting Agency.
6. Dispatch staff to the Requesting Agency for assistance.
Supervisor of Responding Agency Steps tO Follow
1. Complete the INCIDENT COMMANDER CHECKLIST (see page 7).
2. Carry a copy of the Requesting Agency's MUTUAL AID INFORMATION (see
page 3) form and your EMPLOYEE & EQUIPMENT INFORMATION (see page 5)
form and provide a copy of each to the Requesting Agency.
3. Remember, you are responsible for your crew working in a safe and professional
manner. - -
4. Track your equipment and materials inventory.
1
REQUESTING AGENCY CHECKLIST
__Ensure that a real need exists. The Public Works Emergency Response
Mutual Aid Agreement is only to be used to support resources already
reasonably committed.
__What can the Responding Agency help you repair or service? What is the
nature of the emergency?
__Identify what type of equipment, material and skilled employees are needed.
__How long may they be needed? Will Responding Agency employees work
independently or with one of your supervisors?
~Where will Responding Agency employees eat, sleep and shower? Do you
need to make contact with the Red Cross for meals? What facilities/hotels
are available for Responding Agency employees?
__Has an arrangement for refueling and repair of equipment been made?
~Identify a staging area. Where will Responding Agency employees meet your
Agency supervisor(s) to be briefed and assigned work? Responding Agency
employees will need names of your supervisor(s), phone numbers and
locations and times to meet and report.
Who Can Help?
__Review list of Public Works Emergency Response Mutual Aid agencies and
locate an agency not affected by the emergency.
__Contact your local Office of Emergency Management, if necessary.
__Call the agency directly. Send written request as soon as possible.
__Identify yourself and your agency.
__Fill out a MUTUAL AID INFORMATION (see page 3) form.
__State the nature of the problem.
__.State your needs - personnel, equipment, resources, etc. Length of time
they will be needed?
__Advise the Responding Agency on weather and road conditions.
How soon is aid needed? Is the work time sensitive?
__Advise the Responding Agency where, when and to whom they are to
report?
__Identify facilities that are available to Responding Agency (shelter,
food, etc.)
Briefing
__Meet with your agency's union reps or supervisors to discuss how staff will be
used.
__Identify a staff person to work directly with your employees to handle and
address questions. Provide local maps of the area with information such as
eating and sleeping sites.
Provide system maps and discuss how to use them.
__Review standards for the type of work being requested.
__Establish a communications plan.
2
DATE:
MUTUAL AID INFORMATION FORM
Requesting Agency
REQUESTING AGENCY:
NAME/TrrLE CONTACT:
PHONE NUMBER:
EMERGENCY PHONE NUMBER:
TYPE OF EMERGENCY:
TIME:
FAX NUMBER:
ESTIMATED DURATION ASSISTANCE WILL BE REQUIRED:
ASSISTANCE BEING REQUESTED (be as specific as possible.)
Technical A~si~tance *
Personnel Area of Expertise
Equipment *
Communication Equipment:
Materials *
Items to consider in your request:
Inspectors
Technicians
Operators
Mechanics
Electricians
Gravel
Oiler
Traffic Control Equip.
Engineers
Truck Drivers
Flaggers
Bridge Repair
Dump Trucks
Pipe
Grader
Power Supply
3
Surveyors
Utility person
Welders
Carpenters
Back Hoe -'
Paving Equipment
Compactor
Communication Equip.
3O
RESPONDING AGENCY CHECKLIST
DATE:
REQUESTING AGENCY:
NAME/TITLE CONTACT:
PHONE NUMBER:
EMERGENCY PHONE NUMBER:
TIME:
FAX NUMBER:
TYPE OF EMERGENCY:
ESTIMATED DURATION ASSISTANCE WILL BE REQUIRED:
Fill out Mutual Aid Information form.
Clarify Need
__Review types of damage and what Responding Agency employees may be
expected to deal with (volcanic ash, earthquake, flooding, etc.)
__Review types of equipment, materials and number of employees needed and
skills required.
How long will your employees be needed? Should a relief crew be prepared?
Where will your employees stay and eat?
__Identify a communications plan for crews.
__How will responding affect your agency's current operations?
__Immediately notify Supervisor, elected officials and TransAid of request for
Emergency Response Mutual Aid.
Preparations
__Identify your responding employees. Review employee selection with union
reps or supervisors. Ask employees to bring necessary personal items.
__Identify Incident Commander for your employees and appoint staff for
operations, planning, logistics and finance.
__Review ER/FEMA documentation procedures with supervisors and initiate
record-keeping requirements.
__Inventory and standardize tools and materials on vehicles. Inspect vehicles
for travel.
__Set up daily check in time between Responding and Requesting agency.
Review progress, identify hours worked, working conditions and status of
crew.
__Send cash (not check) or credit cards with Supervisor for emergency expenses.
__Send mobile phone or ham radio equipment for back up comr~t~nications.
__Be sure emergency food and water are on-each vehicle.
4
EMPLOYEE & EQUIPMENT INFORMATION
Responding Agency
Agency:.
Supervisor of Crew:
Date:
Communication Equipment/Phone Numbers:
Report Time: Report Date:
Report To: Area Assigned:
ASSISTANCE BEING PROVIDED (be as specific as possible)
Supervisor & Crew Employees
Name Emergency Contact Oualifications
& Phone Numbers Fla~rer CPR CDL Overator First Aid
Technical Assistance *
Personnel Area of Expertise
Confined Space:
Equipment *
Truck Type & Size:
Truck Materials Inventory:,
Truck Tools & Equipment Inventory:,
CommunicatiOn Equipment:
5
Materials *
Shoring Needed:
Items to consider in your request:
Inspectors '
Technicians
Operators
Mechanics
Electricians
Gravel
Oiler
Traffic Control Equip.
Engineers
Truck Drivers
Flaggers
Bridge Repair
Dump Trucks
Pipe
Grader
Power Supply
Surveyors
Utility person
Welders
Carpenters
Back Hoe
Paving Equipment
Compactor
Communication Equip.
I copy to Requesting Agency
1 copy to Responding Agency
1 cOpy to Crew Supervisor
6
INCIDENT COMMANDER CHECKLIST
Responding Agency
Upon
Arrival
__Check-in with supervisor on site.
__Review maps, damage information, repair needs and potential crew
assignments. Request information on repair standards.
__Ensure that lodgings, meals and refueling capabilities exist. If not, identify
crew member to work on problem and ask Requesting Agency for assistance.
__Review documentation procedures with Requesting Agency's supervisor and
obtain supplies to track repairs and costs associated with job.
__Establish daily briefing time with Requesting Agency's supervisor.
__Establish daily documentation briefing with Requesting Agency's supervisor
to ensure that tasks are completed.
__Establish working shifts.
Review Communication Plan.
Daily Proces~
__Briefing with supervisors and crew on work assignments and progress.
__Review safety procedures with crew.
__Review events and any problems or positive interaction with Requesting
Agency's employees or customers.
__Ensure lunch and evening food breaks are provided and that a system for
meals, refueling and restocking is maintained.
__Contact Responding Agency for briefing.
__Review documentation at end of each day for accuracy and completion.
Work Termination
Meet with crews to review successes and problems.
__Identify total hours worked and number of repairs.
Total up costs associated with work.
__Allow rest and recovery time before leaving for home.
mutual
7
~,(~ENDA BILL
BRE~ERTON C'rTY COUNC'rL
SUBJECT: Telecommunications
Tower Lease with PageNet of
Seattle
FOR AGENDA OF: November 12~ 1997
ORIGINATING DEPT: Admin. Services
ORIGINATOR: K. McCluskey
DATE SUBMITTED: November 6~ 1997
2. ~: (commen~on back 3. ~:
if ~~ary)
/ /~/ Lease Agreement
City Attorne~,,~
PW&U Director ~~'~ _~
O o~ ~~ '~, ~ ~/
EN~E~NT INSO~TION ~ APPRO~D BY CO~CIL P~DEN~~~M~TTAL:
PageNet of Seattle has proposed locating paging equipment and antenna on
the City owned tower located at Cheryl Street at the site vacated by the
Coast Guard which is on utility property. The proposed lease is for three
years with one additional three year option. Lease compensation would start
at $550 per month with provisions for increases if PageNet expands capacity.
8. RECOMMENDATION:
Motion to approve a three year lease with PageNet to locate on the City
tower at Cheryl Street.
e
RESPONSIBLE OFFICIAL: ~/%~ ~'~
ENFORCEMENT OFFICIAL: ~ ~
EXPIRATION DATE:
REVIEW DATE:
PULLED TABLED
COUNCIL DIRECTIVE:
10. NOTICE OF ACTION
APPROVED DISAPPROVED
DATE:
11.
AGENDA BILL NO:
TEI,ECOMMUNICATIONS FACILITIES
LEASE AGREEMENT
THIS LEASE AGREEMENT entered into by and between the City ofBremerton, a
municipal corporation duly organized and existing under the laws of the State of Washington, as
Lessor (hereinafter referred to as "City") and Paging Network of Oregon, Inc. dba Paging
Network of Seattle, (hereinafter referred to as "Lessee").
WITNESSETH:
1. PREMISES. The City hereby leases to the Lessee real property for housing,
installing, constructing, operating and maintaining certain telecommunications facilities, said real
property and facilities being more specifically described and/or depicted in Schedule A, attached
hereto and specifically incorporated herein (hereinat~er referred to as Premises). Lessee agrees to
accept such real property for such purpose, subject to the considerations, terms and conditions
specified in this Telecommunications Facilities Lease Agreement (hereinatter referred to as
2. DEFINITIONS. For the purpose of this Lease, and the interpretation and
enforcement thereof, the following words and phrases shall have the following meanings, unless
the context of the sentence in which they are used shall indicate otherwise:
"Person" means and includes corporations, companies, associations, joint stock
companies or assodations, firms, partnerships, limited liability companies and individuals and
includes their lessors, trustees and receivers;
"Telecommunications carrier" means and includes every person that directly or
indirectly owns, controls, operates or manages plant, equipment or property within the City, used
or to be used for the purpose of offering telecommunications service;
"Telecommunications facilities" means the plant, equipment and property, including but
not limited to, cables, wires, conduits, ducts, pedestals, antennae, towers, electronics, equipment
storage structures and other appurtenances used or to be used to transmit, receive, distribute,
provide, house or offer telecommunications services;
"Telecommunications provider" means and includes every person who provides
telecommunications services over telecommunications facilities without any ownership or
management control of the facilities;
"Telecommunications service" means the providing or offering for rent, sale or lease, or
in exchange for other value received, of the transmittal of voice, data, image, graphic and video
LEASE AGREEMENT - 1
~ N~v~o~
programming information between or among points by wire, cable, fiber optics, laser, microwave,
radio, satellite or similar facilities, with or without benefit of any closed transmission medium.
3. USES AND PURPOSES. Lessee shall have the use and occupancy of the
Premises for the purpose of transmission and reception of telecommunication and signals in any
and all frequencies using real property and telecommunications facilities described in Schedule
Lessee shall have the right, at its expense, to erect and maintain on the Premises
improvements, personal property and facilities, as described in Schedule A.
City shall provide Lessee ingress, egress, and twenty-four hour a day, seven days a week
access over the property to the Premises adequate to service the Premises and the
telecommunication facilities at all times during this Lease at no additional charge to Lessee. City
shall furnish the Premises to Lessee in good condition and repair and shall maintain the Site in a
manner which will not interfere with Lessee's reasonable use of site.
4. LEASE APPLICATION. Any person that desires to solicit the City's approval
of a Lease shall file a lease proposal with the City which shall include the following:
A. The identity and legal status of the applicant, including any affiliates;
B. The name, address, telephone number and title of the officer, agent or
employee responsible for the accuracy of the lease application statement;
C. A description of the service that the applicant intends to offer or provide,
or is currently offering or providing to persons, firms, businesses or institutions within the City,
or to those outside the City limits using facilities located within the City;
D. A description of the telecommunications facilities or other equipment
proposed to be located upon City property;
E. A description of the City property upon which the applicant proposes to
locate telecommunications facilities or other equipment;
F. Signed set of owners drawings, preliminary plans and specifications in
sufficient detail to identify:
(1)
Manufacturer standards, punch list on workmanship inspections for
future sign-offby City inspectors for all telecommunication facilities
being proposed by Lessee.
LEASE AGREEMENT - 2
Pagin~ Network
(2)
The location(s) of existing telecommunications facilities or other
equipment upon the City property, whether publicly or privately
owned.
(3)
The location and source of electric and other utilities required for
the installation and operation of the proposed facilities.
G. Accurate scale conceptual drawings and diagrams of sufficient specificity
to analyze the aesthetic impacts of the proposed telecommunications facilities or other equipment;
H. Whether the applicant intends to provide cable service, video dialtone
service or other video programming service, and sufficient information to determine whether such
service is subject to cable franchising;
An accurate map showing the location of any existing telecommunications
facilities in the City that applicant intends to use or lease;
J. A description of the services or facilities that the applicant will offer or
make available to the City and other public, educational and governmental institutions;
K. Evidence that the applicant has explored possible co-location sites on
existing tower sites on City or private property.
L. Such other and further information as may be requested by the City; and
M. An application fee of Five Hundred and No/100 Dollars ($500.00).
5. NON-EXCLUSIVE LEASE. This Lease is nonexclusive and does not preclude
the City from granting a similar lease, right, license, franchise, etc. to other carriers, providers or
other persons for telecommunications or any other purpose.
6. TERM OF LEASE. This Lease shall be valid for a term of three (3) year(s)
commencing ,19 and terminating ~ 19
including an option to renew for one additional three (3) year term pursuant to Section 13
hereunder. Compensation will be renegotiated for renewal option.
7. RIGHTS GRANTED. This Lease does not convey any right, title or interest in
the City property, but shall be deemed a license only to use and occupy the City property for the
limited purposes and term stated in the Lease. Further, this Lease shall not be construed as any
warranty of title.
8. INTERFERENCE WITH OTHER USERS. The Lessee acknowledges that the
City may enter into leases with other tenants for their equipment and telecommunications facilities
LEASE AGREEMENT - 3
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for the purposes of transmitting and receiving telecommunication signals from City property. The
City, however, is not in any way responsible or liable for any interference with Lessee's use of the
City property which may be caused by the use and operation of any other tenant's equipment,
even if caused by new technology. In the event that any other tenant's activities interfere with the
Lessee's use of the City property, and the Lessee cannot resolve this interference with the other
tenants, the Lessee may, upon 30 days notice to the City, terminate this lease and restore the City
property to its original condition, reasonable wear and tear excepted. The Lessee shall cooperate
with all other tenants to identify the causes of and work towards the resolution of any electronic
interference problem. In addition, the Lessee agrees to eliminate any radio or television
interference caused to City-owned facilities or surrounding residences at Lessee's own expense
and without installation of extra filters on City-owned equipment.
9. OWNERSltlP AND REMOVAL OF IMPROVEMENTS. All buildings,
landscaping and all other improvements, except telecommunications equipment, shall become the
property of the City upon expiration or termination of the Lease. In the event that the City
requires removal of such improvements at~er termination of the Lease, such removal shall be
accomplished at the sole expense of the Lessee and completed within 30 days after receiving
notice from the City requiting removal of the improvements. Additional time may be granted
upon the discretion of the City which approval shall not be unreasonably withheld. In the event
that telecommunications facilities or other equipment are lef~ upon City property after expiration
or termination of the lease, they shall, at the City's option, become the property of the City if not
removed by the Lessee upon 30 days written notice from the City.
10. CANCELLATION OF LEASE BY LESSEE.
A. All Leases are contingent upon the Lessee obtaining all necessary permits,
approvals and licenses for the proposed facilities. In the event that the Lessee is unable to obtain
all such permits, approvals and licenses, it may cancel its lease, and obtain a pro rata refund in any
rents paid, without further obligation by giving 30 days prior written notice to the City.
B. In the event that the holder of a Lease determines that the City property is
unsuitable for its intended purpose, the Lessee shall have the right to cancel the Lease upon 120
days written notice to the City. However, no prepaid rent shall be refundable.
11. COMPENSATION TO THE CITY.
A. This Lease is subject to the City's right, which is expressly reserved, to
annually fix a fair and reasonable compensation to be paid for the rights granted to the Lessee;
starting on the Commencement Date and on the first day of each month thereat~er during the term
of the Lease, Lessee shall pay rent at a rate of Five Hundred Fifty and No/100 Dollars ($550.00)
per month, prorated for any partial months. Lessee shall have the right to add additional
equipment and antennas to the site with prior approval from the City; which approval shall not be
unreasonable withheld. Lessee agrees to pay additional monthly rent in the amount of Fifty and
LEASE AGREEMENT - 4
No/100 Dollars ($50.00) for each additional antenna added to the initial configuration. Lessee
shall pay applicable leasehold excise tax.
At the beginning of each successive year thereafter, the monthly rent shah automatically be
adjusted by the increase in the Consumer Price Index for All Urban Consumer Scale (CPI-U) U.S.
AH City Average (1982-84=100), as published by the Bureau of Labor Statistics for the last
month for which statistics are posted prior to effective date of this agreement (the "Index").
However, rent shah not, in any case, decrease.
Any payments received a~er the due date shah include a late payment penalty of 2% of the
annual rental fee for each day or part thereof past the due date. The rental fee rate will be
reviewed annually.
12. AMENDMENT OF LEASE. Except as provided within the existing Lease,
letter of intent shah be required of any telecommunications cartier or other entity that desires to
expand, modify, or relocate its telecommunications facilities or other equipment located upon City
property. The City reserves the fight to require a new lease application if the proposed
modifications entail substantial City review. If ordered by the City to locate or relocate its
telecommunications facilities or other equipment on the City property, the City shah grant a lease
amendment without further application.
13. RENEWAL APPLICATION. A Lessee that desires to renew its Lease under
this Article shall, not more than one hundred twenty (120) days nor less than sixty (60) days
before expiration of the current Lease, file an application with the City for renewal of its Lease
which shall include the following:
A. The information required pursuant to Section 4;
B. Any additional information required based upon elements of the current
Lease agreement between the City and the Lessee;
C. All deposits or charges required pursuant to City ordinances;
($500.00).
An application fee in the amount of Five Hundred and No/100 Dollars
14. OBLIGATION TO CURE AS A CoNDmON OF RENEWAL. No Lease
shall be renewed until any ongoing violations or defaults in the Lessee's performance of the Lease
have been cured, or a plan detailing the corrective action to be taken by the Lessee has been
approved by the City.
LEASE AGREElVIENT - 5
15. IMPROVEMENTS. Following the Commencement Date, Lessee shall have the
right to construct the Telecommunication Facility in accordance with the attached Schedule B
which is hereby approved for construction by City pursuant to periodic sign-off of installation and
workmanship by City. Lessee shall obtain the consent of City, which consent shall not be
unreasonably withheld, for any modifications required to accommodate the Telecommunications
Facility not shown in Schedule C which require an amendment to the building permit or owner
drawings and specifications. Lessee shall obtain all permits and approvals necessary for Lessee to
be legally entitled to construct the Telecommunications Facility prior to commencing construction
and shall provide City with five (5) days notice prior to the start of construction to permit City to
post notices of non-responsibility. All Lessee contractors and subcontractors shall be duly
licensed in the state of Washington.
16. POLICE POWER. In accepting this Lease, the Lessee acknowledges that its
rights hereunder are subject to the legitimate rights of the police power of the City to adopt and
enforce general ordinances necessary to protect the safety and welfare of the public and it agrees
to comply with all applicable general laws enacted by the City pursuant to such power.
17. INTERFERENCE WITH THE PUBLIC WAYS. The Lessee shall not locate
or maintain its telecommunications facilities so as to unreasonably interfere with the use of the
public ways by the City, by the general public or by other persons authorized to use or be present
in or upon the public ways. All such facilities shall be moved by the Lessee, at the Lessee's cost,
temporarily or permanently, as determined by the City Public Works and Utilities Director.
18. REPAIR AND EMERGENCY WORK. In the event of an unexpected repair or
emergency, the Lessee may commence such repair and emergency response work as required
under the circumstances, provided the Lessee shall notify the City as promptly as possible, before
such repair or emergency work commences or as soon thereafter as possible if advance notice is
not practicable.
19. MAINTENANCE OF LEASE FACILITIES. The Lessee shall maintain its
facilities in good and safe condition and in a manner that complies with all applicable federal, state
and local requirements. Lessee shall not permit waste, damage, or injury to the premises
including any City property, public ways of the City, other ways or other property, whether
publicly or privately owned, located in, on or adjacent thereto. City shall have the exclusive right
to inspect the Lessee's telecommunications facilities and equipment at any time during the term of
this Lease to ensure compliance with-the terms and conditions herein; Providec~ however, Lessee
has the right to be present at all inspections of Lessee's telecommunications facilities and
equipment, and City shall give Lessee at least 24 hours prior notice of such intent.
20. SIGNAGE. Lessee shall display a current sign on telecommunication facilities
identifying Lessee and a 24 hour phone number.
LEASE AGREEMENT - 6
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21. RELOCATION OR REMOVAL OF FACILITIES. Within thirty (30) days
following written notice from the City, the Lessee shall, at its own expense, temporarily or
permanently remove, relocate, change or alter the position of any telecommunications facilities
within the public ways or upon City property whenever the City Public Works & Utilities Director
shall have determined that such removal, relocation, change or alteration is reasonable necessary
for:
A. The construction, repair, maintenance or installation of any City or other
public improvement in or upon the public ways; and
public ways.
The operations of the City or other governmental entity in or upon the
22. REMOVAL OF UNAUTtlORIZED FACILITIES. Within one hundred twenty
(120) days following written notice from the City, Lessee or any person who owns, controls or
maintains on behalf of Lessee any unauthorized telecommunications system, facility or related
appurtenances within the public ways or real propen3r of the City shall, at its own expense,
remove such facilities or appurtenances from the public ways or property of the City. A
telecommunications, system or facility is unauthorized and subject to removal in the following
circumstances:
A. Upon expiration or termination of the Lessee's Lease without renewal;
B. Upon abandonment of a facility within the public ways or real property of
the City. Any property of a Lessee shall be deemed abandoned iflef~ in place 30 days after
expiration or termination of the Lease;
of a Lease;
Ce
If the system or facility was constructed or installed without the prior grant
D. If the system or facility was constructed or installed without the prior
issuance of a required City permits; and
E. If the system or facility was constructed or installed at a location not
permitted by the Lease.
Provided, however, that the City may, in its sole discretion, allow a Lessee, or other such
persons who may own, control, or maintain telecommunications facilities within the public ways
or property of the City to abandon such facilities in place. No facilities of any type may be
abandoned in place without the express written consent of the City. Any plan for abandonment or
removal of a Lessee's facilities must be first approved by the Public Works and Utilities Director,
and all necessary permits must be obtained prior to such work. Upon permanent abandonment of
the property of such persons in place, the property shall become that of the City, and such persons
LEASE AGR~MENT - 7
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shall submit to the City an instrument in writing, to be approved by the City Attorney, transferring
to the City the ownership of such property in which event, Lessee shall have no further
obligations or liability with respect to such facilities. The provisions of this Section shall survive
the expiration, revocation, or termination of the Lease granted hereunder.
25. EMERGENCY REMOVAL OR RELOCATION OF FACII.ITIES. The City
retains the fight and privilege to cut or move any telecommunications facilities located within the
public ways of the City and upon City property, as the City may determine to be necessary,
appropriate or useful in response to any public health or safety emergency. The City shall not be
liable to Lessee, or any other party for any direct, indirect, or any other such damages suffered by
any person or entity of any type as a direct or indirect result of the City's actions under this
Section.
24. · DAMAGE TO FACILITIIgS. Unless directly and proximately caused by the
willful, intentional or malicious acts by the City, the City shall not be liable for any damage to or
loss of any telecommunications facility upon City property or within the public ways of the City as
a result of or in connection with any public works, public improvements, construction, excavation,
grading, filling, or work of any kind on such City property or within the public ways by or on
behalf of the City.
25. RESTORATION OF PUBLIC WAYS, OTltER WAYS AND CITY
PROPERTY.
A. When the Lessee, or any person acting on its behalf, does any work in or
affecting any public ways, other ways or City property, it shall, at its own expense, promptly
remove any obstructions therefrom and restore such ways or property to City construction
standards as adopted before the work was undertaken, unless otherwise directed by the City.
B. If'weather or other conditions do not permit the complete restoration
required by this Section, the Lessee shall temporarily restore the affected ways or property. Such
temporary restoration shall be at the Lessee's sole expense and the Lessee shall promptly
undertake and complete the required permanent restoration when the weather or other conditions
no longer prevent such permanent restoration.
C. The Lessee or other person acting in its behalf shall use suitable barricades,
flags, flagmen, lights, flares and other measures as required for the safety of all members of the
general public and to prevent injury or damage to any person, vehicle or property by reason of
such work in or affecting such ways or property.
D. The Public Works and Utilities Director shall be responsible for inspection
and final approval of the condition of the public ways, other ways, and City property following
any construction and restoration activities therein. Further, the provisions of this Section shall
survive the expiration, revocation, or termination of this Lease.
LEASE AGREEMENT - 8
26. FA~JTIES MAPS. The Lessee shall provide the City with a map or maps
accurately reflecting the horizontal and vertical location and configuration of all of their
telecommunications facilities within the public ways and upon City property. The Lessee shall
provide the City with updated maps upon request by the City.
27. BOOKS, RECORDS AND MAPS. All books, records, maps and other
documents, maintained by the Lessee with respect to its telecommunications facilities within the
public ways and upon City property shall be made available for inspection by the City at
reasonable times and intervals; Provided, however, that nothing in this Section shall be construed
to require the Lessee to violate state or federal law regarding subscriber privacy, nor shall this
Section be construed to require the Lessee to disclose proprietary or confidential information
without adequate safeguards for its confidential or proprietary nature.
28. LEASED CAPACITY AND CO-LOCATION. Lessee shall have the fight, with
prior City approval, to sublet the premises consistent with this Lease; provided:
A. The Lessee shall furnish the City with a copy of any such proposed lease or
agreement between the Lessee and its sub-lessee;
B. The sub-lessee has complied, to the extent applicable, with the
requirements contained in this Lease;
property;
Ce
The Lessee owns and/or controls the tower facility located on City
D. The City and Lessee shall agree upon additional rental fee for sub-lessee
hook-ups pursuant to Section 11.
The City encourages co-location on existing telecommunications facilities and to that end
will not unreasonably withhold approval of sub-leases.
29. UTII,ITIES. Electricity is to be provided to the Premises and Site at Lessee's
initial expense and as outlined in Schedule A. Monthly lease payments to the City will be offset
until Lessee is reimbursed for installation costs of electricity. Ongoing monthly electric bills will
be paid by Lessee.
30. LICENSES AND TAXES. Upon commencement of the Lease, Lessee shall be
responsible for paying real or personal property, excise leasehold, business and occupation, and/or
other taxes or licenses which may in the future be assessed as a direct result of the Lessee's
operations at the telecommunications facilities described herein.
31. INSURANCE. The Lessee shall, as a condition of the Lease, secure and maintain
the following liability insurance policies insuring both the Lessee and the City, and its elected and
LEASE AGREEMENT - 9
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appointed officers, officials, agents, employees, representatives, engineers, consultants, and
volunteers as co-insureds against claims for injuries to persons or damages to property which may
arise from or in connection with the exercise of the fights, privileges, and authority granted to the
Lessee:
A. Comprehensive general liability insurance, written on an occurrence basis,
with limits not less than:
(1) $2,000,000.00 for bodily injury or death to each person;
(2)
$2,000,000.00 for property damage resulting from any one
accident; and
(3) $2,000,000.00 for all other types of liability.
B. Automobile liability for owned, non-owned and hired vehicles with a limit
of $2,000,000.00 for each person and $2,000,000.00 for each accident;
C. Worker's compensation within statutory limits and employer's liability
insurance with limits of not less than $1,000,000.00;
D. Comprehensive form premises-operations, explosions and collapse hazard,
underground hazard and products completed hazard with limits of not less than $2,000,000.00;
E. The liability insurance policies required by this Section shall be maintained
by the Lessee throughout the term of the Lease, and such other period of time during which the
Lessee is operating without a Lease hereunder, or is engaged in the removal of its
telecommunications facilities. The Lessee shall provide an insurance certificate, together with an
endorsement naming the City, and its elected and appointed officers, officials, agents, employees,
representatives, engineers, consultants, and volunteers as additional insureds, to the City prior to
the commencement of any work or installation of any facilities pursuant to said Lease. Any
deductibles or self-insured retentions must be declared to and approved by the City. Payment of
deductibles and self-insured retentions shall be the sole responsibility of the Lessee. The
insurance certificate required by this Section shall contain a clause stating that coverage shall
apply separately to each insured against whom claim is made or suit is brought, except with
respect to the limits of the insurer's liability. The Lessee's insurance shall be primary insurance as
respects the City, its officers, officials, employees, agents, consultants, and volunteers. Any
insurance maintained by the City, its officers, officials, employees, consultants, agents, and
volunteers shall be in excess of the Lessee's insurance and shall not contribute with it;
F. In addition to the coverage requirements set forth in this Section, each such
insurance policy shall contain the following endorsement:
I.F.A. SE AGRF, EMENT - 10
"It is hereby understood and agreed that this policy may not be canceled nor the
intention not to renew be stated until thirty (30) days after receipt by the City, by
registered mail, of a written notice addressed to the Administrative Services
Director of such intent to cancel or not to renew."
G. Within 30 days after receipt by the City of said notice, and in no event later
than 15 days prior to said cancellation or intent not to renew, the Lessee shall obtain and furnish
to the City replacement insurance policies meeting the requirements of this Section.
32. GENERAL INDEMNIFICATION. The Lessee hereby releases, covenants not
to bring suit and agrees to indemnify, defend and hold harmless the City, its elected and appointed
officials, officers, employees, agents, representatives, engineers, and consultants from any and all
claims, costs, judgments, awards, or liability to any person, including claims by the Lessee's own
employees to which the Lessee might otherwise be immune under Title 51 RCW, arising from
injury or death of any person or damage to property of which the negligent acts or omissions of
the Lessee, its agents, servants, officers, or employees in performing under this Lease are the
proximate cause. The Lessee further releases, covenants not to bring suit and agrees to
indemnify, defend and hold harmless the City, its elected and appointed officials, officers,
employees, agents, representatives, engineers, and consultants from any and all claims, costs,
judgments, awards, or liability to any person including claims by the Lessee's own employees,
including those claims to with the Lessee might otherwise have immunity under Title 51 RCW,
arising against the City solely by virtue of the City's ownership or control of the rights-of-way or
other public properties, by virtue of the Lessee's exercise of the rights granted herein, or by virtue
of the City's permitting the Lessee's use of the City's rights-of-way or other public property,
based upon the City's inspection or lack of inspection of work performed by the Lessee, its agents
and servants, officers or employees in connection with work authorized on the City's property or
property over which the City has control, pursuant to this Lease, or pursuant to any other permit
or approval issued in connection with this lease. This covenant of indemnification shall include,
but not be limited by this reference, claims against the City arising as a result of the negligent acts
or omissions of the Lessee, its agents, servants, officers, or employees in barricading, instituting
trench safety systems or providing other adequate warnings of any excavation, construction, or
work in any public right-of-way or other public property in performance of work or services
permitted under this Lease.
Inspection or acceptance by the City of any work performed by the Lessee at the time of
completion of construction shall not be grounds for avoidance of any of these covenants of
indemnification. Said indemnification obligations shall extend to claims which are not reduced to
a suit and any claims which may be compromised prior to the culmination of any litigation or the
institution of any litigation.
In the event that the Lessee refuses the tender of defense in any suit or any claim, said
tender having been made pursuant to the indemnification clauses contained herein, and said refusal
is subsequently determined by a court having jurisdiction (or such other tribunal that the parties
LEASE AGREEMENT - 11
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shall agree to decide the matter), to have been a wrongful refusal on the part of the Lessee, then
the Lessee shall pay all of the City's costs for defense of the action, including all reasonable expert
witness fees and reasonable attorneys' fees and the reasonable costs of the City, including
reasonable attorneys' fees of recovering under this indemnification dame.
In the event of liability for damages arising out of bodily injury to persons or damages to
property caused by or resulting from the concurrent negligence of the Lessee, and the City, its
officers, employees and agents, the Lessee's liability hereunder shall be only to the extent of the
Lessee's negligence. It is further specifically and expressly understood that the indemnification
provided herein constitutes the Lessee's waiver of immunity under Title 51 RCW, solely for the
purposes of this indemnification. This waiver has been mutually negotiated by the parties.
The provisions of this Section shall survive the expiration or termination of this Lease
agreement.
Notwithstanding any other provisions of this Section, the Lessee assumes the risk of
damage to its facilities located in the City's public ways, rights-of-way, easements, and property
from activities conducted by the City, its officers, agents, employees, and contractors. The Lessee
releases and waives any and all claims against the City, its officers, agents, employees, or
contractors for damage to or destruction of the Lessee's facilities caused by or arising out of
activities conducted by the City, its officers, agents, employees, and contractors, in the public
ways, fights-of-way, easements, or property subject to this Lease, except to the extent any such
damage or destruction is caused by or arises from the sole negligence or any willful or malidous
action on the part of the City, its officers, agents, employees, or contractors. The Lessee further
agrees to indemnify, hold harmless and defend the City against any claims for damages, including
but not limited to, business interruption damages and lost profits, brought by or under users of the
Lessee's facilities as the result of any interruption of service due to damage or destruction of the
user's facilities caused by or arising out of activities conducted by the City, its officers, agents,
employees, or contractors, except to the extent any such damage or destruction is caused by or
arises from the sole negligence or any willful or malicious actions on the part of the City, its
officers, agents, employees, or contractors.
33. CONSTRUCTION AND COMPLETION BOND. A performance bond written
by a corporate surety acceptable to the City equal to at least 100% of the estimated cost of
constructing the Lessee's telecommunications facilities within the public ways of the City or upon
City property shall be deposited before construction is commenced.
A. Except as provided below, the construction bond shall remain in force until
60 days after substantial completion of the work, as determined by the City, including restoration
of public ways and other property affected by the construction.
B. The construction bond shall guarantee, to the satisfaction of the City:
LEASE AGREEMENT - 12
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(1) Timely completion of construction;
(2)
Construction in compliance with applicable plans, permits, technical
codes, and standards;
O) Proper location of the facilities as approved by the City;
(4)
Restoration of the public ways and other public or private property
disrupted, damaged, or otherwise affected by the construction. The
construction bond shall warrant said restoration work for a period
of 1 year;
(s)
The submission of'as-built' drawings after completion of the work
as required by this Chapter; and
(6)
Timely payment and satisfaction of all claims, demands or liens for
labor, material or services provided in connection with the work.
34. ASSIGNMENTS OR TRANSFERS OF LEASE. Ownership or control of a
Lease may not, directly or indirectly, be transferred, assigned or disposed of by sale, lease,
merger, consolidation or other act of the Lessee, by operation of law or otherwise, without the
prior written consent of the City, which consent shall not be unreasonably withheld or delayed,
except as expressed by ordinance and then only on such reasonable conditions as may be
prescribed therein.
A. No Lease shall be assigned or transferred in any manner within twelve (12)
months after the initial grant of the Lease, unless otherwise provided.
B. Absent extraordinary and unforeseeable circumstances, system or integral
part of a system shall be assigned or transferred before construction of the telecommunications
facility has been completed.
C. The Lessee and the proposed assignee or transferee of the system shall
provide and certify the following information to the City not less than sixty (60) days prior to the
proposed date of transfer:
(1)
Complete information setting forth the nature, terms and condition
of the proposed transfer or assignment;
(2)
All information required of a lease applicant pursuant to Section 4
with respect to the proposed transferee or assignee;
(3) Any other information reasonably required by the City; and
LEASE AGREEMENT - 13
(4) An application fee set by Section 4.
D. No transfer shall be approved unless the assignee or transferee has the
legal, technical, financial, and other requisite qualifications to own, hold and operate the
telecommunications facility pursuant to this Lease.
E. Unless otherwise provided in this Lease, the Lessee shall reimburse the
City for all direct and indirect costs and expenses reasonably incurred by the City in considering a
request to transfer or assign this Lease. No approval shall be deemed approved until ali such
costs and expenses have been paid.
F. Any transfer or assignment of the lease, system, or integral part of a system
without prior written approval of the City under this Section or pursuant to the Lease shall be
void and is cause for revocation of the lease.
35. TRANSACTIONS AFFECTING CONTROL OF LEASE. Any transactions
which singularly or collectively result in a change of 50% or more of the ownership or working
control of the Lessee, of the ownership or working control &the telecommunications facility, of
the ownership or working control of affiliated entities having ownership or working control of the
Lessee or of a telecommunications facility, or of control of the capacity or bandwidth of the
Lessee's telecommunication system, facilities or substantial parts thereof, shall be considered an
assignment or transfer requiting City approval pursuant to Section 34 hereof. Transactions
between affiliated entities are not exempt from City approval. The Lessee shall promptly notify
the City prior to any proposed change in, or transfer of, or acquisition by any other party of
control of Lessee's company. Every change, transfer, or acquisition of control of a Lessee's
company shall cause a review of the proposed transfer. In the event that the City adopts a
resolution or other appropriate order denying its consent and such change, transfer or acquisition
of control has been effected, the City may cancel the Lease. Approval shall not be required for
mortgaging purposes or if said transfer is from the Lessee to another person or entity controlling,
controlled by, or under common control with the Lessee.
36. REVOCATION OR TERMINATION OF LEASE. The Lease granted by the
City to use or occupy public ways of the City or City property may be terminated for the
following reasons:
A. Lessee's construction or operation in the City or in the public ways of the
City or upon City property without proper City authorization;
B. Lessee's construction or operation at an unauthorized location;
C. Unauthorized substantial transfer of control of the Lessee;
D. Unauthorized assignment of Lease;
LEASE AGREEMENT - 14
E. Unauthorized sale, assignmem or transfer of Lessee's Lease, assets, or a
substantial interest therein;
F. Misrepresemation by or on behalf of the Lessee in any application or
written statement upon which the City relies in making the decision to grant, review or amend
said Lease;
City property;
Abandonment of telecommunications facilities in the public ways or upon
H. Failure to relocate or remove facilities as required in this Lease;
Failure to pay taxes, compensation, fees or costs when and as due the City;
J. Insolvency or bankruptcy of the Lessee; and
K. Violation of any material provision or term of this lease.
37. NOTICE AND DUTY TO CURE. In the event that the City believes that
grounds exist for revocation of this Lease, the Lessee shall be given written notice of the apparent
violation, default, or noncompliance, providing a short and concise statement of the nature and
general facts of the violation or noncompliance, and providing the Lessee a reasonable period of
time not exceeding 30 days to furnish evidence:
A. That corrective action has been, or is being actively and expeditiously
pursued, to remedy the violation, default or noncompliance;
B. That rebuts the alleged violation, default or noncompliance; and
C. That it would be in the public interest to impose some penalty or sanction
less than revocation.
38. HEARING. In the event that the Lessee fails to provide evidence reasonably
satisfactory to the City as provided in Section 37 hereof, the City shall refer the apparent
violation, default or non-compliance to the City Council. The City Council shall provide the
Lessee with notice and a reasonable opportunity to be heard concerning the matter.
39. STANDARDS FOR REVOCATION OR LESSER SANCTIONS. If the City
Council determines that a Lessee willfully violated or failed to comply with any of the provisions
of this Lease or through willful misconduct or gross negligence failed to heed or comply with any
notice given the Lessee by the City under the provisions of this Lease, then the Lessee shall, at the
election &the City Council and upon thirty (30) days prior written notice by City, forfeit all rights
conferred hereunder and the Lease may be revoked or annulled by the City Council. The City
LEASE AGR~.~MENT - 15
Council may elect, in lieu of the above and without any prejudice to any of its other legal rights
and remedies, to pursue other remedies, including obtaining an order fi.om the Superior Court
having jurisdiction compelling the Lessee to comply with the provisions of this Lease, and to
recover damages and costs incurred by the City by reason of the Lessee's failure to comply. The
City Council shall utilize the following factors in analyzing the nature, circumstances, extent, and
gravity of the violation and in making it's determination under this Section:
A. Whether the misconduct was egregious;
B. Whether substantial harm resulted;
C. Whether the violation was intentional;
requirements;
Whether there is a history of prior violations of the same or other
E. Whether there is a history of overall compliance; and
F. Whether the violation was voluntarily disclosed, admitted or cured.
40. NOTICE OF ENTRY ON PRIVATE PROPERTY. If directed by the City, at
least 24 hours prior to entering private property or streets or public easements adjacent to or on
such private property to perform new construction or reconstruction, a notice indicating the
nature and location of the work to be performed shall be physically posted, at no expense to the
City, upon the affected property by the Lessee. A door hanger may be used to comply with the
notice and posting requirements of this Section. The Lessee shall make a good faith effort to
comply with the property owner/resident's preferences, if any, on location or placement of
underground installations (excluding aerial cable lines utilizing existing poles and existing cable
paths), consistent with sound engineering practices. Provided, however, that nothing in this Lease
shall permit the Lessee to unlawfully enter or construct improvements upon the property or
premises of another.
41. SAFETY REQUIREMENTS. The Lessee, in accordance with applicable
federal, state, and local safety requirements shall, at all times, employ ordinary care and shall
install and maintain and use commonly accepted methods and devices for preventing failures and
accidents which are likely to cause damage, injury, or nuisance to the public and/or workers. All
structures and all lines, equipment and connections in, over, under, and upon the streets,
sidewalks, alleys, and public ways or places of a Lease area, wherever situated or located, shall at
all times be kept and maintained in a safe, suitable condition, and in good order and repair. The
City reserves the general right to see that the telecommunications facility of the Lessee is
constructed and maintained in a safe condition. Ifa violation of the National Electrical Safety
Code or other applicable regulation is found to exist by the City, the City will, after discussions
with the Lessee, establish a reasonable time for the Lessee to make necessary repairs. If the
LEASE AGREEMENT - 16
Pagh~ N~work
repairs are not made within the established time flame, the City may make the repairs itself or
have them made and collect all reasonable costs thereof from the Lessee.
42. LIENS. Lessee shall not permit any lien to be imposed upon the property of the
City as a result of work done by or on behalf of user and shall indemnify and hold the City
harmless against any and all expenses, including reasonable attorney's fees and court costs in
connection with any such lien.
43. MISCELLANEOUS.
A. This agreement shall be governed by the laws of the State of Washington.
B. The substantially prevailing party in any litigation arising hereunder shall be
entitled to its reasonable attorney's fees and court costs, including appeals, if any.
C. Each party agrees to furnish the other, within ten (10) days after request,
such truthful estoppel information as the other may reasonably request.
D. This Lease constitutes the entire agreement and understanding of the
parties, and supersedes all offers, negotiations and other agreemems. There are no
representations or understandings of any kind not set forth herein. Any amendments to said Lease
must be in writing and executed by both parties.
E. If either party is represented by a real estate broker in this transaction, that
party shall be fully responsible for any fee due such broker.
F. If any term of this Lease is found to be void or invalid, such invalidity shall
not affect the remaining terms of this Lease, which shall continue in full force and effect.
G. Any notice or demand required to be given herein shall be made by certified
or registered mail, remm receipt requested, to the address of the respective parties set forth
below:
LESSOR:
City of Bremerton
Administrative Services Director
239 Fourth Street
Bremerton, WA 98337
LESSEE:
Paging Network of Oregon, Inc.
dba Paging Network of Seattle
13801 Eastgate Way, Suite 150
Bellevue, WA 98005
44. NONDISCRIMINATION. Lessee shall not discriminate in employment or
services to the public on the basis of race, color, national origin, sex, religion, age, marital status
or disability, except employment actions based on a bona fide occupational qualification.
I.F. ASE AGREEMENT - 17
Paging N~two~k
PAGING NETWORK OF OREGON, INC.
Date;
G. BRAD TERRY
Vice President, General Manager
CITY OF BREMERTON
Date:
LYNN S. HORTON, Mayor
DEPARTMENTAL APPROVAL:
W. Eugene Sampley, Director of Public Works & Utilities
APPROVED AS TO FORM:
IAN R. SIEVERS, City Attorney
//
LEASE AGREEMENT - 18
State of Washington
County of Kitsap
SS.
On this __ day of ,19 , personally appeared Lynn S.
Horton to me known to be the Mayor of the City ofBremerton, a municipal corporation, that
executed the within and foregoing instrument, and acknowledged said instrument to be the free
and voluntary act and deed of said municipal corporation, for the uses and purposes therein
mentioned, and on oath stated that she was authorized to execute said instrument.
In witness whereof I have hereunto set my hand and affixed my official seal the day and
year first above written.
Notary Public in and for the State of Washington
Residing at
My commission expires:
RECEIVED FOR FILING:
KATHLEEN L. M~CLUSKEY, City Cl~'k
I.EASE AGREEMENT - 19
October 29, 1997
City of Bremerton
Tax and License Division
239 4th Street
Bremerton, Washington 98337
City of Bremerton:
Paging Network of Seattle proposes to lease tower space on an existing
telecommunications tower and ground space in a existing building, both structures
located on City of Bremerton property at 1925 East Cheryl Street, Kitsap County, for the
purpose of installing, operating and maintaining telecommunications equipment for
wireless, two-way paging.
The proposed telecommunications equipment to be installed and the locations of existing
telecommunication equipment and facilities are described in the attached exhibits.
Electricity is available at the site and will be provided by the City of Bremerton. Their
are no telephone facilities on the property.
A legal description of the City owned property is also included in the attached exhibits.
The identities of the applicant and the employee responsible for lease accuracy are:
Paging Network of Oregon, Inc.
dba Paging Network of Seattle
13801 Eastgate Way / Suite 150
Bellevue, WA 98005
G. Brad Terry
Vice President, General Manager
Paging Network of Seattle thanks The City of Bremerton for their time and
consideration in this matter.
Cordially,
Neil Hattenburg, The TEA Group, Agent for Paging Network of Seattle
W i T N E S S, TH: -
1. Premises. The City is =he legal owner of the following
described real proper~¥:
A parcel.of land located in the N.W. 1/4 of the
S.W. 1/4 of the N.E. 1/4 o£ Sec=ion i Township 24
N., Range 1 East o~the Willamette Meridian. K~own
as CS-18 Coast Guard Site located at Cheryl Street
and olympus Avenue in East Bremerton;
ALSO:
A 40' x a0' parcel of land located in the S.W.
1/4 of the N.E. 1/4 of Section 1, T. 24 N., R.
i E..of the Willamette Meridian. Parcel is
within the boundaries of a ten acre parcel
(660' x 660') owned by =he City of Bremerton,
bounded by Cheryl Street on the North and
Forest Drive on the East, more particularly
described by City of Bremer~on Survey Pla=,
Exhibit "A" which is attached hereto and made
a par~ hereof by ~hi~ reference.
RIOOELL, RD
CAI~q tN
L TRIJC
AST BI~F~MERTON
SITE: Bremerton
LESSEE'S ANTENNA & EQUIPMENT SPECIFICATIONS (CORE)
FREQUENCIES:
TRANSMIT
929.1125 - 929.8625 MHZ
931.1875 - 931.4125 MHZ
RECEIVE
Satellite
ANTENNAS: TYPE QTY PRODUCT NO.
DIMENSIONS (APPROX.)
Transmit 2 ASP J977
Length 172"
Diameter 3"
Weight 35 lbs (w/ brackets)
GPS 1 Acutime II
Satellite Ant. 1
Channel Master 1.2 Meter
Measurement 5.8"D x 3.9"H
Weight 13.4oz
(w/o brackets)
Diameter 51"
Weight 50 lbs.
CABLE:
LINES QTY TYPE
Transmit 2 Heliax Coaxial
DIAMETER SIZE
(<225') 7/8" (>225') I 1/4"
Sat. &GPS 2 Coaxial
3/8"
EQUIPMENT QTY
CABINETS 2
DIMENSIONS
Height
Width
Depth
Weight
72'
24"
24"
350lbs (approx.)
AIR CONDITIONING: Adequate HVAC climate control must be made available for
proper equipment cooling.
POWER:
Dedicated 220 VAC
SUBSTITUTION:
Pagenet must have the right to substutute similar equipment and
antennas with no restrictions other than prior reasonable notice.
BR£H£RT'O~ ~L£CT.
OepL.
.PN£r
7-~e/s H I T~
177'
811.5' AMSL
601' AMSL
123~
purp~ee
O~_ _R_~g--G Aqtenna
9.1 I~.125 MHz
-- DECIBEL PROoucrs I)l~55a-G
O~80-Y ~nna
RA/E ?
TI~ t~#~ M I T
DECIBEL PROOUGI~
DB224-E Antenna
1 ~)2.240 MHz
DECIBEL. PROOUCTS
OB224-E Antenna
152.0.I0 MHz
ASP.T qT7
~la~ PROOU~ '~HZ ,
0~99-K ~enna
92~91~ MHz
DECIBEL PROOUCTS
01~230-E Antenna
72.720 MHz
561' AMSL
Rear (W~t) Tawer Leg
D~g..-G Antenna
AT&T Wireless Services
Me,llaglng Olvtilon
Western Wazhlngton
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m.m mm mm mm mm mm mmmmmm mm mm mm mmmm mmmmmm mm mm mm mm
AGENDA BILL
BREMERTON CITY COUNCIL
1. SUBJECT: ORDINANCE NO.
AUTHORIZING THE ISSUE OF 1997 UTGO REFUNDING BONDS.
AND ACCEPTING THE PURCHASE OFFER OF SEAFIRST BANK
FOR AGENDA OF: C,c~ ~__,., i.~S7
ORIGINATING DEPT: Treasurer
ORIGINATOR: R. Hanna
DATE SUBMI'I-I'ED: Oct. 6, 1997
2. CLEARANCES: Comment of back if necessary)
Dir. Admin. Services '~.J'-~'~,~'"~
City Attorney
Council Fiscal & Budget /~~~'
ENDORSEMENTS /~ INFORMATION
3. EXHIBITS:
Proposed Ordinance
Savings Analysis
Official Statement
APPROVED BY COUNCIL PRESIDENT FOR SUBMITTA
COUNCIL PRESIDENT
4. SUMMARY STATEMENT AND REQUIREMENT FOR COUNCIL ACTION:
The City currently has outstanding $1,430,000 from an orriginal issue of $1,850,000 voter-approved general obligation
bonds which were orriginally issued in 1991. Due to recent declines in interest rates, the City can achieve a savings of
approximately $65,000 or 4.5% of the outstanding bonds by refinancing this debt. The savings are calculated on a net
present value basis and will be realized over life of the bond issue which runs until 2006.
8. RECOMMENDATION:
MOTION TO APPROVE ON FIRST READING:
ORDINANCE NO.
MOTION TO PASS ON SECOND READING:
ORDINANCE NO.
__ AUTHORIZING THE ISSUE OF 1997 UTGO REFUNDING BONDS.
__ AUTHORIZING THE ISSUE OF 1997 UTGO REFUNDING BONDS.
9. RESPONSIBLE OFFICIAL: Treasurer
ENFORCEMENT OFFICIAL: Mayor
EXPIRATION DATE: Feb. 1,2006
REVIEW DATE: N/A
PULLED
COUNCIL DIRECTIVE;
TABLED
10. NOTICE OF ACTION
APPROVED
DISAPPROVED
11.
AMENDED
2. CLEARANCE COMMENTS:
5, IMPACT ON NON-PASSAGE:
The outstanding 1991 UTGO Bonds will remain outstanding and the savings will not be realized at this time.
6. IMPACT ON STAFFING. BUDGETS. FACILITIES. EQUIPMENT OR OTHER RESOURCES:
Small reduction in debt service requirements and the excess property tax levies in each of the next 10 years.
7. RESEARCH SOURCES:
Savings Analysis.
Bond Counsel.
Negotiations with underwriting bank.
City of Bremerton
REFUNDING ANAL YSIS
Refunding Scenario
Calculated As Of
Refunded Bonds
Refunding Bonds
Increase
Gross Savings
Net Present Value of Savings
Arbitrage Yield / Discount Rate
Average Coupon
Savings as % of Prior Bonds
1991A
UTGO
"A" Rated
25-Sep-97
51,290,000
1,360,000
70,000
72,499
60,404
4.52%
4.53%
4.6825%
1991A
UTGO
NR
1991A
UTGO
Loan
25-Sep-97
51,290,000
25-Sep-97
51,290,000
1,350,000
60,000
71,424
57,779
4.72%
4.73%
4.4790%
1,335,000
45,000
70,826
57,128
4.86%
4.95%
4.4285%
CITY OF BREMERTON (NON-RATED)
WASHINGTON
UTGO REFUNDING BONDS,1997(~.EFUND 1991A RFDG BONDS AFTER CALL)
New Bonds Debt Service Schedule
Date Principal Coupon Interest Period Total Fiscal Total
2/ 1/98 20,000.00 4.100000 26,058.33 46,058.33
8/ 1/98 30,860.00 30,860.00 76,918.33
2/ 1/99 160,000.00 4.300000 30,860.00 190,860.00
8/ 1/99 27,420.00 27,420.00 218,280.00
2/ 1/ 0 170,000.00 4.450000 27,420.00 197,420.00
8/ 1/ 0 23,637.50 23,637.50 221,057.50
2/ 1/ i 185,000.00 4.550000 23,637.50 208,637.50
8/ 1/ 1 19,428.75 19,428.75 228,066.25
2/ 1/ 2 185,000.00 4.650000 19,428.75 204,428.75
8/ 1/ 2 15,127.50 15,127.50 219,556.25
2/ 1/ 3 205,000.00 4.700000 15,127.50 220,127.50
8/ 1/ 3 10,310.00 10,310.00 230,437.50
2/ 1/ 4 135,000.00 4.800000 10,310.00 145,310.00
8/ 1/ 4 7,070.00 7,070.00 152,380.00
2/ 1/ 5 140,000.00 4.850000 7,070.00 147,070.00
8/ 1/ 5 3,675.00 3,675.00 150,745.00
2/ 1/ 6 150,000.00 4.900000 3,675.00 153,675.00
8/ 1/ 6 153,675.00
1,350,000.00 301,115.83 1,651,115.83
ACCRUED
1,350,000.00 301,115.83 1,651,115.83
Dated 9/ 1/97 with Delivery-of 9/ 1/97
Bond Years 6,372.500
Average Coupon 4.725239
Average Life 4.720370
N I C % 4.859762 % Using 99.3650000
T I C % 4.874608 % From Delivery Date
Arbitrage Yield 4.718964 %
Seafirst Bank-Municipal Finance
Micro-Muni ControlDate: 09-26-1997 ~ 09:07:23 Scenario: BR/WTNR
DRAFT DATED OCTOBER 9, 1997
CITY OF BREMERTON, WASHINGTON
ORDINANCE NO.
AN ORDINANCE of the City of Bremerton, Washington, relating to
contracting indebtedness; providing for the issuance of $ par value of
Unlimited Tax General Obligation Refunding Bonds, 1997, of the City to provide
the funds with which to pay the cost of advance refunding the callable portion of
City's outstanding Unlimited Tax General Obligation and Refunding Bonds, 1991,
and paying the administrative costs of such refunding and the costs of issuance
and sale of such bonds; specifying the maturities, interest rates, terms and
covenants of such bonds; establishing a bond redemption fund; providing for and
authorizing the purchase of certain obligations out of the proceeds of the sale of
the bonds herein authorized and for the use and application of the money derived
from those investments; authorizing the execution of an agreement with ~
of , , as refunding trustee; providing for the
call, payment and redemption of the outstanding bonds to be refunded; and
approving the sale and providing for the delivery of the bonds to Bank of
America NT&SA, doing business as Seafirst Bank, of Seattle, Washington.
Approved: , 1997
Passed: , 1997
Prepared By:
FOSTER PEPPER & SHEFELMAN PLLC
1111 Third Avenue, Suite 3400
Seattle, Washington 98101
(206) 447-4400
0306067.01
CITY OF BREMERTON, WASHINGTON
ORDINANCE NO.
AN ORDINANCE of the City of Bremerton, Washington, relating to
contracting indebtedness; providing for the issuance of $ par value of
Unlimited Tax General Obligation Refunding Bonds, 1997, of the City to provide
the funds with which to pay the cost of advance refunding the callable portion of
City's outstanding Unlimited Tax General Obligation and Refunding Bonds, 1991,
and paying the administrative costs of such refunding and the costs of issuance
and sale of such bonds; specifying the maturities, interest rates, terms and
covenants of such bonds; establishing a bond redemption fund; providing for and
authorizing the purchase of certain obligations out of the proceeds of the sale of
the bonds herein authorized and for the use and application of the money derived
from those investments; authorizing the execution of an agreement with __
of .... as refunding trustee; providing for the
call, payment and redemption of the outstanding bonds to be refunded; and
approving the sale and providing for the delivery of the bonds to Bank of
America NT&SA, doing business as Seafirst Bank, of Seattle, Washington.
WHEREAS, pursuant to Ordinance No. 4321, the City of Bremerton, Washington (the
"City"), heretofore issued its $1,850,000 par value Unlimited Tax General Obligation and
Refunding Bonds, 1991 (the "1991 Bonds"), for the purpose of providing funds necessary to (1)
pay the cost of capital purposes as authorized by the qualified voters of the City at a special
election held on November 6, 1990, pursuant to Ordinance No. 4286, and (2) pay the cost of
advance refunding the City's outstanding Unlimited Tax General Obligation Bonds, 1983, which
were authorized by the qualified electors of the City at a special election held on September 16,
1980, pursuant to Ordinance No. 3595; and
WHEREAS, by Ordinance No. 4321 the City reserved the right to redeem the 1991
Bonds prior to their maturity on February 1, 1999, at a price of par plus accrued interest to the
date fixed for redemption; and
030606'/.01
WHEREAS, there are presently outstanding $1,145,000 par value of 1991 Bonds
maturing on February 1 of each of the years 2000 through 2006, inclusive, and bearing various
interest rates from 6.35 % to 6.95% (the "Refunded Bonds"); and
WHEREAS, after due consideration, it appears to the City Council that the Refunded
Bonds may be refunded by the issuance and sale of the unlimited tax general obligation
refunding bonds authorized herein (the "Bonds") so that a substantial savings will be effected
by the difference between the principal and interest cost over the life of the Bonds and the
principal and interest cost over the life of the Refunded Bonds but for such refunding, which
refunding will be effected by:
(a)The issuance of the Bonds and the payment of the costs of the issuance of
the Bonds and the costs of the refunding;
(b) The payment of the interest on the Refunded Bonds when due up to and
including February 1, 1999, and the call, payment and redemption on
February 1, 1999, of all of the Refunded Bonds at a price of par;
and
WHEREAS, to effect that refunding in the manner that will be most advantageous to the
City and its taxpayers it is found necessary and advisable that certain Acquired Obligations
(hereinafter defined) bearing interest and maturing at such time or times as necessary to
accomplish the refunding as aforesaid be purchased out of a portion of the proceeds of the
Bonds; and
WHEREAS, the City Council deems it to be in the best interests of the City to issue and
sell the Bonds to pay the cost of advance refunding the Refunded Bonds and to pay the
administrative costs of such refunding and the costs of issuance and sale of the Bonds; and
0306067.01
-2-
WHEREAS, Bank of America NT&SA, doing business as Seafirst Bank, of Seattle,
Washington, has offered to purchase the Bonds under the terms and conditions hereinafter set
forth in the form of a bond purchase contract; NOW, THEREFORE,
THE CITY OF BREMERTON DOES ORDAIN as follows:
Section 1. Definitions. As used in this ordinance, the following words shall have the
following meanings:
"Acquired Obligations" means those United States Treasury Certificates of Indebtedness,
Notes and Bonds--State and Local Government Series and other direct, noncallable obligations
of the United States of America purchased to accomplish the refunding of the Refunded Bonds
as authorized by this ordinance.
"Bonds" means the $ par value of Unlimited Tax General Obligation Refunding
Bonds, 1997, authorized to be issued by this ordinance.
"Bond Register" means the registration books of the Bond Registrar on which are
recorded the names of the owners of' the Bonds.
"Bond Registrar" means the fiscal agencies of the State of Washington as the same may
be designated from time to time.
"City" means the City of Bremerton, Washington, a duly organized first class city of the
State of Washington.
"Code" means the Internal Revenue Code of 1986, as amended.
"Refunded Bonds" means the outstanding Unlimited Tax General Obligation and
Refunding Bonds, 1991, of the City maturing in the years 2000 through 2006, inclusive, issued
pursuant to Ordinance No. 4321, the refunding of which has been provided for by this
ordinance.
0306067.01
-3-
"Refunding Plan" means:
(a) the placement of sufficient proceeds of the Bonds which, with other
money of the City, if necessary, will acquire the Acquired Obligations to be
deposited, with cash, if necessary, with the Refunding Trustee;
(b) the payment of the interest on the Refunded Bonds when due up to
and including February 1, 1999, and the call, payment and redemption on
February 1, 1999, of all of the Refunded Bonds at a price of par; and
(c) the payment of the costs of issuing the Bonds and the costs of
carrying out the foregoing elements of the Refunding Plan.
"Refunding Trust Agreement" means a Refunding Trust Agreement between the City and
the Refunding Trustee substantially in the form of that which is on file with the City Clerk and
by this reference incorporated herein.
"Refunding Trustee" means of
escrow agent or any successor trustee or escrow agent.
Section 2. Authorization and Description of Bonds.
, serving as trustee or
The City shall issue and sell
par value of negotiable general obligation refunding bonds for the purpose of
providing the money required to carry out the Refunding Plan. The Bonds shall be called
Unlimited Tax General Obligation Refunding Bonds, 1997, of the City; shall be in the aggregate
principal amount of $. ; shall be dated November 1, 1997; shall be in the denomination
of $5,000 or any integral multiple thereof within a single maturity; shall be numbered separately
in the manner and with any additional designation as the Bond Registrar deems necessary for
purposes of identification; shall bear interest (computed on the basis of a 360-day year of twelve
30-day months) payable semiannually on each February 1 and August 1, commencing
February 1, 1998, to the maturity of the Bonds; and shall mature on February 1 in years and
amounts and bear interest at the rates per annum as follows:
0306067.01
-4-
Maturity Interest
Years Amounts Rates
1998
1999
2000
2001
2002
2003
2004
2O05
2006
All of the principal amount of Bonds maturing in the years through and $ of the
principal amount of Bonds maturing in the year shall constitute non-voted debt of the City.
Section 3. Registration and Transfer of Bonds. The Bonds shall be issued only in
registered form as to both principal and interest and shall be recorded on the Bond Register.
The Bond Register shall contain the name and mailing address of the owner of each Bond and
the principal amount and number of each of the Bonds held by each owner.
Bonds surrendered to the Bond Registrar may be exchanged for Bonds in any authorized
denomination of an equal aggregate principal amount and of the same interest rate and maturity.
Bonds may be transferred only if endorsed in the manner provided thereon and surrendered to
the Bond Registrar. Any exchange or transfer shall be without cost to the owner or transferee.
The Bond Registrar shall not be obligated to exchange or transfer any Bond during the 15 days
preceding any principal payment or redemption date.
Section 4.. Payment of Bonds. Both principal of and interest on the Bonds shall be
payable in lawful money of the United States of America. Interest on the Bonds shall be paid
by checks or drafts of the Bond Registrar mailed on the interest payment date to the registered
owners at the addresses appearing on the Bond Register on the 15th day of the month preceding
Principal of the Bonds shall be payable upon presentation and
the interest payment date.
0306067.01
-5-
surrender of the Bonds by the registered owners at either of the principal offices of the Bond
Registrar at the option of the owners.
Section 5. Optional Redemption and Open Market Purchase of Bonds. The Bonds shall
be issued without the right or option of the City to redeem the Bonds prior to their stated
maturity dates.
The City reserves the right and option to purchase any or all of the Bonds in the open
market at any time at any price plus accrued interest to the date of purchase.
All Bonds purchased under this section shall be cancelled.
Section 6. Failure to Redeem Bonds. If any Bond is not redeemed when properly
presented at its maturity date, the City shall be obligated to pay interest on that Bond at the same
rate provided in the Bond from and after its maturity until that Bond, both principal and interest,
is paid in full or until sufficient money for its payment in full is on deposit in the bond
redemption fund hereinafter created and the Bond has been called for payment by giving notice
of that call to the registered owner thereof.
Section 7. Pledge of Taxes. For as long as any of the Bonds are outstanding, the City
irrevocably pledges to levy taxes annually without limitation as to rate or amount on all of the
taxable property 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 Bonds,
and the full faith, credit and resources of the City are pledged irrevocably for the annual levy
and collection of those taxes and the prompt payment of that principal and interest.
Section 8. Form and Execution of Bonds. The Bonds shall be printed or lithographed
on good bond paper in a form consistent with the provisions of this ordinance and state law,
shall be signed by the Mayor and City Clerk, either or both of whose signatures may be manual
0306067.01
-6-
or in facsimile, and the seal of the City or a facsimile reproduction thereof shall be impressed
or printed thereon.
Only Bonds bearing a Certificate of Authentication in the following form, manually
signed by the Bond Registrar, shall be valid or obligatory for any purpose or entitled to the
benefits of this ordinance:
CERTIFICATE OF AUTHENTICATION
This Bond is one of the fully registered City of Bremerton, Washington,
Unlimited Tax General Obligation Refunding Bonds, 1997, described in the Bond
Ordinance.
WASHINGTON STATE FISCAL AGENCY
Bond Registrar
By
Authorized Signer
The authorized signing of a Certificate of Authentication shall be conclusive evidence that the
Bond so authenticated has been duly executed, authenticated and delivered and is entitled to the
benefits of this ordinance.
If any officer whose facsimile signature appears on the Bonds ceases to be an officer of
the City authorized to sign bonds before the Bonds bearing his or her facsimile signature are
authenticated or delivered by the Bond Registrar or issued by the City, those Bonds nevertheless
may be authenticated, issued and delivered and, when authenticated, issued and delivered, shall
be as binding on the City as though that person had continued to be an officer of the City
authorized to sign bonds. Any Bond also may be signed on behalf of the City by any person
who, on the actual date of signing of the Bond, 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 the Bonds.
0306067.01
-7-
Section 9. Bond Registrar. The Bond Registrar shall keep, or cause to be kept, at its
principal corporate trust office, sufficient books for the registration and transfer of the Bonds,
which shall be open to inspection by the City at all times. The Bond Registrar is authorized,
on behalf of the City, to authenticate and deliver Bonds transferred or exchanged in accordance
with the provisions of the Bonds and this ordinance, to serve as the City's paying agent for the
Bonds and to carry out all of the Bond 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.
The Bond Registrar shall be responsible for its representations contained in the Bond
Registrar's Certificate of Authentication on the Bonds. The Bond Registrar may become the
owner of Bonds with the same rights it would have if it were not the Bond Registrar and, to the
extent 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 Bond owners.
Section 10. Preservation of Tax Exemption for Interest on Bonds. The City covenants
that it will take all actions necessary to prevent interest on the Bonds from being included in
gross income for federal income tax purposes, and it will neither take any action nor make or
permit any use of proceeds of the Bonds or other funds of the City treated as proceeds of the
Bonds at any time during the term of the Bonds which will cause interest on the Bonds to be
included in gross income for federal income tax purposes. The City 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.
0306067.01
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Section 11. Small Governmental Issuer Arbitrage Rebate Exception and Designation of
Bonds as "Qualified Tax-Exempt Obligations." The City finds and declares that (a) it is a duly
organized and existing governmental unit of the State of Washington and has general taxing
power; (b) no Bond which is part of this issue of Bonds is a "private activity bond" within the
meaning of Section 141 of the United States Internal Revenue Code of 1986, as amended (the
"Code"); (c) at least 95 % of the net proceeds of the Bonds will be used for local governmental
activities of 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 City (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 behalf of the City) during the calendar year in which the Bonds
are issued is not reasonably expected to exceed $5,000,000; and (e) the amount of tax-exempt
obligations, including the Bonds, 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 Bonds
are issued does not exceed $10,000,000. The City therefore certifies that the Bonds are eligible
for the arbitrage rebate exception under Section 148(f)(4)(D) of the Code and designates the
Bonds as "qualified tax-exempt obligations" for the purposes of Section 265(b)(3) of the Code.
Section 12.. Bonds Negotiable. The Bonds shall be negotiable instruments to the extent
provided by RCW 62A.8-102 and 62A.8-105.
Section 13. Refunding or Defeasance of the Bonds. The City may issue refunding bonds
pursuant to the laws of the State of Washington or use money available from any other lawful
source to pay when due the principal of and interest on the Bonds, or any portion thereof
0306067.01
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included in a refunding or defeasance plan, and to redeem and retire, refund or defease all such
then-outstanding Bonds (hereinafter collectively called the "defeased Bonds") and to pay the costs
of the refunding or defeasance. If money and/or direct obligations of the United States of
America maturing at a time or times and bearing interest in amounts (together with money, if
necessary) sufficient to redeem and retire, refund or defease the defeased Bonds in accordance
with their terms are set aside in a special trust fund or escrow account irrevocably pledged to
that redemption, retirement or defeasance of defeased Bonds (hereinafter called the "trust
account"), then all right and interest of the owners of the defeased Bonds in the covenants of this
ordinance and in the funds and accounts obligated to the payment of the defeased Bonds shall
cease and become void. The owners of defeased Bonds shall have the right to receive payment
of the principal of and interest on the defeased Bonds from the trust account. The City shall
include in the refunding or defeasance plan such provisions as the City deems necessary for the
random selection of any defeased Bonds that constitute less than all of a particular maturity of
the Bonds, for notice of the defeasance to be given to the owners of the defeased Bonds and to
such other persons as the City shall determine, and for any required replacement of Bond
certificates for defeased Bonds. The defeased Bonds shall be deemed no longer outstanding, and
the City may apply any money in any other fund or account established for the payment or
redemption of the defeased Bonds to any lawful purposes as it shall determine.
Section 14. Bond Fund and Deposit of Bond Proceeds There is created and established
in the office of the City Treasurer a special fund designated as the Unlimited Tax General
Obligation Refunding Bond Fund, 1997 (the "Bond Fund"). Accrued interest on the Bonds, if
any, received from the sale and delivery of the Bonds shall be paid into the Bond Fund. The
proceeds of the Bonds shall be deposited in accordance with the provisions of Section 15 herein.
0306067.01
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All taxes collected for and allocated to the payment of the principal of and interest on the Bonds
shall be deposited in the Bond Fund.
Section 15. Refunding of the Refunded Bonds.
(a) Appointment of Refunding Trustee. of , ,
is appointed Refunding Trustee.
Co) Use of Bond Proceeds; Acquisition of Acquired Obligations. All of the proceeds
of the sale of the Bonds, exclusive of the accrued interest thereon which shall be paid into the
Bond Fund, shall be deposited immediately upon the receipt thereof with the Refunding Trustee
and used to discharge the obligations of the City relating to the Refunded Bonds under Ordinance
No. 4321 by providing for the payment of the mounts required to be paid by the Refunding
Plan. To the extent practicable, such obligations shall be discharged fully by the Refunding
Trustee's simultaneous purchase of the Acquired Obligations, bearing such interest and maturing
as to principal and interest in such amounts and at such times so as to provide, together with a
beginning cash balance, if necessary, for the payment of the amount required to be paid by the
Refunding Plan. The Acquired Obligations are listed and more particularly described in
Schedule A attached to the Refunding Trust Agreement between the City and the Refunding
Trustee, but are subject to substitution as set forth below. Any Bond proceeds or other money
deposited with the Refunding Trustee not needed to purchase the Acquired Obligations and
provide a beginning cash balance, if any, and pay the costs of issuance of the Bonds shall be
returned to the City at the time of delivery of the Bonds to the initial purchaser thereof and
deposited in the Bond Fund to pay interest on the Bonds on the first interest payment date.
(c) Substitution of Acquired Obligations. Prior to the purchase of any Acquired
Obligations, the City reserves the right to substitute other direct, noncallable obligations of the
030~06'7.01
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'77
United States of America ("Government Obligations") for any of the Acquired Obligations and
to use any savings created thereby for any lawful City purpose if, (a) in the opinion of Foster
Pepper & Shefelman PLLC, the City's bond counsel, the interest on the Bonds and the Refunded
Bonds will remain excluded from gross income for federal income tax purposes under
Sections 103, 148 and 149(d) of the Code, and (b) such substitution shall not impair the timely
payment of the amounts required to be paid by the Refunding Plan, as verified by a nationally
recognized independent certified public accounting firm.
After the purchase of the Acquired Obligations by the Refunding Trustee, the City
reserves the right to substitute therefor cash or Government Obligations subject to the conditions
that such money or securities held by the Refunding TrUstee shall be sufficient to carry out the
Refunding Plan, that such substitution will not cause the Bonds and the Refunded Bonds to be
arbitrage bonds within the meaning of Section 148 of the Code and regulations thereunder in
effect on the date of such substitution and applicable to obligations issued on the issue date of
the Bonds, and that the City obtain, at its expense: (1) a verification by a nationally recognized
independent certified public accounting firm acceptable to the Refunding Trustee confirming that
the payments of principal of and interest on the substitute securities, if paid when due, and any
other money held by the Refunding Trustee will be sufficient to carry out the Refunding Plan;
and (2)an opinion from Foster Pepper & Shefelman PLLC, bond counsel to the City, its
successor, or other nationally recognized bond counsel to the City, to the effect that the
disposition and substitution or purchase of such securities, under the statutes, rules and
regulations then in force and applicable to the Bonds, will not cause the interest on the Bonds
or the Refunded Bonds to be included in gross income for federal income tax purposes and that
such disposition and substitution or purchase is in compliance with the statutes and regulations
0305057.01
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applicable to the Bonds. Any surplus money resulting from the sale, transfer, other disposition
or redemption of the Acquired Obligations and the substitutions therefor shall be released from
the trust estate and transferred to the City to be used for any lawful City purpose.
(d) Administration of Refunding Plan. The Refunding Trustee is authorized and
directed to purchase the Acquired Obligations (or substitute obligations) and to make the
payments required to be made by the Refunding Plan from the Acquired Obligations (or
substitute obligations) and money deposited with the Refunding Trustee pursuant to this
ordinance. All Acquired Obligations (or substitute obligations) and the money deposited with
the Refunding Trustee and any income therefrom shall be held irrevocably, invested and applied
in accordance with the provisions of Ordinance No. 4321, this ordinance, chapter 39.53 RCW
and other applicable statutes of the State of Washington and the Refunding Trust Agreement.
All necessary and proper fees, compensation and expenses of the Refunding Trustee for the
Bonds and all other costs incidental to the setting up of the escrow to accomplish the refunding
of the Refunded Bonds and costs related to the issuance and delivery of the Bonds, including
bond printing, verification fees, bond counsel's fees and other related expenses, shall be paid
out of the proceeds of the Bonds.
(e) Authorization for Refunding Trust Agreement. To carry out the Refunding Plan
provided for by this ordinance, the Mayor of the City is authorized and directed to execute and
deliver to the Refunding Trustee a Refunding Trust Agreement substantially in the form on file
with the City Clerk and by this reference made a part hereof setting forth the duties, obligations
and responsibilities of the Refunding Trustee in connection with the payment, redemption and
retirement of the Refunded Bonds as provided herein and stating that the provisions for payment
of the fees, compensation and expenses of such Refunding Trustee set forth therein are
0306067.01
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satisfactory to it. Prior to executing the Refunding Trust Agreement, the Mayor of the City is
authorized to make such changes therein which do not change the substance and purpose thereof
or which assure that the escrow provided therein and the Bonds are in compliance with the
requirements of federal law governing the exclusion of interest on the Bonds from gross income
for federal income tax purposes.
Section 16. Call for Redemption of the Refunded Bonds. The City calls for redemption
on February 1, 1999, all of the Refunded Bonds at par plus accrued interest. Such call for
redemption shall be irrevocable after the delivery of the Bonds to the initial purchaser thereof.
The date on which the Refunded Bonds are herein called for redemption is the first date on
which the those bonds may be called.
The proper City officials are authorized and directed to give or cause to be given such
notices as required, at the times and in the manner required, pursuant to Ordinance No. 1~
in order to effect the redemption prior to their maturity of the Refunded Bonds.
Section 17. City. Findings with Respect to Refunding. The City Council finds and
determines that the issuance and sale of the Bonds at this time will effect a savings to the City
and is in the best interest of the City and its taxpayers and in the public interest. In making such
finding and determination, the City Council has given consideration to the fixed maturities of
the Bonds and the Refunded Bonds, the costs of issuance of the Bonds and the known earned
income from the investment of the proceeds of the issuance and sale of the Bonds pending
payment and redemption of the Refunded Bonds.
The City Council further finds and determines that the money to be deposited with the
Refunding Trustee for the Refunded Bonds in accordance with Section 15 of this ordinance will
discharge and satisfy the obligations of the City under Ordinance No. ith respect to the
0306067.01
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Refunded Bonds, and the pledges, charges, trusts, covenants and agreements of the City therein
made or provided for as to the Refunded Bonds, and that the Refunded Bonds shall no longer
be deemed to be outstanding under such ordinance immediately upon the deposit of such money
with the Refunding Trustee.
Section 18. Approval of Bond Purchase Contract. Bank of America NT&SA, doing
business as Seafirst Bank, of Seattle, Washington, has presented a purchase contract (the "Bond
Purchase Contract") to the City offering to purchase the Bonds under the terms and conditions
provided in the Bond Purchase Contract, which written Bond Purchase Contract is on file with
the City Clerk and is incorporated herein by this reference. The City Council finds that entering
into the Bond Purchase Contract is in the City's best interest and therefore accepts the offer
contained therein and authorizes its execution by City officials.
The Bonds will be printed at City expense and will be delivered to the purchaser in
accordance with the Bond Purchase Contract, with the approving legal opinion of Foster
Pepper & Shefelman PLLC, municipal bond counsel of Seattle, Washington, regarding the
Bonds printed on each Bond. Bond counsel shall not be required to review and shall express
no opinion concerning the completeness or accuracy of any official statement, offering circular
or other sales or disclosure material issued or used in connection with the Bonds, and bond
counsel's opinion shall so state.
The proper City officials are authorized and directed to do everything necessary for the
prompt delivery of the Bonds to the purchaser and for the proper application and use of the
proceeds of the sale thereof.
Section 19. Preliminary Official Statement Deemed Final. The City Council has been
provided with copies of a preliminary official statement dated October ~, 1997 (the
0306067.01
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"Preliminary Official Statement"), prepared in connection with the sale of the Bonds. For the
sole purpose of the Bond purchaser's compliance with Securities and Exchange Commission
("SEC") Rule 15c2-12(b)(1), the City "deems final" that Preliminary Official Statement as of
its date, except for the omission of information as to offering prices, interest rates, selling
compensation, aggregate principal amount, principal amount per maturity, maturity dates,
options of redemption, delivery dates, ratings and other terms of the Bonds dependent on such
matters.
Section 20. Undertaking to Provide Continuing Disclosure. To meet the requirements
of SEC Rule 15c2-12(b)(5) (the "Rule"), as applicable to a participating underwriter for the
Bonds, the City makes the following written undertaking (the "Undertaking") for the benefit of
holders of the Bonds:
(a) Undertaking to Provide Annual Financial Information and Notice
of Material Events. The City undertakes to provide or cause to be provided,
either directly or through a designated agent:
(i) To each nationally recognized municipal securities
information repository designated by the SEC in accordance with the Rule
CNRMSIR") and to a state information depository, if any, established in
the State of Washington (the "SID") annual financial information and
operating data of the type included in the final official statement for the
Bonds and described in Section 20(b) ("annual financial information");
(ii) To each NRMSIR or the Municipal Securities Rulemaking
Board CMSRB"), and to the SID, timely notice of the occurrence of any
of the following events with respect to the Bonds, if material: (1) principal
and interest payment delinquencies; (2) non-payment related defaults; (3)
unscheduled draws on debt service reserves reflecting financial difficulties;
(4) unscheduled draws on credit enhancements reflecting financial
difficulties; (5) substitution of credit or liquidity providers, or their failure
to perform; (6) adverse tax opinions or events affecting the tax-exempt
status of the Bonds; (7) modifications to rights of holders of the Bonds;
(8) Bond calls (other than scheduled mandatory redemptions of Term
Bonds); (9) defeasances; (10) release, substitution, or sale of property
securing repayment of the Bonds; and (11) rating changes; and
030606'7.01
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(iii) To each NRMSIR or to the MSRB, and to the SID, timely
notice of a failure by the City to provide required annual financial
information on or before the date specified in Section 20(b).
(b) Type of Annual Financial Information Undertaken to be Provided.
The annual financial information that the City undertakes to provide in Section
20(a):
(i) Shall consist of
(ii) Shall be prepared (except as noted in the financial statements)
in accordance with applicable generally accepted accounting principles
promulgated by the Government Accounting Standards Board ("GASB"),
as such principles may be changed from time to time by GASB or its
successor;
(iii) Shall not be audited, except, however, that if and when
audited fmancial statements are otherwise prepared and available to the
City they will be provided;
(iv) Shall be provided to each NRMSIR and the SID, not later
than the last day of the ninth month after the end of each fiscal year of the
City (currently, a fiscal year ending December 31), as such fiscal year
may be changed as required or permitted by State law, commencing with
the City's fiscal year ending December 31, 19918]; and
(v) May be provided in a single or multiple documents, and
may be incorporated by reference to other documents that have been filed
with each NRMSIR and the SID, or, if the document incorporated by
reference is a "final official statement" with respect to other obligations
of the City, that has been filed with the MSRB.
(c) Amendment of Undertaking. The Undertaking is subject to
amendment after the primary offering of the Bonds without the consent of any
holder of any Bond, 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 to each NRMSIR or the MSRB, and the SID, of
the substance (or provide a copy) of any amendment to the Undertaking and a
brief statement of the reasons for the amendment. If the amendment changes the
type of aimual financial information to be provided, the annual financial
information containing the amended financial information will include a narrative
explanation of the effect of that change on the type of information to be provided.
030606'7.01
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(d) Beneficiaries. The Undertaking evidenced by this Section 20 shall
inure to the benefit of the City and any holder of Bonds, and shall not inure to
the benefit of or create any rights in any other person.
(e) Termination of Undertaking. The City's obligations under this
Undertaking shall terminate upon the legal defeasance of all of the Bonds. In
addition, the City's obligations under this Undertaking shall terminate if those
provisions of the Rule which require the City to comply with this Undertaking
become legally inapplicable in respect of the Bonds 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 termination to each NRMSIR or the MSRB and the SID.
(f) Remedy for Failure to Comply 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 Bonds. The sole remedy
of any holder of a Bond shall be to take such actions as 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.
(g) Designation of Official Responsible to Administer Undertaking.
The City Treasurer (or such other officer of the City who may in the future
perform the duties of the City Treasurer) or his or her designee is authorized and
directed in his or her discretion to take such further actions as may be necessary,
appropriate or convenient to carry out the Undertaking of the City in respect of
the Bonds set forth in this Section 20 and in accordance with the Rule, including,
without limitation, the following actions:
(i) Preparing and filing the annual financial information
undertaken to be provided;
(ii) Determining whether any event specified in Section 20(a) has
occurred, assessing its materiality with respect to the Bonds, and, if
material, preparing and disseminating notice of its occurrence;
(iii) Determining whether any person other than the City is an
"obligated person" within the meaning of the Rule with respect to the
Bonds, and obtaining from such person an undertaking to provide any
annual financial information and notice of material events for that person
in accordance with the Rule;
0~05067.01
7z/
(iv) Selecting, engaging and compensating designated agents and
consultants, including but not limited to financial advisors and legal
counsel, to assist and advise the City in carrying out the Undertaking; and
(v) Effecting any necessary amendment of the Undertaking.
Section 21. Temporary Bond. Pending the printing, execution and delivery to the
purchaser of definitive Bonds, the City may cause to be executed and delivered to the purchaser
a single temporary Bond in the total principal amount of the Bonds. The temporary Bond shall
bear the same date of issuance, interest rates, principal payment dates and terms and covenants
as the definitive Bonds, shall be issued as a fully registered Bond in the name of the purchaser,
and otherwise shall be in a form acceptable to the purchaser. The temporary Bond shall be
exchanged for definitive Bonds as soon as they are printed, executed and available for delivery.
0305057.01
Section 22. Effective Date of Ordinance.
after its passage and publication.
APPROVED by the City Council of the City of Bremerton, Washington, this
October, 1997.
PASSED by the City Council of the City of Bremerton, Washington, this
October, 1997.
This ordinance shall take effect ten (10) days
day of
day of
APPROVED this
day of
DAVID FARR, Council President
,1997.
ATTEST:
LYNN HORTON, Mayor
KATHLEEN L. McCLUSKEY, City Clerk
APPROVED AS TO FORM:
George M. Mack, Bond Counsel
Publication Date:
Ordinance Number:
0306067.01
I, KATHLEEN L. McCLUSKEY, City Clerk of the City of Bremerton, Washington,
certify that the attached copy of Ordinance No. is a true and correct copy of the original
ordinance passed on the ~
Book of the City.
DATED this ~ day of
day of October, 1997, as that ordinance appears on the Minute
,1997.
Kathleen L. McCluskey
City Clerk
0306067.01
[FORM OF APPROVING LEGAL OPINION]
City of Bremerton, Washington
Re:
City of Bremerton, Washington, $
Obligation Refunding Bonds, 1997
Unlimited Tax General
We have served as bond counsel to the City of Bremerton, Washington (the "City"),
in connection with the issuance of the above-referenced bonds (the "Bonds"), have examined
a certified transcript of proceedings relating to the Bonds and have examined an executed and
authenticated Bond or a facsimile thereof.
The Bonds are issued pursuant to Ordinance No. ~ of the City (the "Bond
Ordinance") for the purpose of providing the funds with which to pay the cost of advance
refunding the callable portion of the City's outstanding Unlimited Tax General Obligation and
Refunding Bonds, 1991, and to pay the administrative costs of such refunding and the costs
of issuance of the Bonds, all as set forth in the Bond Ordinance, and under and in accordance
with the Constitution and laws of the State of Washington and ordinances of the City.
The Bonds are fully registered; are in the denomination of $5,000 or any integral
multiple thereof within a single maturity; are numbered separately; are dated November 1,
1997; and bear interest at the rates set forth below, payable semiannually on each February 1
and August 1, commencing February 1, 1998, to the maturity of the Bonds. The Bonds are
payable at the principal office of either of the fiscal agencies of the State of Washington
(collectively, the "Bond Registrar"). The Bonds mature on February 1 in years and amounts
and bear interest at the rates per annum as follows:
Maturity Interest
Dates Amounts. Rates
1998
1999
2000
2001
2002
2003
2004
2005
2006
0307099.01
City of Bremerton, Washington
[Date]
Page 2
The Bonds are issued without the right or option of the City to redeem the Bonds
prior to their stated maturity dates.
We have not been engaged to review, have not reviewed and thus express no opinion
concerning the completeness or accuracy of any official statement, offering circular or other
sales or disclosure material relating to the issuance of the Bonds or otherwise used in
connection with the Bonds.
Under the Internal Revenue Code of 1986, as amended (the "Code"), issuers of
tax-exempt obligations are required to calculate and rebate to the United States certain
investment earnings on gross proceeds of those obligations in the event that all gross
proceeds have not been spent within certain periods prescribed by the Code. There is an
exception to this rebate requirement available to a governmental unit with general taxing
powers in connection with the issuance of obligations other than "private activity bonds" as
defined in the Code, if the governmental unit, together with all subordinate governmental
units, does not reasonably anticipate issuing more than $5,000,000 of tax-exempt obligations
(other than private activity bonds and other obligations not required to be included in such
calculation) during the calendar year in which the obligations are issued. The City has
certified in the Bond Ordinance that it is an issuer which qualifies for this arbitrage rebate
exception in connection with the issuance of the Bonds.
Under the Code, the City is required to comply with certain requirements after the
date of issuance of the Bonds in order to maintain the exclusion of the interest on the Bonds
from gross income for federal income tax purposes, including, without limitation,
requirements concerning the qualified use of Bond proceeds and the facilities financed or
refinanced with Bond proceeds. The City has covenanted in the Bond Ordinance to comply
with those requirements, but if the City fails to comply with those requirements, interest on
the Bonds could become taxable retroactive to the date of issuance of the Bonds. We have
not undertaken and do not undertake to monitor the City's compliance with such
requirements.
As of the date of initial delivery of the Bonds to the purchaser thereof and full
payment therefor, it is our opinion that:
1. The City is a duly organized and legally existing first class city under the laws
of the State of Washington;
2. The Bonds are issued in full compliance with the provisions of the
Constitution and laws of the State of Washington and the ordinances of the City relating
thereto;
3. The Bonds constitute valid general obligations of the City payable from annual
ad valorem taxes to be levied without limitation as to rate or amount on all of the taxable
0307099.01
City of Bremerton, Washington
[Date]
Page 3
property within the City, except only to the extent that enforcement of payment may be
limited by bankruptcy, insolvency or other laws affecting creditors' rights and by the
application of equitable principles and the exercise of judicial discretion in appropriate cases;
and
4. Assuming compliance by the City after the date of issuance of the Bonds with
applicable requirements of the Code, including arbitrage requirements, under existing federal
law the interest on the Bonds is excluded from gross income of the registered owners for
federal income tax purposes and is not an item of tax preference for purposes of the
alternative minimum tax applicable to individuals; however, while interest on the Bonds also
is not an 'item of tax preference for purposes of the alternative minimum tax applicable to
corporations, interest on the Bonds received by corporations is to be taken into account in
the computation of adjusted current earnings for purposes of the alternative minimum tax
applicable to corporations, interest on the Bonds received by certain S corporations may be
subject to tax, and interest on the Bonds received by foreign corporations with United States
branches may be subject to a foreign branch profits tax. We express no opinion regarding
any other federal tax consequences of receipt of interest on the Bonds.
We bring to your attention the fact that the foregoing opinions are expressions of our
professional judgment on the matters expressly addressed and do not constitute guarantees
of result.
Respectfully submitted,
FOSTER PEPPER & SHEFELMAN PLLC
0307099.01
Draft Dated 10-27-97
PRELIMINARY OFFICIAL STATEMENT DATED OCTOBER __, 1997
BOOK-ENTRY ONLY
NEW ISSUE RATING: Applied For
NEGOTIATED (See the caption "RATING" herein)
In the opinion of Bond Counsel, assuming compliance by the City of Bremerton, Washington (the "City") with applicaDle requirements of the Internal Revenue Code
of 1986, as amended (the 'Code"), including arbitrage requirements, interest on the Bonds is excluded from gross income of registered owners for federal income
tax purposes under existing federal law, and is not an item of tax preference for purposes of the alternative minimum tax applicable to ir~ividuals. However. while
interest on the Bonds also is not an item of tax preference for purposes of the alternative minimum tax applicable to corporations, interest on the Bonds received by
corporations is taken into account in the computation of adjusted current earnings for purposes of the alternative minimum tax applicaDle to corporations, interest on
the Bonds received by certain S corporations may be subject to tax, and interest on the Bonds received by foreign corporations ~th United States branches may De
subject to a foreign branch profits tax. Receipt of interest on the Bonds may have other federal tax consequences for certain taxpayers. See the captions 'TAX
EXEMPTION' and 'CERTAIN OTHER FEDERAL TAX CONSEQUENCES.'
CITY OF BREMERTON,$1,215,000.WASHINGTON
UNLIMITED TAX GENERAL OBLIGATION REFUNDING BONDS, 1997
DATED: November 1, 1997
DUE: February 1, as shown below
The City's Unlimited Tax General Obligation Refunding Bonds, 1997 (the "Bonds"), are issued in fully registered form, and will be fully
registered in the name of Cede & Co., as bond owner and nominee for The Depository Trust Company ("DTC"), New York, New York. DTC will
act as securities depository for the Bonds. The Bonds will be initially issued in book-entry form only in the value of $5,000 or any integral
multiple thereof within a single maturity. Purchasers will not receive certificates representing their interest in the Bonds purchased. The Bonds
bear interest payable on February 1, 1998 and semiannually thereafter on August I and February I of each year to maturity. The principal of
and interest on the Bonds are payable by either fiscal agency of the State of Washington, currently The Bank of New York, New York, New
York and Wells Fargo Bank, National Association, Seattle, Washington (the "Fiscal Agent~). For so long as the Bonds remain in a Ubook-entry
only" transfer system, the Fiscal Agent will make such payments only to DTC, which will in turn remit such principal and interest to the DTC
participants for subsequent disbursement to Beneficial Owners of the Bonds as described herein under the caption *Book-Entry Only System."
MATURITY SCHEDULE*
Due Yield or Due
February 1 Amount Rate pri(;e February I Amount
1998 $ 30,000 2003 $ 205,000
1999 15,000 2004 135,000
2000 170,000 2005 140,000
2001 185,000 2006 150,000
2002 185,000
(Plus accrued interest from November 1, 1997)
Yield or
Rate Prig~
The Bonds will not be subject to redemption prior to maturity.
The Bonds are direct and general obligations of the City. For as long as any of the Bonds are outstanding, the City irrevocably
pledges to levy taxes annually without limitation as to rate or amount on all of the taxable property 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 Bonds, and the full faith, credit and resources of the City are pledged irrevocably for the annual levy and collection of those
taxes and the prompt payment of that principal and interest. See "SECURITY" herein.
The City has designated the Bonds as ~qualified tax-exempt obligations" under the Internal Revenue Code of 1986, as
amended. "See "CERTAIN OTHER FEDERAL INCOME TAX CONSEQUENCES" herein.
The Bonds are offered by the Underwriter when, as, and if issued, subject to the approving legal opinion of Foster Pepper &
Shefelman PLLC, Bond Counsel, Seattle, Washington. It is expected that the bonds in definitive, book-entry form are expected
to be ready for delivery at the facilities of DTC in New York, New York, on or around ,1997.
This cover page contains certain information for quick reference only./t is not a summary of this issue. /nvestors must read the
entire Official Statement to obtain information essential to the making of an informed investment decision.
Preliminary, subject to change.
Representations
Neither the City nor the Underwriter has authorized any dealer, broker, salesperson or other
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 representations
must not be relied upon as having been authorized by the City or the Underwriter. This
Preliminary Official Statement does not constitute an offer to sell, nor shall there be any sale of
the Bonds by any person in any jurisdiction in which it is unlawful for such person to make such
a sale.
The information contained in this Preliminary Official Statement has been obtained from City
officials and other sources believed to be reliable. Neither a representation, warranty nor
guarantee is made by the Underwriter as to the accuracy or completeness of any information in
this Preliminary Official Statement and nothing contained in this Preliminary Official Statement
is or shall be relied upon as a promise or representation by the Underwriter. The delivery of this
Preliminary Official Statement does not imply that the information contained herein is correct 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 delivery of the Bonds a signed statement
substantially to the effect that this Preliminary Official Statement, as of its date and as of the date
of the Bonds, neither contains any untrue statement of a material fact nor omits to state any
material fact necessary to make the statements therein, in light of the circumstances under which
they were made, not misleading in any material respect and that there has not been any material
adverse change in the normal operations or financial condition of the City nor-, to the best of the
City's knowledge, in the general economy of the City since the date of the Preliminary Official
Statement.
Secondary Market
It has been tl~e practice of the Underwriter to maintain a secondary market in municipal bonds
which it sells. The Underwriter intends to engage in secondary market trading of the Bonds,
subject to applicable securities laws. The Underwriter, however, is neither obligated to engage in
secondary trading nor to repurchase any of the Bonds at the request of the registered owners
thereof and no assurance can be given that a secondary market for the Bonds will be available.
In connection with the offering of the Bonds, the Underwriter may over-allot or effect
transactions that stabilize or maintain the market price of the Bonds at a level above that which
might otherwise prevail in the open market. Such stabilizing, if commenced, may be discontinued
at any time.
This Preliminary Official Statement, as of its date, is in a form that is expected to be "deemed
final" by the City for purposes of SEC Rule 15c2-12(b)(1) but is subject to revision, amendment
and completion in a final Official Statement that will be available within seven (7) business days
of the sale date of the Bonds.
ii
CITY OF BREMERTON
KITSAP COUNTY, WASHINGTON
MAYOR
Term Expires
December 31
Lynn Honon
1997
CITY COUNCIL
John Law
A1 Colvin
David Farr
Sherril Huff-Menees
Cecil McConnell
Carlos Montgomery
Richard Neville
Lon Overson
Robert Winters
Chairperson
Member
Member
Member
Member
Member
Member
Member
Member
1997
1997
1999
1997
1999
1999
1997
1999
1997
APPOINTED OFFICIALS
Richard Hanna
Kathleen McCluskey
Ian Sievers
Treasurer
Administrative Services
Director/City Clerk
Attorney
BOND COUNSEL
Foster Pepper & Shefelman PLLC
Seattle, Washington
UNDERWRITER
Bank of America NT&SA
doing business as Seafirst Bank ("Seafirst Bank")
Capital Markets Division
Seattle, Washington
TABLE OF CONTENTS
Page
Introduction ........................................................................................................................... ]
Description of the Bonds ....................................................................................................... 1
Authorization ........................................................................................................................ 3
Security ................................................................................................................................. 3
Purpose ...: .............................................................................................................................. 4
The Advance Refunding Plan ............................................................................................... 4
Verification of Mathematical Computations ......................................................................... 5
Sources and Uses of Funds ................................................................................................... 5
No Optional Redemption ...................................................................................................... 5
Open Market Purchase .......................................................................................................... 5
Debt Payment Record ........................................................................................................... 5
Future Financing ................................................................................................................... 5
Assessed Valuation Determination ....................................................................................... 6
Tax Collection Procedure ...................................................................................................... 6
Authorization of Debt ........................................................................................................... 6
General Obligation Indebtedness .......................................................................................... 7
Limits on Amount of General Obligation Indebtedness ....................................................... 7
Authorization of Short-Term Debt ........................................................................................ 7
Taxing Powers and Limitations ............................................................................................ 8
Auditing of City Finances ..................................................................................................... 9
Authorized Investments ........................................................................................................ 9
Net Direct Debt and Estimated Net ....................................................................................... 11
Overlapping General Obligation Debt .................................................................................. 11
Bonded Debt Ratios of the City ............................................................................................ 11
Statutory Debt Limit Calculation for the City ...................................................................... 12
Ad Valorem Tax Collection Record Of The City ................................................................ 13
Ad Valorem Property Tax Rates I ......................................................................................... 13
Comparative Statement of General Fund Revenues and Expenditures ............................... 14
Contingency reserve fundl ................................................................................................... 14
1997 General Fund Budgeted Expenditures ........................................................................ 15
General and Economic information ...................................................................................... 18
Tax Exemption ..................................................................................................... . ................. 22
Certain Other Federal Tax Consequences ............................................................................. 23
Preservation of Tax Exemption ............................................................................................. 23
Absence of Material Litigation ............................................................................................. 23
Continuing Disclosure ........................................................................................................... 24
Approval of Bond Counsel ................................................................................................... 25
Bond Rating .......................................................................................................................... 25
Conflicts of Interest ............................................................................................................... 25
Underwriting ......................................................................................................................... 26
Concluding Statement ....................................................... ~. ................................................... 26
Form of Legal Opinion ............................................................................................. Appendix A
iv
PRELIMINARY OFFICIAL STATEMENT
CITY OF BREMERTON, WASHINGTON
$1,215,000'
UNLIMITED TAX GENERAL OBLIGATION REFUNDING BONDS, 1997
INTRODUCTION
The City of Bremerton, Washington (the "City"), a municipal corporation duly organized and
existing under and by virtue of the laws of the State of Washington, furnishes this Official
Statement in connection with the offering of $1,215,000' principal amount of Unlimited Tax
General Obligation Refunding Bonds, 1997 (the "Bonds"). This Official Statement provides
information concerning the City and the Bonds.
DESCRIPTION OF THE BONDS
Principal Amount, Dates, Interest Rates, and Maturities
The Bonds will be issued in the principal amount of $1,215,000' and will be dated and bear
interest from November 1, 1997. The Bonds will mature annually on February 1, commencing
February 1, 1998, in the amounts, and will bear interest payable semiannually, commencing
February 1, 1998, at the rates set forth on the cover page of this Official Statement.
Interest on the Bonds will be computed on the basis of a 360-day year comprised of twelve 30-
day months.
Form and Denomination and Registration
The Bonds will be issued in fully registered form as to both principal and interest in the
denomination of $5,000 each or any integral multiple thereof within a single maturity. The
Bonds, when issued, will be registered in the name of Cede & Co., as registered owner and
nominee of The Depository Trust Company, New York, New York ("DTC").
DTC will act as securities depository for the Bonds. Individual purchases may be made in book-
entry form only. Purchasers will not receive certificates representing their interest in the Bonds
purchased. So long as Cede & Co. is the registered owner of the Bonds, as nominee of DTC,
references herein to the registered owners or bond owners will mean Cede & Co. and will not
mean the "Beneficial Owners" of the Bonds. In this Official Statement, the term "Beneficial
Owner" will mean the person for which a DTC participant acquires an interest in the Bonds.
So long as Cede & Co. is the registered owner of the Bonds, principal of and interest on the
Bonds are payable by wire transfer by the Paying Agent of the City to DTC, which, in turn, is
obligated to remit such principal and interest to the DTC participants for subsequent
disbursement to Beneficial Owners of the Bonds, as further described under the caption "Book-
Entry Only System."
Book-Entry Only System
The following information has been provided by DTC. Beneficial Owners should confirm the
following with DTC or the Participants. -
Preliminary, subject to change.
DTC will act as initial securities depository for the Bonds. The Bonds will be issued as fully
registered bonds, and will be registered in the name of Cede & Co. (DTC's partnership nominee).
One fully-registered Bond certificate will be issued for each maturity of the Bonds, in the
aggregate principal amount of such maturity, and will be deposited with DTC.
DTC is a limited-purpose trust company organized under the New York Banking Law, a
"banking organization" within the meaning of the New York Banking Law, a member of the
Federal Reserve System, a "clearing corporation" within the meaning of the New York Uniform
Commercial Code and a "clearing agency" registered pursuant to the provisions of Section 17A
of the Securities Exchange Act of 1934, as amended. DTC holds securities that its participants
(the "Participants") deposit with DTC. DTC also facilitates the settlement among Participants of
securities transactions, such as transfers and pledges, in deposited securities through electronic
computerized book-entry changes in accounts of the Participants, thereby eliminating the need of
physical movement of securities certificates. Direct Participants include securities brokers and
dealers, banks, trust companies, clearing corporations and certain other organizations. DTC is
owned by a number of its Direct Participants and by the New York Stock Exchange, Inc., the
American Stock Exchange, Inc. and the National Association of Securities Dealers, Inc. Access
to the DTC system is also available to others such as banks, brokers, dealers and trust companies
that clear through or maintain a custodial relationship with a Direct Participant, either directly or
indirectly ("Indirect Participants"). The rules applicable to DTC and its Participants are on file
with the Securities and Exchange Commission.
Purchases of the Bonds under the DTC system, in denominations of $5,000 or any integral
multiple thereof, must be made by or through Direct Participants, which will receive a credit for
the Bonds on DTC's records. The ownership interest of each actual purchaser of each Bond
("Beneficial Owner") is in turn to be recorded on the Direct and Indirect Participants' records.
Beneficial Owners will not receive written confirmation from DTC of their purchase, but
Beneficial Owners are expected to receive written confirmations providing details of the
transaction, as well as periodic statements of their holdings, from the Direct or Indirect
Participants through which the Beneficial Owner entered into the transaction. Transfers of
ownership interests in the Bonds are to be accomplished by entries made on the books of
Participants acting on behalf of Beneficial Owners. Beneficial Owners will not receive
certificates representing their ownership interests in the Bonds, except in the event that use of the
book-entry system for the Bonds is discontinued.
To facilitate subsequent transfers, all Bonds deposited by Participants with DTC are registered in
the name of DTC's partnership nominee, Cede 8,: Co. The deposit of Bonds with DTC and their
registration in the name of Cede & Co. effect no change in beneficial ownership. DTC has no
knowledge of the actual Beneficial Owners of the Bonds. DTC's records reflect only the identity
of the Direct Participants to whose accounts such Bonds are credited, which may or may not be
the Beneficial Owners. The Participants will remain responsible for keeping account of their
holdings on behalf of their customers.
Conveyance of notices and other communications by DTC to Direct Participants, by Direct
Participants to Indirect Participants, and by Direct Participants and Indirect Participants to
Beneficial Owners will be governed by arrangements among them, subject to any statutory or
regulatory requirements as may be in effect from time to time.
Redemption notices will be sent to Cede & Co. If less than all of the Bonds are being redeemed,
DTC's practice is to determine by lot the amount of the interest of each Direct Participant in
Bonds to be redeemed.
Neither DTC nor Cede & Co. will consent or vote with respect to Bonds. Under its usual
procedures, DTC mails an Omnibus Proxy to the City as soon as possible after the record date.
The Omnibus Proxy assigns Cede & Co.'s consenting or voting rights to those Direct
Participants to whose accounts the Bonds are credited on the record date (identified in a listing
attached to the Omnibus Proxy).
Principal and interest payments on the Bonds will be made to DTC. DTC's practice is to credit
Direct Participants' accounts on payable date in accordance with their respective holdings shown
on DTC's records unless DTC has reason to believe that it will not receive payment on the
payable date. Payments by Participants to Beneficial Owners will be governed by standing
instructions and customary practices, as is the case with securities held for the accounts of
customers in bearer form or registered in "street name," and will be the responsibility of such
Participant and not of DTC, the Fiscal Agent, or the City, subject to any statutory or regulatory
requirements as may be in effect from time to time. Payment of principal and interest to DTC is
the responsibility of the City or Fiscal Agent. Disbursement of such payments to Direct
Participants will be the responsibility of DTC, and disbursement of such payments to the
Beneficial Owners will be the responsibility of Direct and Indirect Participants.
DTC may discontinue providing its services as securities depository with respect to the Bonds at
any time by giving reasonable notice to the City or the Fiscal Agent. Under such circumstances
and in the event that a successor securities depository is not obtained, Bond certificates are
required to be printed and delivered.
The City may decide to discontinue use of book-entry transfers through DTC (or a successor
securities depository). In that event, Bond certificates will be printed and delivered.
The information in this section concerning DTC and DTC's book-entry system has been obtained
from sources the City believes to be reliable, but the City takes no responsibility for the accuracy
thereof.
Procedure in the Event of Revisions of Book-Entry Transfer System
If the City is unable to retain a qualified successor to DTC or the City has determined that it is in
the best interest of the City not to continue the book-entry system of transfer or that interests of
the Beneficial Owners of the Bonds might be adversely affected if the book-entry system of
transfer is continued, the City will execute, authenticate and deliver at no cost to the Beneficial
Owners of the Bonds or their nominees, Bonds in fully registered form, in the denomination of
$5,000 or any integral multiple thereof. Thereafter, the principal of the Bonds will be payable
upon due presentment and surrender thereof at the principal office of the Bond Registrar; interest
on the Bonds will be payable by check or draft mailed or by wire transfer (wire transfer will be
made only if so requested in writing and if the registered owner owns at least $1,000,000 par
value of the Bonds), to the persons in whose names such Bonds are registered, at the address
appearing upon the registration books on the 15th day of the month next preceding an interest
payment date, and the Bonds will be transferable as provided in the Bond Ordinance.
AUTHORIZATION
The Bonds are issued in accordance with the provisions of the Constitution and applicable
statutes of the State of Washington, pursuant to Ordinance No. (the "Ordinance") of the
Bremerton City Council, passed on ,1997.
SECURITY
The Bonds are direct and general obligations of the City. For as long as any of the Bonds are
outstanding, the City irrevocably pledges to levy taxes annually without limitation as to rate or
amount on all of the taxable property 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 Bonds, and the full faith, credit and resources of the City are pledged irrevocably for the
annual levy and collection of those taxes and the prompt payment of that principal and interest.
PURPOSE
The proceeds of the Bonds will be used to advance refund the callable portion of the City's
Unlimited Tax General Obligation and Refunding Bonds, Series 199 IA, maturing in the years
2000 through 2006, in the amount of $1,145,000 (the "Refunded Bonds"), which are being
issued to provide debt service savings to the City and its taxpayers
A portion of the Bond proceeds will be used to pay the cost of issuing the Bonds.
THE ADVANCE REFUNDING PLAN
The City has covenanted to irrevocably set aside sufficient investments required to effect the
refunding of the Refunded Bonds, plus any necessary initial cash, which investments shall be
purchased from the proceeds of the Bonds to redeem the Refunded Bonds in accordance with the
provisions of the Ordinance which authorizes the redemption and retirement of the Refunded
Bonds prior to their stated maturities.
Pursuant to the Ordinance, the City has irrevocably covenanted to call for redemption on
February 1, 1999, the Refunded Bonds maturing on or after February 1, 2000, at a price of par
plus accrued interest, in accordance with the provisions of the Refunded Bonds Ordinance.
Said defeasance and call for early redemption relative to the Refunded Bonds shall be irrevocable
after the final purchase and delivery of the Government Obligations to the Refunding Trustee,
except as provided in the Refunding Agreement relating to the substitution of securities.
The Refunding Trustee
Banker's Trust, is serving as the Refunding Trustee for the purpose of managing the cash and
investments that comprise the Government Obligations for the Refunded Bonds, which will pay
the principal of, interest on and redemption premium, if any, on the Refunded Bonds as the same
become due and payable.
Acquisition of the Government Obligations
Pursuant to the Ordinance, a portion of the proceeds of the Bonds (exclusive of accrued interest
thereon, if any, which shall be paid into the City's Bond Fund), will be delivered to the
Refunding Trustee on the day of closing, which amount will be used for the sole purpose of
purchasing the Government Obligations and paying the cost of issuing the Bonds.
The City shall defease the Refunded Bonds and discharge such obligations by the Refunding
Trustee's irrevocable purchase of certain "Government Obligations" as such obligations are
defined in Chapter 39.53 RCW as now or hereafter amended (which obligations so purchased are
herein called "Government Obligations"), bearing such interest and maturing as to principal and
interest in such amounts and at such times that, together with any necessary beginning cash
balance, will provide for the payment of:
a) the interest that will become due and payable on the Refunded Bonds to and including
February 1, 1999, when due; and
b) the redemption on February 1, 1999, of the Refunded Bonds, at a redemption price equal
to 100% of the principal amount.
Such Government Obligations shall be purchased at a yield not greater than the yield permitted
by the Internal Revenue Code of 1986, as amended (the "Code"), and applicable regulations
thereunder relating to acquired obligations in connection .with refunding bond issues.
4
VERIFICATION OF MATHEMATICAL COMPUTATIONS
Deloitte & Touche LLP will verify from the information provided to them the mathematical
accuracy as of the date of the closing on the Bonds of (1) the computations contained in the
provided schedules to determine that the anticipated receipts from the securities and cash
deposits listed in the Underwriter's schedules, to be held in escrow, will be sufficient to pay,
when due, the principal, interest and call premium payment requirements, if any, of the Refunded
Bonds, and (2) the computations of yield on both the securities and the Bonds contained in the
provided schedules used by Bond Counsel in its determination that the interest on the Bonds is
exempt from tax. Deloitte & Touche LLP will express no opinion on the assumptions provided to
them, nor as to the exemption from taxation of the interest on the Bonds.
SOURCES AND USES OF FUNDS
The following table sets forth the estimated sources and uses of the proceeds of the Bonds, in
accordance with the Advance Refunding Plan.
Sources of Funds:
· Par Amount of the Bonds
· Net Original Issue Premium (Discount)
· Accrued Interest
Total Sources of Funds
Use of Funds:
· Purchase Price of Government Obligations
· Initial Escrow Cash
· Costs of Issuance, Including Underwriter's Discount
· Accrued Interest and Contingency
Total Uses of Funds
NO OPTIONAL REDEMPTION
The Bonds will not be subject to redemption prior to maturity.
OPEN MARKET PURCHASE
The City reserves the right and option to purchase any or all of the Bonds in the open market at
any time at any price acceptable to the City plus accrued interest.
DEBT PAYMENT RECORD
The City has always promptly met principal and interest payments on outstanding bonds when
due. Additionally, no refunding bonds have been issued for the purpose of preventing an
impending default.
FUTURE FINANCING
The City does not anticipate any additional long-term financing needs for the next 12 months.
ASSESSED VALUATION DETERMINATION
In the State of Washington, the County Assessor (an elected official) determines the value of all
real and personal property throughout the City (including the City) which is subject to ad
valorem taxation. The County Assessor's duties and methods of determining value are
prescribed and controlled by statute and by detailed regulations promulgated by the Department
of Revenue of the State of Washington. For tax purposes the assessed value of property is set at
100% of its actual value. All property is subject to physical inspection every si~ years. However,
each parcel's assessed valuation is subject to a comparison with market value annually and may
be updated if necessary. The property is listed by the County Assessor on a roll at its current
assessed value and the roll is filed in the County Assessor's office. The County Assessor's
determinations are subject to revisions by the County Board of Equalization and, for certain
property, subject to further revisions by the State Board of Equalization. After all administrative
procedures are completed, the taxing unit receives the County Assessor's final certificate of
assessed value of property within the taxing unit.
TAX COLLECTION PROCEDURE
Property taxes are levied in specific amounts, and the rate for all taxes levied for all taxing
districts in the County (including the City) are determined, calculated and fixed by the Assessor
based upon the assessed valuation of the property within the various taxing districts. The County
Assessor extends the taxes to be levied within each taxing district upon a tax roll which contains
the total amount of taxes to be so levied and collected. The tax roll is delivered to the County
Treasurer (an elected official) by January 15, of each year, and an abstract of the tax roll,
showing the total amount of taxes collectible in each of the taxing districts for the year, is
delivered to the County Auditor (an elected official) at the same time. The County Auditor
issues to the County Treasurer a warrant authorizing the collection of taxes listed on the County
Assessor's certified tax roll. The County Treasurer creates a tax account for each taxpayer and is
responsible for the collection of taxes due to each account. All such taxes are due and payable
on the 30th of April of each year, but if the amount due from a taxpayer exceeds thirty dollars,
one-half may be paid then and the balance no later than October 31, of each year. The method of
giving notice of payment of taxes due, the County Treasurer's accounting for the money
collected, the division of the taxes among the various taxing districts, notice of delinquency, and
collection procedures are all covered by detailed statutes.
The lien for ad valorem property taxes which have been levied prior to the filing of federal tax
liens is prior to such federal tax liens.
In other respects, and subject to the possible "Homestead Exemption," the lien for delinquent
property taxes is prior to all other liens or encumbrances of any kind on real or personal property
subject to taxation. By law the taxing unit may commence foreclosure of a tax lien on real
property after three years have passed since the first delinquency. Washington State's courts
have not decided whether the Homestead Law (Chapter 6.13 RCW) may give the occupying
home owner a right in the forced sale of the family residence for delinquent general property
taxes to retain the first $30,000 of proceeds of the sale. (See Algona v. Sharp, 30 Wn. App. 837,
638 P.2d 627 (1982), holding the homestead right superior to liens for local improvement district
assessments).
AUTHORIZATION OF DEBT
The power of the City to contract debt of any kind is controlled and limited by state law. All debt
must be set forth in accordance with detailed budget procedures and paid for out of identifiable
receipts and revenues. The budget must be balanced for each fiscal year. It is unlawful for an
officer or employee of the City to incur liabilities in excels of budgetary appropriations.
6 /00
GENERAL OBLIGATION INDEBTEDNESS
Under the Constitution and statutes of the State, the City may incur two types of general
obligation indebtedness (including bonds). The two types are primarily differentiated by the
limits on the real and personal property taxes which may be collected for the payment thereof.
Limited tax general obligation indebtedness is payable from taxes upon all the taxable property
in the City which may be imposed by the City within the limitations prescribed by State statute
without a vote of the people (sometimes referred to as "non-voted debt" or "non-voted bonds" or
"councilmanic bonds"). The statutory limits on the levy of such taxes are described in the section
herein entitled "LIMITS ON AMOUNT OF GENERAL OBLIGATION INDEBTEDNESS."
Unlimited tax general obligation indebtedness is payable from taxes without limitation as to rate
or amount, imposed upon all taxable property in the City. Unlimited tax indebtedness may be
incurred only after approval by 60% of the City voters at an election in which the total vote cast
exceeds 40% of the votes cast at the last preceding general election of the City or State. Such
unlimited tax indebtedness is sometimes referred to as "voted debt," "voted bonds" or "unlimited
tax bonds."
Bonds issued to refund outstanding general obligation indebtedness of either type may be issued
without voter approval.
LIMITS ON AMOUNT OF GENERAL OBLIGATION INDEBTEDNESS
State statutes limit the total principal amount of all City general obligation indebtedness incurred
for "general" purposes, both limited tax and unlimited tax, to 2.5% of the actual value of taxable
property within the City. Within this 2.5% limitation, non-voted indebtedness is further limited
to 1.5% of the value of such taxable property.
The City is additionally authorized to incur general obligation indebtedness for the following
"special" purposes, with voter approval, in the total principal amount of up to the following
percentages of the actual value of taxable property within the City: water, artificial light and
sewers: 2.5%; open space and park facilities: 2.5%. The combination of unlimited tax and
limited tax general obligation debt for all purposes cannot exceed 7.5% of the City's assessed
valuation.
The State statutory limits on City general obligation indebtedness described in this section are
more restrictive than those contained in the State Constitution. Both the Constitutional and
statutory debt limits may be exceeded if necessary to meet obligations made mandatory by State
law or, if necessary, to maintain the corporate existence of the City.
In computing total general obligation indebtedness, the following "assets" may be deducted
against the principal amount of indebtedness outstanding: (a) money and investments on deposit
in general obligation bond retirement funds: (b) taxes (both current and delinquent) levied for the
payment of general obligation indebtedness; and (c) delinquent (but not current) taxes due the
general fund.
In addition to limits on the total principal amount of general obligation indebtedness described in
this section, the Constitution and statutes of the State impose other limitations on the City's levy
of taxes upon real and personal property (See section herein entitled "TAXING POWERS AND
LIMITATIONS".)
AUTHORIZATION OF SHORT-TERM DEBT
As a result of 1982 legislation, any Washington municipal corporation may borrow money and
issue short-term obligations, the proceeds of which may be used for any lawful purpose. Short-
7
term obligations may be issued in anticipation of the receipt of revenues, taxes, or grants or the
sale of (1) general obligation bonds if the bonds may be issued without the consent of the voters
or if previously ratified by the voters; (2) revenue bonds if the bonds have been authorized by
ordinance or resolution; or (3) local improvement district bonds if the bonds have been
authorized by ordinance or resolution. These short-term obligations shall be repaid out of money
derived from the source or sources in anticipation of which they were issued or from any money
legally available for this purpose.
Additionally, the City may incur short-term indebtedness in the following ways: first, in an
emergency, the Council members may put a plan into effect and authorize indebtedness outside
the current budget. All expenditures for emergency purpose shall be paid by warrants from any
available money in the fund properly chargeable with such expenditures. If there is insufficient
money on hand in the fund, the warrants become registered interest-bearing warrants. In adopting
the budget for any fiscal year, the Council members shall appropriate funds to retire any
outstanding registered warrants issued since the adoption of the last preceding budget. Second,
the City may, without a vote of the electors, purchase property on a conditional sales contract if
the total contract amount, together with the other non-voted general obligation indebtedness of
the City, does not exceed 3/4 of one percent of the value of taxable property in the City; any item
so purchased must be budgeted for payment in accordance with the terms of the contract.
TAXING POWERS AND LIMITATIONS
Pursuant to RCW 84.52.043, cities may levy, without a vote of the residents residing therein, a
maximum of $3.375 per thousand for general city purposes (the "regular levy"). Cities with full-
time firemen may levy an additional $.225 per thousand to fund the city's Fireman's Pension
Fund (RCW 41.16.060), thus creating a maximum annual levy rate of $3.60 per thousand. The
City is currently levying $3.3573 per thousand dollars of taxable assessed valuation for its
regular levy.
According to RCW 27.12.390, any city or town annexed to a rural library district, island library
district, or inter-county rural library district, such as the City, shall be entitled to levy up to three
dollars and sixty cents per thousand dollars of assessed valuation less any regular levy made by
such library district in the incorporated area, notwithstanding any other provision of law.
A city's regular property taxes are subject to the provisions of a state statute limiting the growth
of annual property taxes (RCW 84.55.010). The limitation provides that the regular property
taxes payable in the following year shall not exceed one-hundred and six percent (106%) of the
amount of the single highest regular levy amount lawfully levied by the municipal entity in the
three immediately preceding calendar years plus an additional amount due to the incremental
assessed valuation increase in the municipal entity caused by new construction and property
improvements. The regular property taxes levied by a city may be increased above the 106%
limitation upon the affirmative vote of a majority of the voters residing in the municipal entity at
an election held for such purposes (RCW 84.55.050).
On March 6, 1997, the State Legislature enacted Senate Bill 5835 (the "Property Tax Act")
which is subject to a state-wide referendum for adoption and ratification or rejection at the
November 11, 1997, general election (1997 Laws Chapter 3). If adopted by the voters, a
municipality's tax levy would be limited to an amount of 100% of the highest property tax levy
of the three most recent years multiplied by a limit factor. The limit factor is defined in the
Property Tax Act as (i) the lesser of 106% or 100% plus inflation, or (ii) 106% or less, if
approved by a majority plus one vote of the governing body of the municipality upon a finding of
substantial need.
8
/00-
AUDITING OF CITY FINANCES
The State Auditor is required to examine the affairs of cities at least once every two years. The
examination must include, among other things, the financial condition and resources of the City,
whether the laws and constitution of the State are being complied with, and the methods and
accuracy of the accounts and reports of the City. Reports of the Auditor's examinations are
required to be filed in the office of the State Auditor and in the auditing department of the City.
AUTHORIZED INVESTMENTS
Chapter 39.59 RCW limits the investment of public funds to the following authorized
investments: bonds of the State and any local government in the State, which bonds are rated at
the time of investment in one of the three highest credit ratings by a nationally recognized rating
agency; general obligation bonds of other states and subdivisions thereof so long as those bonds
are rated in one of the three highest categories; registered warrants of a local government within
the same county as the entity making the investment; and any investment authorized by law for
the treasurer of the State or any local government exclusive of certificates of deposit of banks or
bank branches not located in the State. Under chapter 43.84 RCW, the State Treasurer may invest
in non-negotiable certificates of deposit in designated qualified public depositories; in
obligations of the U.S. government, its agencies and wholly owned corporations; in bankers'
acceptances; in commercial paper; in repurchase agreements; in the obligations of the federal
home loan bank, federal national mortgage association and other government corporations
subject to statutory provisions. Utility revenue bonds and warrants of any city and bonds or
warrants of a local improvement district are also eligible investments (RCW 35.39.030).
Any municipal corporation, including the City, may authorize the investment of funds not
required for immediate expenditure by the County Treasurer. Such funds of the City, including
debt service funds, may be invested by the County Treasurer. The County Treasurer may, upon
the request of one or more units of local government that invest their money with the County,
combine those monies for the purposes of investment (RCW 36.29.022). The office of the
County Treasurer receives up to five percent of the earnings on such investments, subject to a
maximum of fifty dollars on each transaction, as its investment service fee. The County
Treasurer may reimburse its office for any expenses incurred in the establishment and
maintenance of such a County investment pool (RCW 36.29.024).
Local Government Investment Pool
The State Treasurer's Office administers the Washington State Local Government Investment
Pool (the "LGIP"), a $1.25 billion fund that invests money on behalf of more than 350 cities,
counties and special taxing districts. In its management of LGIP, the State Treasury adheres, at
all times, to the principles appropriate for the prudent investment of public funds. These are, in
priority order, (i) the safety of principal; (ii) the assurance of sufficient liquidity to meet cash
flow demands; and (iii) to attain the highest possible yield within the constraints of the first two
goals. Historically, the LGIP has had sufficient liquidity to meet all cash flow demands.
The LGIP, authorized by chapter 43.250 RCW, is a voluntary pool that provides its participants
the opportunity to benefit from the economies of scale inherent in pooling. It is also intended to
offer participants increased safety of principal and the ability to achieve a higher investment
yield than would otherwise be available to them. The LGIP is a conservatively managed, highly
liquid money market fund. The pool is restricted to investments with maturities of one year or
less, and the average investment life typically is less than 90 days. Permissible investments
include U.S. government and agency securities, bankers' acceptances, high quality commercial
paper, repurchase and reverse repurchase agreements, and certificates of deposit issued by
qualified Washington State depositories.
Authorized Investments for Bond Proceeds
In addition to the eligible investments discussed above, bond proceeds only may also be invested
in mutual funds with portfolios consisting of U.S. government and guaranteed agency securities
with average maturities of lesS than four years; municipal securities rated in one of the four
highest categories; and money market funds consisting of the same, so long as municipal
securities held in the fund(s) are in one of the two highest rating categories. Bond proceeds may
also be invested in shares of money market funds with portfolios of securities otherwise
authorized by law for investment by local governments (RCW 39.59.030).
The City's Investments
The investments of the City, except those of the Community Development Block Grant Fund, are
managed in a pooled format. Interest earnings are distributed monthly to the individual funds
based on their respective balances at the beginning of the month. These pooled investments are
classified on the balance sheet as cash and equivalents. As required by state statue, all
investments and deposits of the City's funds are obligations of the U.S. Government, U.S.
agency issues, deposits with the State Treasurer's Investment Pool, prime bankers' acceptances,
deposits with Washington State banks and savings and loan institutions or repurchase agreements
with authorized securities as collateral.
10
NET DIRECT DEBT AND ESTIMATED NET
OVERLAPPING GENERAL OBLIGATION DEBT
(As of August 31, 1997)
Direct Debt:
Voted General Obligation Bonds Outstanding .......................$
Non-Voted Bonds Outstanding ...............................................
Bank Line of Credit Outstanding ............................................
Tax Anticipation Notes Outstanding ......................................
Lease-Purchase Contract Outstanding ....................................
The Bonds ...............................................................................
Less: Bond Fund Balance .......................................................
255,000
8,907,630
8,210
1,250,000
15,873
! ,215,000
(233,214)
Net Direct Debt ..........................................................................
Estimated Net Overlapping Debt:
Net G.O. Debt Percent of Amount of
Outstandin(t Overlao Overlao
Kitsap County ..................................... $51,804,818 10.96%
Port of Bremerton ................................ 1,920,000 25.78
Bremerton School District No. 100-C 28,705,000 73.93
Central Kitsap School District No. 401 88,285,000 1.11
South Kitsap School District No. 402 11,092,000 .05
$ 5,675,656
494,976
21,221,135
976,130
5,276
$ 11,418,499
Estimated Net Overlapping Debt: ...........................................
Net Direct Plus Estimated Net Overlapping Debt: ..........................................
BONDED DEBT RATIOS OF THE CITY
$ 28,373,173
$ 39,936,672
Preliminary 1997 Assessed Valuation for Collection Year 1998 ................. $ 1,316,862,3322
Estimated City Population (1997) ................................................................. 39,5103
Assessed Valuation Per Capita ..................................................................... $ 33,330
Net Direct Debt to Assessed Valuation ............................................................ 87%
Net Direct and Estimated Overlapping Debt to Assessed Valuation ............ 3.02%
Net Direct Debt Per Capita ........................................................................... $ 289
Net Direct and Estimated Overlapping Debt Per Capita ...............................$ 1,007
I Adjusted to reflect the issuance of the Bonds; excludes the Refunded Bsnds.
2 Assessed valuation is stated as the full assessed value of all taxable real and personal property in the City. Preliminary value
provided by thc Kitsap County Assessor's Office as of 9-29-97.
3 Provided by the City.
11 :
STATUTORY DEBT LIMIT CALCULATION FOR THE CITY
(As of August 31, 1997)I
Current Assessed Valuation2 ...............................................................................
General Purposes
Non-Voted Debt Capacity (1.5 of 1% of Assessed Valuation) .....................$ 19,752,935
Less: Non-Voted Bonds Outstanding ................................................. (8,907,630)
Less: Tax Anticipation Notes Outstanding ......................................... (1,250,000)
Less: Executory Lease-Purchase Contracts ........................................ (15,873)
Less: Bank Line of Credit Outstanding .............................................. (8,210)
Less: Non-Voted Portion of the Refunded Bonds .............................. (70,000)
Plus: Bond Fund Balance ................................................................... 233,214
Remaining Non-voted G.O. Capacity .................................. $ 9,734,436
$ 1,316,862,332
Voted Debt Capacity (2.5% of Assessed Valuation) .................................... $ 32,921,558
Less: Voted Bonds Outstanding (Including the Bonds) ..................... (1,470,000)
Less: Non-Voted Bonds Outstanding ................................................. (8,907,630)
Less: Tax Anticipation Notes Outstanding ........................................ (1,250,000)
Less: Bank Line of Credit Outstanding .............................................. (8,2 I0)
Less: Lease-Purchase Contract Outstanding ....................................... (15,873)
Plus: Bond Fund Balance ................................................................... 233,214
Total Remaining Capacity For General Purposes ........................................ $ 21,503,059
Utility Purposes
Voted Debt Capacity (2.5 % of Assessed Valuation) ................................... $ 32,921,558
Less: Voter Approved Bonds Outstanding ......................................... 0
Remaining Capacity for Utility Purpose .............................................. $ 32,921,558
Parks and Open Space Purposes
Voted Debt Capacity (2.5 % of Assessed Valuation) ................................... $ 32,921,558
Less: Voter Approved Bonds Outstanding .........................................
Remaining Capacity for Parks and Open Space .......... J .....................
$ 32,921,558
Adjusted to reflect the issuance of the Bonds.
Assessed valuation is stated as the full assessed value of all taxable real and personal property in the City. Preliminary value
provided by Kitsap County Assessor's Office as of 9-29-97.
AD VALOREM TAX COLLECTION RECORD OF THE CITY 1
Collection
Year
1997
1996
1995
1994
1993
1992
NOTE:
Collected Collected as of
Taxable Year of Levy Au_aust 31, 1997
Assessed Tax
Valuation2 Levy_ Amount Perce~t Amounl; Percent
$ 1,299,548,001 $ 4,945,410 N/A3 N/A3 N/A3 N/A3
1,223,940,521 4,681,638 $ 4,478,455 95.66% $4,572,088 97.66%
1,203,299,197 4,476,487 4,247,668 94.88 4,429,036 98.94
1,169,824,600 4,144,873 3,973,275 95.86 4,133,267 99.72
1,072,545,656 4,292,888 4,110,011 95.74 4,286,878 99.86
949,107, ! 96 3,544,019 3,397,651 95.87 3,534,805 99.74
Taxes are due and payable on April 30, of each year. At least one half of the tax amount due must be paid
on or before April 30, or else the total amount becomes delinquent on May 1. The second half of the tax
due is payable on or before October 31, becoming delinquent November 1.
AD VALOREM PROPERTY TAX RATES1
(Rates In Dollars per $1,000 of Assessed Valuation)
City School Emergency
Collection General City City State Kitsap Port of District No. Medical Regional
Year Fund Bonds Soecial School County Bremerton 10OC PUD Services Library Totitl
1997 $3.3469 $.2153 $ 0 $3.6467 $l.6641 $.4338 $5.1331 $.0998 $.2500 $.9781 $15.7678
1996 3.3573 .2255 0 3.4848 1.6347 .4287 5.1551 .0939 .2500 .4677 15.0977
1995 3.2470 .2308 0 3.5508 1.2249 .4079 2.1387 .0940 .2500 .4595 11.6036
1994 3.0635 .2393 0 3.4297 1.1731 .3897 5.0440 .0865 .2490 .4447 14.1210
1993 3.0871 .2543 .4339 3.3978 1.2383 .3955 5.2311 .0904 .2500 .4283 14.8067
BREMERTON LEVY RATES PER $1,000 OF ASSESSED VALUE
Collection Year General EMS Bonds Total
1997 $ 3.3469 $ .2500 $ .2153 $ 3.8122
1996 3.3573 .2500 .2255 3.8328
1995 3.2470 .2500 .2308 3.7278
1994 3.0635 .2490 .2393 3.5518
1993 3.0871 .2500 .68823 4.0253
Source: Kitsap County Treasurer
2 Assessed valuation is stated as the assessed valuation of all taxable real and personal property in the City. Preliminary
assessed value for collection year 1998 as of 9-29-97 is $1316,862,332.
3 Not available: in process of collection.
3 Includes $.4339 special levy for law and justice.
13
Revenues: Taxes
Licenses & Permits
Intergovernmental
Charges for Services
Fines & Forfeits
Miscellaneous
Total Revenues
COMPARATIVE STATEMENT OF GENERAL FUND
REVENUES AND EXPENDITURES 1
(Fiscal Year Ending December 31)
1996 1995 1994 1993
1992
$ 15,498,917 $ 14,501,567 $ 14,137,828 $ 13,340,322 $ 12,254,300
312,203 298,989 390,454 362,968 367,369
742,432 847,272 728,407 778,927 1,199,015
1,864,848 1,783,646 1,394,815 1.502,067 1,265,887
433,775 483.964 593,093 556,447 579.071
342.700 248.74) 240.672 261.19~ 295.810
$ 19,194.875 $ 18,164,181 $ 17,485,269 $ 16,801,929 $ 15,961,452
Expenditures:
General Government $ 5,313,516 $ 5,009.311 $ 4,843,656 $ 5,039.485 $ 4,702,330
Security of Persons & Prop. 9,313,570 8.614.262 8,219,945 7,850,957 7.326,703
Physical Environment 942,764 848,346 587.931 698,08i0 655,845
Transportation 959,327 850,639 840,530 879,838 805,809
Economic Environment 276,689 454,250 514,320 448.824 352,504
Mental & Physical Health 30,818 264,239 250,493 249,239 236,594
Culture & Recreation 1,867,204 1,566.669 1,426,763 1,323,285 1,178,13 I
Redemption of Gen. L.T. Debt 0 0 24.672 30,735 28.393
Debt Serv ice 85,540 59,860 44,593 18,414 125,479
Capital Outlay 40a.888 486.005 385.414 277.113 228.162
Total Expenditures
Other Financing Sources (Uses)
Operating Transfers In
Operating Transfers Out
General Fixed Assets Disposal
Proceeds & General L.T. Debt
Total Other Financing Sources
(Uses)
Fund Balance, January 1
Prior Year's Corrections
Residual Equity Tranfers
Other Equity Changes
$ 19,194.316 $ 18,153,581 $ 17,138,317 $ 16,815,970 $ 15,639,950
$ 196.671 $ 6,000 $ 6,000 $ 6,000
(357,180) (307,836) (398.376) (236,725)
36,671 2,886 59,640 0
237.700 O O Q
6,000
(334,764)
1,893
0
TOTAL ENDING FUND BALANCE $
113,916 $ (298,950) $ (323,736) $ (230,725) $ 326,871
709,671 $ 1,064,368 $ (44,548) $ 206,399 $ 217,464
0 0 0 0 0
6,435 (65,128) 9,717 (6,108) (1,545)
30.554 (I.219) 1.084.983 (73) (4.149)
860.576 $ 709.671 $ 1,064,368 $ (44,548) $ 206.401
Ending Fund Balance
CONTINGENCY RESERVE FUND1,2
YEAR-END BALANCES
1996 1995 1994 1993 1992
$ 673,110 $ 709.040 $ 704.922 $ 387,205 $ 360,523
Source: City of Bremerton Annual Financial Reports. All years have been audited by the Washington State Auditor's
Office.
Money in this fund in excess of $650,000 is transferred to the General Fund to finance capital purchases.
1997 GENERAL FUND BUDGET
(Fiscal Year Ending December 31)
REVENUES
Beginning Fund Balance ........................................................ $
Taxes ......................................................................................
Licenses and Permits ..............................................................
Intergovernmental Revenue ...................................................
Charges for Services ...............................................................
Fines and Forfeitures ..............................................................
Mescellaneous and Other .......................................................
Total Revenue ............................................................................ $
EXPENDITURES
General Government
City Council ........................................................................... $
Executive ................................................................................
Adminisa'ative Services2 .......................................................
Police & Fire Pension .....................................................
Intergovernmental Service ..............................................
Misc. Non-Departmental ................................................
Legal Department ...................................................................
Human Resources ...................................................................
Community Development ......................................................
City Auditor ...........................................................................
Public Safety
Police Department ..................................................................
Fire Department .....................................................................
Public Works
General Facilities ...................................................................
Engineering ............................................................................
Transportation ........................................................................
Leisure Services
General Parks .........................................................................
Recreation ...............................................................................
Senior Center ..........................................................................
Pool .........................................................................................
Cemetery Services ..................................................................
Athletics .................................................................................
Tax Anticipation Note Debt Service ......................................
Total Current Expenditures ................................................... $
1997
458,500
15,778,000
342,625
666,098
1,634,794
430,361
2.964.095
22,274,473
146,675
204,162
1,915,763
1,315,057
110,986
1,349,771
460,133
222,867
700,189
84,983
5,793,222
3,571,381
454,908
466,986
977,105
1,026,162
198,462
154,625
264,694
69,938
286,404
2.5oo.oo0
22,274,473
Source: City of Bremerton.
City Clerk, Treasurer and Information Services are combined under Administrative Services.
15 ~
/07
SCHEDULE OF GENERAL OBLIGATION BOND DEBT SERVICE FOR THE CITY
(As of December 31)
Year~
1997
1998
1999
2O00
2002
2003
2OO4
2005
2006
2007
2008
2009
2010
2011
2012
Total
Outstanding Bonds
Non-Voted Voted General Obligation Bonds
General Obligation Bonds Outstanding The Bonds Total
Debt
Princl_r)al Interes. t Principal Interest Principal Interest service
$ 365,781 $ 537,438 $ 55,000 $ 8,550 $ 0
428,769 518,715 195,000 9,555 30,000
452,391 496,105 60,000 1.800 15,000
480,758 471,815 0 0 170,000
680,000 445,850 0 0 185,000
720,000 406,057 0 0 185,000
760,000 363,213 0 0 205,000
810,000 317,252 0 0 135,000
855,000 267,563 0 0 140,000
910,000 213,872 0 0 150,000
965,000 155,663 0 0
275,000 92,475 0 : 0 0
290,000 75,370 0 0 0
315,000 57,195 0 0 0
335,000 37,017 0 0 0
275,000 15,537 Q Q 0
$ 8,917,699 $ 4,471,137 $ 310,000 $ 19,905 $ 1,215,000
CITY PROFILE
The City was incorporated in 1901 and operates as Home Rule Charter City with a Mayor
Council form of government. The Council is comprised of nine members, elected by district by
the citizens of the City, each serving a four-year term. The Council Members are part-time
elected officials who exercise the legislative powers of the City and determine matters at policy.
The Mayor, a full-time elected official, is the chief executive officer of the City. The Officers
and department directors are appointed by the mayor with Council approval.
The City provides a full range of municipal services including fire and police protection, parks
and recreation facilities/activities, streets, planning, zoning and general administrative services.
The City operates water, sewer and stormwater utility systems. Currently, there are 322 full-time
employees of the City.
Key Personnel
Lynn Hot'ton, Mayor: Ms. Horton began her first term as Mayor of the City in 1994. Before her
election as mayor, she served for six years on the Bremerton City Council. She is the past Chair
and current Board Member of the Kitsap Regional Planning Council, and a board member of
Kitsap Transit, Kitsap County Cen-Com and the Bremerton-Kitsap County Health Department.
Ms. Horton is a graduate of the University of Washington and has been a resident of the City
since 1974.
Richard Hanna, City Treasurer: Mr. Hanna has been the Treasurer of the City of Bremerton since
1986. Before joining the City, he was Treasurer of the City of Centralia, Washington. Mr. Hanna
received his Bachelor's Degree in Accounting from Western Washington University in 1974 and
a Masters of Business Administration Degree in Finance from University of Puget Sound in
1983. Mr. Hanna is a member of the Washington Finance Officers Association, Washington
Municipal Treasurers Association and Puget Sound Finance Officers Association.
Labor Relations
The City has entered into written agreements with each of the bargaining groups set forth below;
agreements contain provisions on such matters as vacations, sick leave, medical and dental
insurance, salaries, working conditions and grievance procedures.
Employees of the City represented by bargaining units are as follows:
Union Membership
Teamsters Local 589 130
Patrolman's Association 53
Police Management Association 5
International Association of 44
Fire Fighters Local 437
Contract Period Expiration Date
3 yr. 12/31/97
2 yr. 12/31/96~
3 yr. 12/31/99
3 yr. 12/31/98
In accordance with State requirements, the City conducts full negotiations with all bargaining
units. The City's management considers its relations with employees to be satisfactory.
Under negotiation
17
GENERAL AND ECONOMIC INFORMATION
The City of Bremerton, is located on Puget Sound, approximately 15 miles west of Seattle and
35 miles north of Tacoma. The largest city in Kitsap County (the "County"), Bremerton was
incorporated in 1901 and has an estimated 1997 population of 39,510. Kitsap County, covering
393 square miles of land, also includes the following other incorporated areas: Bainbridge Island
(1997 population 18,920), Port Orchard (1997 population 6,965) and Poulsbo (1997 population
6,175).
Military Presence
The economy of the City is closely tied to the United States Navy. The Puget Sound Naval
Shipyard in Bremerton ("PSNS") is the largest Naval shipyard on the Pacific Coast and is the
only West Coast shipyard capable of working on nuclear ships. With 9,002 civilian employees,
10,219 military personnel, and 12,500 military family members, the shipyard is also the only
facility capable of decommissioning and recycling nuclear submarines which are being
disassembled in accordance with Strategic Arms Limitations Treaties. The shipyard is the largest
naval employer in the State. The economic impact of PSNS locally is $700 million per year.
The Naval Supply Center is another local military facility in the City, with about 200 employees.
The addition of two admirals to PSNS in 1997 reflects the Navy's commitment to the area.
Puget Sound is now the third largest Navy fleet concentration in the U.S. The Navy recently
announced that two additional Navy vessels will reolcate to Bremerton as their home port in
1998: The USS Mount Hood (with a crew of 370) and the USS Bridge (with a crew of 550).
Located a few miles north of the City of Bremerton is the Naval Submarine Base at Bangor.
Bangor serves as a home base for Trident-Missile submarines, the USS Parche fast attack
submarine and various support commands. The base provides employment to 5,000 civilians,
and 5,500 military personnel. Another 10,000 military family members are connected to the
base. As the only operational base of its kind on the Pacific Coast, Bangor is considered to be
very importam to the country by the Department of Defense. Annual local economic impact of
Bangor is $230 million are local residents.
Another military installation located near the City is the Naval Undersea Warfare Engineering
Station at Keyport. The station tests and maintains torpedoes, provides maintenance support for
fire control equipment and mines, and provides other engineering-related services for undersea
warfare. The Undersea Warfare Station employs approximately 1,950 civilian, 150 military and
200 military family members are local residents.
Recent base closures in other geographic regions outside of Washington have had a positive
impact on growth in the City and Kitsap County. PSNS is the new home of the Carrier Group
Three staff with 70 additional personnel and the USS Bridge AOE (10) with an additional 650
personnel.
U.S. Navy Projects in Kitsap County
Recent historical and projected spending for Navy construction and related facilities support
work in Kitsap County provided by the U.S. Navy Engineering Field. Activity Northwest office
as follows:
Kitsap County
Fiscal Year Amount (millions)
1995 $ 200.7
1996 192.3
1997 142.3
1998 127.8
1999 115.8
2000 109.3
18
Among the larger planned Navy Construction projects over the next five years in Kitsap County
are the following:
Fiscal Project Location Estimated Value Range
Year · ($Million)
1998
1999
2000
2001
2002
Utility Monitor and Control System
Child Development Center
W/S Housing Revitalization Keyport
W/S Housing Olalla/JP
Security Upgrade (SWFPAC)
Naval Hospital Addition
Motor Transfer FACMODS
U&S/(SWFPAC)
RB Magazine Modifications (SWFPAC)
Servmart
QAO Facility
Dredging Piers 3B&3D
Kitchens/Baths, Phase V (Housing)
W/S Revitalization
Community Support Facility
Oily Wastewater Collection
Hazardous Waste Storage
Pier Delta Expansion
Ammunition Wharf (SWFPAC)
Shore Power (TRF)
Waterfront Shops (TRF)
Waterfront Service Supply Bldg.
W/S Revitalization FY75 Phase II
Keyport 0-1
PSNS 1-5
Bangor 1-5
PSNS 5-10
Bangor 1-5
Bremerton 10+
Bangor 0-1
Bangor 1-5
Bangor 1-5
FISC 1-5
PSNS 5-10
PSNS 5-10
Bangor 5-10
Jackson Park 5-10
PSNS 1-5
PSNS 5-10
PSNS 5-10
PSNS 10+
Bangor 0-1
Bangor 1-5
Bangor 1-5
PSNS 1-5
Jackson Park 5-10
Other Major Employers
The Port of Bremerton (the "Port") operates the Bremerton National Airport and the 560-acre
Olympic View Industrial Park, both located approximately 10 miles southwest of the City. The
park includes 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 Bremerton National Airport,
including an aircraft parts recycling company, and an electro-mechanical products manufacturer,
which would employ up to 65 people within five years.
Bremerton National Airport is the largest airport in the County, with a 6,200-foot runway and
full instrumentation and lighting systems. The airport can handle all general aviation aircraft and
most transport and military planes. Charter passenger and air freight services are available to
SeaTac Airport, the major international airport in the Puget Sound area. The airport is currently
undergoing improvements.
Health care needs are met by several facilities in the Bremerton area including the Naval
Hospital - Bremerton with 380 civilian, 750 military and 2,500 military family members.
Harrison Memorial Hospital in Bremerton has 1,300 employees. In late 1993, Harrison
Memorial completed a $20.5 million expansion project which doubled the number of operating
rooms; expanded the laboratory and administration areas; and provided additional space for
patient education and an outpatient mental health clinic. A number of nursing homes and
reitrement complexes are also located in Bremerton.
Olympic College is a two-year public community college located in Bremerton, with an
enrollment of approximately 4,310 (full-time equivalents) and 600 employees. The college
offers associate of arts degrees in four fields, as well as adult education and non-credit courses,
and began a four-year degree program (called "2-Plus-2") in 1994. The 2-Plus-2 degree program
19 /13
is associated with the University of Washington, Tacoma branch. The Olympic College campus
will be expanding in the years ahead due to a private donation of 20 acres of land for that
purpose near Poulsbo.
New Developments
Among the projects recently completed or proposed for development in Bremerton are the
following:
· Development of the first phase of a Planned Unit Development, Sinclair Landing, will soon
begin on the downtown waterfront. A combination of public and private uses make up this
38-acre project, including: a transit center, new ferry terminal, expansion of the waterfront
park, expansion of the marina, a new terminal for passenger-only ferry service, parking,
retail use, restaurants, offices, an 80-room inn, a six-plex cinema and multi-family housing,
all connected with pedestrian corridors. The majority of the project is expected to take
three years to complete and will include private investment of over $150 million. The
transportation center will constitute the first element of the project to be constructed. A
new ferry terminal, new dock for two new passenger-only ferries and adjacent transit center
will be constructed with funding from Kitsap Transit Authority and the Washington State
Department of Transportation ("DOT"). Construction is expected to begin by the end of
1997.
· The Port of Bremerton is developing a 128-acre light industrial business complex known as
West Puget Tech Park. The first phase of the project includes the construction of a 30,000
square-foot incubator building on 2.45 acres with infrastructure. Potential employment is
85 to 100 people for this phase. The remainder of the park is intended to be developed over
a 10-year period, on a demand basis.
· A Downtown Revitalization Task Force has been formed in Bremerton as a volunteer
group of downtown business and government representatives and interested citizens. Its
purpose is to improve the appearance of and bring new business and art concerns to the
area. Projects to date include flower barrels, relocation of the Kitsap Historical Museum to
downtown Bremerton, an adopt-a-block program, local concerts and festivals.
· Pope Resources, a timber and land management company based in Poulsbo, and its
subsidiary, Olympic Resource Management, have recently obtained land within the City
that is planned for development as a 61-acre business park and 209 acres for 450 new
homes. Known as West Hills, the Project ....................
· The Kitsap County Economic Development Council (EDC) has begun a five-year program
to recruit 2,001 new primary jobs in Kitsap County, in a major effort to diversity the local
economy. It is expected that at least 2,400 new secondary jobs will result from this
campaign, and will generate more than $80 million a year to the local economy. Known as
"Business Connection 2001", this campaign is being patterned after other successful
programs undertaken in communities throughout the state. The EDC's program began in
1997 with solicitation of funds needed to attract new businesses.
· Other new developments in the City include the $3 million renovation of the historic
Admiral Theater, a new art gallery, computer game state and restaurant, all in the
downtown area.
· The Doctors Clinic, a regional health care provider, recently relocated its headquarters and
70 of its employees from various sites to an existing downtown office building.
· A permit application has been received by the City for the development of a 34-unit
Alzheimer's care facility on a 2.4-acre site.
· The City is conducting a site plan review of the proposed Auto Center Industrial Park. The
project includes clearing and grading of roadways and building pads for development of a
16.4 acre industrial park.
· The Bremerton Black Entrepreneurs Association is reviving the Roxy Theatre in downtown
Bremerton for use as a concert hall and for other live entertainment. Total cost of the
project is $3 million.
Following are economic indicators of the City and the County.
CITY OF BREMERTON AND
KITSAP COUNTY POPULATION !
City of Other Kitsap County
Year Bremerton Incorporated Unincorporated
1997 38
1996 38
1995 39
1994 35
1993 36
1992 38.
1991 37.
1990 38.
Kitsap
County
Total
600 32,060 158,740 229,400
496 31,210 155,120 224,700
610 29,915 151,075 220,600
920 28,625 148,655 213,200
380 28,160 145,460 210,000
990 27,405 139,205 205,600
040 26,639 2 132,821 196,500
142 12,913 138,676 189,731
Year
1996
1995
1994
1993
1992
1991
TAXABLE RETAIL SALES
Kitsap Coun~
$ 1,836,198,934
1,768,304,057
1,774,185,000
1,658,975,823
1,551,862,692
1,438,615,382
City of Breme~on
$ 477,467,218
451,277,414
461,026,409
422,329,475
409,553,371
390,094,567
CITY OF BREMERTON MAJOR TAXPAYERS4
Taxpayer
Puget Sound Power and Light
US West Inc.
HMI, Inc.
Michael Connolley
Viewcrest Villages Limited Partnership
Charles & Joan Haselwood
Merit Company
Overlake Management Company
Cascade Natural Gas
Homing Thiery Partnership
Business
Electric Utility
Telecommunications
Developer
Olympic College Business Svcs.
Apartments
Retail
Retail
Retail
Gas Utility
Apartments
Assessed Valuation for
1997 Collection Year
$ 26,528,942
19,510,781
9,735,140
8,022,400
7,800,000
7,010,000
6,032,900
6,000,000
5,910,993
5,765,000
1 Source: Washington State Office of Financial Management and U.S. Census.
2 The large increase is due to the annexation of the unincorporated areas of Bainbridge Island to the new City of Bainbridge
Island.
3 Source: Washington State Department of Revenue.
4 Source: Kitsap County Assessor's Office.
SEATTLE-BREMERTON FERRY TRAFFIC STATISTICS !
Year
1996
1995
1994
1993
1992
1991
Number of Vehicles
731 926
751 266
719 125
676031
667251
659827
Number of Passengers
1,863,596
1,820,433
1,719,414
1,694,234
1,856,310
1,806,744
KITSAP COUNTY AND WASHINGTON STATE
LABOR FORCE AND AVERAGE ANNUAL UNEMPLOYMENT
Resident Civilian Average Annual
Year Labor Force Unemployment
1996 93,500 6,300
1995 89,600 6,000
1994 88,600 5,300
1993 89,600 6,100
1992 88,500 5,300
1991 85,200 4,200
Total
Employment
87 200
83 600
83 300
83500
83 200
81000
Kitsap County (%) Washington (%)
6.7 6.5
6.7 6.4
6.0 6.4
6.8 7.6
6.0 7.6
4.9 6.4
KITSAP COUNTYAND WASHINGTON STATE
INCOME ESTIMATES4
Kitsap County
Per Capita Income
Year Personal Income ($000) Kitsap County Washington
1995 $ 4,529,000 $ 20,004 $ 23,709
1994 4,293,000 19,802 22,715
1993 4,108,000 19,272 22,010
1992 3,902,000 18,607 21,333
1991 3,601,000 17,971 20,168
TAX EXEMPTION
Exclusion from Gross Income
In the opinion of Bond Counsel, assuming compliance by the City with applicable requirements
of the Internal Revenue Code of 1986, as amended (the "Code"), including arbitrage
requirements under Section 148 of the Code, interest on the Bonds is excluded from gross
income of registered owners for federal income tax purposes under existing federal law and is
not an item of tax preference for purposes of the alternative minimum tax applicable to
individuals.
1 Source: Washington State Department of Transportation, Marine Division. Passengers total includes the passenger-only
ferries and vehicle ferries.
2 Includes nonagricultural wage and salary, self-employed, unpaid family workers, domestics, agricultural workers, labor
disputants.
3 Source: Washington State Department of Employment Security.
4 Source: U.S. Bureau of Economic Analysis.
: 22 /1~
Continuing Requirements
The City is required to comply with certain requirements of the Code after the date of issuance of
the Bonds in order to maintain the exclusion of the interest on the Bonds from gross income for
federal income tax purposes, including, without limitation, requirements concerning the qualified
use of Bond proceeds and the facilities financed or refinanced with Bond proceeds, limitations on
investing gross proceeds of the Bonds in higher yielding investments in certain circumstances
and the requirement to calculate and rebate to the United States certain investment earnings on
gross proceeds of the Bonds in the event that all Bond proceeds have not been spent within
certain periods prescribed by the Code. The City has covenanted in the Ordinance to comply with
those requirements, but if the City fails to comply with those requirements, interest on the Bonds
could become taxable retroactive to the date of issuance of the Bonds. Bond Counsel has not
undertaken and does not undertake to monitor the City's compliance with such requirements.
Corporate Alternative Minimum Tax
While interest on the Bonds also is not an item of 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 Bonds, received by corporations is taken into account in the
computation of adjusted current earnings for purposes of the alternative minimum tax applicable
to corporations (as defined for federal income tax purposes). Under the Code, alternative
minimum taxable income of a corporation will be increased by 75% of the excess of the
corporation's adjusted current earnings (including any tax-exempt interest) over the corporation's
alternative minimum taxable income determined without regard to such increase. A corporation's
alternative minimum taxable income, so computed, that is in excess of an exemption of $40,000,
which exemption will be reduced (but not below zero) by 25% of the amount by which the
co.~oration's alternative minimum taxable income exceeds $150,000, is then subject to a 20%
imnlmum tax.
For taxable years beginning after December 31, 1997, the corporate alternative minimum tax is
repealed for a small business corporation that had average gross receipts of less than $5 million
for the 3-year period beginning after December 31, 1994, and such a small business corporation
will continue to be exempt from the corporate alternative minimum tax so long as its average
gross receipts do not exceed $7.5 million.
Tax on Certain Passive Investment Income of S Corporations
Under Section 1375 of the Code, certain excess net passive investment income, including interest
on the Bonds, received by an S corporation (a corporation treated as a partnership for most
federal tax purposes) that has Subchapter C earnings and profits at the close of the taxable year
may be subject to federal income taxation at the highest rate applicable to corporations if more
than 25% of the gross receipts of such S corporation is passive investment income.
Foreign Branch Profits Tax
Interest on the Bonds may be subject to the foreign branch profits tax imposed by Section 884 of
the Code when the Bonds are owned by, and effectively connected with a trade or business of, a
United States branch of a foreign corporation.
CERTAIN OTHER FEDERAL TAX CONSEQUENCES
Bonds are "Qualified Tax-Exempt Obligations" for Financial Institutions
Section 265 of the Code provides that 100 percent of any interest expense incurred by banks and
other financial institutions for interest allocable to tax-exempt obligations acquired after
August 7, 1986, will be disallowed as a tax deduction. However, if the tax-exempt obligations
are obligations other than private activity bonds, are issued by a governmental unit that, together
23
//7
with all entities subordinate to it, does not reasonably anticipate issuing more than $10,000,000
of tax-exempt obligations (other than private activity bonds and other obligations not required to
be included in such calculation) in the current calendar year, and are designated by the
governmental unit as "qualified 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, together with all subordinate entities, reasonably anticipates
issuing less than $10,000,000 of tax-exempt obligations (other than private activity bonds and
other obligations not required to be included in such calculation) during the current calendar
year, and has designated the Bonds as "qualified tax-exempt obligations" for purposes of the 80
percent financial institution interest expense deduction. Therefore, only 20 percent of the interest
expense deduction of a financial institution allocable to the Bonds will be disallowed for federal
income tax purposes.
Reduction of Loss Reserve Deductions for Property & Casualty Insurance Companies
Under Section 832 of the Code, interest on the Bonds received by property and casualty
insurance companies will reduce tax deductions for loss reserves otherwise available to such
companies by an amount equal to 15 percent of tax-exempt interest received during the taxable
year.
Effect on Certain Social Security and Retirement Benefits
Section 86 of the Code requires recipients of certain Social Security and certain Railroad
Retirement benefits to take receipt or accruals of interest on the Bonds into account in
determining gross income.
Other Possible Federal Tax Consequences
Receipt of interest on the Bonds may have other federal tax consequences as to which
prospective purchasers of the Bonds may wish to consult their own tax advisors.
PRESERVATION OF TAX EXEMPTION
The City covenants, by the Bond Ordinance, that it will take all actions necessary to prevent
interest on the Bonds from being included in gross income for federal income tax purposes, and
it will neither take any action nor make or permit any use of proceeds of the Bonds or other funds
of the City treated as proceeds of the Bonds at any time during the term of the Bonds which will
cause interest on the Bonds to be included in gross income for federal income tax purposes. The
City 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.
ABSENCE OF MATERIAL LITIGATION
There is no litigation of any kind now pending or, to the knowledge of the City, threatened to
restrain or enjoin the issuance or delivery of the Bonds or in any manner questioning the
proceedings and authority under which the Bonds are issued or affecting the ability of the City to
pay the principal of or the interest on the Bonds.
CONTINUING DISCLOSURE
Basic Undertaking to Provide Annual Financial Information and Notice of Material Events
To meet the requirements of the United States Securities and Exchange Commission ("SEC")
Rule 15c2-12 (b) (5) (the "Rule"), as applicable to a participating underwriter for the Bonds, the
City will undertake (the "Undertaking") for the benefit of holders of the Bonds 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 accordance with the Rule
CNRMSIR") and to a state information depository, if any, established in the State of Washington
(the "SID") annual financial information and operating data of the type included 'in this Official
Statement as generally described below ("Annual Financial Information"): and to each NRMSIR,
or the Municipal Securities Rulemaking Board ("MSRB") and to the SID, timely notice of the
occurrence of any of the following events with respect to the Bonds, if material: (i) principal and
interest payment delinquencies; (ii) non-payment related defaults; (iii) unscheduled draws on
debt service reserves reflecting financial difficulties; (iv) unscheduled draws on credit
enhancements reflecting financial difficulties; (v) substitution of credit or liquidity providers, or
their failure to perform; (vi) adverse tax opinions or events affecting the tax-exempt status of the
Bonds; (vii) modifications to rights of holders of the Bonds; (viii) Bond calls (other than
scheduled mandatory redemption of Term Bonds); (ix) defeasances; (x) release, substitution, or
sale of property securing repayment of the Bonds; and (xi) rating changes. The City will also
provide to each NRMSIR or to the MSRB, and to the SID, timely notice of a failure by the City
to provide required annual financial information on or before the date specified below.
Type of Annual Financial Information Undertaken to be Provided
The annual financial information that the City undertakes to provide will consist of (1) a
statement of authorized, issued and outstanding general obligation debt of the City; (2) the
assessed value of property within the City subject to ad valorem taxation and (3) ad valorem tax
levy rates and amounts, and amount collected; and will be prepared in accordance with generally
accepted accounting principles promulgated by the Government Accounting Standards Board
("GASB"), as such principles may be changed from time to time by GASB or its successor; will~
not be audited, except, that if and when audited financial statements are otherwise prepared and
available to the City they will be provided; and will be provided to each NRMSIR and the SID
not later than the last day of the ninth month after the end of each fiscal year of the City
(currently, a fiscal year ending December 3 i), as such fiscal year may be changed as required or
permitted by State law, commencing with the City's fiscal year ending December 31, 1997.
The annual financial information may be provided in single or multiple documents, and may be
incorporated by reference to other documents that have been filed with each NRMSIR and the
SID, or, if the document incorporated by reference is a "final official statement" with respect to
other obligations of the City, that has been filed with the MSRB.
Amendment of Undertaking
The Undertaking is subject to amendment after the primary offering of the Bonds without the
consent of any holder of any Bond, 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 to each NRMSIR or the MSRB and the SID, of the substance (or
provide a copy) of any amendment to the Undertaking and a brief statement of the reasons for the
amendment. If the amendment changes the type of annual financial information to be provided,
the notice also will include a narrative explanation of the effect of that change on the type of
information to be provided.
Termination of Undertaking
The City's obligations under the Undertaking will terminate upon the legal defeasance of all of
the Bonds. In addition, the City's obligations under the Undertaking will terminate if those
provisions of the Rule which require the City to comply with the Undertaking become legally
inapplicable in respect of the bonds 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 termination to each NRMSIR or the MSRB and
the SID.
25
Remedy for Failure to Comply with Undertaking
If the City or any other obligated person fails to comply with the Undertaking, the City will
proceed with due diligence to cause such noncompliance to be corrected as soon as practicable
after the City learns of that failure. No failure by the City or other obligated person to comply
with the Undertaking will constitute a default in respect of the Bonds. The sole remedy of any
holder of a Bond will be to take such actions as 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.
APPROVAL OF BOND COUNSEL
Legal matters incident to the authorization, issuance and sale of Bonds by the City are subject to
the approving legal opinion of Foster Pepper & Shefelman PLLC, Bond Counsel. A copy of the
opinion of bond counsel will be printed on the Bonds. Bond counsel has reviewed this document
only to confirm that the portions of it describing the Bonds and the City's authority to issue them
conform to the Bonds and the applicable laws under which they are issued. The form of opinion
of bond counsel is included herein as Appendix A.
BOND RATING
The City has applied for a rating from Moody's Investors Service, Inc. for the Bonds. A
municipal bond rating reflects a rating agency's current assessment of a number of factors
relating to the issuer of any debt, including the likelihood of repayment of such debt, the
perceived quality of management and administration of the entity, the nature and relative health
of the local economy in which the issuer exists and the overall financial condition and
operational controls which exist for the issuer. The existence of a bond rating does not imply a
recommendation by a rating agency to purchase, sell or hold any such security, inasmuch as it
does not take into account a number of subjective variables, including the market price of any
such security or suitability of such security for any particular investor.
A credit rating is based on current information furnished by the issuer or obtained by a rating
agency from sources which it considers to be reliable. Moody's Investors Service does not
perform an audit in connection with any credit rating it may assign and may, on occasion, rely on
unaudited financial information. A bond rating may be changed, suspended or withdrawn as a
result of changes in, or unavailability of, such information, or for other circumstances.
CONFLICTS OF INTEREST
Some or all of the fees of the Underwriter and bond counsel are contingent upon the issuance and
sale of the Bonds. None of the councilmembers or other officers of the City have interests in the
issuance of the Bonds that are prohibited by applicable law.
UNDERWRITING
The Underwriter has agreed, subject to certain conditions, to purchase all of the Bonds, if any are
purchased, at a price of % of the par value of the Bonds, plus accrued interest from
the dated date to the settlement date. The Bonds will be offered at an average price of %
of the par value of the Bonds which results in an underwriting spread of . After the
initial public offering, the public offering prices may be varied from time to time.
26
/3-0
CONCLUDING STATEMENT
All estimates, assumptions, statistical information and other statements contained herein, while
taken from sources considered reliable, are not guaranteed by the City or the Underwriter. So far
as any statement herein includes matters of opinion, or estimates of future expenses and income,
whether or not expressly so stated, they are intended merely as such and not as representations of
fact.
The information contained herein should not be construed as representing all conditions affecting
the City or the Bonds. Additional information may be obtained directly from the City or the
Underwriter.
The foregoing statements relating to the Ordinance and other documents are in all respects
subject to and qualified in their entirety by provisions of such documents.
This Official Statement, starting with the cover page and all subsequent pages, including any
appendices, comprise the entire Official Statement, which has been approved by the City. The
City has represented to the Underwriter that the portions of this Official Statement directly
pertaining to the City neither contain any misrepresentation of material fact nor omit any material
fact necessary to understand the financial, economic or legal nature of the City or any
information presented herein.
APPENDIX A
FORM OF LEGAL OPINION
[FORM OF APPROVING LEGAL OPINION]
City of Bremerton, Washington
City of Bremerton, Washington, $
Obligation Refunding Bonds, 1997
Unlimited Tax General
We have served as bond counsel to the City of Bremerton, Washington (the "City"),
in connection with the issuance of the above-referenced bonds (the "Bonds"), have examined
a certified transcript of proceedings relating to the Bonds and have examined an executed and
authenticated Bond or a facsimile thereof.
The Bonds are issued pursuant to Ordinance No. __ of the City (the "Bond
Ordinance") for the purpose of providing the funds with which to pay the cost of advance
refunding the callable portion of the City's outstanding Unlimited Tax General Obligation and
Refunding Bonds, 1991, and to pay the administrative costs of such refunding and the costs
of issuance of the Bonds, all as set forth in the Bond Ordinance, and under and in accordance
with the Constitution and laws of the State of Washington and ordinances of the City.
The Bonds are fully registered; are in the denomination of $5,000 or any integral
multiple thereof within a single maturity; are numbered separately; are dated November 1,
1997; and bear interest at the rates set forth below, payable semiannually on each February 1
and August 1, commencing February 1, 1998, to the maturity of the Bonds. The Bonds are
payable at the principal office of either of the fiscal agencies of the State of Washington
(collectively, the "Bond Registrar"). The Bonds mature on February 1 in years and amounts
and bear interest at the rates per annum as follows:
Maturity Interest
Dates Amounts Rates
1998
1999
2000
2001
2002
2003
2004
2005
2006
030'/099.01
City of Bremerton, Washington
[Date]
Page 2
The Bonds are issued without the right or option of the City to redeem the Bonds
prior to their stated maturity dates.
We have not been engaged to review, have not reviewed and thus express no opinion
concerning the completeness or accuracy of any official statement, offering circular or other
sales or disclosure material relating to the issuance of the Bonds or otherwise used in
connection with the Bonds.
Under the Internal Revenue Code of 1986, as amended (the "Code"), issuers of
tax-exempt obligations are required to calculate and rebate to the United States certain
investment earnings on gross proceeds of those obligations in the event that all gross
proceeds have not been spent within certain periods prescribed by the Code. There is an
exception to this rebate requirement available to a governmental unit with general taxing
powers in connection with the issuance of obligations other than "private activity bonds" as
defined in the Code, if the governmental unit, together with all subordinate governmental
units, does not reasonably anticipate issuing more than $5,000,000 of tax-exempt obligations
(other than private activity bonds and other obligations not required to be included in such
calculation) during the calendar year in which the obligations are issued. The City has
certified in the Bond Ordinance that it is an issuer which qualifies for this arbitrage rebate
exception in connection with the issuance of the Bonds.
Under the Code, the City is required to comply with certain requirements after the
date of issuance of the Bonds in order to maintain the exclusion of the interest on the Bonds
from gross income for federal income tax purposes, including, without limitation,
requirements concerning the qualified use of Bond proceeds and the facilities financed or
refinanced with Bond proceeds. The City has covenanted in the Bond Ordinance to comply
with those requirements, but if the City fails to comply with those requirements, interest on
the Bonds could become taxable retroactive to the date of issuance of the Bonds. We have
not undertaken and do not undertake to monitor the City's compliance with such
requirements.
As of the date of initial delivery of the Bonds to the purchaser thereof and full
payment therefor, it is our opinion that:
1. The City is a duly organized and legally existing first class city under the laws
of the State of Washington;
2. The Bonds are issued in full compliance with the provisions of the
Constitution and laws of the State of Washington and the ordinances of the City relating
thereto;
3. The Bonds constitute valid general obligations of the City payable from annual
ad valorem taxes to be levied without limitation as to rate or amount on all of the taxable
0307099.01
City of Bremerton, Washington
[Date]
Page 3
property within the City, except only to the extent that enforcement of payment may be
limited by bankruptcy, insolvency or other laws affecting creditors' rights and by the
application of equitable principles and the exercise of judicial discretion in appropriate cases;
and
4. Assuming compliance by the City after the date of issuance of the Bonds with
applicable requirements of the Code, including arbitrage requirements, under existing federal
law the interest on the Bonds is excluded from gross income of the registered owners for
federal income tax purposes and is not an item of tax preference for purposes of the
alternative minimum tax applicable to individuals; however, while interest on the Bonds also
is not an item of tax preference for purposes of the alternative minimum tax applicable to
corporations, interest on the Bonds received by corporations is to be taken into account in
the computation of adjusted current earnings for purposes of the alternative minimum tax
applicable to corporations, interest on the Bonds received by certain S corporations may be
subject to tax, and interest on the Bonds received by foreign corporations with United States
branches may be subject to a foreign branch profits tax. We express no opinion regarding
any other federal tax consequences of receipt of interest on the Bonds.
We bring to your attention the fact that the foregoing opinions are expressions of our
professional judgment on the matters expressly addressed and do not constitute guarantees
of result.
Respectfully submitted,
FOSTER PEPPER & SHEFELMAN PLLC
0307099.01
AGENDA BILL
BREMERTON CITY COUNCIL
1. SUBJECT:
Ordinance establishing area restrictions
for persons arrested or convicted of' prostitution
FOR AGENDA OF: November 5, 1997
ORIGINATING DEPT: Legal
ORIGINATOR: I. Sievers, City Attorne~
DATE SUBMITTED: October 21, 1997
2. t~..~ARANCESI ,5~mment on back if necessary)
,Police Chief
COUNCIL C OI~I~IITTEES
3. EXHIBITS:
Proposed Ordinance tqt~. q~,oq.
ENDORSEMENT'~aV'[NFORMATION [] APPROVED BY COUNCIL PRESIDENT FOR SUBMITTAL:
v O ClL. iO T _.
4. SUMMARY STATEMENT AND REQUIREMENT FOR COUNCIL ACTION:
Several jurisdictions have found corm orders limiting access to high risk areas tbr prostitution imposed on those arrested
or convicted of prostitution or prostitution-related crimes have proved a successful tool in combating this criminal
activity'. The proposed ordinance establishes such orders for those high risk areas in Bremerton characterized by a
patlem of arrest for prostitution offenses.
RECOMMENDATION:
Approve OrdinanceOde0~on first reading; pass on second reading..
9. RESPONSIBLE OFFICIAL:
ENFORCEMENT OFFICIAL:
EXPIRATION DATE:
REVIEW DATE:
10. NOTICE OF ACTION
PULLED [] TABLED [] APPROVED [] DISAPPROVED [] AMENDED 11 DATE:
COUNq?IL DIRECTIVE:
11. AGENDA BILL NO.:
q7-;236
2. O.,EARANCE COMMENTS:
$. IMPACT OF NON-PASSAGE:
Simplifies enforcement against repeat offenders.
6. IMPACT ON STAFFING, BUDGETS, FACILITIES, EQUIPMENT OR OTHER RESOURCES:
None
7. RESEARCH SOURCES:
/2.7
OmrN CE NO. 4to0q
AN ORDINANCE relating to Prostitution, adopting anti-prostitution emphasis areas for
inclusion in conditions of release or conditions of probation for those persons charged or
convicted of prostitution, and amending Chapter 9.24 of the Bremerton Municipal Code.
WHEREAS, the City of Bremerton City Council has heard testimony from the City's
police officers concerning the scope and magnitude of prostitution activity in those areas of the
City of Bremerton set forth in this ordinance, and finds that the frequency of prostitution activities
in those areas constitute a high risk for prostitution in the future and have become a focal poim
for those participating in prostitution activities; now, therefore,
TIlE CITY OF BREMERTON DOES IIEREBY ORDAI}q:
Section 1. New Section. A new section shall be added to Chapter 9.24 of the Bremerton
Municipal Code to read as follows:
9.24.072 Stay Out of Areas of Prostitution Orders.
(a) Stay Out of Areas of Prostitution orders, hereinafter designated as SOAP orders, may
be issued by the Bremerton Municipal Court to anyone charged with any offense defined in this
chapter as a condition of pre-trial release.
(b) SOAP orders may be issued by the Bremerton Municipal court to anyone convicted of
any offense defined in this chapter.
(c) SOAP orders shall order the person named in the order to stay out of the following
described areas of the City designated to be anti-prostitution emphasis areas in order to assure
elimination of all prostitution and prostitution-related activity within these areas:
(1) The entire area extending from the 100 block to the 900 block of North Callow
Avenue, and one block east and west of this area of North Callow Avenue; and
(2) The entire area extending from the 800 block to the 1700 block of 6th Street, and one
block north and south of this area of 6th Street; and
SOAP2.ORD - Disk 2 - 10/21/97
(3) The entire area extending from the 600 block to the 1100 block of Park Avenue, and
one block east and west of this area of Park Avenue including Evergreen Park; and
(4) The entire area extending from the 600 block to the 1100 block of Warren Avenue,
and one block east and west of this area of Warren Avenue.
(5) Any other area found by the Judge of the Municipal Court to warrant designation as
an anti-prostitution emphasis area when specifically set forth and identified in a court order
naming a particular defendant.
Section 2. New Section. A new section shall be added to Chapter 9.24 of the Bremerton
Municipal Code to read as follows:
9.24.074 Violation of Condition of Release or Probation.
The presence of any person within an anti-prostitution emphasis area in violation of court-
imposed conditions of release or conditions of suspension or deferral of any sentence shall
constitute a separate crime hereby designated a gross misdemeanor and any such person may be
apprehended and arrested without the necessity for any warrant or additional court order. Upon
conviction, any person so violating the conditions of release or conditions of suspension or
deferral shall be punished by imprisonment in jail for a maximum term fixed by the court of not
more than one (1) year, or by a fine in an amount fixed by the court of not more than Five
Thousand Dollars ($5,000.00), or by both such imprisonment and fine.
Section 3. Effective Date. This ordinance shall take effect ten (10) days from passage
and publication.
$OAP2. ORD - Di~k 2 - 10/21/97
2
Section 4. Expiration Date. Section 1 of this Ordinance shall expire on December 31,
1998.
APPROVED by the City Council of the City of Bremerton this
day of
,1997.
PASSED by the City Council o£the City ofBremenonthis
1997.
day of
DAVID D. FARR, Council President
APPROVED this ~ day of
,1997.
LYNN HORTON, Mayor
ATTEST:
KATHLEEN McCLUSKEY, City Clerk
SOAP2.ORD - Di~k 2 - 10F21/97
AGENDA BILL
BREMERTON CITY COUNCIL
~ ORDINANCE NO. ~( 3.-
REDUCING THE B & O TAX ON GARBAGE AND
REFUSE BUSINESS
FOR AGENDA OF: Nov. 5~ 1997
ORIGINATING DEPT: Treasurer
ORIGINATOR: R. Hanna
DATE SUBMITTED: Oct. 6~ 1997
2. CLEARANCES Comment of back if necessary)
City Atto~
Fiscal & Budget Comm. ~
ENDORSEMENT8 .~'" '., ~/~zNF~R~IATION
3. EXHIBITS:
Proposed Ordinance
APPROVED BY COUNCIL PRESIDENT FOR SUBMIT
COUNCIL PRESIDENT ~_.~~
4. SUMMARY STATEMENT AND REQUIREMENT FOR COUNCIL ACTION:
This ordinance will continue the process begun in January of 1995 of gradually reducing the B & O Tax on garbage
and refuse businesses within the City to a level consistent with utility tax rates. The intention is to reduce the tax rate
by one percent each year.
8. RECOMMENDATION:
Motion to approve on first reading the Ordinance reducing B & O tax on refuse businesses.
Motion to pass on second reading Ordinance No. ~(g I ;;N-- reducing B & O tax on refuse businesses
9. RESPONSIBLE OFFICIAL: Dir Admin. Ser.
ENFORCEMENT OFFICIAL: Mayor
EXPIRATION DATE: N/A
REVIEW DATE: November 1998
PULLED
COUNCIL DIRECTIVE:
TABLED
10. NOTICE OF ACTION
APPROVED
DISAPPROVED
11. :NDA BILL
AMENDED
2. CLEARANCE COMMENTS:
5. IMPACT ON NON-PASSAGE;
Continuation of the current tax rate.
6. IMPACT ON STAFFING. BUDGETS. FACILITIES. EQUIPMENT OR OTHER RESOURCES:
Included in the Preliminary 1998 Budget. This change in tax rate reduces revenue by $45,000 from the current rate.
7. RESEARCH SOURCES:
Ordinance No. 4576.
ORDINANCE
AN ORDINANCE relating to occupation tax for the garbage/refuse
amending Chapter 5.02 of the Bremerton Municipal Code.
THE CITY OF BREMERTON DOES HEREBY ORDAIN:
business, and
Section 1. Amendment. Section 5.02.070 of the Bremerton Municipal Code is amended to read as
follows:
5.02.070 OCCUPATION TAX - RATES - WHO MUST PAY - UTILITIES. There is hereby levied upon
and there shall be collected from every person as hereinafter provided for the act or privilege of engaging in
business activities within the City, whether his office or place of business be within and/or without the City, an
occupation tax, sometimes herein referred to as the "tax", in amounts to be determined by application of the
rates given against the value of products, including byproducts, gross proceeds of sales or gross income of the
business, as the case may be, as follows:
(p) Upon every person, firm, or corporation engaged in the business of collecting garbage, refuse,
hazardous materials or other waste within the corporate limits cf the City an annual tax of sew~Weefl ~
percent (-1-7~) ~ of the total gross income rendered within the City, effective January 1, -t99-7 ~.
Section 2. Effective Date. This ordinance shall become effective ten (10) days from passage and
publication.
APPROVED by the City Council of the City of Bremerton this ~ day of
PASSED by the City Council of the City of Bremerton this ~ day of
,1997.
,1997.
APPROVED this ~ day of
DAVID FARR, Council President
,1997.
ATTEST:
LYNN HORTON, Mayor
KATHLEEN McCLUSKEY, City Clerk
/33
AGENDA BILL
BREMERTON CITY COUNCIL
ORD,NANCE NO.
Levying Property Taxes for Collection in 1998
FOR AGENDA OF: Nov. 5~ 1997
ORIGINATING DEPT: Treasurer
ORIGINATOR: R. Hanna
DATE SUBMITTED: Oct. 7, 1997
Council F &B
ENDORSEMENTS ~' INFORMATION
CLEARANCES Comment of back if necessary)
3. EXHIBITS:
Proposed Ordinance /~}o. ~(~ { 3
Schedule of 1997 and 1998 Levies
Memo to Mayor and Council
APPROVED BY COUNCIL PRESIDENT FOR SUBMITTAL:
COUNCIL PRESIDENT /~~ ~/~.4~,.~7c~
4. SUMMARY STATEMENT AND REQUIREMENT FOR COUNCIL ACTION;
The City's property taxes are levied on an annual basis through passage of an Ordinance. The Proposed ordinance
will enact a general property tax levy at the Statutory rate limit and special levies for Emergency Medical Services and
Bond Redemption at rates previously authorized by the voters. The text of the Ordinance includes language
recommended by the State Dept. of Revenue in anticipation of voter approval of Referendum 47.
8. RECOMMENDATION:
Motion tO approve, on first reading, Ordinance No.
Motion to pass, on second reading, Ordinance
levying taxes for collection in 1998.
levying taxes for collection in 1998.
9. RESPONSIBLE OFFICIAL:
ENFORCEMENT OFFICIAL:
EXPIRATION DATE:
REVIEW DATE:
Treasurer
Mayor
12/31/98
N~,
PULLED TABLED
COUNCIL DIRECTIVE:
10. NOTICE OF ACTION
APPROVED DISAPPROVED
AMENDED
11. AGENDA BILL NO: ~ 7 '"'¢:~3 ~
2. CLEARANCE COMMENTS:
5. IMPACT ON NON-PASSAGE:
The City will not levy property taxes in 1998 and will forfeit over $4 million of revenue.
6. IMPACT ON STAFFING. BUDGETS. FACILITIES. EQUIPMENT OR OTHER RESOURCES:
Included in the City's 1998 Preliminary Budget.
7. RESEARCH SOURCES;
Title 84 RCW.
ORDINANCE NO.
AN ORDINANCE of the City of Bremerton levying Municipal
Taxes against all the taxable property within the City limits of
Bremerton for the year 1997 and approving the assessment roll
made by the Assessor of Kitsap County, therefore to be collected in
the year 1998.
WHEREAS the City Council of the City of Bremerton has met and considered its budget
for the calendar year 1998; and
WHEREAS the City Council, in the course of considering the budget for 1998 has
reviewed all sources of revenue and examined all anticipated expenses and obligations; and
WHEREAS the City Council has determined that, due to ongoing financial needs the City
Council finds that there is a substantial need to increase the regular property tax levy rate above
the rate of inflation;
THE CITY OF BREMERTON DOES HEREBY ORDAIN:
Section 1. The limit factor for the regular levy for the calendar year 1998 shall be 106%
of the highest amount of regular property taxes that could have been lawfully levied in this taxing
district in any year since 1985.
Section 2. A tax on the total valuation of the taxable property of the City of Bremerton
assessed at the rate of $4.0685 per one thousand dollars of assessed value, to generate estimated
tax revenue of $5,414,897 be, and the same is hereby levied against the taxable property located
within the corporate limits of the City of Bremerton, for municipal purposes for the year 1997, to
be collected in the year 1998, and the same to be carried on the tax rolls and collected by the
Treasurer of Kitsap County.
Fund
General (includes
Fire Pension)
Emergency Medical
UTGO Bond
Estimated Levy in Dollars
Assessed Per Assessed
Amount Valuation Thousand
$4,459,278 $1,330,929,000 $3.3505
665,465 $1,330,929,000 .5000
290,155 $1,330,929,000 .2180
$5,414,897 $4.0685
However, if the Emergency Medical ballot measure submitted to the voters in the
November 4, 1997 election should fail to be approved, then the Emergency Medical levy above
shall be at the rate of $.25 per $1,000 of assessed value.
Section 3. The assessment roll, as made by the County Assessor of Kitsap County,
Washington and reviewed by the County Commissioners of said county, assessing property value
as a basis for taxes for the year 1997, to be collected in the year 1998, in which said roll the
taxable property in the City of Bremerton has been preliminarily assessed in the sum of
$1,330,929,000 be and the said assessment roll is hereby approved as the assessment roll for the
City of Bremerton. This Levy shall be modified, as needed, upon receipt of this final assessment
roll from the County so as to comply with the limitation imposed by RCW 84.55.010.
APPROVED by the City Council on the first reading this
, 1997.
day of
PASSED by the City Council of the City of Bremerton on second reading this
day of ,1997.
DAVID FARR, Council President
APPROVED this day of .1997.
LYNN HORTON, Mayor
ATTEST:
KATHLEEN L. McCLUSKEY, City Clerk
/27
CITY OF BREMERTON
COMPARISON OF PROPERTY TAX LEVIES
1997 VS 1998
ASSESSED VALUATION:
REGULAR
BOND
TAX RATE:
($$/1,000)
O&M
EMS
FIRE BOND
TOTAL
TAX REVENUE:
O&M
EMS
FIRE BOND
TOTAL
1997 1998 % CHANGE
1,299,548,011 1,330,929,000 2.41%
1,259,474,122
3.3469 3.3505 0.11%
0.2500 0.5000 100.00%
0.2153 0.2180 1.26%
3.8122 4.0685 6.72%
4,349,460 4,459,278 2.52%
324,888 665,465 104.83%
271.062 290.155 7.04%
4,945,410 5,414,897 9.49%
OFFICE OF TH~ CITY TREASURER
239 4th Street * Bremerton, %9, 9~337 · (360} 47g-5210 · FAX (360) 4~-5200
October 7, 1997
To: Mayor Horton and City Council Members
From: Rich Hanna, City Treasurer
Re: 1998 Property Tax Levy
Attached are the Agenda Bill and proposed Ordinance for levying
property taxes for collection in 1998. As stated in Section 2 of
the Ordinance, the levy figures are based on the County Assessor's
preliminary estimate of the City's valuation. As the Assessor
produces the final assessment figures, the numbers in our Ordinance
will be modified accordingly. Usually there is a minor revision
upward in the assessed valuation which results in slightly lower
levy rates and slightly higher property tax revenue.
The City's property tax levy actually consists of three different
components, the method for setting the levy is slightly different
for each of these components:
The general levy is by far the largest component of the City's
levy. It is used to help finance the operations of the City's
General Fund and is levied as an exercise of the statutory
authority of the City Council. The amount of this levy is
limited by two different statutes; RCW 84.52.043 limits the
City to a maximum levy rate of $3.375 per thousand, RCW
84.55.010 further limits the City's property tax revenue to a
maximum of 106% of the highest of the preceding three years
plus the amounts resulting from new construction and
annexations. Our Ordinance is worded so as to levy taxes at
the rate permitted by the 106% rule. Our Ordinance includes
languange necessary to comply with the requirements of
Referendum 47 in anticipation of its passage in the upcoming
election. However, the maximum levy rate will be the
operative limitation on this years levy.
· Celebrating 50 'x%ars of Freedom ·
The Emergency Medical levy is set pursuant to excess levy
authority granted by the voters. A levy rate of $.25 per
$1,000 was approved in 1992 and runs through next year. If
in the November election the voters approve a levy rate of
$.50 per $1,000 the Ordinance will go forward as written.
Should the measure fail, we will continue to levy the
previously authorized amount.
The Fire Bond levy is set pursuant to authority granted by the
voters in 1978 and 1990 authorizing bond issues in 1979 and
1991 respectively. The annual levy is set to match the City's
debt service obligation on those bond issues for the year.
AGENDA BILL
BREMERTON CITY COUNCIL
1. SUBJECT: Public Hearing
Resolution #~~.~, regarding recovery of fees for
the abatement of the property located at 1018 Burwell
Street, Bremerton.
FOR AGENDA OF: November 12. 1997
ORIGINAThNG DEPT.: Buildine Dept.
ORIGINATOR: Judy Johnson )q0-~
DATE SUBMITTED:
2. CLEARANCES: (Comment on back if
necessary)
City Attorney'~~
MAYOR
3. EXttlBITS:
1. Resolution # o2 ~o 303,.
2. Clerk Report
APPROVED BY COUNCIL PRESIDENT FO!g SUBMITTAzL:
4. SUMMARY STATEMENT AND REQUIREMENT FOR COUNCIL ACTION:
On 9/5/97, the City abated and vacated the building on the property, located at 1018 Bur, veil
Street, after it was determined that the building was unsafe. The abatement order required that the
building be secured to prevent entry by 9/8/97. On 9/10/97, the City secured the building after the owner,
Betty Mahan, failed to do so as ordered by the building official. The cost incurred by the City. for this
action totaled $1,258.86. Council must now decide if the fees are just and reasonable and how they
should be collected.
It is recommended that Council, by Resolution ~,~{o~x., , order that the fees incurred for
securing the building located at 1018 Burwell Street be collected as reasonable abatement costs and
become a lien against the property.
.. 9. RESPONSIBLE OFFICIAL: Judy Johnson
ENFORCEMENT OFFICIAL: Judy Johnson
', EXPIRATION DATE: N/A
REVIEW DATE: N/A
10. NOTICE OF ACTION
PULLED TABLED
COUNCIL DIRECTIVE:
APPROVED
DISAPPROVED At~IENDED
DATE:
2. CLEARANCE COMMENTS:
w
IMPACT OF NON-PASSAGE:
The City would forfeit the costs incurred for this action.
IMPACT ON STAFFING. BUDGETS. FACILITIES. EQUIPMENT OR OTHER RESOURCES:
The City's revolving abatement fund would suffer the deficit of not collecting these funds.
RESEARCH SOURCES:
N/A
RESOLUTION
A RESOLUTION reviewing charges for the securing the building on the
property located at 1018 Burwell and determining means of collection.
WFEEREAS, the City of Bremerton incurred costs for securing the building located at 1018 Burwell
Street, and
WHEREAS, the Uniform Code for the Abatement of Dangerous Buildings, as adopted by the Bremerton
Municipal Cc;de, allows the City to recoup these costs either by personal judgment against the property owner or
as a lien against the property; and
WHEREAS, the City Council is charged with deterrdning whether the fees are just, and how they should
be collected; and has considered the report of charges fried by the Building Official and any protests or objection
filed; and
WHEREAS, the Building Official of the City of Bremerton recommends the fees be collected as a lien
against the property located at 1018 Burwell, now, therefore,
BE IT RESOLVED, by the City Council of the City of Bremerton:
1. That the abatement charges included in the report of the Building Official in the amount of $1258.86
for the property located at 1018 Burwell, Bremerton, attached hereto, are just and reasonable.
2. That the City of Bremerton will exercise its fight to recapture abatement fees by filing a lien against
the property.
19
PASSED, by the City Council of the City of Bremerton this
day of
DAVID FARR
Council President
CITY OF BREMERTON · 239 4th Street · Bremerton, WA 98337
Memorandum
DATE:
TO:
FROM:
RE:
CC:
October 21, 1997
Paula Johnston, Deputy City Clerk
Janet Lunceford, BDS I1_.~_...
Public Hearing for 1018 Burwell
Don Pratt
Public Works secured the building at 1018 Burwell afier the owner, Betty Mahan, failed to
do so as ordered by the building official. The costs incurred for this action totaled
$483.86, per the attached interfund transfer. In addition, administrative fees in the amount
of $775.00 will be added to this action. I have scheduled a public hearing for November
12, 1997.
· Celebrating 50 Years of ·
CiTY OF BREMERTON
INTERFUND TRANSFER
CITY DEPARTMENTS ONLY
DATE 10/7/97 TRAlq~ ~703
TO
COMI:L~ 1'~ TH/S FORM llq DUPLICATE AND R~ rLrR/q TO ACCOUNTS PAYABLE
Building Department
PWO-STREET DMSION FROM Abatemenu
DESCRIPTION
TOTAL
Charges per attached ~ummry for: September 1997
LABOR
QU PME r
~L&TEAL~S
SALES TAX
TOTAL
BLAB
$o D.50
$48.00
$122.36
$0.00
$483.86
ACCOUNT AMOUNT ACCOUNT AMOUNT
42 449. 4200 $483.86
(Sign He~)~~
(Sign Here),
EXPENDITURE DEPARTMENT SUPF. SRV1SOR
CITY OF BREMERTON
Paoe I
PWO-STREET DIVISION
0/97
Numbers
0051
OO53
3025
0583
69309
Building Department - Abatements
Description
Board up 1018 BurweH
Scott Corey
Terry Devery
'93 GMC 1-TON DLrMP
Mark A. Thompson
Kits,ap Lmbr.-CDX 3/8 shop 4x8 rough
1.00 In'
4.00 hz
6.00 hr
6.00 hr
1.00 in
Over'time Cos'ts
528.50
$114.0~3
~45.00
$171.00
5122.36
5483.86