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HomeMy WebLinkAbout01/17/96 AGENDABREMERTON CITY COUNCIL 239 4TH STREET BREMERTON, WA 98337 CITY COUNCIL AGENDA JANUARY 17~ 1996 CALL TO ORDER - 5:30 P.M. A. Pledge Of Allegiance B. Invocation CONSENT AGEND~ Items listed below have been distributed to Council members in advance for study and will be enacted by one motion. If separate discussion is desired on an item, it may be removed from the Consent Agenda and placed on the Regular Agenda at the request of a Council member. A. Minutes - December 20. 1995 #AB96-007 3. CLAIMS/CHECK REGISTERS 4. COUNCIL MEMBER REPORTS 5. MAYOR'S REPORT 6. PUBLIC RECOGNITION -- (Comments Limited to 3 Minutes) NEW BUSINESS A. Cambrian Sewer Replacement Project - Change Order #1 #AB96-008 ORDINANCES A. Ordinance #4540 (Second Reading) Correcting A Mapping Error On The Comprehensive Plan Be Ordinance #4541 (Emergency Reading) #AB96-009 ~q Authorizing The Issue Of A $1,250,000 Tax Anticipation Note, Accepting The Purchase Offer Of Seafirst Bank And Declaring An Emergency ~c%i'~ ~J~ (CONTINUED NEXT PAGE) Ordinance (First Reading) Increasing Penalty For Unauthorized Use Of Disabled Persons Parking #AB96-010 f~ ~es~~253~, Re~ardin~ Rec)Dver~'Of F~s #AB96-011 For T~e. R~mov~A Of/Garbag~ On ~he Property At 1340 ~{ay~ard Aven~e ~ ~ B. Resolution #2536, Regarding Recovery of Fees #AB96-012 ~ For The Removal Of Garbage On The Property Located At 3323 Kitsap Way 1. SUBJECT: AGENDA BILL BREMERTON CITY COUNCIL MINUTES - DECEMBER 20,. 1995 1-17-96 FOR AGEND~ OF: ORIGINATING DEPT: City Council ORIGINATOR: 3ohn Law. PresiHpnt DATE SUBMITTED: %-!1-96 2. ~: (comment on back if necessary) 3. EXHIBITS: ENDORSEMENT__ INFORMATION MAYOR APPROVED BY couNcIL PReSiDENT FOR SUBMITT~L: COUNCIL PRESIDENT ~'.-~'~ 4. S~Y STATEMENT AND REOUIREMENT FOR'COUNCIL ACTION: 8. R~COMMENDATION: 9. RESPONSIBLE OFFICIAL: ENFORCEMENT OFFICIAL: EXPIRATION DATE: REVIEW DATE: PULLED TABLED COUNCIL DIRECTIVE: 10. NOTICE OF ACTION APPROVED DISAPPROVED DATE: AMENDED 11. AGENDA'~ILL NO: TAPE #1345 UNAPPROVED DRAFT CITY COUNCIL MEETING MINUTES DECEMBER 20t 1995 #0017 #0028 The regular meeting of the City CoUncil of the City of Bremerton was called to order in the City Council Chambers, 239 4th Street, Bremerton, Washington, Wednesday, December 20, 1995, at 5:30 P.M., with Council President Sherril Huff-Menees presiding. Council members present were Bob Winters, A1 Colvin, Morrie Dawkins, Carlos Montgomery, John Law, David Farr, Richard Neville, and Lon Overson. City Clerk Kathleen McCluskey was also present The meeting opened with the Pledge of Allegiance led by Council President Huff-Menees and Invocation given by Major L. LaVergne Nickerson of the Salvation Army. CONSENT AGENDA A. Minutes - November 15, 1995 #AB95-271 M/S/C/U(Neville/Colvin) to approve the Consent Agenda as presented. CLAIMS/CHECK REGISTERS Vouchers audited and certified by the auditing officer as required by RCW 42.24.080, and those expense reimbursement claims certified as required by RCW 42.24.090, have been recorded on a listing that had been made available to the Council. M/S/C/U(Colvin/Dawkins) on December 20, 1995, the Council does approve for payment those vouchers included and further described as follows: 193516, 193517, 193535 through 193758 in the amount of $460,194.06. COUNCIL MEMBER REPORTS Mr. Winters wished everyone a Happy Holiday and a very Merry Christmas. He enjoyed the legislative meeting in Silverdale on Tuesday evening. Mr. Colvin asked the City Administration to clarify a point that was made in a recent news article in The Sun that indicated the City was issuing Building Permits out near the Wastewater Treatment Plant. It was his understanding those permits are being issued by Kitsap County. He was pleased to receive a letter from B.O.Davis, who was a black Commander of the 99th Pursuit Squadron during WWII and one of Mr. Colvin's idols. Mr. Colvin will be celebrating the holidays in California and wished everyone a Merry Christmas and Happy New Year. TAPE #1345 City Council 'Reg. Mtg. Minutes December 20, 1995 Page 2 of 23 Mr. Dawkins stated he has been pleased with the number of Christmas light displays throughout the City. Mr. Montgommry wished everyone a very Merry Christmas and a safe holiday. Mr. Law hoped everyone has a very Merry Christmas. Mr. Fart wished everyone a Merry Christmas and a Happy New Year and thanked Mr. Law for the "reindeer". Mr. Neville also thanked Mr. Law for the novelty reindeer and wished everyone a Merry Christmas and reminded everyone to pick up their Winter and Spring Activity brochure from the Bremerton Parks and Recreation Department. Mr. Overson reported he enjoyed the festivities downtown this past weekend. He particularly noted the decorated Christmas Tree in Wycoff Park and he anticipates the Festival of Music event will become an tradition in Bremerton. Mrs. Huff-Menees expressed her appreciation to John and Niva Law for their gift. She also encouraged everyone to drive by Councilman Montgomery's house to see his "Santa's Reindeer" display. And, she wished everyone a happy and safe holiday. MAYOR'S REPORT Mayor Lynn Horton wished everyone a Merry Christmas and hoped every had a safe holiday, and if they drink to please not drive. PUBLIC RECOGNITION Larry Dickerson, Bremerton resident, referenced a prior Council meeting where Councilman Carlos Montgomery made a statement regarding the fact that he only represents registered voters in his District and that no one else mattered. This statement upset him greatly and he called Mr. Montgomery personally and asked him to apologize to his constituents and to the people of the City of Bremerton, but he refused. He also asked Mr. Montgomery to maybe clarify what he meant as to compared to what he might of said, which he responded that he was preparing a statement. As of this date, Mr. Montgomery has not made a statement addressing his prior comments. He believes Mr. Montgomery's statement was unconstitutional and is a violation of his oath of office as a Council member. He was also disappointed in some of the other Council members, who were silent following Mr. Montgomery's comments. He asked that Mr. Montgomery step down as City Councilman of District #8. It also concerned him that the news media chose to let this go by without any comment, even after he contacted the City Editor. TAPE #1345 City Council 'Reg. Mtg. Minutes December 20, 1995 Page 3 of 23 Gordy Byrd was pleased to report that through the public's generosity he was able to collect 110 stuffed animals for the Kitsap Community Action Head Start Program. Ruth Reese, new downtown business owner, thanked everyone who participated in the second annual Festival Of Music. Emily Mosh&y reported on December 15 John Marcus Duwane Frazier died in a tragic hand gun accident and his family is devastated by the loss. Young Marcus was a former Bremerton High School athlete and earned a College Wrestling Scholarship. A special public donation fund has been set up, to help the family with funeral expenses, at Kitsap Community Action Program, 1201 Park Avenue, Bremerton, WA 98337; or contributions may be delivered to the Mayor's office. Checks should be made to the Marcus Frazier Fund. Information may be obtained by calling 478-0364. 7A - CONTBACT AWARD FOR HANFORD AVENUE WATERMAIN REPLACEMENT -- LYDEL CONSTRUCTION INC., ~AB95-272 Bids were opened for the Hanford Avenue Watermain Replacement Project on December 4, 1995. Seven bids for this project were received. The iow bidder is Lydel Construction, Inc. in the amount of $117,276.06, including sales tax. The Engineer's estimate prepared on completion of design for this project was $123,383.18, including sales tax. The action before the City Council is approval of a contract for construction of this project. Tim Richard, Senior Engineer, stated this project is the construction of an 8-inch watermain/Hanford Street to Wheaton Way and Bledsoe. The street has an existing 4-inch watermain and the Fire Department has requested that it be updated to 8-inch in order to provide adequate fire flows for this street as well as the surrounding neighborhood. Lydel Construction Inc., was the low bidder on the project out of seven bids received. The Engineer's estimate prepared for this project upon completion of final plans was $123,383.18. The 1996 budget includes $98,000 for construction of this project; therefore, there is a $20,000 shortfall. It is recommended that the additional funding for this project be allocated out of the Water Capital Fund and that the project from which these funds will be identified later in the year as the budget year continues is in the 36-inch watermain project. This will be the first time the City has contracted with Lydel Construction Inc.; therefore, a reference check was made with Kitsap County P.U.D., who had 12 miles of watermain installed by Lydel as well as the City of Mukilteo, who had also had recently contracted with Lydel, and both of their responses was very favorable. Public comment - none. #0697 TAPE #1345 City Council'Reg. Mtg. Minutes December 20, 1995 Page 4 of 23 Mr. Fart asked if the increased flow would be just to the fire main or will it help the ratepayers in that area with low pressure problems? Mr. Richard noted they had not received any complaints from residents in that area about low water pressure; however, it will help pressures during peak flows. Mr. Overson acknowledged the appropriate documentation to handle the transfer of funds to cover the $20,000 shortfall was not included. He questioned Council giving approval to this item knowing there are not sufficient funds in the budget and asked if there be some other vehicle to cover the funding? Mr. Richard explained a budget adjustment to the Water Capital Fund will be required to cover the cost. There are sufficient funds available in the Water Capital Fund, but it was just not designated for this specific project. Mr. Overson asked the City Clerk what kind of problem Council would be developing for itself by approving a contract where the funds are not "technically in the budget"? Kathleen McCluskey, City Clerk, stated she was not sure why the Budget Adjustment did not accompany this request; however if they follow up with the appropriate Budget Adjustment before spending funds, she saw no problem. Mr. Richard affirmed that was their intent. M/S/C/U(Overson/Neville) to approve this contract for $117,276.06 with Lydel Construction, Inc. for construction of the Hanford Avenue Watermain Replacement Project contingent upon a Budget Adjustment being processed fairly quickly, and authorize the Mayor to execute the same subject to City Administrative Policies and Procedures. 7B - CALLOW AVENUE BASIN CSO REDUCTION PROJECT CHANGE ORDER ~2 WITW PAPE & SONS CONSTRUCTIONt ~AB95-273 Construction of a 24" water main in First Street from Montgomery to Hartford is included in the 1995 & 1996 Water Capital Budgets. Staff requested a proposal from Pape & Sons Construction, Inc. for constructing the portion of this watermain from Montgomery to mid- block between Callow and Wycoff. Construction of this portion under the Callow CSO Contract would allow coordinated surface restoration at First & Montgomery, reduce impact to the Navy's First & Montgomery gate, and avoid traffic control conflicts during 1996 construction. The cost provided by Pape & Sons Construction for this work is $111,275.55. Funds for this change order will be expended from the Water Capital Budget. It is requested that this change order not be included in the administrative change order authority of $100,000 granted to the Mayor for this project by the City Council on June 14, 1995. Tim Richard, Senior Engineer, reviewed information in the summary statement and listed the following three reasons why Pape & Sons #0829 TAPE #1345 City Council Reg. Mtg. Minutes December 20, 1995 Page 5 of 23 were asked to provide a cost for the designated work: (1) they had torn up a portion of First street as a part of the Callow Avenue CSO Project, which they will need to restore (this project would tear up that same section again and in order to avoid that duplication of effort and expenditure of funds it was felt it was best to install this portion first); (2) the Navy will be locating a gate to the Shipyard at First and Montgomery and by completing this work and getting it across Callow Avenue will avoid impacting construction of the gate entrance; (3) 1996 will be a big construction year for the City with the construction of the second phase of Callow Priority I, as well as work on Kitsap Way, and getting this project across Callow Avenue at this point should avoid another traffic conflict during the 1996 construction season. Funds are budgeted in the 1996 Water Capital Fund and the price quoted by the contractor is consistent with the Engineering estimate for this work. Public comment - none. M/S/C/U(Dawkins/Farr) to approve Change Order #2 to the Callow Avenue Basin CSO Reduction Project Contract in the amount of $111,275.55 and authorize the Mayor to execute the same, subject to city Administrative Policies and Procedures. Mr. Overson complimented the Public Works group for putting this together and planning all that work at one time, which will be less intrusive to traffic later on. 7C - SINCLAIR LANDING ASSOCIATION MEMORANDUM OF UNDERSTANDING: CITY APPROVAL, #AB95-274 The Sinclair Landing Association (SLA) is the non-profit corporation formed to coordinate the financing, public discussion, and development of the public facilities necessary for the public/private re-development program: The parking garage, multi- modal transportation terminal, possible marina expansion, streets and other public spaces. The attached Memorandum of Understanding is proposed for signature by al four participating public agencies plus Fletcher Wright. The public agencies are: City of Bremerton, Kitsap Transit, Port of Bremerton and Kitsap County. The SLA Board of Directors membership listing is attached. Upon successful completion of the Memorandum of Understanding, the SLAwill contract with Fletcher Wright and the governmental parties to develop the project facilities through a series of negotiated design and construction contracts. Without the SLA, or a similarly constructed organization, the waterfront project will not have an organization capable of TAPE #1345 City Council 'Reg. Mtg. Minutes December 20, 1995 Page 6 of 23 providing the needed buffer between the public and private sectors. This buffer organization is essential to allow use of modern financial technology so that public/private partnerships can occur effectively. The following objectives are sought in public-private partnerships: 1) Coordination of the public elements with the private elements of the overall development program. 2) Financing that enjoys lower public interest rates and private- side flexibility in development and construction. 3) Collaboration among the four public agencies, the private development team and the Bremerton community (through the Board's formal and informal input, reporting and dialogue). Without the establishment of such a technically appropriate non- profit organization, the project's private partners will not be able to fulfill the concept. Mayor Lynn Horton stated the role of the Sinclair Landing Association in this process is multi-fold: (1) to work on the public involvement process, such as was done on the Gorst-Bremerton Connector project, so that people within the community will feel comfortable with the project. (2) To work with the Legislature on things such as passenger-only ferry service, as well as dealing with the public/private partner aspects at the State level. (The public/private partner initiative on the 1995 Legislative docket was a very contentious issue primarily because it talked about toll roads, etc.). What the City would like to see happen is to approach the Legislature and get their blessing for this kind of public/private partnership proposal. (3) To bring all of the entities together to talk about how each of the various components fits into the whole project. (4) Efforts to secure financing for some of the elements of the project. Non-profits entities have tax advantages over "for profit businesses". She emphasized the Statement Of Understanding binds the City for its financial contribution to see that the SLA activities are carried out and it also binds the City to come to the table to talk with all the other jurisdictions about this project. This document does not bind the City in any other financial way, does not bring the City's waterfront property into this framework nor does it involve any financial responsibility the City may or may not have with any of the rest of the project. Council has met with Ben Pollock, the City's negotiator, and reviewed the letter of intent guidelines that he will be working on in negotiating the business deal with Fletcher Wright. That letter of intent will come to Council within the next few weeks and that will be the business document for the City's waterfront property and then for its financial TAPE #1345 City Council .Reg. Mtg. Minutes December 20, 1995 Page 7 of 23 responsibility that we may or may not have with the rest of the project as well as outline what the City expects from Fletcher Wright. Mayor Horton noted the SLA Board is made up of many people from the community, who have been working a long time on trying to see downtown development happen. If they don't have a financial interest invested in this project, they certainly have a time and emotional investment. Mary McClure, Executive Director of the SLA, stated she was honored to work with the SLA Board Of Directors. It is a group of the most conservative and cautious business people and civil leaders that she has worked with in Kitsap County. This group not only has concern to be fiscally conservative, but also deeply commitment to this project working and to the City of Bremerton redeveloping and becoming an exciting, wonderful place to live. One of the important elements built into the Memorandum Of Understanding is a real example of fiscal conservancy that she described. The Board is committed, in the Memorandum of Understanding, to come back to each of the participating agencies within 30 days of its going into effect with a full budget and work plan for their review and understanding. They are then committed to come back in 180 days with at least a draft of Master Agreements, at which point each of the agencies can look further at the role of the SLA and the project. There will be quarterly reports to the participating entities and a deep commitment to responsiveness and responsiblity to all the public agencies and the business community that is so dependent on this project working. There are a number of issues that have been brought up over time, one is the role of passenger- only ferries, role of the U.S.S. Missouri and the importance of those elements in the basic feasibility of this plan. Neither of those elements are absolutely required for this project to move forward. This project was basically conceived before the U.S.S.Missouri was a star on the horizon and it is feasible without the full passenger-only service that is deeply desired to serve Bremerton. Those will be enhancements and assets, but this project has the potential to stand on its own and to work. When this project was first started with the City authorizing Fletcher Wright to work on development with the City, one of the issues she felt strongly about was the importance of public sector cooperating and justifying the trust that the private sector has placed within you. In examining public/private partnerships in other cities, it is clear that the place where they most frequently fail is on the public sector side. She did not want to see that happen on this project because it is too strong and good a project to fail in that way. Finally, all of the other jurisdictions that will be partners in this undertaking and the SLA Board are looking to the City for leadership. The other jurisdictions are responsive and supportive with several of them already signed on, but they are waiting for the city to take action. TAPE #1345 City Council Reg. Mtg. Minutes December 20, 1995 Page $ of 23 Mayor Horton noted this Memorandum Of Understanding has been before Kitsap Transit, which they approved and the Kitsap County Commissioners, who gave their approval pending the City Council's ratification of the document. Today she attended the Port Or Bremerton's board meeting where they discussed the issue and unanimously supported the concept of the SLA, but because they are a special taxing jurisdiction and by Washington State Law have special requirements, so they want to make sure there are legal grounds for their signing on to this project. The Port will take up the budgetary issue in January. She agrees with Ms. McClure that the other entities are looking to the City of Bremerton for leadership in this issue. If the City does not participate, the project will not happen and some of the other jurisdictions may choose to not be parties, but the project will move forward. She strongly urged Council to approve the proposal. Matt Ryan, Kitsap County Commissioner, quoted a line from Shakespeare "that there is time and affairs of men when the tide is running that you take it or you're forever in the shallows", and he believes this is one of those times. He sees this as a wonderful opportunity with the private sector joining in and he encouraged Council to give this serious consideration. He is also concerned that in the presentation made for obtaining the U.S.S. Missouri, they did very strongly show the waterfront development project and if it did not move forward it could hurt that effort. Kitsap County recognizes a healthy and prosperous Bremerton is good for Kitsap County and the Commissioners encourage the City to act upon this Memorandum Of Understanding. Del Knauss, Bremerton resident, posed the question if Council desired to change the Memorandum of Understanding, could they legally make those changes since the City Attorney was not present at this meeting? And, is this a legally binding document? President Huff-Menees explained the City Attorney provided Council with a memo of several pages addressing the Memorandum Of Understanding and concerns raised during a Council Study Session. Council also has available the legal Council that prepared the document and he is available to answer questions. Mr. Knauss asked if the wording in the document could be changed once it is approved by Council? President Huff-Menees stated yes, it is a working document. Mr. Knauss stated for clarification that Council would be signing the agreement and then go back and make changes after it has been in front of the public. President Huff-Menees explained changes could be made if Council identifies what it is they want addressed. Mr. Knauss asked when would the public find out if changes are made? Also, he could find no mention of "public involvement" in the subject document. He has heard or read several times that redevelopment of the downtown area is contingent on foot ferry service. He quoted from the document: "commitment of TAPE #1345 City Council .Reg. Mtg. Minutes December 20, 1995 Page 9 of 23 construction will not be continqent on increased ferry service". A few months back it was told in presentations that $75,000 would be going to the Roosevelt Field Fund; however, he did not see that stated in the document. He is hearing that part of the plan is the possibility of a new City Hall located on the waterfront. He pointed out that proposal has never been presented to the public, but he guessed that was something that could be written into the document later. Bob Gunter, Attorney with Preston, Gates and Ellis and legal Counsel to SLA, stated in terms of how the document can be adjusted, every agency has its own practice of what the attorneys have talked about doing and that is the bodies basically approving the agreement substantially in the form of the draft document. When all the agencies have acted, they will then put together one final clean draft that includes everything. He believed everyone was very close on all the legal issues in terms of putting that together and then that document will be signed by all the parties. The types of changes they have been working on currently have been referenced by the Port of Bremerton and Ian Sievers, the City's attorney, and have been relatively minor modifications. An issue was raised about public involvement, and there is reference to pubic involvement in Paragraph 4 of the Memorandum Of Understanding. One of the task of SLA is to "include representatives of all contractinq parties and such other members of the community as the board deems appropriate to serve in an advisory capacity. SLA shall also serve, if feasible, in a financing and manaqement role and shall facilitate public overview and input to the pro~ect development.,, So, that is contemplated to be one of the major roles of the organization, that of course depends on what the government agencies desire the SLA to do, but right now they are very much involved in putting that type of program together. Another feature that has been added recently at the request of one of the government parties, is to make sure the SLA comes back after 30 days when they have a better chance to talk of these issues with Fletcher Wright and provide a more detailed scope and budget for the information of the contracted parties. Earl Smith, Economic Development Council, stated he served on Flagship, Leland Group Study, Tonkin Hoyne Study and he worked with Fletcher Wright. He believes that right now the right people and the right place are the key elements to make downtown revitalization work. He finds Randy McGreal a pleasure to work with and to hear him discuss the investors that he has to leverage capital, what his company is willing to do, what he has been able to do with occupancy rates in buildings in order to get a secondary mortgage, is really a plus. Having funds available now for operations is a plus as is having Karen Schmidt and Brad Owens from Kitsap County in the right place in the State Legislature as well TAPE #1345 City Council'Reg. Mtg. Minutes December 20, 1995 Page 10 of 23 as Tom Huff on the Appropriations Committee, and Alice Tawresey in the Transportation Commission. Those individuals can help and what Sinclair Landing allows is the ability to speak with them with one voice and if that consolidated effort is lost, he believes the opportunity will be lost. The public/private partnership will share the risk and some of the liability. He offered the EDC's help, if needed. Cecil McConne11, Almira Drive, stated he could not discuss the pros and cons of the project because he was not that knowledgeable about the project and he was not sure anyone else in Bremerton knows what will finally be in place on the waterfront. He referenced the fifth WHEREAS (pg. i of the Memorandum Of Understanding), and pointed out: "the parties are committed to cooperating and to negotiating such agreements and providing such properties, services and assistance...". It concerned him that the word "and" makes it a hardcore commitment on the City's part to turn over those properties, which is further backed up by Section 14 when it refers to: "Venue and Process - In the event any party deems it necessary to institute legal action or proceedings to enforce any right or obligation under this Agreement, the parties hereto agree that any such action shall be initiated in the Superior Court of the State of Washington situated in Kitsap County." To him the words "right" and "obligation" means there is a binding contract. The entire document in itself is so ambiguous that it could be tossed out. He wanted to know the source of funding for Bremerton's contribution of $50,000 He asked if the positions on the SLA Board were permanent positions and would the City's representation be changed in the event they lose their public office position to someone else, or would they remain on the board? He referenced Paragraph 6 and pointed out Fletcher Wright can terminate any time they wish, but if Bremerton decides it does not have the money to proceed, they must get a majority of the government parties to agree that they don't have to participate in the project. He is not opposing the project persay, but rather the wording of this document that leaves too many questions unanswered. He referenced Section 7, and lent his support to its passage only, which would authorize the City's contribution of $50,000. He recommended that the document be cleaned up so that a layman could understand what it was actually saying. Beverly Woods, Executive Director Bremerton Area Chamber Of Commerce and member of the SLA Board of Directors, stated over three years ago a group of community and business people got together to start working on a vision for Bremerton. She believed it was the first time in the history of Bremerton that representatives from City Administration, Parks and Recreation Department, City Council, Department Of Community Development, Port Of Bremerton, ECD, Bremerton Main Street Association, Chamber Of TAPE #1345 City Council ~Reg. Mtg. Minutes December 20, 1995 Page 11 of 23 Commerce, downtown business owners, managers of downtown businesses and citizens at large sat down together and sought a vision for Bremerton. From that point on to today, steps and processes brought forth that vision of a revitalized waterfront area that extends way into the downtown core with a marketplace atmosphere, businesses, housing, a bustling area, an expanded marina full boats, to the south the Missouri, ~ast passenger ferries arriving at the terminal bringing both commuters and tourist from Seattle to help spend money in Bremerton. She still envisions that picture and the Chamber started out putting in a small amount of money, as did other groups, and matching grant funds were obtained that enabled the forward movement to this point. The next step is critical in putting together the public/private partnership that will take this project to a successful end. Her prior experience before coming to Bremerton offered her the opportunity to work on two projects that involved public/private partnerships. There were not as many agencies involved in those projects, which made it a little easier, but they had a vision and a community group like the SLA that was made up of a diverse group of people from their area that were concerned and they developed a revitalization project for their downtown through a public/private partnership. Through that effort, they developed a 16,000 open air amphitheater that with private monies also helped build a l$-hole golf course, walking paths, a wetlands area and a sailing pond. Their investments were returned many times fold. She had the pleasure of visiting that community a couple of weeks ago and enjoyed actually seeing in real life the vision they had in those early years of planning and that is her hope for Bremerton. Roy McInnls, Maple Street, asked what will make this project any different from other proposals? Can the citizens of Bremerton be guaranteed there won't be a lot of waste of funds? When the project is finalized will the citizens of Bremerton have a vote or is it something that will just go through? How many of the SLA Board are actually City citizens? Charlle Brown, East Bremerton resident, stated he also attended the Port of Bremerton meeting held today. He views this document as a contract and once the City signs it they will be obligated to proceed. He asked if all the government agencies are happy with this proposal, why is Paragraph 14 included whereby if there is a dispute it will be settled in Superior Court? What this means is that if the Port Of Bremerton decides it is too expensive to invest in this project, the other jurisdictions can take the Port to Court. He is not an attorney, but his interpretation leads him to believe Kitsap County gives up some of their rights. He questioned the meaning of "SLA may receive, hold, approve transfer of facilities"? And, as a taxpayer how does this benefit him, i.e., will it lower his property taxes, sewer charges, etc.? He urged TAPE #1345 City Council Reg. Mtg. Minutes December 20, 1995 Page 12 of 23 Council to not get rushed into signing something. The Port of Bremerton has an 8 million dollar lawsuit against them for something they did 10 years ago. Joe Mentor, Bremerton property owner, related a recent conversation he had with some people who evidently know what is going on with ~h~ SLA proj~¢~ and h~ wa~ ~hocked by what he heard. That discussion included the information that a large parking garage would be built and he asked who or how will that garage be funded? The response he received was that the vehicles parked on City streets will be forced to use the parking garage. Then he asked what will be put on top of the parking garage? The response he received was a 30,000 sq. ft. City Hall facility, which in his opinion could cost $50,000 per month, if it was rented. The discussion also addressed the development of a 80-room hotel and he asked how were they going to get a lease signed on a hotel. The response was there wouldn't be a lease, but rather a management contract so it sounds like there is a lease. He asked what else would be included and the response was three restaurants, which he then asked how will those be financed? The response to that question was they would put them together like the restaurant at the Port of Bremerton. He believes what is being talked about here is not something the City wants to move ahead with so quickly. He did not believe, under State law, that the Port of Bremerton has the authority to put a $50,000 grant into this project. He also believes there are better ways for the City to use their $50,000 than to get another planning study at a cost of $300,000. When he looks at the City of Bremerton he sees that the downtown is dead and all the revenue that came from previous facilities are no longer in Bremerton and are now in Silverdale. He was also concerned about where the revenue will come to support the City and is alarmed that the East Bremerton business corridor along Wheaton Way will lose its economic viability as well. He also believes that Bremerton/Kitsap County will not be successful in their bid to get the Missouri. What the City needs most in the downtown area is people and housing. It also concerned him that the Director of SLA will receive a salary greater than what the Mayor of Bremerton receives. He did not want to see Bremerton become a second class suburb of Silverdale...100 buildings are being built in the County for every one that is built in the City. The City has to do something to re-establish itself as a center of commerce in the County. Russ Johnson, former member of the City Council and a SLA Director, congratulated the City Council for staying on course with the upgrading of utilities, completion of necessary studies and after a number of starts figuring out collectively nothing would happen on the waterfront unless there was significant private sector investment in Bremerton. He believes the City was magnificently TAPE #1345 City Council ~Reg. Mtg. Minutes December 20, 1995 Page 13 of 23 successful in their response to the RFP whether or not Fletcher Wright was the winning team. He wasn't sure how he missed hearing about the idea of a new City Hall being built on the waterfront, but at all the meetings he has attended that had never been mentioned. One thing that has not come out to the public is this is really a private sector development with the exception of the proposed parking garage and transit facility. Such development would mean $70-80 million dollars of private sector capital coming into Bremerton and what they build, whether or not it is a condominium or Safeway Store, is frankly up to the private sector as long as it complies with the Comprehensive Planning and zoning. By getting into the Board Rooms where the big dollars are, we are in the fast lane and the City is on the cutting edge of how things will be done and there won't be any precedent for a lot of things that have to be done. Many of the issues that come up will have to be dealt with by legal counsel and luckily SLA and the Fletcher Wright group bring some of the finest legal and financial minds at the City's disposal. Many of the developments in Kitsap County are competitive within the County. The way this project is playing out, for once we are talking about King County money coming into Kitsap County via Bremerton and he believes that was why there is such wide "County" support. He is also a member of the Bremerton Parks and Recreation Commission, although he was not speaking for the board nor does he at SLA meetings, he always keeps his eye on those things and clearly all the plans he has seen at the minimum provide continued income for the Roosevelt Field Fund and provide pass through park facilities (sidewalks, grass, park benches, etc.), which is an extension of the boardwalk. When he mentions to Fletcher Wright people that he cares about those things, as does Bremerton, they are very open to that in their design. As far as all the details of the Memorandum Of Agreement, in watching the Board members what they really want to do is get a commitment and get going. The SLA Board is still in its forming stage; however, there are two drivers moving their schedules: (1) the State Legislative sessions, which starts in January; (2) private sector marketing plan that will coalesce to provide the condominiums, stores, restaurants, etc. When that comes to pass, that is when the public sector must be prepared to support them. Phil Best, Kitsap County Commissioner, stated he wanted to lend his support to this project. He was proud to be selected as a member of the SLA Board of Directors and in the 25 years he has been involved in working in Kitsap County and as an attorney in Bremerton and having met with Mr. Bremer about that long ago and help create Bremerton tomorrow as a viable entity hoping to get things together and get Bremerton working as a unit, this is the first time he has seen everything coalesce into what he thinks can pull it off and make something doable. He was surprised with the comment about Bremerton building a City Hall as part of the project TAPE #1345 City Council 'Reg. Mtg. Minutes December 20, 1995 Page 14 of 23 since he was thinking it would be a good place for the County Courthouse. We, as a County are really supporting this to be a viable enterprise and Bremerton be revitalized, but as a County they expect the City to also stand up and be a leader on this project. The governmental entities are in it together with the private sector and he believes together it can be made to work. The County will help out in any way it can, but they want to make sure it is a partnership. Bonnie McDade, SLA Board member and Director of Diversification for the EDC, suggested that if in fact we do not succeed with a project that is going to be a real showcase and catalyst for a diversified economic base in Kitsap County and primarily Bremerton, we might as well write off much of our diversification efforts because we will never get there from here. She finds it interesting that a number of people accusing the City Council of not doing anything about economic development are still encouraging Council to not do anything. Therefore, she suggested Council take that courageous step and proceed with the project. The SLA has been put together to make that public/private partnership work, keeping the cohesive, cooperative effort that is absolutely necessary to make diversification work in Bremerton and Kitsap County. She too believes the time is right, the people involved are right, the project is right and she encouraged Council to put the $50,000 where the investment is the greatest, and she does consider it an investment in all of our future. John Thomas, Bremerton resident, stated he was not totally intelligent on this project. A comment was made earlier that the SLA Board of Directors is a diverse group of people, but he did not know everyone, but those he does know look like they are the political correct people. He did not see any "blue collar" worker on the SLA Board. It was stated the EDC and Chamber Of Commerce spent their money to see this project move forward. In his opinion, they didn't spend their money, rather it was taxpayers money through the City, County, State or Federal Government. Looking at the SLA minutes, he noted Council President Huff-Menees acted as President of the SLA Board, at least for one meeting, and to him that borders on a conflict of interest situation. Dick Hayes, Director of Kitsap Transit and Transit representative on the SLA Board, stated this kind of synergy with a group of governmental agencies materially greatly expands the ability of all of them to succeed. This significantly increases the Transit System's chances of funding the kind of ferry and bus terminal that everyone has wanted for a decade or so. Certainly, with the kind of commitment and resources that Fletcher Wright brings, this is Bremerton's grand chance, in a decade, to pull off revitalization. Earlier speakers commented that this is another study and Fletcher TAPE #1345 City Council ~Reg. Mtg. Minutes December 20, 1995 Page 15 of 23 Wright is essentially another consultant. In his opinion that is almost a ludicrous injustice - Fletcher Wright is a major multi- national corporation with the resources to take on this kind of project and they have examples of such projects in the United States and other countries. His involvement since the development of the RFP for solicitation, he believes this is the chance of the decade that gets the public facilities that are needed, gets the private sector helping to get those less expensively than otherwise would be possible, and gets the private sector in a position to do a marvelous collection of things for downtown on the private side of the ledger that will being that downtown back. Mayor Lynn Horton stated she would provide answers to questioned raised as follows: (1) Comment was made that ferry service was a critical component of this project - if she made the statement that the passenger-only ferry had to be in place before this project could occur, she should probably backtrack and explain what they found when they looked at the feasibility of a hotel on the City's piece of waterfront property. That analysis said that passenger-only ferry service was needed in order to attract a hotel. This project can occur without passenger-only service, although that service will be an important part of the development and would help the entire development. Additionally, passenger-only service is a critical component for the City of Bremerton outside of this development. Bremerton is looking at hosting an additional 20,000 people and probably a large component of those will be living in the downtown core (from Smith Cove down to the waterfront), and passenger-only service will be a necessary element to service the greater community as well as this project. TAPE #1346 (2) The Roosevelt Field Replacement Fund - at this point we don't know what the "business deal" will be with Fletcher Wright, so we don't know how much money or what kind of project the City will be entering into with them. Council has reviewed the letter of intent goals and now Mr. Pollock is working on negotiating those goals with Fletcher Wright and he will come back to Council early January to discuss some of his recommendations for the kind of business deal the City wants to strike with Fletcher Wright. Therefore, when the City puts its piece of property up as part of this project, there will be a revenue stream or source of revenue that will go into the Roosevelt Field Replacement Fund. (3) The City's financial contribution to the SLA - In 1995 the City applied for a County Block Grant for this project and the City was awarded $82,000, which is the money the City will be using for this purpose. Some of that funding must go into the construction side, but some came be funneled into looking at environmental analysis and other things that comply with the grant. TAPE #1346 City Council Reg. Mtg. Minutes December 20, 1995 Page 16 of 23 (4) Positions on the SLA Board Of Directors - a question was raised relating to elected officials being seated on the board - the role on the SLA Board does not go with the job of Mayor or City President or Kitsap County Commissioner, they go with the person. If she is not in her position as Mayor a couple years from now, she will step down from the SLA Executive Board, but may ask to stay on as an Advisory Counsel. She assumed other elected officials involved would do the same, but that is up to them. A question was raised at the Port of Bremerton meeting - since this is a Bremerton development why isn't the City leading the charge instead of the SLA? She believes it boils down to something fairly simple, i.e., the City of Bremerton's function includes Police on the streets, making sure fire fighter services are available, a good water system is in place, City parks are maintained, etc.. The City's job is so vast and varied that it would be difficult to provide the staffing and concentrated effort to see that this project happens. The sole focus of the SLA is to see that this development happens and that it works with rest of the downtown so that the downtown is redeveloped. (5) People have allude to the subject document as a "study" - several years ago when she was City Council President, she met with Vice President Of Development for Corner Stone and at that time she asked him if Bremerton was ready for redevelopment. His response was the first thing you need to do is figure out what your strategy is for the downtown. If you don't have that strategy no developer will come in because they don't think you know what you want. The process used to develop this project followed that advice. First of all, the Leland Analysis was conducted to develop a strategy for the downtown, what did we want and where did we want certain development entities to come. The analysis showed that the City's piece of property wasn't the most ideal for a hotel site, so therefore they looked at the greater area to see where a hotel would fit if one was desired, as well as other desired components,i.e., housing, retail, etc.. From that point, Tonykin Hoyne was engaged to look at the site in preparation for putting out a Request For Proposals - what did we want to see specifically on our site, what kind of public amenities did we want, what kind of components did we want included in our site, etc., so all of these things have been leading up to the Requests For Proposals and ultimately setting the stage for an entity like Fletcher Wright to come into the community and do what the private sector does and that is development. (6) A question was raised about rights being given up by jurisdictions as per the Memorandum Of Understanding - again, the letter of intent will be the business deal with Fletcher Wright and provide the parameters for what the City is giving, what is expected of Fletcher Wright and at that point, if the City chooses, TAPE #1346 City Council 'Reg. Mtg. Minutes December 20, 1995 Page 17 of 23 giving authority to the SLA, which will be articulated in that document. (7) Question - what makes this project different than others considered? She believes there are a lot of things that make this project different,i.e, we have done our homework this time having gone through the visioning session to determine what is desired in the downtown; for the first time all the players needed are "at the table"; we have a favorable economic picture with lower interest rates; and a quality development team. She emphasized the tremendous talent the various members of SLAbring to this project and what they propose in their development makes sense for the City of Bremerton. It also makes sense in terms of tourism and if you couple that with the Missouri, contrary to Mr. Mentor's opinion, she believes this area has just as good a chance to get the Missouri as any other community. At this point, it is up to Congressman Dicks to wheel the political behind the scenes maneuvering that she believes will ultimately permanently homeport the Missouri in Bremerton. People in Bremerton and Kitsap County want a reason to come to Bremerton. There isn't a community like Bremerton in Kitsap County and she believes the City is evolving into an entertainment center for the County, certainly we are a business center for the County even though the retail core may be in Silverdale. She stressed we are not reinventing something on the hopes that someone from out-of-the area will come and visit Bremerton, but there are also elements for the people of Bremerton to enjoy 365 days a year and not just from May through September. (7) Question - are there any guarantees that money won't be wasted? There are no guarantees in life, but we do have a lot of people with very good expertise working on this project. She has already talked with Dan Miller, the City's project Manager, and he will be working with John Koch, City Internal Auditor, to monitor expenditure of funds. The private sector of the project will secure private financing and it is up to them to convince a banking establishment that their project is financially feasible, that they have tenants secured and leases in place. (8) Question - will the citizens have a vote on this project? The majority of this project is a private sector development and as such that portions will not be held for citizens vote and she did not imagine, at this point in time, that anything the City is involved in will involve a citizens vote. S(9) Question - how many citizens on the SLA Board are residents of Bremerton? Mayor Horton estimates that one half or more are Bremerton residents. Mayor Horton asked Mary McClure to speak to the public involvement TAPE #1346 City Council~Reg. Mtg. Minutes December 20, 1995 Page 18 of 23 issue that Mr. Knauss felt was left out of the document; and she asked Mr. Gunter to address Mr. McConnell's concerns relating to the Memorandum Of Understanding. Mary Mcclure stated two thirds of the SLA Board members are Bremerton citizens and all of them are either City citizens, downtown property owners, business owners or key executives in major downtown businesses. In relationship to the public involvement they are envisioning and planning an extensive process that has two directions: (1) information out so they have an informed dialogue with the community; (2) ways to encourage and allow people to give input. In terms of information out, they anticipate a series of brochures as well as working with the media, both print and broadcast, to make the elements of the project clear. In terms of the opportunities for getting input back, one of the issues they are currently struggling with is how to do this in a cost efficient manner. They are looking at asking each of the Council members to host their district meetings with information and create that as an opportunity for Council members and the SLA Board to talk directly with their constituents about the project. It is there hope to do that at least twice over the next several months in each area. They are also hoping to set up a questionnaire that can be handed out in many different forums where SLA Board members will meet with neighborhood groups, civic associations, organizations all over the City and County, and talk about the project and its progress. At that time, they will not only entertain questions, but also leave the questionnaire with those attending so they can fill it out. As they move further into the project and have clear understandings of the kinds of tenants and the nature of the project, they will begin to look at more specific ways to hold open houses and forums. In relationship to each of the public elements, the parking garage, multi-model terminal and marine expansion, she was sure they would be designing specific ways to present information on specific pieces of the project to the community and get their feedback. Bob Gunter stated the document is characterized as a Memorandum Of Understanding, but it is a contract. Initially, they started with the title of Memorandum Of Agreement and as the attorneys and various parties looked at it they determined that Memorandum Of Understanding is a more accurate title for this entry level commitment. There are some fixed parts to the document, such as payment of the money and the participating parties have all agreed. The less clear part is the commitment to negotiate and proceed in good faith. He stressed the "ands" in the document do make a difference, but the WHEREAS goes on to say that "...as may be permitted under existinq charters and laws;".. He emphasized probably the most important thing for Council to remember is that under the SCOPE of the Agreement paragraph 2 it states: "Continqent TAPE #1346 City Council Reg. Mtg. Minutes December 20, 1995 Page 19 of 23 on the negotiations of future aqreements, the completion of various feasibility studies and successful Project financinq ...... " He pointed out there are several additional steps that have to be in place before dirt is turned and parties are committed to do anything in particular. A question was raised about SLA's ability to receive, hold and approve transfer of facilities and properties...again, that sentence goes on to read: "consistent with applicable laws and pursuant to the terms of future aqreements amonq the parties." The commitment here is to commit money, resources and the good faith of the City to put a deal together that pencils out. If it doesn't, then there is no further commitment, but if it does the public and this Council will have the ability to look at a much more detailed agreement that will spell out what will be done and how it will be done with the City's property. This agreement has a sentence that applies specifically to Bremerton under Section 6: "The above notwithstandinq, the City in its sole discretion may commence or later terminate separat~ neqotiations to convey its proDerty identified in Exhibit A for its use in the Pro~ect." He stressed the fact that this agreement is more clear for the City than any of the other governmental entities in that they reserve their discretion and control over that negotiating process. Paragraph 11 was the Attorney's attempt to make it clear that no one is giving up anything as stated: "The approval of this Aqreement or any actions taken pursuant thereto by any governmental party is not intended nor should be construed to affect the status of said qovernment Darty as an independent municiDal entity or to limit or expand the powers and responsibilities of any qovernmental party as Drovided by law." They attempted to put constraints over what the scope of the commitment is to pay money and to cooperate, but if it looks feasible then this body will look at much more detailed agreements in the future. Mayor Horton stated Council has asked her to address an earlier comment that the City is negotiating to lease 30,000 sq. ft., of space in Sinclair Landing for a waterfront City Hall. She has had no discussions about leasing 30,000 sq. ft. City Hall. President Huff-Menees announced during the brief recess of the Council meeting, a call came in from a constituent with respect to the fact that the discussion was closed to Council and then there were some speakers after that point; and that the public did not then have the opportunity to respond to those speakers, she emphasized Council is within its right to do that; however, if there is anyone who would like to comment on the responses of the last speakers they may make comment at this time. Since no one wished to speak, she again closed the public discussion. Mr. Colvin stated he appreciates citizens asking questions. He #0702 TAPE #1346 City Council-Reg. Mtg. Minutes December 20, 1995 Page 20 of 23 asked if he understood correctly that at this time the City was only obligating itself for $50,000? It concerned him that the City's Attorney was not present at this meeting. Mayor explained if Council approves the Memorandum Of Understanding, the City is agreeing to make a $50,000 contribution to the SLA, and the source of those funds will be a Block Grant allocation. And, it will commit the City to work cooperatively with the other entities involved in the agreement to work on moving this project forward. The City has no other liability in this process, we are not putting up our land or committing other funds. Mr. Overson noted Council received a lot of criticism and comments and he feels all the questions have been answered. The purpose of the subject agreement is basically to provide a cooperative approach to continuing implementation of the sinclair Landing project. The scope of the agreement is contingent upon the negotiation of future agreements, so this is but a mini step in the process. He felt this step was relatively easy and anticipated future steps may get contentious. He is prepared to move forward on the project based on his past experience and the fact that in all of his years in this area, this is the best proposal he has ever seen. He emphasized that is not saying we might not get another one within the next 20 years if we wait, but there is no guarantee that will happen. Until he is presented a better proposal by either the critics or anyone else, he would support this project. We have a group that will keep a watch on the City to insure that the citizens' interests are preserved. He acknowledqed the City is only one of 15 members owning property in the downtown and the City's portion is significant, but a relatively small portion. By comparison if you compare what the County and other governmental agencies have put into roads, infrastructure, fire hall, stoplights, etc., into Silverdale, this City is going to have to invest in downtown. M/S/C(Overson/Dawkins) to authorize the Mayor to sign the attached Memorandum of Understanding, on behalf of the City of Bremerton. Mr. Law pointed out no one commenting on this evening said they did not want the project. The proposal from Fletcher Wright looks very good and the best he has seen in many years. What we are looking at for this proposal is to fund the feasibility study. He has had a good 30-hours of phone calls from the public and they are not saying they don't want the downtown developed nor are they saying Fletcher Wright is not the right developer, their concern is the documentation that Council is asked to approve at this time. He keeps hearing it is a working document and that changes will be made. He preferred Council passing an alternative that would approve we will fund the $50,000, we are dedicated and committed to the project, but see the results of the feasibility study. The TAPE #1346 City Council 'Reg. Mtg. Minutes December 20, 1995 Page 21 of 23 feasibility study could end up saying the best thing for this program is to have the City issue the Bonds directly. He believes the community is dedicated to having the downtown waterfront developed, and the only concern is the path between the developer and city government. Therefore, if we say we will fund it as stated in Section 7 and give the attorneys an opportunity to come back to Council after the feasibility study, the City will have contributed $50,000 to the SLA so they could do their lobbying and other items as identified. But, the City would be waiting for the results of the feasibility study to give the right "path" to follow. Therefore, he will vote no on this proposal with the hope that another motion will follow to fund the program as he suggested, but to not sign the Memorandum Of Understanding. His greatest concern about the MOU was the approval of more than one government agency for the City of Bremerton to be able to make a change or to withdraw from the project. If that was not a valid point and a part of the document, he questioned why sign it? Mr. Fart stated acting on this issue brought him the most satisfaction as a City Council member and he has also lived in Bremerton a long time and seen study after study with none succeeding. He is excited to think that he will be part of the group that facilitates getting this project off the ground. He strongly urged Council to provide a unanimous show of support and not pick it apart at the last minutes. He believes the point presented by the Kitsap County Commissioners made sense to him...this is Bremerton's waterfront and Bremerton needs to take the lead. One concern raised by a citizens was "what can this project do for me" and he felt that was a valid point. In his opinion, this project will do a lot for all the citizens of Bremerton and the entire area. He firmly believes that a city's downtown is its source of pride, and pride in the City is something that Bremerton could use a little help and it benefits everyone. Bremerton is the last waterfront community in the region with a basically undeveloped waterfront. Mr. Thomas commented earlier that there wasn't any "blue collar" workers on the SLA Board of Directors. In response to that comment, he pointed out Beverly Kincaid, Secretary/Treasurer of Kitsap County Central Labor Council represents 30 Unions and three Labor Councils. He is not a subscriber to the conspiracy theory that a group of people would come together to deliberately try to do something to drag Bremerton down even further and he recognizes nearly all of the SLA Board Of Directors by name. He emphasized none of the SLA Board members are getting paid and most of them are very busy people and from what he understands, they are committed to donate a large amount of time to help Bremerton get this project going. Again, he urged unanimous support of this proposal as presented. Mr. Dawkins stated between serving on the Parks and Recreation TAPE #1346 City Council 'Reg. Mtg. Minutes December 20, 1995 Page 22 of 23 Commission and being an elected official for the City for almost 25 years, it seems like it has taken a long time to get to this point where discussions can be held in a positive light. He added his voice of support to finally move ahead and develop the waterfront. President Huff-Menees invited anyone in the audience to attend the SLA's Board meetings, which are open to the public. She will make sure a schedule of those meetings are posted in the City Council Office so that perhaps some of the issues that were raised during this hearing in terms of the make up of the Board and the work of the Board can be directly addressed. She would take exception to any comments made with respect to the make up of the SLA Board and we are tremendously fortunate to have those individuals. If time is taken to attend a Board meeting, one will find that there are no issues ducked, the tough questions are asked and thoroughly discussed until adequate solutions are reached and there is agreement. She also disagreed with the comment that the MOU is an inferior document - it is an excellent document. It is all in the eyes of the beholder and someone could say it is ambiguous and unanswered questions, but she finds it to be one of the most specific documents of this type that she has ever seen and because the law firm that is Counsel for SLA are leaders in the State in public/private partnership issues. There has been a tremendous amount of effort put into the details of this document and selection of the people involved. She disagreed in part with some of Mr. Law's statements, although she appreciated all of the questions asked during the hearing and the answers provided, but again, she encouraged the public to attend the SLA Board meetings to become better informed. Mr. Neville commented in response to the earlier comment that no "blue collar" workers were represented on the SLA Board, he believes Bremerton's best interest is being looked after and he truly feels there is no bluer collar than his. He also believes the homework has been done on this proposal and having spent all of his life in this community he has seen various studies conducted, including the "tent" idea, but this project is one that has gotten all the players at the table at one time and going in one direction - that is for the footprint of the development of downtown Bremerton. From this footprint, we can branch out and implement other plans and studies that have taken place in the City, such as the Campus Evergreen Plan and the development of the City out into the west hills area. The entire development of the City of Bremerton starts with this one footprint and we do have all the players coming to the table and that is exactly what the MOU is doing with one voice speaking in one way for the development of downtown Bremerton. As for the protection of the City, it is specifically written in the MOU: "the City in its sole discretion may commence or later terminate separate neqotiations to convey its TApE #1346 City Council Reg. Mtg. Minutes December 20, 1995 Page 23 of 23 property identified in Exhibit A." The City is the only one that has that exclusive right protecting the City's property and everyone else is willing to put up their property in conjunction with everyone else. He is happy and pleased that the MOU is a working agreement where a step forward can be made into the future. He wholeheartedly supports this proposal. Mr. Montgomery related he moved into the City in 1990 and at that time he made a statement that within five years he believed the City of Bremerton would be turning around. What resulted was five years later he had the opportunity to hear Fletcher Wright make a presentation on this proposal. The group of people making that presentation where the most empowering that he had ever seen, which greatly impressed him. A few days ago, he attended another meeting where he was informed the MOU was riddled with holes, but after spending approximately seven hours studying the document, he has determined that was not so. He urged Council to move forward on this proposal and if the City does not go in that direction, you might as well say "last person out shut off the light". Mr. Colvin stated he did not pretend to know or understand everything he has read, but he does have confidence in the stellar group of people involved in the SLA. He will vote for this proposal because of the confidence he has in that group. He emphasized it is the citizens right to be concerned and to differ with the Council, if they feel Council is doing something wrong. Vote on Motion: In Favor: Montgomery, Dawkins, Colvin, Overson, Neville, Farr, Huff-Menees Opposed: Winters, Law Motion carried With no further business meeting adjourned at 7:52 P.M.. KATHLEEN L. McCLUSKEY, City Clerk SHERRIL HUFF-MENEES, Council President City of Bremerton KLM/SH-M/me cc: Normal Distribution File/Vault AGENDA BiLL BREMERTON CITY COUNCIL 1. SUBJECT: CAMBRIAN SEWER REPLACEMENT PROJECT - CHANGE ORDER #1 2. C~ (Cormment on back  if necessary) Di~ec~z~/~f Public--ks & Utilities 16 City r ' CounCil Fiscal & Budget Committee ENDORSEMENT ,~] INF~O~TION [ ] M YoR FOR AGENDA OF: January 17, 1996 ORIGINATING DEPT.: Public Works & Ut~_ls Witt, City Enq~~ OKIGINATOR: R. DATE SUBMITTED: January 8, 1996 3. EXHIBITS: 1. Change Order #1 PO~ Works Operatm~ ~nage~m ~%PPRO%rED BY COUNCIL PRESIDENT FOR SUBMITTA3~: COUNCIL PRESIDENT ~ 4. SUMMARY STATEMENT AND REQUIREMENT FOR COUNCIL ACTION: Change Order #1 for the Cambrian Sewer Replacement Project consists of four items. Item 1, 2, and 3 are for work proposed in Cambrian from 15th Street scunh tc mid- block between 13th & 15th Streets. Item 1 is for replacing a deteriorated 4" watermain with a 8" watermain at a cost of S36,064.25. Item 2 is for ccmpie~e stLeer reconstruction at a cost of $10,219.77. Item 3 is for construction of s drainage in accordance with the Callow Avenue Basin CSO Reduction Plan an a cost $10,535.70. Item 4 is to increase the original contracts "Bank Run G~a~e!", "6" Side Sewer", "6" Cleanout", and "Crushed Surfacing Top Course" iD 5he amount of $30,860.00. The total amount of this change order is $87,679.72. 5. RECOMMENDATION: The City Council approve Change Order #1 for Cambrian Avenue Sewer Replacement Project in the amount of $87,679.72 and authorize the Mayor to execute the same. 9. RESPONSIBLE OFFICIAL: Director Pub Wks & Util ENFORCEMENT OFFICIAL: Director Pub Wks & Util EXPIRATION DATE: REVIEW DATE: PULLED [ ] TABLED [ ] COUNCIL DIRECTIVE: 10. APPROVED [] NOTICE OF ACTION DISAPPROVED [ ] AMENDED (OVER) 2. CLEARANCE COMMENTS: 3. SUMMARY STATEMENT AND REQUIREMENT FOR COUNCIL ACTION - Continuation 5. IMPACT ON NON-PASSAGE: The deteriorated water line will not be replaced at this time requiring future repairs. Street reconstruction will not occur resulting in a shortened pavement life. Storm drainage will be ihstalled in a later phase of the Callow Avenue Bas~--. CSO Reduction projects. IMPACT ON STAFFING, BUDGETS, FACILITIES~ EQUIPMENT AND OTHER RESOURCES: StaffinG: Additional 80 hours of staff time will be required for construction inspection and management. Budget: An expenditure from the Wastewater Capital Fund of $30,860.00, the Water Capital Fund of $36,064.25, the Stormwater Capital Fund of $10,535.70, and the Street Maintenance Fund of $10,219.77. Facilities/Equipment: No impact. 7. RESEARCH SOURCES: PUBLIC WORKS AND UTILITIES 3027 Olympus Drive · Bremerton, WA 98310-4799 · (360) 478-5318 · FAX (360) 47~3-5018 CltANGE ORDER # 1 15th and CAMBRIAN AVENUE SEWER REPLACEMENT DESCRIPTION OF WORK This change order includes the following: 1) Removing the existing 4" cast iron water main, from the North side of the intersection of 15th and Cambrian and continuing South to midblock between 15th and 13th, replacing it with 8" ductile iron pipe. This work will add the following bid items with the respective prices to the Contract. ITEM DESCRIPTION UNIT QUANTITY UNIT PRICE PRICE 2 TRAFFIC CONTROL LS $2,100.00 $2;100.00 5 TRENCH BACKFILL TON 400 $10.00 $4,000.00 14 ACP CL B FOR SY 75 $10.19 $764.25 TRENCH 16 CSTC CY 50 $18.50 $925.00 19 TIE BACK BLOCKING EACH 4 $1,693.75 $6,775.00 20 8" CL 52 DI PIPE LF 450 $25.00 $11,250.00 21 8" GATE VALVE EACH 2 $700.00 $1,400.00 22 8" CROSS AND BENDS EACH 5 $750.00 $3,750.00 23 8" REDUCERS EACH 5 $250.00 $1,250.00 24 SERVICES EACH 11 $350.00 $3,850.00 TOTAL ADDITIONAL COST TO CONTRACT $36,064.25 2) The existing pavemem South of the intersection of 15th street, prior to construction, was in poor condition. During construction it was found that the road surface was a series of thin overlays and bituminous surface treatments with no crushed rock base. When the utility work concludes the Contractor shall grind the remaining asphalt, place crushed surfacing top course to a depth of 0.5', grade the rock base, and place a three inch lilt of asphalt pavement. The following current Contract items would be increased. - ,I- Celebrating 50 Years of Freedom ITEM DESCRIPTION UNIT QUANTITY UNIT PRICE PRICE 2 TRAFFIC CONTROL LS $960.00 $966,00 16 CSTC CY 175 $18.50 $~23-7.50 25 ACP CL B 3" OVERLAY SY 950 $9.12 $8~o~04-:e0 26 ASPHALT GRINDING SY 950 $2.80 $2-;669.-99- 27 GRADING/PREP SY 950 $1.90 $1,865:0~ TOTAL $17 Quantities xvhich will be reduced due to the grinding/paving procedure ITEM DESCRIPTION UNIT QUANTITY UNIT PRICE PRICE 14 ACP CL B FOR SY -227 $10.19 $(2,313.13) TRENCH 15 ACP CL B OVERLAY SY -856 $5.60 $(4,793:60) TOTAL $(7,106-_73) TOTAL ADDITIONAL COST TO CONTRACT $10,219.77 3) The Contractor shall install a storm sewer system. This work entails replacing the existing catch basins 150 feet South of the intersection of 15th Street and installing 8" _PVC between the two, installing approximately 120 LF of 12 HDPE pipe from the catch ba.~mon the East side of the street to a MH to be installed +/- 15 Northeast of MH #1 of:Xhis ' -_--- Contract. Another 15' of HDPE shall also be installed between this new storm~/IJrt and MH #1. The following Contract items will be added or increased. ITEM DESCRIPTION UNIT QUANTITY UNIT PRICE PRICE 2 TRAFFIC CONTROL LS $400.00 $400.00 4 TRENCH SAFETY 12" LF 150 $4.54 $681.00 5 BANK RUN GRAVEL TON 85 $10.00 $850.00 16 CSTC CY 20 $18.50 $370.00 28 TYPE 1 MH (FLAT TOP) EACH 1 $1,924.20 $1,924.20 29 TYPE 21 CATCH BASIN EACH 2 $900.00 $1,800.~30 30 12" HDPE LF 150 $20.95 $3,14-2.50 31 8" PVC STORM LF 50 $15.36 $768~00 32 CONNECT TO MH EACH 1 $600.00 $600.00 ADDITIONAL COST TO CONTRACT $10,535.70 4) The following item overruns occurred during the construction according to the original Contract. Overruns were caused by additional laterals and cleanouts being installed as well as poor existing material which could not be utilized for backf-fll. ITEM DESCRIPTION UNIT QUANTITY UNIT PRICE PRICE 5 BANK RUN GRAVEL TON 2453 $10.00 $24,53_0.00 10 6" PVC SIDE SEWER LF 125 $32.00 $4,000.00 11 6" CLEANOUT EACH 4 $305.00 $1,220.00 16 CSTC CY 60 $18.50 $1,11-9:00 TOTAL ADDITIONAL COST TO CONTRACT $30,.860.00 INCREASED COST TO CONTRACT $87679.72 IMPACTS TO CONTRACT: 1) The total cost of this Change Order is $87679.72. 2) The COntract time of completion shall be increased 11 days. This document shall become an amendment to the Contract and all provisions shall apply hereto. Olsen's Land Development, Inc. By: Title: Approved for the City of Bremerton By: Date: Project Manager By: Date: ' City Engineer Authorized for City of Bremerton this By:. Mayor Attest: City Clerk day of ,1995. AGENDA BILL BREMERTON CITY COUNCIL 1. SUBJECT: d)/~a//~/~'O~ f~ ~/5/-/~ FOR AGENDA OF: January 10, 1996 ~UBLIC HEARING: To consider a ComprehensiveORiGiNATiNG DEPT: DCD/Planning Plan Map correction to add an "Industrial ORIGINATOR: Park" designation to lands in the DATE SUBMITTED: D_.e. cember 29, 199 vicinity of Penderqast Park in W. Bremerton~ ~n~ ..... , ..... 2. CLEARANCES: (Use bac~sary) 3. EXHIBITS: ( //~/./ ® Staff Report City At t or ney ~.~_.2~_ ~ · Resolution Dept. of Comm. Der: ~~· Planning Commission Minutes Operations Committee: ~V~ [ ~~ 4. SUMMARY STATEMENT AND REQUIREMENT FOR COUNCIL ACTION: A 1990 Rezone for 236 acres of Pope Resources property included a combination of zones to be integrated into a Planned Unit Development (PUD). Ten percent of the area was to be "Industrial Park". The exact location would be determined later as the master plan was developed. The City's new Comprehensive Plan did not show the industrial designation. That oversight caused an inconsistency between the Plan and Zoning Maps. The proposed correction will designate approximately 25 acres "Industri~ Park (IP)" as originally intended. 8. RECOMMENDATION: The Bremerton Planning Commission conducted a public hearing on this matter and recommends City Council approval. NDTION: TO APPROVE ORDINANCE ~/j~z/~? ON 9. RESPONSIBLE OFFICIAL: Donald n. Pratt $ ~ ~ READING 03RRFLTING A ENFORCEMENT OFFICIAL: N/A M~PPING ~ ON THE EXPIRATION DATE: N/A ~SIVE PLAN. REVIEW DATE' N/A 10. NOTICE OF ACTION: PULLED,__ TABLED__ COUNCIL DIRECTIVE: APPROVED.__ DISAPPROVED DATE: AMENDED 11. AGENDA BILL NO: 8A 2. CLEARANCE COMMENTS: 5. IMPACT ON NON-PASSAGE: This is a "correction of error" proposal to make the Comprehensive Plan and Zoning Maps consistent with each other. Non-passage will continue the inconsistency problem and may weaken the effect of the zoning on the Pope property. Pope Resources is developing a master plan for this property and needs the City's assurrance that the Plan and Zoning both include the industrial component. 6. IMPACT ON STAFFING. BUDGETS, FACILITIES, EQUIPMENT OR OTHER RESOURCES: No anticipated impacts in these areas. 7. RESEARCH SOURCES: N/A ORDINANCE NO. AN ORDINANCE OF THE BREMERTON CITY COUNCIL CORRECTING A MAPPING ERROR ON THE COMPREHENSIVE PLAN WHEREAS, the City of Bremerton adopted a revised Comprehensive Plan on April 5, 1995, in compliance with the Growth Management Act of 1990; and WHEREAS, a minor mapping error was discovered in an area of West Bremerton south of Pendergast Regional Park, which overlooked a Plan and Zoning designation approved in 1990 for an "industrial park" site; and WHEREAS, this mapping error has resulted in an inconsistency between the City's Comprehensive Plan and Zoning Maps; and WHEREAS, the Bremerton Planning Commission reviewed a staff proposal to correct this error and, following a public hearing on July 18, 1995, recommended that the Comprehensive Plan Map be corrected to designate the subject site "IP, Industrial Park"; and WltEREAS, the Bremerton City Council conducted a public hearing on January 10, 1996, to accept additional public testimony and to consider the recommendation of the Planning Commission; now therefore THE CITY OF BREMERTON DOES HEREBY ORDAIN that the West Bremerton Land Use Plan map, contained in the Land Use Element of the Comprehensive Plan, be amended to add the "IP, Industrial Park" site, as delineated in attached Exhibit "A". APPROVED by the City Council of the City of Bremerton this ,1996. day of PASSED by the City Council of the City of Bremerton this , 1996. day of 'JOHN E. LAW City Council President APPROVED this day of ,1996. LYNN S. HORTON, Mayor ATTEST: KATHLEEN McCLUSKEY City Clerk Published: Effective: BREMERTON PLANNING COMMISSION DRAFT MI~ES JULY 18. 1995 REGULAR MEETING MEMBERS PRESENT: MEMBERS ABSENT: Commissioners Olsen, Boyd, Robinson, Hancock, and Dingfield Jackson, Goetze (Note: Goetze later and noted in the minutes) Stone, arrived Vice-Chairman Olsen called the meeting to order at 6:05 p.m. The roll was called and a quorum was present. Please note: Complete notes destroyed due to equipment failure. Verbatim tapes available at the City of Bremerton's Community Development office located at 286 4th Street. Chairman Goetze arrived at 6:17 p.m. and Commissioner Olsen turned the Chair over to him. PUBLIC HEARINGS: 1. LES FOWLER, Denial of Short Plat to create three lots. City Staff, Shane Jensen gave the staff report. Written and oral testimony was presented by the applicant, adjoining property owners and City staff. A motion was made by Commissioner Robinson to uphold the Director's denial of the short plat. Seconded by Commissioner Olsen. Unanimous vote in support of the motion.  2. WEST HILLS/POPERESOURCES: Comprehensive Plan Correction City Staff, Ron Hough, gave the staff report. Oral testimony was presented by David Cunningham, Pope Resources. Draft #1 August 7, 1995 .35 P.C. Minutes July 18, 1995 Commissioner Stone made a motion to recommend City Council approval of a Comprehensive Plan Amendment. The motion was seconded by Commissioner Olsen. Unanimous vote in support of the motion. FPH MANAGEMENT CONSTRUCTION, INC.: Amendment and Rezone Comprehensive Plan Shane Jensen, City Staff, gave the staff report. Oral and written testimony was presented bythe applicant and adjoining neighbors. Commissioner Stone made a motion to recommend City Council approval of a Comprehensive Plan Amendment, and also to recommend a rezoning of the subject property from "GB" to "MF". The motion was seconded by Commissioner Hancock. Unanimous vote in support of the motion. APPEAL of WILLIAM SESKO for a Cease and Desist Order issued May 16, 1995. Shane Jensen, City Staff, introduced the issue. Oral and written testimony was presented by the appellant. Commissioner Stone made a motion to uphold the City's Cease and Desist Order on the Sesko property. The motion was seconded by Commissioner Hancock. Unanimous vote in support of the motion. Chairman Goetze continued the meeting at 11:15 p.m. The meeting will be reconvened at August 1, 1995, at 4:00 p.m. at City Council Chambers. August 1, 1995 - Continuation of July 18, 1995 regular meeting: Vice-Chairman Olsen opened the meeting at 4:06 p.m.. MEMBERS PRESENT: Commissioners Boyd, Hancock and Jackson. Stone, Robinson, Draft #1 August 7, 1995 Exhibit "A" LEGAL DESCRIPTION Area to be designated "IP": The W ~,5 &the SW 1/4 of Section 21, Township 24 North, Range 1 East, W.M. The N ½ &the NW 1/4 together with that portion &the NW 1/4 of the NE 1/4 lying west of Third Street and situated in Section 28, Township 24 North, Range I East, W.M. The N 3/4 of the SE 1/4 of the NE 1/4 of the NE 1/4; the NE 1/4 of the NE 1/4 of the NE 1/4; the W ½ of the NE 1/4 of Section 29, Township 24 North, Range I East, W.M. LOCATION MAP ~sap Lake MDR West C-P OS PW. C-G:' p~= t. DR , IP Wemer Rd. LDR ~ 37 Pope Resources A Unlited Partnership 19245 Tenth Avenue Northeast P.O. Box 1780 Poulsbo, Washington 98370-0239 (360) 697-6626 (360) 697-1156 FAX January' 10, 1996 Honorable City Council Bremerton City Hall 239 Fourth Street Bremerton WA 98310 Re: Comprehensive Plan Gorrection - West Hills Dear Council Members: In 1991, Pope Resources assisted the City in gaining control of all land uses within its Bremerton watershed in order to assure long-term domestic water quality. In exchange for property we owned in the watershed, we acquired a tract of City-owned land west of Loxie Egans interchange adjoining the new Pendergast Park. Since that trade, the subject parcel has been designated and zoned for a combination of residential and industr~l uses. For several years, we have worked with City staff to install, at our expense, corresponding infrastructure and to attract prospective users for the site. However, during deliberations on your new GMA Comprehensive Plan in the Spring of 1995, the longstanding land use designations were, we believe, inadvertently modified. We respectfully request that you concur with the Planning Commission and correct the City's Comprehensive Plan after finding such action to be consistent with the goals and requirements of the Growth Management Act and regulations. David Cunningham Vice President, Land Use ph C: Donald Pratt, Director of Community Development Ron Hough, Planning Manager - AGENDA BILL BREMERTON CITY COUNCIL ORDINANCE NO. AUTHORIZING THE ISSUE OF A $1,250,000 TAX ANTICIPATION NOTE, ACCEPTING THE PURCHASE OFFER OF SEAFIRST BANY~ AND DECLARING AN EMERGENCY FOR AGENDA OF: Jan. 17, 1996 ORIGINATING DEPT: Treasurer ORIGINATOR: R. Hanna DATE SUBMITTED: Jan. 4, 1996 2. CLEARANCES: Comment of back if necessary) Dir. Admin. Ser~~~..~~ City Attorne~ Council Fiscal & Budge~.~.~ - 3. EXHIBITS: Proposed Ordinance Cash Flow Projection Note Purchase Offer (at Council meeting) ENDORSEMENTS .~' INFORMATION APPROVED BY COUNCIL PRESIDENT FOR SUBMITTA 4. SUMMARY STATEMENT AND REQUIREMENT FOR COUNCIL ACTION: As indicated in the exhibits attached, the City's General Fund will run a cash deficit for several months during the year unless some form of cash flow financing is provided. Analysis indicates that a Tax Anticipation Note is the most advantageous method of providing the necessary cash flow financing. Emergency passage of this ordinance is needed in order that the City and Seafirst can minimize their market risk in executing the note sale and thereby provide the lowest cost financing possible. 8. RECOMMENDATION: MOTION TO PASS ON AN EMERGENCY BASIS ORDINANCE NO. ~7/~-~//. 9. RESPONSIBLE OFFICIAL: Treasurer ENFORCEMENT OFFICIAL: Mayor EXPIRATION DATE: Jan. 31, 1997 REVIEW DATE: N/A PULLED COUNCIL DIRECTIVE: TABLED 10. NOTICE OFACTION APPROVED DISAPPROVED AMENDED 11. AGENDA BILL NO: ~ - 0 0 2. CLEARANCE COMMENTS: 5. IMPACT ON NON-PASSAGE: The City's General Fund will operate for much of the year with a negative cash balance which is contrary to state law. 6. IMPACT ON STAFFING. BUDGETS. FACILITIES. EQUIPMENT OR OTHER RESOURCES; Budgeted. RESEARCH SOURCES: Cash Flow Projections. Bond Counsel. Negotiations with underwriting bank. CITY OF BREMERTON, WASHINGTON ORDINANCE NO. ~ AN ORDINANCE of the City of Bremerton, Washington, authorizing the issuance of tax anticipation notes for the purpose of paying City expenses pending the receipt of general City taxes; creating a note redemption fund; providing for the sale of those notes to Seattle-First National Bank of Seattle, Washington; and, because of its urgency, providing that this ordinance shall take effect immediately. Passed January 17, 1996 This document was prepared by: Foster Pepper & Shefelman 1111 Third Avenue, Suite 3400 Seattle, Washington 98101 (206) 447-4400 CITY OF BREMERTON, WASHINGTON ORDINANCE NO. AN ORDINANCE of the City of Bremerton, Washington, authorizing the issuance of tax anticipation notes for the purpose of paying City expenses pending the receipt of general City taxes; creating a note redemption fund; providing for the sale of those notes to Seattle-First National Bank of Seattle, Washington; and, because of its urgency, providing that this ordinance shall take effect immediately. WHEREAS, the City Council'of the City of Bremerton, Washington (the "City"), finds that the periodic collections of sales, excise and general ad valorem taxes and other revenues in 1996 will not be sufficient to meet necessary City expenses as they are incurred in 1996, and that it is in the best interest of the City to contract short-term debt pursuant to chapter 39.50 RCW to pay those expenses pending receipt of taxes and other revenue collected by the City; NOW, THEREFORE, THE CITY OF BREMERTON DOES ORDAIN: Section 1. Debt Capacity. The assessed valuation of the taxable property of the City as ascertained by the last preceding assessment for City purposes for the year 1995 for tax collection in the year 1996 is $1,239,563,247 and the City as of December 31, 1995, had $10,083,210 of outstanding general indebtedness evidenced by limited tax general obligation bonds and notes and tax anticipation notes incurred within the limit of up to 1-1/2% of the value of the taxable property within the City permitted for general municipal purposes without a vote of the qualified voters therein, and unlimited tax general obligation bonds in the principal amount of $1,880,000 within the limit of up to 2-1/2% of the value of the 0219407.01 taxable property within the City for general capital purposes issued pursuant to a vote of the qualified voters of the City, and the amount of indebtedness for which the notes are herein authorized to be issued is $1,250,000. The general indebtedness to be incurred shall be within the limit of up to 1-1/2% of the value of the taxable property within the City permitted for general municipal purposes without a vote of the qualified voters therein. Section 2. Note Fund; Authorization and Description of Notes. There is created in the office of the City Treasurer a special fund called the Tax Anticipation Note Fund, 1996 (the "Note Fund"). Pending the collection of sales, excise and general ad valorem property taxes levied for collection in 1996 and other revenues anticipated to be received in 1996, the City shall issue and sell its tax anticipation notes to be designated Tax Anticipation Notes, 1996 (the "Notes"), in the principal amount of $1,250,000. The Notes shall be dated February 1, 1996; shall mature on January 31, 1997; shall be in the denomination of $50,000 or any integral multiple thereof; shall be numbered separately in the manner and with any additional designation as the Note Registrar (collectively, the fiscal agencies of the State of Washington located in Seattle, Washington, and New York, New York) deems necessary for purposes of identification; and shall bear interest at the rate of % per annum (computed on the basis of a 360-day year of twelve 30-day months), payable at maturity. If any Note is not redeemed when properly presented at its maturity, then interest shall continue to accrue at the same rate from and after maturity until that Note, with interest, is paid in full or until sufficient money for such payment in full is on deposit in the Note Fund and --2-- the Note has been called for redemption. The City Council declares and finds that the fixing of the above interest rate is in the best interests of the City. The Notes shall be general obligations of the City. The Notes shall not be subject to redemption prior to their maturity date. Section 3. Reqistration and Transfer of Notes. The Notes shall be issued only in registered form as to both principal and interest and shall be recorded on books or records maintained by the Note Registrar (the "Note Register"). The Note Register shall contain the name and mailing address of the owner of each Note and the principal amount and number of each of the Notes held by each owner. Notes surrendered to the Note Registrar may be exchanged for Notes in any authorized denomination of an equal aggregate principal amount. Notes may be transferred only if endorsed in the manner provided thereon and surrendered to the Note Registrar. Any exchange or transfer shall be without cost to the owner or transferee. The Note Registrar shall not be obligated to exchange or transfer any Note during the 15 days preceding the maturity date. Section 4. Payment of Notes. Both principal of and interest on the Bonds shall be payable in lawful money of the United States of America upon presentation and surrender of the Notes by the registered owners at either of the principal offices of the Bond Registrar at the option of the owners. Section 5. Pledoe of Taxes. The Notes shall be paid solely from the Note Fund. The City irrevocably pledges to budget and 0219407.01 levy taxes within the constitutional and statutory tax limitations provided by law without a vote of the electors of the city on all of the taxable property in the City in an amount sufficient, together with other money legally available and to be used therefor, to pay the principal of and interest on the Notes at maturity. The City further irrevocably pledges to set aside and deposit into the Note Fund from such taxes and other money on or before the maturity date of the Notes an amount sufficient to pay, both principal and interest, and redeem the Notes on their maturity date. The full faith, credit and resources of the City are pledged irrevocably for the payment of the principal of and interest on the Notes. Section 6. Form and Execution of Notes. The Notes shall be printed, typed or multicopied on good bond paper in a form consistent with the provisions of this ordinance and state law, shall be signed by the manual or facsimile signature of the City Treasurer, and shall have the seal of the City or a facsimile reproduction thereof impressed or printed thereon. Only Notes bearing a Certificate of Authentication in the following form, manually signed by the Note Registrar, shall be valid or obligatory for any purpose or entitled to the benefits of this ordinance: CERTIFICATE OF AUTHENTICATION This Note is one of the fully registered City of Bremerton, Washington, Tax Anticipation Notes, 1996, described in the Note Ordinance. 0219407.01 -4- WASHINGTON STATE FISCAL AGENCY Bond Registrar By Authorized Signer The authorized signing of a Certificate of Authentication shall be conclusive evidence that the Notes so authenticated have been duly executed, authenticated and delivered and are entitled to the benefits of this ordinance. If any officer whose facsimile signature appears on the Notes ceases to be an officer of the City authorized to sign notes before the Notes bearing his or her facsimile signature are delivered or issued by the City, those Notes nevertheless may be issued and delivered and, when issued and delivered, shall be as binding on the City as though that person had continued to be an officer of the city authorized to sign notes. Any Note also may be signed on behalf of the City by any person who, on the actual date of signing of the Note, is an officer of the City authorized to sign bonds, although he or she did not hold the required office on the date of issuance of the Notes. Section 7. Note Registrar. The Note Registrar shall keep, or cause to be kept, at its principal corporate trust office, sufficient books for the registration and transfer of the Notes, which shall be open to inspection by the City at all times. The Note Registrar is authorized, on behalf of the City, to authenticate and deliver Notes transferred or exchanged in accordance with the provisions of the Notes and this ordinance, to serve as the City's paying agent for the Notes and to carry out all of the Note Registrar's powers and duties under this ordinance and 021~7.01 -5- city Ordinance No. 3862 establishing a system of registration for the City's bonds and obligations. The Note Registrar shall be responsible for its representations contained in the Note Registrar's Certificate of Authentication on the Notes. The Note Registrar may become the owner of Notes with the same rights it would have if it were not the Note 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 Note owners. Section 8. Notes Negotiable. The Notes shall be negotiable instruments to the extent provided by RCW 62A.8-102 and 62A.8-105. Section 9. Use of Proceeds. The principal proceeds received from the sale of the Notes shall be deposited in the General Fund of the City and used solely for the purpose of paying the cash flow deficits in the City's General Fund resulting from budgeted expenditures, and any interest received from the deposit or investment of such proceeds shall be applied and used solely for such purposes or for deposit in the Note Fund. Any proceeds resulting from authorized temporary investments of money on deposit in the Note Fund or such investment proceeds of any of the taxes hereafter levied for payment of the Notes and placed in the Note Fund shall be used for the sole purpose of retiring the Notes or paying the interest thereon. Section 10. Permitted Financing of Cumulative Cash Flow Deficit. Based upon the reasonably expected amounts of sales, excise and general ad valorem property taxes and other revenues to be collected in 1996 (including investment proceeds of the Notes) ~19407.01 ~6~ and that are expected to be available to make General Fund expenditures in 1996 (computed by treating a reasonable working capital reserve in an amount not exceeding 5% of the total General Fund expenditures in the prior fiscal year as not being available to make those expenditures), the City Council finds that the principal amount of the Notes does not exceed the maximum anticipated "cumulative cash flow deficit" (as defined by Section 148 of the Internal Revenue Code of 1986, as amended (the "Code"), and applicable Treasury Regulations thereunder) expected to occur in the City's General Fund during 1996 and that is to be financed with proceeds of the Notes. Section 11. Preservation of Tax ExemDtion of Interest on Notes. The City covenants that it will take all actions necessary to prevent interest on the Notes from being included in gross income for federal income tax purposes, and it will neither take any action nor make or permit any use of proceeds of the Notes or other funds of the City treated as proceeds of the Notes at any time during the term of the Notes which will cause interest on the Notes to be included in gross income for federal income 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. Section 12. Small Governmental Issuer Arbitraqe Rebate Exception and Desiqnation of NOtes 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 (b) no Note which is part of this and has general taxing power; ~1~.01 -7- issue of Notes is a "private activity bond" within the meaning of Section 141 of the Code; (c) at least 95% of the net proceeds of the Notes 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 Notes are isSued is not reasonably expected to exceed $5,000,000; and (e) the amount of tax-exempt obligations, including the Notes, designated by the City as "qualified tax-exempt obligations" for the purposes of Section 265(b) (3) of the Code during the calendar year in which the Notes are issued does not exceed $10,000,000. The City therefore certifies that the Notes are eligible for the arbitrage rebate exemption under Section 148(f) (4) (D) of the Code and designates the Notes as "qualified tax-exempt obligations" for the purposes of Section 265(b) (3) of the Code. Section 13. Undertakinq to Provide Continuing Disclosure. To meet the requirements of paragraph (b)(5) of United States Securities and Exchange Commission ("SEC") Rule 15c2-12 (the "Rule"), to the extent applicable to an issue of municipal securities with a stated maturity of 18 months or less under paragraph (d) (3) of the Rule, as applicable to a participating underwriter for the Notes, the City makes the following written 0219407.01 -8- undertaking (the "Undertaking") for the benefit of holders of the Notes: (a) Undertakinq to Provide Notice of Material Events. The City undertakes 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 ("NRMSIR") or the Municipal Securities Rulemaking Board ("MSRB"), and to a state information depository, if any, established in the state of Washington (the "SID"), timely notice of the occurrence of any of the following events with respect to the Notes, if material: (i) principal and interest payment delinquencies; (ii) non-payment related defaults; (iii) unscheduled draws on 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 Notes; (vii) modifications to rights of holders of the Notes; (viii) Note calls; (ix) defeasances; (x) release, substitution, or sale of property securing repayment of the Notes; and (xi) rating changes. (b) Amendment of Undertakinq. The Undertaking is subject to amendment after the primary offering of the Notes without the consent of any holder of any Note, or of any broker, dealer, municipal securities dealer, participating underwriter, rating agency, NRMSIR, the $ID 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. (c) Beneficiaries. The Undertaking evidenced by this Section 13 shall inure to the benefit of the City and any holder of Notes, and shall not inure to the benefit of or create any rights in any other person. (d) Termination of Undertakinq. The City's obligations under this Undertaking shall terminate upon the legal defeasance of all of the Notes. 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 Notes for any reason, as confirmed by an opinion of nationally recognized bond counsel or other counsel familiar with federal securities laws delivered to the City, and the City provides timely 0219407.01 -9- notice of such termination to each NRMSIR or the MSRB and the SID. (e) Remedy for Failure to Comply with Undertakinq. As soon as practicable after the City learns of any failure to comply with the Undertaking, the City will proceed with due diligence to cause such noncompliance to be corrected. No failure by the City or other obligated person to comply with the Undertaking shall constitute a default in respect of the Notes. The sole remedy of any holder of a Note shall be 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. (f) Designation of Official ResDonsible to Administer Undertakinq. The Treasurer of the City or his or her designee (or such other officer of the City who may in the future perform the duties of the City Treasurer) is authorized 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 Notes set forth in this Section 13 and in accordance with the Rule, including, without limitation, the following actions: (i) Determining whether any event specified in Section 13(a) has occurred, assessing its materiality with respect to the Notes, and, if material, preparing and disseminating notice of its occurrence; (ii) Determining whether any person other than the City is an "obligated person" within the meaning of the Rule with respect to the Notes, and obtaining from such person an undertaking to provide any notice of material events for that person in accordance with the Rule; (iii) Selecting, engaging and 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 (iv) Effecting any necessary amendment of the Undertaking. Section 14. Approval of Note Purchase Contract. Seattle- First National Bank of Seattle, Washington, has presented a purchase contract (the "Note Purchase Contract") to the City 0219407.01 -10- offering to purchase the Notes under the terms and conditions provided in the Note Purchase Contract, which written Note Purchase Contract is on file with the City Clerk and is incorporated herein by this reference. The City Council finds that entering into the Note Purchase Contract is in the City's best interest and therefore accepts the offer contained therein and authorizes its execution by City officials. The Notes will be prepared at City expense and will be delivered to the purchaser in accordance with the Note Purchase Contract, with the approving legal opinion of Foster Pepper & Shefelman, municipal bond counsel of Seattle, Washington. Bond counsel shall not be required to review and shall express no opinion concerning the completeness or accuracy of any official statement, offering circular or other sales or disclosure material issued or used in connection with the Notes, 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 Notes to the purchaser and for the proper application and use of the proceeds of the sale thereof. Section 15. Preliminary Official Statement Deemed Final.. The City Council has been provided with copies of a preliminary official statement dated January 8, 1996 (the "Preliminary Official Statement"), prepared in connection with the sale of the Notes. For the sole purpose of the purchaser's compliance with 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 0219407.01 to offering price, interest rate, selling compensation, delivery date and other terms of the Notes dependent on such matters. Section 16. Effective Date - Urgency. The City is in urgent need of obtaining funds to offset the City's deficit cash flow and has been advised that a favorable market exists at this time for the sale of the Notes resulting in a lower interest rate on the Notes and a savings to the City. Therefore, the City Council finds that sufficient urgency exists to require that this ordinance take effect immediately upon its passage and publication. PASSED UNANIMOUSLY by the City Council of the City of Bremerton, Washington, this 17th day of January, 1996. APPROVED this JCMNE. LAW Council President day of January, 1996. ATTEST: LYNN HORTON, Mayor KATHLEEN McCLUSKEY, City Clerk APPROVED AS TO FORM: George M. Mack, Bond Counsel Publication Date: Ordinance Number: 0219407.01 -12- 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 17th day of January, 1996, as that ordinance appears on the Minute Book of the City. DATED this day of January, 1996. Kathleen L. McCluskey City Clerk 021~407.01 CITY OF BREMERTON 1996 GENERAL FUND CASH FLOW PROdECTION 2000 1500 1000 500 -5OO -1000 -1500 DEC JAN Thousands FEB MAR APR MAY JUN JUL AUG SEP I+~,~ c^s.I OCT NOV DEC CITY OF BREMERTON 1996 GENERAL FUND CASH FLOW PROJECTION 9mlmm Tax SMee Tax - Cdminal Justlc~ B&OTax Utalty Tax ~. - T~ P.I.L.O.T. - - W~ F~~~ T~ ~ T~ Av~ P~od 13 Expe.dllun~ T.~ ~ N~ Term Expendllunm 33,920 21,740 64,483 18~,834 7TX)A79 1,,464,964 29,005 15,777 40,327 149,075 624,033 1,(~5,322 4,437,452 386,292 361,200 322,145 306,327 312,336 348,688 338,332 331,150 389,729 547,371 370,150 363,636 4,177,548 311,290 145,902 13,656 238,901 158,382 6,141 2'72,091 150,440 6,406 297,357 132,585 38,591 .1,600,000 123,0~1 119,612 120,968 109,974 110,(X)2 64,655 65,471 ·74,301 78,973 ?'2,397 64,647 69,308 1,155,000 36,792 37,120 29,022 29,8(13 23,902 15,g05 11,472 8,975 9,071 8,82'8 12,73}' 29,221 78,185 73,071 56,427 72,550 4,00 38,664 81,029 54,121 61,495 76,16,5 73,071 72,566 780,000 0 0 O 0 0 30,000 0 0 0 0 0 0 30,000 45,235 5,162 5,323 44,458 ' 1,663 4,578 38,718 7,063 6,568 43,770 5,447 5,955 215,500 56,946 90,853 ?0,648 67,374 73,344 67,508 72,689 71,~21 ~,232 70.954 63,ee7 ~,734 e50.500 13,646 13,754 14,041 22,058 29,247 36,650 2(l,290 22,998 18,333 19,62'9 15,171 19,006 250,000 31,238 37,752 31,549 3~,4{i~ 30,216 35,020 27,988 38,066 29,005 37,188 29,546 37,9,37 4(X).O00 0 0 0 0 0 0 0 65,000 0 0 O O 65,000 29,638 0 0 31,978 0 0 29,493 0 0 20,(~04) 0 0 114,000 0 0 50,411 0 0 52,347 0 0 51,634 0 0 52,30(l 207,000 0 0 0 0 3e.297 (2,287) 0 0 0 0 0 0 34,000 366,102 206,966 217,677 379,506 304,388 29~,496 3,48,916 387,653 254,754 309,839 307,684 253,138 3.784337 1,529,505 1,171,~34 1,045,524 1.540,63~ 1,604,463 2,534,978 1,383,245 1,292,558 1,050,905 1,,485,9~9 1,761,837 2,166,073 18,829,337 3,290,565 1,450,214 678,817 659,335 1,130,153 1,899,5,44 1,735,474 1,208`275 618,333 634,907 765,471 1.,463,130 15,524,238 316,990 316,900 1,250o000 1`250,000 239,377 239,377 478,754 1,434.034 ~ ~ ~ ~ ~ 1.5~0.381 1.65~.645 1.4g0.305 1.631.353 1.468.414 t.453.150 18..543.563 3,001,324 1,,811,921 1,550,119 1,423,508 1,7~5,588 1,547,3t5 1,78g,758 1,656,846 1,480,305 1,631,353 1,488,414 1,483,130 20,589,33'7 278.560 (361.70~) (8~1,301) (764.3311 (~3~,433) '~.r)2.229 (5,4,,~64) (446.572} (650.972) (99~.36~} (702.943) 0 C.~123FILESgAONTHLY~EVTAN~.W~4 11/03/95 04.t)0 PM ~-,~_L]MINAR Y OFFICIAL STATEMENT DATED JANb,~_.~ ~ 8, 1996 NEW ISSUE RATING: Not Applied For NEGOTIATED In the opinion of Bond Counsel, assuming compliance t~y the City with applica~e requirements o! the internal Revenue Code of 1986, as arner~ed, including arbitrage, interest on the Notes is excluded from gross income of registered owners for federal income ~x puq~es un~er exisl~g iade~l law and is not an item of tax preference for purposes of the a~ernative minimum tax applicable to individuals. However, while interest on the Notes also is not an item of tax preference for purposes of the alternative rninb~urn ~ax applicable to corpota~fons, interest on the Notes received I~y corpotatfons is iaken into account in the computation of adjusted current earnings for purposes of the alternative minimum tax applicable to corporaEons, interest on the Notes received by certain corporations may be subject to an environmental tax, interest on the Notes received by certain $ co~oralfof;s may be subject to tax and interest on the Notes received by foreign cotporatfons with United States branches may be subject to · foreign branch p~ofits tax. Receipt of interest on the Notes may have other federal tax conE~uences for cor~in taxpayers. See 'TAX EXEMPTION' end 'CERTAIN OTHER FEDERAL TAX CONSEQUENCES' herein. CITY OF BREMERTON KITSAP COUNTY,WASHINGTON $1,250,000* TAX ANTICIPATION NOTES, 1996 DATED: February 1, 1996 DUE: January 31, 1997 The Notes will be issued in fully registered form in the denomination of $50,000 or integral mulltiples thereof. Principal of and interest on the Notes will be paid by the Fiscal Agent of the State of Washington (the "Paying Agent"), currently First Interstate Bank of Washington, N.A., Seattle, Washington and The Bank of New York, New York, New York, upon presentation and surrender of the Notes at maturity. Due Amount January 31, 1997 $1,250,000' Rate Price The Notes will not be subject to redemption prior to their stated maturity. The Notes are direct and general obligations of the City. For as long as any of the Notes are outstanding, the City irrevocably pledges to levy taxes annually available to it without a vote of the electorate residing therein 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 Notes, 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 the principal of and the interest on the Notes. See "SECURI'I'Y" herein. The City has designated the Notes as ~qualified tax-exempt obligations" for banks, thrift institutions and other financial institutions. The Notes are not private activity bonds. See ~FEDERAL INCOME TAX EXEMPTION" herein. The approving legal opinion of Foster Pepper & ehefelman, Bond Counsel, Seattle, Washington, will be delivered with the Notes. The closing of the Notes is expected to occur on February 1, 1996. The Notes in definitive form will be ready for delivery at the facilities of The Depository Trust Company in New York, New York, on or around ,1996. This cover page contains certain information for quick reference only. It is not a summary of this issue. Investors must read the entire Official Statement to obtain information essential to making an informed investment decision. 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 Notes by any person in any jurisdiction in which it is unlawful for such person to make such a sale. The information contained in this 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 Notes a signed statement substantially to the effect that this Preliminary Official Statement, as of its date and as of the date of the Notes, neither contains any untrue statement of a material fact nor omits to state any material fact necessary to make the statements therein, in light of the circumstances under which they were made, not misleading in any material respect and that there has not been any material adverse change in the normal operations or financial condition of the City nor, to the best of the City's knowledge, in the general economy of the City since the date of the Preliminary Official Statement. Securities Act of 1933 The Notes have not been registered under the Securities Act of 1933, as amended, in reliance upon specific exemptions contained in such act. The registration or qualification of the Notes in accordance with applicable provisions of securities laws of the state in which the Notes have been registered or qualified and the exception from registration or qualification in other states cannot be regarded as a recommendation thereof. Neither these states nor any of their agencies have passed upon the merits of the Notes nor the accuracy or completeness of this Preliminary Official Statement. Any representation to the contrary may be a criminal offense. Secondary Market It has been the practice of the Underwriter to maintain a secondary market in municipal securities which it sells. The Underwriter intends to engage in secondary market trading of the Notes, subject to applicable securities laws. The Underwriter, however, is neither obligated to engage in secondary trading nor to repurchase any of the Notes at the request of the registered owners thereof and no assurance can be given that a secondary market for the Notes will be available. In connection with the offering of the Notes, the Underwriter may over-allot or effect transactions that stabilize or maintain the market price of the Notes at a level above that which might otherwise prevail in the open market. Such stabilizing, if commenced, may be discontinued at any time. 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) days of the sale date of the Notes. ii CITY OF BREMERTON KITSAP COUNTY, WASHINGTON Lynn Horton MAYOR TERM EXPIRES DECEMBER31 1997' Sherril Huff-Menees A1 Colvin Cecil McConnell David Farr John Law Richard Neville Lon Overson Robert Winters Carlos Montgomery CITY COUNCIL r~'--t~--C- 1997 Member 1997 Member 1999 Member.:£ 1999 ~~S~ 1997 Member ~ 1997 Member 1999 Member 1997 Member 1999 APPOINTED OFFICIALS Richard Hanna Kathleen McCluskey John Koch Ian Sievers Treasurer Administrative Services Director/City Clerk Auditor Attorney BOND COUNSEL Foster Pepper & Shefelman Seattle, Washington UNDERWRITER Seattle-First National Bank Capital Markets Division Seattle, Washington iii TABLE OF CONTENTS Pa_=e Introduction ........................................................................................................................... 1 Description of the Notes ....................................................................................................... 1 Authorization ........................................................................................................................ 1 Security ................................................................................................................................. 2 Purpose .................................................................................................................................. 2 Note Fund .............................................................................................................................. 2 Failure to Redeem the Notes ................................................................................................. 2 Debt Payment Record ........................................................................................................... 2 Future Financing ................................................................................................................... 2 Assessed Valuation Determination ....................................................................................... 2 Tax Collection Procedure ...................................................................................................... 3 Authorization of Debt ........................................................................................................... 3 General Obligation Indebtedness .......................................................................................... 3 Limits on Amount of General Obligation Indebtedness ....................................................... 4 Authorization of Short-Term Debt ........................................................................................ 4 Taxing Powers and Limitations ............................................................................................ 5 Auditing of City Finances ..................................................................................................... 5 Net Direct Debt and Estimated Net Overlapping General Obligation Debt ......................... 6 Bonded Debt Ratios of the City ............................................................................................ 6 Statutory Debt Limit Calculation .......................................................................................... 7 Tax Collection Record of the City ....................................................................................... 8 Property Tax Rates ............................................................................................................... 8 Comparative Statement of General Fund Revenues and Expenditures ............................... 9 General Fund Revenues and Expenditures 1995 and 1996 Budget ..................................... 10 City Profile ............................................................................................................................ 11 Schedule of General Obligation Bond Debt Service for the City ......................................... 12 General and Economic information ...................................................................................... 13 Preservation of Tax Exemption .............................................................................................. 18 Federal Income Tax Exemption ............................................................................................ 18 Certain Other Federal Tax Consequences ............................................................................. 19 Absence of Material Litigation ............................................................................................. 19 Initiative 601 ......................................................................................................................... 19 CUSIP Numbers .................................................................................................................... 20 Approval of Bond Counsel ................................................................................................... 20 Continuing Disclosure .................... , ...................................................................................... 21 Underwriting ................................................................................................................... : .....21 Concluding Statement ........................................................................................................... 22 iv PRELIMINARY OFFICIAL STATEMENT CITY OF BREMERTON Kitsap County, Washington $1,250,000 TAX ANTICIPATION NOTES, 1996 INTRODUGTION 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 $1,250,000 principal amount of Tax Anticipation Notes, 1996 (the "Notes"). This Preliminary Official Statement provides information concerning the City and the Notes. DESCRIPTION OF THE NOTES Principal Amount, Dates, Interest Rates, and Maturities The Notes will be issued in the principal amount of $1,250,000 and will be dated and bear interest from February 1, 1996 until their stated maturity. The Notes will mature on January 31, 1997, and will bear interest, payable at maturity, at the rate of __% per annum. Interest on the Notes will be computed on the basis of a 360-day year of twelve 30-day months. Optional Redemption The City has not reserved the right to redeem the Notes prior to maturity. Form and Denomination The Notes will be issued in fully registered form as to both principal and interest in the denomination of $50,000 or any integral multiple thereof. Registrar, Paying Agent and Transfer Agent Principal of and interest on the Notes is payable in lawful money of the United States of America, by the Fiscal Agent of the State of Washington, the ("Registrar" and "Paying Agent" and the Transfer Agent") upon presentation and surrender of the Notes, at maturity, at either of the principal offices of the Fiscal Agent in Seattle, Washington or New York, New York, currently First Interstate Bank of Washington, N.A., and The Bank of New York. AUTHORIZATION The Notes are issued in accordance with the provisions of the Constitution and applicable statutes of the State of Washington, pursuant to Ordinance No. (the "Ordinance") of the City Council, adopted on January 17, 1996. 1 SECURITY For as long as any ~of the Notes are outstanding, the City irrevocably pledges to levy taxes annually available to it without a vote of the electorate residing therein 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 Notes, 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 the principal of and the interest on the Notes. PURPOSE The proceeds of the Notes will be used to provide cash flow management of the City's General Fund revenues and expenditures, in anticipation of the collection of general ad valorem property taxes and other money due the City's General Fund in 1996, and paying the costs of issuance and sale of the Notes, all as approved by the City Council. NOTE FUND The City has created and established in the office of the City Treasurer a special fund to be known and designated as the Tax Anticipation Note Fund, 1996 (the "Note Fund") for the sole purpose of payment of the principal of and interest on the Notes. Accrued interest, if any, received from the sale of the Notes shall be deposited in the Note Fund. The City covenants to deposit in the Note Fund on or before maturity amounts sufficient, together with other monies otherwise available therein, to pay the principal of and interest due on the Notes. FAILURE TO REDEEM THE NOTES If any Note is not redeemed when properly presented at its maturity, the City is obligated to pay interest on that Note at the same rate provided in the Note from and after its maturity until that Note, both principal and interest, is paid in full or until sufficient money for its payment in full is on deposit in the Note Fund. DEBT PAYMENT RECORD The City has always promptly met principal and interest payments on outstanding obligations when due. Additionally, no refunding bonds have been issued for the purpose of preventing an impending default. FUTURE FINANCING The City has no other general obligation financing plans for 1996. ASSESSED VALUATION DETERMINATION In the State of Washington, the County Assessor (the "Assessor") determines the value of all real and personal property throughout the County (including the City) which is subject to ad valorem taxation. The Assessor's duties and methods of determining value are prescribed and controlled by statute and by detailed regulations promulgated by the Department of Revenue of the State of 2 Washington. For tax purposes the assessed value of property is set at 100% of its actual value. Property in Kitsap County is revalued annually based on market sales and receives an on-site appraisal every six years. The property is listed by the Assessor on a tax roll at its current assessed value and the tax roll is filed in the Assessor's office. The Assessor's determinations are subject to revision by the County Board of Equalization and, for certain property, subject to further revision by the State Board of Equalization. After all administrative procedures are completed, the taxing unit receives the Assessor's final certificate of assessed value of property within the taxing unit. TAX COLLECTION PROCEDURE Property taxes are levied in specific amounts, and the rate for all taxes levied for all taxing cities in the County (including the City) are determined, calculated and fixed by the Assessor based upon the assessed valuation of the property within the various taxing cities. The Assessor extends the taxes to be levied within each taxing City upon a tax roll which contains the total amount of taxes to be so levied and collected and assigns a tax account number to each tax lot. The tax roll is delivered to the Kitsap County Treasurer by January 15 of each year, and an abstract of the tax roll, showing the total amount of taxes collectible in each of the taxing cities for the year, is delivered to the Board of County Commissioners at the same time. All taxes are due and payable on the 30th of April of each year, but if the amount due from a taxpayer exceeds thirty dollars ($30.00), one-half may be paid then and the balance no later than October 31 of each year. The method of giving notice of payment of taxes due, accounting for the money collected, the division of the taxes among the various taxing cities, giving notice of delinquency, and collection procedure are all covered by detailed statutes. The lien for ad valorem property taxes which have been levied prior to the filing of federal tax liens is prior to such federal tax liens. In other respects, and subject to the possible "Homestead Exemption," the lien for delinquent property taxes is prior to all other liens or encumbrances of any. kind on real or personal property subject to taxation. By law (Chapter 6.13 RCW) the taxing umt may commence foreclosure of a tax lien on real property after three (3) years have passed since the first delinquency. Washington State's courts have not decided whether the Homestead Exemption may give the occupying home owner a right in the forced sale of the family residence for delinquent general property taxes to retain the fu'st $30,000 of proceeds of the sale. (See Algona vs. Sharp, 30 Wn. App. 837, 638 P.2d 627 (1982), holding the homestead right superior to liens for local improvement district assessments). AUTHORIZATION OF DEBT The power of the City to contract debt of any kind is controlled and limited by state law. All debt must be set forth in accordance with detailed budget procedures and paid for out of identifiable receipts and revenues. The budget must be balanced for each fiscal year. It is unlawful for an officer or employee of the City to incur liabilities in excess of budgetary appropriations. GENERAL OBLIGATION INDEBTEDNESS Under the Constitution and statutes of the State, the City may incur two types of general obligation indebtedness (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 issue 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: (la) 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 "IA×lNG POWERS AND LIMITATIONS".) AUTHORIZATION OF SHORT-TERM DEBT As a result of 1982 legislation, any Washington municipal corporation may borrow money and issue short-term obligations, the proceeds of which may be used for any lawful purpose. Short- term obligations may be issued in anticipation of the receipt of revenues, taxes, or grants or the sale of (1) general obligation bonds if the bonds may be issued without the consent of the voters or if previously ratified by the voters; (2) revenue bonds if the bonds have been authorized by ordinance or resolution; or (3) local improvement district bonds if the bonds have been authorized by ordinance or resolution. These short-term obligations shall be repaid out of money derived from the source or sources in anticipation of which they were issued or from any money legally available for this purpose. 4 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 form any available money inthe 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 Chapter 84.52.043 RCW, cities may levy, without a vote of the residents residing therein, a maximum of $3.375 per thousand for general city purposes (the "regular levy"). Cities with full-time firemen may levy an additional $.225 per thousand to fund the city's Fireman's Pension Fund (Chapter 41.16.060 RCW), thus creating a maximum annual levy rate of $3.60 per thousand. The City's maximum regular levy rate for 1996 is $3.3573, of which it is currently levying $3.3299 per thousand dollars of taxable assessed valuation. 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 (Chapter 84.55.010 RCW). 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 (Chapter 84.55.050 RCW). 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. NET DIRECT DEBT AND ESTIMATED NET OVERLAPPING GENERAL OBLIGATION DEBT (As of November 30, 1995) ! Direct Debt: Voted General Obligation Bonds Outstanding ...................... Non-Voted Bonds Outstanding .............................................. Non-Voted Notes Outstanding (this issue) ............................ Bank Line of Credit Outstanding ........................................... Less: Debt Service Fund Balance ........................................... Net Direct Debt ......................................................................... $ 1,880,000 8,825,000 1,250,000 8,210 (278,127) $ Estimated Net Overlapping Debt Net G.O. Debt Percent of Outstandin_= Overla_o Kitsap County ................................. $ 36,167,402 11.23% Port of Bremerton ............................ 8,300,000 26.09 Bremerton Sch. Dist. No. loo-C ...... 15,365,574 72.88 Central Kitsap Sch. Dist. No. 401 .... 12,295,000 1.17 South Kitsap $ch. Dist. No. 402 ...... 3,425,000 0.05 South Kitsap Park & Rec. District ... 11,260,000 0.10 Library District ................................ 5,250,000 11.99 Amount of OvedaD $4,061321 2,165 629 11,197 700 143 472 1 8OO 11 101 629,733 Estimated Net Overlapping Debt: .......................................... $ Net Direct plus Estimated Net Overlapping Debt: ......................................... $ BONDED DEBT RATIOS OF THE CITY 11,685,083 18.210,756 29,895,839 Preliminary Assessed Valuation for collection Year 19962 ......................... $ 1,223,940,521 Estimated City Population (1995)3 ............................................................... 39,610 Assessed Valuation Per Capita .................................................................... $ 30,900 Net Direct Debt to Assessed Valuation .......................................................... 0.95 % Net Direct and Estimated Overlapping Debt to Assessed Valuation ........... 2.44% Net Direct Debt Per Capita .......................................................................... $ 295 Net Direct and Estimated Overlapping Debt Per Capita .............................. $ 755 1 Adjusted to reflect the issuance of the Notes. 2 Preliminary assessed valuation for tax collection year 1996 is stated as the full assessed value of all taxable real and personal property in the City. 3 Source: Washington State Office of Financial Management. 6 STATUTORY DEBT LIMIT CALCULATION (As of November 30, 1995)1 Preliminary Taxable Assessed Valuation for Collection year 1996 2 .................... I. General Purposes a. Non-Voted Indebtedness (1.5% of Valuation) Limit ..................................................................................................... Less: Non-Voted Bonds Outstanding ............................................... Less: Non-Voted Notes Outstanding (the Notes) ............................. Less: Bank Line of Credit Outstanding ............................................. Plus: Cash and Investments in Debt Service Funds .......................... Remaining Capacity for General Purposes (Nonvoted) .............. b. Voted Indebtedness (2.5% of Valuation) Limit .......................................................................... ~ .......................... Less: Voted Bonds Outstanding ........................................................ Less: Non-Voted Bonds Outstanding ............................................... Less: Non-Voted Notes Outstanding (the Notes) ............................. Less: Bank Line of Credit Outstanding ............................................. Plus: Cash and Investments in Debt Service Funds .......................... Remaining Capacity for General Purposes (Voted) .................... II. Utility Purposes (2.5% of Valuation) Limit ..................................................................................................... Outstanding ....................................................................................... Remaining Capacity for Utility Purposes ................................... III. Parks and Open Space Purposes (2.5% of Valuation) Limit ..................................................................................................... Outstanding ....................................................................................... Remaining Capacity for Parks and Open Space ......................... $1,223,940,521 $ 18,359,108 (8,825,000) 0,250,000) (8,21o) 278,127 $ 8,554,025 $ 30,598,513 (1,880,000) (8,825,ooo) (1,250,000) (8,210) 278,127 $ 18,913,430 $ 30,598,513 0 $ 30,598,513 $ 30,598,513 0 $ 30,598,513 1 Adjusted to reflect the issuance of the Notes. 2 Total taxable assessed valuation for tax collection year 1996. 7 TAX COLLECTION RECORD OF THE CITY I Taxable Collected Collected as of Collection Assessed Tax Year of Lew_ November 30, 1995 Year Valuation 2 Levv Amount Percent Amount Percent 1995 $1,203,299,197 $ 4,476,487 NA3 NA3 NA3 HA3 1994 1,169,824,600 4,144,873 $3,973,2754 95.86%4 $ 3,5902,1534 98.21%4 1993 1,072,545,656 4,292,888 4,110,011 95.74 4,249,959 99.00 1992 949,107,196 3,544,019 3,397,651 95.87 3,530,197 99.6 ! 1991 855,620,809 3,2 ! 7,059 3,071,970 95.49 3,213,715 99.90 1990 835,838,678 3,140,792 2,991,290 95.24 3,137,619 99.90 NOTE: 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. Levy Year 1995 1994 1993 1992 1991 1990 PROPERTY TAX RATES 3 (Rates In Dollars per $1,000 of Assessed Valuation) City School Emergency General City City State Kitsap Port of District No. Medical Regional Fond Bonds Special School County_ Bremertqn 100C PUD Services Library_ Total $3.2470 $.2308 $ 0 $3.5508 $ ].2249 $.4079 $2.1387 $.0940 $.2500 $.4595 $11.6036 3.0635 .2393 0 3.4297 1.1731 .3897 5.0440 .0865 .2490 .4447 14.1210 3.0871 .2543 .4339 3.3978 1.2383 .3955 5.2311 .0904 .2500 .4283 14.8067 3.2614 .2325 -3.3849 1.2673 .4184 5.3694 .0926 .2447 .4375 14.7087 3.3325 .1806 3.6430 1.4163 .4467 4.4455 .1041 .2500 .4926 14.3113 3.3250 .1831 3.8331 1.3790 .4500 3.8663 .1060 .2500 .5000 13.8925 I 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 valuation for collection year 1996 is $1,223,940,521. 3 Not available; to be collected. 4 Taxes levied and collected as of November 30, 1995. 8 COMPARATIVE STATEMENT OF GENERAL FUND REVENUES AND EXPENDITURES 1 (Fiscal Year Ending December 31) 1994 1993 1992 1991 1990 Revenues: Taxes $ 14,137,828 $ 13,340,322 $ 12,254,300 $ 11,019,779 $ 10,971,059 Licenses & Permits 390,454 362,968 367,369 314,209 243,129 Intergovernmental 728,407 778,927 1,199,015 1,196,304 920,806 Charges for Services 1,394,815 1,502,067 1,265,887 1,200,704 1,142,412 Fines & Forfeits 593,093 556,447 579,071 495,204 495,397 Miscellaneous 240.672 26 I. 198 295.810 342.866 307.288 Total Revenues $ 17,485,269 $ 16,801,929 $ 15,961,452 $ 14,569,066 $ 14,080,091 Expenditures: General Government $ 4,843,656 $ 5,039,485 $ 4,702,330 $ 4,452,251 $ 4,050,690 Security of Persons & Prop. 8,219,945 7,850,957 7,326,703 6,742,632 5,877,186 Physical Environment 587,931 698,080 655,845 675,231 577,282 Transportation 840,530 879,838 805,809 788,332 758,977 Economic Environment 514,320 448,824 352,504 397,279 269,687 Mental & Physical Health 250,493 249,239 236,594 221,670 177,157 Culture & Recreation 1,426,763 1,323,285 1,178,131 1,183,371 1,031,688 Redemption of General LT Debt 24,672 30,735 28,393 Debt Service 44,593 18,414 125,479 187,110 195,886 Capital Outlay 385.414 277.113 228.162 945.504 611.872 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) $ 17,138,317 $ 16,815,970 $ 15,639,950 $ 15,593,380 $ 13,550,425 $ 6,000 $ 6,000 $ 6,000 $ 107,500 $ 6,000 (398,376) (236,725) (334,764) (249,1 44) (249,1 44) 59,640 0 1,893 0 0 0 0 0 730,000 0 $ (323,736) $ (230,725) $ 326,871 $ 588,356 $ (243,144) Fund Balance, January 1 Current Yr. Excess/(Deficit) Prior Year's Corrections Residual Equity Transfer Other Equity Charge TOTAL ENDING FUND BALANCE $ (44,548) $ 206,399 $ 217,464 $ 572,130 $ 338,956 0 0 0 78,717 0 9717 (6108) (1,545) (53,349) 1,084.983 (73) (4,149) 2.575 0 $ 1,064,368 $ (44,548) $ 206,401 $ 217,464 $ 572,129 Source: Office. City of Bremerton Annual Financial Reports. All years have been audited by the Washington State Auditor's 9 GENERAL FUND REVENUES AND EXPENDITURES 1995 AND 1996 BUDGET 1 (Fiscal Year Ending December 31 ) Revenues Taxes ...................................................................................... $ License and Permits ............................................................... Intergovernmental .................................................................. Charges for Services ............................................................... Fines and Forfeits ................................................................... Miscellaneous ......................................................................... Total Revenues ....................................................................... $ Working Capital .................................................................. Total Resources: ................................................................ $ Current Expenditures: General Government .............................................................. City C~uncil ........................................................................... $ Executive ................................................................................ Administrative Services ......................................................... City Clerk ........................................................................ Treasurer ......................................................................... Information Services ....................................................... Po]ice & Fire Pension ..................................................... Transportation ................................................................. Intergovernmental Service .............................................. Misc. Non-Departmental ................................................ Legal Department ................................................................... Human Resources ................................................................... Community Development ...................................................... Community Development ............................................... Building ........................................................................... City Auditor ........................................................................... Civil Service ........................................................................... Public Safety Municipal Court ..................................................................... Police Department ............... .' .................................................. Fire Department ..................................................................... Public Works General Facilities ................................................................... Engineering ............................................................................ Leisure Services General Parks ......................................................................... - Recreation ............................................................................... Senior Center .......................................................................... Pool ......................................................................................... Cemetery Services .................................................................. Athletics ................................................................................. Tax Anticipation Note Debt Service ...................................... Total Current Expenditures ............................................ $ 19962 15,070,200 330,135 614,600 1,992,927 523,400 2.890.699 20,421,961 427.500 21,849,461 135,465 196,065 2,186,1073 3 3 3 1,228,069 967,350 116,351 1,317,895 447,358 210,582 665,806 3 79,141 3 3 5,536,247 3,365,561 540,464 451,903 1,024,459 185,439 144,844 240,865 66,136 243,354 2.500.000 21,849,461 1995 14,159,160 321,050 544,890 1,866,638 607,239 2.839.820 20,338,737 541~000 20,879,737 130,218 181,569 354,536 726,897 296,036 1,216,067 910,481 231,956 1,380,954 397,521 152,651 438,323 348,633 71,704 12,936 644,847 5,012,032 3,194,581 705,393 472,587 847,689 180,425 180,990 232,559 58,152 0 2,500,000 20,879,737 I Source: City of Bremerton. 2 Preliminary. 3 Certain categories in Preliminary 1996 Budget are combined under Administrative Services. 10 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 fn'e and police protection, parks and recreation facilities/activities, streets, planning, zoning and general administrative services. The City operates water, sewer and stormwater utility systems. Currently, there are 322 full-time employees of the City. Key Personnel Lynn Horton, Mayor: Ms. Horton began her fh'st 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 Teamster Local 589 130 Patrolman's Association 53 Police Management Association 5 International Association of 44 Fire Fighters Local 437 Membership Contract Period Expiration Date 3 yr. 12/31/97 2 yr. 12/31/96 3 yr. 12/31/96 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. 11 '7/ SCHEDULE OF GENERAL OBLIGATION BOND DEBT SERVICE FOR THE CITY1 (As of December 31, 1995) Outstanding Voted General Obligation Bonds Non-Voted General Obligation Bonds Total Year Principal Interest Principal Interest All Bonds 1996 $ 170,000 $ 115,502 $ 145,000 $ 532,624 $ 963,126 1997 165,000 105,560 345,000 525,718 1,141,278 1998 195,000 94,655 360,000 508,317 1,157,972 1999 205,000 82,369 380,000 489,330 1,156,699 2000 155,000 71,115 405,000 468,793 1,099,908 2001 175,000 60,551 680,000 445,850 1,361,401 2002 180,000 49,013 720,000 406,057 1,355,070 2003 200,000 36,468 760,000 363,213 1,359,681 2004 135,000 25,261 810,000 317,252 1,287,513 2005 145,000 15,739 855,000 267,563 1,283,302 2006 155,000 5,386 910,000 213,872 1,284,258 2007 0 0 965,000 155,663 1,120,663 2008 0 0 275,000 92,475 367,475 2009 0 0 290,000 75,370 365,370 2010 0 0 315,000 57,195 372,195 2011 0 0 335,000 37,017 372,017 2012 0 0 275,000 15,537 290,537 2013 0 0 0 0 0 Total $ 1,880,000 $ 661,619 $ 8,825,000 $ 4,971,846 $ 16,338,465 1 Does not include the Notes or Line of Credit outstanding. 12 GENERAL AND ECONOMIC INFORMATION The City The City of Bremerton, voted the Number One city to live in the United States in 1990 in Money magazine's survey of its readers (September 1990), 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 had an estimated 1995 population of 39,610. Kitsap County, covering 393 square miles of land, has the following other incorporated areas: Bainbridge Island (population 17,910), Port Orchard (population 6,240) and Poulsbo (population 5,765). 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 over 10,008 civilian employees, 8,954 military personnel, and 225 contractors, 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. This work is expected to last beyond 1996. The Naval Supply Center is another local military facility in the City, with about 200 employees. Located a few miles north of the City of Bremerton is the Naval Submarine Base at Bangor. The Base serves as a home base for Trident submarines and provides employment to 3,111 civilians. Additionally, 5,632 military and 1,665 contracted personnel are employed at the Base. As the only operational base of its kind, it is considered one of the most important ones in the country by the Department of Defense. 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 3,500 civilian, 300 military and 1,400 contracted personnel. Base closures in other geographic regions outside of Washington are expected to have a positive impact on growth in the City and Kitsap County. Five naval commands are scheduled to move to Bangor from out-of-state. The most significant of these is the Ocean Systems Engineering Command which is anticipated to bring 700 employees to the County. 520 housing units at Bangor and 170 housing units in Bremerton's Jackson Park have received funding (combined total of both projects is $65.6 million) and are being built to house additional military personnel being assigned to bases in the area. The Navy currently has a waiting list of approximately 1,900 families for military housing. Current PSNS Projects. The aircraft cartier USS Nimitz, lead ship in the world's largest class of aircraft carriers, and its escort ships are temporarily homeported in Bremerton. The USS Nimitz is just completing a complex overhaul. Current Navy plans have the USS Nimitz leaving the Puget Sound Area in 1997 when it becomes due for a refueling overhaul. The nuclear cruisers USS Arkansas and USS California and three combat support ships, USS Camden, USS Sacramento and the newly commissioned USS Rainier are also homeported at the shipyard. The USS Abraham Lincoln and USS Carl Vinson, both Nimitz class aircraft carriers, each with crews of over 3,000 personnel (net of air wing personnel), are currently being overhauled at the shipyard and are expected to be re-homeported either in Everett or Bremerton at the completion of that overhaul since their current home ports are being closed. The USS Abraham Lincoln recently arrived at Bremerton and the USS Carl Vinson is expected to arrive in late 1996 for overhaul. 13 While there have been approximately 700 layoffs of temporary on-call workers at the base over the past year, many of these temporary on-call workers are expected to be rehired during the first quarter of 1996 as a result of the arrival of the USS Abraham Lincoln and other projects. In 1991, the Navy completed a $1.8 million renovation of a downtown office building for use as shipyard administrative services. Currently the Navy is undertaking a $20 million capital project on 17 acres west of downtown to be used primarily for Navy administration. Other Major Employers The Port of Bremerton 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 fu'ms which employ a total of approximately 500 people. The Port is beginning development of a 90-acre high tech business park nearby. Several companies are planning expansions near or adjacent to the Bremerton National Airport, including an aircraft parts recycling company, and an electro-mechanical products manufacturer that needs 50,000 to 70,000 square feet of building space and 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. As part of the redevelopment of the City of Bremerton waterfront, the City of Bremerton Parks Department recently completed an inner-harbor park project featuring the decommissioned destroyer USS Turner Joy, which is being used as a floating museum. The park also includes a 46,000 square-foot boardwalk, harbor tour boat and ticket office. An adjacent floating pier that is used as a fishing pier, a 70-slip marina and breakwater was built by the Port of Bremerton and the Washington State Department of Fisheries in 1993. Health care needs are met by several facilities in the Bremerton area including the Naval Hospital - Bremerton with 370 employees and Harrison Memorial Hospital in Bremerton with 1,350 employees. A number of nursing homes and retirement complexes are also located in Bremerton. In late 1993, Harrison Memorial completed a $20.5 million expansion 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. Olympic College is a two-year public community college located in Bremerton, with an enrollment of approximately 4,310 (full-time equivalents). 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 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: · Kitsap County and the Port of Bremerton recently announced plans to provide up to $6 million in funding toward acquiring the USS Missouri, the World War II battleship known as the site of the Japanese surrender. To further support this proposal, the Washington State Governor has requested $3 million contribution from the Washington State Legislature. The proposal is to permanently moor the USS Missouri in Bremerton, its homeport since its deactivation. The U.S. Navy is considering bids from communities in several states. If the effort to retain the Missouri in Bremerton is successful, operation of the ship as a historical attraction is expected to increase tourist visitation to and spending in Bremerton and the Puget Sound area. 14 · A master plan for the development of Bremerton's downtown waterfront, known as Sinclair Landing, is being developed. A combination of public and private uses is foreseen for this project, including: a transit center, new ferry terminal, expansion of the waterfront park, expansion of-the marina, a new terminal for passenger-0nly ferries, parking, retail use, restaurants, offices, an 80-room inn, a six-plex cinema and multi-family housing, all connected with pedestrian corridors. A not-for-profit corporation would be the owner of the public portion of the project. Once the plan is finalized, the project is expected to take three years to complete at a cost of $74 million. At this time it is not known if or when this project will be completed. · The Washington State Department of Transportation ("DOT") provides ferry services between Seattle and Bremerton. Bremerton became the headquarters for all ferries with routes south of Seattle in 1994. DOT is designing a new $21.3 million ferry terminal for Bremerton, for construction after the year 2000. · Wal-Mart recently announced plans to build two new stores in Kitsap County: one in East Bremerton and one in Port Orchard. · A Safeway superstore opened in Bremerton about a year ago and another one is now being built near the new Wal-Mart site in East Bremerton. · The Bremerton Black Entrepreneurs Association is reviving the Roxy Theatre in downtown Bremerton for use as a concert hall and for other live entertainment. Following are economic indicators of the City and the County. CITY OF BREMERTON AND KITSAP COUNTY POPULATION Kitsap Number of City of Other County Resident Armed Bremerton Incor_oorated Unincorr~orated Total Forces Personnel2 1995 39,610 29,915 151,075 220,600 11,916 1994 35,920 28,625 148,655 213,200 9,716 1993 36,380 28,160 145,460 210,000 11,817 1992 38,990 27,405 139,205 205,600 15,631 1991 37,040 26,639 3 132,821 196,500 12,310 1990 38,142 12,913 138,676 189,731 15,050 TAXABLE RETAIL SALES 4 Year Kitsap County City of Bremerton 19955 $ 836,412,792 $ 216,800,994 1994 1,774,185,000 461,026,409 1993 1,658,975,823 422,329,475 1992 1,551,862,692 409,553,371 1991 1,438,615,382 390,094,567 1990 1,329,900,045 384,724,867 1989 1,138,364,190 349,852,541 1 Source: Washington State Office of Financial Management and U.S. Census. 2 Estimated. 3 The large increase is due to the annexation of the unincorporated areas of Bainbridge Island to the new City of Bainbridge Island. 4 Source: Washington State Department of Revenue 5 First two quarters only. 15 MAJOR TAXPAYERS IN THE CITY OF BREMERTON! Taxpayer Puget Sound Power and Light US WEST Inc. HMI, Inc. Michael Connolley Viewcrest Villages Limited Partnership Charles & Joan Haselwood Overlake Management Company Merit Company Homing Thiery Partnership Bremerton Cascade Associates Business Assessed Valuation Electric Utility $ 22,603,320 Telecommunications 16,370,144 Developer 9,817,460 Olympic College Business Svcs 8,022,400 Apartments 7,800,000 Retail 7,010,000 Retail 6,000,000 Retail 5,865,000 Apartments 5,765,000 Apartments 5,400,000 SEATI'LE-BREMERTON FERRY TRAFFIC STATISTICS 2 Year Number of Vehicle~ Number of Passengers 1994 719,125 1,456,706 1993 676,031 1,399,354 1992 667,251 1393,650 1991 659,827 1339,648 1990 638,689 1,484,629 Year KITSAP COUNTY WASHINGTON STATE AND USA LABOR FORCE AND AVERAGE ANNUAL UNEMPLOYMENT3, 4 Kitsao County_ Resid6nt Civilian Labor Force Average Annual Unemployment Unemolovment as a Percent of Labor Force United Total Kitsap County Washington (%) States Employment (%) (%) 1985 1986 1987 1988 1989 1990 1991 1992 1993 1994 69100 70 900 72 900 76 400 79 900 84 600 85 800 88 900 90 100 89 500 4,1~ ~,000 5.9 8.1 7.2 4,4~ ~,600 6.2 8.2 7.0 4,4~ 68,5~ 6.0 7.6 6.2 4,1~ 72,1~ 5.4 6.2 5.5 4,3~ 75,600 5.4 4.9 5.3 3,400 81,2~ 4.1 6.3 5.5 4,2~ 81,600 4.9 7.5 6.7 5,4~ 83,5~ 6.1 7.5 7.4 6,000 84,1~ 6.7 7.5 6.8 5,400 84,1~ 6.0 6.4 6.1 1 Source: Kitsap County Assessor's Office. 2 Source: Washington State department of Transportation, Marine Division 3 Includes nonagricultural wage and salary, self-employed, unpaid family workers, domestics, agricultural workers, labor disputants. 4 Source: Washington State Department of Employment Security 16 KITSAP COUNTY, WASHINGTON STATE AND USA INCOME ESTIMATES ! Total County Per Caoita In¢Qme Personal Income Kitsap Year ($000) County Washington 1993 $ 4,019,000 $ 18,676 $ 21,774 1992 3,902,000 18,607 21,333 1991 3,601,000 17,971 20,168 1990 3,323,997 17,318 19,268 1989 2,966,841 16,129 18,085 USA 20,800 20,137 19,201 18,677 17,690 1 Source: U.S. Department of Commerce and Washington State Office of Financial Management. 17 PRESERVATION OF TAX EXEMPTION The City has covenanted, by the Ordinance, to take all actions necessary to prevent interest on the Notes from being included in gross income for federal income tax purpose, and it will neither take any action nor make or permit any use of proceeds of the Notes or other funds of the City treated as proceeds of the Notes at any time during the term of the Notes which will cause interest on the Notes to be included in gross income for federal income 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. FEDERAL INCOME TAX EXEMPTION Exclusion from Gross Income In the opinion of Bond Counsel, assuming compliance by the City with applicable requirements of the Code, including arbitrage requirements under Section 148 of the Code, interest on the Notes 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. Corporate Alternative ~U~mum Tax While interest on the Notes 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 Notes, 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 percent 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 percent of the amount by which the corporation's alternative minimum taxable income exceeds $150,000, is then subject to a 20 percent minimum tax. Corporate Environmental Tax Section 59A of the Code imposes for tax years beginning on or before January 1, 1996, an environmental tax of 0.12 percent ($1.20 per $1,000) on the amount of a corporation's alternative minimum taxable income (increased for certain book income and adjusted current earnings, including any tax-exempt interest) that exceeds $2,000,000. 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 Notes, received by an S corporation (a corporation treated as a partnership for most federal tax purposes) that has Subchapter C earnings and profits at the close of the taxable year may be subject to federal income taxation at the highest rate applicable to corporations if more than 25 percent of the gross receipts of such S corporation is passive investment income. Foreign Branch Profits Tax Interest on the Notes may be subject to the foreign branch profits tax imposed by Section 884 of the Code when the Notes are owned by, and effectively connected with a trade or business of, a United States branch of a foreign corporation. 18 CERTAIN OTHER FEDERAL TAX CONSEQUENCES Notes 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 with all entities subordinate to it, docs 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 Notes 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 Notes 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 Notes received by property and casualty insurance companies will reduce tax deductions for loss reserves otherwise available to such companies by an amount equal to 15 percent of 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 Notes into account in determining gross income. Other Possible Federal Tax Consequences Receipt of interest on the Notes may have other federal tax consequences as to which prospective purchasers of the Notes may wish to consult their own tax advisors. ABSENCE OF MATERIAL LITIGATION There is no litigation of any kind now pending or, to the knowledge of the City, threatened to restrain or enjoin the issuance or delivery of the Notes or in any manner questioning the proceedings and authority under which the Notes are issued or affecting the ability of the City to pay the principal of or the interest on the Notes. INITIATIVE 601 Initiative No. 601 ("Initiative 601"), a statewide initiative, was approved by a majority of voters at the November 2, 1993, state general election. Initiative 601 imposes a state expenditure limit under which, with certain exceptions described below, the state may not expend state money from the state general fund in excess of a state expenditure limit. The state expenditure limit for any fiscal year is equal to total state expenditures from the state general fund for the previous fiscal year (exclusive of expenditures of 19 federal funds) increased by a percentage rate equal to a fiscal growth factor. The fiscal growth factor is defined as the average of the sum of the United States inflation changes and state population changes for each of the three prior fiscal years. For purposes of computing the state expenditure limit, the 1990 fiscal year is treated as the base year for total state expenditures from the state general fund. If the cost of any state program or function is shifted from the state general fund on or after January 1, 1993, to another source of funding, or if moneys are transferred from the state general fund to another fund or account, the state expenditure limit is required to be reduced to reflect that shift. The budget submitted by the Governor to the legislature may not propose, and the State Treasurer my not make, any expenditures in excess of the state expenditure limit. The state expenditure limit may be exceeded upon the enactment of legislation approved by a two-thirds vote of each house of the legislature declaring an emergency for up to 24 months for natural disasters that require immediate governmental action to alleviate human suffering and provide humanitarian assistance. Additional taxes required for such an emergency may be imposed only if funds in the education construction fund of the state have been exhausted, and must expire 30 days following the next general election unless the voters approve an extension of those taxes at that election. The state expenditure limit also may be exceeded for other purposes by legislative appropriations that are approved by a two-thirds vote of each house of the legislature and by a majority of voters at the next general election, but only for the fiscal period for which the appropriation is made. Any action or combination of actions by the legislature that raises state revenue or requires revenue-neutral tax shifts may be taken only if approved by a two-thirds vote of each house of the legislature, and then only if the resulting state expenditures in any fiscal year, including the new revenue, will not exceed the state expenditure limit. If the legislative action will result in expenditures in excess of the state expenditure limit, that legislative action will not take effect until approved by a majority of voters at a November general election. The legislature may not impose on any political subdivision of the state responsibility for new programs or increased levels of service under existing programs unless the subdivision is fully reimbursed by specific state appropriation for the costs of the new program or increases in service levels. While the provisions of Initiative 601 do not apply to local government units in the state, it is possible that future actions of the state legislature and the Governor taken in response to the limitations imposed by Initiative 601 could adversely affect local government finances. However, the City cannot predict either the probability or the potential impact of any such actions. CUSIP NUMBERS CUSIP identification numbers will be printed on the Notes. However, neither the failure to print such numbers on any Note nor any error with respect thereto shall constitute cause for a failure or refusal by the purchaser of the Notes to accept delivery and pay for the Notes in accordance with the terms of any agreement to purchase. Expenses related to the printing and assignment of CUSIP numbers on the Notes shall be paid for by the City. APPROVAL OF BOND COUNSEL Legal matters incident to the authorization, issuance and sale of Notes by the City are subject to the approving legal opinion of Foster Pepper & Shefelman, bond counsel. A copy of the opinion of bond counsel will be delivered with the Notes. Bond counsel has reviewed this document only to confirm that the portions of it describing the Notes and the City's authority to issue them conform to the Notes and the applicable laws under which they are issued. 20 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"), to the extent applicable to an issue of municipal securities with a stated maturity of 18 months or less under paragraph (d) (3) of the Rule, as applicable to a participating underwriter for the Notes, the City will undertake (the "Undertaking") for the benefit of holders of the Notes to provide or cause to be provided, either directly or through a designated agent, to each nationally recognized municipal securities information repository designated by the SEC in accordance with the Rule ("NRMSIR") or to the Municipal Securities Rulemaking Board ("MSRB") and to a state information depository, if any, established in the State of Washington (the "SID"), timely notice of the occurrence of any of the following events with respect to the Notes, if material: (i) principal and interest payment delinquencies; (ii) non- payment related defaults; (iii) unscheduled draws on 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 Notes; (vii) modifications to rights of holders of the Notes; (viii) Note calls (other than scheduled mandatory redemption of Term Notes); (ix) defeasances; (x) release, substitution, or sale of property securing repayment of the Notes; and (xi) rating changes. Amendment of Undertaking The Undertaking is subject to amendment after the primary offering of the Notes without the consent of any holder of any Note, or of any broker, dealer, municipal securities dealer, participating underwriter, rating agency, NRMSIR, the SID or the MSRB, under the circumstances and in the manner permitted by the Rule. The City will give notice 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 in the type of information to be provided. Termination of Undertaking. The City's obligations under the-Undertaking shall terminate upon the legal defeasance of all of the Notes. In addition, the City's obligations under the Undertaking shall 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. 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 of other obligated person to comply with the Undertaking will constitute a default in respect of the Notes. The sole remedy of any holder of a Note 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. 21 UNDERWRITING The Underwriter has agreed, subject to certain conditions, to purchase all of the Notes, if any are purchased, at a price of % of the par value of the Notes, plus accrued interest from the dated date to the settlement date. The Notes will be reoffered at an average price of % of the par value of the Notes. After the initial public offering, the public offering prices may be varied from time to time. CONCLUDING STATEMENT All estimates, assumptions, statistical information and other statements contained herein, while taken from sources considered reliable, are not guaranteed by the City or the Underwriter. So far as any statement herein includes matters of opinion, or estimates of future expenses and income, whether or not expressly so stated, they are intended merely as such and not as representations of fact. The information contained herein should not be consumed as representing all conditions affecting the City or the Notes. Additional information may be obtained directly from the City or the Underwriter. The foregoing statements relating to the Ordinance and other documents are in all respects subject to and qualified in their entirety by provisions of such documents. This Official Statement, starting with the cover page and all subsequent pages, including the appendices, comprise the entire Official Statement, which has been approved by the City. The City has represented to the Underwriter that the portions of this Official Statement directly pertaining to the City neither contain any misrepresentation of material fact nor omit any material fact necessary to understand the financial, economic or legal nature of the City or any information presented herein. 22 AGENDA BILL -- BREMERTON CITY COUNCIL 1. SUBJECT: An Ordinance incressin§ Penalty for Unauthorized use of Disabled Persons Parking FOR AGENDA OF: /- / 7- ~ ORIGINATOR: Ian R. Sieve=~_~j~,~ City Attorney ~ DATE SUBMITTED: December 12, 1995 2. ~LE~RANCES: (Comment on back if necessary) CHIeF. OF POLICE ADMINIST TIVE SERVICES D RECTOR /~OUNCI L COMmITTeE EXHIBITS: Proposed Ordinance Ch. 384, Laws of 1995 ENDORSEMENT ~ INF~TION [] APPROVED BY COUNCIL PRESIDENT FOR SUBMITTAL: 4. SUMMARY STATEMENT AND REQUIREMENT FOR COUNCIL ACTION: The proposed ordinance increases penalty for the parking infraction of parking in a disabled person space from $50 to $175 as required by 1995 state law amendments. 8. RECOMMENDATION: Motion to approve on first reading Ordinance No. Motion to approve on second reading Ordinance No. 9. RESPONSIBLE OFFICIAL: ENFORCEMENT OFFICIAL: EXPIRATION DATE: REVIEW DATE: 10. NOTICE OF ACTION PULLED [] TABLED [] APPROVED [] DISAPPROVED [] AMENDED [] DATE: COUNCIL DIRECTIVE: 11. AGENDA BILL NO.: -oio (OVER) 2 · CLEARANCE COMMENTS: 5. IMPACT OF NON-PASSAGE: Continued fines and time limit regulations. 6. IMPACT ON STAFFING~ BUDGETS, FACILITIES~ EQUIPMENT OR OTHER RESOURCES: 7. RESE/~.RCH SOURCES: PARKING3.AB - Agendas - 1/3/96 ORDINANCE AN ORDINANCE amending the parking code to increase penalties for disabled parking violations; and amending BMC Title 10. THE CITY OF BREMERTON DOES HEREBY ORDAIN: Section 1. Amendment. Section 10.11.030 of the Bremerton Municipal Code is hereby amended to read as follows: 10.11.030 PENALTIES. Unless specifically set forth elsewhere in this title, the penalties for each parking violation of the provisions o this chapter and Chapter 10.04, defined as an infraction, shall be: (h) Physically Disabled (public and private): $59.09 $175.00 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 ,1996. PASSED by the City Council of the City of Bremerton this day of 1996. JOHN E. LAW, Council President APPROVED this day of ,1996. LYNN HORTON, Mayor PARKING3.11t3 - Ordinance Did: 2 - 1/3196 ATTEST: KATHLEEN McCLUSKEY, City Clerk PARK1NG3.1RS - Ordinance Disk 2 - 1/3/96 2 REGULAR SE~'~t I~5~AWS _ Ch. 384, § 1 y dock, designed for pleasure c~.~l The legislature recognizes that the emphasis of state developmental disability services is ~ee, or contract purchaser of singlq~ ,hifting from institutional-based care to community services in an effort to increase, the not exceed two thousand five hur~;:~l~ ~rsonal and social independence and fulfillment of persons with developmental disabilities, ~onsistent with state policy as expressed in RCW 71A. 10.015. It is the intent of the anals, waterways, drains, legislature that financial savings achieved from program reductions and efficiencies within the developmental disabilities program shall be redirected within the program to provide public J or developed as a part of an 'stem waters, including return lands; state owned lands, when such m~~ ;e of the surface of the water; likes, ditches, drains, or other facil~/ eveloped, or utilized primarily as ~.~ ~ed to chapter 90.58 RCW to read ~/ he delineation of wetlands under ~ 7 manual in use on January 1, 1995;, !nited States environmental protection~ ~ protection agency adopt changes ~ ' those changes and may adopt rul~ ~1 to chapter 36.70A RCW to read Mo.pted pursuant to this chapter shall .~ y the department pursuant to section~.~] I to chapter 36.70A RCW to read as ~ed Substitute House Bill No. 1724), ,r city to adopt regulations applicable ~sistent with the provisions of chapter Y SERVICES-- :RVICES a new section to chapter 7lA.10 RCW. ~HE STATE OF WASHINGTON: o chapter 71AA0 RCW to read as ~Gons by.sti~mout or pr/rate community-based services for eligible persons who would otherwise be unidentified or unserved. Approved May 16, 1995. Effective July 23, 1995, 90 days after date of adjournmenL MOTOR VEHICLES--PHYSICALLY DISABLED PERSONS--PARKING PLACES CHAPTER 384 S.B. No. 5873 AN ACT Relating to rai~ing the fine for parking in places reaerved for physically disabled persons; amending RCW 46.16~]81 and 46.08.150; and prescribing penalties. BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF WASHINGTON: Sec. 1. RCW 46.16.381 and 1994 c 194 s 6 are each amended 'to read as follows: (1) The director shall grant special parking privileges to any person who has a disability that limits or impairs the ability to walk and meets one of the following criteria, as determined by a licensed physician: (a) Cannot walk two hundred feet without stopping to rest; (b) Is severely limited in ability to walk due to arthritic, neurological,' or orthopedic condition; (c) Is so severely disabled, that the person cannot walk without the use of or assistance from a brace, cane, another person, prosthetic device, wheelchair, or other assistive device; (d) Uses portable oxygen; -,- (e) Is restricted by lung dise~e 'to such an extent that 'forced ,~piratory resPiratory volume, when measured by SpirometrY is less than one'liter, pe'r.:secdiid or the. .a~r~ oxygen tension is less'than sixty mm/hg on room air at rest;" ' · ':' ";. ~: (9 Impairment by cardiovaSCular disease or cardiac condition 'to the extent, that the person's functional limitations, are classified as class III or IV under standards 'accepted by the American Heart Association; or (g) Has a disability resulting from an acute sensitivity to automobile emissions which limits or impairs the ability to walk. The personal physician of the applicant Shall document that the disability is comparable in severity to the others listed in .t~is. subsection. (2) Persons who qualify for special parking privilege,s are entitled to receive from the department of licensing a removable windshield placard bearing the international symbol of access. The department shall design the placard to be displayed when the vehicle is parked by suspending it from the rearview mirror, or in the absence of a rearview mirror the card may be displayed on the dashboard of any vehicle used to transport the disabled person. Instead of regular motor vehicle license plates, disabled persons are entitled to receive special license plates bearing the international symbol of access for one vehicle registered in the disabled person's name. Disabled persons who are not issued the special license plates are entitled to receive a second special placard. Persons who have been issued the parldng privileges and who are using a vehicle or are riding in a vehicle displaying the special license ' plates or placard may park in places reserved for mobility disabled persons. The director AddiOons.are ind!cated by underline; deletions, bY .sta~kemit..' 1315 Ch. 384, § 1 REGULAR SESSION shall adopt rules providing for the issuance of special placards and license plates to public transportation authorities, nursing homes licensed under chapter 18.51 RCW, boarding homes licensed under chapter 18.20 RCW, senior citizen centers, private nonprofit agencies as defined in chapter 24.03 RCW, and vehicles registered with the department as cabulances that regularly transport disabled persons who have been determined eligible for special parking privileges provided under this section. The director may issue special license plates for a vehicle registered in the name of the public transportation authority, nursing home, boarding homes, senior citizen center, private nonprofit agency, or cabulance service if the vehicle is primarily used to transport persons with disabilities described in this section. Public transportation authorities, nursing homes, boarding homes, senior citizen centers, private nonprofit agencies, and cabulance services are responsible for insuring that the special placards and license plates are not used improperly and are responsible for all fines and penalties for improper use. (3) Whenever the disabled person transfers or assigns his or her interest in the vehicle, the special license plates shall be removed from the motor vehicle. If another vehicle is acquired by the disabled person and the vehicle owner qualifies for a special plate, the plate shall be attached to the vehicle, and the director shall be immediately notified of the tyansfer of the plate. If another vehicle is not acquired by the disabled person, the removed plate shall be immediately surrendered to the director. (4) The special license plate shall be renewed in the same manner and at the time required for the renewal of regular motor vehicle license plates under this chapter. No special license plate may be issued to a person who is temporarily disabled. A person who has a condition expected to improve within six months may be issued a temporary placard for a period not to exceed six months. The director may issue a second temporary placard during that period if requested by the person who is temporarily disabled. If the condition exists after six months a new temporary placard shall be issued upon receipt of a new certification from the disabled person's physician.. The parking placard of a disabled person shall be renewed, when required by the director, by satisfactory proof of the right to continued use of the privileges. (5) Additional fees shall not be charged for the issuance of the special placards. No additional fee may be charged for the issuance of the special license plates except the regular motor vehicle registration fee and any other fees and taxes required to be paid upon registration of a motor vehicle. (6) Any unauthorized use of the special placard or the special license plate is a misdemean- or. (7) It is a +_~-~fic parking infraction, with a monetary penalty of -~-ffy one hundred seventy- five dollars for any person to park a vehicle in a parking place provided on private property wit---bout charge or on public property reserved for physically disabled persons without a special license plate or placard. If a person is charged with a violation, the person shall not be determined to have committed an infraction if the person produces in court or before the court appearance the special license plate or placard required under this section. A local jurisdiction providing on-street parking places reserved for physically disabled persons may impose by ordinance time restrictions on the use of these parking places. (8) The p~'.'cn cf ~- penalty imposed under subsection (7) of this section that is re+"-2;ncd by ~ ~^~ j,,,4o~;,+;^, ,,.a... ~r-w' ~ 4c ~,~n, ~ nn ~r~ '~ ~o n~n '~ ~ n4n or ~ ~n 9~n shall be used by that local jurisdiction exclusively for law enforcement. The court may also impose an additional penalty sufficient to reinqburse the local jurisdiction for any costs it may have incurred in removal and storage of the improperly parked vehicle. (9) It is a misdemeanor for any person to willfully obtain a special license plate or placard in a manner other than that established under this section. Sec. 2. RCW 46.08.150 and 1961 c 12 s 46.08.150 are each amended to read as follows: The director of general administration shall have power to devise and promulgate rules and regulations for the control of vehicular and pedestrian traffic and the parking of motor vehicles on the state capitol grounds. However~ the monetary penalty for. parking a motor vehicle without a valid special license plate or placard in a parking place reserved fo~ physically disabled persons shall be the same as provided in RCW 46.16.381. Such rules and 1316 ~Idilions are indicated by und.rlin.; d.lellons by ~ 1995 LAWS regulations shall be promulgated by state capitol and shall be given su Approved May 16, 1995. Effective July 23, 1995, 90 days after CRIMES--PERS~ AN ACT Relating to persistent prise adding a new section to chapter 9 BE IT ENACTED BY THE L£ NEW SECTION. Sec. 1. A new (1) An inmate of a state correc~i( committed on or after August 1, 1~ the inmate knowingly commits a set B felony, after losing all potential e (2) "Serious infraction" means mL by department of corrections rules (3) "State correctional institution' (4) The crime of persis.tent prison RCW 9A.20.021. The sentence ira! sentence being served at the time t Sec. 2. RCW 9.94A.320 and 199: each reenacted and amended to rea CRIMES INCLUDED XV Aggravated Murder XIV Murder 1 (RCW Homicide by abuse XIII Murder 2 (RCW 9A XII Assault 1 (RCW 9A. Assault of a Child I XI Rape 1 (RCW 9A.44 Rape of a Child 1 (! X Kidnapping 1 (RC~A Rape 2 (RCW 9A.4~; Rape of a Child 2 (~ Child Molestation 1 Damaging building. (RCW 70.74280(1 Over 18 and deliw someone under 1: Additions are ir REGULAR SE~ )lacards and license plates to chapter 18.51 RCW, boarding ters, private nonprofit agencies m with the department as cabulanc~ een determined eligible for speci~ ~ctor may issue special license plat~ sportation authority, nursing home agency, or cabulance service ff tk isabilities described in this section ding homes, senior citizen centers, '.ponsible for insuring that the special' id are responsible for all fines an, his or her interest in the vehicle, the ,hicle. If another vehicle is acquired. bra special plate, the plate shall be liately notified of the transfer of the t person, the removed plate shall be me manner and at the time required ~der this chapter. No special license ~led. A person who has a condition emporary placard for a period not to ~porary placard during that period if the condition exists after six months a new certification from the disabled id person shall be renewed, when ~t to continued use of the privileges. aance of the special placards. No'~ cial license plates except the regular d taxes required to be paid upon special license plate is a misdemean- enalty ,¢ ~, ..... ~ one hundred seventy- ' place provided on private property ysically disabled persons without a, ~ith a violation, the perSon shall not son produces in court or before the ~quired under this section. A local. for physically disabled persons may~ ;e parking places. (7) of this section t~ , ~ Go Mn ^~ Qr oa ~a shnll be used ~t. The court may also impose an sdiction for any costs it may have .~d vehicle. dna special license plate or placard on. .~ each amended to read as follows:~ · to devise and promulgate rules and traffic and the parking of motor netary penalty for parking a motor t in a parking place reserved for in RCW 46.16.381. Such rules and etions by ~995 .ws Ch. 385, § 2 regulations shall be promulgated by publication in one issue of a newspaper published at thc state capitol and shall be given such further publicity as the director may deem proper. Approved May 16, 1995. Effective July 23, 1995, 90 days after date of adjournment. CRIMES--PERSISTENT PRISON MISBEHAVIOR CHAPTER 385 S.S.B. No. 5905 AN ACT Relating to persistent prison misbehavior;, reenacting and amending RCW 9.94A.320; adding a new section to chapter 9.94 RCW; and prescribing penalties. BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF WASHINGTON: NEW SECTION. Sec. 1. A new section is added to chapter 9.94 RCW to read as follows: (1) An inmate of a state correctional institution who is serving a sentence for an offense committed on or after August 1, 1995, commits the crime of persistent prison misbehavior if the inmate knowingly commits a serious infraction, that does not constitute a class A or class B felony, after losing all potential earned early release time credit. (2) "Serious infraction" means misconduct that has been designated as a serious infraction by department of corrections rules adopted under RCW 72.09.130. (3) "State correctional institution" has the same meaning as in RCW 9.94.049. (4) The crime of persistent prison misbehavior is a class C felony punishable as provided in RCW 9A.20.021. The sentence imposed for this crime must be served consecutive to any sentence being served at the time the crime is committed. Sec. 2. RCW 9.94A.320 and 1994 sp. s. c 7 s 510, 1994 c 275 s 20, and 1994 c 53 s 2 are each reenacted and amended to read as follows: TABLE 2 CRIMES INCLUDED WITHIN EACH SERIOUSNESS LEVEL · XV · Aggravated. Murder 1 (RCW 10,95.020) XIV . Murder 1 (RCW 9A.32.030) ' Homicide by abuse (RCW 9/L32.055) XIII Murder 2 (RCW 9A.32.050) XII Assault 1 (RCW 9A.36.011) 'Assault of a Child 1 (RCW 9A.36.120) XI Rape 1 (RCW 9A.44.040) Rape of a Child 1 (RCW 9A.44.073) X Kidnapping 1 (RCW 9A.40.020) Rape 2 (RCW 9A.44.050) Rape of a Child 2 (RCW 9A.44.076) Child Molestation 1 (RCW 9A~44.083) Damaging building, etc., by explosion with threat to human being (RCW 70.74280(1)) Over 18 and deliver heroin or narcotic from schedule I or II to someone under 18 (RCW 69.50.406) Additions are indicated by underline; deletions by stdkaout 1317 AGENDA BILL BREMERTON CITY COUNCIL 1. SUBJECT: Public Hearing Resolution #~0;5'$S , regarding recovery of fees for the removal of garbage on the property located at 1340 Hayward Avenue. FORAGENDA OF: January 17, 1996 ORIGINATING DEPT: Building Dept. ORIGINATOR: Janet Lunceford DATE SUBMITTED: 2. CLEARANCES: (Comment on back if 3. necessary) City Clerk: ~ CityAttor~j~~~ -A City Treasurer.~ ~ EXHIBITS: 1. Resolution 2. Clerk Report ENDORSEMENT ~"iNFOI~MATION__ APPROVED BY COUNCIL P~ID.E~N~MITTAL: 4. SUM~Y STATEMENT ~D ~QUI~MENT FOR COUNCIL ACTION: On 11/29/95, ~e Ci~s forced to remove ~b~e ~d debris ~om ~e prope~ lo,ted at 1340 Ha~rd Avenue, a~er ~e o~er, Danid C. Stenson, ~ed to ob~ a Noti~ and Order to Remove Re~se ~N 72 Ho~s. The abatement ~d ~s ~g~ $319.80 for ~e work RECOMMENDATION: It is recommended that Council, by resolution # ~ S- 3~-q , order that the fees incurred for the abatement of the garbage and debris at 1340 Hayward Avenue, be collected as reasonable abatement costs, and become a personal obligation against the owner of the property, Daniel C. Stenson, which if not collected within 30 days will become a lien against the property. 9. RESPONSIBLE OFFICIAL: Scott Erickson ENFORCEMENT OFFICIAL: Scott Erickson EXPIRATION DATE: N/A REVIEW DATE: N/A PULLED TABLED COUNCIL DIRECTIVE: 10. NOTICE OF ACTION APPROVED DISAPPROVED 6/0 AMENDED DATE: 1. AGENDA BILL NO.: 2. CLEARANCE COMMENTS: o IMPACT OF NON-PASSAGE: The City would forfeit the costs of this abatement. o IMPACT ON STAFFING, BUDGETS, FACILITIES, EQUIPMENT OR OTHER RESOURCES: The City's revolving abatement fund would suffer the deficit of not collecting these funds. o RESEARCH SOURCES: N/A RESOLUTION # A RESOLUTION reviewing charges for the abatement of garbage and debris on the property at 1340 Hayward Avenue and determining means of collection. WHERFa~, the City of Bremerton incurred costs for the removal of garbage and debris at 1340 Hayward Avenue, Bremerton; and WHERF_~S, the Bremerton Municipal Code allows the City to recoup these costs by personal obligation against the property owner, which if not collected within 30 days will become a lien against the property; and WHEREAS, the City Council is charged with determining whether the fees are just and has considered the report of charges filed by the Building Official and any protests or objection filed; now, therefore, BE IT RESOLVED, by the City Council of the City of Bremerton: That the City of Bremerton confirms the Building Official's report of charges as correct and just charges for garbage and debris removal from 1340 Hayward Avenue, Bremerton and directs the City Attorney to collect the charges as a personal obligation against the owner, Daniel C. Stenson, which if not collected within 30 days shall become a lien against the property. PASSED, by the City Council of the City of Bremerton this 1996. day of JOHN LAW Council President CITY OF BREMERTON * 239 4th Street * Bremerton, WA 98337 Memorandum DATE: TO: FROM: RE: CC: January 2, 1996 Kathleen McCluskey, Dir. of Admin. Svcs. Janet Lunceford, Building Department.~ Garbage abatement fees, 1340 Hayward Avenue Don Pratt, Scott Erickson On November 29, 1995, the Street Department removed garbage and debris from the property located at 1340 Hayward Avenue, after the owner, Daniel Stensort, failed to obey the Order to Remove Refuse within 72 Hours posted on the property on November 21, 1995. The fees incurred are as follows: Street Dept. Fees $264.40 Administrative Fees $ 55.40 Total Fees $319.80 I have scheduled a public hearing for January 17th and will submit an agenda bill for your approval. Celebrating 50 Years of Freedom .d .Dec PAGE Date 6, 1995 2:03 pm - City of Bremerton - Streets -- Billing Details Street Department Summary of Services for : November 1995 W.O. : Description Regular Overt[me 11/17/95 SD950284 REMOVE FENCE SE CORNER LOXIE/ARSENAL COLEN COREY HADLEY KENTNER '94 JD410 BACKHOE '90 INT. 5 YARD DUMP TRUCK 11/20/95 SD950284 REMOVE FENCE SE CORNER LOXIE/ARSENL COLEN COREY '90 INT. 5 YARD DUMP TRUCK DUMP FEES FOR 1995 4.0 hr 3.0 hr 4.0 HR 3.0 HR 2.0 hr 2.0 HR 10.0 YD 11/21/98 SD950284 HAUL DEBRIS FROM REMOVAL OF FENCE SE CORNER LOXIE/ARSENAL JAY-PEE BAGE 2.0 hr '90 INT. 10 YARD DUMP TRUCK 3.0 HR DUMP FEES FOR 1998 10.0 YD 11/27/95 SD950288 ABATEMENT AT 833-10TH STREET/CLEAN YARD/DEBRIS STEVE BOWMAN ?.0 hr COLEN COREY 2.0 hr HADLEY KENTNER 7.0 hr RILEY THOMPSON 1.0 hr '§1GMC S-15 4X4 EXT. CAB P/U 1.0 HR '94 JD410 BACKHOE 3.0 HR '90 INT. 5 YARD DUMP TRUCK ?.0 HR '92 GMC I-TON P/U 2.0 HR DUMP FEES FOR 1995 15.0 YD 11/28/95 SD950286 ABATEMENT AT 1915-10TH STREET/CLEAN UP GARBAGE BILL EDWARDS 3.0 hr '93 GMC 1-TON DUMP 3.0 HR HADLEY KENTNER 4.0 hr '94 JD410 BACKHOE 2.0 HR '90 INT. 10 YARD DUMP TRUCK 4.0 HR RILEY THOMPSON i.0 hr '91 GMC S-15 4X4 EXT. CAB P/U 1.0 HR DUMP FEES FOR 1995 10.0 YD 11/28/95 SD950291 ABATEMENT AT 1340 HAYWARD AVE. HAUL OFF DEBRIS BILL EDWARDS 3,0 hr '90 DODGE 1-TON (DIESEL) 3.0 HR _11/28/95 SD950290 ABATEMENT AT 3323 KITSAP WAY (BANNER CAR WASH) CLEAN UP DEBRIS BILL EDWARDS '90 DODGE 1-TON (DIESEL) 11/29/95 SD950291 ABATEMENT AT 1340 HAYWARD AVE. REMOVE DEBRIS BILL EDWARDS '93 GMC 1-TON DUMP RILEY THOMPSON '91GMC S-15 4×4 EXT. CAB P/U DUMP FEES FOR 1995 3.0 hr 3.0 HR 2.0 hr 2.0 HR 1.0 hr .... 1.0 HR '7.0 YD BLAB Costs 104.00 ?8.00 128.00 39.00 52.00 26.00 82.00 52.00 78.00 82.00 182 O0 52 O0 182 00 26 O0 6 O0 96 00 91 00 i8 00 123 O0 78.00 27.00 104.00 64.00 104.00 26.00 6.00 82.00 78.00 _ 27.00 78.00 _27,00 52.00 18.00 26.00 6.00 57.40 $2,357.40 1. SUBJECT: Public Hearing Resolution # ~$~ ~ , regarding recovery of fees for the removal of garbage on the property located at 3323 Kitsap Way. AGENDA BILL BREMERTON CITY COUNCIL FORAGENDA OF: January 17, 1996 ORIGINATING DEPT: Building Dept. ORIGINATOR: Janet Ltmceford DATE SUBMITTED: 2. CLEARANCES: .(Comment on back if 3. EXHIBITS: necessary) 1. Resolution # City Clerk: ~ ~ 2. Clerk Report City Attorn~ City Treasure; ENDORSEMENT 5('iNFDRMATiON APPROVED BY COUNCIL PRESIDENT FOR SUBMITTAL: MAYOR~ -~, 7,/.-,/',-- -- COUNCIL PRESIDENT 4. SUMMARY STATEMENT AND REQUIREMENT FOR COUNCIL ACTION: On 11/28/95, the City was forced to remove garbage and debris from the property located at 3323 Kitsap Way, after the owners, Lloyd and Paula Anderson, failed to obey a Notice and Order to Remove Refuse within 72 Hours. The abatement fund was charged $160.40 for the work. RECOMMENDATION: It is recommended that Council, by resolution #~ ff'.RL, , order that the fees incurred for the abatement of the garbage and debris at 3323 Kitsap Way, be collected as reasonable abatement costs, and become a personal obligation against the owners of the property, Lloyd and Paula Anderson, which ff not collected within 30 days will become a lien against the property. 9. RESPONSIBLE OFFICIAL: Scott Erickson ENFORCEMENT OFFICIAL: Scott Erickson EXPIRATION DATE: N/A REVIEW DATE: .N/A PULLED TABLED COUNCIL DIRECTIVE: 10. NOTICE OF ACTION APPROVED ~ DISAPPROVED AMENDED DATE: 1. AGENDA BILL NO.: q -Ol L 2. CLEARANCE COMMENTS: o IMPACT OF NON-PASSAGE: The City would forfeit the costs of this abatement. 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 abatement of garbage and debris on the property at 3323 Kitsap Way and determining means of collection. WHEREAS, the City of Bremerton incurred costs for the removal of garbage and debris at 3323 Kitsap Way, Bremerton; and WHERFa~, the Bremerton Municipal Code allows the City to recoup these costs by personal judgment against the property owner, which if not collected within 30 days will become a lien against the property; and WHEREAS, the City Council is charged with determining whether the fees are just and has considered the report of charges filed by the Building Official and any protests or objection filed; now, therefore, BE IT RESOLVED, by the City Council of the City of Bremerton: That the City of Bremerton confirms the Building Official's report of charges as correct and just charges for garbage and debris removal from 3323 Kitsap Way, Bremerton and directs the City Attorney to collect the charges as a personal obligation against the owners, Lloyd and Paula Anderson, which if not collected within 30 days shall become a lien against the property. PASSED, by the City Council of the City of Bremerton this 1996. day of JOHN LAW Council President CITY OF BREMERTON · 239 4th Street · Bremerton, WA 98337 Memorandum DATE: TO: FROM: RE: CC: January 2, 1996 Kathleen McCluskey, Dir. of Admin. Svcs. Janet Lunceford, Building Department..-~ Garbage abatement fees, 3323 Kitsap Way Don Pratt, Scott Erickson On November 28, 1995, the Street Department removed garbage and debris from the property located at 3323 Kitsap Way, after the owners, Lloyd G. and Paula Anderson, failed to obey the Order to Remove Refuse within 72 Hours posted on the property on November 21, 1995. The fees incurred are as follows: Street Dept. Fees $105.00 Administrative Fees $ 55.40 Total Fees $160.40 I have scheduled a public hearing for January 17th and will submit an agenda bill for your approval. · Celebrating 50 Years of Freedom ~ate 6, 1995 4:16 pm Customer Description ! Uity of Bremerton - Streets Work Order History Regular Overtime PAGE ~ 1 Costs Work Order g :SD950290 Title :BLAB 3323 KITSAP WAY (BANNER CAR WASH) Status :S Customer :BLAB Work Type :AO Foreman :225 Lead Employee:233 Priority : Date Targeted: Date Entered :11/29/95 Date Assigned:Il/29/95 Date Started :11/28/95 Date Finished:!l/28/95 Labor Hours Est: 0 Materials Est : $0 Equipment Est : $0 Location :N4014280 11/28/95 BLAB BLAB ABATEMENT AT 3323 KITSAP WAY (BANNER CAR WASH) CLEAN UP DEBRIS BILL EDWARDS 3.0 hr '90 DODGE 1-TON (DIESEL) 3.0 HR 78.00 27.00 SUMMARY FOR W.O. ~ SD950290 Labor $78.00 Benefits $0.00 Equipment $27.00 Materials $0.00 Sales Tax $0.00 Total $105.00 3.0 hfs .0 hfs $105.00 Use Tax $0.00