HomeMy WebLinkAbout12/11/96 AGENDABREMERTON CITY COUNCIL
239 4TH STREET
BREMERTON, WA 98337
CITY COUNCIL AGENDA
DECEMBER 11t 1996
2 o
CALL TO ORDER - 5:30 P.M.
A. Pledge Of Allegiance
B. Invocation
CONSENT AGENDA
Items listed below have been distributed to Council members in
advance for study and will be enacted by one motion. If
separate discussion is desired on an item, it may be removed
from the Consent Agenda and placed on the Regular Agenda at
the request of a Council member. ~
A. Minutes - November 26, 1996 #AB96-278
B. Amended Professional Services Contract for #AB96-279 ~
retained Counsel - Foster, Pepper & Shefelman
3. CLAIMS/CHECK REGISTERS
4. COUNCIL MEMBER REPORTS
5. MAYOR'S REPORT
6. PUBLIC RECOGNITION -- (Comments Limited to 3 Minutes)
NEW BUSINESS
A. 10% Petition/Letter Of Intent to Annex The
Area Known As The Oyster Bay Avenue Area
B. Approval Of Admiral Theater 108 Loan
RESOLUTION
A. Resolution #2574, Authorizing An Interfund
Loan From The Water Fund to The Wastewater
Fund
ORDINANCES
A. Ordinance #4579
The 1997 Budget
(Second Reading) Adopting
#AB96-280 [~
#AB96-285 2~
#AB96-281 75
#AB96-276 7~
(CONTINUED NEXT PAGE)
B. Ordinance (First Reading) Amending The 1996
Budget
#AB96-282~
10.
PUBLIC HEARING - 6:00 P.M. OR LATER
A. Werner Road Annexation 75% Petition; And
Ordinance (First Reading)
SR3/SR304 Bremerton Ferry Terminal To Gorst
Transportation Projects Re-evaluation Of
SR304 Access Between The Charleston District
And Downtown
1. SUBJECT:
AGENDA BILL
BREMERTON CITY COUNCIL
MI~qUTES - NOVEMBER 26, '1996
FOR AGENDA OF:
ORIGINATING DEPT:
ORIGINATOR:
DATE SUBMITTED:
12-11-96
~zty ~ounc±±
John Law, President
2. C~_~: (comment on back
if necessary)
ENDORSF-/4ENT __ INFOP2iATION __ CoIINCIL PRESID~//~''~---~
MAYOR
4. sU~Y STATEMENT AND REOUIREIqENT FOR'COUNCIL ACTION:
8. COM24ENDATION:
9 o
RESPONSIBLE OFFICIAL:
ENFORCEMENT OFFICIAL:
EXP!P. ATION DATE:
REVIEW DATE:
PULLED TABLED
COUNCIL DIRECTIVE:
10. NOT%CE OF
APPROVED __
ACTION
DISAPPROVED
11. AGENDA-~!LL
TAPE #1424
UNAPPROVED DRAFT
CITY cOUNCIL MEETING MINUTES
NOVEMBER 26, 1996
#0083
#0115
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, November 26, 1996, at 5:30 P.M.,
with Council President John Law presiding. Council members present
were Bob Winters, Carlos Montgomery, David Farr, Richard Neville,
Lon Overson, Cecil McConnell, and A1 Colvin. Councilman Sherril
Huff-Menees was absent. Also present were City Attorney Ian
Sievers and Acting city Clerk Paula Johnston.
The meeting opened with the Pledge of Allegiance led by Council
President Law and Invocation given by Chaplain Ben Belcher of
Harrison Memorial Hospital.
President Law made the following announcements:
(1) Council concluded an Executive Session prior to the
meeting where they discussed "potential litigation".
Council
(2) Immediately following the Council meeting the City Council will
hold a Study Session to discuss "review proposed 1997 Budget".
CONSENT AGENDA
A. Minutes of Meeting - November 13, 1996
Bo
Resolution No. 2572, Establishing
December 11, 1996 as a Public Hearing Regarding
SR3/SR304 BREMERTON Ferry Terminal to Gorst
Transportation Re-Evaluation of SR304 Access
Between the Charleston District and Downtown
#AB96-267
#AB96-268
M/S/C/U(Neville/Montgomery) to approve 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/Montgomery) on November 26, 1996, the Council does
approve for payment those vouchers included and further described
as follows: EFT, 203772 - 203935 in the amount of $1,083,827.81;
and Retirees' Payroll for the period ending 11-30-96, in the amount
of $103,619.32.
COUNCIL MEMBER REPORTS
Mr. Colvin referenced a letter from Joe Mentor relating to the
TAPE #1424
City Council Reg. Mtg. Minutes
November 26, 1996
Page 2 of 10
Naval Museum and how it might be developed into a more interactive
and updated museum facility. Mr. Colvin felt Mr. Mentor had some
good suggestions for the museum and even suggested a new name -
Northwest Naval Institute. He also suggested an admittance fee of
no less than $1.00 for adults with children and senior citizens
being free. He received a letter from Oliver Smith regarding
placement of signs at the entrances of the city, which he will
forward on to Mayor Horton. After reading a recent newspaper
articles about the City's funding various agencies using
Hotel/Motel Tax funds, he hopes Council will look very carefully at
the distribution of those funds. He referenced a memorandum he
received from Del Knauss addressing the City's action to tax
garbage services at a rate higher than allowed under RCW 35.21.710.
He asked the City Attorney to comment on Mr. Knauss' concern.
Sievers, city Attorney, stated this would be the third consecutive
week that he addressed that issue. He emphasized it is subject to
some interpretation, but it is the City's position along with other
Washington cities that 90% of them charge between 5-10% tax rather
than .2%, which that argument would suggest as the legal limit.
Mr. Colvin he welcomed his daughter Althea and his sister-in-law,
who are visiting from California.
Mr. M¢Connell stated some months ago he made a report about parking
lot sweeping noise. He wanted to alert everyone that the noise
continues waking up people during early morning hours. Effort is
under way to bring about a change in the City's Noise Ordinance,
but the process is moving rather slowly.
Mr. Overson wished everyone a Happy Thanksgiving.
Mr. Farr referenced an editorial in The Sun where the city was
taken to task for the proposed allocation of Hotel/Motel Tax funds,
in particular emphasizing the city should be devoting considerable
amount of those funds to the visitor and Convention Bureau (VCB).
He pointed out the discussion is not over for the allocation of
those funds and the author of the article, Brian Stallcop, Managing
Editor, left out several pertinent facts and emphasized, as usual,
only negative sides. The pertinent facts are: (1) the City is
obligated to get the taxpayers the most for their money and that is
one of the considerations. Council heard presentations by many
local business owners, including hotel/motel owners, which will be
taken into account at the time the decision is made. The
implication in the newspaper editorial was that the City was
turning its back on tourism, which he assured everyone is not the
case. He personally would dearly like to increase tourism in this
area and it is important that the Hotel/Motel Tax dollars are spent
in the most effective way. The article also forgot to mention that
the Council is trying to adopt a performance related dispersal of
the funds and that there have been problems in the past. He has a
TAPE #1424
city Council Reg. Mtg. Minutes
Nove~lber 26, 1996
Page 3 of 10
greater concern in the long continuing trend of The Sun to "bash"
BREMERTON, which he does not understand. He stopped being naive to
think that newspapers were non-political entities and that they
didn't have partisan views, which was evidenced before the recent
election. He emphasized the city is not a partisan organization
and he could see no purpose of a local paper attacking on a
frequent basis the largest community in the area. He feels
strongly that kind of attitude is something that comes about when
there is a lack of competition. He challenged the management staff
at The Sun to work with the City. He emphasized his comments are
not being directed toward the newspaper reporters, but rather the
management staff, who make the decisions as to what is finally
printed.
Mr. Montqomer~ reported he had another opportunity to witness the
Bremerton Police Department at work on Tuesday evening, where a
simple speeding infraction turned into a chase through the West
Bremerton neighborhood. In an attempt to allude the Police, the
culprit stopped his vehicle at the top of a T-intersection, jumped
out and ran down the hill attempting to escape. The Police officer
on the scene called for backup that resulted in several Patrol
units responding and within 10 minutes the Kitsap County K-9 unit
arrived on the scene. He was pleased to report that within 30
minutes the culprit was in custody. Not only did the Bremerton
Police force work efficiently, but they have good rapport with the
Kitsap County Sheriff's Department. In reference to the Editorial
article in The Sun regarding the Hotel/Motel Tax allocation, in his
opinion the newspaper twists information any way they want It is
too bad that the only major daily newspaper in Kitsap county has to
be so bias towards the city of Bremerton that they have stooped so
low as to print what they purport to be facts. The last paragraph
of the article really caught his eye: "Bremerton seems to suffer
from an inferior complex. Given the opDortunit¥ to Dla¥ in the biq
leaques, it runs the other way." Mr. Montgomery disagreed with
that statement and the truth of the matter is Bremerton has started
to play in the big league and that does not fit into the image of
Bremerton that The Sun newspaper wants to portray. Whether the VCB
gets funding from the Hotel/Motel Tax should be based solely on
their efforts put forth to promote Bremerton; however the VCB's
prior administration failed in that endeavor. The question now is
if the City of Bremerton allocates funds to the VCB, how much
effort will the VCB exert to this end?
Mr. winters stated he would reserve his comments regarding his
opinion of the Turner Joy as it related to a recent newspaper
article and the allocation of Hotel/Motel Tax revenues. He wished
everyone a happy and safe Thanksgiving.
MAYOR'S REPORT
TAPE #1424
city Council Reg. Mtg. Minutes
November 26, 1996
Page 4 of 10
Mayor Lynn Horton stated she believes The Sun has every right to
print editorials, but she believes they have the opportunity to
frame issues. An example of that action was the position the
newspaper took on the issue of parking on planting strips. Yes,
the City is making an effort to remove parking off of planting
strips and that has to do with several issues, among them is the
State's change in sidewalk liability being passed onto the City, if
the City allows conditions to occur that damage sidewalks.
There is a flip side to this coin and not just the city moving in
and taking over what people perceive as their constitutional and
property rights. In looking at the Park Avenue area where the City
has instituted the removal of parking on planting strips, the
average speed of vehicles traveling in that area has been reduced
by 3 MPH, but what is even more significant is that in a given time
frame if there were 20 vehicles going over the speed limit at this
point that number has been reduced to 3. There are benefits to the
neighborhoods, i.e. increased safety along the traffic corridors.
There is also an opportunity to beautify the corridor instead of
having a mishmash of concrete, mud, ruts, gravel and grass, it
gives the neighborhood an opportunity to do something beyond what
they have currently been doing. She contacted Mike Phillips and
left a message that she would like an opportunity to meet with the
Editorial staff because she believes it is easy to take an issue
and read what a reporter has to say and make a decision based on
what the reporter conveys. Generally, issues are not that "black
and white" and she would like the opportunity to give her opinion
on issues before they print their position. In the case of the
Visitor and Convention Bureau (VCB), it is not just the City of
Bremerton that is questioning the efforts of the VCB. The city is
trying to get a message across to the VCB and possibly they should
look at themselves to see whether or not they are doing the job
they are tasked with for the community. They do have a very
limited view point from the hotels prospective; however, there is
a broader issue beyond that aspect. If Mr. Phillips allows her to
meet with the Editorial Board, those are the comments she will make
so that they will have the opportunity to frame people's
impressions so that they could give a fuller view of what is going
on and provide a service to the community and not just from a
negative standpoint that it will sell newspapers. She re-
emphasized the newspapers do have the right to editorial comment
and when the City doesn't do a good job, they also have the right
to hold the city accountable. In this regard, she wants to hold
them equally accountable because she believes they have a service
to the public.
Mayor Horton proclaimed December 1, 1996, as WORLD AIDS DAY. Pam
Leisure, Executive Director of the West Sound Chapter American Red
Cross, accepted the Proclamation and reminded everyone of the 3rd
annual Candle Light Vigil, at the City Hall Park, December 1, 1996,
5
TAPE #1424
City Council Reg. Mtg. Minutes
November 26, 1996
Page 5 of 10
7:30 P.M., hosted by the West Sound Chapter American Red Cross,
followed by a social at the Roxy Theater.
Mayor Horton wished Hazel and A1 Colvin "Happy 50th Wedding
Anniversary".
PUBLIC RECOGNITION
GordBy~ commented on the various free dinners being served in
the community during the week of Thanksgiving.
Del Knauss, Bremerton resident, wished everyone a Happy
Thanksgiving. He referenced a newspaper article about "Area's
retail economy sees tight times", which makes him wonder about the
proposed waterfront project. He hoped someone is paying attention
to what the Sinclair landing Association is doing on the proposed
downtown development. He also felt there might be need to bring in
additional consultants into the waterfront project in order to make
sure it is economically feasible and would have a strong support
base to sustain it. He did not want to see everyone's dream turn
into a nightmare for the taxpayers. Lastly, he submitted the
following three questions: (1) How much money has the City of
Bremerton paid out to the garbage company since curbside recycling
started, broken down by year? (2) What is the amount of salary
within their present pay grade for all Department Heads and
benefits paid for by the taxpayer? (3) How much money has the
City paid to Parametrix over the last five years, broken down by
project and year? President Law stated Mr. Knauss' questions will
be routed to the appropriate departments and the answer will be
routed back through the Council office.
7A - NEW PHONE SYSTEM FOR PARKS FACILITY AT SHERIDAN PARK, ~AB96-
269
$5,000.00 was originally budgeted in 1996 for an electronics key
phone system to replace the existing key system at the Parks
Department headquarters. Due to costs savings realized by the city
in facilities capital projects, there is enough left over money for
the purchase of a small PBX (Private Branch Exchange), the best
long term solution for both phone service and computer networking
services. This will meet all current and any future phone needs.
This system also integrates with the city Hall phone system as it
is made by the same manufacturer, NorTel, formerly known as
Northern Telecom. Written quotes were requested from NorTel
distributors in the area, Sprint, GTE, and U.S. West. The lowest
quote received was from U.S. West, and was for $15,768.27. A
summary of all the quotes received is provided on the attached
Quote Tabulation Form.
Bob Tulp, Public Works Operations Manager, stated he would standby
for any questions Council might have.
TAPE #1424
city Council Reg. Mtg.
November 26, 1996
Page 6 of 10
Minutes
Public comment - none.
Mr. Colvln asked Mr. Tulp to explain the benefit of this proposal.
Mr. Tulp explained the Parks Department has one of the oldest phone
systems within the City and their department receives lots of calls
through their dispatch person in the front office. Their system
does not have voice mail capability as do other Departments within
the City and it is very hard to build on to their current system.
What is proposed is a general maintenance approach to get their
system in tune with the rest of the City's system.
Mr. Overson stated he believed the Budget Control Ordinance
provides that any time more than $10,000 worth of changes are made
to the budget a Budget Adjustment is required. He was concerned
that a budget adjustment request was not included in the
documentation and asked if one would be coming to Council at a
later date? He pointed out funding for this proposal was from four
separate sources and consolidated under a single line item. He
believes under State requirement that action would require a budget
adjustment Mr. Hanna stated as discussed in Committee meetings,
there is one project within a given Department's capital budget
that is in excess of the original appropriation. What is being
proposed is to utilize the saving from other capital projects in
the same Department's budget and apply those savings to this
project, which is coming in at a higher cost than the original
estimate. For that reason, the total capital budget in the General
Facilities Department does not need to be increased. If a Budget
Adjustment Request was prepared, it would simply be increasing and
decreasing the same line of the budget. Mr. Overson stated he
disagreed with Mr. Hanna based on the fact on one side there will
a reduction from three accounts, but on the other side there will
be just the consolidation of the money into one account, which is
what he was looking at as the meaningful part of this action. To
follow Mr. Hanna's reasoning, he could consolidate $100-200,000 by
picking little pieces all over the budget and that is not the
intent of the Budget Ordinance. Mr. Hanna stated his point was
the little pieces that are being dealt with are not all over the
budget, but are in the General Facilities Department of the General
Fund. He pointed out similar discussions have been held in the
context of the Utilities that there is not an expectation that
we're right on the nose with each of those individual projects, but
will monitor them and advise Council of the available cash and
appropriations will fund all of the projects on the list. It is in
following that theory that this item is presented in the form
shown. Mr. Overson stated he personally did not agree with that
reasoning saying the budget is just a practice document and what
counts is whether or not there is any money left. He feels
strongly that budgeting needs to be done to a closer level of
detail and that is what the Budget Control Ordinance intends.
TAPE #1424
city Council Reg. Mtg. Minutes
November 26, 1996
Page 7 of 10
Mr. Winters questioned the $3,899.60 figure of unused funds from
the City Hall security system and what is the intent to replenish
the security system? Mr. Tulp explained the security system speaks
to the panic buttons installed throughout the City. Funds are
returned to the General Fund, if they are not reallocated.
#1295
M/S/C(Neville/Farr) to authorize reallocation of funds and
authorize purchase of new phone system for Parks Department in the
amount of $15,768.27 from U.S. West.
Vote on motion:
Motion carried.
In favor: McConnell, Colvin, Winters,
Farr, Neville, Law
Opposed: Overson
Montgomery,
7B - POLICE/SPECIAL PROJECTS 110 FUND -- REQUEST FOR APPROVAL OF
BUDGET ADJUSTMENT REQUEST ~96-31t ~AB96-270
It is requested that City Council approve the transfer of $6,400.00
to 110 Capital Outlay to facilitate purchase of computer equipment.
Mayor Lynn Horton state there have been some changes in the
Community Resources office; therefore, they have a need for
computer equipment to carry out their responsibilities.
Public comment - none.
Mr. Winters questioned why this item was not brought before the
Operations Committee? Mayor Horton explained when an issue is
primarily fiscal it is presented to only the Fiscal and Budget
Committee.
Mr. Overson reported during the Fiscal and Budget Committee meeting
many questions were asked and the funds have been thoroughly
audited to be appropriate and available for this application.
Mayor Horton stated she encouraged staff to look at their computer
needs city wide; however, the Community Resource Office was not
included when earlier action was taken to upgrade the city-wide
computer system. It was felt that in order to do their job they
needed to go forward with this request.
#1380
M/S/C/(Farr/Montgomery) to approve Budget Adjustment Request No.
96-31.
Vote on motion:
Motion carried.
In Favor:
Opposed:
Farr, Neville, Overson,
Colvin, Montgomery, Law
Winters
McConnell,
7C - BUDGET ADJUSTMENT REQUEST -- OLYMPIC COURSE AT GOLD MOUNTAIN,
TAPE #1424
City Council Reg.
November 26, 1996
Page 8 of 10
Mtg. Minutes
~AB96-271
This adjustment provides for the opening of the Olympic Course at
Gold Mountain in September of this year. The original budget had
assumed that the Olympic Course would not open until April of 1997.
Rich Hanna, City Treasurer, stated as Council may recall, the
current city budget was prepared with the assumption the Olympic
Course at Gold Mountain would not open until April 1997; however,
that was not the case and the course opened in mid September 1996.
The proposed Budget Adjustment recognizes that incremental revenue
and the incremental expenses associated with opening the Olympic
Course and shifting the maintenance of the course off the capital
budget onto the operating budget in September 1996. The
incremental greens fees are $265,000 and it is proposed to increase
the Pro and maintenance budget by $50,000 and $100,000
respectively, transferring $17,000 to the Parks Facilities
Construction Fund, and the balance beyond that split evenly between
the Pendergast Park Construction Fund and retain cash in the Golf
Course Operation
Public comment - none.
Mr. Overson stated he found it exciting to see the City supporting
a significant project for the Pendergast Regional Park. Jim
Spencer, Parks and Recreation Director, stated the project
referenced is the continuing development of Pendergast Regional
Park and the $49,000 allocated will be used to pursue development
of the lights for the five existing fields. He noted the $49,000
will not cover the entire cost, but is good seed money towards
getting that project underway.
Mr. Fart noted during the discussion of this issue at the Fiscal
and Budget Committee, Mr. Spencer had commented that the seed money
could be used as an opportunity for in-kind donations of services
or additional funds to get the project fully funded. Mr. Spencer
stated he has had discussion with individuals in the private sector
that if the City can figure out a way to buy the light poles and
light systems (including all the hardware) there are individuals
ready to assist with in-kind donations to finish the project.
Mr. McConne11 asked if the $265,000
September/October/November with an estimate for
Spencer stated it covers the total to year end.
figure covers
December? Mr.
Mr. Neville pointed out once again this is a way to see how one
project can help another project. The golf course has always
supported the Parks Department's programs; and Mr. Spencer just
stated how the community keeps on giving to help make the City's
park system so much better by either in-kind services or supporting
#1661
TAPE #1424
city Council Reg. Mtg. Minutes
November 26, 1996
Page 9 of 10
the golf course in this manner to help other projects.
Mr. Winters asked if the golf course project was following the
projected proforma? Mr. Hanna stated yes.
M/S/C/U(Neville/Overson) to approve Budget Adjustment Request No.
96-33.
8A - RESOLUTION NO. 2571, SETTING FEES FOR GOLD MOUNTAIN GOLF
COURSE AND REPEALING RESOLUTION NO. 2532~ ~AB96-272
In order for the city's Gold Mountain Golf Course to remain
financially sound through the current period of expansion and on
into the future, it is necessary to implement fee changes on a
regular basis. As has been demonstrated through the financial
modeling of the course expansion, a rate of increase of
approximately three percent over inflation is required for the
course to remain financially sound. Fees at the course were last
changed January 1, 1996. The proposed fee changes will increase
course revenue by approximately 3.1 percent.
Jim SDencer, Parks and Recreation Director, stated he believes the
proposed fee is actually good news from the standpoint that the
only rate that will be changed is the 18-hole rate, which has two
components...a weekday rate and a weekend rate. The proposal is to
adjust each of those rates by $1.00. The current rate for the
Cascade Course is $19.00 weekday and $23.00 weekend, which will
change to $20.00 and $24.00 respectively following the $1.00
increase. The proposed rate increase for the Olympic Course is
that rate plus $5.00. Most significantly the proposal favors the
local golfers by retaining the same rates for the annual, semi-
annual punch cards and all the discount rounds. The only other
change is relative to the use of private carts on the course. For
a number of years there has been an annual cart fee available to a
very small group of people, who have been grandfathered to use
their private golf carts at an annual fee of $100.00. The proposed
rate change will adjust that $100.00 fee to $125.00.
Public comment - none.
Mr. McConnell stated initially he was not in support of a rate
increase for the golf course; however when the proposal was made it
was far better than what he anticipated would be proposed. He sees
it as a gift to the local golfers where the passes remain the same
and a $1.00 increase in the 18-hole fee is very minimal. He
commended those who came up with the recommended rate proposal.
Mr. Overson stated it appears we are meeting and exceeding the
proforma for the golf course and the acceptance is greater than
expected. Mr. Spencer stated that was correct. .Mr. Overson
#2052
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city Council Reg. Mtg. Minutes
November 26, 1996
Page 10 of 10
complimented those who put together the proforma because that was
what helped to sell the project. ~r. Winters thanked Mr. Overson
for clarifying the point about the proforma and the fact it is
imperative the city stay to the proforma that was presented to
Council approximately three years in order to continue with the
rate increases to insure that the revenues created will quickly
complete what is needed at the Pendergast Regional Park.
Mr. Colvin complimented those who have made the golf course so
successful. He asked if only those grandfathered individuals can
use their private golf carts on the course? Mr. Spencer explained
only three individuals are charged an annual fee to use their
private carts. Other individuals can use their private carts for
a fee of $13.00 per day.
Mr. Neville stated he felt it was important to remember that Dan
Miller, Project Manager, brought in the new course before the
expected completion date and on budget, which is resulting in
dividends to the City.
Mr. Law stated the Council office had received several calls
questioning the recognized holidays where holiday rates are in
effect. In order to clarify that point, he quoted as follows:
"the holiday rate, which is the weekend rate, are city holidays.
It was his hope that a list of "city holidays" would be posted in
the clubhouse. Scott Alexander, Golf Pro, explained the "holiday
list" has been posted in the clubhouse for the past 3-4 years.
M/S/C/U(McConnell/Montgomery) to adopt Resolution No. 2571, setting
forth a fee structure for Gold Mountain Golf Course and repealing
Resolution No. 2532.
President Law thanked the TV camera crew for their services: Robert
Rupe, Patricia Mathas and Debbie Harris
With no further business meeting adjourned at 6:37 P.M.
KATHLEEN L. McCluskey, city Clerk
JOHN E. LAW, Council President
City of Bremerton
KLM/JL/me
cc: Normal Distribution
File/Vault
AGENDA BILL
Amended Professional Services
Contract for Retained Counsel
BREMERTON CITY COUNCIL
FOR AGENDA OF: December 4, 1996/~/~
ORIGINATING DEPT: city Attorney' sfOf~e
ORIGINATOR: Ian R. Siever~-~
Bremerton City At~c~rney
DATE SUBMITTED: December , 1996
2. (Comment on back if necessary) 3.
DIRECTOR
& UTILITIES
Proposed Professional
Services Contract
F~L & BUDGET COM}{ITTEE
Ca
4. SU~RY STATEMENT AND REOUIREMENT FOR COUNCIL ACTION:
The City has contracted with Foster, Pepper & Shefelman fur litigation concernin
the wastewater treatment plant beginning in June 29, 1992. Following settlemen
of the Westhills suit, representation was continued on 3 related cases:
Charleston Beach Association, et al. v. City of Bremerton, et al.,
Kitsap County Superior Court Cause No. 94 2 02586 6;
The City of Bremerton v. Harbor Insurance Company, et al., Kitsap County
Superior Court Cause No. 94 2 02161 5; and
The City of Bremerton v. CH2M Hill Northwest, Inc., et al., Kitsap
County Superior Court Cause No. 94 2 02364 2.
Recently two additional suits have been commenced which also relate to tl
treatment plant. (QQ~
s. ~:
Approve Professional Services Contract.
9. RESPONSIBLE OFFICIAL:
ENFORCEMENT OFFICIAL:
EXPIRATION DATE:
REVIEW DATE:
PULLED [] TABLED []
COUNCIL DIRECTIVE:
10. OF ACT ON
APPROVED [] DISAPPROVED [] AMENDED [] DATE:
(OVER)
2. ~LE/~ANCES COMMENTS:
4. Sr~aRY S~a?~NT ~ REOUIREMENT FOR COUNCIL ACTION CONTINUED:
The American Economy Insurance Company suit is a suit for declaratory judgment tc
decide coverage for Agri-Tech, a defendant in the pending lawsuits, and the City
as co-insured.
The Reliance Insurance Company suit is a suit against Metcalf & Eddy Services'
bond for performance claim.
The proposed contract sets fees for the above cases through 1997. The curren~
contract will terminate upon execution of the proposed agreement.
5. IMPACT OF NON-P~SSAGE:
Default, non-prosecution of claims or alternate legal representation fees.
6. IMPACT ON ST~_FFING, BUDGETS, FACILITIES, EOUIPMENT OR OTHER RESOURCES:
The city Public Works & Utility Department will be responsible for attorney's
and related litigation expenses.
fee
7. O C :
FOSTER.AB - Agenda Disk - 12/3/96
PROFESSIONAL SERVICES AGREEMENT
Retained Counsel
THIS AGREEMENT is between the City of Bremerton, a municipal
corporation (hereinafter referred to as "city") and Foster, Pepper
& Shefelman, Attorneys at Law, (hereinafter referred to as
"Retained Counsel").
W I TN E S SETH:
1. SCOPE:
professional services
The Retained Counsel agrees to furnish
in connection with the following cases:
A. Charleston Beach Association, et al. v. City of
Bremerton, et al., Kitsap County Superior Court
Cause No. 94 2 02586 6;
The city of Bremerton v. Harbor Insurance Company,
et al., Kitsap County Superior Court Cause No. 94 2
02161 5;
The City of Bremerton v. CH2M Hill Northwest,
Inc., et al., Kitsap County Superior Court
Cause No. 94 2 02364 2;
Eo
American Economy Insurance Company v. Agri-Tech, Inc., et
al., Circuit Court for the State of Oregon, Benton County
Superior Court Cause no. 96-1007; and
City of Bremerton v. Reliance Insurance Company, United
States District Court Cause No. C96-5651-RJB.
2. TERM: Contract shall commence on the date fully executed
and will terminate December 31, 1997. All prior contracts shall
terminate upon the commencement of this agreement.
3. COMPENSATION: The city Attorney and Retained Counsel
agree that compensation for services rendered under this Agreement
shall be set at a rate of One Hundred Seventy-five Dollars
($175.00) per hour or a lesser amount for work assigned to
associates or employees of Retained Counsel. Ail fees under this
agreement shall not exceed the amounts listed below, excluding
costs and expenses, and including any sums paid prior to the
commencement date of this agreement:
Charleston Beach Association, et al. v. City of
Bremerton, et al., Kitsap County Superior Court
Cause No. 94 2 02586 6; The city of Bremerton v.
CH2M Hill Northwest, Inc., et al., Kitsap County
Superior Court Cause No. 94 2 02364 2; The city of
PROFESSIONAL SERVICES AGREEMENT
FOSTER.PSA- Disk 1 - 12/3/96
Bremerton v. Harbor Insurance Company, et al.,
Kitsap County Superior Court Cause No. 94 2 02161
5; and American Economy Insurance Company v. Agri-
Tech, Inc., et al., Circuit Court for the State of
Oregon, Benton County Superior Court Cause no. 96-
1007 - Fees not to exceed Five Hundred Fifty
Thousand Dollars ($550,000.00); and
B. City of Bremerton v. Reliance Insurance Company,
United States District Court Cause No. C96-5651-RJB
- Fees not to exceed Twenty Thousand Dollars
($20,000.00).
Case status shall be reviewed and compensation limits amended if
needed prior to January 1, 1998.
Retained Counsel shall submit to the City Attorney's Office a
monthly statement describing the services rendered with time
expended for each activity as authorized under this Agreement. The
City upon receipt of the statement, shall promptly process said
claim for payment.
4. RELATIONSHIP OF PARTIES: The parties understand and agree
that Retained Counsel is a professional law firm skilled in matters
pertaining to litigation and will perform independent functions and
responsibilities in the area of its particular field of expertise.
Retained Counsel and its personnel shall act as independent
contractors and not employees of the City. As such they have no
authority to bind the city nor control employees of the City,
contractors, or other entities. Within the performance of these
duties, Retained Counsel shall work under the direction of the
city Attorney. Retained Counsel will consult with the city
Attorney on discovery and trial approaches, and apprise the City
Attorney of significant developments and forward copies of
important pleadings and correspondence.
5. INDUSTRIAL INSURANCE: Retained Counsel agrees to provide
for State industrial insurance coverage for its personnel as
required by State law.
6. INSURANCE AND HOLD HARMLESS: Prior to and during the
performance of the work covered by this Agreement, Retained Counsel
shall provide the Risk Manager for the City of Bremerton with
evidence that it has obtained and maintains in full force and
effect during the term of this Agreement a policy of professional
liability insurance, providing coverage of at least $1,000,000.00
against professional liability or errors and omissions in
connection with the work to be performed by Retained Counsel under
this Agreement. Risk Manager shall be provided thirty (30) days'
written notice of any cancellation of said professional liability
insurance.
PROFESSIONAL SERVICES AGREEMENT
FOSTER.PSA - Disk 1 - 12/3/96
2
Retained Counsel agrees to defend, indemnify and save harmless
the City, its appointed and elected officers and employees, from
and against any and all liability, loss, costs, damage and expense,
including costs and attorney fees in defense thereof because of
actions, claims or lawsuits for damages resulting from personal or
bodily injury, including death at any time resulting therefrom,
sustained or alleged to have been sustained by any person or
persons and on account of damage to property, arising or alleged to
have arisen directly or indirectly out of or in consequence of or
the performance of this Agreement, whether such injuries to persons
or damage to property is due to the negligence of Retained Counsel,
its subcontractors, agents, successors or assigns. This provision
shall be inapplicable to the extent the City is judicially found
solely negligent for such damage or injury.
7. GENERAL CONDITIONS:
a. Assignability - Retained Counsel shall not assign any
interest in this Agreement, without the prior written consent of
the city thereto; provided, however, that claims for payment under
this Agreement may be assigned.
b. Entire Agreement - This Agreement constitutes the entire
agreement between the parties and both parties acknowledge that
there are no other agreements, written or oral, that have not been
fully set forth in the text of this Agreement.
c. Amendments - The parties hereby further agree that this
Agreement cannot be amended or modified without the written
concurrence of both parties.
d. Notices - Any notices required to be given by the city of
Retained Counsel or by Retained Counsel to the city shall be in
writing and delivered to the following parties at the following
addresses:
Bremerton City Clerk
city of Bremerton
239 Fourth Street
Bremerton, WA. 98337
Foster, Pepper & Shefelman
Attorneys at Law
1111 Third Avenue, suite 3400
Seattle, WA. 98101
e. Waiver - Failure to insist upon strict compliance with any
terms, covenants or conditions of this Agreement shall not be
deemed a waiver of such, nor shall any waiver or relinquishment of
such right or power at any time be taken to be a waiver of any
other breach.
f. Compliance with State, Local and Federal Laws
Retained Counsel agrees to comply with all applicable local, state
and federal laws in performance of all services under this
Agreement.
PROFESSIONAL SERVICES AGREEMENT
FOSTER.PSA- Disk 1 - 12/3/96
3
g. Applicable Law; Venue - This Agreement shall be construed
and interpreted in accordance with the laws of the State of
Washington and, in the event of dispute, the venue of any action
brought hereunder shall be in Kitsap County Superior Court.
8. NONDISCRIMINATION: Retained Counsel shall not
discriminate in employment or services to the public on the basis
of race, color, national origin, sex, religion, age, marital status
or disability, except employment actions based on a bona fide
occupational qualification.
9. TERMINATION: This Agreement may be terminated by either
party for convenience upon thirty (30) days' written notice to the
other party, or for cause if either party fails substantially to
perform through no fault of the other and does not commence
correction within five (5) days of written notice and diligently
completes the correction thereafter. Upon such termination, City
will be entitled to reports showing the status of all matters upon
which Retained Counsel is advising the City as of the effective
date of termination.
IN WITNESS WHEREOF the parties hereto have
Agreement the date and year indicated.
FOSTER, PEPPER &
executed this
SHEFELMAN
Date: BY:
BY:
Date:
CITY OF BREMERTON
LYNN HORTON, Mayor
APPROVED AS TO FORM:
IAN R. SIEVERS, city Attorney
RECEIVED FOR FILING:
~ATHLEEN L. McCLUS~EY, CITY CLERK
SECOND AMENDMENT TO PROFESSIONAL SERVICES AGREEMENT - 4
FOSTER2.AMD - Disk 13 - 9/25/96 4
AGENDA BILL
BREMERTON CITY COUNCIL
1. Subject: 10% Petition/Letter of Intent to annex
the area known as the Oyster Bay Avenue Area.
2. Clearances: (~o~n~ed)
city ,,
Director o£DCD: _
Council Committees:
FOR AGENDA OF: 12/11/96
ORIGINATING DEPT: Executive
ORIGINATOR: T. O'Neill~
DATE SUBMITTED: 12/5/96
3. Exhibit,s:
· Letter of intent to Annex
· Certification of Letter
(Original petition on file in Clerk's office)
· Staff Report
~ ,z]. ~ Council President: t_ ~ j~.~/ --
Mayor:
4. SUMMARY~'STATEMENT AND REQUIREMENT FOR COUN~CTION:
The City of Bremerton holds a Letter of Intent to annex properties located in an area
which is north of the sewer treatment plant, south of the Loxie Eagans interchange and east of
Cottman Ave. The letter contains signatures representing in excess of 10-percent of the value of
the land proposed for annexation and is in accordance with R.C.W. 35.13.125.
The City Council is required to make certain determinations at this point in the annexation
process. Three questions need to be answered:
Will the City Council accept, reject, or geographically modify the proposed annexation area?;
Will the Council require the simultaneous adoption of a comprehensive plan or will they elect
to use the administrative assignment of provisional zoning as allowed in the Bremerton
Municipal Code (BMC 21.02.260)?; and
W'dl the Council requke property owners of the annexing area to assume a proportional share
of all or any portion of existing city indebtedness (i.e. outstanding bonds)?
8. RECOMMENDATION:
It is recommended that the City Council take the following actions:
1. Accept the area as oroposed:
2. Require the, simultaneous adoption of _
comprehensive plan and land use designations; and
3. Require the owners of real property in the annexation area to assume a proportional share of
existing city indebtedness.
9. RESPONSIBLE OFFICIAL:
ENFORCEMENT OFFICIAL:
EXPIRATION DATE:
REVIEW DATE:
10. NOTICE OF ACTION:
PULLED: [] TABLED: [] APPROVED:n DISAPPROVED: []
Ig
2. CLEARANCE COMMENTS:
5. IMPACT ON NON-PASSAGE:
The City Council is obligated to hold a meeting with the initiating parties to make determinafions
about the acceptance of the annexation. The decision of the Council to accept or reject the proposed
annexation is entirely within the Council's discretion. By accepting the proposed annexafion, the council is
not committing itself to ultimately annexing the temtory proposed when a sufficient petifion is presented to
it. The decisiun to accept merely allows the annexation to go forward procedurally, ffthe Council rejects the
proposed annexation, the inifiating parties have no r~ght of appeal (R.C tK. 35.13.177 and 178).
6. IMPACT ON STAFFING, BUDGETS, FACILITIES, EQUIPMENT OR OTHER
RESOURCES:
See Municipal Services Stqff Report.
7. RESEARCH SOURCES:
"Annexation Handbook." Municipal Research & Services Center of Washington. June 1995 (51).
"Implementation, Consistency and Concurrence: Annexation Policies." Bremert0n Comvrehensive
Plan (April 5, 1995.) Feb. 1996. Chapter K, Sec. 4 Urban Growth Policies, Sub-secfion D (10).
"Zoning: Zoning Upon Annexation." Bremerton Municival Code (1996). Mar. 1996 (661 ).
Excerpt from Annexation Policies:
According to city policies established for annexafion, the City of Bremerton considers annexation as a means
of meeting community needs. The following objectives are the framework for measuring specific annexation
requests.
Objective A:
The city will utilize uniform criteria in evaluating annexations.
· Short-and long-term community impacts on levels of service and projected revenues
end expenditures for services will be evaluated.
· Only annexations which do not diminish the current levels of service over the long-
term will be accepted.
Objective B: The city will consider annexation areas best meeting the growth goals and polices of
the city and region.
Objective C: The city will consider annexafion areas which preserve established neighborhoods
and community identifies.
lq
Certification of Letter of Intent
I, Kathleen McCluskey, City Clerk for the City of Bremerton, do hereby certify that I have
received today a Letter of Intent supported by owners of not less than ten percent of the value of
the property for which annexation is petitioned, according to the assessed valuation for general
taxation purposes as required in R.W. 35.13.125.
The assessed valuation of these parcels, according to the Kitsap County Tax Assessors official
record, is $4,950,480.00.
The assessed valuation of property represented by signatures is$3,425,920.00 (69%).
These signatures therefore constitute at least the required 10%, which figure would be $495,048.
SIGNE~'~ND S ~EAL~ayj ~._~_3 . .~._° f Decec~.~mber' 1~996'
Kathleen McCluskey, City Clerk
City of Bremerton
,.9_0
RECEIVED
OFFICE OF CiTY CLERK
D^TE~ I Y ~ '~
December 2, 1996
The Honorable Mayor and Bremerton City Council
The City of Bremerton
239 Fourth Street
Bremerton WA 98337
Dear Legislators:
Let this letter serve as an official Letter of Intent to Commence Annexation
Proceedings from the undersigned for the area legally described on the attached
Exhibit "A", into the iurisdictional boundaries of the City of Bremerton.
The undersigned does represent ownership of not less than ten percent (10%) in
value, according to Kitsap County's estimate of the assessed valuation for
general taxation purposes.
It is requested that the city Council of the City of Bremerton set a date not later
than sixty (60) days after the filing of this request for a meeting with the
undersigned to determine:
1. Whether the City Council will accept a 75% petition for annexation; and
2. Whether the City Council will require adoption of a comprehensive plan
and zoning for the proposed area under RCW 35.13.177 and 35.13.178 or
application of land use designation for newly annexed property set forth in
Bremerton Municipal Code 21.02.260; and
3. Whether the City Council will require the assumption of a proportional
share of existing City indebtedness by the area to be annexed.
This Notice and any other Notices containing identical text material and
additional signatures are intended by the undersigned to be presented and
The Honorable Mayor and Bremerton City Council
Page 2
December 2, 1996
considered as one Notice of Intent.
Signed,
Mayor Lynn S. Horton for the City of Bremerton
Date
Representing ownership of properties within annexation area to indude:
4502 014 007 0009; 4502 014 010 0004; 4502 014 010 0103; 4502 014 010 0202; 4502
014 011 0003; 4502 014 012 0002; 4502-014-012-0101; 4502-020-003-0000; 4502-020-
0007-0006; 4502-020-009-0004; 4502-020-028-0001; 4502-020-030-0106; 4502-020-
032-0005; 4502-020-035-0002; 4502-021-001-0000; 4502-021-003-0008; 4502-021-005-
0006; 4502-021-006-0005; 4502-021-028-0009; 4502-021-031-0004; 4502-021-033-
0002; 4502-024-001-0004; 4502-024-003-0002; 4502-024-005-0000; 4502-024-007-
0008; 4502-024-025-0204; 4502-027-027-0004; 4502-025-005-0007; 4502-025-024-
0004; 4502-025-026-0002; 4502-025-028-0000; 4502-025-032-0004; 4502-028-003-
0003; 4502-028-004-0002; 4502-028-005-0001; 4502-028-009-0007; 4502-028-010-
0004; 4502-028-025-0007; 4502-028-029-0003; 4502-028-031-0009; 4600-018-001-
0007; 4600-018-034-0008; 4600-018-033-0009; 4600-018-038-0004; ??7401-3-001-
2004; ???401-3-002-2003; 222401-3-008-2007; ???401-3-006-2009; 4546-001-005-
0006; 4546-001-006-0005; 4546-001-008-0003; 4546-002-001-0008; 4546-002-002-
0007; 4546-002-005-0004; 4546-002-009-0000; 4546-002-012-0005; 4546-002-013-
0004; 4546-002-014-0003; 4546-002-015-0002; 4546-002-017-0000; 4546-002-018-
0009; 4546-002-019-0008; 4546-003-001-0006; 4546-003-002-0005; 4546-003-004-
0003; 4546-003-006-0001; 4546-003-007-0000; 4546-003-009-0008; 4546-003-013-
0002; 4546-003-016-0009; 4546-003-018-0007; 4546-003-019-0006; 4546-005-005-
0007; 4546-005-007-0005; 4502-025-004-0008; 4502-025-008-0004; and 4502-025-025-
0003.
Oyster Bay Annexation Area
67.38 Acres
THE OLE HANSON'S & SR3 & SOUTH OF TREATMENT PLANT AND GOVT LOT 1
SEC 28 ANNEXATION AREA 11/18/96. CHECKED BY NED LEVER.
That portion of the SEl/4 of the NEl/4 of Section 21, T24N, R1 E, WM, lying easterly of
the westerly margin of the Right-of-Way acquired for SR-3, and south of the south
margin of Werner Rd (Loxie Egans Blvd.)
ALSO:
That portion of Section 22, T24N, R1 E, WM, lying westerly of the easterly right-of-way
line of SR-3, and southerly of the south right-of-way line of Wemer Rd (K Street),
Except the following described property; Beginning at the SW corner of Section 22,
T24N, R1E, W.M.; thence S87°59'08"E, 30 feet to the east margin of Oyster Bay Road
and the TPOB; thence N1 °59'33"E, 592.34 feet; thence S22°34'27"W 85.33 feet;
thence N1 °59'33"E 449.60 feet; thence S88°05'58"E 200.99 feet; thence N22°34'27"E
107.31 feet; thence S88°05'58"E 170.88 feet; thence N1 °51'36"E 90.0 feet; thence
S88°05'58"E, 75.97 feet; thence S8°50'05"W 101.98 feet; thence S2°28'31"E, 300.0
feet; thence S3°08'39"W, 132.77 feet; thence along the arc of a curve to the right
whose point of radius bears S87°31'29"W, 1380 feet an arc distance of 276.00 feet;
thence S4°52'20"E, 197.17 feet; thence S19°41'29"W, 154.21 feet; thence
N87°59'08"W, 46.14 feet; thence N19°53'22"E, 4.62 feet; thence NT0°06'38"W, 134.06
feet; thence S19°53'22"W, 47.86 feet; thence N87°59'08"W, 247.69 feet to The TPOB.
ALSO:
That portion of the NWl/4 of Section 27, T24N, R1 E, W.M. lying westerly of the west
margin of the State Right-of-Way for SR-3 and SR-304.
ALSO:
That portion of the Plat of Ole Hanson's Navy Yard Addition lying between the east
margin of Cottman Ave and the centerline of Oyster Bay Ave.
ALSO: The north 375.6 feet of the NEll4 of the NEll4 of Section 28, T24N, R1 E, W.M.
EXCEPT the following described parcel; That portion of Govt. Lot 1 of said Sec. 28.
Beginning at the section corner common to Sections 21,22, 27, and 28 of said
Township and Range; thence S 15°51'34"W 30 feet; thence N88°15'53"W 957.38 feet
to the TPOB; thence continuing N88°15'53"W 373.78 feet; thence Sl °05'03"W 315
feet; thence running northeasterly 485.90 feet to the TPOB. ALSO EXCEPT the west
373.78 feet of the north 30 feet of said Govt Lot 1.
CONTAINING 67.38 ACRES
ROOsev~/¢
~W Zi
;ii
I',iWD~ fl~
I iLeUireli Ih~l ~
SO~E
HORIZ.~
PLOT
DRAW1NG NO.
CITY OF BREMERTON J
DEPARTMENT OF PUBUC WORKS
& UTIUT1E8
ENGINEERIN~ DIVISION
DRAWN BY: S.bI.J. J DESIGN BY:
DATE 9-10-96 I DATE
OYSTER BAY
ANNEXATION
AREA
JCHECKED BY:DATE__
O~zmte~ ~E~a~ ~enue J~z~z~exation
Prepared by Terrie O'Neill, Municipal Services Coordinator
November 26, 1996
Cities use annexation to expand their boundaries and to provide land for new
development. As Bremerton faces the turning of the century, many new venues for re-
vitalization are on the horizon, but resources and services are finite. The City Council
is charged by state statute to determine what annexations are best for the city. The
following report is provided to give the City Council necessary data for the evaluation
of a request to annex to the City of Bremerton.
Section 1: A Review of City Policy on Annexation:
The city seeks to annex areas that will enhance the economy and livability of the City of
Bremerton. According to polices adopted for annexation by City Council, the City of
Bremerton considers annexation a means of meeting community needs. This includes
both the service and capital needs of the applicant and the needs of existing city
citizens.
To evaluate the suitability of a site proposed for annexation, short- and long-term
community impacts on all residents should be studied. The area should have the
ability to provide the resources necessary to accommodate their own service and capital
needs. Only annexations which do not diminish the current level of services, over
time, should be accepted. In some cases, annexation brings about a reduction in costs
to the city. This is accomplished through the collection of taxes from an area where the
city is already providing many services, either through mutual aid or otherwise.
Section 2: Services to the Proposed Area
The Oyster Bay Avenue is a slender corridor between the state highway and an existing
city neighborhood, which was annexed last year. The following comments were
received from departments regarding service provision to the annexation area:
November 18, 1996
o25
Parks and Recreation:
The effect of the Oyster Bay Annexation is very minimal to the deparba~ent inasmuch as
the region is already served by several local parks (3), including Pendergast off of
Union Avenue.
U~illty Services: Water
Water service to the area is provided by the City of Bremerton. Water storage
for the area comes from Reservoir 4, with an eleven-million gallon capacity, located at
Union and 3rd Avenues. Water transmission to and through the area is conveyed by a
24" main in Oyster Bay Avenue and crossing Hwy. 3 at H Street- Distribution mains in
F, G, and FI Streets consist of 1 ¥2" to 2" galvanized lines. Distribution mains in C, D, E
and Bayview consist of 4" ductile iron lines constructed in 1981. Water pressure on the
24" main in Oyster Bay Avenue is between 50 and 60 psi. Fire hydrants are located at
three intersections along the 24" Oyster Bay Avenue main.
It is anticipated that water storage and pressure for the area is adequate for most
land uses. Distribution mains of substandard size, i.e. 1 1/2" and 2", are included in the
city substandard main upgrade list. These mains are not scheduled for replacement
within the next five years due to their short lengths and limited number of services.
Substandard main replacement is scheduled based on priority in the list and street
overlay coordination. Additional fire hydrants will likely be necessary if any new
development occurs within the area.
Sewer:
Wastewater service to this area is provided by the City of Bremerton. Being
located directly north of the city treatment plant, two interceptor sewers cross the area.
One serves Oyster Bay and Sinclair Park sewer basins and is located along the west
margin of Hwy. 3. This main is at capacity and an alternative to provide additional
flow is under investigation. The other interceptor sewer serves the Kitsap Lake basin
and is located in Jones Street, C Street and Bayview Avenue. Local streets within this
area are served by standard 8" sewers.
It is anticipated that an upgrade of the Oyster Bay interceptor line will be needed
and is included in the city Wastewater Comprehensive Plan. If the system
November 18, 1996
2
modifications currently under consideration are as effective as anticipated, replacement
will not be necessary in the immediate future. Provisions for the upgrade will need to
be considered in the planning efforts for this area. No upgrades of the local sewers are
anticipated.
No combined sewer separation is scheduled for this area. Some minor
stormwater inflow to the sewer system appears to occur in Oyster Bay Avenue and C
Street. A minor stormwater separation project my be undertaken at some point in the
future to eliminate the block of combined sewers within the area.
Storm drainage:
A major drainage draw parallels Hwy. 3 on the east margin of the area. Runoff
from the Sinclair Park basin (auto center) flows through this drain. There are not storm
drains within the local streets of the area and stormwater is carried as surface flow to
the drainage draw. The city owns a detention basin at the north end of this area. This
basin serves to improve water quality and limit peak discharge from the area west of
Oyster Bay Avenue an south of Werner Road. There are no storm drainage
improvements anticipated for the area.
Public Works:
Roads:
The roads in the area to be annexed are asphalt construction and are
substandard when compared to current city street standards. The roads have no curbs
and no sidewalk which make it difficult for pedestrian traffic. Oyster Bay Avenue
needs to be widened from Jones Street south to the end, for the traffic entering the
treatment plant. The overall roadway condition of the roads will place them in the
lower Overall Condition Index (OCI) in the city Pavement Management System.
The OCI of these roads is relatively low when compared with the existing
roadway system of the city. This will cause them to be placed higher in priority than
some of our existing city streets. Additionally, a guard rail may be needed alone the
roadway at Roosevelt and Cottman Avenue. The project to widen Oyster Bay Avenue
to accommodate plant traffic will be accomplished through the Wastewater division.
The project is listed in the city Capital Improvements Plan (CIP).
November 18. 1996
Depath~ent of Commolllty Developmen~
This department has developed a comprehensive document for the area, which was
adopted by the City Council in 1990. The West Hills Area Plan identifies Land Use
Planing, circulation, public services and utilities, and future city zoning. The plan
includes two other areas which were earlier annexed into the city. In the body of the
plan, the writer explains that, due to the advantageous central location of the site and
proximity to State Route 3, growth pressures in the area are expected to continue. The
area topography and accessability combine to provide excellent "visibility, which may
prove to be an important asset for the futurev'.
Emergency Services:
Police:
Due to the small population of the area, no negligible impact to police services is
expected.
Fire:
Services to the area will be provided within five minutes from station two, on
Kitsap Way, or from the downtown station one.
~ "West Hills Area Plan." Ci_ty of Bremerton. Adopted February 7, 1990 by the
Bremerton City Council, resolution//2287 and was amended to the Bremerton Comprehensive
Plan. Donald L. Pratt, Director, Department of Community Development.
November 18. 1996
~. SUBJECT: Approval of
Admiral Theatre
108 loan.
AGENDA BILL
BREMERTON CITY COUNCIL
FOR AGENDA OF:
ORIGINATING DEPT:
ORIGINATOR:
DATE SUBMITTED:
December 11, 1996//-~/f~
Legal ~ ///
I. Sievers, cityk~tt~
Dec. 2, 1996 ~--~--/~'
(Comment on back if necessary)
Brought before Fiscal & Budget Committee 12/3/96.
COUNCIL COMMITTEE
3. EXHIBITS:
-Guaranty, Deed of Trust,
Consent to Assignment
of Operating Agreement
(LOAN DOCUMENTS ON FILE IN J
~........CITY CO~NCIL OFFI.CE**~,..,,~/
ENDORSEMENT ~ INFO/~MATION [ ]
APPROVED BY COUNCIL PRESIDENT FOR SUBMITTAL:
COUNCIL PRESIDENT
SUMMARY STATEMENT AND REOUIREMENT FOR COUNCIL ACTION:
The Admiral Theatre Foundation has received loan documents to finalize its
receipt of a $1.5 million HUD Section 108 loan for capital improvements to the
city's Admiral Theatre property. The City approved the application, including
pledge of the property as security for the loan, and has recently provided
bridge loan until the HUD proceeds were available.
As part of the loan documents the City must provide approval three documents; 1)
a Secured Non-recourse Guaranty which guarantees the Theatre Foundation'z
obligations set forth in the Loan documents with recovery limited to the theatre
property only, 2) Deed of Trust with Assignment of Rents and Security Agreement
to secure the City's Guaranty with a lien on the property, and 3) Consent to the
Collateral Assignment of Operating Agreement which approves the Foundation'~
assignment of its operating agrement with the City as additional security.
The County's rights under this loan will be assigned to HUD as guarantor of the
bond issue which will finance the 108 loan. HUD also holds the County's futur~
block grant alocations as security for nonpayment.
8. ~u¢~: Approve execution of Guaranty, Deed of Trust and Consent t(
Collateral Assignment of Operating Agreement
9. NOTICE OF ACTION
PULLED [] TABLED []
COUNCIL DIRECTIVE:
APPROVED [] DISAPPROVED []
AMENDED [] DATE:
11. AGENDA BILL NO.
(OVER)
2. CLEARANCE COMMENTS:
5. IMPACT OF NON-P~SSAGE=
Loan will not be processed; City will be responsible for repayment of bridge loan
which would otherwise be immediately be repaid from loan proceeds.
6. IMPHCT ON STAFFING. BUDGETS, FHCILITIES, EOUIPMENT OR OTHER RESOURCES=
No impact on staff, facilities or budget unless over five year repayment the
Foundation defaults and HUD exercises right to foreclose against the property.
?. RESEARCH SOURCES:
8 o
RESPONSIBLE OFFICIAL:
ENFORCEMENT OFFICIAL:
EXPIRATION DATE:
REVIEW DATE:
SECURED, NON-RECOURSE GUARANTY
For and in consideration of the sum of Ten Dollars ($10.00) and other good and
valuable consideration in hand paid to it, the CiTY OF BREMERTON, WASHINGTON
("Guarantor"), for the purpose of enabling THE ADMIRAL THEATRE FOUNDATION, a
Washington non-profit corporation ("Debtor"), to borrow certain funds from KITSAP
COUNTY, WASHINGTON (hereinafter called "Holder"), and recognizing that but for this
Guaranty such loan would not be made by the Holder to the Debtor and the funds
advanced thereunder, hereby guarantees to Holder the prompt payment (and not merely
the collectability) when due at maturity of the following (hereinafter called the
"Obligations"): (i) the full amount of principal and interest due and owing, from time to
time, under the terms of that certain promissory note (the "Note") dated of even date
herewith, made by Debtor, payable to the order of Holder in the principal sum of One
Million Five Hundred Thousand Dollars ($1,500,000.00), and all renewals,
rearrangements and extensions thereof and of any part thereof and any sums due to or to
become due pursuant to any instrument which secures the payment of said Note; (ii) all
sums payable from time to time in connection with the performance of any of the
covenants, agreements or other obligations undertaken by the Debtor in all Loan
Documents; and (iii)all costs, attorney's fees and expenses incurred or expended by
Holder in collecting any of the Obligations or in enforcing any right granted hereunder.
This Guaranty is secured by a Deed of Trust With Assignment of Rents and Security
Agreement and an Assignment of Leases and Revenues covering property of the
Guarantor, all of even date therewith (collectively the "Deed of Trust").
The obligations and undertakings of Guarantor contained in this Guaranty shall not
create or constitute personal obligations or undertakings of the Guarantor, and shall be
satisfied solely from and Holder's recovery hereunder from or against Guarantor shall be
limited to the property covered by the Deed of Trust.
Guarantor specifically agrees that it shall not be necessary or required in order to
enforce Guarantor's obligations under this Guaranty that Holder have made demand for
payment upon Debtor or any other person liable thereon or have made protest thereof or
have given notice to Debtor or any other party liable thereon of maturity or nonpayment of
said Obligations, or have realized upon or sought the benefits of any security for the
Obligations.
Guarantor specifically waives any notice of acceptance of this Guaranty by Holder
and of the creation, advancement, existence, extension, renewal or rearrangement of the
Obligations, or increase or reduction of the rate of interest thereon, or any indulgence with
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respect to the Obligations, or any part thereof, and of nonpayment thereof or default
thereon, and waives grace, demand, protest, presentment, and notice of demand, protest
and presentment with respect to the Obligations, and waives notice of the amount of the
Obligations outstanding at any time, and agrees that the maturity of the Obligations, or
any part thereof, may be accelerated, extended, modified, amended or renewed or any
other indulgence may be granted with respect thereto by Holder at its will or as may be
agreed by Debtor without notice to or further consent by Guarantor, at any time or times.
Guarantor agrees that no renewal, extension or rearrangement of or any other
indulgence with respect to the Obligations, or any part thereof, or increase or reduction of
the rate of interest thereon, no release of or substitution for any security or other guaranty
now or hereafter held by Holder for payment of the Obligations, or of any part thereof, no
release of Debtor, or of any other person primarily or secondarily liable on the
Obligations, or any part thereof, and no delay or omission or lack of diligence or care in
exercising any right or power with respect to the Obligations or any security therefor or
guaranty thereof or under this Guaranty shall in any manner impair or affect the rights of
Holder or the obligations and liability of Guarantor hereunder. Guarantor specifically
agrees that it shall not be necessary or required, and that Guarantor shall not be entitled
to require, that Holder file suit or proceed to obtain or assert a claim for personal
judgment against Debtor for the Obligations, or make any effort at collection of the
judgment against Debtor for the Obligations from Debtor, or foreclose against or seek to
realize upon any security now or hereafter existing for the Obligations, or file suit or
proceed to obtain or assert a claim for personal judgment against any other party (maker,
guarantor, endorser or surety) liable for the Obligations, or make any effort at collection of
the Obligations from any such other party, or exercise or assert any other right or remedy
to which Holder is or may be entitled in connectior~ with the Obligations or an,/security or
other guaranty therefor, or assert or file any claim against the assets or estate of Debtor
of any other guarantor or other person liable for the Obligations, or any part thereof,
before or as a condition of enforcing the liability of Guarantor under this Guaranty.
Guarantor expressly w~ive~ 2ny rL.3bt +o ~hP- hP__nRfit of or to reauire or c~rJJ'rr~! :;?lication
of any securitv or the Proceeds of any security now existing or hereafter obtained by
Holder as security for the Obligations. or any part thereof, and agree that Holder shall
have no duty insofar as Guarantor is concerned to apply upon any of the Obligations any
monies, payments or other property at any time received by or paid to or in the
possession of Holder, except as Holder shall determine in its sole discretion. Guarantor
specifically agrees that Guarantor shall not have any recourse or action against Holder by
reason of any action Holder may take or omit to take in connection with the Obligations,
the collection of any sums or amounts herein mentioned, or in connection with any
security or any other guaranty at any time existing therefor.
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Guarantor agrees to the terms, provisions and conditions of the Note and of any
renewal or~ extension thereof~-
in connection w!th thc Ob]!~ations or any part thereof, and agrees that Guarantor's liability
hereunder shall in no manner be affected, impaired or released by reason thereofef 3,%'
...... , r- ...................... Cf ~,q ................... ~ .......... , ~, ~ ........ , ......
.......................................... , ......... or any action taken or omitted
to be taken by Holder pursuant thereto or in connection therewith.
Guarantor absolutely and unconditionally covenants and agrees that in the event
that Debtor does not or is unable so to pay or perform the Obligations for any reason,
including, without limitation, liquidation, dissolution, receivership, insolvency, bankruptcy,
assignment for the benefit of creditors, reorganization, arrangement, composition, or
readjustment of or other similar proceedings affecting the status, composition, identity,
existence, assets or obligations of Debtor, or the disaffirmance or termination of any of
the Obligations in or as a result of any such proceeding, Holder may enforce any of its
rights hereunder or under the Deed of Trust and that no such occurrence shall in any way
affect Guarantor's obligations hereunder.
If the status of Debtor changes, including, but not limited to, a merger, dissolution,
consolidation, or reorganization, this Guaranty shall continue and also cover the
indebtedness and Obligations of Debtor under the new status according to the terms
hereof.
In the event any payment by Debtor to Holder is held to constitute a preference
under the bankruptcy laws, or if for any other reason Holder is required to refund such
payment or pay the amount thereof to any other party, such payment by Debtor to Holder
shall not constitute a release of Guarantor from any liability hereunder, this Guaranty shall
continue to be effective or shall be reinstated, as the case may be, to the extent of any
such payment or payments.
All payments made upon the Obligations at any time shall be deemed to have
been paid by Debtor, unless express notice in writing is given to the Holder at the time of
payment by Guarantor that Holder has been paid by them. The payment deemed to have
been made by Guarantor of any amount pursuant to this Guaranty shall not in any way
entitle Guarantor to any right, title or interest (whether by way of subrogation or otherwise)
in and to any of the Obligations or any proceeds thereof, or any secudty therefor.
If any or all of the Obligations are now or hereafter secured in whole or in part,
Guarantor agrees that Holder may, from time to time, at its discretion, and with or without
valuable consideration, allow substitution or withdrawal of collateral or release all or any
part of such security, without notice or consent by Guarantor, and without in anywise
impairing, diminishing, or releasing the liability of Guarantor hereunder.
Guarantor agrees that all costs and expenses (including court costs and attorney's
fees) incurred by the Holder in the enforcement of this Guaranty shall be Obligations
covered hereby.
No provision contained herein or in any Obligations executed by the Debtor or
Guarantor shall require the payment or permit the collection of interest in excess of the
maximum permitted by applicable usury laws. If any excess of interest in such respect is
provided for herein or in any Obligations, the provisions of this paragraph shall govern
and neither the Debtor nor Guarantor shall be obligated to pay the sum of such interest to
the extent that it is in excess of the amount permitted by law; the intention of the parties
being to conform strictly to usury laws now or hereafter in effect and applicable to the
Obligations, and shall be held subject to reduction to the amount allowed under
applicable usury laws as now or hereafter construed by the courts having jurisdiction
thereof.
Guarantor agrees, to the full extent it may legally do so, that suit may be brought
against Guarantor to enforce this Guaranty or recover upon any of the security therefor
with or without making Debtor a party to such suit (as Holder may elect).
Guarantor waives all defenses given to sureties or guarantors at law or in equity
other than actual payment of the Obligations. The failure by Holder to file or enforce a
claim against the estate (either in administration, bankruptcy, or other proceeding) of
Debtor or of any other or others shall not affect the liability of Guarantor hereunder.
This Guaranty is intended for and shall inure to the benefit of Holder and each and
every other person who shall from time to time be or become the owner or holder of any
of the Obligations hereby guaranteed, and each and every reference herein to "Holder"
shall also include and refer to each and every successor or assignee of Holder at any
time holding or owning any part of or interest in any part of the Obligations hereby
guaranteed. This contract of guaranty shall be transferable, it bein9 understood and
stipulated that upon the assignment or transfer by Holder of any of the Obligations (or any
part thereof or interest therein thus transferred or assigned by Holder) such transferee
shall also, unless provided otherwise by Holder in its assignment, have and may exercise
all the rights granted to Holder under this Guaranty to the extent of the part of or interest
in the Obligations thus assigned or transferred to said person. Guarantor expressly
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waives notice of transfer or assignment of the Obligations, or any part thereof, or of the
rights of Holder hereunder.
If any of the following events occur or be continuing:
(a) an event of default occurs under the terms of the Obligations and continues
beyond the time provided therein for the curing of such default, or
(b) if Guarantor defaults in the performance or observance of any agreement,
covenant, term or condition contained herein, or
(c) if Guarantor makes an assignment for the benefit of creditors, or
(d) if Guarantor petitions or applies to any tribunal for the appointment of a
trustee or receiver of the business, estate or assets or of any substantial part of the
business, estate or assets of Guarantor or commence any proceedings relating to
Guarantor under any bankruptcy, reorganization, arrangement, insolvency, readjustment
of debt, dissolution or liquidation law of any jurisdiction, whether now or hereafter in effect,
or
(e) if any such petition or application is filed or any such proceedings are
commenced against Guarantor and Guarantor by any act indicates its approval thereof,
consent thereto, or acquiescence therein, or an order is entered appointing any such
trustee or receiver, or adjudicating Guarantor bankrupt or insolvent or approving the
petition in any such proceedings, and such order remains in effect for more than sixty (60)
days,
then an event of default under this Guaranty shall have occurred and the Holder may, at
its option, declare the Obligations to be, and the Obligations shall thereupon be and
become forthwith due and payable together with interest accrued thereon under the terms
of and with the effect provided in the Obligations, and this Guaranty.
Any notice or demand to Guarantor hereunder or in connection herewith may be
given and shall conclusively be deemed and considered to have been given and received
upon the deposit thereof, in writing, in the U.S. Mail, duly stamped and addressed to
Guarantor at the address of Guarantor shown below; but actual notice, however, given or
received, shall always be effective. The last preceding sentence shall not be construed in
anywise to affect or impair any .waiver of notice or demand herein provided or to require
giving of notice or demand to or upon Guarantor in any situation or for any reason.
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Guarantor hereby subordinates any and all indebtedness of Debtor now or
hereafter owing to Guarantor to all indebtedness of Debtor to Holder, and agrees with the
Holder that Guarantor shall not demand or accept any payment of principal or interest
from the Debtor if at such time Debtor is in default under the Obligations and shall not
claim any offset or other reduction of Guarantor's liability hereunder because of any such
indebtedness and shall not take any action to obtain any of the security described in and
encumbered by any security in favor of Holder.
This Guaranty shatl be deemed to have been made under and shall be governed
by the laws of the State of Washington in all respects and shall not be waived, altered,
modified or amended as to any of its terms or provisions, except in writing duly signed by
Holder and Guarantor.
This Guaranty shall bind the assigns of Guarantor and shall inure to the benefit of
all transferees, credit participants, assignees, and/or endorsees of Holder. The use of
any gender herein shall include the other genders. A determination that any provision of
this Guaranty is unenforceable or invalid shall not affect the enforceability or validity of
any other provision.
EXECUTED this __ day of
,1996
GUARANTOR:
CITY OF BREMERTON, WASHINGTON
By:
Its
Address:
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The Debtor acknowledges and agrees to the terms of the foregoing Guaranty this
__ ,dayof~ ,1996.
THE ADMIRAL THEATRE FOUNDATION
By:
k\15727~ADMIRAL.GTY
-7-
Filed for Records at Request of;
After Recording Mail to:
Roy F. Kussmann, Esq.
McGavick Graves, P.S
P.O. Box 1317
Tacoma, WA 98401-1317
DEED OF TRUST WITH ASSIGNMENT OF RENTS
AND SECURITY AGREEMENT
THIS DEED OF TRUST WITH ASSIGNMENT OF RENTS AND SECURITY
AGREEMENT (the "Deed of Trust") is made and given , 1996, by and
among:
THE CITY OF BREMERTON, WASHINGTON ("Grantor"), whose address
is
address is
TITLE INSURANCE COMPANY ("Trustee"), whose
.; and
3. KITSAP COUNTY, WASHINGTON ("Beneficiary"), whose address is
Department of Community Development, Kitsap County, 614 Division Street, MS 36, Port
Orchard, WA 98366.
RECITALS
This Deed of Trust is given to secure Grantor's obligations under a Secured, Non-
Recourse Guaranty (the "Guaranty") given by Grantor to Beneficiary in connection with a
loan (the "Loan") by Beneficiary to The Admiral Theatre Foundation ("Borrower") in the
principal amount of One Million Five Hundred Thousand Dollars ($1,500,000.00)
evidenced by a Promissory Note of even date herewith (the "Promissory Note").
AGREEMENTS
In consideration of the Loan, and pursuant to the Guaranty, Grantor hereby
represents, warrants, covenants, and agrees as follows:
Page -1
ARTICLE I - GRANT OF DEED OF TRUST AND SECURITY INTEREST
TO SECURE OBLIGATIONS
1.1 Grant of Deed of Trust and Security_ Interest. Grantor hereby irrevocably
grants, transfers, conveys, and assigns to Trustee, in trust, with power of sale, all of
Grantor's present and future estate, rights, title, claim, interest, and demand either in law
or equity1 of, in, and to the following property (the "Property") and, to the extent that any
such Property may constitute personal property, Grantor, as Debtor, grants and conveys
to Beneficiary, as Secured Party, a security interest under Article 9 of the Uniform
Commercial Code in the following (subject, however, to Grantor's present, absolute, and
unconditional assignment of rents contained in Article 7 hereof}:
1.1.1 Realty_. All of the estate, right, title, and interest now owned or
subsequently acquired by Grantor in the real property situated in the City of Bremerton,
Kitsap County, Washington, legally described in Exhibit "A" attached hereto; all rights,
easements, tenements, rights-of-way, privileges, appendages, and appurtenances now or
hereafter appertaining to such real property, including but not limited to all rights relating
to water, storm and sanitary sewer, gas, electric, railway, and telephone services; all
development rights, air rights, water, water rights, water stock, gas, oil, minerals, coal and
other substances of any kind or character underlying or relating to such land; ali estate,
claim, demand, right, title, or interest of the Grantor in and to any street, road, highway or
alley, whether vacated or otherwise, adjoining such land; all rents, royalties, profits, and
franchises relating to such land, and all strips and alluvial accretions belonging, adjacent,
or pertaining to such land (all of the foregoing is herein included within the term "Realty");
1.1.2 Improvements. All buildings, structures, improvements, easements.
appurtenances, and tenements now or hereafter located on or otherwise relating to the
Realty;
1.1.3 Construction Agreements and Materials. All plans, specifications,
contracts, agreements and purchase and shipping orders and reservations pertaining or
incidental to the design or construction of any improvements on the Realty; Grantor's
rights under any payment, performance, or other bonds in connection with construction or
furnishing of improvements on the Realty; all construction materials, supplies, and
equipment delivered to the Realty or used or intended to be used in connection with
construction of improvements on the Realty, wherever actually located;
Page -2
1.1.4 W r._~. All water appropriation rights, water discharge rights,
reclaimed water agreements, water vending agreements, warranties, and guarantees,
and other water stock and other rights relating to the Realty and the operation, use, and
enjoyment thereof;
1.1.5 Furnishings and Fixtures. All furnishings, fixtures, fittings,
replacements, equip~nent, and articles of property now or hereafter attached to, or used
or adapted for use in the operation of, the Realty (whether such items are leased, owned
absolutely, or subject to any title retention or security instrument, or otherwise used or
possessed), including, without limitation, all heating, cooling, air conditioning, ventilating,
refrigerating, plumbing, generating, power, lighting, laundry, maintenance, incinerating,
lifting, cleaning, fire prevention and extinguishing, security and access control, cooking,
gas, electric, and communication fixtures, equipment, and apparatus, all engines, motors,
conduits, pipes, pumps, tanks, ducts, compressors, boilers, water heaters, and furnaces,
irrigation and sprinkler systems, all of which items shall be deemed part of the Realty and
not severable wholly or in part without material injury thereto, provided, however, that
Beneficiary agrees that this Deed of Trust shall be subject and subordinate to all leases,
financing statements, security agreements and security instruments executed by Grantor
in connection with the purchase or lease of any televisions, satellite equipment, furniture,
or other personal property approved in advance by Beneficiary, which approval shall not
be unreasonably withheld (collectively, "Personal Property Liens");
1.1.6 Landscaping and Maintenance Supplies. All trees, shrubs, turf, sod,
and other growing plants and landscaping, appliances (including stoves, refrigerators,
water fountains and coolers, fans, heaters, incinerators, compactors, dishwashers,
clothes washers and dryers, water heaters and similar equipment), supplies, blinds,
window shades, carpeting, floor coverings, lockers, elevators, office equipment, fire
sprinklers and alarms, control devices, safety and life support systems, awnings,
equipment (including all window cleaning, building cleaning, swimming pool, recreational,
monitoring, garbage, air conditioning, pest control and other equipment), tools,
furnishings, furniture, light fixtures, non-structural additions to the Realty, landscaping and
maintenance equipment, vehicles, and all other tangible property of any kind or character
now or hereafter owned by the Grantor and used in connection with the Realty, any
construction undertaken on the Realty, any trade, business or other activity of Grantor
(whether or not engaged in for profit) for which the Realty is used, the maintenance of the
Realty, or the convenience of any guests, licensees or invitees of the Grantor, all
regardless of whether located on the Realty or located elsewhere for purposes of
Page-3
fabrication, storage or otherwise, and all of which items shall also be deemed part of the
Realty and not severable wholly or in part without material injury thereto;
any variant thereof under
1.1.7 ~' Al~ goodwill, all names or may at any time be owned
which or by which the Realty and the improvements thereonor any variant
and operated, a~ rights to carry on business under any such names
thereof, all trademarks, trade names, patents pending, option rights, purchase contracts,
policies of casualty or liability insurance with respect to the Prope~, and any proceeds,
claims, or awards thereunder, eminent domain claims, awards, and judgments, and
general intangibles of the Grantor retating to the Realty or the improvements thereon and
all accounts, contract rights, instruments, chattel paper and other rights of the Grantor for
payment of money, for property sold or lent, for services rendered, for money tent, or for
advances or deposits made, and any other intangible property of the Grantor related to
the Realty or the improvements thereon; laundry room and vending machine
income, parking revenues, rent , ro ,
derived or owned by the Grantor directly or indirectly from the Realty or the improvements
thereon, and all accounts in which such revenues are deposited or maintained;
ri hts of the Grantor under all leases,
agreements, or other.,rra? ;:r'
censes, renta or entered nto at any ,me,
whether written or oral, wn~,,,~, any consideration for the use, possession or
whereby any person agrees to pay money or
occupancy of, or any estate in, the Realty or the improvements thereon or any part
thereof, and all rents, income, profits, benefits, advantages, and claims against
guarantors thereof;n~' Al rights of the Grantor to plans and
1.1.17 Pi n ~ _:.~'..~.~--., ~ts architectural plans, engineering plans
specifications, designs, drawtngs, s~te p~a.o, ~,.- ,
and reports, wetlands studies, test bores, traffic reports and studies, soils and geologic
studies and reports, and any other work product relating to development of or
construction on the Realty; all of Grantor's rights under any payment, performance or
other bonds in connection with construction or furnishing of improvements on the Realty;
and all governmental permissions, environmental clearances, authority to subdivide the
Realty, rights, licenses, permits and approvals as are necessary for the commencement,
continuation, completion, occupancy, use and disposition of any part or all of the
Property;
Page
1.1.11 Contract Rights. All rights of the Grantor under any contracts
executed by the Grantor as owner with any provider of goods or services for or in
connection with any construction undertaken on, or services performed or to be
performed in connection with, the Realty or the improvements thereon, including, without
limitation, management agreements, maintenance agreements, service contracts,
consulting agreement, water agreements, construction contracts, and architectural or
engineering contracts;
1.1.12 Rights as Seller or Borrower. All rights of the Grantor as seller or
borrower under any agreement, contract, understanding or arrangement pursuant to
which the Grantor has obtained the agreement of any person to pay or disburse any
money for the Grantor's purchase (or borrowing on the security) of the Property or any
part thereof;
1.1.13 Licenses. All licenses, franchises, royalty arrangements and other
contracts relating to operation of the Realty or otherwise relating to the Property; and
1.1.14 Miscellaneous: Proceeds. All other personal property of every kind
and description, whether now existing or hereafter acquired, now or at any time hereafter
attached to, erected upon, situated in or upon, forming a part of, appurtenant to, used in
the construction or operation of or in connection with, or arising from the use or enjoyment
of all or any portion of, or from any lease or agreement pertaining to the Realty, and all
proceeds (including insurance or condemnation proceeds), products, replacements, and
substitutions of any of the Property.
1.2 Secured Obligations. This Deed of Trust with Assignment of Rents and
Security Agreement is given as security for the following: (collectively, the "Secured
Obligations"):
1.2.1 Payment of all amounts due under the Guaranty, including but not
limited to principal, accrued interest, and any other amounts or advances, according to
the terms and provisions of the Loan; and
1.2.2 Payment of all sums advanced by Beneficiary to protect the security
of this Deed of Trust, together with interest thereon as provided herein.
Page-5
ARTICLE II- TITLE AND USE
2.1 Warranty_ of Title. Grantor represents and warrants to Beneficiary that: (i)
Grantor is the sole holder of fee title to the Realty and has good and marketable title to
the Property; (ii)the Property is free from liens, encumbrances, exceptions, or other
charges of any kind whatsoever other than approved Personal Property Liens and the
"Permitted Exceptions" listed on the attached Exhibit"B" and any other liens,
encumbrances, exceptions, or charges expressly permitted by the terms of this Deed of
Trust, and no other encumbrances, whether superior or inferior to this Deed of Trust, will
be created or suffered to be created by Grantor during the life of this Deed of Trust
without the prior written consent of Beneficiary; (iii) no default on the part of Grantor or
any other person exists under any of the obligations evidenced or secured by the
Permitted Exceptions and, as applicable, all are in full force and effect and in good
standing, without modification, except as disclosed on Exhibit "B"; and (iv) Grantor has
the right to grant, transfer, convey, and assign the Property as herein provided and will
forever warrant and defend the Property unto Beneficiary against all claims and demands
of any other person whomsoever, subject only to nondelinquent installments of taxes and
assessments and the Permitted Exceptions. Grantor shall appear in and defend any
action or proceeding purporting to affect the security hereof or the rights or powers of
Beneficiary or Trustee and shall pay all costs and expenses, including cost of evidence of
title and actual attorney's fees, in any such action or proceeding in which Beneficiary or
Trustee may appear.
2.2 Non-Agricultural Use. Grantor represents and warrants to Beneficiary that
the Property is not currently used for agricultural or farming purposes.
2.3 Commercial Deed of Trust. Grantor represents and warrants to Beneficiary
that this Deed of Trust and the Loan are and at all times will be for business and
commercial purposes.
ARTICLE III - GRANTOR'S COVENANTS
3.1 Payment and Performance of Secured Obligations. Pursuant to and
subject to the terms and conditions of the Guaranty, including those which limit recourse
under the Guaranty to the Property, Grantor shall pay when due all sums that are now or
that may become owing on the Loan Agreement and Promissory Note, in accordance
with their terms.
Page -6
3.2 Payment of Taxes. Utilities. Liens and Charges.
3.2.1 Taxe,s and Assessments. Except as the same may otherwise be
paid under Article IV relating to reserves, Grantor shall pay when due directly to the
payee thereof all taxes and assessments (including, without limitation, nongovernmental
levies or assessments such as maintenance charges, owner association dues or charges,
or fees, levies, or charges resulting from covenants, conditions, or restrictions) levied,
assessed, or charged against or with respect to the Property or this Deed of Trust.
Grantor shall promptly furnish to Beneficiary all notices of amounts due under this Section
3.2.1 and all receipts evidencing such payments. Without in any way limiting the
generality of the foregoing provisions of this Section 3.2.1., if, during the term of the Loan,
subject to Grantor's right to contest such tax, there is any change in applicable law that
results in Beneficiary being subjected to: (i) any tax measured by or based on, in whole or
in part, the indebtedness secured hereby (but not taxes imposed on Beneficiary's gross
revenues or net income), or (ii)any portion of any tax payable with respect to the
Property, Grantor shall, on demand, pay to Beneficiary the amount of any such tax paid
by Beneficiary or shall promptly prepay the Secured Obligations (without the obligation to
pay any prepayment penalty otherwise required under the Note).
3.2.2 ~. Grantor shall pay when due all water and utility charges and
assessments for water and services furnished the Property.
3.2.3 ~. Grantor shall pay when due the claims of all
persons supplying labor or materials to or in connection with the Property. Without
waiving the restrictions of Article V, Grantor shall promptly discharge any lien or other
charge not constituting a Permitted Exception, whether superior or inferior to this Deed of
Trust, which may be claimed against the Property. Notwithstanding the foregoing
provisions of this Section 3.2.3, Grantor shall not be deemed to be in default under this
Section 3.2.3 if and so long as: (i) Grantor contests in good faith the validity or amount of
any asserted lien or other charge and diligently prosecutes or defends an action
appropriate to obtain a binding determination of the disputed matter, (ii) nonpayment of
such lien or charge does not result in the loss or forfeiture of any of the Property or any
interest therein, and (iii) Grantor furnishes cash, a surety bond, or other security in form
and content and issued by a company reasonably satisfactory to Beneficiary, as security
for any payment that may ultimately be required to discharge the lien or charge, in an
amount equal to 150 percent of the amount of the asserted lien or charge. Beneficiary
agrees that a surety bond in the amount required hereunder and otherwise satisfying the
Page-7
requirements of any applicable law relating to bonding around such a lien or charge shall
be satisfactory to Beneficiary under clause (iii) above.
3.3 insurance.
3.3.1 Coverages Required. Grantor shall keep the following insurance
coverages in effect with respect to the Property (or such other coverages as Beneficiary
has approved in writing):
3.3.1.1 Comprehensive proDertygc=mera~- ........ ~ insurance with
premiums prepaid covering the Property and providing not less than full replacement cost
coverage, in an amount equal at all times to the full insurable value of the Improvements,
Furnishings and Fixtures on the Realty, including the cost of demolition or removal of
debris and contents thereof, and insuring against loss by fire and such other risks covered
by extended coverage insurance, and such other perils and risks, including loss of rents
and business interruption, as Beneficiary may reasonably require, and for such periods as
Beneficiary may require;
3.3.1.2 Flood risk insurance in the maximum amount of
insurance coverage available or the full replacement cost of the buildings on the Property,
whichever is less, if and only if the Property is now or hereafter designated as being
located within the 100-year flood plain under the federal flood insurance program and if
flood insurance is available; and
3.3.1.3 Comprehensive public liability insurance against claims
for bodily injury, death, or property damage occurring on, in, or about the Property
(including coverage for elevators and escalators, if any, on the Property), with the
coverage in an amount of not less than $1,000,000.00, or in such greater amount as
Beneficiary may reasonably require.
All such policies may be carried under blanket policies and with reasonable deductible
amounts.
3.3.2 Policies. Each insurance policy shall be issued by a company
reasonably acceptable to Beneficiary and licensed to do business in the state in which the
Property is located and shall be in a form reasonably acceptable to Beneficiary. All
required policies will provide for at least thirty (30) days' written notice to Beneficiary prior
to the effective date of any cancellation or material amendment, which term shall include
Page -88
any reduction in the scope or limits of coverage. Grantor shall furnish to Beneficiary a
certificate of insurance setting forth the coverage, the limits of liability, the carrier, the
policy number, and the expiration date. As additional security for the Secured
Obligations, Grantor hereby assigns to Beneficiary all insurance policies covering the
Property, together with all proceeds thereof, rights thereto, and all unearned premiums
returnable upon cancellation. In the event of Beneficiary's foreclosure against the
Property or other transfer of title in the Property to Beneficiary in lieu of foreclosure, all of
Grantor's interest in and to any and all insurance policies in force shall pass to the
Beneficiary or to such other transferee or purchaser, and Beneficiary is hereby irrevocably
authorized to assign in Grantor's name to such purchaser or transferee all such policies,
which policies may be amended or rewritten to show the interest of such purchaser or
transferee.
3.3.3 Payment; Renewals. Grantor shall promptly furnish to Beneficiary all
renewal notices relating to insurance policies. Except as the same may otherwise be paid
under Article IV relating to reserves, Grantor shall pay all premiums on insurance policies
directly to the carrier. At least ten (10) days prior to the expiration date of each such
policy, Grantor shall furnish to Beneficiary a renewal certificate of insurance in a form
acceptable to Beneficiary, including evidence that the renewal premium has been paid.
3.3.4 Insurance Proceeds.
3.3.4.1 In the event of any loss in excess of $10,000.00,
Grantor shall give prompt written notice thereof to the insurance carrier and Beneficiary.
Grantor hereby authorizes Beneficiary, as Grantor's attorney-in-fact, to make proof of
loss, to adjust and compromise any claim, to commence, appear in, and prosecute, in
Beneficiary's or Grantor's names, any action relating to any claim and to collect and
receive insurance proceeds; provided, however, that Beneficiary shall have no obligation
to do so.
3.3.4.2 Beneficiary shall apply any insurance proceeds
received by it hereunder first to the payment of the reasonable costs and expenses
incurred in the collection of the proceeds and then, in its absolute discretion, and without
regard to the adequacy of its security, to:
3.3.4.2.1 The payment of any indebtedness secured
hereby, in such order as Beneficiary may determine, whether then due and payable or
not. No such application of proceeds to principal on the Loan shall extend or postpone
Page-9
the due dates of the installment payments under the Loan or change the amounts
thereof, nor shall any prepayment fee be payable under the Loan with respect to any
such application of proceeds to principal on the Note; or
such insurance proceeds
prescribed by Beneficiary.
3.3.4.2.2 The disbursement to Grantor of all or any part of
under any disbursement control procedures reasonably
Notwithstanding the foregoing provisions of this Section, if there exists no outstanding
Event of Default under any of the Loan Documents and Grantor establishes, in
Beneficiary's reasonable discretion, that Grantor has sufficient funds, including such
insurance proceeds, to fully rebuild or repair the improvements on the Realty, Beneficiary
shall release insurance proceeds in accordance with Section 3.3.4.2.2 for purposes of
repair or restoration of the Property, in accordance with such reasonable disbursement
control procedures as Beneficiary may require.
3.3.5 Transfer of Title. If the Property is sold to Beneficiary pursuant to a
foreclosure sale or if Beneficiary otherwise acquires title to the Property, Beneficiary shall
have all of the right, title, and interest of Grantor in and to any insurance policies and
unearned premiums thereon and in and to the proceeds resulting from any damage to the
Property prior to such sale or acquisition.
3.4 Preservation and Maintenance of Property_: Management: Right of Entry_.
3.4.1 Preservation and Maintenance. Grantor: (i)shall not commit or
suffer any waste or permit any impairment or deterioration of the Property, (ii) shall not
abandon the Property, (iii) shall restore or repair promptly and in a good and workmanlike
manner all or any part of the Property to the equivalent of its original condition, or such
other condition as Beneficiary may reasonably approve in writing, in the event of any
damage, injury, or loss thereto, whether or not insurance proceeds are available to cover
in whole or in part the costs of such restoration or repair, and (iv) shall keep the Property,
including improvements, fixtures, equipment, machinery, and appliances thereon, in good
condition and repair and shall replace fixtures, equipment, machinery and appliances of
the Property when necessary to keep such items in good condition and repair.
3.4.2 Alterations. No building or other major improvement on the Realty
shall be structurally altered, removed, or demolished, in whole or in part, except pursuant
to the documents entered into in connection with the Loan, without Beneficiary's prior
Page-10
/-/7
written consent, not to be unreasonably withheld, nor shall any fixture or chattel covered
by this Deed of Trust and adapted to the use and enjoyment of the Property be removed
at any time without such consent, unless actually replaced by an article of equal
suitability, owned by Grantor or Borrower, free and dear of any lien or security interest
except such as may be reasonably approved in writing by Beneficiary.
3.4.4 Right of Entry_. Beneficiary is hereby authorized to enter the
Property, including the interior of any structures, at reasonable times and after reasonable
notice, for the purpose of inspecting the Property and for the purpose of performing any of
the acts that Beneficiary is authorized to perform hereunder.
3.5 Parking. If any part of the automobile parking areas included within the
Property is taken by condemnation or if such areas are otherwise reduced, Grantor shall
take all necessary actions to provide parking facilities in kind, size and location to comply
with all governmental zoning and other regulations and all leases. Before making any
contract for substitute parking facilities, Grantor will furnish to Beneficiary satisfactory
assurance of completion thereof free of liens and in conformity with all governmental
zoning and other regulations.
3.6 tJse of Property. Grantor shall comply and shall require Borrower to comply
with all laws, ordinances, regulations, and requirements, of any governmental body and
all other covenants, conditions, and restrictions applicable to the Property, including but
not limited to the Fair Housing Act and the Americans with Disabilities Act, and shall make
any and all alterations to the Property that may be required thereunder, and shall pay all
fees, charges, and penalties in connection therewith. Unless required by applicable law
or unless Beneficiary has otherwise agreed in writing, Grantor shall not allow changes in
the use for which all or any part of the Property was intended at the time this Deed of
Trust was executed. Grantor shall not initiate or acquiesce in a change in the land use or
zoning classification of the Property without Beneficiary's prior written consent. Grantor
shall exercise and shall require Borrower to exercise due diligence and care to prevent
any unlawful use, dealing, purchase, or sale of narcotics, drugs, alcohol, firearms, or
other controlled substances on or in the vicinity of the Property.
3.7 Condemnation.
3.7.1 Pr¢6eedings. Grantor shall promptly notify Beneficiary of any action
or proceeding relating to any condemnation or other taking (including, without limitation,
change of grade), whether direct or indirect, of the Property or any part thereof or interest
Page-11
therein, and Grantor shall appear in and prosecute any such action or proceeding un~ess
otherwise directed by Beneficiary in writing. Grantor authorizes Beneficiary, at
Beneficiary's option, as attorney-in-fact for Grantor, to commence, appear in, and
prosecute, in Beneficiary's or Grantor's names, any action or proceeding relating to any
such condemnation or other taking, and to sett~e or compromise any claim in connection
with such condemnation or other taking; provided, however, that Beneficiary shall have
no obligation to do so. All awards, payments, damages (direct, incidental, or
consequential), claims, and proceeds thereof, in connection with any such condemnation
or other taking, or for conveyances in lieu of condemnation, are hereby assigned to
Beneficiary, and all proceeds of any such awards, payments, damages, or claims shall be
paid to Beneficiary subject to the rights of the lessor under any ground lease.
3.7.2 ~Application of Proceeds. Beneficiary shall apply any such proceeds
in the manner and upon the terms and conditions set forth in Section 3.3.4.2. relating to
the application of insurance proceeds.
3.8 Protection of Beneficiary's Security. Should Grantor fail to make any
payment or to do any act as required herein or under the Guaranty, after expiration of all
grace periods, then upon providing written notice to Grantor, Beneficiary or Trustee
(without obligation so to do and without releasing Grantor from any obligation hereof)
may: (i) make or do the same in such manner and to such extent as either may deem
necessary to protect the security hereof, including, if necessary, the completion of
construction of the improvements on the Realty, Beneficiary or Trustee being authorized
to enter upon the Property for such purposes, (ii) commence, appear in, and defend any
action or proceeding purporting to affect the security hereof or the rights or powers of
Beneficiary or Trustee, (iii)pay, purchase, contest, or compromise any encumbrance,
charge or lien which, in the judgment of either appears to be prior or superior hereto,
(iv) take any other reasonable actions as may be necessary or desirable to protect or
enforce the security of this Deed of Trust, to remedy Grantor's failure to perform
covenants (without, however, waiving any default by Grantor), or otherwise to protect
Beneficiary's or Trustee's interests, and (v)in exercising any such powers, incur any
reasonable liability and expend whatever amounts in its reasonable discretion either may
deem necessary therefor, including cost of title reports and employment of counsel.
3.9 Reimbursement of Beneficiary'S and Trustee's Expenses. All amounts
disbursed by Beneficiary and Trustee pursuant to Section 3.8 or any other provision of
this Deed of Trust, with interest thereon, shall be additional indebtedness of Grantor
Page-12
secured by this Deed of Trust. All such amounts shall be due and payable within ten (10)
days after demand.
3.10 Books and Records: Financial Statements. Grantor shall require Borrower
to keep and maintain at Grantor's address stated above, or such other place as
Beneficiary may approve in writing, books of account and records adequate to reflect
correctly the results of the operation of the Property and copies of all written contracts,
leases, and other instruments which affect the Properly.
3.11 Indemnification.
3.11.1 Beneficiary shall have no liability in connection with the construction
of the improvements on the Realty or the use, operations, and maintenance of the
Properb/, and Grantor agrees to defend, fully indemni~ Beneficiary for and hold entirely
free and harmless Beneficiary from and against any and all losses, liabilities, suits,
obligations, fines, damages, judgments, penalties, claims, charges, costs and expenses,
including but not ;imited to, attorney's fees, court costs and disbursements (collectively
"Claims") that may be imposed on, incurred or paid by or asserted against Beneficiary by
reason or on account of, or in connection with or arising out of: (i) the deposit or release
of any Hazardous Substance (any substance or material defined or designated as
hazardous or toxic waste, hazardous or toxic material, or hazardous, toxic, or radioactive
substance, or other similar term under federal, state or local statute, regulation, or
ordinance now or hereafter in effect) on the Property after the date when Grantor has
acquired title to the Property, including, but not limited to, the cost of correcting such
environmental hazard or violation, the payment of any damages or penalties charged or
imposed by any applicable court or governmental agency and/or the costs of investigating
and defending any charge or action brought under any Environmental Enactment (any
statute, ordinance or regulation regulating the use, storage, or disposal of any Hazardous
Substances) by any governmental entity or official or any private citizen or group of
citizens, including without limitation, the fees of any attorney or any expert or other
consultant hired in connection with such charge or action, (except with respect to any
liability arising from discharges of Hazardous Substances during any period when
Beneficiary or affiliates of Beneficiary owned the Property), (ii) construction,
reconstruction, or alteration of buildings or other improvements on the Property, (iii) any
negligence or misconduct of Grantor, any lessee or occupant of the Property, or any of
their respective agents, contractors, subcontractors, servants, employees, licensees, or
invitees, (iv) any accident, injury, death or damage to any person or property occurring in,
on or about the Property or any street, drive, sidewalk, curb or passageway adjacent
Page-13
thereto, (v) any seizure or forfeiture under any federal or state drug forfeiture act, and any
fee, penalty, cost of alteration or other liability arising under the Fair Housing Act or the
Americans With Disabilities Act, or (vi) any other transaction arising out of or in any way
connected with the Property, excluding from the foregoing indemnification any claims
arising out of the willful misconduct or gross negligence of the Beneficiary. The parties
hereto intend that under the foregoing indemnity provisions, unless otherwise expressly
limited herein, Grantor shall indemnify Beneficiary against any Claim related to the
Property to the fullest extent permitted by law. Any exculpatory clause contained in the
Note or this Deed of Trust or elsewhere shall not exculpate against any liability from the
provisions of this Section 3.11.
3.11.2 Grantor acknowledges that the indemnifications contained in this
Agreement with respect to Hazardous Substances are intended to operate as
indemnifications under Section 9607(e)(1) of the Comprehensive Environmental
Response, Compensation and Liability Act (42 U.S.C. § 9601 et see.), the Washington
State Model Toxics Control Act (RCW Ch. 70.105D) and the Washington Hazardous
Waste Management Act (RCW Ch. 70.105) as may be hereafter amended, and that such
indemnifications shall remain in full force and effect regardless of whether or not Grantor
is attempting to obtain or has obtained a stay of enforcement proceedings. Grantor
further agrees that its indemnifications with respect to deposit or release of Hazardous
Substances on the Property after Grantor has acquired the Property are separate,
independent of, and in addition to the undertakings of Grantor under the Deed of Trust. A
separate action may be brought to enforce Grantor's indemnifications with respect to such
post-acquisition deposit or release of Hazardous Substances, which shall in no way be
deemed to be an action on the Note, whether or not the Loan has been repaid and/or
whether or not Beneficiary would be entitled to a deficiency judgment following a
foreclosure.
3.12 Right of Subrogation. Grantor acknowledges and agrees that Beneficiary is
fully subrogated to the rights, whether legal or equitable, of all beneficiaries, mortgagees,
lienholders and owners, directly or indirectly paid off or satisfied in whole or in part, by any
proceeds advanced by Beneficiary under the Loan, regardless of whether these parties
assigned or released of record their rights or liens upon the Property upon payment.
3.13 Waivers by Grantor. Without affecting any of Grantor's obligations under
the Loan, Grantor waives: (i) notice of default by any Grantor or any other party liable for
any indebtedness secured by this Deed of Trust; (ii) any right to require Beneficiary to
proceed against any specific party liable for any indebtedness secured by this Deed of
Page-14
Trust, or to proceed or exhaust any specific security for any indebtedness secured by this
Deed of Trust; (iii)diligence, demand for performance, notice of nonperformance,
presentment, protest, notice of dishonor, and notice of new or additional indebtedness of
any Grantor or any other party liable for any indebtedness secured by this Deed of Trust;
(iv) any defense arising out of Beneficiary entering into additional financing or other
arrangements with any Grantor or any party liable for any indebtedness secured by this
Deed of Trust, not relating to the Property, and any action taken by Beneficiary in
connection with any such financing or other arrangements, or any pending financing or
other arrangements not related to the Property; (v)any defense arising out of the
absence, impairment or loss of any or all rights of recourse, reimbursement, contribution
or subrogation, or any other rights or remedies of Beneficiary against any Grantor or any
other party liable for any indebtedness secured by this Deed of Trust or any Property; and
(vi) any obligation of Beneficiary to see to the proper use and application of any proceeds
advanced pursuant to the Loan.
ARTICLE IV - RESTRICTIONS ON TRANSFER OR ENCUMBRANCE:
Grantor acknowledges and agrees that the obligations secured by this Deed of
Trust are personal to Grantor and that the identity of Grantor (and its officers, directors,
members, and partners, as appropriate), Grantor's legal organization, business expertise,
financial condition, and continued control of the Property were material inducements upon
which Beneficiary relied in making the Loan to Borrower. Accordingly, so long as this
Deed of Trust is in effect, then without Beneficiary's prior written consent or except as is
expressly permitted under the terms of the Loan, Grantor shall not, directly or indirectly,
voluntarily or involuntarily, sell, enter into a contract of sale, assign, transfer, dispose of,
alienate, or further encumber all or any portion of or any interest in the Property. Any such
action without Beneficiary's prior written consent shall be deemed to increase the risk of
Beneficiary and shall constitute an Event of Default hereunder. Upon the occurrence of
such Event of Default or at any time thereafter, Beneficiary may, at its option, declare all
sums secured hereby due and payable. In addition, Beneficiary reserves the right to
charge an assumption or transfer fee and/or to increase the interest rate of the Loan
and/or to impose such other conditions as it may deem appropriate as a condition of
granting consent to any sale or further encumbrance against the Property or any other
action requiring such consent hereunder.
Page-15
ARTICLE V o ~NIFGRM COMMERCIAL CODE SECURITY AGREEMENT
5.1 ~:~~. This Deed of Trust constitutes a security agreement
and a financing statement (fixture filing) pursuant to the Uniform Commercial Code, and
Grantor hereby grants and conveys a security interest to Beneficiary with respect to:
5.1.1 Any of the Property described in Article I that, under applicable law,
is not real property or effectively made part of the real property by the provisions of this
Deed of Trust or other applicable law; and
5.1.2 Any and alt other property now or hereafter described on any
Uniform Commercial Code Financing Statement naming Grantor as Debtor and
Beneficiary as Secured Party and affecting or in any way connected with the use and
enjoyment of the Property (any and alt such other property also constituting "Property" for
purposes of this Deed of Trust).
5.2 ~ntent to Regard a~ Real Pro~)erty. Grantor and Beneficiary agree that
neither the foregoing grant of a security interest nor the filing of any such financing
statement shall be construed as in any way derogating from the parties' hereby stated
intention that everything used in connection with the production of income from the
Property or adapted for use therein or which is described or reflected in this Deed of Trust
is and at all times shall be regarded for all purposes as part of the Realty and shall, to the
fullest extent allowed by law, be treated as real property.
5.3 Beneficiary's Right8 and Remedies. With respect to Property subject to the
foregoing security interest, Beneficiary has all of the rights and remedies: (i) of a secured
party under the Uniform Commercial Code, as enacted in the State of Washington,
(ii) provided herein, including, without limitation, the right to cause such Property to be
sold by Trustee under the power of sale granted by this Deed of Trust, and (iii) otherwise
provided by law. In exercising its remedies, Beneficiary may proceed against the items of
real property and any items of personal property separately or together and in any order
whatsoever, without in any way affecting the availability of Beneficiary's other remedies.
Grantor specifically acknowledges that upon Grantor's default, Beneficiary may, among
other remedies, foreclose against any and all personal property in connection with and as
a part of Beneficiary's foreclosure against the Realty (whether through judicial process or
a non-judicial foreclosure) and that including such personal property within a foreclosure
against the Realty wi~ be commercially reasonable and consistent with applicable law.
Upon demand by Beneficiary following an Event of Default hereunder, Grantor shall
Page-16
5'._7
assemble any items of personal property and make them available to Beneficiary at the
location of the Realty, which is a place that is hereby deemed to be reasonably
convenient to both parties. Beneficiary shall give Grantor at least ten (10) days' prior
written notice of the time and place of any public sale or other disposition of such
Property, or of the time of or after which any private sale or any other intended disposition
is to be made. Any person permitted by taw to purchase at any such sale may do so.
Such Property may be sold at any one or more public or private sales, as permitted by
applicable law. All expenses incurred in realizing on such Property shall be borne by
Grantor. Beneficiary shatt also have the right to apply the Realty and all other Property
toward full satisfaction of the Secured Obligations in accordance with applicable laws
governing foreclosures of deeds of trust and UCC security interests.
ARTICLE VI - ASSIGNMENT OF LEASES AND RENTS
6.1 Assi_~nment of Leases and Rents. Subject to Section 6.2, as part of the
consideration for the indebtedness evidenced by the Note, and as additional security
therefor, Grantor hereby presently, absolutely, and unconditionally, assigns and transfers
to Beneficiary all present and future right, title, and interest of Grantor in and to any and
all present and future leases, tenancy or occupancy agreements, rental agreements, or
other arrangements, whether written or oral, whether now existing or entered into at any
time hereafter, whereby any person agrees to pay money or any consideration for the
use, possession or occupancy of, or any estate in, the Realty, the improvements thereon,
or the Property or any part thereof, including alt cash or security deposits, advance rentals
and deposits, or payments of a similar nature, and any and all guarantees of tenants' or
occupants' performances under any and all such leases, and gives to and confers upon
Beneficiary the absolute and unconditional right, power, and authority, during the
continuance of this Deed of Trust, to collect any and all residential and commercial rents,
royalties, income, profits, and other payments that are now due or may at any time
become due, or to which Grantor is now or may hereafter become entitled or may
demand or claim (including rents coming due during any redemption period), arising
under such leases or rental agreements, including, without limitation, minimum,
additional, and percentage rents and liquidated damages (collectively, the "Rents").
6.2 (~rantQr's License to Collect Rents. So long as no Event of Default has
occurred, Grantor may collect and retain Rents as they become due and payable.
However, during the period such Event of Default remains uncured, Beneficiary may at
any time, without notice, either in person, by agent, or by a receiver to be appointed by a
court, and without regard to the adequacy of any security for the indebtedness hereby
Page-17
secured, enter upon and take possession of the Property or any part thereof, in its own
name sue for or otherwise collect such Rents, including those past due and unpaid, and
apply the same, less costs and expenses of operation and collection, including actual
attorney's fees, against any indebtedness secured hereby, and in such order as
Beneficiary may determine. Failure or discontinuance of Beneficiary at any time, or from
time to time, to collect any such amounts shall not in any manner affect the subsequent
enforcement by Beneficiary of the right, power, and authority to collect the same.
6.3 NQ Cure, Waiver, or Affirmation. Beneficiary's entering upon and taking
possession of the Property, the collection of Rents, and the application thereof as set
forth above, shall not cure or waiver any default or notice of default hereunder or
invalidate any act done pursuant to such notice. Nothing contained herein, nor the
exercise of the right by Beneficiary to collect Rents, shall be or be construed to be an
affirmation by Beneficiary of any tenancy, lease or option, nor an assumption of liability
under, nor a subordination of the lien or charge of this Deed of Trust, to any such
tenancy, lease or option.
ARTICLE VII - EVENTS OF DEFAULT
7.1 Even~. The occurrence of any one or more of the following shall
constitute an event of default hereunder:
7.1.1 Failure to make any payment under the Guaranty or this Deed of
Trust, within ten (10) days after the date on which such payment is due;
7.1.2 Failure to perform any other covenant, agreement, or obligation
under the Guaranty or this Deed of Trust and the failure to cure such default within fifteen
(15) days after written notice thereof given to Grantor by Beneficiary or, if such cure
cannot be completed within such fifteen (15) day period through the exercise of diligence,
the failure by Grantor to commence the required cure within such fifteen (15) day period
and thereafter to continuously proceed with the cure with all due diligence;
7.1.3 A default by Grantor on its obligations secured by any of the
Permitted Exceptions or otherwise secured by the Property that is not cured within any
time period for cure set forth in the documents creating such obligations;
7.1.4 A transfer or purported transfer in violation of Article IV;
Page-18
5'5'
7.1.5 Grantor or any trustee of Grantor files a petition in bankruptcy or for
an arrangement, reorganization, or any other form of debtor relief; or such a petition is
filed against Grantor or any trustee of Grantor and is not dismissed within forty-five (45)
days after the date of filing;
7.1.6 A decree or order is entered for the appointment of a trustee,
receiver, or liquidator for Grantor or Grantor's property, and such decree or order is not
vacated within forty-five (45) days after the date of entry;
7.1.7 Grantor commences any proceeding for dissolution or liquidation or
any such proceeding is commenced against Grantor and is not dismissed within forty-five
(45) days after the date of commencement;
7.1.8 Grantor makes an assignment of all or substantially all of its assets
for the benefit of its creditors, or admits in writing its inability to pay its debts generally as
they become due; or
7.1.9 Any written representation or disclosure made to Beneficiary by
Grantor proves to be materially false or misleading when made, whether or not that
written representation or disclosure is contained herein or in any of the other Loan
Documents, and such misrepresentation was not a good faith error or omission.
7.2 Form of Notice. At Beneficiary's option, any written notice of default
required to be given to Grantor under Section 7.1 may be given in the form of a statutory
notice of default under the laws of the State of Washington relating to non-judicial
foreclosures of trust deeds.
ARTICLE VIII - REMEDIES
8.1 Acceleration Upon Default: Additional Remedies. Upon the occurrence of
an Event of Default hereunder, Beneficiary may, at its option and after providing notice of
such default to Grantor in accordance with the Loan Agreement:
8.1.1 Declare any or all indebtedness secured by this Deed of Trust to be
due and payable immediately, in which case the entire principal balance and accrued
interest, together with any other amounts due upon the Loan shall thereupon become
immediately due and payable and shall thereafter bear interest at the Default Rate.
Page-19
8.1.2 Bring a court action to enforce the provisions of or any of the
indebtedness or obligations secured by this Deed of Trust.
8.1.3 Foreclose this Deed of Trust as a mortgage pursuant to a judicial
proceeding.
8.1.4 Cause any or all of the Property to be sold under the power of sale
granted by this Deed of Trust in any manner permitted by applicable law, including but not
limited to laws governing non-judicial foreclosures of trust deeds and realization of
security interests under the Uniform Commercial Code.
8.1.5 Exercise any or all of the rights and remedies provided for herein or
in the Guaranty in the event of default hereunder.
8.2 Exercise of Power of Sate. For any sale under the power of sale granted by
this Deed of Trust, Beneficiary or Trustee shall record and give all notices required by law
and then, upon the expiration of such time as is required by law, Trustee may sell the
Property upon any terms and conditions specified by Beneficiary and permitted by
applicable law. Trustee may postpone any sale by public announcement at the time and
place noticed for the sale. If the Property includes several distinct lots or parcels,
Beneficiary, in its discretion, may designate their order of sale, or may elect to sell ail of
them as an entirety. The Property, real, personal, and mixed, may be sold in one or more
parcels, or in one sale or successive sales, as permitted by applicable law. Any person
permitted by law to do so may purchase at any sale. Upon any sale, Trustee will execute
and deliver to the purchaser or purchasers a deed or deeds conveying the Property sold,
but without any covenant or warranty, express or implied, and the recitals in the Trustee's
deed showing that the sale was conducted in compliance with all the requirements of law
shall be prima facie evidence of such compliance and conclusive evidence thereof in
favor of bona fide purchasers and encumbrancers for value.
8.3 Application of Sale Proceeds. The proceeds of any sale under this Deed of
Trust will be applied in the following manner:
8.3.1 First, to payment of the costs and expenses of the sale, including,
without limitation, Trustee's fees, attorney's fees and disbursements, title charges and
transfer taxes, and payment of a~l expenses, liabilities, and advances of Trustee, together
with interest thereon, if permitted by law, from the date of disbursement at the Default
Rate under the Loan or the maximum rate permitted by applicable law, if less.
Page-20
5'7
8.3.2 Second, to payment of all sums advanced or expended by
Beneficiary on behalf of Grantor or to protect Beneficiary's interest in the Property in
accordance with the terms of this Deed of Trust that have not yet been repaid, together
with interest on such sums from date of disbursement at the Default Rate under the Loan
or the maximum rate permitted by applicable law, if less.
8.3.3 Third, to payment of all other indebtedness secured by this Deed of
Trust (including, without limitation, any applicable late fees, prepayment fees, default
interest, interest, principal, and other charges) in any order that the Beneficiary chooses.
8.3.4 Fourth, the remainder, if any, to the person or persons legally entitled
to it.
8.4 Waiver of Order of Sale and Marshallina. Beneficiary may take or release
other security, release any party primarily or secondarily liable for any indebtedness
secured hereby, and may grant extensions, renewals, and indulgences with respect to
such indebtedness and may enforce or apply any other security or proceeds in which it
may have an interest to the indebtedness secured hereby simultaneously or in any order
it may so choose. Grantor waives all rights to direct the order in which any of the
Property will be sold in the event of any sale under this Deed of Trust, and also any right
to have any of the Property marshalled upon any sale.
8.5 Right to Possession. In any case in which, under the provisions of this
Deed of Trust, Beneficiary has a right to direct Trustee to sell the Property or to institute
foreclosure proceedings, immediately upon demand of Beneficiary, Grantor shall
surrender to Beneficiary and Beneficiary shall be entitled to take actual possession of the
Property or any part thereof, personally or through its agent or representatives. In such
event, Beneficiary, in its sole discretion, may enter upon and take and maintain
possession of all or any part of the Property, together with all documents, books, records,
papers, and accounts of Grantor or then-owner of the Property relating thereto, and may
exclude the Grantor, its agents and servants therefrom and may, as attorney-in-fact and
agent of Grantor, or in its own name as Beneficiary under the powers herein granted,
hold, operate, manage, and control the Property and conduct the business thereof,
including the completion of construction of any improvements thereon, either personally
or through its agents, and with full power to use such measures, legal or equitable, as in
its discretion, or in the discretion of its successors or assigns, may be deemed proper and
Page-21
necessary to enforce the obligations of Grantor hereunder or under any of the other Loan
Documents.
8.6 Appointment of Receiver. On the occurrence of an Event of Default
hereunder, Beneficiary shall also be entitled, without notice, without bond, and without
regard to the adequacy of the Property as security for the Loan, to the appointment of a
receiver for the Property. The receiver shall have, in addition to all the rights and powers
customarily given to or exercised by a receiver, all the rights and powers granted to
Beneficiary hereunder or under any of the other Loan Documents, including, without
limitation, the right to complete any construction in progress on the Realty and, in that
connection, to pay bills, borrow funds, employ contractors, and make any changes in
plans or specifications as Beneficiary deems reasonably necessary or appropriate. If the
revenues produced by the Realty are insufficient to pay expenses, the receiver may
borrow from Beneficiary, or otherwise, or Beneficiary may borrow or advance, such sums
as the receiver or Beneficiary may deem reasonably necessary for the purposes stated in
this section. The amounts borrowed or advanced shall be payable by Grantor on demand
and bear interest from the date of expenditure until repaid at the Loan rate (including any
applicable Default Rate) and shall become a part of the debt secured by this Deed of
Trust.
8.7 Non-Waiver of Defaults. The entering upon and taking possession of the
Property, the appointment of a receiver, the collection of any partial payment, Rents, the
proceeds of fire and other insurance policies, or compensation or awards for any taking or
damage of the Property, and the application or release thereof, as herein provided, shall
not cure or waiver any default or notice of default hereunder or invalidate any act done
pursuant to such notice.
8.8 Expenses During Redemption Period. If this Deed of Trust is foreclosed as
a mortgage and the Property is sold at a foreclosure sale, the purchaser may, during any
redemption period allowed, make such repairs or alterations on the Property as may be
reasonably necessary for the proper operation, care, preservation, protection, and
insuring thereof. Any reasonable sums so paid, together with interest thereon from the
time of such expenditure shall be added to and become a part of the amount required to
be paid for redemption from such sale.
8.9 Remedies Cumulative. To the fullest extent permitted by law, every right
and remedy provided in this Deed of Trust is distinct from and cumulative to alt other
rights or remedies under this Deed of Trust or afforded by law or equity or any other
Page-22
agreement between Beneficiary and Grantor, and may be exercised concurrently,
independently, or successively, in any order whatsoever. Beneficiary may exercise any of
its rights and remedies at its option without regard to the adequacy of its security.
8.10 Beneficiar~'s and Trustee's Expenses. Grantor shall pay all of Beneficiary's
and Trustee's reasonable expenses incurred in any effort to enforce any terms of this
Deed of Trust, whether or not any suit is filed, including, without limitation, attorney's fees
and disbursements, foreclosure costs, and title charges. All such sums, with interest
thereon, shall be additional indebtedness of Grantor secured by this Deed of Trust. Such
sums shall be due and payable ten (10) days after Beneficiary's demand therefor, and
shall bear interest from the due date at the Default Rate under the Loan, or the maximum
rate that may be collected from Grantor under applicable law, if less.
8.11 No Merger. Grantor expressly agrees that, in the event the Beneficiary or
any successor in interest to the Beneficiary obtains title to the Property through
foreclosure, deed in lieu thereof or otherwise, (I) the title to the Property transferred
thereby shall not be merged with the interest conveyed by this Deed of Trust to the fullest
extent required to preserve the Beneflciary's rights under the Collateral Assignment of
Operating Agreement of even date herewith covering the Operating agreement for the
Property between the Grantor and the Borrower, and (ii) the obligations of the Borrower to
the Beneficiary secured by the Collateral Assignment shall not be satisfied thereby.
8.12 Non-Recourse Obligation. Anything in this Deed of Trust notwithstanding
,the obligations and undertakings of Grantor herein shall not be personal obligations or
undertakings and shall be satisfied solely from, and Beneficiary's recovery hereunder
against Grantor shall be limited to the Property.
ARTICLE IX - GENERAL PROVISIONS
9.1 Application of Payments. Except as otherwise provided under applicable
law, this Deed of Trust or any other Loan Documents, all payments received by
Beneficiary under the note or this Deed of Trust shall be applied by Beneficiary in the
following order of priority:
9.1.1 Beneficiary's reasonable attorney's and trustee's fe,:-s, costs of
collection, and advances made to protect the security of this Deed of Trust, together with
interest thereon, and any prepayment fee;
Page-23
9.1.2 Interest and late charges, including Default Interest payable under
the Guaranty or this Deed of Trust; and
9.1.3 Principal of the Loan;
or in such other order as Beneficiary may determine in its sole discretion.
9.2 R~(;onveyance. Upon payment of ail sums secured by this Deed of Trust,
Beneficiary shall request Trustee to reconvey the Property and shall surrender to Trustee
this Deed of Trust and all notes evidencing indebtedness secured by this Deed of Trust.
Trustee shall reconvey the Property without warranty to the person or persons legally
entitled thereto. The grantee in any reconveyance may be described as the "person or
persons legally entitled thereto," and the recitals therein of any matters or facts shall be
conclusive proof of the truthfulness thereof. Such person or persons shall pay Trustee's
reasonable costs incurred in so reconveying the Property.
9.3 Successor Trustee. In accordance with applicable law, Beneficiary may
from time to time appoint a successor trustee to any Trustee appointed hereunder.
Without conveyance of the Property, the successor trustee shall succeed to all the title,
power, and duties conferred upon the Trustee herein and by applicable law.
9.4 Beneficiary's Powers. Without affecting the liability of any person for
payment or performance of the Secured Obligations, Beneficiary, at its option, may
extend the time for payment of the indebtedness secured hereby or any part thereof,
reduce payment thereon, release anyone liable on any of said indebtedness, accept a
renewal note or notes therefor, modify the terms and time of payment of the
indebtedness, release the lien of this Deed of Trust on any part of the Property, take or
release other or additional security, release or reconvey or cause to be released or
reconveyed all or any part of the Property, consent or cause Trustee to consent to the
making of any map or plat of the Property, consent or cause Trustee to consent to the
granting of any easement or the creating of any restriction on the Property, or join or
cause Trustee to join in any subordination or other agreement affecting this Deed of Trust
or the lien or charge hereof. Grantor shall pay Beneficiary a reasonable service charge,
together with such title insurance premiums and attorney's fees as may be incurred at
Beneficiary's option, for any such action if taken at Grantor's request. If Grantor shall
grant any lien, mortgage or deed of trust on the Property junior to this Deed of Trust, such
junior lien, mortgage or deed of trust shall be subject to all such renewals and extensions,
modifications, releases, increases, changes, or exchanges, without the consent of such
Page-24
junior lienholder, mortgage holder, or deed of trust beneficiary, and without any obligation
to give notice of any kind thereto.
9.5 ~No Violation of Usury Laws. Interest, fees, and charges collected or to be
collected in connection with the indebtedness secured hereby sha~ not exceed the
maximum, if any, permitted by any applicable ~aw. If any such law is interpreted so that
said interest, fees, or char§es would exceed any such maximum and Grantor is entitled to
the benefit of such law, then: (i) such interest, fees, or charges shall be reduced to the
permitted maximum, and (ii)any sums already paid to Beneficiary that exceeded the
permitted maximum shall be refunded. Beneficiary may choose to make the refund either
by treating the payments, to the extent of the excess, as prepayments of principa~ (in this
case, without any prepayment fee) or by making a direct payment to the persons entitled
thereto. The provisions of this Section 9.6 shall control over any inconsistent provision of
this Deed of Trust or the Guaranty.
9.6 ASditional Documents: Power of Attorney. From time to time, upon
reasonable request of Beneficiary, Grantor shall execute, acknowledge, and deliver to
Beneficiary and, if appropriate, file and record, such security agreements, assignments for
security purposes, assignments absolute, financing statements, affidavits, certificates,
and other documents, in form and substance satisfactory to Beneficiary, as Beneficiary
may reasonably request in order to perfect, preserve, continue, extend, or maintain the
assignments herein contained, the lien and security interest under this Deed of Trust, and
the priority thereof. Grantor shall pay to Beneficiary, upon request therefor, all reasonable
costs and expenses incurred in connection with the preparation, execution, recording,
and filing of any such document.
9.7 .Forbearance b~, Beneficiary Not a Waiver. Any forbearance by Beneficiary
in exercising any right or remedy hereunder or otherwise afforded by applicable law shall
not be a waiver of or preclude the exercise of any other right or remedy, and no waiver by
Beneficiary of any particular default by Grantor shall constitute a waiver of any other
default or of any similar default in the future. Without limiting the generality of the
foregoing, the acceptance by Beneficiary of payment of any sum secured by this Deed of
Trust, after the due date thereof, shal~ not be a waiver of Beneficiary's right either to
require prompt payment when due of all other sums so secured, or to declare a default for
failure to make prompt payment. The procurement of insurance or the payment of taxes
or other liens or charges by Beneficiary shal~ not be a waiver of Beneficiary's right to
accelerate the maturity of the indebtedness secured by this Deed of Trust, nor shall
Beneficiary's receipt of any awards, proceeds, or damages under Sections $.3 and 3.7
Page-25
operate to cure or waive Grantor's default in payment of sums secured by this Deed of
Trust.
9.8 Modifications. This Deed of Trust cannot be waived, changed, discharged,
or terminated orally, but only by an instrument in writing signed by the party against whom
enforcement of any waiver, change, discharge, or termination is sought.
9.9 Notices. All notices required or permitted hereunder shall be in writing,
effective upon delivery, and shall be: (i) delivered in person, (ii)sent by certified mail,
postage prepaid, with return receipt requested, to the appropriate address below (such
mailing to be deemed received on the sooner of actual receipt or three (3) days after
mailing), or (iii)dispatched by facsimile transmission (accompanied with reasonable
evidence of receipt of transmission and with a confirmation copy mailed no later than the
day after transmission), and with copies as set forth below:
Grantor:
City of Bremerton, Washington
Beneficiary:
Copy To:
Kitsap County, Washington
Department of Community Development
Kitsap County Courthouse, 614 Division St., MS 36
Port Orchard, WA 98366
Admiral Theatre Foundation
515 Pacific Avenue
Bremerton, WA 98337
Notice of a change of address or facsimile transmission number shall be given by written
notice in the manner detailed above.
9.10 GQverning Law: Severability. This Deed of Trust shall be governed by the
laws of the State of Washington, without regard to that State's conflicts or choice of law
rules. If any provision or clause of this Deed of Trust conflicts with applicable law, such
conflict shall not affect other provisions or clauses hereof that can be given effect without
the conflicting provision, and to this end the provisions hereof are declared to be
severable.
Page-26
9.11 Exhibits. All exhibits referred to in and attached to this Deed of Trust are
incorporated herein by reference.
9.12 Definitions. As used herein, the term "Grantor" means the Grantor herein
named, together with any subsequent owner of the Property or any part thereof or interest
therein; the term "Trustee" means the Trustee herein named, together with any successor
Trustee; and the term "Beneficiary." means the Beneficiary. herein named, together with
any subsequent owner or holder of the Loan and Guaranty or any interest therein,
including pledgees, assignees, and participants. Any terms not defined herein shall have
the meanings provided in the Loan Agreement.
9.13 Successors and Assigns Bound: Joint and Several Liability; Agents.
Grantor acknowledges that Beneficiary. may freely assign, transfer, pledge, or grant
participation rights in the Guaranty and the Deed of Trust. This Deed of Trust shall bind
and inure to the benefit of the parties hereto and their respective heirs, devisees,
legatees, administrators, executors, successors, and assigns, subject to the restrictions
on transfer contained in Article V. All obligations of Grantor hereunder are joint and
several. In exercising any rights hereunder or taking actions provided for herein,
Beneficiary. and Trustee may act through their respective employees, agents, or
independent contractors as authorized by Beneficiary and Trustee.
9.14 Beneficiary's Assignment or Participation.
9.14.1 If requested by Beneficiary, Grantor shall execute an estoppel
certificate, to Grantor's actual knowledge, on which an assignee of the Guaranty and the
Deed of Trust or a participation therein may rely, setting forth such information as is
customarily included in such certificates, including, without limitation, the terms of the
Guaranty, the priority of this Deed of Trust, that there are no defenses, offsets or
counterclaims by Grantor against Beneficiary known to Grantor (or if there are any,
setting forth the same), that the Guaranty and this Deed of Trust are in full force and
effect and that neither Beneficiary. nor Grantor is in default under the Guaranty or this
Deed of Trust.
9.14.2 If, at any time, Beneficiary. desires to setl, transfer, or grant a
participation interest in all or any portion of the Guaranty, this Deed of Trust, to any third
person, Grantor shall furnish, without substantial expense to Grantor, in a timely manner
any and all reasonable estoppel certificates, to Grantor's actual knowledge, and other
Page-27
information concerning the Property and leases thereof, and concerning Grantor's
financial condition and the operating and financing performance of the Property, which
information is requested by Beneficiary or such person in connection with any such sale,
transfer, or participation, and shall be maintained as confidential. All such financial
information shall conform to acceptable accounting principles and practices and shall
otherwise be in such form, substance and detail as Beneficiary, or such person, may
reasonably require.
9.15 Time. Time is of the essence in connection with all obligations of Grantor
under, and Grantor shall strictly comply with all of the terms and conditions of this Deed of
Trust and Guaranty.
9.16 No Dgty of Trustee to Report Other Sales. Trustee is not obligated to notify
any party hereto of any pending sale under any other deed of trust or of any action or
proceeding covering or affecting the Property in which Grantor, Beneficiary, or Trustee
shall be a party unless brought by Trustee.
9.17 Attorney's Fees. In the event any effort or action is reasonably undertaken,
whether or not a lawsuit is instituted, to enforce or interpret any provision of this Deed of
Trust or Guaranty, the prevailing party shall be entitled to recover from the other party its
expenses incurred in connection therewith, including, without limitation, such amount as
the court may adjudge reasonable as attorney's fees at trial or on any appeal or review.
Beneficiary may also recover any attorney's fees and costs that it reasonably incurs as a
result of Grantor's bankruptcy. Any such expenses payable by Grantor shall be additional
indebtedness of Grantor secured by this Deed of Trust, shall be immediately due and
payable, and shall bear interest from the date of disbursement at the Default Rate in
effect on the Loan from time to time or at the maximum rate, if any, permitted under
applicable law, if less.
9.18 IEntire Agreement. This Deed of Trust, together with the Guaranty,
represents the entire agreement of the parties with respect to the Loan and supersedes
any and all prior oral or written agreements with respect thereto.
9.19 Section Headings. The headings of the various sections have been
inserted for convenience of reference only, and shall not be used to construe this Deed of
Trust.
Page-28
9.20 Joint and Several Liability_. If there is more than one Grantor of this Deed of
Trust, their obligations shall be joint and several.
9.21 PerfQrmance of GrantQr's Covenants: The Beneficiary acknowledges and
agrees that any of the Grantor's covenants contained herein may, at the option of the
Grantor, be performed by the Borrower; provided, the rights and remedies of Beneficiary
provided herein may be exercised in the event of any default hereunder, regardless of
whether Grantor or Borrower has assumed the responsibility for performance of the
obligation as to which the default has occurred.
9.22 Non-Recourse Deed of Trust. The obligations and undertakings of the
Grantor contained in this Deed of Trust shall not create or constitute personal obligations
or undertakings of the Grantor, and shall be satisfied solely from, and Beneficiary's
recovery hereunder from or against Guarantor shall be limited to the Property.
9.23 No Oral A_areements. NOTICE: ORAL AGREEMENTS, PROMISES, OR
COMMITMENTS TO LOAN MONEY, EXTEND CREDIT, MODIFY OR AMEND ANY
TERMS OF THE LOAN, RELEASE ANY GUARANTOR, FOREBEAR FROM
ENFORCING REPAYMENT OF THE LOAN OR EXERCISING ANY REMEDY UNDER
THE LOAN DOCUMENTS, OR MAKE ANY OTHER FINANCIAL ACCOMMODATION
PERTAINING TO THE LOAN ARE NOT ENFORCEABLE UNDER WASHINGTON
LAW.
EXECUTED as of the date first set forth above.
GRANTOR:
CITY OFBREMERTON, WASHINGTON
By:
Its
Page -29
STATE OF WASHINGTON )
) SS.
County of Kitsap )
I certify that I know or have satisfactory evidence that is the
person who appeared before me, and said person acknowledged that he/she signed this
instrument, on oath, stated that he/she was authorized to execute the instrument and
acknowledged it as the of CITY OF BREMERTON, WASHINGTON to
be the free and voluntary act of such party for the uses and purposes mentioned in the
instrument.
DATED: ,1996.
NOTARY PUBLIC
Print Name:
My appointment expires:
ACKNOWLEDGMENT OF BORROWER
The Borrower acknowledges and agrees to the terms of the foregoing Deed of
Trust this day of ,1996.
The Admiral Theatre Foundation
RFIOADMIRAL DOT
By:
Page-30
EXHIBIT "A"
LEGAL DESCRIPTION OF REAL PROPERTY
Page-31
EXHIBIT "B"
PERMI'I-I'ED EXCEPTIONS
Page -32
This instrument was prepared
by and when recorded please
return to:
Roy F. Kussmann, Esq.
McGavick Graves, P.S.
P.O. Box 1317
Tacoma, WA 98401-1317
COLLATERAL ASSIGNMENT OF OPERATING AGREEMENT
WITH CONSENT
FOR VALUE RECEIVED, the undersigned THE ADMIRAL THEATRE
FOUNDATION, a Washington non-profit corporation ("Assignor"), does hereby sell,
assign, transfer and set over unto KITSAP COUNTY, WASHINGTON ("Lender"), for
security purposes, all of its right, title and interest in and to that certain Operating
Agreement (the "Operating Agreement") dated September 28, 1990, as amended,
covering the Premises commonly known as 515 Pacific Avenue, Bremerton, Washington,
and more particularly described n Exhibit "A" hereto, including, without limitation,
Assignor's right, title and interest in and to any rents or profits therefrom. This
Assignment is made as additional collateral to secure the payment ~nd performance of
the Loan as defined in the Loan Agreement dated , 1996 (the "Loan
Agreement") by and between the Assignor, and the Lender. Other terms capitalized but
not otherwise defined herein shall have the meanings ascribed thereto in the Loan
Agreement.
ASSIGNOR ACKNOWLEDGES, COVENANTS AND AGREES WITH LENDER AS
FOLLOWS:
1. The terms and conditions of the Loan Agreement are hereby incorporated
herein by reference as if fully set forth herein.
2. Assignor represents and warrants that there have been no prior
assignments of its interest in the Operating Agreement, that the Operating Agreement is a
valid and enforceable agreement, that neither Assignor nor, to its knowledge, any other
party, is in material default thereunder and that all covenants, conditions and agreements
have been performed as required therein, except those not due to be performed until after
the date hereof.
3. No change in the terms of the Operating Agreement shall be valid without
the written approval of Lender and Assignor shall not assign, sell, pledge, mortgage or
otherwise transfer or encumber its interest in, or terminate or permit the termination of the
-1-
762
Operating Agreement so long as this assignment is in effect except (i) as provided in the
Operating Agreement and (ii) as is allowed in the Loan Agreement.
4. Assignor shall give prompt notice to Lender of any notice of default received
by it under the Operating Agreement, together with a complete copy of any such notice.
5. Assignor shall perform each and all of the covenants and obligations of the
tenant under the Operating Agreement for so long as this Assignment is in effect,
including, without limitation, the obligations, if any, to maintain, rebuild and insure the
improvements which constitute a portion of the premises thereunder.
6. Assignor shall not assign its rights under the Operating Agreement without
the written approval of the Lender.
7. Should Assignor fail to make any payment or to do any act as herein
provided, then Lender may, but without obligation to do so, with prior written notice to
Assignor, without releasing Assignor from any obligation in connection with the Loan,
make or do the same, including, without limitation, appearing in and defending any action
purporting to affect the security hereof or the rights or powers of Lender hereunder and
performing any obligation of Assignor under the Operating Agreement, and in exercising
any such powers, paying all necessan~ costs and expenses, including, without limitation,
attorneys' fees. Assignor will pay immediately upon demand all sums expended by
Lender under the authority hereof, and the same shall be added to the Loan and shall be
secured hereby and by the Loan Documents.
8. Lender may at its option, after the occurrence and during the continuance of
any default, without notice and without regard to the adequacy of security for the Loan,
either in person or by agent and with or without bringing any action or proceeding, or by a
receiver to be appointed by a Court, enter upon, take possession of, and operate the
premises which are the subject of the Operating Agreement, make, enforce, modify and
accept any provision of, surrender, the Operating Agreement, and do any other act or
acts which Lender deems proper to protect the security hereof until the Loan has been
paid or performed in full. The entering upon and taking possession of such premises shall
not cure or waive any default or waive, modify or affect any notice of default under the
Loan Agreement or any other of the Loan Documents, nor invalidate any act done
pursuant to any such notice.
9. In addition to any other rights and powers conferred herein, Lender shall
have the right after the occurrence and during the continuance of any default to apply for
the appointment of a receiver of rents and profits of any part or the whole of the premises
which are the subject of the Operating Agreement without notice, and Lender shall be
entitled, as a matter of right, without regard to the value of the premises which are the
subject of the Operating Agreement as security for the amount due or to the solvency of
Assignor or any other party or parties liable for the payment of such amount, to the
appointment of such a receiver of rents and profits with such powers as may De deemed
-2-
necessary, who, after deducting all proper charges and expenses attending the execution
of his trust as receiver shall apply the residue of the said rents and prof'~s to the payment
and satisfaction of the amount remaining secured hereby, or to any deficiency which may
exist after applying the proceeds of the sale of the Assignor's rights in the premises which
are the subject of the Operating Agreement to the payment of the amount due, including
interest and the costs of any reasonable attorneys' fees for the foreclosure and sale in
such order of pdority as Lender shall elect.
10. Assignor hereby irrevocably constitutes and appoints Lender as its attorney-
in-fact to demand, receive, and enforce Assignor's dghts with respect to the Operating
Agreement for and on behalf of and in the name of Assignor or, at the option of Lender in
the name of Lender, with the same force and effect as Assignor could do if this
Assignment had not been made. Lender may, without affecting any of its rights or
remedies against Assignor under any other instrument, document or agreement, exercise
its dghts under this Assignment as Assignor's attorney-in-fact in any other manner
permitted by law, and in addition Lender shall possess, without limitation, any and all
rights and remedies of a secured party under the Uniform Commercial Code of the State
of Washington or otherwise as provided by law.
11. At Assignor's sole cost and expense, Assignor will appear in and defend
any action growing out of or in any manner connected with the Operating Agreement or
the obligations or liabilities of Assignor thereunder.
12,3. This Assignment is for security purposes only. Accordingly, Lender shall
have no right under this Assignment to enforce the provisions of said Operating
Agreement or exercise its rights hereunder unless and until there shall have occurred a
default under the terms of the Loan.
t3_4. Subject to the limitation on further assignment by Assignor set forth above,
this Assignment shall be binding upon and inure to the benefit of the legal
representatives, assigns and successors in interest of Assignor and Lender.
1_4~. All notices hereunder shall be sent to the addresses and pursuant to the
procedures set forth in the Loan Agreement.
-3_8-
TOTAL P.03
16. Assignor warrants and represents that it is the holder of all of the rights of
the "Foundation" under the Operating Agreement; and Assignor has full right and power
to make this Assignment.
17. In addition to the rights and remedies set forth herein, Assignor shall have
all rights and remedies set forth in the Loan Documents.
of
IN WITNESS WHEREOF, Assignor has executed this Assignment this
1996.
day
ASSIGNOR:
THE ADMIRAL THEATRE FOUNDATION
By:.
Its
STATE OF WASHINGTON )
County of Kitsap )
I certify that know or have satisfactory evidence that
is the person who appeared before me, and
said person acknowledged that signed this instrument, on oath, stated that
was authorized to execute the instrument and acknowledged it as the
of THE ADMIRAL THEATRE FOUNDATION to be the free and
voluntary act of such party for the uses and purposes mentioned in the instrument.
DATED: ,1996.
NOTARY PUBLIC
Printed Name:
My appointment expires:
-4-
'73
CONSENT
The City of Bremerton, Washington, in consideration of the benefits to be
conferred on it in connection with the foregoing Collateral Assignment of Operating
Agreement (the "Assignment") hereby:
1. consents to the Assignment of the Operating Agreement by Assignor to
Lender, but upon the express condition that such consent shall not be deemed a waiver
or relinquishment for the future of any covenant against assignment, nor shall the
acceptance of Lender as assignee be construed as releasing Assignor from the full
performance of the provisions of the Operating Agreement;
2. agrees that it will not terminate the Operating Agreement on account of
any default of Assignor thereunder without providing to Lender the same notice as it is
required to provide to Assignor under the Operating Agreement and providing to Lender
the same opportunity to effect a cure of any default or to declare Assignor in default
under the Loan Agreement between Assignor and Lender and to perform Assignor's
obligations under the Operating Agreement;
3. agrees that in the event Lender elects to perform or cause to be
performed Assignor's obligations under the Operating Agreement, it will not terminate
the Operating Agreement so long as the defaults of Assignor thereunder are cured by
Lender or its designee within the time provided in the Operating Agreement; and
4. agrees that in the event Lender exercises its rights under the Assignment
to take possession of and operate the premises which are the subject of the Operating
Agreement, or to acquire Assignor's interest under the Operating Agreement by
foreclosure or otherwise, and so long as all obligations of the Assignor under the
Operating Agreement are duly and timely performed, it will recognize the Lender or any
other person succeeding to the Assignor's interest under the Operating Agreement as
assignee thereunder; provided that the acceptance of Lender or any other person as
assignee under the Operating Agreement shall not be construed as releasing Assignor
from the full performance of the provisions of the Operating Agreement.
DATED this day of ,1996.
CITY OF BREMERTON, WASHINGTON
k\15727V~,DMIRAL.COL
By:
-5-
1. SUBJECT:
AGENDA BILL
BREMERTON CITY COUNCIL
RESOLUTION NO. ~ 27 '7 ':7'
AUTHORIZING AN INTERFUND LOAN FROM THE WATER
FUND TO THE WASTEWATER FUND
FOR AGENDA OF:'
ORIGINATING DEPT.: Treasu-rer
ORIGINATOR:R. a~a
DATE SUBMITTED: October
2. CLEARANCES: Comment of back if necessary)
~:'Public Wo~~J~-'~
City Attorn~/~'c'~'''~'~
Council Fiscal & Budget ~',. ,~,,
ENDORSEMENTS /- /~NFORMATIO,
MAYOR
3. EXHIBITS:
Proposed Resolution
Budget Adjustment No. 96-29
APPROVED BY C~RE~TA
COUNCIL PRESIDENT ~' ~'~
4. SUMMARY STATEMENT AND REQUIREMENT FOR COUNCIL ACTION:
By Resolution No. 2541, the City Council authorized an interfund loan from the Water Fund to the Wastewater Fund.
The size of the current loan was limited to $2 million and the term was limited to the end of the current year. It is
requested that the term of the loan be extended to December 31, 1997 and that the size of the loan be increased to $3
million.
8. RECOMMENDATION:
MOTION TO ADOPT RESOLUTION NO. -./D
MOTION TO APPROVE BUDADJUSTMENT 96-29.
9. RESPONSIBLE OFFICIAL: Public Works Dir.
ENFORCEMENT OFFICIAL: Mayor
EXPIRATION DATE: Dec. 31, 1997
REVIEW DATE: N/A
PULLED
COUNCIL DIRECTIVE:
TABLED
10. NOTICE OFACTION
APPROVED
'75'
DISAPPROVED
11. AGENDA BILL NO:
AMENDED__
8A
2. CLEARANCE COMMENTS:
5. IMPACT ON NON-PASSAGE:
Other financing arrangements will be necessary or the Wastewater Fund will operate in a deficit cash position contrary to
stab ~te.
IMPACT ON STAFFING. BUDGETS. FACILITIES. EQUIPMENT OR OTHER R_ESOUR_C_ES:
As provided in the attached budget adjustment.
7. RESEARCH SOURCES:
Cash Flow Projections.
RESOLUTION NO. ~?~/
A RESOLUTION authorizing an interfund loan to the Wastewater Operating Fund from the
Water Operating Fund.
WHEREAS, the Wastewater Fund has a short term need for operating cash pending the
receipt of monies due from several contracts, grants and long term loans; and
WHEREAS, the size and term of this transaction does not lend itself to an external
financing; and
WHEREAS, surplus cash in an amount sufficient to accommodate this short term need
is presently on hand in the Water Fund;
NOW, THEREFORE, let it be resolved that the City Treasurer is hereby authorized and
directed to make an interfund loan to the Wastewater Fund from the Water Fund in an amount
not to exceed $3,000,000. This loan shall bear interest at the rate of five percent per annum and
shall be repaid in its entirety on or before December 31, 1997.
PASSED by the City Council of the City of Bremerton this
1996.
day of
JOHN LAW, Council President
'77
Requesting Department:
CITY OF BREMERTOI
BUDGET ADJUSTMENT REQUEST
WATER AND WASTEWATER FUNDS
NO.
96-29
SOURCE OF FUNDS:
Description
WATER FUND:
Increase Beginning Cash
Decrease Expenditures
WASTEWATER FUND:
Receive Interrund Loan
Amount
700,000
2,300,000
3,000,000
USE OF FUNDS:
Descr pt on
Disburse Interfund Loan
Reduce Begining Cash
Increase Ending Cash
Amount
3,000,000
1,400,000
1,600,000
NARRATIVE:
This adjustment will provide for a short-term interfund loan to finance a cash flow deficit of the Wastewater
Fund.
Department Head Signature Date Director Signature Date
Treasurer Comments:
~mmended
Not Recommended
reasurer s Signature ~_
Mayor Comments:
Recommended
Approved
Not Recommended
Denied
Mayor's Signature
Date
Fiscal & Budget Committee Comments:
Recommended
Approved
Not Recommended
Denied
7g
Fiscal & Budget Committee Signature Date
1, S_UJ3JJF~7~T5 ORDINANCE NO.
Adopting the 1997 Budget
AGENDA BILL
BREMERTON CITY COUNCIL
FOR AGENDA OF: Dec, 4, 1996
ORIGINATING DEPT: Treasurer , ¢)'-
ORIGINATOR:~. HanNa' ~. ~,.,
DATE SUBMIT-I'ED: Nov. 19, 1§9t3
S' Comment of back if necessary)
Dir Admin Ser.
Council Comm. ~,~R~ar¢
ENDORSEMENTS /%' INFORMATION
3. EXHIBITS:
Proposed Ordinance
Mayor's Preliminary Budget
COUNCIL PRESIDENT
4. SUMMARY STATEMENT AND REQUIREMENT FOR COUNCIL ACTION:
This Ordinance adopts the City's 1997 Budget at the fund level as described in the text of the Ordinance and as
presented in the Mayor's Preliminary Budget document.
8. RECOMMENDATION:
,--Motio'rrtcA'~]:~rb~re' the O~eCng-tl:~-1997-Budget~on-first-reading:---
t.~ z¢_~ 75/
Motion to pass,tl~e Ordinance adopting the 1997 Budget on second reading.
9. RESPONSIBLE OFFiCIAL:Treasurer
ENFORCEMENT OFFICIAL: Mayor
EXPIRATION DATE: Dec. 31, 1997
REVIEW DATE: N/A
PULLED
COUNCIL DIRECTIVE:
10. NOTICE OF ACTION
TABLED APPROVED DISAPPROVED AMENDED__
7<7
11. AGENDA BILL NO:
9A
2. CLEARANCE COMMENTS:
5. IMPACT ON NON-PASSAGE:
The City will lack the authority to spend money or to employ staff after Dec. 31,1996.
6. IMPACT ON STAFFING. BUDGETS. FACILITIES. EQUIPMENT OR OTHER RESOURCES:
As presented in the several study sessions.
7, RESEARCH SOURCES:
Preliminary Budget Document.
ORDINANCE NO. ~{P- ? 9~
AN ORDINANCE of the City of Bremerton approving and adopting the financial budget
for the several funds of the City of Bremerton for the fiscal year 1997, and appropriating
the mounts set forth in each budget to each fund in accordance with RCW 35.33.075.
THE CITY OF BREMERTON DOES ORDAIN:
SECTION 1: That the financial budget for the City of Bremerton, to wit: "Official
Budget for the year 1997, City of Bremerton", now on file in the office of the City Clerk of the
City of Bremerton, be and the same is hereby approved and adopted, and the respective amounts
provided for in said budget for the several funds of the City of Bremerton, be and the same are
hereby fixed and adopted as follows:
ESTIMATED REVENUES AND EXPENDITURES FOR THE YEAR 1997
001
101
102
103
104
105
106
108
109
110
112
201
305
307
3O8
401
DESCRIPTION AMOUNT
General ..................................................... $22,274,473
Arterial Street .................................................7,480,546
Street ......................................................... 1,936,300
Contingency Reserve ........................................... 739,000
Civic Improvement/Stadium ..................................... 158,000
Parking System Revenue ........................................ 537,750
Community Development Block Grant ........................... 553,000
Abatement Revolving Fund ...................................... 415,000
Real Estate Transfer Tax ........................................784,000
Police Special Projects ............................................ 42,400
Parks Facility Construction ........................................ 88,000
General Obligation Bonds ..................................... 1,062,429
Waterfront Parks Construction .................................... 31,500
Fire Department Capital .........................................314,570
Pendergast Park Construction ................................... 114,000
Water Operating .............................................. 8,687,868
407 Municipal Golf Course ........................................ 2,558,325
451 Wastewater Operating ........................................ 16,627,326
481 Stormwater Operations .......................................... 937,673
503 Risk Management ............................................. 2,148,000
510 Equipment Rental Reserve ..................................... 2,794,500
601 Cemetery Perpetual Care ........................................ 128,500
621 Local Improvement District Guaranty ............................ 135,000
622 Roosevelt Capital Assets ........................................ 926,000
623 Gift and Donation Fund ........................................... 38,613
624 Employee Medical Insurance Reserve ............................ 425,000
GRAND TOTAL ESTIMATED REVENUES AND EXPENDITURES: $71,937,773
Of the total revenue, the sum of $4,872,194 is the estimated amount to be received from a
$3.8127 levy per $1,000 of assessed valuation of aH property within the city limits of the City of
Bremerton as set forth in Ordinance No. 4574.
SECTION 2: That the separate totals set forth in Section 1, hereo£ for each of said funds,
as particularly itemized in the "Official Budget for the year 1997, City of Bremerton on file in the
office of the City Clerk of the City of Bremerton, be and the same are hereby appropriated to each
of said departments for the fiscal year 1997.
SECTION 3: Nothing contained herein shall be construed to require the City of
Bremerton or its officers to fill any vacancy in any of the positions established by this ordinance
resulting from the discharge, resignation or retirement of such employee. Nothing herein
contained shall require the City of Bremerton or its officers to pay the maximum amount budgeted
for any position shown therein.
SECTION 4: This Ordinance shall be in full force and effect immediately following
passage and publication as provided by law.
APPROVED by the City Council on the first reading on this day of
December, 1996.
PASSED by the City Council of the City of Bremerton, signed by the Mayor and attested
by the City Clerk in authentication of such passage this day of December, 1996.
APPROVED this
JOHN LAW, Council President
day of December 1996.
LYNN HORTON, Mayor
ATTEST:
KATHLEEN L. McCLUSICEY, City Clerk
EFFECTIVE DATE:
PUBLISHED:
ORDiNANCE NO.
AGENDA BILL
BREMERTON CiTY COUNCIL
ORDINANCE NO. __
AMENDING THE 1996 BUDGET
FOR AGENDA OF: Dec. 11,1996
ORIGINATING DEPT: Treasurer
R. Hann~a ~-,.,..._
ORIGINATOR:
DATE SUBMITTED: Dec. 4, 1996
~ Comment of back if necessary)
Dir. Administrative Set.
Fiscal and Budget Comm.
3. EXHIBITS:
Proposed Ordinance
Supporting Budget Adjustment Forms
ENDORSEMENTS f ~7~ INFORMATION
YOR
APPROVED BY COUN~.C.~RESIDENT_ FQR S__..~_~TTA
COUNCIL PRESIDENT ~~'¢'~'''~'~
4, SUMMARY STATEMENT AND REQ_U~ENT FOR C_O_U_N~,I_L_ACTION:
A number of actions have been taken by the City which need to be incorporated into the Budget in order for the document
to remain an accurate projection of City financial activity.
Motion to approve the Ordinance amending the 1996 Budget on first reading.
Motion to pass Ordinance No. __
on second reading.
9. RESPONSIBLE OFFICIAL:Treasurer
ENFORCEMENT OFFICIAL: Mayor
EXPIRATION DATE: 12/31/96
REVIEW DATE: N/A
PULLED
COU Cl IR C VE:
TABLED
10. NCTCE_O~_AQTLON
APPROVED
DISAPPROVED
11. AGENDA BILL NO:
AMENDED__
9B
2. CLEARANCE COMMENTS:
5. iMPACT ON NON-PASSAGEj
:The 1996 Budget will not accurately project anticipated financial activity of the City. Several previously authorized
actions will exceed current appropriations.
6, iMPACT ON STAFFING, B~UDG TS~CiLiTIE.S_~EO. UiPMENT OR O_THER
As indicated in the attachments.
7, RESEARCH SOURCES:
1996 Budget Adjustment Requests.
ORDINANCE NO.
AN ORDINANCE amending Ordinance No. 4568
relating to the budget of the City of Bremerton for Fiscal Year 1996
THE CITY OF BREMERTON DOES ORDAIN:
SECTION 1: Section 1 of Ordinance No. 4568 is hereby amended as follows: That the financial
budget for the City of Bremerton, to wit: "Official Budget for the year 1996, City of Bremerton", now on file
in the office of the City Clerk of the City of Bremerton, be and the same is hereby approved and adopted, and
the respective amounts prodded for in said budget for the several funds of the City of Bremerton, be and the
same are hereby fixed and adopted as follows:
ESTIMATED REVENUES AND EXPENDITURES FOR THE YEAR 1996
001
101
102
103
104
I05
106
107
108
109
110
112
201
305
307
308
401
407
451
481
DESCRIPTION AMOUNT
General ..................................................... Sg-2x4347g ~
..................
Arterial Street ................................ ,Svv,
City Street .................................................... 2,080,190
Contingency Reserve ............................................ 733,500
Civic Improvement/Stadium .................................. 155,000
Parking System Revenue ........................................ 664,638
Comm. Development Block Grant ............................. 1,37~.,wv
Athletic Sports ......................................................... 0
Abatement Revolving Fund ...................................... 414,000
Real Estate Transfer Tax ........................................ 885,000
Police Special Projects ............................................ 43,199
Parks Facility Construction ........................................ 98,446
G. O. Bonds ................................................... 1,024,787
Waterfront Parks Consturction .................................... 31,300
Fire Department Capital ......................................... 314,570
Pendergast Regional Park Const ................................. 119,000
Water Operating ............................................. 1 v,~.
Municipal Golf Course ...
Wastewater Operating ........................................ 15,26°-',9°~5
Stormwater Operations ........................................ 1,258,715
24,122,371
2,531,156
1,657,941
6,500
10,740,073
4,489,012
16,868,985
503
510
601
621
622
623
624
Risk Management ............................................. 1,898,000
Equipment Rental Reserve ..................................... 2,508,649
Cemetery Perpetual Care ........................................ 123,500
Local Improvement Dist. Guaranty .............................. 116,000
Roosevelt Capital Asset ............................................,wv
Gif~ and Donations Fund .......................................... 32,400
Employee Medical Insurance Reserve ............................ 555,000
361,000
GRAND TOTAL ESTIMATED REVENUES AND EXPENDITURES:... ~,w,~~i,~e~n ~n ~a $73,832,932
Of the total revenue, the sum of $4,703,968 is the estimated amount to be received from a $3.8020
levy per $1,000 of assessed valuation of all property within the city limits of the City of Bremerton as set
forth in Ordinance No. 4532.
APPROVED by the City Council on the first reading this
day of December, 1996.
PASSED by the City Council of the City of Bremerton, signed by the Mayor and attested by the City
Clerk in authentication of such passage this day of December, 1996.
APPROVED this
JOHN E. LAW, Council President
day of December, 1996
ATTEST:
LYNN HORTON, Mayor
KATHLEEN L. McCLUSKEY, City Clerk
EFFECTIVE DATE:
PUBLISHED:
ORDINANCE NO:
lt~96 AMENDING ORDINANCE NO:
SUMMARY OF BUDGET ADJUSTMENTS
CURRENT
1996 BUDGET
001 GENERAL $22.434,813
101 ARTERIAL STREET 2,506,156
102 STREET 2.080.190
103 CAPITAL RESERVE 733,500
104 CIVIC iMPROVEMENT 155.000
105 PARKING SYSTEM REVENUE 664.638
106 C.D.B.G. 1.374,000
107ATHLETIC SPORTS 0
108 ABATEMENT REVOLVING FUND 414,000
109 REAL ESTATE TRANSFER TAX 885.000
110 POLICE SPECIAL PROJECTS 43,199
112 PARKS FACILITY CONSTRUCTION 98,446
201 GENERAL OBLIGATION BOND 1.024.787
305 WATERFRONT PARKS CONSTRUCTION 31,300
307 FiRE DEPARTMENT CAPITAL 314,570
308 PENDERGAST REGIONAL PARK CONST. 119,000
401 WATER OPERATING 10,040,073
407 GOLF COURSE 4,224,012
451 WASTEWATER OPERATING 15,268.985
481 STORMWATER OPERATING 1.258,715
503 RiSK MANAGEMENT 1.898,000
510 EQUIPMENT RENTAL RESERVE 2,508,649
601 CEMETERY PERPETUAL CARE 123.500
621 LiD GUARANTY 116,000
622 ROOSEVELT CAPITAL ASSET 356.000
623 DONATIONS FUND 32,400
624 EMPLOYEE MEDICAL INSURANCE RES, 555,000
NET
ADJUSTMENTS
$1,687,558
25.000
283,941
6.500
700.000
265,000
1,600,000
5.000
AMENDED
BUDGET
$24,122,371
2,531.156
2,080,190
733,500
155,000
664.638
1,657,941
6,500
414.000
885,000
43,199
98.446
1,024,787
31.300
314,570
119.000
10,740,073
4.489,012
16,868,985
1,258,715
1,898.000
2,508,649
123,500
116,000
361,000
32.400
555,000
TOTAL $69,259,933 $4,572,999 $73,832,932
Requesting Department:
CITY OF BREMERTON
BUDGET ADJUSTMENT REQUEST
Fund 106 Community Development
No.
SOURCE OF FUNDS:
Description
Beginning Fund Balance
HUD-Federal Direct
KC-Federal Indirect
State HOME
Loan Repayments
Amount
$ 16,988
$422,283
- $324,830
$ 5~,500
..$__.~.~30000 _
$198,941
USE OF FUNDS:
Description
Supplies and Services
Pass Thru Funds
Operating Transfers Out
$116,110
$ 52,831
$ 30,000
$198,941
NARRATIVE:
The purpose of this adjustment is to adjust budget to the astual dollars, including the
carryover, actual HOME dollars, actual CDBG entitlement, etc.
Department Head Signature ¢-Oate
Director Signature ¢/' Date
Treasurer Comments:
r-~,Recommended
~--'-~lot Recommended
Initials Date
Mayor Comments:
,~,Recommended
~-q/~cproved
~ot Recommended
[---~lDenied
Mayor's Signature
Date
Fiscal & Budget Committee Comments
~ecommended
~-'-q/~eproved
[-----~ot Recommended
[--~Denied
Fis(~al & BOdge't'COmmittee Signature
~,XHIBIT G
Date
Requesting Department:
CITY OF BREMERTON
BUDGET ADJUSTMENT REQUEST
No.
96-26 B
GENERAL FUND - COMM. DEV. and ARTERIAL STREET FUND
SOURCE OF FUNDS:
Description
General Fund:
Kitsap County CDBG
Operating Trans. In
Amount
93,358
(10,000)
Arterial Street
Federal Grant 25,000
USE OF FUNDS:
Description
Waterfront Development
Administration
Construction
Traffic Calming Devices
Amount
2,358
81,000
25,000
NARRATIVE:
This adjustment will provide for the final allocation of 1996 CDBG funds and funds carried forward from prior
years as they affect other funds of the City.
Department Head Signature
Treasurer Comments:
Date Director Signature Date
p~;~'~mmended
Mayor Comments:
Not Recommend~:~- ~
Treasurer's Sign~
~/~ Recommended
~ Approved
Not Recommended
Denied
M~ayor's Signature Date
Fiscal & Budget Committee Comments:
Recommended
Approved
Not Recommended
Denied
Fiscal & Budget Corn ittee Signature Date
Requesting Department:
CITY OF BREMERTON
BU~DGET ADJUSTMENT REQUEST
No.__96-27
GENERAL FUND, GENERAL MISC.
SOURCE OF FUNDS:
~ Amoun~t
RECEIPT OF LOAN:
Loan from Kitsap County ,750,000
REPAYMENT OF LOAN:
Loan from HUD 759,200
USE OF FUNDS:
_Description
_Amount
Payment to Ad~ r~ ~eater F~n.~ ~ ~ 7~0,0~0
Payment to Kitsap Co.
Interest and Fees
750,000
9,200
NARRATIVE:
This adjustment will provide budgetary capacity for the receipt and repayment of a loan from Kitsap County
for the renovation of the Admiral Theater.
~Department Head Signature
Treasurer Comments:
Date
Director Signature
Date
j~-~Recommended
Mayor Comments:
Not Recommended 'Treasurer's S"~natur~
Date
Recommended
Approved
Not Recommended
Denied
Fiscal & Budget Committee Comments:
Date
~ Recommended
~--~ Approved
Not Recommended
Denied
Fiscal & ~¢udget Committee Signature D
Requesting Department:
CITY OF BREMERTON
BUDGET ADJUSTMENT REQUEST
SOURCE OF FUNDS:
Description Amount
USE OF FUNDS:
Description
NARRATIVE:
~,5~, u~ t- ~ ,~o,~oo ~.~,,,I5
'~ /05, ~oo ~,.~¢ ..¢~,~
Department Head Signature
Treasurer Comments:
~ecommended
Date Director Signature Date
Recommended Initials
Mayor Comments:
~7~,Recomm ended
~r~oproved
~Not Recommended
~Denied
M~yor's Signature Date
Fiscal & Budget Committee Comments
[--~ecommended
[--"1/~¢ proved
[~Not Recommended
[~Denied
Fiscal &~E~rd~g et C om~(rn ,~e~S .g~n a(~tL r~e
Date
Requesting Department:
CITY OF BREMERTON
EIUDGET ADJUSTMENT REQUEST
WATER AND WASTEWATER FUNDS
NO.
96-29
SOURCE OF FUNDS:
WATER FUND:
Increase Beginning Cash
Decrease Expenditures
WASTEWATER FUND:
Receive Interfund Loan
_Amount
700,000
2,300,000
3,000,000
USE OF FUNDS:
_Description
Disburse lnterfund Loan
Reduce Begining Cash
ncrease Ending Cash
Amount
3,000,000
1,400,000
1,600,000
NARRATIVE:
This adjustment will provide for a short-term interfund loan to finance a cash flow deficit of the Wastewater
Fund.
Department Head Signature
Treasurer Comments:
Date
Director Signature
Date
[-~r~-om me nded
Not Recommended
Treasurer's Sign~tur'b-~ ~_ Date
Mayor Comments:
Recommended
Approved
Not Recommended
Denied
Mayor's Signature
Date
Fiscal & Budget Committee Comments:
Recommended
Approved
Not Recommended
Denied
Fiscal & Budget Committee Signature Date
Requesting Department:
CITY OF BREMERTON
BUDGET ADJUSTMENT REQUEST
WASTEWATER FUND 451
No. 96-29 B
SOURCE OF FUNDS:
Description
See attached schedule
USE OF FUNDS:
Amount ! Des~cr_iption Amount
See attached schedule
NARRATIVE:
This adjustment will reallocate expenditure authority within the Wastewater Fund budget to provide for
certain unanticipated operating expenditures as detailed in the attached schedule.
Department Head Signature
Treasurer Comments:
Date Director Signature Date
~mmended
Not Recommehded
Tre-~er'~ __ __
Mayor Comments:
Recommended
Approved
Not Recommended
Denied
Mayor's Signature
Date
Fiscal & Budget Committee Comments:
Recommended
Approved
Not Recommended
Denied
Fiscal & Budget Committee Signature Date
WASTEWATER FUND
TREATMENT pLANT / PUMP STATIONS - DEPT. 32
Sup¢ies & Services
UTILITY OPERATIONS - DEFT. 33
Supplies & Services
CAPITAL PROJECTS
WWTP/PS Odor Control
Sluice Gates
SCADA
1996 BUDGET AMENDMENT
TOIAL
(70,000) 46,750 0 (23250)
45,000 107,B12 0 232.812
o (75,000) 0 (75,000)
Ao ($90,0002 ~0 (~90,0001
DRAF~
UOMMENTS
OCTOBER 28, 1996
WASTEWATER UTILITY CAPITAL
IPROJECT TITLE I PRO ECT 1996 1996 %OF ! 1996 STATUS 1996 1997
* Budgetedasonelineitem, I ; BUDGET~ EXPENSES BUDGET I BUDGET @ 12/31/96 REMAINING BUDGET
** Budgeted as one line item, , ~/,.. ¢~ s.¢ ~¢ EX~PENSED ~ AMENDMENT COSTS
LAND & BUILDINGS
WWTP Property Acquisitioes V6400507 1,700,000 895,227 53% 420,000 c^..~ovm 1,008,800 790,000
CE- 1 Fuel Storage System V6241203 10,000 0 0% 0 c~.yovm 0 0
CW- 1 Repl ace rue{ storage tank V6245203 10,000 0 0% 0 c~.YOW 0 0
OB- 1 Under.ffound Fuel Tank System V6253203 18,000 0 0% 0 C^.R¥OVE~ 0 0
VWYTP Storm Drainage Imprvmts ClP ./^ ./^ .~^ .~^ .~. .Ew ./^ 0
WWTP Frontage Imprvmts - Design ClP "/^ "/* "/^ '/^ 0 .Ew .,^ 0
Lot B, Ciiy of Brem Shrt Rat V6394500 0 55,010 NOBUDGET q.'Tq?? 0 0
Subtotal Land & Builcings $1,738,000 $950,237 55% $420,000 $1,008~800 $790,000
CSO /SEVVI~{ CONSTRUCTION
Warren Ave Basin (3SO V4213106 0 90,782 NOBV~SET 190,000 C~ pLatED 81,483 0
CailCW Priority I Design, Priority I - Phase 1 Constr V4214106 108~000 38,932 36% 236,060 OC~.L~ED 113,000 0
~/V Kitsap Lk LID ~R0104 V4218301 0 86,659 .OBUO~ 86,700 CO~.~EO 0 0I
CSO Upgrades * V4258106 0 4,001 .o.uo~ 0 c~.~ovm (1~001'~ 20,000
CSO FmO/F 15 V5252106 25,000 3,599 14% 0 c~.~.~ 16,401 0
CSO FmO/F 7B * V5219106 0 1,987 .O.UDS~ 0 CO~PLE~E~ 13 0
Sewer Replace-McLain/31 V5255301 0 34,127 .OaU~T 34,127 CC~.~E~EO 0 0
15th & Cambrian Sewer V5311301 0 32,533 .o.u~,e,~ 33,000 COU.L~O 0 0
Sewer ext - N. Lafayette ** V6229301 1,300 0 0% 0 C~.C~L 0 0
Main - Evergreen Park ** V6208301 28,000 1,440 5% 0 CO~,L~,. 26,560 0
8"Main - Wheaton ** V6374301 26,000 559 0 0 CC*~.~"TE~ 26,881 0
Sewer ext - Garland Lane ** V6300301 11,732 11r732 100% . -- 0 CO~P~T£O 0 0
Sewel mod- SheddanRoad ** V6312301 12,000 489 4%, 0 _co~,~.,5 2,000 0
Sewer mod- CE1 Main ** V6375~1 20,000 2 348 ~ 0 cc*,,~,~ 18,678 0
Callow ~ Prior_ity II - V~21410~ 50,0~0 3,54(~ - ~'~o ~ c^..~ow~ 25,000 650,000
CaJlow Pdodty I- Phase 2 Constr V62{4706 3,8~§,000 - 0 0% (3,53~.,000' c.~.vov~ 302,000 3,534,000
Rew Meter Replacement V6247106 10,000 10,360 104% 0 co..,~D 0 0
CSO No~flcalJon Signs V6248106 10,000 0 0% 0 c...vov~ 10,000 0
CSOs Roatab~e C r - Desi.qn/Instail ClP V6249106 20,000 u - 0% (15,000 c~ow 5,000 25,000
OF- 17 Manhde R81 V6256106 30,000 0 0% (30,000 c...vovs. 0 30,000
Oyster B ay Basin Interceptors- Design CIP V6246305 23,000 440] 2% 0 CO~.~T~ 1,918 0
1996 Sar~ta~ Sewer Main Replacement ** V6280305 968 0 0% 30,000 co~.~E~ 9,314 0
Penn Ave Slope Stabilization (Move to Stormwtr) V6380300 0 8,582 ,~o~u~ 0 co.~,~ (8,582 0
1997 Sanitary Sewer Ma~n Replacement ClP .~^ ./^ N/^ N~^ ./^ .EW ./^ 220,000
8" M ain Werner Road CIP ./^ ./^ ./^ ./^ .,^ .~w ./^ 10,000
Anderson Cove Basin CSO Separ¢on CIP ./^ ./^ ./A ./^ ./A .[W ./^ 0
Subtotal CSO / Sewer Construction $4,214~000 $332~116 8% ($2,993,113) $628,663 $4~489~000
28-Oct- 96
Rlename; 96EXP
WASTEWATER UTILITY CAPITAL
PROJECT TITLE * Budgetedes onelineitem
** Budgeted ~ one line item.
PROJECT
#
WWTP / PUMP STATIONS
VCV,/TP Odor Control
WWTP Dechlorination Fadlity
CE- 1 Sluice Gates
Air Relief & PS Odor Ctrl
~Remodel- Scada
WWTP/PumD Stations - ~rovements
V4215200
V4217204
V5240207
5254203
V5287207
aP ~
Subtotal w~rrp/Pu~ Stations
EQUIPMENT
Portable em~ener ator
Miol Camera (_Sewerline Ins~
~onduit Tools
V6243207
V6264307
~3106
Conduit Tools V6383206
cl~P
cl~P
UsedVan fm Police DetL
Miscall aneous ~
Automatic Power Switch
Tde hones stemu ade
Vi bration Ana]~
~& Quantity Meters
~6360100
N/A
I i 1996 STATUS /-
1996 1996 % OF 1996
BUDGET EXPENSES BUDGET BUDGET @12/31/96 REMAINING
~¢o ~ ~¢ EXPENSED AMENDMENT COSTS
1~200~000! 2~780~971
65,O00 35,97;
40,000 303
480000 519253
150,000 59,824
190,500 100,811
232% 2~085~000
55% 0
_ Wo~
108% 66 000
-- 40% ~
53%' ~
1997
BUDGET
2125500 $3497134 165% $2031000
18,00
14 500
COMPLETED
CA~RRYOVE~R
CANCEL
267,00~ U
.C~UDED^.OVE 20,0~
0
500
50,000 100,000
50,0~ 100,000
$36750 ~
6o__o
12768
3,434
N/A
Subtotal Equipment
TOTAL CAPITAL _ .
VEHICLE§ TRANSI~ER ~i'O IERR-~=U~D
~ L Ton S-~'Tr uck Dept ~3~ N/A
~9'¢0~W StepVan (Note 3) Dept 331 N/A
Dept 32I
~ 4)(4 Pick-- up Truck_____ N/A
TOTAL EQUITY TRANSFER
$32,50
3%
88%
3,50~00
$16,801 52% $3,500
77777
NEW
NEW
NEW
NEW
NEW
-- 5 096 0
1 732 O~
8 708
4,000
N,,^ 10 000
.,A 15,000
$6 395 $37 7O8
$8,1110,0000 $4.796 288 5_9% ($538,6~
N/A
N/A
N/A
$~20~t 1,358 $5,536,708
N/A N/A N/A j N~W I N/A 10,000I
N/A N/A N/A .~w I ~/A
$0 $0 $0 $40,000 j
$0
Notes: (1) Dept 33:1 @ $2,208 Sewer/~torm crew, 1 industrial grade computer with imaging equipmt @ $6,500. (2) Compactor (pogostick), Compactor (Cate), Cut-Off Saw
(3) To be purchesed fm Electronics @ $10k; if fully reserved in B~R Fund total "cest" ~s $20,500
28-Oct- 96
Rlename: 96EXP
Requesting Department:
CITY OF BREMERTOP
BUDGET ADJUSTMENT REQUEST
WATER UTILITY
No. 96-30
SOURCE OF FUNDS:
Description
REDUCE ENDING CASH
Amount
70,000
USE OFFUNDS:
Description
INCREASE CAPITAL
Amount
70,000
NARRATIVE:
This adjustment will provide for the purchase of two variable message signs for controlling traffic at
construction sites.
Department Head Signature Date
Director Signature
Date
Treasurer Comments:
Recommended
Not Recommended
Treasurer's'Signature
Mayor Comments:
Recommended
Approved
Not Recommended
Denied
Mayor's Signature __ Dante
Fiscal & Budget Committee Comments:
Recommended
Approved
Not Recommended
Denied
iscal & Budget Committee Signatdre Date
Requesting Department:
CiTY OF BREMERTON
BUDGET ADJUSTMENT REQUEST
Police/Special Projects 110 Fund
NO.
SOURCE OF FUNDS:
Description
Ending Balance $
Amount
6,400.00
USE OF FUNDS:
Description
110 Captial Outlay - Computer Hardware
Amount
$6,400.00
NARRATIVE:
Transfer funds to facilitate purchase of computer equipment.
Date
Department Head Signature
Treasurer Comments:
Director Si~lnature
ended
Mayor Comments:
Not Recomm~ended
Treasurer's~6,i~..n~ature
~ Recommended
r'--] Approved
r-'--] Not Recommended //
~ Denied ~.
Fiscal & Budget Committee Comments:
Mayor's Signature
Date
r-~ Recommended
[~ Approved
/
~-~ Not Recommended
~-~ Denied
Fiscal & Budget Com tee
Signature Date
Requesting Department:
CITY OF BREMERTON
BUDGET ADJUSTMENT REQUEST
GOLD MT. GOLF COURSE 407
NO.
96-33
SOURCE OF FUNDS:
Desc~
INCREASE:
GREEN FEES
Amount
265,000
USEOFFUNDS:
Description
INCREASE:
GOLF PRO OPERATIONS
MAINTENANCE
TRANSF. TO PARK FAC.
TRANSF. TO PENDERGAST
ENDING CASH
Amount
50,000
100,000
17,000
49,000
49,000
NARRATIVE:
This adjustment provides for the opening of the Olympic Course at Gold Mountain in September 1996.
This opening was originally planned for April of 1997.
Department Head Signature Date
............. Date
Director Signature
Treasurer Comments:
~Recommended
Not Recommended
Mayor Comments:
Recommended
Approved
Not Recommended
Denied
Mayor s Signature
Fiscal & Budget Committee Comments:
~-~ Recommended
r-~ Approved
Not Recommended
Denied
Budget Committee Signature
Date
Requesting Department:
CITY OF BREMERTON
BUDGET ADJUSTMENT REQUEST
GENERAL MISC. 001-73
No. 96-34
SOURCE OF FUNDS:
0escdption
Retirement Set-aside
Amount
80,604
!USE OF FUNDS:
Description
Amount
Increase Personnel:
Police 54,340
Fire 11,821
Parks & Rec. 14.443
80,604
NARRATIVE:
This adjustment will distribute money set aside for anticipated employee retirements from General Misc. to
the departments in which actual costs have been incurred.
Department Head S-~ture Date
Director Signature Date
Treasurer Comments:
~mmended
Not Recommended
Treasurer's Signature % Datd
Mayor Comments:
Approved I [Denied ~ /_
Mayor's Signature Date
Fiscal & Budget Committee Comments:
Recommended
Approved
Not Recommended
Denied
Fiscal & Budget Committee Signature Date
/Ol
Requesting Department:
CITY OF BREMERTO '
BUDGET ADJUSTMENT REQUEST
Community Development
SOURCE OF FUNDS:
001.16524.2016
51010
4,000.00
USE OF FUNDS:
[~C.,LJD_t~LgJ3 Amount
001.16558.2016 4,000
54110
Printing
NARRATIVE:
There ~ not adequate funds in professional services to pay for printing Harrison brochure
(existing professional services funds are allocated/encumbered for a consultant contract).
· There is a surplus of personnel funds due to delay in hiring Permit Manager.
Department Head Signature Date
Treasurer Comments:
Director Signature
Date
Mayor Comments:
Not Recommended
Treasurer's Signature ~
Date
~ Recommended ~-~ NotRecommended
Approved ~-~ Denied
Fiscal & Budget Committee Comments:
Mayor's Signature
Date
Recommended
Approved
Not Recommended
Denied
Fiscal & Budget Committee Signature Date
/OD--
Requesting Department:
CITY OF BREMERTOI%
[IUDGET ADJUSTMENT REQUEST
COMMUNITY DEVELOP~T
No.
SOURCE OF FUNDS:
001-16524 . 2016
54300
001-16524. 2016
51010
$1,000.00
$1,000.00
USE OF FUNDS:
Capital Budget
001.16
$2,000
NARRATIVE:
Purchase P.C. to replace PC dedicated to link Community Development, Fire
and Public Works and Utilities permit system.
Department Head Signature
Treasurer Comments:
Date
Director Signature
Date
Recommended
Mayor Comments:
Not Recommended
Treasurer's Signature
~-~ Recommended
[~ Approved
[--] Not Recommended
[--~ Denied
Fiscal & Budget Committee Comments:
Mayor's Signature
Date
~ Recommended
[---] Approved
Not Recommended
Denied
Fiscal & Budget Committee Signature Date
103
Requesting Department:
CITY OF BREMERTOIV
BUDGET ADJUSTMENT REQUEST
GENERAL FUND GENERAL MISC. 001-73
No. 96-37
SOURCE OF FUNDS:
Description
Reduce Supplies & Services
Amount
2,750
USE OF FUNDS:
Description
Increase Capital
Amount
2,750
NARRATIVE:
This adjustment will provide for the purchase of a video camera from the money appropriated for the
Community Access Program.
Department Head Sign-"atuce~ Date
Director Signature
Date
Treasurer Comments:
~'"'~ecommended
Not Recommended
Treasurer's Signature ~ Date
Mayor Comments:
Recommended
Approved
Not Recommended
Denied
Signature
Date
Fiscal & Budget Committee Comments:
~-~ Recommended
~ Approved
Not Recommended
Denied
Fiscal & Budget Committee Signature Date
Requesting Department:
CITY OF BREMERTON
BUDGET ADJUSTMENT REC~U_EST
POLICE DEPARTMENT
No. 96-38
SOURCE OF FUNDS:
Description
Increase Sales Tax Revenue
Decrease Cen-Oom Expense
Amount
95,000
25,000
120,000
USE OF FUNDS:
~tion Amount
Increase Jail Expense 120,000
NARRATIVE:
This adjustment provides for greater than anticipated number of City prisoners incarcerated at the Kitsap
County jail.
Departmen'i"'Hea'd'Signature
Date
Director Signature
Date
Treasurer Comments:
~-d~mended [ i Not Recommende~-
Treasurer's~-.~
Mayor Comments:
Date
Recommended
Approved
Not Recommended
Denied
Mayor's Signature Date
Fiscal & Budget Committee Comments:
Recommended
Approved
Not Recommended
Denied
Fiscal & Budget Committee Signature Date
/o5
Requesting Department:
CITY OF BREMERTON
BUDGET ADJUSTMENT REC~UEST
ATHLETIC SPORTS FUND
No. 96-39
SOURCE OF FUNDS:
Description
increase Beginning Cash
USE OF FUNDS:
Amount Description Amount
6,500 increase Transfer Out 6,500
NARRATIVE:
This adjustment will provide for the transfer to the General Fund of the left over cash when this fund was
closed out.
Department Head Signature Date
-D i re c~}-S i~ r~ a-t~ r e ....... Date
Treasurer Comments:
~;~Recommended
Mayor Comments:
Not Recommended
Trea~~
Recommended [~-1 Not Recommended
Approved L ! Denied
Mayor's Signature
Fiscal & Budget Committee Comments:
Recommended
Approved
Not Recommended
Denied
Fiscal & Budget Committee Signature Date
Requesting Department:
CITY OF BREMERTON
BUDGET ADJUSTMENT REQUEST
ROOSEVELTTRUSTFUND
No. 96-40
SOURCE OF FUNDS:
Description
Increase Parking Revenue
Amount
5,000
USE OF FUNDS:
/Descr~iption
Ilncrease Parking Administration
Amount
5,000
NARRATIVE:
This adjustment provides for additional volume of parking at the City's waterfront lots and the associated
oosts.
Department Head Signature Date
~)q~'ector-~ig~atur~ ........ Date
Treasurer Comments:
~'~ecommended
Not Recommendededed~/ J .~
Treasu~-e?s -~i~n~r~'
Mayor Comments:
Recommended
Approved
Not Recommended
~-~ Denied
Mayor's Signature
D~te
Fiscal & Budget Committee Comments:
Recommended
Approved
Not Recommended
Denied
Fiscal & Budget Committee Signature Date
I07
Requesting Department:
CITY OF BREMERTOI
BUDGET ADJUSTMENT REQU_E_S~T
EMPLOYEE MEDICAL iNSURANCE RESERVE
No. g6-41
SOURCE OF FUNDS:
_Description
Decrease Ending Cash
Amount
25,000
USE OF FUNDS:
Description Amount
, Increase Professional Services 25,000
NARRATIVE:
This adjustment will provide for the consultant used by the City in process of reviewing and re-bidding the
contract for employee medical insurance.
Department Head Signature Date
Director Signature
Date
Treasurer Comments:
~'~ecommended
Not Recommended
Treas e
Mayor Comments:
Recommended
Approved
Not Recommended
Denied
Date
Mayor's Signature
Fiscal & Budget Committee Comments:
Recommended
Approved
Not Recommended
Denied
Fiscal & Budget Committee Signature Date
CITY OF BREMERTON
BUDGET ADJUSTMENT REQUEST_
No.
Requesting Department:
SOURCE OF FUNDS:
Description
Decrease Supplies & Services
ABATEMENT REVOLVING FUND
Amount
20,000
USE OF FUNDS:
D_escr~iption
Increase Labor
96-42
Amount
20,000
NARRATIVE:
This adjustment will provide for certain abatement projects which were carried out by City staff instead of
contractors.
Department Head Signature Date
Director Signature
Date
Treasurer Comments:
mended
Not Recommended
Mayor Comments:
~ Recommended ~ Not Recommended %~ ~/~
Approved I iDenied ~ /
Mayor's Signature Date
Fiscal & Budget Committee Comments:
Recommended F~ Not Recommended
Approved E~ Denied
Fiscal & Budget Committee Signature Date
Requesting Department:
CITY OF BREMERTO'
BUDGET ADJUSTMENT REQUEST
GENERAL FUND, TRANSPORTATION DEPT.
No. 96-4~;_~
SOURCE OF FUNDS:
Description
Decrease Ending Cash
Amount
20,000
USE OF FUNDS:
DescriptLon
Increase Professional Services
Amount
20,000
NARRATIVE:
This adjustment will provide for the greater than anticipated costs of closing out the contract
with Ryder for garage operations.
Departmbnt Head ~igz:taLure Date
Treasurer Comments:
[--~ecommended
Not Recommended ~"'~ ~ ....... _~ [/G
Treasurer's S~-~'n a t ~ ~ e~--<-7-.-~- Date
Mayor Comments:
Recommended
Approved
~ Not Recommended
~-~ Denied
Fiscal & Budget Committee Comments:
Date
Recommended
Approved
Not Recommended
Denied
Fiscal & Budget Committee Signature Date
!10
AGENDA BILL
BREMERTON CITY COUNCIL
1. Subject: FOR. AGENDA OF: 12/11/96
Wemer Road Annexation 75% Petition ORIGINATING DEPT:Executive
Public Hearing and Ordinance ORIGINATOR-: T. O2qeill
DATE SUBMITTED: 11/20/96
2. Clearances: (Co~m~ back if necessary)
City Atto~~5~-~'~-~.: A
Community Develbpment: ~.L~/~a~r'f---~
Council Committee:
ENDORSEMENT x~ INFORMATION__
3. Exhibits:
Petition/Certification
Ordinance
(Original signatures/documents on
File in the City Clerk's office)
Plnnnin~ C'nmml ~clnn/RtnFF R o,nn~tq
APPROVED BY COUNCIL
COUNCIL PRESL...-.-/~'~-
4. SUMMARY STATEMENT & REQUIREMENT FOR COUNCIL ACTION:
A legally sufficient petition, represeming 75-percent of assessed value of all real property
within a revised annexation area Wemer Road Area, has been secured. This new area represents
a portion of the area represented by the 10-percent petition. A public hearing shall be held before
City Council, in accordance with RCW 35.13.140. Any interested persons may appear and voice
either approval or disapproval for this annexation.
Following the heating the Legislative body must approve the ordinance annexing the area and
establishing land-use designations on the first reading and pass it on the second; or reject the
annexation.
8. RECOMMENDATION:
City staff recommends the City Council approve the ordinance annexing the Wemer Road
Annexation on the first reading and pass it on the second reading.
RESPONSIBLE OFFICIAL:
ENFORCEMENT OFFICIAL:
EXPIRATION DATE:
REVIEW DATE:
PULLED
TABLED
10.
APPROVED
NOTICE OF ACTION:
DISAPPROVED__ AMENDED__
IOA
2. CLEARANCE COMMENTS:
5. IMPACT ON NON-PASSAGE:
If the Council rejects the proposed annexation, the initiating parties have no right of appeal (R.C Y~
35.13.177 and178).
6. IMPACT ON STAFFING, BUDGETS, FACILITIES, EQUIPMENT OR OTHER
RESOURCES:
See Municipal Services Stqff Report.
7. RESEARCH SOURCES:
"Annexation Handbook." Municipal Research & Services Center of Washington. June 1995 (51).
"Implementation, Consistency and Concurrence: Annexation Policies." Bremerton Comprehensive
Plan (April 5, 1995.) Feb. 1996. Chapter K, Sec. 4 Urban Growth Policies, Sub-section D (10).
Excerpt from Annexation Policies:
According to city policies established for annexation, the City of Bremerton considers annexation as a means
of meeting community needs. The following objectives are the framework for measuring specific annexation
requests.
Objective A:
The city will utilize umform criteria in evaluating annexations.
· Short-and long-term community impacts on levels of service and projected revenues
and expenditures for services will be evaluated.
· Only annexations which do not diminish the current levels of service over the long-
term will be accepted.
Objective B: The city will consider annexation areas best meeting the growth goals and polices of
the city and region.
Objective C: The city will consider annexation areas which preserve established neighborhoods
and community identities.
COUNCIL DI]I. ECTIVE: DATE:
ORDINANCE NO.
AN ORDINANCE annexing an area known as the Werner Road Area and fixing the
effective date of annexation.
WHEREAS, the City of Bremerton, Washington received from property owners residing
within a 52 acre area, south of Harlow Drive, west of Ida and including lots on the south side of
Werner Road, west of Alder, a Notice of Intent to commence annexation proceedings; and
WHEREAS, the City Council approved the 10% Petition for the Werner Road
Annexation on February 28, 1996, and required the adoption of comprehensive plan and land-use
zoning designations and required the area and to assume a proportional share of existing City
indebtedness upon annexation; and
WHEREAS, there was filed with the City Council of the City of Bremerton a Petition for
the annexation of a portion of the Werner Road Area which conformed to the City Council's
requirements as described above, in writing and signed by the owners representing 75-percent of
property value, according to the assessed valuation for general taxation; and
WI-IEREAS, the Bremerton City Council conducted a public hearing on December 11,
1996, following posting and publication of the hearing, as required by law, to accept public
comments on the annexation petition and accept said; now therefore:
THE CITY OF BREMERTON DOES ORDAIN TI-IE FOLLOWDqG:
Section 1. The territory described and further depicted in Exhibit "A and B,"
respectively, and attached hereto and incorporated by reference herein shall be and constitute a
part of the City of Bremerton.
Section 2. In conformance with the terms of the Annexation Petition all property,
within the territory annexed, hereby shall be subject to all the laws of the city and ordinances
including assessment or taxes in payment of any bonds issued or debts contracted prior to or
existing at the date of annexation.
Section 3. The official zoning map of the City of Bremerton shall be amended to
include the area as denoted on Exhibit C attached hereto and incorporated by reference herein.
Section 4. This ordinance shall take effect ten days following passage and publication.
The City Clerk shall certify this annexation ordinance with the Kitsap County Commissioner's
Board following the final approval by the Kitsap County Boundary Review Board. If disapproved
the ordinance shall become null and void.
APPROVED by the City Council on the first reading this day of December, 1996.
PASSED by the City Council of Bremerton this __ day of December, 1996.
Bremerton City Council President
APPROVED this __ day of
,1996.
Lynn S. Horton, Mayor of Bremerton
ATTEST:
Kathleen McCluskey, City Clerk
Exhibit: ~
Werner Road Annexation
71.08 ACRES
22NOVEMBER 1996
G P THORNBURGH: CHECKED BY N LEVER
Beginning at the northwest comer of the El/2 SEl/4 NEll4 NEll4 of Sec. 20 T24N, R1 E,
WM; (said NW corner being on the existing City Limits Line) thence following along the
City Limits Line south to the SW corner of said El/2; thence east to the SE corner of said
E1/2; thence south along the east line of said Sec. 20 to the north margin of Werner Rd;
thence west along said north margin to the west line of the El/2 NEll4 SEl/4 NEll4 of
said Sec.20; thence south to the SW corner of the El/2 SEl/4 SEl/4 NEll4 of said Sec.
20; thence east along said south line of the NEll4 of said Sec. 20 and continuing east
along the south line of the NWl/4 of Sec. 21 T24N, R1 E, WM to the east line of the SWl/4
of the NWl/4 of said Section 21; thence leaving the City Limits line and running north
along said east line to the north margin of Wemer Rd; thence west along said north margin
to the west margin of Maple St (Ida St); thence north along said west margin to the south
margin of Rogers St; thence west along said south margin to the west margin of Broad St;
thence north along said west margin to the north line of Sec. 21, T24N, R1 E, WM; thence
west along said north line to the NW corner of said Sec 21; thence west along the north
line of said Sec. 20 a distance of 142 fi; thence southwesterly in a straight line to a point
on the west line of the El/2 NEll4 NEll4 NEll4 of said Sec. 20, said point being 411 ft
south of the North line of said Sec. 20; thence south to the point of beginning.
ALSO: That portion of Section 16, T24N, R1 E, WM described as follows;
Beginning at the SW comer of said Sec. 16; thence north along the west line of said Sec.
to a point 150 ft south of the NW corner of the SWl/4 of the SW1/4 of the SWl/4 of said
Sec. 16; thence east along a line 150 ft south of and parallel to the north Line of said
SWl/4 SW1/4 SWl/4 to the easterly margin of Tweed Lane; thence south
westerly along said easterly margin to the south line of said Sec 16; thence west to the
point of beginning.
~,,'--~---~--~:,'-c~ ' %~ ' : ~ ~.X¢~ ~ --_ i ,. ~ '- -:. ~
, ' 'b ~ ~': - : ' * ~ ~-.'--
- ~ · ~ ~ =~. : - ~ . ,
: -', ~.~ ~- ~ :,,R -
- - ~ ~ ~:_.L= ~Z~:~ ' L_ ~ Monroe St
& UTIUTIE8
PLOT ENQIHEERING DIVISION
D~WING NO. D~WN BY: SMd DESIGN BY: CHECKED BY: SHE~
WERNPRI.DWG DATE 11-18-96 DATE DATE 1 OF 1
Exhibit
City of Bremerton
COMPREHENSIVE PLAN:
Wemer Road Corridor --- IP (Industrial Park)
Areas to north of corridor --- LDR (Low Density Residential)
K~sap
La~e
$'& ,7
P
C-I
Oyster Bay
HDR
C-P
OS
MDR
West
Pal'k
PW
C-G~-
IP
: Wemer Rd.
I_DR
P
IP
Exhibit " ~
City of Bremerton
ZONING:
Werner Rd. Corridor
~ollwood Housing
All other Areas
--- IP (Industrial Park)
--- MF (Multiple-family Residential)
--- SF-3 (Single-family Residential)
SF-3!
y Limils
Certification of Petition
I, Kathleen McCluskey, City Clerk for the City of Bremerton, do hereby certify that I have
received today a petition supported by owners of not less than seventy-five percent of the value of
the property for which annexation is petitioned, according to the assessed valuation for general
taxation purposes as required in R.W. 35.13.125.
The assessed valuation of these parcels, according to the Kitsap County Tax Assessors official
record, is $7,716,230.00.
The assessed valuation of property represented by signatures is $5,808,700.00. or 75.3%.
These signatures therefore constitute at least the required 75%, which figure would be
$5,787,173.00, an excess of $21,527.00.
SIGNED P~D SEALED t~2~.' day of November, 1996.
/2
./ ' it..._r----.--~ ~.)~f .t....,: ~ -5~.--~ ~
Kathleen ~Cluskey, 9~y'~lerk
City of Bremenon
~ ~' 2%:~'",:-
Petition for Annexation to the City of Bremerton
The Honorable Mayor and City Council
City of Bremerton, Washington
The City Counctl of Bremerton, Washington is hereby petitioned by the undersigned, representing ownership
of not less than seventy-five (75) percent in value of the real property as assessed by the County of Kitsap
and lying contiguous to the City of Bremerton, to annex such temto~y and make it part of the City of
Bremerton under the provisions of Chapter 35.13 R.C.W.
The territory proposed for annexation is within Kitsap County, Washington, as is hereby described on
Exhibit "A" attached hereto, and further depicted on Exhibit "B" also attached hereto as part of the petition.
The City Council of the City of Bremerton met with the initiating parties at a City Council meeting on
February 28, 1996. At that meeting they did determine the city would accept the proposed annexation, as
disclosed by that minute enay.
At said meeting the City Council did determine that:
1) It woulc accept the annexation of the Wemer Addition area; and
2) Would require the area to assume a proportional share of existing city indebtedness as a condition
of any future petition for annexation; and
3) Require the simultaneons adoption of a comprehensive plan and zoning designations upon
annexation.
WHEREFORE, the undersigned do petition the City Council and ask:
(a) That appropriate action be taken to entertain this petition, fixing a date for a public hearing, causing
a notice to be published and posted, specifying the time and place of such hearing, and inviting all persons
interested to appear and voice approval or disapproval of such annexation; and
Co) That following such hearing, the City Council shall determine by ordinance that such annexation
shall be made, annexing the above described territory, and declaring the date whereon such annexation shall
become effective; and that property so annexed shall become a part of the City of Bremerton, Washington,
subject to its laws and ordinance then and thereafter in force.
Any and all petitioners hereto agree that all property within the territory hereby sought to be annexed shall be
assessed and taxed at the same rate and on the same basis as other property within the City of Bremerton,
including assessments or taxes in payment of any bonds issued or debts contracted prior to or existing at the
date of annekation. Petitioners further agree that City zoning will be applied to the area upon annexation, in
conformance wi: h the adopted comprehensive plan of the city.
The above' or attached text and prayer of the petition have been read by the undersigned, and consent is given
by the undersigned to the filing of other signature pages hereof to be considered as part of this petition.
I ,2..0
'q : Name/add Pa cci be Vai '
: ress rnum r uat,on
Attached Exh. #1 Kitsap Consolidated 202401 1 003 2008 $1,815,000.
Housing Authority Rec. 7905090014
Attached Exh. #2 Cascade Natural Gas 212401 2 078 2005 0
222 Fairview Ln. N; Sea.
Attached Exh. #3 Ray McCotter 212401 2 077 2006 $52,510.
5840 Wemer Rd; Brem. 212401 2 086 2005 $210,120.
Attached Exh. #4 Jerry E. Nelson 212401 2 126 2007 $125,000.
4874 NW 82nd St; Sil Rec. 8301070028
Attached Exh. #5 Daniel Lewis 212401 2 128 2005 $366,000.
5861 Werner Rd; Brem. 212401 2 129 2004 $35,000.
Rec. 8301070028
Attached Exh. #6 Bremerton Assoc. 212401 2 130 2001 $35,000.
4624 NE 89th St. 212401 2 131 2000 5227,000.
Seattle 212401 2 132 2009 $35,000.
212401 2 133 2008 35,000.
212401 2 134 2007 0.
Rec. 8301070028
Attached Exh. #7 Frederick & Diane Clayton 212401 2 127 2006 $117,000
10511 Willamette Meridian Rec. 9809260041
Attached Exh. #8 Michael& Mikeline Meures 212401 2 113 2002 $255,000.
934 52nd St SE. Auburn 212401 2 076 2007 26,000.
Rec. 8909260041
Attached Exh. #9 William Schoump 212401 2 072 2001 $2,343,000.
6581 Tracy~on Blvd NW Kec. 9502240029
Attached Exh. #10 Skirving Estate 212401 2 040 2000 $83,840.
2135 6th Street 202401 1 001 2000 48,230.
Brem. 98312
Total $5,808,700.
Exl"zibit:
Werner Road Annexation
71.08 ACRES
22NOVEMBER 1996
G P THORNBURGH: CHECKED BY N LEVER
Beginning at the northwest comer of the El/2 SEl/4 NEll4 NEll4 of Sec. 20 T24N, R1 E,
WM; (said NW corner being on the existing City Limits Line) thence following along the
City Limits Line south to the SW corner of said El/2; thence east to the SE corner of said
El/2; thence south along the east line of said Sec. 20 to the north margin of Werner Rd;
thence west along said north margin to the west line of the E1/2 NEll4 SEl/4 NEll4 of
said Sec.20; thence south to the SW corner of the E1/2 SEl/4 SEl/4 NEll4 of said Sec.
20; thence east along said south line of the NEll4 of said Sec. 20 and continuing east
along the south line of the NWl/4 of Sec. 21 T24N, R1 E, VVM to the east line of the SW1/4
of the NWl/4 of said Section 21; thence leaving the City Limits line and running north
along said east line to the north margin of Wemer Rd; thence west along said north margin
to the west margin of Maple St (Ida St); thence north along said west margin to the south
margin of Rogers St; thence west along said south margin to the west margin of Broad St;
thence north along said west margin to the north line of Sec. 21, T24N, R1 E, WM; thence
west along said north line to the NW corner of said Sec 21; thence west along the north
line of said Sec. 20 a distance of 142 ft; thence southwesterly in a straight line to a point
on the west line of the E1/2 NEll4 NE1/4 NEll4 of said Sec. 20, said point being 411 ft
south of the North line of said Sec. 20; thence south to the point of beginning.
ALSO: That portion of Section 16, T24N, RIE, WM described as follows;
Beginning at the SW corner of said Sec. 16; thence north along the west line of said Sec.
to a point 150 ft south of the NW corner of the SWl/4 of the SWl/4 of the SWI/4 of said
Sec. 16; thence east along a line 150 ft south of and parallel to the north line of said
SWl/4 SWl/4 SWI/4 to the easterly margin of Tweed Lane; thence south
westerly along said easterly margin to the south line of said Sec 16; thence west to the
point of beginning.
:Wer~e~ Rd.
SCALE
HORIZ,, 1" =800'
PLOT
40 NO,
'RLDWG
erner Road nexation
Prepped by Terrie O'Neill, Municip~ Ser~ces Coordinator
November 18, 1996
Cities use annexation to expand their boundaries and to provide land for new
development. As Bremerton faces the turning of the century, many new venues for re-
vitalize are on the horizon, but resources and services are finite. The City Council is
charged by state statute to determine what are the best future options for growth
through annexation. The following report is provided to give the City Council
necessary data for the evaluation of a request from a property owner to annex to the
City of Bremerton.
Section 1: A Review of City Policy on Annexation:
The city seeks to annex areas that will enhance the future of the City of Bremerton.
According to polices adopted for annexation by City Council, the City of Bremerton
considers annexation a means of meeting community needs. This includes both the
service and capital needs for the applicant and the needs of existing city citizens.
To evaluate the suitability of a site proposed for annexation, short- and long-term
community impacts on all residents should be studied. The area should have the
ability to provide the resources necessary to accommodate their own service and capital
needs. Only annexations which do not diminish the current level of services, over
time, should be accepted. In some cases, annexation brings about a reduction in costs
to the city. This is accomplished through the collection of taxes from an area where the
city is already providing many services, either through mutual aid or otherwise.
Section 2: Services to the Proposed Area
This annexation area has been under study since 1991. The city has extended services
into this region for more than fifteen years. Department directors were asked to
describe possible impacts of the annexation of these lands to the city. Comments were
consistent with staffs recommendation to approve the Letter of Intent to annex as
November 18, 1996
proposed. However, the following comments are noted:
Emergency Services:
Chief Michael D. McKinley-
! do not expect a high service demand from the Werner Road corridor for
either ALS or fire response. The development of the Werner corridor, for
industrial uses will be built to code and will generally have a light
occupancy load, thus a light demand for medical services. The greatest
service demand increase will be to the ALS [services as they extend] to the
Kitsap Housing Authority project "Knollwood."
Response time will be in the range of 4-5 minutes for fire, ALS and BLS
services. These are well within the standard acceptable service levels, as
recognized on the national level.
MSC notes: Calls for Fire/Aid to the entire Werner Island was 44 in 1995 according to
CenCom.
Chief Paul Du Fresne -
There are concerns about the Knollwood public housing area, inasmuch
as calls for law enforcement there, in 1995, reached 353. However, the
Mayor, Ms. O'Neill and ~ have met with the housing authority and
have preliminarily discussed future options for change at Knollwood. It
is, unfortunately, apparent that there will be a significant increase in
demand for services in the west area, at least temporarily.
Parks and Recreation:
Parks Director, Jim Spencer-
No impact to the Parks Depa, tmenL The area is served by the Pendergast
Regional Park and the SR-3 Tennis Courts.
Public Works and Utilities:
Randy Witt, City Engineer-
November 18, 1996
2
Attached (Attachment 1) are detailed comments on the condition of the
infrastructure in the annexation areas. The table needs some elaboration:
1. The "Functional Rating" relates to the amount of traffic and
the type of road. For example, a functional rating "1" represents a
principal arterial and 4 is a local access street.
2. The "OCI" (overall condition index) is the summary number
for the factors which go into the rating and ranking.
The main issues in this area are the street widths and [the fact that] they
do not have curb, gutter and sidewalks. Most of the streets are below city
standards. There are not city funds [designated] to bring them up to this
standard. It could be accomplished through Local Improvement Districts
or new development.
The storm system is limited, see comments section of the street summary.
The problems and maintenance will be typical of this type of unimproved
system. Because the city will receive funding from storm fees collected
from the annexation area, we do not foresee any extraordinary problems
in this area.
Tim Richard, City Utility Engineer- Sewer:
All property within the proposed annexation area is within the city
wastewater service area. The majority of properties within the area front
on sewer mains. These mains are relatively new and in good condition.
The sewer mains are adequately sized to handle the local sanitary sewer
flows. Properties on Broad Street and approximately 300' of Werner road
from west of Maple Street to the Bremerton Business Park do not have
mains at the front of their sites. An extension of the sewer line in Werner
is possible to serve properties in this area as they develop. Extension of
sewer to serve properties on Broad and other areas will require a major
sewer extension from 1st and Kean. This project is outlined in the Draft
November 18, 1996
3
Wastewater Comprehensive Plan.
Water:
All property within the proposed annexation is within the Water Service
Area of the city. The majority of properties in the area are on water
mains. These mains are adequately sized to provide local water
distribution. Water pressures in the southwest portion of this proposed
annexation area, west of Maple and south of Rogers are marginal to
inadequate to provide service. Development of a "West 650 water
pressure zone" is identified in the Water Comprehensive Plan to provide
adequate pressure to this area and property already within the City of
Bremerton. The proposed improvements consist of a reservoir, pump
station, and transmission main. Funding for design of these
improvements is included in the proposed 1996 budget.
MSC notes: The Broad Street area does not appear to have adequate fire hydrants to service the
potential need, according to neighbors from the area.
Department of Community Development:
Donald Pratt, Director-
The area is within the interim and proposed Urban Growth Boundary for the City of
Bremerton.
MSC Notes: Housing conditions in the Broad Street community may demand enforcement
actions. See Planning Commission report.
Section 3: Surrounding Areas
The city staff and administrators Fire District #12 agree that the community in the
Werner Road area would be have significant reductions in response time for emergency
aid. Calls for mutual aid are frequent, sewer failures are present in the Sunnyhill Road
area and development pressures persist on Werner Road, it is likely that the other areas
within the county island will eventually be annexed. Currently, the city sends
emergency services on a routine basis to this area due to mutual aid contracts.
November 18, 1996
4
ANNEXATION
WERNER RD AREA
3TREET NAME ~*>' < ~ >. ~ ~: _z STREET COMMENTS STORM DRAINAGE COMMENTS
:RANCES AVE ACP 500 4 UNK 65 513 20 FT WIDE SUBSTDiNO CURS, GUTTER or SIDEWALK NO DRAINAGE FEATURES
3OROTHY AVE ACP 310 4 UNK 82 846 20 FT WIDE SUBSTD NO CURB, GUTTER OR SIDEWALK NO DRAINAGE FEATURES
~AZEL AVE ACP 270 4 UNK 70 605 20 FT WIDE SUBSTD,NO CURS, GUTTER OR SIDEWALK NO DRAINAGE FEATURES
3RICE ROAD ACP 1,5~3 3 UNK 67 547 18 FT WiDE SUBSTD,NO CURB, GUTTER OR SIOEWALK DRAINAGE DITCH NORTH SIDE, NOTHING ON SOUTH SI[~E
IANEED LANE NM GRAY 6DC 4 UNK NA GRAVEL 15 FT WiDE
-IARLOW DR ACP 800 3 UNK 87 939 20 FT WIDE SUBSTD,NO CURB GUTTER OR SIDEWALK GOOD OR/UNAGE DITCHES ON BOTH SIDES, SOME EROSION
~ROAD ST ACP 16.50 3 UNK 57 394 14-18 FT WIDE, SUBSTD, NO C&G OR SIDEWALK DRAINAGE DICHES FAIR COND NEED TO HAVE MAINTANCE WORK
ODGERS ST UNDEV 320 NA UNK NA UNDEVELOPED
MAPLE ST ACP 620 4 UNK 42 233 20 FT WIDE SUBSTD,NO CURB. GU'STER OR SIDEWALK NO DITCHES, POOR DRAINAGE
· LOWER RANKED NUMBER MEANS THAT THE ROAD WILL NEED TO
SE REPAIRED SOONER THEN OTHER CITY STREETS THE HIGHEST
OR BEST STREET IS RANKEO 1379 ACCORDING TO THE CITY'S
PAVEMENT MANAGEMENT SYSTEM
Page 1
City of Bremerton
COMPREHENSIVE PLAN
LDR = Low Density Residential
IP = Industrial Park
City of Bremerton
DEFAULT ZONING
SF-2 = Low Density Residential
IP = Industrial Park
SF-2i
SF-2 ~
FIND G8 OF FACT
CONCLUSIONS OF LARr
of the BREMERTON PLANNING COMMISSION
Werner Road Annexation Area
PRE-ANNEXATION PLAN & ZONING
File No: PAZ-02-96
Prepared by: Ron W. Hough, Planning Manager --- Department of Community Development --- March 8, 1996
On November 8, 1995, the Bremerton City Council considered a 10% Petition and
directed staff to proceed toward annexation of approximately 137 acres, known as the
Werner Road Annexation Area. The area is a portion of an unincorporated "island" that
is totally surrounded by the City of Bremerton.
Prior to the final annexation decision by the City Council and Boundary Review' Board,
the City's process calls for Planning Commission review and recommendation for the
most appropriate Comprehensive Plan designation and City zoning, both of which would
take effect upon annexation.
FINDINGS OF FACT
1. APPLICANT:
2. LOCATION:
Owners of properties within the Annexation Area have submitted
Letters of Intent to Annex their properties into the City, or have
entered into agreements with the City whereby they would receive
City utility services xvhile remaining in the County until such time
as annexation is most appropriate.
West Bremerton sector: The annexation area includes lands along
both sides of Werner Road and extending to the north, westward of
Ida Street and Broad Street, to Harlow Drive. (map attached)
DESCRIPTION:
(a) Size: Approximately 137 acres.
1
131
(b)
(c)
(d)
Lots: Approximately 75 lots of various shapes and sizes.
Development:
Most of the land within the proposed annexation area is vacant or
underdeveloped, based on current Kitsap County zoning. The Wemer
Road corridor (both sides) is zoned for industrial development and some
new development has occurred recently. However, most of the area
remains vacant or in low-density residential use, as does the portion of the
annexation area that extends northward to Harlow Drive. The only
exception is the Consolidated Housing Anthority's Knollwood housing
development, which is a low-density multi-unit apartment complex.
Access:
Werner Road provides direct access from the freeway (SR-3), through the
unincorporated area and back into the City at its upper west end.
Harlow Drive, south of Price Road, provides access to the Annexation
Area from the Auto Center area to the east and the Kitsap Lake area to the
west. Ida Street, Broad Street and Tweed Lane serve the interior.
(c)
(d)
Topography:
The Annexation area consists mostly of rolling terrain with relatively flat
areas as well as areas of steeper slopes, drainages, and seasonal streams.
Utilities:
Sewer: The entire area is surrounded by the City of Bremerton and
within the City's sewer service area. Future growth and development, as
proposed in the City's Comprehensive Plan, can be adequately served.
Water: The area is within the City's water serv'ice area, much of the area
is currently served, and planned future growth can be adequately served
with City water.
Police: The area is currently within the jurisdiction of Kitsap County and
served by the County Sheriff's office. Upon annexation the Bremerton
Police Department will have primary responsibility for law enforcement.
The City's Police Department has a higher ratio of officers to population
and has the ability to serve the area adequately.
2
Fire:. The Annexation Area is presently served by a rural fire district.
Upon annexation, it will be served by the Bremerton Fire Department,
which has the equipment and the full time professional fire and medical
personnel needed to serve the area adequately. The nearest City fire
station is located at the southwest comer of Arsenal and Kitsap Way.
COMPREHENSIVE PLANS:
(a) Kits~
Kitsap County's most recent Comprehensive Plan was adopted in December
1994. It included the subject area in the Urban Growth Area and designated the
lands along the Wemer Corridor "Light Industrial" and lands to the north
"Urban Low Residential (1-9 DU/acre)".
The County's Comprehensive Plan was appealed and found to be invalid by the
Central Puget Sound Growth Management Hearings Board in October 1995. The
County later adopted interim Urban Growth Areas to cover those areas that were
most urban in nature and areas that were otherwise committed to future urban
development. Again, this unincorporated island was included in the UGA.
(b) City of Bremerton:
Bremerton's 1986 Comprehensive Plan was revised and adopted in April 1995.
Prior to the new amendments, the City's Plan included unincorporated areas
surrounding the City. Because this particular island was surrounded by the City,
the Plan designated the area in a manner that was most consistent with the
County's Plan and zoning. The Wemer Road corridor is shown on the City's Plan
as "Industrial Park" and the residential areas to the northwest are designated
"Low Density Residential (3-8 DU/acre)". Thus, the City and County Plans
appear to be directly consistent with each other.
ZONING:
(a) Kitsap County_:
The current "interim" zoning of the Wemer Road corridor is "Light Industrial
(IL)". The residential area to the northwest is currently zoned "Urban
Residential (UR-6)", which allows new development to a density of six
dwellings per acre. These designations correspond directly with the Light
Industrial and Urban Low Residential designations on the Comprehensive Plan.
3
(b) City_ of Bremerton:
City zoning does not extend beyond the City limits and will be applied upon
annexation. Whatever zoning is applied must be consistent with the
Comprehensive Plan designation that is also applied. Since the current Plan
designation is "LDR" (Low Density Residential), the City is limited to one of
four residential zones that fit into the LDR density range. The following four
residential zones are "low density." zones and any one could be applied:
SF-1 (Single-family residential)
va SF-2 (Single-family residential)
SF-3 (Single-family residential)
DR (Duplex Residential)
3DU/acre base density
4DU/acre
9 DU/acre
9 DU/acre
(c) Analysis of Residential Zonim, Options:
The SF-1 zone requires very large lots (1/3 acre), which results in a very low
density and extreme limitations on an owner's ability to divide a parcel into
smaller buildable lots. This is not considered an ideal "urban" zone in terms of
efficient and cost-effective provision of streets, urban utilities, and services
because the lo~v density spreads the cost burden over a wide area with few o~vners
to share the costs. Because of that, the SF-1 zone is usually applied only where
access is difficult and where utilities (particularly sewer) are severely deficient or
non-existent and not planned for many years. Application of the SF-1 zone
would be a "down-zone" from the present County zoning and is not otherwise
appropriate for this Annexation Area.
The SF-2 zone also requires large lots of nearly a quarter-acre in size, which will
also result in low densities, limitations on land divisions, and inefficient sharing
of future costs related to streets, utilities and services. This zone is applied
primarily along shorelines where steep slopes, bank stability, and views are
primary considerations, or where utilities and services are not expected to be
available at a level that can accommodate higher density grov~h. Application of
the SF-2 zone would also be a "down-zone" and was not found to be appropriate
for the Annexation Area.
The SF-3 zone is Bremerton's most efficient and desirable low-density zone. It is
designed to accommodate typical single-family home subdivisions, with moderate
sized lots (4,800 sq.ft, minimum), and at a density that is consistent with the
needs, lifestyles and typical characteristics of today's modem neighborhoods.
This zone allows a slightly higher density than currently allowed under County
zoning, offers greater flexibility in the division and development of land, and is
4
recommended for application within most of this Annexation Area.
The DR (duplex) zone is essentially the same and alloxvs the same density as the
SF-3 zone. The only difference is that it allows duplex structures in addition to
single-family homes. This zone is applied most often to existing duplex
neighborhoods and is not recommended for the Wemer Road Annexation Area.
The Housing Authority's Knollwood development, being a multi-unit apartment
complex, doesn't fit any of the City's low-density zones. However, it's density,
does fall into the Low Density Residential Comprehensive Plan designation, in
recognition of this situation and to prevent this development from becoming
burdened by a "nonconforming use" status, it was recommended that the City's
"Multi-family Residential (MF)" zone be applied to the Knollwood
development.
(d) Analysis of Non-residential Zoning Options:
The Wemer Road corridor has been planned and zoned by Kitsap County as a
future industrial corridor. The City's Comprehensive Plan reflects the same
vision and is directly consistent with the County Plan and Zoning. There is one
zone that is directly consistent with Bremerton's "Industrial Park" Plan
designation and that is the "Industrial Park (IP)" zone, which has been
recommended by staff.
PROCEDURES FOR APPROVAL
This annexation is being processed in accordance with the 75% Petition Method as
outlined in RCW 35.13.125. The final annexation proposal and 75% petition will be
considered by the City Council for approval by ordinance.
2. The annexation area was reviewed by City staff; who made both Comprehensive Plan and
Zoning recommendations.
The Bremerton Planning Commission conducted a public hearing on March 19, 1996,
accepted public comments on the staff proposals, deliberated, and formulated its Plan and
Zoning recommendations to the City Council. The Commission considered only the
Plan and Zoning issues and did not consider or discuss the merits of the annexation itsel£
In most situations, the City's Comprehensive Plan can be amended only once each year.
However, there are exemptions for emergencies and for annexations. This allows the
5
1.35
Plan Amendment that is needed to complete this annexation to be approved as pan of the
annexation package without a delay in the annexation process.
Environmental Review (SEPA) is not required for annexations, but is required when
Comprehensive Plans and Zoning Maps are amended. The required SEPA Checklist was
completed for these amendments and a Determination of Nonsignificance (DNS) was
issued by the City's SEPA Official on March 7, 1996.
CONCLUSIONS & RECOMMENDATIONS
1. CONCLUSIONS:
(a)
The planning history of this unincorporated island is clear. The adopted County
Plan (December 1994) and the later Interim Zoning Map were consistent in
showing the Werner Road corridor as industrial and the remainder of the area to
the north in low-density residential designations.
(b)
The Bremerton Comprehensive Plan is directly consistent with the County's Plan
and Zoning for this area and, although Kitsap County is now considering other
planning alternatives, there is no basis for proposing a major change to the
Bremerton Comprehensive Plan at this time.
(c)
The City of Bremerton surrounds the unincorporated island and the entire island
lies within the City's water and sewer service areas. Those services are now
available, or can be made available, to serve the proposed levels of development.
(d)
Access to and from the area via Werner Road is direct and short. Good freexvay
access will enhance the area's ability to grow as a business center, consistent with
the proposed zoning. Access to residential areas via Werner and Harlow/Price is
also adequate, although some local roads will require future improvements as new
growth occurs and traffic increases.
RECOMMENDATIONS
The Bremerton Planning Commission hereby recommends that the following
Comprehensive Plan designations and Zones, as shown in attached Exhibits "A" and "B"
respectively, be applied to the Werner Road Annexation Area upon annexation:
6
Comprehensive Plan:
The Comprehensive Plan designations should remain as shown on the West
Bremerton Land Use Plan.
Zonine:
1. The Werner Road Corridor should be zoned "Industrial Park (IP)".
2. The Consolidated Housing Authority's Knollwood housing development should
be zoned "Multiple-family Residential (MF)'; and
3. All other areas should be zoned "Single-family Residential (SF-3)'.
Recommended by the Bremerton Plarming Commission on March 19, 1996.
Donald L. Pratt, DCD Director
Planning Commission Secretary
Wayne Olsen, Chair
Bremerton Planning Commission
7
/37
EXHIBITS
from
Planning Commission
Public Hearing
March 19, 1996
Exhibit 1:
Exhibit 2:
Exhibit 3:
Exhibit 4:
Exhibit 5:
Exhibit 6:
Exhibit 7:
Exhibit 8:
Exhibit 9:
Bremerton Comprehensive Plan Map
(overhead projection transparency)
Vicinity and Zoning Map --- City zoning surrounding unincorporated island.
(overhead projection transparency)
Werner Road Annexation Area -- Proposed Zoning
(overhead projection transparency)
Werner Road Annexation Area -- County Alternative Plan
(overhead projection transparency)
Letter: Peter and Paula Moore, 5605 Wemer Rd. (3/18/96)
Letter: Bud and Walter Leaver, 708 N. Twin View Place
Letter: Mayor Horton, City of Bremerton
Letter: Mr. & Mrs. Cokelet (3/15/96)
Letter: Margaretmary & Robert Kirkland, 738 Eden Rd. (3/19/96)
10
AGENDA BILL
BREMERTON CITY COUNCIL
1. SUBJECT: Public Hearing regarding SR3/SR304
Bremerton Ferny Terminal to Gorst Transportation
Projects Re-evaluation of SR304 Access between the
Charleston District and Downtown
FOR AGENDA OF:
ORIGINATING DEPT:
ORIGINATOR:
DATE SUBMITTED:
December l 1, 1996
Public Works & Utilities
R. W~tt C~ty Engine ,
December 4, 1996
2. CLEARANCES: (comment on back if necessmy) 3. EXHIBITS
~:5Og'Director, Public Works/Utilities ,~-~--~cv~3~ ~
m O SEM_ ,rr Or V ZlOS APPROVtD BY CO CIL
MAYOR<:~ ~d. 3~,/,. COUNCIL PRES1DE~.--'~
4. SUMMARY STATEMENT AND REQUIREMENT FOR COUNCIL ACTION:
At the City Council meeting of November 26, t996, a resolution was passed establishing December 11, 1996 as a
Public Heating regarding the re-evaluation of SR304 alternative selected in August 1995 between the Charleston
District and Downtown as part of subject project. At the September Study Session, the City Council was advised that
a community outreach would be initiated to determine if there was a consensus that the issue should be revisited. A
committee was selected by the Mayor and has had seven committee meetings as well as two public involvement
meetings to gain knowledge of the issue and develop a consensus. At the City Council study session of November 20,
1996, the City Coundl was presented and discussed the committee recommendation, which is to modil~ the previous
"do-nothing" alternative on Burwell Street to provide a three lane street, with two lanes toward downtown and one
lane out of downtown. TNs agenda item establishes a public hearing before the City Council to consider modification
of the preferred alternative for the Burwell Street portion of the SR3/SR304 Bremerton Ferry Terminal to Gorst
Vicinity Transportation Improvement Project for inclusion in the Environmental Impact Statement.
8. RECOMMENDATION:
That the City Council have a a public hearing on the re-evaluation of SR304 access between the Charleston District
and Downtown as part of the SR3/SR304 Bremerton Ferry Terminal to Gorst Vicinity Transportation Improvement
Project. Ifa modification to the preferred alternative is selected, direct staffto prepare a resolution memorializing the
~: ?" 9. RESPONSIBLE OFFICIAL: City Engineer
ENFORCEMENT OFFICIAL: N/A
EXPIRATION DATE: N/A
REV1EW DATE: N/A
PULLED TABLED
COUNCIL DIRECTIVE
10. NOTICE OF ACTION
APPROVED DISAPPROVED
AMENDED
DATE:
11. AGENDABILL NO: 76- 2
lOB
2. CLEARANCE COMMENTS:
IMPACT ON NON-PASSAGE:
The preferred alternative to "do-nothing" on Burwell Street will stay in effect.
6. IMPACT ON STAFFING, BUDGETS, FACILITIES, EQUIPMENT OR OTHER RESOURCES:
N/A
7. RESEARCH SOURCES
/,-/o