HomeMy WebLinkAbout10/20/2010 AGENDA r - - -- -�
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CITY COUNCIL 345 6� Street, Suite 600, Bremerton, WA 98337 o Phone (360) 473-5280
OCTOBER 20, 2010
CITY COUNCIL MEETING AGENDA
1. BRIEFING: 5:00 — 5:30 P.M. in COUNCIL CONFERENCE ROOM 603
....�
A. General Council Business
2. CALL TO ORDER: 5:30 P.M. in FIRST FLOOR CHAMBERS
A. Pledge of Allegiance
B. Invocation
3. MAYOR'S REPORT
4. PUBLIC RECOGNITION
5. CONSENT AGENDA
A. Claims & Check Register
B. Minutes of Meeting — October 6, 2010
C. Minutes of Study Session — October 13, 2010
D. Contract Award to PiTtvEY BowES for Lease of Connect+2000 Mailing System
E. Resolution No. 3123 between the City of Bremerton and South Kitsap Fire & Rescue to
create a Regional Fire Authority Planning Committee pursuant to RCW 52.26
F. Ordinance No. 5123, amending Bremerton Municipal Code (BMC) Chapter 17.60.070
relating to "Floodplain Management"
G. Resolution No. 3124, providing for certain terms and covenants relating to Limited Tax
General Obligation (LTGO) Bonds to provide funds with which to pay for portion of
Constructing the Park Avenue Plaza Project — Updated information will be provided
during the Briefing on October 20, 2010...
6. GENERAL BUSINESS
A. Agreement with Our Lady Star of the Sea School for Non-Exclusive weekday use of
Kiwanis Park
B. Ordinance No. 5124, providing for the Issuance and Sale of Unlimited Tax General
Obligation (UTGO) Bonds to advance refund a portion of the City's outstanding UTGO
Bonds, 2002 and establishing the Terms and Covenants af the Bonds — Updated
information will be provided during the Briefing on October 20, 2010...
7. COUNCIL MEMBER REPORTS
8. ADJOURNMENT OF CITY COUNCIL BUSINESS MEETING �
� Americans with Disabilities Act (ADA) accommodations provided upon request Those requiring special accommodations
should contact the City Clerk's O�ce at (360) 473-5323 by noon on the Monday preceding the Council meeting.
BREMERTON CITY COUNCIL
MEETING SPEAKERS LIST
PLEASE PRINT YOUR NAME BELOW
IF YOU WISIT YOUR COMMENTS TO BE
INCLUDED IN THE RECORD
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REQUESTS FOR INFORMATION MUST BE SUBMITTED IN WRITING TO THE CLERK
THANK YOU
DATE SUBMITTED: 10/20/2010
AGENDA BILL
CITY OF BREMERTON
CITY COUNCIL
. .......................................................................................
SUBJECT: Committee Meeting Date:
COUNCIL MEETING Date: October 20, 2010
Claims & Check Register Department: Financial Services
Presenter: Cathy Johnson
Phone: 473-5296
SUlViMARY:
Consent Agenda item. Approval of checks and electronic fund transfers.
ATTACffiV�NTS: Check Register.
FISCAL IMPACTS (Tnclude Budgeted Amount):
A.PPROVALS:
DEPARTMENT DIRECTOR:
CITY ATTORNEY:
FINANCE DIRECTOR:
MAYOR:
COMMITTEE CHAIR
COUNCIL PRESIDENT: ' CONSENT AGENDA �
GENERAL BUSINESS ❑
PUBLIC HEARING ❑
RECOMMENDED MOTION:
1) Check #'s 339988 through 340209 and EFTs 10283 through 10323 in the amount of
$2,352,631.50.
2) Regular Payroll for the pay period ending October 15, 2010 in the amount of $702,723.08.
COUNCIL AC°ITON: � Approve ❑ Deny ❑ Table ❑ Continue ❑ No Action
I�:1 I I: til ; f�\�11'I"I�I�L):
.aGCNDA BILI_
( 1Tl' OF BREi��tERTOti
CITY COUNC'li.
.......................................................................................�
5liI3JF.CT: C'ity C�i�ncil Meetin� Minuies Cummitte� Mcetin� Date: ':V/.A
tot' mcclin� uf l'OU\�C'IL Vll�l:'t'IN(; Datr _ ��.�-,� b�,,,-. �p 20 ( O
0 G b�' (� , 2o t c� De�� Cll'i111C111: C liy C OU11C1 I
Presentc► Nick Wofford,
Council President
Phone: (360) 473-5280
SUMMARY: Attaclied is the summary of the City Council Meeting held Dc.--�v bQ,r (o � 2� �v
ATTACHMENTS: Meeting Minutes for Q �- �� 2 0 l Z�
FISCAL IMPACTS (Include Budgeted Amount): N/A
APPROVALS:
DEPARTMENT DIRECTOR: Council President
CfTY ATTORNEY: N/A
FINANCE DIRECTOR: N/A
MAYOR: N/A
COMMITTEE CHAIR N/A
C'OUNCIL PRESIDENT: CONSENT AGENDA �'
GENERAL BUSINESS ❑
PUBLIC HEARING ❑
RECOn�IMENDED �ti10TION:
�-1u��e ro ap�rove meeti��3 i��i»utes as presentecl.
t'Ol�\'(7L ;�CTION: ❑ Approve ❑ Deny ❑ "I�ablc ❑ ('untinuc ❑ No Action
DIGITAL RECORDING
CITY COUNCIL MEETING MINUTES
Wednesday, October 6, 2010
The weekly meeting of the City Council of the City of Bremerton was called to order Wednesday,
October 6, 2010, at 5:00 PM in Council Conference Room 603 of the NoRM DicKS GovERNnnErvT
CENTER 345 6 Street, Bremerton, Washington, with Council Vice-President Will Maupin presiding.
Council Members present were Carol Arends, Dianne Robinson, Greg Wheeler, Adam Brockus, Cecil
McConnell and Jim McDonald. Council President Nick Wofford and Council Member Roy Runyon
were absent. Also present were City Attorney Roger Lubovich; City Clerk Carol Etgen; and
Legislative Assistant Lori Smith.
A Cou►vc�� BRiEFiNG was then held to discuss General Council Business at 5:00 PM in the Council
Conference Room. At 5:30 PM the meeting moved to the Meeting Chambers.
The Pledge of Allegiance was led by Council Member Jim McDonald followed by the invocation
provided by Council Member Dianne Robinson.
MAYOR'S REPORT Mayor Patty Lent...
• Presented a Mayor's Appreciation Award to Matthew McBride for his outstanding service in
helping a citizen in need;
• Presented a Mayor's Appreciation Award to City Employee Jeannie Vauahn for her initiative in
earning a degree that will assist her in her position in the City's Community Development
Department;
• Presented Mayor Appreciation Awards to Alanna Nixon and Paris Harrison for their community
service and fundraising efforts towards the Kids Kove therapeutic playground project that they
also helped to construct on Sunday, September 26 at Madrona Day Treatment School, a Kitsap
Mental Health program for children;
• Proclaimed October 3-9, 2010 as "Mental lllness Awareness Week", and presented a
proclamation to representatives of the National Alliance on Mental Illness (NAMI) including John
Freeburq, President of NAMI in Kitsap County; Mvra Clodius; and Suzanne Griffin;
• Announced a"Beautify Bremerton Day" would be held on Saturday, October 30 with dumpsters to
be donated by Waste Management and placed in various locations around the City, with specific
locations soon to be announced;
• Invited the public to attend the Bremerton Central Lions Club 23� Annual Seafood Dinner and
Auction on Saturday, October 23 at 5:30 PM at the Admiral Theater;
• Announced the PUMA's will now have a fall and winter league, with tryouts to be held at
Bremerton Memorial Stadium this Saturday on October 9 from 11:00 AM to 2:00 PM;
� City staff will be hosting a SKIA Public Workshop will be held in the Chambers next Wednesday,
October 13 from 4:00 to 7:00 PM;
� Congratulated local Bremerton Figure Skating Club members Shannon Shopshire and Alec
Schmitt for winning the Regional Competition, which qualifies them for the Junior Nationals.
• The 10 Anniversary Celebration of the Washington CASH Program will be held tomorrow night at
the Kitsap Golf & Country Club;
PUBLIC RECOGNITION & ANNOUNCEMENTS
Susan Daniel, Volunteer from the Kitsap Historical Society Museum, discussed the successful "Span
the Bridge" exhibit and celebration; and discussed the work being done to improve the outside of their
building. She also discussed an unfortunate parking situation that she personally experienced
recently, and urged the Council to consider eliminating parking charges on Sundays to encourage
visitors to downtown.
Joseph Victor Paul II expressed his concerns about an increase in crimes in particular areas of the
City; but thanked Chief Rogers for increasing patrols.
City Council Reg. Mtg. Minutes
Wednesday, October 6, 2010
Page 2 of 4
Bob Dollar was hoping to urge voters to support the Kitsap Regional Library levy that is on the
November 2 ballot but it was explained by Vice President Maupin that per the Council's Rules &
Procedures, discussion of ballot issues is prohibited after the issue has qualified for the ballot.
Douq Mclntvre, employed by both the County and City CDBG Program, reminded citizens that the
30-day public comment period for the Draft 2011-2015 Consolidated Plan has been opened since
September 10 and will close this Sunday on October 10. On Monday, staff will consider all submitted
comments in preparation of adopting the plan at a Public Hearing that is scheduled on November 3.
The Plan is still available for viewing on both the County and City's website; and comments can also
be submitted by calling (360) 473-5211.
Marie Vila, CDBG Program Administrator, also reminded citizens that the 30-day public comment
period for the 2011 CDBG/HOME funding recommendations for low income and non-profit agencies
opened on October 1 and will close on Monday, November 1. Ms. Vila encouraged citizens to learn
more by viewing the details of the funding recommendations found on the City's website; and that
adoption of the funding recommendations will be considered at a Public Hearing that is also
scheduled on November 3.
CONSENT AGENDA
A. Check Numbers 339671 through 339987; and EFT-10211 through EFT-10282 in the amount of
$3,442,774.34; Regular Payroll for the pay period ending September 15, 2010 in the amount of
$723,030.48; Retiree Payroll for the pay period ending September 30, 2010 in the amount of
$79,078.99; Regular Payroll for the pay period ending September 30, 2010 in the amount of
$714,210.56; Retiree Payroll for the pay period ending September 30, 2010 in the amount of
$177.52; Retiree Payroll for the pay period ending September 30, 2010 in the amount of —
(177.52); Retiree Payroll for the pay period ending September 30, 2010 in the amount of —
(665.68); and Retiree Payroll for the pay period ending October 1, 2010 in the amount of $177.52.
B. Minutes of Meeting — September 15, 2010
C. Minutes of Special Meeting & Study Session — September 22, 2010
D. Minutes of Study Session & Joint Discussion with Bremerton Fire Department and South Kitsap
Fire & Rescue (SKFR) — September 29, 2010
E. Resolution No. 3122 authorizing a Sole Source Contract; and Goods and Services Agreement
with APSCO, Irvc of Kirkland, WA for the Purchase of a WEMCO Grit Classifier for the Westside
Wastewater Treatment Plant
F. Commercial Broadcast Facility Lease Agreement with SEaTr�E STREaMirvG RA�io LLC for the
Forest Ridge KBRO Tower Site
There were no questions or comments from the public...
06:04:35 M/S/C/U (Arends/Brockus) Move to approve the CoNSENT A�Etv�a as presented and �
amended.
GENERAL BUSINESS
6A — APPROVAL TO APPLY FOR AN ECONOMIC DEVELOPMENT DISTRICT (EDD) PUBLIC
WORKS PRIORITIZATION PROCESS GRANT: Vincent Akhimie, Public Works & Utilities Director,
summarized that the Puget Sound Regional Council (PSRC) recently announced the Economic
Development District (EDD) Public Works Prioritization Process Grants, and that the City would like to
apply for one of the grants to construct a Downtown Streetscape Promenade and Retail Connector to
be constructed from downtown to Evergreen Rotary Park. Bill Webb from PaRannETRix, INC. provided
further details of the project during a Power was also available to provide information.
There were no comments from the public...
City Council Reg. Mtg. Minutes
Wednesday, October 6, 2010
Page 3 of 4
06:23:45 Motion was made by Robinson, and seconded by Wheeler; Comments were then provided
by the Council...
06:31:03 M/S/C/U (Robinson/Wheeler) Move to approve the Public Works & Utilities Department to
apply for an Economic Development District (EDD) Public Works Prioritization Process Grant.
COUNCIL MEMBER REPORTS
Jim McDonald attended a PSE Regional Planning Meeting where discussion focused on the
production of electric cars, and was pleased to announce that grants may soon be available for
charging stations.
Adam Brockus reminded the public about the Thursday closures of the Manette Bridge for the full
month of October; reported on the District 3 Neighborhood Meeting held last night; and announced
that he would host another District 3 Neighborhood Meeting on Tuesday, October 26, from 6:30 to
8:00 PM to talk about "Design of Traffic Flow on East 11` Street in Manette" and also provide an
opportunity to meet candidates running for local offices.
Greq Wheeler attended many events in the last few weeks including the memorial for Brad
Johanson, former Captain of the USS John C. Stennis; and the Legacy Project and Book Launch
event for Civil Rights Pioneer Lillian Walker.
Dianne Robinson also was proud to attend the event in honor of Lillian Walker; asked if anyone had
a building they would like to use for a green project by the OC Green Program; and announced that
Chet Atkins has opened a new soul food restaurant in the location of the former Ponderay Cafe &
Lounge on Callow Avenue.
Carol Arends was pleased to see a new restaurant open on Callow Avenue; and enjoyed the
Collective Visions event held as part of the First Friday Art Walk activities last week.
Will Maupin enjoyed his attendance at the Bremerton Party fundraising event with his wife Karen;
and also very much enjoyed attending the celebration event for his good friend Lillian Walker.
8A — EXECUTIVE SESSION
06:47:00 Vice-President Maupin recessed the meeting for a 20-minute Executive Session to
discuss "Potential Litigation"per RCW 42.30.110 (1) (i).
07:07:00 Citv Clerk Carol Etqen announced that the Executive Session would be extended 15-
minutes. ..
07:23:00 Citv Clerk Carol Etqen announced that the Executive Session would be extended 15-
minutes.. .
07:38:00 Citv Clerk Caro/ Etqen announced that the Executive Session would be extended 5-
minutes...No action was taken.
With no further business, Vice-President Maupin adjourned the Council Meeting at 7:43 PM.
Prepared and Submitted by:
. ,
LORI SMITH
� Legislative Assistant
City Council Reg. Mtg. Minutes
Wednesday, October 6, 2010
Page 4 of 4
Attest:
CAROL ETGEN, City Clerk
WILL MAUPIN, City Council Vice-President
WM:CE:Is:cg .
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.acF�iu.a t�i�.�.
C1T1' OF BREMCRTON
C'1TY C OUNC'il..
.......................................................................................�
SI.�BJi?CT: Cit�� C'ouncil Meetinti Minutes Cl)I11111111C1; �7ecti�a� Date: 'V;.1
lur �i�cctin� oI� C'c)l_?N(:'1L :�11�L"1�1N(� Dat�: pL� (� �,p �.,ot O
�C�,02� 1'�y � Zt� �� DcpartmcnL• C'ity Coimcil �
Presente�° Nick Wofford,
Cuuncil President
Phone: (3G0) �73-5280
SUn9MARY: Attached is the summary of the City Council Meeting held OL. ('3 i �-o ( O
ATTACHMENTS: Meeting Minutes for D �,-}� b�' i 3 � a. 01 O
FISCAL IMPACTS (Include Budgeted Amount): N/A
APPROVALS:
DEPARTMENT DIRECTOR: Council President
CTTY ATTORNEY: N/A
FINANCE DIRECTOR: N/A
MAYOR: N/A
COMMITTEE CHAIR N/A
C`OUNC'1L PRESIDENT: CONSENT AGENDA �
GENERAL BUSINESS ❑
PUBLIC HEARING ❑
RCCONIMENDF,D MOTION:
1-1ovc to a��prove mceting minutes as presentec�.
('OI;VCIL :�('TION: ❑ Approve ❑ Deny ❑ "fable ❑ C'unt�nu� ❑ No Action
DIGITAL RECORDING
CITY COUNCIL STUDY SESSION MINUTES
October 13, 2010
A Study Session of the City Council of the City of Bremerton was called to order in the City
Council Conference Room 603, of the NoRM DICKS GOVERNMENT CENTER 345 6 Street
Bremerton, Washington, Wednesday, October 13, 2010, at 5:00 PM, with Council Vice-
President Will Maupin presiding. Council Members present were Carol Arends, Dianne
Robinson, Greg Wheeler, Roy Runyon, Adam Brockus, Cecil McConnell, and Jim McDonald.
Council President Nick Wofford was absent. Legislative Assistant Lori Smith was present to
provide staff support. �
Vice-President Maupin announced that the Study Session was open to the public, however
there would be no opportunities for input or participation; that no action will be taken, and the
content of these items is subject to change.
A. NON-DISCUSSION ITEMS
1. Contract Award to P�TtvEY BowES for Lease of Connect+2000 Mailing System — Cathy
Johnson, Interim Financial Services Director; and Adam Brockus, Finance Committee
Chair Consenf Agenda on October 20, 2010
2. Proposed resolution between the City of Bremerton and South Kitsap Fire & Rescue to
create a Regional Fire Authority Planning Committee pursuant to RCW 52.26 — Fire
Chief AI Duke; and Roy Runyon, Public Safety and Parks Committee Chair Consent
Agenda on October 20, 2010
B. FULL DISCUSSION ITEMS
3. Agreement with Our Lady Star of the Sea School for Non-Exclusive weekday use of
Kiwanis Park — Wyn Birkenthal, Parks & Recreation Director; and Roy Runyon, Public
Safety and Parks Committee Chair General Business on October 20, 2010
4. Proposed ordinance amending Bremerton Municipal Code (BMC) Chapter 17.60.070
relating to "Floodplain Management" — Michael Mecham, City Engineer; and Dianne
Robinson, Public Works Committee Chair Consent Agenda on October 20, 2010
5. Proposed ordinance providing for the Issuance and Sale of Unlimited Tax General
Obligation (UTGO) Bonds to advance refund a portion of the City's outstanding UTGO
Bonds, 2002 and establishing the Terms and Covenants of the Bonds — Cathy Johnson,
Interim Financial Services Director; and Adam Brockus, Finance Committee Chair
Genera/ Business on October 20, 2010
6. Proposed resolution providing for certain terms and covenants relating to Limited Tax
General Obligation (LTGO) Bonds to provide funds with which to pay for portion of
Constructing the Park Avenue Plaza Project — Cathy Johnson, Interim Financial
Senrices Director; and Adam Brockus, Finance Committee Chair Consent Agenda on
Ocfober 20, 2010
7. Proposed ordinance amending Title 7 and Chapter 3.01.050, Rate Table D of the
Bremerton Municipal Code (BMC) legalizing the keeping of chickens within the
Bremerton City Limits — Roy Runyon, Public Safety and Parks Committee Chair Study
Session on October 27, 2010; General Business on November 3, 2010
C. GENERAL COUNCIL BUSINESS
Council Committee Chairs provided briefings on their Committees, and general information
was shared. .
City Council Study Session Minutes
Wednesday, October 13, 2010
Page2of2
With no further business, Vice-President Maupin adjourned the Study Session at 8:00 PM.
Prepared and Submitted by:
� �
LORI SMITH
Legislative Assistant
Attest:
- CAROL ETGEN, City Clerk
WILL MAUPIN, City Council Vice-President
WM:CE:Is:cg
�AT�E susM��r�r�:u: �o�osr_o�o
AGENDA B[LL
CITY OF BREMERTON
CITY COUNCIL
.......................................................................................�
SUBJECT: Cantract Award to Pitney Committee Meeting Date: October 13, 2010
Bowes for a Cannect+2000 Mailing System COUNCIL MEETING Date: Octabec ?0, 2U 10
Department: Finance
Presenter: Cathy Johnsor�
Phone: 473-5296
SUMMARY: The City's current lease with Pitney Bowes for a DM800I digitai automatic mail
machine is approaching the end of its term. Based on the current volume of 79,000 mail pieces per
year Connect+?000 model was chosen as the,appropriate replacement.
ATTACHMENTS: Pitney Bowes Global Financial Services State & Local Term Rental A�,�reement
FISCAL IMPACTS (Include Budgeted Amount): State contract pricing for the new machine is
$54b/mo or $32,760.00 over the 60 month contract term. This is a 16°ro reductiun from cuYrent
pricing. Funds are budgeted in General Fund non-departmental.
APPROVALS:
DEPARTMENT DIRECTOR:
CITY AZ"tORNEY: --
FP�IANCE DIRECTOR:
MAYOR:
COMMITTEE CHAIR � �
COUNCIL PRESIDENT: � CONSENT AGENDA �
� GENERAL BUSINESS ❑
PUBLIC HEARING ❑
RECOMMENDED MOT[ON: Move to authorize the Mayor to approve the contract with Pitney
Bowes in substantialiy the same fo�n as presented.
COUNCIL AC'TION: ❑ Appro��e ❑ Deny ❑ Table ❑ Ct»itinue ❑�to .Actioil
PITPIEY BOWES GLOBAL FIIdAPICIAL SERV6CES
STATE & LOCAL TERM RENTAL AGREEMENT � i � � � � � �
Agreement Number
Y our Busireess Ir�formation ------- --.: .. . _r _.� _ -_ .._.,._ �, __, ._.�. - --:•--.,-_ ..,- _-..-.w _ .-. . _ .. .r._..,__. ___,�.
_ -- - - - - �j / --�� !-:Z.3 �
Fuil legal Nartw of Lessee - DBA Name oi Lessee Tau ID # IFEIWTIN)
�,6Tt, ST STE fi.^� BRFMERTON WA _ 9R��7-1858
�
8(iling Address: Street Cdy SG?te 7Jp+4
18716624863
&Ning Gontad Name Bitling Contr�d Phone # &IUng CAN #
345 6TH ST STE 60� BREMERTON WA 9833?-1858 __
Installadon Rdtlress �If drftereM from bdling eddressy� Sheet Gry Sfate 7�p+d
1a��ss2asss
InstellaLOn Corttacl Name InstailaLon Cantect Phone # Installffiion CAN #
Crea�t CarcJ # Name on card Exp date Type of card
Tax exsmpt # State tax (rf appticabte} Fiscal penotl (irom - to)
YoUrBUSinessPOeedS ��----------- --------------�=--_---.---•—__— __ _-- ---------T-- . _--_:_-_�=-:-_--------_.-�:-�-�-:-<r: �,r�,-�-:=�-_.vH.�,
Gwck Mema to Ee inepded in eusEOmer's paymant
Qty Business Solution Description �, � A �,
Mail Stream Solution -1 ner � - Fro�.reo5 rer+�r�am8�uuo� �or� ror��mam("sr�de,d si.a�
� ConneCt+ 2800 Series nar z•�s sr�nd�a su a� r.�n;�e ena o�mneea �,re�meM
� Connect+ Series Meter X Tfer 3- ProviQes Tiar 2 pus GuarenteeA 4 Hour Response Time
� 130/70 LPM Feature X co,m�,+ry nm,eme�
1 15 Ib Interfaced Weighi�
� 100 Dept ACCOUnti11g ❑�re ���� (addNond fo�ms apply) - Roatles rehsron upCetes 6 tecRnkel ess�sfance
�
� Color Graphics Printing � �.,,�$„��,,,.�,,,,�sP,�,B„d�g„e,,,va�reS
� Conned+ 2000 Color Prirrter 11 you Oo nol cfaose SotFGuartf� poledion MN your leese, you w�l automalke�ry receive
�Pae�es e� Pers w,rem rs�es
� Stendard A ps Center � y���j g�pK��y Mahr Ra�Mal - ProvWes s1mpGRed blFnp and Mdudes postega resets
� Connect+ Power Stadcer �_► 'hu�° �°° $°"�S
� CoM'irmation Services Training (DM800/900/1000 � � �"R"°�PO�°'�q°"nu�
� Connect+ VBS Training � "°"""'�a °°�"'s"�`° - "u°"� b "°"�amr� °e""r °�� "�x" mere'B°
posfage w�0arone e000uM As a pennrt mad user, we neeC USPS (orms 8001, 8002, an0
Additional Items on following page 8003, abrg wrt� the Pe�mo Emoqrtient form, to eclfvate your Pemmt Mail Peymenl service
YourPayment Plan ��_.�.__ _x--.�.��.�w-.�_-�.==.------=�-=----_-- -- -- -----�-��_�—=- _.�----�,_r_ _r_ ----� _�.� __�_:._.�-
Number of months Monthly amount Billed Quarterly at•
() Required advance check oi 3( ) received
First 60 $546 $1,638 () Tax exempt certiFicate attsched
•Does not u�cWda any appllcebk ta�aes; payment ple� begin after any eppKcable Inte�im Usape Peirod.
Your Signature - - -
You agree to be bowd by all the terms and cond'Aions of this Term Rental P�qreemet�t (herein referted to as the "Agreement'�, including those cortained on
page 2 and those located in tl►e Pifney Bowes Terms, which are evailabie at www.ob.comlterms (Version 09/10) and are incorporeted by reference. The
Agreement wip be bi�ding on PBGFS ony after PBGFS has completed its credk and documentatlon approval prxess and an authorized PBGFS employee
signs below.
Signature Date
Pn�i Nartre Title Email Address
„j�unlaa Patrarsnn t191
Axount Rep District O(fice PBGFS Accepmnce
PITNEY BOWES GLOBAL FINANCIAL SERVICES i' i 1 � i �'�
STATE 8 LOCAL TERM RENTAL AGREEMENT
Agreement Number
Your Business Mfortr�ation . .-�:,.-,--_�____. _P__.._. _:__. _____..,r,._,__...... T,._-� _-__.-__, _- ..�- --____.__ . .- -- � ----� -._,_.�
� nc o�F��FRT(lW ^�'*� C'1 FRK
Full Legal Name M Lessee DBA Name of Lsssee T� �D #(FEIN/TIN}
�F RT41 CT CTC Rl1A BREMF�$TON WA fl83'�7
Bdhng AOtlress: Sheet City State Zip+4
167t6624863
BNling Contact Name Biiling Contact Pha�e it BiNmg CAN #
�a5 FTH ST STE 600 BREMERTON WA 98337-1858
InstallaUon Adaress (tl difterent from tiHing eddress)� Street City State Z�p+4
18716624863
InstaNa�on Contact Name Installatlon Contact Phone # Imt&daLOn CAN #
Credt Cerd # Name on cerd E� date Type af card
Tax exempf # Shate tex (d applicaGe) Fiscel penod (irom - to)
Your Business Needs - -
� Connect+ VBS Welcome Kit
� 151b Scale Platform/Stand
� IntelliLink Subscription with Value Based Services
� INVIEW MMS Setup Fee
� INVIEW Web Accounting
� INVIEW - Singie Meter
� INVIEW Re oRin
� INVIEW Subscri tion
� INVIEW Training
Form 803$—GC Information Return for Small Tax-Exempt
Goveroment Bond Issues, �eases, and Instaliment Sales pMB NO. 1545
(Rev. May 2009) � Under Intemal Revenue Code section 149(e)
Depertment oi thc Treasury
Intemal Revenue Service Caution: H the issue pr�e oithe issue 5100,000 or more, use Fam 803&G
• Re �, n�eno ' Check.box if Amended
1. Issuer's name 2. Issuer's employer identlHcation �umber
CITY OF BREMERTQN CITY CLERK
3. Wumber and street (w P.O. Box 'rf mail is not delivered to shaet address) Room/Sufte
345 6TH ST STE 600
4. City, town, or post office, staoe, and ZIP code 5. Report number (For !RS Use OnlyJ
_RRFMFRTC1NilVA 9R337_1R5R
6. Name and title of office or legal representative whom the IRS may call for mwe information 7. Telephone number of officet orlegaf representstive
� cri on of Obli attons Check if re ortin : a sin fe issue 0 or a consolidated return �
8a. Issue price of obligation(s) (see instructions) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 8a
b. Issue date (single issue) or calendar year (consolidated) Enter date in mm/ddlyyyy format
(for example, 01/01/2009) (see instructions) � / /
9. Amount of the reported obligation(s) on line 8a that is:
a.fo�leasesforVehides ............................................................... 9a
b. For leases for office equipmer� . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 9b
c.Forleasesforrealproperty ......................................................... ... 9c
d. For leases for other (see instructions) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . sd
e Forbankloansforvehides .......................................:..................... 9e
f. For bank loans for office equipmertt . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 9t
g.Forbankloansforrealproperty .........................................................
h. For Bank loans for other (see Instrudions) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .. . . . . . sh
I. Usedtorefund priorissue(s) ........................................................... 9i
j. Representing a loan ftom the proceeds of another tax-exempt obligation (for example, bond bank) ..... 9'
k.Other ............................................................................. 9k
10. If the issuer has designated any issue under section 265(b)(3)(B)(i)(III), (smal! issuer exceptions) , check this box . . . . . . . . . . . . . . � �
11. If the issuer has elected to pay a penalty in lieu of arbitrage rebate, check this box (see instructions) . . . . . . . . . . . . . . . . . . . . . . . . � �
12. Vendor's or bank's name . . . . . . . . . . . . . . . . . . . PITNEY BOWES INC . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
13. Vendor's or bank's emptoyer identfication number: . . . . .06-0495050 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Under penalties of pery'ury, I deGare ttiat I have e�mined this retum and accompanying schedules and statements, and to the best of my knowledge and
betiM, Uiey are true, corcee; and eomplete.
Sign , �
lier�
Issuer's authorized representaHve Date Type or print name and dtle
Preparer's Date Gheck'rf � Preparer's SSN or PTIN
P2id signature Self-employed
Preparer's
Use Only Firtn's name (or EIN
yours if selt-empoyed), �
address end ZIP code Phone no. ( )
General Instructions an election was made to pay a penalty in lieu of Prx. 2002-48, 2002-2 C.B. 531, if k is determined that
arbitrage rebate (see the tine 11 instructions). the failure to file on time is not due to wflNul neglect.
Secdon references are to the Internal Re�renue Code Flling a consofldated return for muRtple issuea. Type or print at the top oi the form, "Requested for
unless otherwise noted. For all ta�exempt governmental obligations with issue Relief under Section 3 of Rev. Proc. 2002-48.' Attaeh
Purpose of Form Prices of less than $100.000 that are not reported on a to the Form 803&GC a letter briefly statlng why the
Form 8038-GC is used by issuers of tax-exempt separate Fortn 8038-GC, an issuer must fde a form is not submitted to tl�e IRS on time. Also indicate
government obligations to provide the IRS with the ��solidated iMortoation reWm induding all such whether lhe obllgation in question is under
iMormation required by section 149(e) erM to monitor issues issued within the calendar year. examination by the IRS. Do not submk eopies of any
the requirements of sectlons 141 through 150. Thus, an issuer may file a separate Form 8038-GC bond dxumenis, leases, or installment sale
for each of a number ot smalt issues and report the dxuments. See Where To File below.
Who Must File remainder of smafl issues issued during the calendar yyhere To File
Issuets of fax exempt govemmental obtigations with year on one consolidated Fortn 8038-GC. However a
issue prlces of less than $100.000 must file Fortn separate Form 8038-GC must be filed to give the IRS File Form 803&GC, and any attachments, with the
8038-GC. notice of the election to pay a penalty in lieu of Department of fhe Treasury, Intemal Revenue Service
Issuers of tax exempt govemmental obligatlon arbitrage rebate. Center, OBden, UT 84201.
with an issue price of 5100,000 or more must file When To File � Other Forms That May Be Required
Form 8038-G, Informadon Return for Tax-Exempt For rebating arbitrage (or paying a penalty in lieu of
Govemmental Obligations. To f�e a separate retum for aN ingle issue, file Fortn arbitrage rebate) to the Federal Government, use
Filing e separate retum for a single issue. Issuers 8038-GC ot� w before the 15 day of the second Form 8038-T, Arbitrage Rebate, Yield Reduction and
ealendar month after the close of the ealendar quarter
have the option to file a separate Form 8038-GC for Penalty in lieu of Arbihage Rebate. For pmate
any tax-exempt governmental odigation wNh an in which the issue is issued, aefivity bonds, use Fwm 6038, Information Return for
issue rice ot less then $100,�00. To file a consdidated retum for multiple issues, file
p �, Tax Exempt P�ivate Activity 8ond Issues.
An issuer of a tax exem t bond used to finance Fortn 803&GC on or before February 15 of the
p calerWar year following the year in which the issue is Form 8038-GC Recelpt
construction e�enditures must flle a separate Form ;SS��a. Acknowledgement
803&GC for each issue to give notice to the IRS that �ate 6ting. An issuer may be granted an extension of If you wish to request an acknowledgement receipt of
time to file Form 803&GC under Seetion 3 of Rev. this return by the IR S you must provide the following:
n.,s •�., o.wnnn r__�. anee n� i�.... e �nnn�
?ERM RENTAL TERMS AND CONDITiONS
This la a berm reMal agreemeMwith PiMey Bowes Gbbal Financial Servkes lLC (PBGFS�, PMney Bowes' financing compa�ryl. PBGFS provides floancing optlons to
our customers. PBGFS does not warraM, service w otherwise support the equipme�M. Those servkes are provided by Pih�ey Bowes inc. (P81) as stated in the Pitney
Bowes Tertns. Due to federal regulatlons, only PBI can own an IMeiliUnk Control Center w Meter. Therefore, those Mema are rerrted to you, ratlrer ffian leased or sold.
L7. �EFINITIONS L9. RISK OF LOS3
L1.1 All capitalized terms that are not defined in this document are L9.1 You bear the entire risk of loss to the Equipment from the date of
defined in the "Definitions" sedion of the Pitney Bowes Tertns. shipmeM by PB1 uMil Me end of the Term (including any
L2. AGREEMENT extensions), reyaMless of cause, ordinary wear and tear
L2.1 You wiil make each Quarterty Payment by the due date shown on ext;epted ("tass ).
ou� invoice. L9.2 No Loss will relieve you of any of your obiigations under this
L2.2 You may not cance! this Agreement for any resson except as Rgt�eement. You must immediately notrfy us �n writing of the
expressly set foKh in SecHon L10 below. All payment oocurtenoe of any Loss.
obltgations are uncondidonal. L9.3 You will keep the Equipmerrt insured against Loss for itss fuii
L2.3 Our remedies for your failure to pay on time or other defaults are replacement value under a comprehensive policy of insurance or
set forih in the "Defautt and Remedies° se�tion of the Pitney other arrangement with an insurer of your choice, provided that it
Bowes Terms. is reasona6ly satisfadory to us ("Insurance'�. YOU MUST CALL
L2.4 You authorize us to file a Un'rfortn Commeraal Code financing US AT 1-800-243-950fi AND PROVIDE US WITH EVIDENCE OF
statement naming you as debtodlessee with respect to the INSURANCE.
Equipment. L70. NON-APPROPRIATION
L3. PAYMEN`t' TERMS APID OBUGATIONS L10.1 You warrarrt that you have funds availabie to pay all payments
L3.1 We wiN invoice you in advance each quarter for all paymenis on until the end of your current fiscal period, and shall use your best
the Order (each, a°Quartedy PaymeM"), except as provided in efforts to obtain funds to pay all paymenis in each subsequent
any SOW attached to this Agreement. fiscaf period through the end of the Tertn. If your appropriation
L3.2 Your Quarteriy Payment may indude a one-time originadon fee, request to you� legislative body, or funding authority ("Governing
amounts carried over from a previous unexpired lease, and other Body") for funds to pay the payments is denred, you may
c�sts. tertninate this Agreement on the last day of the fiscal period for
L3.3 H you request, your IntelliLink Control CenteNiu�eter Rental fees, whiCh funds have been appropriated, upon (i) submission of
Service Level Agreement fees, and Soft-Guard pa nts ("PBI documentatlon reasonably satisfactary to us evidencing the
s
PaymeMs'� will be induded with your QuarteMy ayment and Goveming Body's deniai of an appropriation sufficient to continue
begin with the start of the Tertn. Your Quarterly Payment will this AgreemeM for the next succeeding fiscal period, and (ii)
increase 'rf your PBI Paymerris increase. satisiaction of all charges and obligations under this Agreement
L3.4 Your obligations, induding your obflgation to pay the Quarterly incurred through the end of the fiscal period for which funds have
Payments due in any fiscal year during the term of this been appmpriated, induding the retum of the Equipment at your
Agreement, shall constitute a current expense for such fiscalyear expense.
and shalt not constitute indebtedness within the meaning of the 111. REPRESENTATIONS
consUtution and laws of the state in which you are located. 111.1 You hereby rePresent and warrant that (a) you are a state or
Nothing herein shall constitute a pledge by you of any taxes or political subdivision thereof within the mearnng of Sedion 103(c)
other moneys (other than moneys lawtully appropriated from time of the Intemal Revenue Code of 1986, as amended (the "Code'�;
to Ume by or for your benefit for this AgreemeM) to the payment of and (b) you have the power and authority under a�plicable law to
any Total Payment due under this Agreement. enter mto this Agreement and you have been du y authorized to
L4. EQUIPMENT OYVNERSHIP execute and deliver this Agreement and carry out your obligations
L4.1 PBI owns any Intellilink Controi Cerrter or Meter. Tiqe to the hereunder. You adcnowledge that a portion of each Quarteriy
Equipment shall pass to you upon installatlon. However, you and Payment you shali pay inGudes interest and that this Agreement
we agree that title shall automadcally revert to us in the event of is errtered into based on the assumptio� that the interest portion
detautt, or terminatlon due to your non,appropriatlon under of each Quarterly Paymerri is not inGudible m gross income of the
Section 10. owner thereof for Federal income tax purposes under Sedion
L5. TERM 103(a) of the Code. You shall, at all times, do and pertorm all
L5.1 This Agreement shall commence on the date of delivery and shali acts and things necessary and within your control in order to
conHnue until the eariier of (i) termination at our option upon the assure that such interest camponent shall De so exGuded. If any
ocxurrence of an eveni of defautt, or i( i) the occurrence of an iMerest is determined not to be exciudible from gross income,
event of a non-appropriadon under Section 10, or (iii) the your QuarteAy Payment shall be ad�usted in an amount suffiaent
expiraUon of the Tertn and your payment of all Quarterly to maintain our ong�nal after tax yield utilizing our consolidated
PaXments and other sums due and your fulfillment of all other marginal tax rate, which adjusted Quarterly Payments you agree
obl�gations under this Agreement. to pay as provided in this Agreement, subjed to Sedion L10. The
L6. SURRENDER OF ECUIPMENT rate at which the irrterest portion of Quarterly Payments is
LB.i If you defauft, or tertninate this Agreement by non-appropriation calculated is not irrtended to exceed the maximum rate or amount
under Sedion 10, you, at your expense, shali retum all Equipment of irrterest pertnitted by applicable law. if such interest portion
by delivering it to us in the same condition as when delivered to exoeeds such maximum, then at our option, 'rf permitted by law,
you, reasonable wear and tear excepted, to such place or on the interest portion will be reduced to the Iegaity permitted
board such carrier, padced for shipping, as we may specity. Until maximum amount of interest, and any excess will be used to
the EquipmeM is retumed as required above, ali tertns of this reduce the principal amount of your obligation or be refunded to
Agreement remain in effect inGuding, without limitation, your you. You shall not da (or cause to be done) any act whicfi will
obi'�gatlons to make payments relating to your continued use of cause, or by omission of arry act allow, this Agreement to be an
the Equipment arnl to insure the Equipment. "arbitrage bond" within the meaning of Section 148(a) of the Code
L7. WARRANTY AND UMITATION OF LIABILITY or a"private activity bond" within the meaning of Section 141(a) of
L7.1 WE PBGFS) MAKE NO WARRANTIES, EXPRESS OR the Code. At the time of your execution of this Agreement, you
IMPLI�D, INCLUDING ANY WARRANTY OF shall provide us with a properly prepared and executed copy of
MERCHANTABIL(TY, FITNESS FOR A PARTICULAR the appropriate US Treasury Form 8038-G or 8038-GC and you
PURPOSE, OR FREEDOM FROM INTERFERENCE OR appoint us as your agent for the purpose of maiMaining a
INfRiNGEMEN'f. re$istration system as required bY SecUon 149(a) of the Code.
L7.2 PBI provides you with (and we assign to you our rights in) ihe This Section shall survive the termmation of this Agreement.
iimited warraMy in the Pitney Bowes Terms. L12. MISCELLANEOUS
L7.3 WE ARE NOT LIABLE FOR ANY LOSS, DAMAGE (INCLUDING L12.1 If more than one customer is named in this Agreement, liability
INCIDENTAL, CONSEQUENTIAL OR PUNITIVE DAMAGES), is 'oint and several.
OR EXPEN5E CAUSED DIRECTLY OR INDIRECTLY BY THE L12.2 Y�U AAAY NOT ASSIGN OR SUBLET THE EQUIPMENT OR
EQUIPMENT. THIS AGREEMEM WITHOUT OUR PRIOR WRITTEN
L8. EQUIPMENT OBUGATIONS CONSENT.
L8.1 Condi i n and Re airs. You wil! keep the EquipmeM free from L92.3 We may sell, assign, or transfer all or arry part of this
hens an ena�m rances and in good repair, condition, and Agreement or the Equipment. Any sale, assignment, or
working order. Vansfer will not afFed your rights or obligations under this
�8.2 in��ection• We may inspect the Equipment and any related Agr�eement.
mamtenance records.
L8.3 L ca i n. You may not move the Equipment from the location
spe d on the Order without our prior written consent.
{C0150037.1} SLG ITOP tease Agreement (Rev. 9H0) Page 2 of 2
See Pkney Bowes Tertns for additlonal terms and conditions
DATE SUBMITTED: 10-06-10
AGENDA BILL
CITY OF BREMERTON
CITY COUNCIL
.......................................................................................�
No. 3 i 2 3
SUBJECT: A Resolution between the City Committee Meeting Date: 10-13-10
of Bremerton and South Kitsap Fire & COUNCIL MEETING Date: 10-20-10
Rescue to Create a Regional Fire Authority Department: Fire
Planning Committee pursuant to �CW 52.26. Presenter: Al Duke, Fire Chief
Phone: 473-5381
SUMMARY: The Revised Code of Was�ington 52.26 allows local jurisdictions to �orm Regional
Fire Authorities. This Resolution would allow three appointed elected officials from the Bremerton
City Council to be members of a Regional Fire Authority Planning Committee to formulate a plan
under RCW 52.26.
ATTACHMENTS: Resolution # 3 l2 ?j
FISCAL IMPACTS (Include Budgeted Amount): None at this time.
APPROVALS:
DEPARTMENT DIRECTOR:
CITY ATTORNEY:
FINANCE DIRECTOR:
MAYOR:
COMMITTEE CHAIR � C� �� �-- �
COUNCIL PRESIDENT: ' CONSENT AGENDA �
GENERAL BUSINESS ❑
PUBLIC HEARING ❑
RECOMMENDED MOTION: To approve Resolution # 3 � 2 3 that creates a Regional Fire
Authority Planning Committee under RCW 52.26 between the City of Bremerton and South Kitsap
Fire & Rescue.
COUNCIL ACTION: n Approve n Deny n Table (� Continue n No Action
RESOLUTION "'3 ;I� 23
A JOINT RESOLUTION between the City of Bremerton
and South Kitsap Fire and Rescue to Create a Regional Fire
Authority Planning Committee pursuant to RCW 52.26.
The parties entering into this joint resolution through their respective governing
bodies aze the City of Bremerton, a municipal corporarion of the State of Washington, hereafter
called the "CITY", and South Kitsap Fire and Rescue, a separate municipal corporation,
hereafter called the "DISTRICT".
WHEREAS, the CITY and the DISTRICT have shazed fire protection and
emergency medical responses through various contractual agreements for many years; and
WHEREAS, the parties wish to continue this cooperative and e�'icient use of their
combined resources, and
WHEREA5, the CITY and the DISTRICT have completed a six month fact
finding study that concludes formation of a regional fire authority planning committee to create
a work plan should occur; and
WHEREAS, the goveming bodies of the City and District and the respective Fire
Chiefs, have determined it is in the best interests of the parties to establish a Regional Fire
Authority Planning Committee,
NOW THERFORE, IT IS JOINTLY RESOLVED BY THE CITY AND THE
DISTRICT, THROUGH THEIR RESPECTNE GOVERNING BODIES, AS FOLLOWS:
SECTION 1. Authoritv. The parties hereby enter into this resolution pursuant to
the authority vested in them under applicable Washington law, including, but not limited to
RCW 35A 11.040, RCW 39.34, RCW 52.12.030 and RCW 52.26;
SECTION Z. Purnose. The purpose of this resolution is to form a Regional Fire
Authority Planning Committee as authorized under RCW 52.26.030;
SECTION 3. Planning Committee. The governing body of the CITY and the
DISTRICT shall appoint three elected officials to the Regional Fire Authority Planning
Committee ("Planning Committee") as described in RCW 52.26.030;
SECTION 4. Duration. The Planning Committee may dissolve itself at any time
by a majority vote of its total membership. The CITY or DISTRICT may withdraw from the
Planning Committee upon thirty calendaz days advance written notice to the other jurisdiction
per RCW 52.26.030;
�
Resolution 2010- — RFA P[anning Committee
i 1
i
I
I
SECTION 5. Entitv Status. This resolution shall not create a corporation,
partnership, limited liability company, or any other sepazate legal or administrative entity, but
rather shall serve only to establish a Joint Planning Committee pursuant to RCW 52.26.030.
SECTIQN 6. Execution in Counternarts /Effectiveness. This resolution may
be simultaneously executed in several counterparts, each of which shall be an original and all of
which shall constitute but one and the same instrument. This resolution shall become effective
when the CITY and the DISTRICT have entered into it.
SECTION 7. Severabilitv. If any one or more sections, subsections, or
sentences of this Resolution aze held to be unconstitutional or invalid, such decision shall not
affect the validity of the remaining portion of this Resolution and the same shall remain in full
force and effect.
PASSED by the City Council of the City of Bremerton, Washington this
day of , 2010.
1VICK WOFFORD, Council President
APPROVED AS TO FORM: ATTEST:
ROGER A. LUBOVICH, City Attorney City Clerk
Resolution 2010- — RFA Planning Committee
2
This resolution was considered and adopted by the District at its regularly scheduled
Board of Commissioners' meeting held on the day of , 2010.
SOUTH KITSAP FIRE AND RESCUE
By:
GERALD PREUSS, Board Chair Date
By:
DARLA HARTLEY, Board Vice-Chair Date
By:
DUSTY WILEY, Commissioner Date
By:
DAVID GELSLEICHTER, Commissioner Date
By:
PAUL GOLNIK, Commissioner Date
By:
WAYNE SENTER, Fire Chief Date
Attested to:
By:
RICHARD GROSS, Boazd Secretary Date
R:�I.egal\Legal�Resolutions�Fire�Itesolution re Regional Fire'Authority(Final).doc
Resolution 2010- — RFA Planning Committee
3
DATE SUBMITTED: October 6,2010
AGENDA BILL
CITY OF BREMERTON
CITY COUNCIL
.......................................................................................�
SUBJECT: Ordinance No. ��.. Cammittee Meeting Date: October 13,2410
amending BMC Chapter 17.60.070 relating to CO�JNCIL MEETING Date: October 20,2010
Floodplain Management. Department: Public Works and
Utilities
Presenter: Michael Mecharn
Phone: 473-5288
SUMMARY: In 1978 Congress passed the Nationai Flood Insurance Act. As part of this Act,
FEMA analyzed certain areas adjacent to streams,rivers and shoreline to determine flood hazard areas.
For the last several yeazs the City has been regulating development in shoreiine areas based upon the
designated certain areas in the Flood Insurance Rate Maps (FIRM). FEMA recently updated the
Flood Insurance Study and produced new and updated Flood Insurance Rate Maps. The attached
Ordinance is necessary by Federal Regulation to make the City compliant with Nation Flood
Insurance Act.
ATTACHMENTS: 1. Council Summary, and 2. Proposed Ordinance (JO . 51 3
FISCAL IMPACTS (Include Budgeted Amount): None A���-{a�Q,�
lv�'Fo> ;n�1v�t�h
APPROVALS: �S � �lVa;��Qlo �,
DEPARTMENT DIRECTOR: "� � Y1 C° �� �
CITY ATTORNEY: ' �'� ��� a
FINANCE DIRECTOR: � S�'4� �� (�
MAYOR: , �- � e�2.`I'tY19 . . •
�
COMMITTEE CHAIR
COUNCIL PRESIDENT: ` CONSENT AGENDA
GENERAL BUSINESS-❑
PUBLIC HEARING ❑
RECOMMENDED MOTION:
Move to pass Ordinance No. 5 t 23 amending Chapter 17.60.070 of the Bremerton Municipal Code
entitled "Floodplain Management."
COUNCIL ACTION: ❑ Approve ❑ Deny ❑ Table ❑ Continue ❑ No Action
� COUNCIL SUMMARY
FLOODPLAIN ORDINANCE
in 1978 Congress passed the National Flood Insurance Act. As part of this Act,
FEMA analyzed and set policy for development and building in areas near
streams, rivers and shorelines that are susceptible to flooding. In the Bremerton
area all areas adjacent to shorelines were designated as "Special Flood Hazard
Areas (SPFA). The SPFA were determined based on hydrological analysis. The
results of the hydrological analysis were published in the Flood Insurance Study
(FIS) and on Flood Insurance Rate Maps (FIRM). In the last two years, FEMA
update the FIS and FIRM for Kitsap County and all cities in Kitsap County. To
maintain our status with the National Flood Insurance Program and be in
compliance with Federal regulation the City Council need to modify BMC
17.60.070 relating to Floodplain Management. The only modification necessary
is to change the dates of the update FIS and FIRM. FEMA Staff has worked with
City staff to insure the remainder of the BMC 17.60 is in compliance with all other
federal regulations relating to Floodplain Management
ORDINANCE NO. 'J ( =� 3
AN ORDINANCE of the City Council of the City of
Bremerton, Washington, amending Section 17.60.070 of the
Bremerton Municipal Code relating to Floodplain Management.
WHEREAS, the current provisions of section 17.60.070 of the Bremerton
Municipal Code relating to Floodplain Management refer to Flood Insurance Rate maps that
have been recently updated; and
WHEREAS, the City Council desires to amend Bremerton Municipal Code
Section 17.60.070 provisions relating to Floodplain Management in order to reflect the updated
Flood Insurance Rate Maps; NOW THEREFORE,
THE CITY COUNCIL OF THE CITY OF BREMERTON, WASHINGTON,
DOES HEREBY ORDAIl�T AS FOLLOWS:
SECTION l. Section 17.60.070 of the Bremerton Municipal Code
entitled "Floodplain Management" is hereby amended to read as follows:
The areas of special flood hazard identified by the Federal Insurance Administration in a
scientific and engineering report entitled "The Flood Insurance Study for the City of Bremerton"
dated , , November 4, 2010 and any revisions thereto, with accompanying Flood
Insurance Rate Maps, and any revisions thereto, are hereby adopted by reference and declared to
be a part of this chapter. The Flood Insurance Study is on file at the Bremerton Department of
Community Development, 345 6th Street, Suite 600, Bremerton, WA 98337.
SECTION 2. Severabilitv. If any one or more sections, subsections, or
sentences of this Ordinance are held to be unconstitutional or invalid, such decision shall
not affect the validity of the remaining portion of this Ordinance and the same shall remain
in full force and effect.
SECTION3. Ef'fective Date. This ordinance shall take effect and be in
force ten (10) days from and after its passage, approval and publication as provided by law.
PASSED by the City Council the day of , 2010
1vICK WOFFORD, Council President
1 �
Floodplain Management
Approved this day of , 2010
PATTY LENT, Mayor
ATTEST: APPROVED AS TO FORM:
CAROL ETGEN, City Clerk ROGER A. LUBOVICH, City Attorney
PUBLISHED the day of , 2010
EFFECTIVE the day of , 2010
ORDINANCE NO.
R:U.EGAL\Ordinances\ORDINANCE FORM.doc
2
Floodplain Management
DATE SUBMITTED: 10/OS/2010
AGENDA BILL
CITY OF BREMERTON
CITY COUNCIL
........................................................................................
SUBJECT: Resolution No. 31�� Committee Meeting Date: October 13, 2010
providing for certain terms and covenants COiJNCIL MEETING Date: October 20, 2010
relating to the Limited Tax General Department: Finance
Obligation Bonds, 2010B to provide funds Presenter: Cathy Johnson
with which to pay a portion of the costs of Phone: 473-5296
Constructing the Park Avenue Plaza.
SUMMARY: Ordinance No. 5109 passed on Apri121, 2010 authorized the issuance and sale of the
City's Limited Tax General Obligation Bonds, 2010, in the principal amount of not to exceed
$9,600,000. On May 28, 2010 the City issued LTGO bonds in the principal amount of $6,910,000.
The remaining balance was to be issued only if the city was not successful in receiving grant funds for
the balance of the project. At this time grant funds have not been awarded and it has been determined
that any funds received would not be eligible for completion of the project in progress. By issuing the
bonds at the same time as the 2010 UTGO Refunding bonds the city can minimize the cost of
issuance.
ATTACHMENTS: Resolution No. 3 (24
FISCAL IMPACTS (Include Budgeted Amount): If approved, the annual debt service will be
approximately $170,000 per year over the twenty year life of the issue. Debt service for the Pazk
Avenue Plaza project, in excess of the state funded local revitalization financing, is planned to come
from future Real Estate Excise tax revenues.
APPROVALS: �n � r�
DEPARTMENT DIRECTOR:
� S ti Iti-�1 ov�,,
CITY ATTORNEY:
FINANCE DIRECTOR: W � � � �
MAYOR: YL l aGta
COMMITTEE CHAIR � � •��J � � �� °1a
.
COUNCIL PRESIDENT: CONSENT AGENDA
GENERAL BUSINESS ❑
PUBLIC HEARING ❑
RECOMMENDED MOTION: Move to adopt Resolution No. 3� providing for certain terms
and covenants relating to the Limited Tax General Obligatiun Bonds, 2010B to provide fund with
which to pay a portion of the costs of constructing the Park Avenue Plaza.
COUNCIL ACTION: ❑ Approve ❑ Deny ❑ Table ❑ Continue ❑ No Action
.�
RESOLUTION NO. 3124
A Resolution of the City Council of the City of Bremerton,
Washington providing for certain terms and covenants relating to
the Limited Tax General Obligation Bonds, 2010B (Taxable Build
America Bonds — Direct Payment) to provide funds with which to
pay a portion of the costs of constructing a parking facility,
renovating a park and purchasing and renovating a building to be
used as a municipal courthouse. ,
WHEREAS the City Council (the "City Council") of the City of Bremerton, Washington
(the "City"), by Ordinance No.5109, passed on Apri121, 2010 (the "Bond Ordinance"),
authorized the issuance and sale of the City's Limited Tax General Obligation Bonds, 2010, in
the principal amount of not to exceed $9,600,000; and
WHEREAS, on May 28, 2010, the City issued its Limited Tax General Obligation
Bonds, 2010 (Taxable Build America Bonds — Direct Payment) in the principal amount of
$6,910,000;
WHEREAS it is in the best interest of the City that a second series of Limited Tax
General Obligation Bonds be sold to D.A. Davidson & Co. (the "Purchaser") on the terms set
forth in the Bond Ordinance and this resolution; NOW, THEREFORE,
BE IT RESOLVED BY THE COUNCIL OF THE CITY OF BREMERTON:
Section 1. Definitions. Except as otherwise defined herein, capitalized terms used in
this resolution have the meanings set forth in the Bond Ordinance.
Section 2 . Terms of Bonds The Bonds shall be issued in a series of t�able build
America bonds designated the "Limited Tax General Obligation Bonds, 2010B (T�able Build
America Bonds — Direct Payment)" in the aggregate principal amount of $2,220,000 (the
"Bonds"). The Bonds shall mature on the dates and in the principal amounts and at the interest
rates as follows:
Maturity Date
(December 1) Principal Amounts Interest Rates
2013 $ 100,000 1.911%
2014 100,000 2.334 ,
2020 - 645,000 3.900
2025 625,000 5.269 �
2030 750,000 6.041
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51098727 3
�
Interest on the Bonds shall be payable on June 1, 2011 and on each December 1 and
June 1 thereafter. The Bonds shall conform in all other respects to the terms and conditions
specified in the Bond Ordinance. �
Optional Redemption. Bonds maturing in the years 2013 through 2020, inclusive, shall
be issued without the right or option of the City to redeem those Bonds prior to their stated
maturity dates. The City reserves the right and option to redeem the Bonds maturing on or after
December 1, 2021 prior to their stated maturity dates at any time on or after December 1, 2020,
as a whole or in part (within one or more maturities selected by the City), at par plus accrued
interest to the date fixed for redemption.
In the case of an optional redemption, the notice may state that the City retains the right
to rescind the redemption notice and the related optional redemption of Bonds by giving a notice
of rescission to the affected Registered Owners at any time prior to the scheduled optional
redemption date. Any notice of optional redemption that is so rescinded shall be of no effect,
and the Bonds for which the notice of optional redemption has been rescinded shall remain
outstanding.
Extraordinary Optional Redemption. The City additionally reserves the right and option
to redeem the Bonds prior to their stated maturity dates at any time prior to December 1, 2020, as
a whole or in part, upon the occurrence of an Extraordinary Event, at the Extraordinary Optional
Redemption Price.
An "Extraordinary Event" will have occurred if the City determines that a material
adverse change has occurred to Section 54AA or Section 6431 of the Code or there is any
guidance published by the Internal Revenue Service or the United States Treasury with respect to
such Sections or any other determination by the Internal Revenue Service or the United States
Treasury, which determination is not the result of any act or omission by the City to satisfy the
requirements to qualify to receive the 35% cash subsidy payment from the United States
Treasury, pursuant to which the City's 35% cash subsidy payment from the United States
Treasury is reduced or eliminated.
"Extraordinary Optional Redemption Price" means the greater � of (i) 100% of the
principal amount of the Bonds to be redeemed or (ii) the sum of the present values of the
remaining scheduled payments of principal of and interest to the earlier of (A) the stated maturity
date on the Bonds to be redeemed or (B) the next available date on which the Bonds may be
optionally redeemed at a price of par (plus accrued interest, if any), discounted (on a semi-annual
basis, assuming a 360-day year consisting of twelve 30-day months) to the date on which such
Bonds are to be redeemed at the Treasury Rate plus 50 basis points, plus, in each case, accrued
interest on the Bonds to be redeemed to the date fixed for redemption.
"Treasury Rate" means, with respect to any date fixed for redemption for a particular
Bond, the yield to maturity as of such date of United States Treasury securities with a constant
maturity (excluding inflation indexed securities, and as compiled and published in the most
recent Federal Reserve Statistical Release H.15 (519) that has become publicly available as of
� -2-
51098727.3
the first Business Day that is at least 35 days prior to such scheduled redemption date or, if such
Statistical Release is no longer published, any publicly available source of similar market data)
most nearly equal to the period from such date to the stated maturity date of such Bond.
At the request of the City, the Extraordinary Optional Redemption Price shall be
determined by an independent accounting firm, investment banking firm or financial advisor
retained by the City at the City's expense. Absent manifest error, such determination shall be
conclusive and binding on the City, the Bond Registrar and the Registered Owners, and neither -
the City nor the Bond Registrar shall be liable for relying on such determination. _
Mandatory Redemption. The Bonds stated to mature on December 1 in the years 2020,
2025 and 2030 are Term Bonds and, if not optionally redeemed, extraordinary optionally
redeemed, purchased or defeased in accardance with the Bond Ordinance, are subject to
mandatory redemption randomly (in such manner as the Bond Registrar shall determine) at a
redemption price equal to 100% of the principal amount thereof, plus accrued interest to the date
fixed for redemption, and without premium, on December 1 in the years and principal amounts
as follows:
Term Bonds Maturing in 2020
Year Principal Amount
2015 $ 100,000
2016 105,000
2017 105,000
2018 � - 110,000
� 2019 110,000
2020* 115,000
* Maturity.
Term Bonds Maturing in 2025
Year Principal Amount
2021 $ 115,000
2022 120,000
2023 125,000
2024 130,000
2025* 135,000
* Maturity.
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� 51098727 3
Term Bonds Maturing in 2030
Year Principal Amount
2026 $ 140,000
2027 145,000
2028 150,000
2029 155,000
2030* 160,000
* Final maturity.
If the City shall redeem Term Bonds under the optional or extraordinary optional
redemption provisions set forth above or purchase Term Bonds in the open market as set forth in
the Bond Ordinance, the principal amount of the Term Bonds so redeemed or purchased
(irrespective of their actual redemption or purchase prices) shall be credited against one or more
scheduled mandatory redemption amounts for those Term Bonds (as allocated by the City)
beginning not earlier than 60 days after the date of the optional redemption or purchase, and the
City shall promptly notify the Bond Registrar in writing of the manner in which the credit for the,
Term Bonds so redeemed or purchased has been allocated.
Partial Redemption. If fewer than all of the outstanding Bonds of a single maturity are to
be redeemed prior to maturity, then (a) if the Bonds are in book-entry form at the time of such
redemption, the Bond Registrar shall instruct DTC to instruct the DTC Participants to select the
specific Bonds for redemption randomly within each maturity for the Bonds, and neither the City
nor the Bond Registrar shall have any responsibility to ensure that DTC or the DTC Participants
properly select such Bonds for redemption, and (b) if the Bonds are not in book-entry form at the
time of such redemption, on each date fixed for redemption, the Bond Registrar shall select the
specific Bonds for redemption randomly within each maturity for the Bonds. The portion of any
Bonds of a denomination more than $5,000 to be redeemed shall be in the principal amount of
$5,000 or any integral multiple thereof. The Bond Registrar shall select such portions of Bonds
to be redeemed in such manner as the Bond Registrar in its discretion may deem to be fair and
appropriate. Notwithstanding the foregoing, for as long as the Bonds are registered in the name
of DTC or its nominee, selection of Bonds for redemption shall be in accordance with the Letter
of Representations.
Section 3 Election to Treat Bonds as "Build America Bonds"; Tax Covenants The
City hereby irrevocably elects to have Section 54AA of the Code apply to the Bonds so that the
Bonds are treated as "Build America Bonds," and further to have Subsection 54AA(g) of the
Code apply to the Bonds so that the Bonds are treated as "qualified bonds" with respect to which
the City will be allowed a credit payable by the United States Treasury to or to the order of the
City pursuant to Section 6431 of the Code in an amount equal to 35% of the interest payable on
the Bonds on each interest payment date. The City hereby authorizes and directs the Financial
Services Director (or her designee) to take such actions and enter into such agreements as are
necessary or appropriate for the City to receive or cause to be received from the United States
Treasury the applicable federal credit payments in respect of the Bonds, including but not limited
to the timely filing with the Internal Revenue Service of Form 8038-CP —"Return for Credit
• -4-
51098727 3
Payments to Issuers of Qualified Bonds" in the manner prescribed by Internal Revenue Service
Notice 2009-26. �
Section 4. Approval of Documents. The City hereby approves the Preliminary
Official Statement for the Bonds that has been presented to the City and ratifies its use in
connection with the offering of the Bonds. The City further hereby approves the sale of the
Bonds to the Purchaser on the terms set forth in this resolution and in its contract dated the date
of this Resolution. The Mayor or Interim Director of Financial Services are hereby authorized to
sign the bond purchase contract relating to the Bonds.
Section 5. Authorization of Post Issuance Compliance Policy. The City Council
hereby authorizes the Interim Director of Financial Services to prepare and approve a post
issuance compliance policy in connection with the Bonds. °
, Section 6. Severabilitv. The covenants contained in this resolution shall constitute a
contract between the City and the owners of each Bond. If any one or more of the covenants or
agreements provided in this resolution to be performed on the part of the City shall be declared
by any court of competent jurisdiction to be contrary to law, then such covenant or covenants,
agreement or agreements, shall be null and void and shall be deemed separable from the
remaining covenants and agreements of this resolution and shall in no way affect the validity of
the other provisions of this resolution or of the Bonds.
Section 7. Ratification of Prior Acts. Any action taken consistent with the authority
of the Bond Ordinance or this resolution but prior to their effective dates are hereby ratified,
approved and confirmed. �
Section 8. Effective Date. This resolution shall be effective after its adoption as
provided by law.
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57098727 3
ADOPTED by the City Council the 20�' day of October, 2010 �
NICK WOFFORD, Council President
Approved this day of October, 2010
PATTY LENT, Mayor
ATTEST: APPROVED AS TO FORM:
CAROL ETGEN, City Clerk Foster Pepper PLLC, as Bond Counsel
PUBLISHED the day of , 2010
EFFECTIVE the day of , 2010
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51098727 3
CERTIFICATION
I, the undersigned, City Clerk of the City of Bremerton, Washington (the "City"), hereby
certify as follows:
1. The attached copy of Resolution No. 3124 (the "Resolution") is a full, true and
correct copy of a resolution duly passed at a regular meeting of the City Council of the City held
at the regular meeting place thereof on October 20, 2010, as that resolution appears on the
minute book of the City; and the Resolution will be in full force and effect five days after
publication in the City's official newspaper; and
2., A quorum of the members of the City Council was present throughout the
meeting and a majority of those members present voted in the proper manner for the passage of
the Resolution.
IN WITNESS WHEREOF, I have hereunto set my hand this day of October, 2010.
CITY OF BREMERTON, WASHiNGTON
City Clerk
51098727_3 _
♦
CITY OF BREMERTON
Z��'''' � — $9,920,000 UNLIMITED TAX GENERAL
�rcl%hah� � s�ay OBLIGATION REFUNDING BONDS, 2010
�� �� _. $2,220,000 LIMITED TAX GENERAL
� {S,I � OBLIGATION BONDS, 2010 �TAXABLE BUILD
� N� 3ray AMERICA BONDS - DIRECT PAYMENT�
FINAL RESULTS
October 20, 2010
DA David Trageser Suzanne Eide
Davidson Senior Vice President Vice President
• � • & Cp m 5 PC ` (206J 903-8699 (206J 903-8690
FIXED INCOME CAPITAL MARKETS dtrapeserCa�dadco seideCa�dadco
Mark Froio
Vice President
(206) 903-8664
mfroioCa�dadco.com
` . City of Bremerton
Bond Sale Plan
1) Confirm Solid Investment Grade Rating from Moody's
• Received confirmation of A1 LTGO and Aa3 UTGO underlying ratings from
Moody's.
2) Refunding Savings target
• Refunded 2002 callable UTGO Bonds
• 3.22% True Interest Cost
• Achieved a net present value savings of 6.80% (4.00% was minimum goalj
of the refunded bonds
o $808,765 Net Savings
o $633,837 Net PV Savings
3) Minimize Borrowing Costs on New Money Bonds
� Utilized Bank of America Bonds
� 3.49% True Interest Cost (Net of federal credit)
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City of Bremerton
Sources & Uses
Dated Date 11/2/2010
Delivery Date 11/2/2010
es: 20 2 010LT 8 Total
eond Proceeds:
ParAmount 9,920,000.00 2,220,000.00 12,140,000.00
Net Premium 357,267.25 357,267.25
10,277,267.25 2,220,000.00 12,497,267.25
Other Sources of Funds:
Bond Fund Contribution 200,000.00 200,000.00
10,477,267.25 2,220,000.00 12,697,267.25
Uses: 2010UT 2010LTB Total
Project Fund Deposits:
Project Fund 2,200,000.00 2,200,000.00
Refunding Escrow Deposits:
Cash Deposit 0.37 0.37
SLGS Purchases 10,387,010.00 10,387,010.00
10,387,010.37 10,387,010.37
Delivery Date Expenses:
Underwriter's Discount 65,472.00 14,652.00 80,124.00
Bond Counsel Fee 14,385.63 3,219.37 17,605.00
Moody's Rating Fee 6,291.93 1,408.07 7,700.00
Escrow Verification 2,500.00 2,500.00
Escrow Agent 1,100.00 1,100.00
89, 749.56 19, 279.44 109,029.00
Other Uses of Funds:
Additional Proceeds 507.32 720.56 1,227.88
10,477,267.25 2,220,000.00 12,697,267.25
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City of Bremerton
Debt Service— UTGO Bonds
Period
E nding Princ Coupon I nteres t De Serv ice Annu Debt S
6/1/2011 190,995.52 190,995.52
12/1/2011 60,000 2.000% 164,493.75 224,493.75 415,489.27
6/1/2012 163,893.75 163,893.75
12/1/2012 85,000 2.000% 163,893.75 248,893.75 412,787.50
6/1/2013 163,043.75 163,043.75
12/1/2013 530,000 2.000% 163,043.75 693,043.75 856,087.50
6/1/2014 157,743.75 157,743.75
12/1/2014 540,000 2.000% 157,743.75 697,743.75 855,487.50
6/1/2015 152,343.75 152,343.75
12/1/2015 550,000 2.500% 152,343.75 702,343.75 854,687.50
6/1/2016 145,468.75 145,468.75
12/1/2016 570,000 2.500% 145,468.75 715,468.75 860,937.50
6/1/2017 138,343.75 138,343.75
12/1/2017 580,000 3.000% 138,343.75 718,343.75 856,687.50
6/1/2018 129,643.75 129,643.75
12/1/2018 600,000 3.000% 129,643.75 729,643.75 859,287.50
6/1/2019 120,643.75 120,643.75
12/1/2019 615,000 3.000% 120,643.75 735,643.75 856,287.50
6/1/2020 111,418.75 111,418.75
12/1/2020 630,000 3.500�0 111,418.75 741,418.75 852,837.50
6/1/2021 100,393.75 100,393.75
12/1/2021 655,000 3.7509'a 100,393.75 755,393.75 855,787.50
6/1/2022 88,112.50 88,112.50
12/1/2022 680,000 4.00O�o 88,112.50 768,112.50 856,225.00
6/1/2023 74,512.50 74,512.50
12/1/2023 710,000 4.000% 74,512.50 784,512.50 859,025.00
6/1/2024 60,312.50 60,312.50
12/1/2024 735,000 4.000% 60,312.50 795,312.50 855,625.00
6/1/2025 45,612.50 45,612.50
12/1/2025 765,000 4.000% 45,612.50 810,612.50 856,225.00
6/1/2026 30,312.50 30,312.50
12/1/2026 795,000 3.5009'0 30,312.50 825,312.50 855,625.00
6/1/2027 16,400.00 16,400.00
12/1/2027 820,000 4.000% 16,400.00 836,400.00 852,800.00
9,920,000 3,751,889.27 13,671,889.27 13,671,889.27
TIC: 3.22%
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City of Bremerton
Debt Service— LTGO Bonds
Annual Net Debt
Date Principal Interest Total Debt Service BAB Adjus Net Debt Service Service
6/1/2011 62,490.27 62,490.27 -21,871.59 40,618.68
12/1/2011 53,81938 53,81938 -18,836.78 34,982.60 75,601.28
6/1/2012 53,819.38 53,819.38 -18,836.78 34,982.60
12/1/2012 53,81938 53,819.38 -18,836.78 34,982.60 69,965.20
6/1/2013 53,819.38 53,819.38 -18,836.78 34,982.60
12/1/2013 100,000 53,819.38 153,819.38 -18,836.78 134,982.60 169,965.20
6/1/2014 52,863.88 52,863.88 -18,502.36 34,361.52
12/1/2014 100,000 52,863.88 152,863.88 -18,502.36 134,361.52 168,723.04
6/1/2015 51,696.88 51,696.88 -18,093.91 33,602.97
12/1/2015 100,000 51,696.88 151,696.88 -18,093.91 133,602.97 167,205.94
6/1/2016 49,746.88 49,746.88 -17,411.41 32,335.47
12/1/2016 105,000 49,746.88 154,746.88 -17,411.41 137,335.47 169,670.94
6/1/2017 47,69938 47,69938 -16,694.78 31,004.60
12/1/2017 105,000 47,699.38 152,699.38 -16,694.78 136,004.60 167,009.20
6/1/2018 45,651.88 45,651.88 -15,978.16 29,673.72
12/1/2018 110,000 45,651.88 155,651.88 -15,978.16 139,673.72 169,347.44
6/1/2019 43,506.88 43,506.88 -15,227.41 28,279.47
12/1/2019 110,000 43,506.88 153,506.88 -15,227.41 138,279.47 166,558.94
6/1/2020 41,361.88 41,361.88 -14,476.66 26,885.22
12/1/2020 115,000 41,361.88 156,361.88 -14,476.66 141,885.22 168,770.44
6/1/2021 39,119.38 39,119.38 -13,691.78 25,427.60
12/1/2021 115,000 39,119.38 154,119.38 -13,691.78 140,427.60 165,855.20
6/1/2022 36,089.70 36,089.70 -12,631.40 23,45830
12/1/2022 120,000 36,089.70 156,089.70 -12,631.40 143,458.30 166,916.60
6/1/2023 32,92830 32,92830 -11,524.91 21,403.39
12/1/2023 125,000 32,92830 157,928.30 -11,524.91 146,403.39 167,806.78
6/1/2024 29,635.18 29,635.18 -10,372.31 19,262.87
12/1/2024 130,000 29,635.18 159,635.18 -10,37231 149,262.87 168,525.74
6/1/2025 26,23033 26,210.33 -9,173.62 17,036.71
12/1/2025 135,000 26,21033 161,210.33 -9,173.62 152,036.71 169,073.42
6/1/2026 22,653.75 22,653.75 -7,928.81 14,724.94
12/1/2026 140,000 22,653.75 162,653.75 -7,928.81 154,724.94 169,449.88
6/1/2027 18,425.05 18,425.05 -6,448.77 11,976.28
12/1/2027 145,000 18,425.05 163,425.05 -6,448.77 156,976.28 168,952.56
6/1/2028 14,04533 14,045.33 -4,915.87 9,129.46
12/1/2028 150,000 14,04533 164,045.33 -4,915.87 159,129.46 168,258.92
6/1/2029 9,514.58 9,514.58 -3,330.10 6,184.48
12/1/2029 155,000 9,514.58 164,514.58 -3,330.10 161,184.48 167,368.96
6/1/2030 4,832.80 4,832.80 -1,691.48 3,141.32
12/1/2030 160,000 4,832.80 164,832.80 -1,691.48 163,141.32 166,282.64
2,220,000 1,463,551.29 3,683,551.29 -512,242.97 3,171,308.32 3,171,308.32
TIC: 3.49%
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MoonY's
INVESTORS SERVICE
New Issue: MOODY'S ASSIGNS Aa3 RATING TO BREMERTON CITY (WA) $10.0 MM UNLIMITED
TAX G.O. REFUNDING BONDS, 2010AAND A1 RATING TO $2.2 MM LIMRED TAX G.O. BONDS,
20106
Global Credit Research - 19 Oct 2010
Aa3 UTGO RATING AFPIItMED ON $11.2 MM L�1 OBLIGATiOKS; A1 LTGO RAT�IG AFFECTS $18.8 MM N PARITY DEBT, L�ICLUDING
CURRENT OFFER�IGS
Municipality
WA
Moodys Rating
ISSUE RATING
Unlimited Tax General Obligation Refunding Bonds, 2010A(Tax-Exempt) Aa3
Sale ArrourK $9,985,000
E�ected Sale Date 10/20/10
Rating Descriptfon General ObligaGon
Limited Tax General Obligation Refunding Bonds, 2010B (Taxable Build America Bonds - Direct Payment) A1
Sale AmourK $2,225,000
F�ected Sale Date 10/20/10
Rating Description General Obligation Limited Tax
Opinion
NEW YORK, Oct 19, 2010 - Moodys Investors Service has assigned an Aa3 rating to the City of Bremerton, Washington, Unlimited Tax General
Obligation Refunding Bonds, 2010Ain the approximate amount of $10.0 million; this offering is secured by the full faith, credit and resources of
the city to irrevocably make annual levies of ad valorem taxes without limitation. Bond proceeds will refund certain maturities of the citys
Unlimited Tax General Obligation Bonds, 2002. At this time, Nbodys has affirmed the Aa3 unlimited tax general obligation rating UTGO debt
totaling $11,215,000)
Concurrently, Nbodys has assigned an A1 rating to the citys Limited Tax General Obligation Bonds, 2010B in the approbmate amount of $2.2
million; this offering is secured by the full faith and credit of the city within the constitutional and statutory limitations of non-voter approved debt.
Bond proceeds will finance the construc6on of parking facilities. At this time, Moodys affirms theA1 limited tax general obligation rating (LTGO
debt totaling $20.9 million).
RATING RATIONALE
The ratings reflect the city's moderately sized tax base, slightly below average wealth levels, satisfactory financial operations, and manageable
debt profile.
TAX BASE DECLWES; NAW PRESENCE DOIv�NATES LOCAL ECONOMY
Due to its location on the Puget Sound, the city has a sizeable and stable military presence. The citys largest employer is the United States
Department of the Navy, which employs over 10,000 individuals. From coliection year 2003 to 2008, taxable values increased by 14.5% on an
average annual basis, with above average increases of 20.3% (2006), 21.1 %(2007) and 15.7% (2008). In the two previous tax collection years,
the effects of the national recession and housing downtum were realized: taxable values declined by 1.0% (2009) and 6.0% (2010) to $2.9 billion.
Officials anticipate additional declines of up to 2% for collection year 2011 and expect stabilization by 2012.
2000 census per capita and median family wealth levels were 73% ($16,724) and 68% ($36,358) of state levels, respectively. 2010 full value per
capita of $80,118 is below the median for Washington cities. The most recentAugust 2010 unemployment rate of 8.9% is slightly greater than
the state's 8.8% rate.
WEAK FINANCIAL OPERATIONS BOLSTERED BY CONTWGENCY RESERVES
General fund balances shrunk in 2008 and 2009, compared to fiscal years 2004 through 2007, during which reserve levels averaged 12.1 % of
general fund revenues ($3.6 million). In fiscal 2008 and unaudited fiscal 2009, resenres fell to 4.1% ($1.3 million) and 6.3% ($1.9 million),
respectively. These levels are well-below the citys reserve policy that encourages ending cash and investment general fund balances to be no
less than 8.5% of planned annual operating expenses. Management attributes the decline to planned draw downs in general fund balance, which
were ill-timed with the unforeseen tax revenue declines associated with the national recession and housing downtum. Additionally, the city made
Uansfers of payments in lieu of taxes from its water and wastewater enterprises in the total appropmate amount of $2.8 million for fiscal 2009.
The city, however, dces maintain a separate contingency reserve fund, which does not count toward the citys reserve policy and had a year-end
fund balance of approximately $1.8 miilion (fiscal 2008) and $1.3 million (unaudited fiscal 2009). Including these additional balances, the city's
available reserves represent 10.5% ($3.1 million) and 10.4% ($3.2 million) of general fund revenues, respectively. Although no plans have been
specified to use the contingency reserve fund monies in the near term, officials intend to utilize the fund for one-time only expend'Rures.
Looking forward to ending fiscal 2010, the city has implemented budget adjustments that total $1.4 million and expect that ending total general
fund balance will be level at $2.0 million, which is greater than its April 30, 2010 forecast of $1.4 million; oTficials also anticipate that the city's
contingency reserve fund wili have approximately $1.0 million at the end of fiscal 2010. Adjustments included reductions and deferrals to staff
hires, implementation of unpaid furlough days and a voluntary early separation program, layoffs and other operational eificiencies. Officials have
i�dicated that they expect to fu�ll their general fund reserve policy by growing ending fund balance by $400,000 to $500,000 annually. Future
credit reviews will focus on managemenYs ability to maintain fiscal balance and restore reserves to policy target levels in the near- to medium-
term.
MANAGEABLE DEBT PROFILE; PAYAIENTS SUPPORTED BY REVffALIZATIONAREAPROJECT
Nbody's expects the cit�ls debt position to remain manageable given limited future borrowing plans. The current uniimfted tax general obligation
and limited tax general obligation proceeds will respectively refinance certain maturities of the city's Unlimited Ta�c General Obligation Bonds,
2002 and finance the construction of parking areas. Direct and overall debt burdens remain manageable at 1.0% and 2.2%, respectively. Payout
of principal is slightly below average at 40.3% in ten years. Of note and unrated by Moodys, the city's Weeldy Rate Demand Revenue Bonds,
2003 (Kitsap Regional Conference Center Parking Garage) remain outstanding with a letter of credit, which is scheduled to expire on August 10,
2011. The city is cunenUy evaluating options to refinance its 2063 bonds which are secured by revenues of the parking system and are not
general fund obligations of the city.
The limited tax general obligation offering is secured by the full faith and credit of the City within the constitu6onal and statutory limitations of non-
voter approved debt. Officials expect to pay a portion of debt service with money received under the Local Revitalization Financing (LRF)
program. The city has received approval from the Washington State Department of Revenue to collect an LRF tax for improvements to the
Bremerton Harborside RevitalizationArea (the revitalization area). The LRF tax, which shall not exceed 0.051%, is an additional local sales and
use tax that is imposed by the city and collected by the state Department of Revenue. The city e�ects to receive a state contribution of no more
than $330,000 annually, which is generated by the LRF tax, and intends to pledge these revenues to pay debt service on the poRion of the bonds
issued for the revitalization area. There will be a two-month lag between the time the tax is collected and the time it is received by the city; on
September 30, 2010, the ciry received its first LRF payment from the state in the amount of $29,498. Additionaliy, the city can capture additional
revenues from property tax and salesluse tax incremeni; however, at this time no cities have opted to become participants, and the city dces not
expect to coilect these additional revenues.
W hat could move the rating - UP
- Trend of signficant tax base growth
- Substantial appreciation of wealth measures
What could move the rating - DOWN
- Significant deterioration of financial pcuition
- Protracted decline in assessed valuation
KEY STATISTICS
2009 estimated population: 36,190
2010 full value: $2.9 billion
1999 per capita income: $16,724 (72.8% of state)
t999 median family income: $36,358 (67.6% of state)
2010 fuil value per capita: $80,118
Direct debt burden: 1.0%
Overall debt burden: 2.2%
Payout of principle (10 years): 40.3%
Fiscal 2008 general fund balance: $1.3 million (4.1% of revenues)
Fiscal 2008 general fund balance, including contingency reserve: $3.1 million (10.5% of revenues)
Unaud'Red fiscal 2009 general fund balance: $1.9 million (6.3% of revenues)
Unaud'Red fiscal 2009 general fund balance, including contingency reserve: $3.2 million (10.4% of revenues)
PRWCIPALW�THODOLOGYAND LAST RATINGACTION
The last rating action with respect to City of Bremerton, Washington was on May 18, 2010 when a municipal finance scale limited tax general
obligation bonds raGng ofA1 was assigned to the City of Bremerton, Washington.
The principal methodologies used in assigning the ratings were Nbodys General Obligation Bonds Issued by U.S. Local Govemments,
published on October 2009, and Bond Anticipation Notes and Other Short Term Financings, published on May 2007, and both available on
www.moodys.com in the Rating Methodologies sub-directory under the Research & Ratings tab. Other methodologies and factors that may
have been considered in the process of rating this issuer can also be found in the Rating Methodologies sul�directory on Moodys website.
REGULATORY DISCLOSURES
Information sources used to prepare the credit rating are the following: parties invoNed in the ratings, public information.
Moodys Investors Service considers the quality of information available on the credit satisfactory for the purposes of assigning a credit rating.
MOODY'S adopts ail necessary measures so that the information it uses in assigning a credit rating is of sufficient qualily and from sources
MOODY'S considers to be reliable including, when appropriate, independent third-party sources. However, MOODV'S is not an aud'Ror and
cannot in every instance independently verify or validate information received in the rating process.
Please see ratings tab on the issuer/entity page on Moodys.com for the last rating action and the rating history.
The date on which some Credit Ratings were first released goes back to a time before Nbodys Investors Service's Credit Ratings were fuily
digitized and accurate data may not be available. Consequently, Wbodys Investors Service provides a date that it believes is the most reliable
and accurate based on the information that is available to it. Please see the ratings disclosure page on our website www.moodys.com for further
information.
Please see the Credit Policy page on Moodys.com for the methodologies used in determining ratings, further informaGon on the meaning of each
rating category and the definition of default and recovery.
Analysts
Justin Resuello
Analyst
Public Finance Group
Moodys Investors Service
Patrick Ford
Backup Analyst
Public Finance Group
Nbodys Investors Service
Matthew A Jones
Senior Credit Oificer
Public Finance Group
Nbodys Investors Service
Contacts
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Research Clients: (212) 553-1653
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DATE SUBMITTED: Sept. 1�` 2010
AGENDA BILL
CITY OF BREMERTON
C�TY COUNC�L
■e����e������������e��o��������������ot������e�������������o���o��oaa���a����rno�aa�e�a�
SUBJECT: Agreement with Our Lady Star Committee Meeting Date: _ S� 4 c��- 13
of the Sea School for Non-Exclusive COIJNCIL MEETING Date: .;�lStll a c-}�(�, Z,p
weekday use of Kiwanis Park Department: Parks and Rec.
Presenter: Wyn Birkenthal
Phone: 473-5752
Si:iNIlVIARY: The non-exclusive, weekday paric use agreement with Our Lady Star of the Sea grants
the school the ability to use Kiwanis Pazk for recess and physical education activities. In retum for use
of the park area during the schoo� year the Corporation of the Catholic Archbishop of Seattle has
arranged for a$ yaD, � contribution to help complete the re-development of Kiwanis Park.
The capital contribution leverages previously approved funding sources including a$400,000 Land
and Water Conservation grant. _
ATTACHMENTS: "A" Agreement with Our Lady Star of the Sea
"B" Kiwanis Park Improvement Plan
FISCAL IMPACTS �(Include Budgeted Amount):
APPROVALS:
DEPARTMENT DIRECTOR:
CITY ATTORNEY:
FINANCE DIRECTOR:
MAYOR:
COMMITTEE CHAIR �1, � v ��
COUNCIL PRESIDENT: CONSENT AGENDA ❑
GENERAL BUSINESS ('�
PUBLIC HEARING ❑
RECOMMENDED MOTION: I move for approval of the Park Use Agreement with Our Lad�y Star
of the Sea for non exclusive, weekday, use of Kiwanis Park during the Sept. 1 through June 15
school year
�
and authorize the Mayor to finalize and execute the agreement with substantially the same tenns
and conditions as presented.
COUNCIL ACTION: ❑ Approve ❑ Deny ❑ Table ❑ Continue ❑ No Action
PARK USE AGREEMENT
This AGREEMENT is made and entered into as of the date fully executed below, by and
between the CITY OF BREMERTON, a Washington municipal corporation ("City"), and
CORPORATION OF THE CATHOLIC ARCHBISHOP OF SEATTLE sole dba as OUR
LADY STAR OF THE SEA, a Washington corporation ("School").
WHEREAS, City is the owner of certain real property in the City of Bremerton, Kitsap
County, Washington, commonly known as Kiwanis Park, legally described on Exhibit A
attached hereto and by this reference made a part hereof (hereinafter "Property"); and
WHEREAS, School desires to utilize the Property for the purpose of holding school
related physical education and recess activities and City is willing to authorize such use in
exchange for funding for capital improvements to the Property arranged by the School.
NOW, THEREFORE, in consideration of the mutual benefits to be derived by the parties
hereto, it is agreed:
1. INCORPORATION OF RECITALS: The foregoing Recitals are incorporated
herein by this reference and made a part hereof.
2. USE: City hereby authorizes School non-exclusive use of the Property for the
purpose of holding school related physical education and recess activities. School's use of the
Property is limited to Monday thru Friday commencing at 10:00 am and ending at 1:00 pm
during the school year, September 1 through June 15 of any given year, unless otherwise
permitted by the City Parks and Recreation Department ("Department"). The School has non-
exclusive use of the park during the term of this agreement and shall give way under the
following circumstances:
(a) With 5 business days written notice, the City Parks and Recreation
Department may interrupt use of Property by the School during the school year for any
reason.
(b) T'he CiTy sha11 not exercise this interruption for more than 12 days per
calendar year, excluding any park closure necessitated by exigent maintenance or safety
considerations.
(c) School shall not request or cause the removal of the general public from
enjoying use or otherwise interfere with the general public's lawful use of the park.
The Director of the Department ("Director"), at his or her discretion, may authorize by
permit the exclusive use of the Property on a limited basis for special events and activities in
accordance with department policies.
1
3. USE CONDITIONS: School, for itself and its successors and assigns, covenants
as follows:
(a) This authorization is given only for the above stated purpose. Any
extension or modification of the scope of use shall only be in writing.
(b). School shall reasonably cany out the uses allowed within the Property so
as not to interfere with the City's use and operation of the Property.
(c) School sha11 maintain the Property in good condition, shall clean any
debris and litter, and shall be responsible for any property damage resulting from its use
of the property.
(d) School shall be responsible for the clean-up and removal of litter, debris,
portable sports equipment and related items resulting from its use of the Property.
(e) No permanent signage, fixtures, displays shall be constructed on the
Property without the City's written consent.
(fj School will inform the Parks Director or his�her designee of any damage
to the park within 24 hours discovering such damage.
(g) No sale of any items shall take place on the Property.
(h) No alcohol shall be consumed on the Property.
(i) School shall not enter into any sub agreements with any other party or
engage in other uses of the Property not stipulated in this agreement.
(j) School use of the pazk is subject to park rules as currently enacted and as
thereafter amended.
4. TERM: The term of this agreement shall be for ten years commencing
, 2010, ("Commencement Date") and ending , 2020, unless
otherwise terminated.
5. PAYMENT: In consideration for the use stated herein, School shall pay the City
�C,l(� ;�}un r�(+�� thousand dollars $�/ due and payable prior to School's use of the
Property, which funds the City will use toward the renovation and improvement of the Property.
6. TERMINATION: This agreement sha11 terminate upon expiration of the term
hereof unless earlier terminated as follows:
(a) In the event School fails to observe or perform any of the covenants,
conditions, or provisions of this agreement to be observed or performed by School where
2
such failure shall continue for a period of thirty (30) days after written notice thereof by
City to School, City may, at any time thereafter, terminate this agreement by written
notice to School. City may also seek any other remedy provided by law.
(b) City may terminate this agreement as deemed necessary by City, for
convenience and for no consideration or damages, should the Property be sold,
redeveloped or remodeled or for other reasons, upon the determination of City, at its sole
discretion, that the agreement interferes with the City's use of the Property.
7. INDEMNIFICATION: School shall defend, indemnify and hold the City, its
officers, officials, employees, agents and volunteers harmless from any and all claims, injuries,
damages, losses or suits, including all legal costs and attorney fees, arising out of or in
connection with the School's use of the Property pursuant to this Agreement, except for that
portion of the injuries and damages caused by the City's sole negligence.
Should a court of competent jurisdiction determine that this Agreement is subject to
RCW 4.24.115, then, in the event of liability for damages arising out of bodily injury to persons
or damages to properly caused by or resulting from the concunent negligence of the School and
the City, its officers, officials, employees, agents and volunteers, the School's liability hereunder
shall be only to the extent of the School's negligence.
IT IS FURTHER SPECIFICALLY AND EXPRESSLY UNDERSTOOD THAT THE
INDEMNIFICATION PROVIDED HEREIN CONSTITUTES THE SCHOOL'S WAIVER OF
IMMUNITY UNDER INDUSTRIAL INSURANCE, TITLE 51 RCW, SOLELY FOR THE
PURPOSES OF THIS INDEMNIFICATION. THE PARTIES FURTHER ACKNOWLEDGE
THAT THEY HAVE MUTUALLY NEGOTIATED THIS WAIVER.
The provisions of this section sha11 survive the expiration or termination of this Agreement.
8. INSURANCE: School shall procure and maintain for the duration of this
agreement, insurance against claims for injuries to persons or damage to property arising out of
or in connection with the School's use of the Property pwsuant to this Agreement.
By the effective date of this Agreement, School shall provide a Certificate of Insurance
evidencing:
Commercial General Liabilitv insurance written on an occurrence basis
with limits no less than $1,000,000 combined single limit per occurrence
and $1,000,000 aggregate for personal injury, bodily injury and property
damage. Coverage shall include but not be limited to: blanket contractual;
products/completed operations/broad form property damage; explosion,
collapse and underground (XCU) if applicable; and employer's liability.
Any payment of deductible or self-insured retention shall be the sole responsibility of
School.
3
The City shall be named as an additional insured on the insurance policy, with respect to
the School's use of the Property pursuant to this Agreement, and a copy of the endorsement
naming the City as additional insured shall be attached to the Certificate of Insurance.
School's insurance shall contain a clause stating that coverage shall apply separately to
each insured against whom claim is made or suit is brought, except with respects to the limits of
the insurer's liability.
9. NIISCELLANEOUS PROVISIONS: The following provisions apply to this
Agreement:
(a) Governing law and Venue. T'his Agreement shall be construed and
interpreted pursuant to Washington law and any controversy or interpretation hereof shall be
by the state courts of Washington with venue in Kitsap County, Washington. The captions
throughout this Agreement are for convenience and reference only and the words contained
in them shall not be held to expand, modify, amplify or aid in the interpretation, construction
or meaning of this Agreement. Any reference herein to "days" means consecutive calendar
days. If the last day of any time period or any other specified date occurs on a day when the
recording office of Kitsap County is closed, such time period or date shall be extended to the
next day such recording office is open.
(b) Bindin� Effect. This Agreement shall be binding upon and inure to the
benefit of the parties hereto and their respective successors and assigns.
(c) Entire A egr ement. This Agreement represents the entire agreement between
the parties with respect to the subject matter hereof. All prior negotiarions, agreements,
representations, warranties or other matters of like or any other nature sha11 be of no further
force or effect and aze superseded by this Agreement.
(d) Course of Dealin�. Notwithstanding any course of dealing to the contrary,
this Agreement sha11 not be amended or modified in any manner other than by an instrument
in writing, signed by the parties.
(e) Citv Administration of A�eement. The Director shall administer this
Agreement on behalf of the City. The Director, at his or her sole discretion, shall have the
authority to waive or make minor exceptions or modifications to the terms of this
Agreement in a manner consistent with the intended use and purpose of the Agreement.
(e) Non-Waiver. Waiver of a breach of any provision hereof shall not be
deemed to be a waiver of a breach of any other provision or a subsequent breach of the same
provision.
( fl Notices. Any notice desired or required to be given hereunder shall be in
writing, and shall be deemed received three days after deposit with the U.S. Postal Service,
4
postage fully prepaid, certified mail, return receipt requested, and addressed to the party to
which it is intended at its last known address.
(g) Counterparts. This Agreement may, but need not be, executed in one or
more counterparts, all of which counterparts taken as a whole shall be deemed the entire
Agreement.
(h) Severabilitv. In the event that one or more provisions of this Agreement
shall be determined to be invalid by any court of competent jurisdiction or agency having
jurisdiction thereof, the remainder of the Agreement sha11 remain in full force and effect and
the invalid provisions shall be deemed deleted.
IN WITNESS WHEREOF the parties hereto have caused this Agreement to be executed as of
the day and yeaz first above written.
CITY OF BREMERTON CORPORATION OF THE CATHOLIC
ARCHBISHOP OF SEATTLE sole dba as
OUR LADY STAR OF THE SEA,
BY: BY:
Mayor Its
DATE: DATE:
Approved as to form:
City Attorney
R:U.,egalU.egalContracts�Parks\Star of the Sea Park Use Agreement-Kiwanis Pazk.doc
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Kiwanis Park Improvements
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CITY COUNCIL 345 6� Street, Suite 600, Bremerton, WA 98337 ❑ Phone (360) 473-5280
OCTOBER 20, 2010
CITY COUNCIL MEETING AGENDA
1. BRIEFING: 5:00 — 5:30 P.M. in COUNCIL CONFERENCE ROOM 603
�
A. General Council Business
2. CALL TO,ORDER: 5:30 P.M. in FIRST FLOOR CHAMBERS
A. Pledge of Allegiance
B. Invocation
3. MAYOR'S REPORT
4. PUBLIC RECOGNITION
5. CONSENT AGENDA
A. Claims & Check Register
B. Minutes of Meeting — October 6, 2010
C. Minutes of Study Session — October 13, 2010
D. Contract Award to PiTrvEY BowES for Lease of Connect+2000 Mailing System
E. Resolution No. 3123 between the City of Bremerton and South Kitsap Fire & Rescue to
create a Regional Fire Authority Planning Committee pursuant ta RCW 52.26
F. Ordinance No. 5123, amending Bremerton Municipal Code (BMC) Chapter 17.60.070
relating to "Floodplain Management"
G. Resolution No. 3124, providing for certain terms and covenants relating to Limited Tax
General Obligation (LTGO) Bonds to provide funds with which to pay for portion of
Constructing the Park Avenue Plaza Project — Updated information will be provided
during the Brie�ng on October 20, 2010...
6. GENERAL BUSINESS
A. Agreement with Our Lady Star of the Sea School for Non-Exclusive weekday use of
Kiwanis Park
B. Ordinance No. 5124, providing for the Issuance and Sate of Unlimited Tax General
Obligation (UTGO) Bonds to advance refund a pa of the City's outstanding UTGO
Bonds, 2002 and establishing the Terms and Covenants of the Bonds — Updated
information will be provided during the Brie�ng on October 20, 2010...
7. COUNCIL MEMBER REPORTS
8. AQJOURPIMENT OF C�COUNCIL BUSINESS MEETING .
� Americans with Disabilities Act (ADA) accommodations provided upon request. Those requiring special accommodations
should contact the City Clerk's O�ce at (360) 473-5323 by noon on the Monday preceding the Council meeting.
DATE SUBMITTED: 10/OS/2010
AGENDA BILL
CITY OF BREMERTON
CITY COUNCIL
.......................................................................................�
SUBJECT: Ordinance No.S� 2� providing Committee Meeting Date: October 13, 2010
for the Issuance and Sale of Unlimited Tax COUNCIL MEETING Date: October 20, 2010
General Obligation Bonds to advance refund Department: Finance
a portion of the City's outstanding UTGO Presenter: Cathy Johnson
Bonds, 2002 and Establishing the Terms and Phone: 473-5296
Covenants of the bonds..
SUMMARY: On December, 3, 2002 the City issued $12,979,000 par value Unlimited tax General
Obligation Bonds, 2002 for the purpose of providing the funds with which to acquire equipment and
facilities for police, fire and municipal court. There are currently $9,315,000 of bonds maturing in
2013 through 2027 that can be redeemed on December 1, 2012, prior to their maturity. It has been
determined that the bonds can be refunded by the issuance and sale of unlimited tax general obligation
refunding bonds so that a substantial savings will be recognized over the life of the refunded bonds.
ATTACHMENT5: Ordinance No. 5� 2�'
FISCAL IMPACTS (Include Budgeted Amount): A net present value of approximately $600,000
will be recognized over the life of the bonds. This equates to an annual savings of $45,000 through a
reduction of the property tax levied for repayment of this debt. --- � �
APPROVALS: �/►�If�
DEPARTMENT DIRECTOR: h�����
CITY ATTORNEY: _ V
FINANCE DIRECTOR: �� ( l ��
MAYOR: ��`�" '
�
� h D�f �
COMMITTEE CHAIR � - -
COUNCIL PRESIDENT: � CONSENT AGENDA ❑
GENERAL BUSINESS�
PUBLIC HEARING ❑
RECOMMENDED MOTION: Move to pass Ordinance No.,�iZ 4 providing for the issuance and
sale of Unlimited Tax General Obligation Bonds to advance refund a portion of the City's outstanding
UTGO Bonds, 2002 and establishing the terms and covenants of the bonds.
COUNCIL ACTION: ❑ Approve ❑ Deny ❑ Table ❑ Continue ❑ No Action
f;
� CITY OF BREMERTON, WASHINGTON
ORDINANCE NO. 5124
AN ORDINANCE of the City of Bremerton, Washington, relating to
contracting indebtedness; providing for the issuance and sale of $9,920,000 par
value of Unlimited T� General Obligation Refunding Bonds, 2010, of the City to
provide funds with which to pay the cost of advance refunding the callable
portion of the City's outstanding Unlimited T� General Obligation Bonds, 2002; �
and fixing the terms and covenants of the bonds.
Passed October 20, 2010
This document prepared by:
Foster Pepper PLLC
1111 Third Avenue, Suite 3400
- Seattle, Washington 98101
(206) 447-4400
51095615 4
,
TABLE OF CONTENTS _
Pa�e
Section Definitions ................................................................................................................2
Section 2. Description of Bonds ...............................................................................................4
Section 3. Registration and Transfer of Bonds .........................................................................4 �
Section Payment of Bonds ....................................................................................................6
Section 5. Redemption Provisions and Open Market Purchase of Bonds ................................6
Section 6. Notice of Redemption ..............................................................................................7
Section 7. Failure to Redeem Bonds ......................................................:..................................8
Section Pledge of Taxes ........................................................................................................8
Section 9. Form and Execution of Bonds .................................................................................8
Section Bond Registrar .........................................................................................................9
Section 11. Refunding of the Refunded Bonds .........................................................................10
Section 12. Call for Redemption of the Refunded Bonds .........................................................13
Section 13. The City's Findings with Respect to Refunding ....................................................13
Section 14. Preservation of Ta�c Exemption for Interest on Bonds ...........................................13
Section 15. Designation of Bonds as "Qualified Tax Exempt Obligations." ...........................14 \
Section 16. Refunding or Defeasance of the Bonds .................................................................14
Section 17. Bond Fund and Deposit of Bond Proceeds ............................................................15
Section 18. Approval of Bond Purchase Contract .....................:..............................................15
Section 19. Preliminary Official Statement Deemed Final .......................................................16
Section 20. Undertaking to Provide Continuing Disclosure .....................................................16
Section 21. General Authorization .............................••-•-•.........................................................19
Section 22. Effective Date of Ordinance ..................................................................................19
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51095615 4
CITY OF BREMERTON, WASHINGTON
ORDINANCE NO. 5124
` AN ORDINANCE of the City of Bremerton, Washington, relating to
contracting indebtedness; providing for the issuance and sale of $9,920,000 par
value of Unlimited T� General Obligation Refunding Bonds, 2010, of the City to
provide funds with which to pay the cost of advance refunding the callable
portion of the City's outstanding Unlimited T� General Obligation Bonds, 2002;
and fixing the terms and covenants of the bonds.
WHEREAS, pursuant to Ordinance No. 4831, adopted on November 20, 2002, and the
results of a special election held within the City of Bremerton, Washington (the "City") on
September 17, 2002, the City heretofore issued its $12,979,000 par value Unlimited Tax General
Obligation Bonds, 2002 (the "2002 Bonds") for the purpose of providing the funds with which to
acquire additional police vehicles, fire trucks, apparatus and equipment, acquisition of land and
construction, remodeling and equipping new fire, police and court facilities, and by that
ordinance reserved the right to redeem the 2002 Bonds maturing on and after December 1, 2013
prior to their maturity on December 1, 2012, at a price of par, plus accrued interest to the date
fixed for redemption; and �
WHEREAS, there are presently outstanding $9,315,000 par value of 2002 Bonds
maturing on December 1 of each of the years 2013 through 2027, inclusive, and bearing various
interest rates from 4.25% to 5.05% (the "Refunded Bonds"); and
WHEREAS, after due consideration, it appears to the City Council that the Refunded
Bonds may be refunded by the issuance and sale of the unlimited tax general obligation
refunding bonds authorized herein (the "Bonds") so that a substantial savings will be effected by
the difference between the principal and interest cost over the life of the Bonds and the principal
and interest cost over the life of the Refunded Bonds but for such refunding, which refunding
will be effected by carrying out the Refunding Plan (as hereinafter defined); and
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510956154
WHEREAS, to effect that refunding in the manner that will be most advantageous to the
City it is found necessary and advisable that certain Acquired Obligations (hereinafter defined)
bearing interest and maturing at such time or times as necessary to accomplish the refunding as
aforesaid be purchased out of a portion of the proceeds of the Bonds; and
WHEREAS, the City Council deems it to be in the best interests of the City to issue and
sell the Bonds to pay part of carrying out the Refunding Plan and the costs of issuance and sale
, of the Bonds; and � �
WHEREAS, D.A. Davidson & Co. of Seattle, Washington (the "Purchaser"), has offered
to purchase the Bonds on the terms and conditions set forth in this ordinance; NOW,
THEREFORE,
THE CITY COUNCIL OF THE CITY OF BREMERTON, WASHINGTON, DO
ORDAIN as follows:
Section 1 Definitions
"Acquired Obligations" means those United States Treasury Certificates of Indebtedness,
Notes, and Bonds — State and Local Government Series and other direct, noncallable obligations
of the United Sta.tes of America purchased to accomplish the refunding of the Refunded Bonds
as authorized by this ordinance.
"Bond Fund" means the Unlimited Ta�c General Obligation Refunding Bond Fund, 2010,
created by this ordinance for the payment of the Bonds.
�"Bond Register" means the books or records maintained by the Bond Registrar
containing the name and mailing address of the owner of each Bond and the principal amount
and number of Bonds held by each owner.
"Bond Registrar" means the Fiscal Agent. .
"Bonds" means the $9,920;000 par value Unlimited Ta�c General Obligation Refunding
,.
Bonds, 2010, of the City issued pursuant to and for the purposes provided in this ordinance.
"City" means the City of Bremerton, Washington, a municipal corporation duly
organized and existing under and by virtue of the laws of the state of Washington.
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51095615 4
"Code" means the United States Internal Revenue Code of 1986, as amended, and
applicable rules and regulations promulgated thereunder.
"DTC" means The Depository Trust Company, New York, New York.
"Fiscal Agent" means the fiscal agent of the State of Washington, as the same may be
designated by the State from time to time. -
"Letter of Representations" means the Blanket Issuer Le'tter of Representations dated
November 19, 1997, between the City and DTC, as it may be amended from time to time.
"MSRB" means the Municipal Securities Rulemaking Board.
"Refunded Bonds" means the City's outstanding Unlimited T� General Obligation
Bonds, 2002 maturing in years 2013 through 2027, inclusive, issued pursuant to Ordinance
No. 4831, the refunding of which has been provided for by this ordinance.
"Refunding Plan" means:
(a) the placement of sufficient proceeds of the Bonds that will acquire the Acquired
Obligations to be deposited, with cash, if necessary, with the Refunding Trustee.
(b) The payment of the principal of and interest on the Refunded Bonds when due up
to and including December 1, 2012, and the call, payment, and redemption on December l, 2012
of all the then-outstanding Refunded Bonds at a price of par, plus accrued interest to the date
fixed for redemption; and
(c) the payment of the costs of issuing the Bonds and the costs of carrying out the
foregoing elements of the Refunding Plan.
"Refunding Trust Agreement" means a Refunding Trust Agreement between the City and
the Refunding Trustee substantially in the form of that which is on file with the City and by this
reference incorporated herein.
"Refunding Trustee" means U.S. Bank National Association of Seattle, Washington,
serving as trustee or escrow agent or any successor trustee or escrow agent.
"SEC" means the United States Securities and Exchange Commission.
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51095615 4
Section 2. Description of Bonds. The bonds shall be called Unlimited Tax General
Obligation Refunding Bonds, 2010 (the "Bonds"); shall be in the aggregate principal amount of
$9,920,000; shall be dated as of the date of their initial delivery; shall be in the denomination of
$5,000 or any integral multiple thereof within a single maturity; shall be numbered separately in
the manner and with any additional designation as the fiscal agent of the State of Washington (as
the same may be designated by the State of Washington from time to time) (the "Bond
Registrar") deems necessary for purposes of identification; shall bear interest (computed on the
basis of a 360 day year of twelve 30 day months) payable semiannually on each June 1 and
December 1, commencing June l, 2011, to the maturity or earlier redemption of the Bonds; and
shall mature in years and amounts and bear interest at the rates per annum as follows:
Maturity Years Interest
(December 1) Amounts Rates
2011 $ 60,000 2.00%
2012 85,000 2.00
2013 530,000 2.00
2014 540,000 2.00
2015 550,000 2.50
2016 570,000 2.50
2017 580,000 3.00
2018 600,000 3.00
� 2019 615,000 3.00
2020 630,000 3.50
2021 655,000 3.75
2022 680,000 4.00 -
2023 710,000 4.00
2024 735,000 4.00
2025 765,000 4.00
2026 795,000 3.50
2027 820,000 4.00
Section 3. Registration and Transfer of Bonds. The Bonds shall be issued only in
registered form as to both principal and interest and shall be recorded on books or records
maintained by the Bond Registrar (the "Bond Register"). The Bond Register shall contain the
name and mailing address of the owner of each Bond and the principal amount and number of
each of the Bonds held by each owner.
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51095615 4
Bonds surrendered to the Bond Registrar may be exchanged for Bonds in any authorized
denomination of an equal aggregate principal amount and of the same interest rate and maturity.
Bonds may be transferred only if endorsed in the manner provided thereon and surrendered to
the Bond Registrar. Any exchange ar transfer shall, be without cost to the owner or transferee.
The Bond Registrar shall not be obligated to exchange or transfe'r any Bond during the 15 days �
preceding any principal payment or redemption date.
The Bonds initially shall be registered in the name of Cede & Co., as the nominee of The
Depository Trust Company, New York, New York ("DTC"). The Bonds so registered shall be
. held in fully immobilized form by DTC as depository in accordance with the provisions of a
Blanket Issuer Letter of Representations between the City and DTC (as it may be amended from
time to time, the "Letter of Representations"). Neither the City nor the Bond Registrar shall have
any responsibility or obligation to DTC participants or the persons for whom they act as
nominees with respect to the Bonds regarding accuracy of any records maintained by DTC or
DTC participants of any amount in respect of principal of or interest on the Bonds, or any notice
which is permitted or required to be given to registered owners hereunder (except such notice as
is required to be given by the Bond Registrar to DTC).
For as long as any Bonds are held in fully immobilized form, DTC, its nominee or its
successor depository shall be deemed to be the registered owner for all purposes hereunder and
all references to registered owners, bondowners, bondholders or the like shall mean DTC or its
nominee and, except for the purpose of the City's undertaking herein to provide continuing
disclosure, shall not mean the owners of any beneficial interests in the Bonds. Registered
ownership of such Bonds, or any portions thereof, may not thereafter be transferred except: (i) to
any successor of DTC or its nominee, if that successor shall be qualified under any applicable
laws to provide the services proposed to be provided by it; (ii) to any substitute depository
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51095615 4
appointed by the City or such substitute depository's successor; or (iii) to any person if the
Bonds are no longer held in immobilized form.
Upon the resignation of DTC or its successor (or any substitute depository or its
successor) from its functions as depository, or a determination by the City that it no longer
wishes to continue the system of book entry transfers through DTC or its successor (or any
substitute depository or its successor), the City may appoint a substitute depository. Any such
substitute depository shall be qualified under any applicable laws to provide the services
proposed to be provided by it.
If (i) DTC or its successor (or substitute depository or its successor) resigns from its
functions as depository, and no substitute depository can be obtained, or (ii) the City determines
' that the Bonds are to be in certificated form, the ownership of Bonds may be transferred to any
person as provided herein and the Bonds no longer shall be held in fully immobilized form.
Section 4. Payment of Bonds. Both principal of and interest on the Bonds shall be
payable in lawful money of the United States of America. Interest on the Bonds shall be paid by
checks or drafts of the Bond Registrar mailed on the interest payment date to the registered
owners at the addresses appearing on the Bond Register on the 15�' day of the month preceding
an interest payment date (the "record date") or, if requested in writing by a registered owner of
$1,000,000 or more in principal amount of Bonds prior to the applicable record date, by wire
transfer on the interest payment date. Principal of the Bonds shall be payable upon presentation
and surrender of the Bonds by the registered owners to the Bond Registrar. Notwithstanding the
,
foregoing, for as long as the Bonds are registered in the name of DTC or its nominee, payment of
principal of and interest on the Bonds shall be made in the manner set forth in the Letter of
Representations.
Section 5. Redemption Provisions and Open Market Purchase of Bonds. Bonds
maturing in the years 2011 through 2020, inclusive, shall be issued without the right or option of
the City to redeem those Bonds prior to their stated maturity dates. The City reserves the right
and option to redeem the Bonds maturing on or after December l, 2021, prior to their stated
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5]0956154 '
maturity dates at any time on or December l, 2020, as a whole or in part (within one or more
maturities selected by the City and randomly within a maturity in such manner as the Bond
Registrar shall determine), at par plus accrued interest to the date fixed for redemption
Portions of the principal amount of any Bond, in installments of $5,000 or any integral
multiple thereof, may be redeemed. If less than all of the principal amount of any Bond is
redeemed, upon surrender of that Bond to the Bond Registrar, there shall be issued to the
registered owner, without charge therefor, a new Bond (or Bonds, at the option of the registered
owner) of the same maturity and interest rate in any of the denominations authorized by this
ordinance in the aggregate principal amount remaining unredeemed.
Notwithstanding the foregoing, for as long as the Bonds are registered in the name of
DTC or its nominee, selection of Bonds for redemption shall be in accordance with the Letter of
Representations.
The City further reserves the right and option to purchase any or all of the Bonds in the
open market at any time at a price not in excess of par plus accrued interest to the date of
purchase.
All Bonds purchased or redeemed under this section shall be canceled.
Section 6. Notice of Redem�tion. While the Bonds are held by DTC in book-entry
only form, any notice of redemption shall be given at the time, to the entity and in the manner
required by DTC in accordance with the Letter of Representations, and the Bond Registrar shall
not be required to give any other notice of redemption. If the Bonds cease to be in book-entry
only form, the City shall cause notice of any intended redemption of Bonds to be given by the
Bond Registrar not less than 30 nor more than 60 days prior to the date fixed for redemption by
first-class mail, postage prepaid, to the registered owner of any Bond to be redeemed at the
address appearing on the Bond Register at the time the Bond Registrar prepares the notice, and
the requirements of this sentence shall be deemed to have been fulfilled when notice has been
mailed as so provided, whether or not it is actually received by the owner of any Bond.
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In the case of an optional redemption, the notice may state that the City retains the right
to rescind the redemption notice and the related optional redemption of Bonds by giving a notice
of rescission to the affected registered owners at any time prior to the scheduled optional
redemption date. Any notice of optional redemption that is so rescinded shall be of no effect,
and the Bonds for which the notice of optional redemption has been rescinded shall remain
outstanding.
Interest on Bonds called for redemption shall cease to accrue on the date fixed for �
redemption unless the Bond or Bonds called are not redeemed when presented pursuant to the
call. In addition, the redemption notice shall be mailed within the same period, postage prepaid,
to the MSRB, to any nationally recognized rating agency which at the time maintains a rating on
the Bonds at the request of the City, and to such other persons and with such additional
information as the City's Director of Financial Services shall determine, but these additional
mailings shall not be a condition precedent to the redemption of Bonds.
Section 7. Failure to Redeem Bonds. If any Bond is not redeemed when properly
presented at its maturity or call date, the City shall be obligated to pay interest on that Bond at
the same rate provided in the Bond from and after its maturity or call date until that Bond, both
principal and interest, is paid in full or until sufficient money for its payment in full is on deposit
in the bond redemption fund hereinafter created and the Bond has been called for payment by
giving notice of that call to the registered owner of each of those unpaid Bonds.
Section 8. Pled�e of Taxes. For as long as any of the Bonds are outstanding, the City
irrevocably pledges to levy taxes annually without limitation as to rate or amount on all of the
taxable property within the City in an amount sufficient, together with other money legally
available and to be used therefor, to pay when due the principal of and interest on the Bonds, and
the full faith, credit and resources of the City are pledged irrevocably for the annual levy and
collection of those taxes and the prompt payment of that principal and interest.
Section 9. Form and Execution of Bonds. The Bonds shall be prepared in a form
consistent with the provisions of this ordinance and state law and shall be signed by the Mayor
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51095615 4 •
and City Clerk, either or both of whose signatures may be manual or in facsimile, and the seal of
the City or a facsimile reproduction thereof shall be impressed or printed thereon.
Only Bonds bearing a Certificate of Authentication in the following form, manually
signed by the Bond Registrar, shall be valid or obligatory for any purpose or entitled to the
benefits of this ordinance:
CERTIFICATE OF AUTHENTICATION
This Bond is one of the fully registered City of Bremerton, Washington,
Unlimited Tax General Obligation Refunding Bonds, 2010, described in the Bond
Ordinance.
WASHINGTON STATE FISCAL AGENCY
Bond Registrar
� By
Authorized Signer
The authorized signing of a Certificate of Authentication shall be conclusive evidence that the
Bond so authenticated has been duly executed, authenticated and delivered and is entitled to the
benefits of this ordinance.
If any officer whose facsimile signature appears on the Bonds ceases to be an officer of
the City authorized to sign bonds before the Bonds bearing his or her facsimile signature are
authenticated or delivered by the Bond Registrar or issued by the City, those Bonds nevertheless
may be authenticated, issued and delivered and, when authenticated, issued and delivered, shall
be as binding on the City as though that person had continued to be an officer of the City
authorized to sign bonds. Any Bond also may be signed on behalf of the City by any person �
who, on the actual date of signing of the Bond, is an officer of the City authorized to sign bonds, .
although he or she did not hold the required office on the date of issuance of the Bonds.
Section 10. Bond Re i�. The Bond Registrar shall keep, or cause to be kept,
sufficient books for the registration and transfer of the Bonds, which shall be open to inspection
by the City at all times. The Bond Registrar is authorized, on behalf of the City, to authenticate
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and deliver Bonds transferred or exchanged in accordance with the provisions of the Bonds and
this ordinance, to serve as the City's paying agent for the Bonds and to carry out all of the Bond
Registrar's powers and duties urider this ordinance.
The Bond Registrar shall be responsible for its representations contained in the Bond
Registrar's Certificate of Authentication on the Bonds. The Bond Registrar may become the
owner of Bonds with the same rights it would have if it were not the Bond Registrar and, to the
extent permitted by law, may act as depository for and permit any of its officers or directors to
act as members of, or in any other capacity with respect to, any committee formed to protect the
rights of Bond owners.
Section 11. Refunding of the Refunded Bonds.
(a) Appointment of Refunding Trustee. U.S. Bank National Association of Seattle,
Washington, is appointed Refunding Trustee.
(b) Use of Bond Proceeds; Acquisition of Acquired Obli atg ions. All of the proceeds
of the sale of the Bonds, shall be deposited immediately upon the receipt thereof with the
Refunding Trustee and used to discharge the obligations of the City relating to the Refunded
Bonds under Ordinance No. 4831 by providing for the payment of the amounts required to be
paid by the Refunding Plan. To the extent practicable, such obligations shall be discharged fully
by the Refunding Trustee's simultaneous purchase of the Acquired Obligations, bearing such
�
interest and maturing as to principal and interest in such amounts and at such times so as to
provide, together with a beginning cash balance, if necessary, for the payment of the amount
required to be paid by the Refunding Plan. The Acquired Obligations are listed and more
particulazly described in E�ibit B attached to the Refunding Trust Agreement between the City
and the Refunding Trustee, but are subject to substitution as set forth below. Any Bond proceeds ,
or other money deposited with the Refunding Trustee not needed to purchase the Acquired
Obligations and provide a beginning cash balance, if any, and pay the costs of issuance of the
_ Bonds shall be returned to the City at the time of delivery of the Bonds to the initial purchaser
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51095615 4
.
thereof and deposited in the Bond Fund to pay interest on the Bonds on the first interest payment
date.
(c) � Substitution of Acquired Obli ations. Prior to the purchase of any Acquired
Obligations by the Refunding Trustee, the City reserves the right to substitute other direct,
noncallable obligations of the United States of America ("Substitute Obligations") for any of the
Acquired Obligations and to use any savings created thereby for any lawful City purpose if, (i) in
the opinion of Foster Pepper PLLC, the City's bond counsel, the interest on the Bonds and the
Refunded Bonds will remain excluded from gross income for federal income tax purposes under
Sections 103, 148, and 149(d) of the Code, and (ii) such substitution shall not impair the timely
payment of the amounts required to be paid by the Refunding Plan, as verified by a nationally
recognized independent certified public accounting firm.
After the purchase of the Acquired Obligations by the Refunding Trustee, the City
reserves the right to substitute therefor cash or Substitute Obligations subject to the conditions
that such money or securities held by the Refunding Trustee shall be sufficient to carry out the
Refunding Plan, that such substitution will not cause the Bonds or the Refunded Bonds to be
arbitrage bonds within the meaning of Section 148 of the Code and regulations thereunder in
effect on the date of such substitution and applicable to obligations issued on the issue dates of
the Bonds and the Refunded Bonds, as applicable, and that the City obtain, at its expense: (1) a
verification by a nationally recognized independent certified public accounting firm acceptable _
to the Refunding Trustee confirming that the payments of principal of and interest on the
substitute securities, if paid when due, and any other money held by the Refunding Trustee will
be sufficient to carry out the Refunding Plan; and (2) an opinion from Foster Pepper PLLC, bond
counsel to the City, its successor, or other nationally recognized bond counsel to the City, to the
effect that the disposition and substitution or purchase of such securities, under the statutes,
rules, and regulations then in force and applicable to the Bonds, will not cause the interest on the
Bonds or the Refunded Bonds to be included in gross income for federal income ta.x purposes
and that such disposition and substitution or purchase is in compliance with the statutes and
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regulations applicable to the Bonds. Any surplus money resulting from the sale, transfer, other
disposition, or redemption of the Acquired Obligations and the substitutions therefor shall be
released from the trust estate and transferred to the City to be used for any lawful City purpose.
(d) Administration of Refundin Plan. The Refunding Trustee is authorized and
directed to purchase the Acquired Obligations (or substitute obligations) and to make the
payments required to be made by the Refunding Plan from the Acquired Obligations (or
substitute obligations) and money deposited with the Refunding Trustee pursuant to this
ordinance. All Acquired Obligations (or substitute obligations) and the money deposited with
the Refunding Trustee and any income therefrom shall be held irrevocably, invested and applied
in accordance with the provisions of Ordinance No.4831, this ordinance, chapter 39.53
RCW and other applicable statutes of the State of Washington and the Refunding Trust
Agreement. All necessary and proper fees, compensation, and expenses of the Refunding
Trustee for the Bonds and all other costs incidental to the setting up of the escrow to accomplish
the refunding of the Refunded Bonds and costs related to the issuance and delivery of the Bonds,
including bond printing, verification fees, bond counsel's fees, and other related expenses, shall
be paid out of the proceeds of the Bonds.
(e) Authorization for Refundin� Trust Agreement. To carry out the Refunding Plan
provided for by this ordinance, the Mayor or the Interim Director of Financial Services of the
City is authorized and directed to execute and deliver to the Refunding Trustee a Refunding
, Trust Agreement substantially in the form on file with the City and by this reference made a part
hereof setting forth the duties, obligations and responsibilities of the Refunding Trustee in
� connection with the payment, redemption, and retirement of the Refunded Bonds as provided
herein and stating that the provisions for payment of the fees, compensation, and expenses of
such Refunding Trustee set forth therein are satisfactory to it. Prior to executing the Refunding
Trust Agreement, the Mayor or the Interim Director of Financial Services of the City is
authorized to make such changes therein that do not change the substance and purpose thereof or
that assure that the escrow provided therein and the Bonds are in compliance with the
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requirements of federal law governing the exclusion of interest on the Bonds from gross income
for federal income tax purposes.
Section 12. Call for Redemption of the Refunded Bonds. The City calls for
redemption on December 1, 2012, all of the Refunded Bonds at a price of par plus accrued
interest to the date fixed for redemption. Such call for redemption shall be irrevocable after the
delivery of the Bonds to the initial purchaser thereof. The date on which the Refunded Bonds are ,
herein called for redemption is the first date on which those bonds may be called.
The proper City officials are authorized and directed to give or cause to be given such
notices as required, at the times and in the manner required, pursuant to Ordinance No. 4831 in
order to effect redemption prior to their maturity of the Refunded Bonds. �
Section 13. The City's Findings with Respect to Refunding. The City Council finds
and determines that the issuance and sale of the Bonds at this time will effect a savings to the
City and is in the best interest of the City and its taxpayers and in the public interest. In making
such finding and determination, the City Council has given consideration to the fixed maturities
` of the Bonds and the Refunded Bonds, the costs of issuance �of the Bonds and the known earned
income from the investment of the proceeds of the issuance and sale of the Bonds pending
payment and redemption of the Refunded Bonds. -
The City Council further finds and determines that the money to be deposited with the
Refunding Trustee for the Refunded Bonds in accordance with Section 11 of this ordinance will
; '
discharge and satisfy the obligations of the City under Ordinance No. 4831 with respect to the
Refunded Bonds, and the pledges, charges, trusts, covenants, and agreements of the City therein
made or provided for as to the Refunded Bonds, and that the Refunded Bonds shall no longer be
deemed to be outstanding under such ordinance immediately upon the deposit of such money
with the Refunding Trustee.
Section 14. Preservation of Tax Exemption for Interest on Bonds. The City covenants
that it will take all actions necessary to prevent interest on the Bonds from being included in
gross income for federal income t� purposes, and it will neither take any action nor make or
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permit any use of proceeds of the Bonds or other funds of the City treated as proceeds of the
Bonds at any time during the term of the Bonds, which will cause interest on the Bonds to be
included in gross income for federal income tax purposes. The City also covenants that it will, to
the extent the arbitrage rebate requirement of Section 148 of the Internal Revenue Code of 1986,
as amended (the "Code"), is applicable to the Bonds, take all actions necessary to comply (or to
be treated as having complied) with that requirement in connection with the Bonds, including the
calculation and payment of any penalties that the City has elected to pay as an alternative to
calculating rebatable arbitrage, and the payment of any other penalties if required under
Section 148 of the Code to prevent interest on the Bonds from being included in gross income
for federal income t� purposes.
Section 15. Designation of Bonds as "Qualified Taac Exempt Obli ations." The City
has determined and certifies that (a) the Bonds are not "private activity bonds" within the
meaning of Section 141 of the Code; (b) the reasonably anticipated amount of ta�c exempt
obligations (other than private activity bonds and other obligations not required to be included in
such calculation) which the City and any entity subordinate to the City (including any entity that
the City controls, that derives its authority to issue tax exempt obligations from the City or that
issues tax exempt obligations on behalf of the City) will issue during the calendar year in which
the Bonds are issued will not exceed $30,000,000; and (c) the amount of tax exempt obligations,
including the Bonds, designated by the City as "qualified tax exempt obligations" for the
purposes of Section 265(b)(3) of the Code during the calendar year in which the Bonds are
issued does not exceed $30,000,000. The City designates the Bonds as"qualified tax exempt
obligations" for the purposes of Section 265(b)(3) of the Code.
Section 16. Refunding or Defeasance of the Bonds. The City may issue refunding
bonds pursuant to the laws of the State of Washington or use money available from any other
' lawful source to pay when due the principal of and interest on the Bonds, or any portion thereof
included in a refunding or defeasance plan, and to redeem and retire, refund or defease all such
then-outstanding Bonds (hereinafter collectively called the "defeased Bonds") and to pay the
� -14-
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costs of the refunding or defeasance. If money and/or "government obligations" (as defined in
chapter 39.53 RCW, as now or hereafter amended) maturing at a time or times and bearing
interest in amounts (together with money, if necessary) sufficient to redeem and retire, refund or
defease the defeased Bonds in accordance with their terms are set aside in a special trust fund or
escrow account irrevocably pledged to that redemption, retirement or defeasance of defeased
Bonds (hereinafter called the "trust account"), then all right and interest of the owners of the
defeased Bonds in the covenants of this ordinance and in the funds and accounts obligated to the
payment of the defeased Bonds shall cease and become void. The owners of defeased Bonds
shall have the right to receive payment of the principal of and interest on the defeased Bonds
I from the trust account. The City shall include in the refunding or defeasance plan such
provisions as the City deems necessary for the random selection of any defeased Bonds that
constitute less than all of a particular maturity of the Bonds, for notice of the defeasance to be
given to the owners of the defeased Bonds and to such other persons as the City shall determine,
and for any required replacement of Bond certificates for defeased Bonds. The defeased Bonds
shall be deemed no longer outstanding, and the City may apply any money in any other fund or
account established for the payment or redemption of the defeased Bonds to any lawful purposes
as it shall determine.
If the Bonds are registered in the name of DTC or its nominee, notice of any defeasance
of Bonds shall be given to DTC in the manner prescribed in the Letter of Representations for
notices of redemption of Bonds.
Section 17. Bond Fund and Deposit of Bond Proceeds. There is created and
established in the office of the Interim Director of Financial Services a special fund designated as
,
the Unlimited Tax General Obligation Refunding Bond Fund, 2010 (the "Bond Fund"), for the
purpose of paying principal of and interest on the Bonds. All taxes collected for and allocated to
the payment of the principal of and interest on the Bonds shall be deposited in the Bond Fund.
Section 18. A�proval of Bond Purchase Contract. D.A. Davidson & Co. of Seattle,
Washington, has presented a purchase contract (the "Bond Purchase Contract") to the City
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offering to purchase the Bonds under the terms and conditions provided in �the Bond Purchase
Contract. The City Council finds that entering into the Bond Purchase Contract is in the City's
best interest and therefore accepts the offer contained therein and authorizes its execution by City
officials.
The Bonds will be printed at City expense and will be delivered to the purchaser in
accordance with the Bond Purchase Contract, with the approving legal opinion of Foster Pepper
PLLC, municipal bond counsel of Seattle, Washington, regarding the Bonds.
The proper City officials are authorized and directed to do everything necessary for the
prompt delivery of the Bonds to the purchaser and for the proper application and use of the
proceeds of the sale thereof.
Section 19. Preliminary Official Statement Deemed Final. The City Council has been
provided with copies of a preliminary official statement dated October 13, 2010 (the
"Preliminary Official Statement"), prepared in connection with the sale of the Bonds. For the
sole purpose of the Bond purchaser's compliance with Securities and Exchange Commission
Rule 15c2-12(b)(1), the City "deems final" that Preliminary Official Statement as of its date,
except for the omission of information as to offering prices, interest rates, selling compensation,
aggregate principal amount, principal amount per maturity, maturity dates, options of
redemption, delivery dates, ratings and other terms of the Bonds dependent on such matters.
Section 20. Undertaking to Provide Continuing Disclosure. To meet the requirements
of United States Securities and Exchange Commission ("SEC") Rule 15c2-12(b)(5) (the "Rule"), �
as applicable to a participating underwriter for the Bonds, the City makes the following written
undertaking (the "Undertaking") for the benefit of holders of the Bonds:
(a) Undertaking to Provide Annual Financial Information and Notice of Material
Events. The City undertakes to provide or cause to be provided, either directly or through a
designated agent, to the Municipal Securities Rulemaking Board (the "MSRB"), in an electronic
format as prescribed by the MSRB, accompanied by identifying information as prescribed by the
MSRB:
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➢
(i) . Annual financial information and operating data of the type included in
the final official statement for the Bonds and described in subsection (b) of this section ("annual
financial information");
(ii) Timely notice of the occurrence of any of the following events with
respect to the Bonds, if material: (1) principal and interest payment delinquencies; (2) non-
�
payment related defaults; (3) unscheduled draws on debt service reserves reflecting financial
difficulties; (4) unscheduled draws on credit enhancements reflecting financial difficulties;
(5) substitution of credit or liquidity providers, or their failure to perform; (6) adverse tax
opinions or events affecting the tax-exempt status of the Bonds; (7) modifications to rights of
holders of the Bonds; (8) Bond calls (other than scheduled mandatory redemptions of Term
Bonds); (9) defeasances; (10) release, substitution, or sale of property securing repayment of the
Bonds; and (11) rating changes; and
(iii) Timely notice of a failure by the City to provide required annual financial
information on or before the date specified in subsection (b) of this section.
(b) Type of Annual Financial Information Undertaken to be Provided. The annual
financial information that the City undertakes to provide in subsection (a) of this section:
. (i) Shall consist of (1) annual financial statements prepared (except as noted
in the financial statements) in accordance with applicable generally accepted accounting
principles promulgated by the Government Accounting Standards Board ("GASB"), as such
principles may be changed from time to time, which statements shall not be audited, except,
however, that if and when audited financial statements are otherwise prepared and available to
the City they will be provided; (2) authorized, issued and outstanding balance of general
obligation bonds; (3) assessed valuation for the fiscal year; and (4) regular property tax levy rate
and regular property tax levy rate limit for the fiscal year;
(ii) Shall be provided not later than the last day of the ninth month after the
end of each fiscal year of the City (currently, a fiscal year ending December 31), as such fiscal
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year may be changed as required or permitted by Sta.te law, commencing with the City's fiscal
year ending December 31, 2010; and
(iii) May be provided in a single or multiple documents, and may be
incorporated by specific reference to documents available to the public on the Internet website of
the MSRB or filed with the SEC.
(c) Amendment of Undertaking. The Undertaking is subject to amendment after the
primary offering of the Bonds without the consent of any holder of any Bond, or of any broker,
dealer, municipal securities dealer, participating underwriter, rating agency or the MSRB, under
the circumstances and in the manner permitted by the Rule. The City will give notice to the
MSRB of the substance (or provide a copy) of any amendment to the Undertaking and a brief
statement of the reasons for the amendment. If the amendment changes the type of annual
�inancial information to be provided, the annual financial information , containing the amended
financial information will include a narrative explanation of the effect of that change on the type
of information to be provided.
(d) Beneficiaries. The Undertaking evidenced by this section shall inure to the
benefit of the City and any holder of Bonds, and shall not inure to the benefit of or create any
rights in any other person.
(e) Termination of Undertaking. The City's obligations under this Undertaking shall
terminate upon the legal defeasance of all of the Bonds. In addition, the City's obligations under '
this Undertaking shall terminate if those provisions of the Rule which require the City to comply
with this Undertaking become legally inapplicable in respect of the Bonds for any reason, as
confirmed by an opinion of nationally recognized bond counsel or other counsel familiar with
federal securities laws delivered to the City, and the City provides timely notice of such
termination to the MSRB.
(� Remedy for Failure to Comply with Undertaking. As soon as practicable after the
City learns of any failure to comply with the Undertaking, the City will proceed with due
diligence to cause such noncompliance to be corrected. No failure by the City or other obligated
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person to comply with the Undertaking shall constitute a default in respect of the Bonds. The
sole remedy of any holder of a Bond shall be to take such actions as that holder deems necessary,
including seeking an order of specific performance from an appropriate court, to compel the City
or other obligated person to comply with the Undertaking.
(g) Designation of Official Responsible to Administer Undertaking. The Director of
Financial Services of the City (or such other officer of the City who may in the future perform
the duties of that office) or his or her designee is authorized and directed in his or her discretion
to take such further actions as may be necessary, appropriate or convenient to carry out the
Undertaking of the City in respect of the Bonds set forth in this section and in accordance with
the Rule.
Section 21. General Authorization. The Mayor and Interim Director of Financial
Services and each of the other appropriate officers of the City are each authorized and directed to
do everything as in their judgment may be necessary, appropriate, or desirable in order to carry
out the terms and provisions of, and complete the transactions contemplated by, this ordinance.
Section 22 . Effective Date of Ordinance This ordinance shall take effect and be in
force from and after its passage and five days following its publication as required by law.
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PASSED by the City Council this 20�' day of October, 2010.
NICK WOFFORD, Council President
Approved this 20`" day of October, 2010.
PATTY LENT, Mayor
ATTEST: APPROVED AS TO FORM:
CAROL ETGEN, City Clerk Foster Pepper PLLC, as Bond Council
PUBLISHED the day of , 2010
EFFECTIVE the day of , 2010
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CERTIFICATION
I, the undersigned, City Clerk of the City of Bremerton, Washington (the "City"), hereby
certify as follows: _
1. The attached copy of Ordinance No. 5124 (the "Ordinance") is a full, true and
correct copy of an ordinance duly passed at a regular meeting of the City Council of the City
held at the regular meeting place thereof on October 20, 2010, as that ordinance appears on the
minute book of the City; and the Ordinance will be in full force and effect five days after
publication in the City's official newspaper; and
2. A quorum of the members of the City Council was present throughout the
meeting and a majority of those members present voted in the proper manner for the passage of
the Ordinance.
IN WITNESS WHEREOF, I have hereunto set my hand this day of October, 2010.
CITY OF BREMERTON, WASHINGTON
Carol Etgen, City Clerk
51095615 4 ,
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CITY OF BREMERTON
2 ��"'' 68 —" $9,920,000 UNLIMITED TAX GENERAL
Urcl%hah� �lJ�, 5/ay OBLIGATION REFUNDING BONDS, 2010
�� �� ._ $2,220,000 LIMITED TAX GENERAL
OBLIGATION BONDS, 2010 �TAXABLE BUILD
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FINAL RESULTS
October 20, 2010
D A David Trageser Suzanne Eide
Davidson Senior Vice President Vice President
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Mark Froio
Vice President
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♦
' � City of Bremerton
� Bond Sale Plan
1) Confirm Solid Investment Grade Rating from Moody's
• Received confirmation of A1 LTGO and Aa3 UTGO underlying ratings from
Moody's.
2) Refunding Savings target
• Refunded 2002 callable UTGO Bonds
• 3.22% True Interest Cost
• Achieved a net present value savings of 6.80% (4.00% was minimum goal)
of the refunded bonds
o $808,765 Net Savings
o $633,837 Net PV Savings
3) Minimize Borrowing Costs on New Money Bonds
• Utilized Bank of America Bonds
• 3.49% True Interest Cost (Net of federal credit)
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City of Bremerton
Sources & Uses
Dated Date 11/2/2010
Delivery Date 11/2/2010
es: 2010UT 2010LT8 Total
eond Proceeds:
Par Amount 9,920,000.00 2,220,000.00 12,140,000.00
Net Premium 357,267.25 357,267.25
10,277,267.25 2,220,000.00 12,497,267.25
Other Sources of Funds:
Bond Fund Contribution 200,000.00 200,000.00
10,477,267.25 2,220,000.00 12,697,267.25
Uses: 2010UT 2010LTB Total
Project Fund Deposits:
Project Fund 2,200,000.00 2,200,000.00
Refunding Escrow Deposits:
Cash Deposit 0.37 0.37
SLGS Purchases 10,387,010.00 10,387,010.00
10,387,010.37 10,387,010.37
Delivery Date Expenses:
Underwriter's Discount 65,472.00 14,652.00 80,124.00
Bond Counsel Fee 14,385.63 3,219.37 17,605.00
Moody's Rating Fee 6,291.93 1,408.07 7,700.00
Escrow Verification 2,500.00 2,500.00
Escrow Agent 1,100.00 1,100.00
89, 749.56 19, 2 79.44 109, 029.00
Other Uses of Funds:
Additional Proceeds 507.32 720.56 1,227.88
10,477,267.25 2,220,000.00 12,697,267.25
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City of Bremerton
Debt Service— UTGO Bonds
Period
En Princip Coupon Interest Debt Service Annual Debt Service
6/1/2011 190,995.52 190,995.52
12/1/2011 60,000 2.000% 164,493.75 224,493.75 415,489.27
6/1/2012 163,893.75 163,893.75
12/1/2012 85,000 2.0009'0 163,893.75 248,893.75 412,787.50
6/1/2013 163,043.75 163,043.75
12/1/2013 530,000 2.0009� 163,043.75 693,043.75 856,087.50
6/1/2014 157,743.75 157,743.75
12/1/2014 540,000 2.000% 157,743.75 697,743.75 855,487.50
6/1/2015 152,343.75 152,343.75
12/1/2015 550,000 2.500% 152,343.75 702,343.75 854,687.50
6/1/2016 145,468.75 145,468.75
12/1/2016 570,000 2.500% 145,468.75 715,468.75 860,937.50
6/1/2017 138,343.75 138,343.75
12/1/2017 580,000 3.0009'0 138,343.75 718,343.75 856,687.50
6/1/2018 129,643.75 129,643.75
12/1/2018 600,000 3.000% 129,643.75 729,643.75 859,287.50
6/1/2019 120,643.75 120,643.75
12/1/2019 615,000 3.000% 120,643.75 735,643.75 856,287.50
6/1/2020 111,418.75 111,418.75
12/1/2020 630,000 3.500% 111,418.75 741,418.75 852,837.50 �
6/1/2021 100,393.75 100,393.75
12/1/2021 655,000 3.750% 100,393.75 755,393.75 855,787.50
6/1/2022 88,112.50 88,112.50
12/1/2022 680,000 4.000% 88,112.50 768,112.50 856,225.00
6/1/2023 74,512.50 74,512.50
12/1/2023 710,000 4.000% 74,512.50 784,512.50 859,025.00
6/1/2024 60,312.50 60,312.50
12/1/2024 735,000 4.000% 60,312.50 795,312.50 855,625.00
6/1/2025 45,612.50 45,612.50
12/1/2025 765,000 4.000% 45,612.50 810,612.50 856,225.00
6/1/2026 30,312.50 30,312.50
12/1/2026 795,000 3.500% 30,312.50 825,312.50 855,625.00
6/1/2027 16,400.00 16,400.00
12/1/2027 820,000 4.000% 16,400.00 836,400.00 852,800.00
9,920,000 3,751,889.27 13,671,889.27 13,671,889.27
TIC: 3.22%
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City of Bremerton
Debt Service— LTGO Bonds
Annual Net Debt
Date Principal Interest Total Debt Service BAB Adjustment Net Debt Service Se
6/1/2011 62,490.27 62,490.27 -21,871.59 40,618.68
12/1/2011 53,819.38 53,81938 -18,836.78 34,982.60 75,601.28
6/1/2012 53,819.38 53,81938 -18,836.78 34,982.60
12/1/2012 53,819.38 53,819.38 -18,836.78 34,982.60 69,965.20
6/1/2013 53,819.38 53,819.38 -18,836.78 34,982.60
12/1/2013 100,000 53,81938 153,819.38 -18,836.78 134,982.60 169,965.20
6/1/2014 52,863.88 52,863.88 -18,502.36 34,361.52
12/1/2014 100,000 52,863.88 152,863.88 -18,502.36 134,361.52 168,723.04
6/1/2015 51,696.88 51,696.88 -18,093.91 33,602.97
12/1/2015 100,000 51,696.88 151,696.88 -18,093.91 133,602.97 167,205.94
6/1/2016 49,746.88 49,746.88 -17,411.41 32,335.47
12/1/2016 105,000 49,746.88 154,746.88 -17,411.41 137,335.47 169,670.94
6/1/2017 47,699.38 47,69938 -16,694.78 31,OOA.60
12/1/2017 105,000 47,699.38 152,69938 -16,694.78 136,004.60 167,009.20
6/1/2018 45,651.88 45,651.88 -15,978.16 29,673.72
12/1/2018 110,000 45,651.88 155,651.88 -15,978.16 139,673.72 169,347.44 °
6/1/2019 43,506.88 43,506.88 -15,227.41 28,279.47
12/1/2019 110,000 43,506.88 153,506.88 -15,227.41 138,279.47 166,558.94
6/1/2020 41,361.88 41,361.88 -14,476.66 26,885.22
12/1/2020 115,000 41,361.88 156,361.88 -14,476.66 141,885.22 168,770.44
6/1/2021 39,11938 39,119.38 -13,691.78 25,427.60
12/1/2021 115,000 39,119.38 154,119.38 -13,691.78 140,427.60 165,855.20
6/1/2022 36,089.70 36,089.70 -12,631.40 23,45830
12/1/2022 120,000 36,089.70 156,089.70 -12,631.40 143,45830 166,916.60
6/1/2023 32,92830 32,928.30 -11,524.91 21,40339
12/1/2023 125,000 32,928.30 157,928.30 -11,524.91 146,40339 167,806.78
6/1/2024 29,635.18 29,635.18 -10,372.31 19,262.87
12/1/2024 130,000 29,635.18 159,635.18 -10,372.31 149,262.87 168,525.74
6/1/2025 26,210.33 26,210.33 -9,173.62 17,036.71
12/1/2025 135,000 26,210.33 161,210.33 -9,173.62 152,036.71 169,073.42
6/1/2026 22,653.75 22,653.75 -7,928.81 14,724.94
12/1/2026 140,000 22,653.75 162,653.75 -7,928.81 154,724.94 169,449.88
6/1/2027 18,425.05 18,425.05 -6,448.77 11,976.28
12j1j2027 145,000 18,425.05 163,425.05 -6,448.77 156,976.28 168,952.56
6/1/2028 14,04533 14,045.33 -4,915.87 9,129.46
12/1/2028 150,000 14,04533 164,04533 -4,915.87 159,129.46 168,258.92
6/1/2029 9,514.58 9,514.58 -3,330.10 6,184.48
12/1/2029 155,000 9,514.58 164,514.58 -3,330.10 161,184.48 167,368.96
6/1/2030 4,832.80 4,832.80 -1,691.48 3,14132
12/1/2030 160,000 4,832.80 164,832.80 -1,691.48 163,14132 166,282.64
2,220,000 1,463,551.29 3,683,551.29 -512,242.97 3,171,308.32 3,171,308.32
TIC: 3.49%
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MoonY's
INVESTORS SERVICE
New Issue: MOODY'S ASSIGNS Aa3 RATING TO BREMERTON CtTY (W� $10.0 MM UNLIMITED
TAX G.O. REFUNDING BONDS, 2010AAND A1 RATING TO $2.2 MM LIMtTED TAX G.O. BONDS,
2010B
Globai Credit Research -19 Oct 2010
Aa3 UTGO RATING AFFIRMED ON $11.2 MM LV OBLIGATIONS; A1 LTGO RATD�IG AFFECTS $18.8 MM N PAR17Y DEBT, LVCLUDING
CURRENT OFFERIIVGS
Municipality
WA
Moalys Rating
ISSUE R/�TING
Unlimited Tax General Obligation Refunding Bonds, 2010A(Tax-Exempt) Aa3
Sale Amouth $9,985,000
F�eded Sale Date 10/20/10
Rating Descriptlon General Obligation
Limited Tax General Obligation Refunding Bonds, 2010B (Taxable Build America Bonds - Direct Payment) A1
Sale Mnurrt $2,225,000
F�ected Sale Date 10/20/10
Rating Description General Obligation Limited Tax
Opinion
NEW YORK, Oct 19, 2010 - Nbodys Investors Service has assigned an Aa3 rating to the City of Bremerton, Washington, Unlimited Tax General
Obligation Refunding Bonds, 2010Ain the approximate amount of $10.0 million; this offering is secured by the full faith, credit and resources of
the city to ircevocably make annual levies of ad valorem taxes without limitation. Bond proceeds will refund certain maturities of the cit�ls
Unlimited Tax General Obligation Bonds, 2002. At this dme, Wbodys has affirmed the Aa3 unlimited tax general obligation rating UTGO debt
totaling $11,215,000)
ConcurrenUy, Nbodys has assigned an A1 rating to the citys Limited Tax General Obligation Bonds, 2010B in the approximate amount of $2.2
million; this offering is secured by the full faith and cred'R of the city within the constitutional and statutory limitations of non-voter approved debt.
Bond proceeds will finance the construction of parking facilities. At this time, Moodys affirms the A1 limited tax general obligation rating (LTGO
debt totaling $20.9 million).
RATWG RATIONALE
The ratings reflect the city's moderately sized tax base, slightly below average wealth levels, satisfactory financial operations, and manageable
debt profile.
TAX BASE DECLINES; NAVY PRESENCE DOMINATES LOCAL ECONOMY
Due to its location on the Puget Sound, the city has a sizeable and stable military presence. The city's largest employer is the United States
Department of the Navy, which employs over 10,000 individuals. From collection year 2003 to 2008, taxable values increased by 14.5% on an
average annual basis, with above average increases of 20.3% (2006), 21.1 %(2007) and 15.7% (2008). In the two previous tax collection years,
the effects of the national recession and housing downtum were realized: taxable values declined by 1.0°/a (2009) and 6.0°/a (2010) to $2.9 billion.
Officials anticipate additional declines of up to 2% for collection year 2011 and e�cpect stabilization by 2012.
2000 census per capita and median family weaRh levels were 73% ($16,724) and 68°/a ($36,358) of state levels, respectively. 2010 full value per
capita of $80,118 is below the median for Washington cities. The most recentAugust 2010 unemployment rate of 8.9% is slightly greater than
the state's 8.8% rate.
WEAK FINANCIAL OPERATIONS BOLSTERED BY COMINGENCY RESERVES
General fund balances shrunk in 2008 and 2009, compared to fiscal years 2004 through 2007, during which reserve levels averaged 12.1 % of
general fund revenues ($3.6 million). In fiscal 2008 and unaudited fiscal 2009, reserves fell to 4.1 %($1.3 million) and 6.3% ($1.9 million),
respectively. These levels are well-below the citys reserve policy that encourages ending cash and investrnent general fund balances to be no
less than 8.5% of planned annual operating expenses. Management attributes the decline to planned draw downs in generai fund balance, which
were ill-timed with the unforeseen tax revenue declines associated with the national recession and housing downtum. Additionally, the city made
transfers of payments in lieu of taxes from its water and wastewater enterprises in the total approximate amount of $2.8 miliion for fiscal 2009.
The city, however, does maintain a separate contingency reserve fund, which does not count toward the citys reserve policy and had a year-end
fund balance of appro�amately $1.8 million (fiscal 2008) and $1.3 million (unaudited fiscal 2009). Including these additional balances, the citys
available reserves represent 10.5% ($3.1 million) and 10.4% ($3.2 million) of general fund revenues, respectively. Although no plans have been
specified to use the contingency reserve fund monies in the near term, officials intend to utilize the fund for one-time only expenditures.
Loowng forward to ending fisca12010, the city has implemented budget adjustments that total $1.4 million and expect that ending total general
fund balance will be level at $2.0 million, which is greater than its April 30, 2010 forecast of $1.4 million; officials also anticipate that the citys
contingency reserve fund will have approwmately $1.0 million at the end of fiscal 2010. Adjustments included reductions and deferrals to staff
hires, implementation of unpaid furlough days and a voluntary early separation program, layoffs and other operational efficiencies. Officials have
indicated that they e�ect to fu�ll their general fund reserve policy by growing ending fund balance by $400,000 to $500,000 annually. Future
credit reviews will focus on managemenYs ability to maintain fiscal balance and restore reserves to policy target levels in the near- to medium-
term.
MANAGEABLE DEBT PROFILE; PAYWENTS SUPPORTED BY REVffAL¢ATIONAREAPROJECT
Moody's expects the cit�/s debt position to remain manageable given limited future borrowing plans. The current unlimited tax general obligation
and limited tvc general obligation proceeds wiil respectively refinance certain maturities of the citys Unlimited Tax General Obligation Bonds,
2002 and finance the construction of parking areas. Direct and overall debt burdens remain manageable at 1.0% and 2.2%, respectively. Payout
of principal is slightly below average at 40.3% in ten years. Of note and unrated by Moodys, the citys Weekly Rate Demand Revenue Bonds,
2003 (Kitsap Regional Conference Center Parking Garage) remain outstanding with a letter of credit, which is scheduled to expire on August 10,
2011. The city is currenUy evaluating options to refinance its 2003 bonds which are secured by revenues of the parking system and are not
general fund obligations of the city.
The limited tax general obligation offering is secured by the full faith and credit af the City within the constitutional and statutory limitations of non-
voter approved debt. Officials expect to pay a portion of debt service with money received under the Local Revitalization Financing (LRF)
program. The city has received approval from the Washington State Department of Revenue to collect an LRF tax for improvements to the
Bremerton Harborside Revitalization Area (the revitalization area). The LRF tax, which shall not exceed 0.051%, is an additional local sales and
use tax that is imposed by the city and collected by the state Department of Revenue. The city e�ects to receive a state conVibution of no more
than $330,000 annually, which is generated by the LRF tax, and intends to pledge these revenues to pay debt service on the portion of the bonds
issued for the revitalization area. There wiil be a two-month lag between the time the tax is collected and the time it is received by the city; on
September 30, 2010, the city received its first LRF payment from the state in the amount of $29,498. Add'Rionally, the ciry can capture additional
revenues from property tax and sales/use tax increment; however, at this time no cities have opted to become participants, and the city does not
expect to collect these additional revenues.
What could move the rating - UP
- Trend of signficant tax base growth
- Substantial appreciation of wealth measures
What could move the rating - DOWN
- Signficant deterioration of financial position
- ProVacted decline in assessed valuation
KEY STATISTICS
2009 estimated population: 36,190
2010 full value: $2.9 billion
1999 per capita income: $16,724 (72.8% of state)
1999 median family income: $36,358 (67.6% of state)
2010 full value per capita: $80,118
Direct debt burden: 1.0%
Overall debt burden: 2.2%
Payout of principle (10 years): 40.3%
Fiscal 2008 general fund balance: $1.3 million (4.1°/a of revenues)
Fiscal 2008 general fund balance, including contingency reserve: $3.1 million (10.5°!0 of revenues)
Unaud'Red fiscal 2009 general fund balance: $1.9 million (6.3% of revenues)
Unaudited fiscal 2009 general fund balance, including contingency reserve: $3.2 million (10.4% of revenues)
PRWCIPALIv1ETHODOLOGYAND LAST RATINGACTION
The last rating action with respect to City of Bremerton, Washington was on May 18, 2010 when a municipal finance scale limited tax general
obligation bonds rating ofA1 was assigned to the City of Bremerton, Washington.
The principal methodologies used in assigning the ratings were Nbodys General Obligation Bonds Issued by U.S. Local Govemments,
published on October 2009, and Bond Anticipation Notes and Other Short Term Financings, published on May 2007, and both available on
www.moodys.com in the Rating Methodologies sub-directory under the Research & Ratings tab. Other methodologies and factors that may
have been considered in the process of rating this issuer can also be found in the Rating Methodologies sub-directory on Moodys website.
REGULATORY DISCLOSURES
Information sources used to prepare the credit rating are the following: parties involved in the ratings, public information.
Nbodys Investors Service considers the quality of information available on the credit satisfactory for the purposes of assigning a credit rating.
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MOODY'S adopts all necessary measures so that the information it uses in assigning a credit raUng is of sufficient quality and from sources
MOODY'S considers to be reliable including, when appropriate, independent third-party sources. Fbwever, MOODI^S is not an auditor and
cannot in every instance independently verify or validate information received in the rating prxess.
I
Please see ratings tab on the issuer/entity page on Nbodys.com for the last rating action and the rating history.
The date on which some Credit Ratings were first released goes back to a time before Nbodys Investors Service's Credit Ratings were fully
digitized and accurate data may not be available. Consequently, Moodys Investors Service provides a date that it believes is the most reliable
and accurate based on the information that is available to it. Please see the ratings disclosure page on our website www.moodys.com for further
information.
Please see the Credit Policy page on Nbodys.com for the methodologies used in determining ratings, further informa6on on the meaning of each
rating category and the definition of default and recovery. j
AnelystS �
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Justin Resuello �
Analyst '
Public Finance Group
Moodys Investors Service �
Patrick Ford i
Backup Analyst i
Public Finance Group I
Moodys Investors Sennce ;
Matthew A Jones I
Senior Credit Officer �
Public Finance Group ;
Nbodys Investors Service �
CoMacts �
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Journalists: (212) 553-0376
Research Clients: (212) 553-1653
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Nbodys Investors Service
250 Greenwich Street �
New York, NY 10007
USA �
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MQQDY'S
INVESTORS SERVICE
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O 2010 Moodys Investors Service, Inc. and/or its licensors and affiliates (collectively, "MOODY'S"). All rights reserved.
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