HomeMy WebLinkAbout5211 ORDINANCE NO. 5211
AN ORDINANCE of the City Council of the City of
Bremerton, Washington, creating a new Section 15 06 025 entitled
"Sewer Conservation Loan Program "
WHEREAS, Chapter 15 06 BMC requires property owners to pay a General
Facilities Charge (GFC) in order to connect to the City's sewer system,
WHEREAS, some residential homeowners in the City's utility service area have
failing septic systems and are required by the Health District to connect to the City's sewer
system but cannot afford to install the sewer laterals and pay the GFC, and
WHEREAS, RCW 35 67 360 authorizes cities to use public moneys or credit
derived from operating revenues from the sale of storm water or sewer services to assist property
owners in financing a sewer connection, and
WHEREAS, the City Council desires to enact a new section of the BMC entitled
Sewer Conservation Loan Program to allow residential homeowners with failing septic systems
to pay the GFC by making monthly payments over a period of tune not to exceed five years,
NOW THEREFORE,
THE CITY COUNCIL OF THE CITY OF BREMERTON, WASHINGTON,
DOES HEREBY ORDAIN AS FOLLOWS
SECTION]. Section 15 06 25 of the Bremerton Municipal Code entitled "Sewer
Conservation Loan Program" is hereby created to read as follows
15.06.025 SEWER CONSERVATION LOAN PROGRAM
(a) Property owners who meet the requirements of this section may qualify for a loan
known as a Sewer Conservation Loan pursuant to RCW 35 67 360 A Sewer Conservation Loan
under this section is a loan from the City to a property for all, or a portion, of the GFC
established under BMC 15 06 020 and any inspection fees related to connection to the City's
sewer system The principal amount of the loan authorized by tlus section shall not exceed the
amount of the GFC, together with inspection fees
(b) In order for a property owner to qualify for a loan under this section, the property
to which the connection is to be made must be
(1) within the City's sewer service area,
(2) a developed lot with an existing single - family home, and
(3) served by a septic system that has been designated as a failed septic
system by the Kitsap Public Health District
(c) In order to qualify for a loan under this section, the property owner must
(1) complete a Sewer Conservation Loan Application,
(2) pay the Sewer Conservation Loan Application fee,
(3) have no utility shut -offs within the 36 months prior to the date of the
Sewer Conservation Loan Application,
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Sewer Conservation Loan Program
(4) execute a promissory note and deed of trust under the terms set out in this
section,
(5) pay the recording fee to record the deed of trust, and
(6) if outside city limits, agree not to protest any annexation petition that
includes the property being connected to the City's sewer system and grant the City a Limited
Power of Attorney to include consent to the annexation of said property as part of any Notice of
Intent or Petition for Annexation presented to the City
(d) The terms of the loan shall be as follows
(1) The loan will be structured as a simple promissory note
(2) The term of the note shall not exceed 5 years, commencing on the date the
property owner executes the promissory note
(3) The note will bear interest at the rate which is based on the City's current
investment yield at the time of the loan, plus a two percent margin to cover administrative costs
and interest rate fluctuations over the loan period
(4) The loan will be secured by a deed of trust, or such other instrument as
may be acceptable to the City Finance Director and City Attorney
(5) The note shall provide for acceleration of the principal upon default in any
payment In the event of default, the City shall have all available remedies, including, but not
limited to, foreclosure of its interest in the property, notification of credit bureaus, use of
collection agencies, and terminating service
(6) Loan principal and interest charges will be amortized and billed by the
City and due monthly The monthly payment will be no lower than $50 00 Appropriate penalties
may be imposed by the City for delinquent accounts
(7) There shall be no penalty for prepayment
(8) The note will contain a due on sale clause which provides for payment in
full of all outstanding principal and interest upon sale of the property Loans shall be limited by
available funds The amount of available funds shall be at the discretion of the City Council and
shall be determined periodically by City Council motion, resolution, or ordinance All funds used
for loan purposes shall be derived from operating revenues from the sale of sewer services
SECTIONZ SeverabihU If anyone 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
SECTION 3. Effective 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 rd day of r 12013
.Z� w
GREG qEELER, Council President
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Sewer Conservation Loan Program
Approved this day of 2013
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PATTY L ,Mayor
ATTEST APPROVED AS TO FORM
3 �� )�/ � 'Ic
SHANNON CORIN, City Clerk ROGE LUBOVICH, City Attorney
PUBLISHED the day of /'i , 2013
EFFECTIVE the day of z5a2 2013
ORDINANCE NO 5211
R \Legal\Legal\Ordmances\Public Works & Utilities \Sewer Conservation Loan Program doc
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Sewer Conservation Loan Program
AFFIDAVIT OF PUBLICATION
Account #42742 AD# 20132470
STATE OF WASHINGTON
COUNTY OF KITSAP
I, Rolene Buswell, being fast duly sworn on oath, deposes and says That she is now, and at all tunes
embraced in the publication herein mentioned was the principal clerk of the printers and publishers of
KITSAP SUN, that said newspaper has been approved as a legal newspaper by order of the Superior Court
of the County of Kitsap, in which County it is published and is now and has been for more than six months
prior to the date of the publication hereinafter referred to, published in the English language continually as
a daily newspaper in Bremerton, Kitsap County, Washington, a weekly newspaper in Kitsap County,
Washington and is now and during all of said time, was printed in an office maintained in the aforesaid
place of publication of said newspaper, that the following is a true text of an advertisement as it was
published in regular issues (and not in supplement form) of said newspaper on the following date, to wit
And on April 5, 2013 such newspaper was regularly distributed to its subscribers during all of said period
The full amount of the fee charged for the foregoing publication is the sum of $32 19 This amount has not
been paid in full
X c—
(Signature of Principal Clerk)
Subscribed and sworn to before me this day of April 12, 2013
Notary Public in and for the State of Washington, Kitsap County 7NNOTARY PUBLIC
WASHINGTON
CHRISTY M MOFFIT'T
My Appointment Expires July 08, 2016
ORDINANCE NO 5211
AN ORDINANCE of the City Council of the City of Bremerton, Washington, creating a new Section
15 06 025 entitled "Sewer Conservation Loan Program "
PASSED by the City Council on the 3rd day of April, 2013
The full text of this ordinance is available from the City Clerk's Office, 345 Sixth Street, Suite 600,
Bremerton, WA 98337
April 5, 2013
Ad# 20132470