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COW 2011-09-26 COMPLETE AGENDA PACKET
Tukwila City Counci /Agenda COMMITTEE OF THE WHOLE Jim Haggerton, Mayor Counci /members: Joe Duff ie Joan Hernandez Shawn Hunstock, Interim City Administrator Dennis Robertson Verna Seal Allan Ekberg, Council President Kathy Hougardy De'Sean Quinn Monday, September 26, 2011, 7:00 PM 1. CALL TO ORDER PLEDGE OF ALLEGIANCE Tukwila City Hall Council Chambers 2. SPECIAL Update on the educational outreach for recycling activities: Don Frey, PRESENTATIONS Municipal Services Manager, Allied Waste 3. CITIZEN COMMENT At this time, you are invited to comment on items not included on this agenda (please limit your comments to five minutes per citizen). To comment on an item listed on this agenda, please save your comments until the issue is presented for discussion. 4. SPECIAL a. An agreement with Bonneville International for advertising for Seattle Pg.1 ISSUES Southside. 5. REPORTS 6. MISCELLANEOUS 7. EXECUTIVE SESSION S. ADJOURNMENT b. An ordinance regarding livestock, small animals, and fowl. Pg.11 c. An ordinance regarding chronic nuisance properties. Pg.27 d. Non profit fee analysis for Revenue Generating Regulatory License Pg.51 (RGRL). e. An ordinance regarding refunding 2003 bonds. Pg.57 f. Early redemption of 1995 revenue bonds Pg.87 a. Mayor b. City Council c. Staff d. City Attorney e. Intergovernmental Tukwila City Hall is wheelchair accessible. Reasonable accommodations are available at public hearings with advance notice to the City Clerk's Office (206- 433 -1800 or tukclerk @tukwilawa.gov). This notice is available at www.tukwilawa.aov, and in alternate formats with advance notice for those with disabilities. Tukwila Council meetings are audio taped. HOW TO TESTIFY If you would like to address the Council, please go to the podium and state your name and address clearly for the record. Please observe the basic rules of courtesy when speaking and limit your continents to five minutes. The Council appreciates hearing from citizens but may not be able to take immediate action on continents received until they are referred to a Committee or discussed under New Business. COUNCIL MEETINGS No Council meetings are scheduled on the 5th Monday of the month unless prior public notification is given. Regular Meetings The Mayor, elected by the people to a four -year term, presides at all Regular Council Meetings held on the 1st and 3rd Mondays of each month at 7:00 p.m. Official Council action in the form of formal motions, adopting of resolutions and passing of ordinances can only be taken at Regular Council meetings. Committee of the Whole Meetings Council members are elected for a four -year term. The Council President is elected by the Council members to preside at all Committee of the Whole meetings for a one -year term. Committee of the Whole meetings are held the 2nd and 4th Mondays at 7:00 p.m. Issues discussed are forwarded to the Regular Council meeting for official action. GENERAL INFORMATION At each Council meeting citizens are given the opportunity to address the Council on items that are not included on the agenda during CITIZENS COMMENTS. Please limit your comments to 5 minutes. Special Meetings may be called at any time with proper public notice. Procedures followed are the same as those used in Regular Council meetings. Executive Sessions may be called to inform the Council of pending legal action, financial, or personnel matters. PUBLIC HEARINGS Public Hearings are required by law before the Council can take action on matters affecting the public interest such as land -use laws, annexations, rezone requests, public safety issues, etc. Section 2.04.150 of the Tukwila Municipal Code states the following guidelines for Public Hearings: The proponent shall speak first and is allowed 15 minutes for a presentation. 2. The opponent is then allowed 15 minutes to make a presentation. Each side is then allowed 5 minutes for rebuttal. 4. Citizens who wish to address the Council may speak for 5 minutes each. No one may speak a second time until everyone wishing to speak has spoken. 5. After each speaker has spoken, the Council may question the speaker. Each speaker can respond to the question, but may not engage in further debate at this time. 6. After the Public Hearing is closed and during the Council meeting, the Council may choose to discuss the issue among themselves, or defer the discussion to a future Council meeting, without further public testimony. Council action may only be taken during Regular or Special Meetings. COUNCIL AGENDA SYNOPSIS ITEM NO. Meetitr, Date Prepared by Mayor's Council review 09/26/11 KK 10/03/11 KK 4.A. ITEM INFORMATION CAS NUiMBF?R: 11 -094 (STAFF SPONSOR: KATHERINE KERTZMAN IORIGINALAGI_`NDA DATI_`: 9/26/11 AGENDA I' FIM TrrL.l_;. Multiple year multiple media advertising agreement with Bonneville International. Cxr1?G()RY Z Discussion Motion Resolution Ordinance BidAward Public Hearing Otber 11I/g Date 09126111 11Itg Date 10103111 Mt g Date 111t g Date Alt g Date Mt g Date 111tg Date SPONSOR ❑Council ®Mayor Adm Svcs DCD Firtarace .Fire Legal P6 ❑Police Pwl SN )NSOR'S The Council is being asked to authorize the Mayor to sign an advertising agreement with SUMMARY Bonneville International on behalf of Seattle Southside Visitor Services in an amount not to exceed $84,000. RI?1'll;��tF,D 13Y COW Mtg. CA &P Cmte F &S Cmte Transportation Cmte Utilities Cmte Arts Comm. Parks Comm. Planning Comm. DATE: 09/20/2011 CHAIR HOUGARDY RECOMMENDATIONS: SPONSOR /ADMIN. Authorize Mayor's signature. COMMIT I'IJE Unanimous Approval; Forward to Committee of the Whole COST IMPACT FUND SOURCE EFPI?NDI'1'URl RF:c)UIRI?D AMOUNTBUDGETED APPROPRIATION REQUIRED $84,000 $345,000 Fund Source: LODGING TAX FUND 101.00.557.301.44.10 101.00.SS7.303.44.11 (NOT GENERAL FUND) Comments: Unanimous Approval by the Lodging Tax Advisory Committee; Forward to Finance Safety I MTG. DATE I RECORD OF COUNCIL ACTION 09/26/11 I MTG.DATEI ATTACHMENTS 09/26/11 Informational Memorandum dated 08/29/11 Bonneville International Agreement Website Activity Report Minutes from the Finance and Safety Committee meeting of 9/20/11 were not available 10/3/11 1 x City of Tukwila Jim Haggerton, Mayor INFORMATIONAL MEMORANDUM TO: Mayor Haggerton FINANCE AND SAFETY COMMITTEE FROM: Katherine Kertzman TOURISM PROGRAM MANAGER DATE: September 14, 2011 SUBJECT: Multiple year multiple media advertising agreement with Bonneville International ISSUE The Council is being asked to authorize the Mayor to sign a multiple year multiple media advertising agreement with Bonneville International on behalf of Seattle Southside Visitor Services (SSVS). BACKGROUND SSVS is nearing completion of an exclusive 5 months multiple media advertising beta test with Bonneville International that includes on -air commercials during prime daytime drive times on KIRO -FM and KTTH -AM radio, on -line banner ads for MyNorthwest.com and RSS feed from SeattleSouthside.com /special deals to NorthwestTravelDeals.com and utilization of an opt -in database collected through NorthwestTravel Deals. com to reconnect with prospects with e- communications and promos from Seattle Southside. The attached materials are from the SeaTac Hotel Motel Advisory Committee review providing the background information of the beta test outcomes. Seattle Southside.com continues to be one of SSVS' most successful marketing tools used to reach potential travelers, providing them with visitor information that generate sales leads. Consistently marketing the website in a variety of ways is the key to gaining exposure and getting a consistent flow of traffic into the website. Bonneville is an award winning, dynamic media company with radio, television, online, satellite, and advertising properties in Los Angeles, Seattle, Phoenix, and Salt Lake City. The company has a long- standing reputation and is known industry-wide for its innovative business model, its values- oriented programming, and for its nationally recognized commitment to serving the communities where it broadcasts. Through a multi -media strategy of radio commercials directs listeners to SeattleSouthside.com for details of Seattle Southside events and to MyNWtrave Idea Is. com for details regarding special offers available in Seattle Southside. MyNWtraveldeals.com in turn provides links to every page on the SSVS website that promotes a special offer. The SSVS web pages in turn allow visitors to book packages through our hotels. This strategy has garnered much success evidenced by the growth of: monthly unique website visits, page view rankings for packages and promotions, requests received through the SeattleSouthside.com website, conversions (hotel reservations made through the website). 9 INFORMATIONAL MEMO Page 2 SeattleSouthside.com is currently the 4 th most visited destination on the MyNorthwest.com website year to date. Additionally, the campaign offers excellent visibility throughout Western Washington with radio promotions for SSVS deals and local events such as the Backyard Wildlife Festival, Blues and Brews Festivals, and more. Bonneville estimated the radio and digital campaign for each promo or event reaches 350,000 people 2 -3 times each. Over 80% of the visits to the Seattle Southside website from the MyNorthwest.com website during the Beta period were from first -time visitors meaning this strategy is drawing people that were not finding the website through other means. Plus visitors stayed on the Seattle Southside website an average of 2.75 minutes and visited more than three pages long enough to make a positive decision to click to a lodging venue's website or to click to the reservation booking page. In addition, the strategy produced direct traffic to the Seattle Southside website through voice referrals in radio promotions. However, this traffic is more difficult to quantify but general awareness is achieved as is evidenced by the increase in attendees for the Backyard Wildlife Event, and more. The campaign began in April 2011 and ran for 5 months as a beta test at a cost of $6,000 monthly totaling $30,000. The campaign was funded jointly by lodging tax from the 4 SSVS participating cities: Tukwila, SeaTac, Kent and Des Moines. Seattle Southside has noted the following: Both the radio spots and the website layout are very well executed. Listener and website visitor volumes are significantly higher than similar radio stations and websites. Both the radio spots and website promote Seattle Southside area events and special offers. The website links to every page on Seattle Southside's website that promotes a special offer. Links are updated nightly via an automated RSS feed. Seattle Southside staff does not need to expend time reentering items that are already entered on the Seattle Southside website. Links pass Google Page Rank to Seattle Southside web pages. Links from the website to Seattle Southside began in mid -April 2011. Since that time the links have produced 487 visits. 83.16% of these visits were new visits to the Seattle Southside website. The visits have resulted in an average of 3.16 pages /visit and 2 minutes 46 seconds on site (long enough to make a positive decision or to link out to partner sites). Lodging properties have reported reservations that specifically were generated from visitors that originated from this website. As of August 3 rd Bonneville has procured an email list of 730 members. Once this number reaches 1,000 an e- newsletter will be launched and Seattle Southside events and special offers will be promoted in this additional medium. It is expected that this will occur before year end. ANALYSIS The second phase of the campaign will begin Nov. 2011 at $6,000 a month for 14 months not to exceed $84,000. Staff was able to negotiate lock in pricing, bonus radio time and an exclusivity WA2011 Info MemosWemo to Fin Safety Boneville 2011 (Version4).docx 4 INFORMATIONAL MEMO Page 3 agreement on Northwest Travel Deals for each paid month locking out Seattle, Renton, Federal Way, Auburn SSVS's nearby competition. The Bonneville International multiple media advertising strategies were reviewed by the SeaTac Hotel Motel Tax Advisory Committee on June 8, 2011 and recommended for continuance. The agreement is scheduled to be reviewed at the Monday, September 19, 2011 Tukwila Lodging Tax Advisory Committee meeting. Budget impacts: There is no additional budget request for this item. The cost for this work is included within the Council approved 2011 -2012 Budget; some months will be paid by "SeaTac Only" account that is funded 100% by the City of SeaTac; the balance will be paid out of the "Joint Media Buy" account that is funded by the 4 SSVS participating cities: Tukwila, SeaTac, Kent and Des Moines. However, because the proposal amount is over $40,000, it requires Council approval. Since this is a tourism program item, the costs will be paid out of lodging taxes, not the City's general fund. RECOMMENDATION The Council is also asked to consider this item at the September 26, 2011 Committee of the Whole meeting and subsequent October 3, 2011 Regular meeting. ATTACHMENTS Bonneville International Agreement Website Activity Report WA2011 Info MennosNemo to Fin Safety Boneville 2011 (Version4).docx 5 x FAA rN �3p�g N V O CIO V� 0 V v 0 0 0 M N Hj 0 0 H v v O O d 0 v i bi a u 0 0 o O o 4 f} o N 't O r--q N b1J x V O Q) v W U Q) ^C o to v �.0 O w •o v O fiz O u v o d p Z C) 0 c� v .�1 v M rw v �w U O U r 3 0 v o U) E O r� �o O x� 0 0 U cn cn V v v 7 :5 O Q v t~ a 0 a 7 uao3 o 0 O O r~ d o °O °o v o v C) V o v o O +1i1 ri V i v v J O x v bA C p •O C) 0 G .C) 7 v r p O N Q O f~ C C) 14-4 v z ,1 u Z aJ .di V G v S ii tG X v V w a w bA Q �p O O O N .i Q.�w z Q n vn cn o Q) 0 o v c u v .a f O cu pp bbO z W �w d U 0 a 7 V v Q V Z �r W cu O bA V h �Use3 v O 0 0 M N kA O 0 z v v O 0 OJ v I b! a u o o rn Ln p o m Ef} Efl Ff} Ef} +o LO v x v a 0 v V w V v v Q" t,o O o S1. u 'LS O Q, bA Cd Q o v 00 z 0 v v M 0 Q V o w 9 w bA O V O o o v o o V V I-i W 0 O O 'C v 'C H O Q v •a" O o o S�. v 0 o v o o o o o, Ln ct U) w �v0� o v Ln V i 7 5 o O o y 0 O bb t 0 ON V w Lr) (1) O b�A E v O 7 bjO v c o o bA Q Q o Q O O�� c6 ;-4ww N c v 7 v c a 0 bA bA z W �z LL 0 a Website Activity Report Seattle Southside Monthly Unique visitors 35,000 30,000 25,000 20,000 .n Q r 15 10,000 5,000 9 I Jan Feb I Mar Apr r Ma I y Jun Jul Aug Se p Oct Nov Dec 1-9-20071 1 5,706 I 5,494 5,152 1- 4 -20081 5,840 I 5,576 6,812 7,958 8,133 %457 9,509 8,148 6 I 6,304 5,856 6,811 '-min-2009I 7 1 6,724 I 8,136 7 8,173 15.095 15.801 15,832 I 12,792 12,210 I 12 I 11,058 1-0-20101 11,867 1 11,243 I 12,576 11 12,072 I 10,617 13 I 21,935 I 18,218 I 20,484 20,073 I 19 1-0-2011 29 1 24 1 26,213 I W460 1 30,332 I 31,098 I 31.839 I 30,008 9 10 COUNCIL AGENDA SYNOPSIS CAS NUMBI R: 11 -082 I STAFF SPONSOR: JACK PACE A(;r.NDA hrr? AI Trri,r: Update to Tukwila's Small Animal Regulations Counci6 review ITEM NO. I ORIGINAI,Ac,ENDA DA'T'E: 8/22/11 Diswusvion Motion Resolution Ordinance BidAward Puhlic.Hearino Other MIS bate tlltg Date Mtg Dale Mtg Date 1013111 t1ltg Date Mts Date Mi pate 8/22&9/26 SPONSOR Council Mayor HR. DCD ❑Finance Fire IT P&R Police PIP SPONSOR'S TMC 7.08 which regulates the keeping of small animals and livestock has not been updated SUMMARY since its adoption in 1956. Citizens interested in urban agriculture and local food production have asked the Council to lower the minimum lot size for keeping chickens below the current standard of 10,000 sf. The draft ordinance makes this change along with minor housekeeping edits to make the regulations more enforceable. CO\U Mtg. CA &P Cmte F &S Cmte Transportation Cmte Utilities Cmte Arts Comm. Parks Comm. Planning Comm. DATE: 8/8/11,9/12/11 COMMITTEE CHAIR: S EAL 'RECOMMENDATIONS: SI /ADn4IN. Department of Community Development COMIN4TrTFI Unanimous Approval; Forward to Committee of the Whole COST IMPACT FUND SOURCE E\I'r,NDI"]'URI? R "QUIRED AMOUNTBUDGETED APPROPRIATION REQUIRED $0 $0 Fund Source: NA Connnents: MTG.DATEI RECORD OF COUNCIL ACTION 8/22/11 Forward the ordinance back to CAP to consider eliminating the minimum lot size 9/26/11 10/3/11 I MTG. DATE I ATTACHMENTS 8/22/11 I Informational Memorandum dated 8/3/11 Ordinance in Draft Form Minutes from the Community Affairs and Parks Committee meeting of 7/11/11 8/8/11 9/26/11 I Informational Memorandum dated 9/16/11 Ordinance in Draft Form Minutes from Community Affairs and Parks meeting of 9/12/11 and C.O.W. of 8/22/11 1 10/3/11 11 -Initials Meeting Date Prepared by rllayor; reviwn, 08/22/11 I JP 19 09/26/11 I JP I 10/03/11 I I JP I I ITEM INFORMATION CAS NUMBI R: 11 -082 I STAFF SPONSOR: JACK PACE A(;r.NDA hrr? AI Trri,r: Update to Tukwila's Small Animal Regulations Counci6 review ITEM NO. I ORIGINAI,Ac,ENDA DA'T'E: 8/22/11 Diswusvion Motion Resolution Ordinance BidAward Puhlic.Hearino Other MIS bate tlltg Date Mtg Dale Mtg Date 1013111 t1ltg Date Mts Date Mi pate 8/22&9/26 SPONSOR Council Mayor HR. DCD ❑Finance Fire IT P&R Police PIP SPONSOR'S TMC 7.08 which regulates the keeping of small animals and livestock has not been updated SUMMARY since its adoption in 1956. Citizens interested in urban agriculture and local food production have asked the Council to lower the minimum lot size for keeping chickens below the current standard of 10,000 sf. The draft ordinance makes this change along with minor housekeeping edits to make the regulations more enforceable. CO\U Mtg. CA &P Cmte F &S Cmte Transportation Cmte Utilities Cmte Arts Comm. Parks Comm. Planning Comm. DATE: 8/8/11,9/12/11 COMMITTEE CHAIR: S EAL 'RECOMMENDATIONS: SI /ADn4IN. Department of Community Development COMIN4TrTFI Unanimous Approval; Forward to Committee of the Whole COST IMPACT FUND SOURCE E\I'r,NDI"]'URI? R "QUIRED AMOUNTBUDGETED APPROPRIATION REQUIRED $0 $0 Fund Source: NA Connnents: MTG.DATEI RECORD OF COUNCIL ACTION 8/22/11 Forward the ordinance back to CAP to consider eliminating the minimum lot size 9/26/11 10/3/11 I MTG. DATE I ATTACHMENTS 8/22/11 I Informational Memorandum dated 8/3/11 Ordinance in Draft Form Minutes from the Community Affairs and Parks Committee meeting of 7/11/11 8/8/11 9/26/11 I Informational Memorandum dated 9/16/11 Ordinance in Draft Form Minutes from Community Affairs and Parks meeting of 9/12/11 and C.O.W. of 8/22/11 1 10/3/11 11 12 City of Tukwila TO: FROM: DATE: SUBJECT ISSUE Jim Haggerton, Mayor INFORMATIONAL MEMORANDUM Mayor Haggerton Community Affairs and Parks Committee Nora Gierloff, Deputy DCD Director September 16, 2011 Revised after the Community Affairs and Parks Committee Meeting. Tukwila's Animal Regulations Should Tukwila's Animal Regulations at TMC 7.08 be revised to allow chickens to be kept on any lot regardless of area? BACKGROUND A citizen comment made at the May 16, 2011 Council Meeting requested that the City modify TMC section 7.08 to allow increased opportunities for residents to raise chickens. The following table compares the restrictions on chicken keeping in the South King County jurisdictions of Burien, Des Moines, SeaTac, Kent, and Renton, as well as Tukwila and Seattle. Burien NONE 20 ft NONE 3 2002 Des 22,000 sq ft 35 ft 45 ft 10 1981 Moines Tukwila 10,000 sq ft 20 ft 65 ft 12 1956 "Number allowed typically increases with lot size. Renton allows more than three chickens with an "additional animals permit." Renton allows chickens in rear yards only. SeaTac allows a total of 5 "outside animals," which includes chickens. Sources: Seattle Municipal Code 23.42.052, Renton Municipal Code 4 -4 -010, Kent Municipal Code 15.08.070, SeaTac Municipal Code 15.12.015, Burien Municipal Code 19.17.100, Des Moines Municipal Code 18.33.070, Tukwila Municipal Code 7.08 These results reveal that Tukwila's regulations at TMC 7.08, adopted in 1956, are the oldest and among the most restrictive of those examined. In the category of minimum lot size, Tukwila has the second most restrictive requirement, as no chickens are allowed on lots smaller than 10,000 square feet. Some jurisdictions do not require a minimum lot size for keeping chickens, instead allowing them as an accessory use. W: \2011 Info Memos \2011 -9 -12 CAP Memo.docx109 /16/2011 13 Min. Lot Setback: Setback: Regs City allowed* Size Lot Line residence Revised Seattle NONE NONE loft 8 2010 Renton 6,000 sq ft 10 ft* NONE 3* 2010 Kent 5,000 sq ft loft NONE 3 2007 SeaTac NONE NONE NONE 5* 2005 Burien NONE 20 ft NONE 3 2002 Des 22,000 sq ft 35 ft 45 ft 10 1981 Moines Tukwila 10,000 sq ft 20 ft 65 ft 12 1956 "Number allowed typically increases with lot size. Renton allows more than three chickens with an "additional animals permit." Renton allows chickens in rear yards only. SeaTac allows a total of 5 "outside animals," which includes chickens. Sources: Seattle Municipal Code 23.42.052, Renton Municipal Code 4 -4 -010, Kent Municipal Code 15.08.070, SeaTac Municipal Code 15.12.015, Burien Municipal Code 19.17.100, Des Moines Municipal Code 18.33.070, Tukwila Municipal Code 7.08 These results reveal that Tukwila's regulations at TMC 7.08, adopted in 1956, are the oldest and among the most restrictive of those examined. In the category of minimum lot size, Tukwila has the second most restrictive requirement, as no chickens are allowed on lots smaller than 10,000 square feet. Some jurisdictions do not require a minimum lot size for keeping chickens, instead allowing them as an accessory use. W: \2011 Info Memos \2011 -9 -12 CAP Memo.docx109 /16/2011 13 INFORMATIONAL MEMO Page 2 14 1600 1400 Distribution of LDR Parcels by Parcel Area 1415 1200 Y •v N 1000 v U ru 800 a c 650 600 Z 400 200 t 0 2,000 6,500 6,500 10,000 10,000 20,000 Parcel Size (in square feet) 491 t 20,000 or larger The results of this analysis and possible changes to TMC 7.08 were presented to the Community Affairs and Parks Committee (CAP) on July 11` The Committee's direction was to focus changes to the code specifically on chickens and related housekeeping items, leaving the rules relating to other livestock, small animals and other fowl to be addressed at a later date. A draft ordinance revising TMC 7.08 with the following changes was presented to the CAP on August 8, 2011 and to the City Council on August 22, 2011. Allow chickens to be kept on parcels that are 6500 square feet or larger. 6500 square feet is the minimum conforming lot size in the Low Density Residential zone. This change will affect 1,415 LDR parcels in the city, 37% of all LDR parcels analyzed and an even larger percentage of parcels currently in single family use. Reduce setbacks to 10 feet between enclosures (coops, etc.) or fenced -in run areas and any residence or property line. Allow one chicken per 1000 square feet of parcel area. Prohibit the keeping of roosters, a common prohibition in urban areas due to noise concerns. Simplify the handling of animal waste and require that areas used by animals be kept clean to control odor, disease and pests. Exempt animals kept as pets from regulation in Chapter 7.08 as they fall under the more recently adopted Chapter 7.12. Specifically, guinea pigs, hamsters and parakeets are considered pets, while chinchillas and pigeons are now treated in the same way as rabbits. Delete obsolete references, such as those referring to a health officer or building superintendent. References to a health officer will instead refer to code enforcement officer. Allow residents to keep all animals that were legally owned before the changes are enacted. WA2011 Info Memos \2011 -9 -12 CAP Memo.docx209 /16/2011 INFORMATIONAL MEMO Page 3 DISCUSSION A citizen commented at the August 22, 2011 Council meeting that he would like the minimum lot size for keeping chickens to be removed, he supported the ban on roosters and that he supported allowing chickens to be kept at p- patches. The Council sent the ordinance back to Committee for further discussion. Staff followed up with both citizens who commented on this issue to ask if they had any further changes for the Council's consideration. Neither one had additional recommendations. The attached ordinance has been amended to remove the minimum lot size for keeping chickens, instead treating them as an accessory use. This means that chickens cannot be kept on an otherwise vacant parcel but must be associated with another permitted use such as a residence or business. No change is required to allow chickens at p- patches. The limitation of one chicken per 1,000 square feet of parcel area remains so the number of chickens will be proportional to the size of the parcel. RECOMMENDATION The Committee is being asked to forward the ordinance the September 26, 2011 Committee of the Whole meeting and subsequent October 3, 2011 Regular Meeting. ATTACHMENTS Ordinance in draft form Minutes from August 22, 2011 Committee of the Whole Meeting Minutes from the September 12, 2011 Community Affairs and Parks Committee meeting WA2011 Info Memos \2011- 9- 12_CAP_Memo.docx309 /16/2011 15 16 Jil z AN ORDINANCE OF THE CITY COUNCIL OF THE CITY OF TUKWILA, WASHINGTON, AMENDING ORDINANCE NO. 232 (PART) REGARDING LIVESTOCK, SMALL ANIMALS AND FOWL AS CODIFIED IN TUKWILA MUNICIPAL CODE (TMC) CHAPTER 7.08; REPEALING ORDINANCE NO. 232 §15, §17 AND §18; PROVIDING FOR SEVERABILITY; AND ESTABLISHING AN EFFECTIVE DATE. WHEREAS, the City Council of the City of Tukwila, Washington, recognizes the public health benefits of locally and organically sourced food; and WHEREAS, the City's current regulations regarding livestock, small animals and fowl were adopted in 1956 and do not reflect changing public health priorities or local and national trends toward greater acceptance of urban agriculture, and WHEREAS, the City Council recognizes the particular popularity of chickens among residents of urban areas due to the sustainable source of protein provided by their eggs, the relative ease of their care, and the relative quiet and unassuming nature of chicken hens; and WHEREAS, the City Council desires to allow more residents of the City opportunities to participate in the keeping of chickens for recreation and to provide themselves with a supplemental source of nutrition; and WHEREAS, the City Council has received comments from the public to the effect that the City's current regulations of livestock, small animals and fowl are needlessly onerous in relation to the keeping of chickens; and WHEREAS, the City desires to amend the City's current regulations of livestock, small animals and fowl to provide more regulatory flexibility for the keeping of chicken hens on small lots; to protect the public health, safety, and welfare by preventing nuisances; and to improve enforceability; and W: Word Processing \Ordinances \Small animals and fowl regulations amended strike -thru 9 -7 -11 NG:bjs Page 1 of 5 17 WHEREAS, these goals will be promoted by eliminatindowering the minimum lot size requirement for the keeping of chickens, reducing setback requirements, prohibiting roosters, exempting certain household pets from regulation, simplifying the regulation of manure handling and removal, and removing or amending language and references from Chapter 7.08 of the Tukwila Municipal Code that are out of date or inconsistent, NOW, THEREFORE, THE CITY COUNCIL OF THE CITY OF TUKWILA, WASHINGTON, HEREBY ORDAINS AS FOLLOWS: Section 1. Tukwila Municipal Code (TMC) Section 7.08.030, "Small animals and fowl defined," Amended. Ordinance No. 232 §3, as codified at TMC Section 7.08.030, is hereby amended to read as follows: 7.08.030 Small animals and fowl defined. "Small animals and fowl," where used in this chapter means and includes rabbits, chinchillas, chickens, geese, ducks, turkeys and pigeons. Section 2. TMC Section 7.08.040, "Chinchillas, guinea pigs, hamsters, parakeets and pigeons," Amended. Ordinance No. 232 §3(a), as codified at TMC Section 7.08.040, is hereby amended to read as follows: 7.08.040 Animals kept as pets. Dogs, cats, guinea pigs, hamsters, ferrets, fish, parrots, parakeets and similar animals kept as household pets within a dwelling unit will not be subject to the limitations of this chapter. Dogs and cats are regulated by TMC Section 7.12. Section 3. TMC Section 7.08.050, "Rabbits, chickens, geese, ducks and turkeys," Amended. Ordinance No. 232 §3(b), as codified at TMC Section 7.08.050, is hereby amended to read as follows: 7.08.050 Roosters prohibited. The keeping of roosters within the City limits is prohibited. Section 4. TMC Section 7.08.070, "Number of livestock allowed," Amended. Ordinance No. 232 §5, as codified at TMC Section 7.08.070, is hereby amended to read as follows: 7.08.070 Number of livestock allowed. The number of horses, cows or cattle, sheep, goats or swine allowed on any given piece or parcel of property shall be regulated by the duly appointed Code Enforcement Officer of the City. W: Word Processing \Ordinances \Small animals and fowl regulations amended strike -thru 9 -7 -11 NG:bjs Page 2 of 5 i Section 5. TMC Section 7.08.100, "Minimum area for keeping," Amended. Ordinance No. 232 §8, as codified at TMC Section 7.08.100, is hereby amended to read as follows: 7.08.100 Minimum area for keeping animals. With the exception of chickens, no livestock, small animals or fowl shall be kept on any property within the City limits where the parcel does not contain a minimum of 10,000 square feet of area. N GChickens mays#afl be kept as an accessory to anv legal use regardless of the area of the DarcelGR aRV prepertv withi e—City Baits where the P a r_Gel rocs not GORta a M o 6 Jcuare feat of aFea Section 6. TMC Section 7.08.110, "Number of animals per area size," Amended. Ordinance No. 232 §9, as codified at TMC Section 7.08.110, is hereby amended to read as follows: 7.08.110 Number of animals per property area. Small animals and fowl shall be permitted in numbers as follows: 1. Twelve rabbits, twelve chinchillas, twelve pigeons or any combination of rabbits, chinchillas or pigeons, not to exceed a total of twelve collectively, for 10,000 square feet of property. 2. The number of rabbits, chinchillas or pigeons may be increased by 1 /10th for each additional 1,000 square feet of property. 3. Six geese, six ducks, six turkeys or any combination of geese, ducks or turkeys, not to exceed a total of six collectively for 10,000 square feet of property. 4. The number of geese, ducks or turkeys may be increased 1 /10th for each additional 1,000 square feet of property. 5. One chicken per every 1,000 square feet of property. 6. At no time shall the total number of small animals or fowl exceed a total of twelve for each 10,000 square feet of property. Section 7. TMC Section 7.08.120, "Distance from human habitation," Amended. Ordinance No. 232 §10, as codified at TMC Section 7.08.120, is hereby amended to read as follows: 7.08.120 Distance from human habitation. Enclosures for the housing of small animals and fowl shall be built and located not less than 10 feet from any place of human habitation and property line. The roaming area for the small animals and fowl shall be fenced and located not less than 10 feet from any adjacent place of human habitation. W: Word Processing \Ordinances \Small animals and fowl regulations amended strike -thru 9 -7 -11 NG:bjs Page 3 of 5 19 Section 8. TMC Section 7.08.150, "Manure removal," Amended. Ordinance No. 232 §13, as codified at TMC Section 7.08.150, is hereby amended to read as follows: 7.08.150 Animal waste and food waste. A. All enclosures, confinement areas, and /or open run areas shall be kept clean. Provision shall be made for the removal of animal waste and food waste so that the areas are kept free from infestation of insects, rodents or disease, as well as to prevent obnoxious or foul odors. Animal waste shall be properly disposed of and any accumulated animal waste must not be stored within the parcel setback area. Any storage of animal waste must not constitute a nuisance. B. Manure shall not be allowed to collect in any place where it can prejudicially affect any source of drinking water. C. Manure, when used as a fertilizer, must be plowed or spaded under within 24 hours after application. Section 9. TMC Section 7.08.160, "Enforcement," Amended. Ordinance No. 232 §14, as codified at TMC Section 7.08.160, is hereby amended to read as follows: 7.08.160 Enforcement. The Code Enforcement Officer for the City shall be authorized to enforce this chapter, unless otherwise provided. Section 10. TMC Section 7.08.180, "Exemptions," Amended. Ordinance No. 232 §16, as codified at TMC Section 7.08.180, is hereby amended to read as follows: 7.08.180 Exemptions. A. Residents may keep all animals legally owned and kept prior to the effective date of this ordinance, provided they do not constitute a nuisance. B. Any person, persons, firm or corporation who discontinues the keeping or reduces the number of livestock, small animals or fowl for a period of more than 90 days, or who sells or transfers his property, shall then become subject to all the provisions of this chapter. Section 11. Repealer. Ordinance No. 232 §15 relating to the issuance of permits for housing, §17 relating to fines for violations, and §18 relating to violations considered as separate offenses are hereby repealed. Section 15: The b uild ing F rintendent shall issue all permits for he using The GTT, CGTICfGITC�TILifT"f� Qc /�I� s mall animals and few B fildings must he npmnleted innl� ding "IV�.r�tAri. vfTf�TIA17 DrrTTQ�'l�7ri GVTTT�77C.0 1 manure pit within 60 days after issuonne of permit W: Word Processing \Ordinances \Small animals and fowl regulations amended strike -thru 9 -7 -11 NG:bjs Page 4 of 5 7 Section Any thereof, e punished by a f i Re not to eXGeed $100.00 or by i mpF i senment and impr offense. Section every day on wh i Gh a v of th erdiRanGe OGGUFS Section 12. Severability. If any section, subsection, paragraph, sentence, clause or phrase of this ordinance or its application to any person or situation should be held to be invalid or unconstitutional for any reason by a court of competent jurisdiction, such invalidity or unconstitutionality shall not affect the validity or constitutionality of the remaining portions of this ordinance or its application to any other person or situation. Section 13. Effective Date. This ordinance or a summary thereof shall be published in the official newspaper of the City, and shall take effect and be in full force five days after passage and publication as provided by law. PASSED BY THE CITY COUNCIL OF THE CITY OF TUKWILA, WASHINGTON, at a Regular Meeting thereof this day of 1 2011. ATTEST /AUTHENTICATED: Christy O'Flaherty, CMC, City Clerk APPROVED AS TO FORM BY: Shelley M. Kerslake, City Attorney Jim Haggerton, Mayor Filed with the City Clerk: Passed by the City Council: Published: Effective Date: Ordinance Number: W: Word Processing \Ordinances \Small animals and fowl regulations amended strike -thru 9 -7 -11 NG:bjs Page 5 of 5 21 22 City of Tukwila Community Affairs and Parks Committee COMMUNITY AFFAIRS AND PARKS COMMITTEE Meeting Minutes September 12, 2011 S: 00 p. m.; Conference Room #3 PRESENT Councilmembers: Verna Seal, Chair; Joe Duffie and De'Sean Quinn Staff: Shawn Hunstock, Nora Gierloff, and Kimberly Matej CALL TO ORDER: Committee Chair Seal called the meeting to order at 5:05 p.m. I. PRESENTATIONS No presentations. II. BUSINESS AGENDA A. Draft Ordinance: Regulations Regarding Livestock. Small Animals and Fowl At the August 22, 2011, Committee of the Whole (COW) meeting, Councilmembers were presented with the following changes to the City's ordinance regarding regulations relating to minimum lot size requirements for keeping chickens: Reduces minimum lot sizes from 10,000 square feet to 6,500 square feet Reduces property line and residence setbacks from 20 feet and 65 feet, respectively to 10 feet Allows one chicken per 1,000 square feet of parcel area Retains the limit of 12 small animals or fowl per 10,000 square feet of lot area A citizen request was made during that COW for the Council to reconsider lowering lots sizes further from 6,500 feet. Council sent the draft ordinance back to Community Affairs Parks Committee for further discussion after additional staff analysis. Staff returned with changes to the draft ordinance which eliminates minimum lot size requirements, and allows chicken as an accessory use. The other requirements outlined above remain in the ordinance. Committee Members requested that staff emphasize the requirements that will remain in effect in the information memo that is included in the City Council agenda packet. UNANIMOUS APPROVAL. FORWARD TO SEPTMBER 26 COW FOR DISCUSSION. III. MISCELLANEOUS Meeting adjourned at 5:16 p.m. Next meeting: Monday, September 26, 2011 5:00 p.m. Conference Room #3 1 Committee Chair Approval Mikes Mikest KAM Reviewed by NG. 23 C Tukwila City Council Committee of the Whole Minutes August 22, 2011 Page 2 of 5 CITIZEN COMMENTS David Puki, 3748 South 152 Street, acknowledged and thanked the "Save the Tukwila Pool" members in the audience. He explained the group of citizens came together for a good cause, and 62% of the residents voted in favor of the Metropolitan Park District (MPD). He feels the Tukwila Pool can thrive since the successful election, and the facility can move forward with repairs and upgrades and be enjoyed by the community and region. He asked the Council to create a citizen advisory group that will assist the MPD Board with successful operations now and in the future. Vanessa Zaputil, 15171 52 Avenue South, #5, stated last year a group of citizens asked the Council to form a MPD for the Tukwila Pool. Voters have approved the MPD, and she urged the Council to establish a citizen pool advisory group as soon as possible. She feels an advisory group would be beneficial to the Council, acting as the Board of Commissioners, to ensure fiscal responsibility of the MPD and aid in the success of the facility. Ms. Zaputil expressed her concern at the elimination of the preschool program at the Tukwila Community Center. She feels the Council should have known about the decision to eliminate such an important program, and she disagrees with cancellation of the program, especially with such a short notice. Preschool programs are extremely important for the children of the community, and she urged the Council to correct this situation. Jacque Carroll, 16241 49 Avenue South, feels the intersection of Klickitat Drive and the exit ramp from State Route 518 is very dangerous, and she asked the Council to research this area. She feels the City has control over this particular area, and she asked the Council to review all options available to make the intersection safer for the community. Council President Ekberg asked that the Transportation Committee review the accident history and other issues related to this particular intersection. Georgina Kerr, 3836 South 116' Street, thanked the Council for their support of the pool initiative. SPECIAL ISSUES Councilmember Seal asked the Council to consider moving Special Issues Item 4d regarding gambling activities to the September 12, 2011 Committee of the Whole meeting. It was her intention to have the new ordinance relating to gambling tax triggers be separate from a repeal of Section 2 of Ordinance No. 2323. The City Attorney has indicated she would need additional time to draft two separate ordinances. With the two separate ordinances, the Council can discuss the taxing structure now, and after the citizen advisory vote, the Council could address Ordinance No. 2323. COUNCIL CONSENSUS EXISTED TO REMOVE SPECIAL ISSUES ITEM 4D FROM THE AGENDA AND FORWARD THE DISCUSSION TO THE SEPTEMBER 12, 2011 COMMITTEE OF THE WHOLE MEETING. (Reference Item 4d below) X a. An ordinance regarding livestock, small animals and fowl. Councilmember Seal indicated this item was discussed at the Community Affairs and Parks Committee meeting on August 8, 2011. The committee members were unanimous in recommending approval. Nora Gierloff, Deputy Community Development Director, explained Tukwila Municipal Code Chapter 7.08, which regulates the keeping of small animals and livestock, has not been updated since its adoption in 1956. Citizens interested in urban agriculture and local food production have asked the Council to lower the minimum lot size for keeping chickens below the current standard of 10,000 square feet. Staff is suggesting 6,500 square feet as that is the minimum lot size in the City's single family zone. 25 Tukwila City Council Committee of the Whole Minutes August 22, 2011 Page 3 of 5 Stephen Reilly, 4377 158` Street, expressed his appreciation for the Council's consideration to update the outdated ordinance relating to chickens and the required lot size within the City. He supported the ban on roosters. He asked the Council to consider decreasing the lot size even more that the 6,500 square feet listed in the draft ordinance so the single family lots in Allentown would be allowed to own chickens. Most lots in the Allentown area are 4,500 square feet. Additionally, he would like the City to allow chickens within the pea patch /community garden areas within the City. By allowing chickens in these areas, residents in multi family housing could also enjoy the benefits of raising chickens. Ms. Gierloff clarified that the City's draft ordinance would not prevent individuals from keeping chickens at pea patch /community gardens, as long as the lot is at least 6,500 square feet. Additionally, many parts of Allentown were platted with 30 by 100 foot lots (or 3,000 square feet), and some lots were combined to make larger sites. The Councilmembers asked clarifying questions of staff and exchanged comments to include: The need for staff to conduct additional research relating to chickens in community gardens or a pea patch; the necessity of assessing impacts created by reducing the proposed minimum lot size to allow chickens; and the potential for rodents to become prevalent in and around chicken coops. COUNCIL CONSENSUS EXISTED TO HAVE THIS ITEM RETURN TO A FUTURE COMMUNITY AFFAIRS AND PARKS COMMITTEE MEETING. b. An Interlocal Agreement with King County for side sewer connection at Bow Lake Transfer Station. Councilmember Quinn indicated this item was discussed at the Utilities Committee meeting on August 9, 2011. The committee members were unanimous in recommending approval. 7:54 p.m. Councilmember Quinn recused himself from discussion on this item and left the Council Chambers. Bob Giberson, Public Works Director, explained the City is installing public sanitary sewer mains as part of the Southcenter Parkway Extension Project. King County has requested that the City provide an additional manhole and sewer piping to the edge of the right -of -way for the future side sewer connection to the Bow Lake Transfer Station, which is currently under construction. The interlocal agreement will reimburse the City for the $74,182.56 in charges for the Bow Lake side sewer connection. COUNCIL CONSENSUS EXISTED TO FORWARD THIS ITEM TO THE NEXT REGULAR MEETING. 7:58 p.m. Councilmember Quinn returned to the Council Chambers. c. A contract for 2011 Overlay and Repair Program construction management services. Councilmember Hernandez indicated this item was discussed at the Transportation Committee meeting on August 15, 2011. The committee members were unanimous in recommending approval. The contract is for construction management services for the 2011 Annual Overlay and Repair Program. Five consultant firms were short listed from the Consultant Works Roster, and Anchor QEA was chosen as the most qualified. The schedule for 2011 improvements include overlay for 3 road sections and Fort Dent's parking lot. COUNCIL CONSENSUS EXISTED TO FORWARD THIS ITEM TO THE NEXT REGULAR MEETING. 26 COUNCIL AGENDA SYNOPSIS I CAS NUMBFIR: 11 -092 AG E 'NDA I'1'I-;M Ti'n -j Council review 1 ITEM NO. 4.C. J ORIGINAL AGENDA DATE: 09/12/11 C,\ Discussion Motion Resolution Ordinance Bid xard Public Hearing Other Vltg Dale Mt g Date Nltg Date Mtg Date 10/3/11 Vltg Date Nltg Date Mtg Date S11O Council Mayor HR DCD ®.Finance Fire IT P &R Police PIV SPONSOR'S The City desires a way to address issues with both residential and commercial properties SUi\rMARY that present a consistent life /safety concern for residents, businesses and the City in general. The Council is being asked to consider the adoption of the chronic nuisance ordinance, which is one of several tools that can be used to address the above concerns. *A reference to RCW 66.24.010, Liquor Licenses Conditions and Restrictions has been incl ed on pag 3 of the ordinance b on Council discussion at th e 9/12/11 C.O.W. B) COQ Mtg. CA &P Cmte F &S Cmte Transportation Cmte Utilities Cmte Arts Comm. Parks Comm. Planning Comm. DATE: 9/7/11 COMMITTEE CHAIR: HOUGARDY RECOMMENDATIONS: SPONSOR /ADMIN. Police Department CONIN411"Tf_?1 Unanimous Approval; Forward to Committee of the Whole COST IMPACT FUND SOURCE ENI'I''.NDITURl Ri�:O UIRI?ll AMOUNT BUDGETED APPROPRIATION REQUIRED Fund Source: Conznnents: I MTG.DATEI RECORD OF COUNCIL ACTION 09/12/11 Forward to 9/26/11 Committee of the Whole, with added reference to RCW 09/26/11 10/3/11 MTG. DATE j ATTACHMENTS 09/12/11 I Informational Memo dated 8/30/11; Informational Memo dated 8/31/11; Chronic Nuisance Ordinance in Draft Form; Minutes from the Finance and Safety Committee meeting of 9/7/11 09/26/11 Informational Memo dated 8/30/11; Informational Memo dated 8/31/11; Chronic Nuisance Ordinance in Draft Form, with reference to RCW for Liquor Licenses Minutes from the Finance and Safety Committee meeting of 9/7/11 10/3/11 27 Initials Meetir,� Date Prepared by May revien, 09/12/11 MV 09/26/11 MV 10/03/11 MV ITEM INFORMATION STAFF SPONSOR: MIKE VILLA Chronic Nuisance Ordinance Council review 1 ITEM NO. 4.C. J ORIGINAL AGENDA DATE: 09/12/11 C,\ Discussion Motion Resolution Ordinance Bid xard Public Hearing Other Vltg Dale Mt g Date Nltg Date Mtg Date 10/3/11 Vltg Date Nltg Date Mtg Date S11O Council Mayor HR DCD ®.Finance Fire IT P &R Police PIV SPONSOR'S The City desires a way to address issues with both residential and commercial properties SUi\rMARY that present a consistent life /safety concern for residents, businesses and the City in general. The Council is being asked to consider the adoption of the chronic nuisance ordinance, which is one of several tools that can be used to address the above concerns. *A reference to RCW 66.24.010, Liquor Licenses Conditions and Restrictions has been incl ed on pag 3 of the ordinance b on Council discussion at th e 9/12/11 C.O.W. B) COQ Mtg. CA &P Cmte F &S Cmte Transportation Cmte Utilities Cmte Arts Comm. Parks Comm. Planning Comm. DATE: 9/7/11 COMMITTEE CHAIR: HOUGARDY RECOMMENDATIONS: SPONSOR /ADMIN. Police Department CONIN411"Tf_?1 Unanimous Approval; Forward to Committee of the Whole COST IMPACT FUND SOURCE ENI'I''.NDITURl Ri�:O UIRI?ll AMOUNT BUDGETED APPROPRIATION REQUIRED Fund Source: Conznnents: I MTG.DATEI RECORD OF COUNCIL ACTION 09/12/11 Forward to 9/26/11 Committee of the Whole, with added reference to RCW 09/26/11 10/3/11 MTG. DATE j ATTACHMENTS 09/12/11 I Informational Memo dated 8/30/11; Informational Memo dated 8/31/11; Chronic Nuisance Ordinance in Draft Form; Minutes from the Finance and Safety Committee meeting of 9/7/11 09/26/11 Informational Memo dated 8/30/11; Informational Memo dated 8/31/11; Chronic Nuisance Ordinance in Draft Form, with reference to RCW for Liquor Licenses Minutes from the Finance and Safety Committee meeting of 9/7/11 10/3/11 27 W City of Tukwila Jim Haggerton, Mayor INFORMATIONAL MEMORANDUM TO: Mayor Haggerton Finance and Safety Committee FROM: Shawn Hunstock, Interim City Administrator Mike Villa, Police Chief DATE: August 31, 2011 SUBJECT: Chronic Nuisance Ordinance ISSUE The City desires a way to address issues with both residential and commercial properties that present a consistent life /safety concern for residents, businesses and the City in general. The attached draft ordinance is one of several tools the City might use, several of which are discussed below, in addressing these issues. BACKGROUND Certain commercial and residential properties are responsible for a proportionately higher number of calls versus other properties. This means that Police officers are not available for other calls for service throughout the community. These properties also present a safety concern to neighboring residents and businesses. In addition, the properties with persistent issues can drive down the value of neighboring properties and act as a disincentive to future economic development and redevelopment of the area. DISCUSSION Chronic Nuisance Ordinance The attached draft chronic nuisance ordinance creates a process by which the City can identify properties that consistently present a life /safety concern to the community, ways for the property owner or tenant to take corrective action, and for the imposition of penalties and other remedies if the owner or tenant does not take steps to abate the chronic nuisance. The ordinance defines a chronic nuisance property as one which has: 1. Three or more nuisance activities in a sixty -day period; or 2. Seven or more nuisance activities in a twelve -month period; or 29 INFORMATIONAL MEMO Page 2 3. Two or more instances in a twelve -month period whereby a court determines probably cause exists that illegal possession, manufacture or distribution of a controlled substance occurred on the property. Nuisance activities are defined in the ordinance, and include such activities as drug related activity, assault, disorderly conduct, prostitution, permitting prostitution, soliciting prostitution and gang related activity. In situations where the chronic nuisance property is not owner occupied, the draft ordinance provides for notification of the owner of such property, and allows that individual or business to work with the Chief of Police in accomplishing the abatement requirements in the corrective action plan. The property owner also has other remedies available according to the terms of the lease agreement, and state and local laws, including eviction of the person in charge (the tenant) under certain circumstances. The draft ordinance gives owners and tenants the ability and time to abate nuisance activities on the property. Failure to take such corrective action could result in the following: 1. When appropriate, the City may summarily abate the nuisance activity and recovers the cost of such action from the person in charge; and 2. The owner or person in charge are each subject to civil infractions with a monetary penalty of $100 for the first violation, $175 for the second, and $250 for the third and subsequent violations; and 3. A Violation Notice and Order could be issued against the owner or person in charge for monetary penalties of $500 per day until compliance with the Order is achieved; and 4. Failure of the owner to cooperate with abatement of the nuisance activity would result in the owner being assessed a civil penalty of up to $25,000; and 5. The City Attorney may initiate court action to abate a chronic nuisance property, impose penalties under the chronic nuisance code, and seek any other relief authorized by law. The following is an estimated cost analysis for the police department for start-up and ongoing monitoring and enforcement of the chronic nuisance ordinance. The below figures include salary and benefits for the police department employees affected: Task Start-Up Tasks Task Outline Training Public Notifications Emplovee Hours Cost 80 4,480 40 1,840 Monitoring Enforcement* TOTAL (year one) 552 30,384 $36.704 WA2011 Info MemoslInfoMemo ChronicNuisance0rdinance.docx 30 INFORMATIONAL MEMO Page 3 *Tasks include various police department employees reviewing stats, reviewing police reports, meetings with police administration, meetings with city attorney's office, drafting letters of non compliance, meetings with the property owner, and monitoring compliance; the figure is based on addressing six properties during the first year the ordinance is in effect we anticipate that number dropping to four properties annually in the years following, the Start -Up Tasks no longer applicable and the number of hours pertaining to Monitoring Enforcement dropping to 368 for an estimated annual cost of $20,256. Call data is still being analyzed from the Police department, but it is estimated that twenty individual properties make up a disproportionate number (25 of the 600+ calls for service in 2010, that would fall under the chronic nuisance ordinance. At the rate identified above, it would take approximately five years to address those twenty properties. Pre litigation legal costs are estimated to range from $5,000 to $10,000 per case. If a case is litigated, the costs are estimated to be an additional $25,000 to $75,000 per case, depending on the particular circumstances of the case. Urban Overlay District and Plan The goal of the chronic nuisance ordinance is to give the owner and /or tenant time to abate the nuisance activity occurring on the property and remediate blight in the community. State law and the Tukwila Municipal Code give the City certain other tools in addressing blighted property. For instance, in the Urban Renewal Overlay District along Tukwila International Boulevard, one of the options available to the City is eminent domain. In accordance with the City's adopted urban renewal plan, use of eminent domain in the Urban Renewal Overlay District would allow the City to acquire, with compensation to the property owner, those properties where the current use or design standards are inconsistent with the City's vision for future development or redevelopment of properties along Tukwila International Boulevard in the overlay district. Community Challenge Grant At the August 22, 2011 Community Affairs Parks committee meeting approval was given to DCD to apply for a grant that would accomplish a number of things. Utilizing the grant funding, the City would amend the comprehensive plan, zoning codes, building codes, and infrastructure policies to achieve new development, redevelopment and revitalization of the TIB corridor. The goal would be for the area to be more economically viable and a sustainable neighborhood with more transit oriented development, expanded housing choices and a safer, more livable community. If awarded, the grant, among other things, would allow the City to assess current conditions along the TIB corridor and the capacity of utility providers to service the area for current and planned future uses. Citizen and business engagement, including W:12011 Info MemosllnfoMemo ChronicNuisance0rdinance.docx 31 INFORMATIONAL MEMO Page 4 underserved immigrant and minority populations, would be a goal during development of housing and other economic development options for Council to consider. The grant would also provide funding for an evaluation of the redevelopment potential for three "prototype" properties based on market financials. Economic Development Issues Properties which trigger the chronic nuisance ordinance provisions could potentially drive down the value of the subject property and those surrounding it, and may be a deterrent to future economic development or redevelopment. For that and other reasons, it is in the public's interest that the nuisance activities cease. In a memo included with this agenda packet, Derek Speck, Economic Development Manager, discusses the development opportunities along the Tukwila International Boulevard corridor, which is an area that the City could focus attention on using a new chronic nuisance ordinance. RECOMMENDATION Staff is recommending adoption of the chronic nuisance ordinance. Council input on other actions they would like staff to explore, if any, will determine additional future steps to be taken. The Council is being asked to consider this item at the September 12, 2011 Committee of the Whole meeting and subsequent September 19, 2011 regular Meeting. ATTACHMENT Draft Ordinance Informational Memorandum Derek Speck RQ011 Info MemoslinfoMemo ChronicNuisance0rdinance.docx 32 City of Tukwila Jim Haggerton, Mayor INFORMATIONAL MEMORANDUM TO: Interim City Administrator FROM: Economic Development Administrator DATE: August 30, 2011 SUBJECT: Economic Development Incentives to Redevelop Properties There are a number of economic development incentives that can encourage properties to redevelop. Following are descriptions of some of the main incentives. Which ones are most effective or appropriate will depend on many factors such as such as whether the property is blighted, is a nuisance, is located in the City's urban renewal area, or is likely to redevelop on its own in the current market conditions. Entitlement Process Assistance: The City could encourage the property owner to redevelop or sell the property by offering staff assistance through the entitlement and permitting process. Public Infrastructure: When private developers consider developing a property, they take into account the public infrastructure serving their property. If a property is already served by sidewalks, a road or alley, and sufficient utilities, it saves the developer money which makes development more feasible. In order to more directly use the public infrastructure as an incentive for redevelopment, the City could target redevelopment areas for needed upgrades in infrastructure. The City could also use a development agreement and negotiate the installation of these items if the developer takes action to redevelop the property. Local Improvement District: The City can fund public infrastructure by creating a local improvement district (LID). This is a mechanism in which properties that benefit from a public infrastructure project will pay for all or part of that project through an assessment that is added to their property tax bill. Local Revitalization Finance District: The City can designate a "revitalization area" and pay for public infrastructure within that area from existing property taxes. Multi family Property Tax Exemption: The City can designate an area in which it can exempt new construction of multi family apartments or condos from paying property tax for up to 12 years. Property Acquisition for Public Use: The City can purchase property for public use such as a municipal court, criminal justice center, emergency operations center, fire station, public parking, etc. If the property owner is unwilling to sell, the City can purchase the property through eminent domain proceedings. 33 INFORMATIONAL MEMO Page 2 Property Acquisition for Private Use: The City can purchase property and resell it to a developer. The seller must be willing unless the property is located within a designated "community renewal area" or the property is necessary for a "community renewal project In those cases the City can purchase the property through eminent domain, if necessary. In terms of purchasing property to be redeveloped for private use, there are a number of key factors to consider: Option to Purchase: It is not always necessary to purchase the property in order to get sufficient control to incentivize redevelopment. If the seller is willing, the City can purchase just the right to buy the property (an "option at a specified price. This would cost much less than actually purchasing the property. The City would then sell the option to a developer who could then purchase the property. If the City is unable to sell the option within a specified time frame, the option would expire and the City would have no further involvement with the property. Developer Selection Process: If the site is NOT in an urban renewal area, the City would most typically first acquire the property or option on the property and then select a developer. If the site IS in an urban renewal area, the City has more flexibility and can either select the property or developer first. In an urban renewal area, the City can generally reduce its financial risk by selecting a developer first and executing a sales agreement with the developer before the City purchases the property. Developer Selection Criteria: The City can select a developer based on criteria such as experience, financial capacity, and project concept or simply based on highest bid. Of course, highest bid only works if the City already owns the property or an option to purchase the property. Except for the multi family property tax exemption, local revitalization financing, or purchasing options on property, I have seen the City of Tukwila use all of the incentives described above. There are many pros and cons to consider with these incentives. If some look to be of interest, I can provide greater detail. If you have any questions, please let me know. 34 AN ORDINANCE OF THE CITY COUNCIL OF THE CITY OF TUKWILA, WASHINGTON, ADOPTING A NEW CHAPTER 8.27 ENTITLED "CHRONIC NUISANCE PROPERTIES;" AMENDING ORDINANCE NOS. 2333 §8 AND 2315 §1 (PART), AS CODIFIED AT TUKWILA MUNICIPAL CODE SECTION 5.04.110, TO INCLUDE BUSINESS LICENSE DENIAL OR REVOCATION FOR CHRONIC NUISANCE PROPERTIES; PROVIDING FOR SEVERABILITY; AND ESTABLISHING AN EFFECTIVE DATE. WHEREAS, RCW 35.22.280 empowers first class cities to define and abate nuisances and impose fines upon persons responsible for creating or allowing nuisances; and WHEREAS, RCW 35A.21.160 grants code cities all of the powers which any city of any class may have to the extent such laws are appropriate and not in conflict with the provisions specifically applicable to code cities; and WHEREAS, the Tukwila City Council finds that people should be able to enjoy ownership, use and possession of property without the negative impacts caused by chronic nuisance properties; and WHEREAS, some persons who own or control property in the City of Tukwila allow their properties to be used for illegal purposes, with the result that these properties have become chronic nuisance properties; and WHEREAS, the current provisions of the Tukwila Municipal Code (TMC) do not provide adequate tools for abating chronic nuisances resulting from the use of properties for illegal purposes; and WHEREAS, chronic nuisance properties present serious health, safety and welfare concerns and interfere with the quality of life, comfort and solitude of other persons residing in the neighborhood, and WHEREAS, chronic nuisance properties cause a financial burden upon the City by the numerous calls for service to the properties because of the illegal activities that repeatedly occur or exist on such properties; W: Word Processing \Ordinances \Chronic Nuisance Properties 9 -20 -11 RT:bjs Page 1 of 13 35 NOW, THEREFORE, THE CITY COUNCIL OF THE CITY OF TUKWILA, WASHINGTON, HEREBY ORDAINS AS FOLLOWS: Section 1. TMC Chapter 8.27 Adopted. TMC Chapter 8.27, "Chronic Nuisance Properties," is hereby established to read as follows: Chapter 8.27 CHRONIC NUISANCE PROPERTIES Sections: 8.27.010 Definitions 8.27.020 Violation 8.27.030 Investigation, Civil Infraction, and Violation Notice and Order 8.27.040 Time in Which to Comply 8.27.050 Owner Cooperation 8.27.060 Voluntary Correction Agreement and Limited Right to Enter Property 8.27.070 Appeal to Hearing Examiner 8.27.080 Penalties 8.27.090 Abatement by the City 8.27.100 Commencement of Action Enforcement 8.27.110 Burden of Proof 8.27.120 Additional Remedies 8.27.130 Suspension or Revocation of Business License 8.27.010 Definitions. For purposes of this chapter, the following words or phrases shall have the meaning prescribed below: A. "Abate" means to repair, replace, remove, destroy, or otherwise remedy a condition that constitutes a violation of this chapter by such means and in such a manner and to such an extent as the Chief of Police determines is necessary in the interest of the general health, safety and welfare of the community. B. "Chief of Police" means the Chief of Police or his or her designees. C. "Control' means the power or ability to direct or determine conditions, conduct, or events occurring on a property. D. "Chronic Nuisance Property" means: 1. A property on which 3 or more nuisance activities as described in TMC Section 8.27.010(E) exist or have occurred during any 60 -day period, or 7 or more nuisance activities have occurred during any 12 -month period, 2. A property which, upon a request for execution of a search warrant, has been the subject of a determination by a court 2 or more times within a 12 -month period that probable cause exists that illegal possession, manufacture or delivery of a controlled substance or related offenses as defined in RCW Chapter 69.50 has occurred on the property, or W: Word Processing \Ordinances \Chronic Nuisance Properties 9 -20 -11 RT:bjs Page 2 of 13 36 3. In the case of anv property on which an establishment that sells. imports, manufactures. or distributes alcohol is located. a property on which 3 or more "chronic illeqal activities" as defined by RCW 66.24.010(12) have occurred durinq anv 60 -day period, or 7 or more such activities have occurred durinq anv 12 -month period. E. "Drug Related Activity" means activity which constitutes a violation of chapter 69.41, 69.50, or 69.52 RCW. F. "Nuisance Activity" includes: 1. A "most serious offense" as defined in RCW 9.94A; 2. A "drug related activity" as defined in TMC Section 8.27.010(E); 3. Any of the following activities, behaviors or criminal conduct: a. Assault, Reckless Endangerment, as defined in RCW 9A.36; b. Stalking or Harassment, as defined in RCW 9A.46; c. Disorderly Conduct, as defined in TMC Section 8.70.010; d. Promoting, advancing or profiting from prostitution as defined in RCW e. Prostitution, as defined in RCW 9A.88.030; f. Permitting Prostitution, as defined in RCW 9A.88.090(1); g. Prostitution Loitering, as defined in TMC Section 8.50.040 h. Failure to Disperse, as defined in TMC Section 8.70.020; Weapons violations, as defined in TMC Chapter 8.10; j. Gang related activity, as defined in RCW 59.18.030(7). G. "Owner" means any person who, alone or with others, has title or interest in any property. H. "Person" means an individual, group of individuals, corporation, partnership, association, club, company, business trust, joint venture, organization, or any other legal or commercial entity or the manager, lessee, agent, officer or employee of any of them. I. "Person in Charge" of a property means the owner, lessee, tenant, occupant, agent, manager of a property, and /or any other person in actual or constructive possession of a property. J. "Property" means any land and that which is affixed, incidental or appurtenant to land, including but not limited to any business or residence, parking area, loading area, landscaping, building or structure or any separate part, unit or portion thereof. W: Word Processing \Ordinances \Chronic Nuisance Properties 9 -20 -11 RT:bjs Page 3 of 13 37 K. "RCW' means the Revised Code of Washington. L. "TMC" means Tukwila Municipal Code. 8.27.020 Violation. A. Any property within the City of Tukwila that is a chronic nuisance property as defined in TMC Section 8.27.010 is in violation of this chapter and subject to its remedies. B. It is the responsibility of all persons in charge to ensure that the provisions of this code are met on any property they own, possess, or control. Any persons in charge of a chronic nuisance property as defined in TMC Section 8.27.010 shall be in violation of this chapter and subject to its remedies. C. An owner who fails to comply with TMC Section 8.27.050 is in violation of this chapter and is subject to penalties pursuant to TMC Section 8.27.080. 8.27.030 Investigation, Civil Infraction, and Violation Notice and Order. A. Authority. Upon presentation of proper credentials, the Chief of Police may, with the consent of any person in charge, or with other lawful authority, enter any building or premises in order to perform the duties imposed by this chapter. B. Investigation. The Chief of Police may investigate any activity that he or she reasonably believes to be a nuisance activity as defined by TMC Section 8.27.010. C. Civil Infraction. If, after investigation, or after the complaint of residents or others, the Chief of Police has probable cause to believe the applicable standards or requirements of the Tukwila Municipal Code have been violated, the Chief of Police may issue a civil infraction citation in accordance with RCW 7.80, which is incorporated herein by this reference, upon the person(s) in charge. D. Violation Notice and Order. Alternatively, after investigation, or based upon the complaint of residents or others, the Chief of Police may serve a Violation Notice and Order upon the person(s) in charge. The Violation Notice and Order shall contain the following information: 1. A declaration that the Chief of Police has determined the property has become a chronic nuisance property and a concise description of the nuisance activities that exist or that have occurred. 2. What corrective action, if any, is necessary in order to remedy the nuisance activities. 3. A reasonable time for compliance. 4. A notice that the owner and other persons in charge of the property are subject to monetary penalties as set forth in TMC Section 8.27.080. 5. An explanation of the appeal process and the specific information required to file an appeal. W: Word Processing \Ordinances \Chronic Nuisance Properties 9 -20 -11 RT:bjs Page 4 of 13 i E. Service of a Violation Notice and Order. A Violation Notice and Order shall be served on the person(s) in charge by personal service, registered mail, or certified mail with return receipt requested, addressed to the last known address of such person. When a notice is issued pursuant to this section to a person in charge other than an owner or an owner's agent, who has permitted a property to become a chronic nuisance property, a copy of such notice shall also be served on the owner of the property. If, after a reasonable search and reasonable efforts are made to obtain service, the whereabouts of the person(s) is unknown or service cannot be accomplished and the Chief of Police makes an affidavit to that effect, then service of the notice upon such person(s) may be made by: 1. Publishing the notice once each week for two consecutive weeks in the City's official newspaper; and 2. Mailing a copy of the notice to each person named on the Violation Notice and Order by first class mail to the last known address if known or, if unknown, to the address of the property involved in the proceedings. F. Posting. A copy of the notice shall be posted at a conspicuous place on the property, unless posting the notice is not physically possible. G. Amendment. A Violation Notice and Order may be amended at any time in order to: 1. Correct clerical errors; or 2. Cite additional authority for a stated violation. 8.27.040 Time in Which to Comply. A. Civil Infraction Citations. Civil infraction citations will be issued and processed in accordance with RCW 7.80, which is incorporated herein by reference. The Tukwila Municipal Court shall have jurisdiction over all civil infraction citations issued under this chapter. B. Determination of Time for Compliance with Violation Notice and Order. Persons receiving a Violation Notice and Order shall rectify the nuisance activity identified within the time period specified by the Chief of Police pursuant to Section 8.27.030(D) of this chapter. C. Order Becomes Final Unless Appealed. Unless an appeal is filed with the Chief of Police for hearing before the Hearing Examiner in accordance with Section 8.27.070 of this chapter, the Violation Notice and Order shall become the final order of the Chief of Police. A copy of the notice may be filed and recorded with the King County Recorder. 8.27.050 Owner Cooperation. An owner who receives a copy of a violation notice and order pursuant to TMC Section 8.27.030(D) describing a chronic nuisance property permitted by a person in charge other than the owner or the owner's agent, shall promptly take all reasonable steps W: Word Processing \Ordinances \Chronic Nuisance Properties 9 -20 -11 RT:bjs Page 5 of 13 T requested in writing by the Chief of Police to assist in abatement of the nuisance property. Such reasonable steps may include, but are not limited to, the owner taking all acts and pursuing all remedies, including pursuing eviction of the person(s) in charge, that are (1) available to the owner pursuant to any lease or other agreement, and (2) consistent with state and local laws, including but not limited to RCW 59.18.580, the Victim Protection Limitation on Landlord's Rental Decisions. 8.27.060 Voluntary Correction Agreement and Limited Right to Enter Property. A. Applicability. While it is the City's desire to obtain voluntary correction pursuant to TMC Chapter 8.27, compliance is not a prerequisite for pursuing any of the other remedies for correction in TMC Chapter 8.27, or any remedies available in law or equity. This section may apply whenever the Chief of Police determines that a chronic nuisance exists. B. General. The Chief of Police may attempt to secure voluntary correction by contacting any person(s) in charge and explaining the violation and requesting correction. C. Voluntary Correction and Limited Right of Entry Agreement. A Voluntary Correction and Limited Right of Entry Agreement is a contract between the City and any person(s) in charge of the chronic nuisance property in which such person agrees to promptly take all lawful and reasonable actions, which shall be set forth in the agreement, to abate the nuisance activities within a specified time and according to specified conditions. A Voluntary Correction and Limited Right of Entry Agreement may be entered into between the City of Tukwila— acting through the applicable department director —and the person in charge for resolution of the violation. A Voluntary Correction and Limited Right of Entry Agreement shall be signed by the person(s) in charge and, if different, the owner, and may include the following: 1. The name and address of the person(s) in charge; 2. The street address or other description sufficient for identification of the building, structure, premises, or land upon or within which the violation has occurred or is occurring; 3. A description of the nuisance activities, 4. The necessary corrective action to be taken, and a date or time by which correction must be completed; 5. An agreement by the person(s) in charge that the City may inspect the premises as may be necessary to determine compliance with the Voluntary Correction and Limited Right of Entry Agreement; 6. An agreement by the person(s) in charge that the City may abate the nuisance and recover its costs and expenses and monetary penalties pursuant to this chapter from the person in charge if the terms of the correction agreement are not met; and W: Word Processing \Ordinances \Chronic Nuisance Properties 9 -20 -11 RT:bjs Page 6 of 13 iy 7. When a person in charge other than an owner or an owner's agent has permitted a property to be a chronic nuisance property, an agreement by the owner to promptly take all acts and pursue all remedies requested by the Chief of Police pursuant to TMC Section 8.27.050. 8.27.070 Appeal to Hearing Examiner. A. The person(s) incurring the penalty described in a Violation Notice and Order issued by the Chief of Police, pursuant to TMC Section 8.27.030(D), may obtain an appeal of the Notice by requesting such appeal within 10 calendar days after receiving or otherwise being served with the notice pursuant to TMC Section 8.27.030(E). When the last day of the period so computed is a Saturday or Sunday, or a Federal or City holiday, the period shall run until 4:30 PM the next business day. The request shall be in writing and include the applicable appeal fee. Upon receipt of the appeal request, the Chief of Police shall schedule an appeal hearing before the Hearing Examiner. Notice of the hearing shall be sent to the appellant and /or the person(s) named on the Violation Notice and Order under the procedures described in TMC Section 8.27.030(E), or as may be otherwise requested by the appealing party. B. The appeal fee for a Violation Notice and Order in an LDR zone shall be $100.00, and in all other zones shall be $200.00. C. At or after the appeal hearing, the Hearing Examiner may: 1. Sustain the Violation Notice and Order; 2. Withdraw the Violation Notice and Order; 3. Continue the review to a date certain for receipt of additional information; or 4. Modify the Violation Notice and Order, which may include an extension of the compliance date. D. The Hearing Examiner shall issue a written decision within 14 days of the date of the completion of the review and shall cause the same to be sent to the person(s) named on the Violation Notice and Order under the same procedures described in TMC Section 8.27.030(E) or as otherwise directed by the appealing party. E. The decision of the Hearing Examiner shall be final and conclusive unless appealed. In order to appeal the decision of the Hearing Examiner, a person with standing to appeal must file a land use petition, as provided in RCW 36.70C, within 21 days of the issuance of the Hearing Examiner's decision. The cost for transcription of all records ordered certified by the Superior Court for such review shall be borne by the appellant. 8.27.080 Penalties. A. Violations of the Tukwila Municipal Code. 1. Civil Infraction. Any person in charge who violates or fails to comply with the provision of this chapter may be issued a civil infraction pursuant to TMC Section W: Word Processing \Ordinances \Chronic Nuisance Properties 9 -20 -11 RT:bjs Page 7 of 13 41 8.27.030(C). Each civil infraction shall carry with it a monetary penalty of $100.00 for the first violation, $175.00 for a second violation of the same nature or a continuing violation, and $250.00 for a third or subsequent violation of the same nature or a continuing violation. 2. Violation Notice and Order. a. Any person in charge who violates or fails to comply with the provision of this chapter may, in the alternative, be issued a Violation Notice and Order that shall carry with it a cumulative monetary penalty of $500.00 per day from the date set for compliance until compliance with the Violation Notice and Order is achieved. b. In addition to any penalty that may be imposed by the City, the persons in charge shall be liable for all damage to public or private property arising from such violation, including the cost of restoring the affected area to its condition prior to the violation. c. The penalty imposed by this section under a Violation Notice and Order may be collected by civil action brought in the name of the City. The Chief of Police may notify the City Attorney of the name of any person subject to the penalty, and the City Attorney may, with the assistance of the Chief of Police, take appropriate action to collect the penalty, including but not limited to attachment of a lien to the property. d. The Chief of Police shall have the discretion to impose penalties in an amount lower than those set forth above. 3. An owner who fails to comply with TMC Section 8.27.040 is subject to a civil penalty of up to $25,000. B. Additional Relief. The Chief of Police may seek legal or equitable relief to enjoin any acts or practices and abate any condition that constitutes or will constitute a violation of the Tukwila Municipal Code. The remedies provided in TMC Chapter 8.27 are cumulative and shall be in addition to any other remedy provided by law. C. Continued Duty to Correct. Payment of a monetary penalty pursuant to TMC Chapter 8.27 does not relieve the person to whom the infraction or Violation Notice and Order was issued of the duty to correct the violation. 8.27.090 Abatement by the City. A. Abatement. The City may abate nuisance or code violations when: 1. The terms of the Voluntary Correction and Limited Right of Entry Agreement have not been met; or 2. A Violation Notice and Order has been issued and the required correction has not been completed by the date specified in the Violation Notice and Order, or 3. A written decision issued by the City's Hearing Examiner has not been complied with by the date specified in the written decision; or W: Word Processing \Ordinances \Chronic Nuisance Properties 9 -20 -11 RT:bjs Page 8 of 13 42 4. An action has been initiated in a court of competent jurisdiction pursuant to TMC Section 8.27.100, and the court has found that the property is a chronic nuisance property and issued an Order of Abatement for the property accordingly; or 5. The nuisances or code violations are subject to summary abatement as provided for in TMC Section 8.27.090(B). B. Summary Abatement. Whenever any nuisance or code violation causes a condition, the continued existence of which constitutes an immediate threat to the public health, safety or welfare or to the environment, the City may summarily and without prior notice abate the condition. Notice of such abatement, including the reason for it, shall be given to the person(s) in charge as soon as reasonably possible after the abatement. No right of action shall lie against the City or its agents, officers, or employees for actions reasonably taken to prevent or cure any such immediate threats, but neither shall the City be entitled to recover any costs incurred for summary abatement, prior to the time that actual notice of the same is provided to the person(s) in charge. C. Authorized Action by the City. Using any lawful means, the City may enter upon the subject property and may remove or correct the condition that is subject to abatement. Prior to or during such abatement, the City may seek such judicial process as it deems necessary to effect the removal or correction of such condition, including but not limited to obtaining an injunction or warrant of abatement. D. Interference. Any person who knowingly obstructs, impedes, or interferes with the City or its agents, or with the person responsible for the violation, in the performance of duties imposed by TMC Chapter 8.27, shall be guilty of a misdemeanor punishable by imprisonment not exceeding 90 days and a fine not exceeding $1,000.00. E. Recovery of Costs and Expenses. All costs incurred by the City during abatement of nuisance or code violations shall be billed to the person(s) in charge. Such costs may include, but are not limited to, the following legal and abatement expenses 1. "Legal expenses," for purposes of TMC Chapter 8.27, shall include but are not limited to the following: a. Personnel costs, both direct and indirect, including attorney's fees and all costs incurred by the City Attorney's office or its designee to abate nuisances and code violations. b. Actual and incidental expenses and costs incurred by the City in preparing notices, contracts, court pleadings, and all other necessary documents required to abate nuisances and code violations. c. All costs associated with retention and use of expert witness or consultants during the course of abatement. 2. "Abatement expenses," for purposes of TMC Chapter 8.27, shall include but are not limited to the following: W: Word Processing \Ordinances \Chronic Nuisance Properties 9 -20 -11 RT:bjs Page 9 of 13 43 a. Costs incurred by the City for preparation of notices, contracts, and related documents necessary to abate nuisance or code violations. b. All costs associated with inspection of the property and monitoring of said property consistent with orders of compliance issued by the City's Hearing Examiner or a court of competent jurisdiction. c. All costs incurred by the City for hauling, storage, disposal or removal of vegetation, trash, debris, dangerous structures or structures unfit for human habitation pursuant to the International Building Code and /or International Property Maintenance Code, potential vermin habitat or fire hazards, junk .vehicles, obstructions to the public right -of -way, and setback obstructions. d. All costs incurred by law enforcement or related enforcement agencies necessary to assist the City during abatement of nuisance or code violations. e. All relocation /assistance costs pursuant to TMC Chapter 8.46. F. Interest. All costs incurred by the City during abatement of nuisance and code violations may include interest in amount as prescribed by law. Interest shall start to accrue on the 30th day from mailing of the invoice pursuant to TMC Section 8.27.090.E.2.e. G. Lien Authorized. The City shall have a lien for any monetary penalty imposed, the cost of any abatement proceedings under TMC Chapter 8.27, and all other related costs including attorney and expert witness fees, against the real property on which the monetary penalty was imposed or any of the work of abatement was performed. 8.27.100 Commencement of Action Enforcement. Upon referral by the Chief of Police, the City Attorney may initiate an action in any court of competent jurisdiction to abate a chronic nuisance property, to impose penalties pursuant to this chapter, to seek alternative remedies under City or state laws and seek any other relief authorized by law. 8.27.110 Burden of Proof. A. In an action against the person(s) in charge to abate a chronic nuisance property or to recover penalties authorized by this chapter, the City shall have the burden of proof to show by a preponderance of the evidence that the property is a chronic nuisance property pursuant to this chapter. B. In an action against an owner to recover penalties authorized by TMC Section 8.27.070, the City shall have the additional burden to prove by a preponderance of the evidence that the owner failed to comply with TMC Section 8.27.040. Copies of police incident reports and reports of other City departments documenting nuisance activities shall be admissible in such actions. Additionally, evidence of a property's general reputation and the reputation of persons residing in or frequenting the property shall be admissible in such actions. W: Word Processing \Ordinances \Chronic Nuisance Properties 9 -20 -11 RT:bjs Page 10 of 13 ii 8.27.120 Additional Remedies. In addition to the remedies authorized by TMC Section 8.27.090, the court or Hearing Examiner may impose any or all of the following penalties on a person in charge of a chronic nuisance property: 1. Order the person in charge to immediately abate nuisance activity from occurring on the property. 2. Order that the Chief of Police shall have the right to inspect the property to determine if the court's orders have been complied with. 3. Impose a penalty of up to $500 per day against the person in charge for each day from the date the notice pursuant to TMC Section 8.27.030(D) was issued until the Chief of Police confirms the property is no longer a chronic nuisance property. 4. Make any other order that will reasonably abate nuisance activities from occurring on the property, including issuing an injunction to prevent the continued use of the property in a manner that encourages chronic nuisance activity or authorizing the City to take action to abate nuisance activities on the property and providing that the costs of such City action are to be paid for by the person in charge of the property. 5. If the person in charge is an owner and the court finds that this owner failed to take all reasonable steps requested in writing pursuant to TMC Section 8.27.050, the court may impose a civil penalty up to $25,000. 6. If, as part of its order abating a chronic nuisance property, the court orders the person in charge to cease renting or leasing a property, the court may order the person in charge to pay relocation in the amounts authorized by TMC Chapter 8.46 to any tenant who (1) must relocate because of the order of abatement, and (2) the court finds not to have caused or participated in nuisance activities at the property. For purposes of this section (8.27.120), the term "tenant" shall have the meaning as set forth in RCW 59.18.030(19). 8.27.130 Suspension or Revocation of Business License. In addition to any other remedy authorized by this chapter or other laws, the business license of any person in charge shall be revoked and a new license not issued for one year, pursuant to Title 5 of the Tukwila Municipal Code, upon: 1. A finding by the court that a property is a chronic nuisance property pursuant to this chapter, 2. Issuance of a Violation Notice and Order for a chronic nuisance property that is not timely remedied or appealed, or 3. A finding by the Hearing Examiner that a property is a chronic nuisance property. W: Word Processing \Ordinances \Chronic Nuisance Properties 9 -20 -11 RT:bjs Page 11 of 13 45 Section 2. TMC Section 5.04.110, "Denial Revocation," Amended. Ordinance Nos. 2333 §8 and 2315 §1 (part), as codified at TMC Section 5.04.110, are amended to read as follows: 5.04.110 Denial —Revocation. A. The Finance Director may deny any business license application pursuant to TMC Section 5.04.105. B. The Finance Director may deny or revoke any license under this chapter where one or more of the following conditions exist: 1. The licensee is in default of any fee, charges or amounts due and payable to the City of Tukwila, as outlined in the Tukwila Municipal Code or City policy. 2. The license was procured by fraud or by a false or misleading representation of fact in the application, or in any report or record required to be filed with the Finance Department. 3. The building, structure, equipment, operation or location of the business for which the license was issued does not comply with the requirements or standards of the Tukwila Municipal Code. 4. The license holder, his or her employee, agent, partner, director, officer or manager has knowingly violated any provisions of any chapter of the Tukwila Municipal Code, or has knowingly permitted, failed to prevent, or has otherwise allowed a violation of any of the provisions of any chapter of the Tukwila Municipal Code to occur on his or her business premises. 5. Conduct of the business would be in violation of any local, state or federal law, rule or regulation prohibiting the conduct of that type of business. 6. The property at which the business is located has been determined by a court to be a chronic nuisance property, a Violation Notice and Order for a chronic nuisance property has been issued and not timely remedied or appealed, or the Hearing Examiner has determined the property to be a chronic nuisance property, as provided in TMC Chapter 8.27. C. Upon determination that grounds for denial, suspension or revocation of a license exist, the Finance Director shall send the license holder a Notice of Denial, Suspension or Revocation. Grounds for denial, suspension or revocation include repetition of a violation of any provision of City policies or the Tukwila Municipal Code that has been accompanied by a warning notice of such violation or previous notice of the violation. The Notice of Denial, Suspension or Revocation shall set forth the grounds for and terms of the denial, suspension or revocation and a statement advising that the person may appeal from the Notice of Denial, Suspension or Revocation to the Hearing Officer, provided that the appeal is made in writing and filed with the Finance Director within 10 days from the date of receipt of the Notice of Denial, Suspension or Revocation, and that failure to so appeal shall constitute a waiver of all rights to any additional administrative hearing or determination on the matter. Upon issuance of such W: Word Processing \Ordinances \Chronic Nuisance Properties 9 -20 -11 RT:bjs Page 12 of 13 W Notice, the license is suspended or revoked and is no longer valid and current, unless appealed as provided in this chapter, in which case the effect of the suspension or the revocation is stayed pending the outcome of the appeal. D. Receipt of the Notice of Denial, Suspension or Revocation. The Notice of Denial, Suspension or Revocation shall be served upon the license holder either personally or by mailing a copy of such Notice by certified mail, postage prepaid, return receipt requested to such license holder to his or her last known address as provided in the license application. Alternatively, the Notice may be posted upon the premises where such license holder conducts his or her business, which is the subject of the denied or revoked license. Section 3. Corrections by City Clerk or Code Reviser. Upon approval of the City Attorney, the City Clerk and the code reviser are authorized to make necessary corrections to this ordinance, including the correction of clerical errors; references to other local, state or federal laws, codes, rules, or regulations; or ordinance numbering and section /subsection numbering. Section 4. Severability. If any section, subsection, paragraph, sentence, clause or phrase of this ordinance or its application to any person or situation should be held to be invalid or unconstitutional for any reason by a court of competent jurisdiction, such invalidity or unconstitutionality shall not affect the validity or constitutionality of the remaining portions of this ordinance or its application to any other person or situation. Section 5. Effective Date. This ordinance or a summary thereof shall be published in the official newspaper of the City, and shall take effect and be in full force five days after passage and publication as provided by law. PASSED BY THE CITY COUNCIL OF THE CITY OF TUKWILA, WASHINGTON, at a Regular Meeting thereof this day of 2011. ATTEST /AUTHENTICATED: Christy O'Flaherty, CMC, City Clerk APPROVED AS TO FORM BY: Shelley M. Kerslake, City Attorney Jim Haggerton, Mayor Filed with the City Clerk: Passed by the City Council: Published: Effective Date: Ordinance Number: W: Word Processing \Ordinances \Chronic Nuisance Properties 9 -20 -11 RT:bjs Page 13 of 13 47 .rim; Finance Safety Committee Minutes September 7, 2011- Paae 2 After discussion, Committee Members determined that they would like staff to return to Committee with a draft ordinance outlining and implementing Option 1 above. Staff anticipates returning with a draft in late October. Per Committee request, and additional discussion, staff will begin outreach with businesses this month to explain the potential change and invite public participation and comment. Committee Members emphasized the importance of outreach regarding business licenses and the RGRL. DRAFT ORDINANCE OF OPTION 1. RETURN TO COMMITTEE. C. DRAFT: Chronic Nuisance Ordinance Staff is returning to Committee with a draft ordinance regarding chronic nuisance properties, per the request of the City Council. The intent of the draft ordinance is to be used as a tool for the City to address issues with residential and commercial properties that consistently present life- safety concerns in the community. Chief Mike Villa distributed an updated draft ordinance at Committee which clarifies some definitions and RCW applicability. These changes will be included in the packet that goes forward to Council. Staff reviewed the following in relation to the draft ordinance: Definition of a chronic nuisance property Definitions of nuisance activities Y Opportunities for tenants and/or owners to abate nuisance activities The informational memo included in the Committee agenda packet also briefly outlined other options and mechanisms for addressing nuisance concerns within the community including the Urban Overlay District and Plan, the recently applied for Community Challenge grant (see Community Affairs Parks Committee minutes dated August 22, 2011) and other economic development issues. After a lengthy discussion regarding the definition and use of the term person in charge, staff will conduct an additional review of the document to ensure consistent use of the definition and term throughout the ordinance. Staff responded to questions regarding the funding resources that will be needed to enforce and implement this ordinance. UNANIMOUS APPROVAL. FORWARD TO SEPTEMBER 12 COW FOR DISCUSSION. D. Revenue Report: June Sales tax revenues continue to show a steady increase compared to the prior year. Receipts through June put the City at almost 10% above budgeted sales tax revenues year -to -date. Staff has renamed the report to Miscellaneous Revenue Report since it now includes gambling and admission tax revenues. Additionally, if one -time construction revenues are removed from the revenue total, the City is still ahead of budgeted revenues. INFORMATION ONLY. III. MISCELLANEOUS Meeting adjourned at 6:43 p.m. Next meeting: Tuesday, September 20, 2011 5:00 p.m. Conference Room #3 Y� Committee Chair Approval tvlin by nAM. Reviewed by SH. 50 COUNCIL AGENDA SYNOPSIS Initial r----------- ITEMNO. Meeting Date Prepared by Mayors renew CoAocikevien 09/26/11 JFS 4.D. ITEM INFORMATION I CAS NUMBI ;R: 11 -095 STAFF SPONSOR: JENNIFER F SANTA INES ORIGINAL AGENDA DA'Z'E: 09/26/11 AGrNDA I'Trm TrTI_,I_, Revenue Generating Regulatory License Non Profit Fee Analysis C\ rr( ;O R) Di.rcu.ision Motion Resolution Ordinance BidAward .Public'Hearino Other ll>g Da1c 09/26/11 l�lg Date tl�tg Date tl�tg Date tl7tg Date 111t,g Date Mtg Dale SI'>O Council Mayor HR DCD Finance Fire IT .P &R Police PW SPONSOR Finance Safety Committee members requested additional information from Staff SUMMARY regarding revenue impacts if the City removed the exemption status for non profit agencies with certain employee count thresholds. R� ?I'll ?WI?D I3Y COW Mtg. CA &P Cmte F &S Cmte Transportation Cmte Utilities Cmte Arts Comm. Parks Comm. Planning Comm. DATE: 09/20/11 COMMITTEE CHAIR: HOUGARDY RECOMMENDATIONS: SPONSOR /ADMIN. Finance Department COMMITTI -"I" Forward to Committee of the Whole for discussion COST IMPACT FUND SOURCE ]3X1'I;N�DI'TURISIRJ?OUIR:I�D AMOUNTBUDGETED APPROPRIATION REQUIRED $0 Fund Source: Comments: Addti revenue source for the City; amount dependent on Council recommendation MTG. DATE 09/26/11 MTG.DATEI ATTACHMENTS 09/26/11 1 informational Memorandum dated 9- 21 -11, revised after FS meeting Non Profit Analysis Spreadsheet Minutes from Finance and Safety Committee meeting of 9/20/11 were not available RECORD OF COUNCIL ACTION 51 52 City of Tukwila Jim Haggerton, Mayor INFORMATIONAL MEMORANDUM TO: Mayor Haggerton Finance and Safety Committee FROM: Jennifer Ferrer -Santa Ines, Senior Fiscal Coordinator DATE: September 22, 2011 (Attached spreadsheet revised after FS meeting) SUBJECT: Revenue Generating Regulatory License (RGRL) Information on Non Profit businesses ISSUE The Finance Department is responding to information requested by members of the Finance and Safety Committee regarding the non profit exemption status in the City and the impact on revenues should that exemption be lifted. BACKGROUND At the June 7, 2011 Finance and Safety Committee meeting, committee members requested additional information from staff regarding the revenue impacts if the City decided to remove the non profit exemption from businesses with certain employee count thresholds as follows: Impact on revenue upon removing the non profit exemption from businesses with more than 20 employees Impact on revenue upon removing the non profit exemption from businesses with more than 50 employees Impact on revenue upon removing the non profit exemption from businesses with more than 75 employees Impact on revenue upon removing the non profit exemption from businesses with more than 100 employees DISCUSSION Tukwila Municipal Code Section 5.62.040.A.1 provides an exemption from the RGRL fee of $55 per full -time equivalent employee for IRS 501(c)(3) tax exempt organizations, governmental entities, non profits operating for religious purposes, as well as civic groups, service clubs and social organizations. The second largest employer in the City is a tax exempt 501(c)(3) organization. There are currently 76 businesses in Tukwila operating under a non profit exemption employing over 4,000 employees. Not including governmental agencies, if all of the businesses who qualified for a non- profit exemption had paid the RGRL fee, the City would have received over $146,000. 53 INFORMATIONAL MEMO Page 2 There are 52 businesses with counts of less than 20 full -time equivalent employees. If these businesses were to be assessed the RGRL fees, it would generate approximately $14,000 in revenues to the City. Of the nine non profit employers in Tukwila with more than 20 but less than 50 full -time equivalent employees, it could produce over $15,000 in revenue from additional RGRL fees. One organization having over 50 but less than 75 full -time equivalent employees would create $3,800 in additional revenue from RGRL assessed fees. There are two governmental entities having over 75 full -time equivalent employees, however, they are excluded from this analysis. There are two Tukwila businesses with over 100 full -time equivalent employees which could generate approximately $114,000 in additional City revenue from RGRL fees. RECOMMENDATION This item is for information only. No recommendation on changes to the RGRL ordinance is made at this time. Any proposed changes by committee members will be incorporated into a future agenda item for the Finance and Safety Committee. ATTACHMENT Non-Profit Analysis Spreadsheet (Updated to exclude governmental agencies at the request of the FS Committee) WA2011 Info Memos\NonProfitRGRL.doc 54 ca UX 115 C j -6 9 Noco N 0 ww fu ca ,2 E W q YE m ua es 4A 4T y fl LL 55 r fn fY fl E c 7 c t r z as v 50 rtr (D E r s w c< r E �5 Z C, Q 35 4 zo t m 5 E u Z r Z E a ILI �E �T z 1p V E 0 c Lj F 2 2 2 0 o i o q YE m ua es 4A 4T y fl LL 55 56 COUNCIL AGENDA SYNOPSIS Initials ITEMNO. Meeting Date Prepared by Mayor's review Council review 09/26/11 PMT/ 10/03/11 PM i 4.E. ITEM INFORMATION ICAS NUMBI-R: 11 -096 S TAFF SPONSOR: PEGGY MCCARTHY ORIGINAL AGI -,NDA DATE 09/26/11 AGI I ;NrTTTLr. Limited General Obligation Bonds 2003 Refunding CxriI D1,16-ilosion Motion Resolution Ordinance Bid.+Pard Public Hearing ❑Other lltg Date 09126111 111 g Date 10103111 Altg Dale 117tg Date 111tq Date Altg Date Mtg Date SPONSOR Council lklayor HR DCD Finance Fire IT P6-R Polic•e PIY/ SPONSOR'S The City issued $12,050,000 of limited tax general obligation bonds in 2003 to finance Sunrn�,vzY arterial street improvements and the construction of the golf course clubhouse. The proposed refunding would defease the bonds outstanding at December 1, 2013, the earliest call date. The savings from the refunding is estimated at $354,651.95 or 4.878 of the refunded bonds with $281,442.17 realized from the arterial street fund portion of the bond issue and $136,209.78 realized from the golf course portion of the bond issue. S RI,,VII,WI,D BY COW Mtg. CA &P Cmte F &S Cmte Transportation Cmte I Utilities Cmte Arts Comm. Parks Comm. Planning Comm. DATE: 09/20/11 COMMITTEE CHAIR: KATHY HOUGARDY RECOMMENDATIONS: SPONSOR /ADMIN. Finance Co mN- I"ITI" ;h; For Discussion; Forward to Committee of the Whole COST IMPACT FUND SOURCE EXPI ,NDI'I'URI? Rl,c )t llZI ;D AMOUNT BUDGETED APPROPRIATION REQUIRED $0 $0.00 $0 Fund Source: Corrnnenlss. MTG. DATE 09/26/11 10/03/11 MTG. DATE 09/26/11 10/03/11 RECORD OF COUNCIL ACTION ATTACHMENTS Informational Memorandum dated 09/14/11; revised 9/21/11 after FS Meeting Draft Bond Refunding Ordinance Summary of Refunding Results Proposed Refunding of 2003A LTGO Bonds Summary of Refunding Results Proposed Refunding of 2003A LTGO Bonds Street only Minutes from the Finance and Safety Committee Meeting of 9/20/11 were not available 57 rowil plej City of Tukwila Jim Haggerton, Mayor INFORMATIONAL MEMORANDUM TO: Mayor Haggerton Finance Safety Committee FROM: Peggy McCarthy, Acting Finance Director DATE: September 14, 2011 (Revised September 21, 2011 after FS Meeting new text is underlined) SUBJECT: Refunding of Limited Tax General Obligation Bonds 2003 ISSUE Approve the refunding of Limited Tax General Obligation Bonds 2003. BACKGROUND The City issued $12,050,000 of limited tax general obligation bonds in 2003 to finance Arterial Street Fund -104 capital improvements, the South Park Bridge transfer and various other projects, and to finance the construction of the golf course clubhouse. Of the total issue, $6,277,500 was allocated to the Arterial Street Fund 104 and $5,772,500 was allocated to the Golf Course Fund 411. The outstanding balance of these bonds is currently $8,930,000 with $5,691,175 owing on the arterial street allocation and $3,238,825 owing on the golf course allocation. Since these bonds cannot be called, or redeemed, until December 1, 2013, the refunding bonds would defease, or set aside sufficient funds from the refunding proceeds, to pay -off the bonds remaining at December 1, 2013. At December 1, 2013, $7,270,000 of the bond issue will be outstanding with $4,633,241 of the arterial street allocation outstanding and $2,636,759 of the golf course allocation outstanding. If the bonds are refunded, the new bonds would not be available for early redemption until December 1, 2022. The net benefit to the Citv of this refundina is estimated at $354.651 with the Arterial Street Fund portion receivinq $218.442.17 of the savinas and the Golf Course Fund receivina $136.209.78 of the savinas. DISCUSSION The City will benefit financially by refunding these bonds. If early redemption of the golf course bond allocation is being considered, the arterial street portion of the bond issue could be refunded now and the golf course portion of the bond issue could be redeemed on December 1, 2013, the earliest call date. The outstanding balance of the golf course portion of the bond issue will be $2,636,759 on December 1, 2013. The Citv's financial advisor has prepared a "Summary of Refundina Results" analvsis that demonstrates the financina structure and savinas if the refundina includes both the Arterial Street Fund and the Golf Course Fund portions of the bond issue. A similar analvsis is provided that Provides the financial information for a refundina that includes only the Arterial Street Fund Portion of the bond issue. Both of these analvses are included as attachments to this memo. W \2011 Info Memos \Refunding of GO Bonds 2003 Funds 209 411 REVISEd for COW.docx 59 INFORMATIONAL MEMO Page 2 RECOMMENDATION The Council is being asked to approve the Refunding of the 2003 General Obligation bonds and consider this item at the September 26, 2011 Committee of the Whole meeting and the subsequent October 3, 2011 Regular Meeting. ATTACHMENTS -Draft of bond ordinance. Summary of Refunding Results Proposed Refundina of 2003A LTGO Bonds Summary of Refundinq Results Proposed Refundina of 2003A LTGO Bonds, Refunds Street portion only Revised pursuant to discussion at the September 19 Finance and Safety Committee meeting and updated information obtained thereafter. WA2011 Into Memos\Refunding of GO Bonds 2003 Funds 209 411 REVISEd for COW.docx 60 I Ail s r AN ORDINANCE OF THE CITY COUNCIL OF THE CITY OF TUKWILA, WASHINGTON, RELATING TO CONTRACTING INDEBTEDNESS; PROVIDING FOR THE ISSUANCE, SALE AND DELIVERY OF NOT TO EXCEED $8,000,000 PAR VALUE OF LIMITED TAX GENERAL OBLIGATION REFUNDING BONDS, 2011, TO PROVIDE THE FUNDS WITH WHICH TO CARRY OUT AN ADVANCE REFUNDING OF THE CALLABLE PORTION OF THE CITY'S LIMITED TAX GENERAL OBLIGATION BONDS, SERIES 2003A, AND TO PAY THE ADMINISTRATIVE COSTS OF THE REFUNDING AND THE COSTS OF ISSUANCE AND SALE OF THE BONDS; AUTHORIZING THE EXECUTION OF AN AGREEMENT WITH U.S. BANK NATIONAL ASSOCIATION, AS REFUNDING TRUSTEE; PROVIDING FOR THE CALL, PAYMENT AND REDEMPTION OF THE OUTSTANDING BONDS TO BE REFUNDED; FIXING CERTAIN TERMS AND COVENANTS OF THE BONDS, AND DELEGATING THE RESPONSIBILITY FOR CERTAIN OTHER FINAL TERMS OF THE BONDS; PROVIDING FOR RELATED MATTERS; PROVIDING FOR SEVERABILITY; AND ESTABLISHING AN EFFECTIVE DATE. WHEREAS, pursuant to Ordinance No. 2027, the City heretofore issued the 2003A Bonds, and by that ordinance reserved the right to redeem the 2003A Bonds prior to their maturity on December 1, 2013, at a price of par plus accrued interest to the date fixed for redemption; and WHEREAS, there are presently outstanding $7,270,000 par value of 2003A Bonds maturing on December 1 of each of the years 2014 through 2021, inclusive, and 2023, and bearing various interest rates from 3.95% to 4.65% (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 limited tax general obligation refunding bonds authorized herein 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; and .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 bearing interest and maturing at such time or times as necessary to accomplish the refunding as W: Word Processing \Ordinances\2003 Bond Refunding 9 -22 -2011 PM:mrh Page 1 of 18 61 aforesaid be purchased out of a portion of the proceeds of the Bonds and other money of the City, if necessary; and WHEREAS, the City Council deems it to be in the best interests of the City to issue and sell the Bonds to pay the cost of carrying out the Refunding Plan; NOW, THEREFORE, THE CITY COUNCIL OF THE CITY OF TUKWILA, WASHINGTON, HEREBY ORDAINS AS FOLLOWS: Section 1. Definitions. As used in this ordinance, the following words shall have the following meanings: "2003A Bonds" means the City's $9,850,000 par value Limited Tax General Obligation Bonds, Series 2003A, issued for the purpose of providing funds with which to reimburse itself for a part of the cost of transferring certain property between the City and King County, to pay or reimburse itself for a part of the cost of making various arterial street improvements, to redeem the City's outstanding Limited Tax General Obligation Bond Anticipation Note, 2000 (Foster Golf Course) for other City purposes, and to pay the costs of issuance of the Series 2003A Bonds. "Acquired Obligations" means those United States Treasury Certificates of Indebtedness, Notes, and Bonds -State and Local Government Series and other direct, noncallable obligations of the United States of America purchased to accomplish the refunding of the Refunded Bonds as authorized by this ordinance. "Authorized Denomination" means $5,000 or any integral multiple thereof within a maturity. "Beneficial Owner" means the owner of any beneficial interests in the Bonds. "Bond Purchase Contract" means a purchase contract presented to the City by the Underwriter and offering to purchase the Bonds under the terms and conditions provided therein. "Bond Fund" means the Limited Tax General Obligation Refunding Bond Fund, 2011, created by this ordinance for the payment of the Bonds. "Bond Register" means the books or records maintained by the Bond Registrar for the purpose of identifying ownership of the Bonds. "Bond Registrar" means the Fiscal Agent. "Bonds" means not to exceed $8,000,000 par value Limited Tax General Obligation Refunding Bonds, 2011, of the City issued pursuant to and for the purposes provided in this ordinance. "City" means the City of Tukwila, Washington, a municipal corporation duly organized and existing under the laws of the State. W: Word Processing \Ordinances\2003 Bond Refunding 9 -22 -2011 PM:mrh Page 2 of 18 M "City Council" means the governing body of the City, acting in its legislative capacity. "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. "Finance Director" means the Finance Director of the City or the successor officer. "Fiscal Agent" means the fiscal agent of the State, as the same may be designated by the State from time to time. "Letter of Representations" means the Blanket Issuer Letter of Representations dated October 18, 1999, between the City and DTC, as it may be amended from time to time. "MSRB" means the Municipal Securities Rulemaking Board. "Owners" means, without distinction, the Registered Owner(s) and the Beneficial Owner(s). "Refunded Bonds" means the outstanding Limited Tax General Obligation Bonds, Series 2003A, of the City maturing in the years 2014 through 2021, inclusive, and in 2023, issued pursuant to Ordinance No. 2027, the refunding of which has been provided for by this ordinance. "Refunding Plan" means: (a) the placement of sufficient proceeds of the Bonds which, with other money of the City, if necessary, will acquire the Acquired Obligations to be deposited, with cash, if necessary, with the Refunding Trustee; (b) the payment of the principal of and interest on the Refunded Bonds when due up to and including December 1, 2013, and the call, payment, and redemption on December 1, 2013, of all of the then outstanding Refunded Bonds at a price of par; and (c) the payment of the costs of issuing the Bonds and the costs of carrying out the foregoing elements of the Refunding Plan. "Refunding Trust Agreement" means a Refunding Trust Agreement between the City and the Refunding Trustee substantially in the form of that which is on file with the City Clerk and by this reference incorporated herein. "Refunding Trustee" means U.S. Bank National Association of Seattle, Washington, serving as trustee or escrow agent or any successor trustee or escrow agent. W: Word Processing \Ordinances\2003 Bond Refunding 9 -22 -2011 PM:mrh Page 3 of 18 63 "Registered Owner" means the person in whose name a Bond is registered on the Bond Register. For so long as the City utilizes the book —entry system for the Bonds under the Letter of Representations, Registered Owner shall mean DTC. "Registration Ordinance" means City Ordinance No. 1338 establishing a system of registration for the City's bonds and other obligations. "Rule 15c2 -12" means Rule 15c2 -12 promulgated by the SEC under the Securities Exchange Act of 1934, as amended. "SEC" means the United States Securities and Exchange Commission. "State" means the State of Washington. "Term Bonds" means those Bonds designated as such, with the maturity date or dates identified in the maturing in the Bond Purchase Contract. "Undertaking" means the continuing disclosure agreement set forth in Section 17 of this ordinance. "Underwriter" means Seattle- Northwest Securities Corporation of Seattle, Washington. Section 2. Recitals and Findings. 1. Pursuant to Ordinance No. 2027, the City heretofore issued the 2003A Bonds, and by that ordinance reserved the right to redeem the 2003A Bonds prior to their maturity on December 1, 2013, at a price of par plus accrued interest to the date fixed for redemption. 2. There are presently outstanding $7,270,000 par value of 2003A Bonds maturing on December 1 of each of the years 2014 through 2021, inclusive, and 2023, and bearing various interest rates from 3.95% to 4.65% (the "Refunded Bonds 3. After due consideration, it appears to the City Council that the Refunded Bonds may be refunded by the issuance and sale of the limited tax general obligation refunding bonds authorized herein 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. 4. 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 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 other money of the City, if necessary. W: Word Processing \Ordinances\2003 Bond Refunding 9 -22 -2011 PM:mrh Page 4 of 18 .M i 5. The City Council deems it to be in the best interests of the City to issue and sell the Bonds to pay the cost of carrying out the Refunding Plan. Section 3. Debt Capacity. The assessed valuation of the taxable property within the City as ascertained by the last preceding assessment for City purposes for the calendar year 2011 is $4,775,732,512. A. The City has outstanding general indebtedness as follows: (i) Limited tax general obligation bonds and leases outstanding in the principal amount of $22,755,814 (excluding the Refunded Bonds), which is incurred within the limit of up to 1' /z% of the value of the taxable property within the City permitted for general municipal purposes. (ii) No unlimited tax general obligation bonds for capital purposes only. B. The amount of indebtedness authorized by this ordinance is an amount not to exceed $8,000,000 and is issued within the limitation permitted for general municipal purposes without a vote. Section 4. Purpose and Authorization of Bonds. The City shall borrow money on the credit of the City and issue negotiable limited tax general obligation refunding bonds evidencing that indebtedness in the amount of not to exceed $8,000,000 to finance the cost of the Refunding Plan and to pay the costs of issuance and sale of the Bonds. Section 5. Description of Bonds. The Bonds shall be called the City of Tukwila, Washington, Limited Tax General Obligation Refunding Bonds, 2011. The Bonds shall be issued in the aggregate principal amount of not to exceed $8,000,000; shall be dated their date of initial delivery to the Underwriter; shall be in Authorized Denominations; and shall be numbered separately in the manner and with any additional designation as the Bond Registrar deems necessary for purposes of identification. The Bonds 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 1, 2012, to the maturity or earlier redemption of the Bonds; and shall mature or be subject to mandatory redemption on December 1 in years and amounts and bear interest at the rates per annum as set forth in the Bond Purchase Contract, except that no Bonds shall mature later than December 1, 2023. The interest rate or rates and the maturity schedule, including the designation of Term Bonds, if any, shall be set forth in the Bond Purchase Contract consistent with Section 18; however, the true interest cost for the Bonds shall not exceed a rate of 3.00 Section 6. Bond Registrar; Registration and Transfer of Bonds. A. Registration of Bonds. The Bonds shall be issued only in registered form as to both principal and interest and shall be recorded on the Bond Register. W: Word Processing \Ordinances\2003 Bond Refunding 9 -22 -2011 PM:mrh Page 5 of 18 65 B. Bond Registrar. 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 Register shall contain the name and mailing address of the Registered Owner of each Bond and the principal amount and number of each of the Bonds held by each Registered Owner. The Bond Registrar is authorized, on behalf of the City, to authenticate and deliver Bonds transferred or exchanged in accordance with the provisions of the Bonds and this ordinance, to serve as the City's paying agent for the Bonds and to carry out all of the Bond Registrar's powers and duties under this ordinance and City's Registration 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 either a Registered or Beneficial 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 Beneficial Owners. Bonds surrendered to the Bond Registrar may be exchanged for Bonds in any Authorized Denomination of an equal aggregate principal amount and of the same interest rate and maturity. Bonds may be transferred only if endorsed in the manner provided thereon and surrendered to the Bond Registrar. Any exchange or transfer shall be without cost to the owner or transferee. The Bond Registrar shall not be obligated to exchange or transfer any Bond during the 15 days preceding any principal payment or redemption date. C. DTC and the Book Entry System. The Bonds initially shall be registered in the name of Cede Co., as the nominee of DTC. The Bonds so registered shall be held in fully immobilized form by DTC as depository in accordance with the provisions of 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 Beneficial Owners. 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 appointed by the City or such substitute W: Word Processing \Ordinances\2003 Bond Refunding 9 -22 -2011 PM:mrh Page 6 of 18 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 7. 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 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 Tukwila, Washington, Limited Tax General Obligation Refunding Bonds, 2011, described in the Bond Ordinance." 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 manual or 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 manual or 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 8. Payment of Bonds. Both principal of and interest on the Bonds shall be payable in lawful money of the United States of America. 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. If the Bonds cease to be in book entry-only form, interest on the Bonds shall be paid by checks or drafts of the Bond Registrar mailed on the interest payment date to the W: Word Processing \Ordinances\2003 Bond Refunding 9 -22 -2011 PM:mrh Page 7 of 18 67 Registered Owners at the addresses appearing on the Bond Register on the 15th day of the month preceding the interest payment date or by electronic transfer on the interest payment date. The City shall not be required to make electronic transfers except to a Registered Owner of Bonds pursuant to a request in writing (and at the sole expense of that Registered Owner) received at least 10 days before an 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. Section 9. Redemption Provisions and Open Market Purchase of Bonds. A. Optional Redemption. The Bonds maturing in the years 2012 through 2021, 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, 2022, prior to their stated maturity dates at any time on or after December 1, 2021, 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. B. Mandatory Redemption. Bonds designated in the Bond Purchase Contract as Term Bonds, if not redeemed under the optional redemption provisions set forth above or purchased in the open market under the provisions set forth below, shall be called for redemption at par plus accrued interest on December 1 in years and amounts as set forth in the Bond Purchase Contract. If the City redeems under the optional redemption provisions, purchases in the open market or defeases Term Bonds, the par amount of the Term Bonds so redeemed, purchased or defeased (irrespective of their actual redemption or purchase prices) shall be credited against one or more scheduled mandatory redemption amounts for those Term Bonds. The City shall determine the manner in which the credit is to be allocated and shall notify the Bond Registrar in writing of its allocation prior to the earliest mandatory redemption date for that maturity of Term Bonds for which notice of redemption has not already been given. C. Partial Redemptions. Portions of the principal amount of any Bond, in any Authorized Denomination, 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, a new Bond (or Bonds, at the option of the Registered Owner) of the same maturity and interest rate in any Authorized Denomination in the aggregate principal amount remaining unredeemed. D. Open Market Purchase. The City further reserves the right and option to purchase any or all of the Bonds in the open market at any time at any price acceptable to the City plus accrued interest to the date of purchase. E. Selection of Bonds for Redemption. If fewer than all of the outstanding Bonds within a maturity are to be redeemed prior to maturity, selection of Bonds for redemption shall be randomly within a maturity in such manner as the Bond Registrar shall determine. 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. W: Word Processing \Ordinances\2003 Bond Refunding 9 -22 -2011 PM:mrh Page 8 of 18 i F. Cancellation of Bonds. All Bonds purchased or redeemed under this section shall be canceled. G. Notice of Redemption. 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 unless waived by any Registered Owner of the Bonds to be redeemed, the City shall cause notice of any intended redemption of Bonds to be given by the Bond Registrar not less than 20 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 Registered or Beneficial Owner of any Bond. 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. In addition, the redemption notice shall be mailed or sent electronically within the same period to the MSRB, consistent with the Undertaking, 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 Finance Director shall determine, but these additional mailings shall not be a condition precedent to the redemption of Bonds. H. Effect of Redemption. Interest on Bonds called for redemption shall cease to accrue on the date fixed for redemption, except in the case of a rescinded optional redemption as described above, or unless the Bond or Bonds called are not redeemed when presented pursuant to the call. I. Failure To Redeem Bonds. If any Bond is not redeemed when properly presented at its maturity or date set for redemption, 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 date set for redemption 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 Fund and the Bond has been called for payment by giving notice of that call to the Registered Owner. Section 10. Pledge of Taxes. For as long as any of the Bonds are outstanding, the City irrevocably pledges to include in its budget and levy taxes annually, within the constitutional and statutory tax limitations provided by law without a vote of the electors of the City, on all of the taxable property within the City in an amount sufficient, together with other money legally available and to be used therefor, to pay when due the W: Word Processing\Ordinances\2003 Bond Refunding 9 -22 -2011 PM:mrh Page 9 of 18 M principal of and interest on the Bonds. 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 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 Obligations. A sufficient amount 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. 2027 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 particularly described in Exhibit A attached to the Refunding Trust Agreement between the City and the Refunding Trustee, but are subject to substitution as set forth below. Any Bond proceeds or other money deposited with the Refunding Trustee not needed to purchase the Acquired Obligations and provide a beginning cash balance, if any, and pay the costs of issuance of the Bonds shall be returned to the City at the time of delivery of the Bonds to the initial purchaser thereof and deposited in the Bond Fund to pay interest on the Bonds on the first interest payment date. C. Substitution of Acquired Obligations. Prior to the purchase of any Acquired Obligations 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, (a) 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 (b) such substitution shall not impair the timely payment of the amounts required to be paid by the Refunding Plan, as verified by a nationally recognized independent certified public accounting firm. After the purchase of-the Acquired Obligations by the Refunding Trustee, the City reserves the right to substitute therefor cash or 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 W: Word Processing \Ordinances\2003 Bond Refunding 9 -22 -2011 PM:mrh Page 10 of 18 FEB 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 tax purposes and that such disposition and substitution or purchase is in compliance with the statutes and 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 Refunding Plan. The Refunding Trustee is authorized and directed to purchase the Acquired Obligations (or Substitute Obligations) and to make the payments required to be made by the Refunding Plan from the Acquired Obligations (or Substitute Obligations) and money deposited with the Refunding Trustee pursuant to this ordinance. All Acquired Obligations (or Substitute Obligations) and the money deposited with the Refunding Trustee and any income therefrom shall be held irrevocably, invested and applied in accordance with the provisions of Ordinance No. 2027, 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, certification fees, bond counsel's fees, and other related expenses, shall be paid out of the proceeds of the Bonds. E. Authorization for Refunding Trust Agreement. To carry out the Refunding Plan provided for by this ordinance, the Mayor or Finance Director 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 Finance Director 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 Finance Director 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 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, 2013, all of the Refunded Bonds at par plus accrued interest. Such call for redemption shall be irrevocable after the delivery of the Bonds to W: Word Process ing \Ord in ances\2003 Bond Refunding 9 -22 -2011 PM:mrh Page 11 of 18 71 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. 2027 in order to effect the redemption prior to their maturity of the Refunded Bonds. Section 13. City Findings with Respect to Refunding. Prior to the issuance of the Bonds, the Finance Director must find and determine, on behalf of the City, that the issuance, sale and delivery of the Bonds will effect a net present value savings to the City and its taxpayers of at least 3% (based on the amount of the refunded bonds), which the City Council determines is a substantial savings and .is in the best interest of the City and in the public interest. In making such finding and determination, the Finance Director shall give consideration to the fixed maturities of the Bonds and the Refunded Bonds, the costs related to the issuance, sale and delivery of the Bonds and the known earned income from the investment of the proceeds of the issuance and sale of the Bonds used in the Refunding Plan pending payment and redemption of the Refunded Bonds. Prior to the issuance of the Bonds, the Finance Director must further find and determine 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 district under Ordinance No. 2027 with respect to the Refunded Bonds, and the pledges, charges, trusts, covenants and agreements of the District therein made or provided for as to the Refunded Bonds, and that the Refunded Bonds shall no longer be deemed to be outstanding under Ordinance No. 2027 immediately upon the deposit of such money with the Refunding Trustee. Section 14. Tax Covenants; Designation of Bonds as "Qualified Tax Exempt Obligations." A. Preservation of Tax Exemption for Interest on Bonds. The City covenants that it will take all actions necessary to prevent interest on the Bonds from being included in gross income for federal income tax purposes, and it will neither take any action nor make or permit any use of proceeds of the Bonds or other funds of the City treated as proceeds of the Bonds at any time during the term of the Bonds which will cause interest on the Bonds to be included in gross income for federal income tax purposes. The City also covenants that it will, to the extent the arbitrage rebate requirements of Section 148 of the Code are applicable to the Bonds, take all actions necessary to comply (or to be treated as having complied) with those requirements 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 tax purposes. W: Word Processing \Ordinances\2003 Bond Refunding 9 -22 -2011 PM:mrh Page 12 of 18 72 B. Designation of Bonds as "Qualified Tax Exempt Obligations." 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 tax 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 $10,000,000; 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 $10,000,000. The City designates the Bonds as "qualified tax exempt obligations" for the purposes of Section 265(b)(3) of the Code. Section 15. Refunding or Defeasance of the Bonds. The City may issue refunding bonds pursuant to the laws of the State 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 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 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 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 16. Bond Fund and Deposit of Bond Proceeds. The Bond Fund is hereby created and established in the office of the Finance Director as a special fund designated the Limited Tax General Obligation Refunding Bond Fund, 2011, for the purpose of paying principal of and interest on the Bonds. All taxes and other amounts W: Word Processing \Ordinances\2003 Bond Refunding 9 -22 -2011 PM:mrh Page 13 of 18 73 allocated to the payment of the principal of and interest on the Bonds shall be deposited in the Bond Fund. Section 17. Undertaking to Provide Continuing Disclosure. To meet the requirements of paragraph (b)(5) of Rule 15c2 -12, as applicable to a participating underwriter for the Bonds, the City makes the following written Undertaking for the benefit of holders of the Bonds: A. Undertaking to Provide Annual Financial Information and Notice of Listed Events. The City undertakes to provide or cause to be provided, either directly or through a designated agent, to the MSRB, in an electronic format as prescribed by the MSRB, accompanied by identifying information as prescribed by the MSRB: (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 (not in excess of 10 business days after the occurrence of the event) of the occurrence of any of the following events with respect to the Bonds: (1) principal and interest payment delinquencies; (2) non payment related defaults, if material; (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, the issuance by the Internal Revenue Service of proposed or final determinations of taxability, Notice of Proposed Issue (IRS Form 5701 TEB) or other material notices or determinations with respect to the tax status of the Bonds; (7) modifications to rights of holders of the Bonds, if material; (8) bond calls (other than scheduled mandatory redemptions of Term Bonds), if material, and tender offers; (9) defeasances; (10) release, substitution, or sale of property securing repayment of the Bonds, if material; (11) rating changes; (12) bankruptcy, insolvency, receivership or similar event of the City, as such "Bankruptcy Events" are defined in Rule 15c2 -12; (13) the consummation of a. merger, consolidation, or acquisition involving the City or the sale of all or substantially all of the assets of the City other than in the ordinary course of business, the entry into a definitive agreement to undertake such an action or the termination of a definitive agreement relating to any such actions, other than pursuant to its terms, if material; and (14) appointment of a successor or additional trustee or the change of name of a trustee, if material. (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. W: Word Processing \Ordinances\2003 Bond Refunding 9 -22 -2011 PM:mrh Page 14 of 18 74 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 applicable to State local governmental units such as the City, 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) outstanding general obligation bonds; (3) assessed valuation for the fiscal year; (4) regular property tax levy rate and regular property tax levy rate limit for the fiscal year; and (5) general fund revenues from other major tax sources; and (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 year may be changed as required or permitted by State law, commencing with the City's fiscal year ending December 31, 2012; 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 Rule 1.5c2 -12. 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 financial information to be provided, the annual financial information containing the amended financial information will include a narrative explanation of the effect of that change .on the type I of information to be provided. D. Beneficiaries. The Undertaking evidenced by this section shall inure to the benefit of the City and any Beneficial Owner 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 Rule 15c2 -12 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. W: Word Processing \Ordinances\2003 Bond Refunding 9 -22 -2011 PM:mrh Page 15 of 18 75 F. Remedy for Failure to Comply with Undertaking. As soon as practicable after the City learns of any failure to comply with the Undertaking, the City will proceed with due diligence to cause such noncompliance to be corrected. No failure by the City or other obligated person to comply with the Undertaking shall constitute a default in respect of the Bonds. The sole remedy of any Beneficial Owner of a Bond shall be to take such actions as that Beneficial Owner 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 Finance Director 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 Rule 15c2 -12, including, without limitation, the following actions: (i) Preparing and filing the annual financial information undertaken to be provided; (ii) Determining whether any event specified in subsection (A) has occurred, assessing its materiality, where necessary, with respect to the Bonds, and preparing and disseminating any required notice of its occurrence; (iii) Determining whether any person other than the City is an "obligated person" within the meaning of Rule 15c2 -12 with respect to the Bonds, and obtaining from such person an undertaking to provide any annual financial information and notice of listed events for that person in accordance with Rule 15c2 -12; (iv) Selecting, engaging and compensating designated agents and consultants, including but not limited to financial advisors and legal counsel, to assist and advise the City in carrying out the Undertaking; and (v) Effecting any necessary amendment of the Undertaking. Section 18. Execution of Bond Purchase Contract; Delegation of Final Bond Terms. The Underwriter is expected to present a purchase contract (the "Bond Purchase Contract to the City offering to purchase the Bonds under the terms and conditions provided in the Bond Purchase Contract. Pursuant to the terms of RCW 39.46.040, the Finance Director is hereby authorized to serve as the designated representative of the Mayor and the City Council and to accept, on behalf of the City, the Bond Purchase Contract consistent with the terms of this ordinance. 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. W: Word Processing \Ordinances\2003 Bond Refunding 9 -22 -2011 PM:mrh Page 16 of 18 76 Section 19. Official Statement. The City has been provided with copies of a preliminary official statement prepared in connection with the sale of the Bonds. For the sole purpose of the Underwriter's compliance with paragraph (b)(1) of Rule 15c2 -12, the Finance Director is authorized on behalf of the City, to "deem final" that Preliminary Official Statement as of its date, except for the omission of information permitted to be omitted by Rule 15c2 -12 and ratifies the distribution by the Underwriter of that preliminary official statement to potential purchasers of the Bonds. The City authorizes and approves the preparation, execution by proper City officials and delivery to the Underwriter of a final official statement for the Bonds, in the form of the preliminary official statement, with such modifications and amendments thereto as shall be deemed necessary or desirable by the City. The City authorizes and approves the distribution by the Underwriter of that final official statement to potential purchasers and purchasers of the Bonds. Section 20. Supplemental Ordinances. The City Council from time to time and at any time may pass an ordinance or ordinances supplemental to this ordinance which supplemental ordinance or ordinances thereafter shall become a part of this ordinance, for any one or more of the following purposes: A. To add to the covenants and agreements of the City in this ordinance such other covenants and agreements thereafter to be observed, which shall not adversely affect the interests of the holders and owners of the Bonds, or to surrender any right or power herein reserved to or conferred upon the City. B. To make such provisions for the purpose of curing any ambiguities or of curing, correcting or supplementing any defective provision contained in this ordinance in regard to matters or questions arising under such ordinances as the City Council may deem necessary or desirable and not inconsistent with such ordinances and which shall not materially adversely affect the interest of the holders and owners of the Bonds. Section 21. General Authorization and Ratification. The Mayor, City Administrator, Finance Director, and other appropriate officers of the City are severally authorized and directed to take any actions and to execute documents as in their judgment may be necessary or desirable to carry out the terms of, and complete the transactions contemplated by, this ordinance and the Bond Purchase Contract (including everything necessary for the prompt delivery of the Bonds to the Underwriter and for the proper application, use and investment of the proceeds of the sale thereof), and all actions heretofore taken in furtherance thereof and not inconsistent with the terms of this ordinance are ratified and confirmed in all respects. Section 22. Severability. The provisions of this ordinance are declared to be separate and severable. If a court of competent jurisdiction, all appeals having been exhausted or all appeal periods having run, finds any provision of this ordinance to be invalid or unenforceable as to any person or circumstance, such offending provision shall, if feasible, be deemed to be modified to be within the limits of enforceability or validity. However, if the offending provision cannot be so modified, it shall be null and W: Word Processing \Ordinances\2003 Bond Refunding 9 -22 -2011 PM:mrh Page 17 of 18 77 void with respect to the particular person or circumstance, and all other provisions of this ordinance in all other respects, and the offending provision with respect to all other persons and all other circumstances, shall remain valid and enforceable. Section 23. Effective Date of Ordinance. This ordinance or a summary thereof shall be published in the official newspaper of the City, and shall take effect and be in full force five days after passage and publication as provided by law. PASSED BY THE CITY COUNCIL OF THE CITY OF TUKWILA, WASHINGTON, at a Regular Meeting thereof this day of 2011. ATTEST /AUTHENTICATED: Christy O'Flaherty, CMC, City Clerk APPROVED AS TO FORM BY Shelley M. Kerslake, City Attorney Jim Haggerton, Mayor Filed with the City Clerk: Passed by the City Council: Published: Effective Date: Ordinance Number: W: Word Processing \Ordinances\2003 Bond Refunding 9 -22 -2011 PM:mrh Page 18 of 18 i SUMMARY OF REFUNDING RESULTS City of Tukwila, Washington Proposed Refunding of 2003A LTGO Bonds Dated Date Delivery Date Arbitrage yield Escrow yield Bond Par Amount True Interest Cost Net Interest Cost Average Coupon Average Life Par amount of refunded bonds Average coupon of refunded bonds Average life of refunded bonds PV of prior debt to 1 1/01/201 1 2.311447% Net PV Savings Percentage savings of refunded bonds Percentage savings of refunding bonds Sep 21, 2011 9:39 am Prepared by Seattle- Northwest Securities Corp. 11/01/2011 11/01/2011 2.311447% 0.147864°% 7.215.000.00 2.464629°% 2.620866°% 3.861175°% 7.869 7,270,000.00 4.465144°% 7.929 8,515,876.18 354,651.95 4.878294% 4.915481 (Finance 6.021 Tukwila :TUKWILA- R03ALTGO,R03ALTGO) Page I W e SAVINGS SavinL Summate i 9.976,728.75 159,31 1.25 PV of savings from cash flow Plus: Refunding funds on hand Net PV Savings Sep 21, 2011 9:39 am Prepared by Seattle Northwest Securities Corp. City of Tukwila, Washington Prior Prior Date Debt Service Receipts 1 1/01/201 1 Bonds 159,31 1.25 12/01/2011 159,31 1.25 06/01/2012 159,31 1.25 Present Value 12/01/2012 159,31 1.25 06/01/2013 159,31 1.25 Net Cash Flow 12/01/2013 159,31 1.25 Savings 06/01/2014 159,31 1.25 12/01/2014 759,311.25 159,31 1.25 06/01/2015 147,461.25 159,31 1.25 12/01/2015 772.461.25 159,311.25 06/01/2010 134.805.00 12/01/2016 784,805.00 134,625.00 06/01/2017 121.317.50 24,079.22 12/01/2017 796,317.50 24,686.25 06/01/2018 106,973.75 159,311.25 12/01/2018 811,973.75 34,372.50 06/01/2019 91,640.00 134,475.00 12/01/2019 826,640.00 23,404.64 06/01/2020 75,286.25 9,836.25 12/01/2020 840,286.25 147,461.25 06/01/2021 58,073.75 12/01/2021 858,073.75 760,250.00 06/01/2022 39,873.75 11,117.44 12/01/2022 879,873.75 19,080.00 06/01/2023 20,343.75 784,805.00 12/01/2023 895,343.75 33,160.00 9.976,728.75 159,31 1.25 PV of savings from cash flow Plus: Refunding funds on hand Net PV Savings Sep 21, 2011 9:39 am Prepared by Seattle Northwest Securities Corp. City of Tukwila, Washington Proposed Refunding of 2003A LTGO Bonds Present Value Prior Refunding Annual to 11/01/2011 Net Cash Flow Debt Service Savings Savings ab 2.3114466% -159,311.25 -159,311.25 159,31 1.25 159,31 1.25 159,31 1.25 159,006.44 159,311.25 157,062.50 2,248.75 2,218.80 159,311.25 134,625.00 24,686.25 26,935.00 24,079.22 159,311.25 134,625.00 24,686.25 23,804.11 159,311.25 149,625.00 9,686.25 34,372.50 9,233.41 159,311.25 134,475.00 24,836.25 23,404.64 759,311.25 749,475.00 9,836.25 34,672.50 9,163.37 147,461.25 125,250.00 22,211.25 20,455.40 772,461.25 760,250.00 12,211.25 34,422.50 11,117.44 134,805.00 115,725.00 19,080.00 17,172.46 784,805.00 770,725.00 14,080.00 33,160.00 12,527.55 121,317.50 105,900.00 15,417.50 13,560.86 796,31750 775,900.00 20,417.50 35,835.00 17,753.55 106,973.75 92,500.00 14,473.75 12.441.52 811,973.75 792,500.00 19,473 75 33,947.50 16.548.22 91,640.00 78,500.00 13,140.00 11,038.42 826,640.00 803,500.00 23,140.00 36,280.00 19,216.94 75,286.25 64,000.00 11,286.25 9,265.74 840,286.25 814,000.00 26,286.25 37,572.50 21,333.82 58,073.75 49,000.00 9,073.75 7,280.08 858,073.75 834,000.00 24,073.75 33,147.50 19,094.26 39,873.75 33,300.00 6,573.75 5,154.44 879,873.75 853,300.00 26.573.75 33,147.50 20,598.28 20,343.75 16,900.00 3,443.75 2,638.88 895,343.75 861,900.00 33,443.75 36,887.50 25,334.49 9,817,417.50 9,407,037.50 410,380.00 410,380.00 354,131.10 354,131.10 520.85 354,651.95 (Finance 6.021 TLtkwi la:TUKWILA- R03AL"I'GO,R03ALTGO) Page 2 SOURCES AND USES OF FUNDS City of Tukwila, Washington Proposed Refunding of 2003A LTGO Bonds Dated Date 11/01/2011 Delivery Date 11/01/2011 Sources: Bond Proceeds: Par Amount Premium Other Sources of Funds: Bond Fund Contribution Uses: Refunding Escrow Deposits: Cash Deposit SLGS Purchases Delivery Date Expenses: Cost of Issuance Underwriter's Discount Other Uses of Funds: Additional Proceeds Sep 21, 2011 9:39 am Prepared by Seattle Northwest Securities Coil). 7,215,000.00 754,644.35 7,969,644.35 159,31 1.25 8,128,955.60 0.75 8,042,929.00 8,042,929.75 35,000.00 50,505.00 85,505.00 520.85 8,128,955.60 (Finance 6.021 Tukwila :TUKWILA- R03ALTGO,R03ALTGO) Page 3 i i Sep 21, 2011 9:39 am Prepared by Seattle- Northwest Securities Corp. (Finance 6.021 Tukwila :TUKWILA- R03ALTGO,R03ALTGO) Page 20 UNREFUNDED BOND DEIST SERVICE City of Tukwila, Washington Proposed Refiinding of 2003A LTGO Bonds Period Annual Ending Principal Coupon Interest Debt Service Debt Service 12/01/2011 530,000 4.250% 34,556.25 564,556.25 564,556.25 06/01/2012 23,293.75 23,293.75 12/01/2012 555,000 4.250'% 23,293.75 578,293.75 601,587.50 06/01/2013 11,500.00 11,500.00 12/01/2013 575,000 4.000' 11,500.00 586,500.00 598,000.00 1,660,000 104,143.75 1,764,143.75 1,764,143.75 i Sep 21, 2011 9:39 am Prepared by Seattle- Northwest Securities Corp. (Finance 6.021 Tukwila :TUKWILA- R03ALTGO,R03ALTGO) Page 20 SUMMARY OF REFUNDING RESULTS City of Tukwila, Washington Proposed Refunding of 2003A LTGO Bonds Refunds Street portion only Dated Date Delivery Date Arbitrage yield Escrow yield Bond Par Amount True Interest Cost Net Interest Cost Average Coupon Average Life Par amount of refunded bonds Average coupon of refunded bonds Average life of refunded bonds PV ofprior debt to 11/01/2011 cr72.310972% Net PV Savings Percentage savings of refunded bonds Percentage savings of refunding bonds Sep 21, 201 1 9:52 am Prepared by Seattle- Northwest Securities Corp. 11/01/2011 11/01/2011 2.310972% 0.147863% 4.605,000.00 2.464155% 2.620393% 3.861317% 7.865 4,633,241.13 4.465144% 7.929 5,427,422.14 218,442.17 4.714673% 4.743587% (Finance 6.021 Tukwila :TUKWILA- R03ALT_2,R03ALTGO) Page I i SAVINGS City of Tukwila, Washington Proposed Refunding of 2003A LTGO Bonds Refunds Street portion only 6,358.265.51 101,530.60 Prior Refunding Net Cash Flow Debt Service 101,530.60 101,530.60 101.530.60 101,530.60 101,530.60 101,530.60 101,530.60 483,916.39 93,978.48 492,297.01 85,912.53 500,163.80 77,316.81 507,500.82 68,175.40 517,478.70 58.403.06 526,825.65 47,980.65 535,522.53 37,010.96 546,858.68 25,41 1.93 560.752.03 12,965.27 570,61 1.21 100,245.83 85,925.00 85,925.00 95,925.00 85,825.00 480,825.00 79,900.00 484,900.00 73,825.00 488,825.00 67,600.00 497,600.00 59,000.00 504,000.00 50,100.00 515,100.00 40,800.00 520,800.00 31,200.00 531,200.00 21,200.00 541,200.00 10,800.00 550,800.00 6,256,734.91 6,003,520.83 Savings Summary PV of savings from cash flow Plus: Refunding funds on hand Net PV Savings Sep 21, 2011 9:52 am Prepared by Seattle- Northwest Securities Corp. Savings 101,530.60 101,530.60 1,284.77 15,605.60 15,605.60 5,605.60 15,705.60 3,091.39 14,078.48 7,397.01 12,087.53 11,338.80 9,716.81 9,900.82 9,175.40 1 3,478.70 5,303.06 11,725.65 7,180.65 14,722.53 5,810.96 15,658.68 4,211.93 19,552.03 2,165.27 19,81 1.21 253,214.08 218,301.17 141.00 218,442.17 Present Value Annual to 11/01/2011 Savings L 2.3109724% 16,890.37 21,211.20 18,796.99 21,475.49 23,426.33 19,617.63 22,654.10 20.028.71 21.903.18 21,469.64 23,76396 21 ,976.48 253,214.08 101,530.60 101,336.38 1,267.66 15,221.94 15,048.06 5,343.59 14,800.48 2,879.95 12,965.76 6,734.56 10,879.30 10,088.84 8,546.89 8,609.27 7,887.34 11,454.19 6,975.33 9,738.10 5,895.38 11,949.26 4,662.48 12,420.38 3,302.72 15,156.28 1,659.29 15,008.35 218.301.17 (Finance 6.021 1 R03ALT 2,R03ALTGO) Page 2 Prior Prior Date Debt Service Receipts 11/01/201 1 101,530.60 12/01/201 1 101,530.60 06/01/2012 101,530.60 12/01/2012 101,530.60 06/01/2013 101,530.60 12/01/2013 101,530.60 06/01/2014 101,530.60 12/01/2014 483,916.39 06/01/2015 93,978.48 12/01/2015 492,297.01 06/01/2016 85,912.53 12/01/2016 500,163.80 06/01/2017 77,316.81 12/01/2017 507,500.82 06/01/2018 68.175.40 12/01/2018 517.478.70 06/01/2019 58,403.06 12/01/2019 526,825.65 06/01/2020 47,980.65 12/01/2020 535,522.53 06/01/2021 37,010.96 12/01/2021 546,858.68 06/01/2022 25,411.93 12/01 /2022 560,752.03 06/01/2023 12,965.27 12/01/2023 570,611.21 6,358.265.51 101,530.60 Prior Refunding Net Cash Flow Debt Service 101,530.60 101,530.60 101.530.60 101,530.60 101,530.60 101,530.60 101,530.60 483,916.39 93,978.48 492,297.01 85,912.53 500,163.80 77,316.81 507,500.82 68,175.40 517,478.70 58.403.06 526,825.65 47,980.65 535,522.53 37,010.96 546,858.68 25,41 1.93 560.752.03 12,965.27 570,61 1.21 100,245.83 85,925.00 85,925.00 95,925.00 85,825.00 480,825.00 79,900.00 484,900.00 73,825.00 488,825.00 67,600.00 497,600.00 59,000.00 504,000.00 50,100.00 515,100.00 40,800.00 520,800.00 31,200.00 531,200.00 21,200.00 541,200.00 10,800.00 550,800.00 6,256,734.91 6,003,520.83 Savings Summary PV of savings from cash flow Plus: Refunding funds on hand Net PV Savings Sep 21, 2011 9:52 am Prepared by Seattle- Northwest Securities Corp. Savings 101,530.60 101,530.60 1,284.77 15,605.60 15,605.60 5,605.60 15,705.60 3,091.39 14,078.48 7,397.01 12,087.53 11,338.80 9,716.81 9,900.82 9,175.40 1 3,478.70 5,303.06 11,725.65 7,180.65 14,722.53 5,810.96 15,658.68 4,211.93 19,552.03 2,165.27 19,81 1.21 253,214.08 218,301.17 141.00 218,442.17 Present Value Annual to 11/01/2011 Savings L 2.3109724% 16,890.37 21,211.20 18,796.99 21,475.49 23,426.33 19,617.63 22,654.10 20.028.71 21.903.18 21,469.64 23,76396 21 ,976.48 253,214.08 101,530.60 101,336.38 1,267.66 15,221.94 15,048.06 5,343.59 14,800.48 2,879.95 12,965.76 6,734.56 10,879.30 10,088.84 8,546.89 8,609.27 7,887.34 11,454.19 6,975.33 9,738.10 5,895.38 11,949.26 4,662.48 12,420.38 3,302.72 15,156.28 1,659.29 15,008.35 218.301.17 (Finance 6.021 1 R03ALT 2,R03ALTGO) Page 2 SOURCES AND USES OF FUNDS City of Tukwila, Washington Proposed Refunding of 2003A LTGO Bonds Refunds Street portion only Dated Date 11/01 /2011 Delivery Date 11/01/2011 Sources: Bond Proceeds: Par Amount Premium Other Sources of Funds: Bond Fund Contribution Uses: Refunding Escrow Deposits: Cash Deposit SLGS Purchases Delivery Date Expenses: Cost of Issuance Underwriter's Discount Other Uses of Funds: Additional Proceeds Sep 21. 2011 9:52 am Prepared by Seattle- Northwest Securities Corp. 4,605,000.00 481,682.15 5,086,682.15 101,530.60 5,188,212.75 0.75 5,125,836.00 5,125,836.75 30,000.00 32,235.00 62,235.00 141.00 5,188,212.75 (Finance 6.021 Tukwila :TUKWILA- R03ALT_2,R03ALTGO) Page 3 MR L 2e' M Sep 21, 2011 9:52 am Prepared by Seattle Northwest Securities Corp. (Finance 6.021 Tukwila :TUKWILA- R03ALT_2,R03ALTGO) Page 20 UNREFUNDED BOND DEBT SERVICE City of Tukwila, Washington Proposed Refunding of 2003A LTGO Bonds Refunds Street portion only Period Annual Ending Principal Coupon Interest Debt Service Debt Service 12/01/2011 530,000.00 4.250% 92,336.90 622,336.90 622,336.90 06/01/2012 81,074.40 81.074.40 12/01/2012 555_,000.00 4.250% 81,074.40 636,074.40 717,148.80 06/01/2013 69,280.65 69,280.65 12/01/2013 575,000.00 4.000% 69,280.65 644,280.65 713,561.30 06/01/2014 57,780.65 57,780.65 12/01/2014 217,614.21 3.950% 57,780.65 275,394.86 333,175.51 06/01/2015 53,482.77 53,48277 12/01/2015 226,681.47 4.050% 53,482.77 280,164.24 333,647.01 06/01/2016 48,892.47 48,892.47 12/01/2016 235,748.73 4.150`Yo 48,892.47 284,641.20 333,533.67 06/01/2017 44,000.69 44,000.69 12/01/2017 244,815.99 4.250'% 44,000.69 288,816.68 332,817.37 06/01/2018 38,798.35 38,798.35 12/01/2018 255,696.70 4.350% 38,798.35 294,495.05 333,293.40 06/01/2019 33,236.94 33,236.94 12/01/2019 266,577.41 4.450% 33,236.94 299,814.35 333,051.29 06/01/2020 27,305.60 27,305.60 12/01/2020 277,458.12 4.500% 27,305.60 304,763.72 332,069.32 06/01/2021 21,062.79 21,062.79 12/01/2021 290,152.28 4.550% 21,062.79 311,215.07 332,277.86 06/01/2022 14,461.82 14,461.82 12/01/2022 304,659.90 4.650`%n 14,461.82 319,121.72 333,583.54 06/01 /2023 7,378.48 7,378.48 12/01/2023 317,354.06 4.650% 7,378.48 324,732.54 332,111.02 4,296,758.87 1,085,848.12 5,382,606.99 5,382,606.99 M Sep 21, 2011 9:52 am Prepared by Seattle Northwest Securities Corp. (Finance 6.021 Tukwila :TUKWILA- R03ALT_2,R03ALTGO) Page 20 COUNCIL AGENDA SYNOPSIS Initials ITEM NO. Meeting Date I Prepared by I Mayor's tleview I Colrndll review 09/26/11 PM F 10/03/11 PM `t ITEM INFORMATION CAS NUMBER: 11 -097 I STAFF SPONSOR: PEGGY MCCARTHY I ORIGINAL AGENDA DATE: 09/26/11 AGENDA ITEM TITLE Water Revenue Bonds 1995 Early Redemption CATEGORY Discussion Motion Resolution Ordinance Bid Award Public Hearing Other Mtg Date 09126111 Mtg Date 10103111 Mtg Date Mtg Date Mtg Date Mtg Date Mtg Date SPONSOR Council Mayor HR DCD Finance Fire IT P&R Police PW SPONSOR'S The City issued $4,500,000.00 of revenue bonds in 1995 to finance capital improvements SUMMARY for the Water Enterprise Fund (401) with the final payment due in 2015. The current outstanding balance of these bonds is $1,370,000.00 plus interest. The City has the option to pay off or redeem these bonds for a savings of over $150,000.00. The Water Fund has $4 million in cash and investments as of 7/31/11 to support this early pay -off. Council is being asked to approve the early redemption of Water Revenue Bonds 1995. REVIEWED BY COW Mtg. CA &P Cmte F &S Cmte Transportation Cmte Utilities Cmte Arts Comm. Parks Comm. Planning Comm. DATE: 09/13/11 COMMITTEE CHAIR: DE'SEAN QUINN RECOMMENDATIONS: SPONSOR /ADMIN. Public Works COMMITTEE Unanimous Approval; Forward to Committee of the Whole COST IMPACT FUND SOURCE EXPENDITURE REQUIRED AMOUNT BUDGETED APPROPRIATION REQUIRED $1,392,690.00 $0.00 $1,392,690.00 Fund Source: WATER FUND 401 Comments: Water Fund has over $4 Million in cash and investments as of 7131111. MTG. DATE 09/26/11 10/03/11 MTG. DATE 09/26/11 10/03/11 RECORD OF COUNCIL ACTION ATTACHMENTS Informational Memorandum dated 09/09/11 Revenue Bond 1995 Amortization Schedule Excerpts from the Revenue Bond 1995 Official Statement Minutes from the Utilities Committee meeting of 09/13/11 I I Ej L.*r.j City of Tukwila Jim Haggerton, Mayor INFORMATIONAL MEMORANDUM TO: Mayor Haggerton Utilities Committee FROM: Peggy McCarthy, Acting Finance Director DATE: September 9, 2011 SUBJECT: Early Redemption of Revenue Bonds 1995 ISSUE Approve the early redemption of Revenue Bonds 1995. BACKGROUND The City issued $4,500,000 of revenue bonds in 1995 to finance Water Fund -401 capital improvements. The outstanding balance of these bonds is $1,370,000 (face value) with the next mandatory bond redemption occurring February 1, 2012 and the last mandatory bond redemption occurring February 1, 2015. An optional redemption clause allows the City to redeem, or pay -off, these bonds at 100% of face value on February 1, 2007 and thereafter. Interest payments that would be made over this three year period (February 1, 2012 to February 1, 2015) should the bonds not be redeemed before the next interest payment date total $188,813 and represent a 4.6% per annum interest rate ($188,813 interest $1,370,000 balance 3 year period). If the bonds were redeemed on November 1, 2011, the total pay -off would approximate $1,392,690 comprised of the bond principal of $1,370,000 and the estimated accrued interest of $22,690. Under this scenario, the interest cost savings to the City would be $166,123 (total interest payments of $188,813 due February 1, 2012 to February 1, 2015 less accrued interest from August 1, 2011 through November 1, 2011 of $22,690). The Water Fund -401 had $4 million in cash and investments as of July 31, 2011. DISCUSSION The City will benefit financially by early redemption of these bonds. If the $1,370,000 were invested in a 3 -year Treasury note at today's interest rate of .35 $4,795 would be generated in annual investment earnings or $14,385 for the 3 -year period. The net benefit to the City of using these funds to pay -off the bonds would be over $150,000 represented by the bond interest cost savings of $166,123 less the investment earnings opportunity cost of $14,385. RECOMMENDATION The Council is being asked to approve the Early Redemption of Revenue Bonds -1995 and consider this item at the September 26, 2011 Committee of the Whole meeting and the subsequent October 3, 2011 Regular Meeting. The issue will also be presented as an information only item at the September 20, 2011 Finance and Safety Committee meeting. Attachments: Revenue Bond 1995 amortization schedule. Excerpts from the Revenue Bond 1995 Official Statement WAPW Eng \OTHER \Gail Labanara\InfoMemo 1995 Water Fund RevBndRedemption.docx M9 0 1995 Revenue Bonds Date Principal D Interest i Total Principal 0/S 211/1996 163,627 163,627 4,500,000 8/1/1996 122.770 1 22 770 s 267,720 i 4,355,000_ 2/1/1997 145,000r _122,720 8/1/1997 211 /1998 119,711 119,71 19 711 4,200,000_. 811/19 2/99 9 155,000 116 418 160,000 116, 418 _274,711 116 418 276,418 4,040,000 8/1 /1999 1 112,938 112 2/1/2000 170,000 1.._...... 112,938 282,938 3,870,000 8/1/2000 109,155 109,166" 109,155 3,695,000 2/1/2001 8/1 !2001 175 000 1 105, i _284_,,155 1 105,174 -j/ 1 /2002 10 185,000 5 174 1 290,174 3 51 Q 000 811 /2002 l 10 ©8 3 100,873 1 2/1/2003 195 00 0..1....._ 100,873 T.._.. 3,315,000 811 /2003 96,241 96241 2/1/2004 200,000 7 9;, 1 296,241 l 3,115,000 8/1/2004 i 1 91,3911 2/1/2 005 21o,o 00 91, 391 _91 301,391 2,905,000_ 01, Y� 8!112005 1 86,141 86 I 2/1/2006 6 0 64--- --Y 225,000 1 86,141 31 8,141 2,680,000 2 /9%2007 235,000 1 80,51G sQ- S- 315 ,516 8/1 /2007 1 _2,445,000_ 74_406 74,406 FO 74,406 324,406 2,195,000 2/11 ?008 8/1/2008 250,0 3 67,656 2/1/2Q09 _67 67,656rt 1,935,0 260 327,65_.. 1... $11/2009 2/1/2014 60 ,6 3 6 _1 60,6361 00 1,660,000 275,0 60636 335,636 1 8/1 /2010 1 53,211 2/1/2019 _53_211 290,000 53 211 3 343 211_ 1,370,000 8/1!2011 2/1/2012 1 45 45,381 310,000 1 45,381 355,381 1 1,060,000 35_113 2!1/2013 330,000 i 365,113 3 730,000 8/1 12013 _35,11 24,181 1 24,18f] 2/1/2014 355,000 24,181 3 1 375,000 8/ 1 1 2,422 1 _'12,422 1 Y 2 /1 /2015 375,000 12,422 367,422 4,500,000 3,192;245 .7.,692 1 0 DESCRIPTION OF THE BONDS General The Bonds will be issued as fully registered bonds in denominations of $5,000, or integral multiples thereof within a single maturity, will be in the aggregate principal amount of $4,500,000", will be dated June 1, 1995, and will mature on February 1 in the years and in the amounts set forth on the cover page of this Official Statement. The Bonds shall bear interest from their date at the respective rates set forth on the cover of this Official Statement. Interest shall be calculated on the basis of a 360 -day year consisting of twelve 30 -day months, and shall be payable commencing February 1, 1996, and semiannually thereafter on each August 1 and February 1 to-the dates of maturity of the Bonds. Method of Payment The principal of and interest on the Bonds shall be payable in lawful money of the United States of America to the Registered Owners thereof whose names and addresses appear on the Bond Register. Payment of each installment of interest shall be made to the Registered Owner whose name appears on the Bond Register at the close of business on the fifteenth day of the calendar month preceding each semiannual interest payment date, and shall be paid by check or draft of the Bond Registrar mailed to such Registered Owner on the due date, at the address appearing on the Bond Register, or at such other .address as may be furnished in writing by. such Registered Owner .to the Bond Registrar. Interest, installments may be paid by wire transfer to a Registered Owner of $1,00000 or more aggregate principal amount. of Bonds if a written request of such Registered Owner is submitted to the Bond Registrar at least 10 days prior to the interest payment date. The principal of each Bond shall be paid to the Registered Owner thereof, upon presentation and surrender of each Bond on or. after the stated date of maturity, at either of the principal corporate trust offices of the Bond Registrar. The City and the Bond Registrar may deem and treat the Registered Owner of each. Bond as the absolute. owner of such Bond for the purpose of receiving payments of principal and interest due on such Bond and for all other purposes,. and neither the City nor the Bond Registrar shall be affected by anv notice to the contrary. Redemption Provisions Optional Redemption. The Bonds maturing in the years 1997 through 2005, inclusive, are not subject to redemption prior to their stated dates of maturity. The City has reserved the right to redeem and call the Bonds maturing on or after February 1, 2006, prior to their stated maturity, on or after February 1, 2005, in whole or in part (maturities to be selected by the City and by lot within a maturity in such manner as the Bond Registrar shall determine) at any time, at the following prices (expressed as a percentage of the principal amount of the Bonds to be redeemed), plus accrued interest, if any, to the date of redemption: Preliminary, subject to change. 4 91 Redemption Dates Redemption Prices February 1, 2005, through January 31, 2006 102% February 1, 2006, through January 31, 2007 101 February 1, 2007 and thereafter 100 Mandatory Sinking. Fund Redemption. The Bonds maturing on February 1, 2015, are Term Bonds and are subject to mandatory sinking fund redemption prior to maturity, in part, by lot in such manner as the Bond Registrar. shall determine, at 100 percent of the principal amount thereof plus accrued interest to the date of redemption, from mandatory sinking. fund deposits into the Principal and Interest Account in the years and principal amounts set forth below: Mandatory Sinking Fund Redemption Dates Mandatory Sinking Fund Ptedemntion Amounts February 1, 2008 February 1; 2009 February 1, 2010 February 1, 2011 February 1, 2012 February 1, 2013 February 1, 2014 February 1, 2015 (Maturity) .$255,000 270,000 285,000 305,000 320,000 340,000 365,000 385,000 Partial Redemptions. In accordance with the preceding two paragraphs, portions of the principal amount of any Bond, in installments of $5,000 or any integral multiple of $5 may be redeemed. If less than all of the principal amount of any Bond is redeemed, upon surrender of such Bond at either of the principal corporate trust offices of the Bond Registrar there shall be issued to the Registered Owner, without charge therefor, for the then unredeemed balance of the .principal amount thereof, a new Bond or Bonds, at the option of the Registered tOwner, with like maturity and interest rate; in any authorized denomination. Notice of Redemption. Unless waived by the Registered Owner of any Bond to be redeemed, notice of any such redemption shall be sent by the Bond Registrar by first class mail postage prepaid, not less than 30 or more than 60 days prior to the date fixed for redemption to the Registered Owner of each Bond to be redeemed at the address shown on the Bond Register, or at such other address as may be furnished in writing by such Registered Owner to the Bond Registrar. Such notice requirement shall be deemed to be complied with when notice is mailed as herein provided, regardless of whether or not it is actually. received by the Registered Owner of anv Bond. Effect of Redemption. When so called for redemption, the Bonds will cease to accrue interest on the specified redemption date, provided funds for redemption are on deposit at the place of payment at that time, and shall not be deemed to be. Outstanding as of such redemption date. Open Market Purchase and Cancellation. The City has .reserved the right to purchase the.Bonds on the open market at any time and at any price. The Bonds so purchased or redeemed shall be canceled. To the extent the City purchases Term Bonds or redeemed under the optional redemption provisions described above, the City, at its discretion, may reduce the amount of any mandatory 5 92 City of Tukwila Utilities Committee UTILITIES COMMITTEE Meeting Minutes September 13, 2011 5: 00 p. m. Conference Room #1 PRESENT De'Sean Quinn, Chair; Dennis Robertson and Kathy Hougardy Staff. Bob Giberson, Peggy McCarthy, Gail Labanara and Kimberly Matej CALL TO ORDER: Committee Chair Quinn called the meeting to order at 5:00 p.m. I. PRESENTATIONS No Presentations II. BUSINESS AGENDA A. Pavoff: Earlv Redemntion of 1995 Revenue Bonds Staff is seeking Council approval for an early redemption of Revenue Bonds originally issued for $4,500,000 from 1995. If approved, this early redemption will result in the payoff of the revenue bonds three years earlier than scheduled. The payoff face value is currently $1,370,000 and the early payoff will save the City approximately $150,000. Payoff monies will come from the Fund 401 Water, which was the same fund financed by the original bonds for capital improvements. Staff will also present this item as information only to the Finance Safety Committee. UNANIMOUS APPROVAL. FORWARD TO SEPTEMBER 26 COW FOR DISCUSSION. III. MISCELLANEOUS Meeting adjourned at 5:16 p.m. Next meeting: Tuesday, September 27, 2011 5:00 p.m. Con£ Room No. 1. Committee Chair Approval Minutes by KAM. Reviewed by GL. 93 M Upcoming Meetings Events September October 2011 26th (Monday) 27th (Tuesday) 28th (Wednesday) 29th (Thursday) 30th (Friday) Community Utilities Cmte, COPCAB, Affairs Parks 5:00 PM 6:30 PM Crate, (CR #I) (CR 45) 5: 00 PM (CR #3) Budget Work City Council Session Committee of 6:00 -8:00 PM the Whole Mtg., (Billy Baroo's 7:00 PM Banquet Room (Council at Foster Gol( Chambers) Links: 13900 Interurban Are S) 3rd (Monday) 4th (Tuesday) 5th (Wednesday) Transportation Cmte, 5:00 PM (CR #1) Civil Service Commission, 5:00 PM (CR #3) City Council Regular Mt&, 7:00 PM (Council Chambers) Chamber of Commerce Gov't. Community Affairs Cmte, 12:00 NOON (Chamber Off ce) Finance Safety Cmte, 5:00 PM (CR #3) Arts Commission 5:30 PM (Community Center) 6th (Thursday) 7th (Friday) Equity Diversity Commission, 5:15 PM (CR #3) Sister City delegation arrives from Japan (here through Oct. 9) Tukwila Community Center will host an Iee Cream Social 5:00 PM 1st (Saturday) 8th (Saturday) Council Coffee Chat 10:00 AM to 12:00 NOON Stop by and informally talk with a Tukwila City Councilmember about anything on your mind regarding Tukwila. Friendr Cafe (12930 E. Marginal Hay) Sister City Banquet 6:00 -9:00 PM Tukwila Community Center For additional information call 206 768 -2822 Arts Commission: 1st Tues., 5:30 PM, Tukwila Community Center. Contact Stephanie Gardner at 206- 767 -2342. Chamber of Commerce's Tukwila Government and Community Affairs Committee: 1st Tues:, 12:00 Noon, Chamber Offices. Contact Lynn Wallace at 206 -575 -1633. City Council Committee of Whole (C.O.W.) Meeting: 2nd 4th Mon., 7:00 PM, Council Chambers at City Hall. City Council Regular Meeting: 1st 3rd Mon., 7:00 PM, Council Chambers at City Hall. Civil Service Commission: 1st Mon., 5:00 PM, Conf. Room #3. Contact Human Resources at 206- 433 -1831. Community Affairs Parks Committee: 2nd 4th Mon., 5:00 PM, Conf. Room #3 (A) Status report on Southcenter Plan revision process. (B) Duwamish Hill Preserve update. (C)Parks Recreation Events Calendar. COPCAB (Community Oriented Policing Citizens Adv. Board): 4th Wed., 6:30 PM, Conf. Rm #5. Phi Huynh (206- 433 7175). Equity Diversity Commission: 1st Thurs., 5:15 PM, Conf. Room #3. Contact Joyce Trantina at 206- 433 -1850. Finance Safety Committee: 1st 3rd Tues., 5:00 PM, Conf. Room #3. ➢Human Services Advisory Brd: 2nd Fri. of odd months, 10:00 AM, Human Services Office. Contact Erie Boykan at 206- 433 -7180. Library Advisory Board: 3rd Wed., 7:00 PM, Foster Library. Contact Stephmrie Gardner at 206 767 -2342. Lodging Tax Advisory Committee: Every other month (or as scheduled), 12:00 NOON. Contact Katherine Kertzrnan at 206 -575 -2489. Parks Commission: 3rd Wed., 5:30 PM, Senior Game Room at Community Center. Contact Stephanie Gardner at 206 767 -2342. Planning Commission /Board of Architectural Review: 4th Thurs. except 2nd Thursday in Nov. Dec., 6:30 PM, Council Chambers at City Hall. Contact Wynetta Bivens at 206 431 -3670. Sister City Committee: Quarterly, 5:30 PM, Tukwila Community Center. Contact Tracy Gallaway at 206 -767 -2305. ➢Transportation Committee: 1st 3rd Mon., 5:00 PM, Conf. Room ➢Tukwila Historical Society: 3rd Thurs., 7'00 PM, Tukwila Heritage Cultural Center, 14475 59 Avenue S. Contact Pat Brodin at 206 433 -1861. ➢Tukwila Int'I. Blvd. Action Cmte: 2nd Tues., 7:00 PM, Tukwila Community Center. Contact Chief Villa at 206 433 -1815. Utilities Committee: 2nd 4th Tues., 5:00 PM, Conf. Room 91 (A) 201012011 Small Drainage Program. (B) 6300 Building Standby Generator Project. 95 fentative Agenda Schedulew October 3 10 17 S pecial Presentations: Special Presentations: Unfinished Business: Swearing in of Best workplace Tukwila Urban Center Michael Baisch, Police recycling and waste Pedestrian/ Bicycle Officer, and Darryl reduction award to the Bridge Council Barnes, Transport City of Tukwila. Briefing. Service Officer. Special Issues: Public Hearings: Tukwila Urban Center Unclassified Use Pedestrian/ Bicycle Permit (UUP) for Blue Bridge Council Star Gas. Briefing. A moratorium regarding collective gardening of marijuana. Consent Agenda: Accept as complete the East Marginal Way South and South 86th PI Signal Pole Project with Signal Electric. Unfinished Business: Adopt findings of fact, conclusions, and recommendations in staff report and approve the UUP for Blue Star Gas. Adopt findings of Fact regarding collective gardening of marijuana. An agreement with Bonneville International for advertising Seattle Southside. An ordinance regarding livestock, small animals and fowl. Early redemption of 1995 Revenue Bonds. See agenaa pacxer cover sheet for this week's agenda (September 26, 2011 Connnittee of the Whole Meeting) 24 Special Issues: Repeal Ordinance 2332.