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HomeMy WebLinkAboutReg 2006-11-06 COMPLETE AGENDA PACKET Tukwila City Council Agenda q ty of 611.. REGULAR MEETING fit' Steven M. Mullet, Mayor Councilmembers: Joe Duffie Joan Hernandez Rhonda Berry, City Administrator Pam Carter Jim Haggerton Dennis Robertson, Council President Pamela Linder Verna Griffin Monday, November 6, 2006; 7:00 PM Ord 2136 Res #1618 1. CALL TO ORDER PLEDGE OF ALLEGIANCE ROLL CALL 2. SPECIAL Special awards presented by Chief Nick Olivas to: PRESENTATIONS Battalion Chief David Ewing and Firefighter Rich Rees. 3. CITIZEN At this time, you are invited to comment on items not included COMMENT 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. CONSENT a. Approval of minutes: 10/16/06 (Regular); 10/23/06 (Special). AGENDA b. Approval of vouchers. 5. UNFINISHED a. An ordinance relating to Allentown /Foster Point sewer revenue Pg. BUSINESS bonds. b. An ordinance establishing 2007 water rates and rates for water Pg. supplied for fire protection purposes. c. A resolution approving a Public Works fee schedule for surface P water and sewer. d. An ordinance regarding the Metropolitan King County sewer rate Pg. pass through for 2007 sewage disposal fees. e. A resolution amending Resolution No. 1475 regarding medical benefits for employee dependents. Pg. f. Continuation of review of Proposed 2007 Budget and CIP. Please bring your 2007 Budget and CIP documents.) P g 6. NEW BUSINESS 7. REPORTS a. Mayor c. Staff e. Intergovernmental b. City Council d. City Attorney 8. MISCELLANEOUS 9. EXECUTIVE SESSION Pending Litigation; pursuant to RCW 42.30.110(1)(i) (15 minutes) 10. ADJOURNMENT 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/TDD 206 -248 -2933. This notice is available at www.ci.tukwila.wa.us, and in alternate formats with advance notice for those with disabilities. Tukwila Council meetings are audio taped. 'fr iZt4 LA, w COUNCIL AGENDA SIWOPSIS Of y I n it ta l r TElYI N0. Q PVC' O 1bleetin� Date Prepared by 1 Mayor's review „Council review 1 u.1 d .1) !;p I 10/23/06 1 KAF 1 Wik 11/06/06 4._ ITEM INFORMATION CAS NUMBER: 06-122 I ORIGINAL AGENDA DATE: 10/23/06 AGENDA ITEM TI'IZE Allentown /Foster Point Sewer Revenue Bonds CATEGORY Discussion Motion El 'Resolution Ordinance Bid Award Public Hearing Other Mtg Date 10/23/06 Mfg Date Mtg Date Mtg Date 11/06/06 Mtg Date Mtg Date Mtg Date SPONSOR El Council Mayor Adm Svcs DCD Finance Fire Legal P&R Police PW SPONSOR'S A $3.3 million revenue bond issue was included in the adopted 2006 -2011 Capital SUMMARY Improvement Program as a funding source for the Allentown /Foster Point Sewer Project. As this project also includes water and surface water improvements, the debt will be spread proportionately amongst the (3) utilities (sewer 55 water 29 and surface water 16 REVIEWED BY COW Mt El CA &P Cmte F &S Cmte Transportation Cmte Utilities Cmte Arts Comm. Parks Comm. Planning Comm. DATE: 10/16 17/06 RECOMMENDATIONS: SPONSOR /ADMIN. Adopt ordinance authorizing the issuance of revenue bonds COMMTUTbE Unanimous approval; forward to COW Meeting on 10/23/06 COST IMPACT FUND SOURCE EXPENDITURE REQUIRED AMOUNT BUDGETED APPROPRIATION REQUIRED $3.3M Fund Source: N/A Comments: N/A MTG. DATE RECORD OF COUNCIL ACTION 10/23/06 Forward to 11/6/06 Regular Meeting MTG. DATE ATTACHMENTS 10/23/06 Memorandum to Finance Safety and Utilities Committees, Dated 10/12/06 Draft Bond Debt Service Schedule Draft Bond Ordinance Finance Safety Committee Meeting Minutes 10/16/06 Utilities Committee Meeting Minutes 10/17/06 11/06/06 Ordinance (with final figures provided at the meeting) 3 fo i o ff ;fit 79Q8_� City of Tukwila Washington Ordinance No. AN ORDINANCE OF THE CITY OF TUKWILA, WASHINGTON, RELATING TO THE WATERWORKS UTILITY OF THE CITY, INCLUDING THE SYSTEM OF SEWERAGE AS A PART THEREOF; SPECIFYING, ADOPTING AND ORDERING TO BE CARRIED OUT A SYSTEM OR PLAN OF ADDITIONS TO AND BETTERMENTS AND EXTENSION OF THE WATERWORKS UTILITY; PROVIDING FOR THE ISSUANCE OF [S3,500,000] PRINCIPAL AMOUNT OF WATER AND SEWER REVENUE BONDS, 2006, OF THE CITY FOR THE PURPOSE OF PROVIDING A PART OF THE COST OF THAT SYSTEM OR PLAN, AND TO PAY COSTS OF ISSUING THE BONDS; FIXING THE DATE, FORM, MATURITIES, INTEREST RATES, TERMS AND COVENANTS OF SUCH BONDS; PROVIDING FOR BOND INSURANCE; AND PROVIDING FOR THE SALE AND DELIVERY OF SUCH BONDS TO LEHMAN BROTHERS INC., SEATTLE, WASHINGTON; PROVIDING FOR SEVERABILITY; AND ESTABLISHING AN EFFECTIVE DATE. WHEREAS, the City of Tukwila, Washington (then the Town of Tukwila), by Ordinance No. 320, passed by the Town Council and approved by the Mayor on May 1, 1961, and subsequently amended, specified and adopted a system or plan for a system of sewerage for the Town and provided that the system of sewerage become a part of the waterworks utility of the Town, and authorized the issuance and sale of Water and Sewer Revenue Bonds, 1961, in the principal amount not to exceed $170,000 to pay a portion of the cost thereof, such waterworks utility, as hereinafter referred to, being deemed to include the systems of water supply and distribution and sanitary sewage disposal, as combined by Ordinance No. 320 pursuant to RCW 35.67.320, and any additions thereto and extensions, renewals and betterments thereof hereafter made or constructed; and WHEREAS, $170,000 par value Water and Sewer Revenue Bonds, 1961, of the City (the "1961 Bonds were issued pursuant to Ordinance No. 334 and were payable from the gross revenues of the waterworks utility, including as a part of such revenues a water and sanitary sewage disposal service surcharge payable under a contract between the City and Puget Western, Inc., a Washington corporation, all of which bonds have matured or have been redeemed and retired; and WHEREAS, pursuant to. Section 7 of Ordinance No. 334, as amended and restated by Section 16 of Ordinance No. 1575, as further amended and replaced by Section 19 of Ordinance No. 1676 that provided for the issuance by the City of Tukwila, Washington (the "City"), of its Water and Sewer Refunding Revenue Bonds, 1993 (the "1993 Bonds and as incorporated by reference in Section 17 of Ordinance No. 1735 that provided for the issuance by the City of its Water and Sewer Revenue Bonds, 1995 (the "1995 Bonds," and, together with the 1993 Bonds (the "Outstanding Parity Bonds the City reserved the right to issue water and sewer revenue bonds having a charge and lien upon the gross revenues of the waterworks utility on a parity with the Iien and charge upon such gross revenues of the Outstanding Parity Bonds for the payment of the principal thereof and interest thereon if the following conditions are met and complied with at the time of issuance of those bonds: "(a) All payments then required by this Ordinance or any other ordinance hereafter enacted pertaining to Outstanding Parity Bonds, the Bonds and to any such additional or refunding water and sewer revenue bonds hereafter issued shall have been made into the Bond Fund and maintained intact therein; and (b) The historical gross revenues of the Waterworks Utility, including any water and sanitary sewage disposal service surcharge payable under any Agreement C:\Documents and Settings\All Users\Desktop\Kelly\MSDATA Ordinances \Bond.doc cv innarA Page 1 of 15 between the City and any third party, for any twelve consecutive months out of the immediately preceding fifteen months' period adjusted to reflect (1) a year's net income from each customer of the Waterworks Utility connected to such utility at the end of that twelve -month period who has not been a customer for the entire twelve -month period, (2) the additional revenue, from whatever source and of whatever nature, anticipated to be received from the improvement in connection with which additional water and sewer revenue bonds are to be issued, (3) revenue to be derived from any customer under any executed contract for water and/or sewer service which revenue was not included in the historical gross revenues of the Waterworks Utility, and (4) the engineer's estimate of the gross revenues to be derived by the City from customers within improved property available to commit to any additions to and improvements an extensions of the Waterworks Utility to be paid out of the proceeds of the sale of the Future Parity Bonds or other additions to and improvements and betterments of the Waterworks Utility then under construction and not fully connected to the Waterworks Utility when such additions, improvements and betterments are completed and connected, shall be deemed sufficient, after the payment of normal operation and maintenance costs (adjusted to reflect actual or reasonably anticipated changes in those operation and maintenance costs subsequent to that twelve -month period) and state and federal taxes, to equal at least 1.25 times the average annual principal and interest requirements of all then outstanding water and sewer revenue bonds, including the Bonds and of the additional or refunding bonds proposed to be so issued, but except the principal requirements of any Term Bond Maturity Year or Years of any bonds payable out of the Bond Fund, such determination of the sufficiency of the revenues shall be made and certified to by an independent professional-registered engineer experienced in municipal utilities and licensed to practice in the State of Washington; except, that if such additional bonds proposed to be so issued are for the sole purpose of refunding water and sewer revenue bonds, such certification of coverage shall not be required if the amount required for payment of the principal and interest in each year for the refunding bonds is not increased over the amount required for the bonds to be refunded thereby and the maturities of said refunding bonds are not extended beyond the maturities of the bonds to be refunded thereby. "(c) The ordinance authorizing the issuance of such additional bonds shall provide that such additional bonds shall provide that an amount equal to the average annual debt service of the additional bonds proposed to be issued shall be accumulated as a reserve in the Bond Fund, those amounts to be accumulated by monthly deposits commencing not later than one month after the date of issuance of the additional bonds and to be accumulated within five years after the date of issuance of such bonds, and that reserve to be maintained in such amounts so long as any of those additional bonds are outstanding to the last maturity thereof. In the case of parity refunding bonds the ordinance authorizing the issuance of such refunding bonds shall provide that the money in the Reserve Account for the bonds to be refunded shall be transferred to the Reserve Account in the Bond Fund, or that the money in the Reserve Account for the bonds to be refunded shall be used to redeem such bonds, in which event an amount equal to the average annual debt service for the refunding bonds proposed to be issued shall be accumulated as a reserve in the same manner and within the same times as set forth herein for additional revenue bonds. The City may at any time substitute an Alternate Security in lieu of all or any part of the cash deposit in the amount of the required reserve in the Reserve Account; and "(d) The ordinance authorizing the issuance of such Future Parity Bonds shall provide for the creation of a sinking fund account in the Bond Fund for any Term Bonds to be issued and for regular payments to be made into such account for the payment of principal of such Term Bonds on or before their maturity, or, as an alternative, for the mandatory redemption of such Term Bonds prior to their maturity date from money on deposit in the Principal and Interest Account;" and C:\Documents and Settings\All Users\ Desktop\ Kelly \b1SDATA \Ordinances\Bond.doc SK:ksn 11/3/2006 Page 2 of 15 WHEREAS, the City Council has determined that certain capital improvements to the Waterworks Utility are necessary to enable the City to provide water and sewer services to the areas of the City described in the Comprehensive Surface Water Management Plan established by Ordinance No. 2064 of the City; and WHEREAS, the City Council has determined to issue the Bonds to provide the funds to pay part of the cost of the Plan of Additions and paying the cost of issuance and sale of the Bonds; and WHEREAS, Financial Security Assurance Inc. (the "Bond Insurer has made a commitment to issue an insurance policy (the "Municipal Bond Insurance Policy insuring the payment when due of the principal of and interest on the Bonds as provided therein, and the City Council of the City deems that the purchase of the Municipal Bond Insurance Policy is in the best interest of the City; and WHEREAS, Lehman Brothers Inc. of Seattle, Washington (the "Underwriter has offered to purchase the Bonds on the terms and conditions set forth in a proposed form of Bond Purchase Contract dated November 2006 (the "Bond Purchase Contract between the Underwriter and the City, which Bond Purchase Contract is on file with the City Clerk; and WHEREAS, the Finance Director has advised the City Council that the Underwriter's offer to purchase the Bonds is advantageous to the City, that the City should accept such offer, and that any delay in accepting the Offer risks having interest costs increased to the detriment of the City and its utility ratepayers; and WHEREAS, to authorize the acceptance of the offer to purchase the bonds under the terms of the Bond Purchase Contract, this ordinance must become effective as soon as permitted under RCW 35A.12.130; NOW, THEREFORE, THE CITY COUNCIL OF THE CITY OF TUKWILA, WASHINGTON, DO ORDAIN AS FOLLOWS: Section 1. Definitions. A. As used in this ordinance, the following words shall have the following meanings: "Alternate Security" shall mean a surety bond or insurance policy issued to a bond trustee or other independent party as agent of the owners by a company licensed to issue an insurance policy guaranteeing the payment of debt service of, and which may be deposited in the reserve Account to meet the required reserve for, the Outstanding Parity Bonds, the Bonds or any Future Parity Bonds if the claims paying ability of the issuer thereof shall be rated "AAA" or "Aaa" by Standard Poor's Rating Services, a Division of The McGraw -Hill Companies, Inc., or Moody's Investors Service, respectively. "Bond Fund" shall mean that special fund of the City known as the Water and Sewer Revenue Bond Fund, 1961, created by Ordinance No. 334 for thie payment of the principal of and interest on the 1961 Bonds and any bonds issued on a parity therewith, including the Outstanding Parity Bonds and the Bonds. "Bond Insurer" shall mean Financial Security Assurance Inc., a New York stock insurance company, or any successor thereto or assignee thereof. "Bond Registrar" shall mean the Fiscal Agency of the state of Washington, or any successor bond registrar selected by the City, whose duties include the registration and authentication of the Bonds, maintenance of the Bond Register, effecting transfer of ownership of the Bonds, and paying the principal of and premium, if any, and interest on the Bonds. "Bonds" shall mean the $[3,500,000] par value of Water and Sewer Revenue Bonds, 2006, of the City issued pursuant to and for the purposes provided in this ordinance. "1961 Bonds" shall mean the Water and Sewer Revenue Bonds, 1961, issued for the purposes provided in and pursuant to Ordinance No. 334, as amended, all of which 1961 Bonds have matured and have been redeemed. "1993 Bonds" shall mean the outstanding Water and Sewer Refunding Revenue Bonds, 1993, of the City issued pursuant to and for the purposes described in Ordinance No. 1676. C: \Documents and Settings\All Users Desktop\ Kelly \,VISDATA \Ordinances\Bond.doc SK:ksn 11/3/2006 Page 3 of 15 "1995 Bonds" shall mean the outstanding Water and Sewer Revenue Bonds, 1995, of the City issued pursuant to and for the purposes described in Ordinance No. 1735. "City" shall mean the City of Tukwila, Washington, formerly the Town of Tukwila. "Code" shall mean the Internal Revenue Code of 1986, as amended, and applicable rules and regulations promulgated thereunder. "Future Parity Bonds" shall mean any and all water and sewer revenue bonds of the City issued after the date of the issuance of the Bonds and in accordance with Section 19 of Ordinance No. 1676, Section 17 of Ordinance No. 1735 and Section 16 hereof, the payment of the principal of and interest on which constitutes a charge and lien upon the revenue of the Waterworks Utility equal in rank with the charge and lien upon such revenue required to be paid into the Bond Fund to pay and secure the payment of the principal of and interest on the Outstanding Parity Bonds and the Bonds. "Government Obligations" shall mean those government obligations defined by RCW 39.53.010(9) as it now reads or hereafter may be amended or replaced. "Municipal Bond Insurance Policy" shall mean the policy issued by the Bond Insurer guaranteeing the scheduled payment of principal of and interest on the Bonds when due. "Outstanding Parity Bonds" shall mean the outstanding 1993 Bonds and the 1995 Bonds. "Permitted Investments" shall mean legal investments for the City which are (1) direct obligations of the United States of America (in the form of obligations issued or held in book -entry form on the books of the Department of the Treasury) or obligations the principal of and interest on which are unconditionally guaranteed by the United States of America; (2) unless otherwise specified, bonds, debentures, notes or other evidence of indebtedness issued or guaranteed by any of the following federal agencies (full faith and credit agencies): U. S. Export-Import Bank (direct obligations or fully guaranteed certificates of beneficial ownership), Farmers Home Administration (certificates of beneficial ownership), Federal Financing Bank, Federal Housing Administration (debentures), General Services Administration (participation certificates), Government National Mortgage Association (GNMA- guaranteed- mortgage- backed bonds and GNMA guaranteed- pass through obligations), U. S. Maritime Administration (guaranteed Title XI financing), New Communities Debentures (U. S. Government guaranteed debentures), and U. S. Public Housing Notes and Bonds (U. S. government guaranteed public housing notes and bonds); (3) unless otherwise specified, bonds, debentures, notes or other evidence of indebtedness issued or guaranteed by any of the following U. S. government agencies (non full -faith and credit agencies): Federal Home Loan Bank System (senior debt obligations), Federal Home Loan Mortgage Association (participation certificates), Federal National Mortgage Association (mortgage backed securities and senior debt obligations), and Student Loan Marketing Association (senior debt obligations); and (4) certificates of deposit, savings accounts or deposit accounts which are fully secured by the FDIC. "Plan of Additions" shall mean the system or plan of additions to and betterments and extensions of the Waterworks Utility as further described in Section 3 hereof. "Principal and Interest Account" shall mean the account of that name created in the Bond Fund for the payment of the principal of and interest on the Outstanding Parity Bonds, the Bonds and Future Parity Bonds. "Reserve Account" shall mean the account of that name created in the Bond Fund for the purpose of securing the payment of the principal of and interest on the Outstanding Parity Bonds, the Bonds and Future Parity Bonds. "State" shall mean the state of Washington. "Term Bond Maturity Year or Years" shall mean any last maturity year in which the outstanding amount of bonds of any one issue or series which are scheduled to mature (regardless of any reservation of parity redemption rights) is more than two times the average annual principal maturity of the bonds of that issue or series and of all bonds issued on a parity therewith for three years immediately proceeding such term bond maturity year. "Term Bonds" shall mean any bonds maturing in a Term Bond Maturity Year. C:1Documents and Settings\A11 Users\Desktop\ Kelly \MSDATA \Ordinances \Bond.doc SK:ksn 11/3/2006 Page 4 of 15 "Waterworks Utility" shall mean the waterworks utility of the City, including the system of sewerage and, for bond purposes, the surface water utility. B. Upon the redemption or defeasance of all then outstanding 1993 Bonds and 1995 Bonds, the following definitions shall become effective: "Contract Resource Obligation" means an obligation of the City, designated as a Contract Resource Obligation and entered into pursuant to Section 25 of this ordinance, to make payments for water supply, transmission or other commodity or service to another person or entity. "Operation and Maintenance Expenses" means all expenses incurred by the City in causing the Waterworks Utility of the City to be operated and maintained in good repair, working order and condition, including without limitation: deposits, premiums, assessments or other payments for insurance, if any, on the Waterworks Utility; payments into pension funds; State imposed taxes; amounts due under Contract Resource Obligations (but only at the times described in Section 25 of this ordinance); payments made to the Cascade Water Alliance as "Member Charges" under the Amended and Restated Interlocal Contract among the members of the Cascade Water Alliance dated December 15, 2004; and other payments made to any other person or entity for the receipt of water supply or transmission or other commodity or service; and payments with respect to any other expenses of the Waterworks Utility that are properly treated as operation and maintenance expenses under generally accepted accounting principles applicable to municipal corporations. Operation and Maintenance Expenses does not include any depreciation or taxes levied or imposed by the City, or payments to the City in lieu of taxes, or capital additions or capital replacements to the Waterworks Utility. Section 2. A. Findings. The City Council finds: 1. All payments required by any ordinance of the City pertaining to Outstanding Parity Bonds of the City have been made into the Bond Fund for the payment of such Outstanding Parity Bonds and no deficiency exists therein; 2. As determined and certified by an professional registered engineer in accordance with Section 19 of Ordinance No. 1676, the revenues of the Waterworks Utility for the twelve -month period commencing September 1, 2005, and ending August 1, 2006, is sufficient, after the payment of normal operation and maintenance costs and taxes, to equal at least 1.25 times the average annual principal and interest requirements of the Outstanding Parity Bonds and the Bonds authorized herein; and 3. Provision is made in Section 10 herein for the payment into the Reserve Account of the cash deposits or Alternate Security in the amounts required by Section 19 of Ordinance No. 1676. B. It is declared that in creating the Bond Fund and in fixing the amounts to be paid into the Bond Fund, as aforesaid, the City Council and corporate authorities of the City have due regard to the cost of operation and maintenance expenses of the Waterworks Utility and to any g P P proportion or part of the gross revenue previously pledged as a fund for the payment of bonds, warrants or other indebtedness or obligations and declare that the City has not set aside into the Bond Fund a greater amount or proportion of that gross revenue and proceeds than in its judgment will be available over and above such cost of operation and maintenance and the debt service and reserve requirements for the presently outstanding Outstanding Parity Bonds and other obligations of that gross revenue. Section 3. Adoption of Plan of Additions. A. The City specifies, adopts and orders to be carried out a system or plan of additions to and betterments and extensions of the Waterworks Utility (the "Plan of Additions" and each element thereof an "Addition described as follows: The City of Tukwila's Neighborhood Revitalization Allentown and Foster Point Sewer Systems Project is the design and construction of wastewater pumping facilities, force mains and 14,100 lineal feet of 8" gravity sewer mains. The primary purpose of the Plan of Additions is to replace 60 -year- old failing septic tanks. The Plan of Additions includes: C:\Documents and Senings\A1l Users\Desktop\Kelly\MSDATA \Ordinances \Bond.doc SK:ksn 11/3/2006 Page 5 of 15 1. Sewer main installation and location of a lift station in each neighborhood; 2. Street widening with ditch and storm drain improvements with new catch basins; 3. Water line improvements to meet fire flow regulations; and 4. Replacement of curb, gutters, and sidewalks along one arterial street. B. The estimated cost of the Plan of Additions, as nearly as may be determined, is declared to be $[3,500,000], all of which is expected to be financed from the proceeds of water and sewer revenue bonds and other obligations of the City. The Plan of Additions may be modified to include other improvements if the City determines by ordinance that those amendments or other improvements constitute a system or plan of additions to and betterments and extensions of the Waterworks Utility. Section 4. Authorization and Description of Bonds. The bonds shall be called Water and Sewer Revenue Bonds, 2006, of the City (the "Bonds shall be in the aggregate principal amount of $[3,500,000]; shall be dated the date of their initial delivery; shall be in the denomination of $5,000 or any integral multiple thereof within a single maturity; shall be numbered separately in the manner and with any additional designation as the Bond Registrar deems necessary for purposes of identification; shall bear interest (computed on the basis of a 360 -day year of twelve 30 -day months) payable semiannually on each June 1 and December 1, commencing June 1, 2007, to the maturity or earlier redemption of the Bonds; and shall mature on December 1 in years and amounts and bear interest at the rates per annum as follows MATURITY INTEREST MATURITY INTEREST YEARS AMOUNTS RATES YEARS AMOUNTS RATES Section 5. Registration and Transfer of Bonds. The Bonds shall be issued only in registered form as to both principal and interest and recorded on books or records maintained by the Bond Registrar (the "Bond Register The Bond Register shall contain the name and mailing address of the owner of each Bond and the principal amount and number of each of the Bonds held by each owner. 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. The Bonds initially shall be registered in the name of Cede Co., as the nominee of The Depository Trust Company, New York, New York "DTC The Bonds so registered shall be held in fully immobilized form by DTC as depository in accordance with the provisions of a Blanket Issuer Letter of Representations dated October 18, 1999 between the City and DTC (as it may be amended from time to time, the "Letter of Representations Neither the City nor the Bond Registrar shall have any responsibility or obligation to DTC participants or the persons for whom they act as nominees with respect to the Bonds regarding accuracy of any records maintained by DTC or DTC participants of any amount in respect of principal of or interest on the Bonds, or any notice which is permitted or required to be given to registered owners hereunder (except such notice as is required to be given by the Bond Registrar to DTC). For as long as any Bonds are held in fully immobilized form, DTC, its nominee or its successor depository shall be deemed to be the registered owner for all purposes hereunder and all references to registered owners, bondowners, bondholders or the like shall mean DTC or its nominee and, except for the purpose of the City's undertaking herein to provide continuing disclosure, shall not mean the owners of any beneficial interests in the Bonds. Registered ownership of such Bonds, or any portions thereof, may not thereafter be transferred except: (i) to any successor of DTC or its nominee, if that successor shall be qualified under any applicable laws to provide the services proposed to be provided by it; (ii) to any substitute depository appointed by the City or such substitute depository's successor; or (iii) to any person if the Bonds are no longer held in immobilized form. C:'.Documents and Settings\All UsersUDesktop1Ke11yMv1SDATAIOrdinances '.Bond.doc SK:ksn 11/3/2006 Page 6 of 15 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 6. Payment of Bonds. Both principal of and interest on the Bonds shall be payable in lawful money of the United States of America. Interest on the Bonds shall be paid by checks or drafts of the Bond Registrar mailed on the interest payment date to the registered owners at the addresses appearing on the Bond Register on the 15` day of the month preceding the interest payment date or, if requested in writing by a registered owner of $1,000,000 or more in principal amount of Bonds prior to the applicable record date, by wire transfer on the interest payment date. Principal of the Bonds shall be payable upon presentation and surrender of the Bonds by the registered owners to the Bond Registrar. Notwithstanding the foregoing, for as long as the Bonds are registered in the name of DTC or its nominee, payment of principal of and interest on the Bonds shall be made in the manner set forth in the Letter of Representations. The Bonds shall be payable solely out of the Bond Fund and shall not be general obligations of the City. Section 7. Optional Redemption; Mandatory Redemption; and Open Market Purchase of Bonds. Bonds maturing in the years 2007 through 2016, 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, 2017, prior to their stated maturity dates at any time on or after December 1, 2016, as a whole or in part (within one or more maturities selected by the City and randomly within a maturity in such manner as the Bond Registrar shall determine), at par plus accrued interest to the date fixed for redemption. ADD FOR TERM BONDS Bonds maturing in are Term Bonds and, 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 randomly (in such manner as the Bond Registrar shall determine) at par plus accrued interest on December 1 in years and amounts as follows: MANDATORY REDEMPTION YEARS MANDATORY REDEMPTION AMOUNTS 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 at least 60 days prior to the earliest mandatory redemption date for that maturity of Term Bonds for which notice of redemption has not already been given. Portions of the principal amount of any Bond, in installments of $5,000 or any integral multiple thereof, may be redeemed. If less than all of the principal amount of any Bond is redeemed, upon surrender of that Bond to the Bond Registrar, there shall be issued to the registered owner, without charge therefor, a new Bond (or Bonds, at the option of the registered owner) of the same maturity and interest rate in any of the denominations authorized by this ordinance in the aggregate principal amount remaining unredeemed. 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. C:1Documents and Settings1A11 Users! Desktop! Kelly \MSDATAIOrdinances\Bond.doc SK :ksn 11/3/2006 Page 7 of 15 All Bonds purchased or redeemed under this section shall be canceled. Notwithstanding the foregoing, for as long as the Bonds are registered in the naive of DTC or its nominee, selection of Bonds for redemption shall be in accordance with the Letter of Representations. Section 8. Notice of Redemption. The City shall cause notice of any intended redemption of Bonds to be given not less than 30 nor more than 60 days prior to the date fixed for redemption by first -class mail, postage prepaid, to the registered owner of any Bond to be redeemed at the address appearing on the Bond Register at the time the Bond Registrar prepares the notice, and the requirements of this sentence shall be deemed to have been fulfilled when notice has been mailed as so provided, whether or not it is actually received by the owner of any Bond. Interest on Bonds called for redemption shall cease to accrue on the date fixed for redemption unless the Bond or Bonds called are not redeemed when presented pursuant to the call. In addition, the redemption notice shall be mailed within the same period, postage prepaid, to Moody's Investors Service and Standard Poor's Rating Services, a Division of The McGraw -Hill Companies, Inc., at their offices in New York, New York, or their successors, to Lehman Brothers Inc., at its principal office in Seattle, Washington, or its successor, to each NRMSIR or the MSRB and to such other persons, including registered securities depositories, and with such additional information as the City Finance Director shall determine, but these additional mailings shall not be a condition precedent to the redemption of Bonds. Notwithstanding the foregoing, for as long as the Bonds are registered in the name of DTC or its nominee, notice of redemption shall be given in accordance with the Letter of Representations. Section 9. Failure to Redeem Bonds. If any Bond is not redeemed when properly presented at its maturity or call date, the City shall be obligated to pay interest on that Bond at the same rate provided in the Bond from and after its maturity or call date until that Bond, both principal and interest, is paid in full or until sufficient money for its payment in full is on deposit in the bond redemption fund hereinafter created and the Bond has been called for payment by giving notice of that call to the registered owner of each of those unpaid Bonds. Section 10. Payments into Bond Fund. The Bond Fund was created by Ordinance No. 334 and has been divided into two accounts, the Principal and Interest Account and the Reserve Account. So long as any Bonds are outstanding against the Bond Fund, the City covenants to set aside and to pay into the Principal and Interest Account and the Reserve Account, out of the gross revenue of the Waterworks Utility, in addition to the amounts required to be paid and retained therein for the Outstanding Parity Bonds certain fixed amounts, without regard to any fixed proportion, and such other money as provided, namely: 1. Into the Principal and Interest Account, there shall be deposited the accrued interest received by the City as partial payment for the Bonds on their delivery; and monthly, beginning with the month of December, 2006, an amount that, together with the accrued interest and other money on deposit therein, will equal at least 1/6 of the next ensuing requirement for interest on the Bonds due and payable on the next interest payment date; and, beginning with the month of December, 2006, an amount that, together with other money on deposit therein, will at least 1/12 of the next ensuing requirement for principal on the Bonds due and payable on the next principal payment date; and 2. Into the Reserve Account, on the date of issue, an amount equal to the average annual debt service of the Bonds (hereinafter referred to as the "Reserve Requirement from funds on deposit in the Reserve Account. The City covenants and agrees that it will at all times maintain in the Reserve Account the required reserves as set forth, except for withdrawals as authorized in this section, until there is a sufficient amount in the Principal and Interest Account and the Reserve Account to pay the principal of and interest on the Outstanding Parity Bonds, the Bonds and any Future Parity Bonds to the final maturity thereof, at which time no further payments need be made into the Bond Fund. The City may at any time substitute an Alternate Security in lieu of all or any part of the cash deposit in the amount of the required reserve in the Reserve Account. If there shall be a deficiency in the Principal and Interest Account to meet maturing installments of either principal of or interest on bonds payable from the Bond Fund, such deficiency shall be made up from the Reserve Account by the withdrawal of cash therefrom for that purpose. Any deficiency created in the Reserve Account by reason of any such withdrawal C: \Documents and SettingslAll Users \Desktop \Kelly \MSDATA \Ordinances \Bond.doc SK:ksn 11/3/2006 Page 8 of 15 then shall be made up from the gross revenue of the Waterworks Utility which shall be first available after required payments into the Principal and Interest Account. The Reserve Account may be accumulated from any other money of the City available therefor in addition to the gross revenue of the Waterworks Utility. All money in the Reserve Account may be kept on deposit in the official bank depository of the City or may be invested and reinvested in Permitted Investments at a fixed price and maturing no later than one month prior to the fmal maturity date of the last outstanding bonds payable out of the Bond Fund. In no event shall any money in the Bond Fund or any other money reasonably expected to be used to pay principal of and/or interest on the Bonds be invested in other than Permitted Investments or at a yield which would cause the Bonds to be arbitrage bonds within the meaning of Section 148 of the Code. If the required reserve is deposited in the Reserve Account, interest earned on any such investment or on such bank deposit in the Reserve Account attributable to the Bonds or Future Parity Bonds shall be deposited into the Principal and Interest Account and used to pay the next interest or principal coming due on bonds payable from the Bond Fund. If the City fails to set aside and pay into the Bond Fund the amounts above set forth, the owner of any of the outstanding bonds payable out of the Bond Fund may bring action against the City to compel such setting aside and payment. Section 11. Pledge of Gross Revenue and Lien Position. The gross revenue of the Waterworks Utility is pledged to the payments required by this ordinance, and the Bonds constitute a charge and lien upon the gross revenue of the Waterworks Utility prior and superior to all other charges of any kind or nature, excluding charges for operation and maintenance, except that the charge and lien on the gross revenue of the Waterworks Utility for the Bonds shall be on a parity with the charge and lien thereon for the Outstanding Parity Bonds and any Future Parity Bonds. Section 12. Form and Execution of Bonds. The Bonds shall be printed or lithographed on good bond paper 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: CERTIFICA I E OF AUTHENTICATION This bond is one of the fully registered City of Tukwila, Washington, Water and Sewer Revenue Bonds, 2006, described in the Bond Ordinance. WASHINGTON STATE FISCAL AGENT Bond Registrar By Authorized Signer The authorized signing of a Certificate of Authentication shall be conclusive evidence that the Bond so authenticated has been duly executed, authenticated and delivered and is entitled to the benefits of this ordinance. If any officer whose facsimile signature appears on the Bonds ceases to be an officer of the City authorized to sign bonds before the Bonds bearing his or her facsimile signature are authenticated'or delivered by the Bond Registrar or issued by the City, those Bonds nevertheless may be authenticated, issued and delivered and, when authenticated, issued and delivered, shall be as binding on the City as though that person had continued to be an officer of the City authorized to sign bonds. Any Bond also may be signed on behalf of the City by any person who, on the actual date of signing of the Bond, is an officer of the City authorized to sign bonds, although he or she did not hold the required office on the date of issuance of the Bonds. Section 13. 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 Registrar is authorized, on behalf of the City, to authenticate C:\Documents and Settings \A11 Users1Desktop\Kelly\MSDATA \Ordinances \Bond.doc SK:ksn 11/3/2006 Page 9 of 15 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 Ordinance No. 1338 establishing a system of registration for the City's bonds and obligations. The Bond Registrar shall be responsible for its representations contained in the Bond Registrar's Certificate of Authentication on the Bonds. The Bond Registrar may become the owner of Bonds with the same rights it would have if it were not the Bond Registrar and, to the extent permitted by law, may act as depository for and permit any of its officers or directors to act as members of, or in any other capacity with respect to, any committee formed to protect the rights of Bond owners. Section 14. Covenants. The City covenants and agrees with the owner of each of the Bonds at any time outstanding, as follows: 1. It will establish, maintain and collect such rates and charges for water and for sanitary sewage disposal service .so long as Outstanding Parity Bonds, Bonds or Future Parity Bonds are outstanding, as will make available, together with interest accruing from investment of money in the Reserve Account and any water and sanitary sewage disposal service surcharge payable under any agreement between the City and any third party, for the payment of the principal of and interest on such bonds as the same shall become due an amount equal to at least 1.25 times the average annual debt service, both principal and interest, of such bonds, after deducting the costs of operation and maintenance of the Waterworks Utility, but before depreciation. 2. It will at all times maintain and keep the Waterworks Utility in good repair, working order and condition, and will at all times operate such Waterworks Utility and the business in connection therewith in an efficient manner and at a reasonable cost. 3. It will not sell, lease, mortgage or in any manner encumber or dispose of all the property of the Waterworks Utility unless provision is made for payment into the Bond Fund of a sum sufficient to pay the principal of and interest on all bonds payable out of the Bond Fund at any time outstanding, and it will not sell, lease, mortgage or in any manner encumber or dispose of any part of the property of the Waterworks Utility that is used, useful and material to the operation thereof, unless provision is made for the replacement thereof, or for payment into the Bond Fund of the total amount of gross revenues received, which shall not be Less than an amount which shall bear the same ratio to the amount of outstanding bonds payable out of the Bond Fund as the revenue of the Waterworks Utility available for debt service for such outstanding bonds for the twelve months preceding such sale, lease, encumbrance or disposal from the portion of the Waterworks Utility sold, leased, encumbered or disposed of bears to the revenues available for debt service for such bonds from the entire Waterworks Utility for the same period. Any such money so paid into the Bond Fund shall be used to retire such outstanding bonds at the earliest possible date. 4. While any of the Bonds remain outstanding, it will keep proper and separate accounts and records in which complete and separate entries shall be made of all transactions relating to the Waterworks Utility, and it will furnish the original purchaser of the bonds or any subsequent owner or owners of the bonds, at the written request of such owner or owners, complete operating and income statements of such waterworks utility in reasonable detail covering any calendar year not more than 90 days after the close of such calendar year, and it will grant any owner or owners of at least 25% of the outstanding Bonds the right at all reasonable times to inspect the entire waterworks utility and all records, accounts and data of the City relating thereto. Upon request of any owner of any such Bonds, it also will furnish to such owner a copy of the most recently completed audit of the City's accounts by the State Auditor of Washington or such other audit as is authorized by law in lieu thereof. 5. It will not furnish water or sanitary sewage disposal service to any customer whatsoever free of charge and will promptly take legal action to enforce collection of all delinquent accounts. 6. It will carry the types of insurance on the properties of the Waterworks Utility in the amounts normally carried by private water and sewer companies engaged in the operation of waterworks utilities, and the cost of such insurance shall be considered a part of operating and maintaining such utility. If, as and when the United States of America or some agency thereof shall provide for war risk insurance, the City further agrees to take out and maintain such C:\Documents and Setdngs\AI1 Users Desktop\ Kelly \4MMSDATA1Ordinances \Bond.doc SK:ksn 11/3/2006 Page 10 of 15 insurance on all or such portions of such utility on which such war risk insurance may be written in an amount or amounts to cover adequately the value thereof. 7. It will pay all costs of operation and maintenance of the Waterworks Utility and the debt service requirements for the Outstanding Parity Bonds and otherwise meet the obligations of the City as herein set forth. 8. It will take all actions necessary to prevent the interest on the Bonds from being included in gross income for federal income tax purposes, and it will neither take any actions nor make or permit any use of proceeds of the Bonds or other funds of the Waterworks Utility treated as proceeds of the Bonds at any time during the term of the Bonds which will cause the interest on the Bonds to be included in gross income for federal income tax purposes. The City further covenants that it has not been notified of any listing or proposed listing by the Internal Revenue Service to the effect that it is a bond issuer whose arbitrage certifications may not be relied upon. Section 15. Small Governmental Issuer Arbitrage Rebate Exception and Designation of Bonds as "Qualified Tax- Exempt Obligations." The City finds and declares that (a) it is a duly organized and existing governmental unit of the state of Washington and has general taxing power; (b) no Bond which is part of this issue of Bonds is a "private activity bond" within the meaning of Section 141 of the United States Internal Revenue Code of 1986, as amended (the "Code (c) at least 95% of the net proceeds of the Bonds will be used for local governmental activities of the City (or of a governmental unit the jurisdiction of which is entirely within the jurisdiction of the City); (d) the aggregate face amount of all tax- exempt obligations (other than private activity bonds and other obligations not required to be included in such calculation) issued by the City and all entities subordinate to the City (including any entity 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) during the calendar year in which the Bonds are issued is not reasonably expected to exceed $5,000,000; and (e) 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 therefore certifies that the Bonds are eligible for the arbitrage rebate exception under Section 148(f)(4)(D) of the Code and designates the Bonds as "qualified tax- exempt obligations" for the purposes of Section 265(b)(3) of the Code. Section 16. Parity Provisions. The City covenants and agrees with the owner of each Bond payable from the Bond Fund at that time outstanding that it will not issue any Future Parity Bonds unless it shall first satisfy the conditions set forth in Section 19 of Ordinance No. 1676, which section is by reference incorporated herein and made a part hereof and shall be applicable to the Bonds so long as any of the same are outstanding. Nothing herein contained shall prevent the City from issuing water and sewer revenue bonds or other obligations which are a charge upon the gross revenue of the Waterworks Utility junior or inferior to the payments required to be made therefrom into the Bond Fund for the payment of the Outstanding Parity Bonds, the Bonds and any Future Parity Bonds. Section 17. Refunding or Defeasance of Bonds. The City may issue refunding bonds pursuant to the laws of the state of Washington or use money available from any other lawful source to pay when due or callable 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 direct obligations of the United States of America 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 the Bonds, for notice of the defeasance to be given to the owners of the defeased Bonds and to such other persons as the City shall determine, and for any required replacement of Bond certificates for C:\Documents and Settings All Users\ Desktop\ Kelly \MSDATA \Ordinances\Bond.doc SK:ksn 11!32006 Page 11 of 15 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 18. Deposit of Bond Proceeds. The principal proceeds received from the sale and delivery of the Bonds shall be paid into the appropriate funds and accounts of the Waterworks Utility as determined by the City's Director of Finance (collectively, the "Construction Fund and used for the purposes specified in Section 3 of this ordinance. Until needed to pay the costs of the Plan of Additions and costs of issuance of the Bonds, the City may invest principal proceeds temporarily in any legal investment, and the investment earnings may be retained in the Construction Fund and be spent for the purposes of that fund except that earnings subject to a federal tax or rebate requirement may be withdrawn from the Construction Fund and used for those tax or rebate purposes. Section 19. Approval of Bond Purchase Contract and Delivery of Bonds. The City Council fords that entering into the Bond Purchase Contract with the Underwriter is in the City's best interest and, therefore, approves and accepts the offer contained therein and authorizes its execution and delivery by City officials. The Bonds will be printed at City expense and will be delivered to the Purchaser in accordance with the terms of the Bond Purchase Contract with the approving legal opinion of Foster Pepper PLLC, municipal bond counsel of Seattle, Washington, regarding the Bonds. The proper City officials are authorized and directed to do everything necessary for the prompt delivery of the Bonds to the Purchaser and for the proper application and use of the proceeds of the sale thereof. Section 20. Preliminary Official Statement Deemed Final. The City Council has been provided with copies of a preliminary official statement dated 2006 (the "Preliminary Official Statement prepared in connection with the sale of the Bonds. For the sole purpose of the Bond purchaser's compliance with Securities and Exchange Commission Rule 15c2- 12(b)(1), the City "deems final" that Preliminary Official Statement as of its date, except for the omission of information as to offering prices, interest rates, selling compensation, aggregate principal amount, principal amount per maturity, maturity dates, options of redemption, delivery dates, ratings and other terms of the Bonds dependent on such matters. Section 21. Undertaking to Provide Continuing Disclosure. To meet the requirements of United States Securities and Exchange Commission "SEC Rule 15c2- 12(b)(5) (the "Rule as applicable to a participating underwriter for the Bonds, the City makes the following written undertaking (the "Undertaking for the benefit of holders of the Bonds: 1. Undertaking to Provide Annual Financial Information and Notice of Material Events. The City undertakes to provide or cause to be provided, either directly or through a designated agent: a. To each nationally recognized municipal securities information repository designated by the SEC in accordance with the Rule "NRMSIR and to a state information depository, if any, established in the state of Washington (the "SID") 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 b. To each NRMSIR or the Municipal Securities Rulemaking Board "MSRB and to the SID, timely notice of the occurrence of any of the following events with respect to the Bonds, if material: (1) principal and interest payment delinquencies; (2) non- payment related defaults; (3) unscheduled draws on debt service reserves reflecting financial difficulties; (4) unscheduled draws on credit enhancements reflecting financial difficulties; (5) substitution of credit or liquidity providers, or their failure to perform; (6) adverse tax opinions or events affecting the tax exempt status of the Bonds; (7) modifications to rights of holders of the Bonds; (8) Bond calls (other than scheduled mandatory redemptions of Term Bonds); (9) defeasances; (10) release, substitution, or sale of property securing repayment of the Bonds; and (11) rating changes; and C:\Documents and Settings\All Users\ Desktop\ Kelly \MSDATA \Ordinances\Bond.doc SK:ksn 11/3/2006 Page 12 of 15 c. To each NRMSIR or to the MSRB, and to the SID, 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. 2. 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: a. Shall consist of (1) annual financial statements prepared (except as noted in the financial statements) in accordance with applicable generally accepted accounting principles promulgated by the Government Accounting Standards Board "GASB as such principles may be changed from time to time, which statements shall not be audited, except, however, that if and when audited financial statements are otherwise prepared and available to the City they will be provided; (2) a statement of authorized, issued and outstanding bonded debt secured by gross revenue of the Waterworks Utility; (3) debt service coverage ratios showing debt service requirements and revenue and operating expenses by category of the Waterworks Utility; and (4) general customer statistics for the Waterworks Utility; b. Shall be provided to each NRMSIR and the SID, 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, 2006; and c. May be provided in a single or multiple documents, and may be incorporated by reference to other documents that have been filed with each NRMSIR and the SID, or, if the document incorporated by reference is a "final official statement" with respect to other obligations of the City, that has been filed with the MSRB. 3. 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, NRMSIR, the SID or the MSRB, under the circumstances and in the manner permitted by the Rule. The City will give notice to each NRMSIR or the MSRB, and the SID, of the substance (or provide a copy) of any amendment to the Undertaking and a brief statement of the reasons for the amendment. If the amendment changes the type of annual financial information to be provided, the annual financial information containing the amended financial information will include a narrative explanation of the effect of that change on the type of information to be provided. 4. Beneficiaries. The Undertaking evidenced by this section shall inure to the benefit of the City and any holder of Bonds, and shall not inure to the benefit of or create any rights in any other person. 5. Termination of Undertaking. The City's obligations under this Undertaking shall terminate upon the legal defeasance of all of the Bonds. -In addition, the City's obligations under this Undertaking shall terminate if those provisions of the Rule which require the City to comply with this Undertaking become legally inapplicable in respect of the Bonds for any reason, as confirmed by an opinion of nationally recognized bond counsel or other counsel familiar with federal securities laws delivered to the City, and the City provides timely notice of such termination to each NRIvIS1R or the MSRB and the SID. 6. 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 holder of a Bond shall be to take such actions as that holder deems necessary, including seeking an order of specific performance from an appropriate court, to compel the City or other obligated person to comply with the Undertaking. 7. 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 the Rule, including, without limitation, the following actions: C:\Documents and Settings\All Users\ Desktop\ Ke11y\MSDATA \Ordinances\Bond.doc SK:ksn 11/3/2006 Page 13 of 15 a. Preparing and filing the annual financial information undertaken to be provided; b. Determining whether any event specified in subsection (a) has occurred, assessing its materiality with respect to the Bonds, and, if material, preparing and disseminating notice of its occurrence; c. Determining whether any person other than the City is an "obligated person" within the meaning of the Rule with respect to the Bonds, and obtaining from such person an undertaking to provide any annual financial information and notice of material events for that person in accordance with the Rule; d. 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 e. Effecting any necessary amendment of the Undertaking. 8. Centralized Dissemination Agent. To the extent authorized by the SEC, the City may satisfy the Undertaking by transmitting the required filings using http: /www.disclosureusa.org (or such other centralized dissemination agent as may be approved by the SEC). Section 22. Bond Insurance. The City Council finds that it is in the City's best interest to purchase, and that a savings will result from purchasing, the Municipal Bond Insurance Policy for the Bonds. The Mayor or Finance Director is hereby authorized to execute the Bond Insurer's Municipal Bond Insurance Commitment. The City shall purchase from the Bond Insurer the Municipal Bond Insurance Policy insuring the prompt payment of the principal of and interest on the Bonds and agrees to the conditions- for obtaining that policy, including the payment of the premium therefor. Section 23. Ratification and Confirmation. All actions of the City or its officers prior to the date hereof and consistent with the terms of this ordinance, including but not limited to the execution of the Transfer Agreements, are ratified and confirmed. Section 24. Surface Water Utility Deemed Part of Waterworks Utility. Pursuant to RCW 35.67.331 the Surface Water Utility of the City is combined with and deemed to be a part of the system of sewerage of the City and therefore, for bond purposes shall be part of the Waterworks Utility. Section 25. Contract Resource Obligations. Upon the redemption or defeasance of all then outstanding 1993 Bonds and 1995 Bonds, a new Section 25 shall be added to read as follows: The City may at any time enter into one or more Contract Resource Obligations for the acquisition, from facilities to be constructed, of water supply,transmission or other commodity or service relating to the Waterworks Utility. The City may determine that, and may agree under a Contract Resource Obligation to provide that, all payments under that Contract Resource Obligation (including payments prior to the time that water supply or transmission or other commodity or service is being provided, or during a suspension or after termination of supply or service) shall be Operation and Maintenance Expenses if the following requirements are met at the time such a Contract Resource Obligation is entered into: 1. No Event of Default has occurred and is continuing. 2. There shall be on file a certificate of an independent professional registered engineer stating that (i) the payments to be made by the City in connection with the Contract Resource Obligation are reasonable for the supply or transmission rendered; (ii) the source of any new supply, and any facilities to be constructed to provide the supply or transmission, are sound from a water or other commodity supply or transmission planning standpoint, are technically and economically feasible in accordance with prudent utility practice, and are likely to provide supply or transmission no later than a date set forth in the independent professional registered engineer's certification; and (iii) the gross revenue of the Waterworks Utility (as estimated by the independent professional registered engineer in accordance with the provisions of and adjustments permitted in Section 19(b) of Ordinance No. 1676 of the City) available for payment of principal of and interest on the Bonds and Future Parity Bonds after payment of CADocuments and Settings\A1l Users\ Desktop\ Kelly \MSDATA\Ordinances\Bond.doc SK:ksn 11/3/2006 Page 14 of 15 Operation and Maintenance Expenses (adjusted by the independent professional registered engineer's estimate of the payments to be made in accordance with the Contract Resource Obligation) for each of the five fiscal years following the year in which the Contract Resource Obligation is incurred, will be at least equal to 1.25 times average annual debt service on the Bonds and Future Parity Bonds. Payments required to be made under Contract Resource Obligations shall not be subject to acceleration. Nothing in this Section shall be deemed to prevent the City from entering into other agreements for the acquisition of water supply, transmission or other commodity or service from existing facilities and from treating those payments as Operation and Maintenance Expenses. Nothing in this Section shall be deemed to prevent the City from entering into other agreements for the acquisition of water supply, transmission or other commodity or service from facilities to be constructed and from agreeing to make payments with respect thereto, such payments constituting a lien and charge on the gross revenue of the Waterworks Utility subordinate to that of the then outstanding Bonds and Future Parity Bonds. Section 26. 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 27. 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 2006. ATTEST/ AUTHENTICATED: Steven M. Mullet, Mayor Jane E. Cantu, CMC, City Clerk Filed with the City Clerk: APPROVED AS TO FORM BY: Passed by the City Council: Published: Effective Date: Office of the City Attorney Ordinance Number: C:\Documents and Settings\Al1 Users Desktop\ Kelly \MSDATA \Ordinances\Bond.doc SK:ksn 11/3/2006 Pale 15 of 15 COUNCIL AGENDA SYNOPSIS fa/J. sy Initials ITE&t NO, Q �1� •1 tbleetin� Date Prepared ared b Mayor's review p by review ounci! nuiety er\ r 10/23/06 1 MC 1 f'-Ovg r9p 11/06/06 1 I Lcl 1 3 ITEM INFORMATION CAS NUMBER: 06-125 I ORIGINAL AGENDA DATE: OCTOBER 23, 2006 AGENDA ITEM TITLE Ordinance for the 2007 Water Rates and Fire Protection Lines CATEGORY Dtscussion Motion 'Resolution Ordinance Bid Award Public Hearing Other Mtg Date 10/23/06 Mtg Date Mtg Date Mtg Date 11/06/06 Mtg Date Mtg Date Mtg Date SPONSOR El Council Ma Adm Svcs DCD Finance Fire Legal P&R Police PIS SPONSOR'S The City last increased water rates in year 2000. With the possibility of wholesale water SUMMARY rates significantly increasing in the future, a rate increase is proposed to maintain rate stabilization. The residential water rate for summer will increase from $2.98 to $3.07 per 100 cubic feet and from $3.83 to $3.94 for commercial /industrial customers. The fire protection lines were last increased in 1996 and these charges defray expenses related to building sprinkler systems and hydrants. REVIEWED BY COW Mtg. CA &P Cmte F &S Cmte Transportation Cmte Utilities Cmte Arts Comm. Parks Comm. Planning Comm. DATE: 10/17/06 RECOMMENDATIONS: SPONSOR /ADMIN. Approve ordinance increasing the City's water fees and fire line charges COMMITTEE Unanimous approval; forward to COW COST IMPACT FUND SOURCE EXPENDITURE REQUIRED AMOUNT BUDGETED APPROPRIATION REQUIRED Fund Source: 401 Water Fund Comments: MTG. DATE 1 RECORD OF COUNCIL ACTION 10/23/06 1 Forward to 11/6/06 Regular Meeting 11/06/06 MTG. DATE 1 ATTACHMENTS 10/23/06 I Exhibit E Ordinance adopting the 2007 Water rates and fire protection line charges Current Tukwila Municipal Code Water Rates 11/06/06 Final Ordinance Comparison of water rates rsoa C ity of Tukwila Washington Ordinance No. AN ORDINANCE OF THE CITY COUNCIL OF THE CITY OF TUKWILA, WASHINGTON, AMENDING ORDINANCE NO. 1766, RELATING TO METERED WATER RATES; REPEALING ORDINANCE NO. 2001 §2; PROVIDING FOR SEVERABILITY; AND ESTABLISHING AN EFFECTIVE DATE. WHEREAS, the City Council desires to have in place an equitable and adequate rate structure to finance the operation, maintenance and debt service requirements, as well as the capital improvement program of the water utility; and WHEREAS, the City Council desires to continue the pass through rate increases received from the City's water supplier; NOW, THEREFORE, THE CITY COUNCIL OF THE CITY OF TUKWILA, WASHINGTON, DO ORDAIN AS FOLLOWS: Section 1. Ordinance No. 1766, as codified at Section 14.04.240 of the Tukwila Municipal Code, is hereby amended to read as follows: 14.04.240 Rates for metered water. A. The rates for metered water supplied within the City for commercial /industrial customers, in one -month increments or any fractional part thereof, shall be in accordance with the following schedule: COMMERCIAL/INDUSTRIAL CUSTOMERS Size of Service Base Charge 1 Size of Service Base Charge 3/4 inch $12.00 1 4 inch $100.00 1 inch 1 $25.00 6 inch $150.00 1 -1/2 inch 1 $35.00 8 inch $200.00 2 inch 1 $50.00 1 10 inch $250.00 3 inch 1 $75.00 1 12 inch $300.00 1 In addition, for each 100 cubic feet of water used, the rate for the monthly billing shall be as follows: January —May $2.86 per 100 cubic feet June September $3.94 per 100 cubic feet October December $2.86 per 100 cubic feet B. Single family customers (one dwelling unit): The base water charge will be $6.00 for each account. In addition, for each 100 cubic feet of water used, the rate shall be as follows: January —May $2.21 per 100 cubic feet June September $3.07 per 100 cubic feet October—December $2.21 per 100 cubic feet C: \Documents and Settings \All Users\ Desktop \Kelly \MSDATA \Ordinances \Water and Fire Protection Water Rates.doc GL:ksn 11/2/2006 Page 1 of 3 C. Multi- family customers (more than one dwelling unit): The base water charge will be $6.00 for each dwelling unit. ht addition, for each 100 cubic feet of water used, the rate shall be as follows: January —May $2.21 per 100 cubic feet June September $3.07 per 100 cubic feet October December $2.21 per 100 cubic feet D. Every person 62 years of age or older (if married, then either spouse) and every person totally and permanently disabled residing in a separately metered dwelling and who is paying directly for such separately billed service either as owner, purchaser or renter and whose individual disposable income if a single person, or whose combined disposable income, if a married couple, from all sources is less than $32,000 per year, shall pay a rate equal to 50% of all water service charges. Every such person shall file with the Finance Department their affidavit that he or she is qualified to be charged the special rate. Such affidavits are to contain information as required by the Finance Director in order to establish eligibility. Each affidavit will also include an unqualified promise to inform the City of any changes in financial condition that would disqualify the person for the special rates. The Finance Director may require affidavits on an annual basis if deemed necessary. E. These rates will remain in effect for the corresponding periods thereafter, unless there is an increase in the cost of purchased water to Tukwila. At such time, the City will amend its rates charged to customers per cubic feet by a mark -up percentage in order to recover these direct costs. Section 2. Ordinance No. 1766, as codified at Section 14.04.250 of the Tukwila Municipal Code, is hereby amended to read as follows: 14.04.250 Fire Protection. A. Any service connection to the main for a fire sprinkler system shall be approved in advance by the City, and shall be installed at the expense of the owner, and fitted only with such fixtures as are needed for fire protection and must be entirely disconnected from those used for other purposes. B. Any service connection other than fire sprinkler installed on private property for fire protection, and fitted with fire hydrants, stand pipes or other outlets for fire protection shall be approved in advance by the City. C. It is unlawful for any person to fail, neglect or refuse to give the supervisor or his duly authorized representative free access at all reasonable hours to all parts of premises supplied with water from the City mains, for the purpose of inspecting the condition of pipes, and fixtures, and noting the amount of water being used and the manner in which it is used. D. The rate for water supplied for fire protection purposes exclusively, shall be deemed service charges and shall be, for any one month or fractional part thereof, as follows: Size of Service 1 Base Charge Size of Service 1 Base Charge 1 2 inch 6.00 8 inch 1 96.00 3 inch $13.50 1 10 inch $150.00 4 inch 1 $24.00 1 12 inch $216.00 1 6 inch 1 $54.00 1 Water used for any other purpose than for fire protection service shall be deemed as Theft III. C: \Documents and Settings \All Users Desktop Kelly \MSDATA Ordinances \Water and Fire Protection Water Rates.doc GL:ksn 11 /2/2006 Page 2 of 3 Section 3. Repealer. Ordinance No. 2001 §2, as codified at 14.04.240 of the Tukwila Municipal Code, is hereby repealed. 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 2006. ATTEST AUTHENTICATED: Steven M. Mullet, Mayor Jane E. Cantu, CMC, City Clerk Filed with the City Clerk: APPROVED AS TO FORM BY: Passed by the City Council: Published: Effective Date: Office of the City Attorney Ordinance Number: C: \Documents and Settings \All Users \Desktop \Kelly \MSDATA \Ordinances \Water and Fire Protection Water Rates.doc P'7 VP 3 of 3 CD CO O O CD O O O 0 CI O N N if) LC) Tt LC) r` C) 03 Q M M ti O N N 6 r` CA 6 N N N C) C) Co) M M C) M 1- EA. EA EA. El3 EA. ER EA. EA El, EA. EA. O I- s- a) C G ti O Q 0 O O O O O O O O O O O d' O in r O Cr) r CD 0 Cr) Z y N u9 E Ln O r co N o.) N N N N CO N N o '2 ma c u EA 69- EA- 69- 69 Ea 69- 69- 69 69- CO V V 0 N r Q .a d G. -1' u. LC) LO 0 ix) r 0 co r co 0 M M G) o 1.0 O 00 r 0). CT) CO LO 0) r` O j 0 O r N N r N N N N N N Ce III E CO i_ 0 CO N O O CD 0 LO 0 0 CO O N W W I- co co o co In v O to M 11, g Q 1- a r` N I` LO r O r'— P- 00 O N r r r r r W W M 69- 69- 69- 61- 69- 69- 69- 6F} V> En- E9 Q o 0 a O N Ln I- Q N V w ry L11 0 Q W U) W Q U Z o w U Z CC Z O Q Q Q Z J Z �O Ill Z U Q O co i2 C O U I— J Z w Y OU m Z..,- O 5-> m C) J I-- Q I CL Y u) 2 O (A O U co COUNCIL AGENDA SYNOPSIS ivs i t Initials ITEM NO, J I P1 ∎Iy Meeting Date Prepared b 1 it fa •or's review ouncil review .1)• 1 10/23/06 1 MC I I 11/06/06 1 1 �'t. I 5. c ITEM INFORMATION CAS NUMBER: 06-124 I ORIGINAL AGENDA DATE: OCTOBER 23, 2006 AGENDA ITEM TITLE Resolution for Public Works Fee Schedule for the 2007 Sewer and Surface Water Rates. CATEGORY Discussion Motion ®$esolution Ordinance Bid Award Public Hearing Other Mtg Date 10/23/06 Mtg Date tbftg Date Mtg Date Mtg Date Mtg Date Mtg g Date 11/06/06 SPONSOR Council Mayor Adm Svcs DCD Finance Fire Legal P&R Police PW SPONSOR'S The City's sewer rate change is needed to meet operational and capital expenditures for SUMMARY the sewer enterprise fund. The monthly residential flat rate will increase from $8.00 to $8.80 per residential connection, and from $14.00 to $15.40 for up to 750 cubic feet or fraction thereof for the commercial /industrial customers. The sewer charges are included in the Resolution setting the Public Works fee schedule. REVIEWED BY COW Mtg. El CA &P Cmte F &S Cmte Transportation Cmte Utilities Cmte Arts Comm. Parks Comm. Planning Comm. DATE: 10/17/06 RECOMMENDATIONS: SPONSOR /ADMIN. Approve resolution increasing the City's sewer fees COMMITTEE Unanimous approval; forward to COW COST IMPACT FUND SOURCE EXPENDITURE REQUIRED AMOUNT BUDGETED APPROPRIATION REQUIRED Fund Source: 402 Sewer Fund Comments: MTG. DATE I RECORD OF COUNCIL ACTION 10/23/06 Forward to 11/6/06 Regular Meeting 11/06/06 1 MTG. DATE I ATTACHMENTS 10/23/06 Exhibit D Resolution adopting the 2007 Public Works Fee Schedule Comparison of Single Family Sewer Rates from neighboring jurisdictions 11/06/06 1 Final Resolution E4-• ate. /s0a C ity of Tukwila Washington Resolution No. A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF TUKWILA, WASHINGTON, ADOPTING A NEW PUBLIC WORKS FEE SCHEDULE, WHICH AMENDS VARIOUS FEES REGARDING SURFACE WATER AND SEWAGE. WHEREAS, each year the City analyzes the rate model for the three utility enterprise funds— water, sewer and surface water; and WHEREAS, the City needs to recoup a greater percentage of the cost of operating and maintaining its infrastructure for water, sewer and surface water utilities; and WHEREAS, Tukwila s fees are significantly lower than the average of neighboring jurisdictions; NOW, THEREFORE, THE CITY COUNCIL OF THE CITY OF TUKWILA, WASHINGTON, HEREBY RESOLVES AS FOLLOWS: Section 1. Public Works fees will be charged according to the following schedule: Public Works Fee Schedule Permit Description 1 Fee 1 Type A (Short-Term Nonprofit) 1 $50 Type B (Short -Term Profit) 1 $100 $250 application base fee, plus four components based on construction value: Type C 1) Plan Review (Disturbance of City Right -of -Way) 2) Construction Inspection 3) Pavement Mitigation 4) Grading Plan Review 1 Type D (Long -Term) 1 $100 Type E (Potential Disturbance of $100 City Right -of -Way) Type F (Blanket Permits) $250 processing fee, plus $5,000 cash deposit, withdraw $100 /instance for inspection 1 Additional Inspections 1 $47 per inspection 1 Franchise- Telecommunications 1 $5,000 administrative fee 1 Franchise Cable 1 $5,000 plus 5% of total revenue 1 Street Vacation 1 $1,200 Latecomer's Agreements $500 processing fee, plus 17% administrative fee, plus $500 segregation fee 1 Flood Zone Control 1 $50 C:1Documents and SettingsUUl Usersl DesktoplKelly \MSDATA\Resolutions\PW Fees.doc GL:ksn 1112/2006 Page 1 of 2 Public Works Fee Schedule (Continued) Water Meter Installation .75" $600 1" $1,100 1.5" $2,400 2" $2,800 3" $4,400 4" $7,800 6" $12,500 Water Meter Deduct I $25 I Copy of City of Tukwila's $50 Infrastructure Design and Construction Standards Residential Sewer Service Flat rate of $8.80 per month (single dwelling unit) (TMC 14.16.030, No. 1) Residential Sewer Service (multiple Flat rate $8.80 per month for each dwelling unit dwelling unit, permanent type) (TMC 14.16.030, No. 2) Commercial and Industrial Sewage Flat rate of $15.40 per month and, in addition, Service any usage over 750 cubic feet of water per month shall be at the rate of $15.40 per 750 cubic feet (TMC 14.16.030, No. 4) Sewer Late Charge $5 per month on sewer accounts more than 30 days in arrear (TMC 14.16.030, No. 5) Surface Water Utility Rates Service Service Charge Per Per Year Category: Charge Per Acre 4,356 Square Feet 1. Natural $77.00 $7.70 2. 0 -20% Developed Surface $167.30 $16.73 3. 21 -50% Developed Surface $306.70 $30.67 4. 51 -70% Developed Surface $457.70 $45.77 5. 71-85% Developed Surface $551.30 $55.13 6. 86 -100% Developed Surface $643.20 $64.32 7. Single Family Residential Parcels $62.00 per parcel N/A PASSED BY THE CITY COUNCIL OF THE CITY OF TUKWILA, WASHINGTON, at a Regular Meeting thereof this day of 2006. ATTEST /AUTHENTICATED: Dennis Robertson, Council President Jane E. Cantu, CMC, City Clerk APPROVED AS TO FORM BY: Filed with the City Clerk: Passed by the City Council: Office of the City Attorney Resolution Number: C:\Documents and SettingsWl Users Desktop \Kelly\MSDATA\Resolutions\PW Fees.doc GL:ksn 11/2/2006 Page 2 of 2 Co UNCIL AGENDA Sv'NOPSIS o,. z Initials ITEN1No. P�t ?vIeeting Date Prepared by 1 Mayor's review Councj review f= 10/23/06 1 MC 1 f_ 1 11/06/06 2 ck 1 1 1 ITEM INFORMATION CAS NUMBER: 06-123 I ORIGINAL AGENDA DATE: OCTOBER 23, 2006 AGENDA ITEM TITLE Metropolitan King County Sewer Rate Pass through for 2007 Sewage Disposal Fees CATEGORY Discussion Motion ❑'Resolution Ordinance Bid Award Public Hearing Other Mtg Date 10/23/06 Mtg Date Mtg Date Mtg Date 11/06/06 Mtg Date Mtg Date Mtg Date SPONSOR Council Nlayor Adm Svcs DCD Finance Fire Legal P&R Police PLY/ SPONSOR'S Metropolitan King County has adopted Ordinance No 15522 increasing the 2007 monthly SUMMARY sewer fee from $25.60 per month to $27.95 per residence or per residential equivalent for King County component agencies. As a component agency, Tukwila passes these costs on to their sewer customers. The King County Metro sewage capacity charge will also increase from $34.05 per month to $42.00 in 2007. REVIEWED BY COW Mtg. CA &P Cmte F &S Cmte Transportation Cmte Utilities Cmte Arts Comm. Parks Comm. Planning Comm. DATE: 10/17/06 RECOMMENDATIONS: SPONSOR /ADMIN. Approve ordinance increasing the King County Metro sewer fees COMMITTEE Unanimous approval; forward to COW COST IMPACT FUND SOURCE EXPENDITURE REQUIRED AMOUNT BUDGETED APPROPRIATION REQUIRED Fund Source: 402 Sewer Fund Comments: MTG. DATE I RECORD OF COUNCIL ACTION 10/23/06 1 Forward to 11/6/06 Regular Meeting 11/06/06 MTG. DATE ATTACHMENTS 10/23/06 1 Information Memo dated October 11, 2006 Utility Rate Matrix Exhibit B Metropolitan King County Adopted Ordinance No. 15522 Exhibit C City of Tukwila Ordinance Tukwila Ordinance No. 2059 Utilities Committee Meeting Minutes from October 17, 2006 11/6/06 j Final Ordinance Of f t f N' j 7908. City of Tukwila Washington Ordinance No. AN ORDINANCE OF THE CITY COUNCIL OF THE CITY OF TUKWILA, WASHINGTON, AMENDING ORDINANCE NO. 1714, AS CODIFIED AT TUKWILA MUNICIPAL CODE SECTION 14.16.065, TO RAISE THE CITY/METRO RATE FOR SANITARY SEWER SERVICE DUE TO AN INCREASE BY THE METROPOLITAN KING COUNTY COUNCIL; REPEALING ORDINANCE NO. 2059; PROVIDING FOR SEVERABILITY; AND ESTABLISHING AN EFFECTIVE DATE. WHEREAS, the Metropolitan King County Council has notified the City of its intent to increase its monthly charges to the City for sanitary sewage disposal from the present $25.60 per month per residential equivalent to $27.95 per month per residential equivalent, said increase to be effective January 1, 2007; and WHEREAS, it is necessary for the City to pass this increase onto customers of the City sewer system; NOW THEREFORE, THE CITY COUNCIL OF THE CITY OF TUKWILA, WASHINGTON, DO ORDAIN AS FOLLOWS: Section 1. City/Metro Rate. Ordinance No. 1714, as codified at TMC Section 14.16.065, is hereby amended to read as follows: 14.16.065 City/Metro Rate. A. Regular Rate: The City/Metro charges as provided in Section 14.16.060 and as required by the Agreement for Sewage Disposal between METRO and the City of Tukwila is set at the sum of $27.95 (effective 1/1/07) per month per residential customer and per residential customer equivalent as now defined or hereafter amended in the agreement for sewage disposal between METRO and the City of Tukwila. B. Reduced Rate: Every person 62 years of age or older (if married, then either spouse) and every person totally and permanently disabled residing in a separately metered dwelling and who is paying directly for such separately billed service either as owner, purchaser or renter and whose individual disposable income, if a single person, or whose combined disposable income, if a married couple, from all sources is less than $32,000 per year, shall pay a rate equal to 50% of the City /METRO charge. Every such person shall file with the Finance Department their affidavit that he or she is qualified to be charged the special rate. Such affidavits are to contain information as required by the Finance Director in order to establish eligibility. Each affidavit will also include an unqualified promise to inform the City of any changes in financial condition that would disqualify the person for special rates. The Finance Director may require affidavits on an annual basis if deemed necessary. Section 2. Repealer. Ordinance No. 2059 is hereby repealed. C:1Documents and SettingslAll Users\ Desktop \Kelly\MSDATA`Ordinances\King County Sewer Rates.doc GL:ksn 11/2/2006 Page 1 of 2 Section 3. 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 4. 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 2006. ATTEST AUTHENTICATED: Steven M. Mullet, Mayor Jane E. Cantu, CMC, City Clerk Filed with the City Clerk: APPROVED AS TO FORM BY: Passed by the City Council: Published: Fffective Date: Office of the City Attorney Ordinance Number: C:1Documents and SeningslAll Usersl DesktoplKelly1MSDATA IOrdinances\King County Sewer Rates.doc GL:ksn 112/2006 Page 2 of 2 COUNCIL AGENDA SYNOPSIS 1 1LA, cn O k y�' I n i t i a l s ITEM NO. J 1 Ivieetin Date Prepared by Mayor's review Council review i 10/23/06 1 rb 1 1 11/06/06 I I .y ;—E I 1 e rsoa I I I I I ITEM INFORMATION CAS NUMBER: 06-127 ORIGINAL AGENDA DAIL: 10/23/06 AGENDA ITEM TITLE Clarification of Resolution #1475 regarding medical benefits for employee dependents CATEGORY Discussion Motion Resolution Ordinance ['Bid Award Public Hearing Other Mtg Date 10/23/06 Mtg Date Mtg Date 11/6/06 Mtg Date Mtg Date Mtg Date Mtg Date SPONSOR Council Mayor Adm Svcs DCD Finance Fire Legal P &R Police PW SPONSOR'S Recent military deployments of Tukwila employees has required examination and SUMMARY clarification of Resolution #1475 regarding medical benefits for employee dependents. Resolution #1475 states "The premium cost for this coverage shall be paid for by the City of Tukwila." When the resolution was passed, all premium costs were borne by the City. Beginning January 2006, employees have been subject to a premium share. It is requested the Council clarify the intent of Resolution #1475. REVIEWED BY COW Mtg. CA &P Cmte F &S Cmte Transportation Cmte Utilities Cmte Arts Comm. Parks Comm. Planning Comm. DAZE: 10/23/06 RECOMMENDATIONS: SPONSOR /ADMIN. Consideration by the City Council COMMI 1 "1'EE COST IMPACT FUND SOURCE EXPENDITURE REQUIRED AMOUNT BUDGETED APPROPRIATION REQUIRED $0 Fund Source: Comments: I MTG. DATE I RECORD OF COUNCIL ACTION 10/23/06 Forward to 11/6/06 Regular Meeting I MTG. DATE I ATTACHMENTS 10/23/06 Information Memo dated 10/20/06 Resolution #1475 11/6/06 1 Final Resolution with additional sentence added to Section 3 per Council consensus NNILA..� ,'O, ,�1908� Cityof Tukwila Washington Resolution No. A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF TUKWILA, WASHINGTON, AMENDING RESOLUTION NO. 1475, WHICH PROVIDES EXTENDED MEDICAL, DENTAL AND VISION COVERAGE FOR EMPLOYEES' DEPENDENTS WHILE EMPLOYEES ARE ON ACTIVE DUTY MILITARY LEAVE FROM THE CITY, TO REFLECT CHANGES IN THE CITY'S HEALTH CARE PROVISIONS. WHEREAS, on October 1, 2001 the Tukwila City Council passed Resolution No. 1475, which provided extended medical, dental and vision coverage for the dependents of City employees who are called for active military duty; and WHEREAS, the City wishes to continue that coverage and wants the resolution to reflect changes in the City's health care coverage; NOW, THEREFORE, THE CITY COUNCIL OF THE CITY OF TUKWILA, WASHINGTON, HEREBY RESOLVES AS FOLLOWS: Resolution No. 1475, passed on October 1, 2001, is hereby amended to read as follows: Section 1. That the City of Tukwila will hereby provide extended medical, dental and vision coverage for employees' dependents while the employee is serving on active duty, for a period not to exceed one year from the date the employee is called to active duty. Section 2. The medical, dental, and vision benefits shall be at the level and under the terms provided to the employees' dependents as if the employee was not on active military d4r from the City. Section 3. The premium cost and any employee share amount for this coverage shall be paid for by the City of Tukwila. PASSED BY THE CITY COUNCIL OF THE CITY OF TUKWILA, WASHINGTON, at a Regular Meeting thereof this day of 2006. ATTEST /AUTHENTICATED: Dennis Robertson, Council President Jane E. Cantu, CMC, City Clerk APPROVED AS TO FORM BY: Filed with the City Clerk: Passed by the City Council: Office of the City Attorney Resolution Number: C: \Documents and Settings \All Users \Desktop\ Kelly \MSDATA \Resolutions \Medical Benefits.doc ksn 11/2/2006 Page 1 of 1 COUNCIL AGENDA SYNOPSIS 0, am 2 l tifeetizz Date by Mayor Ltitralr ITEM NO. Q N X Prepared 1 s review oun4! review III IS t I 10/09/06 1 Diane 14.31.1.e c o." 10/16/06 1 1 '�s,1 10/23/06 1 1 1 11/06/06 A ,AI— 1 1S ITEM INFORMATION CAS NUMBER: 06-116 I ORIGINAL AGENDA DA 1E: 10/09/06 AGENDA ITEM TITLE Review of Proposed 2007 Budget and CIP CATEGORY Discussion Motion Resolution Ordinance ['Bid Award Public Hearing Other zlItg Date 11/6/06 Mtg Date Mtg Date Mtg Date Mtg Date Mtg Date Mtg Date SPONSOR Council Mayor Adm Svcs DCD Finance Fire Legal 0 P&2R Police PW SPONSOR'S As the committees review portions of the budget, this information will be reviewed and SUMMARY discussed at the upcoming Committee of the Whole and Regular meetings. A copy of the schedule to review the Proposed 2007 Budget and Capital Improvement Program (CIP) is attached. REVIEWED BY COW Mtg. CA &P Cmte F &S Cmte Transportation Cmte Utilities Cmte Arts Comm. Parks Comm. Planning Comm. DATE: All Committees (per attached schedule) RECOMMENDATIONS: SPONSOR /ADMIN. COMMITTEE COST IMPACT FUND SOURCE EXPENDITURE REQUIRED AMOUNT BUDGETED APPROPRIATION REQUIRED Fund Source: Comments: MTG. DATE I RECORD OF COUNCIL ACTION 10/9/06 Kevin Fuhrer, Finance Director, introduced the 2007 Proposed Budget and CIP; Budget and CIP sent to council committees to begin the review process. MTG. DATE I ATTACHMENTS 10/09/06 1 Information Memo dated 10/5/06 2007 Proposed Budget CIP Review Schedule 10/16/06 l Memo dated 10/12/06; Proposed 2007 Budget and CIP Council review for 10/16 mtg; Proposed committee review schedule and chart. 10/23/06 1 Revised 2007 Budget and CIP Review Schedule 11/06/06 1 Revised 2007 Budget and CIP Review Schedule MEMORANDUM October 26, 2006 TO: Members, Tukwila City Council FR: Diane Jenkins, Administrative Assistant RE: Review of Proposed 2007'Budget CIP Attached are the revised schedules for the review of the Proposed 2007 Budget and Capital Improvement Program (CIP) by committees and the Council. Listed below are the changes Capital Items Summary was not reviewed at the 10/23 meeting and will be reviewed on Monday, 11/6. {NOTE: Pam Carter brought to my attention that the following items were scheduled for review in Utilities Committee on 11/7 and yet were scheduled to be reviewed by the Council on 11/6.1 The 302 303 Funds will not be reviewed at Monday's meeting, 11/6, but will be delayed until 11/13. Also, the ESA (Endangered Species Act) Parks projects and Equipment Rental portions of the budget were scheduled to be reviewed in Utilities Committee on 11/7. The ESA Parks projects are slated as "future projects and beyond." Since the information has been reviewed by Community Affairs and Parks (CAP), the portion of the budget will be removed for review by Utilities Committee and will be scheduled to be reviewed by Council at Monday's meeting, 11/6. The Equipment Rental fund was reviewed on 10/9 by Transportation and 10/16 by the Council. So, this portion of the budget will also be removed for review by Utilities Committee. Please bring your copy of the Proposed 2007 Budget and CIP to each of the upcoming committee meetings (Transportation, Utilities, Finance Safety, and Community Affairs and Parks), Committee of the Whole meetings, and Regular Council meetings. 2007 Proposed Budget Capital Improvement Program (CIP) Review Schedule Monday. 11/06/06 Regular Council Meeting Planning Commission pg. 38 Residential Streets DCD Dept. pg. 73 -82 CIP pg. 1 -4 Golf Bridges Arterial Streets CIP pg. XXI -XXII, 167 -168 CIP pg. 30 -69 Budget pg. 164 -167 Capital Items Summary pg. 179 -180 Arts Commission pg. 40-41 Park Commission pg. 42 -43 Library Advisory Board pg. 44 2007 Proposed Budget Capital Improvement Program (CIP) Review Schedule Committee of the Whole Regular Council Meetings November 2, 2006 NOTE: Depending on the review of this information in Council Committees, this schedule may be amended. Monday, 10/09/06 Committee of the Whole Highlights of 2007 Proposed Budget, by Kevin Fulzrer, Director of Finance Monday. 10/16/06 Regular Council Meeting PW Administration /Streets General Gov 303 Fund PW Budget pg. 117 -135 Budget pg. 151 Residential Streets Eauio Rental 501 Fund Budget pg. 138 -139 Budget pg. 173 -175 Bridaes GGFAM Comm Arterial Streets Budget pg. 140 -142 Human Services pg. 36 -37 Human Services Agencies pg. 181 -182 Facilities 302 Fund Budget pg. 150 Monday. 10/23/06 Committee of the Whole Meeting CIP General All Policies pg. 1 -VI Water Planning Model, Att. A B pg. VII -X CIP pg. XV -XVI, 77 -111 Planning Model, Att. C pg. XI -XIV Budget pg. 153 -157 Police Department pg. 83 -98 Sewer Hotel /Motel Tax pg. 137 CIP pg. XVII- XVIII, 112 -137 Budget pg. 158 -163 Surface Water CIP pg. XIX XX, 138 -166 Budget pg. 168 -172 Committee of the Whole /Regular Council 2007 Budget Review Schedule Page 2 Monday. 11/06/06 Regular Council Meetina Residential Streets Planning Commission pg. 38 CIP pg. 1 -4 DCD Dept. pg. 73 -82 Bridges Arterial Streets Golf CIP pg. 30 -69 CIP pg. XXI -XXII, 167 -168 Budget pg. 164 -167 Capital Items Summary pg. 179 -180 Arts Commission pg. 40-41 Park Commission pg. 42 -43 Library Advisory Board pg. 44 Monday, 11/13/06 Committee of the Whole Meeting Municipal Court pg. 45 -46 Insurance LEOFF pg. 177 Admin Services pg. 48 -54 Firemen's Pension pg. 178 Fire Department pg. 99 -116 Fire Equip Reserve pg. 144 General Gov 303 Fund Revenues All Funds pg. 1 -25 CIP pg. 70 -71 City Council pg. 27- 30 Budget pg. 151 Mayor's Office pg. 31- 34 Sister City Committee pg. 35 Facilities 302 Fund Equity Diversity pg. 39 CIP pg. 72 -76 Finance pg. 55 -60 Budget pg. 150 Dept 20 Fund pg. 136 PW Administration Financial Policies pg. 200 -203 Budget pg. 117 -135 Projected Debt Capacity pg. 204 Note: Previously reviewed by Council 10/16, Contingency Fund pg. 143 however, will not be reviewed by Utilities until 11/7. Debt Service pg. 145 148 Changes from Utilities Committee will be highlighted. 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November 6 13 20 27 IOih Public Hearing: Special Presentation: See agenda packet Renewal of moratorium "Treasure of Tukwila" Veterans Day cover sheet for this (City offices closed) week's agenda within the transit- award. oriented development Appointments: 23'a 24th (November 6, 2006 planning area. Thanksgiving, and day Regular meeting). Library Advisory after Thanksgiving Special Issues: Board (City offices closed) An ordinance Lodging Tax renewing the Advisory Board moratorium within Unfinished Business: the transit oriented An ordinance development planning area. renewing the moratorium within An ordinance the transit- oriented establishing a specific development criteria for planning area. maintenance of vacant structures. A resolution approving a land use fee schedule. Tukwila Intl. Blvd. (Phases 2 3)— construction cost increases vs. budget. Bid award for Tukwila Urban Center Signal Interconnect ITS Traffic Signal Uninterruptible Power Supply Units. Construction contract price increases (discussion only). An ordinance regarding 2007 property tax increase. Continuation of review of Proposed 2007 Budget and CIP. December 4 11 18 25 Special Presentation: 25th Recycler of the Year Christmas Day award (to be presented City offices closed (City offices closed) to a local recycler) Public Hearing: Proposed 2007 Budget and CIP. Upcoming Meetings Events NOVEMBER 2006 6th (Monday) 7th (Tuesday) 8th (Wednesday) 9th (Thursday) 10th (Friday) llth (Sat.) >Finance Chamber of CITY COUNCIL Safety Cmte, Commerce Gov't. Performance by SPECIAL MEETING Veterans Day 5:00 PM Community Clay Jenkinson (Work Session) (observed) (CR #3) Affairs Cmte., appearing as Update on Tukwila City offices 12:00 NOON Thomas Jefferson Intl. Blvd (betwee closed City Council (Chamber Office) 7:00 PM S. 154th St. to Regular Mtg., S. 130th Sr. and Cadle Theatre at 7:00 PM Arts Commission, Lake Washington adjacent (Council 5:00 PM High School neighborhoods 4 1r Chambers) (Community Center) (12033 NE 80th St.,. including Kirkland) development, Utilities Cmte, Call 206- 674 -4673 or infrastructure, traffic, 5:00 PM (CR 41) www.tukwilarotary.org demographics, safety and more. El 6:00 to 8:30 PM VOTE! General Showalter Middle Election Day School Cafeteria (4628 S. 144th St.) Performance by Clay Jenkinson appearing as John Wesley Powell 7:00 PM Tukwila Performing Arts Center at Foster High School (4242 S. 144th St.) Call 206-674-4673 or www.tukwilarotary.org 13th- (Monday) 14th (Tuesday) 15th (Wednesday) 16th (Thursday) 17th (Friday). 18th (Sat:) Transportation Community Affairs Crime Hot Spots Domestic Chipper Cmte, Parks Cmte, Task Force Mtg., Violence Task Day 5:00 PM 5:00 PM 10:00 AM Force, (CR 41) (CR #3) (CR #5) 12:00 NOON 10:00 Ali to (CR #5) I:OO PM Civil Service Highway 99 Parks Commission, J Commission, Action Cmte, 5:30 PM CITY COUNCIL 7tir 5:00 PM 7:00 PM (Community Center) SPECIAL MEETLNG (CR 63) (Community Center) (Work Session) Library Advisory Update on Tukwila City Council Board, Int'l. Blvd. Committee of 7:00 PM 6:00 to 8:30 PM the Whole Mtg., (Foster Library) Showalter Middle 7:00 PM School Cafeteria (Council COMMUNITY MEETING (continued from Chambers) Duwamish Riverbe Nov. 9th meeting) Hill Draft Master Plan 7:00 to 8:30 PM (Tukwila Community Center) Arts Commission: 1st Tues., 5:00 PM, Tukwila Community Center. Contact Kimberly Matej at 206 767 -2342. >Chamber of Commerce's Tukwila Government and Community Affairs Committee: 1st Tues., 12:00 Noon, Chamber Offices. Contact Nancy Damon at 206 -575 -1633. Chipper Days, sponsored by the Wash. State Dept. of Agriculture: 3rd Sat., 10:00 Am to 1:00 PM, Foster HS main parking lot. Dispose of prunings and plant materials from the longhorned beetle quarantine area. Drive your truckload of materials to the lot and help will be provided to unload, chip, and dispose of materials free of charge. Be sure to bring ID with quarantine area address. 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: 2nd Mon., 5:00 PM, Conf. Room 63. Contact Bev Willison at 206- 933 -1844. Community Affairs Parks Committee: 2nd 4th Tues., 5:00 PM, Conf. Room 43. Crime Hot Spots Task Force: 3rd Wed., 10:00 AM, Conf. Room #5. Contact Marjo Murray at 206 433 -7175. Domestic Violence Task Force: 3rd Thurs., 12:00 Noon, Conf. Room 45. Contact Evie Boykan or Stacy Hansen at 206 -433 -7180. Finance Safety Committee: 1st 3rd Mon., 5:00 PM, Conf. Room 63. Agenda items for 11/6/06 meeting: (A) Resolution approving a land use fee schedule. (B) 2007 proposed property tax increase. (C) Continued review of the Proposed 2007 Budget and CIP. (D) 2006 Third Quarter Report. >Highway 99 Action Committee: 2nd Tues., 7:00 PM, Tukwila Community Center. Contact Chief Dave Haynes at 206 -433 -1812. Library Advisory Board: 3rd Wed., 7:00 PM, Foster Library. Contact Bruce Fletcher at 206- 767 -2343 Parks Commission: 3rd Wed., 5:30 PM, Senior Game Room at Community Center. Contact Kimberly Matej at 206 -767 -2342. Planning Commission/Board of Architectural Review: 4th Thurs., except 2nd Thursday in Nov. Dec., 7:00 Pm, Council Chambers at City Hall. Contact Wynetta Bivens at 206- 431 -3670. ➢Transportation Committee: 2nd 4th Mon., 5:00 PM, Conf. Room 61. Utilities Committee: 1st 3rd Tues., 5:00 PM, Conf. Room 41. Agenda items for 11 /7/06 meeting: (A) Continued review of the Proposed 2007 Budget and CIP. (B) 2006 Third Quarter Report.