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HomeMy WebLinkAboutCOW 2003-05-27 Item 4C - Resolution - Intent to Reimburse Capital Expenditures for Arterial Street ProjectsMeeting Date 1 5/27/03 Recommendations: Sponsor: Committee: Administration: Cost Impact (if known): N/A Fund Source (if known): N/A Meeting Date 5/27/03 5/27/03 5/27/03 COUNCIL AGENDA SYNOPSIS Meeting Date 5/27/03 Initials ITEM Na Prepared by 1 Mayor's review 1 Council review 1 ARD I le-04 1 _4!e!_ 1 I I I I LA. `C I I I I Original Agenda Date: 5/27/03 1 CAS Number: 03-072 1 Agenda Item Title: Resolution to reimburse Capital Expenditures in connection with Arterial Street Projects. I Original Sponsor: Council Admin. X Timeline: Approve at May 27, 2003 or June 2, 2003 meeting. Sponsor's Summary: See attached Resolution and Staff Report Approve at May 27, or June 2, 2003 meeting. Finance Safety May 19, 2003 No recommendation Same as sponsor �4.`,. %1G :4% %lI V .�Y Action Attachments Staff report from Finance Proposed Resolution Finance Safety Committee minutes from May 19, 2003 To: Tukwila City Council From: Alan R Doerschel a a Date: May 22, 2003 Subject: New Resolution to clarify Bond Issue Elements I previously mentioned at the May 19, 2003 Finance Safety Committee meeting that we will need to revise the Bond Issue to reflect a different distribution. The original resolution (Resolution 1514) in February 2003 called for the Tukwila Village project completion to be funded by our upcoming Bond Issue. However, this amount ($3.9 million) is now considered taxable bonds because a private developer (Sabey) will be the ultimate benefactor. To save the City more than $500,000 in debt service cost over the life of the bonds, we need to do a supplanting effort. We did the same thing on the 6300 Building bonds purchase. We will use the bond funds for the Repair Overlay of South 144th project and Tukwila International Boulevard projects. The (cash) funds available for these projects will then be allocated for the Tukwila Village remaining property purchases. Timing is important to capture expenditures being made in April, May and June if approved by the Council. I will prepare a budget amendment to reflect both these changes and the final Ordinances for the entire Bond Issue. D n A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF TUKWILA, WASHINGTON, DECLARING ITS OFFICIAL INTENT TO REIMBURSE CAPITAL EXPENDITURES IN CONNECTION WITH ARTERIAL STREET PROJECTS FROM PROCEEDS OF A FUTURE BORROWING. WHEREAS, the City of Tukwila, Washington (the "City intends to make expenditures for the projects identified below, from funds that are available, but that are not (and are not reasonably expected to be) reserved, allocated on a long- basis, or otherwise set aside for those expenditures; and reasonably expects to be reimbursed for those expenditures from proceeds of bonds or other obligations "bonds issued to finance those expenditures; and WHEREAS, certain federal regulations (the "federal reimbursement regulations relating to the use of proceeds of tax exempt bonds to reimburse the issuer of the bonds for expenditures made before the issue date of the bonds require, among other things, that not later than 60 days after payment of the original expenditure the City (or any person designated by the City to do so on its behalf) declare a reasonable official intent to reimburse those expenditures from proceeds of bonds; NOW, THEREFORE, THE CITY COUNCIL OF THE CITY OF TUKWILA, WASHINGTON, HEREBY RESOLVES AS FOLLOWS: Section 1. Description of Projects for Which Expenditures are to be Made. The City intends to make (and /or, not more than 60 days before the date of this declaration, has made) expenditures, and reasonably expects to reimburse itself for those expenditures from proceeds of bonds, for the following projects: 1. Capital Overlay Projects This is a continuation of the City's desire to provide a viable arterial street network in Tukwila. 2. South 144m (42ND Avenue South to Military Road) This project is related to the program to upgrade the vehicle and pedestrian traffic around the Tukwila Village Project. 3. Tukwila International Boulevard This is a restatement of the project in Resolution No. 1514, dated February 3, 2003, Section 1.A., Tukwila Village. Section 2. Maximum Principal Amount of Obligations Expected to be Issued for the Projects. The City expects that the maximum principal amount of bonds that will be issued to finance these projects will be $4,000,000. Section 3. Declaration Reasonable. The City Council has reviewed its existing and reasonably foreseeable budgetary and financial circumstances and has determined that the City reasonably expects to reimburse itself for expenditures for the projects from proceeds of bonds because the City has no funds available that already are, or are reasonably expected to be, reserved, allocated on a long -term basis, or otherwise set aside by the City for those expenditures on the projects. Section 4. Limitations on Uses of Reimbursement Amounts. The City will not, within one year after the expected reimbursement, use amounts corresponding to proceeds received from bonds issued in the future to reimburse the City for previously paid expenditures for the project in any manner that results in those amounts being treated as replacement proceeds of any tax- exempt bonds, i.e., as a result of being deposited in a reserve fund, pledged fund, sinking fund or similar fund (other than a bona fide debt service fund) that is expected to be used to pay principal of or interest on tax exempt bonds. Nor will the City use those amounts in any manner that employs an abusive arbitrage device to avoid arbitrage restrictions. Section 5. Date of Declaration. This declaration of official intent shall be dated as of the date of adoption of this resolution. Section 6. Ratification and Confirmation. Any actions of the City or its officers prior to the date thereof and consistent with the terms of this resolution are ratified and confirmed. Section 7. Effective Date. This resolution shall be in full force and effect from and after its adoption and approval. PASSED BY THE CITY COUNCIL OF THE CITY OF TUKWILA, WASHINGTON, at a regular meeting thereof this day of 2003. ATTEST /AUTHENTICATED: Jane E. Cantu, CMC, City Clerk APPROVED AS TO FORM BY: Office of the City Attorney Filed with the City Clerk. Passed by the City Council: Resolution Number: Pam Carter, Council President Finance and Safety Committee May 19, 2003 Present: Joe Duffie, Chair; Jim Haggerton, Richard Simpson Rhonda Berry, Alan Doerschel, Lucy Lauterbach 1. V -Net Fiscal Agent Since last year Tukwila has been handling the finances of the Valley Narcotics Enforcement Team (V -Net), which is made up of officers from Tukwila, Auburn, Renton, Kent, the State Patrol, and King County. Tukwila is the Last jurisdiction to handle the finances. The other cities have done it for from two to four years each. Alan said he was happy to do it, and the City gets some payments for being the fiscal agent, as well. Recommend motion to continue as fiscal anent for V- Net to Regular Meeting. 2. General Fund Budget Changes 2003 There have been four unbudgeted projects this year: contract for Ball Janik, additional money for connectivity line to the pool, the GIS survey of north Tukwila for pipe locations, and the Waldron firm's search for a new city administrator. The changes add up to just over $300,000. The GIS survey will be paid for by putting off other surface water projects to be done later in the schedule. If ACC is added, it would go on top of these costs. Jim asked if the City could afford $50,000 for ACC. Alan said there are two ways of looking at it: on one hand, the city can't afford for money to disappear from the Planning Model. On the other hand, if it is something the city really wants, the money should be spent. The only caveat is that money spent today will not be available tomorrow. Alan is working on the bond for the bridge, Tuk Village, and Golf Course. He said he may need to move some bond funding to streets and elsewhere to get non -taxed bonds, which Tuk Village bonds would not be. Non -taxed bonds have lower rates than taxable bonds. Jim also asked about budget changes made during the year. Alan said he gathers all of those together in November, and the Council amends the budget to accommodate those amendments. Information. 3. Banking Services Contract Tukwila uses one local bank for checking, credit cards, and to hold our excess cash. Banks are anxious to be cities' bank, and they all compete to try to get a city's business. Once again, U.S. Bank has won the contract. Alan said his staff has enjoyed working with the bank, and they have a very good working relationship. The agreement will be for two years, with two one -year extensions. Recommend manor's signature on Agreement to COW. 4. Animal Control Interlocal At their last meeting, committee members had questions about the animal control services; how much they had been working in Tukwila recently, and what kinds of calls they answered here. No one had seen the trucks as much as they once had. The only information the city had was from the last invoice animal control submitted in January, 2003. They had given the monthly total hours worked in the city, and those hours were higher than the 12 hours assigned. That also means the City's bills were higher than anticipated. We have not been billed this year yet, as the County has been trying to negotiate the higher rate for services. After discussion, the committee agreed that they wanted more accountability than they have gotten in the past, and they will pay the $60/hour rate for 12 hours /week from July 1- December 31 this year. After those six months are up, the City will evaluate whether the additional service was worth the cost. Recommend interlocal agreement to COW. c_= `IAA l 4 Committee chair approval