HomeMy WebLinkAboutReg 2010-02-16 Item 6E - Ordinance - Pledge City's Full Faith and Credit Toward Payment of Its Share of Debt Service on Refunding Bonds (ValleyCom Center Development Authority)Fund Source:
Comments:
MTG. DATE
2/8/10
2/16/10
CAS NUMBER: 10-015
COUNCIL AGENDA SYNOPSIS
Initials
Meeting Date Prepared b y 1 Mayor .review I Counc review
02/08/10 SH 1 I A'
02/16/10 SH I 56 l (i )J.,
I
ITEM INFORMATION
1 ORIGINAL AGENDA DATE: FEBRUARY 8, 2010
MTG. DATE RECORD OF COUNCIL ACTION
2/8/10 Forward to the Next Regular Meeting
2/16/10 1
ATTACHMENTS
Informational Memorandum dated 1/28/10
Ordinance in Draft Form
Projected Summary of Refunding Results
Minutes from the Finance and Safety Committee meeting of 2/2/10
Ordinance in Final Form
ITEM No.
6
AGENDA ITEM TITLE An ordinance pledging the City's full faith and credit toward the payment of its share
of debt service on refunding bonds to be issued by the Valley Communications Center
Development Authority.
CATEGORY Discussion Motion Resolution
Mtg Date 2/8/10 Mtg Date Mtg Date Mtg Date 2/16/10 Mtg Date Mtg Date Mtg Date
Ordinance Bid Award Public Hearing Other
SPONSOR Council 111 Mayor n Adm Svcs DCD Finance Fire Legal n P&R Police PW
SPONSOR'S The Valley Communications (ValleyCom) Board of Directors (Admin Board) has authoirzed
SUMMARY the refunding of its series 2000 bonds. As a member City of ValleyCom, the City Council
must approve the refunding by adoption of an ordinance prior to the bond sale.
The Council is being asked to approve the ordinance providing for repayment of the new
refunding bonds, and authorize the Mayor to execute a continuing disclosure agreement.
REVIEWED BY COW Mtg. CA &P Cmte F &S Cmte Transportation Cmte
n Utilities Cmte Arts Comm. n Parks Comm. Planning Comm.
DATE: 2/2/10
RECOMMENDATIONS:
SPONSOR /ADMIN. Finance Department
CoMMIT•rEE unanimous approval; Forward to Committee of the Whole
COST. IMPACT FUND .SOURCE
EXPENDITURE REQUIRED AMOUNT BUDGETED APPROPRIATION REQUIRED
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Ci
of Tukwila
Washington
Ordinance No.
AN ORDINANCE OF THE CITY COUNCIL OF THE CITY OF TUKWILA,
WASHINGTON, PLEDGING THE CITY'S FULL FAITH AND CREDIT TOWARD
THE PAYMENT OF ITS SHARE OF DEBT SERVICE ON REFUNDING BONDS TO
BE ISSUED BY THE VALLEY COMMUNICATIONS CENTER DEVELOPMENT
AUTHORITY AND APPROVING CERTAIN MATTERS RELATED THERETO;
PROVIDING FOR SEVERABILITY; AND ESTABLISHING AN EFFECTIVE DATE.
WHEREAS, pursuant to Ordinance No. 1912, adopted by the City of Tukwila (the "City")
on April 3, 2000, and Chapter 39.34 RCW, the Interlocal Cooperation Act, the City entered into
the Valley Communications Center Interlocal Agreement effective April 17, 2000 (the Interlocal
Agreement with the City of Federal Way, the City of Renton, the City of Auburn, and the City
of Kent, Washington (together, the "Member Cities to reorganize a governmental
administrative agency known as the Valley Communications Center "ValleyCorn and
WHEREAS, the purpose of ValleyCom is to provide improved police, fire and medical aid
service communications within the boundaries of the existing, established consolidated service
area at a minimum cost to the Member Cities, together with such other governmental agencies
that have contracted with ValleyCom for communication services; and
WHEREAS, in order to address increased growth and to provide necessary services for the
Member Cities and other governmental agencies that contract with ValleyCom for
communication services, ValIeyCom constructed a new dispatch facility known as the Valley
Communications Center (the "Facility"); and
WHEREAS, financing for the construction, equipping and improvement of the Facility was
provided by bonds issued by the Valley Communications Center Development Authority (the
"Authority"), a public development authority chartered by the City of Kent, pursuant to RCW
35.21.730 through 35.21.755; and
WHEREAS, pursuant to the Interlocal Agreement, each Member City has agreed to
contribute to the financing of the costs of the Facility, each Member City paying 20% of the total
cost of development, less contributions from grants, other agencies or other sources; and
WHEREAS, the Authority issued its Valley Communications Center Development
Authority Bonds, 2000 (Valley Communications Center Project in King County, Washington)
(the "2000 Bonds dated September 15, 2000, in the original aggregate principal amount of
$12,758,000; and
WHEREAS, it appears that the 2000 Bonds may now be refunded at lower interest rates
through the issuance of refunding bonds of the Authority, thereby yielding savings to the
Authority and the Member Cities;
NOW THEREFORE, THE CITY COUNCIL OF THE CITY OF TUKWILA,
WASHINGTON, HEREBY ORDAINS AS FOLLOWS:
Section 1. City Contributions to Bonds. Pursuant to the terms of the Interlocal Agreement,
the City hereby irrevocably commits to pay its share, which shall be equal to 20 of the debt
service on bonds (the "Bonds issued by the Authority for the purpose of defeasing and
refunding all or a portion of the 2000 Bonds. The City recognizes that it is not obligated to pay
the share of any other Member City; the City's obligation shall be limited to its 20% allocable
share of debt service on such Bonds; all such payments shall be made by the City without
regard to the payment or lack thereof by any other jurisdiction; and the City shall be obligated
to budget for and pay its 20% allocable share. All payments with respect to the Bonds shall be
made to ValleyCom in its capacity as administrator and servicer of the Bonds to be issued by
the Authority. The City's obligation to pay its 20% allocable share shall be an irrevocable full
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faith and credit obligation of the City, payable from property taxes levied within the
constitutional and statutory authority provided without a vote of the electors of the City on all
of the taxable property within the City and other sources of revenues available therefor. The
City hereby obligates itself and commits to budget for and pay its 20% allocable share and to set
aside and include in its calculation of outstanding non -voted general obligation indebtedness an
amount equal to the principal component of its 20% allocable share for so long as any Bonds
remain outstanding.
Section 2. Compliance with Continuing Disclosure Requirements and Official
Statement. To the extent necessary to meet the conditions of paragraph (d)(2) of United States
Securities and Exchange Commission Rule 15c2 -12 (the "Rule the Mayor is hereby authorized
to execute and deliver a continuing disclosure agreement or certificate in order to assist the
underwriter for the Bonds in complying with the Rule. The Mayor is further authorized to ratify
and approve the information pertaining to the City and contained in the preliminary and final
official statements delivered in connection with the Bonds for purposes of the Rule.
Section 3. Allocation for Purposes of Bank Qualification. For purposes of
Section 265(b)(3)(C)(iii) of the Internal Revenue Code of 1986, as amended (the "Code the
City hereby agrees that the amount of each issue of obligations of the Authority shall be
allocated in equal shares among each of the Member Cities.
Section 4. Tax Covenant. The City hereby agrees that it shall not:
1. Make any use of the proceeds from the sale of Bonds or any other money or
obligations of the Authority or the Member Cities that may be deemed to be proceeds of the
Bonds pursuant to Section 148(a) of the Code that will cause the Bonds to be "arbitrage bonds"
within the meaning of said Section and said regulations, or
2. Act or fail to act in a manner that will cause the Bonds to be considered obligations
not described in Section 103(a) of the Code.
Section 5. General Authorization; Prior Acts.
A. The Mayor and Finance Director of the City and each of the other appropriate officers,
agents and representatives of the City are each hereby authorized and directed to take such
steps, to do such other acts and things, and to execute such letters, certificates, agreements,
papers, financing statements, assignments or instruments as in their judgment may be
necessary, appropriate or desirable to carry out the terms and provisions of, and complete the
transactions contemplated by, this ordinance.
B. All acts taken pursuant to the authority of this ordinance but prior to its effective date
are hereby ratified and confirmed.
Section 6. 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 7. 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 there of this day of 2010.
ATTEST/ AUTHENTICATED:
Christy O'Flaherty, CMC, City Clerk
APPROVED AS TO FORM BY:
Office of the City Attorney
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Jim Haggerton, Mayor
Filed with the City Clerk:
Passed by the City Council:
Published:
Effective Date:
Ordinance Number:
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