Loading...
HomeMy WebLinkAboutFS 2013-02-20 Item 2B - Resolution/Ordinance - Local Improvemen District (LID) #33TO: City of Tukwila Jim Haggerton, Mayor INFORMATIONAL MEMORANDUM Mayor Haggerton Finance & Safety Committee FROM: Peggy McCarthy, Finance Director BY: Vicky Carlsen, Deputy Finance Director DATE: February 13, 2013 SUBJECT: Resolutions and Ordinance for Local Improvement District #33 ISSUE Consider for approval (1) a Resolution appointing a Hearing Examiner to conduct a public hearing on the final assessment roll, (2) a Resolution fixing the time and place for the public hearing on the final assessment roll, (3) a Resolution clarifying the interfund loan terms authorized in Resolution No. 1739, (4) an Ordinance amending Ordinance 322 to allow for appeal to the Council after the assessment roll hearing. An "LID #33: Calendar of Remaining Events" is also included for Council information. BACKGROUND On November 16, 2009, the Council adopted Ordinance No. 2260 ordering improvements for the Southcenter area by establishing the formation of Local Improvement District (LID) #33 Tukwila Urban Center Access (Klickitat) Project. On May 5, 2011, the Council adopted Resolution No. 1739 authorizing interim financing of the project through internal loans among the Arterial Street Fund, the General Fund and other funds. A few steps remain to complete the LID process, some of which include establishing and updating legislation. To better understand the interfund loan resolution, the accounting and financing structure for the LID project is discussed in the following paragraph. The LID Project fund, also known as the Klickitat Project #98410419 (the Project), is a subset of the Arterial Street Fund. All Project revenue and expenditure transactions and balances reside in the Arterial Street Fund and are accounted for within that fund as a unique project using the Project Accounting system. Since Project inception, the unfunded portion of the Project, the portion that will be paid for through the LID assessment, has been financed by the Arterial Street Fund reserves and through General Fund contributions. In 2012, consideration was given to establishing a loan to the Arterial Street Fund from the internal service Equipment Rental and Replacement Fund 501, in an amount not to exceed $2,500,000, to assist cash flow needs. This interfund loan would be in lieu of additional General Fund contributions. DISCUSSION The final steps in completing the LID process are outlined on the attached "LID #33: Calendar of Remaining Events ". The next steps requiring Council action are as follows: 13 14 INFORMATIONAL MEMO Page 2 1. Resolution appointing Hearing Examiner: Pursuant to RCW 35.44.070, the City Council may designate an officer to conduct a hearing on the assessment roll. This Resolution appoints Gary McLean as the City's Hearing Examiner for the assessment roll hearing for LID #33. 2. Resolution fixing the time and place for the public hearing on the final assessment roll: Pursuant to RCW 35.44.070, this Resolution sets March 27, 2013 as the hearing date on the assessment roll for LID #33. The hearing will be conducted at the Tukwila Community Center Meeting Room B and will begin at 9:00 am. The hearing will continue until all evidence has been heard. Notification of the hearing will be mailed to all property owners within the LID. 3. Resolution clarifying loans authorized in Resolution No. 1739: On May 2, 2011, the City Council adopted Resolution No. 1739 authorizing the transfer of funds for the purpose of making a loan or loans from the General Fund and /or other funds to the Arterial Street Fund for purposes of covering authorized expenditures related to the LID project. The Resolution revises and updates the terms of the interfund loan with the following information: a. Revises the maximum loan amount not to exceed from $12 million to $9.5 million for the loan from the Arterial Street Fund to the LID Project Fund and to $2.5 million for the loan from the Equipment Rental and Replacement Fund to the Arterial street Fund. b. Adds in language that specifies that the loan shall be repaid from LID Bond proceeds no later than December 31, 2014. c. Sets the interest rate for the loan at 1.80% per annum consistent with Resolution No. 1739 guidelines. d. Extends the financing period to the date the LID bond proceeds are received. 4. Ordinance amending Ordinance 322 allowing for appeal to the Council after the assessment roll hearing: Pursuant to RCW 35.43 and 35.44, Ordinance 322 is amended to allow appeal to the Council after the assessment roll hearing. RECOMMENDATION The Committee is being asked to forward these 4 items to the March 4, 2012 Regular Meeting Consent Agenda. ATTACHMENTS: 1. Draft Resolution appointing Hearing Examiner to conduct the final assessment roll 2. Draft Resolution fixing time and place for public hearing on the final assessment roll 3. Draft Resolution clarifying terms of interfund loan authorized in Resolution No. 1739. 4. Copy of Resolution No. 1739 5. Draft ordinance amending Ordinance 322 6. Tukwila Municipal Code section applicable to the Code change referenced in the draft Ordinance. 7. LID #33 Calendar of Remaining Events W:11Users\Vicky\LIDMInfo Memo - LID Hearing Examiner hearing date interfund Loan 2 -13 -13 Final.docx DRAFT A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF TUKWILA, WASHINGTON, APPOINTING A HEARING EXAMINER PURSUANT TO RCW 35.44.070 TO CONDUCT A HEARING ON THE FINAL ASSESSMENT ROLL FOR KLICKITAT LOCAL IMPROVEMENT DISTRICT NO. 33. WHEREAS, on November 16, 2009, the City Council passed Ordinance No. 2260 creating the Klickitat Local Improvement District (LID) No. 33; and WHEREAS, pursuant to RCW 35.44.070 the City Council may designate an officer to conduct a hearing on the assessment roll; and WHEREAS, the City Council wishes to designate Gary McLean as Hearing Examiner to preside over the LID assessment roll hearing; NOW, THEREFORE, THE CITY COUNCIL OF THE CITY OF TUKWILA, WASHINGTON, HEREBY RESOLVES AS FOLLOWS: Appointment of Hearing Examiner. The City Council of the City of Tukwila, Washington, does hereby appoint Gary McLean to act as the City's Hearing Examiner for the assessment roll hearing for LID No. 33. PASSED BY THE CITY COUNCIL OF THE CITY OF TUKWILA, WASHINGTON, at a Regular Meeting thereof this day of , 2013. ATTEST /AUTHENTICATED: Christy O'Flaherty, MMC, City Clerk Kathy Hougardy, Council President APPROVED AS TO FORM BY: Filed with the City Clerk: Passed by the City Council: Resolution Number: Shelley M. Kerslake, City Attorney W: \Word Processing \Resolutions \LID 33- Appoint Assessment Roll Hearing Examiner 2 -5 -13 SK:bjs Page 1 of 1 15 16 AFT A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF TUKWILA, WASHINGTON, FIXING THE TIME FOR A HEARING ON THE FINAL ASSESSMENT ROLL FOR KLICKITAT LOCAL IMPROVEMENT DISTRICT NO. 33. WHEREAS, by Ordinance No. 2260, the City Council of the City of Tukwila established Klickitat Local Improvement District No. 33 for construction of access improvements to the Southcenter area; and WHEREAS, construction of the improvements has now been completed; and WHEREAS, the assessment roll for the local improvements has been prepared and filed with the office of the City Clerk; NOW, THEREFORE, THE CITY COUNCIL OF THE CITY OF TUKWILA, WASHINGTON, HEREBY RESOLVES AS FOLLOWS: Section 1. Hearing Date. The City Council of the City of Tukwila, Washington, hereby sets March 27, 2013 as the hearing date on the assessment roll for Local Improvement District No. 33 now on file at the office of the City Clerk. The hearing shall be held before the appointed Hearing Examiner beginning at 9:00 AM at the Tukwila Community Center, 12424 42nd Ave. S., Tukwila, Washington. Section 2. Notice of Hearing. The City Clerk of the City of Tukwila, Washington shall prepare a notice of the hearing as provided in RCW 35.44.080 and shall mail and publish said notice of hearing as provided in RCW 35.44.090. PASSED BY THE CITY COUNCIL OF THE CITY OF TUKWILA, WASHINGTON, at a Regular Meeting thereof this day of , 2013. ATTEST /AUTHENTICATED: Christy O'Flaherty, MMC, City Clerk Kathy Hougardy, Council President APPROVED AS TO FORM BY: Filed with the City Clerk: Passed by the City Council: Resolution Number: Shelley M. Kerslake, City Attorney W: \Word Processing \Resolutions \LID 33- Assessment roll hearing date 2 -5 -13 SK:bjs Page 1 of 1 17 18 DR FT A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF TUKWILA, WASHINGTON, PROVIDING FOR CLARIFICATION OF THE TERMS OF AN INTERFUND LOAN TO FUND THE TUKWILA URBAN CENTER ACCESS PROJECT IN LOCAL IMPROVEMENT DISTRICT NO. 33, AND OTHER MATTERS PROPERLY RELATED THERETO. WHEREAS, the City Council, by Ordinance No. 2260 passed on November 16, 2009, formed Local Improvement District No. 33 ( "LID No. 33 "); ordered the City to undertake the Urban Center Access Project (Project 98410419) (the "Project "); established the Local Improvement Fund, District No. 33 (the "LID Project Fund "), to pay the costs of the Project; and authorized the use of interfund loans or other short- term borrowings to pay the costs of the Project on an interim basis pending the receipt of the revenues from the issuance of Local Improvement District Bonds (the "LID Bonds "), grants and other resources; and WHEREAS, the City Council, by Resolution No. 1739 adopted on May 2, 2011, directed that up to $12,000,000 of funds be loaned on a temporary basis at a market rate for the purpose of paying costs of the Project; and WHEREAS, the Project is nearing completion and it is now expected that the LID Bonds will be issued in mid -2013, and it is now necessary to clarify and restate the terms of that interfund loan; NOW, THEREFORE, THE CITY COUNCIL OF THE CITY OF TUKWILA, WASHINGTON, HEREBY RESOLVES AS FOLLOWS: Section 1. In order to meet the continuing cash flow needs of the Project, the City Council now finds that the terms of the previously- authorized interfund loan must be revised and updated as follows: 1. The loan amount authorized to be loaned from the Arterial Street Fund to the LID Project Fund is revised to a maximum amount not to exceed $9,500,000. W: \Word Processing \Resolutions \LID 33- Interfund Loan clarification 2 -12 -13 PM:bjs Page 1 of 2 19 2. The loan amount authorized to be loaned from the General Fund or other funds to the Arterial Street Fund is revised to a maximum amount not to exceed $2,500,000. The internal service Equipment Rental and Replacement Fund 501 shall serve as the lending fund for this loan. 3. Loan advances to meet Project cash flow needs shall be authorized until the loans are repaid from the LID Bond proceeds or other resources. 4. The loans shall be repaid from the LID Bond proceeds or other resources no later than December 31, 2014. 5. Interest shall accrue, beginning on the date of each expenditure (each of which shall be deemed a loan draw) until repaid, on the principal amount of each loan draw outstanding at the rate of 1.80 percent per annum, computed on the basis of a 360 -day year for the actual number of days the principal amount of the loan draw is outstanding. Such rate is determined to be a market rate, after receiving quotes from three banks accustomed to making similar loans to municipal government entities, and approximating the average rate of interest that would likely have been charged had the City borrowed through those sources to provide interim funding for the Project. Section 2. The Finance Director shall keep a record of the principal amount so borrowed, the amount of interest accruing and the repayment of all such principal and interest. Section 3. The Finance Director and all other appropriate officials of the City are authorized to take such action as may be necessary to carry out this resolution including, without limitation, taking such action as may be necessary to amend the budgets for the affected years to reflect the transfers and interfund loans described in this resolution, and including bringing forth budget amendments or reconciliations to Council, if Council approval in addition to this resolution is determined to be necessary under state law. All actions previously taken and consistent with the provisions of this resolution are ratified and confirmed. PASSED BY THE CITY COUNCIL OF THE CITY OF TUKWILA, WASHINGTON, at a Regular Meeting thereof this day of , 2013. ATTEST /AUTHENTICATED: Christy O'Flaherty, MMC, City Clerk Kathy Hougardy, Council President APPROVED AS TO FORM BY: Filed with the City Clerk: Passed by the City Council: Resolution Number: Shelley M. Kerslake, City Attorney W: \Word Processing \Resolutions \LID 33- Interfund Loan clarification 2 -12 -13 PM:bjs 20 Page 2 of 2 City of Tukwila Washington Resolution No. / 17 3 9 A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF TUKWILA, WASHINGTON, AUTHORIZING THE TRANSFER OF FUNDS FOR THE PURPOSE OF MAKING A LOAN OR LOANS FROM THE GENERAL FUND AND /OR OTHER FUNDS TO THE ARTERIAL STREET FUND FOR UP TO A 15 -MONTH PERIOD OF TIME. WHEREAS, there may be insufficient funds available from time to time during the period April 2011 to June 2012 in the Arterial Street Fund to cover authorized expenditures while the City waits for reimbursement of federal, state and local grant monies that have been approved for allocation to the City for which contracts have been executed; and WHEREAS, the General Fund and /or other funds have sufficient funds from which to transfer funds in an amount not to exceed twelve million dollars ($12,000,000) for the purpose of making loans to cover authorized expenditures from the Arterial Street Fund; and WHEREAS, in the event a loan is made from the General Fund and /or other funds to the Arterial Street Fund as provided above, the loans shall be at the current market rate of interest for comparable investments of similar maturity; and WHEREAS, the City Council intends to replace any funds loaned to the Arterial Street Fund with long term Local Improvement District bonds upon completion of the Tukwila Urban Center Access Project (Project No. 98410419), also known as the Klickitat project, upon completion of construction and completion of the final assessment roll; NOW, THEREFORE, THE CITY COUNCIL OF THE CITY OF TUKWILA, WASHINGTON, HEREBY RESOLVES AS FOLLOWS: Section 1. Purpose. Authorization is hereby given during the time period April 2011 to June 2012 for the transfer of funds to the Arterial Street Fund, when there are insufficient funds available therein to cover authorized expenditures for which contracts have been executed, in an amount not to exceed twelve million dollars ($12,000,000) from the General Fund and /or other funds for the purpose of making a loan at the current market rate of interest. W: \Word Processing \Resolutions \Klickitat Interfund Loan - Authorization SH:bjs — 4/12/11 Page 1 of 2 21 22 Section 2. Implementation. The Finance Director is hereby authorized to implement such administrative procedures as may be necessary to carry out the directions of this legislation. PASSED BY THE CITY COUNCIL 1F THE CITY OF TUKWILA, WASHINGTON, at Regular Meeting this of m Cxc� a Regu g o� day ATTEST /AUTHENTICATED: a4pChristy O'Fl CMC, City Cler APPROVED AS TO Shelley M. Kersl ttorney W: \Word Processing \Resolutions \Klickitat Interfund Loan - Authorization SH:bjs — 4/12/11 , 2011. Ilan Ekberg, Council Presi Filed with the City Clerk: Passed by the City Council: Resolution Number: Page 2 of 2 RFT AN ORDINANCE OF THE CITY COUNCIL OF THE CITY OF TUKWILA, WASHINGTON, AMENDING ORDINANCE NO. 322 TO ADOPT REGULATIONS RELATING TO ASSESSMENT ROLL HEARINGS AND APPEAL, TO BE CODIFIED AT TUKWILA MUNICIPAL CODE SECTION 13.04.095; PROVIDING FOR SEVERABILITY; AND ESTABLISHING AN EFFECTIVE DATE. WHEREAS, RCW 35.44.070 requires that recommendations of the Hearing Examiner on a local improvement district assessment roll be appealable, by property owners who protested his or her assessment, to the City Council; and WHEREAS, Tukwila Municipal Code Chapter 13.04 did not contain a process for administering such appeals; NOW THEREFORE, THE CITY COUNCIL OF THE CITY OF TUKWILA, WASHINGTON, HEREBY ORDAINS AS FOLLOWS: Section 1. Ordinance No. 322 Amended. Ordinance No. 322 is hereby amended to adopt new regulations to be codified at Tukwila Municipal Code Section 13.04.095, "Assessment Roll — Hearing and Appeal," as follows: Section 13.04.095 Assessment Roll — Hearing and Appeal At the time fixed for hearing on the assessment roll and at the times to which such hearing may be continued, the City's Hearing Examiner shall consider all objections timely filed with the City Clerk pursuant to RCW 35.44.080, following which the Hearing Examiner shall make recommendations that the City Council correct, revise, raise, lower, change or modify the roll or any part thereof, or set aside the roll and order the assessment to be made de novo, or that the Council adopt or correct the roll or take other action on the roll. The City Council shall adopt or reject the recommendation of the Hearing Examiner at a public meeting; provided, that any person who shall have challenged his or her assessment before the Examiner, may appeal the recommendation of the Hearing Examiner to the City Council by filing written notice of such appeal with the City Clerk within 10 calendar days of the date of mailing of the Hearing Examiner's recommendation. W: Word Processing \Ordinances \LID 33- Hearing and Appeal 2 -13 -13 SK:bjs Page 1 of 2 23 The appeal shall be upon the record made before the Hearing Examiner, based on a preponderance of evidence standard and shall be considered by the Council at a public meeting in accordance with the City Council's rules of procedure. Confirmation of the roll shall be by ordinance. Section 2. Corrections by City Clerk or Code Reviser. Upon approval of the City Attorney, the City Clerk and the code reviser are authorized to make necessary corrections to this ordinance, including the correction of clerical errors; references to other local, state or federal laws, codes, rules, or regulations; or ordinance numbering and section /subsection numbering. Section 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 , 2013. ATTEST /AUTHENTICATED: Christy O'Flaherty, MMC, City Clerk APPROVED AS TO FORM BY: Office of the City Attorney Jim Haggerton, Mayor Filed with the City Clerk: Passed by the City Council: Published: Effective Date: Ordinance Number: W: Word Processing \Ordinances \LID 33- Hearing and Appeal 2 -13 -13 SK:bjs 24 Page 2 of 2 TITLE 13 — PUBLIC IMPROVEMENTS 13.04.070 LID Property Inclusions Unless otherwise provided in the ordinance ordering the improvement, the improvement district shall include all the property between the termini of the improvement abutting upon, adjacent, vicinal, or proximate to the street, avenue, land, alley, boulevard, park drive, parkway, public place or square proposed to be improved to a distance of 90 feet back from the marginal lines thereof or to the centerline of the blocks facing or abutting thereon, whichever is greater (in the case of unplatted property, the distance back shall be the same as in the platted property immediately adjacent thereto); provided, that if the local improvement is such that the special benefits resulting therefrom extent beyond the boundaries as above set forth, the Council may create an enlarged district to include as nearly as practicable all the property to be specially benefited by the improvement; the petition or resolution for an enlarged district and all proceedings pursuant thereto shall conform as nearly as is practicable to the provisions relating to local improvement districts generally, except that the petition or resolution must describe it as an enlarged district and state what proportion of the amount to be charged to the property specially benefited shall be charged to the property lying be- tween the termini of the proposed improvement and extending back from the marginal lines thereof to the middle of the block (or 90 feet back) on each side thereof, and what proportion thereof to the remainder of the enlarged district; provided fur- ther, that whenever the nature of the improvement is such that the special benefits conferred on the property are not fairly reflected by the use of the aforesaid termini and zone method, the ordinance ordering the improvement may provide that the assessment shall be made against the property of the district in accordance with the special benefits it will derive from the improvement without regard to the zone and termini method. (Ord. 322 §3(part), 1961) 13.04.080 Determination of Authority All local improvements, funds for the making of which are derived in whole or in part from assessments upon property specially benefited, shall be made either by the City itself or by contract upon competitive bids in the manner provided by law. The City Council shall determine whether such local improve- ment shall be done by contract or by the City itself. (Ord. 322 §4, 1961) 13.04.090 Cost The cost and expense of any such improvement, or such portion thereof as the City Council may determine to be as- sessed, shall be distributed and assessed against all the prop- erty included in such local improvement district, in accordance with the special benefits conferred thereon, and in the manner provided by law. (Ord. 322 §5, 1961) 13.04.100 Bonds - Payment of Cost The City Council may provide by ordinance for the pay- ment of the whole or any portion of the cost and expense of any local improvement by bonds of the improvement district, but no bonds shall be issued in excess of the cost and ex- pense of the improvement, nor shall they be issued prior to 20 days after the 30 days allowed for the payment of assess- ments without penalty or interest. (Ord. 322 §6, 1961) 13.04.110 Bonds - Issuance and Sale A. Local improvement bonds may be issued to the con- tractor or sold by the officers authorized by the ordinance di- recting their issue to do so, in the manner prescribed therein, and at not less than par and accrued interest. Any portion of the bonds of any issue remaining unsold may be issued to the contractor constructing the improvement in payment thereof. B. The proceeds of all sales of bonds shall be applied in payment of the cost and expense of the improvement. (Ord. 322 §7, 1961) 13.04.120 Warrants - Payment of Cost The City Council may provide by ordinance for the is- suance of warrants in payment of the cost and expense of any local improvement, payable out of the local improvement dis- trict fund. The warrants shall bear interest at the rate of not to exceed 8% per year and shall be redeemed either in cash or by local improvement bonds for the same improvement autho- rized by ordinance. (Ord. 322 §8, 1961) - New TMC section 13.04.095 Assessment Roll — Hearing and Appeal to be inserted here Produced by the City of Tukwila, City Clerk's Office Page 13-3 25 N W LID 33: Calendar of Remaining Events ** Responsible Party: Council Action rr Council Action ' Clerk /PW/ Finance Clerk Clerk /PW/ Finance Council Action Clerk n/a n/a Clerk / Finance Clerk n/a Council ' Action Finance February 12 February 20 March 7 March 11 March 27 April 15 April 18 April 23 May 3 May 9 May 16 June 10 June 18 July 5 Committee Committee F &S Regular Committee Meeting / Transportation F &S Event Date: March 4 ** February 18 Regular July 1 Regular Regular Approve: Approve Approve ordinance Approve: 1. Project close - out Resolutions: 1_ Appointing confirming assessment roll. 1. Ordinance to sell Bonds Hearing Examiner In Quasi - Judicial capacity: 2. Setting date, time and location of hearing 1. Hear objections of property owners. Council Actions 3. Updating and clarifying interfund loan terms 2. Rule on objections or defer to another meeting. Approve Ordinance: 4. Allowing appeal to Council after assessment roll hearing. 1. File 1. Publish 1 LID 1. Publish 1. Ordinance 1. Appeal 1. Publish 1. Publish 1. Prepay- 1 Sell Staff Actions assessment roll with City Clerk. 2 Publish notice for hearing date (1st publication) 3 Mail notice of hearing to property owners. notice for hearing date (2nd publication) 15 days before hearing. hearing, 9:00 am, TCC ordinance confirming assessments confirming assessments becomes effective period ends 10 days after Ordinance effective date. notice of final assessment roll (1st publication) notice of final assessment roll (2nd publication) 2 Mail notice to all property owners that roll is filed for collection. ment period ends 30 days after the 1st notice of collection is published. Bonds 15 days before hearing. ** Note: Some dates are tentative and dependent on the timing of completion of certain events.