HomeMy WebLinkAboutFS 2015-03-03 COMPLETE AGENDA PACKETCity of Tukwila
Finance and Safety
Committee
O Kathy Hougardy, Chair
O Joe Duffie
O De'Sean Quinn
AGENDA
Distribution:
Recommended Action
K. Hougardy
P. McCarthy
J. Duffie
C. C'Flaherty
D. Quinn
R. Turpin
K. Kruller
L. Humphrey
D. Robertson
B. Miles
Mayor Haggerton
V. Carlsen
D. Cline
streets.
TUESDAY, MARCH 3, 2015 — 5:30 PM
HAZELNUT CONFERENCE ROOM
(formerly known as CR #3) at east entrance of City Hall
Item
Recommended Action
Page
1. PRESENTATION(S)
2. BUSINESS AGENDA
a. An ordinance providing for the issuance of $6,250,000
a. Forward to 3/9 C.O.W.
Pg.1
Limited Tax General Obligation (LTGO) Bonds for arterial
and 3/16 Regular Mtg.
streets.
Peggy McCarthy, Finance Director
b. Authorization to spend Lodging Tax Funds for street
b. Forward to 3/9 C.O.W.
Pg.29
pole banners.
and 3/16 Regular Mtg.
Brandon Miles, Economic Development Liaison
c. An ordinance amending Ordinance Nos. 2464 and 2465
c. Forward to 3/9 C.O.W.
Pg.31
to conform debt service payment dates.
and 3/16 Regular Mtg.
Peggy McCarthy, Finance Director
d. An ordinance updating Tukwila Municipal Code Chapter
d. Forward to 3/9 C.O.W.
Pg.41
3.32 regarding unbudgeted equipment or fixed assets.
and 3/16 Regular Mtg.
Vicky Cansen, Deputy Finance Director
e. An Interlocal Agreement extending animal control
e. Forward to 3/9 C.O.W.
Pg.53
services.
and 3/16 Regular Mtg.
Peggy McCarthy, Finance Director
3. ANNOUNCEMENTS
4. MISCELLANEOUS
Next Scheduled Meeting: Tuesday, March 17, 2015
SThe City of Tukwila strives to accommodate individuals with disabilities.
Please contact the City Clerk's Office at 206 - 433 -1800 ( TukwilaCityClerk (a)TukwilaWA.gov) for assistance.
City of Tukwila
Jim Haggerton, Mayor
TO: Mayor Haggerton
Finance and Safety Committee
FROM: Peggy McCarthy, Finance Director
DATE: February 25, 2015
SUBJECT: Approve Ordinance for 2015 LTGO Bond Issue
ISSUE
Approve an ordinance authorizing the issuance of up to $6.25 million in limited tax general
obligation bonds for the Boeing Access Road Bridge retrofit project and the Interurban Avenue
Improvement project.
BACKGROUND
The 2015 -2020 CIP shows the City's share of project costs for these two projects as $2.5 million
and $3.8 million and the anticipated bonding at $2.5 million and $3.1 million respectively (CIP
pages 11 and 14) for a total budgeted cost of $6.3 million (the City's share) and total anticipated
bonding of $5.6 million. Annual debt service for this bond issue has been budgeted at $448
thousand (CIP page XXVI).
FINANCIAL IMPACT
The bond issue is projected to yield $6 million in proceeds for project funding and cost
reimbursement with the remaining $250,000 available to cover costs of issuance and any effects
of a discount bid (if the lowest interest cost bid contains a discount bond structure). Annual debt
service is currently estimated at $420 thousand which is less than the budgeted $448 thousand.
DISCUSSION
The bond issue is considered financially prudent as it will fund the majority of the City's share of
the project costs and the annual debt service is currently expected to be less than the amount
reflected in the 2015 -16 biennial budget and the 2015 -2020 Financial Planning Model.
RECOMMENDATION
Council is being asked to approve the ordinance authorizing issuance of up to $6.25 million in
limited general obligation bonds and to consider this item at the March 9, 2015 Committee of the
Whole Council Meeting and the March 16, 2015 Regular Council Meeting.
ATTACHMENTS:
Draft bond ordinance.
CIP pages XXVI, 11 and 14.
AN ORDINANCE OF THE CITY COUNCIL OF THE CITY OF
TUKWILA, WASHINGTON, RELATING TO CONTRACTING
INDEBTEDNESS; PROVIDING FOR THE ISSUANCE, SALE AND
DELIVERY OF NOT TO EXCEED $6,250,000 AGGREGATE
PRINCIPAL AMOUNT OF LIMITED TAX GENERAL OBLIGATION
BONDS TO PROVIDE FUNDS TO PAY OR REIMBURSE THE
CITY FOR THE COST OF ROAD CONSTRUCTION AND
IMPROVEMENT PROJECTS AND TO PAY THE COSTS OF
ISSUANCE AND SALE OF THE BONDS; FIXING OR SETTING
PARAMETERS WITH RESPECT TO CERTAIN TERMS AND
COVENANTS OF THE .BONDS; APPOINTING THE CITY'S
DESIGNATED REPRESENTATIVE TO APPROVE THE FINAL
TERMS OF THE SALE OF THE BONDS; AND PROVIDING FOR
OTHER RELATED MATTERS; PROVIDING FOR SEVERABILITY;
AND ESTABLISHING AN EFFECTIVE DATE.
NOW, THEREFORE, THE CITY COUNCIL OF THE CITY OF TUKWILA,
WASHINGTON, HEREBY ORDAINS AS FOLLOWS:
Section 1. Definitions. As used in this ordinance, the following capitalized terms
shall have the following meanings:
(a) "Authorized Denomination" means $5,000 or any integral multiple thereof
within a maturity of a Series.
(b) "Beneficial Owner" means, with respect to a Bond, the owner of any beneficial
interest in that Bond.
(c) "Bond" means each bond issued pursuant to and for the purposes provided in
this ordinance.
(d) "Bond Account" means the Limited Tax General Obligation Bond Account,
2015, of the City created for the payment of the principal of and interest on the Bonds.
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(e) "Bond Counsel" means the firm of Foster Pepper PLLC, its successor, or any
other attorney or firm of attorneys selected by the City with a nationally recognized
standing as bond counsel in the field of municipal finance.
(f) "Bond Purchase Agreement" means an offer to purchase a Series of the
Bonds, setting forth certain terms and conditions of the issuance, sale and delivery of
those Bonds, which offer is authorized to be accepted by the Designated
Representative on behalf of the City, if consistent with this ordinance. In the case of a
competitive sale, the official notice of sale, the Purchaser's bid and the award by the
City shall constitute the Bond Purchase Agreement for purposes of this ordinance.
(g) "Bond Register" means the books or records maintained by the Bond Registrar
for the purpose of identifying ownership of each Bond.
(h) "Bond Registrar" means the Fiscal Agent, or any successor bond registrar
selected by the City.
(i) "City" means the City of Tukwila, Washington, a municipal corporation duly
organized and existing under the laws of the State.
0) "City Council" means the legislative authority of the City, as duly and regularly
constituted from time to time.
(k) "Code" means the United States Internal Revenue Code of 1986, as amended,
and applicable rules and regulations promulgated thereunder.
(1) "DTC" means The Depository Trust Company, New York, New York, or its
nominee.
(m) "Designated Representative" means the officer of the City appointed in
Section 4 of this ordinance to serve as the City's designated representative in
accordance with RCW 39.46.040(2).
(n) "Final Terms" means the terms and conditions for the sale of a Series of the
Bonds including the amount, date or dates, denominations, interest rate or rates (or
mechanism for determining interest rate or rates), payment dates, final maturity,
redemption rights, price, and other terms or covenants.
(o) "Finance Director" means the Finance Director or such other officer of the City
who succeeds to substantially all of the responsibilities of that office.
(p) "Fiscal Agent" means the fiscal agent of the State, as the same may be
designated by the State from time to time.
(q) "Government Obligations" has the meaning given in RCW 39.53.010, as now
in effect or as may hereafter be amended.
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(r) "Issue Date" means, with respect to a Bond, the date of initial issuance and
delivery of that Bond to the Purchaser in exchange for the purchase price of that Bond.
(s) "Letter of Representations" means the Blanket Issuer Letter of
Representations between the City and DTC, dated October 18, 1999, as it may be
amended from time to time, and any successor or substitute letter relating to the
operational procedures of the Securities Depository.
(t) "MSRB" means the Municipal Securities Rulemaking Board.
(u) "Official Statement" means an offering document, disclosure document, private
placement memorandum or substantially similar disclosure document provided to
purchasers and potential purchasers in connection with the initial offering of a Series of
the Bonds in conformance with Rule 15c2 -12 or other applicable regulations of the SEC.
(v) "Owner" means, without distinction, the Registered Owner and the Beneficial
Owner.
(w) "Project" means improvements to Interurban Avenue South, reconstruction or
retrofit of the Boeing Access Road Bridge and other road construction and capital
improvement projects of the City, as deemed necessary and advisable by the City
Council. Incidental costs incurred in connection with carrying out and accomplishing the
Project, consistent with RCW 39.46.070, may be included as costs of the Project. The
Project includes acquisition, construction and installation of all necessary equipment,
apparatus, accessories, fixtures and appurtenances. The term "land" includes all real
property and all appurtenant improvements, structures and interests therein.
(x) "Project Fund" means the fund or account designated or created by the
Finance Director for the purpose of carrying out the Project.
(y) `Purchaser" means the corporation, firm, association, partnership, trust, bank,
financial institution or other legal entity or group of entities selected by the Designated
Representative to serve as purchaser in a private placement, underwriter or placement
agent in a negotiated sale or awarded as the successful bidder in a competitive sale of
any Series of the Bonds.
(z) "Rating Agency" means any nationally recognized rating agency then
maintaining a rating on the Bonds at the request of the City.
(aa) "Record Date" means the Bond Registrar's close of business on the 15th day
of the month preceding an interest payment date. With respect to redemption of a Bond
prior to its maturity, the Record Date shall mean the Bond Registrar's close of business
on the date on which the Bond Registrar sends the notice of redemption in accordance
with Section 9.
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(bb) "Registered Owner' means, with respect to a Bond, the person in whose name
that Bond is registered on the Bond Register. For so long as the City utilizes the book -
entry only system for the Bonds under the Letter of Representations, Registered Owner
shall mean the Securities Depository.
(cc) "Rule 15c2 -12" means Rule 15c2 -12 promulgated by the SEC under the
Securities Exchange Act of 1934, as amended.
(dd) "SEC" means the United States Securities and Exchange Commission.
(ee) "Securities Depository" means DTC, any successor thereto, any substitute
securities depository selected by the City that is qualified under applicable laws and
regulations to provide the services proposed to be provided by it, or the nominee of any
of the foregoing.
(ff) "Series of the Bonds" or "Series" means a series of the Bonds issued pursuant
to this ordinance.
(gg) "State" means the State of Washington.
(hh) "System of Registration" means the system of registration for the City's bonds
and other obligations set forth in Ordinance No. 1338 of the City.
(ii) "Term Bond" means each Bond designated as a Term Bond and subject to
mandatory redemption in the years and amounts set forth in the Bond Purchase
Agreement.
(jj) "Undertaking" means the undertaking to provide continuing disclosure entered
into pursuant to Section 15 of this ordinance.
Section 2. Findings and Determinations. The City takes note of the following
facts and makes the following findings and determinations:
(a) Authority and Description of Project. The City is in need of making
improvements to Interurban Avenue South, reconstructing or retrofitting a bridge on the
Boeing Access Road and carrying out other road construction and improvement
projects. The City Council finds that it is in the best interests of the City to carry out the
Project.
(b) Plan of Financing. Pursuant to applicable law, including without limitations
Chapters 35.37, 39.36 and 39.46 RCW, the City is authorized to issue general
obligation bonds for the purpose of financing the Project. The total expected cost of the
Project is approximately $23,761,000, which is expected to be made up of proceeds of
the Bonds, loans, grants, mitigation payments and other available money of the City.
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(c) Debt Capacity. The maximum amount of indebtedness authorized by this
ordinance is $6,250,000. Based on the following facts, this amount is to be issued
within the amount permitted to be issued by the City for general municipal purposes
without a vote:
(1) The assessed valuation of the taxable property for regular levies within the
City as ascertained by the last preceding assessment for City purposes for collection in
the calendar year 2015 is $5,039,692,101.
(2) As of February 12, 2015, the City has limited tax general obligation
indebtedness, consisting of bonds, notes, leases and conditional sales contracts
outstanding in the principal amount of $25,538,621, which is incurred within the limit of
up to 1Y2% of the value of the taxable property within the City permitted for general
municipal purposes without a vote.
(3) As of February 12, 2015, the City has no unlimited tax, general obligation
indebtedness for general municipal purposes; for City -owned water, artificial light, and
sewers; and for acquiring or developing open space, park facilities, and capital facilities
associated with economic development.
d. The Bonds. For the purpose of providing the funds necessary to carry out the
Project and to pay the costs of issuance and sale of the Bonds, the City Council finds
that it is in the best interests of the City and its taxpayers to issue and sell the Bonds to
the Purchaser, pursuant to the terms set forth in the Bond Purchase Agreement as
approved by the City's Designated Representative consistent with this ordinance.
Section 3. Authorization of Bonds. The City is authorized to borrow money on
the credit of the City and issue negotiable limited tax general obligation bonds
evidencing indebtedness in one or more Series in an aggregate principal amount not to
exceed $6,250,000 to provide funds necessary to carry out the Project and to pay the
costs of issuance and sale of the Bonds. The proceeds of the Bonds allocated to
paying the cost of the Project shall be deposited as set forth in Section 8 of this
ordinance and shall be used to carry out the Project, or a portion of the Project, in such
order of time as the City determines is advisable and practicable.
Section 4. Description of the Bonds; Appointment of Designated
Representative. The Finance Director is appointed as the Designated Representative
of the City and is authorized and directed to conduct the sale of the Bonds in the
manner and upon the terms deemed most advantageous to the City, and to approve the
Final Terms of each Series of the Bonds, with such additional terms and covenants as
the Designated Representative deems advisable, within the parameters set forth in
Exhibit A, which is attached to this ordinance and incorporated by this reference.
Section 5. Bond Registrar; Registration and Transfer of Bonds.
(a) Registration of Bonds. Each Bond shall be issued only in registered form as
to both principal and interest and the ownership of each Bond shall be recorded on the
Bond Register.
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(b) Bond Registrar; Duties. The Fiscal Agent is appointed as initial 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 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 the System of
Registration. The Bond Registrar shall be responsible for its representations contained
in the Bond Registrar's Certificate of Authentication on each Bond. The Bond Registrar
may become an Owner 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 Owners.
(c) Bond Register; Transfer and Exchange. The Bond Register shall contain the
name and mailing address of each Registered Owner and the principal amount and
number of each Bond held by each Registered Owner. A Bond surrendered to the
Bond Registrar may be exchanged for a Bond or Bonds in any Authorized
Denomination of an equal aggregate principal amount and of the same Series, interest
rate and maturity. A Bond 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 any Bond or transfer registered ownership during the period between the
applicable Record Date and the next upcoming interest payment or redemption date.
(d) Securities Depository; Book -Entry Only Form. If a Bond is to be issued in
book -entry form, DTC shall be appointed as initial Securities Depository and each such
Bond initially shall be registered in the name of Cede & Co., as the nominee of DTC.
Each Bond registered in the name of the Securities Depository shall be held fully
immobilized in book -entry only form by the Securities Depository in accordance with the
provisions of the Letter of Representations. Registered ownership of any Bond
registered in the name of the Securities Depository may not be transferred except:
(i) to any successor Securities Depository;
(ii) to any substitute Securities Depository appointed by the City; or
(iii) to any person if the Bond is no longer to be held in book -entry only form.
Upon the resignation of the Securities Depository, or upon a termination of the services
of the Securities Depository by the City, the City may appoint a substitute Securities
Depository. If (i) the Securities Depository resigns and the City does not appoint a
substitute Securities Depository, or (ii) the City terminates the services of the Securities
Depository, the Bonds no longer shall be held in book -entry only form and the registered
ownership of each Bond may be transferred to any person as provided in this
ordinance.
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Neither the City nor the Bond Registrar shall have any obligation to participants of any
Securities Depository or the persons for whom they act as nominees regarding
accuracy of any records maintained by the Securities Depository or its participants.
Neither the City nor the Bond Registrar shall be responsible for any notice that is
permitted or required to be given to a Registered Owner except such notice as is
required to be given by the Bond Registrar to the Securities Depository.
Section 6. Form and Execution of Bonds.
(a) Form of Bonds; Signatures and Seal. Each Bond shall be prepared in a form
consistent with the provisions of this ordinance and State law. Each Bond shall be
signed by the Mayor and the 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. If any officer whose manual or facsimile signature
appears on a Bond ceases to be an officer of the City authorized to sign bonds before
the Bond bearing his or her manual or facsimile signature is authenticated by the Bond
Registrar, or issued or delivered by the City, that Bond 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 its Issue
Date.
(b) Authentication. Only a Bond bearing a Certificate of Authentication in
substantially the following form, manually signed by the Bond Registrar, shall be valid or
obligatory for any purpose or entitled to the benefits of this ordinance: "Certificate Of
Authentication. This Bond is one of the fully registered City of Tukwila, Washington,
Limited Tax General Obligation Bonds, 2015, described in the Bond Ordinance." The
authorized signing of a Certificate of Authentication shall be conclusive evidence that
the Bond so authenticated has been duly executed, authenticated and delivered and is
entitled to the benefits of this ordinance.
Section 7. Payment of Bonds. Principal of and interest on each Bond shall be
payable in lawful money of the United States of America. Principal of and interest on
each Bond registered in the name of the Securities Depository is payable in the manner
set forth in the Letter of Representations. Interest on each Bond not registered in the
name of the Securities Depository is payable by electronic transfer on the interest
payment date, or by check or draft of the Bond Registrar mailed on the interest payment
date to the Registered Owner at the address appearing on the Bond Register on the
Record Date. However, the City is not required to make electronic transfers except
pursuant to a request by a Registered Owner in writing received on or prior to the
Record Date and at the sole expense of the Registered Owner. Principal of each Bond
not registered in the name of the Securities Depository is payable upon presentation
and surrender of the Bond by the Registered Owner to the Bond Registrar. The Bonds
are not subject to acceleration under any circumstances.
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Section 8. Funds and Accounts; Deposit of Proceeds.
(a) Bond Account. The 2015 Bond Account is created within the City's general
obligation bond repayment fund for the sole purpose of paying principal of and interest
on the Bonds. Bond proceeds in excess of the amounts needed to pay the costs of the
Project and the costs of issuance, if any, shall be deposited into the Bond Account. All
amounts allocated to the payment of the principal of and interest on the Bonds shall be
deposited in the Bond Account as necessary for the timely payment of amounts due
with respect to the Bonds. The principal of and interest on the Bonds shall be paid out
of the Bond Account. Until needed for that purpose, the City may invest money in the
Bond Account temporarily in any legal investment, and the investment earnings shall be
retained in the Bond Account and used for the purposes of that fund.
(b) Project Fund. The Project Fund has been previously created as a fund of the
City for the purpose of paying the costs of the Project. Proceeds received from the sale
and delivery of the Bonds shall be deposited into the Project Fund and used to pay the
costs of the Project and costs of issuance of the Bonds. Until needed to pay such
costs, the City may invest those proceeds temporarily in any legal investment, and the
investment earnings shall be retained in the Project Fund and used for the purposes of
that fund, except that earnings subject to a federal tax or rebate requirement (if
applicable) may be withdrawn from the Project Fund and used for those tax or rebate
purposes.
Section 9. Redemption Provisions and Purchase of Bonds.
(a) Optional Redemption. The Bonds shall be subject to redemption at the option
of the City on terms acceptable to the Designated Representative, as set forth in the
Bond Purchase Agreement, consistent with the parameters set forth in Exhibit A.
(b) Mandatory Redemption. Each Bond that is designated as a Term Bond in the
Bond Purchase Agreement, consistent with the parameters set forth in Exhibit A and
except as set forth below, shall be called for redemption at a price equal to the stated
principal amount to be redeemed, plus accrued interest, on the dates and in the
amounts as set forth in the Bond Purchase Agreement. If a Term Bond is redeemed
under the optional redemption provisions, defeased or purchased by the City and
surrendered for cancellation, the principal amount of the Term Bond so redeemed,
defeased or purchased (irrespective of its actual redemption or purchase price) shall be
credited against one or more scheduled mandatory redemption installments for that
Term Bond. The City shall determine the manner in which the credit is to be allocated
and shall notify the Bond Registrar in writing of its allocation prior to the earliest
mandatory redemption date for that Term Bond for which notice of redemption has not
already been given.
(c) Selection of Bonds for Redemption; Partial Redemption. If fewer than all of
the outstanding Bonds are to be redeemed at the option of the City, the City shall select
the Series and maturities to be redeemed. If fewer than all of the outstanding Bonds of
a maturity of a Series are to be redeemed, the Securities Depository shall select Bonds
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registered in the name of the Securities Depository to be redeemed in accordance with
the Letter of Representations, and the Bond Registrar shall select all other Bonds to be
redeemed randomly in such manner as the Bond Registrar shall determine. All or a
portion of the principal amount of any Bond that is to be redeemed may be redeemed in
any Authorized Denomination. If less than all of the outstanding principal amount of any
Bond is redeemed, upon surrender of that Bond to the Bond Registrar, there shall be
issued to the Registered Owner, without charge, a new Bond (or Bonds, at the option of
the Registered Owner) of the same Series, maturity and interest rate in any Authorized
Denomination in the aggregate principal amount to remain outstanding.
(d) Notice of Redemption. Notice of redemption of each Bond registered in the
name of the Securities Depository shall be given in accordance with the Letter of
Representations. Notice of redemption of each other Bond, unless waived by the
Registered Owner, shall be given by the Bond Registrar not less than 20 nor more than
60 days prior to the date fixed for redemption by first -class mail, postage prepaid, to the
Registered Owner, at the address appearing on the Bond Register on the Record Date.
The requirements of the preceding sentence shall be satisfied when notice has been
mailed as so provided, whether or not it is actually received by an Owner. In addition,
the redemption notice shall be mailed or sent electronically within the same period to
the MSRB (if required under the Undertaking), to each Rating Agency, and to such
other persons and with such additional information as the Finance Director shall
determine, but these additional mailings shall not be a condition precedent to the
redemption of any Bond.
(e) Rescission of Optional Redemption Notice. In the case of an optional
redemption, the notice of redemption may state that the City retains the right to rescind
the redemption notice and the redemption by giving a notice of rescission to the affected
Registered Owners at any time prior to the scheduled optional redemption date. Any
notice of optional redemption that is so rescinded shall be of no effect, and each Bond
for which a notice of optional redemption has been rescinded shall remain outstanding.
(f) Effect of Redemption. Interest on each Bond called for redemption shall
cease to accrue on the date fixed for redemption, unless either the notice of optional
redemption is rescinded as set forth above, or money sufficient to effect such
redemption is not on deposit in the Bond Account or in a trust account established to
refund or defease the Bond.
(g) Purchase of Bonds. The City reserves the right to purchase any or all of the
Bonds offered to the City at any time at any price acceptable to the City plus accrued
interest to the date of purchase.
Section 10. Failure To Pay Bonds. If the principal of any Bond is not paid when
the Bond is properly presented at its maturity or date fixed for redemption, the City shall
be obligated to pay interest on that Bond at the same rate provided in the Bond from
and after its maturity or date fixed for redemption until that Bond, both principal and
interest, is paid in full or until sufficient money for its payment in full is on deposit in the
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Bond Account, or in a trust account established to refund or defease the Bond, and the
Bond has been called for payment by giving notice of that call to the Registered Owner.
Section 11. Pledge of Taxes. The Bonds constitute a general indebtedness of
the City and are payable from tax revenues of the City and such other money as is
lawfully available and pledged by the City for the payment of principal of and interest on
the Bonds. For as long as any of the Bonds are outstanding, the City irrevocably
pledges that it shall, in the manner provided by law within the constitutional and
statutory limitations provided by law without the assent of the voters, include in its
annual property tax levy amounts sufficient, together with other money that is lawfully
available, to pay principal of and interest on the Bonds as the same become due. The
full faith, credit and resources of the City are pledged irrevocably for the prompt
payment of the principal of and interest on the Bonds and such pledge shall be
enforceable in mandamus against the City.
Section 12. Tax Covenants; Designation of Bonds as "Qualified Tax Exempt
Obligations."
(a) Preservation of Tax Exemption for Interest on Bonds. The City covenants
that it will take all actions necessary to prevent interest on the Bonds from being
included in gross income for federal income tax purposes, and it will neither take any
action nor make or permit any use of proceeds of the Bonds or other funds of the City
treated as proceeds of the Bonds that will cause interest on the Bonds to be included in
gross income for federal income tax purposes. The City also covenants that it will, to
the extent the arbitrage rebate requirements of Section 148 of the Code are applicable
to the Bonds, take all actions necessary to comply (or to be treated as having complied)
with those requirements in connection with the Bonds.
(b) Post - Issuance Compliance. The Finance Director is authorized and directed
to review and update the City's written procedures to facilitate compliance by the City
with the covenants in this ordinance and the applicable requirements of the Code that
must be satisfied after the Issue Date to prevent interest on the Bonds from being
included in gross income for federal tax purposes.
(c) Designation of Bonds as "Qualified Tax - Exempt Obligations." A Series of
the Bonds may be designated as "qualified tax - exempt obligations" for the purposes of
Section 265(b)(3) of the Code, if the following conditions are met:
(1) the Series does not constitute "private activity bonds" within the meaning of
Section 141 of the Code,
(2) the reasonably anticipated amount of tax - exempt obligations (other than
private activity bonds and other obligations not required to be included in such
calculation) that the City and any entity subordinate to the City (including any entity that
the City controls, that derives its authority to issue tax - exempt obligations from the City,
or that issues tax - exempt obligations on behalf of the City) will issue during the calendar
year in which the Series is issued will not exceed $10,000,000; and
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12
(3) the amount of tax - exempt obligations, including the Series, 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 Series is issued does not exceed
$10,000,000.
Section 13. Refunding or Defeasance of the Bonds. The City may issue
refunding bonds pursuant to State law or use money available from any other lawful
source to carry out a refunding or defeasance plan, which may include:
(a) paying when due the principal of and interest on any or all of the Bonds (the
"defeased Bonds ");
(b) redeeming the defeased Bonds prior to their maturity; and
(c) paying the costs of the refunding or defeasance.
If the City sets aside in a special trust fund or escrow account irrevocably pledged to
that redemption or defeasance (the "trust account "), money and /or Government
Obligations maturing at a time or times and bearing interest in amounts sufficient to
redeem, refund or defease the defeased Bonds in accordance with their terms, 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. Thereafter, the Owners of defeased Bonds shall
have the right to receive payment of the principal of and interest on the defeased Bonds
solely from the trust account and the defeased Bonds shall be deemed no longer
outstanding. In that event, the City may apply money remaining in any fund or account
(other than the trust account) established for the payment or redemption of the
defeased Bonds to any lawful purpose.
Unless otherwise specified by the City in a refunding or defeasance plan, notice of
refunding or defeasance shall be given, and selection of Bonds for any partial refunding
or defeasance shall be conducted in the manner prescribed in this ordinance for the
redemption of Bonds.
Section 14. Sale and Delivery of the Bonds.
(a) Manner of Sale of Bonds; Delivery of Bonds. The Designated
Representative is authorized to sell each Series of the Bonds by negotiated sale or
private placement or by competitive sale in accordance with a notice of sale consistent
with this ordinance, based on the assessment of the Designated Representative of
market conditions, in consultation with appropriate City officials and staff, Bond Counsel
and other advisors. In determining the method of sale of a Series and accepting the
Final Terms, the Designated Representative shall take into account those factors that,
in the judgment of the Designated Representative, may be expected to result in the
lowest true interest cost to the City.
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(b) Procedure for Negotiated Sale or Private Placement. If the Designated
Representative determines that a Series of the Bonds is to be sold by negotiated sale or
private placement, the Designated Representative shall select one or more Purchasers
with which to negotiate such sale. The Bond Purchase Agreement for each Series of
the Bonds shall set forth the Final Terms. The Designated Representative is authorized
to execute the Bond Purchase Agreement on behalf of the City, so long as the terms
provided therein are consistent with the terms of this ordinance.
(c) Procedure for Competitive Sale. If the Designated Representative
determines that a Series of the Bonds is to be sold by competitive sale, the Designated
Representative shall cause the preparation of an official notice of bond sale setting forth
parameters for the Final Terms and any other bid parameters that the Designated
Representative deems appropriate consistent with this ordinance. Bids for the purchase
of each Series of the Bonds shall be received at such time or place and by such means
as the Designated Representative directs. On the date and time established for the
receipt of bids, the Designated Representative (or the designee of the Designated
Representative) shall open bids and shall cause the bids to be mathematically verified.
The Designated Representative is authorized to award, on behalf of the City, the
winning bid and accept the winning bidder's offer to purchase that Series of the Bonds,
with such adjustments to the aggregate principal amount and principal amount per
maturity as the Designated Representative deems appropriate, consistent with the
terms of this ordinance, and such award shall constitute the Bond Purchase Agreement.
The Designated Representative may reject any or all bids submitted and may waive any
formality or irregularity in any bid or in the bidding process if the Designated
Representative deems it to be in the City's best interest to do so. If all bids are rejected,
that Series of the Bonds may be sold pursuant to negotiated sale or in any manner
provided by law as the Designated Representative determines is in the best interest of
the City, within the parameters set forth in this ordinance.
(d) Preparation, Execution and Delivery of the Bonds. The Bonds will be
prepared at City expense and will be delivered to the Purchaser in accordance with the
Bond Purchase Agreement, together with the approving legal opinion of Bond Counsel
regarding the Bonds.
Section 15. Official Statement; Continuing Disclosure.
(a) Preliminary Official Statement Deemed Final. The Designated
Representative shall review and, if acceptable to him or her, approve the preliminary
Official Statement prepared in connection with each sale of a Series of the Bonds to the
public or through a Purchaser as a placement agent. For the sole purpose of the
Purchaser's compliance with paragraph (b)(1) of Rule 15c2 -12, if applicable, the
Designated Representative is authorized to deem that preliminary Official Statement
final as of its date, except for the omission of information permitted to be omitted by
Rule 15c2 -12. The City approves the distribution to potential purchasers of the Bonds
of a preliminary Official Statement that has been approved by the Designated
Representative and been deemed final, if applicable, in accordance with this
subsection.
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(b) Approval of Final Official Statement. The City approves the preparation of a
final Official Statement for each Series of the Bonds to be sold to the public in the form
of the preliminary Official Statement that has been approved and deemed final in
accordance with subsection (a), with such modifications and amendments as the
Designated Representative deems necessary or desirable, and further authorizes the
Designated Representative to execute and deliver such final Official Statement to the
Purchaser if required under Rule 15c2 -12. The City authorizes and approves the
distribution by the Purchaser of the final Official Statement so executed and delivered to
purchasers and potential purchasers of a Series of the Bonds.
(c) Undertaking to Provide Continuing Disclosure. If necessary to meet the
requirements of paragraph (b)(5) of Rule 15c2 -12, as applicable to the Purchaser acting
as a participating underwriter for a Series of the Bonds, the Designated Representative
is authorized to execute a written undertaking to provide continuing disclosure for the
benefit of holders of a Series of the Bonds in substantially the form attached as
Exhibit B.
Section 16. Supplemental and Amendatory Ordinances. The City may
supplement or amend this ordinance for any one or more of the following purposes
without the consent of any Owners of the Bonds:
(a) To add covenants and agreements that do not materially adversely affect the
interests of Owners, or to surrender any right or power reserved to or conferred upon
the City.
(b) To cure any ambiguities, or to cure, correct or supplement any defective
provision contained in this ordinance in a manner that does not materially adversely
affect the interest of the Beneficial Owners of the Bonds.
Section 17. General Authorization and Ratification. The appropriate officers of
the City are severally authorized to take such actions and to execute such documents
as in their judgment may be necessary or desirable to carry out the transactions
contemplated in connection with this ordinance, and to do everything necessary for the
prompt delivery of the Bonds to the Purchaser and for the proper application, use and
investment of the proceeds of the Bonds. All actions taken prior to the effective date of
this ordinance in furtherance of the purposes described in this ordinance and not
inconsistent with the terms of this ordinance are ratified and confirmed in all respects.
Section 18. 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.
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Section 19. Severability. The provisions of this ordinance are declared to be
separate and severable. If a court of competent jurisdiction, all appeals having been
exhausted or all appeal periods having run, finds any provision of this ordinance to be
invalid or unenforceable as to any person or circumstance, such offending provision
shall, if feasible, be deemed to be modified to be within the limits of enforceability or
validity. However, if the offending provision cannot be so modified, it shall be null and
void with respect to the particular person or circumstance, and all other provisions of
this ordinance in all other respects, and the offending provision with respect to all other
persons and all other circumstances, shall remain valid and enforceable.
Section 20. 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 , 2015.
ATTEST /AUTHENTICATED:
Christy O'Flaherty, MMC, City Clerk
APPROVED AS TO FORM BY:
Bond Counsel
Attachments:
Jim Haggerton, Mayor
Filed with the City Clerk:
Passed by the City Council:
Published:
Effective Date:
Ordinance Number:
Exhibit A — Parameters for Final Terms (Description of the Bonds)
Exhibit B — Form of Undertaking to Provide Continuing Disclosure
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Exhibit A
EXHIBIT A
DESCRIPTION OF THE BONDS
(a) Principal Amount. The Bonds may be issued in one or more Series
and shall not exceed the aggregate principal
amount of $6,250,000.
(b) Date or Dates. Each Bond shall be dated its Issue Date, which
date may not be later than December 31, 2015.
(c) Denominations, Name, etc. The Bonds shall be issued in Authorized
Denominations and shall be numbered separately
in the manner and shall bear any name and
additional designation as deemed necessary or
appropriate by the Designated Representative.
(d) Interest Rate(s). Each Bond shall bear interest at a fixed rate per
annum (computed on the basis of a 360 -day year
of twelve 30 -day months) from the Issue Date or
from the most recent date for which interest has
been paid or duly provided for, whichever is later.
One or more rates of interest may be fixed for the
Bonds. No rate of interest for any Bond may
exceed 5.00 %, and the true interest cost to the City
for each Series of the Bonds may not exceed
4.25 %.
(e) Payment Dates. Interest shall be payable semiannually on dates
acceptable to the Designated Representative,
commencing no later than one year following the
Issue Date. Principal payments shall commence
on a date acceptable to the Designated
Representative and shall be payable at maturity or
in mandatory redemption installments annually
thereafter, on dates acceptable to the Designated
Representative.
(f) Final Maturity. Each Series shall mature no later than the date that
is twenty -one years after the Issue Date of that
Series.
A -1
17
(g) Redemption Rights. The Designated Representative may approve in
the Bond Purchase Agreement provisions for the
optional and mandatory redemption of Bonds,
subject to the following:
(1) Optional Redemption. Any Bond may be
designated as being (A) subject to redemption
at the option of the City prior to its maturity
date on the dates and at the prices set forth in
the Bond Purchase Agreement; or (B) not
subject to redemption prior to its maturity date.
If a Bond is subject to optional redemption
prior to its maturity, it must be subject to such
redemption on one or more dates occurring
not more than 10'/2 years after the Issue Date.
(2) Mandatory Redemption. Any Bond may be
designated as a Term Bond, subject to
mandatory redemption prior to its maturity on
the dates and in the amounts set forth in the
Bond Purchase Agreement.
(h) Price. The purchase price for each Series of the Bonds
may not be less than 98% or more than 120% of
the stated principal amount of that Series.
(i) Other Terms and (1) A Series of the Bonds may not be issued if it
Conditions. would cause the indebtedness of the City to
exceed the City's legal debt capacity on the
Issue Date.
(2) The Designated Representative may
determine whether it is in the City's best
interests to provide for bond insurance or
other credit enhancement; and may accept
such additional terms, conditions and
covenants as he or she may determine are in
the best interests of the City, consistent with
this ordinance.
18 A -2
Exhibit B
FXHIRIT R
FORM OF
UNDERTAKING TO PROVIDE CONTINUING DISCLOSURE
City of Tukwila, Washington
Limited Tax General Obligation Bonds, 2015
The City of Tukwila, Washington (the "City "), makes the following written
Undertaking for the benefit of holders of the above - referenced bonds (the "Bonds "), for
the sole purpose of assisting the Purchaser in meeting the requirements of paragraph
(b)(5) of Rule 15c2 -12, as applicable to a participating underwriter for the Bonds.
Capitalized terms used but not defined below shall have the meanings given in
Ordinance No. of the City (the "Bond Ordinance ").
(a) Undertaking to Provide Annual Financial Information and Notice of Listed
Events. The City undertakes to provide or cause to be provided, either directly or
through a designated agent, to the MSRB, in an electronic format as prescribed by the
MSRB, accompanied by identifying information as prescribed by the MSRB:
(i) Annual financial information and operating data of the type included in the
final official statement for the Bonds and described in paragraph
(b) ( "annual financial information ");
(ii) Timely notice (not in excess of 10 business days after the occurrence of
the event) of the occurrence of any of the following events with respect to
the Bonds:
(1) principal and interest payment delinquencies;
(2) non - payment related defaults, if material;
(3) unscheduled draws on debt service reserves reflecting financial
difficulties;
(4) unscheduled draws on credit enhancements reflecting financial
difficulties;
(5) substitution of credit or liquidity providers, or their failure to perform;
(6) adverse tax opinions, the issuance by the Internal Revenue Service of
proposed or final determinations of taxability, Notice of Proposed
Issue (IRS Form 5701 — TEB) or other material notices or
determinations with respect to the tax status of the Bonds, or other
material events affecting the tax status of the Bonds;
(7) modifications to rights of holders of the Bonds, if material;
B -1
19
(8) bond calls (other than scheduled mandatory redemptions of Term
Bonds), if material, and tender offers;
(9) defeasances;
(10) release, substitution, or sale of property securing repayment of the
Bonds, if material;
(11) rating changes;
(12) bankruptcy, insolvency, receivership or similar event of the City, as
such "Bankruptcy Events" are defined in Rule 15c2 -12;
(13) the consummation of a merger, consolidation, or acquisition involving
the City or the sale of all or substantially all of the assets of the City
other than in the ordinary course of business, the entry into a
definitive agreement to undertake such an action or the termination of
a definitive agreement relating to any such actions, other than
pursuant to its terms, if material; and
(14) appointment of a successor or additional trustee or the change of
name of a trustee, if material.
(iii) Timely notice of a failure by the City to provide required annual financial
information on or before the date specified in paragraph (b).
(b) Type of Annual Financial Information Undertaken to be Provided. The
annual financial information that the City undertakes to provide in paragraph (a):
(i) Shall consist of:
(1) annual financial statements prepared (except as noted in the financial
statements) in accordance with applicable generally accepted
accounting principles applicable to local governmental units of the
State such as the City, as such principles may be changed from time
to time, which statements may be unaudited, provided, that if and
when audited financial statements are prepared and available they will
be provided;
(2) principal amount of general obligation bonds outstanding at the end of
the applicable fiscal year;
(3) assessed valuation for that fiscal year; and
(4) property tax levy amounts and rates for that fiscal year;
(ii) Shall be provided not later than the last day of the ninth month after the
end of each fiscal year of the City (currently, a fiscal year ending
December 31), as such fiscal year may be changed as required or
permitted by State law, commencing with the City's fiscal year ending
December 31, 2014; and
20 B -2
(iii) May be provided in a single or multiple documents, and may be
incorporated by specific reference to documents available to the public on
the Internet website of the MSRB or filed with the SEC.
(c) Amendment of Undertaking. This Undertaking is subject to amendment after
the primary offering of the Bonds without the consent of any holder of any Bond, or of
any broker, dealer, municipal securities dealer, participating underwriter, Rating Agency
or the MSRB, under the circumstances and in the manner permitted by Rule 15c2 -12.
The City will give notice to the MSRB of the substance (or provide a copy) of any
amendment to the Undertaking and a brief statement of the reasons for the amendment.
If the amendment changes the type of annual financial information to be provided, the
annual financial information containing the amended financial information will include a
narrative explanation of the effect of that change on the type of information to be
provided.
(d) Beneficiaries. This Undertaking shall inure to the benefit of the City and the
holder of each Bond, and shall not inure to the benefit of or create any rights in any
other person.
(e) Termination of Undertaking. The City's obligations under this Undertaking
shall terminate upon the legal defeasance of all of the Bonds. In addition, the City's
obligations under this Undertaking shall terminate if the provisions of Rule 15c2 -12 that
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 Bond Counsel delivered to
the City, and the City provides timely notice of such termination to the MSRB.
(f) Remedy for Failure to Comply with Undertaking. As soon as practicable
after the City learns of any failure to comply with this 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 this Undertaking shall constitute a default in
respect of the Bonds. The sole remedy of any holder of a Bond shall be to take action
to compel the City or other obligated person to comply with this Undertaking, including
seeking an order of specific performance from an appropriate court.
(g) Designation of Official Responsible to Administer Undertaking. The
Finance Director or his or her designee is the person designated, in accordance with the
Bond Ordinance, to carry out the Undertaking in accordance with Rule 15c2 -12,
including, without limitation;, the following actions:
(i) Preparing and filing the annual financial information undertaken to be
provided;
(ii) Determining whether any event specified in paragraph (a) has occurred,
assessing its materiality, where necessary, with respect to the Bonds, and
preparing and disseminating any required notice of its occurrence;
B -3 21
(iii) Determining whether any person other than the City is an "obligated
person" within the meaning of Rule 15c2 -12 with respect to the Bonds, and
obtaining from such person an undertaking to provide any annual financial
information and notice of listed events for that person required under Rule
15c2 -12;
(iv) Selecting, engaging and compensating designated agents and consultants,
including financial advisors and legal counsel, to assist and advise the City
in carrying out this Undertaking; and
(v) Effecting any necessary amendment of this Undertaking.
22 B -4
CERTIFICATION
I, the undersigned, City Clerk of the City of Tukwila, Washington (the "City "), hereby
certify as follows:
1. The attached copy of Ordinance No. (the "Ordinance ") is a full, true and
correct copy of an ordinance duly passed at a regular meeting of the City Council of the
City held at the regular meeting place thereof on March 16, 2015, as that ordinance
appears on the minute book of the City.
2. The Ordinance will be in full force and effect five days after publication in the
City's official newspaper, which publication date is expected to be March 19, 2015.
3. A quorum of the members of the City Council was present throughout the
meeting and a majority of the members voted in the proper manner for the passage of
the Ordinance.
Dated: March 16, 2015.
CITY OF TUKWILA, WASHINGTON
Christy O'Flaherty, MMC, City Clerk
23
24
OPERATING TRANSFERS - DEBT SERVICE
PROJECT TRANSFERS
General Fund project transfers are made to support capital and governmental projects. The
contribution required is based on the financial status of the project fund (such as the Arterial
Street fund, the Land /Parks Acquisition fund, etc.), the amount of dedicated revenues received
into the fund, the amount of specific funding sources such as grants and the amount of the
existing fund balance.
2015 - 2020 Financial Planning Model XXV)
25
BUDGET
PROJECTIONS
TOTAL
DEBT SERVICE
Use of Debt Proceeds
2013
2014
2015
2016
2017
2018
2019
2020
2015 -2020
EXISTING DEBT:
LTGO 2003
Golf course club house
$ 715
$ -
$ -
$ -
$ -
$ -
$ -
$ -
$ -
Early payoff
2,665
LTGO 2003
Community center and Fire station
491
488
-
Refunding
#03
LTGO 2008
City I Wl Annex, 6300 bldg, and
737
812
811
811
809
809
811
4,051
Refunding
Urban revitalization - Tukwila
Village
SCORE 2009
South County Corretional Entity,
431
431
428
427
428
428
428
2,139
SCORE Jail facility
LTGO 2010
Southcenter Parkway Extension,
518
521
524
524
519
513
505
496
3,080
emergency management
Valley Com 2010
Valley Communications Center
241
229
229
-
-
229
Refunding
operating facility
LTGO 2011
Arterial street portion of 2003 bond -
168
548
546
549
552
549
549
545
3,290
Refunding
South Park bridge transaction
I -TGO 2012
"Tukwila Metropolitan Park District
113
113
113
113
113
113
113
113
679
Existing debt
$ b,079
$ 3,142
$ 2,223
$2,424
$ 2,420
$ 2,412
$ 2,406
$ 1,582
$ 1.3,468
PLANNED DEBT:
LTGO 2014
TIC3 Redevelopment $ 3,850
313
313
287
287
287
287
1,774
2015 Credit line
TIB Redevelopment 2,250
LTGO 2015
Interurban AveSouth 3,100
124
248
248
248
248
248
1,364
Boeing Access Road bridge 2,500
100
200
200
200
200
200
1,100
Planned debt
$11,700
$
$
$ 537
$ 761
$ 735
$ 735
$ 735
$ 735
$ 4,238
PROPOSED DEBT:
LTGO 2016
42nd $ 4,400
117
352
352
352
352
1,525
53rd
-
-
Proposed debt
$ 4,400
$ -
$
$ -
$ 117
$ 352
$ 352
$ 352
$ 352
$ 1,525
TOTAL Estimate / Projections
$ 6,079
$ 3,142
$ 2,760
$3,303
$ 3,507
$ 3,499
$ 3,493
$ 2,669
$ 19,231
PROJECT TRANSFERS
General Fund project transfers are made to support capital and governmental projects. The
contribution required is based on the financial status of the project fund (such as the Arterial
Street fund, the Land /Parks Acquisition fund, etc.), the amount of dedicated revenues received
into the fund, the amount of specific funding sources such as grants and the amount of the
existing fund balance.
2015 - 2020 Financial Planning Model XXV)
25
CITY OF TUKWILA CAPITAL PROJECT SUMMARY
2015 to 2020
PROJECT:
Boeing Access Rd over BNRR Bridge Rehabilitation Project No. 99410408
Rehabilitate the existing bridge with a 340' long concrete or steel bridge structure. It will be 110' wide curb to
DESCRIPTION:
curb and have sidewalks on both sides.
The existing bridge is structurally and seismically deficient. Several pedestals are leaning, have concrete
JUSTIFICATION:
spalls, exposed rusty anchor bolts and reinforcements and some cracks. The existing railings do not meet
current bridge standards.
198
Type, size, and location draft report (specifically required for bridges) was completed in 2005. Federal grant
STATUS:
applications were submitted in 2008 and 2010 and the bridge rehabilitation was successful for funding in
2012 for federal bridge funds. A Public Works Trust Fund (PWTF) loan was rescinded in 2013.
MAINT. IMPACT:
Maintenance will be reduced.
Bridge will be rehabilitated in phases to allow continued traffic use. Federal bridge grant of $9,745,600
COMMENT:
requires a 20% local match. A bond issue will be used for the City match.
FINANCIAL Through Estimated
lin -0.nnn,Qi 2n1s 2n1d 2n15 2n1R 2n17 2n18 2019 2020 BEYOND TOTAL
EXPENSES
Design
198
867
288
1,353
Land(R/W)
100
100
Const. Mgmt.
563
561
1,124
Construction
4,850
4,850
9,700
TOTAL EXPENSES
1 1981
967
1 5,701
1 5,411
1 01
01
01
01
01
12,277
FUND SOURCES
Awarded Grant
109
773
4,670
4,193
9,745
Proposed Grant
0
Bond
2,500
2,500
Mitigation
0
City Oper. Revenue
89
194
(1,469)
1,218
0
0
0
0
0
32
TOTAL SOURCES
198
967
1 5,701
1 5,411
1 01
01
01
01
01
12,277
2015 - 2020 Capital Improvement Program 11
26
CITY OF TUKWILA CAPITAL PROJECT SUMMARY
2015 to 2020
PROJECT: Interurban Ave S (S 143 St - Fort Dent Way) Project No. 90310402
DESCRIPTION: Design and construct sidewalks, pavement restoration, drainage, and lighting.
JUSTIFICATION: Pedestrian traffic is forced to walk in traveled way, lighting is substandard, drainage is poor and
pavement failure is accelerating.
STATUS: Completed final design in 2013. Construction awarded on 5/5/14 and will continue into 2015.
MAINT. IMPACT: Reduce annual pavement repairs and increase pedestrian safety.
COMMENT: Federal Hwy STP Grant of $389,000 for design. State TIB grant of $5m, Federal STP grant of $2.145m,
and developer mitigation of $260,000. City Bond for $3.465m in 2014/15.
FINANCIAL Through Estimated
tin annwai 2n1s 2n1a 2015 2018 2017 2018 2019 2020 BEYOND TOTAL
EXPENSES
Design
835
86
921
Land (RNA
209
209
Const. Mgmt.
548
969
1,517
Construction
2,916
5,921
8,837
TOTAL EXPENSES
1,044
3,550
6,890
0
0
0
0
0
1 0
11,484
FUND SOURCES
Awarded TIB Grant
389
2,000
3,000
5,389
Awarded STP Grant
500
1,645
2,145
Mitigation
22
126
148
Bond
3,100
3,100
City Oper. Revenue
655
1,028
(981)
0
0
0
0
0
0
702
TOTAL SOURCES
1,044
3,550
6,890
0
0
0
0
0
0
11,484
2015 - 2020 Capital Improvement Program 14
27
W:
City of Tukwila
Jim Haggerton, Mayor
INFORMATIONAL MEMORANDUM
TO: Mayor Haggerton
Finance and Safety
FROM: Brandon J. Miles Economic Development Liaison
DATE: February 18, 2015
SUBJECT: Installation of Street Pole Banners for the Sounders
ISSUE
Authorization to expend up to $6,500 in lodging tax funds for the manufacture and installation of
street pole banners around the Starfire Sports Complex.
BACKGROUND
Since 2009, the Starfire Sports Complex at Fort Dent Park, has been the training ground to the
Sounders FC. Sounders FC is one of the dominant and most successful soccer clubs in Major
League Soccer (MLS). Besides training at the facility, the Sounders also host US Open Cup
games at the Starfire Stadium. These games are regularly sold out and attract thousands of
visitors to the City.
In 2014, the Sounders announced that they were forming a second team, known as "S2 ". S2 will
play in the United Soccer League (USL) and provide younger players the opportunity to get
game experience. S2 will train and play all of their 14 homes games at Starfire. Additional
games, such as US Open Cup games for S2 and playoff games are also likely. Season ticket
sales have been strong and it is likely that the S2 games will also be sold out.
The following are staff's estimates for the impacts that the S2 games will have this year at
Starfire:
1. At least 28,000 fans total will visit the city for the 14 scheduled home games.
2. Over 5,000 people will visit the City to attend S2 games who live more than 50 miles
away from the City.
3. Of the 5,000 people who travel more than 50 miles away for the games, over 1,000 will
be from outside the State.
These numbers only include the regularly scheduled S2 games and do not include US Open
games, both by S2 and the MLS Sounders team and does not include likely playoff games by
S2 at Starfire.
Staff is requesting $6,500 in lodging tax funds to install up to 20 light pole banners around the
Starfire sports complex. The banners will be installed along Fort Dent Way and Interurban
Avenue. The banners proposed have several goals:
1. Create a festive environment for fans that have come to the City to attend Sounders
events, which will hopefully attract more fans to visit;
2. Build a deeper connection between the Sounders team and organization with the
Southcenter area and Tukwila Community;
3. Allow the City to begin the process of branding the Southcenter area as an
entertainment district. Many entertainment districts, such as the Stadium District in
Seattle and Portland's Rose District, display light pole banners; and
29
INFORMATIONAL MEMO
Page 2
4. Provide and opportunity for the City's name to create impressions to fans visiting
Starfire. All of the banners will clearly have "Tukwila" listed on them.
FINANCIAL IMPACT
With installation and a ten percent contingency, it is estimated that the banners will cost no
more than $6,275. The cost of installation could be much lower if we are able to re -use the
brackets that were used in 2008 for the light pole banners that were installed for the City's
centennial. No general funds dollars will be used. The source of the funds for the installation will
come from the City's Lodging Tax. Lodging tax funds are intended to be used for tourism
promotion, such as the banners being proposed.
RECOMMENDATION
The Council is being asked to place this item on the March 9th Committee of the Whole agenda
for discussion and on the March 16th Consent agenda.
As required State Law, the City's Lodging Tax Advisory Committee (LTAC) considered the
funding request at its meeting on February 20, 2015 and recommended that the City Council
approve the funding request.
ATTACHMENTS
• Draft design of banners (to be provided at Finance and Safety Meeting)
WA2015 Info MemoslLodgingTax banners, doc
30
City of Tukwila
Jim Haggerton, Mayor
INFORMATIONAL MEMORANDUM
TO: Mayor Haggerton
Finance and Safety Committee
FROM: Peggy McCarthy, Finance Director
DATE: February 25, 2015
SUBJECT: Amendment to bond Ordinance No. 2464 and Ordinance No. 2465
ISSUE
Approve an amendment to bond Ordinance No. 2464 and Ordinance No. 2465 revising the
interest and commitment fee payment dates and the interest rate reset dates, respectively.
BACKGROUND
The City previously issued its Limited Tax General Obligation Bond Anticipation Note, 2014 (the
"Note ") pursuant to Ordinance No. 2464 and its Limited Tax General Obligation Bonds, 2014 (the
"Bonds ") pursuant to Ordinance No. 2465. This amendment is necessary to conform the debt
service payment dates set forth in Ordinance No. 2464 and Ordinance No. 2465, respectively, to
the dates specified at closing by the purchasers of the Note and the Bonds, respectively.
FINANCIAL IMPACT
There is no financial impact.
DISCUSSION
Revision to Ordinance No. 2464. The revised interest and commitment fee payment dates
accelerate payment by one month from April to March allowing a more timely payment of this City
obligation. Revision to Ordinance No. 2465. The revised reset date provides an additional
eleven months before a rate reset is required. Extending the rate lock period is considered
advantageous to the City. It also simplifies the internal tracking and accounting by Zions First
National Bank (the sole bond holder / lender) and is considered advantageous to them as well.
RECOMMENDATION
Council is being asked to approve the ordinance amending Ordinance No. 2464 and Ordinance
No. 2465 and to consider this item at the March 9- 2015 Committee of the Whole Council Meeting
and at the March 16, 2015 Regular Council Meeting.
ATTACHMENTS:
Draft ordinance.
31
32
AN ORDINANCE OF THE CITY COUNCIL OF THE CITY OF
TUKWILA, WASHINGTON, AMENDING ORDINANCE NO. 2464,
SECTION 4 (PART) AND SECTION 5, AND AMENDING EXHIBIT
A OF ORDINANCE NO. 2465, TO CONFORM DEBT SERVICE
PAYMENT DATES; AND PROVIDING FOR OTHER PROPERLY
RELATED MATTERS; PROVIDING FOR SEVERABILITY; AND
ESTABLISHING AN EFFECTIVE DATE.
WHEREAS, the City previously issued its Limited Tax General Obligation Bond
Anticipation Note, 2014 (the "Note ") pursuant to Ordinance No. 2464, and its Limited
Tax General Obligation Bonds, 2014 (the "Bonds ") pursuant to Ordinance No. 2465;
and
WHEREAS, this amendment is necessary to conform the debt service payment
dates set forth in Ordinance No. 2464 and Ordinance No. 2465, respectively, to the
dates specified at closing by the purchasers of the Note and the Bonds, respectively;
NOW, THEREFORE, THE CITY COUNCIL OF THE CITY OF TUKWILA,
WASHINGTON, HEREBY ORDAINS AS FOLLOWS:
Section 1. Ordinance No. 2464, Section 4, Amended. Except as amended by
this ordinance, all other provisions of Ordinance No. 2464 shall remain in full force and
effect and all actions taken at any time prior to the effective date of this ordinance,
which are consistent with Ordinance No. 2464 as so amended, are hereby ratified. and
confirmed in all respects. _
Section 4 of Ordinance No. 2464, subparagraphs B and C, are hereby amended to
read as set forth below. (Additions are double underlined and deletions are enclosed in
double parentheses and struck through.)
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Terms of the Note.
B. Interest. Each Draw shall bear interest at the Interest Rate selected by the
City from the Date of each Draw, which shall be computed on the basis of a year of 360
days for the actual number of days elapsed. The City Finance Director shall designate
the Fixed Rate or the applicable Variable Rate Period with respect to each Draw in the
Draw Request. So long as no Event of Default has occurred and is continuing, interest
shall accrue on each Draw at the applicable Interest Rate. Upon the occurrence of an
Event of Default and until such default is cured, the Bank may, at its option, impose the
Default Rate.
Interest on the outstanding principal amount of the Note will be paid quarterly,
beginning ((Ap 4))March 1, 2015, and each ((Ap 4))March 1, June 1, September 1 and
December 1 thereafter, to and including the Maturity Date. If the first day of a calendar
month is not a Business Day, the payment shall be due on the next succeeding
Business Day.
The City may elect to convert any Fixed Rate Draw to a Variable Rate as set forth
in the Line of Credit Agreement, and may convert any Variable Rate Draw to a different
Variable Rate Period or to a Fixed Rate at the expiration of any Variable Rate Period.
Unless the City affirmatively elects a new Variable Rate Period in writing received by the
Bank on or before 2:00 p.m. (Pacific Time) on the last Business Day of a Variable Rate
Period for a specific Draw, the Interest Rate for such Draw shall be renewed for a
successive Variable Rate Period of the same length as the expiring Variable Rate
Period. Notwithstanding the foregoing, the Finance Director may consent to different
terms in the Line of Credit Agreement regarding the Variable Rate Periods and indices
available and regarding conversion of interest rate modes, if she deems the terms in the
Line of Credit Agreement to be in the City's best interests.
C. Commitment Fee. The City agrees to pay a commitment fee of 0.50% on the
average daily balance of the unused portion of the commitment amount (i.e., the
maximum stated amount of the Note, less the sum of all Draws) calculated on the basis
of a 360 -day year and the actual days elapsed. The commitment fee shall be payable
quarterly in arrears on each interest payment date, commencing on ((Ap 4))March 1,
2015.
Section 2. Ordinance No. 2464, Section 5, Amended. Except as amended by
this ordinance, all other provisions of Ordinance No. 2464 shall remain in full force and
effect and all actions taken at any time prior to the effective date of this ordinance,
which are consistent with Ordinance No. 2464 as so amended, are hereby ratified and
confirmed in all respects.
Section 5 of Ordinance No. 2464 is hereby amended to read as set forth below.
(Additions are double underlined and deletions are enclosed in double parentheses and
struck through.)
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Term Out Provision. If, on the Maturity Date, the City is unable to pay the
principal of or interest on the Note then due and payable in full and no Event of Default
has occurred and is continuing, the Maturity Date shall be extended for a term of one
year, to December 1, 2018. This period shall be referred to as the "Term Out Period."
Interest on the outstanding principal amount shall accrue from and after December 1,
2017 at a rate equal to the Fixed Rate plus 2.0 %, calculated on the basis of a year of
360 days for the actual number of days elapsed. Interest and Principal shall be due and
payable in four approximately equal quarterly installments, on ((Apf4))March 1, 2018,
June 1, 2018, September 1, 2018 and December 1, 2018. The maximum term of the
Note issued under this ordinance shall not be extended beyond December 1, 2018
without written approval by the Bank accepted by the City Council.
Section 3. Exhibit A to Ordinance No. 2465 Amended. Except as amended by
this ordinance, all other provisions of Ordinance No. 2465 shall remain in full force and
effect and all actions taken at any time prior to the effective date of this amendatory
ordinance, which are consistent with Ordinance No. 2465 as so amended, are hereby
ratified and confirmed in all respects.
Exhibit A of Ordinance No. 2465 is hereby amended to read as set forth in Exhibit A
to this ordinance. (Additions are double underlined and deletions are enclosed in
double parentheses and struck through.)
Section 4. General Authorization and Ratification. The appropriate officers of
the City are severally authorized to take such actions and to execute such documents
as in their judgment may be necessary or desirable to carry out the transactions
contemplated in connection with this ordinance, and to do everything necessary for the
prompt delivery of the Bonds to the Purchaser and for the proper application, use and
investment of the proceeds of the Bonds. All actions taken prior to the effective date of
this ordinance in furtherance of the purposes described in this ordinance and not
inconsistent with the terms of this ordinance are ratified and confirmed in all respects.
Section 5. 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 6. Severability. The provisions of this ordinance are declared to be
separate and severable. If a court of competent jurisdiction, all appeals having been
exhausted or all appeal periods having run, finds any provision of this ordinance to be
invalid or unenforceable as to any person or circumstance, such offending provision
shall, if feasible, be deemed to be modified to be within the limits of enforceability or
validity. However, if the offending provision cannot be so modified, it shall be null and
void with respect to the particular person or circumstance, and all other provisions of
this ordinance in all other respects, and the offending provision with respect to all other
persons and all other circumstances, shall remain valid and enforceable.
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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 thereof this day of , 2015.
ATTEST /AUTH ENTICATED:
Christy O'Flaherty, MMC, City Clerk
APPROVED AS TO FORM BY:
Bond Counsel
Jim Haggerton, Mayor
Filed with the City Clerk:
Passed by the City Council:
Published:
Effective Date:
Ordinance Number:
Attachment: Exhibit A, Description of the Bonds
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(a)
(b)
(c)
(d)
(e)
Exhibit A
EXHIBIT A
DESCRIPTION OF THE BONDS
Principal Amount: $3,850,000
Purchase Price: $3,850,000 (par amount of the Bonds)
Interest Payment Dates: June 1 and December 1, commencing June 1, 2015.
Maturity and Interest Rates: The Bonds shall mature on the dates and bear interest at
the initial rates (computed on the basis of a 360 -day year of
twelve 30 -day months), as follows:
City of Tukwila, Washington
Limited Tax General Obligation Bonds, 2014 (Taxable)
Maturity
Principal
Interest
Maturity
(Dec 1)
Amount
Rate
(Dec 1)
2015
$141,000
0.85%
2021
2016
149,000
1.17
2022
2017
150,000
1.60
2023
2018
153,000
2.17
2024
2019
156,000
2.67
**
2020
160,000
3.26
2034
Principal Interest
Amount
Rate
$ 165,000
3.93%
172,000
4.32
179,000
4.63
187,000
4.86
2,238,000
2.85(')
(1) Commencing December((jaaeary)) 1, 2019, interest on those Bonds maturing
December 1, 2034, will be adjusted to the 5 -year Advance Fixed Bullet Rate, as quoted by
the Seattle Federal Loan Bank from time to time, divided by 0.65, which will remain in
effect through and including November 30((Desembheir 234)), 2024. Commencing
December 1, 2024(( da m mrit , 2525)), interest on those Bonds maturing December 1,
2034, will be adjusted to the 5 -year Advance Fixed Bullet Rate, as quoted by the Seattle
Federal Loan Bank from time to time, divided by 0.65, which will remain in effect through
and including November 30((D°�er 1)), 2029. Commencing December 1, 2029
(( )), interest on those Bonds maturing December 1, 2034, will be adjusted
to the 5 -year Advance Fixed Bullet Rate, as quoted by the Seattle Federal Loan Bank from
time to time, divided by 0.65, which will remain in effect through and including December 1,
2034.
Optional Redemption: The Bonds maturing on and after -December 1, 2020, are
subject to redemption in whole or in part on or after
December 1, 2019, without penalty at any time, upon 30 days
written notice to the Registered Owner(s) of the Bond(s) to be
redeemed.
A -1
37
(fl
Mandatory Redemption: The Bond due on December 1, 2034 will be paid in annual
principal installments, plus accrued interest, on December 1
in the years and amounts as follows:
Term Bonds Maturing 2034
Mandatory
Mandatory
Redemption
Redemption
Years
Amounts
2025
$197,000
2026
202,000
2027
208,000
2028
214,000
2029
220,000
2030
226,000
2031
233,000
2032
239,000
2033
246,000
2034*
253,000
*Maturity
38 A -2
CERTIFICATION
I, the undersigned, City Clerk of the City of Tukwila, Washington (the "City "), hereby
certify as follows:
1. The attached copy of Ordinance No. (the "Ordinance ") is a full, true and
correct copy of an ordinance duly passed at a regular meeting of the City Council of the
City held at the regular meeting place thereof on 2015, as that
ordinance appears on the minute book of the City.
2. The Ordinance will be in full force and effect five days after publication in the
City's official newspaper, which publication date is 12015.
3. A quorum of the members of the City Council was present throughout the
meeting and a majority of the members voted in the proper manner for the passage of
the Ordinance.
Dated: 12015.
CITY OF TUKWILA, WASHINGTON
Christy O'Flaherty, MMC, City Clerk
W
FIE
City of Tukwila
Jim Haggerton, Mayor
INFORMATIONAL MEMORANDUM
TO: Mayor Haggerton
Finance & Safety Committee
FROM: Peggy McCarthy, Finance Director
BY: Vicky Carlsen, Deputy Finance Director
DATE: February 25, 2015
SUBJECT: Remove Section 3.32.040 "Unbudgeted Equipment or Fixed Assets" from
Tukwila Municipal Code and Repeal Ordinance Nos. 2245, 2010, and 1817
ISSUE
Remove section 3.32.040 "Unbudgeted Equipment or Fixed Assets" from the Tukwila Municipal
Code (TMC) and repeal Ordinance Nos. 2245, 2010, and 1817.
BACKGROUND
In November 1997, City Council adopted Ordinance No. 1817 establishing section Chapter 3.32
Budget Provisions, which included section 3.32.040 "Unbudgeted Equipment or Fixed Asset ".
This section requires the approval of the Mayor and three affirmative votes of the respective
Council Committee to approve the purchase of unbudgeted capital equipment or fixed asset item,
including components or services of items related to capital equipment of fixed assets. Fixed
asset items were defined as costing at least $1,000 and having a useful life of at least two years.
Ordinance No. 2010, adopted in December 2002, changed the minimum limit for capital
equipment from $1,000 to $5,000.
Ordinance No. 2245 simply added section 3.32.050 "Emergency Procurement" to the chapter.
DISCUSSION
It is the City's responsibility to utilize taxpayers' dollars in the most effective and efficient way
possible while adhering to applicable laws and regulations. In order to ensure that taxpayers'
dollars are used appropriately, it is necessary for internal control processes and procedures to be
in place and that they are followed.
Section 3.32.030 "Bids" allows for the Mayor, when provided for in the budget, to call for bids on
public works projects or procure goods or professional services when the project or procurement
does not exceed $40,000. All purchases, whether budgeted or not, that are $40,000 or higher
require Council approval.
The control outlined in Section 3.32.030 "Bids" ensures that there is adequate oversight and
control for all major purchases. Additionally, internal control over purchasing is also included in
the City's Administrative Purchasing Policies. Section 3.32.040 "Unbudgeted Equipment or Fixed
Asset Items" is specific to only one type of purchase and only when it is not included in the current
adopted budget. With the exception of the lower dollar amount, Section 3.32.030 "Bids" covers
unbudgeted equipment and fixed asset items.
FIN
INFORMATIONAL MEMO
Page 2
Section 3.32.030 "Bids" provides appropriate control over large purchases; both budgeted and
unbudgeted. Control over expenditures extends to capital assets purchases and are considered
sufficient. Additionally, special treatment of capital asset purchases is not considered necessary
or adds value to the internal control process over purchasing.
Therefore, in an ongoing effort to streamline administrative policies, we are recommending that
section 3.32.040 " Unbudgeted Equipment or Fixed Assets" be removed from the TMC.
RECOMMENDATION
Council is being asked to approve the Ordinance to repeal Ordinance Nos. 2245, 2010, and 1817.
This item is scheduled for the March 9, 2015 Committee of the Whole, and March 16, 2015
Regular Council Meeting.
ATTACHMENTS
Ordinance to repeal Ordinance Nos. 2245, 2010, and 1817
Copy of Ordinance No. 2245
Copy of Ordinance No. 2010
Copy of Ordinance No. 1817
42 C: \Users\christy\AppData \Local \Microsoft \Windows \Temporary Intemet Files\Content.Outlook \H94XRZJM \Info Memo - TMC- Remove FA section.doa
AN ORDINANCE OF THE CITY COUNCIL OF THE CITY OF
TUKWILA, WASHINGTON; AMENDING REGULATIONS
RELATING TO UNBUDGETED CAPITAL EQUIPMENT;
REPEALING ORDINANCE NO. 2245, AS CODIFIED AT
TUKWILA MUNICIPAL CODE CHAPTER 3.32; PROVIDING
FOR SEVERABILITY; AND ESTABLISHING AN EFFECTIVE
DATE.
WHEREAS, Tukwila Municipal Code Section 3.32.040 requires that any unbudgeted
capital equipment or fixed asset item, including components and services of items, be
approved by the Mayor and three affirmative votes of the respective Council committee
assigned to the requesting City department; and
WHEREAS, it is not a requirement of state law to outline approval requirements in the
City's municipal code; and
WHEREAS, the City of Tukwila believes it is more appropriate for policies relating to
purchasing and approval for the purchase of unbudgeted capital equipment to be
uncodified; and
WHEREAS, controls over expenditures extend to capital asset purchases and are
sufficient, and
WHEREAS, special treatment of capital asset purchases is unnecessary and does not
add any additional internal control value;
NOW, THEREFORE, THE CITY COUNCIL OF THE CITY OF TUKWILA,
WASHINGTON, HEREBY ORDAINS AS FOLLOWS:
Section 1. TMC Chapter 3.32 Amended. Ordinance No. 2245, as codified at
Tukwila Municipal Code Chapter 3.32, "Budget Provisions," is hereby amended to read as
follows:
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3.32.010 Transfers
Pursuant to RCW 35A.33.120, transfers within a department or division of the
separate funds of the ann, ial biennial budget shall be by formal motion of the City Council.
3.32.020 Salary Increase
No salary shall be increased above the amount provided therefor in the annual
biennial budget and specified in the adopted salary plan of the City. Salaries may be
increased subsequent to salary plan changes formally approved by the City Council.
3.32.030 Bids — Procurement — Contracts
When provided for in the anal - biennial budget, the Mayor is authorized to call for
bids on public works projects or to procure goods or professional services when the
project- 4)f-procurement, or service, including change orders or amendments, does not
exceed $40,000 per calendar year.
3. 32.040 I (nbudgeted Equipment or Fixed Asset items.
--- of items, shall be approved by the MayeF and thFee affirmative votes of the
"Foxed asset" items
are defiRed as GG6tiRg at least $5,000 and haviRg a useful life of at least two yeaFs.
3.32.0540 Emergency Procurement
The Mayor or City Administrator is hereby authorized to waive competitive bidding
requirements in the event of an emergency, as defined by RCW 39.04.280(3). Such an
emergency will be declared in writing by the Mayor or City Administrator. The City Council
will meet within two weeks following the award of the contract to consider adoption of a
resolution certifying that the emergency situation existed and for approval of the
procurement.
Section 2. Repealer. Ordinance No. 2245, as codified at Tukwila Municipal Code
Chapter 3.32, "Budget Provisions," is hereby repealed.
Section 3. Corrections by City Clerk or Code Reviser. Upon approval of the
City Attorney, the City Clerk and the code reviser are authorized to make necessary
corrections to this ordinance, including the correction of clerical errors; references to
other local, state or federal laws, codes, rules, or regulations; or ordinance numbering
and section /subsection numbering.
Section 4. Severability. If any section, subsection, paragraph, sentence, clause or
phrase of this ordinance or its application to any person or situation should be held to be
invalid or unconstitutional for any reason by a court of competent jurisdiction, such
invalidity or unconstitutionality shall not affect the validity or constitutionality of the
remaining portions of this ordinance or its application to any other person or situation.
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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 12015.
ATTEST /AUTHENTICATED:
Christy O'Flaherty, MMC, City Clerk
APPROVED AS TO FORM BY:
Rachel B. Turpin, City Attorney
Jim Haggerton, Mayor
Filed with the City Clerk:
Passed by the City Council:
Published:
Effective Date:
Ordinance Number:
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m
2
c� 1908
City of Tukwila
Washington
Ordinance No. ,-), �t � r�
AN ORDINANCE OF THE CITY COUNCIL OF THE CITY OF TUKWILA,
WASHINGTON, AMENDING REGULATIONS REGARDING BID
PROCEDURES AND ADDING EMERGENCY PROCUREMENT
PROVISIONS; REPEALING ORDINANCE NOS. 2010 AND 1817, AS
CODIFIED AT TUKWILA MUNICIPAL CODE CHAPTER 3.32;
PROVIDING FOR SEVERABILITY; AND ESTABLISHING AN EFFECTIVE
DATE.
WHEREAS, the City of Tukwila seeks to establish an authorized level of
procurement which allows for effective and efficient operation of the City's business by
the Mayor and department directors; and
WHEREAS, the authorized level of purchasing by the Mayor has remained at the
same amount since 1997; and
WHEREAS, the City of Tukwila seeks to establish an emergency purchasing policy
consistent with State law;
NOW, THEREFORE, THE CITY COUNCIL OF THE CITY OF TUKWILA,
WASHINGTON, HEREBY ORDAINS AS FOLLOWS:
Section 1. Regulations Amended. Tukwila Municipal Code Chapter 3.32, "Budget
Provisions," is hereby amended to read as follows:
3.32.010 Transfers.
Pursuant to RCW 35A.33.120, transfers within a department or division of the
separate funds of the annual budget shall be by formal motion of the City Council.
3.32.020 Salary Increase.
No salary shall be increased above the amount provided therefor in the annual
budget and specified in the adopted salary plan of the City. Salaries may be increased
subsequent to salary plan changes formally approved by the City Council.
3.32.030 Bids.
When provided for in the annual budget, the Mayor is authorized to call for bids on
public works projects or procure goods or professional services when the project or
procurement, including change orders or amendments, does not exceed $40,000.
3.32.040 Unbudgeted Equipment or Fixed Asset Items.
Any unbudgeted capital equipment or fixed asset item, including components or
services of items, shall be approved by the Mayor and three affirmative votes of the
respective Council committee assigned to the requesting department. "Fixed asset"
items are defined as costing at least $5,000 and having a useful life of at least two years.
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47
3.32.050 Emergency Procurement.
The Mayor or City Administrator is hereby authorized to waive competitive
bidding requirements in the event of an emergency, as defined by RCW 39.04.280(3).
Such an emergency will be declared in writing by the Mayor or City Administrator. The
City Council will meet within two weeks following the award of the contract to
consider adoption of a resolution certifying that the emergency situation existed and for
approval of the procurement.
Section 2. Repealer. Ordinance Nos. 2010 and 1817, as codified at Tukwila
Municipal Code Chapter 3.32, "Budget Provisions," are hereby repealed.
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 and effect
five days after passage and publication as provided by law.
PASSED BY THE CITY COUNCIL OF THE CITY OF TUfWILA, WASHINGTON,
at a Regular Meeting thereof this ;:�O T)4 day of J ti -2009.
ATTEST /A 11A)
Christy O'Flaherty, CMC, City C e-rk
APPROVED AS M BY:
Of ' o the City At me
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EN
J
Ji aggerton, or
Filed with the City Clerk: _9 - 16 C�
Passed by the City Council:
Published:
Effective Date: 9 ,V- C
Ordinance Number.: ) q --,5
Page 2 of 2
JF�J'IA' �Yq
k :'
Repealed by 2245 ° Z
J i
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yA, ............. .'
1908
Ci ty of Tukwila
Washington
Ordinance No. o D /0
AN ORDINANCE OF THE CITY COUNCIL OF THE CITY OF
TUKWILA, WASHINGTON, AMENDING ORDINANCE NO.
1817, AS CODIFIED AT TUKWILA MUNICIPAL CODE 3.46,
TO INCREASE THE FIXED ASSET MINIMUM TO $5,000;
PROVIDING FOR SEVERABILITY; AND ESTABLISHING
AN EFFECTIVE DATE.
WHEREAS, the City Council desires to implement the new accounting reporting
requirements; and
WHEREAS, the City Council desires to assist in achieving this goal and wishes to
increase the minimum limit for capital equipment from $1,000 to $5,000;
NOW, THEREFORE, THE CITY COUNCIL OF THE CITY OF TUKWILA,
WASHINGTON, HEREBY ORDAINS AS FOLLOWS:
Section 1. Ordinance No. 1817, as codified at Tukwila Municipal Code Chapter 3.46.040,
is hereby amended to read as follows:
3.46.040 Unbudgeted equipment or fixed asset items. Any unbudgeted capital
equipment or fixed asset item, including components or services of items, shall be approved by
the Mayor and three affirmative votes of the respective Council committee assigned to the
- requesting department. "Fixed asset" items are defined as costing at least $5,000 and having a
useful life of at least two years.
Section 2. 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 3. 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 and effect five (5) days
after passage and publication as provided by law.
PASSED BY THE CITY COUPIC,IOF THE OF WASHINGTON, at a
Regular Meeting thereof this /t/D day of &I wd� " 2002.
Steven M. Mullet, Mayor
ATTEST/AUTHENTICATED:
Jpe E. Cantu, CMC, City Clerk
FILED WITH THE CITY CLERK: A;? - -F-
APPROVED AS TO FORM: PASSED BY THE CITY COUNCIL. -,/ /6 -Q
PUBLISHED: d
By EFFECTIVE DATE: --ZS- O
Offi e of the ' y Attorney ORDINANCE NO.: 0?0 /6
Fixed Asset Minimum.doc 11126102 1
49
50
i � Jiffy /
rte._ • �
City of Tukwila
Washington
Ordinance No. I g / 7
AN ORDINANCE OF THE CITY COUNCIL OF THE CITY
OF TUKWILA, WASHINGTON, PROVIDING FOR
TRANSFERS, SALARY INCREASES, BIDS, AND
UNBUDGETED EQUIPMENT OR FIXED ASSET ITEMS
AT CHAPTER 3.46 OF THE TUKWILA MUNICIPAL
CODE; REPEALING ORDINANCES 1319 AND 1554;
PROVIDING FOR SEVERABILITY; AND ESTABLISHING
AN EFFECTIVE DATE.
WHEREAS, the City Council desires to consolidate within one ordinance authority regarding
transfers, salary increases, bids, and unbudgeted equipment or fixed asset items; and
WHEREAS, the City Council desires to increase the minimum limit for capital equipment from
$500 to $1,000; and
WHEREAS, the City Council desires to clarify unbudgeted capital purchasing authority;
NOW, THEREFORE, THE CITY COUNCIL OF THE CITY OF TUKWILA,
WASHINGTON, HEREBY ORDAINS AS FOLLOWS:
Section 1. Tukwila Municipal Code Chapter 3.46, Budget Provisions, is hereby amended to read
as follows:
3.46.010 Transfers. Pursuant to RCW 35A.33.120, transfers within a department or division of
the separate funds of the annual budget shall be by formal motion of the City Council.
3.46.020 Salary Increase. No salary shall be increased above the amount provided therefor in
the annual budget and specified in the adopted salary plan of the City. Salaries may be increased
subsequent to salary plan changes formally approved by the City Council.
3.46.030 Bids. When provided for in the annual budget, the Mayor is authorized to call for bids
on public works projects or procure goods or professional services when the project or procurement does
not exceed $25,000.
3.46.040 Unbudgeted equipment or fixed asset items. Any unbudgeted capital equipment or
fixed asset item, including components or services of items, shall be approved by the Mayor and three
affirmative votes of the respective Council committee assigned to the requesting department. "Fixed
asset' items are defined as costing at least $1,000 and having a useful life of at least two years.
Section 2. Repealer. Ordinance Nos. 1319 and 1554 are hereby repealed.
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.
TRSFRETC.DOC 10130197 1
51
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 and effect five (5) days after passage and
publication as provided by law.
PASSED BY THE CITY COUNCIL OF ICITY OF TUKWILA,1 WASHINGTON, at a
Regular Meeting thereof this _-g 1--lAt day of 1997.
Jo .Rants, Mayor
ATTEST /AUTHENTICATED:
s
e E. Cantu, City Clerk
APPROVE12AS-T-9�FORM:
FILED WITH THI�OTY CLERK: /0/30/9 %
PASSED BY THE CITY COUNCIL:
PUBLISHED: /1/7 % 7
EFFECTIVE DA4E `< <;Z /c/ 7
ORDINANCE NO.: / / 7 l
TRSFRETC.DOC 10130197 2
52
TO:
FROM:
BY:
DATE:
SUBJECT
ISSUE
City of Tukwila
Jim Haggerton, Mayor
INFORMATIONAL MEMORANDUM
Mayor Haggerton
Finance & Safety Committee
Peggy McCarthy, Finance Director
Vicky Carlsen, Deputy Finance Director
February 25, 2015
Agreement to Extend Animal Services Interlocal Agreement through
December 31, 2017
Approve agreement to extend the current Animal Services Interlocal Agreement for King County
to continue to provide animal services for unincorporated King County and 25 contract cities
through December 31, 2017.
BACKGROUND
King County has been providing regional animal control services for several years. In 2010, the
County created a partnership with 26 cities. In 2012, 25 cities contracted with King County for a
3 year term, ending December 31, 2015. In June, 2012, the City approved and signed this
Agreement that remains in effect through the end of this year. The agreement allows for an
extension for an additional two -year term, ending December 31, 2017.
The program and services are supported by pet licensing and fees /fines as well as the general
fund of King County and many of the contracting cities. In 2013, program generated revenues
supported 49% of program expenses. The remaining 51 % of operating expenses were supported
by contributions from the County's general fund and payments from contract cities.
The cost allocation model assigns 80% of program expenses based on use (responses to calls,
shelter intakes, etc.) and 20% based on population to provide a correlation between the costs of
the program and the use of the program. Tukwila data compared to all contract cities and
unincorporated King County is as follows:
Tukwila
All Entities
2014 population
19,210
1.92% of total population
2013 calls
186
3.48% of total calls
2013 shelter intakes
210
4.92% of total shelter intakes
2013 license count
1,180
1.26% of total licenses
At the July 2014 Joint City County Collaboration (JC4) meeting, discussion was held as to whether
to extend the current contract by two years or begin the process to negotiate a new contract. The
County Executive supports the extension under the same terms and conditions and the cities that
were in attendance at the meeting expressed the desire to extend the contract as well.
On November 17, 2014, Council authorized the Mayor to sign a non - binding Indication of Interest
to extend the current Regional Animal Services Interlocal Agreement for 2 years. In order to
extend the existing agreement, all 25 contract cities needed to agree to the extension.
53
INFORMATIONAL MEMO
Page 2
DISCUSSION
In January, the City was notified that all 25 contract cities signed the non - binding Indication of
Interest to extend the existing contract.
In order to extend the existing interlocal agreement, the City Council will now need to authorize
the Mayor to sign the extension to the current Regional Animal Services Interlocal Agreement.
RECOMMENDATION
Council is being asked to authorize a two -year extension to the current Animal Control Interlocal
Agreement and consider this item at the March 9, 2015 Committee of the Whole meeting and
subsequent March 16, 2015 Regular Meeting.
ATTACHMENTS
Agreement to Extend Animal Control Services Interlocal Agreement through December 31, 2017.
54
AGREEMENT TO EXTEND
ANIMAL SERVICES INTERLOCAL AGREEMENT
THROUGH DECEMBER 31, 2017
This AGREEMENT is made and entered into by and between KING COUNTY, a
Washington municipal corporation and legal subdivision of the State of Washington (the "County ")
and the undersigned Cities ( "Contracting Cities ").
WHEREAS, the County and each Contracting City entered into an Interlocal Agreement
regarding the provision of animal control, sheltering and licensing services for the period of 2013
through 2015 ( "Interlocal Agreement "); and
WHEREAS, the Interlocal Agreement took effect on July 1, 2012 and remains in effect
through December 31, 2015, unless otherwise extended through December 31, 2017; and
WHEREAS, the Interlocal Agreement provides for a two -year extension of Term in
Subparagraph 4.b.; and
WHEREAS, Subparagraph 4.b, section i, states either Party may propose amendments to the
Agreement as a condition of an extension; and
WHEREAS, Subparagraph 4.b, section ii, states that nothing in this Agreement shall be
construed to compel either Party to agree to an extension or amendment of the Agreement, either on
the same or different terms; and
WHEREAS, Subparagraph 4.b, section iii, states that the County agrees to give serious
consideration to maintaining the various credits provided to the Contracting City under this
Agreement in any extension of the Agreement; and
WHEREAS, the County and Contracting Cities ( "the Parties ") wish to extend the Interlocal
Agreement through December 31, 2017, as contemplated within Section 4 of the Interlocal
Agreement;
NOW THEREFORE, in consideration of the promises, covenants and agreements contained
in the Interlocal Agreement, as extended, the Parties agree as follows:
1. The Interlocal Agreement shall remain in effect through December 31, 2017 under the
same terms and conditions and may not be terminated for convenience.
2. In order to maintain the same terms and conditions, dates within Interlocal Agreement
shall reflect the extended 2016 and 2017 period, as set forth in Attachment A.
3. The County may sign an agreement with additional cities for provision of animal services
prior to the expiration of the extended Interlocal Agreement, but only if the additional city
agreement will not increase the Contracting Cities' costs payable to the County under the
Interlocal Agreement.
City of Tukwila
January 14, 2015
55
4. The Parties agree that, in light of their decision to now extend the Interlocal Agreement
for an additional two year term as provided herein, procedures set forth in Section 4 of the
Interlocal Agreement for meeting to discuss the prospect of an extension, for proposing
amendments to the Interlocal Agreement during the extended term and for providing
notice of intent to extend the Interlocal Agreement are superfluous. The Parties
accordingly waive their rights to such procedures.
5. This Agreement to extend the Interlocal Agreement may be executed in counterparts by
each Contracting City and each such counterpart shall be deemed to be an original
instrument, but all such counterparts together shall constitute one instrument.
IN WITNESS WHEREOF, the Parties hereto have caused this Agreement to be executed
effective this day of , 2015.
King County
Dow Constantine
King County Executive
Date
Approved as to Form:
Deputy Prosecuting Attorney
Date
City of Tukwila
January 14, 2015
56
City of Tukwila
Jim Haggerton
Mayor, City of Tukwila
Date
Approved as to Form:
Tukwila City Attorney
Date
ATTACHMENT A
RASKC ILA Extension Dates
Section 1(d)
Definition of "Agreement" means this Animal Services
Interlocal Agreement for '^'15 2016 and 2017....
Section 4(e)
Limited Reopener and Termination: " If a countywide, voter
approved property tax levy for funding some or all of the
Animal Services program is proposed that would impose
new tax obligations before January 1, 2016 2018..."
Section 7(c)
ii — "The City may request licensing revenue support from
the County in 2014 and 201-5 2016 and 2017..."
- "...provision of licensing revenue support in 2014 and
2015 2016 and 2017..."
Exhibit A, Part II Shelter Services
"During '^''s2016 and 2017"
Exhibit C, Part 2
- Bullet #2
"(fixed at 2013 level, payable annually through 2015 2017)"
"(also fixed at a 2013 level, payable annually through 20IS
2017)"
- Bullet #3
"In 2014 and 201-5 2016 and 2017..."
".. Licensing Revenue Support Cities with a licensing
Revenue Target over $20,000 /year will be assured such
services in'^''s2016 and 2017"
- Bullet #4
"...of total New Regional Revenues, in 2014 nd 2015 2016
and 2017..."
- Bullet #5
"In Service Years 2014 and 2011-51-2016 and 2017..."
Exhibit C4 —Transition Funding
Credit, Shelter Credit, Estimated
new Regional Revenue
A. Transition Funding
"..these cities will receive credit at the level calculated for
Credit
2013 in the 2010 Agreement for Service Years '^'"�T 4
^ 241&2016 and 2017, ..."
B. Shelter Credit
"A total of $750,000 will be applied as a credit in each of the
.Service Years 2013 20IT2016 and 2017..."
Table 3 title
"Annual Shelter Credit Allocation — 2013 2015 2016 and
2017"
Exhibit C5 Licensing Revenue
"In 2014 and 201&2016 2016 and 2017..." and
Support (E)
"...Exhibit F with respect to all -3 service years (2016 and
2017)"
Exhibit C5 Licensing Revenue
"For Service Year 2015 2016 and 2017...."
Support, Table 2
Exhibit C -7
"...Licensing Revenue Support in Service Years 2014 -er
201 52016 or 2017..."
City of Tukwila
January 14, 2015
57
w
ATTACHMENT B
King County - Regional Animal Services — Contracting Cities
Beaux Arts
Maple Valley
Bellevue
Mercer Island
Black Diamond
Newcastle
Carnation
North Bend
Clyde Hill
Redmond
Covington
Sammamish
Duvall
SeaTac
Enumclaw
Shoreline
Issaquah
Snoqualmie
Kenmore
Tukwila
Kent
Woodinville
Kirkland
Yarrow Point
Lake Forest Park
City of Tukwila
January 14, 2015
.+e,
M-8