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Home My WebLink AboutCOW 2015-03-09 Item 4A - Ordinance - $6,250,000 Limited Tax General Obligation Bonds for Arterial StreetsCOUNCIL AGENDA SYNOPSIS I,tilials Ale ins Date Prepared by M 'or'' review Council review 03/ 09/15 PMc CATEGORY ❑ Discuthon Aftg Date 3/9/15 (,`- 03/16/15 PMc ❑ Public Hearing Aftg Dale ❑ Other Mtg Date CI Ordinance I .t,g Date 03/16/15 SPONSOR ❑ Ganda' fl Mayor ❑ 1.IR ❑ DCD /1 Finance ❑ Fire ❑ IT [] P &R ❑ Police ❑ Ptr SPONSOR'S The Council is being asked to approve an ordinance authorizing issuance of limited tax SUMMARY general obligation bonds not to exceed $6,250,000 RI 1'11:WED BY 1 COW Mtg. ❑ CA &P Cmte ® F &S Cmte ❑ Transportation Cmte 1 Utilities Cmte ❑ Arts Comm, ❑ Parks Comm. ❑ Planning Comm. DATE: 3/3/15 COMMITTEE CHAIR: HOUGARDY RECOMMENDATIONS: SPONSOR/ADMIN. CoMMrtTI.r. Finance De • artment ITEM INFORMATION ITEM No. 1 STAFF SPONSOR: PEGGY MCCARTHY ORIGINAL AGENDA DATE: 3/9/15 AGENDA ITEM TITLE 2015 LTGO Bond Issue CATEGORY ❑ Discuthon Aftg Date 3/9/15 ❑ Motion Mtg Date ❑ Resolution ,1 It$ Date ❑ Bid Award Aftg Dale ❑ Public Hearing Aftg Dale ❑ Other Mtg Date CI Ordinance I .t,g Date 03/16/15 SPONSOR ❑ Ganda' fl Mayor ❑ 1.IR ❑ DCD /1 Finance ❑ Fire ❑ IT [] P &R ❑ Police ❑ Ptr SPONSOR'S The Council is being asked to approve an ordinance authorizing issuance of limited tax SUMMARY general obligation bonds not to exceed $6,250,000 RI 1'11:WED BY 1 COW Mtg. ❑ CA &P Cmte ® F &S Cmte ❑ Transportation Cmte 1 Utilities Cmte ❑ Arts Comm, ❑ Parks Comm. ❑ Planning Comm. DATE: 3/3/15 COMMITTEE CHAIR: HOUGARDY RECOMMENDATIONS: SPONSOR/ADMIN. CoMMrtTI.r. Finance De • artment Unanimous Approval; Forward to Committee of the Whole COST IMPACT 1 FUND SOURCE EXPENDITURE CURT. REQUIRED AMOUNT BUDGETED APPROPRIATION REQUIRED $ $ Fund Source: Comments: MTG. DATE RECORD OF COUNCIL ACTION 03/9/15 3/16/15 MTG. DATE ATTACHMENTS 3/9/15 Informational Memorandum dated 2/25/15 Ordinance in Draft Form, with attachments Minutes from the Finance and Safety Committee meeting of 3/3/15 3/16/15 1 TO: City of Tukwila Jim Haggerton, Mayor INFORMATIONAL MEMORANDUM 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 (Clip page XXVf). 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 XXVf, 11 and 14. 3 FT 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. W: Word Processing \Ordinances \LTGO Bonds -Road construction projects 2 -23 -15 PM:bjs Page 1 of 14 5 (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. (j) "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. (I) "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. W: Word Processing \ordinances \LTGO Bonds -Road construction projects 2 -23 -15 PM:bjs 6 Page 2 of 14 (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. W: Word Processing \Ordinances \LTGO Bonds -Road construction projects 2 -23 -15 PM:bjs Page 3 of 14 7 (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. W: Word Processing \Ordinances \LTGO Bonds -Road construction projects 2 -23 -15 PM:bjs 8 Page 4 of 14 (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 1'/2% 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. W: Word Processing \Ordinances \LTGO Bonds -Road construction projects 2 -23 -15 PM:bjs Page 5 of 14 9 (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. W: Word Processing \Ordinances \LTGO Bonds -Road construction projects 2 -23 -15 PM:bjs 10 Page 6 of 14 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. W: Word Processing \Ordinances \LTGO Bonds -Road construction projects 2 -23 -15 PM:bjs Page 7 of 14 11 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 W: Word Processing \Ordinances \LTGO Bonds -Road construction projects 2 -23 -15 PM:bjs 12 Page 8 of 14 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 Tess 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 W: Word Processing \Ordinances \LTGO Bonds -Road construction projects 2 -23 -15 PM:bjs Page 9 of 14 13 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 W: Word Processing \Ordinances \LTGO Bonds -Road construction projects 2 -23 -15 PM:bjs 14 Page 10 of 14 (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. W: Word Processing \Ordinances \LTGO Bonds -Road construction projects 2 -23 -15 PM:bjs Page 11 of 14 15 (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. W: Word Processing \Ordinances \LTGO Bonds -Road construction projects 2 -23 -15 PM:bjs 16 Page 12 of 14 (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. W: Word Processing \Ordinances \LTGO Bonds -Road construction projects 2 -23 -15 PM:bjs Page 13 of 14 17 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 Jim Haggerton, Mayor Filed with the City Clerk: Passed by the City Council: Published: Effective Date: Ordinance Number: Attachments: Exhibit A — Parameters for Final Terms (Description of the Bonds) Exhibit B — Form of Undertaking to Provide Continuing Disclosure W: Word Processing \Ordinances \LTGO Bonds -Road construction projects 2 -23 -15 PM:bjs 18 Page 14 of 14 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 19 20 (g) Redemption Rights. (h) Price. 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% 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. 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. A -2 Exhibit B EXHIBIT B 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; modifications to rights of holders of the Bonds, if material; (7) B -1 21 22 (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 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,-ithe 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 23 24 (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. 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 25 OPERATING TRANSFERS - DEBT SERVICE DEBT SERVICE BUDGET PROJECTIONS TOTAL 2015 -2020 Use of Debt Proceeds 2013 2014 2015 2016 2017 2018 . 2019 2020 EXISTING DEBT: LTGO 2003 Golf course club house $ 715 $ - 5 - 5 - 5 - 5 - $ - $ - $ - Early payoff 2,665 LTGO 2003 Community center and Fire station 491 488 - - - - - - - Refunding #53 LTGO 2008 Oty Hall Annex, 6300 bldg, and 737 812 811 811 809 809 811 - 4,051 Refunding Urban revitalization - Tukwila Village L it, 11x11 111r,• ,- , C,. I.LI:, .- tr,3 .I,5 ir,.l 1, . I ■ 1 I -, :lot 1 1.1 14111, 10,:, 4-li 3111 SCORE 2009 South County Corretional Entity, SCORE Jail facility 431 431 - 428 427 428 428 428 2,139 �k:IedLIivd debt !-,k r.,,_, 130 1 ..:.rm,tilejB tThltriI iii,,•i. 1M •t . 1 ;117 - LTGO 2010 Southcenter Parkway Extension, emergency management 518 521 524 524 519 513 505 496 3,080 I4,..,,,11.• ai, r ;. 1 -,.i. 1 -...: 01 . _ 1'81 .. _ _ ,•I Valley Com 2010 Refunding Valley Communications Center operating facility 241 229 229 - - - - - 229 LTGO 2011 Arterial street portion of 2003 bond - 168 548 546 549 552 549 549 545 3,290 Refunding South bark bridge transaction LTGO 2012 Tukwila Metropolitan Park District 113 113 113 113 113 113 113 113 679 Existing debt $ 6,079 $ 3,142 $ 2,223 $2,424 $ 2,420 $ 2,412 $ 2,406 $ 1,582 $ 13,468 PLANNED DEBT: LTGO 2014 118 Redevelopment $ 3,850 313 313 287 287 287 287 1,774 2015 Credit line 11B Redevelopment 2,250 LTGO 2015 Interurban Ave South 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 511,700 $ - $ - $ 537 $ 761 $ 735 $ 735 $ 735 $ 735 5 4,238 PROPOSED DEBT: LTGO 2016 42nd $ 4,400 117 352 352 352 352 1,525 53rd - - - - - - Proposed debt $ 4,400 $ - $ - $ - 5 117 5 352 $ 352 $ 352 $ 352 $ 1,525 TOTAL. Estimate / Proj[ctions $ 6,079 $ 3,142 $ 2,760 53,303 $ 3,507 $ 3,499 53,493 $ 2,669 $1.9,231 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 XXVI 26 CITY OF TUKWILA CAPITAL PROJECT SUMMARY 2015 to 2020 PROJECT: Boeing Access Rd over BNRR Bridge Rehabilitation Project No. 99410408 DESCRIPTION: Rehabilitate the existing bridge with a 340' long concrete or steel bridge structure. It will be 110' wide curb to 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. 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. COMMENT: Bridge will be rehabilitated in phases to allow continued traffic use. Federal bridge grant of $9,745,600 requires a 20% local match. A bond issue will be used for the City match. FINANCIAL Through Estimated in $000's 2013 2014 2015 2016 2017 2018 2019 2020 BEYOND TOTAL EXPENSES • Project Location '5 LA Design 198 867 288 a 5 i R L .y y 1 s4.i _l it. iL 1— !1:12 s' &i• 22a 1,_ v , 1. s may. 1 ,353 Land (RAM 100 100 Const. Mgmt. 563 561 1,124 Construction 4,850 4,850 9,700 TOTAL EXPENSES 198 967 5,701 5,411 0 0 0 0 0 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 5,701 5,411 0 0 0 0 0 12,277 2015 - 2020 Capital Improvement Program 11 27 • Project Location '5 LA ilk os It. " a 5 i R L .y y 1 s4.i _l it. iL 1— !1:12 s' &i• 22a 1,_ v , 1. s may. 2015 - 2020 Capital Improvement Program 11 27 CITY OF TUKWILA CAPITAL PROJECT SUMMARY 2015 to 2020 PROJECT: Interurban Ave S (5 143 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 $3 -465m in 2014/15. FINANCIAL Through Estimated 2013 2014 2015 2016 2017 2018 2019 2020 BEYOND TOTAL EXPENSES Project Location! - ` . P 5 �r 2. . r �� w,4 �., ; •; still �L'�� Design 835 86 • • •. ofit- - ^ V T4 921 Land (RAM 209 g 47$ t s, a i GIS ^'''''"a'"" - 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 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 28 14 Project Location! - ` . P 5 �r 2. . r �� w,4 �., ; •; still �L'�� 1e S 1„ Sl • • •. ofit- - ^ V T4 5.160 S[ C. it g 47$ t s, a i GIS ^'''''"a'"" - f � s,uosl �� i (-'{ 2015 - 2020 Capital improvement Program 28 14 2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 2026 2027 2028 2029 2030 2031 2032 2033 2034 2035 2036 2037 2038 2039 Tolals SCHEDULE OF PRIOR, EXISTING, AND FUTURE ANTICIPATED LONG -TERM DEBT SERVICE - Revised Section 1 64155519 General 4 1 Debt Section 2 Future Ml1Suded G.nsrd Oblig.lon Debt Section 3 • Cohen t Column 2 Column a Column 4 Column 5 Coham 5 Column 7 Column. Column 9 Column-10 Column 11 C.la.n 12 Column 1a Cramer, 14 Column 15 column 16 Column 17 C.5015119 0010120 Fund205 Fund 210 Fund 211 Fund216 Fund 217 Total Entting Fund 201 LTGO Bonds SpaeW Assessment Fuld 267 LTGO Bads Fuld 288 LTGO Bonds. Ftmd 209 LTGO Bands, LTGO Returning 1700 Retwdng. Fed 212 LTG_ Bads. Fled 214 LTGO 2010 LTGO R.twdng, LTGO Robins/rig, Fed 218 LTGO, 2013 Total Basting GO Debt New D� - hlatutban New Deb!- BAR Bye New Debt - Urban Renewal New Debt - 42nd Ave Aw S Total Fduu Debt Future Debt and neture General Bonds 2000 2003 2003 2008 2009 2310 2011 Ave S gatIon Obi :getion Debt 56.600900 $382,900 510.000000 52, 551 -600 56277500 $4.195.000 S6: 180000 36,898 800 56.670000 51065:000 54925000 51..000.600 53,660:600 525110:000 56.100.000 54.400.000 Ongnal bores • OmigFd issue Chloral Issue Original Issue Original Issue Odgiul Issue Orgiul Issue Oegnal Issue Ong.ld Issue Myna! tsue Original Issue Ongnal issue Potential Issue Pot°06ai Issue Potential true Potential Issue 515385 26,875 834943 - • - - - - 1.373,603 - - 1873 609 516 100 - 833,623 245,882 _ _ - _ _ 1,595.604 - 1.535604 513.973 834.223 250595 - - - - 1,598790 - - - • 1,598790 516,173 - 834 148 250,963 49871 - - - - - 1651,155 - - - - - 1551155 - 832,873 250 067 272.026 489676 - - - 1,844.642. 1.844542 - - 830,535' 250812 272026 489900 - - - - - 1.843.273 - - - - 1-843.273 832.105 250,877 272026 486,900 - 1941,908 . 1,841,908 - - 832.305 250,839 272,026 488.500 - - - - - - 1843670 - - - 1943:670 831905 250.479 272,026 489,500 . . . 1,843,310 • - - 1,843,310 • 488.948 190104 533323 489,900 324,800 - - - - 2,027.075 - - - - 1927.075 - - 193.200 585949 489700 816,000 - 199,222 230.186 - 2514,257 - - - 2514257 - - - - 5841381 488,900 815400 - 586225 171,790 - - 2647.196 - - - - 2947196 - - - 718.375 487900 809,000 91,791 584.425 232,910 166,964 - 3090,965 - - - - - 3090;965 - - - - 3979788 490,500 737000 430.157 584.075 204,880 167,975 113,130 6.107504 - - - - 6107504 _ _ • - - 488,250 812000 429,815 583.425 229280 _547.675. 3.203.574 - - - - 3203,574 - - - 811,300 428,183 585,650 228,800 545,825 113130 2712,887 122,000 87.500 313.000 - 529,000- 3235700 - - 811,100 427,960 585,450 - 548,675 113.130 2,486315 245,000 175,000 313,000 117,533 850.333 3335.448 • - - 809,900 427,461 581.190 - 552.,900 113.130 1483,961 , 245900 175,000 287406 352.000 1,059,000 4.542,089 - - - - 809.100 428.298 575.152 - 549,250 119.130 2,474920 245.000 175,000 287 000 352,000 1.059000 2;632.920 - - 810,900 427,973 567,307 - 548,700 113130 2.468910 245,000 175,000 287.000 352000 1.059,000 3,527,010 _ • - 427.869 558.182, - 545.300 113,130 1.646481 294,000 175560 - .287.000. 352000. 1..058,004 23033637 • - - - - - - 426239 552,520 - 546900 113.130 1,638.188 245,000 175900 287600 352,000 1,059000 2897188 - - - - - - 427532 543;175 - 551,500 113115 1635322 245000 175000 287000 352.000 1.059.000 2694222 - - • - - 427,379 533,018 545,900 - 1,506,297 245.000 175.000 267.000 352.000 1.059.000 2565297 • - - - 426,885 527050 - 953,935 245000 175000 287000• 352000 1.0590 0 2,912,955 - - - - - - 426.356 - - - - 426,356 245.000 175000 287.000 352000 1,059000 1,465,356 - - - - - - • 426.130 - - 426,130 245.000 175000 287.000. 352.000 1.059.000 1485:130 . - - - - . • 425896 - - - - 425896' 245000 175000 287.000 352,000 1,059.000 1,484,896 - _ _ - 425.636 - 425,636 245:000 175000 287,000 352.000 1059000 1,484;6361 425,335 - 425,335' 245000 175,000 287,000 352,000 1.059 000 1:484.335 - - - - - - 424 -791 - - - - 424,791 245,000 175000 287.000 34,000 1.059,000 1.489.791 - - - - - - - 424.762 - - 424762. 245,000 175.000 287.000 352,000 1,059.000 1,483762 - - - - - - - 424201 - 424201 245.000 175:000 287.000 352,000 1.059:000 1483201 - - - _ 423,889 - 423.889 245900 175.000 287,000 151,000 1,059900 1,482,889 • - - - - - - 423.792. - . - 423.792 2454000 175000 287,000 352,000 1,059,000 1.492,7922 - - - - - - - 423.485 • - - - 423485 122500 87,500 - 352,000 562,000 983485 4r, 9.50. 422950 _ 176.000 176,000 596950 • - - - - 422561 - - - 422561 - - - - - 422561 _ - _ _ - 422284 - - 422284 • - _ - - 422284 • • - - - 423,085 - • • 422.085 - - - 422.0851 $ 2.058.631 5 2E875 5 7.984.406 8 2.383918 $ 7212,318 5 5,3799226 9 0366500 5 11591.685 S 8,146962 5 1297.846 S 5,816.364 $ 1131285 9 61,395916 $ 4,900.000 $ 3.500900 5 5792.000 5 6981533 5 21.173333 S 92568349 2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 2026 2027 2028 2029 2030 2031 2032 2033 2034 2035 2036 2037 2038 2039 cD 2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 2028 2027 2028 2029 2030 2031 2032 2033 2034 2035 2036 2037 2038 2039 Torah 2015 -2016 Biennial Budget, Page 268 SCHEDULE OF PRIOR, EXISTING, AND FUTURE ANTICIPATED LONG -TERM DEBT SERVICE Section 1 6tbtig General Obligation Debt Section 2 FLbow Mdcipated amoral Obligation Debt Section 3 Column 1 Column 2 Column 3 Column 4 Column 5 Column 6 Column 7 Column 6 Goblet 9 Column 10 Column tt Column 12 Column 13 Column 14 Column 15 Cobtmn 16 Column 17 Column 19 Coburn 20 Fund 201 Fund 205 Special Fund 207 Fund 208 Fund 209 Fund 210 MO Fund 211 LTG° Fund 212 Fund 214 Fund 216 LTGO Fund 217 LTGO Fund 218 Total Eds6ng New Debt- New Debt- New Debt- New Debt - Totes Total Existing and Future LTGO Bards Pssessment LTGO Bonds,. 1999 L7G0 Bonds, 2000 LTGO Bonds Rebndng, Refunding, LTGO Bonds- 2009 L7G02010 Refunding, Refunding, LTGO, 2013 GO Debt Interurban xes BAR Bndge Urban Renewal 42nd he S General Bonds l -2003 2003 2008 2010 2011 Future Future Debl Obligation Debt 56,000,000 1362,900 ♦110,000,000 52,551,600 56277,500 54,195,000 16180.000 55070000 51,065,000 54620,000 51,000,000 53, 100, 00052500,000 56106000 54,400600 Original issue Otigbal 4 Issue Original bsue Original Issue Original Issue Q ipind Issue Original Issue 566986 Original issue Original Issue Original bane Original Issue Original issue Petunia] Issue Potential issue Potential Issue Potential Issue 512,385 26675 834,343 - - - - - - - - 1,373,603 - - • - - 1,373.603 516,100 - 833,623 245.882 - - - - - - - - 1,595,604 - - - - - 1,595,604 513,973 - 834,223 250,595 - - - - - - - - 1598,790 - - - - 1,599,790 516.173 - 834.148 250,963 49.871 - - - - - • - 1,651,155 - - - • - 1,651,155 832073 250,067 272.026 489,676 - - _ - - 1 - 1,844,642 • - - _ - 1,844,642 • - 830,535 250,812 272.026 489,900 - - - - - - 1,843,273 - - - - - 1,843273 832105 250.877 272.026 486.900 - - - - - - 1,841,908 - - - - - 1,841908 - - 832,305 250,839 272,026 488500 - - - - - - 1.843670 - - - - - 1,843,670 - - 831,305 250,479 272.026 489,500 - - - - - - 1,843,310 - - - - - 1,843.310 - - 488,948 190.104 533,323 489,900 324,800 - - - - - 2,027,075 - - - - - 2,027,075 • - 193,200 585,949 489.700 816,000 - 199,222 230,186 - - 2,514,257 - - - - - 2,514,257 • - • - 584.881 488,900 815,400 586,225 171,790 - - 2,647,196 - - - - - 2,647,196 - - - - 718,375 487,500 809,000 91,791 584,425 232,910 166.964 - 3090965 - - - - - 3,090,965 - - - 3,379,788 490,500 737.000 430,157 584.075 204,880 167,975 113,130 6,107,504 - - - - - 6,107,504 • - . - 498250 812.000 429.815 583, 425 229,280 547,675 113,130 3,203,614 - - - - 3 .203574 - - - - - 811.300 428.183 585,650 228.800 545.825 113.130 2.712,887 124,000 100,000 . 313.000 - 537.000 3249,897 - - - - - - 811,100 427260 585,450 - 548,675 113.130 2,486,315 248,000 200,000 313000 117.333 978,333 3. 364,648 - - - - 809.900 427461 581.190 552,300 113,130 ' 2483,981 248,000 200,000 287000 352,000 1,087,000 3,570,1181 - - - - 809.100 428288 575,152 - 549,250 113,130 2.474920 248,000 200,000 287.000 352,000 1. 087,000 3,561.920 - - 810,900 427.973 567,307 548700 113,130 2,468,010 248,000 200000 287.000 352,000 1.087.000 3,555,010 - - - - - - 427669. 558.182 - 545.300 113130 1,844481 248.000 200.000 287.000 352,000 1087.000`. 2.731481 - - - - - - - 426239 552,520 - 546,300 113.130 1638,188 248,000 200,000 287,000 352,000 1.087,000 2725,188 • - - - - - • 427,532 543.175 - 551,500 113.115 1635.322 248,000 200.000 287,000 352,000 1,087,000 2,722,322 • - - - - - - 427,379 533,018 - 545,900 - 1,506,297 248.000 200,000 287000 352.000 1.087,000 2.593297 - - - - - - - 426,885 527.050 - - - 953,935 248,000 200,000 287.000 352.000 1,087.000 2040,935 • 426,356 - - - - 426,356 248,000 200,000 267,000 352,000 1.087,000 1,513,356 - - - - - - - 426,130 - - - - 426,130 248,000 200.,000 287,000 352.000 1,087,000 1513,130 - - • - - - - 425,895 - - - - 425,896 248,000 200,000 287,000 352,000 1,087.000 1,512,896 - _ - _ 425,636 _ - - - 425,636 248,000 200000 287,000 352,000 1.087,000 1,512,636 - - _ 425,335 - - - - 425,335 248,000 200,000 297,000 352,000 1,087.000 1,512,335 • - - - - - - 424.791 - - - - 424,791 248,000 200,000 267,000 352.000 1.087.000 1,511.791 - - - - - - - 424762 - - - 424,762 248,000 200.000 287.000 352,000 1,087,000 1511,762 - - - - - - - 424,201 - - - - 424201 248,000 200,000 287,000 352.000 1,087.000 1,511,201 - • - - - - - 423,889 - - - 423,989 248.000 200,000 287,000 352.000 1.087.000 1 51008 - • - - 423792 - - • - 423,792 248,000 200.000 287.000 352.000 1.087,000 1510792 - - - - - - - 423485 - - - - 423,485 124.000 100.000 - 352.000 576,000 999.485 _ _ _ - _ 422,950 _ - _ _ 422,950 - - - 176,000 176,000 598,950 _ - - - - - - 422,561 - - - - 422,561 - - • - - 422,561 - _ - 422284 _ - - - 422,264 - _ _ - - 422,284 _ _ _ .. - 422685 - _ - _ 422,085 - _ - - - 422,085 52,058631 5 26675 S 7,984,406 52.383.818 57112,318 55,379226 18,366500 111,591,685 18.146.062 S1197,846_S 5,816,364 51. 131285 561.395,016 14,960,000 54,000,000- 5 5,792000 56.981,333 521.733.333 S 83,128,349. 2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 2026 2027 2028 2029 2030 2031 2032 2033 2034 2035 2036 2037 2038 2039 FINANCE AND SAFETY COMMITTEE Meeting Minutes March 3, 2015 — 5:30 p.m_,: Hazelnut Conference Room City of Tukwila Finance and Safety Committee PRESENT Councilmembers: Kathy Hougardy, Chair; Joe Duffie, Kate Kruller (Absent: De'Sean Quinn) Staff: Peggy McCarthy. Vicky Carlsen, Brandon Miles, Gail Labanara, Laurel Humphrey Guests: Susan Musselman and Duncan Brown, Public Financial Management CALL TO ORDER: Committee Chair Hougardy called the meeting to order at 5:30 p.m. PRESENTATIONS No presentations. 11. BUSINESS AGENDA Consensus existed to consider item 2b as the first item of business. A. Authorization to Spend Lodging Tax Funds for Street Pole Banners Staff is seeking Council approval of a $6,500 expenditure in lodging tax funds for the manufacture and installation of street pole banners around the Starfire Sports Complex. The banners will be installed along Fort Dent Way and Interurban Avenue to promote the second Sounders team, "52," whose games are expected to attract many visitors. As required by law the City's Lodging Tax Advisory Committee considered the funding request at its February 20 meeting and recommended that the Council approve the request. Committee Chair Hougardy asked for updated attendance statistics when they are available. UNANIMOUS APPROVAL. FORWARD TO MARCH 9, 2015 COMMITTEE OF THE WHOLE. B. Ordinance: $6,250,000 Limited Tax General Obligation (LTGO) Bonds_for Arterial Streets Staff is seeking Council approval of an ordinance that would authorize the issuance of up to $6.25 million in limited tax general obligation bonds for the Boeing Access Bridge retrofit project and the Interurban Avenue Improvement project. The 2015 -2020 CIP shows the City's share of costs for these projects as $6.3 million and total anticipated bonding as $5.6 million. Annual debt service for this bond issue has been budgeted at $448 thousand, and the current estimate is $420,000. The bond issue will fund the majority of the City's share of costs and the annual debt service is expected to be less than that shown in the adopted budget and CIP. The Committee requested that staff update the City's "Schedule of Prior, Existing, and Future Anticipated Long -Term Debt Service' to reflect this action. UNANIMOUS APPROVAL. FORWARD TO MARCH 9, 2015 COMMITTEE OF THE WHOLE. C. Ordinance: Debt Service Payment Dates Staff is seeking Council approval of an ordinance that would amend Ordinances 2464 and 2465 to conform the debt service payment dates stated therein to the dates specified at closing by the purchasers of the Note and the Bonds referenced therein. The amendment to Ordinance 2464, issuance of the Limited Tax General Obligation Bond Anticipation Note, 2014, would accelerate payment from April to March. The amendment to Ordinance 2465, issuance of the Limited Tax General Obligation Bonds, 2014, would provide an addition eleven months before a rate reset is required which is an advantage to the City. UNANIMOUS APPROVAL FORWARD TO MARCH 9, 2015 COMMITTEE OF THE WHOLE. 33