HomeMy WebLinkAboutFIN 2017-11-21 COMPLETE AGENDA PACKETCity of Tukwila
Finance Committee
o Verna Seal, Chair
O Kathy Hougardy
O Thomas McLeod
AGENDA
Distribution:
V. Seal
K. Hougardy
T. McLeod
D. Robertson
Mayor Ekberg
D. Cline
C. O'Flaherty
L. Humphrey
TUESDAY, NOVEMBER 21, 2017 — 5:30 PM
HAZELNUT CONFERENCE ROOM
(At east entrance of City Hall)
Item
Recommended Action
Page
1. PRESENTATION(S)
2. BUSINESS AGENDA
a. A technology upgrade for the Emergency Management
a. Committee decision.
Pg.1
Emergency Operations Center.
Marty Grisham, Emergency Manager
b. Parks and Fire impact fees:
b. Forward to 11/27 C.O.W.
Pg.3
(1) An ordinance updating parks impact fees.
and 12/4 Regular Mtg.
(2) An ordinance updating fire impact fees.
(3) An ordinance amending the 2014 PROS Plan (Parks,
Recreation and Open Space Plan).
(4) A resolution amending the 2017-2022 Financial Planning
Model and the Capital Improvement Program (CIP).
Peggy McCarthy, Finance Director
c. An ordinance regarding financing for the Public Safety Plan
c. Forward to 11/27 C.O.W.
Pg.37
Public Works shops facility.
and 12/4 Regular Mtg.
Peggy McCarthy, Finance Director
d. Commercial parking tax legislation:
d. Forward to 11/27 C.O.W.
Pg.77
(1) An ordinance regarding commercial parking tax regulations.
and 12/4 Regular Mtg.
(2) A resolution adopting a fee schedule.
Sherry Wright, Senior Fiscal Coordinator
e. A resolution adopting a City of Tukwila equity policy.
e. Forward to 11/27 C.O.W.
Pg.93
Mia Navarro, Community Engagement Manager
and 12/4 Consent Agenda.
f. A resolution regarding non -represented employees' salary
f. Forward to 11/27 C.O.W.
Pg.101
compensation 2018.
and 12/4 Regular Mtg.
Stephanie Brown, Human Resources Director
g. An enterprise license agreement with Esri for GIS mapping
g. Forward to 12/4 Consent
Pg.117
software.
Agenda.
Joseph Todd, Technology & Innovation Services Director
3. ANNOUNCEMENTS
4. MISCELLANEOUS
Next Scheduled Meeting: Tuesday, December 5, 2017
S The City of Tukwila strives to accommodate individuals with disabilities.
Please contact the City Clerk's Office at 206-433-1800 (TukwilaCityClerk@TukwilaWA.gov) for assistance.
TO:
City of Tukwila
INFORMATIONAL MEMORANDUM
Mayor Ekberg
Finance Committee
FROM: Joseph Todd Director of Technology Information Services
Martin F. Grisham Emergency Manager
DATE: November 9, 2017
SUBJECT: Capital Purchase for Committee Approval
ISSUE
Allan Ekberg, Mayor
Seeking approval for a capital expenditure of technology equipment in the Emergency
Operations Center (EOC) at Fire Station 51.
BACKGROUND
The EOC needed a control center for all of the technology equipment. In May 2017,
Technology Information Services (TIS) and Emergency Management (EM) partnered to install
the technology updates.
At the time, we did not secure approval for a "capital expenditure" because none of the
individual pieces of this work were over $5000. It was later determined by Finance staff that the
process for capital purchases should be followed. While the purchases have been made, we
are coming before the Committee to acquire the necessary approvals to ensure the greatest
adherence to the City's process.
DISCUSSION
The total cost for the equipment is $13,933.64 and was paid for out of Fire operational budgets.
RECOMMENDATION
Per City Policy, unbudgeted capital items over $5,000 require approval by the designated
Council Committee. The Finance Committee is being asked to approve the capital expenditure
of $13,933.64 for the Fire Department EOC technology equipment.
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City of Tukwila
Allan Ekberg, Mayor
INFORMATIONAL MEMORANDUM
TO: Finance Committee
FROM: Peggy McCarthy, Finance Director
CC: Mayor Ekberg
DATE: November 15, 2017
SUBJECT: Update Fire and Park Impact Fees
ISSUE
Approve the following impact fee legislation:
1.an ordinance updating the fire impact fees
2.an ordinance updating the park impact fees
3.an ordinance amending the Park, Recreation and Open Space (PROS) Plan
4.a resolution amending the Capital Improvement Plan (CIP)
BACKGROUND
Fire and park impact fees were enacted by the City in 2008 and have not been updated since that
time. To ensure growth continues to pay for growth, the fee methodology, the level of service and the
supporting statistics and data have been reviewed and updated.
DISCUSSION
The fee calculations reflect expected growth over the next ten years. The fire impact fee is based on
the estimated replacement cost of existing facilities on a per fire call or incident basis. This
replacement cost per incident is then translated into a cost per residential unit based on the historical
call experience for each unit type — single family or multifamily. The replacement cost per incident is
also translated into a replacement cost per 1000 square feet of commercial development based on
the historical call experience for each land use type — office, retail or industrial.
The park impact fee is based on the identified capital needs (the planned projects) from growth on a
new service population per capita basis — comprising the expected new residents and employees.
The capital needs cost per capita is then translated into a per housing unit cost or per 1000 square
feet cost for residential housing units and commercial development respectively.
An ordinance amending the PROS Plan is needed because the parks level of service as stated in the
adopted PROS Plan will be revised through the impact fee update. A resolution amending the CIP is
needed because the impact fee eligible projects as stated in the adopted CIP will be revised through
the impact fee update.
RECOMMENDATION
The Council is being asked to approve the ordinances and resolution and consider this item at the
November 27, 2017 Committee of the Whole meeting and subsequent December 4, 2017 Regular
Meeting.
ATTACHMENTS
-Draft fire impact fee ordinance.
- Draft park impact fee ordinance
- Draft Parks, Recreation and Open Space amendment ordinance
- Draft Capital Improvement Plan amendment resolution
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AN ORDINANCE OF THE CITY COUNCIL OF THE CITY OF
TUKWILA, WASHINGTON, REPEALING ORDINANCE NOS.
2486 AND 2365, AS CODIFIED IN TUKWILA MUNICIPAL
CODE CHAPTER 16.26; REPEALING ORDINANCE NO. 2521
§4, 5 AND 6; REENACTING TMC CHAPTER 16.26, "'FIRE
IMPACT FEES," TO AMEND THE PROCESS FOR IMPOSING
AND ADMINISTERING FIRE IMPACT FEES TO BETTER
ADDRESS THE NATURE OF DEVELOPMENT ACTIVITY IN
TUKWILA; ADDING REGULATIONS RELATING TO ANNUAL
FIRE IMPACT FEE UPDATES; PROVIDING FOR
SEVERABILITY; AND ESTABLISHING AN EFFECTIVE DATE.
WHEREAS, the City Council adopted Ordinance No. 2365 on March 5, 2012;
Ordinance No. 2486 on October 19, 2015; and Ordinance No. 2521 on December 5, 2016,
all related to impact fees; and
WHEREAS, the City may periodically update its impact fee schedules to reflect
changes in the cost of completing planned improvements and the fair share contribution
applicable to new growth; and
WHEREAS, on November 27, 2017, the Tukwila City Council, following adequate
public notice, held a public hearing on the draft ordinance;
NOW, THEREFORE, THE CITY COUNCIL OF THE CITY OF TUKWILA,
WASHINGTON, HEREBY ORDAINS AS FOLLOWS:
Section 1. Repealer. Ordinance Nos. 2486 and 2365 are hereby repealed in their
entirety.
Section 2. Repealer. Ordinance No. 2521, §4, 5 and 6 is hereby repealed; these
sections were codified as follows:
TMC Section 16.26.030, "Definitions"
TMC Section 16.26.120, "Exemptions"
TMC Section 16.26.125, "Residential Impact Fee Deferral"
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Section 3. TMC Chapter 16.26 Reenacted. Tukwila Municipal Code (TMC) Chapter
16.26 is hereby reenacted to read as follows:
CHAPTER 16.26
FIRE IMPACT FEES
Sections:
16.26.010 Authority and Purpose
16.26.020 Findings
16.26.030 Definitions
16.26.040 Fire Impact Fee Assessment
16.26.050 Use of Fire Impact Fees
16.26.060 Fire Impact Fee Capital Facilities Plan
16.26.070 Fire Impact Fee Formula
16.26.080 Annual Fire Impact Fee Updates
16.26.090 Individual Projects Fire Impact Fee Adjustments
16.26.095 Fire Impact Fec Deferral
16.26.100 Credits
16.26.110 Appeals
16.26.120 Exemptions
16.26.125 Residential Impact Fee Deferral
16.26.130 Refunds
16.26.140 Authority Unimpaired
Section 4. TMC Section 16.26.010 is hereby reenacted to read as follows:
16.26.010 Authority and Purpose
A. Authority. The City of Tukwila's impact fee financing program has been
developed pursuant to the City of Tukwila's policy powers, the Growth Management Act
as codified in Chapter 36.70A of the Revised Code of Washington (RCW).
B. Purpose. The purpose of the financing plan is to:
1. Develop a program consistent with Tukwila's Fire Department Capital
Facilities Plan and the Capital Improvement Program for joint public and private financing
of fire protection services necessitated in whole or in part by development within the City
of Tukwila;
2. Ensure adequate levels of public fire protection and service are consistent
with the current level of service standards;
3. Create a mechanism to charge and collect fees to ensure that development
bears its proportionate share of the capital costs of public fire protection facilities
necessitated by development; and
4. Ensure fair collection and administration of such fire impact fees.
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Section 5. TMC Section 16.26.020 is hereby reenacted to read as follows:
16.26.020 Findings
The City Council finds and determines that growth and development in the City create
additional demand and need for public fire protection facilities in the City, and the City
Council finds that growth and development should pay its proportionate share of the costs
of the facilities needed to serve the growth and development in the City. Therefore,
pursuant to RCW 36.70A and RCW 82.02.050 through 82.02.100, which authorize the
City to impose and collect impact fees to fund public facilities that serve growth, the City
Council adopts this ordinance to impose fire protection impact fees for fire protection
services. It is the Council's intent that the provisions of this ordinance be liberally
construed in establishing the fire impact fee program.
Section 6. TMC Section 16.26.030 is hereby reenacted to read as follows:
16.26.030 Definitions
Terms or words not defined herein shall be defined pursuant to RCW 82.02.090 when
given their usual and customary meaning. For the purposes of this ordinance, unless the
context or subject matter clearly requires otherwise, the words or phrases defined in this
section shall have the following meanings:
1. "Accessory residential structure" means a structure that is incidental and
subordinate to the principal residence on the property and is physically detached to the
principal residence, but does not include accessory dwelling units. For example, a
detached garage or storage shed for garden tools are considered accessory residential
structures.
2. "Building permit" means an official document or certification of the City of
Tukwila issued by the City's building official which authorizes the construction, alteration,
enlargement, conversion, reconstruction, remodeling, rehabilitation, erection, placement,
demolition, moving, or repair of a building or structure.
3. "City" means the City of Tukwila, Washington, County of King.
4. "Development activity" means any construction, reconstruction, or
expansion of a building, structure, or use, or any changes in use of a building or structure,
or any changes in the use of land, requiring development approval.
5. "Development approval" means any written authorization from the City,
which authorizes the commencement of the "development activity."
6. "Encumber" means to reserve, set aside, or earmark the fire impact fees in
order to pay for commitments, contractual obligations, or other liabilities incurred for the
provision of fire protective services.
7. "Fee payer" is a person, corporation, partnership, an incorporated
association or governmental agency, municipality, or similar entity commencing a land
development activity that requires a building permit and creates a demand for additional
fire capital facilities.
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8. "Fire protection facilities" means all publicly owned apparatus and
buildings within the City that are used for fire protection and/or emergency response and
aid.
9. "Impact fee" means the payment of money imposed by the City on
development activity pursuant to this ordinance as a condition of granting development
approval in order to pay for the fire facilities needed to serve growth and development
that is a proportionate share of the cost of fire capital facilities used for facilities that
reasonably benefit development. Impact fees do not include reasonable permit fees,
application fees, administrative fees for collecting and handling fire impact fees, or the
cost of reviewing independent fee calculations.
10. "Low-income housing" means housing where monthly costs, including
utilities other than telephone, do not exceed are no greater than 30% of the resident's
household monthly income and where household monthly income must be is 80% or less
of the King County Median family income adjusted for family size as reported by the U.S.
Department of Housing and Urban Development.
11. "Owner" means the owner of record of real property, as found in the records
of King County, Washington, or a person with an unrestricted written option to purchase
property; provided, that if the real property is being purchased under a recorded real
estate contract, the purchaser shall be considered the owner of the property.
12. "Proportionate share" means that portion of the cost for fire facility
improvements that are reasonably related to the service demands and needs of
development.
Section 7. TMC Section 16.26.040 is hereby reenacted to read as follows:
16.26.040 Fire Impact Fee Assessment
A. The City shall collect fire impact fees from applicants seeking development
approvals from the City for any development activity in the City for which building permits
are required effective January 1, 2009, consistent with the provisions of this ordinance.
B. Fire impact fees shall be assessed at the time of a technically -complete building
permit application that complies with the City's zoning ordinances and building and
development codes. Fire impact fees shall be collected from the fee payer at the time the
building permit is issued, - - - - - -
Section 16.26.095.
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C. Except if otherwise exempt or deferred, the City shall not issue the required
building permit unless or until the fire impact fees are paid.
Section 8. TMC Section 16.26.050 is hereby reenacted to read as follows:
16.26.050 Use of Fire Impact Fees
A. Pursuant to this ordinance, fire impact fees shall be used for fire facilities that will
reasonably benefit growth and development, and only for fire protection facilities
addressed by the City's Capital Facilities Element of the Comprehensive Plan.
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B. Fees shall not be used to make up deficiencies in City facilities serving an
existing development.
C. Fees shall not be used for maintenance and operations, including personnel.
D. Fire impact fees shall be used for, but not limited to, land acquisition, site
improvements, engineering and architectural services, permitting, financing,
administrative expenses and applicable mitigation costs, and capital equipment
pertaining to fire protection facilities.
E. Fire impact fees may also be used to recoup public improvement costs incurred
by the City to the extent that growth and development will be served by the previously
constructed improvement.
F. In the event bonds or similar debt instruments are or have been issued for fire
facility improvements, impact fees may be used to pay the principal on such bonds
Section 9. TMC Section 16.26.060 is hereby reenacted to read as follows:
16.26.060 Fire Impact Fee Capital Facilities Plan
In order to collect fire impact fees, the City must first adopt a Fire Capital Facilities Plan
as an element of the City's Comprehensive Plan. The City's Capital Facilities Plan for fire
protection services shall consist of the following elements:
1. The City's capacity over the next six years, based on an inventory of the
City's fire facilities both existing and under construction;
2. The forecast of future needs for fire facilities based upon the City's
population projections;
3. A six-year financial plan component, updated as necessary, to maintain at
least a six-year forecast for financing needed within projected funding levels;
4. Application of the formula set forth in this ordinance based upon the
information in the Capital Facilities Plan; and
5. City Council Action. No new or revised impact fee shall be effective until
adopted by the City Council following a duly advertised public hearing to consider the
City's Capital Facilities Plan or plan update, except for fees adjusted through the annual
update process outlined in TMC Section 16.26.080.
Section 10. TMC Section 16.26.070 is hereby reenacted, thereby eliminating Figure
16-1, "Tukwila Fire Impact Fees, 2008;" and Figure 16-2, "Fire Department Capital Facilities
List," and shall read as follows:
16.26.070 Fire Impact Fee Formula.
A. The impact fee formula is based on the assumptions found in Figure 16 1, 2008
Tukwila Fire Impact Fees, and Figure 16 2, Tukwila Fire Department Capital Facilities
List, "Tukwila Fire and Parks Impact Fees Rate Study, 2017," Exhibit A attached to the
ordinance and by this reference fully incorporated herein. A fee schedule is codified as
Figure 16-1, Fee Schedule, attached hereto as Exhibit B.
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B. Each development shall mitigate its impacts on the City's fire protection facilities
by payment of a fee that is based on the type of land use and square footage of the
development, and proportionate to the cost of the fire protection facility improvements
necessary to serve the needs of growth. For residential development, fee amount is
based on number of units; for commercial development, fee amount is based on square
footage of the development.
C. Applications for a change of use shall receive credit based on the existing use.
This credit is calculated by deducting the fee amount of the existing use from the fee of
the proposed use.
Section 11. TMC Section 16.26.080, "Annual Fire Impact Fee Updates," is hereby
established to read as follows:
16.26.080 Annual Fire Impact Fee Updates
Fire impact fee rates shall be updated annually using the following procedures:
1. The Fire Chief shall use the Construction Cost Index for Seattle (June -June)
published by the Engineering News Record to calculate annual inflation adjustments in
the impact fee rates. The fire impact fees shall not be adjusted for inflation should the
index remain unchanged.
2. The impact fee rates, as updated annually per TMC Section 16.26.080(1),
shall be effective January 1, 2019, and on January 1 of each year thereafter, and a copy
shall be provided to the City Council.
Section 12. TMC Section 16.26.090 is hereby reenacted to read as follows:
16.26.988090 Individual Project Fire Impact Fee Adjustments
A. The City may adjust a fire impact fee at the time the fee is imposed in order to
consider unusual circumstances in specific cases to ensure that impact fees are imposed
fairly.
B. In calculating the fee imposed on a particular development, the City shall permit
consideration of studies and data submitted by a developer in order to adjust the amount
of the fee. The developer shall submit an independent fee calculation study to the Fire
Chief who shall review the study to determine that the study:
1. Is based on accepted impact fee assessment practices and methodologies;
2. Uses acceptable data sources and the data used is comparable with the
uses and intensities planned for the proposed development activity;
3. Complies with the applicable state laws governing impact fees;
4. Is prepared and documented by professionals who are mutually agreeable
to the City and the developer and who are qualified in their respective fields; and
5. Shows the basis upon which the independent fee calculation was made.
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C. In reviewing the study, the Fire Chief may require the developer to submit
additional or different documentation. If an acceptable study is presented, the Fire Chief
may adjust the fee for the particular development activity. The Fire Chief shall consider
the documentation submitted by the applicant, but is not required to accept such
documentation that the Chief reasonably deems to be inaccurate or unreliable.
D. A developer requesting an adjustment or independent fee calculation may pay
the impact fees imposed by this ordinance in order to obtain a building permit while the
City determines whether to partially reimburse the developer by making an adjustment or
by accepting the independent fee calculation.
Section 13. TMC Section 16.26.100 is hereby reenacted to read as follows:
16.26.100 Credits
In computing the fee applicable to a given development, credit shall be given for the fair
market value measured at the time of dedication, for any dedication of land for
improvements to, or new construction of, any fire protection facilities that are identified in
the Capital Facilities Element and that are required by the City as a condition of approving
the development activity.
Section 14. TMC Section 16.26.110 is hereby reenacted to read as follows:
16.26.400110 Appeals
A. Any fee payer may pay the impact fees imposed by this ordinance under protest
in order to obtain a building permit.
B. Appeals regarding fire impact fees imposed on any development activity may
only be submitted by the fee payer of the property where such development activity will
occur. No appeal shall be permitted unless and until the impact fee at issue has been
paid.
C. Determinations by the City staff with respect to the applicability of fire impact fees
to a given development activity, or the availability of a credit, can be appealed to the City's
Hearing Examiner pursuant to this section.
D. An appeal shall be filed within 10 working days of payment of the impact fees
under protest or within 10 working days of the City's issuance of a written determination
of a credit or exemption decision by filing with the City Clerk a notice of appeal giving the
reasons for the appeal and paying the accompanying appeal fee as set forth in the
existing fee schedule for land use decisions.
Section 15. TMC Section 16.26.120 is hereby reenacted to read as follows:
16.26.120 Exemptions.
A. The fire impact fees are generated from the formula for calculating the fees as
set forth in this chapter. The amount of the impact fees is determined by the information
contained in the adopted fire department master plan and related documents, as
appended to the City's Comprehensive Plan. All development activity located within the
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City shall be charged a fire impact fee; provided, that the following exemptions shall apply.
B. The following shall be exempt from fire impact fees:
1. Replacement of a structure with a new structure having the same use, at the
same site, and with the same gross floor area, when such replacement is within 12
months of demolition or destruction of the previous structure.
2. Alteration, expansion, or remodeling of an existing dwelling or structure
where no new units are created and the use is not changed.
3. Construction of an accessory residential structure.
4. Miscellaneous improvements including, but not limited to, fences, walls,
swimming pools, and signs that do not create an increase in demand for fire services.
5. Demolition of or moving an existing structure within the City from one site to
another.
6. Fire impact fees for the construction of low-income housing may be reduced
at the discretion of the Fire Chief when requested by the property owner in writing prior
to permit submittal and subject to the following criteria:
a. The property owner must Ssubmittal of a fiscal impact analysis of how a
reduction in impact fees for the project would contribute to the creation of low-income
housing; and
Eb- The developer property owner must record a covenant per RCW
82.02.060(3) that prohibits using the property for any purpose other than for low-income
housing at the original income limits for a period of at least 10 years. At a minimum, the
covenant must address price restrictions and household income limits for the low-income
housing, and that if the property is converted to a use other than low income housing
within 10 years, the property owner must pay the City the applicable impact fees in effect
at the time of conversion.
c. Should the property owner satisfy the criteria in TMC Section
16.26.120.B.6., a and b, and the Fire Chief determines a fee reduction is in the best
interest of the City, the fees will be reduced, based on the following table:
b. Fcc reduction table.
Unit Size
Affordability Target 1
Fee Reduction
2 or more bedrooms
80% 2
40%
2 or more bedrooms
60% 2
60%
Any size
50% 2
80%
1 — Units to be sold or rented to a person or household whose monthly
housing costs, including utilities other than telephone, do not exceed
30% of the household's monthly income.
2 — Percentage of King County Median family income adjusted for family
size as reported by the U.S. Department of Housing and Urban
Development.
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7. Change of Use. A development permit for a change of use that has less
impact than the existing use shall not be assessed a fire impact fee.
8. A fee payer required to pay for system improvements pursuant to RCW
43.21C.060 shall not be required to pay an impact fee for the same improvements under
this ordinance.
9. A fee payer installing a residential fire sprinkler system in a single-family
home shall not be required to pay the fire operations portion of the impact fee. The
exempted fire operations impact fee shall not include the proportionate share related to
the delivery of emergency medical services.
Section 16. TMC Section 16.26.125 is hereby reenacted to read as follows:
16.26.125 Residential Impact Fee Deferral
fee deferral process for single family residontial construction in order to promote
economic recovery in the construction industry.
-BA. Applicability.
1. The provisions of this chaptersection shall apply to all impact fees
established and adopted by the City pursuant to Chapter 82.02 RCW, including impact
fees for fire facilities assessed under Tukwila Municipal Code Chapter 16.26.
2. Subject to the limitations imposed in the Tukwila Municipal Code, the
provisions of this chaptersection shall apply to all building permit applications for single-
family detached and single-family attached residential construction. For the purposes of
this chaptersection, an "applicant" includes an entity that controls the named applicant, is
controlled by the named applicant, or is under common control with the named applicant.
GB. Impact Fee Deferral.
1. Deferral Request Authorized. Applicants for single-family attached or single
family detached residential building permits may request to defer payment of required
impact fees until the sooner of:
a. final inspection; or
b. the closing of the first sale of the property occurring after the issuance
of the applicable building permit;
which request shall be granted so long as the requirements of this chapter
section are satisfied.
2. Method of Request. A request for impact fee deferral shall be declared
submitted at the time of preliminary plat application (for platted development) or building
permit application (for non -platted development) in writing on a form or forms provided by
the City, along with payment of the applicable application or permit fees.
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3. Calculation of Impact Fees. The amount of impact fees to be deferred under
this chaptersection shall be determined as of the date the request for deferral is submitted.
gC. Deferral Term. The term of an impact fee deferral granted under this
chaptersection may not exceed 18 months from the date the building permit is issued
("Deferral Term"). If the condition triggering payment of the deferred impact fees does not
occur prior to the expiration of the Deferral Term, then full payment of the impact fees
shall be due on the last date of the Deferral Term.
D. Deferred Impact Fee Lien.
1. Applicant's Duty to Record Lien. An applicant requesting a deferral under
this chapter section must grant and record a deferred impact fee lien, in an amount equal
to the deferred impact fees, against the property in favor of the City in accordance with
the requirements of RCW 82.02.050(3)(c).
2. Satisfaction of Lien. Upon receipt of final payment of all deferred impact fees
for the property, the City shall execute a release of deferred impact fee lien for the
property. The property owner at the time of the release is responsible, at his or her own
expense, for recording the lien release.
E. Limitation on Deferrals. Each applicant for a single-family residential
construction permit, in accordance with his or her contractor registration number or other
unique identification number, is entitled to annually receive deferrals for the first 20 single-
family residential construction building permits.
identification number, per year.
16.26.095 Fire Impact Fcc Deferral
Urban Center Transit Oriented Development (TUC TOD) zoning district, fee deferrals of
following criteria are met:
1. The property owner must submit a tel
application clgarly depicting the project for which the fee deferra
agreement will apply.
be submitted to the City no later than December 31, 2016.
TOD zoning district per Figure 18 16, District Map, in Title 18 of the Tukwila Municipal
Code.
4. The project must include at least 100 residential units and at least 50 percent
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by the property owner. Provisions may include, but arc not
subject property, letter of credit and/or surety bond.
imited to, a lien against
app ds under TMC Section 16.26.100.
requests including, but not limited to, the ability of the property owner to satisfy the
e AKA
issuance. The property owner shall make 8 equal, annual installment payments to the
City, with the first payment due to the City no later than 36 months after issuance of the
to the end of the 10 y ar deferral term.
building permit is issued (or closest date thereof). Interest shall be compounded annually
and shall begin to accrue upon issuance of the building permit.
E. The fire impact fee deferral agreement may be consolidated with any agreements
to defer park, transportation, or building permit fees as outlined in TMC Chapters 9.48
Council.
Section 17. TMC Section 16.26.130 is hereby reenacted to read as follows:
16.26.148130 Refunds
A. If the City fails to expend or encumber the impact fees within 10 years from the
date the fees were paid, unless extraordinary, compelling reasons exist for fees to be held
longer than 10 years, the current owner of the property on which the impact fees were
paid may receive a refund of such fees. Such extraordinary or compelling reasons shall
be identified in written findings by the City Council.
B. The City shall notify potential claimants by first class mail that they are entitled to
a refund. In determining whether impact fees have been expended or encumbered,
impact fees shall be considered expended or encumbered on a first -in, first -out basis.
C. Owners seeking a refund must submit a written request for a refund of the fees
to the City within one year of the date the right to claim a refund arises or notice is given,
whichever comes later.
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D. Any impact fees for which no application has been made within the one-year
period shall be retained by the City and expended on appropriate fire facilities.
E. Refunds of impact fees shall include any interest earned on the impact fees by
the City.
Section 18. TMC Section 16.26.140 is hereby reenacted to read as follows:
16.26.140 Authority Unimpaired
Nothing in this ordinance shall preclude the City from requiring the fee payer to mitigate
adverse environmental effects of a specific development pursuant to the State
Environmental Policy Act, Chapters 43.21C RCW and/or Chapter 58.17 RCW, governing
plats and subdivisions, provided that the exercise of this authority is consistent with
Chapters 43.21C and 82.02 RCW.
Section 19. 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 20. 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 21. 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
January 1, 2018.
PASSED BY THE CITY COUNCIL OF THE CITY OF TUKWILA, WASHINGTON, at
a Regular Meeting thereof this day of , 2017.
ATTEST/AUTHENTICATED:
Christy O'Flaherty, MMC, City Clerk
APPROVED AS TO FORM BY:
Rachel B. Turpin, City Attorney
Allan Ekberg, Mayor
Filed with the City Clerk:
Passed by the City Council:
Published:
Effective Date:
Ordinance Number:
Attachments: Exhibit A — Tukwila Fire and Parks Impact Fees Rate Study, 2017
Exhibit B — Fee Schedule
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EXHIBIT A
Tukwila Fire and Parks Impact Fees Rate Study, 2017
17
18
MHIT'
AN ORDINANCE OF THE CITY COUNCIL OF THE CITY OF
TUKWILA, WASHINGTON, REPEALING ORDINANCE NOS.
2485 AND 2366, AS CODIFIED IN TUKWILA MUNICIPAL
CODE CHAPTER 16.28; REPEALING ORDINANCE NO. 2521
§7, 8 AND 9; REENACTING TMC CHAPTER 16.28, "PARKS
IMPACT FEES," TO AMEND THE PROCESS FOR IMPOSING
AND ADMINISTERING PARKS IMPACT FEES TO BETTER
ADDRESS THE NATURE OF DEVELOPMENT ACTIVITY IN
TUKWILA; ADDING REGULATIONS RELATING TO ANNUAL
PARKS IMPACT FEE UPDATES; PROVIDING FOR
SEVERABILITY; AND ESTABLISHING AN EFFECTIVE DATE.
WHEREAS, the City Council adopted Ordinance No. 2366 on March 5, 2012;
Ordinance No. 2485 on October 19, 2015; and Ordinance No. 2521 on December 5, 2016,
all related to impact fees; and
WHEREAS the City may periodically update its impact fee schedules to reflect
changes in the cost of completing planned improvements and the fair share contribution
applicable to new growth; and
WHEREAS, on November 27, 2017, the Tukwila City Council, following adequate
public notice, held a public hearing on the draft ordinance;
NOW, THEREFORE, THE CITY COUNCIL OF THE CITY OF TUKWILA,
WASHINGTON, HEREBY ORDAINS AS FOLLOWS:
Section 1. Repealer. Ordinance Nos. 2485 and 2366 are hereby repealed in their
entirety.
Section 2. Repealer. Ordinance No. 2521, §7, 8 and 9 is hereby repealed, these
sections were codified as follows:
TMC Section 16.28.030, "Definitions"
TMC Section 16.28.120, "Exemptions"
TMC Section 16.28.125, "Residential Impact Fee Deferral"
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Section 3. TMC Chapter 16.28 Reenacted. Tukwila Municipal Code (TMC) Chapter
16.28 is hereby reenacted to read as follows:
CHAPTER 16.28
PARKS IMPACT FEES
Sections:
16.28.010 Authority and Purpose
16.28.020 Findings
16.28.030 Definitions
16.28.040 Parks Impact Fee Assessment
16.28.050 Use of Parks Impact Fees
16.28.060 Parks Impact Fee Capital Facilities Plan
16.28.070 Parks Impact Fee Formula
16.28.080 Annual Parks Impact Fee Updates
16.28.090 Individual Projects Parks Impact Fee Adjustments
16.28.095 Parks Impact Fcc Dcfcrral
16.28.100 Credits
16.28.110 Appeals
16.28.120 Exemptions
16.28.125 Residential Impact Fee Deferral
16.28.130 Refunds
16.28.140 Authority Unimpaired
Section 4. TMC Section 16.28.010 is hereby reenacted to read as follows:
16.28.010 Authority and Purpose
A. Authority. The City of Tukwila's impact fee financing program has been
developed pursuant to the City of Tukwila's policy powers, the Growth Management Act
as codified in Chapter 36.70A of the Revised Code of Washington (RCW).
B Purpose. The purpose of the financing plan is to:
1. Develop a program consistent with Tukwila's Parks and Recreation
Department Capital Facilities Plan for joint public and private financing of public parks
facilities and services necessitated in whole or in part by development within the City of
Tukwila;
2. Create a mechanism to charge and collect fees to ensure that development
bears its proportionate share of the capital costs of public parks facilities necessitated by
development; and
3. Ensure fair collection and administration of such parks impact fees.
Section 5. TMC Section 16.28.020 is hereby reenacted to read as follows:
16.28.020 Findings
The City Council finds and determines that growth and development in the City create
additional demand and need for public parks facilities in the City, and the City Council
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finds that growth and development should pay its proportionate share of the costs of the
facilities needed to serve the growth and development in the City. Therefore, pursuant to
RCW 36.70A and RCW 82.02.050 through 82.02.100, which authorize the City to impose
and collect impact fees to fund public facilities that serve growth, the City Council adopts
this ordinance to impose parks impact fees for parks services. It is the Council's intent
that the provisions of this ordinance be liberally construed in establishing the parks impact
fee program.
Section 6. TMC Section 16.28.030 is hereby reenacted to read as follows:
16.28.030 Definitions
Terms or words not defined herein shall be defined pursuant to RCW 82.02.090 when
given their usual and customary meaning. For the purposes of this ordinance, unless the
context or subject matter clearly requires otherwise, the words or phrases defined in this
section shall have the following meanings:
1. "Accessory residential structure" means a structure that is incidental and
subordinate to the principal residence on the property and is physically detached to the
principal residence, but does not include accessory dwelling units. For example, a
detached garage or storage shed for garden tools are considered accessory residential
structures.
2. "Building permit" means an official document or certification of the City of
Tukwila issued by the City's building official which authorizes the construction, alteration,
enlargement, conversion, reconstruction, remodeling, rehabilitation, erection, placement,
demolition, moving, or repair of a building or structure.
3. "City" means the City of Tukwila, Washington, County of King.
4. "Development activity" means any construction, reconstruction, or
expansion of a building, structure, or use, or any changes in use of a building or structure,
or any changes in the use of land, requiring development approval.
5. "Development approval" means any written authorization from the City,
which authorizes the commencement of the "development activity."
6. "Encumber" means to reserve, set aside, or earmark the parks impact fees
in order to pay for commitments, contractual obligations, or other liabilities incurred for
the provision of parks services.
7. "Fee payer" is a person, corporation, partnership, an incorporated
association or governmental agency, municipality, or similar entity commencing a land
development activity that requires a building permit and creates a demand for additional
parks capital facilities.
8. "Impact fee" means the payment of money imposed by the City on
development activity pursuant to this ordinance as a condition of granting development
approval in order to pay for the parks facilities needed to serve growth and development
that is a proportionate share of the cost of parks capital facilities used for facilities that
reasonably benefit development. Impact fees do not include reasonable permit fees,
application fees, administrative fees for collecting and handling parks impact fees, or the
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cost of reviewing independent fee calculations.
9. "Low-income housing" means housing where monthly costs, including
utilities other than telephone, do not exceed are no greater than 30% of the resident's
household monthly income and where household monthly income must be is 80% or less
of the King County Median family income adjusted for family size as reported by the U.S.
Department of Housing and Urban Development.
10. "Owner" means the owner of record of real property, as found in the records
of King County, Washington, or a person with an unrestricted written option to purchase
property; provided, that if the real property is being purchased under a recorded real
estate contract, the purchaser shall be considered the owner of the property.
11. "Parks facilities" means those capital facilities identified as park and
recreational facilities in the City's Capital Facilities Plan.
12. "Proportionate share" means that portion of the cost for parks facility
improvements that are reasonably related to the service demands and needs of
development.
Section 7. TMC Section 16.28.040 is hereby reenacted to read as follows:
16.28.040 Parks Impact Fee Assessment
A. The City shall collect parks impact fees from applicants seeking development
approvals from the City for any development activity in the City for which building permits
are required, effective January 1, 2009, consistent with the provisions of this ordinance.
B. Parks impact fees shall be assessed at the time of a technically -complete
building permit application that complies with the City's zoning ordinances and building
and development codes. Parks impact fees shall be collected from the fee payer at the
time the building permit is issued, unless a fee deferral agreement is executed pursuant
to TMC Section 16.26.095.
C. Except if otherwise exempt or deferred, the City shall not issue the required
building permit unless or until the parks impact fees are paid.
Section 8. TMC Section 16.28.050 is hereby reenacted to read as follows:
16.28.050 Use of Parks Impact Fees
A. Pursuant to this ordinance, parks impact fees shall be used for parks facilities
that will reasonably benefit growth and development, and only for park facilities addressed
by the City's Capital Facilities Element of the Comprehensive Plan.
B. Fees shall not be used to make up deficiencies in City facilities serving an
existing development.
C. Fees shall not be used for maintenance and operations, including personnel.
D. Parks impact fees shall be used for but not limited to land acquisition, site
improvements, engineering and architectural services, permitting, financing,
administrative expenses and applicable mitigation costs, and capital equipment
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pertaining to parks facilities.
E. Parks impact fees may also be used to recoup public improvement costs incurred
by the City to the extent that growth and development will be served by the previously
constructed improvement.
F. In the event bonds or similar debt instruments are or have been issued for parks
facility improvements, impact fees may be used to pay the principal on such bonds.
Section 9. TMC Section 16.28.060 is hereby reenacted to read as follows:
16.28.060 Parks Impact Fee Capital Facilities Plan
In order to collect parks impact fees, the City must first adopt a parks capital facilities plan
as an element of the City's Comprehensive Plan. The City's Capital Facilities Plan for
parks services shall consist of the following elements:
1. The City's capacity over the next six years, based on an inventory of the
City's parks facilities both existing and under construction;
2. The forecast of future needs for parks facilities based upon the City's
population projections;
3. A six-year financial plan component, updated as necessary, to maintain at
least a six-year forecast for financing needed within projected funding levels;
4. Application of the formula set forth in this ordinance based upon the
information in the capital facilities plan; and
5. City Council Action. No new or revised impact fee shall be effective until
adopted by the City Council following a duly advertised public hearing to consider the
City's Capital Facilities Plan or plan update, except for fees adjusted through the annual
update process outlined in TMC Section 16.28.080.
Section 10. TMC Section 16.28.070 is hereby reenacted, thereby eliminating Figure
16-3, "2008 Tukwila Parks Impact Fees Calculation," and Figure 16-4, "Tukwila Parks
Capital Facilities List," and shall read as follows:
16.28.070 Parks Impact Fee Formula
A. The impact fee formula is based on the assumptions found in Figure 16 3, 2008
List,"Tukwila Fire and Parks Impact Fees Rate Study, 2017," Exhibit A attached to the
ordinance and by this reference fully incorporated herein. A fee schedule is codified as
Figure 16-1, Fee Schedule, attached hereto as Exhibit B.
B. Each development shall mitigate its impacts on the City's parks facilities by
payment of a fee that is based on the type of land use and square footage of the
development, and proportionate to the cost of the parks facility improvements necessary
to serve the needs of growth. For residential development, fee amount is based on
number of units; for commercial development, fee amount is based on square footage of
the development.
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C. Applications for a change of use shall receive credit based on the existing use.
This credit is calculated by deducting the fee amount of the existing use from the fee of
the proposed use.
Section 11. TMC Section 16.28.080, "Annual Parks Impact Fee Updates," is hereby
established to read as follows:
16.28.080 Annual Parks Impact Fee Updates
Park impact fee rates shall be updated annually using the following procedures:
1. The Director of Parks and Recreation ("Director") shall use the Construction
Cost Index for Seattle (June -June) published by the Engineering News Record to
calculate annual inflation adjustments in the impact fee rates. The parks impact fees shall
not be adjusted for inflation should the index remain unchanged.
2. The impact fee rates, as updated annually per TMC Section 16.28.080(1),
shall be effective January 1, 2019, and on January 1 of each year thereafter, and a copy
shall be provided to the City Council.
Section 12. TMC Section 16.28.090 is hereby reenacted to read as follows:
16.28.08.0-090 Individual Project Parks Impact Fee Adjustments
A. The City may adjust a parks impact fee at the time the fee is imposed in order to
consider unusual circumstances in specific cases to ensure that impact fees are imposed
fairly.
B. In calculating the fee imposed on a particular development, the City shall permit
consideration of studies and data submitted by a developer in order to adjust the amount
of the fee. The developer shall submit an independent fee calculation study to the Director
of Parks and Recreation, who shall review the study to determine that the study:
1. Is based on accepted impact fee assessment practices and methodologies;
2. Uses acceptable data sources and the data used is comparable with the
uses and intensities planned for the proposed development activity;
3. Complies with the applicable state laws governing impact fees;
4. Is prepared and documented by professionals who are mutually agreeable
to the City and the developer and who are qualified in their respective fields; and
5. Shows the basis upon which the independent fee calculation was made.
C. In reviewing the study, the Director of Parks and Recreation ("Director") may
require the developer to submit additional or different documentation. If an acceptable
study is presented, the Director e ' . or e - - _ e - may adjust the fee for the
particular development activity. The Director shall consider the documentation submitted
by the applicant, but is not required to accept such documentation that the Director
reasonably deems to be inaccurate or unreliable.
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D. A developer requesting an adjustment or independent fee calculation may pay
the impact fees imposed by this ordinance in order to obtain a building permit while the
City determines whether to partially reimburse the developer by making an adjustment or
by accepting the independent fee calculation.
Section 13. TMC Section 16.28.100 is hereby reenacted to read as follows:
16.28.040-100 Credits
In computing the fee applicable to a given development, credit shall be given for the fair
market value measured at the time of dedication, for any dedication of land for
improvements to, or new construction of, any parks facilities that are identified in the
Capital Facilities Element and that are required by the City as a condition of approving
the development activity.
Section 14. TMC Section 16.28.110 is hereby reenacted to read as follows:
16.2840-0-110 Appeals
A. Any fee payer may pay the impact fees imposed by this ordinance under protest
in order to obtain a building permit.
B. Appeals regarding parks impact fees imposed on any development activity may
only be submitted by the fee payer of the property where such development activity will
occur. No appeal shall be permitted unless and until the impact fee at issue has been
paid
C. Determinations by the City staff with respect to the applicability of parks impact
fees to a given development activity, or the availability of a credit, can be appealed to the
City's Hearing Examiner pursuant to this section.
D. An appeal shall be filed within 10 working days of payment of the impact fees
under protest or within 10 working days of the City's issuance of a written determination
of a credit or exemption decision by filing with the City Clerk a notice of appeal giving the
reasons for the appeal and paying the accompanying appeal fee as set forth in the
existing fee schedule for land use decisions.
Section 15. TMC Section 16.28.120 is hereby reenacted to read as follows:
16.28.120 Exemptions
A. The parks impact fees are generated from the formula for calculating the fees as
set forth in this chapter. The amount of the impact fees is determined by the information
contained in the adopted parks master plan and related documents, as appended to the
City's Comprehensive Plan. All development activity located within the City shall be
charged a parks impact fee; provided, that the following exemptions shall apply.
B. The following shall be exempt from parks impact fees:
1. Replacement of a structure with a new structure having the same use, at the
same site, and with the same gross floor area, when such replacement is within 12
months of demolition or destruction of the previous structure.
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2. Alteration, expansion, or remodeling of an existing dwelling or structure
where no new units are created and the use is not changed.
3. Construction of an accessory residential structure.
4. Miscellaneous improvements including, but not limited to, fences, walls,
swimming pools, and signs that do not create an increase in demand for parks services.
5. Demolition of or moving an existing structure within the City from one site to
another.
6. Parks impact fees for the construction of low-income housing may be
reduced at the discretion of the Parks and Recreation Director when requested by the
property owner in writing prior to permit submittal and subject to the following criteria:
a. The property owner must Ssubmittal of -a fiscal impact analysis of how a
reduction in impact fees for the project would contribute to the creation of low-income
housing; and
ob. The developer property owner must record a covenant per RCW
82.02.060(3) that prohibits using the property for any purpose other than for low-income
housing at the original income limits for a period of at least 10 years. At a minimum, the
covenant must address price restrictions and household income limits for the low-income
housing, and that if the property is converted to a use other than low income housing
within 10 years, the property owner must pay the City the applicable impact fees in effect
at the time of conversion.
c. Should the property owner satisfy the criteria in TMC Section
16.28.120.B.6., a and b, and the Director determines a fee reduction is in the best interest
of the City, the fees will be reduced, based on the following table:
b. Fec reduction table.
Unit Size
Affordability Target 1
Fee Reduction
2 or more bedrooms
80% 2
40%
2 or more bedrooms
60% 2
60%
Any size
50% 2
80%
1 — Units to be sold or rented to a person or household whose monthly
housing costs, including utilities other than telephone, do not exceed
30% of the household's monthly income.
2 — Percentage of King County Median family income adjusted for family
size as reported by the U.S. Department of Housing and Urban
Development.
7. Change of Use. A development permit for a change of use that has less
impact than the existing use shall not be assessed a parks impact fee.
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8. A fee payer required to pay for system improvements pursuant to RCW
43.21C.060 shall not be required to pay an impact fee for the same improvements under
this ordinance.
Section 16. TMC Section 16.28.125 is hereby reenacted to read as follows:
16.28.125 Residential Impact Fee Deferral
A. Purpose. The purpose of this chapter is to comply with the requirements of RCW
recovery in the construction industry.
BA. Applicability.
1. The provisions of this chapter section shall apply to all impact fees
established and adopted by the City pursuant to Chapter 82.02 RCW, including parks
impact fees assessed under Tukwila Municipal Code Chapter 16.28.
2. Subject to the limitations imposed in the Tukwila Municipal Code, the
provisions of this chapter section shall apply to all building permit applications for single-
family detached and single-family attached residential construction. For the purposes of
this chaptersection, an "applicant" includes an entity that controls the named applicant,
is controlled by the named applicant, or is under common control with the named
applicant.
GB. Impact Fee Deferral.
1. Deferral Request Authorized. Applicants for single-family attached or single
family detached residential building permits may request to defer payment of required
impact fees until the sooner of:
a. final inspection; or
b. the closing of the first sale of the property occurring after the issuance
of the applicable building permit;
which request shall be granted so long as the requirements of this chapter
section are satisfied.
2. Method of Request. A request for impact fee deferral shall be declared
submitted at the time of preliminary plat application (for platted development) or building
permit application (for non -platted development) in writing on a form or forms provided by
the City, along with payment of the applicable application or permit fees.
3. Calculation of Impact Fees. The amount of impact fees to be deferred under
this chapter section shall be determined as of the date the request for deferral is
submitted.
DC. Deferral Term. The term of an impact fee deferral granted under this chapter
section may not exceed 18 months from the date the building permit is issued ("Deferral
Term"). If the condition triggering payment of the deferred impact fees does not occur
prior to the expiration of the Deferral Term, then full payment of the impact fees shall be
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due on the last date of the Deferral Term.
D. Deferred Impact Fee Lien.
1. Applicant's Duty to Record Lien. An applicant requesting a deferral under
this chapter section must grant and record a deferred impact fee lien, in an amount equal
to the deferred impact fees, against the property in favor of the City in accordance with
the requirements of RCW 82.02.050(3)(c).
2. Satisfaction of Lien. Upon receipt of final payment of all deferred impact fees
for the property, the City shall execute a release of deferred impact fee lien for the
property. The property owner at the time of the release is responsible, at his or her own
expense, for recording the lien release.
FE. Limitation on Deferrals. Each applicant for a single-family residential
construction permit, in accordance with his or her contractor registration number or other
unique identification number, is entitled to annually receive deferrals for the first 20 single-
family residential construction building permits. The deferral entitlements allowed under
this chapter shall be limited to the first 20 single family residential construction building
16.28.095 Parks Impact Fcc Deferral
Urban Center Transit Oriented Development (TUC TOD) zoning district, fee deferrals of
1. The property owner must submit a technically complete building permit
2. Before issuance of the building permit, the property owner must submit a
be submitted to the City no later than December 31, 2016.
3. The project must be located west of the Green River and be within the TUC
Code.
-
'1. The project must include at I ast 100 residential units and at least 50 percent
5. A fee deferral agreement between the City and the property owner must be
executed prior to issuance of the building permit. The Mayor is authorized to execute
secure payment of the deferred impact fees, plus accrued interest, in the case of default
by the property owner. Provisions may include, but arc not limited to, a lien against
subject property, letter of credit and/or surety bond.
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ee e••••••
appeals under TMC Section 16.28.100.
B. The Mayor may consider other relevant information in approving fee deferral
requests including, but not limited to, the ability of the property owner to satisfy the
obligations of thc agreement and pay the deferred impact fees. The Mayor is authorized
City, and/or to protect thc public welfare.
ivancc. The property owner shall make 8 equal, annual installment payments to the
to the end of the 10 year deferral term.
D. interest shall be charged on deferred parks impact fees. The interest rate shall
E. The parks impact fee deferral agreement may be consolidated with any
Council.
Section 17. TMC Section 16.28.130 is hereby reenacted to read as follows:
16.2841-0130 Refunds
A. If the City fails to expend or encumber the impact fees within 10 years from the
date the fees were paid, unless extraordinary, compelling reasons exist for fees to be held
longer than 10 years, the current owner of the property on which the impact fees were
paid may receive a refund of such fees. Such extraordinary or compelling reasons shall
be identified in written findings by the City Council.
B. The City shall notify potential claimants by first class mail that they are entitled to
a refund. In determining whether impact fees have been expended or encumbered,
impact fees shall be considered expended or encumbered on a first -in, first -out basis.
C. Owners seeking a refund must submit a written request for a refund of the fees
to the City within one year of the date the right to claim a refund arises or notice is given,
whichever comes later.
D. Any impact fees for which no application has been made within the one-year
period shall be retained by the City and expended on appropriate parks facilities.
E. Refunds of impact fees shall include any interest earned on the impact fees by
the City.
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Section 18. TMC Section 16.28.140 is hereby reenacted to read as follows:
16.28.130 140 Authority Unimpaired
Nothing in this ordinance shall preclude the City from requiring the fee payer to mitigate
adverse environmental effects of a specific development pursuant to the State
Environmental Policy Act, Chapters 43.21C RCW and/or Chapter 58.17 RCW, governing
plats and subdivisions, provided that the exercise of this authority is consistent with
Chapters 43.21C and 82.02 RCW.
Section 19. 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 20. 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 21. 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
January 1, 2018.
PASSED BY THE CITY COUNCIL OF THE CITY OF TUKWILA, WASHINGTON, at
a Regular Meeting thereof this day of , 2017.
ATTEST/AUTHENTICATED:
Christy O'Flaherty, MMC, City Clerk
APPROVED AS TO FORM BY:
Rachel B. Turpin, City Attorney
Allan Ekberg, Mayor
Filed with the City Clerk:
Passed by the City Council:
Published:
Effective Date:
Ordinance Number:
Attachments: Exhibit A — Tukwila Fire and Parks Impact Fees Rate Study, 2017
Exhibit B — Fee Schedule
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Page 12 of 12
EXHIBIT A
Tukwila Fire and Parks Impact Fees Rate Study, 2017
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l_�rIIIi
,J Lib _
AN ORDINANCE OF THE CITY COUNCIL OF THE CITY OF
TUKWILA, WASHINGTON, AMENDING ORDINANCE NO.
2430 TO ADOPT AN AMENDED 2014 PARKS, RECREATION
AND OPEN SPACE PLAN FOR THE CITY OF TUKWILA;
PROVIDING FOR SEVERABILITY; AND ESTABLISHING AN
EFFECTIVE DATE.
WHEREAS, RCW 35A.63.062 authorizes the City of Tukwila to perform
comprehensive park and open space planning; and
WHEREAS, the 2014 Parks, Recreation and Open Space Plan was reviewed in
accordance with the State Environmental Policy Act process required by RCW 43.21C
and was the subject of public comment prior to adoption in 2014; and
WHEREAS, the Tukwila City Council adopted the 2014 Parks, Recreation and Open
Space Plan per Ordinance No. 2430 on February 18, 2014; and
WHEREAS, minor amendments to the 2014 Parks, Recreation and Open Space Plan
are deemed appropriate as it relates to impact fees as authorized by RCW 82.02; and the
overall goals, objectives and service standards of the 2014 Parks, Recreation and Open
Space Plan are retained; and
WHEREAS, the Plan amendments have been evaluated as appropriate under SEPA
pursuant to RCW 43.21C in 2017; and
WHEREAS, the amended Plan was presented to the public for comment and
modification at a public hearing on November 27, 2017;
NOW, THEREFORE, THE CITY COUNCIL OF THE CITY OF TUKWILA,
WASHINGTON, HEREBY ORDAINS AS FOLLOWS:
Section 1. Ordinance No. 2430 is hereby amended with the City Council's adoption
of the Amended 2014 Parks, Recreation and Open Space Plan.
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Section 2. A copy of the Amended 2014 Parks, Recreation and Open Space Plan
shall be kept on file electronically and accessible from the City's website in accordance
with Washington State records retention schedule requirements and City policy, and shall
be made available to the public upon request.
Section 3. The Amended 2014 Parks, Recreation and Open Space Plan is adopted
by reference as part of the Comprehensive Plan.
Section 4. A copy of this ordinance and the Amended 2014 Parks, Recreation and
Open Space Plan shall be filed with the following City departments:
1 Community Development
2. Public Works Department
3. Finance Department
4. Parks & Recreation Department
5. Mayor's Office
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. If any section, subsection, paragraph, sentence, clause or
phrase of this ordinance or its application to any person or situation should be held to be
invalid or unconstitutional for any reason by a court of competent jurisdiction, such
invalidity or unconstitutionality shall not affect the validity or constitutionality of the
remaining portions of this ordinance or its application to any other person or situation.
Section 7. Effective Date. This ordinance or a summary thereof shall be published
in the official newspaper of the City, and shall take effect and be in full force five days
after passage and publication as provided by law.
PASSED BY THE CITY COUNCIL OF THE CITY OF TUKWILA, WASHINGTON, at
a Regular Meeting thereof this day of , 2017.
ATTEST/AUTHENTICATED:
Christy O'Flaherty, MMC, City Clerk
APPROVED AS TO FORM BY:
Rachel B. Turpin, City Attorney
Allan Ekberg, Mayor
Filed with the City Clerk:
Passed by the City Council:
Published:
Effective Date:
Ordinance Number:
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Page 2 of 2
A RESOLUTION OF THE CITY COUNCIL OF THE
CITY OF TUKWILA, WASHINGTON, AMENDING
RESOLUTION NO. 1901 TO ADOPT AN AMENDED
2017-2022 FINANCIAL PLANNING MODEL AND THE
CAPITAL IMPROVEMENT PROGRAM.
WHEREAS, when used in conjunction with the biennial City budget, the Capital
Improvement Program (CIP) and the Financial Planning Model for the period of 2017-
2022 are resource documents to help plan directions the City will consider for the future;
and
WHEREAS, the City Council adopted the 2017-2022 Financial Planning Model and
accompanying Capital Improvement Program per Resolution No. 1901 on December 5,
2016; and
WHEREAS, the Financial Planning Model and Capital Improvement Program are not
permanent fixed plans, but are guidelines or tools to help reflect future goals and future
resources at the time budgets are being planned; and
WHEREAS, amendments to the Capital Improvement Program are deemed
appropriate as it relates to impact fees as authorized by RCW 82.02; and the overall goals
and objectives of the 2017-2022 Financial Planning Model and Capital Improvement
Program are retained; and
WHEREAS, on November 27, 2017, the Tukwila City Council, following adequate
public notice, held a public hearing on the draft resolution;
NOW, THEREFORE, THE CITY COUNCIL OF THE CITY OF TUKWILA,
WASHINGTON, HEREBY RESOLVES AS FOLLOWS:
Section 1. Resolution No. 1901 is hereby amended with the City Council's adoption
of the Amended 2017-2022 Financial Planning Model and accompanying Capital
Improvement Program, incorporated by this reference as if fully set forth herein.
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Section 2. A copy of the Amended 2017-2022 Financial Planning Model and
accompanying Capital Improvement Program shall be kept on file electronically and
accessible from the City's website in accordance with Washington State records retention
schedule requirements and City policy, and shall be made available to the public upon
request.
PASSED BY THE CITY COUNCIL OF THE CITY OF TUKWILA, WASHINGTON, at
a Regular Meeting thereof this day of , 2017.
ATTEST/AUTHENTICATED:
Christy O'Flaherty, MMC, City Clerk Dennis Robertson, Council President
APPROVED AS TO FORM BY:
Filed with the City Clerk:
Passed by the City Council:
Resolution Number:
Rachel B. Turpin, City Attorney
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Page 2 of 2
City of Tukwila
Allan Ekberg, Mayor
INFORMATIONAL MEMORANDUM
TO: Finance Committee
FROM: Peggy McCarthy
CC: Mayor Ekberg
DATE: November 15, 2017
SUBJECT: Bond Ordinance to Finance the Public Works Shops portion of the Public
Safety Plan
ISSUE
Approve an ordinance for the issuance of one or more series of limited tax obligation (LTGO) bonds
in the aggregate principal amount not to exceed $20,000,000 to finance the acquisition of land and
construction of City maintenance facilities.
BACKGROUND
Pursuant to an affirmative vote on November 8, 2016, $36,709,954 of unlimited tax general obligation
(UTGO) bonds were issued to finance the justice center, the fire station and fire equipment and
apparatus portion of the Public Safety Plan. The Public Works shops portion of the Public Safety Plan
will be financed through councilmanic bonds and other means. On November 6, 2017, the City Council
authorized the acquisition of parcels, including through eminent domain, to site the justice center, fire
station 54 and the Public Works shops.
DISCUSSION
The proceeds of the proposed bond issue(s) will be used to finance the acquisition of property for the
Public Works shops and pay for soft costs through mid -2019. Since the amount and timing of funds
needed is dependent on the speed with which the property purchase and sale agreements can be
negotiated, or legal decisions reached, the ordinance authorizes one or more bond issues to maximize
flexibility and minimize financing costs. It also authorizes short-term financing (i.e., a bank loan), if
funds are needed very quickly.
FINANCIAL IMPACT
Over a 5 -year period the estimated actual debt service cost would exceed the Financial Planning
Model projection by $177 thousand.
In Thous$
DEBT SERVICE 2018 2019 2020 2021 2022 TOTAL
Actual estimated $ 650 $ 825 $ 825 $ 825 $ 1,550 $ 4,675
Budgeted 246 712 1,180 1,180 1,180 4,498
Actual Estimate Over
Budget; Financial Impact
$ 404 $ 113 $ (355) $ (355) $ 370 $ 177
RECOMMENDATION
The Council is being asked to approve the ordinance and consider this item at the November 27,
2017 Committee of the Whole meeting and subsequent December 4, 2017 Regular Meeting.
ATTACHMENTS
-Draft bond ordinance.
-Presentation by PFM
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M IMF
AN ORDINANCE OF THE CITY COUNCIL OF THE CITY OF
TUKWILA, WASHINGTON, AUTHORIZING THE ISSUANCE OF ONE
OR MORE SERIES OF LIMITED TAX GENERAL OBLIGATION
BONDS IN THE AGGREGATE PRINCIPAL AMOUNT OF NOT TO
EXCEED $20,000,000 TO FINANCE AND/OR REIMBURSE COSTS
RELATED TO THE ACQUISITION OF LAND AND THE
CONSTRUCTION, IMPROVEMENT AND EQUIPPING OF
MAINTENANCE AND OTHER CITY FACILITIES AND TO PAY
COSTS OF ISSUING THE BONDS; PROVIDING THE FORM, TERMS
AND COVENANTS OF THE BONDS; PROVIDING FOR THE
DISPOSITION OF THE PROCEEDS OF THE SALE OF THE BONDS;
DELEGATING AUTHORITY TO APPROVE THE METHOD OF SALE
AND THE FINAL TERMS OF THE BONDS; AND PROVIDING FOR
OTHER MATTERS RELATING THERETO; PROVIDING FOR
SEVERABILITY; AND ESTABLISHING AN EFFECTIVE DATE.
WHEREAS, the City Council (the "Council") of the City of Tukwila, Washington (the
"City") has deemed it is in the best interest of the City to acquire certain parcels of land,
including through eminent domain, and to construct, improve and equip maintenance
and other City facilities (together, the "Project"); and
WHEREAS, after due consideration the Council has determined that it is in the
best interest of the City to authorize the issuance and sale of limited tax general
obligation bonds to pay all or a portion of the costs of the Project and to pay costs of
issuance for the Bonds; and
WHEREAS, the Council wishes to delegate authority to the Mayor, City
Administrator, and Finance Director, or his or her designee (each, a "Designated
Representative"), for a limited time, to select the method of bond sale for each series of
bonds authorized hereunder that is in the best interest of the City (if any) and to
approve the interest rates, maturity dates, redemption terms and principal maturities for
each series of Bonds within the parameters set by this ordinance; and
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WHEREAS, the Bonds of each series shall be sold by either a direct purchase or
be underwritten as set forth herein;
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 words and terms
shall have the following meanings, unless the context or use indicates another or
different meaning or intent. Unless the context indicates otherwise, words importing the
singular number shall include the plural number and vice versa.
Beneficial Owner means any person that has or shares the power, directly or
indirectly, to make investment decisions concerning ownership of any Underwritten
Bonds (including persons holding Underwritten Bonds through nominees, depositories
or other intermediaries).
Bond Counsel means Pacifica Law Group LLP, or an attorney at law or a firm of
attorneys, selected by the City, of nationally recognized standing in matters pertaining
to the tax exempt nature of interest on bonds issued by states and their political
subdivisions.
Bond Purchase Contract means the contract, if any, for the purchase of any
Underwritten Bonds sold by negotiated sale to the Underwriter, executed pursuant to
Section 12.
Bond Register means the registration books showing the name, address and tax
identification number of each Registered Owner of a series of Bonds, maintained
pursuant to Section 149(a) of the Code.
Bond Registrar means: (a) for any Underwritten Bonds, initially, the fiscal agent of
the State, for the purposes of registering and authenticating the Underwritten Bonds,
maintaining the Bond Register for the Underwritten Bonds, effecting transfer of
ownership of the Underwritten Bonds and paying interest on and principal of the
Underwritten Bonds; and (b) for any Direct Purchase Bonds, the Finance Director of the
City.
Bonds mean the City's Limited Tax General Obligation Bonds, 2018, with such
series designation as approved by a Designated Representative, authorized to be
issued pursuant to the terms of this ordinance.
Certificate of Award means one or more certificates, if any, for the purchase of
any Underwritten Bonds sold by competitive sale awarding the Bonds of a series to the
initial purchaser as set forth in Section 12 of this ordinance.
City means the City of Tukwila, a municipal corporation duly organized and existing
under the laws of the State.
City Clerk means the duly appointed and acting City Clerk of the City or the
successor to the duties of that office.
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City Administrator means the duly appointed and acting City Administrator,
including anyone acting in such capacity for the position, or the successor to the duties
of that office.
Closing means the date of delivery of a Bond or Bonds of a series to the initial
purchaser thereof.
Code means the Internal Revenue Code of 1986 as in effect on the date of
issuance of a series of Bonds or (except as otherwise referenced herein) as it may be
amended to apply to obligations issued on the date of issuance of such series of
Bonds, together with applicable proposed, temporary and final regulations promulgated,
and applicable official public guidance published, under the Code.
Commission means the United States Securities and Exchange Commission.
Continuing Disclosure Certificate means the written undertaking for the benefit
of the owners and Beneficial Owners of any Underwritten Bonds as required by
Section (b)(5) of the Rule.
Council or City Council means the Tukwila City Council, as the general legislative
body of the City as the same is duly and regularly constituted from time to time.
Debt Service Fund means the fund or account created pursuant to this ordinance
for the purpose of paying debt service on the Bonds.
Designated Representative means the Mayor, City Administrator and Finance
Director, or his or her designee. The signature of one Designated Representative shall
be sufficient to bind the City.
Direct Purchase Bonds means any Bonds or Bond sold to a Direct Purchaser
pursuant to Section 12 of this ordinance.
Direct Purchaser means any bank or other financial institution selected to
purchase (or to accept delivery of one or more Direct Purchase Bonds to evidence the
City's obligations under a Loan Agreement) one or more Direct Purchase Bonds
pursuant to Section 12 of this ordinance.
DTC means The Depository Trust Company, New York, New York, a limited
purpose trust company organized under the laws of the State of New York, as
depository for any Underwritten Bonds pursuant to Section 4(a) of this ordinance.
Fair Market Value means the price at which a willing buyer would purchase an
investment from a willing seller in a bona fide, arm's-length transaction, except for
specified investments as described in Treasury Regulation §1.148-5(d)(6), including
United States Treasury obligations, certificates of deposit, guaranteed investment
contracts, and investments for yield restricted defeasance escrows. Fair Market Value
is generally determined on the date on which a contract to purchase or sell an
investment becomes binding, and, to the extent required by the applicable regulations
under the Code, the term "investment" will include a hedge.
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Federal Tax Certificate means one or more certificates executed by a Designated
Representative setting forth the requirements of the Code for maintaining the tax
exemption of interest on the Bonds of a series to be dated as of the date of Closing for
such Bonds, and attachments thereto.
Finance Director means the duly appointed and acting Finance Director of the City
or the successor to such officer.
Government Obligations means those obligations now or hereafter defined as
such in chapter 39.53 RCW constituting direct obligations of the United States or
obligations unconditionally guaranteed by the United States, as such chapter may be
hereafter amended or restated.
Letter of Representations means the Blanket Issuer Letter of Representations
given by the City to DTC, as amended from time to time.
Loan Agreement means one or more loan or purchase agreements, if any,
between the City and a Direct Purchaser under which the Direct Purchaser will make a
loan to the City, evidenced by a Direct Purchase Bond, or under which the Direct
Purchaser will purchase the Direct Purchase Bond.
Mayor or City Mayor means the elected Mayor of the City or the successor to the
duties of that office.
MSRB means the Municipal Securities Rulemaking Board or any successors to its
functions.
Official Statement means the disclosure document(s) prepared and delivered in
connection with the issuance of any Underwritten Bonds.
Project means the capital projects described in Section 2 of this ordinance.
Project Fund means the account created pursuant to Section 8 of this ordinance.
Record Date means the close of business for the Bond Registrar that is 15 days
preceding any interest and/or principal payment or redemption date.
Registered Owner means the person named as the registered owner of a Bond in
the Bond Register.
Rule means the Commission's Rule 15c2-12 under the Securities Exchange Act of
1934, as the same may be amended from time to time.
Sale Document means the Bond Purchase Contract, Certificate of Award, or Loan
Agreement if any, executed by a Designated Representative in connection with the sale
of a series of Bonds pursuant to Section 12 of this ordinance, which shall provide for
the name, principal and interest payment dates and amounts, redemption/prepayment
rights, and other terms to describe such series of Bonds as determined to be necessary
by a Designated Representative.
State means the State of Washington.
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Underwriter means any underwriter, in the case of a negotiated sale, or initial
purchaser, in the case of a competitive sale, for any series of Underwritten Bonds
selected pursuant to Section 12.
Underwritten Bonds means Bonds of a series, if any, sold pursuant to a
negotiated or a competitive sale by the City to an Underwriter pursuant to Section 12 of
this ordinance.
Section 2. Authorization of the Project. The Bonds are being issued to finance
and/or reimburse the City for costs of acquiring certain parcels of land, including
through eminent domain, and constructing, improving and equipping maintenance and
other City facilities (together, the "Project") and paying costs of issuance for the Bonds.
The cost of all necessary and other costs incurred in connection with the Project shall
be paid from other City funds legally available for such purposes.
Section 3. Authorization of Bonds and Bond Details.
(a) General. For the purpose of paying and/or reimbursing the City for costs of the
Project and paying costs of issuance, the City is hereby authorized to issue and sell one
or more series of its limited tax general obligation bonds in an aggregate principal
amount not to exceed $20,000,000 (the "Bonds").
The Bonds shall be general obligations of the City and shall be designated "City of
Tukwila, Washington, Limited Tax General Obligation Bonds, 2018," with series
designation or other such designation as determined to be necessary by a Designated
Representative. The Bond or Bonds of a series shall be dated as of the date of Closing
of such series of Bonds; shall be fully registered as to both principal and interest; and
shall be sold from time to time under this ordinance as either Direct Purchase Bonds or
Underwritten Bonds, as approved and executed by a Designated Representative
pursuant to Section 12 hereof.
(b) Underwritten Bonds. Any Bonds of a series may be sold as Underwritten
Bonds. Underwritten Bonds shall be issued in denominations of $5,000, or any integral
multiple thereof, within a series and maturity; shall be numbered separately in such
manner and with any additional designation as the Bond Registrar deems necessary for
purposes of identification; shall bear interest payable on the dates set forth in the
applicable Sale Document; and shall be subject to optional and/or mandatory
redemption and mature on the dates and in the principal amounts set forth in the
applicable Sale Document.
(c) Direct Purchase Bonds. Any Bonds of a series may be sold as Direct
Purchase Bonds. Direct Purchase Bonds shall be dated as of the date of delivery to
the Direct Purchaser, shall be fully registered as to both principal and interest, shall be
in one denomination, and shall mature on the date set forth in the applicable Sale
Document. Direct Purchase Bonds shall bear interest from the dated date or the most
recent date to which interest has been paid at the interest rate set forth in the applicable
Sale Document. Interest on the principal amount of Direct Purchase Bonds shall be
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calculated per annum on a 30/360 basis, or as otherwise provided in the Bond and in
the applicable Sale Document. Principal of and interest on Direct Purchase Bonds shall
be payable at the times and in the amounts as set forth in the payment schedule
attached to the Direct Purchase Bond.
Section 4. Registration, Exchange and Payments.
(a) Underwritten Bonds.
(1) Bond Registrar/Bond Register. The City hereby specifies and adopts
the system of registration approved by the Washington State Finance Committee from
time to time through the appointment of a State fiscal agent. The City shall cause a
bond register to be maintained by the Bond Registrar. So long as any Underwritten
Bonds remain outstanding, the Bond Registrar shall make all necessary provisions to
permit the exchange or registration or transfer of Underwritten Bonds at its designated
office. The Bond Registrar may be removed at any time at the option of the Finance
Director upon prior notice to the Bond Registrar and a successor Bond Registrar
appointed by the Finance Director. No resignation or removal of the Bond Registrar
shall be effective until a successor shall have been appointed and until the successor
Bond Registrar shall have accepted the duties of the Bond Registrar hereunder. The
Bond Registrar is authorized, on behalf of the City, to authenticate and deliver
Underwritten Bonds transferred or exchanged in accordance with the provisions of such
Underwritten Bonds and this ordinance and to carry out all of the Bond Registrar's
powers and duties under this ordinance. The Bond Registrar shall be responsible for its
representations contained in the Certificate of Authentication of the Underwritten Bonds.
(2) Registered Ownership. The City and the Bond Registrar, each in its
discretion, may deem and treat the Registered Owner of each Underwritten Bond as the
absolute owner thereof for all purposes (except as provided in the Continuing Disclosure
Certificate), and neither the City nor the Bond Registrar shall be affected by any notice
to the contrary. Payment of any such Bond shall be made only as described in
Section 4(A)(7), but such Underwritten Bond may be transferred as herein provided. All
such payments made as described in Section 4(A)(7) shall be valid and shall satisfy and
discharge the liability of the City upon such Underwritten Bond to the extent of the
amount or amounts so paid.
(3) DTC Acceptance/Letters of Representations. The Underwritten Bonds
initially shall be held by DTC acting as depository. The City has executed and delivered
to DTC a Blanket Issuer Letter of Representations. Neither the City nor the Bond
Registrar shall have any responsibility or obligation to DTC participants or the persons
for whom they act as nominees (or any successor depository) with respect to the
Underwritten Bonds in respect of the accuracy of any records maintained by DTC (or
any successor depository) or any DTC participant, the payment by DTC (or any
successor depository) or any DTC participant of any amount in respect of the principal of
or interest on Underwritten Bonds, any notice which is permitted or required to be given
to Registered Owners under this ordinance (except such notices as shall be required to
be given by the City to the Bond Registrar or to DTC (or any successor depository)), or
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any consent given or other action taken by DTC (or any successor depository) as the
Registered Owner. For so long as any Underwritten Bonds are held by a depository,
DTC or its successor depository or its nominee shall be deemed to be the Registered
Owner for all purposes hereunder, and all references herein to the Registered Owners
shall mean DTC (or any successor depository) or its nominee and shall not mean the
owners of any beneficial interest in such Underwritten Bonds.
(4) Use of Depository.
(A) The Underwritten Bonds shall be registered initially in the name of
"Cede & Co.", as nominee of DTC, with one Underwritten Bond maturing on each of the
maturity dates for the Underwritten Bonds in a denomination corresponding to the total
principal therein designated to mature on such date. Registered ownership of such
Underwritten Bonds, or any portions thereof, may not thereafter be transferred except:
(i) to any successor of DTC or its nominee, provided that any such successor shall be
qualified under any applicable laws to provide the service proposed to be provided by it;
(ii) to any substitute depository appointed by the Finance Director pursuant to
subsection (B) below or such substitute depository's successor; or (iii) to any person as
provided in subsection (D) below.
(B) Upon the resignation of DTC or its successor (or any substitute
depository or its successor) from its functions as depository or a determination by the
Finance Director to discontinue the system of book entry transfers through DTC or its
successor (or any substitute depository or its successor), the Finance Director may
hereafter appoint a substitute depository. Any such substitute depository shall be
qualified under any applicable laws to provide the services proposed to be provided by
it.
(C) In the case of any transfer pursuant to clause (i) or (ii) of subsection
(A) above, the Bond Registrar shall, upon receipt of all outstanding Underwritten Bonds
together with a written request on behalf of the Finance Director, issue a single new
Underwritten Bond for each maturity of that series then outstanding, registered in the
name of such successor or such substitute depository, or their nominees, as the case
may be, all as specified in such written request of the Finance Director.
(D) In the event that: (A) DTC or its successor (or substitute depository or
its successor) resigns from its functions as depository, and no substitute depository can
be obtained; or (B) the Finance Director determines that it is in the best interest of the
beneficial owners of the Underwritten Bonds that such owners be able to obtain
physical Bond certificates, the ownership of such Underwritten Bonds may then be
transferred to any person or entity as herein provided, and shall no longer be held by a
depository. The Finance Director shall deliver a written request to the Bond Registrar,
together with a supply of physical Bonds, to issue Underwritten Bonds as herein
provided in any authorized denomination. Upon receipt by the Bond Registrar of all
then outstanding Underwritten Bonds together with a written request on behalf of the
Finance Director to the Bond Registrar, new Underwritten Bonds of such series shall be
issued in the appropriate denominations and registered in the names of such persons
as are requested in such written request.
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(5) Registration of Transfer of Ownership or Exchange; Change in
Denominations. The transfer of any Underwritten Bond may be registered and
Underwritten Bonds may be exchanged, but no transfer of any such Underwritten Bond
shall be valid unless it is surrendered to the Bond Registrar with the assignment form
appearing on such Underwritten Bond duly executed by the Registered Owner or such
Registered Owner's duly authorized agent in a manner satisfactory to the Bond
Registrar. Upon such surrender, the Bond Registrar shall cancel the surrendered
Underwritten Bond and shall authenticate and deliver, without charge to the Registered
Owner or transferee therefor, a new Underwritten Bond (or Underwritten Bonds at the
option of the new Registered Owner) of the same series, date, maturity, and interest
rate and for the same aggregate principal amount in any authorized denomination,
naming as Registered Owner the person or persons listed as the assignee on the
assignment form appearing on the surrendered Underwritten Bond, in exchange for
such surrendered and cancelled Underwritten Bond. Any Underwritten Bond may be
surrendered to the Bond Registrar and exchanged, without charge, for an equal
aggregate principal amount of Bonds of the same series, date, maturity, and interest
rate, in any authorized denomination. The Bond Registrar shall not be obligated to
register the transfer of or to exchange any Underwritten Bond during the 15 days
preceding any principal payment or redemption date.
(6) Bond Registrar's Ownership of Bonds. The Bond Registrar may
become the Registered Owner of any Underwritten Bond 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 a member of, or in any
other capacity with respect to, any committee formed to protect the right of the
Registered Owners or beneficial owners of Underwritten Bonds.
(7) Place and Medium of Payment. Both principal of and interest on the
Underwritten Bonds shall be payable in lawful money of the United States of America.
Interest on the Underwritten Bonds shall be calculated on the basis of a year of
360 days and twelve 30 -day months. For so long as all Underwritten Bonds are held by
a depository, payments of principal thereof and interest thereon shall be made as
provided in accordance with the operational arrangements of DTC referred to in the
Letter of Representations. In the event that the Underwritten Bonds are no longer held
by a depository, interest on the Underwritten Bonds shall be paid by check or draft
mailed to the Registered Owners at the addresses for such Registered Owners
appearing on the Bond Register on the Record Date, or upon the written request of a
Registered Owner of more than $1,000,000 of Underwritten Bonds (received by the
Bond Registrar at least by the Record Date), such payment shall be made by the Bond
Registrar by wire transfer to the account within the United States designated by the
Registered Owner. Principal of the Underwritten Bonds shall be payable upon
presentation and surrender of such Underwritten Bonds by the Registered Owners at
the designated office of the Bond Registrar.
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If any Underwritten Bond is duly presented for payment and funds have not been
provided by the City on the applicable payment date, then interest will continue to
accrue thereafter on the unpaid principal thereof at the rate stated on the Underwritten
Bond until the Underwritten Bond is paid.
(b) Direct Purchase Bonds.
(1) Registrar/Bond Registrar. The Finance Director shall act as Bond
Registrar for any Direct Purchase Bonds. The Bond Registrar is authorized, on behalf
of the City, to authenticate and deliver the Direct Purchase Bonds if transferred or
exchanged in accordance with the provisions of the Direct Purchase Bonds and this
ordinance and to carry out all of the Bond Registrar's powers and duties under this
ordinance with respect to Direct Purchase Bonds.
(2) Registered Ownership. The City and the Bond Registrar may deem and
treat the Registered Owner of any Direct Purchase Bond as the absolute owner for all
purposes, and neither the City nor the Bond Registrar shall be affected by any notice to
the contrary.
(3) Transfer or Exchange of Registered Ownership. Direct Purchase
Bonds shall not be transferrable without the consent of the City unless: (A) the Direct
Purchaser's corporate name is changed and the transfer is necessary to reflect such
change; or (B) the transferee is a successor in interest of the Direct Purchaser by
means of a corporate merger, an exchange of stock, or a sale of assets.
Notwithstanding the foregoing, Direct Purchase Bonds may be transferred upon
satisfaction of the requirements, if any, set forth in the applicable Sale Document and
the Direct Purchase Bonds.
Section 5. Redemption Prior to Maturity and Purchase of Bonds.
(a) Mandatory Redemption of Term Bonds and Optional Redemption. The Bonds
of each series shall be subject to mandatory redemption to the extent, if any, set forth in
the applicable Sale Document and as approved by a Designated Representative
pursuant to Section 12. The Bonds of each series shall be subject to optional
redemption and/or prepayment on the dates, at the prices and under the terms set forth
in the applicable Sale Document approved by a Designated Representative pursuant to
Section 12.
(b) Purchase of Bonds. The City reserves the right to purchase any or all of the
Bonds offered to it at any time at a price deemed reasonable by the Finance Director
plus accrued interest to the date of purchase.
(c) Selection of Bonds for Redemption. If the Underwritten Bonds of a series are
held in book -entry only form, the selection of particular Underwritten Bonds within a
series and maturity to be redeemed shall be made in accordance with the operational
arrangements then in effect at DTC. If the Underwritten Bonds of a series are no longer
held by a depository, the selection of such Underwritten Bonds of such series to be
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redeemed and the surrender and reissuance thereof, as applicable, shall be made as
provided in the following provisions of this subsection (c). If the City redeems at any
one time fewer than all of the Underwritten Bonds of a series having the same maturity
date, the particular Underwritten Bonds or portions of Underwritten Bonds of such
series and maturity to be redeemed shall be selected by lot (or in such manner
determined by the Bond Registrar) in increments of $5,000. In the case of an
Underwritten Bond of a denomination greater than $5,000, the City and the Bond
Registrar shall treat each Underwritten Bond as representing such number of separate
Underwritten Bonds each of the denomination of $5,000 as is obtained by dividing the
actual principal amount of such Underwritten Bond by $5,000. In the event that only a
portion of the principal sum of an Underwritten Bond is redeemed, upon surrender of
such Underwritten Bond at the designated office of the Bond Registrar there shall be
issued to the Registered Owner, without charge therefor, for the then unredeemed
balance of the principal sum thereof, at the option of the Registered Owner, an
Underwritten Bond or Bonds of like series, maturity and interest rate in any of the
denominations herein authorized.
(d) Notice of Redemption or Prepayment.
(1) Official Notice. Notice of any prepayment of Direct Purchase Bonds shall
be provided by the City to the Direct Purchaser as provided in the applicable Sale
Document.
For so long as the Underwritten Bonds of a series are held by a depository, notice
of redemption shall be given in accordance with the operational arrangements of DTC
as then in effect, and neither the City nor the Bond Registrar shall provide any notice of
redemption to any beneficial owners. The notice of redemption may be conditional.
Thereafter (if the Underwritten Bonds are no longer held in uncertificated form), notice
of redemption shall be given in the manner hereinafter provided. Unless waived by any
owner of Underwritten Bonds to be redeemed, official notice of any such redemption
(which redemption may be conditioned by the Bond Registrar on the receipt of sufficient
funds for redemption or otherwise) shall be given by the Bond Registrar on behalf of the
City by mailing a copy of an official redemption notice by first class mail at least 20 days
and not more than 60 days prior to the date fixed for redemption to the Registered
Owner of the Underwritten Bond or Bonds to be redeemed at the address shown on the
Bond Register or at such other address as is furnished in writing by such Registered
Owner to the Bond Registrar.
All official notices of redemption shall be dated and shall state:
(A) the redemption date,
(B) the redemption price,
(C) if fewer than all outstanding Underwritten Bonds of a series are to be
redeemed, the identification by maturity (and, in the case of partial redemption, the
respective principal amounts) of the Underwritten Bonds to be redeemed,
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(D) any conditions to redemption,
(E) that unless conditional notice of redemption has been given and such
conditions have either been satisfied or waived, on the redemption date the redemption
price shall become due and payable upon each such Underwritten Bond or portion
thereof called for redemption, and that interest thereon shall cease to accrue from and
after said date, and
(F) the place where such Underwritten Bonds are to be surrendered for
payment of the redemption price, which place of payment shall be the designated office
of the Bond Registrar.
On or prior to any redemption date, unless such redemption has been rescinded or
revoked, the City shall deposit with the Bond Registrar an amount of money sufficient to
pay the redemption price of all the Underwritten Bonds or portions of Underwritten
Bonds which are to be redeemed on that date. The City retains the right to rescind any
redemption notice and the related optional redemption of Underwritten Bonds by giving
notice of rescission to the affected registered owners at any time on or prior to the
scheduled redemption date. Any notice of optional redemption that is so rescinded
shall be of no effect, and the Underwritten Bonds for which the notice of optional
redemption has been rescinded shall remain outstanding.
(2) Effect of Notice; Bonds Due. If notice of redemption has been given and
not rescinded or revoked, or if the conditions set forth in a conditional notice of
redemption have been satisfied or waived, the Underwritten Bonds or portions of
Underwritten Bonds to be redeemed shall, on the redemption date, become due and
payable at the redemption price therein specified, and from and after such date such
Underwritten Bonds or portions of Underwritten Bonds shall cease to bear interest.
Upon surrender of such Underwritten Bonds for redemption in accordance with said
notice, such Underwritten Bonds shall be paid by the Bond Registrar at the redemption
price. Installments of interest due on or prior to the redemption date shall be payable
as herein provided for payment of interest. All Underwritten Bonds which have been
redeemed shall be canceled by the Bond Registrar and shall not be reissued.
(3) Additional Notice. In addition to the foregoing notice, further notice shall
be given by the City as set out below, but no defect in said further notice nor any failure
to give all or any portion of such further notice shall in any manner defeat the
effectiveness of a call for redemption if notice thereof is given as above prescribed.
Each further notice of redemption given hereunder shall contain the information
required above for an official notice of redemption plus: (A) the CUSIP numbers of all
Underwritten Bonds being redeemed; (B) the date of issue of the Underwritten Bonds
as originally issued; (C) the rate of interest borne by each Underwritten Bond being
redeemed; (D) the series and maturity date of each Underwritten Bond being
redeemed; and (E) any other descriptive information needed to identify accurately the
Underwritten Bonds being redeemed. Each further notice of redemption may be sent at
least 20 days before the redemption date to each party entitled to receive notice
pursuant to Section 14 and the Continuing Disclosure Certificate and with such
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additional information as the City shall deem appropriate, but such mailings shall not be
a condition precedent to the redemption of such Underwritten Bonds.
(4) Amendment of Notice Provisions. The foregoing notice provisions of
this Section 5, including but not limited to the information to be included in redemption
notices and the persons designated to receive notices, may be amended by additions,
deletions and changes in order to maintain compliance with duly promulgated
regulations and recommendations regarding notices of redemption of municipal
securities.
Section 6. Form of Bonds. The Bonds shall be in substantially the form set forth
in Exhibit A, which is incorporated herein by this reference.
Section 7. Execution of Bonds. The Bonds of each series shall be executed on
behalf of the City by the facsimile or manual signature of the Mayor and shall be
attested to by the facsimile or manual signature of the City Clerk, and shall have the
seal of the City impressed or a facsimile thereof imprinted, or otherwise reproduced
thereon.
In the event any officer who shall have signed or whose facsimile signatures
appear on any of the Bonds shall cease to be such officer of the City before said Bonds
shall have been authenticated or delivered by the Bond Registrar or issued by the City,
such Bonds may nevertheless be authenticated, delivered and issued and, upon such
authentication, delivery and issuance, shall be as binding upon the City as though said
person had not ceased to be such officer. Any Bond may be signed and attested on
behalf of the City by such persons who, at the actual date of execution of such Bond
shall be the proper officer of the City, although at the original date of such Bond such
persons were not such officers of the City.
Only such Bonds as shall bear thereon a Certificate of Authentication manually
executed by an authorized representative of the Bond Registrar shall be valid or
obligatory for any purpose or entitled to the benefits of this ordinance. Such Certificate
of Authentication shall be conclusive evidence that the Bonds so authenticated have
been duly executed, authenticated and delivered hereunder and are entitled to the
benefits of this ordinance.
Section 8. Application of Bond Proceeds. The Finance Director is hereby
authorized to create a fund or account (the "Project Fund"), and subaccounts therein as
necessary, for the purposes set forth in this section. Net proceeds of the Bonds shall
be deposited in the Project Fund in the amounts specified in the closing memorandum
prepared in connection with the issuance of the Bonds. Such proceeds shall be used to
pay and/or reimburse the City for the costs of the Project and to pay costs of issuance
of the Bonds. The Finance Director shall invest money in the Project Fund and the
subaccounts contained therein in such obligations as may now or hereafter be
permitted to cities of the State by law and which will mature prior to the date on which
such money shall be needed, but only to the extent that the same are acquired, valued
and disposed of at Fair Market Value. Upon completion of the Project, Bond proceeds
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(including interest earnings thereon) may be used for other capital projects of the City or
shall be transferred to the Debt Service Fund.
Section 9. Tax Covenants. The City will take all actions necessary to assure the
exclusion of interest on each series of Bonds from the gross income of the owners of
such Bonds to the same extent as such interest is permitted to be excluded from gross
income under the Code as in effect on the date of issuance of the Bonds, including but
not limited to the following:
(a) Private Activity Bond Limitation. The City will assure that the proceeds of the
Bonds are not so used as to cause the Bonds to satisfy the private business tests of
Section 141(b) of the Code or the private loan financing test of Section 141(c) of the
Code.
(b) Limitations on Disposition of Project. The City will not sell or otherwise transfer
or dispose of: (i) any personal property components of the Project other than in the
ordinary course of an established government program under Treasury Regulation
1.141-2(d)(4); or (ii) any real property components of the Project, unless it has received
an opinion of nationally recognized bond counsel to the effect that such disposition will
not adversely affect the treatment of interest on the Bonds as excludable from gross
income for federal income tax purposes.
(c) Federal Guarantee Prohibition. The City will not take any action or permit or
suffer any action to be taken if the result of such action would be to cause any of the
Bonds to be "federally guaranteed" within the meaning of Section 149(b) of the Code.
(d) Rebate Requirement. The City will take any and all actions necessary to
assure compliance with Section 148(f) of the Code, relating to the rebate of excess
investment earnings, if any, to the federal government, to the extent that such section is
applicable to the Bonds.
(e) No Arbitrage. The City will not take, or permit or suffer to be taken, any action
with respect to the proceeds of the Bonds which, if such action had been reasonably
expected to have been taken, or had been deliberately and intentionally taken, on the
date of issuance of the Bonds would have caused the Bonds to be "arbitrage bonds"
within the meaning of Section 148 of the Code.
(f) Registration Covenant. The City will maintain a system for recording the
ownership of each Bond that complies with the provisions of Section 149 of the Code
until all Bonds have been surrendered and canceled.
(g) Record Retention. The City will retain its records of all accounting and
monitoring it carries out with respect to the Bonds for at least three years after the
Bonds mature or are redeemed (whichever is earlier); however, if the Bonds are
redeemed and refunded, the City will retain its records of accounting and monitoring at
least three years after the earlier of the maturity or redemption of the obligations that
refunded the Bonds.
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(h) Compliance with Federal Tax Certificate. The City will comply with the
provisions of the Federal Tax Certificate with respect to each series of Bonds, which are
incorporated herein as if fully set forth herein. The covenants of this Section will survive
payment in full or defeasance of the Bonds.
(i) Bank Qualification. The Finance Director is hereby authorized to designate
each series of Bonds as "qualified tax-exempt obligations" under Section 265(b)(3) of
the Code for investment by financial institutions if the City does not reasonably expect
to issue more than $10,000,000 of qualified tax-exempt obligations in the calendar year
in which the Bonds are issued.
Section 10. Debt Service Fund and Provision for Tax Levy Payments. The
City hereby authorizes the creation of a fund or account to be used for the payment of
debt service on the Bonds (the "Debt Service Fund"). No later than the date each
payment of principal of or interest on the Bonds becomes due, the City shall transmit
sufficient funds, from the Debt Service Fund or from other legally available sources, to
the Bond Registrar for the payment of such principal or interest. Money in the Debt
Service Fund may be invested in legal investments for City funds, but only to the extent
that the same are acquired, valued and disposed of at Fair Market Value. Any interest
or profit from the investment of such money shall be deposited in the Debt Service
Fund.
The City hereby irrevocably covenants and agrees for as long as any of the Bonds
are outstanding and unpaid that each year it shall include in its budget and levy an
ad valorem tax upon all the property within the City subject to taxation in an amount that
will be sufficient, together with all other revenues and money of the City legally available
for such purposes, to pay the principal of and interest on the Bonds as the same shall
become due.
The City hereby irrevocably pledges that the annual tax provided for herein to be
levied for the payment of such principal and interest shall be within and as a part of the
property tax levy permitted to cities without a vote of the electorate, and that a sufficient
portion of each annual levy to be levied and collected by the City prior to the full
payment of the principal of and interest on the Bonds will be and is hereby irrevocably
set aside, pledged and appropriated for the payment of the principal of and interest on
the Bonds. The full faith, credit and resources of the City are hereby irrevocably
pledged for the annual levy and collection of such taxes and for the prompt payment of
the principal of and interest on the Bonds when due.
Section 11. Defeasance. In the event that the City, in order to effect the payment,
retirement or redemption of any Bond, sets aside in the Debt Service Fund or in another
special account, cash or noncallable Government Obligations, or any combination of
cash and/or noncallable Government Obligations, in amounts and maturities which,
together with the known earned income therefrom, are sufficient to redeem or pay and
retire such Bond in accordance with its terms and to pay when due the interest and
redemption premium, if any, thereon, and such cash and/or noncallable Government
Obligations are irrevocably set aside and pledged for such purpose, then no further
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payments need be made into the Debt Service Fund for the payment of the principal of
and interest on such Bond. The owner of a Bond so provided for shall cease to be
entitled to any lien, benefit or security of this ordinance except the right to receive
payment of principal, premium, if any, and interest from the Debt Service Fund or such
special account, and such Bond shall be deemed to be not outstanding under this
ordinance. The City shall give written notice of defeasance of the Bonds in accordance
with the Continuing Disclosure Certificate.
Section 12. Sale of Bonds.
(a) Bond Sale. The Council has determined that it would be in the best interest of
the City to delegate to each Designated Representative, for a limited time, the authority
to determine the method of sale for each series of Bonds and to approve the final
interest rates, maturity dates, redemption terms and principal maturities for each series
of Bonds. Each series of Bonds issued pursuant to this ordinance may be issued at the
same or different times so long as each series complies with the terms hereof. Each
Designated Representative is hereby authorized to approve the issuance, from time to
time, of one or more series of Bonds and to approve whether the Bonds of such series
shall be sold in a private placement to a Direct Purchaser or to an Underwriter through
a competitive public sale or a negotiated sale, as set forth below.
(b) Direct Purchase. If a Designated Representative determines that the Bonds of
a series are to be sold by private placement, a Designated Representative shall select
the Direct Purchaser that submits the proposal that is in the best interest of the City.
Direct Purchase Bonds shall be sold to the Direct Purchaser pursuant to the terms of a
Loan Agreement.
(c) Negotiated Bond Sale. If a Designated Representative determines that the
Bonds of a series are to be sold by negotiated public sale, a Designated Representative
shall select the Underwriter that submits the proposal that is in the best interest of the
City. Such Bonds shall be sold to the Underwriter pursuant to the terms of a Bond
Purchase Contract.
(d) Competitive Sale. If a Designated Representative determines that the Bonds
of a series are to be sold at a competitive public sale, a Designated Representative
shall: (1) establish the date of the public sale; (2) establish the criteria by which the
successful bidder will be determined; (3) establish the criteria for a good faith deposit;
(4) cause notice of the public sale to be given; and (5) provide for such other matters
pertaining to the public sale as he or she deems necessary or desirable. A Designated
Representative shall cause the notice of sale to be given and provide for such other
matters pertaining to the public sale as he or she deems necessary or desirable. Such
Bonds shall be sold to the Underwriter pursuant to the terms of a Certificate of Award.
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(e) Sale Parameters. Subject to the terms and conditions set forth in this Section
12, each Designated Representative is hereby authorized to approve the method of
sale and the final interest rates, aggregate principal amount, principal maturities, and
redemption rights for each series of Bonds in the manner provided hereafter so long as:
(1) the aggregate principal (face amount) amount of all Bonds issued from
time to time under this ordinance does not exceed $20,000,000;
(2) the final maturity date for each series of Bonds is no later than
December 1, 2038;
(3) the aggregate purchase price for each series of Bonds shall not be less
than 98% of the aggregate stated principal amount of such series of Bonds, excluding
any original issue discount; and
(4) the true interest cost for each series of Bonds (in the aggregate for such
series) does not exceed 4.5%.
Subject to the terms and conditions set forth in this section, each Designated
Representative is hereby authorized to execute the appropriate Sale Document on
behalf of the City. The signature of one Designated Representative shall be sufficient to
bind the City. Following the execution of a Sale Document, a Designated
Representative shall provide a report to the Council describing the final terms of the
Bonds sold pursuant to such Sale Document and approved pursuant to the authority
delegated in this section.
The authority granted to the Designated Representatives by this Section 12 shall
expire one year after the effective date of this ordinance. After such date additional
Council approval shall be necessary to sell and issue Bonds pursuant to the terms of
this ordinance.
(f) Delivery of Bonds; Documentation. Upon the passage and approval of this
ordinance and execution of the applicable Sale Document for a series of Bonds, the
proper officials of the City, including the Designated Representatives and the City Clerk,
are authorized and directed to undertake all action necessary for the prompt execution
and delivery of such series of Bonds to the purchaser thereof and further to execute all
closing certificates and documents required to effect the closing and delivery of the
Bonds in accordance with the terms of the applicable Sale Document. Such documents
may include, but are not limited to, documents related to a municipal bond insurance
policy delivered by an insurer to insure the payment when due of the principal of and
interest on all or a portion of such series of Bonds as provided therein, if such insurance
is determined by a Designated Representative to be in the best interest of the City.
Section 13. Preliminary and Final Official Statements. Each Designated
Representative is hereby authorized to deem final the preliminary Official Statement
relating to a series of Underwritten Bonds for the purposes of the Rule. Each
Designated Representative is further authorized to approve for purposes of the Rule, on
behalf of the City, the final Official Statement relating to the issuance and sale of such
series of Underwritten Bonds and the distribution of such final Official Statement
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pursuant thereto with such changes, if any, as may be deemed by him or her to be
appropriate.
Section 14. Undertaking to Provide Ongoing Disclosure.
(a) The City covenants to execute and deliver at the time of Closing of any
Underwritten Bonds a Continuing Disclosure Certificate. Each Designated
Representative is hereby authorized to execute and deliver a Continuing Disclosure
Certificate upon the issuance, delivery and sale of any Underwritten Bonds with such
terms and provisions as such officer shall deem appropriate and in the best interests of
the City.
(b) The City may agree to provide the Direct Purchaser certain financial or other
information and agree to such additional covenants as determined to be necessary by a
Designated Representative and as set forth in the Loan Agreement and approved by a
Designated Representative pursuant to Section 12.
Section 15. Lost, Stolen or Destroyed Bonds. In case any Bond or Bonds are
lost, stolen or destroyed, the Bond Registrar may authenticate and deliver a new Bond
or Bonds of like series, amount, date and tenor to the Registered Owner thereof if the
owner pays the expenses and charges of the Bond Registrar and the City in connection
therewith and files with the Bond Registrar and the City evidence satisfactory to both
that such Bond or Bonds were actually lost, stolen or destroyed and of his or her
ownership thereof, and furnishes the City and the Bond Registrar with indemnity
satisfactory to both.
Section 16. Severability; Ratification. If any one or more of the covenants or
agreements provided in this ordinance to be performed on the part of the City shall be
declared by any court of competent jurisdiction to be contrary to law, then such
covenant or covenants, agreement or agreements, shall be null and void and shall be
deemed separable from the remaining covenants and agreements of this ordinance and
shall in no way affect the validity of the other provisions of this ordinance or of the
Bonds. All acts taken pursuant to the authority granted in this ordinance but prior to its
effective date are hereby ratified and confirmed.
Section 17. Payments Due on Holidays. If an interest and/or principal payment
date for a series of Bonds is not a business day, then payment shall be made on the
next business day and no interest shall accrue for the intervening period.
Section 18. Corrections by City Clerk. Upon approval of the City Attorney and
Bond Counsel, the City Clerk is hereby authorized to make necessary corrections to
this ordinance, including but not limited to the correction of clerical errors; references to
other local, state or federal laws, codes, rules, or regulations; ordinance numbering and
section/subsection numbering; and other similar necessary corrections.
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Section 19. 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 , 2017.
ATTEST/AUTHENTICATED:
Christy O'Flaherty, MMC, City Clerk
APPROVED AS TO FORM BY:
Pacifica Law Group LLP, Bond Counsel
Attachments:
Exhibit A — Form of Bond
Exhibit B — Certificate (by City Clerk)
Allan Ekberg, Mayor
Filed with the City Clerk:
Passed by the City Council:
Published:
Effective Date:
Ordinance Number:
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Exhibit A
Form of Bond
[DTC LANGUAGE] [TRANSFER RESTRICTIONS]
UNITED STATES OF AMERICA
NO. $
STATE OF WASHINGTON .
CITY OF TUKWILA
LIMITED TAX GENERAL OBLIGATION BOND, 2018
INTEREST RATE:
REGISTERED OWNER:
PRINCIPAL AMOUNT:
MATURITY DATE CUSIP NO.
The City of Tukwila, Washington (the "City"), hereby acknowledges itself to owe and
for value received promises to pays to.,the Registered Owner identified above, or
registered assigns, on the Maturity;.. Date identified 'above, the Principal Amount
indicated above and to paYinterest thereon from the date Of .delivery, or the most recent
date to which interest; :has been.paid or duly provided for, at the Interest Rate set forth
above (the "Interest Rate"). Interest on this. bond shall accrue from its dated date until
paid and shall be computed per annum on the :principal amount outstanding on a 30/360
basis. Principal of and accrued 'interest on this bond shall be payable on the dates set
forth in the payment schedule attached hereto>The City of Tukwila, Washington (the
"City"), hereby acknowledges itself to owe and: for value received promises to pay to the
Registered Owner identified above, or registered assigns, on the Maturity Date
identified above, the Principal Amount indicated above and to pay interest thereon from
20 , or the,most recent date to which interest has been paid or duly
provided for until payment of this bond at the Interest Rate set forth above, payable on
June 1, 2018, and semiannually thereafter on the first days of each succeeding June
and December. Bothe:principal of and interest on this bond are payable in lawful money
of the United States of America. The fiscal agent of the State of Washington has been
appointed by the City as the authenticating agent, paying agent and registrar for the
bonds of this issue (the "Bond Registrar"). For so long as the bonds of this issue are
held in fully immobilized form, payments of principal and interest thereon shall be made
as provided in accordance with the operational arrangements of The Depository Trust
Company ("DTC") referred to in the Blanket Issuer Letter of Representations (the "Letter
of Representations") from the City to DTC.
A-1
57
The bonds of this issue are issued under and in accordance with the provisions of
the Constitution and applicable statutes of the State of Washington and Ordinance
No. duly passed by the City Council on , 2017 (the "Bond
Ordinance"). Capitalized terms used in this bond have the meanings given such terms
in the Bond Ordinance.
This bond shall not be valid or become obligatory for any purpose or be entitled to
any security or benefit under the Bond Ordinance until the Certificate of Authentication
hereon shall have been manually signed by or on behalf of the Bond Registrar or its
duly designated agent.
This bond is one of an authorized issue of bonds,. of like series, date, tenor, rate of
interest and date of maturity, except as to number and amount in the aggregate
principal amount of $ and is issued pursuant to the Bond Ordinance to
provide a portion of the funds necessary (a) to pay the cost of the acquisition of land
and construction of City maintenance and other City facilities and (b) to pay costs of
issuance.
[insert description of redemption or prepayment terms]
The City has [not] designated the Bonds as "qualified tax-exempt obligations" under
Section 265(b)(3) of the Code].
The City has irrevocably covenanted with the owner of this bond that it shall include
in its annual budget and levy taxes annually, within and a,; part of the tax levy permitted
to the City without a vote of the electorate, upon.all the. taxable property in the City
without limitation as to rate,:or amount ;and in amounts sufficient, together with other
money legally available therefor,., to pay the principal of and interest on this bond when
due. The full faith, --,Credit and, resources ,.of the City are irrevocably pledged for the
annual levy and collection of such, taxes and 'the prompt payment of such principal and
interest.
Thepledge of tax levies for;; payment of principal of and interest on the bonds may
be discharged prior to maturity of the bonds by making provision for the payment
thereof on the terms and conditions'set forth in the Bond Ordinance.
Owners of this bond do not have a security interest in particular revenues or assets
of the City. This bond is nota debt or indebtedness of the State of Washington, or any
political subdivision: thereof other than the City.
It is hereby certified :that all acts, conditions and things required by the Constitution
and statutes of the State of Washington to exist and to have happened, been done and
performed precedent to and in the issuance of this bond exist and have happened, been
done and performed and that the issuance of this bond and the bonds of this issue does
not violate any constitutional, statutory or other limitation upon the amount of bonded
indebtedness that the City may incur.
A-2
58
IN WITNESS WHEREOF, the City of Tukwila, Washington, has caused this bond to
be executed by the manual or facsimile signatures of the Mayor and the City Clerk and
the seal of the City to be imprinted, impressed or otherwise reproduced hereon as of
this day of , 20 ..
[SEAL]
ATTEST:
CITY OF TUKWILA, WASHINGTON
By
Allan,Ekberg, Mayor
Christy O'Flaherty, MMC, City Clerk
[FOR UNDERWRITTEN BONDS]
RTIFICATE OF AUTHENTICATION
Date of Authentication:
is bond is one of the bonds described in the within -mentioned Bond Ordinance
and is one of, the Limited Tax GeneralObligation Bonds, [ 1, of the City of Tukwila,
Washington, dated , 2018.
A-3
WASHINGTON STATE FISCAL
AGENT, as Bond Registrar
By
59
[FOR DIRECT PURCHASE BONDS]
REGISTRATION CERTIFICATE
This bond is registered in the name of the Registered Owner on the books of the
City, in the office of the Finance Director of the City (the "Bond Registrar"), as to both
principal and interest, as noted in the registration blank below. All payments of principal
of and interest on this bond shall be made by the City as provided in the Bond
Ordinance.
Date of
Registration
2018
Name and Address of Signature of
Registered Owner Bond Registrar
Finance Director
PAYMENT SCHEDULE
on d shall -bepayable as set forth in the following
A-4
60
Exhibit B
CERTIFICATE
I, the undersigned, City Clerk of the City Council of the City of Tukwila, Washington
(the "City"), DO HEREBY CERTIFY:
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 , 2017
as that ordinance appears in the minute book of the City; and the Ordinance will be in
full force and effect five (5) days after its passage and publication as provided by law;
and
2. That said meeting was duly convened and held in all respects in accordance
with law, and to the extent required by law, due and proper notice of such meeting was
given; that a legal quorum was present throughout the meeting and a legally sufficient
number of members of the Council voted in the proper manner for the passage of said
Ordinance; that all other requirements and proceedings incident to the proper passage
of said Ordinance have been fully fulfilled, carried out and otherwise observed; and that
I am authorized to execute this certificate.
3. That Ordinance No. has not been amended, supplemented or
rescinded since its passage and is in full force and effect and that I am authorized to
execute this certificate.
IN WITNESS WHEREOF, I have hereunto set my hand this day
of , 2017.
CITY OF TUKWILA, WASHINGTON
Christy O'Flaherty, MMC, City Clerk
61
62
City of Tukwila, Washington
Finance Committee Meeting
Public Works Shops Building
November 21, 2017
PFM Financial
CA) Advisors LLC
1200 Fifth Avenue
Suite 1220
Seattle, WA 98101
Susan Musselman
(360) 445-0238
Duncan Brown
(206) 858-5367
pfm
Overview
1) Background
2) Proposed LTGO Bonds, 2018
3) General Obligation Debt Capacity
4) Next Steps
Appendix: Outstanding Debt and Market Update
01
PFM
Background
• As part of its public safety facilities plan, the City anticipates construction of a new public works
shop
• Property parcels may be acquired as soon as January 2018
• Construction is projected to begin in Q3 or Q4 of 2019
• Anticipated to be financed in two phases:
• Phase One of this project includes site acquisition and soft costs through 2018 —
estimated to cost approximately $20 million
• Phase Two, beginning in 2019, would include additional soft costs and construction
costs through 2021
• The total cost of the project (and amount of Phase Two financing) will be dependent
on the final design and scope of the project
• The shops facility is anticipated to be used for both general government and utility purposes
2
LTGO Bond Ordinance
The City Council is being asked to adopt an ordinance that would authorize the issuance of
Limited Tax General Obligation (LTGO) debt within the following parameters:
Par amount not to exceed $20 million
Final maturity to be no later than December 1, 2038 (i.e., 20 year term)
True Interest Cost not to exceed 4.50%
Authorizes long-term financing (i.e., bonds) or short-term bank financing, if proceeds are
required sooner
The authority granted to the Designated Representative shall expire one year after the
effective date of the Bond Ordinance
If authorized, proceeds of the 2018 LTGO Bonds would be used to certain parcels, including
through eminent domain, and construct maintenance and other City facilities
LTGO Bonds will be secured by the City's full faith and credit and non -voted property taxing
authority
3
Thousands
a)
v
Proposed LTGO Bonds, 2018 - City Shops - Phase 1
The chart below summarizes the proposed
long-term bond structure and estimated
annual debt service
The bonds would be structured as "interest
only" through the construction period (i.e.,
through 2021)
$2,000
$1,800
$1,600
$1,400
$1,200
$1,000
$800
$600
$400
$200
$0
Principal
•Interest
eie
tip\c) rorp
Estimated Sources and Uses of Funds
Par Amount
Original Issue Premium
Total Sources
Project Funds
Issuance Costs
Total Uses
$ 17,325,000
2,917,481
$ 20,242,481
$ 20,003,881
238,600
$ 20,242,481
Estimated 2018 LTGO Bonds Debt Service
1,611 tisia 1,61,3 roPc iso 1,6),(3 i2 - # re\ `L,33 tiO3l), 1,0 fek) 1,661 (00
Note: Rates as of 11/9/2017 plus 50 basis point cushion
Assumes $100,000 Cost of Issuance and $8/Bond Underwriters Discount
4
Calculation of Debt Capacity
•The table below summarizes the City's non -voted and total general obligation debt capacity, as limited
by statute
Non -Voted General Obligation Debt Capacity
2016 Assessed Value for 2017 Tax Year
Non -Voted Debt Capacity (1.5% of AV)
Less: Outstanding Non -Voted Debt
Less: 2018 LTGO Bonds (Estimated)
$5,763,649,829
86,454,747
(35,376,704)
(17,325,000)
Remaining Non -Voted Debt Capacity
Total General Obligation Debt Capacity for General Municipal Purposes
2016 Assessed Value for 2017 Tax Year
Total Debt Capacity (2.5% of AV)
Less: Outstanding Voted Debt
Less: Outstanding Non -Voted Debt
Less: 2018 LTGO Bonds (Estimated)
33,753,043
$5,763,649,829
144,091,246
(32,990,000)
(35,376,704)
(17,325,000)
Remaining Total Debt Capacity for General Municipal Purposes 58,399,542
5
(.0
PFM
2018 LTGO Bonds = Next Steps
Activity Date
Finance Committee Meeting - Consideration of Bond Ordinance (5:30 p.m.) 11/21
Committee of the Whole - Consideration of Bond Ordinance (7:00 p.m.) 11/27
City Council Meeting - Consideration of Bond Ordinance (7:00 p.m.) 12/4
Bond Ordinance Published 12/7
Bond Rating Agency Call Week of 1/8
Bond Sale 1/25
Bond Closing - funds delivered 2/8
6
Appendix: Outstanding Debt and Market Update
Outstanding Limited Tax General Obligation Debt
• As of October 2017, the City has $35,376,704 of non -voted general obligation debt and $32,990,000 of
voted general obligation debt outstanding
$6
0
2 $5
Annual Non -Voted General Obligation Debt Service
LTGO Bonds, 2017 LTGO Bonds, 2015
LTGO Bond, 2017 (Taxable) 0 SCORE 2009B (BABs)
SCORE 2009A LTGO Bond, 2014 (Taxable)
LTGO Bond, 2013 LTGO Refunding Bonds, 2011
LTGO Bonds, 2010B (BABs) E LTGO Ref Bonds, 2008
itr• koN
c\i
0000000000000000
NNNNNNN(NiNNNNNNevN
9
W
Outstanding Long -Term General Obligation Debt
LTGO Refunding Bonds, 2008
LTGO Bonds, 2010B (Taxable BABs
— Direct Payment)
LTGO Refunding Bonds, 2011
LTGO Bond, 2013
LTGO Bond, 2014 (Taxable)
LTGO Bonds, 2015
LTGO Bonds, 2017
LTGO Bond, 2017 (Taxable)
Subtotal
SCORE Bonds, 2009A
SCORE Bonds, 2009B (Taxable
BABs- Direct Payment)
Subtotal
Total — LTGO
UTGO Bonds, 2016
Subtotal
Total — General Obligations
$2,165,000
3,575,000
3,360,000
562,104
3,560,000
5,605,000
8,180,000
2,276,000
$29,283,104
220,400
5,873,200
6,093,600
$35,376,704
32,990,000
$3Z990,000
$68,366,704
n/a
6/1/2020
12/1/2021
n/a
12/1/2019
6/1/2025
6/1/2027
anytime
1/1/2020
1/1/2020
Advance refund LTGO Bonds, 1999
Acquisition & construction of Southcenter
Parkway improvements; emergency
.re.aredness facilities, fixtures, tech.
Advance refund LTGO Bonds, 2003A
Park district facility im. rovements (.00l)
Tu wi a Internationa Bou evar. — property
.cquisition
Pay and reimburse the City for the cost of certain
road construction and related im.rovements
Pay or reimburse the City for the cost of certain
road construction and related im.rovements
Tukwila International Boulevard — property
.c. uisition
SCORE Facility
6.00%
3.96 — 5.41%*
3.00 — 4.00%
3.00-4.00%
0.85 — 4.86%**
2.25 — 3.00%
3.00 — 3.50%
2.60 - 3.00%
4.50 — 5.00%
5.00 — 6.616%*
12/1/2019
12/1/2024
12/1/2023
12/1/2022
12/1/1934
12/1/2035
12/1/2037
12/1/2022
1/1/2022
1/1/2039
Assured
Guaranty
n/a
n/a
n/a
n/a
n/a
n/a
n/a
n/a
n/a
12/1/2026
Pay and reimburse the City for the cost of
onstructing fire stations and acquiring related
irefighting apparatus/equipment, constructing a
'ustice center
4.50 — 5.00%
12/1/2036
n/a
As of November 10, 2017.
* Build America Bonds coupons are shown as gross rates, not reflecting Federal subsidy (35% prior to sequestration).
** A portion of the 2014 Bonds will have interest rates reset every five years, based on the Five Year Advance Fixed Bullet Rate, as published°
by the Seattle Federal Home Loan Bank.
Market Update
4.50%
4.00%
3.50%
3.00%
2.50%
2.00%
1.50%
1.00%
0.50%
5.00%
4.50%
4.00%
3.50%
3.00%
2.50%
2.00%
1.50%
�0�� �0\�
<<e„o
�0\tt �0��
� �aJ PJB ,
Municipal Market Data (MMD) "AA" GO Yield Curve
2016 Bonds (11/30/2016)
3 Years Ago (10/6/2014)
Current (11/10/2017)
2015 Bonds (4/28/2015)
2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 26 27 28 29 30
Current (11/10/2017) ®®2016 Bonds (11/30/2016) 2015 Bonds (4/28/2015) 3 Years Ago
Bond Buyer 20 -Bond GO Index vs. 30 -Year Treasury
Last Three Years
ti�1�4'
PJB o�, < e`o
•?C) o�, <(e5) 4aJ PJB
20 -Bond GO Index 30 -Year Treasury
11
Market Update = Interest Rate Forecasts
- Most market participants expect interest rates to rise modestly through the end of 2017
and 2018
• The chart below shows consensus forecasts from numerous financial institutions
Quarterly Historical and Forecasted Interest Rates
3.50%
3.00%
-0 2.50%
4)
>- 2.00%
1.50%
1.00%
0.50%
0.00%
01
PFM
Historical
Projected
"
Q1 16 Q2 16 Q3 16 Q4 16 Q1 17 Q2 17 Q3 17
End of Quarter
Federal Funds Rate (Upper Bound)
---2-Year US Treasury Note
=
Q4 17
Q1 18
Q2 18
3 -Month Libor
10 -Year US Treasury Bond
Source: Bloomberg, Composite UST forecast represents at /east 50 banks.
Q3 18
Q4 18
12
76
TO:
City of Tukwila
INFORMATIONAL MEMORANDUM
Mayor Ekberg
Finance Committee
Allan Ekberg, Mayor
FROM: Peggy McCarthy, Finance Director
BY: Sherry Wright, Senior Fiscal Coordinator
DATE: November 21, 2017
SUBJECT: Revisions to Tukwila Municipal Code 3.48 - Commercial Parking Tax
ISSUE
Recommendation for Council to modify TMC 3.48 to (1) increase the commercial parking tax rate,
and (2) add a penalty for late payment.
BACKGROUND
In 1998, the Tukwila City Council adopted Ordinance 1852 which provided for a 5 percent tax to
be levied on gross revenues generated by commercial parking lots in the city. According to
Municipal Research & Services Center (MRSC), Tukwila is one of only six entities in Washington
that currently levies a tax on commercial parking. The common feature of cities that levy this tax
is proximity to a major transportation system, such as an airport or ferry terminal.
TMC requires that parking taxes be remitted on or before the last day of the month following the
month during which the taxes were collected. However, the municipal code does not outline a
penalty for late payments, which provides no incentive for payments to be made on time.
ANALYSIS
The 5% commercial parking tax has been in effect since 1998 without a rate increase. Staff
recommends increasing the levy from 5% to 15%. This increase will keep the rate comparable to
tax rates in surrounding jurisdictions (see Attachment A). In addition, over 50% of the parking
taxes in Tukwila were paid late. Implementing a 10% late fee would encourage businesses to
submit taxes on time and provide the City with a more predictable cash flow, and bring the parking
tax penalty in line with the penalties assessed for other city taxes (See Attachment C).
FINANCIAL IMPACT
Attachment B highlights the impacts to revenue if the City were to increase the tax rate from 5%
to 15%. Currently, the 5% rate results in just under $215,000 in revenue per year. A rate
increase to 15% would result in approximately $643,000, or $428,000 in additional revenue,
assuming all other factors remain the same. The late fee is intended to encourage timely
payment of taxes, and for purposes of discussion, it is assumed that adding a late payment
penalty will not result in additional revenues.
In accordance with State law, parking tax revenues are currently deposited into Fund 104,
Arterial Street Fund, and are restricted for transportation purposes. Any additional revenue
received based on a change in city code would continue to be restricted for the same purpose
and would be designated for transportation projects that currently have unidentified funding.
77
INFORMATIONAL MEMO
Page 2
RECOMMENDATION
Council is being asked to approve the parking tax ordinance and fee resolution, and consider this
item at the November 27 Committee of the Whole meeting and subsequent December 4 Regular
Meeting.
ATTACHMENTS
A. Comparison of Cities Levying Commercial Parking Tax
B. Financial Implications of Amending TMC 3.48
C. Comparison of Tukwila Taxes and Late Fees
D. Draft ordinance repealing Ordinance 1852 and reenacting TMC Chapter 3.48
E. Resolution adding appeal fee
78
ATTACHMENT A
Comparison of Cities Levying Commercial Parking Tax
Entity Levying Tax Tax Rate Tax Due Date
__....,�...... , ..�� . �_� May be monthly, quarterly,
or annual
Each muncipality may
develop own rules
<30 days = 10%
31-60 days = 15%
>61 days = 20%
8% or 25% (depends on
location)
5% - 29% (varies according to
RCW 82.32.090)
W:\1Users\Sherry\Finance Committee\Commercial Parking Tax -City Comparison A - City Comparison
O
O
ATTACHMENT B
Financial Implications of Amending TMC 3.48
tD
a-1
0
jan
feb
1211111111111
apr
may
jul
aug
sep
oct
nov
dec
total
CURRENT
Tax Paid On -Time
3,495
9,038
4,535
14,725
6,882
6,240
7,304
7,599
7,621
6,384
18,436
8,322
100,580
Tax Paid Late
10,964
9,549
4,252
10,872
14,411
11,624
11,379
10,167
10,292
10,011
10,230
Late Fee(n/a)
113,751
Total
14,459
18,587
8,787
25,597
21,293
17,864
18,683
17,766
17,914
16,395
28,666
8,322
214,331
PROPOSED
Tax Rate
Late Fee
= 15%
214,331
2015
193,486
PROPOSED
=1010
Tax Paid On -Time
Tax Paid Late
Late Fee (10%) s
Total
.D
C
N
jan
43,377
43,377
feb
55,762
55,762
mar
26,360
26,360
apr
76,791
-
-
76,791
63,878
-IIIIIIII
63,878
®
53,591
-
-
53,591
jul
56,049
-
-
56,049
aug
53,297
-IIIIIIIIIIIIIII
53,297
sep
53,741
-Till
-
53,741
oct
49,184
49,184
nov
85,999
85,999
dec
24,966
-
-
24,966
total
$ 642,994
$ -
$ -
$ 642,994
1 It is assumed that taxes will be paid on time if a late payment penalty is enacted.
W:\lUsers\Sherry\Finance Committee\Commercial Parking Tax -City Comparison
Prior
Collections
2016
214,331
2015
193,486
2014
143,535
2013
155,860
2012
149,081
op
N
ATTACHMENT C
Comparison of Tukwila Taxes & Late Fees
3.08
ADMISSIONS &
ENTERTAINMENT TAX
COMMERCIAL c
PARKING TAX
3.20
UTILITY TA)
gas, telephone, or
cable tv)
SOLID WASTE UTILITY
3.48
3.50
1997
3.51
3.56
3.60
1995
1998
2002
From 2% to 20%
depending on type
of activity
2009
1986
5%
1999
5%
6% (2007 +)
5% (2005-2006)
4% (2003-2004)
6%
0.25%
Quarterly
0.25%
Monthly
Monthly
Monthly (small
entitles may file
annually)
Monthly
Monthly
Monthly
On or before last day of
month following quarter in
which tax was collected
On or before last day of
month following month in
which tax was collected
On or before last day of
month following month in
which tax was collected
On or before last day of
month following month in
which tax was collected
On or before last day of
month following month in
which tax was collected
Within 30 days of sale
15 days late
Within 30 days of sale
1 day late
n/a
15 days late
15 days late
1 day late
1 day late
10% per month
10% per month
n/a
10% per month
10% per month
1% interest per
month from time of
sale until date of
payment
1% interest per
month from time of
sale until date of
payment
W:\lUsers\Sherry\Finance Committee\Commercial Parking Tax -City Comparison
C - All City Taxes
84
AN ORDINANCE OF THE CITY COUNCIL OF THE CITY OF
TUKWILA, WASHINGTON, REPEALING ORDINANCE NO.
1852; REENACTING TUKWILA MUNICIPAL CODE CHAPTER
3.48, "COMMERCIAL PARKING TAX," RELATING TO THE
LOCAL OPTION TRANSPORTATION TAX TO INCREASE THE
TAX RATE AND ADOPT A PENALTY FOR LATE PAYMENT;
PROVIDING FOR SEVERABILITY; AND ESTABLISHING AN
EFFECTIVE DATE.
WHEREAS, pursuant to RCW 82.80.030, the City of Tukwila is authorized to fix and
impose a parking tax on all persons engaged in a commercial parking business within its
respective jurisdiction; and
WHEREAS, in 1998 the Tukwila City Council adopted Ordinance No. 1852, pursuant
to RCW 82.80.030, to levy a 5% parking tax on all commercial parking businesses within
the City; and
WHEREAS, the City Council has determined that a rate increase is warranted as the
City has a substantial need to increase tax revenue in order to discharge the expected
expenses and obligations of the City, and based on review of neighboring cities' tax rates,
and noting that the current tax rate has not been altered since its adoption 20 years ago;
and
WHEREAS, in addition to a rate increase, the Council desires the adoption of a
penalty for late payment, as the timely payment of the tax is difficult to enforce absent a
late penalty and nearly 50% of parking taxes in 2016 were remitted to the City after the
due date, and it is standard practice for City taxes to include a penalty for late payment in
order to provide stability for the City's budgeting purposes; and
WHEREAS, the City held a duly noticed public hearing on this tax increase on
November 27, 2017;
NOW, THEREFORE, THE CITY COUNCIL OF THE CITY OF TUKWILA,
WASHINGTON, HEREBY ORDAINS AS FOLLOWS:
W: Word Processing\Ordinances\Commercial Parking Tax amended -TMC 3.48 11-8-17
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Page 1 of 6
85
Section 1. Repealer. Ordinance No. 1852, as codified at Tukwila Municipal Code
Chapter 3.48, is hereby repealed in its entirety.
Section 2. TMC Chapter 3.48 Reenacted. Tukwila Municipal Code (TMC) Chapter
3.48 is hereby reenacted to read as follows:
CHAPTER 3.48
COMMERCIAL PARKING TAX
Sections:
3.48.010 Definitions
3.48.020 Exemptions
3.48.030 Local Option Transportation Tax Imposed
3.48.040 Tax in Addition to Other License Fees or Taxes
3.48.050 Exempt Vehicles
3.48.060 Taxes Collected by Business Operators
3.48.070 Late Penalty
3.48.080 Use of Fund
3.48.090 Application Liability and Reporting
3.48.100 Violation/Penalty
3.48.110 Appeal Procedure
Section 3. TMC Section 3.48.010 is hereby reenacted to read as follows:
3.48.010 Definitions
The following definitions shall apply throughout this chapter:
1. "Commercial parking business" means the ownership, lease, operation or
management of a commercial parking lot in which fees are charged for parking.
2. "Commercial parking" means any transaction or arrangement whereby a
vehicle is parked and a fee is charged for parking or allowing the vehicle to be parked.
Commercial parking shall include instances where a fee is charged specifically
for the parking of a vehicle. This shall include any business which uses part or all of its
area to park vehicles for a fee where no other service, lodging or business is being
provided or conducted in conjunction with the parking of the vehicle.
Commercial parking shall also include instances such as when a guest of a hotel,
motel or other lodging establishment is allowed to park or leave his/her vehicle before or
after his or her lodging or business stay there so that, for a fee, the guest's vehicle is
parked at the hotel, motel or other lodging establishment during days when the guest is
no longer staying there.
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86
Page 2 of 6
Section 4. TMC Section 3.48.020 is hereby reenacted to read as follows:
3.48.020 Exemptions
The following exemptions to the commercial parking tax are allowed:
1. Local employee parking, with parking spaces provided or reserved for use
by an employee who works within the City, where the employee parks his or her vehicle
in connection with his or her employment, without regard to whether arrangements or
payment for the parking is made by the employee or by his or her employer.
2. Apartments and condominiums, where parking is provided in conjunction
with arrangements for residential living spaces.
3. Offices, retail establishments, warehouses and industrial buildings,
where parking is provided in association with tenant arrangements for the use of such
facilities.
Section 5. TMC Section 3.48.030 is hereby reenacted to read as follows:
3.48.030 Local Option Transportation Tax Imposed
There is hereby levied a special local option transportation tax to be imposed in
connection with commercial parking businesses within the City. The tax shall be imposed
at the rate of% 15% of the gross revenues generated by non-exempt commercial
parking charges and fees.
Section 6. TMC Section 3.48.040 is hereby reenacted to read as follows:
3.48.040 Tax in Addition to Other License Fees or Taxes
The tax levied under this chapter shall be in addition to any license fee or tax imposed
or levied under any law, statute or ordinance whether imposed or levied by the City, State
or other governmental entity or political subdivision.
Section 7. TMC Section 3.48.050 is hereby reenacted to read as follows:
3.48.050 Exempt Vehicles
The tax shall not be levied on vehicles with official State disabled person decals;
government vehicles which are exempt from tax, and tax-exempt carpool vehicles.
Section 8. TMC Section 3.48.060 is hereby reenacted to read as follows:
3.48.060 Taxes Collected by Business Operators
Taxes imposed herein shall be collected by the operators of the commercial parking
businesses, and shall be due and payable to the City in monthly installments. The
operators of the commercial parking businesses shall remit to the City the local option
transportation taxes collected on or before the last day of the month following the month
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Page 3 of 6
87
during which the taxes were collected. The City shall be authorized to review and inspect
financial records involving activities of businesses which are taxable by this tax, at least
quarterly each year.
Section 9. TMC Section 3.48.070 is hereby established to read as follows:
3.48.070 Late Penalty
If a Commercial Parking Business subject to this tax fails to pay any tax required by
this chapter within 15 days after the due date thereof, there shall be added to such tax a
penalty of 10% of the tax per month for each month overdue, which shall be added to the
amount of the tax due
Section 10. TMC Section 3.48.080 is hereby reenacted to read as follows:
3.48.0-70080 Use of Fund
All revenues, assessments and other charges generated and collected as local option
transportation taxes shall be placed in the City's 104 Bridge and Arterial Street Fund, to
be used for transportation purposes within the Transportation Element of the Tukwila
Comprehensive Transportation Plan, in accordance with RCW 82.80.070; and to be used
for administration of the tax, including those activities of the City in keeping and tracking
records, financial reports and other documents, reviewing filings and compiling reports by
commercial parking businesses, and other activities involved in collection and
enforcement of the tax.
Section 11. TMC Section 3.48.090 is hereby reenacted to read as follows:
3.48.080090 Application and Liability and Reporting
A. Any commercial parking business shall procure from the City an annual
a conspicuous place in the office of such a business. Annual renewals will be provided
without a fee.
of such tax.
A. All officers, directors and managers of any organization or association operating
a Commercial Parking Business, including owners and lessees of a parking facility used
for Commercial Parking, shall be jointly and severally liable for the payment of said tax,
penalties, and any fine imposed under this chapter
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Page 4 of 6
GB. The Finance Director shall have the power to adopt rules and regulations not
inconsistent with the terms of this chapter for carrying out and enforcing the payment,
collection and remittance of the tax herein levied; and a copy of the rules and regulations
shall be on file and available for public examination in the City Clerk's officoCity of Tukwila
Finance Department.
Section 12. TMC Section 3.48.100 is hereby reenacted to read as follows:
3.48.490100 Violation/Penalty
It is unlawful for any person, firm or corporation engaged in a CGommercial bParking
bBusiness to fail or refuse to collect and remit parking taxes as required by the provisions
of this chapter or to gain for himself or herself some advantage or benefit from the tax,
whether direct or indirect. Any such violation shall constitute a misdemeanor and shall
be punishable by a fine not to exceed $1,000 and/or by imprisonment not exceeding 90
days. Any such fine shall be in addition to any tax and penalties required.
Section 13. TMC Section 3.48.110 is hereby established to read as follows:
3.48.1-00110 Appeal Procedure
A. Any person aggrieved by the amount calculation of the tax determined to be due
to the City pursuant to this chapter may appeal to the Finance Director or his/her designee
from such determination by filing a written notice of appeal with the City Clerk within 20
calendar days from the date on which such person was given notice of the tax. The notice
of appeal must state the grounds for appeal, including a detailed explanation of why the
amount of the tax was incorrect. The Finance Director or designee shall, as soon a�
the date of the hearing review the basis for the appeal, and may request clarification from
the appellant. After the review is complete, the Finance Director or designee shall issue
an administrative decision that may sustain or modify the amount of tax owed. Notice of
the administrative decision shall be sent to the appellant by certified mail within 10 days
of issuance.
B. The appellant, if aggrieved by the decision of the Finance Director or designee,
may then appeal to the City Hearing Examiner within 20 calendar days of the date of the
administrative decision is mailed to the appellant. The notice of appeal must state the
grounds for appeal, including a detailed explanation of why the administrative decision is
incorrect. The notice of appeal must be accompanied by an Appeal Fee in accordance
with the fee schedule adopted by resolution of the City Council.
C. Upon timely filing of a notice of appeal, the Finance Director shall schedule a
hearing on the appeal before the City's Hearing Examiner. The hearing shall be
conducted no later than 30 days from the date of the notice of appeal, unless an extension
is agreed to by the appellant or otherwise ordered by the Hearing Examiner for good
cause shown. Notice of the hearing and the appeal shall be given to the appellant by
certified mail at least five days prior to the date of the hearing.
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D. The hearing shall be governed by the City of Tukwila Hearing Examiner's
procedural rules. The hearing shall be de novo. The decision of the City's Hearing
Examiner or other hearing body shall be based upon a preponderance of the evidence. The
burden of proof shall be on the appellant. The Hearing Examiner or other hearing body
may affirm, reverse or modify the Finance Director's decision.
E. Within 20 business days, excluding holidays recognized by the City of Tukwila,
from the date of the hearing on an appeal under this section, the Hearing Examiner shall
issue a written decision which shall set forth the reasons therefor.
Section 14. 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 15. 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 16. 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 on January
1, 2018 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 , 2017.
ATTEST/AUTHENTICATED:
Christy O'Flaherty, MMC, City Clerk
APPROVED AS TO FORM BY:
Rachel B. Turpin, City Attorney
Allan Ekberg, Mayor
Filed with the City Clerk:
Passed by the City Council:
Published:
Effective Date:
Ordinance Number:
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A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF TUKWILA,
WASHINGTON, ADOPTING A FEE SCHEDULE FOR TUKWILA
MUNICIPAL CODE CHAPTER 3.48, "COMMERCIAL PARKING TAX."
WHEREAS, the City Council intends to remove specific amounts for fees and
charges from the Tukwila Municipal Code in favor of a City-wide fee resolution; and
WHEREAS, the updated commercial parking tax ordinance references an appeal
process, including an appeal fee, which will be included as part of the City-wide fee
resolution;
NOW, THEREFORE, THE CITY COUNCIL OF THE CITY OF TUKWILA,
WASHINGTON, HEREBY RESOLVES AS FOLLOWS:
Section 1. Fee Schedule. The following fee shall be charged to appellants by the
City of Tukwila Finance Department to appeal a commercial parking tax decision:
Type of appeal
Fee
Hearing Examiner Appeal Fee
TMC 3.48.110
$250.00
Section 2. Effective Date. The fee schedule contained in this resolution shall be
effective as of January 1, 2018.
PASSED BY THE CITY COUNCIL OF THE CITY OF TUKWILA, WASHINGTON,
at a Regular Meeting thereof this day of , 2017.
ATTEST/AUTHENTICATED:
Christy O'Flaherty, MMC, City Clerk Dennis Robertson, Council President
APPROVED AS TO FORM BY:
Filed with the City Clerk:
Passed by the City Council:
Resolution Number:
Rachel B. Turpin, City Attorney
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City of Tukwila
Allan Ekberg, Mayor
INFORMATIONAL MEMORANDUM
TO: Finance Committee
FROM: Mia Navarro, Community Engagement Manager
CC: Mayor Ekberg
DATE: 11-13-2017
SUBJECT: Equity Policy Resolution
ISSUE
The City of Tukwila has a strong commitment to equity in City government, and they desire that
all residents, visitors and employees have the opportunity to reach their full potential. To that
end, the Mayor's Office has initiated the development of a DRAFT City Equity Policy to guide
the work of City employees.
BACKGROUND
Early in 2016, the Equity and Social Justice Commission researched the equity policies and
equity work of other jurisdictions, and came up with a list of components for a draft equity policy
for the City of Tukwila. Community Engagement Manger, Mia Navarro, convened an ad hoc
Equity Policy Committee made up of City employees to do more research, and turn those
components into a draft equity policy. Representatives from almost every department attended
at least one meeting during the several month-long process. In August, staff presented the draft
policy to Council and got feedback. Staff then presented the policy to staff in all City
departments during regularly scheduled staff meetings, as well as specially scheduled
meetings. As a result, some minor edits have been made to the policy. The Equity and Social
Justice Commission has approved these edits. Staff is now seeking passage of a resolution
approving the City Equity Policy.
Once the resolution is passed, the implementation and evaluation team will convene to begin
planning for implementation.
FINANCIAL IMPACT
There is no financial impact at this time. The financial impact will be determined during the
implementation planning phase.
RECOMMENDATION
The Council is being asked to approve the resolution and consider this item at the November
27, 2017 Committee of the Whole meeting and subsequent December 4, 2017 Regular Meeting.
ATTACHMENTS
Equity Policy Resolution
Equity Policy 11-02-2017
93
94
A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF
TUKWILA, WASHINGTON, ADOPTING A CITY EQUITY POLICY.
WHEREAS, the City Council recognizes the great value of diversity of culture,
background, race, language, ability, gender, and other factors; and
WHEREAS, the City Council recognizes that societal, environmental, and legal factors,
both historic and present day, have resulted in inequitable access to opportunities and
services for some individuals and groups of people; and
WHEREAS, the City Council is committed to ensuring fair and equitable access to City
services, employment and other core functions; and
WHEREAS, an equity policy provides guidance to the community, staff and elected
officials as to how we work together towards economic, civic and social justice; and
WHEREAS, the City Council agreed to these priorities at the City Council Meeting on
December 4, 2017;
NOW, THEREFORE, THE CITY COUNCIL OF THE CITY OF TUKWILA,
WASHINGTON, HEREBY RESOLVES AS FOLLOWS:
The Tukwila City Council has identified the need for an equity policy to continue the City
of Tukwila's commitment to being an inclusive community that provides equal access to all
City services. The City of Tukwila Equity Policy, attached hereto as Attachment A, is hereby
adopted.
PASSED BY THE CITY COUNCIL OF THE CITY OF TUKWILA, WASHINGTON, at a
Regular Meeting thereof this day of , 2017.
ATTEST/AUTHENTICATED:
Christy O'Flaherty, MMC, City Clerk Dennis Robertson, Council President
APPROVED AS TO FORM BY:
Rachel B. Turpin, City Attorney
Attachment A: City of Tukwila Equity Policy
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Filed with the City Clerk:
Passed by the City Council:
Resolution Number:
Page 1 of 1
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96
CITY OF TUKWILA
EQUITY POLICY
2017
I. BACKGROUND AND OVERVIEW
The Mayor, Council, and staff of the City of Tukwila have a strong commitment to equity in city
government, and they desire that all residents, visitors and employees have the opportunity to
reach their full potential. Societal, environmental and legal factors, both historic and present-day,
have resulted in inequitable access to opportunities and services for some individuals and groups of
people. These include but are not limited to:
• Age
• Physical and/or Cognitive Disability
• Economic Status
• Gender
• Gender Identity
• National Origin/Language
• Race and/or Ethnicity
• Religion
• Sexual Orientation
The City of Tukwila values its rich diversity. The majority of people who live in Tukwila are people of
color, and 40% were born in a country other than the United States. More than 80 languages are
spoken in our schools, and 50% of Tukwila households speak a language other than English at home.
We benefit from friends and neighbors with different perspectives and cultures, the variety of
businesses owned by immigrants and refugees, and the community forged when we share foods
from around the world.
While we celebrate Tukwila, we recognize that many in our community do not have equitable access
to services, government, education, employment and other opportunities toward a better future.
More than 20% of our population does not have health insurance, and Tukwila's median household
income is 40% of King County's. 23% of Tukwila households live below the poverty line, and more
than 10% of students in the Tukwila School District currently experience homelessness.
We recognize the role that government can play in breaking down barriers to equitable access to
opportunities. The City's Strategic Plan, adopted in 2012, provides us the guideposts for our work
on behalf of our residents, businesses and guests, and emphasizes partnerships and collaboration.
One of the goals --A Solid Foundation for All Tukwila Residents -- clearly calls for equitable access to
opportunity for Tukwila residents and serves as the foundation of this equity policy.
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97
Though we fully acknowledge we have more work to do, the City has made many strides toward
equity. We are proud of our successes and, in some cases, our leadership around identifying and
implementing policies and programs to promote equity. We also realize that we as a city
government have a much longer journey to take in our efforts to be truly equitable in the delivery of
all City services.
II. PURPOSE
The purpose of this policy is to provide guidance to City elected officials, staff, boards and
commissions, partners, residents, businesses and guests on how the City of Tukwila will actively
promote equitable access to opportunities and services.
III. DEFINITION OF EQUITY
Equity: Eliminating systemic barriers and providing fair access to programs, services and
opportunities to achieve social, civic and economic justice within the City of Tukwila.
IV. POLICY GOALS
In order to achieve equitable access to opportunities and services in the City of Tukwila, the City
adopts the following goals.
1. Our City workforce reflects our community.
The City will identify strategies around recruitment and hiring, and personnel policies that
provide equitable opportunities for existing employees, and support City's long-term goal that its
workforce reflect the evolving make-up of the community.
2. Community outreach and engagement is relevant, intentional, inclusive, consistent and
ongoing. The City often has important information to share with the community, and often seeks
dialogue with the community. The City will create a community outreach and engagement
toolkit to enable inclusive public engagement that all departments will use when seeking
community participation.
3. All residents and visitors receive equitable delivery of City services.
The City will identify strategies that facilitate equitable access to current and future City services
and facilities, regardless of race/ethnicity, language, ability, gender, age, family status,
geography, and mode of transportation.
4. City government is committed to equity in the decision-making process.
The City will identify strategies to facilitate equitable access to decision-making, where the
decisions themselves -- and the process and context in which they are made -- are transparent.
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98
5. Equity serves as a core value for all long-term plans moving forward.
The City will develop and implement an equity toolkit for City staff, consultants, contractors, and
partners that will provide guidance for the equitable physical development of the city, and other
activities. This goal applies to plans such as but not limited to the Comprehensive Plan,
transportation, infrastructure, strategic plans, etc.
6. The City will build capacity around equity within City government and the broader
community. The City will resource this policy through activities such as but not limited to regular
trainings and workshops, both internal and public, and establishing an Equity Policy
Implementation Committee.
V. IMPLEMENTATION
The City will be accountable for assessing a baseline, developing an implementation plan, and
reporting measurable progress in meeting each of these goals.
1. Equity Policy Implementation and Evaluation Committee
The City will establish a committee that will be responsible for setting baselines, developing the
implementation plan, and reporting measurable progress in meeting the goals of this policy. The
implementation plan should specify staff leads responsible for key elements of the work, and
include how the work will be distributed throughout the agency.
2. Equity and Social Justice Commission
The Equity and Social Justice Commission will monitor the work of the Implementation and
Evaluation Committee, and provide information to the committee, as well as the Council as to
the progress of the policy's implementation.
3. Timeline
The timeline for developing the implementation plan is one year from the adoption of this
policy.
Page 3 of 3
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100
City of Tukwila
Allan Ekberg, Mayor
INFORMATIONAL MEMORANDUM
TO: Finance Committee
FROM: Stephanie Brown, Human Resources Director
CC: Mayor Ekberg
DATE: November 15, 2017
SUBJECT: Non -Represented Employee Wages for 2018
ISSUE
Non -Represented Employee Wage Adjustment for 2018.
BACKGROUND
Resolution No. 1796 (Attachment A) adopted in 2013 establishes a compensation policy for City
of Tukwila Employees. Per this resolution, it outlines the process to "adjust non -represented
employee salaries via market analysis to that of comparable jurisdictions in even -numbered years,
and to provide a cost -of -living (COLA) allowance in odd -numbered years"
In 2017 the market analysis was put on hold to allow Administration and the City Council to
discuss Council Resolution No. 1796, which establishes the City's compensation policy. This item
was on the Finance Committee Workplan and an initial discussion was held on April 4. The review
was not completed this year mostly due to the fact that the collective bargaining agreements were
still being negotiated. The recommendation is to move this review to the 2018 workplan.
Per the request of the Finance Committee Chair, staff was asked to provide a recommendation on
moving forward with a non -represented compensation plan in 2017 that would be equitable for
these 37 employees (roughly 10% of the City's workforce) which include positions such as Office
Technicians, Administrative Assistants, Coordinators, Administrators, Managers and Directors.
Resolution No. 1796 provides a mechanism for deviations from this process. For internal equity
considerations and to mitigate salary compression, Administration is recommending that the non -
represented employees receive the same increase provided to the Teamsters of 2.7% (90% of
CPI -W) effective January 1, 2018. This includes implementing the self-funded health benefit
design changes recommended in 2017. In addition, discussion of the City's compensation policy
would commence 1st quarter of 2018.
RECOMMENDATION
The Finance Committee is being asked to forward this item for discussion to the Committee of the
Whole meeting on November 27, 2017 and subsequent December 4 Regular Meeting for
approval.
ATTACHMENTS
-Attachment A: Resolution No. 1796 Employee Compensation Policy
- Attachment B: Resolution Updating and Clarifying Non -Represented Employees Compensation
- Attachment C: 2018 Benefits and Salary Schedule
101
102
City of Tukwila
Washington
Resolution No. 9,6,
A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF
TUKWILA, WASHINGTON, ESTABLISHING A COMPENSATION
POLICY FOR CITY OF TUKWILA EMPLOYEES AND
REPEALING RESOLUTION NO. 1387.
WHEREAS, the City believes that the purpose of a compensation program is to
facilitate recruiting, retention, development and productivity of employees; and
WHEREAS, the City desires to utilize standardized policies, procedures and
processes, wherever possible, for compensating all employee groups, both represented
and non -represented; and
WHEREAS, the City recognizes that current economic conditions and forecasts,
long-range City budget forecasts, position rates for comparable jurisdictions, as well as
internal equity considerations should assist in guiding in the compensation of
employees; and
WHEREAS, the City has made a determination to, when economic conditions
allow, review and adjust non -represented employee salaries via a market analysis to
that of the average of comparable jurisdictions in even -numbered years, and to provide
a cost -of -living (COLA) allowance in odd -numbered years; and
WHEREAS, the City has made a determination to, when economic conditions and
negotiations allow, provide represented employees with salaries that reflect the average
of comparable jurisdictions; and
WHEREAS, the City has made a determination to, when economic conditions
allow, provide benefits to represented and non -represented employees that are slightly
above the average of comparable jurisdictions; and
WHEREAS, the City Council will participate in setting negotiation expectations and
reviewing and approving represented employee group contracts;
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103
NOW, THEREFORE, THE CITY COUNCIL OF THE CITY OF TUKWILA,
WASHINGTON, HEREBY RESOLVES AS FOLLOWS:
Section 1. The following statements and processes are adopted for the purpose of
guiding compensation programs for employees of the City of Tukwila.
A. Information to be provided to the City Council.
1. For Represented Employees. A written presentation of current internal
and local external public agency salary and benefit trends, including a salary and
benefits market survey of comparable jurisdictions, as defined herein, will be provided
to the City Council. This presentation must be made to the Council prior to the
commencement of negotiations with the bargaining units regarding salary and benefits.
The City Council and Administration will discuss represented employee group
negotiation expectations, negotiating points, salary and benefit change floors and/or
ceilings prior to the beginning and at appropriate points during negotiation sessions.
2. For Non -Represented Employees. A written presentation of current
internal and local external public agency salary and benefit trends, including a salary
and benefits market survey of comparable jurisdictions, as defined herein, will be
provided to the City Council every year that a non -represented salary increase is due.
Relevant Association of Washington Cities (AWC) data from the previous year's
Washington City and County Employee Salary and Benefit Survey, for the comparable
jurisdictions, will be used in the salary market survey.
B. Compensation Policy.
1. All Puget Sound jurisdictions with +/-50% of Tukwila's annual assessed
valuation, based upon the Department of Revenue data, will be used to create the list of
comparable jurisdictions for evaluation of salary information. It is desirable to use the
same comparable jurisdictions for both represented and non -represented employee
groups.
2. For non -represented employees, the City desires to pay the average salary
for the particular pay scale, as derived from the comparable jurisdiction data described
in Section B.1. If the City's pay scale for any classification does not represent the
average of comparable salary ranges (+/-5%), written justification must be provided to
the City Council. For represented employees, the City desires to pay salaries that are
competitive to the City's comparable jurisdictions.
3. The cost -of -living adjustment (COLA) in odd -numbered years for non -
represented employees shall be based upon 90% of the Seattle -Tacoma -Bremerton
Consumer Price Index (CPI -W) Average (June to June). It is desirable to calculate
represented cost -of -living adjustments the same way, unless a different method is
authorized by the Council.
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Page 2 of 3
4. The goal of the City is to establish parity between represented and non -
represented employees' benefits. The City desires to provide employee benefits that
are competitive to the comparable cities described herein. The City will endeavor to
keep increases to annual health care costs under market averages. If costs exceed
market averages, adjustments will be made to reduce benefit costs.
5. The goal of the City is to mitigate or avoid salary compression issues
where possible. An example of salary compression would be when a non -represented
supervisor earns less, or is projected to earn less than those that he/she supervises
due to contracted wage increases.
6. If the Administration determines that a deviation from the above process
(in its entirety or for individual positions) is necessary, it will provide justification to the
City Council for review and approval prior to the adoption of any process change.
Section 2. Resolution No. 1387 is hereby repealed.
PASSED BY THE CITY COUNCILF THE CITY OF TUKWILA, WASHINGTON,
at a Regular Meeting thereof this 3 gg day of , 2013.
ATTEST/AUTHENTICATED:
(2tJ7
Christy O'Flah ' , MMC, City Cler
APPROVED AS TO FORM BY:
Shell
rney
t6N--)/41,'
Kathy HoLSgard Co , it Pres'
Filed with the City Clerk: S'
Passed by the City Council: to -
Resolution Number: Vri
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Page 3 of 3
105
106
A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF
TUKWILA, WASHINGTON, UPDATING AND CLARIFYING
NON -REPRESENTED EMPLOYEES' COMPENSATION, AND
ADOPTING THE NON -REPRESENTED SALARY SCHEDULE
AND BENEFITS SUMMARY, EFFECTIVE JANUARY 1, 2018.
WHEREAS, the goal of the City is to mitigate or avoid salary compression issues
where possible; and
WHEREAS, City Administration recommends non -represented employees receive
the wage adjustment that Teamsters' represented positions will receive of 2.7% to base
wages effective January 1, 2018;
NOW, THEREFORE, THE CITY COUNCIL OF THE CITY OF TUKWILA,
WASHINGTON, HEREBY RESOLVES AS FOLLOWS:
Section 1. Non -Represented Wage Plan.
A. The 2018 wage schedule for non -represented employees shall be increased by a
rate of 2.7%.
B. Longevity pay will continue to be a part of the plan.
C. Merit will continue to be eliminated from the plan, but may be considered as a
plan element in subsequent years.
Section 2. Non -Represented Salary Schedule, Benefits Summary and
Longevity Pay Plan.
A. The non -represented salary schedule, "Attachment A" hereto, is hereby
approved, effective January 1, 2018.
B. The non -represented benefits summary, "Attachment B" hereto, is hereby
approved, effective January 1, 2018.
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107
C. The non -represented longevity pay plan, "Attachment C" hereto, is hereby
approved, effective January 1, 2018.
PASSED BY THE CITY COUNCIL OF THE CITY OF TUKWILA, WASHINGTON, at
a Regular Meeting thereof this day of , 2017.
ATTEST/AUTHENTICATED:
Christy O'Flaherty, MMC, City Clerk Dennis Robertson, Council President
APPROVED AS TO FORM BY:
Rachel B. Turpin, City Attorney
Filed with the City Clerk:
Passed by the City Council:
Resolution Number:
Attachments:
- Attachment A, Non -Represented Salary Schedule — 2018
- Attachment B, Non -Represented Employee Benefits Summary — 2018
- Attachment C, Longevity Pay Plan for Non -Represented Employees — 2018
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Page 2 of 2
Attachment A (Page 1 of 3)
City of Tukwila
Non -Represented Salary Schedule - 2018
Classification Title
Job Title
Range
Office Technician
Human Resources Technician
B21
Office Specialist
Assistant to the Chief
B22
Administrative Assistant
Deputy City Clerk
Assistant to the Director
B23
Executive Coordinator
Executive Coordinator
C41
Program Coordinator
Information Technology Systems Administrator
C41
Management Coordinator
C42
Management Analyst
Council Analyst
Human Resources Analyst
Parks & Recreation Analyst
Public Works Analyst
C42
Program Administrator
Economic Development Liaison
C43
Project Manager
Community Engagement Manager
C51
Program Manager
Building Official
Communications/Government Relations
Manager
Senior Manager Police Support Operations
Technology Integration Manager
Records Governance Manager/City Clerk
D61
Administrative Manager
Maintenance Operations Manager
D62
Assistant Director
Deputy Community Development Director
Deputy Finance Director
Municipal Court Administrator
D63
Department Manager
Assistant Fire Chief
City Engineer
D72
Department Administrator
Economic Development & Strategic Planning
Manager
E81
Deputy Police Chief
Deputy Police Chief
E82
109
Attachment A (Page 2 of 3)
City of Tukwila
Non -Represented Salary Schedule - 2018
Classification Title
Job Title
Range
Department Head
Human Resources Director
DCD Director
Finance Director
IT Director
Parks & Recreation Director
E83
Department Director
Fire Chief
Police Chief
Public Works Director
E91
City Administrator
City Administrator
F102
Title Table Revised: 08/25/17
110
Attachment A (Page 3 of 3)
Non -Represented Salary Structure (Monthly) - 2018*
*2.7% COLA applied. Payroll to review and provide finalized wage schedule.
DBM
Rating
(Minimum)
Step 1
Step 2
Step 3
Step 4
Step 5
Step 6
Step 7
All
4,178
4,309
4,442
4,571
4,702
Al2
4,510
4,653
4,797
4,938
5,077
A13
4,853
5,001
5,153
5,305
5,455
B21
5,068
5,258
5,450
5,638
5,833
B22
5,398
5,600
5,804
6,006
6,210
B23
5,723
5,938
6,154
6,368
6,587
B31
6,008
6,271
6,533
6,796
7,060
B32
6,487
6,770
7,055
7,340
7,625
C41
6,682
6,948
7,215
7,484
7,751
8,019
C42
7,057
7,341
7,623
7,906
8,188
8,474
C43
7,372
7,667
7,963
8,258
8,552
8,851
C51
7,611
7,952
8,294
8,637
8,977
9,324
C52
8,136
8,500
8,867
9,234
9,601
9,890
D61
8,049
8,451
8,854
9,258
9,660
10,060
D62
8,193
8,601
9,011
9,420
9,830
10,238
D63
8,480
8,904
9,328
9,753
10,178
10,600
D71
8,675
9,150
9,626
10,102
10,576
11,054
D72
9,104
9,600
10,100
10,596
11,096
11,593
E81
9,200
9,659
10,121
10,578
11,072
11,568
12,043
E82
9,538
10,017
10,495
10,972
11,452
11,931
12,407
E83
9,818
10,311
10,800
11,293
11,783
12,275
12,767
E91
10,160
10,668
11,178
11,687
12,195
12,705
13,213
E92
10,579
11,111
11,642
12,170
12,701
13,232
13,762
F101
11,005
11,555
12,105
12,658
13,210
13,758
14,309
F102
11,151
11,708
12,266
12,826
13,384
13,943
14,500
111
112
Attachment B (Page 1 of 2)
Non -Represented Employee Benefits - 2018
Social Security (FICA): Social Security benefits shall be provided as contained in Section 2.52.010
of the Tukwila Municipal Code (TMC).
State -Wide Employee Retirement System (PERS): Retirement shall be provided as contained in
Section 2.52.020 of the TMC.
Holidays: Holidays shall be provided as contained in Section 2.52.030 of the TMC. An additional
floating holiday has been granted to each non -represented employee, for a total of 2 floating
holidays. Regular part-time employees shall be entitled to benefits on a pro -rata basis.
Sick Leave: Sick leave shall be provided as contained in Section 2.52.040 of the TMC. Regular
part-time employees shall be entitled to benefits on a pro -rata basis.
Medical Insurance: The City shall pay 100% of the 2018 premium for regular full-time employees
and their dependents under the City of Tukwila self-insured medical plan. In the event the
monthly premium increase is above 8% per year, the City's joint/labor management committee,
which includes a non -represented employee, shall meet and discuss changes in the self -Insured
medical, dental, vision and prescription plan benefit levels in an effort to create plan savings so
the premium costs do not exceed the 8%. Regular part-time employees shall be entitled to benefits
on a pro -rata basis. Employees who choose coverage under the Kaiser Permanente plan shall pay
the difference between the City of Tukwila plan full -family rate and the rate charged to them by
Kaiser Permanente.
Dental Insurance: The City shall provide 100% of the 2018 premium for the regular full-time
employees and all dependents under the City of Tukwila self-insured dental plan for dental
coverage. Regular part-time employees shall be entitled to the same benefits on a pro -rata basis.
Life Insurance: For regular full-time employees, the City shall pay the premium for Plan C
(Multiple of annual earnings) or similar group life and accidental death and dismemberment
insurance policy. Said plan shall be at 100% of annual earnings rounded up to the next $1,000.
Regular part-time employees that work at least 20 hours per week shall be entitled to benefits on
a pro -rata basis (per insurance program requirements).
Vision/Optical: Benefits are provided to all non -represented regular full-time employees and
their dependents at the rate of $250 per person, to a maximum of $500 per family unit each year.
Regular part-time employees and their dependents shall be entitled to benefits on a pro -rata basis.
Disability Insurance: The City shall provide 100% of the premium for regular full-time
employees for a comprehensive long-term disability policy. Regular part-time employees that
work at least 20 hours per week shall be entitled to benefits on a pro -rata basis (per insurance
program requirements).
Health Reimbursement Arrangement/Voluntary Employee Benefit Association (HRA/VEBA):
VEBA benefits shall be provided as contained in Resolution No. 1445 and as amended.
113
Attachment B (Page 2 of 2)
Non -Represented Employee Benefits - 2018
Vacation: Following the sixth month of continuous employment, annual vacation leave of six
full days (each day is calculated at eight hours, regardless of schedule worked) shall be granted.
Thereafter, an additional day of annual leave shall accrue each month, up to a total of 12 days.
Three additional days of annual leave shall be granted on the employee's anniversary date after
the third, fourth and fifth years. After six years, the employee shall be granted one day per year
additional annual leave to a maximum of 24 days per year. The maximum number of accrued
hours is 384 or 48 days.
Years of Service
Vacation Accrual
Years of Service
Vacation Accrual
0-1 years
12 days*
10 years
19 days
1-2 years
12 days
11 years
20 days
3-6 years
15 days
12 years
21 days
7 years
16 days
13 years
22 days
8 years
17 days
14 years
23 days
9 years
18 days
15 years
24 days (maximum)
*Six full days will be granted following the sixth month of continuous employment.
(Days accrue at eight hours, regardless of schedule worked.) Regular part-time
employees shall be entitled to benefits on a pro -rata basis.
Uniform Allowance: An annual uniform allowance of $650 shall be granted to the following
employees: Fire Chief, Assistant Fire Chief, Police Chief, Deputy Police Chief, and Senior
Manager Police Support Operations.
114
Attachment C
Longevity Pay Plan for Non -Represented Employees - 2018
The monthly longevity flat rates shall be as follows for regular full-time employees after the
completion of the number of years of full time employment with the City set forth below. Regular
part-time employees shall receive longevity on a pro -rata basis.
Completion of 5 years
$ 75
Completion of 10 years
100
Completion of 15 years
125
Completion of 20 years
150
Completion of 25 years
175
Completion of 30 years
200
115
116
City of Tukwila
Allan Ekberg, Mayor
INFORMATIONAL MEMORANDUM
TO: Finance & Safety Committee
FROM: Joseph Todd (TIS)
BY: Tami Eberle -Harris, Roman Linsao
CC: Mayor Ekberg
DATE: November 14, 2017
SUBJECT: ESRI Enterprise License Agreement (ELA) for GIS
ISSUE
GIS is no longer a sidelined toolset. It is becoming a central, integral part of our key business
processes.
BACKGROUND
The City of Tukwila currently has ArcGIS for Server and several stand-alone licenses for ESRI
GIS. This proposal details the advantages of upgrading to an ESRI Enterprise License (ELA) for
the City of Tukwila.
DISCUSSION
2017 has been a year of growth for GIS at the City of Tukwila. The GIS Coordinator was re-
assigned to the TIS department in order to fulfill enterprise level GIS capabilities and expand the
GIS Program. During 2016 and 2017, a centralized GIS warehouse was built, incorporating
layers and data utilized by multiple departments. With the assistance of King County and DCD,
the Tukwila iMap application was implemented, and is used for a myriad of business use cases,
which include but are not limited to creating `Self -Service' address lists, Land Development
inquiries, and fulfilling citizen inquiries and reports. Additional layers are being added to the
Tukwila iMap on an ongoing basis, exploration has begun on utilizing the Collector app to collect
GIS data in the field, and a contract was recently initiated to bring Lucity Asset management
onboard, which will also be integrated with our GIS data warehouse.
Many benefits would be gained by procuring the ELA. The named user licenses for ArcGIS
online and portal would increase, providing more opportunities for staff and citizens to utilize
GIS capabilities. The ArcGIS Online credits available to Tukwila would increase as well, which is
key to aligning Tukwila's GIS to our Cloud First strategies. Analytic tools such as Insights for
ArcGIS would be available for data analysis, ultimately improving GIS access, and enhancing
GIS capabilities for front line employees allowing for improved quality services for the citizens of
Tukwila.
FINANCIAL IMPACT
Multiple Departments in the city currently share the cost of GIS maintenance and licensing.
The total ongoing maintenance cost for current licensing is $11,800. This gives the City access
to limited licensing for ArcGIS Online, ArcGIS for Server, Desktop software, and several
extensions, utilized in applications or by users in departments of DCD, Fire, Police, PW, and
TIS.
117
INFORMATIONAL MEMO
Page 2
The Enterprise agreement would expand on the current tools to include uncapped quantities of
Desktop software and developer tools, increased user named licensing for ArcGIS Online (from
6 to 100), increased online service credits for ArcGIS Online (from 600 to 10,000), and multiple
software extensions.
The cost shown in the attached quote covers the two-year agreement, in an amount not to
exceed $55,000.
Below is a summary of some of the cost savings and credits by purchasing the products
Maintenance Credit = $5,367
Licensing Credit = $2 580
$7,947
The total over two years is below the current allocated budget in TIS for GIS Professional
services (budgeted $90,000 for 2017 & 2018)
RECOMMENDATION
The Committee is being asked to consider the 2 -year ESRI ELA agreement in the amount of
$55,000 and forward this item to the December 4, 2017 Regular Meeting Consent Agenda.
ATTACHMENTS
-ESRI Small Enterprise Agreement County & Municipality Government (E214-1)
118 W:12017 Info MemosIESRI_ELA_InfoMemo_112117.doc
esri'
Environmental Systems Research Institute, Inc.
380 New York St
Redlands, CA 92373-8100
Phone: 909-793-2853 Fax: 909-307-3049
DUNS Number: 06-313-4175 CAGE Code: OAMS3
To expedite your order, please attach a copy of
this quotation to your purchase order.
Quote is valid from: 11/14/2017 To: 02/12/2018
Quotation # 20518811
Date: November 14, 2017
Customer # 135074 Contract #
City of Tukwila
Information Technology Dept
6300 Southcenter Blvd Ste 202
Tukwila, WA 98188
ATTENTION: Tami Eberle -Harris
PHONE: (206) 433-7150
FAX: (206) 433-1833
Material Qty Description
110035 1 Populations of 0 to 25,000 Small Government Term Enterprise License
Agreement Year 1
110035 1 Populations of 0 to 25,000 Small Government Term Enterprise License
Agreement Year 2
Unit Price
25,000.00
25,000.00
Total
25,000.00
25,000.00
Item Total:
50,000.00
Subtotal:
Sales Tax:
Estimated Shipping & Handling(2 Day Delivery) :
Contract Pricing Adjust:
Please note credit will be given for any unused maintenance at the start of the
enterprise agreement.
50,000.00
5,000.00
0.00
0.00
Total: $55,000.00
Esri may charge a fee to cover expenses related to any customer requirement to use a proprietary vendor management, procurement, or invoice program.
For questions contact: Heather Glock
Email: hglock(&esri.com Phone: 909-793-2853 x8948
The items on this quotation are subject to the terms of this quotation and of your signed agreement with Esri, if applicable. If no such agreement covers
any item, then Esri's standard terms and conditions found at http://www.esri.com/legal/software-license apply to your purchase of that item. Federal
government entities and government prime contractors authorized under FAR 51.1 may purchase under the terms of Esri's GSA Federal Supply
Schedule. Acceptance of this quotation is limited to the terms of this quotation. State and local government entities in California or Maryland buying
under the State Contract are also subject to the terms and conditions found at http://www.esri.com/legal/supplemental-terms-and-conditions. Esri objects
to and expressly rejects any different or additional terms contained in any purchase order, offer, or confirmation sent to or to be sent by buyer. All terms
of this quotation will be incorporated into and become part of any additional agreement regarding Esri's offerings.
If sending remittance, please address to: Esri, P.O. Box 741076, Los Angeles, CA 90074-1076
GLOCKH
This offer is limited to the terms and conditions incorporated and attached herein.
119
esrr
Environmental Systems Research Institute, Inc.
380 New York St
Redlands, CA 92373-8100
Phone: 909-793-2853 Fax: 909-307-3049
DUNS Number: 06-313-4175 CAGE Code: OAMS3
To expedite your order, please attach a copy of
this quotation to your purchase order.
Quote is valid from: 11/14/2017 To: 02/12/2018
Quotation # 20518811
Date: November 14, 2017
Customer # 135074 Contract #
City of Tukwila
Information Technology Dept
6300 Southcenter Blvd Ste 202
Tukwila, WA 98188
ATTENTION: Tami Eberle -Harris
PHONE: (206) 433-7150
FAX: (206) 433-1833
If you have made ANY alterations to the line items included in this quote and have chosen to sign the quote to indicate your acceptance, you must fax
Esri the signed quote in its entirety in order for the quote to be accepted. You will be contacted by your Customer Service Representative if additional
information is required to complete your request.
If your organization is a US Federal, state, or local government agency; an educational facility; or a company that will not pay an invoice without having
issued a formal purchase order, a signed quotation will not be accepted unless it is accompanied by your purchase order.
In order to expedite processing, please reference the quotation number and any/all applicable Esri contract number(s) (e.g. MPA, ELA, SmartBuy, GSA,
BPA) on your ordering document.
BY SIGNING BELOW, YOU CONFIRM THAT YOU ARE AUTHORIZED TO OBLIGATE FUNDS FOR YOUR ORGANIZATION, AND YOU ARE AUTHORIZING
ESRI TO ISSUE AN INVOICE FOR THE ITEMS INCLUDED IN THE ABOVE QUOTE IN THE AMOUNT OF $ , PLUS SALES TAXES IF
APPLICABLE. DO NOT USE THIS FORM IF YOUR ORGANIZATION WILL NOT HONOR AND PAY ESRI'S INVOICE WITHOUT ADDITIONAL AUTHORIZING
PAPERWORK.
Please check one of the following:
_ I agree to pay any applicable sales tax.
_ I am tax exempt, please contact me if exempt information is not currently on file with Esri.
Signature of Authorized Representative Date
Name (Please Print)
Title
The quotation information is proprietary and may not be copied or released other than for the express purpose of system selection and purchase/license. This information may not be given to outside
parties or used for any other purpose without consent from Environmental Systems Research Institute, Inc. (Esri).
Any estimated sales and/or use lax reflected on this quote has been calculated as of the date of this quotation and is merely provided as a convenience for your organization's budgetary purposes. Esri
reserves the right to adjust and collect sales and/or use tax at the actual date of invoicing. If your organization is tax exempt or pays state tax directly, then prior to invoicing, your organization must
provide Esri with a copy of a current tax exemption certificate issued by your state's taxing authority for the given jurisdiction.
Esri may charge a fee to cover expenses related to any customer requirement to use a proprietary vendor management, procurement, or invoice program.
For questions contact: Heather Glock
Email: hglockesri.com Phone: 909-793-2853 x8948
The items on this quotation are subject to the terms of this quotation and of your signed agreement with Esri, if applicable. If no such agreement covers
any item, then Esri's standard terms and conditions found at http://www.esri.com/legal/software-license apply to your purchase of that item. Federal
government entities and government prime contractors authorized under FAR 51.1 may purchase under the terms of Esri's GSA Federal Supply
Schedule. Acceptance of this quotation is limited to the terms of this quotation. State and local government entities in California or Maryland buying
under the State Contract are also subject to the terms and conditions found at http://www.esri.com/legal/supplemental-terms-and-conditions. Esri objects
to and expressly rejects any different or additional terms contained in any purchase order, offer, or confirmation sent to or to be sent by buyer. All terms
of this quotation will be incorporated into and become part of any additional agreement regarding Esri's offerings.
If sending remittance, please address to: Esri, P.O. Box 741076, Los Angeles, CA 90074-1076
GLOCI1F2O
This offer is limited to the terms and conditions incorporated and attached herein.
esri
IMPLEMENTATION SERVICES ADDENDUM
FOR SERVICES PACKAGES
Esri, 380 New York St., Redlands, CA 92373-8100 USA • TEL 909-793-2853 • FAX 909-793-5953
I. DEFINITIONS
"Commercial Off -the -Shelf Software" or "COTS Software"
means all or any portion of Esri's proprietary software technology
accessed or downloaded from an authorized Esri website or
delivered on any media, in any format, including backups, updates,
service packs, patches, hot fixes, or permitted merged copies,
available under license to the general public.
"Map Data" means any digital dataset(s) including geographic,
vector data, coordinates, raster, or associated tabular attributes
supplied by either party for use in the performance of this
Addendum.
"Services" means consulting support being performed by Esri on a
time and materials basis in exchange for compensation from
Customer.
"Services Output" means any work product produced by Esri as a
result of Services provided under this Addendum. Services Output
can include, but is not limited to, reports, training materials, and
custom software code.
"Services Package(s)" means a predefined unit of Services
provided at a firm fixed price, as stated in Esri's proposal.
2. OWNERSHIP AND GRANT OF LICENSE
Except as specifically granted in this Addendum, Esri owns and
retains all rights, title, and interest in Services Output. Subject to the
terms and conditions in this Addendum, Esri grants to Customer a
nonexclusive, royalty -tree, worldwide -license to use, modify, and/or
reproduce Services Output in connection with Customer's
authorized use of Esri's COTS Software.
3. PATENTS AND INVENTIONS
Esri and Customer will retain title to any inventions, innovations,
and improvements ("Inventions") made or conceived solely by its
principals, employees, consultants, or independent contractors
("Inventors") during the term of this Addendum. Esri and Customer
will jointly own any Inventions made or conceived jointly by
Inventors from both parties. Where Inventions are jointly owned,
each joint owner will share equally the costs of acquiring protection
for the Inventions and furnish the other joint owner with assistance
reasonably required for acquiring protection. Neither Esri nor
Customer may license, transfer, or sell its interest in jointly owned
Inventions without the written consent of the other party, which will
not be unreasonably withheld.
4. COMPENSATION
Esri will perform and invoice Services on a firm fixed price basis,
and the deliverable will be consultation time. Esri will invoice
Customer for all Services Packages ordered upon receipt of a valid
Customer Purchase Order/ordering document. The Purchase
Order/ordering document will confirm the quantity and price of the
Services Packages ordered, as described in Esri's proposal or
quotation, and will reference Customer acceptance of this terms and
conditions document. Esri standard payment terms are net 30 days
from receipt of an Esri invoice. Payment will be made to the Esri
address identified on the Esri invoice. For Services provided beyond
the period of performance proposed or provided in a new calendar
year, Esri reserves the right to increase the Services Package price in
accordance with Esri's most current price schedule. Esri's obligation
for completion of the Services proposed is limited to the hours
outlined in the Services Package descriptions within Esri's statement
of work. If additional time is required to complete Customer's goals
or activities set forth in the applicable statement of work, Esri and
Customer will amend the Purchase Order/ordering document, as
mutually agreed, by increasing the quantity of Service Packages
ordered and issuing a new or amended Purchase Order/ordering
document. Esri may, at its sole discretion, stop work to avoid
exceeding the total hours allotted in a specific Services Package.
Unused labor hours or travel remaining after the performance of a
Services Package will expire and not be available for performance at
a later date. If funded Services Packages have not been performed
within twelve (12) months of the Esri invoice date, the Services
Package will expire, and no refund will be provided. Any
amendment to the Purchase Order/ordering document to add
Services Packages will not affect the rights or obligations of the
parties under this Addendum.
5. LIMITED WARRANTY AND DISCLAIMER OF
WARRANTIES
Esri warrants for a period of ninety (90) days from the date of
performance that Services will substantially conform to the
professional and technical standards of the software industry. If
Services do not substantially conform to these standards, Customer
may require Esri to reperform Services at no additional cost to
Customer. Services Output is provided as is without warranty of any
kind.
Disclaimer of Warranties. With the exception of the limited
warranty set forth in this Article, Esri disclaims and this
Addendum expressly excludes all other warranties, express or
implied, oral or written, including, without limitation, any and
all warranties of merchantability or fitness for a particular
purpose.
In addition to and without limiting the preceding paragraph,
Esri does not warrant in any way Map Data. Map Data may not
be free of nonconformities, defects, errors, or omissions; be
available without interruption; be corrected if errors are
discovered; or meet Customer's needs or expectations.
Customer should not rely on any Map Data unless Customer
has verified Map Data against actual data from documents of
record, field measurement, or observation.
6. LIMITATION OF LIABILITY AND EXCLUSIVE
REMEDY
In no event will Esri be liable to Customer for procurement of
substitute goods or services; lost profits; lost sales; business
expenditures; investments; business commitments; loss of
goodwill; or any indirect, special, exemplary, consequential, or
incidental damages arising out of or related to this Addendum,
however caused or under any theory of liability, even if Esri has
been advised of the possibility of such damages.
G363D Page 1 oft 08/14/2014
121
Esri's.total cumulative liability under this Addendum, from all
causes of action of any kind, will in no event exceed the amount
actually paid by Customer for services under this Addendum
from which the liability directly arose.
7. CONFIDENTIALITY
Services Output is Esri confidential information, and Customer will
preserve and protect the confidentiality of Services Output.
Customer agrees not to reverse engineer or decompile custom
software delivered in object code, executable code, or similar
formats (collectively, "Secure Formats"). For custom software
delivered in source code or other human -readable formats, Customer
will have met its obligations under this provision if its disclosure of
custom software is limited to custom software in Secure Formats,
provided that the means for reverse engineering, decompiling, or
disassembling the custom software is withheld from such disclosure,
and the person or entity in receipt of the custom software similarly
agrees not to perform the prohibited acts described above or allow
others to do so.
Except as provided in the preceding paragraph, Customer will not
disclose Services Output to third parties without the advance written
consent of Esri. Customer may make disclosures to Customer's
employees to the extent reasonably required to allow Customer to
use Services Output in a manner authorized under the applicable
software licenses. Before disclosing all or any portion of Services
Output to employees or third parties as permitted in the preceding
sentence, Customer will inform its employees or third parties of the
obligations in this Addendum and obtain their agreement to be
bound by them. Customer must comply with Article 8 in making
any permitted disclosures.
8. EXPORT CONTROLS
Customer must comply with all applicable laws and regulations of
the United States including, without limitation, its export control
laws. Customer expressly acknowledges and agrees not to export,
reexport, transfer, or release Services Output, in whole or in part, to
(i) any US embargoed country (including to a resident of any US
embargoed country); (ii) any person on the US Treasury
Department's list of Specially Designated Nationals; (iii) any person
or entity on the US Commerce Department's Lists of Parties of
Concern; or (iv) any person or entity where such export, reexport, or
provision violates any US export control laws or regulations
including, but not limited to, the terms of any export license or
licensing provision and any amendments and supplemental additions
to US export laws.
9. GENERAL PROVISIONS
9.1 Nonsolicitation. Neither party will directly solicit for hire any
employee of the other party who is associated with Services called
for under this Addendum during, and for a period of one (1) year
after, project completion. In the event this provision is breached,
liquidated damages equal to twelve (12) months of the employee's
compensation, plus any legal expenses associated with the
enforcement of this provision, will be paid by the breaching party to
the aggrieved party. The foregoing will in no way restrict the parties
from publicly advertising positions for hire in newspapers,
professional magazines, or Internet postings.
9.2 Taxes. Services are quoted exclusive of all state, local, value-
added, or other taxes; customs; duties; or other charges (other than
income taxes payable by Esri). In the event such taxes and/or
charges become applicable to Esri's Services or Services Output,
Customer will pay the applicable tax upon receipt of written notice
that it is due.
9.3 UCC Inapplicability. Services provided under this Addendum
will not be governed by the Uniform Commercial Code (UCC) and
will not be deemed "goods" within the definition of UCC.
9.4 Order of Precedence. These terms and conditions will take
precedence over any Customer terms and conditions included in
Customer ordering or authorizing documents, such as purchase
orders. Any additional terms or conditions in Customer ordering or
authorizing documents will be void and may be incorporated into
this Addendum only by written amendment signed by both parties.
9.5 Equitable Relief. Customer agrees that any breach of this
Addendum by Customer may cause Esri irreparable damage. In the
event of a breach, in addition to any and all remedies at law, Esri
will have the right to seek an injunction, specific performance, or
other equitable relief in any court of competent jurisdiction to
prevent violation of these terms without the requirement of posting a
bond or undertaking or proving injury as a condition of relief.
9.6 Governing Law. This Addendum will be governed by and
construed in accordance with the laws of the State of California
without reference to its conflict of laws principles.
9.7 Entire Agreement. This Addendum is the sole and entire
agreement of the parties for Services and supersedes any previous
agreements, understandings, and arrangements (including any
purchase order terms and conditions) between the parties relating to
the subject matter.
G363D Page 2 of 2 08/14/2014
122
esri
Esri Use Only:
Cust. Name
Cust. #
PO #
Esri Agreement #
Esri, 380 New York St., Redlands, CA 92373-8100 USA • TEL 909-793-2853 • FAX 909-793-5953
SMALL ENTERPRISE AGREEMENT
COUNTY AND MUNIC..1PALITY GOVERNMENT
(E214-1)
This Agreement is by and between the organization identified in the Quotation ("Customer") and Environmental Systems
Research Institute, Inc. ("Esri").
This Agreement sets forth the terms for Customer's use of Products and incorporates by reference (i) the Quotation and
(ii) the License Agreement. Should there be any conflict between the terms and conditions of the documents that comprise
this Agreement, the order of precedence for the documents shall be as follows: (i) the Quotation, (ii) this Agreement, and
(iii) the License Agreement. This Agreement shall be governed by and construed in accordance with the laws of the state in
which Customer is located without reference to conflict of laws principles, and the United States of America federal law shall
govern in matters of intellectual property. The modifications and additional rights granted in this Agreement apply only to the
Products listed in Table A.
Table A
List of Products
Uncapped Quantities
Desktop Software and Extensions (Single Use)
ArcGIS Desktop Advanced
ArcGIS Desktop Standard
ArcGIS Desktop Basic
ArcGIS Desktop Extensions: ArcGIS 3D Analyst,
ArcGIS Spatial Analyst, ArcGIS Geostatistical Analyst,
ArcGIS Publisher, ArcGIS Network Analyst, ArcGIS
Schematics, ArcGIS Workflow Manager, ArcGIS Data
Reviewer
Enterprise Software and Extensions
ArcGIS Enterprise and Workgroup
(Advanced and Standard)
ArcGIS Enterprise Extensions: ArcGIS 3D Analyst,
ArcGIS Spatial Analyst, ArcGIS Geostatistical Analyst,
ArcGIS Network Analyst, ArcGIS Schematics, ArcGIS
Workflow Manager
Enterprise optional servers
ArcGIS Image Server
Developer Tools
ArcGIS Engine
ArcGIS Engine Extensions: ArcGIS 3D Analyst, ArcGIS
Spatial Analyst, ArcGIS Engine Geodatabase Update,
ArcGIS Network Analyst, ArcGIS Schematics
ArcGIS Runtime (Standard)
ArcGIS Runtime Analysis Extension
Limited Quantities
One (1) annual Professional subscription to ArcGIS
Developer*
Two (2) Esri CityEngine Advanced Single Use Licenses
50 Level I ArcGIS Online Named Users
50 Level 2 ArcGIS Online Named Users
10,000 ArcGIS Online Service Credits
50 Level 1 ArcGIS Enterprise Named Users
50 Level 2 ArcGIS Enterprise Named Users
2 Insights for ArcGIS
OTHER BENEFITS
Number of Esri User Conference registrations provided annually
2
Number of Tier 1 Help Desk individuals authorized to call Esri
2
Maximum number of sets of backup media, if requested**
2
Self -Paced e -Learning
Uncapped
Five percent (5%) discount on all individual commercially available instructor -led training classes at Esri facilities
purchased outside this Agreement (Discount does not apply to Small Enterprise Training Package.)
* Maintenance is not provided for these items
**Additional sets of backup media may be purchased for a fee
Page I of
03/03/2017
123
Customer may accept this Agreement by signing and returning the whole Agreement with a signed sales quotation, purchase
order, or other document that matches the Quotation and references this Agreement ("Ordering Document"). ADDITIONAL
OR CONFLICTING TERMS IN CUSTOMER'S ORDERING DOCUMENT WILL NOT APPLY, AND THE
TERMS OF THIS AGREEMENT WILL GOVERN. This Agreement is effective as of the date of Esri's receipt of
Customer's Ordering Document incorporating this Agreement by reference, unless otherwise agreed to by the parties
("Effective Date").
Term of Agreement: Two (2) years
This Agreement supersedes any previous agreements, proposals, presentations, understandings, and arrangements between
the parties relating to the licensing of the Products. Except as provided in Article 4—Product Updates, no modifications can
be made to this Agreement.
Accepted and Agreed:
City of Tukwila
(Customer)
By:
Authorized Signature
Printed Name:
Title:
Date:
CUSTOMER CONTACT 'INFORMATION
Contact: Telephone:
Address: Fax:
City, State, Postal Code: E-mail:
Country:
Quotation Number (if applicable):
Page 2 of 5 03/03/2017
124
1.0—ADDI'T'IONAL DEFINITIONS
In addition to the definitions provided in the License
Agreement, the following definitions apply to this
Agreement:
"Deploy", "Deployed" and "Deployment" mean to
redistribute and install the Products and related
Authorization Codes within Customer's organization(s).
"Fee" means the fee set forth in the Quotation.
"Case" means a failure of the Software or Online
Services to operate according to the Documentation
where such failure substantially impacts operational or
functional performance.
"License Agreement" means the applicable license
agreement for Esri Products incorporated by this
reference that is (i) found at
http://www.esri.com/legal/software-license and available
in the installation process requiring acceptance by
electronic acknowledgment or (ii) a signed Esri license
agreement that supersedes such electronically
acknowledged license agreement.
"Maintenance" means Tier 2 Support, Product updates,
and Product patches provided to Customer during the
Term of Agreement,
"Product(s)" means the products identified in Table A—
List of Products and any updates to the list Esri provides
in writing.
"Quotation" means the offer letter and quotation
provided separately to Customer.
"Technical Support" means the technical assistance for
attempting resolution of a reported Case through error
correction, patches, hot fixes, workarounds, replacement
deliveries, or any other type of Product corrections or
modifications.
"Tier 1 Help Desk" means Customer's point of
contact(s) to provide all Tier 1 Support within Customer's
organization(s).
"Tier 1 Support" means the Technical Support provided
by the Tier I Help Desk.
"Tier 2 Support" means the Technical Support provided
to the Tier I Help Desk when a Case cannot be resolved
through Tier 1 Support. Customer will receive Tier 2
Support from Esri.
2.O -ADDITIONAL GRANT OF LICENSE
2.1
Grant of License. Subject to the terms and
conditions of this Agreement, Esri grants to
Customer a personal, nonexclusive, nontransferable
license solely to use, copy, and Deploy quantities of
the Products listed in Table A—List of Products for
the term provided on the first page (i) for the
applicable Fee and (ii) in accordance with the
License Agreement.
2.2 Consultant Access. Esri grants Customer the right to
permit Customer's consultants or contractors to use
the Products exclusively for Customer's benefit.
Customer will be solely responsible for compliance
by consultants and contractors with this Agreement
and will ensure that the consultant or contractor
discontinues use of Products upon completion of
work for Customer. Access to or use of Products by
consultants or contractors not exclusively for
Customer's benefit is prohibited. Customer may not
permit its consultants or contractors to install
Software or Data on consultant, contractor, or third -
party computers or remove Software or Data from
Customer locations, except for the purpose of hosting
the Software or Data on Contractor Servers for the
benefit of Customer.
3.0 -TERM, TERMINATION, AND EXPIRATION
3.1 Term. This Agreement and all licenses hereunder
will commence on the Effective Date and continue
for the duration identified in the Term of Agreement,
unless this Agreement is terminated earlier as
provided herein. Customer is only authorized to use
Products during the Term of Agreement. For an
Agreement with a limited term, Esri does not grant
Customer an indefinite or a perpetual license to
Products.
3.2 No Use upon Agreement Expiration or
Termination. All Product licenses, all Maintenance,
and Esri User Conference registrations terminate on
expiration or termination of this Agreement.
3.3 Termination for a Material Breach. Either party
may terminate this Agreement for a material breach
by the other party. The breaching party will have
thirty (30) days from the date of written notice to
cure any material breach.
3.4 Termination for Lack of Funds. For an Agreement
with government or government-owned entities,
either party may terminate this Agreement before any
subsequent year if Customer is unable to secure
funding through the legislative or governing body's
approval process.
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3.5 Follow-on Term. If the parties enter into another
agreement substantially similar to this Agreement for
an additional term, the effective date of the follow-on
agreement will be the day after the expiration date of
this Agreement.
4.0-1ROM crt IiPt):1'I'Es
4.1 Future Updates. Esri reserves the right to update the
list of Products in Table A—List of Products by
providing written notice to Customer. Customer may
continue to use all Products that have been Deployed,
but support and upgrades for deleted items may not
be available. As new Products are incorporated into
the standard program, they will be offered to
Customer via written notice for incorporation into the
Products schedule at no additional charge. Customer's
use of new or updated Products requires Customer to
adhere to applicable additional or revised terms and
conditions of the License Agreement.
4.2 Product Life Cycle. During the Term of Agreement,
some Products may be retired or may no longer be
available to Deploy in the identified quantities.
Maintenance will be subject to the individual Product
Life Cycle Support Status and Product Life Cycle
Support Policy, which can be found at
http://supportesri.com/en/content
/productlifecvcles. Updates for Products in the
mature and retired phases may not be available.
Customer may continue to use Products already
Deployed during the Term of Agreement, but
Customer will not be able to Deploy retired Products.
5.0—MA TTE Cly.
The Fee includes standard maintenance benefits during
the Term of Agreement as specified in the most current
applicable Esri Maintenance and Support Program
document (found at http://www.esri.com/legal). At Esri's
sole discretion, Esri may make patches, hot fixes, or
updates available for download. No Software other than
the defined Products will receive Maintenance. Customer
may acquire maintenance for other Software outside this
Agreement.
a. Tier 1 Support
I. Customer will provide Tier 1 Support through
the Tier I Help Desk to all Customer's
authorized users.
2. The Tier 1 Help Desk will be fully trained in the
Products.
3. At a minimum, Tier 1 Support will include those
activities that assist the user in resolving how-to
and operational questions as well as questions on
installation and troubleshooting procedures.
4. The Tier 1 Help Desk will be the initial points of
contact for all questions and reporting of a Case.
The Tier 1 Help Desk will obtain a full
description of each reported Case and the system
configuration from the user. This may include
obtaining any customizations, code samples, or
data involved in the Case. The Tier 1 Help Desk
may also use any other information and
databases that may be developed to satisfactorily
resolve the Case.
If the Tier 1 Help Desk cannot resolve the Case,
an authorized Tier 1 Help Desk individual may
contact Tier 2 Support. The Tier 1 Help Desk
will provide support in such a way as to
minimize repeat calls and make solutions to
problems available to Customer.
6. Tier 1 Help Desk individuals are the only
individuals authorized to contact Tier 2 Support.
Customer may change the Tier 1 Help Desk
individuals by written notice to Esri.
b. 'Fier 2 Support
1. Tier 2 Support will log the calls received from
Tier 1 Help Desk.
2,
Tier 2 Support will review all information
collected by and received from the Tier 1 Help
Desk including preliminary documented
troubleshooting provided by the Tier I Help
Desk when Tier 2 Support is required.
3. Tier 2 Support may request that Tier 1 Help
Desk individuals provide verification of
information, additional information, or answers
to additional questions to supplement any
preliminary information gathering or
troubleshooting performed by Tier 1 Help Desk.
4. Tier 2 Support will attempt to resolve the Case
submitted by Tier 1 Help Desk.
5. When the Case is resolved, Tier 2 Support will
communicate the information to Tier 1 Help
Desk, and Tier I Help Desk will disseminate the
resolution to the user(s).
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6.0—ENDORSEMENT AND PUBLICITY
This Agreement will not be construed or interpreted as an
exclusive dealings agreement or Customer's endorsement
of Products. Either party may publicize the existence of
this Agreement.
7.0—ADMINls"riLA'I I VE REQUIREMENTS
7.1 OEM Licenses. Under Esri's OEM or Solution OEM
programs, OEM partners are authorized to embed or
bundle portions of Esri products and services with
their application or service. OEM partners' business
model, licensing terms and conditions, and pricing
are independent of this Agreement. Customer will not
seek any discount from the OEM partner or Esri
based on the availability of Products under this
Agreement. Customer will not decouple Esri products
or services from the OEM partners' application or
service.
7.2 Annual Report of Deployments. At each
anniversary date and ninety (90) calendar days prior
to the expiration date of this Agreement, Customer
will provide Esri with a written report detailing all
Deployments. Upon request, Customer will provide
records sufficient to verify the accuracy of the annual
report.
8.0—ORDERING, Al)IV
I ISTRAATV E
PROCEDURES, DELIVERY, AND
DEPLOYMENT
8.1 Orders, Delivery, and Deployment
a. Upon the Effective Date, Esri will invoice Customer
and provide Authorization Codes to activate the
nondestructive copy protection program that enables
Customer to download, operate, or allow access to
the Products. If this is a multi-year Agreement, Esri
may invoice the Fee before the annual anniversary
date for each additional year.
b. Undisputed invoices will be due and payable within
thirty (30) calendar days from the date of invoice.
Esri's federal ID number is 95-2775-732.
c. If requested, Esri will ship backup media to the ship -
to address identified on the Ordering Document, FOB
Destination, with shipping charges prepaid. Customer
acknowledges that should sales or use taxes become
due as a result of any shipments of tangible media,
Esri has a right to invoice and Customer will pay any
such sales or use tax associated with the receipt of
tangible media.
8.2 Order Requirements. Esri does not require
Customer to issue a purchase order. Customer may
submit a purchase order in accordance with its own
process requirements, provided that if Customer
issues a purchase order, Customer will submit its
initial purchase order on the Effective Date. If this is
a multi-year Agreement, Customer will submit
subsequent purchase orders to Esri at least thirty (30)
calendar days before the annual anniversary date for
each additional year.
a. All orders pertaining to this Agreement will be
processed through Customer's centralized point of
contact.
b. The following information will be included in each
Ordering Document:
(1) Customer name; Esri customer number, if
known; and bill -to and ship -to addresses
(2) Order number
(3) Applicable annual payment due
9.0—MERGERS, ACQUISITIONS, OR
DIVESTITURES
If Customer is a commercial entity, Customer will notify
Esri in writing in the event of (i) a consolidation, merger,
or reorganization of Customer with or into another
corporation or entity; (ii) Customer's acquisition of
another entity; or (iii) a transfer or sale of all or part of
Customer's organization (subsections i, ii, and iii,
collectively referred to as "Ownership Change"). There
will be no decrease in Fee as a result of any Ownership
Change.
9.1 If an Ownership Change increases the cumulative
program count beyond the maximum level for this
Agreement, Esri reserves the right to increase the Fee
or terminate this Agreement and the parties will
negotiate a new agreement.
9.2 If an Ownership Change results in transfer or sale of
a portion of Customer's organization, that portion of
Customer's organization will transfer the Products to
Customer or uninstall, remove, and destroy all copies
of the Products.
9.3 This Agreement may not be assigned to a successor
entity as a result of an Ownership Change unless
approved by Esri in writing in advance. If the
assignment to the new entity is not approved,
Customer will require any successor entity to
uninstall, remove, and destroy the Products. This
Agreement will terminate upon such Ownership
Change.
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