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Home My WebLink AboutREG 2018-05-07 Item 6C - Ordinance - $20,000,000 Limited Tax General Obligation Bonds Related to Land Acquisition and Construction, Improvement and Equipping of MaintenanceCOUNCIL AGENDA SYNOPSIS I nilia/1 Meeliq Dale Prepares/ lay 117or's review Council review 04/23/18 PMc t �; 05/07/18 PMc c °4, C.A 1'l,:(;ORY ►1 Dicussion :1118 Date SPONSOR Council Ii1ayor ❑1IR [—DCI) 111' 11cln'e nI' n ❑7S ❑P 'R nPolice JPTV/ [Court SPONSOR'S Bond ordinance 2559 was approved in December 2017. This amendment extends the latest Si! 1;\l.\RY bond maturity date to December 1, 2048 from December 1, 2038 as stated in the original bond ordinance and sets the Designated Representatives' authorizaiton expiration date as December 31, 2018 rather than one year from the effective date of ordinance 2559, as stated in the original bond ordinance. RP;A'1N\W'I;I) BY = C.O.W. Mtg. 1 CDN Comm n Trans &Infrastructure _ Arts Comm. DATE: 4/17/18 11 F'inance Comm. E Public Safety Comm. Comm. ❑ Planning Comm. CIF.\IR: QUINN E Parks COMMTITEE ITEM INFORMATION ITEM No. 6.C. S"l'.AI,I, S1 oI" SOR: PEGGY MCCARTHY OR1(;1\ \I .1GIk:NI),A D:VI I:: 04/23/18 A(;l1v1 .v I ] :v1 TI11,1. Amend bond ordinance 2559 to establish the latest bond maturity date as December 1, 2048 and the Designated Representatives' authorization expiration date at December 31, 2018. 4/23/18 Motion 1111{ Date n Resolution .111 Date ® Ordinance :11/L Date 05/7/18 n Bid Amara/ .1118 Date E Public I lean, :11th Dale Other I1N Dale C.A 1'l,:(;ORY ►1 Dicussion :1118 Date SPONSOR Council Ii1ayor ❑1IR [—DCI) 111' 11cln'e nI' n ❑7S ❑P 'R nPolice JPTV/ [Court SPONSOR'S Bond ordinance 2559 was approved in December 2017. This amendment extends the latest Si! 1;\l.\RY bond maturity date to December 1, 2048 from December 1, 2038 as stated in the original bond ordinance and sets the Designated Representatives' authorizaiton expiration date as December 31, 2018 rather than one year from the effective date of ordinance 2559, as stated in the original bond ordinance. RP;A'1N\W'I;I) BY = C.O.W. Mtg. 1 CDN Comm n Trans &Infrastructure _ Arts Comm. DATE: 4/17/18 11 F'inance Comm. E Public Safety Comm. Comm. ❑ Planning Comm. CIF.\IR: QUINN E Parks COMMTITEE RECOMMENDATIONS: SPoNs()R/;11Y C(711mn YIN. Finance Department rl l'.1: Unanimous Approval; Forward to Committee of the Whole COST IMPACT / FUND SOURCE is ,F,N1)1 ri,Rk RI?OU1R1D AMOUNT BUDGETED APPROPRIATION REQUIRED $ $ $ Fund Source: Comments: MTG. DATE RECORD OF COUNCIL ACTION 04/23/18 Forward to Regular Meeting MTG. DATE ATTACHMENTS 04/23/18 Informational Memorandum dated 04/11/18 (Updated after Finance Committee) Draft amending bond ordinance Overview of Debt Service Scenarios Time Schedule for Bond Issuance Minutes from the Finance meeting of 4/17/18 5/7/18 Ordinance 148 Citv of Tukwila Washington Ordinance No. AN ORDINANCE OF THE CITY COUNCIL OF THE CITY OF TUKWILA, WASHINGTON, AMENDING ORDINANCE NO. 2559 RELATING TO THE ISSUANCE OF ONE OR MORE SERIES OF LIMITED TAX GENERAL OBLIGATION BONDS TO FINANCE AND/OR REIMBURSE COSTS RELATED TO THE ACQUISITION OF LAND AND THE CONSTRUCTION, IMPROVEMENT AND EQUIPPING OF MAINTENANCE AND OTHER CITY FACILITIES; 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 adopted Ordinance No. 2559 on December 4, 2017, authorizing the issuance and sale of one or more series of limited tax general obligation bonds (the "Bonds") to pay aII or a portion of the costs of the Project and to pay costs of issuance for the Bonds; and WHEREAS, the sale and issuance of the Bonds is contingent on satisfaction of certain parameters relating to maximum interest rates, final maturity dates, redemption terms and principal maturities as set forth in Ordinance No. 2559; and WHEREAS, the Council now desires to amend Ordinance No. 2559 to extend the final maturity date for the Bonds and other matters related thereto, as provided herein; NOW, THEREFORE, THE CITY COUNCIL OF THE CITY OF TUKWILA, WASHINGTON, HEREBY ORDAINS AS FOLLOWS: Section 1. Definitions. Except as otherwise provided herein, definitions used in this ordinance shall have the meanings set forth in Ordinance No. 2559. W: Word Processing\Ordinances\LTGO Bonds -2018 -PW Shops Facility -amend Sec 12 4-30-18 PM:bjs Page 1 of 4 149 Section 2. Amendment to Ordinance No. 2559: Section 12 (Sale of Bonds). Section 12 (Sale of Bonds) of Ordinance No. 2559 is hereby amended to read as follows: 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. (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; W: Word Processing\Ordinances\LTGO Bonds -2018 -PW Shops Facility -amend Sec 12 4-30-18 150 PM:bjs Page 2 of 4 (2) the final maturity date for each series of Bonds is no later than December 1, 2048; (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 on December 31, 2018. 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 3. Severability; Ratification. Except as hereby amended, the remaining terms and conditions of Ordinance No. 2559 are hereby ratified and confirmed in all respects. All acts taken pursuant to the authority granted in this ordinance but prior to its effective date are hereby ratified and confirmed. 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. W: Word Processing\Ordinances\LTGO Bonds -2018 -PW Shops Facility -amend Sec 12 4-30-18 PM:bjs Page 3 of 4 151 Section 4. 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. Section 5. Effective Date. This ordinance or a summary thereof shall be published in the official newspaper of the City, and shall take effect and be in full force five days after passage and publication as provided by law. PASSED BY THE CITY COUNCIL OF THE CITY OF TUKWILA, WASHINGTON, at a Regular Meeting thereof this day of , 2018. ATTEST/AUTHENTICATED: Christy O'Flaherty, MMC, City Clerk APPROVED AS TO FORM BY: Pacifica Law Group LLP, Bond Counsel Allan Ekberg, Mayor Filed with the City Clerk: Passed by the City Council: Published: Effective Date: Ordinance Number: W: Word Processing\Ordinances\LTGO Bonds -2018 -PW Shops Facility -amend Sec 12 4-30-18 152 PM:bjs Page 4 of 4