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HomeMy WebLinkAboutCOW 2019-07-08 COMPLETE AGENDA PACKETTukwila City Council Agenda ALA was 908 Monday, July 8, •++ COMMITTEE OF THE WHOLE .. Allan Ekberg, Mayor Counci/members: •:• Dennis Robertson ❖ Verna Seal David Cline, City Administrator ❖ De'Sean Quinn •:• Kate Kruller Kathy Hougardy, Council President •;• Thomas McLeod ❖ Zak Idan 2019; 7:00 PM Tukwila City Hall Council Chambers 1. CALL TO ORDER / PLEDGE OF ALLEGIANCE 2. PUBLIC COMMENTS At this time, you are invited to comment on items not included on this agenda (please limit your comments to five minutes per person). To comment on an item listed on this agenda, please save your comments until the issue is presented for discussion. (Refer to back of agenda page for additional information.) 3. SPECIAL ISSUES a. A contract for health care broker services. b. Public Safety Plan: (1) An ordinance to issue Unlimited Tax General Obligation (UTGO) bonds related to the Public Safety Plan. (2) An ordinance to issue Limited Tax General Obligation (LTGO) bonds related to the Public Safety Plan. c. Council consensus on the Economic Development Plan outreach process. d. Solid waste utility tax and recycling surcharge: (1) An ordinance to increase the solid waste utility tax. (2) A Letter of Understanding to approve a recyclable market surcharge for commercial accounts. e. Code Enforcement contracts: (1) A contract with PCI Democon for demolition services. (2) A contract with EHSI, Inc., for asbestos abatement. Pg.1 Pg.13 Pg.17 Pg.37 Pg.77 Pg.81 Pg.85 Pg.89 Pg.103 Pg.107 Pg.115 4. REPORTS a. Mayor b. City Council c. Staff d. Council Analyst 5. MISCELLANEOUS 6. ADJOURNMENT City Tukwila Reasonable Clerk's Office www.tukwilawa.gov, Tukwila City Hall is ADA accessible. accommodations are available at public hearings with advance notice to the (206-433-1800 or TukwilaCityClerkPTukwilaWA.gov). This agenda is available at and in alternate formats with advance notice for those with disabilities. Council meetings are audio/video taped (available at w.tukwilawa.gov) HOW TO TESTIFY When recognized by the Presiding Officer to address the Council, please go to the podium and state your name and address clearly for the record. Please observe the basic rules of courtesy when speaking and limit your comments to 5 minutes. The Council appreciates hearing from citizens and members of the public, and may not be able to answer questions or respond during the meeting. PUBLIC COMMENTS Members of the public are given the opportunity to address the Council on items that are NOT included an the agenda during PUBLIC COMMENTS. Please limit your comments to 5 minutes. If you have a comment on an Agenda item, please wait until that item comes up for discussion to speak on that topic. SPECIAL MEETINGS/EXECUTIVE SESSIONS Special Meetings may be called at any time with proper public notice. Procedures followed are the same as those used in Regular Council meetings. Executive Sessions may be called to inform the Council of pending legal action, financial, or personnel matters as prescribed by law. Executive Sessions are not open to the public. PUBLIC HEARINGS Public Hearings are required by law before the Council can take action on matters affecting the public interest such as land -use laws, annexations, rezone requests, public safety issues, etc. Section 2.04.150 of the Tukwila Municipal Code states the following guidelines for Public Hearings: 1. The proponent shall speak first and is allowed 15 minutes for a presentation. 2. The opponent is then allowed 15 minutes to make a presentation. 3. Each side is then allowed 5 minutes for rebuttal. 4. Members of the public who wish to address the Council may speak for 5 minutes each. No one may speak a second time until everyone wishing to speak has spoken. 5. After each speaker has spoken, the Council may question the speaker. Each speaker can respond to the question, but may not engage in further debate at that time. 6. After the Public Hearing is closed and during the Council meeting, the Council may choose to discuss the issue among themselves, or defer the discussion to a future Council meeting, without further public testimony. Council action may only be taken during Regular or Special Meetings. COUNCIL MEETING SCHEDULE No Council meetings are scheduled on the 5th Monday of the month unless prior public notification is given. Regular Meetings - The Mayor, elected by the people to a four-year term, presides at all Regular Council Meetings held on the 1st and 3rd Mondays of each month at 7:00 p.m. and Special Meetings. Official Council action in the fonn of formal motions, adopting of resolutions and passing of ordinances can only be taken at Regular or Special Council meetings. Committee of the Whole Meetings - Councilmembers are elected for a four-year term. The Council President is elected by the Councilmembers to preside at all Committee of the Whole meetings for a one-year term. Committee of the Whole meetings are held the 2nd and 4th Mondays at 7:00 p.m. Issues discussed there are forwarded to Regular or Special Council meetings for official action. COUNCIL AGENDA SYNOPSIS Meet* Date Prepared by Ma or's review Colwell review 07/08/19 JP 07/15/19 JP ITEM INFORMATION ITEM No. 3.A. STAFF SPONSOR.: JUAN PADILLA ORIGIN 11, AGENDA DATE: 07/08/19 AGENDA ITEM TITLE Healthcare Broker Services 07/08/19 Motion Date 7/15/19 ['Resolution Akg Dale 0 Ordinance Aug Date Ell Bid A ward Aug Date [1] Public Hearing Aug Date E] Other AN Date CATEGORY a Discussion ri Mtg Date AIIg SPONSOR Count?' 1 flMqyor LIFinance LI Fire [ITS OP &R Police LIPIV LICotirt 0 FIR ODCD SPONSOR'S Approve a contract ith USI Insurance to become broker of record for healthcare benefit SUMMARY services. REVIEWED BY LI C.O.W. Mtg. CDN Comm Arts Comm. RI Finance Comm. 111 Public Safety Comm. Comm. [I] Planning Comm. CHAIR: MCLEOD Ill] Parks COMMIFIEE Trans &Infrastructure DATE: 06/24/19 RECOMMENDATIONS: SPONSOR/ADNIIN. COMMITTEE Human Resouces Unanimous Approval; Forward to C.O.W. COST IMPACT / FUND SOURCE EXPENDITURE REQUIRED AMOUNT BUDGETED APPROPRIATION REQUIRED $90,000 annually for 3 years $90,000 $0 Fund Source: SELF INSURED HEALTHCARE PLAN FUND #502 Comments: MTG. DATE RECORD OF COUNCIL ACTION 07/08/19 MTG. DATE ATTACHMENTS 07/08/19 Informational Memorandum dated 6/19/ 19 Contract for services with Exhibit A & 07/15/19 2 City of Tukwila Allan Ekberg, Mayor FOR ATIO AL E 0 DU TO: Finance Committee FROM: Juan Padilla, Human Resources Director BY: Erika Eddins, Human Resources Analyst CC: Mayor Ekberg DATE: June 19, 2019 SUBJECT: Healthcare Broker Contract ISSUE The Council is being asked to allow the mayor to execute a contract with USI insurance for healthcare broker services in an annual amount of $90,000, not to exceed $7,500.00 per month, for a 36 month period beginning mid -July 2019. BACKGROUND The City of Tukwila has had the same insurance broker for our self -funded health insurance program for many years. The broker's role is to help the City to manage the costs of both the retiree and active employee health insurance plans, as well as negotiate prices on life, long- term disability, and stop -loss insurance. With new leadership in the Human Resources department and following best practice to periodically go to the market to ensure competitive service and pricing, the City submitted a request for proposals (RFP) for healthcare broker services. DISCUSSION The City received five responses to the RFP, which were reviewed through a vetting process involving HR and Finance staff, Administration representatives and members of our labor partners. There was consensus from the group that USI was the clear winner based upon their industry experience and depth of service resources they offer. Sufficient funding for this contract exists within the 502 medical plan fund. The existing contract with the City's current broker will be terminated in late July to ensure a consistent transition between brokers. RECOMMENDATION The Finance Committee is being asked to forward this item to the Committee of the Whole, July 8, 2019, and then to Regular Meeting on July 15, 2019, for approval. ATTACHMENT Draft contract with Exhibits A and B 3 4 City of Tukwila 6200 Southcenter Boulevard, Tukwila WA 98188 CONTRACT FOR SERVICES Contract Number: This Agreement is entered into by and between the City of Tukwila, Washington, a non -charter optional municipal code city hereinafter referred to as "the City," and USI Insurance Services Northwest, hereinafter referred to as "the Contractor," whose principal office is located at 601 Union Street, Suite 1000, Seattle, WA 98101. WHEREAS, the City has determined the need to have certain services performed for its citizens but does not have the manpower or expertise to perform such services; and WHEREAS, the City desires to have the Contractor perform such services pursuant to certain terms and conditions; now, therefore, IN CONSIDERATION OF the mutual benefits and conditions hereinafter contained, the parties hereto agree as follows: 1. Scope and Schedule of Services to be Performed by Contractor. The Contractor shall perform those services described on Exhibit A attached hereto and incorporated herein by this reference as if fully set forth. In performing such services, the Contractor shall at all times comply with all Federal, State, and local statutes, rules and ordinances applicable to the performance of such services and the handling of any funds used in connection therewith. The Contractor shall request and obtain prior written approval from the City if the scope or schedule is to be modified in any way. 2. Compensation and Method of Payment. The City shall pay the Contractor for services rendered according to the rate and method set forth on Exhibit B attached hereto and incorporated herein by this reference. The total amount to be paid shall not exceed $90,000 at a rate of $7,500 per month. Contractor Budget. The Contractor shall apply the funds received under this Agreement within the maximum limits set forth in this Agreement. The Contractor shall request prior approval from the City whenever the Contractor desires to amend its budget in any way. 4. Duration of Agreement. This Agreement shall be in full force and effect for a period commencing July 16, 2019, and ending July 15, 2022, unless sooner terminated under the provisions hereinafter specified. 5. Independent Contractor. Contractor and City agree that Contractor is an independent contractor with respect to the services provided pursuant to this Agreement. Nothing in this Agreement shall be considered to create the relationship of employer and employee between the parties hereto. Neither Contractor nor any employee of Contractor shall be entitled to any benefits accorded City employees by virtue of the services provided under this Agreement. The City shall not be responsible for withholding or otherwise deducting federal income tax or social security or contributing to the State Industrial Insurance Program, or otherwise assuming the duties of an employer with respect to the Contractor, or any employee of the Contractor. CA Revised December 2016 Page 1 of 7 5 6. Indemnification. The Contractor shall defend, indemnify and hold the Public Entity, its officers, officials, employees and volunteers harmless from any and all claims, injuries, damages, losses or suits including attorney fees, arising out of or in connection with the performance of this Agreement, except for injuries and damages caused by the sole negligence of the Public Entity. Should a court of competent jurisdiction determine that this Agreement is subject to RCW 11 then, in the event of liability for damages arising out of bodily injury to persons or damages to property caused by or resulting from the concurrent negligence of the Contractor and the Public Entity, its officers, officials, employees, and volunteers, the Contractor's liability hereunder shall be only to the extent of the Contractor's negligence. It is further specifically and expressly understood that the indemnification provided herein constitutes the Contractor's waiver of immunity under Industrial Insurance, Title 51 RCW, solely for the purposes of this indemnification. This waiver has been mutually negotiated by the parties. The provisions of this section shall survive the expiration or termination of this Agreement. 7^ Insurance. The Contractor shall procure and maintain for the duration of the Agreement, insurance against claims for injuries to persons or damage to property which may arise from or in connection with the performance of the work hereunder by the Contractor, their agents, representatives, employees or subcontractors. Contractor's maintenance of insurance, its scope of coverage and limits as required herein shall not be construed to limit the liability of the Contractor to the coverage provided by such insurance, or otherwise limit the City's recourse to any remedy available at law or in equity. A. Minimum Scope ofInsurance. Contractor shall obtain insurance Ofthe types and with the limits described below: 1. Automobile Liability insurance with 2 nniOhnuD1 combined single limit for bodily i jury and property damage Of$1.00O.UOO per accident. Automobile liability insurance shall cover all owned, non -owned, hired and leased vehicles. Coverage shall be written on Insurance Services Office USC)\ form CA 00 01 Or a substitute form providing aqDiV@|eML liability coverage. If necessary, the .policy shall beendorsed tOprovide contractual liability coverage. 2. Commercial General Liability insurance with limits no less than $1,000,000 each occurrence, $2.000.000geOe[8| aggregate aOd$2,QOO.OQO prod WCt3-n0nnp|eted operations aggregate limit. Commercial General Liability insurance shall be as least at broad as ISO occurrence form CG OO 01 and shall cover liability arising from pranliSes, ope[@ti0DS, independent cOnt[aCtOrs, prod UCts+:onlp|eted operadiOnS, stop gap liability, personal injury and advertising injury, and liability assumed under aninsured contract. The Commercial General Liability insurance shall beendorsed toprovide oper project genero|aggregate limit using ISO form CG 25030509or an equivalent endorsement. There shall benoexclusion for liability arising from explosion, collapse O[underground property damage. The City shall benamed os8Dadditional insured under the Contractor's [|oDlnO8[C|8| General Liability insurance policy with respect t0the work performed for the City using ISO Additional Insured endorsement CG 20 10 10 01 and Additional Insured -Completed Operations endorsement CG 2O371OO1D[substitute endorsements providing atleast aobroad coverage. 5. Professional Liability |nSU[oOce with 8miOinlUnn coverage Of $1.000.000 per claim and $3,000,000 aggregate. Contractor shall provide evidence of such coverage in a manner and r� acceptable tOtheCityinthe Qty'osole discretion. Cancellation ofthe required insurance Sh8|| automatically result in termination of this Agreement. 4. Workers' Compensation coverage as required by the |ndUathg| Insurance laws of the State of Washington. B. Other Insurance Provision. The Contractor's Automobile Liability and Commercial General Liability insurance policies are to contain, or be endorsed to contain that they shall be primary CA Revised December 2016 Page 2 of 7 insurance with respect to the City. Any insurance, self-insurance, or insurance | coverage maintained bythe City shall be excess Ofthe Contractor's insurance and shall not contribute with it. C. Acceptability of Insurers. Insurance is to be placed with insurers with a current A.M. Best rating Ofnot less than /\:\/||. O. Verification of Coverage. Contractor shall furnish the City with original certificates and o copy of the anO8Od8U}ry endorsements, including but not necessarily limited to the additional insured endUrsenlent, evidencing the insurance requirements of the Contractor before commencement of the work. Upon request by the City, the Contractor shall furnish certified copies of all required insurance policies, including endorsements, required in this Agreement and evidence Of all subcontractors' coverage. E. Subcontractors. The Contractor shall have sole responsibility for determining the insurance coverage and limits ired. if any, to be obtained by sUbCVOtr@[tVro' which determination shall be made inaccordance with reasonable and prudent business practices. F. Notice of Cancellation. The Contractor shall provide the City and all Additional Insureds for this work with written notice Of any policy CaOce||atiOO, within two business days of their receipt of such notice. G. Failure toMaintain Insurance. Failure onthe part Vfthe Contractor homaintain the insurance aa required shall constituteeh | breach of contract, upon which the City may, after giving five business days notice to the Contractor to correct the breach, immediately terminate the contract or, at its discretion, procure or renew such insurance and pay any and all premiums in connection therewith, with any sums so expended to be repaid to the City on demand, or at the sole discretion of the City, offset against funds due the Contractor from the City. 8' Record Keapinqand Reporting, A. The Contractor shall maintain accounts and records, including penaonne, propertv, financial and programmatic records which sufficiently and properly reflect all direct and indirect costs of any nature expended and services performed iMthe performance ofthis Agreement and other such records .eo may bedeemed necessary bythe City toensure the performance ofthis Agreement. B. These records shall be maintained for g period of seven (7) years after termination honanf unless permission todestroy them is granted by the office Ofthe archivist in accordance with RCVVChapter 4O.14and bVthe City. S. Audits and Inspections. The records and documents with respect to all matters covered by this Agreement Shg|| be subject at all times to inspection, review oraudit by law during the performance of this Agreement. 10.Termdnation. This Agreement rnoyatonytinnebeterminmtedbytheQtygiviOgtotheContractorthirty /30\ d@VS written notice ofthe (�ity'S intention to terminate the same. Failure to provide products on `ch'edU|er0ayresu|fiDContractt8rnliOaUDn. Ifthe Contractor's insurance coverage jGcanceled for any reason, the City shall have the right to terminate this Agreement immediately. 11.Discrimination Prohibited. The Consultant, with regard tOthe work performed bvitunder this Agreement, will not discriminate On the grounds Of race. religion, creed, color, national origin, age, veteran status, sex, sexual orientation. gender identity, marital status, political 8ffi|iati0n, the presence of any disability, or any other protected class status under state or federal law, in the selection and retention ofemployees orprocurement ofmaterials orsupplies. 12.AamiQnmemt and Subcontract. The Contractor shall not ooSigD or subcontract any portion of the services contemplated by this Agreement without the written consent of the City. CARevised December 2O1G Page 3of7 13' EnDrmAqmamrnent; Modification. This Agreement, together with attachments or addenda, represents the entire and integrated Agreement between the City and the Contractor and supersedes all prior negotiations, [epneSeOt8tions, or agreements written or oral. No amendment or modification of this Agreement shall beofany force or effect unless itiginwriting and signed b«the parties. 14. Sgvmnabi|itV and Survival. If any tornn, condition or provision ofthis Agreement is declared void or unenforceable or limited in its application or effect, such event shall not affect any other provisions hereof and all other provisions shall ne[DoiM fully enforceable. The provisions of this Agreement, which bvtheir sense and context are reasonably intended fOsurvive the completion, expiration orcancellation ofthis Agreement, shall survive termination Ofthis Agreement. 15. Notices. Notices to the City of Tukwila shall be sent to the following address: City Clerk, City ofTukwila O2OOGnuthcenterBlvd. TUkVVi|a, WaShiOgtUn9A18O Notices tothe Contractor shall be sent tothe address provided bythe Contractor upon the signature line below. 16.App|icab|g Law; Venue; AttorneV`o Fees. This Agreement ohoU be governed by and construed in accordance with the |avvS of the State Of Washington. In the event any Suit. arbitration, or other proceeding isinstituted tQenforce any term 0fthis Agreement,the parties specifically understand and agree that Venue shall be properly |@|d in King County. 2�h|n�tQ�� The p[eVg|||ng party in any Such action aho|| be entitled to its attOnley'a fees and costs of suit. DATED this day of .20 � CITY OF TUKWILA USI Insurance Services Northwest Allan Ekberg, Mayor ENT|C/\TE[): By: Todd McMahon, Chief Compliance Officer, SVPNorthwest Region Address: 001 Union Street, GUbe1DOO City Clerk, Christy O'Flaherty Seattle, WA 98101 APPROVED AGTOFORM: Office of the City Attorney CARevised December 2O1G Page 4of7 EXHIBIT INSURANCE BROKERAGE SERVICES Section tO Analytical Services and Plan Administration: 11Design Ofhealth care plans, cost -containment and other plan design recommendations 1.1.1 Review benefit designs and compare to{itV'sstrategic objectives. Recommend modifications where appropriate and assist the City in strategic benefit planning. /\OnU8||y 1.1.2 Evaluate the impact of plan modifications on employees and the potential savings tOthe City. As appropriate 1.1,3Eva|uate alternate carriers and product offerings. Annually 1.1.4 Provide benefit b8nChOngrkiOg. AS appropriate 1.1'5/\ct as an advocate of the participants and City in resolving difficult claims and administrative problems. 12 Preparation of bid specifications (RFP) (as needed) 1.2.1 Consult with the City to establish objectives for market review and identify potential carriers o[vendors. Annually 1.2.2 Assemble benefit rate and claim data for inclusion in RFF\ Annually 1.2.3Deliver RFPtoselected vendors and provide any requested additional information. Annually 1.3 Analysis of proposals and presentation of findings 1.3.1 Compare costs, funding, benefits, contracts, negotiated provider discounts, employee network disruption issues, financial strength and anticipated service level for each carrier o[vendor, asappropriate. Annually 1.3.2Present US|'orecommended carriers orvendors. Recommendation supported bvdetailed analysis. ADnU8||y 1.3.3 Organizefinalist meetings with the City, ifappropriate. Annually 1.4 Renewal analysis and negotiation 1.4.1 ExG|U@te carrier underwriting practices. Annually 1.4`2 Negotiate with carriers based on internal underwriting analysis and nO8[Ket trends. Annually 1.4.3Actuarial services and certification Ofrates and retiree subsidy. Annually 1.4.5Assist in providing detailed annual financial accounting. Annually 1'5 Reporting/Servicing Meetings 1-5.1 C1@inlS and utilization reporting or summary. Monthly 1.5.2Review Ofannual accounting (as @ppPop[iateA. /\MnUa||y 1.5.3 Benefit Resource Center Reports Quarterly 1.5.4 Meet. at least quarterly, with Health Care Committee, and as desired, with City representatives todiscuss claims experience, administration services, cost containment ideas, benefit design, new programs and other employee benefit plan issues and problems. Quarterly C4Revised December 2016 Page 5of7 Section 2.0 Account Management Services: 2.1 Contract Review 2.1.1 Perform contract and Benefit Booklet review for each brokered plan Annually 2.1.2 Compliance review and support As appropriate 2.1.3 Assist the City (Plan Sponsor) to comply with Federal and State Laws impacting benefit Plans, i.e., COBRA, PPACA.TEFRA. H|PAA As Appropriate 2.1.4 Evaluate cUrrenUpPDSpectiVeTPAS Annually 2.1.5 Assist with billing and eligibility problems As appropriate 3.1.6 Monitor TPA for compliance with contract terms. As appropriate 2.2 Employee Meetings 2?1 Employee meetings and/or benefit fairs will be limited to @ rnaXinnunn Of(1)one per fifty 0)enlp|OVe8S 2.22BeDeft fairsMlaybe selected inlieu ofemployee meetings and will belimited tO (1) per 100 benefit eligible employees. 3.3 Employer/Employee Communications Support 2.3.1 Consolidated Benefit Summary and Mobile /\ppBuild and Updates 2.3.2US|Insider and Health & Wellness articles 2.3.3 Service Calendar 2-3.4Teohnico| Bulletins 2.3.5VVeUneso Consulting, Program Design and Support 2~3.6 U8| Benefit Resource Center —Advocacy Unit available to all members 6onn- 6pMn Pacific Time 2.4 Tax Reporting 2.4.1P[Ovde signature ready 5500 filings, along with other plan compliance materials as required by the Employee Benefits Security Administration. /\ODuoUy Annually Annually Monthly Annually As appropriate As appropriate AeAppropriate Annually CARevised December 2O1G Page Gnf7 10 1.1 EXHIBIT BROKERAGE FEES & COMMISSION SCHEDULE U8|fees will beiOeffect for thirty-six (3G) months following the date this Contract for Services iSsigned by both parties. In consideration of the performance of the Services as described in Exhibit A, U8| ahoU be compensated as outlined below: UG| Fees: Not to exceed $7.500 per nnonUl except where an additional service fee of$5O per nlOpth will be charged to @CCVuOtS more than thirty (O) days past due. Fees. net of commission income received by USI from the insurance carriers, will be billed by USI on a monthly basis and are due bythe end Ofthe month for which brokerage services are provided. 12 For specific services that are requested inwriting bvthe Client, but not outlined hlthe description of services to be provided by U8| as outlined OM Exhibit 8. and where UG| has provided a not to be exceeded by cost estimate for the requested service agreed to by the City . the City will be billed for work performed. The cost for these services will be billed on a per hour or per project basis and included in the next available monthly invoice. NO services will be performed without prior written approval from the Client. 1.3 US|[eS8rV8s the right to change the fees outlined in this section after expiration of this 36 month term. The City will receive a minimum of thirty (30) days notice prior to any changes in fees. 1.4 Fees are fixed for a period of 3years and subject tonegotiation thereafter. CARevised December 201O Page 7nf7 11 12 COUNCIL AGENDA SYNoPsIs Meeting Date Prepared by Ma or's review Council review 07/08/19 Vicky 01 07/15/19 ITEM INFORMATION ITEM NO. 3.B. STAFF SPONSOR: VICKY CARLSEN ORIGINAL AGENDA DATE: 7/ 8/19 AGENDA ITEM TITLE Approve ordinances to issue UTGO and LTGO debt in 4th quarter 2019 CA TEGORY 1 DiJcunron 07/08/19 Motion Dale 07/15/19 11Roolution Mtg Date E Ordinance Mtg Date El Bid Award MIA Date El Public Hearing Mg Date Ell Other Meg Date Mtg Date Meg SPONSOR Council IMayor Ell-IR ODCD A Fznance LjFire LITS LJP&R Police EPW Court SPONSOR'S Approve ordinance to issue UTGO debt not to exceed $40.885 million and approve SummARy ordinance to issue LTGO not to exceed $25 million; both in 4th quarter of 2019 REVIEWED BY El C.O.W. Mtg. I CDN Comm el Finance Comm. E Public Safety Comm. Comm. 111 Planning Comm. CELAIR: MCLEOD Trans &Infrastructure Arts Comm. 0 Parks commi 1-1EE DATE: 06/24/19 RECOMMENDATIONS: SPONSOR/ADMIN. CONIMIT1EE Finance Unanimous approval; Forward to Committee of the Whole COST IMPACT / FUND SOURCE EXPENDI TURE REQUIRED AMOUNT BUDGETED APPROPRIATION REQUIRED $ $ $ Fund Source: Comments: MTG. DATE RECORD OF COUNCIL ACTION 07/08/19 07/ /19 MTG. DATE ATTACHMENTS 07/08/ 19 Informational Memorandum dated 6/19/2019 UTGO Debt Issue Ordinance in Draft Form LTGO Debt Issue Ordinance in Draft Form Powerpoint General Obligation Debt Service Attachment added after Finance Corn. 07/15/19 13 14 City of Tukwila Allan Ekberg, Mayor INFOR ATIO AL E ORANDU TO: Finance Council Committee FROM: Vicky Carlsen, Finance Director CC: Mayor Ekberg DATE: June 19, 2019 SUBJECT: Public Safety Plan Unlimited Tax General Obligation Bond (UTGO) and Limited Tax General Obligation Bond (LTGO) Ordinances Updated after Finance Com. to add General Obligation Bond Debt Service ISSUE Approve an ordinance authorizing the issuance of not to exceed $$40.885 million in UTGO bonds and not to exceed $25 million in LTGO bonds; both for the Public Safety Plan. BACKGROUND On July 18, 2016, the City Council authorized placement of the $77.385 million Public Safety Plan bond measure on the November 8, 2016 ballot and was approved by voters on November 8, 2016. Also, in November of 2016, the City Council approved an ordinance authorizing the issuance of up to $36.5 million in UTGO bonds to provide sufficient resources for the first 2 I/2 years of expenditures. The remaining UTGO bonds would be issued in 2019 as outlined in the D-20 Financial Framework approved by Council in 2018 and as approved in the 2019 — 2020 biennial budget. The adopted budget also includes issuing LTGO bonds of not to exceed $25 million. It is currently estimated that both debt issuances would occur during the 4th quarter of 2019. DISCUSSION Based on the cash flow projections received from SOJ in April of 2019, the Public Safety Plan will need additional funding in the 4th quarter of 2019. As mentioned above, the 2019 — 2020 biennial budget includes a provision to issue both UTGO not to exceed $40.885 million and LTGO not to exceed $25 million. Proceeds from the UTGO bond measure would provide funding for the Justice Center and fire stations but not the Public Works Shops facility. The LTGO issue is currently budgeted to allow for up to $7.5 million to fund the Public Works Shops facility and the remaining balance of $17.5 million as funding for the Justice Center and fire stations. In order to reduce debt issuance costs, the LTGO debt issue will be timed to occur within a few weeks of issuing the UTGO debt. Both the UTGO and LTGO issues will not exceed the authorized amount and both will be repaid over 20 years. 15 INFORMATIONAL MEMO Page 2 FINANCIAL IMPACT The adopted budget includes debt service of $875,000 beginning in 2020 for the LTGO bond issue with the general fund contributing 50% of the debt service and the utility funds contributing the other 50%. Given current market conditions, it is anticipated that the budget is sufficient to cover the proposed bond issue. However, if interest rates rise significantly between now and when the bonds are issued in 4th quarter, an adjustment to the budget could be necessary. RECOMMENDATION Council is being asked to approve both ordinances and consider these items at the July 8, 2019 Committee of the Whole meeting and subsequent July 15, 2019 Regular meeting. ATTACHMENTS Draft UTGO bond ordinance Draft LTGO bond ordinance PFM slide presentation General Obligation Bond Debt Service 16 AN ORDINANCE OF THE CITY COUNCIL OF THE CITY OF TUKWILA, WASHINGTON, AUTHORIZING THE ISSUANCE OF UNLIMITED TAX GENERAL OBLIGATION BONDS OF THE CITY IN THE AGGREGATE PRINCIPAL AMOUNT OF NOT TO EXCEED $40,885,000, TO FINANCE COSTS RELATED TO ITS PUBLIC SAFETY PLAN AND PAYING 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, at an election held in the City of Tukwila, Washington (the "City") on November 8, 2016, the City submitted the question to the qualified electors of the City of whether the City shall issue unlimited tax general obligation bonds in the aggregate principal amount of not to exceed $77,385,000 (the "Bond Authorization") to provide the funds necessary to implement its Public Safety Plan, which includes replacing three fire stations, financing critical items such as fire trucks and other life/safety equipment as necessary, and constructing a Justice Center to hold the Tukwila Police Department and Municipal Court, as identified in Ordinance No. 2509 (the "Election Ordinance") passed by the City Council on August 1, 2016 (collectively, the "Project"); and WHEREAS, the number and proportion of the qualified electors of the City required by law for the adoption thereof voted in favor of the Bond Authorization and the election results were certified by King County Elections, as ex officio supervisor of elections in King County, Washington, on November 29, 2016; and WHEREAS, pursuant to the Bond Authorization and Ordinance No. 2514, adopted on November 21, 2016, the City issued its Unlimited Tax General Obligation Bonds, 2016, and deposited into a designated fund a portion of the sale proceeds thereof in the amount of $36,500,000 (consisting of the par amount of $32,990,000 plus original issue premium of $3,510,000); and W: Word Processing\Ordinances\UTGO Bonds -Public Safety Plan 6-18-19 VC:bjs Review and analysis by Barbara Saxton Page 1 of 16 17 WHEREAS, it is deemed necessary and advisable that the City authorize the issuance of the second series of such Unlimited Tax General Obligation bonds (the "Bonds") to provide part of the funds necessary to finance the Project and to pay costs of issuance for the Bonds; and WHEREAS, this Council wishes to delegate authority to the Finance Director, or his or her designee (the "Designated Representative"), for a limited time, to approve the method of sale and the interest rates, maturity dates, redemption terms and principal maturities for the bonds within the parameters set by this ordinance; and WHEREAS, the Bonds shall be sold by negotiated or competitive public sale 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 Bonds (including persons holding Bonds through nominees, depositories or other intermediaries). Bond Authorization means the Unlimited Tax General Obligation bonds in the aggregate principal amount of $77,385,000 authorized by the Election Ordinance and approved by the requisite number of voters of the City at a special election held on November 8, 2016 for the purpose of providing the funds necessary to carry out the Project and to pay the costs of issuance of such bonds. 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 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 the Bonds, maintained pursuant to Section 149(a) of the Code. Bond Registrar means, initially, the fiscal agent of the State, for the purposes of registering and authenticating the Bonds, maintaining the Bond Register, effecting transfer of ownership of the Bonds and paying interest on and principal of the Bonds. W: Word Processing \Ordinances\UTGO Bonds -Public Safety Plan 6-18-19 VC:bjs Review and analysis by Barbara Saxton Page 2 of 16 18 Bonds mean the City's Unlimited Tax General Obligation Bonds, 20XX, or other such series designation as approved by the Designated Representative, authorized to be issued pursuant to the terms of this ordinance. Certificate of Award means the certificate, if any, for the purchase of any Bonds sold by competitive sale awarding the Bonds 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 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. City Clerk means the duly appointed and acting City Clerk of the City or the successor to the duties of that office. Closing means the date of delivery of the Bonds to the Underwriter. Code means the Internal Revenue Code of 1986 as in effect on the date of issuance of the Bonds or (except as otherwise referenced herein) as it may be amended to apply to obligations issued on the date of issuance of the 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 the 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 Finance Director, or his or her designee. 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 the Bonds pursuant to Section 4 of this ordinance. Election Ordinance means Ordinance No. 2509 passed by the Council on August 1, 2016. W: Word Processing\Ordinances\UTGO Bonds -Public Safety Plan 6-18-19 VC:bjs Review and analysis by Barbara Saxton Page 3 of 16 19 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. Federal Tax Certificate means the certificate executed by the Designated Representative setting forth the requirements of the Code for maintaining the tax exemption of interest on the 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 direct or indirect obligations of, or obligations the principal of and interest on which are unconditionally guaranteed by, the United States of America. Letter of Representations means the Blanket Issuer Letter of Representations given by the City to DTC, as amended from time to time. 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 documents prepared and delivered in connection with the issuance of the 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. For so long as the Bonds are held in book -entry only form, DTC or its nominee shall be deemed to be the sole Registered Owner. 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. W: Word Processing \Ordinances \UTGO Bonds -Public Safety Plan 6-18-19 VC:bjs Review and analysis by Barbara Saxton 20 Page 4 of 16 Sale Document means the Bond Purchase Contract or Certificate of Award, if any, executed by the Designated Representative in connection with the sale of the 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 Bonds as determined to be necessary by the Designated Representative. State means the State of Washington. Underwriter means any underwriter, in the case of a negotiated sale, or initial purchaser, in the case of a competitive sale, the Bonds selected pursuant to Section 12. Section 2. Authorization of the Project. The Bonds are being issued to finance and/or reimburse the City for costs related to implementing its Public Safety Plan, which includes, but is not limited to: (a) replacing three fire stations; (b) financing critical items such as fire trucks and other life/safety equipment as necessary; and (c) constructing a Justice Center to hold the Tukwila Police Department and Municipal Court, as authorized and further described in the Election Ordinance, which description is incorporated herein by this reference (the "Project"); and to pay costs of issuance for the Bonds. Section 3. Authorization of Bonds and Bond Details. For the purpose of paying and/or reimbursing the City for costs of the Project and paying costs of issuance of the Bonds as authorized by the Election Ordinance and by the qualified electors of the City at a special election held on November 8, 2016, the City is hereby authorized to issue and sell unlimited tax general obligation bonds in an aggregate principal amount of not to exceed $40,885,000 (the "Bonds"). Notwithstanding anything in this ordinance to the contrary, the issuance of the Bonds shall be subject to satisfaction of the conditions set forth in Section 12 of this ordinance. The Bonds shall be general obligations of the City and shall be designated "City of Tukwila, Washington, Unlimited Tax General Obligation Bonds, 20XX" with additional series designation or other such designation as determined to be necessary by the Designated Representative. The Bonds shall be dated as of the date of Closing; shall be fully registered as to both principal and interest; shall be in the denomination of $5,000 each, or any integral multiple thereof, within a 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 from their date payable on the dates and commencing as provided in the Sale Document; and shall mature on the dates and in the principal amounts set forth in the Sale Document, as approved and executed by the Designated Representative pursuant to Section 12 of this ordinance. Section 4. Registration, Exchange and Payments. (a) 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 state fiscal agencies. The City shall cause a bond W: Word Processing \Ordinances \UTGO Bonds -Public Safety Plan 6-18-19 VC:bjs Review and analysis by Barbara Saxton Page 5 of 16 21 register to be maintained by the Bond Registrar. So long as any Bonds remain outstanding, the Bond Registrar shall make all necessary provisions to permit the exchange or registration or transfer of 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 Bonds transferred or exchanged in accordance with the provisions of such 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 Bonds. (b) Registered Ownership. The City and the Bond Registrar, each in its discretion, may deem and treat the Registered Owner of each 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(g), but such Bond may be transferred as herein provided. All such payments made as described in Section 4(g) shall be valid and shall satisfy and discharge the liability of the City upon such Bond to the extent of the amount or amounts so paid. (c) DTC Acceptance/Letters of Representations. The 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 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 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 any consent given or other action taken by DTC (or any successor depository) as the Registered Owner. For so long as any 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 Bonds. (d) Use of Depository. (1) The Bonds shall be registered initially in the name of "Cede & Co.", as nominee of DTC, with one Bond maturing on each of the maturity dates for the Bonds in a denomination corresponding to the total principal therein designated to mature on such date. Registered ownership of such Bonds, or any portions thereof, may not thereafter be transferred except: (A) to any successor of DTC or its nominee, provided 22 W: Word Processing \Ordinances \UTGO Bonds -Public Safety Plan 6-18-19 VC:bjs Review and analysis by Barbara Saxton Page 6 of 16 that any such successor shall be qualified under any applicable laws to provide the service proposed to be provided by it; (B) to any substitute depository appointed by the Finance Director pursuant to subsection (2) below or such substitute depository's successor; or (C) to any person as provided in subsection (4) below. (2) 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. (3) In the case of any transfer pursuant to clause (A) or (B) of subsection (1) above, the Bond Registrar shall, upon receipt of all outstanding Bonds together with a written request on behalf of the Finance Director, issue a single new 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. (4) 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 Bonds that such owners be able to obtain physical Bond certificates, the ownership of such 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 Bonds as herein provided in any authorized denomination. Upon receipt by the Bond Registrar of all then outstanding Bonds together with a written request on behalf of the Finance Director to the Bond Registrar, new 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. (e) Registration of Transfer of Ownership or Exchange; Change in Denominations. The transfer of any Bond may be registered and Bonds may be exchanged, but no transfer of any such Bond shall be valid unless it is surrendered to the Bond Registrar with the assignment form appearing on such 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 Bond and shall authenticate and deliver, without charge to the Registered Owner or transferee therefor, a new Bond (or Bonds at the option of the new Registered Owner) of the same 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 Bond, in exchange for such surrendered and cancelled Bond. Any Bond may be surrendered to the Bond Registrar and exchanged, without charge, for an equal aggregate principal amount of Bonds of the same date, maturity, and interest rate, in any authorized denomination. The Bond Registrar shall not be obligated to register the W: Word Processing \Ordinances\UTGO Bonds -Public Safety Plan 6-18-19 VC:bjs Review and analysis by Barbara Saxton Page 7 of 16 23 transfer of or to exchange any Bond during the 15 days preceding any principal payment or redemption date. (f) Bond Registrar's Ownership of Bonds. The Bond Registrar may become the Registered Owner of any 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 Bonds. (g) Place and Medium of Payment. Both principal of and interest on the Bonds shall be payable in lawful money of the United States of America. Interest on the Bonds shall be calculated on the basis of a year of 360 days and twelve 30-day months. For so long as all 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 Bonds are no longer held by a depository, interest on the 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 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 Bonds shall be payable upon presentation and surrender of such Bonds by the Registered Owners at the designated office of the Bond Registrar. If any 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 Bond until the Bond is paid. Section 5. Redemption Prior to Maturity and Purchase of Bonds. (a) Mandatory Redemption of Term Bonds and Optional Redemption. The Bonds shall be subject to mandatory redemption to the extent, if any, set forth in the Sale Document and as approved by the Designated Representative pursuant to Section 12. The Bonds shall be subject to optional redemption on the dates, at the prices and under the terms set forth in the Sale Document approved by the 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. For as long as the Bonds are held in book -entry only form, the selection of particular Bonds within a maturity to be redeemed shall be made in accordance with the operational arrangements then in effect at DTC. If the Bonds are no longer held by a depository, the selection of such Bonds to be redeemed and the surrender and reissuance thereof, as applicable, shall be made as W: Word Processing \Ordinances\UTGO Bonds -Public Safety Plan 6-18-19 VC:bjs Review and analysis by Barbara Saxton 24 Page 8 of 16 provided in the following provisions of this subsection (c). If the City redeems at any one time fewer than all of the Bonds having the same maturity date, the particular Bonds or portions of Bonds of such 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 a Bond of a denomination greater than $5,000, the City and the Bond Registrar shall treat each Bond as representing such number of separate Bonds each of the denomination of $5,000 as is obtained by dividing the actual principal amount of such Bond by $5,000. In the event that only a portion of the principal sum of a Bond is redeemed, upon surrender of such 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, a Bond or Bonds of like maturity and interest rate in any of the denominations herein authorized. (d) Notice of Redemption. (1) Official Notice. For so long as the Bonds 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 Bonds are no longer held by a depository), notice of redemption shall be given in the manner hereinafter provided. Unless waived by any owner of 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 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 Bonds are to be redeemed, the identification by series and maturity (and, in the case of partial redemption, the respective principal amounts) of the Bonds to be redeemed, (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 Bond or portion thereof called for redemption, and that interest thereon shall cease to accrue from and after said date, and W: Word Processing \Ordinances\UTGO Bonds -Public Safety Plan 6-18-19 VC:bjs Review and analysis by Barbara Saxton Page 9 of 16 25 (F) the place where such 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 Bonds or portions of 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 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 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 Bonds or portions of 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 Bonds or portions of Bonds shall cease to bear interest. Upon surrender of such Bonds for redemption in accordance with said notice, such 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 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 Bonds being redeemed; (B) the date of issue of the Bonds as originally issued; (C) the rate of interest borne by each Bond being redeemed; (D) the series and maturity date of each Bond being redeemed; and (E) any other descriptive information needed to identify accurately the 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 additional information as the City shall deem appropriate, but such mailings shall not be a condition precedent to the redemption of such 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. W: Word Processing \Ordinances \UTGO Bonds -Public Safety Plan 6-18-19 VC:bjs Review and analysis by Barbara Saxton 26 Page 10 of 16 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 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. From the money derived from the sale of the Bonds: (a) Net premium (premium minus costs of issuance) shall be deposited in the Debt Service Fund and/or the Project Fund and used to pay debt service on the Bonds coming due on the next upcoming interest payment date or costs of the Project, respectively; and (b) The balance of the proceeds of the Bonds shall be deposited in the Project Fund and shall be used solely to pay the allocable cost of issuing and selling the Bonds and to finance costs of the Project as authorized by the Election Ordinance. None of the proceeds of the Bonds shall be used for the replacement of equipment or for other than a capital purpose. 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. W: Word Processing \Ordinances\UTGO Bonds -Public Safety Plan 6-18-19 VC:bjs Review and analysis by Barbara Saxton Page 11 of 16 27 Section 9. Tax Covenants. The City will take all actions necessary to assure the exclusion of interest on the Bonds from the gross income of the owners of the 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. W: Word Processing \Ordinances\UTGO Bonds -Public Safety Plan 6-18-19 VC:bjs Review and analysis by Barbara Saxton 28 Page 12 of 16 (h) Compliance with Federal Tax Certificate. The City will comply with the provisions of the Federal Tax Certificate with respect to the 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. 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 that, unless the principal of and interest on the Bonds are paid from other sources, it will make annual levies of taxes without limitation as to rate or amount upon all of the property in the City subject to taxation in amounts sufficient to pay such principal and interest as the same shall become due. All of such taxes and any of such other money so collected shall be paid into the Debt Service Fund. None of the money in the Debt Service Fund shall be used for any other purpose than 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 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. W: Word Processing \Ordinances\UTGO Bonds -Public Safety Plan 6-18-19 VC:bjs Review and analysis by Barbara Saxton Page 13 of 16 29 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 the Designated Representative, for a limited time, the authority to determine the method of sale for the Bonds and to approve the final interest rates, maturity dates, redemption terms and principal maturities for the Bonds. (b) Negotiated Bond Sale. If the Designated Representative determines that the Bonds are to be sold by negotiated public sale, the Designated Representative shall solicit proposals from one or more qualified underwriting firms and 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. (c) Competitive Sale. If the Designated Representative determines that the Bonds are to be sold at a competitive public sale, the Designated Representative shall: (1) establish the date of the public sale; (2) establish the criteria by which the successful bidder will be determined; (3) request that a good faith deposit accompany each bid; (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. The 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. (d) Sale Parameters. Subject to the terms and conditions set forth in this Section 12, the 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 the Bonds in the manner provided hereafter so long as: (1) the aggregate principal amount of the Bonds does not exceed $40,885,000; (2) the final maturity date for the Bonds is no later than 20 years from Closing; (3) the aggregate purchase price for the Bonds shall not be less than 100.5% of the aggregate stated principal amount of the Bonds, excluding any original issue discount; and (4) the true interest cost for the Bonds (in the aggregate) does not exceed 4.50%. Subject to the terms and conditions set forth in this section, the Designated Representative is hereby authorized to execute the appropriate Sale Document on behalf of the City. W: Word Processing \Ordinances\UTGO Bonds -Public Safety Plan 6-18-19 VC:bjs Review and analysis by Barbara Saxton 30 Page 14 of 16 Following the execution of the Sale Document, the Designated Representative shall provide a report to the Council describing the final terms of the Bonds 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. If a Sale Document for the Bonds has not been executed within one year after the effective date of this ordinance, the authorization for the issuance of the Bonds shall be rescinded, and the Bonds shall not be issued nor their sale approved unless such Bonds are re -authorized by ordinance of the Council. The ordinance re- authorizing the issuance and sale of such Bonds may be in the form of a new ordinance repealing this ordinance in whole or in part or may be in the form of an amendatory ordinance approving a Sale Document or establishing terms and conditions for the authority delegated under this Section 12. (e) Delivery of Bonds; Documentation. Upon the passage and approval of this ordinance and execution of the Sale Document, the proper officials of the City, including the Designated Representative, the City Administrator, the Mayor and the City Clerk, are authorized and directed to undertake all action necessary for the prompt execution and delivery of the Bonds to the Underwriter 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 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 the Bonds as provided therein, if such insurance is determined by the Designated Representative to be in the best interest of the City. Section 13. Preliminary and Final Official Statements. The Designated Representative is hereby authorized to deem final the preliminary Official Statement relating to the Bonds for the purposes of the Rule. The 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 the Bonds and the distribution of the final Official Statement 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. The City covenants to execute and deliver at the time of Closing a Continuing Disclosure Certificate. The Designated Representative is hereby authorized to execute and deliver a Continuing Disclosure Certificate upon the issuance, delivery and sale of the Bonds with such terms and provisions as such officer shall deem appropriate and in the best interests of the City. Section 15. Lost, Stolen or Destroyed Bonds. In case any Bonds are lost, stolen or destroyed, the Bond Registrar may authenticate and deliver a new Bond or Bonds of like 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 W: Word Processing \Ordinances\UTGO Bonds -Public Safety Plan 6-18-19 VC:bjs Review and analysis by Barbara Saxton Page 15 of 16 31 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 the 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 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 19. Effective Date. This ordinance shall be published in the official newspaper of the City, and shall take effect and be in full force five (5) days after the date of the publication. PASSED BY THE CITY COUNCIL OF THE CITY OF TUKWILA, WASHINGTON, at a Regular Meeting thereof this day of , 2019. 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: Attachments: Exhibit A — Form of Bond Exhibit B — Certificate of Authentication (substantial form) Exhibit C — Certificate (by City Clerk) W: Word Processing \Ordinances\UTGO Bonds -Public Safety Plan 6-18-19 VC:bjs Review and analysis by Barbara Saxton 32 Page 16 of 16 Exhibit A Form of Bond [DTC LANGUAGE] UNITED STATES OF AMERICA NO. STATE OF WASHINGTON CITY OF TUKWILA UNLIMITED TAX GENERAL OBLIGATION BOND, 20[ 1 INTEREST RATE: MATURITY DATE: CUSIP NO.: REGISTERED OWNER: PRINCIPAL AMOUNT: 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 1, 20 , and semiannually thereafter on the first days of each succeeding and Both 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. 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 , 2019 (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. A-1 UTGO 33 This bond is one of an authorized issue of bonds of like 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 to: (a) implement its Public Safety Plan, which includes replacing three fire stations, financing critical items such as fire trucks and other life/safety equipment as necessary, and constructing a Justice Center to hold the Tukwila Police Department and Municipal Court, as identified in Ordinance No. 2509 passed by the City Council on August 1, 2016 and approved by the qualified electors of the City at a special election held therein on November 8, 2016; and (b) to pay costs of issuance. The bonds of this issue are subject to redemption prior to their stated maturities as provided in the [Bond Purchase Contract/Certificate of Award]. The City has irrevocably covenanted with the owner of this bond that it will levy taxes annually 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. The pledge 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. 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. 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: Christy O'Flaherty, MMC, City Clerk CITY OF TUKWILA, WASHINGTON By Allan Ekberg, Mayor 34 A-2 UTGO Exhibit B The Bond Registrar's Certificate of Authentication on the Bonds shall be in substantially the following form: Date of Authentication: CERTIFICATE OF AUTHENTICATION This bond is one of the bonds described in the within -mentioned Bond Ordinance and is one of the Unlimited Tax General Obligation Bonds, 20 , of the City of Tukwila, Washington, dated , 2019. WASHINGTON STATE FISCAL AGENT, as Bond Registrar By B-1 UTGO 35 Exhibit C 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 2019 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 , 2019. CITY OF TUKWILA, WASHINGTON Christy O'Flaherty, MMC, City Clerk 36 C-1 UTGO AN ORDINANCE OF THE CITY COUNCIL OF THE CITY OF TUKWILA, WASHINGTON, AUTHORIZING THE ISSUANCE OF LIMITED TAX GENERAL OBLIGATION BONDS IN THE AGGREGATE PRINCIPAL AMOUNT OF NOT TO EXCEED $25,000,000 TO FINANCE COSTS RELATED TO THE CITY'S PUBLIC SAFETY PLAN AND PUBLIC WORKS 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, improve, develop and equip certain capital improvements to City facilities, including but not limited to public works facilities and facilities related to the City's Public Safety Plan (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, this Council wishes to delegate authority to the Finance Director, or his or her designee (the "Designated Representative"), for a limited time, to approve the method of sale and the interest rates, maturity dates, redemption terms and principal maturities for the bonds within the parameters set by this ordinance; and WHEREAS, the Bonds shall be sold by negotiated or competitive public sale as set forth herein; NOW, THEREFORE, THE CITY COUNCIL OF THE CITY OF TUKWILA, WASHINGTON, HEREBY ORDAINS AS FOLLOWS: W: Word Processing\Ordinances\LTGO Bonds-PSP and PW Shops Facility 6-17-19 VC:bjs Review and analysis by Barbara Saxton Page 1 of 16 37 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 Bonds (including persons holding 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 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 the Bonds, maintained pursuant to Section 149(a) of the Code. Bond Registrar means, initially, the fiscal agent of the State, for the purposes of registering and authenticating the Bonds, maintaining the Bond Register, effecting transfer of ownership of the Bonds and paying interest on and principal of the Bonds. Bonds mean the City's Limited Tax General Obligation Bonds, 20XX, or other such series designation as approved by the Designated Representative, authorized to be issued pursuant to the terms of this ordinance. Certificate of Award means the certificate, if any, for the purchase of any Bonds sold by competitive sale awarding the Bonds 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 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. City Clerk means the duly appointed and acting City Clerk of the City or the successor to the duties of that office. Closing means the date of delivery of the Bonds to the Underwriter. W: Word Processing\Ordinances\LTGO Bonds-PSP and PW Shops Facility 6-17-19 VC:bjs Review and analysis by Barbara Saxton 38 Page 2 of 16 Code means the Internal Revenue Code of 1986 as in effect on the date of issuance of the Bonds or (except as otherwise referenced herein) as it may be amended to apply to obligations issued on the date of issuance of the 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 the 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 Finance Director, or his or her designee. 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 the Bonds pursuant to Section 4 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. Federal Tax Certificate means the certificate executed by the Designated Representative setting forth the requirements of the Code for maintaining the tax exemption of interest on the 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 direct or indirect obligations of, or obligations the principal of and interest on which are unconditionally guaranteed by, the United States of America. Letter of Representations means the Blanket Issuer Letter of Representations given by the City to DTC, as amended from time to time. W: Word Processing \Ordinances\LTGO Bonds-PSP and PW Shops Facility 6-17-19 VC:bjs Review and analysis by Barbara Saxton Page 3 of 16 39 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 documents prepared and delivered in connection with the issuance of the 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. For so long as the Bonds are held in book -entry only form, DTC or its nominee shall be deemed to be the sole Registered Owner. 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 or Certificate of Award, if any, executed by the Designated Representative in connection with the sale of the 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 Bonds as determined to be necessary by the Designated Representative. State means the State of Washington. Underwriter means any underwriter, in the case of a negotiated sale, or initial purchaser, in the case of a competitive sale, the Bonds selected pursuant to Section 12. Section 2. Authorization of the Project. The Bonds are being issued to finance and/or reimburse the City for costs of acquiring, improving, developing and equipping certain capital improvements to City facilities, including but not limited to public works facilities and facilities related to the City's Public Safety Plan, as it may be amended from time to time (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. For the purpose of paying and/or reimbursing the City for costs of the Project and paying costs of issuance, the City shall issue and sell limited tax general obligation bonds in an aggregate principal amount not to exceed $25,000,000 (the "Bonds"). W: Word Processing\Ordinances\LTGO Bonds-PSP and PW Shops Facility 6-17-19 VC:bjs Review and analysis by Barbara Saxton Page 4 of 16 40 The Bonds shall be general obligations of the City and shall be designated "City of Tukwila, Washington, Limited Tax General Obligation Bonds, 20XX" with additional series designation or other such designation as determined to be necessary by the Designated Representative. The Bonds shall be dated as of the date of Closing; shall be fully registered as to both principal and interest; shall be in the denomination of $5,000 each, or any integral multiple thereof, within a 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 from their date payable on the dates and commencing as provided in the Sale Document; and shall mature on the dates and in the principal amounts set forth in the Sale Document, as approved and executed by the Designated Representative pursuant to Section 12 of this ordinance. Section 4. Registration, Exchange and Payments. (a) 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 state fiscal agencies. The City shall cause a bond register to be maintained by the Bond Registrar. So long as any Bonds remain outstanding, the Bond Registrar shall make all necessary provisions to permit the exchange or registration or transfer of 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 Bonds transferred or exchanged in accordance with the provisions of such 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 Bonds. (b) Registered Ownership. The City and the Bond Registrar, each in its discretion, may deem and treat the Registered Owner of each 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(g), but such Bond may be transferred as herein provided. All such payments made as described in Section 4(g) shall be valid and shall satisfy and discharge the liability of the City upon such Bond to the extent of the amount or amounts so paid. (c) DTC Acceptance/Letters of Representations. The 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 Bonds in respect of the accuracy of any records maintained by DTC (or any successor depository) or any DTC W: Word Processing \OrdinancesITGO Bonds-PSP and PW Shops Facility 6-17-19 VC:bjs Review and analysis by Barbara Saxton Page 5 of 16 41 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 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 any consent given or other action taken by DTC (or any successor depository) as the Registered Owner. For so long as any 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 Bonds. (d) Use of Depository. (1) The Bonds shall be registered initially in the name of "Cede & Co.", as nominee of DTC, with one Bond maturing on each of the maturity dates for the Bonds in a denomination corresponding to the total principal therein designated to mature on such date. Registered ownership of such Bonds, or any portions thereof, may not thereafter be transferred except: (A) 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; (B) to any substitute depository appointed by the Finance Director pursuant to subsection (2) below or such substitute depository's successor; or (C) to any person as provided in subsection (4) below. (2) 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. (3) In the case of any transfer pursuant to clause (A) or (B) of subsection (1) above, the Bond Registrar shall, upon receipt of all outstanding Bonds together with a written request on behalf of the Finance Director, issue a single new 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. (4) 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 Bonds that such owners be able to obtain physical Bond certificates, the ownership of such 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 Bonds as herein provided in any authorized denomination. Upon receipt by the Bond Registrar of all then outstanding Bonds together with a written request on behalf of the Finance Director to the Bond Registrar, new Bonds of such W: Word Processing\Ordinances\LTGO Bonds-PSP and PW Shops Facility 6-17-19 VC:bjs Review and analysis by Barbara Saxton Page 6 of 16 42 series shall be issued in the appropriate denominations and registered in the names of such persons as are requested in such written request. (e) Registration of Transfer of Ownership or Exchange; Change in Denominations. The transfer of any Bond may be registered and Bonds may be exchanged, but no transfer of any such Bond shall be valid unless it is surrendered to the Bond Registrar with the assignment form appearing on such 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 Bond and shall authenticate and deliver, without charge to the Registered Owner or transferee therefor, a new Bond (or Bonds at the option of the new Registered Owner) of the same 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 Bond, in exchange for such surrendered and cancelled Bond. Any Bond may be surrendered to the Bond Registrar and exchanged, without charge, for an equal aggregate principal amount of Bonds of the same 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 Bond during the 15 days preceding any principal payment or redemption date. (f) Bond Registrar's Ownership of Bonds. The Bond Registrar may become the Registered Owner of any 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 Bonds. (g) Place and Medium of Payment. Both principal of and interest on the Bonds shall be payable in lawful money of the United States of America. Interest on the Bonds shall be calculated on the basis of a year of 360 days and twelve 30-day months. For so long as all 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 Bonds are no longer held by a depository, interest on the 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 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 Bonds shall be payable upon presentation and surrender of such Bonds by the Registered Owners at the designated office of the Bond Registrar. If any 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 Bond until the Bond is paid. W: Word Processing \Ordinances\LTGO Bonds-PSP and PW Shops Facility 6-17-19 VC:bjs Review and analysis by Barbara Saxton Page 7 of 16 43 Section 5. Redemption Prior to Maturity and Purchase of Bonds. (a) Mandatory Redemption of Term Bonds and Optional Redemption. The Bonds shall be subject to mandatory redemption to the extent, if any, set forth in the Sale Document and as approved by the Designated Representative pursuant to Section 12. The Bonds shall be subject to optional redemption on the dates, at the prices and under the terms set forth in the Sale Document approved by the 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. For as long as the Bonds are held in book -entry only form, the selection of particular Bonds within a maturity to be redeemed shall be made in accordance with the operational arrangements then in effect at DTC. If the Bonds are no longer held by a depository, the selection of such Bonds to be 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 Bonds having the same maturity date, the particular Bonds or portions of Bonds of such 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 a Bond of a denomination greater than $5,000, the City and the Bond Registrar shall treat each Bond as representing such number of separate Bonds each of the denomination of $5,000 as is obtained by dividing the actual principal amount of such Bond by $5,000. In the event that only a portion of the principal sum of a Bond is redeemed, upon surrender of such 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, a Bond or Bonds of like maturity and interest rate in any of the denominations herein authorized. (d) Notice of Redemption. (1) Official Notice. For so long as the Bonds 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 Bonds are no longer held by a depository), notice of redemption shall be given in the manner hereinafter provided. Unless waived by any owner of 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 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. W: Word Processing \OrdinancesITGO Bonds-PSP and PW Shops Facility 6-17-19 VC:bjs Review and analysis by Barbara Saxton Page 8 of 16 44 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 Bonds are to be redeemed, the identification by series and maturity (and, in the case of partial redemption, the respective principal amounts) of the Bonds to be redeemed, (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 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 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 Bonds or portions of 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 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 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 Bonds or portions of 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 Bonds or portions of Bonds shall cease to bear interest. Upon surrender of such Bonds for redemption in accordance with said notice, such 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 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 Bonds being redeemed; (B) the date of issue of the Bonds as originally issued; (C) the rate of interest borne by each Bond being redeemed; (D) the series and maturity date of each W: Word Processing \Ordinances\LTGO Bonds-PSP and PIN Shops Facility 6-17-19 VC:bjs Review and analysis by Barbara Saxton Page 9 of 16 45 Bond being redeemed; and (E) any other descriptive information needed to identify accurately the 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 additional information as the City shall deem appropriate, but such mailings shall not be a condition precedent to the redemption of such 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 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. W: Word Processing \Ordinances\LTGO Bonds-PSP and PW Shops Facility 6-17-19 VC:bjs Review and analysis by Barbara Saxton 46 Page 10 of 16 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. A portion of the proceeds of the Bonds net of any Underwriter's discount and fees, 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 (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 the Bonds from the gross income of the owners of the 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. W: Word Processing \Ordinances \LTGO Bonds-PSP and PW Shops Facility 6-17-19 VC:bjs Review and analysis by Barbara Saxton Page 11 of 16 47 (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. (h) Compliance with Federal Tax Certificate. The City will comply with the provisions of the Federal Tax Certificate with respect to the 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. 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 W: Word Processing \OrdinancesITGO Bonds-PSP and PW Shops Facility 6-17-19 VC:bjs Review and analysis by Barbara Saxton 48 Page 12 of 16 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 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 the Designated Representative, for a limited time, the authority to determine the method of sale for the Bonds and to approve the final interest rates, maturity dates, redemption terms and principal maturities for the Bonds. (b) Negotiated Bond Sale. If the Designated Representative determines that the Bonds are to be sold by negotiated public sale, the Designated Representative shall solicit proposals from one or more qualified underwriting firms and 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. (c) Competitive Sale. If the Designated Representative determines that the Bonds are to be sold at a competitive public sale, the Designated Representative shall: (1) establish the date of the public sale; (2) establish the criteria by which the successful bidder will be determined; (3) request that a good faith deposit accompany each bid; (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. The 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. W: Word Processing \OrdinancesITGO Bonds-PSP and PW Shops Facility 6-17-19 VC:bjs Review and analysis by Barbara Saxton Page 13 of 16 49 (d) Sale Parameters. Subject to the terms and conditions set forth in this Section 12, the 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 the Bonds in the manner provided hereafter so long as: (1) the aggregate principal amount of the Bonds does not exceed $25,500,000; (2) the final maturity date for the Bonds is no later than 21 years from Closing; (3) the aggregate purchase price for the Bonds shall not be less than 100.5% of the aggregate stated principal amount of the Bonds, excluding any original issue discount; and (4) the true interest cost for the Bonds (in the aggregate) does not exceed 4.50%. Subject to the terms and conditions set forth in this section, the Designated Representative is hereby authorized to execute the appropriate Sale Document on behalf of the City. Following the execution of the Sale Document, the Designated Representative shall provide a report to the Council describing the final terms of the Bonds 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. If a Sale Document for the Bonds has not been executed within one year after the effective date of this ordinance, the authorization for the issuance of the Bonds shall be rescinded, and the Bonds shall not be issued nor their sale approved unless such Bonds are re -authorized by ordinance of the Council. The ordinance re- authorizing the issuance and sale of such Bonds may be in the form of a new ordinance repealing this ordinance in whole or in part or may be in the form of an amendatory ordinance approving a Sale Document or establishing terms and conditions for the authority delegated under this Section 12. (e) Delivery of Bonds; Documentation. Upon the passage and approval of this ordinance and execution of the Sale Document, the proper officials of the City, including the Designated Representative, the City Administrator, the Mayor and the City Clerk, are authorized and directed to undertake all action necessary for the prompt execution and delivery of the Bonds to the Underwriter 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 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 the Bonds as provided therein, if such insurance is determined by the Designated Representative to be in the best interest of the City. W: Word Processing \OrdinancesITGO Bonds-PSP and PW Shops Facility 6-17-19 VC:bjs Review and analysis by Barbara Saxton 50 Page 14 of 16 Section 13. Preliminary and Final Official Statements. The Designated Representative is hereby authorized to deem final the preliminary Official Statement relating to the Bonds for the purposes of the Rule. The 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 the Bonds and the distribution of the final Official Statement 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. The City covenants to execute and deliver at the time of Closing a Continuing Disclosure Certificate. The Designated Representative is hereby authorized to execute and deliver a Continuing Disclosure Certificate upon the issuance, delivery and sale of the Bonds with such terms and provisions as such officer shall deem appropriate and in the best interests of the City. Section 15. Lost, Stolen or Destroyed Bonds. In case any Bonds are lost, stolen or destroyed, the Bond Registrar may authenticate and deliver a new Bond or Bonds of like 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 the 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 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. W: Word Processing \Ordinances\LTGO Bonds-PSP and PW Shops Facility 6-17-19 VC:bjs Review and analysis by Barbara Saxton Page 15 of 16 51 Section 19. Effective Date. This ordinance shall be published in the official newspaper of the City, and shall take effect and be in full force five (5) days after the date of the publication. PASSED BY THE CITY COUNCIL OF THE CITY OF TUKWILA, WASHINGTON, at a Regular Meeting thereof this day of , 2019. 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: Attachments: Exhibit A — Form of Bond Exhibit B — Certificate of Authentication (substantial form) Exhibit C — Certificate (by City Clerk) W: Word Processing \Ordinances \LTGO Bonds-PSP and PW Shops Facility 6-17-19 VC:bjs Review and analysis by Barbara Saxton Page 16 of 16 52 Exhibit A Form of Bond [DTC LANGUAGE] UNITED STATES OF AMERICA NO. STATE OF WASHINGTON CITY OF TUKWILA LIMITED TAX GENERAL OBLIGATION BOND, 20[ 1 INTEREST RATE: cyo MATURITY DATE: REGISTERED OWNER: PRINCIPAL AMOUNT: CUSIP NO.: 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 1, 20 , and semiannually thereafter on the first days of each succeeding and . Both 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. 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 [ 1, 2019 (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. A-1 53 This bond is one of an authorized issue of bonds of like 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 to pay the cost of acquiring, improving, developing and equipping certain capital improvements to City facilities, including but not limited to public works facilities and facilities related to the City's Public Safety Plan, and to pay costs of issuance. The bonds of this issue are subject to redemption prior to their stated maturities as provided in the [Bond Purchase Contract/Certificate of Award]. 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 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. The pledge 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. 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. 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: Christy O'Flaherty, MMC, City Clerk CITY OF TUKWILA, WASHINGTON By Allan Ekberg, Mayor 54 A-2 Exhibit B The Bond Registrar's Certificate of Authentication on the Bonds shall be in substantially the following form: Date of Authentication: CERTIFICATE OF AUTHENTICATION This bond is one of the bonds described in the within -mentioned Bond Ordinance and is one of the Limited Tax General Obligation Bonds, 20 , of the City of Tukwila, Washington, dated , 2019. WASHINGTON STATE FISCAL AGENT, as Bond Registrar By B-1 55 Exhibit C 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 2019 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 , 2019. CITY OF TUKWILA, WASHINGTON Christy O'Flaherty, MMC, City Clerk 56 C-1 City of Tukwila, Washington it ance Committee Meeting I Upcoming UTGO & LTGO Financings une 24, 2019 . PFM Financial 1200 Fifth Avenue Advisors LLC Suite 1220 Seattle, WA 98101 Duncan Brown (206) 858-5367 Steven Amano (206) 858-5366 pfm Background Timing Considerations PFM Recommendation Unlimited Tax General Obligation Bonds Limited Tax General Obligation Bonds Timing: Key Milestones Appendix — Debt Capacity & Market Update 1 Background The City is considering the issuance of both Limited Tax General Obligation Bonds ("LTGO Bonds") and Unlimited Tax General Obligation Bonds ("UTGO Bonds") • Proceeds of the LTGO Bonds may be used to finance project costs related to the City's Public Safety Plan and Public Works Facilities • Proceeds of the UTGO Bonds may only be applied to the projects included in the Public Safety Plan The City's cash flow projections suggest that bond proceeds to finance the Public Safety Plan projects will be needed in the fourth quarter of 2019 The City expects it will need additional funds for the Public Works Facilities in the first quarter of 2020 PFM 2 Timing Considerations Key considerations regarding bond sale timing include: Cash flow needs — Q4 2019 for Public Safety Plan (LTGO or UTGO); Q1 2020 for Public Works Facilities (LTGO only) Source of repayment — UTGO Bonds are payable from a separate, excess property tax levy; LTGO Bonds are payable from general resources of the City Issuance cost savings — issuing the two series of Bonds at the same time (or close to the same time) allows for shared issuance costs, a single credit rating, and reduced staff time commitment Tax levy timing — UTGO Bonds' excess levy must be finalized prior to the year in which it is imposed, typically by late November or early December Cost of carry — Issuing either series of Bonds before proceeds are actually needed results in added "cost of carry" Interest rate risk — ng to issue either series of Bonds exposes the City to changes in interest rates 0 PFIVI 3 PFM Recommendation PFM recommends that the City target both UTGO and LTGO bond sales in October 2019. This will allow the City to: Meet its project cash flow needs Avoid duplicative bond issuance costs and minimize required staff time commitment Minimize interest rate risk Come October, the City could consider postponing the sale of its LTGO Bonds until later in 2019, if market conditions are stable. This would allow the City to reduce its cost of carry while still capturing the cost and time efficiencies associated with a combined transaction. ©PFM 4 Unlimited Tax General Obligation Bonds, 2019 • The City's original plan in 2016 assumed the authorized borrowing amount ($77,385,000) would be issued in smaller amounts, over a longer term • The current expectation is that the City will issue the remainder of the 2016 Authorization with the 2019 UTGO Bonds • The table to the right compares the levy rate projections at the time of the 2016 Bond issuance vs. current projections • Note: the City's UTGO Bonds are limited to a 20-year term (may not mature more than 20 years from the closing date) PFM 2016 — Levy Rate Year Estimates 2017 0.47 2019 — Updated Levy Rate Estimates 0.47* 2018 0.47 0.46* 2019 0.47 0.43 2020 0.47 0.54 2021 0.47 0.54 2022 0.55 0.64 2023 0.62 0.64 2024 - 2036 0.69 0.67 2037 0.70 0.43 2038 0.70 0.43 2039 0.70 2040 0.09 2041 0.09 2042 0.09 2043 0.09 *Actual Levy Rates 5 Unlimited Tax General Obligation Bonds, 2019 (continued) • The graph below details the estimated debt service requirements and levy rates following the issuance of the 2019 UTGO Bonds (and compared to the levy rate estimates made at the time of the 2016 UTGO Bonds) $8.0 $7.0 $6.0 $5.0 U) -2 $4.0 $3.0 $2.0 $1.0 $0.0 PFM 0) c7) 0 N C "cc.r cp. ('\1 N CO "cr LC) CO N- CO 0) 0 ;.—.) N CO Tr LO CO r-- CO 0) 0 N— N CO N N N N N N N N CO CO CO CO CO CO CO CO CO ,:t 'T •Cl" 'Cr 0000000000000000000000 NNNNNNNNNC\INNNNNNNNNNNN 2016 Bonds Debt Service 0.164. $0.80 $0.70 $0.60 $0.50 $0.40 $0.30 $0.20 $0.10 $0.00 2019 Bonds Debt Service —2016 Levy Projection ..2019 Levy Projection Assumes remainder of the 2016 Authorization is issued ($40,885,000), AA MMD as of 6/6/2019 plus 0.50% cushion, shared issuance costs with UTGO Bonds totaling $250,000, underwriters discount of $7 per $1,000 of par amount, 2.50% annual growth rate assumed for assessed valuation growth to calculate future levy rates CD 6 UTGO Bond Ordinance The City Council is being asked to adopt an ordinance that would authorize the issuance of Unlimited Tax General Obligation (UTGO) debt within the following parameters: • Par amount: Not -to -exceed $40.885 million (remainder of 2016 Authorization) • Final maturity: No later than 20 years from the Closing Date • True Interest Cost: Not -to -exceed 4.50°/0 • The authority granted to the Designated Representative shall expire one year after the effective date of the Bond Ordinance If authorized, proceeds of the 2019 UTGO Bonds would be used to finance costs related to the City's Public Safety Plan UTGO Bonds payable from an excess property tax levy upon all property in the City PFM 7 Limited Tax General Obligation Bonds, 2019 • The graph below reflects the estimated debt service requirements of non -voted debt issued to finance the Public Works Shops and Public Safety Plan projects following the issuance of the 2019 LTGO Bonds • The annual debt service requirement of the 2019 LTGO Bonds is estimated to be approximately $1.7 million(1) LTGO Debt Service Estimate $3.5 $3.0 $2.5 $2.0 $1.5 $1.0 $0.5 $0.0 Outstanding LTGO PW Shops/PSP Debt (2018 Bonds) 2019 Bonds Interest 2019 Bonds Principal (1) Assumes level debt service structure, project funding of $25 million, AA MMD as of 6/6/2019 plus 0.50% cushion, shared issuance costs with UTGO Bonds totaling $250,000, underwriters discount of $7 per $1,000 of par amount 8 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 $25 million • Final maturity: No later than 21 years from the Closing Date • True Interest Cost: Not -to -exceed 4.50% • The authority granted to the Designated Representative shall expire one year after the effective date of the Bond Ordinance If authorized, proceeds of the 2019 LTGO Bonds would be used to finance costs related to the City's Public Safety Plan and Public Works Facilities LTGO Bonds will be secured by the City's full faith and credit and non -voted property taxing authority PFM 9 Timing: Key Milestones 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 SMTWT 1 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 31 AUGUST SM T W T F 1 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 31 SEPTEMBER OCTOBER T W T F S 1 2 3 4 5 6 7 1 2 3 4 5 8 9 10 11 12 13 14 6 7 8 9 10 11 12 15 16 17 18 19 20 21 13 14 15 16 17 18 19 22 23 24 25 26 27 28 20 21 22 23 24 25 26 29 30 27 28 29 30 31 SMTWT F S Finance Committee Meeting — Consideration of Bond Ordinance (5:30 p.m.) Committee of the Whole — Consideration of Bond Ordinance (7:00 p.m.) City Council Meeting — Consideration of Bond Ordinance (7:00 p.m.) Bond Rating Agency Call Bond Sale Bond Closing — funds delivered 6/24 7/8 7/15 Week of 9/9 10/9 10/23 10 6) op 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 2018 Assessed Value for 2019 Tax Year Non -Voted Debt Capacity (1.5% of AV) Less: Outstanding Non -Voted Debt Less: LTGO 2019 Bonds (Estimated) $6,685,919,176 100,288,788 (49,251,753) (25,000,000) Remaining Non -Voted Debt Capacity eneral Obligation Debt Capacity for General Municipal Purposes 2018 Assessed Value for 2019 Tax Year Total Debt Capacity (2.5% of AV) Less: Outstanding Voted Debt Less: Outstanding Non -Voted Debt Less: LTGO 2019 Bonds (Estimated) Less: UTGO 2019 Bonds (Estimated) Remaining Total Debt Capacity for General Municipal Purposes 26,037,035 $6,685,919,176 167,147,979 (30,635,000) (49,251,753) (25,000,000) (40,885,000) 21,376,226 12 Recent AAA MMD Yield Curve Movement AAA MMD Yield Curve Movement Current (06/17/2019) Last Year (06/18/2018) Past Year Low (06/07/2019) 3.50% 3.00% 2.50% 2.00% 1.50% 1.00% 0.50% 0.00% eb-C .rd.0 rd-C r§ 'Zfr• ‘§- e§ '§ r§ r§ 12± '§ eik* .4:21.1.1.ker AZ 40 _AZ 4.(Z) ..ke) ..ke, Az Az Az _k0 _Aso :_ke) ;.ke (1/' (b- <0' co' crY NQs. P\N' h.rt; t\n)' NI)" NV N:"' P\c3' n9r N' /9: (1,n5 ri?` et) ftc,3 ri3) rfb Maturity A Since A Since 06/18/2018 06/07/2019 1-Year -0.16% 0.00% 2-Year -0.34% 0.00% 3-Year -0.48% 0.00% 4-Year -0.56% 0.00% 5-Year -0.64% 0.01% 6-Year -0.72% 0.02% 7-Year -0.78% 0.04% 8-Year -0.83% 0.05% 9-Year -0.83% 0.05% 10-Year -0.82% 0.05% 11-Year -0.80% 0.05% 12-Year -0.77% 0.05% 13-Year -0.75% 0.04% 14-Year -0.74% 0.04% 15-Year -0.74% 0.05% 16-Year -0.75% 0.05% 17-Year -0.75% 0.05% 18-Year -0.75% 0.05% 19-Year -0.73% 0.05% 20-Year -0.71% 0.05% 21-Year -0.69% 0.05% 22-Year -0.67% 0.05% 23-Year -0.65% 0.05% 24-Year -0.64% 0.05% 25-Year -0.64% 0.05% 26-Year -0.64% 0.05% 27-Year -0.64% 0.05% 28-Year -0.64% 0.05% 29-Year -0.64% 0.05% 30-Year -0.64% 0.05% Source: Thomson Reuters PFM 1 3 AAA MMD Position Since Inception AAA MMD Rate Position 81, inception to June 17, 201 14.00% 12.00% 10.00% 8.00% 6.00% 4.00% 2.00% 0.00% �c 0 Current isAverage MMD Range at 40 40 r summary cif Jun 7, 2019 vs. Historical {since Inception) MMD Rates Statistic June 17, 2019 Historical Average Spread to Average Minimum Maximum % of Time Lower 1-Year 1.31% 1.32% 1.33% 1.34% 1.36% 1.46% 1.66% 3.00% 3,32% 3.55% 3.75% 3.94% 4.28% 4.68% -1.69% -2.00% -2.22% -2.41% -2.58% -2.82% -3.02% 0.11% 0.25% 0.36% 0.44% 0.62% 0.89% 1.29% 9.65% 9.85% 10.05% 10.30% 10.65% 11.05% 11.50% 27.62% 24.58% 22.24% 19.05% 15.08% 6.57% 1.76% 2-Year 3-Year Source: Thomson Reuters 4-Year 5-Year 7-Year 10-Year 15-Year 20-Year 25-Year 30-Year 1.96% 2.16% 2.30% 2.35% 5.17% 5.43% 5.55% 5,59% -3.21% -3.27% -3.25% -3.24% 1.57% 1.80% 1.88% 1.93% 12.40% 12.70% 12.80% 12.90% 1.24% 0.98% 0.93% 0.93% 14 Municipal Market Supply & Demand • New issuance volume was down 21.88% year -over -year and down 0.15% year-to-date through May. Overall Municipal Market Volume (Supply) $40 Bn $35 Bn $30 Bn $25 Bn $20 Bn $15 Bn $10 Bn $5 Bn $0 Bn 6 6 soc (<0 • 2018 • 2019 oci\ \>- 4e,cc''' c"." co Municipal Fund Flows (Demand) $15 Bn $10 Bn $5 Bn $ Bn ($5) Bn ($10) Bn ($15) Bn ($20) Bn Source: Bond Buyer, Investment Company Institute CO CO CO CO CO CO N- I,- N- 1"-- N- N- CO CO CO CO CO CO CD 0) CY) 1 1 1 -.,,— >, 3 0_ > > C 1.... >, • ,,,, C n.— >`• g a) 0 ri CO (--= (1)U- 0 Of C'S 01 =, W 0 ..C.2, CO co g - up z 2 ' cn z --, 2 cn z 2 1 5 PFM Financial Advisors PLC 20 Fifth Avenue LiSUite 1220 I Seattle,- WA 98101 Duncan Brown, --Senior Managing Consultant krawn�fm.com seven Amsno, Senior Analyst 001858-5 88 I arr arnos©pfm.com A $10,000 13 0 $9,000 $8,000 $7,000 $6,000 $5,000 $4,000 $3,000 $2,000 $1,000 $0 City of Tukwila General Obligation Bond Debt Service 01> "4A 4, " -15) • SCORE • SC Parkway Extension/HHD mi 42nd & 53rd Sidewalk C Urban Renewal LOC Refunding `k, PSP - PW Shops R Interurban Ave S/BAR Bridge PW Shops Debt: 1/2 paid by general fund, 1/2 paid by utility funds ix Arterial Street, KC Bridge MK) Capital Loan New - PSP PW Shops • City Hall Annex, Tukwila Village C Urban Renewal Ness - PSP Justice Center, Ore Stations 76 COUNCIL AGENDA SYNoPsIs Initials MeetingDate Prepared by Mayor's review council review 07/08/19 DCS ITE NFORMATION ITEM No. 3.C. STAFF. SPONSOR: DEREK SPECK ORIGINAL AGENDA DATE: 7/8/19 AGI NDA IIITEM TITLE Economic Development Plan CommunityInvolvement Process CxrEGORY Discussion 7/8/19 E Motion Mfg Date Ei Resolution Mtg Date 0 Ordinance Mtg Date 0 Bid Award Altg Date 0 Public Hearing Mtg Date E Other Mtg Date Mtg Date SPONSOR Council VIMayor EHR EIDCD Finance Fire ETS E]Pe'R MPolice PW Court SPONSOR'S The Council is being asked to provide input and consensus on the community involvement SUMMARY process for creating an economic development plan for the City. REVIEWED BY Ej C.O.W. Mtg. Trans &Infrastructure DATE: 6/25/19 ri CDN Comm E Finance Comm. [1] Public Safety Comm. Ej Parks Comm. El Planning Comm, COMMITTEE CHAIR: QUINN Arts Comm. RECOMMENDATIONS: SPONSOR/ADMIN. COMMITTEE Mayor's Office Unanimous Approval; Forward to Committee of the Whole COST IMPACT / FUND SOURCE EXPENDITURE REQUIRED AMOUNT BUDGETED APPROPRIATION REQUIRED $8,000 $8,000 $0 Fund Source: GENERAL FUND Comments: We may receive a Port of Seattle grant o 12, oa MTG. DATE RECORD OF COUNCIL ACTION 7/8/19 MTG. DATE ATTACHMENTS 7/8/19 Informational Memorandum dated 6/19/19 77 78 City of Tukwila Allan Ekberg, Mayor TO: FROM: CC: INFOR ATIO AL E ORANDU Community Development and Neighborhoods Derek Speck, Economic Development Administrator Mayor Ekberg DATE: June 19, 2019 SUBJECT: Economic Development Plan Community Involvement Process ISSUE Staff is seeking Council input on the community involvement process for creating an economic development plan for the City. BACKGROUND The City of Tukwila's Comprehensive Plan includes a chapter ("element") on economic development. The main goal of the economic development element is to enhance the community's economic well-being and it includes policies and strategies to achieve that goal. One of the implementation strategies is to develop an economic development plan. The economic development plan will build on the economic development element by providing additional context, options, and guidance to staff and policymakers. DISCUSSION Our goal for the community involvement process is to provide an opportunity for anyone who would like to provide input to be able to do so. This includes residents, businesses, and property owners. One of the key concepts of our approach is to have an economic development plan page on the City's website. The page would be a central place for the public to learn about Tukwila's economy, understand the process, and provide input (via online survey). With the help of interns, staff has been developing considerable information related to Tukwila's economy and our approach will be to post this information on the website so that stakeholders can have a shared understanding of key aspects of our economy. Since it would take someone considerable time to digest all of the information, we will provide weekly "teaser emails to interested stakeholders to help them digest it in sections over a four or six -week period. In terms of gathering input, we intend to ask questions that are fairly simple and open ended so that it is easy for people to provide input. Staff would then summarize those results for public review. We would include surveys in the top four languages spoken by Tukwila residents (English, Spanish, Somali, and Vietnamese). In order to gather input from residents who do not track the City's website and social media or speak English, we would like to conduct a survey at a key location in the Tukwila International Boulevard neighborhood such as Saar's Supersaver grocery store. 79 INFORMATIONAL MEMO Page 2 In order to gather input from small businesses we may conduct a door-to-door survey in the Tukwila International Boulevard neighborhood or host a listening session in the neighborhood, such as at the Sullivan Center. Following is the intended schedule: Early July: Early July: Early July: July/August: July/August: July/August: July/August: July/August: July/August: September: October: November: Web page is up and running with background economic information Introductory email is sent to invite participation Announced via City website and social media Staff attends City boards and commission meetings to gather input Online survey available Staff survey of key businesses and property owners Community survey at a key location on Tukwila International Boulevard Small business input from businesses in Tukwila International Boulevard neighborhood* All business "summit" in the Southcenter District* Staff analyzes input and drafts recommendations City Council review City Council approval The times above are subject to change since we may need to adjust as we receive input through the process. Although there is no required time frame in which to complete the economic development plan, staff would like to complete it in 2019. *These steps will depend on available resources. FINANCIAL IMPACT No additional budget is requested at this time; however, as we receive community input, we may want to add additional steps in the community involvement process and may need additional budget. The 2019 Economic Development division budget includes $8,000 for developing the plan. The City has submitted a grant application to the Port of Seattle for an additional $12,800 to develop the plan. If we receive that grant, we may need to amend the budget to reflect the additional revenue and expenses. RECOMMENDATION The Council is being asked for input on the community involvement process described above and to consider this item at the July 8, 2019 Committee of the Whole meeting. ATTACHMENTS None W:12019 Info MemosIEcon Dev Plan Involvement.doc 80 COUNCIL AGENDA SYNOPSIS -------------IrziIial.; Meetio D zle Prepared by May evien' Ca,,acrl rc:niez 07/08/ .9 HK 1... 07/15/19 HK ITEM INFORMATION ITEM No. 3.D. S`rr\ ' ' SPONSOR: HARI PONNEKANTI ORIGIN \I, AGI:ND \. a\ I'I.: 07/08/19 AGENDA ITEMITITLE Solid Waste (Commercial Only) Ordinance Amending Solid Waste Utility Tax Rate and Recycling Surcharge on 7/08/19 E Motion Mt5 Date ❑ Resolution Mtg Dale ❑ Bid: i;nard ❑ Public•: -loaring Date ❑ Other 1L1t5 Dale C. '1'I:GORY ►1 Disew ►1 Ordinance Mtg Date AJ/g Date 07/15/19 SPONSOR ❑Council Clllayor CL-CR ❑DCD ❑Finn'e ❑:Fire ❑TV ❑Pc K CI'olie 0PIt% ❑Court SPONtioR'S Council is being asked to approve two items; 1) Approve an Ordinance amending TMC 3.51 SLTM\I, R1' that establishes the Solid Waste Utility Tax to 11%, effective 11/1/19, and thereby to 16%0 efffective 07/01/20 and, 2) Approve a Letter of Understanding with Waste Management of Washington, Inc for additional services and a 5%o Recyclable Cost surcharge. Both items will only impact commercial customers for solid waste collection throughout the City. REVIEWED BY ® C.O.W. Mtg. ❑ CDN Comm ❑ Arts Comm. 21/ 19 & 06// 18/ 19 ❑ Finance ❑ Parks Comm. ❑ Public Safety Comm. Comm. ❑ Planning Comm. CHAIR: ZAK IDAN /1 Trans &Infrastructure DATE: 05/ COMMI EPEE RECOMMENDATIONS: SPONSOR/AI)NIIN. COMM Public Works Department ITT I? Unanimous Approval; Forward to Committee of the Whole COST IMPACT / FUND SOURCE EXPENDTT'URE REQUIRED AMOUNT BUDGETED APPROPRIATION REQUIRED $0 $0 $0 Fund Source: Comments: MTG. DATE RECORD OF COUNCIL ACTION 07/08/19 07/ 15/ 19 MTG. DATE ATTACHMENTS 07/08/19 Informational Memorandum dated 06/14/19 Draft Ordinance - Revised after 06/24/19 Trans & Infrastructure Cmte recommendations Draft Letter of Understanding Solid Waste Rate Comparison Tables Draft Additional Garbage Collection Locations Minutes from the Transportation and Infrastructure Committee Meeting of 6/18/19 07/15/19 81 82 10,0;44, Public Works Department - Henry HasDirector I F TI L 0 Allan Ekberg, Mayor TO: Transportation and Infrastructure Committee FROM: Henry Hash, Public Works Director BY: Hari Ponnekanti, City Engineer CC: Mayor Allan Ekberg DATE: June 14, 2019 SUBJECT: Solid Waste (Commercial Only) Ordinance Amending Solid Waste Utility Tax Rate and Recycling Surcharge ISSUE There are two separate but related issues: (1) Approve an ordinance to adjust the Solid Waste Utility Tax by 10% (in two increments) and amending TMC 3.51; and (2) Approve a Letter of Understanding with Waste Management of Washington, LLC (WM) for additional services and a 5% Recyclable Cost surcharge. Both issues would only impact commercial users. BACKGROUND — Issue 1: Utility Tax Many causes of asphalt damage exist, leading to roadways needing repair and replacement. Specifically, heavy solid waste vehicles can cause significant damage to road surface and shorten the life of pavement. The expenses to operate and maintain the City's road infrastructure have increased each year. BACKGROUND — Issue 2: Recycling Costs Waste Management (WM) recently made a presentation to the Transportation and Infrastructure Committee about the changes in the global recycling market and the increased costs. In order to offset the additional costs associated with recycling, WM has requested an increase to the recycling rates. DISCUSSION — Issue 1: Utility Tax An existing Solid Waste Utility Tax provides a revenue source to the City's general fund which can be used to fund roadway and roadway related projects. Adjusting the Solid Waste Utility tax is proposed to provide additional revenue to the City where the increased percentage can be used for road maintenance and road related projects. The current solid waste utility tax rate is 6% and it has not been adjusted since 2009. The increase in the solid waste utility tax would be implemented in two increments with the first increase from 6% to 11% effective beginning November 1, 2019 and the second increase from 11% to 16% effective July 1, 2020. DISCUSSION — Issue 2: Recycling Costs Staff recommends that the City approve the 5% Commercial Recyclable Cost surcharge to offset WM's costs associated with the weakening recycling market. This recyclable surcharge is only approved for a period of two -years, from November 1, 2019 through October 31, 2021, however WM may request to extend the surcharge by providing justification of the need to the City. Any request must be made no later than 90 days prior to the end of the two-year surcharge period and must be approved by both parties. WM will now pick up twice weekly, an additional 20 City -owned garbage containers at locations chosen by the City (see attached location list). FINANCIAL IMPACT The proposed utility tax and the recycling surcharge only apply to commercial users. With the proposed increases, the solid waste and recycling rates remain below Tukwila's neighboring cities. The following two tables illustrate the impacts of the two proposed increases and compare the proposed rate for Tukwila 83 IIPWStore1PW Common$1PW Eng \OTHER\ Hari PonnekantilInfoMernoTIC0618-HRdocx Infoimational Memo Page 2 Breakdown of Proposed Monthly Increases Size Current Tukwila Rate Existing 6')/0 Utility tax 5% Recycling Surcharge Effective Nov, 2019 Rate Increase 5% Utility Tax Effective Nov, 2019 Rate Increase 5% Utility Tax Effective July, 2020 Total Rate Including increase in utility tax and proposed surcharge 1- yard $70.80 $4.25 $3.54 $3.54 $3.54 $85.66 1.5- yard $99.06 $5.94 $4.95 $4.95 $4.95 $119.86 2- yard $122.20 $7.33 $6.11 $6.11 $6.11 $134.20 3- yard $175.14 $10.51 $8.76 $8.76 $8.76 $211.92 4-yard $228.33 $13.70 $11.42 $11.42 $11.42 $276.28 6- yard $323.89 $19.98 $16.19 $16.19 $16.19 $391.91 8- yard $424.54 $25.47 $21.23 $21.23 $21.23 $513.69 Comparison of Monthly Recycling Rate Charges by Jurisdiction Size Current Tukwila Proposed Tukwila SeaTac Newcastle Burien Des Moines 1-yard $70.80 $85.66 $109.06 $123.73 $94.63 $94.15 1.5-yard $99.06 $119.86 $146.74 $169.99 $137.03 $137.09 2-yard $122.20 $134.20 $188.78 $213.87 $176.14 $177.27 3-yard $175.14 $211.92 $270.11 $314.37 $254.39 $257.65 4 Yard $228.33 $276.28 $351.59 $385.75 $312.91 $332.53 6 Yard $323.89 $391.91 $502.40 $533.30 $449.68 $482.27 8 Yard $424.54 $513.69 $659.41 $669.97 $573.31 $620.99 RECOMMENDATION (1) Staff recommends Council approve the ordinance establishing the Solid Waste Utility Tax at 11%, effective November 1, 2019, and thereby to 16% effective July 1, 2020 and to consider this item at the July 8, 2019 Committee of the Whole and the subsequent July 15, 2019 Regular Meeting. (2) Staff recommends approving a 5% Recycling Rate Surcharge, effective November 1, 2019 for two years, and to consider this item at the July 8, 2019 Committee of the Whole and the subsequent July 15, 2019 Regular Meeting. ATTACHMENTS • Draft Ordinance • Draft Letter of Understanding • Solid waste rate comparison tables • Draft additional garbage collection locations 84 \\PWStore\PW Common$WW Eng \ OTHER \Hari Ponnekanti\InfoMemoTIC0618-HP.docx NOTE: Strike-through/underline text shows changes made after the 5/28/19 Committee of the Whole meeting, and before (and after) the 6/18/19 Transportation and Infrastructure Committee meeting. AN ORDINANCE OF THE CITY COUNCIL OF THE CITY OF TUKWILA, WASHINGTON, AMENDING ORDINANCE NO. 2250 §1 (PART), TO INCREASE THE SOLID WASTE UTILITY TAX; PROVIDING FOR SEVERABILITY; AND ESTABLISHING AN EFFECTIVE DATE. WHEREAS, the City Council shall periodically reconsider the need for a Solid Waste Utility Tax given current economic conditions; and WHEREAS, the heavy vehicles used for solid waste collection impact City streets with significant wear and tear, thereby shortening the life span of roads and accelerating the need for costly maintenance and repair; and WHEREAS, the City has availed itself of all appropriate revenue sources currently authorized; and WHEREAS, the City's basic road maintenance service levels may suffer a reduction without a new source of revenue; and WHEREAS, an increase in the solid waste utility tax measured by gross income from non-residential customers is expected to generate additional revenue to help offset the on- going impact of heavy vehicle operations and maintain current road condition levels; and WHEREAS, the City Council has determined the public interest is best served by a 10`)/0 increase to the existing 6% solid solid waste utility tax, with the increased percentage amount to be designated for road maintenance and road related projects; and WI E E incrementally increasing the solid waste utility tax to 11% on November 1, 2019, and then to 16°/o on July 1, 2020, will allow customers time to adjust to the increases; NOW, THEREFORE, THE CITY COUNCIL OF THE CITY OF TUKWILA, WASHINGTON, HEREBY ORDAINS AS FOLLOWS: W: Legislative Development\Solid Waste Utility Tax increase strike -through 6-24-19 CK:bjs Review and analysis by Barbara Saxton Page 1 of 3 85 Section 1. TMC Section 3.51.020 Amended. Ordinance No. 2250 §1 (part), as codified at Tukwila Municipal Code (TMC) Chapter 3.51.020, "Use and Accountability of Tax Proceeds," is hereby amended to read as follows: 3.51.020 Use and Accountability of Tax Proceeds 1. All revenues collected pursuant to this chapter shall be deposited into the General Fund, and shall be used for the funding of City services or capital requirements as the City Council shall direct through its biennial budget process. a, The revenues shall be used as follows: (1) 6% shall remain in the General Fund and may be used for any City purpose. (2) The remaining revenues may remain in the General Fund, and will be dedicated to maintain and repair City streets 2. In addition to the automatic annual review of the Financial Planning Model, the City Council will review the need for rate or other changes as part of the biennial budget process. 3. The City Council shall periodically reconsider the need for a Solid Waste Utility Tax given current economic conditions. Section 2. TMC Section 3.51.040 Amended. Ordinance No. 2250 §1 (part), as codified at TMC Chapter 3.51.040, "Occupations Subject to Tax — Amount," is hereby amended to read as follows: 3.51.040 Occupations Subject to Tax — Amount A. There is levied upon, and shall be collected from a person because of certain business activities engaged in or carried on in the City of Tukwila, taxes in the amount to be determined by the application of rates given against gross income as follows: B. Upon a person engaged in or carrying on the business of providing solid waste collection service, a tax equal to 6% for the calendar year 2020 and beyond of the total gross income from such business from all customers in the City, except residential customers, during the period for which the tax is due. On November 1, 2019, said tax rate shall increase to 11%, and shall then increase to 16% effective July 1 2020 W: Legislative Development\Solid Waste Utility Tax increase strike -through 6-24-19 CK:bjs Review and analysis by Barbara Saxton Page 2 of 3 86 Section 3. TMC Section 3.51.050 Amended. Ordinance No. 2250 §1 (part), "Tax Year," as codified at TMC Chapter 3.51.050, is hereby amended to read as follows: 3.51.050 Tax Year The tax year for purposes of this -increase in the solid waste utility tax shall commence on January 1 and end on December 31 each year, except for the following tax periods which constitute separate tax periods: November 1, 2019 to June 30, 2020, and July 1, 2020 to December 31 2020.November 1 2019 and end December 31 2020 and Section 4. 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 5. 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 of constitutionality of the remaining portion of this ordinance or its application to any other person or situation. Section 6. 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, WASH NGTON, at a Regular Meeting thereof this day of , 2019. 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: W: Legislative Development\Solid Waste Utility Tax increase strike -through 6-24-19 CK:bjs Review and analysis by Barbara Saxton Page 3 of 3 87 88 Allan Ekberg, Mayor Public Works Department- Henry Hash, Director June 4, 2019 Mary Evans Area Director, Public Sector Solutions Pacific Northwest/BC Area Waste Management of Washington, Inc. 720 4th Avenue, Suite 400 Kirkland, WA 98033 RE: Additional Services and Recyclable Market Surcharge City of Tukwila Contract No. 12-027 Dear Ms. Evans, The purpose of this Letter of Understanding ("LOU") is to approve a recyclable market surcharge between the City of Tukwila ("City") and Waste Management of Washington, Inc. (" WM" ). City and WM agree to increase commercial rates by five percent (5%), effective November 1, 2019, to reflect increased costs in recyclable processing and marketing. This recyclable surcharge is only approved for a period of two -years, from November 1, 2019 through October 31, 2021, however WM may request to extend the surcharge by providing justification of the need to the City. Any request must be made no later than 90 days prior to the end of the two-year surcharge period and must be approved by both parties. Furthermore, WM agrees to commence twice weekly collection and disposal service for twenty (20) city -owned garbage containers at locations chosen by the City staff for the duration of the Agreement. The City reserves the right to change the locations of these garbage containers. By signing below, the City and Waste Management acknowledge its approval and acceptance of the terms of this LOU and acknowledges that this LOU: (a) creates a legally binding obligation upon the parties, (b) shall be governed and constructed in accordance with the laws of the State of Washington regardless of any conflict of law provisions, (c) sets forth the entire agreement between the City and WM with respect to the subject matter hereof and supersedes all prior negotiations, representations, understandings and agreements with respect to the subject matter hereof, and (d) may be executed in two or more counterparts, each of which shall be deemed an original and all of which together shall constitute one and the same instrument. 6300 Building o 6300 Southcenter Boulevard Suite 100 © Tukwila, WA 98188 0 206-433-0179 Tukwila City Hall • 6200 Southcenter Boulevard • Tukwila, WA 9 188 • 206-433-1800 • Website: TukwilaWA.gov 89 Waste Management Letter of Understanding Page 2 Acknowledged and agreed upon by: CITY OF TUKWILA WASTE MANAGEMENT OF WASHINGTON, INC. By: By: Its: Its: VVVVV Eng1PROJECTS \Solid Waste\WM LOU Recycling 060419.Docx 6300 Building o 6300 Southcenter Boulevard Suite 100 0 Tukwila, WA 98188 0 206-433-0179 Tukwila City Hall • 6200 Southcenter Boulevard • Tukwila, WA 98188 • 206-433-1800 • Website: TukwilaWA.gov 90 Tukwila (Current) fukwila (5% Surcharge + 1.6% Utility tax) SeaTac Newcastle ir Burien im Des Moines LID II) CC) C) JC Cr) Lc, 0 • CO 0, Li) LO- 1 YARD to CY:1 CO tO 0 tO in -VD, CO *O. OS CO OD CD 0 CO rr) TiC 1.5 YARD it 2 YARD U- PS 3 YARD LC; CC), U1 r,1 4 YARD Ui PU 0- 11 ciT 6 YARD CO if) CC r-, CO p 'CC U Cr, a- CC) LC.) CO 8 YARD sit co N �6OOO S50OO ,l8,95 S17'41==. 10eai $31.49 Z0ga|. $Z4.19 $38.44 358aL 648aL $40.28 pagem $59.72 46.7 94 Trash Pick-up Locations 1. Tukwila Intl Blvd — Northbound, (2) cans at the bus stop by KFC and Taco Bell. 2. Tukwila Intl Blvd — Northbound, (2) cans at the bus stop north of S. 148th Street at Pizza Hut. 3. Tukwila Intl Blvd — Northbound, (2) cans at the bus stop north of S. 144th Street by Car Wash. 4. Tukwila Intl Blvd — Northbound, (2) cans at the bus stop at S. 140th Street. 5. Tukwila Intl Blvd — Southbound, (2) cans at the bus stop south of S. 141st Street at the Casino. 6. Tukwila Intl Blvd — Southbound, (2) cans at the bus stop south of S. 144th Street at the Market. 7. Tukwila Intl Blvd — Southbound, (2) cans at the bus stop south of S. 148th Street at the Church. 8. Tukwila Intl Blvd — (2) cans at the NE & NW intersections with S. 144th Street. 9. S. 144th Street — Westbound, (1) can at the bus stop west of 37th Ave South at the Park. 10. S. 144th Street— Eastbound, (1) can at the bus stop east of 37th Ave South at the Market. 11. S. 144th Street — Westbound, (1) can in front of brick structure. 12. S. 144th Street — Eastbound, (1) can in front of brick structure. W. PW EngtOTHERICyndy Knighton\TIC Agenda Items\5-21-19\WM Solid Waste Utility Tax \Garbage Can Locations.doc 95 96 Tukwila iMap )!, 0,N,',4m401 97 98 ia iMap 37 42 AA A4244, W't 44444 ,1444r, 14, - 4,1z 4 A44,4 , 4 AMAgi,k4iAl., MAO' 1440.4 1 4404 99 100 C^ty f Tukwila CifvCouncil T[an5DOrtnt'oDB^|n6'a3hmrtU[eFo00'ttee TRANSPORTATION Q^INFRASTRUCTURE COMMITTEE Meeting Minutes June 18, 2019 - 5:30p.m. - Hazelnut Conference Room, CityHoll Coundin/ernbenz Zak |dan.Chair; Kate Krui|er,Thomas McLeod Staff: David Cline, Laurel Humphrey, Brandon Miles, Han Kirkland, Hari Ponnekanti'Henry Hash Guests, Meg Moorehead, King County Solid Waste Division; Thomas Mun, BE[U; Emily Newcomer, Waste Management; Mike[ Hansen, Sabey Corporation; Andrea Reey, Seattle SouthsideChamber ofCommerce CALLTOORDER: Chair Idan called the meeting to order at 5:30 p.m. |' PRESENTATIONS King County Solid Waste King County staff provided an overview of the Comprehensive Solid Waste Management Plan, which is pending approval ofcities representing atleast T5Y6ofthe population during the lZO'dayapproval period. The Plan outlines programs to prevent' recycle, and dispose of waste, and includes six major planning elements: existing solid waste system, forecasting & data, recycling, transfer &processing, disposal &iendMii management, and finance, Once the cities have acted the Plan will go to the Department of Ecology for final approval, expected this fall. Staff will present the Plan to the Committee atits next meeting. Committee members expressed interest intouring related facilities. U. 8US|NESSAG2ND& A. Ordinance: Amending Solid Waste Utility Tax Rate& Recycling Surcharge Staff returned with changes requested bvthe Committee Vfthe Whole. The proposed ordinance now includes a stepped increase over two years and clarity around revenues being dedicated to street maintenance and repair. Comments and questions are summarized as follows: Proposed new section 3.51. (2) [oundbnenlbor McLeod asked why the proposed new section states that remaining revenues "m8yremain iOtheGenero|FUnd."Staff replied thatitprovides accounting direction buttheintent about street repair is still captured. Staff offered to change the sentence to "The remaining revenues will bededicated tnmaintain and repair streets." [ounciimemberMru|ierasked staff to check with the Finance Director prior to the Committee of the VVhn|e, as she may have a good explanation for wanting itto remain asis. Cheir|dan mentioned that the "remaining revenues" should specifically mention the percentage so it is consistent with subsection 1. Proposed amended section 3.S2.02D(3) Cound|mernber KnuUer asked why the sentence was changed from "shall" to "may." Staff replied that the new language provides greater flexibility for the Council. The Committee rejected the 101 Transportation &/n0oatructureCommittee Minutes June I8,209 need for aSolid Waste Utility Tax given current economic conditimns,"Mr. Hansen and Ms. Reay addressed the Committee, and both mentioned appreciating the change to the stepped increase over two years. UNANIMOUS APPROVAL ASAMENDED. FORWARD TOJULy8,2O19 COMMITTEE OFTHE WHOLE. B. 8NSF|ntemnoda|Facility Access Project Update Committee members and staff discussed the status of the BNSF Intermoda[ Access Study, which was funded jointly by the City and BNSF in 2015 and resulted in a draft report issued in 2016 that identified the 48^h Avenue South Bridge as the preferred alternative. Because the construction estimates in the draft study are out of date, staff proposes to contract with David Evans and Associates tnupdate the numbers and finalize the report atanestimated cost ofupto$l5,O00.The construction estimates developed in 2017 were approximately $20 million but in today's numbers could beoshigh as$34million. [oVnci|memberKruUerasked for acopy ofthe original contract in order to review the scope and deliverabies, expressing surprise that the City never received a final report. Staff pointed out that it was during this same time period thatthe42"«Avenue South Bridge had been determined tobestructurally deficient and axaresult took greater priority regarding determination ofafunding strategy, Chair |danstated that hewould like the Committee 'tomake a recommendation to the full Council on the preferred location, and funding discussions could cnmpiater. He feels it would be good for staff and impacted stakeholders to have certainty around the location. Committee members agreed to forward the update to the Committee of the Whole with o recommendation that staff identify funding to complete the study in an amount not to exceed$I5'000. FORWARD TOJUNE24,2O19COMMITTEE C)FTHE WHOLE. U|, SCAT8d/RTC Councilmember Hougardy attends SCATBd and RTC and reports on both at City Council meetings. IV. MISCELLANEOUS 53 d Avenue South Street GomeCounci|mornbers have asked that staff address public confusion around street parking on 53rd Avenue South. Prior toconstruction there was room, but the new street design does not allow for on - street parkingevceptinoneupeciMcareanear5VuthI4OmStreet.CounciimemberMcLeodaskedifsi ns could be installed. Engineering standards do not indicate need for signage, nor does the Police Department need them for enforcement. Staff recommends allowing construction tocomplete and 1f on -street parking continuesto be a problem, signs will be considered. Counci[member Kruiler requested that the neighborhood be informed via flyers. Chair |danstated that hefeels people will quickly adapt and not much outreach isneeded. Hesuggested posting onTukwila Talk and other neighborhood news groups. Speed Cushions onS3mAvenupSouth The Council has received public comment inquiring why 53 d Avenue South only has two speed cushions, City staff installed them but used the design that KPG had created during construction. The Council was notified of the design last summer. Staff suggests allowing construction to complete and then collecting data to measure their effectiveness, Factors impacting the placement of speed cushions include mailboxes, driveways, and street geometry. Counci|nnenoberMcLeod asked ifthe same standards were used tVdetermine placement on South l6OmStreet. Counci|rnemberKru\\erasked where o speed cushion that was removed from South 16 oth Street was relocated. Staff will follow up. 102 COUNCIL AGENDA SYNOPSIS Initials -------- --- Meethig Date Prepared by Mayor's review Council review 07/08/19 3T ; 07/ 9 iT ITEM INFORMATION ITEM No. 3.E. S PA141 SPONSOR: JIM TOOLE ORIGIN \I, AGEND 1 D Al k: 07/08/19 ACMNDA TEM Tirim., Demolition and Asbestos Abatement Contracts 07/08/19 Motion Date 07/1.5/19 E Resolution Mi's Date Ej Ordinance Alit Date Ej Bid /board ill ty Dale E Public Hearing ilN Date E Other illts Date C \ i EGoRY 11 Discussion r4 Nits Date AN SPONSOR CouncC riMayor E HR DCD Finance Fire L 'ESP 1 Police v Court SPONSOR'S Ongoing code enforcement case since 2006. 15 permits have been issued, only one has SUMMARY been finaled. No activity to complete the building for years. Building has been deemed unfit, abandoned, and a public nuisance. The Council is being asked to consider and approve the two contracts to abate the asbestos and to demolish the building. REVII.Wkl) BY C.O.W. Mtg. ri Trans &Infrastructure DATE: 6/25/19 A CDN Comm El Finance Comm. El Public Safety Comm. E Parks Comm. Ei Planning Comm: COMMITTEE CHAIR: QUINN Arts Comm. RECOMMENDATIONS: SPONSOR/AI)MIN. COMMIPIEE Department of Community Development Unanimous Approval; Forward to Committee of he Whole COST IMPACT / FUND SOURCE EXPFNIATURk REQUIRED AMOUNT BUDGETED APPROPRIATION REQUIRED $65,000.00 $50,000 $ Fund Source: CE ABATEMENT Comments: MTG. DATE RECORD OF COUNCIL ACTION 7/8/19 7/15/19 MTG. DATE ATTACHMENTS 7/8/19 Info Memo dated 6/ 9/19 Draft Demolition Contract Draft Asbestos Abatement Contract Photographs of building to be demolished Location map 7/15/19 103 104 City of Tukwila Allan Ekberg, Mayor INFOR ATIONAL E ORANDU TO: Community Development and Neighborhood Committee FROM: Jack Pace, Director BY: Jim Toole, Code Enforcement Officer, DCD CC: Mayor Ekberg DATE: June 19, 2019 SUBJECT: Demolition and Asbestos Abatement Contracts ISSUE Demolition and asbestos abatement contract with PCI Democon and ENS -International Inc to resolve code enforcement issues on the property located at 15026 42nd Ave S BACKGROUND Code enforcement staff has been working with the owner of the property located at 15026 42nd Ave S to bring the property into compliance with Tukwila Municipal Code. However, the structure has been left in a dilapidated condition since 2002 and continues to be public nuisance and an abandoned property. On July 22, 2002, permit D02-212 was applied for by the owner to bring a single story house to the vacant lot. There was no payment made and no permit was issued. Since 2002, fifteen separate permits have been applied for at a total cost of $6,868.34. To date, only one of the fifteen permits has been finaled. Additionally, the owner requested and received eight extensions on several permits and was denied twice. There are no active permits on this property and there are no permit applications currently under review. Since the time the home was brought onto the property in 2006 and raised to build a new first floor, very little work has been completed. There is no active water, sewer, or electric service connected to this house as of June 14, 2019. Since 2015 and as recent as May 2019, the Tukwila Police have responded to complaints of people breaking into the house and squatting in the garage. People have been found in both the house and garage. DISCUSSION The City filed a nuisance abatement action in King County Superior Court in 2015 and obtained a default judgment which authorizes the City to enter upon the property to complete abatement. However, in 2016, the property owner had been responsive and worked cooperatively with Code Enforcement to remove overgrowth, rubbish and graffiti from the exterior of the property. In 2017, the progress slowed, and owner became 105 INFORMATIONAL MEMO Page 2 increasingly unresponsive. With Ms. Lee present, Code Enforcement, Building Official, and Fire Marshal conducted an inspection on April 12, 2018 and May 25, 2018 and found the structure in an unfit state (rafters cut in half, black mold, water damage, evidence of rodent infestation, squatters, etc.). The City moved forward with abatement proceedings and a hearing for complaint of unfit building was conducted on August 22, 2018. On September 4, 2018, Findings, Determination, and Order of the Improvement Officer for the City of Tukwila was issued and the property owner was ordered to secure the house, clean up the property, and submit an application for the demolition of the house and detached garage. On December 14, 2018, Ms. Lee quit claimed the property to her brother Ton Lee and Mary Armstrong. On January 10, 2019, the new owners were offered a Voluntary Correction Agreement (VCA) to address the code enforcement issues of unfit building. Current Status: Mary Armstrong submitted a signed and certified VCA on January 28, 2019. Wen Wu Lee signed for Ton Lee. Ms. Lee has not provided sufficient evidence to prove she has power of attorney for Ton Lee. The City Attorney is reviewing the new power of attorney for Ms. Lee to determine its validity. Given unsuccessful attempts at getting the VCA completed staff is requesting the City Council to approve contracts for demolition and asbestos abatement. Once the demolition is complete, the city shall lien the property for demolition and asbestos abatement expenses. The city shall receive payment at the time of future sale of the property or can foreclose on the lien. FINANCIAL IMPACT The amount budgeted is $50,000 and the expenditure required is $65,000 which shall be covered by DCD budget. RECOMMENDATION The Council is being asked to approve the two contracts and consider this item at the July 8, 2019 Committee of the Whole meeting and subsequent July 15, 2019 Regular Meeting. ATTACHMENTS Draft Demolition Contract Draft Asbestos Abatement Contract Photographs of buildings to be demolished Location map 106 7415 W. Bastian Rd., Woodinville, WA 98072 (425) 806-8404 phone (425) 806-7404 fax PROPOSAL To Customer: City of Tukwila Date: November 9, 2018 ATTN: Jim Toole Pages sent: 5 pages Job Name Location Structure Demolition Tukwila, WA. PCI Democon (hereinafter designated as "CONTRACTOR') proposes to furnish all materials and labor required for the application of the following (hereinafter designated as the 'Work") for the amount stated below: PCI Democon is providing our bid proposal for the structure demolition work as noted below. Please note the clarifications, qualifications and exclusions listed within this proposal. Demolition & Abatement Scope of Work: • Demolition of: Residential (2) story structure and a single -story garage including concrete foundations from existing site. All concrete slabs and foundations will be hauled off for recycling. • Drawings included in this proposal are: N/A • Addendums included in this proposal: N/A • Rough Grade finish • One (1) Mobilization. Additional mobilizations will be at a cost of $ 1,500.00 ea. • Demolition Proposal $ 49,477.00 08-04-03 PROFORMANCE r • /° 107 7415 W Bostian Rd., Woodinville, WA 98072 (425) 806-8404 phone (425) 806-7404 fax PROPOSAL Bid Qualifications: • Proposal based upon full unobstructed access to the work area until completion of PCI Democon's work. • Proposal based on PCI providing a comprehensive hazardous material survey of the project. • Proposal based on PCI rough grading and hydroseeding the site upon completion of demolition. • Proposal based on full use of the site for demolition and abatement activities. • Proposal based on PCI installing a silt fence on the east side of the property prior to demolition activities. • Proposal based on all demolition work to be within the building drip lines. • Proposal based on PCI clearing vegetation from the site once demolition is complete. • Proposal based on Proposal is based on a 5-6 day anticipated time frame for demolition. • Proposal is based on removing all concrete slab and foundations. • Proposal based on PCI rough grading site on demolition affected area. • Proposal based on there being no active utilities connected to any structure. • Proposal based on all hazardous materials to be removed by others prior to demolition. • Proposal based on all items to be salvaged for reuse shall be removed, by others, prior to commencement of demolition. • Proposal is based on normal business hours work. • Proposal based upon the specific scope of work listed -above. Any work not specifically listed in the, "Demolition Scope of Work" section of this proposal is the responsibility of others. • PCI Democon price is based on clarifications stated in this proposal and is conditional upon acceptance of mutually agreed -upon contract terms and conditions. Specific Exclusions: • Anything removed for reinstallation/re-location, removal or disposal of any hazardous materials, bracing or shoring of structure or items to remain, protection of items to remain, UST's, save or salvage items, premium time, building security, engineering drawings or fees, WSST, and any demolition not specifically shown or noted above. We would like to thank you for the opportunity to provide you with our proposal for this project. Proposal is guaranteed for 30 days. Respectfully Submitted, PCI Democon Sham vti S Shawn Smith Senior Estimator / Project Manager 08-04-03 dal PROFORMAHCE 2 108 Standard Terms and Conditions The Work: CONTRACTOR will supply and perform only that work specifically described herein (the "Work"), notwithstanding anything to the contrary contained in any bid documents presented by the Customer (the "Bid Documents"). It is specifically understood that the scope of work described herein shall supersede anything to the contrary provided in the Bid Documents. The asbestos removal Work shall be done one floor/area at a time. Any work to be done beyond that described herein shall require that a change order be executed. Customer shall notify CONTRACTOR if CONTRACTOR's work is to be stopped upon reaching any aggregate contract sum. Disposal: Notwithstanding anything herein or in any Bid Documents to the contrary, unless specifically stated otherwise, CONTRACTOR's Work shall not include the disposal or hauling of any asbestos or any asbestos containing material ("ACM") and title to such asbestos or ACM shall never be in the name of CONTRACTOR for any reason whatsoever. Schedule: CONTRACTOR will supply and perform the Work in accordance with the schedule (the "Schedule") described herein, or in the absence thereof, in accordance with the Bid Documents. CONTRACTOR's obligation hereunder is based upon the Schedule, both as to duration and sequence. In the event of any significant change in the Schedule, the contract price and the Schedule shall be equitably adjusted. In the event CONTRACTOR is delayed in its Work or is otherwise required to accelerate or resequence its Work for reasons other than the fault of CONTRACTOR or others under CONTRACTOR's control, then CONTRACTOR shall be entitled to additional compensation. Work Week: Customer will cooperate with CONTRACTOR in scheduling all Work, including disconnections, reconnections, interruption of services and utilities, and similar matters. In the event that Customer requires CONTRACTOR to work outside of normal daytime business hours, CONTRACTOR shall be entitled to additional compensation for such overtime. Guarantee: CONTRACTOR warrants and guarantees that its Work will be performed in compliance with all Federal, State and/or Local regulations and, at the time of Customer's acceptance inspection, will meet the specifications in the Contract Documents specifically relating to CONTRACTOR's Work. CONTRACTOR's obligation to repair or replace defective Work will expire one year from the completion of CONTRACTOR's Work, THIS WARRANTY IS IN LIEU OF ANY WARRANTIES PROVIDED IN THE BID DOCUMENTS AND IN LIEU OF ALL OTHER WARRANTIES, EXPRESS OR IMPLIED, INCLUDING ANY WARRANTIES OF MERCHANTABILITY OR FITNESS FOR A PARTICULAR PURPOSE. CONTRACTOR's liability is limited to the foregoing and it shall not in any case be liable for indirect, incidental, consequential or special damages of any kind. Insurance: CONTRACTOR shall supply workers compensation insurance in the form and amount required by law. CONTRACTOR shall supply general liability insurance, evidenced by its standard certificate of insurance, the price of which shall be included in the bid price unless otherwise specified herein. Additionally, CONTRACTOR shall obtain insurance specifically regarding liabilities resulting from asbestos abatement and removal activities, the cost of which shall be paid by the Customer unless otherwise specified herein. Protection of Work: CONTRACTOR shall be responsible for protecting the Work, or portions thereof, during the time the Work or portions of it are under its control; provided, however, that during such time, CONTRACTOR shall not be responsible for loss or damage caused by others; nor for any damages whatsoever while CONTRACTOR is not on site: Storage and Facilities: Customer will provide at its expense sufficient storage space to CONTRACTOR, which is fully protective of materials and equipment furnished for the Work at the place of performance of the Work. Customer will provide at its expense all light, heat, power and water which is required by CONTRACTOR for performance of the Work in the custom and practice of CONTRACTOR's trade. Taxes: Customer will pay for any and all taxes which are now or may be imposed on the Work by any Federal, State or Local taxing authority, law, ordinance, rule or regulation, unless otherwise specified herein. Bonds: Upon the request and at the expense of Customer, CONTRACTOR will furnish performance and payment bonds written by a corporate surety. The cost of any such bonds is not included in the bid price and shall be paid for by Customer: Indemnity: CONTRACTOR willindemnify and hold harmless Customer from all or such portion of such loss or damage to persons or property to the extent arising directly from CONTRACTOR's performance of the Work and which is caused solely by the willful misconduct or negligent acts of CONTRACTOR, its employees, or anyone under its control. Customer will indemnify and hold harmless CONTRACTOR from all or such portion of such loss or damage to persons or property to the extent arising directly from the willful misconduct or negligent acts of Customer, its employees or anyone under its control, including other contractors. Payments: For Work commenced and completed in any one calendar month, Customer will pay the full contract price in full upon the completion and acceptance of the Work: Otherwise, all progress payments for the value of the Work completed plus the amount of materials and equipment suitably stored on or off site, and final payment, shall be paid by the Customer to CONTRACTOR within thirty (30) days after the Customers receipt of CONTRACTOR's payment application therefor. Inspection and Acceptance: CONTRACTOR's Work with respect to asbestos removal on each floor/area shall be considered complete when CONTRACTOR notifies Customer that the Work on said floor/area has been completed in accordance with the specifications. The Customer's inspection of the Work shall take place within twenty-four (24) hours from receipt of notice from CONTRACTOR. Customers acknowledgement on the Acceptance Form shall constitute acceptance of the Work, Retention: For Work completed, ninety-five percent (95%) of the contract value of Work performed during each payment period will be payable as provided above up to a maximum retention of $50,000.00. In any event, the full balance of the contract price shall be payable in full upon completion and acceptance of the Work. Late Payments and Attorney's Fees: All sums not paid to CONTRACTOR when due, for whatever reason, shall bear an interest rate of one and one-half percent ;(1 %%) per month or the maximum legal rate permitted by law, whichever is less; and all costs of collection, including a reasonable attorney's fee, shall be paid by Customer: Changes: CONTRACTOR may only be ordered in writing by the Customer to make changes in the Work within the general scope of the Work consisting of additions, deletions, changes to the Schedule in duration or sequence, or other revisions, and the contract price and the Schedule shall be adjusted accordingly. Before starting the changed Work, CONTRACTOR will submit to the Customer a request for adjustment to the contract price and/or the Schedule.. CONTRACTOR will not commence any such changed or revised Work until receipt of a written change order from the Customer incorporating an adjustment to the contract price and/or Schedule in accordance with the above, In the event that CONTRACTOR encounters asbestos or ACM not included in the scope of Work, CONTRACTOR shall notify Customer, and removal of such ACM shall be by change order submitted by CONTRACTOR. In the event the Work is reduced by mutual agreement of Customer and CONTRACTOR, such agreement shall include an equitable increase in the Contract Sum due to CONTRACTOR for each floor/area on which the Work was performed. Customer's acknowledgement on the Acceptance Form shall constitute acceptance of CONTRACTOR's Work on such floor/area as meeting all requirements of the Agreement and the Contract Documents, The Contract Sum shall be increased for increases in the cost to CONTRACTOR of labor, materials and disposal. Force Majeure: CONTRACTOR shall not be responsible for delays or defaults where occasioned by any causes of any kind and extent beyond its control, including but not limited to: delays caused by the Owner, Customer, other subcontractors, architect and/or engineers, delays in transportation, shortages of raw materials, civil disorders, acts of the government, either in its sovereign or contractual capacity, labor difficulties or shortages, vendor allocations, freight embargoes, fires, floods, epidemics, quarantine Page Four restrictions, accidents, unusually severe weather, and acts of God. CONTRACTOR shall be entitled to an equitable adjustment in the Schedule and Contract Sum for such delays as described above, Customer Supplied Property: If the Work described herein requires Customer to supply materials, equipment or other property, then Customer warrants that such items shall be fit for the use for which they were intended. If such items do not conform, CONTRACTOR shall notify Customer within a reasonable time after CONTRACTOR's notice of the nonconformance and CONTRACTOR may request additional compensation by change order.. CONTRACTOR Supplied Property: Whenever the Customer, its employees, contractors and subcontractors (other than CONTRACTOR) use ladders, scaffolding, tools, vehicles, equipment or property of any kind, either owned or rented by CONTRACTOR, Customer shall indemnify and hold CONTRACTOR harmless from any and all claims, demands, damages, causes of action and suits of whatsoever nature and kind, arising out of or connected with the, use of such, except when caused by the sole active negligence of CONTRACTOR. Differing Site Conditions: If CONTRACTOR encounters conditions at the site differing materially from those indicated in the Bid Documents, or unknown physical conditions at the site of unusual nature differing materially from those ordinarily encountered by CONTRACTOR's trade, then CONTRACTOR shall promptly notify the Customer, stop its Work and await instructions from Customer. If such conditions cause a change in the cost of, or the time required for, performance of any portion of the Work, an equitable price adjustment shall be made and the Schedule modified accordingly. Notices: Any notice or written claim required to be submitted to the Customer on account of charges, extras, delays, acceleration, or otherwise, shall be furnished within a reasonable time period, and: in a manner to permit the Customer to satisfy the requirements of the Contract, notwithstanding any shorter time period otherwise provided therein. Liens: Nothing shall serve to void CONTRACTOR's right to file a lien or claim on its behalf in the event that any payment to CONTRACTOR is not timely made, Damages: Notwithstanding anything to the contrary in the Bid or Contract Documents, CONTRACTOR will in no event be liable for consequential, incidental or special damages of any kind for any reason whatsoever, whether arising in contract, tort or equity. This release includes but is not limited to claims of negligence. Preparation of Work Areas: The Customer shall prepare all Work areas so as to be acceptable for mobilization by CONTRACTOR. CONTRACTOR will not be called upon to start Work until sufficient areas are ready to ensure continued Work until job completion. CONTRACTOR shall not be responsible for damage to any property(a) which is to be replaced by Customer, or (b) which is damaged as a result of removal by CONTRACTOR prior to performance of the Work in order to perform Work despite CONTRACTOR exercising reasonable care to prevent damage. Termination and Suspension: If the Customer does not pay CONTRACTOR in a timely manner within seven (7) days from the time payment should be made as provided herein (except where such nonpayment is due to defective Work by CONTRACTOR or other material breach by CONTRACTOR), then CONTRACTOR may, without prejudice to any other remedy it may have, upon two (2) additional days' written notice to the Customer, stop its Work until payment of the amount owing has been received. In the event CONTRACTOR resumes its Work, the. Schedule shall be equitably adjusted, and CONTRACTOR shall incur no liability for such termination. Further, the contract price shall, by appropriate adjustment, be increased by the amount of CONTRACTOR's reasonable costs of shutdown, delay and startup. Further, if CONTRACTOR's Work is terminated or suspended for the convenience of the Customer or any other party, then CONTRACTOR shall be paid for all Work performed to-date,for equipment and materials already ordered, and for CONTRACTOR's costs of early termination, or in the case of suspension, CONTRACTOR's costs of shutdown, delay and startup. Notwithstanding anything herein to the contrary, CONTRACTOR shall not be liable for any damage while CONTRACTOR is not on site. Waiver: CONTRACTOR's waiver of any term herein shall not be construed as a waiver of such terms at any subsequent time. Recordkeeping: The Customer and CONTRACTOR shall both be required to maintain their records for at least a thirty (30) year period. This set of records shall include, but isnot limited to, acceptance documents, reports of hazard assessments, governmental notifications, medical surveillance, employer releases, disposal records, record of equipment use, bulk analysis and air monitoring results, plans and specifications, documents dealing with employee training, documents showing proper work techniques, work logs and diaries, warning signs and notices, types of encapsulents used, policies and procedures regarding safety equipment, decontamination procedures, interim and final inspection forms, emergency procedures, governmental inspection reports. Cooperation and Safety: CONTRACTOR shall have exclusive use of the workspace unless CONTRACTOR consents otherwise. CONTRACTOR's Work shall be performed in accordance with all applicable requirements of the Environmental Protection Agency, OSHA and other Federal, State and Local regulations relating to asbestos removal. Customer will cooperate with CONTRACTOR in all respects and take all necessary actions to enable CONTRACTOR to meet all such requirements with respect to the Work and the Project. Customer will cooperate with CONTRACTOR to assure that all areas where the Work is being performed are closed to access by unauthorized persons. Customer shall provide adequate security, including security personnel, to prevent unauthorized entry into CONTRACTOR's Work areas. The Customer will ensure that its employees, representatives, agents and tenants will abide by all safety procedures applied by CONTRACTOR on the Project. CONTRACTOR shall provide for its Work all safety signs, direction signs and warning signs for the Project in accordance with statutory requirements. All visitors to the Work areas shall be required to comply with CONTRACTOR's safety requirements: The Customer agrees that CONTRACTOR's insurer's representatives shall have the right to inspect CONTRACTOR's Work and Project without hindrance. The Customer agrees that it shall not perform any work or engage any other contractor or person to perform work within the abatement areas. CONTRACTOR shall not be required to continue the Work if a dispute arises out of, relates to, or results from an actual or alleged breach of safety requirements relating to asbestos or an inability on CONTRACTOR's part to comply with the safety requirements. Legal Effect:. Thisproposal offers to the Customer the terms and conditions upon which CONTRACTOR will perform the Work described herein and is made without regard to any of the provisions in the Bid Documents not expressly incorporated herein by reference or otherwise agreed to in writing signed by CONTRACTOR. Acceptance of the proposal is expressly limited to the terms stated herein. Additional or inconsistent terms of Customer's form or other documents are objected to and rejected andshall be deemed a material alteration thereof. Upon acceptance, this proposal will represent the entire agreement of the parties with regard to performance and payment for the Work. The proposal may be changed or withdrawn at any time prior to acceptance by notice to the Customer and will be deemed withdrawn if not accepted by the Customer within thirty (30) days from the date hereof. 03-04-03 109 7415 W. Bostian Rd., Woodinville, WA 98072 (425) 806-8404 phone DE roocON (425) 806-7404 fax PROPOSAL Contractual Clarifications • CONTRACTOR'S price is based on clarifications stated in this proposal (and is conditional upon acceptance of mutually agreed -upon contract terms and conditions). CONTRACTOR'S attached Standard Terms and Conditions, including CONTRACTOR's Standard Insurance, will apply to this project. • Protection of finished Work is excluded. CONTRACTOR'S Work must be approved and accepted on an area - by -area basis prior to removal of scaffolding and other equipment necessary to perform the Work. Once approval has been given and such equipment has been removed, and CONTRACTOR has left the area, CONTRACTOR cannot be responsible for damage to its Work. • Any damage to CONTRACTOR'S Work, which is not specifically caused by CONTRACTOR, will be considered damage by other trades. CONTRACTOR will be compensated for any repairs of damage by others via change order to the subcontract. • CONTRACTOR will be reimbursed for material received and stored in warehouse or pre -stocked at jobsite. • This proposal is per existing plans and specifications. All necessary design, architectural and engineering services, whether already performed or contemplated, shall be provided by others. This qualification overrides any condition requiring CONTRACTOR to furnish such services. Any assistance given to the Owner's or General Contractor's design professionals is furnished as an accommodation to the Owner and/or General Contractor, and such services do not make CONTRACTOR liable or responsible for any design Work. The Owner's design professionals shall approve any required shop drawings. Shop drawings submitted by CONTRACTOR do not constitute design, architectural or engineering services, and any shop drawings shall be deemed to be approved by the appropriate design professionals working for the Owner and/or General Contractor unless CONTRACTOR is promptly notified of needed modifications. Any contract awarded shall specify that design, architectural and engineering services are the responsibility of others • Notwithstanding anything in the Bid Documents to the contrary, CONTRACTOR'S scope of Work shall include only that Work specifically enumerated or described in this Proposal. Any additional work shall require a written change order. • CONTRACTOR shall not be responsible for damaged work in place arising from or relating to weather, environmental conditions, or other parties, except to the extent that such damage is covered by insurance (excluding deductibles). • As used in this Proposal, "costs" shall mean all costs associated with the performance of the Work, including but not limited to supervisory costs, engineering costs, and all other expenditures reasonable and necessary to complete the Work required under the terms of this Proposal, or any modification thereto. • To the extent this Proposal explicitly includes design or engineering responsibilities, CONTRACTOR'S design and engineering responsibilities relate solely to the building system to be designed or engineered by CONTRACTOR Design or engineering services associated with any other building system, including components connecting to systems designed or engineered by CONTR/ICTOR are specifically excluded. Commercial Cla rifications: • This proposal is based on a normal 40-hour week. No shift work or premium time has been included. • CONTRACTOR will provide equipment and other safety precautions for the protection of CONTRACTOR's workers only. • Temporal)) facilities such as light, power, heat, drinking water, and toilets are to be provided al locations convenient to the Work at no cost to CONTRACTOR. Such facilities will be adequate to ensure the proper installation of alt of CONTRACTOR'S Work under all environmental conditions. • This proposal is based On the assumption that the following facilities and services will be provided by others: Office Space, Telephone, Trash Clean-up, Trash Disposal, Potable Water, Weather Protected Material Storage, and Parking. 08-04-03 110 741sWoostianRd..Woodinville, ww98o72 (4u5)oono4o*phone (4u5)aon-7*ovfax Standard Insurance PROPOSAL The insurance inforce for PC|Dem000nprovides one ofthe most comprehensive coverages available. Evidence of our coverage will be provided on the standard ACORD Certificate of Insurance form. This standard, approved form is issued in compliance with requirements of the Insurance Service Office of the United States and is a recognized document used to provide evidence of insurance coverage in force. NO OTHER DOCUMENT IS APPROVED BY ISO FOR THIS PURPOSE, AND NO OTHER FORM WILL BE PROVIDED. PC|QEY0OC[)NStandard Coverage i Commercial General Liability (1{86occurrence form), including broad form extensions and contractual liability. 1000 General nagah* $2,00O.DOOProducts/Completed Operations Aggregate $ 1.VOO.00OPersonal/Advertising Injury $1.UOO.000Each Occurrence $ 5OO.00OFire Legal $ 5.00OMedical Expense $25.0OD.UO0Policy Aggregate Limit* Deductible of$'1.O0Uproperty damage per claim U. Business Automobile Liability (provides coverage for all autos owned, non -owned, leased or hired.) $2.0OO.00OCombined Single Limit |U. Workers Compensation (oteuhury) $1.UOU.00OEmployers Liability |\/ provides additional coverage over General Liability, Automobile Liability, and Employers Liability.) The Upper Tier Contractor, General Contractor and/or the Owner can be named anadditional insureds on our policy and can be named as primary, as long as the coverage is limited to the extent of PC[ OEM[)ODN's contractual obligations. ANY REQUIREMENTS ADDITIONAL TO THE ABOVE COVERAGE, INCLUDING BUT NOT LIMITED TO THE FOLLOWING, ARE HEREBY EXCLUDED FROM THIS PROPOSAL: ° Waivers orexclusions ofsubrogation. • Providing more than 30days prior notice ofcancellation. ° Any requirement for prior notice ofexpiration orchanges incoverage. ° Project -specific aggregate limits. * Any indemnification/hold harmless clauses which require that PC| DENYOCON hold other parties harmless for their own acts. PROFORMANCE 08-04-03 5 ill 15026 42nd Ave S, RFA11-158, Buildings to be demolished. 1v1.4QIN t,',,I.14tMor7"v44k.Aer';V •,*** Detached Garage AO+ nterior of detached gargae 112 King County iMap The information included on this map has been compiled by King County staff from a variety of sources and is subject to change withat notice. King County makes no representations orwa-ranties, express orinplied, as to accuracy, completeness, timeiness, or rights to the use of such irformatbn. This docunent is not intended br use as asurvey produl. King County shal not be Gable for any general, spedal, ind'rmt, incidental, or consequential damages including, but not limited to, lost revenues or lost profits resulting from the use or misuse cf the information contaned on this map. Any sale of this map or nformafon on this mapis prohbited except by writbn permission cf King County. Date: 6/18/2019 Notes: King County 114 EHS-International, EHS - INTERNATIONAL, INC. DATE: 05/07/19 FILENAME: 19-136 PROJECT: SFR & Garage Demo - 15026 42nd Ave S, Tukwila WA 98188 CONTACT: Jim Toole AUTHOR: Bill Schroeder/Derica Escamilla ASSIGNMENT: Pre -Demolition "Good Faith" Inspection and Report, Design and Pre -bid and CA �1"' (. ,�;,:; ; " „ , r, ;a !%°t,X��%':!i�,"���,R"��!, 4x4'�,,1,�4:rM.!,a0a\�Mw:,>?,��\+ Task Subtotals Task 01: Limited HAZMAT Survey Labor $4,048 Task 01R: Limited HAZMAT Survey Reimbursables $1,019 Task 01: Limited HAZMAT Survey Total $5,067 Task 02: Asbestos/HAZMAT Removal Design & Pre -bid Labor $3,523 Task 02R: Asbestos/HAZMAT Removal Design & Pre -bid Reimbursables $192 Task 02: Asbestos/HAZMAT Removal Design & Pre -bid Total $3,715 Task 03: Asbestos/HAZMAT Const. Admin Labor $3,613 Tank 03R: Asbestos/HAZMAT Const. Admin Reimbursables $190 Task 03: Asbestos/HAZMAT Coast. Admin Total $3,802 Total Pro osal $12,584 , } . ,2 „ 1, ?t1 \,. >�+. Time and Materials "not to exceed" fee proposal for professional hazardous materials consulting services for the City of Tukwila Department of Community Development (Client) at the Demolition Project located at 15026 42nd Ave S, Tukwila Washington 98188. Based on email correspondence wills Jim Toole and information on the King County Assessor's website, EHS- I nternational, Inc. (EHSI) understands that the Client plans to demolish the existing two-story residential building and single -story detached garage. EHSI proposes to provide a limited hazardous materials pre -demolition survey. The Limited Asbestos and Hazardous Materials Survey will identify, locate and quantify asbestos -containing materials (ACM), lead -containing paint (LCP), other lead -containing materials (LCM), arsenic -containing materials (As), and will quantify polychlorinated biphenyls (PCBs) fluorescent light ballasts and mercury (Hg)-containing light tubes and thermostats that will be impacted by the project. Additionally, this proposal includes asbestos -containing material (ACM) and hazardous materials (HAZMAT) design, pre -bid services for removal and disposal of impacted ACM and HAZMAT, and construction administrative services associated this project. This Limited Asbestos and Hazardous Materials Survey Report will meet the Washington State "Good Faith Survey" requirements as cited in Revised Code of Washington (RCW) 49.26.016 and implemented by L&I DOSH regulation, Washington Administrative Code (WAC) 296-62-07721, and Regulation IIi, Article 4 of the Puget Sound Clean Air Agency (PSCAA) requirements for a pre -demolition asbestos survey, and will comply with all applicable Federal, State and local regulations for a pre -demolition asbestos surveys. This proposal is based on projects of similar scope, but subject to revision with written approval for significant changes in scope. Task 01-Limited Hazardous Material Survey and Report 1. EHSI will complete a pre -renovation Limited Hazardous Materials Survey in preparation for the Demolition Project, EHSI will collect and submit for analysis up to eighty (80) bulk samples plus four (4) QA samples to an independent lab of suspect asbestos -containing material (ACM). Any additional samples that EHSI deems necessary to identify suspect material will only be submitted for analysis with the prior written approval of the Client and will be billed at the same time and materials rate as the proposed samples. a. EHSI will review any prior surveys, "as built" drawings, or renovation records made available by the Client. b. EHSi will incorporate all sample results from previous surveys and all "positive "results, but will reconfirm all negative results front previous surveys. c. EHSi will sample all potentially impacted "accessible" suspect ACM within the project scope. d. Limited destructive inspection is included in the scope of this proposal including: floors, ceilings and wall systems. EHSI will assume probable concealed or inaccessible materials to be ACM, tisat can't be sampled without disruptive destructive inspection (e.g., materials concealed in plumbing walls, above "hard lid" ceilings, under concrete floors, energized electrical or mechanical equipment or fire door cores). EHSI will sample the roof down to the roof deck only from the roof edge accessible from a ladder. EHSI will not attempt to walk on the sloped roof or take any samples that are not easily accessible from the roof edge for either roofing or roof insulation. e. EHSI will seal sample locations of suspect materials to prevent inadvertent exposure to ACM, but this proposal does not include the repairing or painting minor damage of suspect materials resulting from inspection. f EHSI will collect and submit to a separate, independent laboratory for analysis, up to four (4) QA samples for asbestos. All samples will be analyzed on a standard 5-day turn -around time (TAT). Expedited analysis at a higher cost is available, if requested. g. EHSI will use an x-ray fluorescence spectrometer (XRF) to determine the presence of lead in suspect lead containing paint and lead containing materials (LCP & LCM). In addition, EHSI will collect and submit for laboratory analysis three (3) QA samples of suspect LCP and/or LCM. h. EHSI will collect and submit for analysis up to one (1) samples of BMU or CMU mortar for analysis for arsenic (As), if needed. i. Inspect a representative number of each type of impacted fluorescent fixture for PCB -containing ballasts and will quantify mercury (Hg)-containing light tubes. EHSi will inspect for and quantify mercury -containing thermostats. 2. EHSI will prepare a detailed survey report identifying ACM/LCM/LCP/PCBs/Hg/As which will be impacted by the planned renovation activities. EHSI will also provide a cost estimate for the removal and disposal of ACM, Lead, As, PCBs and Hg-light tubes. A preliminary survey report will be provided within two (2) weeks of receipt of draft analytical reports, with a final report provided upon receipt of final, signed lab reports (approximately 2 weeks later). Task 02 - Asbestos/HAZMAT Removal Design and Pre -bid Services I. EHSI will prepare bid documents for the removal and disposal of Asbestos/HAZMAT expected to be impacted by the proposed renovation/addition project. a. EHSI will prepare specifications for the removal and disposal of ACM, LCP/LCM, As, PCB -containing fluorescent light ballasts, and Hg-containing fluorescent light tubes. b. EHSi will prepare HAZMAT removal drawings for inclusion in the project bid set. c. EHSI will prepare 95% review and 100% design drawings and bid set specifications, only. Any other designs submittals will only be prepared at the direction of the Client at the same time and materials rate as specified herein. d. EHSI will attend one pre -bid walk-through meeting and provide support to Client to respond to questions concerning hazardous materials removal. 1 of 5 115 EMS - INTERNATIONAL, INC. FILENAME: 19-136 PROJECT: SFR & Garage Demo - 15026 42nd Ave S, Tukwila WA 98188 CONTACT: Jim Toole AUTHOR: Bill Schroeder/Derica Escamilla DATE: 05/07/19 ASSIGNMENT: "Good Faith" Inspection and Report, Design and Pre -bid and CA Task 03— Asbestos/HAZMAT Const. Admin Services I. EHSI will review and respond to the Contractor's asbestos and hazardous materials work plans and pre -work submittals. 2. EHSI will attend one (I) pre -abatement construction meeting and provide support to the Client's Project Manager (PM) concerning asbestos and HAZMAT questions. 3. EHSI will provide three (3) days of industrial hygiene technician contractor monitoring site visits (approximately 4 hours per site visit) while the structure is being abated. Note: During these site visits, EHSI will monitor and report on Contractor compliance with contract and regulatory requirements and assess Contractor progress for response to pay requests. EHSI assumes there will be up to (5) days of abatement. 4. EHSI will accomplish independent "third party" final visual asbestos and HAZMAT removal completion inspections to confirm compliance with the contract documents following the Contractor's L&IDOSH final visual inspections and review of Contractor's pre -demo PCM clearances, but will not run independent air sampling. 5. EHSI will review and respond to RFla, CORs, and abatement contractor pay requests. 6. EHSI will review periodic and final submittals for the bid package and prepare a final close-out report for the HAZMAT work accomplished. By my signature below, I authorize the Survey, Report, Design, Pre -bid, and Construction Administration Services as described herein and grant EHSI approval to proceed, as noted. Jim Toole, City of Tukwila Date ***** PROPOSAL IS VALID FOR 90 DAYS FROM DATE OF SUBMITTAL ***** 116 3 of 5 EHS - INTERNATIONAL, INC. FILENAME: 19-136 PROJECT: SFR & Garage Demo - 15026 42nd Ave S, Tukwila WA 98188 CONTACT: Jim Toole AUTHOR: Bill Schroeder/Derica Esc ilia DATE: 05/07/19 ASSIGNMENT: Pre -Demolition "Good Faith' Inspection and Report, Design and Pre -bid and CA CODE \ TASK Technical Director/CIH Sr. PM AHERA Designer/ PM 1H Tech CAD Contract Word/lH Asst. Admin HAZMAT - 2 inspectors (including travel) Sample Preparation and Delivery HAZMAT Survey Report & QA/QC Sample Location Drawings ACM Quantities & Abatement Cost Est. Project Management Hour Totals: Billing Rate: $145,00 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0 1.0 0.0 0.5 1.0 0.0 0.0 1.0 0.0 0.5 1.0 0.0 2.5 2.5 $125.00 $95.00 16.0 0.5 2.0 0.0 0.0 0.0 18,5 $80,00 0.0 0.0 0.0 3.5 0.0 0,0 3.5 0.0 0.0 0.0 0.0 0.0 1.0 1.0 $80.00 $80.00 16.0 1.0 7.0 0.5 1.0 0.0 25.5 $65.00 Wage Subtotals: LABOR COSTS: DIRECT COSTS: Survey consumables. EQUIPMENT COSTS: XRF Analyzer 25' Scissor lift LABORATORY COSTS: (5-day TAT) Asbestos bulk sample analysis (excluding QA) Asbestos bulk sample analysis (QA) Asbestos (Point Count) Arsenic bulk sample analysis Lead sample analysts for QA TRANSPORTATION COSTS: Mileage (2 RTs, plus lab delivery) $0 $313 $238 $20 /day $1,480 TOTAL DIRECT LABOR: 1 days ODC SUBTOTAL ODC MARKUP $125 /day 1 day $300 /day 0 day(s) EQUIPMENT COST SUBTOTAL: $6 /sample $9 /sample $25 /sample $19 /sample $12 /sample $0.580 /mile 80 samples 4 samples 5 samples 1 samples 3 samples LAB SUBTOTAL LAB MARKUP 64 miles TRANSPORTATION COST SUBTOTAL: 10% $280 $80 $20 $20 $2 $125 $0 $125 $480 $36 $125 $19 $36 $696 20% $139.20 TOTAL REIMBURSABLES: TOTAL COSTS, THIS SHEET: ** PROPOSAL IS VALID FOR 90 DAYS FROM DATE OF SUBMITTAL ***** $37.12 $37 $4,048 $1,019 55,067 $1,658 4 of 5 117 m.0 ENS -International. EHS - INTERNATIONAL, INC. FILENAME: 19-136 PROJECT: SFR & Garage Demo - 15026 42nd Ave S, Tukwila WA 98188 CONTACT: Jim Toole AUTHOR: Bill Schroeder/Derica Escamilla DATE: 5/7/2019 ASSIGNMENT: Pre -Demolition "Good Faith" Inspection and Report, Design and Pre -bid and CA CODE \ TASK Technical Sr. PM AHERA ID Tech CAD Contract Word/IH Asst. Director/CIH Designer/PM Admits 0.0 0.0 0.0 3,0 2.0 2.0 6.0 0.0 4.0 1.0 2. 0 2.0 0.0 0.0 0.0 0.0 4.0 0.0 0.0 0.0 0.0 1.0 0.0 3.0 4.0 1.0 1.5 1.0 Design Site Check, Report and Drawing Updates HAZMAT Technical Specs (95% and Final) HA Drawings (95% and Final) Project Management Hour Totals: 2.5 7.0 11.0 4.0 4.0 1.0 8.0 Billing Rate: $145.00 $12.5.00 $95.00 $80.00 $80.00 S80.00 $65.00 Wage Subtotals: $363 $875 $1,045 $320 $320 $80 $520 LABOR COSTS: TOTAL DIRECT LABOR: 53,523 OTHER DIRECT COSTS: Courier/FedEx/postage: $25 /delivery 0 deliveries $0 Survey consumables: $20 /day I days $20 DIRECT COST SUBTOTAL: $20 Direct cost mark-up 10.00% $2 LABORATORY COSTS: (24 hr. TAT) Asbestos bulk sample analysis (excluding QA) Asbestos bulk sample analysis (QA) Laboratory cost mark-up $11 /sample 10 samples $110 $17 /sample 1 samples LABORATORY COST SUBTOTAL: 20.00% $17 $127 $25 TRANSPORTATION COSTS: Mileage 50.580 32 mi. $19 TRANSPORTATION COST SUBTOTAL: $19 TOTAL REIMBURSABLES: $192 TOTAL COSTS, THIS SHEET: $3,715 ***** PROPOSAL IS VALID FOR 90 DAYS FROM DATE OF SUBMITTAL ***** 5 of 5 118 EHS - INTERNATIONAL, INC. FILENAME: 19-136 PROJECT: SFR & Garage Demo- 15026 42nd Ave S, Tukwila WA 98188 CONTACT: Jim Toole AUTHOR: Bill Schroeder/Derica Escamilla DATE: 05/07/19 ASSIGNMENT: Pre -Demolition "Good Faith" Inspection and Report, Design and Pre -bid and CA tt CODE \ TASK Pre -work Submittal Review IH Tech On -site Contractor Monitor (3 visits, plus travel) ACM Sample Handling/Delivery Respond to RFIs, CORs & Pay Requests Pre -abatement Kickoff Mtg/Pre-con (XI )-Optional Project Management Review Periodic & Final Submittals Prepare ACM & HAZMAT Closeout Rpt Hour Totals: Billing Rate: Wage Subtotals: LABOR COSTS: OTHER DIRECT COSTS: Oversight Consumables Direct cost mark-up EQUIPMENT COSTS: Air Sample Kit (Sampling pumps and rotameter) Technical Sr. PM AHERA IH Tech CAD Contract Word/IH Asst. Director/CIH Designer/PM Admin 0.0 0.0 0.0 0.5 0.0 0.0 0.0 0.0 0.5 0.0 0.0 2.0 0.0 1.0 1.0 0.5 1.0 0.0 0.0 1.0 2.0 2.0 1.0 1.0 2.0 12.0 0.0 0.0 0.0 0.0 2.0 1.0 0.0 0.0 0,0 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0 1.0 0.0 0.0 3.0 0,0 2,0 0.0 0.0 0.0 2.0 4.0 0.5 5.0 8.0 17,0 0.0 1.0 11.0 $145.00 $125.00 $95.00 $80.00 $80.00 $80.00 $65.00 $73 $625 $760 $1,360 $0 $80 $715 TOTAL DIRECT LABOR: $3,613 $20 /set 2 sets $40 DIRECT COST SUBTOTAL: $40 10.00% $4 $75 /day 0 days $0 EQUIPMENT COST SUBTOTAL: $0 LABORATORY COSTS: Asbestos Air Sample analysis (PCM - 24br TAT) $20 /sample PLM Bulk Sample analysis (for discovery of concealed materials Laboratory cost mark-up 0 samples $0 (incl. req. blanks) $20 /sample 5 samples $100 LABORATORY COST SUBTOTAL: $100 20.00% $20 TRANSPORTATION COSTS: Mileage (2 visits) $0.580 44 mi. $26 TRANSPORTATION COST SUBTOTAL: $26 TOTAL REIMBURSABLES: $190 TOTAL COSTS, THIS SHEET: $3,802 ***** PROPOSAL IS VALID FOR 90 DAYS FROM DATE OF SUBMITTAL ***** 6 of 5 119 120 Upcoming Meetings and Events July 2019 8TH (MONDAY) 9TH (TUESDAY) 10TH (WEDNESDAY) 11TH (THURSDAY) 12TH (FRIDAY) 13TH (SATURDAY) , Civil Service Commission 500 PM Human ResourcesQ-emmittop Conference Room iiii- Finance Committee 530 PM Hazelnut Conference Room , City Council Committee of the Whole Meeting 7:00 PM Council Chambers Camnnty Neighborhoodc CANCELLED Si Tukwila International Boulevard Action Committee 7:00 PM Valley View Sewer District 3460 S 148th St p Park Commiss-ien CANCELLED $ . 40* %, ' Ail Music with Buff Moss and the Tukwila City Rockers, food and fun for those who work and live in the Southcenter District, 5:30 PM — 730 PM Bicentennial Park 6000 Christensen Rd p Equity & Social Justice Commission 515 PM Hazelnut Conference Room i,i. Community Oriented Policing Citizens Advisory Board 6:30 PM Duwamish Conference Room 15TH (MONDAY) 16TH (TUESDAY) 17TH (WEDNESDAY) 18TH (THURSDAY) 19TH (FRIDAY) 20TH (SATURDAY) p Public Safety Committee 530 PM Hazelnut Conference Room p. City Council Regular Meeting 7:00 PM Council Chambers . Transportation & Infrastructure Committee 530 PM Hazelnut Conference Room '''-,::..“'' TUKWILA 7:00 PM Valley View Sewer District 3460 S 148th St www actiontukwila org lt iL, HISTORICAL i,ti. SOCIET\ ,''' 7:00 PM Tukwila Heritage & Cultural Center 14475 59th Ave S 21'T (SUNDAY) Multi -talented performance group Black Stax honors the legacy of Black music and storytelling. 4:00 PM — 6:00 PM Community Center 12424 42'd Ave S For ages 1 to 18 years of age. Lunches will be available to the first 100 participants from t JUL 1 — AUG 24, MONDAY thru FRIDAY. Lunches will be served during nclement weather. COMMUNITY CENTER CASCADE VIEW COMMUNITY PARK 11:00 Atvi — 12:00 PM Lunch 12:00 PM —1:00 PM Lunch '''''' iii • i i i•it' • iti .ii ir, .:, 3:00 PM — 4:00 PM Snacks 3:00 PM — 3:30 Pm Snacks ., Arts Commission: 4th Wed., 6:00 PM, Tukwila Community Center. Contact Tracy Gallaway at 206-767-2305. Civil Service Commission: 2nd Mon., 5:00 PM, Human Resources Conference Room. Contact Michelle Godyn at 206-431-2187. Community Development and Neighborhoods Committee: 2nd & 4th Tues., 5:30 PM, Hazelnut Conference Room, Contact Laurel Humphrey at 206-433-8993. COPCAB (Community Oriented Policing Citizens Advisory Board): 2nd Thurs., 6:30 PM, Duwamish Conference Room. Contact Chns Partman at 206-431-2197. Equity & Social Justice Commission: 1st Thurs., 5:15 PM, Hazelnut Conference Room, Contact Niesha Fort -Brooks at 206-454-7564. Finance Committee: 2nd & 4th Mon., 5:30 PM, Hazelnut Conference Room. Contact Laurel Humphrey at 206-433-8993. (2A) 2019 15' Quarter sales tax and miscellaneous revenue report. (2B) Discussion on Fire Department budget. (2C) Intergovernmental purchasing agreement with the University of Washington for the Public Safety Plan. Library Advisory Board: 1st Tues., 5:30 PM, Community Center. Contact Stephanie Gardner at 206-767-2342. Park Commission: 2nd Wed., 530 PM, Community Center. Contact Robert Eaton at 206-767-2332. Planning Commission/Board of Architectural Review: 4th Thurs., 6:30 PM, Council Chambers at City Hall, Contact Wynetta Bivens at 206-431-3670. Public Safety Committee: 1st & 3rd Mon., 5:30 PM, Hazelnut Conference Room, Contact Laurel Humphrey at 206-433-8993. Transportation and Infrastructure Committee: 1st & 3rd Tues., 5:30 PM, Hazelnut Conference Room, Contact Laurel Humphrey at 206-433-8993. Tukwila Historical Society: 3rd Thurs., 7:00 PM, Tukwila Heritage & Cultural Center, 14475 59th Avenue S. Contact Louise Jones -Brown at 206-244-4478. Tukwila International Boulevard Action Committee: 2nd Tues., 7:00 PM, Valley View Sewer District. Contact Chief Bruce Linton at 206-433-1815, 121 Tentative Agenda Schedule MONTH MEETING 1 — MEETING 2 — C.OW. MEETING 3- REGULAR MEETING 4 — C.O.W. REGULAR July 1 8 See agenda packet cover sheet for this week's agenda: July 8, 2019 Committee of the Whole Meeting 15 Consent Agenda: 22 - Resolution declaring a 1997 Ford Expedition surplus; and authorizing its transfer of ownership to the Zone #3 Fire Explorers. - Authorize the Mayor to sign Amendment #1 to contract #18-179 for plan review and inspection services in an amount not to exceed of $80,000. Unfinished Business: - Ordinance amending Ordinance #2250 §1 (Part), to increase the Solid Waste Utility Tax, - Authorize the Mayor to sign a Letter of Understanding to approve a recyclable market surcharge for commercial accounts. - Authorize the Mayor to sign a contract for health care broker services with USI Insurance in the amount of $90,000 annually for 3 years. - Authorize the Mayor to sign a contract with EHSI Inc for asbestos abatement in the amount of $12,584. - Authorize the Mayor to sign a contract with PCI Democon for demolition services in the amount of $49,477. August 5 Appointments/ 12 19 26 Proclamations - Appointment to Arts Commission. - A proclamation recognizing August 6 as "National Night Out Against Crime". 122