HomeMy WebLinkAboutReg 2011-12-05 Item 5B - Ordinance - Refund Arterial Street Portion of Limited GO BOnds 2003COUNCIL AGENDA SYNOPSIS
Initials
ITEMNO.
Meelinq Date Prepared by I Mayor's review
Coulicil reuiex
11/28/11 PM J4w_ tc.
�U, B.
12/05/11 I PM 1ewl C I
ITEM INFORMATION
CAS NUNniI• ;R: I STAF1� SPONSOR: PEGGY MCCARTHY ORIC tN,1I.Ac,I.NDA DA'rI 11/28/11
A(,I.ND,1 I,n;AN4 Tn'i,I An ordinance authorizing refunding of the arterial street portion of the Limited
General Obligation Bonds 2003.
C.A 1'I?GOIZl' Discuxvion Motion Resolution Ordinance B&A -ward Public Hearing Other
dLtg Dale 11/28/11 I2tg Date 11tg Date rl41g Date 1215111 Mtg Date Mlg Date Mtg Date
SP( )NS( )It Council Mayor HR DCD .Finance Fire Ih P &R Police PII/
SP( )NSC BR'S The City issued $12,050,000 of limited tax general obligation bonds in 2003 to finance
SUN11 NII,1RY arterial street improvements and the construction of the golf course clubhouse. The
proposed refunding would defease the bonds outstanding at December 1, 2013, the
earliest call date. The savings from the refunding is estimated at $354,651.95 or 4.878 of
the refunded bonds with $281,442.17 realized from the arterial street fund portion of the
bond issue and $136,209.78 realized from the golf course portion of the bond issue.
COW IVItg. CA &P Cmte F &S Cmte Transportation Cmte
Utilities Cmte Arts Comm. Parks Comm. Planning Comm.
DATE: 09/20/11 COMMITTEE CHAIR: KATHY HOUGARDY
RECOMMENDATIONS:
SPONSOR /ADNaIN. Finance
CONIN11'171?tF, For Discussion; Forward to Committee of the Whole
COST IMPACT FUND SOURCE
EX1 Rr'()UIRED AMOUNTBUDGETED APPROPRIATION REQUIRED
$0 $0.00 $0
Fund Source:
Conznients:
MTG. DATE
09/26/11
11/28/11
MTG. DATE
09/26/11
11/28/11
12/05/11
RECORD OF COUNCIL ACTION
Return to a future Committee of the Whole Meeting
Forward to next Reqular Meeting
ATTACHMENTS
Informational Memorandum dated 09/14/11; revised 9 -21 -11
Draft Bond Refunding Ordinance
Sumary of Refunding Results Proposed Refunding of 2003A LTGO Bonds
Sumary of Refunding Results Proposed Refunding of 2003A LTGO Bonds Street only
Informational Memorandum dated 11/21/11
Ordinance in draft form
Minutes from the 9/20/11 F &S and 9/26/11 Committee of the Whole Meetings
Ordinance in final form
39
i
.m
i'Aty
Washington
Ordinance No.
AN ORDINANCE OF THE CITY COUNCIL OF THE CITY OF TUKWILA,
WASHINGTON, RELATING TO CONTRACTING INDEBTEDNESS;
PROVIDING FOR THE ISSUANCE, SALE AND DELIVERY OF NOT TO
EXCEED $5,000,000 PAR VALUE OF LIMITED TAX GENERAL
OBLIGATION REFUNDING BONDS, 2011, TO PROVIDE THE FUNDS
WITH WHICH TO CARRY OUT AN ADVANCE REFUNDING OF THE
CALLABLE PORTION OF THE SHARE OF THE CITY'S LIMITED TAX
GENERAL OBLIGATION BONDS, SERIES 2003A ALLOCATED TO
STREET IMPROVEMENTS, AND TO PAY THE ADMINISTRATIVE
COSTS OF THE REFUNDING AND THE COSTS OF ISSUANCE AND
SALE OF THE BONDS; PROVIDING FOR AND AUTHORIZING THE
PURCHASE OF CERTAIN OBLIGATIONS OUT OF THE PROCEEDS
OF THE SALE OF THE BONDS HEREIN AUTHORIZED AND FOR THE
USE AND APPLICATION OF THE MONEY DERIVED FROM THOSE
INVESTMENTS; AUTHORIZING THE EXECUTION OF AN
AGREEMENT WITH U.S. BANK NATIONAL ASSOCIATION, AS
REFUNDING TRUSTEE; PROVIDING FOR THE CALL, PAYMENT AND
REDEMPTION OF THE OUTSTANDING BONDS TO BE REFUNDED;
FIXING CERTAIN TERMS AND COVENANTS OF THE BONDS;
APPOINTING THE FINANCE DIRECTOR AS THE CITY'S
DESIGNATED REPRESENTATIVE TO APPROVE THE FINAL TERMS
OF THE SALE AND ISSUANCE OF THE BONDS; PROVIDING FOR
SEVERABILITY; ESTABLISHING AN EFFECTIVE DATE; AND
PROVIDING FOR RELATED MATTERS.
WHEREAS, pursuant to Ordinance No. 2027, the City heretofore issued the 2003A
Bonds (defined below), and by that ordinance reserved the right to redeem the 2003A
Bonds prior to their maturity on December 1, 2013, at a price of par plus accrued
interest to the date fixed for redemption and
WHEREAS, there are presently outstanding $8,400,000 par value of 2003A Bonds,
of which $4,605,000 mature on December 1 of each of the years 2014 through 2021,
inclusive, and 2023, bear various interest rates from 3.95% to 4.65 and are entirely
allocable to street improvements (the "Refunded Bonds and
W: Word Processing \Ordinances\2003 Bond Refunding 11 -22- 2011 -final
PM:mrh Page 1 of 19
41
WHEREAS, after due consideration, it appears to the City Council that the
Refunded Bonds may be refunded by the issuance and sale of the limited tax general
obligation refunding bonds authorized herein (the "Bonds so that a substantial savings
will be effected by the difference between the principal and interest cost over the life of
the Bonds and the principal and interest cost over the life of the Refunded Bonds but for
such refunding, which refunding will be effected by carrying out the Refunding Plan; and
WHEREAS, to effect that refunding in the manner that will be most advantageous to
the City it is found necessary and advisable that certain Acquired Obligations (defined
below) bearing interest and maturing at such time or times as necessary to accomplish
the refunding as aforesaid be purchased out of a portion of the proceeds of the Bonds
and other money of the City, if necessary; and
WHEREAS, the City Council deems it to be in the best interests of the City to issue
and sell the Bonds to pay the cost of carrying out the Refunding Plan (defined below);
WHEREAS, RCW 39.46.040(2) provides that an ordinance authorizing the
issuance of bonds may authorize an officer of the City to serve as the City's designated
representative and to accept, on behalf of the City, an offer to purchase those bonds so
long as the acceptance of such offer is consistent with the terms established by an
ordinance that establishes, or sets parameters with respect to, the following final terms:
the amount, date or dates, denominations, interest rate or rates (or mechanism for
determining interest rate or rates); payment dates, final maturity, redemption rights,
price, minimum savings for refunding bonds (if the refunding bonds are issued for
savings purposes), and any other terms and conditions deemed appropriate by the City
Council.
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 shall have
the following meanings:
A. "Acquired Obligations" means those United States Treasury Certificates of
Indebtedness, Notes, and Bonds -State and Local Government Series and other direct,
noncallable obligations of the United States of America purchased to accomplish the
refunding of the Refunded Bonds as authorized by this ordinance
B. "Authorized Denomination" means $5,000 or any integral multiple thereof
within a maturity.
C. "Beneficial Owner" means the owner of any beneficial interests in the Bonds.
D. "Bond Counsel" means Foster Pepper PLLC or any other nationally
recognized bond counsel firm then representing the City.
E. "Bond Fund" means the Limited Tax General Obligation Refunding Bond Fund,
2011, created by this ordinance for the payment of the Bonds.
W: Word Processing \Ordinances\2003 Bond Refunding 11 -22- 2011 -final
42 PM:mrh Page 2 of 19
F. "Bond Purchase Contract" means a purchase contract presented to the City by
the Underwriter offering to purchase the Bonds under the terms and conditions provided
therein.
G. "Bond Register" means the books or records maintained by the Bond Registrar
for the purpose of identifying ownership of the Bonds.
H. "Bond Registrar" means the Fiscal Agent.
I. "2003A Bonds" means the City's $9,850,000 par value Limited Tax General
Obligation Bonds, Series 2003A, issued for the purpose of providing funds with which to
reimburse itself for a part of the cost of transferring certain property between the City and
King County, to pay or reimburse itself for a part of the cost of making various arterial
street improvements, to redeem the City's outstanding Limited Tax General Obligation
Bond Anticipation Note, 2000 (Foster Golf Course), and to pay the costs of issuance of the
2003A Bonds.
J. "Bonds" means the not to exceed $5,000,000 par value Limited Tax General
Obligation Refunding Bonds, 2011, of the City issued pursuant to and for the purposes
provided in this ordinance.
K. "City" means the City of Tukwila, Washington, a municipal corporation duly
organized and existing under the laws of the State.
L. "City Council" means the governing body of the City, acting in its legislative
capacity.
M. "Closing Date" means the date on which the Bonds are delivered to the
Underwriter upon payment in full therefor.
N. "Code" means the United States Internal Revenue Code of 1986, as amended,
and applicable rules and regulations promulgated thereunder.
O. "Designated Representative" means the Finance Director, as appointed in
Section 4 of this ordinance to serve as the City's designated representative in
accordance with RCW 39.46.040(2) for purposes of accepting, on behalf of the City, an
offer to purchase the Bonds on terms consistent with this ordinance and the parameters
set forth herein.
P. "DTC" means The Depository Trust Company, New York, New York.
Q. "Final Terms" means the terms and conditions for the sale of the Bonds
including, but not limited to the amount, date or dates, denominations, interest rate or
rates (or mechanism for determining interest rate or rates), payment dates, final
maturity, redemption rights, price, and minimum savings for refunding bonds (if the
refunding bonds are issued for savings purposes).
R. "Finance Director" means the Finance Director of the City or the successor
officer, including without limitation any person acting in the capacity of the City's
Finance Director.
W: Word Processing \Ordinances\2003 Bond Refunding 11 -22- 2011 -final
PM:mrh Page 3 of 19
43
S. "Fiscal Agent" means the fiscal agent of the State, as the same may be
designated by the State from time to time.
T. "Letter of Representations" means the Blanket Issuer Letter of
Representations dated October 18, 1999, between the City and DTC, as it may be
amended from time to time.
U. "MSRB" means the Municipal Securities Rulemaking Board.
V. "Owners" means, without distinction, the Registered Owner(s) and the
Beneficial Owner(s).
W. "Refunded Bond Ordinance" means Ordinance No. 2027 passed by the City
Council on September 8, 2003 authorizing the issuance of the 2003A Bonds.
X. "Refunded Bonds" means the $4,605,000 street improvements portion of the
outstanding 2003A Bonds of the City maturing in the years 2014 through 2021,
inclusive, and in 2023, issued pursuant to the Refunded Bond Ordinance, the refunding
of which has been provided for by this ordinance.
Y. "Refunding Plan" means:
1. the placement of sufficient proceeds of the Bonds which, with other money
of the City, if necessary, will acquire the Acquired Obligations to be deposited, with
cash, if necessary, with the Refunding Trustee;
2. the application of the principal of and interest on the Acquired Obligations
(and any other cash balance) to the payment of interest on the Refunded Bonds when
due up to and including December 1, 2013, and the call, payment, and redemption of
the Refunded Bonds on December 1, 2013 at a price of par; and
3. the payment of the costs of issuing the Bonds and the costs of carrying out
the foregoing elements of the Refunding Plan.
Z. "Refunding Trust Agreement" means a refunding trust agreement between the
City and the Refunding Trustee dated as of the Closing Date, that provides for the
carrying out of the Refunding Plan.
AA. "Refunding Trustee" means U.S. Bank National Association of Seattle,
Washington, serving as refunding trustee or any successor thereto.
BB. "Registered Owner" means the person in whose name a Bond is registered on
the Bond Register. For so long as the City utilizes the book —entry system for the Bonds
under the Letter of Representations, Registered Owner shall mean DTC.
CC. "Registration Ordinance" means City Ordinance No. 1338 establishing a
system of registration for the City's bonds and other obligations.
DD. "Rule 15c2 -12" means Rule 15c2 -12 promulgated by the SEC under the
Securities Exchange Act of 1934, as amended.
EE. "SEC" means the United States Securities and Exchange Commission.
W: Word Processing \Ordinances\2003 Bond Refunding 11 -22- 2011 -final
44 PM:mrh Page 4 of 19
FF. "State" means the State of Washington.
GG. "Term Bonds" means those Bonds designated as such, with the maturity date
or dates identified in the maturing in the Bond Purchase Contract.
HH. "Undertaking" means the undertaking to provide continuing disclosure set forth
in 15 of this ordinance.
II. "Underwriter" means Seattle Northwest Securities Corporation of Seattle,
Washington.
Section 2. Debt Capacity. The assessed valuation of the taxable property within
the City as ascertained by the last preceding assessment for City purposes for the
calendar year 2011 is $4,775,732,512.
1. The City has outstanding general indebtedness as follows:
a. Limited tax general obligation bonds and leases outstanding in the
principal amount of $23,386,800 (excluding the Refunded Bonds), which is incurred
within the limit of up to 1 %z% of the value of the taxable property within the City
permitted for general municipal purposes.
b. No unlimited tax general obligation bonds for capital purposes only.
2. The amount of indebtedness authorized by this ordinance is an amount
not to exceed $5,000,000 and is issued within the limitation permitted for general
municipal purposes without a vote.
Section 3. Purpose and Authorization of Bonds. In order to achieve a cost
savings for the City, the City Council finds it to be in the best interest of the City to
authorize the issuance and sale of the Bonds for the purposes described below. The
City shall borrow money on the credit of the City and issue negotiable limited tax
general obligation refunding bonds evidencing that indebtedness in the amount of not to
exceed $5,000,000 to finance the cost of the Refunding Plan and to pay the costs of
issuance and sale of the Bonds.
Section 4. Description of Bonds; Appointment of Designated Representative.
The Finance Director is appointed as the City's Designated Representative and is
authorized to approve the Final Terms of the Bonds, within the following parameters:
A. Amount. The Bonds shall not exceed the aggregate principal amount of
$5,000,000. The principal amount of the Bonds (i) may exceed the principal amount of
the Refunded Bonds being refunded by an amount deemed reasonably required to
effect such refunding, or (ii) may be less than or the same as the principal amount of the
Refunded Bonds, so long as provision is duly and sufficiently made for the retirement or
redemption of those Refunded Bonds.
B. Date or Dates. The Bonds shall be dated as of the Closing Date, which date
may not be later than December 31, 2011.
W: Word Processing \Ordinances\2003 Bond Refunding 11 -22 -2011 -final
PM:mrh Page 5 of 19
45
C. Denominations, Designation, etc. The Bonds shall be issued in Authorized
Denominations and shall be numbered separately in the manner and bear any name
and additional designation as deemed necessary or appropriate by the Designated
Representative.
D. Interest Rate(s). The Bonds shall bear interest at fixed rates per annum
(computed on the basis of a 360 -day year of twelve 30 -day months) from their date or
from the most recent interest payment date for which interest has been paid or duly
provided for, whichever is later. One or more rates of interest may be fixed for the
Bonds, which rate or rates must be in multiples of 1 /8 or 1 /20 of 1 or both. The
"all -in" true interest cost to the City for the Bonds may not exceed 3.00
E. Payment Dates. Interest must be payable at fixed rates semiannually (on
each June 1 and December 1, or such other semiannual dates as are selected by the
Designated Representative), commencing on the next such semiannual date following
the issuance of the Bonds. Principal must be payable annually (on each December 1,
or such other annual date as is selected by the Designated Representative)
commencing no earlier than the next such annual date following the issuance of the
Bonds.
F. Final Maturity. The Bonds shall not extend over a longer period of time than
the Refunded Bonds.
G. Redemption Rights. The Bonds shall be subject to optional and mandatory
redemption provisions, including designation of Term Bonds, if any, as set forth in
Section 8.
H. Purchase Price. The purchase price for the Bonds may not be less than 95%
or more than 115% of the par value of the Bonds.
I. Minimum Savings for Refunding Bonds. The Bonds much achieve a
minimum net present value savings of 3.00% over the scheduled principal and interest
of the Refunded Bonds, giving consideration to the fixed maturities of the Bonds and the
Refunded Bonds, the costs of issuance of the Bonds, and the known earned income
from the investment of Bond proceeds in the Acquired Obligations, pending redemption
of the Refunded Bonds.
J. Other Terms and Conditions.
1. The Designated Representative may determine that it is in the City's best
interest to provide for bond insurance or other credit enhancement, and may accept, on
behalf of the City, such additional terms, conditions, and covenants as may be required
by the bond insurer, if consistent with the provisions of this ordinance.
2. The Designated Representative is also authorized to take such additional
action as may be necessary or convenient for the refunding of the Refunded Bonds and
for the issuance of the Bonds pursuant to the terms of this ordinance.
W: Word Processing \Ordinances\2003 Bond Refunding 11 -22- 2011 -final
46 PM:mrh Page 6 of 19
Section v. Bond Registrar; Registration and Transfer of Bonds.
A. Registration of Bonds. The Bonds shall be issued only in registered form as
to both principal and interest and shall be recorded on the Bond Register.
B. Bond Registrar. The Bond Registrar shall keep, or cause to be kept,
sufficient books for the registration and transfer of the Bonds, which shall be open to
inspection by the City at all times. The Bond Register shall contain the name and
mailing address of the Registered Owner of each Bond and the principal amount and
number of each of the Bonds held by each Registered Owner.
The Bond Registrar is authorized, on behalf of the City, to authenticate and deliver
Bonds transferred or exchanged in accordance with the provisions of the Bonds and this
ordinance, to serve as the City's paying agent for the Bonds and to carry out all of the
Bond Registrar's powers and duties under this ordinance and City's Registration
Ordinance.
The Bond Registrar shall be responsible for its representations contained in the
Bond Registrar's Certificate of Authentication on the Bonds. The Bond Registrar may
become either a Registered or Beneficial Owner of Bonds with the same rights it would
have if it were not the Bond Registrar and, to the extent permitted by law, may act as
depository for and permit any of its officers or directors to act as members of, or in any
other capacity with respect to, any committee formed to protect the rights of Beneficial
Owners.
C. Transfer and Exchange of Bonds. Bonds surrendered to the Bond Registrar
may be exchanged for Bonds in any Authorized Denomination of an equal aggregate
principal amount and of the same interest rate and maturity. Bonds may be transferred
only if endorsed in the manner provided thereon and surrendered to the Bond Registrar.
Any exchange or transfer shall be without cost to the owner or transferee. The Bond
Registrar shall not be obligated to exchange or transfer any Bond during the 15 days
preceding any principal payment or redemption date.
D. DTC and the Book Entry System. The Bonds initially shall be registered in
the name of Cede Co., as the nominee of DTC. The Bonds so registered shall be
held in fully immobilized form by DTC as depository in accordance with the provisions of
the 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 with respect to the Bonds regarding accuracy of any records maintained by
DTC or DTC participants of any amount in respect of principal of or interest on the
Bonds, or any notice which is permitted or required to be given to Registered Owners
hereunder (except such notice as is required to be given by the Bond Registrar to DTC).
For as long as any Bonds are held in fully immobilized form, DTC, its nominee or its
successor depository shall be deemed to be the Registered Owner for all purposes
hereunder and all references to registered owners, bondowners, bondholders or the like
shall mean DTC or its nominee and, except for the purpose of the City's undertaking
herein to provide continuing disclosure, shall not mean the Beneficial Owners.
Registered ownership of such Bonds, or any portions thereof, may not thereafter be
W: Word Processing \Ordinances\2003 Bond Refunding 11 -22- 2011 -final
PM:mrh Page 7 of 19
47
transferred except: (i) to any successor of DTC or its nominee, if that successor shall
be qualified under any applicable laws to provide the services proposed to be provided
by it; (ii) to any substitute depository appointed by the City or such substitute
depository's successor; or (iii) to any person if the Bonds are no longer held in
immobilized form.
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 City that it no
longer wishes to continue the system of book entry transfers through DTC or its
successor (or any substitute depository or its successor), the City may 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.
If (i) DTC or its successor (or substitute depository or its successor) resigns from its
functions as depository, and no substitute depository can be obtained or (ii) the City
determines that the Bonds are to be in certificated form, the ownership of Bonds may be
transferred to any person as provided herein and the Bonds no longer shall be held in
fully immobilized form.
Section 6. Form and Execution of Bonds. The Bonds shall be prepared in a
form consistent with the provisions of this ordinance and State law and shall be signed
by the Mayor and City Clerk, either or both of whose signatures may be manual or in
facsimile, and the seal of the City or a facsimile reproduction thereof shall be impressed
or printed thereon.
Only Bonds bearing a Certificate of Authentication in the following form, manually
signed by the Bond Registrar, shall be valid or obligatory for any purpose or entitled to
the benefits of this ordinance: "Certificate Of Authentication. This Bond is one of the
fully registered City of Tukwila, Washington, Limited Tax General Obligation Refunding
Bonds, 2011, described in the Bond Ordinance." The authorized signing of a Certificate
of Authentication shall be conclusive evidence that the Bond so authenticated has been
duly executed, authenticated and delivered and is entitled to the benefits of this
ordinance.
If any officer whose manual or facsimile signature appears on the Bonds ceases to
be an officer of the City authorized to sign bonds before the Bonds bearing his or her
manual or facsimile signature are authenticated or delivered by the Bond Registrar or
issued by the City, those Bonds nevertheless may be authenticated, issued and
delivered and, when authenticated, issued and delivered, shall be as binding on the City
as though that person had continued to be an officer of the City authorized to sign
bonds. Any Bond also may be signed on behalf of the City by any person who, on the
actual date of signing of the Bond, is an officer of the City authorized to sign bonds,
although he or she did not hold the required office on the date of issuance of the Bonds.
Section 7. Payment of Bonds. Both principal of and interest on the Bonds shall
be payable in lawful money of the United States of America. For as long as the Bonds
are registered in the name of DTC or its nominee, payment of principal of and interest
on the Bonds shall be made in the manner set forth in the Letter of Representations. If
the Bonds cease to be in book entry-only form, interest on the Bonds shall be paid by
W: Word Processing \Ordinances\2003 Bond Refunding 11 -22- 2011 -final
48 PM:mrh Page 8 of 19
checks or drafts of the Bond Registrar mailed on the interest payment date to the
Registered Owners at the addresses appearing on the Bond Register on the 15th day of
the month preceding the interest payment date or by electronic transfer on the interest
payment date. The City shall not be required to make electronic transfers except to a
Registered Owner of Bonds pursuant to a request in writing (and at the sole expense of
that Registered Owner) received at least 10 days before an interest payment date.
Principal of the Bonds shall be payable upon presentation and surrender of the Bonds
by the Registered Owners to the Bond Registrar.
Section 8. Redemption Provisions and Open Market Purchase of Bonds.
A. Optional Redemption. The Designated Representative may approve the
designation of certain maturities of the Bonds as being subject to redemption at the
option of the City prior to their respective maturities on the dates and at the prices set
forth in the Bond Purchase Contract. The Designated Representative may also, in his
or her discretion, approve the designation of certain maturities of the Bonds as not
being subject to redemption prior to maturity. Notwithstanding the foregoing provisions
of this ordinance, if the final maturity of the Bonds is more than 10 years after the
Closing Date, the Bonds then outstanding shall be subject to optional redemption on at
least one date that occurs less than 10 years after the Closing Date.
B. Term Bonds. The Designated Representative may approve the designation
of certain maturities of the Bonds as Term Bonds, as set forth in the Bond Purchase
Contract. The City shall redeem Term Bonds, if not previously redeemed under any
optional redemption provisions or purchased and surrendered for cancellation under the
provisions set forth below, at a price of par plus accrued interest on the annual
redemption dates and in annual redemption amounts approved by the Designated
Representative. If the City redeems under the optional redemption provisions,
purchases in the open market or defeases Term Bonds, the par amount of the Term
Bonds so redeemed, purchased or defeased (irrespective of their actual redemption or
purchase prices) shall be credited against one or more scheduled mandatory
redemption amounts for those Term Bonds. The City shall determine the manner in
which the credit is to be allocated and shall notify the Bond Registrar in writing of its
allocation prior to the earliest mandatory redemption date for that maturity of Term
Bonds for which notice of redemption has not already been given.
C. Partial Redemptions, Portions of the principal amount of any Bond, in any
Authorized Denomination, may be redeemed. if less than all of the principal amount of
any Bond is redeemed, upon surrender of that Bond to the Bond Registrar, there shall
be issued to the Registered Owner, without charge, a new Bond (or Bonds, at the option
of the Registered Owner) of the same maturity and interest rate in any Authorized
Denomination in the aggregate principal amount remaining unredeemed.
D. Selection of Bonds for Redemption. If fewer than all of the outstanding
Bonds within a maturity are to be redeemed prior to maturity, selection of Bonds for
redemption shall be randomly within a maturity in such manner as the Bond Registrar
shall determine. Notwithstanding the foregoing, for as long as the Bonds are registered
W: Word Processing \Ordinances\2003 Bond Refunding 11 -22 -2011 -final
PM:mrh Page 9 of 19
in the name of DTC or its nominee, selection of Bonds for redemption shall be in
accordance with the Letter of Representations.
E. Notice of Redemption. While the Bonds are held by DTC in book -entry only
form, any notice of redemption shall be given at the time, to the entity and in the manner
required by DTC in accordance with the Letter of Representations, and the Bond
Registrar shall not be required to give any other notice of redemption. If the Bonds
cease to be in book -entry only form unless waived by any Registered Owner of the
Bonds to be redeemed, the City shall cause notice of any intended redemption of Bonds
to be given by the Bond Registrar not less than 20 nor more than 60 days prior to the
date fixed for redemption by first -class mail, postage prepaid, to the Registered Owner
of any Bond to be redeemed at the address appearing on the Bond Register at the time
the Bond Registrar prepares the notice, and the requirements of this sentence shall be
deemed to have been fulfilled when notice has been mailed as so provided, whether or
not it is actually received by the Registered or Beneficial Owner of any Bond.
In the case of an optional redemption, the notice may state that the City retains the
right to rescind the redemption notice and the related optional redemption of Bonds by
giving a notice of rescission to the affected Registered Owners at any time prior to the
scheduled optional redemption date. Any notice of optional redemption that is so
rescinded shall be of no effect, and the Bonds for which the notice of optional
redemption has been rescinded shall remain outstanding.
In addition, the redemption notice shall be mailed or sent electronically within the
same period to the MSRB, consistent with the Undertaking, to any nationally recognized
rating agency which at the time maintains a rating on the Bonds at the request of the
City, and to such other persons and with such additional information as the Finance
Director shall determine, but these additional mailings shall not be a condition precedent
to the redemption of Bonds.
F. Effect of Redemption. Interest on Bonds called for redemption shall cease to
accrue on the date fixed for redemption, except in the case of a rescinded optional
redemption as described above, or unless the Bond or Bonds called are not redeemed
when presented pursuant to the call.
G. Open Market Purchase. The City further reserves the right and option to
purchase any or all of the Bonds in the open market at any time at any price acceptable
to the City plus accrued interest to the date of purchase.
H. Cancellation of Bonds. All Bonds purchased or redeemed under this section
shall be canceled.
Section 9. Failure To Redeem Bonds. If any Bond is not redeemed when
properly presented at its maturity or date set for redemption, the City shall be obligated
to pay interest on that Bond at the same rate provided in the Bond from and after its
maturity or date set for redemption until that Bond, both principal and interest, is paid in
full or until sufficient money for its payment in full is on deposit in the Bond Fund and the
Bond has been called for payment by giving notice of that call to the Registered Owner.
W: Word Processing \Ordinances\2003 Bond Refunding 11 -22 -2011 -final
50 PM:mrh Page 10 of 19
Section 10. Pledge of Taxes. For as long as any of the Bonds are outstanding,
the City irrevocably pledges to include in its budget and levy taxes annually, within the
constitutional and statutory tax limitations provided by law without a vote of the electors
of the City, on all of the taxable property within the City in an amount sufficient, together
with other money legally available and to be used therefor, to pay when due the
principal of and interest on the Bonds. The full faith, credit and resources of the City are
pledged irrevocably for the annual levy and collection of those taxes and the prompt
payment of that principal and interest.
Section 11. Refunding of the Refunded Bonds.
A. Appointment of Refunding Trustee. U.S. Bank National Association of
Seattle, Washington, is hereby appointed Refunding Trustee.
B. Authorization for Refunding Trust Agreement. The Designated
Representative and the Mayor are each independently authorized to execute and
deliver to the Refunding Trustee a Refunding Trust Agreement, which sets forth duties,
obligations and responsibilities of the Refunding Trustee in connection with the
Refunding Plan, provisions for payment of the fees, compensation and expenses of
such Refunding Trustee, and such other provisions as may be necessary so that the
Bonds are in compliance with the requirements of federal law governing the exclusion of
interest on the Bonds from gross income for federal income tax purposes.
C. Use of Bond Proceeds. Proceeds from the sale of the Bonds in the amount
sufficient to carrying out the Refunding Plan shall be deposited immediately upon the
receipt thereof with the Refunding Trustee and used to discharge the obligations of the
City relating to the Refunded Bonds under the Refunded Bond Ordinance by providing
for the payment of the amounts required to be paid by the Refunding Plan. Such
obligations shall be discharged fully by the Refunding Trustee's simultaneous purchase
of Acquired Obligations, bearing such interest and maturing as to principal and interest
in such amounts and at such times so as to provide, together with a beginning cash
balance, if necessary, for the payment of the amounts required to be paid by the
Refunding Plan. The Acquired Obligations shall be listed and more particularly
described in the Refunding Trust Agreement, but are subject to substitution as set forth
below. The Designated Representative is authorized and directed to approve the
Acquired Obligations to be purchased. The Designated Representative also is
authorized, in his or her discretion, to cause the City to transfer to the Refunding
Trustee, for purposes of accomplishing the Refunding Plan, all or a portion of the money
on deposit in the Bond Fund immediately preceding the Closing Date. Any Bond
proceeds or other money deposited with the Refunding Trustee not needed to carry out
the Refunding Plan shall be returned to the City as soon as reasonably practicable
following the delivery of the Bonds to the Underwriter. Any Bond proceeds so returned
to the City shall be deposited in the Bond Fund and used to pay interest on the Bonds
on the first interest payment date.
D. Substitution of Acquired Obligations. Prior to the purchase of any Acquired
Obligations, the City reserves the right to substitute other noncallable, nonprepayable
direct obligations of the United States of America "Substitute Obligations for any of
W: Word Processing \Ordinances\2003 Bond Refunding 11 -22- 2011 -final
PM:mrh Page 11 of 19
51
the Acquired Obligations and to use any savings created thereby for any lawful City
purpose if, (i) in the opinion of Bond Counsel the interest on the Bonds and the
Refunded Bonds will remain excluded from gross income for federal income tax
purposes under Sections 103, 148 and 149(d) of the Code, and (ii) such substitution
shall not impair the timely payment of the amounts required to be paid by the Refunding
Plan, as verified by a nationally recognized independent certified public accounting firm.
After the purchase of the Acquired Obligations by the Refunding Trustee, the City
reserves the right to substitute therefor cash or Substitute Obligations subject to the
conditions that such money or securities held by the Refunding Trustee shall be
sufficient to carry out the Refunding Plan, that such substitution will not cause the
Bonds or the Refunded Bonds to be arbitrage bonds within the meaning of Section 148
of the Code and regulations thereunder in effect on the date of such substitution and
applicable to obligations issued on the Closing Date, and that the City obtain, at its
expense: (i) a verification by a nationally recognized independent certified public
accounting firm confirming that the payments of principal of and interest on the
Substitute Obligations, if paid when due, and any other money held by the Refunding
Trustee will be sufficient to carry out the Refunding Plan; and (ii) an opinion from Bond
Counsel to the effect that the disposition and substitution or purchase of the Substitute
Obligations, under the statutes, rules and regulations then in force and applicable to the
Bonds, will not cause the interest on the Bonds or the Refunded Bonds to be included in
gross income for federal income tax purposes and that such disposition and substitution
or purchase is in compliance with the statutes and regulations applicable to the Bonds
and the Refunded Bonds. Any surplus money resulting from the sale, transfer, other
disposition or redemption of the Acquired Obligations and Substitute Obligations
therefor shall be released from the Refunding Trustee and transferred to the City to be
used for any lawful City purpose.
E. Administration of Refunding Plan. The Refunding Trustee is authorized and
directed to purchase the Acquired Obligations (or Substitute Obligations) and to make
the payments required to be made by the Refunding Plan from the Acquired Obligations
(or Substitute Obligations) and money deposited with the Refunding Trustee pursuant to
this ordinance. All Acquired Obligations (or Substitute Obligations) and money
deposited with the Refunding Trustee and any income therefrom shall be held
irrevocably, invested and applied in accordance with the provisions of the Refunded
Bond Ordinance, this ordinance, chapter 39.53 RCW and other applicable laws of the
State and the Refunding Trust Agreement. All necessary and proper fees,
compensation and expenses of the Refunding Trustee and all other costs of carrying
out the Refunding Plan and issuing the Bonds, including bond printing, rating service
fees, verification fees, Bond Counsel's fees and other related expenses, shall be paid
out of the proceeds of the Bonds.
F.. Call for Redemption of Refunded Bonds. Effective upon the City's initial
delivery of the Bonds to the Underwriter in exchange for the purchase price thereof, the
City calls for redemption on December 1, 2013, all of the Refunded Bonds at the price
of par plus accrued interest. Such call for redemption shall be irrevocable once it
becomes effective. The date on which the Refunded Bonds are herein called for
redemption is the first date on which those bonds may be called. The Refunding
W: Word Processing \Ordinances \2003 Bond Refunding 11 -22- 2011 -final
PM:mrh Page 12 of 19
52
Trustee is authorized and directed to give or cause to be given such notices as
required, at the times and in the manner required, pursuant to the Refunded Bond
Ordinance and the Refunding Trust Agreement in order to effect the redemption of the
Refunded Bonds prior to their stated maturity dates.
G. Additional Findings and Determinations with Respect to the Refunding.
Prior to the execution of the Bond Purchase Agreement, the Designated Representative
must determine, on behalf of the City, that the issuance, sale and delivery of the Bonds
will effect a net present value savings to the City and its taxpayers of at least 3.00% as
set forth in Section 4 hereof. The City Council finds and determines that such net
present value savings is a substantial savings and that achieving such net present value
savings by issuing the Bonds is in the best interest of the City. In making such finding
and determination, the City Council has given consideration to the fixed maturities of the
Bonds and the Refunded Bonds, the costs related to the issuance, sale and delivery of
the Bonds and the known earned income from the investment of the proceeds of the
issuance and sale of the Bonds used in the Refunding Plan pending payment and
redemption of the Refunded Bonds.
The City Council further finds and determines that the money to be deposited with
the Refunding Trustee for the Refunded Bonds in accordance with this Section 11 will
discharge and satisfy the obligations of the City under the Refunded Bond Ordinance
with respect to the Refunded Bonds, and the pledges, charges, trusts, covenants and
agreements of the City therein made or provided for as to the Refunded Bonds, and that
the Refunded Bonds shall no longer be deemed to be outstanding under the Refunded
Bond Ordinance immediately upon the deposit of such money with the Refunding
Trustee.
Section 12. Tax Covenants; Designation of Bonds as "Qualified Tax Exempt
Obligations."
A. Preservation of Tax Exemption for Interest on Bonds. The City covenants
that it will take all actions necessary to prevent interest on the Bonds from being
included in gross income for federal income tax purposes, and it will neither take any
action nor make or permit any use of proceeds of the Bonds or other funds of the City
treated as proceeds of the Bonds at any time during the term of the Bonds which will
cause interest on the Bonds to be included in gross income for federal income tax
purposes. The City also covenants that it will, to the extent the arbitrage rebate
requirements of Section 148 of the Code are applicable to the Bonds, take all actions
necessary to comply (or to be treated as having complied) with those requirements in
connection with the Bonds, including the calculation and payment of any penalties that
the City has elected to pay as an alternative to calculating rebatable arbitrage, and the
payment of any other penalties if required under Section 148 of the Code to prevent
interest on the Bonds from being included in gross income for federal income tax
purposes. The Designated Representative is authorized and directed to adopt and
implement on behalf of the City procedures to facilitate compliance by the City with the
covenants in this Section 12(A) and the applicable requirements of the Code that must
be satisfied after the issue date to maintain the tax exemption for interest on the 2003A
Bonds and the Bonds after the Closing Date.
W: Word Processing \Ordinances\2003 Bond Refunding 11 -22- 2011 -final
PM:mrh Page 13 of 19
53
B. Designation of Bonds as "Qualified Tax- Exempt Obligations." The City
has determined and certifies that (i) the Bonds are not "private activity bonds" within the
meaning of Section 141 of the Code; (ii) the reasonably anticipated amount of tax
exempt obligations (other than private activity bonds and other obligations not required
to be included in such calculation) which the City and any entity subordinate to the City
(including any entity that the City controls, that derives its authority to issue tax exempt
obligations from the City, or that issues tax exempt obligations on behalf of the City) will
issue during the calendar year in which the Bonds are issued will not exceed
$10,000,000; and (iii) the amount of tax- exempt obligations, including the Bonds,
designated by the City as "qualified tax exempt obligations" for the purposes of Section
265(b)(3) of the Code during the calendar year in which the Bonds are issued does not
exceed $10,000,000. The City designates the Bonds as "qualified tax exempt
obligations" for the purposes of Section 265(b)(3) of the Code.
Section 13. Refunding or Defeasance of the Bonds. The City may issue
refunding bonds pursuant to the laws of the State or use money available from any
other lawful source to pay when due the principal of and interest on the Bonds, or any
portion thereof included in a refunding or defeasance plan, and to redeem and retire,
refund or defease all such then outstanding Bonds (hereinafter collectively called the
"defeased Bonds and to pay the costs of the refunding or defeasance. If money
and /or "government obligations" (as defined in chapter 39.53 RCW, as now or hereafter
amended) maturing at a time or times and bearing interest in amounts (together with
money, if necessary) sufficient to redeem and retire, refund or defease the defeased
Bonds in accordance with their terms are set aside in a special trust fund or escrow
account irrevocably pledged to that redemption, retirement or defeasance of defeased
Bonds (hereinafter called the "trust account then all right and interest of the Owners of
the defeased Bonds in the covenants of this ordinance and in the funds and accounts
obligated to the payment of the defeased Bonds shall cease and become void. The
Owners of defeased Bonds shall have the right to receive payment of the principal of
and interest on the defeased Bonds from the trust account. The City shall include in the
refunding or defeasance plan such provisions as the City deems necessary for the
random selection of any defeased Bonds that constitute less than all of a particular
maturity of the Bonds, for notice of the defeasance to be given to the owners of the
defeased Bonds and to such other persons as the City shall determine, and for any
required replacement of Bond certificates for defeased Bonds. The defeased Bonds
shall be deemed no longer outstanding, and the City may apply any money in any other
fund or account established for the payment or redemption of the defeased Bonds to
any lawful purposes as it shall determine.
If the Bonds are registered in the name of DTC or its nominee, notice of any
defeasance of Bonds shall be given to DTC in the manner prescribed in the Letter of
Representations for notices of redemption of Bonds.
Section 14. Bond Fund and Deposit of Bond Proceeds.
A. Bond Fund. The Bond Fund is hereby created and established in the office of
the Finance Director as a special fund designated the Limited Tax General Obligation
Refunding Bond Fund, 2011, for the purpose of paying principal of and interest on the
W: Word Processing \Ordinances\2003 Bond Refunding 11 -22- 2011 -final
54 PM:mrh Page 14 of 19
Bonds. All taxes and other amounts allocated to the payment of the principal of and
interest on the Bonds shall be deposited in the Bond Fund.
B. Deposit of Bond Proceeds. The principal proceeds and premium, if any,
received from the sale and delivery of the Bonds shall be used to pay the costs of sale
and issuance of the Bonds and deposited, invested and used in accordance with the
Refunding Plan.
Section 15. Undertaking to Provide Continuing Disclosure. To meet the
requirements of paragraph (b)(5) of Rule 15c2 -12, as applicable to a participating
underwriter for the Bonds, the City makes the following written Undertaking for the
benefit of holders of the Bonds:
A. Undertaking to Provide Annual Financial Information and Notice of
Listed Events. The City undertakes to provide or cause to be provided, either directly
or through a designated agent, to the MSRB, in an electronic format as prescribed by
the MSRB, accompanied by identifying information as prescribed by the MSRB:
(i) Annual financial information and operating data of the type included in the
final official statement for the Bonds and described in subsection (B) of this section
"annual financial information
(ii) Timely notice (not in excess of 10 business days after the occurrence of
the event) of the occurrence of any of the following events with respect to the Bonds:
(1) principal and interest payment delinquencies; (2) non payment related defaults, if
material; (3) unscheduled draws on debt service reserves reflecting financial difficulties;
(4) unscheduled draws on credit enhancements reflecting financial difficulties; (5)
substitution of credit or liquidity providers, or their failure to perform; (6) adverse tax
opinions, the issuance by the Internal Revenue Service of proposed or final
determinations of taxability, Notice of Proposed Issue (IRS Form 5701 TEB) or other
material notices or determinations with respect to the tax status of the Bonds; (7)
modifications to rights of holders of the Bonds, if material; (8) bond calls (other than
scheduled mandatory redemptions of Term Bonds), if material, and tender offers; (9)
defeasances; (10) release, substitution, or sale of property securing repayment of the
Bonds, if material; (11) rating changes; (12) bankruptcy, insolvency, receivership or
similar event of the City, as such "Bankruptcy Events" are defined in Rule 15c2 -12; (13)
the consummation of a merger, consolidation, or acquisition involving the City or the
sale of all or substantially all of the assets of the City other than in the ordinary course of
business, the entry into a definitive agreement to undertake such an action or the
termination of a definitive agreement relating to any such actions, other than pursuant to
its terms, if material; and (14) appointment of a successor or additional trustee or the
change of name of a trustee, if material.
(iii) Timely notice of a failure by the City to provide required annual financial
information on or before the date specified in subsection (B) of this section.
B. Type of Annual Financial Information Undertaken to be Provided. The
annual financial information that the City undertakes to provide in subsection (A) of this
section:
W: Word Processing \Ordinances\2003 Bond Refunding 11 -22- 2011 -final
PM:mrh Page 15 of 19
55
(i) Shall consist of (1) annual financial statements prepared (except as noted
in the financial statements) in accordance with generally accepted accounting principles
applicable to State local governmental units such as the City, as such principles may be
changed from time to time, which statements shall not be audited, except, however, that
if and when audited financial statements are otherwise prepared and available to the
City they will be provided; (2) outstanding general obligation bonds; (3) assessed
valuation for the fiscal year; (4) regular property tax levy rate and regular property tax
levy rate limit for the fiscal year; and (5) general fund revenues from other major tax
sources; and
(ii) Shall be provided not later than the last day of the ninth month after the
end of each fiscal year of the City (currently, a fiscal year ending December 31), as
such fiscal year may be changed as required or permitted by State law, commencing
with the City's fiscal year ending December 31, 2012; and
(iii) May be provided in a single or multiple documents, and may be
incorporated by specific reference to documents available to the public on the Internet
website of the MSRB or filed with the SEC.
C. Amendment of Undertaking. The Undertaking is subject to amendment after
the primary offering of the Bonds without the consent of any holder of any Bond, or of
any broker, dealer, municipal securities dealer, participating underwriter, rating agency
or the MSRB, under the circumstances and in the manner permitted by Rule 15c2 -12.
The City will give notice to the MSRB of the substance (or provide a copy) of any
amendment to the Undertaking and a brief statement of the reasons for the amendment.
If the amendment changes the type of annual financial information to be provided, the
annual financial information containing the amended financial information will include a
narrative explanation of the effect of that change on the type of information to be
provided.
D. Beneficiaries. The Undertaking evidenced by this section shall inure to the
benefit of the City and any Beneficial Owner of Bonds, and shall not inure to the benefit
of or create any rights in any other person.
E. Termination of Undertaking. The City's obligations under this Undertaking
shall terminate upon the legal defeasance of all of the Bonds. In addition, the City's
obligations under this Undertaking shall terminate if those provisions of Rule 15c2 -12
which require the City to comply with this Undertaking become legally inapplicable in
respect of the Bonds for any reason, as confirmed by an opinion of nationally
recognized bond counsel or other counsel familiar with federal securities laws delivered
to the City, and the City provides timely notice of such termination to the MSRB.
F. Remedy for Failure to Comply with Undertaking. As soon as practicable
after the City learns of any failure to comply with the Undertaking, the City will proceed
with due diligence to cause such noncompliance to be corrected. No failure by the City
or other obligated person to comply with the Undertaking shall constitute a default in
respect of the Bonds. The sole remedy of any Beneficial Owner of a Bond shall be to
take such actions as that Beneficial Owner deems necessary, including seeking an
W: Word Processing \Ordinances\2003 Bond Refunding 11 -22- 2011 -final
PM:mrh Page 16 of 19
56
order of specific performance from an appropriate court, to compel the City or other
obligated person to comply with the Undertaking.
G. Designation of Official Responsible to Administer Undertaking. The
Finance Director of the City (or such other officer of the City who may in the future
perform the duties of that office) or his or her designee is authorized and directed in his
or her discretion to take such further actions as may be necessary, appropriate or
convenient to carry out the Undertaking of the City in respect of the Bonds set forth in
this section and in accordance with Rule 15c2 -12, including, without limitation, the
following actions:
(i) Preparing and filing the annual financial information undertaken to be
provided;
(ii) Determining whether any event specified in subsection (A) has occurred,
assessing its materiality, where necessary, with respect to the Bonds, and preparing
and disseminating any required notice of its occurrence;
(iii) Determining whether any person other than the City is an "obligated
person" within the meaning of Rule 15c2 -12 with respect to the Bonds, and obtaining
from such person an undertaking to provide any annual financial information and notice
of listed events for that person in accordance with Rule 15c2 -12;
(iv) Selecting, engaging and compensating designated agents and
consultants, including but not limited to financial advisors and legal counsel, to assist
and advise the City in carrying out the Undertaking; and
(v) Effecting any necessary amendment of the Undertaking.
Section 16. General Authorization; Delivery of Bonds. The Designated
Representative, the Mayor and other appropriate officers of the City are each authorized
to do everything as in their judgment may be necessary, appropriate or desirable in
order to carry out the terms and provisions of, and complete the transactions
contemplated in connection with, this ordinance.
The Bonds will be printed at City expense and will be delivered to the purchaser in
accordance with the Bond Purchase Contract, with the approving legal opinion of Bond
Counsel regarding the Bonds.
Section 17. Official Statement.
A. Preliminary Official Statement Under the Rule. The Designated
Representative and the Mayor are each independently authorized to review and
approve the information about the City contained in any preliminary official statement
(the "Preliminary Official Statement prepared in connection with the public offering and
sale of Bonds to be sold to the public; and (for the sole purpose of aiding the
Underwriter in its compliance with Section (b)(1) of the Rule, if applicable) "deem final"
that Preliminary Official Statement as of its date, except for the omission of information
permitted to be omitted by the Rule and approve or ratify the distribution of that
Preliminary Official Statement to potential purchasers of the Bonds.
W: Word Processing \Ordinances\2003 Bond Refunding 11 -22- 2011 -final
PM:mrh Page 17 of 19
57
B. Approval of Official Statement. The Designated Representative and the
Mayor are each independently authorized to review and approve distribution of a final
official statement with respect to the Bonds to be sold to the public. The City agrees to
cooperate with the Underwriter to deliver or cause to be delivered, within such period as
may be required by applicable law, copies of the final official statement pertaining to the
Bonds in sufficient quantity to comply with paragraph (b)(4) of the Rules and rules of the
MSRB.
Section 18. Supplemental Ordinances. The City Council from time to time and at
any time may pass an ordinance or ordinances supplemental to this ordinance which
supplemental ordinance or ordinances thereafter shall become a part of this ordinance,
for any one or more of the following purposes:
A. To add to the covenants and agreements of the City in this ordinance such
other covenants and agreements thereafter to be observed, which shall not adversely
affect the interests of the holders and Owners of the Bonds, or to surrender any right or
power herein reserved to or conferred upon the City.
B. To make such provisions for the purpose of curing any ambiguities or of
curing, correcting or supplementing any defective provision contained in this ordinance
in regard to matters or questions arising under such ordinances as the City Council may
deem necessary or desirable and not inconsistent with such ordinances and which shall
not materially adversely affect the interest of the holders and Owners of the Bonds.
Section 19. General Authorization and Ratification. The Designated
Representative, Mayor, City Administrator and other appropriate officers of the City are
severally authorized and directed to take any actions and to execute documents as in
their judgment may be necessary or desirable to carry out the terms of, and complete
the transactions contemplated by, this ordinance and the Bond Purchase Contract
(including everything necessary for the prompt delivery of the Bonds to the Underwriter
and for the proper application, use and investment of the proceeds of the sale thereof),
and all actions heretofore taken in furtherance thereof and not inconsistent with the
terms of this ordinance are ratified and confirmed in all respects.
Section 20. Severability. The provisions of this ordinance are declared to be
separate and severable. If a court of competent jurisdiction, all appeals having been
exhausted or all appeal periods having run, finds any provision of this ordinance to be
invalid or unenforceable as to any person or circumstance, such offending provision
shall, if feasible, be deemed to be modified to be within the limits of enforceability or
validity. However, if the offending provision cannot be so modified, it shall be null and
void with respect to the particular person or circumstance, and all other provisions of
this ordinance in all other respects, and the offending provision with respect to all other
persons and all other circumstances, shall remain valid and enforceable.
W: Word Processing \Ordinances \2003 Bond Refunding 11 -22- 2011 -final
PM:mrh Page 18 of 19
i
Section 21. Effective Date of Ordinance. This ordinance or a summary thereof
shall be published in the official newspaper of the City, and shall take effect and be in
full force five days after passage and publication as provided by law.
PASSED BY THE CITY COUNCIL OF THE CITY OF TUKWILA, WASHINGTON, at
a Regular Meeting thereof this day of 1 2011,
ATTEST /AUTHENTICATED:
Christy O'Flaherty, CMC, City Clerk
APPROVED AS TO FORM BY
Shelley M. Kerslake, City Attorney
Jim Haggerton, Mayor
Filed with the City Clerk:
Passed by the City Council:
Published:
Effective Date:
Ordinance Number:
W: Word Processing \Ordinances\2003 Bond Refunding 11 -22- 2011 -final
PM:mrh
Page 19 of 19
59
M-1 1
City of Tukwila
Washington
Resolution No.
A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF
TUKWILA, WASHINGTON, ESTABLISHING A SECOND
FINANCE DEPARTMENT CHANGE FUND LEVEL, AND
REPEALING RESOLUTION NO. 1721.
WHEREAS, the Tukwila City Council previously established Change Funds and
Petty Cash Fund levels, most recently by Resolution No. 1721, passed July 19, 2010;
and
WHEREAS, the Change Fund levels established by Resolution No. 1721 included
only one Change Fund level for the Finance Department, from the Water Fund -401; and
WHEREAS, there is a need to establish a second Change Fund level from the
General Fund -000 in the amount of $100.00 for the Finance Department for operational
efficiency and improved customer service;
NOW, THEREFORE, THE CITY COUNCIL OF THE CITY OF TUKWILA,
WASHINGTON, HEREBY RESOLVES AS FOLLOWS:
Section 1. The Change Fund levels are hereby set as follows:
Finance Department
Finance Department
City Clerk's Office
Seattle Southside Visitor Center
Municipal Court
Parks and Recreation
Golf Course
lGeneral Fund
000
!water Fund
401
General Fund
000
Motel /Motel Tax Fund
101
General Fund
000
General Fund
000
Foster Golf Course Fund
411
W: \Word Processing \Resolutions \Finance Dept- Second Change Fund Level 11 -3 -11
RT:bjs
100.00
100.00
100.00
100.00
300.00
300.00
1,200.00
(or less as needed)
Page 1 of 2
61
Section 2. The Petty Cash Fund levels are hereby set as follows:
Finance Department
lGeneral Fund
000
800.00
Police Investigation /Tukwila
lGeneral Fund
000
10,000.00
Fire Department
lGeneral Fund
000
350.00
Parks and Recreation
lGeneral Fund
000
500.00
Public Works Division it
lGeneral Fund
000
350.00
Public Works Division I
lGeneral Fund
000 1
200.00
Section 3. Resolution No. 1721 is hereby repealed
PASSED BY THE CITY COUNCIL OF THE CITY OF TUKWILA, WASHINGTON, at
a Regular Meeting thereof this day of 2011.
ATTEST /AUTHENTICATED:
Christy O'Flaherty, CMC, City Clerk
APPROVED AS TO FORM BY:
Shelley M. Kerslake, City Attorney
Allan Ekberg, Council President
Filed with the City Clerk:
Passed by the City Council:
Resolution Number:
W: \Word Processing \Resolutions \Finance Dept- Second Change Fund Level 11 -3 -11
62 RT:bjs Page 2 of 2
T U 0 1#1
T Of kwilc7
a
Washington
Resolution No.
A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF
TUKWILA, WASHINGTON, ADOPTING A NEW PUBLIC WORKS
FEE SCHEDULE; AND REPEALING RESOLUTION NO. 1728.
WHEREAS, each year the City analyzes the rate model for the three utility
enterprise funds, which are water, sewer and surface water, to ensure revenues keep
pace with expenses, to update the traffic model, and to analyze the transportation
network to ensure continued compliance with the Growth Management Act and the
City's adopted Comprehensive Plan; and
WHEREAS, the City is authorized to impose fees to recoup the costs of services
rendered,
NOW, THEREFORE, THE CITY COUNCIL OF THE CITY OF TUKWILA,
WASHINGTON, HEREBY RESOLVES AS FOLLOWS:
Section 1. Public Works fees will be charged according to the following schedule,
which shall supersede any previously adopted Public Works Fee Schedule:
PUBLIC WORKS FEE SCHEDULE
PERMIT DESCRIPTION
Type A (Short-Term Nonprofit)
Type B (Short-Term Profit)
Type C
(Infrastructure and Grading on Private Property
and City Right -of -Way and Disturbance of City
Right -of -Way)
Type D (Long -Term)
Type E (Potential Disturbance of
City Riqht -of -Way)
Type F (Blanket Permits)
Additional Inspections
Franchise Telecommunications
Franchise Cable
Street Vacation
FEE
50.00
$100.00
$250.00 application base fee, plus four components
based on construction value:
1) Plan Review
2) Construction Inspection
3) Pavement Mitigation
4) Grading Plan Review
1 $100.00
$100.00
$250.00 processing fee, plus $5,000.00 cash deposit,
withdraw $100.00 per instance for inspection
1 $60.00 per inspection
1 $5,000.00 administrative fee
1 $5,000.00 plus 5% of total revenue
1 $1,200.00
WAWord Process ing- City \Resolutions \PW Fee Schedule -2011 10 -27 -1 l.docx
Page 1 of 5
63
PERMIT DESCRIPTION
Latecomer's Agreements
Flood Zone Control
Copy of City of Tukwila's Infrastructure Design
and Construction Standards
WATER RATES
Water Meter Installation
.75 inch
1 inch
1.5 inch
2 inch
3 inch
4 inch
6 inch
Water Meter Deduct
Water Base Charge (Monthly)
Single Family (one dwelling unit)
Multi Family (more than one dwelling unit)
Commercial /Industrial Customers:
3/4 inch Service
1 inch Service
1 -1/2 inch Service
2 inch Service
3 inch Service
4 inch Service
6 inch Service
8 inch Service
10 inch Service
12 inch Service
Water Rates (Monthly)
Single and Multi Family (Jan -May)
Single and Multi Family (Jun -Sept)
Single and Multi Family (Oct -Dec)
Commercial /Industrial (Jan -May)
Commercial /Industrial (Jun -Sept)
Commercial /Industrial (Oct -Dec)
Fire Protection Service Charges (Monthly)
2 inch Service
3 inch Service
4 inch Service
6 inch Service
8 inch Service
10 inch Service
12 inch Service
FEE
$500.00 processing fee, plus 17% administrative fee,
plus $500.00 segregation fee
I $50.00
$50.00
FEE
600.00
1,100.00
2,400.00
2,800.00
4,400.00
7,800.00
$12,500.00
$25.00
In addition to the monthly water base charge, each
100 cubic feet of water used will be charged as
shown in "Water Rates (Monthly)."
Current 2011
Proposed 2012
10.00
12.00
10.00*
12.00*
*each
dwelling unit
30.00
40.00
40.00
50.00
60.00
75.00
80.00
$100.00
$120.00
$145.00
$160.00
$195.00
$240.00
$290.00
$320.00
$385.00
$400.00
$480.00
$480.00
$575.00
In addition to the
monthly water base charge listed
above, each 100 cubic feet of water will be charged at
the following rates:
$2.79
$3.89
$2.79
$3.62
$4.98
$3.62
Per month based on size of service.
9.00
20.00
35.00
80.00
$120.00
$200.00
$260.00
W: \Word Process ing- City \Resolutions \PW Fee Schedule -2011 10 -27 -1 l.docx Page 2 of 5
64
WATER SERVICES
Water Turn On
After Hour Water Turn On additional fee for
customer requested after hours water turn on
Unauthorized Water Usage after shut -off for
non payment
Special Meter Read customer requested
meter read outside normal read schedule
Shut -off notice
Change in owner, tenant, and /or third party
paying agent
Fire Hydrant per month
Emergency Conservation Sanction
Temporary Water Meter Deposit
.75" and 1" water meter
2.5" water meter
Temporary Water Meter Rental per minimum
60 days expiration
.75" and 1" water meter
2.5" water meter
WATER INTEREST CHARGE
On all water accounts 30 days in arrears from
the date of delinquency until paid
SEWER RATES
Residential Sewer Service
(single dwelling unit)
Residential Sewer Service (multiple dwelling
unit, permanent type)
Commercial and Industrial Sewage Service
FEE
50.00
$100.00
$100.00
30.00
30.00
20.00
20.00
$100.00
300.00
$1,500.00
75.00
150.00
RATE
8% per annum computed on a monthly basis
FEES
Flat rate of $16.06 $19.26 per month
[TMC 14.16.030 (1)]
Flat rate of $16.06 $19.26 per month for each dwelling
unit [TMC 14.16.030 (2)]
Flat rate of $28.'!_' $33.74 per month and, in addition,
any usage over 750 cubic feet of water per month
shall be at the rate of 8. 1-2 $33.74 per 750 cubic
feet [TMC 14.16.030 (4)]
SEWER INTEREST CHARGE
RATE
On all sewer accounts 30 days in arrears from
the date of delinquency until paid
8% per annum computed on
a monthly basis
SURFACE WATER RATES
FEE PER
YEAR
Surface Water Utility Rates Per Year
Service Charge Per Acre
Cateqorv:
Current 2011
Proposed 2012
1. Natural
$111.98
123.17
2. 0 20% Developed Surface
$243.43
267.77
3. 21 50% Developed Surface
$446.16
490.77
4. 51 70% Developed Surface
$665.72
732.29
5. 71 85% Developed Surface
$802.01
882.21
6. 86 100% Developed Surface
$935.55
$1,029.10
7. Single Family Residential Parcels
93.00 per parcel
102.00 per parcel
W: \Word Processing- City \Resolutions\PW Fee Scliedule -2011 10 -27 -1 l.docx
Page 3 of 5
SURFACE WATER INTEREST CHARGE I RATE
On all surface water accounts 30 days in arrears
from the date of delinquency until paid 8% per annum computed on a monthly basis
TRANSPORTATION CONCURRENCY TEST FEE SCHEDULE
Fees for Residential Use
UNIT
ALL TYPES OF RESIDENTIAL
Between 1 and 3
300.00
Between 4 and 5
600.00
Between 6 and 10
1,200.00
Between 11 and 15
2,000.00
Between 16 and 20
3,500.00
Between 21 and 25
5,000.00
Between 26 and 30
6,500.00
Between 31 and 40
8,000.00
Between 41 and 60
$10,000.00
Greater than 60
$12,000.00
All residential uses defined by the ITE Trip Generation Manual Land
Use Codes 200 -299, including
single family, multi family, mobile home parks, and shared housing
I $2,500
Fees for Non- Residential Use
GROSS FLOOR AREA
INDUSTRIAL OFFICE
Less than 5,000 I $1,000 I $1,800
Between 5,001 and 10,000 I $1,500 I $2,700
Between 10,001 and 20,000 1 $2,000 1 $3,600
Between 20,001 and 30,000 I $3,000 I $5,400 I $8,100 I $10,800 I $2,000 I $2,500
Between 30,001 and 40,000 I $4,000 $7,200 $10,800 $10,800 $2,500 $2,500
Between 40,001 and 50,000 I $5,000 $9,000 I $13,500 I $10,800 J $3,000 I $2,500
Between 50,001 and 70,000 I $6,000 I $10,800 I $16,200 $10,800 $4,000 $2,500
Between 70,001 and 90,000 I $7,000 I $12,600 $18,900 $10,800 $5,000 I $2,500
Between 90,001 and 150,000 I $8,000 $14,400 I $21,600 I $10,800 I $6,000 I $2,500
Between 150,001 and 200,000 I $9,000 I $16,200 $24,300 $10,800 $7,000 $2,500
Greater than 200,000 I $10,000 I $18,000 I $24,300 I $10,800 I $8,000 $2,500
2 All industrial /agricultural uses defined by the ITE Trip Generation Manual Land Use Codes 100 -199,
including light and heavy industrial, manufacturing, and warehousing
3 All office, medical, and service related uses defined by the ITE Trip Generation Manual Land Use
Codes 600 -699, 700 -799, and 900 -999, including general office, medical facilities, and banks
4 All retail and recreation uses defined by the ITE Trip Generation Manual Land Use Codes 400 -499,
800 -830 and 837 -899, including retail sales, rental sales, athletic clubs, and theaters
5 All food service uses defined by the ITE Trip Generation Manual Land Use Codes 831 -836, excluding
accessory (stand alone) drive through espresso stands (or similar) under 250 sq. ft. which are
assessed $300
6 All institutional and transportation uses defined by the ITE Trip Generation Manual Land Use Codes
000 -099 and 500 -599, including schools, places of worship, day care, terminals, and transit
W: \Word Processing City \Resolutions \PW Fee Schedule -2011 10 -27 -1 I.docx Page 4 of 5
66
INSTITU-
ALL
TIONAL
OTHER
RETAIL
EATERY
PORT
USES
$2,700
I $5,400
I $500
I $1,500
$4,050
I $8,100
I $1,000
I $2,000
$5,400
$10,800
I $1,500
I $2,500
Between 20,001 and 30,000 I $3,000 I $5,400 I $8,100 I $10,800 I $2,000 I $2,500
Between 30,001 and 40,000 I $4,000 $7,200 $10,800 $10,800 $2,500 $2,500
Between 40,001 and 50,000 I $5,000 $9,000 I $13,500 I $10,800 J $3,000 I $2,500
Between 50,001 and 70,000 I $6,000 I $10,800 I $16,200 $10,800 $4,000 $2,500
Between 70,001 and 90,000 I $7,000 I $12,600 $18,900 $10,800 $5,000 I $2,500
Between 90,001 and 150,000 I $8,000 $14,400 I $21,600 I $10,800 I $6,000 I $2,500
Between 150,001 and 200,000 I $9,000 I $16,200 $24,300 $10,800 $7,000 $2,500
Greater than 200,000 I $10,000 I $18,000 I $24,300 I $10,800 I $8,000 $2,500
2 All industrial /agricultural uses defined by the ITE Trip Generation Manual Land Use Codes 100 -199,
including light and heavy industrial, manufacturing, and warehousing
3 All office, medical, and service related uses defined by the ITE Trip Generation Manual Land Use
Codes 600 -699, 700 -799, and 900 -999, including general office, medical facilities, and banks
4 All retail and recreation uses defined by the ITE Trip Generation Manual Land Use Codes 400 -499,
800 -830 and 837 -899, including retail sales, rental sales, athletic clubs, and theaters
5 All food service uses defined by the ITE Trip Generation Manual Land Use Codes 831 -836, excluding
accessory (stand alone) drive through espresso stands (or similar) under 250 sq. ft. which are
assessed $300
6 All institutional and transportation uses defined by the ITE Trip Generation Manual Land Use Codes
000 -099 and 500 -599, including schools, places of worship, day care, terminals, and transit
W: \Word Processing City \Resolutions \PW Fee Schedule -2011 10 -27 -1 I.docx Page 4 of 5
66
Section 2. Repealer. Resolution No. 1728 is hereby repealed.
PASSED BY THE CITY COUNCIL OF THE CITY OF TUKWILA, WASHINGTON, at a
Regular Meeting thereof this day of 1 2011.
ATTEST /AUTHENTICATED:
Christy O'Flaherty, CMC, City Clerk
APPROVED AS TO FORM BY:
Shelley M. Kerslake, City Attorney
W: \Word Process inb City \Resolutions \PW Fee Schedule -2011 10 -27 -1 Ldocx
Allan Ekberg, Council President
Filed with the City Clerk:
Passed by the City Council:
Resolution Number:
Page 5 of 5
m