HomeMy WebLinkAboutOrd 2630 - $2,450,000 Limited Tax General Obligation Refunding Bonds - Outstanding 2010B LTGOCl*ty of T
Washington
Ordinance No. 2.6 3 a
AN ORDINANCE OF THE CITY COUNCIL OF THE CITY OF
TUKWILA, WASHINGTON, AUTHORIZING THE ISSUANCE
AND SALE OF A LIMITED TAX GENERAL OBLIGATION
REFUNDING BOND OF THE CITY IN THE PRINCIPAL
AMOUNT OF NOT TO EXCEED $2,450,000 TO REFUND THE
CITY'S OUTSTANDING LIMITED TAX GENERAL OBLIGATION
BONDS, 2010B (TAXABLE BUILD AMERICA BONDS —
DIRECT PAYMENT) AND TO PAY THE COST OF ISSUING
THE BOND; PROVIDING THE FORM, TERMS AND
COVENANTS OF THE BOND; DELEGATING THE AUTHORITY
TO APPROVE THE SALE OF THE BOND; PROVIDING FOR
OTHER MATTERS RELATING THERETO; PROVIDING FOR
SEVERABILITY; AND ESTABLISHING AN EFFECTIVE DATE.
WHEREAS, the City of Tukwila, Washington (the "City"), issued its Limited Tax
General Obligation Bonds, 2010E (Taxable Build America Bonds — Direct Payment) on
July 29, 2010 pursuant to Ordinance No. 2296 passed by the City Council
(the "Council") on July 19, 2020 (the "2010 Ordinance"), in the original principal amount
of $3,970,000 (the "2010 Bonds"); and
WHEREAS, the 2010 Ordinance provides that the City may call the 2010 Bonds
maturing on or after December 1, 2020 (the "Refunded Bonds") for redemption on any
date on or after June 1, 2020, in whole or in part, at the price of par plus accrued
interest, if any, to the date of redemption; and
WHEREAS, after due consideration it appears that it is in the best interest of the
City to authorize the issuance of a Limited Tax General Obligation Refunding Bond to
refund and defease the Refunded Bonds as described herein for debt service savings
and to pay costs of issuance the bond; and
WHEREAS, the City has issued a request for proposals from various financial
institutions to purchase the bond authorized herein; and
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WHEREAS, the Council wishes to delegate authority to the Finance Director
(the "Designated Representative"), for a limited time, to select the proposal that is in the
best interest of the City (if any) and to approve the interest rate and the terms of the
bond within the parameters set by this ordinance; and
WHEREAS, the Council now wishes to authorize the issuance of the bond and sale
of the bond to the successful respondent subject to the terms and conditions set forth in
this ordinance;
NOW, THEREFORE, THE CITY COUNCIL OF THE CITY OF TUKWILA,
WASHINGTON, HEREBY ORDAINS AS FOLLOWS:
Section 1. Definitions and Interpretation of Terms.
(a) Definitions. As used in this ordinance, the following words shall have the
following meanings:
Acquired Obligations mean the Government Obligations acquired by the City
under the terms of this ordinance and the Escrow Agreement to effect the defeasance
and refunding of the Refunded Bonds, but only to the extent that the same are acquired
at Fair Market Value.
Bond means the City's Limited Tax General Obligation Refunding Bond, 2020,
authorized to be issued pursuant to the terms of this ordinance.
Bond Counsel means Pacifica Law Group LLP, Seattle, Washington, or an
attorney at law or a firm of attorneys, which is admitted to practice law before the
highest court of any state in the United States of America or the District of Columbia and
nationally recognized and experienced in legal work relating to the issuance of tax-
exempt bonds who is or are selected by the City.
Bond Purchase Contract means a commitment, bond purchase contract, loan
agreement or other contract between the City and the Purchaser, if any, approved by
the Designated Representative pursuant to this ordinance.
Bond Register means the registration records for the Bond maintained by the
Bond Registrar.
Bond Registrar means the City Finance Director, whose duties include registering
and authenticating the Bond, maintaining the Bond Register, transferring ownership of
the Bond, and paying the principal of and interest on the Bond.
Call Date means the date of redemption of the Refunded Bonds as set forth in the
Escrow Agreement.
City means the City of Tukwila, Washington, a municipal corporation duly
organized and existing under the laws of the State of Washington.
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City Administrator means the duly appointed and acting City Administrator,
including anyone acting in such capacity for the position, or the Successor to the duties
of that office.
City Attorney means the duly appointed and acting City Attorney, 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.
Code means the Internal Revenue Code of 1986 as in effect on the date of
issuance of the Bond or (except as otherwise referenced herein) as it may be amended
to apply to obligations issued on the date of issuance of the Bond, 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.
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 Bond.
Designated Representative means the Finance Director, or his or her designee.
Escrow Agent means U.S. Bank National Association, and its successors and
assigns.
Escrow Agreement means the, Escrow Deposit Agreement between the City and
the Escrow Agent to be dated as of the date of closing and delivery of the Bond.
Finance Director means the duly appointed and acting Finance Director of the City
or the successor to such officer.
Fair Market Value means the price at which a willing buyer would purchase the
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" shall include a hedge.
Federal Tax Certificate means the certificate executed by the City setting forth the
requirements of the Code for maintaining the tax exemption of interest on the Bond, and
attachments thereto.
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Govemment Obligations mean those obligations now or hereafter defined as such
i'n Chapter 39.53 RCW,
Interest Rate means the fixed rate of interest on the Bond as approved by the
Designated Representative and set forth 'in the Bond and in the Bond Purchase
Contract.
Maturity Date means the date of final maturity of the Bond, as set forth therein.
Mayor or City Mayor means the elected Mayor of the City, or the successor to the
duties of that office.
Purchaser means the financial institution that is the successful respondent to a
request for proposals to purchase the Bond, selected by the Designated
Representative.
Registered Owner means the person whose name the Bond is registered to on the
Bond Register.
Rule means the Securities and Exchange Commission's Rule 15c2-12 under the
Securities Exchange Act of 1934, as the same may Ibe amended from time to time.
State means the State of Washington.
201'0 Bonds mean the City's Limited Tax General Obligation Bonds, 201 OB
(Taxable Build America Bonds — Direct Payment), issued pursuant to the 2010
Ordinance in the original aggregate principal amount of $3,970,1000 on July 29, 2010.
200 Ordinance means Ordinance No, 2296 passed by the Council on July 19,
2010, authorizing, the issuance of the 2010 Bonds.
(b) Interpretation. In this ordinance, unless the context otherwise requires.,
(1) The terms "hereby," "hereof," "hereto," "herein," "hereunder" and any
similar terms, as used in this ordinance, refer to this ordinance as a whole and not to
any particular article, section, subdivision or clause hereof, and the term "hereafter"
shall mean after, and the term "heretofore" shall mean before, the date of this
ordinance;
(2) Words of any gender shall mean and include correlative words of al'
,ikenders and words importing the singular number shall! mean and include the plura'
number and vice versa;
(3) Words importing persons shall include firms, associations, partnerships
i
(including limited partnerships), trusts, corporations and other legal entities, including
public bodies, as well as natural persons;
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(4) Any headings preceding the text of the several articles and sections of this
ordinance, and any table of contents or marginal notes appended to copies hereof, shall
be solely for convenience of reference and shall not constitute a part of this ordinance,
nor shall they affect its meaning,, construction or effect; and
(5) All references herein to "articles," "sections" and other subdivisions or
clauses are to the corresponding articles, sections, subdivisions or clauses hereof.
Section 2. Findings; Authorization of the Bond.
(a) Findings. The City has established financial policies which provide, as a
general rule, that the City may issue refunding bonds to refund outstanding debt when,
among other reasons, such refunding results in a sufficient net present value savings.
Council approval is necessary prior to the issuance of debt under State law. The
Council hereby finids: (1) it is in the best interest of the City and its taxpayers that it
issue a Limited Tax General Obligation Refunding Bond to refund the outstanding 2010
Bonds for aggregate net present value debt service savings, (2) interest rates are
fluctuating in the current bond market environment, and in order to maximize overall
savings, it is in the best interest of the City to refund the outstanding 2010 Bonds as
soon as possible after the first optional call date (June 1, 2020); (3) the refunding bond
authorized herein will be issued without further Council approval only if the parameters
provided for herein are satisfied; and (4) the adoption of this ordinance and the issuance
of the refunding bond are necessary, routine and consistent with City policy and
Governor Inslee's emergency proclamation issued on March 24, 2020, as extended and
supplemented, suspending portions of the Open Public Meetings Act.
(b) Authorization of Bond For the purpose of defeasing and refunding the
Refunded Bonds, for aggregate net present value savings and paying costs of issuance
of the Bond, the City is hereby authorized to issue, and sell a Limited Tax General
Obligation Refunding Bond in the, principal amount not to exceed $2,450,000 (the
"Bond").
The Bond shall be a general obligation of the City and shall Ibe designated "City of
Tukwila, Washington, Limited Tax General Obligation Refunding Bond, 2020" or other
such designation as set forth in the Bond and approved by the Designated
Representative. The Bond shall be dated as of its date of delivery to the Purchaser,
shall be fully registered as to both principal and interest, shall be in one clenomination,
and shall mature on the Maturity Date. The Bond shall bear interest from its dated date
or the most recent date to which interest has been paid at the Interest Rate. Interest on
the principal amount of the Bond shall be calculated per annurn on a 30/360 basis, or as
otherwise provided in the Bond and in the Bond Purchase Contract. Principal of and
iinterest on the Bond shall be payable at the times and in the amounts as set forth in the
Bond Purchase Contract and in the payment schedule attached to the Bond.
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Section 3. Registration, Exchange and Payments.
(a) RegistrarlBond Registrar. The Finance Director shall act as Bond Registrar.
The Bond Registrar is authorized, on behalf of the City, to authenticate and deliver the
Bond if' transferred or exchanged in accordance, with the provisions of the Bond and this
ordinance and to carry out all of the Bond Registrar's powers and duties under this
ordinance.
(b) Registered Ownership. The City and the Bond Registrar may deem and treat
the Registered Owner of the Bond as the absolute owner for all purposes, and neither
the City nor the Bond Registrar shall be affected by any notice to the contrary. Payment
I
of the Bond shall be made only as described in subsection (d) below. All such
payments made as described in subsection (d) below shall be valid and shall satisfy the
liability of the City upon the Bond to the extent of the amount so paid.
(c) Transfer or Exchange of Registered Ownership. The Bond shall not be
transferrable without the consent of the City except as provided in the Bond and in the
Bond Purchase Contract,
(d') Place and Medium of Payment, Both principal of and interest on the Bond shall
be payable in lawful money of the United States of America. Principal and' interest on
the Bond shall be payable by check, warrant, ACH transfer or by other means mutually
acceptable to the Purchaser and the City. Upon final payment of principal and interest
of the Bond, the Registered Owner shall surrender the Bond for cancellation at the
office of the Bond Registrar in accordance with this ordinance,
(e) Additional Provisions. The Bond will not be registered with The Depository
Trust Company, New York, New York, or any other securities depository. No official
statement, prospectus, offering circular or other offering statement containing material
information with respect to the City or the Bond will be provided in connection with the
issuance of the Bond; the Bond will be unrated, and the Bond will not be assigned a
CUSIP number.
Section 4. Right of Prepayment. The City may prepay the Bond as set forth in
the Bond Purchase Contract. If the Bond is prepaid in full, interest shall cease to accrue
on the date such prepayment occurs.
Section 5. Form of Bond. The Bond shall be in substantially the form set forth in
Exhibit A, which is incorporated (herein by this reference.
Section 6. Execution of Bond. The Bond shall be executed on behalf of the City
with the manual) or facsimile signature of the Mayor, and shall be attested by the manual
or facsimile signature of the Clerk. Only such Bond as shall bear thereon a Certificate
of Authentication in the form set forth in Exhibit A, manually executed by 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
Bond', so authenticated has been duly executed, authenticated and delivered hereunder
and is entitled to the benefits, of this ordinance.
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In case either of the officers who shall have executed the Bond shall cease to be an
officer or officers of the City before the Bond so signed shall have been authenticated or
delivered by the Bond Registrar, or issued by the City, such Bond may nevertheless be
authenticated, delivered and issued and upon such authentication, delivery and
issuance, shall be as binding upon the City as though those who signed the same had
continued to be such officers of the City. The Bond may also be signed and attested on
behalf of the City by such persons who at the date of the actual execution of the Bond,
are the proper officers of the City,, although at the original date of such Bond any such
person shall not have been such officer of the City.
Section 7. Application of Bond Proceeds. Proceeds of the Bond shall b.-.
distributed as follows:
(a) Refunding Plan. For the purpose of realizing overall debt service savings, the
City proposes to refund and defense the Refunded Bonds as set forth, herein. Proceeds
of the Bond shall be deposited with the Escrow Agent pursuant to the Escrow
Agreement to be used immediately upon receipt thereof to defense the Refunded: Bonds
as authorized by the 201Ordinance and to pay costs of issuance of the Bond.
The proceeds of the Bond deposited with the Escrow Agent shall be used to
defense the Refunded' Bonds and discharge the obligation thereon by either being held
uninvested as cash or by the purchase of Acquired Obligations bearing such interest
and maturing as to principal and interest in Such amounts and at Such times which,
together with any necessary beginning cash balance, will provide for the payment of
interest on the Refunded Bonds on the Call Date and the redemption price of the
Refunded Bonds on the Call Date. Such Acquired Obligations, if any, shall be
purchased at a yield not greater than the yield permitted by the Code and regulations
relating to acquired', obligations in connection with refunding the bond issues,.
(b) Escrow Agent; Escrow Agreement. U.S. Bank National Association is hereby
appointed as Escrow Agent. A beginning cash balance, if any, and the Acquired
Obligations shall be deposited irrevocably with the Escrow Agent in an amount sufficient
to defense and redeem the Refunded Bonds. The proceeds of the Bond remaining after
acquisition of the Acquired Obligations, if any, and provision for the necessary
beginning cash balance shall be used to pay expenses of the acquisition and
safekeepingi of the Acquired Obligations and costs of issuance of the Bond and the
administrative costs of the refunding. In order to carry out the purposes of this section,
the Designated Representative is authorized and directed to execute and deliver this
Escrow Agreement to the Escrow Agent.
(c) Call for Redemption of the 2010 Bonds. The City hereby sets aside available
funds of the City and sufficient funds out of the purchase of the Acquired Obligations
from proceeds of the Bond to make payments described above. The City further calls
the Refunded Bonds for redemption on the Call Date in accordance with the provisions
of the 2010 Ordinance. Said defeasance and call for redemption of the Refunded Bonds
shall be irrevocable after the issuance of the Bond and delivery of cash and/or Acquired
Obligations to the Escrow Agent. The Escrow Agent is hereby authorized and directed
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to provide for the giving of notice of de,feasance and/or redemption of the Refunded
Bonds in accordance with the applicable provisions of the 2010 Ordinance. The Escrow
Agent is hereby authorized and directed to pay to the paying agent for the Refunded
Bonds sums sufficient to pay, when due, the payments specified in this section.
Section 8. Tax Covenants. The City will take all actions necessary to assure the
exclusion of interest on the Bondfrom the gross income of the owners of the Bond 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 Bond, including but not limited to the
following:
(a) Private Activity Bond Limitation. The City will assure that the proceeds of the
Bond are not so used as to cause the Bond 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 Projects. The City will not sell or otherwise
transfer or dispose of: (i) any personal property components of the projects refinanced
with proceeds of the Bond other than in the ordinary course of an established
government program under Treasury Regulation § 1.141-2(d')(4); or (4) any real property
components of the projects, unless it has received an opinion of Bond Counsel to the
effect that such disposition will not adversely affect the treatment of interest on the Bond
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 the Bond 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 Bond.
(e) No Arbitrage. The City will not take, or permit or suffer to be taken, any action
with respect to the proceeds of the Bond 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 Bond would have caused the Bond to be an "arbitrage bond"'
within the meaning of Section 148 of the Code.
(f) Registration Covenant. The City will maintain a system for recording the
ownership of the Bond that complies with the provisions of Section 149 of the Code until
the Bond has been surrendered and canceled.
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(g) Record Retention. The City will retain its records of all accounting and
monitoring it carries out with respect to the Bond for at least three years after the Bond
matures or is redeemed (whichever is earlier); however, if the Bond is 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
Bond.
(h) Compliance with Federal Tax Certificate. The City will comply with the
provisions of any Federal Tax Certificate with respect to the Bond. In the event of any
conflict between this section and the Tax Certificate, the provisions of the Tax
Certificate will prevail.
(i) Bank Qualification. The City hereby designates the Bond for purposes of
paragraph (3) of Section 265(b) of the Code and represents that not more than
$10,000,000 aggregate principal amount of obligations the interest on which is
excludable (under Section 103(a) of the Code) from gross income for federal income tax
purposes (excluding (i) private activity bonds, as defined in Section 141 of the Code,
except qualified 501(c)(3) bonds as defined in Section 145 of the Code, and (ii) current
refunding obligations to the extent the amount of the refunding obligation does not
exceed the outstanding amount of the refunded obligation), has been or will be issued
by the City, including all subordinate entities of the City, during the calendar year 2021.
The covenants of this Section 8 Will Survive payment in full or defeasance of the
Bond.
Section 9. Pledge of Funds and Credit; General Obligation. The City hereby
authorizes the creation of a fund or account to be used for the payment of debt service
on the Bond (the "Debt Service Fund"). No later than the date each payment of
principal of or interest on the Bond becomes due, the City shall transmit sufficient funds,
from the Debt Service Fund or from other legally available sources, to the Registered
Owner for the payment of such principal or interest. Money in the Debt Service Fund
may be invested in legal investments for City funds.
The City hereby irrevocably covenants and agrees for as long as the Bond is
outstanding and unpaid that each year it will 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 other revenues and money of the City legally available
for such purposes, to pay the principal of and interest on the Bond when 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
tax levy permitted to cities without a vote of the people, 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 Bond will be and is hereby irrevocably set aside, pledged
and appropriated for the payment of the principal of and interest on the Bond. The full
faith, credit and resources of the City are hereby irrevocably pledged for the annual levy
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and collection of said taxes and for the prompt payment of the principal of and interest
on the Bond when due.
Section 10. Sale of the Bond. The Council has determined lit would be in the best
interest of the City to delegate to the Designated Representative for a limited time the
authority to approve the final terms of the Bond subject to the provisions of this
ordinance. The Designated Representative has solicited bond purchaser proposals and
is hereby authorized to select the Purchaser that submits the proposal that is in the best
interest of the City. The Bond shall be sold to the Purchaser pursuant to the terms of
the Bond Purchase Contract.
Subject to, the, terms and conditions set forth in this Section 10, the Designated
Representative is hereby authorized to select the Purchaser, to approve the dated date
of the Bond, principal payment dates, interest payment dates, redemption/prepayment
provisions, the Maturity Date, and the Interest Rate for the Bond, to approve and
execute the Bond Purchase Contract, to agree to any additional terms and covenants
that are in the best interest of the City and consistent with this ordinance, and to
execute the sale of the Bond to the Purchaser, provided that:
(a) the principal amount of the Bond does not exceed $2,450,000,
(b) the Maturity Date for the Bond is no later than December 1, 2024,
(c) the Bond is s6ld at a price of not less than 98% of par,
(d) the true interest cost for the Bond does not exceed 2.0%, and
(e) the Bond is sold for a price that results in a minimum aggregate net present
value debt service savings over the Refunded Bonds (calculated by deducting
scheduled federal subsidy payments with respect to the Refunded Bonds from annual
debt service and assuming no future sequestration of such payments) of at least 1 .0%.
Following the sale of the Bond, the Designated Representative shall provide a
report to Council describing the sale and final terms of the Bond approved pursuant to
the authority delegated in this section..
The authority granted to the Designated Representative by this Section 10 shall
expire on August 1, 2020. If the Bond has not been sold by August 1, 2020, the
authorization for the issuance of the Bond shall be rescinded, and the Bond shall not be
issued nor its sale approved unless such Bond shall have been re -authorized by
ordinance of the Council. The ordinance re -authorizing the issuance of the sale of such
Bond 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.
Upon passage and approval of this ordinance, the proper officials of the City
including the Designated Representative, the Mayor, the City Administrator and the City
Clerk are authorized and directed to undertake all action necessary for the prompt
execution and delivery of the Bond to the Purchaser thereof and' further to execute all
closing certificates, agreements, and documents required to effect the closing and
delivery of the Bond in accordance with the terms of the Bond Purchase Contract.
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Section 11,11. Ongoing Disclosure; Covenants., The Bond is exempt from ongoing
disclosure requirements of the Rule.
The City may agree to provide the Purchaser certain financial or other information
and agree, to such, covenants as determined to be necessary by the Designated
Representative and as set forth in the Bond Purchase Contract and approved by the
Designated Representative.
Section 12. Lost, Stolen or Destroyed Bond. In case the Bond shall be lost,
stolen or destroyed while in the Registered Owner's possession, the Bond Registrar
may at the request of the Registered Owner execute and deliver a new Bond of like
date, number and tenor to the Registered Owner thereof upon the Registered Owner's
paying the expenses and charges of the City and the Bond Registrar in connection
therewith and upon its filing with the City written certification that such Bond was
actually lost, stolen or destroyed and of its ownership thereof. In the case the Bond
shall be lost, stolen, or destroyed while in the Registered Owner's possession, the
Registered Owner may elect upon final payment of principal and interest of the Bond to
surrender a photocopy of the Bond for cancellation at the office of the Bond Registrar
together with written certification that such Bond was actually lost, stolen or destroyed
and of its ownership thereof.
Section 13. Severabifity; 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 Bond.
All acts taken pursuant to the authority granted i in this ordinance but prior to its effective
date are hereby ratified and confirmed.
Section 14. 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 cllerlical errors; references to
other local, state or federal laws, codes, rules, or regulations,- ordinance nurnberirlq and
section/subsection numbering; and other similar necessary corrections.
Section 15. 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.
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PASSED BY THE CITY COUNCIL OF THE CITY OF TUKWILA, WASHINGTON, at
a Regular Meeting thereof this this J'day of -(Tup e, 1 2020.
ATTEST/AUTHENTICATED:
Christy O'Flaherty, MMC, City Clerk
.............
Pacifica Law Group, LLP, Bond Counsel
A64-6—b e rg yor
Filed with the City Clerk: 5
Passed by the City Councill:-6
Published:
Effective Date
Ordinance Number: 21(v3G
Attachment- Exhibit A — Form of Bond; Certificate of Authentication and Registration
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Exhibit A
Fr-=. ,M
UNITED STATES OF AMERICA
NO. R-1
STATE OF WASHINGTON
CITY OF TUKWILA
INTEREST RATE:
XA F.1111111 11-0 tra NMI 1W
REGISTERED OWNER:
Zfffkn9jVJ0AL j, W*jN'k4 . JI
g I
The City of Tukwila, Washington, a municipal corporation organized and existing
under and by virtue of the laws of the State of Washington (the "City"), hereby
acknowledges itself to owe and for value received promises to pay to the Registered
Owner identified above, on or before the Maturity Date identified above, the Principal
Amount identified above and to pay interest thereon from the date of delivery, or the
most recent date to which interest has been paid or duly provided for, at the Interest
Rate set forth above (the "Interest Rate"). Interest on this bond shall accrue from its
dated date until paid and shall be computed per annurn on the principal amiouint
outstanding on a 30/360 basis. Principal of and accrued linterest on this bond shall be
payable on the dates set forth in the payment schedule attachedhereto.
Both principal of and interest on this bond shall be payable in lawful money of the
United States of America. Principal and interest on this bond shall be payable by check
or warrant or by other means, mutually acceptable to the Registered Owner and the City.
Ulpon filnal payment of principal and interest of this bond,, the Registered Owner shall
surrender this bond for cancellation at the office of the Bond Registrar in accordance
with Ordinance No. of the City (the "Bond Ordinance").
This bond is issued pursuant to the Bond Ordinance to provide funds to refund
certain outstanding general obligations bonds of the City and to pay costs of issuance.
Capitalized terms used in this bond have the meanlings given such terms in the Bond
Ordinance.
[Prepayment provisions]
This bond [has/has not] been designated by the City as a "qualified tax-exempt
obligation" within the meaning of Section 265(b) of the Internal Revenue Code of 1986,
as amended.
A-1
The City has in the Bond Ordinance authorized the creation of a fund to be used for
the payment of debt service on this bond, designated as the Debt Service Fund. The
Debt Service Fund shall be drawn upon for the sole purpose of paying the principal of
and interest on this bond.
The City hereby irrevocably covenants and agrees with the owner of this bond that
it will include in its annual budget and levy taxes annually, within and as a part of the tax
levy permitted to the City without a vote of the electorate, upon all the property subject
to taxation in amounts sufficient, together with other money legally available therefor, to
pay the principal of and interest on, this bond as the same shall become duie. The full
faith, credit and resources of the City are hereby irrevocably pledged for the annual levy
and collection of such taxes and the prompt payment of such principal and interest.
Owners of this bond do not have a security interest in particular revenues or assets
of the City. This bond is not a debt or indebtedness of the State of Washington, or any
political subdivision thereof other than, the City.
This bond shall not be valid or become obligatory for any purpose or be entitled to
any security or benefit under the Bond Ordinance until the Certificate of Authentication
hereon shall have been manually signed by or on behalf of the Bond Registrar or its
duly designated agent.
This bond, is issued pursuant to the Constitution and laws of the State of
Washington, and dully adopted ordinances of the City. This bond is transferable upon
compliance with the 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, to have happened, been done and
performed precedent to and in the issuance of this bond exist, have happened, been
done and performed and that the issuance of this bond 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 signature of the Mayor of the City of Tukwila
and attested by the manual or facsimile signature of the City Clerk, as of this
day of 1 2020.
fSEAL]
F-ITA a 9 ;6019
Christy O'Flaherty, MIVIC, City Clerk
A-2
CITY OF TUKWILA, WASHINGTON
By
Allan Ekberg, Mayor
CERTIFICATE OF AUTHENTICATION AND REGISTRATION
This bond is the City of Tukwila, Limited Tax General Obligation Refunding Bond,
2020, described in the within mentioned Bond Ordinance and is registered in the name
of the Registered Owner on the books of the City, in the office of the City Finance
Director (the "Bond Registrar"), as to both principal and interest, as, noted in the
registration blank below. All payments of principal of and interest on this bond shall be
made by the City to the Registered Owner from the Debt Service Fund.
Date of
NW
Name and Address of Signature of
Registered Owner Bond Registrar
A-3
Finance Director
Barbara Saxton
From: Christy O'Flaherty
Sent: Monday, June 8, 2020 10:32 AM
To: Kari Sand
Cc: Barbara Saxton; Ana Le; Andy Youn; Felipe Ayala; Vicky Carlsen
Subject: RE: Bond Counsel has approved correction of Scrivener's error for 2630
Ok, we will get this done today!
From: Kari Sand <Kari.Sand@TukwilaWA.gov>
Sent: Monday, June 8, 2020 10:31 AM
To: Christy O'Flaherty <Christy.OFlaherty@TukwilaWA.gov>
Subject: RE: Bond Counsel has approved correction of Scrivener's error for 2630
Hi, Christy — Yes, I agree that stray text should be removed as a scrivener's error.
Thank you,
-Karl
From: Christy O'Flaherty<Christy.OFla herty@TukwilaWA.gov>
Sent: Monday, June 8, 2020 10:29 AM
To: Kari Sand <Kari.Sand@TukwilaWA.gov>
Subject: Bond Counsel has approved correction of Scrivener's error for 2630
Hi Kari. FYI M. Just need your weigh in when you have a chance. Thanks!
Christy
From: Vicky Carlsen <Vicky.Carlsen@TukwilaWA.gov>
Sent: Monday, June 8, 2020 10:26 AM
To: Christy O'Flaherty <Christy.OFlaherty@TukwilaWA.gov>; Barbara Saxton <Barbara.Saxton@TukwilaWA.gov>; Andy
Youn <Andy.Youn@TukwilaWA.gov>; Felipe Ayala <Felipe.Ayala@TukwilaWA.gov>
Subject: FW: Error in Ordinance 2630
FYI — per Deanna.
Vicky
From: Deanna Gregory <Deanna.Gregory@pacificalawgroup.com>
Sent: Monday, June 8, 2020 10:20 AM
To: Vicky Carlsen <Vicky.Carlsen@TukwilaWA.gov>
Subject: RE: Error in Ordinance 2630
Looks like hidden text for the table of contents. So strange! Thanks so much!
From: Vicky Carlsen <Vicky.Carlsen@TukwilaWA.gov>
Sent: Monday, June 8, 2020 10:04 AM
To: Deanna Gregory <Deanna.Gregory@pacificalawgroup.com>
Subject: FW: Error in Ordinance 2630
Importance: High
Hi Deanna,
Not sure what happened, but it looks like something went a little whacky with the bond ordinance. Please see email
string below. The copy I had the following:
NOW. Tiff.REFORE. THE CITY COUNCIL. OF THE CITY OF TL'G.%r1LA.
WASHINGTON. HEREBY ORDAINS AS FOLLOWS.
Section 1. Defntitioas and Interpretation of Terms.
(a) lagjrnrrron:. As used in dus ordinance. 'dx fottoaing xwcds chap bx:c the
follo%%utg tneaausAs:
Acquired OWWaciom mean the Go%cratnent ObIsg4tscm acgtwed by the City trader the
._.....-4?.c.._-A A— L-. A..._.... _...... _rr_,.. .1._ A-6 --A._f....A:..-
Please confirm that you're ok with this being a scrivener's error that the Clerk's office can correct.
Thanks. Vicky
It looks like the Entire phrase of = needs to go. Looks like there may have been a
character in the document that pointed to a bookmark that did not exist that pushed in that
language. Fortunately, we have a Scrivener's Error process that can be used to correct this without it going
back to Council, per Section 14 of the Ordinance. However, it requires City Attorney and Bond Counsel
Approval.
Ord. 2630 (see Page 2 under the NOW THEREFORE
clause): http://records.tukwilawa.gov/weblink/l/doc/330709/Pagel.aspx
Vicky, I am looping you in on this as it may be a factor if the Ordinance has already been used as "artf your
process. Will you please reach out to Bond Counsel and get their approval to remove the aboveand
forward me the email.
Kari, I am also looping you in if we could get your approval. Please note our process means documenting
each Scrivener's error via log and retaining the email explanations. Here is an example of a copy and paste of
2 entries from our log. Upon removal, we will remove the phrase and re -upload the affected page to the DRC.
Christy
Scrivener's Error Log
Ord. #
Correction needed
Page # in
Date
Comments/
ordinance
changed
Codifier Notes
Resol.
Community Services and Safety Committee
page 2
1/7/2020
Section 2.,
1982
written as Community Service_ and Safety
subparagraph 4.
Committee.
2581
The ordinance had a reference to "the
Page 16
7/9/18
Section 12.
effective date of Ordinance No.
which was meant to refer to this ordinance
(No. 2581), but was incorrectly written as
Ordinance No. 2580.
From: Ana Le <Ana.Le@TukwilaWA.gov>
Sent: Monday, June 8, 2020 9:37 AM
To: Christy O'Flaherty <Christy.OFla herty@TukwilaWA.gov>; Andy Youn <Andy.Youn@TukwilaWA.gov>; Barbara Saxton
<Barbara.Saxton@TukwilaWA.gov>
Cc: Felipe Ayala <Felipe.Ayala@TukwilaWA.Rov>
Subject: RE: UPDATE: Ordinance 2629 & 2630
I noticed the word "Error!" on the 2"d page of Ord 2630 regarding LTGO Refunding Bond.
NOW, THEREFORE, THE CITY COUNCIL OF THE CITY OF TUKWILA,
WASHINGTON, HEREBY ORDAINS AS FOLLOWS:
Section 1. Definitions and Interpretation of TermsError: Bookmark not defined .
(a) Definitions. As used in this ordinance. the following words shall have the
following meanings -
From: Felipe Ayala <Felipe.Ayala@TukwilaWA.kov>
Sent: Friday, June 5, 2020 12:16 PM
To: Christy O'Flaherty <Christy.OFlaherty@TukwilaWA.gov>; Ana Le <Ana.Le@TukwilaWA.gov>
Cc: Andy Youn <Andy.Youn@TukwilaWA.gov>; Barbara Saxton <Barbara.Saxton@TukwilaWA.gov>
Subject: UPDATE: Ordinance 2629 & 2630
The following ordinances have been signed and uploaded to the S: Drive:
• Ordinance No. 2629 relating to the use of bags at retail establishments
• Ordinance No. 2630 authorizing the issuance and sale of $2,450,000 Limited Tax General Obligation Refunding
Bond
Thanks,
Felipe Ayala
Administrative Support Coordinator
City Clerk's Office
City of Tukwila
Ph: 206-433-1800
•
The City of opportunity, the community of choice.
**My incoming and outgoing email messages are subject to public disclosure requirements per RCW 42.56 **
CAUTION: This email originated from outside the City of Tukwila network. Please DO NOT open attachments or click
links from an unknown or suspicious origin.
On June 1, 2020 the City Council of the City of Tukwila, Washington, adopted the
following ordinances, the main points of which are summarized by title as follows:
r r !"■ • •
. '" r is r � ' M :! ■ � .�, .,
� i 1, '' i ►� � • �r i :�
The full text of this ordinance will be provided capon request.
Christy C'Flaherty, MMC, City Clerk
Published Seattle Times: June 4, 2020