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HomeMy WebLinkAboutReg 2013-03-18 Item 3C - Interlocal Agreement - Amendment to Long-Term General Obligation Bonds with Tukwila Metropolitan Park DistrictCOUNCIL AGENDA SYNOPSIS Initials Meeting Date 03/18/13 Council review Prepared by M r s review CZ /90 ITEM INFORMATION ITEM No. 3.C. CAS NUMBER: STAFF SPONSOR: CRAIG ZELLERHOFF ORIGINAL AGENDA DATE: 03/18/13 AGENDA ITEM TITLE Amend Agreement Interlocal Agreement #12 -008 for the Tukwila Metropolitan Park District and # 12 -143 for the City of Tukwila. CATEGORY ❑ Discussion Mtg Date Motion Date 3/18/13 ❑ Resolution Mtg Date ❑ Ordinance Mtg Date ❑ Bid Award Mtg Date ❑ Public Hearing Mtg Date ❑ Other Mtg Date I1 Mtg SPONSOR ❑ Council ❑ Mayor ❑ HR ❑ IT ❑ P &R ❑ Police ❑ PW ❑ DCD I Finance ❑ Fire SPONSOR'S This is a request to amend the Interlocal Agreement for issuance of Long Term General SUMMARY Obligation Bonds in 2013 rather than 2012 due to market timing. The bonds are for the capital financing project at the Tukwila Pool. The Committee is being asked to forward this item to the March 18, 2013 Consent Agenda. The MPD Board will be asked to consider this item at their meeting on March 18, 2013 as well. REVIEWED BY ❑ COW Mtg. ❑ CA &P Cmte ❑ Utilities Cmte ❑ Arts Comm. DATE: 03/05/13 ►1 F &S Cmte ❑ Transportation Cmte Comm. ❑ Planning Comm. CHAIR: ROBERTSON ❑ Parks COMMITTEE RECOMMENDATIONS: SPONSOR /ADMIN. COMMITTEE Finance Unanimous Approval; Forward to Consent Agenda COST IMPACT/ FUND SOURCE EXPENDITURE REQUIRED AMOUNT BUDGETED APPROPRIATION REQUIRED $N /A $N /A $N /A Fund Source: Comments: MTG. DATE RECORD OF COUNCIL ACTION 03/18/13 MTG. DATE ATTACHMENTS 03/18/13 Informational Memorandum dated 02/27/13 Amended Interlocal Agreement with attachment B -2 Minutes from the Finance and Safety Committee meeting of 3/5/13 1 2 TO: City of Tukwila Jim Haggerton, Mayor INFORMATIONAL MEMORANDUM Mayor Haggerton Finance and Safety Committee FROM: Peggy McCarthy, Finance Director BY: Craig Zellerhoff, Fiscal Coordinator Payroll and Accounts Payable DATE: February 22, 2013 SUBJECT: Amend Interlocal Agreement with Metropolitan Park District (MPD) ISSUE Amend Interlocal Agreement for issuance of Long Term General Obligation Bonds in 2013 rather than 2012 due to market timing. The bonds are for financing the capital project at the Tukwila Pool. DISCUSSION This is a revision to the original Interlocal Agreement to correlate the verbiage in regards to the issuance of the Bonds and amount in 2013. The original agreement was for an open market sale with a 15 year repayment schedule and has been replaced with a private placement with Cashmere Bank and a 10 year repayment schedule. The agreement has been amended as follows: Section 1.7: The original amount stated in this section was not to exceed $1,100,000. This amount has been reduced to $1,000,000. Additionally, the Ordinance number has been updated to reflect the Ordinance authorizing the new amount for the Bonds. Section 2: Ordinance number and the year of the Bond sale have been updated to reflect current information. Exhibit B: The 15 year repayment schedule was incorporated in this Exhibit and has been deleted and replaced with Exhibit B -2 reflecting a 10 year repayment schedule. RECOMMENDATION The Committee is being asked to forward this item to the March 18, 2013 Consent Agenda. The MPD Board will be asked to consider this item at their meeting on March 18, 2013 as well. ATTACHMENTS Amended Interlocal Agreement 3 4 City of Tukwila 6200 Southcenter Boulevard, Tukwila WA 98188 Agreement Number: INTERLOCAL AGREEMENT Amendment # 1 to Interlocal Agreement #12 -008 for the Tukwila Metropolitan Park District and Agreement # 12 -143 for the City of Tukwila That portion of the Interlocal Agreement between the City of Tukwila and the Tukwila Metropolitan Park District is amended as follows: Section 1.7 is amended to read as follows: The Tukwila City Council has adopted Ordinance No. 2394 authorizing the issuance of not to exceed $1,000,000 Limited Tax General Obligation Bonds, 2013 and the execution of this Agreement to provide for the financing of the Pool Improvement Project. Section 2 is amended to read as follows: For purposes of this Agreement, the following words shall have the following meanings, unless another meaning is clearly intended. Capitalized terms not defined below shall have the meanings given in the Bond Ordinance. "Agreement" means this Interlocal Agreement for the funding of the Tukwila Pool Improvement Project, entered into by and between the City and TMPD under the authority of RCW 35.61.290 and 67.20.010. "Bond Counsel" means a firm of nationally recognized Bond Counsel selected by the City. "Bond Ordinance" means Ordinance No. 2394 of the City of Tukwila authorizing issuance of the City's Limited Tax General Obligation Bonds, 2013 (Pool Improvement Project). "Business Day" means any day that is not a Saturday, Sunday, holiday or other day on which commercial banking institutions in Washington state are authorized or obligated by law or executive order to be closed. "City" means the City of Tukwila, Washington. "Code" means the Internal Revenue Code of 1986, as amended, together with all administrative rulings and regulations promulgated or issued thereunder. "Debt Service Payment" means any payment of principal or interest (or both) with respect to Pool Improvement Project Bonds plus any premium, prepayment penalty, credit enhancement, remarketing or similar fee coming due and payable on any principal or interest payment date and not paid on issuance of the bonds. CA: 2012 Page 1 of 2 5 "Gross TMPD Revenues" means all taxes, fees, charges and other revenues received by TMPD from any source whatsoever. "Pool Improvement Project" or "Project" means the Tukwila Pool Improvement Project described in Exhibit A and incorporated by this reference. "Pool Improvement Project Bonds" the City's Limited Tax General Obligation Bonds, 2012, authorized by the Bond Ordinance. "Parties" means the City and TMPD. "Tukwila Metropolitan Park District" or "TMPD" means The Tukwila Metropolitan Park District, a municipal corporation created pursuant to chapter 36.120 RCW and a vote of the people held on August 16, 2011. "TMPD Board' means the governing board of TMPD. "TMPD Payment" means one or more payments made by TMPD under this Agreement to fund the City. Exhibit B is amended as follows: Exhibit B to the Interlocal Agreement is deleted and hereby replaced with Exhibit B -2. Exhibit B -2 is fully incorporated for all purposes of this Agreement. All other provisions of the contract shall remain in full force and effect. Dated this day of , 20 CITY OF TUKWILA TUKWILA METROPOLITAN PARK DISTRICT Jim Haggerton, Mayor Verna Seal, Board President APPROVED AS TO FORM APPROVED AS TO FORM Shelley M. Kerslake, Lisa M. Marshall, City Attorney Commission Attorney 6 City of Tukwila Cashmere LTGO Bond Amortization Schedule EXHIBIT B -2 PAYMENT PERIOD BEGINNING PRINCIPAL INTEREST RATE INTEREST ENDING CASH FLOW 2/1/2013 1,000,000.00 1,000,000.00 6/1/2013 1,000,000.00 (50,731.67) 0.02 (5,833.33) 949,268.33 (56,565.00) 12/1/2013 949,268.33 (48,258.90) 0.02 (8,306.10) 901,009.43 (56,565.00) 6/1/2014 901,009.43 (48,681.17) 0.02 (7,883.83) 852,328.26 (56,565.00) 12/1/2014 852,328.26 (49,107.13) 0.02 (7,457.87) 803,221.13 (56,565.00) 6/1/2015 803,221.13 (49,536.82) 0.02 (7,028.18) 753,684.31 (56,565.00) 12/1/2015 753,684.31 (49,970.26) 0.02 (6,594.74) 703,714.05 (56,565.00) 6/1/2016 703,714.05 (46,537.07) 0.03 (10,027.93) 657,176.98 (56,565.00) 12/1/2016 657,176.98 (47,200.23) 0.03 (9,364.77) 609,976.75 (56,565.00) 6/1/2017 609,976.75 (47,872.83) 0.03 (8,692.17) 562,103.92 (56,565.00) 12/1/2017 562,103.92 (48,555.02) 0.03 (8,009.98) 513,548.90 (56,565.00) 6/1/2018 513,548.90 (49,246.93) 0.03 (7,318.07) 464,301.97 (56,565.00) 12/1/2018 464,301.97 (49,948.70) 0.03 (6,616.30) 414,353.27 (56,565.00) 6/1/2019 414,353.27 (48,277.93) 0.04 (8,287.07) 366,075.34 (56,565.00) 12/1/2019 366,075.34 (49,243.49) 0.04 (7,321.51) 316,831.85 (56,565.00) 6/1/2020 316,831.85 (50,228.36) 0.04 (6,336.64) 266,603.49 (56,565.00) 12/1/2020 266,603.49 (51,232.93) 0.04 (5,332.07) 215,370.56 (56,565.00) 6/1/2021 215,370.56 (52,257.59) 0.04 (4,307.41) 163,112.97 (56,565.00) 12/1/2021 163,112.97 (53,302.74) 0.04 (3,262.26) 109,810.23 (56,565.00) 6/1/2022 109,810.23 (54,368.80) 0.04 (2,196.20) 55,441.43 (56,565.00) 12/1/2022 55,441.43 (55,441.43) 0.04 (1,108.83) 0.00 (56,550.26) (131,285.26) 7 8 Finance & Safety Committee Minutes March 5, 2013 — Page 2 B. Interlocal Agreement: Valley SWAT Staff is seeking Council approval of a template of an Interlocal Agreement for Services to Non - Participating Agencies between member cities of Valley Special Weapons and Tactics (SWAT) and non- participating agencies to be named at a later time. The intent of the agreement(s) is to establish the responsibilities and liabilities of non - member entities that utilize the services of Valley SWAT in a mutual aid situation. Current Valley SWAT member cities are: Auburn, Federal Way, Kent, Renton, Tukwila, and Port of Seattle. Staff commented that the template agreement was created and review by City Counsels from Renton and Tukwila. UNANIMOUS APPROVAL FORWARD TO MARCH 11 COW FOR DISCUSSION. C. Interlocal Agreement Amendment: Metropolitan Park District General Obligation Bonds Staff is seeking Council approval of an amendment to the interlocal agreement with the Metropolitan Park District in regards to general obligation bonds that financed the recent capital project at the Pool. The amendment reflects changes that are essentially housekeeping in nature: • Section 1.7 — Changes original amount of $1,100,000 to $1,000,000 • Section 2 — Updates ordinance number and year of bond sale • Exhibit B — Replaces original 15 -year repayment schedule with 10 -year repayment schedule Committee Members were complimentary of the how concisely the information was presented regarding the amendment. UNANIMOUS APPROVAL. FORWARD TO MARCH 18 CONSENT AGENDA. III. MISCELLANEOUS Meeting adjourned at 6:18 p.m. Next meeting: Tuesday, March 19, 2013 — 5:30 p.m. — Conference Room #3 Committee Chair Approval Minutes bt% KAM. 9