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Home My WebLink AboutCOW 2003-09-08 COMPLETE AGENDA PACKETTukwila City Council Agenda 0 Steven M. Mullet, Mayor Councilmembers: Joe Duffie Dave Fenton o Rhonda Berry, Acting City Administrator Jim Haggerton Joan Hernandez 2 Pam Carter, Council President Pamela Linder Richard Simpson COMMITTEE OF THE WHOLE Monday, September 8, 2003; 7 PM Tukwila City Hall; Council Chambers 1. CALL TO ORDER PLEDGE OF ALLEGIANCE 2. SPECIAL Tukwila Demographics /Comprehensive Plan Update pg. 3 PRESENTATION (Growth Management Act) Rebecca Fox, Senior Planner, Dept. of Community Development 3. CITIZEN COMMENT/ At this time, you are invited to comment on items not included on CORRESPONDENCE this agenda. To comment on an item listed on this agenda, please save your comments until the issue is presented for discussion. 4. SPECIAL ISSUES a. 2004 Community Development Block Grant (CDBG) projects p 29 and funding. b. An ordinance relating to contracting indebtedness; providing p 37 for the issuance of limited tax general obligation bonds re: Foster Golf Course Clubhouse. c. Authorize Mayor to sign a Bond Purchase Contract between P 51 Lehman Brothers, Inc. and the City of Tukwila, for $9,850,000 Limited Tax General Obligation Bonds, Series 2003A; and $2,200,000 Limited Tax General Obligation Bonds Series 2003T (taxable). 5. REPORTS a. Mayor c. Staff e. Intergovernmental b. City Council d. City Attorney 6. MISCELLANEOUS 7. EXECUTIVE SESSION 8. ADJOURN TO SPECIAL MEETING SPECIAL MEETING Ord #2027 Res #1532 1. CALL TO ORDER/ROLL CALL 2. UNFINISHED a. An ordinance relating to contracting indebtedness; providing for the BUSINESS issuance of limited tax general obligation bonds re: Foster Golf Course Clubhouse (see item 4.b. above). b. Authorize Mayor to sign a Bond Purchase Contract between Lehman Brothers, Inc. and the City of Tukwila, for $9,850,000 Limited Tax General Obligation Bonds, Series 2003A; and $2,200,000 Limited Tax General Obligation Bonds Series 2003T (taxable) (see item 4.c. above). 3. ADJOURNMENT Tukwila City Hall is wheelchair accessible. Reasonable accommodations are available at public hearings with advance notice by calling the City Clerks office 206- 433 1800 /TDD 206 248 -2933. This notice is available in alternate formats for those with disabilities with advance notice and is also available at http: /www.ci.tukwila.wa.us. Tukwila Council meetings are audio taped. CAS Number: 03-110 (Ref. 03 -029) Agenda Item Title: Comprehensive Plan technical revision briefing /Tukwila Demographics Original Sponsor: Council Admin.xx I Timeline: Sponsor's Summary: Staff will introduce the upcoming Comprehensive Plan update /GMA technical revisions with a presentation on recent changes in Tukwila's population characteristics, and highlights of the Comprehensive Plan and Vision Tukwila. Recommendations: Sponsor: Committee: Forward to COW Administration: Forward to COW I Cost Impact (if known): None I Fund Source (if ]mown): (n/a) Meeting Date I Meeting Date 9/8/03 COUNCIL AGENDA SYNOPSIS Initials Meeting Date I Prepared frt, 1 Mayor's review 1 Council review 9/8/03 I Rf I�� I �'a I I I 1 1 I ITEM INFORMATION Original Agenda Date 3/03/03 RECORD OF COUNCIL ACTION Action APPENDICES Attachments Memo from Steve Lancaster, dated 9/2/03 1. Tukwila Profile 2. Selected Census Data ITEM No. i City°fTukwila StevenM. Mullet, Mayor ......................... Department of Coramungty Development Steve Lancaster, Director MEMORANDUM September 2, 2003 TO: Tukwila City coUncil FROM: Steve Lancaster, Department of CommuniF~Development SUBJECT: COMPREHENSIVE PLAN BRIEFING During the next year, staff will revise the Comprehensive Plan to make it consistent with changes that have been made in the Washington Growth Management Act (GMA). To begin this process, staff will brief the City Council on Tuk-wila's demographic characteristics, highlights of the Comprehensive Plan, results of Vision Tukwila and the GMA-related revisions that are required by the State. Due to staffing and budget limitations, the Comprehensive Plan update will be tightly focused on technical revisions to specific topics required by changes in the Washington State Growth Management Act (GMA). Work on the GMA technical revisions will be limited mainly to: 1) updating the Sensitive Areas Ordinance to include a review of latest scientific findings (''best available science") and consideration of anadromons fish, and; 2) updating information, policies and codes to incorporate new targets for growth in households and in employment. As needed, other topics will be included. The revisions will be completed by December 1, 2004. Enclosed with this memo is a summary Profile of Tukwila as well as a booklet of selected data from the 2000 Census. This information, along with a briefing, provides information which gives a sense of how much change and growth is occurring in the city. This provides a basis for the Technical Update to the Comprehensive Plan. 6300 Southcenter Boulevard, Suite #100 · Tukwlla, Washington 98188 · Phone: 206-431-3670 · Fax: 206-431-366~ Statistical Profile on: TUKWILA DEMOGRAPHIC POPIA ATION Population Gras/0, 1980.190: Population Growth. 1990.200: Households, 2000 Census 7,186 Average FPlld Sze, 2000 Census 238 Mid Growth Target Range 19924012: 4,761 6,014 270 Census Aga Structure: 17 at under 18 -64 65 and over 200 Census Race and Ethnic Cateocries Non4ispaic4Mite Dark a AMcanAmedcac Asian and Paific Islander. Naive American and other: Hspaic or Latino': Two a mare rra HOUSING 2000 Total housing Unit Cant "SngeFatty 4318 Mlgfanly 4,499 1990Cmsie Medan Housevalue 2000 Medan House Sales Price Census i 1980 I 1990 I 2000 2002 3,578 I 11,874 17,181 17,270 232'/4 45% 4,124 24% 11,712 68% 1,345 8% 9,297 54% 2,174 13% 2,169 13% 247 1% 2,329 14% 965 6% 7,817 44% x,% van $1x410 2001 Total New Residential Units: "5 Mffiaray 2000 Number of Business Units! 1,584 Median Household Income: 1989(1990 Census): $70,141 1999 (200 Census):$40,718 Households by Income Catenory, 4999: 0 50% 1,999 28% 50 -80% 1,689 24% 80 -120% 1,591 22% 120%• 1,889 26% 1990: 5639 1990: 20 54 2000Fmrd Rats: 54 Pppfrlons 0 Recordings 2000Tatal Jobs Manufacturing Retai8N11oleste/Ulilities Finance /Services Government/Education AFFM/ConsWc6on Major Businesses and Emolovers: Tukwila Warehousing Red Doi Caporalon United Parcel Service 1990 17 and under 18 -64 65 and ova 1990 Na-lispanicMite 9,830 Black or Ahicen Medan: 755 Asian and Pacific Mader 880 NSiveMnlaican and Odle: 10 HSpa is a LAW': 436 Two mere race 219 1990 Tate Housing Unit Cast 1,X6 "Srye Fanly 3,141 43% Manly 4,165 576 1990 Cauue Maim 2.6drls Rental: $433 2000 Medan Mint Renal: t633 /Bats 0 1 47,824 13,279 18,332 12,372 1,987 1,854 Bon Marche Kenworth Trucking NC Machinery 2,255 19% 4591 72% 1,028 9% Attachment 1 Boeing Nordstrom METRO 83% 7% 2% 4% 2% Mote xACme 0 000 16 114 1990 Total Jobs Manufacturing RelalANnolesaleN61ites Finance /Services GovernmenUEdxafion AFFWConnructon Sources: 1990 Census of Population and Housing; 2000 Census of Population and Housing; Puget Sound Regional Council /oily of jobs covered by state unemployment insurance; from WA Stale Employmnet Security Department. The Cily of Tukwila. The Economic Development Council of Seattle and King County. Suburban Cities Assoc, of King County, Washington. Persons of Hispanic Origin can be of any race. ^Single Family includes mobile homes. 34,628 17,908 10,696 4,106 855 1,063 Attachment 2 City of Tukwila Selected 2000 Census Data: General Population, Housing, and Income Prepared by the City Of Tukwila Department of Community Development September 2003 Table of Contents Page Population: · Number of Persons ................................................................. 1 · Number of Households ............................................................ 2 · Number of Persons Living in Group Homes .................................... 2 · Population by Age Group ......................................................... 3 · Population by Select Age Groups ................................................ 4 · Total School Age .................................................................. :.5 · Households by Type as a Percent of Total Households .......................6 · Households with Children ......................................................... 7 · Population by Race ................................................................. 8 · English Fluency ..................................................................... 9 Housing: · Renter and Owner Occupied Housing ........................................... 10 · Single and Multi-Family Occupied Housing ................................... 11 · Median Housing Costs ............................................................ 12 · Vacancy Rates ...................................................................... 12 · Householder by Race or Ethnic Group as a Percent of Total .................13 · Age of Householder (in Years) ................................................... 14 · Household and Family Income ................................................... 15 Income: · Low and Very Low Income Households as a Percent of Total .............. 16 · Household Income ................................................................. 17 Education: · Educational Attainment ........................................................... 18 · Educational Attainment as a Percent of Total Persons 25+ Years Old ..... 18 · School Enrollment ................................................................. 19 · Persons by School Enrollment as a Percent of Total Persons (3+ Years)..20 Note: All data contained in the in this book was collected from the 1990 and 2000 US Census of Population. This document was prepared by Aubin Phillips, Intem, City of Tukwila Department of Community Development and Planning, 6300 Southcenter Blvd, Tukwila, WA NUMBER OF PERSONS: 1990 vs. 2000 Actual Percent % Total 1990 2000 Change Change 2000 Total: 11,874 17,181 5,309 45% 100% · Male 6,163 8,971 2,808 46% 52% · Female 5,711 8,210 2,499 44% 48% Actual Change (bar graph) and Percent Change (line graph) in Population and Households: 1990 vs. 2000 15,000 46% 10,000 46% 5,000 44% 0 43% Total Persons Male Female City Of Tukwila: Page 1 09/02/03 Selected 2000 Census Data NUMBER OF HOUSEHOLDS: 1990 vs. 2000 Actual Percent 1990 2000 Change Change Total: 5,639 7,186 1,547 27% · Family Households 2,784 3,952 1,168 42% · Non-family Households 2,855 3,234 379 14% Actual Change (bar graph) and Percent Change (line graph) in Households:1990-2000 8,000 / / 50% 6,000 1- t 40% ~ ± 30% 4,000 1- -t- 20% 1[]2000 2,000 1- ± 10% O/ ', 0% Total Family Non-Family Households Households *A family household includes a householder and one or more people living in the same household who are related to the householder by birth, marriage or adoption. *A non-family household may comprise a group of unrelated people, or a person living alone. NUMBER OF PERSONS LIVING IN GROUP HOMES: 1990 vs. 2000 Actual Percent 1990 2000 Change Change Total: 61 97 36 59% · Institutionalized 0 70 70 100% · Other 61 22 -39 -64% City Of Tukwila: Page 2 09/02/03 Selected 2000 Census Data POPULATION BY AGE GROUP: 1990 vs. 2000 Actual Percent % of Total 1990 2000 Change Change 2000 Total Persons: 11,874 17,181 5,309 45% 100% · 0-4 years old 772 1,233 461 60% 7% 2,206 · 5-14 2,963 1,709 58% 27% · 15-24 2,466 3,148 · 25-34 4,838 1,571 33% 37% · 35-44 3,261 · 45-54 1,300 2,261 961 74% 13% · 55-64 973 1,264 291 30% 7% · 65-74 702 726 24 3% 4% · 75-84 267 485 218 82% 3% · 85+ 59 134 75 127% 1% *Age categories in 1990 are broader than in 2000, so groups are not broken down into the same 10-year age cohorts. Number of Persons by Age Group:1990 vs. 2000 7000 --O-1990 6000 ~ 5000 '-11--2000 4000 3000 2000 1000 0-4 5-24 25-44 45-54 55-64 65-74 75-84 85+ City Of Tukwila: Page 3 09/02/03 Selected 2000 Census Data POPULATION BY SELECT AGE GROUPS: 1990 vs. 2000 Actual Percent Percent of Percent of 1990 2000 Change Change Total- 1990 Total-2000 Total: 11,874 17,181 5,307 45% 100% 100% Youth (<18) 2,255 4,124 1,869 83% 19% 24% Adult (18-64) 8,591 11,712 3,121 36% 72% 68% Senior (65+) 1,028 1,345 317 31% 9% 8% Percent of Population in Percent of Population in Select Age Groups: 1990 Select Age Groups: 2000 9% 19% 8% 24% 72% 68% [ElYouth (<18) llAdult (18-64) mSenior (65+)I ["nYouth (<18) 1Adult (18-64) mSenior (65+)1 City Of Tukwila: Page 4 09/02/03 Selected 2000 Census Data TOTAL SCHOOL AGE: 1990 vs. 2000: 1990 2000 Actual Percent Percent of Percent of Change Change Total-1990 Total-2000 Total School Age: 2,418 4,147 1,729 72% 20% 24% · Preschool/Kindergarten 235 506 271 115% 2% 3% · Grade School (1-8) 1,834 11% · High School(9-12) 1,289 882 1,427 111% 11% 5% · College/Grad School 894 925 31 4% 8% 5% I Actual Change (bar graph) and Percent Change (line graph) of Total School Age:1990-2000 5,000 4,000 [] 1990 3,000 [] 2000 2,000 1,000 0 City Of Tukwila: Page 5 09/02/03 Selected 2000 Census Data HOUSEHOLDS BY TYPE AS A PERCENT OF TOTAL HOUSEHOLDS: 1990 vs. 2000 Actual Percent % of Total: % of Total: 1990 2000 Change Change 1990 2000 Total: 5,639 7,186 1547 27% 100% 100% · Family Households 2,784 3,952 1168 42% 49% 55% -Married Couple 2,026 2,616 590 29% 36% 36% -Other (Single Parent) 758 1,336 578 76% 13% 19% · Non-Family Household 2,855 3,234 379 13% 51% 45% -Living Alone 2,197 2,468 271 12% 39% 34% -Not Living Alone 658 766 108 16% 12% 11% *A family household includes a householder and one or more people living in the same household who are related to the householder by birth, marriage or adoption. *A non-family household may comprise of a group of unrelated people, or a person living alone. Percent of Total Households: Percent of Total Households: 1990 2000 45% ~1% 19% 13% City Of Tukwila: Page 6 09/02/03 Selected 2000 Census Data HOUSEHOLDS WITH CHILDREN: 1990 vs. 2000 Actual Percent 1990 2000 Change Change Total Families: 2,784 3,952 1,168 42% · Married Couples 2,026 2,616 590 29% · Single Parents 758 1,336 578 76% -Female Householder 523 894 371 71% -Male Householder 235 442 207 88% *A family household includes a householder and one or more people living in the same household who are related to the householder by birth, marriage or adoption. Number of Families With Children by Type: 1990 vs. 2000 0 1,000 2,000 3,000 4,000 Total ~,~ I I Married Couples ........... Single Parents ~ ~1990 Householder ~ El2000 Male Householder' ~ Actual Change (bar graph) and Percent Change (line graph) in Number of Families by Type: 1990-2000 100% 3,000 60% [] 1990 2,000 40% E32000 '1,000 20% 0 ..... 0% Total Married Single Female Male Couples Parents HouseholderHouseholder City Of Tukwila: Page 7 09/02/03 Selected 2000 Census Data POPULATION BY RACE: 1990 vs. 2000 Actual Percent % of Total: % of Total: 1990 2000 Change Change 1990 2000 White, Non-Hispanic 9,830 10,074 244 3% 83% 59% Hispanic/Latino 436 2,329 1,893 435% 4% 14% Black/African American 755 2,198 1,443 191% 6% 13% Asian & Pacific Islander 880 2,182 1,302 148% 7% 13% Native American 190 223 33 17% 2% 1% Other 219 1,385 1,166 532% 2% 8% *Percentage totals do not match population totals due to the census report changing race/ethnic group categories from 1990 to 2000. Respondents may have identified two or more group categories. Actual Change (bar graph) and Percent Change (line graph) in Total Persons by Race: t990-2000 2,000 0,000 8,000 6,000 4,000 2,000 0 W~ite, Non- Hispanlc/Lafino Blac~dAffican Asian&Pacific Native Ame~can Ot~er City Of Tukwila: Page 8 09/02/03 Selected 2000 Census Data ENGLISH FLUENCY IN 2000: ~ Tu~i~a Census T~s by Census Tract Percent of Total Population That Percent of Total Population That Speaks a Language Other than Speaks English Less Than "Very English at Home Well" Census Tract: 262 24.8% 9.8% 263 30.1% 17.3% 264 31.5% 19.6% 271 25.1% 13% 272 32.3% 19.5% 273 37.4% 21.4% 281 46.6% 28.8% 282 33.9% 20% 283 19.1% 8.9% ENGLISH FLUENCY: 1990 vs. 2000 Actual Percent 1990 2000 Change Change % in 1990 % in 2000 Total Population: 11,874 17,181 5,309 45% 100 100% · Population that speaks a language other than 1,119 5,498 4,379 391% 9% 32% English at home · Population that speaks English less than "very 362 2,921 2,559 707% 3% 17% well" City Of Tukwila: Page 9 09/02/03 Selected 2000 Census Data RENTER AND OWNER OCCUPIED HOUSING: 1990 vs. 2000 Actual Percent % in % in 1990 2000 Change Change 1990 2000 Total: 5,972 7,817 1,846 31% 100% 100% · Renter Occupied 3,422 4,141 719 21% 57% 53% · Owner Occupied 2,217 3,045 828 37% 37% 39% · A renter occupied housing unit is a unit that is not owner occupied, whether it is rented for cash rent or without payment of cash rent. · A housing unit is owner occupied if an owner or co-owner occupies it, even if it is mortgaged or not fully paid for. Number of Occupied Units: 1990 vs. 2000 0 2,000 4,000 6,000 6,000 I Total ~ Ei1990 l 12000 I Actual (bar graph) and Percent (line graph) Change of Occupied Housing Units: 1990-2000 10,000 40% 8,000 · 30% 6,000 ' 20% 4,000 2,000 10% 0 0% Total Renter Occupied Owner Occupied City Of Tukwila: Page 10 09/02/03 Selected 2000 Census Data SINGLE AND MULTI-FAMILY UNITS: 1990 vs. 2000 Actual Percent % in 1990 2000 Change Change 2000 Total: 5,972 7,817 1,846 31% 100% . Single-family 2,292 3,037 745 33% 39% . Multi-family 3,357 4,499 1,142 34% 58% e Other (mobile home, 323 281 -42 -13% 4% boat, RV, van, etc.) *Single-family dwelling is any single family detached dwelling trait. *Multi-family dwelling is any building that contains more than one attached unit, such as a townhouse, multiplex, or apartment building. Occupied Units by Type: 1990 vs. 2000 0 2000 4000 6000 8000 10000 Total ~' : I Multi-famil [] 1990 12000 Actual Change (bar graph) and Percent Change (line graph) in Occupied Units by Type: 1990-2000 0,000 ,~ ~= ~~ , 400/0 I1~12000~ 8,000 1' ~ 1' 30% 6,000 1' t 200/. 1' 10% 4,ooo 1' 1- o% t-lO% 0 } : : : : -20% Total Single- Multi-family Other family City Of Tukwila: Page 11 09/02/03 Selected 2000 Census Data MEDIAN HOUSING COSTS: 1990 vs. 2000 Actual Percent 1990 2000 Change Change Median Rental Cost $433 $697 $264 61% Median Home Cost $93,900 $150,100 $56,200 60% VACANCY RATES: 1990 vs. 2000 % Total % Total 1990 2000 1990 2000 Total: 5,972 7,817 100% 100% · Occupied Housing Units 5,639 7,186 94% 92% · Vacant Housing Units 333 539 6% 8% *Median Cost is the cost of the middle home or rental unit in the ordered list of costs. Median cost divides the total distribution into two equal parts; one half falls above, the other half falls below. Year Round Housing Units: 1990 vs. 2000 0 2,000 4,000 8,000 8,000 I Total I I Occupied - Housing Units I [] 1990 Units · 2000 I City Of Tukwila: Page 12 09/02/03 Selected 2000 Census Data HOUSEHOLDER BY RACE OR ETHNIC GROUP AS A PERCENT OF TOTAL OCCUPIED HOUSING UNITS: 1990 vs. 2000 Number of Units Percent Occupied Occupied 1990: 5,972 100% · White 4,783 80% · Black 371 6% · Native American 72 1% · Asian or Pacific Islander 343 6% · Other race 70 1% · Hispanic Origin (anyrace) 164 2% Number of Units Percent Occupied Occupied 2000: 7,186 100% · White, Non-Hispanic 4,746 66% · Black or African American 922 13% · Native Indian or Alaska Native 89 1% · Asian 647 9% · Native Hawaiian or Pacific Islander 78 1% · Other race 378 5% · Hispanic or Latino 631 9% * In 1990 census the Asian and Pacific Islander or Native Hawaiian categories were ' combined into one. city of Tukwila: Page 13 09/02/03 Selected 2000 Census Data AGE OF HOUSEHOLDER (IN YEARS): Tukwila vs. King County Tukwila % in King County % in King 2000 Tukwila 2000 County Total Households: 7,186 100% 710,916 100% * 15-24 years 501 7% 39,676 6% · 25-34 1,603 22% 146,516 21% · 35-44 1,980 28% 172,306 24% · 45-54 1,437 20% 152,106 21% · 55-64 808 11% 85,890 12% · 65 and over 857 12% 114,422 16% -65-74 462 6% 55,203 8% -75-84 318 4% 44,820 6% -85+ 77 1% 14,399 2% *The person, or one of the people, in whose name the home is owned, being bought or rented. Percent of Householders by Age Cohort in Tukwila and King County 30% ~ ~ % Tukwila 25%20% /~--~ --J -~'~ ~-% King County ~0% 5% ~ 0% ....... 15-24 25-34 35~4 45-54 55-64 65+ 65-74 75-~ 85+ City Of Tukwila: Page 14 09/02/03 Selected 2000 Census Data HOUSEHOLD AND FAMILY INCOME: 1990 vs. 2000 Actual Percent 1989 1999 Change Change Median Family Income $33,460 $42,442 $8,982 27% Median Household Income $30,141 $40,718 $10,577 35% *A family household includes a householder and one or more people living in the same household who are related to the householder by birth, marriage or adoption. *A household includes all of the people who occupy a housing unit as their usual place of residence. *Median Income is the income earned by the middle household in order of income. The distribution is divided into two equal groups; one half earns above the median, the other has an income below the median. Median Income in 1989 and 1999 for Families and Nonfamilies $0 $10,000 $20,000 $30,000 $40,000 $50,000 1989 ~ · 1MedianFamilYlncome aMedian Household City Of Tukwila: Page 15 09/02/03 Selected 2000 Census Data LOW AND VERY LOW INCOME HOUSEHOLDS AS A PERCENT OF TOTAL HOUSEHOLDS: 1989 vs. 1999 Percent of Total: Percent of Total: % Change: 1989 1999 1990-2000 Low Income 39% 62% 59% Very Low Income 17% 25% 47% *A "low income" household is defined by the Department of Housing and Urban Development (HUD) as a household with a total yearly income equal to or less than 80% of the area county median income. *A "very low income" household is a household with an income equal to or less than 50% of the area county median income. *Median Income is the income earned by the middle household in order of income. The distribution is divided into two equal groups; one half earns above the median, the other has an income below the median. Low and Very Low Income Low and Very Low Income Households as a Percent Households as a Percent of Total Households: 1989 of Total Households: 1999 13% 17% ILow Income DVery Low Income 1Low Income glVery Low Income m/~l other households m/~l other households City Of Tukwila: Page 16 09/02/03 Selected 2000 Census Data HOUSEHOLD INCOME: Tukwila vs. King County Percent of Total Percent of Total Tukwila Households in Households in King County 1999 Tukwila King Count~ 1999 Total Households: 7,186 100% 100% 711,235 <$I0,000 469 6% 6% 45,534 $10,000- 14,999 381 5% 4% 30,146 $15,000 - 24,999 975 14% 9% 66,414 $25,000 - 34,999 1,089 15% 11% 77,320 $35,000 - 49,999 1,548 22% 16% 111,224 $50,000 - 74,999 1,486 21% 21% 150,548 $75,000 - 99,999 613 9% 14% 96,885 $100,000- 149,999 430 6% 12% 81,613 $150,000- 199,999 77 1% 3% 24,479 $200,000 or more 100 1% 4% 27,172 Household Income in Tukwila vs. King County in 1999 ~ Percent in Tukwila 1999 ~ Percent in King County 1999 25% 20% loo/o. §% 0% '<$10,000 $10,000- $15,000- $25.000- $35.000- $$0,000- $75,000- $100,000- $150.000- >200000 14,999 24,999 34,999 49,999 74,999 99,999 149,999 199,999 City Of Tukwila: Page 17 09/02/03 Selected 2000 Census Data EDUCATIONAL ATTAINMENT: 1990 vs. 2000 Actual Percent % Total % Total 1990 2000 Change Change 1990 2000 Total Persons 25+ years old: 8,071 11,365 3,294 41% 68% 66% · <9th grade cOmpleted 349 859 510 146% 3% 5% · 9th -- 12th grade, no diploma 876 1,238 362 41% 7% 7% · High School Graduate 2,528 3,449 921 36% 21% 20% · Some College, no degree 2,762 3,828 727 33% 23% 22% · Bachelors degree 1,255 1,515 260 21% 11% 9% · Graduate School 301 476 175 58% 3% 3% Actual (bar chart) and Percent Change (line graph) for Educational Attainment: 1990-2000 2,000 ! ~ / 200% o,ooo 1' - 150% 8,000 1- 6,000 1- I [;tV X lOO% 4,000 1' li):.:~ N,~ ~~ ~. ~F~, ~.~,._.._, 500/0 2'0000 t I~....am : ~ : I~1 : . . . 0% Total <0th grado 9th-12th High Some Bachelors Graduate Peraons grade, no School College, no degree Degree 25+yeara diploma Graduate degree old EDUCATIONAL ATTAINMENT AS A PERCENT OF TOTAL PERSONS 25+ YEARS OLD: Percent of Percent of Total 1990 Total 2000 Total Persons 25+ years old: 100% 100% · <9th grade 4% 8% · 9th - 12th grade, no diploma 11% 11% · High School graduate 31% 30% · Some college, no degree 34% 34% · Bachelors Degree 16% 13% · Graduate School 4% 4% city of Tukwila: Page 18 09/02/03 Selected 2000 Census Data SCHOOL ENROLLMENT: 1990 vs. 2000 Actual Percent % Total % Total 1990 2000 Change Change 1990 2000 3+ years old enrolled: 2,418 4,147 1,729 42% 20% 24% · Preprimary 265 506 241 48% 2% 3% · Grade School 1,289 2,716 1,427 53% 11% 16% · College/Grad School 894 925 31 3% 8% 5% Persons 3+ years old by School Enrollment: 1990 vs. 2000 0 1,000 2,000 3,000 4,000 5,000 Population 3+ Years Old Enrolled in School: ~. J Prepfimary ElementaPj or High [] 1990 School [] 2000 Actual (bar graph) and Percent (line graph) Change in Persons (3+ years old) by School Enrollment 2,000 60°/( 50°/( 1,500 40o/~ 1,000 30°/~ 20o,~ 500 10°/ 0 + 0% Population 3+ Years Preprimary Elementary or High College Old Enrolled in School School: City Of Tukwila: Page 19 09/02/03 Selected 2000 Census Data PERSONS BY SCHOOL ENROLLMENT AS A PERCENT OF TOTAL PERSONS (3+ YEARS OLD): 1990 vs. 2000 Percent of Percent of Total: 1990 Total: 2000 Enrolled in School: 20% 24% · Preprima~y 2% 3% · Elementary/High School 11% 16% · College 8% 5% Not enrolled in school 80% 76% Persons (3+ years old) by School Pemons (3+ years old) by School Enrollment: 1990 Enrollment: 2000 City Of Tukwila: Page 20 09/02/03 Selected 2000 Census Data O ......................... Initials ....................... I~MNO. CAS Number: 03-116 i Meeting Date Prepared by Mayor's review Council review 09-08-03 EB Agenda Item Title: PROPOSED COMMUNITY DEVELOPMENT BLOCK GRANT PROJECTS - 2004 Original Sponsor: Council Adrnin. X Human Services Division Timeline: Decisions must be received by King County no later than September 22, 2003. Sponsor's Summary: Request approval of CDBG Projects for 2004. Also request approval of Contingency Plan for Decreases. Recommendations: Sponsor: Same as Administration. Committee: Administration: Approve proposed actions. CostImpaet(ifknown): Total amount: t:o 1oo a~.locat:ed - $234,200.00 Fund Source (if known): Federal Housing and Urban Development Mee!;noo Date Action 09-08-03 Meeting Date Attachments 09-08-03 Memorandum to Mayor's Office - dated 08-29-03 2004 Estimates of CDBG Fund Distribution as of 08-18-03 2004 Summary Sheet Funding Contingency Plan for Decrease in Fund Allocation Minutes - Community Affairs & Parks Committee - August 26, 2003 MEMORANDUM DATE: 8/29/03 TO: MAYOR'S OFFICE CC: COMMUNITY AND PARKS FROM: EVIE BOYKAN, HUMAN SERVICES RE: RECOM2MENDATIONS FOR CDBG 2004 Once again, a group of City employees came together to assist with recommendations for CDBG projects for next year. Staff included Moira Bradshaw, Lucy Lanterbach, Bran Shekon, and myself. The following outlines the recommendations that were made. The recommendations include reallocated funds from previous year projects. Estimates may change in December as final allocation figures are available. Identified projects and documentation are due to King County on September 22. Total Estimate Available - $254,200 Maximum Usable for Public Service - $32,193 Maximum Usable for Planning and Admin - $24,500 Public Service $32,193 is available for public service/or human service projects. Bruce Fletcher wants to continue to use these funds to support the Recreation Leader poskion in the Senior program. We recommend that this funding stay with that position. Planning and Administration $24,500 is available. We recommend continuing to suppo~the South King County Domestic Violence Services Planner with $10,000. This multi-city supported poskion will continue to look at assessing and planning how we can improve our coordinated domestic violence response in South County. The remainder of the funds will be allocated to a capital project. Capital Projects $212,007 is available. We recommend supporting the King County Housing Repair Program with $84,007. We recommend continuing Senior Services of Seattle King CountyMinor Home Repair program with $18,000 for 2004. This program offers small repairs (under $1,500) at $10 hr if the homeowner can afford to pay. We recommend the following City of Tukwila Parks projects: $50,000 to replace the playground structure at Crystal Springs Park and $40,000 to replace the 8/4/2003 MEMORANDUM 2 playground structure at Duwamish Park. In both parks, the playground structures are showing signs of wear and should be replaced. Paul Surek will be available to answer any questions. Unfortunately, at the late hour, I found out that the sidewaLk/pedestrian access/curb ramp project identified in the Southcenter area does not qualify, due to not meeting area benefit requirements (not enough low and moderate income residents in that census tract, block group). This $20,000 will be unallocated until an appropriate project can be found. I will return back to Council at that time. Contingencies We recommend that any decrease in funding come from the King County Housing Repair program. We do not have any decision at this time for increases - it really depends on how much of an increase would be available. Please let me know if you have further questions. ATTACHMENTS 7/18/2002 2004 Estimates of CDBG Fund Distribution as of 8/18/03 City of Cons Entitlement SHARE RE- CAPTURED PROGRAM I TOTAL SHARE PUBLIC SERVI PLANNING BALANCE (5) Bothell 0.03089 177,359 38,841 18,698 234,898 32,079 24,413 178,406 Burien 0.04916 282,233 9,182 16,679 308,094 51,048 38,848 218,198 Covington 0.01283 73,641 217 20,763 94,621 13,320 10,136 71,165 Des Moines 0.03931 225,725 664 16,996 243,385 40,827 31,070 171,488 Enumclaw 0.01606 92,236 30,127 1,877 124,240 16,683 12,696 94,862 Federal Way 0.11500 743,993 250,721 179;072 1,173,786 119,425 90,884 963,476 Issaquah 0.01072 61,563 9,811 4,068 75,442 11,135 8,474 55,833 Kirkland 0.03953 226,989 669 25,026 252,683 41,056 31,244 180,384 Lake Forest Park 0.00938 53,854 7,654 4,023 65,531 9,741 7,413 48,378 Mercer Island 0.01149 65,968 194 17,843 84,005 11,932 9,080 62,993 Redmond 0.03557 204,223 3,131 42,296 249,650 36,938 28,110 184,602 Renton 0.06906 443,494 29,360 28,986 501,840 71,715 54,576 375,550 SeaTac 0.04199 241,071 25,816 51,582 318,469 43,603 33,182 241,684 Shoreline 0.06596 348,912 2,114 43,687 394,713 68,495 52,126 274,093 Tukwila 0.03100 177,991 28,066 48,142 254,200 32,193 24,500 197,506 TOTAL CITITES 57.91% 3,318,320 436,567 519,738 4,375,557 600,189 456,752 3,318,616 Co Sm Citites 42.09% 2423163 309,202 743,220 3,475,585 438281 354,538 2631003 5,741,483 5,918,175 745,769 1,262,958 7,851,142 1,038,469 811,290 5,949,619 Consortium PI 1 221,7261 1,484,983 Entitlement 7448000 Admin Set -aside 1229827 HSP Set -aside 300000 Joint Agmt Adjust. 176692 Balance 5741481 2004 SUMMARY SHEET for CDBG Pass-through City Cit of Tukwila CDBG Funds Available for 2004 Allocation: Share of 2004 Entitlement Grant Allocation: $177,991 Share of Recaptured Funds 28,067 Additional Recaptured Funds (please identify) $ Program Income 48,142 Total Available $254,200 Portion allowable for Public Services $32,193 Portion allowable for Planning/Administration $24,500 Funds Unallocated $20,000 CDBG Funds Allocated in 2004 Projects $234,200 Public Planning/ Project Title Sub -Total Capital Services Admin Planning & Administration 1 (SKC Dom Viol Planner (prey. funding) $10,000 $10,000 # C03730 Public Services 2 Tukwila Sr. Citizen Prg Support $42,193 $32,193 3apital 3 Playground structure replacement $132,193 $90,000 4 Sr. Services Minor Home Repair $150,193 $18,000 5 Unallocated $20,000 King County Housing Repair Program $234,200 $84,007 I Subtotal, Capital 192,007 Subtotal, Public Service 32,193 Subtotal, Planning & Administration 10,000 TOTAL ALLOCATED (must not exceed available) 234,200 2003 Summary Sheet 1 8/29/03 FUNDING CONTINGENCY PLAN FOK : ~ DECREASE .: IN FUND ALLOCATION . In the event King County CDBG Consortium receives a reduced allocation of 2004 entitlement funds from the U.S. Department of Housing and Urban Development resulting in a decrease of 2004 Pass-through CDBG funds the City will adj~st project awards as follows: SECTION 1 - PUBLIC SERVICE - Tho City will DECREASE tho amount of CDBG funds allocated for public services as follows: DISTRIBUTION METHOD Indicate Original Award : Project Title Maximum SECTION 2 - CAPrrAL F[rbFDING-- The City will DECREASg the amount of CDBG funds allocated for Capital Funding as follows: DISTRIBUTION METHOD [ ] ~ ~ TARGETED / ..~ ... [ Pro, ect T~tle / ~ / - ~ 8 /Maxtmum Original Award / raon,y | o I r~ I ~ ~, 8 / $ Amount : Housing Rcpmr ~,007 SECTION :3 - pLX~rn~G & A~in, aST~X~IO~ The City meets the criteria set forth in Section IV of the 2000-2003 Interlocal Cooperation Agreement for the King County CDBG Consor'dum and will reduce funding to reach the MAXnVlOM amount allowable for planning and adminisU'etion activities as follows: DISTRIBUTION METHOD · ' .ist i~ t Original Award · ,rio~ Project Title · )rde~ METItODS OF DISTRIBUTION: The City will DIVIDE the decreose of CDBG funds avai able EQIJALL¥ t0 a I funded P J allocation to the city, the decrease will bc reflected in the funded projects as indicated on the table: List or indicate the order of priority the decrease should be applied. 2004 funding amounts for projects will be those published in the City's Public Notice prior to submittal to King Count3, for the 2004 The Funding Contingency Plan will be used to modify these amounts in the event of a reduction in year 2004 pass- Action Plan. fl~eegh CDBG funds. The City will include the Funding Contingency Plan in that public notice. Any amounts less than 5% will be carried forward to 2005 os unalloeated funds for distr~utinn in that Authorized $iguntur¢: Community and Parks Committee August 26, 2003 Present: Joan Hernandez, Chair; Joe Duffle, Jim Haggerton Bruce Fletcher, Rick Still, Evie Boykan, Brian Shelton, Mike Sweeney, Lucy Lauterbach; Dennis Robertson, Eli Kimaro 1. CDBG Recommendations Erie introduced to the committee the 2003 recommendations for spending the approximately $254,000 Tukwila will receive in 2004 fi:om CDBG. Funds can be allocated to certain services such as public service, planning and administration, and ~apital projects. The public service funds ($32, 193) will be used as in previous years, for the recreation leader in the senior program. $10,000 in planning and administration funds will continue to support the South King County Domestic Violence Services Planner, which several cities jointly fund. Erie introduced Eli, who has been the person who has coordinated domestic violence services among South King residents. Eli explained that she sits on local and regional domestic violence boards and task forces. One program she has now deals with the children who are affected by domestic violence. The capital project is going to fund several programs, including both major and minor home repair. Funds will also be used to replace the play equipment at Crystal Springs Park and Duwamish Park. Finally, $20,000 will partially fund some sidewalk and pedestrian access issues on Andover Park West near Strander. Joan said she supported helping with the bus stop on Andover, as it results in many pedestrian improper street crossings and other dangerous actions. Staff recommended that any decreases that are needed come from the housing repair, which has not received as many calls for help as hoped for. There was no recommendation for where any increases should go, though that can be decided by Council when they discuss this issue. Recommend to COW September 8~ with Public Hearine Sel~tember 15th.. 2. Intra fund Transfer Mike Sweeney explained the somewhat complicated scheme that happened between the clubhouse construction and golf course repair projects. The o~iginal plan was for some soils generated from building the clubhouse to be used on the golf course within 30 days. The clubhouse project was delayed when the first bidder became disqualified. When the soil became available, the golf course contractor was past the point he could easily use it. However, he redesigned the 18th hole and used the 3,000 yards of soil. Had the course not been able to use it, it would have increased the clubhouse cost $48,000 to get rid of it. As it was, the work cost $6,528 to do. Because it was taken off the clubhouse's project cost, the debit should be to the clubhouse, and the credit should go to the golf course. The golf course budget therefore needs to be increased, and the clubhouse fund needs to be decreased, both by amounts of $6,528. Recommend issue to Council., Committee chair approval CAS Number: Ref: 03-086 Original Agenda Date: 09 -08 -03 gpnda Item Title: Proposed 2003 Bond Issue Proposed Ordinance 'riginal Sponsor: Council imeline: Adopt Ordinance ponsor's Summary: Meeting Date 09 08 03 Initials Meeting Date Prepared by 1 Mayor's review 1 Council review 09 -08 -03 ARD IKflb 1 C. I I I I I I I I Admin. X ITEM No. The proposed ordinance relates to the bond issue for the Foster Golf Course project, payment to King County to turn over South Park Bridge and funding for Arterial Street projects. ecommendations: Sponsor: Adopt ordinance. Committee: At 6/16/03 Finance Safety Committee meeting. Forwarded to 6/23/03 COW meeting. Administration: Same as sponsor. ost Impact (if known): Debt Service for future payments. and Source (if known): Golf Course revenues and General Taxes per Planning Model fleeting Date 1 Action 06 -23 -03 I Discussed. Move forward when final bond issue is ready. 09 -08 -03 1 Attachments Staff report to Council from Alan Doerschel, dated September 4, 2003 Draft Ordinance To: Mayor & City Council From: Alan R. Doerschel Date: September 4, 2003 Subject: Proposed Bond Issue We are ready to actually issue the Bonds approved by the Council on June 23. Attached are the original draft ordinance and a draft contract with Lehman Brothers, Inc. T ~c.e will.be avalla~ble_o~n .Mon. day along with the contract when the financial numbers are dete~mined. This is the same procedure as previous bond issues. Concurrent with the adoption of the Bond Ordinances, the Council would authorize the Mayor to sign a contract with Lehman Brothers, Inc. to purchase the bonds. ..' AN ORDINANCE OF Tt-t~ Cl'rxr COUNCIL OF THE CITY OF TUKWILA, WASItINGTON, RELATING TO CONTRACTING INDEBTEDNESS; PROVIDING FOR '1'1t1~ ISSUANCE OF $9,850,000 PAR VALUE OF LIMITED TAX GENERAL OBLIGATION BONDS, SERIES 2003A AND $2~200,000 PAR VALUE OF LIMITED TAX GENERAL OBLIGATION · . BONDS, SERIES 2003T (TAXABLE) OF THE crrY' FOR GENERAL CITY · PURPOSES TO PROVIDE FUNDS WI'I'It V~ICH TO REIMBURSE ~ ..... ITSELF FOR A PART OF THE COST OF TRANSFERRING CERTAIN .:.-..:. PROPERTY BETWEEN THE CITXr AND KI1NG COUNTY, TO PAY OR ' :~- REIMBURSE ITSELF FOR A PART OF THE COST OF MAKIiNG - VARIOUS ARTERIAL STREET IMPROVEMENTS, TO REDEEM 'l'ldl~ : :.~ CITY'S OUTSTANDING LIMITED TAX GENERAL OBLIGATION BOND · ANTICIPATION NOTE, 2009 (FOSTER GOLF COURSE), TO MAKE ' .~: CERTAIN IMPROVEMENTS TO THE FOSTER. GOLF COURSE CLUBHOUSE, FOR OTHER CITY PURPOSES, AND TO PAY THE COSTS OF ISSUANCE OF THE BONDS; FIXING THE DATE, FORM, MATURITIES, INTEREST RATES, TERMS AND COVENANTS OF THE BONDS; ESTABLISHING A NOTE REDEMI~TION FUND AND A PROJECT FUND; AND APPROVING THE SALE AND PROVIDING FOR THE DELIVERY OF THE BONDS TO LEHMAN BROTHERS INC. OF SEATTLE, WASHINGTON; PROVIDING FOR SEVERABILITY AND ESTABLISIHNG AN EFI~'ECTIVE DATE. WHEREAS, purmant to Ordinance No. 1938, the City of Tukwila, Washington (th ::.:.~ "City"), issued and sold its not to exceed $3,500,000 par value Limited Tax General Obligation .. ~:~ ' "..' Bond Anticipation Note, 2000 (Foster GoffCourse) (the '~qote''), for the purpose of paying a pm of the .cost of mak~n.' g cc~ain improvements to the Foster Golf Course including a new clubhouse, parking, course maprovemants, a maintenance facility and other facility upgrades (the "Foster Golf WHEREAS, the City is in need of ~.nsferrmg certain property between the C~ty and King County, making various arterial street improvements, redeeming the City's outstanding Note, making ceVz~ improvements to the restaurant at the Foster Golf Course clubhouse, and for other City purposes (collectively, the '"Projects''), the estimated cost of which is moro than $12,050,000, '~. - ;::. and the City does not hav? available sufficient funds to pay the cost; and WHEREAS, the City Council on February 18, 2003 adopted Resolution No. 1514 declaring its intent to roimburso itself from the proceeds of a furore benowing for the transfer of certain property between the City and King County, and on May 27, 2003 adopted Resolution No.1523 declaring its intent to reimburse itself from the proceeds of a future borrowing for certain street improvements; and WHEREAS, the City Council deems it to be in the best interest of the City to borrow money by the issuance of limited tax general obligation bends in the principal amount of $12,050,000 to provide funds with which to pay and redeem the Note and to pay the costs of the Projects; and = WHEREAS, Lehman Brothers Inc. has offered to purchase the Bonds authorized herein ..... under the terms and conditions set forth in this Ordinance in the form of a bond purchase contract; .... [[and]] · ' -. WHEREAS, [Bond Imurance]. NOW, THEREFORE, THE CITY COUNCIL OF THE CITY OF TUKWJLA, WASHINGTON, DO ORDAIN AS FOLLOWS: Section 1. 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 2003 is $3,489,704,657, and the City has outstanding net general indebtedness evidenced by limited tax general obligation bonds [and notes] in the principal amount of $18,677,000 incurred within the limit of up to 1 -1/2% of the value of the taxable property within the City permitted for general municipal purposes without a vote of the qualified voters therein, no outstanding unlimited tax general obligation bonds issued pursuant to a vote of the qualified voters of the City, and the amount of additional indebtedness for which bonds are authorized herein to be issued is $8,550,000. Section 2. Authorization of Bonds. The City shall borrow money on the credit of the City and issue negotiable limited tax general obligation bonds evidencing that indebtedness in the combined amount of $12,050,000 in two Series for the purposes described in subsections (A) and (B) of this Section. The general indebtedness to be incurred shall be within the limit of up to 1 -1/2% of the value of the taxable property within the City permitted for general municipal purposes without a vote of the qualified voters therein. A. The Series 2003A Bonds shall be issued in the amount of $9,850,000 for general City purposes to provide the funds to pay and redeem the outstanding Note, to reimburse itself for a part of the costs of certain property transfers between the City and King County, to pay or reimburse itself for a part of the costs of various arterial street improvements, and for other City purposes (the "2003A Projects and to pay the costs of issuance and sale of the Series 2003A Bonds. B. The Series 2003T Bonds shall be issued in the amount of $2,200,000 to provide the funds to pay a part of the cost of constructing and equipping a restaurant and related facilities at the Foster Golf Course clubhouse (the "Restaurant Improvements Project and to pay the costs of issuance and sale of the Series 2003T Bonds. Section 3. Description of Bonds. The bonds shall be called Limited Tax General Obligation Bonds, Series 2002A (the "Series 2003A Bonds and Limited Tax General Obligation Bonds, Series 2003T (Taxable) (the "Series 2003T Bonds of the City (collectively, the `Bonds The Bonds shall be dated the date of delivery; shall be in the denomination of $5,000 or any integral multiple thereof within a single maturity; shall be numbered separately in the manner and with any additional designation as the Bond Registrar (the fiscal agent of the State of Washington) deems necessary for purposes of identification; shall bear interest (computed on the basis of a 360 -day year of twelve 30 -day months) payable semiannually on each June 1 and December 1, commencing December 1, 2003 to the maturity or earlier redemption of the Bonds; and shall mature on June 1 in years and amounts and bear interest at the rates per annum as described in this Section. A. Series 2003A Bonds. The Series 2003A Bonds shall be in the aggregate principal amount of $9,850,000 and shall mature on the dates and bear interest at the rates as follows: Maturity Interest Maturity Interest Years Amounts Rates Years Amounts Rates 2003 2013 2004 2014 2005 2015 2006 2016 2007 2017 2008 2019 2009 2020 2010 2021 2011 2022 2012 2023 The life of the capital facilities to be acquired with the proceeds of the Bonds exceeds the term of the Bonds. Galen] r "s .ad 9/5/032 B. Series 2003T Bonds, The Series 2003T Bonds shall be in the aggregate principal amount of $2,200,000 and shall mature on the dates and bear interest at the rates as follows: Maturity Interest Maturity Interest Years Amounts Rates Years Amounts Rates 2003 2013 5 2004 2014 2005 2015 2006 2016 2007 2017 2008 2019 2009 2020 2010 2021 2011 2022 2012 2023 Interest on the Series 2003T Bonds will not be excludable from the gross income of a registered owner for federal income tax purposes. Section 4. Registration and Transfer of Bonds. A. The Bonds shall be issued only in registered form as to both principal and interest and shall be recorded on books or records maintained by the Bond Registrar (the "Bond Register The Bond Register shall contain the name and mailing address of the owner of each Bond and the principal amount and number of each of the Bonds held by each owner. B. 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. C. The Bonds initially shall be registered in the name of Cede Co., as the nominee of The Depository Trust Company, New York, New York "DTC The Bonds so registered shall be held in fully immobilized form by DTC as depository in accordance with the provisions of a Blanket Issuer Letter of Representations with DTC substantially in the form on file with the City Clerk and by this reference made a part hereof (as it may be amended from time to time, the "Letter of Representations To induce DTC to accept the Bonds as eligible for deposit at DTC, the City approves the Letter of Representations. The Finance Director of the City is authorized and directed to execute and deliver the Letter of Representations, on behalf of the City, to DTC on or before the date of delivery of the Bonds to the purchaser thereof and the payment therefor, with such changes as the Finance Director deems to be in the best interest of the City, and his execution and delivery of the Letter of R_ ations shall evidence irrevocably the approval of the Letter of Representations by the City. 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). D. 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 shall not mean the owners of any beneficial interests in the Bonds. Registered ownership of such Bonds, or any portions thereof, may not thereafter be transferred except: 1. 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; 2. To any substitute depository appointed by the City or such substitute depository's successor; or Gomel Tax Bond sis'm 3 3. To any person if the Bonds are no longer held in immobilized form. E. 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. F. If (1) DTC or its successor (or substitute depository or its successor) resigns from its functions as depository, and no substitute depository can be obtained, or (2) 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 5. Payment of Bonds. Both principal of and interest on the Bonds shall be payable in lawful money of the United States of America. Interest on the Bonds shall be paid by checks or drafts of the Bond Registrar mailed on the interest pa date to the registered owners at the addresses appearing on the Bond Register on the 15 day of the month. preceding the interest payment date. Principal of the Bonds shall be payable upon presentation and surrender of the Bonds by the registered owners at either of the principal offices of the Bond Registrar at the option of the owners. Notwithstanding the foregoing, 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. Section 6. Redemption Provisions and Open Market Purchase of Bonds. A. Bonds maturing in the years 2003 through 2012, inclusive, shall be issued without the right or option of the City to redeem those Bonds prior to their stated maturity dates. The City reserves the right and option to redeem the Bonds maturing on or after June 1, 2013, prior to their stated maturity dates at any time on or after June 1, 2012, as a whole or in part (within one or more maturities selected by the City and randomly within a maturity in such manner as the Bond Registrar shall determine), at par plus accrued interest to the date fixed for redemption. B. [[IF TERM BONDS]] [Bonds maturing in are Term Bonds and, if not redeemed under the optional redemption provisions set forth above or purchased in the open market under the provisions set forth below, shall be called for redemption randomly (in such manner as the Bond Registrar shall determine) at par plus accrued interest on June 1 in years and amounts as follows: Mandatory Mandatory Mandatory Mandatory Redemption Redemption Redemption Redemption Years Amounts Years Amounts C. [If the City shall redeem Term Bonds under the optional redemption provisions set forth above or purchase Term Bonds in the open market as set forth below, the par amount of the Term Bonds so redeemed or purchased (irrespective of their actual redemption or purchase prices) shall be credited against one or more scheduled mandatory redemption amounts for those Term Bonds (as allocated by the City) beginning not earlier than 60 days after the date of the optional redemption or purchase, and the City shall promptly notify the Bond Registrar in writing of the manner in which the credit for the Term Bonds so redeemed or purchased has been allocated.] D. Portions of the principal amount of any Bond, in installments of $5,000 or any integral multiple thereof, may be redeemed. If less than all of the principal amount of any Bond is redeemed, upon surrender of that Bond at either of the principal offices of the Bond Registrar, there shall be issued to the registered owner, without charge therefor, a new Bond (or Bonds, at the option of the registered owner) of the same maturity and interest rate in any of' the denominations authorized by this ordinance in the aggregate principal amount remaining unredeemed.._ E. 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 plus accrued interest to the date of purchase. omaaITV Bond 915103 4 F. All Bonds purchased or redeemed under this section shall be canceled. G. Notwithstanding the foregoing, for as long as the Bonds are registered in the name of DTC or its nominee, selection of Bonds for redemption shall be in accordance with the Letter of Representations. Section 7. Notice of Redemption. The City shall cause notice of any intended redemption of Bonds to be given not less than 30 nor more than 60 days prior to the date fixed for redemption by fast -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 owner of any Bond. Interest on Bonds called for redemption shall cease to accrue on the date fixed for redemption unless the Bond or Bonds called are not redeemed when presented pursuant to the call. In addition, the redemption notice shall be mailed within the same period, postage prepaid, to Moody's Investor Service, Inc., and Fitch Ratings at their offices in New York, New York, or their successors, to Lehman Brothers Inc., at its principal office in Seattle, Washington or its successor[[, to the Bond Insurer at its principal office in New York, or its successor]]; and to such other persons, including registered securities depositories, and with such additional information as the City Finance Director shall determine, but these additional mailings shall not be a condition precedent to the redemption of Bonds. Notwithstanding the foregoing, for as long as the Bonds are registered in the name of DTC or its nominee, notice of redemption shall be given in accordance with the Letter of Representations. Section 8. Failure To Redeem Bonds. If any Bond is not redeemed when properly presented at its maturity or call date, 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 call date 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 redemption fund hereinafter created and the Bond has been called for payment by giving notice of that call to the registered owner of each of those unpaid Bonds. Section 9. 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, and 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. A. The Bonds shall be printed on good bond paper 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. B. 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: c,r.,arvewe 95/035 Section 10. Form and Execution of Bonds. CERTIFICATE OF AUTHENTICATION This Bond is one of the fully registered City of Tukwila, Washington, Limited Tax General Obligation Bondy, [Series 20034] [Series 2003T (Taxable)], described in the Bond Ordinance. By WASHINGTON STATE FISCAL AGENT Bond Registrar Authorized Signer The authorized signing of a Certificate of Authentication shall be conclusive evidence that the Bonds so authenticated have been duly executed, authenticated and delivered and are entitled to the benefits of this ordinance. C. If any officer whose 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 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 11. Bond Registrar. A. The Bond Registrar shall keep, or cause to be kept, at its principal corporate trust office, sufficient books for the registration and transfer of the Bonds, which shall be open to inspection by the City at all tunes. 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 Ordinance No. 1338 establishing a system of registration for the City's bonds and obligations. B. 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 the 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 Bond owners. Section 12. Preservation of Tax Exemption for Interest on Series 2003A Bonds. The City covenants that it will take all actions necessary to prevent interest on the Series 2003A 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 Series 2003A Bonds or other funds of the City treated as proceeds of the Series 2003A Bonds at any time during the term of the Series 2003A Bonds which will cause interest on the Series 2003A 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 requirement of Section 148 of the Internal Revenue Code of 1986, as amended (the "Code is applicable to the Series 2003A Bonds, take all actions necessary to comply (or to be treated as having complied) with that requirement in connection with the Series 2003A 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 Series 2003A Bonds from being included in gross income for federal income tax purposes. The City certifies that it has not been notified of any listing or proposed listing by the Internal Revenue Service to the effect that it is a bond issuer whose arbitrage certifications may not be relied upon. Section 13. Refunding or Defeasance of the Bonds. A. The City may issue refunding bonds pursuant to the laws of the State of Washington 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 direct obligations of the United States of America 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 General TU Bond 9 /5/036 account established for the payment or redemption of the defeased Bonds to any lawful purposes as it shall determine. B. 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. Designation of Bonds as "Qualified Tax- Exempt Obligations." The City has determined and certifies that (a) the Series 2003A Bonds are not "private activity bonds" within the meaning of Section 141 of the Code; (b) 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 Series 2003A Bonds are issued will not exceed $10,000,000; and (c) the amount of tax- exempt obligations, including the Series 20014 Bonds, designated by the County as "qualified tax- exempt obligations" for the purposes of Section 265(6)(3) of the Code during the calendar year in which the Series 2003A Bonds are issued does not exceed $10,000,000. The County designates the Series 2003A Bonds as "qualified tax- exempt obligations" for the purposes of Section 265(b)(3) of the Code. Section 15. Bond Fund and Deposit of Bond Proceeds. A. Bond Fund Created. There is created and established in the office of the City Finance Director a special fund designated as the Limited Tax General Obligation Bond Fund, 2003 (the "Bond Fund for the purpose of paying principal of and interest on the Bonds. Accrued interest on the Bonds, if any, received from the sale and delivery of the Bonds shall be paid into the Bond Fund. All taxes collected for and allocated to the payment of the principal of and interest on the Bonds shall be deposited in the Bond Fund. B. Deposit of Proceeds. a. Note Redemption. Principal proceeds received from the sale and delivery of the 2003A Bonds sufficient in amount, together with other funds available therefor, to pay and redeem the Note shall be deposited in the previously established Limited Tax General Obligation Bond Anticipation Note Account 2000. b. 2003A Project Accounts within the Foster Golf Course Fund. City Finance Director special fund designated as the fib' 3 Fund (the "2003A Project Fund The Finance Director is authorized to establish within the 2003A Project Fund such accounts for the 2003A Projects as he may deem appropriate. The remaining principal proceeds and premium, if any, received from the sale and delivery of the Series 2003A Bonds shall be paid into one or more accounts within the 2003A Project Fund and used for the purposes specified in Section 2.A of this ordinance. Until needed to pay the costs of the 2003A Projects and costs of issuance of the Bonds, the City may invest principal proceeds temporarily in any legal investment, and the investment earnings may be retained in the 2003A Project Fund and be spent for the purposes of that fund except that earnings subject to a federal tax or rebate requirement may be withdrawn from the 2003A Project Fund and used for those tax or rebate purposes. 2. Series 2003T Bonds. There is created and established in the office of the City Finance Director, a special account designated as .'((ro lrilC"iouse:lfesiatiairt gm eil "i t�l�a�'iy1� �J. The Finance Director is authorized to establish within the 2003T Project Fund such accounts as he may deem appropriate. The principal proceeds and premium, if any, received from the sale and delivery of the Series 2003T Bonds shall be paid into one or more accounts within the 2003T Project account and used for the purposes specified in Section 2.B of this ordinance. Until needed to pay the costs of the 2003T Projects and costs of issuance of the Bonds, the City may invest principal proceeds in any legal investment, and the investment earnings may be retained in the 2003T Project Fund and be spent for the purposes of that fund. Omen] TuMwd wxad 7 1. Series 2003A Bonds. Section 16. Approval of Bond Purchase Contract. A. Lehman Brothers Inc. of Seattle, Washington, has presented a purchase contract (the "Bond Purchase Contract to the City offering to purchase the Bonds under the terms and conditions provided in the Bond Purchase Contract, which written Bond Purchase Contract is on file with the City Clerk and is incorporated herein by this reference. The City Council fords that entering into the Bond Purchase Contract is in the City's best interest and therefore accepts the offer contained therein and authorizes its execution by City officials. B. 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 Foster Pepper Shefelman PLLC, municipal bond counsel of Seattle, Washington, regarding the Bonds. C. The proper City officials are authorized and directed to do everything necessary for the prompt delivery of the Bonds to the purchaser and for the proper application and use of the proceeds of the sale thereof. Section 17. Preliminary Official Statement Deemed Final. The City Council has been provided with copies of a preliminary official statement dated June 2003 (the "Preliminary Official Statement prepared in connection with the sale of the Bonds. For the sole purpose of the Bond purchaser's compliance with Securities and Exchange Commission Rule 15c2- 12(6)(1), the City "deems final" that Preliminary Official Statement as of its date, except for the omission of information as to offering prices, interest rates, selling compensation, aggregate principal amount, principal amount per maturity, maturity dates, options of redemption, delivery dates, ratings and other terms of the Bonds dependent on such matters. Section 18. Undertaking to Provide Continuing Disclosure. To meet the requirements of United States Securities and Exchange Commission "SEC Rule 15c2- 12(b)(5) (the "Rule as applicable to a participating underwriter for the Bonds, the City makes the following written undertaking (the "Undertaking for the benefit of holders of the Bonds: 1. Undertaking to Provide Annual Financial Information and Notice of Material Events. The City undertakes to provide or cause to be provided, either directly or through a designated agent: a. To each nationally recognized municipal securities information repository designated by the SEC in accordance with the Rule "NRMSIR and to a state information depository, if any, established in the State of Washington (the "SID annual financial information and operating data of the type included in the final official statement for the Bonds and described in subsection (2) of this section ("annual financial information b. To each NRMSIR or the Municipal Securities Rulemaking Board "MSRB and to the SID, timely notice of the occurrence of any of the following events with respect to the Bonds, if material: (1) principal and interest payment delinquencies; (2) non payment related defaults; (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 or events affecting the tax exempt status of the Bonds; (7) modifications to rights of holders of the Bonds; (8) Bond calls (other than scheduled mandatory redemptions of Tenn Bonds); (9) defeasances; GenaaTVDond 9/5/03 8 (10) release, substitution, or sale of property securing repayment of the Bonds; and (11) rating changes. c. To each NRMSIR or to the MSRB, and to the SID, timely notice of a failure by the City to provide required annual financial information on or before the date specified in subsection (2) of this section. 2. Type of Annual Financial Information Undertaken to be Provided. The annual financial information that the City undertakes to provide in subsection (1) of this section: (4) ad valorem tax levy rates and amounts and percentage of taxes collected; b. Shall be provided to each NRMSIR and the SID, 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, cmmn+^ncing with the City's fiscal year ending December 31, 2003; and c. May be provided in a single or multiple documents, and may be incorporated by reference to other documents that have been filed with each NRMSIR and the SID, or, if the document incorporated by reference is a "final official statement" with respect to other obligations of the City, that has been filed with the MSRB. 3. Amendment of Undertaking. a. 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, NRMSIR, the SID or the MSRB, under the circumstances and in the manner permitted by the Rule. b. The City will give notice to each NRMSIR or the MSRB, and the SID, 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. 4. Beneficiaries. The Undertaking evidenced by this section shall inure to the benefit of the City and any holder of Bonds, and shall not inure to the benefit of or create any rights in any other person. 5. 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 the Rule 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 each NRMSIR or the MSRB and the SID. Genets Tax Bond 9 /5/03 9 a. Shall consist of (1) annual financial statements prepared (except as noted in the financial statements) in accordance with applicable generally accepted accounting principles applicable to governmental units, as such principles may be changed from time to time and in conformity with state law and regulations pertaining to cities, 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) authorized, issued and outstanding balance of general obligation debt of the City; (3) the assessed value of the property within the City subject to ad valorem taxation; and 6. 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 holder of a Bond shall be to take such actions as that holder deems necessary, including seeking an order of specific performance from an appropriate court, to compel the City or other obligated person to comply with the Undertaking. 7. 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 the Rule, including, without limitation, the following actions: provided; a. Preparing and filing the annual financial information undertaken to be b. Determining whether any event specified in subsection (a) has occurred, assessing its materiality with respect to the Bonds, and, if material, preparing and disseminating notice of its occurrence; c. Determining whether any person other than the City is an "obligated person" within the meaning of the Rule with respect to the Bonds, and obtaining from such person an undertaking to provide any annual financial information and notice of material events for that person in accordance with the Rule; d. 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 e. Effecting any necessary amendment of the Undertaking. Section 19. Severability. If any section, subsection, paragraph, sentence, clause or phrase of this ordinance or its application to any person or situation should be held to be invalid or unconstitutional for any reason by a court to competent jurisdiction, such invalidity or unconstitutionality shall not affect the validity or constitutionality of the remaining portions of this ordinance or its application to any other person or situation. Section 20. 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 force five days following its passage and publication as required by law. PASSED BY THE CITY COUNCIL OF THE CITY OF TUKWILA, WASHINGTON, at a Special Meeting thereof this day of 2003. Al I EST/AUTHENTICATED: Jane E. Cantu, CMC, City Clerk APPROVED AS TO FORM BY: Office of the City Attorney cmw Tax Bond 95/0310 Steven M. Mullet, Mayor Filed with the City Clerk: Passed by the City Council: Published: Effective Date: Ordinance No.: CAS Number: Ref: 03-086 Agenda Item Title: Original Sponsor: Timeline: Sponsor's Summary: Recommendations: Sponsor: Committee: Administration: I Cost Impact (if known): Fund Source (if known): Meeting Date 1 06 I Discussed. 09 -08 -03 1 Meeting Date 09 -08 -03 Meeting Date 09 -08 -03 Prepared by ARD I Initials 1 or's review 1 Cputncil review IC2, I I I I I I ITEM No. Original Agenda Date: 09 Proposed 2003 Bond Issue Authorize Mayor to sign a Bond Purchase Contract between Lehman Brothers Inc. and the City of Tukwila, for $9,850,000 Limited Tax General Obligations Bonds, Series 2003A; and $2,200,000 Limited Tax General Obligation Bonds Series 2003T (Taxable) Council Admin. X Bond Purchase Contract to be signed immediately after motion carries, while Council stands at ease. The proposed contract relates to the bond issue for the Foster Golf Course project, payment to King County to turn over South Park Bridge and funding for Arterial Street projects. Authorize Mayor to sign the contract. At 6/16/03 Finance Safety Committee meeting. Forwarded to 6/23/03 COW meeting. Same as sponsor. Debt Service for future payments. Golf Course revenues and General Taxes per Planning Model Action Move forward when final bond issue is ready. Attachments Staff report to Council from Alan Doerschel, dated September 4, 2003 Draft agreement with Lehman Brothers, Inc. To: Mayor & City Council From: Alan R. Doerschel ~ ~ Date: September 4, 2003 Subject: Proposed Bond Issue We are ready to actually issue the Bonds approved by the Council on June 23. Attached are the original draft ordinance and a draft contract with Lehman Brothers, Inc. The final ordinance will be available on Monday along with the contract when the financial numbers are determined. This is the same procedure as previous bond issues. Concurrent with the adoption of the Bond Ordinances, the Council would authorize the Mayor to sign a contract with Lehman Brothers, Inc. to purchase the bonds. CITY OF TUKWILA, WASHINGTON $9,850,000 Limited Tax General Obligation Bonds, Series 2003A $2,200,000 Limited Tax General Obligation Bonds, Series 2003T (Taxable) BOND PURCHASE CONTRACT September 8, 2003 City of Tukwila, Washington 6200 Southcenter Boulevard Tukwila, Washington 98188 Ladles and Gentlemen: The undersigned, Lehman Brothers Inc., as underwriter (the "Underwriter") hereby offers to enter into this bond purchase contract (the "Purchase Contract") with the City of Tukwila, Washington (the "City"), which upon the City's acceptance of this offer, shall be in full force and effect in accordance with its terms and shall be binding upon the City and the Underwriter. This offer is made subject to the City's acceptance by execution of this Purchase Contract and its delivery to the Underwriter on or before 11:59 P.M., Pacific Daylight Time, on September 8, 2003, and, if not so accepted, shall be subject to withdrawal by the Underwriter upon notice delivered by the Underwriter to the City at any time before the acceptance hereof by the City. All capitalized terms not otherwise defined herein shall be as defined in Ordinance No. , passed by the City Council on the date hereof (the "Bond Ordinance"). 1. Purchase and Sale. Subject to the terms and conditions and upon the basis of the representations, warranties and agreements hereinafter set forth, the Underwriter hereby agrees to purchase from the City for offering to the public, and the City hereby agrees to sell to the Underwriter for such purpose, all (but not less than all) of $9,850,000 aggregate principal amount of the City's Limited Tax General Obligation Bonds, Series 2003A (the "2003A Bonds") and all (but not less than all) of $2,200,000 aggregate principal amount of the City's Limited Tax General Obligation Bonds, Series 2003T (Taxable) (the "2003T Bonds" and together with the 2003A Bonds, the "Bonds"). The aggregate purchase price of the Bonds shall be the purchase price set forth in Exhibit A hereto, plus interest accrued (as described in Exhibit A) on the Bonds from their date to the Closing Date (as hereinafter defined) computed on the basis of a 360-day year consisting of twelve 30-day months. The Bonds shall be issued and secured pursuant to the terms of the Bond Ordinance. The Bonds shall be dated their date of delivery, and shall have the maturities, bear interest at the rates and be subject to redemption as set forth in Exhibit A attached hereto and incorporated herein by this reference. Interest on the Bonds is payable semiannually on each June 1 and December 1, commencing December 1, 2003. C TY OF WILA BPC 9-2-03 C1TY OF ~.JK':?.LA EPC FPS CO.~.{.ME."[Tg (9 2 ~2).~:: [ 2. The Official Statement and Authorizing Instruments. The Bonds shall be otherwise as described in the Official Statement of the City, dated the date hereof, relating to the Bonds, which, together with the appendices attached thereto, and with such changes therein and supplements thereto that are consented to in writing by the Underwriter, is herein called the "Official Statement." The City authorizes and ratifies the use by the Underwriter of the Official Statement in connection with the public offering and sale of the Bonds. The City also consents to the use by the Underwriter, before the date hereof, of the Preliminary Official Statement, dated August 28, 2003, relating to the Bonds, which together with the appendices attached thereto, is herein referred to as the "Preliminary Official Statement", in connection with the public offering of the Bonds. Promptly after the acceptance hereof by the City, the City shall cause to be delivered to the Underwriter copies of the final Official Statement (together with appendices attached thereto) dated the date hereof. The City covenants and agrees to cause sufficient quantities of the Official Statement to be delivered to the Underwriter to enable the Underwriter to comply with the requirements of Rule 15c2-12 of the Securities Exchange Commission promulgated under the Securities Exchange Act of 1934, as amended ("Rule 15c2-12") and with the requirements of Rule G-32 of the Municipal Securities Rulemaking Board ("MSRB"), without charge, within seven business days of the date hereof and, if the Closing Date is less than seven business days after the date hereof, upon request of the Underwriter, in sufficient time to accompany any confirmation requesting payment from any customers of the Underwriter. The City further covenants and agrees that if, after the date of this Purchase Contract and until 25 days after the end of the underwriting period (as described below), any event shall occur as a result of which it is necessary to amend or supplement the Official Statement to make the statements therein, in the light of the circumstances under which they were made when the Official Statement is delivered to a purchaser, not misleading, or if it is necessary to amend or supplement the Official Statement to comply with law, the City shall notify the Underwriter and provide the Underwriter with such information as it may from time to time request, and to forthwith prepare and furnish, at its own expense (in a form and manner approved by the Underwriter), a reasonable number of copies of either amendments or supplements to the Official Statement so that the statements in the Official Statement as so amended and supplemented will not, in light of the circumstances under which they were made when the Official Statement is delivered to a purchaser, be misleading or so that the Official Statement will comply with applicable law. Unless otherwise notified in writing by the Underwriter, the City can assume that the "end of the undera~iting period" for purposes of Rule 15c2-12 shall be 25 days from the Closing Date. If such notice is so given in writing by the Underwriter, the Underwriter agrees to notify the City in writing following the occurrence of the "end of the underwriting period" as defined in Rule 15c2-12. The City hereby authorizes the Underwriter, and the Underwriter agrees at its own expense, to file one copy of the Official Statement, together with any supplement or amendment thereto, with at least one of the nationally recognized municipal securities information repositories designated by the Securities and Exchange Commission and two copies of the Official Statement (with any required forms) to the MSRB or its designee pursuant to Rule G-36 no later than seven business days following the date hereof. -2- 3. Public Offering. The Underwriter agrees to make a bona fide public offering of all the Bonds initially at the public offering prices (or yields) no higher than those shown on the cover page of the Official Statement, provided that the initial public offering prices (or yields) may be changed, from time to time, by the Underwriter as it deems necessary in connection with the marketing of the Bonds. The Underwriter also reserves the right to offer and sell the Bonds to certain dealers (including the Underwriter and other dealers depositing such Bonds into investment trusts) at prices lower than such initial public offering prices. On the Closing Date, the Underwriter shall provide to the City a certificate stating the initial offering prices (or yields) at which a substantial mount of the Bonds of each maturity were sold or are reasonably expected to be sold to the general public. 4. Delivery of Documents. The City shall deliver to the Underwriter three copies of the final Official Stat~aent manually executed on behalf of the City by an authorized officer of the City no later than the Closing Date, and, as promptly as practicable thereafter, such reasonable number of certified or conformed copies of the foregoing as the undersigned may request. 5. Representations, Covenants and Warranties. The City represents, covenants and warrants to the Underwriter that as of the date hereof: (a) The City is a non-charter code city duly created and validly existing under the Constitution and laws of the state of Washington (the "State"), with full legal right, power and authority (i) to pass the Bond Ordinance and to perform the agreements on its part contained therein, (ii) to enter into this Purchase Contract, and (iii) to issue, sell and deliver the Bonds to the Underwriter as provided herein and in the Official Statement. (b) The Bond Ordinance has been duly passed by the City and no other authorization or approval is required for the execution and delivery of this Purchase Contract or the issuance of the Bonds. (c) The execution and delivery of the Bond Ordinance and this Purchase Contract, the approval by the City of the Bonds, and the application of the proceeds of the 2003A Bonds and the 2003T Bonds for the various purposes described in the Official Statement do not and will not conflict with or result in the breach of any of the terms, ennditions or provisions of, or constitute a default under, any existing law, charter, enurt or administrative regulation, decree or order, or any other agreement, indenture, mortgage, lease or instrument by which the City or any of its respective properties is or may be bound. (d) No authorization or approval is required for the execution and delivery of the Bond Ordinance and this Purchase Contract by the City, except such authorizations or approvals as shall have been obtained on or before the Closing Date, copies of which shall be delivered to the Underwriter on the Closing Date. -3- (e) The City is in compliance with the provisions of the Bond Ordinance and no default exists thereunder and no event has occurred which, with the passing of time or the delivery of notice, would or could constitute a default thereunder. (0 Except for the omission of such information that is dependent upon the final pricing of the Bonds for completion, all as permitted to be excluded by Rule 15c2-12, the Preliminary Official Statement was, as of its date, tree and correct in all material respects and did not contain any untrue statement of a material fact or omit to state any material fact necessary to make the statements and information therein contained, in light of the circumstances under which they were made, not misleading. (g) The Official Statement is and at all times subsequent hereto, up to and including the Closing Date, will be true and correct in all material respects and does not and will not contain any untrue statement of a material fact or omit to state any material fact necessary to make the statements and information therein contained, in light of the circumstances under which they were made, not misleading. (h) The City has duly authorized and approved the execution of the Official Statement by its Mayor or the City's Finance Director, as the Mayor's designee, including any amendments thereto under the terms of this Purchase Contract. (i) The City shall advise the Underwriter promptly of any proposal to amend or supplement the Official Statement and shall not effect any such amendment or supplement without the written consent of the Undem, riter, which consent shall not be unreasonably withheld. The City shall advise the Underwriter promptly of the institution of any proceedings known to it by any gnvemmental agency prohibiting or otherwise affecting the use of the Official Statement in connection with the offering, sale or distribution of the Bonds. (j) The financial information with respect to the City contained in the Official Statement fairly presents the financial position and results of operations of the City as of the dates and for the periods therein set forth, in accordance with generally accepted accounting principles applicable to Washington municipal corporations. Except as otherwise disclosed in the Official Statement, there has been no material adverse change since December31, 2002, in the financial position, results of operations or condition, financial or otherwise, of the City, other than changes in the ordinary course of business or in the normal operation of the City or as otherwise disclosed in the Official Statement. (k) When delivered to The Depository Trust Company for the account of the Underwriter and paid for in full in accordance with the terms of this Purchase Contract, the Bonds (i) will have been duly authorized, executed, issued and delivered by the City, (ii) will constitute valid, legally binding obligations of the City enforceable in accordance with their terms except as enforceability may be limited by bankruptcy, insolvency, reorganization, moratorium and other similar laws affecting creditors rights or contractual obligations generally to the extent constitutionally applicable and by the exercise of judicial discretion in appropriate cases, and (iii)will conform to the descriptions thereof contained in the Official Statement. (1) The proceeds of the sale of the Bonds shall be applied as described in the Official Statement under the caption "SOURCES AND USES OF BOND PROCEEDS." (m) Between the time of acceptance hereof and the Closing Date, the City will not, without the prior written consent of the Underwriter, issue any other limited tax general obligation bonds, securities or obligations. (n) No litigation is pending against the City in any court that (i) in any way challenges the rifles of any principal officer of the City or any member of the City Council to such member's position, (ii) seeks to restrain or enjoin the issuance, sale or delivery of any of the Bonds or the collection of ad valorem taxes pledged or to be pledged to pay the principal of, premium, if any, and interest on the Bonds, (iii) in any way contests or affects the validity of the Bonds, the Bond Ordinance, this Purchase Contract or the collection of such ad valorem taxes or the pledge thereof, (iv) contests in any way the powers of the City or any authority for the issuance of the Bonds or the passage of the Bond Ordinance, (v) contests or affects in any way the ability of the City to establish rates and charges for the use of its golf course facilities, (vi) contests in any way the completeness, accuracy or fairness of the Official Statement, (vii) would, in the event of a final adverse decision, materially adversely affect the financial condition or operations of the City, or (viii) in any material respect might affect adversely the transactions contemplated herein; except for any such litigation, even if determined adversely to the City, that will not materially affect the collection of ad valorem taxes of the City pledged or to be pledged to pay the principal of, premium, if any, and interest on the Bonds and will not materially affect the ability of the City to establish rates and charges for the use of its golf course facilities as contemplated herein, in the Bond Ordinance or in the Official Statement. The City has described to the Underwriter in writing all matters known to the City that create a probability that litigation of the type described in clauses (i) through (viii) of the previous sentence will be commenced against the City. (o) Except as may be set forth in the Official Statement, all approvals, consents, authorizations, certifications and other orders of any governmental authority, board, agency, instrumentality or commission having jurisdiction, or filings with any such entities, which are necessary for the performance by the City of its obligations under the Bonds have been obtained or will be obtained on a timely basis; provided, that no representation or warranty is made by the City with regard to any approvals that may be required for qualification of the Bonds under Blue Sky or other similar laws of any judsdicrion. (p) The City holds ritle to the properties constituting its golf course facilities described in the Official Statement free and clear of all liens and encumbrances which would unduly interfere with the use of such facilities and the -5- collection of revenues of such facilities and the collections of ad valorem taxes by the City, except as otherwise disclosed in the Official Statement. (q) Any certificate or copy of any certificate signed by any official of the City and delivered to the Underwriter pursuant hereto or in connection herewith shall be deemed a representation by the City to the Underwriter as to the truth of the statements therein made. 6. The Closing. At 8:30 ^.M., Pacific Daylight Time, on September 25, 2002, or at such other time or on such earlier or later business day as will have been agreed upon by the City and the Underwriter (the "Closing Date"), the City will deliver or cause to be delivered to the Underwriter the Bonds, duly executed and authenticated, through the facilities of The Depository Trust Company in New York, New York or such other place to be mutually agreed upon by the City and the Underwriter, and will deliver to the Underwriter the documents mentioned in Section 7 hereof, at such place in Seattle, Washington as may be agreed upon by the City and the Underwriter. The Undenvriter will accept such delivery and pay the Purchase Price of the Bonds as set forth in Exhibit A hereto, by wire transfer to the City in immediately available federal funds. The documents mentioned in Section 7 shall be made available for inspection in Seattle, Washington, or at such other location as is mutually agreeable, by the Underwriter on the business day immediately before the Closing Date. 7. Closing Conditions. The Underwriter has entered into this Purchase Contract in reliance upon the representations and warranties herein and the performance by the City of its obligations hereunder, both as of the date hereof and as of the Closing Date. The Underwfiter's obligations under this Purchase Contract are and shall be subject to the performance by the City of its obligations to be performed hereunder and under the documents mentioned in this Section 7, on or before the Closing Date, and also shall be subject to the following conditions: (a) the representations and warranties of the City contained herein, shall be true, enmplete and correct in all material respects at the date hereof and on the Closing Date, as if made on and as of the Closing Date; (b) on the Closing Date (i) the Bond Ordinance shall be in full force and effect, and shall not have been amended, modified or supplemented, except as shall have been agreed by the Underwriter in writing, (ii) the Official Statement shall not have been amended, modified or supplemented, except in such manner as may have beenagreed to in writing by the Underwriter, and (iii) the City shall perform or shall have performed all of its obligations required under or specified in this Purchase Contract, the Official Statement and the Bond Ordinance; (c) on the Closing Date, no default shall have occurred or be existing under the Bond Ordinance, nor shall any event have occurred which, with the passage of time or the giving of notice, shall constitute a default under the Bond Ordinance, nor shall the City be in default in the payment of principal or interest on any of its obligations for borrowed money; and -6- (d) on or before the Closing Date, the Underwriter shall receive the following documents relating to the issuance of the Bonds: (1) copies of the Bond Ordinance certified by the City Clerk as having been duly passed or authorized by the City and as being in full force and effect, together with all changes or amendments so certified; (2) the approving legal opinions of Foster Pepper & Shefelman PLLC, Bond Counsel to the City, as to the Bonds, dated the Closing Date and substantially in those forms included in the Official Statement as Appendix B; (3) a supplemental opinion of Bond Counsel, addressed to the Underwriter and the City, substantially in the form of Exhibit B attached, to the effect that, among certain other matters, that it is not necessary, in connection with the public offering and sale of the Bonds by the Undema-iter, to register any of the Bonds under the Securities Act of 1933, as amended, or to qualify the Bond Ordinance under the Trust Indenture Act of 1939, as amended; (4) a certificate, dated the Closing Date, signed by the City Finance Director, to the effect that (i) the representations and warranties of the City contained herein are true and correct in all material respects on and as of the Closing Date as if made on the Closing Date; and (ii) to the best of such person's knowledge, no event materially adversely affecting the City has occurred since the date of the Official Statement which has not been disclosed therein or by supplement or amendment and which should be disclosed in the Official Statement for the purpose for which it is to be used or for which it is necessary to disclose therein in order to make the statements and information therein not misleading in any material respect; (5) an opinion, dated the Closing Date and addressed to the Underwriter, of Lukins & Annis, P.S., counsel to the Underwriter, to the effect that the Purchase Contract is binding and enforceable upon the Underwriter; (6) evidence, satisfactory to the Underwriter, that the Bonds are rated .... by Moody's Investors Service and rated .... by Fitch, Inc.; (7) a policy of municipal bond insurance insuring the payment of principal and interest on the Bonds by along with an opinion of counsel to that such policy is enforceable; and (8) such additional certificates, instruments and other documents as the Underwriter may reasonably deem necessary to evidence the truth and accuracy as of the Closing Date of the representations of the City and the due performance or satisfaction by the City at or before such time of all agreements then to be performed and all conditions then to be satisfied by the City. -7- 8. Termination of Contract. In recognition of the desire of the City and the Underwriter to effect a successful public offering of the Bonds, and in view of the potential adverse impact of any of the following events on such public offering, the Underwriter shall have the absolute right to terminate this Purchase Contract by notification to the City if at any time on or before the Closing Date: (a) An amendment to the Constitution of the United States or the State shall have been adopted which materially adversely affects the marketability of the Bonds. (b) Legislation is introduced or adopted by the House of Representatives or the Senate of the United States Congress or the State Legislature, or a decision by a Court of the United States, the United States Tax Court or a State Court shall be rendered, or a ruling, regulation or official statement by or on behalf of the Treasury Department of the United States, the Internal Revenue Service or other governmental agency shall be made, with respect to federal or State taxation upon revenues or other income of the general character of the revenues pledged to the payment of the Bonds or upon interest received on bonds of the general character of the Bonds or which would, in the reasonable judgment of the Underwriter, have the effect of changing, directly or indirectly, the federal or State income tax consequences of interest on bonds of the general character of the Bonds in the hands of the holders thereof, which in the reasonable judgment of the Underwriter materially and adversely affects (i) the market price or marketability of the Bonds or (ii) the ability of the Underwriter to enforce contracts for sale of the Bonds. (c) Legislation shall be introduced, by amendment or otherwise, in, or be enacted by, the House of Representatives or the Senate of the United States Congress of the United States, or a decision by a court of the United States shall be rendered, or a stop order, ruling, regulation or official statement by, or on behalf of, the Securities and Exchange Commission or other governmental agency having jurisdiction of the subject matter shall be made or proposed, to the effect that the issuance, offering or sale of obligations of the general character of the Bonds, as contemplated hereby or by the Official Statement, is or would be in violation of any provision of the Securities Act of 1933, as amended and as then in effect, or the Trust Indenture Act of 1939, as amended and as then in effect, or with the purpose or effect of otherwise prohibiting the issuance, offering or sale of obligations of the general character of the Bonds, or the Bonds, as contemplated hereby or by the Official Statement. (d) Any legislation, ordinance, rule or regulation shall be introduced in, or be enacted or promulgated by, any governmental body, department or agency of the United States or in the State, or a decision by any court of competent jurisdiction within the United States or within the State shall be rendered which, in the reasonable judgment of the Underwriter, materially and adversely affects (i) the market price or marketability of the Bonds or (ii) the ability of the Underwriter to enforce contracts for sale of the Bonds. -8- (e) There shall have occurred any outbreak of hostilities or any national or international calamity or crisis, the effect of such outbreak, calamity or crisis, in the reasonable judgment of the Under~vriter, being such as would materially and adversely affect (i) the market price or marketability of the Bonds or (ii) the ability of the Underwriter to enfome contracts for sale of the Bonds. (f) There shall be in full force a general suspension of trading on the New York Stock Exchange or minimum or maximum prices for trading shall have been fixed and be in force or maximum ranges for prices for securities shall have been required and be in force on the New York Stock Exchange, whether by virtue of a determination by the New York Stock Exchange or by order of the Securities and Exchange Commission or any other governmental authority having jurisdiction. (g) A general banking moratorium shall have been declared by federal, New York or State authorities having jurisdiction over banking matters and shall be in force. (h) The Official Statement shall have been amended, modified or supplemented other than as may be agreed to by the Underwriter. (i) Any event shall occur which shall affect the market price or marketability of the Bonds and in the reasonable judgment of the Underwriter, results in the Official Statement containing any untrue statement of a material fact or omitting to state a material fact necessary to make the statements and information therein contained, in light of the circumstances under which they were made, not misleading. (j) There shall have occurred, after the signing hereof, a default with respect to the debt obligations of the City or proceedings under the federal or State bankruptcy laws shall have been instituted by or against the City, the effect of which, in the reasonable judgment of the Underwriter, is such as to materially and adversely affect (i) the market price or marketability of the Bonds or (ii) the ability of the Underwriter to enforce contracts for sale of the Bonds. (k) The ratings of the City by either Moody's Investors Service or Fitch, Inc. in effect as of the date hereof shall be withdrawn or lowered. If the City shall be unable to satisfy the conditions contained in this Purchase Contract or if the obligations of the Underwriter shall be terminated for any reason permitted by this Purchase Contract, this Purchase Contract shall terminate and neither the Underwriter nor the City shall be under a further obligation hereunder, except as set forth in Sections 1 and 9 hereof. 9. Expenses. The City shall pay or cause to be paid from the proceeds of the Bonds or other funds of the City available to it, the expenses incident to the performance of its obligations hereunder, including, but not limited to: (i) the fees and disbursements of the Bond Registrar in connection with the issuance of the Bonds; (ii) the fees and disbursements of Bond Counsel, special counsel to the City, if any, and any other financial advisors, experts or consultants retained by the City in connection with the transactions contemplated hereby; (iii) -9- the cost of obtaining ratings and municipal bond insurance on the Bonds; (iv) the cost of preparing and printing the Preliminary Official Statement and the final Official Statement, and (v) the fees and expenses of Underwriter's counsel. Furthermore, as a fee for performing the services of Underwriter in connection with the issuance and sale of the Bonds, the Underwriter shall deduct from the purchase price of the Bonds the sums described on Exhibit A as an underwriter's discount. All out-of-pocket expenses of the Underwriter, except for expenses of the City advanced by the Underwriter for which the Underwriter will be reimbursed by the City, including travel and other expenses of the Underwriter, shall be paid by the Underwriter. 10. Transcripts. When available, the City shall cause to be delivered to the Underwriter (for the Underwriter and its counsel) three bound transcripts of all proceedings relating to the issuance of the Bonds. 11. Notice. Any notice or other communication to be given to the City under this Purchase Contract may be given by delivering the same in writing to the City, City Hall 6200 Southcenter Boulevard, Tuk-~ila, Washington, Attention: Alan R. Doerschel, and any notice or other communication to be given to the Underwriter under this Purchase Contract may be given by delivering the same in writing to Scan Keatts, Vice-President Lehman Brothers Inc., Bank of America Tower, 701 Fifth Avenue, Suite 7101, Seattle, Washington 98104-7016. 12. Entire Agreement. This Purchase Contract shall constitute the entire agreement between the City and the Underwriter and is made solely for the benefit of the City and the Underwriter (including the successors or assigns of the Underwriter). This Purchase Contract shall become effective when accepted by the City in writing as heretofore specified, shall constitute the entire agreement between the City and the Underwriter and may not be amended or modified except in writing. No other person shall acquire or have any right hereunder by virtue hereof. All the City's representations, warranties and agreements in this Purchase Contract shall remain operative and in full force and effect, regardless of (a) any investigation made by or on behalf of the Underwriter, (b) delivery of and payment for the Bonds hereunder, and (c) any termination of this Purchase Contract. 13. Governing Law and Venue. The validity, interpretation and performance of this Purchase Contract shall be governed by the laws of the State. Any action concerning the enforcement of this contract shall be commenced in the Superior Court of the State of Washington for King County or in the United States District Court for Westem Washington in Seattle, Washington. 14. Counterparts. This Purchase Contract may be executed in several counterparts, each of which shall be regarded as an original and all of which shall constitute one and the same document. LEHMAN BROTHERS INC. By: Sean Keatts Vice President Accepted and agreed to as of the date first above written: CITY OF TUKWILA, WASHINGTON By: Steven Mullet Mayor -11- EXHIBIT A DESCRIPTION OF CERTAIN TERMS OF THE 2003A BONDS City of Tukwila, Washington $9,850,000 Limited Tax General Obligation Bonds, Series 2003A Aggregate Principal Amount: $9,850,000.00 tess aggregate original issue discount: 0 less aggregate underwriter's discount: 0 plus aggregate original issue premium Aggregate Purchase Price: _ Maturity Dates, Principal Amounts, Interest Rates, Yields and Prices: Interest Due June 1 Principal Amount Rate Yield Price 2004 2005 2006 2007 2002 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018 2019 2020 2021 2022 2023 __% Term Bonds due December 1, , to yield % Redemption Provisions: OptionalRedemption of the 2003A Bonds. The 2003A Bonds maturing on .... I TUKWILA BPC (9 2-03]CITY O~: .r~ ~-,~,-.m ~. hr, t, 'cr, o r,~-.,,a',,Aex~'r<. (r~ ,'. r.'~) a^~ I Mandatory Redemption of the 2005A Bonds. In addition to optional redemption, the 2003A Bonds ..... Partial Redemption of the 2003A Bonds. In accordance with the preceding two paragraphs, portions of the principal amount of any 2003A Bond, ..... DESCRIPTION OF CERTAIN TERMS OF THE 2003T BONDS City of Tukwila, Washington $2,200,000 Limited Tax General Obligation Bonds, Series 2003T (Taxable) Aggregate Principal Amount: $2,200,000.00 less aggregate original issue discount: 0 less aggregate underwn2er's discount: 0 plus aggregate original issue premium Aggregate Purchase Price: $ Maturity Dates, Principal Amounts, Interest Rates, Yields and Prices: $ __% Term Bonds due December 1,. , to yield % Redemption Provisions: OptionalRedemption of the2003TBonds. The 2003T Bonds maturing on .... Mandatory Redemption of the 2003T Bonds. In addition to optional redemption, the 2003T Bonds ..... Partial Redemption of the 2003T Bonds. In accordance with the preceding two paragraphs, portions of the principal amount of any 2003T Bond, ..... EXHIBIT B [Letterhead of Foster Pepper & Shefelman PLLC] September 25, 2003 City of Tukwila, Washington 6200 Southcenter Boulevard Tukwila, Washington 98188 Lehman Brothers Inc. 701 Fifth Avenue, Suite 7101 Seattle, Washington 98104 Re: City of Tukwila, Washington $9,850,000 Limited Tax General Obligation Bonds, Series 2003A and $2,200,000 Limited Tax General Obligation Bonds, Series 2003T {Taxable) Dear Ladies and Gentlemen: At the request of the City of Tukwila, Washington (the "City"), we have served as bond counsel to the City in connection with the issuance of $9,850,000 aggregate principal amount of the City's Limited Tax General Obligation Bonds, Series 2003A (the "2003A Bonds") and $2,200,000 aggregate principal amount of the City's Limited Tax General Obligation Bonds, Series 2003T (Taxable) (the "2003T Bonds" and together with the 2003A Bonds, the "Bonds"). All capitalized terms used but not defined herein shall have the respective meanings ascribed thereto in Ordinance No.__ of the City (the "Bond Ordinance") passed by the City Council on September 8, 2003, or in the bond purchase contract, dated September 8, 2003 (the "Purchase Contract"), between the City and Lehman Brothers Inc., as Underwriter for the Bonds. In such connection we have examined a certified transcript of proceedings relating to the issuance of the Bonds and such letters, documents and materials relating to the Bonds, including the Bond Ordinance, certain portions (referred to hereinafter) of the Preliminary Official Statement dated August 28, 2003 and the Official Statement dated September __, 2003 and such other documents and materials as we have deemed relevant and necessary in order to enable us to express the opinions set forth below. This opinion is being delivered to each of you pursuant to the requirements of Section 7(d)(3) of the Purchase Contract. Based upon such examination, it is our opinion that: 1. The City has the requisite right and power under the Constitution and the laws of the state of Washington (the "State") to pass the Bond Ordinance and the Bond Ordinance has been duly and lawfully passed by the City, is in full force and effect, is valid and binding on the City and is enforceable in accordance with its terms except to the extent that the enforceability thereof may be limited by bankruptcy, insolvency, or other similar laws affecting the rights and remedies of creditors and principles of equity if equitable principles are sought. 2. The City has all requisite fight, power and authority to execute and deliver the Purchase Contract, to perform its obligations thereunder and to carry out the transactions described therein; the Purchase Contract has been duly and lawfully authorized, executed and delivered by the City, is in full force and effect, and, assuming due authorization, execution and delivery by the Underwriter, is the legal, valid and binding obligation of the City enforceable against it in accordance with its terms except to the extent that the enforceability thereof may be limited by any applicable bankruptcy, insolvency, reorganization, moratorium or similar laws affecting the rights and remedies of creditors or as to the availability of any particular equitable remedy. 3. All authorizations, approvals or other actions required for the valid execution and delivery by the City of the Bond Ordinance and the Purchase Contract have been obtained and no authorization, approval or other action of the United States of America, the State or any other governmental authority or agency is required therewith, except as otherwise disclosed in the Official Statement. The execution and delivery by the City of the Purchase Contract and the Bonds, and the passage by the City of the Bond Ordinance does not conflict with any existing law of the State or of the United States or the Bond Ordinance. 4. The City has duly ratified the distribution of the Preliminary Official Statement and has duly authorized the execution and delivery of the Official Statement and the distribution thereof by the Underwriter. 5. The statements contained in the Official Statement under the captions "THE BONDS;" "SOURCES AND USES OF BOND PROCEEDS;" "TAXING POWER AND LIMITATIONS - 'Levy Limitation' and 'Initiatives and Referenda;' "and "LEGAL AND TAX INFORMATION- 'Tax Exemption of the Series 2003A Bonds,' 'Certain Other Federal Tax Consequences Relating to the Series 2005A Bonds,' 'Tax Treatment of the Series 2003T Bonds' and 'Continuing Disclosure'," insofar as the statements under these captions purport to describe certain provisions of the Bonds, the Bond Ordinance, the laws of the State of Washington, or federal securities and federal tax laws, are true and correct in all material respects; provided, however, that no opinion is expressed as to any statistical or financial information contained therein or information regarding [Insurance Company] or The Depository Trust Company. 6. Although we have not verified and are not passing upon, and do not assume any responsibility for, the accuracy, completeness or fairness of the information contained in the Official Statement, including the appendices thereto (except to the extent expressly set forth in paragraph 5 above), we have participated in the preparation of the Official Statement with representatives of the City's Finance Department and, in the course of such participation, but without having undertaken to determine independently the accuracy, completeness or fairness of the statements contained in the Official Statement no facts have come to our attention that caused us to believe that the Official Statement (except for financial and statistical data contained therein, as to which we express no view) as of its date, or as of the date hereof, contained or contains any untrue statement of a material fact or omitted or omits to state any material fact required to be stated therein for the purposes for which the Official Statement is to be used or necessary in order to make the statements therein, in light of the circumstances under which they were made, not misleading. 7. The Bond Ordinance, the Purchase Contract, the 2003A Bonds and the 2003T Bonds conform in all material respects as to form and tenor with the terms and provisions thereof as summarized and set out in the Official Statement. 8. The Bonds are exempt securities within the meaning of Section 3(a)(2) of the Securities Act of 1933, as amended, and of Section 304(a)(4) of the Trust Indenture Act of 1939, as amended; and it is not necessary in connection with the sale of the Bonds to the public to register the Bonds under the Securities Act of 1933, as amended, or to qualify the Bond Ordinance under the Trust Indenture Act of 1939, as amended. The foregoing opinion is being delivered solely to you in connection with the execution and delivery of the Bonds and may not be relied on by you for any other purpose or by any other person for any purpose without our written consent. No attorney-client relationship has existed or exists between our firm and any addressee hereof other than the City in connection with the Bonds or by virtue of this letter. We consent to the references to us contained in the Official Statement. Respectfully submitted, FOSTERPEPPER & SHEFELMANPLLC