Loading...
HomeMy WebLinkAboutRegular Council Agenda Packet - 06 May 2013 - PdfAGENDA RENTON CITY COUNCIL REGULAR MEETING May 6, 2013 Monday, 7 p.m. 1.CALL TO ORDER AND PLEDGE OF ALLEGIANCE 2.ROLL CALL 3.PROCLAMATION a. Municipal Clerks Week - May 5 to 11, 2013 4.SPECIAL PRESENTATION a. Muscular Dystrophy Association (MDA) "Fill the Boot" Recognition to Fire & Emergency Services Department 5.ADMINISTRATIVE REPORT 6.AUDIENCE COMMENT (Speakers must sign up prior to the Council meeting. Each speaker is allowed five minutes. The first comment period is limited to one-half hour. The second comment period later on in the agenda is unlimited in duration.) When you are recognized by the Presiding Officer, please walk to the podium and state your name and city of residence for the record, SPELLING YOUR LAST NAME. NOTICE to all participants: pursuant to state law, RCW 42.17A.555, campaigning for any ballot measure or candidate in City Hall and/or during any portion of the council meeting, including the audience comment portion of the meeting, is PROHIBITED. 7.CONSENT AGENDA The following items are distributed to Councilmembers in advance for study and review, and the recommended actions will be accepted in a single motion. Any item may be removed for further discussion if requested by a Councilmember. a. Approval of Council meeting minutes of 4/29/2013. Council concur. b. Administrative Services Department requests approval of an ordinance authorizing the issuance of a 15-year Qualified Energy Conservation Bond (QECB) through private placement not to exceed $3.2 million to finance the conversion of approximately 3,900 High Pressure Sodium (HPS) street lights to Light-Emitting Diode (LED) lights, with annual debt service payments of approximately $220,000, which will be paid from energy cost savings projected at $270,000 per year. Refer to Finance Committee. c. Community and Economic Development Department recommends the appointment of Lynn Wallace, President and CEO of the Renton Chamber of Commerce (replacing Sabrina Mirante), to the Lodging Tax Advisory Committee; and ratification of the existing membership as follows: City Councilmember Marcie Palmer; Preeti Shridhar, City of Renton Deputy Public Affairs Administrator; Brent Camman, General Manager of Marriott Spring Hill and Marriott Towne Place; and Kathy Madison, General Manager of Hilton Garden Inn. Council concur. d. Community Services Department recommends approval of amendments to existing Park Rules and Regulations that clarify rules, identify changing operations and activities, and authorize Page 1 of 135 enforcement of the regulations. Refer to Community Services Committee. e. Community Services Department requests authorization to acquire the two-parcel May Creek Trailhead property in the amount of $370,000 to provide parking and access to the May Creek Trail; and authorization to adjust the budget as required. Council concur. f. Transportation Systems Division recommends approval of an amendment to CAG-12-120, interlocal agreement with the Washington State Department of Enterprise Services (DES), in the amount of $4,305,693 (Renton's share approximately $3,216,681 after grants), which includes the Energy Services Proposal from Ameresco Quantum, Inc. (AQ) and management and monitoring services to convert High Pressure Sodium (HPS) street lights to Light-Emitting Diode (LED) lights; and requests authorization for the administration to pursue the issuance of a Qualified Energy Conservation Bond (QECB) to provide funding for this project. Refer to Transportation (Aviation) Committee. g. Utilities Systems Division submits CAG-12-083, Liberty Lift Station project; and requests approval of the project, authorization for final pay estimate in the amount of $1,095, commencement of a 60-day lien period, and release of retained amount of $17,117.25 to Equity Builders, LLC, contractor, if all required releases are obtained. Council concur. 8.UNFINISHED BUSINESS Topics listed below were discussed in Council committees during the past week. Those topics marked with an asterisk (*) may include legislation. Committee reports on any topics may be held by the Chair if further review is necessary. a. Community Services Committee: 2013 Neighborhood Grant Applications b. Finance Committee: Vouchers; Entertainment Device License Fee Code Amendment* c. Public Safety Committee: Expanding Photo Enforcement Program 9.RESOLUTIONS AND ORDINANCES Ordinance for first reading: a. Entertainment device license fee code amendment (See 8.b.) 10.NEW BUSINESS (Includes Council Committee agenda topics; call 425-430-6512 for recorded information.) 11.AUDIENCE COMMENT 12.ADJOURNMENT Page 2 of 135 COMMITTEE OF THE WHOLE AGENDA (Preceding Council Meeting) 7TH FLOOR CONFERENCING CENTER May 6, 2013 Monday, 6 p.m. Regional Issues (briefing) • Hearing assistance devices for use in the Council Chambers are available upon request to the City Clerk • CITY COUNCIL MEETINGS ARE TELEVISED LIVE ON GOVERNMENT ACCESS CHANNEL 21 AND ARE RECABLECAST: Tues. & Thurs. at 11 AM & 9 PM, Wed. & Fri at 9 AM & 7 PM and Sat. & Sun. at 1 PM & 9 PM Page 3 of 135 3a. - Municipal Clerks Week - May 5 to 11, 2013 Page 4 of 135 CITY OF RENTON COUNCIL AGENDA BILL Subject/Title: LED Street Light Conversion Financing Plan Meeting: Regular Council - 06 May 2013 Exhibits: Issue Paper Private Placement Term Sheet/Preliminary Debt Service Schedule Preliminary Draft Ordinance Submitting Data: Dept/Div/Board: Administrative Services Staff Contact: Iwen Wang Recommended Action: Refer to Finance Committee Fiscal Impact: Expenditure Required: $ $3,200,000 Transfer Amendment: $ Amount Budgeted: $ Revenue Generated: $ Total Project Budget: $ City Share Total Project: $ SUMMARY OF ACTION: As separately presented, the city is proposing to convert approximately 3,900 street lights to LED lights at a total cost of $4.3 million. The LED Light Conversion Project will be funded through a combination of $1.1 million in grants and $3.2 million in long term financing by issuing Qualified Energy Conservation Bonds (QECB), a version of general obligation bonds. The City requested and received $3.2 million in QECB allocation from the State Housing Finance Commission for the LED Light Conversion Project. Staff recommend a 15-year issue with net annual debt service payment projected at around $220k. The debt service will be paid using the energy cost savings, estimated at about $270k a year. In addition, with the relatively small amount to be financed, staff recommends using private placement option for this issue. STAFF RECOMMENDATION: Adopt an ordinance authorizing the issuance of a 15-year QECB through private placement with terms substantially the same as outlined in the attached Term Sheet. 7b. - Administrative Services Department requests approval of an ordinance Page 5 of 135 ADMINISTRATIVE SERVICES DEPARTMENT M E M O R A N D U M DATE:April 30, 2013 TO:Randy Corman, Council President Members of the Renton City Council CC:Denis Law, Mayor FROM:Iwen Wang, Administrative Services Administrator SUBJECT:LED Street Light Conversion Financing Plan ISSUE: Should the City issue $3.2 million in Qualified Energy Conservation Bonds (QECB) through private placement, based on the proposed terms, to finance the conversion of approximately 3,900 High Pressure Sodium (HPS) street lights to Light-Emitting Diode (LED) lights? RECOMMENDATION: Approve proposed ordinance and financing plan for the proposed street light conversion project. BACKGROUND SUMMARY: As presented to the Council Transportation/Aviation Committee, the City is proposing to convert all City-owned street lights to LED lights in 2013 at a total cost of $4.3 million. The project will be funded through a combination of grants from the State Department of Commerce ($500k), Energy Incentive Program from Puget Sound Energy ($589k), and long term financing by issuing QECB, a version of general obligation bonds. QECB is part of a federal “green community” incentive program that allows government entities to issue long term bonds to finance energy conservation projects for public and private (limited to 30% of allocated amount) facilities. The program requires the bonds be issued as taxable bonds with a federal direct payment (to bond issuers) or tax credit (to bond holders) based on 70% of yields on outstanding bonds with an investment grade rating between A and BBB. The City requested and received $3.2 Million in QECB allocation from the State Housing Finance Commission for the LED Light Conversion Project. Based on the current market conditions, the net interest cost after federal rebate is between 0% to 0.6% for a 15-year bond; and just below 1% for a 20-year bond. The annual debt service payments are approximately $220k and $180k, for 15- and 20-year bonds, respectively. The debt service will be paid using the energy cost savings that are estimated to be $270k a year. Therefore, the transaction will result in a positive impact for the City. 7b. - Administrative Services Department requests approval of an ordinance Page 6 of 135 LED Street Light Financing Page 2 of 3 April 30, 2013 One caveat about the direct federal rebate program is that it is subject to federal budget and legislation changes, such as the sequestration. Under current sequestration conditions, the federal rebates are set to be reduced by 8.9% this year, same level of reduction as other federal programs. Should this occur during the term of the bonds, the reduction in the rebate would range from $8,900 in the first year to $560 in the final year. To make sure the City will not pay more than tax-exempt rates in any circumstances, an “extraordinary optional redemption” provision will be included in the bonds to allow the City to call the bonds at face value and reissue tax exempt bonds if necessary. In addition, with the relatively small amount being financed, staff has been looking at issuing the bonds through private placements instead of public sales. The preliminary quotes show that the rates between the two options are competitive (with private placement showing $5k savings over 15 years) and the cost of issuance will be lower for private placements (no bond rating or official statement preparation costs). Therefore, staff recommends using private placement option for this issue. CONCLUSION: Converting the City’s HPS streetlights to LED will generate significant energy and maintenance cost savings to the City. The QECB is the most cost effective way to finance the conversion; and private placement is a cost effective way to issue the bonds. Staff recommends adopting an ordinance authorizing the issuance of QECB through private placement with terms substantially the same as outlined in the attached “Term Sheet” and the preliminary amortization schedule. Attachment: 1.Piper Jaffray Private Placement Term Sheet/Preliminary Amortization Schedule 2.Preliminary draft ordinance. 7b. - Administrative Services Department requests approval of an ordinance Page 7 of 135 LED Street Light Financing Page 3 of 3 April 30, 2013 7b. - Administrative Services Department requests approval of an ordinance Page 8 of 135 Attachment 1:  Term Sheet        TRANSACTION TERMS Renton, WA QECB (4/22/13) Proceeds/Loan/Debt: Approximately $3,200,000. Purchaser will allow for +/-10% of Proceeds between Commitment and Funding. The Issuer or Borrower: City of Renton, WA (the “City”) or an applicable Conduit Issuer. Securities Offered: The Issuer will issue approximately $3.2 million limited tax general obligation Notes/Bonds under the Qualified Energy Conservation Bond (QECB)—Direct Payment program. Security: Limited Tax General Obligation of the City. Purchase Price: 100%. Coupon: The greater of 3.00% or +1.70% to the Index to be locked at Commitment. Index: Average Life Interpolated Treasury. As of April 22, 2015, the Index is 1.3%. Maturity Date: 15 years. Average Life: 8 years. Optional Redemption: Open at anytime at the Makewhole Amount. Makewhole Amount: The Make Whole Amount is the excess, if any, of (i) the sum of the present values (determined as of the date of prepayment) of all remaining scheduled payments of principal and interest on the Note from the date of prepayment to the maturity date, discounted at a rate equal to the yield on the interpolated US Treasury obligation having a weighted average to that of the Note at the time of prepayment plus 50 basis points, over (ii) the principal amount of the Note being prepaid. Extraordinary Optional Redemption: At Par plus accrued interest, if the United States Department of the Treasury (the “Treasury”) should cease, or announce its intention to cease, the QECB Program subsidy or if there is a QECB disqualification event. Starting at the beginning of year 3 of the Term, the Bonds can be prepaid at par if the Treasury shall reduce the subsidy from the current 70% to 35% or less. Extraordinary Mandatory Redemption: At Par plus accrued interest, if on any date that is within 3 years from the date of issuance of the QECB Bond, it is determined that the Borrower has expended or will expend less than 100 7b. - Administrative Services Department requests approval of an ordinance Page 9 of 135 LED Street Light Financing  Page 2 of 2  April 30, 2013  h:\finance\council\2013\ip ‐ led term sheet.docx  percent of the “available project proceeds.” The amount of Proceeds not expended will be subject to the Redemption. Interest Payments: Semi-annual on a 30/360 basis. Method of Sale: The Notes will be sold in a private placement to institutional investors who are accredited investors (accredited investors constitute investors who qualify as accredited investors under paragraphs 1,2,3, or 7 of Rule 501(a) of the Securities Act of 1933). The Notes will not be registered with the Securities and Exchange Commission or any other regulatory body. Accordingly, the Notes will not be transferable unless a subsequent transfer is exempt from the registration requirements of the Securities Act of 1933 (the “1933 Act”). Investors should consult with their counsel as to the applicable requirements for an investor to avail itself of any exemption under the 1933 Act. Each investor will be required to make certain representations in connection with its purchase of the Notes. Rate Lock: At Commitment. Purchaser shall endeavor for a Commitment within 3-5 business days of verbal award by the City. Closing/Funding Date: July 1, 2013. Trustee: None. Special Counsel to Bond Purchasers: To be determined. Placement Agent: Piper Jaffray. Subject to: 1. Closing on loan documents usual and customary in the Private Placement market for these transactions. 2. This is not a Commitment. 3. Formal approval by Renton City Council. Agreed and Accepted by the Purchaser: _____________________________________________ Name/Title/Company (Please Print) _____________________________________________ Signature/Date   7b. - Administrative Services Department requests approval of an ordinance Page 10 of 135 Prepared by Piper Jaffray & Co. TABLE OF CONTENTS City of Renton Taxable QECB Private Placement, Series 2013 ********************************************************* Rate as of May 1, 2013 Spread Lock Effective Through July 1, 2013 QTCB of 4.28% ********************************************************* Report Page Sources and Uses of Funds ............................1 Cost of Issuance .................................2 Bond Pricing ..................................3 Bond Debt Service ................................4 Net Debt Service ................................5 Bond Summary Statistics .............................6 7b. - Administrative Services Department requests approval of an ordinance Page 11 of 135 Prepared by Piper Jaffray & Co. Page 1 SOURCES AND USES OF FUNDS City of Renton Taxable QECB Private Placement, Series 2013 ********************************************************* Rate as of May 1, 2013 Spread Lock Effective Through July 1, 2013 QTCB of 4.28% ********************************************************* Dated Date 07/01/2013 Delivery Date 07/01/2013 Sources: Bond Proceeds: Par Amount 3,200,000.00 3,200,000.00 Uses: Project Fund Deposits: Project Fund 3,167,400.00 Delivery Date Expenses: Cost of Issuance 32,600.00 3,200,000.00 7b. - Administrative Services Department requests approval of an ordinance Page 12 of 135 Prepared by Piper Jaffray & Co. Page 2 COST OF ISSUANCE City of Renton Taxable QECB Private Placement, Series 2013 ********************************************************* Rate as of May 1, 2013 Spread Lock Effective Through July 1, 2013 QTCB of 4.28% ********************************************************* Cost of Issuance $/1000 Amount Loan Placement Agent 7.00000 22,400.00 Bond Counsel 2.81250 9,000.00 Loan Provider's Counsel 0.37500 1,200.00 10.18750 32,600.00 7b. - Administrative Services Department requests approval of an ordinance Page 13 of 135 Prepared by Piper Jaffray & Co. Page 3 BOND PRICING City of Renton Taxable QECB Private Placement, Series 2013 ********************************************************* Rate as of May 1, 2013 Spread Lock Effective Through July 1, 2013 QTCB of 4.28% ********************************************************* Maturity Bond Component Date Amount Rate Yield Price Term Bond: 07/01/2028 3,200,000 3.040% 3.040% 100.000 3,200,000 Dated Date 07/01/2013 Delivery Date 07/01/2013 First Coupon 01/01/2014 Par Amount 3,200,000.00 Original Issue Discount Production 3,200,000.00 100.000000% Underwriter's Discount Purchase Price 3,200,000.00 100.000000% Accrued Interest Net Proceeds 3,200,000.00 7b. - Administrative Services Department requests approval of an ordinance Page 14 of 135 Prepared by Piper Jaffray & Co. Page 4 BOND DEBT SERVICE City of Renton Taxable QECB Private Placement, Series 2013 ********************************************************* Rate as of May 1, 2013 Spread Lock Effective Through July 1, 2013 QTCB of 4.28% ********************************************************* Dated Date 07/01/2013 Delivery Date 07/01/2013 Annual Period Debt Debt Ending Principal Coupon Interest Service Service 01/01/2014 48,640 48,640 07/01/2014 210,000 3.040% 48,640 258,640 307,280 01/01/2015 45,448 45,448 07/01/2015 210,000 3.040% 45,448 255,448 300,896 01/01/2016 42,256 42,256 07/01/2016 210,000 3.040% 42,256 252,256 294,512 01/01/2017 39,064 39,064 07/01/2017 210,000 3.040% 39,064 249,064 288,128 01/01/2018 35,872 35,872 07/01/2018 210,000 3.040% 35,872 245,872 281,744 01/01/2019 32,680 32,680 07/01/2019 215,000 3.040% 32,680 247,680 280,360 01/01/2020 29,412 29,412 07/01/2020 215,000 3.040% 29,412 244,412 273,824 01/01/2021 26,144 26,144 07/01/2021 215,000 3.040% 26,144 241,144 267,288 01/01/2022 22,876 22,876 07/01/2022 215,000 3.040% 22,876 237,876 260,752 01/01/2023 19,608 19,608 07/01/2023 215,000 3.040% 19,608 234,608 254,216 01/01/2024 16,340 16,340 07/01/2024 215,000 3.040% 16,340 231,340 247,680 01/01/2025 13,072 13,072 07/01/2025 215,000 3.040% 13,072 228,072 241,144 01/01/2026 9,804 9,804 07/01/2026 215,000 3.040% 9,804 224,804 234,608 01/01/2027 6,536 6,536 07/01/2027 215,000 3.040% 6,536 221,536 228,072 01/01/2028 3,268 3,268 07/01/2028 215,000 3.040% 3,268 218,268 221,536 3,200,000 782,040 3,982,040 3,982,040 7b. - Administrative Services Department requests approval of an ordinance Page 15 of 135 Prepared by Piper Jaffray & Co. Page 5 NET DEBT SERVICE City of Renton Taxable QECB Private Placement, Series 2013 ********************************************************* Rate as of May 1, 2013 Spread Lock Effective Through July 1, 2013 QTCB of 4.28% ********************************************************* Period Total Net Annual Ending Principal Coupon Interest Debt Service QECB Subsidy Debt Service Net D/S 01/01/2014 48,640 48,640 -47,936.00 704.00 07/01/2014 210,000 3.040% 48,640 258,640 -47,936.00 210,704.00 211,408.00 01/01/2015 45,448 45,448 -44,790.20 657.80 07/01/2015 210,000 3.040% 45,448 255,448 -44,790.20 210,657.80 211,315.60 01/01/2016 42,256 42,256 -41,644.40 611.60 07/01/2016 210,000 3.040% 42,256 252,256 -41,644.40 210,611.60 211,223.20 01/01/2017 39,064 39,064 -38,498.60 565.40 07/01/2017 210,000 3.040% 39,064 249,064 -38,498.60 210,565.40 211,130.80 01/01/2018 35,872 35,872 -35,352.80 519.20 07/01/2018 210,000 3.040% 35,872 245,872 -35,352.80 210,519.20 211,038.40 01/01/2019 32,680 32,680 -32,207.00 473.00 07/01/2019 215,000 3.040% 32,680 247,680 -32,207.00 215,473.00 215,946.00 01/01/2020 29,412 29,412 -28,986.30 425.70 07/01/2020 215,000 3.040% 29,412 244,412 -28,986.30 215,425.70 215,851.40 01/01/2021 26,144 26,144 -25,765.60 378.40 07/01/2021 215,000 3.040% 26,144 241,144 -25,765.60 215,378.40 215,756.80 01/01/2022 22,876 22,876 -22,544.90 331.10 07/01/2022 215,000 3.040% 22,876 237,876 -22,544.90 215,331.10 215,662.20 01/01/2023 19,608 19,608 -19,324.20 283.80 07/01/2023 215,000 3.040% 19,608 234,608 -19,324.20 215,283.80 215,567.60 01/01/2024 16,340 16,340 -16,103.50 236.50 07/01/2024 215,000 3.040% 16,340 231,340 -16,103.50 215,236.50 215,473.00 01/01/2025 13,072 13,072 -12,882.80 189.20 07/01/2025 215,000 3.040% 13,072 228,072 -12,882.80 215,189.20 215,378.40 01/01/2026 9,804 9,804 -9,662.10 141.90 07/01/2026 215,000 3.040% 9,804 224,804 -9,662.10 215,141.90 215,283.80 01/01/2027 6,536 6,536 -6,441.40 94.60 07/01/2027 215,000 3.040% 6,536 221,536 -6,441.40 215,094.60 215,189.20 01/01/2028 3,268 3,268 -3,220.70 47.30 07/01/2028 215,000 3.040% 3,268 218,268 -3,220.70 215,047.30 215,094.60 3,200,000 782,040 3,982,040 -770,721.00 3,211,319.00 3,211,319.00 7b. - Administrative Services Department requests approval of an ordinance Page 16 of 135 Prepared by Piper Jaffray & Co. Page 6 BOND SUMMARY STATISTICS City of Renton Taxable QECB Private Placement, Series 2013 ********************************************************* Rate as of May 1, 2013 Spread Lock Effective Through July 1, 2013 QTCB of 4.28% ********************************************************* Dated Date 07/01/2013 Delivery Date 07/01/2013 Last Maturity 07/01/2028 Arbitrage Yield 0.044000% True Interest Cost (TIC) 0.044000% Net Interest Cost (NIC) 3.040000% All-In TIC 0.171910% Average Coupon 3.040000% Average Life (years) 8.039 Duration of Issue (years) 7.518 Par Amount 3,200,000.00 Bond Proceeds 3,200,000.00 Total Interest 782,040.00 Net Interest 782,040.00 Total Debt Service 3,982,040.00 Maximum Annual Debt Service 307,280.00 Average Annual Debt Service 265,469.33 Underwriter's Fees (per $1000) Average Takedown Other Fee Total Underwriter's Discount Bid Price 100.000000 Par Average Average Bond Component Value Price Coupon Life Term Bond 3,200,000.00 100.000 3.040% 8.039 3,200,000.00 8.039 All-In Arbitrage TIC TIC Yield Par Value 3,200,000.00 3,200,000.00 3,200,000.00 + Accrued Interest + Premium (Discount) - Underwriter's Discount - Cost of Issuance Expense -32,600.00 - Other Amounts Target Value 3,200,000.00 3,167,400.00 3,200,000.00 Target Date 07/01/2013 07/01/2013 07/01/2013 Yield 0.044000% 0.171910% 0.044000% 7b. - Administrative Services Department requests approval of an ordinance Page 17 of 135 Attachment 2: Draft Bond Ordinance CITY OF RENTON, WASHINGTON LIMITED TAX GENERAL OBLIGATION BOND, 2013 (TAXABLE DIRECT-PAY QUALIFIED ENERGY CONSERVATION BOND) ORDINANCE NO. _____ AN ORDINANCE OF THE CITY COUNCIL OF THE CITY OF RENTON, WASHINGTON, AUTHORIZING THE ISSUANCE AND SALE OF A LIMITED TAX GENERAL OBLIGATION BOND OF THE CITY IN THE PRINCIPAL AMOUNT OF NOT TO EXCEED $3,200,000 FOR THE PURPOSE OF FINANCING STREETLIGHT IMPROVEMENTS AS PART OF A GREEN COMMUNITY PROGRAM; PROVIDING THE FORM OF THE BOND; AND AUTHORIZING THE SALE OF THE BOND TO ____________________. Passed _________________, 2013 PREPARED BY: PACIFICA LAW GROUP LLP Seattle, Washington 7b. - Administrative Services Department requests approval of an ordinance Page 18 of 135 CITY OF RENTON ORDINANCE NO. _______ TABLE OF CONTENTS* Page Section 1.Definitions and Interpretation of Terms ..................................................................2 Section 2.Authorization of the Project ....................................................................................5 Section 3.Authorization of the Bond .......................................................................................5 Section 4.Registration, Exchange and Payments .....................................................................5 Section 5.Form of Bond ...........................................................................................................7 Section 6.Execution of Bond ....................................................................................................9 Section 7.Application of Bond Proceeds ................................................................................10 Section 8.Tax Covenants ........................................................................................................10 Section 9.Pledge of Funds and Credit; General Obligation ...................................................11 Section 10.Prepayment and Redemption ................................................................................12 Section 11.Sale of the Bond .....................................................................................................14 Section 12.Ongoing Disclosure; Covenants .............................................................................14 Section 13.Lost, Stolen or Destroyed Bond .............................................................................15 Section 14.Severability; Ratification ........................................................................................15 Section 15.Effective Date of Ordinance ...................................................................................16 Exhibit A: Purchaser’s Proposal * This Table of Contents is provided for convenience only and is not a part of this ordinance. 7b. - Administrative Services Department requests approval of an ordinance Page 19 of 135 CITY OF RENTON, WASHINGTON ORDINANCE NO. _____ AN ORDINANCE OF THE CITY COUNCIL OF THE CITY OF RENTON, WASHINGTON, AUTHORIZING THE ISSUANCE AND SALE OF A LIMITED TAX GENERAL OBLIGATION BOND OF THE CITY IN THE PRINCIPAL AMOUNT OF NOT TO EXCEED $3,200,000 FOR THE PURPOSE OF FINANCING STREETLIGHT IMPROVEMENTS AS PART OF A GREEN COMMUNITY PROGRAM; PROVIDING THE FORM OF THE BOND; AND AUTHORIZING THE SALE OF THE BOND TO ____________________. WHEREAS, the City Council (the “Council”) of the City of Renton, Washington (the “City”), has determined that it is in the best interest of the City that the City adopt a program to finance capital expenditures to improve certain existing public streetlights located throughout the City in order to promote energy conservation and efficiency for the benefit of the general public (the “Program”); and WHEREAS, Section 54D of the Internal Revenue Code of 1986, as amended (the “Code”), authorizes the issuance of “Qualified Energy Conservation Bonds” for capital expenditures incurred for “qualified conservation purposes,” including but not limited to implementing a green community program under Section 54D(f)(1)(A)(ii) of the Code; and WHEREAS, the City has received from the Washington State Department of Commerce a reallocation of up to $3,200,000 of Qualified Energy Conservation Bond volume cap for purposes of implementing the Program; and WHEREAS, it is in the best interest of the City to issue a limited general obligation bond in the principal amount of not to exceed $3,200,000 (the “Bond”) to finance costs of implementing the Program, including financing costs related to replacing existing high-pressure luminaries with light emitting diode luminaries (the “Project”); and 7b. - Administrative Services Department requests approval of an ordinance Page 20 of 135 -2-05/02/13 WHEREAS, the Bond authorized herein shall be sold as a Qualified Energy Conservation Bond to _______________ (the “Purchaser”) pursuant to the purchaser officer set forth in Exhibit A attached hereto (the “Proposal”), as herein provided; and WHEREAS, it is deemed necessary and advisable that the City accept the Purchaser’s offer and issue the Bond as set forth herein; NOW, THEREFORE, THE CITY COUNCIL OF THE CITY OF RENTON, WASHINGTON DOES ORDAIN AS FOLLOWS: Section 1.Definitions and Interpretation of Terms. (a)Definitions.As used in this ordinance, the following words shall have the following meanings: Bond means the Limited Tax General Obligation Bond, 2013 (Taxable Direct-Pay Qualified Energy Conservation Bond) authorized to be issued by the City pursuant to this ordinance. Bond Counsel means Pacifica Law Group LLP, Seattle, Washington. Bond Fund means the “Bond Redemption Fund” authorized to be created pursuant to Section 9 of this ordinance. Bond Register means the registration records for the Bond maintained by the Bond Registrar. Bond Registrar means the Finance Director of the City, whose duties include registering and authenticating the Bond, maintaining the Bond Register, transferring ownership of the Bond, and paying the principal of and interest on the Bond. 7b. - Administrative Services Department requests approval of an ordinance Page 21 of 135 -3-05/02/13 City means the City of Renton, Washington, a municipal corporation duly organized and existing under the laws of the State of Washington. City Council or Council means the City Council of the City as the general legislative authority of the City, as the same shall be duly and regularly constituted from time to time. Code means the Internal Revenue Code of 1986, as amended, and shall include all applicable regulations and rulings relating thereto. Federal Tax Certificate means the certificate regarding the status of the Bonds as Qualified Energy Conservation Bonds under Section 54D of the Code. Finance Director means the City’s Finance and Information Services Administrator or the successor to such officer. Interest Rate means the rate of interest determined pursuant to Section 11 of this ordinance as the same may be adjusted pursuant to the Proposal and set forth herein. Program means the program of the City to finance capital expenditures to improve certain existing public streetlights located throughout the City in order to promote energy conservation and efficiency throughout the City for the benefit of the general public. Project means the project described in Section 2 of this ordinance. Project Fund means the “Project Fund” authorized to be created pursuant to Section 7 of this ordinance. Proposal means the proposal letter submitted by the Purchaser substantially in the form attached hereto as Exhibit A. Purchaser means __________________________. 7b. - Administrative Services Department requests approval of an ordinance Page 22 of 135 -4-05/02/13 Registered Owner means the person in whose name the Bond is registered on the Bond Register. Rule means the Securities and Exchange Commission’s Rule 15c2-12 under the Securities Exchange Act of 1934, as the same may be amended from time to time. (b)Interpretation. In this ordinance, unless the context otherwise requires: (1)The terms “hereby,” “hereof,” “hereto,” “herein,” “hereunder” and any similar terms, as used in this ordinance, refer to this ordinance as a whole and not to any particular article, section, subdivision or clause hereof, and the term “hereafter” shall mean after, and the term “heretofore” shall mean before, the date of this ordinance; (2)Words of the masculine gender shall mean and include correlative words of the feminine and neutral genders and words importing the singular number shall mean and include the plural number and vice versa; (3)Words importing persons shall include firms, associations, partnerships (including limited partnerships), trusts, corporations and other legal entities, including public bodies, as well as natural persons; (4)Any headings preceding the text of the several articles and sections of this ordinance, and any table of contents or marginal notes appended to copies hereof, shall be solely for convenience of reference and shall not constitute a part of this ordinance, nor shall they affect its meaning, construction or effect; and (5)All references herein to “articles,” “sections” and other subdivisions or clauses are to the corresponding articles, sections, subdivisions or clauses hereof. 7b. - Administrative Services Department requests approval of an ordinance Page 23 of 135 -5-05/02/13 Section 2.Authorization of the Project. The Bond is being issued to finance costs of implementing the Program, including capital improvements related to replacing existing high- pressure luminaries with light emitting diode luminaries (the “Project”). Any remaining costs of the Project shall be paid from other City funds legally available for such purpose. Section 3.Authorization of the Bond. For the purpose of financing costs of the Project and paying costs of issuance for the Bond, the City hereby authorizes the issuance and sale of its limited tax general obligation bond in the principal amount of not to exceed $3,200,000. The bond shall be designated the “City of Renton, Washington, Limited Tax General Obligation Bond, 2013 (Taxable Direct-Pay Qualified Energy Conservation Bond),” or other such designation as set forth in the Bond and approved by the Finance Director. The Bond shall be dated as of its date of delivery, shall be fully registered as to both principal and interest, shall be in one denomination, and shall mature 15 years from its dated date. The Bond shall bear interest from its dated date or the most recent date to which interest has been paid at the Interest Rate, as the same may be adjusted pursuant to the Proposal and set forth herein. Interest on the principal amount of the Bond shall be calculated per annum on a 30/360 basis, or as otherwise provided in the Bond. Principal shall be payable at maturity or prior redemption. Interest on the Bond shall be payable semiannually on the first days of ______ and _______ as set forth in the payment schedule attached to the Bond. Section 4.Registration, Exchange and Payments. (a)Registrar/Bond Registrar. The Finance Director shall act as Bond Registrar. The Bond Registrar is authorized, on behalf of the City, to authenticate and deliver the Bond if 7b. - Administrative Services Department requests approval of an ordinance Page 24 of 135 -6-05/02/13 transferred or exchanged in accordance with the provisions of the Bond and this ordinance and to carry out all of the Bond Registrar’s powers and duties under this ordinance. (b)Registered Ownership. The City and the Bond Registrar may deem and treat the Registered Owner of the Bond as the absolute owner for all purposes, and neither the City nor the Bond Registrar shall be affected by any notice to the contrary. Payment of the Bond shall be made only as described in subsection (e) below. All such payments made as described in subsection (e) below shall be valid and shall satisfy the liability of the City upon the Bond to the extent of the amount so paid. (c)No Transfer or Exchange of Registered Ownership. The Bond shall not be transferrable without the consent of the City unless (i) the Purchaser’s corporate name is changed and the transfer is necessary to reflect such change; or (ii) the transferee is a successor in interest of the Purchaser by means of a corporate merger, an exchange of stock, or a sale of assets. (d)Registration Covenant. The City covenants that, until the Bond has been surrendered and canceled, it will maintain a system for recording the ownership of the Bond that complies with the provisions of Section 149 of the Code. (e)Place and Medium of Payment. Both principal of and interest on the Bond shall be payable in lawful money of the United States of America. Principal and interest on the Bond shall be payable by check, warrant, ACH transfer or by other means mutually acceptable to the Purchaser and the City. Upon final payment of principal and interest of the Bond, the Registered Owner shall surrender the Bond for cancellation at the office of the Bond Registrar in accordance with this Section 4 and Section 13. 7b. - Administrative Services Department requests approval of an ordinance Page 25 of 135 -7-05/02/13 Section 5.Form of Bond. The Bond shall be in substantially the following form: UNITED STATES OF AMERICA NO. R-1 $__________ STATE OF WASHINGTON CITY OF RENTON LIMITED TAX GENERAL OBLIGATION BOND, 2013 (TAXABLE DIRECT-PAY QUALIFIED ENERGY CONSERVATION BOND) INTEREST RATE: _____% MATURITY DATE:____________, _____ REGISTERED OWNER:_______________ PRINCIPAL AMOUNT:________ AND NO/100 DOLLARS The City of Renton, Washington, a municipal corporation organized and existing under and by virtue of the laws of the State of Washington (the “City”), hereby acknowledges itself to owe and for value received promises to pay to the Registered Owner identified above, on or before the Maturity Date identified above, the Principal Amount identified above. This bond shall bear interest at the fixed rate stated above (the “Interest Rate”). Interest on this bond shall accrue from its dated date until paid and shall be computed per annum on the principal amount outstanding on a 30/360 basis. Accrued interest on this bond shall be payable semiannually on the dates set forth in the payment schedule attached hereto. Principal shall be payable at maturity or prior redemption. Both principal of and interest on this bond shall be payable in lawful money of the United States of America. Principal and interest on this bond shall be payable by check or warrant or by other means mutually acceptable to the Registered Owner and the City. Upon final payment of principal and interest of this bond, the Registered Owner shall surrender this bond for cancellation at the office of the Bond Registrar in accordance with Ordinance No. ______ of the City (the “Bond Ordinance”). This bond is issued pursuant to the Bond Ordinance to finance costs related to implementing a green community program of the City, including streetlight improvements, and to pay costs of issuance. Capitalized terms used in this bond have the meanings given such terms in the Bond Ordinance. The City may prepay and redeem this bond prior to maturity as provided in the Bond Ordinance. This bond has not been designated as a “qualified tax-exempt obligation” within the meaning of Section 265(b) of the Code. 7b. - Administrative Services Department requests approval of an ordinance Page 26 of 135 -8-05/02/13 The City has in the Bond Ordinance authorized the creation of a fund to be used for the payment of debt service on this bond, designated as the “Bond Redemption Fund” (the “Bond Fund”). The Bond Fund shall be drawn upon for the sole purpose of paying the principal of and interest on this bond. The City hereby irrevocably covenants and agrees with the owner of this bond that it will include in its annual budget and levy taxes annually, within and as a part of the tax levy permitted to the City without a vote of the electorate, upon all the property subject to taxation in amounts sufficient, together with other money legally available therefor, to pay the principal of and interest on this bond as the same shall become due. The full faith, credit and resources of the City are hereby irrevocably pledged for the annual levy and collection of such taxes and the prompt payment of such principal and interest. Any proceeds of this bond not expended on the Project or costs of issuance shall be pledged to payment of this bond and deposited in the Bond Fund for such purpose. This bond shall not be valid or become obligatory for any purpose or be entitled to any security or benefit under the Bond Ordinance until the Certificate of Authentication hereon shall have been manually signed by or on behalf of the Bond Registrar or its duly designated agent. This bond is issued pursuant to the Constitution and laws of the State of Washington, and duly adopted ordinances of the City. This bond is transferable upon compliance with the conditions set forth in the Bond Ordinance. It is hereby certified that all acts, conditions and things required by the Constitution and statutes of the State of Washington to exist, to have happened, been done and performed precedent to and in the issuance of this bond exist, have happened, been done and performed and that the issuance of this bond does not violate any constitutional, statutory or other limitation upon the amount of bonded indebtedness that the City may incur. IN WITNESS WHEREOF, the City of Renton, Washington, has caused this bond to be executed by the manual or facsimile signature of the Mayor of the City Council and attested by the manual or facsimile signature of the Clerk, as of this _____ day of ___________, 2013. [SEAL]CITY OF RENTON, WASHINGTON By /s/ Mayor ATTEST: /s/ 7b. - Administrative Services Department requests approval of an ordinance Page 27 of 135 -9-05/02/13 City Clerk REGISTRATION CERTIFICATE This bond is registered in the name of the Registered Owner on the books of the City, in the office of the Finance Director of the City (the “Bond Registrar”), as to both principal and interest, as noted in the registration blank below. All payments of principal of and interest on this bond shall be made by the City from the Bond Fund. Date of Registration Name and Address of Registered Owner Signature of Bond Registrar __________ __, 2013 ______________________ Finance Director PAYMENT SCHEDULE Principal and interest on this bond shall be payable as set forth in the following schedule: Date Principal Interest Total Payment Section 6.Execution of Bond. The Bond shall be executed on behalf of the City with the manual or facsimile signature of the Mayor, and shall be attested by the manual or facsimile signature of the Clerk. Only such Bond as shall bear thereon a Certificate of Authentication in the form earlier recited, manually executed by the Bond Registrar, shall be valid or obligatory for any purpose or 7b. - Administrative Services Department requests approval of an ordinance Page 28 of 135 -10-05/02/13 entitled to the benefits of this ordinance. Such Certificate of Authentication shall be conclusive evidence that the Bond so authenticated has been duly executed, authenticated and delivered hereunder and is entitled to the benefits of this ordinance. In case either of the officers who shall have executed the Bond shall cease to be an officer or officers of the City before the Bond so signed shall have been authenticated or delivered by the Bond Registrar, or issued by the City, such Bond may nevertheless be authenticated, delivered and issued and upon such authentication, delivery and issuance, shall be as binding upon the City as though those who signed the same had continued to be such officers of the City. The Bond may also be signed and attested on behalf of the City by such persons who at the date of the actual execution of the Bond, are the proper officers of the City, although at the original date of such Bond any such person shall not have been such officer of the City. Section 7.Application of Bond Proceeds. The City shall establish a fund designated the “Project Fund” (the “Project Fund”) into which the proceeds of the Bond shall be deposited. Money in the Project Fund shall be used to pay the costs of the Project and costs of issuance for the Bond. The Finance Director may invest money in the Project Fund in legal investments for City funds. Earnings on such investments shall accrue to the benefit of the Project Fund. Money remaining in the Project Fund after all costs of the Project and costs of issuance for the Bond have been paid shall be pledged to payment of the Bond and deposited in the Bond Fund for such purpose. Section 8.Tax Covenants. The City hereby designates the Program as a “green community program” for purposes of Section 54D(f)(1)(A)(ii) of the Code. The City reasonably 7b. - Administrative Services Department requests approval of an ordinance Page 29 of 135 -11-05/02/13 expects that implementation of the Program will promote energy conservation and efficiency for the benefit of the general public. The City hereby makes an irrevocable designation under Section 54D of the Code that the Bond be issued and sold as a “Qualified Energy Conservation Bond.” The City makes a further irrevocable designation to have Section 6431(f)(3)(B) of the Code apply to the Bond, with the effect that the Bond will be issued and sold as a direct payment tax credit bond as set forth in the Federal Tax Certificate. The City shall comply with the provisions of this section unless, in the written opinion of Bond Counsel to the City, such compliance is not required to maintain the exemption of the interest on the Bond from federal income taxation. The City hereby covenants that it will comply with the covenants set forth in the Federal Tax Certificate. The City shall take such additional actions as are required to qualify such Bond as a Qualified Energy Conservation Bond, to maintain such qualification, and to seek reimbursement of the applicable federal subsidy in the future on a timely basis. The City has not designated the Bond as a “qualified tax-exempt obligation” within the meaning of Section 265(b) of the Code. Section 9.Pledge of Funds and Credit; General Obligation. The City hereby authorizes the creation of a fund to be used for the payment of debt service on the Bond, designated as the “Bond Redemption Fund” (the “Bond Fund”). No later than the date each payment of principal of or interest on the Bond becomes due, the City shall transmit sufficient funds, from the Bond Fund or from other legally available sources, to the Bond Registrar for the 7b. - Administrative Services Department requests approval of an ordinance Page 30 of 135 -12-05/02/13 payment of such principal or interest. Money in the Bond Fund may be invested in legal investments for City funds. The City hereby irrevocably covenants and agrees for as long as the Bond is outstanding and unpaid that each year it will include in its budget and levy an ad valorem tax upon all the property within the City subject to taxation in an amount that will be sufficient, together with other revenues and money of the City legally available for such purposes, to pay the principal of and interest on the Bond when due. The City hereby irrevocably pledges that the annual tax provided for herein to be levied for the payment of such principal and interest shall be within and as a part of the tax levy permitted to cities without a vote of the people, and that a sufficient portion of each annual levy to be levied and collected by the City prior to the full payment of the principal of and interest on the Bond will be and is hereby irrevocably set aside, pledged and appropriated for the payment of the principal of and interest on the Bond. The full faith, credit and resources of the City are hereby irrevocably pledged for the annual levy and collection of said taxes and for the prompt payment of the principal of and interest on the Bond when due. Section 10.Prepayment and Redemption. If the Bond is prepaid in accordance with this Section 10, interest shall cease to accrue on the date the Purchaser receives such prepayment. [for discussion only – to be revised] (a)Optional Redemption. The Bond may be prepaid, in whole or in part, on any date at the Make Whole Amount. For purposes of this Section, the “Make Whole Amount” is the excess, if any, of (1) the sum of the present values (determined as of the date of prepayment) of all remaining scheduled payments of principal and interest on the Bond from the date of 7b. - Administrative Services Department requests approval of an ordinance Page 31 of 135 -13-05/02/13 prepayment to the maturity date, discounted at a rate equal to the yield on the interpolated US Treasury obligation having a weighted average to that of the Bond at the time of prepayment plus 50 basis points, over (2) the principal amount of the Bond being prepaid. (b)Extraordinary Optional Redemption. The Bond may be redeemed prior to maturity at any time at a price of par, plus accrued interest, to the date of redemption upon the occurrence of an “Extraordinary Event.” For purposes of this Section, an “Extraordinary Event” will have occurred if the City determines that a material adverse change has occurred to Sections 54A, 54D, or 5431 of the Code or any other applicable section of the Code, or if there is any guidance published by the Internal Revenue Service (“IRS”) or the United States Department of the Treasury (the “Treasury”) with respect to such sections or any other determination by the IRS or Treasury, which determination is not the result of any act or omission by the City to satisfy the requirements to qualify to receive the federal credit payments related to the Bond, pursuant to which the City’s federal credit payments are reduced or eliminated, or the IRS or Treasury announces its intent to reduce or eliminate the federal credit payment. (c)Extraordinary Mandatory Redemption. The Bond is subject to extraordinary mandatory redemption, in whole or in part, on a date no later than three years after the date of issuance of the Bond, or, in the event of an extension negotiated with the IRS, on any date not later than 90 days after the end of such extension period, at a redemption price equal to the principal amount of the Bond called for redemption plus accrued interest, in an amount equal to the unexpended proceeds of the sale of the Bond held by the City, but only to the extent that 7b. - Administrative Services Department requests approval of an ordinance Page 32 of 135 -14-05/02/13 the City fails to expend all of the proceeds of the Bond within three years of issuance thereof and no extension of the period for expenditures has been granted by the IRS. Section 11.Sale of the Bond. The Bond shall be sold to the Purchaser pursuant to the terms of this ordinance and the Purchaser’s Proposal. The City hereby accepts the Purchaser’s Proposal, which is attached as Exhibit A. The Finance Director is hereby authorized to approve the Interest Rate and the principal amount of the Bond and to agree to any other terms, conditions and covenants that are in the best interest of the City and in accordance with the Purchaser’s Proposal so long as (a) the principal amount of the Bond does not exceed $3,200,000, and (b) the Interest Rate for the Bond does not exceed [_____]%. The appropriate City officials, including but not limited to the Mayor, the Chief Administrative Officer, and the Finance Director, are hereby authorized and directed to do everything necessary for the prompt issuance, execution and delivery of the Bond and for the proper application and use of the proceeds thereof. Section 12.Ongoing Disclosure; Covenants. (a)Ongoing Disclosure. The Bond is exempt from ongoing disclosure requirements of the Rule. (b)Covenants. So long as the Bond is outstanding, the City hereby covenants and agrees as follows: (1)To provide the Purchaser copies of the City’s audited financial statements promptly after such statements become available; and (2)To provide financial or other information as may be reasonably requested in writing from time to time. 7b. - Administrative Services Department requests approval of an ordinance Page 33 of 135 -15-05/02/13 Section 13.Lost, Stolen or Destroyed Bond. In case the Bond shall be lost, stolen or destroyed while in the Registered Owner’s possession, the Bond Registrar may at the request of the Registered Owner execute and deliver a new Bond of like date, number and tenor to the Registered Owner thereof upon the Registered Owner’s paying the expenses and charges of the City and the Bond Registrar in connection therewith and upon its filing with the City written certification that such Bond was actually lost, stolen or destroyed and of its ownership thereof. In the case the Bond shall be lost, stolen, or destroyed while in the Registered Owner’s possession, the Registered Owner may elect upon final payment of principal and interest of the Bond to surrender a photocopy of the Bond for cancellation at the office of the Bond Registrar together with written certification that such Bond was actually lost, stolen or destroyed and of its ownership thereof. Section 14.Severability; Ratification. If any one or more of the covenants or agreements provided in this ordinance to be performed on the part of the City shall be declared by any court of competent jurisdiction to be contrary to law, then such covenant or covenants, agreement or agreements, shall be null and void and shall be deemed separable from the remaining covenants and agreements of this ordinance and shall in no way affect the validity of the other provisions of this ordinance or of the Bond. All acts taken pursuant to the authority granted in this ordinance but prior to its effective date are hereby ratified and confirmed. 7b. - Administrative Services Department requests approval of an ordinance Page 34 of 135 -16-05/02/13 Section 15.Effective Date of Ordinance. This ordinance shall be effective upon its passage, approval, and thirty (30) days after publication. PASSED by the City Council this _____ day of ______________, 2013. Bonnie I. Walton, City Clerk APPROVED BY THE MAYOR this _____ day of _________, 2013. Denis Law, Mayor Approved as to form: Pacifica Law Group LLP Bond Counsel Date of Publication: ___________________ 7b. - Administrative Services Department requests approval of an ordinance Page 35 of 135 Exhibit A Purchaser’s Proposal (attached) 7b. - Administrative Services Department requests approval of an ordinance Page 36 of 135 CERTIFICATE I, the undersigned, the Clerk of the City Council (the “City Council”) of City of Renton, Washington (herein called the “City”), DO HEREBY CERTIFY: 1.That the attached ordinance numbered ________ (herein called the “Ordinance”) is a true and correct copy of an ordinance of the City, as finally adopted at a regular meeting of the City Council held on the ___ day of __________, 2013, and duly recorded in my office. 2.That the meeting was duly convened and held in all respects in accordance with law, and to the extent required by law, due and proper notice of such meeting was given; that a quorum of the City Council was present throughout the meeting and a legally sufficient number of members of the City Council voted in the proper manner for the passage of said Ordinance; that all other requirements and proceedings incident to the proper adoption of said Ordinance have been duly fulfilled, carried out and otherwise observed, and that I am authorized to execute this certificate. IN WITNESS WHEREOF, I have hereunto set my hand this ___ day of __________, 2013. Bonnie I. Walton, City Clerk 7b. - Administrative Services Department requests approval of an ordinance Page 37 of 135 CITY OF RENTON COUNCIL AGENDA BILL Subject/Title: Appointment to Lodging Tax Advisory Committee Meeting: Regular Council - 06 May 2013 Exhibits: n/a Submitting Data: Dept/Div/Board: Community and Economic Development Staff Contact: Chip Vincent Recommended Action: Council Concur Fiscal Impact: Expenditure Required: $ Transfer Amendment: $ Amount Budgeted: $ Revenue Generated: $ Total Project Budget: $ City Share Total Project: $ SUMMARY OF ACTION: Resolution #3288 established the Renton Lodging Tax Advisory Committee and authorizes Council to review the membership annually and fill any committee vacancies. Resolution #3686 established the president and CEO of the Greater Renton Chamber of Commerce as one of five committee members. Lynn Wallace is the new President and CEO of the Renton Chamber of Commerce, having replaced Sabrina Mirante, former Interim President of the Renton Chamber of Commerce. Therefore, appointment of Lynn Wallace is requested. The other members of the Committee as ratified by Council on 11/19/2012 are: Councilmember Marcie Palmer; Preeti Shridhar, City of Renton Deputy Public Affairs Administrator; Brent Camman, General Manager of Marriott Spring Hill and Marriott Towne Place; and Kathy Madison, General Manager of Hilton Garden Inn. STAFF RECOMMENDATION: Appoint Lynn Wallace, president and CEO of the Greater Renton Chamber of Commerce, to the Renton Lodging Tax Advisory Committee, replacing Sabrina Mirante, and ratify the previous appointments of Palmer, Shridhar, Camman and Madison as current Committee members. 7c. - Community and Economic Development Department recommends Page 38 of 135 CITY OF RENTON COUNCIL AGENDA BILL Subject/Title: Park Rules and Regulations revisions Meeting: Regular Council - 06 May 2013 Exhibits: Ordinance Resolution Amended Park Rules Submitting Data: Dept/Div/Board: Community Services Staff Contact: Kelly Beymer, Parks and Golf Course Director - ext. 6617 Recommended Action: Refer to Community Services Committee Fiscal Impact: Expenditure Required: $ N/A Transfer Amendment: $ Amount Budgeted: $ N/A Revenue Generated: $ Total Project Budget: $ N/A City Share Total Project: $ SUMMARY OF ACTION: Approval of amendments to the Park Rules and Regulations includes the addition of 'definitions', clarifies existing rules, and identifies new rules that address changing operations and activities, and authorizes the enforcement of the regulations. The Parks Commissioners, City Attorney and City Staff have reviewed all proposed changes. STAFF RECOMMENDATION: Approve the amendments to the Park Rules and Regulations and adopt the Ordinance and Resolution. 7d. - Community Services Department recommends approval of amendments Page 39 of 135 7d. - Community Services Department recommends approval of amendments Page 40 of 135 7d. - Community Services Department recommends approval of amendments Page 41 of 135 7d. - Community Services Department recommends approval of amendments Page 42 of 135 7d. - Community Services Department recommends approval of amendments Page 43 of 135 7d. - Community Services Department recommends approval of amendments Page 44 of 135 7d. - Community Services Department recommends approval of amendments Page 45 of 135 7d. - Community Services Department recommends approval of amendments Page 46 of 135 7d. - Community Services Department recommends approval of amendments Page 47 of 135 7d. - Community Services Department recommends approval of amendments Page 48 of 135 7d. - Community Services Department recommends approval of amendments Page 49 of 135 7d. - Community Services Department recommends approval of amendments Page 50 of 135 7d. - Community Services Department recommends approval of amendments Page 51 of 135 7d. - Community Services Department recommends approval of amendments Page 52 of 135 7d. - Community Services Department recommends approval of amendments Page 53 of 135 7d. - Community Services Department recommends approval of amendments Page 54 of 135 7d. - Community Services Department recommends approval of amendments Page 55 of 135 7d. - Community Services Department recommends approval of amendments Page 56 of 135 7d. - Community Services Department recommends approval of amendments Page 57 of 135 7d. - Community Services Department recommends approval of amendments Page 58 of 135 7d. - Community Services Department recommends approval of amendments Page 59 of 135 7d. - Community Services Department recommends approval of amendments Page 60 of 135 7d. - Community Services Department recommends approval of amendments Page 61 of 135 7d. - Community Services Department recommends approval of amendments Page 62 of 135 7d. - Community Services Department recommends approval of amendments Page 63 of 135 7d. - Community Services Department recommends approval of amendments Page 64 of 135 7d. - Community Services Department recommends approval of amendments Page 65 of 135 CITY OF RENTON COUNCIL AGENDA BILL Subject/Title: May Creek Trailhead Property Acquisition Meeting: Regular Council - 06 May 2013 Exhibits: n/a Submitting Data: Dept/Div/Board: Community Services Staff Contact: Leslie Betlach, Parks Planning and Natural Resources Director Recommended Action: Council Concur Fiscal Impact: Expenditure Required: $ 370,000.00 Transfer Amendment: $ Amount Budgeted: $ 619,000.00 Revenue Generated: $ Total Project Budget: $ 370,000.00 City Share Total Project: $ 370,000.00 SUMMARY OF ACTION: In 2008, the City was bequest a 3.7 acre life estate providing future access to the May Creek Corridor. The life estate property will come into City ownership at the end of 2013. The Life Estate identifies the property for park use and is forested with mature evergreen trees that are required to remain. Vehicular access to the site is limited, as is the potential for trailhead parking lot development. Two contiguous and adjacent parcels are listed for sale. Both parcels are accessible from an improved intersection, are relatively flat and provide the opportunity for trailhead access, parking, and access to the Life Estate property. The parcels are listed for $345,000.00. The assessed value is $389,000.00 ($44,000.00 less than the listing price). The Seller requires closing on the Property Sale by May 15, 2013. As part of due diligence, the City will contract with a consultant to conduct an Environmental Transaction Screen to confirm the lack of of hazardous materials and conduct a title search to ensure clear title insurable to the City's satisfaction. Additional property acquisition costs include contributing fifty percent (50%) of the escrow costs and completing a survey once the sales transaction has been completed. The estimated costs of these additional items is $25,000.00. Funding will be derived from the King County Levy Fund (316.332029.00020.594.76.61.000). The Levy funds are restricted to open space and natural area property acquisition and trails property acquisition and development. The current account balance is $619,000.00 and after total expenses of $370,000.00 leaves a remaining balance of $249,000.00. STAFF RECOMMENDATION: Authorize the two parcel May Creek Trailhead property acquisition and adjust the budget as described. 7e. - Community Services Department requests authorization to acquire the two-Page 66 of 135 CITY OF RENTON COUNCIL AGENDA BILL Subject/Title: LED Conversion of City of Renton Owned Street Lights Meeting: Regular Council - 06 May 2013 Exhibits: Issue Paper Amendment to Department of Enterprise Services Interagency Agreement CAG-12-120 Energy Services Proposal Submitting Data: Dept/Div/Board: Public Works Staff Contact: Chris Barnes (ext. 7220) Recommended Action: Refer to Transportation/Aviation Committee Fiscal Impact: Expenditure Required: $ $4,305,693 Transfer Amendment: $ Amount Budgeted: $ Revenue Generated: $$1,089,012 Total Project Budget: $ $4,305,693 City Share Total Project: $ $3,216,681 SUMMARY OF ACTION: On August 13, 2012, a Resolution was approved authorizing the Mayor to execute an Energy Services Agreement with the Department of Enterprise Services (DES) to allow them to provide energy conservation project management and monitoring services to the City for the conversion of approximately 3,865 high pressure sodium (HPS) and metal halide street lights currently in use with energy efficient light emitting diode (LED) street lights. DES has brought forward an Energy Services Proposal from Ameresco Quantum, Inc. (AQ) that follows the outline contained in Section 2 of the Energy Services Agreement. It presents the contractual terms under which AQ, the City of Renton and DES Energy Program will work together over the term of the project. This proposal describes the services of AQ to include design, construction, system verification and measurement and verification (M&V – first year) along with costs, guarantees and other aspects of the project. The City of Renton’s annual consumption of energy for City owned street lights is 4,256,456 kWh. The proposed conversion to LED will save the City approximately 2,947,043 kWh, which at the current PSE rate schedules, equates to an annual savings of $271,683. Besides the energy savings, this project will significantly reduce maintenance costs and improve the quality of light for the City. STAFF RECOMMENDATION: Approve the amendment to the interlocal agreement with the State Department of Enterprise Services (DES) to manage and monitor the conversion of city owned street lights to light emitting diode (LED) lights pursuant to the provisions of the Energy Services Proposal prepared by Ameresco Quantum, Inc. Authorize the Mayor and City Clerk to execute the funding authorization forms associated with this amendment. Authorize the Administration to pursue the issuance of a Qualified Energy Conservation Bond to provide funding for this project. 7f. - Transportation Systems Division recommends approval of an amendment Page 67 of 135 PUBLIC WORKS DEPARTMENT M E M O R A N D U M DATE:April 29, 2013 TO:Randy Corman, Council President Members of Renton City Council VIA:Denis Law, Mayor FROM:Gregg Zimmerman, Public Works Administrator STAFF CONTACT:Chris Barnes, Transportation Operations Manager (x-7220) SUBJECT:LED Conversion of City of Renton Owned Street Lights ISSUE: Should the Council authorize the Mayor to execute an amendment to the interlocal agreement with the State Department of Enterprise Services (DES) to manage and monitor the conversion of city owned street lights to light emitting diode (LED) lights pursuant to the provisions of the Energy Services Proposal prepared by Ameresco Quantum, Inc.? Should the Council authorize the Administration to pursue the issuance of a State Department of Commerce Qualified Energy Conservation Bond (QECB) to provide funding for this project? RECOMMENDATION: Approve the amendment to the interlocal agreement with the State Department of Enterprise Services (DES) to manage and monitor the conversion of city owned street lights to light emitting diode (LED) lights pursuant to the provisions of the Energy Services Proposal prepared by Ameresco Quantum, Inc. Authorize the Mayor to execute the funding authorization forms associated with this amendment. Authorize the Administration to pursue the issuance of a Qualified Energy Conservation Bond to provide funding for this project. BACKGROUND: On August 13, 2012, Council adopted a resolution authorizing the Mayor to execute an agreement with the Department of Enterprise Services (DES) to allow them to provide energy conservation project management and monitoring services to the City for the conversion of approximately 3,865 high pressure sodium (HPS) street lights currently in use with energy efficient light emitting diode (LED) street lights. DES has brought forward an Energy Services Proposal from Ameresco Quantum, Inc. (AQ) that provides for the design, construction, system verification and measurement 7f. - Transportation Systems Division recommends approval of an amendment Page 68 of 135 Randy Corman, Council President Members of the Renton City Council Page 2 of 3 April 29, 2013 and verification (M&V) services for the first year. This Energy Services Proposal presents the contractual terms under which AQ, Renton, and DES will work together over the term of the project. The proposal describes the services of AQ to include design, construction, system verification and measurement and verification (M&V – first year) along with costs, guarantees, and other aspects of the project. The subject amendment to the interlocal agreement with DES adds design, construction and contract administration to the scope of the earlier agreement. Key provisions of this amended agreement include: Ameresco Quantum provides a detailed engineering design to replace 3,865 existing high pressure sodium and metal halide lights with lower wattage LED lights. Ameresco Quantum provides, or contracts to be provided, all material, labor, and equipment necessary for the installation of the replacement lights. Ameresco Quantum provides construction management services to coordinate and supervise the work. Ameresco Quantum will provide ongoing training on the lighting system for City staff during the construction project. Ameresco Quantum will provide measurement and verification to help ensure the predicted power cost savings are achieved throughout the first three years of the agreement. Ameresco Quantum will warrant the equipment for one year following notice of substantial completion of the installation project. Ameresco Quantum guarantees that the maximum project cost (not including sales tax) and DES project management fees will not exceed $3,907,161. Total project price including sales tax and DES fees is $4,305,693. Project costs are broken down on page 6 of the attached Energy Services Proposal. Ameresco Quantum guarantees that the electrical savings will not be less than 2,652,339 KWh during the first year. In the event that the energy savings is less than the guaranteed minimum, Ameresco Quantum will pay the City as provided in Section X1 of the Energy Services Proposal. Ameresco Quantum will complete design work within 45 days of notice to proceed. Construction will be substantially complete within 180 days of design acceptance. Final completion will be within 60 days of substantial completion. FINANCIAL As shown on the Project Cost Table on page 6 of the attached Energy Services Proposal, the total project price is $4,305,693. Renton has been awarded a Department of Commerce grant of $500,000 and is eligible for a Puget Sound Energy utility incentive 7f. - Transportation Systems Division recommends approval of an amendment Page 69 of 135 Randy Corman, Council President Members of the Renton City Council Page 3 of 3 April 29, 2013 estimated to be $589,012. The estimated net cost of the project to Renton is $3,216,681. This project is a qualified energy conservation project and is eligible for the federally subsidized Qualified Energy Conservation Bond (QECB) financing program. QECB financing allows state, tribal and local governments to issue long-term taxable bonds and receive a direct rebate from the U.S. Department of the Treasury to offset the interest cost and leaving a net interest cost well below the tax exempt bond rates. Washington state received $68 million in QECB allocation. Jurisdictions with more than 100,000 in population are allocated a direct share of this bonding capacity based on their proportional population. The State Department of Commerce aggregates the remaining unallocated amount as well as any unused direct allocations for a total of $20 million, and allocates them through an application process. The City requested and received $3.2 Million in QECB allocation through this process for the LED Light Conversion Project. Based on the current market condition, the net interest cost after subsidy payment is between 0% and 0.6% for 15-year term; and just below 1% for 20- year term, and with annual debt service payment at $216,000 and $179,000, respectively. The debt service will be paid using the energy cost savings estimated at about $250,000 per year. Therefore the annual energy cost savings will exceed the debt service cost, resulting in a positive cash flow. One caveat about the direct subsidy payment program is that it is subject to federal budget and legislation changes such as the sequestration. Under the current sequestration program, the direct subsidy payments are set to be reduced by 8.9% this year, same level of reduction as other federal programs. Should this occur during the term of the bonds, the range of reduction would be from $8,900 in the first year to $560 in the final year. To make sure the City will not pay more than tax-exempt rates in any circumstances, an optional redemption provision will be included in the bonds to allow the City to call the bonds at par and re-issue tax exempt bonds if necessary. In addition, with the small amount to be financed, staff is looking at issuing the bonds through private placement instead of public sales. The preliminary quotes show rates are competitive and the cost of issuance will be lower (no bond rating, official statement preparation costs). Staff will bring detailed financing terms and documentations to Council for consideration in early May, with funding anticipated in mid-July before first construction progress payment. cc:Iwen Wang, Administrative Services Administrator Doug Jacobson, Deputy Public Works Administrator, Transportation Chris Barnes, Transportation Operations Manager 7f. - Transportation Systems Division recommends approval of an amendment Page 70 of 135 7f. - Transportation Systems Division recommends approval of an amendment Page 71 of 135 7f. - Transportation Systems Division recommends approval of an amendment Page 72 of 135 7f. - Transportation Systems Division recommends approval of an amendment Page 73 of 135 7f. - Transportation Systems Division recommends approval of an amendment Page 74 of 135 7f. - Transportation Systems Division recommends approval of an amendment Page 75 of 135 7f. - Transportation Systems Division recommends approval of an amendment Page 76 of 135 7f. - Transportation Systems Division recommends approval of an amendment Page 77 of 135 7f. - Transportation Systems Division recommends approval of an amendment Page 78 of 135 7f. - Transportation Systems Division recommends approval of an amendment Page 79 of 135 7f. - Transportation Systems Division recommends approval of an amendment Page 80 of 135 7f. - Transportation Systems Division recommends approval of an amendment Page 81 of 135 7f. - Transportation Systems Division recommends approval of an amendment Page 82 of 135 7f. - Transportation Systems Division recommends approval of an amendment Page 83 of 135 7f. - Transportation Systems Division recommends approval of an amendment Page 84 of 135 7f. - Transportation Systems Division recommends approval of an amendment Page 85 of 135 7f. - Transportation Systems Division recommends approval of an amendment Page 86 of 135 7f. - Transportation Systems Division recommends approval of an amendment Page 87 of 135 7f. - Transportation Systems Division recommends approval of an amendment Page 88 of 135 7f. - Transportation Systems Division recommends approval of an amendment Page 89 of 135 7f. - Transportation Systems Division recommends approval of an amendment Page 90 of 135 7f. - Transportation Systems Division recommends approval of an amendment Page 91 of 135 7f. - Transportation Systems Division recommends approval of an amendment Page 92 of 135 7f. - Transportation Systems Division recommends approval of an amendment Page 93 of 135 7f. - Transportation Systems Division recommends approval of an amendment Page 94 of 135 7f. - Transportation Systems Division recommends approval of an amendment Page 95 of 135 7f. - Transportation Systems Division recommends approval of an amendment Page 96 of 135 7f. - Transportation Systems Division recommends approval of an amendment Page 97 of 135 7f. - Transportation Systems Division recommends approval of an amendment Page 98 of 135 7f. - Transportation Systems Division recommends approval of an amendment Page 99 of 135 7f. - Transportation Systems Division recommends approval of an amendment Page 100 of 135 7f. - Transportation Systems Division recommends approval of an amendment Page 101 of 135 7f. - Transportation Systems Division recommends approval of an amendment Page 102 of 135 7f. - Transportation Systems Division recommends approval of an amendment Page 103 of 135 7f. - Transportation Systems Division recommends approval of an amendment Page 104 of 135 7f. - Transportation Systems Division recommends approval of an amendment Page 105 of 135 7f. - Transportation Systems Division recommends approval of an amendment Page 106 of 135 7f. - Transportation Systems Division recommends approval of an amendment Page 107 of 135 7f. - Transportation Systems Division recommends approval of an amendment Page 108 of 135 7f. - Transportation Systems Division recommends approval of an amendment Page 109 of 135 CITY OF RENTON COUNCIL AGENDA BILL Subject/Title: Final Pay Estimate CAG 12-083 Liberty Lift Station Contractor: Equity Builders, LLC. Meeting: Regular Council - 06 May 2013 Exhibits: Final Pay Estimate Notice Of Completion of Public Works Contract Submitting Data: Dept/Div/Board: Public Works Staff Contact: Michael Benoit, Wastewater Utility, x7206 Recommended Action: Council Concur Fiscal Impact: Expenditure Required: $ $1,095.00 (Final Pay Est.) Transfer Amendment: $NA Amount Budgeted: $ $10,000 Revenue Generated: $NA Total Project Budget: $ $500,000 City Share Total Project: $ NA SUMMARY OF ACTION: The project was awarded on June 25, 2012. Construction began on August 1, 2012, and was completed on April 5, 2013. The original contract amount was $362,554.50 and the final amount is $374,867.72, an increase of $12,313.22 or 3 percent. The cost increase was mostly due to authorizing the additive bid item to construct a shelter roof over the electrical panels. The final cost was within the amount budgeted for the project. The 2012/2013 budget for the Liberty Lift Station project is $500,000 (account 426.465499). The amount budgeted for this project is enough to cover the construction, engineering, and staff costs of this project. STAFF RECOMMENDATION: Accept the project, approve the final pay estimate, in the amount of $1,095.00, and release the retainage in the amount of $17,117.25 after 60 days, subject to the receipt of all required authorizations. 7g. - Utilities Systems Division submits CAG-12-083, Liberty Lift Station project; Page 110 of 135 7g. - Utilities Systems Division submits CAG-12-083, Liberty Lift Station project; Page 111 of 135 7g. - Utilities Systems Division submits CAG-12-083, Liberty Lift Station project; Page 112 of 135 7g. - Utilities Systems Division submits CAG-12-083, Liberty Lift Station project; Page 113 of 135 9a. - Entertainment device license fee code amendment (See 8.b.)Page 114 of 135 9a. - Entertainment device license fee code amendment (See 8.b.)Page 115 of 135 9a. - Entertainment device license fee code amendment (See 8.b.)Page 116 of 135 9a. - Entertainment device license fee code amendment (See 8.b.)Page 117 of 135 9a. - Entertainment device license fee code amendment (See 8.b.)Page 118 of 135 9a. - Entertainment device license fee code amendment (See 8.b.)Page 119 of 135 9a. - Entertainment device license fee code amendment (See 8.b.)Page 120 of 135 9a. - Entertainment device license fee code amendment (See 8.b.)Page 121 of 135 9a. - Entertainment device license fee code amendment (See 8.b.)Page 122 of 135 9a. - Entertainment device license fee code amendment (See 8.b.)Page 123 of 135 9a. - Entertainment device license fee code amendment (See 8.b.)Page 124 of 135 9a. - Entertainment device license fee code amendment (See 8.b.)Page 125 of 135 9a. - Entertainment device license fee code amendment (See 8.b.)Page 126 of 135 9a. - Entertainment device license fee code amendment (See 8.b.)Page 127 of 135 9a. - Entertainment device license fee code amendment (See 8.b.)Page 128 of 135 9a. - Entertainment device license fee code amendment (See 8.b.)Page 129 of 135 9a. - Entertainment device license fee code amendment (See 8.b.)Page 130 of 135 9a. - Entertainment device license fee code amendment (See 8.b.)Page 131 of 135 9a. - Entertainment device license fee code amendment (See 8.b.)Page 132 of 135 9a. - Entertainment device license fee code amendment (See 8.b.)Page 133 of 135 9a. - Entertainment device license fee code amendment (See 8.b.)Page 134 of 135 9a. - Entertainment device license fee code amendment (See 8.b.)Page 135 of 135