HomeMy WebLinkAboutCouncil 07/11/2011AGENDA
RENTON CITY COUNCIL
REGULAR MEETING
July 11, 2011
Monday, 7 p.m.
1.CALL TO ORDER AND PLEDGE OF ALLEGIANCE
2.ROLL CALL
3.SPECIAL PRESENTATION
a. Police Department ‐ "Employer of the Year" Recognition from Central Washington University
4.PUBLIC HEARING
a. Gaile Annexation ‐ 60% Direct Petition to Annex; 43.6 acres located generally east of 128th
Ave. SE, west of 131st Pl. SE, south of SE 160th Pl., and north of Lindbergh High School.
5.ADMINISTRATIVE REPORT
6.AUDIENCE COMMENT
(Speakers must sign up prior to the Council meeting. Each speaker is allowed five minutes. The
comment period will be limited to one‐half hour. The second audience 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 42.17.130, campaigning for any ballot
measure or candidate from the lectern during any portion of the council meeting, and
particularly, during 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 6/27/2011. Council concur.
b. Mayor Law appoints Harold (KC) Jones to the Airport Advisory Committee, Highlands
Neighborhood ‐alternate, (position previously held by Michael Krohn) for a term expiring
5/7/2013. Refer to Community Services Committee.
c. City Clerk reports bid opening on 6/30/2011 for CAG‐11‐115, Lake Ave. S./Rainier Ave. S. Storm
System Project; nine bids; engineer’s estimate $1,103,930; and submits staff recommendation
to award the contract to the low bidder, James W. Fowler Company, in the amount of
$994,925. Council concur.
d. Court Case filed by Robin R. Peterson & Deanna Horton as Co‐Representatives of the estate of
Frankie L. Peterson, et al v. William & Jane Doe Torbeson and the City of Renton, represented
by Dean Brett, Attorney for Plaintiff, relating to an alleged wrongful death occuring at Bronson
Way N. near Park Ave. N. Refer to City Attorney and Insurance Services.
e. Community and Economic Development Department recommends amending RMC 4‐1‐210.B.,
Waived Fees Housing Incentive, to extend the development and mitigation fee waivers to new
Page 1 of 355
multi‐family rental housing in the Sunset Area. Refer to Planning and Development
Committee.
f. Community and Economic Development Department submits the proposed 2011 Title IV
(Development Regulations) Docket #7 amendment table for the annual review processes.
Refer to Planning and Development Committee and Planning Commission.
g. Community and Economic Development Department recommends acceptance of a deed of
dedication for additional right‐of‐way for Jericho Ave. NE, to fulfill a requirement of the Cairnes
Short Plat (LUA‐10‐026). Council concur.
h. Executive Department recommends setting a public meeting on 8/1/2011 to consider The
Veterans and Human Services Levy, solicit public comment, and consider supporting or
opposing the measure. Council concur.
i. Finance and Information Services Department recommends approval of second quarter 2011
Budget amendment increasing appropriations by $3.1 million. Refer to Finance Committee.
j. Finance and Information Services Department requests approval of an ordinance authorizing
the issuance of revenue bonds in the amount of $10.15 million to refinance existing City Hall
Remodel and City Center Parking Garage debt at an average rate of 2.5% replacing existing
bonds of $9.95 million carrying an average interest rate of 5.25%, saving approximately
$900,000 to $1 million over the remaining six‐year life of the bonds. Refer to Finance
Committee.
k. Police Department requests approval to accept $22,285.50 in grant funds from the Washington
State Traffic Safety Commission and to sign a memorandum of understanding and related
amendment in order to conduct high visibility enforcement traffic safety emphasis patrols.
Council concur.
l. Transportation Systems Division submits the annual update of the Six‐Year Transportation
Improvement Program (TIP) and Arterial Street Plan. Refer to Transportation (Aviation)
Committee; set public hearing on 8/1/2011 to consider the TIP.
m. Transportation Systems Division recommends approval of addenda to airport leases LAG‐85‐
011 and LAG‐84‐003, with Kaynan, Inc., to increase the total ground lease rate per appraisal by
$5,314.20 annually through 5/31/2014, and to readjust the rate thereafter using the CPI index.
Council concur.
n. Utility Systems Division recommends approval of Amendment #1 to the 1998 interlocal
agreement (Franchise) with the City of Seattle and Seattle Public Utilities regarding water
transmission lines to extend the term to 1/1/2062. Refer to Utilities Committee.
o. Utility Systems Division recommends approval of Amendment #1 to the 1998 lease
agreement (Franchise) with the City of Seattle and Seattle Public Utilities regarding water
transmission lines to extend the term to 1/1/2062. Refer to Utilities Committee.
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: Determination of Surplus Property Status for Old Fire Station
13*
b. Finance Committee: Vouchers
c. Public Safety Committee: Trail Safety; Massage & Spa Business Regulations Code
Amendment*
Page 2 of 355
9.RESOLUTIONS AND ORDINANCES
Resolution:
a. Declaring 17040 108th Ave. SE (Old Fire Station 13 Property) as surplus (See 8.a.)
Ordinance for first reading:
a. Massage and spa business regulations code amendment (See 8.c.)
10.NEW BUSINESS
(Includes Council Committee agenda topics; call 425‐430‐6512 for recorded information.)
11.AUDIENCE COMMENT
12.ADJOURNMENT
COMMITTEE OF THE WHOLE AGENDA
(Preceding Council Meeting)
COUNCIL CHAMBERS
July 11, 2011
Monday, 6 p.m.
Police Department Emerging Issues
• 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 355
4a. ‐ Gaile Annexation ‐ 60% Direct Petition to Annex; 43.6 acres located
generally east of 128th Ave. SE, west of 131st Pl. SE, south of SE 160th Page 4 of 355
4a. ‐ Gaile Annexation ‐ 60% Direct Petition to Annex; 43.6 acres located
generally east of 128th Ave. SE, west of 131st Pl. SE, south of SE 160th Page 5 of 355
CITY OF RENTON COUNCIL AGENDA BILL
Subject/Title:
Appointment to Airport Advisory Committee
Meeting:
Regular Council - 11 Jul 2011
Exhibits:
Application for Boards, Commissions, Committees
Submitting Data: Dept/Div/Board:
Executive
Staff Contact:
Denis Law, Mayor
Recommended Action:
Refer to Community Services Committee
Fiscal Impact:
Expenditure Required: $ N/A Transfer Amendment: $N/A
Amount Budgeted: $ N/A Revenue Generated: $N/A
Total Project Budget: $ N/A City Share Total Project: $ N/A
SUMMARY OF ACTION:
Mayor Law appoints the following to the Airport Advisory Committee:
Mr. Harold (KC) Jones, 2720 NE 4th Court, Renton, WA 98056, Highlands Neighborhood - Alternate
Position, for a term expiring May 7, 2013.
STAFF RECOMMENDATION:
Confirm Mayor Law's appointment of Mr. Jones to the Airport Advisory Committee
7b. ‐ Mayor Law appoints Harold (KC) Jones to the Airport Advisory
Committee, Highlands Neighborhood ‐alternate, (position previously Page 6 of 355
7b. ‐ Mayor Law appoints Harold (KC) Jones to the Airport Advisory
Committee, Highlands Neighborhood ‐alternate, (position previously Page 7 of 355
7b. ‐ Mayor Law appoints Harold (KC) Jones to the Airport Advisory
Committee, Highlands Neighborhood ‐alternate, (position previously Page 8 of 355
CITY OF RENTON COUNCIL AGENDA BILL
Subject/Title:
Bid Opening on 6/30/2011, for CAG-11-115, Lake
Ave. S./Rainier Ave. S. Storm System Project
Meeting:
Regular Council - 11 Jul 2011
Exhibits:
Staff Recommendation
Bid Tabulation Sheet (nine bids)
Submitting Data: Dept/Div/Board:
Executive
Staff Contact:
Bonnie Walton, City Clerk ext. 6502
Recommended Action:
Council Concur
Fiscal Impact:
Expenditure Required: $ 994,925 Transfer Amendment: $
Amount Budgeted: $ Revenue Generated: $
Total Project Budget: $ 1,573,500 City Share Total Project: $
SUMMARY OF ACTION:
Engineer's Estimate: $1,103,930
In accordance with Council procedure, bids submitted at the subject bid opening met the following three
criteria: There was more than one bid, there were no irregularities with the low bid, and the low bid
was within the project budget. Therefore, staff recommends acceptance of the low bid submitted by
James W. Fowler Company in the amount of $994,925.
STAFF RECOMMENDATION:
Accept the low bid by James W. Fowler Company in the amount of $994,925.
7c. ‐ City Clerk reports bid opening on 6/30/2011 for CAG‐11‐115, Lake
Ave. S./Rainier Ave. S. Storm System Project; nine bids; engineer’s Page 9 of 355
7c. ‐ City Clerk reports bid opening on 6/30/2011 for CAG‐11‐115, Lake
Ave. S./Rainier Ave. S. Storm System Project; nine bids; engineer’s Page 10 of 355
7c. ‐ City Clerk reports bid opening on 6/30/2011 for CAG‐11‐115, Lake
Ave. S./Rainier Ave. S. Storm System Project; nine bids; engineer’s Page 11 of 355
7c. ‐ City Clerk reports bid opening on 6/30/2011 for CAG‐11‐115, Lake
Ave. S./Rainier Ave. S. Storm System Project; nine bids; engineer’s Page 12 of 355
7c. ‐ City Clerk reports bid opening on 6/30/2011 for CAG‐11‐115, Lake
Ave. S./Rainier Ave. S. Storm System Project; nine bids; engineer’s Page 13 of 355
7c. ‐ City Clerk reports bid opening on 6/30/2011 for CAG‐11‐115, Lake
Ave. S./Rainier Ave. S. Storm System Project; nine bids; engineer’s Page 14 of 355
7c. ‐ City Clerk reports bid opening on 6/30/2011 for CAG‐11‐115, Lake
Ave. S./Rainier Ave. S. Storm System Project; nine bids; engineer’s Page 15 of 355
7c. ‐ City Clerk reports bid opening on 6/30/2011 for CAG‐11‐115, Lake
Ave. S./Rainier Ave. S. Storm System Project; nine bids; engineer’s Page 16 of 355
7c. ‐ City Clerk reports bid opening on 6/30/2011 for CAG‐11‐115, Lake
Ave. S./Rainier Ave. S. Storm System Project; nine bids; engineer’s Page 17 of 355
7c. ‐ City Clerk reports bid opening on 6/30/2011 for CAG‐11‐115, Lake
Ave. S./Rainier Ave. S. Storm System Project; nine bids; engineer’s Page 18 of 355
CITY OF RENTON COUNCIL AGENDA BILL
Subject/Title:
CRT-11-001; Court Case
Robin R. Peterson & Deanna Horton as Co-
Personal Representatives of Frankie L. Peterson,
et al v.
William & Jane Torbeson & City of Renton
Meeting:
Regular Council - 11 Jul 2011
Exhibits:
Amended Summons
Amended Complaint for Wrongful Death &
Personal Injuries
Order Setting Civil Case Schedule
Submitting Data: Dept/Div/Board:
Executive
Staff Contact:
Bonnie Walton, City Clerk ext. 6502
Recommended Action:
Refer to City Attorney and Insurance Services
Fiscal Impact:
Expenditure Required: $ Transfer Amendment: $
Amount Budgeted: $ Revenue Generated: $
Total Project Budget: $ City Share Total Project: $
SUMMARY OF ACTION:
Amended Summons, Amended Complaint for Wrongful Death & Personal Injuries, and Order Setting Civil
Case Schedule filed in Superior Court of the State of Washington, County of King, by Robin R. Peterson
and Deanna Horton as Co-Personal Representatives for the estate of Frankie L. Peterson, Robin R.
Peterson, Deanna Horton, Adam Peterson, and Erik Peterson, represented by Dean Brett, attorney for
Plaintiffs, relating to an alleged wrongful death occuring at Bronson Way N. near Park Ave. N.
STAFF RECOMMENDATION:
7d. ‐ Court Case filed by Robin R. Peterson & Deanna Horton as Co‐
Representatives of the estate of Frankie L. Peterson, et al v. William & Page 19 of 355
7d. ‐ Court Case filed by Robin R. Peterson & Deanna Horton as Co‐
Representatives of the estate of Frankie L. Peterson, et al v. William & Page 20 of 355
7d. ‐ Court Case filed by Robin R. Peterson & Deanna Horton as Co‐
Representatives of the estate of Frankie L. Peterson, et al v. William & Page 21 of 355
7d. ‐ Court Case filed by Robin R. Peterson & Deanna Horton as Co‐
Representatives of the estate of Frankie L. Peterson, et al v. William & Page 22 of 355
7d. ‐ Court Case filed by Robin R. Peterson & Deanna Horton as Co‐
Representatives of the estate of Frankie L. Peterson, et al v. William & Page 23 of 355
7d. ‐ Court Case filed by Robin R. Peterson & Deanna Horton as Co‐
Representatives of the estate of Frankie L. Peterson, et al v. William & Page 24 of 355
7d. ‐ Court Case filed by Robin R. Peterson & Deanna Horton as Co‐
Representatives of the estate of Frankie L. Peterson, et al v. William & Page 25 of 355
7d. ‐ Court Case filed by Robin R. Peterson & Deanna Horton as Co‐
Representatives of the estate of Frankie L. Peterson, et al v. William & Page 26 of 355
7d. ‐ Court Case filed by Robin R. Peterson & Deanna Horton as Co‐
Representatives of the estate of Frankie L. Peterson, et al v. William & Page 27 of 355
7d. ‐ Court Case filed by Robin R. Peterson & Deanna Horton as Co‐
Representatives of the estate of Frankie L. Peterson, et al v. William & Page 28 of 355
7d. ‐ Court Case filed by Robin R. Peterson & Deanna Horton as Co‐
Representatives of the estate of Frankie L. Peterson, et al v. William & Page 29 of 355
7d. ‐ Court Case filed by Robin R. Peterson & Deanna Horton as Co‐
Representatives of the estate of Frankie L. Peterson, et al v. William & Page 30 of 355
7d. ‐ Court Case filed by Robin R. Peterson & Deanna Horton as Co‐
Representatives of the estate of Frankie L. Peterson, et al v. William & Page 31 of 355
7d. ‐ Court Case filed by Robin R. Peterson & Deanna Horton as Co‐
Representatives of the estate of Frankie L. Peterson, et al v. William & Page 32 of 355
7d. ‐ Court Case filed by Robin R. Peterson & Deanna Horton as Co‐
Representatives of the estate of Frankie L. Peterson, et al v. William & Page 33 of 355
7d. ‐ Court Case filed by Robin R. Peterson & Deanna Horton as Co‐
Representatives of the estate of Frankie L. Peterson, et al v. William & Page 34 of 355
CITY OF RENTON COUNCIL AGENDA BILL
Subject/Title:
Waived Fees Housing Incentive - Extend to New
Multi-Family Rental Housing in Sunset Area
Meeting:
Regular Council - 11 Jul 2011
Exhibits:
Issue Paper
FEIS Preferred Alternative Map - Sunset Terrace
Redevelopment Area
2010 King Co. Housing Finance Affordable Housing
Proj applications - unit cost info
Proposed Waived Fees Rental Housing Incentive -
Sunset Area map
Draft Ordinance
Proposed RMC 4-1-210C Rental Housing Incentive
Submitting Data: Dept/Div/Board:
Community and Economic Development
Staff Contact:
Mark Santos-Johnson, Senior Economic
Development Specialist (x6584)
Recommended Action:
Refer to Planning and Development Committee
Fiscal Impact:
Expenditure Required: $ Transfer Amendment: $
Amount Budgeted: $ Revenue Generated: $
Total Project Budget: $ City Share Total Project: $
SUMMARY OF ACTION:
The City originally established the current waived fees housing incentive (RMC 4-1-210B) in 2001 to
encourage new owner-occupied housing in Downtown Renton. The incentive was expanded in 2010 to
include new owner-occupied housing in the Sunset Area. To date, the waived fees were instrumental in
helping construct two projects in Downtown Renton, the 37 condos at 55 Williams and the 50 condos at
the Chateau de Ville.
Redevelopment of the Sunset Area in the Highlands has been a priority business plan goal for the City
since the 1990’s. Unfortunately, capital investment in the Sunset Area, particularly for residential
construction, has been very limited, in part due to significant development costs for builders to
compensate for the deficient utility infrastructure in the area. To provide an additional catalyst for
redevelopment, staff proposes that the current waived fees housing incentive be extended to include
new multi-family rental housing in the Sunset Area.
The proposed modification supports the City’s vision as the, "Center of Opportunity in the Puget Sound
region where businesses and families thrive," several 2011-2016 Business Plan Goals and the Sunset
Area Community Investment Strategy adopted by the City Council in November 2009. The proposed
rental housing incentive will encourage capital investment in the area, assist developers in building
new market-rate and affordable multi-family rental housing in the Sunset Area and stimulate additional
revitalization and commercial development in the Highlands.
STAFF RECOMMENDATION:
Approve an amendment to the Waived Fees Housing Incentive in RMC 4-1-210 to extend the
development and mitigation fee waivers to new multi-family rental housing in the Sunset Area and
adopt the ordinance.
7e. ‐ Community and Economic Development Department recommends
amending RMC 4‐1‐210.B., Waived Fees Housing Incentive, to extend Page 35 of 355
7e. ‐ Community and Economic Development Department recommends
amending RMC 4‐1‐210.B., Waived Fees Housing Incentive, to extend Page 36 of 355
1Waived Fees Rental Housing Incentive – Sunset Area
DEPARTMENT OF COMMUNITY & ECONOMIC DEVELOPMENT
M E M O R A N D U M
DATE:May 27, 2011
TO:Council President Terri Briere
Members of the Renton City Council
VIA:Denis Law, Mayor
FROM:Alex Pietsch, Administrator
STAFF CONTACT:Mark Santos-Johnson, Senior Economic Development Specialist - ext.
6584
SUBJECT:Waived Fees Housing Incentive – Modification to Extend to New
Multi-Family Rental Housing in Sunset Area
ISSUE:
Should the City amend the Waived Fees Housing Incentive provided for in RMC 4-1-210 to extend the
development and mitigation fee waivers to new multi-family rental housing in the Sunset Area?
RECOMMENDATION:
Adopt an ordinance to amend the Waived Fees Housing Incentive in RMC 4-1-210 to extend the development
and mitigation fee waivers to new multi-family rental housing in the Sunset Area.
BACKGROUND SUMMARY:
The City and Renton Housing Authority (RHA) have been working since last summer to complete an
Environmental Impact Statement (EIS) and Planned Action Ordinance for the Sunset Area to help facilitate
redevelopment in the Highlands. As discussed at various Sunset Area Interdepartmental Team meetings
during the past year for the Sunset Area EIS, the deficient utility infrastructure and the cost of development in
the Sunset Area are both significant hurdles that need to be overcome if the Sunset Terrace redevelopment
and private sector, market-rate projects that we hope will be spurred by it are to move forward.
Now that the Sunset Area Final EIS is nearly ready for adoption, we have a better understanding of the
magnitude of the infrastructure challenges. And, we now have two new affordable housing projects in the
Sunset Terrace redevelopment area (both with significant costs to extend new upsized water service to their
projects) asking for the City’s consideration to waive development and mitigation fees to help offset the
development costs for new multi-family housing projects in the area. Additionally, we have several other
potential projects in the pipeline as noted below from which we can anticipate similar requests.
Sunset Area Pipeline Projects
1) The first project in the pipeline is RHA’s “Glenwood Project,” an eight-unit, four-bedroom townhome
project on Glenwood [i.e., buildings 3 and 4 on the attached FEIS Preferred Alternative map for the Sunset
Terrace Redevelopment Area (FEIS Preferred Alternative map)]. The project received $1.95 million in federal
HOME funds through King County and is scheduled to start construction later this year. The project will
provide replacement housing for all 8 of the four-bedroom units at Sunset Terrace and is the first phase of the
7e. ‐ Community and Economic Development Department recommends
amending RMC 4‐1‐210.B., Waived Fees Housing Incentive, to extend Page 37 of 355
2Waived Fees Rental Housing Incentive – Sunset Area
Sunset Terrace redevelopment. RHA needs to install approximately 950 feet of new 12” water line from NE 12
th Street. The developer estimates that the off-site water line will cost $128,000 and on-site storm water work
will cost another $125,000 for a combined total of almost $32,000 per unit.
As noted on the attached list of 2010 King County Housing Finance Affordable Housing Project applications,
RHA’s project in the Sunset Area was the most expensive project in the County, including multiple other urban
projects from Seattle and Bellevue. RHA believes that a significant part of the project’s higher costs are
related to the area’s deficient public utility and street infrastructure and the City’s various fees. The caliber of
this project and competitive strength of future affordable housing projects should be much stronger with
additional assistance from the City. This is particularly important for the Sunset Area since RHA has a
commitment to replace all 100 of the Sunset Terrace public housing units as part of the Sunset Terrace
redevelopment.
2) The second project in the pipeline is the Providence Health & Services’ proposed development of the
“Providence John Gabriel House” (i.e., building 11 on the FEIS Preferred Alternative map). The proposed
70-unit project will provide supportive rental housing for low-income elderly and include a “PACE Center,” a
facility that will offer a Program of All-inclusive Care for qualifying Elderly. The PACE Center will employ
approximately 40 FTE medical and service staff and will allow nursing home eligible seniors to access health
care and social services, thereby enabling them to remain living at home for a longer time. The Providence
John Gabriel House has an over $21 million budget, including a $3.5 million budget for the PACE Center. In
2007-2008 Providence Health & Services moved their headquarters to Renton and now has approximately
1,200 local employees. Providence John Gabriel House will be the organization’s first housing project in
Renton. They are currently seeking project funding to start construction in mid-2012. The Public Works
Department and the Fire & Emergency Services Department have been responsive to the project’s water
needs. However, the project will still need to extend a new 12” water line from Sunset Boulevard NE and
create a loop around the building, along with on-site storm water improvements and off-site street
improvements. The funding of the Providence project is still uncertain and the proposed waived fees would
help strengthen the likelihood of it moving forward.
3) The City and the King County Library System (KCLS) are working with RHA to prepare for construction of the
new Highlands Library as part of the Sunset Terrace redevelopment (i.e., currently planned for building 9 on
the Preferred Alternative map). The project is scheduled to start construction in late-2012.
4) RHA has issued a request for qualifications (RFQ) to secure a market-rate housing developer for the Sunset
Terrace redevelopment. The RFQ includes two or more phases. The first phase includes either a stand-alone
mixed-use building at the corner of NE 10th Street and Sunset Boulevard NE (i.e., building 10 on the FEIS
Preferred Alternative map) or a potential larger mixed-use building that is combined with the new Highlands
Library (i.e., buildings 9 and 10 on the FEIS Preferred Alternative map). Future potential market-rate housing
phases include an additional potential mixed-use building and/or potential multi-family housing buildings (i.e.,
building 8 and buildings 6 and 7 respectively on the FEIS Preferred Alternative map). The first phase of
construction is currently scheduled to start in late-2012, with the schedule for the additional buildings to be
determined based on market conditions.
RHA’s additional affordable housing projects (e.g., buildings 1, 2, 5 and 13 through 17 on the FEIS Preferred
Alternative Map) and the proposed new neighborhood park (i.e., area 12 on the FEIS Preferred Alternative
map) will be developed as funds are available (i.e., in 2013 or later).
Waived Fees – Housing Incentive
The City originally established the current waived fees housing incentive (RMC 4-1-210B) in 2001 to encourage
new owner-occupied housing in Downtown Renton. The incentive was expanded in 2010 to include new
owner-occupied housing in the Sunset Area. To date, the waived fees were instrumental in helping construct
two projects in Downtown Renton, the 37 condos at 55 Williams and the 50 condos at the Chateau de Ville.
7e. ‐ Community and Economic Development Department recommends
amending RMC 4‐1‐210.B., Waived Fees Housing Incentive, to extend Page 38 of 355
3Waived Fees Rental Housing Incentive – Sunset Area
Thus far, no projects in the Sunset Area have used the owner-occupied housing waived fees incentive.
The development and mitigation fees which may be waived, subject to City Council approval, for an eligible
multi-family housing project include: building permit fees; building permit plan review fees; water, surface
water and wastewater system development charges; Public Works plan review and inspection fees; and fire,
transportation and parks impact mitigation fees.
Example of Potential Development and Mitigation Savings
Based on the analysis completed at the time, the 55 Williams project with 37 units was expected to receive a
total savings of approximately $118,994 from the owner-occupied housing incentive, including $43,748 in fire,
transportation and parks mitigation fees, $41,440 in water and wastewater system development charges, and
$33,806 in building permit fees. (There were no surface water system development charges since 100% of the
site was already an impervious surface from the prior use.) The incentive worked out to a savings of
approximately $3,216 per unit.
The Chateau de Ville project with 50 units was expected to receive a total savings of approximately $169,485
from the owner-occupied housing incentive, including $59,100 in fire, transportation and parks mitigation
fees, $73,465 in water, wastewater system development and surface water charges, and $36,919 in building
permit fees. The incentive worked out to a savings of approximately $3,390 per unit.
The actual savings for a future project would be dependent upon the nature and size of the housing project
and the City fees in place at the time.
PROPOSED MODIFICATION:
Redevelopment of the Highlands (Sunset Area) has been a priority business plan goal for the City since the
1990’s. Unfortunately, capital investment in the Sunset Area (particularly for residential construction) has
been very limited, in part due to significant development costs for builders to compensate for the deficient
utility infrastructure. To provide an additional catalyst for redevelopment, staff proposes that the current
waived fees housing incentive be extended to include new multi-family rental housing in the Sunset Area (but
not Downtown Renton – where only owner-occupied housing would continue to be eligible for waived fees).
More specifically, we recommend extending the waived fees housing incentive for new multi-family rental
housing in the Center Village (CV), Residential Multi-Family (RM-F), and Residential 14 Dwelling Units/Acre
(R-14) zones within the Center Village Comprehensive Plan designation. An eligible project in the CV zone
would need a minimum of 30 housing units and an eligible project in either the RM-F or R-14 zones would
need a minimum of eight housing units1.
1 The minimum eight units are slightly lower than the minimum ten units used for the owner-occupied housing
incentive and the Multi-Family Housing Property Tax Exemption codified in RMC 4-1-220. The lower figure will provide
more flexibility and allow RHA’s eight unit Glenwood townhouse project to be eligible for the incentive.
In addition, staff proposes that eligible new affordable multi-family rental housing projects in the Sunset Area
receive a 100% fee waiver and eligible new market-rate multi-family rental housing projects receive a 50% fee
waiver. The incentive would sunset on December 31, 2012 (the same date as the current owner-occupied
housing incentive and the Multi-Family Housing Property Tax Exemption), unless further extended by City
Council action.
Please refer to the attached proposed text for RMC 4-1-210C for more information.
The proposed modification supports the City’s vision as the center of opportunity in the Puget Sound region
where businesses and families thrive and the following 2011-2016 Business Plan Goals:
·Encourage and partner in the development of quality housing choices for people of all ages and
income levels; and
7e. ‐ Community and Economic Development Department recommends
amending RMC 4‐1‐210.B., Waived Fees Housing Incentive, to extend Page 39 of 355
4Waived Fees Rental Housing Incentive – Sunset Area
·Capitalize on growth opportunities through bold and creative economic development strategies; and
·Continue redevelopment efforts Downtown, in the Highlands and in the South Lake Washington area.
The proposed rental housing incentive supports the Sunset Area Community Investment Strategy adopted by
the City Council in November 2009, and the Sunset Area EIS (including, in particular, the Sunset Terrace
redevelopment preferred alternative).
CONCLUSION:
Redevelopment of the Highlands (Sunset Area) has been a priority business plan goal for the City since the
1990’s. To help offset the significant development costs for new residential construction in the Sunset Area,
staff proposes to extend the waived fees incentive to new multi-family rental housing in the Sunset Area. The
proposed rental housing incentive will encourage capital investment in the area, assist developers in building
new market-rate and affordable multi-family rental housing in the Sunset Area and stimulate additional
revitalization and commercial development in the Highlands.
Attachments:
1.FEIS Preferred Alternative Map – Sunset Terrace Redevelopment Area
2.2010 King County Housing Finance Affordable Housing Project applications – unit cost information
3.Proposed Waived Fees Rental Housing Incentive – Sunset Area map
4.Draft Ordinance
5.Proposed RMC 4-1-210C Rental Housing Incentive
cc.Jay Covington, CAO
Bonnie Walton, City Clerk
Iwen Wang, Finance & IS Administrator
Terry Higashiyama, Community Services Administrator
Gregg Zimmerman, Public Works Administrator
Mark Peterson, Fire Chief
David Pargas, Assistant Fire Marshall
Suzanne Dale Estey, Economic Development Director
Neil Watts, Development Services Director
Chip Vincent, Planning Director
Jennifer Henning, Current Planning Manager
Karen Bergsvik, Human Services Manager
7e. ‐ Community and Economic Development Department recommends
amending RMC 4‐1‐210.B., Waived Fees Housing Incentive, to extend Page 40 of 355
0’100’200’300’400’N
Multi-family: Flats
Multi-family: Townhouses
Civic / Community Services
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Passive open space: plaza
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Sunset Area Planned Action EIS
FEIS: Sunset Terrace Redevelopment Area
4/27/11 Final Preferred Alternative7e. ‐ Community and Economic Development Department recommends
amending RMC 4‐1‐210.B., Waived Fees Housing Incentive, to extend Page 41 of 355
7e. ‐ Community and Economic Development Department recommends
amending RMC 4‐1‐210.B., Waived Fees Housing Incentive, to extend Page 42 of 355
,§-405
,§-405
Kiwanis Park
NE 12th St
NE 7th St
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NE 6th St
NE Sunset Blvd
NE 20th St
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NE 19th St
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NE 25th Pl
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0 1,500750FeetMay 27, 2011
1:12,000
Proposed Waived FeesRental Housing Incentive - Sunset Area
City LimitsParcelsParksSunset Area (Center Village Comprehensive Plan Designation)
File Name: H:\CED\Planning\GIS\GIS_projects\economic_development\multi_family_tax_exemption\mxds\proposed_waived_fee_rental_housing_incentive.mxd
¯
7e. ‐ Community and Economic Development Department recommends
amending RMC 4‐1‐210.B., Waived Fees Housing Incentive, to extend Page 43 of 355
1
CITY OF RENTON, WASHINGTON
ORDINANCE NO. ________
AN ORDINANCE OF THE CITY OF RENTON, WASHINGTON, AMENDING SECTION
4-1-210, WAIVED FEES, OF CHAPTER 1, ADMINISTRATION AND ENFORCEMENT,
OF TITLE IV (DEVELOPMENT REGULATIONS) OF ORDINANCE NO. 4260 ENTITLED
“CODE OF GENERAL ORDINANCES OF THE CITY OF RENTON, WASHINGTON”, BY
EXTENDING AND MODIFYING THE WAIVER OF CERTAIN DEVELOPMENT AND
MITIGATION FEES.
WHEREAS, on August 27, 2001, the Renton City Council approved Ordinance No. 4913
(codified in RMC 4-1-210) to allow certain development and mitigation fees for housing that is
for sale to be waived to encourage new owner-occupied housing in Downtown Renton;
WHEREAS, on February 1, 2010, the Renton City Council amended Subsection 4-1-210B,
Owner-Occupied Housing Incentive, to expand the development and fee waivers to encourage
new owner-occupied housing in the Sunset Area; and
WHEREAS, the provisions of Subsection 4-1-210B helped to establish the 37-unit “55
Williams” and the 50-unit “Chateau de Ville” condominium projects as new owner-occupied
housing in Downtown Renton;
WHEREAS, the development and mitigation fee waivers currently apply to eligible
owner-occupied housing projects in the CD, RM-U, and RM-T zones of the Urban Center
Comprehensive Plan designation and the CV, RM-F, and R-14 zones within the Center Village
Comprehensive Plan designation; and
WHEREAS, a City-convened Highlands Task Force recommended in December 2008 that
City staff identify incentives to help facilitate redevelopment in the Highlands (a.k.a., Sunset
Area); and
WHEREAS, the City adopted a Sunset Area Community Investment Strategy on
7e. ‐ Community and Economic Development Department recommends
amending RMC 4‐1‐210.B., Waived Fees Housing Incentive, to extend Page 44 of 355
ORDINANCE NO. _______
2
November 23, 2009, and directed staff to implement the recommendations and prioritization of
projects therein as resources become available; and
WHEREAS, the City is completing an Environmental Impact Statement (EIS) and Planned
Action Ordinance for the Sunset Area to help facilitate redevelopment; and
WHEREAS, the City now seeks to expand the development and mitigation fee waivers to
encourage new multi-family rental housing in the Sunset Area;
NOW, THEREFORE, THE CITY COUNCIL OF THE CITY OF RENTON, WASHINGTON, DOES
ORDAIN AS FOLLOWS:
SECTION I. Section 4-1-210, Waived Fees, of Chapter 1, Administration and
Enforcement, of Title IV (Development Regulations) of Ordinance No. 4260 entitled “Code of
General Ordinances of the City of Renton, Washington”, is hereby amended to add a new
Subsection C, “Rental Housing Incentive”, to read as follows:
C. RENTAL HOUSING INCENTIVE:
1.Purpose: To encourage new rental housing in the CV, RM-F, and R-14 zones
within the Center Village Comprehensive Plan designation, certain development and
mitigation fees for rental housing may be waived for eligible projects, subject to City
Council approval.
2.Definitions: In construing the provisions of this Subsection, the following
definitions shall be applied:
a. “Affordable housing” means residential housing that is rented by a low-income
household whose monthly housing costs, including rent and utilities other than
telephone, do not exceed thirty percent (30%) of the household’s monthly income.
b. “Household” means a single person, family, or unrelated persons living
7e. ‐ Community and Economic Development Department recommends
amending RMC 4‐1‐210.B., Waived Fees Housing Incentive, to extend Page 45 of 355
ORDINANCE NO. _______
3
together.
c. “Low-income household” means a single person, family, or unrelated persons
living together whose adjusted income is at or below sixty percent (60%) of the median
income.
d. “Median income” means the median family income adjusted for family size for
King County, as reported by the United States Department of Housing and Urban
Development (HUD). In the event that HUD no longer publishes median income figures
for King County, the City may use or determine such other method as it may choose to
determine the King County median income, adjusted for household size.
e. “Multi-family housing” means one or more new buildings designed for rental
housing, each with four (4) or more dwelling units.
f. “Rental housing” means multi-family housing that provides rental
accommodation on a nontransient basis. This definition includes rental accommodation
that is leased for a period of at least one month but excludes, for example, hotels and
motels that predominantly offer rental accommodation on a daily or weekly basis.
3.Eligibility Criteria: To qualify for waived fees, projects must meet the following
criteria:
a. The multi-family housing project is new construction rental housing; and
b. The project will be a minimum of eight (8) units if in the RM-F zone or R-14
zone within the Center Village Comprehensive Plan designation; or
c. The project will be a minimum of thirty (30) units if in the CV zone within the
Center Village Comprehensive Plan designation.
7e. ‐ Community and Economic Development Department recommends
amending RMC 4‐1‐210.B., Waived Fees Housing Incentive, to extend Page 46 of 355
ORDINANCE NO. _______
4
4.Applicable Fees:
a. Fees which may be waived:
i. Building permit fees;
ii. Building permit plan review fees;
iii. Water, surface water, and wastewater system development charges;
iv. Public Works plan review and inspection fees; and
v. Fire, transportation, and parks impact mitigation fees.
b. Portion of fees which may be waived:
i. One-hundred percent (100%) of the above fees may be waived for
eligible rental housing projects with at least fifty percent (50%) of the units
set-aside as affordable housing; or
(ii) Fifty percent (50%) of the above fees may be waived for eligible
market-rate rental housing projects.
5.Application Process: Persons who intend to apply for the rental housing
incentive fee waivers must disclose their intent to apply for waived fees prior to or by
the administrative site plan review period. The application for waived fees must be
made to the Planning Director (or any other City office, department or agency that shall
succeed to its functions with respect to this Section, or his or her authorized designee)
at the time of the land use application, unless otherwise approved by City Council.
6.Restrictive Covenant: All projects which obtain a fee waiver as affordable
housing under Subsection 4-1-210C4bi must contain a restrictive covenant indicating
that at least fifty percent (50%) of the units will be set aside and rented as affordable
housing. After review and approval of the waiver by the City Council and the review and
7e. ‐ Community and Economic Development Department recommends
amending RMC 4‐1‐210.B., Waived Fees Housing Incentive, to extend Page 47 of 355
ORDINANCE NO. _______
5
approval of the restrictive covenant by the Planning Director or his/her designee, the
restrictive covenant must be executed and recorded at the applicant’s expense prior to
the issuance of the building permit for the project, unless otherwise approved by City
Council. Failure to timely execute and record the covenant will result in the applicant
being responsible for any and all applicable fees and interest accrued as a result of the
delay.
7.Cancellation or Modification: If the project fails to meet the requirements of
Subsection 4-1-210C, all applicable fees must be paid with interest. After the
application has been approved and/or the restrictive covenant is recorded, the project
may not be modified to owner-occupied “For Sale” housing without the advance
approval of the City Council.
8.Effective Date and Sunset: These fee waivers are effective for building permits
issued after the effective date of this amendment, and will sunset on December 31,
2012, unless extended by City Council action.
SECTION II. This ordinance shall be effective upon its passage, approval, and
thirty (30) days after publication.
PASSED BY THE CITY COUNCIL this _______ day of ___________________, 2011.
Bonnie I. Walton, City Clerk
APPROVED BY THE MAYOR this _______ day of _____________________, 2011.
Denis Law, Mayor
7e. ‐ Community and Economic Development Department recommends
amending RMC 4‐1‐210.B., Waived Fees Housing Incentive, to extend Page 48 of 355
ORDINANCE NO. _______
6
Approved as to form:
Lawrence J. Warren, City Attorney
Date of Publication:
7e. ‐ Community and Economic Development Department recommends
amending RMC 4‐1‐210.B., Waived Fees Housing Incentive, to extend Page 49 of 355
Proposed RMC 4-1-210C. RENTAL HOUSING INCENTIVE
1.Purpose: To encourage new rental housing in the CV, RM-F, and R-14 zones
within the Center Village Comprehensive Plan designation, certain development and
mitigation fees for rental housing may be waived for eligible projects, subject to City
Council approval.
2.Definitions: In construing the provisions of this Subsection, the following
definitions shall be applied:
a. “Affordable housing” means residential housing that is rented by a low-income
household whose monthly housing costs, including rent and utilities other than
telephone, do not exceed thirty percent (30%) of the household’s monthly income.
b. “Household” means a single person, family, or unrelated persons living
together.
c. “Low-income household” means a single person, family, or unrelated persons
living together whose adjusted income is at or below sixty percent (60%) of the median
income.
d. “Median income” means the median family income adjusted for family size for
King County, as reported by the United States Department of Housing and Urban
Development (HUD). In the event that HUD no longer publishes median income figures
for King County, the City may use or determine such other method as it may choose to
determine the King County median income, adjusted for household size.
e. “Multi-family housing” means one or more new buildings designed for rental
housing, each with four (4) or more dwelling units.
f. “Rental housing” means multi-family housing that provides rental
accommodation on a nontransient basis. This definition includes rental accommodation
that is leased for a period of at least one month but excludes, for example, hotels and
motels that predominantly offer rental accommodation on a daily or weekly basis.
3.Eligibility Criteria: To qualify for waived fees, projects must meet the following
criteria:
a. The multi-family housing project is new construction rental housing; and
b. The project will be a minimum of eight (8) units if in the RM-F zone or R-14
zone within the Center Village Comprehensive Plan designation; or
c. The project will be a minimum of thirty (30) units if in the CV zone within the
Center Village Comprehensive Plan designation.
4.Applicable Fees:
a. Fees which may be waived:
i. Building permit fees;
ii. Building permit plan review fees;
iii. Water, surface water, and wastewater system development charges;
iv. Public Works plan review and inspection fees; and
v. Fire, transportation, and parks impact mitigation fees.
b. Portion of fees which may be waived:
i. One-hundred percent (100%) of the above fees may be waived for
eligible rental housing projects with at least fifty percent (50%) of the units
set-aside as affordable housing; or
(ii) Fifty percent (50%) of the above fees may be waived for eligible
7e. ‐ Community and Economic Development Department recommends
amending RMC 4‐1‐210.B., Waived Fees Housing Incentive, to extend Page 50 of 355
market-rate rental housing projects.
5.Application Process: Persons who intend to apply for the rental housing
incentive fee waivers must disclose their intent to apply for waived fees prior to or by
the administrative site plan review period. The application for waived fees must be
made to the Planning Director (or any other City office, department or agency that shall
succeed to its functions with respect to this Section, or his or her authorized designee)
at the time of the land use application, unless otherwise approved by City Council.
6.Restrictive Covenant: All projects which obtain a fee waiver as affordable
housing under Subsection 4-1-210C4bi must contain a restrictive covenant indicating
that at least fifty percent (50%) of the units will be set aside and rented as affordable
housing. After review and approval of the waiver by the City Council and the review and
approval of the restrictive covenant by the Planning Director or his/her designee, the
restrictive covenant must be executed and recorded at the applicant’s expense prior to
the issuance of the building permit for the project, unless otherwise approved by City
Council. Failure to timely execute and record the covenant will result in the applicant
being responsible for any and all applicable fees and interest accrued as a result of the
delay.
7.Cancellation or Modification: If the project fails to meet the requirements of
Subsection 4-1-210C, all applicable fees must be paid with interest. After the
application has been approved and/or the restrictive covenant is recorded, the project
may not be modified to owner-occupied “For Sale” housing without the advance
approval of the City Council.
8.Effective Date and Sunset: These fee waivers are effective for building permits
issued after the effective date of this amendment, and will sunset on December 31,
2012, unless extended by City Council action.
7e. ‐ Community and Economic Development Department recommends
amending RMC 4‐1‐210.B., Waived Fees Housing Incentive, to extend Page 51 of 355
CITY OF RENTON COUNCIL AGENDA BILL
Subject/Title:
2011 Title IV Docket #7 Amendments
Meeting:
Regular Council - 11 Jul 2011
Exhibits:
Issue Paper
2011 Title IV Docket #7 Amendments Table and
Summaries
Submitting Data: Dept/Div/Board:
Community and Economic Development
Staff Contact:
Chip Vincent, x6588
Recommended Action:
Refer to the Planning and Development
Committee and the Planning Commission.
Fiscal Impact:
Expenditure Required: $ Transfer Amendment: $
Amount Budgeted: $ Revenue Generated: $
Total Project Budget: $ City Share Total Project: $
SUMMARY OF ACTION:
Begin the 2011 Title IV Docket #7 review. There are 14 City initiated items. All items are shown in the
attached table.
STAFF RECOMMENDATION:
Approve for Planning Commission review and recommendation for the 2011 Title IV Docket #7 proposal
as presented.
7f. ‐ Community and Economic Development Department submits the
proposed 2011 Title IV (Development Regulations) Docket #7 Page 52 of 355
H:\CED\Planning\Title IV\Docket\Docket Group 7\Docket 7 Issue Paper.doc
DEPARTMENT OF COMMUNITY
AND ECONOMIC DEVELOPMENT
M E M O R A N D U M
DATE:July 11, 2011
TO:Terri Briere, Council President
Members of the Renton City Council
VIA:Denis Law, Mayor
FROM:Alex Pietsch, Administrator
STAFF CONTACT:C. E. “Chip” Vincent, Planning Director (x6588)
SUBJECT:2011 Title IV Docket #7 Amendments Review
ISSUE:
Should the 2011 Title IV Docket #7 Amendments be referred to the Planning &
Development Committee and the Planning Commission?
RECOMMENDATION:
Refer the 2011 Title IV Docket #7 Amendments to the Planning and Development
Committee and Planning Commission for review.
BACKGROUND SUMMARY:
RMC 4-8-070G outlines the types of review the Planning Commission shall conduct. The
review of the Development Regulations (Title IV Docket) process is specifically listed.
Land Use Regulations review occurs upon Council request. The Planning Commission
will make recommendations regarding the Land Use Regulations to the Council. Final
recommendation of the Title IV Docket will be the authority of the Council.
Title IV Development Regulations
This process is codified in RMC 4-9-025, Title IV Development Regulation Revision
Process. Staff has compiled a series of amendments to Title IV of the Renton Municipal
Code (Development Regulations) that includes oversights made in previous Title IV
updates and initiates several new policy/code review projects. The compiled list
includes City staff initiated amendments as shown in the 2011 Title IV Docket #7
Amendments Table.
CONCLUSION:
The proposed schedule for review of the Title IV Docket #7 Amendments is for the
Planning Commission review to occur during July through November 2011.
7f. ‐ Community and Economic Development Department submits the
proposed 2011 Title IV (Development Regulations) Docket #7 Page 53 of 355
2011 TITLE IV DOCKET #7 AMENDMENTS
Initiated by/
Assigned to Amendment Request
Laureen for Mike
Kuntz (Council
Referral)
Assigned to:
Laureen
R-4 Setbacks
The large building setbacks of the R-4 zone, which was widely applied in the Benson
Annexation Area and East Renton Plateau PAA, have been particularly challenging for
customers with existing homes that do not meet the current R-4 provisions. Customers
proposing additions have been hindered by the large building setback standards. For
example, many existing homes are built only 20 feet from the front property line.
However, the R-4 zone requires a minimum distance of 30 feet from front property line for
new structures or additions. Should the Council consider modifying the R-4 Zone setbacks
to match those of the R-8 zone former standards, which would be 15 feet for houses and
20 feet for garages and have staff evaluate the other R-4 standards as well (not to include
density)?
Staff
Assigned to:
Rocale
Signs
Existing code needs a comprehensive overhaul in order to make it consistent citywide,
modify standards to reduce the need for modifications, eliminate conflicts, streamline, and
make it easier for the public and staff to understand and administer. A proposal has been
drafted to accomplish these objectives. Currently, signs are located in three different areas
of the code.
Council/Planning &
Development
Committee
Assigned to:
Vanessa
Rebuild Approval Permit
Review requirements for non-conforming uses and rebuild approval permits considering
authorizing the rebuilding of a non-conforming structure due to acts of God and
conformity with current design requirements.
Chip
Assigned to:
Angie
Food system sustainability and security
The City has already revised regulations to allow the keeping of chickens, and other farm
type animals, on many lots within the City. Some citizens have expressed a desire for the
City to allow these small farm type animals on lots that are smaller than what is currently
allowed. Additionally, the keeping of gardens and small animals is increasingly being
linked to the sustainability of our environment and the ability of people to provide food for
themselves. Other aspects of food security include access (within a reasonable proximity)
to food sources like community gardens, grocery stores, and farmers markets. This work
item would explore what aspects of these concerns are appropriate for and should be
adopted by the City.
Jennifer
Assigned to:
Erika
Auto repair and sales
Consider requiring fencing, screening, landscaping for auto repair and sales uses within the
Commercial Arterial Zone, but outside of the AutoMall Districts. Evaluate whether
requirements can be applied retroactively.
Neil
Assigned to:
Jerry
Right of way dedication process
Streamline the right of way dedication process by making it administrative in place of
Council concurrence. The current system is unnecessarily burdensome for the City to
dedicate right of ways as part of the land use approval process.
Laureen, Chip, and
Rocale
Assigned to:
Angie
Residential Fence Heights in front yards
Currently, the City code has different requirements for fence heights in front yards based
on different residential zone classifications. This amendment would consider creating a
uniform standard.
Residential design standards applicability
The code does not establish a threshold for when open space or other requirements of
design standards are required for additions or remodels. Current code is clear that it
applies to new homes, however.
Design guidelines vs. other code requirements
7f. ‐ Community and Economic Development Department submits the
proposed 2011 Title IV (Development Regulations) Docket #7 Page 54 of 355
Clarify when design guidelines have authority over other provisions within the code.
Parking for ADU
Require one parking space per ADU
Laureen
Assigned to:
Laureen
Footnotes clean up
Some notes have been deleted but are still being referenced in the standards tables. Also,
look at the viability of Note 28 related to setback averaging. Look at Footnote 26, no
longer makes sense.
Staff/Jennifer
Assigned to:
Kristina
Streamlining the Site Plan Review and Conditional Use Permit criteria
The current site plan review criteria were established before we had design guidelines and
standards, and as a consequence are duplicative and unnecessary.
Site Plan Review Process Change: HEX review of commercial/industrial adjacent to less
intensive zones
Review the criteria in RMC 4-9-200D.2.c which requires that commercial or industrial
property which lies adjacent to or abutting the RC, R-1, R-4, R-8, and R-10 zones be subject
to a public hearing with the Hearing Examiner and consider eliminating this provision
based on the lack of public participation when this provision has been enforced.
Site Plan Review – Vesting for projects not built out in 2 years
Add language to the Site Plan Regulations to clarify vesting for portions of approved, but
not phased, projects that are not built-out within the approved time frame (generally 2
years with a possible 2 year extension) under RMC 4-9-200.L.2.
Rocale
Assigned to:
Laureen
Major Modifications Fee
Require a new fee for major modifications (site plan, preliminary plat, etc.) due to the
amount of review time involved
Laureen/Jennifer
Assigned to:
Jennifer
Shopping carts
Revisit the Shopping Cart Regulations (adopted in 2005) to update requirements and
procedures. Consider elimination of the $100 fee required to review a Shopping Cart
Retrieval Plan. Revise text that specifies the appeal fee is $75. Update language regarding
failure to file a shopping cart to reflect that this is now civil rather than criminal.
Laureen
Assigned to:
Vanessa
Parking
Need text consolidation in 4-4-080F7 for parking
Assigned to:
Kris
Administrative Code Interpretations
Various code interpretations issued in 2010 through June 2011, including: CI-09: Electric
Vehicle Infrastructure; CI-11: Impervious Surfacing; CI-12: Setbacks in the R-10 and R-14;
CI-13: Marinas in the R-1; CI-14: Density, Net Rounding; CI-15: Indoor Small Vehicle Sales;
CI-16: Tree Removal Activities; CI-17: Recreation Facilities, Indoor, New; CI-18: Urban
Separator Overlays of Soos Creek and Lake Desire; CI-19: Special Fill and Grade Permit; and
CI-20: Address Assignment
Laureen
Assigned to:
Laureen/Jennifer
Planning near pipelines and Pipeline Safety
Review literature and regulations by other municipalities for consideration of appropriate
standards for improvements in proximity to utility pipelines.
7f. ‐ Community and Economic Development Department submits the
proposed 2011 Title IV (Development Regulations) Docket #7 Page 55 of 355
CITY OF RENTON COUNCIL AGENDA BILL
Subject/Title:
Dedication of Right-of-Way for Cairnes Short Plat,
LUA10-026-SHPL
Meeting:
Regular Council - 11 Jul 2011
Exhibits:
Deed of Dedication document
Administrative Short Plat Report & Decision
Submitting Data: Dept/Div/Board:
Community and Economic Development
Staff Contact:
Carrie Olson, x7235
Recommended Action:
Council concur.
Fiscal Impact:
Expenditure Required: $ N/A Transfer Amendment: $
Amount Budgeted: $ Revenue Generated: $
Total Project Budget: $ City Share Total Project: $
SUMMARY OF ACTION:
The 10 x 329.38 foot area to be dedicated for street widening of Jericho Ave NE is approx. 3,293.8
square feet. This dedication will fulfill a condition required in the Administrative Short Plat Report &
Decision for the Cairnes Short Plat, LUA10-026-SHPL.
STAFF RECOMMENDATION:
Accept the additional right-of-way and authorize the Mayor and City Clerk to sign and record the Deed
of Dedication document.
7g. ‐ Community and Economic Development Department recommends
acceptance of a deed of dedication for additional right‐of‐way for Page 56 of 355
7g. ‐ Community and Economic Development Department recommends
acceptance of a deed of dedication for additional right‐of‐way for Page 57 of 355
7g. ‐ Community and Economic Development Department recommends
acceptance of a deed of dedication for additional right‐of‐way for Page 58 of 355
7g. ‐ Community and Economic Development Department recommends
acceptance of a deed of dedication for additional right‐of‐way for Page 59 of 355
7g. ‐ Community and Economic Development Department recommends
acceptance of a deed of dedication for additional right‐of‐way for Page 60 of 355
7g. ‐ Community and Economic Development Department recommends
acceptance of a deed of dedication for additional right‐of‐way for Page 61 of 355
7g. ‐ Community and Economic Development Department recommends
acceptance of a deed of dedication for additional right‐of‐way for Page 62 of 355
7g. ‐ Community and Economic Development Department recommends
acceptance of a deed of dedication for additional right‐of‐way for Page 63 of 355
7g. ‐ Community and Economic Development Department recommends
acceptance of a deed of dedication for additional right‐of‐way for Page 64 of 355
7g. ‐ Community and Economic Development Department recommends
acceptance of a deed of dedication for additional right‐of‐way for Page 65 of 355
7g. ‐ Community and Economic Development Department recommends
acceptance of a deed of dedication for additional right‐of‐way for Page 66 of 355
7g. ‐ Community and Economic Development Department recommends
acceptance of a deed of dedication for additional right‐of‐way for Page 67 of 355
7g. ‐ Community and Economic Development Department recommends
acceptance of a deed of dedication for additional right‐of‐way for Page 68 of 355
7g. ‐ Community and Economic Development Department recommends
acceptance of a deed of dedication for additional right‐of‐way for Page 69 of 355
7g. ‐ Community and Economic Development Department recommends
acceptance of a deed of dedication for additional right‐of‐way for Page 70 of 355
7g. ‐ Community and Economic Development Department recommends
acceptance of a deed of dedication for additional right‐of‐way for Page 71 of 355
7g. ‐ Community and Economic Development Department recommends
acceptance of a deed of dedication for additional right‐of‐way for Page 72 of 355
7g. ‐ Community and Economic Development Department recommends
acceptance of a deed of dedication for additional right‐of‐way for Page 73 of 355
7g. ‐ Community and Economic Development Department recommends
acceptance of a deed of dedication for additional right‐of‐way for Page 74 of 355
7g. ‐ Community and Economic Development Department recommends
acceptance of a deed of dedication for additional right‐of‐way for Page 75 of 355
7g. ‐ Community and Economic Development Department recommends
acceptance of a deed of dedication for additional right‐of‐way for Page 76 of 355
7g. ‐ Community and Economic Development Department recommends
acceptance of a deed of dedication for additional right‐of‐way for Page 77 of 355
7g. ‐ Community and Economic Development Department recommends
acceptance of a deed of dedication for additional right‐of‐way for Page 78 of 355
7g. ‐ Community and Economic Development Department recommends
acceptance of a deed of dedication for additional right‐of‐way for Page 79 of 355
7g. ‐ Community and Economic Development Department recommends
acceptance of a deed of dedication for additional right‐of‐way for Page 80 of 355
7g. ‐ Community and Economic Development Department recommends
acceptance of a deed of dedication for additional right‐of‐way for Page 81 of 355
7g. ‐ Community and Economic Development Department recommends
acceptance of a deed of dedication for additional right‐of‐way for Page 82 of 355
CITY OF RENTON COUNCIL AGENDA BILL
Subject/Title:
Veterans and Human Services Levy
Meeting:
Regular Council - 11 Jul 2011
Exhibits:
Text of Veterans and Human Services Levy
Resolution
Submitting Data: Dept/Div/Board:
Executive
Staff Contact:
Marty Wine, x6526
Recommended Action:
Council concur
Fiscal Impact:
Expenditure Required: $ Transfer Amendment: $
Amount Budgeted: $ Revenue Generated: $
Total Project Budget: $ City Share Total Project: $
SUMMARY OF ACTION:
The Veterans and Human Services Levy, approved county-wide by voters in 2005, generates funding to
help veterans, military personnel and their families and other individuals and families in need across
the county through a variety of housing and supportive services. The current levy generates an average
of $14.6 million per year for six years to implement housing and human services for these two groups.
One half of the revenues are targeted for veterans and their families, and the remaining half is
dedicated to other King County residents in need. The levy expires this year. The County recently placed
the Veterans and Human Services Levy renewal on the August 16, 2011 Primary Election ballot. The
proposed renewal of the levy would be for a consecutive six-year period at a first-year rate of not more
than $0.05 per $1,000 of assessed valuation, with subsequent maximum levy collections being
increased by the greater of 1% or the percentage increase in the consumer price index as long as that
amount does not exceed 3%. A homeowner with an assessed valuation of $400,000 in 2012 would pay
$20 in the first year from this property tax. It would generate over $16 million in 2012 and continues to
dedicate half of levy proceeds to veterans and their families and the other half to other vulnerable
individuals and families. Funds are targeted to the geographic areas with the most extreme need,
highest levels of homelessness and most low-income, disabled veterans. South King County and south
Seattle have the highest levels of poverty and are the most ethnically diverse. South King County has
37% of the population of King County, with 33% of persons in poverty, 47% of disabled veterans. 40% of
current clients and 36% of sites that are funded by the levy are in South King County.
RCW 42.17.130(1) provides that if the City Council is to take action to support or oppose the measure,
action may be taken at an open public meeting by members of the elected legislative body so long as
the notice includes the title and number of the ballot proposition, and “members of the legislative
body…or members of the public are afforded an approximately equal opportunity for the expression of
an opposing view.”
STAFF RECOMMENDATION:
Set a public meeting date of August 1, 2011 to consider the Veterans and Human Services Levy, solicit
public comment, and consider a position supporting or opposing the measure.
7h. ‐ Executive Department recommends setting a public meeting on
8/1/2011 to consider The Veterans and Human Services Levy, solicit
Page 83 of 355
7h. ‐ Executive Department recommends setting a public meeting on
8/1/2011 to consider The Veterans and Human Services Levy, solicit
Page 84 of 355
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you expressly agree to be bound by terms and conditions of the site.
The details.
Simple majority (RCW 84.55.010)
! "
# $ $
The King County council has passed Ordinance No. 17072 concerning funding for regional veterans, health,
and human services. This proposition would replace an expiring levy and fund capital facilities and services
that reduce medical costs, homelessness, and criminal justice system involvement with half of proceeds
supporting veterans and their families. It would authorize King County to levy an additional property tax of 5
cents per $1,000 of assessed valuation for collection in 2012 and authorize annual increases by the
percentage increase in the consumer price index or 1%, whichever is greater, with a maximum increase of
3%, for the five succeeding years. Should this proposition be:
APPROVED
REJECTED
Page 1 of 1Measure Information - King County
06/29/2011http://your.kingcounty.gov/elections/contests/measureinfo.aspx?cid=38652&eid=1248
7h. ‐ Executive Department recommends setting a public meeting on
8/1/2011 to consider The Veterans and Human Services Levy, solicit
Page 85 of 355
7h. ‐ Executive Department recommends setting a public meeting on
8/1/2011 to consider The Veterans and Human Services Levy, solicit
Page 86 of 355
7h. ‐ Executive Department recommends setting a public meeting on
8/1/2011 to consider The Veterans and Human Services Levy, solicit
Page 87 of 355
7h. ‐ Executive Department recommends setting a public meeting on
8/1/2011 to consider The Veterans and Human Services Levy, solicit
Page 88 of 355
CITY OF RENTON COUNCIL AGENDA BILL
Subject/Title:
2011 2nd Quarter Budget Amendment Ordinance
Meeting:
Regular Council - 11 Jul 2011
Exhibits:
Issue Paper
2011 2nd Quarter Budget Amendment Detail
Budget Amendment Ordinance
Submitting Data: Dept/Div/Board:
Finance & Information Technology
Staff Contact:
Iwen Wang
Recommended Action:
Refer to Finance Committee
Fiscal Impact:
Expenditure Required: $ N/A Transfer Amendment: $3,104,909.00
Amount Budgeted: $ N/A Revenue Generated: $N/A
Total Project Budget: $ N/A City Share Total Project: $ N/A
SUMMARY OF ACTION:
The proposed budget amendment increases the overall 2011/2012 City budget appropriations by $3.1
million, and:
1) Makes minor corrections to 2011/2012 adopted budget;
2) Recognizes grants, contributions, and associated costs; and
3) Provides for new cost items in the 2011/2012 budget to cover necessary expenditures that were not
included in the adopted budget.
STAFF RECOMMENDATION:
Approve the proposed 2011 Second Quarter Budget Amendment and adopt the ordinance
7i. ‐ Finance and Information Services Department recommends approval
of second quarter 2011 Budget amendment increasing appropriations by Page 89 of 355
FINANCE AND
INFORMATION TECHNOLOGY
M E M O R A N D U M
DATE:July 5, 2011
TO:Terri Briere, Council President
Members of the Renton City Council
VIA:Denis Law, Mayor
FROM:Iwen Wang, Administrator
SUBJECT:2011 2nd Quarter Budget Amendment Ordinance
ISSUE
Should the 2011/2012 Biennial Budget be amended to incorporate changes as detailed below?
RECOMMENDATION
Adopt the ordinance amending the 2011/2012 Biennial Budget.
BACKGROUND SUMMARY
The proposed 2011 2nd quarter budget amendments are primarily housekeeping in nature. It will 1)
incorporate grants and associated expenditures awarded to the city during the period; 2) make
corrections to 2011/2012 budget due to errors/omissions found; 3) establish a new sub-fund Library
Development Fund (fund 336), and move appropriations from the Municipal CIP Fund (fund 316) to this
new fund to better account for the resources and costs associated with the project. Below is a summary
of the changes.
General Governmental Adjustments:
The proposed appropriation amendment will increase the appropriation by a total of $ 1.9 million over
the 2-year period:
1.$1.67 million ($642 for 2011 and $1.03 million for 2012) for the 9 firefighter positions added
with the Staffing for Adequate Fire and Emergency Response (SAFER) Grant the city received in
May.
2.$8k for the 2011 Site Specific Performance Network 4Culture Grant. The purpose of this grant is
working with veterans in creating various artworks.
3.$163k for December 2009 Real Estate Excise Tax (REET) should be recorded in Debt Service
Fund. To correct this, a fund transfer from general fund (000) to debt service fund (201) is
required. Since both funds are general governmental sub funds, no net impact on fund balance.
4.Correct Police Department salaries and benefits budget by $540k and $730k for 2011 and 2012,
respectively. The original budgets for Police salaries and benefits were understated due to staff
using 2009 position information as base for 2011/2012 budget and did not catch the changes for
a group of employees in the department. The increases are offset by anticipated savings in
SCORE Jail services and startup costs in 2011, and the state legislature approved a lower than
budgeted PERS contribution rate for 2011 and 2012. No net impact to fund balance during
current biennium.
5.A budget correction of $4k ($2k per year) for pagers in the Public Works Transportation division
that was missed in the adopted 2011/2012 budget.
6.A budget correction of $16k for intermittent staffing for the specialized recreation program in
Community Services Recreation division that was missed in the adopted 2011/2012 budget. We
have corrected 2011 previously this would correct the 2012 budget as well.
7.A budget correction of $30k ($15k per year) for intermittent staffing for Aquatics in Community
7i. ‐ Finance and Information Services Department recommends approval
of second quarter 2011 Budget amendment increasing appropriations by Page 90 of 355
Terri Briere, Council President
Members of the Renton City Council
Page 2 of 2
July 5, 2011
h:\finance\council\2011\ip 2011 carryforward budget adjustment revised.doc
Services Recreation division that was missed in the adopted 2011/2012 budget.
Items 1 through 4 are funded by grant revenues or expenditure savings. Items 5 through 7
combined totals $50,304 minus the 2010 $8,500 4Culture grant revenue received in 2011 would
result in a net decrease in fund balance by $41,804. The remaining General Fund balance will be
slightly over $10 million or 10% of the annual expenditure budget.
Other Funds:
The proposed appropriation amendment for all other funds combined is $1.2 million; below are the
details of these adjustments.
1.Library Development: as mentioned earlier, staff recommends creation of a new fund: Library
Development Fund (fund 336) to better track the resources and costs. The budget amendment
will delete the $19.6 million in the Municipal CIP Fund and move this budget to the new Library
Development Fund for the construction of the two new libraries. It will also true up the budget
to the $19.8 million preliminary budget available; and to recognize $160,000 in bond issue costs
that will be covered by the bond proceeds. This is a combined increase in appropriation of
$360k.
2.State and local Utility tax liability for City utilities: during the carry-forward budget adjustments
we made correction to utility funds for 2011 state and local utility taxes payable based on
revenue budgets. This adjustment will also bring 2012 tax liabilities in line with revenue. Water
Fund (405): $360k and Wastewater Fund (406): $313k; and Surface Water Fund (407): $27k for a
total of $700k.
3.Equipment Rental Fund (501): $154k expenditure increase for the purchase of:
i.$29k for one NPDES vehicle for Surface Water, which is funded by the NPDES Grant.
ii.$30k to move up replacement for pickup truck C222 from 2012 to 2011, which will have no
budget impact.
iii.$125k for one Boom Truck, which replaces D099 used by Transportation Systems for
streetlights, signals, and sign maintenance; and will be funded with replacement reserves
already collected.
CONCLUSION
The 2011 2nd quarter budget amendments will updated funding sources and appropriations for various
operating and capital items and will make minor corrections to the adopted 2011/2012 budget as
identified herein. Staff recommends Council approve the proposed adjustments.
Attachments:
2011 2nd Quarter Budget Amendment Detail
Budget Amendment Ordinance Exhibits: 2011 (Exh. A); and 2012 (Exh. B) adjusted budget by fund.
7i. ‐ Finance and Information Services Department recommends approval
of second quarter 2011 Budget amendment increasing appropriations by Page 91 of 355
2011/2012 2nd Quarter Budget Amendment Detail 1/2
GENERAL FUND (Fund 0XX)
Adjusted 2011 Adjustment 2012 Adjustment Amended
Beginning Fund Balance 11,407,119 ‐ 11,407,119
REVENUES 198,711,402
CED 4Culture Grant 8,500 ‐
CED 2011 Site Specific Performance Network 4Culture Grant 8,000 ‐
Fire SAFER Grant 642,318 1,027,709
FIT Correct Dec 2009 REET Allocation 163,067 ‐
Total Revenue Adjustment 198,711,402 821,885 1,027,709 200,560,996
EXPENDITURES 200,047,254
FIT Correct Dec 2009 REET Allocation 163,067 ‐
CED 2011 Site Specific Performance Network 4Culture Grant 8,000 ‐
Fire SAFER Grant 642,318 1,027,709
PW Pager budget was not included in 2011/2012 original budget due to error 1,994 1,994
CS Specialized Recreation‐Intermittent Wages/Benefits ‐ 16,316
CS Correction to 2011/2012 Intermittent Budget for Recreation 15,000 15,000
Police Police Salaries/Benefits correction 540,000 730,000
Police SCORE service/startup cost saving (540,000) ‐
FIT General Fund Dept's PERS contribution reduction (230,000) (500,000)
Total Expenditure Adjustment 200,047,254 600,379 1,291,019 201,938,651
Ending Fund Balance 10,071,268 221,506 (263,310) 10,029,464
MUNICIPAL CIP FUND (Fund 316)
Adjusted 2011 Adjustment 2012 Adjustment Amended
Beginning Fund Balance 5,759,297 ‐ 5,759,297
REVENUES 22,508,558
CS Move library construction budget to new fund (1,800,000) (800,000)
CS Move library construction budget to new fund (10,000,000) (7,000,000)
Total Revenue Adjustment 22,508,558 (11,800,000) (7,800,000) 2,908,558
EXPENDITURES 28,251,499
CS Move library construction budget to new fund (11,800,000) (7,800,000)
Total Expenditure Adjustment 28,251,499 (11,800,000) (7,800,000) 8,651,499
Ending Fund Balance 16,356 ‐ ‐ 16,356
NEW LIBRARY DEVELOPMENT FUND (Fund 336)
Adjusted 2011 Adjustment 2012 Adjustment Amended
Beginning Fund Balance ‐ ‐ ‐
REVENUES ‐
CS Move library construction budget to new fund ‐ Property Tax 1,800,000 ‐
CS Move library construction budget to new fund ‐ Bond Proceeds 18,160,000 ‐
Total Revenue Adjustment ‐ 19,960,000 ‐ 19,960,000
EXPENDITURES ‐
CS Library ‐ Bond Issue Costs 160,000 ‐
CS Library ‐ Construction 11,800,000 8,000,000
Total Expenditure Adjustment ‐ 11,960,000 8,000,000 19,960,000
Ending Fund Balance ‐ 8,000,000 (8,000,000) ‐
WATER UTILITY FUND (Fund 405/425)
Adjusted 2011 Adjustment 2012 Adjustment Amended
Beginning Fund Balance 6,759,754 ‐ 6,759,754
REVENUES 30,984,450
Total Revenue Adjustment 30,984,450 ‐ ‐ 30,984,450
EXPENDITURES 32,091,094
PW State Tax ‐ 111,161
PW Gross Rec Tax/Wtr Util To Gen ‐ 248,395
Total Expenditure Adjustment 32,091,094 ‐ 359,556 32,450,650
Ending Fund Balance 5,653,110 ‐ (359,556) 5,293,554
H:\Finance\Budget\2011-2012 Budget\2.Budget Adjustments\2011 2nd Quarter\2011 2nd Quarter Budget Adjustment.xlsx 07/06/2011
7i. ‐ Finance and Information Services Department recommends approval
of second quarter 2011 Budget amendment increasing appropriations by Page 92 of 355
2011/2012 2nd Quarter Budget Amendment Detail 2/2
WASTEWATER UTILITY FUND (Fund 406/416/426)
Adjusted 2011 Adjustment 2012 Adjustment Amended
Beginning Fund Balance 1,353,232 ‐ 1,353,232
REVENUES 44,245,860
Total Revenue Adjustment 44,245,860 ‐ ‐ 44,245,860
EXPENDITURES 43,365,587
PW External Taxes & Operating Assessment ‐ (180,295)
PW Interfund Taxes & Operating Assessment ‐ 493,473
Total Expenditure Adjustment 43,365,587 ‐ 313,178 43,678,765
Ending Fund Balance 2,233,505 ‐ (313,178) 1,920,327
SURFACEWATER UTILITY FUND (Fund 407/427)
Adjusted 2011 Adjustment 2012 Adjustment Amended
Beginning Fund Balance 3,273,863 ‐ 3,273,863
REVENUES 19,018,830
Total Revenue Adjustment 19,018,830 ‐ ‐ 19,018,830
EXPENDITURES 19,834,245
PW State Tax ‐ 18,527
PW Gross Rec Tx/Strm Dr To Gen ‐ 8,250
PW NPDES Vehicle Purchase transfer, funded by 2011 Municipal Stormwater Capacity Grant (29,000) ‐
PW NPDES Vehicle Purchase transfer, funded by 2011 Municipal Stormwater Capacity Grant 29,000 ‐
Total Expenditure Adjustment 19,834,245 ‐ 26,777 19,861,022
Ending Fund Balance 2,458,448 ‐ (26,777) 2,431,671
EQUIPMENT RENTAL FUND (Fund 501)
Adjusted 2011 Adjustment 2012 Adjustment Amended
Beginning Fund Balance 5,293,107 ‐ 5,293,107
REVENUES 6,291,294
PW NPDES Vehicle Purchase transfer, funded by 2011 Municipal Stormwater Capacity Grant 29,000 ‐
Total Revenue Adjustment 6,291,294 29,000 ‐ 6,320,294
EXPENDITURES 6,942,493
PW NPDES Vehicle Purchase transfer, funded by 2011 Municipal Stormwater Capacity Grant 29,000 ‐
PW Move up replacement vehicle C222 to 2011 instead of 2012 30,000 (30,000)
PW Replacing Boom Truck D99 125,000 ‐
Total Expenditure Adjustment 6,942,493 184,000 (30,000) 7,096,493
Ending Fund Balance 4,641,908 (155,000) 30,000 4,516,908
H:\Finance\Budget\2011-2012 Budget\2.Budget Adjustments\2011 2nd Quarter\2011 2nd Quarter Budget Adjustment.xlsx 07/06/2011
7i. ‐ Finance and Information Services Department recommends approval
of second quarter 2011 Budget amendment increasing appropriations by Page 93 of 355
7i. ‐ Finance and Information Services Department recommends approval
of second quarter 2011 Budget amendment increasing appropriations by Page 94 of 355
7i. ‐ Finance and Information Services Department recommends approval
of second quarter 2011 Budget amendment increasing appropriations by Page 95 of 355
7i. ‐ Finance and Information Services Department recommends approval
of second quarter 2011 Budget amendment increasing appropriations by Page 96 of 355
7i. ‐ Finance and Information Services Department recommends approval
of second quarter 2011 Budget amendment increasing appropriations by Page 97 of 355
CITY OF RENTON COUNCIL AGENDA BILL
Subject/Title:
Refunding of 2001 LTGO Bonds
Meeting:
Regular Council - 11 Jul 2011
Exhibits:
Issue Paper
Draft Ordinance
Submitting Data: Dept/Div/Board:
Finance & Information Technology
Staff Contact:
Iwen Wang, FIT Administrator
Recommended Action:
Refer to Finance Committee
Fiscal Impact:
Expenditure Required: $ Transfer Amendment: $
Amount Budgeted: $ Revenue Generated: $
Total Project Budget: $ City Share Total Project: $
SUMMARY OF ACTION:
The City issued $19.5 million of Limited Tax General Obligation Bonds (LTGO) in 2001 for 1) $13.5
million to refinance the 1997 LTGO issued for the acquisition and remodeling of the current City Hall;
and 2) $6 million to provide “new money” for the development of City Center Garage which was
refinanced in 2010. Of the $13.5 million City Hall portion of the bonds, $9.95 million remaining balance
can be redeemed at face value on December 1, 2011.
The proposed refinancing plan would issue approximately $10.15 million of bonds at an “all-in” interest
cost of approximately 2.5%, to replace the remaining $9.95 million City Hall portion of the bonds
carrying an average interest rate of 5.25%.
Depending on the actual interest rates for the new bonds, the anticipated saving is between $150,000
to $190,000 per year, for a cumulative savings of $900k to over $1 million over the remaining six-year
life of the 2001 bonds.
STAFF RECOMMENDATION:
Approve the proposed refinancing plan and adopt the ordinance
7j. ‐ Finance and Information Services Department requests approval of
an ordinance authorizing the issuance of revenue bonds in the amount Page 98 of 355
FINANCE AND
INFORMATION TECHNOLOGY
M E M O R A N D U M
DATE:July 1, 2011
TO:Terri Briere, Council President
Members of the Renton City Council
VIA:Denis Law, Mayor
FROM:Iwen Wang, F&IT Administrator
SUBJECT:Refinancing 2001 LTGO Refunding Bonds
ISSUE
Should the City refinance the 2001 Limited Tax General Obligation (LTGO) Refunding Bonds
issued in 2001 to refinance the 1997 bonds used to acquire and make improvements to the
current City Hall?
RECOMMENDATION
Staff recommends approval of the proposed refinancing plan and adoption of the necessary
ordinance authorizing the issuance of approximately $10.15 million of bonds at an “all-in”
interest cost of approximately 2.5%, which will replace the existing $9.95 million of bonds
carrying an average interest rate of 5.25%.
BACKGROUND
The City issued $19.5 million of Limited Tax General Obligation Bonds (LTGO) in 2001:
1)$6 million to provide “new money” for the development of City Center Garage; and
2)$13.5 million to refinance the 1997 LTGO issued for the acquisition and remodeling of
the current City Hall.
The $6 million parking garage portion of the issue was advance refinanced last year (2010). The
City Hall portion of the bonds, have been advance refunded once before, and cannot be
refinanced again until later this year when the remaining principal can be called/redeemed. Of
the $13.5 million issued, $9.95 million of principal balance is remaining and can be redeemed at
face value on December 1, 2011. The new refunding bonds can be issued within 90 days from
the payment of the 2001 bonds, or as early as September 2nd with pricing (setting interest rates)
as early as August 2nd.
The new issue is expected to be around $10.15 million, and will follow the same level
amortization schedule as with the 2001 bonds. Depending upon the actual interest rates at the
time of pricing, we anticipate saving between $150,000 to $190,000 per year, for the remaining
six years of the term for a cumulative savings of $900k to over $1 million.
CONCLUSION
Staff recommends the Council approve the refinancing ordinance and the associated
documents necessary to issue the new bonds, including the escrow agreement, and the
redemption of the outstanding 2001 bonds.
7j. ‐ Finance and Information Services Department requests approval of
an ordinance authorizing the issuance of revenue bonds in the amount Page 99 of 355
SUMMARY OF REFUNDING RESULTS
City of Renton
Proposed Current Refunding of 2001 LTGO Bonds
Current Interest Rates + 50bp
Dated Date 12/01/2011
Delivery Date 12/01/2011
Arbitrage yield 2.188249%
Escrow yield 0.009836%
Bond Par Amount 9,620,000.00
True Interest Cost 2.330037%
Net Interest Cost 2.412325%
All-In TIC 2.508244%
Average Coupon 3.669683%
Average Life 3.590
Par amount of refunded bonds 9,950,000.00
Average coupon of refunded bonds 5.250000%
Average life of refunded bonds 3.648
PV of prior debt to 12/01/2011 @ 2.188249% 11,003,782.28
Net PV Savings 902,231.94
Percentage savings of refunded bonds 9.067658%
Percentage savings of refunding bonds 9.378710%
7j. ‐ Finance and Information Services Department requests approval of
an ordinance authorizing the issuance of revenue bonds in the amount Page 100 of 355
Jun 21, 2011 11:12 am Prepared by Seattle-Northwest Securities Corp.
(k:\city\RENTON:RENTON-R01LTR,R01LTR) Page 1
7j. ‐ Finance and Information Services Department requests approval of
an ordinance authorizing the issuance of revenue bonds in the amount Page 101 of 355
SAVINGS
City of Renton
Proposed Current Refunding of 2001 LTGO Bonds
Current Interest Rates + 50bp
Present Value
Prior Refunding Annual to 12/01/2011
Date Debt Service Debt Service Savings Savings @ 2.1882491%
06/01/2012 261,187.50 161,925.00 99,262.50 - 98,188.20
12/01/2012 1,716,187.50 1,651,925.00 64,262.50 163,525.00 62,879.02
06/01/2013 222,993.75 143,300.00 79,693.75 - 77,134.12
12/01/2013 1,752,993.75 1,673,300.00 79,693.75 159,387.50 76,299.31
06/01/2014 182,831.25 124,175.00 58,656.25 - 55,550.08
12/01/2014 1,792,831.25 1,689,175.00 103,656.25 162,312.50 97,104.64
06/01/2015 140,568.75 96,787.50 43,781.25 - 40,570.16
12/01/2015 1,835,568.75 1,716,787.50 118,781.25 162,562.50 108,878.11
06/01/2016 96,075.00 68,437.50 27,637.50 - 25,059.10
12/01/2016 1,881,075.00 1,748,437.50 132,637.50 160,275.00 118,961.70
06/01/2017 49,218.75 39,037.50 10,181.25 - 9,032.67
12/01/2017 1,924,218.75 1,774,037.50 150,181.25 160,362.50 131,796.76
11,855,750.00 10,887,325.00 968,425.00 968,425.00 901,453.88
Savings Summary
PV of savings from cash flow 901,453.88
Plus: Refunding funds on hand 778.06
Net PV Savings 902,231.94
7j. ‐ Finance and Information Services Department requests approval of
an ordinance authorizing the issuance of revenue bonds in the amount Page 102 of 355
Jun 21, 2011 11:12 am Prepared by Seattle-Northwest Securities Corp.
(k:\city\RENTON:RENTON-R01LTR,R01LTR) Page 2
7j. ‐ Finance and Information Services Department requests approval of
an ordinance authorizing the issuance of revenue bonds in the amount Page 103 of 355
SOURCES AND USES OF FUNDS
City of Renton
Proposed Current Refunding of 2001 LTGO Bonds
Current Interest Rates + 50bp
Dated Date 12/01/2011
Delivery Date 12/01/2011
Sources:
Bond Proceeds:
Par Amount 9,620,000.00
Premium 482,328.40
10,102,328.40
Uses:
Refunding Escrow Deposits:
Cash Deposit 1.34
SLGS Purchases 9,993,449.00
9,993,450.34
Delivery Date Expenses:
Cost of Issuance 60,000.00
Underwriter's Discount 48,100.00
108,100.00
Other Uses of Funds:
Additional Proceeds 778.06
10,102,328.40
7j. ‐ Finance and Information Services Department requests approval of
an ordinance authorizing the issuance of revenue bonds in the amount Page 104 of 355
Jun 21, 2011 11:12 am Prepared by Seattle-Northwest Securities Corp.
(k:\city\RENTON:RENTON-R01LTR,R01LTR) Page 3
7j. ‐ Finance and Information Services Department requests approval of
an ordinance authorizing the issuance of revenue bonds in the amount Page 105 of 355
BOND PRICING
City of Renton
Proposed Current Refunding of 2001 LTGO Bonds
Current Interest Rates + 50bp
Maturity Premium
Bond Component Date Amount Rate Yield Price (-Discount)
Tax Exempt Serial Bonds:
12/01/2012 1,490,000 2.500% 1.340% 101.148 17,105.20
12/01/2013 1,530,000 2.500% 1.530% 101.903 29,115.90
12/01/2014 1,565,000 3.500% 1.800% 104.943 77,357.95
12/01/2015 1,620,000 3.500% 2.070% 105.462 88,484.40
12/01/2016 1,680,000 3.500% 2.280% 105.734 96,331.20
12/01/2017 1,735,000 4.500% 2.680% 110.025 173,933.75
9,620,000 482,328.40
Dated Date 12/01/2011
Delivery Date 12/01/2011
First Coupon 06/01/2012
Par Amount 9,620,000.00
Premium 482,328.40
Production 10,102,328.40 105.013809%
Underwriter's Discount -48,100.00 -0.500000%
Purchase Price 10,054,228.40 104.513809%
Accrued Interest -
Net Proceeds 10,054,228.40
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BOND DEBT SERVICE
City of Renton
Proposed Current Refunding of 2001 LTGO Bonds
Current Interest Rates + 50bp
Annual
Period Debt
Ending Principal Coupon Interest Debt Service Service
06/01/2012 - - 161,925.00 161,925.00 -
12/01/2012 1,490,000 2.500% 161,925.00 1,651,925.00 1,813,850
06/01/2013 - - 143,300.00 143,300.00 -
12/01/2013 1,530,000 2.500% 143,300.00 1,673,300.00 1,816,600
06/01/2014 - - 124,175.00 124,175.00 -
12/01/2014 1,565,000 3.500% 124,175.00 1,689,175.00 1,813,350
06/01/2015 - - 96,787.50 96,787.50 -
12/01/2015 1,620,000 3.500% 96,787.50 1,716,787.50 1,813,575
06/01/2016 - - 68,437.50 68,437.50 -
12/01/2016 1,680,000 3.500% 68,437.50 1,748,437.50 1,816,875
06/01/2017 - - 39,037.50 39,037.50 -
12/01/2017 1,735,000 4.500% 39,037.50 1,774,037.50 1,813,075
9,620,000 1,267,325.00 10,887,325.00 10,887,325
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BOND SUMMARY STATISTICS
City of Renton
Proposed Current Refunding of 2001 LTGO Bonds
Current Interest Rates + 50bp
Dated Date 12/01/2011
Delivery Date 12/01/2011
Last Maturity 12/01/2017
Arbitrage Yield 2.188249%
True Interest Cost (TIC) 2.330037%
Net Interest Cost (NIC) 2.412325%
NIC w/Interest only 3.669683%
NIC w/Interest & OID 2.273046%
NIC w/Interest, OID & Und. Discount 2.412325%
All-In TIC 2.508244%
Average Coupon 3.669683%
Average Life (years) 3.590
Duration of Issue (years) 3.402
Par Amount 9,620,000.00
Bond Proceeds 10,102,328.40
Total Interest 1,267,325.00
Net Interest 833,096.60
Bond Years from Dated Date 34,535,000.00
Bond Years from Delivery Date 34,535,000.00
Total Debt Service 10,887,325.00
Maximum Annual Debt Service 1,816,875.00
Average Annual Debt Service 1,814,554.17
Underwriter's Fees (per $1000)
Average Takedown -
Other Fee 5.000000
Total Underwriter's Discount 5.000000
Bid Price 104.513809
Par Average Average PV of 1 bp
Bond Component Value Price Coupon Life change
Tax Exempt Serial Bonds 9,620,000.00 105.014 3.670% 3.590 3,385.80
9,620,000.00 3.590 3,385.80
All-In Arbitrage
TIC TIC Yield
Par Value 9,620,000.00 9,620,000.00 9,620,000.00
+ Accrued Interest - - -
+ Premium (Discount) 482,328.40 482,328.40 482,328.40
- Underwriter's Discount -48,100.00 -48,100.00
- Cost of Issuance Expense -60,000.00
- Other Amounts - - -
Target Value 10,054,228.40 9,994,228.40 10,102,328.40
Target Date 12/01/2011 12/01/2011 12/01/2011
Yield 2.330037% 2.508244% 2.188249%
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PROOF OF ARBITRAGE YIELD
City of Renton
Proposed Current Refunding of 2001 LTGO Bonds
Current Interest Rates + 50bp
Present Value
to 12/01/2011
Date Debt Service @ 2.1882491%
06/01/2012 161,925.00 160,172.51
12/01/2012 1,651,925.00 1,616,361.49
06/01/2013 143,300.00 138,697.44
12/01/2013 1,673,300.00 1,602,028.17
06/01/2014 124,175.00 117,599.26
12/01/2014 1,689,175.00 1,582,410.48
06/01/2015 96,787.50 89,688.73
12/01/2015 1,716,787.50 1,573,653.88
06/01/2016 68,437.50 62,052.73
12/01/2016 1,748,437.50 1,568,162.11
06/01/2017 39,037.50 34,633.54
12/01/2017 1,774,037.50 1,556,868.06
10,887,325.00 10,102,328.40
Proceeds Summary
Delivery date 12/01/2011
Par Value 9,620,000.00
Premium (Discount) 482,328.40
Target for yield calculation 10,102,328.40
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FORM 8038 STATISTICS
City of Renton
Proposed Current Refunding of 2001 LTGO Bonds
Current Interest Rates + 50bp
Dated Date 12/01/2011
Delivery Date 12/01/2011
Redemption
Bond Component Date Principal Coupon Price Issue Price at Maturity
Tax Exempt Serial Bonds:
12/01/2012 1,490,000.00 2.500% 101.148 1,507,105.20 1,490,000.00
12/01/2013 1,530,000.00 2.500% 101.903 1,559,115.90 1,530,000.00
12/01/2014 1,565,000.00 3.500% 104.943 1,642,357.95 1,565,000.00
12/01/2015 1,620,000.00 3.500% 105.462 1,708,484.40 1,620,000.00
12/01/2016 1,680,000.00 3.500% 105.734 1,776,331.20 1,680,000.00
12/01/2017 1,735,000.00 4.500% 110.025 1,908,933.75 1,735,000.00
9,620,000.00 10,102,328.40 9,620,000.00
Stated Weighted
Maturity Interest Issue Redemption Average
Date Rate Price at Maturity Maturity Yield
Final Maturity 12/01/2017 4.500% 1,908,933.75 1,735,000.00 - -
Entire Issue - - 10,102,328.40 9,620,000.00 3.6350 2.1882%
Proceeds used for accrued interest 0.00
Proceeds used for bond issuance costs (including underwriters' discount) 108,100.00
Proceeds used for credit enhancement 0.00
Proceeds allocated to reasonably required reserve or replacement fund 0.00
Proceeds used to currently refund prior issues 9,993,450.34
Proceeds used to advance refund prior issues 0.00
Remaining weighted average maturity of the bonds to be currently refunded 3.6482
Remaining weighted average maturity of the bonds to be advance refunded 0.0000
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FORM 8038 STATISTICS
City of Renton
Proposed Current Refunding of 2001 LTGO Bonds
Current Interest Rates + 50bp
Refunded Bonds
Bond
Component Date Principal Coupon Price Issue Price
2001 LTGO & Refunding Bonds (11/1/01):
SERIALS 12/01/2012 1,455,000.00 5.250% 100.000 1,455,000.00
SERIALS 12/01/2013 1,530,000.00 5.250% 100.000 1,530,000.00
SERIALS 12/01/2014 1,610,000.00 5.250% 100.000 1,610,000.00
SERIALS 12/01/2015 1,695,000.00 5.250% 100.000 1,695,000.00
SERIALS 12/01/2016 1,785,000.00 5.250% 100.000 1,785,000.00
SERIALS 12/01/2017 1,875,000.00 5.250% 100.000 1,875,000.00
9,950,000.00 9,950,000.00
Remaining
Last Weighted
Call Issue Average
Date Date Maturity
2001 LTGO & Refunding Bonds (11/1/01) 12/31/2011 11/01/2001 3.6482
All Refunded Issues 12/31/2011 - 3.6482
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ESCROW DESCRIPTIONS
City of Renton
Proposed Current Refunding of 2001 LTGO Bonds
Current Interest Rates + 50bp
Type of Type of Maturity First Int Par Max
Security SLGS Date Pmt Date Amount Rate Rate
Dec 1, 2011:
SLGS Certificate 12/31/2011 12/31/2011 9,993,449 0.010% 0.010%
9,993,449
SLGS Summary
SLGS Rates File 21JUN11
Total Certificates of Indebtedness 9,993,449.00
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ESCROW COST DETAIL
City of Renton
Proposed Current Refunding of 2001 LTGO Bonds
Current Interest Rates + 50bp
Type of Maturity Par Total
Security Date Amount Rate Cost
Global Proceeds Escrow:
SLGS 12/31/2011 9,993,449 0.010% 9,993,449.00
9,993,449 9,993,449.00
Purchase Cost of Cash Total
Date Securities Deposit Escrow Cost Yield
Global Proceeds Escrow:
12/01/2011 9,993,449 1.34 9,993,450.34 0.009836%
9,993,449 1.34 9,993,450.34
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ESCROW CASH FLOW
City of Renton
Proposed Current Refunding of 2001 LTGO Bonds
Current Interest Rates + 50bp
Present Value
Net Escrow to 12/01/2011
Date Principal Interest Receipts @ 0.0098358%
12/31/2011 9,993,449.00 81.91 9,993,530.91 9,993,449.00
9,993,449.00 81.91 9,993,530.91 9,993,449.00
Escrow Cost Summary
Purchase date 12/01/2011
Purchase cost of securities 9,993,449.00
Target for yield calculation 9,993,449.00
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ESCROW SUFFICIENCY
City of Renton
Proposed Current Refunding of 2001 LTGO Bonds
Current Interest Rates + 50bp
Escrow Net Escrow Excess Excess
Date Requirement Receipts Receipts Balance
12/01/2011 - 1.34 1.34 1.34
12/31/2011 9,993,531.25 9,993,530.91 -0.34 1.00
9,993,531.25 9,993,532.25 1.00
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ESCROW STATISTICS
City of Renton
Proposed Current Refunding of 2001 LTGO Bonds
Current Interest Rates + 50bp
Modified Yield to Yield to Perfect Value of
Total Duration Receipt Disbursement Escrow Negative Cost of
Escrow Cost (years) Date Date Cost Arbitrage Dead Time
Global Proceeds Escrow:
9,993,450.34 0.083 0.009836% 0.009836% 9,975,424.03 18,026.30 0.01
9,993,450.34 9,975,424.03 18,026.30 0.01
Delivery date 12/01/2011
Arbitrage yield 2.188249%
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PROOF OF COMPOSITE ESCROW YIELD
City of Renton
Proposed Current Refunding of 2001 LTGO Bonds
Current Interest Rates + 50bp
All restricted escrows funded by bond proceeds
Present Value
Security to 12/01/2011
Date Receipts @ 0.0098358%
12/31/2011 9,993,530.91 9,993,449.00
9,993,530.91 9,993,449.00
Escrow Cost Summary
Purchase date 12/01/2011
Purchase cost of securities 9,993,449.00
Target for yield calculation 9,993,449.00
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PRIOR BOND DEBT SERVICE
City of Renton
Proposed Current Refunding of 2001 LTGO Bonds
Current Interest Rates + 50bp
Period Annual
Ending Principal Coupon Interest Debt Service Debt Service
06/01/2012 - - 261,187.50 261,187.50 -
12/01/2012 1,455,000 5.250% 261,187.50 1,716,187.50 1,977,375.00
06/01/2013 - - 222,993.75 222,993.75 -
12/01/2013 1,530,000 5.250% 222,993.75 1,752,993.75 1,975,987.50
06/01/2014 - - 182,831.25 182,831.25 -
12/01/2014 1,610,000 5.250% 182,831.25 1,792,831.25 1,975,662.50
06/01/2015 - - 140,568.75 140,568.75 -
12/01/2015 1,695,000 5.250% 140,568.75 1,835,568.75 1,976,137.50
06/01/2016 - - 96,075.00 96,075.00 -
12/01/2016 1,785,000 5.250% 96,075.00 1,881,075.00 1,977,150.00
06/01/2017 - - 49,218.75 49,218.75 -
12/01/2017 1,875,000 5.250% 49,218.75 1,924,218.75 1,973,437.50
9,950,000 1,905,750.00 11,855,750.00 11,855,750.00
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an ordinance authorizing the issuance of revenue bonds in the amount Page 130 of 355
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ESCROW REQUIREMENTS
City of Renton
Proposed Current Refunding of 2001 LTGO Bonds
Current Interest Rates + 50bp
Period Principal
Ending Interest Redeemed Total
12/31/2011 43,531.25 9,950,000.00 9,993,531.25
43,531.25 9,950,000.00 9,993,531.25
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an ordinance authorizing the issuance of revenue bonds in the amount Page 132 of 355
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SUMMARY OF BONDS REFUNDED
City of Renton
Proposed Current Refunding of 2001 LTGO Bonds
Current Interest Rates + 50bp
Maturity Interest Par Call Call
Bond Date Rate Amount Date Price
2001 LTGO & Refunding Bonds (11/1/01), 01LTR:
SERIALS 12/01/2012 5.250% 1,455,000.00 12/31/2011 100.000
12/01/2013 5.250% 1,530,000.00 12/31/2011 100.000
12/01/2014 5.250% 1,610,000.00 12/31/2011 100.000
12/01/2015 5.250% 1,695,000.00 12/31/2011 100.000
12/01/2016 5.250% 1,785,000.00 12/31/2011 100.000
12/01/2017 5.250% 1,875,000.00 12/31/2011 100.000
9,950,000.00
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an ordinance authorizing the issuance of revenue bonds in the amount Page 134 of 355
Jun 21, 2011 11:12 am Prepared by Seattle-Northwest Securities Corp.
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7j. ‐ Finance and Information Services Department requests approval of
an ordinance authorizing the issuance of revenue bonds in the amount Page 135 of 355
UNREFUNDED BOND DEBT SERVICE
City of Renton
Proposed Current Refunding of 2001 LTGO Bonds
Current Interest Rates + 50bp
Period Annual
Ending Principal Coupon Interest Debt Service Debt Service
06/01/2012 - - 153,556.25 153,556.25 -
12/01/2012 - - 153,556.25 153,556.25 307,112.50
06/01/2013 - - 153,556.25 153,556.25 -
12/01/2013 - - 153,556.25 153,556.25 307,112.50
06/01/2014 - - 153,556.25 153,556.25 -
12/01/2014 - - 153,556.25 153,556.25 307,112.50
06/01/2015 - - 153,556.25 153,556.25 -
12/01/2015 - - 153,556.25 153,556.25 307,112.50
06/01/2016 - - 153,556.25 153,556.25 -
12/01/2016 - - 153,556.25 153,556.25 307,112.50
06/01/2017 - - 153,556.25 153,556.25 -
12/01/2017 - - 153,556.25 153,556.25 307,112.50
06/01/2018 - - 153,556.25 153,556.25 -
12/01/2018 1,385,000 5.250% 153,556.25 1,538,556.25 1,692,112.50
06/01/2019 - - 117,200.00 117,200.00 -
12/01/2019 1,460,000 5.250% 117,200.00 1,577,200.00 1,694,400.00
06/01/2020 - - 78,875.00 78,875.00 -
12/01/2020 1,540,000 5.000% 78,875.00 1,618,875.00 1,697,750.00
06/01/2021 - - 40,375.00 40,375.00 -
12/01/2021 1,615,000 5.000% 40,375.00 1,655,375.00 1,695,750.00
6,000,000 2,622,687.50 8,622,687.50 8,622,687.50
This portion was refunded in 2010
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7j. ‐ Finance and Information Services Department requests approval of
an ordinance authorizing the issuance of revenue bonds in the amount Page 137 of 355
Terri Briere, Council President
Members of the Renton City Council
Page 40 of 2
July 6, 2011
COST OF ISSUANCE
City of Renton
Proposed Current Refunding of 2001 LTGO Bonds
Current Interest Rates + 50bp
Cost of Issuance $/1000 Amount
Other Cost of Issuance 6.23701 60,000.00
6.23701 60,000.00
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an ordinance authorizing the issuance of revenue bonds in the amount Page 138 of 355
Terri Briere, Council President
Members of the Renton City Council
Page 41 of 2
July 6, 2011
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CITY OF RENTON, WASHINGTON
LIMITED TAX GENERAL OBLIGATION REFUNDING BONDS, SERIES [2011B]
ORDINANCE NO. _______
AN ORDINANCE OF THE CITY OF RENTON, WASHINGTON,
PROVIDING FOR THE ISSUANCE OF LIMITED TAX GENERAL
OBLIGATION REFUNDING BONDS OF THE CITY IN THE PRINCIPAL
AMOUNT OF NOT TO EXCEED $[9,800,000] TO REFUND CERTAIN
OUTSTANDING LIMITED TAX GENERAL OBLIGATION BONDS
AND TO PAY COSTS OF ISSUING THE BONDS; PROVIDING THE
FORM AND TERMS OF THE BONDS; APPROVING AN ESCROW
DEPOSIT AGREEMENT; AND DELEGATING THE AUTHORITY TO
APPROVE THE FINAL TERMS OF THE BONDS.
PASSED: July 25, 2011
PREPARED BY:
PACIFICA LAW GROUP LLP
Seattle, Washington
TABLE OF CONTENTS*
Page
Section 1. Definitions and Interpretation of Terms 2
Section 2. Authorization of Bonds and Bond Details 8
Section 3. Registration, Exchange and Payments 9
Section 4. Redemption Prior to Maturity and Purchase of Bonds 14
Section 5. Form of Bonds 18
Section 6. Execution of Bonds 20
Section 7. Refunding Plan; Application of Bond Proceeds 21
Section 8. Tax Covenants 24
Section 9. Bond Fund and Provision for Tax Levy Payments 26
Section 10. Defeasance 27
Section 11. Sale of Bonds 28
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Section 12. Bond Insurance 30
Section 13. Undertaking to Provide Ongoing Disclosure 31
Section 14. Lost, Stolen or Destroyed Bonds 35
Section 15. Severability; Ratification 36
Section 16. Effective Date of Ordinance 36
Exhibit A: Form of Escrow Deposit Agreement
* This Table of Contents is provided for convenience only and is not a part of this ordinance.
CITY OF RENTON, WASHINGTON
ORDINANCE NO. _______
AN ORDINANCE OF THE CITY OF RENTON, WASHINGTON,
PROVIDING FOR THE ISSUANCE OF LIMITED TAX GENERAL
OBLIGATION REFUNDING BONDS OF THE CITY IN THE PRINCIPAL
AMOUNT OF NOT TO EXCEED $[9,800,000] TO REFUND CERTAIN
OUTSTANDING LIMITED TAX GENERAL OBLIGATION BONDS
AND TO PAY COSTS OF ISSUING THE BONDS; PROVIDING THE
FORM AND TERMS OF THE BONDS; APPROVING AN ESCROW
DEPOSIT AGREEMENT; AND DELEGATING THE AUTHORITY TO
APPROVE THE FINAL TERMS OF THE BONDS.
7j. ‐ Finance and Information Services Department requests approval of
an ordinance authorizing the issuance of revenue bonds in the amount Page 141 of 355
WHEREAS, the City of Renton, Washington (the “City”) has outstanding its Limited
TaxGeneral Obligation and Refunding Bonds, 2001, issued on November 1, 2001
pursuant toOrdinance No. 4922 adopted by the City Council (the “Council”) of the City on
October 22, 2001(the “2001 Bond Ordinance”), which remain outstanding as follows:
Maturity Dates
(December 1)
Principal Amounts
Interest Rates
2011 $ 1,400,000 4.00 %
2012 1,455,000 5.25
2013 1,530,000 5.25
2014 1,610,000 5.25
2015 1,695,000 5.25
2016 1,785,000 5.25
2017 1,875,000 5.25
(the “2001 Bonds”); and
WHEREAS, the 2001 Bond Ordinance provides that the City may call the 2001 Bonds
maturing on and after December 1, 2012 (the “Refunding Candidates”) for redemption on and
after December 1, 2011, in whole or in part on any date, at the price of par plus accrued
interest, if any, to the date of redemption; and
WHEREAS, after due consideration it appears that all or a portion of the Refunding
Candidates (the “Refunded Bonds”) may be defeased and refunded by the proceeds of limited
tax general obligation bonds at a savings to the City and its taxpayers; and
WHEREAS, the Council deems it in the best interest of the City to issue limited tax
general obligation refunding bonds in the aggregate principal amount of not to exceed
$[9,800,000] (the “Bonds”) to redeem and defease the Refunded Bonds and to pay costs of
issuing the Bonds; and
WHEREAS, if determined to be in the best interest of the City, the Bonds authorized
7j. ‐ Finance and Information Services Department requests approval of
an ordinance authorizing the issuance of revenue bonds in the amount Page 142 of 355
herein may be combined into one single series with the City’s Limited Tax General Obligation
Bonds, Series 2011A, authorized to be issued the aggregate principal amount of not to exceed
$18,000,000 pursuant to Ordinance No. 5613 adopted by the Council on June 20, 2011; and
WHEREAS, the City has received a proposal from Seattle-Northwest Securities
Corporation, Seattle, Washington (the “Underwriter”) and now desires to issue and sell the
Bonds to the Underwriter 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:
Acquired Obligations means the Government Obligations acquired by the City under the
terms of this ordinance and the Escrow Agreement to effect the defeasance and refunding of
the Refunded Bonds.
Beneficial Owner means any person that has or shares the power, directly or indirectly
to make investment decisions concerning ownership of any Bonds (including persons holding
Bonds through nominees, depositories or other intermediaries).
Bond Fund means the “City of Renton Limited Tax General Obligation Bond Debt Service
Fund, 2011” authorized to be created pursuant to Section 9.
Bond Insurance Policy means the municipal bond insurance policy, if any, issued by the
Insurer insuring the payment when due of the principal of and interest on the Bonds as
provided therein.
Bond Purchase Contract means the contract for the purchase of the Bonds between the
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Underwriter and City, executed pursuant to Section 11.
Bond Register means the registration books showing the name, address and tax
identification number of each Registered Owner of the Bonds, maintained pursuant to
Section 149(a) of the Code.
Bond Registrar means, initially, the fiscal agency of the State of Washington, for the
purposes of registering and authenticating the Bonds, maintaining the Bond Register, effecting
transfer of ownership of the Bonds and paying interest on and principal of the Bonds.
Bond Year means each one-year period that ends on the date selected by the City. The
first and last Bond Years may be short periods. If no day is selected by the City before the
earlier of the final maturity date of the Bonds or the date that is five years after the date of
issuance of the Bonds, Bond Years end on each anniversary of the date of issue and on the final
maturity date of the Bonds.
Bonds mean the City of Renton, Washington Limited Tax General Obligation Refunding
Bonds, Series [2011B], or other series designation as approved by the Designated
Representative, issued pursuant to this ordinance.
Call Date means December 1, 2011.
City means the City of Renton, Washington, a municipal corporation duly organized and
existing by virtue of the laws of the State of Washington.
Code means the Internal Revenue Code of 1986, as amended, and shall include all
applicable regulations and rulings relating thereto.
Commission means the Securities and Exchange Commission.
Council means the City Council as the general legislative authority of the City, as duly
and regularly constituted from time to time.
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Designated Representative means the Mayor, the Chief Administrative Officer and the
Finance Director of the City and any successor to the functions of such offices. The signature of
one Designated Representative shall be sufficient to bind the City.
DTC means The Depository Trust Company, New York, New York, a limited purpose trust
company organized under the laws of the State of New York, as depository for the Bonds
pursuant to Section 3.
Escrow Agent means U.S. Bank National Association, Seattle, Washington.
Escrow Agreement means the Escrow Deposit Agreement substantially in the form
attached as Exhibit A hereto.
Federal Tax Certificate means the certificate executed by the Designated
Representative setting forth the requirements of the Code for maintaining the tax exemption of
interest on the Bonds.
Finance Director shall mean the City’s Finance and Information Services Administrator
or the successor to such officer.
Government Obligations mean those obligations now or hereafter defined as such in
chapter 39.53 RCW.
Insurer means the municipal bond insurance company, if any, selected and designated
pursuant to Section 12, or any successor thereto or assignee thereof, as issuer of a Bond
Insurance Policy for all or a portion of the Bonds.
Letter of Representations means the blanket issuer letter of representations from the
City to DTC.
MSRB means the Municipal Securities Rulemaking Board or any successors to its
functions.
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Net Proceeds, when used with reference to the Bonds, mean the principal amount of
the Bonds, plus accrued interest and original issue premium, if any, and less original issue
discount, if any.
Private Person means any natural person engaged in a trade or business or any trust,
estate, partnership, association, company or corporation.
Private Person Use means the use of property in a trade or business by a Private Person
if such use is other than as a member of the general public. Private Person Use includes
ownership of the property by the Private Person as well as other arrangements that transfer to
the Private Person the actual or beneficial use of the property (such as a lease, management or
incentive payment contract or other special arrangement) in such a manner as to set the
Private Person apart from the general public. Use of property as a member of the general
public includes attendance by the Private Person at municipal meetings or business rental of
property to the Private Person on a day-to-day basis if the rental paid by such Private Person is
the same as the rental paid by any Private Person who desires to rent the property. Use of
property by nonprofit community groups or community recreational groups is not treated as
Private Person Use if such use is incidental to the governmental uses of property, the property
is made available for such use by all such community groups on an equal basis and such
community groups are charged only a de minimis fee to cover custodial expenses.
Refunded Bonds mean those Refunding Candidates designated by the Designated
Representative for refunding pursuant to Section 7.
Refunding Account means the account by that name established pursuant to Section 7.
Refunding Candidates mean the 2001 Bonds maturing on and after December 1, 2012,
as shown in the recitals to this ordinance.
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Registered Owner means the person named as the registered owner of a Bond in the
Bond Register. For so long as the Bonds are held in book-entry only form, DTC shall be deemed
to be the sole Registered Owner.
Rule means the Commission’s Rule 15c2-12 under the Securities Exchange Act of 1934,
as the same may be amended from time to time.
2001 Bond Ordinance means Ordinance No. 4922 adopted by the Council on
October 22, 2001, authorizing the issuance of the 2001 Bonds.
2001 Bonds mean the Limited Tax General Obligation and Refunding Bonds, 2001 of the
City, issued on November 1, 2001 pursuant to the 2001 Bond Ordinance as described in the
recitals of this ordinance.
Underwriter means Seattle-Northwest Securities Corporation, Seattle, Washington.
(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
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this ordinance, and any table of contents or marginal notes appended to copies hereof, shall be
solely for convenience of reference and shall not constitute a part of this ordinance, nor shall
they affect its meaning, construction or effect; and
(5) All references herein to “articles,” “sections” and other
subdivisions or clauses are to the corresponding articles, sections, subdivisions or clauses
hereof.
Section 2. Authorization of Bonds and Bond Details. For the purpose of
refunding the Refunded Bonds and paying costs of issuance of the Bonds, including, but not
limited to, the payment of the premium cost for a Bond Insurance Policy, if any, the City shall
issue and sell its limited tax general obligation refunding bonds in the aggregate principal
amount of not to exceed $[9,800,000] (the “Bonds”).
The Bonds shall be general obligations of the City, shall be designated “City of Renton,
Washington Limited Tax General Obligation Refunding Bonds, Series [2011B]” or other such
designation as set forth in the Bond Purchase Contract and approved by the Designated
Representative; shall be dated as of their date of delivery; shall be fully registered as to both
principal and interest; shall be in the denomination of $5,000 each, or any integral multiple
thereof, within a maturity; shall be numbered separately in such manner and with any
additional designation as the Bond Registrar deems necessary for purposes of identification;
and shall bear interest from their date payable on the first days of each December and June,
commencing on December 1, 2011, at rates set forth in the Bond Purchase Contract; and shall
mature on the dates and in the principal amounts set forth in the Bond Purchase Contract and
as approved by the Designated Representative pursuant to Section 11. If determined to be in
the best interest of the City, the Bonds authorized herein may be combined into one series with
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the City’s Limited Tax General Obligation Bonds, Series 2011A, authorized to be issued the
aggregate principal amount of not to exceed $18,000,000 pursuant to Ordinance No. 5613
adopted by the Council on June 20, 2011. The Bonds of any of the maturities may be combined
and issued as term bonds, subject to mandatory redemption as provided in the Bond Purchase
Contract.
Section 3. Registration, Exchange and Payments.
(a) Bond Registrar/Bond Register. The City hereby specifies and adopts the
system of registration approved by the Washington State Finance Committee from time to time
through the appointment of state fiscal agencies. The City shall cause a bond register to be
maintained by the Bond Registrar. So long as any Bonds remain outstanding, the Bond
Registrar shall make all necessary provisions to permit the exchange or registration or transfer
of Bonds at its principal corporate trust office. The Bond Registrar may be removed at any time
at the option of the Finance Director upon prior notice to the Bond Registrar and a successor
Bond Registrar appointed by the Finance Director. No resignation or removal of the Bond
Registrar shall be effective until a successor shall have been appointed and until the successor
Bond Registrar shall have accepted the duties of the Bond Registrar hereunder. The Bond
Registrar is authorized, on behalf of the City, to authenticate and deliver Bonds transferred or
exchanged in accordance with the provisions of such Bonds and this ordinance and to carry out
all of the Bond Registrar’s powers and duties under this ordinance. The Bond Registrar shall be
responsible for its representations contained in the Certificate of Authentication of the Bonds.
(b) Registered Ownership. The City and the Bond Registrar, each in its discretion,
may deem and treat the Registered Owner of each Bond as the absolute owner thereof for all
purposes (except as provided in Section 13), and neither the City nor the Bond Registrar shall be
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affected by any notice to the contrary. Payment of any such Bond shall be made only as
described in Section 3(h), but such Bond may be transferred as herein provided. All such
payments made as described in Section 3(h) shall be valid and shall satisfy and discharge the
liability of the City upon such Bond to the extent of the amount or amounts so paid.
(c) DTC Acceptance/Letters of Representations. The Bonds initially shall be held
in fully immobilized form by DTC acting as depository. To induce DTC to accept the Bonds as
eligible for deposit at DTC, the City has executed and delivered to DTC a Blanket Issuer Letter of
Representations. Neither the City nor the Bond Registrar will have any responsibility or
obligation to DTC participants or the persons for whom they act as nominees (or any successor
depository) with respect to the Bonds in respect of the accuracy of any records maintained by
DTC (or any successor depository) or any DTC participant, the payment by DTC (or any successor
depository) or any DTC participant of any amount in respect of the principal of or interest on
Bonds, any notice which is permitted or required to be given to Registered Owners under this
ordinance (except such notices as shall be required to be given by the City to the Bond Registrar
or to DTC (or any successor depository)), or any consent given or other action taken by DTC (or
any successor depository) as the Registered Owner. For so long as any Bonds are held in
fully-immobilized form hereunder, DTC or its successor depository shall be deemed to be the
Registered Owner for all purposes hereunder, and all references herein to the Registered
Owners shall mean DTC (or any successor depository) or its nominee and shall not mean the
owners of any beneficial interest in such Bonds.
If any Bond shall be duly presented for payment and funds have not been duly provided
by the City on such applicable date, then interest shall continue to accrue thereafter on the
unpaid principal thereof at the rate stated on such Bond until it is paid.
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(d) Use of Depository.
(1) The Bonds shall be registered initially in the name of “Cede &
Co.”, as nominee of DTC, with one Bond maturing on each of the maturity dates for the Bonds
in a denomination corresponding to the total principal therein designated to mature on such
date. Registered ownership of such immobilized Bonds, or any portions thereof, may not
thereafter be transferred except (A) to any successor of DTC or its nominee, provided that any
such successor shall be qualified under any applicable laws to provide the service proposed to
be provided by it; (B) to any substitute depository appointed by the Finance Director pursuant
to subsection (2) below or such substitute depository’s successor; or (C) to any person as
provided in subsection (4) below.
(2) 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 Finance
Director to discontinue the system of book entry transfers through DTC or its successor (or any
substitute depository or its successor), the Finance Director may hereafter 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.
(3) In the case of any transfer pursuant to clause (A) or (B) of
subsection (1) above, the Bond Registrar shall, upon receipt of all outstanding Bonds, together
with a written request on behalf of the Finance Director, issue a single new Bond for each
maturity then outstanding, registered in the name of such successor or such substitute
depository, or their nominees, as the case may be, all as specified in such written request of the
Finance Director.
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(4) In the event that (A) DTC or its successor (or substitute depository or its successor)
resigns from its functions as depository, and no substitute depository can be obtained, or
(B) the Finance Director determines that it is in the best interest of the beneficial owners of the
Bonds that such owners be able to obtain such bonds in the form of Bond certificates, the
ownership of such Bonds may then be transferred to any person or entity as herein provided,
and shall no longer be held in fully-immobilized form. The Finance Director shall deliver a
written request to the Bond Registrar, together with a supply of definitive Bonds, to issue Bonds
as herein provided in any authorized denomination. Upon receipt by the Bond Registrar of all
then outstanding Bonds together with a written request on behalf of the Finance Director to
the Bond Registrar, new Bonds shall be issued in the appropriate denominations and registered
in the names of such persons as are requested in such written request.
(e) Registration of Transfer of Ownership or Exchange; Change in Denominations.
The transfer of any Bond may be registered and Bonds may be exchanged, but no transfer of
any such Bond shall be valid unless it is surrendered to the Bond Registrar with the assignment
form appearing on such Bond duly executed by the Registered Owner or such Registered
Owner’s duly authorized agent in a manner satisfactory to the Bond Registrar. Upon such
surrender, the Bond Registrar shall cancel the surrendered Bond and shall authenticate and
deliver, without charge to the Registered Owner or transferee therefor, a new Bond (or Bonds
at the option of the new Registered Owner) of the same date, maturity and interest rate and for
the same aggregate principal amount in any authorized denomination, naming as Registered
Owner the person or persons listed as the assignee on the assignment form appearing on the
surrendered Bond, in exchange for such surrendered and cancelled Bond. Any Bond may be
surrendered to the Bond Registrar and exchanged, without charge, for an equal aggregate
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principal amount of Bonds of the same date, maturity and interest rate, in any authorized
denomination. The Bond Registrar shall not be obligated to register the transfer or to exchange
any Bond during the 15 days preceding any interest payment or principal payment date any
such Bond is to be redeemed.
(f) Bond Registrar’s Ownership of Bonds. The Bond Registrar may become the
Registered Owner of any Bond 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 a member of, or in any other capacity with respect to, any
committee formed to protect the right of the Registered Owners of Bonds.
(g) Registration Covenant. The City covenants that, until all Bonds have been
surrendered and canceled, it will maintain a system for recording the ownership of each Bond
that complies with the provisions of Section 149 of the Code.
(h) Place and Medium of Payment. 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
calculated on the basis of a year of 360 days and twelve 30-day months. For so long as all
Bonds are in fully immobilized form, payments of principal and interest thereon shall be made
as provided in accordance with the operational arrangements of DTC referred to in the Letter of
Representations. In the event that the Bonds are no longer in fully immobilized form, interest
on the Bonds shall be paid by check or draft mailed to the Registered Owners at the addresses
for such Registered Owners appearing on the Bond Register on the fifteenth day of the month
preceding the interest payment date, or upon the written request of a Registered Owner of
more than $1,000,000 of Bonds (received by the Bond Registrar at least 15 days prior to the
applicable payment date), such payment shall be made by the Bond Registrar by wire transfer
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to the account within the United States designated by the Registered Owner. Principal of the
Bonds shall be payable upon presentation and surrender of such Bonds by the Registered
Owners at the principal office of the Bond Registrar.
Section 4. Redemption Prior to Maturity and Purchase of Bonds.
(a) Mandatory Redemption of Term Bonds and Optional Redemption, if any. The
Bonds shall be subject to optional redemption on the dates, at the prices and under the terms
set forth in the Bond Purchase Contract approved by the Designated Representative pursuant
to Section 11. The Bonds shall be subject to mandatory redemption to the extent, if any, set
forth in the Bond Purchase Contract and as approved by the Designated Representative
pursuant to Section 11.
(b) Purchase of Bonds. The City reserves the right to purchase any of the Bonds
offered to it at any time at a price deemed reasonable by the Designated Representative.
(c) Selection of Bonds for Redemption. For as long as the Bonds are held in
book-entry only form, the selection of particular Bonds within a maturity to be redeemed shall
be made in accordance with the operational arrangements then in effect at DTC. If the Bonds
are no longer held in uncertificated form, the selection of such Bonds to be redeemed and the
surrender and reissuance thereof, as applicable, shall be made as provided in the following
provisions of this subsection (c). If the City redeems at any one time fewer than all of the Bonds
having the same maturity date, the particular Bonds or portions of Bonds of such maturity to be
redeemed shall be selected by lot (or in such manner determined by the Bond Registrar) in
increments of $5,000. In the case of a Bond of a denomination greater than $5,000, the City
and the Bond Registrar shall treat each Bond as representing such number of separate Bonds
each of the denomination of $5,000 as is obtained by dividing the actual principal amount of
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such Bond by $5,000. In the event that only a portion of the principal sum of a Bond is
redeemed, upon surrender of such Bond at the principal office of the Bond Registrar there shall
be issued to the Registered Owner, without charge therefor, for the then unredeemed balance
of the principal sum thereof, at the option of the Registered Owner, a Bond or Bonds of like
maturity and interest rate in any of the denominations herein authorized.
(d) Notice of Redemption.
(1) Official Notice. For so long as the Bonds are held in uncertificated
form, notice of redemption (which notice may be conditional) shall be given in accordance with
the operational arrangements of DTC as then in effect, and neither the City nor the Bond
Registrar will provide any notice of redemption to any Beneficial Owners. Thereafter (if the
Bonds are no longer held in uncertificated form), notice of redemption shall be given in the
manner hereinafter provided. Unless waived by any owner of Bonds to be redeemed, official
notice of any such redemption (which redemption may be conditioned by the Bond Registrar on
the receipt of sufficient funds for redemption or otherwise) shall be given by the Bond Registrar
on behalf of the City by mailing a copy of an official redemption notice by first class mail at least
20 days and not more than 60 days prior to the date fixed for redemption to the Registered
Owner of the Bond or Bonds to be redeemed at the address shown on the Register or at such
other address as is furnished in writing by such Registered Owner to the Bond Registrar.
All official notices of redemption shall be dated and shall state:
(A) the redemption date,
(B) the redemption price,
(C) if fewer than all outstanding Bonds are to be redeemed, the
identification by maturity (and, in the case of partial redemption, the respective principal
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amounts) of the Bonds to be redeemed,
(D) that on the redemption date the redemption price will become
due and payable upon each such Bond or portion thereof called for redemption, and that
interest thereon shall cease to accrue from and after said date, and
(E) the place where such Bonds are to be surrendered for payment
of the redemption price, which place of payment shall be the principal office of the Bond
Registrar.
On or prior to any redemption date, the City shall deposit with the Bond Registrar an
amount of money sufficient to pay the redemption price of all the Bonds or portions of Bonds
which are to be redeemed on that date.
(2) Effect of Notice; Bonds Due. If an unconditional notice of redemption
has been given as aforesaid, the Bonds or portions of Bonds so to be redeemed shall, on the
redemption date, become due and payable at the redemption price therein specified, and from
and after such date such Bonds or portions of Bonds shall cease to bear interest. Upon
surrender of such Bonds for redemption in accordance with said notice, such Bonds shall be
paid by the Bond Registrar at the redemption price. Installments of interest due on or prior to
the redemption date shall be payable as herein provided for payment of interest. All Bonds
which have been redeemed shall be canceled by the Bond Registrar and shall not be reissued.
(3) Additional Notice. In addition to the foregoing notice, further notice
shall be given by the City as set out below, but no defect in said further notice nor any failure to
give all or any portion of such further notice shall in any manner defeat the effectiveness of a
call for redemption if notice thereof is given as above prescribed. Each further notice of
redemption given hereunder shall contain the information required above for an official notice
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of redemption plus (A) the CUSIP numbers of all Bonds being redeemed; (B) the date of issue of
the Bonds as originally issued; (C) the rate of interest borne by each Bond being redeemed;
(D) the maturity date of each Bond being redeemed; and (E) any other descriptive information
needed to identify accurately the Bonds being redeemed. Each further notice of redemption
may be sent at least 20 days before the redemption date to each party entitled to receive notice
pursuant to Section 13 and with such additional information as the City shall deem appropriate,
but such mailings shall not be a condition precedent to the redemption of such Bonds.
(4) Amendment of Notice Provisions. The foregoing notice provisions of
this Section 4, including but not limited to the information to be included in redemption notices
and the persons designated to receive notices, may be amended by additions, deletions and
changes in order to maintain compliance with duly promulgated regulations and
recommendations regarding notices of redemption of municipal securities.
Section 5. Form of Bonds. The Bonds shall be in substantially the following form:
[STATEMENT OF INSURANCE]
UNITED STATES OF AMERICA
NO. $ ___
STATE OF WASHINGTON
CITY OF RENTON
LIMITED TAX GENERAL OBLIGATION REFUNDING BOND, [SERIES 2011B]
INTEREST RATE: % MATURITY DATE: CUSIP NO.:
REGISTERED OWNER: CEDE & CO.
PRINCIPAL AMOUNT:
The City of Renton, Washington (the “City”), hereby acknowledges itself to owe and for
value received promises to pay to the Registered Owner identified above, or registered assigns,
on the Maturity Date identified above, the Principal Amount indicated above and to pay interest
thereon from ___________, 2011, or the most recent date to which interest has been paid or
duly provided for until payment of this bond at the Interest Rate set forth above, payable on
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December 1, 2011, and semiannually thereafter on the first days of each succeeding June and
December. Both principal of and interest on this bond are payable in lawful money of the
United States of America. The fiscal agency of the State of Washington has been appointed by
the City as the authenticating agent, paying agent and registrar for the bonds of this issue (the
“Bond Registrar”). For so long as the bonds of this issue are held in fully immobilized form,
payments of principal and interest thereon shall be made as provided in accordance with the
operational arrangements of The Depository Trust Company (“DTC”) referred to in the Blanket
Issuer Letter of Representations (the “Letter of Representations”) from the City to DTC.
The bonds of this issue are issued under and in accordance with the provisions of the
Constitution and applicable statutes of the State of Washington and Ordinance No. _______
duly passed by the City Council on July 25, 2011 (the “Bond Ordinance”). Capitalized terms used
in this bond have the meanings given such terms in the Bond Ordinance.
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 one of an authorized issue of bonds of like date, tenor, rate of interest and
date of maturity, except as to number and amount in the aggregate principal amount of
$__________ and is issued pursuant to the Bond Ordinance to provide a portion of the funds
necessary (a) to refund and defease certain limited tax general obligation bonds of the City, and
(b) to pay costs of issuance.
The bonds of this issue are subject to redemption as provided in the Bond Ordinance
and the Bond Purchase Contract.
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.
The bonds of this issue have not been designated by the City as “qualified tax-exempt
obligations” for investment by financial institutions under Section 265(b) of the Code.
The pledge of tax levies for payment of principal of and interest on the bonds may be
discharged prior to maturity of the bonds by making provision for the payment thereof on the
terms and 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 have happened, been done and performed and
that the issuance of this bond and the bonds of this issue does not violate any constitutional,
statutory or other limitation upon the amount of bonded indebtedness that the City may incur.
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IN WITNESS WHEREOF, the City of Renton, Washington has caused this bond to be executed by
the manual or facsimile signatures of the Mayor and the City Clerk and the seal of the City
imprinted, impressed or otherwise reproduced hereon as of this ____ day of
___________, 2011.
[SEAL]
CITY OF RENTON, WASHINGTON
By /s/ manual or facsimile
Mayor
ATTEST:
/s/ manual or facsimile
City Clerk
The Bond Registrar’s Certificate of Authentication on the Bonds shall be in substantially
the following form:
CERTIFICATE OF AUTHENTICATION
This bond is one of the bonds described in the within-mentioned Bond Ordinance and is
one of the Limited Tax General Obligation Refunding Bonds, Series 2011 of the City of Renton,
Washington, dated ____________, 2011.
WASHINGTON STATE FISCAL AGENCY, as
Bond Registrar
By
Section 6. Execution of Bonds. The Bonds shall be executed on behalf of the City
with the manual or facsimile signatures of the Mayor and City Clerk of the City and the seal of
the City shall be impressed, imprinted or otherwise reproduced thereon.
Only such Bonds as shall bear thereon a Certificate of Authentication in the form
hereinbefore recited, manually executed by the Bond Registrar, shall be valid or obligatory for
any purpose or entitled to the benefits of this ordinance. Such Certificate of Authentication
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shall be conclusive evidence that the Bonds so authenticated have been duly executed,
authenticated and delivered hereunder and are entitled to the benefits of this ordinance.
In case either of the officers who shall have executed the Bonds shall cease to be an
officer or officers of the City before the Bonds so signed shall have been authenticated or
delivered by the Bond Registrar, or issued by the City, such Bonds 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. Any Bond may be signed and attested on behalf of the City by such persons
who at the date of the actual execution of such 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. Refunding Plan; Application of Bond Proceeds.
(a) Refunding Plan. For the purpose of realizing a debt service savings and
benefiting the taxpayers of the City, the Council proposes to refund and defease the Refunded
Bonds as set forth herein. The Refunded Bonds shall include those Refunding Candidates
designated by the Designated Representative when the Bonds are sold pursuant to the Bond
Purchase Contract. Proceeds of the Bonds shall be deposited with the Escrow Agent pursuant to
the Escrow Deposit Agreement, in the form set forth as Exhibit A hereto, to be used
immediately upon receipt thereof to defease the Refunded Bonds as authorized by the 2001
Bond Ordinance and to pay costs of issuance of the Bonds.
The net proceeds deposited with the Escrow Agent shall be used to defease the
Refunded Bonds and discharge the obligations thereon by the purchase of certain Government
Obligations (which obligations so purchased, are herein called “Acquired Obligations”), bearing
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such interest and maturing as to principal and interest in such amounts and at such times
which, together with any necessary beginning cash balance, will provide for the payment of:
(1) interest on the Refunded Bonds due and payable on and prior to the
Call Date; and
(2) the redemption prices of the Refunded Bonds on the Call Date.
Such Acquired Obligations shall be purchased at a yield not greater than the yield
permitted by the Code and regulations relating to acquired obligations in connection with
refunding bond issues.
(b) Escrow Agent/Escrow Agreement. The City hereby appoints U.S. Bank
National Association, Seattle, Washington, as the Escrow Agent for the Refunded Bonds (the
“Escrow Agent”). A beginning cash balance, if any, and the Acquired Obligations shall be
deposited irrevocably with the Escrow Agent in an amount sufficient to defease the Refunded
Bonds. The proceeds of the Bonds remaining after acquisition of the Acquired Obligations and
provision for the necessary beginning cash balance shall be utilized to pay expenses of the
acquisition and safekeeping of the Acquired Obligations and expenses of the issuance of the
Bonds.
In order to carry out the purposes of this Section 7, the Designated Representative is
authorized and directed to execute and deliver to the Escrow Agent, an Escrow Deposit
Agreement, substantially in the form attached hereto as Exhibit A.
(e) Call for Redemption of Refunded Bonds. The City hereby irrevocably sets aside
sufficient funds out of the purchase of Acquired Obligations from proceeds of the Bonds to
make the payments described in Section 7(d).
The City hereby irrevocably calls the Refunded Bonds for redemption on their Call Date
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in accordance with the provisions of the 2001 Bond Ordinance authorizing the redemption and
retirement of the 2001 Bonds prior to their fixed maturities.
Said defeasance and call for redemption of the Refunded Bonds shall be irrevocable
after the issuance of the Bonds and delivery of the Acquired Obligations to the Escrow Agent.
The Escrow Agent is hereby authorized and directed to provide for the giving of notices
of the redemption of the Refunded Bonds in accordance with the applicable provisions of the
2001 Bond Ordinance. The costs of publication of such notices shall be an expense of the City.
The Escrow Agent is hereby authorized and directed to pay to the Finance Director, or,
at the direction of the Finance Director, to the paying agent for the Refunded Bonds, sums
sufficient to pay, when due, the payments specified in Section 7. All such sums shall be paid
from the moneys and Acquired Obligations deposited with the Escrow Agent, and the income
therefrom and proceeds thereof. All such sums so paid to said Finance Director shall be credited
to the Refunding Account. All moneys and Acquired Obligations deposited with the Escrow
Agent and any income therefrom shall be held, invested (but only at the direction of the
Finance Director) and applied in accordance with the provisions of this ordinance and with the
laws of the State of Washington for the benefit of the City and owners of the Refunded Bonds.
The City will take such actions as are found necessary to see that all necessary and
proper fees, compensation and expenses of the Escrow Agent for the Refunded Bonds shall be
paid when due.
Section 8. Tax Covenants. The City covenants that it will not take or permit to be
taken on its behalf any action that would adversely affect the exemption from federal income
taxation of the interest on the Bonds and will take or require to be taken such acts as may
reasonably be within its ability and as may from time to time be required under applicable law
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to continue the exemption from federal income taxation of the interest on the Bonds.
(a) Arbitrage Covenant. Without limiting the generality of the foregoing, the City
covenants that it will not take any action or fail to take any action with respect to the proceeds
of the sale of the Bonds or any other funds of the City which may be deemed to be proceeds of
the Bonds pursuant to Section 148 of the Code and the regulations promulgated thereunder
which, if such use had been reasonably expected on the dates of delivery of the Bonds to the
initial purchasers thereof, would have caused the Bonds to be treated as “arbitrage bonds”
within the meaning of such term as used in Section 148 of the Code. The City will comply with
the requirements of Section 148 of the Code and the applicable regulations thereunder
throughout the term of the Bonds.
(b) Private Person Use Limitation for Bonds. The City covenants that for as long
as the Bonds are outstanding, it will not permit:
(1) More than 10% of the Net Proceeds of the Bonds to be allocated to
any Private Person Use; and
(2) More than 10% of the principal or interest payments on the Bonds in
a Bond Year to be directly or indirectly: (A) secured by any interest in property used or to be
used for any Private Person Use or secured by payments in respect of property used or to be
used for any Private Person Use, or (B) derived from payments (whether or not made to the
City) in respect of property, or borrowed money, used or to be used for any Private Person Use.
The City further covenants that, if:
(3) More than five percent of the Net Proceeds of the Bonds are allocable
to any Private Person Use; and
(4) More than five percent of the principal or interest payments on the
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Bonds in a Bond Year are (under the terms of this ordinance or any underlying arrangement)
directly or indirectly:
(A) secured by any interest in property used or to be used for any
Private Person Use or secured by payments in respect of property used or to be used for any
Private Person Use, or
(B) derived from payments (whether or not made to the City) in
respect of property, or borrowed money, used or to be used for any Private Person Use, then,
(i) any Private Person Use of projects described in subsection (3) hereof or financed with
proceeds of the Refunded Bonds or Private Person Use payments described in subsection (4)
hereof that is in excess of the five percent limitations described in such subsections (3) or (4)
will be for a Private Person Use that is related to the state or local governmental use of the
projects funded and refunded by the proceeds of the Bonds, and (ii) any Private Person Use will
not exceed the amount of Net Proceeds of the Bonds allocable to the state or local
governmental use portion of the projects to which the Private Person Use of such portion of
projects funded or refunded by the proceeds of the Bonds relate. The City further covenants
that it will comply with any limitations on the use of the projects funded or refunded by the
proceeds of the Bonds by other than state and local governmental users that are necessary, in
the opinion of its bond counsel, to preserve the tax exemption of the interest on the Bonds.
The covenants of this section are specified solely to assure the continued exemption from
regular income taxation of the interest on the Bonds.
(c) Modification of Tax Covenants. The covenants of this section are specified
solely to assure the continued exemption from regular income taxation of the interest on the
Bonds. To that end, the provisions of this section may be modified or eliminated without any
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requirement for formal amendment thereof upon receipt of an opinion of the City’s bond
counsel that such modification or elimination will not adversely affect the tax exemption of
interest on any Bonds.
(d) No Designation under Section 265(b). The City has not designated the Bonds
as “qualified tax-exempt obligations” under Section 265(b)(3) of the Code for investment by
financial institutions.
Section 9. Bond Fund and Provision for Tax Levy Payments. The City hereby
authorizes the creation of a fund to be used for the payment of debt service on the Bonds,
designated as the “City of Renton Limited Tax General Obligation Bond Debt Service Fund,
2011” (the “Bond Fund”). No later than the date each payment of principal of or interest on the
Bonds becomes due, the City shall transmit sufficient funds, from the Bond Fund or from other
legally available sources, to the Bond Registrar for the 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 any of the Bonds are
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 all other revenues and money of the City legally available for such purposes, to
pay the principal of and interest on the Bonds 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 Bonds will be and is hereby irrevocably set aside, pledged and appropriated for
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the payment of the principal of and interest on the Bonds. 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 Bonds when due.
Section 10. Defeasance. In the event that the City, to effect the payment,
retirement or redemption of any Bond, sets aside in the Bond Fund or in another special
account, cash or noncallable Government Obligations, or any combination of cash and/or
noncallable Government Obligations, in amounts and maturities which, together with the
known earned income therefrom, are sufficient to redeem or pay and retire such Bond in
accordance with its terms and to pay when due the interest and redemption premium, if any,
thereon, and such cash and/or noncallable Government Obligations are irrevocably set aside
and pledged for such purpose, then no further payments need be made into the Bond Fund for
the payment of the principal of and interest on such Bond. The owner of a Bond so provided
for shall cease to be entitled to any lien, benefit or security of this ordinance except the right to
receive payment of principal, premium, if any, and interest from the Bond Fund or such special
account, and such Bond shall be deemed to be not outstanding under this ordinance.
The City shall give written notice of defeasance to the owners of all Bonds so provided
for within 30 days of the defeasance and to each party entitled to receive notice in accordance
with Section 13.
Section 11. Sale of Bonds.
(a) Bond Sale. The Bonds shall be sold at negotiated sale to the Underwriter
pursuant to the terms of the Bond Purchase Contract. The Underwriter has advised the Council
that market conditions are fluctuating and, as a result, the most favorable market conditions
may occur on a day other than a regular meeting date of the Council. The Council has
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determined that it would be in the best interest of the City to delegate to the Designated
Representative for a limited time the authority to approve the final interest rates, aggregate
principal amount, principal amounts of each maturity of the Bonds, selection of the Refunded
Bonds, and redemption rights. If found to be in the best interest of the City, the Designated
Representative may combine the Bonds authorized herein into a single series with the City’s
Limited Tax General Obligation Bonds, Series 2011A, authorized to be issued the aggregate
principal amount of not to exceed $18,000,000 pursuant to Ordinance No. 5613 adopted by the
Council on June 20, 2011. Any such designation shall be reflected in the Bond Purchase
Contract for the Bonds and the Limited Tax General Obligation Bonds, Series 2011A.
The Designated Representative is hereby authorized to approve the final interest rates,
aggregate principal amount, principal maturities, selection of the Refunded Bonds, whether to
combine the Bonds into a single series with the City’s Limited Tax General Obligation Bonds,
Series 2011A, and redemption rights for the Bonds in the manner provided hereafter so long as
(a) the aggregate principal amount of the Bonds does not exceed $[9,800,000], (b) the final
maturity date for the Bonds is no later than December 1, 20___, (c) the Bonds are sold (in the
aggregate) at a price not less than [95]% and not greater than [110]%, (d) the Bonds are sold for
a price that results in a minimum net present value debt service savings over the Refunded
Bonds of ____%, and (e) the true interest cost for the Bonds (in the aggregate) does not exceed
_____%.
In determining whether or not to acquire a Bond Insurance Policy and determining the
final interest rates, aggregate principal amounts, principal maturities and redemption rights, the
Designated Representative shall take into account those factors that, in his or her judgment, will
result in the lowest true interest cost on the Bonds to their maturity, including, but not limited
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to current financial market conditions and current interest rates for obligations comparable in
tenor and quality to the Bonds. Subject to the terms and conditions set forth in this Section 11,
the Designated Representative is hereby authorized to execute the Bond Purchase Contract.
The signature of one Designated Representative shall be sufficient.
Following the execution of the Bond Purchase Contract, the Designated Representative
or the Finance Director shall provide a report to the Council describing the final terms of the
Bonds approved pursuant to the authority delegated in this section. The authority granted to
the Designated Representative by this Section 11 shall expire 120 days after the effective date
of this ordinance. If a Bond Purchase Contract for the Bonds has not been executed within
120 days after the effective date of this ordinance, the authorization for the issuance of the
Bonds shall be rescinded, and the Bonds shall not be issued nor their sale approved unless such
Bonds shall have been re-authorized by ordinance of the Council. The ordinance re-authorizing
the issuance and sale of such Bonds may be in the form of a new ordinance repealing this
ordinance in whole or in part or may be in the form of an amendatory ordinance approving a
bond purchase contract or establishing terms and conditions for the authority delegated under
this Section 11.
(b) Delivery of Bonds; Documentation. Upon the passage and approval of this
ordinance, the proper officials of the City including the Designated Representative, are
authorized and directed to undertake all action necessary for the prompt execution and
delivery of the Bonds to the Underwriter and further to execute all closing certificates and
documents required to effect the closing and delivery of the Bonds in accordance with the
terms of the Bond Purchase Contract.
(c) Preliminary and Final Official Statements. The Finance Director is hereby
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authorized to ratify and to deem final the preliminary Official Statement relating to the Bonds
for the purposes of the Rule. The Finance Director is further authorized to ratify and to approve
for purposes of the Rule, on behalf of the City, the Official Statement relating to the issuance
and sale of the Bonds and the distribution of the Official Statement pursuant thereto with such
changes, if any, as may be deemed by her to be appropriate.
Section 12. Bond Insurance. The Finance Director is hereby further authorized to
solicit proposals from municipal bond insurance companies for the issuance of a Bond Insurance
Policy. In the event that the Finance Director receives multiple proposals, the Finance Director
may select the proposal having the lowest cost and resulting in an overall lower interest cost
with respect to the Bonds. The Finance Director may execute a commitment received from the
Insurer selected by the Finance Director. The Council further authorizes and directs all proper
officers, agents, attorneys and employees of the City to cooperate with the Insurer in preparing
such additional agreements, certificates, and other documentation on behalf of the City as shall
be necessary or advisable in providing for the Bond Insurance Policy.
Section 13. Undertaking to Provide Ongoing Disclosure.
(a) Contract/Undertaking. This section constitutes the City’s written undertaking
for the benefit of the owners, including Beneficial Owners, of the Bonds as required by
Section (b)(5) of the Rule.
(b) Financial Statements/Operating Data. The City agrees to provide or cause to
be provided to the Municipal Securities Rulemaking Board (“MSRB”), the following annual
financial information and operating data for the prior fiscal year (commencing in 2012 for the
fiscal year ended December 31, 2011):
1. Annual financial statements, which statements may or may not
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be audited, showing ending fund balances for the City’s general fund prepared in accordance
with the Budgeting Accounting and Reporting System prescribed by the Washington State
Auditor pursuant to RCW 43.09.200 (or any successor statute) and generally of the type
included in the official statement for the Bonds under the heading “General Fund Comparative
Statement of Revenues, Expenditures and Changes in Fund Balance”;
2. The assessed valuation of taxable property in the City;
3. Ad valorem taxes due and percentage of taxes collected;
4. Property tax levy rate per $1,000 of assessed valuation; and
5. Outstanding general obligation debt of the City.
Items 2-5 shall be required only to the extent that such information is not included in the
annual financial statements.
The information and data described above shall be provided on or before nine months
after the end of the City’s fiscal year. The City’s current fiscal year ends December 31. The City
may adjust such fiscal year by providing written notice of the change of fiscal year to the MSRB.
In lieu of providing such annual financial information and operating data, the City may
cross-reference to other documents available to the public on the MSRB’s internet website or
filed with the Commission.
If not provided as part of the annual financial information discussed above, the City shall
provide the City’s audited annual financial statement prepared in accordance with the
Budgeting Accounting and Reporting System prescribed by the Washington State Auditor
pursuant to RCW 43.09.200 (or any successor statute) when and if available to the MSRB.
(c) Listed Events. The City agrees to provide or cause to be provided to the
MSRB, in a timely manner not in excess of ten business days after the occurrence of the event,
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notice of the occurrence of any of the following events with respect to the Bonds:
1. Principal and interest payment delinquencies;
2. Non-payment related defaults, if material;
3. Unscheduled draws on debt service reserves reflecting financial
difficulties;
4. Unscheduled draws on credit enhancements reflecting financial
difficulties;
5. Substitution of credit or liquidity providers, or their failure to perform;
6. Adverse tax opinions, the issuance by the Internal Revenue Service of
proposed or final determinations of taxability, Notices of Proposed Issue
(IRS Form 5701-TEB) or other material notices or determinations with
respect to the tax status of the Bonds, or other material events affecting
the tax status of the Bonds;
7. Modifications to the rights of Bondholders, if material;
8. Optional, contingent or unscheduled Bond calls other than scheduled
sinking fund redemptions for which notice is given pursuant to Exchange
Act Release 34-23856, if material, and tender offers;
9. Defeasances;
10. Release, substitution, or sale of property securing repayment of the
Bonds, if material;
11. Rating changes;
12. Bankruptcy, insolvency, receivership or similar event of the City;
13. The consummation of a merger, consolidation, or acquisition involving
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the City or the sale of all or substantially all of the assets of the City, other
than in the ordinary course of business, the entry into a definitive
agreement to undertake such an action or the termination of a definitive
agreement relating to any such actions, other than pursuant to its terms,
if material; and
14. Appointment of a successor or additional trustee or the change of
name of a trustee, if material.
The City shall promptly determine whether the events described above are material.
(d) Format for Filings with the MSRB. All notices, financial information and
operating data required by this undertaking to be provided to the MSRB must be in an
electronic format as prescribed by the MSRB. All documents provided to the MSRB pursuant to
this undertaking must be accompanied by identifying information as prescribed by the MSRB.
(e) Notification Upon Failure to Provide Financial Data. The City agrees to
provide or cause to be provided, in a timely manner, to the MSRB notice of its failure to provide
the annual financial information described in Subsection (b) above on or prior to the date set
forth in Subsection (b) above.
(f) Termination/Modification. The City’s obligations to provide annual financial
information and notices of certain listed events shall terminate upon the legal defeasance, prior
redemption or payment in full of all of the Bonds. Any provision of this section shall be null and
void if the City (1) obtains an opinion of nationally recognized bond counsel to the effect that
the portion of the Rule that requires that provision is invalid, has been repealed retroactively or
otherwise does not apply to the Bonds and (2) notifies the MSRB of such opinion and the
cancellation of this section.
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The City may amend this section with an opinion of nationally recognized bond counsel in
accordance with the Rule. In the event of any amendment of this section, the City shall
describe such amendment in the next annual report, and shall include a narrative explanation
of the reason for the amendment and its impact on the type (or in the case of a change of
accounting principles, on the presentation) of financial information or operating data being
presented by the City. In addition, if the amendment relates to the accounting principles to be
followed in preparing financial statements, (A) notice of such change shall be given in the same
manner as for a listed event under Subsection (c), and (B) the annual report for the year in
which the change is made shall present a comparison (in narrative form and also, if feasible, in
quantitative form) between the financial statements as prepared on the basis of the new
accounting principles and those prepared on the basis of the former accounting principles.
(g) Bond Owner’s Remedies Under This Section. The right of any bondowner or
Beneficial Owner of Bonds to enforce the provisions of this section shall be limited to a right to
obtain specific enforcement of the City’s obligations under this section, and any failure by the
City to comply with the provisions of this undertaking shall not be an event of default with
respect to the Bonds.
(h) No Default. Except as otherwise disclosed in the City’s official statement
relating to the Bonds, the City is not and has not been in default in the performance of its
obligations of any prior undertaking for ongoing disclosure with respect to its obligations.
Section 14. Lost, Stolen or Destroyed Bonds. In case any Bond or Bonds shall be
lost, stolen or destroyed, the Bond Registrar may execute and deliver a new Bond or Bonds 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
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and upon his/her filing with the City evidence satisfactory to the City that such Bond was
actually lost, stolen or destroyed and of his/her ownership thereof, and upon furnishing the City
and/or the Bond Registrar with indemnity satisfactory to the City and the Bond Registrar.
Section 15. 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 Bonds. All acts taken pursuant to the authority
granted in this ordinance but prior to its effective date are hereby ratified and confirmed.
Section 16. 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 ______, 2011.
Bonnie I. Walton, City Clerk
APPROVED BY THE MAYOR this ___ day of _____, 2011.
Denis Law, Mayor
Approved as to form:
Deanna Gregory
Pacifica Law Group LLP
Bond Counsel
Date of Publication: ___________________
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EXHIBIT A
E S C R O W D E P O S I T A G R E E M E N T
CITY OF RENTON, WASHINGTON
LIMITED TAX GENERAL OBLIGATION REFUNDING BONDS, SERIES 2011[B]
THIS ESCROW AGREEMENT, dated as of _______, 2011 (herein, together with any
amendments or supplements hereto, called the “Agreement”) is entered into by and between the
City of Renton, Washington (the “City”) and U.S. Bank National Association, Seattle,
Washington, as escrow agent (herein, together with any successor in such capacity, called the
“Escrow Agent”). The notice addresses of the City and the Escrow Agent are shown on
Exhibit A attached hereto and made a part hereof.
WITNESSETH:
WHEREAS, the City heretofore has issued and there presently remain outstanding the
obligations described in Exhibit B attached hereto (the “Refunded Bonds”); and
WHEREAS, pursuant to Ordinance No. ___ passed on July 25, 2011 (the “Bond
Ordinance”), the City has determined to issue its Limited Tax General Obligation Refunding
Bonds, Series 2011 (the “Bonds”); and
WHEREAS, a portion of the proceeds of the Bonds will be used for the purpose of
providing funds to pay the costs of refunding the Refunded Bonds; and
WHEREAS, __________ has prepared a report dated _______ __, 2011 (the
“Verification Report”) relating to the source and use of funds available to accomplish the
refunding of the Refunded Bonds, the investment of such funds in Government Obligations (as
defined herein) and the adequacy of such funds and investments to provide for the payment of
the debt service due on the Refunded Bonds; and
WHEREAS, pursuant to the Bond Ordinance, the Refunded Bonds have been designated
for redemption prior to their scheduled maturity dates and, after provision is made for such
redemption, the Refunded Bonds will come due in such years, bear interest at such rates, and be
payable at such times and in such amounts as are set forth in Exhibit C attached hereto and made
a part hereof; and
WHEREAS, when Escrowed Securities have been deposited with the Escrow Agent for
the payment of all principal and interest of the Refunded Bonds when due, then the Refunded
Bonds shall be legally defeased; and
WHEREAS, the issuance, sale, and delivery of the Refunding Bonds have been duly
authorized to be issued, sold, and delivered for the purpose of obtaining the funds required to
provide for the payment of the principal of, interest on and redemption premium (if any) on the
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Refunded Bonds when due as shown on Exhibit C attached hereto;
NOW, THEREFORE, in consideration of the mutual undertakings, promises and
agreements herein contained, the sufficiency of which hereby are acknowledged, and to secure
the full and timely payment of principal of and the interest on the Refunded Bonds, the City and
the Escrow Agent mutually undertake, promise and agree for themselves and their respective
representatives and successors, as follows:
Article Definitions
Section Definitions.
Unless the context clearly indicates otherwise, the following terms shall have the
meanings assigned to them below when they are used in this Agreement:
Escrow Fund means the fund created by this Agreement to be established, held and
administered by the Escrow Agent pursuant to the provisions of this Agreement.
Escrowed Securities means the noncallable Government Obligations described in
Exhibit D attached to this Agreement, or cash or other noncallable obligations substituted
therefor pursuant to Section 4.2 of this Agreement.
Government Obligations means direct, noncallable (a) United States Treasury
Obligations, (b) United States Treasury Obligations - State and Local Government Series,
(c) non-prepayable obligations which are unconditionally guaranteed as to full and timely
payment of principal and interest by the United States of America or (d) REFCORP debt
obligations unconditionally guaranteed by the United States.
Paying Agent means The Bank of New York Mellon, as the fiscal agency of the State of
Washington, and as the paying agent for the Refunded Bonds.
Refunding Bonds means that portion of the Bonds authorized under the Bond
Ordinance for the purpose of refunding the Refunded Bonds.
Section Other Definitions.
The terms “Agreement,” “City,” “Escrow Agent,” “Bond Ordinance,”
“Verification Report,” “Refunded Bonds,” and “Bonds” when they are used in this Agreement,
shall have the meanings assigned to them in the preamble to this Agreement.
Section Interpretations.
The titles and headings of the articles and sections of this Agreement have been inserted
for convenience and reference only and are not to be considered a part hereof and shall not in any
way modify or restrict the terms hereof. This Agreement and all of the terms and provisions
hereof shall be liberally construed to effectuate the purposes set forth herein and to achieve the
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intended purpose of providing for the refunding of the Refunded Bonds in accordance with
applicable law.
Article Deposit of Funds and Escrowed Securities
Section Deposits in the Escrow Fund.
Concurrently with the sale and delivery of the Bonds, the City shall deposit, or cause to
be deposited, with the Escrow Agent, for deposit in the Escrow Fund (as defined below), the
funds (from the proceeds of the Refunding Bonds and a cash contribution by the City, if
necessary) sufficient to purchase the Escrowed Securities and pay costs of issuance described in
Exhibit D, and the Escrow Agent shall, upon the receipt thereof, acknowledge such receipt to the
City in writing.
Article Creation and Operation of Escrow Fund
Section Escrow Fund.
The Escrow Agent has created on its books a special trust fund and irrevocable
escrow account to be known as the Refunding Account (the “Escrow Fund”). The Escrow Agent
hereby agrees that upon receipt thereof it will deposit to the credit of the Escrow Fund the funds
and the Escrowed Securities described in Exhibit D attached hereto. Such deposit, all proceeds
therefrom, and all cash balances from time to time on deposit therein (a) shall be the property of
the Escrow Fund, (b) shall be applied only in strict conformity with the terms and conditions of
this Agreement, and (c) are hereby irrevocably pledged to the payment of the principal of and
interest on the Refunded Bonds as set forth in Ordinance No. 4922 adopted by the City Council
of the City on October 22, 2001 (the “2001 Bond Ordinance”), which payment shall be made by
timely transfers of such amounts at such times as are provided for in Section 3.2 hereof. When
the final transfers have been made for the payment of such principal of and interest on the
Refunded Bonds, any balance then remaining in the Escrow Fund shall be transferred to the City,
and the Escrow Agent shall thereupon be discharged from any further duties hereunder.
Section Payment of Principal and Interest.
The Escrow Agent is hereby irrevocably instructed to transfer to the Paying Agent from
the cash balances from time to time on deposit in the Escrow Fund, the amounts required to pay
the principal of the Refunded Bonds at their respective redemption dates and interest thereon to
such redemption dates in the amounts and at the times shown in Exhibit C attached hereto.
Section Sufficiency of Escrow Fund.
The City represents that, based upon the information provided in the Verification
Report, the successive receipts of the principal of and interest on the Escrowed Securities will
assure that the cash balance on deposit from time to time in the Escrow Fund will be at all times
sufficient to provide moneys for transfer to the Paying Agent at the times and in the amounts
required to pay the interest on the Refunded Bonds as such interest comes due and the principal
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of the Refunded Bonds as the Refunded Bonds are paid on an optional redemption date prior to
maturity, all as more fully set forth in Exhibit E attached hereto and as required for the legal
defeasance of the Refunded Bonds under the terms of the 2001 Bond Ordinance. If, for any
reason, at any time, the cash balances on deposit or scheduled to be on deposit in the Escrow
Fund shall be insufficient to transfer the amounts required by the Paying Agent to make the
payments set forth in Section 3.2. hereof, the City shall timely deposit in the Escrow Fund, from
any funds that are lawfully available therefor, additional funds in the amounts required to make
such payments. Notice of any such insufficiency shall be given promptly as hereinafter
provided, but the Escrow Agent shall not in any manner be responsible for any insufficiency of
funds in the Escrow Fund or the City’s failure to make additional deposits thereto.
Section Trust Fund.
The Escrow Agent or its affiliate, shall hold at all times the Escrow Fund, the Escrowed
Securities and all other assets of the Escrow Fund, wholly segregated from all other funds and
securities on deposit with the Escrow Agent; it shall never allow the Escrowed Securities or any
other assets of the Escrow Fund to be commingled with any other funds or securities of the
Escrow Agent; and it shall hold and dispose of the assets of the Escrow Fund only as set forth
herein. The Escrowed Securities and other assets of the Escrow Fund shall always be maintained
by the Escrow Agent as trust funds for the benefit of the owners of the Refunded Bonds; and a
special account thereof shall at all times be maintained on the books of the Escrow Agent. The
owners of the Refunded Bonds shall be entitled to the same preferred claim and first lien upon
the Escrowed Securities, the proceeds thereof, and all other assets of the Escrow Fund to which
they are entitled as owners of the Refunded Bonds as set forth in the 2001 Bond Ordinance. The
amounts received by the Escrow Agent under this Agreement shall not be considered as a
banking deposit by the City, and the Escrow Agent shall have no right to title with respect thereto
except as a trustee and Escrow Agent under the terms of this Agreement. The amounts received
by the Escrow Agent under this Agreement shall not be subject to warrants, drafts or checks
drawn by the City or, except to the extent expressly herein provided, by the Paying Agent.
Article Limitation on Investments
Section Investments.
Except for the initial investment in the Escrowed Securities the Escrow Agent shall not
have any power or duty to invest or reinvest any money held hereunder, or to make substitutions
of the Escrowed Securities, or to sell, transfer, or otherwise dispose of the Escrowed Securities.
Section Substitution of Securities.
[Reserved]
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Article Application of Cash Balances
Section In General.
Except as provided in Section 2.1, 3.2 and 4.2 hereof, no withdrawals, transfers
orreinvestment shall be made of cash balances in the Escrow Fund. Cash balances shall be held
bythe Escrow Agent in United States currency as cash balances as shown on the books and
recordsof the Escrow Agent and, except as provided herein, shall not be reinvested
by the EscrowAgent; provided, however, a conversion to currency shall not be required (i)
for so long as theEscrow Agent’s internal rate of return does not exceed 20%, or (ii) if the
Escrow Agent’s internalrate of return exceeds 20%, the Escrow Agent receives a letter of
instructions, accompanied bythe opinion of nationally recognized bond counsel, approving the
assumed reinvestment of suchproceeds at such higher yield.
Article Redemption of Refunded Bonds
Section Call for Redemption.
The City hereby irrevocably calls the Refunded Bonds for redemption on their earliest
redemption dates, as shown in the Verification Report and on Appendix A attached hereto.
Section Notice of Redemption/Notice of Defeasance.
The Escrow Agent agrees to give a notice of defeasance and a notice of the redemption
of the Refunded Bonds pursuant to the terms of the Refunded Bonds and in substantially the
forms attached hereto as Appendices A and B attached hereto and as described on said
Appendices A and B to the Paying Agent for distribution as described therein. The notice of
defeasance shall be given immediately following the execution of this Agreement, and the notice
of redemption shall be given in accordance with the ordinance authorizing the Refunded Bonds.
The Escrow Agent hereby certifies that provision satisfactory and acceptable to the Escrow
Agent has been made for the giving of notice of redemption of the Refunded Bonds.
Article Records and Reports
Section Records.
The Escrow Agent will keep books of record and account in which complete and
accurate entries shall be made of all transactions relating to the receipts, disbursements,
allocations and application of the money and Escrowed Securities deposited to the Escrow Fund
and all proceeds thereof, and such books shall be available for inspection during business hours
and after reasonable notice by the parties hereto and by the owners of the Refunded Bonds.
Section Reports.
While this Agreement remains in effect, the Escrow Agent monthly shall prepare and
send to the City a written report summarizing all transactions relating to the Escrow Fund during
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the preceding financial month, including, without limitation, credits to the Escrow Fund as a
result of interest payments on or maturities of the Escrowed Securities and transfers from the
Escrow Fund for payments on the Refunded Bonds or otherwise, together with a detailed
statement of all Escrowed Securities and the cash balance on deposit in the Escrow Fund as of
the end of such period.
Article Concerning the Paying Agents and Escrow Agent
Section Representations.
The Escrow Agent hereby represents that it has all necessary power and authority to
enter into this Agreement and undertake the obligations and responsibilities imposed upon it
herein, and that it will carry out all of its obligations hereunder.
Section Limitation on Liability.
The liability of the Escrow Agent to transfer funds for the payment of the principal of
and interest on the Refunded Bonds shall be limited to the proceeds of the Escrowed Securities
and the cash balances from time to time on deposit in the Escrow Fund. Notwithstanding any
provision contained herein to the contrary, the Escrow Agent shall have no liability whatsoever
for the insufficiency of funds from time to time in the Escrow Fund or any failure of the obligors
of the Escrowed Securities to make timely payment thereon, except for the obligation to notify
the City promptly of any such occurrence.
The recitals herein and in the proceedings authorizing the Refunding Bonds shall be
taken as the statements of the City and shall not be considered as made by, or imposing any
obligation or liability upon, the Escrow Agent.
The Escrow Agent is not a party to the proceedings authorizing the Refunding Bonds or
the Refunded Bonds and is not responsible for nor bound by any of the provisions thereof. In its
capacity as Escrow Agent, it is agreed that the Escrow Agent need look only to the terms and
provisions of this Agreement.
The Escrow Agent makes no representations as to the value, conditions or sufficiency of
the Escrow Fund, or any part thereof, or as to the title of the City thereto, or as to the security
afforded thereby or hereby, and the Escrow Agent shall not incur any liability or responsibility in
respect to any of such matters.
It is the intention of the parties hereto that the Escrow Agent shall never be required to
use or advance its own funds or otherwise incur personal financial liability in the performance of
any of its duties or the exercise of any of its rights and powers hereunder.
The Escrow Agent shall not be liable for any action taken or neglected to be taken by it
in good faith in any exercise of reasonable care and believed by it to be within the discretion or
power conferred upon it by this Agreement, nor shall the Escrow Agent be responsible for the
consequences of any error of judgment; and the Escrow Agent shall not be answerable except for
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its own neglect or willful misconduct, nor for any loss unless the same shall have been through
its negligence or bad faith.
Unless it is specifically otherwise provided herein, the Escrow Agent has no duty
to determine or inquire into the happening or occurrence of any event or contingency or the
performance or failure of performance of the City with respect to arrangements or contracts with
others, with the Escrow Agent’s sole duty hereunder being to safeguard the Escrow Fund, to
dispose of and deliver the same in accordance with this Agreement. If, however, the Escrow
Agent is called upon by the terms of this Agreement to determine the occurrence of any event or
contingency, the Escrow Agent shall be obligated, in making such determination, only to exercise
reasonable care and diligence, and in event of error in making such determination the Escrow
Agent shall be liable only for its own willful misconduct or its negligence. In determining the
occurrence of any such event or contingency the Escrow Agent may request from the City or any
other person such reasonable additional evidence as the Escrow Agent in its discretion may deem
necessary to determine any fact relating to the occurrence of such event or contingency, and in
this connection may make inquiries of, and consult with, among others, the City at any time.
Section Compensation.
The City shall pay to the Escrow Agent fees for performing the services hereunder and
for the expenses incurred or to be incurred by the Escrow Agent in the administration of this
Agreement pursuant to the terms of the Fee Schedule attached hereto as Appendix B. The
Escrow Agent hereby agrees that in no event shall it ever assert any claim or lien against the
Escrow Fund for any fees for its services, whether regular or extraordinary, as Escrow Agent, or
in any other capacity, or for reimbursement for any of its expenses as Escrow Agent or in any
other capacity.
Section Successor Escrow Agents.
Any corporation, association or other entity into which the Escrow Agent may be
converted or merged, or with which it may be consolidated, or to which it may sell or otherwise
transfer all or substantially all of its corporate trust assets and business or any corporation,
association or other entity resulting from any such conversion, sale, merger, consolidation or
other transfer to which it is a party, ipso facto, shall be and become successor escrow agent
hereunder, vested with all other matters as was its predecessor, without the execution or filing of
any instrument or any further act on the part of the parties hereto, notwithstanding anything
herein to the contrary.
If at any time the Escrow Agent or its legal successor or successors should become
unable, through operation or law or otherwise, to act as escrow agent hereunder, or if its property
and affairs shall be taken under the control of any state or federal court or administrative body
because of insolvency or bankruptcy or for any other reason, a vacancy shall forthwith exist in
the office of Escrow Agent hereunder. In such event, the City, by appropriate action, promptly
shall appoint an Escrow Agent to fill such vacancy. If no successor Escrow Agent shall have
been appointed by the City within 60 days, a successor may be appointed by the owners of a
majority in principal amount of the Refunded Bonds then outstanding by an instrument or
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instruments in writing filed with the City, signed by such owners or by their duly authorized
attorneys-in-fact. If, in a proper case, no appointment of a successor Escrow Agent shall be
made pursuant to the foregoing provisions of this section within three months after a vacancy
shall have occurred, the owner of any Refunded Bond may apply to any court of competent
jurisdiction to appoint a successor Escrow Agent. Such court may thereupon, after such notice,
if any, as it may deem proper, prescribe and appoint a successor Escrow Agent.
Any successor Escrow Agent shall be a corporation organized or doing business under
the laws of the United States or the State of Washington, authorized under such laws to exercise
corporate trust powers, having a combined capital and surplus of at least $100,000,000 and
subject to the supervision or examination by federal or state authority.
Any successor Escrow Agent shall execute, acknowledge and deliver to the City and the
Escrow Agent an instrument accepting such appointment hereunder, and the Escrow Agent shall
execute and deliver an instrument transferring to such successor Escrow Agent, subject to the
terms of this Agreement, all the rights, powers and trusts of the Escrow Agent hereunder. Upon
the request of any such successor Escrow Agent, the City shall execute any and all instruments in
writing for more fully and certainly vesting in and confirming to such successor Escrow Agent
all such rights, powers and duties.
The obligations assumed by the Escrow Agent pursuant to this Agreement may be
transferred by the Escrow Agent to a successor Escrow Agent if (a) the requirements of this
Section 8.4 and the 2001 Bond Ordinance are satisfied; (b) the successor Escrow Agent has
assumed all the obligations of the Escrow Agent under this Agreement; and (c) all of the
Escrowed Securities and money held by the Escrow Agent pursuant to this Agreement have been
duly transferred to such successor Escrow Agent.
Article Miscellaneous
Section Notice.
Any notice, authorization, request, or demand required or permitted to be given
hereunder shall be in writing and shall be deemed to have been duly given when mailed by
registered or certified mail, postage prepaid addressed to the City or the Escrow Agent at the
address shown on Exhibit A attached hereto. The United States Post Office registered or
certified mail receipt showing delivery of the aforesaid shall be conclusive evidence of the date
and fact of delivery. Any party hereto may change the address to which notices are to be
delivered by giving to the other parties not less than ten days prior notice thereof.
Section Termination of Responsibilities.
Upon the taking of all the actions as described herein by the Escrow Agent, the Escrow
Agent shall have no further obligations or responsibilities hereunder to the City, the owners of
the Refunded Bonds or to any other person or persons in connection with this Agreement.
Section Binding Agreement.
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This Agreement shall be binding upon the City and the Escrow Agent and their
respective successors and legal representatives, and shall inure solely to the benefit of the owners
of the Refunded Bonds, the City, the Escrow Agent and their respective successors and legal
representatives.
Section Severability.
In case any one or more of the provisions contained in this Agreement shall for any
reason be held to be invalid, illegal or unenforceable in any respect, such invalidity, illegality or
unenforceability shall not affect any other provisions of this Agreement, but this Agreement shall
be construed as if such invalid or illegal or unenforceable provision had never been contained
herein.
Section Washington Law Governs.
This Agreement shall be governed exclusively by the provisions hereof and by the
applicable laws of the State of Washington.
Section Time of the Essence.
Time shall be of the essence in the performance of obligations from time to time
imposed upon the Escrow Agent by this Agreement.
Section Notice to Moody’s.
In the event that this Agreement or any provision thereof is severed, amended or
revoked, the City shall provide written notice of such severance, amendment or revocation to
Moody’s Investors Service at 7 World Trade Center at 250 Greenwich Street, New York,
New York, 10007, Attention: Public Finance Rating Desk/ Refunded Bonds.
Section 9.8. Amendments.
This Agreement shall not be amended except to cure any ambiguity or formal defect or
omission in this Agreement. No amendment shall be effective unless the same shall be in writing
and signed by the parties thereto. No such amendment shall adversely affect the rights of the
holders of the Refunded Bonds. No such amendment shall be made without first receiving
written confirmation from the rating agencies (if any) which have rated the Refunded Bonds that
such administrative changes will not result in a withdrawal or reduction of its rating then
assigned to the Refunded Bonds. If this Agreement is amended, prior written notice and copies
of the proposed changes shall be given to the rating agencies which have rated the Refunded
Bonds.
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EXECUTED as of the date first written above.
CITY OF RENTON, WASHINGTON
[Designated City Representative]
U.S. BANK NATIONAL ASSOCIATION
Name:____________________________
_
Title:_____________________________
Exhibit A — Addresses of the City and the Escrow Agent
Exhibit B — Description of the Refunded Bonds
Exhibit C — Schedule of Debt Service on Refunded Bonds
Exhibit D — Description of Beginning Cash Deposit (if any) and
Escrowed Securities
Exhibit E — Escrow Fund Cash Flow
Appendix A — Notice of Redemption for the 2001 Bonds
Appendix B — Notice of Defeasance for the 2001 Bonds
Appendix C — Fee Schedule
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EXHIBIT A
Addresses of the City and Escrow Agent
The City: City of Renton, Washington
1055 S. Grady Way
Renton, Washington 98057
Attention: Finance and Information Services Administrator
Escrow Agent: U.S. Bank National Association
Corporate Trust Services PD-WA-T7CT
1420 Fifth Avenue, 7th Floor
Seattle, WA 98101
Attention: Carolyn Morrison, Vice President
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EXHIBIT B
Description of the Refunded Bonds
City of Renton, Washington
Limited Tax General Obligation and Refunding Bonds, 2001
Maturity Dates
(December 1)
Principal
Interest Rates
2012 $ 1,455,000 5.25%
2013 1,530,000 5.25
2014 1,610,000 5.25
2015 1,695,000 5.25
2016 1,785,000 5.25
2017 1,875,000 5.25
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EXHIBIT C
Schedule of Debt Service on the Refunded Bonds
Date Interest
Principal/
Redemption Price Total
$___$_____$____
$___$_____$____
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EXHIBIT D
Escrow Deposit
I. Cash: $____
II. Other Obligations:
Description Maturity Date Principal Amount Interest Rate Total Cost
III. Costs of Issuance (1):
Escrow Agent Fee (U.S. Bank) $
Bond Counsel Fee (Pacifica Law Group LLP)
Rating Agency (_________)
Printing/mailing the POS Fee
Contingency
TOTAL: $
(1) Net of Purchaser’s fee of $___.00.
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EXHIBIT E
Escrow Fund Cash Flow
Date
Escrow
Requirement
Net Escrow
Receipts
Excess
Receipts
Cash
Balance
$ _____$ _____$ _____
$ ____________________
$ ____ $_____
$ _____
$ _____
APPENDIX A-1
NOTICE OF REDEMPTION*
City of Renton, Washington
Limited Tax General Obligation and Refunding Bonds, 2001
NOTICE IS HEREBY GIVEN that the City of Renton, Washington (the “City”)
has called for redemption on December 1, 2011, its outstanding Limited Tax General Obligation
and Refunding Bonds, 2001 (the “Bonds”).
The Bonds to be refunded will be redeemed at a price of one hundred percent (100%) of
their principal amount, plus interest accrued to December 1, 2011. The redemption price of the
Bonds is payable on presentation and surrender of the Bonds at the office of:
The Bank of New York Mellon
Worldwide Series Processing
2001 Bryan Street, 9th Floor
Dallas, Texas 75021
-or-
Wells Fargo Bank National
Association
Corporate Trust Department
14th Floor - M/S 257
999 Third Avenue
Seattle, Washington 98104
Interest on the Bonds to be refunded or portions thereof which are redeemed shall cease
to accrue on December 1, 2011.
The following Bonds are being redeemed:
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Maturity Dates
(December 1)
Principal
Amounts
Interest
Rates
CUSIP
Numbers
2012 $ 1,455,000 5.25%
2013 1,530,000 5.25
2014 1,610,000 5.25
2015 1,695,000 5.25
2016 1,785,000 5.25
2017 1,875,000 5.25
By Order of the City of Renton, Washington
The Bank of New York Mellon, as Paying Agent
Dated: .
Withholding of 28% of gross redemption proceeds of any payment made within
the United States may be required by the Jobs and Growth Tax Relief Reconciliation Act of 2003
(the “Act”) unless the Paying Agent has the correct taxpayer identification number (social
security or employer identification number) or exemption certificate of the payee. Please furnish
a properly completed Form W-9 or exemption certificate or equivalent when presenting your
Bonds.
APPENDIX B
Notice of Defeasance*
City of Renton, Washington
Limited Tax General Obligation and Refunding Bonds, 2001
NOTICE IS HEREBY GIVEN to the owners of that portion of the above-captioned
bonds with respect to which, pursuant to an Escrow Deposit Agreement dated _________ __,
2011, by and between the City of Renton, Washington (the “City”) and U.S. Bank National
Association, Seattle, Washington (the “Escrow Agent”), the City has deposited into an escrow
account, held by the Escrow Agent, cash and non-callable direct obligations of the United States
of America, the principal of and interest on which, when due, will provide money sufficient to
pay each year, to and including the respective maturity or redemption dates of such bonds so
provided for, the principal thereof and interest thereon (the “Defeased Bonds”). The Defeased
Bonds will be called on December 1, 2011, at a price of 100% plus accrued interest. Such
Defeased Bonds are therefore deemed to be no longer outstanding pursuant to the provisions of
Ordinance No. 4922 of the City, authorizing the issuance of the Defeased Bonds, but will be paid
by application of the assets of such escrow account.
The Defeased Bonds are described as follows:
Limited Tax General Obligation and Refunding Bonds, 2001 (Dated November 1, 2001)
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Maturity Dates
(December 1)
Principal
Interest Rates
CUSIP
Numbers
2012 $ 1,455,000 5.25%
2013 1,530,000 5.25
2014 1,610,000 5.25
2015 1,695,000 5.25
2016 1,785,000 5.25
2017 1,875,000 5.25
Information for Individual Registered Owner
The addressee of this notice is the registered owner of Bond Certificate No. _____ of the
Defeased Bonds described above, which certificate is in the principal amount of $_________.
All of which has been defeased as described above.
APPENDIX C
Fee Schedule
CERTIFICATE
I, the undersigned, City Clerk of the City Council of the City of Renton, Washington (the
“City”), DO HEREBY CERTIFY:
1. The attached copy of Ordinance No. ____ (the “Ordinance”) is a full, true and
correct copy of an ordinance duly passed at a regular meeting of the City Council of the City
held at the regular meeting place thereof on July 25, 2011, as that ordinance appears on the
minute book of the City; and the Ordinance will be in full force and effect after publication in
the City’s official newspaper as provided by law; and
2. A quorum of the members of the City Council was present throughout the
meeting and a majority of those members present voted in the proper manner for the passage
of the Ordinance.
IN WITNESS WHEREOF, I have hereunto set my hand this 25th day of July, 2011.
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7j. ‐ Finance and Information Services Department requests approval of
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CITY OF RENTON COUNCIL AGENDA BILL
Subject/Title:
Grant MOU & Amendment #1 with Washington
Traffic Safety Commision (WTSC) for Target Zero
Teams North and South King County Task Forces
Meeting:
Regular Council - 11 Jul 2011
Exhibits:
MOU Washington Traffic Safety Commission
Target Zero Teams North and South King County
Target Zero Task Forces
Amendment #1 to MOU WTSC
Submitting Data: Dept/Div/Board:
Police
Staff Contact:
Melissa Day, Kent Curry
Recommended Action:
Council Concur
Fiscal Impact:
Expenditure Required: $ $22,285.50 Transfer Amendment: $
Amount Budgeted: $ Revenue Generated: $$22,285.50
Total Project Budget: $ City Share Total Project: $
SUMMARY OF ACTION:
To reduce the number of people killed or seriously injured by impaired drivers in King County the
Washington Traffic Safety Commission grants funding to the City of Renton Police Department. Officers
will be deployed in coordination with other law enforcement agencies to generate the highest number
of deterrence possible for DUI. The WTSC has amended their initial grant funding amount to
$22,285.50.
STAFF RECOMMENDATION:
Approve grant MOU and Amendment #1 with the Washington Traffic Safety Commission for Target Zero
Teams North and South King County Target Zero Task Forces and authorize the Mayor and City Clerk to
sign.
7k. ‐ Police Department requests approval to accept $22,285.50 in grant
funds from the Washington State Traffic Safety Commission and to sign Page 193 of 355
7k. ‐ Police Department requests approval to accept $22,285.50 in grant
funds from the Washington State Traffic Safety Commission and to sign Page 194 of 355
7k. ‐ Police Department requests approval to accept $22,285.50 in grant
funds from the Washington State Traffic Safety Commission and to sign Page 195 of 355
7k. ‐ Police Department requests approval to accept $22,285.50 in grant
funds from the Washington State Traffic Safety Commission and to sign Page 196 of 355
7k. ‐ Police Department requests approval to accept $22,285.50 in grant
funds from the Washington State Traffic Safety Commission and to sign Page 197 of 355
7k. ‐ Police Department requests approval to accept $22,285.50 in grant
funds from the Washington State Traffic Safety Commission and to sign Page 198 of 355
CITY OF RENTON COUNCIL AGENDA BILL
Subject/Title:
2012-2017 Six-Year Transportation Improvement
Program (TIP) and Arterial Street Plan update
Meeting:
Regular Council - 11 Jul 2011
Exhibits:
Draft 2012-2017 TIP including Project Map (Exhibit A) and
Map Index (Exhibit B) within the document
Arterial Street Plan (Exhibit C)
Resolution
Submitting Data: Dept/Div/Board:
Public Works
Staff Contact:
Juliana Fries, Program Development
Coordinator, ext. 7232
Recommended Action:
Refer to Transportation Committee and set Public Hearing
date on August 1, 2011
Fiscal Impact:
Expenditure Required: $ N/A Transfer Amendment: $
Amount Budgeted: $ Revenue Generated: $
Total Project Budget: $ City Share Total Project: $
SUMMARY OF ACTION:
The City is required by law to annually review the Six-Year Transportation Improvement Program (TIP)
and adopt the update by resolution. In conjunction with this, the Arterial Street Plan is also updated.
STAFF RECOMMENDATION:
1) Approve the annual updates to the Six-Year Transportation Improvement Program (TIP 2012-2017);
2) Approve the 2011 Arterial Street Plan; 3) Set August 1, 2011, as the public hearing on the 2012-2017
TIP; 4) Present the resolution regarding this matter for reading and adoption.
7l. ‐ Transportation Systems Division submits the annual update of the
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7l. ‐ Transportation Systems Division submits the annual update of the
Six‐Year Transportation Improvement Program (TIP) and Arterial Street Page 200 of 355
7l. ‐ Transportation Systems Division submits the annual update of the
Six‐Year Transportation Improvement Program (TIP) and Arterial Street Page 201 of 355
7l. ‐ Transportation Systems Division submits the annual update of the
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7l. ‐ Transportation Systems Division submits the annual update of the
Six‐Year Transportation Improvement Program (TIP) and Arterial Street Page 203 of 355
7l. ‐ Transportation Systems Division submits the annual update of the
Six‐Year Transportation Improvement Program (TIP) and Arterial Street Page 204 of 355
7l. ‐ Transportation Systems Division submits the annual update of the
Six‐Year Transportation Improvement Program (TIP) and Arterial Street Page 205 of 355
7l. ‐ Transportation Systems Division submits the annual update of the
Six‐Year Transportation Improvement Program (TIP) and Arterial Street Page 206 of 355
7l. ‐ Transportation Systems Division submits the annual update of the
Six‐Year Transportation Improvement Program (TIP) and Arterial Street Page 207 of 355
7l. ‐ Transportation Systems Division submits the annual update of the
Six‐Year Transportation Improvement Program (TIP) and Arterial Street Page 208 of 355
7l. ‐ Transportation Systems Division submits the annual update of the
Six‐Year Transportation Improvement Program (TIP) and Arterial Street Page 209 of 355
7l. ‐ Transportation Systems Division submits the annual update of the
Six‐Year Transportation Improvement Program (TIP) and Arterial Street Page 210 of 355
7l. ‐ Transportation Systems Division submits the annual update of the
Six‐Year Transportation Improvement Program (TIP) and Arterial Street Page 211 of 355
7l. ‐ Transportation Systems Division submits the annual update of the
Six‐Year Transportation Improvement Program (TIP) and Arterial Street Page 212 of 355
7l. ‐ Transportation Systems Division submits the annual update of the
Six‐Year Transportation Improvement Program (TIP) and Arterial Street Page 213 of 355
7l. ‐ Transportation Systems Division submits the annual update of the
Six‐Year Transportation Improvement Program (TIP) and Arterial Street Page 214 of 355
7l. ‐ Transportation Systems Division submits the annual update of the
Six‐Year Transportation Improvement Program (TIP) and Arterial Street Page 215 of 355
7l. ‐ Transportation Systems Division submits the annual update of the
Six‐Year Transportation Improvement Program (TIP) and Arterial Street Page 216 of 355
7l. ‐ Transportation Systems Division submits the annual update of the
Six‐Year Transportation Improvement Program (TIP) and Arterial Street Page 217 of 355
7l. ‐ Transportation Systems Division submits the annual update of the
Six‐Year Transportation Improvement Program (TIP) and Arterial Street Page 218 of 355
7l. ‐ Transportation Systems Division submits the annual update of the
Six‐Year Transportation Improvement Program (TIP) and Arterial Street Page 219 of 355
7l. ‐ Transportation Systems Division submits the annual update of the
Six‐Year Transportation Improvement Program (TIP) and Arterial Street Page 220 of 355
7l. ‐ Transportation Systems Division submits the annual update of the
Six‐Year Transportation Improvement Program (TIP) and Arterial Street Page 221 of 355
7l. ‐ Transportation Systems Division submits the annual update of the
Six‐Year Transportation Improvement Program (TIP) and Arterial Street Page 222 of 355
7l. ‐ Transportation Systems Division submits the annual update of the
Six‐Year Transportation Improvement Program (TIP) and Arterial Street Page 223 of 355
7l. ‐ Transportation Systems Division submits the annual update of the
Six‐Year Transportation Improvement Program (TIP) and Arterial Street Page 224 of 355
7l. ‐ Transportation Systems Division submits the annual update of the
Six‐Year Transportation Improvement Program (TIP) and Arterial Street Page 225 of 355
7l. ‐ Transportation Systems Division submits the annual update of the
Six‐Year Transportation Improvement Program (TIP) and Arterial Street Page 226 of 355
7l. ‐ Transportation Systems Division submits the annual update of the
Six‐Year Transportation Improvement Program (TIP) and Arterial Street Page 227 of 355
7l. ‐ Transportation Systems Division submits the annual update of the
Six‐Year Transportation Improvement Program (TIP) and Arterial Street Page 228 of 355
7l. ‐ Transportation Systems Division submits the annual update of the
Six‐Year Transportation Improvement Program (TIP) and Arterial Street Page 229 of 355
7l. ‐ Transportation Systems Division submits the annual update of the
Six‐Year Transportation Improvement Program (TIP) and Arterial Street Page 230 of 355
7l. ‐ Transportation Systems Division submits the annual update of the
Six‐Year Transportation Improvement Program (TIP) and Arterial Street Page 231 of 355
7l. ‐ Transportation Systems Division submits the annual update of the
Six‐Year Transportation Improvement Program (TIP) and Arterial Street Page 232 of 355
7l. ‐ Transportation Systems Division submits the annual update of the
Six‐Year Transportation Improvement Program (TIP) and Arterial Street Page 233 of 355
7l. ‐ Transportation Systems Division submits the annual update of the
Six‐Year Transportation Improvement Program (TIP) and Arterial Street Page 234 of 355
7l. ‐ Transportation Systems Division submits the annual update of the
Six‐Year Transportation Improvement Program (TIP) and Arterial Street Page 235 of 355
7l. ‐ Transportation Systems Division submits the annual update of the
Six‐Year Transportation Improvement Program (TIP) and Arterial Street Page 236 of 355
7l. ‐ Transportation Systems Division submits the annual update of the
Six‐Year Transportation Improvement Program (TIP) and Arterial Street Page 237 of 355
7l. ‐ Transportation Systems Division submits the annual update of the
Six‐Year Transportation Improvement Program (TIP) and Arterial Street Page 238 of 355
7l. ‐ Transportation Systems Division submits the annual update of the
Six‐Year Transportation Improvement Program (TIP) and Arterial Street Page 239 of 355
7l. ‐ Transportation Systems Division submits the annual update of the
Six‐Year Transportation Improvement Program (TIP) and Arterial Street Page 240 of 355
7l. ‐ Transportation Systems Division submits the annual update of the
Six‐Year Transportation Improvement Program (TIP) and Arterial Street Page 241 of 355
7l. ‐ Transportation Systems Division submits the annual update of the
Six‐Year Transportation Improvement Program (TIP) and Arterial Street Page 242 of 355
7l. ‐ Transportation Systems Division submits the annual update of the
Six‐Year Transportation Improvement Program (TIP) and Arterial Street Page 243 of 355
7l. ‐ Transportation Systems Division submits the annual update of the
Six‐Year Transportation Improvement Program (TIP) and Arterial Street Page 244 of 355
7l. ‐ Transportation Systems Division submits the annual update of the
Six‐Year Transportation Improvement Program (TIP) and Arterial Street Page 245 of 355
7l. ‐ Transportation Systems Division submits the annual update of the
Six‐Year Transportation Improvement Program (TIP) and Arterial Street Page 246 of 355
7l. ‐ Transportation Systems Division submits the annual update of the
Six‐Year Transportation Improvement Program (TIP) and Arterial Street Page 247 of 355
7l. ‐ Transportation Systems Division submits the annual update of the
Six‐Year Transportation Improvement Program (TIP) and Arterial Street Page 248 of 355
7l. ‐ Transportation Systems Division submits the annual update of the
Six‐Year Transportation Improvement Program (TIP) and Arterial Street Page 249 of 355
7l. ‐ Transportation Systems Division submits the annual update of the
Six‐Year Transportation Improvement Program (TIP) and Arterial Street Page 250 of 355
7l. ‐ Transportation Systems Division submits the annual update of the
Six‐Year Transportation Improvement Program (TIP) and Arterial Street Page 251 of 355
7l. ‐ Transportation Systems Division submits the annual update of the
Six‐Year Transportation Improvement Program (TIP) and Arterial Street Page 252 of 355
7l. ‐ Transportation Systems Division submits the annual update of the
Six‐Year Transportation Improvement Program (TIP) and Arterial Street Page 253 of 355
7l. ‐ Transportation Systems Division submits the annual update of the
Six‐Year Transportation Improvement Program (TIP) and Arterial Street Page 254 of 355
7l. ‐ Transportation Systems Division submits the annual update of the
Six‐Year Transportation Improvement Program (TIP) and Arterial Street Page 255 of 355
7l. ‐ Transportation Systems Division submits the annual update of the
Six‐Year Transportation Improvement Program (TIP) and Arterial Street Page 256 of 355
7l. ‐ Transportation Systems Division submits the annual update of the
Six‐Year Transportation Improvement Program (TIP) and Arterial Street Page 257 of 355
7l. ‐ Transportation Systems Division submits the annual update of the
Six‐Year Transportation Improvement Program (TIP) and Arterial Street Page 258 of 355
7l. ‐ Transportation Systems Division submits the annual update of the
Six‐Year Transportation Improvement Program (TIP) and Arterial Street Page 259 of 355
7l. ‐ Transportation Systems Division submits the annual update of the
Six‐Year Transportation Improvement Program (TIP) and Arterial Street Page 260 of 355
7l. ‐ Transportation Systems Division submits the annual update of the
Six‐Year Transportation Improvement Program (TIP) and Arterial Street Page 261 of 355
7l. ‐ Transportation Systems Division submits the annual update of the
Six‐Year Transportation Improvement Program (TIP) and Arterial Street Page 262 of 355
7l. ‐ Transportation Systems Division submits the annual update of the
Six‐Year Transportation Improvement Program (TIP) and Arterial Street Page 263 of 355
7l. ‐ Transportation Systems Division submits the annual update of the
Six‐Year Transportation Improvement Program (TIP) and Arterial Street Page 264 of 355
7l. ‐ Transportation Systems Division submits the annual update of the
Six‐Year Transportation Improvement Program (TIP) and Arterial Street Page 265 of 355
7l. ‐ Transportation Systems Division submits the annual update of the
Six‐Year Transportation Improvement Program (TIP) and Arterial Street Page 266 of 355
7l. ‐ Transportation Systems Division submits the annual update of the
Six‐Year Transportation Improvement Program (TIP) and Arterial Street Page 267 of 355
7l. ‐ Transportation Systems Division submits the annual update of the
Six‐Year Transportation Improvement Program (TIP) and Arterial Street Page 268 of 355
7l. ‐ Transportation Systems Division submits the annual update of the
Six‐Year Transportation Improvement Program (TIP) and Arterial Street Page 269 of 355
7l. ‐ Transportation Systems Division submits the annual update of the
Six‐Year Transportation Improvement Program (TIP) and Arterial Street Page 270 of 355
7l. ‐ Transportation Systems Division submits the annual update of the
Six‐Year Transportation Improvement Program (TIP) and Arterial Street Page 271 of 355
7l. ‐ Transportation Systems Division submits the annual update of the
Six‐Year Transportation Improvement Program (TIP) and Arterial Street Page 272 of 355
7l. ‐ Transportation Systems Division submits the annual update of the
Six‐Year Transportation Improvement Program (TIP) and Arterial Street Page 273 of 355
7l. ‐ Transportation Systems Division submits the annual update of the
Six‐Year Transportation Improvement Program (TIP) and Arterial Street Page 274 of 355
7l. ‐ Transportation Systems Division submits the annual update of the
Six‐Year Transportation Improvement Program (TIP) and Arterial Street Page 275 of 355
7l. ‐ Transportation Systems Division submits the annual update of the
Six‐Year Transportation Improvement Program (TIP) and Arterial Street Page 276 of 355
7l. ‐ Transportation Systems Division submits the annual update of the
Six‐Year Transportation Improvement Program (TIP) and Arterial Street Page 277 of 355
7l. ‐ Transportation Systems Division submits the annual update of the
Six‐Year Transportation Improvement Program (TIP) and Arterial Street Page 278 of 355
7l. ‐ Transportation Systems Division submits the annual update of the
Six‐Year Transportation Improvement Program (TIP) and Arterial Street Page 279 of 355
7l. ‐ Transportation Systems Division submits the annual update of the
Six‐Year Transportation Improvement Program (TIP) and Arterial Street Page 280 of 355
7l. ‐ Transportation Systems Division submits the annual update of the
Six‐Year Transportation Improvement Program (TIP) and Arterial Street Page 281 of 355
7l. ‐ Transportation Systems Division submits the annual update of the
Six‐Year Transportation Improvement Program (TIP) and Arterial Street Page 282 of 355
7l. ‐ Transportation Systems Division submits the annual update of the
Six‐Year Transportation Improvement Program (TIP) and Arterial Street Page 283 of 355
7l. ‐ Transportation Systems Division submits the annual update of the
Six‐Year Transportation Improvement Program (TIP) and Arterial Street Page 284 of 355
7l. ‐ Transportation Systems Division submits the annual update of the
Six‐Year Transportation Improvement Program (TIP) and Arterial Street Page 285 of 355
7l. ‐ Transportation Systems Division submits the annual update of the
Six‐Year Transportation Improvement Program (TIP) and Arterial Street Page 286 of 355
7l. ‐ Transportation Systems Division submits the annual update of the
Six‐Year Transportation Improvement Program (TIP) and Arterial Street Page 287 of 355
7l. ‐ Transportation Systems Division submits the annual update of the
Six‐Year Transportation Improvement Program (TIP) and Arterial Street Page 288 of 355
7l. ‐ Transportation Systems Division submits the annual update of the
Six‐Year Transportation Improvement Program (TIP) and Arterial Street Page 289 of 355
7l. ‐ Transportation Systems Division submits the annual update of the
Six‐Year Transportation Improvement Program (TIP) and Arterial Street Page 290 of 355
7l. ‐ Transportation Systems Division submits the annual update of the
Six‐Year Transportation Improvement Program (TIP) and Arterial Street Page 291 of 355
7l. ‐ Transportation Systems Division submits the annual update of the
Six‐Year Transportation Improvement Program (TIP) and Arterial Street Page 292 of 355
7l. ‐ Transportation Systems Division submits the annual update of the
Six‐Year Transportation Improvement Program (TIP) and Arterial Street Page 293 of 355
7l. ‐ Transportation Systems Division submits the annual update of the
Six‐Year Transportation Improvement Program (TIP) and Arterial Street Page 294 of 355
7l. ‐ Transportation Systems Division submits the annual update of the
Six‐Year Transportation Improvement Program (TIP) and Arterial Street Page 295 of 355
7l. ‐ Transportation Systems Division submits the annual update of the
Six‐Year Transportation Improvement Program (TIP) and Arterial Street Page 296 of 355
7l. ‐ Transportation Systems Division submits the annual update of the
Six‐Year Transportation Improvement Program (TIP) and Arterial Street Page 297 of 355
7l. ‐ Transportation Systems Division submits the annual update of the
Six‐Year Transportation Improvement Program (TIP) and Arterial Street Page 298 of 355
7l. ‐ Transportation Systems Division submits the annual update of the
Six‐Year Transportation Improvement Program (TIP) and Arterial Street Page 299 of 355
7l. ‐ Transportation Systems Division submits the annual update of the
Six‐Year Transportation Improvement Program (TIP) and Arterial Street Page 300 of 355
7l. ‐ Transportation Systems Division submits the annual update of the
Six‐Year Transportation Improvement Program (TIP) and Arterial Street Page 301 of 355
7l. ‐ Transportation Systems Division submits the annual update of the
Six‐Year Transportation Improvement Program (TIP) and Arterial Street Page 302 of 355
7l. ‐ Transportation Systems Division submits the annual update of the
Six‐Year Transportation Improvement Program (TIP) and Arterial Street Page 303 of 355
7l. ‐ Transportation Systems Division submits the annual update of the
Six‐Year Transportation Improvement Program (TIP) and Arterial Street Page 304 of 355
7l. ‐ Transportation Systems Division submits the annual update of the
Six‐Year Transportation Improvement Program (TIP) and Arterial Street Page 305 of 355
7l. ‐ Transportation Systems Division submits the annual update of the
Six‐Year Transportation Improvement Program (TIP) and Arterial Street Page 306 of 355
7l. ‐ Transportation Systems Division submits the annual update of the
Six‐Year Transportation Improvement Program (TIP) and Arterial Street Page 307 of 355
7l. ‐ Transportation Systems Division submits the annual update of the
Six‐Year Transportation Improvement Program (TIP) and Arterial Street Page 308 of 355
7l. ‐ Transportation Systems Division submits the annual update of the
Six‐Year Transportation Improvement Program (TIP) and Arterial Street Page 309 of 355
7l. ‐ Transportation Systems Division submits the annual update of the
Six‐Year Transportation Improvement Program (TIP) and Arterial Street Page 310 of 355
7l. ‐ Transportation Systems Division submits the annual update of the
Six‐Year Transportation Improvement Program (TIP) and Arterial Street Page 311 of 355
7l. ‐ Transportation Systems Division submits the annual update of the
Six‐Year Transportation Improvement Program (TIP) and Arterial Street Page 312 of 355
7l. ‐ Transportation Systems Division submits the annual update of the
Six‐Year Transportation Improvement Program (TIP) and Arterial Street Page 313 of 355
7l. ‐ Transportation Systems Division submits the annual update of the
Six‐Year Transportation Improvement Program (TIP) and Arterial Street Page 314 of 355
CITY OF RENTON COUNCIL AGENDA BILL
Subject/Title:
Kaynan, Inc. Lease Rate Increase
Meeting:
Regular Council - 11 Jul 2011
Exhibits:
Issue Paper
Addenda to Lease LAG 011-85 & LAG 003-84
Submitting Data: Dept/Div/Board:
Public Works
Staff Contact:
Ryan Zulauf, Airport Manager, (extension 7471)
Recommended Action:
Council Concur
Fiscal Impact:
Expenditure Required: $ Transfer Amendment: $
Amount Budgeted: $ Revenue Generated: $$5,314.20
Total Project Budget: $ City Share Total Project: $
SUMMARY OF ACTION:
Kaynan, Inc. has two leases on the Airport under LAG 011-85 and LAG 003-84. LAG 011-
85 is a ground lease for tiedown aircraft storage and LAG 003-84 is a ground lease for
hangars at 350 Airport Way. The periodic lease rate adjustment was effective June 1, 2011,
and a 2009 market appraisal was used to determine the new lease rate of $0.62 per square
foot per year. The old lease rate was $0.57 and the increase results in an annual revenue
increase of $5,314.20, for both leases.
STAFF RECOMMENDATION:
Approve a lease rate increase and authorize the Mayor and City Clerk to sign the addenda to
Kaynan, Inc.'s leases LAG 011-85 and LAG 003-84.
7m. ‐ Transportation Systems Division recommends approval of addenda
to airport leases LAG‐85‐011 and LAG‐84‐003, with Kaynan, Inc., to Page 315 of 355
PUBLIC WORKS DEPARTMENT
M E M 0 R A N D U M
DATE:
TO:
July 11, 2011
Terri Briere, Council President
Members of the Renton City Council
VIA:
FROM:
STAFF
CONTACT:
SUBJECT:
Denis Law, Mayor . /1
Gregg Zimmermaiifministrator
Ryan Zulauf, Airport Manager (ext 7471)
Kaynan, Inc. Lease Rate Increase
ISSUE:
Should Council approve a lease rate increase to Kaynan, Inc.'s leases LAG 011-85 and
LAG 003-84?
RECOMMENDATION:
Approve a lease rate increase and authorize the Mayor and City Clerk to sign the
addenda to Kaynan, Inc.'s leases LAG 011-85 and LAG 003-84.
BACKGROUND:
Kaynan, Inc. leases two parcels on the Airport; a 27,085 square foot area for tiedowns,
and a 79,199 square foot area for hangars. The terms of both leases allow for the City
to use a means other than the Consumer Price Index-Urban to determine the new lease
rate for each 3 year period.
The Airport contracted with Allen Brackett Shedd to perform a market appraisal in
February 2009, which established the fair market ground lease rate for all parcels on the
Airport at $0.62 per square foot per year. On March 28, 2011, Kaynan, Inc. was notified by
certified letter that the City would be using the market appraisal ground lease rate of
$0.62 per square foot per year.
7m. ‐ Transportation Systems Division recommends approval of addenda
to airport leases LAG‐85‐011 and LAG‐84‐003, with Kaynan, Inc., to Page 316 of 355
Terri Brier, Council President
Members of the Renton City Council
Page 2 of 2
July 11, 2011
For the period June 1, 2011 until May 31, 2014, Kaynan, Inc.'s ground lease amount
will be $16J92.70 for lease LAG 011-85 and $49,103.38 annually. This is a total increase
of
$5,314.20 annually for both leases.
cc: Rich Perteet, Deputy Public Works Administrator- Transportation
Connie Brundage, Transportation Administrative Secretary
Susan Campbeii-Hehr, Airport Secretary
H:\File Sys\AIR- Airport, Transportation Services Division\03 Projects\01Tasks\Agenda Bills\2011Agenda Bills\Agenda Bill- Kaynan rate increase
7m. ‐ Transportation Systems Division recommends approval of addenda
to airport leases LAG‐85‐011 and LAG‐84‐003, with Kaynan, Inc., to Page 317 of 355
7m. ‐ Transportation Systems Division recommends approval of addenda
to airport leases LAG‐85‐011 and LAG‐84‐003, with Kaynan, Inc., to Page 318 of 355
7m. ‐ Transportation Systems Division recommends approval of addenda
to airport leases LAG‐85‐011 and LAG‐84‐003, with Kaynan, Inc., to Page 319 of 355
7m. ‐ Transportation Systems Division recommends approval of addenda
to airport leases LAG‐85‐011 and LAG‐84‐003, with Kaynan, Inc., to Page 320 of 355
7m. ‐ Transportation Systems Division recommends approval of addenda
to airport leases LAG‐85‐011 and LAG‐84‐003, with Kaynan, Inc., to Page 321 of 355
CITY OF RENTON COUNCIL AGENDA BILL
Subject/Title:
Amendment No. 1 to Interlocal Agreement with
City of Seattle and Seattle Public Utilities
Meeting:
Regular Council - 11 Jul 2011
Exhibits:
Amendment No. 1
Resolution
Submitting Data: Dept/Div/Board:
Public Works
Staff Contact:
Abdoul Gafour, x7210
Recommended Action:
Refer to Utilities Committee
Fiscal Impact:
Expenditure Required: $ N/A Transfer Amendment: $N/A
Amount Budgeted: $ N/A Revenue Generated: $N/A
Total Project Budget: $ N/A City Share Total Project: $ N/A
SUMMARY OF ACTION:
The Water Utility requests Council’s approval of Amendment No. 1 to the Interlocal Agreement with the
City of Seattle and Seattle Public Utilities for the operation of Seattle’s water transmission lines within
Renton’s rights-of-way and for Renton’s use of real property owned by Seattle. The amendment will
extend the termination date of the Interlocal Agreement to January 1, 2062 to coincide with the
expiration date of the City’s 50-year (2012-2062) wholesale water supply contract with Seattle Public
Utilities.
STAFF RECOMMENDATION:
Approve Amendment No. 1 to the Interlocal Agreement with the City of Seattle and Seattle Public
Utilities to extend the termination date of the Interlocal Agreement to January 1, 2062 and adopt the
resolution.
7n. ‐ Utility Systems Division recommends approval of Amendment #1 to
the 1998 interlocal agreement (Franchise) with the City of Seattle and
Page 322 of 355
1
AMENDMENT NO. 1
TO THE INTERLOCAL AGREEMENT BETWEEN THE CITY OF RENTON
AND THE CITY OF SEATTLE AND SEATTLE PUBLIC UTILITIES
This Amendment to the Interlocal Agreement, hereinafter referred to as “Amendment”, is made
and entered into this ______ day of ___________, 2011, by and between the CITY OF SEATTLE,
a municipal corporation in the State of Washington, acting by and through its SEATTLE PUBLIC
UTILITIES, hereinafter referred to as “SEATTLE”, and the CITY OF RENTON, a municipal
corporation in the State of Washington, hereafter referred to as “RENTON”.
WHEREAS, SEATTLE and RENTON entered into an Interlocal Agreement, hereinafter referred to
as “Interlocal Agreement”, on November 9, 1998 and said Agreement is attached under Exhibit
A for reference;
WHEREAS, SEATTLE and RENTON mutually desires to amend the Interlocal Agreement to extend
the termination date of the agreement;
NOW, THEREFORE, SEATTLE and RENTON agrees to amend the Agreements as follows:
I.In accordance with Section III of the Interlocal Agreement, the duration of the
Agreement is extended until January 1, 2062.
II.No other provision of the Interlocal Agreement is affected by this Amendment.
IN WITNESS WHEREOF, the parties hereby execute this Amendment No. 1 to the Interlocal
Agreement
CITY OF RENTON CITY OF SEATTLE / SEATTLE PUBLIC UTILITIES
By:Denis Law, Mayor By:
Date: _____________________ Title: _____________________
Date: _____________________
Attest: Bonnie I. Walton, City Clerk
Date: ______________________
7n. ‐ Utility Systems Division recommends approval of Amendment #1 to
the 1998 interlocal agreement (Franchise) with the City of Seattle and
Page 323 of 355
7n. ‐ Utility Systems Division recommends approval of Amendment #1 to
the 1998 interlocal agreement (Franchise) with the City of Seattle and
Page 324 of 355
7n. ‐ Utility Systems Division recommends approval of Amendment #1 to
the 1998 interlocal agreement (Franchise) with the City of Seattle and
Page 325 of 355
CITY OF RENTON COUNCIL AGENDA BILL
Subject/Title:
Amendment No. 1 to Lease Agreement No. 327-
815 with the City of Seattle and Seattle Public
Utilities
Meeting:
Regular Council - 11 Jul 2011
Exhibits:
Amendment No. 1
Resolution
Submitting Data: Dept/Div/Board:
Public Works
Staff Contact:
Abdoul Gafour, x7210
Recommended Action:
Refer to Utilities Committee
Fiscal Impact:
Expenditure Required: $ N/A Transfer Amendment: $N/A
Amount Budgeted: $ N/A Revenue Generated: $N/A
Total Project Budget: $ N/A City Share Total Project: $ N/A
SUMMARY OF ACTION:
The Water Utility requests Council’s approval of Amendment No. 1 to Lease Agreement No. 327-815
with the City of Seattle and Seattle Public Utilities to extend the termination date of the lease
agreement to January 1, 2062, to coincide with the expiration date of the City’s 50-year (2012-2062)
wholesale water supply contract with Seattle Public Utilities.
The amendment will also revise Renton’s use of Seattle’s right-of-way for park purposes and for parking
and construction staging purposes for the new KCLS library site.
STAFF RECOMMENDATION:
Approve Amendment No. 1 to Lease Agreement No. 327-815 with the City of Seattle and Seattle Public
Utilities to extend the termination date to January 1, 2062, and to revise Renton’s use of Seattle’s right-
of-way for park purposes and for parking and construction staging purposes for the new KCLS library
site, and adopt the resolution.
7o. ‐ Utility Systems Division recommends approval of Amendment #1 to
the 1998 lease agreement (Franchise) with the City of Seattle and
Page 326 of 355
1
AMENDMENT NO. 1
TO LEASE AGREEMENT NO. 327-815
BETWEEN THE CITY OF RENTON
AND THE CITY OF SEATTLE AND SEATTLE PUBLIC UTILITIES
This Amendment to Lease Agreement No. 327-815, hereinafter referred to as “Amendment”, is
made and entered into this ______ day of ___________, 2011, by and between the CITY OF
SEATTLE, a municipal corporation in the State of Washington, acting by and through its SEATTLE
PUBLIC UTILITIES, hereinafter referred to as “SEATTLE”, and the CITY OF RENTON, a municipal
corporation in the State of Washington, hereafter referred to as “RENTON”.
WHEREAS, SEATTLE and RENTON entered into Lease Agreement No. 327-815, hereinafter
referred to as “Lease Agreement”, on November 9, 1998 and said Lease Agreement is attached
under Exhibit A for reference;
WHEREAS, SEATTLE and RENTON mutually desires to amend the Lease Agreement to extend the
termination date and to revise Section 2;
NOW, THEREFORE, SEATTLE and RENTON agrees to amend the Agreement as follows:
I.In accordance with Section 20 of the Lease Agreement, the duration of the Agreement is
extended until January 1, 2062.
II.Paragraph 2 of the Lease Agreement is deleted in its entirety and replaced with the
following:
2.Renton's Use of the Leased Land. Renton’s use of Parcel A shall be for public vehicle
parking, which may include sole dedicated parking for and access to the abutting north site
which is planned to be redeveloped as a KCLS (King County Library System) library and for a
pedestrian crossing. During the construction of the library, portions of Parcel A may be fenced
off and used as a staging area upon Seattle Public Utilities’ written approval of the plans prior to
using Parcel A for staging. Parcel B shall be used for park grounds. The leased land shall be
used for these purposes only. All designs for construction, improvements or repairs to the
parking, access to the abutting north site or park uses shall be approved in writing by Seattle
prior to construction, as more clearly defined in Section 7. A copy of detailed as-built plans
shall be provided to Seattle within 60 calendar days after construction is complete including any
reconstruction plans.
III.No other provision of the Lease Agreement is affected by this Amendment.
IN WITNESS WHEREOF, the parties hereby execute this Amendment No. 1 to Lease Agreement
No. 327-815
7o. ‐ Utility Systems Division recommends approval of Amendment #1 to
the 1998 lease agreement (Franchise) with the City of Seattle and
Page 327 of 355
2
CITY OF RENTON CITY OF SEATTLE / SEATTLE PUBLIC UTILITIES
By:Denis Law, Mayor By:
Date: _____________________ Title: _____________________
Date: _____________________
Attest: Bonnie I. Walton, City Clerk
Date: ______________________
7o. ‐ Utility Systems Division recommends approval of Amendment #1 to
the 1998 lease agreement (Franchise) with the City of Seattle and
Page 328 of 355
7o. ‐ Utility Systems Division recommends approval of Amendment #1 to
the 1998 lease agreement (Franchise) with the City of Seattle and
Page 329 of 355
7o. ‐ Utility Systems Division recommends approval of Amendment #1 to
the 1998 lease agreement (Franchise) with the City of Seattle and
Page 330 of 355
9a. ‐ Declaring 17040 108th Ave. SE (Old Fire Station 13 Property) as
surplus (See 8.a.)Page 331 of 355
9a. ‐ Declaring 17040 108th Ave. SE (Old Fire Station 13 Property) as
surplus (See 8.a.)Page 332 of 355
9a. ‐ Massage and spa business regulations code amendment (See 8.c.)
Page 333 of 355
9a. ‐ Massage and spa business regulations code amendment (See 8.c.)
Page 334 of 355
9a. ‐ Massage and spa business regulations code amendment (See 8.c.)
Page 335 of 355
9a. ‐ Massage and spa business regulations code amendment (See 8.c.)
Page 336 of 355
9a. ‐ Massage and spa business regulations code amendment (See 8.c.)
Page 337 of 355
9a. ‐ Massage and spa business regulations code amendment (See 8.c.)
Page 338 of 355
9a. ‐ Massage and spa business regulations code amendment (See 8.c.)
Page 339 of 355
9a. ‐ Massage and spa business regulations code amendment (See 8.c.)
Page 340 of 355
9a. ‐ Massage and spa business regulations code amendment (See 8.c.)
Page 341 of 355
9a. ‐ Massage and spa business regulations code amendment (See 8.c.)
Page 342 of 355
9a. ‐ Massage and spa business regulations code amendment (See 8.c.)
Page 343 of 355
9a. ‐ Massage and spa business regulations code amendment (See 8.c.)
Page 344 of 355
9a. ‐ Massage and spa business regulations code amendment (See 8.c.)
Page 345 of 355
9a. ‐ Massage and spa business regulations code amendment (See 8.c.)
Page 346 of 355
9a. ‐ Massage and spa business regulations code amendment (See 8.c.)
Page 347 of 355
9a. ‐ Massage and spa business regulations code amendment (See 8.c.)
Page 348 of 355
9a. ‐ Massage and spa business regulations code amendment (See 8.c.)
Page 349 of 355
9a. ‐ Massage and spa business regulations code amendment (See 8.c.)
Page 350 of 355
9a. ‐ Massage and spa business regulations code amendment (See 8.c.)
Page 351 of 355
9a. ‐ Massage and spa business regulations code amendment (See 8.c.)
Page 352 of 355
9a. ‐ Massage and spa business regulations code amendment (See 8.c.)
Page 353 of 355
9a. ‐ Massage and spa business regulations code amendment (See 8.c.)
Page 354 of 355
9a. ‐ Massage and spa business regulations code amendment (See 8.c.)
Page 355 of 355