HomeMy WebLinkAboutCommittee of the Whole - 05 Nov 2018 - Agenda - Pdf
AGENDA
Committee of the Whole Meeting
5:30 PM - Monday, November 5, 2018
Council Conference Room/Chambers, 7th Floor, City Hall – 1055 S. Grady Way
1. Executive Session - Council Conference Room
Potential Litigation with City Attorney pursuant to RCW 42.30.110(i) for 20 minutes
2. Issuance of Park Improvement Bonds - Council Chambers
at 5:50 pm
a) AB - 2254 Administrative Services Department recommends approval of the issuance of
Councilmanic bonds, generating approximately $14.5 million, for park improvements
funded by a property tax levy.
3. 2019 Legislative Priorities - Council Chambers
a) Presentation
4. Affordable Housing Briefing - Council Chambers
a) Memo
b) Draft Action Plan
AB - 2254
City Council Regular Meeting - 22 Oct 2018
SUBJECT/TITLE: Issuance of Park Improvement Bonds
RECOMMENDED ACTION: Refer to Committee of the Whole
DEPARTMENT: Administrative Services Department
STAFF CONTACT: Jan Hawn, Administrative Services Administrator
EXT.: 6858
FISCAL IMPACT SUMMARY:
Issuance of Councilmanic park improvement bonds will generate approximately $14.5 million in projected
proceeds funded by a property tax levy consistent with the recommendation of the Parks Citiz en's Advisory
Committee and prior Council approval on September 10, 2018.
SUMMARY OF ACTION:
The City Council created a Parks, Trails and Community Facilities Citizen’s Advisory Committee (CAC) in January
2018 and asked the CAC to “identify important gaps in City parks, trails and community facilities and make
recommendations for additional investments.” The CAC met nine times between January -May, 2018 and
subsequently identified a $70 million investment in order to make progress toward achieving the C ity’s vision
for its park system. As an alternative recommendation, the CAC identified approximately $14.5 million in
improvements needed to preserve the existing system should Council decide that a $70 million investments is
not optimal at this time. On August 6, 2018, EMC Research presented the results of a citizen poll.
Subsequently, on September 10, 2018, the Council voted to approve the Committee of the Whole report
recommending approval of a funding package of $14.5 million and further recommended that an ordinance be
prepared and presented.
Staff began work with Deanna Gregory of Pacifica Law Group, the City’s bond counsel, and Justin Monway of
Piper Jaffray & Company, the City’s financial advisor, on the preparation of an ordinance authorizing the
issuance of Councilmanic bonds which would generate approximately $14.5 million in project proceeds.
EXHIBITS:
A. Issue Paper
B. Draft Ordinance
STAFF RECOMMENDATION:
Approve the issuance of Councilmanic bonds generating approximately $14.5 million for park improvements
funded by a property tax levy. The bond ordinance will be presented for first reading November 5, 2018 and
second reading and adoption on November 19, 2018.
AGENDA ITEM #2. a)
ADMINISTRATIVE SERVICES
M E M O R A N D U M
DATE:October 12, 2018
TO:Ed Prince, Council President
Members of Renton City Council
VIA:Denis Law, Mayor
FROM:Jan Hawn, Administrative Services Administrator
STAFF CONTACT:Jan Hawn, 6858
SUBJECT:Issuance of Park Improvement Bonds
ISSUE
Should the City issue Councilmanic bonds generating approximately $14.5 million in
project proceeds to fund park improvements funded by a property tax levy?
RECOMMENDATION
Staff recommends approval of the issuance of Councilmanic park improvement bonds
generating approximately $14.5 million in project proceeds funded by a property tax
levy consistent with the recommendation of the Parks Citizen’s Advisory Committee and
prior Council approval on September 10, 2018.
BACKGROUND
The City Council created a Parks, Trails and Community Facilities Citizen’s Advisory
Committee (CAC) in January 2018 and asked the CAC to “identify important gaps in City
parks, trails and community facilities and make recommendations for additional
investments.” The CAC met nine times between January-May, 2018 and subsequently
identified a $70 million investment in order to make progress toward achieving the
City’s vision for its park system. As an alternative recommendation, the CAC identified
approximately $14.5 million in improvements needed to preserve the existing system
should Council decide that a $70 million investments is not optimal at this time. On
August 6, 2018, EMC Research presented the results of a citizen poll. Subsequently, on
September 10, 2018, the Council voted to approve the Committee of the Whole report
recommending approval of a funding package of $14.5 million and further
recommended that an ordinance be prepared and presented.
Staff began work with Deanna Gregory of Pacifica Law Group, the City’s bond counsel,
and Justin Monway of Piper Jaffray & Company, the City’s financial advisor, on the
preparation of an ordinance authorizing the issuance of Councilmanic bonds which
would generate approximately $14.5 million in project proceeds.
AGENDA ITEM #2. a)
Ed Prince, Council President
Members of Renton City Council
Page 2 of 2
October 12, 2018
CONCLUSION
Staff recommends the Council approve the issuance of Councilmanic bonds generating
approximately $14.5 million for park improvements funded by a property tax levy. The
bond ordinance will be presented for first reading on November 5, 2018 following a
discussion with the Committee of the Whole that same evening and second reading and
adoption on November 19, 2018.
AGENDA ITEM #2. a)
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CITY OF RENTON, WASHINGTON
LIMITED TAX GENERAL OBLIGATION BONDS
ORDINANCE NO. __________
AN ORDINANCE OF THE CITY OF RENTON, WASHINGTON,
AUTHORIZING THE ISSUANCE OF ONE OR MORE SERIES OF
LIMITED TAX GENERAL OBLIGATION BONDS IN THE AGGREGATE
PRINCIPAL AMOUNT OF NOT TO EXCEED $15,000,000 TO
FINANCE COSTS RELATED TO PARKS, TRAILS AND
RECREATIONAL FACILITY IMPROVEMENTS AND TO PAY COSTS
OF ISSUING THE BONDS; PROVIDING THE FORM, TERMS AND
COVENANTS OF THE BONDS; PROVIDING FOR THE DISPOSITION
OF THE PROCEEDS OF THE SALE OF THE BONDS; DELEGATING
AUTHORITY TO APPROVE THE METHOD OF SALE AND THE FINAL
TERMS OF THE BONDS; AND PROVIDING FOR OTHER MATTERS
RELATING THERETO.
PASSED _________________, 2018
PREPARED BY:
PACIFICA LAW GROUP LLP
Seattle, Washington
AGENDA ITEM #2. a)
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CITY OF RENTON, WASHINGTON
ORDINANCE NO. _______
TABLE OF CONTENTS*
Page
Section 1. Definitions ................................................................................................................2
Section 2. Authorization of the Projects ..................................................................................7
Section 3. Authorization and Description of Bonds .................................................................8
Section 4. Registration, Exchange and Payments ....................................................................8
Section 5. Redemption Prior to Maturity and Purchase of Bonds .........................................13
Section 6. Form of Bonds........................................................................................................17
Section 7. Execution of Bonds ................................................................................................18
Section 8. Application of Bond Proceeds; Project Fund .........................................................18
Section 9. Tax Covenants ........................................................................................................19
Section 10. Debt Service Fund and Provision for Tax Levy Payments .....................................21
Section 11. Defeasance.............................................................................................................22
Section 12. Sale of Bonds..........................................................................................................23
Section 13. Preliminary and Final Official Statements .............................................................26
Section 14. Undertaking to Provide Ongoing Disclosure .........................................................26
Section 15. Lost, Stolen or Destroyed Bonds ...........................................................................26
Section 16. Severability; Ratification ........................................................................................27
Section 17. Payments Due on Business Days ...........................................................................27
Section 18. Corrections by City Clerk........................................................................................27
Section 19. Effective Date .........................................................................................................28
Exhibit A: Form of Bond
* This Table of Contents is provided for convenience only and is not a part of this ordinance.
AGENDA ITEM #2. a)
CITY OF RENTON, WASHINGTON
ORDINANCE NO. __________
AN ORDINANCE OF THE CITY OF RENTON, WASHINGTON,
AUTHORIZING THE ISSUANCE OF ONE OR MORE SERIES OF
LIMITED TAX GENERAL OBLIGATION BONDS IN THE AGGREGATE
PRINCIPAL AMOUNT OF NOT TO EXCEED $15,000,000 TO
FINANCE COSTS RELATED TO PARKS, TRAILS AND
RECREATIONAL FACILITY IMPROVEMENTS AND TO PAY COSTS
OF ISSUING THE BONDS; PROVIDING THE FORM, TERMS AND
COVENANTS OF THE BONDS; PROVIDING FOR THE DISPOSITION
OF THE PROCEEDS OF THE SALE OF THE BONDS; DELEGATING
AUTHORITY TO APPROVE THE METHOD OF SALE AND THE FINAL
TERMS OF THE BONDS; AND PROVIDING FOR OTHER MATTERS
RELATING THERETO.
WHEREAS, the City Council (the “Council”) of the City of Renton, Washington (the
“City”) has determined it is in the best interest of the City to make certain improvements to
parks, trails and recreational facilities in the City (as further defined herein, the “Projects”);
and
WHEREAS, after due consideration the Council has determined that it is in the best
interest of the City to authorize the issuance and sale of limited tax general obligation bonds to
pay a portion of the costs of the Projects; and
WHEREAS, this Council wishes to delegate authority to the Mayor, the Chief
Administrative Officer and the Administrative Services Administrator of the City (as further
described herein, each a “Designated Representative”), for a limited time, to approve the
method of sale and the interest rates, maturity dates, redemption terms and principal
maturities for each series of bonds authorized herein within the parameters set by this
ordinance; and
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WHEREAS, the bonds shall be sold by negotiated or competitive public sale as set forth
herein;
NOW, THEREFORE, THE CITY COUNCIL OF THE CITY OF RENTON, WASHINGTON DO
ORDAIN AS FOLLOWS:
Section 1. Definitions. As used in this ordinance, the following words and terms
shall have the following meanings, unless the context or use indicates another or different
meaning or intent. Unless the context indicates otherwise, words importing the singular
number shall include the plural number and vice versa.
Administrative Services Administrator means the City’s Administrative Services
Administrator or the successor to such officer.
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 Counsel means Pacifica Law Group LLP or an attorney at law or a firm of
attorneys, selected by the City, of nationally recognized standing in matters pertaining to the
tax exempt nature of interest on bonds issued by states and their political subdivisions.
Bond Purchase Contract means the contract, if any, for the purchase of any Bonds of a
series sold by negotiated sale to an Underwriter, executed pursuant to Section 12.
Bond Register means the registration books maintained by the Bond Registrar for
purposes of identifying ownership of the Bonds or the nominee of each owner, and such other
information as the Bond Registrar shall determine.
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Bond Registrar means, initially, the fiscal agent of the State, 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.
Bonds mean the limited tax general obligation bonds authorized to be issued in one or
more series pursuant to this ordinance in the aggregate principal amount of not to exceed
$15,000,000.
Certificate of Award means the certificate, if any, for the purchase of a series of Bonds
awarding the Bonds to the initial purchaser for such Bonds as set forth in Section 12 of this
ordinance.
Chief Administrative Officer means the Chief Administrative Officer of the City or the
successor to such officer.
City means the City of Renton, a municipal corporation duly organized and existing
under the laws of the State.
City Clerk means the duly appointed and acting City Clerk of the City or the successor to
the duties of that office.
Closing means the date of issuance and delivery of a series of Bonds to the applicable
Underwriter.
Code means the Internal Revenue Code of 1986 as in effect on the date of issuance of
the Tax-Exempt Bonds or (except as otherwise referenced herein) as it may be amended to
apply to obligations issued on the date of issuance of the Tax-Exempt Bonds, together with
applicable proposed, temporary and final regulations promulgated, and applicable official
public guidance published, under the Code.
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Commission means the United States Securities and Exchange Commission.
Continuing Disclosure Certificate means the written undertaking for the benefit of the
owners and Beneficial Owners of the Bonds as required by Section (b)(5) of the Rule.
Council or City Council means the Renton City Council, as the general legislative body of
the City as the same is duly and regularly constituted from time to time.
Debt Service Fund means one or more funds or accounts created pursuant to this
ordinance for the purpose of paying debt service on a series of Bonds.
Designated Representative means each the Mayor, the Chief Administrative Officer and
the Administrative Services Administrator of the City, any successors to the functions of such
offices, and their designees. 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 this ordinance.
Fair Market Value means the price at which a willing buyer would purchase an
investment from a willing seller in a bona fide, arm's-length transaction, except for specified
investments as described in Treasury Regulation §1.148-5(d)(6), including United States
Treasury obligations, certificates of deposit, guaranteed investment contracts, and investments
for yield restricted defeasance escrows. Fair Market Value is generally determined on the date
on which a contract to purchase or sell an investment becomes binding, and, to the extent
required by the applicable regulations under the Code, the term “investment” will include a
hedge.
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Federal Tax Certificate means the certificate executed by a Designated Representative
setting forth the requirements of the Code for maintaining the tax exemption of interest on
any Tax-Exempt Bonds, and attachments thereto.
Government Obligations means those obligations now or hereafter defined as such in
chapter 39.53 RCW constituting direct obligations of, or obligations the principal of and
interest on which are unconditionally guaranteed by, the United States of America, as such
chapter may be hereafter amended or restated.
Letter of Representations means the Blanket Issuer Letter of Representations given by
the City to DTC, as amended from time to time.
Mayor or City Mayor means the elected Mayor of the City or the successor to the
duties of that office.
MSRB means the Municipal Securities Rulemaking Board or any successors to its
functions.
Official Statement means the disclosure documents prepared and delivered in
connection with the issuance of a series of Bonds.
Project Fund means the fund or account created pursuant to Section 8 of this
ordinance.
Projects mean the capital improvements authorized in Section 2 of this ordinance.
Record Date means the close of business for the Bond Registrar that is 15 days
preceding any interest and/or principal payment or redemption date.
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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 or its nominee
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.
Sale Document means the Bond Purchase Contract or Certificate of Award, if any,
executed by a Designated Representative in connection with the sale of a series of Bonds
pursuant to Section 12 of this ordinance, which shall provide for the name, principal and
interest payment dates and amounts, redemption/prepayment rights, and other terms to
describe such Bonds as determined to be necessary by a Designated Representative.
State means the State of Washington.
Taxable Bonds means any Bonds determined to be issued on a taxable basis pursuant
to Section 12.
Tax-Exempt Bonds mean any Bonds determined to be issued on a tax-exempt basis
under the Code pursuant to Section 12.
Underwriter means any underwriter, in the case of a negotiated sale, or initial
purchaser, in the case of a competitive sale, for a series of Bonds selected pursuant to
Section 12.
Section 2. Authorization of the Projects. The City owns and operates parks, trails
and recreational facilities. The City Council has adopted a Parks, Recreation and Natural Areas
Plan and a Trails and Bicycle Master Plan (the “Park Plans”) to provide a framework to guide
the City in establishing priorities, making decisions, funding improvements and operations, and
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ensuring the City’s facilities meet current demand and include capacity for future generations.
The Park Plans identify certain capital needs at City parks, trails and recreational facilities,
including, but not limited to, the construction, improvement, development, and equipping of
playgrounds, turf areas, ballfields, sport courts, multi-use and walking trails, parking facilities
and other park, trails and recreational improvements (together, the “Projects”) that will serve
the community and City programs. The Projects, as they are to be more fully described in the
plans and specifications prepared by and filed with the City, are hereby approved.
The cost of all necessary appraisals, negotiation, closing, architectural, engineering,
financial, legal and other consulting services, inspection and testing, demolition, administrative
and relocation expenses and other costs incurred in connection with the foregoing capital
improvements shall be deemed a part of the capital costs of such Projects. Such Projects shall
be complete with all necessary equipment and appurtenances.
The City will determine the exact specifications for the Projects, and the components
thereof, as well as the timing, order and manner of completing the components of the
Projects. The City may alter, make substitutions to, and amend the Projects as it determines
are in the best interests of the City and consistent with the general descriptions provided
herein.
Section 3. Authorization and Description of Bonds. For the purpose of paying
and/or reimbursing the City for costs of the Projects and paying costs of issuance, the City is
hereby authorized to issue and sell from time to time one or more series of limited tax general
obligation bonds in an aggregate principal amount not to exceed $15,000,000 (the “Bonds”).
AGENDA ITEM #2. a)
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The Bonds of each series shall be general obligations of the City and shall be designated
“City of Renton, Washington, Limited Tax General Obligation Bonds, 2019” with additional
series designation or other such designation as determined to be necessary by a Designated
Representative. The Bonds shall be dated as of the date of Closing for such series of Bonds;
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 series and maturity; shall be numbered
separately in such manner and with any additional designation as the Bond Registrar deems
necessary for purposes of identification; shall bear interest from their date payable on the
dates and commencing as provided in the applicable Sale Document; and shall mature on the
dates and in the principal amounts set forth in the applicable Sale Document, as approved and
executed by a Designated Representative pursuant to Section 12 of this ordinance.
Section 4. 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 the 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 designated office. The Bond Registrar may be removed at any time at the
option of the Administrative Services Administrator upon prior notice to the Bond Registrar
and a successor Bond Registrar appointed by the Administrative Services Administrator. 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
AGENDA ITEM #2. a)
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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 of a series as the absolute owner
thereof for all purposes (except as provided in a Continuing Disclosure Certificate), and neither
the City nor the Bond Registrar shall be affected by any notice to the contrary. Payment of any
such Bond shall be made only as described in Section 4(g), but such Bond may be transferred as
herein provided. All such payments made as described in Section 4(g) 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 of a series initially shall
be held by DTC acting as depository. The City has executed and delivered to DTC a Blanket
Issuer Letter of Representations. Neither the City nor the Bond Registrar shall have any
responsibility or obligation to DTC participants or the persons for whom they act as nominees
(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
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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 by a depository, DTC or its successor depository or its nominee 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.
(d)Use of Depository.
(1) The Bonds shall be registered initially in the name of “Cede & Co.”, as
nominee of DTC, with one Bond of each series 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 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 Administrative Services
Administrator 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
Administrative Services Administrator to discontinue the system of book entry transfers
through DTC or its successor (or any substitute depository or its successor), the Administrative
Services Administrator may hereafter appoint a substitute depository. Any such substitute
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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 Administrative Services Administrator, issue a single new Bond for
each maturity of that series 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 Administrative Services Administrator.
(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 Administrative Services Administrator determines that it is in the best
interest of the beneficial owners of the Bonds that such owners be able to obtain physical
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 by a depository. The Administrative Services
Administrator shall deliver a written request to the Bond Registrar, together with a supply of
physical 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 Administrative Services Administrator to the Bond Registrar, new Bonds of such
series 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
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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, series, 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 principal amount of Bonds of the same date, series, maturity, and interest
rate, in any authorized denomination. The Bond Registrar shall not be obligated to register the
transfer of or to exchange any Bond during the 15 days preceding any principal payment or
redemption date.
(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 or beneficial owners of
Bonds.
(g)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
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calculated on the basis of a year of 360 days and twelve 30-day months. For so long as all
Bonds are held by a depository, payments of principal thereof 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 held by a depository,
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 Record 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 by the Record Date), such payment shall be made by the Bond
Registrar by wire transfer 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 designated office of the Bond Registrar.
If any Bond is duly presented for payment and funds have not been provided by the City
on the applicable payment date, then interest will continue to accrue thereafter on the unpaid
principal thereof at the rate stated on the Bond until the Bond is paid.
Section 5. Redemption Prior to Maturity and Purchase of Bonds.
(a)Mandatory Redemption of Term Bonds and Optional Redemption. The Bonds of
each series shall be subject to mandatory redemption to the extent, if any, set forth in the Sale
Document and as approved by a Designated Representative pursuant to Section 12. The Bonds
of each series shall be subject to optional redemption on the dates, at the prices and under the
terms set forth in the Sale Document approved by a Designated Representative pursuant to
Section 12.
(b)Purchase of Bonds. The City reserves the right to purchase any or all of the
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Bonds offered to it at any time at a price deemed reasonable by the Administrative Services
Administrator plus accrued interest to the date of purchase.
(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 series and 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 by a depository, 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 of a series 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 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
designated 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 series, 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 by a depository, notice
of redemption shall be given in accordance with the operational arrangements of DTC as then
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in effect, and neither the City nor the Bond Registrar shall provide any notice of redemption to
any beneficial owners. The notice of redemption may be conditional. Unless waived by any
Registered 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 Bond 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 series and maturity (and, in the case of partial redemption, the respective
principal amounts) of the Bonds to be redeemed,
(D) any conditions to redemption,
(E) that unless conditional notice of redemption has been given and
such conditions have either been satisfied or waived, on the redemption date the redemption
price shall 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
AGENDA ITEM #2. a)
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(F) the place where such Bonds are to be surrendered for payment of
the redemption price, which place of payment shall be the designated office of the Bond
Registrar.
On or prior to any redemption date, unless such redemption has been rescinded or
revoked, 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. The City retains the right to rescind any redemption notice and the related optional
redemption of Bonds by giving notice of rescission to the affected Registered Owners at any
time on or prior to the scheduled redemption date. Any notice of optional redemption that is
so rescinded shall be of no effect, and the Bonds for which the notice of optional redemption
has been rescinded shall remain outstanding.
(2) Effect of Notice; Bonds Due. If notice of redemption has been given and not
rescinded or revoked, or if the conditions set forth in a conditional notice of redemption have
been satisfied or waived, the Bonds of such series or portions of Bonds 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
AGENDA ITEM #2. a)
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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
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 series and 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 14 and the applicable Continuing Disclosure Certificate 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 5, 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 6. Form of Bonds. The Bonds shall be in substantially the form set forth in
Exhibit A, which is incorporated herein by this reference.
Section 7. Execution of Bonds. The Bonds shall be executed on behalf of the City by
the facsimile or manual signature of the Mayor and shall be attested to by the facsimile or
manual signature of the City Clerk, and shall have the seal of the City impressed or a facsimile
thereof imprinted, or otherwise reproduced thereon.
AGENDA ITEM #2. a)
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In the event any officer who shall have signed or whose facsimile signatures appear on
any of the Bonds shall cease to be such officer of the City before said Bonds 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 said person had not ceased to be
such officer. Any Bond may be signed and attested on behalf of the City by such persons who,
at the actual date of execution of such Bond shall be the proper officer of the City, although at
the original date of such Bond such persons were not such officers of the City.
Only such Bonds as shall bear thereon a Certificate of Authentication manually
executed by an authorized representative of the Bond Registrar shall be valid or obligatory for
any purpose or entitled to the benefits of this ordinance. Such Certificate of Authentication
shall be conclusive evidence that the Bonds so authenticated have been duly executed,
authenticated and delivered hereunder and are entitled to the benefits of this ordinance.
Section 8. Application of Bond Proceeds; Project Fund. The Administrative Services
Administrator is hereby authorized to create a fund or account (the “Project Fund”), and
subaccounts therein as necessary, for the purposes set forth in this section. A portion of the
proceeds of each series of Bonds, net of any Underwriter’s discount and fees, shall be
deposited in the Project Fund in the amounts specified in the closing memorandum prepared
in connection with the issuance of such Bonds. Such proceeds shall be used to pay and/or
reimburse the City for the costs of the Projects and, unless otherwise provided by the City, to
pay costs of issuance of such Bonds.
AGENDA ITEM #2. a)
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The Administrative Services Administrator shall invest money in the Project Fund and
the subaccounts contained therein in such obligations as may now or hereafter be permitted
by law to cities of the State and which will mature prior to the date on which such money shall
be needed, but only to the extent that the same are acquired, valued and disposed of at Fair
Market Value. Upon completion of the Projects, any remaining Bond proceeds (including
interest earnings thereon) may be used for other capital projects of the City or shall be
transferred to the Debt Service Fund for the allocable series of Bonds.
Section 9. Tax Covenants. The City will take all actions necessary to assure the
exclusion of interest on any Tax-Exempt Bonds from the gross income of the owners of such
Tax-Exempt Bonds to the same extent as such interest is permitted to be excluded from gross
income under the Code as in effect on the date of issuance of such Tax-Exempt Bonds,
including but not limited to the following:
(a)Private Activity Bond Limitation. The City will assure that the proceeds of the
Tax-Exempt Bonds are not so used as to cause the Tax-Exempt Bonds to satisfy the private
business tests of Section 141(b) of the Code or the private loan financing test of Section 141(c)
of the Code.
(b)Limitations on Disposition of Projects. The City will not sell or otherwise transfer
or dispose of (i) any personal property components of the Projects other than in the ordinary
course of an established government program under Treasury Regulation 1.141-2(d)(4) or
(ii) any real property components of the Projects, unless it has received an opinion of Bond
Counsel to the effect that such disposition will not adversely affect the treatment of interest on
the Tax-Exempt Bonds as excludable from gross income for federal income tax purposes.
AGENDA ITEM #2. a)
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(c)Federal Guarantee Prohibition. The City will not take any action or permit or
suffer any action to be taken if the result of such action would be to cause any of the Tax-
Exempt Bonds to be “federally guaranteed” within the meaning of Section 149(b) of the Code.
(d)Rebate Requirement. The City will take any and all actions necessary to assure
compliance with Section 148(f) of the Code, relating to the rebate of excess investment
earnings, if any, to the federal government, to the extent that such section is applicable to the
Tax-Exempt Bonds.
(e)No Arbitrage. The City will not take, or permit or suffer to be taken, any action
with respect to the proceeds of the Tax-Exempt Bonds which, if such action had been
reasonably expected to have been taken, or had been deliberately and intentionally taken, on
the date of issuance of the Tax-Exempt Bonds would have caused the Tax-Exempt Bonds to be
“arbitrage bonds” within the meaning of Section 148 of the Code.
(f)Registration Covenant. The City will maintain a system for recording the
ownership of each Tax-Exempt Bond that complies with the provisions of Section 149 of the
Code until all Tax-Exempt Bonds have been surrendered and canceled.
(g)Record Retention. The City will retain its records of all accounting and
monitoring it carries out with respect to the Tax-Exempt Bonds for at least three years after the
Tax-Exempt Bonds mature or are redeemed (whichever is earlier); however, if the Tax-Exempt
Bonds are redeemed and refunded, the City will retain its records of accounting and
monitoring at least three years after the earlier of the maturity or redemption of the
obligations that refunded the Tax-Exempt Bonds.
AGENDA ITEM #2. a)
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(h)Compliance with Federal Tax Certificate. The City will comply with the provisions
of the Federal Tax Certificate with respect to a series of Tax-Exempt Bonds, which are
incorporated herein as if fully set forth herein. The covenants of this Section will survive
payment in full or defeasance of the Tax-Exempt Bonds.
(i)Bank Qualification. Each Designated Representative is hereby authorized to
designate each series of Bonds as “qualified tax-exempt obligations” under Section 265(b)(3) of
the Code for investment by financial institutions if the City does not reasonably expect to issue
more than $10,000,000 of qualified tax-exempt obligations in the calendar year in which such
Bonds are issued.
Section 10. Debt Service Fund and Provision for Tax Levy Payments. The City hereby
authorizes the creation of one or more funds, and accounts held therein, to be used for the
payment of debt service on each series of Bonds, designated as the “Limited Tax General
Obligation Bond Debt Service Fund” or other such designation selected by the City (the “Debt
Service 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 Debt Service Fund or from other
legally available sources, to the Bond Registrar for the payment of such principal or interest.
Money in the Debt Service Fund may be invested in legal investments for City funds, but only
to the extent that the same are acquired, valued and disposed of at Fair Market Value. Any
interest or profit from the investment of such money shall be deposited in the Debt Service
Fund.
The City hereby irrevocably covenants and agrees for as long as any of the Bonds are
outstanding and unpaid that each year it shall include in its budget and levy an ad valorem tax
AGENDA ITEM #2. a)
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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 as the same shall become 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 property tax
levy permitted to cities without a vote of the electorate, 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 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 such
taxes and for the prompt payment of the principal of and interest on the Bonds when due.
Section 11. Defeasance. In the event that the City, in order to effect the payment,
retirement or redemption of any Bond, sets aside in the Debt Service 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 Debt Service
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 Debt Service
AGENDA ITEM #2. a)
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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 of any Bonds of a series in
accordance with the applicable Continuing Disclosure Certificate.
Section 12. Sale of Bonds.
(a)Bond Sale. The Council has determined that it would be in the best interest of
the City to delegate to the Designated Representatives, for a limited time, the authority to
determine the method of sale for the Bonds, to designate each series of Bonds as Tax-Exempt
Bonds or Taxable Bonds, and to approve the final interest rates, maturity dates, redemption
terms and principal maturities for each series of Bonds. Bonds issued pursuant to the terms of
this ordinance for the purpose of paying and/or reimbursing the City for costs of the Projects
and paying related costs of issuance may be issued in one or more series from time to time so
long as all Bonds issued under this ordinance comply with the terms provided herein.
(b)Negotiated Bond Sale. If a Designated Representative determines that the
Bonds of a series are to be sold by negotiated public sale, a Designated Representative shall
solicit proposals from one or more qualified underwriting firms and shall select the
Underwriter that submits the proposal that is in the best interest of the City. The Bonds of
such series shall be sold to such Underwriter pursuant to the terms of a Bond Purchase
Contract.
(c)Competitive Sale. If a Designated Representative determines that the Bonds of a
series are to be sold at a competitive public sale, a Designated Representative shall with
respect to such series of Bonds: (1) establish the date of the public sale; (2) establish the
criteria by which the successful bidder will be determined; (3) request that a good faith deposit
AGENDA ITEM #2. a)
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accompany each bid; (4) cause notice of the public sale to be given; and (5) provide for such
other matters pertaining to the public sale as he or she deems necessary or desirable. The
Bonds of such series shall be sold to such Underwriter pursuant to the terms of a Certificate of
Award.
(d)Sale Parameters. Subject to the terms and conditions set forth in this Section
12, each Designated Representative is hereby authorized to approve the method of sale for
each series of Bonds, to designate each series of Bonds as Tax-Exempt Bonds or Taxable Bonds,
and to determine the final interest rates, aggregate principal amount, principal maturities, and
redemption rights for each series of Bonds in the manner provided hereafter so long as:
(1) the aggregate principal (face) amount of all Bonds issued under the
authority granted in this ordinance does not exceed $15,000,000,
(2) the final maturity date for the Bonds of each series is no later than
December 1, 2040,
(3) the aggregate purchase price for the Bonds of each series shall not be
less than 98% of the aggregate stated principal amount of the Bonds of each series,
(4) the true interest cost for the Tax-Exempt Bonds (in the aggregate for
such series) does not exceed 5.00%,
(5) the true interest cost for the Taxable Bonds (in the aggregate for such
series) does not exceed 5.50%, and
(6) the Bonds of each series otherwise conform to all other terms of this
ordinance.
AGENDA ITEM #2. a)
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Subject to the terms and conditions set forth in this section, each Designated
Representative is hereby authorized to select the Underwriter and to execute the appropriate
Sale Document on behalf of the City for each series of Bonds. The signature of one Designated
Representative shall be sufficient to bind the City.
Following the execution of the Sale Document, a Designated Representative shall
provide a report to the Council describing the terms of the Bonds sold pursuant to such Sale
Document and approved pursuant to the authority delegated in this section. The authority
granted to the Designated Representatives by this Section 12 shall expire one year after the
effective date of this ordinance. If a Sale Document for the Bonds has not been executed
within one year 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 are 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
Sale Document or establishing terms and conditions for the authority delegated under this
Section 12.
(e)Delivery of Bonds; Documentation. Upon the passage and approval of this
ordinance and execution of the Sale Document, the proper officials of the City, including the
Designated Representatives and the City Clerk, are authorized and directed to undertake all
action necessary for the prompt execution and delivery of the Bonds of a series to the
Underwriter and further to execute all closing certificates and documents required to effect
the closing and delivery of the Bonds of a series in accordance with the terms of the Sale
AGENDA ITEM #2. a)
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Document. Such documents may include, but are not limited to, documents related to a
municipal bond insurance policy delivered by an insurer to insure the payment when due of
the principal of and interest on all or a portion of the Bonds as provided therein, if such
insurance is determined by a Designated Representative to be in the best interest of the City.
Section 13. Preliminary and Final Official Statements. Each Designated
Representative is hereby authorized to deem final the preliminary Official Statement relating
to a series of Bonds for the purposes of the Rule. Each Designated Representative is further
authorized to approve for purposes of the Rule, on behalf of the City, the final Official
Statement relating to the issuance and sale of a series of Bonds and the distribution of the final
Official Statement in accordance with the Rule with such changes, if any, as may be deemed by
him or her to be appropriate.
Section 14. Undertaking to Provide Ongoing Disclosure. The City covenants to
execute and deliver at the time of Closing of a series of Bonds a Continuing Disclosure
Certificate. Each Designated Representative is hereby authorized to execute and deliver a
Continuing Disclosure Certificate upon the issuance, delivery and sale of a series of Bonds with
such terms and provisions as such officer shall deem appropriate and in the best interests of
the City.
Section 15. Lost, Stolen or Destroyed Bonds. In case any Bonds are lost, stolen or
destroyed, the Bond Registrar may authenticate and deliver a new Bond or Bonds of like series,
amount, date and tenor to the Registered Owner thereof if the Registered Owner pays the
expenses and charges of the Bond Registrar and the City in connection therewith and files with
the Bond Registrar and the City evidence satisfactory to both that such Bond or Bonds were
AGENDA ITEM #2. a)
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actually lost, stolen or destroyed and of his or her ownership thereof, and furnishes the City
and the Bond Registrar with indemnity satisfactory to both.
Section 16. 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 17. Payments Due on Business Days. If an interest and/or principal payment
date for the Bonds is not a business day, then payment shall be made on the next business day
and no interest shall accrue for the intervening period.
Section 18. Corrections by Clerk. Upon approval of the City Attorney and Bond
Counsel, the City Clerk is hereby authorized to make necessary corrections to this ordinance,
including but not limited to the correction of clerical errors; references to other local, state or
federal laws, codes, rules, or regulations; ordinance numbering and section/subsection
numbering; and other similar necessary corrections.
AGENDA ITEM #2. a)
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Section 19. Effective Date. This ordinance shall be effective upon its passage,
approval, and thirty (30) days after publication.
PASSED by the City Council this ____ day of _____________, 2018.
Jason A. Seth, CMC, City Clerk
APPROVED BY THE MAYOR this ____ day of __________, 2018.
Denis Law, Mayor
Approved as to form:
Pacifica Law Group LLP
Bond Counsel
Date of Publication: ___________________
AGENDA ITEM #2. a)
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Exhibit A
Form of Bond
[DTC LANGUAGE]
UNITED STATES OF AMERICA
NO. $___________
STATE OF WASHINGTON
CITY OF RENTON
LIMITED TAX GENERAL OBLIGATION BOND, 20___[(Taxable)]
INTEREST RATE: % MATURITY DATE: CUSIP NO.:
REGISTERED OWNER:
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 ___________, 20___, 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 ___________ 1, 20___, and semiannually thereafter on the first days of each
succeeding ___________ and ___________. Both principal of and interest on this bond are
payable in lawful money of the United States of America. The fiscal agent 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 ____________, 2018 (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.
AGENDA ITEM #2. a)
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This bond is one of an authorized issue of bonds of like series, 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 to pay the costs of certain park, trails and recreational facility
improvements and to pay costs of issuance.
The bonds of this issue are subject to redemption prior to their stated maturities as
provided in the [Bond Purchase Contract/Certificate of Award].
The City has irrevocably covenanted with the owner of this bond that it shall include in
its annual budget and levy taxes annually, within and a part of the tax levy permitted to the
City without a vote of the electorate, upon all the taxable property in the City in amounts
sufficient, together with other money legally available therefor, to pay the principal of and
interest on this bond when due. The full faith, credit and resources of the City are irrevocably
pledged for the annual levy and collection of such taxes and the prompt payment of such
principal and interest.
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 and to have happened, been done and performed
precedent to and in the issuance of this bond exist and 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.
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 to be imprinted, impressed or otherwise reproduced hereon as of this ____ day of
___________, 20___.
[SEAL]
CITY OF RENTON, WASHINGTON
By /s/ manual or facsimile
Mayor
ATTEST:
/s/ manual or facsimile
City Clerk
AGENDA ITEM #2. a)
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The Bond Registrar’s Certificate of Authentication on the Bonds shall be in substantially the
following form:
CERTIFICATE OF AUTHENTICATION
Date 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 Bonds, 20___, of the City of Renton, Washington,
dated ____________, 2018.
WASHINGTON STATE FISCAL AGENT, as
Bond Registrar
By
AGENDA ITEM #2. a)
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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 _______________ as that ordinance
appears in the minute book of the City; and the Ordinance will be in full force and effect after
its passage and publication as provided by law; and
2. That said meeting was duly convened and held in all respects in accordance with
law, and to the extent required by law, due and proper notice of such meeting was given; that
a legal quorum was present throughout the meeting and a legally sufficient number of
members of the Council voted in the proper manner for the passage of said Ordinance; that all
other requirements and proceedings incident to the proper passage of said Ordinance have
been fully fulfilled, carried out and otherwise observed; and that I am authorized to execute
this certificate.
3. That Ordinance No. ___________ has not been amended, supplemented or
rescinded since its passage and is in full force and effect and that I am authorized to execute
this certificate.
IN WITNESS WHEREOF, I have hereunto set my hand this ____ day of __________,
2018.
City Clerk
AGENDA ITEM #2. a)
Proposed 2019 Legislative Agendas
State
Regional
Federal AGENDA ITEM #3. a)
The Agendas
•For the first time, we are adding Regional and
Federal agendas to our list.
•Regional Agenda will help guide our work
with King County, Sound Transit, PSRC, Sound
Cities, etc.
•Federal Agenda not meant to be all-inclusive,
but rather IDs several issue areas where City
can play active role.AGENDA ITEM #3. a)
Proposed State Legislative
The Landscape
•Odd-numbered year means long Session (105
days –starts Jan. 14).
•Biennial budgets must be enacted –state has
three: Operating; Capital; Transportation.
•Ultra -slim majorities in Senate (25-24) and
House (50-48) for Democrats. “Conventional
wisdom,” Primary results, tell us Ds may
widen that majority, especially in the House.
•Note of Caution: “Conventional Wisdom” can
be wrong! More reliable snapshot after
November 6.AGENDA ITEM #3. a)
Major Issues & Challenges -State
•Mental Health system –Western State Hospital
in trouble with federal officials; Medicaid $ at
risk; Governor to introduce package to establish
more community facilities; Senate Republicans
offer $500 million bond bill.
•Culverts –U.S. Supreme Court didn’t act on state
appeal, state on hook for $2.4 billion in repairs
and removals to better ensure fish passage.
NOTE: Locals could be next.
•Affordable Housing/Homelessness –Markets
have cooled a bit, but large swaths of Central
Puget Sound have out-of-reach costs.
Affordable housing crisis, and resulting domino
impact on homelessness, top-of-mind.AGENDA ITEM #3. a)
Major Issues & Challenges -State
•McCleary has been satisfied, but key K-12
funding pressures remain –Numerous School
Districts devote extra McCleary $$ to double-digit
raises. How to accommodate students, whether
to re-rack property tax measures, possible Capital
Gains tax proposed by State Schools Supt. –all on
the table.
•Transportation –Key lawmakers discussing a
package of investments –will be heavily
influenced by voters’ decision on I-1631.AGENDA ITEM #3. a)
Cities/Local Governments
•“Ground zero” for the issues that play out when
acute affordable housing, homelessness, and
mental health challenges are mixed together.
•Infrastructure challenges --exacerbated by
population and job growth –remain intense.
GMA weak link: Lack of infrastructure funding to
deal with targeted growth.
•Transportation the most visible –but hardly the
only –infrastructure flash point.AGENDA ITEM #3. a)
Cities/Local Governments
•Economic development and recruitment tools
remain few and far between.
•Budget pressures, potential threats to revenue
distributions never go away, even when the
economy is humming (and within a few years,
flattening or a slight recession is predicted).AGENDA ITEM #3. a)
Recommendations for Renton
•Still makes sense to use our ‘bucket’s of public
safety, quality of life, fiscal stability, invest in
transportation.
•You will note we have two (2) capital requests.
•Similarly, two (2) transportation requests.
•Many of these issues will look familiar to you!
•NOTE: Covering “Key Priorities” this evening, but
open to questions on entirety of agenda.AGENDA ITEM #3. a)
Address Public Safety
•WSP Forensics Lab –Catch-up on processing of
sexual assault/rap kits critical to resolve criminal
investigations --Support WSP operating/capital
requests to fortify Vancouver as key through-put
for resolving backlog of 6,000 kits.
•Basic Law Enforcement Academy (BLEA)–
Strongly support increase in “base budget” level
from 10 classes to 19 classes. In actual
“appropriation,” ensure 17 state-funded classes
from 17-19 goes up to 19.AGENDA ITEM #3. a)
Address Public Safety
•Mental Health Field Response Teams –Renton
helped pass bill authorizing these and allocating
initial $1M for grants. Trueblood settlement now
references mental health teams, and WASPC to
seek $10M.
•Jail-bed rates paid to SCORE by Dept. of
Corrections (DOC) for state prisoners –Seek
major increase in $85/day max. Average for
others is $124. King County jail receiving more for
mental-health costs NOTE: This issue may get
negotiated, resolved pre-session.AGENDA ITEM #3. a)
Enhance Quality of Life
•Extend Burnett Linear Park north to 3rd Street,
establish ‘Renton Connector,’ bring bike/ped
network near Cedar River: This project is a key
part of the “Civic Core” vision, helps community
open its arms to river, serves lower-income SE
Renton neighborhood residents.
Capital Budget request:$2M
•Upgrade play equipment at Gene Coulon Park:
Council approved nearly $15M in councilmanic
bonds for parks deferred maintenance, but
Coulon an example of a regional park, so in
state’s interest to partner.
Capital Budget request: $1M AGENDA ITEM #3. a)
Enhance Quality of Life
•Affordable Housing, Homelessness, Mental
Health: Support initiatives, options to better
enable local governments to address affordable
housing and prevent homelessness. Includes
$200M request for Housing Trust Fund, renewed
effort on SHB 2437 to provide state sales tax
credits for affordable housing units.AGENDA ITEM #3. a)
Fiscal Stability
•Protect state -shared revenues and state
programs that provide resources to local
jurisdictions.
•Specifically, work to ensure no hits or diversions
on liquor revenues, municipal criminal justice
assistance, marijuana revenue distributions.AGENDA ITEM #3. a)
Invest in Transportation
•Interstate 405 HOT Lanes Authorization:
Strongly support omnibus legislation to authorize
tolling/managed lanes projects -key to timeliness
and success of ST3 Bus Rapid Transit along 405.
•Possible bonding of toll proceeds on 405/167: If
Legislature looks at 25-year bonding of proceeds
to fortify key infrastructure connections to 405,
dollars should be distributed equitably. Renton
will raise 405/N. 8th connection, among others.AGENDA ITEM #3. a)
Invest in Transportation
•Williams & Wells improvements related to SR
900 transition: Seek state $ to match local $ to
improve key intersections at Williams Avenue &
Wells Avenue South. Part of larger initiative to
convert one-way streets to two-way traffic,
create more ped/bike-friendly downtown.
Transportation Budget request: $1.75M
•I-405/44th “Green-scaping” and Gateway
features: State, ST interchange overhaul with
roundabouts, in-line access –but landscaping will
be minimal. Major northern gateway n and
landscaping, signage should reflect that.
Transportation Budget request: $210K AGENDA ITEM #3. a)
Invest in Transportation
•Transportation Revenue Package: Certain key
lawmakers discussing. We would strongly
support.AGENDA ITEM #3. a)
DEPARTMENT OF COMMUNITY
& ECONOMIC DEVELOPMENT
M E M O R A N D U M
DATE:November 5, 2018
TO:Ed Prince, Council President
Members of Renton City Council
FROM:C.E. “Chip” Vincent, CED Administrator
STAFF CONTACT:Paul Hintz, Senior Planner
SUBJECT:Recommendations of King County’s Regional Affordable
Housing Task Force
The King County Regional Affordable Housing Task Force began meeting in July 2017
with the intent of recommending a countywide affordable housing strategy to the
County Executive and County Council by December 2018. The latest draft Action Plan
(published October 2 and attached to this memo) was discussed by the Sound Cities
Association (SCA) Public Issues Committee (PIC) on October 10, and revised by the Task
Force at its meeting on October 24 (revisions not shown). This memo is intended to
provide a briefing on the recommendations of this group in order to provide
Councilmembers the requisite background information for their discussion at the next
Committee of the Whole meeting, in advance of the November 14 PIC meeting.
The recommendations of the Task Force are not mandates for cities. Rather, the Task
Force recognizes that the housing market in different parts of the County will call for
different solutions to preserve and increase the supply of affordable housing.
Many of the actions identified in the draft Action Plan are already being implemented to
some degree by cities in King County. The intent of the Task Force is to learn from these
programs and policies, identify priority actions, and collaborate to build capacity to
expand successful programs to a regional scale.
In addition to recommending specific strategies, the Task Force is recommending a
framework for ongoing collaboration among cities and with King County to implement
affordable housing strategies and monitor results. This is proposed to come in the form
of a standing committee of the King County Growth Management Planning Council.
The GMPC is the body in King County that develops and updates the King County
Countywide Planning Policies in the areas of housing, transportation, development
patterns, the environment, the economy, and public facilities and services. Members of
the GMPC include SCA, Seattle, Bellevue, and King County. This would be a significant
AGENDA ITEM #4. a)
Ed Prince, Council President
Page 2 of 3
November 5, 2018
Recommendations of King County’s Regional Affordable Housing Task Force
new body of work for the GMPC and King County is currently considering redirecting
staffing resources to support the new standing committee as part of its budget
deliberations.
Recommended Strategies
Setting a goal for building or preserving units of affordable housing to serve people
earning less than 50% of AMI.
Data presented to the Task Force identifies that there are currently more than 122,000
households in King County earning less than 50% of AMI that are cost-burdened (i.e.,
spending more than 30% of their income on housing). People whose housing costs
exceed the 30% threshold are more likely to lose housing because of increases to
housing costs, unexpected expenses, sudden loss of income, and other factors.
At its meeting on October 24, the Task Force discussed setting a five-year goal for
housing preservation and production dramatically above current rates. In the past five
years, the region has invested roughly $384 million per year in affordable housing from
federal, state, and local sources. These investments have produced or permanently
preserved an average of 2,500 homes per year. The goal set by the Task Force will serve
as the basis for measuring results of the Action Plan in terms of overall unit production
and assessing the level of funding that would be anticipated to be needed to meet that
goal.
Prioritizing Affordable Housing Near High-Capacity Transit.
Recommendations include establishing regional targets for affordable housing that
should be preserved and developed within a half-mile walkshed of high-capacity transit
stations; implementing incentives for private development of affordable housing near
existing and planned frequent transit routes; and for the county to consider bonding
against a portion of future Lodging Tax revenues to promote affordable housing near
transit, including setting aside a portion of this funding for city incentives.
Improving Tenant Protections.
Recommended strategies include collaborating to implement more consistent tenant
protections at the statewide and regional level to address just cause eviction, notice of
rent increases, and tenant relocation assistance; seeking ways to expand support for
low-income renters; and adopting local programs to improve the quality of existing
affordable housing. The Action Plan envisions ongoing collaboration to more closely
align regulations across jurisdictions. Cities and the county would work together to
identify and implement best practices and share model programs.
AGENDA ITEM #4. a)
Ed Prince, Council President
Page 3 of 3
November 5, 2018
Recommendations of King County’s Regional Affordable Housing Task Force
Protecting Communities of Color and Low-Income Communities from Displacement
Recommended strategies include improving engagement with communities of color and
low-income communities in the development of affordable housing plans and policies,
and implementing programs and policies that serve those at risk of displacement.
Actions to implement this goal include working collaboratively to develop a toolkit for
community engagement to help engage communities in local policy-making decisions.
Promoting Overall Housing Growth and Diversity of Housing Types.
Recommended strategies include updating zoning and land use regulations to
encourage the development of a more diverse housing supply; exempting certain
development fees for affordable housing; and incentivizing affordable housing
development by expanding tools for investments in local infrastructure tied to
affordability. The Action Plan envisions these efforts being supported through sharing of
model policies, consistent monitoring of countywide affordable housing supply, and
jointly advocating for support from the state legislature for condominium liability
reform and infrastructure financing tools connected to affordable housing outcomes.
Improving Community Engagement
Recommended strategies include improving engagement with neighborhoods and
residents in planning for affordable housing and improved coordination with the
philanthropic, business, and faith communities. The Action Plan envisions a
collaborative effort to develop tools and strategies to engage local communities to assist
with implementation of affordable housing plans and land use changes. In addition, the
Action Plan recommends creating a stakeholder partnership with the private sector and
faith community to encourage their investment in affordable housing and
communicating the need for affordable housing to the broader public.
Task Force Members
SCA Representatives:
Mayor David Baker, Kenmore, Task
Force Co-Chair
Mayor Ken Hearing, North Bend
Councilmember John Stokes, Bellevue
Councilmember Ryan McIrvin, Renton
City of Seattle Representatives:
Mayor Jenny Durkan
King County Representatives:
Councilmember Claudia Balducci, Task
Force Co-Chair
County Executive Dow Constantine
Councilmember Rod Dembowski
Councilmember Larry Gossett
Councilmember Jeanne Kohl-Welles
Councilmember Pete von Reichbauer
Councilmember Rob Johnson
AGENDA ITEM #4. a)
1
Updated: October 2, 2018
REGIONAL AFFORDABLE HOUSING TASK FORCE
FIVE-YEAR ACTION PLAN
PROBLEM STATEMENT:
Current estimates show a need for 244,000 additional, affordable homes in King County by
2040 so that no household earning 80% of Area Median Income (AMI) and below is cost
burdened.1 This includes 156,000 homes for households currently cost-burdened and an
additional 88,000 homes for growth in cost-burdened households between now and 2040.
When low-income families spend more than 30% of their income for housing they are cost
burdened and struggle to afford other basic necessities like food, transportation, health care,
and child care.
The need for new affordable homes is greatest for households earning 30% or less of AMI.
0 – 30% AMI 31 – 50% AMI 51 – 80% AMI
EXISTING NEED 73,000 49,400 33,500
GROWTH TO 2040 29,700 23,900 34,500
SUBTOTAL 102,700 73,300 68,000
% TOTAL NEED IN 2040 42%30%28%
Over the last decade, King County’s stock of housing affordable to households at or below 80%
AMI decreased by a net average of 5,500 rental homes per year, due to demolition and rising
rents. If current trends continue, by 2040, the county is set to lose all unsubsidized homes at
less than 50% AMI and nearly half of units affordable to households earning 50 to 80% AMI.
1 An individual or family that pays more than 30% of its income for housing costs is considered cost burdened.
AGENDA ITEM #4. b)
2
Updated: October 2, 2018
OVERALL GOAL: STRIVE TO ELIMINATE COST BURDEN FOR HOUSEHOLDS EARNING 80% AREA
MEDIAN INCOME AND BELOW, WITH A PRIORITY FOR SERVING HOUSEHOLDS AT OR BELOW 50%
AREA MEDIAN INCOME.
The region should adopt strategies to ensure an adequate housing supply countywide to meet
the needs of low-income individuals and families who are cost burdened. This includes
constructing new housing, preserving the quality and affordability of existing housing, and
providing subsidies when needed. Public resources should be prioritized for serving households
earning 50% AMI and below, while also leveraging private investments to support affordability
from 50% to 80% AMI. However, private market participation alone will be insufficient to
address the full need at 80% AMI and below. 2
GOAL 1: CREATE AND SUPPORT AN ONGOING STRUCTURE FOR REGIONAL COLLABORATION.
In recognition of the need for significantly more affordable housing, individual cities and the
County have been working to address affordability within their jurisdictions. There are strong
examples of interjurisdictional coordination, however, these efforts to date have not
collectively made sufficient progress to meet the full need of the community. The drivers and
effects of the affordable housing challenge are regional.
Strategy A: Create a standing committee of the Growth Management Planning Council
(GMPC) dedicated to affordable housing
The Committee will serve as a regional advisory body with the goal of advocating and assessing
progress toward implementation of the Action Plan. It will function as a point of coordination
and accountability for affordable housing efforts across King County.
Action Plan:
The GMPC will appoint members of the committee which shall be comprised of approximately
twenty members representing an equal balance of both governmental and non-governmental
organizations, including representation of communities impacted by displacement. The
committee will:
Hold regular meetings
Maintain a website of information and/or release an annual report to accomplish
the following:
2 With significant public support (reduced land costs and fees and significant density), some markets may be able
to incorporate lower affordability into private market developments.
AGENDA ITEM #4. b)
3
Updated: October 2, 2018
Review qualitative and quantitative metrics regarding countywide and
jurisdictional progress to implement the Action Plan and address the countywide
need and/or cost-burden gap, including a measurement plan that will, at a
minimum, track the percentage of housing supply at various levels of AMI and
track the region’s progress to meeting the overall goal identified by the Regional
Affordable Housing Task Force
Review and make recommendations to other governing bodies regarding actions
to implement the Action Plan, including:
o Funding/pursuing new and innovative financing strategies to significantly
address the affordable housing need in King County for adoption by
jurisdictions and/or voters in 2020
o Land use policies
o State legislative agenda items, such as increasing state funding for
affordable housing, expanding options for local funding, supporting the
creation and preservation of affordable housing, and creating uniform
statewide laws for tenant protections
Recommend policy positions for PSRC’s Growth Management Policy Board’s
consideration and approval
Review and provide guidance regarding alignment between the Action Plan and
comprehensive plans
Recommend amendments to the Countywide Planning Policies including regional
goals/metrics and land use policies
Coordinate support for increased federal funding for affordable housing
Work with existing and new sub-regional collaboration, such as ARCH.
Provide incentives for regional solutions which promote strategies that are
broader than one jurisdiction at a time
Provide technical assistance to the cities and County on affordable housing
policy, including identification and sharing of best practices and model legislation
Be supported by an Inter-Jurisdictional Team (IJT) that builds on but will meet
separately from the GMPC IJT. The Committee IJT would include staff
representing:
o King County Council, Department of Community and Human
Services, Office of Performance Strategy and Budget, Department
of Local Services (Division of Permitting), ARCH, SKHHP/SKC
representatives, City of Seattle, additional city staff in proportion
to County staff, and additional staff from external/non-
governmental partners
AGENDA ITEM #4. b)
4
Updated: October 2, 2018
NOTE: The Regional Affordable Housing Task Force recognizes that the “One Table” effort to
address the root causes of homelessness, which includes but is broader than affordability, is
also engaged in discussions about governance. As One Table and the Task Force finalize their
governance recommendations, they should work together to harmonize their
recommendations.
Strategy B: Support the creation and operation of sub-regional collaborations to increase and
preserve affordable housing
Action Plan:
Support the creation of a South King County sub-regional collaboration
Cities and County fund operations of sub-regional collaborations
Encourage the growth and success of existing sub-regional collaborations
GOAL 2: INCREASE CONSTRUCTION AND PRESERVATION OF AFFORDABLE HOMES FOR HOUSEHOLDS
EARNING LESS THAN 50% AREA MEDIAN INCOME.3
Currently, 236,000 King County households earn less than 50% AMI, and yet only 128,000
homes are affordable at this income level. Traditionally, the private housing market has not
been positioned to address the housing needs at this income level and government bears this
responsibility. The region must increase housing supply and other supports for the lowest-
income households. This will both secure housing stability for these households and also reduce
pressure on existing and future housing, improving housing access for all incomes across the
region.
While implementing the land use and policy changes identified in the Five-Year Action Plan will
help meet the need, the Regional Affordable Housing Task Force’s work has clearly pointed to a
need for significant new resources if the region is to meet the goal of reducing the number of
cost-burdened households at 80% of AMI and below, with a particular focus on the distinct
needs of households who earn at or below 50% AMI.
On average in the last five years, roughly $384 million a year is invested in affordable housing in
King County from Federal, State and Local sources:
3 “Low-income” is defined as a person or family earning at or below 80% of AMI ($82,700 for a family of four or
$57,900 for an individual).
AGENDA ITEM #4. b)
5
Updated: October 2, 2018
Current Investments
Annual averaged based on 2012-2017
Annual
Amount
Federal
9% LIHTC $61,500,000
4% LIHTC $163,500,000
Subtotal $225,000,000
State
Housing Trust Fund $12,000,000
Subtotal $12,000,000
King County
Lodging Tax $7,500,000
Document Recording Fee $2,300,000
VSHSL Property Tax $2,500,000
MIDD Sales Tax $2,000,000
HOME Funds $2,000,000
Subtotal $16,300,000
Cities
Seattle $49,000,000
ARCH $4,700,000
Subtotal $53,700,000
Private
Fundraising $19,000,000
Debt Financing $58,000,000
Subtotal $77,000,000
ANNUAL TOTAL $384,000,000
In recent years, the cost to preserve or build affordable housing has increased, just like the cost
of all housing types. That means that public dollars have been able to purchase fewer units
over time and that going forward it is reasonable to assume that affordable units will cost, on
average, $350,000 to preserve or build.
In this context, the Regional Affordable Housing Task Force has set the goal of building or
preserving XX,XXX units of affordable housing to serve people earning less than 50% AMI over
the next five years.
AGENDA ITEM #4. b)
6
Updated: October 2, 2018
Table 1 – Task Force Options
Units over next 5 years
Option 1 Continue current production rate*
12,500
Option 2 Double current production rate
25,000
Option 3
Assume annual production of 1/20 of total
need
44,000
* On average, the region has produced 2,500 units per year over the last five years.
Achieving this production goal will require the region to employ all the tools it has available,
including land use and zoning changes. It is also important to note that not all of the funding
for those units must or will be raised locally. The Federal government will and should play a
significant role in funding affordable housing, primarily through the Low Income Housing Tax
Credit Program (LIHTC). Assuming that the Federal government continues to make
contributions on a par with the last five years, 58% of the need will be met with Federal
resources.
Strategy A: The ongoing structure for regional collaboration will work with cities and the
County to identify and prioritize new resources to build or preserve XX,XXX units in the next
five years and track progress toward the production goal.
Throughout the Task Force process, Task Force members, Standing Advisory Committee
members and members of the public cited the need to expand the types of funding available to
fund affordable housing, particularly given the regressive nature of Washington State’s tax
code. Examples of more progressive funding sources include a capital gains tax and an income
tax.
Action Plan:
Cities and the County should identify and adopt revenue sources available to them
sufficient to support the local share of funding XX,XXX units over five years
Cities and the County should collectively advocate to maintain and increase Federal
resources directed toward affordable housing in King County, which might include
increasing expanding the 9% LIHTC or maximizing the bonding capacity of the 4% LIHTC
Cities and the County should collectively advocate for increased State resources to
support affordable housing in King County, which might include increasing contributions
to the Housing Trust Fund, a sales tax credit, or allowing cities to collect up to a 0.25%
Real Estate Excise Tax
Cities and the County should explore unused authority to raise revenue to support the
goal of building or preserving XX,XXX units over five years. Unused authority might
include a countywide property tax, a countywide sales tax, free or discounted publicly
owned land
AGENDA ITEM #4. b)
7
Updated: October 2, 2018
Cities and the County should work with business and philanthropy to increase and
effectively leverage private investments in affordable housing
Cities and the County should pursue strategies to reduce the cost of developing
affordable units, which might include the reduction or elimination of impact or
connection fees, or a sales tax fee exemption on affordable developments
The regional governance structure will monitor County and city progress toward raising
funds necessary to produce XX,XXX units in the next five years
Strategy B: Make available at no cost, at deep discount, or for long term lease, under-utilized
property from State, County, cities, and non-profit/faith communities
Action Plan:
State, County, and cities to expand coordination to identify, acquire and develop
property for affordable housing.
Track and report progress on REDI fund and Home & Hope.
Jurisdictions identify one or more parcels in their boundaries to prioritize for affordable
housing (for-profit or non-profit, new or preserved)
County to develop policies for the sale of County-owned property at reduced or no cost
when used for affordable housing, which may be used as a model ordinance by cities
Strategy C: Develop a short-term acquisition loan fund to enable rapid response to preserve
affordable housing developments when they are put on the market for sale
Action Plan:
Cities and county identify entity to inventory all large (50+ unit) privately owned
affordable multifamily properties at risk of redevelopment or rapid rent escalation
Measure and monitor progress in preserving privately owned affordable housing
through nonprofit acquisition or other means
Partner with existing efforts and organizations and support additional funding to fill
gaps in current preservation efforts
Dedicate a portion of new funding streams to this strategy
GOAL 3: Prioritize affordability accessible within a half mile walkshed of existing
and planned frequent transit service, with a particular priority for high-capacity
transit stations
Progress in meeting this goal will be measured, using the following regionwide metrics4:5
4 PSRC anticipates that more than 50% of housing growth will occur in TOD.
5 Background: Between 2010-2015:
• 20% of population growth occurred in station areas
• 45% of population in station areas are people of color v. 34% in the region
• 1/3 of housing permits issued were in station areas
AGENDA ITEM #4. b)
8
Updated: October 2, 2018
25% of existing housing remains affordable at 80% AMI and below
50% of new housing is affordable at 80% AMI and below
80% of available public land suitable for housing is prioritized for housing affordable at
or below 50% AMI.
The region’s continuing expansion of high capacity transit, including light rail and bus rapid
transit, provide one of the best opportunities to expand housing options available to a wide
range of incomes. Such housing will be particularly valuable to low-income households, who are
the most dependent on transit and yet often the least able to benefit from these neighborhood
amenities due to increasing costs nearby. This recommendation recognizes that the region
must promote or require affordable housing near high-capacity transit stations and along
transit corridors, as well as in regional growth centers. Additionally, an emphasis should be
placed on developing and preserving units that meets the needs of the lowest income
households, including families and a balanced mix of unit sizes (studio through three-bedroom
units).
Strategy A: Implement comprehensive inclusionary/incentive housing policies all existing and
planned frequent transit service to achieve the deepest affordability possible through land
use incentives to be identified by local jurisdictions, which may include:
a. Increased density
b. Reduced parking requirements
c. Reduced permit fees
d. Exempted impact fees
e. Multi-family property tax exemptions
f. Programmatic EIS
Action Plan:
County or governance organization to provide technical assistance in designing
inclusionary/incentive housing programs
County or governance organization to provide website of example ordinances
All parties propose and apply for State planning dollars
Evaluate and update zoning in transit areas in advance of transit infrastructure
investments
Evaluate the impact of development fee reductions in transit areas and implement
reductions if positive impact
Regularly measure implementation against goal
Strategy B: Maximize resources available for Transit Oriented Development in the near term
• 34,000 homes were added in station areas
• Currently, approximately 25% of housing in station areas is affordable at less than 80% AMI
(19% in SEA, 4% in EKC, 80% in SKC)
AGENDA ITEM #4. b)
9
Updated: October 2, 2018
Action Plan:
King County to consider bonding against future Lodging Tax revenues for Transit
Oriented Development and use a portion of the funds to incentivize cities to support
more affordable housing in their jurisdictions
King County to evaluate potential for the current Transfer of Development Rights
program, which preserves rural and resource lands, to incentivize affordability outcomes
if a receiving site is within a transit walkshed, among other places
Strategy C: Create and implement regional land acquisition and development strategy
Action Plan:
Identify priority “pipeline” of property for acquisition and development
Adopt and implement property value discount legislation/guidance as needed, including
updated valuation guidance
Fund land acquisition, aligned with Goal 2, Strategy B
Adopt increased zoning to maximize affordable housing on acquired parcels
Identity entity to purchase and hold land prior to construction
Fund capital construction and preservation, including private sector investments
GOAL 4: PRESERVE ACCESS TO AFFORDABLE HOMES FOR RENTERS BY SUPPORTING TENANT
PROTECTIONS TO INCREASE HOUSING STABILITY AND REDUCE RISK OF HOMELESSNESS.
In 2017, approximately 4,000 renters were evicted from their housing. Evictions create barriers
to future housing for those households, increase risk of homelessness, and are costly and time-
consuming for property owners and tenants. In addition, particularly at a time of low vacancies,
tenants have few opportunities to quickly secure housing stability when their incomes can’t
keep up with rising rents. The region should support a comprehensive approach for increasing
education, support and eviction prevention to increase stability for renters and predictability
for property owners.
Strategy A: Propose and support legislation and statewide policies related to tenant
protection to ease implementation and provide consistency for landlords
a. Just Cause Eviction
b. Notice of rent increase
c. Increase protections for renters facing relocation or displacement
d. Expand eviction prevention, relocation and other services and assistance
e. Prohibit discrimination in housing against tenants and potential tenants with arrest
records, conviction records, or criminal history
Action Plan:
Support the development and adoption of statewide legislation and policy related to
tenant protections
AGENDA ITEM #4. b)
10
Updated: October 2, 2018
County or governance organization to review proposed statewide policies and
legislation
Strategy B: Strive to more widely adopt model, expanded tenant protection ordinances
countywide and provide implementation support for:
a. Source of Income discrimination protection
b. Just Cause Eviction
c. Notice of rent increase
d. Tenant relocation assistance
e. Rental inspection programs
f. Prohibiting discrimination in housing against tenants and potential tenants with arrest
records, conviction records, or criminal history
Action Plan:
County or governance organization to provide model ordinances
County or governance organization to pursue a signed ILA for enforcement support
County or governance organization to identify resources to conduct work
County or governance organization to increase education for tenants and property
owners regarding their respective rights and responsibilities
Cities and County to adopt
Strategy BC: Expand supports for low-income renters and people with disabilities
Action Plan:
Utilize funds from the Veterans, Seniors and Human Services Levy for shallow rent
subsidies to help keep people in their homes
Increase funding for emergency rental assistance
Increase deep subsidies (in addition to shallow)
Fund services to address barriers to housing, including tenant screening reports
Expand civil legal aid support
Expand education of tenant and property owner rights and responsibilities
Increase funding for services that help people with disabilities stay in their homes
and/or age in place
Strategy D: Adopt programs and policies to improve the quality of housing in conjunction
with necessary tenant protections
Action Plan:
Adopt and implement proactive rental inspection policies
AGENDA ITEM #4. b)
11
Updated: October 2, 2018
Implement robust, proactive code enforcement programs, in partnership with
marginalized communities to avoid inequitable impacts
Invest in community health workers to promote healthy housing education and housing
maintenance for highest risk of adverse health outcomes
Partner with Aging & Disability organizations to integrate accessibility services
GOAL 5: PROTECT EXISTING COMMUNITIES OF COLOR AND LOW-INCOME COMMUNITIES FROM
DISPLACEMENT IN GENTRIFYING COMMUNITIES.
Communities throughout the region are experiencing dramatically increasing housing costs and
a growing demand for housing especially, but not exclusively, within urban areas. This places
communities with a high population of low-income renters and people of color at an increasing
risk of displacement, further compounding the historic injustice of exclusion these communities
have experienced as a result of laws and policies on the local and federal level. The same
communities that were once limited by law to living in specific geographic areas are now being
pushed out of those areas when the neighborhood is gentrified and becomes more desirable to
higher-income households. The region should support community-led preservation strategies
that enable existing residents to remain in their communities and allow them to benefit from
the opportunities of growth of redevelopment.
Strategy A: Authentically engage communities of color and low-income communities in
affordable housing development and policy decisions
Action Plan:
County or governance organization to provide capacity grants to small organizations
representing communities of color or low-income communities to support their
engagement in affordable housing development
County or governance organization to contract for a toolkit/checklist on community
engagement in planning discussions
All jurisdictions to utilize the toolkit and intentionally include and solicit engagement
from members of communities of color or low-income households in policy decision-
making and committees
Strategy B: Increase investments in communities of color and low-income communities by
developing programs and policies that serve individuals and families at risk of displacement
Action Plan:
Use Seattle's Equitable Development Initiative as a model for how government can
invest in under-represented communities to promote community-driven development
Build upon the work of the Communities of Opportunity6
6 Communities of Opportunity, a King County and Seattle Foundation partnership, is an inclusive table where
community members and leaders, organizations, and institutions share power, voice, and resources. COO has four
AGENDA ITEM #4. b)
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Updated: October 2, 2018
Include cities, investors, and community-based organizations in development of
certification process and matching dollars for socially responsible, equitable Opportunity
Zone7 investments that prevent displacement
Cities and County to expand requirements to affirmatively market housing programs
and enhance work to align affordable housing strategies with federal requirements to
Affirmatively Further Fair Housing
Encourage homeownership opportunities as a way to prevent displacement within
communities of color while also promoting the growth of intergenerational wealth
Where appropriate, acquire and preserve manufactured housing communities to
prevent displacement
GOAL 6: PROMOTE GREATER HOUSING GROWTH AND DIVERSITy TO ACHIEVE A VARIETY OF
HOUSING TYPES AT A RANGE OF AFFORDABILITY AND IMPROVE JOBS/HOUSING CONNECTIONS
THROUGHOUT KING COUNTY.
From 2011 through 2017, more than 96,200 new households came into King County, but only
64,600 new units were built. Despite a building boom, the private market is not keeping pace
with population growth in recent years, which contributes to rapid increases in home purchase
costs and rents, as well as low vacancy rates. In addition, much of the new production is at the
high end of the market and does not meet the needs of all household types. The region should
adopt policies that streamline regulations and provide greater zoning flexibility in order to
increase and diversify market-rate housing production to better keep pace with population
growth. In addition, greater land use and regulatory support is needed to address the needs of
older adults, larger households, and people with disabilities. Cities should intentionally plan for
and promote affordable housing in the same locations where they are accommodating future
growth and density.
Strategy A: Update zoning and land use regulations (including in single-family low-rise zones)
to increase and diversify housing choices, including but not limited to:
a. Accessory Dwelling Units (ADU) and Detached Accessory Dwelling Units (DADUs)
b. Duplex, Triplex, Four-plex
c. Zero lot line town homes, row houses, and stacked flats
d. Micro/efficiency units
priority areas: quality affordable housing; providing healthy, affordable food and safe places outside to be
physically active, especially for youth; increased economic opportunity; and strong community connections. The
County portion of COO is funded with 10% of the Best Starts for Kids Levy proceeds.
7 Opportunity Zones are a community development program established by Congress in the Tax Cuts and Jobs Act
of 2017 to encourage long-term investments in low-income urban and rural communities nationwide. A low-
income community is one with a poverty rate of at least 20% and low-income is a household earning up to 80%
AMI. King County Opportunity Zones can be found on the state Department of Commerce website
(commerce.wa.gov).
AGENDA ITEM #4. b)
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Updated: October 2, 2018
Action Plan:
County or governance organization to provide model ordinances
County or governance organization to incentivize cities adopting and implementing
strategies that will result in the highest impact towards addressing the affordable
housing gap, specifically at the lowest income levels
Cities to review and update zoning and land use code to increase density
Explore opportunities to pilot innovative housing in industrial zones, with a focus on
TOD and industrial buffer zones
Update building codes to promote more housing growth and innovative, low-cost
development
As part of any updated zoning, evaluate feasibility of incorporating affordable housing
provisions
Promote units that accommodate large households and/or multiple bedrooms
Strategy B: Decrease costs to build and operate housing affordable to low-income
households
Action Plan:
Maximize and expand use of Multi-Family Tax Exemption
County to reduce sewer connection fees
Cities to reduce fees for ADUs, other
Jurisdictions to streamline permitting process for affordable housing development
Support condominium liability reform
State legislature to exempt affordable housing from sales tax
Strategy C: Incentivize growth and affordability goals by expanding tools for investments in
local infrastructure.
Action Plan:
Advocate for a strong, equitable financing tool that captures value from development to
fund infrastructure and affordable housing investments (aka: value-capture or tax-
increment financing tools)
Advocate for state public works trust fund investments—connect to local affordable
housing outcomes
Strategy D: Expand and preserve homeownership opportunities for low-income households
Action Plan:
Increase educational efforts to ensure maximum use of property tax relief programs to
help sustain homeownership for low-income individuals
Support alternative homeownership models that lower barriers to ownership and
provide long-term affordability, such as community land trusts, co-ops, and rent to own
models
AGENDA ITEM #4. b)
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Updated: October 2, 2018
Expand targeted foreclosure prevention
Where appropriate, preserve existing manufactured housing communities through use-
specific zoning or transfer of development rights
GOAL 7: BETTER ENGAGE LOCAL COMMUNITIES AND OTHER PARTNERS IN ADDRESSING THE
URGENT NEED FOR AND BENEFITS OF AFFORDABLE HOUSING.
Most decisions regarding land use and planning for affordable housing happen at the city and
neighborhood level. Therefore, the region should better support engagement of local
communities and city governments to create informed communities and implement strategies
to meet the full range of housing needs. This includes using new, creative strategies to better
engage residents around the benefits of having affordable housing in all parts of the county and
in their neighborhoods. It also includes providing greater transparency and accountability on
actions taken and results delivered. Given the significant countywide need for affordable
housing, the region needs more urgent and scalable action to be taken at the neighborhood,
city, and regional level.
Strategy A: Support engagement of local communities and residents in planning efforts to
achieve more affordable housing
Action Plan:
County or governance organization to develop toolkits and strategies to better engage
neighborhoods and residents in affordable housing development
Use existing data and tools to greatest extent possible, i.e. PSRC Vision 2050 work
Jurisdictions use community engagement techniques, which may include providing
evening meetings, translation services, food, and child care, or travel stipends for low-
income individuals and historically marginalized communities to participate, that
promote more equitable engagement in zoning and siting decisions
Strategy B: Expand engagement of non-governmental partners (philanthropy, employers,
investors, private developers and faith communities) to support efforts to build and site more
affordable housing
Action Plan:
Create stakeholder partnerships with business, philanthropy, non-profits, faith-based
organizations, the health care sector, and others to encourage investments in affordable
housing
Encourage business, organized labor, and philanthropy to support public dialogue on
affordable housing
AGENDA ITEM #4. b)