HomeMy WebLinkAboutCouncil 06/20/2011AGENDA
RENTON CITY COUNCIL
REGULAR MEETING
June 20, 2011
Monday, 7 p.m.
1.CALL TO ORDER AND PLEDGE OF ALLEGIANCE
2.ROLL CALL
3.SPECIAL PRESENTATION
a. Renton Special Olympics Athletes Recognition
4.PUBLIC MEETING
a. Sterling Annexation ‐ 10% Notice of Intent to Commence Annexation Proceedings for 36.6
acres located in the vicinity of SE 120th St. and SE 128th St.
5.PUBLIC HEARING
a. Tess Annexation ‐ 60% Petition to Annex for 16.3 acres located in the vicinity of SE 132nd St.
and 160th Ave. SE
6.ADMINISTRATIVE REPORT
7.AUDIENCE COMMENT
(Speakers must sign up prior to the Council meeting. Each speaker is allowed five minutes. The
comment period will be limited to one‐half hour. The second audience comment period later on in
the agenda is unlimited in duration.) When you are recognized by the Presiding Officer, please
walk to the podium and state your name and city of residence for the record, SPELLING YOUR LAST
NAME.
NOTICE to all participants: pursuant to state law, RCW 42.17.130, campaigning for any ballot
measure or candidate from the lectern during any portion of the council meeting, including,
during the audience comment portion of the meeting, is PROHIBITED.
8.CONSENT AGENDA
The following items are distributed to Councilmembers in advance for study and review, and the
recommended actions will be accepted in a single motion. Any item may be removed for further
discussion if requested by a Councilmember.
a. Approval of Council meeting minutes of 6/6/2011 and 6/13/2011. Council concur.
b. Mayor Law reappoints Mark Hancock to the Airport Advisory Committee (Kennydale, alternate)
position for a term expiring on 5/7/2014. Council concur.
c. Community Services Department recommends approval of a golf course fee waiver in the
amount of $11,600 for the Renton, Hazen, Lindbergh, and Liberty High Schools’ 2011 golf
season. Refer to Finance Committee.
Page 1 of 55
d. Utility Systems Division submits CAG‐10‐054, West Hill Reservoir Recoat & Upgrade 2010, and
requests approval of the project, final pay estimate in the amount of $7,845.68,
commencement of a 60‐day lien period, and release of retained amount of $18,331.76 to
Coatings Unlimited, Inc., contractor, if all required releases are obtained. Council concur.
9.UNFINISHED BUSINESS
Topics listed below were discussed in Council committees during the past week. Those topics
marked with an asterisk (*) may include legislation. Committee reports on any topics may be held
by the Chair if further review is necessary.
a. Committee of the Whole: Libraries (Bond Issue & Interlocal Agreement with KCLS)*
b. Finance Committee: Vouchers
10.RESOLUTIONS AND ORDINANCES
Resolution:
a. Interlocal agreement with King County Library System (KCLS) related to construction of two
KCLS libraries in Renton (See 9.a.)
Ordinance for second and final reading:
a. Libraries development limited tax general obligation (LTGO) bonds (1st reading 5/9/2011)
11.NEW BUSINESS
(Includes Council Committee agenda topics; call 425‐430‐6512 for recorded information.)
12.AUDIENCE COMMENT
13.ADJOURNMENT
COMMITTEE OF THE WHOLE AGENDA
(Preceding Council Meeting)
COUNCIL CHAMBERS
June 20, 2011
Monday, 4:30 p.m.
PRO (Parks, Recreation, and Open Space) Plan;
Libraries (Bond Issue and Interlocal Agreement with King County Library System)
• Hearing assistance devices for use in the Council Chambers are available upon request to the City Clerk •
CITY COUNCIL MEETINGS ARE TELEVISED LIVE ON GOVERNMENT ACCESS CHANNEL 21 AND ARE RECABLECAST:
Tues. & Thurs. at 11 AM & 9 PM, Wed. & Fri at 9 AM & 7 PM and Sat. & Sun. at 1 PM & 9 PM
Page 2 of 55
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4a. ‐ Sterling Annexation ‐ 10% Notice of Intent to Commence
Annexation Proceedings for 36.6 acres located in the vicinity of SE 120th
Page 3 of 55
4a. ‐ Sterling Annexation ‐ 10% Notice of Intent to Commence
Annexation Proceedings for 36.6 acres located in the vicinity of SE 120th
Page 4 of 55
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5a. ‐ Tess Annexation ‐ 60% Petition to Annex for 16.3 acres located in
the vicinity of SE 132nd St. and 160th Ave. SE Page 5 of 55
5a. ‐ Tess Annexation ‐ 60% Petition to Annex for 16.3 acres located in
the vicinity of SE 132nd St. and 160th Ave. SE Page 6 of 55
CITY OF RENTON COUNCIL AGENDA BILL
Subject/Title:
Reappointment to Airport Advisory Committee
Meeting:
Regular Council - 20 Jun 2011
Exhibits:
None
Submitting Data: Dept/Div/Board:
Executive
Staff Contact:
Denis Law, Mayor
Recommended Action:
Council Concur
Fiscal Impact:
Expenditure Required: $ N/A Transfer Amendment: $N/A
Amount Budgeted: $ N/A Revenue Generated: $N/A
Total Project Budget: $ N/A City Share Total Project: $ N/A
SUMMARY OF ACTION:
Mayor Law reappoints the following to the Airport Advisory Committee:
Mr. Mark Hancock, 1200 N. 38th Street, Renton WA 98056 (Neighborhood Representative, Kennydale,
alternate position) for a term expiring on 5/7/14.
STAFF RECOMMENDATION:
Concur in Mayor Law's reappointment of Mr. Mark Hancock to the Airport Advisory Committee.
8b. ‐ Mayor Law reappoints Mark Hancock to the Airport Advisory
Committee (Kennydale, alternate) position for a term expiring on
Page 7 of 55
CITY OF RENTON COUNCIL AGENDA BILL
Subject/Title:
High school golf fee waiver
Meeting:
Regular Council - 20 Jun 2011
Exhibits:
High school request letters
Fee waiver request forms
Submitting Data: Dept/Div/Board:
Community Services
Staff Contact:
Kelly Beymer - Ext. 6617
Recommended Action:
Refer to Finance Committee
Fiscal Impact:
Expenditure Required: $ $11,600 approx. Transfer Amendment: $
Amount Budgeted: $ N/A Revenue Generated: $
Total Project Budget: $ City Share Total Project: $
SUMMARY OF ACTION:
Authorize a fee waiver for green fees and driving range fees associated with the Renton, Hazen,
Lindbergh and Liberty high school golf teams. Renton school district and Liberty High School
participate in reciprocal use of facilities with the Community Services Recreation division. Community
service is required of the golf team members to assist with policing the driving range after use,
repairing divots, sand and seeding tee boxes and picking up garbage when on the course.
STAFF RECOMMENDATION:
Authorize Maplewood Golf Course to waive associated fees for Renton, Hazen, Lindbergh and Liberty
high school golf teams for the 2011 Fall season.
8c. ‐ Community Services Department recommends approval of a golf
course fee waiver in the amount of $11,600 for the Renton, Hazen, Page 8 of 55
8c. ‐ Community Services Department recommends approval of a golf
course fee waiver in the amount of $11,600 for the Renton, Hazen, Page 9 of 55
8c. ‐ Community Services Department recommends approval of a golf
course fee waiver in the amount of $11,600 for the Renton, Hazen, Page 10 of 55
H:\golf\manager\Fee Waiver Reduction Request hs fall 2011.doc
CITY OF RENTON
COMMUNITY SERVICES DEPARTMENT
FEE WAIVER OR REDUCTION REQUEST
Fee Waiver and/or Reduction requests will be submitted for approval to the City Council
via the Finance Committee.
Name of Group:Renton, Hazen, Lindbergh and Liberty High School Golf Teams
Group Contact Person: Brian Kaelin/Stark Porter Contact Number:425-204-2423
425-837-4807
Address: See Attached Email Address: brian.kaelin@rentonschools.us
Date of Event:2011 Golf Season (Aug. 22nd – Oct.)Participant # : 48
Location:Maplewood Golf Course
Type of Event:High School Golf – practice and matches
Staff Contact Name/Telephone:Kelly Beymer – 430-6617
What is the total cost of the rental and applicable fees?Approx. $11,600
What is the cost of the fee waiver or reduction requested?$11,600
Describe event and explain reduction or waiver of fees:
To promote golf in the Renton/Issaquah school districts and continue the
relationship between high schools and the Community Services Recreation Dept. i.e.,
inter-local agreement.
In addition, staff coordinates community service involvement with approved teams to
assist the golf course with repairing divots, picking up garbage, and sanding and
seeding of fairways.
Staff Recommendation:Approve fee waiver for the Renton, Hazen, Lindbergh and
Liberty high school golf teams for their 2011 season.
Council Approval
8c. ‐ Community Services Department recommends approval of a golf
course fee waiver in the amount of $11,600 for the Renton, Hazen, Page 11 of 55
H:\golf\manager\Fee Waiver Reduction Request hs fall 2011.doc
cc:
8c. ‐ Community Services Department recommends approval of a golf
course fee waiver in the amount of $11,600 for the Renton, Hazen, Page 12 of 55
CITY OF RENTON COUNCIL AGENDA BILL
Subject/Title:
Final Pay Estimate – CAG-10-054 (WTR-27-3488)
West Hill Reservoir Recoat and Upgrade 2010
Contractor: Coatings Unlimited, Inc.
Meeting:
Regular Council - 20 Jun 2011
Exhibits:
Pay Estimate #9 (Final)
Notice of Completion of Public Works Contract
Submitting Data: Dept/Div/Board:
Public Works
Staff Contact:
Tom Malphrus, x7313
Recommended Action:
Council Concur
Fiscal Impact:
Expenditure Required: $ 7,845.68 Transfer Amendment: $N/A
Amount Budgeted: $ 8,000 Revenue Generated: $N/A
Total Project Budget: $ 508,000 City Share Total Project: $ 100%
SUMMARY OF ACTION:
The construction contract was awarded to Coatings Unlimited, Inc., on June 14, 2010.
Construction started July 23, 2010, and was completed on May 19, 2011. The original contract
amount was $385,303.13 and the final contract amount is $401,465.47. The increase of
$16,162.34 represents an increase for change orders No. 1 and 2 which cover unanticipated
metal fabrication, substitution of light fixtures, addition of an electrical circuit, addition of extra
intrusion switches and addition of caulking to the interior roof plate lap joints.
STAFF RECOMMENDATION:
Accept the project, approve the final pay estimate in the amount of $7,845.68, and release the
retainage in the amount of $18,331.76 after 60 days, subject to the receipt of all required
authorizations.
8d. ‐ Utility Systems Division submits CAG‐10‐054, West Hill Reservoir
Recoat & Upgrade 2010, and requests approval of the project, final pay Page 13 of 55
8d. ‐ Utility Systems Division submits CAG‐10‐054, West Hill Reservoir
Recoat & Upgrade 2010, and requests approval of the project, final pay Page 14 of 55
8d. ‐ Utility Systems Division submits CAG‐10‐054, West Hill Reservoir
Recoat & Upgrade 2010, and requests approval of the project, final pay Page 15 of 55
8d. ‐ Utility Systems Division submits CAG‐10‐054, West Hill Reservoir
Recoat & Upgrade 2010, and requests approval of the project, final pay Page 16 of 55
8d. ‐ Utility Systems Division submits CAG‐10‐054, West Hill Reservoir
Recoat & Upgrade 2010, and requests approval of the project, final pay Page 17 of 55
CITY OF RENTON, WASHINGTON
RESOLUTION NO.
A RESOLUTION OF THE CITY OF RENTON,. WASHINGTON, AUTHORIZING THE
MAYOR AND CITY CLERK TO ENTER INTO AN INTERLOCAL AGREEMENT WITH
THE KING COUNTY LIBRARY SYSTEM RELATED TO CONSTRUCTION OF TWO
KING COUNTY LIBRARY SYSTEM LIBRARIES IN THE CITY OF RENTON.
WHEREAS, the City and the King County Library System ("KCLS") are authorized,
pursuant to RCW Chapter 39.34, to enter into an interlocal government cooperative
agreement; and
WHEREAS, the citizens of the City approved annexation into the KCLS on February 9,
2010; and
WHEREAS, the City and KCLS have discussed and agreed that the City will provide land
and funding for, and KCLS should maintain and operate, two new library facilities in the City of
Renton for the benefit of the citizens of Renton and the surrounding communities (collectively
referred to herein as the "Project"); and
WHEREAS, the City and KCLS contemplate that the Project will include one new library
designed, constructed, staffed and maintained in downtown Renton and another designed,
constructed, staffed and maintained in the Sunset area of Renton; and
WHEREAS, the Project is contingent on the City acquiring title to the properties upon
which the libraries are to be constructed and associated rights-of-way, easements, and or
covenants as may be required; and
WHEREAS, the Project also requires that KCLS manage and oversee the design and
construction of both libraries and also operate and maintain the libraries;
10a. ‐ Interlocal agreement with King County Library System (KCLS)
related to construction of two KCLS libraries in Renton (See 9.a.)Page 18 of 55
RESOLUTION NO.
NOW, THEREFORE, THE CITY COUNCIL OF THE CITY OF RENTON, WASHINGTON, DOES
RESOLVE AS FOLLOWS:
SECTION I. The above recitals are found to be true and correct in all respects.
SECTION II. The Mayor and City Clerk are hereby authorized to enter into an
interlocal agreement with KCLS related to construction of two KCLS libraries in the City of
Renton.
PASSED BY THE CITY COUNCIL this day of 2011.
Bonnie I. Walton, City Clerk
APPROVED BY THE MAYOR this day of , 2011.
Approved as to form:
Lawrence J. Warren, City Attorney
RES.1502:4/27/ll:scr
Denis Law, Mayor
10a. ‐ Interlocal agreement with King County Library System (KCLS)
related to construction of two KCLS libraries in Renton (See 9.a.)Page 19 of 55
isr ,
CITY OF RENTON, WASHINGTON
LIMITED TAX GENERAL OBLIGATION BONDS, SERIES 2011A
ORDINANCE NO.
AN ORDINANCE OF THE CITY OF RENTON, WASHINGTON,
PROVIDING FOR THE ISSUANCE OF LIMITED TAX GENERAL
OBLIGATION BONDS OF THE CITY IN THE PRINCIPAL AMOUNT OF
NOT TO EXCEED $18,000,000 TO FINANCE ALL OR A PORTION OF
THE COSTS OF ACQUIRING LAND FOR AND CONSTRUCTING,
IMPROVING AND EQUIPPING TWO NEW PUBLIC LIBRARY
FACILITIES AND REPAIRING, RENOVATING AND IMPROVING
EXISTING LIBRARY FACILITIES; PROVIDING THE FORM AND
TERMS OF THE BONDS; AND DELEGATING THE AUTHORITY TO
APPROVE THE FINAL TERMS OF THE BONDS.
PASSED: MAY 16JUNE 270, 2011
PREPARED BY:
PACIFICA LAW GROUP LLP
Seattle, Washington
10a. ‐ Libraries development limited tax general obligation (LTGO)
bonds (1st reading 5/9/2011)Page 20 of 55
CITY OF RENTON
ORDINANCE NO.
TABLE OF CONTENTS*
Page
Section 1. Definitions and Interpretation of Terms 2
Section 2. Authorization of the Projects 7
Section 3. Authorization of Bonds and Bond Details 7
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 19
Section 8. Application of Bond Proceeds 20
Section 9. Tax Covenants 21
Section 10. Bond Fund and Provision for Tax Levy Payments 23
Section 11. Defeasance 24
Section 12. Sale of Bonds 25
Section 13. Bond Insurance 27
Section 14. Undertaking to Provide Ongoing Disclosure 282?
Section 15. Lost, Stolen or Destroyed Bonds 32
Section 16. Severability; Ratification 3335
Section 17. Effective Date of Ordinance 33
* This Table of Contents is provided for convenience only and is not a part of this ordinance.
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CITY OF RENTON, WASHINGTON
ORDINANCE NO.
AN ORDINANCE OF THE CITY OF RENTON, WASHINGTON,
PROVIDING FOR THE ISSUANCE OF LIMITED TAX GENERAL
OBLIGATION BONDS OF THE CITY IN THE PRINCIPAL AMOUNT OF
NOT TO EXCEED $18,000,000 TO FINANCE ALL OR A PORTION OF
THE COSTS OF ACQUIRING LAND FOR AND CONSTRUCTING,
IMPROVING AND EQUIPPING TWO NEW PUBLIC LIBRARY
FACILITIES AND REPAIRING, RENOVATING AND IMPROVING
EXISTING LIBRARY FACILITIES; PROVIDING THE FORM AND
TERMS OF THE BONDS; AND DELEGATING THE AUTHORITY TO
APPROVE THE FINAL TERMS OF THE BONDS.
WHEREAS, pursuant to Ordinance No. 5479 of the City Council (the "Council") of the
City of Renton, Washington (the "City"), adopted on August 3, 2009, the City stated its intent
to join the King County Library System ("KCLS") and called for an election to be held within the
City on February 9, 2010; and
WHEREAS, the number and proportion of the qualified electors required by law for the
adoption thereof voted in favor of a proposition authorizing the annexation of the City into the
KCLS; and
WHEREAS, pursuant to the terms of an Interlocal Agreement between the City and
KCLS, the City has agreed to acquire land, finance costs related to the construction of two
public library facilities, and lease the land to KCLS, and KCLS has agreed to own, operate and
maintain the public library facilities under the terms of a long-term lease agreement; and
WHEREAS, the City desires to repair, renovate and improve existing library facilities for
other public uses; and
WHEREAS, it is hereby found to be in the best interest of the City to provide financing
for all or a portion of the costs of acquiring land for and constructing, improving and equipping
10a. ‐ Libraries development limited tax general obligation (LTGO)
bonds (1st reading 5/9/2011)Page 22 of 55
ORDINANCE NO.
two new public library facilities and to use the remaining funds, if available, for repairing,
renovating and improving existing libraries for other public uses (the "Projects"); and
WHEREAS, the City is authorized by chapters 35A.40 and 39.46 RCW to borrow money
and issue general obligation bonds to finance the costs of the Projects; and
WHEREAS, the City now desires to construct the Projects and issue and sell such Limited
Tax General Obligation Bonds by negotiated sale to Seattle-Northwest Securities Corporation,
Seattle, Washington in the principal amount of not to exceed $18,000,000 (the "Bonds") to
finance costs of the Projects;
NOW, THEREFORE, THE CITY COUNCIL OF THE CITY OF RENTON, WASHINGTON DOES
ORDAIN AS FOLLOWS:
Section 1. Definitions and Interpretation of Terms.
(a) Definitions. As used in this ordinance, the following words shall have the
following meanings:
Beneficial Owner means any person that has or shares the power, directly or indirectly
to make investment decisions concerning ownership of any Bonds (including persons holding
Bonds through nominees, depositories or other intermediaries).
Bond Fund means the "City of Renton Limited Tax General Obligation Bond Debt Service
Fund, 2011" authorized to be created pursuant to Section 10 of this ordinance.
Bond Insurance Policy means the municipal bond insurance policy, if any, issued by the
Insurer insuring the payment when due of the principal of and interest on the Bonds as
provided therein.
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bonds (1st reading 5/9/2011)Page 23 of 55
ORDINANCE NO.
Bond Purchase Contract means the contract for the purchase of the Bonds between the
Underwriter and City, executed pursuant to Section 12 of this ordinance.
Bond Register means the registration books showing the name, address and tax
identification number of each Registered Owner of the Bonds, maintained pursuant to
Section 149(a) of the Code.
Bond Registrar means, initially, the fiscal agency of the State of Washington, for the
purposes of registering and authenticating the Bonds, maintaining the Bond Register, effecting
transfer of ownership of the Bonds and paying interest on and principal of the Bonds.
Bond Year means each one-year period that ends on the date selected by the City. The
first and last Bond Years may be short periods. If no day is selected by the City before the
earlier of the final maturity date of the Bonds or the date that is five years after the date of
issuance of the Bonds, Bond Years end on each anniversary of the date of issue and on the final
maturity date of the Bonds.
Bonds mean the City of Renton, Washington Limited Tax General Obligation Bonds,
Series 2011A issued pursuant to this ordinance.
City means the City of Renton, Washington, a municipal corporation duly organized and
existing by virtue of the laws of the State of Washington.
Code means the Internal Revenue Code of 1986, as amended, and shall include all
applicable regulations and rulings relating thereto.
Commission means the Securities and Exchange Commission.
Council means the City Council as the general legislative authority of the City, as the
same shall be duly and regularly constituted from time to time.
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bonds (1st reading 5/9/2011)Page 24 of 55
ORDINANCE NO.
Designated Representative means the Mayor, the Chief Administrative Officer, or the
Finance Director of the City, or any successor to the functions of such office.
DJC means The Depository Trust Company, New York, New York, a limited purpose
trust company organized under the laws of the State of New York, as depository for the Bonds
pursuant to Section 4 of this ordinance.
Federal Tax Certificate means the certificate executed by the Designated
Representative setting forth the requirements of the Code for maintaining the tax exemption
of interest on the bonds.
Finance Director shall mean the City's Finance and Information Services Administrator
or the successor to such officer.
Government Obligations mean those obligations now or hereafter defined as such in
chapter 39.53 RCW.
Insurer means the municipal bond insurance company, if any, selected and designated
by the Designated Representative, pursuant to Section 13 of this ordinance, or any successor
thereto or assignee thereof, as issuer of a Bond Insurance Policy for all or a portion of the
Bonds.
Letter of Representations means the blanket issuer letter of representations from the
City to DTC.
MSRB means the Municipal Securities Rulemaking Board or any successors to its
functions.
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bonds (1st reading 5/9/2011)Page 25 of 55
ORDINANCE NO.
Net Proceeds, when used with reference to the Bonds, mean the principal amount of
the Bonds, plus accrued interest and original issue premium, if any, and less original issue
discount, if any.
Private Person means any natural person engaged in a trade or business or any trust,
estate, partnership, association, company or corporation.
Private Person Use means the use of property in a trade or business by a Private Person
if such use is other than as a member of the general public. Private Person Use includes
ownership of the property by the Private Person as well as other arrangements that transfer to
the Private Person the actual or beneficial use of the property (such as a lease, management or
incentive payment contract or other special arrangement) in such a manner as to set the
Private Person apart from the general public. Use of property as a member of the general
public includes attendance by the Private Person at municipal meetings or business rental of
property to the Private Person on a day-to-day basis if the rental paid by such Private Person is
the same as the rental paid by any Private Person who desires to rent the property. Use of
property by nonprofit community groups or community recreational groups is not treated as
Private Person Use if such use is incidental to the governmental uses of property, the property
is made available for such use by all such community groups on an equal basis and such
community groups are charged only a de minimis fee to cover custodial expenses.
Project Fund means the "Library Construction Fund" as described in Section 8 of this
ordinance.
Projects mean the capital projects described in Section 2 of this ordinance.
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ORDINANCE NO.
Registered Owner means the person named as the registered owner of a Bond in the
Bond Register. For so long as the Bonds are held in book-entry only form, DTC shall be deemed
to be the sole Registered Owner.
Rule means the Commission's Rule 15c2-12 under the Securities Exchange Act of 1934,
as the same may be amended from time to time.
Underwriter means Seattle-Northwest Securities Corporation, Seattle, Washington.
(b) Interpretation. In this ordinance, unless the context otherwise requires:
(1) The terms "hereby," "hereof," "hereto," "herein," "hereunder" and any
similar terms, as used in this ordinance, refer to this ordinance as a whole and not to any
particular article, section, subdivision or clause hereof, and the term "hereafter" shall mean
after, and the term "heretofore" shall mean before, the date of this ordinance;
(2) Words of the masculine gender shall mean and include correlative words
of the feminine and fte^rte^neutral genders and words importing the singular number shall
mean and include the plural number and vice versa;
(3) Words importing persons shall include firms, associations, partnerships
(including limited partnerships), trusts, corporations and other legal entities, including public
bodies, as well as natural persons;
(4) Any headings preceding the text of the several articles and sections of
this ordinance, and any table of contents or marginal notes appended to copies hereof, shall be
solely for convenience of reference and shall not constitute a part of this ordinance, nor shall
they affect its meaning, construction or effect; and
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ORDINANCE NO.
(5) All references herein to "articles," "sections" and other subdivisions or
clauses are to the corresponding articles, sections, subdivisions or clauses hereof.
Section 2. Authorization of the Projects. The Bonds are being issued to finance all
or a portion of the costs of acquiring land for and constructing, improving and equipping two
new public library facilities and to use the remaining funds, if available, for repairing,
renovating and improving existing libraries for other public uses (together, the "Projects"). Any
remaining costs of the Projects shall be paid from other City funds legally available for such
purposes.
If the Council shall determine that it has become impractical to undertake or complete
any portion of the Projects by reason of changed conditions, the City shall not be required to
undertake or complete such portions of the Project. If the Projects have been completed or
duly provided for, or found to be impractical, the Council may apply the Bond proceeds or any
portion thereof to the redemption of the Bonds or to other capital purposes as the Council, in
its discretion, shall determine.
Section 3. Authorization of Bonds and Bond Details. For the purpose of paying the
costs of the Projects and paying costs of issuance of the Bonds, including, but not limited to,
the payment of the premium cost for a Bond Insurance Policy, if any, the City shall issue and
sell its limited tax general obligation bonds in the aggregate principal amount of not to exceed
$18,000,000 (the "Bonds").
The Bonds shall be general obligations of the City, shall be designated "City of Renton,
Washington, Limited Tax General Obligation Bonds, Series 2011A"; shall be dated as of their
date of delivery; shall be fully registered as to both principal and interest; shall be in the
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ORDINANCE NO.
denomination of $5,000 each, or any integral multiple thereof, provided that no Bond shall
represent more than one maturity; shall be numbered separately in such manner and with any
additional designation as the Bond Registrar deems necessary for purposes of identification;
and shall bear interest from their date payable on the first days of each June and December,
commencing on December 1, 2011, at rates set forth in the Bond Purchase Contract; and shall
mature on the dates and in the principal amounts set forth in the Bond Purchase Contract and
as approved by the Designated Representative pursuant to Section 12. The Bonds of any of the
maturities may be combined and issued as term bonds, subject to mandatory redemption as
provided in the Bond Purchase Contract.
Section 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 a bond register to be
maintained by the Bond Registrar. So long as any Bonds remain outstanding, the Bond
Registrar shall make all necessary provisions to permit the exchange or registration or transfer
of Bonds at its principal corporate trust office. The Bond Registrar may be removed at any time
at the option of the Finance Director upon prior notice to the Bond Registrar and a successor
Bond Registrar appointed by the Finance Director. No resignation or removal of the Bond
Registrar shall be effective until a successor shall have been appointed and until the successor
Bond Registrar shall have accepted the duties of the Bond Registrar hereunder. The Bond
Registrar is authorized, on behalf of the City, to authenticate and deliver Bonds transferred or
exchanged in accordance with the provisions of such Bonds and this ordinance and to carry out
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all of the Bond Registrar's powers and duties under this ordinance. The Bond Registrar shall be
responsible for its representations contained in the Certificate of Authentication of the Bonds.
(b) Registered Ownership. The City and the Bond Registrar, each in its discretion,
may deem and treat the Registered Owner of each Bond as the absolute owner thereof for all
purposes (except as provided in Section 14 of this ordinance), 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(h) hereof, but such Bond may be transferred as herein
provided. All such payments made as described in Section 4(h) shall be valid and shall satisfy
and discharge the liability of the City upon such Bond to the extent of the amount or amounts
so paid.
(c) DTC Acceptance/Letters of Representations. The Bonds initially shall be held in
fully immobilized form by DTC acting as depository. To induce DTC to accept the Bonds as
eligible for deposit at DTC, the City has executed and delivered to DTC a Blanket Issuer Letter of
Representations. Neither the City nor the Bond Registrar will have any responsibility or
obligation to DTC participants or the persons for whom they act as nominees (or any successor
depository) with respect to the Bonds in respect of the accuracy of any records maintained by
DTC (or any successor depository) or any DTC participant, the payment by DTC (or any
successor depository) or any DTC participant of any amount in respect of the principal of or
interest on Bonds, any notice which is permitted or required to be given to Registered Owners
under this ordinance (except such notices as shall be required to be given by the City to the
Bond Registrar or to DTC (or any successor depository)), or any consent given or other action
taken by DTC (or any successor depository) as the Registered Owner. For so long as any Bonds
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are held in fully-immobilized form hereunder, DTC or its successor depository shall be deemed
to be the Registered Owner for all purposes hereunder, and all references herein to the
Registered Owners shall mean DTC (or any successor depository) or its nominee and shall not
mean the owners of any beneficial interest in such Bonds.
If any Bond shall be duly presented for payment and funds have not been duly provided
by the City on such applicable date, then interest shall continue to accrue thereafter on the
unpaid principal thereof at the rate stated on such Bond until it is paid.
(d) Use of Depository.
(1) The Bonds shall be registered initially in the name of "Cede & Co.", as
nominee of DTC, with one Bond maturing on each of the maturity dates for the Bonds in a
denomination corresponding to the total principal therein designated to mature on such date.
Registered ownership of such immobilized Bonds, or any portions thereof, may not thereafter
be transferred except (A) to any successor of DTC or its nominee, provided that any such
successor shall be qualified under any applicable laws to provide the service proposed to be
provided by it; (B) to any substitute depository appointed by the Finance Director pursuant to
subsection (2) below or such substitute depository's successor; or (C) to any person as provided
in subsection (4) below.
(2) Upon the resignation of DTC or its successor (or any substitute
depository or its successor) from its functions as depository or a determination by the Finance
Director to discontinue the system of book entry transfers through DTC or its successor (or any
substitute depository or its successor), the Finance Director may hereafter appoint a substitute
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depository. Any such substitute depository shall be qualified under any applicable laws to
provide the services proposed to be provided by it.
(3) In the case of any transfer pursuant to clause (A) or (B) of subsection (1)
above, the Bond Registrar shall, upon receipt of all outstanding Bonds, together with a written
request on behalf of the Finance Director, issue a single new Bond for each maturity then
outstanding, registered in the name of such successor or such substitute depository, or their
nominees, as the case may be, all as specified in such written request of the Finance Director.
(4) In the event that (A) DTC or its successor (or substitute depository or its
successor) resigns from its functions as depository, and no substitute depository can be
obtained, or (B) the Finance Director determines that it is in the best interest of the beneficial
owners of the Bonds that such owners be able to obtain such bonds in the form of Bond
certificates, the ownership of such Bonds may then be transferred to any person or entity as
herein provided, and shall no longer be held in fully-immobilized form. The Finance Director
shall deliver a written request to the Bond Registrar, together with a supply of definitive Bonds,
to issue Bonds as herein provided in any authorized denomination. Upon receipt by the Bond
Registrar of all then outstanding Bonds together with a written request on behalf of the
Finance Director to the Bond Registrar, new Bonds shall be issued in the appropriate
denominations and registered in the names of such persons as are requested in such written
request.
(e) Registration of Transfer of Ownership or Exchange; Change in Denominations.
The transfer of any Bond may be registered and Bonds may be exchanged, but no transfer of
any such Bond shall be valid unless it is surrendered to the Bond Registrar with the assignment
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form appearing on such Bond duly executed by the Registered Owner or such Registered
Owner's duly authorized agent in a manner satisfactory to the Bond Registrar. Upon such
surrender, the Bond Registrar shall cancel the surrendered Bond and shall authenticate and
deliver, without charge to the Registered Owner or transferee therefor, a new Bond (or Bonds
at the option of the new Registered Owner) of the same date, maturity and interest rate and
for the same aggregate principal amount in any authorized denomination, naming as
Registered Owner the person or persons listed as the assignee on the assignment form
appearing on the surrendered Bond, in exchange for such surrendered and cancelled Bond.
Any Bond may be surrendered to the Bond Registrar and exchanged, without charge, for an
equal aggregate principal amount of Bonds of the same date, maturity and interest rate, in any
authorized denomination. The Bond Registrar shall not be obligated to register the transfer or
to exchange any Bond during the 15 days preceding any interest payment or principal payment
date any such Bond is to be redeemed.
(f) Bond Registrar's Ownership of Bonds. The Bond Registrar may become the
Registered Owner of any Bond with the same rights it would have if it were not the Bond
Registrar, and to the extent permitted by law, may act as depository for and permit any of its
officers or directors to act as a member of, or in any other capacity with respect to, any
committee formed to protect the right of the Registered Owners of Bonds.
(g) Registration Covenant. The City covenants that, until all Bonds have been
surrendered and canceled, it will maintain a system for recording the ownership of each Bond
that complies with the provisions of Section 149 of the Code.
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(h) Place and Medium of Payment. Both principal of and interest on the Bonds shall
be payable in lawful money of the United States of America. Interest on the Bonds shall be
calculated on the basis of a year of 360 days and twelve 30-day months. For so long as all
Bonds are in fully immobilized form, payments of principal and interest thereon shall be made
as provided in accordance with the operational arrangements of DTC referred to in the Letter
of Representations. In the event that the Bonds are no longer in fully immobilized form,
interest on the Bonds shall be paid by check or draft mailed to the Registered Owners at the
addresses for such Registered Owners appearing on the Bond Register on the fifteenth day of
the month preceding the interest payment date, or upon the written request of a Registered
Owner of more than $1,000,000 of Bonds (received by the Bond Registrar at least 15 days prior
to the applicable payment date), such payment shall be made by the Bond Registrar by wire
transfer to the account within the United States designated by the Registered Owner. Principal
of the Bonds shall be payable upon presentation and surrender of such Bonds by the
Registered Owners at the principal office of the Bond Registrar.
Section 5. Redemption Prior to Maturity and Purchase of Bonds.
(a) Mandatory Redemption of Term Bonds and Optional Redemption, if any. The
Bonds shall be subject to optional redemption on the dates, at the prices and under the terms
set forth in the Bond Purchase Contract approved by the Designated Representative pursuant
to Section 12 of this ordinance. The Bonds shall be subject to mandatory redemption to the
extent, if any, set forth in the Bond Purchase Contract and as approved by the Designated
Representative pursuant to Section 12 of this ordinance.
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(b) Purchase of Bonds. The City reserves the right to purchase any of the Bonds
offered to it at anytime at a price deemed reasonable by the Designated Representative.
(c) Selection of Bonds for Redemption. For as long as the Bonds are held in
book-entry only form, the selection of particular Bonds within a maturity to be redeemed shall
be made in accordance with the operational arrangements then in effect at DTC. If the Bonds
are no longer held in uncertificated form, the selection of such Bonds to be redeemed and the
surrender and reissuance thereof, as applicable, shall be made as provided in the following
provisions of this subsection (c). If the City redeems at any one time fewer than all of the
Bonds having the same maturity date, the particular Bonds or portions of Bonds of such
maturity to be redeemed shall be selected by lot (or in such manner determined by the Bond
Registrar) in increments of $5,000. In the case of a Bond of a denomination greater than
$5,000, the City and the Bond Registrar shall treat each Bond as representing such number of
separate Bonds each of the denomination of $5,000 as is obtained by dividing the actual
principal amount of such Bond by $5,000. In the event that only a portion of the principal sum
of a Bond is redeemed, upon surrender of such Bond at the principal office of the Bond
Registrar there shall be issued to the Registered Owner, without charge therefor, for the then
unredeemed balance of the principal sum thereof, at the option of the Registered Owner, a
Bond or Bonds of like maturity and interest rate in any of the denominations herein
authorized.
(d) Notice of Redemption.
(1) Official Notice. For so long as the Bonds are held in uncertificated form,
notice of redemption (which notice may be conditional) shall be given in accordance with the
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operational arrangements of DTC as then in effect, and neither the City nor the Bond Registrar
will provide any notice of redemption to any Beneficial Owners. Thereafter (if the Bonds are
no longer held in uncertificated form), notice of redemption shall be given in the manner
hereinafter provided. Unless waived by any owner of Bonds to be redeemed, official notice of
any such redemption (which redemption may be conditioned by the Bond Registrar on the
receipt of sufficient funds for redemption or otherwise) shall be given by the Bond Registrar on
behalf of the City by mailing a copy of an official redemption notice by first class mail at least
20 days and not more than 60 days prior to the date fixed for redemption to the Registered
Owner of the Bond or Bonds to be redeemed at the address shown on the Register or at such
other address as is furnished in writing by such Registered Owner to the Bond Registrar.
All official notices of redemption shall be dated and shall state:
(A) the redemption date,
(B) the redemption price,
(C) if fewer than all outstanding Bonds are to be redeemed, the
identification by maturity (and, in the case of partial redemption, the respective principal
amounts) of the Bonds to be redeemed,
(D) that on the redemption date the redemption price will become
due and payable upon each such Bond or portion thereof called for redemption, and that
interest thereon shall cease to accrue from and after said date, and
(E) the place where such Bonds are to be surrendered for payment of
the redemption price, which place of payment shall be the principal office of the Bond
Registrar.
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On or prior to any redemption date, the City shall deposit with the Bond Registrar an
amount of money sufficient to pay the redemption price of all the Bonds or portions of Bonds
which are to be redeemed on that date.
(2) Effect of Notice; Bonds Due. If an unconditional notice of redemption
has been given as aforesaid, the Bonds or portions of Bonds so to be redeemed shall, on the
redemption date, become due and payable at the redemption price therein specified, and from
and after such date such Bonds or portions of Bonds shall cease to bear interest. Upon
surrender of such Bonds for redemption in accordance with said notice, such Bonds shall be
paid by the Bond Registrar at the redemption price. Installments of interest due on or prior to
the redemption date shall be payable as herein provided for payment of interest. All Bonds
which have been redeemed shall be canceled by the Bond Registrar and shall not be reissued.
(3) Additional Notice. In addition to the foregoing notice, further notice
shall be given by the City as set out below, but no defect in said further notice nor any failure
to give all or any portion of such further notice shall in any manner defeat the effectiveness of
a call for redemption if notice thereof is given as above prescribed. Each further notice of
redemption given hereunder shall contain the information required above for an official notice
of redemption plus (A) the CUSIP numbers of all Bonds being redeemed; (B) the date of issue of
the Bonds as originally issued; (C)the rate of interest borne by each Bond being redeemed;
(D) the maturity date of each Bond being redeemed; and (E) any other descriptive information
needed to identify accurately the Bonds being redeemed. Each further notice of redemption
may be sent at least 20 days before the redemption date to each party entitled to receive
notice pursuant to Section 14 and to the Underwriter and with such additional information as
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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 following form:
[STATEMENT OF INSURANCE]
UNITED STATES OF AMERICA
NO. $
STATE OF WASHINGTON
CITY OF RENTON
LIMITED TAX GENERAL OBLIGATION BOND, SERIES 2011A
INTEREST RATE: % MATURITY DATE: CUSIP NO.:
REGISTERED OWNER: CEDE & CO.
PRINCIPAL AMOUNT:
The City of Renton, Washington (the "City"), hereby acknowledges itself to owe and for
value received promises to pay to the Registered Owner identified above, or registered assigns,
on the Maturity Date identified above, the Principal Amount indicated above and to pay
interest thereon from , 2011, or the most recent date to which interest has been
paid or duly provided for until payment of this bond at the Interest Rate set forth above,
payable on December 1, 2011, and semiannually thereafter on the first days of each
succeeding June and December. Both principal of and interest on this bond are payable in
lawful money of the United States of America. The fiscal agency of the State of Washington
has been appointed by the City as the authenticating agent, paying agent and registrar for the
bonds of this issue (the "Bond Registrar"). For so long as the bonds of this issue are held in
fully immobilized form, payments of principal and interest thereon shall be made as provided
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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 May 2June 270, 2011 (the "Bond Ordinance"). Capitalized
terms used in this bond have the meanings given such terms in the Bond Ordinance.
This bond shall not be valid or become obligatory for any purpose or be entitled to any
security or benefit under the Bond Ordinance until the Certificate of Authentication hereon
shall have been manually signed by or on behalf of the Bond Registrar or its duly designated
agent.
This bond is one of an authorized issue of bonds of like date, tenor, rate of interest and
date of maturity, except as to number and amount in the aggregate principal amount of
$ and is issued pursuant to the Bond Ordinance to provide funds (a) to pay all or a
portion of the cost of acquiring land for and constructing, improving and equipping two new
public library facilities, and repairing, renovating and improving existing libraries for other
public uses and (b) to pay costs of issuance.
The bonds of this issue are subject to redemption as provided in the Bond Ordinance
and the Bond Purchase Contract.
The City hereby irrevocably covenants and agrees with the owner of this bond that it
will include in its annual budget and levy taxes annually, within and as a part of the tax levy
permitted to the City without a vote of the electorate, upon all the property subject to taxation
in amounts sufficient, together with other money legally available therefor, to pay the principal
of and interest on this bond as the same shall become due. The full faith, credit and resources
of the City are hereby irrevocably pledged for the annual levy and collection of such taxes and
the prompt payment of such principal and interest.
The bonds of this issue have not been designated by the City as "qualified tax-exempt
obligations" for investment by financial institutions under Section 265(b) of the Code.
The pledge of tax levies for payment of principal of and interest on the bonds may be
discharged prior to maturity of the bonds by making provision for the payment thereof on the
terms and conditions set forth in the Bond Ordinance.
It is hereby certified that all acts, conditions and things required by the Constitution and
statutes of the State of Washington to exist, to have happened, been done and performed
precedent to and in the issuance of this bond have happened, been done and performed and
that the issuance of this bond and the bonds of this issue does not violate any constitutional,
statutory or other limitation upon the amount of bonded indebtedness that the City may incur.
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IN WITNESS WHEREOF, the City of Renton, Washington has caused this bond to be
executed by the manual or facsimile signatures of the Mayor and the City Clerk and the seal of
the City imprinted, impressed or otherwise reproduced hereon as of this day of
, 2011.
[SEAL]
CITY OF RENTON, WASHINGTON
By /s/manual or facsimile
Mayor
ATTEST:
/s/ manual or facsimile
City Clerk
The Bond Registrar's Certificate of Authentication on the Bonds shall be in substantially
the following form:
CERTIFICATE OF AUTHENTICATION
This bond is one of the bonds described in the within-mentioned Bond Ordinance and is
one of the Limited Tax General Obligation Bonds, Series 2011A of the City of Renton,
Washington, dated , 2011.
WASHINGTON STATE FISCAL AGENCY, as
Bond Registrar
By
Section 7. Execution of Bonds. The Bonds shall be executed on behalf of the City
with the manual or facsimile signatures of the Mayor and City Clerk of the City and the seal of
the City shall be impressed, imprinted or otherwise reproduced thereon.
Only such Bonds as shall bear thereon a Certificate of Authentication in the form
hereinbefore recited, manually executed by the Bond Registrar, shall be valid or obligatory for
any purpose or entitled to the benefits of this ordinance. Such Certificate of Authentication
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shall be conclusive evidence that the Bonds so authenticated have been duly executed,
authenticated and delivered hereunder and are entitled to the benefits of this ordinance.
In case either of the officers who shall have executed the Bonds shall cease to be an
officer or officers of the City before the Bonds so signed shall have been authenticated or
delivered by the Bond Registrar, or issued by the City, such Bonds may nevertheless be
authenticated, delivered and issued and upon such authentication, delivery and issuance, shall
be as binding upon the City as though those who signed the same had continued to be such
officers of the City. Any Bond may be signed and attested on behalf of the City by such persons
who at the date of the actual execution of such Bond, are the proper officers of the City,
although at the original date of such Bond any such person shall not have been such officer of
the City.
Section 8. Application of Bond Proceeds. The City shall establish a fund designated
the "Library Construction Fund" (the "Project Fund") into which the proceeds of the Bonds
(other than accrued interest, if any) shall be deposited. Money in the Project Fund shall be
used to pay the costs of the Projects and costs of issuance of the Bonds. The Finance Director
may invest money in the Project Fund in legal investments for City funds. Earnings on such
investments shall accrue to the benefit of the Project Fund. Any part of the proceeds of the
Bonds remaining in the Project Fund after all costs of the Projects have been paid (including
costs of issuance) may be used for capital purposes of the City in accordance with the Federal
Tax Certificate or may be transferred to the Bond Fund, after consultation with bond counsel
to the City.
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Section 9. Tax Covenants. The City covenants that it will not take or permit to be
taken on its behalf any action that would adversely affect the exemption from federal income
taxation of the interest on the Bonds and will take or require to be taken such acts as may
reasonably be within its ability and as may from time to time be required under applicable law
to continue the exemption from federal income taxation of the interest on the Bonds.
(a) Arbitrage Covenant. Without limiting the generality of the foregoing, the City
covenants that it will not take any action or fail to take any action with respect to the proceeds
of the sale of the Bonds or any other funds of the City which may be deemed to be proceeds of
the Bonds pursuant to Section 148 of the Code and the regulations promulgated thereunder
which, if such use had been reasonably expected on the dates of delivery of the Bonds to the
initial purchasers thereof, would have caused the Bonds to be treated as "arbitrage bonds"
within the meaning of such term as used in Section 148 of the Code.
The City represents that it has not been notified of any listing or proposed listing by the
Internal Revenue Service to the effect that it is an issuer whose arbitrage certifications may not
be relied upon. The City will comply with the requirements of Section 148 of the Code and the
applicable regulations thereunder throughout the term of the Bonds.
(b) Private Person Use Limitation for Bonds. The City covenants that for as long as
the Bonds are outstanding, it will not permit:
(1) More than 10% of the Net Proceeds of the Bonds to be allocated to any
Private Person Use; and
(2) More than 10% of the principal or interest payments on the Bonds in a
Bond Year to be directly or indirectly: (A) secured by any interest in property used or to be
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used for any Private Person Use or secured by payments in respect of property used or to be
used for any Private Person Use, or (B) derived from payments (whether or not made to the
City) in respect of property, or borrowed money, used or to be used for any Private Person Use.
The City further covenants that, if:
(3) More than five percent of the Net Proceeds of the Bonds are allocable to
any Private Person Use; and
(4) More than five percent of the principal or interest payments on the
Bonds in a Bond Year are (under the terms of this ordinance or any underlying arrangement)
directly or indirectly:
(A) secured by any interest in property used or to be used for any
Private Person Use or secured by payments in respect of property used or to be used for any
Private Person Use, or
(B) derived from payments (whether or not made to the City) in
respect of property, or borrowed money, used or to be used for any Private Person Use, then,
(i) any Private Person Use of the Projects described in subsection (3) hereof or Private Person
Use payments described in subsection (4) hereof that is in excess of the five percent limitations
described in such subsections (3) or (4) will be for a Private Person Use that is related to the
state or local governmental use of the Projects funded by the proceeds of the Bonds, and
(ii) any Private Person Use will not exceed the amount of Net Proceeds of the Bonds allocable
to the state or local governmental use portion of the Projects to which the Private Person Use
of such portion of the Projects funded by the proceeds of the Bonds relate. The City further
covenants that it will comply with any limitations on the use of the Projects funded by the
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proceeds of the Bonds by other than state and local governmental users that are necessary, in
the opinion of its bond counsel, to preserve the tax exemption of the interest on the Bonds.
The covenants of this section are specified solely to assure the continued exemption from
regular income taxation of the interest on the Bonds.
(c) Modification of Tax Covenants. The covenants of this section are specified solely
to assure the continued exemption from regular income taxation of the interest on the Bonds.
To that end, the provisions of this section may be modified or eliminated without any
requirement for formal amendment thereof upon receipt of an opinion of the City's bond
counsel that such modification or elimination will not adversely affect the tax exemption of
interest on any Bonds.
(d) No Designation under Section 265(b). The City has not designated the Bonds as
"qualified tax-exempt obligations" under Section 265(b)(3) of the Code for investment by
financial institutions.
Section 10. Bond Fund and Provision for Tax Levy Payments. The City hereby
authorizes the creation of a fund to be used for the payment of debt service on the Bonds,
designated as the "City of Renton Limited Tax General Obligation Bond Debt Service Fund,
2011" (the "Bond Fund"). No later than the date each payment of principal of and/or interest
on the Bonds becomes due and payable, the City shall transmit sufficient funds, from the Bond
Fund or from other legally available sources to the Bond Registrar for the payment of such
principal and/or interest. Money in the Bond Fund not needed to pay the interest or principal
next coming due may be invested in legal investments for City funds.
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The City hereby irrevocably covenants and agrees for as long as any of the Bonds are
outstanding and unpaid that each year it will include in its budget and levy an ad valorem tax
upon all the property within the City subject to taxation in an amount that will be sufficient,
together with all other revenues and money of the City legally available for such purposes, to
pay the principal of and interest on the Bonds when due.
The City hereby irrevocably pledges that the annual tax provided for herein to be levied
for the payment of such principal and interest shall be within and as a part of the tax levy
permitted to cities without a vote of the people, and that a sufficient portion of each annual
levy to be levied and collected by the City prior to the full payment of the principal of and
interest on the Bonds will be and is hereby irrevocably set aside, pledged and appropriated for
the payment of the principal of and interest on the Bonds. The full faith, credit and resources
of the City are hereby irrevocably pledged for the annual levy and collection of said taxes and
for the prompt payment of the principal of and interest on the Bonds when due.
Section 11. Defeasance. In the event that the City, to effect the payment,
retirement or redemption of any Bond, sets aside in the Bond Fund or in another special
account, cash or noncallable Government Obligations, or any combination of cash and/or
noncallable Government Obligations, in amounts and maturities which, together with the
known earned income therefrom, are sufficient to redeem or pay and retire such Bond in
accordance with its terms and to pay when due the interest and redemption premium, if any,
thereon, and such cash and/or noncallable Government Obligations are irrevocably set aside
and pledged for such purpose, then no further payments need be made into the Bond Fund for
the payment of the principal of and interest on such Bond. The owner of a Bond so provided
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for shall cease to be entitled to any lien, benefit or security of this ordinance except the right to
receive payment of principal, premium, if any, and interest from the Bond Fund or such special
account, and such Bond shall be deemed to be not outstanding under this ordinance.
The City shall give written notice of defeasance to the owners of all Bonds so provided
for within 30 days of the defeasance and to each party entitled to receive notice in accordance
with Section 14 of this ordinance.
Section 12. Sale of Bonds.
(a) Bond Sale. The Bonds shall be sold at negotiated sale to the Underwriter
pursuant to the terms of the Bond Purchase Contract. The Underwriter has advised the
Council that market conditions are fluctuating and, as a result, the most favorable market
conditions may occur on a day other than a regular meeting date of the Council. The Council
has determined that it would be in the best interest of the City to delegate to the Designated
Representative for a limited time the authority to approve the final interest rates, aggregate
principal amount, principal amounts of each maturity of the Bonds and redemption rights. The
Designated Representative is hereby authorized to approve the final interest rates, aggregate
principal amount, principal maturities and redemption rights for the Bonds in the manner
provided hereafter so long as (a) the aggregate principal amount of the Bonds does not exceed
$18,000,000, (b) the final maturity date for the Bonds is no later than December 1, 2031,
(c) the Bonds are sold (in the aggregate) at a price not less than 95% and not greater than
110%, and (d) the true interest cost for the Bonds (in the aggregate) does not exceed 4.00%.
In determining whether or not to acquire a Bond Insurance Policy and determining the
final interest rates, aggregate principal amounts, principal maturities and redemption rights,
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the Designated Representative shall take into account those factors that, in his or her
judgment, will result in the lowest true interest cost on the Bonds to their maturity, including,
but not limited to current financial market conditions and current interest rates for obligations
comparable in tenor and quality to the Bonds. Subject to the terms and conditions set forth in
this Section 12, the Designated Representative is hereby authorized to execute the Bond
Purchase Contract. The signature of one of the listed Designated Representatives shall be
sufficient. Following the execution of the Bond Purchase Contract, the Designated
Representative or the Finance Director shall provide a report to the Council, describing the
final terms of the Bonds approved pursuant to the authority delegated in this section. The
authority granted to the Designated Representative by this Section 12 shall expire 120 days
after the effective date of this ordinance. If a Bond Purchase Contract for the Bonds has not
been executed within 120 days after the effective date of this ordinance, the authorization for
the issuance of the Bonds shall be rescinded, and the Bonds shall not be issued nor their sale
approved unless such Bonds shall have been re-authorized by ordinance of the Council. The
ordinance re-authorizing the issuance and sale of such Bonds may be in the form of a new
ordinance repealing this ordinance in whole or in part or may be in the form of an amendatory
ordinance approving a bond purchase contract or establishing terms and conditions for the
authority delegated under this Section 12.
(b) Delivery of Bonds; Documentation. Upon the passage and approval of this
ordinance, the proper officials of the City including the Designated Representative, are
authorized and directed to undertake all action necessary for the prompt execution and
delivery of the Bonds to the Underwriter thereof and further to execute all closing certificates
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and documents required to effect the closing and delivery of the Bonds in accordance with the
terms of the Bond Purchase Contract.
(c) Preliminary and Final Official Statements. The Finance Director is hereby
authorized to ratify and to deem final the preliminary Official Statement relating to the Bonds
for the purposes of the Rule. The Finance Director is further authorized to ratify and to
approve for purposes of the Rule, on behalf of the City, the Official Statement relating to the
issuance and sale of the Bonds and the distribution of the Official Statement pursuant thereto
with such changes, if any, as may be deemed by her to be appropriate.
Section 13. Bond Insurance. The Finance Director is hereby further authorized to
solicit proposals from municipal bond insurance companies for the issuance of a Bond
Insurance Policy. In the event that the Finance Director receives multiple proposals, the
Finance Director may select the proposal having the lowest cost and resulting in an overall
lower interest cost with respect to the Bonds. The Finance Director may execute a
commitment received from the Insurer selected by the Finance Director. The Council further
authorizes and directs all proper officers, agents, attorneys and employees of the City to
cooperate with the Insurer in preparing such additional agreements, certificates, and other
documentation on behalf of the City as shall be necessary or advisable in providing for the
Bond Insurance Policy.
Section 14. Undertaking to Provide Ongoing Disclosure.
(a) Contract/Undertaking. This section constitutes the City's written undertaking
for the benefit of the owners, including Beneficial Owners, of the Bonds as required by
Section (b)(5) of the Rule.
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(b) Financial Statements/Operating Data. The City agrees to provide or cause to be
provided to the Municipal Securities Rulemaking Board ("MSRB"), the following annual
financial information and operating data for the prior fiscal year (commencing in 2011 for the
fiscal year ended December 31, 2010):
1. Annual financial statements, which statements may or may not be
audited, showing ending fund balances for the City's general fund prepared in accordance with
the Budgeting Accounting and Reporting System prescribed by the Washington State Auditor
pursuant to RCW 43.09.200 (or any successor statute) and generally of the type included in the
official statement for the Bonds under the heading "General Fund Comparative Statement of
Revenues, Expenditures and Changes in Fund Balance";
2. The assessed valuation of taxable property in the City;
3. Ad valorem taxes due and percentage of taxes collected;
4. Property tax levy rate per $1,000 of assessed valuation; and
5. Outstanding general obligation debt of the City.
Items 2-5 shall be required only to the extent that such information is not included in the
annual financial statements.
The information and data described above shall be provided on or before nine months
after the end of the City's fiscal year. The City's current fiscal year ends December 31. The City
may adjust such fiscal year by providing written notice of the change of fiscal year to the MSRB.
In lieu of providing such annual financial information and operating data, the City may
cross-reference to other documents available to the public on the MSRB's internet website or
filed with the Commission.
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If not provided as part of the annual financial information discussed above, the City
shall provide the City's audited annual financial statement prepared in accordance with the
Budgeting Accounting and Reporting System prescribed by the Washington State Auditor
pursuant to RCW 43.09.200 (or any successor statute) when and if available to the MSRB.
(c) Listed Events. The City agrees to provide or cause to be provided to the MSRB,
in a timely manner not in excess often business days after the occurrence of the event, notice
of the occurrence of any of the following events with respect to the Bonds:
1. Principal and interest payment delinquencies;
2. Non-payment related defaults, if material;
3. Unscheduled draws on debt service reserves reflecting financial
difficulties;
4. Unscheduled draws on credit enhancements reflecting financial
difficulties;
5. Substitution of credit or liquidity providers, or their failure to perform;
6. Adverse tax opinions, the issuance by the Internal Revenue Service of
proposed or final determinations of taxability, Notices of Proposed Issue
(IRS Form 5701-TEB) or other material notices or determinations with
respect to the tax status of the Bonds, or other material events affecting
the tax status of the Bonds;
7. Modifications to the rights of Bondholders, if material;
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8. Optional, contingent or unscheduled Bond calls other than scheduled
sinking fund redemptions for which notice is given pursuant to Exchange
Act Release 34-23856, if material, and tender offers;
9. Defeasances;
10. Release, substitution, or sale of property securing repayment of the
Bonds, if material;
11. Rating changes;
12. Bankruptcy, insolvency, receivership or similar event of the City;
13. The consummation of a merger, consolidation, or acquisition involving
the City or the sale of all or substantially all of the assets of the City,
other than in the ordinary course of business, the entry into a definitive
agreement to undertake such an action or the termination of a definitive
agreement relating to any such actions, other than pursuant to its terms,
if material; and
14. Appointment of a successor or additional trustee or the change of name
of a trustee, if material.
The City shall promptly determine whether the events described above are material.
(d) Format for Filings with the MSRB. All notices, financial information and
operating data required by this undertaking to be provided to the MSRB must be in an
electronic format as prescribed by the MSRB. All documents provided to the MSRB pursuant to
this undertaking must be accompanied by identifying information as prescribed by the MSRB.
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(e) Notification Upon Failure to Provide Financial Data. The City agrees to provide
or cause to be provided, in a timely manner, to the MSRB notice of its failure to provide the
annual financial information described in Subsection (b) above on or prior to the date set forth
in Subsection (b) above.
(f) Termination/Modification. The City's obligations to provide annual financial
information and notices of certain listed events shall terminate upon the legal defeasance,
prior redemption or payment in full of all of the Bonds. Any provision of this section shall be
null and void if the City (1) obtains an opinion of nationally recognized bond counsel to the
effect that the portion of the Rule that requires that provision is invalid, has been repealed
retroactively or otherwise does not apply to the Bonds and (2) notifies the MSRB of such
opinion and the cancellation of this section.
The City may amend this section with an opinion of nationally recognized bond counsel
in accordance with the Rule. In the event of any amendment of this section, the City shall
describe such amendment in the next annual report, and shall include a narrative explanation
of the reason for the amendment and its impact on the type (or in the case of a change of
accounting principles, on the presentation) of financial information or operating data being
presented by the City. In addition, if the amendment relates to the accounting principles to be
followed in preparing financial statements, (A) notice of such change shall be given in the same
manner as for a listed event under Subsection (c), and (B) the annual report for the year in
which the change is made shall present a comparison (in narrative form and also, if feasible, in
quantitative form) between the financial statements as prepared on the basis of the new
accounting principles and those prepared on the basis of the former accounting principles.
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(g) Bond Owner's Remedies Under This Section. The right of any bondowner or
Beneficial Owner of Bonds to enforce the provisions of this section shall be limited to a right to
obtain specific enforcement of the City's obligations under this section, and any failure by the
City to comply with the provisions of this undertaking shall not be an event of default with
respect to the Bonds.
(h) No Default. Except as otherwise disclosed in the City's official statement relating
to the Bonds, the City is not and has not been in default in the performance of its obligations of
any prior undertaking for ongoing disclosure with respect to its obligations.
Section 15. Lost, Stolen or Destroyed Bonds. In case any Bond or Bonds shall be lost,
stolen or destroyed, the Bond Registrar may execute and deliver a new Bond or Bonds of like
date, number and tenor to the Registered Owner thereof upon the Registered Owner's paying
the expenses and charges of the City and the Bond Registrar in connection therewith and upon
his/her filing with the City evidence satisfactory to the City that such Bond was actually lost,
stolen or destroyed and of his/her ownership thereof, and upon furnishing the City and/or the
Bond Registrar with indemnity satisfactory to the City and the Bond Registrar.
Section 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
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authority granted in this ordinance but prior to its effective date are hereby ratified and
confirmed.
Section 11. Effective Date of Ordinance. This ordinance shall be effective upon its
passage, approval, and thirty (30) days after publication.
PASSED BY THE CITY COUNCIL this l€th-270th day ofMayJune, 2011.
Bonnie I. Walton, City Clerk
APPROVED BY THE MAYOR this l£*h-270th day ofMayJune, 2011.
Denis Law, Mayor
Approved as to form:
Deanna Gregory
Pacifica Law Group LLP
Bond Counsel
Date of Publication:
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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. That the attached Ordinance is a true and correct copy of Ordinance No.
of the City Council (the "Ordinance"), duly passed at a regular meeting thereof held on the 46*
270th day of MayJune, 2011.
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 City Council voted in the proper manner for the passage of the Ordinance; that
all other requirements and proceedings incident to the proper passage of the Ordinance have
been duly fulfilled, carried out and otherwise observed; and that I am authorized to execute
this certificate.
IN WITNESS WHEREOF, I have hereunto set my hand this -!S*fr-270th day of MayJune,
2011.
Bonnie I. Walton, City Clerk
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