HomeMy WebLinkAboutCouncil 03/15/2010AGENDA
RENTON CITY COUNCIL
REGULAR MEETING
March 15, 2010
Monday, 7 p.m.
1.CALL TO ORDER AND PLEDGE OF ALLEGIANCE
2.ROLL CALL
3.SPECIAL PRESENTATION
a. Special Populations Basketball Team Recognition
4.ADMINISTRATIVE REPORT
5.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.
6.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 3/8/2010. Council concur.
b. Mayor Law appoints Michael O'Halloran to the Planning Commission for an unexpired term
expiring 6/30/2011 (position previously held by Shawn Duffee).
Refer to Community Services Committee.
c. Finance and Information Services Department recommends approval of the proposed revisions
to the Purchasing (Bidding and Contracting Requirements) Policy, #250‐02.
Refer to Finance Committee.
d. Finance and Information Services Department recommends approval to reduce Smurfitt‐Stone
Container Corporation's Chapter 11 bankruptcy claim to a $10,000 cash settlement, and to
write off $73,798.97 as uncollectible bad debt.
Refer to Finance Committee.
e. Finance and Information Services Department recommends adopting the amended 2010 Fee
Schedule to incorporate changes to Fire and Emergency Services fees.
Refer to Finance Committee.
f. Finance and Information Services Department requests approval of an ordinance authorizing
the issuance of bonds in the amount of approximately $6.15 million to refinance Limited Tax
General Obligation Bonds issued in 2001 for the development of the City Center Parking
Garage at a savings of approximately $500,000 over the next 11.5 years.
Refer to Finance Committee.
g. Finance and Information Services Department recommends approval of resolution offering an
incentive to the first telecom company and/or other enterprise to construct a Fiber to the
Page 1 of 138
Premises (FTTP) network, and can provide services at competitive rates.
Refer to Finance Committee.
h. Police Department requests authorization to hire a lateral police officer at Step D of the salary
range, effective 4/1/2010. Council concur.
i. Transportation Systems Division recommends approval of an amendment to CAG‐08‐149, with
the Washington State Department of Transportation, to accept additional reimbursement of
$50,050 for a Renton Project Coordinator for the I‐405/I‐5 to SR 169 Stage 2 ‐ Widening
project. Council concur.
j. Transportation Systems Division recommends approval of an addendum to airport lease LAG‐
03‐002, with AirO, Inc., to increase the total ground lease rate by $6,886 annually through
10/31/2012, and to readjust the rate thereafter using the CPI index. Council concur.
7.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. Finance Committee: CROPWALK Fee Waiver Request; Liberty High School Golf Team Fee
Waiver Request; 2010 Group Health Contracts; 200 Mill Building Energy Efficiency Contract
8.RESOLUTIONS AND ORDINANCES
Ordinances for second and final reading:
a. Add new chapter to Title VI (Police Regulations), Chapter 6‐30, entitled "Expulsion from
City Parks" (1st reading 3/1/2010)
9.NEW BUSINESS
(Includes Council Committee agenda topics; call 425‐430‐6512 for recorded information.)
10.AUDIENCE COMMENT
11.ADJOURNMENT
COMMITTEE OF THE WHOLE
AGENDA
(Preceding Council Meeting)
7TH FLOOR CONFERENCING CENTER
March 15, 2010
Monday, 6:30 p.m.
2010 State Legislative Agenda Briefing
• Hearing assistance devices for use in the Council Chambers are available upon request to the City Clerk •
CITY COUNCIL MEETINGS ARE TELEVISED LIVE ON GOVERNMENT ACCESS CHANNEL 21 AND ARE RECABLECAST:
Tues. & Thurs. at 11 AM & 9 PM, Wed. & Fri at 9 AM & 7 PM and Sat. & Sun. at 1 PM & 9 PM
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CITY OF RENTON COUNCIL AGENDA BILL
Subject/Title:
Planning Commission Appointment - Michael
O'Halloran
Meeting:
Regular Council - 15 Mar 2010
Exhibits:
Community Service Application
Submitting Data: Dept/Div/Board:
Executive
Staff Contact:
Denis Law
Recommended Action:
Refer to Community Services Committee
Fiscal Impact:
Expenditure Required: $ N/A Transfer Amendment: $N/A
Amount Budgeted: $ N/A Revenue Generated: $N/A
Total Project Budget: $ N/A City Share Total Project: $ N/A
SUMMARY OF ACTION:
Mayor Law appoints the following to the Planning Commission:
Michael O'Halloran, 4420 SE 4th Street, Renton, WA, 98059, for a term that expires on June 30, 2011
(position previously held by Shawn Duffee).
STAFF RECOMMENDATION:
Concur in Mayor Law's appointment of Michael O'Halloran to the Planning Commission.
6b. ‐ Mayor Law appoints Michael O'Halloran to the Planning
Commission for an unexpired term expiring 6/30/2011 (position Page 3 of 138
6b. ‐ Mayor Law appoints Michael O'Halloran to the Planning
Commission for an unexpired term expiring 6/30/2011 (position Page 4 of 138
CITY OF RENTON COUNCIL AGENDA BILL
Subject/Title:
Purchasing Policy Revision
Meeting:
Regular Council - 15 Mar 2010
Exhibits:
Policy & Procedure 250-02 (marked up version)
Submitting Data: Dept/Div/Board:
Finance & Information Technology
Staff Contact:
Iwen Wang, FIS Dept. Administrator
Recommended Action:
Refer to Finance Committee
Fiscal Impact:
Expenditure Required: $ N/A Transfer Amendment: $N/A
Amount Budgeted: $ N/A Revenue Generated: $N/A
Total Project Budget: $ N/A City Share Total Project: $ N/A
SUMMARY OF ACTION:
As a government entity, the City’s procurement process is subject to many state law requirements.
With the substantial federal grants we receive each year, many of our purchases are also subject to
federal audit and procurement requirements. Even without these requirements, it is also important that
our processes are transparent and accountable to the taxpayers.
While the City must follow the state and federal requirements, efficient operation and agile delivery of
services is also of utmost importance to the City when our staff resources are reduced by nearly 12%
from 2008’s level. To balance these needs, an inter-department team worked together, reviewed our
current practices, and consolidated related policies into one comprehensive purchasing policy that
would guide all City purchases and contracts.
This consolidated policy in some cases relaxed current policy such as the bidding thresholds and
signature authorities; and in others, would tighten our current practices such as routine purchases of
common materials, supplies, and services throughout City departments. The intent is to combine these
items to solicit competitive pricing citywide to get the bulk volume discounts.
The revised purchasing policy 250-02 incorporates elements of the policy on Contracting Authority (800-
12) adopted by Council in 2007, incorporates the small works roster and eCityGov vendor lists approved
by the Council in December 2009, and will replace other outdated purchasing related policies. This is
the first major re-write of the Purchasing Policy and with its many changes, it will need to be reviewed
and results evaluated to make sure it is accomplishing the intended goals of being a more transparent
process and improved operation efficiency. The Administration will continue to refine the policy to
achieve these goals.
STAFF RECOMMENDATION:
Approve proposed purchasing policy which would revise thresholds and incorporate various related
policies and procedures into one updated policy.
6c. ‐ Finance and Information Services Department recommends
approval of the proposed revisions to the Purchasing (Bidding and Page 5 of 138
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POLICY & PROCEDURE
Subject:
PURCHASING, BIDDING AND CONTRACTING
REQUIREMENTS
Index: ADMINISTRATION
Number: 250‐02
Effective Date
1/1/2010
Supersedes
8/1/2003
Page
1 of 7
Staff Contact
Bonnie I. Walton
City Clerk
Approved By
Denis Law
Other Policies Superseded:
250‐01 Finance/Purchasing 4/1/85 Payment Schedule and Procedures
250‐03 Finance/Purchasing 8/1/85 Purchase Requisition Process
250‐04 Finance/Purchasing 8/1/86 The Purchase Order
250‐05 Finance/Purchasing 8/1/86 Local Purchase Order
250‐06 Finance/Purchasing 8/1/85 Confirming Purchase Order
250‐07 Finance/Purchasing 8/1/85 Cancellation of Orders
250‐08 Finance/Purchasing 8/1/85 Intergovernmental Cooperative Purchasing
250‐09 Finance/Purchasing 8/1/85 Central Office Supplies
800‐12 City Council 8/6/07 Contracting Authority
1.0 PURPOSE:
To establish a uniform and efficient review, approval, and execution policies and procedures for
selection, bidding, leasing, and contracting requirements for goods, services, and public works
projects throughout the City.
2.0 ORGANIZATIONS AFFECTED:
All departments/divisions.
3.0 REFERENCES:
RCW 35.22.620; RCW 35A.40.200 & 210; RCW 39.04.155; RCW 39.35A.020; RCW 39.80.
City of Renton Resolution No. 4029.
4.0 POLICY:
It is the policy of the City of Renton to utilize uniform, efficient, and competitive bidding, purchasing,
quoting, Requests for Proposals (RFPs), cooperative purchasing, and Statements of Qualifications
(SOQ’s) consistent with State law, and to ensure that all public purchases and contracts for services,
equipment, materials, supplies, and public works are executed and managed on the highest
professional and ethical standard and to achieve the greatest attainable levels of quality and value
permitted by law.
6c. ‐ Finance and Information Services Department recommends
approval of the proposed revisions to the Purchasing (Bidding and Page 6 of 138
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5.0 DEFINITIONS:
5.1 ALTERNATIVE PUBLIC WORK CONTRACTING PROCESSES: As it relates to this policy, Alternative
to the Competitive Sealed Bid process includes: 1) Small Works Roster (RCW 39.04.155); 2)
Limited Public Works Projects Process (RCW 39.04.155(3)); and 3) Performance‐Based
Contracts for Energy Equipment.
5.2 CONTRACT: An agreement between the City and one or more entities enforceable by law.
5.3 CONTRACT CHECKLIST: A form required to be completed and submitted to the City Clerk
Division with appropriate attachments for any contract, agreement, addendum, lease, or
change order.
5.4 CRAFT: A “sub‐unit” of a construction group such as carpenters, electricians, and masons.
5.5 ELECTRONIC WRITTEN QUOTES: A process whereby price quotations are obtained by fax,
email, or other paper or electronic format for the purpose of producing and comparing a
written record of vendor quotes.
5.6 EMERGENCY: Unforeseen circumstances beyond the control of the municipality that either a)
present a real, immediate threat to the proper performance of essential functions; or b) will
likely result in material loss or damage to property, bodily injury, or loss of life, if immediate
action is not taken.
5.7 ENERGY EQUIPMENT AND SERVICES: Equipment and services that are expected, upon
installation, to reduce the energy use or energy cost of an existing building or facility. The
services associated with the equipment, materials, or supplies, include but are not limited to
design, engineering, financing, installation, project management, guarantees, operations, and
maintenance.
Reduction in energy use or energy cost may also include reductions in the use or cost of water,
wastewater, or solid waste. RCW 39.35A.020(1)
5.8 GOODS AND MATERIALS: Supplies and equipment not used in connection with a Public Work;,
including but not limited to, office supplies, maintenance supplies (e.g. beauty bark, top soil,
etc), automobiles, and equipment (e.g. specialty lighting, cameras, and furniture).
5.9 INTERLOCAL COOPERATIVE PURCHASES: Cooperative or joint purchases by different
governmental entities established through interlocal agreements.
5.10 PERFORMANCE BASED CONTRACT: A contract that provides for payment only if there are cost
savings. RCW 39.35A.020(4)
5.11 PROFESSIONAL SERVICES: Activities rendered by any person, other than an employee of a
public or government agency, involving the presentation or delivery of professional opinion,
assessment, design, or other information to the City having a primarily intellectual final
product.
5.12 PUBLIC WORK: All work, construction, alteration, repair or improvement, other than ordinary
maintenance, executed at the cost of the Ccity or which is by law a lien or charge on any
property therein. (RCW 35.22.620(1))
6c. ‐ Finance and Information Services Department recommends
approval of the proposed revisions to the Purchasing (Bidding and Page 7 of 138
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Ordinary maintenance, in the context of Public Works contract and prevailing wages, is defined
as work that is not performed by contract1 and that is performed on a regularly scheduled basis
not less frequently than once per year to service, check, or replace items that are not broken;
or work not performed by contract that is not regularly scheduled but is required to maintain
the asset so that repair does not become necessary.
5.13 PUBLIC WORK (COMPETITIVE) BID PROCESS: Formal process of securing competitive price
quotes for public work projects based on a specific set of specifications by publishing a call for
bid in the City's official newspaper, or a paper of general circulation most likely to bring
responsive bids, at least 13 days prior to the bid opening date. The advertisement designates a
specific time and place for sealed bids to be publicly opened and read by the City Clerk. The
City Council awards the contract to the contractor submitting the lowest responsible bid.
5.14 REQUEST FOR PROPOSALS (RFP): Solicitation of proposals for professional services, or
equipment, materials or supplies not associated with a public work.
5.15 REQUEST FOR STATEMENT OF QUALIFICATIONS (SOQ): Solicitation of statements of
qualifications for a certain project or to establish an Architect and Engineering services roster.
5.16 SEALED BID: A document containing all required State and City documents as well as the
bidder’s proposal of project cost that is delivered to the City in a sealed envelope and is only to
be opened at the scheduled bid opening time.
5.17 SMALL WORKS ROSTER: A list of public work contractors who have requested placement on
the roster and who are properly licensed or registered to perform work in this state.
5.18 SOLE SOURCE SUPPLY: Desired product, which is clearly limited to a single source or supply.
5.19 TAXES: All amounts and thresholds contained herein shall be inclusive of applicable sales and
use taxes at the time of soliciting for bids/proposals.
6.0 PROCEDURES:
6.1 Authorization for Non‐Public Work Purchases and Services
6.1.1 Interlocal Purchasing Authorized: The state contracts, and other interlocal
cooperative purchasing agreements may be utilized for acquisition of non‐public work goods,
supplies, materials, equipment, and services without going through additional processes
described in this policy.
6.1.2 Shared Vendor Lists: The eCityGov Alliance vendor lists may be utilized to solicit
price quotes for purchases under this section and to fulfill the requirements under section 6.2
for prequalification of A&E services; and 6.7.1 for maintaining of a small works roster for small
public works projects.
6.1.3 Purchase at Auctions: RCW 39.30.045 allows for the purchase of any supplies or
1 WAC 296‐127‐010(7)(b) lists situations under which prevailing wages do not have to be paid. The phrase “not
performed by public contract” must be in the definition of “ordinary maintenance,” when prevailing wages are at issue
because cities must pay prevailing wages when contracting for services as opposed to using city force. City of Spokane
v. Department of Labor and Industries.
6c. ‐ Finance and Information Services Department recommends
approval of the proposed revisions to the Purchasing (Bidding and Page 8 of 138
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equipment at auctions rather than through competitive bidding, if the items can be obtained at
a competitive price.
6.1.16.1.4 Purchases and Services ‐ Process and Authorization: The eCityGov Alliance vendor
lists, state contracts, and other interlocal cooperative purchasing agreements may be utilized
for acquisition of non‐public work goods, supplies, materials, equipment, and services without
going through additional processes described in this policy.
Cost thresholds are as follows:
Under $10,000 – May be directly acquired by the department. Written quotes are
recommended but not required. Legal publication or bids are not required.
$10,000 to $35,000 – Requires written quotes as the method for selecting suppliers or service
providers. At least three written quotes are recommended. Publication of a request for
proposal (RFP) is optional.
$35,000 to $100,000 –Requires five written quotes. Publication of a request for proposal (RFP)
is optional.
$100,000 to $300,000 – Requires an advertised Request for Proposal (RFP) or Statement of
Qualifications (SOQ).
$300,000 and over – Requires formal competitive sealed bids.
COST PROCESS AUTHORIZATION SIGNATURE
Under $10,000 Direct negotiation Department Head Department Head
$10,000 to $35,000 *Vendor Lists – 3
written quotes
Department Head Department Head
$35,000 to $100,000 *Vendor Lists – 5
written quotes;(RFP
Optional)
Mayor Department head
$100,000 to $300,000 * RFP or RFQ City Council Mayor
$300, 000 & over Formal Competitive
Sealed Bid
City Council Mayor
*See sections 5.14 and 7.1.4 regarding Sole Source Supply
6.1.1.1 Purchase at Auctions: RCW 39.30.045 allows for the purchase of any supplies or
equipment at auctions rather than through competitive bidding, if the items can be obtained at a
competitive price.
6.1.26.1.5 PROFESSIONAL SERVICES: A competitive process is not required for professional
services other than for architectural, engineering, land surveying and landscape architectural
work as outlined in 6.2 below. The City may issue a RFP and may include cost as a selection
criteria; or it may choose to use the SOQ process and negotiate a contract with the most
qualified firm at a price that the City determines is fair and reasonable. The Department Head
may sign contracts under $35,000. The Mayor authorizes and Department Head signs contracts
between $35,000 and $100,000. The City Council authorizes and the Mayor signs contracts
$100,000 and over.
6c. ‐ Finance and Information Services Department recommends
approval of the proposed revisions to the Purchasing (Bidding and Page 9 of 138
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COST PROCESS AUTHORIZATION SIGNATURE
Under $35,000 NA Department Head Department Head
$35,000 to $100,000 NA Mayor Department head
$100,000and over NA City Council Mayor
6.2 Architectural, Engineering, Land Surveying and Landscape Architectural Professional Services
(collectively “A&E” services) ‐ Process and Authorization:
6.2.1 Request for Statements of Qualifications (SOQs), and Rosters: As a member agency,
the eCityGov Alliance is designated as the City’s source for a small public works roster, architect
and engineer roster, and vendor lists for goods and services.
In addition, the City may maintain additional annual A&E consultant rosters by publishing an
SOQ and obtaining Council approval. The department may enter into a contract from an
appropriate roster without publishing an additional RFP or SOQ.
6.2.2 Advertising Requirements: All Requests for Statements of Qualifications shall be
published in advance, concisely stating the general scope and nature of the project or work for
which services are required; and providing the name and telephone number of a staff contact
who can provide additional details. A notice may be published each time the service is needed,
or requirements for professional services may be published annually in advance for any
category or type of service. All SOQs must be e‐mailed to the City Clerk and Deputy City Clerk
for advertisement at least two working days prior to legal publication date. The eCityGov
Alliance is responsible for required advertising of their hosted rosters.
6.2.3 Evaluation of Qualifications: Following receipt of statement of qualifications, the City
shall evaluate the qualifications and performance data along with any information submitted
regarding a proposed project. Following evaluation of the written proposals and other relevant
information, the City may perform oral interviews with the firms rated the highest.
6.2.4 Selection: The City shall select the firm “most highly qualified” to provide the required
services. The price or cost of the service may not be considered by the City when determining
which firm is the most highly qualified. After selection, the City may negotiate a contract for
the services at a price that it determines is fair and reasonable, considering the estimated value
of the services to be rendered, as well as the scope and complexity of the project. If a
satisfactory contract cannot be negotiated, the City shall formally terminate the negotiations
with that firm and attempt to negotiate a contract with the next most qualified firm. The
process continues until an agreement is reached or the search is terminated.
6.3 Public Work Contracts and Bid Process
6.3.1 Bid Limits: Formal sealed bids are required for all public work projects costing
$300,000 and over.
6.3.2 UNDER $300,000 BUT NOT USING A SMALL WORKS ROSTER: If a Small Works Roster is
not used, cost thresholds for public works contracts of less than $40,000 for one craft or trade,
or of $65,000 for multiple crafts or trades, may be awarded without using formal competitive
sealed bidding, and those of more than $40,000 for one craft or trade or $65,000 for multiple
trades or crafts, shall be awarded by competitive sealed bid process.
6c. ‐ Finance and Information Services Department recommends
approval of the proposed revisions to the Purchasing (Bidding and Page 10 of 138
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COST CRAFT/TRADE PROCESS AUTHORIZATION SIGNATURE
Under $40,000 Single 3 Written Quotes Department Head Department
Head
$40,000 to
$150,000
Single Competitive Sealed
Bid
Mayor Department
Head
Under $65,000 Multiple 3 Written Quotes Department Head Department
Head
$65,000 to
$150,000
Multiple Competitive Sealed
Bid
Mayor Department
Head
$150,000 and
over
Single or Multiple Competitive Sealed
Bid
City Council Mayor
6.3.3 UNDER $300,000 AND USING A SMALL WORKS ROSTER: For public works projects with
estimated costs under $300,000, the Small Works Roster may be used. Specifically, contracts
using the Small Works Roster process less than $35,000 require quotes from a minimum of
three contractors on the roster, from $35,000 to $150,000 require quotes from a minimum of
five contractors on the roster, and from $150,000 to $300,000 quotes from a minimum of five
contractors on the roster plus notification to the remaining contractors on the roster that
quotes on the work are being sought. This notice can be made by publishing notice in a
newspaper in general circulation in the area, mailing a notice to the contractors, or sending or
posting a notice to these contractors by electronic means. The following subsections are not
applicable to small works roster process. Refer to Small Works Roster section for specific
requirements related to small works roster.
COST CRAFT/TRADE PROCESS AUTHORIZATION SIGNATURE
Under $35,000 Single or Multiple Small Works Roster
– 3 Written Quotes
Department Head Department
Head
$35,000 to
$150,000
Single or Multiple Small Works Roster
‐ 5 Written Quotes
Mayor Department
Head
$150,000 to
$300,000
Single or Multiple Small Works Roster
– 5 Written Quotes
& Notification to
Remainder on
Roster
City Council
Mayor
6.3.4 Bonding Requirements:
6.3.4.1 Bid Bond: For contracts awarded through the small works process, a bid
bond is not required. For contracts awarded through a competitive bidding process that
are under $100,000, bid bonds will not be required unless special circumstances cause
the department to require one; for contracts of $100,000 or more, a bid bond shall be
required.
6.3.4.2 Payment and Performance Bond and Retainage Requirements: Payment
and Performance bonds in an amount of at least 100% of the Contract2 are required in
addition to a retainage of not more than 5% of moneys earned by the contractor3 for
the purpose of completion of projects and fulfillment of claims and liens.
2 RCW 39.08.010 requires the bond, and 030 specifies that unless City ordinance provides an amount not less than
25% of the contract amount, the payment and performance bond amount shall be 100% of the contract.
3 RCW 60.28.011(1) requires 5% retainage, 60.28.011(3) allows retainage be reduced to 100% of work
remaining;60.28.011 (4)/(5) provides alternative retainage instruments.
6c. ‐ Finance and Information Services Department recommends
approval of the proposed revisions to the Purchasing (Bidding and Page 11 of 138
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6.3.4.2.1 For contracts $35,000 or less, at the option of contractor, the City
may waive the requirement for a payment and performance bond (but not
retainage) and instead retain fifty percent (50%) of the contract amount for a
period of thirty (30) days after final acceptance of the work or until receipt of
all necessary releases from Departments of Revenue, Labor and Industries,
and Employment Security and settlement of any liens filed under Chapter
60.28, whichever time period is greater.
6.3.4.2.2 For contracts less than $35,000 and awarded under “Limited Public
Works Project”4, the City may choose to waive the payment and performance
bonds as well as the retainage requirements of chapter 60.28 RCW, thereby
assuming the liability for the contractor’s nonpayment of laborers,
mechanics, subcontractors, materialmen, suppliers, and taxes imposed that
may be due from the contractor.
6.3.4.3 Advertising Requirements: For a public work contract $300,000 and over
or where a “Competitive Sealed Bid” is called for, a call for bids shall be published at
least 13 days in advance of the bid submission deadline. The call for bid shall be e‐
mailed to the City Clerk and Deputy Clerk for advertisement at least two days prior to
the first date of legal publication.
6.3.4.3.1 Advertisement Content: The legal advertisement for the call for
bid should contain the following items:
a) Title of project;
b) Nature and scope of work to be performed, and materials and
equipment to be furnished;
c) Statement of mandatory contractor criteria and notice of any
supplemental criteria under RCW 39.04.350
d) Location where contract documents (plans and specifications) may
be obtained or reviewed, including the URL of any electronic posting;
e) Cost to obtain a set of contract documents, or instructions for
downloading or printing electronic documents;
f) Time after which bids will not be received, and the location where
bids are to be submitted;
g) Place, date, and time set for opening of the sealed bids;
h) Name and telephone number of staff contact;
i) Requirements for an accompanying bid bond; and
j) Statements that the City retains the right to reject any and all bids
4 RCW 39.04.155 (3) Limited Public Works Projects requires solicitation of quotes from at least 3 contactors from the
Small Works Roster.
6c. ‐ Finance and Information Services Department recommends
approval of the proposed revisions to the Purchasing (Bidding and Page 12 of 138
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and to waive minor irregularities in the bidding process.
6.3.5 Work by City Employees: Projects in an annual budget period which are equal in dollar
value to 10% or less of the City’s public works construction budget, including any supplemental
amounts, may be performed by City employees. Whenever the maximum permitted amount is
reached for public works performed by City employees in any budget period, the appropriate
contracting process based on the above thresholds will be required for all remaining public
works projects in the budget period.
6.3.6 Prevailing Wage: The City is required by RCW 39.12.040 to require contractors to pay
prevailing wages on all public works contracts.
A “Statement of Intent to Pay Prevailing Wages” must be received from a contractor before any
payment is made, and an “Affidavit of Wages Paid” must be received following final acceptance
of the work, however, for contracts under $35,000 using the Small Works Roster process, the
combined Intent and Affidavit is allowed.
6.3.7 Public Works Contracts over $1 million ‐ RCW 39.30.060 specifies that in order for a
bid to be considered responsive, every bidder for a public works contract of over $1 million
must submit (either with their bid or within one hour of the bid submittal time) the names of all
subcontractors that will be used for heating, ventilation and air conditioning, plumbing, and
electrical work.
6.4 Sole Source:
The sole source process must not be utilized as a means to favor an individual, firm or product.
6.4.1 Sole source acquisition may only be used in instances where there is exclusive
distributorship of product or service or if such service or product is clearly unique.
6.4.2 In the event a department finds it necessary to use a sole source for the acquisition of
goods, services, or capital projects, the department shall first submit a rationale to the Mayor.
If approved by the Mayor, the sole source acquisition may be executed subject to the execution
section of this policy.
6.5 Performance‐Based Contracts for Energy Equipment and Services: Cities may enter into
performance‐based contracts when contracting for certain water conservation services, solid
waste reduction services, and energy conservation equipment and services.
To acquire such equipment, services or supplies, the City need not follow a competitive bid
process. Instead, the City shall announce its requirements and seeks proposals to meet those
requirements. Using evaluation criteria it has established in the Request for Proposals, the City
then negotiates with the person or firm that has submitted the “best proposal” according to
the criteria. If the City is unable to develop a satisfactory contract with that person or firm, it
may select the next best person or firm and negotiate with it until a contract can be agreed to
or the selection process is terminated.
6.6 Emergencies: In the event an emergency situation arises which necessitates a deviation from
bidding and contracting requirements, the Mayor or his/her designee shall award, on behalf of
the City those contracts necessary to address the emergency situation. In emergency
situations, RCW 39.04.280 requires that a written finding of the existence of an emergency be
made and entered into the public record no later than two weeks following the award of the
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contract.
6.7 Small Works Roster: When the contract amount for a public work project is $300,000 or less, a
department of the City may follow the small public works roster process for construction of a
public work or improvement as an alternative to the general competitive bidding requirements.
6.7.1 Publication. At least once a year, the City or on behalf of the City, eCity shall publish in
a newspaper of general circulation within the jurisdiction a notice of the existence of the roster
or rosters and solicit the names of contractors for such roster or rosters. Responsible
contractors shall be added to appropriate roster(s) at any time that they submit a written
request and necessary records. The City may require master contracts to be signed that
become effective when a specific award is made using a small works roster.
6.7.2 Quotations. The City shall obtain electronic, written quotations for public works
contracts from contractors on the appropriate small works roster to assure that a competitive
price is established and to award contracts to a contractor who meets the mandatory bidder
responsibility criteria in RCW 39.04.350(1) and may establish supplementary bidder criteria
under RCW 39.04.350 (2).
A contract awarded from a small works roster need not be advertised. Invitations for
quotations shall include an estimate of the scope and nature of the work to be performed as
well as materials and equipment to be furnished. However, detailed plans and specifications
need not be included in the invitation.
6.7.2.1 Quotations may be invited from all appropriate contractors on the
appropriate small works roster. As an alternative, quotations may be invited from at
least five contractors on the appropriate small works roster who have indicated the
capability of performing the kind of work being contracted, in a manner that will
equitably distribute the opportunity among the contractors on the appropriate roster.
6.7.2.2 If the estimated cost of the work is from one hundred and fifty thousand
dollars ($150,000) to three hundred thousand dollars ($300,000), the City may choose
to solicit bids from less than all the appropriate contractors on the appropriate small
works roster but must notify the remaining contractors on the appropriate small works
roster that quotations on the work are being sought. The City has the sole option of
determining whether this notice to the remaining contractors is made by:
publishing notice on the City’s website, or if applicable, with a link posted on the
eCity shared procurement portal;
sending a notice to these contractors by email based on an email address
provided by these contractors to the city or eCity database.
6.7.2.3 At the time quotes are solicited, the City representative shall not inform a
contractor of the terms or amount of any other contractor's quote for the same
project;
6.7.2.4 A written record shall be made by the City representative of each
contractor's bid on the project and of any conditions imposed on the bid. Immediately
after an award is made, the bid quotations obtained shall be recorded, open to public
inspection, and available by telephone inquiry.
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6.8 Determining Lowest Responsible Bidder. The City shall award the contract for the public works
project to the lowest responsible bidder provided that, whenever there is a reason to believe
that the lowest acceptable bid is not the best price obtainable or other reasons (i.e., defect or
any other reason), all bids may be rejected and the City may call for new bids. A responsible
bidder shall be a registered and/or licensed contractor who meets the mandatory bidder
responsibility criteria established by Chapter 133, Laws of 2007 (SHB 2010) and who meets any
supplementary bidder responsibly criteria established by the City.
The City may adopt additional criteria in determining the responsive responsible bidder as
appropriate for the particular project. Such criteria shall be clearly identified in the Bid
Document. Exhibit A attached to this policy shows some examples of potential criteria to be
considered.
6.9 Supplemental Bidder Requirements: All bidders shall be required to provide 1) a current state
unified business identifier number, 2) a valid workers’ compensation insurance coverage as
evidenced by a valid certificate of registration from the Ddepartment of Labor and Industry for
bidder employees, 3) valid Employment Security number for unemployment insurance, 4) an
affidavit that bidders are not disqualified from bidding as provided by statutes governing
unregistered and unlicensed contractors and/or failing to pay prevailing wages, and 5) a non‐
collusion and debarment affidavit. Bidders are required to provide an affidavit that it is not on
the “Lists of Pparties Excluded from Federal Pprocurement or Nonprocurement Programs.” The
project manager must also verify that the bidder is not disbarred or suspended from federally
funded programs and thereafter initial such confirmation on the Affidavit.
Additionally, a public works general contractor must verify responsibility criteria for each first
tier subcontractor and a subcontractor of any tier must provide the same verification for any of
its subcontractors. The verification requirement must be included in every general contract
and subcontract of every tier. The verification includes appropriate electrical and elevator
licensing, if applicable.
6.10 Claims Against Contractor’s Retainage: All claims filed against a contractor’s retainage and/or
performance bond on a public work project shall be submitted to the City Clerk Division.
Copies will be forwarded to the project manager, risk manager, and city attorney. The original
will be forwarded to the Accounts Payable Division of the Finance Department.
6.11 Change Orders Amendments and Addenda: A change order, a supplement, an amendment, or
an addendum is any alteration to an existing contract or agreement.
A change order may occur during a project in progress that is not consistent with the initial
scope, quantities, specifications, or contracting period upon which the contract was awarded.
Bids are not required when unforeseen extra work becomes necessary under a valid preexisting
contract. However, when change in scope and purposes deviates substantially from the
original plans as to constitute a new undertaking shall be reviewed by the City Attorney to
determine if constitutes a separate project and the change requires a separate contract
process.
Change orders or amendments within the authorized project budget plus any approved
amendments may be signed by the Department Head or by a supervisor so authorized by the
Department Head. Change orders or amendments when cumulative value exceeds the higher
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of $100,000 or 10% of the initial contract award amount should be reported to the City Council
as information only within 90 days of their execution by Department Head or designee.
7.0 APPROVAL AND EXECUTION OF CONTRACTS AND AGREEMENTS:
7.1 Council Approval of Contracts
7.1.1 7.1.1 Cost Threshold: All contracts and agreements that are $100,000, or $150,000 for
public works contracts, and over in cost require Council approval prior to execution by the
Mayor.
7.1.17.1.2 Public Work Project Bid Awards: Public work project bid awards will be placed on
the Council consent agenda with the recommended action of "Council concur" if the following
conditions are met:
The lowest responsible bid is within the project (or applicable element of the
project) budget;
There is more than one bid;
The bids contain no significant irregularities.
Following the bid opening, an agenda bill will be prepared by the City Clerk. The project
manager shall prepare a memo to the City Council recommending award of the project contract
to the lowest, responsible bidder and identifying the funding source. The memo should also
request Council to authorize any “Contract Contingency” deemed appropriate by the
Department Head to cover potential change orders. The memo should be submitted to the City
Clerk to accompany the agenda bill and the bid tabulation. If one or more of the three criteria
are not met, the bid award will be referred to the appropriate Council committee for review
and recommendation.
All bid packages, including date‐stamped envelopes, shall be returned to the City Clerk Division
for archiving.
7.1.27.1.3 Non‐Public Work Contracts and Addenda: A non‐public work contract $100,000
and over in cost shall be placed on the Council consent agenda with the recommended action
of referral to the appropriate Council committee, unless is for routine or reoccurring purchases
or services, in which case it may be placed on the Council consent agenda with the
recommended action of “Council concur.”
An amendment $100,000,000 and over in cost shall be placed on the consent agenda with the
recommended action of “Council concur" if the following conditions are met:
The cost of the amendment does not exceed the budgeted amount originally
approved for the contract, including previously approved addenda.
A description of the project is attached.
Background information on the contract, including date of Council approval of the
original contract, is included.
If one or more of the conditions listed above are not met, the amendment will be referred to
the appropriate Council committee for review and recommendation.
7.1.37.1.4 Exceptions that apply to all contracts and purchases: The following exceptions
require Council review:
The line item exceeds the amount budgeted or is not budgeted, in which case it will
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require referral to appropriate Council committee.
The contract or purchase is through an interlocal agreement that has not been
approved by the City Council and requires adoption of a resolution.
7.2 Execution of Contracts
7.2.1 Transmittal and Approvals Required: All City contracts and contract change orders,
amendments, addendum, supplements, regardless of signature authority, will be submitted to
the City Clerk Division accompanied by a completed contract checklist form (available through
the City Clerk and on the intranet). Staff is responsible for completion and attachment of all
applicable requirements as indicated on the contract checklist. Whenever possible, the original
contracts should be signed first by the contractor, consultant or governmental agency entering
into the contract before being submitted to the City Clerk for execution by the Mayor.
7.2.2 Signing Authority: All contracts $35,000 and over, including amendment shall be
approved by the Mayor. The Mayor may delegate the authority to execute contracts and
agreements whose value is less than $100,000, or $150,000 for public works contracts to
Department Heads. Following execution, the City Clerk Division will return one or more original
contracts to the department to transmit to the contractor, consultant, or agency. One original
contract will be retained by the City Clerk Division.
7.2.3 Indexing and Archiving: All City contracts will be assigned a CAG (Contract Agreement)
number, indexed and archived by the City Clerk Division in accordance with the State records
retention schedule.
7.3 Informational Report
The City Clerk Division shall maintain a contract and provide Council with quarterly reports on
all new contracts executed by the City during the past quarter that is $50,000 or higher in
value.
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Exhibit A: Sample of Additional Criterion for Responsible Bidder
Supplemental bidder requirements can vary from contract to contract. The following are some examples.
Example of General Criteria that are Applicable to all Contracts:
1. Delinquent State Taxes ‐ should have had none in the past 3 years.
2. Public bidding crime ‐ should not have been convicted of this in the past 5 years.
3. Claims against retainage or bond – the bidder should not have an excessive amount of claims filed
against them in the past 3 years. This would demonstrate lack of effective management on past
projects toward sub contractors, suppliers and workers.
4. Termination for cause – the bidder should not have been terminated for cause by any other
government agency during the previous 5 years immediately preceding the bid submittal.
5. Lawsuits – the bidder should not have any lawsuits filed against them on a public works contract in
the past 5 years.
6. Prevailing wages – the bidder should not have prevailing wage complaints filed against them in the
past 5 years.
7. The ability, capacity and skill to perform the service required.
8. Whether the bidder can perform the contract within the time specified, taking into account all of
the bidders existing business commitments.
9. The quality of performance of previous contracts or services.
10. The financial qualifications of the bidder.
11. Character and record of performance of the bidder.
12. Thoroughness of bidder’s compliance with and completion of data requests to the extent it impacts
the Ccity’s ability to compare bid proposals and verify compliance with specifications.
13. Such other information as may be secured having a bearing on the decision to award the contract,
including but not limited to prior safety violations.
14. Subcontractor responsibility – the bidder’s standard subcontract form shall include the
subcontractor responsibility language required by RCW 39.06.020, and the bidder shall have an
established procedure whit itwhich it utilizes to validate the responsibility of each of its
subcontractors. The bidder’s subcontract form shall also include a requirement that each of its
subcontractors shall have and document a similar procedure to determine whether the sub‐tier
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subcontractors with whom it contracts are also “responsible” subcontractors as defined by RCW
39.06.020.
15. Completion of similar projects – The bidder shall have successfully completed projects of a similar
size and scope as required by the contract documents for this project. In evaluating whether the
projects were “successfully completed”, the owner may check owner references for the previous
projects and may evaluate the owner’s assessment of the bidders performance, including but not
limited to the following areas:
Quality control
Safety record
Timeliness of performance
Use of skilled personnel
Management of subcontractors
Availability of and use of appropriate equipment
Compliance with contract documents
Management of submittals process, change orders and close out.
6c. ‐ Finance and Information Services Department recommends
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CITY OF RENTON COUNCIL AGENDA BILL
Subject/Title:
Smurfit-Stone Bankruptcy Reorganization Plan
Meeting:
Regular Council - 15 Mar 2010
Exhibits:
Issue Paper w/ City Attorney Memo
Submitting Data: Dept/Div/Board:
Finance & Information Technology
Staff Contact:
Iwen Wang, F&IT Administrator
Recommended Action:
Refer to Finance Committee
Fiscal Impact:
Expenditure Required: $ NA Transfer Amendment: $
Amount Budgeted: $ NA Revenue Generated: $
Total Project Budget: $ NA City Share Total Project: $
SUMMARY OF ACTION:
Should the City select the cash option as settlement of the pre-bankruptcy petition receivable?
Smurfit-Stone Container Corporation (SSCC), one of the largest recycler of paper and maker of paper
packaging in North America, filed for Chapter 11 protection on January 26, 2009. At the time of the
filing, they have $83,798.97 in utility bills outstanding. Since the Bankruptcy Court recently approved
SCCC's reorganization plan filing and allowed SSCC to proceed to seek creditor's approval of the Plan,
the City Attorney has given the City three options to consider in order to recover any of the utility bills
that are outstanding prior to the Chapter 11 filing.
STAFF RECOMMENDATION:
Approve reducing Smurfit-Stone Container Corporation bankruptcy claim to $10,000 cash settlement.
6d. ‐ Finance and Information Services Department recommends
approval to reduce Smurfitt‐Stone Container Corporation's Chapter 11 Page 20 of 138
M
Fll
INFORMATlOiilECJiC
EMORANDUM
City of i^ity oi s\ w
DATE: March 8, 2010
TO: Don Persson, Council President
Members of the Renton City Council
VIA: Denis Law, Mayor
FROM: Iwen Wang, F&IT Administrator
SUBJECT: Smurfit-Stone Bankruptcy Reorganization Plan
ISSUE
Should the City select the cash option as settlement of the pre-bankruptcy-petition receivable?
RECOMMENDATION
Staff recommends the Council's approval of reducing the claim amount to $10,000 in order to
receive cash settlement.
BACKGROUND SUMMARY
Smurfit Stone Container Corporation (SSCC) is one of the largest recycler of paper and maker
of paper packaging in North America. They have recycling facilities in multiple states including
one in Renton. The company filed Chapter 11 protection on January 26, 2009. At the time of
the filing, they have $83,798.97 of utility bills outstanding for service period of October 2008
through January 2009. Of which, $79,509.35 is for solid waste, $3,132.86 for late penalties and
the remaining $1,156.76 is combined water/sewer/storm and metro charges. Part of the
reason for the accumulated balance is the time SSCC was disputing the solid waste charges and
the City was working with Waste Management to provide documentation of the service
charges. The City filed a claim with the bankruptcy trust for the $83,798.97, and it is
considered part of the unsecured general debt of the SSCC.
The Bankruptcy Court recently approved SSCC's Reorganization Plan filing and allowed SSCC to
proceed to seek creditor's approval of the Plan. The Plan if approved, would wipe out all
current equity owner interests; would convert over $2.9 billion unsecured debts to common
stock of the reorganized Smurfit Stone Container Enterprise Inc. (SSCE); and would raise $1.85
billion from new debts secured by fixed assets and working capital to pay secured creditors and
small unsecured claims of $10,000 or less.
As indicated in the attached memo from the City Attorney, as an unsecured general creditor
the City has three options:
1) Accept between 64-71% of the debt in new common stock.
2) Accept cash with the percentage being established by a reverse auction (City will
6d. ‐ Finance and Information Services Department recommends
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Randy Corman, Council President
Members of the Renton City Council
Page 2 of 2
March 8, 2010
need to specify the % of cash it would be willing to accept).
3) Reduce the claim to $10,000 and receive that amount in cash.
At this point, both option 1 and 2 would likely result in the City holding the SSCE common
stocks and would require the City to convert them to cash in the open market (it is anticipated
the new stocks will be traded on NYSE or NASDAQ. The company's stocks are currently traded
over the counter (OTC) at less than 20 cents per share). It is uncertain what amount would be
recovered through this process. Moody's has recently issued a B2 rating on SSCE proposed
new bonds mentioned above. Moody judges obligations rated B as speculative and "subject to
high credit risk", and have "generally poor credit quality."
Reducing the claim to $10,000 is a substantial reduction in recovery, and would mean the City
will need to write off $73,800. Part of the write off will be deducted from Waste Management
payment, with the net cost to the City to be $61,085.27.
CONCLUSION
While $10,000 cash is only a fraction of the amount owed, it is more certain and likely to
resolve the quickest than the other options at this point. With the partial credit from Waste
Management, the net revenue loss for the City would be $61,085.27. It is with these
considerations, staff recommends the City to reduce the claim amount and choose the cash
settlement.
Attachment: Memo from City Attorney regarding City options
CC: Jay Covington, CAO
Marty Wine, Assistant to CAO
Elloyce Sumpter, Utility Billing Supervisor
Gina Jarvis, Fiscal Services Director
6d. ‐ Finance and Information Services Department recommends
approval to reduce Smurfitt‐Stone Container Corporation's Chapter 11 Page 22 of 138
CtTYATTORMEY
MEMORANDUM
DATE:
TO:
FROM:
SUBJECT:
February 23, 2010
Iwen Wang, f&IS Administrator
Lawrence I, Warren, City Attorney
Smurfit-Stone Bankruptcy
i have received a ballot for the City to accept or reject the Smurfit-Stone plan of reorganisation,
A committee, representing the debtors, has recommended that the City vote to- accept the plan
of reorganization.
The documents Involved are extensive. I have been able to boil down the information. Hie
debt owed to the City is $83,833.22, The City Is being offered three alternatives for satisfying
this debt:
1} Accept between 64-71% of the debt in new common stock, the percentage to be established
by how many debtors participate in the program.
2) Accept cash with the percentage being established by a reverse auction. Basically those
debtors wishing to accept the smallest percentage of their debt in cash will be paid first, the
next lowest percentage being paid next, until the pool, estimated to be around $25,000,000,
has been exhausted if we choose to participate in the cash out election and the pool has been
exhausted then the City wilt receive the common stock,
election disclosure to this memo,
have attached a copy of the cash Out:
3) The City can reduce its claim to $10,000 and receive that amount of cash.
You and I have briefly discussed the fact that I had received this ballot and the fact that it would
be advisable to present the matter to the City Council for direction. If you need more
information, before submitting this matter to the Council, please let mc know,
^Lawrence i/warren
LiW: scr
Cc: Mayor Law
J ay Covington
Sregg Zimmerman
6d. ‐ Finance and Information Services Department recommends
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E. Cub-Oof HectfttM,
PwsuMt to section 6,16 of the Plan (see Section VJU6 of this Disclosure Statement}*
Holders of Allowed Class 2B General Uwmwmi Claims that we not Holders of
Prepetition
MomhoMer Claims, Industrial Revenue Bond Claims and Hodge Industrial Revenue
8oaJ
Claims (the: "EHphle Cash-Oit Pm£dpmtsm)wM .have the opportunity to make the
Castfc-Oui
Election* Each Eligible Cash-Out fecticipant will be able to indicate on its Billot die
percentage .
("Cash*Out Percentage53) amount of its Allowed Claim that it would be wiling to receive^
ineash
(and to lieu of its PWs Rati Share of the New SSCC Common Stock Pool), in exchange
for its
Allowed CWttt Following the Voting Deadlioe, the Debtors will deteinme vMzk
Holders have.
successfully partieittated in the Cash-Out Auction starting with the Eligible Cash-Out
Participants that indicate the lowest Cash-Out Percentage (each group of Eligible Cash-
Out
Participants that indicate the same Cash-Out Percentage are a "Cash-Out Percentage
Group**),
and then proceeding to the next Cash-Out Peseentege Group until insufficient cash is left
in the
Cub-Out Distribution Pool to pay the next highest Cash*Out Percentage Of oup. Tie
Cash-Out
Distiihtttioil Pool shall be the difference between $50 KuTliottand the Total Convenienee
Claim
DistrilHitiott (which is estimated to be between $25 million and $30 millon in the ekirns
summary chart herein). Holders that make the Cash-Out Election on their Ballot but are
not
successful will instead receive Hk&x Pro Rata Share of the New SSCC Common Stock
Pool on
the Initial IMstrfimition Date in MI and complete satisfaction, ^tttement, release and
discharge of
their Allowed. elates. Holders in Class 2E may not make both the Cash-Out: Electioa and
the
Co&mmmm Claim Election.
6d. ‐ Finance and Information Services Department recommends
approval to reduce Smurfitt‐Stone Container Corporation's Chapter 11 Page 24 of 138
CITY OF RENTON COUNCIL AGENDA BILL
Subject/Title:
Amend Fire Codes Fees
Meeting:
Regular Council - 15 Mar 2010
Exhibits:
Revised 2010 Fee Schedule
Submitting Data: Dept/Div/Board:
Finance & Information Technology
Staff Contact:
Iwen Wang, Administrator
Recommended Action:
Refer to Finance Committee
Fiscal Impact:
Expenditure Required: $ N/A Transfer Amendment: $N/A
Amount Budgeted: $ N/A Revenue Generated: $$85,000
Total Project Budget: $ N/A City Share Total Project: $ N/A
SUMMARY OF ACTION:
Should the City adopt an amended Fee Schedule to incorporate changes in the Fire and Emergency
Services Department's fees in the 2010 City's fee schedule?
The Fire and Emergency Services Department fee schedule has not been adjusted since 2004. The
proposed adjustments to the fee schedule will better allign these fees with the city's policy on fees and
charges, will provide better cost recovery, and reflect the increased cost of providing the services
associated with these fees. The proposed adjustments will still compare favorably with other South
King County cities' fees. The adjustments will generate additional annual revenues of approximately
$85,000 for the City dependent upon the number of instances which would trigger assessment of fees.
Also included are other housekeeping fee adjustments.
STAFF RECOMMENDATION:
Adopt the Proposed Amended Fee Schedule.
6e. ‐ Finance and Information Services Department recommends
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6e. ‐ Finance and Information Services Department recommends
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6e. ‐ Finance and Information Services Department recommends
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6e. ‐ Finance and Information Services Department recommends
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6e. ‐ Finance and Information Services Department recommends
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6e. ‐ Finance and Information Services Department recommends
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6e. ‐ Finance and Information Services Department recommends
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6e. ‐ Finance and Information Services Department recommends
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6e. ‐ Finance and Information Services Department recommends
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6e. ‐ Finance and Information Services Department recommends
adopting the amended 2010 Fee Schedule to incorporate changes to Fire Page 38 of 138
6e. ‐ Finance and Information Services Department recommends
adopting the amended 2010 Fee Schedule to incorporate changes to Fire Page 39 of 138
6e. ‐ Finance and Information Services Department recommends
adopting the amended 2010 Fee Schedule to incorporate changes to Fire Page 40 of 138
6e. ‐ Finance and Information Services Department recommends
adopting the amended 2010 Fee Schedule to incorporate changes to Fire Page 41 of 138
6e. ‐ Finance and Information Services Department recommends
adopting the amended 2010 Fee Schedule to incorporate changes to Fire Page 42 of 138
6e. ‐ Finance and Information Services Department recommends
adopting the amended 2010 Fee Schedule to incorporate changes to Fire Page 43 of 138
CITY OF RENTON COUNCIL AGENDA BILL
Subject/Title:
Advance Refunding of 2001 LTGO Bonds
Meeting:
Regular Council - 15 Mar 2010
Exhibits:
Summary of Refunding Results
Escrow Agreement
Draft Bond Ordinance
Submitting Data: Dept/Div/Board:
Finance & Information Technology
Staff Contact:
Iwen Wang, F&IT Administrator
Recommended Action:
Refer to Finance Committee
Fiscal Impact:
Expenditure Required: $ Transfer Amendment: $
Amount Budgeted: $ Revenue Generated: $
Total Project Budget: $ City Share Total Project: $
SUMMARY OF ACTION:
Should the City refinance the 2001 Limited Tax General Obligation (LTGO) Bonds issued for the
construction of the City Center Parking Garage?
The City issued $19.5 million of Limited Tax General Obligation Bonds (LTGO) in 2001 for 1) $13.5
million to refinance the 1997 LTGO issued for the acquisition and remodeling of the current City Hall;
and 2) $6 million to provide “new money” for the development of City Center Garage. The garage
portion of the issue was for 20 years, with interest only payments up to 2017, and principle payments
spread from 2018 through 2021.
These bonds have a provision that allows the City to redeem them at face (par) value starting December
1, 2011, and on any debt service payment dates thereafter. The refinancing plan is to provide for
sufficient funds through the new bond issue in escrow to pay the interest on the old bonds for the
remaining of 2010 and 2011, and then pay the $6 million principal balance on December 1, 2011.
The new issue is expected to be around $6.15 million, and will follow the same amortization schedule
as the 2001 issue, interest only payments through 2018 and principal will be paid between 2018 and
2021. The lower interest rate will allow the City to save around $42,000 a year, or $500,000 over the
remaining 11.5 years, with a present value savings at $424,000.
STAFF RECOMMENDATION:
Approve the refinancing plan and all the associated documents necessary to issue the new bonds,
including the associated Escrow Agreement, and redemption of the outstanding 2001 bonds.
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SUMMARY OF REFUNDING RESULTS
City of Renton
Proposed Ref. of New Money Portion of 2001 LTGO
PRELIMINARY NUMBERS
Dated Date 05/19/2010
Delivery Date 05/19/2010
Arbitrage yield 3.236801%
Escrow yield 0.554716%
Bond Par Amount 6,150,000.00
True Interest Cost 3.369569%
Net Interest Cost 3.518175%
Average Coupon 4.277530%
Average Life 9.804
Par amount of refunded bonds 6,000,000.00
Average coupon of refunded bonds 5.106203%
Average life of refunded bonds 10.098
PV of prior debt to 05/19/2010 @ 3.236801% 7,102,145.98
Net PV Savings 424,063.95
Percentage savings of refunded bonds 7.067733%
Percentage savings of refunding bonds 6.895349%
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SAVINGS
City of Renton
Proposed Ref. of New Money Portion of 2001 LTGO
PRELIMINARY NUMBERS
Present Value
Prior Refunding Annual to 05/19/2010
Date Debt Service Debt Service Savings Savings @ 3.2368011%
06/01/2010 153,556.25 - 153,556.25 - 153,391.99
12/01/2010 153,556.25 282,586.67 -129,030.42 24,525.83 -126,839.62
06/01/2011 153,556.25 127,537.50 26,018.75 - 25,169.63
12/01/2011 153,556.25 132,537.50 21,018.75 47,037.50 20,008.98
06/01/2012 153,556.25 127,487.50 26,068.75 - 24,421.14
12/01/2012 153,556.25 137,487.50 16,068.75 42,137.50 14,813.43
06/01/2013 153,556.25 127,387.50 26,168.75 - 23,740.18
12/01/2013 153,556.25 137,387.50 16,168.75 42,337.50 14,434.61
06/01/2014 153,556.25 127,237.50 26,318.75 - 23,121.80
12/01/2014 153,556.25 137,237.50 16,318.75 42,637.50 14,108.18
06/01/2015 153,556.25 127,087.50 26,468.75 - 22,518.79
12/01/2015 153,556.25 137,087.50 16,468.75 42,937.50 13,787.96
06/01/2016 153,556.25 126,937.50 26,618.75 - 21,930.81
12/01/2016 153,556.25 136,937.50 16,618.75 43,237.50 13,473.89
06/01/2017 153,556.25 126,737.50 26,818.75 - 21,397.39
12/01/2017 153,556.25 136,737.50 16,818.75 43,637.50 13,205.16
06/01/2018 153,556.25 126,537.50 27,018.75 - 20,875.78
12/01/2018 1,538,556.25 1,521,537.50 17,018.75 44,037.50 12,939.96
06/01/2019 117,200.00 98,637.50 18,562.50 - 13,888.94
12/01/2019 1,577,200.00 1,548,637.50 28,562.50 47,125.00 21,030.84
06/01/2020 78,875.00 69,637.50 9,237.50 - 6,693.33
12/01/2020 1,618,875.00 1,584,637.50 34,237.50 43,475.00 24,412.81
06/01/2021 40,375.00 35,550.00 4,825.00 - 3,385.64
12/01/2021 1,655,375.00 1,615,550.00 39,825.00 44,650.00 27,499.63
9,236,912.50 8,729,136.67 507,775.83 507,775.83 423,411.24
Savings Summary
PV of savings from cash flow 423,411.24
Plus: Refunding funds on hand 652.71
Net PV Savings 424,063.95
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SOURCES AND USES OF FUNDS
City of Renton
Proposed Ref. of New Money Portion of 2001 LTGO
PRELIMINARY NUMBERS
Dated Date 05/19/2010
Delivery Date 05/19/2010
Sources:
Bond Proceeds:
Par Amount 6,150,000.00
Premium 500,903.05
6,650,903.05
Uses:
Refunding Escrow Deposits:
Cash Deposit 153,557.34
SLGS Purchases 6,407,293.00
6,560,850.34
Delivery Date Expenses:
Cost of Issuance 46,350.00
Underwriter's Discount 43,050.00
89,400.00
Other Uses of Funds:
Additional Proceeds 652.71
6,650,903.05
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BOND PRICING
City of Renton
Proposed Ref. of New Money Portion of 2001 LTGO
PRELIMINARY NUMBERS
Maturity Yield to Call Call Call Date Call Price Premium
Bond Component Date Amount Rate Yield Price Maturity Date Price for Arb Yield for Arb Yield (-Discount)
Serial Bonds (Ref 01 LT):
12/01/2010 145,000 2.000% 1.000% 100.530 - - - - - 768.50
12/01/2011 5,000 2.000% 1.250% 101.135 - - - - - 56.75
12/01/2012 10,000 2.000% 1.250% 101.864 - - - - - 186.40
12/01/2013 10,000 3.000% 1.420% 105.425 - - - - - 542.50
12/01/2014 10,000 3.000% 1.720% 105.558 - - - - - 555.80
12/01/2015 10,000 3.000% 2.120% 104.571 - - - - - 457.10
12/01/2016 10,000 4.000% 2.500% 108.989 - - - - - 898.90
12/01/2017 10,000 4.000% 2.770% 108.310 - - - - - 831.00
12/01/2018 1,395,000 4.000% 3.030% 107.244 - - - - - 101,053.80
12/01/2019 1,450,000 4.000% 3.200% 106.527 - - - - - 94,641.50
12/01/2020 1,515,000 4.500% 3.310% 110.088 C 3.355% 06/01/2020 100.000 06/01/2020 100.000 152,833.20
12/01/2021 1,580,000 4.500% 3.390% 109.372 C 3.505% 06/01/2020 100.000 06/01/2020 100.000 148,077.60
6,150,000 500,903.05
Dated Date 05/19/2010
Delivery Date 05/19/2010
First Coupon 12/01/2010
Par Amount 6,150,000.00
Premium 500,903.05
Production 6,650,903.05 108.144765%
Underwriter's Discount -43,050.00 -0.700000%
Purchase Price 6,607,853.05 107.444765%
Accrued Interest -
Net Proceeds 6,607,853.05
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BOND DEBT SERVICE
City of Renton
Proposed Ref. of New Money Portion of 2001 LTGO
PRELIMINARY NUMBERS
Dated Date 05/19/2010
Delivery Date 05/19/2010
Period Annual
Ending Principal Coupon Interest Debt Service Debt Service
12/01/2010 145,000 2.000% 137,586.67 282,586.67 282,586.67
06/01/2011 - - 127,537.50 127,537.50 -
12/01/2011 5,000 2.000% 127,537.50 132,537.50 260,075.00
06/01/2012 - - 127,487.50 127,487.50 -
12/01/2012 10,000 2.000% 127,487.50 137,487.50 264,975.00
06/01/2013 - - 127,387.50 127,387.50 -
12/01/2013 10,000 3.000% 127,387.50 137,387.50 264,775.00
06/01/2014 - - 127,237.50 127,237.50 -
12/01/2014 10,000 3.000% 127,237.50 137,237.50 264,475.00
06/01/2015 - - 127,087.50 127,087.50 -
12/01/2015 10,000 3.000% 127,087.50 137,087.50 264,175.00
06/01/2016 - - 126,937.50 126,937.50 -
12/01/2016 10,000 4.000% 126,937.50 136,937.50 263,875.00
06/01/2017 - - 126,737.50 126,737.50 -
12/01/2017 10,000 4.000% 126,737.50 136,737.50 263,475.00
06/01/2018 - - 126,537.50 126,537.50 -
12/01/2018 1,395,000 4.000% 126,537.50 1,521,537.50 1,648,075.00
06/01/2019 - - 98,637.50 98,637.50 -
12/01/2019 1,450,000 4.000% 98,637.50 1,548,637.50 1,647,275.00
06/01/2020 - - 69,637.50 69,637.50 -
12/01/2020 1,515,000 4.500% 69,637.50 1,584,637.50 1,654,275.00
06/01/2021 - - 35,550.00 35,550.00 -
12/01/2021 1,580,000 4.500% 35,550.00 1,615,550.00 1,651,100.00
6,150,000 2,579,136.67 8,729,136.67 8,729,136.67
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BOND SUMMARY STATISTICS
City of Renton
Proposed Ref. of New Money Portion of 2001 LTGO
PRELIMINARY NUMBERS
Dated Date 05/19/2010
Delivery Date 05/19/2010
Last Maturity 12/01/2021
Arbitrage Yield 3.236801%
True Interest Cost (TIC) 3.369569%
Net Interest Cost (NIC) 3.518175%
All-In TIC 3.457330%
Average Coupon 4.277530%
Average Life (years) 9.804
Duration of Issue (years) 8.162
Par Amount 6,150,000.00
Bond Proceeds 6,650,903.05
Total Interest 2,579,136.67
Net Interest 2,121,283.62
Total Debt Service 8,729,136.67
Maximum Annual Debt Service 1,654,275.00
Average Annual Debt Service 756,861.56
Underwriter's Fees (per $1000)
Average Takedown -
Other Fee 7.000000
Total Underwriter's Discount 7.000000
Bid Price 107.444765
Par Average Average
Bond Component Value Price Coupon Life
Serial Bonds (Ref 01 LT) 6,150,000.00 108.145 4.278% 9.804
6,150,000.00 9.804
All-In Arbitrage
TIC TIC Yield
Par Value 6,150,000.00 6,150,000.00 6,150,000.00
+ Accrued Interest - - -
+ Premium (Discount) 500,903.05 500,903.05 500,903.05
- Underwriter's Discount -43,050.00 -43,050.00
- Cost of Issuance Expense -46,350.00
- Other Amounts - - -
Target Value 6,607,853.05 6,561,503.05 6,650,903.05
Target Date 05/19/2010 05/19/2010 05/19/2010
Yield 3.369569% 3.457330% 3.236801%
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PROOF OF ARBITRAGE YIELD
City of Renton
Proposed Ref. of New Money Portion of 2001 LTGO
PRELIMINARY NUMBERS
Present Value
to 05/19/2010
Date Debt Service @ 3.2368011%
12/01/2010 282,586.67 277,788.65
06/01/2011 127,537.50 123,375.34
12/01/2011 132,537.50 126,170.23
06/01/2012 127,487.50 119,429.98
12/01/2012 137,487.50 126,746.69
06/01/2013 127,387.50 115,565.41
12/01/2013 137,387.50 122,652.36
06/01/2014 127,237.50 111,781.89
12/01/2014 137,237.50 118,647.01
06/01/2015 127,087.50 108,122.10
12/01/2015 137,087.50 114,772.31
06/01/2016 126,937.50 104,581.98
12/01/2016 136,937.50 111,024.02
06/01/2017 126,737.50 101,117.74
12/01/2017 136,737.50 107,358.76
06/01/2018 126,537.50 97,768.00
12/01/2018 1,521,537.50 1,156,878.65
06/01/2019 98,637.50 73,803.14
12/01/2019 1,548,637.50 1,140,276.58
06/01/2020 3,164,637.50 2,293,042.21
8,588,399.17 6,650,903.05
Proceeds Summary
Delivery date 05/19/2010
Par Value 6,150,000.00
Premium (Discount) 500,903.05
Target for yield calculation 6,650,903.05
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PROOF OF ARBITRAGE YIELD
City of Renton
Proposed Ref. of New Money Portion of 2001 LTGO
PRELIMINARY NUMBERS
Assumed Call/Computation Dates for Premium Bonds
Net Present
Value (NPV)
Bond Maturity Call Call to 05/19/2010
Component Date Rate Yield Date Price @ 3.2368011%
SERIAL1 12/01/2020 4.500% 3.310% 06/01/2020 100.000 9,986.94
SERIAL1 12/01/2021 4.500% 3.390% 06/01/2020 100.000 21,728.22
Rejected Call/Computation Dates for Premium Bonds
Net Present
Value (NPV)
Bond Maturity Call Call to 05/19/2010 Increase
Component Date Rate Yield Date Price @ 3.2368011% to NPV
SERIAL1 12/01/2020 4.500% 3.310% - - 16,809.85 6,822.91
SERIAL1 12/01/2021 4.500% 3.390% - - 42,737.00 21,008.78
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PRIOR BOND DEBT SERVICE
City of Renton
Proposed Ref. of New Money Portion of 2001 LTGO
PRELIMINARY NUMBERS
2001 LTGO & Refunding Bonds (11/1/01)
Period Annual
Ending Principal Coupon Interest Debt Service Debt Service
06/01/2010 - - 153,556.25 153,556.25 -
12/01/2010 - - 153,556.25 153,556.25 307,112.50
06/01/2011 - - 153,556.25 153,556.25 -
12/01/2011 - - 153,556.25 153,556.25 307,112.50
06/01/2012 - - 153,556.25 153,556.25 -
12/01/2012 - - 153,556.25 153,556.25 307,112.50
06/01/2013 - - 153,556.25 153,556.25 -
12/01/2013 - - 153,556.25 153,556.25 307,112.50
06/01/2014 - - 153,556.25 153,556.25 -
12/01/2014 - - 153,556.25 153,556.25 307,112.50
06/01/2015 - - 153,556.25 153,556.25 -
12/01/2015 - - 153,556.25 153,556.25 307,112.50
06/01/2016 - - 153,556.25 153,556.25 -
12/01/2016 - - 153,556.25 153,556.25 307,112.50
06/01/2017 - - 153,556.25 153,556.25 -
12/01/2017 - - 153,556.25 153,556.25 307,112.50
06/01/2018 - - 153,556.25 153,556.25 -
12/01/2018 1,385,000 5.250% 153,556.25 1,538,556.25 1,692,112.50
06/01/2019 - - 117,200.00 117,200.00 -
12/01/2019 1,460,000 5.250% 117,200.00 1,577,200.00 1,694,400.00
06/01/2020 - - 78,875.00 78,875.00 -
12/01/2020 1,540,000 5.000% 78,875.00 1,618,875.00 1,697,750.00
06/01/2021 - - 40,375.00 40,375.00 -
12/01/2021 1,615,000 5.000% 40,375.00 1,655,375.00 1,695,750.00
6,000,000 3,236,912.50 9,236,912.50 9,236,912.50
6f. ‐ Finance and Information Services Department requests approval of
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ESCROW REQUIREMENTS
City of Renton
Proposed Ref. of New Money Portion of 2001 LTGO
PRELIMINARY NUMBERS
Period Principal
Ending Interest Redeemed Total
06/01/2010 153,556.25 - 153,556.25
12/01/2010 153,556.25 - 153,556.25
06/01/2011 153,556.25 - 153,556.25
12/01/2011 153,556.25 6,000,000.00 6,153,556.25
614,225.00 6,000,000.00 6,614,225.00
6f. ‐ Finance and Information Services Department requests approval of
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SUMMARY OF BONDS REFUNDED
City of Renton
Proposed Ref. of New Money Portion of 2001 LTGO
PRELIMINARY NUMBERS
Maturity Interest Par Call Call
Bond Date Rate Amount Date Price
2001 LTGO & Refunding Bonds (11/1/01):
SERIALS 12/01/2018 5.250% 1,385,000.00 12/01/2011 100.000
12/01/2019 5.250% 1,460,000.00 12/01/2011 100.000
TERM2021 12/01/2021 5.000% 3,155,000.00 12/01/2011 100.000
6,000,000.00
6f. ‐ Finance and Information Services Department requests approval of
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ESCROW STATISTICS
City of Renton
Proposed Ref. of New Money Portion of 2001 LTGO
PRELIMINARY NUMBERS
Modified Yield to Yield to Perfect Value of
Total Duration Receipt Disbursement Escrow Negative Cost of
Escrow Cost (years) Date Date Cost Arbitrage Dead Time
Global Proceeds Escrow:
6,560,850.34 1.493 0.554716% 0.554716% 6,310,818.41 249,867.61 164.32
6,560,850.34 6,310,818.41 249,867.61 164.32
Delivery date 05/19/2010
Arbitrage yield 3.236801%
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ESCROW DESCRIPTIONS
City of Renton
Proposed Ref. of New Money Portion of 2001 LTGO
PRELIMINARY NUMBERS
Type of Type of Maturity First Int Par Max
Security SLGS Date Pmt Date Amount Rate Rate
May 19, 2010:
SLGS Certificate 12/01/2010 12/01/2010 134,769 0.190% 0.190%
SLGS Note 06/01/2011 12/01/2010 136,150 0.330% 0.330%
SLGS Note 12/01/2011 12/01/2010 6,136,374 0.560% 0.560%
6,407,293
SLGS Summary
SLGS Rates File 04MAR10
Total Certificates of Indebtedness 134,769.00
Total Notes 6,272,524.00
Total original SLGS 6,407,293.00
6f. ‐ Finance and Information Services Department requests approval of
an ordinance authorizing the issuance of bonds in the amount of Page 57 of 138
May 19, 2010
City of Renton, Washington
Seattle-Northwest Securities Corporation
Seattle, Washington
Re:City of Renton, Washington Limited Tax General Obligation Refunding
Bonds, 2010 — $_________
Ladies and Gentlemen:
We have acted as bond counsel to the City of Renton, Washington (the “City”), and
have examined a certified transcript of the proceedings taken in the matter of the issuance by
the City of its Limited Tax General Obligation Refunding Bonds, 2010 (the “Bonds”), dated
as of their date of initial delivery, in the aggregate principal amount of $________, issued for
the purpose of refunding certain outstanding limited tax general obligation bonds of the City
and paying costs of issuance of the Bonds. The Bonds are issued pursuant to Ordinance
No. ____ passed by the City Council of the City on April 5, 2010 (the “Bond Ordinance”).
Capitalized terms used in this opinion which are not otherwise defined shall have the
meanings given to such terms in the Bond Ordinance.
The Bonds are subject to redemption prior to their stated maturities as provided in the
Bond Ordinance and in the Bond Purchase Agreement.
Regarding questions of fact material to our opinion, we have relied on representations
of the City in the Bond Ordinance and in the certified proceedings and on other certifications
of public officials and others furnished to us without undertaking to verify the same by
independent investigation.
Based on the foregoing, we are of the opinion that, under existing law:
1.The Bonds have been legally issued and constitute valid and binding general
obligations of the City, except to the extent that the enforcement of the rights and remedies of
the holders and owners of the Bonds may be limited by laws relating to bankruptcy,
insolvency, moratorium, reorganization or other similar laws of general application affecting
the rights of creditors, by the application of equitable principles and the exercise of judicial
discretion.
2.The Bond Ordinance is a legal, valid and binding obligation of the City, has
been duly authorized, executed and delivered and is enforceable in accordance with its terms,
except to the extent that enforcement may be limited by laws relating to bankruptcy,
insolvency, moratorium, reorganization or other similar laws of general application affecting
the rights of creditors, by the application of equitable principles and the exercise of judicial
discretion.
6f. ‐ Finance and Information Services Department requests approval of
an ordinance authorizing the issuance of bonds in the amount of Page 58 of 138
City of Renton, Washington
Seattle-Northwest Securities Corporation
May 19, 2010
Page 2
3.Both principal of and interest on the Bonds are payable out of annual levies of
ad valorem taxes to be made upon all of the taxable property within the City within and as
part of the tax levy permitted to the City without a vote of the electorate and in amounts
which, together with other available funds, will be sufficient to pay such principal and
interest as the same shall become due.
4.Interest on the Bonds is excludable from gross income for federal income tax
purposes and is not an item of tax preference for purposes of the federal alternative minimum
tax imposed on individuals and corporations; however, interest on the Bonds is taken into
account in determining adjusted current earnings for the purpose of computing the alternative
minimum tax imposed on certain corporations. The opinion set forth in the preceding
sentence is subject to the condition that the City comply with all requirements of the Internal
Revenue Code of 1986, as amended (the “Code”), that must be satisfied subsequent to the
issuance of the Bonds in order that the interest thereon be, and continue to be, excludable
from gross income for federal income tax purposes. The City has covenanted to comply with
all applicable requirements. Failure to comply with certain of such covenants may cause
interest on the Bonds to be included in gross income for federal income tax purposes
retroactively to the date of issuance of the Bonds.
The City has designated the Bonds as “qualified tax-exempt obligations” within the
meaning of Section 265(b)(3) of the Code.
Except as expressly stated above, we express no opinion regarding any other federal
or state income tax consequences of acquiring, carrying, owning or disposing of the Bonds.
Owners of the Bonds should consult their tax advisors regarding the applicability of any
collateral tax consequences of owning the Bonds, which may include original issue discount,
original issue premium, purchase at a market discount or at a premium, taxation upon sale,
redemption or other disposition, and various withholding requirements.
This opinion is given as of the date hereof, and we assume no obligation to update,
revise or supplement this opinion to reflect any facts or circumstances that may hereafter
come to our attention or any changes in law that may hereafter occur.
Very truly yours,
K&L GATES LLP
DG:CF
K:\2037929\00008\20358_DG\20358L210P
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CITY OF RENTON, WASHINGTON
LIMITED TAX GENERAL OBLIGATION REFUNDING BONDS, 2010
ORDINANCE NO. _______
AN ORDINANCE OF THE CITY OF RENTON, WASHINGTON,
providing for the issuance and sale of limited tax general
obligation refunding bonds of the City in the aggregate
principal amount of not to exceed $[6,150,000] to provide
funds for the purpose of refunding certain limited tax general
obligation bonds of the City; authorizing the appointment of
an escrow agent and execution of an escrow agreement; and
delegating certain authority to approve the final terms of the
bonds.
PASSED: April 5, 2010
PREPARED BY:
K&L Gates LLP
Seattle, Washington
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TABLE OF CONTENTS*
Page
Section 1.Definitions 4
Section 2.Authorization of Bonds 8
Section 3.Description of Bonds 9
Section 4.Registration, Transfer and Payment of Bonds 9
Section 5.Redemption and Purchase of Bonds 14
Section 6.Form of the Bonds 18
Section 7.Execution of the Bonds 20
Section 8.Refunding Procedures 21
Section 9.Tax Covenants 23
Section 10.Bond Fund; Provision for Payment 26
Section 11.Defeasance 27
Section 12.Sale of the Bonds 27
Section 13.Bond Insurance 30
Section 14.Continuing Disclosure Undertaking 30
Section 15.Lost, Stolen or Destroyed Bonds 34
Section 16.Severability 34
Section 17.Effective Date of Ordinance 34
EXHIBIT A Form of Escrow Deposit Agreement
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CITY OF RENTON, WASHINGTON
ORDINANCE NO. _____
AN ORDINANCE OF THE CITY OF RENTON, WASHINGTON,
providing for the issuance and sale of limited tax general
obligation refunding bonds of the City in the aggregate
principal amount of not to exceed $[6,150,000] to provide
funds for the purpose of refunding certain limited tax general
obligation bonds of the City; authorizing the appointment of
an escrow agent and execution of an escrow agreement; and
delegating certain authority to approve the final terms of the
bonds.
WHEREAS, pursuant to Ordinance No. 4922 (the “2001 Bond Ordinance”), passed on
October 22, 2001, the City of Renton, Washington (the “City”) issued its Limited Tax General
Obligation and Refunding Bonds, 2001, dated November 1, 2001 (the “2001 Bonds”), currently
outstanding in the aggregate principal amount of $18,700,000, and maturing in remaining
principal amounts and bearing interest as follows:
Maturity
(December 1)
Principal
Amount
Interest
Rate
2010 $
1,350,000
4.00%
2011 1,400,000 4.00
2012 1,455,000 5.25
2013 1,530,000 5.25
2014 1,610,000 5.25
2015 1,695,000 5.25
2016 1,785,000 5.25
2017 1,875,000 5.25
2018 1,385,000 5.25
2019 1,460,000 5.25
2021 3,155,000 5.00
; and
WHEREAS, the 2001 Bonds maturing on and after December 1, 2012 are callable for
redemption on or after December 1, 2011, in whole at any time or in part on any interest
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payment date, at a price of par plus accrued interest to the date of redemption; and
WHEREAS, as a result of changed market conditions, it appears that a debt service
savings may be obtained by refunding a portion of the callable 2001 Bonds through the
issuance of limited tax general obligation refunding bonds of the City in the aggregate principal
amount of not to exceed $[6,150,000] (the “Bonds”);
NOW, THEREFORE, THE CITY COUNCIL OF THE CITY OF RENTON, WASHINGTON, DOES
ORDAIN AS FOLLOWS:
Section 1.Definitions. As used in this ordinance, the following words shall have the
following meanings:
Acquired Obligations means the Government Obligations acquired by the City under the
terms of this ordinance and the Escrow Agreement to effect the defeasance and refunding of
the Refunded Bonds.
Beneficial Owner means any person that has or shares the power, directly or indirectly
to make investment decisions concerning ownership of any Bonds (including persons holding
Bonds through nominees, depositories or other intermediaries).
Bond Fund means the City of Renton Limited Tax General Obligation Bond Debt Service
Fund described in 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 all or a portion of the
Bonds as provided therein.
Bond Purchase Agreement 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
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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 means the City of Renton, Washington Limited Tax General Obligation Refunding
Bonds, 2010, if any, issued pursuant to this ordinance.
City means the City of Renton, Washington, a municipal corporation 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.
Designated City Representative means the Mayor, the Chief Administrative Officer, and
the Finance Director of the City and any successor to the functions of such offices.
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
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pursuant to Section 4 hereof.
Escrow Agreement means the Escrow Deposit Agreement between the City and the
Escrow Agent to be dated as of the date of closing and delivery of the Bonds, substantially in
the form attached hereto as Exhibit A.
Escrow Agent means the financial institution selected by the Finance Director as
provided in Section 8 of this ordinance.
Finance Director shall mean the City’s Finance and Information Services Administrator
or the successor to such officer.
Government Obligations means 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 City 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 successor to its
functions.
Net Proceeds, when used with reference to the Bonds, means 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.
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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.
RCW means the Revised Code of Washington.
Refunded Bonds mean all or a portion of the callable 2001 Bonds selected as Refunded
Bonds by the Designated City Representative pursuant to Section 8.
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.
Savings Target means a dollar amount equal to at least ____ percent (__%) of the
outstanding principal of the Refunded Bonds.
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2001 Bond Ordinance means Ordinance No. 4922 passed by the City Council on October
22, 2001, authorizing the issuance of the 2001 Bonds.
2001 Bonds mean the outstanding “City of Renton, Limited Tax General Obligation and
Refunding Bonds, 2001” issued pursuant to the 2001 Bond Ordinance.
Underwriter means Seattle-Northwest Securities Corporation, Seattle, Washington.
Interpretation. In this ordinance, unless the context otherwise requires:
(a)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;
(b)Words of the masculine gender shall mean and include correlative words of the
feminine and neuter genders and words importing the singular number shall mean and include
the plural number and vice versa;
(c)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;
(d)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
(e)All references herein to “articles,” “sections” and other subdivisions or clauses
are to the corresponding articles, sections, subdivisions or clauses hereof.
Section 2.Authorization of Bonds. The City is hereby authorized to issue limited tax
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general obligation refunding bonds (the “Bonds”) in an aggregate principal amount of not to
exceed $[6,150,000] for the purpose of providing the funds necessary to refund the Refunded
Bonds and pay all or a portion of the costs incidental to the foregoing and to the issuance of the
Bonds.
Section 3.Description of Bonds. The Bonds shall be general obligations of the City;
shall be designated the “City of Renton, Washington, Limited Tax General Obligation Refunding
Bonds, 2010,” with any additional series designation, if necessary; shall be dated as of their
initial date of delivery; shall be fully registered as to both principal and interest; shall be in the
denomination of $5,000 each, or any integral multiple thereof within a maturity, 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; shall bear interest from their date, payable semiannually on the interest payment
dates set forth in the Bond Purchase Agreement; and shall mature on December 1 in the years
and principal amounts set forth and approved in the Bond Purchase Agreement executed by the
Designated City Representative pursuant to Section 12 of this ordinance.
Section 4.Registration, Transfer and Payment of Bonds.
(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
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Bond Registrar appointed by the Finance Director. No resignation or removal of the Bond
Registrar shall be effective until a successor shall have been appointed and until the successor
Bond Registrar shall have accepted the duties of the Bond Registrar hereunder. The Bond
Registrar is authorized, on behalf of the City, to authenticate and deliver Bonds transferred or
exchanged in accordance with the provisions of such Bonds and this ordinance and to carry out
all of the Bond Registrar’s powers and duties under this ordinance. The Bond Registrar shall be
responsible for its representations contained in the Certificate of Authentication of the Bonds.
(b)Registered Ownership. The City and the Bond Registrar, each in its discretion,
may deem and treat the Registered Owner of each Bond as the absolute owner thereof for all
purposes (except as provided in Section 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
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Bonds, any notice which is permitted or required to be given to Registered Owners under this
ordinance (except such notices as shall be required to be given by the City to the Bond Registrar
or to DTC (or any successor depository)), or any consent given or other action taken by DTC (or
any successor depository) as the Registered Owner. For so long as any Bonds are held in
fully-immobilized form hereunder, DTC or its successor depository shall be deemed to be the
Registered Owner for all purposes hereunder, and all references herein to the Registered
Owners shall mean DTC (or any successor depository) or its nominee and shall not mean the
owners of any beneficial interest in such Bonds.
If any Bond shall be duly presented for payment and funds have not been duly provided
by the City on such applicable date, then interest shall continue to accrue thereafter on the
unpaid principal thereof at the rate stated on such Bond until it is paid.
(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
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discontinue the system of book entry transfers through DTC or its successor (or any substitute
depository or its successor), the Finance Director may hereafter appoint a substitute depository.
Any such substitute depository shall be qualified under any applicable laws to provide the
services proposed to be provided by it.
(3)In the case of any transfer pursuant to clause (A) or (B) of subsection (1)
above, the Bond Registrar shall, upon receipt of all outstanding Bonds, together with a written
request on behalf of the Finance Director, issue a single new Bond for each maturity then
outstanding, registered in the name of such successor or such substitute depository, or their
nominees, as the case may be, all as specified in such written request of the Finance Director.
(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 member of, or in any other capacity with respect to, any
committee formed to protect the right of the Registered Owners of Bonds.
(g)Registration Covenant. The City covenants that, until all Bonds have been
surrendered and canceled, it will maintain a system for recording the ownership of each Bond
that complies with the provisions of Section 149 of the Code.
(h)Place and Medium of Payment. Both principal of and interest on the Bonds shall
be payable in lawful money of the United States of America. Interest on the Bonds shall be
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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 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 continental 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 and Purchase of Bonds.
(a)Mandatory Redemption of Term Bonds and Optional Redemption, if any. The
Bonds may be called for redemption prior to scheduled maturity under terms approved by the
Designated City Representative in the Bond Purchase Agreement pursuant to Section 12 of this
ordinance.
(b)Purchase of Bonds. The City reserves the right to purchase any of the Bonds
offered to it at any time at a price deemed reasonable by the City. Bonds purchased by the City
shall be cancelled.
(c)Selection of Bonds for Redemption. Except to the extent that another method is
prescribed in the Bond Purchase Agreement, 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
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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 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
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
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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.
In the case of an optional redemption, the notice of redemption may state that the City
retains the right to rescind that notice on or prior to the scheduled redemption date, and that
notice and optional redemption shall be of no effect to the extent that the City gives notice to
the affected Registered Owners at any time on or prior to the scheduled redemption date that
the City is rescinding the redemption notice in whole or in part. Any Bonds subject to a
rescinded notice of redemption are to remain outstanding, and the rescission will not constitute
a default hereunder.
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.
On or prior to any redemption date, the City shall deposit with the Bond Registrar an
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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 and destroyed 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 35 days before the redemption date to each party entitled to receive
notice pursuant to Section 14, the Insurer, if any, and to the Underwriter and with such
additional information as the City shall deem appropriate, but such mailings shall not be a
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condition precedent to the redemption of such Bonds.
(4)Amendment of Notice Provisions. The foregoing notice provisions of this
Section 4, including but not limited to the information to be included in redemption notices and
the persons designated to receive notices, may be amended by additions, deletions and
changes in order to maintain compliance with duly promulgated regulations and
recommendations regarding notices of redemption of municipal securities.
Section 6.Form of the Bonds. The Bonds shall be in substantially the following
form:
[DTC LANGUAGE]
[STATEMENT OF INSURANCE]
UNITED STATES OF AMERICA
NO. $____________
STATE OF WASHINGTON
CITY OF RENTON, WASHINGTON
LIMITED TAX GENERAL OBLIGATION REFUNDING BOND, 2010
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 ___________, 2010, 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, 2010, and semiannually thereafter on the first days of each succeeding June and
December. Both principal of and interest on this bond are payable in lawful money of the
United States of America. The fiscal agency of the State of Washington has been appointed by
the City as the authenticating agent, paying agent and registrar for the bonds of this issue (the
“Bond Registrar”). For so long as the bonds of this issue are held in fully immobilized form,
payments of principal and interest thereon shall be made as provided in accordance with the
operational arrangements of The Depository Trust Company (“DTC”) referred to in the Blanket
Issuer Letter of Representations (the “Letter of Representations”) from the City to DTC.
The bonds of this issue are issued under and in accordance with the provisions of the
Constitution and applicable statutes of the State of Washington and Ordinance No. ________
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duly passed by the City Council on April 5, 2010 (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
$[6,150,000] and is issued pursuant to the Bond Ordinance to refund certain outstanding
limited tax general obligation bonds of the City and to pay costs of issuance.
The bonds of this issue are subject to redemption prior to their scheduled maturities as
provided in the Bond Ordinance and in the Bond Purchase Agreement.
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 been designated as “qualified tax-exempt obligations” for
purposes of Section 265(b) of the Internal Revenue Code of 1986. The bonds of this issue are
not private activity bonds.
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.
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 City Clerk and the seal of the
City imprinted, impressed or otherwise reproduced hereon as of this ____ day of ___________,
2010.
[SEAL]CITY OF RENTON, WASHINGTON
By /s/ manual or facsimile
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Mayor
ATTEST:
/s/ manual or facsimile
City Clerk
The Bond Registrar’s Certificate of Authentication on the Bonds shall be in substantially
the following form:
CERTIFICATE OF AUTHENTICATION
This bond is one of the bonds described in the within mentioned Bond Ordinance and is
one of the Limited Tax General Obligation Refunding Bonds, 2010 of the City of Renton,
Washington, dated ____________, 2010.
WASHINGTON STATE FISCAL AGENCY, as
Bond Registrar
By
Section 7.Execution of the 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
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
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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.Refunding Procedures.
(a)Designation of Refunded Bonds. All or some of the 2001 Bonds maturing on and
after December 1, 2012 as outlined in the recitals to this ordinance may be refunded and
refinanced with the proceeds of the Bonds authorized by this ordinance. The Designated City
Representative may select some or all of the callable 2001 Bonds and designate those bonds as
the “Refunded Bonds” at or prior to the time of sale of the Bonds.
(b)Creation of Refunding Account. A special account is hereby authorized to be
created by the Finance Director, which account is to be drawn for the sole purpose of paying (or
purchasing Government Obligations, which obligations so purchased, are herein called
“Acquired Obligations”) maturing in such amounts and at such times as to pay) the principal of
and premium, if any, and interest on the Refunded Bonds. The special account shall be held as
a trust fund for the benefit of the owners of the Refunded Bonds, wholly segregated from all
other funds and securities on deposit with the Finance Director. The Finance Director shall not
allow the assets or amounts on deposit for the benefit of the Refunded Bonds to be
commingled with any other funds or securities of the City. The Finance Director shall cause the
assets and amounts on deposit in such special account to be held and disposed of only as set
forth in this section.
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(c)Application of Bond Proceeds. A portion of the Net Proceeds of the Bonds
(exclusive of any amounts designated by the Designated City Representative to be used to pay
costs of issuance of the Bonds), together with other available funds of the City in the amount
specified by the Designated City Representative, if any, shall be applied at the direction of the
Designated City Representative to purchase the Acquired Obligations to be used to redeem the
Refunded Bonds on their redemption date.
(d)Defeasance of Refunded Bonds. The Net Proceeds of the Bonds so deposited
shall be utilized immediately upon receipt thereof to redeem Refunded Bonds or to purchase
the Government Obligations specified by the Designated City Representative and to maintain
such necessary beginning cash balance to defease the Refunded Bonds and to discharge the
other obligations of the City relating thereto under the 2001 Bond Ordinance, by providing for
the payment of the interest on the Refunded Bonds to the date fixed for redemption and the
redemption price on the redemption date for the Refunded Bonds. When the final transfers
have been made for the payment of such redemption price and interest on the Refunded
Bonds, any balance then remaining shall be used for the purposes specified by the Designated
City Representative.
(e)Redemption of Refunded Bonds. The Council authorizes the Designated City
Representative to call the Refunded Bonds that are callable for redemption on the redemption
date specified by the Designated City Representative in accordance with the 2001 Bond
Ordinance.
Said defeasance and call for redemption of the Refunded Bonds shall be irrevocable
after the deposit of the proceeds of the Bonds as described in Section 8(c).
The Designated City Representative is hereby authorized and directed to provide for the
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giving of irrevocable notice of the redemption of the callable Refunded Bonds in accordance
with the terms of the 2001 Bond Ordinance. The Finance Director is authorized and directed to
provide whatever assistance is necessary to accomplish such redemption and the giving of
notice therefor.
(f)Escrow Agent and Escrow Agreement. The Designated City Representative is
hereby authorized and directed to solicit proposals from and select a financial institution to
serve as the Escrow Agent for the Refunded Bonds (the “Escrow Agent”). A beginning cash
balance, if any, and Acquired Obligations shall be deposited irrevocably with the Escrow Agent
in an amount sufficient to defease the Refunded Bonds. The proceeds of the Bonds remaining
in the Refunding Account after acquisition of the Acquired Obligations and provision for the
necessary beginning cash balance shall be utilized to pay expenses of the acquisition and
safekeeping of the Acquired Obligations and expenses of the issuance of the Bonds. The
Designated City Representative or the Finance Director is authorized to execute and deliver to
the Escrow Agent an Escrow Agreement substantially in the form attached hereto as Exhibit A,
with such changes or modifications as the Designated City Representative or the Finance
Director, with the advice of bond counsel to the City, consider necessary or advisable.
The City hereby irrevocably sets aside for and pledges to the payment of the Refunded
Bonds the moneys and obligations to be deposited with the Escrow Agent pursuant to the
Escrow Agreement to accomplish the plan of refunding and defeasance of the Refunded Bonds
set forth herein and in the Escrow Agreement. When all of the Refunded Bonds shall have been
redeemed and retired, the Designated City Representative or Finance Director may cause any
remaining money to be transferred to the Bond Fund for the purposes set forth below.
Section 9.Tax Covenants. The City covenants that it will not take or permit to be
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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 sale of the Bonds or any other funds of the City which may be deemed to be proceeds of the
Bonds pursuant to Section 148 of the Code and the regulations promulgated thereunder which,
if such use had been reasonably expected on the dates of delivery of the Bonds to the initial
purchasers thereof, would have caused the Bonds to be treated as “arbitrage bonds” within the
meaning of such term as used in Section 148 of the Code.
The City will comply with the requirements of Section 148 of the Code and the
applicable regulations thereunder throughout the term of the Bonds.
(b)Private Person Use Limitation for Bonds. The City covenants that for as long as
the Bonds are outstanding, it will not permit: (i) more than 10% of the Net Proceeds of the
Bonds to be allocated to any Private Person Use; and (ii) more than 10% of the principal or
interest payments on the Bonds in a Bond Year to be directly or indirectly 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 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: (i) more than five percent of the Net Proceeds of the
Bonds are allocable to any Private Person Use; and (ii) more than five percent of the principal or
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interest payments on the Bonds in a Bond Year are (under the terms of this ordinance or any
underlying arrangement) directly or indirectly 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 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,
any Private Person Use of the Projects or Private Person Use payments that is in excess of the
five percent limitations described above 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 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 project(s) to which the Private Person Use of
such portion of the projects refunded by the proceeds of the Bonds relate. The City further
covenants that it will comply with any limitations on the use of the projects refinanced by the
proceeds of the Bonds by other than state and local governmental users that are necessary, in
the opinion of its bond counsel, to preserve the tax exemption of the interest on the Bonds.
(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)Designation under Section 265(b). The City hereby designates the Bonds as
“qualified tax-exempt obligations” within the meaning of Section 265(b)(3) of the Code. The
City does not anticipate issuing more than $30,000,000 of tax-exempt obligations during 2010
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(excluding obligations permitted by the Code to be excluded for purposes of the City’s
qualification as a qualified small issuer).
Section 10.Bond Fund; Provision for Payment. The City is hereby authorized to
establish a fund to be used for the payment of debt service the Bonds, designated as the “City of
Renton Limited Tax General Obligation Bond Debt Service Fund” (the “Bond Fund”). No later
than the date each payment of principal of and/or interest on the Bonds matures or 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 temporarily be
deposited in legal investments for City funds.
The City hereby irrevocably covenants and agrees for as long as any of the Bonds are
outstanding and unpaid that each year it will include in its budget and levy an ad valorem tax
upon all the property within the City subject to taxation in an amount that will be sufficient,
together with all other revenues and money of the City legally available for such purposes, to
pay the principal of and interest on the Bonds 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 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 as the same shall become
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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 Bond Fund or in another special
account, cash or noncallable Government Obligations, or any combination of cash and/or
noncallable Government Obligations, in amounts and maturities which, together with the
known earned income therefrom, are sufficient to redeem or pay and retire such Bond in
accordance with its terms and to pay when due the interest and redemption premium, if any,
thereon, and such cash and/or noncallable Government Obligations are irrevocably set aside
and pledged for such purpose, then no further payments need be made into the Bond Fund for
the payment of the principal of and interest on such Bond. The owner of a Bond so provided
for shall cease to be entitled to any lien, benefit or security of this ordinance except the right to
receive payment of principal, premium, if any, and interest from the Bond Fund or such special
account, and such Bond shall be deemed to be not outstanding under this ordinance.
The City shall give written notice of defeasance to the owners of all Bonds so provided
for within 30 days of the defeasance and to each party entitled to receive notice in accordance
with Section 14 of this ordinance.
Section 12.Sale of the Bonds. The Bonds shall be sold by negotiated sale to the
Underwriter pursuant to the terms of the Bond Purchase Agreement. The Designated City
Representative is hereby authorized to negotiate terms for the purchase of the Bonds and execute
the Bond Purchase Agreement, with such terms as are approved the Designated City
Representative pursuant to this section and consistent with this ordinance. 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
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Council has determined that it would be in the best interest of the City to delegate to the
Designated City Representative for a limited time the authority to determine whether to proceed
with the refunding of the Refunded Bonds, to designate which of the callable 2001 Bonds shall
be the Refunded Bonds, and to approve the final interest rates, maturity dates, aggregate
principal amount, redemption rights and principal amounts of each maturity of the Bonds. The
Designated City Representative is hereby authorized to determine whether to proceed with the
refunding of the Refunded Bonds if and to the extent that the aggregate savings to be realized as
a result of the refunding of the Refunded Bonds (i.e., the present value of (i) the aggregate debt
service on the Refunded Bonds minus (ii) the aggregate debt service on the Refunding Bonds,
after payment of all costs of issuance of the Bonds), exceed the Savings Target. The Designated
City Representative is further authorized to approve the final interest rates, maturity dates,
aggregate principal amount, and principal amounts of each maturity of the Bonds in the
manner provided hereafter so long as (i) the aggregate principal amount of all Bonds does not
exceed $[6,150,000]; and (ii) the true interest cost for the Bonds does not exceed ______%.
In determining whether or not to proceed with bond insurance and determining the
final interest rates, aggregate principal amounts, principal maturities and redemption rights, the
Designated City Representative shall take into account those factors that, in such individual’s
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, the Designated City
Representative is hereby authorized to execute the final form of the Bond Purchase Agreement,
upon the Designated City Representative’s designation of the Refunded Bonds and approval of
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the final interest rates, aggregate principal amount, principal maturities and redemption rights
set forth therein. Following the execution of the Bond Purchase Agreement, the Designated
City Representative 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 City Representative by this section shall expire 120 days after the date of approval
of this ordinance. If a Bond Purchase Agreement for the Bonds has not been executed within
120 days after the date of final approval 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 agreement or establishing terms and conditions for the authority
delegated under this ordinance.
Upon the passage and approval of this ordinance, the proper officials of the City
including the Designated City Representative, are authorized and directed to undertake all
actions necessary for the prompt execution and delivery of the Bonds to the Underwriter
thereof and further to execute all closing certificates and documents required to effect the
closing and delivery of the Bonds in accordance with the terms of the Bond Purchase
Agreement.
The Finance Director is authorized to ratify and to approve for purposes of the Rule, on
behalf of the City, the preliminary Official Statement and Official Statement (as defined in the
Bond Purchase Agreement) relating to the issuance and sale of the Bonds and the distribution
of the preliminary Official Statement and Official Statement pursuant thereto with such
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changes, if any, as may be deemed by him to be appropriate. The preliminary Official
Statement for the Bonds is hereby deemed final for the purposes of the Rule.
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 in response to a
solicitation, the Finance Director may select the proposal having the lowest cost and resulting in
an overall lower interest cost with respect to the Bonds to be insured. The Finance Director may
execute a commitment received from the Insurer selected by the Finance Director. The Council
further authorizes 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.Continuing Disclosure Undertaking.
(a)Contract/Undertaking. This section constitutes the City’s written undertaking for
the benefit of the owners of the Bonds as required by Section (b)(5) of the Rule.
(b)Financial Statements/Operating Data. The City agrees to provide or cause to be
provided to the Municipal Securities Rulemaking Board (“MSRB”), the following annual financial
information and operating data for the prior fiscal year (commencing in 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);
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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.
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)Material Events. The City agrees to provide or cause to be provided, in a timely
manner to the MSRB notice of the occurrence of any of the following events with respect to the
Bonds, if material:
·Principal and interest payment delinquencies;
·Non-payment related defaults;
·Unscheduled draws on debt service reserves reflecting financial difficulties;
·Unscheduled draws on credit enhancements reflecting financial difficulties;
·Substitution of credit or liquidity providers, or their failure to perform;
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·Adverse tax opinions or events affecting the tax-exempt status of the Bonds;
·Modifications to the rights of Bond owners;
·Bond calls (optional, contingent or unscheduled Bond calls other than scheduled
sinking fund redemptions for which notice is given pursuant to Exchange Act
Release 34-23856);
·Defeasances;
·Release, substitution or sale of property securing repayment of the Bonds; and
·Rating changes.
Solely for purposes of disclosure, and not intending to modify this undertaking, the City
advises that no debt service reserves, [credit enhancement] or property secures payment of the
Bonds.
(d)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.
(e)Emma; Format for Filings with the MSRB. Until otherwise designated by the
MSRB or the Commission, any information or notices submitted to the MSRB in compliance
with the Rule are to be submitted through the MSRB’s Electronic Municipal Market Access
system (“EMMA”), currently located at www.emma.msrb.org. 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.
(f)Termination/Modification. The City’s obligations to provide annual financial
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information and notices of material 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, (i) notice of such change shall be given in the same
manner as for a material event under Subsection (c) and (ii) the annual report for the year in
which the change is made shall present a comparison (in narrative form and also, if feasible, in
quantitative form) between the financial statements as prepared on the basis of the new
accounting principles and those prepared on the basis of the former accounting principles.
(g)Bond Owner’s Remedies Under This Section. The right of any bondowner or
beneficial owner of Bonds to enforce the provisions of this section shall be limited to a right to
obtain specific enforcement of the City’s obligations under this section, and any failure by the
City to comply with the provisions of this undertaking shall not be an event of default with
respect to the Bonds. For purposes of this section, “beneficial owner” means any person who
has the power, directly or indirectly, to vote or consent with respect to, or to dispose of
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ORDINANCE NO. _______
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ownership of, any Bonds, including persons holding Bonds through nominees or depositories.
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. 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.
Section 17.Effective Date of Ordinance. This ordinance shall be effective upon its
passage, approval, and five (5) days after publication.
PASSED BY THE CITY COUNCIL this 5th day of April, 2010.
Bonnie I. Walton, City Clerk
APPROVED BY THE MAYOR this 5th day of April, 2010.
Denis Law, Mayor
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Approved as to form:
K&L Gates LLP
Bond Counsel
Date of Publication: ___________________
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EXHIBIT A
ESCROW DEPOSIT AGREEMENT
CITY OF RENTON, WASHINGTON
LIMITED TAX GENERAL OBLIGATION REFUNDING BONDS, 2010
THIS ESCROW AGREEMENT, dated as of __________, 2010 (herein, together with any
amendments or supplements hereto, called the “Agreement”) is entered into by and between
the City of Renton, Washington (herein called the “City”) and ______________,
______________, as escrow agent (herein, together with any successor in such capacity, called
the “Escrow Agent”). The notice addresses of the City and the Escrow Agent are shown on
Exhibit A attached hereto and made a part hereof.
WITNESSETH:
WHEREAS, the City heretofore has issued and there presently remain outstanding the
obligations described in Exhibit B attached hereto (the “Refunded Bonds”); and
WHEREAS, pursuant to Ordinance No. ____ passed on April 5, 2010 (the “Bond
Ordinance”), the City has determined to issue its Limited Tax General Obligation Refunding
Bonds, 2010 (the “Bonds”); and
WHEREAS, a portion of the proceeds of the Bonds are being used for the purpose of
providing funds to pay the costs of refunding the Refunded Bonds; and
WHEREAS, __________________, certified public accountants, has prepared a
verification report which is dated _____________, 2010 (the “Verification Report”) relating to
the source and use of funds available to accomplish the refunding of the Refunded Bonds, the
investment of such funds and the adequacy of such funds and investments to provide for the
payment of the debt service due on the Refunded Bonds; and
WHEREAS, pursuant to the Bond Ordinance, the Refunded Bonds have been designated
for redemption prior to their scheduled maturity dates and, after provision is made for such
redemption, the Refunded Bonds will come due in such years, bear interest at such rates, and
be payable at such times and in such amounts as are set forth in Exhibit C attached hereto and
made a part hereof; and
WHEREAS, when Escrowed Securities have been deposited with the Escrow Agent for
the payment of all principal and interest of the Refunded Bonds when due, then the Refunded
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Bonds shall no longer be regarded as outstanding except for the purpose of receiving payment
from the funds provided for such purpose; and
WHEREAS, the issuance, sale, and delivery of the Refunding Bonds have been duly
authorized to be issued, sold, and delivered for the purpose of obtaining the funds required to
provide for the payment of the principal of, interest on and redemption premium (if any) on the
Refunded Bonds when due as shown on Exhibit C attached hereto;
NOW, THEREFORE, in consideration of the mutual undertakings, promises and
agreements herein contained, the sufficiency of which hereby are acknowledged, and to secure
the full and timely payment of principal of and the interest on the Refunded Bonds, the City and
the Escrow Agent mutually undertake, promise and agree for themselves and their respective
representatives and successors, as follows:
Article Definitions
Section Definitions.
Unless the context clearly indicates otherwise, the following terms shall have the
meanings assigned to them below when they are used in this Agreement:
Escrow Fund means the fund created by this Agreement to be established, held and
administered by the Escrow Agent pursuant to the provisions of this Agreement.
Escrowed Securities means the noncallable Government Obligations described in
Exhibit D attached to this Agreement, or cash or other noncallable obligations substituted
therefor pursuant to Section 4.2 of this Agreement.
Government Obligations means direct, noncallable (a) United States Treasury
Obligations, (b) United States Treasury Obligations - State and Local Government Series,
(c) non-prepayable obligations which are unconditionally guaranteed as to full and timely
payment of principal and interest by the United States of America or (d) REFCORP debt
obligations unconditionally guaranteed by the United States.
Paying Agent means the fiscal agency of the State of Washington, as the paying agent
for the Refunded Bonds.
Refunding Bonds means that portion of the Bonds authorized under the Bond
Ordinance for the purpose of refunding the Refunded Bonds.
Section Other Definitions.
The terms “Agreement,” “City,” “Escrow Agent,” “Bond Ordinance,” “Verification
Report,” “Refunded Bonds,” and “Bonds” when they are used in this Agreement, shall have the
meanings assigned to them in the preamble to this Agreement.
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Section Interpretations.
The titles and headings of the articles and sections of this Agreement have been
inserted for convenience and reference only and are not to be considered a part hereof and
shall not in any way modify or restrict the terms hereof. This Agreement and all of the terms
and provisions hereof shall be liberally construed to effectuate the purposes set forth herein
and to achieve the intended purpose of providing for the refunding of the Refunded Bonds in
accordance with applicable law.
Article Deposit of Funds and Escrowed Securities
Section Deposits in the Escrow Fund.
Concurrently with the sale and delivery of the Refunding Bonds the City shall deposit, or
cause to be deposited, with the Escrow Agent, for deposit in the Escrow Fund, the funds (from
the proceeds of the Refunding Bonds and a cash contribution by the City) sufficient to purchase
the Escrowed Securities and pay costs of issuance described in Exhibit D, and the Escrow Agent
shall, upon the receipt thereof, acknowledge such receipt to the City in writing.
Article Creation and Operation of Escrow Fund
Section Escrow Fund.
The Escrow Agent has created on its books a special trust fund and irrevocable escrow
to be known as the Refunding Account (the “Escrow Fund”). The Escrow Agent hereby agrees
that upon receipt thereof it will deposit to the credit of the Escrow Fund the funds and the
Escrowed Securities described in Exhibit D attached hereto. Such deposit, all proceeds
therefrom, and all cash balances from time to time on deposit therein (a) shall be the property
of the Escrow Fund, (b) shall be applied only in strict conformity with the terms and conditions
of this Agreement, and (c) are hereby irrevocably pledged to the payment of the principal of
and interest on the Refunded Bonds, which payment shall be made by timely transfers of such
amounts at such times as are provided for in Section 3.2 hereof. When the final transfers have
been made for the payment of such principal of and interest on the Refunded Bonds, any
balance then remaining in the Escrow Fund shall be transferred to the City, and the Escrow
Agent shall thereupon be discharged from any further duties hereunder.
Section Payment of Principal and Interest.
The Escrow Agent is hereby irrevocably instructed to transfer to the Paying Agent from
the cash balances from time to time on deposit in the Escrow Fund, the amounts required to
pay the principal of the Refunded Bonds at their respective redemption dates and interest
thereon to such redemption dates in the amounts and at the times shown in Exhibit C attached
hereto.
Section Sufficiency of Escrow Fund.
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The City represents that, based upon the information provided in the Verification
Report, the successive receipts of the principal of and interest on the Escrowed Securities will
assure that the cash balance on deposit from time to time in the Escrow Fund will be at all
times sufficient to provide moneys for transfer to the Paying Agent at the times and in the
amounts required to pay the interest on the Refunded Bonds as such interest comes due and
the principal of the Refunded Bonds as the Refunded Bonds are paid on an optional redemption
date prior to maturity, all as more fully set forth in Exhibit E attached hereto. If, for any reason,
at any time, the cash balances on deposit or scheduled to be on deposit in the Escrow Fund
shall be insufficient to transfer the amounts required by the Paying Agent to make the
payments set forth in Section 3.2. hereof, the City shall timely deposit in the Escrow Fund, from
any funds that are lawfully available therefor, additional funds in the amounts required to make
such payments. Notice of any such insufficiency shall be given promptly as hereinafter
provided, but the Escrow Agent shall not in any manner be responsible for any insufficiency of
funds in the Escrow Fund or the City’s failure to make additional deposits thereto.
Section Trust Fund.
The Escrow Agent or its affiliate, shall hold at all times the Escrow Fund, the Escrowed
Securities and all other assets of the Escrow Fund, wholly segregated from all other funds and
securities on deposit with the Escrow Agent; it shall never allow the Escrowed Securities or any
other assets of the Escrow Fund to be commingled with any other funds or securities of the
Escrow Agent; and it shall hold and dispose of the assets of the Escrow Fund only as set forth
herein. The Escrowed Securities and other assets of the Escrow Fund shall always be
maintained by the Escrow Agent as trust funds for the benefit of the owners of the Refunded
Bonds; and a special account thereof shall at all times be maintained on the books of the
Escrow Agent. The owners of the Refunded Bonds shall be entitled to the same preferred claim
and first lien upon the Escrowed Securities, the proceeds thereof, and all other assets of the
Escrow Fund to which they are entitled as owners of the Refunded Bonds. The amounts
received by the Escrow Agent under this Agreement shall not be considered as a banking
deposit by the City, and the Escrow Agent shall have no right to title with respect thereto
except as a trustee and Escrow Agent under the terms of this Agreement. The amounts
received by the Escrow Agent under this Agreement shall not be subject to warrants, drafts or
checks drawn by the City or, except to the extent expressly herein provided, by the Paying
Agent.
Article Limitation on Investments
Section Investments.
Except for the initial investment in the Escrowed Securities, and except as provided in
Section 4.2 hereof, the Escrow Agent shall not have any power or duty to invest or reinvest any
money held hereunder, or to make substitutions of the Escrowed Securities, or to sell, transfer,
or otherwise dispose of the Escrowed Securities.
Section Substitution of Securities.
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At the written request of the City, and upon compliance with the conditions hereinafter
stated, the Escrow Agent shall utilize cash balances in the Escrow Fund, or sell, transfer,
otherwise dispose of or request the redemption of the Escrowed Securities and apply the
proceeds therefrom to purchase Refunded Bonds or Government Obligations which do not
permit the redemption thereof at the option of the obligor. Any such transaction may be
effected by the Escrow Agent only if (a) the Escrow Agent shall have received a written opinion
from a firm of certified public accountants that such transaction will not cause the amount of
money and securities in the Escrow Fund to be reduced below an amount sufficient to provide
for the full and timely payment of principal of and interest on all of the remaining Refunded
Bonds as they become due, taking into account any optional redemption thereof exercised by
the City in connection with such transaction; and (b) the Escrow Agent shall have received the
unqualified written legal opinion of its bond counsel or tax counsel to the effect that such
transaction will not cause any of the Refunding Bonds or Refunded Bonds to be an “arbitrage
bond” within the meaning of Section 148 of the Internal Revenue Code of 1986, as amended.
Article Application of Cash Balances
Section In General.
Except as provided in Section 2.1, 3.2 and 4.2 hereof, no withdrawals, transfers or
reinvestment shall be made of cash balances in the Escrow Fund. Cash balances shall be held
by the Escrow Agent in United States currency as cash balances as shown on the books and
records of the Escrow Agent and, except as provided herein, shall not be reinvested by the
Escrow Agent; provided, however, a conversion to currency shall not be required (i) for so long
as the Escrow Agent’s internal rate of return does not exceed 20%, or (ii) if the Escrow Agent’s
internal rate of return exceeds 20%, the Escrow Agent receives a letter of instructions,
accompanied by the opinion of nationally recognized bond counsel, approving the assumed
reinvestment of such proceeds at such higher yield.
Article Redemption of Refunded Bonds
Section Call for Redemption.
The City hereby irrevocably calls the Refunded Bonds for redemption on their earliest
redemption dates, as shown in the Verification Report and on Appendix A attached hereto.
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Section Notice of Redemption/Notice of Defeasance.
The Escrow Agent agrees to give a notice of defeasance and a notice of the
redemptionof the Refunded Bonds pursuant to the terms of the Refunded Bonds and in
substantially theforms attached hereto as Appendices A and B attached hereto and as
described on saidAppendices A and B to the Paying Agent for distribution as described
therein. The notice ofdefeasance shall be given immediately following the execution of
this Agreement, and thenotice of redemption shall be given in accordance with the ordinance
authorizing the RefundedBonds. The Escrow Agent hereby certifies that provision
satisfactory and acceptable to theEscrow Agent has been made for the giving of notice of
redemption of the Refunded Bonds.
Article Records and Reports
Section Records.
The Escrow Agent will keep books of record and account in which complete and
accurate entries shall be made of all transactions relating to the receipts, disbursements,
allocations and application of the money and Escrowed Securities deposited to the Escrow Fund
and all proceeds thereof, and such books shall be available for inspection during business hours
and after reasonable notice.
Section Reports.
While this Agreement remains in effect, the Escrow Agent quarterly shall prepare and
send to the City a written report summarizing all transactions relating to the Escrow Fund
during the preceding financial quarter, including, without limitation, credits to the Escrow Fund
as a result of interest payments on or maturities of the Escrowed Securities and transfers from
the Escrow Fund for payments on the Refunded Bonds or otherwise, together with a detailed
statement of all Escrowed Securities and the cash balance on deposit in the Escrow Fund as of
the end of such period.
Article Concerning the Paying Agents and Escrow Agent
Section Representations.
The Escrow Agent hereby represents that it has all necessary power and authority to
enter into this Agreement and undertake the obligations and responsibilities imposed upon it
herein, and that it will carry out all of its obligations hereunder.
Section Limitation on Liability.
The liability of the Escrow Agent to transfer funds for the payment of the principal of
and interest on the Refunded Bonds shall be limited to the proceeds of the Escrowed Securities
and the cash balances from time to time on deposit in the Escrow Fund. Notwithstanding any
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provision contained herein to the contrary, the Escrow Agent shall have no liability whatsoever
for the insufficiency of funds from time to time in the Escrow Fund or any failure of the obligors
of the Escrowed Securities to make timely payment thereon, except for the obligation to notify
the City promptly of any such occurrence.
The recitals herein and in the proceedings authorizing the Refunding Bonds shall be
taken as the statements of the City and shall not be considered as made by, or imposing any
obligation or liability upon, the Escrow Agent.
The Escrow Agent is not a party to the proceedings authorizing the Refunding Bonds or
the Refunded Bonds and is not responsible for nor bound by any of the provisions thereof
(except to the extent that the Escrow Agent may be a place of payment and paying agent
and/or a paying agent/registrar therefor). In its capacity as Escrow Agent, it is agreed that the
Escrow Agent need look only to the terms and provisions of this Agreement.
The Escrow Agent makes no representations as to the value, conditions or sufficiency of
the Escrow Fund, or any part thereof, or as to the title of the City thereto, or as to the security
afforded thereby or hereby, and the Escrow Agent shall not incur any liability or responsibility in
respect to any of such matters.
It is the intention of the parties hereto that the Escrow Agent shall never be required to
use or advance its own funds or otherwise incur personal financial liability in the performance
of any of its duties or the exercise of any of its rights and powers hereunder.
The Escrow Agent shall not be liable for any action taken or neglected to be taken by it
in good faith in any exercise of reasonable care and believed by it to be within the discretion or
power conferred upon it by this Agreement, nor shall the Escrow Agent be responsible for the
consequences of any error of judgment; and the Escrow Agent shall not be answerable except
for its own neglect or willful misconduct, nor for any loss unless the same shall have been
through its negligence or bad faith.
Unless it is specifically otherwise provided herein, the Escrow Agent has no duty to
determine or inquire into the happening or occurrence of any event or contingency or the
performance or failure of performance of the City with respect to arrangements or contracts
with others, with the Escrow Agent’s sole duty hereunder being to safeguard the Escrow Fund,
to dispose of and deliver the same in accordance with this Agreement. If, however, the Escrow
Agent is called upon by the terms of this Agreement to determine the occurrence of any event
or contingency, the Escrow Agent shall be obligated, in making such determination, only to
exercise reasonable care and diligence, and in event of error in making such determination the
Escrow Agent shall be liable only for its own willful misconduct or its negligence. In determining
the occurrence of any such event or contingency the Escrow Agent may request from the City
or any other person such reasonable additional evidence as the Escrow Agent in its discretion
may deem necessary to determine any fact relating to the occurrence of such event or
contingency, and in this connection may make inquiries of, and consult with, among others, the
City at any time.
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Section Compensation.
The City shall pay to the Escrow Agent fees for performing the services hereunder and
for the expenses incurred or to be incurred by the Escrow Agent in the administration of this
Agreement pursuant to the terms of the Fee Schedule attached hereto as Appendix C. The
Escrow Agent hereby agrees that in no event shall it ever assert any claim or lien against the
Escrow Fund for any fees for its services, whether regular or extraordinary, as Escrow Agent, or
in any other capacity, or for reimbursement for any of its expenses as Escrow Agent or in any
other capacity.
Section Successor Escrow Agents.
Any corporation, association or other entity into which the Escrow Agent may be
converted or merged, or with which it may be consolidated, or to which it may sell or otherwise
transfer all or substantially all of its corporate trust assets and business or any corporation,
association or other entity resulting from any such conversion, sale, merger, consolidation or
other transfer to which it is a party, ipso facto, shall be and become successor escrow agent
hereunder, vested with all other matters as was its predecessor, without the execution or filing
of any instrument or any further act on the part of the parties hereto, notwithstanding anything
herein to the contrary.
If at any time the Escrow Agent or its legal successor or successors should become
unable, through operation or law or otherwise, to act as escrow agent hereunder, or if its
property and affairs shall be taken under the control of any state or federal court or
administrative body because of insolvency or bankruptcy or for any other reason, a vacancy
shall forthwith exist in the office of Escrow Agent hereunder. In such event the City, by
appropriate action, promptly shall appoint an Escrow Agent to fill such vacancy. If no successor
Escrow Agent shall have been appointed by the City within 60 days, a successor may be
appointed by the owners of a majority in principal amount of the Refunded Bonds then
outstanding by an instrument or instruments in writing filed with the City, signed by such
owners or by their duly authorized attorneys-in-fact. If, in a proper case, no appointment of a
successor Escrow Agent shall be made pursuant to the foregoing provisions of this section
within three months after a vacancy shall have occurred, the owner of any Refunded Bond may
apply to any court of competent jurisdiction to appoint a successor Escrow Agent. Such court
may thereupon, after such notice, if any, as it may deem proper, prescribe and appoint a
successor Escrow Agent.
Any successor Escrow Agent shall be a corporation organized and doing business under
the laws of the United States or the State of Washington, authorized under such laws to
exercise corporate trust powers, having its principal office and place of business in the State of
Washington, having a combined capital and surplus of at least $100,000,000 and subject to the
supervision or examination by federal or state authority.
Any successor Escrow Agent shall execute, acknowledge and deliver to the City and the
Escrow Agent an instrument accepting such appointment hereunder, and the Escrow Agent
shall execute and deliver an instrument transferring to such successor Escrow Agent, subject to
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the terms of this Agreement, all the rights, powers and trusts of the Escrow Agent hereunder.
Upon the request of any such successor Escrow Agent, the City shall execute any and all
instruments in writing for more fully and certainly vesting in and confirming to such successor
Escrow Agent all such rights, powers and duties.
The obligations assumed by the Escrow Agent pursuant to this Agreement may be
transferred by the Escrow Agent to a successor Escrow Agent if (a) the requirements of this
Section 8.4 are satisfied; (b) the successor Escrow Agent has assumed all the obligations of the
Escrow Agent under this Agreement; and (c) all of the Escrowed Securities and money held by
the Escrow Agent pursuant to this Agreement have been duly transferred to such successor
Escrow Agent.
Article Miscellaneous
Section Notice.
Any notice, authorization, request, or demand required or permitted to be given
hereunder shall be in writing and shall be deemed to have been duly given when mailed by
registered or certified mail, postage prepaid addressed to the City or the Escrow Agent at the
address shown on Exhibit A attached hereto. The United States Post Office registered or
certified mail receipt showing delivery of the aforesaid shall be conclusive evidence of the date
and fact of delivery. Any party hereto may change the address to which notices are to be
delivered by giving to the other parties not less than ten days prior notice thereof.
Section Termination of Responsibilities.
Upon the taking of all the actions as described herein by the Escrow Agent, the Escrow
Agent shall have no further obligations or responsibilities hereunder to the City, the owners of
the Refunded Bonds or to any other person or persons in connection with this Agreement.
Section Binding Agreement.
This Agreement shall be binding upon the City and the Escrow Agent and their
respective successors and legal representatives, and shall inure solely to the benefit of the
owners of the Refunded Bonds, the City, the Escrow Agent and their respective successors and
legal representatives.
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Section Severability.
In case any one or more of the provisions contained in this Agreement shall for any
reason be held to be invalid, illegal or unenforceable in any respect, such invalidity, illegality or
unenforceability shall not affect any other provisions of this Agreement, but this Agreement
shall be construed as if such invalid or illegal or unenforceable provision had never been
contained herein.
Section Washington Law Governs.
This Agreement shall be governed exclusively by the provisions hereof and by the
applicable laws of the State of Washington.
Section Time of the Essence.
Time shall be of the essence in the performance of obligations from time to time
imposed upon the Escrow Agent by this Agreement.
Section Notice to S&P and Fitch.
In the event that this Agreement or any provision thereof is severed, amended or
revoked, the City shall provide written notice of such severance, amendment or revocation to
Standard & Poor’s Ratings Services, 55 Water Street, New York, New York 10041, Attention:
Refunded Bonds Municipal Bond Department, and to Fitch Ratings, One State Street Plaza,
New York, New York, 10004, Attention: Public Finance Rating Desk/Refunded Bonds.
Section 9.8. Amendments.
This Agreement shall not be amended except to cure any ambiguity or formal defect or
omission in this Agreement. No amendment shall be effective unless the same shall be in
writing and signed by the parties thereto. No such amendment shall adversely affect the rights
of the holders of the Refunded Bonds. No such amendment shall be made without first
receiving written confirmation from the rating agencies (if any) which have rated the Refunded
Bonds that such administrative changes will not result in a withdrawal or reduction of its rating
then assigned to the Refunded Bonds. If this Agreement is amended, prior written notice and
copies of the proposed changes shall be given to the rating agencies which have rated the
Refunded Bonds.
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EXECUTED as of the date first written above.
CITY OF RENTON, WASHINGTON
Designated City Representative
[ESCROW AGENT]
Authorized Signer
Exhibit A —Addresses of the City and the Escrow Agent
Exhibit B —Description of the Refunded Bonds
Exhibit C —Schedule of Debt Service on Refunded Bonds
Exhibit D —Description of Beginning Cash Deposit (if any) and Escrowed Securities
Exhibit E —Escrow Fund Cash Flow
Appendix A —Notice of Redemption for the 2001 Bonds
Appendix B —Notice of Defeasance for the 2001 Bonds
Appendix C —Fee Schedule
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EXHIBIT A
Addresses of the City and Escrow Agent
City:City of Renton
1055 S. Grady Way
Renton, Washington 98057
Attention: Finance and Information Services Administrator
Escrow Agent:[to come]
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EXHIBIT B
Description of the Refunded Bonds
City of Renton, Washington
Limited Tax General Obligation and Refunding Bonds, 2001
Maturity Years
(December 1)
Principal Amounts
Interest Rates
$%
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EXHIBIT C
Schedule of Debt Service on the Refunded Bonds
Date
Interest
Principal/
Redemption Price
Total
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EXHIBIT D
Escrow Deposit
I.Cash:$_________
II.Other Obligations:
Description
Maturity Date
Principal Amount
Interest Rate
Total Cost
$%$
III.Costs of Issuance:
Escrow Agent Fee (_______)$
Bond Counsel Fee (K&L Gates)
Escrow Verification Fee (_________)
Preliminary Official Statement Posting
Official Statement Printing/Mailing
Rating Agencies (S&P/Fitch)
Contingency proceeds ______
TOTAL:$
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EXHIBIT E
Escrow Fund Cash Flow
Date
Escrow Requirement
Net Escrow Receipts
Excess
Receipts
Cash
Balance
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APPENDIX A
NOTICE OF REDEMPTION*
City of Renton, Washington
Limited Tax General Obligation and Refunding Bonds, 2001
NOTICE IS HEREBY GIVEN that the City of Renton, Washington has called for redemption
on December 1, 2011 a portion of its outstanding Limited Tax General Obligation and Refunding
Bonds, 2001 (the “Bonds”).
The Bonds will be redeemed at a price of one hundred percent (100%) of their principal
amount, plus interest accrued to December 1, 2011. The redemption price of the Bonds is
payable on presentation and surrender of the Bonds at the office of:
The Bank of New York Mellon
Worldwide Series Processing
2001 Bryan Street, 9th Floor
Dallas, Texas 75021
-or-
Wells Fargo Bank National
Association
Corporate Trust Department
14th Floor - M/S 257
999 Third Avenue
Seattle, Washington 98104
Interest on all Bonds or portions thereof which are redeemed shall cease to accrue on
December 1, 2011.
The following Bonds are being redeemed:
Maturity Years
(December 1)
Principal Amounts
Interest Rates
CUSIP Nos.
$%
By Order of the City of Renton, Washington
The Bank of New York Mellon, as Paying Agent
Dated: .
Withholding of 28% of gross redemption proceeds of any payment made within the
United States may be required by the Jobs and Growth Tax Relief Reconciliation Act of 2003
(the “Act”) unless the Paying Agent has the correct taxpayer identification number (social
security or employer identification number) or exemption certificate of the payee. Please
furnish a properly completed Form W-9 or exemption certificate or equivalent when presenting
your Bonds.
6f. ‐ Finance and Information Services Department requests approval of
an ordinance authorizing the issuance of bonds in the amount of Page 111 of 138
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03/08/10
APPENDIX B
Notice of Defeasance*
City of Renton, Washington
Limited Tax General Obligation and Refunding Bonds, 2001
NOTICE IS HEREBY GIVEN to the owners of that portion of the above-captioned bonds
with respect to which, pursuant to an Escrow Deposit Agreement dated _________, 2010, by
and between City of Renton, Washington (the “City”) and ____________, _______________
(the “Escrow Agent”), the City has deposited into an escrow account, held by the Escrow Agent,
cash and non-callable direct obligations of the United States of America, the principal of and
interest on which, when due, will provide money sufficient to pay each year, to and including
the respective maturity or redemption dates of such bonds so provided for, the principal
thereof and interest thereon (the “Defeased Bonds”). The Defeased Bonds will be called on
December 1, 2011 at a price of 100% plus accrued interest. Such Defeased Bonds are therefore
deemed to be no longer outstanding pursuant to the provisions of Ordinance No. 4922 of the
City, authorizing the issuance of the Defeased Bonds, but will be paid by application of the
assets of such escrow account.
The Defeased Bonds are described as follows:
Limited Tax General Obligation and Refunding Bonds, 2001 (Dated November 1, 2001)
Maturity Years
(December 1)
Principal Amounts
Interest Rates
CUSIP Nos.
Call Date
(at 100%)
$% 12/1/2011
12/1/2011
12/1/2011
12/1/2011
Information for Individual Registered Owner
The addressee of this notice is the registered owner of Bond Certificate No. _____ of the
Defeased Bonds described above, which certificate is in the principal amount of $_________.
All of which has been defeased as described above.
6f. ‐ Finance and Information Services Department requests approval of
an ordinance authorizing the issuance of bonds in the amount of Page 112 of 138
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APPENDIX C
Fee Schedule
6f. ‐ Finance and Information Services Department requests approval of
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CERTIFICATION
I, the undersigned, City Clerk of the City of Renton, Washington (the “City”), hereby
certify as follows:
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 April 5, 2010, as that ordinance appears on the
minute book of the City; and the Ordinance will be in full force and effect after publication in
the City’s official newspaper as provided by law; and
2.A quorum of the members of the City Council was present throughout the
meeting and a majority of those members present voted in the proper manner for the passage
of the Ordinance.
IN WITNESS WHEREOF, I have hereunto set my hand this ___ day of April, 2010.
CITY OF RENTON, WASHINGTON
Bonnie Walton, City Clerk
6f. ‐ Finance and Information Services Department requests approval of
an ordinance authorizing the issuance of bonds in the amount of Page 114 of 138
CITY OF RENTON COUNCIL AGENDA BILL
Subject/Title:
Incentive Package for Fiber Network
Meeting:
Regular Council - 15 Mar 2010
Exhibits:
Issue Paper
Draft Resolution
Submitting Data: Dept/Div/Board:
Finance & Information Technology
Staff Contact:
Iwen Wang, F&IT Administrator
Recommended Action:
Refer to Finance Committee.
Fiscal Impact:
Expenditure Required: $ N/A Transfer Amendment: $N/A
Amount Budgeted: $ N/A Revenue Generated: $
Total Project Budget: $ N/A City Share Total Project: $ N/A
SUMMARY OF ACTION:
Should the City pursue a partnership for the construction of an ultra high speed fiber network?
Most communications services provides in the U.S. provides their services with a fiber backbone to a
neighborhood and then switch to cooper in the final connection to the home or business. An estimate
done in 2007 suggests the cost is between $800 to $1400 per home which translates to $25 to $40
million in total cost to deploy such a system in Renton.
Staff is recommending an "incentive" package that is available to the first private enterprise that would
build the network in Renton and offer services to our residents and businesses at competitive rates.
This proposed "incentive" package is open to any company to be the first in deploying the network in
Renton. It is a limited time offer, set to expire two years after the effective date.
STAFF RECOMMENDATION:
Approve a Resolution granting certain privileges to the first telecom company to build a fiber to the
home/premises network in Renton.
6g. ‐ Finance and Information Services Department recommends
approval of resolution offering an incentive to the first telecom company Page 115 of 138
FINANCE AND
INFORMATION TECHNOLOGY
M E M O R A N D U M
DATE:March 8, 2010
TO:Don Persson, Council President
Members of the Renton City Council
VIA:Denis Law, Mayor
FROM:Iwen Wang, F&IT Administrator
SUBJECT:Incentive Package for Fiber to the Premises Network
ISSUE
Should the City pursue partnership for the construction of an ultra high speed fiber network?
RECOMMENDATION
Staff recommends the Council’s approval of offering an incentive package to telecom
companies and other private enterprises, including Google, to construct a Fiber to the
Premises (FTTP) network and provide services at competitive prices.
BACKGROUND SUMMARY
Most communications services providers in the U.S. provides their services with a fiber
backbone to a neighborhood and then switch to copper in the final connection to the home or
most businesses. This is because the cost of building the “last mile” of fiber, and the
equipment required to convert the signal is very high. An estimate done in 2007 suggests the
cost is between $800 to $1400 per home which translates to $25 to $40 million in total cost to
deploy such a system in Renton.
Google released its Fiber Community request for information on February 10, seeking
communities to build and test a FTTP system. According to their announcement, they want to
build networks in multiple communities for population from 50,000 to 500,000. A staff team is
working on the response. Given the importance and potential impact on the community, staff
is recommending the City offer an “incentive” package that is available to the first private
enterprise that would build the network in Renton and offer services to our residents and
businesses at competitive rates.
The incentive package will include and may not be limited to:
1.Use of City owned poles, conduits as capacity permits;
2.No permit fee and expedited permit review and inspection;
3.A utility tax holiday for 24 months for new revenues generated through the fiber connections.
6g. ‐ Finance and Information Services Department recommends
approval of resolution offering an incentive to the first telecom company Page 116 of 138
CONCLUSION
FTTP would provide ultra high speed communication services and is important to
ourcompetitiveness and quality of life in the 21st century. The cost of building the system is
highand only a few small scale experiments at this time (Verizon has FiOS in limited areas
thatwould deliver the same speed). This proposed incentive package is open to any company,
notjust Google, to be the first in deploying the network in Renton. It is a limited time offer,
set toexpire two-years after the effective date.
Attachment: Draft Resolution
6g. ‐ Finance and Information Services Department recommends
approval of resolution offering an incentive to the first telecom company Page 117 of 138
1
CITY OF RENTON, WASHINGTON
RESOLUTION NO. _______
A RESOLUTION OF THE CITY OF RENTON, WASHINGTON
GRANTING CERTAIN PRIVILEGES TO THE FIRST TELECOM
COMPANY TO BUILD A FIBER TO THE HOME/PREMISES NETWORK
IN RENTON
WHEREAS, the information superhighway is connected through high-speed internet
networks that will allow Renton children, families, and businesses to expand their knowledge,
opportunities, and productivities, and is an essential feature of quality of life in the 21st century;
and
WHEREAS, such systems are already present in many parts of the world and are known
as the Fiber to the Home/Premises (FTTH/FTTP) network; and
WHEREAS, the cost of deploying such a network in Renton is estimated to be between
$25 to $40 million; and
WHEREAS, Google Inc. has issued a Request for Information seeking communities to
partner to build and test an ultra-high-speed network; and
WHEREAS, Renton wishes to pursuit partnership with Google and any Telecom
company who would build such a system in Renton and offer connection service at a competitive
price.
NOW, THEREFORE, THE CITY COUNCIL OF THE CITY OF RENTON,
WASHINGTON, DOES RESOLVE AS FOLLOWS:
SECTION I.The City shall aggressively pursue partnership opportunities to
allow private companies to build ultra-high-speed internet infrastructure and offer competitively
priced services in Renton. To do so, for a limited time, the City will offer any telecom company
6g. ‐ Finance and Information Services Department recommends
approval of resolution offering an incentive to the first telecom company Page 118 of 138
RESOLUTION NO. _______
2
H:\Finance\Council\2010\Google FTTH resolution- 3-8-2010 (2).doc
that would build the first Fiber to the Premises (FTTP) infrastructure in Renton an incentive
package that will include:
1.Use of city owned poles, conduits as capacity permits;
2.No permit fee and expedited permit review and inspection; and
3.A utility tax holiday for connection. Twenty-four (24) months for any new revenues
generated through the fiber network system.
SECTION II. The City is pursuing the Google Fiber Community Request for
Information and will offer the same package to Google for consideration.
SECTION III. This Resolution shall be effective upon its passage, approval, and five
days after publication and shall expire two years after it is effective.
PASSED BY THE CITY COUNCIL this _______ day of ___________________, 2010
Bonnie I. Walton, City Clerk
APPROVED BY THE MAYOR this _______ day of _______________________, 2010
Denis Law, Mayor
Approved as to form:
Lawrence J. Warren, City Attorney
6g. ‐ Finance and Information Services Department recommends
approval of resolution offering an incentive to the first telecom company Page 119 of 138
CITY OF RENTON COUNCIL AGENDA BILL
Subject/Title:
Start Lateral Police Officer at "D" Step Police
Officer Wage
Meeting:
Regular Council - 15 Mar 2010
Exhibits:
Issue Paper
Submitting Data: Dept/Div/Board:
Police
Staff Contact:
Katie McClincy, Commander
Recommended Action:
Council concur
Fiscal Impact:
Expenditure Required: $ 3,402 Transfer Amendment: $
Amount Budgeted: $ 3,402 Revenue Generated: $
Total Project Budget: $ 3,402 City Share Total Project: $
SUMMARY OF ACTION:
Officer Robert Bagsby has completed all phases of testing and has been offered employment with the
Renton Police Department. He is a three year veteran of the Des Moines Police Department where he
has achieved "Master Police Officer" certification. Prior to working for the Des Moines Police
Department, Officer Bagsby worked nine years for the University of Washington Police Department,
were he was a Field Training Officer, a Detective, and Officer-in-charge in the absence of a sergeant.
Officer Bagsby has a Bachelor of Arts Degree in Sociology from the University of Washington. Officer
Bagsby's prior law enforcement experience merits a higher beginning salary than "C" step. His
compensation at "D" step will be $5,664. With a difference of $378 per month, beginning April 1, the
additional cost to the city will be $3,402, which will not require additional funding.
STAFF RECOMMENDATION:
Approve and authorize wages at City of Renton salary range pc60 “D” step for Robert Bagsby.
6h. ‐ Police Department requests authorization to hire a lateral police
officer at Step D of the salary range, effective 4/1/2010. Council concur.Page 120 of 138
POLICE DEPARTMENT
M E M O R A N D U M
DATE:March 8, 2010
TO:
VIA:
Don Persson, Council President
Members of the Renton City Council
Denis Law, Mayor
FROM:
STAFF CONTACT:
Chief Kevin Milosevich
Commander Katie McClincy
SUBJECT:Request to Start Lateral Police Officer Robert Bagsby at “D” –
Step Police Officer Wage
ISSUE:
Should the City Council authorize the starting compensation for Lateral Police Officer
Candidate Robert Bagsby at Step “D” of the Police Officer salary range?
RECOMMENDATION:
Approve and authorize “D” Step Police Officer wage for Lateral Police Officer Candidate
Robert Bagsby (effective April 1, 2010).
BACKGROUND:
The Police Department has attracted many well qualified and experienced officers from
outside agencies. On occasion, lateral officer candidates possess tenure and experience
which shorten the amount of time needed to train and acclimate them to the “Renton
Way” of doing business. The Chief of Police is authorized to offer new employees a
salary of up to “C” step without Council approval. Entry-level officers with the Renton
Police Department reach “D” step with three years of service.
Des Moines, WA, Police Officer Robert Bagsby has completed all phases of testing and
has been offered employment with the Renton Police Department. Officer Bagsby is a
three year veteran of the Des Moines Police Department, where he has achieved
“Master Police Officer” certification. Prior to working for the Des Moines Police
Department, Officer Bagsby worked nine years for the University of Washington Police
Department, where he was a Field Training Officer, a Detective, and Officer-in-Charge in
the absence of a sergeant. Officer Bagsby has a Bachelor of Arts Degree in Sociology
from the University of Washington.
6h. ‐ Police Department requests authorization to hire a lateral police
officer at Step D of the salary range, effective 4/1/2010. Council concur.Page 121 of 138
Page 2 of 2
March 4, 2010
Officer Bagsby’s prior law enforcement experience merits a higher beginning salary than
“C” step. Officer Bagsby’s compensation at “D” step will be $5,664. With a difference of
$378 per month, beginning April 1st, the additional cost to the city will be $3,402, which
will not require additional funding.
6h. ‐ Police Department requests authorization to hire a lateral police
officer at Step D of the salary range, effective 4/1/2010. Council concur.Page 122 of 138
CITY OF RENTON COUNCIL AGENDA BILL
Subject/Title:
Amendment to CAG-08-149, Agreement with
Washington State Department of Transportation
for City Project Coordinator for the I-405/I-5 to SR
169 Stage 2 Widening Project
Meeting:
Regular Council - 15 Mar 2010
Exhibits:
Amendment #1 to GCA-5828 Cooperative
Agreement
Submitting Data: Dept/Div/Board:
Public Works
Staff Contact:
Keith Woolley, Civil Engineer, x7318
Recommended Action:
Council Concur
Fiscal Impact:
Expenditure Required: $ N/A Transfer Amendment: $
Amount Budgeted: $ Revenue Generated: $$50,050
Total Project Budget: $ City Share Total Project: $
SUMMARY OF ACTION:
The Washington State Department of Transportation (WSDOT) I-405/I-5 to SR 169
Stage 2 – Widening Project is currently under construction. The project is building an additional lane on I-
405 in each direction between SR 167 and SR 169, reconstructing Benson Road South from City Hall south
over I-405, widening Talbot Road South between South Renton Village Place and South Puget Drive, and
constructing a half-interchange at Talbot Road South.
The position of City Project Coordinator has been a mutual benefit to both the City and WSDOT. WSDOT
desires to amend this agreement from $52,000 to $102,050 in order to fund the City Project Coordinator
position through the duration of the project. The project is anticipated to be substantially completed in early
2011.
STAFF RECOMMENDATION:
Approve an amendment to GCA-5828 Cooperative Agreement with the Washington State Department of
Transportation (WSDOT) for extending a City Project Coordinator for the I-405/I-5 to SR 169 Stage 2 Widening
Project.
6i. ‐ Transportation Systems Division recommends approval of an
amendment to CAG‐08‐149, with the Washington State Department of Page 123 of 138
6i. ‐ Transportation Systems Division recommends approval of an
amendment to CAG‐08‐149, with the Washington State Department of Page 124 of 138
CITY OF RENTON COUNCIL AGENDA BILL
Subject/Title:
Addendum to AirO, Inc. Lease LAG 03-002
Meeting:
Regular Council - 15 Mar 2010
Exhibits:
Addendum to Lease Agreement, LAG 03-002
Submitting Data: Dept/Div/Board:
Public Works
Staff Contact:
Ryan Zulauf, Airport Manager, x7471
Recommended Action:
Council Concur
Fiscal Impact:
Expenditure Required: $ N/A Transfer Amendment: $
Amount Budgeted: $ Revenue Generated: $$6,886
Total Project Budget: $ City Share Total Project: $
SUMMARY OF ACTION:
AirO, Inc. has had a month-to-month building and ground lease with the City since November 2003.
AirO, Inc.’s ground lease area was reduced by 4,400 square feet in June 2008, in order to relocate a
vehicle drive lane. Its lease allows for a periodic lease rate adjustment, using the Consumer Price
Index-Urban. Effective November 1, 2009, using the Consumer Price Index-Urban, the annual building
lease amount was increased from $28,114 to $30,570 and the annual ground lease amount was
increased from $50,502 to $54,932 for the ensuing three-year period ending October 31, 2012. This
results in a total annual revenue increase of $6,886, or a total annual revenue of $85,502.
STAFF RECOMMENDATION:
Authorize the Mayor and City Clerk to sign the addendum to Lease LAG-03-002, with AirO, Inc.
6j. ‐ Transportation Systems Division recommends approval of an
addendum to airport lease LAG‐03‐002, with AirO, Inc., to increase the Page 125 of 138
6j. ‐ Transportation Systems Division recommends approval of an
addendum to airport lease LAG‐03‐002, with AirO, Inc., to increase the Page 126 of 138
6j. ‐ Transportation Systems Division recommends approval of an
addendum to airport lease LAG‐03‐002, with AirO, Inc., to increase the Page 127 of 138
6j. ‐ Transportation Systems Division recommends approval of an
addendum to airport lease LAG‐03‐002, with AirO, Inc., to increase the Page 128 of 138
6j. ‐ Transportation Systems Division recommends approval of an
addendum to airport lease LAG‐03‐002, with AirO, Inc., to increase the Page 129 of 138
3 /r/'a*'*?
CITY OF RENTON, WASHINGTON
ORDINANCE NO.
AN ORDINANCE OF THE CITY OF RENTON, WASHINGTON, AMENDING TITLE VI
(POLICE REGULATIONS) OF ORDINANCE NO. 4260 ENTITLED "CODE OF
GENERAL ORDINANCES OF THE CITY OF RENTON, WASHINGTON", BY ADDING A
NEW CHAPTER 30, ENTITLED "EXPULSION FROM CITY PARKS", TO AUTHORIZE
ADMINISTRATIVE SUSPENSION OF PARK USE BY INDIVIDUALS WHO VIOLATE
LAWS AND PARK RULES AND REGULATIONS IN THE PARKS; AUTHORIZE
HEARINGS ON THOSE SUSPENSIONS; DEFINE THE CRIME OF TRESPASS IN
PARKS; AND ESTABLISH THE PENALTY THEREFOR.
WHEREAS, the City of Renton currently operates and maintains thirty-one (31) parks,
nine (9) trails, eleven (11) open space areas, one (1) golf course, one (1) aquatic center, and
sixteen (16) recreation buildings (hereinafter, collectively, "Parks"); and
WHEREAS, the City of Renton Community Services is a nationally accredited agency; and
WHEREAS, the City's Parks, represent 80% of its public lands; and
WHEREAS, unlawful and inappropriate behavior in the City's Parks diminishes these
precious assets and deprives citizens of the full use and enjoyment of the natural beauty,
recreational opportunities and peaceful repose that parks are intended to preserve in an urban
setting; and
WHEREAS, in addition to more serious criminal acts that threaten personal injury and
property damage, a wide range of prohibited or disorderly behavior can transform a Park into
an unwelcoming, unattractive and ultimately unsafe public space requiring increased
expenditures for public safety and maintenance; and
WHEREAS, the City of Renton has had to increase law enforcement activity in its Parks
to combat violence, drug dealing, and sexual activity; and
8a. ‐ Add new chapter to Title VI (Police Regulations), Chapter 6‐30,
entitled "Expulsion from City Parks" (1st reading 3/1/2010)Page 130 of 138
ORDINANCE NO.
WHEREAS, the laws and Park Rules and Regulations (hereinafter "Park Rules") that are
intended to preserve and protect the Parks forthe benefit of all are effective only if those who
use the Parks obey them. The current criminal and civil penalties for violating the law are
frequently inadequate alone to deter illegal behavior, prevent its recurrence or provide for the
removal of the offender from the Park; and
WHEREAS, compliance with the law and Park Rules, will be enhanced by the immediate
administrative sanction of expelling from the City's Parks those who violate the law or Park
Rules, and for repeat offenders and for more serious offenses, expulsion for an extended period
of time will provide a necessary additional remedy to protect the Parks; and
WHEREAS, due to the geographic proximity of Parks, the similarity of some Park
functions and the potential displacement of illegal behavior from one Park to another, it is
necessary to provide for expulsion from all Parks when expulsion from one Park is warranted;
NOW, THEREFORE, THE CITY COUNCIL OF THE CITY OF RENTON, WASHINGTON, DOES
ORDAIN AS FOLLOWS:
SECTION I. Title VI, Police Regulations, of Ordinance No. 4260 entitled "Code of
General Ordinances of the City of Renton, Washington", is hereby amended to add a new
chapter, 30, entitled "Expulsion From City Parks", to read as follows:
CHAPTER 30
EXPULSION FROM CITY PARKS
SECTION:
6-30-1
6-30-2
6-30-3
6-30-4
Definitions
Expulsion Notices
Administrative Appeal
Administrative Hearing
6-30-5 Trespass in Parks - Definition - Punishment
8a. ‐ Add new chapter to Title VI (Police Regulations), Chapter 6‐30,
entitled "Expulsion from City Parks" (1st reading 3/1/2010)Page 131 of 138
ORDINANCE NO.
6-30-1 DEFINITIONS:
Unless the context clearly requires otherwise, the definitions in this Section
shall apply throughout this Chapter:
A. Good Cause to Believe means: facts and circumstances within the issuer's
knowledge that would cause a reasonable person to believe that the person to
be expelled has violated a park rule or regulation, or has violated a city or state
law.
B. Park shall include: The parks, trails, open space areas, golf course, and
recreation buildings owned, operated, and/or maintained by the City of Renton.
C. Director shall include: The Facilities Director, Parks and Golf Course
Director, Parks Planning and Natural Resources Director, and Recreation
Director.
D. Sexual Act is: Any act of Indecent Exposure as that term is defined in
RCW 9A.88.010, as now or hereafter amended; any Lewd Act as that term is
defined in RMC 6-18-18 as now or hereafter amended, OR any Sexual Conduct as
that term is defined in RCW 16.52.205(8)(b), as now or hereafter amended.
E. Open Space is: A non-developed physical area, including but not limited
to natural areas and wetlands, that provides visual relief from the built
environment for environmental, scenic, or recreational purposes.
6-30-2 EXPULSION NOTICES:
A. The Director or his or her designee (hereinafter "Park Official") or police
officer may order the expulsion of any person from all Parks for a period up to
8a. ‐ Add new chapter to Title VI (Police Regulations), Chapter 6‐30,
entitled "Expulsion from City Parks" (1st reading 3/1/2010)Page 132 of 138
ORDINANCE NO.
one (1) year if the Park Official or police officer has good cause to believe such
person, while in any Park:
1. Has been expelled from a Park two (2) or more times in any 30-day
period;
2. Has been expelled from a Park three (3) or more times in any 90-day
period;
3. Committed an assault upon another person;
4. Sold or used alcohol;
5. Sold, possessed or used illegal drugs;
6. Brandished or used any weapon;
7. Committed a sexual act, as that term is defined herein;
8. Committed a theft that may be punished as a Class A felony as
defined in RCW 9A.56.030 or a Class B felony as defined in RCW 9A.56.040; or
9. Caused damage, including graffiti, to any park property.
B. The Park Official or any police officer may order the expulsion of any
person from all Parks for a period up to seven (7) days when he or she has good
cause to believe that said person has violated any Park Rule or Regulation or any
city or state law, other than the violations identified in RMC 6-30-2A, above.
C. The expulsion notice shall:
1. Be in writing and signed by the individual issuing it;
2. Contain the date of issuance, the violation that the person is alleged
to have committed, and a citation to the code, statute, or park rule violated;
8a. ‐ Add new chapter to Title VI (Police Regulations), Chapter 6‐30,
entitled "Expulsion from City Parks" (1st reading 3/1/2010)Page 133 of 138
ORDINANCE NO.
3. Specify the length and places of expulsion;
4. Set out the method for appealing the notice; and
5. Prominently display a warning of the consequences for failure to
comply with the notice.
E. The person being expelled need not be charged, tried, or convicted of any
crime or be issued an infraction or have an infraction found committed in order
for an expulsion notice to be issued or effective.
6-30-3 ADMINISTRATIVE APPEAL:
A. A person receiving an expulsion notice for an expulsion of seven (7) days,
or longer, may file an appeal to have the expulsion notice rescinded or the
duration of the expulsion shortened.
B. The appeal must be in writing, provide the appellant's current address,
and shall be accompanied by a copy of the expulsion notice that is being
appealed.
C. The written notice of appeal must be sent to the Community Services
Administrator, postmarked no later than seven (7) calendar days after the
issuance of the expulsion notice.
D. The expulsion shall remain in effect during the pendency of any
administrative or judicial proceeding.
E. This chapter shall be enforced so as to emphasize voluntary compliance
with laws and Park Rules, and so that inadvertent minor violations of Park Rules
and Regulations can be corrected without resort to an expulsion notice.
8a. ‐ Add new chapter to Title VI (Police Regulations), Chapter 6‐30,
entitled "Expulsion from City Parks" (1st reading 3/1/2010)Page 134 of 138
ORDINANCE NO.
6-30-4 ADMINISTRATIVE HEARING:
A. The Community Services Administrator or his or her designee
(hereinafter "Hearing Official") shall:
1. Notify the appellant of the hearing date, time, and location;
2. Conduct a hearing within ten (10) business days of receipt of the
notice of appeal; and
3. Issue a ruling upholding, rescinding, or shortening the duration of the
expulsion no later than five (5) business days after the hearing.
B. The Hearing Official shall consider a sworn report or a declaration under
penalty of perjury as authorized by RCW 9A.72.085, written by the individual
who issued the expulsion notice, without further evidentiary foundation. This
evidence creates a rebuttable presumption that the violation occurred and the
burden thereafter rests with the appellant to overcome the presumption.
C. The Hearing Official shall consider the expulsion notice and may consider
any written or oral sworn testimony of the appellant or witnesses, as well as
pictorial or demonstrative evidence offered by the appellant that the Hearing
Official considers relevant and trustworthy. The Hearing Official may consider
information that would not be admissible under the evidence rules in a court of
law.
D. The Hearing Official may issue subpoenas for the attendance of witnesses
and the production of documents, and shall administer individual oaths to
witnesses. The Hearing Official shall not issue a subpoena for the attendance of a
8a. ‐ Add new chapter to Title VI (Police Regulations), Chapter 6‐30,
entitled "Expulsion from City Parks" (1st reading 3/1/2010)Page 135 of 138
ORDINANCE NO.
witness at the request of the appellant unless the request is accompanied by the
fee required by RCW 5.56.010 for a witness in district court. The appellant shall
be responsible for serving any subpoena issued at the appellant's request.
E. If, after the hearing, the Hearing Official is persuaded on a "more
probable than not" basis that the violation did occur, the expulsion notice shall
be upheld. Upon a satisfactory showing by appellant that he or she understands
his or her violation and will not repeat the violation, the Hearing Official may
shorten the duration of the expulsion. If, however, the violation is not proved on
a "more probable than not" basis, then the Hearing Official shall rescind the
expulsion. If the Hearing Official rescinds an expulsion, the expulsion shall not be
considered a prior expulsion for purposes of RMC 6-30-2A, above.
F. The decision of the Hearing Official is final.
G. No determination of facts made by the Hearing Official under this
section shall have any collateral estoppel effect on a subsequent criminal
prosecution or civil proceeding and shall not preclude litigation of those same
facts in a subsequent criminal prosecution or civil proceeding.
H. In no event will the Hearing Official be a person who is subordinate to the person
who issued the expulsion notice.
6-30-5 TRESPASS IN PARKS - DEFINITION - PENALTIES:
A. It is unlawful for any person to:
1. Enter or remain in any Park during the period covered by an expulsion
notice pursuant to RMC 6-30-2, above; or
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ORDINANCE NO.
2. Enter, remain in, or be present within the premises of a Park during
hours that the Park is not open to the public.
B. It is not a defense to the crime of trespass in parks:
1. That the underlying expulsion issued pursuant to this chapter is on
appeal when the expelled person was apprehended, charged, or tried under this
section; nor
2. That the expelled person entered or remained in the Park pursuant to
a permit that was issued either before or after the date of the expulsion notice.
C. Any person who violates the provisions of this chapter shall be guilty of a
misdemeanor and may be punished by a fine in any sum not to exceed one
thousand dollars ($1,000) or by imprisonment for a term not to exceed ninety
(90) days, or by both such fine and imprisonment.
SECTION II. Should any section, paragraph, sentence, clause or phrase of this
ordinance, or its application to any person or circumstance, be declared unconstitutional or
otherwise invalid for any reason, or should any portion of this Ordinance be preempted by state
or federal law or regulation, such decision or preemption shall not affect the validity of the
remaining portions of this ordinance or its application to other persons or circumstances.
SECTION III. This ordinance is effective upon its passage, approval and thirty (30) days
after publication.
PASSED BY THE CITY COUNCIL this day of , 2010.
Bonnie I. Walton, City Clerk
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ORDINANCE NO.
APPROVED BY THE MAYOR this day of , 2010.
Approved as to form:
Lawrence J. Warren, City Attorney
Date of Publication:
ORD:1584:3/2/10:scr
Denis Law, Mayor
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