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Home My WebLink About02-16-2016 CITY COUNCIL AGENDACity Council Meeting February 16, 2016 - 7:00 PM Auburn City Hall AGENDA Watch the meeting LIVE! Watch the meeting video Meeting videos are not available until 72 hours after the meeting has concluded. I. CALL TO ORDER A. Pledge of Allegiance B. Roll Call II. ANNOUNCEMENTS, PROCLAMATIONS, AND PRESENTATIONS III. APPOINTMENTS IV. AGENDA MODIFICATIONS V. CITIZEN INPUT, PUBLIC HEARINGS & CORRESPONDENCE A. Public Hearings 1. Moratorium on Marijuana/Cannabis Related Businesses and Uses* (Heid) City Council to conduct a public hearing to receive public comments and suggestions with regard to the moratorium on the allowance, acceptance or processing of applications for business licenses and other licenses, permits and approvals for marijuana/cannabis related business and uses (RECOMMENDED ACTION: City Council conduct the public hearing.) B. Audience Participation This is the place on the agenda where the public is invited to speak to the City Council on any issue. Those wishing to speak are reminded to sign in on the form provided. C. Correspondence There is no correspondence for Council review. VI. COUNCIL AD HOC COMMITTEE REPORTS Council Ad Hoc Committee Chairs may report on the status of their ad hoc Council Committees' progress on assigned tasks and may give their recommendation to the City Council, if any. VII. CONSENT AGENDA Page 1 of 109 All matters listed on the Consent Agenda are considered by the City Council to be routine and will be enacted by one motion in the form listed. A. Minutes of the February 1, 2016 Meeting* B. Minutes of the January 25, 2016 Special Meeting* C. Minutes of the October 29-30, 2015 Special City Council Meeting* D. Claims Vouchers (Coleman) Claims voucher numbers 437349 through 437533 in the amount of $2,588,573.43 and five wire transfers in the amount of $537,699.18 and dated February 16, 2016. E. Payroll Vouchers (Coleman) Payroll check numbers 536226 through 536260 in the amount of $566,172.02 and electronic deposit transmissions in the amount of $1,408,021.39 for a grand total of $1,974,193.41 for the period covering January 28, 2016 to February 10, 2016. F. Public Works Project No. CP1414* (Snyder) City Council approve Final Pay Estimate No. 7 to Contract No. 15-10 in the amount of $21,232.18 and accept construction of Project No. CP1414, 2015 Local Street Reconstruction Project. (RECOMMENDED ACTION: City Council approve the Consent Agenda.) VIII. UNFINISHED BUSINESS IX. NEW BUSINESS X. ORDINANCES A. Ordinance No. 6587, Second Reading* (Coleman) An Ordinance of the City Council of the City of Auburn, Washington, authorizing the issuance of a Limited Tax General Obligation Refunding Bond of the City in the principal amount of not to exceed $4,000,000 for the purpose of refunding certain outstanding Limited Tax General Obligation Bonds of the City; providing the form of the bond; and authorizing the sale of the bond (RECOMMENDED ACTION: City Council adopt Ordinance No. 6587.) B. Ordinance No. 6588, Second Reading* (Coleman) An Ordinance of the City Council of the City of Auburn, Washington, establishing the Local Sales and Use Tax rate for Local Revitalization Financing for 2016 (RECOMMENDED ACTION: City Council adopt Ordinance No. 6588.) XI. RESOLUTIONS A. Resolution No. 5198* (Snyder) A Resolution of the City Council of the City of Auburn, Washington, setting a public hearing to consider the renewal of Franchise Agreement No. 10-23 and Page 2 of 109 amendment of Ordinance No. 6344 with New Cingular Wireless PCS, LLC (RECOMMENDED ACTION: City Council adopt Resolution No. 5198.) B. Resolution No. 5201* (Haugan) A Resolution of the City Council of the City of Auburn, Washington, authorizing the Mayor to execute an Interlocal Agreement between the City of Auburn and Valley Regional Fire Authority for GIS services (RECOMMENDED ACTION: City Council adopt Resolution No. 5201.) C. Resolution No. 5209* (Snyder) A Resolution of the City Council of the City of Auburn, Washington, authorizing the Mayor to execute a third amendment to the Transit Service Direct Financial Partnership Agreement between the City of Auburn, King County and Pierce County Public Transit Benefit Authority (Pierce Transit) (RECOMMENDED ACTION: City Council adopt Resolution No. 5209.) XII. MAYOR AND COUNCILMEMBER REPORTS At this time the Mayor and City Council may report on their significant City-related activities since the last regular Council meeting. A. From the Council B. From the Mayor XIII. ADJOURNMENT Agendas and minutes are available to the public at the City Clerk's Office, on the City website (http://www.auburnwa.gov), and via e-mail. Complete agenda packets are available for review at the City Clerk's Office. *Denotes attachments included in the agenda packet. Page 3 of 109 AGENDA BILL APPROVAL FORM Agenda Subject: Moratorium on Marijuana/Cannabis Related Businesses and Uses Date: February 10, 2016 Department: City Attorney Attachments: Resolution No. 5194 Budget Impact: $0 Administrative Recommendation: City Council to conduct the required public hearing. Background Summary: On January 4, 2016, the City Council passed Resolution No. 5194, establishing a moratorium on marijuana related businesses and uses. The moratorium resolution provided, pursuant to statute, a public hearing, which public hearing was scheduled for February 16, 2016. This resolution included a work plan which, pursuant to the authority of the state statute, was set for a term of one year, it could be amended, extended or terminated by the City Council. The reason for the moratorium was because the City Council needs that time to look at the factors involved in more marijuana related business because of (in light of) certain changes implemented by the Washington State Liquor and Cannabis Board stemming from recent enactments of the Washington State Legislature. Initially, following voter approval of Initiative Number 502 (I-502), the limitation on the number of marijuana retail businesses was established for jurisdictions across the state, which included a maximum of two retail marijuana establishments for the city of Auburn. Pursuant to the expanded authority of recent legislative action, the Liquor and Cannabis Board advised the city it would be increasing that number for the City of Auburn (as it was also doing for other cities across the state). Curiously, the letter advising cities of this change notified cities that they may need to impose moratoria if they wish to take steps to control the number of retail marijuana establishments. However, the city has been advised by the Liquor and Cannabis Board that it will not recognize moratoria. It is unknown whether this was directed specifically at the City of Auburn or more generally to other cities in this state. AUBURN * MORE THAN YOU IMAGINEDPH.1 Page 4 of 109 Not only in light of the expanded authority of the Liquor and Cannabis Board but also in light of the potential increase in the number of retail marijuana establishments, staff felt it was appropriate that the City Council implement a moratorium until the City could determine how it should approach marijuana business issues in light of the changing landscape. The public hearing scheduled for February 16, 2016, is to receive comments from the public regarding the moratorium and to get the City Council a sense of where the community may be with respect to the issues involved. Reviewed by Council Committees: Councilmember:Staff:Heid Meeting Date:February 16, 2016 Item Number:PH.1 AUBURN * MORE THAN YOU IMAGINEDPH.1 Page 5 of 109 RESOLUTION NO. 5 1 9 4 A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF AUBURN, WASHINGTON, ESTABLISHING A MORATORIUM ON THE ALLOWANCE, ACCEPTANCE OR PROCESSING OF APPLICATIONS FOR BUSINESS LICENSES AND OTHER LICENSES, PERMITS AND APPROVALS FOR MARIJUANA/CANNABIS RELATED BUSINESSES AND USES WHEREAS, Initiative Measure No. 502 (1-502), approved by the voters of Washington State on November 6, 2012, legalized the production, sale and use of marijuana products purchased from State licensed stores for adults age twenty-one 21) and over; and WHEREAS, I-502 Section 4 (3) allows the Washington State Liquor Control Board [aka the Liquor and Cannabis Board] to license marijuana retailers to sell usable marijuana and marijuana-infused products at retail in retail outlets; and WHEREAS, 1-502 Section 13 limited the number of retail outlets to be licensed in each county for the purpose of making usable marijuana and marijuana- infused products available for sale to adults twenty-one (21) years of age or over, which initial limitation was applied to Auburn as restricting 4he number of retail outlets to two (2) such businesses for the City of Auburn; and WHEREAS, on September 2, 2014 the Aubu n City Council adopted Ordinance 6525, related to the state regulation of production, processing and/or retail outlets and sales of marijuana; and WHEREAS, Second Engrossed Substitute House Bill 2136 and Senate Bill 5052 revised state requirements for state marijuana regulations; and WHEREAS, the Liquor and Cannabis Board issued a letter on September 23, 2015, stating that the Board be allowing additional retail stores, increasing the number of stores beyond the initial limitation on the number of licensed retail stores; and Resolution No. 5194 December 21, 2015 Page 1 of 5 PH.1 Page 6 of 109 WIiEREAS, the Liquor and Cannabis Board also advised that local jurisdic4ions may choose to promulgate rules or ordinances that address concerns about the increase in the number of retail stores; and WHEREAS, the Auburn City Code does not currently have specific provisions addressing the number of allowed marijuana retail locations; and WHEREAS, sections 35A.63.220 and 36.70A.390 of the Revised Code of Washington (RCW) authorize the City Council to adopt an immediate moratorium for a period of up to twelve (12) months if a public hearing on the proposal is held within at least sixty (60) days of its adoption and a work plan is developed for related studies providing for the moratorium period; and WHEREAS, the City Council desires to impose an immediate twelve (12) month moratorium on the acceptance of any permit application or business license or application for the siting, location or operation of any new marijuana retailers; ancl WHEREAS, the City Council anticipates that it can develop and adopt appropriate controls for marijuana retail facilities prior to the expiration of the moratorium enacted hereby; and WHEREAS, in the event permanent regulations are adopted prior to the expiration of 4he 12 month moratorium established by this Resolution, this Resolution may be repealed, terminating the moratorium. NOW, THEREFORE, THE CITY COUNCIL OF THE CITY OF AUBURN, WASHINGTON, HEREBY RESOLVES as follows: Section 1. FINDINGS. The above "Whereas" paragraphs constitute findings of fact in support of the moratorium established by this Resolution and said findings are fully incorporated into this Resolution. Section 2. MORATORIUM. Pursuant to the provisions of sections 35A.63.220 and 36.70A.390 RCW, the moratorium established by this Resolution prohibits the Resolution No. 5194 December 21, 2015 Page 2 of 5 PH.1 Page 7 of 109 acceptance of any applications for business licenses or permits, or any applications for the siting, location land use permits or operation of any new marijuana retailers in the City of Auburn. This moratorium shall not prohibit the operation of retail marijuana businesses which lawfully exist in the City under State law and/or City Ordinances prior to the effective date of this Resolution and shall not preclude renewal of existing licenses for businesses which continue tb be in lawful operation at the time of such renewal. Section 3 TERM OF MORATORIUM. The moratorium imposed by this Resolution shall become effective on the date hereof, and shall continue in effect for an initial period of one year, unless repealed, extended or modified by the City Council after subsequent public hearing(s) and entry of appropriate findings of fact pursuant to RCW 35A.63.220, provided that the moratorium shall automatically expire upon the effective date of zoning and land use regulations adopted by the City Council to address the implementation of the State's licensing of any marijuana/cannabis related business to be located in the City of Auburn. Section 4. WORK PLAN. The following work plan is adopted to addres.s the issues involving marijuana/cannabis related business regulations: A. The City of Aubu n Planning Commission shall be authorized and directed to hold public hearings and public meetings to fully receive and consider statements, testimony, positions and other documentation or evidence related to the issue of marijuana/cannabis related businesses, including, but not limited to, regulations related to the number of allowed retail businesses. B. The Planning Commission and City staff are aufhorized and directed to review the experiences of other jurisdictions, the status of legal cases, and statistical data, information, studies and other evidence compiled by other municipalities, of adverse impacts of marijuana/cannabis related businesses, and to review State and Federal law and regulations and the regulations, ordinances and codes adopted and implemented by other municipalities to address marijuana/cannabis related business land uses, and any other information that is pertinent to consideration of marijuana/cannabis related businesses, including, but not limited to, regulations related to the number of allowed retail businesses. C. The City of Auburn Planning Commission shall work with City staff and the citizenry of the City to develop proposals for regulation of marijuana/cannabis related business land uses and zoning considerations, to be forwarded in their recommendations to the City Council for inclusion in Resblution No. 5194 December 21, 2015 Page 3 of 5 PH.1 Page 8 of 109 ordinances and ultimate adoption as a part of the City Code of the City of Auburn, including regulations related to the number of allowed retail businesses. D. The Mayor, in consultation with the City Attorney, Community Development and Public Works Director, the Police Chief and other staff, shall periodically advise and report to the City Council as to the status of hearings, meetings and information development regarding activities of the Planning Commission and City staff relative to the evaluation, consideration and development of regulations related to marijuana/cannabis related business land uses, including, but not limited to, regulations related to the number of allowed retail businesses, with such reports to be scheduled approximately every six (6) months or as appropriate throughout the period of the moratorium and any extensions thereof, until adoption of a comprehensive ordinance as developed, relating to marijuana/cannabis related business land uses becoming effective in conjunction with the termination of the moratorium referred to in this Resolution. Section 5. PUBLIC HEARING. A public hearing shall be scheduled for 7:00 p.m. or as soon thereafter as the matter may be heard, on the 16th day of February, 2016, in City Council Chambers, 25 West Main Street, Auburn, Washington 98001, to hear and consider the comments and testimony of those wishing to speak at such public hearing regarding the moratorium. Section 6. RESOLUTION TO BE TRANSMITTED TO STATE. Pursuant to RCW 36.70A.106, a copy of this Resolution shall be transmitted to the Washington State Department of Commerce. A copy of this Resolution shall also be transmitted to the Washington State Liquor and Cannabis Board. Section 7. SEVERABILITY. If any sections, sentence, clause or phrase of this Resolution shall be held to be invalid or unconstitutional by a court of competent jurisdiction, or its application held inapplicable to any person, property or circumstance, such invalidity or unconstitutionality or inapplicability shall not effect the validity or constitutionality of any other section, sentence, clause or phrase of this Resolution or its application to any other person, property or circumstance. Resolution No. 5194 Decem ber 21, 2015 Page 4 of 5 PH.1 Page 9 of 109 Section 8. ADMINISTRATIVE PROCEDURES. The Mayor is authorized to implement such administrative procedures as may be necessary to carry out the directives of this legislation. Section 9. EFFECTIVE DATE. This Resolution shall take effect and be in full force upon passage and signatures hereon. Dated and Signed this ` day of 2016. CITY OF AUBURN ANCY B I S, MAYOR ATTEST: aa`t Danielle E. Daskam, City Clerk APP ED AS TO FORM: iel B. Hei , y Attorney Resolution No. 5194 December 21, 2015 Page 5 of 5 PH.1 Page 10 of 109 AGENDA BILL APPROVAL FORM Agenda Subject: Minutes of the February 1, 2016 Meeting Date: February 10, 2016 Department: Administration Attachments: Minutes Budget Impact: $0 Administrative Recommendation: Background Summary: Reviewed by Council Committees: Councilmember:Staff: Meeting Date:February 16, 2016 Item Number:CA.A AUBURN * MORE THAN YOU IMAGINEDCA.A Page 11 of 109 City Council Meeting February 1, 2016 - 7:00 PM Auburn City Hall MINUTES I. CALL TO ORDER A. Pledge of Allegiance Mayor Nancy Backus called the meeting to order at 7:00 p.m. in the Council Chambers at Auburn City Hall, 25 West Main Street in Auburn. Mayor Backus led those in attendance in the Pledge of Allegiance. B. Roll Call City Councilmembers present: Deputy Mayor Wales, Bob Baggett, Claude DaCorsi, John Holman, Bill Peloza, Yolanda Trout, and Rich Wagner. Department Directors and staff members present included: Finance Director Shelley Coleman, Community Development and Public Works Director Kevin Snyder, Director of Administration Dana Hinman, Assistant Director of Engineering Services/City Engineer Ingrid Gaub, Parks, Arts and Recreation Director Daryl Faber, Innovation and Technology Director Paul Haugan, Police Commander Mike Hirman, Assistant City Attorney Doug Ruth and City Clerk Danielle Daskam. II. ANNOUNCEMENTS, PROCLAMATIONS, AND PRESENTATIONS A. MultiCare Health System Presentation Bill Robertson, President & CEO and Lois Berstein, Sr. Vice President of Community Health Services Mr. Bill Robertson, President of MultiCare Health System, spoke about MultiCare's partnership with the City of Auburn and others to be part of a Blue Ribbon Committee with a goal of Auburn as the healthiest city in the state of Washington. Mayor Backus reported the kickoff meeting for Auburn-the Healthiest City in Washington Blue Ribbon Committee will take place in the next few weeks. The program will be managed by Pat Bailey on behalf of the City of Auburn. Mayor Backus stated it is not acceptable that the life expectancy for residents of South King County is 10-13 years lower than residents of east and north King County. Mayor Backus thanked MultiCare and other members of the Blue Ribbon Committee for their support in building a healthier Auburn. B. Goodwill Ambassadors Proclamation Mayor Backus to proclaim Cami Werden, Miss Auburn 2016 and Jaclyn Seifert, Miss Auburn's Outstanding Teen 2016 as "Goodwill Ambassadors for the City of Auburn" during their year of service to the Auburn community. Mayor Backus read and presented a proclamation designating Miss Auburn 2016 Cami Werden and Miss Auburn's Outstanding Teen 2016 Jaclyn Seifert as "Goodwill Ambassadors for the City of Auburn." Page 1 of 7 CA.A Page 12 of 109 Mayor Backus congratulated each young lady for their accomplishments. Miss Auburn Cami Werden and Miss Auburn's Outstanding Teen Jaclyn Seifert thanked Mayor Backus, the Council, and the community for their support, and each spoke regarding their platform and their gratitude and anticipation to serve as goodwill ambassadors for the City. III. APPOINTMENTS A. Appointments to Boards and Commissions Mayor and City Council to approve the following Boards and Commission appointments. The appointments are each a three year term and will expire on December 31, 2018: Airport Board Sparrow Tang Gary Gustafson Auburn Lodging Tax Advisory Board Andy Cho Deputy Mayor Wales moved and Councilmember Peloza seconded to confirm the appointment of Sparrow Tang and Gary Gustafson to the Airport Board and Andy Cho to the Auburn Lodging Tax Advisory Board for a three year term expiring December 31, 2018. MOTION CARRIED UNANIMOUSLY. 7-0 IV. AGENDA MODIFICATIONS There was no change to the agenda. V. CITIZEN INPUT, PUBLIC HEARINGS & CORRESPONDENCE A. Public Hearings B. Audience Participation This is the place on the agenda where the public is invited to speak to the City Council on any issue. Those wishing to speak are reminded to sign in on the form provided. Rich Rutkowski, 2554 Forest Ridge Drive SE, Auburn Mr. Rutkowski introduced himself as a resident of the Forest Ridge neighborhood and presented each Councilmember with a handout labeled "Presentation of Petitions to the Mayor & City Council." Mr. Rutkowski recalled that Ordinance No. 4785 and Resolution No. 2665 provide that access to the two stub streets between the Riverwalk and Forest Ridge neighborhoods shall be gated and barricaded and shall be open for emergencies only. Mr. Rutkowski explained that petitions were circulated in both neighborhoods -- one to open the gates and the other to keep the gates locked. Mr. Rutkowski presented the signed petitions from residents of the Forest Ridge neighborhood. According to Mr. Rutkowski, the majority of those signing the petitions in the Forest Ridge neighborhood request the City Council confirm the previous ordinance and resolution and keep the gates between the two neighborhoods locked and barricaded except for emergencies. Page 2 of 7 CA.A Page 13 of 109 Joe Santamaria, 2309 28th Court SE, Auburn Mr. Santamaria spoke on behalf of the members of the Riverwalk Homeowners' Association (HOA). Mr. Santamaria presented the signed petitions from residents of the Riverwalk neighborhood. According to Mr. Santamaria, the majority of those signing the petitions in the Riverwalk neighborhood request the City Council confirm the previous ordinance and resolution and keep the gates between the two neighborhoods locked and barricaded except for emergencies to ensure the stability and tranquility of the neighborhoods. C. Correspondence There was no correspondence for Council review. VI. COUNCIL AD HOC COMMITTEE REPORTS Council Ad Hoc Committee Chairs may report on the status of their ad hoc Council Committees' progress on assigned tasks and may give their recommendations to the City Council, if any. Councilmember Trout reported on behalf of the Council ad hoc committee that reviews claims and payroll vouchers. Councilmember Trout reported that she and Councilmember DaCorsi reviewed claims and payroll vouchers as presented and described on this evening's Consent Agenda, and the committee recommends their approval. Deputy Mayor Wales reported on behalf of the Council ad hoc committee on committees. The committee will be reviewing the committee structure and implementing a reporting form for committee work. Deputy Mayor Wales added that she has requested Mayor Backus designate a staff person to assist the committee in completing its work. VII. CONSENT AGENDA All matters listed on the Consent Agenda are considered by the City Council to be routine and will be enacted by one motion in the form listed. A. Minutes of the January 19, 2016 City Council Meeting B. Claims Vouchers (Coleman) Claims voucher numbers 437183 through 437348 in the amount of $1,943,037.32 and four wire transfers in the amount of $164,685.98 and dated February 1, 2016. C. Payroll Vouchers (Coleman) Payroll check numbers 536193 through 536225 in the amount of $689,429.77 and electronic deposit transmissions in the amount of $1,387,256.78 for a grand total of $2,076,686.55 for the period covering January 14, 2016 to January 27, 2016. D. Public Works Project No. CP1412 (Snyder) City Council approve Change Order No. 2 in the amount of $94,555.44 to Contract No. 15-12 for work on Project No. CP1412 (Auburn Community and Teen Center). Deputy Mayor Wales moved and Councilmember Baggett seconded to approve the Consent Agenda. Page 3 of 7 CA.A Page 14 of 109 MOTION CARRIED UNANIMOUSLY. 7-0 VIII. UNFINISHED BUSINESS There was no unfinished business. IX. NEW BUSINESS There was no new business. X. ORDINANCES A. Ordinance No. 6587, First Reading (Coleman) An Ordinance of the City Council of the City of Auburn, Washington, authorizing the issuance of a Limited Tax General Obligation Refunding Bond of the City in the principal amount of not to exceed $4,000,000 for the purpose of refunding certain outstanding Limited Tax General Obligation Bonds of the City; providing the form of the bond; and authorizing the sale of the bond Deputy Mayor Wales moved and Councilmember Holman seconded to adopt Ordinance No. 6587. Deputy Mayor Wales reported the ordinance was discussed in a previous study session. In response to a question from Councilmember DaCorsi regarding legal investments referenced on page 15 of the ordinance document, Bond Counsel Deanna Gregory of Pacifica Law Group explained the language in Section 9 of the ordinance is controlled by both federal and state law. The bond proceeds will be placed in an escrow account and be used solely to pay debt service to pay off the refunded bonds and not be invested in any cost of issuance. B. Ordinance No. 6588, First Reading (Coleman) An Ordinance of the City Council of the City of Auburn, Washington, establishing the Local Sales and Use Tax rate for Local Revitalization Financing for 2016 Councilmember Holman moved and Deputy Mayor Wales seconded to adopt Ordinance No. 6588. Councilmember Holman explained the ordinance levies a tax credit against state sales tax for local revitalization financing of public improvements. XI. RESOLUTIONS A. Resolution No. 5203 (Faber) A Resolution of the City Council of the City of Auburn, Washington, authorizing the Mayor to execute an amendment to the Conservation Futures Interlocal Cooperation Agreement between King County and the City of Auburn for Open Space Acquisition Projects Deputy Mayor Wales moved and Councilmember Trout seconded to adopt Resolution No. 5203. Page 4 of 7 CA.A Page 15 of 109 Resolution No. 5203 amends the Conservation Futures Interlocal Agreement between the City and King County to allow for allocation of funds for open space acquisition and development beneficial to the campus at Les Gove Park. MOTION CARRIED UNANIMOUSLY. 7-0 B. Resolution No. 5204 (Hinman) A Resolution of the City Council of the City of Auburn, Washington, approving the Lodging Tax Grant disbursements recommended by the Auburn Lodging Tax Advisory Committee and the Auburn Tourism Board Councilmember Peloza moved and Councilmember DaCorsi seconded to adopt Resolution No. 5204. Resolution No. 5204 approves allocation of lodging tax dollars as recommended by the Lodging Tax Advisory Committee. MOTION CARRIED UNANIMOUSLY. 7-0 C. Resolution No. 5207 (Coleman) A Resolution of the City Council of the City of Auburn, Washington, authorizing the City of Auburn to impose a Sales and Use Tax as authorized by RCW 82.14.415 as a credit against State Sales and Use Tax, relating to annexations Deputy Mayor Wales moved and Councilmember Peloza seconded to adopt Resolution No. 5207. Resolution No. 5207 levies a 0.1% sales tax credit against the state sales tax for annexation of the Lea Hill area. MOTION CARRIED UNANIMOUSLY. 7-0 D. Resolution No. 5208 (Snyder) A Resolution of the City Council of the City of Auburn, Washington, authorizing the Mayor to accept federal grant funds to be administered through the Washington State Department of Transportation Deputy Mayor Wales moved and Councilmember Trout seconded to adopt Resolution No. 5208. Deputy Mayor Wales stated the resolution authorizes the Mayor to accept federal grant funds through the Washington State Department of Transportation for streets. The funds will be used for the Lake Tapps Parkway Preservation Project and the 15th Street NW/NE Preservation Project. Councilmember Wagner stated the funding is an example of the preservation funding allocated through the Puget Sound Regional Council (PSRC) over the years and which the PSRC is considering to reduce. Councilmember Wagner spoke in favor of continuing to use federal funds for street and road preservation. MOTION CARRIED UNANIMOUSLY. 7-0 Page 5 of 7 CA.A Page 16 of 109 XII. MAYOR AND COUNCILMEMBER REPORTS At this time the Mayor and City Council may report on their significant City-related activities since the last regular Council meeting. A. From the Council Deputy Mayor Wales reported on the work of the Junior City Council, whose members will travel to Washington, DC, in March and attend the National League of Cities Conference. Deputy Mayor Wales also spoke regarding the County Board of Health efforts relating to the Zika virus and vaping regulations. Councilmember DaCorsi reported on his attendance at the Regional Transit Committee meeting where the Committee voted on its Strategic Plan and received a briefing on service guidelines for the Regional Transit Committee. Councilmember Holman reported on his attendance at the ribbon cutting ceremony for the Green River College Mel Lindbloom Student Union Building. The new student union building is named for the first president of Green River College, and its construction was funded by the students through a tax on themselves. Councilmember Peloza reminded that the National League of Cities prescription drug discount program is available to residents of the City of Auburn. The prescription drug discount card program began in the city in 2009, and in the past six years has provided $157,000.00 in savings to 7,600 participants. Councilmember Peloza also reported on his attendance at the Green Duwamish Watershed Advisory Group meeting. Councilmember Baggett reported on his attendance at the Association of Washington Cities legislative days at the capitol and where Councilmembers had the opportunity to visit with state legislators and convey the City's legislative agenda. Councilmember Trout reported on her participation in a Domestic Violence Task Force teleconference, where members of the Task Force discussed upcoming agenda items and pending legislation related to firearms surrender. B. From the Mayor Mayor Backus reported on her attendance at the U.S. Congress of Mayors where she met with aides for Senator Murray and Congressman Reichert to discuss the legislative priorities of the City, participated as a member of the Veterans Affairs Task Force, and visited the White House and met with President Obama. Mayor Backus also reported on her attendance at the Miss Auburn Scholarship Program, a meeting with Congressman Reichert regarding the General Services Administration's project for a replacement building, and the Sound Transit Board meeting where Mayor Backus made the motion that will reinstate funding for the second parking garage in Auburn. Mayor Backus also reported she attended the Sound Cities Association Executive Board retreat where she was elected president of the Board for the Sound Cities Association for the upcoming year. Page 6 of 7 CA.A Page 17 of 109 XIII. ADJOURNMENT There being no further business to come before the Council, the meeting adjourned at 7:57 p.m. APPROVED this 16th day of February, 2016. ___________________________________ ______________________________ NANCY BACKUS, MAYOR Danielle Daskam, City Clerk Page 7 of 7 CA.A Page 18 of 109 AGENDA BILL APPROVAL FORM Agenda Subject: Minutes of the January 25, 2016 Special Meeting Date: January 28, 2016 Department: Administration Attachments: 1-25-2016 Special Meeting Minutes Budget Impact: $0 Administrative Recommendation: Background Summary: Reviewed by Council Committees: Councilmember:Staff: Meeting Date:February 16, 2016 Item Number:CA.B AUBURN * MORE THAN YOU IMAGINEDCA.B Page 19 of 109 Special City Council Meeting January 25, 2016 - 5:30 PM Auburn City Hall MINUTES I. CALL TO ORDER Mayor Nancy Backus called the meeting to order at 5:30 p.m. in the Council Chambers located in Auburn City Hall, 25 West Main Street in Auburn, and led those in attendance in the Pledge of Allegiance. City Councilmembers present: Deputy Mayor Wales, Bob Baggett, Claude DaCorsi, John Holman, Bill Peloza,Yolanda Trout and Rich Wagner. Department directors and staff members present included: City Attorney Daniel B. Heid, Director of Administration Dana Hinman, Community Services Assistant Emily Pearson, Property and Facilities Analyst Josh Arndt, Economic Development Manager Doug Lein, Police Chief Bob Lee, Police Commander Jamie Sidell, Community Development and Public Works Director Kevin Snyder, Assistant Director of Engineering Services/City Engineer Ingrid Gaub, Assistant Director of Community Development Services Jeff Tate, Planning Services Manager Jeff Dixon, Assistant Director of Public Works Services Randy Bailey, Human Resources and Risk Management Director Rob Roscoe, Finance Director Shelley Coleman, Park, Arts and Recreation Director Daryl Faber, Innovation and Technology Director Paul Haugan and Deputy City Clerk Shawn Campbell. II. RESOLUTIONS A. Resolution No. 5200 (Hinman) A Resolution of the City Council of the City of Auburn, Washington, authorizing the Mayor to execute the real estate purchase and sale agreement between the City of Auburn and King County Director of Administration Dana Hinman, Properties and Facilities Analyst Josh Arndt and Economic Development Manager Doug Lein presented Resolution No. 5200 to Council. Property and Facilities Analyst Arndt explained the funds budgeted for this property will cover the purchase price and needed repairs. Economic Development Manager Lein stated the building is on both the State of Washington and Federal historical registries. Deputy Mayor Wales asked how many parking stalls come with the purchase. Economic Development Manager Lein stated there are approximately 20 parking stalls. Economic Development Manager Lein stated the City has received a grant for $250,000 for historical preservation on this building. The funds Page 1 of 2 CA.B Page 20 of 109 should cover repairs to the existing floors, removing tenant improvements, fixing windows and roof repairs. Councilmember Baggett asked how much of the total space is planned to be devoted to the arts center. Economic Development Manager Lein stated at least 50% for the space will be used for the arts center. The City has received many requests for the use of the space. Mayor Backus thanked Doug Lein, Josh Arndt, Dana Hinman and Daryl Faber for their hard work in acquiring this property. The City has been trying to purchase this building for a long time and through the hard work of staff it has finally happened. Councilmember Holman moved and Councilmember DaCorsi seconded to adopt Resolution No. 5200. Councilmember Wagner thanked the County Executive and staff for working with the City to make this property acquisition possible. MOTION CARRIED UNANIMOUSLY. 7-0 III. ADJOURNMENT There being no further business to come before the Council, the meeting adjourned at 5:39 p.m. APPROVED this 1st day of February, 2016. ________________________________ ______________________________ NANCY BACKUS, MAYOR Shawn Campbell, Deputy City Clerk Page 2 of 2 CA.B Page 21 of 109 AGENDA BILL APPROVAL FORM Agenda Subject: Minutes of the October 29-30, 2015 Special City Council Meeting Date: February 5, 2016 Department: Administration Attachments: October 29-30, 2016 Special Meeting Minutes Budget Impact: $0 Administrative Recommendation: Background Summary: Reviewed by Council Committees: Councilmember:Staff: Meeting Date:February 16, 2016 Item Number:CA.C AUBURN * MORE THAN YOU IMAGINEDCA.C Page 22 of 109 Special City Council Meeting October 29, 2015 - 8:00 AM Wesley Homes, 32049 109th Pl SE, Auburn, WA 98092 MINUTES I. CALL TO ORDER The Aubum City Council met in a special session on October 29 and 30, 2015 in order to conduct a Council Retreat. The session was conducted at Wesley Homes, 32049 109th Pl SE, Auburn. The meeting was called to order at 9:00 a.m. by Mayor Nancy Backus and the following Councilmembers were present: Rich Wagner, Bill Peloza, Yolanda Trout, Wayne Osborne, John Holman, Largo Wales and Claude DaCorsi. Directors and staff members present included: City Attorney Daniel B. Heid, Finance Director Shelley Coleman, Community Development and Public Works Director Kevin Snyder, Human Resources Director Rob Roscoe, Director of Administration Dana Hinman, Innovation and Technology Director Paul Haugen, Chief of Police Bob Lee, Park, Arts and Recreation Director Daryl Faber, Economic Development Manager Doug Lein, Executive Assistant Tamie Bothell, and Deputy City Clerk Shawn Campbell. II. DISCUSSION ITEMS A. Council Retreat October 29-30 Mayor Backus reminded those present that at last years retreat, Council set goals thirty to fifty years in the future. The intent of this years Council Retreat is to set goals for one, three and five years to help achieve the 30 to 50 year visioning goals for the City. She introduced Andrew Ballard from Marketing Solutions as the facilitator. Mr. Ballard explained the process the Council and staff will participate in. The group will create three high level goals, then break up into teams and each team will make a presentation on strategies on how to attain the goal. Everyone not on that team will have the opportunity to have input to the other team's ideas. The group reviewed the objective of the meeting, to come to a consensus on a strategic plan with a short set of priority goals, strategies and initiatives that fit the City's mission statement of: To provide a service oriented government that meets the needs of our citizens and business community. The directors reviewed initiatives that are in progress in each of their departments. The group identified strengths within the City including a defined downtown, good geographical location, a strong financial foundation, great regional relationships, community pride, good existing leadership by Mayor and Council and directors, collaborative culture with key stakeholders, great parks and entertainment within the City, good public safety creating a safe community and outstanding city services. The group identified weaknesses within the City including: lack of follow through with property management, public perception, low self-image of City by citizens, under developed post-secondary education, lack of diversity among decision makers, limited revenue opportunities, City leaders not good storytellers /promoters, constraints on resources and time, lack of long term planning with key stakeholders and a risk adverse City culture. The Page 1 of 4 CA.C Page 23 of 109 group then identified opportunities they see within the City including: having a diverse culture, emerging infrastructure of technology, emerging industry cluster, a public culture of giving, the citizens being willing to engage, ample underutilized warehouse space property, annexation potential and higher education opportunities. The group then identified the threats they see for the City including: impacts of Low Impact Development on the City, empty store fronts, limited development opportunities, transportation limitations, litigation, adverse legislation, gang violence, natural disasters, economic downturn and the suburbanization of poverty. Mr. Ballard had the group vote on their top three for each category: Strengths: 29 votes – strong financial foundation 25 votes – geographical location 21 votes – great leadership Opportunities: 20 votes - emerging industry cluster 19 votes - ample warehouse 15 votes - emerging technology Weakness: 34 votes – limited revenue resources 14 votes – lack of long term planning with key stakeholders 13 votes – citizens low self esteem Threats: 34 votes - suburbanization of poverty 27 votes – legislation regulation 11 votes - empty store fronts At 4:45p.m. Mayor Backus recessed the retreat until 8:00a.m. on October 29, 2016 Mr. Ballard helped the group identify three main goals for the City to be accomplished by 2020. The group broke up into three subgroups and identified strategies to attain those goals and initiatives to facilitate those strategies. Below is the City of Auburn Strategy Matrix: Goal 1 Increase "Healthy City" Index by % by 2020 G1/S1: Promote healthy lifestyle for all ages G1/S1/I1: Obtain buy in from elected Jr. City Council, community groups and businesses G1/S1/I2: Create educational marketing campaign G1/S1/I3: Roll out neighborhood programs G1/S1/I4: Increase opportunities for healthy food choices. Grow local buy local G1/S2: Create access to preventative and on-going healthcare G1/S2/I1 Convene group of leaders to identify appropriate outreach & how to Page 2 of 4 CA.C Page 24 of 109 apply (mediums?) G1/S2/I2: Establish partnerships with providers G1/S2/I3: Establish healthcare inventory with the city G1/S2/I4: Lobby for legislative support reform of public health G1/S3: Provide full spectrum of mental health and social service resources. G1/S3/I1: Determine Explore City leadership's overall philosophy on issues G1/S3/I2: Explore alternate service delivery models G1/S3/I3: Review budget priorities to determine need for additional funding & sources G1/S3/I4: Develop marketing campaign to remove "stigma" G1/S3/I5: Lobby legislature (county state federal) for additional funding and reform G1/S4: Increase healthy accessible housing stock G1/S4/I1: Engage community and other stakeholders e.g.-Homelessness Task Force G1/S4/I2: Determine City leadership philosophy and budgeting priorities G1/S4/I3: Create housing inventory and program approaches and metrics Goal 2: Increase Internet Access to Achieve Digital Parity by % by 2020 G2/S1: Explore the establishment of an internet utility G2/S1/I1: Research and analyze other successful examples G2/S1/I2: Perform cost benefit analysis G2/S1/I3: Perform regulatory assessment G2/S1/I4: Assess political landscape G2/S1/I5: Prepare campaign G2/S2: Leverage public technology infrastructure to achieve cyber-equity within the city G2/S2/I1: Inventory available infrastructure (local, universal, etc.) G2/S2/I2: Assess options and opportunities G2/S2/I3: Perform legal assessment G2/S2/I4 :Perform gap analysis G2/S3: Build partnerships for revenue streams and infrastructure expansion G2/S3/I1: Inventory current partnerships G2/S3/I2: Reach out to current and potential partners G2/S3/I3: Formalize partnerships (lather, rinse , repeat) G2/S4: Establish minimum acceptable standards, speed, security and liability exposure G2/S4/I1: Perform needs assessment G2/S4/I2: Define delivery methods (Wi-Fi vs. Wired) G2/S4/I3: Perform liability assessment G2/S4/I4: Access regulatory standards, public acceptance and political reality G2/S4/I5: Establish operating standards G2/S5: Expand services to capture emerging opportunities G2/S5/I1: Assess emerging technologies G2/S5/I2: Engage public to identify needs G2/S5/I3: Perform viability and cost assessment G2/S5/I4: Develop process for integration (maintenance, sustainability, budget, etc.) Page 3 of 4 CA.C Page 25 of 109 Goal 3: Increase Middle Income Jobs by % by 2020 G3/S1: Identify existing and potential employers and locations for future business growth G3/S2: Explore existing and potential tools and incentives to increase and retain middle income jobs G3/S2/I3: Develop marketing strategy to advertise the City: i.e.-billboards, TV, radio, internet G3/S2/I4: Benchmark and identify competition G3/S2/I5: Work with counties and citizen group to explore annexations G3/S3: Have transit services and roads to reach employment centers G3/S3/I1: Identify cash flow needs related to development costs to defray / delay development costs G3/S3/I3: Work with federal and state electeds to increase/expand. Create incentive programs - i.e. TIF G3/S4: Promote H.E and workforce development for employees living or working in Auburn G3/S4/I1: Develop inventory of available properties including for annexation, development and redevelopment G3/S4/I1: Work with regional transits and user groups, i.e. MIT, business, schools, seniors G3/S4/I2: Work with Chamber Economic Development Board and business community to identify potential employers G3/S4/I2: Work with federal, state and county for road improvement projects G3/S5/I1: Work with employers to identify their workforce skills, needs and requirements G3/S5/I2: Work with k-12 and higher education to develop curriculum to match employers skills, needs and requirements G3/S5/I3: Promote employees- employer interaction via job fairs, social media, etc. for people living/working in Auburn Mayor Backus noted the Strategy Matrix is intended to be a living document. The matrix and goals will be brought back to Council during Study Sessions for updates. III. ADJOURNMENT There being no further business to come before the Council, the meeting adjourned on October 30, 2016 at 11:36 p.m. APPROVED this 16th day of February, 2016. ____________________________________ _______________________________ NANCY BACKUS, MAYOR Shawn Campbell, Deputy City Clerk Page 4 of 4 CA.C Page 26 of 109 AGENDA BILL APPROVAL FORM Agenda Subject: Claims Vouchers Date: February 10, 2016 Department: Finance Attachments: No Attachments Available Budget Impact: $0 Administrative Recommendation: City Council approve claims vouchers. Background Summary: Claims voucher numbers 437349 through 437533 in the amount of $2,588,573.43 and five wire transfers in the amount of $537,699.18 and dated February 16, 2016. Reviewed by Council Committees: Councilmember:Staff:Coleman Meeting Date:February 16, 2016 Item Number:CA.D AUBURN * MORE THAN YOU IMAGINEDCA.D Page 27 of 109 AGENDA BILL APPROVAL FORM Agenda Subject: Payroll Vouchers Date: February 10, 2016 Department: Administration Attachments: No Attachments Available Budget Impact: $0 Administrative Recommendation: City Council to approve payroll vouchers. Background Summary: Payroll check numbers 536226 through 536260 in the amount of $566,172.02 and electronic deposit transmissions in the amount of $1,408,021.39 for a grand total of $1,974,193.41 for the period covering January 28, 2016 to February 10, 2016. Reviewed by Council Committees: Councilmember:Staff:Coleman Meeting Date:February 16, 2016 Item Number:CA.E AUBURN * MORE THAN YOU IMAGINEDCA.E Page 28 of 109 AGENDA BILL APPROVAL FORM Agenda Subject: Public Works Project No. CP1414 Date: February 8, 2016 Department: CD & PW Attachments: Budget Status Sheet Final Pay Estimate No. 7 Vicinity Map Budget Impact: $0 Administrative Recommendation: City Council approve Final Pay Estimate No. 7 to Contract No. 15-10 in the amount of $21,232.18 and accept construction of Project No. CP1414, 2015 Local Street Reconstruction Project. Background Summary: This project was part of the City’s Local Street Preservation (SOS) program and rebuilt the following streets: 7th Street SE between A St SE and Auburn Way S; D Street SE between Auburn Way S and 12th St SE; D Street SE between 37th St SE and 41st St SE; and the east half of K Street SE between 17th St SE and 21st St SE. The Project also installed 1,365 lineal feet of sanitary sewer main, 3,563 lineal feet of 8-inch water main, new side sewer services for 33 residents, and new water services for 51 residents along the project streets. A project budget contingency of $144,815.00 remains in the Save Our Streets 103 Fund. A project budget contingency of $101,435.00 remains in the Water 430 Fund. A project budget contingency of $158,941.00 remains in the Sewer 431 Fund. The final contract amount is within the budget and within the authorized contingency for the project. Reviewed by Council Committees: Councilmember:Staff:Snyder Meeting Date:February 16, 2016 Item Number:CA.F AUBURN * MORE THAN YOU IMAGINEDCA.F Page 29 of 109 AUBURN * MORE THAN YOU IMAGINEDCA.F Page 30 of 109 Project No: CP1414 Project Title: Project Manager: Jai Carter PMP Initiation Date: _August 18, 2014_ Final Design Estimate Date: 2/8/16 Advertisement Date: __5/14/15 ____ Contract Award Award Date: ___June 1, 2015_____ Budget Carry Forward Contract Final Acceptance Funding Prior Years 201420152016*Total 103 Fund - Local Street 1,794,981163,6841,958,665 430 Fund - Water (Street Utility Improvements)577,443105,174682,617 431 Fund - Sanitary Sewer (Street Utility Improvements)328,331171,235499,566 Total 002,700,755440,0933,140,848 * 2016 budget amounts include carry forward amounts from 2015 that are included in BA #5, which is pending. Activity Prior Years 2014 (Actual)2015 (Actual)2016Total Design Engineering - City Costs*9,2669,266 Design Engineering - Consultant Costs 266,1017,500273,601 Construction Contract Bid 2,275,0012,275,001 Change order #1 23,01323,013 Change order #2 36,79436,794 Line Item Changes 32,51021,23253,742 Construction Engineering - City Costs*49,5884,57254,160 Construction expenses - Testing, Permits, etc.8,3051,5989,903 Total 002,700,57934,9022,735,481 *City staff costs for street design and construction are not charged against the project budget and are not shown here. Prior Years 201420152016Total ***103 Funds Budgeted ( )00(1,794,981)(163,684)(1,958,665) 103 Funds Needed 001,794,98118,8691,813,850 **103 Fund Project Contingency ( )0 0 0 (144,815)(144,815) 103 Funds Required 0 0 0 0 0 Prior Years 201420152016Total ***430 Funds Budgeted ( )00(577,443)(105,174)(682,617) 430 Funds Needed 00577,4433,739581,182 **430 Fund Project Contingency ( )0 0 0 (101,435)(101,435) 430 Funds Required 0 0 0 0 0 Prior Years 201420152016Total ***431 Funds Budgeted ( )00(328,331)(171,235.00)(499,566) 431 Funds Needed 00328,33112,294340,625 **431 Fund Project Contingency ( )0 0 0 (158,941)(158,941) 431 Funds Required 00000 *** ( # ) in the Budget Status Sections indicates Money the City has available. 103 Local Street Budget Status 430 Water Budget Status 431 Sanitary Sewer Budget Status BUDGET STATUS SHEET 2015 Local Street Pavement Reconstruction Project The "Future Years" column indicates the projected amount to be requested in future budgets. Funds Budgeted (Funds Available) Estimated Cost (Funds Needed) 1 of 1CA.F Page 31 of 109 CA.F Page 32 of 109 CA.F Page 33 of 109 CA.F Page 34 of 109 CA.F Page 35 of 109 CI T Y O F A U B U R N CP 1 4 1 4 , 2 0 1 5 L o c a l S t r e e t P a v e m e n t R e c o n s t r u c t i o n PR O J E C T S U M M A R Y CO. NO. 15-10 PA Y E S T I M A T E # 7 & F I N A L Or i g i n a l C o n t r a c t Am o u n t Co n t r a c t C h a n g e Or d e r s To t a l P a y m e n t T h i s P e r i o d P e r c e n t / C o n t r a c t SC H E D U L E A : S t r e e t I m p r o v e m e n t s Co n t r a c t 1 , 5 6 2 , 2 1 2 . 7 4 $ 9 , 4 4 9 . 2 0 $ 1, 6 1 3 , 7 6 1 . 7 1 $ 13,768.59 $ 103% Bo n d i n L i e u o f R e t a i n a g e SC H E D U L E T O T A L 1 , 5 6 2 , 2 1 2 . 7 4 $ 9 , 4 4 9 . 2 0 $ 1, 6 1 3 , 7 6 1 . 7 1 $ 1 3 , 7 6 8 . 5 9 $ SC H E D U L E B : S a n i t a r y S e w e r U t i l i t y I m p r o v m e n t s Co n t r a c t 2 0 9 , 0 4 4 . 3 5 $ 3 3 , 6 0 1 . 8 7 $ 25 4 , 1 9 1 . 2 0 $ 6 , 8 1 6 . 0 6 $ 1 0 5 % Sa l e s T a x ( + 9 . 5 % ) 1 9 , 8 5 9 . 2 1 $ 3 , 1 9 2 . 1 8 $ 2 4 , 1 4 8 . 1 6 $ 6 4 7 . 5 3 $ Bo n d i n L i e u o f R e t a i n a g e SC H E D U L E T O T A L 2 2 8 , 9 0 3 . 5 6 $ 3 6 , 7 9 4 . 0 5 $ 27 8 , 3 3 9 . 3 6 $ 7 , 4 6 3 . 5 9 $ SC H E D U L E C : W a t e r U t i l i t y I m p r o v e m e n t s Co n t r a c t 4 4 1 , 9 0 3 . 6 6 $ 1 2 , 3 8 7 . 2 0 $ 45 3 , 3 7 8 . 4 6 $ - $ 1 0 0 % Sa l e s T a x ( + 9 . 5 % ) 4 1 , 9 8 0 . 8 5 $ 1 , 1 7 6 . 7 8 $ 4 3 , 0 7 0 . 9 5 $ - $ Bo n d i n L i e u o f R e t a i n a g e SC H E D U L E T O T A L 4 8 3 , 8 8 4 . 5 1 $ 1 3 , 5 6 3 . 9 8 $ 49 6 , 4 4 9 . 4 1 $ - $ TO T A L C O N T R A C T A M O U N T T O D A T E (i n c l u d i n g S a l e s T a x ) 2 , 3 8 8 , 5 5 0 . 4 7 $ 105% TO T A L P A Y M E N T T O C O N T R A C T O R 2, 3 8 8 , 5 5 0 . 4 7 $ 2 1 , 2 3 2 . 1 8 $ PA Y M E N T D U E C O N T R A C T O R : 21,232.18 $ Pe r i o d D a t e s Be g i n : D e c . 2 1 , 2 0 1 5 En d : J a n . 2 0 , 2 0 1 6 h: \ p r o j \ p e \ C P 1 4 1 4 P E . x l s 5 o f 6 2/8/2016 at 12:13 PM CA . F Pa g e 3 6 o f 1 0 9 CA.F Page 37 of 109 CA.F Page 38 of 109 AGENDA BILL APPROVAL FORM Agenda Subject: Ordinance No. 6587, Second Reading Date: February 10, 2016 Department: Finance Attachments: Ordinance No. 6587 Budget Impact: $0 Administrative Recommendation: City Council adopt Ordinance No. 6587. Background Summary: The City has two outstanding bond issues eligible for refunding which would take advantage of the low interest rate environment; the 2005 and 2006A LTGO Bonds, which were issued for the construction of airport hangar rows 9 and 10 and the golf course and cemetery improvements, respectively. The refunding will be considered a private placement versus a public sale. Investors purchasing these bonds would be an accredited financial (Bank) or institutional investor (Insurance or retirement funds). Reviewed by Council Committees: Councilmember:Staff:Coleman Meeting Date:February 16, 2016 Item Number:ORD.A AUBURN * MORE THAN YOU IMAGINEDORD.A Page 39 of 109 10120 00003 fa05gn21ry.002 CITY OF AUBURN, WASHINGTON ORDINANCE NO. 6587 AN ORDINANCE OF THE CITY COUNCIL OF THE CITY OF AUBURN, WASHINGTON, AUTHORIZING THE ISSUANCE OF A LIMITED TAX GENERAL OBLIGATION REFUNDING BOND OF THE CITY IN THE PRINCIPAL AMOUNT OF NOT TO EXCEED $4,000,000 FOR THE PURPOSE OF REFUNDING CERTAIN OUTSTANDING LIMITED TAX GENERAL OBLIGATION BONDS OF THE CITY; PROVIDING THE FORM OF THE BOND; AND AUTHORIZING THE SALE OF THE BOND. Passed February 16, 2016 PREPARED BY: PACIFICA LAW GROUP LLP Seattle, Washington ORD.A Page 40 of 109 CITY OF AUBURN ORDINANCE NO. 6587 TABLE OF CONTENTS* Page Section 1. Definitions and Interpretation of Terms ..................................................................3 Section 2. Authorization of the Bond .......................................................................................6 Section 3. Bond Details.............................................................................................................6 Section 4. Registration, Exchange and Payments .....................................................................7 Section 5. Form of Bond ...........................................................................................................8 Section 6. Execution of Bond .................................................................................................11 Section 7. Application of Bond Proceeds; Plan of Refunding ................................................11 Section 8. Tax Covenants .......................................................................................................13 Section 9. Pledge of Funds and Credit; General Obligation ...................................................15 Section 10. Right of Prepayment ..............................................................................................16 Section 11. Issuance of the Bond ..............................................................................................16 Section 12. Ongoing Disclosure; Covenants ............................................................................17 Section 13. Lost, Stolen or Destroyed Bond .............................................................................18 Section 14. Severability; Ratification .......................................................................................18 Section 15. Effective Date of Ordinance ..................................................................................19 * This Table of Contents is provided for convenience only and is not a part of this ordinance. ORD.A Page 41 of 109 CITY OF AUBURN, WASHINGTON ORDINANCE NO. 6587 AN ORDINANCE OF THE CITY COUNCIL OF THE CITY OF AUBURN, WASHINGTON, AUTHORIZING THE ISSUANCE OF A LIMITED TAX GENERAL OBLIGATION REFUNDING BOND OF THE CITY IN THE PRINCIPAL AMOUNT OF NOT TO EXCEED $4,000,000 FOR THE PURPOSE OF REFUNDING CERTAIN OUTSTANDING LIMITED TAX GENERAL OBLIGATION BONDS OF THE CITY; PROVIDING THE FORM OF THE BOND; AND AUTHORIZING THE SALE OF THE BOND. WHEREAS, the City of Auburn, Washington (the “City”) has outstanding its Limited Tax General Obligation Refunding Bonds, 2005 (the “2005 Bonds”), issued on September 1, 2005, pursuant to Ordinance No. 5931 passed by the City Council (the “Council”) on August 15, 2005 (the “2005 Bond Ordinance”), which remain outstanding as follows: Maturity Dates (December 1) Principal Amounts Interest Rates 2017* $ 315,000 4.50% 2019* 365,000 4.50 *Term Bonds. WHEREAS, the 2005 Bond Ordinance provides that the 2005 Bonds maturing on or after December 1, 2017 (the “2005 Refunding Candidates”) may be refunded prior to their stated maturities at the option of the City on any date on or after December 1, 2015 as a whole or in part, at the price of par plus accrued interest, if any, to the date of redemption; and ORD.A Page 42 of 109 -2- 10120 00003 fa05gn21ry.002 WHEREAS, the City has outstanding its Limited Tax General Obligation Bonds, Series 2006A (the “2006A Bonds”), issued on August 22, 2006, pursuant to Ordinance No. 6039 passed by the Council on August 7, 2006 (the “2006A Bond Ordinance”), which remain outstanding as follows: Maturity Dates (December 1) Principal Amounts Interest Rates 2016 $ 265,000 5.00% 2017 280,000 4.50 2018 290,000 4.50 2019 305,000 4.50 2020 320,000 4.50 2021 330,000 4.50 2022 345,000 4.50 2023 360,000 4.50 2024 380,000 4.50 2025 395,000 4.50 WHEREAS, the 2006A Bond Ordinance provides that the 2006A Bonds maturing on or after December 1, 2017 (the “2006A Refunding Candidates,” and together with the 2005 Refunding Candidates, the “Refunding Candidates”) may be refunded prior to their stated maturities at the option of the City on any date on or after December 1, 2016 as a whole or in part, at the price of par plus accrued interest, if any, to the date of redemption; and WHEREAS, after due consideration it appears that all or a portion of the Refunding Candidates (the “Refunded Bonds”) may be defeased and refunded by the proceeds of limited tax general obligation bonds at a savings to the City and its taxpayers; and WHEREAS, the Council deems it in the best interest of the City to issue a limited tax general obligation refunding bond in the principal amount of not to exceed $4,000,000 (the “Bond”) to redeem and defease the Refunded Bonds and to pay costs of issuing the Bond; and ORD.A Page 43 of 109 -3- 10120 00003 fa05gn21ry.002 WHEREAS, the City intends to issue a request for proposals from various financial institutions to purchase the Bond; and WHEREAS, the Council now wishes to authorize the issuance of the Bond and the sale of the Bond to the successful respondent subject to the terms and conditions set forth in this ordinance; NOW, THEREFORE, THE CITY COUNCIL OF THE CITY OF AUBURN, WASHINGTON, DOES ORDAIN as follows: Section 1. Definitions and Interpretation of Terms. (a) Definitions. As used in this ordinance, the following words shall have the following meanings: Acquired Obligations means the Government Obligations acquired by the City under the terms of this ordinance and the Escrow Agreement to effect the defeasance and refunding of the Refunded Bonds. Bank means the financial institution that is the successful respondent to a request for proposals to purchase the Bond, selected by the Designated Representative. Bond means the Limited Tax General Obligation Refunding Bond, 2016 authorized to be issued by the City pursuant to this ordinance. Bond Counsel means Pacifica Law Group LLP, Seattle, Washington, or any other attorney or firm of attorneys, which is admitted to practice law before the highest court of any state in the United States of America or the District of Columbia and nationally recognized and experienced in legal work relating to the issuance of tax-exempt bonds who is or are selected by the City. ORD.A Page 44 of 109 -4- 10120 00003 fa05gn21ry.002 Bond Fund means the “Bond Redemption Fund” authorized to be created pursuant to Section 9 of this ordinance. Bond Register means the registration records for the Bond maintained by the Bond Registrar. Bond Registrar means the Finance Director of the City, whose duties include registering and authenticating the Bond, maintaining the Bond Register, transferring ownership of the Bond, and paying the principal of and interest on the Bond. Call Date or Call Dates means the dates set forth in the Escrow Agreement for the refunding of each series of the Refunded Bonds. City means the City of Auburn, Washington, a municipal corporation duly organized and existing under the laws of the State of Washington. City Council or Council means the City Council of the City as the general legislative authority of the City, as the same shall be duly and regularly constituted from time to time. Clerk means the duly appointed and acting City Clerk or the successor to the duties of that office. Code means the Internal Revenue Code of 1986, as amended, and shall include all applicable regulations and rulings relating thereto. Commitment means the commitment of the Bank to purchase the Bond. Designated Representative means the Finance Director, or his or her designee. Escrow Agent means U.S. Bank National Association, Seattle, Washington. Escrow Agreement means the Escrow Deposit Agreement between the City and the Escrow Agent authorized to be entered into pursuant to this ordinance. Federal Tax Certificate means the Federal Tax Certificate signed by the Finance Director pertaining to the tax-exemption of interest on the Bond. ORD.A Page 45 of 109 -5- 10120 00003 fa05gn21ry.002 Finance Director means the duly appointed and acting Finance Director of the City, the successor to the duties of that office, or his or her designee. Government Obligations mean those obligations now or hereafter defined as such in chapter 39.53 RCW. Mayor means the duly appointed and acting Mayor of the City or the successor to the duties of that office. Refunded Bonds mean those Refunding Candidates designated by the Finance Director for refunding pursuant to Section 7 and Section 11. Refunding Account means the account by that name established pursuant to Section 7. Refunding Candidates mean any or all of the 2005 Refunding Candidates and the 2006A Refunding Candidates as shown in the recitals to this ordinance. Registered Owner means the person in whose name the Bond is registered on the Bond Register. Rule means the Securities and Exchange Commission’s Rule 15c2-12 under the Securities Exchange Act of 1934, as the same may be amended from time to time. 2005 Bond Ordinance means Ordinance No. 5931 passed by the Council on August 15, 2005, authorizing the issuance of the 2005 Bonds. 2005 Bonds mean the Limited Tax General Obligation Refunding Bonds, 2005 of the City, issued pursuant to the 2005 Bond Ordinance as described in the recitals of this ordinance. 2006A Bond Ordinance means Ordinance No. 6039 passed by the Council on August 7, 2006, authorizing the issuance of the 2006A Bonds. 2006A Bonds mean the Limited Tax General Obligation Bonds, 2006A of the City, issued pursuant to the 2006A Bond Ordinance as described in the recitals of this ordinance. ORD.A Page 46 of 109 -6- 10120 00003 fa05gn21ry.002 (b) Interpretation. In this ordinance, unless the context otherwise requires: (1) The terms “hereby,” “hereof,” “hereto,” “herein,” “hereunder” and any similar terms, as used in this ordinance, refer to this ordinance as a whole and not to any particular article, section, subdivision or clause hereof, and the term “hereafter” shall mean after, and the term “heretofore” shall mean before, the date of this ordinance; (2) Words of the masculine gender shall mean and include correlative words of the feminine and neutral genders and words importing the singular number shall mean and include the plural number and vice versa; (3) Words importing persons shall include firms, associations, partnerships (including limited partnerships), trusts, corporations and other legal entities, including public bodies, as well as natural persons; (4) Any headings preceding the text of the several articles and sections of this ordinance, and any table of contents or marginal notes appended to copies hereof, shall be solely for convenience of reference and shall not constitute a part of this ordinance, nor shall they affect its meaning, construction or effect; and (5) All references herein to “articles,” “sections” and other subdivisions or clauses are to the corresponding articles, sections, subdivisions or clauses hereof. Section 2. Authorization of the Bond. For the purpose of refunding the Refunded Bonds and paying costs of issuance and the costs of the refunding, the City is hereby authorized to issue and sell a limited tax general obligation refunding bond in the principal amount of not to exceed $4,000,000 (the “Bond”). Section 3. Bond Details. The Bond shall be designated the “City of Auburn, Washington, Limited Tax General Obligation Refunding Bond, 2016,” or other such designation ORD.A Page 47 of 109 -7- 10120 00003 fa05gn21ry.002 as set forth in the Bond and approved by the Finance Director. The Bond shall be dated as of its date of delivery, shall be fully registered as to both principal and interest, shall be in one denomination, and shall mature on the date set forth in the Bond. The Bond shall bear interest from its dated date or the most recent date to which interest has been paid at the interest rate set forth in the Commitment. Interest on the principal amount of the Bond shall be calculated per annum on a 30/360 basis, or as otherwise provided in the Bond and in the Commitment. Principal of and interest on the Bond shall be payable at the times and in the amounts as set forth in the Commitment and in the payment schedule attached to the Bond. Section 4. Registration, Exchange and Payments. (a) Registrar/Bond Registrar. The Finance Director of the City shall act as Bond Registrar. The Bond Registrar is authorized, on behalf of the City, to authenticate and deliver the Bond if transferred or exchanged in accordance with the provisions of the Bond and this ordinance and to carry out all of the Bond Registrar’s powers and duties under this ordinance. (b) Registered Ownership. The City and the Bond Registrar may deem and treat the Registered Owner of the Bond as the absolute owner for all purposes, and neither the City nor the Bond Registrar shall be affected by any notice to the contrary. Payment of the Bond shall be made only as described in subsection (e) below. All such payments made as described in subsection (e) below shall be valid and shall satisfy the liability of the City upon the Bond to the extent of the amount so paid. (c) No Transfer or Exchange of Registered Ownership. The Bond shall not be transferrable without the consent of the City unless (i) the Bank’s corporate name is changed and the transfer is necessary to reflect such change; or (ii) the transferee is a successor in interest of ORD.A Page 48 of 109 -8- 10120 00003 fa05gn21ry.002 the Bank by means of a corporate merger, an exchange of stock, or a sale of assets. Notwithstanding the foregoing, the Bond may be transferred upon satisfaction of the requirements, if any, set forth in the Commitment and in the Bond. (d) Registration Covenant. The City covenants that, until the Bond has been surrendered and canceled, it will maintain a system for recording the ownership of the Bond that complies with the provisions of Section 149 of the Code. (e) Place and Medium of Payment. Both principal of and interest on the Bond shall be payable in lawful money of the United States of America. Principal and interest on the Bond shall be payable by check, warrant, Automated Clearing House/electronic funds transfer or by other means mutually acceptable to the Registered Owner and the City. Payment of principal of and interest on the Bond will be made by the City directly to the Registered Owner and not through a third party paying agent. Upon final payment of principal and interest of the Bond, the Registered Owner shall surrender the Bond for cancellation at the office of the Bond Registrar in accordance with this Section 4 and Section 13. (f) Additional Provisions. The Bond will not be registered with The Depository Trust Company, New York, New York, or any other securities depository. No official statement, prospectus, offering circular or other offering statement containing material information with respect to the City or the Bond will be provided in connection with the issuance of the Bond, the Bond will be unrated, and the Bond will not be assigned a CUSIP number. Section 5. Form of Bond. The Bond shall be in substantially the following form: UNITED STATES OF AMERICA NO. R-1 $__________ STATE OF WASHINGTON CITY OF AUBURN LIMITED TAX GENERAL OBLIGATION REFUNDING BOND, 2016 ORD.A Page 49 of 109 -9- 10120 00003 fa05gn21ry.002 INTEREST RATE: ____% MATURITY DATE: DECEMBER 1, 2025 REGISTERED OWNER: PRINCIPAL AMOUNT: ________ MILLION AND NO/100 DOLLARS The City of Auburn, Washington, a municipal corporation organized and existing under and by virtue of the laws of the State of Washington (the “City”), hereby acknowledges itself to owe and for value received promises to pay to the Registered Owner identified above, on or before the Maturity Date identified above, the Principal Amount identified above. This bond shall bear interest at the fixed rate stated above (the “Interest Rate”). Interest on this bond shall accrue from its dated date until paid and shall be computed per annum on the principal amount outstanding on a 30/360 basis. Principal of and accrued interest on this bond shall be payable on the dates set forth in the payment schedule attached hereto. Both principal of and interest on this bond shall be payable in lawful money of the United States of America. Principal and interest on this bond shall be payable by check or warrant or by other means mutually acceptable to the Registered Owner and the City. Upon final payment of principal and interest of this bond, the Registered Owner shall surrender this bond for cancellation at the office of the Bond Registrar in accordance with Ordinance No. 6587 of the City (the “Bond Ordinance”). This bond 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 and costs associated with the refunding. Capitalized terms used in this bond have the meanings given such terms in the Bond Ordinance. [The City may prepay this bond without prepayment penalty or fee.] This bond has been designated by the City as a “qualified tax-exempt obligation” within the meaning of Section 265(b) of the Code. The City has in the Bond Ordinance authorized the creation of a fund to be used for the payment of debt service on this bond, designated as the “Bond Redemption Fund” (the “Bond Fund”). The Bond Fund shall be drawn upon for the sole purpose of paying the principal of and interest on this bond. The City hereby irrevocably covenants and agrees with the owner of this bond that it will include in its annual budget and levy taxes annually, within and as a part of the tax levy permitted to the City without a vote of the electorate, upon all the property subject to taxation in amounts sufficient, together with other money legally available therefor, to pay the principal of and interest on this bond as the same shall become due. The full faith, credit and resources of the City are hereby irrevocably pledged for the annual levy and collection of such taxes and the prompt payment of such principal and interest. ORD.A Page 50 of 109 -10- 10120 00003 fa05gn21ry.002 This bond shall not be valid or become obligatory for any purpose or be entitled to any security or benefit under the Bond Ordinance until the Certificate of Authentication hereon shall have been manually signed by or on behalf of the Bond Registrar or its duly designated agent. This bond is issued pursuant to the Constitution and laws of the State of Washington, and duly adopted ordinances of the City. This bond is transferable upon compliance with the conditions set forth in the Bond Ordinance. It is hereby certified that all acts, conditions and things required by the Constitution and statutes of the State of Washington to exist, to have happened, been done and performed precedent to and in the issuance of this bond exist, have happened, been done and performed and that the issuance of this bond does not violate any constitutional, statutory or other limitation upon the amount of bonded indebtedness that the City may incur. IN WITNESS WHEREOF, the City of Auburn, Washington, has caused this bond to be executed by the manual or facsimile signature of the Mayor of the City Council and attested by the manual or facsimile signature of the Clerk, as of this _____ day of ___________, 2016. [SEAL] CITY OF AUBURN, WASHINGTON By /s/ Mayor ATTEST: /s/ City Clerk REGISTRATION CERTIFICATE This bond is registered in the name of the Registered Owner on the books of the City, in the office of the Finance Director of the City (the “Bond Registrar”), as to both principal and interest, as noted in the registration blank below. All payments of principal of and interest on this bond shall be made by the City from the Bond Fund. Date of Registration Name and Address of Registered Owner Signature of Bond Registrar __________ __, 2016 ______________________ Finance Director ORD.A Page 51 of 109 -11- 10120 00003 fa05gn21ry.002 PAYMENT SCHEDULE Principal and interest on this bond shall be payable as set forth in the following schedule: Date Principal Interest Total Payment Section 6. Execution of Bond. The Bond shall be executed on behalf of the City with the manual or facsimile signature of the Mayor, and shall be attested by the manual or facsimile signature of the Clerk. Only such Bond as shall bear thereon a Certificate of Authentication in the form earlier recited, manually executed by the Bond Registrar, shall be valid or obligatory for any purpose or entitled to the benefits of this ordinance. Such Certificate of Authentication shall be conclusive evidence that the Bond so authenticated has been duly executed, authenticated and delivered hereunder and is entitled to the benefits of this ordinance. In case either of the officers who shall have executed the Bond shall cease to be an officer or officers of the City before the Bond so signed shall have been authenticated or delivered by the Bond Registrar, or issued by the City, such Bond may nevertheless be authenticated, delivered and issued and upon such authentication, delivery and issuance, shall be as binding upon the City as though those who signed the same had continued to be such officers of the City. The Bond may also be signed and attested on behalf of the City by such persons who at the date of the actual execution of the Bond, are the proper officers of the City, although at the original date of such Bond any such person shall not have been such officer of the City. Section 7. Application of Bond Proceeds; Plan of Refunding. For the purpose of debt service savings, the City proposes to defease and/or refund each series of the Refunded Bonds as set forth herein. The Finance Director shall designate all or a portion of each series of ORD.A Page 52 of 109 -12- 10120 00003 fa05gn21ry.002 the Refunding Candidates as Refunded Bonds and such designation shall be set forth in the Escrow Agreement. A portion of the proceeds of the Bond shall be deposited with the Escrow Agent pursuant to the Escrow Agreement to be used immediately upon receipt thereof to defease the Refunded Bonds as authorized by the 2005 Bond Ordinance and the 2006A Bond Ordinance, as applicable, and to pay costs of issuance of the Bond. The net proceeds deposited with the Escrow Agent and any interest earnings on any Acquired Obligations will provide for the payment of: (1) interest on each series of Refunded Bonds as such becomes due on and prior to the applicable Call Date; and (2) the redemption price (100 percent of the principal amount) of each series of Refunded Bonds on the applicable Call Date. Such Acquired Obligations shall be purchased at a yield not greater than the yield permitted by the Code and regulations relating to acquired obligations in connection with refunding bond issues. A beginning cash balance, if any, and the Acquired Obligations, if any, shall be deposited irrevocably with the Escrow Agent in an amount sufficient to defease the Refunded Bonds. In order to carry out the purposes of this Section 7, the Finance Director is authorized and directed to execute and deliver to the Escrow Agent, an Escrow Agreement. The City hereby calls the Refunded Bonds for redemption on their respective Call Dates in accordance with the provisions of the bond ordinance authorizing the redemption and retirement of the applicable 2005 Bonds and 2006A Bonds prior to their fixed maturities. ORD.A Page 53 of 109 -13- 10120 00003 fa05gn21ry.002 Said defeasance and call for redemption of the Refunded Bonds shall be irrevocable after the issuance of the Bond and delivery of the proceeds of such Bond and/or Acquired Obligations to the Escrow Agent. The Escrow Agent is hereby authorized and directed to provide for the giving of notices of the defeasance and/or redemption of the Refunded Bonds in accordance with the applicable provisions of the 2005 Bond Ordinance and the 2006A Bond Ordinance. The costs of publication of such notices shall be an expense of the City. The City will take such actions as are found necessary to see that all necessary and proper fees, compensation and expenses of the Escrow Agent for the Refunded Bonds shall be paid when due. Section 8. Tax Covenants. The City will take all actions necessary to assure the exclusion of interest on the Bond from the gross income of the owners of the Bond to the same extent as such interest is permitted to be excluded from gross income under the Code as in effect on the date of issuance of the Bond, including but not limited to the following: (a) Private Activity Bond Limitation. The City will assure that the proceeds of the Bond are not so used as to cause the Bond to satisfy the private business tests of Section 141(b) of the Code or the private loan financing test of Section 141(c) of the Code. (b) Limitations on Disposition of Project. The City will not sell or otherwise transfer or dispose of (i) any personal property components of the projects financed with proceeds of the Refunded Bonds (the “Projects”) other than in the ordinary course of an established government program under Treasury Regulation 1.141-2(d)(4) or (ii) any real property components of the Projects, unless it has received an opinion of Bond Counsel to the effect that such disposition ORD.A Page 54 of 109 -14- 10120 00003 fa05gn21ry.002 will not adversely affect the treatment of interest on the Bond as excludable from gross income for federal income tax purposes. (c) Federal Guarantee Prohibition. The City will not take any action or permit or suffer any action to be taken if the result of such action would be to cause the Bond to be “federally guaranteed” within the meaning of Section 149(b) of the Code. (d) Rebate Requirement. The City will take any and all actions necessary to assure compliance with Section 148(f) of the Code, relating to the rebate of excess investment earnings, if any, to the federal government, to the extent that such section is applicable to the Bond. (e) No Arbitrage. The City will not take, or permit or suffer to be taken by the Escrow Agent or otherwise, any action with respect to the proceeds of the Bond which, if such action had been reasonably expected to have been taken, or had been deliberately and intentionally taken, on the date of issuance of the Bond would have caused the Bond to be an “arbitrage bond” within the meaning of Section 148 of the Code. (f) Registration Covenant. The City will maintain a system for recording the ownership of the Bond that complies with the provisions of Section 149 of the Code until the Bond has been surrendered and canceled. (g) Record Retention. The City will retain its records of all accounting and monitoring it carries out with respect to the Bond for at least three years after the Bond matures or is redeemed (whichever is earlier); however, if the Bond is redeemed and refunded, the City will retain its records of accounting and monitoring at least three years after the earlier of the maturity or redemption of the obligations that refunded the Bond. (h) Compliance with Federal Tax Certificate. The City will comply with the provisions of the Federal Tax Certificate with respect to the Bond, which are incorporated herein ORD.A Page 55 of 109 -15- 10120 00003 fa05gn21ry.002 as if fully set forth herein. The covenants of this Section will survive payment in full or defeasance of the Bond. (i) Bank Qualification. The City hereby designates the Bond for purposes of paragraph (3) of Section 265(b) of the Code and represents that not more than $10,000,000 aggregate principal amount of obligations the interest on which is excludable (under Section 103(a) of the Code) from gross income for federal income tax purposes (excluding (i) private activity bonds, as defined in Section 141 of the Code, except qualified 501(c)(3) bonds as defined in Section 145 of the Code and (ii) current refunding obligations to the extent the amount of the refunding obligation does not exceed the outstanding amount of the refunded obligation), has been or will be issued by the City, including all subordinate entities of the City, during the calendar year 2016. Section 9. Pledge of Funds and Credit; General Obligation. The City hereby authorizes the creation of a fund to be used for the payment of debt service on the Bond, designated as the “Bond Redemption Fund” (the “Bond Fund”). No later than the date each payment of principal of or interest on the Bond becomes due, the City shall transmit sufficient funds, from the Bond Fund or from other legally available sources, to the Bond Registrar for the payment of such principal or interest. Money in the Bond Fund may be invested in legal investments for City funds. The City hereby irrevocably covenants and agrees for as long as the Bond is outstanding and unpaid that each year it will include in its budget and levy an ad valorem tax upon all the property within the City subject to taxation in an amount that will be sufficient, together with other revenues and money of the City legally available for such purposes, to pay the principal of and interest on the Bond when due. ORD.A Page 56 of 109 -16- 10120 00003 fa05gn21ry.002 The City hereby irrevocably pledges that the annual tax provided for herein to be levied for the payment of such principal and interest shall be within and as a part of the tax levy permitted to cities without a vote of the people, and that a sufficient portion of each annual levy to be levied and collected by the City prior to the full payment of the principal of and interest on the Bond will be and is hereby irrevocably set aside, pledged and appropriated for the payment of the principal of and interest on the Bond. The full faith, credit and resources of the City are hereby irrevocably pledged for the annual levy and collection of said taxes and for the prompt payment of the principal of and interest on the Bond when due. Section 10. Right of Prepayment. The City may prepay the Bond in whole or in part on any date as set forth in the Commitment and approved by the Designated Representative pursuant to Section 11. If the Bond is prepaid in full, interest shall cease to accrue on the date such prepayment occurs. Section 11. Issuance of the Bond. The Council has determined that it would be in the best interest of the City to delegate to the Designated Representative for a limited time the authority to request proposals from financial institutions and/or other qualified buyers to purchase the Bond and to approve the final terms of the Bond, as set forth in the Commitment of the successful respondent. The Designated Representative shall solicit proposals to purchase the Bond and shall select the Bank that submits the proposal that is in the best interest of the City. Subject to the terms and conditions set forth in this Section 11, the Designated Representative is hereby authorized (a) to select the Bank, (b) to select the Refunded Bonds, (c) to approve the principal amount, principal payment dates, dated date, denominations, interest payment dates, redemption/prepayment provisions and interest rate or rates for the Bond, (d) to accept the Commitment, and (e) to execute the sale of the Bond to the Bank; provided that (1) ORD.A Page 57 of 109 -17- 10120 00003 fa05gn21ry.002 the principal amount of the Bond does not exceed $4,000,000, (2) the final maturity of the Bond is no later than December 1, 2025, (3) the Bond is sold for a price that results in a minimum net present value debt service savings over the Refunded Bonds (in the aggregate) of 4.00%, and (4) the true interest cost for the Bond does not exceed 3.00%. Following the sale of the Bond, the Designated Representative shall provide a report to Council describing the sale and final terms of the Bond approved pursuant to the authority delegated in this section. The authority granted to the Designated Representative by this Section 11 shall expire on June 1, 2016. If the Bond has not been sold by June 1, 2016, the authorization for the issuance of the Bond shall be rescinded, and the Bond shall not be issued nor its sale approved unless such Bond shall have been re-authorized by ordinance of the Council. The ordinance re-authorizing the issuance and sale of such Bond 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 Commitment or establishing terms and conditions for the authority delegated under this Section 11. Upon the passage and approval of this ordinance, the proper officials of the City including the Designated Representative, are authorized and directed to undertake all action necessary for the prompt execution and delivery of the Bond to the Bank and further to execute all closing certificates, agreements, loan agreement, and documents required to effect the closing and delivery of the Bond in accordance with the terms of the Commitment. Section 12. Ongoing Disclosure; Covenants. (a) Ongoing Disclosure. The Bond is exempt from ongoing disclosure requirements of the Rule. ORD.A Page 58 of 109 -18- 10120 00003 fa05gn21ry.002 (b) Covenants. The City may agree to provide the Bank certain financial or other information and agree to such covenants as determined to be necessary by the Designated Representative and as set forth in the Commitment and approved by the Designated Representative pursuant to Section 11. Section 13. Lost, Stolen or Destroyed Bond. In case the Bond shall be lost, stolen or destroyed while in the Registered Owner’s possession, the Bond Registrar may at the request of the Registered Owner execute and deliver a new Bond of like date, number and tenor to the Registered Owner thereof upon the Registered Owner’s paying the expenses and charges of the City and the Bond Registrar in connection therewith and upon its filing with the City written certification that such Bond was actually lost, stolen or destroyed and of its ownership thereof. In the case the Bond shall be lost, stolen, or destroyed while in the Registered Owner’s possession, the Registered Owner may elect upon final payment of principal and interest of the Bond to surrender a photocopy of the Bond for cancellation at the office of the Bond Registrar together with written certification that such Bond was actually lost, stolen or destroyed and of its ownership thereof. Section 14. Severability; Ratification. If any one or more of the covenants or agreements provided in this ordinance to be performed on the part of the City shall be declared by any court of competent jurisdiction to be contrary to law, then such covenant or covenants, agreement or agreements, shall be null and void and shall be deemed separable from the remaining covenants and agreements of this ordinance and shall in no way affect the validity of the other provisions of this ordinance or of the Bond. All acts taken pursuant to the authority granted in this ordinance but prior to its effective date are hereby ratified and confirmed. ORD.A Page 59 of 109 -19- 10120 00003 fa05gn21ry.002 Section 15. Effective Date of Ordinance. This ordinance will become effective five days from and after its passage, approval and publication. PASSED by the City Council of the City of Auburn, Washington, at a regular meeting of the City Council held on February 16, 2016. FIRST READING: ___________________ SECOND READING: ________________ PASSED: ___________________________ APPROVED: ________________________ CITY OF AUBURN, WASHINGTON Nancy Backus, Mayor ATTEST: Danielle E. Daskam, City Clerk APPROVED AS TO FORM: Pacifica Law Group LLP, Bond Counsel ORD.A Page 60 of 109 10120 00003 fa05gn21ry.002 CERTIFICATE I, the undersigned, City Clerk of the City of Auburn, Washington, DO HEREBY CERTIFY: 1. That the attached is a true and correct copy of Ordinance No. 6587 (the “Ordinance”) of the City, duly passed at a regular meeting of the City Council (the “Council”) of the City held on February 16, 2016. 2. That said meeting was duly convened and held in all respects in accordance with law, and to the extent required by law, due and proper notice of such meeting was given; that a legal quorum was present throughout the meeting and a legally sufficient number of members of the Council voted in the proper manner for the passage of said Ordinance; that all other requirements and proceedings incident to the proper passage of said Ordinance have been fully fulfilled, carried out and otherwise observed; and that I am authorized to execute this certificate. IN WITNESS WHEREOF, I have hereunto set my hand this 16th day of February, 2016. City Clerk ORD.A Page 61 of 109 AGENDA BILL APPROVAL FORM Agenda Subject: Ordinance No. 6588, Second Reading Date: February 10, 2016 Department: Finance Attachments: Ordinance No. 6588 Budget Impact: $0 Administrative Recommendation: City Council adopt Ordinance No. 6588. Background Summary: Ordinance No. 6588 levies a .0209% sales tax credit against the state sales tax for local revitalization financing. SB 5045 authorizing the tax credit was passed by the state legislature during the 2009 regular session. The intent of the legislation was to provide financial assistance to Cities to assist with financing public improvements in an identified revitalization area to promote community and economic development. The City first applied for the use of local revitalization financing on August 11, 2009 and the Department of Revenue approved the City’s application on September 16, 2009, authorizing up to $250,000 per year for the local revitalization program (Promenade capital improvements). In 2010, the City issued $7.24 million in 2010 C/D Bonds for the purpose of funding capital improvements for the Promenade. Annual debt service payments for these bonds continue through the year 2035. Funds from EDA grants, combined with REET2 funds and interest earnings, are used to pay for the annual debt service costs of the local revitalization project. As of the end of 2015, the remaining principal balance is $6.1 million. The tax credit is available to the City for up to 25 years. 2016 will be the seventh year that the City has asked the State for the tax credit. As provided by the state, in order for the City to continue receiving the tax credit, the City must request this each year by Ordinance. Based upon historical taxable retail sales, the above rate of .0209% is estimated to generate $250,000 for local revitalization funding during the State’s fiscal year, July 1, 2016 to June 30, 2017. AUBURN * MORE THAN YOU IMAGINEDORD.B Page 62 of 109 Reviewed by Council Committees: Councilmember:Staff:Coleman Meeting Date:February 16, 2016 Item Number:ORD.B AUBURN * MORE THAN YOU IMAGINEDORD.B Page 63 of 109 ORDINANCE NO. 6 5 8 8 AN ORDINANCE OF THE CITY COUNCIL OF THE CITY OF AUBURN, WASHINGTON, ESTABLISHING THE LOCAL SALES AND USE TAX RATE FOR LOCAL REVITALIZATION FINANCING FOR 2016 WHEREAS, the City of Auburn ("City") enacted Ordinance No. 6301 on April 19, 2010, which established a local sales and use tax as provided for in Section 39.14.510 of the Revised Code of Washington ("RCW"); and WHEREAS, this tax is imposed in order to pay the debt service on Local Revitalization Financing bonds in accordance with Chapter 39.14 RCW; and WHEREAS, Chapter 39.14 RCW provides that the City shall, from time to time, adjust the tax rate so that it is set at the rate reasonably necessary to receive the state contribution over 10 months, in accordance with RGW 82.14.510(3); and WHEREAS, the Local Sales and Use Tax Rate is set at a rate to generate approximately $250,000.00 between July 1, 2016 through June 30, 2017, for Local Revitalization Financing. NOW, THEREFORE, THE CITY COUNCIL OF THE CITY OF AUBURN, WASHINGTON, DO ORDAIN as follows: Section 1. The sales and use tax rate initially established in Section 3.2 of Ordinance No. 6301, and most recently amended by Ordinance No. 6494, is hereby amended to .0209%, effective July 1, 2016. Section 2. Implementation, The Mayor is hereby authorized to implement such administrative procedures as may be necessary to carry out the directions of this legislation. Ordinance No. 6588 January 21, 2016 Page 1 of 1ORD.B Page 64 of 109 Section 3. Severability. The provisions of this ordinance are declared to be separate and severable. The invalidity of any clause, sentence, paragraph, subdivision, section or portion of this ordinance, or the invalidity of the application thereof to any person or circumstance shall not affect the validity of the remainder of this ordinance, or the validity of its application to other persons or circumstances. Section 4. Effective date. This Ordinance shall take effect and be in force five days from and after its passage, approval and publication as provided by law. FIRST READING: SECOND READING: PASSED: APPROVED: NANCY BACKUS, MAYOR ATTEST: Danielle E. Daskam, City Clerk APPRO D A T ORM: Da ' B. Heid, ity Attorne Published: Ordinance No. 6588 January 21, 2016 Page 2 of 2ORD.B Page 65 of 109 AGENDA BILL APPROVAL FORM Agenda Subject: Resolution No. 5198 Date: February 8, 2016 Department: CD & PW Attachments: Resolution No. 5198 Draft Ordinance No. 6586 Ordinance No. 6344 Budget Impact: $0 Administrative Recommendation: City Council adopt Resolution No. 5198. Background Summary: Resolution No. 5198 sets the date of the public hearing for renewal of Franchise Agreement No. 10-23, for New Cingular Wireless PCS, LLC for March 14, 2016 at 4:00 pm in Council Chambers. New Cingular Wireless PCS, LLC has applied for renewal and correction to their existing Franchise Agreement to continue to operate within the City’s rights of way a wireless telecommunications facility adjacent to 2604 Auburn Way North. Per Auburn City Code Chapter 20.06.140 a public hearing shall be held prior to granting or denying renewal of a franchise agreement. Draft Ordinance No. 6586 and Franchise Agreement No. 10-23, Ordinance No. 6344 are attached as back up documentation for Resolution No. 5198. Reviewed by Council Committees: Councilmember:Staff:Snyder Meeting Date:February 16, 2016 Item Number:RES.A AUBURN * MORE THAN YOU IMAGINEDRES.A Page 66 of 109 RESOLUTION NO. 5198 A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF AUBURN, WASHINGTON, SETTING A PUBLIC HEARING TO CONSIDER THE RENEINAL OF FRANCHISE AGREEMENT NO. 10-23 AND AMENDMENT OF ORDINANCE NO. 6344 WITH NEW CINGULAR WIRELESS PCS, LLC WHEREAS, New Cingular Wireless PCS, LLC ("Grantee") has applied to 4he City for renewal and correction to their existing Franchise Agreement No. 10-23 for the right of entry, use, and occupation of certain public rights-of-way within 4he City of Aubum; and WHEREAS, The City has reviewed the Grantee's application materials, and the City Engineer is satisfied that the application is sufficiently complete, so as to warrant holding a public hearing before the City Gouncil to consider the renewal and correction to the franchise agreement, pursuant to ACC 20.06.140 of the Auburn City Code (ACC). NOW, THEREFORE, THE CITY COUNCIL OF THE CITY OF AUBURN, WASHINGTON, HEREBY RESOLVES as follows: Sec4ion 1. That a hearing on the applica4ion by the Grantee for renewal and cbrrection to Franchise Agreement No. 10-23, Ordinance No. 6344 with the City of Auburn is hereby set for 4:00 p.m. on the 14th day of March, 2016, at the City Council Chambers at 25 West Main Street, Auburn, Washington, 98001, with all persons wishing to speak to the application at the public hearing being invited to attend. Section 2. The Mayor is hereby authorized to implement such administrative procedures as may be necessary to carry out the directives of this legislation, including posting notice of such public hearing as required by State law and City Ordinance. Resolution No. 5198 Franchise Agreement No. 10-23 Renewal January 25, 2016 Page 1 of 2 RES.A Page 67 of 109 Section 3. This Resolution shall be in full force in effect upon passage and signatures hereon. DATED and SIGNED this day of 2016. CITY OF AUBURN Nancy Backus Mayor Attest: Danielle E. Daskam, City Clerk Appro as Form: D iel B. Heid, City A orney Resolution No. 5198 Franchise Agreement No. 10-23 Renewal January 25, 2016 Page 2 of 2 RES.A Page 68 of 109 ------------------------------ Draft Ordinance No. 6586 Franchise Agreement No. 10-23, Renewal January 25, 2016 Page 1 of 5 ORDINANCE NO. 6586 AN ORDINANCE OF THE CITY COUNCIL OF THE CITY OF AUBURN, WASHINGTON, AUTHORIZING THE RENEWAL OF FRANCHISE AGREEMENT NO. 10-23 AND AMENDMENT OF ORDINANCE NO. 6344 WITH NEW CINGULAR WIRELESS PCS, LLC WHEREAS, On February 22, 2011, the City Council adopted Ordinance No. 6344, granting a wireless communications franchise to New Cingular Wireless PCS, LLC (“Grantee”); and, WHEREAS, the coordinates for the location of the wireless facilities are inaccurately listed in Exhibit A of the franchise agreement, No. 10-23; and WHEREAS, New Cingular Wireless PCS, LLC wishes to renew Franchise Agreement No.10-23 for an additional five year term and correct the facilities location description; and WHEREAS, following proper notice, the City Council held a public hearing on the Grantee’s request for renewal and correction of the facilities location description of Franchise Agreement No. 10-23, at which time representatives of Grantee and interested citizens were heard in a full public proceeding affording opportunity for comment by any and all persons desiring to be heard; and WHEREAS, based upon the foregoing recital clauses and from information presented at such public hearing and from facts and circumstances developed or discovered through independent study and investigation, the City Council in Compliance with RCW 35.99 now deems it appropriate and in the best RES.A Page 69 of 109 ------------------------------ Draft Ordinance No. 6586 Franchise Agreement No. 10-23, Renewal January 25, 2016 Page 2 of 5 interest of the City and its inhabitants that the renewal and correction of Franchise Agreement No. 10-23 be granted to the Grantee. NOW, THEREFORE, THE CITY COUNCIL OF THE CITY OF AUBURN, WASHINGTON, DO ORDAIN as follows: Section 1. Subject to the conditions set forth in this Ordinance, the City approves Grantee’s application for renewal for one five-year period as provided for in Section 3 B of Ordinance No. 6344, Franchise Agreement No. 10-23, a copy of which is attached hereto and marked as Exhibit A. Such five-year renewal period shall commence on the effective date of this Ordinance. Section 2. Exhibit A of Ordinance No. 6344 is amended and hereby replaced with Exhibit A, attached hereto, and a new Exhibit C-1 is added as an Exhibit to Ordinance No. 6344, which additional Exhibit is also attached hereto. Section 3. All other provisions of Ordinance No. 6344 shall remain unchanged and in full force and effect. Section 4. Implementation. The Mayor is hereby authorized to implement such administrative procedures as may be necessary to carry out the directions of this legislation. Section 5. Severability. The provisions of this ordinance are declared to be separate and severable. The invalidity of any clause, sentence, paragraph, subdivision, section or portion of this ordinance, or the invalidity of the application thereof to any person or circumstance shall not affect the validity of the remainder of this ordinance, or the validity of its application to other persons or circumstances. RES.A Page 70 of 109 ------------------------------ Draft Ordinance No. 6586 Franchise Agreement No. 10-23, Renewal January 25, 2016 Page 3 of 5 Section 6. Effective date. This Ordinance shall take effect and be in force five days from and after its passage, approval and publication as provided by law. FIRST READING: _________________ SECOND READING: ______________ PASSED: ________________________ APPROVED: _____________________ ________________________________ NANCY BACKUS, MAYOR ATTEST: ___________________________ Danielle E. Daskam, City Clerk APPROVED AS TO FORM: __________________________ Daniel B. Heid, City Attorney Published: _________________ RES.A Page 71 of 109 RES.A Page 72 of 109 ------------------------------ Draft Ordinance No. 6586 Franchise Agreement No. 10-23, Renewal January 25, 2016 Page 5 of 5 EXHIBIT “C-1” STATEMENT OF ACCEPTANCE New Cingular Wireless PCS, LLC, for itself, its successors and assigns, hereby accepts and agrees to be bound by all lawful terms, conditions and provisions of the Franchise Agreement, Ordinance No. 6344, attached hereto and incorporated herein by this reference as amended by Ordinance No. 6586. NEW CINGULAR WIRELESS PCS, LLC A Delaware limited liability company By: AT&T Mobility Corporation Its: Manager By: Date: Name: Title: STATE OF _______________) )ss. COUNTY OF _____________ ) On this ____ day of _______________, 20____, before me the undersigned, a Notary Public in and for the State of __________, duly commissioned and sworn, personally appeared, __________________ of _________, the company that executed the within and foregoing instrument, and acknowledged the said instrument to be the free and voluntary act and deed of said company, for the uses and purposes therein mentioned, and on oath stated that he/she is authorized to execute said instrument. IN WITNESS WHEREOF, I have hereunto set my hand and affixed my official seal on the date hereinabove set forth. Signature NOTARY PUBLIC in and for the State of ___________, residing at MY COMMISSION EXPIRES: RES.A Page 73 of 109 RES.A Page 74 of 109 RES.A Page 75 of 109 RES.A Page 76 of 109 RES.A Page 77 of 109 RES.A Page 78 of 109 RES.A Page 79 of 109 RES.A Page 80 of 109 RES.A Page 81 of 109 RES.A Page 82 of 109 RES.A Page 83 of 109 RES.A Page 84 of 109 RES.A Page 85 of 109 RES.A Page 86 of 109 RES.A Page 87 of 109 RES.A Page 88 of 109 RES.A Page 89 of 109 RES.A Page 90 of 109 AGENDA BILL APPROVAL FORM Agenda Subject: Resolution No. 5201 Date: January 12, 2016 Department: Information Services Attachments: Resolution No. 5201 VRFA ILA for GIS services Budget Impact: $0 Administrative Recommendation: City Council adopt Resolution No. 5201. Background Summary: This item was discussed at the February 8, 2016 study session. The Resolution formalizes an Interlocal Agreement between the City of Auburn and Valley Regional Fire Authority for GIS services. Reviewed by Council Committees: Councilmember:Staff:Haugan Meeting Date:February 16, 2016 Item Number:RES.B AUBURN * MORE THAN YOU IMAGINEDRES.B Page 91 of 109 RESOLUTION NO. 5 2 01 A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF AUBURN, WASHINGTON, AUTHORIZING THE MAYOR TO EXECUTE AN INTERLOCAL AGREEMENT BETWEEN THE CITY OF AUBURN AND VALLEY REGIONAL FIRE AUTHORITY FOR GIS SERVICES WHEREAS, RCW 39.34 authorizes public agencies to enter into interlocal agreements; and WHEREAS, Valley Regional Fire Authority (VRFA) has 4he need for professional GIS services; and WHEREAS, the City of Auburn is able and willing to provide those services, at a cost that is acceptable to the City. NOW, THEREFORE, THE CITY COUNCIL OF THE CITY OF AUBURN, KING COUNTY, WASHINGTON, HEREBY RESOLVES as follows: Section 1. The Mayor of the City of Auburn is hereby authorized to execute an Interlocal Agreement between the City of Auburn and Valley Regional Fire Authority (VRFA) for Information Technology Services in substantial conformity with the Agreement attached hereto as Exhibit "A" and incorporated herein by this reference. Section 2. The Mayor is . hereby authorized to implement such administrative procedures as may be necessary to carry out the directives of this legislation. Resolution No. 5201 January 12, 2016 Page 1 of 2 RES.B Page 92 of 109 Section 3. This resolution shall be in full force and effect upon passage and signatures hereon. Dated and Signed this ____ day of 2016. CITY OF AUBURN NANCYBACKUS, MAYOR ATTEST: Danielle E. Daskam, City Clerk APP O ED FORM: aniel B. Heid, City Attorney Resolution No. 5201 January 12, 2016 Page 2 of 2 RES.B Page 93 of 109 INTERLOCAL AGREEMENT Page 1 of 10 CITY OF AUBURN and VALLEY REGIONAL FIRE AUTHORITY INTERLOCAL AGREEMENT FOR GEOGRAPHIC INFORMATION SYSTEMS THIS INTERLOCAL AGREEMENT made and entered into, pursuant to the Interlocal Cooperation Act, Chapter 39.34 of the Revised Code of Washington, on the _____ day of __________________, 2016, by and between the CITY OF AUBURN, a municipal corporation of the State of Washington (hereinafter referred to as the “City”), and the Valley Regional Fire Authority, a municipal corporation of the State of Washington (hereinafter referred to as “VRFA”), W I T N E S S E T H: WHEREAS, VRFA seeks geographic information systems (“GIS”) technology services; and WHEREAS, the City has the requisite skills, resources, and experience necessary to provide such services and is willing and agreeable to provide such services upon the terms and conditions herein contained. NOW THEREFORE in consideration of their mutual covenants, conditions and promises, the parties hereto do hereby agree as follows: 1. SCOPE OF SERVICES The City agrees to perform for VRFA, in a competent and professional manner the tasks specific to GIS support of the VRFA described on Exhibit A which is attached hereto and by this reference made a part of this Agreement. The tasks described on Exhibit A shall be individually referred to as a “task,” and collectively referred to as the “services.” The City shall perform the services as an independent contractor and shall not be deemed, by virtue of this Agreement and the performance thereof, to have entered into any partnership, joint venture, employment or other relationship with VRFA. The City shall perform the services described in Exhibit A which is attached hereto and by this reference made a part of this Agreement. 2. AMENDMENT REQUIRED FOR ADDITIONAL SERVICES In the event additional GIS services are required by VRFA or reduction in services are necessary beyond those specified in Exhibit A and the compensation listed in Exhibit B of this agreement, and further provided that the City has the time and resources to provide such additional services and is willing to provide such services, a contract amendment shall be set forth in writing and shall be executed by the respective parties prior to the City’s performance of the additional GIS services, except as may be provided to the contrary in Section 3 of this Agreement. Upon proper completion and execution of an Amendment for additional services, such Amendment shall be incorporated into this Agreement and shall have the same force and effect as if the terms of such Amendment were a part of this Agreement as originally executed. The performance of services pursuant to an Amendment shall be subject to the terms and conditions of this Agreement except where the Amendment provides to the contrary, in RES.B Page 94 of 109 INTERLOCAL AGREEMENT Page 2 of 10 which case the terms and conditions of any such Amendment shall control. In all other respects, any Amendment shall supplement and be construed in accordance with the terms and conditions of this Agreement. 3. PERFORMANCE OF ADDITIONAL SERVICES PRIOR TO EXECUTION OF AN AMENDMENT The parties hereby agree that situations may arise in which GIS services other than those described on Exhibit A are desired by VRFA and the time period for the completion of such services makes the execution of Amendment impractical prior to the commencement of the City’s performance of the requested services. The City hereby agrees that it shall perform such services upon the request of an authorized representative of VRFA at a rate of compensation to be mutually negotiated in connection therewith. Any such additional GIS services shall be memorialized in a written amendment in accordance with Section 2 of this Agreement. The invoice procedure for any such additional services shall be as described in Section 6 of this Agreement. 4. VRFA’S RESPONSIBILITIES VRFA shall do the following in a timely manner so as not to delay the services of the City: a. Designate in writing a person to act as VRFA’s representative with respect to the services described in Exhibit A. VRFA’s designee shall have complete authority to transmit instructions, receive information, interpret and define VRFA’s policies and decisions with respect to the services, except in the event of an emergency as described in Exhibit A. b. Furnish the City with all information, criteria, objectives, schedules and standards for the services provided for herein. c. Arrange for access to the property or facilities as required for the City to perform the services provided for herein. d. Examine and evaluate all studies, reports, memoranda, plans, sketches, and other documents prepared by the City and render decisions regarding such documents in a timely manner to prevent delay of the services including passwords, facility access and data systems to which VRFA is requesting support. e. Provide secure access to all documents, data and systems that the City needs to perform services requested. 5. ACCEPTABLE STANDARDS The City shall be responsible to provide, in connection with the services contemplated in this Agreement, work products and services of a quality and professional standard acceptable to VRFA. RES.B Page 95 of 109 INTERLOCAL AGREEMENT Page 3 of 10 6. COMPENSATION Compensation for the City’s performance of the services provided for herein are attached as Exhibit B. The Annual fees shall be increased January 1, 2017, and each January 1 thereafter, by an amount equal to 1% or the most recent Seattle-Tacoma- Bremerton Consumer Price Index - U whichever is greater for the term of this Agreement. The City shall submit to VRFA a monthly invoice and VRFA shall process the invoice or statement in the next billing/claim cycle following receipt of the invoice or statement, and shall remit payment to the City thereafter in the normal course, subject to any conditions or provisions in this Agreement or Amendment. 7. TIME FOR PERFORMANCE AND TERM OF AGREEMENT The City shall perform the services provided for herein in accordance with the direction and scheduling provided in Exhibit A, unless otherwise agreed to in writing by the parties. The initial term of this agreement shall be twelve (12) months and may be extended thereafter by written agreement of the Parties 60 days prior to term end. Either party may cancel this Agreement upon sixty (60) days written notice to the other party. 8. OWNERSHIP AND USE OF DOCUMENTS All documents, reports, memoranda, diagrams, sketches, plans, data, design calculations, working drawings and any other materials created or otherwise prepared by the City as part of its performance of this Agreement (the “Work Products”) shall be owned by and become the property of the City, and may be used by VRFA for any purpose beneficial to VRFA. Public records requests shall be the responsibility of VRFA; however the City may assist at VRFA’s request at hourly rates provided under Exhibit B for onsite support. 9. RECORDS INSPECTION AND AUDIT All compensation payments shall be subject to the adjustments for any amounts found upon audit or otherwise to have been improperly invoiced, and all records and books of accounts pertaining to any work performed under this Agreement shall be subject to inspection and audit by VRFA for a period of up to three (3) years from the final payment for work performed under this Agreement. 10. CONTINUATION OF PERFORMANCE In the event that any dispute or conflict arises between the parties while this Contract is in effect, the City agrees that, notwithstanding such dispute or conflict, the City shall continue to make a good faith effort to cooperate and continue work toward successful completion of assigned duties and responsibilities. Provided, that if the VRFA fails to pay the City for the services, the City can cease providing such services until payment is made. RES.B Page 96 of 109 INTERLOCAL AGREEMENT Page 4 of 10 11. ADMINISTRATION OF AGREEMENT This Agreement shall be administered by Ashley Riggs, Innovation & Technology Operations Manager or designee on behalf of the City, and by Eric Robertson, VRFA Administrator or designee on behalf of VRFA. Any written notices required by the terms of this Agreement shall be served on or mailed to the following addresses: CITY OF AUBURN Innovation & Technology Ashley Riggs 25 W Main St Auburn, WA 98001-4998 Phone: 253-288-3149 Fax: 253-804-3116 E-mail: ariggs@auburnwa.gov VALLEY REGIONAL FIRE AUTHORITY Administration Eric E. Robertson 1101 D Street NE Auburn, WA 98002 Office: 253-288-5801 Fax: 253-288-5900 E-mail: eric.robertson@vrfa.org 12. NOTICES All notices or communications permitted or required to be given under this Agreement shall be in writing and shall be deemed to have been duly given if delivered in person or deposited in the United States mail, postage prepaid, for mailing by certified mail, return receipt requested, and addressed, if to a party of this Agreement, to the address for the party set forth above. Either party may change his, her or its address by giving notice in writing, stating his, her or its new address, to the other party, pursuant to the procedure set forth above. 13. INSURANCE VRFA shall maintain in full force throughout the duration of this Agreement comprehensive general liability insurance with a minimum coverage of $1,000,000.00 per occurrence/aggregate for personal injury and property damage. This requirement shall be deemed satisfied by evidence of VRFA's membership in a municipal self- insurance pool, including evidence of limits of coverage’s, exclusions and limits of liability satisfactory to the City. The City shall maintain in full force throughout the duration of this Agreement comprehensive general liability insurance with a minimum coverage of $1,000,000.00 per occurrence/aggregate for personal injury and property damage. This requirement shall be deemed satisfied by evidence of the City's membership in a municipal self- insurance pool, including evidence of limits of coverage’s, exclusions and limits of liability satisfactory to VRFA. 14. INDEMNIFICATION a. VRFA shall indemnify and hold the City and its agents, employees, and/or officers, harmless from and shall process and defend at its own expense any and RES.B Page 97 of 109 INTERLOCAL AGREEMENT Page 5 of 10 all claims, demands, suits, at law or equity, actions, penalties, losses, damages, or costs, of whatsoever kind or nature, brought against the City arising out of, in connection with, or incident to the execution of this Agreement and/or VRFA’s performance or failure to perform any aspect of this Agreement; provided, however, that if such claims are caused by or result from the concurrent negligence of the City, its agents, employees, and/or officers, this indemnity provision shall be valid and enforceable only to the extent of the negligence of VRFA; and provided further, that nothing herein shall require VRFA to hold harmless or defend the City, its agents, employees and/or officers from any claims arising from the sole negligence of the City, its agents, employees, and/or officers. No liability shall attach to the City by reason of entering into this Agreement except as expressly provided herein. b. The City shall indemnify and hold VRFA and its agents, employees, and/or officers, harmless from and shall process and defend at its own expense any and all claims, demands, suits, at law or equity, actions, penalties, losses, damages, or costs, of whatsoever kind or nature, brought against VRFA arising out of, in connection with, or incident to the execution of this Agreement and/or the City’s performance or failure to perform any aspect of this Agreement; provided, however, that if such claims are caused by or result from the concurrent negligence of VRFA, its agents, employees, and/or officers, this indemnity provision shall be valid and enforceable only to the extent of the negligence of the City; and provided further, that nothing herein shall require the City to hold harmless or defend VRFA, its agents, employees and/or officers from any claims arising from the sole negligence of VRFA, its agents, employees, and/or officers. No liability shall attach to VRFA by reason of entering into this Agreement except as expressly provided herein. 15. WAIVER OF SUBROGATION VRFA and the City hereby mutually release each other from liability and waive all right of recovery against each other for any loss caused by fire or other perils which can be insured against under fire insurance contracts including any extended coverage endorsements thereto which are customarily available from time to time in the State of Washington, provided, that this paragraph shall be inapplicable to the extent that it would have the effect of invalidating any insurance coverage of VRFA or the City. 16. COMPLIANCE WITH REGULATIONS AND LAWS The parties shall comply with all applicable rules and regulations pertaining to them in connection with the matters covered herein. 17. ASSIGNMENT The parties shall not assign this Agreement or any interest, obligation or duty therein without the express written consent of the other party. 18. ATTORNEYS’ FEES If either party shall be required to bring any action to enforce any provision of this Agreement, or shall be required to defend any action brought by the other party with RES.B Page 98 of 109 INTERLOCAL AGREEMENT Page 6 of 10 respect to this Agreement, and in the further event that one party shall substantially prevail in such action, the losing party shall, in addition to all other payments required therein, pay all of the prevailing party’s reasonable costs in connection with such action, including such sums as the court or courts may adjudge reasonable as attorney’s fees in the trial court and in any appellate courts. 19. NONDISCRIMINATION Each of the parties, for itself, its heirs, personal representatives, successors in interest, and assigns, as a part of the consideration hereof, does hereby covenant and agree that it will comply with pertinent statutes, Executive Orders and such rules as are promulgated to assure that no person shall, on the grounds of race, creed, color, national origin, sex, sexual orientation, age, or the presence of any sensory, mental or physical handicap be discriminated against or receive discriminatory treatment by reason thereof. 20. MISCELLANEOUS a. All of the covenants, conditions and agreements in this Agreement shall extend to and bind the legal successors and assigns of the parties hereto. b. This Agreement shall be deemed to be made and construed in accordance with the laws of the State of Washington. Jurisdiction and venue for any action arising out of this Agreement shall be in King County, Washington. c. The captions in this Agreement are for convenience only and do not in any way limit or amplify the provisions of this Agreement. d. Unless otherwise specifically provided herein, no separate legal entity is created hereby, as each of the parties is contracting in its capacity as a municipal corporation of the State of Washington. The identity of the parties hereto is as set forth hereinabove. e. The performances of the duties of the parties provided hereby shall be done in accordance with standard operating procedures and customary practices of the parties. Semi-annual operational review and service meetings shall be held with representatives from both cities to review and discuss service and support delivery. f. No provision of this Agreement shall relieve either party of its public agency obligations and or responsibilities imposed by law. g. If any term or provision of this Agreement or the application thereof to any person or circumstance shall, to any extent, be held to be invalid or unenforceable by a final decision of any court having jurisdiction on the matter, the remainder of this Agreement or the application of such term or provision to persons or circumstances other than those as to which it is held invalid or unenforceable shall not be affected thereby and shall continue in full force and effect, unless such court determines that such invalidity or unenforceability materially interferes with or defeats the purposes hereof, at which time either party shall have the right to terminate the Agreement. RES.B Page 99 of 109 INTERLOCAL AGREEMENT Page 7 of 10 h. This Agreement constitutes the entire agreement between the parties. There are no terms, obligations, covenants or conditions other than those contained herein. No modifications or amendments of this Agreement shall be valid or effective unless evidenced by an agreement in writing signed by both parties. i. Copies of this Agreement shall be listed by the parties on their websites as provided for in RCW 39.34.040. IN WITNESS WHEREOF the parties hereto have executed this Agreement as of the day and year first above written. CITY OF AUBURN ___________________________________ Nancy Backus Auburn Mayor VRFA ___________________________________ Eric E. Robertson VRFA Administrator Attest: ___________________________________ Danielle Daskam, Auburn City Clerk Attest: ___________________________________ Louise M. Bartol Clerk of the Board Approved as to form: ___________________________________ Daniel B. Heid Auburn City Attorney Approved as to form: ___________________________________ Joseph F. Quinn Counsel for VRFA RES.B Page 100 of 109 INTERLOCAL AGREEMENT Page 8 of 10 EXHIBIT A SCOPE OF SERVICES The following data sets, referred to as “Public Safety Data”, are managed and maintained by the City of Auburn GIS. These are the core data sets available to VRFA in any GIS service outlined in Exhibit A. The “Public Safety Data” also includes the data sets required by Valley Communications for the CAD map. 1. Address Points: Address points and/or street centerline 2. Fire Service Reporting and Response Districts: boundaries for response areas 3. Gates and Barriers: access points that are blocked 4. Hydrology: lakes, rivers, streams and waterways 5. Mileposts: points indicating distance to a certain location 6. Police Patrol Districts: larger reporting areas within the City 7. Police Reporting Districts: smaller reporting areas within the districts 8. Political Boundaries: city and county boundaries. Other local government boundaries including water purveyors, fire districts, etc. 9. Railroads: BNSF and Union Pacific 10. Service Area Buffers 11. Streets: street centerlines broken by intersections including street attributes like speed limit, number of lanes, dead-ends, etc.P 12. Valley Communication Service Areas: boundary of entire VCC service area 13. Water Hydrants: points of locations, type and flow ratings In addition, the below data sets have been identified as critical by VRFA as they will be used in the establishment and evaluation of both current and future performance. These data sets will also be available to VRFA in the same manner that the Public Safety Data is. 1. Topography/Ornithology: elevation and overhead view data 2. Zoning: boundaries indicating City zoning and land use data. 3. Occupancy and Permit: building related data from the City’s permit system 4. Hazard and Critical Areas: landslide, earthquake, lahar, flood, wetland, etc. 5. Fire Demand/Management Zones: boundaries designated by VRFA for response management 6. Required Fire Flow: specific buildings that have special response needs 7. Bridges: non-pedestrian and pedestrian bridges within the City All services provided are based off of the data sets outlined above. · VRFA response map development · VRFA map printing · Annual reprints of all templated maps · Map exports (i.e. PDF and image) · Data exports (i.e. Esri shapefiles and Esri Geodatabase) · Access to Auburn GIS mobile devices for field data collection · Access to web-based map services for data consumption RES.B Page 101 of 109 INTERLOCAL AGREEMENT Page 9 of 10 · GIS liaison between VRFA and VCC on CAD map data · Assistance/support with GIS related fire accreditation data · Assistance/support with GIS related programs · Standard, dedicated eGIS site for VRFA (requires signature of completion by both parties) · Read-only access to all non-public safety data that GIS stores or has access to Note: Data will be accessed by VRFA the same way VRFA connects to the City of Auburn over dedicated fiber for access to CRW. Services not included which may incur additional charges: · License(s) to Auburn’s Esri software · GIS related training beyond the initial stand up of eGIS site · Customizations and development of non-standard features for dedicated eGIS site · Data collection · Data cleanup on non-Public Safety Data · Initial cost or maintenance cost of data subscriptions · Initial cost or maintenance cost of VRFA software · Data analysis on special projects Requesting support: All requests for service should be emailed to helpdesk@auburnwa.gov. Requests will automatically be forwarded to the City GIS staff members for resolution. Service levels: For requests e-mailed Monday through Friday from 8:00 a.m. to 5:00 p.m. (“regular business hours”), we will use best efforts to respond within 60 minutes. During high call volumes, we will assist you as soon as possible. Staff will not respond to request made outside regular business hours. Billing: All services will be billed monthly according to Exhibit B. Services that are billed on an hourly basis will include a brief description of the service and hours provided. Monthly charges for service are based on support items listed above. In the event annual support and services exceed the scope of this agreement, VRFA agrees to negotiate these additional services which may include mutually agreed adjustments to monthly service charges. RES.B Page 102 of 109 INTERLOCAL AGREEMENT Page 10 of 10 EXHIBIT B COST OF SERVICES Support Function Operating Hours Billing rate Monthly cost Services outlined in Exhibit A M - F, 8 a.m. - 5 p.m. excluding holidays $2,024.00 / month $2,024.00 One-time project fee: M - F, 8 a.m. - 5 p.m. excluding holidays $100.00 / hour N/A RES.B Page 103 of 109 AGENDA BILL APPROVAL FORM Agenda Subject: Resolution No. 5209 Date: February 8, 2016 Department: CD & PW Attachments: Resolution No. 5209 Amendment No. 3 Budget Impact: $0 Administrative Recommendation: City Council adopt Resolution No. 5209. Background Summary: Resolution No. 5209 Authorizes the Mayor to execute a 3rd Amendment to the Transit Service Direct Financial Partnership Agreement between the City of Auburn, King County and the Pierce County Transit Benefit Authority (Pierce Transit) to extend the operation of the Pierce Transit Route 497 through February 2020. Route 497 connects Lakeland to downtown Auburn. The Resolution also authorizes the Mayor to implement such administrative procedures as may be necessary to carry out the directives of this legislation. Reviewed by Council Committees: Councilmember:Staff:Snyder Meeting Date:February 16, 2016 Item Number:RES.C AUBURN * MORE THAN YOU IMAGINEDRES.C Page 104 of 109 RESOLUTION NO. 5 2 0 9 A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF AUBURN, WASHINGTON, AUTHORIZING THE MAYOR TO EXECUTE A THIRD AMENDMENT TO THE TRANSIT SERVICE DIRECT FINANCIAL PARTNERSHIP AGREEMENT BETWEEN THE CITY OF AUBURN, KING COUNTY AND PIERCE COUNTY PUBLIC TRANSIT BENEFIT AUTHORITY PIERCE TRANSIT) WHEREAS, on December 22, 2008, the City of Auburn, King County, and the Pierce County Public Transit Benefit Authority (Pierce Transit) entered into a Transit Service Direct Financial Partnership Agreement (the "AgreemenY'); and WHEREAS, Section 4.1 of the Agreement provides that each service specified in Attachment A to the Agreement will expire five (5) years after the start o.f service, unless extended pursuant to the terms of the Agreement; and WHEREAS, the transit service enhancements provided for in Part I of Attachment A of the Agreement (i.e., Lakeland Hilis-Auburn Sounder Station route) were implemented on or around February 9, 2010; and WHEREAS, the parties have twice previously amended the Agreement, including a December 2014, amendment whereby the Parties extended the Agreement to provide the enhanced transit service described in Part I of Attachment A until March 12, 2016, and the Parties agreed to evaluate whether or not to extend the Agreement again consistent with the provisions of Section 4.1; and WHEREAS, the Parties now desire to extend the Agreement to provide the enhanced transit service described in Part I of Attachment A of the Agreement for an additional five-year period. Resolution No. 5209 February 10, 2106 Page 1 of 2RES.C Page 105 of 109 NOW, THEREFORE, THE CITY COUNCIL OF THE CITY OF AUBURN, WASHINGTON, HEREBY RESOLVES as follows: Section 1. That the Mayor is hereby authorized to execute an Amendment No. 3 to the Transit Service Direct Financial Partnership Agreement between the City of Auburn, King County and Pierce Transit, which amendment shall be in substantial conformity with the amendment attached hereto as Exhibit Section 2. That the Mayor is authorized to implement such administrative procedures as may be necessa_ry to carry out the directives of this legislation. Section 3. That this Resolution shall take effect and be in full force upon passage and signatures hereon. Dated and Signed 4his day of 2016. CITY OF AUBURN NANCY BACKUS, MAYOR ATTEST: Danielle E. Daskam, City Clerk AP E FO Daniel B. Heid, City Attorney Resolution No 5209 February 10, 2106 Page 2 of 2RES.C Page 106 of 109 _________________________________________________________________________ AMENDMENT NO. 3 to the Transit Service Direct Financial Partnership Agreement between King County, City of Auburn and Pierce Transit Page 1 of 3 AMENDMENT No. 3 to the TRANSIT SERVICE DIRECT FINANCIAL PARTNERSHIP AGREEMENT between KING COUNTY and THE CITY OF AUBURN, WASHINGTON and PIERCE TRANSIT This Amendment No. 3 to the Transit Service Direct Financial Partnership Agreement ("Amendment No. 3" or the " Third Amendment") is made by and between King County, a home rule charter county of the State of Washington, by and through its Department of Transportation, Metro Transit Division (hereinafter the “County” or “Metro Transit”) and the City of Auburn (the “City”) and the Pierce County Public Transportation Benefit Authority (“Pierce Transit”), both Washington municipal corporations (referred to collectively as “Service Partner,” whether one entity or multiple entities), all of which entities may be referred to hereinafter separately as “Party” or together as “Parties.” WHEREAS, on December 22, 2008 the Parties entered into a Transit Service Direct Financial Partnership Agreement (the “Agreement”); and WHEREAS, Section 4.1 of the Agreement provides that each service specified in Attachment A to the Agreement will expire five (5) years after the start of service , unless extended pursuant to the terms of the Agreement; and WHEREAS, Section 4.1 of the Agreement further provides that if, after five (5) years the enhanced transit service described in Section 1 of Attachment A to the Agreement is deemed viable by the County pursuant to the performance indicators set forth in Section 2.2 of the Agreement and the additional performance benchmarks specified in Attachment A of the Agreement, and the Parties desire to have Pierce Transit continue to provide the enhanced transit service beyond the initial period, the Agreement may be extended by the Parties; and WHEREAS, the transit service enhancements provided for in Part I of Attachment A in the Agreement were implemented on or about February 9, 2010; and WHEREAS, in December 2014 the Parties extended the Agreement to provide the enhanced transit service described in Part I of Attachment A (i.e., Lakeland Hills-Auburn Sounder Station route) until March 12, 2016, during which the Parties agreed to evaluate whether or not to extend the Agreement again consistent with the provisions of Section 4.1 of the Agreement; and WHEREAS, Section 8 of the Agreement provides that the Agreement may be amended or modified by written agreement of the Parties, and further provides that such amendments and RES.C Page 107 of 109 _________________________________________________________________________ AMENDMENT NO. 3 to the Transit Service Direct Financial Partnership Agreement between King County, City of Auburn and Pierce Transit Page 2 of 3 modifications may be made for the County by Metro’s General Manager when such amendments are consistent with the intent and purpose of the Agreement; NOW, THEREFORE, in consideration of the terms, conditions and mutual covenants set forth herein, the Parties agree to amend the Agreement as follows: 1. Extension of Term of Agreement As provided for in Section 4.1, the enhanced transit service described in Part I of Attachment A (Lakeland Hills Service) in the Agreement is extended until February 9, 2020. 2. Lakeland Hills Service Cost Operating Cost: The operating cost for the Lakeland Hills service (Rt. 497) beginning in 2016 will be based on Pierce Transit’s hourly rate of $99.78 . The Parties agree that the operating hourly rate may be adjusted each year to reflect changes to Pierce Transit’s service operation costs, however it is agreed that the operating hourly rate for this Agreement shall not increase by more than three percent (3%) each year. Capital Cost: In addition to the operating costs, the Parties agree to pay for Pierce Transit’s capital costs associated with the Lakeland Hills service. The total capital cost for this service is $71,155 per year and is fixed for the term of this extension period. Monetary Contributions: The Parties agree that beginning January 1, 2016 and through the term of this extension, the costs for providing seven weekday AM northbound and seven weekday PM southbound trips on the Lakeland Hills service (Route 497) will be divided equally between the three parties, King County, City of Auburn and Pierce Transit. The total Service costs for 2016 are estimated below. The Parties will each be responsible for one-third (1/3) of the total costs. 2016 Operating Cost ($99.78/hr x 3,811 annual hrs.) Capital Cost TOTAL COST AUBURN $ 126,754 $ 23,718 $ 150,472 KING COUNTY $ 126,754 $ 23,718 $ 150,472 PIERCE TRANSIT $ 126,754 $ 23,718 $ 150,472 ANNUAL TOTAL: $ 380, 261 $ 71,155 $ 451,416 RES.C Page 108 of 109 _________________________________________________________________________ AMENDMENT NO. 3 to the Transit Service Direct Financial Partnership Agreement between King County, City of Auburn and Pierce Transit Page 3 of 3 Additionally, Pierce Transit intends to provide an eighth weekday AM northbound and an eighth weekday PM southbound trip on Route 497. These trips will be funded separately by Pierce Transit and are not included as part of this Amendment No. 3.to the Agreement. 3. No Other Modifications. Except as specifically provided for in this Amendment No. 3, all other provisions of the Agreement shall remain unchanged and in full force and effect. 4. Effective Date. This Amendment No. 3 shall be effective upon execution by the Parties. IN WITNESS WHEREOF, the Parties hereto have caused their duly authorized representatives to execute this Amendment No. 3 to the Agreement as of the date set forth below their signatures. KING COUNTY CITY OF AUBURN By: ___________________________________ By: ____________________________ Kevin Desmond Nancy Backus General Manager, Metro Transit Division Mayor Department of Transportation City of Auburn Date:__________________________________ Date: ___________________________ PIERCE TRANSIT By: ____________________________________ Sue Dreier Chief Executive Officer Pierce Transit Date: __________________________________ RES.C Page 109 of 109