HomeMy WebLinkAbout2015-033 Limited Tax General Obligation Bond to Finance Soccer Complex CITY OF YAKIMA, WASHINGTON
ORDINANCE NO. 2015 -033
AN ORDINANCE OF THE CITY COUNCIL OF THE CITY OF
YAKIMA, WASHINGTON, AUTHORIZING THE ISSUANCE
AND SALE OF A LIMITED TAX GENERAL OBLIGATION
BOND OF THE CITY IN THE PRINCIPAL AMOUNT OF NOT
TO EXCEED $5,000,000 TO FINANCE COSTS RELATED TO
ACQUIRING, DESIGNING, CONSTRUCTING AND
IMPROVING A SOCCER/MULTI -USE SPORTS CAMPUS
AND OTHER PARK PROJECTS IN THE CITY; PROVIDING
THE FORM OF THE BOND; AND AUTHORIZING THE SALE
OF THE BOND TO CASHMERE VALLEY BANK.
Passed November 17, 2015
PREPARED BY:
PACIFICA LAW GROUP LLP
Seattle, Washington
CITY OF YAKIMA
ORDINANCE NO. 2015 -033
TABLE OF CONTENTS*
Page
Section 1. Definitions and Interpretation of Terms 2
Section 2. Authorization of the Project 5
Section 3. Authorization of the Bond 5
Section 4. Registration, Exchange and Payments 6
Section 5. Form of Bond 7
Section 6. Execution of Bond 9
Section 7. Application of Bond Proceeds 10
Section 8. Pledge of Funds and Credit; General Obligation 10
Section 9. Right of Prepayment 11
Section 10. Sale of the Bond 11
Section 11. Ongoing Disclosure; Covenants 12
Section 12. Lost, Stolen or Destroyed Bond 12
Section 13. Severability; Ratification 12
Section 14. Effective Date of Ordinance 13
Exhibit A: Proposal
* This Table of Contents is provided for convenience only and is not a part of this ordinance.
CITY OF YAKIMA, WASHINGTON
ORDINANCE NO. 2015 -033
AN ORDINANCE OF THE CITY COUNCIL OF THE CITY OF
YAKIMA, WASHINGTON, AUTHORIZING THE ISSUANCE
AND SALE OF A LIMITED TAX GENERAL OBLIGATION
BOND OF THE CITY IN THE PRINCIPAL AMOUNT OF NOT
TO EXCEED $5,000,000 TO FINANCE COSTS RELATED TO
ACQUIRING, DESIGNING, CONSTRUCTING AND
IMPROVING A SOCCER/MULTI -USE SPORTS CAMPUS
AND OTHER PARK PROJECTS IN THE CITY; PROVIDING
THE FORM OF THE BOND; AND AUTHORIZING THE SALE
OF THE BOND TO CASHMERE VALLEY BANK.
WHEREAS, the City of Yakima, Washington (the "City "), has entered into an agreement
(the "Agreement ") with Sozo Sports of Central Washington, a non - profit corporation ( "Sozo "),
for the development, management, and operation of a premier soccer /multi -sports campus and
indoor sports facility to serve the citizens of the City and the surrounding communities
(the "Sports Complex "); and
WHEREAS, the proposed Sports Complex will provide approximately 17 outdoor fields
and an indoor soccer /sports facility, and will also provide passive recreational opportunities when
the sports fields are not in use; and
WHEREAS, the Sports Complex will also provide the City's youth and adults with
soccer and recreational opportunities while generating economic opportunity to the City and
surrounding areas; and
WHEREAS, pursuant to the Agreement, the City has agreed to acquire, own, develop,
construct and improve a portion of the outdoor soccer /sports fields and related improvements to
be used as part of the Sports Complex, which will be maintained and operated by Sozo; and
WHEREAS, the City now desires to issue a limited tax general obligation bond to pay a
portion of its costs related to the Sports Complex and other park and recreation capital projects in
the City (the "Project "); and
WHEREAS, the City has received an offer from Cashmere Valley Bank, Cashmere,
Washington (the "Bank ") set forth in Exhibit A attached hereto (the "Proposal "), to purchase a
limited tax general obligation bond of the City in the principal amount of not to exceed
$5,000,000 (the "Bond ") for the purpose of financing the Project; and
WHEREAS, it is deemed necessary and advisable that the City accept the Bank's offer
and issue the Bond as set forth herein;
NOW, THEREFORE, THE CITY COUNCIL OF THE CITY OF YAKIMA,
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:
Bank means Cashmere Valley Bank, Cashmere, Washington.
Bond means the Limited Tax General Obligation Bond, 2015 (Taxable) authorized to be
issued by the City pursuant to this ordinance.
Bond Counsel means Pacifica Law Group LLP, Seattle, Washington.
Bond Fund means the "Bond Redemption Fund" authorized to be created pursuant to
Section 8 of this ordinance.
Bond Register means the registration records for the Bond maintained by the Bond
Registrar.
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Bond Registrar means the Director of Finance and Budget 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.
City means the City of Yakima, 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.
City Manager means the City Manager, or the successor of such office.
Director of Finance and Budget means the Director of Finance and Budget of the City,
or the successor of such office.
Interest Rate means a rate equal to the Interest Rate Swap, plus 1.75 %. The Interest Rate
shall reset each Reset Date, and shall remain in effect until but not including the next Reset Date.
Interest Rate Swap means the most recent monthly average interest rate swap for a five -
year term, as published by the Federal Reserve's Board of Governor's H.15 Statistical Release.
Maturity Date means December 1, 2035.
Project means the project described in Section 2 of this ordinance.
Project Fund means the "Project Fund" authorized to be created pursuant to Section 7 of
this ordinance.
Proposal means the proposal letter submitted by the Bank substantially in the form
attached hereto as Exhibit A.
Sports Complex means the soccer /multi -sports campus and indoor sports facility located
in the City.
Registered Owner means the person in whose name the Bond is registered on the Bond
Register.
Reset Date means December 1, 2020, December 1, 2025, and December 1, 2030.
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.
(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.
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Section 2. Authorization of the Project. The Bond is being issued to finance costs
related to acquiring, developing, constructing, and improving a portion of the outdoor
soccer /sports fields and related improvements to be used as part of the Sports Complex, and
other park and recreation capital projects in the City (the "Project ").
Section 3. Authorization of the Bond. For the purpose of financing costs of the
Project and paying costs of issuance for the Bond, the City hereby authorizes the issuance and
sale of its limited tax general obligation bond in the principal amount of not to exceed
$5,000,000. The bond shall be designated the "City of Yakima, Washington, Limited Tax
General Obligation Bond, 2015 (Taxable)," or other such designation as set forth in the Bond and
approved by the Director of Finance and Budget.
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 Maturity Date. The
Bond shall bear interest from its dated date or the most recent date to which interest has been
paid at the Interest Rate. The Interest Rate shall be adjusted on each Reset Date, and shall remain
in effect until but not including the next Reset Date. Interest on the principal amount of the Bond
shall be calculated per annum on a 30/360 basis. Principal of and interest on the Bond shall be
payable in approximately equal semiannual installments of $200,000 due December 1 and
June 1, beginning June 1, 2016, to and including the Maturity Date, pursuant to the payment
schedule provided by the Bank after each Reset Date. The final payment of principal and interest
on the Bond, whether at the Maturity Date or earlier prepayment, shall be in an amount equal to
the remaining principal and interest due on the Bond.
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Section 4. Registration, Exchange and Payments.
(a) Registrar /Bond Registrar. The Director of Finance and Budget 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
the Bank by means of a corporate merger, an exchange of stock, or a sale of assets.
(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, ACH transfer or by other means mutually acceptable to the
Bank and the City. 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
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with this Section 4 and Section 12.
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 YAKIMA
LIMITED TAX GENERAL OBLIGATION BOND, 2015 (TAXABLE)
INTEREST RATE: VARIABLE, AS DESCRIBED BELOW
MATURITY DATE: DECEMBER 1, 2035
REGISTERED OWNER: CASHMERE VALLEY BANK
PRINCIPAL AMOUNT: MILLION AND NO /100 DOLLARS
The City of Yakima, 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 a rate equal to the Interest Rate Swap, plus 1.75% (the "Interest Rate ").
Interest Rate Swap is defined as the most recent monthly average interest rate swap for a five -
year term, as published by the Federal Reserve's Board of Governor's H.15 Statistical Release.
The Interest Rate shall be adjusted every fifth year on the Reset Date pursuant to the hereinafter
defined Bond Ordinance, and shall remain in effect until but not including the next Reset Date.
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 in approximately equal semiannual installments of $200,000 due on
December 1 and June 1, beginning June 1, 2016, to and including the Maturity Date, pursuant to
the payment schedule provided by the Bank after each Reset Date. The final payment of
principal of and interest on the Bond, whether at the Maturity Date or earlier prepayment, shall
be in an amount equal to the remaining principal and interest due on the Bond.
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. 2015 -033 of
the City (the "Bond Ordinance "). Capitalized terms used in this bond have the meanings given
such terms in the Bond Ordinance.
This bond is issued pursuant to the Bond Ordinance, to finance the costs of acquiring,
developing, constructing, and improving a soccer /multi -use sports complex and other park and
recreation capital projects in the City and to pay costs of issuance.
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The City may prepay this bond as provided in the Bond Ordinance.
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. Any proceeds of this bond not expended on the
Project or costs of issuance shall be pledged to payment of this bond and deposited in the Bond
Fund for such purpose.
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 Yakima, 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 17th day of November, 2015.
yPK' ,1
[SEAL] %, SEAS I CITY OF Y • KIMA, WASHINGTON
1 Q • ko • i
Ma or
ATTEST:
L
Acting City Clerk
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REGISTRATION CERTIFICATE
This bond is registered in the name of the Registered Owner on the books of the City, in
the office of the Director of Finance and Budget 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 Name and Address of Signature of
Registration Registered Owner Bond Registrar
_, 2015 Cashmere Valley Bank
Direct r o Finance and
Budget
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.
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Section 7. Application of Bond Proceeds. The City shall establish a fund designated
the "Project Fund" (the "Project Fund ") into which the proceeds of the Bond shall be deposited.
Money in the Project Fund shall be used to pay the costs of the Project and costs of issuance for
the Bond. The Director of Finance and Budget may invest money in the Project Fund in legal
investments for City funds. Earnings on such investments shall accrue to the benefit of the
Project Fund. Money remaining in the Project Fund after all costs of the Project and costs of
issuance for the Bond have been paid shall be pledged to payment of the Bond and deposited in
the Bond Fund for such purpose.
Section 8. 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.
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
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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 9. Right of Prepayment. The Bond may be prepaid, in whole or in part, on
any business day, upon at least 15 days written notice to the Bank, without prepayment penalty or
fee. Any prepayments shall be applied first to accrued and unpaid interest and then applied to
reduce the outstanding principal amount of the Bond. If the Bond is prepaid, in whole, in
accordance with this Section 9, interest shall cease to accrue on the date the Bank receives such
prepayment.
Section 10. Sale of the Bond. The Bond shall be sold to the Bank pursuant to the
terms of this ordinance and the Bank's Proposal. The City hereby accepts the Bank's Proposal,
which is attached as Exhibit A. The Director of Finance and Budget is hereby authorized to
approve the Interest Rate and the principal amount of the Bond and to agree to any other terms,
conditions and covenants that are in the best interest of the City and in accordance with the
Bank's Proposal so long as (a) the principal amount of the Bond does not exceed $5,000,000, and
(b) the initial Interest Rate for the Bond (to be effective until the first Reset Date) does not
exceed 5.00 %.
The appropriate City officials, including but not limited to the City Manager and the
Director of Finance and Budget, are hereby authorized and directed to do everything necessary
for the prompt issuance, execution and delivery of the Bond and for the proper application and
use of the proceeds thereof.
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Section 11. Ongoing Disclosure; Covenants.
(a) Ongoing Disclosure. The Bond is exempt from ongoing disclosure requirements
of the Rule.
(b) Covenants. So long as the Bond is outstanding, the City hereby covenants and
agrees as follows:
(1) To provide the Bank copies of the City's audited financial statements
within a reasonable time after it becomes available; and
(2) financial or other information as may be reasonably requested from time to
time.
Section 12. 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 13. 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,
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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.
Section 14. Effective Date of Ordinance. As provided in Article VI, Section 2 of the
Yakima City Charter, this ordinance shall become effective 30 days after the date of its passage
and publication.
ADOPTED by the City Council of the City of Yakima, Washington, at a regular meeting
thereof held this 17th day of November, 2015.
CITY OFT KIM , WASHINGTON
Micah Cawley, Mayor
YAK!, �h
ATTEST /AUTHENTIC • TED: t
/ 9 C LT I) / ) Jo/ tephens, Acng Clerk NT`s's,
Approved as to form:
Paci Ica Law Group L P
Passed by the City Council: 11 -17 -15
Date of Publication: 11 -20 -15
First Reading Date: 11 -3 -15
Effective Date: 12 -20 -15
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Exhibit A
Bank's Proposal
(attached)
} } t. ,„ .a
;QnIIaaee Bairn
November 3, 2015
Honorable City Council
City of Yakima
129 North 2n Street
Yakima, WA 98901
Honorable Council Members,
Thank you for the opportunity to provide an offer to purchase the City of Yakima,
Washington Limited Tax General Obligation Bond, 2015 (the "Bond "). Cashmere
Valley Bank, Cashmere, Washington is pleased to offer to purchase the Bond under the
following terms, subject to credit approval. Capitalized terms not defined herein have the
meaning given in the authorizing ordinance of the Bond anticipated to be adopted on
November 17, 2015 (the "Bond Ordinance ").
1. Issuer: City of Yakima, Washington (the "City ").
2. Amount: $5,000,000
3. Form: Fully registered, single instrument, taxable limited tax general
obligation bond issued by the City and purchased by the Bank at
private sale.
4. Purpose: Proceeds will be used to acquire, design, construct, and improve a
soccer /multi -use sports campus in the City as part of the project
with SOZO Sports, and other park and recreation capital projects,
as further described in the Bond Ordinance, and to pay the costs of
issuance of the Bond.
5. Bond Terms:
a) Interest Rate: The outstanding principal amount of the Bond shall bear
interest at a rate equal to the Interest Rate Swap (defined below), plus
1.75 %. The Interest Rate will be recalculated on each Reset Date (defined
herein). Currently, this would equal (1.55% + 1.75 %) = 3.30 %. Interest
City of Yakima
LTGO Bond 2015 (Taxable)
11 -3 -2015
Page 2
on the principal amount of the Bond shall be calculated per annum on a
30/360 basis.
The Interest Rate Swap means the most recent monthly average interest
rate swap for a 5 -year term, as published by the Federal Reserve's Board
of Governor's H.15 Statistical Release, available here:
http://www.federalreserve.gov/releases/H15/data htm
The Reset Date means December 1, 2020, December 1, 2025, and
December 1, 2030.
b) Terms: The Bond shall mature on December 1, 2035 (the "Maturity
Date "). Principal of and interest on the Bond shall be due in
approximately equal semiannual installments of $200,000 due June 1 and
December 1, beginning June 1, 2016, to and including the Maturity Date
or earlier prepayment. The final payment of principal of and interest on
the Bond, whether at the Maturity Date or earlier prepayment, shall be in
an amount equal to the remaining principal and interest due on the Bond.
The amortization schedule describing the payments of principal and
interest for the initial five years of the Bond will be provided by the Bank
by the closing date of the Bond. At each Reset Date, the Bank will
provide an updated amortization schedule to the City reflecting the
recalculated interest rate and the payments of principal and interest to the
next Reset Date.
c) Transferability: The Bank will hold the Bond with no intent to sell or
transfer. The Bond may be transferred as provided in the Bond Ordinance.
d) Security: The Bond is a limited tax general obligation of the City. For as
long as the Bond is outstanding, the City irrevocably pledges to include in
its budget and levy taxes annually within the constitutional and statutory
tax limitations provided by law without a vote of the electors of the City
on all of the taxable property within the City in an amount sufficient,
together with other money legally available and to be used therefor, to pay
when due the principal of and interest on the Bond. The full faith, credit
and resources of the City are pledged irrevocably for the annual levy and
collection of those taxes and the prompt payment of that principal and
interest.
6. Prepayment:
Upon 15 days written notice, the City may prepay the Bond, in whole or in
part on any business day, with no prepayment penalty. Any prepayments
City of Yakima
LTGO Bond 2015 (Taxable)
11 -3 -2015
Page 3
shall be applied first to accrued and unpaid interest and then applied to
reduce the outstanding principal amount of the Bond.
7. Fees: The Bank will not charge a loan fee for the purchase of the Bond. All
costs of issuing the Bond are the responsibility of the City.
8. Additional Terms: The Bond documents shall be in the standard forms
customarily required by the Bank for municipal funding and will include
additional terms and conditions not discussed above. The City will provide its
annual financial report to the Bank during the period the Bond is outstanding and
held by the Bank. At the date of closing the Bond, the financial condition and
credit of the City and all other features of this transaction will be as represented to
the Bank without material adverse change. In the event of adverse material
changes in the credit worthiness of the City, this offer will terminate upon notice
by the Bank. This offer is non - assignable by the City. This offer supersedes any
prior commitments, offers, or agreements written or oral, concerning this
financing and can only be modified in writing. .
9. Acceptance: This offer is not binding unless the City returns a signed copy of this
letter to the Bank prior to the close of business on November 24, 2015, at which
time this offer will expire upon notice by the Bank.
10. Closing: The Bond is anticipated to close on or about December 21, 2015. If after
acceptance, the Bond has not closed by December 31, 2015, this commitment will
expire without notice.
ORAL AGREEMENTS OR ORAL COMMITMENTS TO LOAN MONEY, EXTEND
CREDIT, OR TO FORBEAR FROM ENFORCING REPAYMENT OF A DEBT ARE
NOT ENFORCEABLE UNDER WASHINGTON LAW.
Thank you for the opportunity to work with the City and its finance team.
Sincerel,
im I nker
AVP, Municipal Lending & Investments
CASHMERE VALLEY BANK
City of Yakima
LTGO Bond 2015 (Taxable)
11 -3 -2015
Page 4
Acknowledged and accepted this t of November, 2015
CITY OF Y • I • , WASHINGTON
By:
Cindy Eppe son, b irector of Finance and Budget
Cc: Deanna Gregory, Pacifica Law Group
CERTIFICATE
I, the undersigned, the Clerk of the City Council (the "City Council ") of City of Yakima,
Washington (herein called the "City "), DO HEREBY CERTIFY:
1. That the attached ordinance numbered Ordinance 2015 -033 (herein called the
"Ordinance ") is a true and correct copy of an ordinance of the City, as finally adopted at a regular
meeting of the City Council held on the 17th day of November, 2015, and duly recorded in my
office.
2. That the 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
quorum of the City Council was present throughout the meeting and a legally sufficient number
of members of the City Council voted in the proper manner for the passage of said Ordinance;
that all other requirements and proceedings incident to the proper adoption of said Ordinance
have been duly fulfilled, carried out and otherwise observed, and that I am authorized to execute
this certificate.
IN WITNESS WHEREOF, I have hereunto set my hand this 17th day of November,
2015.
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zp`'''� Acting City erk
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1 CITY OF YAKIMA, WASHINGTON
LIMITED TAX GENERAL OBLIGATION BOND, 2015 (TAXABLE)
$5,000,000
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Bond Dated: December 22, 2015
Opinion Dated: December 22, 2015
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PACIFICA LAW GROUP LLP
1191 2nd Avenue, Suite 2000
Seattle, Washington 98101 -3404
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CITY OF YAKIMA, WASHINGTON
' LIMITED TAX GENERAL OBLIGATION BOND, 2015 (TAXABLE) - $5,000,000
1 RECORD OF PROCEEDINGS
ORGANIZATIONAL DOCUMENTS
1. Certificate for Transcript.
' 2. Certificate of the Yakima County Auditor stating the names and terms of office of the
present Mayor and members of the City Council.
' 3. Certificate of the Mayor stating the names of the City Clerk, Interim City Manager,
Director of Finance and Budget, and the City Attorney.
4. Certified copy of proceedings of the City Council last fixing the time, date and place of
' regular meetings of the City Council.
5. Certificate of the City Clerk stating the official newspaper of the City.
' 6. Certificate stating the assessed valuation of all of the taxable property within the City as
fixed in the fall of 2014 for the purposes of 2015 taxation.
' 7. Certificate of the Director of Finance and Budget as to the outstanding indebtedness of
the City, including any lease - purchase or conditional sale contracts and any general
' obligation debt.
8. Bond Counsel's Calculation of Debt Limit.
1 AUTHORIZATION OF BOND
9. Certified copy of Ordinance No. 2015 -033 passed on November 17, 2015 (the "Bond
Ordinance ") authorizing the issuance of the City's Limited Tax General Obligation Bond,
2015 (Taxable) (the . "Bond ").
' 10. Certified copy of the minutes of the City Council meeting held on November 3, 2015
showing the first reading of the Bond Ordinance.
' 11. Certified copy of the minutes of the City Council meeting held on November 17, 2015
showing the second reading and passage of the Bond Ordinance.
12. Publisher's Affidavit of Publication of the Bond Ordinance.
13. Executed Bond Purchase Offer of Cashmere Valley Bank (the "Purchaser ") and the City.
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CLOSING DOCUMENTS
' 14. Signature Identification Certificate and Nonlitigation Certificate.
15. Certificates of Manual Signature and Certificates of Mailing to Secretary of State.
' 16. Certificate of Investigation by Purchaser at Private Sale.
17. Bond Report Form 101.
18. Specimen Bond.
' 19. Certificate of Delivery of Bond.
' 20. Receipt for Bond.
21. Receipt for Bond Proceeds.
1 22. Closing Memorandum.
OPINION
' 23. Final approving legal opinion of Pacifica Law Group LLP.
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CERTIFICATE FOR TRANSCRIPT
1, SONYA CLAAR TEE, City Clerk of the City of Yakima, Washington (the "City "), do
1 hereby certify that the within and attached documents are in each case true and correct copies of
the originals of such documents and that none of the resolutions, ordinances, proceedings,
1 statements or certificates contained herein have been repealed, rescinded or canceled and all of
the officers last certified as holding City offices have continued to hold their respective offices
from such date to and including the date of this certificate.
' Dated as of this 22nd day of December, 2015.
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S ya Claar Tee, City C1; " ' #
City of Yakima, Washin tiq i ° S'1
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}�` 4, Yakima County Elections
io Incumbency Certificate
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I, CHARLES R. ROSS, County Auditor, Yakima County, Washington, do hereby certify that
' according to the records on file in my office, that prior to the November 3, 2015 election, the
following individuals served as councilmembers for the City of Yakima, Yakima County,
Washington.
Office holder Position Term of office Notes
Maureen S. Adkison 1 1/2012 — 12/2015
Thomas Dittmar 2 1/2012 — 12/2015 Appointed 1.18.2014
Rick Ensey 3 1/2012 — 12/2015
Kathy Coffey 4 1/2012 — 12/2015
Dave Ettl 5 1 /2014 — 12/2017
Micah D. Cawley 6 1/2014 — 12/2017
Bill Lover 7 1/2014 — 12/2017
' DATED this 7th day of December, 2015.
' CH • t E R. ROSS, Yakima County Auditor and
Ex-o cio Supervisor of Elections
Yakima County, Washington
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CERTIFICATE
I I, MICAH CAWLEY, the duly elected Mayor of the City of Yakima, Washington
I (the "City "), do hereby certify that Jeff Cutter is the duly appointed Interim City Manager, Sonya
Claar Tee is the duly appointed City Clerk, and Cindy Epperson is the duly appointed Director of
I Finance and Budget of the City of Yakima.
t Dated as of this 22nd day of December, 2015.
Vii'd
Micah Cawley, ayor
I City of Yakima, Washington
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1 CERTIFICATE
I, SONYA CLAAR TEE, City Clerk of the City of Yakima, do hereby certify that the
1 attached is a true and correct copy of the proceedings of the City Council setting the date, time
and place for regular meetings of the City Council.
' Dated as of this 22nd day of December, 2015.
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So It Claar Tee, City Cl- , N h�
City of Yakima, Washin_ ot,S'v %
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RESOLUTION NO. R- 2014 -144
1 A RESOLUTION adopting the City Council 2015 regular business meeting
schedule
1 WHEREAS, pursuant to the Open Meetings Act, the Council is adopting an annual
mee schedule totaling 24 meetings, consisting of two business meetings per month;
and
1 WHEREAS, the proposed schedule provides for regular meetings to occur with
starting times of 6 p.m. on specified Tuesdays of each month with exceptions provided for
' recess periods or when a meeting would fall on a City, religious or cultural holiday or
Election Day or another event; and
WHEREAS, a majority of the Council may call special meetings or revise the
1 regular meeting schedule when necessary; and
WHEREAS, unless otherwise specially revised in the future, regular meetings of
1 the City Council for calendar year 2015 shall be held on the days set forth below.
January 6 and 20
' February 3 and 17
March 3 and 17
April 7 and 21
May 5 and 19
June 2 and 16
July 7 and 21
August 4 and 18 (August 4 meeting to be held at 2 p.m. in honor of National
Night Out Activities)
September 1 and 15
October 6 and 20
' November 3 and 17
December 1 and 8 (first and second Tuesday of the month — the December 8
meeting will be held at 2 p.m.)
I Regular meetings of the City Council shall be scheduled to commence at 6 p.m.
unless otherwise noticed in this resolution or revised in the future and legally noticed and
posted for a revised meeting time; and
1 WHEREAS, in the event the City Council fails to adopt a resolution to establish
regular meeting dates for any calendar year, the regular meetings of the City Council for
such calendar year shall be the first and third Tuesdays of each month, except any
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Tuesday which falls upon the day of an authorized City holiday, in which event the first
Tuesday thereafter which is not a holiday shall be a regular meeting day; and
' WHEREAS, notwithstanding any other provision of this resolution, any regular
meeting of the Council may be set, canceled or rescheduled to a different date, time or
location by motion duly adopted by the affirmative votes of at least four members of the
City Council or by any other manner as provided by law. The date, time and location of
any meeting set or rescheduled to a different date, time or location shall be noticed and
posted in the manner provided by law; and
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1 WHEREAS, this resolution shall supersede and render null and void the
provisions of any prior resolution to the extent such provisions are inconsistent with the
provisions of this resolution. The resolution shall become operative on January 1, 2015;
and
WHEREAS, the City Council deems it to be in the best interest of the City of
Yakima, now, therefore,
1 BE IT RESOLVED BY THE CITY COUNCIL OF THE CITY OF YAKIMA:
1 That the City Council of the City of Yakima adopts the 2015 regular meeting
schedule on specified Tuesdays as indicated.
ADOPTED BY THE CITY COUNCIL this 9 day of December, 2014.
114)(
1 Micah C ley, Mayor
ATTEST
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So a Claar Tee, City Clerk - = • =..
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CERTIFICATE
' I, SONYA CLAAR TEE, City Clerk of the City of Yakima, Washington (the "City "), do
' hereby certify that The Yakima Herald - Republic is the official newspaper of the City.
Dated as of this 22nd day of December, 2015.
1 So 44 Claar Tee, City Ckeik•',s I *°
City of Yakima, Washington: -/1 J ¢ 1
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1 f'�NGTO�
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$T• SERVICE • E�
1 �= Dave Cook Assessor
v o o : .. M Courthouse • Room 112 • Yakima, WA 98901 • (509) 574 -1100
Toll Free 800 -572 -7354 • FAX (509) 574 -1101
website: www.co.yakima.wa.us /assessor
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1 Wednesday, December 16, 2015
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TO: Kristin Patterson, Pacifica Law Group
1 FROM:
RE: Jacob Tate, Yakima County Property Database Coordinator
Certification of Taxable Value of the City of Yakima
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The Yakima County Assessor's Office certifies the total taxable value for 2015 taxing
1 purposes of the City of Yakima to be $5,580,450,450 for bond purposes. This value
includes the effect of all senior citizen exemptions. There is no Timber Assessed Value
in the district.
1 If you should have any questions please call our office at (509) 574 -1100.
(/e
1 Jacob Tate
Property Database Coordinator
Yakima County
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CERTIFICATE REGARDING OUTSTANDING DEBT
1 I, CINDY EPPERSON, Director of Finance and Budget of the City of Yakima, Washington
(the "City "), do hereby certify that the following are all of the City's currently outstanding general
obligation bonds and long -term leases and financing contracts as of December 22, 2015 (excluding
1 the City's Limited Tax General Obligation Bond, 2015 (Taxable) issued on the date hereof):
Nonvoted General Obligation Bonds and Obligations:
Designation Outstanding Balance
LTGO Bonds, 2003 Series A $ 555,288
LTGO Refunding Bonds, 2004 1,475,000
LTGO and Refunding Bonds, 2007 5,720,000
LTGO Bonds, 2008 1,265,000
LTGO Bonds, 2009 Series A 710,000
LTGO Bonds, 2009 Series B 4,980,000
LTGO Bonds, 2013 4,253,078
LTGO Bonds, 2014 12,255,000
Long -term leases and conditional sale contracts (including COPs) and other debt:
1 Designation Outstanding Balance
CERB Loan $ 33,745
LOCAL Program — Two Fire Apparatus 311,443
LOCAL Program — Fire Apparatus 258,748
LOCAL Program — Police Vehicles /Fire Packs 3,194,706
Dated as of this 22nd day of December, 2015.
Ci"� t7 %. 1 - i3Y\
' Cindy Epperson, Director of Finance and Budget
City of Yakima, Washington
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BOND COUNSEL'S CALCULATION OF DEBT LIMIT
Value of Taxable Property within the City of Yakima, Washington, as set
in 2014 for purposes of 2015 regular and excess levies, per certificate of
' the Yakima County Assessor: $ 5,580,450,450
Nonvoted Limited Indebtedness:
Nonvoted Debt Ceiling per RCW 39.36.020: 1.50% of value of taxable
property $ 83,706,757
Less:
Nonvoted debt outstanding per Certificate of Director of Finance and
1 Budget ($ 31,213,366)
Leases /Sale Contracts ($ 3,798,642)
Proposed Limited Tax General Obligation Bond, 2015 ($ 5,000,000)
Total Nonvoted Debt ($ 40,012,008)
Remaining Nonvoted Debt Capacity $ 43,694,749
1 Total Debt Ceiling for General Municipal Purposes, Voted and
Nonvoted: 2.50% value of taxable property (RCW 39.36.020) $ 139,511,261
Less:
1 Voted Debt Outstanding per Certificate of the City Director of
Finance and Budget ($ 0)
1 Nonvoted debt from above
Total Debt ($ 40,012,008)
($ 40,012,008)
Remaining Debt Capacity Unused: $ 99,499,253
Based upon the certificate of assessed valuation of the Yakima County Assessor and the
certificate of general obligation debt outstanding as of December 22, 2015 of the City of
1 Yakima, Washington (the "City "), the issuance of the Limited Tax General Obligation Bond,
2015 (Taxable) by the City, will be within the constitutional and statutory limits for nonvoted,
voted and total indebtedness.
1 Dated as of this 22nd day of December, 2015.
PACIFICA LAW GROUP LLP
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Deanna Gregory
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CERTIFICATE REGARDING ORDINANCE
I, SONYA CLAAR TEE, City Clerk of the City of Yakima, Washington (the "City "), do
1 hereby certify:
1. That the attached Ordinance No. 2015 -033 (the "Ordinance ") is a true and correct
copy of an ordinance of the City Council, as finally adopted at a regular meeting of the City
Council held on November 17, 2015, and duly recorded in my office, and that such Ordinance
has not been amended or superseded.
' 2. That the 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 the meeting was given; that a
' legal quorum was present throughout the meeting and a legally sufficient number of members of
the City Council voted in the proper manner for the adoption of the Ordinance; that all other
requirements and proceedings incident to the proper adoption of the Ordinance have been duly
' fulfilled, carried out and otherwise observed; and that I am authorized to execute this certificate.
Dated this 22nd day of December, 2015.
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Sonyaaaar Tee, City Cle�' Y ./ c/4/
City of akima, Washin of ) ����
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CITY OF YAKIMA, WASHINGTON
ORDINANCE NO. 2015-033
AN ORDINANCE OF THE CITY COUNCIL OF THE CITY OF
YAKIMA, WASHINGTON, AUTHORIZING THE ISSUANCE
1 AND SALE OF A LIMITED TAX GENERAL OBLIGATION
BOND OF THE CITY IN THE PRINCIPAL AMOUNT OF NOT
TO EXCEED $5,000,000 TO FINANCE COSTS RELATED TO
1 ACQUIRING, DESIGNING, CONSTRUCTING AND
IMPROVING A SOCCER/MULTI -USE SPORTS CAMPUS
AND OTHER PARK PROJECTS IN THE CITY; PROVIDING
1 THE FORM OF THE BOND; AND AUTHORIZING THE SALE
OF THE BOND TO CASHMERE VALLEY BANK.
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Passed November 17, 2015
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1 PREPARED BY:
PACIFICA LAW GROUP LLP
Seattle, Washington
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CITY OF YAKIMA
' ORDINANCE NO. 2015-033
TABLE OF CONTENTS*
' Page
Section 1. Definitions and Interpretation of Terms 2
1 Section 2. Authorization of the Project 5
Section 3. Authorization of the Bond 5
1 Section 4. Registration, Exchange and Payments 6
Section 5. Form of Bond 7
1 Section 6. Execution of Bond 9
Section 7. Application of Bond Proceeds 10
Section 8. Pledge of Funds and Credit; General Obligation 10
Section 9. Right of Prepayment 11
Section 10. Sale of the Bond 11
Section 11. Ongoing Disclosure; Covenants 12
Section 12. Lost, Stolen or Destroyed Bond 12
Section 13. Severability; Ratification 12
1 Section 14. Effective Date of Ordinance 13
Exhibit A: Proposal
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* This Table of Contents is provided for convenience only and is not a part of this ordinance.
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CITY OF YAKIMA, WASHINGTON
ORDINANCE NO. 2015 -033
AN ORDINANCE OF THE CITY COUNCIL OF THE CITY OF
YAKIMA, WASHINGTON, AUTHORIZING THE ISSUANCE
AND SALE OF A LIMITED TAX GENERAL OBLIGATION
BOND OF THE CITY IN THE PRINCIPAL AMOUNT OF NOT
1 TO EXCEED $5,000,000 TO FINANCE COSTS RELATED TO
ACQUIRING, DESIGNING, CONSTRUCTING AND
IMPROVING A SOCCER/MULTI -USE SPORTS CAMPUS
AND OTHER PARK PROJECTS IN THE CITY; PROVIDING
THE FORM OF THE BOND; AND AUTHORIZING THE SALE
OF THE BOND TO CASHMERE VALLEY BANK.
WHEREAS, the City of Yakima, Washington (the "City "), has entered into an agreement
(the "Agreement ") with Sozo Sports of Central Washington, a non - profit corporation ( "Sozo "),
' for the development, management, and operation of a premier soccer /multi -sports campus and
indoor sports facility to serve the citizens of the City and the surrounding communities
(the "Sports Complex "); and
' WHEREAS, the proposed Sports Complex will provide approximately 17 outdoor fields
and an indoor soccer /sports facility, and will also provide passive recreational opportunities when
the sports fields are not in use; and
WHEREAS, the Sports Complex will also provide the City's youth and adults with
soccer and recreational opportunities while generating economic opportunity to the City and
surrounding areas; and
1 WHEREAS, pursuant to the Agreement, the City has agreed to acquire, own, develop,
construct and improve a portion of the outdoor soccer /sports fields and related improvements to
be used as part of the Sports Complex, which will be maintained and operated by Sozo; and
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WHEREAS, the City now desires to issue a limited tax general obligation bond to pay a
1 portion of its costs related to the Sports Complex and other park and recreation capital projects in
the City (the "Project "); and
' WHEREAS, the City has received an offer from Cashmere Valley Bank, Cashmere,
1 Washington (the "Bank ") set forth in Exhibit A attached hereto (the "Proposal "), to purchase a
limited tax general obligation bond of the City in the principal amount of not to exceed
$5,000,000 (the "Bond ") for the purpose of financing the Project; and
WHEREAS, it is deemed necessary and advisable that the City accept the Bank's offer
1 and issue the Bond as set forth herein;
NOW, THEREFORE, THE CITY COUNCIL OF THE CITY OF YAKIMA,
1 WASHINGTON, DOES ORDAIN AS FOLLOWS:
1 Section 1. Definitions and Interpretation of Terms.
(a) Definitions. As used in this ordinance, the following words shall have the
following meanings:
1 Bank means Cashmere Valley Bank, Cashmere, Washington.
1 Bond means the Limited Tax General Obligation Bond, 2015 (Taxable) authorized to be
issued by the City pursuant to this ordinance.
Bond Counsel means Pacifica Law Group LLP, Seattle, Washington.
1 Bond Fund means the "Bond Redemption Fund" authorized to be created pursuant to
Section 8 of this ordinance.
Bond registration Register means the istration records for the Bond maintained by the Bond
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1 Registrar.
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Bond Registrar means the Director of Finance and Budget of the City, whose duties
1 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.
City means the City of Yakima, Washington, a municipal corporation duly organized and
1 existing under the laws of the State of Washington.
City Council or Counci/ 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.
1 City Manager means the City Manager, or the successor of such office.
1 Director of Finance and Budget means the Director of Finance and Budget of the City,
or the successor of such office.
' Interest Rate means a rate equal to the Interest Rate Swap, plus 1.75 %. The Interest Rate
1 shall reset each Reset Date, and shall remain in effect until but not including the next Reset Date.
Interest Rate Swap means the most recent monthly average interest rate swap for a five-
year published ' term, as by the Federal Reserve's Board of Governor's H.15 Statistical Release.
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1 Maturity Date means December 1, 2035.
Project means the project described in Section 2 of this ordinance.
Project Fund means the "Project Fund" authorized to be created pursuant to Section 7 of
this ordinance.
1 Proposal means the proposal letter submitted by the Bank substantially in the form
attached hereto as Exhibit A.
Sports Complex means the soccer /multi -sports campus and indoor sports facility located
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' Registered Owner means the person in whose name the Bond is registered on the Bond
1 Register.
Reset Date means December 1, 2020, December 1, 2025, and December 1, 2030.
' Rule means the Securities and Exchange Commission's Rule 15c2 -12 under the
1 Securities Exchange Act of 1934, as the same may be amended from time to time.
(b) Interpretation. In this ordinance, unless the context otherwise requires:
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(1) 1 The terms "hereby," "hereof," "hereto," "herein," "hereunder" and any
1 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
1 (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
1 ordinance, and any table of contents or marginal notes appended to copies hereof, shall be solely
1 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
1 clauses are to the corresponding articles, sections, subdivisions or clauses hereof.
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Section 2. Authorization of the Project. The Bond is being issued to finance costs
1 related to acquiring, developing, constructing, and improving a portion of the outdoor
soccer /sports fields and related improvements to be used as part of the Sports Complex, and
' other park and recreation capital projects in the City (the "Project ").
1 Section 3. Authorization of the Bond. For the purpose of financing costs of the
Project and paying costs of issuance for the Bond, the City hereby authorizes the issuance and
of its limited tax general obligation bond in the
sale o principal amount of not to exceed g g p
1 $5,000,000. The bond shall be designated the "City of Yakima, Washington, Limited Tax
General Obligation Bond, 2015 (Taxable)," or other such designation as set forth in the Bond and
approved by the Director of Finance and Budget.
' The Bond shall be dated as of its date of delivery, shall be fully registered as to both
1 principal and interest, shall be in one denomination, and shall mature on the Maturity Date. The
Bond shall bear interest from its dated date or the most recent date to which interest has been
paid at the Interest Rate. The Interest Rate shall be adjusted on each Reset Date, and shall remain
1 in effect until but not including the next Reset Date. Interest on the principal amount of the Bond
shall be calculated per annum on a 30/360 basis. Principal of and interest on the Bond shall be
payable in approximately equal semiannual installments of $200,000 due December 1 and
1 June 1, beginning June 1, 2016, to and including the Maturity Date, pursuant to the payment
1 schedule provided by the Bank after each Reset Date. The final payment of principal and interest
on the Bond, whether at the Maturity Date or earlier prepayment, shall be in an amount equal to
' the remaining principal and interest due on the Bond.
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Section 4. Registration, Exchange and Payments.
1 (a) Registrar /Bond Registrar. The Director of Finance and Budget 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
1 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
1 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.
1 (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
1 the Bank by means of a corporate merger, an exchange of stock, or a sale of assets.
(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
1 complies with the provisions of Section 149 of the Code.
1 (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, ACH transfer or by other means mutually acceptable to the
1 Bank and the City. 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
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with this Section 4 and Section 12.
1 Section 5. Form of Bond. The Bond shall be in substantially the following form:
UNITED STATES OF AMERICA
1 NO. R -1 $
' STATE OF WASHINGTON
CITY OF YAKIMA
LIMITED TAX GENERAL OBLIGATION BOND, 2015 (TAXABLE)
' INTEREST RATE: VARIABLE, AS DESCRIBED BELOW
MATURITY DATE: DECEMBER 1, 2035
REGISTERED OWNER: CASHMERE VALLEY BANK
PRINCIPAL AMOUNT: MILLION AND NO /100 DOLLARS
1 The City of Yakima, 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 a rate equal to the Interest Rate Swap, plus 1.75% (the "Interest Rate ").
' Interest Rate Swap is defined as the most recent monthly average interest rate swap for a five -
year term, as published by the Federal Reserve's Board of Governor's H.15 Statistical Release.
The Interest Rate shall be adjusted every fifth year on the Reset Date pursuant to the hereinafter
1 defined Bond Ordinance, and shall remain in effect until but not including the next Reset Date.
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 in approximately equal semiannual installments of $200,000 due on
December 1 and June 1, beginning June 1, 2016, to and including the Maturity Date, pursuant to
the payment schedule provided by the Bank after each Reset Date. The final payment of
' principal of and interest on the Bond, whether at the Maturity Date or earlier prepayment, shall
be in an amount equal to the remaining principal and interest due on the Bond.
1 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. 2015 -033 of
' the City (the "Bond Ordinance "). Capitalized terms used in this bond have the meanings given
such terms in the Bond Ordinance.
' This bond is issued pursuant to the Bond Ordinance, to finance the costs of acquiring,
developing, constructing, and improving a soccer /multi -use sports complex and other park and
recreation capital projects in the City and to pay costs of issuance.
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The City may prepay this bond as provided in the Bond Ordinance.
I 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
I interest on this bond.
The City hereby irrevocably covenants and agrees with the owner of this bond that it will
1 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
I 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. Any proceeds of this bond not expended on the
I Project or costs of issuance shall be pledged to payment of this bond and deposited in the Bond
Fund for such purpose.
1 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
I have been manually signed by or on behalf of the Bond Registrar or its duly designated agent.
This bond is issued p ursuant 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
I conditions set forth in the Bond Ordinance.
is hereby certified that all acts, conditions and things required by the Constitution and
I Tt
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
I upon the amount of bonded indebtedness that the City may incur.
IN WITNESS WHEREOF, the City of Yakima, Washington, has caused this bond to be
I 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 17th day of November, 2015.
�,
[SEAL] i i i. SE M - . Q CITY OF Y KIMA, WASHINGTON
f ' � � L�r G`y! B
Y I )t/ 4 /
��-�' Ma or
I ATTEST:
' Acting City Clerk
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REGISTRATION CERTIFICATE
This bond is registered in the name of the Registered Owner on the books of the City, in
the office of the Director of Finance and Budget 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 Name and Address of Signature of
1 Registration Registered Owner Bond Registrar
2015 Cashmere Valley Bank 444 _ b�=
1 — Director o' Finance and
Budget
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
1 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.
1 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
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Bond Registrar, or issued by the City, such Bond may nevertheless be authenticated, delivered
1 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
1 such Bond any such person shall not have been such officer of the City.
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Section 7. Application of Bond Proceeds. The City shall establish a fund designated
the "Project Fund" (the "Project Fund ") into which the proceeds of the Bond shall be deposited.
Money in the Project Fund shall be used to pay the costs of the Project and costs of issuance for
' the Bond. The Director of Finance and Budget may invest money in the Project Fund in legal
1 investments for City funds. Earnings on such investments shall accrue to the benefit of the
Project Fund. Money remaining in the Project Fund after all costs of the Project and costs of
issuance for the Bond have been paid shall be pledged to payment of the Bond and deposited in
the Bond Fund for such purpose.
1 Section 8. 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
1 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
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payment principal p ment of such rind al 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
1 other revenues and money of the City legally available for such purposes, to pay the principal of
and interest on the Bond when due.
' The City hereby irrevocably pledges that the annual tax provided for herein to be levied
for the payment of such principal and interest shall be within and as a part of the tax levy
permitted to cities without a vote of the people, and that a sufficient portion of each annual levy
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to be levied and collected by the City prior to the full payment of the principal of and interest on
I 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
I hereby irrevocably pledged for the annual levy and collection of said taxes and for the prompt
1 payment of the principal of and interest on the Bond when due.
I Section 9. Right of Prepayment. The Bond may be prepaid, in whole or in part, on
any business day, upon at least 15 days written notice to the Bank, without prepayment penalty or
fee. Any prepayments shall be applied first to accrued and unpaid interest and then applied to
1 reduce the outstanding principal amount of the Bond. If the Bond is prepaid, in whole, in
accordance with this Section 9, interest shall cease to accrue on the date the Bank receives such
1 prepayment.
1 Section 10. Sale of the Bond. The Bond shall be sold to the Bank pursuant to the
terms of this ordinance and the Bank's Proposal. The City hereby accepts the Bank's Proposal,
I which is attached as Exhibit A. The Director of Finance and Budget is hereby authorized to
1 approve the Interest Rate and the principal amount of the Bond and to agree to any other terms,
conditions and covenants that are in the best interest of the City and in accordance with the
Bank's Proposal so long as (a) the principal amount of the Bond does not exceed $5,000,000, and
(b) the initial Interest Rate for the Bond (to be effective until the first Reset Date) does not
1 exceed 5.00 %.
The appropriate City officials, including but not limited to the City Manager and the
I Director of Finance and Budget, are hereby authorized and directed to do everything necessary
111 for the prompt issuance, execution and delivery of the Bond and for the proper application and
use of the proceeds thereof.
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Section 11. Ongoing Disclosure; Covenants.
(a) Ongoing Disclosure. The Bond is exempt from ongoing disclosure requirements
of the Rule.
(b) Covenants. So long as the Bond is outstanding, the City hereby covenants and
agrees as follows:
(1) To provide the Bank copies of the City's audited financial statements
within a reasonable time after it becomes available; and
1 (2) financial or other information as may be reasonably requested from time to
1 time.
Section 12. 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
1 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
1 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
1 together with written certification that such Bond was actually lost, stolen or destroyed and of its
ownership thereof.
' Section 13. 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,
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1 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.
1 Section 14. Effective Date of Ordinance. As provided in Article VI, Section 2 of the
Yakima City Charter, this ordinance shall become effective 30 days after the date of its passage
1
and publication.
ADOPTED by the City Council of the City of Yakima, Washington, at a regular meeting
thereof held this 17th day of November, 2015.
CITY Old KIM , WASHINGTON
1 (/
Micah Cawley, Mayor
1
ATTEST /AUTHENTIC • TED: f
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1 ��
Jo; tephens, Ac mg r Clerk
,,; c ti
Approved as to form: Co
Pact Ica 1 ica Law Group Ilk
' Passed by the City Council: 11 -17 -15
Date of Publication: 11 -20 -15
First Reading Date: 11 -3 -15
Effective Date: 12 -20 -15
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Exhibit A
' Bank's Proposal
(attached)
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sa meTre: 'a loBaii1
November 3, 2015
1 Honorable City Council
City of Yakima
129 North 2 Street
1 Yakima, WA 98901
Honorable Council Members,
Thank you for the opportunity to provide an offer to purchase the City of Yakima,
Washington Limited Tax General Obligation Bond, 2015 (the "Bond "). Cashmere
' Valley Bank, Cashmere, Washington is pleased to offer to purchase the Bond under the
following terms, subject to credit approval. Capitalized terms not defined herein have the
meaning given in the authorizing ordinance of the Bond anticipated to be adopted on
1 November 17, 2015 (the "Bond Ordinance ").
1. Issuer: City of Yakima, Washington (the "City ").
1 2. Amount: $5,000,000
' 3. Form: Fully registered, single instrument, taxable limited tax general
obligation bond issued by the City and purchased by the Bank at
private sale.
4. Purpose: Proceeds will be used to acquire, design, construct, and improve a
soccer /multi -use sports campus in the City as part of the project
' with SOZO Sports, and other park and recreation capital projects,
as further described in the Bond Ordinance, and to pay the costs of
issuance of the Bond.
1 5. Bond Terms:
' a) Interest Rate: The outstanding principal amount of the Bond shall bear
interest at a rate equal to the Interest Rate Swap (defined below), plus
1.75 %. The Interest Rate will be recalculated on each Reset Date (defined
herein). Currently, this would equal (1.55% + 1.75 %) = 3.30 %. Interest
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' City of Yakima
LTGO Bond 2015 (Taxable)
11 -3 -2015
Page 2
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on the principal amount of the Bond shall be calculated per annum on a
30/360 basis.
The Interest Rate Swap means the most recent monthly average interest
rate swap for a 5 -year term, as published by the Federal Reserve's Board
' of Governor's H.15 Statistical Release, available here:
http: / /www.federalreserve.gov /releases /H 15 /data.htm
' The Reset Date means December 1, 2020, December 1, 2025, and
December 1, 2030.
1 b) Terms: The Bond shall mature on December 1, 2035 (the "Maturity
Date "). Principal of and interest on the Bond shall be due in
approximately equal semiannual installments of $200,000 due June 1 and
December 1, beginning June 1, 2016, to and including the Maturity Date
or earlier prepayment. The final payment of principal of and interest on
the Bond, whether at the Maturity Date or earlier prepayment, shall be in
1 an amount equal to the remaining principal and interest due on the Bond.
The amortization schedule describing the payments of principal and
interest for the initial five years of the Bond will be provided by the Bank
' by the closing date of the Bond. At each Reset Date, the Bank will
provide an updated amortization schedule to the City reflecting the
recalculated interest rate and the payments of principal and interest to the
next Reset Date.
c) Transferability: The Bank will hold the Bond with no intent to sell or
transfer. The Bond may be transferred as provided in the Bond Ordinance.
d) Security: The Bond is a limited tax general obligation of the City. For as
' long as the Bond is outstanding, the City irrevocably pledges to include in
its budget and levy taxes annually within the constitutional and statutory
tax limitations provided by law without a vote of the electors of the City
' on all of the taxable property within the City in an amount sufficient,
together with other money legally available and to be used therefor, to pay
when due the principal of and interest on the Bond. The full faith, credit
' and resources of the City are pledged irrevocably for the annual levy and
collection of those taxes and the prompt payment of that principal and
interest.
1 6. Prepayment:
' Upon 15 days written notice, the City may prepay the Bond, in whole or in
part on any business day, with no prepayment penalty. Any prepayments
1
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I City of Yakima
LTGO Bond 2015 (Taxable)
11 -3 -2015
Page 3
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shall be applied first to accrued and unpaid interest and then applied to
I reduce the outstanding principal amount of the Bond.
7. Fees: The Bank will not charge a loan fee for the purchase of the Bond. All
I costs of issuing the Bond are the responsibility of the City.
8. Additional Terms: The Bond documents shall be in the standard forms
customarily required by the Bank for municipal funding and will include
I additional terms and conditions not discussed above. The City will provide its
annual financial report to the Bank during the period the Bond is outstanding and
held by the Bank. At the date of closing the Bond, the financial condition and
1 credit of the City and all other features of this transaction will be as represented to
the Bank without material adverse change. In the event of adverse material
changes in the credit worthiness of the City, this offer will terminate upon notice
1 by the Bank. This offer is non - assignable by the City. This offer supersedes any
prior commitments, offers, or agreements written or oral, concerning this
financing and can only be modified in writing. .
I 9. Acceptance: This offer is not binding unless the City returns a signed copy of this
letter to the Bank prior to the close of business on November 24, 2015, at which
1 time this offer will expire upon notice by the Bank.
10. Closing: The Bond is anticipated to close on or about December 21, 2015. If after
I acceptance, the Bond has not closed by December 31, 2015, this commitment will
expire without notice.
I ORAL AGREEMENTS OR ORAL COMMITMENTS TO LOAN MONEY, EXTEND
CREDIT, OR TO FORBEAR FROM ENFORCING REPAYMENT OF A DEBT ARE
NOT ENFORCEABLE UNDER WASHINGTON LAW.
1 Thank you for the opportunity to work with the City and its finance team.
I Sincerel,
1 im ' raker
AVP, Municipal Lending & Investments
1 CASHMERE VALLEY BANK
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I City of Yakima
LTGO Bond 2015 (Taxable)
11-3-2015
Page 4
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Acknowledged and accepted this \ day of November, 2015
1 CITY OF Y • • , WASHINGTON
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By:
Cindy Eppe son, & hector of Finance and Budget
1 Cc: Deanna Gregory, Pacifica Law Group
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CERTIFICATE
I, the undersigned, the Clerk of the City Council (the "City Council ") of City of Yakima,
1 Washington (herein called the "City "), DO HEREBY CERTIFY:
1. That the attached ordinance numbered Ordinance 2015 -033 (herein called the
"Ordinance ") is a true and correct copy of an ordinance of the City, as finally adopted at a regular
1 meeting of the City Council held on the 17th day of November, 2015, and duly recorded in my
office.
2. That the meeting was duly convened and held in all respects in accordance with
1 law, and to the extent required by law, due and proper notice of such meeting was given; that a
1 quorum of the City Council was present throughout the meeting and a legally sufficient number
of members of the City Council voted in the proper manner for the passage of said Ordinance;
that all other requirements and proceedings incident to the proper adoption of said Ordinance
1 have been duly fulfilled, carried out and otherwise observed, and that I am authorized to execute
this certificate.
' IN WITNESS WHEREOF, I have hereunto set my hand this 17th day of November,
1 2015.
C;• P/
7 E t, '17 °
L t, '1 ,f%
Acting City erk
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I CERTIFICATE
I, SONYA CLAAR TEE, City Clerk of the City of Yakima, Washington (the "City "), do
I hereby certify that the attached is a true and correct copy of the minutes of the November 3,
2015, regular meeting of the City Council which reflects the first reading of Ordinance
I No. 2015 -033.
I Dated as of this 22nd day of December, 2015.
1 / / � 14 ''ti-9
tea. i�I ' *: * � t ,
• Claar Tee, City E-r1� ' '�
I eJO
Ci •f Yakima, Wash in Agri; , ° *� 4,p" 4�'
1 1 s G- I .
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YAKIMA CITY COUNCIL
II November 3, 2015
City Hall — Council Chambers
1 6 p.m. Business Meeting; 6:30 Public Hearings
1 BUSINESS MEETING
1. Roll Call
I Council: Mayor Micah Cawley, presiding, Assistant Mayor Kathy Coffey, Council Members
Maureen Adkison, Tom Dittmar, Rick Ensey (left the meeting at 7:06 p.m.), Dave Ettl and
Bill Lover
1 Staff: City Manager O'Rourke, City Attorney Cutter and Acting City Clerk Stephens
2. Pledge of Allegiance
I Mayor Cawley led the Pledge of Allegiance.
3. Open Discussions for the Good of the Order
I A. Presentations / Recognitions / Introductions
1 i. Water Treatment Plant Awarded Department of Health Top Ops Silver
Certificate
I Water and Irrigation Manager Dave Brown and Supervisor Jeff Bond provided details of
the TOPS program Silver Award presented to the Water Treatment Plant and staff.
ii. Presentation of Annual Historic Preservation Awards for 2015
I Joe Mann discussed three awards presented for 2015 by the Historic Preservation
Commission. The Inspirational Award was awarded to Roger and Michelle Wilson of
1 Wilson Real Estate for their commitment to historic properties in the City. The Project
Award went to the Morrier Family for their work to create a boutique hotel in the Great
Western Building /JEM Building. The Research Award went to Valerie Smith and Robbie
I Aaron of the City Planning Staff for their work. Mayor Cawley read the Proclamations and
presented the awards.
iii. Recognition of 35 Years of Service for Steve Martinez and 25 Years
I of Service for Emilio Lopez
Water and Irrigation Manager Dave Brown recognized Water Division employees Emilio
I Lopez for 25 years of service and Steve Martinez for 35 years of service.
iv. Central Washington State Fair third quarter report
1
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' Greg Lybeck, Assistant General Manager of the Central Washington State Fair Association
and State Fair Park, provided recent statistics and reviewed the report included in the
Council packet. He invited Council to call at anytime to see the operations and thanked the
' City for their partnership. Discussion ensued regarding adding the Central Washington
State Fair as another member of the Lodging Tax Advisory Committee. City Attorney
Cutter suggested staff prepare documents for Council consideration.
1 v. Yakima River Basin Integrated Plan Status Report and a Support
Request– fifteen minute presentation with PowerPoint
' Water and Irrigation Manager Dave Brown and guests from the Yakima Basin Integrated
Plan Outreach group presented a PowerPoint of the Yakima River Basin Integrated Plan
Status Report.
B. Appointments to Boards, Commissions and Council Committees
1 i. Council Nominating Committee recommendations for appointment
This item was postponed.
1 4. Council Reports
None.
5. Consent Agenda
Mayor Cawley referred to the items placed on the Consent Agenda, questioning whether
' there were any additions or deletions from Council members or citizens present. Item F
(now Item 8)was removed from the consent agenda and items 9 (now 5H) and 10 (now 51)
were added to the consent agenda. The City Clerk read the Consent Agenda items,
1 including resolutions and ordinances, by title. (Items on the Consent Agenda are handled
under one motion without further discussion —see motion directly below.)
' MOTION: Coffey moved and Adkison seconded to approve the consent agenda.
The motion carried by unanimous vote, Ensey absent.
1 A. Set date of November 17, 2015 for a public hearing on: A. proposed 2016
Revenue and Expenditure Budget for the City of Yakima with a second public
hearing on December 1, 2015; and B. 2016 Ad Valorem (Property) Tax
B. Resolution authorizing a contract with Yakima Habitat for Humanity for the sum of
$45,000 to purchase lot and construct one (1) single family home to be sold to
1 qualified first time homeowners at 1420 Cherry Ave
RESOLUTION NO. R- 2015 -129, A RESOLUTION approving, and authorizing the City
manager to execute, an agreement with Yakima Habitat for Humanity for expenditure of
' $45,000 in HOME funds for purchase of lot and construction of single - family home for
sale to qualified first -time home buyer, at 1420 Cherry Ave., Yakima.
1 C. Resolution accepting and authorizing the City of Yakima's 2016 assessment
from the Yakima Valley Conference of Govemments
RESOLUTION NO. R- 2015 -130 A RESOLUTION accepting the 2016 Yakima Valley
1 Page 2 of 6
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Conference of Governments Budget and authorizing the City of Yakima's 2016
assessment.
D. Resolution authorizing a grant agreement with the Washington State Office of
' Public Defense to support indigent defense expenses
RESOLUTION NO. R- 2015 -131, A RESOLUTION ratifying and approving the City
1 Manager's execution of a grant agreement between the City of Yakima and the
Washington State Office of Public Defense accepting the terms and conditions for the
receipt of a 2016 Grant.
E. Resolution authorizing an interlocal agreement with the Yakima School District
No. 7 for School Resource Officers for the 2015 -2016 school year
1 RESOLUTION NO. R- 2015 -132, A RESOLUTION authorizing the City Manager of the
City of Yakima to execute an Interlocal School Resource Officer Agreement with Yakima
School District No. 7 for the continuation of the school resource officer program during the
1 2015 -2016 school year
F. Resolution approving amendment to an agreement with the Humane Society of
' Central Washington, of up to $45,000 from Law & Justice Capital Fund to help
defray costs of acquisition by Humane Society of vehicle to provide mobile
animal control services
1 RESOLUTION NO. R- 2015 -133, A RESOLUTION authorizing the City manager to execute
and administer an amendment revising the agreement between the Humane Society of
Central Washington and the City of Yakima for animal control services and acquisition of a
vehicle to enhance such services.
G. Ordinance amending YMC 9.50.085, Parking in the Right of Way to clarify the
1 conditions for enforcement
ORDINANCE NO. 2015-030, AN ORDINANCE of the City of Yakima related to traffic and
' parking, and amending Section 9.50.085 of the Yakima Municipal Code.
H. Resolution authorizing a Memorandum of Understanding and Engagement with
Mid - Columbia Fisheries Enhancement Group for the City Wastewater Treatment
1 Plant Flood Plain Restoration Project
RESOLUTION NO. R- 2015 -134, A RESOLUTION authorizing the City Manager to execute
' a Memorandum of Understanding and Engagement between the City and the Mid -
Columbia Fisheries Enhancement Group (MCFEG) authorizing MCFEC to prepare and
assist in the implementation of a Flood Plain Restoration Plan for the City Wastewater
' Treatment Plant Flood Plain Restoration Project.
I. Resolution authorizing a Memorandum of Understanding and Engagement with
Mid - Columbia Fisheries Enhancement Group for the City Wastewater Treatment
1 Plant Riparian Restoration Project
RESOLUTION NO. R- 2015 -135, A RESOLUTION authorizing the City Manager to execute
' a Memorandum of Understanding and Engagement between the City and the Mid -
Columbia Fisheries Enhancement Group (MCFEG) authorizing MCFEC to prepare and
assist in the implementation of a Riparian Planting Plan for the City Wastewater Treatment
1 Plant Riparian Restoration Project.
1 Page 3 of 6
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6. Audience Participation
Tom Allen, non -City resident, believes some houses on the demolition list could be
rehabbed. He also thanked City Manager O'Rourke for everything he has done for the City.
'
Tony Courcy, City resident, asked about a parking ordinance.
Y , ry
1 Christy Brock, City resident, feels her right to a speedy trial has been violated. City
Attorney Cutter stated the City adheres to the 6th amendment rights.
1 Joey Anderson, City resident, stated many people are upset with the severance contract
for the City Manager and that he needs to go.
' Sandy Belzer, stated she believes collective bargaining meetings should be open to the
public.
' Maria Bosworth, stated she disagrees with the Council's decision to keep the City Manager
and feels the Council's actions don't reflect what the citizens want.
PUBLIC HEARINGS
7. Public hearing and resolution to consider citizen comments on the proposed 2016 Annual
1 Action Plan for Community Development Block Grant (CDBG) and HOME Fund Programs
Archie Matthews, ONDS Manager, explained that the public notice requirements for this
' hearing have not been met. The notice issue will be corrected so the item will be
considered at the December 1, 2015, Council meeting.
' Mayor Cawley opened the public hearing and, with no one coming forward to speak,
closed the hearing.
CITY MANAGER REPORTS
8. Resolution authorizing annual renewal of the City Manager's authority to resolve and settle
any claims against or by the City of Yakima in an amount of $100,000 or Tess, and to
execute all documents necessary to the resolution or settlement of such claims
1 Council Member Lover believes this should be reduced to $50,000.
MOTION: Lover moved to make this a budget policy issue. The motion died for lack of a
second.
RESOLUTION NO. R- 2015 -136, A RESOLUTION authorizing annual renewal of the City
' Manager's authority to resolve and settle any claims against or by the City of Yakima in an
amount of $100,000 or Tess, and to execute all documents necessary to the resolution or
settlement of such claims.
Following Council discussion,
MOTION: Coffey moved and Adkison seconded to adopt the resolution. The
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1 motion carried by a 5 -1 vote, Lover voting no and Ensey absent
9. 2016 Preliminary Budget Presentation
' City Manager O'Rourke briefed Council on the 2016 preliminary budget.
1 10. Resolution authorizing City Manager separation agreement
City Manager O'Rourke stated this item should be withdrawn from the agenda, as based
upon his contract a written notice of resignation is required, and he has not and will not do
1 that.
MOTION: Ensey moved and Coffey seconded to terminate the City Manager effective
1 immediately for cause.
MOTION: Ensey moved and Coffey seconded to amend the motion to terminate the City
1 Manager without cause. The motion failed by a 6 -1 vote, with Ensey voting yes.
ORDINANCES
1 11. First reading of an ordinance amending the 2015 budget and making appropriations from
Unappropriated Fund Balances within various Funds for expenditure during 2015 (no
action required; second reading on November 17, 2015)
Finance and Budget Director Epperson briefed Council on the item, noting this is a first
reading only and will be brought back for a second reading at the November 17,
1 2015, Council meeting.
AN ORDINANCE amending the 2015 budget for the City of Yakima; and making
' appropriations from Unappropriated Fund Balances within various funds for expenditure
during 2015 for various purposes described in the attached Schedule.
12. First reading of an ordinance authorizing a Limited Tax General Obligation Bond, not to
exceed $5,000,000, to finance the acquisition and improvements to a soccer /multi -use
sports campus (second reading November 17, 2015)
1 Finance and Budget Director Epperson briefed Council on the ordinance, noting this is a
first reading only and will be brought back for a second reading at the November 17,
2015, Council meeting.
' AN ORDINANCE OF THE CITY COUNCIL OF THE City of Yakima, Washington,
authorizing the issuance and sale of a LIMITED TAX GENERAL OBLIGATION Bond of
' the CITY in the principal amount of NOT TO EXCEED $5,000,000 to finance costs
RELATED TO acquiring, designing, constructing and improving a SOCCER/multi -use
sports CAMPUS AND OTHER PARK PROJECTS in the city; providing the form of the
1 bond; AND authorizing the sale of the bond TO CASHMERE VALLEY BANK.
13. Ordinance amending Title 4, Health and Sanitation, Chapter 4.16 Relating to 2015 Refuse
' Rates and General House Keeping revisions for clarification and efficiency purposes
Loretta Zammarchi, Refuse and Recycling Manager, briefed the Council on the request for
a rate increase.
1 Page 5 of 6
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1 City Resident Jim Scoggins spoke about recycling and the proposed rate increase.
Following Council discussion,
I The City Clerk read the ordinance by title only.
I ORDINANCE NO. 2015-031, AN ORDINANCE relating to health and sanitation; revising
various refuse rates, fees and charges; adjusting various refuse rates, fees and charges;
and amending Sections 4.16.010; 4.16.070; 4.16.080; 4.16.140; and 4.16.150 of the
I Yakima Municipal Code accordingly.
MOTION: Adkison moved and Dittmar seconded to pass the ordinance.The motion
1 carried by a 5 -1 vote, Lover voting no and Ensey absent.
14. Other Business
I 15. Adjournment
Motion: Ettl moved and Dittmar seconded to adjourn to a Council Study Session
I on November 10, 2015 at 10 a.m. in the Council Chambers at City Hall. The motion
carried by unanimous vote, Ensey absent. The meeting adjoumed at 8:03 p.m.
I CERTIFICATION
READ AND CERTIFIED ACCURATE BY
I COUNCIL MEMBER DATE
1
COUNCIL MEMBER DATE
I
ATTEST:
1
I CITY CLERK MAYOR
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' CERTIFICATE
1, SONYA CLAAR TEE, City Clerk of the City of Yakima, Washington (the "City "), do
hereby certify that the attached is a true and correct copy of the minutes of the November 17,
2015 regular meeting of the City Council which reflects the second reading and final passage of
Ordinance No. 2015 -033.
' Dated as of this 22nd day of December, 2015.
S4 4 a Claar Tee, City ' lerks **- �y
City of Yakima, Washi y gt6ti / -.1 / : 4
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I YAKIMACITY COUNCIL
November 17, 2015
City Hall — Council Chambers
1 6 p.m. Business Meeting; 6:30 p.m. Public Hearings
1 BUSINESS MEETING
1. Roll Call
1 Council: Mayor Micah Cawley, presiding, Assistant Mayor Kathy Coffey, Council Members
Maureen Adkison, Tom Dittmar, Rick Ensey, Dave Ettl and Bill Lover
1 Staff: City Manager O'Rourke, City Attorney Cutter and Acting City Clerk Stephens
2. Pledge of Allegiance
1 Mayor Cawley led the Pledge of Allegiance.
3. Open Discussions for the Good of the Order
1 A. Presentations / Recognitions / Introductions
i. Recognition of 25 Years of Service for Katy Ybarra
1 Brad Coughenour, 911 / Suncom Manager, recognized Katy Ybarra for 25 years of service
to the City of Yakima.
I ii. World Aids Day
Mayor Cawley proclaimed World Aids Day for December 1, 2015. John and Kelly Penfold
I accepted the proclamation.
B. Appointments to Boards, Commissions and Council Committees
I i. Council Nominating Committee recommendations for appointment
I MOTION: Dittmar moved and Adkison seconded to approve the
recommendations. The motion carried by unanimous vote.
I 4. Council Reports
A. Quarterly update from Dave Fonfara, the Yakima Planning Commission Chair to
the City Council
I Mayor Cawley noted Chairman Fonfara was not available to comment on the report;
however, the report is included in the packet for review.
I 5. Consent Agenda
1 Page 1 of 7
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1 Mayor Cawley referred to the items placed on the Consent Agenda, questioning whether
there were any additions or deletions from Council members or citizens present. There
were no changes. The City Clerk read the Consent Agenda items, including resolutions
1 and ordinances, by title. (Items on the Consent Agenda are handled under one motion
without further discussion —see motion directly below.)
' MOTION: Ettl moved and Adkison seconded to approve the consent agenda. The
motion carried by unanimous vote.
' A. 3rd Quarter 2015 Treasury Report
B. Set December 1, 2015 as the date for an Open Record Public Hearing for the
2015 Text Amendments to the Yakima Urban Area Zoning Ordinance
C. Set date of December 8, 2015, for the Closed Record Public Hearing on the
' Preliminary Plat of Rainier Court, Justin Hellem / Columbia Ridge Homes
developers
' D. Set date of December 8, 2015, for the Closed Record Public Hearing on the
Preliminary Plat of Summit View, Rich Hochrein / Summit Crest Construction
' E. Resolution setting dates of December 1, 2015 and December 7, 2015, for
Public Hearings to review the Yakima Planning Commission's recommendation
on nine (9) Comprehensive Plan Amendments
1 RESOLUTION NO. R- 2015 -137, A RESOLUTION setting time for six Public Hearings
before the City Council on December 1, 2015, and setting time for three Public Hearings
' before City Council on December 7, 2015; regarding applications for the 2015 Annual
Comprehensive Plan Amendments and concurrent application requests for rezones.
F. Resolution authorizing the execution of a 5 -year Interlocal Agreement with
1 Yakima County for purchase and the joint use of a Mass Notification System
RESOLUTION NO. R- 2015 -138, A RESOLUTION authorizing the City Manager to
' execute and administer an intergovemmental service agreement between Yakima County
(County) and City of Yakima (City) for the joint use of a Mass Notification System.
G. Resolution authorizing an Master Interlocal Agreement with Yakima County
1 which updates and continues to provide a management structure for growth
within the City's Urban Growth Area
' RESOLUTION NO. R- 2015 -139, A RESOLUTION authorizing the City Manager to execute
a Master Interlocal Agreement between the City of Yakima and Yakima County which
updates and continues to provide a management structure for growth and development
that coordinated d t the goals and polices of the Growth Management Act f
GI IQl is fool U�I IQled al lU meets IGC J l i
the y varo and policies of the Growth a i wi u � v.
development occurring within the City's Urban Growth Area.
1 H. Resolution approving three locations for cold weather shelters in the City of
Yakima
RESOLUTION NO. R- 2015 -140, A RESOLUTION authorizing and directing the Yakima
1 Community Development Department to identify and implement a policy regarding
1 Page 2 of 7
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I temporary emergency cold weather shelters in the City of Yakima, and providing that such
policy shall be valid only from November 18, 2015 through March 15, 2016
I. Resolution authorizing a letter of agreement clarifying post - retirement VEBA
I contribution language with the Yakima Police Management Unit represented by
Teamsters Local #760
1 RESOLUTION NO. R- 2015 -141, A RESOLUTION authorizing a Letter of Agreement
between the Yakima Police Management Unit represented by Teamsters Local No. 760
and the City to correct a non - compliant provision of the previously adopted Collective
1 Bargaining Agreement effective January 1, 2015 through December 31, 2018.
J. Resolution concerning City of Yakima Management Group pay and
I compensation, cancelling the annual Management Group employee's pay and
compensation adjustment provided by YMC 2.20.116 for management
employee compensation, effective for the calendar year 2016, as provided in
I YMC 2.20.116 (C)
RESOLUTION NO. R- 2015 -142, A RESOLUTION concerning City of Yakima
Management Group pay and compensation, cancelling the annual Management Group
I employee's pay and compensation adjustment provided by YMC 2.20.116 for
management employee compensation, effective for the calendar year 2016, as provided
in YMC 2.20.116 (C).
I K. Resolution authorizing the City Manager to grant a 2.5% adjustment in base pay
for non - represented City employees in 2016
RESOLUTION NO. R- 2015 -143, A RESOLUTION authorizing the City Manager to grant a
2.5% adjustment in base pay for the Non - represented Employee Group in 2016.
I L. Second reading of an ordinance amending the 2015 budget and making
appropriations from Unappropriated Fund Balances within various Funds for
expenditure during 2015 (First reading on November 3, 2015)
I ORDINANCE NO. 2015-032, AN ORDINANCE amending the 2015 budget for the City of
Yakima; and making appropriations from Unappropriated Fund Balances within various
I funds for expenditure during 2015 for various purposes described in the attached
Schedule.
M. Second reading of an ordinance authorizing a Limited Tax General Obligation
I Bond, not to exceed $5,000,000, to finance the acquisition and improvements
to a soccer /multi -use sports campus (First reading November 3, 2015)
I ORDINANCE NO. 2015-033, AN ORDINANCE of the City Council of the City of Yakima,
Washington, authorizing the issuance and sale of a Limited Tax General Obligation Bond
of the City in the principal amount of not to exceed $5,000,000 to finance costs related
I to acquiring, designing. constructing and improving a soccer /multi -use sports campus and
other park projects in the city; providing the form of the bond; and authorizing the sale of
the bond to Cashmere Valley Bank.
I 6. Audience Participation
Bill Duerr, City resident, talked about the Code of Ethics voted on by Council in 2009. He
I feels several Council members have violated the Code over the last couple of years and
1 Page 3 of 7
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should be held accountable by a Committee.
Tom Allen, non -City resident, expressed his disagreement with Mr. Duerr and thanked
' Council members and City Manager O'Rourke for their service. He also thanked Codes
Employee Glen Denman for responding to his questions.
Shawn Niles, Pastor of Dad's House, thanked Council members and City Manager
' O'Rourke for making Yakima a better place to live.
Paula Zambrano, City resident, through an interpreter, asked Council to consider
mandating an increase in the minimum wage to $15 per hour within the City limits.
Joey Anderson, City resident, asked about the special meeting regarding Mr. O'Rourke's
1 separation agreement.
Maria Campos, urged Council to consider increasing the minimum wage in Yakima to $15
per hour.
Jose Lopez, City resident, through an interpreter, asked Council to consider an increase in
the minimum wage to $15 per hour within the City limits.
Bev Luby Bartz, City resident, spoke against the proposed neighborhood associations.
She believes this would be a barrier between the residents and City Council.
Janet urged Council to consider a $15 minimum wage proposal.
t Rev. Willie Pride, City resident, thanked Council members for all they have done for the
City of Yakima. He also spoke in support of increasing the minimum wage to $15 per hour.
1 Lupe Sanchez, City resident, spoke in support of increasing the minimum wage to $15 per
hour.
PUBLIC HEARINGS
' 7. Continued public hearing to consider citizen comments on the proposed 2016 Annual
Action Plan for Community Development Block Grant (CDBG) and HOME Fund Programs
Archie Matthews, ONDS Manager, briefed Council on the issue.
Mayor Cawley opened the public hearing and, with no one coming forward to speak,
' closed the hearing.
Mr. Matthews stated this item will be back on the December 1, 2015, agenda for another
t public hearing and action.
8. First public hearing on the proposed 2016 Revenue and Expenditure Budget for the
City of Yakima
1 City Manager O'Rourke briefed Council members on the proposed budget.
Mayor Cawley opened the public hearing.
' Page 4 of 7
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John Cooper, CEO Yakima Valley Tourism, noted they have Committee Members from the
Lodging Tax Advisory Committee in attendance and reported on their last meeting and
' how it impacts the budget.
Finance Director Epperson noted this item will be back on the December 1, 2015,
meeting for another public hearing.
9. Public hearing pertaining to Ad Valorem Taxes to be levied for collection in Fiscal Year
2016
Finance Director Epperson briefed Council members on the ordinances.
' Mayor Cawley opened the public hearing and, with no one coming forward to speak,
closed the hearing.
The City Clerk read the ordinance by title only.
A: ORDINANCE NO. 2015-034, AN ORDINANCE relating to the annual property tax levy;
' declaring the City Council's intent to increase the City's 2016 regular levy up to 100.25%
along with new construction, annexation, refunds and growth in state - assessed property
values from the amount levied the previous year.
' MOTION: Adkison moved and EttI seconded to pass the ordinance. The motion requires
a supermajority vote; therefore, the motion failed by a 4 -3 vote with Dittmar, Ensey and
1 Lover voting no.
Finance Director Epperson recommended a .25 percent increase, which still requires a
1 supermajority vote to set the levy.
MOTION: Cawley moved and Ettl seconded to amend the ordinance by increasing
1 the levy by 100.25 %. The motion carried by a unanimous vote.
The City Clerk read the ordinance by title only.
1 B: ORDINANCE NO. 2015-035, AN ORDINANCE fixing and levying the amount of ad
valorem taxes necessary to balance estimated revenue with estimated expenditures for
1 the 2016 Budget for the City of Yakima.
Mayor Cawley noted this may be amended to make the .25 percent change.
' MOTION: Dittmar moved and EttI seconded to passed the ordinance. The motion
carried by a unanimous vote.
CITY MANAGER REPORTS
10. Amend North First Street Project Design and Phasing
' City Manager O'Rourke and Chief Engineer Sheffield briefed Council on the issue noting
they are dividing Phase 2 into two separate phases.
1
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1 11. Status Report on the Final Draft Yakima Bike Master Plan
Community Development Director Davenport briefed Council on the Bike Master Plan.
1 Robert Strader, City resident, noted he appreciated the idea of buffered bike lanes;
however, he is concerned about the lack of bike lanes North of I Street leading to the
1 freeway.
Marla Powers urged Council to keep bike lanes for phase 2 and 3 as bicylists want to
utilize roads, not just the Greenway.
Chad Dow stated they serve a lot of Thanksgiving meals at the Union Gospel Mission and
many of those people have only bicycles for transportation. He stated the area is very busy
with bikes and they need a safe way to travel.
Phil Hogue, City resident, spoke in support of the phasing and protected bike lanes but
urged Council to reconsider bike lanes on North First Street and postpone the decision
until the transportation plan is completed.
' Tony Courcy, City resident, stated he asks questions and doesn't get answers. He also
complained about the crosswalk built and taken down by St. Joesph's.
Ms. Davenport stated there are choices for riding bikes on North First. One choice is to
turn on I Street and take an alternate route or from N. Street to the freeway, which will have
a two foot margin, not a bicycle lane, which provides some area for people to ride. Another
option is the sidewalk. The only place you cannot ride a bike on a sidewalk is in the
downtown area.
12. Resolution authorizing letter of support for passage and funding of the Yakima River Basin
Water Enhancement Project Phase III Act of 2015 (S. 1694)
Dave Brown, Water and Irrigation Manager, briefed Council on the item.
' The City Clerk read the resolution by title only.
RESOLUTION NO. R- 2014 -144, A RESOLUTION authorizing the City Manager to execute
the attached letter of support for passage and funding of the Yakima River Basin Water
Enhancement Project Phase III Act of 2015 (S. 1694).
MOTION: Ettl moved and Adkison seconded to adopt the resolution. The motion
carried by unanimous vote.
13. Other Business
Council Member Ettl asked if it is possible for the Council to mandate a $15 minimum
wage. City Attorney ted are some cities in the St of Washington where a
Cutter Cutter � no ww there there v W
minimum wage was increased by a vote of the people. He is not certain if this can be done
councilmatically. Mr. Ettl asked if the Council could place this on the ballot for consideration
' or if it had to be done by a petition. Mr. Cutter noted he would need to do further research
on the issue.
' 14. Adjournment
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Motion: Ensey moved and Coffey seconded to adjourn to the next Council Business
Meeting on December 1, 2015, at 6 p.m. in the Council Chambers at City Hall. The
motion carried by unanimous vote. The meeting adjourned at 7:49 p.m.
1
CERTIFICATION
1 READ AND CERTIFIED ACCURATE BY
COUNCIL MEMBER DATE
1
1 COUNCIL MEMBER DATE
ATTEST:
1
1 CITY CLERK MAYOR
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_ _
Affidavit of Publication
I STATE OF WASHINGTON, )
COUNTY OF YAKIMA )
I in first duly sworn on oath deposes and says that she /he is the Accounting
Debbie Martin, being y p y g
I clerk of Yakima Herald- Republic, Inc., a daily newspaper. Said newspaper is a legal newspaper
approved by the Superior Court of the State of Washington for Yakima County under an order
made and entered on the 13th day of February, 1968, and it is now and has been for more than
I six months prior to the date of publication hereinafter referred to, published in the English lan-
guage continually as a daily newspaper in Yakima, Yakima County, Washington. Said newspa-
per is now and has been during all of said time printed in an office maintained at the aforesaid
u place of publication of said newspaper.
That the annexed is a true copy of a:
1 CITY OF YAKIMA CERTIFICATION OF ORDI
it was published in regular issues (and not in supplement form) of said newspaper once each
day and for a period of 1 times, the first insertion being on 11/20/2015 and the last insertion be-
ing on 11/20/2015
I Yakima Herald- Republic 11/20/15
YakimaHerald.com 11/20/15
I and the such newspaper was regularly distributed to its subscribers during all of the said period.
That the full amount of the fee charged for the foregoing publication is the sum of $105.75
I /Le OW/ - 7 . 2 AA
Accounting Clerk
1
1 \\\111111111���
,\ \, A S P M D,R
��`' '• N0TARy' S „, % Sworn to before me this c_:274‘ day of, 2015
in
1 _ , _
vi uomm. Expires _
_
CA D4/05/2017 : . �. / ✓ iii •A
”; >:. ' b VBL \O • � Notary Public in and for the /
• ... • • ` \\. State of Washington,
////°,1( ��WAN residing at Yakima
1
CITY OF YAKIMA
' CERTIFICATION OF
ORDINANCES ENACTMENT
Ordinance Nos. 2015 -032 and
2015 -035 were passed by the
' City Council of the City of Yaki-
ma, Washington on the 17th
day of November, 2015. The
summaries of the ordinances
are below. A copy of the full text
' of any ordinance is available
online or will be mailed upon
request by phoning 575 -6000.
' ORDINANCE NO. 2015 -032
amending the 2015 budget for
the City of Yakima; and making
appropriations from Unappro-
priated Fund Balances within
' various funds for expenditure
during 2015 for various purpos-
es described in the attached
Schedule.
' ORDINANCE NO. 2015 -033 of
the City Council of the City of
Yakima, Washington, authoriz-
ing the issuance and sale of a
Limited Tax General Obligation
' Bond of the City in the princi-
pal amount of not to exceed
$5,000,000 to finance costs
related to acquiring, designing,
constructing and improving a
soccer /multi -use sports cam-
pus and other park projects in
the city; providing the form of
the bond; and authorizing the
' sale of the bond to Cashmere
Valley Bank.
ORDINANCE NO. 2015 -034
relating to the annual property
I tax levy; declaring the City
Council's intent to increase
the City's 2016 regular levy
up to 100.25% along with new
construction, annexation,
' refunds and growth in state -
assessed property values from
the amount levied the previous
year.
' ORDINANCE NO. 2015 -035
fixing and levying the amount
of ad valorem taxes necessary
to balance estimated revenue
' with estimated expenditures for
the 2016 Budget for the City of
Yakima.
(600448) November 20, 2015
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Courtesy of Yakima Herald- Republic
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Man
pp** '17171
1 November 3, 2015
Honorable City Council
City of Yakima
' 129 North 2"d Street
Yakima, WA 98901
Honorable Council Members,
•
Thank you for the opportunity to provide an offer to purchase the City of Yakima,
Y Plm tY p p t5' ma,
Washington Limited Tax General Obligation Bond, 2015 (the "Bond "). Cashmere
Valley Bank, Cashmere, Washington is pleased to offer to purchase the Bond under the
following terms, subject to credit approval. Capitalized terms not defined herein have the
meaning given in the authorizing ordinance of the Bond anticipated to be adopted on
1 November 17, 2015 (the "Bond Ordinance ").
1, Issuer: City of Yakima, Washington (the "City ").
1 2. Amount: $5,000,000
3. Form: Fully registered, single instrument, taxable limited tax general
' obligation bond issued by the City and purchased by the Bank at
private sale.
1 4. Purpose: Proceeds will be used to acquire, design, construct, and improve a
soccer /multi -use sports campus in the City as part of the project
with SOZO Sports, and other park and recreation capital projects,
1 as further described in the Bond Ordinance, and to pay the costs of
issuance of the Bond.
5. Bond Terms:
1 a) Interest Rate: The outstanding principal amount of the Bond shall bear
interest at a rate equal to the Interest Rate Swap (defined below), plus
' 1.75 %. The Interest Rate will be recalculated on each Reset Date (defined
herein). Currently, this would equal (1.55% + 1.75 %) = 3.30 %. Interest
1
1
' City of Yakima
LTGO Bond 2015 (Taxable)
11472015
Page 2
' on the principal amount of the Bond:. shall be calculated per annum on.a
30/36(Ibasis.
' The Interest. Rate Swap means the most recent monthly average interest
rate swap for a 5-year term, as published by 'the Federal Reserve's Board
of Governor's 11.15 -Statistical Release,, available here:
htrp;/ fwww:federalreseive.gov /releaseS%H 1.5 /datl.htm
' The Reset Date means December, l,. 2020, = December 1', 2025, and
December 1, 2030.
b) Terms: The Bond shall mature .on December 1, 2035 the "Maturity
Date "). Principal of and .interest on the ; Bond shall be due in
' approximately equal semiannual installments.of $200,000 ,due .June and
December 1, beginning June .1, 2016, to and - including the Maturity Date
or earlier prepayment. The final ' payment of ,principal of and interest on
the Bond, whether at the Maturity Date or- earlier prepayment, shall be in
' an amount equal to the remaining principal and interest due onthe Bond.
The amortization schedule describing the payments of principal and
interest for the initial five years of the Bond will'be provided by the Bank
by the closing date of the Bond. At each Reset Date, the Bank will
provide an updated amortization schedule to the City reflecting the
recalculated interest rate and the payments off, principal and interest to the
' next Reset Date.
c) Transferability: The Bank will hold the Bond with no intent to sell or
transfer. The Bond may be transferred as provided in the Bond Ordinance.
1 d) &coat. The Bond is a limited tax general obligation of the City. For as
long as the Bond is outstanding, the City irrevocably pledges to. include in
' its budget and levy taxes annually within the constitutional 'and statutory
tax limitations provided by law without a vote of the electors of the City .
on all of the taxable property within the City in an amount sufficient,
together with other money,legally available.andtabe used:therefor, to.pay
when due the principal of and interest on The Bond. The full faith, credit
and resources of the City are pledged .irrevocably for the annual - levy and
collection of those taxes and the ;prompt `payment of that principal And
interest.
6. Prepayment:
Upon 15 days written notice, the -City may prepay :the Bond, in whole or in.
part on any business day, with no prepayment penalty. Any prepayments
1
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City of Yakima
LTGO Bond 2015 (Taxable)
' 11 -3 -2015
Page 3
shall be applied first to accrued and unpaid . interest and then applied to
reduce the outstanding principal amount of the Bond.
' 7. Fees: The Bank will not charge .a loan fee for -the purchase of the Bond. All
costs of issuing the Bond are the responsibility of the City.
' 8. Additional Terms: The Bond documents shall be in the standard forms
customarily required by the Bank for municipal funding and will include
additional terms and conditions not .discussed above. The City will provide its
annual financial report to the Bank during the period the Bond is outstanding and
' held by the Bank. At the date of closing the Bond, the financial condition and
credit of the City and all other features of this transaction will be as represented to
the Bank without material adverse change. In the event of adverse material
' changes in the credit worthiness of the City, this offer will terminate upon notice
by the Bank. This offer is non - assignable by the City. This offer supersedes any
priorr commitments, offers, or agreements written or oral, concerning this
fmancing and can only te modified in writing. .
'
9. Acceptance: This offer is not binding unless the City returns a signed copy of this
letter to the Bank prior to the close of business on November 24, 2015, at which
1 time this offer will expire upon notice by the Bank.
10. Closing: The Bond is anticipated to close on or about. December 21, 2015. If after
1 acceptance, the Bond has not closed by December 31, 2015, this commitment will
expire without notice.
ORAL AGREEMENTS OR ORAL COMMITMENTS TO LOAN MONEY, EXTEND
' CREDIT, OR TO FORBEAR FROM ENFORCING REPAYMENT OF A DEBT ARE
NOT ENFORCEABLE UNDER WASHINGTON LAW.
' Thank you for the opportunity to work with the City and its finance team.
Sincerel:
'tm l inker
' AVP, Municipal Lending & Investments
CASHMERE VALLEY BANK
1
1
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City of Yakima
LTGO Bond 2015 (Taxable)
' 11 -3 -2015
Page 4
1 Acknowledged and accepted this. .7 - day of November, 2015
CITY OF YAKIMA, WASHINGTON
1 By : e " ")
Cindy Win: ector of Finance and Budget
1 Cc: Deanna Gregory, Pacifica Law Group
1
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' SIGNATURE IDENTIFICATION AND NONLITIGATION CERTIFICATE
We, MICAH CAWLEY and SONYA CLAAR TEE, the duly chosen, qualified and
acting Mayor and City Clerk, respectively, of the City of Yakima, Washington (the "City "), do
' hereby certify that the signatures appearing on the following- described Limited Tax General
Obligation Bond, 2015 (Taxable) (the "Bond ") of the City are true and correct facsimiles of our
signatures.
' The Bond is issued in fully registered form in the total principal amount of $5,000,000, is
dated the date of its delivery to Cashmere Valley Bank, as purchaser, and is payable as set forth
in Ordinance No. 2015 -033, passed by the City Council on November 17, 2015 (the "Bond
Ordinance ").
WE FURTHER CERTIFY that there is no controversy or litigation pending, or to the
best of our knowledge threatened, affecting the issuance and delivery of the Bond, the levy and
collection of taxes to pay the principal thereof and interest thereon, the validity of the Bond, the
' corporate existence or boundaries of the City, or the title of the present officers of the City to
their respective offices, and that no authority or proceedings for the issuance of the Bond has or
have been repealed, revoked or rescinded.
1 Dated as of this 22nd day of December, 2015.
Signatures Title
1 // Mayor
Gls
YAV % City Clerk
I
1
1
1
1
1
1
1
STATE OF WASHINGTON )
1 ss.
COUNTY OF YAKIMA )
1 On this 49 4 d ay of December, 2015, before me, the undersigned, a Notary Public in
and for the State of Washington, duly commissioned and sworn, personally appeared MICAH
CAWLEY, to me known to be the Mayor of the City of Yakima, Washington, described in and
I who executed the within and foregoing instrument, and acknowledged to me that he signed said
instrument as his free and voluntary act and deed for the uses and purposes therein mentioned.
.tii.,. ✓Y.. �. J
_._.. KAARREALLYN 4.0 I / ,x..-f, ,---
Notary Public Notary P ,lic
State of �l�'Eicton �► r �� t I v V1
( My Comma;; Aires
April 11 2016 [Printed Name]
My appointment expires: IT /�
— // - (,)Ol to
1
1
STATE OF WASHINGTON )
I COUNTY OF YAKIMA ) ss. )
On this �a day of December, 2015, before me, the undersigned, a Notary Public in
1 and for the State of Washington, duly commissioned and sworn, personally appeared SONYA
CLAAR TEE, to me known to be the City Clerk of the City of Yakima, Washington, described
in and who executed the within and foregoing instrument, and acknowledged to me that she
I signed said instrument as her free and voluntary act and deed for the uses and purposes therein
mentioned.
KAARRE ALLYN
Notary Public ! / ,/�4,' -t_
Ai
State of Washington ) ��
t „
1
` , My Co 'ss�o� Expires N otary u
12016 ! C r fe l yl�I
;,. [Printed Name]
My appointment expires: 1- (— / / — 46/ '
1
1
1
1 -2-
15
1 CERTIFICATE OF MANUAL SIGNATURE
STATE OF WASHINGTON )
I ) ss.
COUNTY OF YAKIMA • )
1 I, the undersigned affiant, being first duly sworn, on oath depose and say:
My name is Micah Cawley
1 rftkv wtow
I have been duly chosen and am qualified and acting as
Mayor
pllr wwMl�l
for City of Yakima. Washington
1
The signature appearing above is my true manual signature.
1 This affidavit is made to comply with Ch. 86, Wash. Sess. Laws of 1969.
( 4i i lature
SUBSCRIBED AND SWORN TO before me this J Of Zulu , 2013.
STATE OF WASHINGTON
MICHELLE L WI.T8SY I � Now
NOTARY PUBLIC to 4€-td L - Lv /1-77 4,
' COMMISSION EXPIRES my commission expires �' — af1J
MARCH 142014
(Use this space kw Marisa slaaviseil)
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1 CERTIFICATE OF MANUAL SIGNATURE
( T 72‘,.(_
STATE OF WASHINGTON )
1 ) ss.
COUNTY OF YAICIMA )
1 I, the undersigned affiant, being first duly sworn, on oath depose and say:
My name is Sonya Claar Tee
1 wars)
I have been duly chosen and am qualified and acting as
1 Citv Clerk
«,.kw
for Citv of Yakima. Washington
OEM qfillal *OW
The signature appearing above is my true manual signature.
1 This affidavit is made to comply with Ch. 86, Wash. Sess. Laws of 1969.
Signature
1 u , 2013.
S UBSCRIBED AND SWORN TO before me this � of
1 STATE OF WASHINGTON r
MICHELLE L WILTSEY V ..1�..��� .
NOTARY PUBLIC N ue �..
1 COMMISSION EXPIRE$ • ' " t E L • W l (i7"� ,1
MARai is, 2014 My commission expires . —/S - if'
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CERTIFICATE OF MAILING
1 I, Kristin Patterson the duly chosen
(PRINT OR TYPE NAME)
qualified and acting Paralegal
(POSmON)
1 of the law firm
of Pacifica Law Group LLP
1
1 DO HEREBY CERTIFY that on the 27th day of September, 2013 I mailed to the Secretary of State of
the State of Washington, postage prepaid, a certificate of manual signature in the form attached hereto
1 executed by the following officials:
1 Name Position
1 Micah Cawley Mayor, City of Yakima, Washington
Sonya Claar Tee City Clerk, City of Yakima, Washington
1
1 * * * **
1 •
Dated /In
11i.
(SIGNATURE)
16
December 22, 2015
1
City of Yakima
1 Yakima, Washington
Re: City of Yakima, Washington
1 Limited Tax General Obligation Bond, 2015 (Taxable) (the "Bond ")
Ladies and Gentlemen:
' The undersigned, on behalf of Cashmere Valley Bank (the "Purchaser "), hereby
acknowledges receipt of the above - referenced Bond dated December 22, 2015, originally issued
1 in the principal amount of $5,000,000. The undersigned acknowledges that the Bond was issued
pursuant to Ordinance No. 2015 -033 of the City of Yakima, Washington (the "City ") passed by
the City Council on November 17, 2015 (the "Bond Ordinance "). Proceeds of the Bond will be
1 used to finance costs related to acquiring, designing, constructing and improving a soccer /multi-
use sports campus and other park projects in the City and to pay costs of issuance for the Bond.
Capitalized terms used in this letter have the meanings given such terms in the Bond Ordinance.
' In connection with the acquisition of the Bond by the Purchaser, the Purchaser hereby
makes the following representations upon which you may rely:
' 1. The Purchaser is an institutional investor that is an accredited investor (as defined
under paragraph 1, 2, 3, or 7 of Rule 501(a) of the Securities Act of 1933 (the "Act ")).
2. The Purchaser has sufficient knowledge and experience in financial and business
matters, including purchase and ownership of governmental obligations, to be able to evaluate
the risks and merits of the loan represented by its purchase of the Bond, and its net worth and
available assets are such that it is able to bear the economic risk of its purchase of the Bond. The
Purchaser is able to bear the economic risk of the investment represented by its purchase of the
Bond.
3. The Purchaser understands that the Bond is a limited tax general obligation of the
City. Pursuant to the Bond Ordinance the City has irrevocably covenanted and agreed 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 the Bond as the same shall become due. The full faith, credit and resources of the
City have been irrevocably pledged for the annual levy and collection of such taxes and the
' prompt payment of such principal and interest. The Purchaser acknowledges that no property,
debt service reserves, credit enhancement, or other security has been pledged to the payment of
principal of and interest on the Bond. The Purchaser acknowledges that it does not have a
1 security interest in particular revenues or assets of the City.
1400 112th Avenue SE, Suite 100 • Bellevue, Washington 98004 -6997 • (425) 688 -3935 • Toll Free 1 (866) 252 -2265 • Fax (425) 688 -3937
1
4. The Purchaser understands that no official statement, prospectus, offering circular
or other offering statement containing material information with respect to the City or the Bond
' is being issued, that the Bond is unrated, and that, with due diligence, it has made its own inquiry
and analysis with respect to the City, the Bond and the security therefor, and other material
factors affecting the security for and payment of the Bond, and is relying solely on such inquiry
1 and analysis in its purchase of the Bond.
5. The Purchaser acknowledges that it has either been supplied with or been given
t access to information, including financial statements and other financial information, to which a
reasonable investor would attach significance in making investment decisions, and the Purchaser
has had the opportunity to ask questions and receive answers from knowledgeable individuals
' and organizations concerning the City, the use of proceeds of the Bond and the security therefor
so that, as a reasonable investor, the Purchaser has been able to make its decision to purchase the
Bond.
' 6. The Purchaser acknowledges that it is purchasing the Bond for investment for its
own account and not with a present view toward resale or the distribution thereof, in that it does
' not now intend to resell or otherwise dispose of all or any part of its interests in the Bond. The
Purchaser acknowledges that the Bond shall not be transferable without the consent of the City
unless (a) the Purchaser's corporate name is changed and the transfer is necessary to reflect such
U change or (b) the transferee is a successor in interest of the Purchaser by means of a corporate
merger, an exchange of stock, or a sale of assets. The Purchaser also acknowledges that any
transfer of the Bond which fails to comply with this provision and the transfer limitations on the
Bond contained in the Bond Ordinance shall be null and void.
7. The Purchaser understands that the Bond is an exempted security under the Act
' and that registration is not legally required as of the date hereof; and further understands that the
Bond (a) is not being registered or otherwise qualified for sale under the "Blue Sky" laws and
regulations of any state, (b) will not be listed in any stock or other securities exchange, (c) will
' not carry a rating from any rating agency and (d) will be issued only in denominations of
$5,000,000, which may not be readily marketable.
' 8. The Purchaser has had the opportunity to consult with and be advised by legal
counsel as to the significance of this letter and it has satisfied itself that the Bond is a lawful
investment for it under all applicable laws.
' Very truly yours,
CASHMERE V ( ?BANK
B
1 /
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Name: l
1 Title: h1 /14-.f 644. fite, !r �r(., 4
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II ,ofr" S TATE OF WASHINGTON 906 Columbia Street SW
>, P.O. Box 42525
= =�f � ;� DEPARTMENT OF COMMERCE Olympia, WA 98504-2525
..: • n Phone: 360/725 -5021
I •"S'z "hu_ -' Fax: 360/586 -4162
1 BOND 101 REPORT FORM
Issue ID: 1512 -043 Date Submitted: 12/28/2015
Issuer .lnforniatlori: .
Name of Issuer: City of Yakima
I Address of Issuer: 129 North Second Street
Yakima, WA 98901
Issue Type: City /Town
I Principle User, if different than
issuer:
Counties in which the entity using Yakima
the bond proceeds is located: ❑ Various Counties - More than four
I Statewide ;
Issue Type-and Title .
Was this bond voter approved? ❑ Yes • No
1 Exact title of issue: Limited Tax General Obligation Bond, 2015 (Taxable)
Issue Sale Method: Private Placement
If Competitive Bid, number of bids:
1 Debt Type: GO Bond
Debt Category: Bond
I Series:
New Issue
I Issue Dates ." ,
Dated Date of Issue: 12/22!2015 Issue Closing Date: 12/22/2015
Date of Issue Sale: 11/17/2015 Issue Maturity Date: 12/01/2035 •
' Issue Purpose ' • , , :: .... ... ;, . .
Purpose of Proceeds: Acquire, design, construct and improve a soccer /multi -use Sports campus and other park
projects of the City
I Purpose Type: Other
Is this a Bond Cap issuance? ❑ Yes • No
If yes:
I Bond Cap Use Category:
Project Title:
Bond Cap Amount:
. , , ...
Par. Value;and- Interest :Rates "=
Tax - Exempt Par Value: $0.00 Net Tax - Exempt Interest Rate: 0% 0 Variable
Taxable par Value: $5,000,000.00 Net Taxable Interest Rate: • Variable
I Total Par Value: $5,000,000.00
Discount: $0.00 Premium: $0.00
Issue Costs .
Printed on 12/28/2015 12:22:02 PM Page 1 of 3
1
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1..''.54',% STATE OF WASHINGTON 906 Columbia Street SW
P.O. Box 42525
=,ir *'- 4' *' DEPARTMENT OF COMMERCE Oly mpia, WA 98504 -2525
414 • u Phone: 360/725 -5021
't „; r'
I � Fax: 360/586 -4162
Underlying security that supports the taxes
I debt (e.g. taxes or other revenue
streams
Gross Underwriting Spread: $0.00 ❑ Estimate
I Underwriting Spread per $1,000: $0.00
$9,0
Bond Counsel Fee: $9,000.00 ❑ Estimate
Legal /Underwriter's Counsel Fee: $0.00 ❑ Estimate
I Adminsitrative /Commission Fee: $0.00 ❑ Estimate
Feasiblity Study Cost: $0.00 ❑ Estimate
I Rating Agency Fee: $0.00 ❑ Estimate
Trustee Fee: $0.00 ❑ Estimate
Credit Enhancement: $0.00 ❑ Estimate
1 Escrow Costs: $0.00 ❑ Estimate
Financial Advisor Fee: $0.00 ❑ Estimate
I Bond Insurance: $0.00 ❑ Estimate
Printing, inc. Office Statement: $0.00 ❑ Estimate
Out -of -State Travel: $0.00 ❑ Estimate
I Miscellaneous: $0.00 ❑ Estimate
I Name of Financial Advisor: N/A
Name of Bond Counsel: Pacifica Law Group LLP
Name Of Lead Underwiter(s): Cashmere Valley Bank
I
Name Of Company Insuring Bond: N/A
Name of Bond Registrar: City of Yakima
I Name of Trustee: N/A
_ .:.
on ,a mgs =!;' ;;
I Standard & Poor's: N/A
Moody's: N/A
Fitch: N/A
:,', "Atta
Are bond covenants available? • Yes ❑ No
I Is an Official Statement available? ❑ Yes • No
ReporterrContact Inform
Vi i%:..•- .. _. _ .'- � - _..__.' :: t_..'..� ' -1 Ve . . .... ..... ... ,. .. .. - —_. _ :. '—' ..
Reporter Name: Kristin Patterson
1 Title: Paralegal
Affiliation: Pacifica Law Group LLP
I Printed on 12/28/2015 12:22:02 PM Page 2 of 3
1
1 STATE OF WASHINGTON 906 Columbia Street SW
' 9. P.O. Box 42525 lympia, WA 98504 -2525
DEPARTMENT OF COMMERCE O
ya Phone: 360 /725 -5021
1 -14 ",eea e Fax: 360/586 -4162
Address: 1191 2nd Ave, Suite 2000
1
Email: Seattle, WA 98101 -1758
kristin .patterson @pacificalawgroup.com
Phone: (206) 245-1704
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1 Printed on 12/28/2015 12:22:02 PM Page 3 of 3
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I r - n .
•
.. nn .."............."...."----..--1
1 < UNITED STATES OF AMERICA
I < f
e i $
'�,_,� .,R 1 $5,000,000 1 >
1 CITY OF YAKIMA
/ LIMITED TAX GENERAL OBLIGATION BOND, 2015 (TAXABLE)
I / INTEREST RATE: VARIABLE, AS DESCRIBED BELOW
1 < MATURITY DATE: DECEMBER 1, 2035
REGISTERED OWNER: CASHMERE VALLEY BANK
PRINCIPAL AMOUNT: FIVE MILLION AND NO /100 DOLLARS
The City of Yakima, 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 /
I / Amount identified above. This bond shall bear interest at a rate equal to the Interest Rate Swap, plus 1.75% \
(the "Interest Rate "). Interest Rate Swap is defined as the most recent monthly average interest rate swap for a five - /
year term, as published by the Federal Reserve's Board of Governor's H.15 Statistical Release. The Interest Rate
e shall be adjusted every fifth year on the Reset Date pursuant to the hereinafter defined Bond Ordinance, and shall
I < remain in effect until but not including the next Reset Date. 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 in approximately equal semiannual installments of $200,000 due on
December 1 and June 1, beginning June 1, 2016, to and including the Maturity Date, pursuant to the payment
I schedule provided by the Registered Owner after each Reset Date. The final payment of principal of and interest on
the Bond, whether at the Maturity Date or earlier prepayment, shall be in an amount equal to the remaining principal
and interest due on the Bond.
Both principal of and interest on this bond shall be payable in lawful money of the United States of
I < 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
I <
Registered Owner shall surrender this bond for cancellation at the office of the Bond Registrar in accordance with
Ordinance No. 2015 -033 of the City (the "Bond Ordinance "). Capitalized terms used in this bond have the
meanings given such terms in the Bond Ordinance.
< This bond is issued pursuant to the Bond Ordinance, to finance the costs of acquiring, developing,
I constructing, and improving a soccer /multi -use sports complex and other park and recreation capital projects in the
City and to pay costs of issuance.
The City may prepay this bond as provided in the Bond Ordinance.
I < 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.
I < 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
I < available therefor, to pay the principal of and interest on this bond as the same shall become due. The full faith,
I
I-vv
Page l of 2
` v Nei v NO vvvvv vvvvvvv Nee v -1
1
1 F.v� \�". ^ ^ ^ ^ ^ ^^ J ^ ^ ^ ^^ ^^
I 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. Any proceeds of this bond not expended on the Project or costs
of issuance shall be pledged to payment of this bond and deposited in the Bond Fund for such purpose.
I 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.
I 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. \
I \ 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
I constitutional, statutory or other limitation upon the amount of bonded indebtedness that the City may incur. ,
` IN WITNESS WHEREOF, the City of Yakima, 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 22nd day of December, 2015.
CITY OF YAKIMA, WASHINGTON
' `
By
Mayor ,
ATTEST: y N °1JN�
!\ City Clerk ''
= i
REGISTRATION CERTIFICATE
1 This bond is registered in the name of the Registered Owner on the books of the City, in the office of the
Director of Finance and Budget of the City (the "Bond Registrar "), as to both principal and interest, as noted in the
I < 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 Name and Address of Signature of
Registration Registered Owner Bond Registrar
1 December 22, 2015 Cashmere Valley Bank
1
117 Aplets Way Director of Finance and Budget
Cashmere, WA 98815
/ Page 2of2
1 ` 1 .- vvvvv VVVVVVVTVNV'VVV 11
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I CERTIFICATE OF DELIVERY
I, CINDY EPPERSON, Director of Finance and Budget of the City of Yakima,
I Washington (the "City "), do hereby certify that on this date the City delivered to Cashmere
1 Valley Bank, as the purchaser (the "Purchaser "), the City's Limited Tax General Obligation
Bond, 2015 (Taxable) in the aggregate principal amount of $5,000,000.
I Dated this 22nd day of December, 2015.
1 CITY OF YAKIMA, WASHINGTON
1 By &-(411-, C r N,
Cincy Epperson
1 Director of Finance and Budget
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RECEIPT FOR BOND
Cashmere Valley Bank (the "Purchaser ") hereby acknowledges receipt of the City of
Yakima, Washington, Limited Tax General Obligation Bond, 2015 (Taxable), in the aggregate
1 principal amount of $5,000,000.
Dated this 22nd day of December, 2015.
CASHME V '(LEY BANK
By ( 1�--
Name r e.. _ / K /
1 Title '''IC - t i ae. P =c. 7
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imioNloimPar
miimpor
December 8, 2015
' Ms. Cindy Epperson
Director of Finance and Budget
1 City of Yakima, Washington
RATE AGREEMENT
1 Dear Ms. Epperson,
The City of Yakima, Washington (the "City ") passed Ordinance No. 2015 -033 on
1 November 17, 2015 (the "Bond Ordinance ") authorizing the issuance and sale of the City
of Yakima, Washington Limited Tax General Obligation Bond, 2015 (the "Bond ") to
Cashmere Valley Bank (the "Bank "). It is anticipated that the Bond will be issued on or
1 about December 22, 2015 (the "Closing Date ").
Per the Bond Ordinance, the Interest Rate is defined as the Interest Rate Swap
' (currently 1.60 %) plus 1.75 %. Therefore, be it hereby agreed that the Bond shall bear
interest at the fixed rate of (1.60% + 1.75 %) = 3.35% per annum from the Closing Date
to the Reset Date (defined in the Bond Ordinance).
1 Thank you for the opportunity to work with the City and its finance team.
Sincerely,
1 L7,6z
' Jim Tinker
Assistant Vice President
Cashmere Valley Bank
1 --1-) Acknowledged and acce this o Q day of December, 2015
CITY OF YAKIMA, WASHINGTON
1 B
§* (1\ ' °-av
Cindy Ep erson, Director of Finance and Budget
' Cc: Deanna Gregory, Pacifica Law Group
1
1
I M 111111 1111111 IIIIII 1.11 1111111 MI NM MI OM OM
CITY OF YAKIMA, WASHINGTON
LIMITED TAX GENERAL OBLIGATION BOND, 2015
Dated Date: 12/22/2015
Par: $5,000,000
DEBT SERVICE SCHEDULE
Period Ending Beginning Outstanding Principal Principal Rate Interest Ending Outstanding Principal Cash Flow
12/22/2015 5,000,000.00 5,000,000.00
6/1/2016 5,000,000.00 (126,020.83) 3.35% (73,979.17) 4,873,979.17 (200,000.00)
12/1/2016 4,873,979.17 (118,360.85) 3.35% (81,639.15) 4,755,618.32 (200,000.00)
6/1/2017 4,755,618.32 (120,343.39) 3.35% (79,656.61) 4,635,274.93 (200,000.00)
12/1/2017 4,635,274.93 (122,359.14) 3.35% (77,640.86) 4,512,915.79 (200,000.00)
6/1/2018 4,512,915.79 (124,408.66) 3.35% (75,591.34) 4,388,507.13 (200,000.00)
12/1/2018 4,388,507.13 (126,492.51) 3.35% (73,507.49) 4,262,014.62 (200,000.00)
6/1/2019 4,262,014.62 (128,611.26) 3.35% (71,388.74) 4,133,403.36 (200,000.00)
12/1/2019 4,133,403.36 (130,765.49) 3.35% (69,234.51) 4,002,637.87 (200,000.00)
6/1/2020 4,002,637.87 (132,955.82) 3.35% (67,044.18) 3,869,682.05 (200,000.00)
12/1/2020 3,869,682.05 (135,182.83) 3.35% (64,817.17) 3,734,499.22 (200,000.00)
The debt service schedule will be recalculated on each Reset Date, in accordance the Ordinance No. 2015 -033 of the City of Yakima.
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RECEIPT FOR BOND PROCEEDS
I 1, CINDY EPPERSON, Director of Finance and Budget of the City of Yakima,
1 Washington (the "City "), do hereby certify that on this date the City delivered to Cashmere
Valley Bank, as the purchaser (the "Purchaser "), the City's Limited Tax General Obligation
I Bond, 2015 (Taxable) (the "Bond "). 1 FURTHER CERTIFY that at the time of such delivery 1
1 received on behalf of the City payment for such Bond from the Purchaser as follows:
Sources of Funds:
I Bond Principal Amount $ 5,000,000.00
Total Sources $ 5,000,000.00
Uses of Funds:
t Deposit to Project Fund $ 5,000,000.00
Total Uses $ 5,000,000.00
I Dated this 22nd day of December, 2015.
CITY OF YAKIMA, WASHINGTON
1
I - CuRea4 --1
Cindy Epperson
Director of Finance and Budget
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FINAL CLOSING MEMORANDUM
1
DATE: December 8, 2015
1 TO: Ms. Cindy Epperson, City of Yakima
Ms. Tara Lewis, City of Yakima
1 Mr. Jeff Cutter, City of Yakima
Ms. Jeanne Thompson, City of Yakima
Ms. Robin Dukart, City of Yakima
1 Ms. Deanna Gregory, Pacifica Law Group, LLP
Ms. Stacey Lewis, Pacifica Law Group, LLP
Ms. Kristin Patterson, Pacifica Law Group, LLP
1 Mr. Ron Olsen, Cashmere Valley Bank
FROM: Jim Tinker, Cashmere Valley Bank
1 RE: Closing Instructions for the City of Yakima $5,000,000 Limited Tax General Obligation Bond,
2015 (Taxable) (the "Bond ")
Closing Information
The closing of the Bond will occur on Tuesday, December 22, 2015 (the "Closing Date ") and be completed
1 by email notification from Pacifica Law Group, LLP (the "Bond Counsel ") to the City of Yakima (the
"Issuer "), and Cashmere Valley Bank (the "Purchaser ") and all together defined as the Financing Team. The
Financing Team will have signed the necessary legal instruments in advance of the Closing Date and
presented them to their required legal counter - parties. The Bank requires receipt of the executed Bond
1
Ordinance, the Bond, and the Legal Opinion prior to the Closing Date (pdf copies are acceptable).
1 Summary of Funds
The amount due on the Closing Date for the Bond is as follows:
1 Par Amount of the Bond: $5,000,000.00
Total Sources of Funds $5,000,000.00
1 1
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Distribution of Funds
The disposition of proceeds for the Bond is as follows:
Purchaser Wire to the Issuer:
Deposit to the Project Fund $4,991,000.00
' Deposit to the Project Fund — Cost of Issuance $9,000.00
Total Wire to the Issuer $5,000,000.00
Total Distribution of Funds $5,000,000.00
1
' CLOSING INSTRUCTIONS:
On Tuesday, December 22, 2015, the Purchaser will purchase the Bond and provide funds to the Issuer
with the following wire transfer:
1 Wire transfer to the Issuer, representing the proceeds of the Bond, for deposit into the Issuer's
Project Fund:
1 To: Key Bank
ABA No.: 125000574
' Acct Name:
Account No.: City of Yakima Checking
90458372
Re: City of Yakima LTGO Bond 2015 Proceeds
' Amount: $5,000,000
Upon confirmation of the receipt of the wire transfer by the Issuer, Pacifica Law Group LLP will provide
' notice that the transaction has closed and the Bond and legal opinion are released to the Purchaser.
BOND DEBT SERVICE
' Payments on the Bond will be made by the City, as Bond Registrar. Semiannual installments of principal
and interest are due in equal amounts of $200,000 each June 1 and December 1, beginning June 1, 2016.
Billing notices will be mailed to the Bond Registrar 30 days in advance. The Bank prefers debt service
' payments to be made via wire as follows:
Wire transfer instructions for the Purchaser:
' To: Cashmere Valley Bank
' ABA No.: 125104603
Account No.: 120000781
Re: City of Yakima LTGO 2015
1 2
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COST OF ISSUANCE
1 Due to: Amount
Pacifica Law Group LLP (Bond Counsel) $9,000.00
Total Costs of Issuance $9,000.00
Bond Counsel will provide an invoice to the Issuer for the amount due.
PURCHASER CONTACT INFORMATION:
' Corporate Address: Cashmere Valley Bank
P.O. Box G
Cashmere, WA 98815
1 Municipal Department: Ron Olsen Jim Tinker
Senior Vice President Assistant Vice President
Cashmere Valley Bank Cashmere Valley Bank
1400 112t Ave SE, Suite 100 1400 112th Ave SE, Suite 100
Bellevue, WA 98004 Bellevue, WA 98004
425 - 688 -3936 425 - 688 -3935
1 rolsen@cashmerevalleybank.com itinker Pcashmerevalleybank.com
Please use the Municipal Department contacts for communications regarding the Note.
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T 206.2451700
PAC I F I CA 1191 2nd Avenue, Suite 2000
Seattle, WA 98101 -3404
LAW GROUP pacificalawgroup.com
1 December 22, 2015
City of Yakima
Yakima, Washington
' Cashmere Valley Bank
Cashmere, Washington
Re: City of Yakima, Washington
1 Limited Tax General Obligation Bond, 2015 (Taxable) $5,000,000
Ladies and Gentlemen:
We have acted as bond counsel to the City of Yakima, Washington (the "City "), and have
examined a certified transcript of all of the proceedings taken in the matter of the issuance by the
City of its Limited Tax General Obligation Bond, 2015 (Taxable), in the aggregate principal
amount of $5,000,000 (the "Bond "). The Bond is issued pursuant to Ordinance No. 2015 -033 of
' the City Council, passed November 17, 2015 (the "Bond Ordinance " ), to provide a portion of the
funds necessary to finance costs related to acquiring, designing, constructing and improving a
soccer /multi -use sports campus and other park projects in the City and to pay costs of issuance
' for the Bond. Capitalized terms not otherwise defined herein shall have the meanings given such
terms in the Bond Ordinance.
The Bond may be prepaid prior to maturity as provided in the Bond Ordinance.
Regarding questions of fact material to our opinion, we have relied on representations of
' the City in the Bond Ordinance and in the certified proceedings and on other certifications of
public officials and others furnished to us without undertaking to verify the same by independent
investigation.
Based on the foregoing, we are of the opinion that, under existing law:
1. The Bond has been legally issued and constitutes a valid and binding general
obligation of the City, except to the extent that the enforcement of the rights and remedies of the
holders and owners of the Bond may be limited by laws relating to bankruptcy, insolvency,
' moratorium, reorganization or other similar laws of general application affecting the rights of
creditors, by the application of equitable principles and the exercise of judicial discretion.
1
City of Yakima, Washington
Cashmere Valley Bank
December 22, 2015
Page 2
The Bond Ordinance is a legal, valid and binding obligation of the City, has been
duly adopted and is enforceable in accordance with its terms, except to the extent that
enforcement may be limited by laws relating to bankruptcy, insolvency, moratorium,
reorganization or other similar laws of general application affecting the rights of creditors, by the
application of equitable principles and the exercise of judicial discretion.
3. Both principal of and interest on the Bond is payable out of annual levies of ad
valorem taxes to be made upon all of the taxable property within the City permitted to be levied
' without a vote of the electorate in the amounts which, together with other available funds
including lodging taxes available for this purpose, will be sufficient to pay such principal and
interest as the same shall become due.
4. Interest on the Bond is not excludable from gross income for federal income tax
purposes.
Except as expressly stated above, we express no opinion regarding any other federal or
state income tax consequences of acquiring, carrying, owning or disposing of the Bond. The
Registered Owner of the Bond should consult its tax advisors regarding the applicability of any
collateral tax consequences of owning the Bond, which may include original issue discount,
original issue premium, purchase at a market discount or at a premium, taxation upon sale,
redemption or other disposition, and various withholding requirements.
This opinion is given as of the date hereof, and we assume no obligation to update, revise
' or supplement this opinion to reflect any facts or circumstances that may hereafter come to our
attention or any changes in law that may hereafter occur.
Very truly yours,
PACIFICA LAW GROUP LLP
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BUSINESS OF THE CITY COUNCIL
YAKIMA, WASHINGTON
AGENDA STATEMENT
Item No. S.M.
For Meeting of: November 17, 2015
ITEM TITLE: Second reading of an ordinance authorizing a Limited Tax General
Obligation Bond, not to exceed $5,000,000, to finance the acquisition
and improvements to a soccer /multi -use sports campus (First reading
November 3, 2015)
SUBMITTED BY: Cindy Epperson, Director of Finance & Budget
Tara Lewis, Financial Services Manager
SUMMARY EXPLANATION:
At their April 7, 2015 meeting, City Council entered into an agreement with SOZO Sports of Central
Washington to collaborate in the design, development and operation of a world -class Yakima Sports
Complex. The April 7 agreement only contemplated the purchase of about 42 acres, with the City providing
$4.1 million for the purchase and development. Councilman Lover, with the support of the City Council,
requested that the City and SOZO consider budgeting funds for additional adjacent property to meet the long
term needs of the sports complex. Subsequent to this action, SOZO is proposing to purchase an additional
60 acres. Council agreed to the concept, and currently there is a tentative agreement under consideration
between the parties as to how the cost will be shared. Because the price of the second acreage has not yet
been agreed upon, we set the language in the bond ordinance at "not to exceed" $5 million, which leaves up
to $900,000 available to accomplish the purchase of the 2nd 40 acres. If the purchase price is less than the
$900,000, then the City can use the remaining bond proceeds for other park capital needs.
Prior to issuing bonded debt on the City's behalf it is necessary, per section 12 of the City Charter, that the
Council approve the terms and form of the bond by Ordinance. Historically, the City has issued municipal
bonds to accomplish a project like this. However, in current market conditions bank financing is a better
option for us, and the City was able to obtain favorable debt terms. Bank financing has much lower "up
front" costs, as there is not an Official Statement to prepare, and there are no underwriting fee. Bond
Counsel is still necessary, but since there is considerably less risk and fewer disclosure requirements, the fee
will be 40% less than a traditional bond issue. Another cost usually imposed is a loan origination fee which
the bank has waived for the City. Overall, the cost of bank financing will save the City about $40,000 in
direct costs and uses much fewer staff resources.
The enclosed Bond Ordinance will authorize staff to take all necessary steps to secure bank financing in the
form of a Limited Tax General Obligation bond (i.e. councilmanic, not voted) in an amount not to exceed
$5M, for 20 years, with three interest rate resets at each 5 year mark, at an initial interest rate of 3.3% with an
annual debt service of approximately $400,000. The enclosed Memorandum details the process and the
decision points leading to the Bond Ordinance contained herein.
Resolution: Ordinance: X
Other (Specify):
Contract: Contract Term:
Start Date: End Date:
Item Budgeted: Yes Amount: $5,000,000
Funding Source/Fiscal Impact: Parks and Recreation Capital Fund
Strategic Priority: Improve the Built Environment
Insurance Required? No
Mail to:
Phone:
APPROVED FOR
SUBMITTAL: City Manager
RECOMMENDATION:
Pass Ordinance after the second reading on November 17, 2015.
ATTACHMENTS:
Description Upload Date Type
D Memo re bond process 10/26/2015 CAmr Memo
D bond ordnance 10/20015 Ordnance
D f A Cashmere 2015 Bond Purchase Offer 10/23/2015 Ordnance
Memorandum
To: The Honorable Mayor and Members of City Council
From: Cindy Epperson, Director of Finance and Budget
Tara Lewis, Financial Services Manager
Date: 10/26/2015
Re: Yakima Sports Complex Financing
In addressing the strategic priority Built Environment, the citizens authorized a City Charter
amendment to spend an additional $750,000 per year on Parks capital improvements. At their
April 7, 2015 meeting, City Council entered into an agreement with SOZO Sports of Central
Washington to collaborate in the design, development and operation of a world -class Yakima
Sports Complex. The April 7 agreement only contemplated the purchase of about 42 acres, with
the City providing $4.1 million for the purchase and development. Subsequent to this action,
SOZO is proposing to purchase approximately an additional 60 acres. Council agreed to the
concept, and currently there is a tentative agreement under consideration between the parties as
to how the cost will be shared. Because the price of the second acreage has not been agreed
upon, we set the language in the bond ordinance at "not to exceed" $5 million, which leaves up
to $900,000 available to accomplish the purchase of the 2 40 acres. If the purchase price is less
than the $900,000, then the City can use the remaining bond proceeds for other park and
recreation capital projects.
In order to issue tax - exempt bonds, the IRS have a number of requirements whereby we would
have to avoid excessive private use for the life of the bond. Because there is a "private party"
(i.e. SOZO) using and benefitting from the transaction, it would have been burdensome to verify
compliance with these rules. For that reason, we chose to go with a taxable Limited Tax General
Obligation (LTGO) Bond. Debt service of $400,000 was budgeted for 2016 with the anticipation
of budgeting approximately $400,000 per year over a 20 year amortization. A taxable bond
maintains maximum flexibility for the business decisions regarding the property.
Several types of financing tools are available for Washington cities. Whenever the City needs to
finance a project, an analysis is done to determine the most effective method to use. Cost of the
financing, risk and repayment terms are key factors that affect the debt - vehicle best suited to the
City's needs.
Generally, the City can self -fund a project through reserves and /or interfund loans, issue bonds
on the market or privately, participate in a State bond issue or obtain a loan from a banking
institution. For equipment, capital leases and /or corporate financing are also used from time to
time, although these tend to be more costly.
The repayment terms anticipated in the Budget exclude interfund loans as state law requires such
loans to be fairly short in duration (recommendation of 3 years or less). Participation in a State
bond issue as was done for our recent purchases of new police cars and fire apparatus is also not
an option in this case because the State will not finance infrastructure (they require an asset they
can foreclose and sell in the event of default).
The remaining options are bond issue or bank financing. A bond issue is very expensive by
nature. The City must employ an underwriter as well as bond counsel to work through the
complex process of offering bonds for sale on the public bond market. SEC regulation drives
much of that cost. For our $5 million, the cost of underwriter and bond counsel are estimated to
be between $40,000 and $50,000. Interest rates on a public long term issue are likely to be fairly
high -- in the neighborhood of 5 %. These costs combine to make bond financing unattractive for
this sort of project where other alternatives are available to us.
Bank financing is available with a bit of a twist. The bank offers a loan for which the City issues
a single bond at a much more desirable interest rate for a short (5 year) term. At the end of
that term, the bank is allowed to reset the rate to accommodate market changes that have
occurred. The reset is based on the U.S. Treasury bill rates using a predetermined formula equal
to the Interest Rate Swap for a 5 -year term, as published by the Federal Reserve's Board of
Governor's H.15 Statistical Release plus 1.75 %. The City will be exposed to only three reset
dates over the entire life of the debt in the 20 year amortization period.
Bank financing is generally much less expensive than issuing bonds for sale. The bank treats the
financing as a loan and the City issues a single bond to be held by the bank for the duration of
the financing term. While bond counsel is still a necessary component, due to the substantially
lower risk of a bank financing, the fee for bond counsel is approximately 40% lower. The use of
an underwriter is not necessary. We estimate that the City will save about $40,000 in direct costs
as well as use fewer staff resources, as preparation of an official statement is time - consuming.
In the process we approached several banks about our financing needs. Cashmere Valley Bank
was flexible and willing to work with our Bond Counsel to revise language and terms to meet the
City's needs. The Cashmere Valley Bank proposal was attractive, both in terms of cost and risk
for several reasons. The Bank has waived their standard loan origination fee. It has waived the
bank counsel fees in that the bank is willing to rely on City's Bond Counsel for legal issues. It
also agreed not to include a "put" option in the offer, which would have given the bank the
option to discontinue financing at any of the three reset dates, rather than resetting the rate for the
next five year term. They also agreed to allow the City to pay off or "call" the bond at any time
during the term of the agreement with only 15 days written notice, with no prepayment penalty.
These factors distinguished Cashmere Valley Bank as the clear choice for this Project financing.