CB 121103 — Version 1 https://webapi.legistar.com/v1/seattle/Matters/16509/Texts/17826 CITY OF SEATTLE ORDINANCE __________________ COUNCIL BILL __________________ ..title AN ORDINANCE relating to contracting indebtedness; authorizing and providing for the issuance and sale of limited tax general obligation bonds to pay or reimburse all or part of the costs of various elements of the City's capital improvement program and for other City purposes approved by ordinance and to pay the costs of issuance of the bonds; providing parameters for the bond sale terms including conditions, covenants, and other sale terms; amending Ordinance 123480, as previously amended by Ordinances 124341, 124637, and 124924; Ordinance 124053, as previously amended by Ordinances 124146 and 124341; Ordinance 124341, as previously amended by Ordinance 126938; Ordinance 124637, as previously amended by Ordinance 126938; Ordinance 124924, as previously amended by Ordinances 125986 and 126938; and Ordinance 125197, as previously amended by Ordinances 125456, 125715, and 125986; and ratifying and confirming certain prior acts. ..body WHEREAS, The City of Seattle, Washington (the "City") has determined that it is in its best interest that the capital projects described in this ordinance (the "Projects") be financed by the issuance of limited tax general obligation bonds of the City in a principal amount not to exceed $38.21 million; and WHEREAS, RCW 39.36.020 authorizes the City to incur indebtedness without the assent of the voters of the City so long as such indebtedness does not result in a total nonvoted indebtedness of the City in excess of 1.5 percent of the value of taxable property within the City as computed in accordance with RCW 39.36.030; NOW, THEREFORE, BE IT ORDAINED BY THE CITY OF SEATTLE AS FOLLOWS: Section 1. Definitions. In this ordinance, the following capitalized terms shall have the meanings set forth in this section. "Authorized Denomination" means $5,000 or any integral multiple thereof within a maturity of a Series, or such other minimum authorized denominations as may be specified in the applicable Bond Documents. "Beneficial Owner" means, with regard to a Bond, the owner of any beneficial interest in that Bond. "Bond" means one of the limited tax general obligation bonds issued pursuant to this ordinance. "Bond Counsel" means a lawyer or a firm of lawyers, selected by the City, of nationally recognized standing in matters pertaining to bonds issued by states and their political subdivisions. "Bond Documents" means, with respect to any Series of the Bonds, (a) this ordinance (including any amendatory or supplemental ordinances); (b) the authenticated Bond form; and (c) the written agreement(s) setting forth the Bond sale terms and additional terms, conditions, or covenants pursuant to which such Bond was issued and sold, as set forth in any one or more of the following (if any): (i) a sale resolution, (ii) a Bond Purchase Contract, (iii) a Bond indenture, fiscal agent or paying agent agreement, or the State fiscal agency contract, and (iv) a direct purchase or continuing covenant agreement. "Bond Purchase Contract" means a written offer to purchase a Series of the Bonds pursuant to certain Bond Sale Terms, which offer has been accepted by the City in accordance with this ordinance. In the case of a competitive sale, the Purchaser's bid for a Series, together with the official notice of sale and Pricing Certificate confirming the Bond Sale Terms, shall comprise the Bond Purchase Contract. "Bond Redemption Fund" means the City's General Bond Interest and Redemption Fund, created by Ordinance 112112 and established and to be used for the payment of the principal of and premium, if any, and interest on the Bonds. "Bond Register" means the books or records maintained by the Bond Registrar for the purpose of registering ownership of each Bond. "Bond Registrar" means the Fiscal Agent (unless the Director of Finance appoints a different person to act as bond registrar with respect to a particular Series), or any successor bond registrar selected in accordance with the System of Registration. "Bond Sale Terms" means the terms and conditions for the sale of a Series of the Bonds approved by the Director of Finance consistent with the parameters set forth in Section 4 of this ordinance, including the amount, date or dates of the Bonds, denominations, interest rate or rates (or mechanism for determining the interest rate or rates), payment dates, final maturity, redemption rights, price, and other terms, conditions, or covenants. In connection with a negotiated sale or private placement, the Bond Sale Terms shall be set forth in a Bond Purchase Contract; in connection with a competitive sale, the Bond Sale Terms shall be set forth in a Pricing Certificate. "Book-Entry Form" means a fully registered form in which physical bond certificates are registered only in the name of the Securities Depository (or its nominee), as Registered Owner, with the physical bond certificates held by and immobilized in the custody of the Securities Depository (or its designee), where the system for recording and identifying the transfer of the ownership interests of the Beneficial Owners in those Bonds is neither maintained by nor the responsibility of the City or the Bond Registrar. "City" means The City of Seattle, Washington. "City Council" means the Seattle City Council of the City, as duly and regularly constituted from time to time. "Code" means the Internal Revenue Code of 1986, or any successor thereto, as amended at any time, and regulations thereunder. "Continuing Disclosure Certificate" means, for each Series sold in an offering subject to federal securities regulations requiring a written undertaking to provide continuing disclosure, a continuing disclosure certificate executed pursuant to Section 14 of this ordinance, in substantially the form attached to this ordinance as Exhibit B. "Director of Finance" or "Director" means the City's Director of Finance or such other officer who succeeds to substantially all of the responsibilities of that office. "DTC" means The Depository Trust Company, New York, New York. "Fiscal Agent" means the fiscal agent of the State, as the same may be designated by the State from time to time, or such other fiscal agent as the City may later appoint. "Government Obligations" means, unless otherwise limited in the Bond Documents for a particular Series of the Bonds, any government obligation as that term is defined in RCW 39.53.010, as amended. "Issue Date" means, with respect to a Bond, the initial date on which that Bond is issued and delivered to the initial Purchaser in exchange for its purchase price. "Letter of Representations" means the Blanket Issuer Letter of Representations between the City and DTC dated October 4, 2006, as amended, or an agreement with a substitute or successor Securities Depository. "MSRB" means the Municipal Securities Rulemaking Board. "Omnibus Refunding Ordinance" means Ordinance 125457, as amended, authorizing the issuance of general obligation refunding bonds, or any future ordinance pursuant to which the Bonds (or any Series of the Bonds) are designated as "refundable bonds." "Owner" means, without distinction, the Registered Owner and the Beneficial Owner of a Bond. "Pricing Certificate" means a certificate executed by the Director of Finance as of the pricing date confirming the Bond Sale Terms for the sale of a Series of the Bonds to the Purchaser of such Series in a competitive sale, in accordance with the parameters set forth in Section 4 of this ordinance. "Projects" means the various elements of the City's capital improvement program identified in Exhibit A to this ordinance. "Purchaser" means the entity or entities selected by the Director of Finance in accordance with this ordinance as underwriter, purchaser, or successful bidder in a sale of any Series of the Bonds. "Rating Agency" means any nationally recognized rating agency then maintaining a rating on a Series of the Bonds at the request of the City. "Record Date" means, unless otherwise defined in the Bond Documents, in the case of each interest or principal payment date, the Bond Registrar's close of business on the 15th day of the month preceding such interest or principal payment date. With regard to redemption of a Bond prior to its maturity, the Record Date shall mean the Bond Registrar's close of business on the day prior to the date on which the Bond Registrar sends the notice of redemption to the Registered Owner(s) of the affected Bonds. "Registered Owner" means, with respect to a Bond, the person in whose name that Bond is registered on the Bond Register. For so long as a Series of the Bonds is in Book-Entry Form under a Letter of Representations, the Registered Owner of such Series shall mean the Securities Depository. "Rule 15c2-12" means Rule 15c2-12 promulgated by the SEC under the Securities Exchange Act of 1934 as amended. "SEC" means the United States Securities and Exchange Commission. "Securities Depository" means DTC, any successor thereto, any substitute securities depository selected by the City, or the nominee of any of the foregoing. Any successor or substitute Securities Depository must be qualified under applicable laws and regulations to provide the services proposed to be provided by it. "Series" means a series of the Bonds issued pursuant to this ordinance. "State" means the State of Washington. "System of Registration" means the system of registration for the City's bonds and other obligations established pursuant to Seattle Municipal Code Chapter 5.10, as amended. "Tax-Advantaged Bond" means any Bond that is designated by the City as a tax-advantaged bond, including tax credit bonds or any other type of special tax designation that is now or in the future available pursuant to the Code, pursuant to which the City is able to obtain a tax credit payment or any other type of tax advantage. "Tax-Exempt Bond" means any Bond the interest on which is intended on the Issue Date to be excludable from gross income for federal income tax purposes. "Taxable Bond" means any Bond the interest on which is not intended, as of the Issue Date, to be excludable from gross income for federal income tax purposes. "Term Bond" means any Bond that is issued subject to mandatory redemption prior to its maturity in periodic mandatory redemption payments in accordance with subsection 7(b) of this ordinance. Section 2. Authorization of Bonds. The City is authorized to borrow money on the credit of the City and issue limited tax general obligation bonds evidencing indebtedness in the maximum principal amount stated in Section 4 of this ordinance to pay or reimburse all or part of the costs of the Projects (which costs may include capitalized interest, if necessary), and to pay the costs of issuance of the Bonds. The Bonds may be issued in one or more Series and may be combined with other general obligation bonds (including refunding bonds) authorized separately. The Bonds shall be designated limited tax general obligation bonds, shall be numbered separately, and shall have any name, year, series, or other labels as deemed necessary or appropriate by the Director of Finance. Section 3. Manner of Sale of Bonds. The Director of Finance may provide for the sale of each Series by competitive sale, negotiated sale, limited offering, or private placement. The Purchaser of each Series shall be chosen through a selection process acceptable to the Director of Finance. The Director is authorized to specify a date and time of sale and a date and time for the delivery of each Series; in the case of a competitive sale, to provide an official notice of sale including bid parameters and other bid requirements and to provide for the use of an electronic bidding mechanism; to provide for and determine matters relating to the forward or delayed delivery of the Bonds, if deemed desirable; and to specify other matters that the Director determines are necessary, appropriate, or desirable in order to carry out the sale of each Series. Each Series must be sold on Bond Sale Terms consistent with the parameters set forth in Section 4 of this ordinance. Section 4. Appointment of Designated Representative; Bond Sale Terms. (a) Designated Representative. The Director of Finance is appointed to serve as the City's designated representative in connection with the issuance and sale of the Bonds in accordance with RCW 39.46.040(2) and this ordinance. (b) Parameters for Bond Sale Terms. The Director of Finance is authorized to approve, on behalf of the City, Bond Sale Terms for the sale of the Bonds in one or more Series and, in connection with each such sale, to execute a Bond Purchase Contract (or, in the case of a competitive sale, a Pricing Certificate) confirming the Bond Sale Terms and such related agreements as may be necessary or desirable, consistent with the following parameters: (i) Maximum Principal Amount. The maximum aggregate principal amount of all Series of the Bonds authorized by this ordinance may not exceed $38.21 million. (ii) Date or Dates. Each Bond shall be dated its Issue Date, as determined by the Director of Finance, which Issue Date may not be later than December 31, 2028. (iii) Denominations. The Bonds shall be issued in Authorized Denominations. (iv) Interest Rate(s). Each Bond shall bear interest from its Issue Date or from the most recent date to which interest has been paid or duly provided, unless otherwise provided in the applicable Bond Documents. One or more rates of interest shall be established for each maturity of each Series of the Bonds, which rate or rates may be fixed or variable. The true interest cost for any fixed rate Series may not exceed a rate of 10 percent per annum. (v) Payment Dates. Interest shall be payable on dates acceptable to the Director of Finance. Principal shall be payable on dates acceptable to the Director, which shall include payment at the maturity of each Bond, payment in mandatory redemption installments applicable to Term Bonds, and other payments as required in accordance with any redemption or tender provisions set forth in the Bond Documents. (vi) Final Maturity. Each Bond shall mature no later than 31 years after its Issue Date. (vii) Redemption Prior to Maturity. The Bond Sale Terms may include redemption provisions, as determined by the Director of Finance, consistent with Section 7 of this ordinance and subject to the following: (A) Optional Redemption. The Director of Finance may designate any Bond as being subject to optional redemption prior to its maturity at such time or times as are acceptable to the Director, consistent with subsection 7(a) of this ordinance. Any Tax-Exempt Bond that is subject to optional redemption prior to maturity must be callable on at least one or more dates occurring not more than 10-1/2 years after the Issue Date. (B) Mandatory Redemption. The Director of Finance may designate any Bond as a Term Bond, subject to mandatory redemption prior to its maturity in mandatory redemption installment payments of principal, consistent with subsection 7(b) of this ordinance. (C) Extraordinary Redemption. The Director of Finance may designate any Bond as subject to extraordinary optional redemption or extraordinary mandatory redemption upon the occurrence of an extraordinary event, as such event or events may be set forth in the applicable Bond Documents, consistent with subsection 7(c) of this ordinance. (viii) Price. The Director of Finance may approve in the Bond Sale Terms an aggregate purchase price for each Series of the Bonds that is, in the Director's judgment, the price that produces the most advantageous borrowing cost for the City for that Series consistent with the parameters set forth herein and in any applicable bid documents. (ix) Other Terms and Conditions. (A) Debt Capacity and Limitations. A Series of the Bonds may not be issued in an amount that would cause the indebtedness of the City to exceed the City's legal debt capacity on the Issue Date of such Series. (B) Expected Life of Capital Facilities. As of the Issue Date of each Series, the Director of Finance must find to the Director's satisfaction that the average expected life of the capital facilities or assets to be financed with the proceeds (or allocable share of proceeds) of that Series exceeds the weighted average maturity of such Series (or share thereof) allocated to financing those capital facilities. (C) Additional Terms, Conditions, and Agreements. The Bond Sale Terms for any Series may provide for bond insurance or for any other credit enhancement as the Director of Finance may find necessary or desirable. The Bond Sale Terms may include such additional terms, conditions, and covenants as may be necessary or desirable, including but not limited to: restrictions on investment of Bond proceeds and pledged funds (including any escrow established for the defeasance of any of the Bonds); provisions for the conversion of interest rate modes; provisions for the reimbursement of a credit enhancement provider; and requirements to give notice to or obtain the consent of a credit enhancement provider. The Director of Finance is authorized to execute, on behalf of the City, such additional certificates and agreements as may be necessary or desirable to reflect such terms, conditions, and covenants. (D) Tax Status of the Bonds. The Director of Finance may designate any Series of the Bonds as Tax-Exempt Bonds, Taxable Bonds, or Tax-Advantaged Bonds, consistent with Section 13 of this ordinance. Section 5. Bond Registrar; Registration and Transfer of Bonds. (a) Registration and Bond Registrar. The Bonds shall be issued only in registered form as to both principal and interest and shall be recorded on the Bond Register. The Fiscal Agent is appointed to act as Bond Registrar for each Series of the Bonds, unless otherwise determined by the Director of Finance. (b) Transfer and Exchange of Bonds. The Bond Registrar shall keep, or cause to be kept, sufficient books for the registration and transfer of the Bonds, which shall be open to inspection by the City at all times. The Bond Register shall contain the name and mailing address of the Registered Owner of each Bond and the principal amount and number of each of the Bonds held by each Registered Owner. The Bond Registrar is authorized, on behalf of the City, to authenticate and deliver Bonds transferred or exchanged in accordance with the provisions of the Bonds and this ordinance, to serve as the City's paying agent for the Bonds and to carry out all of the Bond Registrar's powers and duties under this ordinance and the System of Registration. The Bond Registrar shall be responsible for its representations contained in the Bond Registrar's certificate of authentication on the Bonds. The Bond Registrar may become an Owner of Bonds with the same rights it would have if it were not the Bond Registrar and, to the extent permitted by law, may act as depository for and permit any of its officers or directors to act as members of, or in any other capacity with respect to, any committee formed to protect the rights of Owners. Bonds surrendered to the Bond Registrar may be exchanged for Bonds in any Authorized Denomination of an equal aggregate principal amount and of the same Series, interest rate, and maturity. Bonds may be transferred only if endorsed in the manner provided thereon and surrendered to the Bond Registrar. Any exchange or transfer shall be without cost to an Owner or transferee. The Bond Registrar shall not be obligated to exchange or transfer any Bond during the period between the Record Date and the corresponding interest payment date or principal redemption date. (c) Securities Depository; Book-Entry Form. Unless otherwise determined by the Director of Finance, the Bonds initially shall be issued in Book-Entry Form and registered in the name of the Securities Depository. The Bonds so registered shall be held fully immobilized in Book-Entry Form by the Securities Depository in accordance with the provisions of the Letter of Representations. Neither the City nor the Bond Registrar shall have any responsibility or obligation to participants of the Securities Depository (or the persons for whom they act as nominees) with respect to the Bonds regarding the accuracy of any records maintained by the Securities Depository (or its participants) of any amount in respect of principal of or interest on the Bonds, or any notice that is permitted or required to be given to Registered Owners hereunder (except such notice as is required to be given by the Bond Registrar to the Securities Depository). Registered ownership of a Bond initially held in Book-Entry Form, or any portion thereof, may not be transferred except: (i) to any successor Securities Depository; (ii) to any substitute Securities Depository appointed by the City or such substitute Securities Depository's successor; or (iii) to any person if the Bond is no longer held in Book-Entry Form. Upon the resignation of the Securities Depository from its functions as depository, or upon a determination by the Director of Finance to discontinue utilizing the then-current Securities Depository, the Director may appoint a substitute Securities Depository. If the Securities Depository resigns from its functions as depository and no substitute Securities Depository can be obtained, or if the Director determines not to utilize a Securities Depository, then the Bonds shall no longer be held in Book-Entry Form and ownership may be transferred only as provided in this ordinance. Nothing in this ordinance shall prevent the Bond Sale Terms from providing that a Series of the Bonds shall be issued in certificated form without utilizing a Securities Depository, and that the Bonds of such Series shall be registered as of their Issue Date in the names of the Owners thereof, in which case ownership may be transferred only as provided in this ordinance. (d) Lost or Stolen Bonds. In case any Bond certificate shall be lost, stolen, or destroyed, the Bond Registrar may authenticate and deliver a new Bond or Bonds of like amount, date, tenor, and effect to the Registered Owner(s) thereof upon the Registered Owner(s)' paying the expenses and charges of the City in connection therewith, and upon filing with the Bond Registrar evidence satisfactory to the Bond Registrar that such Bond or Bonds were actually lost, stolen, or destroyed and of Registered Ownership thereof, and upon furnishing the City with indemnity satisfactory to both the City and the Bond Registrar. Section 6. Payment of Bonds. (a) Payment. Principal of and interest on each Bond shall be payable in lawful money of the United States of America on the dates and in the amounts as provided in the Bond Documents applicable to that Series. No Bonds of any Series shall be subject to acceleration under any circumstances. (b) Bonds Held in Book-Entry Form. Principal of and interest on each Bond held in Book-Entry Form shall be payable in the manner set forth in the Letter of Representations. (c) Bonds Not Held in Book-Entry Form. Interest on each Bond not held in Book-Entry Form shall be payable by electronic transfer on the interest payment date, or by check or draft of the Bond Registrar mailed on the interest payment date to the Registered Owner at the address appearing on the Bond Register on the Record Date. The City, however, shall not be required to make electronic transfers except pursuant to a request by a Registered Owner in writing received at least ten days prior to the Record Date and at the sole expense of the Registered Owner. Principal of each Bond not held in Book-Entry Form shall be payable upon presentation and surrender of the Bond by the Registered Owner to the Bond Registrar. Section 7. Redemption and Purchase of Bonds. (a) Optional Redemption. All or some of the Bonds may be subject to redemption prior to their stated maturity dates at the option of the City at the times and on the terms set forth in the applicable Bond Documents. (b) Mandatory Redemption. All or some of the Bonds may be designated as Term Bonds, subject to mandatory redemption in principal installment payments, as set forth in the applicable Bond Documents. If not redeemed or purchased at the City's option prior to maturity, Term Bonds (if any) must be redeemed at a price equal to 100 percent of the principal amount to be redeemed, plus accrued interest, on the dates and in the years and principal amounts set forth in the applicable Bond Documents. If the City optionally redeems or purchases a principal portion of a Term Bond prior to its maturity, the principal amount so redeemed or purchased (irrespective of its redemption or purchase price) shall be credited against the remaining mandatory redemption installment payments for that Term Bond in the manner directed by the Director of Finance. In the absence of direction by the Director, credit shall be allocated to each mandatory redemption installment payment for that Term Bond on a pro rata basis. (c) Extraordinary Redemption. All or some of the Bonds may be subject to extraordinary optional redemption or extraordinary mandatory redemption prior to maturity, upon the occurrence of an extraordinary event, at the prices, in the principal amounts, and on the dates, all as set forth in the applicable Bond Documents. (d) Selection of Bonds for Redemption; Partial Redemption. If fewer than all of the outstanding Bonds of a Series selected for redemption are to be redeemed at the option of the City, the Director of Finance shall select the maturity or maturities to be redeemed. If less than all of the principal amount of a maturity of the selected Series is to be redeemed, if such Series is held in Book-Entry Form, the portion of such maturity to be redeemed shall be selected for redemption by the Securities Depository in accordance with the Letter of Representations. If the Series selected for redemption is not then held in Book-Entry Form, the portion of such maturity to be redeemed shall be selected by the Bond Registrar using such method of random selection as the Bond Registrar shall determine. All or a portion of the principal amount of any Bond that is to be redeemed may be redeemed in any applicable Authorized Denomination. If less than all of the outstanding principal amount of any Bond is redeemed, upon surrender of that Bond to the Bond Registrar there shall be issued to the Registered Owner, without charge, a new Bond (or Bonds, at the option of the Registered Owner) of the same Series, maturity, and interest rate in any Authorized Denomination in the aggregate principal amount to remain outstanding. (e) Purchase. The City reserves the right and option to purchase any or all of the Bonds at any time at any price acceptable to the City plus accrued interest to the date of purchase. Section 8. Notice of Redemption; Rescission of Notice. Unless otherwise set forth in the applicable Bond Documents, the City must cause notice of any intended redemption of Bonds to be given not less than 20 nor more than 60 days prior to the date fixed for redemption by first-class mail, postage prepaid, to the Registered Owner of any Bond to be redeemed at the address appearing on the Bond Register on the Record Date, and the requirements of this sentence shall be deemed to have been fulfilled when notice has been mailed as so provided, whether or not it is actually received by the Owner of any Bond. Interest on Bonds called for redemption shall cease to accrue on the date fixed for redemption unless the Bond or Bonds called are not redeemed when presented pursuant to the call. In the case of an optional or extraordinary optional redemption, the notice may state that the City retains the right to rescind the redemption notice and the related redemption of Bonds by giving a notice of rescission to the affected Registered Owners at any time on or prior to the scheduled redemption date. Any notice of optional or extraordinary optional redemption that is rescinded by the Director of Finance shall be of no effect, and the Bonds for which the notice of redemption has been rescinded shall remain outstanding. Section 9. Failure to Pay Bonds. If any Bond is not paid when properly presented at its maturity or redemption date, the City shall be obligated to pay interest on that Bond at the same rate provided on that Bond from and after its maturity or redemption date until that Bond, including principal, redemption premium (if any), and interest, is paid in full or until sufficient money for its payment in full is on deposit in the Bond Redemption Fund and that Bond has been called for payment by giving notice of that call to the Registered Owner of that Bond. Section 10. Form and Execution of Bonds. The Bonds shall be typed, printed, or reproduced in a form consistent with the provisions of this ordinance and State law and shall be signed by the Mayor and Director of Finance, either or both of whose signatures may be manual or in facsimile. The seal of the City or a facsimile reproduction thereof shall be impressed or printed thereon. Only Bonds bearing a certificate of authentication in substantially the following form (with the designation, year, and Series and such other designation, if any, all adjusted consistent with this ordinance and the Bond Sale Terms) and manually signed by the Bond Registrar shall be valid or obligatory for any purpose or entitled to the benefits of this ordinance: "This Bond is one of the fully registered The City of Seattle, Washington, [Limited Tax General Obligation Bonds], [Year] [Series and other designation, if any], described in [this ordinance]." The authorized signing of a certificate of authentication shall be conclusive evidence that the Bond so authenticated has been duly executed, authenticated, and delivered and is entitled to the benefits of this ordinance. If any officer whose manual or facsimile signature appears on a Bond ceases to be an officer of the City authorized to sign bonds before the Bond bearing that officer's manual or facsimile signature is authenticated or delivered by the Bond Registrar or issued by the City, that Bond nevertheless may be authenticated, delivered, and issued and, when authenticated, delivered, and issued, shall be as binding on the City as though that person had continued to be an officer of the City authorized to sign bonds. Any Bond also may be signed on behalf of the City by any person who, on the actual date of signing of the Bond, is an officer of the City authorized to sign bonds, although that person did not hold the required office on the Issue Date of that Series of the Bonds. Section 11. Pledge of Taxes. For so long as any of the Bonds are 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 Bonds. 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. Section 12. Refunding or Defeasance of Bonds. (a) Bonds Designated as Refundable Bonds. Each Series of the Bonds is designated as a Series of "Refundable Bonds" for purposes of the Omnibus Refunding Ordinance. (b) Refunding; Defeasance. The City may issue refunding bonds pursuant to the laws of the State or use money available from any other lawful source (i) to pay when due the principal of (including premium, if any) and interest on any Bond, or any portion thereof, included in a refunding or defeasance plan (the "Defeased Bonds"); (ii) to redeem and retire, release, refund, or defease the Defeased Bonds; and (iii) to pay the costs of such refunding or defeasance. If money and/or Government Obligations maturing at a time or times and in an amount sufficient (together with known earned income from the investment thereof) to redeem and retire, release, refund, or defease the Defeased Bonds in accordance with their terms is set aside in a special trust fund or escrow account irrevocably pledged to such redemption, retirement, release, refunding, or defeasance (the "Trust Account"), then all right and interest of the Owners of the Defeased Bonds in the covenants of this ordinance and in the funds and accounts pledged to the payment of such Defeased Bonds, other than the right to receive the funds so set aside and pledged, thereafter shall cease and become void. Such Owners thereafter shall have the right to receive payment of the principal of and interest or redemption price on the Defeased Bonds from the Trust Account. After such a Trust Account is established and fully funded as set forth above, the Defeased Bonds shall be deemed to be no longer outstanding, and the Director of Finance may then apply any money in any other fund or account established for the payment or redemption of the Defeased Bonds to any lawful purpose. (c) Notice of Defeasance or Refunding. Unless otherwise specified in the applicable Bond Documents, notice of refunding or defeasance shall be given, and selection of Bonds for any partial refunding or defeasance shall be conducted, in the manner set forth in this ordinance for the redemption of Bonds. Section 13. Federal Tax Matters. The Bond Documents may include such additional terms and covenants relating to federal tax matters as the Director of Finance deems necessary or appropriate, including the following: (a) Tax-Exempt Bonds. For each Series of the Bonds issued as Tax-Exempt Bonds, the City covenants that it will take all actions consistent with the terms of such Series, as set forth in this ordinance and the applicable Bond Documents, that are reasonably within its power and necessary to prevent interest on that Series from being included in gross income for federal income tax purposes. The City further covenants that it will neither take any action nor make or permit any use of gross proceeds of such Series (or other funds of the City treated as gross proceeds of that Series) at any time during the term of such Series that will cause interest on such Series to be included in gross income for federal income tax purposes. The City also covenants that, to the extent the arbitrage rebate requirement of Section 148 of the Code is applicable to any Series issued as Tax-Exempt Bonds, it will take all actions necessary to comply (or to be treated as having complied) with that requirement in connection with that Series (including the calculation and payment of any penalties that the City may elect to pay as an alternative to calculating rebatable arbitrage and the payment of any other penalties if required under Section 148 of the Code) to prevent interest on such Series from being included in gross income for federal income tax purposes. (b) Taxable Bonds and Tax-Advantaged Bonds. For each Series of the Bonds issued as Taxable Bonds or as Tax-Advantaged Bonds, the Director of Finance is authorized to make any required designations or elections in the Bonds and other Bond Documents. In addition, the Director of Finance may execute additional written agreements and approve additional bond covenants on behalf of the City, all as the Director may deem necessary or appropriate in order to obtain, maintain, and administer such tax status. In the case of Tax-Advantaged Bonds, such additional covenants and agreements may include (without limiting the generality of the foregoing) those provisions as are necessary or convenient in order for the City (i) to receive from the United States Treasury any tax credit payment or other tax benefit the City may be eligible to receive in respect of such Tax-Advantaged Bond, and (ii) to ensure that such Series otherwise becomes and remains eligible for those tax advantages under the Code. Section 14. Official Statement; Continuing Disclosure. (a) Preliminary Official Statement. The Director of Finance and other appropriate City officials are directed to cause the preparation of and review the form of a preliminary official statement in connection with each sale of one or more Series to the public. For the sole purpose of the Purchaser's compliance with paragraph (b)(1) of Rule 15c2-12, the Director of Finance is authorized to deem that preliminary official statement final as of its date, except for the omission of information permitted to be omitted by Rule 15c2-12. The City approves the distribution to potential purchasers of the Bonds of a preliminary official statement that has been deemed final in accordance with this subsection 14(a). (b) Final Official Statement. The City approves the preparation of a final official statement for each sale of one or more Series to be sold to the public in the form of the preliminary official statement with such additions, modifications, and amendments as the Director of Finance deems necessary or desirable, and further authorizes the Director to execute and deliver such final official statement to the Purchaser. The City authorizes and approves the distribution by the Purchaser of that final official statement to purchasers and potential purchasers of the Bonds. (c) Undertaking to Provide Continuing Disclosure. To meet the requirements of paragraph (b)(5) of Rule 15c2-12, as applicable to a participating underwriter for a Series of the Bonds, the Director of Finance is authorized to execute a written Continuing Disclosure Certificate with respect to that Series, in substantially the form attached to this ordinance as Exhibit B. Section 15. Deposit and Use of Proceeds. Unless otherwise provided in the Bond Sale Terms, the principal proceeds and net premium, if any, received from the sale and delivery of any Series of the Bonds shall be paid into or allocated to the 2026 Multipurpose LTGO Bond Fund previously created by Ordinance 127266, or to such funds, subfunds, accounts, or subaccounts of the City Treasury as the Director may designate for that Series, and used for the purposes described in Section 2 of this ordinance. The Director of Finance may use the principal proceeds and net premium, if any, of any Series to pay for costs of issuance of that Series, and the Director also may incur and account for costs of issuance that are not included as part of the bond proceeds and net premium, including but not limited to any underwriter's discount. The Director of Finance may (i) establish and transfer proceeds of the Bonds among funds, subfunds, accounts, or subaccounts in the City Treasury, or (ii) make or repay interfund loans pursuant to Seattle Municipal Code Section 5.06.030 to or from other City accounts or funds, all on terms that the Director may deem necessary, appropriate, or desirable to carry out the purposes of this ordinance and consistent with the Bond Sale Terms. Enactment of this ordinance authorizes the transfer of amounts from the 2026 Multipurpose LTGO Bond Fund (and such other funds, subfunds, accounts, or subaccounts created for the purpose described in this section) to other funds in order to carry out the purposes of this ordinance. There has previously been created and established in the City Treasury the Bond Redemption Fund. Net premium and accrued interest received from the sale and delivery of a Series of the Bonds that is not necessary for the purposes described in Section 2 of this ordinance, if any, shall be paid or allocated into the Bond Redemption Fund prior to the first debt service payment date with respect to that Series. Until needed to pay the Project expenses and the costs described in this ordinance, the City may invest the proceeds of any Series of the Bonds temporarily in any authorized investment, and the investment earnings shall be deposited in such funds, subfunds, accounts, and subaccounts as may be designated by the Director of Finance. Earnings subject to a federal tax or rebate requirement may be withdrawn from any such fund or account and used for those federal tax or rebate purposes. The Director of Finance may pay principal of and interest on a Series of the Bonds with any proceeds of that Series (including interest earnings thereon) remaining after applying such proceeds to the purposes set forth in Section 2 of this ordinance, or after the City Council has determined that the expenditure of such Bond proceeds for those purposes is no longer necessary or appropriate. Section 16. Amendment of Exhibit A to Ordinance 123480 (2011 Projects). Ordinance 123480 authorized issuance of the City's Limited Tax General Obligation Improvement Bonds, 2011 (the "2011 Bonds"), and provided that proceeds of the 2011 Bonds would be used to carry out the costs of projects specified in Exhibit A to that ordinance or by future ordinance. Exhibit A to Ordinance 123480 was subsequently amended by Ordinances 124341, 124637, and 124924, and is further amended to read as set forth in Exhibit C-1, attached to this ordinance and incorporated by reference. Strikethrough text bracketed by double parentheses indicates deleted text and double underlining indicates inserted text, reflecting the cumulative effect of all amendments to the text originally adopted as Exhibit A to Ordinance 123480. This amendment is ratified and confirmed in all respects and restates and replaces Exhibit A to Ordinance 123480 in its entirety. No other terms of Ordinance 123480, as currently in effect, are modified by this amendment. Section 17. Amendment of Exhibit A to Ordinance 124053 (2013 Projects). Ordinance 124053 authorized issuance of the City's Limited Tax General Obligation Improvement Bonds, 2013A (the "2013A Bonds") and the new money portion of the City's Limited Tax General Obligation Improvement and Refunding Bonds, 2013B (Taxable) (the "2013B Bonds" and together with the 2013A Bonds, the "2013 Bonds"), and provided that proceeds of the 2013 Bonds would be used to carry out the costs of projects specified in Exhibit A to that ordinance or by future ordinance. Exhibit A to Ordinance 124053 was subsequently amended by Ordinances 124146 and 124341, and is further amended to read as set forth in Exhibit C-2, attached to this ordinance and incorporated by reference. Strikethrough text bracketed by double parentheses indicates deleted text and double underlining indicates inserted text, reflecting the cumulative effect of all amendments to the text originally adopted as Exhibit A to Ordinance 124053. This amendment is ratified and confirmed in all respects and restates and replaces Exhibit A to Ordinance 124053 in its entirety. No other terms of Ordinance 124053, as currently in effect, are modified by this amendment. Section 18. Amendment of Exhibit A to Ordinance 124341 (2014 Projects). Ordinance 124341 authorized issuance of the new money portion of the City's Limited Tax General Obligation Improvement and Refunding Bonds, 2014 (the "2014 Bonds"), and provided that proceeds of the 2014 Bonds would be used to carry out the costs of projects specified in Exhibit A to that ordinance or by future ordinance. Exhibit A to Ordinance 124341 was subsequently amended by Ordinance 126938, and is further amended to read as set forth in Exhibit C-3, attached to this ordinance and incorporated by reference. Strikethrough text bracketed by double parentheses indicates deleted text and double underlining indicates inserted text. This amendment is ratified and confirmed in all respects and restates and replaces Exhibit A to Ordinance 124341 in its entirety. No other terms of Ordinance 124341, as currently in effect, are modified by this amendment. Section 19. Amendment of Exhibit A to Ordinance 124637 (2015 Projects). Ordinance 124637 authorized issuance of the new money portion of the City's Limited Tax General Obligation Improvement and Refunding Bonds, 2015A (the "2015A Bonds") and the Limited Tax General Obligation Improvement Bonds, 2015B (Taxable) (the "2015B Bonds", and together with the 2015A Bonds, the "2015 Bonds"), and provided that proceeds of the 2015 Bonds would be used to carry out the costs of projects specified in Exhibit A to that ordinance or by future ordinance. Exhibit A to Ordinance 124637 was subsequently amended by Ordinance 126938, and is further amended to read as set forth in Exhibit C-4, attached to this ordinance and incorporated by reference. Strikethrough text bracketed by double parentheses indicates deleted text and double underlining indicates inserted text, reflecting the cumulative effect of all amendments to the text originally adopted as Exhibit A to Ordinance 124637. This amendment is ratified and confirmed in all respects and restates and replaces Exhibit A to Ordinance 124637 in its entirety. No other terms of Ordinance 124637, as currently in effect, are modified by this amendment. Section 20. Amendment of Exhibit A to Ordinance 124924 (2016 Projects). Ordinance 124924 authorized issuance of the new money portion of the City's Limited Tax General Obligation Improvement and Refunding Bonds, 2016A (the "2016A Bonds") and the Limited Tax General Obligation Improvement Bonds, 2016B (Taxable) (the "2016B Bonds," and together with the 2016A Bonds, the "2016 Bonds"), and provided that proceeds of the 2016 Bonds would be used to carry out the costs of projects specified in Exhibit A to that ordinance or by future ordinance. Exhibit A to Ordinance 124924 was subsequently amended by Ordinances 125986 and 126938, and is further amended to read as set forth in Exhibit C-5, attached to this ordinance and incorporated by reference. Strikethrough text bracketed by double parentheses indicates deleted text and double underlining indicates inserted text. This amendment is ratified and confirmed in all respects and restates and replaces Exhibit A to Ordinance 124924 in its entirety. No other terms of Ordinance 124924, as currently in effect, are modified by this amendment. Section 21. Amendment of Exhibit A to Ordinance 125197 (2017 Projects). Ordinance 125197 authorized issuance of the new money portion of the City's Limited Tax General Obligation Improvement and Refunding Bonds, 2017A (the "2017A Bonds") and the Limited Tax General Obligation Improvement Bonds, 2017B (Taxable) (the "2017B Bonds," and together with the 2017A Bonds, the "2017 Bonds"), and provided that proceeds of the 2017 Bonds would be used to carry out the costs of projects specified in Exhibit A to that ordinance or by future ordinance. Exhibit A to Ordinance 125197 was subsequently amended by Ordinances 125456, 125715, and 125986, and is further amended to read as set forth in Exhibit C-6, attached to this ordinance and incorporated by reference. Strikethrough text bracketed by double parentheses indicates deleted text and double underlining indicates inserted text reflecting the cumulative effect of all amendments to the text originally adopted in Exhibit A to Ordinance 125197. This amendment is ratified and confirmed in all respects and restates and replaces Exhibit A to Ordinance 125197 in its entirety. No other terms of Ordinance 125197, as currently in effect, are modified by this amendment. Section 22. General Authorization. In addition to the specific authorizations in this ordinance, the Mayor, the Director of Finance, and each other appropriate officer of the City are each authorized and directed to do everything such officer may judge necessary, appropriate, or desirable in order to carry out the terms and provisions of, and complete the transactions contemplated by, this ordinance. In particular and without limiting the foregoing: (a) The Director of Finance, in the Director's discretion and without further action by the City Council, (i) may issue requests for proposals to provide underwriting services or financing facilities (including liquidity or credit support), and may execute engagement letters with underwriters and other financial institutions (including providers of liquidity or credit support) based on responses to such requests; (ii) may select and make decisions regarding the Bond Registrar, fiscal or paying agents, and any Securities Depository for each Series of the Bonds; and (iii) may take such actions on behalf of the City as are necessary or appropriate for the City to designate, qualify, or maintain the tax-exempt treatment with respect to any Series issued as Tax-Exempt Bonds, to receive from the United States Treasury any available tax credit payments or other tax advantages available in respect of any Series issued as Tax-Advantaged Bonds, and to otherwise receive any other federal tax benefits relating to any Series of the Bonds that are available to the City; and (b) The Mayor and Director of Finance are independently authorized (i) to execute and deliver any and all contracts or other documents as are consistent with this ordinance and for which the City's approval is necessary or to which the City is a party (including but not limited to agreements with escrow agents; refunding or defeasance trustees; liquidity or credit support providers; bond insurers; underwriters; lenders or other financial institutions; the Bond Registrar and any other fiscal or paying agents; counterparties to interest rate swap, cap, floor, or similar agreements; and custodians); and (ii) to negotiate, execute, and deliver such other contracts or documents incidental to the issuance and sale of a Series of the Bonds; the establishment of the initial interest rate or rates on a Bond; or the tender, purchase, remarketing, or redemption of a Bond, as may in such official's judgment be necessary or appropriate. Section 23. Severability. The provisions of this ordinance are declared to be separate and severable. The invalidity of any clause, sentence, paragraph, subdivision, section, subsection, or portion of this ordinance, or the invalidity of its application to any person or circumstance, does not affect the validity of the remainder of this ordinance or the validity of its application to other persons or circumstances. Section 24. Ratification of Prior Acts. Any action consistent with the authority of this ordinance taken after its passage and prior to its effective date is ratified and confirmed. Section 25. Section Headings. Section headings in this ordinance are nonsubstantive. Section 26. Effective Date. This ordinance shall take effect as provided by Seattle Municipal Code Sections 1.04.020 and 1.04.070. Passed by the City Council the ________ day of _________________________, 2025, and signed by me in open session in authentication of its passage this ________ day of _________________________, 2025. ____________________________________ President ____________ of the City Council Approved / returned unsigned / vetoed this ____day of _______________, 2025. ____________________________________ Bruce A. Harrell, Mayor Filed by me this ________ day of _________________________, 2025. ____________________________________ Scheereen Dedman, City Clerk (Seal) Attachments: Exhibit A - Description of 2026 Projects Exhibit B - Form of Continuing Disclosure Certificate Exhibit C-1 - Amended and Restated Exhibit A to Ordinance 123480 (Description of 2011 Projects) Exhibit C-2 - Amended and Restated Exhibit A to Ordinance 124053 (Description of 2013 Projects) Exhibit C-3 - Amended and Restated Exhibit A to Ordinance 124341 (Description of 2014 Projects) Exhibit C-4 - Amended and Restated Exhibit A to Ordinance 124637 (Description of 2015 Projects) Exhibit C-5 - Amended and Restated Exhibit A to Ordinance 124924 (Description of 2016 Projects) Exhibit C-6 - Amended and Restated Exhibit A to Ordinance 125197 (Description of 2017 Projects) Kristi Beattie/Alice Ostdiek OCF Multipurpose LTGO Bonds 2026 ORD D1 2 Template last revised February 19, 2025 2 Version No. 1