HomeMy WebLinkAbout07-07-2014PROCLAMATION
CITY OF ARLINGTON, WASHINGTON
GENERAL AVIATION APPRECIATION MONTH
WHEREAS: General aviation and community airports play a critical role in the lives
of our citizens, as well as in the operation of our businesses, industry, ranches, and farms;
and
WHEREAS: The City of Arlington has a significant interest in the continued vitality
of general aviation, aerospace, aircraft manufacturing, educational institutions, aviation
organizations, community airports, and airport operators; and
WHEREAS: Washington State has 135 public use airports serving 20,028 pilots and
7,585 general aviation aircraft; and
WHEREAS: Public use airports support 248,500 jobs, $15.3 billion in wages, and
$50.9 billion in total economic activity; and
WHEREAS: Arlington Municipal Airport has 580 aircraft based at the airport with
over 133,000 operations in 2013; and
WHEREAS: General aviation plays a vital role in the State’s response to
emergencies and natural disasters; and
WHEREAS: Arlington Municipal Airport played a critical role in the rescue and
recovery efforts associated with the March 22, 2014 Oso Landslide; and
WHEREAS: The nation’s aviation infrastructure represents an important, public
benefit, and direct, Congressional oversight is necessary to ensure stable funding of this
system.
WHEREAS: Washington is home to 59 charter flight companies, 116 repair stations,
and 24 flight schools operating 181 aircraft and providing 360 jobs. In addition, there are 64
fixed-based operators in the state.
WHEREAS: many communities in Washington depend heavily on general aviation
and community airports for the continued flow of commerce, tourists, and visitors to our
State; and
THEREFORE: I, Barbara Tolbert, Mayor of Arlington, Washington do hereby
proclaim general aviation a vital strategic resource to the City of Arlington, Washington and
declare July 2014 to be General Aviation Appreciation Month.
IN WITNESS WHEREOF, I hereunto set my hand this day of July 7, 2014
Barbara Tolbert, Mayor
DRAFT
Page 1 of 3
Council Chambers
110 East Third
June 16, 2014
City Council Members Present by Roll Call: Dick Butner, Jan Schuette, Marilyn Oertle, Chris Raezer,
Debora Nelson, Jesica Stickles, and Randy Tendering
Council Members Absent: None
City Staff Present: Allen Johnson, Kristin Banfield, Brian DeWitt, Kris Wallace, Bill Blake, Jim Chase,
Jim Kelly, Monica Schlagel, Maxine Jenft, Eric Scott, Paul Ellis, Lisa Teter, Deana Dean, and Steve
Peiffle – City Attorney
Also Known to be Present: Linda Byrnes, Cindy Huleatt, Kirk Boxleitner, and Jacob Kukua
Mayor Tolbert called the meeting to order at 7:03 p.m.
APPROVAL OF THE AGENDA
Chris Raezer moved to approve the Agenda. Marilyn Oertle seconded the motion which passed with a
unanimous vote.
INTRODUCTIONS OF SPECIAL GUESTS AND PRESENTATIONS
Commander Brian DeWitt introduced Arlington’s Chief of the Day, Sienna Leighton. Commander DeWitt
explained the Chief of the Day program and Sienna and her family were introduced to the Mayor and
Council.
PROCLAMATIONS
PUBLIC COMMENT
Linda Byrnes, on behalf of the Rotary Club, thanked the City for their partnership and spoke regarding the
playground updates at Haller Park.
CONSENT AGENDA
Chris Raezer moved and Marilyn Oertle seconded the motion to approve the Consent Agenda which was
unanimously carried to approve the following Consent Agenda items:
1. Minutes of the June 2 and 9, 2014 Council meetings
2. Accounts Payable: EFT Payments & Claims Checks #82009 through #82141 dated June 3, 2014
through June 16, 2014 in the amount of $1,971,436.11.
PUBLIC HEARING
Storm Water and Natural Resources Manager Bill Blake opened the public hearing on the Floodplain
Code Update. Public hearing was opened at 7:18:20 p.m. No one from the audience wishing to speak,
the public hearing was closed at 7:18:32 p.m. Council questions and comments were taken at 7:18:36.
Debora Nelson moved and Chris Raezer seconded the motion approve the proposed Ordinance updating
AMC sections 20.64.150 and 20.93.530. The motion was approved by a unanimous vote.
Minutes of the Arlington
City Council Meeting
Minutes of the City of Arlington City Council Meeting June 16, 2014
Page 2 of 3
NEW BUSINESS
Ordinance to repeal Ordinance No. 1418-172nd St NE Design Standards:
Public Works Director Jim Kelly recommended council repeal AMC 20.45 allowing 172nd St design to
move forward based on current traffic conditions, community needs, and available funding.
Debora Nelson moved and Marilyn Oertle seconded the motion to approve the proposed ordinance
repealing AMC chapter 20.45. The motion was approved by a unanimous vote.
Bid Award for the 2014 Utility Project:
City Engineer Eric Scott recommended council authorize an amendment to the sewer capital budget to
cover construction costs for the 2014 Utility Project and award the construction contract to the lowest
responsible bidder, Interwest Construction.
Dick Butner moved and Marilyn Oertle seconded the motion to accept the Interwest Construction bid for
the 2014 Utilities Improvement Project and award the contract to Interwest Construction in the amount of
$1,005,185.47, pending final review by the City Attorney. The motion was approved by a unanimous
vote.
Ordinance revising Gambling Tax Code
Community and Economic Development Director Paul Ellis recommended council adopt an amendment to
the gambling tax ordinance exempting raffles when conducted by a nonprofit entity as discussed at the
June 9, 2014 council workshop.
Chris Raezer moved and Debora Nelson seconded the motion to approve the proposed ordinance
amending AMC Chapter 3.32. The motion was approved by a unanimous vote.
Resolution regarding raffle tax for the Arlington Rotary Club
Paul Ellis recommended council adopt a resolution accepting the Haller Park improvements by the Rotary
Club in lieu of receiving any gambling tax otherwise payable.
Chris Raezer moved and Marilyn Oertle seconded the motion to approve the proposed resolution
regarding raffle tax for the Arlington Rotary Club. The motion was approved by a unanimous vote.
Extension of the Airport Use Agreement with Washington State Military Department
Paul Ellis recommended council approve the proposed MOU which is a renewal of a previous MOU and
which provides a staging area at the airport in the event of an emergency.
Jan Schuette moved and Jesica Stickles seconded the motion to approve the extension of the Military’s
use agreement with the Arlington Municipal Airport and authorize the Mayor to sign it. The motion was
approved by a unanimous vote.
Resolution Increasing Change Fund for Community Development
Paul Ellis recommended council increase the change fund for community development.
Marilyn Oertle moved and Chris Raezer seconded the motion to adopt the proposed Resolution increasing
the opening change fund amount to $200 for the Community and Economic Development Department.
The motion was carried with a unanimous vote.
2014 Equipment and Vehicle Replacement
Paul Ellis asked council to review the 2014 equipment and vehicle purchases and financing options.
Council is asked to authorize the purchase of the items, which will then be brought back at the end of the
year in an ordinance with all the 2014 budget amendments. Staff is recommending a line of credit with
Cashmere Valley State Bank at an interest rate of 2.5%. Brief discussion followed.
Chris Raezer moved and Debora Nelson seconded the motion to approve the 2014 equipment and vehicle
Minutes of the City of Arlington City Council Meeting June 16, 2014
Page 3 of 3
replacements as outlined in the staff memo of June 6, 2014, using existing revenues available in the
Equipment Replacement Fund which passed with a unanimous vote.
Chris Raezer moved and Marilyn Oertle seconded the motion to authorize staff to complete the financing
process with Cashmere Valley State Bank for a line of credit not to exceed $500,000 which passed with a
unanimous vote.
Chris Raezer moved and Randy Tendering seconded the motion to approve the proposed resolution
authorizing reimbursement of the equipment replacement with the use of the proceeds from the line of
credit from Cashmere Valley State Bank which passed by a unanimous vote.
Memorandum of Understanding with Arlington Police Officers Association to extend the 2013
contract for 2014, with minor modifications:
Kristin Banfield presented the proposed MOU between APO and COA indicating the parties have reached
a tentative agreement on the 2014 collective bargaining agreement.
Chris Raezer moved and Marilyn Oertle seconded the motion to authorize the Mayor to sign the
Memorandum of Understanding with the Arlington Police Officers Association. The motion passed with a
unanimous vote.
ADMINISTRATOR & STAFF REPORTS
City Administrator Allen Johnson thanked council for their decision making efforts regarding the city’s
financial situation.
COUNCIL MEMBER REPORTS and MAYOR’S REPORT
Randy Tendering, Jesica Stickles, Debora Nelson, Chris Raezer, Marilyn Oertle, Jan Schuette, and Dick
Butner gave brief reports. Jan Schuette reminded council and staff that the Relay for Life is this weekend,
June 21-22 at Arlington High School. Marilyn Oertle reminded council and staff that the dedication to art
piece “Rooted Embrace” is June 20th.
Mayor Tolbert informed council that the city would be receiving three interns from WSU this summer and
updated council on two capital projects ready for the state legislature.
EXECUTIVE SESSION
Counsel Peiffle announced there would be no need for an Executive Session.
ADJOURNMENT
With no further business to come before the Council, the meeting was adjourned at 8:02 p.m.
____________________________
Barbara Tolbert, Mayor
DRAFT
Page 1 of 2
Council Chambers
110 East Third Street
June 23, 2014
Councilmembers Present: Dick Butner, Randy Tendering, Marilyn Oertle, Debora Nelson, Chris Raezer,
Jan Schuette, and Jesica Stickles
Staff Present: Allen Johnson, Kristin Banfield, Paul Ellis, Jim Chase, Jim Kelly, Brian DeWitt, Jon
Ventura and Roxanne Guenzler.
Council Members Absent: None
Also Known to be Present: Sarah Arney, Mike Hopson and Jacob Kukua
Mayor Tolbert called the meeting to order at 7:00 p.m.
Chris Raezer moved to approve the agenda; Marilyn Oertle seconded the motion, which passed with a
unanimous vote.
WORKSHOP ITEMS ~ NO ACTION WAS TAKEN
Annual Report from Waste Management
Public Works Director Jim Kelly introduced Waste Management staff Will Ibershof who provided council
with Waste Management’s 2013 Annual Report. Discussion and questions followed.
Refinancing of the 2004 and 2009 LTGO Bonds
Finance Director Jim Chase introduced bond counsel Nancy Neraas with Foster Pepper LLC and Lindsay
Sovde with Piper Jaffray who addressed the proposed 2004 and 2009 LTGO bond sale. Mayor Tolbert,
Allen Johnson, Jim Chase and Lindsay Sovde will meet with Standard and Poor’s to obtain a bond rating
for this issue. Discussion and questions followed.
May Financial Report
Jim Chase, Paul Ellis and Kristin Banfield answered budget related questions submitted earlier by
Councilmember Schuette.
Mr. Chase then reviewed the May 2014 Financial Report with Council answering council questions
throughout the presentation.
Settlement Agreement with Tim Riddle
Community and Economic Development Director Paul Ellis addressed the Settlement Agreement with
Busy Beaver Recycling. Brief discussion followed.
Bystrom House Removal Apparent Low Bidder
Public Works Director Jim Kelly spoke to the Bystrom House Recovery, Salvage and Removal Project.
The apparent low bidder is Sky Corp LTD.; public works staff has determined they are qualified to
complete the project. Council questions and brief discussion followed.
Minutes of the Arlington
City Council Workshop
Minutes of the City of Arlington City Council Workshop DRAFT June 23, 2014
Page 2 of 2
Amendment to Snohomish County Housing & Community Development Urban County
Consortium Interlocal Agreement
Assistant City Administrator Kristin Banfield addressed the amendment to the Snohomish County
Housing & Community Development Urban County Consortium Interlocal Agreement. Brief discussion
followed.
Draft Ordinance Addressing Aggressive Solicitation, Begging and Camping Issues
Police Commander Brian DeWitt and Police Sergeant Jon Ventura reviewed the proposed ordinance
addressing aggressive, solicitation, begging and camping issues. A revised draft ordinance with minor
revisions was distributed to council. Lengthy discussion followed.
Miscellaneous Council Items
Council retreat will be held October 4th at River Rock Inn; details to follow.
Public Comment
Jacob Kukua spoke to the public outreach regarding Xpressbillpay for utility bills, suggesting the city offer
customer incentives. Mr. Kukua also spoke to the proposed ordinance regarding aggressive solicitation,
begging and camping issues.
Executive Session
None
Adjournment
The meeting was adjourned at 8:47 p.m.
____________________________
Barbara Tolbert, Mayor
City of Arlington
Council Agenda Bill
Item:
NB #1
Attachment
C
COUNCIL MEETING DATE:
July 7, 2014
SUBJECT:
Bond Sale to refinance 2004 and 2009 LTGO Bonds
ATTACHMENTS:
Preliminary Official Statement
Draft Bond Ordinance
DEPARTMENT OF ORIGIN
Finance; Contact Jim Chase – 360-403-3422
EXPENDITURES REQUESTED: -0-
BUDGET CATEGORY: N/A
LEGAL REVIEW:
DESCRIPTION:
It advantageous to refinance the both the 2004 and the 2009 Limited Tax General Obligation
Bonds to take advantage of current low interest rates. The 2004 bonds were issued to finance
the construction of Police Station/City Hall Annex, and the 2009 bonds were used to finance
the Airport Office expansion.
We will be meeting with Standard and Poor’s to obtain a bond rating for this issue.
HISTORY:
Lindsay Sovde, a Managing Director with Piper Jaffray & Co., has determined the City could
save an estimated $668,000 (May Calculations) in net present value savings over the next 20
years by refinancing the 2004 LTGO Bonds. The Bonds currently pay interest ranging from
4.6% to 4.85%. It is estimated by refinancing the rates could be in the 2.00% to 5.00% range.
By refinancing the 2009 bonds, currently paying interest at 4.75%, the estimated net present
value savings could amount to $51,000 over the next ten years. Interest rates could also be in
the 2% to 5% range.
The City has utilized the services of Piper Jaffray in the past. Ms. Sovde has extensive
experience in municipal bond refinancing. She will be attending the June 23rd meeting. Nancy
Neraas, with Foster Pepper, has more than 25 years of experience as bond counsel for cities,
counties, and special districts. She will also be attendance at the meeting.
ALTERNATIVES
Table for additional review.
Do not refinance the 2004 LTGO Bonds.
Do not refinance the 2009 LTGO Bonds.
RECOMMENDED MOTION:
I move to approve the proposed Ordinance providing for the issuance, sale and delivery of not
to exceed $9,000,000 aggregate principal amount of limited tax general obligation refunding
bonds to refund the City’s outstanding Limited Tax General Obligation Bonds, 2004, to prepay
the City’s Limited Tax General Obligation Bond, 2009, and to pay the costs of issuance and sale
of the bonds.
PRELIMINARY OFFICIAL STATEMENT DATED _________________________, 2014
$7,735,000*
City of Arlington, Washington
Limited Tax General Obligation Refunding Bonds, 2014
DATED: Date of Initial Delivery (estimated to be August 19, 2014) DUE: December 1, as shown on the inside cover
STANDARD & POOR’S RATING—Applied for; see “Rating” herein.
BANK QUALIFIED—The City of Arlington, Washington (the “City”) has designated its Limited Tax General Obligation
Refunding Bonds, 2014 (the “Bonds”) as “qualified tax-exempt obligations” under Section 265(b)(3)(B) of the Internal
Revenue Code of 1986, as amended (the “Code”) for banks, thrift institutions and other financial institutions. See “Tax
Matters” herein.
BOOK-ENTRY ONLY—The Bonds will be issued as fully registered bonds in denominations of $5,000, or integral multiples
thereof within a single maturity, and will be registered in the name of Cede & Co., as bond owner and nominee for The
Depository Trust Company (“DTC”). DTC will act as securities depository for the Bonds. Purchasers will not receive
certificates representing their interest in the Bonds purchased.
PRINCIPAL AND INTEREST PAYMENTS—Interest on the Bonds will be payable semiannually on each June 1 and
December 1, commencing on December 1, 2014, to maturity or earlier redemption. Principal of and interest on the
Bonds will be payable by the fiscal agency of the State of Washington, currently The Bank of New York Mellon (the
“Bond Registrar”), as further described herein. For so long as the Bonds remain in a “book -entry only” transfer system,
the fiscal agent will make such payments only to DTC, which in turn is obligated to remit such principal and interest to
its Participants for subsequent disbursement to Beneficial Owners of the Bonds as further described herein in
Appendix B—Book-Entry Transfer System.
MATURITY SCHEDULE LOCATED ON INSIDE COVER
REDEMPTION—The Bonds are subject to optional redemption prior to their stated maturities as further described herein.
SECURITY—The Bonds are limited tax general obligations of the City. The City has irrevocably covenanted and agreed that
it will include in its annual budget and levy ad valorem taxes annually, within the constitutional and statutory tax
limitations provided by law without a vote of the electors of the City, upon all the taxable property within the City in
amounts sufficient, together with all other money of the City legally available for such purposes, to pay the principal of
and interest on the Bonds as the same shall become due. The full faith, credit and resources of the City have been
pledged irrevocably for the annual levy and collection of such taxes and the prompt payment of such principal and
interest. The Bonds do not constitute a debt or indebtedness of the State of Washington (the “State”) or any political
subdivision thereof other than the City. See “Security for the Bonds” and “Taxing Authority” herein.
TAX EXEMPTION—In the opinion of Bond Counsel, under existing federal law and assuming compliance with applicable requirements
of the Internal Revenue Code of 1986, as amended (the “Code”), that must be satisfied subsequent to the issue date of the Bonds,
interest on the Bonds is excluded from gross income for federal income tax purposes and is not an item of tax preference for purposes
of the alternative minimum tax applicable to individuals. However, while interest on the Bonds also is not an item of tax preference
for purposes of the alternative minimum tax applicable to corporations, interest on the Bonds received by corporations is tak en into
account in the computation of adjusted current earnings for purposes of the alternative minimum tax applicable to corporation s,
interest on Bonds received by certain S corporations may be subject to tax, and interest on the Bonds received by foreign
corporations with United States branches may be subject to a foreign branch profits tax. Receipt of interest on the Bonds may have
other federal tax consequences for certain taxpayers. See “TAX MATTERS.”
DELIVERY—The Bonds are offered for sale to the original purchaser subject to the final approving legal opinion of Bond
Counsel. It is expected that the Bonds will be available for delivery to the Bond Registrar on behalf of DTC by Fast
Automated Securities Transfer, on or about August 19, 2014.
* Preliminary, subject to change.
This cover page contains certain information for quick reference only. It is not a summary of the issue. Investors must read the entire
Official Statement to obtain information essential to the making of an informed investment decision.
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City of Arlington, Washington
MATURITY SCHEDULE
$7,735,000*
Limited Tax General Obligation Refunding Bonds, 2014
Due Interest Due Interest
Dec. 1 Amounts* Rates Yields Price CUSIP Dec. 1 Amounts* Rates Yields Price CUSIP
2014 $ 105,000 % % 2025 $ 455,000 % %
2015 65,000 2026 480,000
2016 65,000 2027 505,000
2017 70,000 2028 530,000
2018 70,000 2029 555,000
2019 70,000 2030 585,000
2020 70,000 2031 610,000
2021 75,000 2032 645,000
2022 455,000 2033 680,000
2023 475,000 2034 710,000
2024 460,000
* Preliminary; subject to change.
ii
City of Arlington
238 N. Olympic Avenue
Arlington, Washington 98223
Phone: (360) 403-3421
www.arlingtonwa.gov*
Mayor and City Council
Barbara Tolbert Mayor
Richard Butner Council Member
Marilyn Oertle Council Member
Debora Nelson Council Member
Chris Raezer Council Member
Jan Schuette Council Member
Jesica Stickles Council Member
Randy Tendering Council Member
Certain City Officials
Allen Johnson City Administrator
James W. Chase Finance Director
Kristin Banfield Assistant City Administrator/City Clerk
Steve J. Peiffle City Attorney
Bond Counsel
Foster Pepper PLLC
Seattle, Washington
(206) 447-4400
Bond Registrar
The Bank of New York Mellon
Dallas, Texas
1-800-438-5473
* The City’s website is not part of this Official Statement, and investors should not rely on information presented in
the City’s website in determining whether to purchase the Bonds. This inactive textual reference to the City’s
website is not a hyperlink and does not incorporate the City’s website by reference.
This Official Statement does not constitute an offer to sell the Bonds in any jurisdiction in which or to a person to whom it is
unlawful to make such an offer. No dealer, salesperson or other person has been authorized by the City or the Underwriter to
give any information or to make any representations, other than those contained herein, in connection with the offering of th e
Bonds and, if given or made, such information or representations must not be relied upon. The information and expressions of
opinion herein are subject to change without notice, and neither the delivery of this Official Statement nor any sale made
hereunder will, under any circumstances, create an implication that there has been no chan ge in the affairs of the City since the
date hereof.
The Underwriter has provided the following sentence for inclusion in this Official Statement. The Underwriter has reviewed t he
information in this Official Statement in accordance with, and as part of, its responsibility to investors under the federal
securities laws as applied to the facts and circumstances of this transaction, but the Underwriter does not guarantee the accuracy
or completeness of such information.
This Preliminary Official Statement will be “deemed final” by the City, pursuant to Rule 15c2 -12 promulgated by the Securities
and Exchange Commission under the Securities Exchange Act of 1934, as amended, except for information which is permitted to
be excluded from this Preliminary Official Statement under Rule 15c2-12.
In connection with this offering, the Underwriter may over-allot or effect transactions that stabilize or maintain the market price
of the Bonds at levels above those which might otherwise prevail in the open market. Such s tabilizing, if commenced, may be
discontinued at any time.
The CUSIP numbers are included on the inside cover of this Official Statement for convenience of the holders and potential
holders of the Bonds. No assurance can be given that the CUSIP numbers for the Bonds will remain the same after the date of
issuance and delivery of the Bonds.
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iv
Table of Contents
Page
Description of the Bonds ............................................................................................................................................................... 1
Authorization for Issuance .................................................................................................................................................. 1
Principal Amount, Date, Interest Rates and Maturities ................................................................................................... 1
Redemption Provisions ........................................................................................................................................................ 1
Open Market Purchase ......................................................................................................................................................... 2
Bond Registrar and Registration Features ......................................................................................................................... 2
Book-Entry Bonds ................................................................................................................................................................. 2
Termination of Book-Entry System .................................................................................................................................... 2
Refunding or Defeasance of the Bonds .............................................................................................................................. 3
Purpose and Use of Proceeds ....................................................................................................................................................... 3
Purpose ................................................................................................................................................................................... 3
Plan of Refunding ................................................................................................................................................................. 3
Verification of Mathematical Calculations ........................................................................................................................ 4
Estimated Sources and Uses of Funds ................................................................................................................................ 4
Security for the Bonds ................................................................................................................................................................... 4
General ................................................................................................................................................................................... 4
Bonded Indebtedness .................................................................................................................................................................... 5
Outstanding Debt .................................................................................................................................................................. 6
Other Non-Voted Debt Secured by the General Fund ..................................................................................................... 6
Summary of Limited Tax General Obligation Bond Debt Service Requirements ........................................................ 6
Summary of Overlapping Debt ........................................................................................................................................... 7
Net Direct and Overlapping Debt ....................................................................................................................................... 7
Debt Payment Record ........................................................................................................................................................... 7
Future Financings ................................................................................................................................................................. 7
Taxing Authority............................................................................................................................................................................ 8
Authorized Property Tax Levies ......................................................................................................................................... 8
Overlapping Taxing Districts .............................................................................................................................................. 9
General Property Taxes ........................................................................................................................................................ 9
Regular Property Tax Limitations..................................................................................................................................... 10
Assessed Value .................................................................................................................................................................... 11
Property Tax Collection Procedure................................................................................................................................... 11
2014 Major Property Taxpayers ........................................................................................................................................ 12
Collection of Other Taxes ................................................................................................................................................... 13
Authorized Investments ............................................................................................................................................................. 14
Local Government Investment Pool ................................................................................................................................. 14
Authorized Investments for Bond Proceeds .................................................................................................................... 15
Financial Information .................................................................................................................................................................. 16
The City ......................................................................................................................................................................................... 18
Principal City Officers ........................................................................................................................................................ 18
City Staff ............................................................................................................................................................................... 18
Labor Relations .................................................................................................................................................................... 19
Pension System .................................................................................................................................................................... 19
Other Post-Employment Benefits...................................................................................................................................... 20
Insurance .............................................................................................................................................................................. 20
Accounting and Budgeting Policies .................................................................................................................................. 21
Auditing of City Finances .................................................................................................................................................. 21
Initiative and Referendum .......................................................................................................................................................... 26
Tax Matters ................................................................................................................................................................................... 26
Exclusion From Gross Income ........................................................................................................................................... 26
Continuing Requirements .................................................................................................................................................. 26
Alternative Minimum Tax ................................................................................................................................................. 26
Tax on Certain Passive Investment Income of S Corporations ..................................................................................... 26
Foreign Branch Profits Tax ................................................................................................................................................ 27
Possible Consequences of Tax Compliance Audit .......................................................................................................... 27
Certain Other Federal Tax Consequences ........................................................................................................................ 27
Preservation of Tax Exemption .................................................................................................................................................. 28
Rating ............................................................................................................................................................................................ 28
Continuing Disclosure................................................................................................................................................................. 28
Legal and Underwriting.............................................................................................................................................................. 29
Approval of Counsel .......................................................................................................................................................... 29
Absence of Material Litigation .......................................................................................................................................... 29
Underwriting ....................................................................................................................................................................... 30
Conflicts of Interest ............................................................................................................................................................. 30
Concluding Statement ........................................................................................................................................................ 30
Form of the Opinion of Bond Counsel ..................................................................................................................... Appendix A
Book-Entry Transfer System ...................................................................................................................................... Appendix B
2012 Audited Financial Statements .......................................................................................................................... Appendix C
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OFFICIAL STATEMENT
City of Arlington, Washington
$7,735,000*
Limited Tax General Obligation Refunding Bonds, 2014
The City of Arlington, Washington (the “City”), a municipal corporation duly organized and existing under
and by virtue of the laws of the State of Washington (the “State”), furnishes this Official Statement in
connection with the offering of $7,735,000* aggregate principal amount of its Limited Tax General Obligation
Refunding Bonds, 2014 (the “Bonds”). This Official Statement provides information concerning the City and
the Bonds.
Description of the Bonds
Authorization for Issuance
Under and in accordance with State laws, the Bonds are issued pursuant to Ordinance No. ____ (the “Bond
Ordinance”), passed by the City Council (the “Council”) on ________________, 2014, and the authority of
chapters 39.36, 39.46 and 39.53 of the Revised Code of Washington (“RCW”). The Bonds do not require voter
approval.
Principal Amount, Date, Interest Rates and Maturities
The Bonds will be dated and bear interest from the date of initial delivery to the Underwriter. The Bonds will
mature on the dates and in the principal amounts and will bear interest (payable semiannually on each June 1
and December 1, commencing December 1, 2014) until the maturity or earlier redemption of the Bonds at the
rates set forth on the inside cover of this Official Statement. Interest on the Bonds will be computed on the
basis of a 360-day year consisting of twelve 30-day months. Principal of and interest on the Bonds will be
payable by the fiscal agency of the State of Washington, currently The Bank of New York Mellon (the “Bond
Registrar”).
Redemption Provisions
Optional Redemption. The Bonds maturing on or after _____________ may be redeemed at the option of the
City at any time on or after June 1, 2024, as a whole or in part at par plus accrued interest to the date of
redemption.
Partial Redemption. Portions of the principal amount of any Bond, in authorized denominations of $5,000 or
any integral multiple thereof within a single maturity (“Authorized Denomination”), may be redeemed. If less
than all of the principal amount of any Bond is redeemed, upon surrender of that Bond to the Bond Registrar,
there will be issued to the Registered Owner, without charge therefor, 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 remaining unredeemed.
Selection of Bonds for Redemption. Each series, if fewer than all of the Bonds are to be redeemed prior to
maturity, the City will select the maturity or maturities to be redeemed. For each series, if fewer than all of the
outstanding Bonds within a maturity are to be redeemed prior to maturity, the Bonds to be redeemed will be
selected randomly in such manner as the Bond Registrar determines. Notwithstanding the foregoing, for as
long as the Bonds are registered in the name of DTC or its nominee, such Bonds will be selected in accordance
with the Letter of Representations between the City and DTC.
Notice of Redemption. While the Bonds are held by DTC in book-entry only form, any notice of redemption will
be given at the time, to the entity and in the manner required by DTC in accordance with the Letter of
Representations, and the Bond Registrar will not be required to give any other notice of redemption. If the
Bonds cease to be in book-entry only form, the City will cause notice of any intended redemption of Bonds to
* Preliminary, subject to change.
be given by the Bond Registrar 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 at the Bond Registrar’s close of business on the date on which the Bond
Registrar prepares the notice of redemption, and the requirements of this sentence will be deemed to have
been fulfilled when notice has been mailed as so provided, whether or not it is actually received by the
Registered Owner of any Bond.
In the case of an optional redemption, the notice may state that the City retains the right to rescind the
redemption notice and the related optional redemption of Bonds by giving a notice of rescission to the affected
Registered Owners at any time prior to the scheduled optional redemption date. Any notice of optional
redemption that is so rescinded will be of no effect, and the Bo nds for which the notice of optional redemption
has been rescinded will remain outstanding.
Effect of Redemption. Interest on Bonds called for redemption will cease to accrue on the date fixed for
redemption unless either the notice of redemption is rescinded as set forth above or money sufficient to effect
such redemption is not on deposit in the Bond Fund .
Open Market Purchase
The City reserves the right and option to purchase any or all of the Bonds in the open market at any time at
any price acceptable to the City. All Bonds so purchased shall be canceled.
Bond Registrar and Registration Features
The Bonds will be issued as fully registered bonds and, when issued, will be registered in the name of Cede &
Co. as Registered Owner and as nominee for DTC. DTC will act as initial securities depository for the Bonds.
Individual purchases and sales of the Bonds may be made in book -entry form only in Authorized
Denominations. Purchasers (“Beneficial Owners”) will not receive certificates representing their interest in the
Bonds.
Principal of and interest on the Bonds will be payable by the Bond Registrar (or such other fiscal agency or
agencies as the State may from time to time designate). So long as Cede & Co. is the Registered Owner of the
Bonds, principal of and interest on the Bonds are payable by wire transfer by the Bond Registrar to DTC,
which in turn is obligated to remit such principal and interest to its Participants for subsequent disbursement
to the Beneficial Owners of the Bonds, as further described herein in Appendix B-“Book-Entry Transfer
System.”
Book-Entry Bonds
DTC will act as securities depository for the Bonds. The ownership of one fully registered Bond for each
maturity of each series of the Bonds, as set forth on the cover of this Official Statement, each in the aggregate
principal amount of such maturity, will be registered in the name of Cede & Co., as nominee for DTC. See
Appendix B attached hereto for additional information.
As indicated herein, certain information in Appendix B has been provided by DTC. The City makes no
representation as to the accuracy or completeness thereof. Purchasers of the Bonds should confirm this
information with DTC or its participants.
Termination of Book-Entry System
If DTC resigns as the securities depository and no substitute can be obtained, or if the City has determined that
the Bonds are to be in certificated form, the City will execute, authenticate and deliver at no cost to the
Beneficial Owners of the Bonds or their nominees, Bonds in fully registered form, in any Authorized
Denomination. Thereafter, interest on the Bonds will be paid by electronic transfer on the interest payment
date, or by check or draft of the Bond Registrar mailed on the interest payment da te to the persons in whose
names such Bonds are registered at the address appearing upon the Bond Register on the 15th day of the
month next preceding an interest payment date. However, the City is not required to make electronic transfers
except pursuant to a request by a registered owner in writing received at least 10 days before an interest
payment date and at the sole expense of the requesting registered owner. Principal of a Bond will be payable
upon presentation and surrender of the Bond by the reg istered owner to the Bond Registrar. The Bonds will
be transferable as provided in the Bond Ordinance.
Refunding or Defeasance of the Bonds
The City may issue refunding bonds pursuant to State law and use money available from any other lawful
sources to carry out a refunding or defeasance plan, which may include (a) paying when due the principal of
and interest on the affected Bonds (the “defeased Bonds”); (b) redeeming the defeased Bonds prior to their
maturity; and (c) paying the costs of the refunding or defeasance. If the City sets aside in a special trust fund
or escrow account irrevocably pledged to that redemption or defeasance (the “trust account”), money and/or
Government Obligations maturing at such time or times and bearing interest in amounts sufficient to redeem,
refund or defease the defeased Bonds in accordance with their terms, then all right and interest of the owners
of the defeased Bonds in the covenants of the Bond Ordinance and in the funds and accounts obligated 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. Thereafter, the owners of the Defeased Bonds will hav the right to receive
payment of the principal of and interest on the defeased Bonds solely from the trust account and the defeased
Bonds will be deemed no longer outstanding. In that event, the City may apply money remaining in any fund
or account (other than the trust account) established for the payment or redemption of the defeased Bonds to
any lawful purpose.
If the Bonds are registered in the name of DTC or its nominee, notice of any defeasance of Bonds will be given
to DTC in the manner prescribed in the Letter of Representations for notices of redemption of Bonds.
Purpose and Use of Proceeds
Purpose
The proceeds from the sale of the Bonds will be used to (i) refund a portion of the City’s outstanding limited
tax general obligation debt for debt service savings (see “Plan of Refunding” below); (ii) prepay the City’s
Limited Tax General Obligation Bond, 2009 issued to provide part of the funds to expand the administrative
building at the City’s municipal airport (the “2009 Bond”), currently outstanding in the principal amount of
$535,249.57; and (iii) pay the costs of issuance of the Bonds.
Plan of Refunding
Depending on market conditions on the day of pricing, a portion of the proceeds from the sale of the Bonds
will be used to refund on a current basis all or a portion of the City’s Limited Tax General Obligation Bon ds,
2004 maturing on December 1 in the years 2022 through 2028 and 2034 currently outstanding in the aggregate
principal amount of $7,700,000 (the “Refunding Candidates,” and as selected on the pricing date, the
“Refunded Bonds”).
Information on the Refunding Candidates is as follows:
Refunding Candidates
Maturity Years Principal Interest CUSIP
(December 1) Amounts Rates Numbers
2022 $ 440,000 4.60% 042038BG3
2023 460,000 4.65 042038BH1
2024 485,000 4.75 042038BJ7
2025 505,000 4.75 042038BK4
2026 530,000 4.75 042038BL2
2027 555,000 4.75 042038BM0
2028 585,000 4.75 042038BN8
2034* 4,140,000 4.85 042038BU2
* Term Bonds.
From a portion of the proceeds of the Bonds, the City will irrevocably set aside funds to provide payment of:
(a) interest on the Refunded Bonds when due up to and including September 18, 2014; and
(b) on September 18, 2014, the redemption price (par) of the Refunded Bonds.
The funds, interest earned thereon, and necessary cash balance, if any, will irrevocably be pledged to and held
in trust for the benefit of the owners of the Refunded Bonds by U.S. Bank National Association (the
“Refunding Trustee”), pursuant to an escrow deposit agreement to be executed by the City and the Refunding
Trustee.
Verification of Mathematical Calculations
Piper Jaffray & Co., Seattle, Washington, will verify the accuracy of the mathematical computations concerning
the adequacy of the funds to be placed in the escrow account to pay on the call date, pursuant the call for
redemption, the principal of and interest on the Refunded Bonds.
Estimated Sources and Uses of Funds
The proceeds of the Bonds are estimated to be applied as follows:
Sources of Funds
Par Amount of the Bonds (1) $ 7,735,000
Net Premium/(Discount)
Total Sources of Funds $
Use of Funds
Prepayment of the 2009 Bond $
Refunding of the Refunded Bonds
Issuance Costs (2)
Additional Proceeds
Total Use of Funds $
(1) Preliminary, subject to change.
(2) Includes Bond Counsel fees, rating fees, underwriter’s discount, and other costs associated with the issuance of the
Bonds.
Security for the Bonds
General
The Bonds are limited tax general obligation bonds of the City. For as long as any of the Bonds are
outstanding, the City has irrevocably pledged that it will, in the manner provided by law within the
constitutional and statutory limitations provided by law without the assent of the voters, include in its annual
levy amounts sufficient, together with other money that is lawfully available, to pay principal of and interest
on the Bonds as the same becomes due. The full faith, credit and resources of the City have been pledged
irrevocably for the prompt payment of the principal of and interest on the Bonds and such pledge is
enforceable in mandamus against the City. See “Bonded Indebtedness” and “Taxing Authority.”
The City may, subject to applicable laws, apply other funds available to make payments with respect to the
Bonds and thereby reduce the amount of future tax levies for such purpose.
The Bonds do not constitute a debt or indebtedness of the State or any political subdivision thereof other than
the City.
Bonded Indebtedness
The City may, without a vote of the electorate, issue debt as follows:
(1) Pursuant to an ordinance specifying the amount and object of the expenditure of the proceeds,
the City Council may borrow money for corporate purposes and issue bonds and notes within
the constitutional and statutory limitations on indebtedness. The Bonds will represent this type
of indebtedness.
(2) The City may execute conditional sales contracts for the purchase of real or personal property.
(3) The City may execute capital or financing leases with or without an option to purchase.
The Bonds are limited tax general obligations, issued without a vote of the electorate.
As prescribed by State statutes, the unlimited tax general obligation indebtedness permitted for cities, subject to
a 60 percent majority vote of registered voters, is limited to 2.5 percent of assessed value for general purposes, 2.5
percent for utilities and 2.5 percent for open space/park facilities. Within the 2.5 percent of assessed value for
general purposes, the City may, without a vote of the electors, incur general obligation indebtedness in an
amount not to exceed 1.5 percent of assessed value. Within that 1.5 percent of assessed value for general
purposes issued without a vote of the electors, the City may enter into capital or financing leases if the total
principal component of the lease payments, together with the other nonvoted general obligation indebtedness
of the City, does not exceed 1.5 percent of assessed value. The combination of unlimited tax and limited tax
general obligation debt for general purposes, including leases, cannot exceed 2.5 percent of assessed value and
for all purposes cannot exceed 7.5 percent of assessed value. The Bonds are issued without a vote.
Computation of Debt Capacity
(As of August 19, 2014)
2014 Tax Collection Year Assessed Value $ 1,816,314,125
Nonvoted Debt Capacity
1.5% of Assessed Value $ 27,244,711
Less: Outstanding Nonvoted Debt (1) (11,089,550)
Less: The Bonds (2) (7,735,000)
Remaining Nonvoted Debt Capacity $ 8,420,161
Voted and Nonvoted Debt Capacity for General Purposes
2.5% of Assessed Value $ 45,407,853
Less: Outstanding Nonvoted Debt (1) (11,089,550)
Less: The Bonds (2) (7,735,000)
Less: Outstanding Voted Debt 0
Total Remaining Voted and Nonvoted Debt Capacity for General Purposes $ 26,583,303
(1) Includes limited tax general obligation debt and other nonvoted general obligation debt; excludes the Refunding
Candidates.
(2) Preliminary, subject to change.
Source: City of Arlington.
Outstanding Debt
Long Term Borrowing
General Obligations: Non-voted
Dated Date of Amount Amount
Limited Tax General Obligation Bonds (1) Date Maturity Issued Outstanding
LTGO & Ref., 2007 06/12/07 12/01/27 $ 3,630,000 $ 2,825,000
LTGO & Ref., 2010 08/18/10 12/01/30 6,010,000 5,045,000
The Bonds 08/19/14 12/01/34 7,735,000 (2) 7,735,000 (2)
LTGO Bond Total $ 17,375,000 $ 15,605,000
(1) Excludes the Refunding Candidates and the 2009 Bond.
(2) Preliminary, subject to change.
Other Non-Voted Debt Secured by the General Fund
As of June 1, 2014, the City has a general obligation note payable for land purchase outstanding in the amount
of $3,200,000 with a final maturity of May 1, 2040. Additionally, t he City has two lease agreements
outstanding in the total amount of $19,550 with a final maturity of April 1, 2015.
Summary of Limited Tax General Obligation Bond Debt Service Requirements (1)
(1) Totals may not foot due to rounding. Includes only bonds and does not include other evidences of indebtedness
shown on previous page.
(2) Any principal and/or interest payments made prior to August 19, 2014 have been excluded. Excludes the Refunding
Candidates and the 2009 Bond.
(3) Preliminary, subject to change; assumes interest rates range from 2.00% to 5.00%.
Cal.Outstanding LTGO Bonds (2)Total Debt
Years Principal Interest Principal Interest Service
2014 600,000$ 161,778$ 105,000$ 103,728$ 970,506$
2015 605,000 303,705 65,000 364,000 1,337,705
2016 630,000 278,005 65,000 362,700 1,335,705
2017 670,000 251,255 70,000 360,750 1,352,005
2018 695,000 222,786 70,000 358,650 1,346,436
2019 730,000 195,268 70,000 356,550 1,351,818
2020 755,000 166,349 70,000 353,750 1,345,099
2021 730,000 136,461 75,000 350,950 1,292,411
2022 300,000 106,961 455,000 347,950 1,209,911
2023 310,000 94,471 475,000 329,750 1,209,221
2024 325,000 81,498 460,000 310,750 1,177,248
2025 340,000 67,911 455,000 287,750 1,150,661
2026 355,000 53,683 480,000 265,000 1,153,683
2027 370,000 38,118 505,000 241,000 1,154,118
2028 145,000 21,890 530,000 215,750 912,640
2029 150,000 14,920 555,000 189,250 909,170
2030 160,000 7,700 585,000 161,500 914,200
2031 - - 610,000 132,250 742,250
2032 - - 645,000 101,750 746,750
2033 - - 680,000 69,500 749,500
2034 - - 710,000 35,500 745,500
Total 7,870,000$ 2,202,758$ 7,735,000$ 5,298,778$ 23,106,536$
The Bonds (3)
Summary of Overlapping Debt
(As of June 1, 2014)
Estimated
2014 Assessed Percent Outstanding Overlapping
Overlapping Taxing District Value Overlap (1) GO Debt Debt
Arlington School District No. 16 $ 3,009,796,561 46.84% $ 36,660,000 $ 17,172,029
Public Hospital District No. 3 3,127,846,977 44.69 55,595,000 23,951,312
Fire Protection District No. 19 347,199,148 7.41 1,717,000 127,320
Snohomish County 79,448,742,407 2.29 456,786,655 10,442,809
Marysville School District No. 25 5,606,282,153 0.01 82,260,000 9,206
Total $ 51,702,677
(1) Represents the percentage of each taxing district’s assessed value within the City.
Source: Snohomish County Assessor and Treasurer and individual taxing districts.
Net Direct and Overlapping Debt
The following tables present information regarding the City’s direct debt (including the Bonds) and the
estimated portion of the debt of overlapping taxing districts allocated to the City’s residents.
Regular Assessed Value (2014 Collection Year) $ 1,816,314,125
Estimated 2014 Population (1)
Debt Information
Direct Debt (2) $ 18,824,550
Estimated Overlapping Debt (as previously detailed herein) 51,702,677
Total Net Direct and Overlapping Debt $ 70,527,227
(1) Estimate derived from the State of Washington, Office of Financial Management, Forecasting Division.
(2) Preliminary, subject to change; includes the Bonds plus limited tax general obligation bonds and other nonvoted debt.
Excludes the Refunding Candidates and the 2009 Bond.
Bonded Debt Ratios
Direct Debt to Assessed Value 1.04%
Direct and Overlapping Debt
to Assessed Value 3.88%
Per Capita Assessed Value $
Per Capita Direct Debt $
Per Capita Total Direct and Overlapping Debt $
Debt Payment Record
The City has promptly met all debt service requirements on outstanding obligations. No refunding bonds
have been issued to prevent an impending default.
Future Financings
Other than the Bonds, the City has no authorized but unissued general obligation bonds outstanding. The
City is currently in the process of setting up a $500,000 line of credit with a bank to finance the purchase of
police vehicles, computer equipment and emergency radio equipment from 2014 to 2016. Approximately
$186,000 will be financed in 2014
Taxing Authority
Authorized Property Tax Levies
The City’s regular levy for the 2014 collection year is $1.37469/$1,000. The regular levy is imposed without a
vote of the people for general purposes, including payment of debt service on the Bonds, and is subject to
limitations (see “Taxing Authority – General Property Taxes” and “– Regular Property Tax Limitations”
herein).
The maximum regular levy rate that the City is authorized to impose may not exceed $3.60/$1,000 of assessed
value, less the regular levy rates actually imposed in any given year by the Sno-Isle Intercounty Rural County
Rural Library District (the “Library District”) into which the City is annexed. Voter-approved excess levies by
the Library District do not affect the City’s maximum levy rate. The Library District’s maximum levy rate may
not exceed $0.50/$1,000. The Library District’s 201 4 regular levy rate is $0.50/$1,000 assessed value.
Of the maximum levy rate of $3.60/$1,000, $0.225/$1,000 must be used for fire pension funding purposes, if
required; otherwise this tax may be levied and used for any other municipal purpose. The City may also,
upon voter approval, impose certain additional levies for specified purposes (e.g., a levy for emergency
medical services) and excess levies (unlimited as to rate or amount), to pay debt service on unlimited tax
general obligation bonds. An excess levy also may be imposed without a vote to prevent the impairment of a
contract (RCW 84.52.052).
In April 2014, taxpayers voted to increase property taxes by $0.58 per $1,000 of assessed value. The increase is
expected to result in an increase of $1,044,000 in property taxes in 2015. This is a permanent increase in
property taxes.
The following table shows the City’s levy rates and dollar amounts levied since 2010.
Ad Valorem Tax Levies
(Dollars per $1,000 of Assessed Value)
Collection Levy Rates Levy Amounts
Year General EMS Total General EMS Total
2014 $1.37469 $0.50000 $1.87469 $2,496,862 $908,157 $3,405,019
2013 1.41986 0.50000 1.91986 2,457,063 865,251 3,322,313
2012 1.31274 0.50000 1.81274 2,395,563 912,430 3,307,993
2011 1.16941 0.46460 1.63401 2,359,636 937,468 3,297,104
2010 1.03410 0.41072 1.44482 2,315,625 919,701 3,235,326
Source: Snohomish County Assessor’s and Treasurer’s Offices.
Overlapping Taxing Districts
The overlapping taxing districts within the City have the statutory power to levy regular property taxes at the
following rates subject to the limitations provided by chapter 84.55 RCW, and to levy certain other voter
approved property taxes. For purposes of demonstration, representative levy rates for “levy code 110” of
Snohomish County (the “County”), as well as the statutory regular levy rate limitation of each type of
potential overlapping district, are listed below. Levy code 110 is wholly within the City, however it does not
include all of the property within the City; as a result, additional taxing districts, not listed below, levy taxes
within the City.
Representative Levy Rates for the 2014 Tax Collection Year
Representative Statutory
Levy Rates Regular Levy Rate Limit
Per $1,000 of Per $1,000 of
Assessed Value (1) Assessed Value
Snohomish County $ 1.07871 $1.800 (4)
County (Road Levy) n/a (2) 2.25
Rural Library District 0.50000 0.500
Port District n/a (2) 0.450
Fire Protection District n/a (2) 1.50
The City 1.37469 3.600 (5)(6)
Hospital District No. 3 1.37121 (3) 0.75
State Schools 2.38435 3.600 (7)
School District No. 16 5.29836 n/a (8)
Emergency Medical Services 0.50000
Total rate for the County levy code 110: $ 12.50732
(1) Includes both “regular” and “excess” (voter approved) levies.
(2) The County levy code 110 is included within the City and therefore does not have a County Road levy. Likewise, it
does not contain a port district or fire protection district.
(3) Includes voter-approved bond levies totaling $0.97357.
(4) Pursuant to RCW 84.52.043(1), a county may increase its levy from $1.80 per $1,000 of assessed value to a rate not to
exceed $2.475 per $1,000 of assessed value for general county purposes if (i) the total levies for both the county and
any road levy imposed within the county do not exceed $4.05 per $1,000 of assessed value and (ii) no other taxing
district has its levy reduced as a result of the increased county levy. Road levies are collected only within the
unincorporated portions of a county and therefore do not apply to any territory within the City. The County imposes
a road levy at a rate of $1.74055 per $1,000 of assessed value.
(5) Pursuant to RCW 41.16.060, $0.225 of the total $3.60 must be used for fire pension funding purposes, if required;
otherwise this tax may be levied and used for any other municipal purpose.
(6) The City’s levy authority of $3.60 per $1,000 of assessed value is reduced by the actual rate levied by the Library
District which has the authority to levy up to $0.50 per $1,000 of assessed value.
(7) Pursuant to RCW 84.52.043(1), the levy by the State may not exceed $3.60 per $1,000 of assessed value adjusted to the
State equalized value in accordance with the indicated ratio fixed by the State Department of Revenue, which levy is
to be used exclusively for the support of the common schools.
(8) Washington school districts do not have nonvoted regular levy authority.
Source: Snohomish County Assessor’s Office.
General Property Taxes
The following provides a general description of the City’s authority to levy property taxes and limitations
thereon, the method of determining the assessed value of real and personal property, tax collection
procedures, and tax collection information.
Authorized Property Taxes. The City is authorized to levy both “regular” property taxes and “excess” property
taxes.
(1) Regular Property Taxes. Regular property taxes are subject to constitutional and statutory limitations
as to rates and amounts and commonly are imposed by taxing districts for general municipal
purposes, including the payment of debt service on limited tax general obligation indebtedness, such
as the Bonds. Regular property taxes do not require voter approval except for certain increases and
for certain special additional levies for limited specified purposes.
(2) Excess Property Taxes. Excess property taxes are not subject to limitation as to rates or amounts but
must be authorized by a 60 percent approving popular vote, as provided in Article VII, Section 2, of
the State Constitution and RCW 84.52.052. To be valid, such popular vote must have a minimum
voter turnout of 40 percent of the number who voted at the last City general election, except that one -
year excess tax levies also are valid if the turnout is less than 40 percent and the measure receives a
number of affirmative votes equal to or greater than 24 percent of the number who voted at the last
City general election. Excess levies may be imposed without a popular vote when necessary to
prevent impairment of the obligations of contracts.
Regular Property Tax Limitations
The authority of a city to levy taxes without a vote of the people for general city purposes, including the
payment of debt service on limited tax general obligation indebtedness, such as the Bonds, is subject to the
limitations described below. Information relating to regular property tax limitations is based on existing
statutes and constitutional provisions. Changes in such laws could alter th e impact of other interrelated tax
limitations on the City.
Regular property tax levies are subject to rate limitations and amount limitations and to the uniformity
requirement of Article VII, Section 1 of the Washington Constitution, which specifies that a taxing district must
levy the same rate on similarly classified property throughout the district. Aggregate property taxes vary
within the County because of its different overlapping taxing districts. In the event th at the maximum
permissible levy varies within the City, the lowest permissible rate for any part of the City would be applied to
the entire City.
Maximum Rate Limitation. For general City purposes, Title 84 RCW authorizes the imposition of tax levies at
rates not to exceed statutory maximums (see “Overlapping Taxing Districts” herein). RCW 84.52.043 allows a
city to levy taxes of up to $3.375 per $1,000 of taxable property in the city. In addition, if not needed to fund a
firefighters pension fund, the city may levy an additional $0.225 for general municipal purposes, bringing the
maximum levy rate to $3.60 per $1,000. These taxes may be levied without a vote of the people. This
limitation is exclusive of a levy for the maintenance of a local improvement guaranty fund. See “Assessed
Value and Property Tax Collection Procedure” herein.
The One Percent Aggregate Regular Levy Limitation. Article VII, Section 2 of the Washington Constitution, as
amended in 1973, limits aggregate regular property tax levi es imposed by the State and all taxing districts,
except port districts and public utility districts, to one percent of the true and fair value of property.
RCW 84.52.050 provides the same limitation by statute.
$5.90/$1,000 Aggregate Regular Levy Limitation. Within the one percent limitation described above,
RCW 84.52.043(2) imposes an aggregate limitation on regular tax levies by all taxing districts, other than the
State, of $5.90/$1,000 of assessed value, except levies for any port or public utility d istrict; excess levies
authorized in Article VII, Section 2 of the Washington Constitution; certain metropolitan park district levies;
ferry district levies; a portion of certain levies by fire protection districts; transit levies by certain counties; and
certain levies for acquiring conservation futures, for emergency medical services or care, and to finance
affordable housing, county criminal justice levies, and a portion of certain flood district levies .
Uniformity Requirement. Article VII, Section 1 of the Washington Constitution requires that property taxes be
levied at a uniform rate upon the same class of property within the territorial limits of a taxing district levying
such taxes. It is possible because of different overlapping taxing districts in different areas of the City that the
maximum permissible levy might vary within the City. In that event, to comply with the constitutional
requirement for uniformity of taxation, the lowest permissible rate for any part of the City would be applied to
the entire City.
Prioritization of Levies. RCW 84.52.010 provides that if aggregate levies certified by all taxing districts exceed
the aggregate levy limitations described above, levies certified by junior taxing districts are reduced or
eliminated in order to bring the aggregate levy into compliance with the statutory maximum prescribed by
RCW 84.52.050 and 84.52.043. RCW 84.52.043 defines “junior taxing districts” as all taxing districts other than
the state, counties, road districts, cities, towns, port districts, and public utility districts. The City is not a
junior taxing district.
The Levy Amount Increase Limitation. The regular property tax increase limitation (chapter 84.55 RCW) limits
the total dollar amount of regular property taxes levied by an individual local taxing district such as the City
to the amount of such taxes levied in the highest of the three most recent years multiplied by a “limit factor,”
plus a full value adjustment to account for taxes on new construction, annexations, impr ovements and State-
assessed property at the previous year's rate. The limit factor is the lesser of 101 percent of the highest levy in
the three previous years (excluding new construction, improvements, and State -assessed property) or 100
percent plus inflation, unless a supermajority of the Council approves a limit factor of 101 percent. Any
increase in excess of this amount must be approved by a simple majority of the voters, pursuant to a “levy lid
lift” ballot proposition, as described below.
RCW 84.55.092 allows the property tax levy to be set at the amount that would be allowed if the tax levy for
taxes due in each year since 1986 had been set at the full amount allowed under chapter 84.55 RCW. Thus, if
any year a taxing district levies an amount that is less than the maximum allowed under the limit described
above, the amount that was not levied will nevertheless be included in the base for determining levy limit in
future years. This is sometimes referred to as “banked” levy capacity. The City do not have any banked levy
capacity.
With a majority vote of its electors, a taxing district may levy a greater amount than what otherwise would be
allowed by the tax increase limitation. This increase may be imposed indefinitely or for a limited period, and
revenues may be (but are not required to be) dedicated to satisfy a limited purpose, all as allowed by RCW
84.55.050. This is known as a “levy lid lift.” A levy lid lift may not be used to increase the levy if it would
cause the taxing district’s levy to exceed the rate limitations above.
Since the regular property tax increase limitation applies to the total dollar amount levied rather than to levy
rates, increases in the assessed value of all property in the taxing district (excluding new c onstruction,
improvements, certain wind farm property, and State-assessed property) which exceed the rate of growth in
taxes allowed by the limit factor result in decreased regular tax levy rates, unless voters authorize a higher
levy or the taxing district uses banked levy capacity. Decreases in the assessed value of all property in the
taxing district (including new construction, improvements, certain wind farm property, and State-assessed
property) or increases in such assessed value that are less than the rate of growth in taxes imposed, among
other events, may result in increased regular tax levy rates.
Assessed Value
The Snohomish County Assessor, or equivalent thereof (“Assessor”), determines the value of all real and
personal property throughout the County that is subject to ad valorem taxation, except certain utility properties
which are valued by the State Department of Revenue. The Assessor is an elected official whose duties and
methods of determining value are prescribed and controlled by statute and by detailed regulations
promulgated by the State Department of Revenue.
For tax purposes, the assessed value of property is 100 percent of its market value. Three approaches may be
used to determine real property value: market data, replacement cost and income generating capacity. In the
County, all property is subject to an annual property valuation and an on-site revaluation every four years.
The property is listed by the Assessor on a roll at its current assessed value and the roll is file d in the
Assessor’s office. The Assessor’s determinations are subject to revisions by the County Board of Equalization
and, for certain property, subject to further revisions by the State Board of Tax Appeals.
Property Tax Collection Procedure
Property taxes are levied in specific amounts and the rate for all taxes levied for all taxing districts in the
County is determined, calculated and fixed by the Assessor based upon the assessed value of the property
within the various taxing districts. The Assessor extends the taxes to be levied within each taxing district on a
tax roll that contains the total amount of taxes to be so levied and collected. By January 15 of each year, the tax
roll is delivered to the Snohomish County Treasurer (the “Treasurer”), or equivalent thereof, who creates a tax
account for each taxpayer and is responsible for the collection of taxes due to each account. All such taxes are
due and payable on April 30 of each year, but if the amount due from a taxpayer exceeds $50, one-half may be
paid then and the balance no later than October 31 of that year. Delinquent taxes are subject to interest at the
rate of 12 percent per year computed on a monthly basis from the date of delinquency until paid. In addition,
a penalty of three percent is assessed on June 1st of the year in which the tax was due and eight percent on
December 1st of the year due. All collections of interest on delinquent taxes are credited to the County’s
current expense fund.
The method of giving notice o f payment of taxes due, the accounting for the money collected, the division of
the taxes among the various taxing districts, notices of delinquency, and collection procedures are covered by
detailed statutes. The lien on property taxes is prior to all ot her liens or encumbrances of any kind on real or
personal property subject to taxation. By law the Treasurer may not commence foreclosure of a tax lien on real
property until three years have passed since the first delinquency. The State’s courts have no t decided
whether the Homestead Law (chapter 6.13 RCW) may give the occupying homeowner a right to retain the first
$125,000 of proceeds (effective July 22, 2007) of the forced sale of the family residence or other “homestead”
property for delinquent general property taxes. (See Algona v. Sharp, 30 Wn. App. 837, 638 P.2d 627 (1982),
holding the homestead right superior to the improvement district assessments.) The United States Bankruptcy
Court for the Western District of Washington has held that the home stead exemption applies to the lien for
property taxes, while the State Attorney General has taken the position that it does not.
Property Tax Collection Record
Tax Collection
Collection Assessed Ad Valorem Year As of
Year Valuation (1) Tax Levy of Levy 05/31/14
2014 $1,816,314,125 $3,405,019 (2) (2)
2013 1,727,872,805 3,322,313 97.0% 98.5%
2012 1,822,509,261 3,307,993 96.9 99.1
2011 2,018,675,444 3,297,104 96.8 99.7
2010 2,239,257,103 3,235,326 96.0 99.8
2009 2,306,249,447 3,132,395 95.2 99.9
(1) Assessed value is based upon 100 percent of estimated actual valuation.
(2) In process of collection.
NOTE: Taxes are due and payable on April 30 of each year of the levy. The entire tax or first half must be paid on or
before April 30, otherwise the total amount becomes delinquent on May 1. The second half of the tax is payable
on or before October 31, becoming delinquent November 1.
Source: Snohomish County Assessor and Treasurer’s Offices.
2014 Major Property Taxpayers
Percent of
2014 Collection Year City’s
Taxpayer Type of Business Assessed Valuation Total A.V.
Smokey Point Properties Property management $ 30,415,025 1.67%
Senior Operations LLC Military tank components 29,974,766 1.65
Arlington Advanced Mfg. Park Property mgmt/development 19,687,700 1.08
Lowe’s Companies of 61 Retail home improvement 17,106,200 0.94
Wal-Mart Retail department and grocery 16,338,000 0.90
Safeway Inc. Retail grocer 14,450,650 0.80
M&M Arlington LLC Retail shopping center 13,292,000 0.73
Cook Investments NW Indust. Park Financial planning/investments 10,828,500 0.60
MGP X Porperties Property mgmt/development 10,261,000 0.56
Ramo Realty & Construction Property mgmt/development 10,079,700 0.55
Subtotal – Ten of the City’s Largest Taxpayers 172,433,541 9.49
All Other City Taxpayers 1,643,880,584 90.51
Total City Taxpayers $ 1,816,314,125 100.00%
Sources: Snohomish County Assessor’s Office.
Collection of Other Taxes
In addition to regular property tax levies, the City is also authorized to impose various other taxes, including
those described below. Neither the State nor any municipal corporation of the State is authorized under the
Constitution to impose a tax on net income.
Local Sales and Use Tax. In addition to the State, the City imposes a sales and use tax as a percent of the selling
price on any retail sale or use of tangible personal property within the City, upon which the State also imposes
a sales and use tax. A portion of the total sales and use tax collected i s a local tax and is returned to the city or
county or certain other local jurisdictions where the sales transaction took place. The City’s sales and use tax is
collected by the State Department of Revenue (the “Department”) under a contract with the City that provides
for a deduction by the Department of 1% (not exceeding 2% of the tax collected) for the Department’s
administration costs. Of the remaining 99%, the Department distributes 15% to the County and distributes the
remaining 85% to the City for retail sales and use tax on a monthly basis. In 2013, the amount of the City’s
distribution was $3,279,622.
In addition to the 1% sales tax, the City receives a portion of a 1/10 of 1% sales tax for criminal justice
purposes. This tax is distributed with 10% going to the County and the remaining 90% distributed to cities
and the County based on population. The City received $259,803 in 2013 for this tax.
Streamlined Sales and Use. In 2003, the State Legislature approved legislation authorizing the State’s
membership in the Streamlined Sales and Use Tax Agreement (the “SSUTA”), in an effort to make sales and
use taxes in the State more uniform with other states. Congress has requi red that state sales taxes be more
uniform before Congress will permit taxation of interstate catalogue and Internet sales. In 2007, the State
Legislature adopted legislation fully conforming to the SSUTA. Effective July 1, 2008, the sales tax system
changed in the State from an origin-based system to a destination-based system. Under destination sourcing,
sales taxes on goods delivered to customers in the State are credited to the taxing jurisdiction where the goods
are delivered (as opposed to the point of sale) and the rate of the tax is determined by the local rate in the
destination taxing jurisdiction.
The State Legislature enacted certain provisions to mitigate net losses in sales and use tax collections of local
taxing jurisdictions resulting from the change to a destination-based system. To qualify, the local taxing
jurisdiction must be negatively impacted by the legislation and the local sales tax must be in effect before
July 1, 2008, among other requirements. Money for mitigation is subjec t to appropriation by the State
Legislature. In 2013, the amount of the mitigation for the impact of the SSUTA received by the City was
$97,310.
Utility Taxes. Utility taxes are taxes applied to utilities providing services in the City including City -owned
and privately-owned utilities. The City levies a tax of 5% on City owned utilities (Water, Sewer and
Stormwater) and 6% tax on telephone, electric and natural gas utilities. In addition, the City levies a tax of 8%
on solid waste disposal and cable television services.
The City collects revenues from the following major types of taxes: ad valorem property taxes, retails sales
and use taxes, utility taxes and others (including gambling taxes, leasehold excise taxes and admission taxes).
The following table shows the historical general fund collections from these major tax sources.
Historical General Fund Revenue Sources
Budget Actual Actual Actual Actual
2014 2013 2012 2011 2010
Source: City of Arlington.
In addition to these general fund tax revenues, the City collects a real estate excise taxes from property sales,
some of which goes directly towards the payment of general obligation debt service. A table showing
historical revenue from this source is as follows:
Budget Actual Actual Actual Actual
2014 2013 2012 2011 2010
Source: City of Arlington.
Authorized Investments
Chapter 35.39 RCW limits the investment by cities and towns of its inactive funds or other funds in excess of
current needs to the following authorized investments: United States bonds; United States certificates of
indebtedness; bonds or warrants of the S tate and any local government in the State; its own bonds or warrants
of a local improvement district which are within the protection of the local improvement guaranty fund law;
and any other investment authorized by law for any other taxing district or the State Treasurer. Under chapter
43.84 RCW, the State Treasurer may invest in non-negotiable certificates of deposit in designated qualified
public depositories; in obligations of the US government, its agencies and wholly owned corporations; in
bankers’ acceptances; in commercial paper; in the obligations of the federal home loan bank, federal national
mortgage association and other government corporations subject to statutory provisions and may enter into
repurchase agreements. Utility revenue bonds and warrants of any city and bonds or warrants of a local
improvement district are also eligible investments (RCW 35.39.030).
Money available for investment may be invested on an individual fund basis or may, unless otherwise
restricted by law, be commingled within one common investment portfolio. All income derived from such
investment may be either apportioned to and used by the various participating funds or for the benefit of the
general government in accordance with city ordinances or resolutions. Funds derived from the sale of bonds
or other instruments of indebtedness will be invested or used in such manner as the authorizing ordinances,
resolutions or bond covenants may lawfully prescribe.
Local Government Investment Pool
The State Treasurer’s Office administers the Washington State Local Government Investment Pool (the
“LGIP”), which invests money on behalf of more than 640 cities, counties and special taxing districts. In its
management of LGIP, the State Treasurer is required to adhere, at all times, to the principles appropriate for
the prudent investment of public funds. These are, in priority order, (i) the safety of principal; (ii) the
assurance of sufficient liquidity to meet cash flow demands; and (iii) to attain the highest possible yiel d within
the constraints of the first two goals. Historically, the LGIP has had sufficient liquidity to meet all cash flow
demands.
The LGIP, authorized by chapter 43.250 RCW, is a voluntary pool which provides its participants the
opportunity to benefit from the economies of scale inherent in pooling. It is also intended to offer participants
increased safety of principal and the ability to achieve a higher investment yield than would otherwise be
available to them. The pool is restricted to investments with maturities of one year or less, and the average life
typically is less than 90 days. Investments permitted under the pool’s guidelines include U.S. government and
agency securities, bankers’ acceptances, high quality commercial paper, repurchase and reverse repurchase
agreements, motor vehicle fund warrants, and certificates of deposit issued by qualified Washington State
depositories.
As of May 31, 2014, the City’s investments at market value totaled $17,428,678, 20 percent of which was
invested in the LGIP.
Authorized Investments for Bond Proceeds
In addition to the eligible investments discussed above, bond proceeds may also be invested in mutual funds
with portfolios consisting of U.S. government and guaranteed agency securities with aver age maturities of less
than four years; municipal securities rated in one of the four highest categories; and money market funds
consisting of the same, so long as municipal securities held in the fund(s) are in one of the two highest rating
categories of a nationally recognized rating agency. Bond proceeds may also be invested in shares of money
market funds with portfolios of securities otherwise authorized by law for investment by local governments
(RCW 39.59.030).
Financial Information
Comparative General Fund
Resources and Uses Arising from Cash Transactions
(Fiscal Years Ended December 31)
(1) In 2010, the Program Development Fund balance of $125,063 was added into the General Fund beginning cash balance.
(2) In 2009, the Recycling Fund balance of $21,989 was added into the General Fund beginning cash balance.
Source: City of Arlington.
Preliminary
2013 2012 2011 2010 2009 2008
Beginning Cash and Investments 553,433$ 22,891$ 474,190$ 478,276$ (1)289,109$ (2)452,007$
Operating Revenues
Taxes 8,952,185 8,619,811 8,230,965 7,959,680 7,239,817 7,496,817
Licenses and Permits 498,397 679,185 534,711 415,516 306,187 368,856
Intergovernmental Revenues 509,035 744,330 810,183 1,523,112 604,647 603,707
Charges for Goods and Services 1,029,968 2,565,326 2,732,811 2,443,562 2,329,636 1,715,365
Fines and Penalties 199,553 251,820 266,759 326,256 314,546 297,204
Miscellaneous Revenues 37,241 256,725 42,383 37,378 36,559 28,398
Other Financing Sources 12,785 4,900 169,402 4,048,253 1,636,857 671,698
Total Operating Revenues 11,239,164 13,122,097 12,787,213 16,753,757 12,468,249 11,182,045
Total Resources 11,792,597 13,144,988 13,261,403 17,232,033 12,757,358 11,634,052
Operating Expenditures
General Government 1,349,550 2,511,228 2,956,314 3,239,293 3,275,180 3,359,850
Public Safety 6,866,517 6,800,430 6,977,391 6,583,093 6,375,424 5,871,624
Utilities and Environment 292,871 597,394 515,856 643,232 688,844 29,009
Economic Environment 583,822 574,872 885,292 826,021 1,120,273 1,357,858
Culture and Recreation 397,127 354,226 460,887 522,785 616,884 679,402
Total Operating Expenditures 9,489,887 10,838,150 11,795,740 11,814,424 12,076,605 11,297,742
Debt Service 876,847 867,549 811,425 4,059,123 0 0
Capital Outlay 146,393 206,999 45,493 252,341 56,362 63,541
Total Expenditures 10,513,127 11,912,698 12,652,658 16,125,888 12,132,967 11,361,284
Other Financing Uses 707,385 650,000 562,577 621,238 250,149 45,989
Total Expenditures and Other Uses 11,220,512 12,562,698 13,215,235 16,747,126 12,383,116 11,407,272
Excess (Deficit) of Resources Over Uses 572,085 582,290 46,168 484,907 374,242 226,780
Non-revenues 218,050 303,064 187,810 256,571 255,827 310,426
Non-expenditures 148,220 331,921 211,087 267,288 276,857 270,086
Ending Net Cash and Investments 641,915$ 553,433$ 22,891$ 474,190$ 353,212$ (1)267,120$ (2)
Actual
Budget – General Fund Revenues & Expenditures
(Fiscal Years Ended December 31)
Source: City of Arlington.
Adopted Projected
2014 2015
Revenues
Taxes 8,951,100$ 10,189,000
Licenses and Permits 596,800 561,000
Intergovernmental Revenues 505,992 512,100
Charges for Services 2,263,588 2,284,588
Fines and Forfeits 320,200 320,200
Miscellaneous Revenues 18,750 20,750
Non-Revenues 259,000 259,000
Other Financing Sources 70,100 40,100
Total Operating Expenditures 12,985,530 14,186,738
Beginning Fund Balance 500,000 500,000
Total Revenues 13,485,530 14,686,738
Operating Expenditures
Salaries 6,199,068 6,321,467
Benefits 2,089,366 2,165,268
Supplies 127,600 116,150
Charges for Services 1,153,161 1,116,688
Intergovernmental 862,339 881,800
Non-Expenditures 259,000 259,000
Capital Outlay 57,600 37,800
Debt Service 872,720 923,380
Interfund Charges and Transfers 1,314,676 1,865,094
Transfer to Building Reserve 0 50,000
Transfer to Mandatory Reserve 50,000 50,000
Total Operating Expenditures 12,985,530 13,786,647
Ending Fund Balance 500,000 900,091
Total Expenditures 13,485,530$ 14,686,738$
The City
The City is a non-charter, code city incorporated in 1903. The City encompasses an area of 9.25 square miles in
northwestern Snohomish County along Interstate 5 and has a 2014 population of approximately ________.
The City operates under the laws of the State applicable to a code city with a Mayor-Council form of
government. City elected officials consist of the Mayor and seven council members. The six Council members
are elected to four-year terms, as is the Mayor. The seventh member is at-large and elected to a two-year term.
Council members serve staggered terms. The Council is responsible, among other things, for passing
ordinances and resolutions, adopting the budget, appointing committees, and adopting general policies and
goals for the City. The Mayor appoints, subject to Council approval, a City Administrator who serves as chief
administrator of the City and oversees the entire City government under the direction of the Mayor and the
policies of the Council. All City department managers report to the City Administrator.
The City is a general-purpose government and provides public safety, fire prevention, street improvement,
parks and recreation, health and social services, and general administrative services. In addition, the City
operates facilities for water supply/treatment/distribution, sewage collection/treatment, storm water (drainage)
collection and a municipal airport. Other local governments provide public education and library services.
The Council holds regular meetings the first and third Mondays of each month and workshop meetings on the
second and fourth Mondays, and special meetings as needed. All meetings are open to the public as provided
by law and agenda items are prepared in advance.
Principal City Officers
Current members of the Council are:
Member Position Term Expires
Barbara Tolbert Mayor January 1, 2016
Richard Butner Council Member January 1, 2016
Marilyn Oertle Council Member January 1, 2016
Debora Nelson Council Member January 1, 2018
Chris Raezer Council Member January 1, 2018
Jan Schuette Council Member January 1, 2018
Jesica Stickles Council Member January 1, 2018
Randy Tendering Council Member January 1, 2016
City Staff
Barbara Tolbert, Mayor. Ms. Tolbert was elected Mayor in November 2011 and took office on January 1, 2012.
She also serves at the Executive Director for the Arlington Fly-In. Ms. Tolbert studied Business Administration
at Grand Valley State University. Her current term expires on January 1, 2016.
Allen Johnson, City Administrator. Mr. Johnson was appointed as City Administrator in May, 2005. Mr. Johnson
holds a Masters Degree in Administration from the University of Missouri an d the University of Colorado.
Mr. Johnson has worked in public administration for over 30 years in the states of Colorado, Montana and
now Washington.
Kristin Banfield, Assistant City Administrator/City Clerk. Mrs. Banfield was appointed City Clerk in November,
2009. She served as City Administrator from January 2001 through June 2004, and also served as A ssistant to
the Administrator. She holds a Bachelor of Science, Public Administration from the University of Southern
California.
Jim Chase, Finance Director. Mr. Chase was appointed Finance Director in November, 2009. He was previously
with the City of Pasco, Washington for over 22 years, the last 10 years as Finance Manager. He attended
Whitworth College in Spokane, Washington.
Labor Relations
Approximately 129 full-time and part-time employees are currently employed by the City. The majority of
City employees who are eligible under State law to be represented by a labor organization are employed under
provisions of negotiated contracts with the bargaining units listed below. The City strives to complete
agreements with all groups in a timely manner, consistent with all applicable State law and to promote labor
relation policies mutually beneficial to management and employees. The City considers its relationships with
the bargaining units to be satisfactory.
No. of Employees
Union Represented Agreement Expires
IAFF Local 3728 (Fire) 27 December 31, 2014
Arlington Police Officers 24 December 31, 2014
AFSCME 48 December 25, 2014
Pension System
Substantially all of the City’s employees are enrolled in cost-sharing multiple-employer pension plans
administered by the State Department of Retirement Systems: Public Employees Retirement System (“PERS”)
and the Law Enforcement Officers and Fire Fighters Retirement System (“LEOFF”). Contributions by both
employees and employers are based on gross wages. PERS and LEOFF participants who joined the system by
September 30, 1977 are Plan 1 members. PERS participants who joined on or after October 1, 1977 and by
August 31, 2002 are Plan 2 members, unless they exercise an option to transfer to Plan 3. PERS participants
joining on or after September 1, 2002 have the irrevocable option of choosing membership in Pla n 2 or Plan 3.
LEOFF participants who joined on or after October 1, 1977 are Plan 2 members. PERS Plans 1 and 2 and
LEOFF are defined-benefit pension plans. PERS Plan 3 is a hybrid defined -benefit and defined-contribution
pension plan.
The following tables outline the contribution rates of employees and employers under PERS and LEOFF. In
2013, the City contributed $1,028,854 to PERS and $291,748 to LEOFF.
PERS Contribution Rates as of December 31, 2013
PERS Plan 1 PERS Plan 2 PERS Plan 3
(1)
(1) Includes a 0.18% administration fee.
LEOFF Contribution Rates as of December 31, 2013
Employee 0.00% 8.41%
Employer (1) 0.18% 5.23%
State 0.00% 3.36%
(1) Includes a 0.18% administration fee.
Information regarding all of these plans is presented in annual financial report of the State Department of
Retirement Systems, which may be obtained from:
Department of Retirement Systems
1025 East Union Street
P.O. Box 48380
Olympia, WA 98504-8380
Internet Address: www.drs.wa.gov (which website is not incorporated herein by reference)
While the City’s contributions in 2013 represented its full current liability under PERS and LEOFF, any
unfunded pension benefit obligations within the systems could be reflected in future years as higher
contribution rates. The website of the Office of the State Actuary includes information regarding the values
and funding levels of these retirement plans.
According to the Office of the State Actuary, as of June 30, 2012, PERS Plans 2 and 3 and LEOFF 1 and 2 and
PERS 2 had no unfunded actuarial accrued liability. However, during the years 2001 through 2010 the rates
adopted by the Legislature were lower than those that would have been required to produce actuarially
required contributions to PERS Plan 1, a closed plan with a large proportion of the retirees. According to a
report issued by the Office of the State Actuary in August 2013, and subject to the assumptions therein, the
total unfunded actuarial accrued liability of PERS Plan 1 was $3.847 billion (69% funded on an actuarial basis)
as of June 30, 2012. The assumptions used by the State Actuary in calculating the unfunded liability as of June
30, 2012 of PERS and LEOFF are 7.9 percent annual rate of investment return (7.5% for LEOFF—Plan 2), 3.75
percent salary increases, 3.0 percent inflation and 0.95 percent growth in membership (1.25% for LEOFF). To
report funded status, liabilities were valued using the “Projected Unit Credit” cost method and assets valued
using the actuarial value of assets.
Assets for one plan may not be used to fund benefits for another plan; however, all employers in PERS are
required to make contributions at rates (percentage of payroll) determined by the Offi ce of the State Actuary
every two years for the purpose of amortizing within a rolling 10 -year period the unfunded actuarial accrued
liability in PERS Plan 1. The State Legislature in 2009 established certain maximum contribution rates that
began in 2009 and continue until 2015 and certain minimum contribution rates that are to become effective in
2015 and remain in effect until the actuarial value of assets in PERS Plan 1 equal 100 percent of actuarial
accrued liability of PERS Plan 1. These rates are subject to change by future legislation enacted by the State
Legislature to address future changes in actuarial and economic assumptions and investment performance.
Other Post-Employment Benefits
In accordance with chapter 41.26 RCW, the City provides continuation of medical insurance coverage to
employees that retire under the LEOFF retirement system, which includes all police officers and fire fighters
who were hired prior to October 1, 1977. Medical coverage continues for the life of the retiree. The plan is a
closed, single-employer defined benefit healthcare plan administered by the City. As of December 31, 2013, six
retirees and no active employees received benefits, and a total of $63,494 was paid out for those benefits
during the year. The City’s annual other post-employment benefit (“OPEB”) cost is calculated based on the
annual required contribution (“ARC”), an amount actuarially determined in accordance with the parameters
of Governmental Accounting Standards Board (“GASB”) Statement 45. The ARC represents a level of funding
that, if paid on an ongoing basis, is projected to cover the normal cost each year and to amortize any unfunded
actuarial liabilities over a period not to exceed thirty years.
Insurance
The City is a member of the Washington Cities Insurance Authority (“WCIA”) of Washington and its
insurance pool (the “Pool”). WCIA is fully funded by its members, who make annual assessments on a
prospectively rated basis, as determined by an outside, independent actuary. The assessment covers loss, loss
adjustment and administrative expenses. WCIA retains the right to additionally assess the membership for
any funding shortfall. WCIA offers a combination of self-insurance and standard insurance to cover liability
and property risks and provides related risk management services.
Liability coverage is written on an occurrence basis, without deductibles. Coverage includes general,
automobile, police professional, public officials errors and omissions, stop gap and employee be nefits liability.
Limits are $4 million per occurrence in the self-insured layer, and $16 million per occurrence in the reinsured
excess layer. The excess layer is insured by the purchase of reinsurance and insurance and is subject to
aggregate limits. Total limits are $20 million per occurrence subject to aggregate and sub-limits in the excess
layer. The Board of Directors of WCIA determines the limits and terms of the coverage annually.
Insurance coverage for property, automobile physical damage, fidelity, inland marine, and boiler and
machinery are purchased on a group basis. Various deductibles apply by type of coverage. Property insurance
and auto physical damage are self-funded from the members’ deductible to $750,000, for all perils other tha n
flood and earthquake, and insured above that amount by the purchase of insurance.
Accounting and Budgeting Policies
The accounts of the City are organized on the basis of funds and account groups, each of which is considered a
separate accounting entity. Each fund is accounted for with a separate set of revenues and expenditures, as
appropriate. The City's resources are allocated to and accounted for in individual funds depending on their
intended purpose.
Annual appropriated budgets are adopted at the fund level, except in the general fund, where expenditures
are adopted at the department level. The budgets constitute the legal authority for expenditures at that level.
Annual appropriations for all funds lapse at the fiscal period end.
The Finance Director is authorized to transfer budgeted amounts between departments within any fund/object
within departments; however, any revisions that alter the total expenditures of a fund must be approved by
the City Council. The City Council approves all expenditures for payroll and claims.
Auditing of City Finances
Accounting systems and budgetary controls are prescribed by the Office of the State Auditor in accordance
with RCW 43.09.200 and RCW 43.09.230. State statutes require audits for cities to be conducted by the Office
of the State Auditor. The City complies with the systems and controls prescribed by the Office of the State
Auditor and establishes procedures and records which reasonably assure safeguarding of assets and the
reliability of financial reporting.
The State Auditor is required to examine the affairs of cities at least once every two years. The City i s audited
annually. The examination must include, among other things, the financial condition and resources of the
City, whether the laws and constitution of the State are being complied with, and the methods and accuracy of
the accounts and reports of the City. Reports of the auditor’s examinations are required to be filed in the office
of the State Auditor and in the finance department of the City.
The audited financial statements of the City for the year ended December 31, 201 2, attached as Appendix C,
are incorporated by reference to this Official Statement.
Demographic Information
Incorporated in 1903, the City is located in northern Snohomish County
approximately 10 miles north of Everett and 40 miles north of Seattle. The City limits
cover an area of approximately 9.25 square miles, and is roughly bounded by the
Stillaguamish River and its flood plain on the north-northwest. The City of
Marysville lies to the south and the Tulalip Indian Reservation to the southwest.
Further east up the Stillaguamish Valley is the Town of Darrington.
The City and the immediate area is primarily suburban and rural residential with
supporting retail and commercial enterprises. Light industrial and manufacturing
businesses are located in the central portions of the City around the city-owned
Arlington Airport.
Population
2014
2013 730,500 18,270 104,200
2012 722,900 17,970 103,300
2011 717,000 17,930 103,100
2010(1) 713,335 17,926 103,019
(1) Official 2010 U.S. Census figure.
Source: Washington State Office of Financial Management, June 2014.
Income. Historic personal income and per capita income levels for the County and the State are shown below:
Total Personal and Per Capita Income
2012 $33,570,183 $45,796 $317,574,707 $46,045
2011 32,343,174 44,755 303,087,834 44,420
2010 30,355,325 42,420 286,743,785 42,521
2009 29,950,211 42,404 280,778,028 42,112
2008 30,712,925 44,215 289,801,024 44,162
Source: U.S. Department of Commerce, Bureau of Economic Analysis, May 2014.
Snohomish County
Washington
Median Household Income. Median household income estimation is based on 1990 and 2000 Census data, and on
the Census Bureau's American Community Surveys' estimates for 2006-2010.
Year
Snohomish
County
State of
Washington
(1)
(2)
(1) The Revenue Forecast Council's November 2013 forecast of the state personal income is used in the projection of 2012
median household income.
(2) In addition to the state personal income data published by BEA, the payroll data compiled by the state Employment
Security Department are used in the Preliminary estimates of 2010 median household income.
Source: Washington State Department of Revenue, May 2014.
Taxable Retail Sales. Taxable retail sales reflect only those sales subject to retail sales tax. Historic taxable retail
sales for the County and the City of Everett are shown below:
Taxable Retail Sales
2013(1) $ 10,764,550,209 $ 374,821,421
2012 9,970,619,243 352,324,480
2011 9,392,065,498 339,677,936
2010 9,327,727,607 335,207,293
2009 9,275,209,987 335,217,861
(1) Unofficial figure through fourth quarter.
Source: Washington State Department of Revenue, June 2014.
Building Permits. The number and valuation of new single-family and multi-family residential building
permits in the County are listed below:
Snohomish County
Residential Building Permits
New Single Family Units New Multi-Family Units Total
Year Number Construction Cost Number Construction Cost Construction Cost
(1)
(1) Estimates with imputations through March.
Source: U.S. Bureau of the Census, May 2014.
Employment. Major employers located within the County include the following:
Snohomish County
2014 Major Employers
The Boeing Company Aircraft Manufacturing 40,000
Naval Station Everett U.S. Navy Base 6,350
Washington State (includes colleges) State Government 5,400
Providence Regional Medical Center Medical Services 3,500
Tulalip Tribes Enterprises Gaming, Real Estate, Gov't Services 3,500
Snohomish County Government County Government 2,700
The Everett Clinic Healthcare 2,500
Premera Blue Cross Heath Insurer 2,400
Walmart Retail 2,056
Everett School District School District 2,025
Philips Medical Systems Ultrasound Technology 2,000
Edmonds School District School District 1,865
Safeway Retail - Grocery 1,700
Swedish Edmonds Hospital Healthcare 1,700
Fred Meyer Retail - Grocery 1,600
Fluke Corp. (Danaher) Electronic Test & Measurement 1,200
Marysville School District School District 1,200
Albertson's Retail - Grocery 1,200
City of Everett City Government 1,136
Aviation Technical Services Aircraft Repair / Maintenance / Parts 1,000
Source: Economic Development Council of Snohomish County and InfoUSA, May 2014.
Employment within the County is described in the following tables.
Civilian Labor Force data is based on household surveys of residents. NAICS data are estimates based on
surveys of employers and benchmarked based on covered employment as reported by all employers.
Snohomish County
Nonagricultural Wage & Salary Workers(1)
and Labor Force and Employment Data
Annual Average
(2)
Civilian Labor Force 397,330 390,210 388,250 386,390 389,310
Total Employment 374,730 367,430 358,940 350,280 348,260
Total Unemployment 22,600 22,780 29,310 36,110 41,050
Percent of Labor Force 5.7% 5.8% 7.5% 9.3% 10.5%
(3)2014(2) 2013 2012 2011 2010
(1) Excludes proprietors, self-employed, members of the armed services, workers in private households, and agriculture.
Includes all full- and part-time wage and salary workers receiving pay during the pay period including the 12th of the
month.
(2) Data through April 2014.
(3) North American Industry Classification System.
Source: Washington State Employment Security Department, May 2014.
Initiative and Referendum
Under the State Constitution, the voters of the State have the ability to initiate legislation and modify existing
legislation through the powers of initiative and referendum, respectively. The initiative power in the State
may not be used to amend the St ate Constitution. Initiatives and referenda are submitted to the voters upon
receipt of a petition signed by at least 8% (initiative) and 4% (referenda) of the number of voters registered and
voting for the office of Governor at the preceding regular gubernatorial election. Any law approved in this
manner by a majority of the voters may not be amended or repealed by the State Legislature within a period of
two years following enactment, except by a vote of two-thirds of all the members elected to each house of the
Legislature. After two years, the law is subject to amendment or repeal by the Legislature in the same manner
as other laws.
Tax Matters
Exclusion From Gross Income
In the opinion of Bond Counsel, under existing federal law and assuming compli ance by the City with
applicable requirements of the Internal Revenue Code of 1986, as amended (the “Code”), that must be satisfied
subsequent to the issue date of the Bonds, interest on the Bonds will be excluded from gross income for federal
income tax purposes and is not an item of tax preference for purposes of the alternative minimum tax
applicable to individuals.
Continuing Requirements
The City is required to comply with certain requirements of the Code after the date of issuance of the Bonds in
order to maintain the exclusion of the interest on the Bonds from gross income for federal income tax
purposes, including, without limitation, requirements concerning the qualified use of Bond proceeds and the
facilities financed or refinanced with Bond proce eds, limitations on investing gross proceeds of the Bonds in
higher yielding investments in certain circumstances, and the requirement to comply with the arbitrage rebate
requirement to the extent applicable to the Bonds. The City has covenanted in the Bo nd Ordinance to comply
with those requirements, but if the City fails to comply with those requirements, interest on the Bonds could
become taxable retroactive to the date of issuance of the Bonds. Bond Counsel has not undertaken and does
not undertake to monitor the City’s compliance with such requirements.
Alternative Minimum Tax
Interest on the Bonds is not an item of tax preference under the Code and is not subject to the federal
alternative minimum tax applicable to individuals. However, under Secti on 55 of the Code, tax exempt
interest, including interest on the Bonds, received by corporations is taken into account in the computation of
adjusted current earnings for purposes of the alternative minimum tax applicable to corporations (as defined
for federal income tax purposes). Under the Code, alternative minimum taxable income of a corporation will
be increased by 75% of the excess of the corporation's adjusted current earnings (including any tax exempt
interest) over the corporation's alternative minimum taxable income determined without regard to such
increase. A corporation's alternative minimum taxable income, so computed, that is in excess of an exemption
of $40,000, which exemption will be reduced (but not below zero) by 25% of the amount by w hich the
corporation's alternative minimum taxable income exceeds $150,000, is then subject to a 20% minimum tax.
A small business corporation is exempt from the corporate alternative minimum tax for any taxable year
beginning after December 31, 1997, if its average annual gross receipts during the three-taxable-year period
beginning after December 31, 1993, did not exceed $5,000,000, and its average annual gross receipts during
each successive three-taxable-year period thereafter ending before the relevant taxable year did not exceed
$7,500,000.
Tax on Certain Passive Investment Income of S Corporations
Under Section 1375 of the Code, certain excess net passive investment income, including interest on the Bonds,
received by an S corporation (a corporation treated as a partnership for most federal tax purposes) that has
Subchapter C earnings and profits at the close of the taxable year may be subject to federal income taxation at
the highest rate applicable to corporations if more than 25% of the gross receipts of such S corporation is
passive investment income.
Foreign Branch Profits Tax
Interest on the Bonds may be subject to the foreign branch profits tax imposed by Section 884 of the Code
when the Bonds are owned by, and effectively connected with a trade or business of, a United States branch of
a foreign corporation.
Possible Consequences of Tax Compliance Audit
The Internal Revenue Service (the “IRS”) has established a general audit program to determine whether
issuers of tax-exempt obligations, such as the Bonds, are in compliance with requirements of the Code that
must be satisfied in order for interest on those obligations to be, and continue to be, excluded from gross
income for federal income tax purposes. Bond Counsel cannot predict whether the IRS would commence an
audit of the Bonds. Depending on all the facts and circumstances and the type of audit involved, it is possible
that commencement of an audit of the Bonds could adversely affect the market value and liquidity of the
Bonds until the audit is concluded, regardless of its ultimate outcome.
Certain Other Federal Tax Consequences
Bonds “Qualified Tax-Exempt Obligations” for Financial Institutions. Section 265 of the Code generally provides
that 100% of any interest expense incurred by banks and other financial institutions that is allocable to tax -
exempt obligations acquired after August 7, 1986, will be disallowed as a tax deduction. However, if the tax-
exempt obligations are obligations other than certain private activity bonds, are issued by a governmental unit
that, together with all entities subordinate to it, does not reasonably anticipate issuing more than $10,000,000
of tax-exempt obligations (other than certain private activity bonds and other obligations not required to be
included in such calculation) in the current calendar year, and are designated by the governmental unit a s
“qualified tax-exempt obligations,” only 20% of any interest expense deduction allocable to those obligations
will be disallowed.
The City is a governmental unit that, together with all subordinate entities, reasonably anticipates issuing less
than $10,000,000 of tax exempt obligations (other than private activity bonds and other obligations not
required to be included in such calculation) during the current calendar year and has designated the Bonds as
“qualified tax exempt obligations” for purposes of the 80% financial institution interest expense deduction.
Therefore, only 20% of the interest expense of a financial institution allocable to the Bonds will be disallowed
for federal income tax purposes.
Reduction of Loss Reserve Deductions for Property and Casualty Insurance Companies. Under Section 832 of the
Code, interest on the Bonds received by property and casualty insurance companies will reduce tax deductions
for loss reserves otherwise available to such companies by an amount equal to 15 perce nt of tax exempt
interest received during the taxable year.
Effect on Certain Social Security and Retirement Benefits. Section 86 of the Code requires recipients of certain
Social Security and certain Railroad Retirement benefits to take receipts or accr uals of interest on the Bonds
into account in determining gross income.
Other Possible Federal Tax Consequences. Receipt of interest on the Bonds may have other federal tax
consequences as to which prospective purchasers of the Bonds may wish to consult their own tax advisors.
Potential Future Federal Tax Law Changes. From time to time, there are legislative proposals in Congress which,
if enacted, could require changes in the description of federal tax matters relating to the Bonds set forth above
or adversely affect the market value of the Bonds. It cannot be predicted whether future legislation may be
proposed or enacted that would affect the federal tax treatment of interest received on the Bonds. Prospective
purchasers of the Bonds should consult with their own tax advisors regarding any proposed or pending
legislation that would change the federal tax treatment of interest on the Bonds.
Preservation of Tax Exemption
The City has covenanted in the Bond Ordinance that it will take all actions nece ssary to prevent interest on the
Bonds from being included in gross income for federal income tax purposes, and it will neither take any action
nor make or permit any use of proceeds of the Bonds or other funds of the City treated as proceeds of the
Bonds at any time during the term of the Bonds which will cause interest on the Bonds to be included in gross
income for federal income tax purposes.
Rating
As noted on the cover page of this Official Statement, the City has applied for a rating for the Bonds from
Standard & Poor’s Rating Services, a division of the McGraw-Hill Companies, Inc. When and if obtained, the
rating will reflect only the views of the rating agency and an explanation of the significance of the rating may
be obtained from the rating agency. There is no assurance that the rating, once obtained, will be retained for
any given period of time or that the rating will not be revised downward or withdrawn entirely by the rating
agency if, in its judgment, circumstances so warrant. Any such downward revision or withdrawal of the
rating will be likely to have an adverse effect on the market price of the Bonds.
Continuing Disclosure
To meet the requirements of United States Securities and Exchange Commission (“SEC”) Rule 15c2-12(b)(5)
(the “Rule”), as applicable to a participating underwriter for the Bonds, the City will undertake (the
“Undertaking”) for the benefit of holders of the Bonds to provide or cause to be provided, either directly or
through a designated agent, to the Municipal Securities Rulemaking Board (“MSRB”), in an electronic format
as prescribed by the MSRB, accompanied by identifying information as prescribed by the MSRB: (a) annual
financial information and operating data of the type included in this Official Statement as generally described
below (“annual financial information”) and (b) timely notice (not in excess of ten business days after the
occurrence of the event) of the occurrence of any of the following events with respect to the Bonds:
(i) principal and interest payment delinquencies; (ii) non-payment related defaults, if material;
(iii) unscheduled draws on debt service reserves reflecting financial difficulties; (iv) unscheduled draws on
credit enhancements reflecting financial difficulties; (v) substitution of credit or liquidity providers, or their
failure to perform; (vi) adverse tax opinions, the issuance by the Internal Revenue Service of proposed or final
determinations of taxability, Notice of Proposed Issue (IRS Form 5701 – TEB) or other material notices or
determinations with respect to the tax status of the Bonds; (vii) modifications to rights of holders of the Bonds,
if material; (viii) Bond calls (other than scheduled mandatory redemption of Term Bonds), if material, and
tender offers; (ix) defeasances; (x) release, substitution, or sale of property securing repayment of the Bonds, if
material; (xi) rating changes; (xii) bankruptcy, insolvency, receivership or similar event of the City , as such
“Bankruptcy Events” are defined in Rule 15c2-12; (xiii) the consummation of a merger, consolidation, or
acquisition involving the City or the sale of all or substantially all of the assets of the City other than in the
ordinary course of business, the entry into a definitive agreement to u ndertake such an action or the
termination of a definitive agreement relating to any such actions, other than pursuant to its terms, if material;
and (xiv) appointment of a successor or additional trustee or the change of name of a trustee, if material.
The City will also provide to the MSRB timely notice of a failure by the City to provide required annual
financial information on or before the date specified below.
Type of Annual Financial Information Undertaken to be Provided . The annual financial information that the City
undertakes to provide will consist of: (1) annual financial statements prepared (except as noted in the financial
statements) in accordance with applicable generally accepted accounting principles applicab le to local
governmental units of the State such as the City, as such principles may be changed from time to time, which
statements may be unaudited, provided, that if and when audited financial statements are prepared and
available they will be provided; (2) principal amount of general obligation bonds outstanding at the end of the
applicable fiscal year; (3) assessed valuation for that fiscal year; and (4) property tax levy amounts and rates
for that fiscal year.
The annual financial information that the City undertakes to provide will be provided to the MSRB not later
than the last day of the ninth month after the end of each fiscal year of the City (currently, a fiscal year ending
December 31), as such fiscal year may be changed as permitted or required by State law, commencing with the
City’s fiscal year ending December 31, 2014.
The annual financial information may be provided in a single or multiple documents and may be incorporated
by specific reference to documents available to the public on the Internet website of the MSRB or filed with the
SEC.
Amendment of Undertaking. The Undertaking is subject to amendment after the primary offering of the Bonds
without the consent of any holder of any Bond, or of any broker, dealer, municipal securities deal er,
participating underwriter, rating agency or the MSRB, under the circumstances and in the manner permitted
by the Rule. The City will give notice to the MSRB of the substance (or provide a copy) of any amendment to
the Undertaking and a brief statement of the reasons for the amendment. If the amendment changes the type
of annual financial information to be provided, the annual financial information containing the amended
financial information will include a narrative explanation of the effect of that change in the type of information
to be provided.
Beneficiaries. The Undertaking evidenced by this section shall inure to the benefit of the City and the Beneficial
Owner holder of a Bond, and shall not inure to the benefit of or create any rights in any o ther person.
Termination of Undertaking. The City’s obligations under the Undertaking shall terminate upon the legal
defeasance of all of the Bonds. In addition, the City’s obligations under the Undertaking shall terminate if the
provisions of Rule 15c2-12 that require the City to comply with the Undertaking become legally inapplicable in
respect of the Bonds for any reason, as confirmed by an opinion of Bond Counsel delivered to the City, and the
City provides timely notice of such termination to the MSRB.
Remedy for Failure to Comply with Undertaking. If the City or any other obligated person fails to comply with the
Undertaking, the City will proceed with due diligence to cause such noncompliance to be corrected as soon as
practicable after the City learns of that failure. No failure by the City or other obligated person to comply with
the Undertaking will constitute a default in respect of the Bonds. The sole remedy of any holder of a Bond will
be to take such actions as that holder deems necessary, including seeking an order of specific performance
from an appropriate court, to compel the City or other obligated person to comply with the Undertaking.
Other Continuing Disclosure Undertakings of the City. The City has entered into undertakings to provide annual
information and the notice of the occurrence of certain events with respect to all bonds issued by the City and
is in compliance with all such undertakings.
Legal and Underwriting
Approval of Counsel
Legal matters incident to the authorization, issuance and sale of Bonds by the City are subject to the approving
legal opinion of Foster Pepper PLLC, Seattle, Washington, Bond Counsel. The form of the opinion of Bond
Counsel with respect to the Bonds is attached as Appendix A. The opinion of Bond Counsel is given based on
factual representations made to Bond Counsel, and under existing law, as of the date of initial delivery of the
Bonds, and Bond Counsel assumes no obligation to revise or supplement its opinion to reflect any facts or
circumstances that may thereafter come to its attention, or any changes in law that may thereafter occur. The
opinion of Bond Counsel is an expression of its professional judgment on the matters expressly addressed in
its opinion and does not constitute a guarantee of result. Bond Counsel will be compensated only upon the
issuance and sale of the Bonds.
Absence of Material Litigation
There is no litigation pending or threatened questioning the validity of the Bonds nor t he power and authority
of the City to issue the Bonds. There is no litigation pending or threatened which would materially affect the
City’s ability to meet debt service requirements on the Bonds. Because of the nature of its activities, the City is
subject to certain pending legal actions which arise in the ordinary course of business. Based on the
information presently known, the City believes that the ultimate liability for any of such legal actions will not
be material to the financial position of the City.
Underwriting
The Bonds are being purchased by Piper Jaffray & Co. (the “Underwriter”). The purchase contract provides
that the Underwriter will purchase all of the Bonds, if any are purchased, at a price of _____ percent of the par
value of the Bonds. The Bonds will be reoffered at an average price of _____ percent of the par value of the
Bonds. After the initial public offering, the public offering prices may be varied from time to time.
Piper Jaffray & Co. and Pershing LLC, a subsidiary of The Bank of New York Mellon Corporation, entered into
an agreement (the “Agreement”) which enables Pershing LLC to distribute certain new issue municipal
securities underwritten by or allocated to Piper Jaffray & Co., inc luding the Bonds. Under the Agreement,
Piper Jaffray & Co. will share with Pershing LLC a portion of the fee or commission paid to Piper Jaffray & Co.
Piper Jaffray & Co. has entered into a distribution agreement (“Distribution Agreement”) with Charles
Schwab & Co., Inc. (“CS&Co”) for the retail distribution of certain securities offerings at the original issue
prices. Pursuant to the Distribution Agreement, CS&Co. may purchase Bonds from Piper Jaffray & Co. at the
original issue price less a negotiated portion of the selling concession applicable to any Bonds that CS&Co.
sells.
Conflicts of Interest
Some or all of the fees of the Underwriter and Bond Counsel are contingent upon the issuance and sale of the
Bonds. Furthermore, Bond Counsel from time to time serves as counsel to the Underwriter with respect to
issuers other than the City and transactions other than the issuance of the Bonds. None of the Council
members or other officers of the City have interests in the issuance of the Bonds that are pr ohibited by
applicable law.
Concluding Statement
All estimates, assumptions, statistical information and other statements contained herein, while taken from
sources considered reliable, are not guaranteed by the City or the Underwriter. So far as any sta tement herein
includes matters of opinion, or estimates of future expenses and income, whether or not expressly so stated,
they are intended merely as such and not as representations of fact.
The information contained herein should not be construed as representing all conditions affecting the City or
the Bonds. Additional information may be obtained directly from the City or the Underwriter.
The foregoing statements relating to the Bond Ordinance and other documents are in all respects subject to
and qualified in their entirety by provisions of such documents.
This Official Statement, starting with the cover page and all subsequent pages, including any appendices,
comprise the entire Official Statement, which has been approved by the City. The City has represented to the
Underwriter that the portions of this Official Statement directly pertaining to the City neither contain any
misrepresentation of material fact nor omit any material fact necessary to understand the financial, economic
or legal nature of the City or any information presented herein.
Appendix A
Form of the Opinion of Bond Counsel
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Appendix B
Book-Entry Transfer System
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The Depository Trust Company
A subsidiary of The Depository Trust & Clearing Corporation
Sample Offering Document Language
Describing DTC and Book-Entry-Only Issuance
1. The Depository Trust Company (“DTC”), New York, NY, will act as securities
depository for the securities (the “Securities”). The Securities will be issued as fully-registered
securities registered in the name of Cede & Co. (D TC’s partnership nominee) or such other name as
may be requested by an authorized representative of DTC. One fully-registered Security certificate
will be issued for [each issue of] the Securities, [each] in the aggregate principal amount of such
issue, and will be deposited with DTC. [If, however, the aggregate principal amount of [any] issue
exceeds $500 million, one certificate will be issued with respect to each $500 million of principal
amount, and an additional certificate will be issued with respect to any remaining principal amount of
such issue.]
2. DTC, the world’s largest securities depository, is a limited-purpose trust company
organized under the New York Banking Law, a “banking organization” within the meaning of the
New York Banking Law, a member of the Federal Reserve System, a “clearing corporation” within
the meaning of the New York Uniform Commercial Code, and a “clearing agency” registered
pursuant to the provisions of Section 17A of the Securities Exchange Act of 1934. DTC holds and
provides asset servicing for over 3.5 million issues of U.S. and non-U.S. equity issues, corporate and
municipal debt issues, and money market instruments (from over 100 countries) that DTC’s
participants (“Direct Participants”) deposit with DTC. DTC also facilitates the post-trade settlement
among Direct Participants of sales and other securities transactions in deposited securities, through
electronic computerized book-entry transfers and pl edges between Direct Participants’ accounts. This
eliminates the need for physical movement of securities certificates. Direct Participants include both
U.S. and non-U.S. securities brokers and dealers, banks, trust companies, clearing corporations, and
certain other organizations. DTC is a wholly-owned subsidiary of The Depository Trust & Clearing
Corporation (“DTCC”). DTCC is the holding company for DTC, National Securities Clearing
Corporation and Fixed Income Clearing Corporation, all of which are registered clearing agencies.
DTCC is owned by the users of its regulated subsidiaries. Access to the DTC system is also available
to others such as both U.S. and non-U.S. securities brokers and dealers, banks, trust companies, and
clearing corporations that clear through or maintain a custodial relationship with a Direct P articipant,
either directly or indirectly ("Indirect Participants"). DTC has a Standard & Poor’s rating of AA+.
The DTC Rules applicable to its Participants are on file with the Securities and Exchange
Commission. More information about DTC can be found at www.dtcc.com.
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SOL 08-10-11
3. Purchases of Securities under the DTC system must be m ade by or through Direct
Participants, which will receive a credit for the Securities on DTC’s records. The ownership interest of
each actual purchaser of each Security (“Beneficial Owner”) is in turn to be recorded on the Direct
and Indirect Participants’ records. Beneficial Owners will not receive written confirmation from
DTC of their purchase. Beneficial Owners are, however, expected to receive written confirmations
providing details of the transaction, as well as periodic statements of their holdings, from the Direct
or Indirect Participant through which the Beneficial Owner entered into the transaction. Transfers of
ownership interests in the Securities are to be accomplished by entries made on the books of Direct
and Indirect Participants acting on behalf of Beneficial Owners. Beneficial Owners will not receive
certificates representing their ownership interests in Securities, except in the event that use of the
book-entry system for the Securities is discontinued.
4. To facilitate subsequent transfers, all Securities deposited by Direct Participants with
DTC are registered in the name of DTC’s partnership nominee, Cede & Co., or such other name as
may be requested by an authorized representative of DTC. The deposit of Securities with DTC and
their registration in the name of Cede & Co. or such other DTC nominee do not effect any change in
beneficial ownership. DTC has no knowledge of the actual Beneficial Owners of the Securities;
DTC’s records reflect only the identity of the Direct Participants to whose accounts such Securities
are credited, which may or may not be the Beneficial Owners. The Direct and Indirect Participants
will remain responsible for keeping account of their holdings on behalf of their customers.
5. Conveyance of notices and other communications by DTC to Direct Participants, by
Direct Participants to Indirect Participants, and by Direct Participants and Indirect Participants to
Beneficial Owners will be governed by arrangements among them, subject to any statutory or
regulatory requirements as may be in effect from time to time. [Beneficial Owners of Securities may
wish to take certain steps to augment the transmission to them of notices of significant events with
respect to the Securities, such as redem ptions, tenders, defaults, and proposed amendments to the
Security documents. For example, Beneficial Owners of Securities may wish to ascertain that the
nominee holding the Securities for their benefit has agreed to obtain and transmit notices to
Beneficial Owners. In the alternative, Beneficial Owners m ay wish to provide their names and
addresses to the registrar and request that copies of notices be provided directly to them.]
6. Redemption notices shall be sent to DTC. If less than all of the Securities within an
issue are being redeemed, DTC’s practice is to determine by lot the amount of the interest of each
Direct Participant in such issue to be redeemed.
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7. Neither DTC nor Cede & Co. (nor any other DTC nominee) will consent or vote with
respect to Securities unless authorized by a Direct Participant in accordance with DTC’s MMI
Procedures. Under its usual procedures, DTC mails an Omnibus Proxy to Issuer as soon as possible
after the record date. The Omnibus Proxy assigns Cede & Co.’s consenting or voting rights to those
Direct Participants to whose accounts Securities are credited on the record date (identified in a listing
attached to the Omnibus Proxy).
8. Redemption proceeds, distributions, and dividend payments on the Securities will be
made to Cede & Co., or such other nominee as may be requested by an authorized representative of
DTC. DTC’s practice is to credit Direct Participants’ accounts upon DTC’s receipt of funds and
corresponding detail information from Issuer or Agent, on payable date in accordance with their
respective holdings shown on DTC’s records. Payments by Participants to Beneficial Owners will be
governed by standing instructions and customary practices, as is the case with securities held for the
accounts of customers in bearer form or registered in “street name,” and will be the responsibility of
such Participant and not of DTC, Agent, or Issuer, subject to any statutory or regulatory requirements
as may be in effect from time to time. Payment of redemption proceeds, distributions, and dividend
payments to Cede & Co. (or such other nominee as may be requested by an authorized representative
of DTC) is the responsibility of Issuer or Agent, disbursement of such payments to Direct
Participants will be the responsibility of DTC, and disbursement of such payments to the Beneficial
Owners will be the responsibility of Direct and Indirect Participants.
9. A Beneficial Owner shall give notice to elect to have its Securities purchased or
tendered, through its Participant, to [Tender/Remarketing] Agent, and shall effect delivery of such
Securities by causing the Direct Participant to transfer the Participant’s interest in the Securities, on
DTC’s records, to [Tender/Remarketing] Agent. The requirement for physical delivery of Securities in
connection with an optional tender or a m andatory purchase will be deemed satisfied when the
ownership rights in the Securities are transferred by Direct Participants on DTC’s records and
followed by a book-entry credit of tendered Securities to [Tender/Remarketing] Agent’s DTC
account.
10. DTC may discontinue providing its services as depository with respect to the Securities at
any time by giving reasonable notice to Issuer or Agent. Under such circumstances, in the event that
a successor depository is not obtained, Security certificates are required to be printed and delivered.
11. Issuer may decide to discontinue use of the system of book-entry-only transfers through
DTC (or a successor securities depository). In that event, Security certificates will be printed and
delivered to DTC.
12. The information in this section concerning DTC and DTC’s book-entry system has
been obtained from sources that Issuer believes to be reliable, but Issuer takes no responsibility for
the accuracy thereof.
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Appendix C
2012 Audited Financial Statements
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51293098.5
CITY OF ARLINGTON, WASHINGTON
ORDINANCE NO. ______
AN ORDINANCE of the City of Arlington, Washington, providing for the
issuance, sale and delivery of not to exceed $9,000,000 aggregate principal
amount of limited tax general obligation refunding bonds to refund the City’s
outstanding Limited Tax General Obligation Bonds, 2004, to prepay the City’s
Limited Tax General Obligation Bond, 2009, and to pay the costs of issuance and
sale of the bonds; fixing or setting parameters with respect to certain terms and
covenants of the bonds; appointing the City’s designated representative to
approve the final terms of the sale of the bonds; and providing for other related
matters.
Passed July 7, 2014
This document prepared by:
Foster Pepper PLLC
1111 Third Avenue, Suite 3400
Seattle, Washington 98101
(206) 447-4400
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TABLE OF CONTENTS*
Section 1. Definitions............................................................................................................... 1
Section 2. Findings and Determinations .................................................................................. 4
Section 3. Authorization of Bonds ........................................................................................... 5
Section 4. Description of the Bonds; Appointment of Designated Representative ................. 5
Section 5. Bond Registrar; Registration and Transfer of Bonds .............................................. 7
Section 6. Form and Execution of Bonds ................................................................................ 8
Section 7. Payment of Bonds ................................................................................................... 8
Section 8. Bond Account ......................................................................................................... 8
Section 9. Redemption Provisions and Purchase of Bonds ..................................................... 9
Section 10. Failure To Pay Bonds............................................................................................ 10
Section 11. Pledge of Taxes ..................................................................................................... 10
Section 12. Tax Covenants; Designation of Bonds as “Qualified Tax-Exempt
Obligations” .......................................................................................................... 10
Section 13. Refunding or Defeasance of the Bonds ................................................................ 11
Section 14. Refunding of the Refunded Bonds ........................................................................ 12
Section 15. Call for Redemption of the Refunded Bonds ........................................................ 13
Section 16. Findings with Respect to Refunding ..................................................................... 14
Section 17. Sale and Delivery of the Bonds. ........................................................................... 14
Section 18. Official Statement ................................................................................................. 14
Section 19. Continuing Disclosure .......................................................................................... 15
Section 20. Supplemental and Amendatory Ordinances.......................................................... 17
Section 21. General Authorization and Ratification ................................................................ 17
Section 22. Severability ........................................................................................................... 18
Section 23. Effective Date of Ordinance ................................................................................. 18
*The cover page, table of contents and section headings of this ordinance are for convenience of reference only,
and shall not be used to resolve any question of interpretation of this ordinance.
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CITY OF ARLINGTON, WASHINGTON
ORDINANCE NO. _______
AN ORDINANCE of the City of Arlington, Washington, providing for the
issuance, sale and delivery of not to exceed $9,000,000 aggregate principal
amount of limited tax general obligation refunding bonds to refund the City’s
outstanding Limited Tax General Obligation Bonds, 2004, to prepay the City’s
Limited Tax General Obligation Bond, 2009, and to pay the costs of issuance and
sale of the bonds; fixing or setting parameters with respect to certain terms and
covenants of the bonds; appointing the City’s designated representative to
approve the final terms of the sale of the bonds; and providing for other related
matters.
THE CITY COUNCIL OF THE CITY OF ARLINGTON, WASHINGTON, DO
ORDAIN AS FOLLOWS:
Section 1. Definitions. As used in this ordinance, the following capitalized terms
shall have the following meanings:
(a) “Acquired Obligations” means those United States Treasury Certificates of
Indebtedness, Notes, and Bonds--State and Local Government Series and other direct,
noncallable obligations of the United States of America purchased to accomplish the refunding
of the Refunded Bonds as authorized by this ordinance.
(b) “Authorized Denomination” means $5,000 or any integral multiple thereof within
a maturity of a Series.
(c) “Beneficial Owner” means, with respect to a Bond, the owner of any beneficial
interest in that Bond.
(d) “Bond” means each bond issued pursuant to and for the purposes provided in this
ordinance.
(e) “Bond Counsel” means the firm of Foster Pepper PLLC, its successor, or any
other attorney or firm of attorneys selected by the City with a nationally recognized standing as
bond counsel in the field of municipal finance.
(f) “Bond Account” means the Limited Tax General Obligation Refunding Bond
Account, 2014, of the City created for the payment of the principal of and interest on the Bonds.
(g) “Bond Purchase Contract” means an offer to purchase a Series of the Bonds,
setting forth certain terms and conditions of the issuance, sale and delivery of those Bonds,
which offer is authorized to be accepted by the Designated Representative on behalf of the City,
if consistent with this ordinance.
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(h) “Bond Register” means the books or records maintained by the Bond Registrar for
the purpose of identifying ownership of each Bond.
(i) “Bond Registrar” means the Fiscal Agent, or any successor bond registrar
selected by the City.
(j) “City” means the City of Arlington, Washington, a municipal corporation duly
organized and existing under the laws of the State.
(k) “City Council” means the legislative authority of the City, as duly and regularly
constituted from time to time.
(l) “Code” means the United States Internal Revenue Code of 1986, as amended, and
applicable rules and regulations promulgated thereunder.
(m) “DTC” means The Depository Trust Company, New York, New York, or its
nominee.
(n) “Designated Representative” means the officer of the City appointed in Section 4
of this ordinance to serve as the City’s designated representative in accordance with
RCW 39.46.040(2).
(o) “Final Terms” means the terms and conditions for the sale of a Series of the
Bonds including the amount, date or dates, denominations, interest rate or rates (or mechanism
for determining interest rate or rates), payment dates, final maturity, redemption rights, price, and
other terms or covenants, including minimum savings for refunding bonds.
(p) “Fiscal Agent” means the fiscal agent of the State, as the same may be designated
by the State from time to time.
(q) “Government Obligations” has the meaning given in RCW 39.53.010, as now in
effect or as may hereafter be amended.
(r) “Issue Date” means, with respect to a Bond, the date of initial issuance and
delivery of that Bond to the Purchaser in exchange for the purchase price of that Bond.
(s) “Letter of Representations” means the Blanket Issuer Letter of Representations
between the City and DTC, dated July 15, 1997, as it may be amended from time to time, and
any successor or substitute letter relating to the operational procedures of the Securities
Depository.
(t) “MSRB” means the Municipal Securities Rulemaking Board.
(u) “Owner” means, without distinction, the Registered Owner and the Beneficial
Owner.
(v) “Purchaser” means Piper Jaffray & Co. of Seattle, Washington.
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(w) “Rating Agency” means any nationally recognized rating agency then maintaining
a rating on the Bonds at the request of the City.
(x) “Record Date” means the Bond Registrar’s close of business on the 15th day of
the month preceding an interest payment date. With respect to redemption of a Bond prior to its
maturity, the Record Date shall mean the Bond Registrar’s close of business on the date on
which the Bond Registrar sends the notice of redemption in accordance with Section 9.
(y) “Refunded Bonds” means all or a portion of the Refunding Candidates selected by
the Designated Representative to be refunded with proceeds of Bonds and included in a
Refunding Plan.
(z) “Refunding Candidates” means the outstanding Limited Tax General Obligation
Bonds, 2004, of the City maturing in the years 2022 through 2028, inclusive, and 2034, issued
pursuant to Ordinance No. 1321, the refunding of which has been provided for by this ordinance.
(aa) “Refunding Plan” means:
(1) the placement of sufficient proceeds of the Bonds which, with other
money of the City, if necessary, will be used to acquire the Acquired
Obligations to be deposited, with cash, if necessary, with the Refunding
Trustee;
(2) the payment of the principal of and interest on the Refunded Bonds when
due up to and including a date that is approximately 30 days from the
Issue Date, and the call, payment, and redemption on such date, of all of
the then-outstanding Refunded Bonds at a price of par; and
(3) may include the payment of the costs of issuing the Bonds and the costs of
carrying out the foregoing elements of the Refunding Plan.
(bb) “Refunding Trust Agreement” means a Refunding Trust Agreement between the
City and the Refunding Trustee.
(cc) “Refunding Trustee” means the trustee or escrow agent or any successor trustee or
escrow agent serving as refunding trustee to carry out the Refunding Plan.
(dd) “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 the City utilizes the book–entry only
system for the Bonds under the Letter of Representations, Registered Owner shall mean the
Securities Depository.
(ee) “Rule 15c2-12” means Rule 15c2-12 promulgated by the SEC under the
Securities Exchange Act of 1934, as amended.
(ff) “SEC” means the United States Securities and Exchange Commission.
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(gg) “Securities Depository” means DTC, any successor thereto, any substitute
securities depository selected by the City that is qualified under applicable laws and regulations
to provide the services proposed to be provided by it, or the nominee of any of the foregoing.
(hh) “Series of the Bonds” or “Series” means a series of the Bonds issued pursuant to
this ordinance.
(ii) “State” means the State of Washington.
(jj) “Term Bond” means each Bond designated as a Term Bond and subject to
mandatory redemption in the years and amounts set forth in the Bond Purchase Contract.
(kk) “2004 Bonds” means the City’s outstanding Limited Tax General Obligation
Bonds, 2004, issued pursuant to Ordinance No. 1321.
(ll) “2009 Bond” means the City’s outstanding Limited Tax General Obligation
Bond, 2009, issued pursuant to Ordinance No. 1470.
(mm) “Undertaking” means the undertaking to provide continuing disclosure entered
into pursuant to Section 18 of this ordinance.
Section 2. Findings and Determinations. The City takes note of the following facts
and makes the following findings and determinations:
(a) Pursuant to Ordinance No. 1321, the City heretofore issued its $7,700,000 par
value Limited Tax General Obligation Bonds, 2004 (the “2004 Bonds”), for the purpose of
providing funds to finance a police station/City Hall annex, and by that ordinance reserved the
right to redeem the 2004 Bonds prior to their maturity on or after June 1, 2014, at a price of par
plus accrued interest to the date fixed for redemption.
(b) All 2004 Bonds are presently outstanding (the “Refunding Candidates”).
(c) After due consideration, it appears to the City Council that all or a portion of the
Refunding Candidates may be refunded by the issuance and sale of the limited tax general
obligation refunding bonds authorized herein so that a savings will be effected by the difference
between the principal and interest cost over the life of the Bonds and the principal and interest
cost over the life of the Refunded Bonds but for such refunding, which refunding will be effected
by carrying out the Refunding Plan.
(d) To effect that refunding in the manner that will be most advantageous to the City
it may be found necessary and advisable that certain Acquired Obligations bearing interest and
maturing at such time or times as necessary to accomplish the refunding as aforesaid be
purchased out of a portion of the proceeds of the Bonds.
(e) Pursuant to Ordinance No. 1470, the City heretofore issued its $720,448 par value
Limited Tax General Obligation Bond, 2009 (the “2009 Bond”), for the purpose of providing
part of the funds to expand the administrative building at the City’s municipal airport, and by
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that ordinance reserved the right to prepay the 2009 Bond prior to its maturity date upon 15 days
written notice to Cashmere Valley Bank, purchaser of the 2009 Bond.
(f) The maximum amount of indebtedness authorized by this ordinance is
$9,000,000. Based on the following facts, this amount is to be issued within the amount
permitted to be issued by the City for general municipal purposes without a vote.
(1) The assessed valuation of the taxable property within the City as
ascertained by the last preceding assessment for City purposes for
collection in the calendar year 2014 is $1,816,314,125.
(2) As of June 1, 2014, the City has limited tax general obligation
indebtedness, consisting of bonds, notes and leases outstanding in the
principal amount of $18,385,250 which is incurred within the limit of up
to 1½% of the value of the taxable property within the City permitted for
general municipal purposes without a vote.
(3) As of June 1, 2014, the City has no unlimited tax general obligation
indebtedness outstanding.
(g) For the purpose of providing the funds necessary to carry out the Refunding Plan,
to prepay the 2009 Bond and to pay the costs of issuance and sale of the Bonds, the City Council
finds that it is in the best interests of the City and its taxpayers to issue and sell the Bonds to the
Purchaser, pursuant to the terms set forth in the Bond Purchase Contract as approved by the
City’s Designated Representative consistent with this ordinance.
Section 3. Authorization of Bonds. The City is authorized to borrow money on the
credit of the City and issue negotiable limited tax general obligation refunding bonds evidencing
indebtedness in the amount of not to exceed $9,000,000 to provide funds necessary to carry out
the Refunding Plan and to pay the costs of issuance and sale of the Bonds.
Section 4. Description of the Bonds; Appointment of Designated Representative. The
Finance Director, or in his absence, the City Administrator, is appointed as the Designated
Representative of the City and is authorized and directed to conduct the sale of the Bonds in the
manner and upon the terms deemed most advantageous to the City, and to approve the Final
Terms of the Bonds, with such additional terms and covenants as the Designated Representative
deems advisable, within the following parameters:
(a) Principal Amount. The Bonds may be issued in one or more Series and shall not
exceed the aggregate principal amount of $9,000,000.
(b) Date or Dates. Each Bond shall be dated the Issue Date, which date may not be
later than June 1, 2015.
(c) Denominations, Series Designation, etc. The Bonds shall be issued in Authorized
Denominations and shall be numbered separately in the manner and shall bear any name and
additional designation as deemed necessary or appropriate by the Designated Representative.
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(d) Interest Rate(s). Each Bond shall bear interest at a fixed rate per annum
(computed on the basis of a 360-day year of twelve 30-day months) from the Issue Date or from
the most recent date for which interest has been paid or duly provided for, whichever is later.
One or more rates of interest may be fixed for the Bonds. No rate of interest for any Bond may
exceed 5.5%, and the true interest cost to the City for each Series of Bonds may not exceed
5.0%.
(e) Payment Dates. Interest shall be payable at fixed rates semiannually on dates
acceptable to the Designated Representative, commencing no later than one year following the
Issue Date. Principal payments shall commence on a date acceptable to the Designated
Representative and shall be payable at maturity or in mandatory redemption installments on
dates acceptable to the Designated Representative.
(f) Final Maturity. The Bonds shall mature no later than December 1, 2034.
(g) Redemption Rights. The Designated Representative may approve in the Bond
Purchase Contract provisions for the optional and mandatory redemption of Bonds, subject to the
following:
(1) Optional Redemption. Any Bond may be designated as being (A) subject
to redemption at the option of the City prior to its maturity date on the
dates and at the prices set forth in the Bond Purchase Contract; or (B) not
subject to redemption prior to its maturity date. If a Bond is designated as
subject to optional redemption prior to its maturity, it must be subject to
such redemption on one or more dates occurring not more than 10½ years
after the Issue Date.
(2) Mandatory Redemption. Any Bond may be designated as a Term Bond,
subject to mandatory redemption prior to its maturity on the dates and in
the amounts set forth in the Bond Purchase Contract.
(h) Price. The purchase price for each Series of Bonds may not be less than 95% or
more than 120% of the stated principal amount of that Series.
(i) Savings. There is a minimum net present value savings of 3.0% of the Refunded
Bonds.
(j) Other Terms and Conditions.
(1) A Series of Bonds may not be issued if it would cause the indebtedness of
the City to exceed the City’s legal debt capacity on the Issue Date.
(2) The Designated Representative may determine whether it is in the City’s
best interest to provide for bond insurance or other credit enhancement;
and may accept such additional terms, conditions and covenants as he may
determine are in the best interests of the City, consistent with this
ordinance.
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Section 5. Bond Registrar; Registration and Transfer of Bonds.
(a) Registration of Bonds. Each Bond shall be issued only in registered form as to
both principal and interest and the ownership of each Bond shall be recorded on the Bond
Register.
(b) Bond Registrar; Duties. The Fiscal Agent is appointed as initial Bond Registrar.
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
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. The Bond Registrar shall be responsible for its representations contained in
the Bond Registrar’s Certificate of Authentication on each Bond. The Bond Registrar may
become an Owner 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.
(c) Bond Register; Transfer and Exchange. The Bond Register shall contain the name
and mailing address of each Registered Owner and the principal amount and number of each
Bond held by each Registered Owner. A Bond surrendered to the Bond Registrar may be
exchanged for a Bond or Bonds in any Authorized Denomination of an equal aggregate principal
amount and of the same Series, interest rate and maturity. A Bond 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 the Owner or transferee. The Bond Registrar shall not be
obligated to exchange any Bond or transfer registered ownership during the period between the
applicable Record Date and the next upcoming interest payment or redemption date.
(d) Securities Depository; Book-Entry Only Form. DTC is appointed as initial
Securities Depository. Each Bond initially shall be registered in the name of Cede & Co., as the
nominee of DTC. Each Bond registered in the name of the Securities Depository shall be held
fully immobilized in book-entry only form by the Securities Depository in accordance with the
provisions of the Letter of Representations. Registered ownership of any Bond registered in the
name of the Securities Depository may not be transferred except: (i) to any successor Securities
Depository; (ii) to any substitute Securities Depository appointed by the City; or (iii) to any
person if the Bond is no longer to be held in book-entry only form. Upon the resignation of the
Securities Depository, or upon a termination of the services of the Securities Depository by the
City, the City may appoint a substitute Securities Depository. If (i) the Securities Depository
resigns and the City does not appoint a substitute Securities Depository, or (ii) the City
terminates the services of the Securities Depository, the Bonds no longer shall be held in book-
entry only form and the registered ownership of each Bond may be transferred to any person as
provided in this ordinance.
Neither the City nor the Bond Registrar shall have any obligation to participants of any
Securities Depository or the persons for whom they act as nominees regarding accuracy of any
records maintained by the Securities Depository or its participants. Neither the City nor the Bond
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Registrar shall be responsible for any notice that is permitted or required to be given to a
Registered Owner except such notice as is required to be given by the Bond Registrar to the
Securities Depository.
Section 6. Form and Execution of Bonds.
(a) Form of Bonds; Signatures and Seal. Each Bond shall be prepared in a form
consistent with the provisions of this ordinance and State law. Each Bond shall be signed by the
Mayor and the City Clerk, either or both of whose signatures may be manual or in facsimile, and
the seal of the City or a facsimile reproduction thereof shall be impressed or printed thereon. 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 his or her manual or facsimile signature is
authenticated by the Bond Registrar, or issued or delivered by the City, that Bond nevertheless
may be authenticated, issued and delivered and, when authenticated, issued and delivered, 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 he or she did not hold the required office on its Issue Date.
(b) Authentication. Only a Bond bearing a Certificate of Authentication in
substantially the following form, manually signed by the Bond Registrar, shall be valid or
obligatory for any purpose or entitled to the benefits of this ordinance: “Certificate of
Authentication. This Bond is one of the fully registered City of Arlington, Washington, Limited
Tax General Obligation Refunding Bonds, 2014.” 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.
Section 7. Payment of Bonds. Principal of and interest on each Bond shall be payable
in lawful money of the United States of America. Principal of and interest on each Bond
registered in the name of the Securities Depository is payable in the manner set forth in the
Letter of Representations. Interest on each Bond not registered in the name of the Securities
Depository is 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. However, the City is not required to make
electronic transfers except pursuant to a request by a Registered Owner in writing received on or
prior to the Record Date and at the sole expense of the Registered Owner. Principal of each Bond
not registered in the name of the Securities Depository is payable upon presentation and
surrender of the Bond by the Registered Owner to the Bond Registrar. The Bonds are not subject
to acceleration under any circumstances.
Section 8. Bond Account. The Bond Account is created as a special account of the
City for the sole purpose of paying principal of and interest and any redemption premium, if any,
on the Bonds. Bond proceeds in excess of the amounts needed to pay the costs of the Refunding
Plan and the costs of issuance, if any, shall be deposited into the Bond Account. All amounts
allocated to the payment of the principal of and interest on the Bonds shall be deposited in the
Bond Account as necessary for the timely payment of amounts due with respect to the Bonds.
The principal of and interest on the Bonds shall be paid out of the Bond Account. Until needed
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for that purpose, the City may invest money in the Bond Account temporarily in any legal
investment, and the investment earnings shall be retained in the Bond Account and used for the
purposes of that account.
Section 9. Redemption Provisions and Purchase of Bonds.
(a) Optional Redemption. The Bonds shall be subject to redemption at the option of
the City on terms acceptable to the Designated Representative, as set forth in the Bond Purchase
Contract, consistent with the parameters set forth in Section 4.
(b) Mandatory Redemption. Each Bond that is designated as a Term Bond in the
Bond Purchase Contract, consistent with the parameters set forth in Section 4, if not previously
redeemed under any optional redemption provisions, defeased or purchased and surrendered for
cancellation under the provisions set forth below, shall be called for redemption at a price equal
to the stated principal amount to be redeemed, plus accrued interest, on the dates and in the
amounts as set forth in the Bond Purchase Contract. If a Term Bond is redeemed under the
optional redemption provisions, defeased or purchased by the City and surrendered for
cancellation, the principal amount of the Term Bond so redeemed, defeased or purchased
(irrespective of its actual redemption or purchase price) shall be credited against one or more
scheduled mandatory redemption installments for that Term Bond. The City shall determine the
manner in which the credit is to be allocated and shall notify the Bond Registrar in writing of its
allocation prior to the earliest mandatory redemption date for that Term Bond for which notice of
redemption has not already been given.
(c) Selection of Bonds for Redemption; Partial Redemption. If fewer than all of the
outstanding Bonds are to be redeemed at the option of the City, the City shall select the Series
and maturities to be redeemed. If fewer than all of the outstanding Bonds of a maturity of a
Series are to be redeemed, the Securities Depository shall select Bonds registered in the name of
the Securities Depository to be redeemed in accordance with the Letter of Representations, and
the Bond Registrar shall select all other Bonds to be redeemed randomly in such manner 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 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.
(d) Notice of Redemption. Notice of redemption of each Bond registered in the name
of the Securities Depository shall be given in accordance with the Letter of Representations.
Notice of redemption of each other Bond, unless waived by the Registered Owner, shall be given
by the Bond Registrar 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 at the address appearing
on the Bond Register on the Record Date. The requirements of the preceding sentence shall be
satisfied when notice has been mailed as so provided, whether or not it is actually received by an
Owner. In addition, the redemption notice shall be mailed or sent electronically within the same
period to the MSRB (if required under the Undertaking), to each Rating Agency, and to such
other persons and with such additional information as the Designated Representative shall
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determine, but these additional mailings shall not be a condition precedent to the redemption of
any Bond.
(e) Rescission of Optional Redemption Notice. In the case of an optional redemption,
the notice of redemption may state that the City retains the right to rescind the redemption notice
and the redemption by giving a notice of rescission to the affected Registered Owners at any time
on or prior to the date fixed for redemption. Any notice of optional redemption that is so
rescinded shall be of no effect, and each Bond for which a notice of redemption has been
rescinded shall remain outstanding.
(f) Effect of Redemption. Interest on each Bond called for redemption shall cease to
accrue on the date fixed for redemption, unless either the notice of optional redemption is
rescinded as set forth above, or money sufficient to effect such redemption is not on deposit in
the Bond Fund or in a trust account established to refund or defease the Bond.
(g) Purchase of Bonds. The City reserves the right to purchase any or all of the Bonds
offered to the City at any time at any price acceptable to the City plus accrued interest to the date
of purchase.
Section 10. Failure To Pay Bonds. If the principal of any Bond is not paid when the
Bond is properly presented at its maturity date or date fixed for redemption, the City shall be
obligated to pay interest on that Bond at the same rate provided in the Bond from and after its
maturity or date fixed for redemption until that Bond, both principal and interest, is paid in full
or until sufficient money for its payment in full is on deposit in the Bond Account, or in a trust
account established to refund or defease the Bond, and the Bond has been called for payment by
giving notice of that call to the Registered Owner.
Section 11. Pledge of Taxes. The Bonds constitute a general indebtedness of the City
and are payable from tax revenues of the City and such other money as is lawfully available and
pledged by the City for the payment of principal of and interest on the Bonds. For as long as any
of the Bonds are outstanding, the City irrevocably pledges that it shall, in the manner provided
by law within the constitutional and statutory limitations provided by law without the assent of
the voters, include in its annual property tax levy amounts sufficient, together with airport
revenue for the portion of the Bonds used to prepay the 2009 Bond, other money that is lawfully
available, to pay principal of and interest on the Bonds as the same become due. The full faith,
credit and resources of the City are pledged irrevocably for the prompt payment of the principal
of and interest on the Bonds and such pledge shall be enforceable in mandamus against the City.
Section 12. Tax Covenants; Designation of Bonds as “Qualified Tax-Exempt
Obligations.”
(a) Preservation of Tax Exemption for Interest on Bonds. The City covenants that it
will take all actions necessary to prevent interest on the Bonds from being included in gross
income for federal income tax purposes, and it will neither take any action nor make or permit
any use of proceeds of the Bonds or other funds of the City treated as proceeds of the Bonds that
will cause interest on the Bonds to be included in gross income for federal income tax purposes.
The City also covenants that it will, to the extent the arbitrage rebate requirements of Section 148
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of the Code are applicable to the Bonds, take all actions necessary to comply (or to be treated as
having complied) with those requirements in connection with the Bonds.
(b) Post-Issuance Compliance. The Designated Representative is authorized and
directed to adopt and implement the City’s written procedures to facilitate compliance by the
City with the covenants in this ordinance and the applicable requirements of the Code that must
be satisfied after the Issue Date to prevent interest on the Bonds from being included in gross
income for federal tax purposes.
(c) Designation of Bonds as “Qualified Tax-Exempt Obligations.” The Bonds may
be designated as “qualified tax-exempt obligations” for the purposes of Section 265(b)(3) of the
Code, if the following conditions are met:
(1) the Bonds do not constitute “private activity bonds” within the meaning of
Section 141 of the Code;
(2) the reasonably anticipated amount of tax-exempt obligations (other than
private activity bonds and other obligations not required to be included in
such calculation) that the City and any entity subordinate to the City
(including any entity that the City controls, that derives its authority to
issue tax-exempt obligations from the City, or that issues tax-exempt
obligations on behalf of the City) will issue during the calendar year in
which the Bonds are issued will not exceed $10,000,000; and
(3) the amount of tax-exempt obligations, including the Bonds, designated by
the City as “qualified tax-exempt obligations” for the purposes of
Section 265(b)(3) of the Code during the calendar year in which the Bonds
are issued does not exceed $10,000,000.
Section 13. Refunding or Defeasance of the Bonds. The City may issue refunding
bonds pursuant to State law or use money available from any other lawful source to carry out a
refunding or defeasance plan, which may include (a) paying when due the principal of and
interest on any or all of the Bonds (the “defeased Bonds”); (b) redeeming the defeased Bonds
prior to their maturity; and (c) paying the costs of the refunding or defeasance. If the City sets
aside in a special trust fund or escrow account irrevocably pledged to that redemption or
defeasance (the “trust account”), money and/or Government Obligations maturing at a time or
times and bearing interest in amounts sufficient to redeem, refund or defease the defeased Bonds
in accordance with their terms, then all right and interest of the Owners of the defeased Bonds in
the covenants of this ordinance and in the funds and accounts obligated to the payment of the
defeased Bonds shall cease and become void. Thereafter, the Owners of defeased Bonds shall
have the right to receive payment of the principal of and interest on the defeased Bonds solely
from the trust account and the defeased Bonds shall be deemed no longer outstanding. In that
event, the City may apply money remaining in any fund or account (other than the trust account)
established for the payment or redemption of the defeased Bonds to any lawful purpose.
Unless otherwise specified by the City in a refunding or defeasance plan, notice of
refunding or defeasance shall be give, and selection of Bonds for any partial refunding or
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defeasance shall be conducted, in the manner prescribed in this ordinance for the redemption of
Bonds.
Section 14. Refunding of the Refunded Bonds.
(a) Appointment of Refunding Trustee. The Designated Representative is authorized
to appoint a Refunding Trustee in connection with the Bonds.
(b) Use of Bond Proceeds; Acquisition of Acquired Obligations. A sufficient amount
of the proceeds of the sale of the Bonds shall be deposited immediately upon the receipt thereof
with the Refunding Trustee and used to discharge the obligations of the City relating to the
Refunded Bonds under Ordinance No. 1321 by providing for the payment of the amounts
required to be paid by the Refunding Plan. To the extent practicable, such obligations shall be
discharged fully by the Refunding Trustee’s simultaneous purchase of the Acquired Obligations,
bearing such interest and maturing as to principal and interest in such amounts and at such times
so as to provide, together with a beginning cash balance, if necessary, for the payment of the
amount required to be paid by the Refunding Plan. The Acquired Obligations, if acquired, will be
listed and more particularly described in an exhibit to be attached to the Refunding Trust
Agreement between the City and the Refunding Trustee, but are subject to substitution as set
forth below. Any Bond proceeds or other money deposited with the Refunding Trustee not
needed to purchase the Acquired Obligations and provide a beginning cash balance, if any, and
pay the costs of issuance of the Bonds shall be returned to the City at the time of delivery of the
Bonds to the initial purchaser thereof and deposited in the Bond Account to pay interest on the
Bonds.
If payment of the costs of issuance of the Bonds is not included in the Refunding Plan,
the Bond proceeds that are not deposited with the Refunding Trustee will be deposited with the
City to be used to pay the costs of issuance of the Bonds.
The remaining proceeds of the sale of the Bonds shall be used to prepay the 2009 Bond
on or about the Issue Date of the Bonds.
(c) Substitution of Acquired Obligations. Prior to the purchase of any Acquired
Obligations by the Refunding Trustee, the City reserves the right to substitute other direct,
noncallable obligations of the United States of America (“Substitute Obligations”) for any of the
Acquired Obligations and to use any savings created thereby for any lawful City purpose if,
(a) in the opinion of the City’s bond counsel, the interest on the Bonds and the Refunded Bonds
will remain excluded from gross income for federal income tax purposes under Sections 103,
148, and 149(d) of the Code, and (b) such substitution shall not impair the timely payment of the
amounts required to be paid by the Refunding Plan, as verified by a nationally recognized
independent certified public accounting firm.
After the purchase of the Acquired Obligations by the Refunding Trustee, the City
reserves the right to substitute therefor cash or Substitute Obligations subject to the conditions
that such money or securities held by the Refunding Trustee shall be sufficient to carry out the
Refunding Plan, that such substitution will not cause the Bonds or the Refunded Bonds to be
arbitrage bonds within the meaning of Section 148 of the Code and regulations thereunder in
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effect on the date of such substitution and applicable to obligations issued on the issue dates of
the Bonds and the Refunded Bonds, as applicable, and that the City obtain, at its expense: (1) a
verification by a nationally recognized independent certified public accounting firm acceptable
to the Refunding Trustee confirming that the payments of principal of and interest on the
substitute securities, if paid when due, and any other money held by the Refunding Trustee will
be sufficient to carry out the Refunding Plan; and (2) an opinion from a nationally recognized
bond counsel to the City, to the effect that the disposition and substitution or purchase of such
securities, under the statutes, rules, and regulations then in force and applicable to the Bonds,
will not cause the interest on the Bonds or the Refunded Bonds to be included in gross income
for federal income tax purposes and that such disposition and substitution or purchase is in
compliance with the statutes and regulations applicable to the Bonds. Any surplus money
resulting from the sale, transfer, other disposition, or redemption of the Acquired Obligations and
the substitutions therefor shall be released from the trust estate and transferred to the City to be
used for any lawful City purpose.
(d) Administration of Refunding Plan. The Refunding Trustee is authorized and
directed to purchase the Acquired Obligations (or substitute obligations), if so directed by the
Designated Representative, and to make the payments required to be made by the Refunding
Plan from the Acquired Obligations (or substitute obligations) and money deposited with the
Refunding Trustee pursuant to this ordinance. All Acquired Obligations (or substitute
obligations) and the money deposited with the Refunding Trustee and any income therefrom
shall be held irrevocably, invested and applied in accordance with the provisions of Ordinance
No. 1321, this ordinance, chapter 39.53 RCW and other applicable statutes of the State of
Washington and the Refunding Trust Agreement. All necessary and proper fees, compensation,
and expenses of the Refunding Trustee for the Bonds and all other costs incidental to the setting
up of the escrow to accomplish the refunding of the Refunded Bonds and costs related to the
issuance and delivery of the Bonds, including bond printing, Bond Counsel’s fees, and other
related expenses, shall be paid out of the proceeds of the Bonds.
(e) Authorization for Refunding Trust Agreement. To carry out the Refunding Plan
provided for by this ordinance, the Designated Representative is authorized and directed to
execute and deliver to the Refunding Trustee a Refunding Trust Agreement setting forth the
duties, obligations and responsibilities of the Refunding Trustee in connection with the payment,
redemption, and retirement of the Refunded Bonds as provided herein and stating that the
provisions for payment of the fees, compensation, and expenses of such Refunding Trustee set
forth therein are satisfactory to it. Prior to executing the Refunding Trust Agreement, the
Designated Representative of the City is authorized to make such changes therein that do not
change the substance and purpose thereof or that assure that the escrow provided therein and the
Bonds are in compliance with the requirements of federal law governing the exclusion of interest
on the Bonds from gross income for federal income tax purposes.
Section 15. Call for Redemption of the Refunded Bonds. The City calls for
redemption on a date that is approximately 30 days from the Issue Date, all of the Refunded
Bonds at par plus accrued interest. Such call for redemption shall be irrevocable after the
delivery of the Bonds to the initial purchaser thereof.
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The proper City officials are authorized and directed to give or cause to be given such
notices as required, at the times and in the manner required, pursuant to Ordinance No. 1321 in
order to effect the redemption prior to their maturity of the Refunded Bonds.
Section 16. Findings with Respect to Refunding. The City Council authorizes the
Designated Representative to issue the Bonds if it will achieve debt service savings to the City
and is in the best interest of the City and its taxpayers. In making such finding and determination,
the Designated Representative will give consideration to the fixed maturities of the Bonds and
the Refunded Bonds, the costs of issuance of the Bonds and the known earned income from the
investment of the proceeds of the issuance and sale of the Bonds and other money of the City
used in the Refunding Plan, if any, pending payment and redemption of the Refunded Bonds.
The Designated Representative may also purchase Acquired Obligations to be deposited
with the Refunding Trustee, together with the income therefrom, and with any necessary
beginning cash balance, which will be sufficient to redeem the Refunded Bonds and will
discharge and satisfy the obligations of the City under Ordinance No. 1321 with respect to the
Refunded Bonds, and the pledges, charges, trusts, covenants, and agreements of the City therein
made or provided for as to the Refunded Bonds, and that the Refunded Bonds shall no longer be
deemed to be outstanding under such ordinance immediately upon the deposit of such money
with the Refunding Trustee.
Section 17. Sale and Delivery of the Bonds.
(a) Manner of Sale of Bonds; Delivery of Bonds. The Designated Representative is
authorized to sell each Series of the Bonds by negotiated sale based on the assessment of the
Designated Representative of market conditions, in consultation with appropriate City officials
and staff, Bond Counsel and other advisors. In determining and accepting the Final Terms, the
Designated Representative shall take into account those factors that, in the judgment of the
Designated Representative, may be expected to result in the lowest true interest cost to the City.
(b) Preparation, Execution and Delivery of the Bonds. The Bonds will be prepared at
City expense and will be delivered to the Purchaser in accordance with the Bond Purchase
Contract, together with the approving legal opinion of Bond Counsel regarding the Bonds.
Section 18. Official Statement.
(a) Preliminary Official Statement Deemed Final. The Designated Representative
shall review and, if acceptable to him, approve the form of the preliminary official statement
prepared in connection with each sale of a Series of the Bonds to the public. For the sole purpose
of the Purchaser’s compliance with paragraph (b)(1) of Rule 15c2-12, the Designated
Representative 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 approved by the Designated Representative and deemed final in accordance with
this subsection.
(b) Approval of Final Official Statement. The City approves the preparation of a final
official statement for each Series of the Bonds to be sold to the public in the form of the
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preliminary official statement that has been approved and deemed final in accordance with
subsection (a), with such modifications and amendments as the Designated Representative deems
necessary or desirable, and further authorizes Designated Representative to execute and deliver
such final official statement to the Purchaser. The City authorizes and approves the distribution
by the Purchaser of the final official statement to purchasers and potential purchasers of the
Bonds.
(c) Undertaking to Provide Continuing Disclosure.
Section 19. Continuing Disclosure. To meet the requirements of paragraph (b)(5) of
Rule 15c2-12, as applicable to a participating underwriter for the Bonds, the City makes the
following written Undertaking for the benefit of holders of the Bonds:
(a) Undertaking to Provide Annual Financial Information and Notice of Listed
Events. The City undertakes to provide or cause to be provided, either directly or through a
designated agent, to the MSRB, in an electronic format as prescribed by the MSRB,
accompanied by identifying information as prescribed by the MSRB:
(1) Annual financial information and operating data of the type included in
the final official statement for the Bonds and described in paragraph (b)
(“annual financial information”);
(2) Timely notice (not in excess of 10 business days after the occurrence of
the event) of the occurrence of any of the following events with respect to
the Bonds: (1) principal and interest payment delinquencies; (2) non-
payment related defaults, if material; (3) unscheduled draws on debt
service reserves reflecting financial difficulties; (4) unscheduled draws on
credit enhancements reflecting financial difficulties; (5) substitution of
credit or liquidity providers, or their failure to perform; (6) adverse tax
opinions, the issuance by the Internal Revenue Service of proposed or
final determinations of taxability, Notice of Proposed Issue (IRS Form
5701 – TEB) or other material notices or determinations with respect to
the tax status of the Bonds; (7) modifications to rights of holders of the
Bonds, if material; (8) bond calls (other than scheduled mandatory
redemptions of Term Bonds), if material, and tender offers;
(9) defeasances; (10) release, substitution, or sale of property securing
repayment of the Bonds, if material; (11) rating changes; (12) bankruptcy,
insolvency, receivership or similar event of the City, as such “Bankruptcy
Events” are defined in Rule 15c2-12; (13) the consummation of a merger,
consolidation, or acquisition involving the City or the sale of all or
substantially all of the assets of the City other than in the ordinary course
of business, the entry into a definitive agreement to undertake such an
action or the termination of a definitive agreement relating to any such
actions, other than pursuant to its terms, if material; and (14) appointment
of a successor or additional trustee or the change of name of a trustee, if
material.
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(3) Timely notice of a failure by the City to provide required annual financial
information on or before the date specified in paragraph (b).
(b) Type of Annual Financial Information Undertaken to be Provided. The annual
financial information that the City undertakes to provide in paragraph (a):
(4) Shall consist of (1) annual financial statements prepared (except as noted
in the financial statements) in accordance with applicable generally
accepted accounting principles applicable to local governmental units of
the State such as the City, as such principles may be changed from time to
time, which statements may be unaudited, provided, that if and when
audited financial statements are prepared and available they will be
provided; (2) principal amount of general obligation bonds outstanding at
the end of the applicable fiscal year; (3) assessed valuation for that fiscal
year; and (4) property tax levy amounts and rates for that fiscal year;
(5) Shall be provided not later than the last day of the ninth month after the
end of each fiscal year of the City (currently, a fiscal year ending
December 31), as such fiscal year may be changed as required or
permitted by State law, commencing with the City’s fiscal year ending
December 31, 2014; and
(6) May be provided in a single or multiple documents, and may be
incorporated by specific reference to documents available to the public on
the Internet website of the MSRB or filed with the SEC.
(c) Amendment of Undertaking. The Undertaking is subject to amendment after the
primary offering of the Bonds without the consent of any holder of any Bond, or of any broker,
dealer, municipal securities dealer, participating underwriter, Rating Agency or the MSRB,
under the circumstances and in the manner permitted by Rule 15c2-12. The City will give notice
to the MSRB of the substance (or provide a copy) of any amendment to the Undertaking and a
brief statement of the reasons for the amendment. If the amendment changes the type of annual
financial information to be provided, the annual financial information containing the amended
financial information will include a narrative explanation of the effect of that change on the type
of information to be provided.
(d) Beneficiaries. The Undertaking evidenced by this section shall inure to the benefit
of the City and the Beneficial Owner holder of a Bond, and shall not inure to the benefit of or
create any rights in any other person.
(e) Termination of Undertaking. The City’s obligations under the Undertaking shall
terminate upon the legal defeasance of all of the Bonds. In addition, the City’s obligations under
the Undertaking shall terminate if the provisions of Rule 15c2-12 that require the City to comply
with the Undertaking become legally inapplicable in respect of the Bonds for any reason, as
confirmed by an opinion of Bond Counsel delivered to the City, and the City provides timely
notice of such termination to the MSRB.
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(f) Remedy for Failure to Comply with Undertaking. As soon as practicable after the
City learns of any failure to comply with the Undertaking, the City will proceed with due
diligence to cause such noncompliance to be corrected. No failure by the City or other obligated
person to comply with the Undertaking shall constitute a default in respect of the Bonds. The
sole remedy of any holder of a Bond shall be to take action to compel the City or other obligated
person to comply with the Undertaking, including seeking an order of specific performance from
an appropriate court.
(g) Designation of Official Responsible to Administer Undertaking. The Designated
Representative of the City (or such other officer of the City who may in the future perform the
duties of that office) or his or her designee is authorized and directed in his or her discretion to
take such further actions as may be necessary, appropriate or convenient to carry out the
Undertaking and in accordance with Rule 15c2-12 including the following actions:
(1) Preparing and filing the annual financial information undertaken to be
provided;
(2) Determining whether any event specified in paragraph (a) has occurred,
assessing its materiality, where necessary, with respect to the Bonds, and
preparing and disseminating any required notice of its occurrence;
(3) Determining whether any person other than the City is an “obligated
person” within the meaning of Rule 15c2-12 with respect to the Bonds,
and obtaining from such person an undertaking to provide any annual
financial information and notice of listed events for that person required
under Rule 15c2-12;
(4) Selecting, engaging and compensating designated agents and consultants,
including financial advisors and legal counsel, to assist and advise the City
in carrying out the Undertaking; and
(5) Effecting any necessary amendment of the Undertaking.
Section 20. Supplemental and Amendatory Ordinances. The City may supplement or
amend this ordinance for any one or more of the following purposes without the consent of any
Owners of the Bonds:
(a) To add covenants and agreements that do not materially adversely affect the
interests of Owners, or to surrender any right or power reserved to or conferred upon the City.
(b) To cure any ambiguities, or to cure, correct or supplement any defective provision
contained in this ordinance in a manner that does not materially adversely affect the interest of
the Beneficial Owners of the Bonds.
Section 21. General Authorization and Ratification. The Mayor, City Clerk,
Designated Representative and other appropriate officers of the City are severally authorized to
take such actions and to execute such documents as in their judgment may be necessary or
desirable to carry out the transactions contemplated in connection with this ordinance, and to do
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everything necessary for the prompt delivery of the Bonds to the Purchaser and for the proper
application, use and investment of the proceeds of the Bonds. All actions taken prior to the
effective date of this ordinance in furtherance of the purposes described in this ordinance and not
inconsistent with the terms of this ordinance are ratified and confirmed in all respects.
Section 22. Severability. The provisions of this ordinance are declared to be separate
and severable. If a court of competent jurisdiction, all appeals having been exhausted or all
appeal periods having run, finds any provision of this ordinance to be invalid or unenforceable as
to any person or circumstance, such offending provision shall, if feasible, be deemed to be
modified to be within the limits of enforceability or validity. However, if the offending provision
cannot be so modified, it shall be null and void with respect to the particular person or
circumstance, and all other provisions of this ordinance in all other respects, and the offending
provision with respect to all other persons and all other circumstances, shall remain valid and
enforceable.
Section 23. Effective Date of Ordinance. This ordinance shall take effect and be in
force from and after its passage and five days following its publication as required by law.
PASSED by the City Council and APPROVED by the Mayor of the City of Arlington,
Washington, at an open public meeting thereof, this 7th day of July, 2014.
Mayor
ATTEST:
City Clerk
APPROVED AS TO FORM:
Bond Counsel
51293098.5
CERTIFICATION
I, the undersigned, City Clerk of the City of Arlington, Washington (the “City”), hereby
certify as follows:
1. The attached copy of Ordinance No. ____ (the “Ordinance”) is a full, true and correct
copy of an ordinance duly passed at a regular meeting of the City Council of the City held at the
regular meeting place thereof on July 7, 2014, as that ordinance appears on the minute book of
the City.
2. The Ordinance will be in full force and effect five days after publication in the City’s
official newspaper, which publication date was July __, 2014.
3. A quorum of the members of the City Council was present throughout the meeting
and a majority of the members voted in the proper manner for the passage of the Ordinance.
Dated: July __, 2014.
CITY OF ARLINGTON, WASHINGTON
_____________________________________
City Clerk
City of Arlington
Council Agenda Bill
Item:
NB #2
Attachment
D
COUNCIL MEETING DATE:
July 7, 2014
SUBJECT:
Ordinance establishing a line of credit and providing for the issuance and sale of a
limited tax general obligation bond in the aggregate principal amount of not to exceed
$500,000
ATTACHMENTS:
Draft Ordinance prepared by bond counsel
DEPARTMENT OF ORIGIN
Administration – Kristin Banfield; Community Development—Paul Ellis; Finance – Jim
Chase
EXPENDITURES REQUESTED: N/A
BUDGET CATEGORY: N/A
LEGAL REVIEW:
DESCRIPTION:
Council is asked to approve the attached ordinance establishing a line of credit with
Cashmere Valley State Bank for not to exceed $500,000 at an interest rate of 2.5%.
This line of credit will be used to fund police cars, computer equipment and emergency
radios.
HISTORY:
With the approval of the levy lid lift by the voters, the City can now move forward on
replacing significantly outdated vehicles and equipment. Directors have been meeting
since last fall to prepare a 15 year Equipment and Vehicle Replacement Plan. This plan
was reviewed by Council at the April 26, 2014 Council Retreat.
ALTERNATIVES
RECOMMENDED MOTION:
I move to approve the proposed Ordinance establishing a line of credit and providing
for the issuance and sale of a limited tax general obligation bond in an aggregate
principal amount not to exceed $500,000
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51381279.1
CITY OF ARLINGTON, WASHINGTON
ORDINANCE NO. _______
AN ORDINANCE of the City of Arlington, Washington, establishing a
line of credit and providing for the issuance and sale of a limited tax general
obligation bond in the aggregate principal amount of not to exceed $500,000 to
evidence the line of credit to be used to purchase equipment; and fixing the form,
covenants and terms of the bond.
THE CITY COUNCIL OF THE CITY OF ARLINGTON, WASHINGTON, DO
ORDAIN AS FOLLOWS:
Section 1. Definitions. As used in this ordinance, the following capitalized terms
shall have the following meanings:
(a) “Authorized Officer” means the City Administrator or Finance Director.
(b) “Bank” means Cashmere Valley Bank.
(c) “Bond” means the “City of Arlington, Washington Limited Tax General
Obligation Bond, 2014” authorized by this ordinance.
(d) “Bond Account” means the Limited Tax General Obligation Bond Account, 2014,
of the City created for the payment of the principal of and interest on the Bond.
(e) “Bond Register” means the registration records for the Bond maintained by the
Bond Registrar.
(f) “Bond Registrar” means the City Finance Director, 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.
(g) “City” means the City of Arlington, Washington, a municipal corporation duly
organized and existing under the laws of the State of Washington.
(h) “City Council” means the legislative authority of the City, as duly and regularly
constituted from time to time.
(i) “Code” means the United States Internal Revenue Code of 1986, as amended, and
applicable rules and regulations promulgated thereunder.
(j) “Date of Delivery” means the date of the delivery of the Bond to the Bank.
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51381279.1
(k) “Interest Rate” means 65.01% of the previous monthly average of the 4-year
interest rate swap as published in the Selected Interest Rates – H.15 release by the Board of
Governors of the Federal Reserve System, plus 1.45%.
(l) “Outstanding Principal Balance of the Bond” means the aggregate of all funds
that the City has drawn from the Bank pursuant to the Bond less the aggregate of all principal
payments on the Bond made by the City.
(m) “Proposal” means an offer to purchase the Bond, setting forth certain terms and
conditions of the issuance, sale and delivery of the Bond.
(n) “Request for Draw” means a written request by an Authorized Officer for a draw
from the line of credit authorized to be established by this ordinance.
Section 2. Findings and Determinations. The City takes note of the following facts
and makes the following findings and determinations:
(a) Authority and Description of the Project. The City is in need of equipment,
including police cars and computer equipment (collectively, the “Acquisitions”). The City
Council therefore finds that it is in the best interests of the City to carry out the Acquisitions.
(b) Plan of Financing. Pursuant to applicable law, including without limitation
chapters 35.37, 39.36, 39.44 and 39.46 RCW, the City is authorized to issue general obligation
bonds for the purpose of financing the Acquisitions. The total expected cost of the Acquisitions
is approximately $500,000, which is expected to be made up of proceeds of the Bond.
(c) Debt Capacity. The maximum amount of indebtedness authorized by this
ordinance is $500,000. Based on the following facts, this amount is to be issued within the
amount permitted to be issued by the City for general municipal purposes without a vote:
(1) The assessed valuation of the taxable property within the City as
ascertained by the last preceding assessment for City purposes for collection in the calendar year
2014 is $1,816,314,125.
(2) As of June 1, 2014, the City has limited tax general obligation
indebtedness, consisting of leases and conditional sales contracts outstanding in the principal
amount of $18,385,250, which is incurred within the limit of up to 1½% of the value of the
taxable property within the City permitted for general municipal purposes without a vote.
(3) As of June 1, 2014, the City has no unlimited tax general obligation
indebtedness outstanding.
Section 3. Authorization of the Bond; Payment, Registration and Transfer. In order
to finance the Acquisitions, the City shall establish a [non-]revolving line of credit and issue and
sell a bond to evidence such line. The Bond shall be designated the “City of Arlington,
Washington Limited Tax General Obligation Bond, 2014” and issued in the denomination of not
to exceed $500,000 (the “Bond”). The Bond shall be dated the date of delivery to the Bank (the
“Date of Delivery”).
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51381279.1
It is expected that the City will make a draw of approximately $186,000 on the closing
date of the Bond and subsequent draws on or about August 1, 2015 and August 1, 2016. The
Bond will bear interest at the Interest Rate. Each draw pursuant to a Request for Draw on the
Bond shall bear interest at the Interest Rate at the time of the draw. Interest on the Bond shall
accrue from the date money is drawn, pursuant to a Request for Draw, until paid and shall be
computed on the principal amount outstanding on the basis of a 365-day year, and the actual
days elapsed.
The Bond shall be repaid in approximately equal semi-annual installments of principal
and interest, beginning February 1, 2015 and at each August 1 and February 1 thereafter, to and
including the maturity date of August 1, 2020 (the “Maturity Date”). The semi-annual
installment amounts will be set to amortize each draw on the Bond to the Maturity Date. The
Bank will prepare an amortization schedule to be distributed to the City and the Bond Registrar
within seven business days after the first draw and recalculated after each additional draw.
The Outstanding Principal Balance of the Bond on any particular day shall be the
aggregate of all funds which the City has drawn from the date of the Bond to that day less the
aggregate of all principal payments made by the City on or before that day. Interest on a
particular principal amount so advanced shall be determined from the date of the draw of Bond
proceeds pursuant to a Request for Draw by the City.
The Bond shall be issued in fully registered form. Both principal of and interest on the
Bond shall be payable in lawful money of the United States of America by check, warrant, wire
transfer or automatic clearinghouse funds, to the registered owner of the Bond at the address
shown on the Bond Register.
A Request for Draw pursuant to the Bond may be made on any business day by an
Authorized Officer in writing. A Request for Draw made prior to 11:00 a.m. and confirmed by
the Bank will be funded on that business day. The City hereby delegates to the Authorized
Officers authority to make a written Request for Draw pursuant to this ordinance. The Bank
shall incur no liability to the City or to any other person in acting upon any written
communication which the Bank believes in good faith to have been given by an official
authorized to borrow on behalf of the City, or otherwise acting in good faith in making advances
pursuant to this ordinance. Bond proceeds shall be deposited into the appropriate City account
determined by an Authorized Officer.
The Bond may be assigned or transferred only in whole and only if endorsed in the
manner provided thereon and surrendered to the Bond Registrar, subject to the Bank’s
representations in a certificate to be provided on the Date of Delivery. Any such transfer shall be
without cost to the owner or transferee and shall be noted in the Bond Register. The Bond may
only be assigned by the Bank to another qualified investor satisfying the requirements set forth in
the certificate to be signed by the Bank on the Date of Delivery.
Section 4. Form and Execution of the Bond.
(a) Form of the Bond; Signatures and Seal. The Bond shall be prepared in a form
consistent with the provisions of this ordinance and Washington law. The Bond shall be signed
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51381279.1
by the Mayor and the City Clerk, either or both of whose signatures may be manual or in
facsimile, and the seal of the City or a facsimile reproduction thereof shall be impressed or
printed thereon. If any officer whose manual or facsimile signature appears on the Bond ceases
to be an officer of the City authorized to sign bonds before the Bond bearing his or her manual or
facsimile signature is authenticated by the Bond Registrar, or issued or delivered by the City, the
Bond nevertheless may be authenticated, issued and delivered and, when authenticated, issued
and delivered, shall be as binding on the City as though that person had continued to be an
officer of the City authorized to sign bonds. The 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 he or she did not hold the required office on its Date of Delivery.
(b) Authentication. Only the Bond bearing a Certificate of Authentication in
substantially the following form, manually signed by the Bond Registrar, shall be valid or
obligatory for any purpose or entitled to the benefits of this ordinance: “Certificate of
Authentication. This Bond is the fully registered City of Arlington, Washington, Limited Tax
General Obligation Bond, 2014.” 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.
Section 5. Bond Account. A special fund or account of the City known as the
“Limited Tax General Obligation Bond Account, 2014” (the “Bond Account”) is hereby
authorized to be created and shall be drawn upon for the sole purpose of paying and securing the
payment of the Bond. The City hereby covenants and agrees to deposit in the Bond Account
proceeds of bonds, a refunding note, loans, taxes and/or grants, if any received by the City for
the Acquisitions, in an amount sufficient to pay the principal of and interest on the Bond as the
same becomes due.
Section 6. Prepayment. The City reserves the right to prepay principal of the Bond in
advance of the scheduled payment, in whole or in part, at any time, with no prepayment penalty.
The City will notify the Bank at least 15 days in advance of its intent to prepay. At any time
there is a partial prepayment, the remaining installment payments shall be recalculated as
mutually agreed upon, in writing, by the City and the Bank to reflect either a reduction in the
installment payment amount, or the earlier maturity date of the Bond. Within seven business
days of a partial prepayment, the Bank shall provide to the City and Bond Registrar a
recalculated payment schedule.
Section 7. Pledge of Taxes. The Bond constitutes a general indebtedness of the City
and is payable from tax revenues of the City and such other money as is lawfully available and
pledged by the City for the payment of principal of and interest on the Bond. For as long as the
Bond is outstanding, the City irrevocably pledges that it shall, in the manner provided by law
within the constitutional and statutory limitations provided by law without the assent of the
voters, include in its annual property tax levy amounts sufficient, together with other money that
is lawfully available, to pay principal of and interest on the Bond as the same become due. The
full faith, credit and resources of the City are pledged irrevocably for the prompt payment of the
principal of and interest on the Bond and such pledge shall be enforceable in mandamus against
the City.
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51381279.1
Section 8. Tax Covenants.
(a) Tax Certificate. The City hereby covenants that it will not make any use of the
proceeds of sale of the Bond or any other funds of the City which may be deemed to be proceeds
of such Bond pursuant to Section 148 of the Code and the applicable regulations thereunder
which will cause the Bond to be an “arbitrage bond” within the meaning of such section and such
regulations. The City will comply with the requirements of Section 148 of the Code (or any
successor provision thereof applicable to the Bond) and the applicable regulations thereunder
through the term of the Bond. The City further covenants that it will not take any action or
permit any action to be taken that would cause the Bond to constitute a “private activity bond”
under Section 141 of the Code.
(b) Post-Issuance Compliance. The Finance Director is authorized and directed to
adopt and implement the City’s written procedures to facilitate compliance by the City with the
covenants in this ordinance and the applicable requirements of the Code that must be satisfied
after the issue date to prevent interest on the draws on the Bond from being included in gross
income for federal tax purposes.
(c) Designation of the Bond as a “Qualified Tax-Exempt Obligation.” The City
designates the Bond as a “qualified tax-exempt obligation” for the purposes of Section 265(b)(3)
of the Code, and makes the following findings and determinations:
(1) the Bond does not constitute a “private activity bond” within the meaning
of Section 141 of the Code;
(2) the reasonably anticipated amount of tax-exempt obligations (other than
private activity bonds and other obligations not required to be included in such calculation) that
the City and any entity subordinate to the City (including any entity that the City controls, that
derives its authority to issue tax-exempt obligations from the City, or that issues tax-exempt
obligations on behalf of the City) will issue during the calendar year in which the Bond is issued
will not exceed $10,000,000; and
(3) the amount of tax-exempt obligations, including the Bond, designated by
the City as “qualified tax-exempt obligations” for the purposes of Section 265(b)(3) of the Code
during the calendar year in which the Bond is issued does not exceed $10,000,000.
Section 9. Sale of the Bond. The sale of the Bond to the Bank, under the terms and
conditions of this ordinance and the Proposal to purchase the Bond is hereby approved and
confirmed. Upon delivery of the Bond, the City shall pay to the Bank a fee of $1,250.
Section 10. Reporting Requirements. While the Bond is outstanding, the City shall
submit its annual financial reports to the Bank along with such additional information as the
Bank may reasonably request.
Section 11. Governing Law. The Bond shall be governed and interpreted according to
the laws of Washington. Nothing in this paragraph shall be construed to limit or otherwise affect
any rights or remedies of the Bank under federal law.
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51381279.1
Section 12. General Authorization and Ratification. The Mayor, City Administrator,
Finance Director and other appropriate officers of the City are severally authorized to take such
actions and to execute such documents as in their judgment may be necessary or desirable to
carry out the transactions contemplated in connection with this ordinance, and to do everything
necessary for the prompt delivery of the Bond to the Bank thereof and for the proper application,
use and investment of the proceeds of the Bond. All actions taken prior to the effective date of
this ordinance in furtherance of the purposes described in this ordinance and not inconsistent
with the terms of this ordinance are ratified and confirmed in all respects.
Section 13. Severability. The provisions of this ordinance are declared to be separate
and severable. If a court of competent jurisdiction, all appeals having been exhausted or all
appeal periods having run, finds any provision of this ordinance to be invalid or unenforceable as
to any person or circumstance, such offending provision shall, if feasible, be deemed to be
modified to be within the limits of enforceability or validity. However, if the offending
provision cannot be so modified, it shall be null and void with respect to the particular person or
circumstance, and all other provisions of this ordinance in all other respects, and the offending
provision with respect to all other persons and all other circumstances, shall remain valid and
enforceable.
Section 14. Effective Date of Ordinance. This ordinance shall take effect and be in
force from and after its passage and five days following its publication as required by law.
PASSED by the City Council and APPROVED by the Mayor of the City of Arlington,
Washington, at an open public meeting thereof, this 7th day of July, 2014.
Mayor
ATTEST:
City Clerk
APPROVED AS TO FORM:
Bond Counsel
51381279.1
CERTIFICATION
I, the undersigned, City Clerk of the City of Arlington, Washington (the “City”), hereby
certify as follows:
1. The attached copy of Ordinance No. ____ (the “Ordinance”) is a full, true and correct
copy of an ordinance duly passed at a regular meeting of the City Council of the City held at the
regular meeting place thereof on July 7, 2014, as that ordinance appears on the minute book of
the City.
2. The Ordinance will be in full force and effect five days after publication in the City’s
official newspaper, which publication date was _________, 2014.
3. A quorum of the members of the City Council was present throughout the meeting
and a majority of the members voted in the proper manner for the passage of the Ordinance.
Dated: ____________, 2014.
CITY OF ARLINGTON, WASHINGTON
City Clerk
City of Arlington
Council Agenda Bill
Item:
NB #3
Attachment
E
COUNCIL MEETING DATE:
July 7, 2014
SUBJECT:
Bystrom House Recovery, Salvage and Removal Project Bid Award
ATTACHMENTS:
- Bid Tabulation, SkyCorp, LTD Bidder Responsibility Check
DEPARTMENT OF ORIGIN
Public Works – Jim Kelly
EXPENDITURES REQUESTED: $ 19,257.60 (Low Bidder)
BUDGET CATEGORY: Water Capital Funds
LEGAL REVIEW:
DESCRIPTION:
The Bystrom House Recovery, Salvage and Removal Project advertised on the Small
Works Roster with five bids received on June 12, 2014; the low bidder is SkyCorp, LTD.
HISTORY:
The Bystrom Residence is a 1,977 square foot a two-story single family residence building
located on the southwest corner of West Cox Ave and West Ave. The Water Department
purchased the former Bystrom property and house in 2012 in order to plan for future
expansion of the utility plant. City Council declared the property surplus in April 2014
and the Recovery, Salvage and Removal Project was advertised to contractors on the Small
Works Roster. Five bids were received and staff has reviewed the low bid submitted by
SkyCorp LTD. and determined they are qualified to complete the project.
ALTERNATIVES
• Reject Bids, re-advertise the project
• Remand to staff for further evaluation
RECOMMENDED MOTION:
I move to move to accept the SkyCorp, LTD bid for the Bystrom House Recovery, Salvage
and Removal Project and award the contract to SkyCorp in the amount of $ 19,257.60,
pending final review by the City Attorney.
Skycorp, LTD Absolute Constr. Wrecking Ball William Dickson Pioneer Constr.
Bid Amount 17,700.00$ 31,845.00$ 32,817.06$ 42,700.00$ 43,712.00$
Sales Tax (8.8%) 1,557.60$ 2,802.36$ 2,887.90$ 3,757.60$ 3,846.66$
Total Bid 19,257.60$ 34,647.36$ 35,704.96$ 46,457.60$ 47,558.66$
104 W. Cox House Recovery, Salvage & Removal Bid Tab Results
City of Arlington
Council Agenda Bill
NB #4
Attachment
F
COUNCIL MEETING DATE:
July 7, 2014
SUBJECT:
Settlement Agreement with Timothy Riddle
ATTACHMENTS:
Settlement Agreement and Release between the City of Arlington and Timothy Riddle
DEPARTMENT OF ORIGIN
Community & Economic Development
EXPENDITURES REQUESTED: NONE
BUDGET CATEGORY: N/A
LEGAL REVIEW:
DESCRIPTION:
The attached Settlement Agreement and Release requires Council approval for Mayoral
signature.
The Dismissal of the Lawsuit requires Council authorization.
HISTORY:
Timothy Riddle began operating a construction debris recycling facility on January 8, 2014, in
the City of Arlington, located at 20015 67th Avenue NE, without first securing necessary
permits. The City issued a Notice of Violation on April 8, 2014, specifying corrective action
required to avoid penalties. Timothy Riddle did not appeal the Notice of Violation within 10
days, and as a result the Notice of Violation is a final determination. The City commenced
the lawsuit under Snohomish County Superior Court Case Number 14-2-03548-7 against
Riddle. The parties wish to resolve the lawsuit without incurring substantial additional cost.
ALTERNATIVES
Approve Staff’s Recommendation with Modifications
Table Staff’s Recommendation
Deny Staff’s Recommendation
RECOMMENDED MOTION:
I move to authorizer the Mayor sign the Settlement Agreement and Release to settle the
lawsuit brought against Timothy Riddle.
City of Arlington
Council Agenda Bill
Item:
NB #5
Attachment
G
COUNCIL MEETING DATE:
July 7, 2014
SUBJECT:
Draft ordinance addressing aggressive solicitation, begging, and camping issues
ATTACHMENTS:
Draft Ordinance
DEPARTMENT OF ORIGIN
Legal, Steve Peiffle – 360-435-2168; Police, Commander Brian DeWitt & Sergeant Jon
Ventura
EXPENDITURES REQUESTED: -0-
BUDGET CATEGORY: N/A
LEGAL REVIEW:
DESCRIPTION:
The city has received a significant number of complaints in the past few weeks
regarding transients and their behaviors. Members of the Police department worked
with the City Attorney and the City’s Prosecutor to develop the attached draft
ordinance which will provide our police officers with some tools to help address some
of the behaviors that are objectionable to the community. The proposed tools are
currently being used in other local jurisdictions in Snohomish County with a relative
amount of success.
HISTORY:
ALTERNATIVES
RECOMMENDED MOTION:
I move to approve the proposed ordinance amending Arlington Municipal Code Title 9
and adopting a new chapter relating to pedestrian interference, unlawful camping and
related matters
ORDINANCE NO. 2014-XXX 1
ORDINANCE NO. 2014--XXX
AN ORDINANCE OF THE CITY OF ARLINGTON, WASHINGTON
AMENDING ARLINGTON MUNICIPAL CODE TITLE 9 AND ADOPTING A NEW
CHAPTER RELATING TO PEDESTRIAN INTERFERENCE, UNLAWFUL CAMPING AND
RELATED MATTERS
WHEREAS, the City of Arlington, Washington has the authority to enact laws to protect
citizens and visitors to the City; and
WHEREAS, the City Council believes it is in the best interests of its citizens to amend
certain provisions of the City criminal code as it relates to camping and pedestrian interference;
NOW, THEREFORE, the City Council of the City of Arlington do hereby ordain as
follows:
Section 1. Arlington Municipal Code section 9.08.030 shall be and hereby is repealed.
Section 2. A new chapter of the Arlington Municipal Code shall be and hereby is
adopted to read as follows:
PUBLIC SOLICITATION AND CAMPING
9.56.010 Findings.
9.56.020 Definitions.
9.56.030 Pedestrian interference.
9.56.040 Pedestrian interference - Exceptions
9.56.050 Coercive solicitation – Prohibited.
9.56.060 Time of Solicitation
9.56.070 Place of Solicitation
9.56.080 Penalty for pedestrian interference, coercive solicitation, or any violation of
the time and/or place of solicitation restrictions.
9.56.090 Unlawful camping.
9.56.100 Storage of personal property in public places.
9.56.110 Penalty for camping violations.
9.56.120 Permit.
ORDINANCE NO. 2014-XXX 2
9.56.010 Findings.
Consistent with the findings of other Washington State Cities, the city council finds that
it is important to the general welfare of the citizens and residents of the city to protect and
preserve the public safety of pedestrians and to insure the safe and efficient movement of
pedestrian and vehicular traffic in public places. The city council further finds that public places
as defined in this section serve the primary purpose of enabling pedestrian and vehicular traffic
to safely and efficiently mover about from place to place and that public places have become
increasingly congested and should be maintained to serve their primary purpose. Arlington, as
well as other cities in Washington, has experienced an increase in the number of incidents of
aggressive solicitation by individuals towards pedestrians and vehicular traffic and that such
interference in public places deteriorates from the primary purpose and threatens public health,
safety and welfare. The city has a compelling interest in protecting its citizens from threatening,
intimidating or harassing behavior caused by aggressive coercive solicitations, in preserving the
quality of life and in protecting and preserving public health, safety and welfare while
discouraging the use of public parks as temporary living quarters.
9.56.020 Definitions.
The following definitions apply in this chapter:
(1) “Coercive solicitation” means to solicit with the intent to intimidate or coerce another
person into giving money or goods.
(2) “Solicit” means to ask for money or goods as a charity, whether by words, bodily
gestures, signs, or other means.
(3) “Camp” means to pitch or occupy camp facilities, to use camp paraphernalia.
(4) “Camp facilities” include, but are not limited to, tents, huts or temporary shelters.
(5) “Camp paraphernalia” includes, but is not limited to, tarpaulins, cots, beds, sleeping bags,
hammocks or non-city designated cooking facilities and similar equipment.
(6) “Coerce” or “coercive” means to do any of the following with intent:
(a) To approach, speak or gesture to a person in such a manner as would cause a
reasonable person to believe that the person is being threatened with a commission of a criminal
act upon the person, another person or property in the person’s possession; or
(b) To approach within one foot of a person for the purpose of making a solicitation
without obtaining said person’s initial consent; or
(c) To persist in a solicitation after the person solicited has given a negative response; or
(d) To impede the passage of a person, pedestrian traffic, a vehicle or vehicular traffic
while making a solicitation including, but not limited to, public places adjacent to any public
roadway where the solicitation is directed or intended to attract the attention of the occupant of
any vehicle stopped or traveling on the roadway, unless said vehicle is legally parked; or
(e) To engage in conduct that would reasonably be construed as intended to compel or
force a person being solicited to accede to demands; or
(f) To make any false or misleading representation in the course of making a solicitation.
(g) Soliciting in a manner that exploits children.
(h) Solicit under the influence of alcohol and or controlled substances.
ORDINANCE NO. 2014-XXX 3
(7) “Intimidate” means to engage in conduct which would make a reasonable person fearful
or feel compelled.
(8) “Obstruct pedestrian or vehicular traffic” means to walk, stand, sit, lie, or place an object
in such a manner as to block passage by another person or a vehicle, or to require another person
or a driver of a vehicle to take evasive action to avoid physical contact. Acts authorized as an
exercise of one’s constitutional right to picket or to legally protest, and acts authorized by a
permit issued pursuant to Chapter 5.44 of the Arlington Municipal Code, shall not constitute
obstruction of pedestrian or vehicular traffic.
(9) “Park” means those areas subject to the executive and administrative responsibility of the
city parks, arts and recreation commission established by Chapter 2.40 of the Arlington
Municipal Code.
(10) “Public place” means an area generally visible to public view and includes alleys,
bridges, buildings, driveways, parking lots, parks, park paths and trails, plazas, sidewalks and
streets open to the general public, and rights of way open to the use of the public, including those
that serve food or drink or provide entertainment, and the doorways and entrances to buildings or
dwellings and the grounds enclosing them.
(11) “Solicitation” for the purposes of this chapter is any means of asking, begging,
requesting, or pleading made in person, orally or in a written or printed manner, directed to
another person, requesting an immediate donation of money, contribution, alms, financial aid,
charity, gifts of items or service of value, or the purchase of an item or service for an amount far
exceeding its value, under circumstances where a reasonable person would understand that the
purchase is in substance a donation.
(12) “Store” means to put aside or accumulate for use when needed, to put for safekeeping,
to place or leave in a location.
(13) “Street” means any highway, lane, road, street, right-of-way, boulevard, alley and every
way or place within Arlington open as a matter of right to public vehicular travel.
(14) “Automated Teller Machine” means a machine, other than a telephone; (1) that is
capable of being operated by a customer of a financial institution; (2) by which the customer may
communicate with the financial institution a request to withdraw, deposit, transfer funds, make
payment, or otherwise conduct financial business for the customer or for another person directly
from the customer’s account or from the customer’s account under a line of credit previously
authorized by the financial institution for the customer; and (3) the use of which may or may not
involve personnel of a financial institution.
(15) “Financial Institution” means any banking corporation, credit union, foreign exchange
office. For purposes of this section, it shall also include any check cashing business.
(16) “Exploit children” shall mean using children in an unethical, selfish, or abusive manner
or in any other manner that gives unfair advantage.
(17) “Public Transportation Facility” means a facility or designated location that is owned,
operated, or maintained by a city, county, county transportation authority, public transportation
benefit area, regional transit authority, or municipal corporation within the state for the purpose
of facilitating bus or other public transportation.
(18) “Public Transportation Vehicle” means any vehicle that is owned by a city, county,
county transportation authority, public transportation benefit area, regional transit authority, or
ORDINANCE NO. 2014-XXX 4
municipal corporation with the state for the purpose of facilitating bus or other public
transportation.
(19) “On and off ramps” refers to the areas commonly used to enter and exit public state
route or interstate highway from any city roadway or overpass.
9.56.030 Pedestrian interference.
A person is guilty of pedestrian interference if, in a public place, he or she intentionally:
(1) Obstructs pedestrian or vehicular traffic; or
(2) Coercively solicits.
9.56.040 Pedestrian interference – Exceptions
The prohibitions in AMC 9.56.030 shall not apply to any person:
(1) Sitting or lying down on a public sidewalk due to a medical emergency;
(2) Who, as the result of a disability, utilizes a wheelchair, walker, or similar device to
move about the public sidewalk;
(3) Operating or patronizing a commercial establishment conducted on the public
sidewalk pursuant to a street use permit; or a person participating in or attending a
parade, festival, performance, rally, demonstration, meeting, or similar event conducted
on the public sidewalk pursuant to a street use or other applicable permit;
(4) Sitting on a chair or bench located on the public sidewalk which is supplied by a
public agency; or
(5) Sitting on a bench or public sidewalk within a public transportation facility.
9.56.050 Coercive solicitation – Prohibited.
It shall be unlawful for a person to make coercive solicitation.
9.56.060 Time of Solicitation
It shall be unlawful to make solicitation to a person, pedestrian traffic, a vehicle or vehicular
traffic on public property before eight a.m. or after eight p.m.
9.56.070 Place of Solicitation
It shall be unlawful to solicit at the following places:
(1) Within 300 feet of an on or off ramp;
(2) Within 300 feet of any roadway intersection, City Park, school zone or
daycare/preschool if children are present, nursing home or assisted living facility,
financial institution or automated teller machine, public transportation facility or
public parking lot;
(3) On private property, unless the solicitor has prior written permission from the
owner or occupant;
(4) On any public transportation vehicle; or
(5) Within 25 feet of any occupied handicapped parking space.
ORDINANCE NO. 2014-XXX 5
9.56.080 Penalty for pedestrian interference, coercive solicitation, or any violation of the
time and/or place of solicitation restrictions.
Pedestrian interference is a misdemeanor. Coercive solicitation is a misdemeanor.
Violation of the time and/or place of solicitation restrictions is a misdemeanor.
(1) First Offense. Any person violating any of the provisions of this chapter shall, upon
conviction of such violation, be punished by a fine of not more than $1,000 or by
imprisonment not to exceed 90 days, or by both such fine and imprisonment.
(2) Second Offense. Every person who violates any of the provisions of this chapter a
second time within a five-year period shall be guilty of a misdemeanor, punishable by a
fine of not more than $1,000 or by imprisonment not to exceed 90 days, or by both such
fine and imprisonment. One hundred dollars of the fine and one day of imprisonment
shall not be suspended or deferred.
(3) Third or Subsequent Offense. Every person who violates any of the provisions of this
chapter a third or more times within a five-year period shall be guilty of a misdemeanor,
punishable by a fine of not more than $1,000 or by imprisonment not to exceed 90 days,
or by both such fine and imprisonment. Five hundred dollars of the fine and five days’
imprisonment shall not be suspended or deferred.
9.56.090 Unlawful camping.
It shall be unlawful for any person to camp, occupy camp facilities or use camp
paraphernalia in the following areas, except as otherwise provided by ordinance or as permitted
pursuant to AMC 9.56.120:
(1) Any park;
(2) Any publicly owned parking lot or publicly owned area, improved or unimproved; or
(3) On private property, without prior written permission from the owner or occupant.
9.56.100 Storage of personal property in public places.
It shall be unlawful for any person to store personal property, including camp facilities
and camp paraphernalia, in the following areas, except as otherwise provided by ordinance or as
permitted pursuant to AMC 9.56.120:
(1) Any park;
(2) Any publicly owned parking lot or publicly owned area, improved or unimproved.
(3) On private property, without prior written permission from the owner or occupant.
9.56.110 Penalty for camping violations.
Violation of any of the provisions of this chapter is a misdemeanor, and shall be punished
as follows:
(1) First Offense. Any person violating any of the provisions of this chapter shall, upon
conviction of such violation, be punished by a fine of not more than $1,000 or by
imprisonment not to exceed 90 days, or by both such fine and imprisonment.
(2) Second Offense. Every person who violates any of the provisions of this chapter a
second time within a five-year period shall be guilty of a misdemeanor, punishable by a
fine of not more than $1,000 or by imprisonment not to exceed 90 days, or by both such
ORDINANCE NO. 2014-XXX 6
fine and imprisonment. One hundred dollars of the fine and one day of imprisonment
shall not be suspended or deferred.
(3) Third or Subsequent Offense. Every person who violates any of the provisions of this
chapter a third or more times within a five-year period shall be guilty of a misdemeanor,
punishable by a fine of not more than $1,000 or by imprisonment not to exceed 90 days,
or by both such fine and imprisonment. Five hundred dollars of the fine and five days’
imprisonment shall not be suspended or deferred.
9.56.120 Permit.
(1) The chief of police or his or her designee is authorized to permit persons to camp, occupy
camp facilities, use camp paraphernalia, or store personal property in parks, streets, or any
publicly owned parking lot or publicly owned area, improved or unimproved, in the city of
Arlington.
(2) The chief of police or his or her designee shall approve a permit as provided under this
section when, from a consideration of the application and from such other information as may
otherwise be obtained, the chief or his or her designee finds that:
(a) Adequate sanitary facilities are provided and accessible at or near the camp site;
(b) Adequate trash receptacles and trash collection is to be provided;
(c) The camping activity will not unreasonably disturb or interfere with the peace,
comfort and repose of private property owners; and
(d) The camping activity is not reasonably likely to cause injury to persons or property, to
provoke disorderly conduct or create a disturbance.
(3) The chief of police or his or her designee is authorized to promulgate rules and regulations
regarding the implementation and enforcement of this chapter.
(4) No permit shall be issued for a period of time in excess of seven calendar days.
(5) Any person denied a permit may appeal the denial to city council. Notice of appeal must be
in writing, and filed with the city clerk within seven calendar days from the date notice of the
denial is received.
ORDINANCE NO. 2014-XXX 7
Section 3. Severability. If any provision, section, or part of this ordinance shall be
adjudged to be invalid or unconstitutional, such adjudication shall not affect the validity of the
ordinance as a whole or any section, provision or part thereof not adjudged invalid or
unconstitutional.
Section 4. Effective Date. This ordinance shall be effective five days from its adoption
and publication as required by law.
PASSED BY the City Council and APPROVED by the Mayor this _____ day of
_______________, 2014.
CITY OF ARLINGTON
Barbara Tolbert, Mayor
Attest:
Kristin Banfield, City Clerk
Approved as to form:
Steven J. Peiffle
City Attorney
City of Arlington
Council Agenda Bill
Item:
NB #6
Attachment
H
COUNCIL MEETING DATE:
July 7, 2014
SUBJECT:
Amendment to the Snohomish County Housing & Community Development Urban County
Consortium Interlocal Agreement
ATTACHMENTS:
Letter from Snohomish County Human Services
Amendment to the Snohomish County Housing & Community Development Urban County
Consortium Interlocal Agreement
Original Interlocal Agreement executed July 1999.
DEPARTMENT OF ORIGIN
Administration, Kristin Banfield – 360-403-3444
EXPENDITURES REQUESTED: -0-
BUDGET CATEGORY: N/A
LEGAL REVIEW:
DESCRIPTION:
The cities and Snohomish County formed the Urban County Consortium in 1999 to increase the
level of assured annual funding from the US Department of Housing and Urban Development
(HUD) to help meet affordable housing and community development needs in our greater
Snohomish County community. Every three years, HUD requires Snohomish County to renew
the Interlocal Agreement. For this renewal period, the participating jurisdictions must adopt
revised language in the Interlocal Agreement.
Membership in the Consortium allows jurisdictions to apply for funding under three different
HUD grant programs: Community Development Block Grant (CDBG), HOME Investment
Partnership (HOME), and Emergency Solutions Grant (ESG). If we do not participate in the
consortium, we will have to apply for funding from the state, if any funding is available.
HISTORY:
The City has been a member of the Urban County Consortium since 1999.
ALTERNATIVES
RECOMMENDED MOTION:
I move to approve the amendment to the Snohomish County Housing & Community
Development Urban County Consortium Interlocal Agreement and authorize the Mayor to sign
it.
City of Arlington
Council Agenda Bill
Item:
NB #7
Attachment
I
COUNCIL MEETING DATE:
July 7, 2014
SUBJECT:
Ordinance adopting revisions to the City’s park regulations to permit limited
consumption of beer and wine in certain City parks
ATTACHMENTS:
Draft ordinance
DEPARTMENT OF ORIGIN
Administration
EXPENDITURES REQUESTED: -0-
BUDGET CATEGORY: N/A
LEGAL REVIEW:
DESCRIPTION:
Arlington Arts Council wants to grow their event, Art in Park, scheduled for Sept 13-14.
They would like to include beer and wine tasting by local breweries and wineries. To
allow for this in an Arlington Park, the city would need to re-vise the no-alcohol in
parks ordinance. PARC has recommend that City Council allow been and wine tasting
only events in conjunction with approved special events in Legion Park only,
sponsored by non-profits during the hours of noon and 10PM.
HISTORY:
AAC president Sarah Arney proposed the idea to the PARC Commission. PARC
discussed the proposal in several meetings this year. During the April 22, 2014 PARC
meeting, Commissioners voted to recommend to City Council to allow the beer and
wine tasting events.
Council reviewed this matter at the June 9, 2014 Council Workshop and requested an
ordinance be developed. PARC reviewed the draft ordinance at the June 25, 2014
meeting and recommended it be brought to Council for approval.
ALTERNATIVES
Deny request.
RECOMMENDED MOTION:
I move to approve the proposed Ordinance adopting revisions to the City’s park
regulations to permit limited consumption of beer and wine in certain City parks.
ORDINANCE NO. 2014-XXX 1
ORDINANCE NO. 2014--XXX
AN ORDINANCE OF THE CITY OF ARLINGTON, WASHINGTON
ADOPTING REVISIONS TO THE CITY’S PARK REGULATIONS TO PERMIT LIMITED
CONSUMPTION OF BEER AND WINE IN CERTAIN CITY PARKS
WHEREAS, the City of Arlington has the authority to regulate city owned park lands
within the City; and
WHEREAS, the City of Arlington has received a request from the Arlington Arts Council
to permit beer and wine tasting in special events in Legion Park; and
WHEREAS, the City’s Parks, Arts and Recreation Council (PARC) has recommended
amendment of the ordinance; and
WHEREAS, the City Council wishes to approve the amendments to the city’s park
regulations;
NOW, THEREFORE, the City Council of the City of Arlington do hereby ordain as
follows:
Section 1. Arlington Municipal Code Section 20.64.060(a) shall be and hereby is
amended to read as follows:
22.04.200 Alcoholic beverages prohibited except in conjunction with special events
permit.
It is unlawful to bring into or consume alcoholic beverages in a park or facility; provided,
however, that nonprofit entities may be authorized to conduct beer or wine tasting events
in conjunction with a special events use permit authorized under AMC Chapter 5.44.
Any such permit shall limit the beer and wine consumption to beer and wine tasting only,
to occur between the hours of 12:00 noon and 10:00 p.m. and only in Legion Park. . Any
such permit shall be further subject to subject to all applicable requirements and
regulations of the Washington State Liquor Control Board and any required Liquor
Control Board permits.
Section 2. Severability. If any provision, section, or part of this ordinance shall be
adjudged to be invalid or unconstitutional, such adjudication shall not affect the validity of the
ordinance as a whole or any section, provision or part thereof not adjudged invalid or
unconstitutional.
Formatted: Underline
ORDINANCE NO. 2014-XXX 2
Section 3. Effective Date. This ordinance shall be effective five days from its adoption
and publication as required by law.
PASSED BY the City Council and APPROVED by the Mayor this _____ day of
_______________, 2014.
CITY OF ARLINGTON
Barbara Tolbert, Mayor
Attest:
Kristin Banfield, City Clerk
Approved as to form:
Steven J. Peiffle
City Attorney
City of Arlington
Council Agenda Bill
Item:
NB #8
Attachment
J
COUNCIL MEETING DATE:
July 7, 2014
SUBJECT:
Approval of successor Collective Bargaining Agreement with the IAFF Local No. 3728
for 2014-2016
ATTACHMENTS:
Collective Bargaining Agreement with IAFF Local No. 3728
DEPARTMENT OF ORIGIN
Administration
EXPENDITURES REQUESTED: -0-
BUDGET CATEGORY: N/A
LEGAL REVIEW:
DESCRIPTION:
Council is requested to authorize the Mayor to sign the 2014-16 Collective Bargaining
Agreement with the IAFF Local No. 3728. There is a 0% COLA and no changes to
health insurance benefits for 2014. There is one opportunity to open the contract to
discuss wages and health insurance benefits only.
IAFF Local No. 3728 unanimously ratified the attached agreement at their June 30, 2014
Union meeting.
HISTORY:
ALTERNATIVES
RECOMMENDED MOTION:
I move to authorize the Mayor to sign the Collective Bargaining Agreement with IAFF
Local No. 3728.
Ratified Collective Bargaining Agreement
2011 – 2013 IAFF Local No. 3728
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AGREEMENT
by and between
THE CITY OF ARLINGTON
and
ARLINGTON FIREFIGHTERS ORGANIZATION
LOCAL NO. 3728
INTERNATIONAL ASSOCIATION OF FIREFIGHTERS
January 1, 2014 through December 31, 2016
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2014 – 2016 IAFF Local No. 3728
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TABLE OF CONTENTS
ARTICLE 1 PREAMBLE.............................................................................................. 1
ARTICLE 2 RECOGNITION AND UNION MEMBERSHIP ..................................... 1
ARTICLE 3 DURATION .............................................................................................. 2
ARTICLE 4 MANAGEMENT RIGHTS ...................................................................... 2
ARTICLE 5 NON-DISCRIMINATION........................................................................ 3
ARTICLE 6 NO STRIKES OR LOCKOUTS ............................................................... 3
ARTICLE 7 SEPARABILITY AND SAVINGS .......................................................... 4
ARTICLE 8 MERGERS, ACQUISITIONS, ALLIANCES OR CONSOLIDATIONS 4
ARTICLE 9 UNION BUSINESS AND BULLETIN BOARD ..................................... 4
ARTICLE 10 PERFORMANCE EVALUATION ....................................................... 5
ARTICLE 11 DISCIPLINE ......................................................................................... 5
ARTICLE 12 GRIEVANCE PROCEDURE ............................................................... 7
ARTICLE 13 HOURS OF WORK .............................................................................. 9
ARTICLE 14 HEALTH AND WELFARE INSURANCE BENEFITS .................... 11
ARTICLE 15 ACTING PAY ..................................................................................... 12
ARTICLE 16 INCENTIVE PAY ............................................................................... 13
ARTICLE 17 LONGEVITY PAY ............................................................................. 14
ARTICLE 18 CALLBACK PAY / OVERTIME ....................................................... 14
ARTICLE 19 SHIFT VACANCIES .......................................................................... 14
ARTICLE 20 HOLIDAYS ......................................................................................... 15
ARTICLE 21 VACATION LEAVE .......................................................................... 16
ARTICLE 22 SICK LEAVE ...................................................................................... 17
ARTICLE 23 SHARED LEAVE ............................................................................... 18
ARTICLE 24 MILITARY LEAVE............................................................................ 18
ARTICLE 25 FAMILY & MEDICAL LEAVE ........................................................ 18
ARTICLE 26 JURY DUTY ....................................................................................... 19
ARTICLE 27 BEREAVEMENT LEAVE ................................................................. 19
ARTICLE 28 PERSONAL LEAVES OF ABSENCE ............................................... 19
ARTICLE 29 PROBATION & EVALUATION PERIODS...................................... 19
ARTICLE 30 SENIORITY ........................................................................................ 20
ARTICLE 31 LEGAL PROTECTION ...................................................................... 20
ARTICLE 32 PREVAILING RIGHTS ...................................................................... 20
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ARTICLE 33 LIGHT DUTY ..................................................................................... 20
ARTICLE 34 SHIFT BIDS ........................................................................................ 21
ARTICLE 35 PERSONNEL REDUCTION .............................................................. 22
ARTICLE 36 PHYSICAL FITNESS ......................................................................... 23
ARTICLE 37 SHIFT EXCHANGES ......................................................................... 24
ARTICLE 38 PROMOTIONS ................................................................................... 25
ARTICLE 39 PARAMEDIC VESTING.................................................................... 25
ARTICLE 40 MEDICAL CERTIFICATION AND TRAINING .............................. 26
ARTICLE 41 UNIFORMS AND CLOTHING ......................................................... 26
ARTICLE 42 TRAINING CAPTAIN........................................................................ 27
ARTICLE 43 DEFERRED COMPENSATION PROGRAM ................................... 28
ARTICLE 44 LATERAL TRANSFER EMPLOYEES ............................................. 29
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ARTICLE 1 PREAMBLE
1.1 This Agreement is entered into effective January 1, 2014, between the City of
Arlington and Local No. 3728, International Association of Firefighters. The
parties recognize that the Mayor is the Chief Executive Officer and the Fire Chief,
or designee, is the official of the day-to-day operations of the Fire Department.
Accordingly, the term “Employer” and “City” shall be used herein and shall apply
interchangeably to those officials or their authorized designees. Local No. 3728,
IAFF, shall herein be referred to as the “Union” or “Bargaining Unit Members.”
1.2 The Employer and the Union recognize the need to provide efficient service to the
public and to enhance the quality of service. Further, both parties agree to the
need for establishing and maintaining a sound labor-management relationship and
mutually agree to continue working toward this goal. Each party has been
afforded the opportunity to put forth all its proposals and to bargain in good faith
and both parties agree that this Agreement expresses the results of their
negotiations. Therefore, to ensure the stability of this Agreement, no new
provisions shall be proposed during the term of the Agreement, unless provided
for elsewhere in this Agreement or such specific proposal is entertained by mutual
agreement of the parties in writing.
ARTICLE 2 RECOGNITION AND UNION MEMBERSHIP
2.1 The Employer recognizes the Union as the sole and exclusive bargaining agent for
all regular full-time uniformed Fire And Emergency Medical Service employees
of the City of Arlington Fire Department, excluding the Chief, deputy and
division chiefs, confidential employees, part-time employees, per diem personnel
and non-uniformed employees, consistent with Public Employment Relations
Commission Decision 5814, Case 12858-E-96-2152, dated January 30, 1997.
2.2 All employees covered by this Agreement shall, as a condition of continued
employment, within thirty-one (31) days of employment become and remain
members of the Union in good standing. Any employee who fails to comply shall
be terminated.
2.3 If, due to religious conviction, an employee does not wish to be a member of the
Union, the employee may pay an amount equal to the monthly Union dues and
assessments to the Union who shall then transmit that amount to a non-religious
charity in the Arlington area agreeable to the employee affected and the Union.
The employee’s desired charity shall be stated in writing, signed by the employee,
and submitted to the Union president. An employee who does not wish to be a
member of the Union for any other reason may pay each month a service charge
equal to regular union dues and assessments to the Union.
2.4 Payroll Deduction – The Employer shall deduct from the pay of each employee
covered by this Agreement, upon their written authorization, the dues and fees of
the Union, and shall remit to said Union all such deductions monthly. The Union
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shall indemnify, defend, and hold the Employer harmless against any claims made
and against any suit instituted against the Employer on account of any check-off
of dues and fees for the Union. Changes in the amount of said deduction shall be
made twice annually, January 1 and July 1. Exceptions shall be for new
employees, as needed. The Union shall refund to the Employer any amounts paid
to it in error on account of this check-off provision upon presentation of proper
evidence thereof.
ARTICLE 3 DURATION
3.1 This Agreement shall become effective January 1, 2014 and shall remain in full
force through December 31, 2016. A notice shall specify the Articles subject to
negotiation.
3.2 Either party may reopen the Agreement on or after July 1, 2014, to bargain over
changes to wages and/or the insurance program (including changes to the plans
offered, payment of the premiums, and payment of any contributions to integrated
HRA accounts).
ARTICLE 4 MANAGEMENT RIGHTS
4.1 All the functions, rights, powers, and authority that are not specifically abridged,
delegated, or modified by this Agreement are recognized by the Union as being
retained by the Employer. These rights include, but are not limited to the
following:
4.1.1 To maintain efficiency and to make, alter, and enforce reasonable rules
and regulations to be observed by employees, provided such rules and
regulations are not contrary to the terms and conditions set forth in this
Agreement.
4.1.2 To direct, hire, promote, demote, transfer, and for just cause suspend,
discipline or dismiss employees.
4.1.3 To evaluate jobs, classify positions, establish qualifying requirements of
employees and specify employee duties.
4.1.4 To manage and operate the service in all respects and without restricting
the generality of the foregoing, to determine the number and location of
establishments, the services to be rendered, the methods, the work
procedures, the kinds and locations of instruments and equipment to be
used; to select, control, and direct the use of all materials required in the
operation of services to be provided and performed; to schedule work; to
make, alter, and enforce regulations governing the use of materials,
equipment, and services as may be deemed necessary by the Employer,
provided that such regulations are not contrary to the terms and conditions
set forth in this Agreement.
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4.2 Any conflict between the provisions of this Agreement and the City of Arlington
Civil Service Rules and Regulations shall be resolved as follows:
(a) to the extent the Agreement does not address a matter (i.e.,
discipline, seniority, layoffs, etc.), and Civil Service does, then Civil
Service shall prevail; and
(b) to the extent the Agreement addresses a matter (i.e., discipline,
seniority, layoffs, etc.) and Civil Service also does so, the Agreement shall
prevail.
4.3 The Employer and the Union agree that the statement of management rights
contained in this Article 4, shall be for illustrative purposes only and is not to be
construed or interpreted so as to exclude those prerogatives not mentioned which
are inherent to management including those prerogatives not granted by law. It is
the intention of the Employer and the Union that the rights, powers, authority and
functions of management shall remain exclusively vested in the Employer, except
insofar as expressly and specifically surrendered or limited by the express
provisions of the Agreement. The exercise of these rights shall not be subject to
the grievance procedure of this Amendment.
ARTICLE 5 NON-DISCRIMINATION
5.1 No employee shall be discriminated against for upholding Union principles or
serving on a Union Committee. The Employer and the Union shall not unlawfully
discriminate against any individual with respect to his/her hiring, compensation,
terms or conditions of employment because of such individual’s race, color,
religion, sex, national origin, Vietnam-era veteran status, marital status, or the
presence of any physical, mental or sensory handicap, or age, unless such is a
bona fide occupational qualification, nor shall they limit, segregate, or classify
employees in any way to deprive any individual employee of his/her employment
opportunities, except as such may be a bona fide occupational qualification.
5.2 Wherever words denoting a specific gender are used in this Agreement, they are
intended and shall be construed so as to apply equally to either gender.
ARTICLE 6 NO STRIKES OR LOCKOUTS
6.1 The Employer and the Union recognize that the public interest requires the
efficient and uninterrupted performance of all Employer’s services and to this end
pledge their best efforts to avoid or eliminate any conduct contrary to this
objective.
6.2 During the term of this Agreement, the Union shall not cause or condone any
work stoppage, strike, slowdown or other interference with Employer functions
by employees under this Agreement, and should same occur, the Union shall take
all steps to end such interference immediately. Employees who engage in any of
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the afore-referenced actions may be subject to disciplinary action up to and
including discharge. The Employer shall not lock out any employee during the
life of this Agreement.
6.3 Any claim by the Employer that the Union has violated this Article shall not be
subject to the grievance procedure of this Agreement and the Employer shall have
the right to submit such claims to the courts.
ARTICLE 7 SEPARABILITY AND SAVINGS
Should any provision(s) of this Agreement be held invalid by operation of law or by any
tribunal of competent jurisdiction, or if compliance or enforcement of any provision(s)
should be restrained by such tribunal pending a final determination as to its validity, the
remainder of this Agreement as it relates to persons or circumstances other than those to
which it has been held invalid shall not be affected thereby. In the event that any
provision of this Agreement is held invalid or enforcement of or compliance with has
been restrained, as hereinafter set forth, the Employer and the Union shall enter into
immediate collective bargaining negotiations upon the written request of either party for
the purpose of arriving at a mutually satisfactory replacement for such provisions during
the period of invalidity or restraint. Said negotiations shall be confined to the provision(s)
held to be invalid unless mutually agreed to by the City and the Union.
ARTICLE 8 MERGERS, ACQUISITIONS, ALLIANCES OR
CONSOLIDATIONS
In the event the City elects to combine, consolidate, acquire or relinquish any Fire or
EMS services during the term of this Agreement, the City shall negotiate the affects of
such action(s) with the Union pertaining to the wages, hours, and working conditions of
the present members of the bargaining unit.
ARTICLE 9 UNION BUSINESS AND BULLETIN BOARD
9.1 One Union official, who is an employee in the bargaining unit, may be granted
time off while conducting business vital to the employees of the bargaining unit
provided:
a. The Union or the employee notifies the Employer in writing a minimum of
forty-eight (48) hours prior to the start of the requested time-off period.
b. The Employer is able to properly staff the employee’s job duties during
the time-off period.
c. The wage cost to the Employer is no greater than the cost that would have
been incurred, had the Union official not taken the time off.
9.2 Union officials shall not transact Union business while working on shift, which in
any way interferes with the operation or normal routine of the Fire Department.
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9.3 The Union shall be allowed to hold its regular monthly meetings at either Fire
Station. On-duty personnel may attend the meetings and shall remain in service
and be alarm ready.
9.4 The Employer shall provide suitable space for a Union furnished bulletin board at
each station location in an area frequented by all employees within the bargaining
unit. The Union shall limit its posting of notices and bulletins to such bulletin
boards.
ARTICLE 10 PERFORMANCE EVALUATION
10.1 The purpose of evaluation is to help an employee be successful in performance
and to understand the standards and goals of their position and their department.
The evaluation will assess and focus on the employee’s accomplishment of their
job functions and the goals and standards of the position. Where the employee
does not meet the above, a plan for correction, training or support should be
developed with the employee.
10.2 Evaluation may occur in two forms:
10.2.1 All regular employees should be formally evaluated in writing by their
immediate supervisor and/or chief officer or designee during the
probationary and evaluation periods and at least annually (at date of hire
or a common date) thereafter.
10.2.2 Additionally, evaluation of job performance may occur at any time and on
an ongoing basis. Evaluation may occur in various ways and may include
coaching, counseling or written assessment.
The evaluation process shall also include a review of the current job description.
10.3 Evaluation shall not, by itself, constitute disciplinary action. Disciplinary action
must be specifically identified as such, in writing, consistent with Article 11.
10.4 Employees will be given a copy of their performance evaluation. Employees will
be required to sign the evaluation, acknowledging its receipt. Employees may
elect to provide a written response to the evaluation, which will be retained with
the evaluation in the employee’s personnel file.
ARTICLE 11 DISCIPLINE
11.1 Employees may be disciplined or discharged in good faith and for just cause.
Discipline should be applied at progressive levels to allow the employee proper
notice of misconduct and an opportunity to improve performance. The level or
degree of discipline imposed shall be appropriately based on the employee’s
severity of offense, the employee’s prior record of discipline and other relevant
factors.
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11.2 Investigations. Absent mutual agreement between the Union and the Employer,
which will not be unreasonably withheld, investigations will be concluded within
forty-five (45) calendar days of the Employer’s knowledge of the incident cited as
the basis for the investigation; provided that this timeline shall be sixty (60)
calendar days in those circumstances when the Employer uses an outside
investigator, when the investigation involves employees of other agencies, or
when there are accusations of criminal misconduct.
11.2.1 Duty to Cooperate. Employees have an obligation to cooperate with any
investigation conducted by the Employer.
11.2.2 Union Representation. Employees are entitled, at their request, to have
Union representation during any investigatory interview conducted by the
Employer that the employee reasonably believes may result in discipline
of the employee. An employee may also have a Union representative at a
pre-disciplinary hearing. During any such investigatory interview or pre-
disciplinary hearing, a participating Union representative will be given the
opportunity to ask questions, offer additional information and counsel the
employee, but may not obstruct the Employer’s investigation.
11.2.3 Administrative Leave. The Employer may, at its discretion, place
employees on paid administrative leave during disciplinary investigations.
Employees on paid administrative leave must remain reachable by phone
and available to return within reasonable commute time to the City during
on-duty hours, if required. Paid administrative leave is not discipline and
is not subject the grievance procedure.
11.3 Pre-Disciplinary Process. If the Employer intends to impose discipline that
involves a suspension, demotion or discharge, it shall first provide notice and an
opportunity for the employee to respond as follows:
11.3.1 Notice of Intent to Discipline. The Employer shall inform the employee
of the proposed discipline in writing within seven (7) calendar days after
the conclusion of the investigation as outlined in Section 11.2. The
written notice shall describe the event or conduct to permit the employee
to understand the reason for the proposed discipline.
11.3.2 Pre-Disciplinary Hearing. The Employer will schedule a Pre-Disciplinary
Hearing to permit the employee to respond to a notice of intent to
discipline. The pre-disciplinary hearing shall be scheduled within fourteen
(14) calendar days of the employee receiving the notice of intent to
discipline as outlined in 11.3.1. At the beginning of any Pre-Disciplinary
Hearing, the Employer will describe its proposed discipline and the
reasons for issuing the proposed discipline.
11.4 Disciplinary Decision. No later than fourteen (14) calendar days after the
conclusion of the Employer’s investigation or the Pre-Disciplinary Hearing,
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whichever occurs later, the Employer shall inform the employee of its disciplinary
decision in writing.
11.5 Disciplinary action or measure shall include only the following: (a) verbal
counseling, (b) written reprimand, (c) up to fourteen (14) calendar day suspension
without pay (maximum five (5) shifts for twenty-four (24) hour shift employees),
(d) demotion of pay class in accordance with Section 11.5.1 and 11.5.2 below,
and (e) discharge. All types of disciplinary action shall be documented (including
verbal reprimands).
11.5.1 Demotions of officers (Captains, Lieutenants) shall be based on the
provisions of Section 11.1 of this Agreement, and be permanent, except
that any officer demoted shall be eligible for any future promotions.
11.5.2 Demotions of non-officers shall be temporary and last no longer than six
(6) months, provided employee is meeting all performance standards as
outlined in performance evaluations and established expectations, as
evaluated by the Fire Chief or designee. Demotions will be for one class in
pay.
ARTICLE 12 GRIEVANCE PROCEDURE
12.1 Definition – A grievance is any dispute between the Employer and an employee
or the Union that may arise because of interpretation, application, or alleged
violation of any specific terms or provisions of this Agreement. Whenever
possible, grievances should be settled on an informal basis with an employee’s
immediate supervisor.
12.2 Grievances may be processed through either the Grievance Procedure or City of
Arlington Civil Service Rules and Regulations. The choice of the administrative
process shall preclude the utilization of the other.
12.3 Step 1 – If the grievance cannot be settled informally, the grievant shall present
his/her grievance to the Union President, who may appoint a committee to inquire
into the facts and/or circumstances of the complaint. If the complaint is found to
be valid, the President and/or grievance committee shall, within fifteen (15)
working days (non-weekend, non-holiday, non-furlough) of the act giving rise to
the complaint, or when the grievant should have reasonably known of the act
giving rise to the complaint, submit the grievance in writing to the Fire Chief or
designee. The written grievance shall include the following information:
a. The Article(s) of the Agreement allegedly violated
b. The facts of the matter
c. The remedy sought
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The Fire Chief or his/her designee shall issue a written response including his/her
decision and reasons therefore within ten (10) working days (non-weekend, non-
holiday, non-furlough) of receipt of the complaint. If settlement is not reached,
the grievant may submit an appeal of the grievance to the City Administrator or
designee for further consideration. Such appeal, including all paperwork pertinent
to the case, shall be submitted within ten (10) working days (non-weekend, non-
holiday, non-furlough) of the Fire Chief or designee’s decision.
12.4 Step 2 – The City Administrator or designee shall investigate the matter and issue
a written response within ten (10) working days (non-weekend, non-holiday, non-
furlough) of his/her receipt of the grievance. If settlement is not reached, the
grievant may submit the matter to the Mayor for further consideration. Such
appeal, including all paperwork pertinent to the case, shall be submitted within ten
(10) working days (non-weekend, non-holiday, non-furlough) of the City
Administrator or designee’s decision.
12.5 Step 3 – The Mayor or designee shall investigate the matter and issue a written
response within ten (10) working days (non-weekend, non-holiday, non-furlough)
of receipt of the grievance.
12.6 If settlement is not reached in Step 3, the Union may submit the matter to
mediation by providing notice to Employer of the desire for mediation in the
notice of appeal provided for in Step 2 or may submit the matter directly to
arbitration according to Section 12.7 below. Within fifteen (15) working days
(non-weekend, non-holiday, non-furlough) of the Union’s notification to
Employer of the Union’s desire to mediate, the two (2) parties shall agree upon a
mediator drawn from a panel of neutral mediators trained in grievance mediation.
Such mediator may be from PERC or other public or private mediation service.
The mediator will attempt to assure that all necessary facts and considerations are
disclosed, but will not have authority to compel resolution of the grievance. The
parties will not be limited solely to the facts and arguments presented at the earlier
steps of the grievance procedure. No transcript or record of the mediation
conference will be made, nor will formal rules of evidence be followed.
12.7 Arbitration – The Union may notify the Employer within ten (10) working days
(non-weekend, non-holiday, non-furlough) of the Mayor or designee’s decision,
or, if mediation is used, the end of mediation, in writing of the decision to submit
the matter to arbitration and the parties shall submit a joint request to the FMCS
or other mutually agreed to arbitration organization for a list of seven (7)
arbitrators from which the parties shall select a neutral using the traditional
striking method. The initial strike shall be determined by coin toss between the
two parties. Nothing herein shall prevent the parties from mutually agreeing to
another method of arbitrator selection.
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12.7.1 The arbitrator thus chosen shall hear both sides of the issue in closed
hearing and shall issue a decision which shall be final and binding to both
parties within thirty (30) calendar days.
12.7.2 The arbitrator shall be limited to determining whether there has been a
violation, misinterpretation, or improper application of the terms and
conditions of this Agreement and the appropriate remedy.
12.7.3 Expenses and compensation for arbiter services and the proceedings shall
be shared equally by both parties; provided, however, that each party shall
be completely responsible for all costs of preparing and presenting its own
case, including attorneys’ fees. If either party desires a record of the
proceedings, it shall solely bear the costs of obtaining such records.
12.8 It is the intent of the parties that all time limits shall be complied with; provided,
however, time limits may be extended by mutual written consent of both parties.
12.9 If no response is received from the Employer by the end of the time limit for its
consideration of the grievance, the grievant, or where applicable under Sections
12.6 and 12.7 above, the Union, may advance the grievance to the next Step.
12.10 If the grievant does not meet the time limits prescribed for its action, the
grievance shall be considered withdrawn.
ARTICLE 13 HOURS OF WORK
13.1 The City and the Union recognize that as the Fire Department grows, the need for
a variety of shifts and staffing patterns will need to change to best serve the public
within budget limitations.
13.2 Unless otherwise agreed to by the parties, personnel assigned to non-shift duty
will work either an eight (8) hour work shift consisting of five (5) consecutive
workdays, followed by two (2) consecutive days off or a ten (10) hour shift
consisting of four (4) consecutive workdays followed by three (3) days off. The
standard schedule for each eight (8) hour shift shall begin on Monday mornings at
a time specified by the Fire Chief or designee and last eight (8) consecutive hours
unless otherwise mutually agreed upon by the parties. Each ten (10) hour shift
shall normally begin at 0700 and end at 1700 hours unless otherwise mutually
agreed upon by the Union and the City consistent with the provisions of the Fair
Labor Standards Act.
13.3 Currently, D Shift is working 0600 to 1800 on Sunday, Monday, Tuesday and
every other Saturday. E Shift is working Wednesday, Thursday, Friday and every
other Saturday. This schedule shall remain in effect unless another schedule can
be mutually agreed upon by both parties. Any such new schedule must be
consistent with the requirements of the Fair Labor Standards Act.
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13.4 The standard twenty-four (24) hour shift shall consist of the following twenty-
four (24) day cycle:
48 HOURS = ON DUTY
96 HOURS = OFF DUTY
48 HOURS = ON DUTY
96 HOURS = OFF DUTY
48 HOURS = ON DUTY
96 HOURS = OFF DUTY
48 HOURS = ON DUTY
96 HOURS = OFF DUTY
Thus completing the twenty-four (24) day cycle. This shift shall begin at 0700
hours.
13.5 Each twenty-four (24) hour employee on the twenty-four (24) day cycle shall be
entitled to a total of fifteen (15) “Kelly” shifts. Employees shall be allowed to
choose their “Kelly” shifts following the process and requirements contained in
Article 20.
13.6 Each twenty-four (24) hour employee on the twenty-four (24) day cycle as of the
day this Agreement is fully executed will be entitled to one (1) additional Kelly
shift to be used prior to May 1, 2015. The scheduling of the Kelly shift provided
by this subsection cannot result in pre-planned overtime.
13.7 Other shift arrangements and schedules may be established by the Fire Chief or
designee, with input from the Union.
13.8 Changes in an individual work schedule shall begin at the start of the next Kelly
cycle following notification to the affected employee and the Union. Schedules
may be changed on shorter notice in the event of emergency conditions or if the
affected employee agrees to the schedule change on a shorter timeline. Such
schedule changes will be made for demonstrated need and offered to members
that qualify for the position by seniority.
13.9 Management has the right to establish shift arrangements. The scheduling of days
to work and days off shall go with the job and not the employee.
13.10 The Employer recognizes the need to maintain coverage on each twenty-four (24)
hour work shift as necessary in order to accommodate the vacation schedule and
other operational requirements as determined by the Fire Chief or designee. In the
event the City would like to utilize the floating shift in the future, the City and the
Union agree to negotiate the impact of any such move prior to its implementation.
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ARTICLE 14 HEALTH AND WELFARE INSURANCE BENEFITS
14.1 General – Eligibility and continued employee and dependent participation in any
group insurance or other financially based benefit plan provided by the Employer
shall be in accordance with the applicable Group Insurance Plan Document or
Master Plan Agreement.
14.2 Medical and Dental Benefit – The Employer agrees to pay the premium cost for
all employees and their dependents for the medical, dental and life insurance
coverage mutually agreed upon by the Union and the Employer less 1% of top
step firefighter, which will be paid by the Employee.
14.2.1 The Union and the Employer agree that the medical insurance will be
through LEOFF Health and Welfare Trust, Plan 6B.
14.2.2 Group Dental – The Employer shall pay one hundred percent (100%) of
the premiums for eligible enrolled employees and their dependents for
coverage under the AWC Group Dental Care Plan during the term of this
agreement.
14.2.3 Group Life and Accidental Death and Dismemberment Insurance (AD&D)
– The Employer shall pay one hundred percent (100%) of the premiums
for eligible enrolled employees only for coverage under the AWC Group
Life and AD&D Insurance Plan during the term of this Agreement.
14.3 Health Reimbursement Arrangement (HRA):
14.3.1 The Employer will establish a single account which holds all HRA funds.
All costs associated with the account are Employer costs. Monthly, the
Employer shall fund the HRA account with real dollars for each
bargaining unit member as follows:
Employee with no spouse or dependent $166.00
Employee with spouse and/or dependent $333.00
All interest and/or income accrued by the account (from October 31
through October 31of each year) shall be divided and deposited in equal
amounts into the Employees HRA’s (Employees who had HRA’s in the
previous year).
14.3.2 The HRA may be used for all IRS allowable expenses.
14.3.3 Accumulated balances will rollover each year with no cap on accumulated
account totals.
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14.3.4 Individual account funds shall rollover accumulated amounts as indicated
above and shall include a survivorship option in the event of the
Employees death and have continued reimbursement rights until all funds
are used.
14.3.5 Individuals separating from the Employer shall continue to have access to
their HRA balance (until depleted) as provided above. Employees
separating with a negative HRA balance shall have the amount deducted
from their final pay.
14.4 HRA Third Party Administrator - The HRA Third Party Administrator (TPA)
shall be determined through a cooperative effort of labor and management. All
costs associated with the TPA are Employer costs.
14.5 Benefits while on leave without pay or separation (within COBRA): The
Employer will make available to the Employee on leave without pay or separated
from the Employer the current medical and dental benefits at no cost to the
Employer to the extent allowed under COBRA Law.
14.6 Benefit while on Disability Leave: The Employer will provide Employees on
disability leave the benefit outlined in this Article.
14.7 Disability Insurance – The Union shall make available to each member of the
bargaining unit, a short and long-term group disability insurance policy
administered by the Washington State Council of Firefighters. The City shall
contribute twenty-five dollars ($25) per month for each enrolled bargaining unit
member during the term of this Agreement, in lieu of any City sponsored group
disability insurance plan. The City shall require proof of individual employee
coverage.
14.8 WSCFF Medical Trust The City will contribute Sixty and No/100 Dollars
($60.00) per month on behalf of each bargaining unit member toward the
Washington State Council of Fire Fighters Post Retirement Medical Trust.
ARTICLE 15 ACTING PAY
15.1 Any employee covered by this Agreement who is required to accept the
responsibilities and duties of an Acting Officer shall be compensated the flat
dollar amount that represents the difference between the then in effect Firefighter
First Class rate of pay and 50% of the incentive premium of that position for the
duration of the assignment. This shall not apply unless the position needs to be
filled for a time greater than eight (8) hours.
15.2 The following criteria shall be used for assignments to acting in the capacity as a
Captain:
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a. In the event there is an Acting Officer list, the vacancy shall be offered in
the order of the highest test score to the available on-shift
Firefighter/EMT’s who are on the list. If not filled in this manner, the
vacancy shall be filled by assignment in reverse seniority order.
b. In the event there is no available on-shift Firefighter/EMT on the Acting
Officer list, the vacancy shall be filled using the Department Overtime list
by assignment of the next qualified individual.
c. In the event there is no certified list for Acting Officer, the vacancy shall
be filled at the discretion of the Fire Chief or designee.
Firefighter/EMT’s who once are on the Civil Service Captain eligibility list shall
be considered to be on the Acting Officer list. Ranking on the Acting Officer list
shall be at the head of said Acting Officer list and shall be based on the
individuals score attained on the Captain’s test.
15.3 An Acting Officer eligibility list shall be valid for a period of one (1) year with a
possible six (6) month extension as set forth by the City’s Civil Service guidelines
and procedures.
ARTICLE 16 INCENTIVE PAY
16.1 Employees holding an EMT–Intravenous Therapy Technician certification shall
be entitled to an additional two percent (2%) of the individual’s base rate per
month compensation as a uniformed full-time Firefighter.
16.2 Fire Mechanic Incentive – An Employee assigned and performing the job
responsibilities of a Fire Mechanic shall be entitled to an additional 3% of the
individual's base rate of pay as a full-time uniformed Firefighter.
16.3 Notwithstanding any other provision of this Agreement, incentive pay discussed
in Sections 16.1 through 16.3 of this Agreement and/or any future classifications
or disciplines eligible for incentive pay shall be based on an individual’s base rate
of pay as a full-time uniformed firefighter. An individual can receive incentive
pay for each individual classification and/or discipline as long as they retain
active, certified status. In the event a paramedic is promoted to an officer rank, the
impact shall be negotiated to determine the incentive pay that shall be given to
said assignment.
16.4 Educational Incentive
16.4.1 Employees covered by this Agreement with an Associates of Arts or
Science degree in Fire Science and/or Administration or an allied field
subject to the approval of the Fire Chief or designee shall receive an
additional two (2.0%) of the individual’s base rate of pay.
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16.4.2 Employees covered by this Agreement with an Bachelor of Arts or
Science degree in Fire Science and/or Administration or an allied field
subject to the approval of the Fire Chief or designee shall receive an
additional four (4.0%) of the individual’s base rate of pay.
16.4.3 Employees covered by this Agreement with an Master of Arts or Science
degree in Fire Science and/or Administration or an allied field subject to
the approval of the Fire Chief or designee shall receive an additional six
(6.0%) of the individual’s base rate of pay.
ARTICLE 17 LONGEVITY PAY
17.1 Longevity pay shall be administered, using the following scale, and is to be added
to the employee’s base monthly salary after five (5) years of accumulated full-
time continuous service with the City at the following rate:
After five (5) years - 1%
After ten (10) years – 2%
After fifteen (15) years – 3%
17.2 Longevity shall be calculated from the employee’s base monthly salary, not
including any incentive pay for education or specialties.
17.3 Longevity pay adjustments shall become effective the first of the month,
coincident with or next following the employee’s anniversary date of
employment.
ARTICLE 18 CALLBACK PAY / OVERTIME
18.1 An employee who is called back to work after having completed his/her normal
shift shall receive his/her standard overtime rate of pay, subject to one (1) hour
minimum. Time shall be accumulated in half-hour increments.
18.2 Department training or meetings required off-duty shall be compensated at their
overtime rate of pay, subject to a one (1) hour minimum. Time shall be
accumulated in half-hour increments.
18.3 All accumulated overtime hours will be paid as overtime at the appropriate rate of
pay.
ARTICLE 19 SHIFT VACANCIES
19.1 A shift vacancy is one that occurs as a result of such situations as death,
resignation, removal, reassignment, transfer, promotion, permanent disability or a
modification in staffing patterns.
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19.2 Shift vacancies or other positions offered shall be filled by the Fire Chief or
designee based on individual training, experience and demonstrated capability
with consideration of seniority. In the event of a Paramedic shift vacancy
requiring special qualifications above the duties of a Firefighter/EMT, the
Employer’s shift vacancy posting shall list such special required qualifications.
19.3 Posting of shift vacancies shall be in each Fire Station for a period of thirty (30)
calendar days. Any employee desiring to bid for the shift vacancy shall submit
his/her request in writing to the Fire Chief or designee prior to the end of the
posting period.
ARTICLE 20 HOLIDAYS
20.1 The City and the Union agree to recognize 12 designated holidays each year.
Holiday Date Observed
New Year’s Day January 1st
Martin Luther King Jr. Day 3rd Monday of January
President’s Day 3rd Monday of February
Memorial Day Last Monday of May
Independence Day July 4th
Labor Day 1st Monday of September
Veteran’s Day November 11th
Thanksgiving Day 4th Thursday of November
Day after Thanksgiving Day 4th Friday of November
Christmas Day December 25th
2 floating holidays Employee’s choice, with approval of
Chief or designee
20.2 New employees shall qualify for paid holidays observed following date of hire.
New employees shall be eligible to observe the floating holidays, based on a
minimum of four (4) months’ continuous service with the Department.
20.3 Twenty-four (24) hour shift and twelve (12) hour shift employees whose normal
work schedule includes work on a City designated holiday (19.1 above), shall
earn holiday compensation pay at the rate of ten (10) hours per completed month
of continuous service in lieu of observing holidays. Payment for holidays shall be
made once per year on the first regular payday in October. Payment shall be
prorated for employees hired since the preceding January 1st.
20.4 The employee shall receive their straight-time rate of pay for holidays not
worked.
20.5 When personnel are required to work on New Year’s Day, Memorial Day, Labor
Day, Thanksgiving Day, the day after Thanksgiving and Christmas Day as
specified in Section 19.1 above, the responsibilities of that day will be restricted
to emergency responses, apparatus checks, and immediate Fire Department needs.
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ARTICLE 21 VACATION LEAVE
21.1 All full-time employees scheduled to work eight (8), ten (10), or twelve (12) hour
work shifts shall earn vacation allowances and shall be eligible for paid vacation
time as follows:
Completed Months of
Continuous Employment Monthly Accrual Yearly Accrual
Up to 12 months 8 hours 96 hours
13 – 24 months 10 hours 120 hours
25-36 months 12 hours 144 hours
37-48 months 14 hours 168 hours
49 months to 120 months 16 hours 192 hours
121 months and up
18 hours 216 hours
20.1 All full-time twenty-four (24) hour employees shall earn vacation allowances and
shall be eligible for paid vacation time as follows:
Completed Months of
Continuous Employment Monthly Accrual Yearly Accrual
Up to 12 months 8 hours 96 hours
13 – 60 months 12 hours 144 hours
61 – 120 months 16 hours 192 hours
121 months and up 20 hours 240 hours
21.2 New employees shall accrue vacation benefits from date of employment for use
following six (6) calendar months of continuous employment.
21.3 A sign-up schedule will be provided annually to allow employees to sign up
between November 1st and November 30thfor vacation and Kelly Days in the
coming year , coordinated by the Fire Chief or designee. Sign-ups will be subject
to the following:
21.3.1 Sign-ups will be completed on a seniority basis, and all vacation/Kelly
time will be scheduled in twenty-four (24) hour increments. Eligible
employees will be allowed to sign up for a maximum of ninety-six (96)
hours of vacation in each round of vacation selection. After all personnel
have signed up for their initial vacation selection, the sign up process will
repeat on a seniority basis for up to ninety-six (96) additional vacation
hours. Following the second round of vacation selection, there will be
four (4) rounds of Kelly time selection (ninety-six (96) hours in each of
the first three rounds; seventy-two (72) hours in the fourth round).
Following the final round of Kelly time selection, there will be additional
rounds of vacation selection until no further requests remain.
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21.3.2 Each employee must schedule at least (1) day off in each twenty-four (24)
day FLSA period.
21.3.3 No more than two (2) 24-hour employees (A, B or C shift) in operations
may schedule vacation/Kelly Days on the same shift unless authorized by
the Fire Chief or designee. Vacation and Kelly days may not be selected
in any combination that would require pre-planned overtime to maintain
the following staffing per shift: two (2) Officers, one of whom must be a
regular officer; two (2) Paramedics; and one (1) IV Tech; provided that
pre-planned overtime will be permitted on no more than seven (7) days per
shift per year.
21.3.4 Vacation/Kelly Day schedules are subject to final approval by the Fire
Chief or designee. The work schedule for the following year shall be
published by December 15, or seven (7) days following submittal of
selections meeting the requirements in this Agreement, whichever is later.
21.3.5 After November 30th cancellation of days off or changes to prior requests
shall be submitted to the Fire Chief or his/her designee not less than
thirteen (13) calendar days in advance, unless approved by Employer.
Employer will approve requests made less than thirteen (13) days in
advance if the request does not involve overtime expense and the request
is otherwise reasonable.
21.3.6 Following publication of the work schedule for the coming year,
additional vacation/Kelly time will be scheduled on a first-come, first-
served basis.
21.4 Employees may accumulate up to four hundred eighty (480) hours of vacation
time in each year of this Agreement. The maximum allowable accumulation of
unused vacation time to be carried over from the last day of the last Kelly cycle in
any given year to the first Kelly cycle of the following year is three hundred (300)
hours. Any vacation earned which exceeds the maximum accumulation allowable
shall be scheduled by the Employer and the employee, subject to the operating
efficiency of the Department as determined by the Fire Chief or designee.
21.5 The maximum amount of unused vacation time to be paid to the employee upon
separation from the City will be two hundred sixty (260) hours for employees
hired on or before December 31, 2013, and two hundred forty (240) hours for
employees hired on or after January 1, 2014.
ARTICLE 22 SICK LEAVE
22.1 All employees covered by this Agreement shall accrue sick leave at a rate of eight
(8) hours per month for all eight (8) and ten (10) hour shift personnel. All twelve
(12) and twenty-four (24) hour shift personnel shall accrue sick leave at the rate of
twelve (12) hours per month. Effective at the time of their hiring date, each new
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employee hired by the Department shall receive an initial sick leave bank equal to
Seventy-Two (72) hours of accrued time (“New Employee Sick Leave”). Any
New Employee Sick Leave used by a new employee during that employee’s first
(1st) six (6) calendar months of employment will be drawn against that
employee’s regular sick leave accrual under the terms of this Section 21.1 such
that if a new employee does not take any New Employee Sick Leave during that
new employee’s first (1st) six (6) months, at the end of that six (6) month period,
the new employee will have Seventy-Two (72) hours of accrued sick leave.
22.2 When an employee switches shifts (i.e. eight (8) hours to twenty-four (24) hours),
his/her sick leave accrual shall be adjusted to meet the new schedule, either
increased or decreased.
22.3 Employees may accumulate up to one thousand four hundred forty (1440) hours
of sick leave.
22.4 The maximum amount of unused sick leave to be paid to the employee upon
separation from the City will be three hundred fifty (350) hours for employees
hired on or before December 31, 2013, and three hundred thirty (330) hours for
employees hired on or after January 1, 2014. Employees that are terminated for
cause shall not be entitled to the above outlined sick leave cash out.
22.5 Definition of coverage, eligibility, reporting and use, and termination/ retirement,
shall be in accordance with the most current adopted city policies and procedures
22.6 LEOFF Buyback – LEOFF employees will be allowed to buy back sick leave
with their Industrial Insurance check and their Salary Protection Insurance check.
ARTICLE 23 SHARED LEAVE
23.1 Shared leave shall be in accordance with the most current adopted city policies
and procedures.
23.2 Each employee eligible to contribute to the City’s shared leave plan will
contribute eight (8) hours of leave to the plan each January.
ARTICLE 24 MILITARY LEAVE
Military leave shall be in accordance with the most current adopted City policies and
procedures.
ARTICLE 25 FAMILY & MEDICAL LEAVE
Family and Medical leaves shall be in accordance with the most current adopted City
policies and procedures.
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ARTICLE 26 JURY DUTY
The City of Arlington encourages employees who are selected for jury duty to attend.
Paid time off for jury duty is in accordance with the most current adopted City policies
and procedures.
ARTICLE 27 BEREAVEMENT LEAVE
27.1 Full-time employees assigned to a twenty-four (24) hour work schedule shall be
eligible to initially receive up to twenty-four (24) scheduled work hours as
bereavement leave due to a death in the immediate family. Consideration shall be
given to granting up to an additional twenty-four (24) scheduled work hours
depending on the location, date and time of the funeral, internment or memorial
service. Actual time approved by the Fire Chief or designee shall be consistent
with the intent of the most current adopted city policies and procedures..
27.2 In the event of extenuating circumstances and at the discretion of the Fire Chief or
designee, approved time in addition to that provided by Section 26.1 above may
be used as accrued vacation, leave without pay, or sick leave if warranted.
27.3 Bereavement Leave for full-time employees assigned to other than twenty-four
(24) hour work shifts shall be in accordance with the most current adopted city
policies and procedures.
ARTICLE 28 PERSONAL LEAVES OF ABSENCE
28.1 Authorized personal leaves of absence shall be in accordance with the most
current adopted city policies and procedures.
28.2 During the period that any employee is on an authorized leave of absence with or
without pay, seniority shall accrue.
ARTICLE 29 PROBATION & EVALUATION PERIODS
29.1 Probation Period – New employees shall be subject to a twelve (12) month
probation period following successful completion of recruit training as
determined by the Fire Chief or designee. During this period, such employee shall
be evaluated by the Employer and may be terminated at the sole discretion of the
Employer.
29.2 Promoted employees shall be subject to a twelve (12) month evaluation period. In
the event a promoted employee does not successfully complete said evaluation
period, the employee shall be returned to his/her former rank and appropriate rate
of pay.
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29.3 Employees serving an initial evaluation period shall receive written performance
appraisals on or about every ninety (90) days during said period(s) by the Fire
Chief or designee.
29.4 Employees with the same date of hire shall be assigned a seniority order, based on
the individual’s total score from the entire testing process of the employer (i.e.:
Civil Service and the Department). The higher the total score, the higher the
seniority ranking.
ARTICLE 30 SENIORITY
30.1 A seniority list shall be maintained by the Employer and shall be brought up to
date prior to January 31st of each year. This list shall be forwarded to the
Secretary of the Union. The list shall show date of hire and date promoted, if any.
30.2 An employee’s seniority shall be defined as that period from the employee’s most
recent first day of uniformed full-time compensated work with the Arlington Fire
Department.
ARTICLE 31 LEGAL PROTECTION
The City shall hold personally harmless any employee from any action, claim or
proceeding arising out of the performance, purported performance, or failure of
performance, in good faith of duties for, or employment with the City and hold these
employees harmless from any expenses connected with the defense, settlement, or
monetary judgments from such actions, claims or proceedings.
ARTICLE 32 PREVAILING RIGHTS
32.1 The Employer and the Union recognize the City maintains a City Policy and
Procedure Manual. In the event this Agreement does not address particular issues
and topics that are addressed in the Manual, the most current edition of the City
Policy and Procedure Manual shall apply.
32.2 New policies and procedures developed during the term of this Agreement shall
be reviewed with the Union prior to implementation.
ARTICLE 33 LIGHT DUTY
33.1 An employee who is injured and is subsequently unable to perform his/her normal
duties may be assigned to light duty upon examination of the employee’s own
physician. The City reserves the right, at its own expense, to have the employee
examined by a City-appointed physician. An employee’s salary while on light
duty shall be at the employee’s straight-time rate of pay.
33.2 Light duty may be considered if there is work suitable for such position.
Assigned light duty positions shall not affect the minimum staffing requirements
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of the Department, as determined by the Fire Chief or designee. The employee
shall be assigned non-combat duty in such areas as Fire Prevention, Training, or
as determined by the Chief or designee. Light duty work shall be performed on a
five (5) day, eight (8) hours per day schedule, during normal administrative hours.
Other work schedules may be arranged by mutual agreement between the
employee and the Fire Chief or designee.
33.3 The position of light duty shall not exceed a period of four (4) weeks and may be
extended by an additional four (4) weeks at the discretion of the Fire Chief or
designee. If the illness or injury requires additional time off, the Fire Chief or
designee may extend the light duty period, if there are sufficient and compatible
non-combat duties to be performed. Additional light duty will be assigned in
thirty (30) day increments with evaluation at the end of each thirty (30) day period
by the Fire Chief or designee. A light duty assignment may last, but may not
exceed six (6) months total. If the employee cannot return to their normal duties
after this six (6) month period, the employee must use accumulated sick leave,
unpaid leave or disability.
ARTICLE 34 SHIFT BIDS
34.1 The shift selection process shall be administered by the Fire Chief or designee and
be completed on or before November 1. The shift selection shall be effective on
the first Kelly cycle after January 2nd of each year.
34.2 Individual shift selection shall be for a minimum of three (3) years and a
maximum of five (5) years. The Employer retains the right to move employees for
operational or justified reasons. The employee retains the right to request a
transfer from a shift for justified reasons. If a change is requested by either party,
the Employer and the Union shall bargain the effects and legitimacy of the request
prior to a change occurring unless it is deemed an emergency situation by the
Employer. The final decision shall be rendered by the Employer.
34.3 Probationary positions may be assigned by the Employer prior to shift selections.
Duration for probationary assigned periods shall be for the length of the current
shift selection cycle.
34.4 The Employer and the Local shall agree prior to the end of the three (3) year cycle
whether to extend the shift selection cycle to a maximum of five (5) years.
34.5 The Union will provide shift selection forms upon an employee’s request. Upon
completion of all the forms, the Union shall fill all positions on a seniority based
process and return a copy of all forms to the Fire Chief or designee within thirty
(30) calendar days.
34.6 The Fire Chief or designee shall have the authority to implement minimum
standards for positions within the department.
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ARTICLE 35 PERSONNEL REDUCTION
35.1 The Employer shall notify the Union of the need to reduce the number of
employees who are on the payroll within the bargaining unit at least sixty (60)
calendar days before the effective date of layoff. Such notice shall be given in
writing, addressed to the Union and hand delivered to a Union officer or by
registered U.S. mail. The notice shall disclose the number of positions affected
and the rank of each person affected. Immediately after issuing the notice, the
Employer shall give the Union a reasonable period of time, of no less than ten
(10) calendar days within which it will meet and confer with the Union to discuss
such action. The Employer shall respond to any proposals which the Union may
make in response to the subject of notice.
35.2 Each employee who is to be reduced in rank or laid off as a consequence of a
reduction in force shall be given written notice, at least thirty (30) calendar days
before such action is to occur, of the date, purpose and nature of the action that is
to be taken with regard to him. The notice shall also state the reason for the action
and any rights the employee may have under the City Policy and Procedures
Manual, Civil Service rules, or this Agreement with regard to his/her
employment. A copy of the notice shall be timely delivered to the Union within
the thirty (30) calendar day notification period.
35.3 All reductions in force shall be established by seniority in the Department within
the thirty (30) calendar day notification period. Seniority in rank shall be
established from the date that the employee was promoted into the rank which he
or she currently occupies.
35.4 In the event of a tie in seniority, the tie shall be broken by the final score on the
employment or promotional examination.
35.5 In the event a reduction in force is necessary, the reduction shall proceed in the
following order:
a. Employees shall be laid off in reverse order of the Departmental seniority
list; the least senior employee in the Department shall be laid off first
without regard to rank or classification.
b. In the event a reduction in force results in the need for a redistribution of
employees to a lesser rank, such reduction in rank shall be accomplished
by reducing in rank those employees with the least tenure in the affected
rank counting from the employee’s date of promotion.
c. An employee who is laid off shall be paid for all accrued leave time,
including vacation and holiday pay, based on the employee’s straight-time
rate of pay as of the date of separation.
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All employees who are reduced in rank or laid off shall not suffer any loss in
benefits or entitlement accrued prior to the date of the action, e.g. holiday,
vacation, personal leave, pension, and overtime, earned, accumulated, and unused
at the time of reduction in rank or layoff.
35.6 If an employee is reduced in rank due to redistribution in force, that employee
shall receive the maximum salary for the lower grade.
35.7 The Civil Service Commission and City Human Resource Department shall
maintain a list, known as a “rehire list,” of all persons who are reduced in rank or
laid off. In the event that vacancies occur within the Department while persons
remain on the rehire list, the order of the recall shall be determined by reference to
the rehire list. The rehire list(s) shall remain in effect for thirty-six (36) calendar
months after the date of a layoff, unless extended by the Civil Service
Commission and shall be used to offer employment that may become available by
seniority to all persons who have been reduced or laid off, before any employees
are promoted from one rank to another or any persons hired or transferred (from
another City department) to become new employees of the Fire Department. No
person may be hired, nor may any person be transferred from another City
department, while any person in that rank remains in a reduced rank or on the
rehire list. Any persons who are returned to their former positions shall be placed
in the pay grade of their former rank, restored to the straight-time rate of pay that
they would have received had they not been reduced in rank or placed on a rehire
list. Employees shall receive no service credit for any period of time while on
layoff status.
35.8 Notice of recall to the employee’s former position shall be given to the employee
in writing at his/her last known mailing address, it being the employee’s
obligation to notify the City Human Resource Department of any change in
address while on layoff status. The notice shall be by certified mail, return receipt
requested. The employee shall be given thirty (30) calendar days to accept an
offer of the reinstatement, in which case written acceptance shall be sufficient if
filed in any form with the Human Resource Department.
35.9 Any employee who fails to return to work upon official notice of rehire or recall
by the City shall be terminated.
35.10 If an employee is on layoff status, seniority shall not accrue. Upon returning to
work after such leave or layoff, the employee shall be granted the level of
seniority previously accrued.
ARTICLE 36 PHYSICAL FITNESS
36.1 The City and the Union recognize the physical and mental health of bargaining
unit employees is of vital importance in fulfilling the responsibilities of the job of
Firefighter. The City and the Fire Department consider physical fitness as a high
priority and as such workout periods shall be accommodated in the daily activity
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schedule. The physical fitness program is a mandatory, non-punitive program. All
employees are expected to utilize the workout time allotted to them daily.
36.2 Physical fitness activities may be scheduled at any time during a shift provided
said physical fitness periods shall not interfere with scheduled shift work such as
drills, training, inspections, or emergency responses. Scheduled time for physical
fitness shall normally be between the hours of 0800 and 1700. All shift employees
shall be allowed ninety (90) minutes per shift for physical fitness activities.
ARTICLE 37 SHIFT EXCHANGES
37.1 Employees shall have the right to exchange shifts when the exchange does not
interfere with the operation of the Fire Department. Shift exchanges shall result in
no additional cost to the City nor interfere with the operation of the Department as
determined by the Fire Chief or designee.
37.2 All shift exchanges shall be submitted in writing and approved forty-eight (48)
hours in advance by the affected supervisor (including paybacks) unless deemed
an emergency nature by the Department. Supervisors shall have the right to
approve/disapprove all shift trades.
37.3 It is understood by both parties that “no additional cost” means that the City will
not cover any cost to maintain minimum staffing.
37.4 It is further understood that a shift exchange is a private contract entered into
between two independent parties and that the individual requesting the shift
exchange is responsible to make certain that his/her shift will be covered. It is the
responsibility of the original person scheduled to work and who is requesting the
shift exchange is obligated to find a third party to work the shift if the party
agreeing to the shift exchange is not able to report for duty.
37.5 If a third party cannot be found, then the person originating the request for the
shift exchange must report for their scheduled shift, or agree to being docked the
full cost of any overtime needed to fill the vacancy.
37.6 In the event that the originator of the shift exchange request is “out-of-town” or
otherwise cannot be reached, the shift will be filled using overtime. Under this
scenario, the originator of the shift exchange will have two opportunities to “pay
back” the cost of overtime to the City as follows:
37.6.1 Be “docked” the full overtime cost; or,
37.6.2 Agree to work a shift equal to the time lost as scheduled by the
Department. The scheduled overtime will not, unless there is no other
alternative, be a “mandatory” overtime situation.
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ARTICLE 38 PROMOTIONS
38.1 Promotional testing shall be in accordance with the City’s Civil Service
guidelines and procedures as set forth in this Agreement.
38.2 The City and Union agree that the specific qualifications for all promotional
positions, such as education, experience and time-in-grade shall be discussed and
agreed upon by the Department and Union through the regular Labor-
Management meeting process.
38.3 The City and the Union agree that announcements of promotional exams shall be
posted at all City Fire Stations in accordance with the timeframes discussed and
agreed upon by the Department and Union through the regular Labor-
Management meeting process.
38.4 Relevant study materials shall be made available to interested employees at the
time of posting.
38.5 In the event that no promotional candidate passes the promotional examination,
the City and Union agree to meet and confer about an alternative process.
ARTICLE 39 PARAMEDIC VESTING
39.1 The City recognizes that from time to time employees serving as Firefighter /
Paramedic may request to be reassigned permanently to the position of Firefighter
/ EMT. The employee must have served in the position of Firefighter/Paramedic
with the City for a minimum of five (5) years. This request for permanent
reassignment is differentiated from periodic requests for temporary assignments
to an engine company as a relief from Paramedic duties.
39.2 The request will be handled on a first-come, first-serve basis in conjunction with
the needs of the City. The request shall be provided to the Fire Chief or designee a
minimum of six (6) months prior to the requested date of reassignment. The City
will notify the employee requesting transfer within twenty (20) calendar days
whether the request has been approved, and of an anticipated date for the return to
Firefighter / EMT.
39.3 Assignment to engine company duties is dependent on the existence of an open
position in the Firefighter / EMT ranks. An open position shall be defined as a
vacant authorized Firefighter / EMT position which may occur as a result of
routine turnover, addition of positions, or promotions.
39.4 Employees serving as Firefighter / Paramedic that are reassigned as a Firefighter/
EMT following the process detailed in Sections 38.1 through 38.3 will be entitled
to a portion of their Paramedic incentive pay in the following manner:
5 years as Paramedic 50% of ALS premium
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6 years as Paramedic 60% of ALS premium
7 years as Paramedic 70% of ALS premium
8 years as Paramedic 80% of ALS premium
9 years as Paramedic 90% of ALS premium
10 years + as Paramedic 100% of ALS premium
39.5 The newly assigned Firefighter/EMT shall have his/her pay, including COLAs
and step increases, frozen until the Firefighter First Class pay meets the pay
received by the newly assigned Firefighter/EMT.
ARTICLE 40 MEDICAL CERTIFICATION AND TRAINING
40.1 This Article refers to all initial certification and continuing education, required by
the Employer, Snohomish County, and the State of Washington to maintain all
levels of Emergency Medical Technician (“EMT”) and Paramedic certification.
40.2 All books, tuition, instructor fees, and material required for certification shall be
provided by the Employer. Reimbursement for all related expenses will be
according to the most current edition of the City Policy and Procedure manual.
40.3 The Employer shall provide all initial EMT training on-duty or on an overtime
basis. Any employee allowed to advance their skills to the next level shall receive
their training on-duty or an overtime basis.
40.4 The Employer shall make available to all employees either on-duty or on an
overtime basis all training required to maintain their certification.
40.5 Employees having difficulty with the EMT or Paramedic certification shall be
given counseling, additional on-duty study time, and any reasonable support
needed by the employee to certify or maintain certification.
40.6 Employees who fail to certify or re-certify twice (2 times) consecutively shall
retake the course and examination on their own time and expense
40.7 Any employee failing to certify after a third (3rd) failure to certify or re-certify
completing the above procedure may be demoted or terminated by the Fire Chief
or designee.
ARTICLE 41 UNIFORMS AND CLOTHING
41.1 The Employer shall provide each new regular full-time employee covered by this
Agreement with the following list of uniform / clothing items, including
appropriate insignias (i.e. patches, badge, silk-screening, etc.):
3 work pants
6 tee shirts
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2 Class B work shirts
2 sweatshirts
1 belt
1 pair work boots
1 winter weight jacket
1 baseball style cap
1 Class A Dress Uniform.
Helmet with eye protection
Bunker jacket
Bunker pants
Protective hood
Suspenders
Gloves
Bunker Boots
Flashlight
41.2 The Department shall utilize a uniform quartermaster system administered by the
Fire Chief or designee that allows for the approval and distribution of initial and
replacement uniforms. A chain of command order system shall be established and
replacement gear issued when worn out gear has been turned in. Effective
January 1, 2014, newly issued and replacement bunker boots will be made of
leather.
41.3 All initial issue and replacement uniform items and vendor(s) shall be approved in
advance by the Fire Chief or designee.
41.4 All uniforms and equipment issued by the Employer to each employee shall
remain the property of the Employer.
41.5 The Fire Chief or designee shall determine the appropriate uniform for each work
shift.
ARTICLE 42 TRAINING CAPTAIN
42.1 The Training Captain position shall report directly to the Fire Chief or designee.
His/her primary responsibility shall be coordinating department training and
serving as the Department’s Health & Safety Officer. He/she shall have other
training and safety responsibilities as directed by the Chief.
42.2 If during the term of this agreement the City establishes a training captain position
(other than the current arrangement) the Union agrees to negotiate the impacts of
the position with the City.
42.3 The position of Training Captain shall be assigned by seniority except as set forth
below. On each occasion when the Training Captain position becomes available,
the highest senior current Captain who has not yet held the position of Training
Captain shall be given the first opportunity to fill the position. On the first
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occasion when a Captain is provided with the opportunity to fill the Training
Captain position, the Captain may, on that occasion only, defer that opportunity.
If unfilled because of deferral, then the position shall be filled by the next highest
senior current Captain. If a Captain has previously exercised his or her right of
deferral as provided for herein, then that Captain must fill the Training Captain
position on the next occasion when the position becomes available.
Notwithstanding the above language, a qualified Captain may serve as Training
Captain if that employee volunteers for that duty. If volunteering, the Captain
must serve in the position for two years. If, after that voluntary two year cycle, no
other Captain volunteers to fill the position, the seniority selection process shall
apply.
42.4 The duration of the position shall be for a minimum of two (2) years and may be
extended for an additional one (1) year if mutually agreed upon by the Chief and
Training Captain. Once a person has finished the allotted time he/she shall not be
eligible again until all remaining Captains have rotated through.
ARTICLE 43 DEFERRED COMPENSATION PROGRAM
43.1 Regular full-time employees shall be eligible to participate in a matching program
known as the state of Washington Deferred Compensation Program, herein after
known as the “Program”, as an alternative to participating in Social Security.
Enrollment and continued participation shall be in accordance with the rules and
regulations of the Program and the City-wide administrative requirements of the
Employer. Conditions for participation in the Program shall include, but not be
limited to the following:
43.2 The Program shall be a dollar for dollar match between employee and Employer,
with the Employer share not to exceed the amount that it would ordinarily
contribute to the Social Security program.
43.3 Contribution amounts shall be adjusted as changes in the Social Security rate
occur.
43.4 The amount of the Employer’s contribution shall be based on the employee’s
gross base wage. The gross base wage includes base salary and educational
incentives.
43.5 Employees may choose to increase their portion of the contribution should they
choose to defer the maximum allowable. However, the total amount deferred
monthly may not exceed the maximum allowable per the Program regulations.
43.6 It is the responsibility of the employee to contact the State of Washington
Deferred Compensation Program in order to initiate changes to their monthly-
deferred amounts. Sufficient time must also be given to the City’s Finance
Department for processing.
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ARTICLE 44 LATERAL TRANSFER EMPLOYEES
44.1 Lateral transfer employees must meet the minimum medical and health
requirements of LEOFF Retirement System as administered by the State of
Washington Department of Retirement Systems.At the time of application, the
lateral transfer will be a full-time paid member of a Fire Department with at least
three (3) years of continuous employment. The transfer applicant will possess all
certifications, training, and license(s) as required by Washington State and the
City of Arlington, as outlined by the Civil Service Commission.
44.3 The lateral transfer applicant must be a member of good standing with the
International Association of Fire Fighters. The applicant shall have no
disciplinary action pending or in place with his/her current employer.
44.4 The lateral transfer applicant shall enter the payscale at the level of a Firefighter
Second Class. Longevity pay will apply to the time served with the City of
Arlington Fire Department.
44.5 Every three (3) years of service the applicant has served with their current
employer will count as one (1) year of service with the City for the purpose of
determining vacation and sick leave accrual. A sick leave bank of seventy-two
(72) hours will be established at the time of hire.
44.6 Any other concerns shall be discussed and agreed upon through the regular Labor-
Management process.
Executed this __________ day of ___________________, 2014.
Arlington Firefighters Organization City of Arlington
Local #3728, IAFF
By:_________________________ By:___________________________
President Mayor
Date:________________________ Date:_________________________
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APPENDIX “A”
to the
AGREEMENT
By and between
The City of Arlington
and
Arlington Firefighters Organization,
Local #3728, IAFF
January 1, 2014 through December 31, 2016
This Appendix “A” is supplemental to the Agreement by and between the City of
Arlington, Washington, hereinafter referred to as the Employer, and the Arlington
Firefighters Organization, Local #3728, IAFF, hereinafter referred to as the Union.
A.1 Effective January 1, 2014, the following rates of pay for employees covered by
the Agreement shall be as follows:
Classification
Completed Months of
Continuous Employment
Salary per
Month
Firefighter
Probationary Firefighter (75%) 0 - 6 months $ 4,701
Firefighter 5th Class (80%) 7 - 12 months $ 5,015
Firefighter 4th Class (85%) 13 - 24 months $ 5,329
Firefighter 3rd Class (90%) 25 - 36 months $ 5,642
Firefighter 2nd Class (95%) 37 - 48 months $ 5,956
Firefighter 1st Class (100%) 49 + months $ 6,269
Paramedic (12% above Firefighter)
Probationary Firefighter/Paramedic (87%) 0 - 6 months $ 5,265
Firefighter/Paramedic 5th Class (92%) 7 - 12 months $ 5,617
Firefighter/Paramedic 4th Class (97%) 13 - 24 months $ 5,968
Firefighter/Paramedic 3rd Class (102%) 25 - 36 months $ 6,319
Firefighter/Paramedic 2nd Class (107%) 37 - 48 months $ 6,671
Firefighter/Paramedic 1st Class (112%) 49 + months $ 7,021
Captain
Captain (120%) $ 7,523
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A.2 Wage Increases – Any wage increase shall become effective the first of the
month, coincident with or next following the employee’s anniversary date of
employment.
A.3 In the event an employee is on disciplinary status becomes otherwise eligible for a
wage increase in accordance with Sections A.2 such increases shall not be granted
until the employee has been removed from such status by the Fire Chief or
designee. There shall be no retroactive pay adjustment under such circumstances.
A.4 Nothing herein shall prohibit the Employer from paying wage rates above those
contained in this Appendix A.
Executed this __________ day of ___________________, 2014.
Arlington Firefighters Organization City of Arlington
Local No. 3728, IAFF
By:_________________________ By:___________________________
President Mayor
Date:________________________ Date:_________________________
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