HomeMy WebLinkAboutR-2001-020 Ahtanum Trunk Line / Apple Tree Sewer Revenue BondsCITY OF YAKIMA, WASHINGTON
RESOLUTION NO. R-2001-20
A RESOLUTION fixing the principal amount of the City's junior lien
water and sewer revenue bonds, 2001 and ratifying certain acts and
proceedings.
WHEREAS, the City of Yakima, Washington (the "City"), by Ordinance No. 2000-35
passed September 5, 2000 (the "Bond Ordinance"), authorized the issuance of the City's Water
and Sewer Junior Lien Revenue Bonds, 2001, in an amount not to exceed $2,500,000 (the
"Bonds"); and
WHEREAS, following receipt of bids for construction of the Project, the final principal
amount of the Bonds was to be determined by subsequent resolution of the Council;
NOW, THEREFORE, BE IT RESOLVED by the City of Yakima, Washington, as
follows:
Section 1. Definitions. Capitalized terms used herein and not otherwise defined shall
have the same meanings, respectively, in this resolution as such terms are given in Section 1.1 of
the Bond Ordinance.
Section 2. Principal Amount of Bonds; Issuance. The Council hereby finds and
determines that the Bonds shall be issued in the aggregate principal amount of $600,000 and
pursuant to the terms set forth in Section 3.1 of the Bond Ordinance.
The Bonds shall be issued and delivered to the Apple Tree Partnership, as purchaser,
upon payment of the purchase price specified in the Agreement, plus accrued interest from their
date to the date of their delivery.
Section 3. Execution and Delivery of the Bonds. The proper officers of the Council
and the Director of Finance and Budget of the City are hereby authorized and directed to do all
things necessary or proper for the printing, execution and delivery of the Bonds to the purchaser
in accordance with the terns of the Agreement and the Bond Ordinance, as well as this
resolution, and for the proper application and use of the proceeds of such sale.
Section 4. Ratification of Past Acts. All actions and proceedings heretofore taken by
the officers, agents, attorneys and employees of the City in connection with the issuance and sale
of the Bonds are hereby ratified, approved and confirmed.
Section 5. Effective Date. This resolution shall be in effect from and after its
adoption in accordance with law.
ADOPTED at a regular meeting of the City Council of the City of Yakima, Washington,
this 6th day of February, 2001.
ATTEST:
City Clerk
APPROVED AS TO FORM:
ite—cfe12-14
City Attorney
-2-
CITY OF YAKIMA, WASHINGTON
By ,44/.
Mayor
P\DOT\DOT13K 01/02/06
CERTIFICATE
I, the undersigned, Clerk of the City of Yakima, Washington (the "City"), and keeper of
the records of the City Council (the "Council"), DO HEREBY CERTIFY:
1. That the attached Resolution No. R-2001-20 is a true and correct copy of a
resolution of the City Council, as finally adopted at a regular meeting of the Council held on the
6th day of February, 2001, and duly recorded in my office.
2. That said meeting was duly convened and held in all respects in accordance with
law, and to the extent required by law, due and proper notice of such meeting was given; that a
legal quorum was present throughout the meeting and a legally sufficient number of members of
the Council voted in the proper manner for the passage of said Resolution, that all other
requirements and proceedings incident to the proper adoption of said Resolution have been fully
fulfilled, carried out and otherwise observed; and that I am authorized to execute this certificate.
IN WITNESS WHEREOF, I have hereunto set my hand this day of
,2
City Clerk
(SEAL)
K:\25739\80001\ZCF R211R
BUSINESS OF THE CITY COUNCIL
YAKIMA, WASHINGTON
AGENDA STATEMENT
Item No.
For Meeting Of 9/5/00
ITEM TITLE. Consideration of Legislation re. Ahtanum Trunk Line/Apple Tree Development
SUBMITTED BY:
Dick Zais, City Manager
Glenn Rice, ACM
Larry Peterson, City Legal
Doug Mayo, Wastewater Manager
CONTACT PERSON/TELEPHONE: Doug Mayo/575-6077
SUMMARY EXPLANATION:
The City of Yakima has reached a tentative agreement with the Apple Tree Partnership (AT) for planning,
design, and construction of a new sewer interceptor extension to be known as the Ahtanum Trunk Line. The
project is estimated to cost $2.5 million and will be financed by a combination of $325,000 public and $2,175,000
private cash contributions in the form of limited -obligation revenue bonds Apple Tree promises to buy.
(continued on next page)
Resolution 1 Ordinance 1 Other (Specify) Motions (2)
Contract 2 Mail to (name and address):
(1) Apple Tree Partnership 2550 Borton Rd Yakima, WA 98903
(2) HLA, Inc. 801 S. 39th Ave. Yakima, WA 98908
Funding Source Budgeted in Fu 6 asroject 1,821,
APPROVED FOR SUBMITTAL:
ity Manager
STAFF RECOMMENDATION:
Staff respectfully requests that the City Council:
A. Pass the proposed Ordinance Authorizing Issuance and Sale of a Utility Revenue Bonds. Please note:
Section 7.2 of the proposed Ordinance approves and authorizes execution of the Sewer Construction and
Bond Purchase Agreement. Consequently, there is no separate resolution for that action.
B. Adopt the proposed Resolution Authorizing Execution of Professional Services Agreement with Huibregtse,
Louman Associates, Inc. for Design Services
C. Pass a motion calling for City staff to prepare and submit documents required for the City to provide
wastewater service to the Ahtanum Sub -basin and seeking an amendment to Exhibit A of the Agreement for
Wastewater Treatment and Disposal Service (4 -Party Agreement) entered into February 2, 1976 for the
Sewer Service Area Boundary
D. Pass a motion to execute a separate Memorandum of Understanding pertaining to potential future service to
Apple Tree Property within the Coolidge and Washington Avenue Sub -basins
BOARD/COMMISSION RECOMMENDATION:
COUNCIL ACTION: A - Ordinance passed. ORDIN A NCE NO _ 2000-35
B. Resolution adopted. RESOLUTION NO. R-2000-106
C. Motion was approved.
D. Motion was approved.
Page 1
(continued from page 1)
In the future, following design, cost estimates, completion of environmental review under SEPA, and public
bidding, Council will be asked to take subsequent action authorizing construction and approving sale of a
Utility Revenue Bond Issue. The attached memorandum from staff provides a complete overview of the
agreement between the parties.
In the future, following design, cost estimates, completion of environmental review under SEPA, and public
bidding, Council will be asked to take subsequent action authorizing construction and approving sale of a
Utility Revenue Bond Issue. The attached memorandum from staff provides a complete overview of the
agreement between the parties.
Changes that were made since the August 15 agenda are as follows:
• Text clarified regarding Apple Tree's opportunity for reimbursement to reinforce limits on City's obligations
and to ensure this transaction does not impair City's opportunity to finance future projects
• Date of June 1,2041 set for end of City's obligations
• Other non -substantive housekeeping changes in text, particularly to more closely integrate the Ordinance
and the Agreement
• Memorandum of Understanding clarified regarding possible future Apple Tree service through Coolidge
and/or Washington line
• Slight modification of the map defining the Ahtanum Sub Basin
Page 2
Transmittal
August 11, 2000
To: Honorable Mayor, Members of City Council, City Manager
SUBMITTED BY.
Dick Zais, City Manager
Glenn Rice, ACM
Larry Peterson, City Legal
Doug Mayo, Wastewater Manager
AHTANUM TRUNK LINE PROJECT
AN AGREEMENT BETWEEN
THE CITY OF YAKIMA AND APPLE TREE PARTNERSHIP
TO BRING CITY SEWER SERVICE TO AHTANUM AND BEYOND.
The City of Yakima has reached a tentative agreement with the Apple Tree Partnership (AT) for
planning, design and construction of a new sewer interceptor extension to be known as the
Ahtanum Trunk Line The Agreement commits the City to a public works project to build a major
trunk line following the old YVT right of way along South 64th Avenue and Ahtanum Road out to
South 86th Avenue, and a 10" line along South 86th Avenue connecting the area north of
Ahtanum Road including the Apple Tree property to the trunk line.
The project is estimated to cost $2.5 million and will be financed by a combination of public and
private cash contributions and limited -obligation revenue bonds Apple Tree promises to buy.
Apple Tree and the City will directly contribute a combined total of $525,000 in cash. (City $325K;
AT $200K) The balance of Project Costs will be financed by Apple Tree's purchase of Revenue
Bonds that will be paid exclusively from sewer connection charges paid during a forty year period
by properties served by the new trunk line The specific amount financed by the Revenue Bonds
will be determined after engineering and design is completed, and the cost of construction is
determined by public bidding. A Resolution establishing the specific amount of the Revenue
Bonds will be presented to the City Council after the bids are opened.
In consideration of its cash contribution, and its purchase of the Limited Revenue Bonds, Apple
Tree will be entitled to waiver of the trunkage element of the City connection charges for up to 225
acres of its property.
The project will make City sewer service available to the Ahtanum area west of South 64th
Avenue. The new 2 mile trunk line will create opportunities for significant public health
improvements in the Ahtanum Sub -Basin, and will facilitate development of new housing and
other uses by Apple Tree and others.
This project will allow, for remediation and enhancement of the environmental conditions and
encourage economic development within the entire sub -basin along south 64th avenue and west
on Ahtanum Road to 86th Avenue.
The project will be designed to ultimately serve the entire sub -basin within the GMA boundary.
Service by Public Utilities is one of the basic tenets of GMA policy.
This project will lead to the ultimate Annexation of the entire subbasin. All AT and other
connected properties will become subject to annexation. If annexed, the 1999 value to the City,
of property tax, utility taxes, sales tax, and per capita. is over $200,000 per year or over
$8,000,000 over a 40 year period. This value will increase as development occurs and property
values increase.
August 11, 2000
One critical element of the total finance package is the waiver of the future element of the Base
Trunkage Charge of the Wastewater Connection Charge. Chapter 7 58.060 YMC allows the City
to waive the future element of the Base Trunk/Interceptor Charge under conditions such as this
project. The City allowed for this waiver as an incentive to developers to make the investments
necessary to provide for expansion of the City's existing trunkage system. Through developer
financed projects, the City hopes to encourage expansion thereby spurring economic growth
which in turn will speed up the City's return on previous and future City rate payer investment.
What the City receives:
1) A major sewer interceptor ($2.5 mill) which will serve the Southwest subbasin to Ahtanum (over
1,100 acres) with modest City cash obligation.
2) Capacity for future extension of this line to serve the area to Wiley City and beyond (additional
350 acres)
3) Wastewater Connection Charge (WCC) at Zone 3 rates, less Revenue Bond obligations, for all
new customers outside of AT development. (Present value over $4.8 mill)
4) Treatment element of WCC for all AT customers. (Present value $720,000)
5) Signed OUA's for all customers and all AT properties. All properties will become subject to
annexation. If annexed, the 1999 value to the City, of property tax, utility taxes, sales tax, and
per capita. is over $200,000 per year or over $8,000,000 over a 40 year period. This value will
increase as development occurs and property values increase.
What Apple Tree receives:
1) Public sewer service to their planned housing/commercial development.
2) Waiving of "future trunkage" portion of Wastewater Connection Charge for up to 225 acres of
AT development. (present value approximately $3,270,000)
3) Possibility of repayment of all or part of Revenue Bond (maximum present value $1,815,000).
Actual repayment dependent upon connections within the area served by this project, Paid at
$0.24 (adjusted for inflation) per square foot of newly connected acreage
City's obligations:
1) Cover bond issuance, agreement preparation, and any right-of-way costs. $160,000 has been
budgeted. $50,000 has been incurred to date.
2) Design and build project
3) Waive "future trunkage" portion of Wastewater Connection Charge for up to 225 acres of AT
development. (present value approximately $3,270,000)
4) Obligated portion of treatment, trunkage, and collection elements of WCC from Ahtanum Sub -
Basin connections only for bond debt repayment for 40 years. (Value dependent upon
connections, estimated present value $1,815,000) Paid at $0.24 (adjusted for inflation) per
square foot of newly connected acreage.
5) Contribute $325,000 cash toward project costs.
6) Provide Treatment and Interceptor capacity for new customers in the Ahtanum subbasin and
other typical obligations of ownership.
August 11, 2000
Staff Reccomendations:
Staff respectfully requests that the City Council:
A) Pass the proposed Ordinance Authorizing Issuance and Sale of a Utility Revenue Bonds.
Please note• Section 7.2 of the proposed Ordinance approves and authorizes execution of the
Sewer Construction and Bond Purchase Agreement. Consequently, there is no separate
resolution for that action.
B) Adopt the proposed Resolution Authorizing Execution of Professional Services Agreement with
Huibregtse, Louman Associates, Inc. for Design Services, and
C) Pass a motion calling for City staff to prepare and submit of documents required for the City to
provide wastewater service to the Ahtanum Sub -Basin and seeking an amendment to Exhibit A
of the Agreement for Wastewater Treatment and Disposal Service (4 Party Agreement)
entered into February 2, 1976 for the Sewer Service Area Boundary
D) Pass a motion to execute a separate Memorandum of Understanding pertaining to potential
future service to Apple Tree Property within the Coolidge and Washington Avenue sub -basins.
August 11, 2000
BUSINESS OF THE CITY COUNCIL
YAKIMA, WASHINGTON
AGENDA STATEMENT
Item No. - 3
For Meeting Of 2/6/2001
ITEM TITLE: A Resolution fixing the principal amount of the City's junior lien water and sewer
revenue bonds, 2001 (Apple Tree Project), and ratifying certain acts and proceedings.
SUBMITTED BY: City Manager's Office/ Utilities
Finance Department
Legal Department
CONTACT PERSON/TELEPHONE: Glenn Rice, Assistant City Manager 575-6040
Doug Mayo, Wastewater Manager 576-6077
Rita Ansn, Finance Director 575-6070
Tim Jense , ccountant 576-6639
Larry Peterson, Assistant. City Attorney 575-6030
SUMMARY EXPLANATION: On September 5', 2000 Council passed Ordinance 2000-35, authorizing
the issuance of up to $2.5 Million, 6%, Junior Lien Water/Sewer Revenue Bonds for the construction of
the Ahtanum Sewer Trunk Line, (Apple Tree Project). The agenda statement and transmittal letter that
originally accompanied Ordinance 2000-35 (the Bond Ordinance) and a map of the area are attached.
The adoption of this Resolution, which fixes the principal amount of the Bonds and ratifies all prior acts
is the last condition precedent to settling this financial transaction. Since construction bids will not be
received until January 31St° enclosed is a draft resolution that is blank as to the principal amount of the
Bonds. A final document containing the principal amount of the Bonds will be prepared and submitted
to Council as soon as such amount is known. Only after this completed resolution is adopted and the
transaction is closed, can a construction contract be awarded.
Resolution X _Ordinance Contract Other (Specify).
Funding Source N/A
APPROVED FOR SUBMITTAL:
3 City Manager
STAFF RECOMMENDATION: Adopt Resolution
BOARD/COMMISSION RECOMMENDATION:
COUNCIL ACTION: Resolution adopted. RESOLUTION NO. R-2001-20
MEMORANDUM
FEBRUARY 6, 2001
TO: The Honorable Mayor and Members of the City Council
Dick Zais, City Manager
FROM: K. Wen ell AdamsP.E., City Engineer
Tim Je , PA, Finance
SUBJECT: Ahtanum Sewer Trunk Line and Apple Tree Sewer Extension
On Wednesday, January 31, 2001, the City Clerk and the Purchasing Manager for the
City of Yakima conducted the bid opening for the above referenced project. Ten bids
were received. Most of the bids submitted were lower than the Huibregtse Louman
engineering estimate of $1,231,022.55. The primary reason for the bids being lower
than the estimate is a sharp reduction in the cost of sewer pipe. The accompanying
spreadsheet identifies the variances in more detail.
Apollo, Inc. of Kennewick, Washington submitted the lowest bid of $671,789.48,
including sales tax. Their bid was nearly $100,000 lower than either of the next two
bidders. We're reviewing all of the bids submitted and anticipate awarding the
contract to Apollo, Inc. as soon as the bond transaction closes. Costs associated with
the closing are expected to be negligible.
Since the bids received were substantially lower than the engineer's estimate, the
following information is provided for consideration in setting a bond amount.
Consultant Design, Complete PS&E $159,500.00
Bid Amount 671,789.48
Construction Staking 30,000.00
Construction Inspection 100,000.00
Video Inspection 20,000.00
Consultant & City Administrative Costs 20,000.00
Contingency 115,449.81
Total $1,116,739.29
Less: City Cash Contribution (325,000.00)
Apple Tree Cash Contribution (200,000.00)
Net $591,739.29
Rounded Total $600,000.00 Bond*
* Interest at 6% for up to 40 years in accordance with City Contract and Bond
Purchase Agreement with Apple Tree Partners.
13
Apple Tree Memo/B
AHTANUM/APPLE TREE SEWER
FINAL TO PRELIM. COST COMPARISON
FINAL BID RESULTS
PRELIMINARY ESTIMATE
ITEM
NO. ITEM DESCRIPTION
ITEM
UNIT
ITEM UNIT
QUANT. PRICE AMOUNT
ITEM UNIT
QUANT. PRICE AMOUNT
REMARKS
1 Spill Prevention Plan
2 Mobilization
3 Maint. & Protection of Traffic
4 Construction Signs, Class "A"
5 Clearing and Grubbing
6 Removal of Struct. & Obstruct.
7 Controlled Density Fill
14 Crush. Surf Base Crs. (Trench)
8 Asphalt Pavement Repair
9 Asphalt Pavement Overlay
10 Manhole, 60 -in Diam.
11 Manhole, 48 -in. Diam.
12 Manhole Add. Ht. 60 -in Diam
13 Manhole Add Ht. 48 -in Diam.
15 Gravel Shoulder Repair
16 Removal & Repl. Unsuit. Material
17 PVC San. Sewer Pipe, 24 -in.
18 PVC San Sewer Pipe, 18 -in.
19 PVC San. Sewer Pipe, 12 -in.
20 PVC San. Sewer Pipe, 10 -in
21 PVC San. Sewer Pipe, 4 -in.
22 Shoring or Ext. Excav, CI B
23 Sod Installation
24 Repair or Replacement
LS
LS
LS
SF
LS
LS
CY
CY
SY
TON
EA
EA
LF
LF
SY
CY
LF
LF
LF
LF
LF
LF
SY
FA
1 $587.00
$587.00
0 $0 00
$0 00
Not Expected in Prelim.
L.S + Flag Hr.'s + Signs
Incl'd in above Item
No Prelim. est.
No Prelim. est.
See Item 14, No orig. CDF
For entire project in Prlim.
Prelim. Incl'd in Roadway Repair
Roadway Repair in Prelim.
Prelim Incl'd Extra Ht + Castings
Prelim Incl'd Extra Ht + Castings
See above
See above
M.H. Adjust. In Prelim. only
No Prelim. est.
No Prelim. est.
Prelim. 8" No 12" planned
Import. Pipe Bedding in Prelim.
Prelim 18x4 & 24x4 tees/each
I Prelim. Shoring & Cribbing
Prelim. Surf Repair LS
I No Prelim. est.
1 $40,752 00
$40,752.00
1 $55,000.00
$55,000 00
1 $7,508.00
144 $39 99
$7,508 00
$5,758.56
1 $77,800 00
$77,800 00
$0 00
$13,266 56
$77,800.00
1 $2,769.00
$2,769.00
0 $0.00
$0.00
1 $5,459.00
$5,459 00
0 $0.00
$0 00
935 $46 99
415 $18 09
$43,935.65
$7,507.35
0 $0.00
2000 $13 00
$0.00
$26,000 00
$51,443 00
$26,000 00
1160 $20.88
200 $55 43
$24,220 80
$11,086.00
2200 $50 00
$0.00
$110,000 00
$35,306 80
$110,000 00
9 $2,489.22
38 $1,481 63
12 $175.17
55 $115 67
$22,402 98
$56,301.94
$2,102.04
$6,361.85
10 $4,645.00
31 $3,545.00
10
31
6 $400.00
$46,450 00
$109,895.00
$0.00
$0 00
$2,400.00
$87,168 81
$158,745 00
1200 $2.00
$2,400.00
0 $0.00
$0.00
975 $13 82
$13,474 50
0 $0.00
$0.00
2450 $34 08
7850 $25.88
1025 $25.18
1600 $18.69
$83,496 00
$203,158 00
$25,809 50
$29,904.00
3210 $107 00
7270 $84 00
860 $58 00
2100 $60.00
18400 $13.00
$343,470 00
$610,680 00
$49,880 00
$126,000 00
$239,200.00
$342,367.50
$1,369,230 00
310 $47 85
$14,833 50
1 $50,660 00
$50,660 00
13235 $0.40
$5,294.00
13440 $1.00
$13,440.00
200 $6.09
$1,218 00
1 $5,000 00
$5,000.00
1 $8,000 00
$8,000.00
0 $0 00
$0.00
$624,339.67
S.S Tx. 7.6% $47,449 81
$1,865,875.00
$141,806.50
NOTE: Item numbers correspond to the final Bid Summary TOTAL $671,789.48
$2,007,681.50