HomeMy WebLinkAbout1980-2422 ISSUANCE & SALE OF VOLCANO EMERGENCY FUND WARRANTS TO PROVIDE FUNDS TO PAY COSTS OF CERTAIN EMERGENCY SERVICES ORDINANCE NO.
AN ORDINANCE providing for the issuance and sale of Volcano Emer-
gency Fund Warrants to provide funds necessary to
pay the costs of certain emergency services required
of the City of Yakima; providing for the terms of said
warrants and for their sale; and declaring an emer-
A10 gency.
WHEREAS, the City of Yakima, Washington (the "City"), has •
received substantial ash fallout from the recent eruption of Mount
St. Helens, necessitating extensive street cleaning and other emer-
gency services relating to the streets, properties and facilities
of the City, and
WHEREAS, the City has incurred and is incurring substantial
costs to provide such emergency services,. and
• WHEREAS, pending the receipt of anticipated federal grants
and other moneys to provide for the payment of such emergency ser-
vices, it is necessary to provide for .interim financing of such
costs in accordance with the procedures authorized by state law,
including the provisions of RCW 35.21.085 and 35.21.086, and
WHEREAS, the City Council does hereby find and declare an emer-
gency to exist because of the facts and circumstances recited above
so that this ordinance shall become immediately effective as an
emergency ordinance in accordance with Article VI, Sec. 2, of the
Yakima City Charter, as provided by Section 6 of this ordinance, now
therefore,
BE IT ORDAINED BY THE CITY OF YAKIMA:
Section 1. Definitions. As used in this ordinance, the follow-
ing words shall have the following meanings:
a. The word "City" means the City of Yakima, Washington.
b. The words "Emergency Services" mean street cleaning, ash
removal and other emergency services relating to the streets,
• properties and other facilities of the City required as a consequence
of the volcanic activity of Mount St. Helens.
c. The word "Warrants" means the registered warrants drawn
on the Volcano Emergency Fund and made payable to the Claims Fund,
pursuant to and for the purposes provided in this ordinance.
Section 2. Authorization of Warrants. There has heretofore
been created a special fund of the City designated the "Volcano
Emergency Fund." Said fund shall be utilized for the payment of
costs incurred in providing Emergency Services within the City
of Yakima. At such time or times as moneys on hand in the Volcano
Emergency Fund are insufficient to pay such costs, Warrants suf-
ficient in amount to meet the aggregate amount of such obligations
shall be drawn on the Volcano Emergency Fund and made payable to the
Claims Fund of the City. Said Warrants shall bear interest from
date of registration, payable upon redemption at such rate or
rates as determined by the City Finance Director. Warrants shall
be numbered from one up consecutively in order of their issuance,
shall be sold by the City in accordance with the procedure set
forth in Section 5 hereof, and the proceeds of the sale of such
Warrants shall be deposited in the Claims Fund of the City and
utilized to pay such costs.
Both principal of and interest on the Warrants shall be pay-
able in lawful money of the United States of America at the office
of the City Treasurer in Yakima, Washington, and shall be obliga-
tions only of the Volcano Emergency Fund.
Section 3. Limitation on Warrants. The maximum amount of
Warrants SQ registered and sold by the City shall not exceed
$3,500,000.
Section 4. Redemption of Warrants. The City hereby covenants
that all federal, state or other moneys received by the City of
Yakima for the purpose of providing funds necessary to provide for,
or compensate the City for providing, Emergency Services shall be
paid into the Volcano Emergency Fund and moneys so paid into such
41" fund shall be utilized to call and redeem outstanding Warrants
drawn on the Volcano Emergency Fund in direct numerical order.
Warrants may be called for redemption and payment, in order
of their number, at any time when there are on deposit in the Vol-
cano Emergency Fund moneys sufficient to so redeem any outstanding
Warrant or Warrants, plus accrued interest thereon to the date
of redemption.
-2-
Notice of such intended redemption shall be given in writing
to the original purchaser of the Warrant or Warrants to be redeemed
at least three business days in advance of the scheduled time of
such intended redemption. Interest on any Warrant so redeemed shall
.411 cease on such redemption date unless the Warrant is not redeemed
upon presentation made pursuant to such call.
In the event that the aforesaid grants and any other moneys
paid into the Volcano Emergency Fund are insufficient to pay the
principal of and interest on all outstanding Warrants drawn on such
fund, the City covenants that it will deposit into such fund moneys
sufficient to pay such principal and interest, including, if neces-
sary, the proceeds of its limited tax levy general obligation bonds
issued in amounts not exceeding the applicable limitation of indeb-
tedness of the City.
Section 5. Sale of Warrants. The appropriate City officials
are hereby authorized and directed to do everything necessary for
the issuance and sale of the Warrants and the proper application
of the proceeds of the sale thereof. The City Finance Director is
authorized to negotiate the sale of the warrants with such purchaser
or purchasers and for such interest rate or rates as he deems in
the best interest of the City, taking into consideration the pre-
vailing interest rates in the marketplace for like securities.
Section 6. This ordinance is one to provide for the immediate
preservation of the public peace, property, health, safety and wel-
fare of the people of the City of Yakima and an emergency is hereby
declared to exist and this ordinance shall be in full force and effect
immediately upon its passage, approval and publication as provided
by law and by the City Charter.
PASSED BY THE CITY COUNCIL, signed and approved this 3 day
of /261L 1980.
',
Mayor
ATTEST:
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ty Cler
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APPROVED AS TO FORM:
City Attorney
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I, IRIS LITZENBERGER, Clerk of the City of Yakima, Wash-
ington, DO HEREBY CERTIFY that the foregoing is a true and
complete copy of Ordinance No. /Y•.,22-. of said City duly passed
by its City Council at a meeting thereof held the
../t-J day of , 1980.
1 11
Cie' Clerk/
do .
• 4.411;14
C E R T I F I C A T I O N
I, IRIS LITZENBERGER, do hereby certify that the following is a
true and correct copy of an excerpt of the minutes of the City
Council meeting of June 3, 1980, showing the introduction, reading
and adoption of Ordinance No. 2422;
"City Manager Zais stated that this proposed ordinance is brought
to Council to set up a mechanism to pay the cost of emergency
services for clean -up process. Art Zerbach, Director of Finance and
Budget, stated that the ordinance gives the City the authority to
issue registered warrants, which is a way the City borrows money.
He reported that Rainier Bank, Peoples Bank and Seattle First have
expressed an interest in purchasing these warrants. He stated that
it is important for Council to be aware of a paragraph on page three
of the ordinance which states 'In the event that the aforesaid grants
and any other moneys paid into the Volcano Emergency Fund are insuf-
ficient to pay the principal of and interest on all outstanding Warrants
drawn on such fund, the City covenants that it will deposit into
such fund moneys sufficient to pay such principal and interest,
including, if necessary, the proceeds of its limited tax levy general
obligation bonds issued in amounts not exceeding the applicable
limitation of indebtedness of the City'. They are requiring that if
the Federal funds don't come in, then the Council covenants to issue
Councilmatic bonds. Councilman Beauchamp inquired about borrowing
money from the other City funds. Mr. Zerbach stated that it would be
difficult to audit trail and we will be requested to keep extremely
complex records on this. It was MOVED by Hinman, seconded by Buchanan
that Ordinance No. 2422, providing for the issuance and sale of
Volcano Emergency Fund Warrants, be passed: carried, Beauchamp,
Buchanan, Carmichael, Crest, Doty, Edmondson and Hinman voting aye
on roll call.
ORDINANCE NO. 2422, AN ORDINANCE providing for the issuance and sale
of Volcano Emergency Fund Warrants to provide funds necessary to pay
the costs of certain emergency services required of the City of
Yakima; providing for the terms of said warrants and for their sale;
and declaring an emergency."
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City Cler
'Date