HomeMy WebLinkAbout1982-2652 AMENDING ORDINANCE NO. 2526 S
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ORDINANCE N .
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AN ORDINANCE of the City of Yakima, Washington
amending Ordinance No. 2526 to increase the
maximum amount of a loan authorized therein
110 from the State of Washington Department of
Ecology; authorizing the execution . of
amendments to the loan agreement; and
declaring an emergency.
WHEREAS, the City of Yakima, Washington (the "City ") owns,
maintains operates a water supply and distribution system and
sewerage collection and disposal system, and said water and
sewerage systems have been combined by law (the "System "); and
WHEREAS, by Ordinance No. 2526 passed on July 7, 1981, the
Council of the City authorized the execution of a loan agreement
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with the State of Washington, Department of Ecology (the "Depart-
ment") for an amount not to exceed $2,600,000 for the purpose of
financing additions and improvements to and extensions of the
System; and -
WHEREAS, pursuant to Ordinance No. 2526 a loan agreement
entitled the "Contract Between State of Washington Department of
Ecology and The City of Yakima For a Loan Under Chapter 43.83A
RCW, Waste Disposal Facilities Bond Issue" was executed between
the City and the Department on August 13, 1981 (the "Loan
Agreement "); and
• WHEREAS, the maximum amount authorized to be borrowed by the
City pursuant to the Loan Agreement is inadequate to complete the
work previously authorized by the City and that additional
changes in the terms of the contract are necessary; and
WHEREAS, Section 11.B of Ordinance No. 2526 authorizes the
adoption of ordinances supplemental thereto for the purpose of
adding or changing provisions of such ordinance with the consent
of the Department; and
WHEREAS, the Department has consented to increase the amount
available under the Loan Agreement and to make the changes
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required in the Loan Agreement and has proposed amendments to the
Loan Agreement which the Council of the City deems to be in the
best interest of the City. •
NOW, THEREFORE,. BE IT ORDAINED BY the City of Yakima,
Washington, as follows:
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Section 1. Definitions. As used in this ordinance the
following words shall have the following meanings:
A. "City" means the City of Yakima, Washington, a municipal
corporation duly organized and existing under and by virtue of
the laws of the State of Washington.
B. "Council means the Council of the City as the same shall
be duly and regularly constituted from time to time.
C. "Department" means the State of Washington, Department
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of Ecology or its successor under the Loan Agreement.
D. "Loan Agreement" means the "Contract Between State of
Washington Department of Ecology, and The City of Yakima for a
Loan Under Chapter 43.83A RCW, Waste Water Disposal Facilities
Bond Issue ", executed on August 13, 1981 between the City and the
Department.
Section 2. Amendment to Ordinance No. 2526. The provisions
of Ordinance No. 2526 are hereby ratified and confirmed, except
that:
Section 4 of Ordinance No. 2526 is hereby amended •
to read:
Section 4. Authorization of Loan. The
City shan enter into an agreement with the
State of Washington Department of Ecology to
borrow from time to time the aggregate
principal amount of not to exceed $3,000,000
for the purpose of providing part of the
funds necessary to purchase, acquire and
construct the Project, - to pay expenses of
litigation relating to construction of the
Project, to pay the expenses incidental to
the Loan and to pay any outstanding warrants
drawn on the Project Fund as provided by
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Section 3 of Ordinance No. 2133. The loans
shall mature on or before December 31, 1986,
and shall bear interest at the rate of 9.50
JARD2018/11/10/82 2 •
percent per annum from the respective dates
of draws payable annually on the anniversary
date of the draw.
The Loan shall be an obligation only of
the Loan Fund and shall be payable and
secured as provided in the Loan Agreement.
The loan shall not be a general obligation of
11, the City.
Section 3. Amendments to the Loan Agreement. The Council
hereby approves the amendments proposed by the Department to the
Loan Agreement as contained in Exhibit A attached hereto and by
this reference incorporated herein. The proper officials of the
City are hereby authorized and directed to execute the amendment
to the Loan Agreement substantially in the form of Exhibit A.
Section 4. Effective Date. This ordinance is necessary to
provide for the immediate preservation of the public peace,
property, health, safety and welfare 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
day of December, 1982.
By
M or
ATTEST:
4<aiL
City Clerk
APPROVED AS TO FORM:
City Attorney •
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Amendment No. 1
to the Loan Agreement between the
City of Yakima
and the Department of Ecology
• Loan No. WFL -82 -001
A modification is necessary for clarification of current practices and
authorizations and to increase the loan amount by $400,000 to a total of
A di k $3,000,000. These modifications were discussed in a meeting held
September 8, 1982 in the office of Mike Palko (Supervisor- Municipal
Division, WDOE) and by letters of September 22, 1982 from Dennis Bertek
(Project Manager - City of Yakima), and. October 20, 1982 from R. A. Zais
(City Manager).
Section 2 is modified to delete the $2,600,000 figure and replaced with
$3,000,000.
Section 3.b is revised to reflect a completion date of December 31, 1983.
Section 8, work item 1 is modified to delete the $1,600,000 figure and
replaced with $2,000,000. Also, the total of $2,600,000 is deleted and
replaced with $3,000,000.
Section 10.a is modified to delete the $2,600,000 figure and replaced
• with $3,000,000.
Section 11.c is deleted in its entirety and replaced with the following.
The CONTRACTOR shall have the option of paying in advance all or any part
of the unpaid portion of the principal amount of the loan; provided that in
the case of total repayment any interest accrued hereunder shall be paid at
the same time; and provided further that any such payment shall not relieve
the CONTRACTOR of its obligation to make the payment in the amounts and
times specified in the schedule of repayment until the principal amount of
the loan is repaid in full.
Section 11.d is deleted in its entirety and is replaced with the following:
• The CONTRACTOR shall pay interest to the DEPARTMENT at the rate of
9.5 percent per annum on the unpaid balance of the amounts of money
disbursed to the CONTRACTOR pursuant to this contract. Such interest
shall be based on the total amount of funds actually disbursed and
shall begin to accrue on the first day of the month following the
OONTRACTOR's receipt of the first disbursement. Such interest shall
be due and payable on September 1 of each year that the contract is
• in effect. The principal, in amount not to exceed $3,000,000 shall be
repaid as follows: the total amount of principal drawn by the
CONTRACTOR, less principal repayments, on or before December 31, 1983,
shall be divided into three equal installments. The first principal
installment shall be due and payable on or before December 31, 1984.
The second installment shall be due and payable on or before
December 31, 1985. The third installment shall be due and payable
on or before December 31, 1986. The CONTRACTOR reserves the right
to repay any principal balance as funds become available and further
agrees to be subject to paragraph 11(g).
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Section 12.c.2, the first paragraph is deleted in its entirety and replaced
with the following:
Beginning with the month of August 1983, and continuing annually for
as long as any portion of the loan is outstanding and unpaid, an •
amount which with other monies available therefore in the Loan Fund
will be equal to at least the interest to become due and payable on
the next interest payment date.
Section 16.b is revised to delete Norman L. Glenn as the contract officer. 41V
Gordon B. Douglass is the contract officer.
This amendment is entered into by the undersigned parties for the mutual
benefit received, and shall be made a part of the original agreement
effective on the date of signature of the assistant director of the department.
IN WITNESS WHEREOF, the parties hereto have executed this amendment as follows:
Gordon B. Douglass Date Richard Zais Date
Contract Officer City Manager
Municipal Division City of Yakima
Department of Ecology
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Glen H. Fiedler Date
Assistant Director
Office of Water Programs
Department of Ecology
Approved as to form this
day of , 19 .
Assistant Attorney General
Contract Sequence No.
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SCHEDULE I ~
Appropriate out of unappropriated cash of the 195 Contingency Fund:
To Account No. Amount _Purpose
95.195,645,0000.597,00.547 $5,500 For transfer to the General Fund to provide
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funding for computer room air conditioning.
195.195.645.0000.597.00.547 $2,000 For transfer to the General Fund to provide
funding for insurance consulting services.
SCHEDULE II
Transfer:
From Acct. No. To Acct. No. Amount Purpose
195.195.645.0000.597.00.547 000,052,631.0000.514.20.620 $5,560 To provide funding
for computer room
air conditioning.
From Acct. No, To Acct. No. Amount Purpose
195.195.645.0000.597.00.547 000,012,621,0000.513,10.410 $2,000 To provide funding
for insurance con-
sulting services.
SCHEDULE III
Appropriate out of unappropriated cash of the 000 General Fund:
To Account No. Amount Purpose
000.052,631.000.514,26,620 $5,560 To appropriate monies for computer room
air conditioning.
000.012.021.0000,513.10.410 $2,000 To appropriate monies for insurance cou-
aultiog services.
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