HomeMy WebLinkAbout06/04/2013 09 Financing of 74 Police Vehicles and 70 Fire Air Packsnk� nZ
BUSINESS OF THE CITY COUNCIL
YAKIMA, WASHINGTON
AGENDA STATEMENT
Item No.
For Meeting of: 6/4/2013
ITEM TITLE: Legislation regarding the financing and purchase of 74 Police
vehicles and 70 Fire Air Packs.
A. An ordinance authorizing the acquisition of 74 Police
vehicles and 70 Fire Air Packs and the execution of a related
financing contract with the Office of the State Treasurer and
other related documentation.
B. A reimbursement resolution declaring that the City
reasonably expects to reimburse expenditures for the
purchase of the 74 Police vehicles and 70 Fire Air Packs with
the proceeds of the financing contract.
SUBMITTED BY: Finance Department
SUMMARY EXPLANATION:
At the May 21, 2012 meeting Council approved an expansion of the Police assigned vehicle
program, to be financed by participating in the State Local Option Capital Asset Lending
(LOCAL) program. Staff was directed to bring back the applicable documents to accomplish
this financing to meet the State's deadline of a June 20 application with funding available in mid -
August.
Additionally, the Fire Department has experienced some failure in their self - contained breathing
apparatus (SCBA) units, and is expending significantly more than estimated in 2013 for
maintenance. A majority of these units were purchased about 10 years ago with grant funding,
and are all reaching the end of their useful life and are becoming a safety concern. The Fire
command staff has researched the possibility of replacing the failing units with grant funding,
but there are not grants currently available. City Management is recommending that the Fire
Department replace the faulty units as proposed, and the least expensive way to finance the
SCBA replacement is to use the same State program as the Police vehicles. Combining this
with the Police debt results in even more savings to the City, as bond issuance costs can be
shared between the two programs. If we were to wait, or even choose a different repayment
schedule, then each program would have its own set of issuance costs. The replacement of 70
units is estimated to cost about $500,000, with estimated annual debt service of about $88,000
for the next six years.
This Ordinance will authorize and direct staff to proceed with the acquisition of 74 Police
vehicles and 70 Fire air packs as proposed and to enter into the suggested financing agreement
with the Office of the State Treasurer. The estimated amount to be financed is about $4.6
million for Police and $0.5 million for Fire - -a total of $5.1 million. We have rounded the "not to
exceed" amount up to $5.5 million to be sure that issuance costs and any market condition
changes can be addressed.
The reimbursement resolution will authorize the City to reimburse the fund used to purchase the
74 Police vehicles and 70 Fire air packs including expenditures made prior to the financing
completion with the financing proceeds.
The Ordinance and the Reimbursement Resolution and other related documentation is in the
format directed by the Office of the State Treasurer as prescribed by State Legal Counsel and
may appear somewhat different than the format traditionally presented to Council.
Documents attached include: Staff memorandums describing the programs requiring the use of
the LOCAL program and the documents required to be submitted to the State, including the
Notice of Intent (Annex 1); Financing Contract (Annex 2), and Certificate Designating
Authorized Agency Representatives (Annex 3).
Since neither of these programs are currently included in the 2013 budget, an appropriation for
the $5.1 million capital investment and related borrowing, along with any debt service payments
that may be required in 2013, will be submitted by Finance when the final totals are
known. Ongoing debt service, estimated to be about $797,000 for Police and $88,000 for Fire
will be included in subsequent budget years.
Resolution: X
Other (Specify):
Contract: X
Start Date:
Item Budgeted: No
Funding Source /Fiscal
Impact:
Strategic Priority:
Insurance Required? No
Ordinance: X
Contract Term: 6 year
End Date:
Amount: Maximum of
$5,500,000
Fire Capital Fund - equipment; Law & Justice Capital
Fund - equipment; General Fund -debt service
Public Safety
Mail to: Return to Finance for mailing to State Treaurer's Office with
attachments
Phone: 509 - 576 -6771
APPROVED FOR
SUBMITTAL: City Manager
RECOMMENDATION:
A) Pass Ordinance; B) Adopt Resolution
ATTACHMENTS:
ORDINANCE NO. 2013-
AN ORDINANCE of the City of Yakima. Authorization for the acquisition of personal
property and execution of a financing contract and related documentation
relating to the acquisition of said PERSONAL PROPERTY.
WHEREAS, the City of Yakima (the "Local Agency ") has executed a Notice of Intent to
the Office of State Treasurer, in the form attached hereto as Annex 1 (the "NOI "), in relation to
the acquisition of and the financing of the acquisition of the Property, as defined below, under
the provisions of RCW ch 39.94; and
WHEREAS, it is deemed necessary and advisable by the City Council of the Local
Agency that the Local Agency acquire the equipment and /or personal property identified on
Annex 1 attached hereto ( "Property "); and
WHEREAS, it is deemed necessary and advisable by the City Council of the Local
Agency that the Local Agency enter into a Local Agency Financing Contract with the Office of
the State Treasurer, in the form attached hereto as Annex 2 (the "Local Agency Financing
Contract "), in an amount not to exceed $5,500,000, plus related financing costs, in order to
acquire the Property and finance the acquisition of the Property;
WHEREAS, the Local Agency will undertake to acquire the Property on behalf of and as
agent of the Washington Finance Officers Association (the "Corporation ") pursuant to the terms
of the Local Agency Financing Contract, and in accordance with all applicable purchasing
statutes and regulations applicable to the Local Agency; and
WHEREAS, the Local Agency desires to appoint the individuals set forth in Annex 3 as
the representatives of the Local Agency in connection with the acquisition of the Property and
execution of the Local Agency Financing Contract (each an "Authorized Agency
Representative ");
BE IT ORDAINED BY THE CITY OF YAKIMA:
Section 1. The individuals holding the offices or positions set forth in Annex 3 are each
hereby appointed as a representative of the Local Agency in connection with the acquisition of
the Property and execution of the Local Agency Financing Contract and all other related
documents. A minimum of one Authorized Agency Representatives shall be required to execute
any one document in order for it to be considered duly executed on behalf of the Local Agency.
Section 2. The form of the Local Agency Financing Contract attached hereto as Annex 2
is hereby approved and the Authorized Agency Representatives are hereby authorized and
directed to execute and deliver the Local Agency Financing Contract, in an amount not to
exceed $5,500,000, plus related financing costs, and in substantially the form attached hereto
with such changes as may be approved by the Authorized Representatives, for the acquisition
of the Property and financing of the acquisition of the Property.
Section 3. The Local Agency hereby authorizes the acquisition of the Property as agent
of the Corporation in accordance with the terms and provisions of the Local Agency Financing
Contract.
Section 4. The Authorized Representatives are hereby authorized to execute and
deliver to the Office of State Treasurer all other documents, agreements and certificates, and to
take all other action, which they deem necessary or appropriate in connection with the financing
of the Property, including, but not limited to, any amendment to the NOI and agreements
relating to initial and ongoing disclosure in connection with the offering of securities related to
the financing.
Section 5. This resolution shall become effective immediately upon its adoption.
PASSED BY THE CITY COUNCIL, signed and approved this day of 12013.
Micah Cawley, Mayor
ATTEST:
City Clerk
MEMORANDUM
To: Honorable Mayor and Members of the Yakima City Council
From: Tony O'Rourke, City Manager
Date: May 14, 2013
RE: Proposed Expansion of Assigned Police Vehicle Program
The City of Yakima is committed to providing a safe and secure environment for its
residents, businesses, and visitors. Unfortunately, random acts of gang violence,
property crime and auto theft have undermined the public's sense of security in Yakima
despite the fact that the crime index per capita in Yakima has been reduced by over
50% since 1990. Based on the 2012 Citizen Survey, only 26% of Yakima residents feel
safe from being a victim of a violent crime, and only 50% feel safe in their
neighborhoods after dark.
To ensure healthy and vital neighborhoods free of crime, the City has increased its
Gang Free Initiative partnerships and scope, created a second five - member gang unit,
initiated a full -time summer police bike patrol, increased lighting and surveillance
measures at key parking portals at the Greenway, added officers to the Violent Crime
Task Force and School Resource Officer program, and hired a full -time crime analyst to
enhance police intelligence and productivity.
To further increase police productivity, visibility, and community safety, the Chief of
Police, Yakima Police Patrolman's Association, and myself have collaborated on the
proposed expansion of the Assigned Police Vehicle (APV) program for City Council
review and consideration.
Assigned police vehicles are currently prevalent throughout the United States and share
several features. Typically, APV programs allow sworn police officers to travel to and
from their home to work. The initial benefits of the assigned police vehicles include:
Enhanced police presence in the community.
The greater visibility of police resulting from an increased number of
marked police vehicles on the streets will serve to increase Yakima's
citizens sense of security, and create the profile of a significant police
presence in the community. On a typical police shift, 4 to 17 marked
police vehicles are in the community. Based on an assigned police
vehicle program, the number would increase to 74, which represents a
435% increase over the maximum number of marked units currently in the
community at any one time.
2. Crime Deterrence
The significant increase of additional marked police vehicles in Yakima
neighborhoods, shopping centers, downtown, school zones, and
recreational areas signals the presence of police officers. This presence
will clearly have a "chilling" or deterrent effect upon individuals or gangs
contemplating committing a crime.
3. Improved police response times
By using marked police vehicles for off duty purposes, Yakima police
officers will be available to respond more quickly to emergencies given
they do not have to travel to the Police Department's central downtown
location to gain access to their vehicles and equipment. This valuable
time savings can prove critical in emergency circumstances.
4. Community relations
By increasing the presence of Yakima police officers, the public will have
both greater visibility and accessibility to them. This greater public contact
and involvement will increase public communications and mutual respect.
5. Supplement on -duty police force
The current on -duty patrol shifts will be greatly supplemented by off -duty
officers in their marked vehicles. Instead of a standard 4 to 17 person
shift, there could be up to 74 patrol officers on the streets of Yakima,
thereby adding extra eyes, ears, and hands for emergency situations or
providing a critical back -up for on -duty officers in dangerous situations.
6. Reduced vehicle unit cost
A number of assigned patrol vehicle studies have documented the fact
that assigned vehicles versus pool vehicles have longer useful lifespan
and lower maintenance and operating costs. With one operator,
responsibility and accountability for proper vehicle care and maintenance
is clearly fixed, unlike a pool vehicle.
7. Enhanced police productivity
On average, each officer spends 30 minutes per shift checking in and out
their patrol pool vehicles, as well as, loading and unloading their
equipment, paperwork and weapons. For Yakima, this represents
approximately 450 hours per month or the equivalent of 2.5 patrol officers
per year.
8. Greater police morale
The police patrol vehicle is an officer's office. Can you imagine having to
pack and then unpack your office after each workday? In addition, most
patrol vehicles are sedans. Most of our officers are above average in size.
Their physical stature, coupled with the radio, computer, files and
weapons in their vehicles make them very cramped. Now compound that
by a 10 hour shift driving. Under the proposed assigned police vehicle
program, officers will get to select between a police sedan or SUV. The
vast majority of patrol officers want an SUV to work and drive in. By
meeting their needs, officer morale, productivity, and job satisfaction will
increase.
The City of Yakima has been engaged in assigned police vehicles for at least 20 years.
The City currently assigns about 60 vehicles to police command staff and officers in
specialty positions (e.g. detectives, gang unit, transit officer, traffic unit, housing officer,
SRO's and K -9 officers). Thirty -one of the 60 currently assigned vehicles are assigned
to patrol (24 marked and 7 unmarked). The goal of expanding the existing police
assigned vehicle program is to include all police patrol officers. This will require the
purchase of 74 additional vehicles at a total cost of $4,780,254 or $796,709 annually for
six years. Based on the attached financial analysis, the capital cost of purchasing 74
patrol vehicles is offset by the historical capital investment annually for police patrol
vehicles ($425,000), coupled with the projected costs savings of not providing a
traditional annual cost of living adjustment to the police officers. Eliminating a YPPA
COLA adjustment for FY 2013 and FY 2014, would save the City approximately
$800,000 annually.
Over the past decade, police officers have averaged an annual 3.7% cost -of- living
adjustment. Assuming the elimination of a more conservative 3% COLA for the next
two years, this represents a compounded savings of $4,441,470 over the next six years,
or the expected life of the new assigned police vehicles. In addition, the City expects to
generate approximately $219,000 in police productivity or the full time equivalent of 2.5
patrol officers by eliminating the average 30 minutes patrol officers spend checking
out /in patrol pool vehicles and loading /unloading equipment for their pool vehicle per
shift. In summary, the APV program pays for itself through the YPPA eliminating its
cost of living adjustments and enhanced police productivity. The YPPA has committed
to memorializing their willingness to eliminate a cost -of- living adjustment in FY 2014 and
FY 2013, subject to City Council approval of the expanded APV program (see attached
memo from YPPA President).
Financing Method
To finance the proposed $4,780,254 investment in 74 additional police patrol vehicles,
staff intends to utilize the State of Washington Capital Asset Lending Program.
The Washington State Treasurer's Office administers an equipment financing tool for
local governments titled Local Option Capital Asset Lending (LOCAL). The basic
premise of the program is that the state consolidates local government financing needs,
issues bonds twice a year and purchases equipment then leases the equipment to the
local government. The City has used this program recently for the purchase of fire
apparatus. It is a low cost option for the City because we get interest rates based on
the state's credit rating (Moody's Aa2) versus the City of Yakima's credit rating of A+
and share the bond issuance costs among all participants in the pooled financing. Our
completed request for financing must be submitted by June 20 for funding available in
August, or by January 10 for funding available in March. The annual debt service of
about $797,000 was calculated assuming we borrowed $4,539,900 in August 2013 at
1.5% interest, and repay it over the 6 -year estimated life of the cars starting in FY 2014.
Should Council agree to this program, the next stop will be for staff to bring a bond
ordinance authorizing all the appropriate documentation as required by the State
Treasurer at the next meeting on June 4 so that we can meet the June 20 deadline.
Proposed Assigned Police Vehicle Use Policy
To ensure the best and most appropriate use of the APV program, assigned police
vehicles will be subject to the attached policy, which includes the following key
elements.
• Assigned police vehicles can only be driven by sworn officers of the Yakima
Police Department.
• Any officer assigned a police vehicle after 1/1/14 must reside in Yakima
County and within 10 linear miles of the City. This is consistent with currently
assigned police vehicles.
• While off duty, officers will monitor the police radio.
• Members of the officer's immediate family and friends over the age of 18 may
ride with an officer while off duty. The occupants of the patrol vehicle are all
covered by the City's insurance.
• When off duty, officers must be armed and carry their police badge.
• While the police vehicle is unattended all radio, firearms, and other weapons
shall be secured and locked in a separate compartment or trunk.
• Off duty officers operating a police vehicle will ensure they are always
appropriately dressed.
• APV will not be operated after an officer has ingested any amount of alcohol
or drug that impairs their abilities.
• Assigned patrol vehicles must be parked in driveways, not garages, to ensure
maximum public visibility.
Based on the empirical results of numerous cities, and my own personal experience in
implementing an assigned police vehicle program, I strongly recommend the City
Council approve the acquisition of 74 additional marked police patrol vehicles for FY
2014 based on the benefits of increased community security, crime deterrence, and
police productivity.
Finally, I would like to thank the YPPA and its police officer members for their
willingness to eliminate a cost of living adjustment for the next two years to ensure the
financial contribution necessary to expand the assigned police vehicle program to all
Yakima police officers. This is the kind of unselfish and "win -win" commitment that will
ensure Yakima's future is better and safer than in the past.
Administration
Fire Suppression
Fire & Life Safety
Division
Investigation
Division
Training
Communications
City of Yakima Fire Department
401 North Front Street, Yakima, WA 98901
MEMORANDUM
May 16, 2013
TO: Public Safety Committee
FROM: Dave Willson, Fire Chief
SUBJECT: Proposed SCBA Purchase
(509) 575 -6060
Fax (509)576 -6356
www.yakimafire.com
Earlier this year, it was brought to my attention that the MSA budget of $12,000 has been
overspent by over $19,000. The cause of this overrun was the poor condition of the first
stage regulators and other parts that needed repair or replacement. Sea Western
technicians were hired to complete flow tests and make repairs. The amount of the
overrun in the MSA budget will be compensated this year by a reduction in the PPE
budget. The Self Contained Breathing Apparatus and high pressure bottles will have to be
replaced within the next five years due to age and mandatory equipment retirement
statutes.
In a regular meeting with the City Manager I informed him that I was going to be over
budget in the MSA budget by 100% due to the condition of the air packs and I would need
an increase in the MSA repair budget line for 2014. The City Manager asked me to get an
estimate of replacing the breathing apparatus rather than doubling the repair bill each
year. This research resulted in the City Manager authorizing a study to purchase new
SCBA's up to a cost of $500,000.
Purchasing new Self Contained Breathing Apparatus will have a positive impact on the
Yakima Fire Department in the following ways:
• The cost of repairing our ageing air packs is substantially greater each year; this
increase is impacting other areas of our budget.
• This is a Department infrastructure improvement that will allow us to concentrate
future grants and expenditure planning on other areas such as radios, TIC's, MDC's
etc.
• The purchase of new generation packs which will improve safety of our firefighters
by incorporating new mandatory safety features in Breathing Apparatus.
• Purchasing MSA brand Breathing Apparatus will facilitate interoperability with all
surrounding departments which use and maintain the same brand of equipment.
Chief Soptich facilitated input from the shift personnel on which brand SCBA was
preferred. For performance, interoperability, and budgetary reasons MSA Breathing
Apparatus was chosen.
We would be purchasing the new generation of air packs which will cost over $1000 per
pack more than the 2007 standard SCBA. To facilitate this increased cost we will only
order the amount of new bottles along with the packs that would keep us under our
$500,000 ceiling. Nearly 85% of our bottles are still operational for another 5 years and
would be interchangeable with the new MSA Breathing Apparatus. The remainders of the
current air bottles are serviceable for 10 years. This will give us a large amount of spare
bottles that can be transported on a first response apparatus in case the air truck does not
respond on the first call.
Notice of Intent
State of Washington LOCAL(Local Option Capital Asset Lending)
Local Government Information
County: _Yakima_
Legal Name: _City of Yakima
Contact Person: _Tara Lewis_
Address: 129 N 2nd St Yakima WA
Phone: 509 -576 -6639
MCAG No.: _0857_
Title: _Financial Services Manager_
Zip: _98901_
Fax: _509 -576 -6364_ E -mail: tlewis @ci.yakimawa.us_
Would you prefer to receive financing documents (check one): ❑ Already have financing documents
® MS Word 6.0 by e -mail ❑ 3.5" disk — Word 97 by U.S. mail ❑ Hard copy by U.S. mail
Property (Real Estate or Equipment)
Property description (include quantity, if applicable): A) 74 (seventy -four) police cars and B) 70 Air packs (breathing apparatus)
Total cost: $ 6,000,000 Maximum amount to finance: $5,500,000
Finance term: 6 years Useful life: 6 years Desired financing date: August 21, 2013
Purpose of property (Please be specific and include dept. of use): 1. The 74 police cars will be assigned to individual police
officers. In the past, officers shared vehicles between shifts. This will extend the expected life of the car and make them more
visible to the community. 2. The airpacks are required for entering burning structures.
If real estate, the Real Estate Worksheet ❑ Is attached ❑ Will be provided by (date)
If equipment, will the property purchase price be paid with: ❑ program proceeds or ® general funds to be reimbursed from
program proceeds? If general funds are to be used, include a copy of the local agency's reimbursement resolution with the financing
documents.
Security Pledge
❑ Voted general obligation of local government.. ® Non -voted general obligation of local government
Other Information
Approximate population: (not required for cities and counties).
If any of the following apply, please provide a complete discussion on a separate page:
® Yes ❑ No Does the local government use registered warrants, interfund loans or other cash flow borrowing?
❑ Yes ® No Is the local government a party to significant litigation?
® Yes ❑ No Is this a reimbursement? If yes, date funds spent — funds will be spent from General Funds and
reimbursement request made subsequently.
We are not required to submit the Credit Form because
Has local government received a bond rating in the last two years? ® Yes ❑ No Bond rating(s): A+
(attach rating agency letter)
By executing this Notice of Intent, the local agency acknowledges, agrees to and accepts its designation and appointment as the agent of the nominal
lessor in connection with the acquisition of the project. By executing this Notice of Intent, the local agency further acknowledges and agrees that
certificate counsel and any other special counsel to the state in connection with the authorization, issuance and delivery of the certificates and the
related financing documents shall not be acting, and shall not be deemed to act, as counsel to the local agency, nor shall any attorney -client
relationship exist or be deemed to exist between such counsel and any participating local agency in connection with such matters.
Submitted by: Cindy Epperson
Title: Finance Director
Date:
Annex 2 to Authorizing Resolution (Equipment)
LOCAL AGENCY FINANCING CONTRACT, SERIES 2013D
(Equipment)
This Local Agency Financing Contract, Series 2013D the "Agency Financing Contract ") is entered into
by and between the state of Washington (the "State "), acting by and through the State Treasurer (the
"State Treasurer "), and The City of Yakima, a City of the State (the "Local Agency ").
RECITALS
WHEREAS, certain State agencies (as defined in Appendix I hereto, "State Agencies ") are authorized
to acquire real and personal property used or needed by such State Agencies through Agency Financing
Contracts entered into pursuant to Chapter 356, Laws of Washington, 1989, codified as Chapter 39.94 of
the Revised Code of Washington (the "RCW "), as supplemented and amended (the "Act "); and
WHEREAS, Chapter 291, Laws of Washington, 1998 supplemented and amended the Act to authorize
the State to enter into Agency Financing Contracts on behalf of certain local agencies (as described
therein, "Local Agencies "), including the Local Agency, to finance the acquisition of real and personal
property by such Local Agencies; and
WHEREAS, the State Treasurer has established a consolidated program providing for the execution and
delivery of certificates of participation in such Agency Financing Contracts, or in Master Financing
Contracts with respect thereto, in series from time to time in order to provide financing or refinancing for
the costs of acquisition of real and personal property by State Agencies and Local Agencies; and
WHEREAS, simultaneously with the execution and delivery hereof, the State is entering into a Master
Financing Contract, Series 2013D, dated as of the Dated Date (the "Master Financing Contract ") with the
Washington Finance Officers Association, a nonprofit corporation duly organized and existing under and
by virtue of the laws of the state of Washington (the "Corporation "), to provide financing for the costs of
acquisition of certain items of personal property by certain State Agencies and Local Agencies, including
the Local Agency, under the terms set forth therein; and
WHEREAS, the State Treasurer and the Local Agency have determined that it is necessary and
desirable to enter into this Agency Financing Contract to provide financing or refinancing for the costs of
acquisition of certain items of personal property, described in Exhibit B hereto (the "Property "), by the
Local Agency; and
WHEREAS, the State Finance Committee has authorized the execution and delivery of this Agency
Financing Contract pursuant to Resolution No. 987 adopted on October 7, 2003; and
WHEREAS, all acts, conditions and things required by law to exist, to have happened and to have been
performed precedent to and in connection with the execution and delivery of this Agency Financing
Contract do exist, have happened and have been performed in regular and due time, form and manner as
required by law, and the Parties hereto are now duly authorized to execute, deliver and perform their
respective obligations under this Agency Financing Contract;
NOW THEREFORE, in consideration of the mutual covenants and agreements contained herein and for
other valuable consideration, the Parties hereto mutually agree as follows:
Section 1.1 Defined Terms. Capitalized terms used but not otherwise defined in this Agency
Financing Contract shall have the respective meanings given such terms in Appendix I hereto.
Section 1.2 Notice of Intent; Personal Property Certificate; Certificate Designating Authorized Local
Agency Representative. The Local Agency has delivered a Notice of Intent to the State Treasurer in the
form of Exhibit A attached hereto and incorporated herein by this reference. In order to evidence its
acceptance of the Property financed and acquired pursuant hereto, the Local Agency has executed and
delivered herewith, or will execute and deliver within 60 days from the Dated Date to the State Treasurer,
a Personal Property Certificate in the form of Exhibit B attached hereto and incorporated herein by this
reference. The Local Agency has delivered a Certificate Designating Authorized Agency Representatives
to the State Treasurer in the form of Exhibit C attached hereto and incorporated herein by this reference.
Said Certificate is currently in force and has not been amended, withdrawn or superseded, and the
signatures shown thereon are true and correct originals of the signatures of the persons who hold the titles
shown opposite their names. The signature of any one of the individuals shown on said Certificate is
sufficient to bind the Local Agency under this Agency Financing Contract with respect to any of the
undertakings contemplated herein. The terms and provisions set forth in Appendix II hereto are
incorporated herein and made a part hereof by this reference.
Section 1.3 Installment Sale and Purchase of Property. The State hereby agrees to sell, assign and
convey, and does hereby sell, assign and convey to the Local Agency, and the Local Agency hereby
agrees to purchase, acquire and assume, and does hereby purchase, acquire and assume, from the State, all
of the State's right, title and interest in and to the Property and all proceeds and profits thereof and
therefrom, subject to the security interest created pursuant to Section 2.5 of Appendix II hereof, and the
Local Agency agrees to pay in consideration thereof the Purchase Price therefor and interest thereon and
the Additional Costs in accordance with Section 1.4 hereof, and all other amounts required to be paid by
the Local Agency hereunder, all in accordance with the provisions of this Agency Financing Contract.
Section 1.4 Agency Installment Payments. In consideration of the sale of the Property and the
covenants and agreements of the State in this Agency Financing Contract, the Local Agency hereby
promises to pay to the State the following amounts at the following times: (a) On each Agency
Installment Payment Date, the Agency Installment Payment set forth in Exhibit D hereto, consisting of a
Principal Component and /or an Interest Component as set forth in such Exhibit; and (b) All Additional
Costs incurred by the State in connection with the sale of the Property to the Local Agency, the execution
and delivery of the Certificates, and the observance and performance of the Series 2013D Agreements,
within thirty (30) days following receipt of an invoice from the State with respect thereto which includes
(i) a brief description of each such Additional Cost, (ii) the party to whom payment is due, (iii) the
amount thereof, and (iv) such additional information as the Local Agency may reasonably request.
Section 1.5 Term. The term of this Local Agency Financing Contract shall commence on the Dated
Date and shall terminate on the date on which all amounts due hereunder shall have been paid or the
payment thereof duly provided for pursuant to Section 4.3 of Appendix II hereof.
STATE OF WASHINGTON City of Yakima
OFFICE OF THE STATE TREASURER as Local Agency
By By
Designated Treasurer Representative Authorized Agency Representative
Authorized Agency Representative
Certificate Designating Authorized Agency Representatives
I, Sonya Claar -Tee, City Clerk of the City of Yakima (the "Local Agency "), hereby certify that, as of the
date hereof, pursuant to Resolution No. 2013- /Ordinance No. 2013- , the following individuals are each an
"Authorized Agency Representative," as indicated by the title appended to each signature, that the following
individuals are duly authorized to execute and deliver the Local Agency Financing Agreement to which this
Certificate is attached as Exhibit C, and all documentation in connection therewith, including but not limited to the
Personal Property Certificate(s) attached thereto as Exhibit B, that the signatures set forth below are the true and
genuine signatures of said Authorized Agency Representatives and that pursuant to such resolution/ordinance, one
of the three following signature(s) [is /are] required on each of the aforementioned documents in order to consider
such documents executed on behalf of the Local Agency:
(signature)
(signature)
(signature)
Dated this 4th day of June, 2013.
Tony O'Rourke, City Manager
Cindy Epperson, Director of Finance and Budget
Tara Lewis, Financial Services Manager
City Clerk
City of Yakima, WA
SUBSCRIBED AND SWORN TO before me this 4th day of June, 2013.
By:
NOTARY PUBLIC in and for the State of
Washington residing at:
Printed Name:
My Commission Expires: